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The Wingham Advance-Times, 1985-06-12, Page 4Page 4 -The Wingham Advance -Times, June 12, 1985 Helfensteins host party for exchange students Bellefarm, the home of Harry and Carol Helfenstein on the second concession' of Culross, was the scene of the final overnight party for the nine exchange students who have been living in the area as part of the American - Scandinavian Student Ex- change program for the past year. This was to be the last time the nine students would be ASSETS Unrestricted Cash Investments (note) Taxes receivable User charges receivable Accounts receivable Other' current assets Long term receivables together as Greta Olafsdottir of Iceland will be heading home in less than three weeks. She has been staying with Harry and Ruth Thomas of Holstein. Next the Scandinavians: Helena Eriksson who lives with the Torkarskys of Mount Forest; Eva Carlsson who lives with Alex and Sharon Wilson of Mount Forest; Kjerstin Nyberg who lives with the Dicksons of Mildmay; Torm'od Haug who lives with the Tweddle family of Wingham; Siru Tunkelo who lives with the Siertsema family of Bayfield; Hille Janhonen who lives with the Hummel family of Goderich and Tina Asp who lives with the Robinsons of . Goderich, will leave July 4 and finally John Mazur off Germany will leave July 7. These students say they cannot believe their year in Canada. is already over, the school year is all but com- pleted and the friends they've made are to be left behind in four short weeks. They talked about their parents, their high schools and in each case they were talking about the Canadian "parents" and their Canadian schools. They cannot yet relate to their other home and confess their first problem will be to speak Finnish, German, Nor- wegian and Swedish again. English comes all too easily them these days. Lynn Easson of Mount Forest, who is booked to go to Germany, and Leigh McCallum of Kenilworth, who is awaiting word from her host family, said they felt the deep emotions their European friends must feel for their adopted country of Canada. Their enthusiasm for the exchange adventure has rubbed off on these girls and they said they cannot wait to "get going" on their big year. Of course the party would not have been complete without the inclusion of host brothers and sisters and a few friends from Wingham who brought the total party group to over 20. Many, many hamburgers, hot dogs, potato chips and cookies were devoured amidst games of . football, basket- ball, baseball and pingpong. They took time out to write a special fetter to the students who will be coming TOWN QF WINGHAM 1984 FINANCIAL REPORT Auditor's, Report on Financial Report AUDITOR'S REPORT To the Members of Council, Inhabitants and Ratepayers of The Corporation of the Town of Wingham: I have examined the consolidated balance sheet of the Corporation of the Town of Wingham as at December 31, 1984, and the consolidated statement of operations for the year then ended. My examination was made in accordance with generally accepted auditing standards, and accordingly included such tests and other procedures as I con- sidered necessary in the circumstances. Consolidated Balance Sheet as at December 31, 1984 Restricted Cash Investments (note) Accounts receivable Other current assets Long term receivables Investment in own debentures 0` Capital outlay financed by long term liabilities and to be recovered in future years (note 6) LIABILITIES Temporary loans Accounts payable & accrued liabilities Other current liabilities Net long term liabilities (note 6) FUND BALANCES AT THE END OF THE YEAR (note 7) To be used to offset (or to be recovered from) taxation or user charges (note 7) Unexpended capital financing (or capital operations not yet permanently financed) (note) Reserves (note 8) Reserve funds (note 8) 1984 $ 12,319 166,331 21,704 223,360 891 In my opinion, these consolidated financial statements present fairly the financial posi- tion of the Corporation of the Town of Wingham as at December 31, 1984, and the results, of its operations for the year then ended in accordance with accounting principles prescribed for Ontario municipalities applied on a basis consistent with that of the preceding year. Wingham, Ontario April 30, 1,985 License Numer 941 NOTES TO THE FINANCIAL STATEMENTS 1983 1. Accounting Policies $ (a) Basis of Consolidation (i) Consolidated Balance Sheet This statement reflects the assets and liabilities of the revenue fund, reserve funds, the capital fund and includes the activities of all committees of Council and the following local boards which are under the control of Council: Wingham Police Commission Wingham Recreation & Community Centres Board Riverside Park Development Board Wingham Public Cemetery Wingham Day Care Board On the Consolidated Balance Sheet interfund assets and liabilities are eliminated with the exception of formalized notes or loans between the reserve funds and other funds of the 41,523 municipality. (ii) Consolidated Statement of Operations This statement reflects the consolidated sources of financing and expenditures of The 25,571 revenue fund, reserves, reserve funds, and the capital fund of the municipality and those 60,435 local boards described in note 1(a)(i). Similarly on the Consolidated Statement of Operations interfund sources of financing and applications are eliminated with the exception of interest income and expense arising from formalized notes or loans between the reserve funds and other funds of the Municipality. (iii) Non -Consolidated Entities For those local boards, municipal enterprises, and utilities of the muncipality which are not consolidated, the "'Consolidated Balance Sheet" does not reflect their assets or liabilities except to the extent of amounts due to or from those entities. The "Con- , solidated Statement of Operations" does not reflect their revenues and expenditures 106;255 ex- cept to the extent of the municipality's contribution to those entities. Those entities which are not consolidated are as follows: Wingham Area Fire Board 115,938 Wingham Public Utilities Commission - Water 338,001 - Electric (iv) The taxation, other revenues, expenditures, assets and liabilities with respect to the operations of .the school boards, and the County of Huron are not reflected in these financial statements except to the extent that overlevies are reported on the "Con - 80,692 solidated Balance Sheet" as "other current liabilities". (v) Trust funds and their related operations administered by the municipality are not con- solidated, but are reported separately on the "Trust Funds Statement of Continuity and 273,587 Balance Sheet". 117,437 (b) Basis of Accounting (i) Sources of financing and expenditures are reported on the 'accrual basis of accounting with the exception of principal and interest charges on long term liabilities which are charged against operations in the periods in which they are paid. The principal and in- terest charges are not accrued for Me ,periods from the dates of the latest instalment payments to the end of the `financial year, (ii) 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. (iii) Capital Outlay Financed by Long Term Liabilities and to be Recovered in Future Years The historical cost and accumulated depreciation of fixed assets are not reported for municipal purposes. Instead the"Capital outlay financed by long term liabilities and to be recovered in future years," which represents the outstanding principal portion of un - matured long term liabilities for municipal expenditures or capital funds transferred .to other organizations, is reported on the "Consolidated Balance Sheet". 2. Operations of School Boards and the County of Huron Further to note 1(a)(iv), the taxation, ''other revenues, expenditures and overlevies (underlevies) of the school boards and the County of Huron are comprised of the following: School Boards County i, axation & user charges $ 626,096 $ 133,093 Grants - 15,943 4,789 103,864 203,808 152,453 424.605. 460,125 40,423 29,204 66,297 135,924 127,529 276,882 338,001 837,411 925,655 153,685 10,580 164,265 276,882 10,902 270,947 114,415 9,683 837,411 925,655 Consolidated Statement of Operations for the year ended December 31, 1984 Budget 1984 $ SOURCES OF FINANCING Taxation & user charges (note) Residential & farm taxation 861,300 Commercial, industrial & business taxation 567,100 Taxation from other governments 36,500 User charges. b 211;,700 Deduct: amounts received or receivable':for region or county, and school boards Grants Government of Canada Province of Ontario Other municipalities Other Contributions from developers Investment income Sale of land Other Penalties & interest Miscellaneous Proceeds from the Issue of long term liabilities Jl I, Extraordinary gain (note) Net appropriations from reserves & reserve funds 5,300 MUNICIPAL FUND BALANCES AT THE BEGINNING OF THE YEAR (note 7) To be used to offset (or to be -recovered from) taxation or user charges 56,600 Unexpended capital financing (or capital operations not yet financed) Total financing available during the year 1,740,800 (734,700), 9,000 644,000 , 34,900, Actual 1984 $ Actual 1983 866,110 ' 832,413 599,538 575,794 46,085 44,659 248,218 249,053 (779,921) (769,627) 8,487 7,399 693,058 618,675 ,.35,166 28,834 11,600 34,153 22,060 33,000 28,626 39,434 4,500 7,847 3,925 Budget 1984 'APPLIED TO: Current operations General government 183,400 Protection to persons •& property 303,100 Transporation services 26'2,550 'Environmental services 117,250 Health services 43,900 Social & family services 212,000 Recreation & cultural services 173,800 Planning & development 5,000 Other Capital General government Protection to persons & property Transportation services Environmental services Health services Social & family services Recreation & cultural services Planning & development Other Extraorilnary loss (note) Net appropriations to reserves $ reserve funds MUNICIPAL FUND BALANCES AT THE END OF THE YEAR (note 7) To be used to offset (or to be recovered from) taxation or user charges Unexpended capital financing (or capital operations not yet financed) 1,301,000 44,500 92.800 268,000 10,000 3,500 21,000 439,800 Total applications during the year 1,740,800 5,662 80,692 64,358 1 ,873,721 Actual 1984 $ 161,185 300,962 288,357 124,891 38,509 208,280 187,950 11,056 1'.321,190 46,609 183,921 270,591 11,222 1,716,977 Actual 1983 $ 185, 7484 310,323 229,858 117,214 40,187 1:1,037 70, 684 10,187 1.2 ---),748 18,757 10,016 227,842 5,646 2.625 1,523 26,661 12 742 541,629 276,526 104.521 10.902 80,692 1 873.721 1.716,977 Requisitions ' Supplementary taxes Overlevies for the year Overlevies at the beginning of the year Overlevies at the end of the year $ 642,039" $ 137,882 (636,860) (136,601) (6',145) (1,097) 34 $ ' 184 6,558 1,851 $ 6,592 $ 2,035 These revenues and expenditures are not reflected in the "Consolidated Statement of Operations", The overlevies at the end of the year are reported as other current liabilities on the "Con- solidated Balance Sheet". 3. Contributions to Unconsolidated Joint Boards Further to note 1 (a)(iii), the assets and liabilities of unconsolidated joint boards have not been consolidated and are not rep¢rted on the "Consolidated Balance Sheet",.except to the extent of the long term IiabiliYies to -be recovered from general taxation; and of amounts due to or from those boards, The erations of these joint boards have also not been consolidated. The "Consolidated Statem of Operations" includes only the following contributions made by the Municipality ese boards: 1984 Wingham Area Fire Board (formed January, 1984) - Share of operating costs (24%) - Share of capital expenditures (36.2%) $ 7,823 117,920 $ 125,743 iThe municipality has reported on the "Consolidated Statement of Operations" its full ,responsibility forth -0 1984 operations including its Share of the deficit, therefore, there is' no contingent liability. 4. Trust Funds Trust funds administered by the municipality amounting to $84,346 (1983 $82,066),, have not been included in the "Consolidated Balance Sheet" nor have their operations been included in the "Consdlir1''Statement•of Operations". 5. Liability of '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. This policy after December 31, 1984, applies only to employees of the Wingham Police Com- mission. The liability for these accumulated days for the Wingham Police Commission employees, to the extent that they have vested and could be taken in cash by an employee on ter- minating, amounted to $48,215 (1983 $28,333) at the end of the year No provision has been made for this liability, All other employees have chosen a cash payout over five years commencing in 1985. Based on their 1985 salary scale this five year payout would amount to $62,075. No provision has been made for this liability, as it will^be expensed each year as it is paid out. 6. Net Long 'Term Liabilities (a) The balance of net long term liabilities reported on the "Consolidated Balance Sheet" is made up of the following. Total long term liabilities incurred by the muncipality including those incurred on behalf of school boards. and municipal enterprises and oustanding at the end Of the year amount to $ 665,856 $ 806,602 Of the long term liabilities shown above, the respon- sibility for payment of principal and interest charges has been assumed by municipal enterprises and school boards. At the end of the year, the oustan- .. ding principal amount of this liability is The balance in the Ministry of the -Environment Debt Retirement Fund which has been accumulated to the end of the year to retire the oustanding long term 'liabilities included above, amount to (124,974) (111,601) $ 276,882 $ 338,001 1984 1983 (264,000) (357,000) Net long term liabilities at the end of the year Barry W. Reid Chartered Accountant (b) Of the net long term liabilities reported in (a) of payments are payable from 1985 to 1989, $31,200 thereafter and are summarized as follows: 1985 to 1989 from general municipal revenues $ - 206,889 interest to be 'earned on Ministry of the Environment debt retire- ment funds 31,549 into the area next year and plans were finalized for some of the students to join the Helfensteins on a two- day trip to Toronto. The finale of the exchange year will be a family party in Bayfield June 30. Cheryl Stafford of Wroxeter, an exchange student in Swit- zerland, will be home and will attend the party with her parents. - this note, .$238,438 in principal, from 1990 to 1994, and $7,244 1990 to - 1995 and 1994 thereafter $ 31,200 $ 7,244 $ 238,438 $ 31,200 $ , 7,244 (c) Approval of the Ontario Municipal Board has been obtained for the long term liabilities reported on the "Consolidated Balance Sheet". ' 7. Municipal Fund Balances at the end of the year (a) The balance on the "Consolidated Statement of Operations" of municipal equity of $10,902 (1983 $80,692) .at the end of the year is comprised of the following: 1984 To be used for general reduction of taxation $ 10,902 1983 $ 80,692 8. Reserves and Reserve Funds The total balance on the "Consolidated Balance Sheet" of reserves and reserve funds of $385,362 (1983 $391,024) is made up of the "following: 1984 1983 Set aside for specific purpose by Council for capital expenditures for working .capital Set aside for specific purposes by legislation, regulation or agreement for loans under the Ontario Home Renewal Plan for renewals, etc., under the Ministry of the Environment Total, $ 172,800 $ 175,440 $ 98,147 $ 98,147 $ 270,947 $ 273,587 $ '90,731 $ 23,684 $ 114,415 $ 385,362 $ 96,027 $ 21,410 $ 117,437 $ 391,024 9. Charges for Net Long Term Liabilities Total chages for the year for net long term liabilities which are reported on the ''Con- solidated Statement of Operations" are as follows: - 1984 1983 Principal payments including contributions to sinking funds and to the Ministry of .the Environment Debt Retirement Fund Interest $ 49,510 $ 32,041 $ 81,551 $ 46,351 $ 35,910 $ ' 82,261 The charges for long term liabilities assumed by the non -consolidated entities are not reflected in these statements. 10. Contingent Liabilities The municipality is contingently liable fordong term liabilities with respect for those for which the responsbility for the payment of principal and interest has been assumed by school boards and municipal enterprises. The total amount oustanding as at December 31, 1984, is $264,000 (1983 $357,000) and is not recorded on the "Consolidated Balance Sheet". 11. Other Notes (a) Nonaccrual of Interest on Long Term Liabilities No provision has been made in these financial `statements for the accrual of interest on the net long term liabilities. Had this provision been made, the municipal fund balances as at December 31, 1984, would have been decreased by $4,849. (b) Included in the "Consolidated Statement of Operations" are charges from the Ministry of the Environment for MOE' operated sewer systefns in the amount of $15,105 (1983. $13,089). Reserves Balance at the beginning of the year Appropria- tions from (to) current operations Appropria- tions ,to reserve funds Appropria- tions to capital opera- tions Balance at the end of , the year Reserve Funds Balance at the beginning of the year Revenue Contributions from developers Interest earned Contributions from current operations Contributions from reserves Expenditures Contributions to current operations Contributions to capital operations Balance at the end of the year Analysis of Reserves and Reserve Funds For the Year Ended December 31, 1984 Town of Wingham ; Schedule2 Total $ 273,587 39,160 (41, 800) 270,947 Total $ 1 17,437 6,918 206 7,124 10,146 . Working Capital Capital Expenditures $ 98,147 175,440 39,160 (41,800) 98,147 172,800 Ministry of the Environment $ Ontario Home Renewal Program 21,410 96,027 2,068 4,850 206 2,274 4,850 10,146, M 114,415 23.684 10,146 10,146 90,731 0