HomeMy WebLinkAboutAudit Committee Minutes - October 28, 2024 Cape Breton Regional Municipality
Audit Committee Meeting Minutes
October 28, 2024
1:30 p.m. Via Videoconferencing
Committee
Councillor Steve Parsons, Vice-Chair, Chairman
Deputy Mayor James Edwards
Councillor Earlene MacMullin
Councillor Glenn Paruch
Councillor Lorne Green
Citizen Mark Galley
Also Present
Mayor Amanda M. McDougall-Merrill
Councillor Gordon MacDonald
Councillor Steve Gillespie
Councillor Ken Tracey
Councillor Darren Bruckschwaiger
Councillor Darren O'Quinn
Staff
Marie Walsh, Chief Administrative Officer
John MacKinnon, Deputy Chief Administrative Officer
Jennifer Campbell, Chief Financial Officer
Christa Dicks, Municipal Clerk
Demetri Kachafanas, KC, Regional Solicitor
Tyson Simms, Director of Planning and Development
Ray Boudreau, Director of Wastewater
Adam MacNeil, Manager of Finance
Jenna MacQueen, Communications
Sharon MacSween, Recording Secretary
Audit Committee Meeting - Minutes
October 28, 2024 Approved March 5, 2025 Page 2 of 4
The following does not represent a word for word record of the proceedings
of this meeting. The agenda, reports, supporting documents, information
items circulated, and video (if available) are online at w w...........c Ib r m..............n s............c a....
Chairman Steve Parsons called the meeting to order.
Roll Call
10 Approval of Minutes
Motion
Moved by Councillor MacMullin, seconded by Deputy Mayor Edwards, to
approve CBRM minutes from:
➢ Audit Committee Minutes - September 29, 2021
➢ Audit Committee Minutes - October 18, 2022
Motion Carried
2m Approval of Agenda
Motion
Moved by Councillor Paruch, seconded by Deputy Mayor Edwards, to approve
the October 28, 2024, audit committee agenda as presented.
Motion Carried
3m Presentations
a) Annual Financial Report - Year Ended March 31,, 2023
Jennifer Campbell, Chief Financial Officer, discussed the reason for meeting
before the newly elected officials are sworn in is to meet the deadline to
apply for the debenture. CFO Campbell presented the Cape Breton Regional
Municipality's (CBRM) annual financial report for year ended March 31, 2023.
A copy of the presentation is attached to this set of meeting minutes for
reference on page five.
Audit Committee Meeting - Minutes
October 28, 2024 Approved March 5, 2025 Page 3 of 4
im Draft CBRM Consolidated Financial Statements for
Year Ended March 31,, 2023
A copy of the draft CBRM consolidated financial statements for year ended
March 31, 2023, are attached to this set of meeting minutes for reference on
page thirty-four.
NO Draft CBRM Water Utility Financial Statements for
Year Ended March 31,, 2023
A copy of the draft CBRM water utility financial statements for year ended
March 31, 2023, are attached to this set of meeting minutes for reference on
page sixty-nine.
b) Audit Findings Report to the Audit Committee for Year
Ended March 31,, 2023
Darren Chiasson, CPA / CA - MNP Parter / Business Advisor, reviewed the
audit process. A copy of the audit findings report presented to the CBRM
Audit Committee for year ended March 31, 2023, is attached to this set of
meeting minutes for reference on page eighty-seven.
The following motion was then put forward:
Motion
Moved by Councillor MacMullin, seconded by Councillor Paruch, that a
recommendation be made to Council to approve and release the:
• CBRM Consolidated Financial Statements for the Year Ended March 31,
2023
• CBRM Water Utility Financial Statements for the Year Ended March 31,
2023
• Audit Findings Report for the Year Ended March 31, 2023
Motion Carried
Meeting adjourned at 2:39 p.m.
Audit Committee Meeting - Minutes
October 28, 2024 Approved March 5, 2025 Page 4 of 4
Eldon MacDonald
Deputy Mayor
Christa Dicks
Municipal Clerk
/Sim
�I
i
,w Finanui,al Report
u
Ended March 3,1, 2023
CAPE E
REGIONAL MUNICIPALITY5
*,ty
eto gi na'l Municipall
Cape Br n Re ' '*0
Year en ,02,3,
CAPITAL HIGHLIGHTS OPERATING HIGHLIGHTS
$47.9,ni in Capital PrQj!e,ct work, a FIONAIH I(estimated$7.2M in damages,t,o Mar,31/23)
$43.9m - Municipal n INFLATION114
Wastewater treatment plants, a Deed'Transfer Tax,
Underground infrastructure ju Tax sale�recover I jes
Roads and Sidewalks a Ratification of CUPS 933 Collective Agreement
Parks,,Trails,Arenas m Fi rst,eve r CB R M operati ng def i cit
Fire,apparatus
Transit&Fleet
Water
POLICY/PLANNING HIGHLIGHTS OPERATING RESULT'S
CBR M Forward, X CBR'M Operating Fund Deficit($7,15k)
Transit study,ongoing m Water Utility Operating Fund Surplus $533k
AsRetirement Obligation Sten'
Implementation
2
�Ir I I
o R,ia,,g,wio,na'I MunmiplaIi y
Cape Bre
�
endedMset Retirement ObIligations,
Yea,r,
_......._ .. �� �...... .....--- ........... .w........................ n�. _..... ....
ARO Assets ARO Lila ,ie
• BuIldings 6871,1107Buildings, 113371619
127,9613 FIs 4t39101,08,5
rigerants 12760 m Refrigerants 13,792
Tanks $ 81,569 im Fuel Tanks16,9t664
• Landfill Post-Closure m Landfill Closure Obligations $3016181,459
Monitoring $ 418061,2139m indf H Pest-ClosureMonitoring 5 ,�� ,
11,11-111-111,11,
CBRMI l 51715,497 C Total 1$41,286�119
Water,Tanks $ 114#525 Water Tanks $ ,
74197
k �
t i
CaCuRM
pital and0,perating,
CAPE, BRETON Reserve Funds
REGIONAL MUNICIPALITY
Agenda page Year Ended March, 311, G023
references noted for
Audited F/S
a m Schedules
AqWajs
............ ----------- ...........
2,022-23, 2022-23 Variance
.......
Rev e ni u e
Total Taxes, 1190,87257 1 17 42 1 345f $ 1 t 616 5 9-
o'',tal''Fe—d,eraf-6ove rim e!nt 3 03P,11478 3, 08.3 5:39
...... ........ 4, 1
5 726 85,4
Total Federal Giovernment A eincies, 3�,f�6 11
aMaTotal Provinc,Jal iiovernrnent ,96�0,6,94 2 0017810 52 884
- 0 - .........
tal ProVincial 0overnment:Agencie's 3 5165 5, 3,386 73ffa 178'726
Tolat Services to C>the�r Local 0overnmenit 1 2,665,723, 9 79 90 9 28,6814
2 1019 991� ic �0�
-- ---------------
to-I'a-11Envi'ronme�trital DevelopmentSarvic336,82,2 250 500 86 322
10MONO as ................... T .........
Total Licenf & Reirrnits I 1374,94 1
Total FineFees 725755 862 422,
............... ........... ... .... -��I. .- 1 1.11� 7,,"-1.11�,-.�......
TotalRentalsi 58 2 10,7'7 5�8 6 7'7
................ ............. 1 --(. ......
Total Ccmcessions&Franchises 944 789 70 242789
C: .......... ---------- ... .............-.1l.-"-."Il -I-- I-----,--,-,------�?-,pplc) . L.�J-
Total I nterest 2 35�8 575 1 '1 515 0,00
:3f ...............................-11-1111-111111---- -V--wl . ..,t-'.�,--1----�.............
Revenue -3-0 10 0 10 11 12 760
11MIL 111--l-1-11-11.11-�11.1- ............
'Total Solid Wast:(�., RL--venue, 2 849,716f 24-1716
............. ................. 7-J. .-Ill 111 --- . - -
Total Recreation a�Cultural Service Pr-o, rams 1,041 1 7'c4 8 500,
Total\A/ate,r Uti1it Char g 4,9,51...51�0,
15 1,�851 9 8, 516141
_ w1al Unconditional 7ransfers :7 9, 6 3 .838
Cul 3,536 576 3,68
Totail Extra., J qvenue CE?isastiier Recave.r 6 213 342 612-1,_3,3 4 2
.....................
T'cxta,I,Revenue I1'71,432,,§,QG, $ 11;62,22,3, 9,20,815,21
Acwals. Eludget
...................................... ............... ......................
Exp _,,dJAW rA--,,s 2022-23 2022-23 Varianc-e
Legislative
-------- 2�2
(D
Administration 482 881 46 1' 819,
................................ ...... 1 7-1-177- .......
0 Finance! '13, 1 58,645 3,413 905 255 260
...................... A—-1-�
1?:!!�6.639 2,353,597 110619,58
... ................. J
Human,Resc>uirces, 1.298,647 1,393,597 94,950
.... .... .................. .......... ....................
Techirtiolo COMMIUnicatio'n-s 3,79,0,,2818 3.984,042 193,754
0 Myniclip�al Cferk 517,716 57 1 0,1000 513.284
.........................
Fiscal Services31,681,253, 32,363.405 682,152
.............. ... ....... .......
(D Police Servio--es 27,039,973, 27.,870,130 83 '.157
Fire Services,Qpcl EMO) 19,33,21562, 18.642,740 f�1819,�.822)
64,067,8101 52 .9,27 051 _'(1 I�1 30,750)
.
inee ring& Publi�c Wrks o
..................
LL) Plan,nlng 3,,1066 14,68, 3,5 909 494,441
------------------------ ---- !- —
Faipiljtietre,2100&Arena ,193,882 3,496.797
arks&CD,rounds 3,469,669 3,210,874
3,648,953 3,489843
.................................... .......
ireation 2,623,,317 2.8,531,260 229.943
................ ............... ..........
172ZI 47Z $ 1,62,223,985 (9,192:3,8321,
---—-----------
Suirelu�,s, 110,#--ficit)IFFIZAM), ('715,:,,3 101
,Tax Revenue 2022/23Actuals 20221,23 Budgetl Variance
Revenues, ........... ........................................................ .........
I
on,Assessment I
............
Res
id,nfiall
79,893,619 7,9,0368,998 524,621
" , eT ax
..........
*FEW Commercial Tax 30,252,791 30,364,802 11 ,0111,
................. .......
tneeded Budget 1,497,338, 1499,7?� J2,457)
Resource Tax
1,506,680
1,506,680
Commercial Area,Rates(Are/Sewer-Bylaw,,
$91y20815211* Tbtal,Taxes,on Assessment 113
,15,01,428 112,740,275 410J53
-----------------
$21995,180
I Bell437,392 46101000 (23,1608)
...... .......
excluding'Filwila recovery WJ nd T ufbi ne 220,070 220,070 Deed Transfer Tax,
Deed Trans fer Tax 5,279,367 4,000,000 10279,36�7
............. ..........
Revenue 119,097,257
117,421,345 r1,665,912
LTLbta__ITIax
...............
Bud
...................... .......................... ...............
............................................................................................................................................................................... ..................... ............................ . .......2'-23 Variance
............
Rees niu e
----------------
Tbtal'Taxes 1�I T,4�2 1 345''''
Total IFederal Govemment 31,03,914T8 3,018 3 5,3 9,
............... ......... ......................
Total Federal GovernmePt Ag�'qqj.�es, 730415 8,54 3,111 11_
Total Pro,\Ancial Government 2 060 69,4 2,007,8 1 O 52,884,
otal PrmAncial Government A� 3� 17
��,,565'466-1
I . 8
rvices,to,Other Local Government -6, !979 909 28 6,8,14,
foiaJ se 11,26 723
ransit 2,10 9,90 1 2,100,000 9,90"t
....................... ..............
'i ' n'v'ironrnental Devellop ent Services 3136,8122 250l- 9 8,62
--- ........... 7 32
...............................
Total Uce:nses&Permits 13�7 494 11
1 6 1�0'00'
I 1-1111-1 _('t 315 06)
...........................................................11.............
"It 'ines&Fees 725,755 6 2,4 2 21 .........M'M
TotalRentals 582.,077 6 86
................ ............ 1I000
Total Con(cess,ions&Franchises944,789 702 000 24217819J
........ 1,§1�5.0 0,0 Includes,bank interest$725K
Total Interest
Total Finance Revenue 4,2760
.. ......................................
2,825,000 24
Total Sofid'Waste R,evenue
Toll Recreation,&Culfural Service!Pro rams 11041,179 1"11 a,5'00' 1773211),
P11
41951 510 4 951.5110
158�5 11 15 83�5,�§38 16,141
1 Uncondiflional Transfers
notal Conditional T'ransfers, 3!,536.576 ;��689,842 (�i 53,266),
rao� ven e R c 4, 16,2113,�3A 2,
Total Ext, 6,2 13 3 2
16,21122 3,'s 8's $ 9
Tota,I Rev'enue $ 171,43 601G 208,621
10
_i. Actuals '
E pendi urs 202 20,22-231 Variance...
$ „549,222 l$ 1,611,101% 61,794
r��inisir,dip�uru, X82,881 i 481,8191 w 1, )
Expend*tures,
_ _m ......... ....
Finance; JW 4 I 3,413,905 2,515,260
2,53,597 106, 58
main I ou � 1� 647 ... ... .. ,' 7 0,_
Over � � W
Technology minis nicali"I-1111......n� �; 3,x'90,288� 3,984,042 193,754
..
.........
Municipal Clerk$9 I , 1i 5,3,284
Fisca
Sermices 31,681,253 32,363,405 6,82J512
1,,,�...............1—"' 1. 111-11
Poli dem 7,0 ,7 2,8 0,,,,1 157
Fire Sem Qncl EI 1%332,562 18,64,2„7402"
. _ ....
1
���➢W Il1a.l�ln�i;vn�tm,
Ir.. 0 ._.:Public
_ ..
� 7,, 1
m. N„130, 5
A P! nib 3,066 68 560909 �444
1
... ..........4,193,882 �Facli :Centre 200&Arenas
�
_.
Park$ ground 3,459,569 i�0l 7 � �
__.
Buildings, �' 3,648,953� , , �. (159,1 q 0')i
Recreation 2,623,317 1 2,853,2160 229,1943
. ......... ,.,.,
T° t , it ur 112 11' q817s j ,, 3o9 9,1%
Department Actuals Budget Variance! aFianaInflatIon/other
Engineering,and Admin 5,1016,103, 5,206,584 10101,1101 �1 9 7) 1,001,298,
D Ms inail, pe rations p 23,902,371 '�P,A4'wA- ,d' ,A �,'N 16531,019) 14�P,,..
� �W N ��, ,N
Sollid Wasle, 17,971,465 r 14,4311,318 P,540,147) (2'29Q',614) (1,249,533)
Reet 5644,807 4, ,i (1,471,1
,' i...
Transit 7� ,&55,843 (1,021,674) (2311,262) (998,412
haste Mier 3,475,188 3,061,764, 413 4214),057,801 52,927,051 (11,130,750, ( �) (373,074)
r q
r ff I
�7f 1 pl Y I
J/
Y I
fi
(7,007,573) (4,123,177jj
OWN
w mei. mmm ,
Majo
rite,of departmients, replorted tower than expenses.
Engineering& Publ k taut l gni significant, i ed increases-in costs of
sterids and fuel due to, ill
imp
11
i
�.
f ,
...,,,. V?
Expen,ditures2022/23 2022/23 Variance
I
.... Benefits, mm. _.._.. .._ _ _
Wages Net Cost co .� I � Grants ® 5�� ' 72. 74,130.... r
1111,,.
_._
iu � Service Costs(includes d1111,,„
ac, ments/Professional Service 201,791,257 19
492x20 20,41 „56,01 _ 1 6
... ..... . .. �,
..
, t� i i 10,0871,243 10,276 394�'Jj
Water Ntaut�,,.,��n„ rant Fee
.1�e .... _ _.... 1111,,
im,m ..... .. .... ......... ....
Vehicle Maintena aid Fuel 8,238,840 5,817 00 2 4211 84
tb � l u� r� 9 t r� ��� lies/Tools/N' � � " t � „� 5, 5 , 3 0,
.,I " 1111., __......... _ „, .
w
Grants to
n
Heat" leis Water 2 949 1 1 968
� „m ,.....��_ .....__ __.... .... .... .. . ,,,1111,,..
-__.._.w�---... _ 1 1.„1111,, 1111,,.,,„ �,,,,,,,,
Street Li t ,355 685,.1 2, 551,500 1,85
nt /Riei ' t , ,
renl ,772085, 624,482 1471,603
_...�.. . .... _..... .... ... .. 1111 ..,, ......... ._ _.._� . .. .... ... _.
tt Ct r j !j� � � ��p t.... � "�,593,602 �� 1,� 54, 1151,81)—'-------------
..
Allowancefor Uncolleictible Taxes/IReceivables/DUP 221,,440 920000
Vo
.. _ . ... .,mmun ication .j. .....ent... ..... 789 ____.
Cost e 963„x"27 � ', 6 �
.,.,,, .,m,,,.�1111 . „n, ,w, .
ecyri'�s463 487,200 1 5
Traini Education/Travel/Conferences/Meeting, .......... 18,62,565
. .. ,., ..11.11,, , ,
Licenses/Permits)'Eas,lerne tits, 490,447 548,387 711940)
commu Event's.
�319158,6 33,50,00, 414
1111 1111,,.
Cost CL of
0,I
.. _w._m...._. _ _..
s1n /Promotion �� 325,7010
E Pos e/Courier 2,27,74,13, 236,150
..
Professional I q mrshl s/Fees/s S ' ions7� „837 � 19 2,37 4 . 2„537
..®Low I ncome Rebate � �, �1111.... ..... ............. .._�_ __ , ,
'1 x„216,928 ',2 ,
` Jll xbut r $172114708117 $162%22311,986 91923,832
:Oje ndjtuj*s(E�Xcluid �w e
Ni pN +Vi! IYM NI
12
..C Actual u c a
.............. .. __._.___. .
Expendiftures 2022123, 2021122 Variance
.v�. ., �,,,...,., _...o.... ....
Wages,and ein( �� Net Cost e /E �l rnept Grants 25 5,2 � , .�0 ,,, � 34 231
.......�_. _ m. .,.,.,,.. _. ... �.
... �,,,,,,,,,,,, e 1111. _� . � k.o,,
rract� w.... is Professional Service 2791 25,7 2 ,2 51 1 40.
Provincial Service Costs(includes,PV,S re92� 1 0 '
......
87243 1 142 X54 U ��
1111
' t+�uid�'Mi 10,0V243............. M,.. 1� P,................................................. .........�!1111 �.
N Utility Hydrant Fee �� 7e 7 �3 1.. �..... � � 1 ..... ......... .........
___..... _ ...
1
NVehicle Maintenance/ sur/ uI 1. 8238„� � 1 x, 7", 2 �I � 7 �,�1
„,, _ _ ...
E lui �q i t rjll S fi d'Tools/Uniforms/CI t i ,� � 55 505 � ,, 1 1 5381 15
Operational_...m._ , _ _ 1111. _w.... _ �..._.....�
._._Grants to
_..0 rizatnr .............. u , , m3, �,, 691-0,910
�..
�0,
017
7
......... ... vm........ �n2� � ",
all/W' ._.
.'
Street Iu 2 339,710 �,
� .� _..,.Lights, ....... �.. ........ �. .�
11
... .., 1.. . ..
I nur e 1� 2,615 � 1, � 1 g �� 6 1
.. r�_._ .._...
su /Corn r� ���� �� � �r�t � �1,5913�m 2 � 1,406,049, 11,875 53
. .. e.. .. ... .._� .. . ., 1111 . ... 1111 1111 1111 ... _.. ;.. ., .. .. _ 1111 .
... � _ � � � �llow for rcalledb � / u blies,DU
Telephone/Communication E uuprnient..... ....... 7891540 861x1.6 ..1.. 1I,62 �
Cosh Recovery
282
............ p 1
463,647' 5,8049,9
Training/Ed ucation/Travel/Conferences/Weetings n 5 5_ _., 0 ._�.. 1
963,
.�.. ,
' Licenses erm,its/E as,ler� t � � � � l �. � � 2 ,59
....1111.. .. ,,,,,,,
CNI
429
Community rub t 1111 .. . 111. 1 .. .r �.................
Cost' Sal 1� 1 265 2716,1111 i, � �X54 I
... 1111 1111 _1111. 1111.. � 1111. 1111 4,,
20
^ uruur ruuiur 1111 23 ,831' 21I , � 1 22a ,,.
01 . _...
211� ,9 �. 16,249" . Cuuue-,, � "� � ,,1' 16 „ 1 17,1121 emb rsh Dues/Fees/Subscriptions ,
Low Income , b t 729,70 10,8,x"73 935
1111 ... .. 1111 1111... .. ��. �.. 1111 1111 1111 .. .. �
..,. 7 1 2 �
28
m� a 1111 1111 1111 1111 1111 1111 � �..�,........ �._... 1111 1111 1111 1111 .. � 1111 1111 1111 1111 ._1.111.
Tota]Expenditures $172,147,817 1,, 690 �, i15,548,1127`
150 599 '910 8 331, 199
ExpaOdftur'os(ExcluidingH a,;) 16
I
13
��//���,,,, ,, ✓ iii ////�/
J
P"resel", tat,
Co u nc i
Step l Classify,'department revenuesl�si i lic�I source, and expend iture ygovernmentfunction
/
� 1,
� i
/
c,,, � /
/ /i „
i
/
/
1
Transportation
'Iw('00Services (�
oa
im ,uGeinetal Tr
ansit
1; rl
tri l
$n r s:t Allocations(~short term/long" term
ME I
/.
✓/ir< / //a ,/ / /iii% /r//%/ /
.
lin r t Allocations short,term/long termEnvironmental
-*Assess,rnent Services, Health
nterest Alloca
l (shoe term/longterm)
Elam ,.
FNM
/
r
J
r
Protective Flu'sr � Recreation,
Culture -Theat"
IInspielction,ServicesParks Gr n
nterest Allor- ion s('short rr 'l nterm) Interest Allocations(short rrn l rrterm)
�Public Health
jQ r /
and Welfare
Environmental
........ ............
il�//4111�11/11�,-,,,"a
,,
M,
gg
Development 1r Tri, w� N � ��
Services
14
Pr�ii qIN Upej,"
�/ "') r"Al c %IYi I;,1 purro�,a' . PSAB
FRA �
d
I'lf" iiion
�uu n I p
Step , Report annual surplus as,transfer to operatinges,er .
. Operating,
surplus,
� tjl loin scat
Financing,&Transfers--1119,
T ',rstolfrom S erre Fund
-,krransfersto Ca,pitialFund,
rr
a
Ile.J-Dass Road
Contribution
2,0273 20,22
Annual Surplus,Councill Format (71S,,389) 160,2410374
rplus transferoperating reserve 7 151389 (16x2411374)
Annum-Surplus,FRS
)111
l" 1I11+�1I1+,111�,11�ii�1/���r � Ulod bnlvwiq�qow ivid rmqd,, my
,
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ai PBf "
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FRAM
P ion
" , �
.,, resentat
Legislative Requi
There is no, acceptable sub i to dor "generally accepted accounting principl
HloweverF s,tnce the applicationsuch principles, will not always produce the
requirements of'particuliar l s, tion it may be nI c s , � latter
specially e il statements and reports.
mum'�murrsremmi�uuuuum�uuuuuuuuuuuuuuu�m�uum���mm i �y �amu�iw�ummlmmmm�umuuuuuu m _aw�mur� uuuum���i��i��mmi�im�mmmmimmimm
WAT
ER UTILITYARB)
CIBRM(FRAM) Capital eons
Accrueddebenture,tnterest P,SAB,,-. Reported as, revenue when
CVicationand sick benefit accrual received
N'EW ARO Standard(Asset Retirement obfigation) UARB: Deferred and amortized on the
eeu,obligation
basis of the funded asset
PSAB: Meets 14
definition liability Depreciationtl
must be accrued. PSAB: Expense,
FRAM: Not required under legislation
UARB'- tireReserve
,
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CBR.M
�� /rr- yr`�1, fP r l�1P'i�1)
I �i 1, ��i��f i�f` ��%�' '�y�yi ri Hr/p�/�t,�r���.i/pi� Jl.:� /r :,���/�„/U1 'bra �Ji/ai/ni �i,�� ��j(e&�;ilr�f�rl�& fJt��� wi/ „��uM 1 ,i�.�i�,�z.,;. 1j . FRAM
;( r �!h
r ,.,q
Step 3: Adjust accruals recognized under, PSAB.
2023, 2022 Cape Breton Regional Municipality
5:3 .Si hange In Fund Balance
Decrease(increase), ��'in accrued,,,,,,,o ��l�ut �. 560294 281 (1,72�� 19))
e� �� �� , 20,23 2022,
(increase) 75313,38
ainterest
�,�,.m,,...
REVENUES
Dec rea se P ncrea s e)a n accrued pick be nefits � ( „„ ' ,1 )� 55,470 T 1r19,087V 257 118,064,10;
.., Grants in lou of a 5
Decrease( re , )inaccrued vacation entitlemem, 2,540,1,6 (154,148)' ar as,rwovidedtooa ert mfp�,nh 1,145,521 r01
Was of suvices 4,177,309, 179„5'
R v nwce froml Own wurcas 11 876,533 11;,211,569
x- rwlcom5g15amR tiansfus Own othet
HA 571140p293, (1,073
LGE IN FUND BALANCE(PSAB') 159,
ftmal man'm Rom ftr govIe'li'�il en 4,50%846 4160,247
17-2, 3,02-13 176;746271
PSAB,WIND BALANCE COMPRISED OF: , EXPENSES
,,,,nm,. ., rl 1
govemil w wl�; i� , 1'5,95„01!5 '15,2,24,793
1
� 281) Transpodabon soMmi 41,239,284 35,242,511
Deficit
_ 54.704,383 53,053,516� Public MO ua and w ohne s ml X97 I21569 ,12�N01
�Wlifu
Eptiv
dewelopilenl services I,,228,57R 1,1511,472
�Sll �nefit accrual � (2 0 75 2'910 ......__ ...__ ( �, 87) Recfea,6 pa villw l c 11i,�C�9w5d�r 9.752,6 91
15,28209
�Vacatlon accrual�m (50,1121743) 1 lb067 151,121,354
f,� 5 � 1 9�� r FI
hC1 AND TRAM FE
Deblentate and lefm Wan pfindpall
"I'Fanslef Jo special mseue,funds, 3,589,20D (16,8211,M)
������ ��i ,�:d�
������ -� (1,85Z912)(1,85Z912)�,� �u
���general
��1.'S71�
j 75�,� �a .��,� t'� ��;
Jill,/ /✓/ �,,, ,/ ,. :,; ,,,>„I, r ,, ,, � r�,i i �-„i/
/
CHANGE IN PURD BALANCE (. ,
159)
WND aALANCE,BEGINNING OF YEAR (6 1 1) (60 717,652)
ii%/ % % /% ��� ,/ �1 l / / ✓ //iii/
6, 1q,
17
Cape B' 'reton iMuniapial*ty�a P
CBRM 11 s Capital fund, represents the Munl,,ci*pa,1,11,ty's 'i'nviesiti-nents in capital,,, assets.,
fund l nc increases for ' all iu
Grants receivedor capita] projects,, such as ICIP,ICIand other, si un ing contributions,
Monies transferred from our own funds,such, as capital out of operating, x reserves,, capital
reserves.,
Repayment of debentures.
As ARO obligations ionare no longer uu i ip l responsibility(ie,. Sale of property to a 3rd party).
The fund decreases for depreciation, as well as the addition, of any newlye ni asset retirement
obligations unrthe new accounting,standard.
"l is,Year's results were impacted y the transition to the, newnda , particularly the recognition
the liability for landfill closures that,was previously recognized in the operati'ng fund.
18
Cape r n Regional n ci ity
Capital, Fund
B eto
Cape Breton Regional Municipality, Contributionsfrom Provincial and Federal
191,55 Schedule of Capital Fund and Change in Fund Balance Governments
For the year ended March 3 f,2023
(Unaud4ed) $14.21VI-ICIP(Wastewater)
$23M Charlotte St.Redevelopment
2.0123 2022
$454K Hawks Dream Field
Conti
n
REVENUES F $425K-PTiA,P/ATA,P,(,Tl ransit)
Capital gra,nis $ 18,220,�2:93 3, 14,,463,770
Gain on disposal olassets 4,250,000 $3011OK-WD,equipment
18,22011,293, 18,713,770 0200, of facilities
EXPENSES
Generall government servicas 945,0,54 2781932,
ProtecMe services 1,571,670 1113B5,808,
Tfansportaton services 13,7 18,,018,4 8,948,11,090 Depreciation of"assets&inifial recognition of
Environmental health services 33,747,977 3,084,859 ARO and Liabilities
Recr:eaflon,and,witural services 1,,,6611,250, 1,1,805,1,814
Planning development ser,vices 762,,2'37 736,471
52,415,272 16,239,994
ExCWS701re'v—endes over,expen seS before the follovAng (314,'1,94,7 ,776,
Tr a n sfe r fro,rn ga si tax
FINANCING AND TRAN SFER S,
T'7
nwwA
sn'mnm
'e mmm'
r f
Transfer from�reserve funds 16,,963,,71,2 10,253,779 reserves,capital out of
's c
Transfer from genera I oplefafing ftind 0 r t
operafing,other,capital
Transfer fry water peg`1I kr nd 6:50,000 650,000,
Debent u,ire and!term, 11ban principal I nstalm ents 7,96, 2169 r
5 res�erves,
20,72-1,9160
-CM14GE IN FUND BALANCE MOT (8�,074,8 ) 23,195,J31
F U N D BALAKC E,BEGI N NJ NG OFYEAR 291,696,59,9, 268,500,853
Debt Repayments during fiscal year
FUS ND BALANCE,END OF YEAR 2:83,621,765 $ 291,696,5,89
19
reton n n Municipaii
Capital,, Funding, & Debts
............
Budgete,d Cape Breton Regional Municipality
CORNI Capital Pry grm 2,022/23 Budgetcost, Funding Borrowing Borrowing varIVIC "pg.41,18,, 0 Schedule of Long,'Wm D;bt
........yOk"AA1,51�,PMRMWMM .......... ...... lfk........ ch 31',2023
kv L�e year ended Mar
1and and buId ings, 4,363,900 3,,1. $ 224,71S i$ 1,294,759 30373, (2,0,)9,J4J)1 T er m Interesl Balance Balance.
......................................................... . ........ .1.................___ (y,ea�rs), rate-% Malures, March 3V22 Nsued Redearnfad Marich,31123
Centre 2,00 Revi tal i zation S,476,295 �i 10,4600,34S (1,460,345)
........................................................ General Fund
Fire E uipment,]A,paratus 0538 11,8%219, 791,,WO 1,077,219 IIAY,C,
�q P 791,000 2,167,758 299
............._,",............................... ......... 32-8-11 tO G 000-3,160, 2,023 379,700 3,79,700 -
9SI,326 2v58704,80 (,10636,1 33-B-1 10, 10,000-3,614 2:023, 936 534 468269 468,265,
34-B-1 10 1,2001190 2024 31,990,000 '1,330,000 1,660,1000
1Streets and Sidle,walk s 13,,645,350111,570,426 10fi,19,100,
.......... .............. 35-A-1 10-20 1.040-3.449 2030 2,1840,000 561ADIDO 21.2,00,000
9.48,)
Meet Replacement 1,5Wi,WO, 655, 1 777,111 87815,70 8,50,00o 24,570, 36-A-1 10 1,150-z.. 506 20216 1�122,000, 621*400 2,497,600
.................. 37-A71 10, 1.7,14,-3.073 20,27 4,96.400 827ADO 4,137,000
38,471 10 2.490-3,189 2028 8,382,499 1,197,5M, 7,184,999
Write fter tormViater 3S,,99,7'740 220128969 14J91,220 3" 749 70,685,j587 25�,,162 FCW11 10, 2.250 �2023 7001.000 100,0001 600,0010
39-A-4 I 015-2,561 2029 8,200,000 1,025,000 7,175,000
Plarks,Gr mm and Arenas 920,W0 2,073,693, 1,3121,607 75,,I 40-A-112.376 2031 8;,808JA0 8W,1814 7,92,7,326
086 425100w 3130�0 41-A-I 10 0,500-2 259 210,31, 11,133,600 1011360 10,020,2401
............
42-8.1 10 x,847-x.177' 2032 7,593,205,
53,456,873 7,593,205, 8,5016,443,� N_,5 4 fi&3 5,
Active Transpolation
............ ............
Tramilt1,7250,wo 21791,107 S13P700, 2,2771,407 9(6j,300 3,371,107
.............. Lon;;Term Debt,,,Ca #���'ects 2022123 2021/22,
Serke Defivery Modernizatibn I,OW,414 271�414 271414) ----- ...
Current Long Term Debt,Fh-,iancial Statements 52,543 6135 53,456,873
...................
Library 7500000, 2,000,oDOO (ZOoWQ)'
projects) �J, 59,E 20,5
Less,Muni[dpal C Top up 70flI.3 (7^013)
Short term borrowing(21/22 capital projects) 8,887,057 8,887,057
Total $72,91,91699 L, &A,000 4,26,8917 �.
$ 43,907,109 ..................
Short term bairrowing(22/23 capital:projects) 8 0 7 3,10,3
Debt,Repaid 81506,14,43
Balance,of Total D ebt 69,503�,719S 69,937 135
-New Debt $ 8,0731,103, ............. .......................
Changs Total Debt
Net I nicrease in Total Debt $ (433,1340)1� ................ 4i�,34 20,863,528
20
w mj
K --Oion m,u n,i cl i p ji
Cape B,r, n ro"eg,m' 1L A al*W
Rese
rve, Fu n d
CBRM's Reserve fund represents:
Prior year surpluses, reserved for operating or other special purpose
Capital grants received,, but not, yet spent
MOO,
Cape Breto,n Rieglo,nal MunlicilpallIfty,
P9,58, 0, 00 Schedule of Reserve Funds and Change in Fund Balance
Fbr tape year ended March 3 T.2023 Interest,earned during reporting period.
Wnaiuddedl,,, Sale of equipment and other property required"to be
placed in reserve,(MGA)
20,23,
Grants include advances on infrastructure funding,
REVENUES,
and federal gas tax allotment.
Investment income, 789,888, $ 112 3:29
,038
Sale of properfies 329,8,15, a44"ma
Grants 10,720,853, 31,822,124
i t,840.5,56 32.779,31X)l Transfers,from operating,fund include:
FINANCING ANO SES A Planned transfers$3.84M
lran,511e;fro operafing fund Cu rrent yea r def icit fu Ain g,-$715 K
Tran,,Oer to copital fund'
Unspent program f'unding,(sustainability,studies,etc)
anE
P
C
'f
'a
u
,e
,n
r
"s
n
re
I mm I
nsps,]etc)
E�1ect
............ Election reserver nsfe r
CHANGE IN FUND BALANCE, T x,sale Tex,,
sale surplus,andl annual 0200 CIFaIllocation
FUND 13ALANC5,BEGINNING OF YEAR' 211,,82,0
131,161,639 65 1-4 Transfer to capital fund is,gas tax spending and
FUND BALANCE$END OF YEAR: $ 152,455,263,=61,1167,6391 planned reserve spending f6r capital',projects,during
f isca,I year.
21
/r� IUUUUUU II
��IUuu411'l�oui6ill�Ivu � '"�
r
r i
e'
I
ilv, AMMON
owjr
CBRMI water
ty
n
'Oita and,
Operat,ing,,
CAPE BRETON Reserve Funds,
REGIONAL MUNICIPALlTY
Year 2023,
Ended
22
Water Utility Consolidated (UARB) CBRM Consoll tod (PSAB)
r
Cape Breton Regional Municipality Water,Utility Cape Breton Regional Municipality
CPlg#,63), PgI 54
Oo Statement of Financial AcHyMes-Operating Fund u0cowater Utillty0pera'ting Fund and Change In Fund Balance
�Rir the jm—ew ended Iftch,2 t 20,23 For mie ended March 31,2023
(Unaudvited)
M" 0
00111- 2,0123 2022' 2023 2022,
Silludg"01 Aduall Actual
cnaudded) OPERATING REVENUES
OPERATING REVENUES metele'd smlesS, 14,3.22036 S 19,345,9101
lhtve,dsaJ�� S 19"218,619, 5, 19,322,036, 19,345,1910, Publ[c fits proldecton 7,07611391 7,1016,191
PLblefire P(ot"'em,an 7,016,391 7,1076,391 7,076,391, Consumer's interesi 760,912 6611,977
Commof"s inleml 350"000 7K932, 661,9T7 27,10,359 27,024,278
Servke comiections upoo 2310,,693 11 I'm
6,711,9119 11 27,399x052 271961074 OPERATING EXPENSES
Source of supply 502�819
OPERATING EXPENSES Power and PUMPIng 1,820"919 1,827,573
Soutce of Supply 5,37,541 502AII9 500,J12 Watef Vealment 4,1967,373 4,5061,364
Power and pumping 1,982,563 1,82011919 tV7V3 Transm,isslon and dislobutoin 4, 939 4,132,811
Water Ireatment 4,,899272 4,967,373 4,506,364 AdminIsliaHim and!geinefal 3,2,06,353 2,856,054
Transmission and disiftution 912,363 5,156"9391 5382,871 Taxes 111,916,230 111,1987,221
Apmal Mll Aftinl0alflon arW geneirial 1161101 3,106,353 2,856,054 16,900,,633 16,4 10,1,94
boo 3,A501,1000 3,706,904 3,729"115
Taxes 2,0401,,806 1,896,230 1,937,221 Excess of fevenues ovevexlpkep!�es befte Me f oillowing 10,267,7216, 10 T4,0
21,584,550 21,2573,17 20,789,310
NONLOPERATING RIEVENUES
Eicess expimses Miscellaneow 2301,493 111,796
lbelofe I'lle lol""'WMN 6,40,6364
NOWOPE RATING EXPEN S E S
W HON-OPERATING REVENUES Inferesi,on debentures 1,041,977 1,016,5,,8,42:
Amoiatabon al delerred,,capdal c4ninbutions 2198,504 Amc;IftaftIn ol debt discounts 241,539 32,545
other 25,16,05 24,151
NUM-OPERATING EXPENSES; Tran0pir,1,19��oaIer cap#al fund 8521AS4 Sfi,66,766
iDebl charges 650.0,00 650,000
PrIvoision for pfin,cipal Fepayment 1,504,500 3,564,500 1564,500
10 263,525, lD,43,913,04
Interest -.1,065,842 1,. 1„
1,065M2
0 Am,ocl,12,0on of idetpll dikoupts 37,1112 24,540, 32,545,
mi Bank fe*Vcharges 204,081 215,605, 24�151 -C—HANGE-fN IftiIIIANCE 1p 21-4,894) 346,576
+0
A owmwmj Caplial expendf[ures out of,opira#ons 1,250,000 1,2501,000 11,373,1152
6,111 e 3 6,0010550" FUND SALANCE,BE 1NHlNG,0F'YEA:A
M/M/1 IFUND BALANCE,,END Of YEAR S T 14%821 S 6,914,92'7
CHANGE IN FUND BALANCE 645076
53 3 191
ca
Chan In fund bailance(UARB) $533,3if i arenc between 2 repoirting models us in,
-Amort.Of Deferred Contributions, ( 298.504, how amortization of deferred, contribution of
M
Change, in Fund Balance(PSAB) $234,895 $2,98,11,504 is reported.
23
Cape 'Breton Regional M. 1,0ty
unijapa i
tBei
y, C hangeJ '"'U",
Water uti,1�1 in nd Bflance - Operating 'Fund
Pl 54
to uility Consolidated (UARB) CBRM Consolidated (PSAB)
.54)
0
P9.r54 Cape Breton Regional Murt cipal"
Schedule of Water Utility Operating Fund aind Change in, alance
23
Cape,Breton Regional Muddpality water,Utility For 0,0 year itmn Mamh,21,20,
Statem'rpt of Operating Fund Surplus,(Deficit) (UnaivChrad'),
FI March 31,2023 ... 2023 201,22
OPERATING,REVENUE,$
2023 2022 mewed sia$es 5 19,312,036 S ig 345,9110
Publife(4v pudecto4i 7,076,391 7,076,391
Carmuirner"s Inn erest769,0 32 66$,,977
SUR PLUS(0EFICIT),BEGINN'NI OF YEAR, 5 2,631,979, 5, 1,986,,903, ........................ 27 168,359 27 63-4—2787
OPERA14MG EXPENSES
lsoiurce of supply 502,81�9, 51 00A$1
Change in fund balulce 5133,397 645,076 Pmrv'ar and purnping 1,820,9111, 1,827,573
Water treatnilent 4,967,373 4,506,,364
5
63L`l"979 Tf an,s,,miss ton and disInbuton 4"51W939 4,732,871 U RPtU S(DEFICIT),END OF YEAR, 3,155,376 2� A400W'alton and geneiral 31,206,353, 2,956,054
Taxts it,996,230 1,937,221
16,,900,633 16,00,194
Exjr-&ss,al mvenues avefexpen,"s before Ifte loglowung 10,,267,4726 10,6,74,034
NON.OPERATING AEVENUES
ell Mistislianeaus 2301,693 $11 39"Gi
Difference infund balance NOWOP E IRA T ING,EXPEN$E S
hiteire,sl oin 0ebail 110411,977' 4,,065,942
Amodgalgatt oil debl discourils 24,5391 32,545
dueto the act ountingtreat ment for Other 25,605 24�,151
Tranger to wale(caplal fan d 0,52 1,14,04 6,666,x61
Tfaimler to go�rsiecafcapilal fund 650,000 650"0001
previously recognized capital contributions,
10,263,525 10,439,,304
(PSAB), net,of accumulatedamortized C14ANGE IN FUND aALAINCE 234,804 TZ(f 3 7
contributions to,date (UARB). FUND SAIL,ANCE,l,BEGINNING Or WE AR 6,914,927
FUR 6 VA�ANCF,71E-WND Of.YEAR S 6:914,927
..........
24
Ca e Breton R,e, tona! Mun, icy
r 11,11 Change in, Fundncitale , Fund
Ut ty
Water Utility Consol i dateU R C -: R.::M Co sI l dated S i
I g,515 0 Cape Breton Regional Municipality
Statement of Investment In Capital!Assets
Pg,5
P91",[67 1 R�,Ine year ended MA xA 31,2,023 0 aof Watt Utility Capital Pund and Change I'n Fund Balance
F,'or the yearended Afarch 31,2023'
(Unau&fed)
2023 20221,
2023 2022:
BALANCE,BEGMNING,OF YEAR 91,,661,19127 5 66,724,275
REVENUES
C g
apflal,ranls
Um dett rjafired Total$4814500 3,564,500 3,5,54,,500,
Ca,,,Oftal oul of operabons , , 1250,,000 1,173„152, EXPENSES
3,73&304 IT29,115
BALANCE,F-ND OFYEAR 96,476,427 5 91,661,927 Defidiency of revenuF expenses b0are Me foltowing 3,736,304 (1,7219,115)
MIS F INANCING AND TRANSFERS
Tmnsfei,ft,om water opeia"Bng fund 8,,521,,404 Rfi%:765
Ca pita I Proj ects fu nded through depreciation rese rve
a
'it
4jS5,100 4,937,65-1
0 FNO New,Debt,however-217-A-1,refinanced for final 5 year, CHANGE IN FUND BALANCE
t FUND BALANCE,BEGINNING OF YEAR 1015,57,,631 96,619,980
'term.
0 D t
b�t Balance$183712 5010
e 9 F00'ALA NCE,END OF YEAR 3 110,1,557,631
Cape Breton Regional Municipalfty Water Utility
Schedute(13-Capital Debt& Charlyn
0
CFdr Pg'.74 Otis yea?@,&dd Moa'A 11,
Ralaftco RVance Charige in fund balanlces equal under each standard in
ale 101 Maturlty 1111ereMatch 31,, MAhrth 31,
0, aide Rat#%, 2072 Issued Reuvvmed 2073
....... 20,22. For 2023,thie difference between the change in
fund balances under each standaird,is due to,the
'C'
[2
f'O'�
u ni
r, c(
V'-A-1 2007 2022 4,745 4770 S 5.407'.000 S 3: IS 437,01,00 S - recognition and amiortization,of ARO assets,and"flabilit.ies
2ff1-A-r'$ 200!9 2.023 4 9410-$030 lmi�60 4,200,000
30-A-1 2010 �20,25 4,500-41575: 6,750,0100 750,000 61 0010 000 fob
r
3,1-,raw-'1 2013 2023 2,44-2979 1'6010"0010 61010,10DO 800,000 for,water tianks.
,34,�A1 2014 2029 2 51165-1792 3.2 ,0 4,00-000 2,800,000
,Z 5�75-�3 290 19
42-A-1 2022 20,27 M'.010,
S, 2�I�921 9dN
0=3 TZ—Tdff�-�
25
tona unicipai
eto
Wa,tl e r Utl 1,i hn n Fund Balance Reserve Fund
Water Utill�ity Consolidated (UARB) CBRM Consolidated (PISAB)
e4lona
Cape Breton Regional Municipality Wat,er Utility
Cape Breton Regional Munlclpalq,
00 ,
g",69 00 " Stattem&nt of'Special IReservie
'Of, Utility Reserve Funds and C
For the year end6dMarch 311,202 3 dge Water I han in Fund Balance
C For the year O 31,2023'
20,23 2022 ftJPaudged)
Non-shweable Future Watershed Sysco 20213 2"022
debt capital land waterfine
qzp
accliulsillon maintenance Total
REVENUES
BALANCE,,, Investment income S 4�3,67 (242)
BEGINNING
OFYEAR $ 55,368 936,695 $ 33,9a 716,245, 2,047,934 Z0,48.176 CHANGE IN FUND,BALANCE 4,357 (242)
interest on
Investments, 175 2,971, 1 A2122 - 4,363 (242) FUND BALANCE)BEGINNING OF YEAR 2,047,934 2, ,17
BALANI CE,END FUND HALANCE11 END OF' S'YEAR 2,052,101 $ 2,047,934
OF YEAR 55543, 939,666 $ 140,848 716,24�$=2_052,31�0)13,2,047,934
Operating results and fund balances
s ij
coonsistent under both sets,olf standards.
26
Cape Breton Regional Municipality
Schedule f Port, f Sydney Development Corporation ratanFund and
Change Irt Fund Balancle
For the year anded March 31;20,23 10
01
fUnaiuddft
rWOMMM,
Budget i1 2 2022-1
( Vi )
REVENUES
Wharfage and beriftage $ 650,043 $ 596,742 $ 4 27,711
Passenger tax, 785,623 67 97
Events, , 51 b °1,76'
Security 1 ,,,64' 27'9,710 u7`'
Storage and rental 241 4 255,864 144,30 The, Port ' y FIs
10L Craft miarket 3�LL Sundry 6,473
m
500 35,945 13,557 accountable to the CBRI'M for
lbb � rwver ment,I6rw sir g 10,000 144,177 7�1,710
2,045,075 2,446,049 1,074,8he administration of their
EXPENSES financial affairs resources,
Advertislng,and r ,1i,�n 17J50 16,624 10,860,
Bad d6bl' 2,060 1,762 1,666 they,ark owned and
Duand fees; 23,540 79,226 6,66conMunicipality.
0 01 Insurance 56,800 68,094 52,070
Events 52.,600 1'3,562 14 �
I' Interes,I and bank.urges 3,870 5,212 3,990 As such,the PS,DC's,f inanicial
Mis" lce d u inMr tion 8,087' 12,0 92 8,167 results a.re consolidated with
ProlesN n.N fees 1,8281!,3811 129,013,
C Rentn, 52,320, 52,32 C s own funds to form the
Security 160,436 179,831 45,115 nsoliRepairs and maintenance 245,021 225,119, a ,�1
,7w7 1„1119 10,992 TravelCQ 223,085 17' Statements.
Wages,and benefits 1'6,83 4, 8151,895 613,0,59
1,6941,916 1„746„668 223,084
I
e` f r nue o expenses for www ouuuuuuuuuuuuuuuuuuum
LL the folloyeing, 35D,159 699,9181 148,284),
Arnorlizabon alcapdal a, n1s 1(400,010,0) ( 1,14 (3,63J72.)
N)n on dis posN of s5i1. 6„500
01 W�
: CHANGE IN FUND BALANCE' (4-9,6�')� 7,535 (6111„456)
FUND 13A NCE,BEGINNING F YEAR 4,012,078 „,629,6134
FUND BALANCE,,END UF-YEAR4,392,51'3, „0166678
27
u
Cape Breton Regional Municipality
119113 C ii t Statementof iw i l it itis
F&Meyeare e March 31,202J
„
�, '��- 212
i moi, r�e1
r
1r�, 1i4 �'IrTaxes $, 117,421,,345 5119,087,257 1 M ;
Cap,M' i FOndX,204,942
e l pro�'i too r Divan men 801, 1,145,521 901,142'
Reserve Fund Reserve i nd sagsof sem"cles 3,950µ 4,172,309 1,796,453
Revenue from'Ov eur °e 5,937,01 6075,028 6,260,959
Wicondhion,W Iflansfers kom other
e emmernl,e 15,835,818 15„851,579 31,175,895
Conddionsttransfers ftiom,often'f gow,emments 4,3521927 4,754,923 4.631,957
opilia glants28 941,146 46,285,894
1watef MIN tovenflue f9,634,61 0 20,,22,d91 29,119,1693,
Investment lrn omie 794,355 11 14102
Pod of Sydney Dewe ppme t I slion 2,045,,07:5 21,01P2 7143,0901
Gala,M sale Of propeAes311,33111 '9311
�rrd �e�er�l •' ,213,522
179,1633,15 220,191„ 4 244,432.F18
PEN S
General govemmefit smices 199621080 15,503,740,
I r'e1e Me semi es d9„322'515 49,,,1,98„6r 2 47,362,1953,
Tilanspolitillon seMces 39,678,,,273 56,957,968 44,190,6011
Environmental he lth sermes 19,293,39^+ (1,093,515) 219711,260
NiNk h,eadkll)and nrmHve serilices 21,575,632 2',1721,96, 2,3201;;,1
nwerrrrnelnt l development uarwius 1 39I`798 11226,578 1,351,72
ea11on and cuff rel se cee 11,754,237 131279,176 11558,525
Consolidated
Plan,ni n and evelop rd,auric 762,237' '736,471
ducaff!orrel sews ee 1'5,531,511' 15 534,623 15,93'„n93
Pod of SyeyDevelopment Corpor a n 1,69,'916 2.0 9,014
r tin Walter UM."y pers1+1, 3,17.3 15„75109, 154277,792'
Result Operating el Reserve r fo Digi
174,357,11611 1711„1 91 11
J cee e1(revenues ever expenses
M d Name571140F,293, (�r 0 �, (80,74341) 2341 4,78 1 , 374,535, w
before 1 1�9+,rno ,454,7 2 45,834,968, 66,,333,15 1
or14ze1i ofdd1 co irw1. ,135,112 1059 (9,1,w)
W n, k 1 w CHANGE 1 FUND-BALANCES U30-mm.� 5o,752Jd159 �;
FUND BALANCES,BEGINNING OF YEAR, X17456n11,9 7 339,369„901
,.�-. SvN,. -,,,i ,n�iiaigarnv�?iviniamenauviinii �
�.a 1rA 11..13 1,111"1 x.,1113 1 __ _.5... » 5 451,353,9i'95111,,, 7
���M�.;q .� (,50r 1 12831621,17 , ,„ 1, v,, 1 1 � 731 i 030 , � �, „ ,r�
( —,+�iir/n'ur lV/hlda7JJIRdA�',.
r� �u1p�!/G//ir�iJO�JrvdmnP�rW�
28
Ay'
eton ipla i,
Cape Br, Reg,'io�onal Munic*' 1'"t
Other Schedules
Cape Breton Regional MunIcIpality, Cape,Breton Regional Municipality
LPg.5,2
p1g. QhOdule of Re, uneration and Reportable Explenses of Council
P19. P9.5 0 Remunerabon and Repodable Expenses of'Senlor Staff
Fof the year ended March 3,f,,2023 Fcf,the,year,en&,d March 31,203
Annual Travel" Annual Repodable
'a rid RemurieraflOn Expenses: Senior Sla ff Remunefatim Expemes
D-Bruckschwalgef( 3 52,26 S 3,8198, D.Campblel-Ryan $ 110,384 $ 4,623
J.Edwardt(Depu,�,Maya) is, 54,728 $ 4,411 j.CaMlpbe'jj 11 ,806
L GTGreen5, 52,626, 5, 4,900 5 25,96 $ 3
S'Gillespie S 52,626 S K.Dumrag $ 94,652 $ 941
G,MacDonald 3 �5211,626 S 1.360 D.E'vely $, 1,2,5,96,1 $, 1,867
E.MacDonald $ 52,626 S 7340, D,Kacftafarias, $ 125,961 5, 1,344
W,MacDonald $ 23,574, 3, 4,241
®D.MacDonald S 52,62'6 S 7,814 1 1460nnon $ 1 1781,811A 51 9,1144
El.,WcMulrin,(Dep�-mlayol') S 55,717 5 7,949
k McDougall(Mayor) 3, 153,B48 $ 23,9111 ML RUU3 S 125,330 $ 3,613
D„0,*Quinn 52,626 5 2,305 FAL Seth 5 148,139 $ 8,451
S.Parsons S 52,626, 5, 2,94'O M,Ml sb $ 220,461, $ 10,071,
G"Paluch 5 5,,21,626 $ 3,344 R,Walsh S 164,647 $ 1,9115,
K"I.Tracey 5 521,626 5 4,429
;' uuuuuuuuuuuuuuuummuuuuuuuuuuuuuuuuuuuuumm�mim�mummmmmmm
5.2.2(e)Audit Committee,Policy:
'�c
FReview the overall reasonableness of',CAO,,Ma, r,wid Counditravel,anA
'YO 'cil
hospitality,expenses,,,
''s
Amounts,ailsso disclosed fur senio,r staff.
29
W ;I Ma I N'
2.0 1 1,reto,n
Cape B i n iityv
F A I w i, i o,n 't)
inancial' Cond'I'm
Indicator m 2022-23 21-22 - 2019- 2018-19,
Reliance on Government Transfers 15.1% 15.9%
Uncollected Taxes 14,4IS'IS% 14.8% �
i���
Year,ChangeiIn Tax %i �/ 7.8%
J '
Reliance on Single Business or Institution
Residential Tex Effort
,.,w �b a .., PON MINES
.. ,. �% �/���/� � 'v/ �l�' 1/,'� -;' � ✓ , �i� UJB J � �,� %/
Last Years
Years witAccuracy within,+or_5% 'in'the liast five years
Liquidity 13, 12
Operating rv , 12.7%
Service Cyst, 10.14% 10,3% ' , '',
Outsta nd i ng Operating Debi %�%�/ 1, /, �// ///;; �/ 311%
UndepredatedAssetsW
Combined Operating&Capital Reserves 3111,89%, 39.9%,
30
Cape, Breton 'Regll*onall� Muni I cipal'il"ty
ri Condition
'e y M
0
��ror;,;,r,��iUr�r�r�frfrfrurrnrlrtllUfiai»»»»»uot��t1�1�1»�i�i�i�i�am ,n,»»ra�tl���m�»i�rrtrrrurua�ai�iiiiraiirr�rmvr„,,,�r�oarrarra�iia ai�rr�i
Ell.
lim
IMM
rRellance on Gov"t Transfers; TWr7rument Trinsfers 21,5,93,231
Total ReVe,Mfle, 1.4344,031223,
f i'w c t I'M a In i c p„N i t Neu i s n 't d e pt"u''ri,q HI e I&iu o n,a mo c r
.... ,,, "a.. �,, ” k.,, .,r"i n� n n_, n ,a,... " .e ,:a,u d i.., - B:
i: � � .,,� .,rv, �,�u�,.�..,� �;.�. �I,� I. a rr,�,....I .. �,�,. c. �.i.. ,,,
Wu�u,�K,c.u�u,�I���wWw n."��Wro�.u���,���lu'w_��w._w�rl�buu�:N�u....�I n�����,��u�,�.�a"wrvlw�,u�Pr u.���la.w��ura:r���.wWu��.��,��."ol�w�..��.���u�m�..���"4f�� ��r����"'b ", ����
b W di g m IV a,
lecte Ta
i'vab I n e t of at W owra nce) li,6,332,75:7 -114 <.1 r, DID 2 F
Total Ti Billed
�: �W�w;w�"��^�lo��,a��u.pim-a�rtl�u��Ns�y,�� �� �GUN���ucuuw���i�u�wu�i@��,,uu�;��a_;`*r�.rG�W,,.a
r1l cl, "^J'm,i iu�u J..�'cl f t u'UI e cl,e od+w iIX�,���e w mll f ct w f��it I:.A H k`I th"e P 4.N U;:
Regional
Cape n u
Set y DMAijanFinanciall Condi
iit I n ral
wlr gra- r.
7qutV Fatal Current Assets 50,063,78:11-7
Total Current Liabliftles 30,�155,778
1FiiI Nres� u I t INin,duuu„tn<. S that rq-1n!P%A It,jnici, 3 Ii I"V dic�)e5
,,,„ re
id �i.,,. iQ lµ, w, 1 �..,u„N II E;III"G; Air.,.
�I v, i P V IU"G`��II w�,.9 G:.,M�„v_fll Sib U'�U k�7 � �,, IY�h E I U 0"V i�
Iuu��Nlr�uW�µ,flp Po������w�$r��u,���fl�.�.wiq�nlw...�.UP"ti Gw I
i/%/ %:i / ii Nlq
;,,
Operating Reseirve naerall"
Up-
Totalrtl ,o,IRr i//,, /%✓ " N n
Ear n irr+�ludiln debe,nt r'e�aa��w'ments)
I"I un Q"u�u a bA iQIla �n� �izv; set u.uffideI-uv't
._,:h �-,s"Z),Iae-��� wet fclI.F„, anr.uI'ed rnexN..iectc.I wubIuuae c�p,u�,s Funds� ���..h a� pmfl . ;,��r°�D ea d,N kr aSrisks„t
:
U"6U"'ncls'
„m
Die,bt Se rvi ce Cost Principal/Interw5t on LTO �,: , ,
Tbt,aI Own Source Rv+rmmr^r-vu
111'e tfl�In�uo�fi�:�11 w�Qk��u�Ir��.�.0 U��°mI°uN��A'����nll�u�,°ul�,.iluDiu�'�
Q n crQ UI un&M^k'n dl"p I i6""'d�f the'.f I e fli;Ii b II l�V n.u to!U IY�V•;'::'.r'"R`!�'a��dLUi.Ell!T�."P r r�':�V"u,ow�"W l nr%i"�Il e"v e l'sr t iV_�it'�l l�U�Ir i,,-'' °9 IW o�a i U!��,�0�w x°'.'�'/r t$�A�.,>1�U"VIS'.,'�'r
n
UI Irl C'IU U-,�as I Li c.11r 11'cIV'uv 9 n'"r 9.
Total Operating Debt 14,084,299
Outstanding Oprati ebt 10.7"'Ve 5541
Total NetTaxes:&PIILT ill „I a,rr. .n p .�"r n tN .t u
_w ,.�°„
..I.�...:. raw -�i-w<.-d.,a,m ,.�,V... i i rt i.� ;,I �.,..m,�� -';I`k QUI„.I,flfl.IV�.,�,n:tlil�'rw ��:m.,..fldrU.�1.���win..�d...bar r?,:°.'T�!�.�,: �-�TrrK.:,V!"wM°�II AIU"niN�',,,�I„u�,�.VIpIUY;..N,,:,AI.„„u��Wm fl W�."rU;p».�.:�I.k�"'III..N�"4II��,..�.��'!ITU::.,
1 u 7 I��r u.�hl.r p n.����IQ a u.,.� �In-.��n�c..��n I n a�m r.71 fl�u u u,IQ>µa.�9 ���,u � T Q u I� � � �u � �` I "�' �” °� N” 'I
two ��
t�Irrl a Nr'11 l l' �t! Assets � s
To't,all Gross Costof CapitaiAssets 646, .:: �. ,mw � � �� � 2��i�/�
T hI ue I,”A u i Ir m b i;u Ifl It N'e i S,ie)c”ucr°Ip f IIr r e N w i,r'w an
,.
„„ � .� r.,�useful .x „ � � � .;II I nr nulm�u„ u.ilu� >�u.uor>a �.Iu�1fl�0�.wu�I.°�_n.Ifn�.nla.u�nNm�...w,
I� o �� �� �d� „ c I �ry I u..,�o fl.�.IQ a rr�Q u�w�.,�n�u fl...0��uw�u,�_.,i.���I I u...u�,......�„ �.,�,�,p..
Qlmaw�4� n�.�.�"�°Vmr.�T.-au�fl����rr��Nu`n��r�.�Aw.�uu�Im�������Q�����Curo��awauuu�.u �.�QunV�4w��..mri�„�,�n�Nr..��,7_„��..un���I��.�..�fl.�.��e,�r�mp�,�� w��,,,.. � �� ua»
Total r"'u""Seve Grund balance m?',q, ,r 1,�`„v'” ' 1' 17/Y"'!';"
,� ��irr ReserveI� taurrt:rrr�' u.u>����,ta�� 4034� "°��: � �,„�., .��� ;%'�i//%%%/��✓'�'�,
"''Toluol oeratIn expenses(Incil De preclation) 164, 99,838
I"H e Nw^I)V r%i IV°:01 0!n a,IQ 14 t.y d fl.inr-';`,s n a p I to�hiave
� ¢m NImr �.�r,r.WoosW...uu;.f,hw„u Ir �IC�,Q,aw wa,.both� MI. _.'x .,'c.,It._d
W.
., - .. „rw,a IF�fl�.al�.µu..n;t T����n urs e%id-fl���In:�m l n°�n�JI'nn a'u,,A�n�u°I res,�u,���,
r � � > �, �,I o� .15rr a. �Ir�„n b r�a Ire T.��Ips.IW uv_�.�a_,�.�� �„��u w u,.F.T,h n._� ...
�,�II,!µ;�iU�V".:�II
-ess_���.�U`u.II.TI II�...II q Cf I(i'IU”��.T•-...n r III.�id�'�,.�k fl w.,..;�II T„�n,,,d„�:,ie�.fl- �a,,.A�IU 6 iG,,,�W�I���U�..'�,�VI..m'V�e i,.L%I V h �Q`Q"II A<I tl tli�A..��q�P.._��,.��U"'� _..w UI"a�',, 7'i ��' NIS` n� U,"'..w. � �.,.
.� II„N III�I w 1 w III)J w-","P,'��„�U;'�d'l°N/Ie��,�'�°"nn�m Ir�.�"",tib.?.�`"�,V°a'.;!�V I G U III T ty to,'-j cQ!d re
°
32
,
Cape, Breton Regional Municipality
Year Ended March 317 2023
"Crippled ppled and crazy, we hobble toward the, finish line,, pen in
hand.,
Sirl Hustvedt
"There is no finish line. When you reach, one goal, find a, new
one."
Chuck Norris
33
ap Breton Regions[ Municipality
C nsolidated Financial Statements
March 31, 2023
34
Cape Breton Regional Municipality
Consolidated Financial Statements
For the year ended March 31, 2023
Page
Management's Responsibility for the Consolidated Financial Statements..................................... . .....................1
Consolidated Staternent of Financial Positio ...................................................... ..................................................2
Consolidated Statement of Financial Activities.......................... .... .......,. ... ....................................................
Consolidated Statement of Change in Net debt.................... , .... ...............................................,..,...,.,..__....4
Consolidated Statement of Cash Flows............................. ..... ............ ., ....................................................
Notes to Consolidated Financial Statements........................ .................. ........... . ,, ,. .............................6
Consolidated Schedule of Long-term Debt................. ,.... , , . ................................. ................................... ..
22
Consolidated Schedule of Segment Disclosure...... ...... ........ ...... ............................. ................................
23
Schedule of Remuneration and Reportable Expens of Cou it an
Chief Administrative Officer..... .......................................... .....I...., ., . .....................................................
25
Schedule of Remuneration and Reportable E ses of Senior Sta .... ... .............. .. ..................................26
Supplemental Schedules
Schedule of Operating Fund and Change in nd la c ... ....... . . .........................................................
27
Schedule of Water Utility Operating F nd and Cha a in rid Balance.............. . . ..................................28
Schedule of Capital Fuad and an Fun Balance.. .... ................................................ . .. . ..........
29
Schedule of Water Utility Ca tai rid ars Ch e in un alance...........................................................30
Schedule of Port of Sydney velop t Co oration Operating Fund and
Changein Fuad Balance............... ........... ., ....................................................................., .. . .. .....31
Schedule of Reserve F nds and Cha in Bal oe..................................... .....................................
32
Schedule of Water ility eserve Fu an hange in Fund Balance................................................. .. ..
33
35
Manage a fs Responsibility for the Consolidated Financi 13 e e is
The accompanying consolidated financial statements th Cape Breton Regional Municipality (the
"t unicipallty") are the responsibii4 of the Municipality's anagerne nd have been prepared in compliance
with legislation, and in accordance with Canadian pub.c se t ecoun ' standards. A summary of the
significant accounting policies are described in Note 1 to nsoiidat nanoi aterents. The preparation
of financial statements necessarily involves the use of sti tes based on ria a is judgment, particularly
when transactions affecting the current accounting pe od c nnot be finalized rwrith ce alnty until future periods.
The Municipality's management maintains a sir ern f tote nal ontrols designed to provide reasonable
assurance that assets are safeguarded, transacts ns are o rly uthorl ed and recorded in compliance with
legislative and regulatory requirements, and rellab ' ancial i or ation is available on a timely basis for
preparation of the consolidated financial statements. se sy s are monitored and evaluated b
management.
The audit committee meets with manage e �t and the ex e 'ors to review the consolidated financial
statements and discuss any significant finan i l re 'nternai vont I matters prior to their approval of the
consolidated financial statements.
The consolidated financial statements have been au d by P LLP, independent external auditors appointed
by the Municipality. The accompanyn e Merit Au 'orsport outlines their responsibilities, the scope of
their examination and their opinion the nicip lit 's coo lidat financial statements.
Jennifer Campbell, Chief ina tal
36
Cape Breton Regional Municipality
Consolidated Statement of Financial Position
As at Marcor 31, 2023
2023 2022
FINANCIAL ASSETS
Cash and cash equivalents(note 3) $ 52}428,301 80,022,594
Taxes receivable(note 16,332,757 17,072,389
Accounts receivable(note 33,368,127 21,643,656
Due from trust fond - 737}817
102,629,185 119,476,46
FINANCIAL LIABILITIES
Accounts payable and accrued liabilities{rote 37,383}065 32,194,541
Due to trust funds 17,064 -
Deterred revenue 682,576 314#089
Accrued employee benefits 6,186,993 7,080,477
Solid waste management facilities liabilities 561294,281
Asset retirer ent obligation(note 7) 41,43 768 -
apital lease{note 8) ,232 44,949
Long-terra debt{note 9) 86,000,433 103}562}470
171,687,131 199,490,807
NET DEBT 69}067,946) (80,014,351
NON-FINANCIAL ASSETS
Tangible capital assets(note 10) 466#939,369 4567001,228
Work in progress 49$265,230 25,880,644
Properties acquired at tax sale 1,585,197 1,585}197
Inventory, prepaid expenses and ether 21632,146 2,159,269
520,421,942 485,626#338
FUND BALANCES note 1 $ 451,363,996 408,61 1,987
Contingencies(note *14
See accompanying notes to co fidat ncia
On behalf of the Cape Breton I Muni lity
Mayo
Cl rk
2
37
Cape Breton Regional Municipality
Consolidated Statement of Financial Activities
For the year ended March 3 , 2023
Budget 2023 2022
REVENUES
Takes $ 117,421,345 119,087,257 $ 113,064,143
Grants in lieu of takes 9,204}942 9,396,051 9,436,316
Services provided to other governments 801,140 1}145,521 801,142
Sales of services 3,950,500 4#172,309 1,796,453
Revenue from own sources 5,937,677 6,375,023 6,260,059
Unconditional transfers from other
governments 15, 5,8 3 15#351,979 31,175,396
Conditional transfers from other governments 4 52, 27 4$7547023 4}631,967
Capital grants 23,941,146 46,235$894
Water Utility revenue 9,6 19 20,322,661 20,119,633
Investment income - 794,255 112,102
Port of Sydney Development Corporation , 451075 2,3 872 7031090
Gain on sale of properties - 3 ,330 5$094,933
Disaster recovery � 6,213,522 -
79,1 16 220,191,954 244,482,178
E P iS S
General government services X62, 16,940,165 15,503,740
Protective services 49} 15 49,198,662 47}362,953
Transportation services 39,673#2 56,957,966 441190,601
Environmental health services 1 {1,093#616} 211978,260
Public health and welfare services 2,575}632 2,721,969 2,320,361
Environmental development services ,439 1,226,578 1,351,472
Recreation and cultural services 1 T7 ,237 13278}176 1145585525
Planning and development services - 762,237 736}471
Educational services 15, ,507 15,534,623 15,282,089
Port of Sydney Development C poration 694, 16 2507 ,014 1,586,256
Water Utility expenses 14, 73 16,753,009 16,277,792
1740, 1 ,421 174,357,336 178,149}020
Excess of revenues over expenses
before the following 4,464,742 45,534,068 66,333,158
NET FINANCING AND T NSFERS
Amortization of ben disc nt 135,112) (32,059) (91,072)
CHANGE IN FUNDA c 4#329,630 451752,009 867242,036
FUND BALANCES,BE I 1 F YE 405,611,937 339,369,901
FUND BALANCES,END OF YEAR 481,363#996 405T611,987
See accompanying notes to consolidated financial statements.
3
38
Cape Breton Regional Municipality
Consolidated Statement of Change in Net Debt
For the year ended March h 9, 2023
2023 2022
CHANGE IN FUND BALANCES 45,752,099 }242,086
Tangible capital assets
Acquisition of tangible capital assets (31,820,918) {45,265,735}
Proceeds on disposal of tangible capital assets 336,330 5,994,938
Amortization of tangible capital assets 20,582,777 201332,281
Gain on disposal of tangible capital assets (356,530) {5,094}935)
(19,935,141) {24,933}454)
Other non-financial assets
Decrease(increase) in work in progress 584,586) 6,534,360
Decrease(increase)in inventory, prepaid expense
and other 1577) 69,455
(23,857,463) 603,816
DECREASE IN NET DEBT 10,956,405 47}912,448
NET DEBT, BEGINNING F YEAR (80,014,351) (127,926,799)
NET DEBT,END OF YEAR (59,057,946) (50,014,351)
See accompanying notes to consolidated finan ' I st men
4
39
Cape Breton Regional Municipality
Consolidated Statement of Cash Flags
For the year ended March 31, 2023
2023 2022
CASH FLOWS FROM OPERATING ATI ACTIVITIES
Change in fund balances $ 45,752,009 $ 66,242,086
Items not involving cash
Amortization of tangible capital assets 20,882,777 20,832,281
Gain on disposal of tangible capital assets (336,330) (5,094,938)
Change in non-cash working capital
Takes receivable 739,632 (1,934,621)
Accounts receivable (12,224,471) (3,598x542)
Inventory,prepaid expenses and other (472,877) 69$456
Accounts payable and accrued liabilities and accrue inte est 5,688,524 3,035,607
Solid waste management facilities liability (58,294,281) 1,727,819
Deferred revenue 888,487 ,270)
Accrued employee benefits 893,484} 88,772
Asset retirement obligation 41, 788 -
,754 80,865,650
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease(increase)in due from trust fund 754,881 (748,635)
Issuance of long-term debt 12,165,705 19$941,740
Principal payments on long-term debt (30,727,742) 25,614,068)
Repayment of capital lease 127$11 68x03
(17,934,267) 6T486P999
CASH FLOWS FROM CAPITAL ACTIVITIES
Acquisition of tangible capital assets 1,252,52{4) (45,265,735)
Proceeds on disposal of tangible capital ass s 3381830 5,094,938
Decrease(increase)in work in progress (23,384,586) 61534,380
{54,300,780} (38,638,437)
INCREASE IN CASH AND CASA IV T27,594,2 ,72x24
CASH AND CASH E IVALE S, N Gi)rF�YIEAR80,022,594 39,280,880
CASH AND CASH EQUIVALIEENTLE2D OF Y A 52,428,301 80,022,594
SUPPLEMENTAL CASH LOV1
WWI
See accompanying notes to 0o idte Bial aternents.
5
40
Cape Breton Regional Municipality
Notes to Consolidated Financial Statements
For the year ended March 31, 2023
. CHANGE IN ACCOUNTING POLY
Effective April 1, 2022, the Municipality adopted PS 2 0 — Asset retirement obligations as set out in the
Canadian public sector accounting standards. The new accounting standard addresses the reporting of legal
or contractual obligations associated with the retirement of certain capital assets and replaces existing
standard PS 270—Solid waste Landfill Closure and Post-Closure Liability. In accordance with the transition
provision of PS2 ,the change in policy was adopted on t prospective basis as of April 1, 2022.
In accordance with this new standard, the Municipality h re cted the following adjustments as of April 1,
2022:
a A decrease to the solid waste manage nt d Ilabi i ' of$56,294,281 under the former
standard with an offsetting decrease t mental h sear expenses.
• An increase to asset retirement o liga i n of $41 627,954, an ' crease to tangible capital
assets of $6,323,835 for llablliti as agate wi assets still in use and an increase to
expenses of$35,304,119 for ass is w ar not onsidered to have a future useful life.
. SIGNIFICANT ACCOUNTING POLICIES
a Basis of presentation
These consolidated financial stat ents of the Cap e Nonal Municipality (the "Municipality"
have been prepared, in all materia Nmspe s, I cor n e th Canadian public sector accounting
standards.
{b) Basis of consolidation
These consolidated financl I statements eflect th sse , liabilities, revenues, expenses and changes
in fund balances of all f rids f the un cOak . Th unlclpalit r is comprised of all organizations,
committees and local b and accou able for the ad istration of their financial affairs and resources
to the Municipality an t are o ed controlled by the Municipality, Inter-fund and inter-corporate
balances and transactions hav en elt ated. The entities included are as follows:
• C peratin }capital an erve ds of a Cape Breton Regional Municipality
• perat' g, ital a sere tends o the Cape Breton Regional Municipality Water Utility
A Fort f Sy ey Developmen Cor oration
c Segment informa
The Cape Breton Regional 'ic'ipality ' a diversified entity that provides a wide range of services to
its residents. For management r ing purposes, the Municipality's operations and activities are
organized and reported by fund. This presentation is in accordance with the Provincial Financial
Reporting and Accounting Manual and was created for the purpose of recording specific activities to
attain certain objectives in accordance with special regulations, restrictions or limitations. Municipality
services are provided by departments and their activity is reported in these funds. The services
provided by these departments are as follows:
41
Cape Breton Regional Municipality
Notes to Consolidated Financial Statements
For the year ended Marcor 39, 2023
2. SIGNIFICANT NTI POLICIES(CONTINUED
c Segment information(continued)
General government services
This segment is responsible for the overall local government administration and delivery of public health
and welfare services. Its tasks include direction for Municipality services, such as planning,
engineering, finance, and information technology in a ere ce to the Municipal Government Act.
Port of Sydney Development rent or oration
This segment is responsible for the operations f th rt of ey, through its subsidiary Port of
Sydney Development Corporation.
Protective services
This segment is primarily responsible f r p roe, f r pr taction and bylaw administration for its
residents.
Transportation services
The Municipality is responsible for aintenance of ce loc roads, sidewalks and street lights
within its jurisdiction.
Environmental services
This segment is responsible for the main ance d operations of waste, surer and storrnwater
services provided to residen and r custo rs. tasks include the provision of waste collection,
recycling and composting rou com 'nation of i ow and contracted workforces.
Recreation and cultural etvi
This segment is respon ` e for ori ing and offering recreation opportunities and activities to the
Municipality's residents, sped 'ng in intaining and assisting recreational facilities within the
Municipality such parks, ar an ar-ies.
Planning and d eloptIfient se-Nicas
This seven is re sible for Ian use planning, issuance of development permits and approving
subdivision applic ns in rdanc wit the Municipal Planning Strategy.
Educational services
This segment is responsible for the ollection of education rates on behalf of the Province of Nova
Scotia.
Water Uti lily
This segment manages water treatment and distribution facilities and services within the Municipality
and includes activities such as plant operation and pumping, water treatment, transmission and
distribution.
7
42
Cape Breton Regional Municipality
Notes to Consolidated Financial Statements
For the year ended March 31, 2023
. SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)
d School boards
The assets, liabilities, taxation and other revenues and expenses with respect to the operations of the
school boards are not reflected in these consolidated financial statements as they are provincial
government entities.
School boards in Nora Scotia were created by the lir vine under provisions in the Education Act, and,
under provincial statute, every municipality is requi ed t make a mandatory contribution to its school
board. The mandatory contribution is set at the v lue of the ucation Rates set by the Province each
year, multiplied by the previous }rear's Uniform Ass srn The ding for this contribution to the
Cape Breton-victoria Regional School Board r overed by t unici sty by an area rate levied
on the assessed value of the taxable prope ars business occupancy ssments and is shown as
an expense on the consolidated statement fin cial a i ' ' s.
e Trust funds
Trust funds and their related operations a i t red the Municipality are not included in the
consolidated financial statements}but are reported se ate l Trust Funds financial statements.
(f) Fund accounting
The resources and operations of t Mu re comprise of the operating, capital and reserve
funds. Transfers between funds are eco ed as justments to the appropriate fund balance.
Supporting schedules to the consolidate financial taternents are included to show the financial
activities and change in the b each fon
g Basis of accounting
Revenues and expendZures. are re rded on the ac i_iai basis of accounting. The accrual basis of
accounting recognizesnues the are earned and measurable; expenditures are recognized as
they are incurred and measur as a ult of the receipt of goods or services and the creation of a
legal obligation top
h Cash and cash quiv eats
The Municip ity c id rs cash on an deposits held in backs net of outstanding cheques and
deposits and to rarer lira of credit nd verdraEfts as cosh and cash equivalents.
(i) Financial instruments
Initial measurement
Financial instruments are measured at fair value when issued or acquired. For financial instruments
subsequently measured at cost or amortized cost, fair value is adjusted by the mount of the related
financing fees and transaction costs. Transaction costs and financing fees relating to financial
Instruments that are measured subsequently at fair value are recognized in operations in the year in
which they are incurred.
Financial instruments consist of cash and cash equivalents, takes and other receivables, accounts
payables and accruals and long-term debt.
43
Cape Breton Regional Municipality
Notes to Consolidated Financial Statements
For the year ended March 31, 2023
. SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)
Subsequent measurement
At each reporting date, the Municipality measures its financial assets and liabilities at cost or amortized
cost(less impairment in the case of financial assets), except for investments,which must be measured
at fair value. The Municipality uses the effective interest rate method to amortize any premiums,
discounts, transaction fees and financing fees to the statement of revenues and expenses. The
financial instruments measured at amortized cost re sh and cash equivalents, tax and rates
receivable, other receivables, accounts payable an ac ued liabilities, other payables and long-tern
debt.
Impairment
For financial assets measured at cost or am i cost, the Muni ' liter r ularly assesses whether
there are any indications of impairment. if her is an indication of imps ent, and the Municipality
determines that there is a significant adve e c ange i the expected timing or amount of future cash
flows from the financial asset, it recogniz an i air nt f ss in the statement of operations. Any
reversals of previously recognized irnpaire sses recognized in operations in the year the
reversal occurs.
Unless otherwise noted, it is man ernent s at the cipality is not exposed to significant
interest or credit risks arising from i nciencs.
{i) Tangible capital assets
Tangible capital assets acquuir a ar aig atio ,on August 1, 1995 are reported in the statement
of financial position at cost et of accu lated am i ati . All tangible capital assets acquired prior to
amalgamation have bee wri n off. Th y are amo ' cl on a straight-line basis over their estimated
useful lives at the foliow' g r es:
Basis Rate
General Fund
BuildingsStraight-line 40 gears
Equipment Straight-line 5-10 years
Streets Straight-line 50 years
Sidewalks Straight-line 20 years
Traffic lights Straight-line 20}rears
Recreation facilities Straight-line -40 gears
Industrial parks Straight-line 40 gears
Waterfront development Straight-line 50 years
Wharf—Sydney Marine Terminal Straight-line 25 gears
Garbage collection and disposal Straight-line 25 years
Sewer collection and disposal Straight-line 50}rears
Vater fund
Structures and improvements Straight-line 75 gears
Equipment Straight-line - o years
Mains Straight-line 75 years
Services and otherStraight-line 50 years
Meters Straight-line 20 years
Hydrants Straight-line 50 Years
9
44
Cape Breton Regional Municipality
Notes to Consolidated Financial statements
For the year ended March 31, 2023
2. SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)
Basis Rate
Port of Sydney Development Corporation
Equipment and signs Declining balance 20-30%
Building Declining balance %
Compound Declining balance %
Exhibits dining balance 20%
Computer equipment eclining balance ora
full year's amortization is taken in the year of a uisi
Reserve funds
Certain amounts, as approved by Council o the unicipality, are set asi in reserve fonds for future
operating and capital purposes. Transfer to nd or ro reserves funds are an adjustment to the
respective fund when approved.
(fit) Government transfers
Government transfers are recognized in the consolida finance statements in the period in which
events giving rise to the transfer oc r, pr transfers a uthoried, any eligibility criteria have
been met, and reasonable a timat of tin punts can be ma
i Deferred revenue
Deferred revenue represents user charges} reps ent of takes, and other fees that have been
collected, for which the rel d servic have ye o be erfored. These amounts will be recognized
as revenue in the fiscal ye r th "ccs re perl:orm d.
(m) Taxation and related re nu
Property tax billings a eepared b the Municipality based on assessment rolls determined in
accordance with Province of Scott lslation. Tac rates are established annually by Council,
incorporating amo�s t bo ed bo ed oval s ices and the requisition made by the Province in
respect of edu tion Tax n rev es are recorded at the time tax billings are due.
Assessments d t related pr rty xes are subject to appeal. Tarn adjustments as a result of
appeals are r cord hen the resui of a appeal process are known. An allowance for unresolved
assessment app is ais ovided.
(n) Port of Sydney Developme orporatio revenue recognition
The Port of Sydney Development oration recognizes revenue from the commercial operations of
the Port of Sydney is recognized when the services are provided and the customer takes ownership and
assumes risk of loss, collection of the relevant receivable is probable, persuasive evidence of an
arrangement exists and the sales price is fined or determinable. Amounts received in advance of the
provision of services are recorded as deferred revenue.
Restricted contributions for the purchase of capital assets are recognized in the year in which the capital
assets have been purchased and all liabilities relating to the asset have been cleaned. Unrestricted
contributions are recognized as revenue when received or receivable if the amount to be received can
be reasonably estimated and collection is reasonably assured.
10
45
Cape Breton Regional Municipality
Notes to Consolidated Financial statements
For the year ended March 31, 2023
. SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)
o Employee future benefits
Employees of the Municipality participate in the Public Service Superannuation Plan ("P P"), a
contributory pension plan administered by the Pension Services Superannuation Plan Trustee
Incorporated, which provides pension benefits based on length of service and earnings. The
Municipality is not obligated for any unfunded liability, nor is the Municipality entitled to any surplus that
may arise in the PSSP. Employer contributions are re og . ed as an expense in the period.
(p) Use of estimates
The preparation of consolidated financial state nts onfor with Canadian generally accepted
accounting principles requires management to a stirnates d ass tions that affect the reported
amounts of assets, liabilities, the disclosure o con "nencies and the orte amounts of revenue and
expenses in the consolidated financial state eats nd ac or parrying notes.
Amortization is based on the estimated us ful li es of pita assets.
Takes, rates and other receivables are s d after valuation as to their collectability and an
appropriate allowance for doubtful accounts is provi where sidered necessary.
Asset retirement obligations are r cog upon as ties and estimates related to the
amount and timing of costs for futu rem nd site restora io
By their nature,these judgments are su ' ct t sur ent uncertainty,and the effect on the financial
statements of changes in such estimates a d assu tions in future gears could be material. These
estimates and assumptions a regi d perio ' ally d, as adjustments become necessary, they are
reported in excess of reve es exp ses in the ear in which they become known.
( Asset retirement obligat' n
liability for an asset r ' ent o iga' n is recognized at the best estimate of the amount required to
retire a tangible capital asset corm nt thereof) at the financial statement date when there is a
legal or contractu obligatio r the nicipa' to incur retirement costs in relation to a tangible
capital asset o co thereo the p transaction or event giving rise to the liability has
occurred, it is pec d that future ono is benefits will be given up, and a reasonable estimate of the
amount can ma he best esti to f the liability includes all costs directly attributable to asset
retirement activitie , ased infor atio available at Isar 31, 2023. The best estimate of an asset
retirement obligation into ates a res nt value technique, when the cash flows required to settle or
otherwise extinguish an asset re a obligation are expected to occur over extended future periods.
When a liability for an asset retirement obligation is initially recognized, a corresponding asset
retirement cost is capitalized to the carrying amount of the related tangible capital asset or component
thereof). The asset retirement cost is amortized over the useful life of the related asset. For asset
retirement obligations associated with tangible capital assets no longer in productive use, the
Municipality recognizes an expense of the same mount as the liability.
1'l
46
Cape Breton Regional Municipality
Notes to Consolidated Financial statements
For the year ended March 31, 2023
2. SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)
At each financial reporting date, the Municipality reviews the carrying amount of the liability. The
Municipality recognizes period-to-period changes to the liability due to the passage of time as accretion
expense. Changes to the liability arising from revisions to either the tinning, the amount of the original
estimate of undiscounted cash flows or the discount rate are recognized as an increase or decrease to
the carrying amount of the related tangible capital asset.
The Municipality continues to recognize the liabili u it it is settled or otherwise extinguished.
Disbursements nts made to settle the liability are deduc d fr m the reported liability when they are made.
12
47
Cape Breton Regional Municipality
Notes to Consolidated Financial Statements
For the year ended March 31, 2023
. CASH AND CASH EQUIVALENTS(CHE UES ISSUED IN EXCESS OF FUNDS ON DEPOSIT)
2023 2622
Operating funds $ 11,301,878 45,686}283
Deserves funds 741487 157 61,250,926
Capital funds (34,397,172) (27,639,589)
Port:of Sydney Development Corporation 1,036,438 730,974
52,428}301 $ 80,022}594
r TAXES RECEIVABLE
X23 2022
Gross taxes receivable, beginning of year 20,147,239 7,661,396
Current year's levy of property taxes 113,370,493 112,194,126
Subtotal 133517,778 129,855,522
Less
Current gear's collections 11353801421 110,150,733
Deduced taxes 729,799 108,773
Allowance 838,344 (551,264)
Gross takes receivable,end of year 13,569,394 20,147,280
Less
Allowance for uncollectible xes 2,236,547 3,0747891
1=1� \.
Taxes receivable, net $ 16,332,757 $ 17,072,389
. ACCOUNTS RECEIVABLE
2023 2022
Federal governm t $ 111259,662 $ 5,316,719
Provincial overnM- 10,689,564 5,332,467
Due from general public 2,556,766 2,212,053
Water rates receivable 102830X9 '10,671,319
35,336,323 23,432,563
Less allowance for doubtful accounts
Operating 598,638 8931573
Water rates 869,558 595,329
1,468,196 1788,907
$ 33,666,127 21,643,656
13
48
Cape Breton Regional Municipality
Notes to Consolidated Financial Statements
For the year ended March 31, 2023
. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
2023 2022
Trade accounts payable 27,743,971 21,869,497
Payroll and related 1;770,039 1,892}191
Accrued liabilities 5TO69,883 5,433,583
Tax sale trust 3,299}172 2x999,270
377883,065 32,194,541
. ASSES'RETIREMENT OBLIGATIONS
(a) Solid Waste Management Facilities Liabilities
The Nova Scotia Environmental Protection Act e fabli hed repLkllatory requirements for the closure and long-
term maintenance of landfill sites. A require nt o the A is t at the Municipality is required to plan and
provide closure and post closure rnaintenanc f their III Si s.
Within the former municipal units of the GBRM, there a six r former municipal landfills operated by
these units. The included Sydney landfill, County of Cape n Ian ill & incineration facility, Woodbine
landfill operated by the County of Cap Breton, o. II in e Bay, the Louisbourg landfill, New
Waterford landfill operated near Scotch wn other small sites in Dominion, Sydney Mines and
Glace Bay.
Two of the larger landfills, Sydney landfill and t No. landfill in Glace Bay were considered properly
closed in the1990 s, however,t ere are s' 4 some at rn 'or landfills and several small sites that require
varying degrees of monitoring nd/ clo re tivities as r e regulations.
Activities required for thes sit vary nd include but re not limited to groundwater monitoring, well
installation and monitoring, deline on, 'e security, landfill gas delineation, leachate quality monitoring
and possible treatment,ent, site cappin d gen site tidiness.
The assumed esti at cost for pro ,non 'ng, lanning, closure and post closure activities for these
sites is $35,374,959 hic have dis rated to the present value using a discount rate of 4.00% per
annum. The esti to i based on the is r hectare associated with the closure of the Sydney landfill
extrapolated over aining stares to be clos d, adjusted for inflationary considerations and discounted to
current values.
b Asbestos obligation
The Municipality owns and operates several buildings that were constructed prior to 1991 which have been
included under P 3 -Asset retirement obligations as it is unknown if asbestos is present. The uncertainty
could present a health hazard upon demolition of the building and there is a legal obligation to remove it.
Following the adoption of PS 3280, the Municipality recognized an obligation relating to the removal and
post-removal care of the asbestos in these buildings as estimated at March 31, 2023. The estimated cost
for removal of asbestos have been discounted to the present value using a discount rate of 4.00% per
annum. The transition and recognition of asset retirement obligations involved an accompanying increase to
the buildings capital asset carrying value.
14
49
Cape Breton Regional Municipality
Notes to Consolidated Financial Statements
For the year ended March 31, 2023
7. ASSET RETIREMENT OBLIGATIONS(CONTINUED)
c wharves
The municipality owns several wharves that fail within PS 3280. Upon retirement of these facilities,there i
an obligation to eliminate any environmental impact by removing and disposing of creosote treated lumber.
Estimated costs have been discounted to the present value using a discount rate of 4,00% per annurn. The
transition and recognition of asset retirement obligations involved an accompanying increase to the wharves
capital asset carrying value.
d Refrigerant
The municipality operates several facilities that fell wi ing 80. retirement of these facilities, here
is an obligation to eliminate any environmental irn by remo ' and ' using of ozone depleting
refrigerant materials. Estimated costs have been disc anted to the pree al using a discount rete of
4.00%per annum. The transition and recognitio of set re' rnent obligations involved an accompanying
increase to the buildings capital asset carrying slue
(e) Fuel tanks
The municipality owns and operates several buildings th ontain ove and underground tanks that fail
within PS 3280. Upon retirement of th 'ities, here is an lig ion to eiirninarte any environmental
impact and restore the land to its prix state. Estimated no een discounted to the present value
using a discount rate of 4.00% per annu . T trans ion re gnition of asset retirement obligations
involved an accompanying increase to the but `ngs 'itai set carrying value.
Changes to the asset retirement yafi the ye are follows:
2023
Opening balance $
Acquired upon adoption 411627x954
Accretion expense 52T813
Liabilities settled 9=999
$ 411430768
8. CAPITAL LEASE
2023 2022
Bank of Montreal,al,2. %, repaid during ear $ - 44$949
Bank of Montreal, 5.53%, repayable in monthly
installments of principal and interest of$10,720
commencing July 2022,maturing,dune,2027, secured
by equipment with a net book value of$470,036. 486,232 W
$ 486,232 $ 44,949
1
50
Cape Breton Regional Municipality
Notes to Consolidated Financial Statements
For the year ended!March 31, 2023
. CAPITAL LEASE(CONTINUED)
Minimum lease payments required in the next 5(five)years under capital lease are as follows:
Year ended March 31,
2624 128,642
2025 128;642
2025 128,642
2627 126542
2628 32$160
546P728
Interest included in minimum payments 60,496
486$232
. LONG-TERM DEBT
The schedule attached to the consolidated fi a i stetem is details the various terms and conditions
related to the long-terra debt.
Principal payments required in each of t ars on debt s at March 31, 2023 aro as follows:
2624 11 956,565
2025 10,482,295
2626 1259023295
2027 7,902,295
2028 7,277,895
16
51
Cape Breton Regional Municipality
Notes to Consolidated Financial Statements
For the year ended March 31,2023
10.TANGIBLE CAPITAL ASSETS,GENERAL CAPITAL
2023 2022
Cost Add€fioas Disposals Cost A o tizaOon
Beginning and and End !Bjntiing Amor€ization clef Book Net Book
of Year Trarrsrers W doe-downs of Year f Yeax Adc Knits Ouispposals. End of Year Value Value
Land S 14,077,203 185,142 S 14,262,345 . - $ -- S 14,262,345 14,077,203
Buildings ��..
General govemmentser�ees 9,733,954 617,672 - 18,051,826 �� 3,733,301 ���..�y26�,'363 - 3,994,664 6,356,962 6,089,853
protectwe services 18,959,407 349,588 - 19,309,0 2,834,838 4 ,449 - 3,323,288 45,985,718 16,124,566
Transportation services 11,441,645 192,547 11.634,1 2 ,F89 573 292,027 3,481.700 8,152,492 8,251,972
Environment:M services 33,238,344 22,630 33,260 74 ,441 388 831,525 13,277,913 19,983,661 2D,791,956
Recfeabon and witui-a3 services 29,271,865 28,041 29,29 906 7',�AD6 783,670 7,935,276 21,364,530 22,070,253
Indus#rial parks 4.084,104 -- 6,712 27,103 - 683,815 500,289 *527,392
Asset�ebrement afxl[pation - 699.727 699,727 - - 698,777 -
103,729,319 1.910,246 105,639,535 ,51 2,634,137 32,596,655 73,D42,879 73,766.800
Equipment
General govemment services 3,007.560 � - ,�,007�.6Q�._ 2,906,02' 33.179 - 2,941.203 66,357 99,536
Protective services 19,168,195 2,1+45,766 - 21,3�3,9� � 1; 1,685,221 - 18,462,749 2,951,204 1.70,667
Pabl[i waAs 45,640,219 4,116,777 - 50,756;896 / ,230,743 3,513,052 36.743,795 14,013,201 13,409,476
Environmental health services 13,850,293 15,272 13,885,476 �i 3,794,609 17,135 T 13,811,744 53,731 55,584
Recre"on and cuAural services 1,921,819 - ry 921,818'. 1.728,479 51,936 1,780,415 131,404 193,340
84,587.958 6,277,907 90,ft�JB03 6.39,383 4,710,523 T 73,749,905 17,115,697 15,548,613
Othef
General gayemment services 742,+494 - 742,494 742.494 - 742,494 -
Road Iransport 204,0!)5,551 9,146,321 131728;575 78,112,784 5,576,085 83,668,858 129.553,OD3 125,982,767
Environmental health services 111,695,546 +4.526,426 116,70.x,966 32,572,669 2,330,597 - 34.903,466 81,318,50D 79.122,677'
F acreation and cut rat services 24,968,333 573,496 - 5,547,E 23,424,961 871,471 - 24,296,432 1,251,397 1,543,372
Waterfront development 8,975,401 173,777 J419�M�� 4,471 A4 184,235 W 4,655.639 4,493,639 4,503,997
Downtown development 1,697,526 831,078 mm_ �2 528,r 4S D4,., 438,071 65,875 493,946 2,634.658 1,259,455
Wharf-Sydney hrSarine Terminal 22,253,548 - 22,251
mm y' 5 1.977.578 495,024 2,+472,702 19.799.844 20,275,866
� �
Wafer Utility assets 180,701,268 2,824,975 f - .)53.6261 44 65,253,819 3.706.905 68,960.724 114,665,520 315.447.449
Port of Sydney Development
Go€paration assets 11,190,594 249,915 41 4D,09 6,717,667 317,925 7,035,592 4,405,017 4.473,027
Asset fefimment obligafion-landfill - 5,fl15,770 .015 70 -- - - 5,015,770 -
566,320,358 23,447,753 589,76,112 213,711,747 13,539,117 X27,249,864 362,518,240 352,808,612
768,714,877 5 31,820,918 $ mm S 880,22,499 312,713,649 S 20,887,777 $ T $333,596,426 *406,939.369 S 456,041,228
52
Cape Breton Regional Municipality
Notes to Consolidated Financial Statements
For the year ended March 39, 2023
11. FUND BALANCES
2023 2022
General operating fund (4,650,518) $ (61,790,811)
Water operating fund 7,149,821 ,914#927
General capital fund 288,621,765 291,696,589
Water capital fund 106,3421731 101,557,681
Port of Sydney Development Corporation 4,392,613 4,01 8,078
398}858,412 342,398,414
Deserves set aside by council 4,507x584 83,215,578
1,996 $ 405,61'1,987
12. EMPLOYEE FUTURE BENEFITS
a Defined benefit plan
On January 26, 2018, the Municipality signed a transfer eernen ith Public Service Superannuation
Plan Trustee Incorporated ("PSSP I") to r ension to the PSSP, a contributory multi-
ernpioyer defined benefit pension n a red by the P PSI, vwnccl provides pension benefits
based on length of service and earni or t thi , t e unicipality Pension Plan was a defined
benefit pension plan covering substantially l of i em lcyees.
The PSSP is accounted for 16 a defi contrib n p as the obligation to pay retirement obligations
does not reside with the nisi
Contributions to the P n e req red y both the employer and its employees. Total employer
contributions for 2028 re $4, 40 2,753) and are recognized as an expense in the
period.
b Defined Contributi Plan
The Cape Bret Re ionai un' ality Iso provides a defined contribution pension plan. Members of
this plan and emp ees of the for er unicipalifies prior to amalgamation in 1995 and part time
employees to ' h com cry me ers ip is not directed to the CBRM DB Plan. The contribution
rate is funded equally.
The contributions for 2023 were 'l3 ,872(2022-$149,024 .
c Municipal clerks' pension
The Municipality is required, under provisions of the Municipal Government Act of the Province of Nova
Scotia, to provide a non-contributory defined pension plan for Municipal Clercs in respect of years of
service to March 31, 1998.
The liability will be periodically adjusted based on triennial actuarial valuation and differences, if any,
between the actuarially determined liability and the liability as otherwise determined. This adjustment
will be charged to future operations.
Based on the 2013 valuation,the Municipality had a plan surplus of$59,000 on a going concern basis.
18
53
Cape Breton Regional Municipality
Notes to Consolidated Financial Statements
For the year ended March 31, 2023
12= EMPLOYEE FUTURE BENEFITS(CONTINUED)
d Other
The Municipality directly provides pension arrangements in respect of former employees. The cost of
such pensions for 2023 was$188,157(2022-$181,631).
1 . MISCELLANEOUS TRUST FUNDS
S
Miscellaneous Trust Funds administered fired by the Muni ipality reported on separately. The total trust
assets under administration at March 31, 2023 are$5 17, 022-
14. CONTINGENCIES
a s of March 31, 2023, there are a nu er f clai ag inst the Municipality and its consolidated
entities in varying amounts and for which vision av been made in these financial statements as
appropriate. It is not possible to determine the ants may ultimately be assessed against the
Municipality with respect to these claims, but managem believ that any such mounts would not
have a material impact on the finan ial pose Municipa i .
b The Municipality is the plaintiff in ions roe Ings which have arisen, in the normal course of
carrying on its operations. It is net posy a at i tiro to determine the amounts the Municipality may
receive with respect to these claims.
c The Municipality has guara teed a num er of loa on b alf of various fire departments within GBRM.
The total amount out tan ing thes loa sat March ,2023 i $1,123,471 (2022-$1,155,548).
d The Municipality has g gran d w ding capital torr ing on behalf of Seaview Manor Corporation at
March 31,2023 up to$2 200P000).
e) Canadian Environme elines
Per regulations t fo Cana n Cou l of Ministers of the Environment(COME) and required
by the Nova roti Departmen f E ironrnent, the Municipality is currently in the process of
performing a ironrn I risk assess ent to meet necessary wastewater treatment guidelines. Upon
completion, the ti Me an stima d c st to meet these guidelines will be more definitive. The
Municipality has obtaine sition aut ori abons extending to 2040.
As at March 31, 2023,the ll unicipa j ` not in compliance with certain COME requirements.
1 . TRANSFERS TO PROVINCIAL BOARDS AND COMMISSIONS
(a) Cape Breton Island Housing Authority
The Municipality shared in the operations of the Authority for the year ended March 31, 2023 in the
mount of$2,534,623(2022-$2,136,004).
1
54
Cape Breton Regional Municipality
Notes to Consolidated Financial Statements
For the year ended March 31, 2023
15. TRANSFERS TO PROVINCIAL BOARDS AND COMMISSIONS(CONTINUED)
{b) Assessment Services :
The Municipality is required to pay a share of the cost of operating the provincial assessment system
based on the total provincial assessment cost times the average of the Municipality's share of the
Uniform Assessment and the Municipality's share of assessment accounts. For the year ended
March 31, 2023,the Municipality's share of these co as 1 t369,058(2022-$1,390,867).
c Correctional Services
Municipalities in Nova Scotia are required to ak a ma tory contribution to fund the cost of
correctional services. The contribution is set y ovind or ula. or the year ended March 31,
2023,the Municipality's contribution for thes is was$1,054# 2022- 1,065x580 ,
(d) The Cape Breton-Victoria Regional Centr for ucati
The Municipality provided a randa ry ntrib ion n the amount of $15,534,623 (2022 -
$15,282,089)to the Cape Breton-licton ionaE den e for Education.
16. PORT OF SYDNEY DEVELOPMENT C � QR ST
On,dune 17, 2014, Enterprise Cape Bre n C n, actingno be aif of the dredge oversight committee,
entered into an agreement with the Syd P s rpo too ow the Port of Sydney Development
Corporation) to transfer the remaining funds lar rs ut for specific purposes. The Fort of Sydney
Development Corporation drags Ah fund in c Alia a with the agreement.
As of March 31, 2023, $173,13 ( o 173, 4)is bei h d in trust.
17. FINANCIAL I S MS
a Fair values
The fair value the Municipali " finan in trurnents that are comprised of cash (cheques issued
in excess o fun on det es receivable, accounts receivable, short-term borrowings,
accounts p abl and accrued lia iiitie and accrued interest on long-terra debt approximate their
carrying vaiu a to t short-ter nat re.
The fair value of long- debt j ba d on rates currently available to the Municipality with similar
teras and maturities and appro ' at its carrying value.
(b) Credit risk
The Municipality is exposed to credit-related losses in the event residents and entities that the
Municipality provides services to are unable to fulfill their obligations. The large number of residents
and customers minimizes the credit risk.
20
55
Cape Breton Regional Municipality
Notes to Consolidated Financial Statements
For the year ended March 31, 2023
17. FINANCIAL INSTRUMENTS(CONTINUED)
0 interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. The Municipality's debentures are long term
with fined range of rates thereby mitigating its interest rate risk.
It is management's opinion that the Municipality is n t used to significant interest, market or credit
risks arising from these financial instruments.
On ,dune 1, 2023, the Municipality acquired tete d ed d related assets o orthside Community Civic
Centre for $1. in exchange, the Municipality as surne 11 operations, including present and future
obligations arising from the continued operatic of t faoilit
19. COMPARATIVE FIGURES
Certain 2022 comparative figures have een rec conform the financial statement presentation
adopted for the current year.
21
56
Cape Breton Regional Municipality
Schedule of Long-term Debt
For the year ended!March 31, 2023
Term Interest Balance Balance
(years) rate-% Matures March h 31/22 Issued Redeemed March 31123
General Fund
Q.F.C.
32-B-1 10 0.000.3.160 2023 379,700 379,700 -
33-B-1 10 0.000-3.614 2023 936,534 - 468,269 468,265
34-8-1 10 1.200-3.190 2024 3,990}000 - 1,330}040 2,660,000
3 -A-1 10-20 1.040-3. 4 2030 2,640,003 - 560,000 2,230, 00
36-A-1 10 1.150-2.505 2026 3,122,000 6241400 2,497,600
37-A-1 10 1.734-3.073 2027 4,964P400 327,400 45137$000
3 - -1 10 2.490-3.339 2028 3,332,499 1, 97,500 7,184,999
FC11 -1 10 2.250 2028 700300 1005000 600}000
39- -1 10 2.015-2.561 2029 8,2 0}0 , 25,000 7,175,000
40-A-1 10 0.400-2.376 2031 8,6 3 40 80,814 7,927,326
41-A-1 10 0.50 2,259 2031 11113 ,600 }1 13,360 10,020,240
42-B-1 10 3.847-4.177 2032 /'7_s 31295 - 7,593}205
53, 56,8 71 93205 8,506,443 52,543}635
M.F.C.
Promissory note
3 1.100 2024 8.168.597 14,084,299 14 7084,298
Water Fund
M.F.C.
27-A-1 15 4.3354.770 2023 5,4 00 5}437x000 µ
23-A-1 15 3.750-5.033 2 4;900,0 700,000 4,200,000
30-A-1 15 1.510-4.875 025 750,000 - 750,000 6,000,000
33-A-1 10 1.330-2.979 20 1, 00,000 - 8001000 800,000
34-A-1 15 1.245-3.792 2 9 3, 1 400,000 2,800,000
42-A-1 5 2.575-3.29 2 7 - 4,5723500 - 4,572,500
2 ,937,000 4,572,500 8T 137,000 18,372,500
562, '12,1 5705 30,727,742 5,000}433
2
57
Cape Breton Regional Municipality
Consolidated Schedule of Segment Disclosure
For the year ended Mo mh 31,X23
Segment repoftg is deslgned to assist users in ideating tt+e reswces alfocated to support Ilse major acWtias of the municipality and to be#ler undersWd the performance at Segrnents.
The€0weing suh edule provides segment information for the 2023 and 2022 fiscal years-Segment resub represent ft acWihes 0f tfe segment and are based on the same acco€rntirrg policies as descfted in the Significant Aicaurr6ng Pdicies as desscfibed in Note
1-The Municipality has daterrraned that the Wowing segments represent tha major ac&V es of government.
General Port of Sydney Recr/ato� Plax�nN and
Govemment QsvelvprnOf;t f�rotectiVe Transport2rton EnvironmentA art[t�uhUrr Devetapmant Educational
Year ended March 31.2#!23 Services CDrporaton Services Services Services efvic Gervices SeMces ~Nater Utility Total
REVENUE
Taxation S 77.043,160 - 18,432.369 S 6,077,1(35 S 5 .; - 15.534,6 3 - 178,OB7,257
GSFaas kn Neu of taxes 9,396,051 - _ ��� _ }��.� = - - 3,396,051
Services provided to other �4xJ
govamments - - 1,145,521 - ` 1,145,521
Sales of semces 75,446 - - 2,109,901 ` i,98s f 66 - 4,172,399
Revenue from own sources 3,243,042 2.301,872 724,649 2,849,7is. h 57,621 - - 9,176,900
Uroanditional transfers frorro
other governrt ntSL
Condftraat transfers from
other governments - 144,177 4,609,846 _ 4,754,023
Capu grants 9,222 - - 4.969,099 23.5 628,339��.� _ _ - 28,941,14E
Metered sales - - - - ..-,. � - 1#1,322,036 19,322,0
36
Ot)ef water revenues - _ - - ,� i T 1,000,6251,000,625
94,255
Investment income 794255 - - -
Gain on sale of prapemes 329,830 8,500 - - �,� k�; - - 336,330
Disaster imarrcGal assistance 6,213,522 - - ` � ` - - - 8,213,522
112,957,501 2,452,549 24,812.385 15,156,105 �2§16-3 202 2,6 5,307 57,621 15,834,823 20,322,561 224,194,95+4
EXPENSES �
Salaries,wages arr bene t5 9.291,5 8 815,995 33,574,351 18,721#,288 4,42 572 ,4987 9 925,763 - 2,312,878 74.767,224
Interest on long-termdebi 435,225 - 205,59# 430,479 1881 63� 9 - - 1,041.977 2,565,124
famatenals,goods,SUPP40% !
and IitE 532,636 473,840 1,773.752 5,728,185 `'2, ,839'".....,,,,--- ,971 18,175 - 5,479,049 19,22$L407
Contracted services 969,719 11,391 M0.139 6,526,557 .1OL735,9� 402,582 172,544 - 9,858,250 21,296,190
Other Opera"13 expenses 4,157,946 4x#4,992 9,786,612 11.63+4,375 '3QO1,14 2,040,23$ 210,096 - 2,525,310 34,000,713
External transfers and grants 4.0D1,02S - 1,D5047 r. � 803,800 - 95,34,823 - 21,+453.996
ARO a stment 650,512 - - 4,3 ,214 {2, 5�'' 1,172 ` - 30,12+4 (20,693,835)
Amortization 294,543 331,946 1,573,670 9,7.8 ... - .-3,179,26 " 1,667,078 762,237 ` 3,706,191 2002,777
18,662,134 2,079,414 49,199,662 957 8 {1,X3,5# 13,279,176 1,998,515 15,634,23 16,753,1000 174,357,986
ANNUAL SURPLUS(DEFICIT) 3 93,295,367 S 37+4,535 5 (2d,288,277� 27,278,17 $ (10,662,809) $ (1,931,194) 5 3,569,852 S 45,934,068
58
Cape Breton RegiGnal Municipality
Consolidated Schedule of Segment Disclosure
For theyear ended March 33.2022
General Poft of Syd"y €tecvea6on Planning and
overnffeant Davebpmant Prolective Transpo tafiDn EnvuonmenW and CaEt FW Deve=oPmerd E=ducational
Year ended March 31,2072 Services CorpUAGn Services Services services Services Services Services Water UbMy TaW
REVENUES
Taxation S 75,469,652 S $ 18,295,207 8,017,500 5 $ $ 15,282,089 S
Grants in Neu of taxes 9,436,816 - - - - 9,438,816
ervIces provided to 0ther
governments - - 801,142 - ! - - - - 801,142
Sales of services 51,608 - - 76,332 - 994,513 - - v 1,796,453
Revenue fxorn own sources 2.758.561 7E33,1 [} 539,119 - 2,000,470 �- `•��61,a 10 - - 6,963,14'
uneondtonal"nsfers from ``'•
otherpavemmentss 31,175,896 - - �. `, �� � 31,175,896
Conditional transfers from
oft(governments - 371,710 4,260,247
Cap"grants 9,222 - 9,21Epgg 36,420,233 629/44- - - 46295,694
Metered sales - - - - - / - - 19,345,9#0 19.345,914
Other water revenues - - }` I �l - 773.773 773,773
lnvesknrerttincom 112,1U2 - - -}' ' - - 112,102
Gain on safe of;roper#ies 144,339 - 4,959,4x470 - - - - - - x.094.938
120,159,295 1,074,800 20,845,714 17,956.431 39,3281763 i,6 ;953 61,610 15,282,089 7E3,i19.683 244.482,178
EXPENSES
Salaries,wage's and benefits 8,150,429 613,060 32,927,030 18.114,949 4, 1,2157,... 4,529,338 895,685 - 2,427,63$ 71,8E75,391
Interest on long-loan debt 372,139 - 165,084 595,204 111;-us �� 7,39, - - 1.065,042 2,430,782
�,laterisls,goods,suPpHes ,
and>�tifts a",170 289,295 1,498,739 5,867,814 1,954,577` 1,942,464 11,787 - 4,500,754 16,948.2W
Contraded services 772,140 129,013 733,309 7.154,720 1x,682,925 576,213 240,598 - 1.827.035 22,152.953
Other operatnq expenses 3,655,063 199,716 9,586,363 3,479,724 �/.'~2;fD4,$5T 1,651,,120 2132.442 - 2,7'37,911 23,614,
Extemal transfers and 0rWs 3,711,72$ - 1,666,690 - - 15,262,099 - 20.864.287
Amoeluati)n 278,932 363,172 1,385,806 9,848.684 jl-.d"859 I.iO5. 736,471 - 3,729.115 20,332,281
7 17,874,601 1,586,256 47.162.953 44,19%601 21,978 6{3�� 25 2,047,343 45,282,089 16,277.792 179,149,020
ANNUAL SURPLUS�DEFIC17) $ i02,334,694 (511,458)$ {18,517,235} 5 {28,7U4.17 $ , 0.44 $ 4,572) S (2,026,333) 5 � 3 3.641,891 $ 56,333,#58
f
0
59
Cape Breton Regional Municipality
Schedule of Remuneration and Reportable Expenses of Council
For the year ended March 31, 2023
Annual Travel
Council Remuneration Expenses
D. Bruckschwaiger $ 52,626 $ 3,898
J. Edwards(Deputy Mayor) 54,728 $ 4,471
L. Green $ 52,626 $ 4,900
S. Gillespie $ 52,626 $ -
C. MacDonald $ 52,626 1,360
E. MacDonald 52,526 $ 7,740
G. MacDonald 52,626 $ 77814
E. Ma Mullin(Deputy Mayer) $ 55,717 $ 7,949
A. McDougall-Merrill (Mayor) $ 5848 $ 23,911
D. ' inn 521 25305
S. Parsons 526 2,940
G. Paruch $ 52,5 $ 3,344
K.Tracey 525626 41429
5
60
Cape Breton Regional Municipality
Schedule of Remuneration and Reportable Expenses of Senior Staff
For the year ended March 31, 2023
Annual Reportable
Senior Staff Remuneration Expenses
D. Campbell-Ryan $ 110,384 $ 4,623
J. Campbell $ 125,961 3,806
K. Durning $ 94,652 $ 941
D. Evely $ 125,961 1,367
D. Kachafanas $ 125,961 $ 1,344
W. MacDonald 133,574 $ 4,241
J. MacKinnon 178,814 $ 9,144
M. Ruus $ 125t330 $ 3,61
M. Seth $ ,139 $ 87451
M.Walsh 220, 10,071
R.Walsh 647 $ 1,915
26
61
Cape Breton Regional Municipality
Schedule of Operating Fund and Change in Fund Balance
For the year ended March 31, 2023
(Unaudited)
2023 2022
f11E
Taxes 119,087,257 1181064$148
Grants in lieu of takes 9,396,051 9,436,816
Services provided to other governments 1,145,521 801,142
Sales of services 4,172,809 1,796,453
Revenue from own sources 11,826,538 11,211,569
Unconditional transfers from other
governments 15,851,979 31,175,896
Conditional transfers from other governments 4,6095846 4,269$247
Disaster recovery 6,213,522 -
1 03,023 176,746,271
EXPENSES
General government services 16,996}696 15,224,793
Protective services 54,701,383 53,053,536
Transportation services 43,239,884 355242511
Environmental health services (34,841,492) 18,893,401
Public health and welfare services 257215969 2,320,661
Environmental development services 1,226}578 1,35'1,472
Recreation and cultural services 11,609,926 9,752,691
Educational services 15,534,623 151282$9$9
110,187}967 151,1211354
Excess of revenues over expanses before the follovA09 62,11 5,056 25,624P917
FINANCING AND TRANSFERS
Debenture and term roan grin i al
instalments (8,506,443) (7,9655269)
Transfer to special reserve f nds 3,589,290 (16,821,368)
Transfer to general capital nd - (1,852}912)
Amortization of bond discount (57,520) (58,527)
(4,974,763) (26,698,076)
CHANGE IN FUND BALE 571146,293 (1,078,169)
FUND BALANCE,B NNS F YEAR (61,799,811) (60,717,652)
FUND BALANCE,END OE (4,650,618) (61,790,811)
or
27
62
Cape Breton Regional Municipality
Schedule of Water Utility Operating Fund and Change in Fund Balance
For the year ended March 31, 2023
2028 2022
OPERATING REVENUES
Metered sales 19,822,086 19,845,910
Public fire protection 7,976#391 7107 � 91
Consumer's interest 769,982 661,977
27,168,859 27,084$278
OPERATING EXPENSES
Source of supply 802,819 500,111
Purer and pumping 1,820,919 1,827,578
Water treatment 4,967,378 4,506,364
Transmission and distribution %06,939 4,732,871
Administration and general 3,2 358 2$856,054
Faxes 1230 1,987$221
1679005688 16}410,194
Excess of revenues over expenses before the fell ing 10,267,726 10,674,084
NON-OPERATING REVENUES
Miscellaneous 280,693 111,796
NON-OPERATING EXPENSES
Interest on debentures 1,041,977 1,065#842
Amortization of debt discounts 24,589 32}545
Other 28,608 24,151
Transfer to water capital fund 8,521,404 8,666,766
Transfer to general capital fund 650,000 650,006
10,268,525 1014391304
CHANGE IN FUND BALANCE 284,894 3467876
FUND BALANCE,BEGINNING OF R 8,914#927 6,568t351
FUND BALANCE,END F EAR 77149,821 6,914,927
2
63
Cape Breton Regional Municipality
Schedule of Capital Fund and Change in Fund Balance
For the year ended March 31, 2023
Unaudited
2023 2022
REVENUES
Capital grants 18,220,293 14,463,770
Gain on disposal of assets - 4,250,000
18,220,293 18,713,770
EXPENSES
General government services 945,054 278x932
Protective services 1$573$670 1,385,808
Transportation services 13,718,084 3,948,090
Environmental health services 33747#97'7 3TO84,859
Recreation and cultural servi es ,2 0 1,805,834
Planning and development services 7 237 736,471
272 1 }239,994
Excess of revenues over expenses before the fo1lo ing (34,194,979) 2,473,776
FINANCING AND TRANSFERS
Transfer from reserve funds 16,963}712 10,253,779
Transfer from general operating fund - 1,352,912
Transfer from water operating fond .31 0,000 650,000
Debenture and term loam principal ins rents 8}506,443 7,9 ,2fi9
26120,1 20,721,960
CHANGE IN FUND BALANCE {3,074,824} 23,195,736
FUND BALANCE,BEGINNING I F AR 29116960,589 263,500}853
Z=
FUND BALANCE,END OF'SEA 233,621,765 291,696,539
..1
64
Cape Breton Regional Municipality
Schedule of Water Utility Capital Fund and Change in Fund Balance
For the year ended March 31, 2023
Unaudited
2023 2022
REVENUES
Capital grants -
EXPENSES
A orti atlon 3,736,304 3,729,115
Deficiency of revenues over expenses before the following 3,736#304 (3,725,11
FINANCING AND TRANSFERS
Transfer from water operating fund 8,521,404 3,666,766
CHANGE IN FUNS]BALANCE 4$78 100 41937#651
FEND BALANCE,BEGINNING OF YEAR 101,557,631 06,61 5,530
FUND BALANCE,END OF YEAR 106,342x731 101,557,631
30
65
Cape Breton Regional Municipality
Schedule of Port of Sydney Development Corporation Operating Fund and
Change in Fund Balance
For the year ended March 31, 2023
Unaudited
Budget 2023 2922
(Unaudited)
REVENUES
Wharfage and berthage $ 859,943 $ 898,742 $ 427,711
Passenger tax 785,623 876,697 -
Events 96$750 391606 511763
Security 2 , 279,749 85,679
Storage and rental X1,9 4 255,864 144,880
Craft market 6, 7 67,278 -
u�ndr 4, ,945 13,557
overnmentfunding 144,177 371,710
45,075 , 48,049 17074,805
EXPENSES
Advertising and promotion 17 151924 10,860
Bad debts x00 1,752 1,655
Cruise activities 2,0 55,222 321
Dees and fees 23T 40 2 T 26 8,564
Events 52,6 13,562 2,149
Insurance , 0 68,094 52,079
Interest and bark charges 3,87 5T212 37990
Miscellaneous , 16,292 5,830
Office and administration 8,087 12,034 8,167
Professional fees 4 8 11 P381 129$01
Rent , o 52,320 52,320
Repairs and maintenance 51921 225,119 195,527
Security 1 436 179,831 45,115
Travel 27, 0 21,119 19,992
Utilities 1 20 223,085 173,452
Wages es and benefits 78 ,834 815,895 613,059
4,9'18 1,746,988 11223}384
Excess of revenges over expenses before
the following 350,159 6991981 (143}234)
Amortization of capital a ets (400,900) {331,948} (383,172)
Gain on disposal of ass is 6,500
CHANGE IN FUND BAL (49,84'1) 374,535 (51 1,458)
FUND BALANCE, BEGINNING CSF 410137078 4,529,534
FUND BALANCE,END of YEAR $ 4,892,61 $ 4;0187078
1
66
Cape Breton Regional Municipality
Schedule of Reserve Funds and Change in Fund Balance
For the year ended March , 2023
Unaudited
2023 2022
REVENUES
Investment income 789,388 112,329
Sale of properties 329,81 $44,938
Grants 10,720,853 31,822,124
11,840,556 32,779,391
FINANCING AND TRANSFERS
Transfer from operating fond (3,589,200) 16,821,368
Transfer to capital fonds ZL (16,963,712) 10,253,779)
(210,552,912) (6,567,589
CHANGE IN FUND BALANCE ",71 356) 39,346,980
FUND BALANCE,BEGINNING F YEAR 61,167,639 217820,659
FUND BALANCE,END OF YEAR 52,455,283 61,167,639
32
67
Cape Breton Regional Municipality
Schedule of Water Utility Reserve Funds and Change in Fund Balance
For the year ended March 31, 2023
2023 2022
REVENUES
Investment income 4,367 (242)
CHANGE IN FUND BALANCE 4}367 (242)
FUND BALANCE,BEGINNING OF YEAR 2,047,934 2,048,176
FUND BALANCE, END OF YEAR 2,052,301 2}047,934
33
68
a ..e ton Regional Municipality
Water Utility
financial Statements
Marcie 31, 2023
w
69
Cape Breton Regional Municipality Water Utility
Financial Statements
For the year ended Marcor 31, 2023
Page
Management's Responsibility for the Financial Statements........................ ...................................... .............1
Operating Fund
Statement of Financial Position....... .................................... . ..5.................................., . .............................
Statement of Financial Activities........................................z.1 ........ .......................................,. ................
Statement ent of Operating Fund Surplus........................... 1111..., ,............................. ..........................
Statementof Cash Flows.............. 4.......................... ....... .......... :............. .........................................,,......
Capital Fund
Statementof Financial Position... 1111................. ..../....... .........4......4.................................. ...........
Statement of Change in Cash—Depreciation ese ..... ...... ......................................... ...................7
Statement of Accumulated Allowance for Depreci ti ............. ....................................4......4......................7
Statement of Investment in Capital Assets................4-4—....4— ..... ....4...4...4...........,... . ...................
Special Reserve Fund
Statement of Financial Position .................... ..... ..4............ . ...•....................................,. ...........
Ap
Statement of Special Reserve....... ................::�......4 .................................,............... ...........................
Notes to Financial Statements.... 111.1 . _........:: ............. ... ............1........44...4.....,,1
.:� .,. ...........................1111..
Schedules
Schedule A-Utility Plant a' q `' ............ . . ..................................... . .........................1
Schedule B-Capital Debthaler a ;-.-.-.,,...... ,.................... ...............................L....4..............111... .........
16
yw�
w�
70
L
ManagemenCs Responsibility for the Financial Sate
The accompanying financial statements of the Ca Br ton lie Tonal MunicipaliN later Utility (the "Water
Utility") are the responsibility of the Yater Utility's an gem n have been prepared in compliance with
legislation and in accordance with the Accounting .rid orti. H dbook for hater Utilities in Nova Scotia.
summary of the significant accounting policies ate. descri ' d i 'Note 1 to the financial statements. The
preparation of financial statements necessarily involves t e of ates based on management's judgment,
particularly when transactions affecting the current accoufntin rigid of be finalized with certainty until
future periods. w
The Yater Utility management maintat a , ... .of internal con ols designed to provide reasonable
assurance that assets are safeguarded, trans tion"' re ploper rued and recorded in compliance with
legislative anal regulatory requirements, and rell ble� ciaL information is available on a timely basis for
preparation of the financial statements. These systemi ",are ern itored and evaluated by management.
xx.
The audit committee meets with m er ent'bnd the ex .tnal6uditcrs to review the financial statements and
L 5
1 ti�
discuss any significant financial r 'port'.g - � .int real contro ., tiers prior to their approval of the financial
statements.
The financial statements have n y I7rs' Report
, ' *endent external auditors appointed by the Water
Utility, The accompanying Indepe nt Audi outlines their responsibilities, the scope of their
examination and their opinion on the Wate� 'fit 's dial statements.
x'
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Jennifer Campbell, Chief Financial
71
Cape Breton Regional MWater Utility
Statement of Financial Position — Operating Fund
As at March 31., 2023
2023 2022
ASSETS
Cash 1 A84538 2,550,750
Water rates re.eiva le(less allowance for doubtful
accounts$369,558(2022-$696,329) 10,239,062 10,451,906
Sundry receivables 158,513 1091762
I nventories 427,972 394,636
12,710,185 1 3,507#054
LIABILITIES
Payables and accruals � � � 4,525,206 4,945,245
Unearned revenue -� 11353,430 12384$337
Due to Cape Breton Regional Municipality
General section, operating fundGeneral sectionx capital fund 693,440
Due to water utility,capital fund 3p666FI73 3,852,053
;. 9,544#809 101 5,075
x�
SURPLUS 3,165,376 2,631,979
12,710,185 135071054
l :
See accompanying notes to fin lale ots. r
On behalf of the Cape Breton a lona- unkci of Water Utility:
2
72
Cape Breton Regional Municipality Water Utility
Statement of Financial Activities — Operating Fund
For the year ended March 31, 2023
2023 2022
Budget Actual Actual
(Unaudited)
OPERATING REVENUES
Metered sanies 19,218,619 19,322,036 1913451910
Public fire protection 71076$391 7,176,391 7,076,391
Consumees interest 0,0o0 769,932 661,977
Service connections 6 130 230,693 111 x796
?6,7 1 1
1 10 27,399,052 27,196,074
OPERATING EXPENSES �.
Source of supply _553 502#619 500,112
Power and pumping ,9 , 6 � �� 919 1, 27, 73
Water treatment 4,899#272 ,373 45065364
Transmission and distribution 4,912,368 f6,939 5,382,371
Administrartlon and general 3, 2; 3,206,353 2#656,054
Depreciation 3 0$ 0 3,705,904 317291115
Taxes 04 06 1,896#239 1,937,221
` . 21,5 613 2112 71537 20,789,310
Excess of operating revenues over expenses
before the following 126P350 6,141,515 6T4067764
ti
NON-OPERATING REVENUES
Amortization action of deferred capital contributions� ���4`� V8,504 298,502 298P 02
NON-OPERATINGEXPENSES
Debt charges . .�
Provision for principal rep re ��N 13,_5 }500 3,564,500 315647600
Interest 5,842 1 PO 1 7977 1,065,842
Amortization of debt di ' n 37,112 24,540 32,545
Bank fees/charges 204,061 25,603 24,151
Capital expenditures out of operM s 1,259,000 13250,000 1,373,152
x 5$121,535 5,996,620 6;060x190
CHANGE IN FUND (696,68.1.2 533,397 $ 645076
Seecoorn t ire no to ancial statemj
rnen';
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73
Cape Breton Regional Municipality Mater Utility
Statement of Operating Fund Surplus
For the year ended March h 31, 2023
2023 2022
SURPLUS,BEGINNING OF YEAR $ 2,631,979 $ 1,986,903
Change in fund balance 5331397 645,076
SURPLUS,END OF YEAR $ 3,165,376 2,631,979
See accompanying notes to financial statements.
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74
Cape Breton Regional Municipality Water Utility
Statement of Cash Flows - operating Fund
For the year ended Lerch 31, 2023
2023 2022
ASH FLOWS FROM OPERATING ACTIVITIES
Change In fund balance 533,397 645,676
Change 1n non-cash operating working capital
Water rates receivable 2121844 (11372,515
Sundry receivables (48,751) 106,769
Inventories (33,336) (2,877)
Payables and accruals (420,639) 1,005,494
Unearned revenue (36,967) (326 10 1)
213,208 49,846
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in due to Cape Breton Regional #
Municipality, operating fund (1,291,694�
Increase(decrease) in due to Cape Breton lei 'al �
Municipality, capital fund (693,440) 693x440
Increase(decrease)in due to water utility,cap'.al fir 85,880) 280,346
(879,320) 31 7,403)
DECREASE IN CASH AND CASH EQUIVALENTS (666,112) (267,562)
F � 818,312ASH AND ASH EQUIVALENTS, BE i i1NY
ASH AND CASH EQUIVALENTS, ENI]OF YtAk1,884,638 $ 2,550,750.
J
See accompanying notes to non-consqWlaWd fin not �Natem t .
}ry
k
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75
Cape Breton Regional Municipality Water Utility
Statement of Financial Position — Capital Fund
As at March h 1, 2023
2023 2022
ASSETS
Cash 4,530,994 $ 6,287,355
Cash—depreciation reserve(note 2) 3,457,530 480,170
HST receivable 1521015 41,124
8,140,639 6,808,649
Due from water utility, operating fund 3,6605,173 3,852,053
Due from general operating fund --
narartied debt discount 1,098 58,201
Capital assets
Utility plant in service{Schedule A) 183P475,826 180,526,292
Work in progress 215991293 1251585
Properties adjoining watershed 174,977 174,977
186,250,096 180,829,854
198,1 18,005 $ 191,548,757
LIABILITIES `
Accounts and holdbacks payable .tr 1,786,192 72,573
Due to Cape Breton Regional Municipality
General section,capital fund �� �'44,. 3001772 371T101
Asset retirement obligation(late 4)�� `4� ::.mow ��� 39,086
Term debt(Schedule B Wit.} 1813721500 211937,000
20,593#550 22x380,879
DEFERRED CAPITAL NT T #082,306 12,252,332
RESERVES
Accumulated allowance f r de ec€atio �.
utility plant(note 3 58,960,723 85,253,819
FUND BALANCES 982478,427 9118811927
m
198,1187006 101548,757
See accompanying rotes to financial statements.
On behalf of the Cape Breton Regional Municipality Water Utility:
Mayor
Clerk
8
76
Cape Breton Regional Municipality Water Utility
Statement of Change in Cash— Depreciation Reserve
For the year ended March 31, 2023
2023 2022
BALANCE,BEGINNING OF YEAR 3,457,630 480,170
Depreciation 3,706}904 3,729,11
Amortization of capital contributions (238,502) (298,502)
Capital purchases (3p971,731) (453,153)
Fund, end of year 2,834,301 3,457,630
Amount over(under)funded 563,329 (2,377,460)
CA
SH, ENS] YEAR 3t 40,
Statement of Aacun)bla d Allowance for Depreciation
For the year ended March 31., 2023
2023 2022
BALANCE,BEGINNING OF YEAR 65,253P819 61,524,704
Depreciation for the year 3,706,904 3,723,11
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BALANCE,END OF YEARQk 63,360,723 65,253,81
JA. tax t of Investment in Capital Assets
For the year ended March 3 9, 2023
f.
2023 2022
BALANCE BEGINNING YEAR
1,661, 7 $ 86,724,27
Tera debt retired R 3,664,500 3,564,500
Capital out of operatio 1,250,000 1 373 162
BALANCE,END OF YEARR 36,476,427 31,661,327
See accompanying notes to non-consolidated financial statements.
7
77
Cape Breton Regional Municipality Water Utility
Statement of Financial Position —Special Reserve Fund
As at March 31, 2023
2023 2022
ASSETS
Cash 1,1616,626 1,166,626
Term deposit 885,676 881,308
2,062,302 210471934
RESERVE
Special reserve 2,052x302 2,047,934
See accompanying notes to financial statements.
{
On behalf of the Cape Breton Regional MuiciplityIat r Utilit .
Mayor
Clerk
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78
Cape Breton Regional Municipality Water Utility
Statement of Special Reserve
For the year ended March 31, 2023
2023 2022
Non--shareable Future Watershed Sysco
debt capital land waterline
expenditure expenditure acquisition maintenance Total Total
BALANCE,
BEGINNING
OF YEAR 55,368 936,695 3 r 2
on716,245 21047,934 2,048,176
1 nteret�
investments 176 2,971 1 2 4,368 (242)
BAOF LANCE,END 1 � �} } ,+EA 56,543 939,666. 40,848 $ 716,245 2 0, 2,30 2,14 , 4
See accompanying notes to financial statements.
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Cape Breton Regional Municipality Water Utility
Nates to Financial Statements
For the year ended March 31, 2023
The Cape Breton Regional Municipality Act, assented to by the Province of Nova Scotia on .duly 30, 1994,
legislated the incorporation of the Cape Breton regional Municipality as of August 1� 1995.
The Cape Breton regional Municipality Water Utility assumed the operations, as of August 1, 1995, of the
fallowing utilities:
Town of Sydney Mines Water Utility `
Town of North Sydney water Utility
Sydney Water Commission
Municipality of the County of Cape Breto, Water Uti�
'own of Glace Bay Water Utility �._..
Fawn of Dominion water Utility
and District Vater i Sion
New Waterford a .��
'own of 1_euisbourg Water Utility
1. SIGNIFICANT ACCOUNTING POLICIES T
{e) Basis of presentation
r
"hese financial statements have eeo prepared ireac with generally accepted accounting
principles adopted for Water Utilities ' �Soo n � i ended for the use of the Cape Breton
Regional Municipality Water Utility tMk,� tilA o 'cil and Service lova Scotia and Municipal
Relations.
,;y°.
The basis of accounting ed in these financia .ate nts differs materially from Canadian Public
� ;
Sector Accounting Stan b rd pr.seri ed b the} artered Professional Accountants of Canada
Handbook (the CPA H ndb ok). T e significant diff ences between generally accepted accounting
principles for Water N'es in va P665a and the CPA Handbook are that the CPA Handbook
requires:
•
Financia + #stern i t r a� on consolidated basis to reflect the assets liab�litie ,
reenu a�xp s, and, changes in fund balances and in financial position of all
orgy ati'%dqd
co rnissie , nd�gencies which are owned or controlled by the Water Utility.
This�ulde} at a �ini um, the individual funds represented in these financial
staternenterati Fu d, pital Fund and Deserve Funds. The consolidated financial
statements prepairbd in acoer nee with the CPA Handbook would include a Statement of
Financial Position, Stature of Financial Activities and a Statement of Changes in Fund
Balances;
• Revenue and expenses be recorded on a full accrual basis;
• water Utility capitalize all of its capital acquisitions rather than charging some to operations in
the year acquired; and
Principal deka repayments not be recorded as an expense of the Water Utility;
10
80
Cape Breton Regional Municipality Water Utility
Notes to Financial Statements
For the year ended March 31, 2023
1. SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)
b Cash and cash equivalents
Cash and cosh equivalents of the operating fund is defined as cash on land and on deposit at banks
net of outstanding cheques and deposits.
c Revenue and expenses
Major revenue and expense items are recorded on ac ual basis.
Certain sources of revenue, including forfeited di cou and est o pest due rates, are recorded
on a cash basis.
Capital grants and contributions are recor d sing the defeGrarne;o of accounting and are
amortized to revenue at a rate correspondin wit thea ization of the related capital asset.
Principal and interest payments relating t long rm bt a e recorded as an expenditure when due for
payment.
d Allowance for doubtful accounts �
valuation allowance is providedf r estima at will b curred in collecting rates receivable
outstanding.
i
e Inventories,
Inventories ere stated at cost. k,Y
(f) Use of estimates
The preparation of fin c« stater nt h conformity,
Frith rtora�ii accepted accounting principles
requires management' make . date tions that affect the reported amounts of assets
and liabilities and discioure continue assets and liabilities at the date of the financial statements
and the reported a vn and tense during the reporting periods. Significant items
subject to such time and �rnpto� Judera�iation of accounts receivable and carrying
amount of capit as ts. Actu sults old differ from those estimates.
(g)Asset retireretoblig .
A liability for an arse H atio {is recognized at the best estimate of the amount required to
retire a tangible capital ase fiK a corn onent thereof} at the financial statement date when there is a
legal or contractual obligation for t " ater Utility to incur retirement costs in relation to a tangible
capital asset or component thereoq, the past transaction or event giving rise to the liability has
occurred, it is expected that future economic benefits will be given up, and a reasonable estimate of the
amount can be made. The best estimate of the liability includes all cosh directly attributable to asset
retirement activities, based on information available at Mar 31, 2023. The best estimate of an asset
retirement obligation incorporates a present value technique, when the cash flows required to settle or
otherwise extinguish an asset retirement obligation are expected to occur over extended future periods.
81
Cape Breton Regional Municipality Water Utility
Notes to Financial Statements
For the year ended Marcie 31, 2023
1. SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)
g Asset retirement obligation
When a liability for an asset retirement obligation is initially recognized, a corresponding asset
retirement cost is capitalized to the carrying amount of the related tangible capital asset or component
thereof}. The asset retirement cost is amortized over the useful life of the related asset. For asset
retirement obligations associated with tangible capit s is no longer in productive use, the Water
Utility recognizes an expense of the sane amount ai the I' bility.
At each financial reporting date, the Water Utility r views the ing amount of the liability.The Water
Utility recognizes period-to-period changes to a 1i bilit' e to pay age of time as accretion
expense. Changes to the liability arising from. inns to either h<bmin"a a amount of the original
estimate of undiscounted cash flows or the d', coir t rate are recognie` s.�� .n increase or decrease to
the carrying amount of the related tangible pit asset`
The hater Utility continues to recd ni a the bit y u it it is settled or otherwise extinguished.
Disbursements rade to settle the liability are' ucted fir' the reported liability when they are made.
(h)Financial instruments
Initr #measurement
vx
Financial instruments are measured t fai 1ue h7val.7eiiszadjusted
or acquired. For financial instruments
subsequently measured at cost or ama i d " , f i, by the amount of the related
financing fees and transactipa-��osts. Trams ction costs and financing fees relating to financial
instruments that are rneas ed subs q ently at fWr v4c3e are recognized in operations in the year in
5:
+1
which they are incurred.
Financial instruments nsi o)ad
h and cash a valent , recei�r l payablesand accruals,
accounts and holdbaEc�C �yble o -terra debt.
Subsequent measure
At each repertir date, h ter me its rani assets and liabilities at Dost or amortized
cost(less imp me in the case�fJ� ng,
al assets), except for investments, which must be measured
at fair value.-The r Utility useffective interest rate method to amortize an premiums,
discounts, trna� n fees finfees to the stoternent ofnatci activities. the financial
instruments measured a ortl are cash aid cash a uivalents, receivable , payable and
accruals,accounts and holdbc � nd long-term debt.
Impairment
For financial assets measured at cost or amortized cost, the Water Utility regularly assesses whether
there are any indications of impairment.ent. If there is an indication of impairment, and the Water Utility
determines that there is a significant adverse change in the expected timing or amount of future cash
flows from the financial asset, it recognizes an impairment loss in the statement of financial activities.
Any reversals of previously recognized impairment losses are recognized in activities in the year the
reversal occurs
2
82
Cape Breton Regional Municipality Water Utility
Notes to Financial Statements
For the year ended March 31, 2023
1. SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)
h Financial instruments
Unless otherwise noted, it is managements ements opinion that the Water Utility is not exposed to significant
interest or credit risks arising from financial instruments.
. TRANSACTIONS WITH CAPE BRETON REGIONAL MUNIQIPALITY
a In general, and where identifiable,costs incurred by a Q.pe Breton Regional Municipality on behalf of
the water utility are charged to the utility.
b Salary and wage-related costs are allocated in opo.ib time iperforming functions on behalf
of the water utility.
i
c s prescribed by the Nova Scotia Utility and -ev'i Board, there is a yea administration fee charged
to the hater Utility by the Cape Breton a 'ion -Munickalt $ which includes salary, overhead, utilities
and other administration charges totaling 8,35 8 -.022 $7,981#249).
d) The water utilities provide public fire protection a rnun-. ality. The charge for this service(included
in operating revenues) amounted to $7,076,391 (202 X7,0 The charge is governed by the
Nova Scotia Utility and Review Boa
e) The water utility is not exempt from` niciRk- n within the ape Breton Regional Municipality.
The various funds of the Cape Breton I kona� nici' aiity Water Utility and the Municipality include a
series of interfund balances as noted in thspe *ve funds. All interfund balances will be settled
No �rest haee
within the next fiscal pero� charged or paid on the interfund balances
outstanding.
. RATE OF RETURN ON RA .EIE
For the year ended Mauch 331, ,the Ca0e Breton Regional Municipality Water Utility had a rate of return
on rate base of 5.8% ( o -&.2%).
�
ASSET4. RETIREM T
0
LATI `
The l ater U ti I ity obi ater s r tanks that all within P 3280. ori retirement of these facilities,there
is an obligation to eliminate a envira nta. impact and restore the land to its prior state. Estimated costs
have been discounted to the press aiue sing a discount rate of 4.00% per annum. The transition and
recognition of asset retirement obligations involved an accompanying increase to the carrying value of the
related capital asset.
Changes to the asset retirement obligation in the year are as follows,
2023
Opening balance $
Acquired upon adoption 1391086
$ 139,086
1
83
Cape Breton Regional Municipality Water Utility
Notes to Financial Statements
For the year ended parch 31, 2023
. FINANCIAL INSTRUMENTS
The carrying value of cash and cash equivalents, receivables, payables and accruals and accounts and
holdbacks parable approximate ate their fair value due to the relatively short terms to maturity.
The carrying value of inter-fund balances and due to/from Cape Breton Regional Municipality approximates
its fair value due to special conditions attached thereto.
The carrying value of long-term debt approximates its f i:-'v el due to the teras and conditions bung the
sate or similar to current market rates available to the 'ter tflity.
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Cape Breton Regional Municipality Dater Utility
Schedule A - Utility Plant and Equipment
For the year ended March 31, 2023
2023 2922
Organization 4P000 4,000
Working capital 70,162 70,162
74,162 74,162
Land and land rights
Source of supply land .. 1,435,550 1,376,122
Power and pumping land 343x374 343,374
Transmission land 1572021 157,921
1,935,945 1,375,517
Structures and improvements
Source of supply 19,0 595 19012,595
Power and pumping pin °,° � ,158 7,386,572
Purification structures 2,791,214 2,791,214
Distribution and sor 5,336,95 5,336,966
Shop _ 299,817 299,817
Asset retirement obligation 139tO8 —
� 35,094,836 34,827,166
Equipment
Electrical pumping equipment 3x776,122 3,776,122
Diesel pumping quip ent 543,261 543,261
Purification equipment � 24,134513 23,933,954
Office furniture and equipment + 3821453 3621453
Transportation equipment 4��, 309,945 3091945
Meter shop equipment x ry++„ 30,689 30,639
Tools and work equipment 2687948 268,946
680,584 680,584rotor operated tools
Other 690,072 590,072
r 30,798,387 30,598,028
Mains
Transmission 31,579,074 31,579,074
Distribution � � 52,595,129 50,890,151
4 f 175,203 2#469,225
4
i
Services 15,2601313 14,871,231
Meters 12,101,272 11,896x759
Hydrant `�` ,037,708 3,915,154
*� 183,475P826 180,526,292
15
85
Cape Breton Regional Municipality Water Utility
Schedule B-Capital Debt Charges
For the year ended March 31,2023
Balance Balance
Date of Maturity Interest March 31, March 31,
Issue Date Rate% 2422 :Iss a erred 2023
Municipal v
Finance
Corporation 1
7-A-1 2007 2022 4.746—4.770 $ 5,487,000 $ 5,487,900 —
28-AA 2008 2023 4.949—5.088 4,900,009 — 700,000 4,200,300
30-A-1 2010 2025 4.500—4.875 6,750,000 �� — � 780,00} 0,000,000
33-A-1 2913 2023 2.464—2.979 1,600tOOO 00,000 800,000
34-A-1 2114 2929 2.516—3,792 3,200 — 90,OQ0 2,890,000
42- -1 2022 2027 2.575—3.290 — 4, -- 4,572,500
$ 21,937,00 $",,,4.5 2,58,'137,000 i 18,372,500
Principal repayments required during the next five gears are as fop6ws�
2024 $7,08 ,600
202 $2,0 590
,.
2026 $5,814,5
2027 $1,3'14,500
2028 $ 4150
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2023 AL,jidigs
Report tothe A
March 312023
Darren Cluss , CPQ, C
T. .567.6401
E: darre,n.ch,ia,sson@mnp,.ca
I
87
October 28, 2024
Members of the Audit Committee of Cape Breton Regional Municipality
Dear AuditCommittee:
We are pleased to submit to you this report for discussion of our audit of the consolidated financial statements of
Cape Breton Regional Municipality and its subsidiaries (the "Municipality") and financial statements of the Cape
Breton Regional Municipality Water Utility (the "Water Utility") as at March 31, 2023 and for the year then ended. In
this report we cover those significant matters which, in our opinion, you should be aware of as members of the
Audit Committee.
We have substantially completed our audit of the consolidated financial statements of the Municipality and the
financial statements of the Vater Utility which have been carried out in accordance with Canadian generally
accepted auditing standards.
Unless unforeseen complications arise, our Independent Auditor's Report will provide unmodified opinions to the
Mayor and Council of the Municipality and Water Utility. A draft copy of our proposed Independent Auditor's
Reports are attached at the end of this report.
This report is intended solely for the information and use of the Audit Committee and management ent and should
not be distributed to or used by any other parties than these specified parties.
The matters raised in this and other reports that will flow from the audit are only those. rhich have core to our
attention arising from or relevant to our audit that we believe need to be brought to your attention. They are not a
comprehensive record of all the matters arising, and in particular we cannot be hold responsible for reporting all
risks in your business or all control weaknesses. This report has been prepared solely for your use and should not
be quoted in whole or in part without our prior written consent. No responsibility to any third party is accepted as
the report has not been prepared for, and is not intended for any other purpose.
We would like to express our appreciation for the excellent cooperation we have received from management and
employees with whom we word.
We appreciate having the opportunity to meet with you and to respond to any questions you may have about our
audit, and to discuss any other matters that may be of interest to you.
Sincerely,
MAIPZ,Lp
Chartered Professional Accountants
enols
88
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Management ep Is ta t
w
o n ...M'..... ..............................M..ni.a w.w...w'.4.r.r w.0 x..... ...................
.........
Independence ...... w.i.....Xr...W..xx n.x..x.x.w....ew..w 1
89
Introductlion
As auditors,we report to the Mayor and Coun:cH on the, results of our examination of the consOlid ated financial
statements of Cape Breton Regional Municipality (the "'Munilci pal ity"') and finandal statements of thio Cape Breton
Re
-ch The e gional Municipality Water Utility(the Vater Utility" as ancle
at d for the year end, Mai 31, 2023. purpos
of this Audit Findings Report i's to assist You, as mernbers, of the Audit Committee, in your review,of the results,of
our aAudit.To facilitate in YOUI-All"Iderstandinig of our findings, Appendix A to this report Rjmmarizes OUraudit
process.
Our report will discuss the status of our engagement, as well as comi-nunicate to,you significant audit, accolunting
and reporting mattlers,arising from our procedures.
We hope that this report is of as'sistanceto,you, and we look forward to discussing our findings and answering
your questions.
Engagi ,emlent StatLIS
We have [SUbs,taiitially] completed our audit lof'the consolidated finaticial statements of the Municipality and are
prepared to sign our Independent Auditor's, Repoil subsequent to,completion of the followirlig prioceduriels]
Receipt olf the signed management representation letter,
0
Diss ussionof,subsequent events with the Audit Committee"
r
Mayor and Council's review and approval of the consolidated inn nciall statements,
Independent Auditor's Report
We expect to have the above procedures completed and to release our Independent Auditor's Report on October
300 2024.
Unless uniOre sleen complications arise, our Independent Auditorl's Report,will lDrovide unmodified opinion,to the
Mayor and Council of the Municipality and the WateiUtility.A draft copy of out-proposed l�n,depet,,'gid eiit,Aud'itol-,"s
Report has, been ifICILA ed with this report.
Of Oica t
Signi' n,t Aud�'ilt, Accoun ingand
Report,'i'ng M�atters
Audft and Reporting Matters
The followingsignificant matters arose during the coursle ofaudit that we wish to bring to,your attention.
Cape Bretoti,Regional Municipality- Il rch,31,20,23 Audit Findings
90
Changes from Audit Service There were, no,deviations from the Audit Service Plan. Please refer to
Nan Appendix B for the significant and higher risk areas and our audit
responses.,
D ,of o*fficulties, Encountered No,significant limitaitions were placed on,the scope or til-ningur
I audit,
Identified or,Suspected Frl
Due to,the i u l° rnIlimitations of an it andthe nature of fraud,
inClUding attempts t,concealmient thit-OLIgh forgery,or collusion, an aUdit
conducted inaccordaii:,ce with Canadian genet-ally accepted auditing
stanclards,cannot be relied upon,to detect fraud.
While,our,audit cani,)oit be relied upot'i,to detect all instances,of fraud,
nio incidents of fraud, or suspected fraud, carne to ur®attention ill,the
course of out-audit.
Idientified or Suspected Non- Nothing has come to our attetition fliat would suggest any u n-
Cornpliance with Laws And compliance,with laws and regulations that WOUld have a material effect
Reguiations on the financial statements.
Mafters Arising in Connection No sigilificatit matters arose clurinthe course of'our audit in
With Related Parties connection,with relat,ecl parties of'the Mun,iidpality,.
Significant Deficiendes, in Our audit process fOCUses on understa,nidit,)g the controls utillized in
-nent's repot-ting systerns, inClUding for estir-nates,to,the extent
Internal Control t n a na g ei
necessary to identify ovierall and specific financial reporting risks. This
risk assessment allows us'to concentrate,our auclit procedures on high
risk areas and,where possible, place reliance on controls within the,
financial ireporting system to reduce the extent of out,testing
It is implortant to, rote that OUr as,sess!'T) rut was not, nor was it ii,,,ltended
to be,sufficient to corniet or coniclude on the Sino fficiency'of int ernial
cot"I'trols.
We, are,required under Canadian generally accepted auditing standards
to,communicate all, significant deficiencies identified during all audit to
the Audit Committee, on a firnely basis. However,we may not be aware
of all significian't deficiencies that do,,, in fact, exist.
While our review of controls was tiotsufficient to express an, opinion, as
:ngs,
to their,effectiveness or efficiencyu ou
,we present to yor findit) tti
Management Letter.
...........
Going Concern, No events or conditions were,identified that may cast significant doubt
on the entityls ability to continue as a going concern, .i.ncluding:Whether
th,e events,or conditions constitute a material unceilainty w1i,either
man ement"s, use of the in concern basis of account"ing is,
................
Cape Breton Regional Municipality March,31,2 023,Au2dit Findings
91
appt-opriate in the preparation ofthe financial statements, adequacy of
related diSCIOSUIres, etc.
Miattlers Arising from We would like to fora-welly acknowledge t cooperation,arid assistance
Disculssions i IManagemenit we received from the management and staff of the Municipality.
There were no significant r-n tter Idiscussed, or SIlUbject to
correspondence,with manaigemen,t that.in ouirjudgment need be
briought to your attention.
Significant Differe,nces, Otie significant adJusItment was pro po sled, to mann get-nent with respect
to thre March 31, 2023, consolidated financial stateine nts.
Final Materia,11ity Materiality is a concept usedio assess thile significance of inisstaitemients
or ornissions that are idei'itified during the audit and is used to,
cleterrnine the level, of aUdi't testing that is carried ult.'Thlie scope Of our
audit work is tailored to reflect the relative size of operations,of the
Jality,at'id auldit
Municipality, and is affected by,our,assessment
I of matet
risk.
Final rnateriality used for our audit was $5,678,000,for March 31, 2023.
Auditor'sViews of ISignificant AcCOUnting Pract I icies
The application of Canadian, public sector accounting standards allows and requires,the Municipality to make,
,account�ing: estimates and judgmients regarding accoufltinliies arid finaincial statement disclosures.,
A
-ovide open and ob ective feedback regarding your Municipality's s auditors, we are uniquely positioned to pi�
accounting practices, and have noted the, ll win itlems,during the clourse Of' nun,®aLj!di,t,t'ha,t we,wish,to bring to
your attention,.
Accounting Policies We noted the following newly adloptied, anid changes in, acCOUnting
policies:
The Municipality aclopted PS,328,0 Asset Retirement Obligations as,
described in Notel to the financial stalteMen ts.,
The adoption ofPS3,28,0 replaced PS3270 - Solid este Landfill
Closure an d Post-Cloisure Liability.
Accounting Estimates The preparation of consolidated financial statements in cotiformity with
Canadian generally accepted accountitig principles requires
managernent to make estirniates and assunipltions that affect the
reported arnOUnts of assets, liabilities,the disclosure of confin,gencies,
and:,the, reported amounts of revenue and expenses in the consioliclated
financial staternents and accomplainy I i D_q n9tes.
........... ..................
Cape Breton Regional Municipality- Mat-chi 31,2,023,Audit Findings 3
92
Amoilization is based our the estimated useful lives ofcapital meets.
Taxes, rates and other receivables,are stated after evaluation a,s,to their
ciollecta,bility and an appropiriale allowance for d'OUbtful accounts is,
provided where,considered necess,ary'.
Asset retirei-ne,-,nt obligations,ire recognize d based upon assumptions
and estimates rel tel tothe arniount and timing of costs for future
removal aril site restoratilion.,
By their nature, these juidgm,ents are Subject to measurement
uiii,certain,ty,and the effect On the finan,cial statlements of changes in
S,LJch estimates and assumptions in fUtUre years,could be, miaterial.
Theise estimates and,assumptions are reviewed periodically and,as,
adjustmei'As become necessary, they are reported in excess of revenues
over expenses in the years ire i which they becora e known.
............................................................................................................................ ..................................
Financial Stat est Disclosures The diSC110SUres i-nade, in the niotes to the consolidated finati;cial
statements appear r clear, tieutrall and cons,istent,with our undei-standing
ofthe ent'ity and the arnoUnts presented in the consolidated financial,
Statei-nents.
Other Mat,lters
............................................................................................................. .....................................................................................................--1111111111111111-............
Management Representations
We have requested certain written, representations from miatizgernent,which represent a confirmation of clertain
ora,l rep re,ntati otis given to, us during the course Of Ur audit...This letter, priovidied by management, has been,
inClUded as, additional material to,this,replort.,
go
AUditor Independence
We confirm,to the Audit Committele that we,are ire dlependerpt of the Municipality and Water Utility. Our letter to
ao
the Audit Committee di'ISCUSS'ing our indepiendence is included as, part of the additional t-naterials ttached tthis
report.
........... ....... .......
Cape Breton Regional Municipality- March 31,2023 Audit Findings 4
93
A�ppend 'ix A mm MN� P Aud,'Iot, P,rocess
....................................
Our audit was carried out in accordance with Canadian glen erally accepted auditing standards, and included a
year
I -it u
acconting and rnan�age ment repoiling sys,ternsa
with ech materiall end balance, key
review of all, siginificai
transaction, and other events considered significant to the consolidated finianicial statements considered
separately,.
Our audit process,focused on understanding the controils utilized in managarea nt's reporting systems to the
extent rye ceissary to identify overall and specific financial reporting. risks.,This risk assess,rnent enabled us to
concentrate our audit procedures on the areas,where differences were most likely,to,arise.Our as,sessImentwas
nolt, nor was it intended to, be, Sufficient'to conclude on the effectiveness or efficiency of internal controls.
During the course of our audit,we 1ave.-
61 Exarnined, on a test basis, eviden,ice supporting the arniolutits and disclosures in, the,consolidated financial
statements,
0
Assessed the accounting principles used and significant estimates made by man agernent,-
Obtnan
aied understanding of'the Municipality and its etiviron merit,the applicable financial reporting
ffor rarneworknd athe MUnicipalify's systern of int control (regardless of whether we relied on thei�-n
the put-pose,of the audit), slufficient to identify and assess the risks of material misstatement of the
consolidated financial statements andto design and perform audit procedures,
Reviewed and as,s,essed those accountin,g stee s deemed neces,sary to support our audit opinion.
Evaluated the overall consolidatied financial statement,presenttion;
Performed ubsequent events r iew with man,agilernient,
0 Reviewed and assessed the status of contingencies, commitments and guarantees; and
R
-e to envi t-on mental flabilitiels.eviewed and as,sessied exposui
We have obtained'written representations frommaniagement, included as additional retrial s followings this
report, in order to,confirm oral representations given to, us and redUce thie possibility of misunderstanding.
Specifically, we have obtained written confirmation of'significant representations pr id d on, i-nattersthatare:
Directly,related to, items that are material, efther individually or in theaggregate,to the,consolidated
financial statements"
Not directly related to items that are male,rial to,the,consolidated financial statements, but are significant,
either inidividually orin'the aggregate,to the en cement; and
Matters rel evant,to managementjudgmet s or est�ima,tes that are rnaterial, either individuailly or in the
aggreg:ate,,, to the consolidated financial staternents.
,Cape Breton Regional Municipality- Marich,31,2023,Audit,Findings 5,
94
ign'if'ican e r
Rolsk Areas and Res Plonses
Si I gn I ificant Risk Areas and Responses
................
Revenues Tax and water utility revenue
MINP Peii-formed substantive,analytical p-olicedUres,
Revenue is a presurned fraud risk and theil-lefore as well asa test of'details using a random selection
considered a significant risk. biasied on a,sign,ificanI�risk factor.
Government grants,transfers, g1rants-ini-heurn and
other revenue
P reviewed supporting docis nientation for
individual items,exceeding olur sign i,ificant va,lue
thireshold as,well as a,test of'cletails of the ret-naining
population using. a randorn selection based on a
significant risk factor.
Management override ofinter nal controls MNP performed a, review ofJouirnal,entries for
urn IUSUal entries and obtained supporting
There is,a prerned fraud risk of managet-netlit documentation for high 'i-isk entries identified,
override of internal control
Ffiigher Risk Areas and �Responses
..............-
milmiIIIIIII I l i NINE
MI
121
I low
Asset retirement o,bligation NiMP obtained manag lement's assessmentof the
liabili . We herecalculated the balance, reviewed
The
liability is subject to significant management assumptions used, suich as inflation and discount
judigemetit alnd,estimate uncei-tainty. rates,, and agreed to collaborative information,
Ac rue employeel benefits MNP obtained rnanagement's assessment of the
liability. 'We,have recalculated the balance, reviewed
The, inn ori-nation usedto calculate portions of thle lassurniptions used, such as inflation and discouint
liability are not complilled an,nual, andtherefore rates, and agreed to,clollaboratl[ve information.
subject to significant managliernentjudgement and
estimate uncertainty.
Cape Breton Regional] Municipality- March 31,2023 Audit Findings 6,
95
Summary
D*Iff'erences,
principalig�, n*� fl* nt
Apple,nd*l,x C um:
..........
Significant Unadjusted Differences
OUT
0
-----------------
- 1 " 15
n dent in the water utility
Uncorrected opening differences, 2051 74 (205,774)
To
tal n u i r ies 3 D5, '
i
Ca
nadian g e a le ra I ly accepted a U diting star ,rd s req u i re tli,at,we req get of ma rent aril the Audit
Commute that identified nadj u t d differences be corrected.We,have made this, request f management,
l oweve'r based on bothu r tit nti nd qualitative cori,siderations, management has to i ed niotto correctthose,
ildentified differences diet rernain Unadjusted.They have represents to us"that in thein udgm nt the luras Biu to
differences .t � s rnrl
We 01Lrrµwith man, agem.. ntJ,.s,.re resent, t.o that tl�r, a na rst,e %f erTM r i ,e are not rl-,int,eri l to'the..
cloti,solidated financial staternenits and, accordingly, these unadjusted diffe nc havie no, effect on, olutm
Independent Auditor0 Report.
Cape Brietion RegionalMunicipality- March,31,20'23 Audit Findings
96
Draft Independent, Aud 't,or's, Report
S Attached,)
Cade Breton Regional Municipality- March 31,2023 Audit Findings
97
Independent Auditor's Report A41VP
To Her worship the Mayor and Members of Council of Cape Breton Regional Municipality:
Opinion
We have audited the consolidated financial statements of Cape Breton Regional Municipality and its subsidiaries(the
"Municipality"),on pages 2-26,which comprise the consolidated statement of financial position. at March 31,2023,
and the consolidated statements of financial activities,changes in net debt and cash flows fo.r.-the"Yeaf then ended,
and notes to the consolidated financial statements, including a summary of significant acc .un n'g...policies.
In our opinion,the accompanying consolidated financial statements present fairly,in 6W. material respects,the
consolidated financial position of the Municipality as at March 31,2023,and the result :. f its::consolidated financial
position,changes in its net debt and its consolidated cash flows for the year thea:' dein accordance with Canadian
public sector accounting standards.
Basis for Opinion
We conducted our audit in accordance with Canadian generally accepted: .i#ing standards.Our responsibilities
under those standards are further described in the Auditor's Resp :t� .i ilities for the Audit of the Consolidated
Financial Statements section of our report.We are independent of the-Mu"rii ipality in accordance with the ethical
requirements that are relevant to our audit of the consolidated%fi an i l.'stak ements in Canada,and we have fulfilled
our other ethical responsibilities in accordance with these req iTer ents.'- e believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis::-fr:.our.:oPinion.
Other Matters-Supplementary Information
of audit was conducted for the purpose of forming::--'a. :..o.,pinion on the consolidated financial statements taken as a
whole,The supplementary information included o'n' pa--g' 7 -33 is presented for the purposes of additional
information and is not a required part of the: 0.1J.6 d financial statements.Such supplementary information has
been subjected to the auditing procedures'- 'pp ied.bonly to the extent necessary to express an opinion on the audit
of the consolidated financial statements.%a.s.a wridl .
Responsibilities of Management nd Those Larged with Governance for the Consolidated Financial
Statements
Management is responsible dor the':'-:p and fair presentation of the consolidated financial statements in
accordance with Cana di.a-n pu 1i'c.:sector accounting standards,and for such internal control a management
determines is necessar i b"ienab.le the preparation of consolidated financial statements that are free from material
misstatement,whether due t :: ra d or error.
In preparing 4.he"con bIidated financial statements, management is responsible for assessing the Municipality's ability
to continue a '6`' c�..ing concern,disclosing,as applicable,matters related to going concern and using the going
concern basis.-o accounting unless manager ent either intends to liquidate the Municipality or to cease operations,
or has nose 01
c.-Aternative but to do so.
-.3hose' 'charcied with governance are responsible for overseeing the Municipality's financial reporting process.
MNP LLP
Commerce Tower 1 Dorchester t,,Suite SOO PCS Box 1,Sydney , B1P 6G9 T.902.5 .3 �0 �: 02.S64.6062
D PRAXITY'
mpa,ratM;liks4u Gr4ba71Y 98
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a Wr 61e,-:.
are free from material misstatement,whether due to fraud or error,and to issue an auditor's report that includes o r,..:
opinion.Reasonable assurance is a high level of assurance,but is not a guarantee that an audit conducted i ��%:::'%
accordance with Canadian generally accepted auditing standards will always detect a material misstatement--' r en it'.
exists. Misstatements can arise from fraud or error and are considered material if, individually or in thea 'r gar,-
they could reasonably be expected to influence the economic decisions of users taken on the basis of j.he e
consolidated financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards,we ex rde.:.pr• fessional
judgment and maintain professional skepticism throughout the audit.we also:
• Identify and assess the risks of,material misstatement of the consolidated financial st t .r ents,whether due
to fraud or error,design and perform audit procedures responsive to these risk',adbtair audit evidence
that is sufficient and appropriate to provide a basis for our opinion.The.r� of:`,-ot-:fete ting a material
misstatement resulting from fraud is higher than for one resulting from.. rr if:r'a. ..-fraud may involve collusion,
forgery, intentional omissions,misrepresentations,or the override of:int 0al control.
• Obtain an understanding of internal control relevant to the audit in"O''rder to-' esign audit procedures that
are appropriate in the circumstances, but not for the purpose of prey i.h an opinion on the effectiveness
of theMunicipality's internal control.
• Evaluate the appropriateness of accounting policies used acid-the' -r onableness of accounting estimates
and related disclosures,made by,management.
• Conclude on the appropriateness of management's use of th.e:.g o ing concern basis of accounting and, based
on the audit evidence obtained,whether a material::.-unc rt .i..nki i
t --. s related t events or conditions that
may cast sig nificant doubt on the i lunicipaIity's .biiity t 63%ntinue as a going concern.if we co clud e that a
material uncertainty exists,we are required to.cera att , ion in our auditor's report to the related
disclosures in the consolidated financial sta�terits ar.if such disclosures are inadequate,to ,modify our
opiNon.Dur conclusions are based on the` u.dit i er�ce obtained up to the date of our auditor's report.
However,future events or conditions may.cus'eAhe Municipality to cease to continue as a going concern.
• Evaluate the overall presentation,str. t :r e and"content of the consolidated financial statements, including
the disclosures,and whether the consolidated financial statements represent the underlying transactions and
events in a ,manner that achieves fai r`p:'res.entation,
Obtain sufficient appropriate audit:- ide'n e regarding the financial information of the entities or business
activities within the Municipality to x Gress an opinion on the consolidated financial statements.we are
responsible for the dire t n,supervision and performance of the gaup audit.We remain solely responsible
for our audit opinion.
We communicate with..thos ::. arg d with governance regarding,among other ratters,the planned scope and
tuning of the audit and'.:.: -igrnific rit."audit findings,including any significant deficiencies in internal control that we
identify during our audit.
ydneyj-::-1 vp is
Chartered Professional Accountants
99 MNP
Independent Auditor's Repo Aflpip
To Her Worship the Mayor and Members of Council of Cape Breton Regional Municipality Water Utility:
We have audited the financial statements of Cape Breton Regional Municipality Water Utility(the" I ter Utility")i
which comprise the statement of financial position as at March 31,2023,and the statements of financial..activities,
operating fund surplus,change in cash-depreciation reserve,accumulated allowance for depreciation,n'v"'e trnent in
capital assets, special reserve and cash flows for the year thea ended,and notes to the financi0statements,including
a su m mary of significant accounting policies.
In cur opinion,the accor panying financial statements present fairly,in all ,material res . is t fi�iancial position of
....
the Water Utility s at March 31,2023,and the results of its financial performance and'..ias.h fl ws for the year then
ended in accordance with the Accounting and Reporting Handbook for Water Utilities.:J.n lova Scotia.
Basis for Opinion
Without modifying our opinion,we draw attent o n to Note 1 to the finance-1 statements which describes the basis of
accounting.We conducted our audit in accordance with Canadian gene'rally accepted auditing standards.Our
responsibilities under these standards are further described in the Apditd ' ..:l ponsibilitias for the Audit of the
Financial Statements section of our report.We are independent of:tFi: -.Water-Utility in accordance with the ethical
requirements that are relevant t our audit of the financial state %ments In:Canada,and we have fulfilled our other
ethical responsibilities in accordance with these requirements::-W e believe that the audit evidence vire have obtained
is sufficient and appropriate to provide a basis for our opinion....
Responsibilities of Management and Those hara .:::.with" o ernance for the Consolidated Financial
Statements
Management is responsible for the preparation and ani .: resentation of the financial statements in accordance with
the Accounting and Reporting Handbook l for 11 t UiOities in Nora Scotia,and for such internal control as
management determines is necessary to e b.l the""'reparation of financial statements that are free from material
misstatement,whether due to fraud or eirr.or.
In preparing the financial staterner fs, management is responsible for assessing the Water Utility's ability to continue
as a going concern,disclosing,as,.' pli able,matters related to going concern and using the going concern basis of
accounting unless mana.gem nt .ithe::r htends to liquidate the Water Utility or to cease operations,or has no realistic
alternative but to do s '."
These charged with governance.are responsible for overseeing the Water Utility's financial reporting process.
Auditor's Re' rn:.ibilities for the Audit of the Financial Statements
MNP LLP
Commerce Tower 1S Dorchester St,,Suite Soo PO Box 1,Sydney NS, BlP 6G9 T:902.S39.3900 :902.564.6062
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
,material misstatement,whether due to fraud or error,and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance,but is not a guarantee that an audit conducted in accordance with
Canadian generally accepted auditing standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered ,material if,individually or in the aggregate they..:.:::.... ....
could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with Canadian generally accepted auditing standards,we exercise prof .ir .::::
judgement and maintain professional skepticism throughout the audit.We also:
0 Identify and assess the rids of,material misstatement of the financial statements,whether due to fraud or
error,design and perforin audit procedures responsive to these rids,and obtain audit.: videne that is
sufficient and appropriate to provide a basis for our opinion.The risk of not detecting.-a.m t tial
misstatement resulting from fraud is higher than for one resulting from error,as f'raud ray:Anvolve collusion,
forgery, intentional omissions, misrepresentations,or the override of internal
0 Obtain an understanding of internal control relevant to the audit in order to deign..audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing a ::opn on the effectiveness
of the Water Utility's internal control.
• Evaluate the appropriateness of accounting policies used and the rea ablen 's of accounting estimates
and related disclosures made by management.
Conclude on the appropriateness of management's use of the going ,'.ern basis of accounting and, based
on the audit evidence obtained,whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Water Utility's ability to tin:i` :.:as:.:a going concern. If we conclude that a
material uncertainty exists,vire are required to draw attention''I n o r auditor's report to the related
disclosures in the financial statements or,if such disclosures are:.:: adequate,to modify our opinion.Our
conclusions are based on the audit evidence obtained p.:to.th .aye of our auditor's report, However,future
events or conditions may cause the Water Utility to.cease to'.
the
as a going concern,
a Evaluate the overall presentation,structure and:: ntent: f the financial statements, including the disclosures,
and whether the financial statements represe i-!:the u" dying transactions and events in a manner that
achieves fair presentation.
0 Obtain sufficient appropriate audit evideh e..�`r ardin the financial information of the entities or business
activities within the Water Utility to e r-ess 6.n.: pinion on the consolidated financial statements.We are
responsible for the direction,super l io n-pnj... erforrnance of the group audit.We remain solely responsible
for our audit opinion.
We communicate with those charged with g6vernance regarding,among ether matters,the planned scope and
timing of the audit and significant.. �udit findings,including any significant deficiencies in internal control that we
identify during our audit.
Sydney, lour ci.a
Chartered Professional Accountants
101 MNP
Management
................ ...........................
(See A Attached)
Cees Breton Regional Municipality_ Meech 3,1,2023 Audit Findings
102
Cape Breton Regional Municipality
320 Esplanade
Sydney, NS B1P
October 28, 2024
MNP LLP
Commerce Tower 15 Dorchester St.
Suite 500 PO Box 1
Sydney, Nova Scotia BlP
To Whom It May Concern:
in connection with your audit of the consolidated financial statements of Cape Breton Regional Municipality(the
'TMunicipaiity") as at March 31, 2023 and for the year then ended,we hereby confirm to the best of Our knowledge
and belief,the following representations made to you during the course of your audit.
We understand that your audit was made in accordance with Canadian generally accepted auditing standards.
Accordingly,the audit included an examination of the accounting system, controls and related data, and tests of
the accounting records and such Other auditing procedures as you considered necessary in the circumstances, for
the purpose of expressing an Opinion on the consolidated financial statements.We also understand that such an
audit is not designed to identify, nor can it necessarily be expected to disclose, misstatements, non-compliance
with laws and regulations, fraud or other irregularities, should thea be any.
Certain representations in this letter are described as being limited to matters that are ,material. An item is
considered material, regardless of its monetary value, if it is probable that its omission from or misstatement in the
consolidated financial statements would influence the decision of a reasonable person relying on the consolidated
financial statements-
Financial
tatements_Finan ial Statements
1. we have fulfilled Our responsibilities, as set Out in the teras of the audit engagement letter dated July 6, 20231
for the preparation and fair presentation of the Municipality's consolidated financial statements in accordance
with Canadian public sector accounting standards.we believe these consolidated financial statements are
complete and present fairly, in all material respects,the financial position of the Municipality as at
March 31, 2023 and the results of its operations and its cash flows, in accordance with Canadian public sector
accounting standards.
. All transactions have been recorded in the accounting records and are reflected in the consolidated financial
statements, and are reported in the appropriate period.
. We acknowledge that we are responsible for the accounting policies followed in the preparation of the
Municipality's consolidated financial statements.Significant accounting policies, and any related changes to
significant accounting policies, are disclosed in the consolidated financial statements.The selection of
accounting policies is appropriate in accordance with the requirements of Canadian public sector accounting
standards, and are applied consistently throughout the consolidated financial statements.
103
. All significant judgments made In making the accounting estimates have taken into account all relevant
information of which vire are aware.
S. The selection and application of the methods, assumptions ns and data used in making the accounting estimates
are consistent and appropriate.
The assumptions relevant to accounting estimates and disclosures appropriately reflect our intent and ability to
carry Out specific courses of action on behalf of the entity.
'. Disclosures related to accounting estimates, including disclosures describing estimation uncertainty, are
complete and are reasonable in the context of Canadian public sector accounting standards.
. No subsequent event requires adjustment to the accounting estimates and related disclosures included in the
financial statements.
. We are aware of and concur with the contents and results of the attached journal entries prepared by you,and
accept responsibility for the consolidated financial statement effects of the entries.
10. We believe the effects of those uncorrected consolidated financial statement differences aggregated by you
during the audit are immaterial, both individually and in the aggregate, to the consolidated financial
statements taken as a whole. A summary of these differences has been attached to this written representation.
11. Related party relationships and transactions have been appropriately accounted for and disclosed in
accordance with the requirements of Canadian public sector accounting standards.
12. All events or transactions that have occurred subsequent to the statement of financial position and for which
Canadian public sector accounting standards require adjustment or disclosure have been adjusted or disclosed
appropriately in the consolidated financial statements.
1 . All plans or intentions that may affect the carrying value or classification of assets and liabilities are
appropriately reflected in the consolidated financial statements in accordance with Canadian public sector
accounting standards.
2
104
1 . All liabilities, both known and contingent, requiring recognition or disclosure in the consolidated financial
statements in accordance with the requirements of Canadian public sector accounting standards have been
adjusted or disclosed as appropriate.
15. All Outstanding and possible claims,whether or not they have been discussed with legal counsel, have been
disclosed to you and are appropriately reflected in the consolidated financial statements.
16. All assets,wherever located, to which the Municipality had satisfactory title at the year-end, have been fairly
stated and recorded in the consolidated financial statements. The assets are free from hypothecation, liens and
encumbrances, except as noted in the consolidated financial statements.We have disclosed the nature and
carrying amounts of any assets pledged as collateral. All assets of uncertain value, and restrictions imposed on
assets, are appropriately reported in the consolidated financial statements.
17. All aspects of laws regulations or contractual agreements, including non-compliance, are appropriately
reflected in the consolidated financial statements.
1 . All cash accounts have been appropriately recorded in the consolidated financial statements and all teras and
associated conditions have been disclosed to you in full.we have provided you with the most current banking
agreements.
19. Accounts and contributions receivable are correctly described in the records and represent valid claims as at
March 31, 2023. An appropriate allowance has been made for losses from uncollectible accounts and for costs
or expenses that may be incurred with respect to sales made or services rendered.
0. Inventory is correctly recorded in the consolidated financial statements in accordance with the requirements of
Canadian public sector accounting standards. All required provisions for slaw-moving, obsolete, and
unsaleable stock have been recorded. Inventory does not include any goods on consignment to others or
goods invoiced to customers.
1. All charges to tangible capital assets and additions under capital leases represent capital expenditures. No
expenditures of a capital nature were charged to operations of the Municipality. Amortization of tangible
capital assets and equipment under capital leases has been recorded according to our best estimates of their
useful lives.All events or circumstances giving rise to impairments are appropriately reflected in the
consolidated financial statements.
. Government transfers have been recognized when the transfer is authorized, and all eligibility criteria have
been met.
. All long-term debt and capital lease obligations has been appropriately recorded in the consolidated financial
statements. All payments and accrued interest have been accounted for.The current portion of long-term debt
and capital lease obligations is appropriately classified. All terms and conditions have been fully disclosed in
the consolidated financial statements.We have provided you with the most current debt and financing
agreements.
. Revenue has been recognized Only where sales have been made and items delivered, or services rendered, and
the amounts have been collected or are collectible. Revenues do not include any amounts arising from
consignment sales or from any Other transaction from which the Municipality is not entitled to the proceeds.
105
S. We have identified all financial instruments, including derivati
disclosed to you.
. The previous year's representation letter dated October 2S, 2022 is still applicable to the prior year's
consolidated financial statements, and no ratters have arisen that require restatement of those consolidated
financial statements.
. There are no discussions with your firms personnel regarding employment with the Municipality.
Professional Services
. We acknowledge the engagement letter dated July 6, 2023+which states the terms of reference regarding your
professional services,
. elle are not aware of any reason why MNP LLP would not be considered independent for purposes of the
Municipality's audit.
Sincerely,
Cape Breton Regional Municipality
Signature Title
107
Cape Breton Regional Municipality Hater Utility
320 Esplanade
Sydney, NS 131 P 7B9
October 28, 2024
MNP LLP
Commerce Tower 15 Dorchester St.
Suite 500 PO Box 1
Sydney, Nova Scotia B1P 6G9
To whom It May Concern:
In connection with your audit of the financial statements of Cape Breton Regional Municipality water Utility the
"Water Utility") as at March 31, 2023 and for the year then ended,we hereby confirm to the best of our knowledge
e
and belief,the following representations made to you during the course of your audit.
We understand that your audit was made in accordance with Canadian generally accepted auditing standards.
Accordingly,the audit included an examination of the accounting system, controls and related data, and tests of
the accounting records and such other auditing procedures as you considered necessary in the circumstances, for
the purpose of expressing an opinion on the financial statements.we also understand that such an audit is not
designed to identify, nor can it necessarily be expected to discloser misstatements, non-compliance with laws and
regulations, fraud or other irregularities, should there be any.
Certain representations in this letter are described as being limited to ,natters that are material. An iter,, is
considered material, regardless of its monetary value, if it is probable that its omission from or misstatement ment in the
financial statements would influence the decision of a reasonable person relying on the financial statements.
Financial Statements
1. We have fulfilled Our responsibilities, as set Out in the terms of the audit engagement later dated July 6, 2023,
for the preparation and fair presentation of the hater Utility's financial statements in accordance with
Accounting and Reporting Handbook for water Utilities in Nova Scotia_We believe these financial statements
are complete and present fairly, in all material respects,the financial position of the water Utility as at
March 31, 2023 and the results of its Operations and its cash flows, in accordance with Accounting and
Reporting Handbook for plater Utilities in Nova Scotia.
. All transactions have been recorded in the accounting records and are reflected in the financial statements, and
are reported in the appropriate period.
. we acknowledge that vire are responsible for the accounting policies followed in the preparation of the Water
Utility's financial statements. Significant accounting policies, and any related changes to significant accounting
policies, are disclosed in the financial statements.The selection of accounting policies is appropriate in
accordance with the requirements of Accounting and Reporting Handbook for water Utilities in Nora Scotia,
and are applied consistently throughout the financial statements.
108
4. All significant judgments made in making the accounting estimates have taken into account all relevant
information of which we are aware.
. The selection and application of the methods, assumptions and data used in making the accounting estimates
are consistent and appropriate.
. The assumptions relevant to accounting estimates and disclosures appropriately reflect our intent and ability to
carry Out specific courses of action on behalf of the entity.
. Disclosures ures related t0 accounting estimates, including disclosures describing estimation n uncertainty, are
complete and are reasonable in the context of Accounting and Reporting Handbook for water Utilities in Nova
Scotia.
. No subsequent event requires adjustment to the accounting estimates and related disclosures included in the
financial statements.
. we are aware of and concur with the contents and results of the attached journal entries prepared by you, and
accept responsibility for the financial statement effects of the entries.
1 . we believe the effects of these uncorrected financial statement differences aggregated by you during the audit
are immaterial, both individually and in the aggregate,to the financial statements taken as a whole. A summary
of these differences has been attached to this written representation.
11. Related party relationships and transactions have been appropriately accounted for and disclosed in
accordance with the requirements of Accounting and Reporting Handbook for Water Utilities in Nava Scotia.
12. All events or transactions that have occurred subsequent to the statement of financial position and for which
Accounting and Reporting Handbook for plater Utilities in Nora Scotia require adjustment or disclosure have
been adjusted or disclosed appropriately in the financial statements.
13. All puns or intentions that may affect the carrying value or classification of assets and liabilities are
appropriately reflected in the financial statements in accordance with Accounting and Reporting Handbook for
Water Utilities in Nora Scotia.
2
109
1 . All liabilities, both known and contingent, requiring recognition or disclosure in the financial statements in
accordance with the requirements of Accounting and Reporting Handbook for water Utilities In Nova Scotia
have been adjusted or disclosed as appropriate.
1 . All Outstanding and possible claims,whether or not they have been discussed with legal counsel, have been
disclosed to you and are appropriately reflected in the financial statements.
16. All assets,wherever located,to which the water Utility had satisfactory title at the year-end have been fairly
stated and recorded in the financial statements.The assets are free from hypothecation, liens arra
encumbrances, except as noted in the financial statements.we have disclosed the nature and carrying
amounts of any assets pledged as collateral. All assets of uncertain value, and restrictions imposed on assets,
aro appropriately reported in the financial statements.
17. All aspects of lavers, regulations or contractual agreements, including non-compliance, are appropriately
reflected in the financial statements.
18. All cash accounts have been appropriately recorded in the financial statements and all terms and associated
conditions have been disclosed to you in full.We have provided you with the most current banking
agreements.
1 . Accounts and contributions receivable are correctly described in the records and represent valid claims as at
March 31, 2023.An appropriate allowance has been rade for losses from uncollectible accounts and for costs
or expenses that may be incurred with respect to sales ,made or services rendered.
, Inventory is correctly recorded in the financial statements in accordance with the requirements of Accounting
and Reporting Handbook for Water Utilities in Nova Scotia. All required provisions for slow-,,roving, obsolete,
and unsaleable stock have been recorded. Inventory does not include any goods on consignment to Others or
goods invoiced to customers.
1. All charges to tangible capital assets represent capital expenditures. No expenditures of a capital nature were
charged to operations of the Water Utility, Amortization of tangible capital assets has been recorded according
to Our best estimates of their useful lives. All events or circumstances giving rise to impairments are
appropriately reflected in the financial staternents.
. G overnment transfers have been recognized when the transfer is authorized, and ail eligibility criteria have
been met.
. All long-term debt has been appropriately recorded in the financial statements. All payments and accrued
interest have been accounted for.The current portion of long-term, debt is appropriately classified. All terms
and conditions have been fully disclosed in the financial statements.we have provided you with the most
current debt and financing agreements.
. Revenue has been recognized only where sales have been made and iters delivered, or services rendered, and
the amounts have been collected or are collectible. Revenues do not include any amounts arising from
consignment sales or from any other transaction from which the water Utility is not entitled to the proceeds.
110
5. We have identified all financial instruments, including derivatives, and hedging relationships.These have been
appropriately recorded and disclosed in the financial statements in accordance with the requirements of
Accounting and Reporting Handbook for Water Utilities in Nova Scotia.
. We have identified all asset retirement obligations and the costs associated with the retirement of the
assets have been appropriately accounted for and disclosed in the financial statements in accordance with
Canadian public sector accounting standards..
Information provided
1. We have responded fully to all inquiries made to us and have made available to you:
• A complete record of all financial records that are relevant to the preparation and presentation of the
financial statements, and related data and minutes of the meetings of Council held throughout the year
to the present date as well as summaries of recent meetings for which minutes have not yet been
prepared;
• Additional information that you have requested from us for the purpose of your audit;
• Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit
evidence.
. We acknowledge manager ent`s responsibility for the design, implementation and operation of controls that
have been designed to prevent and detect fraud.
. 1e have assessed the risk that the financial statements may be materially,misstated as a result of fraud, and
have determined: such risk to be lour.
. Where the impact of any frauds or suspected frauds, and non-compliance or possible non-compliance with
laws and regulations, has a ,material effect on the financial statements,vire have disclosed to you all known
significant facts relating thereto, including circumstances involving management,nt, employees having significant
roles over controls, and others.We have ,made known to you any allegations of fraud or suspected fraud
communicated by employees, former employees, analysts, regulators and others.The effects of such events, if
any, are properly presented in the financial statements.
. We have disclosed to you all deficiencies in the design or operation of internal controls over financial reporting
of which vire are aware.
. We have disclosed to you all aspects of laws, regulations or contractual agreements that may affect the
financial statements, including non-compliance.
, We have disclosed to you the identities of all related parties to the Water Utility and all related party
relationships and transactions of which we are aware.
. We have no knowledge of side agreements (contractual or otherwise)with any parties that have not been
disclosed to you.
. The previous year's representation letter dated October 25, 2022 is still applicable to the prior gear's financial
statements, and no matters have arisen that require restatement of those financial statements.
111
1 . There are no discussions with your firm's personnel regarding em p I oyment with the Water Utility.
s
112
Professional Services
1. We acknowledge the engagement letter dated July 6, 2023+which states the terms of reference regarding your
professional services.
. We are not aware of any reason why MNP LLP would not be considered independent for purposes of the
Water Utility's audit.
Sincerely,
Cape Breton Regional Municipality Water Utility
Signature Title
6
113
Ind,ependence C',om� m�unicat'i'on
(See
Cap
Breton RegionalMunicipality mm- March 31,2023 Audit,Findings i 1
114
A41VP
October 28, 2024
Audit committee
Cape Breton Regional Municipality
320 Esplanade
Sydney, NS B1P 7
Dear Sirs/Mesdames:
We have been engaged to audit the consolidated financial statements of Cape Breton Regional Municipality(the
"Municipality") as at March 31, 2023 and for the year then ended.
CAS 260 Communicotion With Those Charged With Govemoncerequires that we communicate with you ratters that
are significant to our engagement. One such matter is relationships between the Municipality and its related entities or
persons in financial reporting oversight roles at the Municipality and MNP LLP and any affiliates "M P'J that, in our
professional judgment, may reasonably be thought to bear on our independence. in determining which relationships
to report,the Standard requires us to consider relevant rules and related-..interpretations prescribed by the appropriate
professional accounting body and applicable legislation, covering so. h"rttrs a :
a Holding a financial interest, either directly or indirectly,:::,in a lient;
b Holding a position, either directly or indirectly,that gig es- right or responsibility to exert significant
influence over the financial or accounting policies of a cli ri or::.a related entity;
c Personal or business relationships of immediate f m ly,cl se relatives, partners or retired partners, either
directly or indirectly,with a client or a related entity,
d Economic dependence on a client;and
( Prevision of non--assurance services in a. Jti' : to th ::" edit engagement.
We are not aware of any relationship between the"M 'n' i. ipality and MNP that, in our professional judgment, may
reasonably be thought to bear on our int r��c e,ihich have occurred from November 7, 2022 to
October 28, 2024.
We hereby confirm that MNP is independent with respect to the Municipality ithin the meaning of the Code of
Professional Conduct of the Chartered Professional Accountants of Nova Scotia as of October 28, 2024.
The total fees charged to the Municipality during the period from November 7, 2022 to October 28, 2-024 for audit
services were $7S,000 and for indirect tax services were $S,000.
This report is intended solely for the use of Audit committee, management and others within the Municipality and
should not be used for any other purposes.
Sincerely,
MNP LLP
Commerce gouger 15 Dorchester St.,Suite SOO PCS Sax 1,Sydney X15, B1P 6G9 T.902.539. 900 F:902.564.6062
Ul 115