Reading Financial Statements

Financial Position Statement

The Financial Position Statement presents an overview of a municipality's assets, liabilities, and accumulated surplus. It is essential to consider this statement in the broader context of the municipality's long-term financial well-being rather than solely focusing on its current bank balance.

Operations Statement

The Operations Statement provides a comprehensive account of a municipality's revenues, expenses, and financial results for a specific fiscal year or reporting period. It offers detailed insights into the transactions that have influenced the accumulated surplus from the beginning to the end of the year.

Change in Net Financial Assets (Debt) Statement

The Change in Net Financial Assets (Debt) Statement elucidates the discrepancy between the annual surplus or deficit and the alteration in net financial assets (debt). This statement tracks the municipality's expenditure on acquiring tangible capital assets and inventory supplies.

Cash Flow Statement

The Cash Flow Statement identifies the sources of cash inflow, demonstrates the utilization of cash, and provides a breakdown of changes in cash and cash equivalents since the previous reporting period.

• A Guide to Reading Municipal Financial Statements