City of Surrey's 2023 Annual Financial Report

CITY OF SURREY OVERVIEWS FINANCE DEPARTMENT

The Finance Department provides financial expertise, risk management, internal audit services, advice and guidance to support all City operations. It delivers responsive services and innovative solutions to streamline processes and internal controls to facilitate City-wide gains in efficiencies. In addition to leading process improvements, it sets and maintains practices, policies and standards.

FINANCIAL SERVICES, INCLUDING BUDGET & ANALYSIS Prepares the City’s operating and capital budgets and quarterly financial reports. It reviews various corporate reports for the Senior Management Team and Council. It also provides long-term financial planning and monitors and analyzes expenditure and revenue trends throughout the fiscal year and assists other departments in achieving their financial targets by providing periodic variance analysis reports, thereby ensuring that the City meets its annual budget. FINANCIAL REPORTING Responsible for preparation of annual financial statements and statutory financial reporting. This division is also responsible for presenting an annual Five-Year Financial Plan which establishes financial and programming priorities. PAYROLL Ensures that City employees receive their wages accurately and on time, and with the correct deductions and necessary withholdings. Payroll is also responsible for remitting any withholdings or deductions on behalf of employees to the appropriate authorities. INTERNAL AUDIT AND COMPLIANCE Responsible for examination and evaluation of financial and non financial processes and programs across all City departments with the purpose of providing an independent and objective opinion on processes and the control environment (comprising governance, risk management, and internal control) by evaluating their effectiveness in achieving City objectives.

REVENUE SERVICES Responsible for the billing and collection of property taxes, annual utilities, metered utilities, and district energy utility charges and levies. This section also collects fees for dog licenses, false alarms, secondary suites, and parking tickets. In addition, Revenue Services is responsible for Accounts Payable, which processes supplier invoices and timely payments, ensures supplier information is up to date, and reconciles supplier transactions. PROCUREMENT SERVICES & CONTRACT MANAGEMENT Coordinates the procurement of high quality, cost-effective goods and services, while ensuring all City polices are followed and best practices implemented. This section follows applicable legislation and ensures appropriate public and competitive processes are applied to achieve best value. It provides professional expertise in the areas of purchasing, supply chain management and contract administration RISK MANAGEMENT SERVICES Provides consulting services to City departments on how to identify, plan for, and manage risks in their daily business. It provides service and expertise in the areas of risk identification and treatment, insurance, claims, litigation, and loss control. By incorporating effective risk management practices, the City is able to identify, manage and reduce the overall cost of risk. TREASURY OPERATIONS Monitors cash flow and invests funds in a prudent manner, providing investment return and long-term security while meeting daily cash flow needs. This section is responsible for the City’s relationship with its financial institution and credit/debit card payment processor.

2023 ACCOMPLISHMENTS • Implemented a new e-procurement tool that will reduce the City’s procurement timelines • Collaborated Marketing & Communications to undertake the 2023 and 2024 budget engagement processes and solicit community feedback on budget priorities • Supported the revitalization of the Surrey Homelessness and Housing Society as they returned to a more robust organizational structure • Continued to perform a detailed claims reserve analysis to identify ways to achieve optimum risk reserve balance

• Streamlined the business process for the creation of secondary suite penalty invoices to ensure timely delivery of invoices to residents • Implemented the adoption of PS3280 (Asset Retirement Obligation) and PS3450 (Financial instruments) to improve transparency and disclosure in the financial statements • Explored data driven decision making capabilities to develop graphical operating and capital budget reports for City departments

• Collaborated on multiple payroll software application enhancements resulting in reduced risk of errors and manual data entry • Monitored cashflow and liquidity level to appropriately manage the timing of investment purchases in response to multiple Bank of Canada interest rate increases • Completed the migration of accounting records and functions back to Surrey City Development Corporation as they begin restarting their operations

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