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The Wingham Advance-Times, 1983-05-04, Page 11The Wingham Advance -Times, Mu 4, 1983 -Page 11 SPRING ASSEMBLY -The students in Mrs. Huether's Grade 2 class at the Brussels Public School performed at an assembly held last Thursday afternoon. The assembly, held in conjunction with Education Week, was highlighted by a blacklight dance demonstration by a group of girls from Grade 7 and 8 called "The Stray Cats". THE GRADE ONE CLASS at the Brussels Public School presented a play at the school's spring assembly held last Thursday afternoon. Lit- tle Stephanie Henry directed her fellow classmates in a recitation. Schools all over the area held special programs and events last week to celebrate Education Week. THE HURON COUNTY BOARD OF EDUCATION Wzadonoan 'Chartered Accountants City Centre 380 Wellington Street London Canada N8A 5B5 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, 198.2 -and -the -revenue fund -state- ment of revenue and expenditures and the capital fund statement of operations for the year then ended. Our examination was made in ac- cordance with generally accepted auditing standards, and according- ly 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, 1982 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. Chartered Accountants. March 9, 1983. License No. 457. STATEMENT 3 THE HURON COUNTY BOARD OF EDUCATION CAPITAL FUND STATEMENT OF OPERATIONS. YEAR ENDED DECEMBER 31, 1982 (with comparative amounts for 1981) Sources of recovery of capital 1942, 1981 expenditures: Capital expenditures ,out of revenue fund $ 815,112 $ 488,623 Debenture principal payments in- cluded in revenue fund expen- ditures 533,281 504,379 Capital expenditures: Land and buildings Furniture and equipment Net recovery of prior years' capital expenditures Unrecovered capital expen- ditures, beginning of year Unrecovered capital expen- ditures, end of year 1,348,393 993,002 510,466 297,415 304,646 191,208 815,112 488,623 533,281 3,067,043 504,379 3,571 ,422 $2,533,762 $3,067,043 (See accompanying notes) THE HURONCOUNTY BOARD OF EDUCATION BALANCE SHEET DECEMBER 31, 1982 (with comparative amounts at December•31, 1981) ASSETS 1982 REVENUE FUND Cash Accounts receivable: Government of Ontario Local taxation - Under requisition (statement 2) Outstanding 1982 Requisitions Supplementary taxes Other school boards Sundry Prepaid expenses $1,790,125 37,000 1,464 396,983 37,397 2,262,969 79,360 1981 $ 2,614 $1,252,142 120,324 9,028 384,722 24,062 LIABILITIES AND EQUITY REVENUE FUND Bank loan and overdraft Accounts payable: Local taxation - over requisition (statement 2) Trade accounts payable and accrued charges Other school boards Due to capital fund Due to reserve fund. 1,792,892 74,525 Reserve for working funds (note 3) $2,342,329 $1,867,417 CAPITAL FUND Accounts receivable Due from revenue fund Capital outlay to be recovered in future years (statement 3) Due from revenue fund. $ 225 7,275 2,533, 762 $•• 225 7,275 3,067,043 $2,541,262 $3,074,543 RESERVE FUND $ 13,500 $ 12,000 TRUST FUND Cash Investments - at cost which approx- imates market va(,ue On behalf of the Board Director Director $ 7,828 $ 8,446 162,971 162,068 Holdbacks payable Unmatured debenture debt (note 4) STATEMENT 1 1982 1981 $ 129,889 310,653 1,073,076 182,036 $1,222,424 100,718 1,696,554 1,323,142 7,275 7,275 13,500 12,000 0,775 19,275 625,000 525,000 $2,342,329 $1,867,417 CAPITAL FUND $ 7,500 $ , 7,500 2,533,762 3,067,043 $2,541,262 $3,074,543 RESERVE FUND Equity in reserve funds (note 6) $ 13,500 12,000 TRUST FUND Trust funds (note 7): Balance, beginning of year Add - Investment income Principal receipts Deduct awards $ 170,799 ' $ 170,514 Balance, end of year (See accompanying notes) $ 170,514 23,477 1,000 $ 167,925 20,447 2,400 194,991 ' 190;772 24,192 20;258 170,799 170,514 $ 170,799 $ 170,514 THE HURON COUNTY BOARD OF EDUCATION REVENUE FUND STATEMENT OF REVENUE AND EXPENDITURES YEAR MED DECEMBER 31, 1982 (with comparative amounts for 1981) Expenditure: Business administration General administration 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 to reserves Total expenditure Recovery of expenditures: Other school boards Government of Canada Individuals Other revenue, excluding transfers from reserves Total recovery of expenditures Net expenditure Financed by: Transfer to reserve fund Transfer to revenue fund reserve for working funds Government of Ontario - general legislative grant Local taxation - raised in current year Previous year's over (under) requisition Under (over) requisition of taxes for year (note 8) 1982 Elementary Schools $ 144,507 132,092 5,257 12,461,920 1,202,861 1,592,266 25,289 149,139 69,812 487,416 33,868 Secondary Schools Total $ 154,061 $ 298,568 140,825 272,917 5,605 10,862 11,018,021 23,479,941 1,429,032 2,631 ,893 1,449,102 3,041 ,368 793,143 818,432 418,698 567,837 96,051 165,863 220,982 708,398 STATEMENT 2 1981 Elementary Schools $ 158,317 113,074 3,225 10,939,493 1,117,313 1,272,810 30,515 91,081 147,832 487,894 64,970 98,838 27,234 Secondary Schools $ 172,199 122,988 3,507 9,949,206 1,278,752 1,214,302 609,739 206,334 172,407 220,443 Total $ 330,516 236,062 8,732 20,888,699 2,396,065 2,487,112 640,254 297,415 320,239 708,337 34,896 62,130 16,304,427 15,790,490 32,094,917 14,388,788 13,984,773 1,626 16,952 990,095 33,848 81,622 3,857 18,578 1,109,422 28,373,561 990,095 33,848 83,248 20,809 1,128, 000 16,285,849 (1 .500) 11,039,891 5,352,147 (13,779) 16,376, 759 14,681 ,068 30,966,917 1,018 1,325 6,942 9,285 14,379,503 901,047 10,936 89,145 902,065 10,936 90,470 4,333 11,275 1,005,461 1,014, 746 2,979,312 (100,000) 9,847.913 5,259,443 (106, 545). 14,900,811 (1,500) (100,000) 20,887,804 10,611,590 (120,324) 31,277,570 (200.000) (175,000) 9,520,686 8,550,327 5,052,779 4,471,828 ,_ (7,7411 25,612 14,365,724 12,872,767 27,358,815 (375,000) 18,071,013 9,524,607 17,871 27,238,491 $ (90,910) $ (219,743) $ (310,653) $ 13,779 $ 106,545 (See accompanying notes) $ 120,324 DECEMBER 31, 1982 FINANCIAL STATEMENTS NOTES TO THE FINANCIAL - STATEMENTS December. 31, 1982 1. ACCOUNTING POLICIES The financial statements have been prepared by the Board in accordance with principles that are considered appropriate for Ontario School Boards on a basis consistent with that of the preceding year. These prin- ciples are in accordance with generally ac- cepted accounting principles except as prescribed by the Ministry of Education and noted as follows: (A) ACCRUAL ACCOUNTING The accrual method for reporting revenue and expenditure has been u ed with the ex- ception 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. Note 2 below sets out the accounting followed for sick leave benefits. , (B) FIXED ASSETS AND UNMATURED DEBENTURE DEBT Fixed assets are charged to current expen- diture unless financed by long-term debt. Principal and interest charges on unmatured debenture debt are included in expenditure 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 tem- porary financing at the endtof 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, 1982, to the extent that they can be claimed as cash payments by employees on retirement is $5,656,000. This amount does not include any estimate in respect of sick leave accumulated by employees of the Board who do not yet qualify to claim the gratuity. No provision has been made in respect of this contingent liability in these financial statements. During 1982, the Board paid $112,000 to employees who left the Board in 1981, (1981 - $135,000). 3. Reserve for working funds The reserve for working funds at December 31 is applicable to the elementary and secondary school operations of the Board as follows: Elementary Secondary 4. Unmatured debenture debt 1982 $275,000 350,000 $625,000 1981 $275,000 250,000 $525,000 Of the unmatured debenture debt outstanding of $2,533,76., terest repayments for the next five years are as •follows: 1983 1984 1985 1986 1987 Remaining balance 'Principal $ 529,232 522,236 513,120 476,174 313.000 2,353,762 180,000 $2,533,762 5. Debt charges and capital loan interest Interest $144,619 1 14, 307 84,315 54,850 , 27,488 425,579 31,752 $457,331 • principal and in - Total $ 673,851 636,543 597,435 531,024 340,488 2,779,341 211,752 $2,991,093 The revenue fund expenditure for debt charges and capital loan interest includes principal and interestppaymentsas follows: . 1982 1981 Principal payments on long-term debt in- cluding contributions to sinking funds $373,281 $160,000 5353,379 $151,000 Interest payments thereon 114,135 60,983 134,515 69,443 087,894 $220,443 Elementary Secondary Elementary Secondary 6. Reserve fund $487,416 $220,983 The reserve fund relates to disposals of certain surplus properties. The Board was not obligated to reduce the current Prov;nce of Ontario grants in this amount on , condition that such funds be placed in a reserve fund an' -i used for future capital ex- penditures. 7. Trust funds Trust funds generally represent accumulated donations received by "the Board from individual, corporate and institutional sources. These funds are used to pro- vide 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 requisition- ed based on the actual level of expenditure and grants is to be treated as an over re- quisition or under requisition. The attached financial statements reflect a net over requisition from municipalities in 1982 of $310,653 which will be deducted from the tax requisition by the School Board in 1983. 9. Comparative amounts The 1981 comparative amounts in the revenue fund statement of revenue and expenditures have been reclassified to conform with current year's financial state- ment presentation. Also certain of the 1981 comparative figures have been revised to reflect adjustments made to the 1981 grant from the Government of Ontario; such adjustments were not material in amount. Chartered Accountants City Centre 380 Wellington Street London, Canada N6A 585 THE HURON BOARD OF EDUCATION December 1982 FINANCIAL STATEMENT •