Loading...
The Citizen, 1995-05-31, Page 10205,000 35,000 13,000 56,500 27.300 $ 336.800 28,631 6.690 $ 35.321 205,000 50,000 26,674 13,000 56,500 $ 351.174 PAGE 10. THE CITIZEN, WEDNESDAY, MAY 31, 1995. TOWNSHIP OF HULLETT CONSOLIDATED FINANCIAL STATEMENT AS AT DECEMBER 31, 1994 To the Members of Council, Inhabitants and Ratepayers of the Corporation of the Township of Hullett We have audited the consolidated balance sheet of the Corporation of the Township of Hullett as at December 31, 1994 and the consolidated statement of operations for the year then ended. These financial statements are the responsibility of the township's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these consolidated financial statements present fairly, in all material respects, the financial position of the Corporation of the Township of Hullett as at December 31, 1994 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. Clinton, Ontario March 14, 1995 Vodden, Bender 81 Seebach Chartered Accountants CONSOLIDATED BALANCE SHEET AS AT DECEMBER 31. 1994 1993 1994 1993 1994 ASSETS LIABILITIES Restricted Accounts payable and accrued liabilities 38,000 58,754 Cash 35,321 Unrestricted MUNICIPAL FUND BALANCES AT THE END OF THE YEAR Cash 181,953 96,031 To be used to offset (or to be recovered from) Taxes receivable 142,369 137,422 taxation or user charges (note 6) 61,204 14,971 User charges receivable 32,550 73,364 Unfinanced capital outlay (note 6) (7,188) Accounts receivable 71,944 118.082 Reserves (note 7) 336,800 351,174 $ 464,137 $ 424,899 Reserve funds (note 7) 35.321 $ 464,137 $ 424,899 CONSOLIDATED BALANCE SHEET AS AT DECEMBER 31, 1994 1994 1994 1993 1994 1994 1993 Budget Actual Actual ud Iet AsAlla Actual SOURCES OF FINANCING: APPLIED TO: Taxation and user charges Current operations Residential and farm taxation 1,331,467 1,344,058 1,284,576 General government 145,920 134,360 134,567 Commercial, industrial and business taxation 152,636 154,306 144,454 Protection to persons and property 74,340 72,107 66,583 Taxation from other governments 25,070 25,270 25,603 Transportation services 313,388 270,219 285,084 User charges 58,265 73,059 32,846 Environmental services 45,340 28,118 32,246 Grants Health services 3,970 4,041 7,466 Province of Ontario 412,700 409,096 318,017 Recreation and cultural services 41,858 44,681 40,833 Other municipalities 35,000 36,716 212 Planning and development 8.901 16 497 11,578 Other 633,717 570,023 578,357 Property owners' municipal drain assessments - - 24,898 Capital Investment income 11,667 15,672 10,813 Road and bridge construction 161,200 143,035 45,946 Penalty and interest on taxes 17,000 23,323 19,299 Road department equipment 50,616 Deduct: Amounts received or receivable Municipal drains 60.000 61.725 59.399 for county and school boards (note 2) (1,186,492) (1,196,946) (1,132,339) 221,200 255,376 105,345 857,313 884,554 728,379 Net appropriations to reserves 17,367 20,110 Net appropriations from reserves 21,955 MUNICIPAL FUND BALANCES MUNICIPAL FUND BALANCES AT THE END OF THE YEAR (note 6) AT THE BEGINNING OF THE YEAR (note 6) To be used to offset (or to be recovered from) To be used to offset (or to be recovered from) taxation or user charges 14,971 14,971 (12,510) taxation or user charges 61,204 Unfinanced capital outlay (7.188) 14,971 Unfinanced capital outlay (39,151) Total applications during the year $ 872,284 $ 899,525 $ 698,673 Total financing available during the year $ 872,284 $ 899,525 $ 698,673 The accompanying notes are an integral part of this financial statement NOTES TO FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31. 1994 1, ACCOUNTING POLICIES The consolidated financial statements of the Township of Hullett 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 involves the use of estimates and approximations. These have been made using careful judgements. (a) Basis of consolidation (1) These consolidated statements reflect the assets, liabilities, sources of financing and expenditures of the revenue fund, capital fund,, reserve funds and reserves and include the activities of the recreation and community centre board which is under control of council. All interfund assets and liabilities and sources of financing and expenditures have been eliminated with the exception of loans or advances between reserve funds and any other fund of the municipality and the resulting interest income and expenditures. (2) Non-consolidated entities The Blyth District Fire Area Board, Clinton Fire Area Board and Seaforth Fire Area Board, which are joint local boards, are not consolidated. (3) Accounting for county and school board transactions The taxation, other revenues, expenditures, assets and liabilities with respect to the operations of the County of Huron and school boards are not reflected in the municipal fund balances of these financial statements. (4) Trust funds and their related operations administered by the municipality are not consolidated but are reported separately on the trust funds statement of continuity and balance sheet. (b) Basis of accounting (1) Sources of financing and expenditure are reported on the accrual basis of accounting with the exception of principal charges on long-term liabilities which are charged against operations in the periods in which they are paid. (2) 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. (3) The historical cost and accumulated depreciation of capital assets are not reported for municipal purposes. Capital assets are reported as an expenditure on the consolidated statement of operations in the year of acquisition. (4) "Capital outlay to be recovered in futures years" which represents the outstanding principal portion of unmatured long-term liabilities for municipal expenditures or capital funds transferred to other organizations is, when such balance exists, reported on the consolidated balance sheet. 2. Operations of school boards and county Further to note 1 (a) (3) the taxation, other revenues, and requisitions of the school boards and County of Huron are comprised of the following: School boards oc Taxation and user charges 889,689 267,923 Share of payments in lieu of taxes 12,170 69523 5° Share of taxation of telephone gross receipts Amounts requisitioned $ 910.195206 676 $ 286.751 3. Contributions to unconsolidated joint boards Further to note 1(a)(2) the municipality has made contributions to the Blyth District Fire Area Board of $ 16,199. (1993: $ 18,329), the Clinton Fire Area Board of $ 16,751. (1993: $ 13,751.), and the Seaforth Area Board of $17,880. (1993: $ 9,936.). The municipality's share of the Blyth District Fire Area Board's accumulated net revenue at December 31, 1994 is $ 1,540. (1993: $ 2,501.) and of the Clinton Fire Area Board's accumulated net revenue at December 31, 1994 is $ 1,808. (1993:3 1,744). 4. Trust funds Trust funds administered by the municipality amounting to $ 87,001. (1993: $ 264,763) have not been included in the consolidated balance sheet nor have their operations been included in the consolidated statement of operations. 5. Pension agreements The municipality makes contributions to the Ontario Municipal Employees Retirement Fund (OMERS), which is a multi-employee plan, on behalf of five members of its staff. The plan is a defined benefit plan which specifies the amount of the retirement benefit to be received by the employees based on the length of service and rates of pay. The amount contributed to OMERS for 1994 was $ 8101. (1993: $ 8,574.) for current service and is included as an expenditure on the consolidated statement of operations. 6. Municipal fund balances at the end of the year The balances on the consolidated statement of operations of municipal equity or (deficit) of $ 54,016. (1993: $ 14,971.) at the end of the year are comprised of the following: 1994 61,204 1993 for general reduction (increase) of taxation 14,971 acquisition of fixed assets to be recovered through taxation 7. Reserves and reserve funds (7.188) 574. 14.971 The total balance of reserves and reserve funds of $ 351,174. (1993: $ 351,174.) consists of the following: 119.4 1993 Reserves set aside by council for working funds for roadways capital expenditure for fire expenditure for disposal site capital expenditure for recreation capital expenditure for infrastructure project Reserve funds set aside by council for fire expenditure for landfill restoration 8. Net long-term liabilities The municipality is contingently liable for long-term liabilities with respect to the tile drainage loans recoverable from property owners and payable to the Province of Ontario as loan instalments become due. The total amount outstanding as at December 31, 1994 is $ 298,492. (1993: $ 334,775.) and is not recorded on the consolidated balance sheet. 9. Social Contract The Social Contract Act requires municipalities to reduce expenditures by a specified amount in each of the years 1993, 1994 and 1995. Unconditional grants will be reduced by a corresponding amount each year. The sectoral agreement between the provincial government and the municipal sector, however, provides for the automatic deferral of 25% of the 1993 social contract target amount and the corresponding reduction of unconditional grants until 1996. For the Township of Hullett the target amount for each year is $ 5,205., and the amount deferred is $ 1,301.