The Huron Expositor, 1987-03-18, Page 12Al2- THE HURON EXPOSITOR, MARCH tS, 198T-
To the Members -of Council. Inhabitants
and RitTpayers of-rhi-tUTPTFT,Tion at
the Town of. Seaforth
We have examined -the consolidated balance sheet of the Corporation of the
Town ef Seifotth as at December 31, 1996 and the Consolidated. statemeht of.
operations forthe year then ended. ' Our examination was made is accordance
with generallyaccepted auditing standards, and accordingly inclUded soch
' tests and other procedures 80 we considerednecessary in the circumstances.."
In'our opinion, these consolidated financial statements present fairly the
financial position of the corporation of. the Town of Seaforth asat,December
31, 1986 and. the results of ita, operWtions for the year then ended in
accordance with the acoUntlkg'prinCiples prescribed 'for Ontario
'Munictpalities'applied on a basis consistent with. that of the preceding year.
London, Ontario
'February 11, 1987.
•
Chartered Accountants
, Licence No. 1239
CONSOLIDATED
BALANCE SHEET
as at December 31, 1986
ASSETS
Unrestricted . •
•
Cash
Taxes receivable' ,
Accounts receivable
Other current assets!
. ,
Restricted
Cash • '
.Accounts receivable
Due from revenue fund
1186 • 1985
$ 83,150
80,476
108,389
•
$107,937
75,344 •
79.610'
927
272,015 263,818
63,863
384
357
64,604
Capital outlay financed by long-term liabilities
and to bo recovered in future years (Note 4) 85,000
LIABILITIES
64,679
368
' 1.319
66,366
12.000
$421,619 $342,184 .
Bank indebtedness 5 -
Accounts payable and accrued•liabilitles , 90,170
90,170
Net long-term liabilities (Note 4) 85,000
FUND BALANCES AT THE END OF THE YEAR
To be used to offset (or to be recovered
from) taxation or'user charges (Note 5)
84,259
Reserves (Note 6) • 91, ef.
Reserve funds (Note6) 64,604,
5421,619
$ 156
108,621
108,783
12,000
'46,325
108,710
66,366
5342,184
lomm.imemsnm.
The accompanying notes are an Integral pert of thie financial statement.
CONSOLIDATED
STATEMENT OF
OPERATIONS
for the year ended
December 31. 1986
Budget Actual
1986 .1986
SOURCES OP FINANCING:
Taxation and user charges
Residential and fern taxation $ 655,304
Commereial, induttrial and
business taaation 413,365
Taxation from other governments ' 31,650
User charges and feeS 176,695
Dedect: Amounts received or receivable
for county and school boat& (511,696)
Great* •
Coved -Inept of cahada
Province of Ontario
Other municipalities
Other
Iniietttent int6Oe
Other
Net apptoptiations.frot reserves
and reserve funds
RERICIPAL 11.61.A1*CEE At tfit.&01)8tiNd
00 tit TEAR (Rote 5)
1,560
616,7514
26,600
1000
102,636
32,000
$ 654,129
428,2/1.
34,256
196,586
(540,116)
1,250
416,994
26,871
• A
3.683
97,532
48,000
To be used to offset (or ta be
recovered fiat) taitatiOO or heel. charges 46,325 •44025 •
Actual
•
1985.
$ 591,523
372,681
31,146
10(076
(488,566)
1,183
524,122
25,013
8,522
58,178'
1,481
Total financing available during the year $1.315,007 $1,407,783 51,328,453
•
.eget Actual Actual
MO. 1886, 1985
APPLIED ttg
Current Operational
General goiergient
Prefeetied 65 Wailes 8n8 property
Tflieripartatien terdieet.
BiatedliMental terViCei
Social And feria*. tetVidea
Reereatlen and Colette1 Setafeet
kinning and' development
S 264,516
276,388
213,125
5, 100-
1,666'
123,d36
41,142
$ 225,464
160,66
266,891
ft0,566
2,606
166,11#
16,756
CONSOLIDATED
STATEMENT OF
OPERATIONS CONT'D
Capital.
'General government '
-Protection to persons and. property
Transportation services
Environmental services
.Recrection and cultural Services
Planning and 'development •
•
•
Net appropriationsto reserves and
reserve funds
MUNICIPAL FUND BALANCES Af THE END OF
TRE YEAR (Noce 5) .
9,000
6,450
171.200
110,000
16,720
313,370
To -be used to offset (or to be recovered
- from) taxation or user charges
'fetal application's during: the yea
i-
202,622-
218,87)
269,167
261,756
182
164,264
9457
• .1481,707 1,015,061
: 8,847 ' .3206
. 5,583 16053 '
'160,671 97,907 .
92,405 130,925
10,739 , 22,090
- .
' 680 '
278,24,5 271,061
30,218 .20,190
- . • 84,259 46,325
, -
51,395,077 • 81,407,783 01„328,453 '
The accompanying notes are .an integral part of this financial statement:
. .
NOTES TO THE
FINANCIAL'
STATEMENTS
December 31, 1986
1. Accounting Policies
(a)
The consolidated financial'statements of the'Corperatton are the
representation of Aanagement prepared in accordance with accounting,
Policiee. preocribedfor Ontario Municipalities by the Minietry of
Municipal Affairs,
•
Bests of.Consolidation
(i) Consolidated Balance Sheet
This statement reflects the owlets and liabilities of 0...revenue
fund, reserve funds, the capital fund and includes the activities
of all committees of Council and the Seaforth Business
Improvement Area Hoard of Management which 1a under the control
of Council.
--------. ,7
All interfund MACS Ag liabilitiet are eiminated with the
exception of loans and advanCeabetveen the reserve funds and
other funds of the Town.
(Li) Consolidated Stateeent 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 Town and the Seaforth Business Improvement
Area Board of Management,. All interfund eourcea of financing and
expenditures are ellminated with the exception of interest income
and expense arising from loans and, advances between the reeerve
funds and ocher funds of ilia
(111.) Nan -consolidated Entities
For those local boards, munteipal enterprises and utilities of
the municipality which are not coneolidated. the "Consolidated
entente Sheet" does not reflect their assets or liabflltiee
except to the extent of anounta due to or from cholla entities.
The "Consolidated Statement of Operations" does not teflect their
revenue* and expenditures except to the extent of the
Town's contribution to those entities.
These entities which are not Consolidated are as 1011010:
•
Seaferth and District ComdUnity Centres Management ComMittee
Seaforth and District Community Centret &aiding Committee
- Seaforth fire Area Departoent
- Seatotth Public Utility Commission - W4terworks Department
- Ontario Home Renewal Program Tenet Fund
(iv) Other revenues, expenditures, assets and liabilities with respect
to the operations of the school boarda, and the County of Huron
are not tenanted In theRii finanttelstatements except to the
extent that ovetlevieS (underldo104) are tepilited Ofl the
°Consolidated balance Sheet" ae "other liabilitiet° ("other
entrant a68tita4).
(b) (mitts of Accounting
(1) Souteee of finarictng and expenditures are reported on the AccruAl
basis of accounting with the exception of principal and intereat
-chargee on long term liabilities Which are charged Against
dperktieris in the periods in which they are Feld. The principal
and interest chargee are not accrued for the petted feed the date
of the latest inetailment paydent• to the end Of the finenetal .
year.
(11) The accrued basis of accounting recognizerevenues at they
becope adailable and measurable; expendttures are recognized es
ghey are intuited and measurable et 4' tetelt of reteipt.Of &edit
or services and the creation Of a legal Obligation tO pay,
(1ll) Coital Outlay to be Recoveted to Future Yeats
The hiatorttal cost And accumulated' depreciation of fixed assets
are not reported for Municipal put:pose*. Inttead the "Capital
outlay to be recovered ih future yettr", which repteeenta the •
6utstat4iwg principal portion of unoatured long tett liabilities
for tunicipal expenditures or Capital funds transferred to other -
organizations, is reported en the 'Consolidated Balance Sheet".
1
2. 'Ober -at -wit of itterSchoot boards- and the •
County of- Huron
further to note 1(4)((0)., the taxation, other revenues', expentitoret and
oVeilevies (UnderlerieS) Of the Sabel board* and the County Of HUren are '
tooptfotd of the folinv.idne
tthool
Beatde County
9415,802 9121,014
AO _596
.416 744 123,417
Requisitions 409,140 121056
Supplementary taxes
Tftatieli
Faftents i* lieu Of taxes
. -.0VetleVies (Ondetleviet) for the year
Chietimen (endefle,r1eS) et the beginning
Of the year
OVerleVIES (UndefieV(eS) At the end .
of tfin 98**
16 699 .123.417
45 014
(455 8iL„
$ NIL RiL
6er444
Thane revenues And eXPedditiffee ate not reflected in the "dintoblideted.
51atetent.of gputatione. the aVetleVfee (andeolev(et) At the Ond Of the
94e are reported as ether liabilities (ether current rieliete) on the
"Cedeolidated Balande Sheet".
•
+ y •-_, '• ^ 1 -*I' • . "
H. NOTES -TO THE
FINANCIAL
STATEMENTS CONT'D
3 -Contributions to Unconsolidated jiiint 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 the joint boards have also not been consolidated. The
"Consolidated Statement of Operations" includes only 'the following ,
contributions made by the'municipality to [hone boards:
1986 '- 1985
-
Seaforth and District ComMunity Centres
•
Management Committee '
. Seaford,. Fire Area Department
•4. Net Long Term Liabilities.
825,463 - 526,611.
.18 386 14 094
• -843,849 $40,795 '
(a) The balance of net liabilitielareported on the "Consolidated talents.
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 year end amount to 085,000 813,848
Of the long term liabilities shown above,
the responsibility for the payment of
principal and interest charges has been
.Assumed
- The Huron County Board of Education II 848)
1986 1985 .
Net long-term liabilities 81 the
end of the year $85,000 $12,000
(b) Total charge.; for the year for net long term liabilities which are'
reported On the "Consolidated Statement of Operations" are as
follows:
Principal .
interest
'. 1986 1985
$ 12,000 $ 11,009
639 1 829
$ 12,639 • 5 12,829
g'.-1Municipa1 fund balances at the end of the year
The balance on the 40onoo4idated Statement of Operationa" of municipal
equity of $84,259 (1985 - $46,325) at the end of the year is comprised of
the following;
1986 1985
For general reduction (increase) of
taxation ., $ 84,259 $ 36,983
For reduction of Business Improvement ,
• Area taxation - 9,342
$ 46,325
$ 84,259
EL Reserves and Reserve Funds
a) The total balance of reeerves and reserve funda•of 5162,190 (1985 -
5175,076) is lade up. of the followings.
1986 1985
Set Aside for specific putpote by
Council for industrial development $ 36,689 5 48,913
' - for working capital 77,504 109,453
for heritage 17,779 16,710
- for buetness improvement 30,218
162,190 175,076
Riaerves - included above 1.7,884 108,710
Reeetee funds 8,64,604 $ 66,366
b) Effective January 1, 1985, amendments to regulation requite the
Ontario Home Renewal trograi funds be accounted for at a trust Lind
and no lenge* ae a reserie fedd. The transfer of the fund balance
he reduced the total opening reserve fund balances 69,905,650 and is
net if:fleeted in the consolidated stateMent of operations. The 1985
trentactioni"for this program ere tefletted in the financial
81ee069645 for the trust funds of the municipality.
7% Unfunded Pension Liability
During the year the tOwn amended' by-qaii number 667 Syich that policemen
are how entitled 18 retire at 60 years of age As oppbeed to 65 years of
age.
The net effeet of Chit change vas -an underfunding in the PeliCimen't
pension plan of $28,613 at Tannery 1, 1985, the effective date of the
change.
The town intends t6 pay this amount plut Interest In fite 01141 annual
inatelments of 57,041; the first instalment having been paid in becembet
1985.
the unfunded balance as at beceribet 31, 1986 of $18,146 has net been
accreed in these financial statements.
8. Contractual Obligation - Ministry of the FErivirrinrnent
in accerdance with a serviee agreement entered into b9 the Terra in 1975
with the Ministry of the EnetronMent, the existing sewage system is owned
and opetated by the Mintatry. The Town Is obligated to meet all
opefating tests add eepay the long-term liebilltiet related to thii
project.
Included in the "Consolidated Statement of Operation.," are the 1986
Chargee &OM the Ministry Of 6117.„258. The "Conselfdated BalanCe Shaet"
does not reflect any mitts or liabilities.pertaining to the Sewage
system except to the extent of service charges due to the HinfOtty.
Infornatiod received from the Ministry as at
•
ACC6MUlated net ottOlOS
10'66 debt ehatigt*
Total OUfetahang 186g -tern liabilities
Mara 31. 1986 indicate* 'the
- • .
9. ComMitinents
0148,266
$ 81,892'
• 9783,463
The Corporation Of the 08118, 81 Seaforth hae edteted trite An agfeeMent
With' the Hititage' .68848. tautiottorii 18 OattinipAte and ingonot 8 A*1n
5t100 Conddi 8tottsoio4, th9 tetunttnt ogoltdd August 14, 084 and the
tete): edit of the otopitt is *oitto01o6t0ly 9168,„610 over t6e Ited of the
igtontintt.
•