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HomeMy WebLinkAboutTimes-Advocate, 1984-05-23, Page 18Poge 6A Times -Advocate,. May 23, 1984 goer/ice/ 1 FINANCIAL STATEMENTS DECEMBER 31, 1.983 AUDITORS' REPORT To the Supporters of The Huron County Board of Education. We have examined the balance sheet of The Huron County Board of Education as at December 31, 1983 and the revenue fund statement of revenue and expenditures and the capital fund statement of operations for the year then en4ed. 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 financial statements present fairly the financial position of the Board as at December 31, 1983 and the results of its operations for the year then ended in accordance with the accounting principles described in note 1 to the financial statements applied on a basis consistent with that of the.preceding year. London, Canada. March 13, 1984. Chartered Accountants. License No. 641. THE HURON COUNTY BOARD OF EDUCATION CAPITAL FUND STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1983 (with comparative amount* for 1982) Sources of recovery of capital expenditures: Capital expenditures out of revenue fund Debenture principal payments included in revenue fund expenditures Capital expenditures: Land and buildings Furniture and equipgent Net recovery of prior years' capital expenditures Unrecovered capital expenditures, beginning of year Unrecovered capital expenditures, end of year (See accompanying notes) 1983 STATEMENT 3 1982 $ 647,095 $ 815,112 • 529,232 533 281 1,176,327 1-148-141 371,546 275,549 647.095 510,466 304,646 815.112 529,232 533,281 2,533,762 3,067,043 $2.004.530 $2.533.762 THE HURON COUNTY BOARD OF EDUCATION BALANCE'SHEET DECEMBER 31, 1983 (with comparative amounts at December 31, 1982) ASSETS Cash Accounts receivable: Government of Ontario Local taxation - Outstanding 1982 Requisitions Supplementary taxes Other school boards Sundry Prepaid expenses REVENUE FUND CAPITAL FUND Accounts receivable Due from revenue fund Capital outlay to be recovered in future years (statement 3) -Due from revenue fund RESERVE FUND TRUST FUND Cash Investments - at cost which approximates market value On behalf of the Board Director Director (See accompanying notes) 1983 1982 $ 866,749 1,471,628 $1,794,757 37,000 200 1,464 101,221 397,985 23,351 37,397 2,4 149 2,268,603 74.438 79.360 m $2.537.587 $2.347.963 $ 225 $ 7,275 LIABILITIES AND EQUITY REVENUE FUND Bank loan and overdraft 1983 Accounts payable: Local taxation - over requisition (statement 2) $ 425,730 Trade accounts payable and accrued charges 1,169,548 Other school boards 197,719 1,792,997 Due to capital fund 1,275 Due to reserve fund 12,315 19.590 Reserve for working funds (note 3) 225 Holdbacks payable 7,275 Unmatured debenture debt (note 4) 2,004,530 2,533,762 $2.012.030 $2.541.262 $ 12.315 $ 13.500 $ 9,261 $ 169.968 Equity in reserve funds (note 6) 7,828 Trust funds (note 7): Balance, beginning of year 162,971 Add - Investment incase Principal receipts $ 179.229 $ 170.799 Deduct awards Balance, end of year CAPITAL FUND RESERVE FUND TRUST FUND STATEMENT 1 1982 $ 129,889 316,287 1,073,976 182,036 1,702,188 7,275 13,500 20.775 725,000 625,000 4.537.587, *2.347.963 $ 7,500 $ 7,500 2,004,530 2,533,762 $2.012.030, $2.541.262 $ 12.315 $ 13.500, $ 170,799 $ 170,514 26,421 7,000 204,220 24.991 23,477 1,000 194,991 • 24.192 179,229 170,799 ! 179.229 $ 170.799 THE HURON COUNTY BOARD OF EDUCATION REVENUE FUND STATEMENT OF REVENUE AND EXPENDITURES YEAR ENDED DECEMBER 31, 1983 (with comparative amounts for 1982) Expenditure: Business administration General administration Computer services Instruction Plant operation and maintenance Transportation Tuition fees Capital expenditure (non -allocable) Other operating expenditure Debt charges and capital loan interest (note 5) Non-operating expenditures, excluding transfers to reserves Total expenditure 18,068,110 1983 Elementary Schools $ 161,737 165,662 7,441 13,741,519 1,375,961 1,619,896 22,225 421,733 59,687 452,824 39.425 Recovery of expenditures: Other school boards Government of Canada Individuals Other revenue, excluding fransfere from reserves Total recovery of expenditures Net expenditure Financed by: Transfer from (to) fund Transfer to revenue fund for working funds Government of Ontario - g 1 legislative grant Local taxation - • d in current year Previous year's over (under) requisition Under (over) requisition of tames for year (note 8) (See accompanying notes) 1,980 25.821 27.801 18.040,309 Secondary Schools $ 171,055 175,206 7,870 12,041,064 1,571,163 1,600,471 752,889 8,400 83,350 221,028 72.585 16.705.081 1,125,737 36,916 65,185 10.881 Total $ 332,792 340,868 15,311 25,782,583 2,947,124 3,220,367 775,114 430,133 143,037 673,852 112.010 STATEMENT 2 1982 Elementary Schools $ 144,507 132,092 5,257 12,461,920 1,202,861 1,592,266 25,289 149,139 69,812 487,416 33.868 34,773,191 16,304,427 1,125,731 36,916 67,165 36.702 1.238,719 1,266,520 1,002 1,626 16.952 19.580 15.466,362 33,506,671 16,284,847 1,185 " 1,185 (1,500) (100,000) (100,000) 9,949,778 21,953,431 11,038,397 5,637,878 11,761,498 5,352,147 22515,71325 33,9869 31401 16,313.163) 12,003,653 6,123,620 90 418 18,21876 $ (178.567) $, (247.163,) $ (425.730) $ (90.411) r $ Secondary Schools 154,061 140,825 5,605 ,018,021 ,429,032 449,102 799,143 418,698 96,051 220,982 64.970 15.790,490 990,095 33,848 81,622 3.857 1.109,422 Total $ 298,568 272,917 10,862 23,479,941- 2,631,893 3,041,368 818,432 567,837 165,863 708,398 98.838 32.094,917 991,097 33,848 83,248 20.809 1.129,002 14.681,068 30,965,915 (100,000) 9,854,039 5,259,443 (106,545) 14.906,937 (1,500) (100,000) 20,892,436 10,611,590 (120 324) 31,2 2,202 $ (225.869) $ (316.287) • THE HURON COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 1983 1. Accounting policies The financial statements have been prepared by the Board in accordance with principles that are considered appropriate for Ontario School Boards on a basis consistent with that of the preceding year. These principles are in accordance with generally accepted accounting principles except as prescribed by the Ministry of Education and noted as follows: (a) Accrual accounting The accrual method for reporting revenue and expenditure has been used with the exception of reporting of charges for unmatured debenture debt and expense relating to sick leave benefits. With regard co unmatured debenture debt, principal and interest charges are not accrued from the due date of payment to the end of the fiscal year. Note 2 below sets out the accounting followed for sick leave benefits. (b) Fixed assets and unmatured debenture debt Fixed assets are charged to current expenditure unless financed by long-term debt. Principal and interest charges on unmatured debenture debt are included in expenditure in the period due. Fixed assets, described as capital outlay to be recovered in future. years, are included on the balance sheet only to the extent of the balances of the related unmatured debenture debt outstanding and of any related temporary financing at the end of the fiscal year. • J 2. Retirement gratuity plan Under the sick leave benefit plan, unused sick leave can accumulate, and employees may become entitled to a .;ash payment when they leave the Board's employment. To become eligible for this benefit, an employee must have twelve years of service with The Huron County Board of Education. The amount of such benefits accumulated to December 31, 1983, to the extent that they can be claimed as cash payments by employees on retirement is $6,561,000. This amount does not include any estimate in respect of sick leave accumulated by employees of the Board who do not yet qualify to claim the gratuity. No provision has been made in respect of this contingent liability in these financial statements. During 1983, the Board paid $310,000 to employees who left the Board in 1982, ($112,000 paid in 1982). 3. Reserve for working funds The reserve for working funds at December 31 is applicable to the elementary and secondary school operations of the Board as follows: 1983' 1982 Elementary $275,000 $275,000 Secondary 450,000 350,000 8725.000 $625.000 .4. Unmatured debenture debt Of the unmatured debenture debt outstanding of $2,004,530, principal and interest repayments for the next five years are as follows: 1984 1985 1986 1987 1988 Remaining balance Principal Interest Total e 522,236 $114,307 $ 636,543 513,120 84,315 597,435 476,174 54,850 .531,024 313,000 27,488 340,488 62,000 13,243 75,243 6,886,530 294,203 2,180,733 118,000 18.510 136.510 $2.004.530 $312.713 $2.317.243 5. Debt charges and capital loan interest The revenue fund expenditure for debt charges and capital loan interest includes principal and interest payments as follows: 1983 1982 Elementary 'Secondary. Elementary Secondary Principal payments on long-term debt including contributions to sinking funds $360,232 $169,000 $373,281. $160,000 Interegt payments thereon 92,591 52,027 114,135 60,983 $452.823 $221.027, $487.416, $220.983 6. Reserve fund The reserve fund relates to disposals of certain surplus properties. The Board vas not obligated to reduce the current Province of Ontario grants in this amount on condition that such funds be placed in a reserve fund and used for future capital expenditures. Changes in the reserve fund balance are as follovs: Balance, January 1 Transfers from (to) the revenue fund Balance, December 31 1983 1982 $13,500 $12,000 (1,185) 1,500 $12.315, 113.500 7. Trust funds Trust funds generally represent accumulated donations received by the Board from individual, corporate and institutional sources. These funds are used to provide various scholarships, bursaries and avards'to students in Huron County schools and to assist with other educational projects not Board. 8. Overfor under requisition The School's Administration Act provides that the difference between the amount requisitioned from a municipality and the amount that should have been requisitioned based on the actual level of expenditure and grants is to be treated as an over requisition or under requisition. The attached financial statements reflect a net over requisition from municipalities in 1983 of $425,730 which will be deducted from the tax requisition by the School Board in 1984. funded by the 9. Comparative amounts Certain of the 1982 cooperative figures have been revised to reflect adjustments made to the 1982 grant from the Government of Ontario; such adjustments were not material in amount.