Understanding County Spending & Financial Reports
Municipal financial documents can contain a lot of numbers, accounting terms, and detailed reports.
Understanding a few common documents can make it easier to see where public money is coming from, how it is being spent, and what financial decisions are being presented to Council.
This guide explains common County spending and financial records and what residents may want to look for.
1. Financial Reports
Financial reports provide updates on the County's financial position and financial activity.
Depending on the report, they may include information about revenue, expenses, cash, investments, reserves, and how actual financial results compare with the approved budget.
What to look for:
Look for significant differences between the approved budget and actual results, major financial transactions, changes in revenue or expenses, and explanations provided in the report.
2. Cheque Runs
A cheque run is a report showing payments made by the County during a reporting period.
It may include the vendor or payee, payment amount, and invoice or description information. One payment may include more than one invoice or purchase.
Important to know:
An unfamiliar or unexpected payment does not necessarily mean something is improper. Cheque runs may not provide the full context behind a payment.
What to look for:
Look at who was paid, the amount, and the information provided about the payment. If something is unclear, seek clarification and understand the context before drawing conclusions.
3. Reserves
Reserves are funds the County has set aside to help plan for future projects, major purchases, unexpected costs, or other financial needs.
Some reserves may be intended for a particular purpose or type of expense.
Money may be transferred into or used from reserves through the municipal budget or Council decisions.
What to look for:
Look at which reserve is involved, how much money is being added or used, the reason for the transfer, and the remaining balance when that information is provided.
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4. Capital Spending
Capital spending generally involves major assets or long-term investments such as roads, bridges, buildings, vehicles, machinery, and equipment.
These purchases or projects may be funded through taxes, reserves, grants, borrowing, or a combination of funding sources.
What to look for:
Look at the total project or purchase cost, the source of funding, whether the item was included in the approved budget, and whether additional funding or a change in scope is being requested.
5. Budget vs. Actual
Financial reports may compare the approved budget with the amount actually received or spent.
A difference between the budget and actual amount does not automatically mean there is a problem. Timing, seasonal work, unexpected costs, grant funding, or changes in projects can affect the numbers during the year.
What to look for:
Look for significant differences between budgeted and actual amounts and read any explanation provided. Consider where the County is in the financial year before drawing conclusions.
6. Revenue
Revenue is money received by the County to help fund municipal services, programs, and projects.
Revenue may come from property taxes, grants, user fees, utility charges, investment income, and other sources.
What to look for:
Look at where revenue is coming from, whether significant revenue is higher or lower than expected, and whether one-time funding—such as a grant—is being used for a particular project or purpose.
7. Expenses
Expenses are the costs of providing municipal services, operating County departments, maintaining infrastructure, and carrying out approved programs and projects.
Expenses may include wages, contracted services, materials, fuel, utilities, maintenance, equipment, and other operating costs.
What to look for:
Look for significant changes in expenses, costs that are higher or lower than budgeted, and explanations provided for major differences.
8. Grants and Other Funding
Grants and other funding may help the County pay for projects, programs, or infrastructure.
Some funding may only be used for a specific purpose and may require the County to contribute part of the project cost.
What to look for:
Look at the total project cost, the amount of outside funding, the County's contribution, and whether there are conditions or deadlines attached to the funding.
9. Audited Financial Statements
Audited financial statements provide an annual look at the County's finances and are reviewed by an independent auditor.
They provide information about the County's financial position, revenue and expenses, debt, financial assets and obligations, and other financial information.
What to look for:
Look at the auditor's opinion, significant changes from the previous year, debt and financial obligations, reserve and accumulated surplus information, and the notes to the financial statements.