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HomeMy WebLinkAboutBAAB #02/18 2017 TRCA Financial Review.pdf2017 TRCA Financial Review Budget/Audit Advisory Board June 8, 2018 Statement of Financial Position and Accumulated Surplus Cash and Investments 37,408 38,985 33,823 27,712 27,915 22,997 26,240 24,018 22,771 20,040 36,411 44,760 34,536 30,093 28,155 26,731 28,056 23,490 18,419 17,392 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 The line chart represents cash and investments The bar chart represents deferred revenue The growth in TRCA’s cash and investment balances is directly correlated to growth in its deferred revenue balances, as per the following 10-year analysis: 6,737 6,692 6,548 6,533 6,549 6,451 6,300 6,350 6,400 6,450 6,500 6,550 6,600 6,650 6,700 6,750 6,800 June 2018 December 2017 December 2016 Investments The green line represents fair value The blue line represents book value TRCA invested $6,500 in the One Fund on September 9, 2016 . The 18-month return on investment (as of May 28, 2018) is 1.3% (Bond: -0.1%, UCB: 1.6%, Equity: 8.9%). TRCA also invested $15,304 in bonds and GIC’s, in a broker managed account, with an average return on investment of 2.11% (ranging from 1.58% - 3.3%). TRCA continually assesses its portfolio performance to determine future investment strategies. Vacation Pay Entitlements TRCA continues to monitor this balance and encourages our staff to take vacation. Management recognizes the need to enforce the vacation policy and has developed a plan to address deviations from the policy. The dark blue bar represents TRCA’s vacation pay entitlement liability as of December 31 of each fiscal year. The light blue bar represents the number of full-time staff on payroll as of December 31 of each fiscal year. 558 533 496 473 470 442 410 401 375 367 2,663 2,461 2,493 2,452 2,300 2,275 2,019 1,881 1,936 1,746 0 500 1000 1500 2000 2500 3000 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 V a c a t i o n e n t i t l e m e n t ( $ ) F u l l - T i m e S t a f f ( # ) 2,077 2,786 1,420 2,386 3,442 3,518 (1,339) (1,849) (3,720) (2,196) (5,000) (4,000) (3,000) (2,000) (1,000) 0 1,000 2,000 3,000 4,000 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 Net Financial Assets For the sixth consecutive year, TRCA’s financial assets exceed it’s financial liabilities, as follows: Net Financial Assets In 2016, TRCA’s Net Financial Assets increased by $1,366, from $1,420 to $2,786 2016 Changes: Net Surplus: $7,933 Tangible Capital Assets: ($6,400) Other Assets: ($167) Total $1,366 In 2017, TRCA’s Net Financial Assets decreased by $709, from $2,786 to $2,077 2017 Changes: Net Surplus: $9,961 Tangible Capital Assets: ($10,450) Other Assets: ($220) Total $709 Tangible Capital Assets 76.9% 10.7% 6.5% 5.9% 74.9% 12.3% 6.1% 6.6% Land Infrastructure Buildings and Improvements Other 2017: Purchases/Contributions: $22,305 Amortization: ($6,865) Proceeds/Loss on Disposal: ($4,990) Total Change: $10,450 2016: Purchases/Contributions: $13,878 Amortization: ($7,374) Proceeds/Loss on Disposal: ($104) Total Change: $6,400 2017: 461,869 2016: 451,419 $ Change: 10,450 % Change: 2.3 In the above infographic, the outer ring represents TRCA’s 2017 actuals and the inner ring represents TRCA’s 2016 actuals. Net Surplus In 2016, TRCA’s Net Surplus increased by $7,933, from $446,993 to $454,926 2016 Changes: Tangible Capital Assets: $6,400 Unfunded Vacation Pay Entitlement: $417 Operating/Capital Reserves: $1,563 Unallocated Surplus/Deficit: ($447) Total $7,933 In 2017, TRCA’s Net Surplus increased by $9,961, from $454,926 to $464,887 2017 Changes: Tangible Capital Assets: $10,450 Unfunded Vacation Pay Entitlement: $352 Operating/Capital Reserves: $228 Unallocated Surplus/Deficit: ($613) Total $9,961 Reserves 2017 2016 Operating $2,755 $3,006 Capital $1,758 $2,348 TOTAL $4,513 $5,354 TRCA’s reserve balance is as follows: The ending operating reserve for 2017 includes the unallocated surplus transfer of $613, which has been proposed for transfer. The ending capital reserve represents funding for unbudgeted tangible capital assets purchases and related expenditures. It is anticipated that any additional surplus available in 2018 will replenish any drawings from reserves identified in the budget Thank you Any questions?