HomeMy WebLinkAboutTimes Advocate, 1984-11-21, Page 14Plage 2A
M4cGIWVRAY & Co
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Novombor 21, 1984 Of STEPNEN FINANCIAL STATEMENTS
Ismis a tfr* Sasser
AUDITORS REPORT
To the *ambers of Council, Inhabitants
and Ratepayers of the Corporation of
the Township of Stephen
We have examined the consolidated balance sheet of the Corporation of the
Township of Stephen 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 includes such tests and
other procedures as we considered necessary in the circumstances, except as
explained in the following paragraph.
Due to a lack of internal control, our examination of the books and records
of the local boards was limited to an examination of the receipts and disbursements
as recorded in the books of the local boards. Accordingly, we were unable to
determine whether any adjustments might be necessary to fees and service charges
revenue, parks and recreation expenditures, cash, user charges receivable, accounts
payable and accrued liabilities and municipal equity.
In our opinion, except for the effect of adjustments, if any, which we may
have determined to be necessary concerning the above, these consolidated financial
statements present fairly the financial position of the Corporation of the Township
of Stephen as at December 31, 1983 and the results of its operations for the year
then ended in accordance with generally accepted accounting principles for Ontario
municipalities applied, after given retroactive effect to the changes in accounting
policy as explained in note 10 to the financial statements, on a basis consistent
with that of the preceding year.
Goderich, Ontario,
March 14, 1984,
Licence No. 810.
CHARTERED ACCOUNTANTS
CONSOLIDATED BALANCE SHEET
ASSETS
1983
UNRESTRICTED
Cash
Taxes receivable
User charges receivable
Accounts receivable
Inventory
RESTRICTED
Cash
Due from 0.W.R.C.
Long term receivable - O.H.R,P. loans
CAPITAL OUTLAY TO BE RECOVERED IN FUTURE YEARS (note 5)
LIABILITIES
CURRENT
Temporary loans
Accounts payable and accrued liabilities
Other
NET LONG TERM LIABILITIES (note 5)
FUND BALANCES
1982
$ 200,032 $ 172,875
304,562 248,728
41,787 14,086
102,247 62,015
11,750 9.035
660,378 506,739
20,472 54,520
10,651 9,483
231.354 220,927
262,477 284,930
48,434 50,720
$ 971,289 $ 842,389
$ 235,600
142,284
92.983
470,867
48,434
519,301
?IUNICIPAL EQUITY
To be used to offset taxation or user charges (note 6) 59,810
Capital operations not yet permanently financed (note 6) (125,085)
RESERVES (note 7) 255,077
RESERVE FUNDS (note 7)
262,186
$ 971,289
CONSOLIDATED STATEMENT OF OPERATIONS
Budget Actual
1983 1983
SOURCES OF FINANCING:
Taxation and user charges
Residential and farm taxation
Commercial, industrial and business taxation
Telephone levies
Water and sewer billings
Taxation from other governments
Fres and service charges
Apportionment guarantee grant
Deduct: amount received or receivable
for county and school boards
Grants
Government of Canada
Province of Ontario
Other municipalities
Other
Municipal capital drainage collections
Water area collections
Penalty and interest on taxes
Investment income
Sundry
TOTAL FUNDS RAISED FOR Ti(F YEAR
NET APPROPRIATIONS FROM RESERVES AND RESERVE FUNDS
(note 7)
MUNICIPAL FUND BALANCES - BEGINNING OF YEAR
To he used to offset taxation or user charges
(note 6)
Capital operations not yet financed (note 6)
TOTAi. FINANCING AVAILABLE FOR THE YEAR
APPLIED TO:
Current operations
General government
Fire
Conservation authority
Protective inspection and control
Roadways
Street lighting
Waterworks system
Garbage collection
Garbage disposal
Public health services
Cemeteries
Parks and recreation
Planning and development
Municipal drains
Capital
Waterworks
Roadways
Municipal drains
Fire
Parks and recreation
General government
Public health services
TOTAL. FUNDS FXPC DED FOR THE YEAR
NF:T APPROPRIATIONS TO RESERVES AND RESERVE FUNDS
(note 7)
MUNICiPAI. FUN() BAiANCES - END OF YEAR
To be used to offset taxation or user charges
(note 6)
Capital operations not yet financed (note 6)
TOTAL. APPLICATIONS FOR TiIE YEAR
4
I i
$ 392,400
92,253
28,639
513,292
50,720
564,012
7,850
(261,296)
248,394
283,429
$ 842,389
1.
For the Year Ended December 31, 1983
ACCOUNTING POLICIES
(a)
Beats of Consolidation
(1) 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 committeesof council and the following
local boards, municipal enterprises and utilities which ere
under the control of council:
Township of Stephen - Waterworks
Centralia Centennial Community Centre Board
Dashwood Community Centre Board
Crediton Community Park Board
Stephen Township Community Centre Board
Stephen Township Arena Board
Stephen Township Recreation Committee
Huron Park Recreation and Community Centre Board
Dashwood Athletic Field Board
Crediton and Huron Park Area fire Committee
Dashwood and Area Medical Centre
(ti) 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 and
municipal enterprises and utilities described in note 1(e)(i).
(iii) Non -consolidated Entities
For those local boards, municipal enterprises, and utilities of
the municipality 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 and expenditures except to the extent of the
municipality's contribution to those entities.
Those entities which are not consolidated are as follows:
Police Village of Centralia
Police Village of Crediton
Police Village of Dashwood
Township of Stephen - Municipal Electrical Utility
South Huron Recreation Complex
Grand Bend and Area Fire Board
Exeter and Area Fire Board
Pinery Cemetery Board
(iv) 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".
Basis of Accounting
(b)
2. OPERATIONS
(1)
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 period in which they are
paid. The principal and interest charges are not accrued
for the period 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; 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.
(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 rep-
resents the outstanding principal portion of unmatured long
term liabilities for municipal expenditures is reported on the
"Consolidated Balance Sheet".
OF SCHOOL BOARDS AND THE COUNTY OF HURON
The taxation, other revenues, expenditures and overlevies (underlevies) of
the school boards and the County of Huron are comprised of the following:
Taxation
Grants
Requisitions
Overlevies (underlevies) for the year
Overlevies - beginning of year
Overlevies - end of year
School
Boards County
$962,077 $314,109
65 , 539
962,077 379,648
961,983 379.730
94 (82)
669 269
$ 763 $
187
These revenues and expenditures are not reflected in the "Consolidated
. Statement of Operations".
The overlevies at the end of the year are reported as other liabilities on
the "Consolidated Balance Sheet",
3, CONTRIBUTIONS TO UNCONSOLIDATED JOINT BOARDS
Further to note 1(a)(iii), the assets and liabilities of unconsolidated
joint boards have not been consolidated and are not reported on the
"Consolidated Balance Sheet".
The operations of these joint boards have also not been consolidated, The
Actual "Consolidated Statement of Operations" includes only the following con -
1982 tributions made by the municipality to those boards:
$1,252,567 $1,256,788 $1,145,335
392,681 397,238 362,211
43,516 43,516 38,176
117,459 54,262
81,225 88,458 78,871
142,291 159,429 190,640
65,539 65,539 72,271
1,977,819 2,128,427 1,941,766
(1,333,448) (1,341,725) (1,226,388)
644,371 786,702 715,378
5,760
1,250,372
3,492
13,738
1,340,578
16,766
1,259,624 1,371,082
6,180
422,845
9.532
438,557
- 86,354 15,406
302,000 331,510 3,350
17,000 28,884 28,752
13,500 27,513 40,309
100 397 5,968
332,600 474,658 93,785
2,236,595 2,632,442 1,247,720
2,717 14,560
1,254 7,850 83,291
(261,296) (54.706)
1,254 (253,446) 28,585
$2,240,566 $2,393,556 $1,276,305
Budget Actual Actual
1983 1983 1982
$ 171,510 $ 165,273 $ 205,800
89,414 74,196 86,009
16,215 16,215 17,117
9,400 15,277 9,236
310,200 327,911 269,140
4,000 1,189 -
6,301 118,197 65,995
9,000 2,878
30,000 32,379 33,189
3,058 1,640
4,000 5,959 6,000
138,326 155,554 151,087
23,757 18,278
13,643 6,517
788,366 955,486 870,008
1,208,000 1,212,295 76,141
209,400 197,327 186,056
50,078 160,638
30,000 39,055 4,204
4,590 17,909
4,800 - 4,941
38820
1,452,200 1,503,345 488,909
2,240,566 2,458,831
59,810
(125.085)
(65,275)
1,358,911
170,834
7,850
(261.296)
(253,446)
$2,240,566 $2,393,556 $1,276,305
(
•
Police Village of Dashwood - fire
South Huron Recreation Complex
Grand Bend and Area Fire Board
Exeter and Area Fire Board
Pinery Cemetery Board
1983 1982
$ 3,087
2,763
35,152
10,700
5,959
$ 11,405
2,619
13,387
9,019
6.000
$ 57,661 $ 42,430
The municipality is contingently liable for its share, which is approximately
507., of the accumulated deficits to the end of the year for these boards,
Police Village of Dashwood
1983 1982
$(11,617) $(13,707)
4. TRUST FUNDS
Trust funds administered by the municipality amounting to $1,057 (1982 - $1,057)
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
(a) The balance of net long term linbilities reported on the "Consolidated
Balance Sheet" is made up of the following:
1983 1982
Total long term liabilities incurred
by the municipality including those
incurred on behalf of the school boards
and outstanding at the end of the year
amount to
Of the long term liabilities shown
above, the responsibility for payment
of principal and interest charges has
been assumed by school hoards. At the
end of the year, the outstanding principal
amount of this liability is
Of the long term liabilities shown
above, the re-:ponsblllty for payment
of principal nd interest charges for
tile drainage loans have hecn assumed
by individuals. At the end of the
year, the outstanding principal amount
of this liability is
The total value of the Ministry of the
Environment Debt Retirement Fund which
has been accumulated to the end of the
year to retire the outstanding long
term liabilities Included above,
amount to
$2,277,949 $2,331,117
(94,754) (127,918)
$(2,117,986)5(2,142,990)
(16,775) (14,489)
$ 48,434 $ 50,720
(b) Of the net long term liabilities repotted in (a) of
in principal payments are payable from 1984 to 1988,
to 1993, $4,450 thereafter and an estimated $35,084
earned on the Ministry of the Environment Debt Retir
this period. The liability is recoverable from spec
rates and special water charges.
Approval of the Ontario Municipal Board has been obtained for the long
term liabilities reported on the "Consolidated Balance Sheet".
(c)
this note, $4,450
$4,450 from 1989
interest will he
'Tnpnt Fund during
Jal eater urea
6. MUNICIPAL DEFICIT
(a)
The balance on the "Consolidated Statement of Operations" of municipal
deficit of $(65,27) (1932 - $253,446)) at the end of the year is
comprised of the followitg:
- for general reduction (increase) of taxation $
- for general reduction of user charge:
- for benefitting landowners related t
special charges and spe,ial areas
- for benefitting landowners related to
municipal drains
- for benefitting landowners related to
water areas
1983
60,416
8,583
(9,209)
59,810
1982
$ (40)
7,890
7,850
(55,306) (152,983)
(69.779) (108,313)
(125,085) (261,296)
$ (65,275) $(253,446)
(b) Approval of the Ontario Municipal Board has been obtained for the
pending issues of long term liabilities totalling $104,100.
7. RESERVES AND RESERVE FUNDS
The total balance of reserves and reserve funds of $517,263 (1982 - $531,823)
is made up of the following:
8.
Set aside for specific purpose by Council
- for working capital
- for sick leave
- for capital expenditures - roads
- recreation
- fire
- local boards
- water
Set aside for specific purposes by Legislation,
Regulations or Agreement
- for loans under the Ontario Home Renewal Plan
- for water contingencies
Increase (Decrease) For The Year
1983 1.982
$157,000
50,000
7,283
10,000
10,331
20.463
$157,000
10,000
50,000
10,000.
10,331
11.063
255,077 248,394
251,535 273,946
10,651 9.483
262,186 283,429
$517,263 $531,823
$(14,560) $170,834
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:
Principal payments including contributions
to the Ministry of the Environment Debt
Retirement Fund
Interest
1983 1982
$ 890 $ 890
5.618 5.618
$ 6,508 $ 6,508
The charges for long term liabilities assumed by the school boards or by
individuals in the case of the tile drainage loans are not reflected in
these statements.
9. CONTINGENT LIABILITIES
The municipality is contingently liable for long term liabilities with
respect to tile drainage loans, and to those for which the responsibility
for the payment of principal and interest has been assumed by school boards.
The total amount outstanding as at December 31, 1983 is $2,212,740 (1982 -
$2,265,908) and is not recorded on the "Consolidated Balance Sheet".
10. CHANGES IN ACCOUNTING POLICIES
Effective January 1, 1983, Ontario municipalities and their local boards
tmust follow the accounting principles outlined in the Municipal Financial
Reporting Handbook. The new !landbook substantially revised many of the
accounting 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)
All local boards,municipal enterprises and utilities th4t are
politically accountable to the municipality as listed in note
1(a)(i) are consolidated whereas previously the Police Village
of Centralia, time Police Village of Crediton and the Police
Village of Dashwood were consolidated.
Previously assets were not segregated between restricted and unrestricted.
For 1983 the assets of reserves funds are now reported as restricted
assets.
"Capital outlay to be recovered in future years" on the Consolidated
Balance Sheet includes the amounts previously described as "Capital
outlay to be recovered in future years" with the exception of unfinanced
capital outlay and tile drainage loans.
Similarly, the related long term liabilities with respect to tile
drainage loans are also excluded from the Consolidated Balance Sheet,
The overlevies for school boards and the connty which had previously
been recorded as fund balances at the end of the year on the Consolidated
Balance Sheet, are now reported as liabilities.
The prelevies for tile drain loans, which had previously been recorded
as fund balances at the end of the year on the Consolidated Balance
Sheet, are now reported as liabilities.
As a result of the above changes, the effect on the Consolidated Statement of
Operations has been a decrease of $12,570 in the net change in municipal fund
balances for 1983. The retroactive effect on the fund balances on the
Consolidated Balance Street as at December 31, 1982 have been reflected in the
1982 comparative figures in this report and is summarized below.
Originally
Reported Restated
To be used to offset taxation or user charges $ 23,224 $ 7,850
Capital operations not yet permanently
financed
Reserves
Reserve Funds
(261,296) (261,296)
271,402 248,394
283,429 283,429
$ 316,759 $ 278,377
This restatement arises from the following changes in principles:
Consolidation $(10,763)
Prelevies for tile drain loans (26,681)
Overlevies for school boards and county (938)
Net Effect $(38,382)
WATERWORKS
ASSETS
UNRESTRICTED
Cash
User charges receivable
RESTRICTED
Due from the Ministry of the Environment
CAPITAL OUTLAY TO BE. RECOVERED IN FUTURE YEARS
LIABILITIES
CURRENT
Accounts payable and accrued liabilities
Due to the Township of Stephen
NET i.ONC TERM LIABILITIES
FUND BALANCES
MUNICIPAL EQUITY
To be used to offset user charges
RESERVE
RESERVE. FUND
STEPHEN TOWNSHIP ARENA
REVENUE
Ice rental, concession booth, and other
EXPENDITURE
Wages and benefits
Capital expenditure
Heat and hydro
Telephone
Repairs and maintenance
Supplies
Insurance
General
Transfer to reserve
DEFICIT FOR THE YEAR
1
1983 1982
$15,910
16.924
$25,272
13.911
32,834 39,183
10,651 9,483
48,434 50,720
$91,919 $99,386
$ 9,000 $ 5,717
4.188 14,513
13,188 20,230
48,434 50,720
61,622 70,950
8,583 7,890
11,063 11,063
10,651 9,483
$91,919 $99,386
1983 1982
$101,044 $101,855
48,500 44,611
625 8,734
20,871 17,411
627 658
16,633 12,320
13,852 10,374
3,550 10,625
9,955 8,468
1.283 -
121,896 113,201
$(20,852) $(11,346)
em,nsiesse. .,mss
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