The United Counties of Prescott and Russell finished its 2023 fiscal year with a financial surplus of $20,205,751.
The amount was disclosed to mayors at the Thursday, April 25 UCPR council meeting when Gérald Gauthier of accounting firm MNP presented the regional government’s audited financial statements for the year 2023.
The surplus exceeds the amount projected in the 2023 UCPR budget by $3,665,151. The main reasons for the increased surplus are greater than budgeted tax revenue and greater than expected transfer payments from the provincial and federal governments.
The 2023 budget projected $65,410,700 in tax revenue, but the actual amount was $406,485 more for a total of $65,817,185. Transfer payments from the Ontario government totaled $54,950,663, which was $1,279,863 more than projected. Federal transfers were $1,171,372 more than projected for a total of $8,602,472.
Certain expenses for the UCPR were also lower than projected in 2023. Social and Family Services expenses were $1,674,667 less than anticipated, expenses for Planning and Development were $844,087 less than projected, and General Government expenses were $418,874 less than anticipated.
However, some expenses did exceed the 2023 budget projections. Transportation Services expenses exceeded projection by $5,994,403 and Social Housing expenses were $1,430,679 greater than anticipated.
The UCPR finished 2023 with $35,986,257 in reserves. The largest reserve amount at $19,352,566 is for working capital. The Nation Mayor Francis Brière asked about the purpose and reason for the working capital surplus amount. Gauthier explained it was due to capital expenses being lower than budgeted.
Brière also questioned the purpose of $3,202,690 in a COVID-19 reserve.
Acting Treasurer Mélanie Gratton explained the reserve is the result of grants received by the UCPR to address situations related to the pandemic, particularly mental health. She said it is used as a reserve for the paramedicine program, which was created by the UCPR Department of Emergency Services during the pandemic.
Acting Warden Normand Riopel said he hopes the excessive surplus will help mitigate the UCPR’s future debts.
