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The Wingham Advance-Times, 1985-05-15, Page 4u a Page 4 -The Wingham Advance -Times, May 15, 1985 To the Supporters of The Huron County Board of Education. FINAIICIAL STATEMENTS AUDITORS' REPORT We have examined the' balance sheet of The Huron County Board o£ Education as at December 31, 1984 and the revenue fund statement of revenue and O 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 considered necessary in the circumstances. In our opinion, these financial statements present we fairly the financial position of the Board as at December 31, 1984 and the results of its operations for the year then ended in accordance 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. tered Accountants. Lice 4o..--952. THE HURON COUNTY. BOARD OF EDUCATION BALANCE SHEET DECEMBER 31, 1984 ' (with comparative amounts at December 31, 1983) ,Cash and term deposits Accounts receivable: Government of Ontario Local taxation - Supplementary taxes ' Other school boards Sundry Prepaid expenses ASSETS REVENUE FUND CAPITAL FUND Accounts receivable Due from ,revenue fund Capital outlay to be recovered in future years (statement 3) RESERVE FUND Due from revenue fund - ' TRUST FUND Cash I� Investments -'at cost which appioximates market value On behalf of the Board Director Director 1984 1983 $1,070,922 $ 866,749 1,629,551 1,470,1,46 8,032. 200 105,571 102,194 18,345 23,351 2,832,421 2,4(,2,640 75,585 74,438 $2908,006 $2,537,078 $ 22-5 $ 225 7,275 7,275 1,482,294 2,004,530 $t,489 794 $2. 012'030 $ 49,205 $ 12015 177,968 169,968 $ 187;916 $179,229 (See accompanying notes) DECEMBER 31 1984 THE HURON COUNTY BOARD OF EDUCATION CAPITAL FUND STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1984 (with comparative amounts for 1983) Sources of recovery of capital e4penditures: Capital expenditures out of revenue fund Debenture principal payments included in revenue fund expenditures Capital expenditures: Land ,and buildings Furniture and equipment Net recovery of prior years' capital expenditures Unrecoveret3 capital expenditures, beginning " of year Unrecovered capital expenditures, end of year 1984 STATEMENT' 3 1983 $ 970,796 $ 647;095 522,236 529,232 1,493,032 1,176,327 592,435 371,546 378,361 275,549 970,796 647,095 522,236 529,232 2,004,530 2,533,762 $1,482.294 $2,004,530 (See accompanying notes) LIABILITIES AND EQUITY REVENUE FUND Accounts payable: Local taxation - over requisition (statement 2) Trade accounts payable and,. accrued charges ti Other school boards Due to capital fund .Due.t.o:reserve fund. Reserve for working funds (note 3) Holdbacks payable Unmatured debenture debt (note 4) Equity in reserve funds (note 6) _Trust funds (note .7): Balance, beginning of year Add - Investment.income Principal receipts Deduct awards Balance, end of year CAPITAL FUND • REFERVE FUND TRUST FUND 1984 STATEMENT 1 1983 •$ 322,540 $ 425,221 1,597,375 m, 106611 2,026,526 1,169,548 197,719 1,792,488 ' ' 7,275 7,275 -49-, 205.:.._.. _. . 12,315'- 56 480 2,3.15...,..56,480 19,590 825,000 725,000 $2A108 006 $2,537 078. $ 7,500 $ 7,500 1,482,294 , 2,004,530 1,489,794 $2(11.2030 $ 49205 $.-L1261L5 $ 179;229 $ 170,799. 22,588 26,421 15,455 7,000 217,272 204,220' 29,356 24,991 187,916 179,229,„ .184916 $ 11794229 THE HURON COUNTY BOARD OF REVENUE FUND,STATEMENT OF REVENUE YEAR ENDED DECEMBER 31 (with comparative 'amounts Expenditure: Business administration General administratiod Computer services Instruction Plant operation and maintenance Transportation Tuition fees Capital expenditure (non -allocable) Other operating expenditure Debt charges and capital loan interest (note 5) Non-operating expenditures, excluding transfers Total expenditure Recovery of expenditures-: Other achnol hoards Government of Canada Individuals Other revenue, excluding transfers from reserves Total recovery of expenditures Net e:Tpendtture .. to Financed by: Transfer from ('to) reserve fund Transfer to revenue fund reserve for working funds Government of Ontario - general legislative grant Local taxation - raised in current year Previoue year's over (under) requisition Under (over) requisition of taxes for year (note 8) EDUCATION AND EXPENDITURES , 1984 for 1983) reserves (See accompanying notes) 1984 ementary Schools $ 190,222 204,106 11,039 14,410,955 1,424,927 1,721,938 22,185 309,680 11,741 414,986 87,116 18,808,895 1,493 22,402 23,895 18,785,000 12,432,316 6,459,590 178,352 19,070,258 $ (285,258) Secondary Schools 197,195 211,588 11,444 12,585,523 1,712,657 1,708,393 905,553 336,697 12;067 221,558 118,970 Total $ 387,417 415,694 22,483 26,996,478 3,137,584 7,430,331 927,738 646,377 23,808 636,.50 206,086 18,021,645 36,830,540 1,123,804 40,392 74,212 44,927 1,123,804 40,392 75,705: 67,329 5,705- 67,329 1,283,335 1,307,230 16,738,310 35,523,310 (36,890) (36,890) (100,000) (100,000) 10,782,956 23,215,272 5,882,657 12,342,247 246,869 425,221 16,775,592 35,845,850 $ (37,282) $_ (322,540)1 STATEMENT 2 1983 Elementary Schools $ '161,737 165,662 7,441 13,741,519 1,375,961 1,619,896 22,225 421,733 59,687 452,824 39,425 18,068,110 Secondary Schools $ 171,055 175,206 7,870 12,041,064 1,571,163 1,600,471 752,889 8,400 83,350 • 221,028 72,585 16,705,081 Total $ 332,792 340,868 15,311 25,782,583 2,947,124 3,220,367 775,114 430,133 143,037 673,852 112010 34,773,191 973 1,125,737' • 1,126,710 36,916 36,916 1,980 65,185 67,165 25,821 10,881' 36,702 28,774 1,238,719 1,267,493 18,039,336 15,466,362 33,505,698 1,185 12,002,465 6,123,620 90,418 18,217,688 $ (178,352) (100,000) 9,949,484 5,637,878 225,869 15,713,231 $ (246,869) 1,185 (100,000) 21,951,949 11,761,498 316,287 33,930,919 $ (425,221) 1. Accounting policies The' financial statements have been prepared by . the Board in actor -dare -e with prigciples that are considered appropriate for Ontario Schoor Boards od a basis consistent with that of the preceding year. These principles are in accordance with generally accepted accounting principles• except as prescribed by the Ministry of Education and noted as follows: (a) Accrual acpountine / The accrual method ,fcit reporting revenue and expenditure has been used with the exception of reporpi,ng 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 THE RURdi11CC0UNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 1984 end of the fiscal year. Note 2 below sets out the accounting followed for sick leave 4,enefits. (b) Fixed assets, and unsutured debenture debt Fixed assets are changed to current expenditure unless financed by long-term debt. Principal and interest charges on unmatured debenture debt are included as expenditures in the period due. '1 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, an employee must have twelve years of service with The Huron County Board of Education. The amount of such benefits accumulated to December 31, 1984, to the extent that they can be claimed as cash payments by employees on retirement is 17,285,000. This amount does not include any estimate in respect of sick leave accumulated by employees of the Board gratuity. ,No provision has been made in these financial statements. During 1984, left the Board in 1983, ($310,000 paid in 3. -Reserve for working funds who do not yet qualify to claim the respect of this contingent liability in the Board paid $225,000 to employees who 1983). The reserve for working funds at December 31 is applicable to the elementary and secondary school operations of the Board -as follows: 1984 1983 - Elementary $275,000 $275,000 Secondary 550,000 450,000 4. ,Unmatured debenture debt $825.000 $725.000 Of the unmetyred debentpre debt outstanding off. $1,482,294, principal and interest repayments for the next five years are as follows: Principal Interest Total - . 1985 $ 513,120. $ 84,315 $ 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 63,760 1,419,294 188,656, 1;607,950 Remaining balance 63,000 9,750 72,750 $1,482,294 • -$198,406 $1,680,700 5. Debt charges and capital loan interest The revenue fund expenditure for debt charges and capital loan interest includes principal and interest payments as follows: 1984. • 1983 Elementary Secondary Elementary Secondary Principal payments on long-term debt including contributions to sinking funds $343,236 $179,000 $360,232 $169,000 • Interest payments thereon $414,986 $221,558 $452.823 $221.027 Reserve 71,750 42,558 92 591 52,027 6.fund The reserve fund relates to disposals of certain surplus properties. The, Board was not obligated to reduce the current Province of Ontario grants in' this amount on condition that such funds be placed' in a reserve fund and used for future capital expenditures. Changes in the reserve fund balance are as follows: 1984 1983 Elementary Secondary Total Total Balance, January 1 $12,315 $12,315 $13,500 Transfers from (to) the revenue fund $36,890 36,890 (1,185) Balance, December 31 $12,315 $36,890 $49.205 $12,315 7. Trust funds Trust funds generally represent accumulated donations received by the Board from individual, corporate and inatituti.onal sources. These funds are used to provide various scholarships, bursaries and awards to students in Huron County schools and to assist with other educational projects not funded by the Board 8. Over or under requisition The School's Administration Act provides that the difference between the amount requisitioned from a municipality and the amount that should have been requisitioned baaed on the actual level of expenditure and.grants is to be treated as an over requi"sition or under requisition. The attached financial statements reflect a net over requisition from municipalities in 1984 of $322,540 which will be deducted from the 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 "Terms of Employment" memorandum, the secondary school teachers were paid a salary increase of 42 over amounts under the 1983-1984 Collective Agreement for the period from September 1, 1984 to December 31, 1984. This additional expenditure ,has been provided for in these financial statements. 10. Comparative amounts Certain of the 1983 comparative figures have been revised to reflect adjustments made to the 1383 ,grant from the Government of Ontario; Such adjustments were not material in amount.