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HomeMy WebLinkAboutClinton News-Record, 1986-12-03, Page 11CLINTON NEWS -RECORD, WEDNESDAY, DECEMBER 3, 1986 -Page 11 The Corporation of the Village of Bayfield 1985 AUD 1 TOR'S REPORT To the Members of Council, Inhabitants and Ratepayers of the Corporation of the Village of Bayfield: To the Members of Council, Inhabitants and Ratepayers of the Corporation of the Village of Bayfield:' We have examined the consolidated balance sheet of the Corporation of the Village of Bayfield as at December 31, 1985 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 their operations it was not practicable to fully verify the revenues of. the Bayfield Community Centre and the Bayfield Recreation Centre. We did, however, verify that the revenues reported were those recorded in the books and that the recorded revenues were deposited to the bank accounts. In our opinion, except for the revenue reported being those revenues recorded as outlined in the preceding paragraph, these financial statements present fairly the financial position of the Village of Bayfield and the entities indicated above as at December 31, 1985 and the results of their operations for the year then ended in accordance with the accounting principles prescribed for Ontario Municipalities applied on a basis consistent with that of the preceding year. Coderich, Ontario. June 10, 1986. Licence No. 1110. g., A i Vodden & Bender Chartered Accountants s CONSOLIDATION BALANCE SHEET as of December 31, 1985 ASSETS Unrestricted Cash Taxes receiyable Accounts 'receivable Prepaid expenses Other current assets - school boards and county underlevy - (note 2) Restricted (note 5) Cash Accounts receivable 'Long terra receivables LIABILITIES AND FUND BALANCES Liabilities Temporary loans Accounts payable Deferred revenue Other current liabilities - school county overlevy - (note 2) and accrued liabilities boards and Fund balances at the end of the year To be used to offset (or to be recovered from) taxation or user charges - (note 3) Reserves - (note 5) Reserve funds - (note 5) 1985 $ 27,422 32,570 14,463 834 75.289 61,225 61,225 136,514 20,035 588 45 1984 18,947 21,298 25,380 888 3,942 70,455 •53,401 9.316 5,175 67,892 138,347 20,000 22,938 493 426 20,668 43,857 4,118 50,503 61,225 20,098 6,500 67,892 136.514 138.347 1. ACCOUNTING POLICIES CONSOLIDATION STATEMENT OF OPERATION for the year ended December 31, 1985 1985 Budget Municipal Hand balance at the beginning of the year To be used to offset (or to be recovered ' (from) taxation or user charges 20,098 Sources of financing Taxation and user charges Residential and farm taxation 118,447 Commercial, industrial and business taxation 22,601 Taxation from other governments 4,775 User charges 79,400 Grants Government of Canada - Province of Ontario 108,253 Other municipalities 48,947 Other Investment income Penalty and interest taxes Sale of materials Donations and fund raising Expenditures Current operations General government Protection to persons and property Transportation services Environmental services Health services Social and family services Recreation and cultural services Planning and development 9,038 2,034 2,300 4,810 400,605 65.861 41,473 141.395 26,800 350 400 67,338 1,394 1985 1984 Actual Actual 20,098 (505) 119,898 22,878 4,761 89,460 137,180 38,823 7.826 3,774 4,326 10,859 112,783 20,131 4,461 80,509 539 116,368 34,554 6,966 3,607 3,457 11,496 439,785 394,871 65,303 53,097 33,582 168,490 26,149 245 800 24,503 119.706 23,551 1,000 50 82,830 80,646 1,822 6,348 Capital , General government - 2,355 1.453 Protection to persons and property - 9,424 Transportation services 22,183 7,868 Recreation and cultural services 3.055 6.688 Net appropriation to reserves and reserve funds 44,420 Municipal fund balance at the end of the year To be used to offset (or to be recovered from) taxation or user charges 414,669 6.034 50,209 455,765 15,584 8,289 7.810 32,231 374,268 4.118 20.098 NOTES TO THE FINANCIAL STATEMENT for the year ended December 31, 1985 (a) Basis of Consolidation (i) Consolidated Balance Sheet This statement reflects the assets and liabilities of the revenue fund, reserve funds, and the capital fund; and in- cludes the activities of all committees of Council and the r.+ Bayfield Fire Area Board (a joint local board). All inter - fund assets and liabilities are eliminated with the excep- tion of loans or advances between the reserve funds and other funds of the municipality. (ii) Consolidated Statement of Operations This state+went reflects the consolidated sources of financing and expenditures of the revenue fund, reserves, reserve funds, and the capital fund of the municipality and includes the activities of all committees of Council and the Bayfield Fire Area Board (a joint local board). All interfund sources of 'financing and expenditures are eliminated with the exception of interest income and expense arising from loans and advances between the reserve funds and other funds of the municipality. (iii) 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 t'o the extent that overlevies (underlevies) are reported on the Consolidated Balance Sheet as other current liabilities (other current assets). (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. (b) Basis of Accounting Sources of financing and expenditures ate 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 pay- ment to the end of the financial year. (11) The accrual basis of accounting recognizes revenuli 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. (1) (iii) Fixed Assets The historical cost and accumulated depreciation for fixed assets are not recorded for municipal purposes. Fixed assets are reported as an expenditure on the Consolidated Statement of Operations in the year of acquisition. For those fixed assets financed or to be financed by the issue of long term indebtedness, the principal and interest on the long term Indebtedness are also reported on the Consolidated Statement of Operations an they are paid. (iv) Capital Outlay to be Recovered in Future Years "Capital outlay to be recovered in future years." which represents the outstanding principal 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 Further to note 1 (a) (111) the taxation, other revenues, expenditures and overlevies (underlevies) of the school boards and the County of Huron are comprised of the following: Taxation on ratepayers, telephone companies, and Ontario Housing Corporation Requisitions and share of supplementary taxes leas share of taxes written off Overlevies (Underlevies) for the year Overlevies (underlevies) at the beginning of the year Overlevies (underlevies) at the end of the year School Boards County $ Y $ 216,590 58,649 212,615 59.063 3,975 (414) (3.942) 426 mm�m®33 e.sa®12 These revenues and expenditures are not reflected in the Conaolidated Statement of Operations. The overlevies (underlevies) at the end of the year are included as (other current liabilities) other curtent assets on the Consolidated Balance Sheet. 3, MUNICIPAL EQUITY (OR DEFICIT) AT THE END OF THE YEAR 0 (a) The balance on the Consolidated Star +ment of Operations of municipal equity of $4,118 (1984 $20%098) at the end of the year is to offset or to be recovered from taxation or user charges. 4. RESERVES AND RESERVE FUNDS The total balance of reserves and reserve funds of $111,728 (1984 $74.392) is made up of the following: Increase (Decrease) During 1985 1985 $ $ Set aside for specific purpose by Council for acquisition of roads building 15,418 15,418 for acquisition of Fire Area building 5,975 30,004 for recreation programs and facilities 10,997 17,881 for working capital 28,585 35,085 for employee benefits (805) - for street lights (10,650) 49,520 98.388 1984 24,029 6,884 6,500 805 10,650 48,868 Set aside for specific purposes by legislation, regulation or agreement for park purposes 159 2,585 2.426 for loans under the Ontario Home Renewal Program (12,873) - 12,873 for the Heritage Conservation District 530 10,755 10,225 Total (12,184) 13,340 25,524 37,336 111,728 -74,392 ' 5. ONTARIO HOME RENEWAL PROGRAM - TRUST FUNDS Effective January 1, 1985, amendments to regulations require that the Ontario Home Renewal Program funds be accounted for as a trust fund and no longer as a reserve fund. This transfer of the fund balance has reduced the total opening reserve fund balances by $12,873, and is not reflected in rhe Consolidated Statement of Operations. The 1985 transactions for this Program are reflected in the financial statements for the trust funds of the municipality. 6. TRUST FUNDS Trust funds administered by the Municipality amounting to $11,493 (1984'$ Nil) have not been included in the .'Consolidated Balance Sheet" nor have their operations bean included in the "Consolidated Statement of Operations".