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The Citizen, 1994-07-27, Page 12PAGE 12. THE CITIZEN, WEDNESDAY, JULY 27, 1994. TOWNSHIP OF HULLETT CONSOLIDATED FINANCIAL STATEMENT AS AT DECEMBER 31, 1993 AUDITOR’S REPORT To the Members of Council, Inhabitants and Ratepayers of the Corporation of the Township of Hullett We have audited the consolidated balance sheet of the Corporation of the Township of Hullett as at December 31, 1993 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 Hullett as at December 31, 1993 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 March 23, 1994 Vodden, Bender & Seebach Chartered Accountants Consolidated Balance Sheet as at December 31,1993 1993 1992 ASSETS Unrestricted Cash 96,031 209,067 Taxes receivable 137,422 107,790 User charges receivable 73,364 75,223 Accounts receivable 118,082 79^53 $ 424.899 $ 471.633 LIABILITIES Accounts payable and accrued liabilities 1993 58,754 1992 150,794 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)14,971 (12,510) Unfinanced capital outlay (note 6)-(39,151) Reserves (note 7)351.174 372.500 $ 424.899 $471,533 Consolidated Statement of Operations for the year ended December 31,1993 1993 Budaet 1993 Actual 1992 Actual SOURCES OF FINANCING: Taxation and user charges Residential and farm taxation 1,275,864 1,284,576 1,233,146 Commercial, industrial and business taxation 143,357 144,454 140,439 Taxation from other governments 24,930 25,603 25,372 User charges 27,245 32,846 31,591 Grants Province of Ontario 304,448 318,017 460,337 Other municipalities -212 12,449 Other Property owners' municipal drain assessments 25,000 24,898 80,399 Investment income 15,567 10,813 17,047 Penalty and interest on taxes 15,000 19,299 22,733 Deduct: Amounts received or receivable for county and school boards (note 2) (1.126.936) 704,475 (1.132.339 728,379 (1.079.963) 943,550 Net appropriations from reserves 21,955 21,955 - MUNICIPAL FUND BALANCES AT THE BEGINNING OF THE YEAR (note 6) To be used to offset (or to be recovered from) taxation or users chargers (12,510)(12,510)17,397 Unfinanced capital outlay (39.151)(39.151)- Totai financing available during the year $ 674.769 $ 698.673 $ 960.947 APPUEDTO: 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 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 1993 1993 1992 Budaet Actual Actual 128,019 134,567 136,369 69,086 66,583 70,512 203,680 285,084 302,734 38,340 32,246 38,363 7,244 7,466 6,771 44,298 40,833 41,450 10.102 11.578 15.315 500,769 578,357 611,514 114,000 45,946 63,141 --165,201 60,000 59.399 159.752 174,000 105,345 388,094 --13,000 14,971 $ 674.769 $ 698,673 (12,510) (39.151) $ 960.947 The accompanying notes are an integral part of this financial statement Notes to Financial Statements for the year ended December 31,1993 1. Accounting policies The consolidated financial statements of the Township of Hullett 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) Basis of consolidation (1) 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, Clinton Fire Area Board and Seaforth 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 829,491 264,680 Share of payments in lieu of taxes - 12,324 Share of taxation of telephone gross receipts 19,348 6,496 Amounts requisitioned $ 848,839 $ 283,500 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 $ 18,329 (1992: $ 22,559.), the Clinton Fire Area Board of $ 13,751. (1992: $ 14,278), and the Seaforth Fire Area Board of $9,936. (1992: $ 7,423.). The municipality's share of the Blyth District Fire Area Board's accumulated net revenue at December 31,1993 is $2,501. (1992: $ 4,051.) and of the Clinton Fire Area Board's accumulated net revenue at December 31,1993 is $ 1,744. (1992: $1, 628). 4. Trust funds Trust funds administered by the municipality amounting to $264,763. (1992: $ 255,703.) 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 1993 was $ 8,574. (1992: $ 8,319.) 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 $ 14,971. (1992: deficit $ 51,661.) at the end of the year are comprised of the following: 14,971 (51,661) 1993 1992 for general reduction (increase) of taxation 14,971 (12,510) acquisition of fixed assets to be recovered through taxation -(39.151) 7. Reserves The total balance of reserves of $ 351,174. (1992: $ 372,500) consists of the following: Reserves set aside by council 1993 1992 for working funds 205,000 240,000 for roadways capital expenditure 50,000 50,000 for fire expenditure 26,674 13,000 for disposal site capital expenditure 13,000 13,000 for recreation capital expenditure 56.500 56,500 $351.174 $ 372.500 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 31,1993 is $ 334,775. (1992: $ 351,342) and Is not recorded on the consolidated balance sheet 9. Social contract The Social Contract Act requires municipalities to reduce expenditures by a specified amount in each of the years 1993,1994 and 1995. Unconditional grants will be reduced by a corresponding amount each year. The sectoral agreement between the provincial government and the municipal sector, however, provides for the automatic deferral of 25% of the 1993 social contract target amount and the corresponding reduction of unconditional grants until 1996. For the Township of Hullett the target amount for each year is $5,205., and the amount deferred is $1,301.