The Citizen, 1996-05-22, Page 11THE CITIZEN, WEDNESDAY, MAY 22, 1996 PAGE 11.
(.4 TOWNSHIP OF HULLETT
CONSOLIDATED FINANCIAL STATEMENT AS AT DECEMBER 31, 1995
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 HuHen as at December 31, 1995 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 of December 31, 1995 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.
Vodden, Bender & Seebach Clinton, Ontario
Chartered Accountants February 22, 1996
CONSOLIDATED BALANCE SHEET as at December 31, 1995
ASSETS
1995 1994
35,321
181,953
142,369
32,550
71.944
LIABILITIES
YEAR
1995
53,908
70,024
257,500
61.572
1994
61,572
1,152
179,905
32,979
167,396
38,000
61,204
(7,188)
336,800
35 321
Restricted
Cash
Unrestricted
Cash
Taxes receivable
User charges receivable
Accounts receivable
Account payable and accrued liabilities
MUNICIPAL FUND BALANCES AT THE END OF THE
To be used to offset (or to be recovered from)
taxation or user charges (note 6)
Unfinanced capital outlay (note 6)
Reserves (note 7)
Reserve funds (note 7)
$ 443.004 $ 464,137 $ 443.004 $ 464.137
The accompanying notes are an integral part of this financial statement
CONSOUDATED STATEMENT OF OPERATIONS as at December 31, 1995
1995 1995 1994 1995 1995 1994
Budget Actual Actual Budget Actual Actual
SOURCES OF FINANCING; APPLIES TO;
Taxation and user charges Current operations
Residential and farm taxation 1,406,989 1,424,539 1,344,058 General government 175,121 164,235 134,360
Commercial, Industrial and business taxation 163,820 165,193 154,306 Protection to persons and property 72,016 67,735 72,107
Taxation from other governments 25,006 25,500 25,270 Transportation services 294,885 317,586 270,219
User charges 92,436 111,436 73,059 Environmental services 48,108 30,876 28,118
Grants Health services 4,100 3,616 4,041
Province of Ontario 483,117 463,977 409,096 Recreation and cultural services 45,675 44,638 44,681
Other municipalities 6,000 6,023 36,716 Planning and development 8,051 12.437 9.309
Other 647,956 641,123 562,835
Investment income 13,667 22,276 15,672 Capital
Penalty and interest on taxes 17,000 24,438 23,323 Road and bridge construction 8,459 143,035
Deduct: Amounts received or receivable Road department equipment 152,000 104,586 50,616
for county and school boards (note 2) (1.277.992) (1,288.280) (1.196,946) Municipal building 177,812 178,055 7,188
930,043 955,102 884,554 Municipal drains 65.000 65.580 61.725
Net appropriations from reserves 58,709 58,709 394,812 356,680 262,564
Net appropriations to reserves 20,110
MUNICIPAL FUND BALANCES MUNICIPAL FUND BALANCES
AT THE BEGINNING OF THE YEAR (note 6) AT THE END 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 61,204 61,204 14,971 taxation or user charges 70,024 61,204
Unfinanced capital outlay (7.188) (7.188) Unfinanced capital outlay (7.188)
Total financing available during the year $ 1,042,766 $ 1.067,827 $ 899.525 Total applications during the year $ 1,042,768 $ 1,067,827 $ 899,525
The accompanying notes are an integral part of this financial statement
NOTES TO FINANCIAL STATEMENTS for the year ended December 31, 1995
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 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(aX3) the taxation, other revenues, and requisitions of the school boards and County of Huron are comprised of the following:
school boards county
Taxation and user charges 977,683 270,260
Share of payments in lieu of taxes 12,309
Share of taxation of telephone gross receipts 21.457 6.571
Amounts requisitioned $ 999.140 $ 289.140
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 $23,760. (1994: $16,199.), the Clinton Fire Area Board of $13,807. (1994: $16,751.), and
the Seaforth Fire Area Board of $11,901. (1994: $17,880.). The municipality's share of the Blyth District Fire Area Board accumulated net revenue at December 31, 1995 is $4,772. (1994:
$1,540.) and of the Clinton Fire Area Board accumulated net revenue at December 31,1995 is $103. (1994: $1,808.).
4. Trust funds
Trust funds administered by the municipality amounting to $70,234. (1994: $87,001.) 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 four 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 1995 was $7,938. (1994: $8,101.) 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 $70,024. (1994: $54,016.) at the end of the year are comprised if the following:
1995 1994
for general reduction (increase) of taxation
acquisition of fixed assets to be recovered through
7. Reserves and reserve funds
The total balance of reserves and reserve funds of $ 319,072. (1994: $372,121.) consists of the following:
70,024
taxation
61,204
(7,188)
70.024 54.016
1995 1994 1995 1994
Reserves set aside by council Reserves set aside by council
for working funds 186,500 205,000 for fire expenditure 51,373 28,631
for roadways capital expenditure 58,000 35,000 for landfill restoration 10.199 6,690
for disposal site capital expenditure 13,000 13,000 $ 61.572 $ 35.321
for other capital expenditure - 83,800
$ 257.500 $ 336.800
8. Net long-term liabilities
The municipality is contingently liable for long-term liabilities with respect to 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, 1995 is $326,208. (1994: $298,492.) 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 1995. For the Township of Hullett the target amount for each year Is $5,205., and the amount
deferred is $1,301.
1. Accounting policies