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

Council for the Town of Essex adopted the audited financial statements and audited findings report that KPMG LLP prepared and presented for the municipality.

Cynthia Swift, Lead Audit Engagement Partner for KPMG LLP, presented the 2025 Audited Financial Statements and Audit Findings Report for the Town of Essex at the July 20 meeting.

Annually, the audit of the Town’s finances is a big undertaking, Director of Corporate Services, Kate Rowe, noted, adding a lot of work gets done behind the scenes by Town staff to reconcile all of the accounts and match the numbers to the records to be ready for the auditors. And then, staff works with them through the fieldwork to provide the information needed, so the audit reports can be completed.

The Municipal Act requires the Town to undertake an audit every year. It supports accountability, transparency, and reporting, Rowe noted.

The 2025 financial statement differs from previous years, as this one contains the sale of E.L.K Energy, Rowe noted.

Swift said there was a successful audit, and she did receive the full cooperation of Town management.

Some of the key highlights in the report include the materiality number – set at $1.4m – to ensure there are no greater errors than that number. It also helps test and sample various accounts.

KPMG, Swift said, has completed the audit. With respect to the audit findings report, Swift said there were no audit differences that were corrected or uncorrected.

“That just goes to show how good the records are before we come out to do the audit,” she said.

The Town of Essex, Swift feels, is in “great financial position.” It has a total accumulated surplus of $305m, of which a significant portion is infrastructure and tangible capital assets.

Included in the accumulated surplus are a number of reserves and reserve funds. Those balances increased by $28m in 2025.

Mayor Sherry Bondy said it is a pleasure to hear this positive news each year.

She did turn to administration to ask about why it seems the Town’s operating surplus availability each year decreases; Rowe explained annual budgets are crafted to even out. That is a requirement of the municipal budgeting process: that the revenues and expenses equal. In an ideal world, the Town would spend exactly what it budgeted, but there could be various reasons why a surplus or deficit may be noticed.

Over the past few years, Rowe added, the Town surplus has decreased. In 2025, the Town surplus was around $289,000, which was slightly lower than the previous two-years. She believes that speaks to the strong project controls the Town has in place.