HomeMy WebLinkAboutThe Wingham Advance-Times, 1988-08-09, Page 11,.>•••••• -• •
??'
TOWN OF
FINAN.
TO THE COMNISSIONERS,
MEMBERS OF COUNCIL,
INHABITANTS AND RATEPAYERS OF
THE CORPORATION OF THE
TOWN OF WINGHAM
(-6
AliotikininqApleaft
4 ,
' . 4
TATEMENTOF EQUITY
(WITH CQMPARATyEjjji
AUDITOR'S REPORT
I HAVE EXAMINED THE BALANCE SHEET OF THE TOWN OF WINGHAM
PUBLIC UTILITIES COMMISSION - ELECTRIC AS AT DECEMBER 31, 1987 AND
THE STATEMENTS OF OPERATIONS AND EQUITY', AND CHANGES IN FINANCIAL
POSITION FOR THE YEAR THEN ENDED. MY EVAN/NATION WAS MADE IN ACCORD-
ANCE WITH GENERALLY ACCEPTED AUDITINGSTANDARDS, AND ACCORDINGLY
INCLUDED SUCH TESTS AND OTHER PROCEDURES AS I CONSIDERED NECESSARY IN
THE CIRCUMSTANCES,
IN MY OPINION THESE FINANCIAL STATEMENTS PRESENT FAIRLY THE
FINANCIAL POSITION OF THE TOWN OF WINGHAM PUBLIC UTILITIES COMMISSION
- ELECTRIC AS AT DECEMBER 31, 1987 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 YEARL,
WINGHAM, ONTARIO
NOG 2W0
APRIL 29, 1988
ASSETS:
CURRENT
CASH
ACCOUNTS RECEIVABLE
UNBILLED REVENUE
INVENTORY
OTHER CURRENT ASSETS
BARRY W. REID
CHARTERED ACCOUNTANT
LICENSE NUMBER 1147
BALANCE AT BEGINNING OF YEAR
NET INCOME FOR THE YEAR
BALANCE AT END OF YEAR
FOR 1
$1;2374514
E.vtim+TmuEEEEE.
119,P90
4111,Sfi384
STATEMENT OF CHANGES IN FINANCIAL POSMO
FOR. THE 'YEAR ENDED DECEMBER 31,19871/4,
BALANCE SHEET AS AT DECEMBER 31, 1987
(WITH COMPARATIVE FIGURES FOR 1986)
1987
4-A
FIXED ,
LAND
BUILDINGS, PLANT AND EQUIPMENT
LESS: ACCUMULATED DEPRECIATION
•
$52,896
156,959
299,622
94,840
2,022
----------
606,339
----------
8,454
1,602,412
----------
1,610,866
• 683,007
927,859
(WITH COMPARATIVE FIGURES FOR1986)
SOURCE OF FUNDS:
NET INCOME FOR THE YEAR BEFORE EXTRAORDINARY ITEMS
ITEMS NOT REQUIRING FUNDS:
DEPRECIATION
LESS: AMORTIZATION OF CONTRIBUTED CAPITAL
TOTAL SOURCES FROM OPERATIONS
CHANGE IN CONTRIBUTED CAPITAL
EXTRAORDINARY ITEM
TOTAL SOUReES OF FUNDS
1987 .19S6
4.7 4,494 IgiCr
$36,782 $91,609
60,640
(-
815)
1986
$133,935
37,789
, 287,409
96,210
3,026
----------
558,369
96,607
2,000
83,008
181,615
--------
52,696.
741)
143,564
666
0
144,230
-------
8,454
1,487,414
APPLICATION OF FUNDS;
NET ADDITIONS TO FIXED ASSETS
INCREASE IN OTHER ASSETS
TOTAL APPLIEATION OF FUNDS
NET INCREASE (DECREASE) IN WORKING CAPITAL
WORKING CAPITAL, AT START OF YEAR
WORKING CAPITAL, AT END OF YEAR
114,999
4,040
----____
119,039
62,576
382,094
$444,670
M.MMMMMOS
78,569
0
62.9 61613
78,569
65,661
316,432
-------_
$382,093
1,495,868
622,367
873,501
REPRESENTED BY:
CURRENT ASSETS
LESS: CURRENT LIABILITIES
OTHER
OTAER NON-CURRENT ASSETS
EQUITY IN ONTARIO HYDRO
1'
•
4.040
0
• ..
$606,339 $558,369
161,669 176,276
$444,670 $382,093
1,540,121
1,393,453
$3,078,359
W=MMAZIM=1,12192211
$2,825,323
B.234.26.3313.=
LIABILITIES:
CURRENT
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
CONSUMER DEPOSITS
OTHER CURRENT LIABILITIES
$146,825
5,391
9,453
161,669
$163,417
5,900
6,959
176,276
DEFERRED CREDITS:
CONTRIBUTED CAPITAL SUBJECT TO AMORTIZATION
LESS: AMORTIZATION TO DATE
NOTES TO THE FINANCIAL STATEMENTS
- YEAR ENDED DECEMBER 31, 1987' -
NOTE (1): SIGNIFICANT ACCOUNTING POLICIES
094.11,1621,641
THE FINANCIAL STATEMENTS HAVE BEEN PREPARED IN ACCORDANCE WITH ACCOUNTING
PRINCIPLES FOR MUNICIPAL ELECTRICAL UTILITIES IN ONTARIO AS REQUIRED BY ONTARIO HYDRO
UNDER THE AUTHORITY OF SECTION 97 OF THE POWER CORPORATION ACT AND REFLECT THE FOLLOW-
ING POLICIES AS SET FORTH IN THE MANUAL "ACCOUNTING FOR MUNICIPAL ELECTRICAL UTILLTIES
IN ONTARIO". ALL PRINCIPLES EMPLOYED ARE IN ACCORDANCE WITH GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES.
(A) REVENUE RECOGNITION:
23,909
4,724
19,185
21,909
3,909
18,0002>
EQUITY:
EQUITY IN ONTARIO HYDRO
UTILITY EQUITY
1,540,121
1,357,384
1,393,453
1,237,594
SERVICE REVENUE IS RECORDED ON THE BASIS OF REGULAR METER READINGS AND
ESTIMATES OF CUSTOMER USAGE SINCE THE LAST METER READING DATE TO THE END OF
THE YEAR.
(B) FIXED. ASSETS AND DEPRECIATION:
---------- 7 --
THE STRAIGHT-LINE METHOD OF DEPRECIATION SHALL BE USED FOR ALL ASSETS,
THE PREVIOUS SINKING -FUND METHOD OF DEPRECIATION FOR GENERAL PLANT ASSETS
WAS CONVERTED TO THE STRAIGHT-LINE METHOD JANUARY 1, 1981.
2,897,505
011.4.04medlema4M.W.241.401,
$3,078,359
2,631,047
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1987
(WITH COMPARATIVE FIGURES FOR,1986)
1987
$960,459
859,998
17,947
SERV7tE REVENUE:
RESIDENTIAL
GENERAL
STREET LIGHTING
SERVICE REVENUE ADJUSTMENT (NOTE 2)
COST OF POWER
POWER PURCHASED - ONTARIO HYDRO
GROSS MARGIN ON SERVICE REVENUE
OTHER REVENUE:
RENTAL INCOME
INTEREST EARNED
LATE PAYMENT CHARGES
MISCELLANEOUS
EXPENSES:
OPERATING AND MAINTENANCE EXPENSE
BILLING AND COLLECTING
GENERAL ADMINISTRATION EXPENSE
DEPRECIATION
LESS: AMORTIZATION OF CONTRIBUTED CAPITAL
INTEREST EXPENSE
NET INCOME BEFORE EXTRAORDINARY ITEM
EXTRAORDINARY (TEM
PRM TER4444 NO MOMENT
NET INCOME
-4.
1,838,404
12,213
1,850,617
1,620,796
229,821
6,401
5,823
6,652 '
7,207
-----
26,083
25,625
43,755
90,230
60,241
815)
86
06,414m4.61.0-a*...le
219,122
36,782
PAN0Q8
$119,790
Elem. 1E,
$2,825,323
M.01211211=====
1986
$920,691
1,774,250
17,323
2,712,264
( 105,015)
2,607,249
2,313,728
293,521
6,756
7,000
8,374
6,121
--_-
28,251
••••• -----
43,384
51,101
83,631
51,197
741)
1,591
---_-_-__
230,163
91,609
p.$91,609
IDENTIFIABLE FIXED ASSETS (BUILDINGS AND SUBSTATIONS), SHALL BE KEPT ON
THE BOOKS UNTIL RETIRED OR SOLD. A GAIN OR A LOSS SHALL BE RECORDED ONLY IN
THE YEAR OF RETIREMENT OR SALE OF THE FIXED ASSET. INDIVIDUAL ASSETS RE-
CORDED ON A GROUP BASIS (OVERHEAD AND UNDERGROUND DISTRIBUTION SYSTEM,
TRANSFORMERS AND METERS), SHALL. BE KEPT ON THE BOOKS UNTIL FULLY DEPRECIATED
REGARDLESS OF ACTUAL SERVICE LIFE.
(C) INVENTORY:
----------
UTILITIES WITH INVENTORY SYSTEMS SHALL CHARGE TO INVENTORY THE COST OF
ALL METERS AND TRANSFORMERS PURCHASED FOR STOCK IN THE YEAR.
(D) LONG-TERM DEBT:
PRINCIPAL PAYMENTS OF DEBENTURES AND OTHER LONG-TERM DEBT SHALL BE
TREATED AS A REDUCTION OF DEBT PAYABLE AND SHOWN AS AN APPROPRIATION OF NET
INCOME. SINCE PRINCIPAL PAYMENTS WILL NO LONGER BE TREATED AS AN EXPENSE,
AN ACCRUAL OF PRINCIPAL PAYMENTS WILL BE NO LONGER NECESSARY,
DISCOUNT AND EXPENSES OR PREMIUM ON DEBENTURES
INTEREST EXPENSE IN THE SAME PROPORTION OF PRINCIPAL RETIRED TO OUTSTANDING
DEBT IN THE CURRENT FISCAL YEAR FOR EACH DEBENTURE ISSUE.
(8) CONTRIBUTED CAPITAL:
--------
-77
ALL NONREFUNDABLE CAPITAL CONTRIBUTIONS RECEIVED AFTER JANUARY 1, 1980,'
SHALL BE ACCUMULATED IN "CONTRIBUTIONS IN AID OF CONSTRUCTION - AFTER
JANUARY 1, 1980". ALL CAPITAL CONTRIBUTIONS SHALL BE CLEARLY IDENTIFIED
WITH THE APPROPRIATE ACQUIRED FIXED ASSET - E.G. OVERHEAD DISTRIBUTION
SYSTEM; UNDERGROUND DISTRIBUTION SYSTEM; TRANSFORMERS OR METERS. THESE
NONREFUNDABLE CAPITAL CONTRIBUTIONS SHALL. BE AMORTIZED AT THE SAME RATE
USED FOR THE DEPRECIATION OF THE RELATED FIXED ASSET.
NOTE (2): SERVICE REVENUE ADJUSTMENT
CUSTOMER USAGE FROM THE LAST BILLING DATE TO THE YEAR END (UNBILLED REVENUE)
, IS INCLUDE° IN REVENUE. '
UNBILLED REVENUE, BEGINNING OF YEAR
UNBILLED REVENUE, END OF YEAR
SERVICE REVENUE ADJUSTMENT
1987
$287,409
299,622
$12,213
MOSIORISIMM=Mm
1986
$392,424
287,409
($105,015)
THE ADJUSTING POWER BILL RECEIVED FROM ONTARIO HYDRO IS RECORDED IN TME YEAR
TO UMW tr VIPERS.
114
triki1
00.000*.00me40.41.emo4.*ARstipiosoys,.1,001,1oete.00,0*wo.00,,,,,ye.460moio.ophadamo4oba.simo.tywowA440iettri4orlownweoklbosuch.-114*W4t4,144000000.000000..en.eirn004thoa.00000o0rmeme03neemitomomeortitmleetifeeWet
c,,e4
4