Yorkton council approves 2024 audited financial statements

YORKTON — Yorkton council has approved the city’s 2024 draft audited financial statements and authorized the director of finance to sign the representation letter, as well as create the final 2024 financial statements.

Amber Matechuk, city controller, explained that the audited financial statements are part of a required process.

“In order to prepare the annual financial statements, the city undergoes a financial audit. Our audit is performed by the firm Baker Tilly. For the year ended Dec. 31, 2024, they have reviewed our processes and financial records,” she told the regular meeting of Yorkton council Monday.

“Per audit standards, the official financial statements for the city cannot be issued until the auditor receives approval from council. The auditors perform test procedures up to the date of approval, in order to include any subsequent events. So once council approves the draft statements (as presented in this report) the auditors can then issue the final financial statements.”

The independent auditor’s report was presented by Brittney Maddaford of Baker Tilly.

Maddaford began by outlining the responsibilities of the parties involved in the audit process.

“Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement whether due to fraud or error. Council is responsible for overseeing the municipality’s financial reporting process. The auditor’s objective is to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion,” she told council.

Maddaford said the report was a positive one.

“The audit opinion presented on the independent auditor’s report is that the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the city as at Dec. 31, 2024, and the consolidated statement of operations, change in net financial assets and cash flow for the year then ended, in accordance with Canadian public sector accounting standards,” she said.

“This essentially means that we have provided a clean audit opinion on the financial statements for the city.”

Matechuk said that new for 2024 were a number of administrative changes and modifications to the financial statements and how they are presented. Some schedules from prior years were removed, and some account groupings and categories were changed to follow the financial statement template prescribed by the Ministry of Finance. These changes were made at the recommendation of the auditor to be more in line with the standards.

“Another significant change is the inclusion of the Yorkton Housing Corporation (YHC) in a full consolidation with the city’s financial statements. In prior years, we had just adjusted our equity value in YHC, but as a wholly controlled organization of the City of Yorkton, consolidation is the proper form,” she said.

On long-term debt, Matechuk noted: “The city’s debt limit as prescribed by the Saskatchewan Municipal Board is $42 million.”

As of Dec. 31, 2024, total external debt sat at $2,306,367.

“This leaves the city with approximately $39.7 million of debt available. However, given that the city obtained new debt financing in 2025 for the York Road project in the amount of $11.36 million, the city’s updated available debt limit in 2025 is $28.3 million,” she said.

The 2024 operating surplus of $1,642,549 was presented with a preliminary year-end report at the regular council meeting of June 23, 2025. This surplus remains unchanged, and all approved departmental transfers have been completed, Matechuk said.

She added that the city has significant investments in its infrastructure, with approximately $219 million allocated to tangible capital assets and capital in progress.

“In the 2024 year alone, the city spent about $16 million on capital projects,” she said. “Some of this work included the York Road reconstruction project, Kinsmen Arena ice system upgrades, airport terminal building construction, traffic signal pole replacements, various Water Pollution Control Plant repairs and upgrades, and fleet equipment purchases.

“A large portion of these capital costs were funded by rollovers and reserves from prior years, as well as external funding sources, grants and donations, in addition to the annual capital budget.”

Matechuk noted the city’s “rainy day fund” grew significantly in 2024 due to the large operating surplus. As of Dec. 31, the balance was $3,425,149.

“This leaves a significant balance that council may choose to allocate towards future projects or initiatives,” she said.

The city is required to submit the approved financial statements by Sept. 1 each year to the Ministry of Finance, as well as to its banks and major creditors.

“This practice ensures compliance with any loan covenants and maintains our good standing with the government in order to qualify for future funding,” Matechuk said.