The MGA s. 268.1 requires the municipality to collect and deposit revenues, keep accurate financial records and that actual revenues and expenditures are compared to budget and reported to council as often as council directs. Financial reports to council should show sufficient departmental activity to provide enough information to understand the financial results of municipal operations.
Council members should receive training on how to read and interpret financial statements at the beginning of each term. Warner council acted in an irregular manner where they did not provide formal direction by policy or resolution to specify the frequency of financial reporting to council in accordance with the MGA s. 268.1(b). Council meeting agendas show that council did not receive regular revenue and expense reports with a comparison to budget in accordance with the MGA requirements. The CAO confirmed that monthly financial reporting to council did not include a revenue and expense report with a budget comparison.
Past agendas show that council typically received only a monthly bank reconciliation and cheque listing as financial reports. This low level of financial reporting lacks revenue and expense reports with a comparison to budget and is not sufficient for a municipal council to provide overall financial oversight or decision-making purposes. This low level of financial reporting to council focused on cheque details and did not align council’s financial focus at a higher level, with big picture budget comparisons
This excerpt from the 2018 Warner Municipal Inspection Report 1 highlights current issues with our villages financial reporting.
If you compare the financial reports from Barons to those of Carmangay, you can clearly see the level of detail that is lacking and in contravention of MGA S 268.1 2
This in conjunction with our budgeting practice of artificially inflating revenues and expenses, leaves council unable to provide any financial oversight.
and again, my fellow councillors do not seem to be concerned about these issues.