Fixed asset disposition partially responsible for audit discrepancy
May 08, 2012
The city of Lloydminster, Canada, recently received a clean audit for its 2011 financial statements, although significant discrepancies were revealed in its total revenue, according to the Meridian Booster.
Specifically, the city - which operates as a single entity despite being located in two provinces, Alberta and Saskatchewan - had an unaudited revenue of approximately $54.5 million, while its audited revenue stood at around $73.2 million. The difference is believed to be due to mismatched grant transaction timing, as well as "a one-time gain on the disposition of fixed assets
to ATCO Electric," according to the news source.
"We had increases in provincial grants from the previous year, we had additional money from sales of city lots and we had additional money from the one-time payment for the street light bases," said Don Newlin of Wilkinson Livingston Stevens, the accounting firm that conducted the audit.
In March, the Lloydminster city council held the first reading of a $20 million loan that would help fund the construction of a new fixed asset
. The proposed Infrastructure Services Operations Center is expected to cost around $40 million, according to a separate article from the news source.