Clean audit for municipality
The Municipality of Crowsnest Pass received a clean audit opinion for its 2025 financial statements, with the auditor telling council the municipality remains in a strong financial position.
Dylen Starman, CPA with Metrix Group LLP, presented the 2025 audited financial statements during the April 28 regular council meeting. Metrix Group is new to the municipality as auditor this year, though Starman told council the firm has experience with municipal audits across Alberta.
Starman said the audit provides reasonable assurance, not absolute assurance, that the statements are free of material misstatement. He said the municipality reports under generally accepted accounting principles and Canadian public sector accounting standards.
“We’ve never provided absolute assurance,” said Starman.
He said the role of the auditor is to review the statements, complete audit procedures and give council an opinion on whether the financial information is materially accurate.
Starman said the municipality received an unmodified audit opinion.
“Overall, it was a good year,” said Starman.
He said the audit did not identify anything indicating the statements were materially misstated.
“We believe that those financial statements represent you guys accurately and are not materially misstated,” said Starman.
One accounting change was implemented this year related to public sector accounting standard 3450. Starman said the change affected how some investments are reported, specifically principal protected notes with embedded derivatives. The change resulted in a new statement of remeasurement gains and losses.
The impact was $15,517, which Starman said was not significant, but he said it was better to implement the standard before the amount becomes larger in future years.
Starman said the municipality is in a strong net financial asset position. He said that means the municipality’s financial assets, such as cash, taxes receivable, trade receivables and investments, outweigh its liabilities.
“You guys are sitting in a good position,” said Starman.
He also said the municipality has strong liquidity, with cash and investments remaining relatively high.
Taxes receivable increased compared to the previous year. Starman said that trend is being seen in many municipalities as residents face greater difficulty paying bills on time.
“People are just struggling to pay their bills on time,” said Starman.
The municipality’s allowance for doubtful taxes was removed because the municipality took tax title ownership of one property that had previously been identified. Starman said the property is valued higher than the outstanding taxes.
The audit also showed the municipality had about $19 million in unused debt limit.
He said the municipality can service its current debt and remains compliant with debt limits.
Tangible capital asset additions totalled about $3 million in 2025, down from about $11 million the previous year. Starman said the decrease followed a larger year of capital projects, with some projects moving from work in progress into active use.
The municipality also received about $500,000 in contributed assets through development.
Operating revenue was close to budget, coming in about $200,000 off. Starman said net municipal taxes increased, largely due to rising assessment values, which he said is common across the province.
Expenses were also close to budget when amortization is considered. Starman said many municipalities do not budget for amortization directly, which can make budget to actual comparisons look different on paper.
“When you factor in your amortisation. You guys are very close to on budget,” said Starman.
The municipality finished the year with an annual deficit of about $6,000. Starman said that is not a cause for concern.
“This isn’t outside the norm, and it’s nothing to panic about,” said Starman.
He said large surpluses and deficits in municipal statements often relate to capital transfers and grant timing. The previous year included more government transfers for capital projects, which contributed to a larger surplus.
Councillor Doreen Johnson asked about the acquisition of tangible capital assets, while Councillor Darren Nastasi asked about gains on the disposal of tangible capital assets.
Councillor Dean Ward asked about the difference between machinery, equipment and vehicles, along with work in progress and amortization.
Ward asked whether municipalities usually budget for amortization. Starman said it is not common.
“I wouldn’t say it’s very normal,” said Starman.
Ward later praised the presentation, saying it was one of the best audit presentations he had seen.
“Just a comment, I know this is the first year these guys did these. Did the financials first, that was one of the best institutions I’ve seen a great job,” said Ward.
Council adopted the 2025 audited financial statements. Administration said the statements and financial information return had to be submitted to Municipal Affairs by April 30.