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Times -Advocate, August 1, 1984 !
Township of Usborne Financial RepQrt - 1983
•
Auditors Report
To the Members of Council, Inhabitants
and Ratepayers of the Corporation of
the Township of Usborne:
We have examined the consolidated balance sheet of the Corporation of the
Township of Usborne as at December 31, 1983 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.
Due to the nature of the operations of The Kirkton-Woodham Community
Centre Board. a local board, it was not practicable to fully verify revenue
from fees, barbeques, dances and hall rentals; however, we were able to
verify that recorded receipts were deposited into the bank account.
Except for the qualification regarding income outlined above regarding
the Kirkton-Woodham Community Centre. we report that, in our opinion, these
consolidated financial statements present fairly .the financial position of the
Corporation of the Township of Usborne as at December 31, 1983 and the results
of its operations for the year then ended in accordance with the accounting
principles prescribed for Ontario Municipalities applied, after giving
retroactive effect to the changes in accounting policy as explained in note 9
to the financial statements, on a basis consistent with that of the preceding
year.
Durst, Vodden 4 Bender
.Chartered Accountants
Goderich, Ontario
April 6, 1984
Municipal Auditor's licence number 782.
Consolidated Balance Sheet
as at December 31, 1983
ASSETS
Unrestricted
Cash
Investments (note 3 )
Taxes receivable
User charges receivable
Accounts receivable
Other current assets
Long term receivables
Restricted
Cash
Investments (note 3 )
Accounts receivable
Other current assets
Long term receivables
Investment in own debentures
Capital outlay financed by long term liabilities
and to be recovered in future years (note 9(iii)
LIABILITIES
Temporary loans
Accounts payable and accrued liabilities
Other current liabilities
Net long term liabilities (note 5 )
FUND BALANCES AT THE IND
OF THE YEAR (note )
To be used to offset (or to he recd. grad
from) taxation or user charges (note 9 )
Unexpended capital financing (or capital
operations not yel pernianenll) financed) (note 9 )
•
Reserves (note 6 )
Reserve funds (nose 6 )
1983
$
2,145
20,000
46.207
1982
$
143,834
20,000
38,773
122,882 67,885
7,099 4,122
198,333 274,614
30,391
76,585
23,634
17,825
96,287
24,544
101,840 108,463
232,450 247,119
141,083 157,582
571,866 ae • 679,315
1983-82 Mill Rates
Township Levy
- General services
- Roads
County Levy
Education Levy
- Public School Supporters
Elementary
Secondary
Residential and Farm
Properties
1983 1982 /.Increase
29.16
34.54
63.70
13.13
54.65
67.77
-6.0
62,900
66,619
6,676
136.195
141,083
34.300
46,738
46.830
127,868
157,582
76.138 91,746
(80,000)
66.000
232.450
571.866,
55.000
• 247,119
679.115
Commercial and Industrial
Properties
1983 1982 7. increase
34.30
40.63
74.94
•34.26 30.06 .14.0 40.31
61.48 54.19
50.56 47.98
112.05 102.19 .10.0
- Separate School Supporters
Elementary 61.55
Total Mill Rates
Public School Supporters
Separate School Supporters
15.50
64.29
79.73
-6.0
35.37 .13.0
72.33 63.75
59.49 56.44
131.82 120.20
.10.0
54.14 .14.0 72.41 63.69 +14.0
210.00 200.02 .5.0 247.06 235.29 .5.0
21x-08 ig4735 - .5.0 247.14 235.73 - .5-0
1983-82 Average Household Taxes
The average residential assessment per household according to the 1983
assessment roll supplied by the Ministry of Revenue was $6,174. Using this
assessment base. the average residential tax burden per household was as
follows:
Township Levy
General purposes
Road purposes
County I.evy
Huron County Board of Education Levy
Elementary purposes 380 335
Secondary purposes 312 296
692 631
Total Residential Property Taxes 1,297 1,235
1983 1982
$ $
180
213
393
212
81
337
418
i86
Increase
(Decrease)
$
.99
( -1 24 )
(- 25)
.26
•45
•16
.61
.62
The above 1983 taxation per household of $1,297 ( 1982 - $1.235) is for a public
school supporter living in a rural area. Comparable amounts for taxation
per household for separate school supporters are $1,297 in 1983 and $1,235 in
1982.
The average taxes reported above represent total taxes payable before consider-
ation of tax credits under the Ontario Tax Credit Program or tax relief
provisions to elderly ratepayers under the Municipal Elderly Residents
Assistance Act.
Consolidated Statement of Operations
SOURCES OF FINANCING:
Taxation and user charges (note 1 (a)(1v)
Residential and faun taxation
Commercial, industrial and
business laxation
Taxation from other governments
User charges
Deduct Amounts recessed or receivable
for region or county, and school boards
Grants
Other
Go.ernment of Canada
Province of Ontario
Other municipalities
Contributions from developers
Investment income
Sale of land
Other
Proceeds from the issue of long
term liabilities
Extraordinary gain (note )
Net appropriations from reserves
and reserve funds
MUNICIPAL FUND BALANCES AT
THE BEGINNING OF THE YEAR (note
9 )
Budget
1983
$
207.585
14,381
2,100
122,532
•
•
For the year ended December 31, 1983
Actual
1983
$
.( ) ,(
15,600
362,738
25,649
64,158
58,800
3,669
To he used to ofiset(or to be
recovered from) laxation or user charges 91,746
Unexpended capital financing (or
capital operations not yet
financed)
Total financing available during the year
968,958
207.754
14.390
2,077
129,118
▪ 14,040
▪ 339,994
Actual
1982
221,049
14,590
1,961
117,885
222,537
APPLIED TO:
Current operations
General government
Protection to persons and properly
Transportation services
Environmental services
Health services
Social and family services
Recreation and cultural services
Planning and development
Other
Capital
,Machinery and equipment - roads
.Machinery and equipment - community centre
Municipal drains - roads share 5.439
.Municipal
drains - landowners portion 71,262
23,940 36,136 Share of ABU building constructed ' 100,000
Furniture 6 equipment - for new building 15,000
Budget Actual
1983 1983
$ s
109,197 134,551
57,684 48,240
457,842 403,310
11.800 18.262
100 100
50 50
88,827 88.675
23,744 26,978
Actual
1912
• 101.131
▪ 44.973
302,588
• 16,263
• 50
▪ 84.191
▪ 25,870
▪ 749,244 720,166 575,066
80,422 71,825
3,669
91.746 18,546
59,400
• 907,150 • 763,929
Extraordinary Toss (note )
Net appropriations to reserves and reserve funds .
MUNICIPAL FUND BALANCES
AT THE END OF THE YEAR (note 9
To be used to offset (or to be
recovered from) taxation or user charges
Unexpended capital financing (or
capital operations not )el
financed )
Total applications during the year
191./01
'8„013
5,439
71,262
106.132
8,013
190,846
3.531
• 1,544
7.227
53,266
65.568
31,549
76,138 91,746
(80,000) ,
• 968,958 • 907.150 • 763.929
1.
NOTES TO FINANCIAL STATMENTS
for the year
Accounting Policies
(a) Basis of Consolidation
(i) Consolidated Balance Sheet
This statement reflects the assets and liabilities of the revenue
fund, reserve funds, the capital fund and includes the activities
of all committees of Council and the following local boards,
municipal enterprises and utilities which are under the control of
council:
Kirkton-Woodham Community Centre Board
(ii) Consolidated Statement of Operations
This statement reflects the, consolidated sources of financing and
expenditures of the revenue fund, reserves. reserve funds, and the
capital fund of the municipality and those local boards, municipal
enterprises and utilities described in note 1 (a) (1).
(iii) Non -consolidated Entities
For those local boards, municipal enterprises, and utilities of the
municipality which are not consolidated, the "Consolidat d 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 and
expenditures except to the extent of the municipality's contribution
to those entities.
Those entities which are not consolidated are as follows:
Exeter and Area Fire Board
(iv) The taxation, other revenues, expenditures, assets and liabilities
with respect to the operations of the school boards, and the County
of Huron are not reflected in these financial statements except to
the extent that overlevies (underlevies) are reported on the
"Consolidated Balance Sheet" as "other liabilities" ("other current
assets").
(b) Basis of Accounting
(i) Sources of 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 period from the date of the latest
instalment payment to the end of the financial year.
(ii) The accrual basis of accounting recognizes revenues as they become
available and measurable; expenditures are recognized as they are
incurre,' and measurable as a result of receipt of goods or services
and the creation of a legal obligation to pay.
ended
(iii) Capital Outlay to be Recovered in Future Years
The historical cost and accumulated depreciation of fixed assets are
not reported for municipal purposes. Instead the "Capital outlay to
be recovered in future years", which represents the outstanding princi-
pal portion of unmatured long term liabilities for municipal expenditures
or capital funds transferred to other organizations, is reported on the
"Consolidated Balance Sheet".
2. Operations of School Boards and the County_ of Huron
the taxation, other revenues, expenditures and
the school boards and the County of Huron are
School
Boards
387,440
(387,4)
Further to note 1 (a) (iv),
overlevies (underlevies) of
comprised of the following:
Taxation and user chatges
Grants - apportionment guarantee 23.780
Less: Requisitions and share of supplementary
taxes less taxes written off (142,218)
Overlevies for the year 3
Overlevies (underlevies) at the beginning of the year (1)
Overlevies at the end of the year $ ---
County
118.441
These revenues and expdnditures are not reflected in the "Consolidated
,Statement of Operations".
The overlevies at the end of the year are reported assother liabilities on
the "Consolidated Balance Sheet".
3. Investments
The total of investments of $96,585 (1982 $116,287) recorded on the "Con-
solidated Balance Sheet" at cost, have a market value of $96,585 (1982 $116,287)
as at the end of the year.
4. Contributions to Unconsolidated Joint Boards
Further to note 1 (a) (iii), the assets and liabilities the unconsolidated
joint board have not been consolidated and are not reported on the
"Consolidated Balance Sheet". The operations of this joint board have also
not been consolidated. The "Con4olidated Statement of Operations" includes
only the following contributions made by the municipality to the boards:
Exeter and Area Fire Board
1983
$ 36.661
1982
$ 33,142
5.• Net Long Term Liabilities
(a) The balance of net liabilities reported on the "Consolidated Balance
Sheet" is made up of the following:
Total long term liabilities incurred by the
municipality including those incurred on
behalf of school boards outstanding at the
end of the year amount to
Of the long term liabilities shown above, the
responsibility for payment of principal and•0
interest charges has been assuaed,by the
}heron County Board of Education. At the end
of the year, the outstanding principal amount
of this liability is
1983
1982
1,283,083 1,302,462
51.116 77.176
Dec. 31/83
Operations of School Boards and the County of Huron (cont'd)
Of the long term liabilities shown above, the
responsibility for payment of principal and
interest changes -for tile drainage loans has
been assumed by individuals. At the end of
the year, the outstanding principal amount of
this liability is
1,090,884
Net long term liabilities at the end of the year $ 141.083
1,067,704
$ 157,582
(b) Of the net long term liabilites reported in (a) of this note, $141,083 in
principal payments are payable from general municipal revenues sum-arized
as follows:
(c)
1984 1989
to to
'1988 1993
91,244
49,839
Total
$ 141,083
Approval of the Ontario Municipal Board has been obtained for the pending
issues of long term liabilities.
In January, 1984 approval of the Ontario Municipal Board was obtained for
debentures issued in 1984 in the amount of 580.000 to finance the unfinanced
capital outlay at the end of 1983 resulting from the new building constructed
in 1983 not fully financed during 1983.
6. Reserves and Reserve Funds
The total balance of reserves and reserve funds of 5298,450 (1982 $302,119)
is made up of the following:
Set aside for specific purpose by Council
for working capital
for debenture repayment
Set aside for specific purposes by legis-
lation, regulation or agreement
for park purposes
for loans under the Ontario Home
Renewal Plan
Total
1983 1982
66,000 55,000
81,685 83,029
815 660
149,950 163,430
$ 298,450 $ 302,119
7. 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" are as follows:
1983
Principal payments 16,499
Interest 15,898
The charges for long
or by individuals in
assistance loans are
term liabilities
the case of tilt
not reflected in
1982
24,635
18,423
$ 32.397 $ 43,058
assumed by the non -consolidated entities
drainage and shoreline property
these statements.
8. Contingent Liabilities
The municipality is contingently liable for long term liabilities with respect
to tile drainage loans, and to those for which the restfonsibility for the
payment of principal and interest has been assumed by school hoards.
The total amount outstanding as at December 31, 1983 is 51.142,000 (1982
$1.144,860) and is not recorded on the "Consolidated4Balance Sheet".
9. Changes in Accounting Policies
Effective January 1, 1983. Ontario municipalities and their local hoards must
follow the accounting principles outlined in the Muni, tpal Financial Reporting
Handbook. The new Handbook substantially revised many of the ..cteunting and
reporting requirements applicable to Ontario municipalities for the fiscal year
1983. The 1982 figures presented for comparative purposes have been restated,
where determinable, to conform with the new presentation in 1983. The following
summary outlines the more significant changes made.
(i)
(11)
All local boards. municipal enterprises and utilities that are
politically accountable to the municipality as listed in note 1 (a)(i)
are consolidated.
Previously assets were not segregated between restricted and un-
restricted. For 1983 the assets of reserves funds are now reported
es restricted assets.
(Iii) "Capital outlay financed by long term liabilities and to be
recovered in future years" on the Consolidated Balance Sheet includes
the amounts previously described as "Capital outlay to he recovered
in future years" with the exceptions of amounts for tile drainage
loans.
Similarily the related long-teeM liabilities with respect to tile
drainage loans are also excluded from the Consolidated Balance Sheet.
(iv) The underlevies (or overlevies) for school boards and the region (or
county), which had previously been recorded as fund balances at the
end of the year on the Consolidated Balance Sheet, are now reported
as other assets (or other liabilities).
As a result of the above changes, the effect on the Consolidated Statement of
Operations has been an increase (or decrease) of S2 in the net change in
municipal fund balances for 1983. The retroactive effect on the fund balances
on the Consolid,ted Balance Sheet as at December 31, 19$2 have been reflected •
in the 1982 comparative figures in this report and is summarized below.
To he used to offset (or to be recovered from) taxation
or user charges
Originally reported amount 91,744
Add: Restatement arising from the following change tri
principle underlevtes (or overlevies) for
school boards and county 2
$ 91,746
Restated amount