The Lucknow Sentinel, 1978-04-19, Page 15Notes to Flnan ciai Stateifl ents
1. ACCOUNTING POLICIES
(a) Statement of Revenue and Expenditure
This statement reflects the revenues and expenditures of the revenue fund.
There are no local boards ex municipal enterprises consolidated in these
results.
(b) Statement of Capital Operations
This statement reflects the capital expenditure of the municipality to be
recovered from the general municipal revenue of the municipality.
In addition to the long term liabilities reported on this statement, the
municipality incurred $28,000 in long term liabilities on behalf of its
municilial enterprises. Repayment of this debt will be from the revenues
of The Lucknow Waterworks and not from general municipal revenues.
(c) Balance Sheet
This, statement reflects the assets and liabilities of the revenue fund, the 1
capital fund, reserve funds and local boards and municipal enterprises as
described in note 1 (a). The assets arid liabilities of local boards and
enterprises that h4ye not been consolidated are reflected°only_to the
extent of their related net long term liabilities and capital outlay to be
recovered in future years.
(d) Fixed Assets
The historical cost and ,accumulated depreciation of fixed assets is not
reported for municipal purposes. Instead, the "Capital outlay to be
recovered in future. years" which is the aggregate of the principal
portion of unmatured long term liabilities is reported on the Balance
Sheet.
(e)
(f)
Municipal enterprises
Municipal enterprises are those activities whose costs are substantially
recovered from service charges on the users; The enterprises of this
municipality whose revenues and expenditures have not been consolidated
in these financial statements are:
Lucknow Hydro
Lucknow Waterworks
Charges for net long term liabilities
Debt retirement costs including principal and interest are charged against
current revenues in the periods in which they are paid. Interest charges
are not accrued for the periods from the dates of the latest interest
payments to the end of the financial year.
2. CAPITAL OUTLAY TO BE RECOVERED IN FUTURE YEARS
(a)
Some capital outlay to be recovered in future years does not represent a
burden on general municipal revenues, as it is to be recovered in future
years from other sources:
municipal enterprises
1977 1976
$40,000 $15,900
(b) Capital outlays, including fixed assets and the transfers of capital funds
in .the.amount of.$3,28.7 which have been financed from general municipal
revenues of the current year, are reported on the Statement of Revenue
and Expenditure.
•
3. NET LONG TERM LIABILITIES
(a)
The balance for net.long term liabilities reported on the Balance Sheet is
made up of the following:
Total long term -liabilities incurred by the municipality
including those incurred on behalf of former school boards,
other municipalities and municipal enterprises and 'out-
standing at the end of the year amount to 195,209
Of the long term liabilities shown above, the responsibility
for payment of principal and interest charges has been
assumed by others for a principal amount of 89,425
Net long term liabilities at the end of the year $105 784
4. ACCUMULATED NET REVENUE (DEFICIT) AT THE END OF THE YEAR
The balance in the revenue. fund at the year end is available to reduce
(to be added to) the levies of'the following classes of ratepayers..
1977 1976
General ratepayers 662 (19,097)
School, board ratepayers 1,535 (972)
County ratepayers 375 (331)
$2,572 ($20,400)
5. CHARGES FOR NET LONG TERM LIABILITIES
Total charges for the year for long term liabilities were as follows:
1977 1976
Principal payments 16,282 12,400
Interest 4,293 3,909
$20,575 $16,309
Of the total charges shown above $15,946 were paid from general municipal
revenues of the. municipality and are included in expenditure on the
Statement of Revenue and Expenditure classified under the appropriate
functional headings. The. remaining $4,629 were recovered from
municipal enterprises for which the related net long term liabilities
were incurred and are not reflected in the statement.
6. LIABILITY FOR VESTED SICK LEAVE BENEFITS
Under the sick leave benefit plan,'unused sick leave can accumulate and
employees may become entitled to a cash payment when they leave the
municipality's employment. ' '
The liability for these accumulated days, to the extent that they have
vested and could be taken in cash by an employee on terminating,
amounted to $2,400 at the end of the year. No provision has been made
for this liability.
'7. THE ANTI-INFLATION ACT
The municipality, its local boards and commissions are by agreement
between the Government of Canada and the Government'of the Provinces of
Ontario dated January 13, 1976, subject to The Anti -Inflation Act..,
(Canada) and the national guidelines. This legislation limits increases
in compensation payments effective October 14, 1975.
1
Lucknow Sentinel, Wednesday, April 19, 1.978 --Page, 15
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