Dear Editor:
One of the basic statements for a business is the income statement. By comparing income and expenses it reveals if a business has a profit, loss, or breaks even. It depends on the most accurate information obtainable.
On May 4, 2020, local council resurrected itself from oblivion and discussed the approved budget based on a forecast that no longer is valid. One side supported juggling expenses and the other revisiting the budget. Neither of these will solve the problem (municipal bankruptcy or scraping through) without accurate information.
To make an informed decision council should have a copy of the budget forecast, how current income and expenses have changed and several forecasts of possible income and expense scenarios. This income statement could be presented in columns for easy comparison and prepared by staff (no consultants please) for council.
With this information, council could make the necessary changes to financial allocations and transfers. If the accepted forecast does not pan out the subject should be revisited.
Chris Woode,
Fergus