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Clinton News-Record, 1985-5-15, Page 29Page M CLI) TON NEWS -RECORD, WEDNESDAY, MAY 15, 1985 FINANCIAL STATEMENTS DECEMBER 31, 1984 THE HURON, COUNTY BOARD OF R r UCATION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 1984 AUDITORS' REPORT To the supporters of the Huron County Board of Education We have examined the balance sheet of The Huron County Board of Education as at December 31, 1984 and the revenue fund statement of revenue and expenditures and the capital fund statement of operations for the year then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests and other procedures as we considered necessary in the circumstances. In our opinion, these financial statements present fairly the financial position of the Board as at December 31, 1984 and the results of its operations for the year then ended in acco('dance with the accounting principles described in note 1 to the financial statements applied on a basis consistent with that of the preceding year. London, Canada March 15, 1985 :hartered Accountants. ..i'_e_nse No. 332. • CI 11 ^1F nT l THE HURON COUNTY BOARD OF EDUCATION BALANCE SIH:ET DECEMBER 71'1984 (with comparative amounts at December 11, 1981) ASSETS (((1/NUE FUDR Cash and term deposits Accounts receivable: • Government of (Intarin Local taxation' - Supplementary ta0es Other school bo,rds Sundry Prepaid expenses InA: 1_+11 )8,1, 75 5115 ;'10 1"1 , 1',4 '1,t51 x.411 14,418 'Inn 1'N. a . I.1A11)1.1 r..1.1.:; A__D f I,D1 TY q. „rot9 Arial, 1e • latat ion • o,••1' r•'q•n a It ion T "it It,•o,••nr ,) I, ,•1•` .1c„••,npe p,1' 1.h l" .111'3 :1,1-1,11•11 P•. m•r a 41,0 h„Irds (1.16 I,, •.,1.11 al bunt 1667 1•, r, .,•i'+' Innd R,.•;,•r u1' Ids 6./ 107 log Tvn,ia (nut„ I) $ 4 )! 5 11“1.15.,. 611 p.r:a41e Accounts receivable 7,775 pnm ,t nr•1 1'•••uli r,• ,I••bt (urt ''> Due from revenue fund Capital outlay to he recovered in tot.° years__ x,11•, •, f0 (statement 1)+ -"-- t ,,112.'ntn Due from revenue fund P1.SER7E_ F'1'111 1RI1ST FUND Cash investments - at cost which approximate.; milrket value On behalf of the Rnard Pi rorr•,r $... 49, • 4 1:.,. Ili 171141v , •,n 133.11 (nolo 6) $ q 9I.. 1; 3,741 'holt Inn1•: (m,),' 1): nil ,•, /"`;:innlelt "1 ••01 71, n.+ 1.91•frlR 5 1'/,41 ( 1761, 1.y:... Im. ,1 iq, .von • I'1 n, 11,1 1,,.'.43?) n.•1•u I ,w a •lot] Finn 1'A17I141. 31114O Pr' ''3 FPIiU fBn(1) ('1IPD 13416. 1181 1,5')7,175 lob 611 1'17)19• ?,026.62.6. 1,74: ,I 7,275 '1,175 . 7 215 1 7 , 11 5 _56 4!.10 - 19755 _825,O2G 725,1'(0 t2..49.0_8.,..9N). 57.,611,1179 4 7,5110 4 7,500 513 1,',Ti9,;n',• $?,n17,n1t1 179,271 $ 170,739 77,588 717,277 . 29i15h I R7, 316 $ 197;316 26,471 7,133(0 704,7711 74.901 4 1 1. Accounting politico The financial statements have been prepared by the Board i.n accordance with principles that are considered .appropriate for Ontario' School Boards on a basis consistent with that of the preceding year. Theee principles are in accordance with generally accepted accounting principles except de prescribed by the !3iniatry of Education and noted as follows: (a) Accrual accounting The accrual method for reporting revenue and expenditure has been used with the exception of reporting of charges for unmatured debenture debt and expense relating to sick Leave benefits. With regard to unmatured debenture debt, principal and interest charges are not accrued from the due date of payment to the end of the fiscal year. Noce 2 below sets out the accounting followed for sick leave benefits. (b) Fixed assets and unmatured debenture debt Fixed assets are charged co current expenditure unless financed by long-term debt. Principal and interest charges on unmatured debenture debt are included as expenditures in the period due. Fixed assets, described as capital outlay to be recovered In future years, are included on the balance sheet only to the extent of the balances of the related unmatured debenture debt outstanding and of any related temporary financing at the end of the fiscal year. 2. Retirement gratuity plan Under the sick leave benefit plan, unused sick leave can accumulate, and employees may become entitled to a cash payment when they leave the Board's employment. To become eligible for this benefit, ap employee must have twelve years of service with The Huron County Board of Education., The amount of such benefits accumulated to December 31, 1°984, to the extent that they can be claimed as cash payments by employees on retirement is $7,285,000. This amount does not include any estimate in respect of sick leave accumulated by employees of the Board who do not ,vet qualify to claim the gratuity. No provision has been made in respect of this contingent -liability in these financ.Lal statements. During 1984, the Board paid 5225,000 to employees who left the Board in 1983, ($310,000 paid in 1983). 3. Reserve for working. funds The reserve for working funds at December 31 is. applicable to the elementary and secondary school gperations of the Board as follows: 1984 1983 Elementary . ' $275,000 $275,000 Secondary 550,000 . 450,000 $825,000 $725,000 4. Unmacured debenture debt Of the unmatured debenture debt outstanding of $1,482,294, principal • and interest repayments for the next five years are as follows: Principal .Interest Total 1985 $ 513,120 $ 84,315 5 597,435 1986 ' 476,174 54,850 531,024 1987 313,000 27,488 340,488 1988 62,000 13,243 75,243 1989' 55,000 8,760 63,750 1,419,294 188,656 1,607,950 Remaining balance 63,000 9 75 72,750 $1.482,294 $198,406 S1,680.700 '.IA Ir 't1 It 7 Int INR7r3 1 •u"“1 8/468( nF FOm A117e1 Nt Vr.11"s 17,16 ':TAIF'1s0r ''8 e1V17H11F 6(13 / flu111111'1'u, .' AP 4194: 1,1 1. , ,'3 8 II, .1 184. , xp•.„d 1 r .,,, .. mrnl I.1m,•u e1'. ,11 Nomparrorvtron Ionrro.li�n Pl r„ ,rorlrl ,I ".I off, Ir.t,vpor curt"', 1.11(1 • I r . • . , "a)trarl 'rponllr •r ,I 016' n31,er n1.r rlttfop, '-"') rah l•.r•• (.`ht rharp,'•s n"•1 ,pt 11 1 ..1 , III , •)01316 •r . I ,Ila ' • ' , r,1. . ., , I.0 11 . '.,II' r amxv r,f exp. ,.,, n•+ !i• or 1-I,,.1 . ,• Net rrpon'ilr4re 1171,16 ed 4,y. Tronefer fon., 3r,, r 4'.',r ,, f.,•.'1 Tr tnnfer to „ ef,nd 1'n e, n ' r + •r' ' ",3a :nvornmont df 'Ip,n l„ p','.'''3 I',1'11'r+.. n) rax4rin•, eller l 1 ,• root or Previn,Iq 1, 1,'a .v.1' ,•• 1.•61 66.1.1131 , „ 'nfer (.,1136) •• 1.13111 THE HURON COUNT? 30ARD 'F L'r(A":rill CAPITAL FUND STATE'"•ENT )F ;PERATI')NS 'EAR LADED 'F:':F`lBE:9 :9,14 (with 208038'1tve amoun[8 .'r 1141.31 Sae a<:ompanytng 1ot0s/ • 11,7117i ,4)19 60t,40141 11, 7,1 9R4 1, 4 1s).> , ,'I.'x',7 1 i I, 76N, I,71 1 116,617 1:,66/ 330,91) I I: .,oat ,ry I'lN 1 .r• ••na •Iry •rh,,l • $ 141,71) $ 171,350r 166,66) 175'n' 1,541 7,9)11 13.'51,5)'7 12,041,045 1,115,941 1,571,161 1.419,894 I ,4nn,4 71 ',)1, 7',J 8114 421,11) 8,400 59,687 8I, 1'01 ,R)A 771,078 13,475 )',585 X,068, 1111 11,, 111•.,38)_ '161 '1,17'1,)1/ 14 'lir, 1 'u4o 18,.11.11 116, I3 'x41) 1,718,)39 15,6x,4, 167 1', , 7 1 1, 1'11 1,241,41"3 1,185 1 I llrl,3nx1) 1)1)11,3)44(13 I ' 66.5 '1,959 184 !1,`4',1,919 4•,in1 611 6,4)3,R/A 11,741,498 911,41R 7;",,i449 116,)"7 IN. '1 1,688 15, 71 1, ' 11 13,1111,01'1 $ 7I 78, 1,0 $ (744,"x.91 5 (.4."1.1.7'71.) STATEMENT 3 inur'e4 '5f re'. )vary 1f ..1.):r 11 •'•(pendlture9. :a7i[al expenditures :'I3 ,.` rev"n'I" :Ind ,e5anr.,re pr:nctaa, na'nenr u1.,', -,.).'d to (.'•,,+•IUP, f.,nd .xpe•lrl>1',r"s :apt cal ?eoenditt,ros. !..and and buf:d logy F,,rnic.re .Ind e'1'lt7me1t Net reO,Ver'7 )f pr tor 110 17 i' initis e'4per6t 1 t ,reg "nrerr)verad •'.Iplr Ii ,'x73^d:r ,r,'4, '148 t;n)n5 ,t /ear Unrecover-0d r_a,,1ra1 ex'ondtCures, aur, .1.f year 1'3114 1983 $ 970,'96 5 547,095 +22,216 1,,9 3,1)32 592,435 371,361 '170, 795 522,236 ',29,,232 1,1.'6,327 371,545 :'5,549 647,095 2,004,530 2 533,762 51,482,294 5.004,530 5. Debt charges and ,capital ,loan interest The revenue fund expenditure for debt charges interest includes principal and interest payments as follows: 1984 1983 Elementary Secondary Elementary Secondary and capital loan Principal payments on long-term debt including contributions co sinking funds $343,236 $179,000 $360,232 5169,000 Interest payments thereon 71,750 42,558 92,591,52,027 $414,986 $221,558 5452.823. 8221,027 b.Reserve fund Thereserve fund relates to , disposals of , certain surplus ,. proper e''p'+ - The Board was not obligated to reduce the current Province of Ontario n this amount on condition, t:,at such funds be placed in a reserve fund and usedor future capital expenditures.. Changes in the reserve .fund balance are as follows: Balance, January 1 Transfers from (co) the revenue fund Balance, Qecember 31 1 1984 Elementary Secondary 1983 Total Total 412,315 112,315 413,500 $36,890 36,890 (1,185) $12,715 $36.890 $49.205 $12,315 Trust funds Trust funds generally represent accumulated donations received by the Board from individual, corporate and institutional sources. These funds are oav•) •0 Aroyl le various scholarships, bursaries and awards to students in Huron 1'.,unto schools and to 4ssist with other educational projects nor funded by the 8. Over or under requisition The School's Administration Act provides that the difference between the amount requisitioned Ecom a municipality and the amount that should have been requisitioned based an the actual level of expenditure and grants is to be treated as an over requisition or under requisition. The attached financial statements reflect a net over requisition from municipalities in 1984 of 5322,540 which will be deducted from [he tax requisition by the School Board in 1985. 9. Collective,Agreement The 1984-1985 Collective Agreement with the Ontario Secondary Teachers' Federation District-No.45 has not yet been ratified. Under a "Terme of Employment" memorandum, the secondary school teachers were paid a salary increase of 45 over amounts under the 1983-1984 Collective Agreement for the period from September 1, 1984 to December 31, 1984. This additional expenditure hes been provided for in these financial statements. 10. Comparative amounts Certain of the 1983 comparative figures have been revised t0 reflect adjustments made to the 1483° grant from the Goverment of Ontario( such adjustments were not material in amount. 1