Essex in strong financial position, according to financial statement

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Diversity Reporter
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By Sylene Argent, Local Journalism Initiative Reporter, Essex Free Press

The Corporation of the Town of Essex “is in a strong financial position,” Cynthia Swift, Lead Audit Engagement Partner of KPGM LLP, said of Essex’s 2024 financial statements.

Council adopted the 2024 audited financial statements and audited findings for the Town of Essex as presented at the July 21 meeting.

KPMG audited the consolidated financial statements of the Corporation of the Town of Essex, which comprised of the consolidated statements of financial position as at December 31, 2024, of operations and accumulated surplus for the year then ended, of changes in net financial assets for the year then ended, of cash flows for the year then ended, and notes and schedules to the consolidated financial statements, including a summary of significant accounting policies.

KPMG issued its unmodified audit opinion. Its report indicated the accompanying financial statements present fairly, in all material respects.

She noted KPMG had the full cooperation of Essex’s management during the process.

There were no control deficiencies, which speaks highly of management and the good internal controls and processes at the Town, Swift said.

Essex’s financial assets were outlined in the report to be $106,359,710 as of December 31, up from $101,999,283 the year prior.

The only outstanding items to complete the audit was the representation letter that will be sent to her, and the final financial statements from Union Water Supply System.

There was one financial change in accounting policy this past year and that was in respect to the Union Water Supply System. That went from a government unit to a general business entity. The change, Swift said, includes instead of consolidating the Town’s proportionate share of the Union Water System, Essex is now just showing the investment in it.

Essex Free Press files show that is because in August of 2022, the four shareholder municipalities of Essex, Lakeshore, Leamington, and Kingsville approved the undertaking of the adoption of restructuring the business case into a municipal service corporation. That started in January of 2024 with the first approved budget and the transfer of operations of the system from the former board to the new municipal service corporation.

Essex CAO Kate Giurissevich thanked the Finance Department for putting this project together. She noted they spend a large amount of time on this year-end audit.

“It is no small task,” she said.

Giurissevich also spoke of the tangible capital assets, which serve the community, increased $7M at $214,685,635 from $207,295,934 in 2023.

“So, there are investments being made in the Town assets and the replacements of such,” Giurissevich added.

In addition, the Town does have strong internal controls to ensure residents’ assets are safeguarded, she commented.

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