In order to meet the requirements of the provincial government, all municipalities in New Brunswick were required to transition from cash based accounting to the Public Sector Accounting Board (PSAB) standards. Moving forward, cash based accounting will still be used for setting annual budgets and tax rates; however, the Auditor's Report will reflect PSAB.
Under PSAB surplus and/or deficit does not refer to cash on hand. It refers to the total value of cash, tangible capital assets (such as land, buildings, waste water treatment plant) and all other assets such as computers, furniture, etc., compared to the total value of the liabilities such as debts, loans and debentures.
The Accumulated Surplus (Deficit), end of year from the Consolidated Statement of Operations represents the position the municipality would be in if they had to wind up operations, sell off all assets and pay off all debts.