Financial Highlights
REPORT OF THE INDEPENDENT AUDITOR
ON THE FINANCIAL SUMMARY
To the Reeve and Council of the
Municipal District of Lesser Slave River No. 124
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the
financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditors’ report that
includes our opinion. Reasonable assurance is a high level of assurance,
but it is not a guarantee that an audit conducted in accordance with
Canadian generally accepted auditing standards will always detect a
material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
Opinion
We have audited the accompanying financial statements of the
Municipal District of Lesser Slave River No. 124 (the Municipal District),
which comprise the statement of financial position as at December
31, 2018, and the statements of operations and accumulated surplus,
changes in net financial assets and cash flows for the year then ended,
and a summary of significant accounting policies and other explanatory
information. In our opinion, the financial statements present fairly, in
all material respects, the financial position of the Municipal District as
at December 31, 2018, and the results of its operations and its cash
flows for the year then ended in accordance with Canadian public
sector accounting standards.
As part of an audit in accordance with Canadian generally accepted
auditing standards, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of
internal control.
Basis for Opinion
We conducted our audit in accordance with Canadian generally
accepted auditing standards. Our responsibilities under those standards
are further described in the Auditors’ Responsibilities for the Audit of
the Financial Statements section of our report. We are independent of
the Municipal District in accordance with the ethical requirements that
are relevant to our audit of the financial statements in Canada, and we
have fulfilled our other ethical responsibilities in accordance with those
requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Obtain an understanding of internal control relevant to the audit
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Municipal District’s internal control.
Other Information
Management is responsible for the other information. The other
information comprises the information included in the Annual Report,
but does not include the financial statements and our auditors’ report
thereon. The Annual Report is expected to be made available to us after
the date of this auditors’ report. Our opinion on the financial statements
does not cover the other information and we do not express any form
of assurance conclusion thereon. In connection with our audit of the
financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained
in the audit or otherwise appears to be materially misstated. If, based
on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that
fact. We have nothing to report in this regard.
Evaluate the appropriateness of accounting policies and the
reasonableness of accounting estimates and related disclosures made
by management.
Conclude on the appropriateness of management’s use of the going
concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Municipal District’s ability to
continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditors’ report to the
related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date or our auditors’ report. However,
future events or conditions may cause the Municipal District to cease to
continue as a going concern.
Responsibilities of Management and Those Charged with
Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of
these 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 financial
statements that are free from material misstatement, whether due to
fraud or error. In preparing the financial statements, management is
responsible for assessing the Municipal District’s ability to continue as
a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless
management either intends to liquidate the Municipal District or to
cease operations, or has no realistic alternative but to do so. Those
charged with governance are responsible for overseeing the Municipal
District’s financial reporting process.
Evaluate the overall presentation, structure and content of the
financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and events in
a manner that achieves fair presentation.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
Chartered Professional Accountants
EDMONTON, ALBERTA APRIL 10, 2019
22