HomeMy WebLinkAboutThe Huron Expositor, 1984-04-25, Page 16A18 - THE HURON EXPOSITOR, APRIL 25, 1884
TOWN OF SEAFORTH AUDITOR'S REPORT
STATEMENT OF NOTES TO THE FINANCIAL
OPERATIONS CONT'D STATEMENTS CONT'D
To the Members of Council, Inhabitants
and Ratepayers of the Corporation of
the Town of Seaforth
We have examined the consolidated balance sheet of the Corporation of the
Town of Seaforth 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
testa and other procedures as we deemed necessary in the circumstances.
In our opinion, these consolidated financial statements present fairly the
financial position of the Corporation of the Town of Seaforth es 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 10 to the financial statements, on a
basis consistent with that of the preceding year.
APPLIED TO:
Current operatlons
General govenunem
Protection 10 persons and propcny
Transportation services
Environmental services
Health services
Social and family services
Recreation and cultural service,
Planning and development
Other
Capital
General government
Protection to persons and property
Transportation services
Environmental services
Health services
Social and family ,,nice,
Recreation endculturalServices
Planning and development
Other
Budget
1983 •
$
Actual
1983
s
Actual
1982
The operations of the joint boards have also not been consolidated. The
"Consolidated Statement of Operations" includes only the following
contributions made by the,municipality to those boards:
198,192
277,334
171,215
126,061
190,463
282,097
156,223
149,329
231,152
218,330
177,081
159.618
100
84,667
3,500
16
101,919
15,650
122,853
17,903
• 861,069 • 895,697 926,945
Seaforth and District Community Centres
Management Committee
Seaforth and District Community Centres
Building Committee
Seaforth Fire Area Board
1983 1982
$22,795 $ 8,538
- 12,715
64,470 32,944
2,500
36,860
160.746
45,000
14,200
398
20,446
172,736
42,912
•
14,049
2,153
649
152,183
28,570
•
•
•
33,029
260,246
250,541 216,584
OAoC
London, Canada Chartered Accountants
February 13, 1984 Licence No. 797
CONSOLIDATED
BALANCE SHEET
as at December 31, 1983
ASSETS
Unrestricted
Cash
Investments (note 4 )
Taxes receivable
User charges receivable
Accounts receivable
Other current assets
Long term receivables
Restricted
Cub
Investments (note )
Accounts receivable
Other current uses
Long lam rccelyibla
Investment in sten debentures
Capital outlay financed by long term liabilities
and to be recovered In Ibtnre years (note 5 )
LIABILITIES
Temporary loam
Accounts payable and accrued liabilities
Other current Itabilitla
Net long resin liabilities (nota 5 )
FUND BALANCES AT THE END
OF THE YEAR (note 6 )
To be used to offset (or to be recovered
from) tuauon or user charges (note 6 )
Unexpended capital financing (or capital
operations not yet permanently financed) (note
Reserves (note 7
Reserve funds (nota 7 )
Extraordinary los, (note )
Net eppropriations to reserves and reserve funds •
MUNICIPAL FUND BALANCES
AT THE END OF THE YEAR (nate 6 )
To 6e used to offset (or to tee
recovered from) taxation or user charges
Unexpended capital financing (or
capita operations not yet
financed)
• 4,499
$87,265 $54,197
4.- Investments
The total of investments of $22,000 (1982 $46,500) recorded' on the
"Consolidated Balance Sheet" at cost, have a market value of $22,000
(1982 $46,500) as at the end of the year.
5. Net Long Term Liabilities
(a) The balance of net liabilities reported on the "Consolidated Balance
Sheet" is made up of the following:
1983 1982
• (46,000) • (40,893) (55,674)
Total applications during the year
1983
5
22,100
73,813
• 127,420
• 938
• 224,171
58,604
45,414
104,018
33,000
361,189
62,966
78,755
141,661
33,000
1982
$
46,500
95,347
53,642
• 195,489
55,460
•
• 59,974
▪ 115,374
42,000
• 352,663
34,056
93,074
6,324
133,454
42,000
(40,893) (55,674)
8E,210 • 88,210
139,211 i 144,873
361,189 352.663
CONSOLIDATED
STATEMENT
OF OPERATIONS
for the year ended December 31, 1983
SpURCES OF FINANCING:
Tdx,uon sod user charges (nets
aesldrnti.l and farm assns+
Commercial trd»Mal cad
M aine01 amnion
Tnwim I't alum gm••ernnenu
Use. chargee
Deduct Mamma rteean! a reeeiv,ble
fa ,c070, or many, and Waal !muds
Grant.
Gmetren ant of Caned.
Pro+snet of Ontario
Other annkipxesin
Centrihmums from deretuttn
became. [room*
S.6, of land
Other
Proceeds from the test. of loos
teras Ilabl(Ala.
Extraordinary .In (nota )
Net epproprl.ttoes from rem, s
sod reform fatale
MUNICIPAL FUND BALANCES AT
THE BEGINNING OF THE YEAR (note 6 )
To be ,sed to effete (a to be
...maned Semen) tmsuon or user charges
Unexpended capital financing (a
capital operations COI yes
fooe,.4)
Taal financing mailable during de year
Budget
1983
Actual Auual
1983 1982
t t
575.667 551,748
117.566
74,000
151,077
110,810
21.938
1 1 1 , 1)e
506,531
292,229
25,527
142,007
,2 173,37(4 1 .( 074,631 ) . 400,107 )
7.951
440,196
70,179
7,100
10,000
32,372
4,160
471,171
71,074
11,511
11,400
94,157
NIL 811.
16,176 r 7,667 .
(49,350) (55,674)
• 1,075,315
500
582,688
26,754
30,352
00 00
42,716
Ri L
(7,603)
• 1,105,345 • 1,092,354
• 1,075.315 • 1,105.345 • 1,092,354
NOTES TO THE
FINANCIAL STATEMENTS
1. Accounting Policies
(a) Basis of Consolidation
(i) Consolidated Balance Sheet
This statement reflects the assets and i.abIlltiea of the revenue
fund, reserve funds, the capital fund and include° the activities
of all committees of Council.
(it) 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.
(111) Hon -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 entitle,.
The 'Consolidated Statement of Operations' does not reflect their
revenues and expenditures except to the extent of the
municipalities contributeen to those entities.
Those entities which are not consoldiated are ea follow.:
- Seaforth Bu`ioo ooa Improvement Area Board of Management
- Seaforth and bi trlct Cocaunity Centres Hanngement Committee
- Seaforth end District Community Centres Building Committee
- Seaforth Ffre Area Board
- Seaforth Public Utility Con ieoion - Waterworks Department
(iv) The taxation, other revenues, expenditures, ascots and
liabilities with respect to the operations of the school boards,
and the County of Huron oro not reflected in these financial
statements except to the extent that overlevie, (underlevieg)
reported on the 'Consolidated Balance Sheet" ea "other
liabilities' (-other current assets").
n .)
(b) Baste of Accounting
are
(1) Sources of financing and expenditures areeported on the accrual
basis of accounting vlth the exception of principal end interest
charges on long tern liabilities itch are charged ageinet
operations In the periods in which they are paid. The principal
and interest charges are not accrued for the period fros the date
of the latest installment payment to the end of the financial
year.
(11) The Accrual bailie of accounting recognizes revenues se they
become available and measurable es a result of receipt of goods
or services and the creation of a legal obligation to pay.
(111) Capital Outlay to be Recovered in Future Tears
The historical cost and accumulated depredation of fixed a1aets
are not reported for municipal purposes. Instead the "Capital
outlay to be recovered in future years", which represents the
outstanding principal portion of unmetured long tern liob11(tiea
for municipal expenditures or capital funds transferred to other
organizations, to reported on the "Consolidated Balance Sheet-.
2. Operations of the School Boards and the County of Huron
Further to note 1.(a)(iv), the taxation, other revenues, expenditures and
overleviea (underlevieg) of the achool boards and the County of Huron ere
comprised of the following:
School
Boards County
Taxation $338,689 $86,747
Payments in lieu of taxa. 670 345
339,359 87,092
Requisition:
342,853 87,431
Supplementary taxes 2,172 554
345.025 87,985
Overleviee (underlevieg) for the year
Overlevles (underlevieg) at the beginning
of the year 5,431 893
Overlevies (underlev{es) At the end
of the year $ (235) $ NIL
(5,666) (893)
These revenues and expenditures are not reflected in the "Consolidated
Statement of operation. The overleviee (underlevles) at the end of the
year are reported as other liabilities (other current assets) on the
"Consolidated Balance Sheet".
3. Contributioua to Unconsolidated Joint Boardd
Further to note (.(.)(iii), the assets and liabilities of unconsolidated
joint boards have not been consolidated and are not reported on the
'Consolidated Balance Sheet".
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 year end amount to $192,000 $248,000
Of the long Germ liabilities shown above,
the responsibility for the payment of
principal and interest charges has been
assumed by the Huron County Board of
Education for a principal amount of
(159,000) (206,000)
Net Long Term Liabilities at the end of
• the year $ 33,000 $ 42,000
(b) Annual payments required on the net long term liabilities are as
follows: �
Principal Interest
1984 $ 10,000
1985 11,000
1986 12,000
$ 2,870
1,794
615
$ 33,000 $ 5,279
6. Municipal Equity (or Deficit) at the end of the year
The balance on the "Consolidated Statement of Operations" of municipal
equity (or deficit) of $(40,893) (1982 $55,674) at the end of the year is
comprised of the following:
1983 1982
For general reduction (increase) of
taxation "$(10,893)' $(55j694)''4I
ear,
7. Reserves and ReserveiFunds
The total balance of reserves and reserve funds of $227,421 (1982
$233,083) in made up of the following:
8.
Set aside for specific purpose by
Council - for industrial development
- for working capital
Set snide for specific purpose by
legislation, regulation or agreement
- for loano under the Ontario
Home Renevnl Plan
Charge for Net Long Tern Liabilities
1.983 1982
$ 65,146 $ 62,354
67,346 67,300
132,492 129,654
94,929 103.429
$227,421 $233,083
Total chargee for the year for net long term liabilities which are
reported on the -Consolidated Statement of Operations' are as follows:
Principal
Interest
9. Contingent Liabilities
1983 1982
$ 9,000 $ 8,000
3,844 4,715
$ 12,844 $ 12,715
The cuniclpallty in contingently liable for long tern liabilities for
which the responsibility for the payoent of principal and interest ham
been aroused by the school board. The total amount outstanding at
December 31, 1983 10 $159,000 (1982 $206,000) and 1a not recorded on the
'Consolidated Balance Sheet
10. Menges in Accounting Policies
Rffective January 1, 1981, Ontario Municipalities And their local boards
suet follow the accounting principles outlined in the Municipal Financial
Reporting Handbook. The new Handbook substantially revised many of the
Recounting and reporting requirements applicable to Ontario
Municipalities for the fecal year 1983. The 1982 figure. 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:
(i) Previously assets were not segregated between restricted and
unrestricted. Por 1983 the aseete of reserve fueda ere now
reported as reatricted assets.
(11) The underlevle, (overleviea) for school boards and the county,
which had prevtonely been recorded as fund balances at the end of
the year on the 'Consolidated Balance Sheet", are now reported are
mete (liabilities).
Aa a reault of the above changes, the effect on the "Consolidated
Statement of Operations" has been an increase of $235 in the net change
in municipal fund balances for 1983. The retroactive effect on the fund
balances on the "Consolidated Balance Sheet" 89 at December 31, 1982 have
been reflected in the 1982 comparative figures to this report and fa
summarized below:
Originally
Reported Restated
To be recovered frof6 taxation or
user chargee 5(49,350) 8(55,674)
88,210 88,210
144,873 144,873
5183,733 5(77,409
This reetetement arise, from the following change in princlplea.
Underlevies (overleviea) for 'school
boards and county $ 6,324
Reserves
Reserve funds