Lacombe County council heard a presentation from the municipality’s official auditor that the 2025 financial report received a passing grade. The presentation was made at the Apr. 23 regular meeting. Submitted

Lacombe County council heard a presentation from the municipality’s official auditor that the 2025 financial report received a passing grade. The presentation was made at the Apr. 23 regular meeting.

Metrix Group LLP’s Jeff Alliston, CPA, CA, presented councillors with the consolidated financial statements for the year ended Dec. 31, 2025. Alliston noted this is the first year Metrix has worked with Lacombe County.

He stated that an official audit confirms whether the financial statements accurately depict the municipality's financial situation. He also pointed out that the auditor works closely with municipal staff, who are responsible for providing all of the information the auditor examines. Alliston also noted that audit work is conducted under generally accepted Canadian accounting standards.

He observed that the audit showed Lacombe County’s finances are healthy and no significant areas of concern were found. Alliston stated, however, that there were a few notes to point out.

The auditor specifically mentioned during his verbal presentation unpaid oil and gas industry taxes owed to Lacombe County.

He stated that the financial situation as of Dec. 31, 2025, was comparable to that of Lacombe County one year prior.

Further, the auditor stated that Lacombe County has no debt and that its net financial position is positive. In fact, Lacombe County is in a surplus situation.

Alliston stated that the audit went smoothly. “We are required under Canadian Auditing Standards to report significant difficulties encountered during the audit,” stated the auditor’s written report. “There are no matters that arose during the course of the audit causing significant difficulties.”

Some of the smaller notes Alliston mentioned regarding the 2025 financial statements included how Lacombe County was classifying investments with a maturity threshold of one year or less, the way Lacombe County was initially recording the amortization of bond premiums and discounts, and clarification over gravel inventories.

“During the audit, we noted that the County had not previously performed formal survey measurements of gravel stockpiles to support the quantities recorded in gravel inventory,” stated the auditor’s report. “Historically, inventory balances were based on internal estimates and tracking rather than independent survey data.

“In the current year, the County obtained third-party survey measurements of gravel pits and stockpiles. As a result of this process, management identified differences between the previously recorded inventory quantities and the surveyed amounts. An adjustment of $207,251 was recorded in the current year to correct the opening gravel inventory balance. Refer to the Uncorrected Misstatements section for details in the audit findings report (pg. 12).

“We recommend that the County continue to obtain yearly survey measurements of gravel pits to support the quantities recorded in inventory. Establishing a consistent process for updating inventory quantities based on survey data will help improve the accuracy of inventory balances and reduce the risk of misstatement.”

It was noted during the meeting that councillors would have a chance to move into closed session directly with the auditor, without staff present. Councillors passed a resolution to enter closed session.

After a few moments, councillors returned to the open meeting. Council approved the 2025 audited financial statements, as amended, to include the 2025 surplus allocation to reserves.