CAO blames stalled audit for 58 week delay

The Village of Lions Bay has finally released the 2023 Annual General Report, more than a year after its June 30, 2024 due date.

The report is available online at the Village website, along with the Audited financial statements and the Statement of Financial Information (SOFI) for the same year.

Chief Administrative Officer (CAO) Ross Blackwell said the principal reason for the delay was the late 2022 audit, "which was delayed due to some contentions in Council regarding the findings of the audit performed by BDO."

"The 2023 annual report was due June 30, 2024. With a standard timeline, that would require publication of the annual report at least 14 days earlier for public inspection prior to consideration at a council meeting or other public meeting," he said. "The audit for the year ended December 31, 2023 was not completed until March 2025, resulting in the delay."

Both the 2023 audit and SOFI report were posted to the website last March.

Blackwell noted that BDO resigned after issuing the 2022 audit and that afterwards, the Village had "significant difficulties in identifying an auditor that was willing to undertake the work", with the knock-on effect for 2023 and 2024 resulting in late filings.

Back in 2024, long-term resident Gail Craig, exasperated by the lack of public information about the 2022 audit, filed a Freedom of Information (FOI) request that resulted in the public release of the 2022 BDO management letter in May of that year.

The letter raised concerns about Village accounting practices, financial statements and disclosures, highlighting areas that could pose financial risk to the Village. Following the receipt of this report, Council put out a Request for Proposal for a new auditor, marking an end to the long-term relationship with BDO.

Blackwell says that the 2024 audit was completed by the Village's new auditors MNP in July, and is expected to be presented to Council in September. The 2024 Annual Report was due last June, but he says it will be released after the statutory 14-day public review period for the 2023 report concludes and it is formally presented to Council. He expects the 2024 report to be released for public scrutiny in late September 2025, with the formal presentation scheduled for the October 7 Council meeting.

Looking ahead, the CAO says that interim procedures for the 2025 audit are scheduled for November 2025, and he expects it to be complete by April 2026. If the Village issues the 2025 SOFI and Financial Statements on time prior to May 15, 2026, the 2025 Annual Report could potentially be filed prior to the regulatory deadline of June 30, 2026.

And how can Lions Bay avoid having this three-year run of missed deadlines again? Blackwell says staff have now "taken the appropriate steps to avoid future delays, through planning with the new auditor and coordination/education with Council regarding reporting requirements."

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