HomeMy WebLinkAboutThe Citizen, 1986-10-08, Page 13PAGE 14. THE CITIZEN, WEDNESDAY, OCTOBER 8, 1986.
Village of Blyth
Consolidated Financial Report
December 31,1985
To the Members of Council, Inhabitants and
Ratepayers of the Corporation
of the Village of Blyth
We have examined the consolidated balance sheet of the Corporation of the Village of Blyth as at December 31,
1985 and the consolidated statement of operations for the year then ended. Our examination was made in
accordance with generally accepted auditing standards, and accordingly included such tests and other
procedures as we considered necessary in the circumstances.
In our opinion, these consolidated financial statements present fairly the financial position of the Corporation of
the Village of Blyth as at December 31,1985 and the results of its operations for the year then ended in
accordance with the accounting principles prescribed for Ontario municipalities applied on a basis consistent
with that of the preceding year.
Clinton, Ontario
April 3,1986
Licence No.: 1110
Vodden & Bender
Chartered Accountants
3. Contribution to unconsolidated joint local board
Furthertonote 1 [a J [iiiJ, the assets and liabilities andoperationsof the Blyth District Fire Area Board have
not been consolidated. The consolidated statement of operations includes the village's contribution to the
board of $6,630. [ 1984: $9,130. ]. The Village is contingently liable for its share, which is 19%, of the fire area
board's deficit at the end of the year. The municipality's share of the accumulated surplus at December 31,
1985 was $626. and of the deficit at December 31, 1984 was $407.
4. Trust funds
Trust funds administered by the municipality, amounting to $32,355. [1984: $24,894.], have not been
included in the consolidated balance sheet nor have their operations been included in the consolidated
statement of operations.
5. Net long-term liabilities
No long-term liabilities incurred by the municipality are outstanding at the year end.
Approval of the Ontario Municipal Board has been obtained for the long-term liabilities reported on the
consolidated balance sheet.
ASSETS
Unrestricted
Cash
Taxes receivable
User charges receivable
Accounts receivable
Other current assets
Restricted
Cash
Accounts receivable [note 9]
Long-term receivables
Villageof Blyth
Consolidated Balance Sheet
asatDecember31,1985
1985
62,046
28,520
22,734
68,732
_____7
182,039
16,419
19,744
36,163
Capital outlay financed by long-term liabilities
and to be recovered in future years [note 1[b])
$Tl8,2U2~
LIABILITIES *
Accounts payable and accrued liabilities 55,531
Other current liabilities
Net long-term liabilities [note 5]
1984
112,351
21,434
25,610
44,098
10.300
213,793
3,340
33,429
4,008
40,777
7,000
$ 261,57ff~
63,675
129
7,000
6. Municipal fund balances at the end of the year
The balances on the consolidated statement of operations of municipal equity of $73,100. [1984: $101,537. ]
at the end of the year are comprised of the following:1985 1984
-for general reduction of taxation 18,029 18,664
-to reduce revenue levies of boards
and committees 9,458 8,266
-to reduce sewerage system user rates 41,809 55,672
-to reduce waterworks user rates 3,804 18,935
$ 73,100 $ 101,537
FUND BALANCES AT THE END
OF THE YEAR
7. Reserves and reserve funds
The total balances of reserves and reserve funds of $53,408. [1984: $48,452.] and $36,163. [1984: $40,777.]
respectively consist of the following:
Reserves set aside by council for specific purposes
1985 1984
-for working capital 45,000 45,000
■for acquisition of fixed assets 7,000 1,000
-for recreation facilities - 1,408 2.452
Total reserves $ 53,408 $ 48,452
Reserve funds set aside by council for specific purposes
-for acquisition of fixed assets 34,744 31,595
Reserve funds set aside for specific purposes
by legislation, regulation or agreement
-for park purposes 1,419 1,332
-for loans under the Ontario Home Renewal Program -7,850
■ 1,419 9,182
Total reserve funds $ 36,163 $ 40,777
To be used to offset taxation or user charges in 1986
[note 6]73,100 101,537
Reserves [note 7]53,408 48,452
Reserve funds [note 7]36,163 40,777
J 218,202 $ 261,570
The accompanying notes are an integral part of this financial statement
8. Charges for net long term liabilities
Total charges for the year for net long-term liabilities which are reported on the consolidated statement of
operations consists of the following:1985 1984
principal payments 7,000
805
7,000
interest 1.610
7,805 8,610
Villageof Blyth
Notes to the Financial Statements
December 31,1985
1. Accounting policies
a | Basis of consolidation
[ i) The consolidated balance sheet reflects the assets and liabilities of the village revenue fund, capital fund
and reserve funds and of all committees, boards, municipal enterprises and utilities which are under the
control of council: recreation committee, community centre board, cemetery board, sewerage system and
waterworks. All interfund assets and liabilities are eliminated with the exception of loans or advances
between the reserve funds and other funds of the municipality.
[ii| The consolidated statement of operations reflects the consolidated sources of financing and expend
itures of the revenue fund, capital fund, reserves and reserve funds of the municipality and those local
boards, municipal enterprises and utilities described in note 1 [a] [i]. All interfund sources of financing and
expenditure are eliminated with the exception of interest income and expenditure arising from loans and
advances between the reserve funds and other funds of the municipality.
[ iii ] For those local boards, municipal enterprises and utilities which are not consolidated, the consolidated
balance sheet does not reflect their assets or liabilities except to the extent of amounts due to or from those
entities. The consolidated statement of operations does not reflect their revenues or expenditures except to
the extent of the municipality's contribution to those entities. Entities which are not consolidated are the
Blyth District Fire Area Board and the Blyth Hydro.
[ iv) T he taxation and other revenues with respect to the operationsof the school boards and County of Huron
are reflected in the consolidated statement of operations but with no effect on the municipal fund balances
since the total is shown as a deduction. In addition the expenditures, assets and liabilities with respect to the
school boards and County of Huron are not reflected in these financial statements except to the extent that
ur’derlevies are reported on the consolidated balance sheet as other current assets.
[ v] Trust funds and their related operations administered by the municipality are not consolidated but are
reported separately on the trust fund statement of continuity and balance sheet.
b] Basis of accounting
[i] Sourcesof financing and expenditures are reported on the accrual basis of accounting with the exception
of principal and interest charges on long-term liabilities which are charged against operations in the periods
in which they are paid. The principal and interest charges are not accrued for the periods from the dates of
the latest installment payments to the end of the financial year.
[ii| The accrual basis of accounting recognizes revenues as they become available and measurable; expend
itures at e recognized as they are incurred and measurable as a result of receipt of goods or services and the
creation of a legal obligation to pay.
[iii] The historical cost and accumulated depreciation of fixed assets are not reported for municipal
purposes Fixed assets are reported as an expenditure on the consolidated statement of operations in the
year of acquisition. For those fixed assets financed or to be financed by the issue of long-term indebtedness,
the principal and interest on the long-term indebtedness are also reported on the consolidated statement of
operations as they are incurred.
[iv] "Capital outlay to be recovered in future years" which represents the outstanding principal portion of
unmatured long-term liabilities for municipal expenditures or capital funds transferred to other organiza
tions is reported on the consolidated balance sheet.
2. Operations of school boards and county
Further to note 1 [a] [iv] the taxation, other revenues, expenditures and overlevigs [underleviesj of the
school boards and County of Huron are comprised of the following: school boards
Overlevy, beginning of year 98
Taxation revenue 141,537
Grant in lieu of taxes 2,698
Requisitions [144,321]
Over[under]levy, end of year "5 "
9. Reserve fund assets
Restricted assets include $19,744. [1984: $31,595.] due from general municipal funds which does not meet
the investment requirements of the Trustee Act.
10. Non-accrual of interest on long-term liabilities
No provision has been made in these financial statements for the accrual of interest on the net long-term
liabilities. Had this provision been made, the municipal fund balances as at December 31,1985 would not
have been affected as there were no long-term liabilities outstanding. The municipal fund balances as at
December 31, 1984 would have been decreased by $101.
11. Contractual obligation - Ministry of the Environment
In accordance with a service agreement entered into by the Municipality in 1978 with the Ministry of the
Environment, the existing sewage system is owned and operated by the Ministry. The Municipality is
obligated to meet all operating costs and repay the long-term liabilities related to these projects.
Included in the consolidated statement of operations are the 1985 charges from the Ministry of $107,711.
The consolidated balance sheet does not reflect any assets or liabilities pertaining to the sewage system
except to the extent of service charges due to the Ministry.
Information received from the Ministry as at March 31, 1985, indicates the following:
accumulated net [deficit] [63,063]
1985 debt charges 6,102
total outstanding long-term liabilities 49,330
The operating deficits and long-term liabilities indicated above are not reflected in the accompanying
financial statements.
12 Ontario Home Renewal Plan
Effective January 1, 1985, amendments to regulations require that the Ontario Home Renewal Program
funds be accounted for as a trust fund and no longer as a reserve fund. This transfer of the fund balance has
reduced the total opening reserve fund balances by $7,850. and is not reflected in the consolidated
statement of operation The 1985 transactions for this program are reflected in the financial statements for
the trust funds of the municipality
11 Subsequent events
t oilowing the year end it was discovered that funds had been misappropriated from the municipality.
A‘ < ounts receivable reportedat December 31,1985 include a total of $52,657. which has been misappropriat
ed and is recoverable from the municioality's bond insurer.
1 he loss from the misappropriation is reported as applied tocurrent operations and the recovery as a source
Of financing other in the consolidated statement of operations but have no effect upon the municipal fund
halances at the end of the year
county
31
38,819
740
[39,609]
if $ rray
AUDITOR'S REPORT
To the Members of Council, Inhabitants
and Ratepayers of the Corporation of
the Village of Blyth:
We have examined the balance sheet of the trust funds of the Corporation of the Village of Blyth as at
December 31,1985 and the statement of continuity of trust funds for the year then ended. Our examination was
made in accordance with generally accepted auditing standards, an*1 accordingly included such tests and other
procedures as we considered necessary in the circumstances.
In our opinion, these financial statements present fairly the financial position of the trust funds for the
Corporation of the Village of Blyth as at December 31,1985 ana the continuity of trust funds for the year then
ended in accordance with accounting principles prescribed for Ontario municipalities applied on a basis
consistent with that of the preceding year.
Slin.‘®n'?"tario Vodden & Bender
April 3,1986 Chartered Accountants
Licence No.: 1
Villageof Blyth
Consolidated Statement of Operations
for the year ended December 31,1985
1985 1985 1984 1985 1985 1984
Budget Actual Actual Budget Actual Actual
SOURCES OF FINANCING:APPLIED TO:
Taxation and user charges Current operations [note 3, 8, 10, 11, 13]
Residential and farm taxation 224,564 223,241 212,067 General government 49,700 100,860 50,735
Commercial, industrial and Protection to persons and property 12,200 9,533 11,807
business taxation 103,988 107,867 96,300 Transportation services 87,100 83,838 70,734
Taxation from other governments 10,810 10,347 10,429 Environmental services 172,805 171,583 149,236
User charges 211,414 211,184 199,269 Health services 11,900 10,890 7,874
Grants Social and family services 1,800 1,820 955
Government of Canada -9,850 Recreation and cultural services 122,454 122,283 122,172
Province of Ontario 162,796 164,013 137,442 Planning and development 13,500 10,709 24,934
Other municipalities 19,446 22,756 17,275 Capital
Other Street reconstruction 106,900 107,464 52,873
Investment income 8,650 7,463 9,294 Garbage disposal site 8,000 8,000 16,376
Other [note 13)10,286 62,818 21,824 Arena land and improvements 19,140 19,160 42,690
Deduct: Amounts received or receivable Net appropriations to reserves and
for County and school boards [note 2][182,658][183,794][170,001]reserve funds 8,161 8,192
Net appropriations from reserves and MUNICIPAL FUND BALANCES
reserve funds --27,678 AT THE END OF THE YEAR
MUNICIPAL FUND BALANCES AT To be used to offset taxation or
THE BEGINNING OF THE YEAR user charges [note 6|57,173 73.100 101,537
To be used to offset taxation or Total applications during the year $ 670,833 $ 727,432 $ 651,923
user charges [note 6]101,537 101.537 80,496
Total financing available during the year $ 670,833 $ 727,432 $651,923
The accompanying notes are an integral part of this financial statement Continued on page 15