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HomeMy WebLinkAboutThe Citizen, 1993-06-02, Page 13THE CITIZEN, WEDNESDAY, JUNE 2, 1993. PAGE 13. 0 TOWNSHIP OF HULLETT CONSOLIDATED FINANCIAL STATEMENT AS AT DECEMBER 31, 1992 AUDITOR'S REPORT To the Members of Council, inhabitants and Ratepayers of the Corporation of the Township of Hu!lett We have audited the consolidated balance sheet of the Corporation of the Township of Mullett as at December 31, 1992 and the consolidated statement of operations for the year then ended. These financial statements are the responsibility of the township's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also Includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these consolidated financial statements present fairly, in all material respects, the financial position of the Corporation of the Township of Huilett as at December 31, 1992 and the results of its operations for the year then ended in accordance with the accounting principles disclosed in note 1 to the financial statements. Clinton, Ontario Vodden, Bender & Seebach March 5, 1993 Chartered Accountants Consolidated Balance Sheet as at Dece mbar 31, 1092 1992 1991 1292 1221 LIABILITIES Accounts payable and accrued liabilities 150,794 38,063 MUNICIPAL FUND BALANCES AT THE END OF THE YEAR To be used to offset (or to be recovered from) taxation or user charges (note 6) (12,510) 17,397 Unfinanced capital outlay (note 6) (39,151) Reserves (note 7) 272.500 359.500 5 471.633 141CM ASSETS Unrestricted Cash Taxes receivable User charges receivable Accounts receivable 209,067 107,790 75,223 ria552 S 471.633 • 86,783 178,384 88,597 85.196 5 414.980 Consolidated Statement of Operations for the year ended December 31, 1992 1992 1992 1991 Austad Actual Actual 1992 1992 1991 Budget Actual Actual 11481 5 978.022 SOURCES OF FINANCING: Taxation and user charges Residential and farm taxation 1,228,664 Commercial, industrial and business taxation 140,908 Taxation from other governments 23,620 User charges 31,520 Grants Province of Ontario 451,507 Other municipalities 12,000 Other Property owners' municipal drain assessments 80,000 investment income 21,667 Penalty and interest on taxes 15,000 Deduct: Amounts received or receivable for county and school boards (note 2) Net appropriations from reserves MUNICIPAL FUND BALANCES AT THE BEGINNING OF THE YEAR (note 6) To be used to offset taxation or user charges 17.397 17,397 Total financing available during the year 9/44.7.44 5 960.947 APPLIED TO: Current operations General government Protection to persons and property Transportation services Environmental services Health services Recreation and cultural services Planning and development Capital Road and bridge construction Road grader Municipal drains Land purchase Net appropriations to reserves MUNICIPAL FUND BALANCES AT THE END OF THE YEAR (note 6) To be used to offset (or to be recovered from) taxation or user charges Unfinanced capital outlay Total applications during the year 1,233,148 1,297,590 140,439 141,889 25,372 34,610 31,591 43,599 460,337 409,450 12,449 3,569 80,399 81,435 17,047 24,484 22,733 24,146 0.077.5391 927,347 (1.0791631 (1.160.3701 943,550 900,202 66,339 136,082 138,369 128,553 69,245 70,512 85,218 222,895 302,734 297,091 30,632 38,383 30,881 7,330 8,771 4,973 43,081 41.450 56,098 15.228 15.315 14.777 522,544 611,514 617,571 121,200 63,141 185,704 185,200 165,201 160,000 159,752 134,229 23.121 446,400 388,094 343,054 13,000 13,000 2,000 (12,510) 17,397 (39.2001 (39.1511 5 944.744 S 960.947 5 978.022 The accompanying notes are an integral part of this financial statement Notes to Financial Statements for the year ended December 31, 1992 1. Accounting policies The consolidated financial statements of the Township of Mullett are the representation of management prepared in accordance with accounting policies prescribed for Ontario municipalities by the Ministry of Municipal Affairs. Since precise determination of many assets and liabilities Is dependent upon future events, the preparation of periodic financial statements Involves the use of estimates and approximations. These have been made using careful judgements. (a) (1) Basis of consolidation These consolidated statements reflect the assets, liabilities, sources of financing and expenditures of the revenue fund, capital fund, reserve funds and reserves and include the activities of the recreation and community centre board which Is under control of council. All interfund assets and liabilities and sources of financing and expenditures have been eliminated with the exception of loans or advances between reserve funds and any other fund of the municipality and the resulting Interest Income and expenditures. (2) Non-consolidated entities The Blyth District Fire Area Board and Clinton Fire Area Board, which are Joint local boards, are not consolidated. (3) Accounting for county and school board transactions The taxation, other revenues, expenditures, assets and liabilities with respect to the operations of the County of Huron and school boards are not reflected in the municipal fund balances of these financial statements. (4) Trust funds and their related operations administered by the municipality are not consolidated but are reported separately on the trust funds statement of continuity and balance sheet. (b) Basis of accounting (1) Sources of financing and expenditure are reported on the accrual basis of accounting with the exception of principal charges on long-term liabilities which are charged against operations In the periods in which they are paid. (2) The accrual basis of accounting recognizes revenues as they become available and measurable; expenditures are 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. (3) The historical cost and accumulated depreciation of capital assets are not reported for municipal purposes. Capital assets are reported as an expenditure on the consolidated statement of operations in the year of acquisition. (4) "Capital outlay to be recovered In futures years" which represents the outstanding principal portion of unmatured long-term liabilities for municipal expenditures or capital funds transferred to other organizations is, when such balance exists, reported on the consolidated balance sheet. 2. Operations of school boards and county Further to note 1 (a) (3) the taxation, other revenues, and requisitions of the school boards and County of Huron are comprised of the following: school boards county Taxation and user charges 792,602 250,693 Share of payments in lieu of taxes 11,930 Share of taxation of telephone gross receipts Ant 10.2 Amounts requisitioned 5 811.294 5 268.664 3. Contributions to unconsolidated Joint boards Further to note 1(a)(2) the municipality has made contributions to the Blyth District Fire Area Board of $ 22,559 (1991: $ 37,022) and to the Clinton Fire Area Board of $ 22,878 (1991: $ 11,978). The municipality's share of the Blyth District Fire Area Board's accumulated net revenue at December 31, 1992 is $4,051 (1991: S 3,780) and of the Clinton Fire Area Board's accumulated net revenue at December 31, 1992 is $ 1,628 (1991: $ 419). 4. Trust funds Trust funds administered by the municipality amounting to $255,703 (1991: $ 245,722) have not been included in the consolidated balance sheet nor have their operations been Included in the consolidated statement of operations. 5. Pension agreements The municipality makes contributions to the Ontario Municipal Employees Retirement Fund (OMERS), which is a multi-employee plan, on behalf of five members of Its staff. The plan is a defined benefit plan which specifies the amount of the retirement benefit to be received by the employees based on the length of service and rates of pay. The amount contributed to OMERS for 1992 was $ 8,319 (1991: $ 7,616) for current service and is included as an expenditure on the consolidated statement of operations. 6. Municipal fund balances at the end of the year The balances on the consolidated statement of operations of municipal equity or (deficit) of S (51,661) (1991: $ 17,397) at the end of the year are comprised of the following: 1922 1291 for general reduction (increase) of taxation (12,510) 17,397 acquisition of fixed assets to be recovered through taxation (39.1511 (51.6611 17.397 7. Reserves The total balance of reserves of $ 372,500 (1991: $ 359,500) consists of the following: Reserves set aside by council 1222 1221 for working funds 240,000 240,000 for roadways capital expenditure 50,000 50,000 for fire expenditure 13,000 for disposal site capital expenditure 13,000 13,000 for recreation capital expenditure 56.500 56.500 5 372.590 5 359.500 8. Net long-term liabilities The municipality Is contingently liable for long-term liabilities with respect to tile drainage loans recoverable from property owners and payable to the Province of Ontario as loan Instalments become due. The total amount outstanding as at December 31, 1992 is S 351,342 (1991: S 380,225) and is not recorded on the consolidated balance sheet.