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Audited financial statements from 2020 say Collingwood is in 'sound financial position'

Town received $1,330,828 from the COVID Safe Restart Fund to assist in the recovery of lost revenues and increased costs, from the Ministry of Municipal Affairs and Housing
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NEWS RELEASE
TOWN OF COLLINGWOOD
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At the regular meeting of Council held July 19, 2021, Council received the 2020 Audited Financial Statements, which indicates Collingwood is doing well financially.

Despite the challenges facing the municipality during 2020 primarily due to the pandemic, Collingwood received Provincial funding to offset expenses caused by COVID-19. The town received $1,330,828 from the COVID Safe Restart Fund to assist in the recovery of lost revenues and increased costs, from the Ministry of Municipal Affairs and Housing.  

“Council and staff have been very responsive and proactive in addressing the COVID19 pandemic, including providing relief for businesses and residents who may be facing financial challenges. In total, the pandemic has resulted in an approximate $1.37 million shortfall in revenue and additional unbudgeted expense of just over $0.5 million,” says Treasurer Quinlan.  “Council and staff recognized the urgent need to mitigate the impact of these losses and put mitigation measures in place including closure of facilities, redeployment of staff and the reduction of seasonal hiring.”  

The Audit of the Financial Statements for the town is conducted annually and is comprised of the consolidated statements of financial position, and the statement of operations, as well as the changes in net financial assets and cash flow for the year.   

Basis for Opinion from Auditor Baker Tilley: “We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Municipality in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.”  

Overall, when reviewing all the Financial Indicators along with other relevant data, staff confirmed that the town’s indicators have improved in the past few years, and it is in a sound financial position. Over the next several months, staff will be focused on developing a Long-Term Financial strategy including cash management, debt management and asset management planning to ensure continued sustainability for many years.  

“Collingwood is in a very robust financial position and during the audited financial presentation Sue Bragg, our Auditor, pointed out a number of benchmarks that compare us to provincial average. We are far and away above the provincial benchmark when comparing cash and short-term investments as a percentage of our operating expenses and reserves,” says Mayor Saunderson. “These are encouraging signs for Collingwood and Council has passed responsible budgets over the past few years, we have a strong financial record.”

The 2020 Audited Financial Report and previous years’ Audited Financial Reports can be viewed here.

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