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HomeMy WebLinkAboutClinton News-Record, 1987-11-25, Page 24Page 8A-CLINTON NEWS -RECORD, WEDNESDAY, NOVEMBER 25, 1987 Il mconvoakia IOIO The Corporation of the Village of Bayfield 1986 AUDIT To the Members of Council, Inhabitants and Ratepayers of the Corporation of the Village of Bayfield: We have examined the balance sheet of the General Fund of the Corporation of the Village of Bayfield as at December 31, 1986 and the General Fund statement of operations for the Village 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. In our opinion, these financial statements present fairly the financial position of the Village of Bayfield General Fund as at December 31, 1986 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 applied on a basis consistent with that of the preceding year. Vodden & Bender Chartered Accountants Goderich, Ontario. March 16, 1987. Municipal Auditor's Licence Number 1110. CONSOLIDATED BALANCE SHEET as of December 1986 ASSETS Unrestricted Cash Taxes receivable Accounts receivable Prepaid expenses Restricted -note 6 Cash LIABILITIES AND FUND•BALANCES Liabilities Temporary loans - current purposes capital purposes Accounts payable and accrued liabilities Deferred revenue Other current liabilities - school boards county overlevies - note 2 and Fund balances at the end of the year To be used to offset (or to be recovered from) taxation or user charges - note 5 Unfinanced capital outlay - note 5 Reserves - note 6 Reserve funds - note 6 1986 1985 $ $ 21,060 27,422 38,404 32,570 150,289 14,463 2,791 834 212,544 75,289 56,765 61,225 269,309 136,514 79,217 190,945 40,745 4,866 20,035 588 1,741 45 317,514 20,668 8,672 4,118 (190,945) - 77,303 50,503 56,765 61,225 269,309 136,514 1. ACCOUNTING POLICIES 1 R'S REP RT CONSOLIDATION STATEMENT OF OPERATION for the year ended December 31, 1986 Sources of financing Municipal fund balance at the beginning of the year To be used to offset taxation or user charges 4,118 1986 1986 Budget Actual $ Taxation and user charges Residential and farm taxation Commercial, industrial and business taxation Taxation from other governments User charges Grants Province of Ontario Other municipalities Other Investment income Penalty and interest on taxes Sale of materials Donations and fund raising Sundry Total financing available during the year Application of funds 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 Capital General government Protection to persons and property Transportation services Recreation and cultural services 136,466 25,041 4,795 96,160 138,980 41,641 3,300 3,774 3,900 4,728 462,903 95,826 33,875 154,463 29,800 945 300 88,544 °1;. 1,350 Net appropriation to reserves and reserve funds Municipal f nd balance at the end of To be us -_d to offset taxation or user charges - note Unfinanced capital outlay - note 5 Total applications during the year 8,200 11,280 31,300 the year 5 7,020 462,903 1985 Actual $ $ 4,118 20,098 139,231 119,898 25,510 22,878 5,125 4,761 94,350 89,460 252,835 137,180 47,022 38,823 11,734 7,826 5,488 3,774 3,089 4,326 13,883 10,859 746 - 603,131 459,883 76,126 65,303 30,128 33,582 171,204 168,490 28,989 26,149 700 245 245 800 81,038 82,830 3,579 1,822 20,975 2,355 2,025 9,424 313,181 7,868 34,874 6,688 22,340 50,209 8,672 4,118 (190,945) - 603,.31 459,883 The accompanying notes are an integral part of this financial statement. NOTES TO THE FINANCIAL STATEMENT for the year ended December 31, 1986 The consolidated financial statements of the Corporation of the Village of Bayfield 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 necessarily involves the use of estimates and approximations. These have been made using careful judgments. (a) (1) BAata of Consolidation These consolidated statements reflect the assets, liabili- ties, sources of financing and expenditures of the revenue fund, capital fund, reserve funds and reserves and include the activities of all commlrtees of Council and the Bayfield Fire Area Board (a joint local board). All interfund assets and liabilities are eliminated with the exception of loans or advances between the reserve funds and any other fund of the municipality and the resulting interest income and expenditures. (11) Non -Consolidated Entities There are no non -consolidated entities. (111) Accounting for County and School Board Transactions 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 the municipal fund balances of these financial statements. Overlevlen (underlevies) are reported on the Consolidated Balance Sheet as "other current liabilities" ("other current assets"). (iv) Trust funds and their related operations admtnister•d by the municipality are not conaolidated, but are reported separately on the Trust Funds Statement of Continuity and Balance Sheet. (b) Basis of Accounting (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 periods in which they are paid. (11) 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. (111) Fixed Assets (iv) 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. Capital Outlay to be Recovered In Future Years "Capital outlay to be recovered in future years." which represents the nutetanding,principal portion of unmatured long term liabilities for Municipal expenditures or capital funds transferred to Tither organizations, is reported on the "Consolidated Balance Sheet". 2, OPERATIONS OF SCHOOL BOARDS AND THE COUNTY OF HURON Further to note I (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 less 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 3. TRUST FUNDS School Boards County $ $ 232,190 69,936 230.839 69,591 1,351 345 33 12 5. MUNICIPAL FUND BALANCES AT THE END OF THIS YEAR (a) 1,384 m@'v 357 (b) Trust funds administered by the Municipality amounting to $11,394 (1985 $11.493) have not been included in the "Consolidated Balance Sheet" nor have their operations been included in the "Consolidated Statement of Operations". 4. NET LONG TERM LIABILITIES (a) The balance of the net long term 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. other municipalities and municipal enterprises 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 for tile drainage and shoreline property assistance loans has been assumed by Individuals. At the end of the year, the out- standing principal amount of this liability is Net long term liabilities at the end of the year (b) Of the net long term liabilities reported in (a) of this note $3,726 payments are payable from 1987 to 1991; and $5,474 from 1992 to 1996 there- after and are summarized as follows: ba ) From benefitting landowners 1986 1985 $ s 9,200 (9,200) 1 98 7 1992 to to 1911 1996 3,726 5,474 The Municipality is contingently liable for long ter liabilities with respect to tile drainage and shoreline property assistance loans, and for those for which the responsibility for the payment of principal and interest has been assumed by other municipalities, school boards and unconsolidated local hoards. municipal enterprises. and utilities. The total amount outstanding as at December 31. 1986 is $9,200 (1985 $Nil) and is not recorded on the "Consolidated Balance Sheet". The balances on the "Consolidated Statement of Operations" of municipal equity (or deficit) of ($182,273) (1985 $4,118) at the end of the year are comprised of the following: - For general reduction of taxation - Acquisition of fixed assets 4o be recovered through Federal or Ontario grants or the proceeds of long term liabilities 1986 1985 $ $ 8,672 4,118 (190,945) (182,273) 4,118 Approval of the Ontario Municipal Board has been obtained for the pending issue of long term liabilities and for those commitments to be financed from revenues beyond the term of Council. 6. RESERVES AND RESERVE FUNDS The total balances of reserves and reserve funds of $77,303 (1985 $50.503) and $56,765 (1985 $61,225) respectively are made up of the following: Reserves net aside for specific purpose for acquisition of roads building for acquisition of roads equipment for working capital - general ' for working capital - Marina for water system Total reserves Increase (Decrease) During 1986 1986 1985 by Council 15,000 30,418 15,418 2,800 2,800 7,000 37,250 30,250 - 4,835 4,835 2,000 2.000 - 26,800 77,303 50,503 Reserve funds set aside for specific purpose by Council for recreation programs and facilities (17,231) 650 for acquisition of Fire Area building 12,946 42.950 17,881. 30,004 (4,285) 43.600 47.885 Reserve funds set aside for specific purposes by legislation, regulation or agreement for park purposes from subdividers for the Heritage Conservation District Total reserve funds 159 2,744 2,585 (334) 10,421 10,755 (175) 13.165 13.340 (4,460) 56,765 61,225 Reserve funds consist of cash $56,7651 985 $61,225) included on the balance sheet as restricted assets.