Kimberley council hears 2025 finanical audit report

Kimberley council hears 2025 finanical audit report

Published 1:21 pm Wednesday, May 13, 2026

Mario Piroddi, BDO Canada LLP, attended the regular meeting of Kimberley City Council on Monday, May 11 to present the audited financial statements for 2025.

“I am happy to report that we will be issuing a clean audit opinion,” Piroddi said. “We’re going to start on your statement of financial position, so a snapshot of all of your assets and liabilities at the end of the year. And to council I will say, get ready for volatility.”

The audit was completed on time and without any deviations from the planned approach.

“I always like to bring that up because what happens when we conduct an audit is that we come out in the fall and winter and we say okay what’s changed with Kimberly and given what’s changed how do we adjust our audit approach so that we can be able to issue our opinion,” Piroddi explained.

“And when we change our audit approach, we also think about what should the documentation and results look like and match it up. If the two match up to the actual results, we’re good. That means that everything’s operating as expected.”

Piroddi emphasized that while the City’s cash and incoming financial assets increased significantly — from $44 million to $69.5 million — much of that money is tied to major capital projects already underway or planned, particularly the wastewater treatment plant project.

Kimberley’s liabilities increased from $20.6 million to to $44.1 million.

“The big swing that we have in there is the grants received for the wastewater treatment plant and so that’s why we see that big jump in your liabilities,” Piroddi said. “But at the end of the day, your net financial asset position, which is a measure of, if we settled all of our obligations tomorrow, what would we have left in the bank, only increased from $18.7 million to $22.3 million.”

Total revenues came in at $33.3 million versus a budget of $48 million, up from $30 million the previous year.

Kimberley spent $11.35 million on capital projects, and the reserve funds continued to grow, reaching $36.35 million.

Expenses totalled $23.5 million, below the $26.4 million budget and only slightly higher than the previous year. Piroddi said there were no concerning budget overruns, with most variances again attributed to project timing and staffing capacity.

The presentation also noted Kimberley’s accumulated surplus now sits at approximately $135 million. However, Piroddi said that nearly $97 million of that figure represents equity in infrastructure and tangible capital assets, not liquid funds available for spending.

The City currently has roughly $2.4 million available in operating and capital fund balances, along with $36.3 million in reserve funds earmarked for specific purposes.

Piroddi closed by praising the City’s finance department for completing the audit process smoothly and on schedule. He said auditors identified no major issues or deviations from the planned audit approach, despite increased scrutiny on grant funding and large capital projects.

Mayor Don McCormick echoed what Piroddi touched on regarding the wastewater treatment plant project.

“The size of the grant and everything associated with that project is so big that it distorts almost everything that it touches inside both the financial statements and pretty much everything else; the asset management planning etc.”

Council had an in-camera discussion following the meeting to discuss the specifics of the audit.