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HomeMy WebLinkAboutFinancial Statements 1994 T ,Ltkuoci-c- 19) 5 Financial Statements of THE CORPORATION OF THE VILLAGE OF PORT BURWELL December 31, 1994 7%717 Redfern, More L Co. \C1 CHARTERED ACCOUNTANTS PARTNFRS J.A.Di GIOVANNI,B.Comm.,C.A. R.E.BARTH,B.Sc..C.A. B.D.GREEN,B.A.,C.A. MANAGER B.M.BUDARICK,B.Comm.,C.A. R.ALLEN,B.A.,C.G.A. AUDITORS' REPORT To the Members of Council, Inhabitants and Ratepayers of THE CORPORATION OF THE VILLAGE OF PORT BURWELL We have audited the consolidated balance sheet of The Corporation of the Village of Port Burwell as at December 31, 1994 and the consolidated statement of operations for the year then ended. These consolidated financial statements are the responsibility of the corporation'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 as at December 31, 1994 and the results of its operations and the changes in its financial position for the year then ended in accordance with generally accepted accounting principles, as modified in agreement with the Ministry of Municipal Affairs. , C141 CHARTERED ACCOUNTANTS Tillsonburg, Ontario March 16, 1995 License Number 15898 22 HARVEY STREET, P.O.BOX 247,TILLSONBURG,ONTARIO N4G 4H5 Tel:(519)842-3604 Fax:(519)842-2178 THE CORPORATION OF THE VILLAGE OF PORT BURWELL Consolidated Balance Sheet December 31, 1994 1994 1993 $ $ ASSETS Unrestricted Cash - 29,897 Taxes receivable 33,670 45,697 User charges receivable 45,008 61,935 Accounts receivable 99,168 75,258 Prepaid expenses 4,501 - 182,347 212,787 Restricted Cash 40,038 9,022 Capital outlay financed by long-term liabilities and to be recovered in future years (note 1) 162,788 - 385,173 221,809 LIABILITIES Current liabilities Bank indebtedness 2,902 - Temporary loan - 115,000 Accounts payable and accrued liabilities 205,473 121,767 Nevada funds payable (note 2) 45,799 - 254,174 236,767 Net long-term liabilities (note 6) 162,788 - FUND BALANCES AT THE END OF THE YEAR To be recovered from taxation or user charges (note 7) (52,017) (77,833) Capital operations not yet permanently financed (note 7) (89,117) (37,000) Reserves (note 8) 69,307 69,307 Reserve funds (note 8) 40,038 30,568 385,173 221,809 See accompanying notes to the financial statements THE CORPORATION OF THE VILLAGE OF PORT BURWELL Consolidated Statement of Operations For the Year Ended December 31, 1994 Unaudited Audited Audited Budget Actual Actual 1994 1994 1993 $ $ $ SOURCES OF FINANCING: Taxation and user charges Residential and farm taxation 432,218 419,675 415,898 Commercial and industrial taxation 58,930 58,811 62,225 Business taxation 15,934 15,889 17,377 Taxation from other governments 15,000 13,424 12,760 Water and sewer billings 223,400 219,405 233,537 User charges 202,943 101,515 264,521 948,425 828,719 1,006,318 Grants Province of Ontario 311,579 288,027 158,149 Government of Canada 31,479 18,693 22,323 Other municipalities 13,254 6,379 9,132 356,312 313,099 189,604 Other Penalties on taxes 10,000 6,861 10,094 Investment income 1,500 1,347 528 Donations 2,500 4,926 4,785 14,000 13,134 15,407 Deduct Amounts for county and school boards (290,542) (297,186) (280,334) Proceeds from the issue of long-term liabilities 260,000 162,788 - Total sources of financing 1,288,195 1,020,554 930,995 MUNICIPAL FUND BALANCES AT THE BEGINNING OF THE YEAR (note 7) To be recovered from taxation or user charges (77,833) (77,833) (105,883) Capital operations not yet permanently financed (37,000) (37,000) (37,000) Total financing available during the year 1,173,362 905,721 788,112 See accompanying notes to the financial statements THE CORPORATION OF THE VILLAGE OF PORT BURWELL Consolidated Statement of Operations For the Year Ended December 31, 1994 Unaudited Audited Audited Budget Actual Actual 1994 1994 1993 $ $ $ APPLIED TO: Current operations General government 181,379 203,605 240,604 Fire protection 33,075 21,763 26,765 Other protection 26,760 29,214 16,441 Transportation services 109,720 121,253 115,875 Sanitary sewers 116,330 75,191 140,835 Waterworks system 76,070 76,438 87,677 Garbage collection 52,000 58,035 49,036 Recreation and cultural services 94,228 87,174 120,191 Planning and development 10,500 8,274 23,140 700,062 680,947 820,564 Capital General government 49,000 58,155 17,447 Harbour 18,000 9,000 - Protection to persons and property 17,800 10,762 3,352 Transportation services 174,500 133,062 5,151 Waterworks system 103,000 107,118 5,988 Recreation and cultural services 40,000 38,695 1,897 402,300 356,792 33,835 Net appropriations to reserves and reserve funds 71,000 9,116 48,546 Total funds applied 1,173,362 1,046,855 902,945 MUNICIPAL FUND BALANCES AT THE END OF THE YEAR (note 7) To be recovered from taxation or user charges - (52,017) (77,833) Capital operations not yet permanently financed - (89,117) (37,000) Total applications during the year 1,173,362 905,721 788,112 See accompanying notes to the financial statements THE CORPORATION OF THE VILLAGE OF PORT BURWELL Notes to the Financial Statements For the Year Ended December 31, 1994 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements of the Corporation of the Village of Port Burwell 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 necessarily involves the use of estimates and approximations. These have been made using careful judgments. Basis of Consolidation (i) These consolidated statements reflect the assets, liabilities, sources of financing and expenditures of the revenue fund, capital fund, reserve funds and reserves. The consolidated statements also include the activities of all committees of Council and the following boards which are under the control of Council: Port Burwell Waterworks Port Burwell Recreation, Parks and Community Centre Board Port Burwell Community and Historical Board All interfund assets, liabilities, sources of financing and expenditures have been eliminated with the exception of loans or advances between the reserve funds and any other funds of the municipality and the resulting interest income and expense. (ii) Non-consolidated entities There are no non-consolidated entities. (iii) Accounting for County and School Board Transactions The taxation, other revenue, expenditures, assets and liabilities with respect to the operations of the school boards and the County of Elgin, are not reflected in the municipal fund balances of these financial statements. Overlevies (underlevies) are reported on the Consolidated Balance Sheet as "other current liabilities" (other current assets"). (iv) The trust fund and its related operations administered by the Village is not consolidated, but are reported separately on the "Trust Funds Statement of Continuity and Balance Sheet". Basis of Accounting 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 period in which they are paid. 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. THE CORPORATION OF THE VILLAGE OF PORT BURWELL Notes to the Financial Statements For the Year Ended December 31, 1994 Capital Assets The historical cost and accumulated amortization for capital assets are not recorded for municipal purposes. Capital assets are reported as an expenditure on the Consolidated Statement of Operations in the year of acquisition. Capital Outlay to be Recovered in Future Years Capital outlay to be recovered in future years, which represents the outstanding principal portion of unmatured long-term liabilities for municipal expenditures is reported on the Consolidated Balance Sheet. 2. NEVADA FUNDS PAYABLE The municipality, through the operations of the Port Burwell Recreation Board, has been recording lottery related revenue, expenditures, assets and surplus in its consolidated financial statements since 1991. Surplus generated from Nevada funds has been taken into account in the past when the municipality set its budget and mill rates. At the time, the Village believed this to be acceptable accounting practice. The Gaming Control Commission states that Nevada related revenues and expenditures are not to be recorded in a municipality's financial statements. Removing the Nevada revenue, expenditures and surplus has caused the 1994 deficit to increase by $53,606, of which $17,679 relates to 1994 activity and $35,927 relates to 1991, 1992 and 1993. All adjustments have been reflected through the 1994 financial statements. An amount of $45,799 is payable to the Port Burwell Community Improvement and Recreation Society, an organization that is autonomous from municipal operations. 3. OPERATIONS OF SCHOOL BOARDS AND THE COUNTY OF ELGIN Further to note 1(iii) above, the taxation, other revenue, expenditures and overlevies of the school boards and the County of Elgin are comprised of the following: School Boards County $ $ Taxation and user charges 206,056 91,130 Requisitions 206,056 91,130 Overlevies (underlevies), end of year - - 4. LIABILITY FOR VESTED SICK LEAVE BENEFITS The municipality joined OMERS at the start of 1995. All sick leave benefits were paid out in full during 1994 and will no longer be accumulated. THE CORPORATION OF THE VILLAGE OF PORT BURWELL Notes to the Financial Statements For the Year Ended December 31, 1994 5. TRUST FUNDS Trust funds administered by the municipality amounting to $45,351 (unaudited)(1993 - $118,347) have not been included in the Consolidated Balance Sheet nor have their operations been included in the Consolidated Statement of Operations. 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: 1994 1993 $ $ Total long-term liabilities incurred by the municipality including those incurred on behalf of school boards, other municipalities and municipal enterprises and outstanding at the end of the year amount to 162,788 - (b) Of the net long-term liabilities reported in (a) of this note, $162,788 in principal payments are payable from 1995 to 1999 and are recoverable from general municipal revenues and consolidated municipal enterprises. (c) There were no principal or interest charges pertaining to net long-term liabilities reported in the Consolidated Statement of Operations. 7. MUNICIPAL FUND BALANCES The balances on the Consolidated Statement of Operations of municipal deficit of $(141,134) (1993 - $(114,833)) at the end of the year are comprised of the following: 1994 1993 $ $ For general increase of taxation (25,143) (35,116) For general reduction (increase) of user charges - Water 15,455 (929) - Sewer (16,143) (67,535) - Recreation (25,363) 26,763 - Museum (823) (1,016) (52,017) (77,833) Acquisition of capital assets to be financed from taxation or user charges (89,117) (37,000) (141,134) (114,833) THE CORPORATION OF THE VILLAGE OF PORT BURWELL Notes to the Financial Statements For the Year Ended December 31, 1994 8. RESERVES AND RESERVE FUNDS The total balance of reserves and reserve funds of $69,307 (1993 - $69,307) and $40,038 (1993 - $30,568) respectively are made up of the following: 1994 1993 $ $ Reserves set aside for specific purpose by Council For working capital 54,307 54,307 For waterworks purposes 15,000 15,000 69,307 69,307 Reserve funds set aside for specific purpose by Council For acquisition of fire truck 14,139 9,022 For sewage treatment plant capital 21,793 21,546 For museum 2,906 For seawall repair 1,200 - 40,038 30,568 9. CONTINGENCY - ONTARIO CLEAN WATER AGENCY In accordance with a service agreement entered into by the Village with the Ministry of Environment, which was subsequently assumed by the Ontario Clean Water Agency, existing sewage and water systems are owned and operated by the Agency. The Village is obligated to meet all operating costs and repay the long-term liabilities related to these projects. Included in the "Consolidated Statement of Operations" are the 1994 charges from the Agency for water of $42,857 and for sewage of $43,234 which the Village feels is full payment of 1994 fees. The Agency states that the Village still owes a further $23,836 related to 1994 sewage operations. Negotiations are in progress to resolve this issue. No provision has been made in the consolidated financial statements for this issue as the outcome is not yet determinable. Information received from the Agency as at March 31, 1994, indicates the following: Total Outstanding Accumulated 1994 Debt Long-Term (Deficit) Charges Liabilities Water systems $ (35,615) $ 4,282 $ 71,008 The operating surplus and long-term liabilities indicated above are not reflected in the accompanying financial statements. THE CORPORATION OF THE VILLAGE OF PORT BURWELL Notes to the Financial Statements For the Year Ended December 31, 1994 10. CONTINGENCY - OUTSTANDING 1993 AUDITING AND CONSULTING FEES The 1993 consolidated financial statements include an expenditure and payable of $22,315 for audit and related services. In the opinion of the Village and legal counsel, the municipality has a valid claim for non-payment of this charge. The prior year payable of $22,315 has been reversed out of the 1994 consolidated financial statements which decreased the 1994 deficit by $22,315. The net result is that the 1993 and 1994 transactions described above cancel each other. No provision has been made in the financial statements for the legal claim by the prior auditors as the outcome is not yet determinable. Council has notified the Ministry of Municipal Affairs that it will be setting aside general reserves in its 1995 budget to cover potential legal fees or payment of court settlement. 11. 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 1996. For the Village of Port Burwell, the target amount for each year is $1,378 and the deferred amount is $345. 12. SUPERVISION During 1993, the Village and its local boards and committees made application and was granted to be made subject to an Order governing its financial and administrative affairs under Part II of the Municipal Affairs Act. The Part II supervision was lifted effective January 24, 1995. 13. RECLASSIFICATION Certain 1993 balances have been reclassified to conform to the 1994 financial statement presentation. 14. COMPARATIVE FIGURES The comparative figures for 1993 are based upon financial statements which were reported on by other auditors. Financial Statements of the THE VILLAGE OF PORT BURWELL OHRP TRUST FUND December 31, 1994 Redfern, More ( Co. CHARTERED ACCOUNTANTS PARTNFRS J.A.Di GIOVANNI,B.Comm.,C.A. R.E.BARTH,B.Sc.,C.A. MANAGER B.D.GREEN,B.A.,C.A. R.ALLEN,B.A.,C.G.A. B.M.BUDARICK,B.Comm.,C.A. AUDITORS' REPORT To the Members of Council, Inhabitants and Ratepayers of The Corporation of the Village of fort Burwell We have audited the balance sheet of the OHRP Trust Fund of the Corporation of the Village of Port Burwell as at December 31, 1994 and the statement of continuity for the year then ended. These financial statements are the responsibility of the Village'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 financial statements present fairly, in all material respects, the financial position of the OHRP Trust Fund of the Corporation of the Village of Port Burwell as at December 31, 1994 and the results of its operations and the changes in financial position for the year then ended in accordance with generally accepted accounting principles, as modified in agreement with the Ministry of Housing. flt.,40itue.) 'Fib'• CHARTERED ACCOUNTANTS Tillsonburg, Ontario May 29, 1995 License Number 15898 22 HARVEY STREET, P.O.BOX 247,TILLSONBURG,ONTARIO N4G 4H5 Tel:(519)842-3604 Fax:(519)842-2178 OHRP TRUST FUND THE CORPORATION OF THE VILLAGE OF PORT BURWELL Statement of Continuity Year ended December 31, 1994 1994 1993 $ $ Balance, beginning of year 118,347 114,779 Capital Receipts Interest income - loans 2,284 2,492 Interest income - bank 986 2,676 3,270 5,168 Expenditures OHRP - loans forgiven - 1,600 Repayment to Ministry of Housing 76,267 - Village of Port Burwell administration fee 198 - 76,465 1,600 Excess (deficiency) Revenue over Expenditures (73,195) 3,568 Balance, end of year 45,152 118,347 Balance Sheet December 31, 1994 1994 1993 $ $ Assets Cash 4,938 76,267 Other assets (note 3) Loans receivable - repayable 37,612 37,815 Loans receivable - forgivable 2,800 4,265 45,350 118,347 Liability Administration fee payable 198 - Fund Balance Balance - capital 45,152 118,347 45,350 118,347 See accompanying notes to financial statements OHRP TRUST FUND THE CORPORATION OF THE VILLAGE OF PORT BURWELL Notes to the Financial Statements Year ended December 31, 1994 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These financial statements reflect the day to day operations of the OHRP Trust Fund, under administration by the Corporation of the Village of Port Burwell. The Trust Fund's receipts, disbursements, assets and liabilities are not included in the Village's consolidated financial statements. The financial statements of the OHRP Trust Fund are the representations of management prepared in accordance with accounting policies prescribed for Ontario municipalities by the Ministry of Housing. Since precise determination of many assets and liabilities is dependent upon future events, the preparation of periodic financial statements necessarily involves the use of estimates and approximations. These have been made using careful judgment. Basis of Accounting The accrual basis of accounting is used for the trust fund. 2. ONTARIO HOME RENEWAL PROGRAM The Ontario Home Renewal Program (OHRP) was established by the Ontario Ministry of Housing in 1973 to provide grants for municipalities to make loans to assist owner occupants to repair, rehabilitate and improve their homes to local property standards. Individual loans are limited to $7,500 of which the maximum forgivable portion is $4,000. In July 1993, OHRP was discontinued by the Ontario Ministry of Housing. No further OHRP loans will be issued under the program and the balance in the OHRP bank trust account at the end of the year is to be returned to the Province. Homeowners who currently have OHRP loans will not be affected by the cancellation of the program. Ontario Home Renewal Program loans receivable at December 31, 1994 is comprised of repayable loans of $37,612 (1993 - $37,815) and forgivable loans of $2,800 (1993 - $4,265). Loan forgiveness is earned and recorded at a rate of up to $600 per year of continued ownership and occupancy. In the event of the sale or lease of the home, or in the event of the homeowner ceasing to occupy the home, the balances of the repayable loan and the unearned forgivable loan immediately becomes due and payable by the homeowner. 3. COLLECTIBILITY OF LOANS Only one loan payment was received in 1994. The collectibility of loans receivable is questionable. No allowance has been recorded for potentially uncollectible accounts. 4. COMPARATIVE FIGURES The comparative figures for 1993 are based upon financial statements which were reported on by other auditors. 1994 FINANCIAL INFORMATION RETURN MUNICIPALITY: Village of Port Burwell in the Dian, Countyx:ati}i9toiet of: Elgin • DECLARATION OF THE MUNICIPAL TREASURER Pursuant to the determination of grants under the Ontario Unconditional Grants Act,and to the informal ion required by the Province under the Municipal Affairs Act,the following schedules are attached: AIInched x 1 Analysis of Revenue Fund Revenues — 221,T Analysis of Taxation x 2UT Analysis of Upper Tier Requisitions and Direct Charges ilia 2MA Analysis of Taxation in Merged Areas ._x 3 Analysis of Current Revenue for Specific Functions x — 4 Analysis of Revenue Fund Expenditures' x x 5 Analysis of Capital Operations 6 Analysis of Capital Grants and Own Expenditures x 7 Analysis of Net Long Term Liabilities By Function x 8 Analysis of Long Term Liabilities and Commitments — x 9LT Continuity of Upper Tier and School Board Leviesx — 10 Continuity of Reserves and Reserve Funds x I 1 Analysis of Consolidated Year End Balancesx _x 12 Statistical Data 15 Ontario Financing of Capital Loan Repaymentsa 13 Grant Information n/a 14 Grant Information nLa The schedules have been drawn up in accordance with the instructions provided by the Ministry of Municipal Affairs.They represent the consolidated financial activities of the municipality,all local boards,including joint hoards where applicable and any other local corporate entities set up by the municipality to provide services to ratepayers. The consolidated local boards and entities are: Port Burwell Waterworks . . Port Burwell Recreation, Parks . and Community Centre Board . . Port Burwell Community and . • Historical Board . Trust funds administered by the municipality and its local boards, harbour commissions, humane societies, municipal non-profit housing corporations, provincial-municipal housing authorities,sinking funds, retirement or pension plan funds, school boards, conservation authorities, children's aid societies, district health councils, municipal hospitals and gas,telephone and hydro utilities are not consolidated. The schedules have been prepared by Redfern, More & Co. (Auditor's run or name of(vIunicipality) Questions regarding the information contained in them should be addressed to Brian Budarick „l (519) 042 3604 (Arca cote nil telephone) 4111111 Date . .Gl A/L I` 1995 ... t•.../ M ticipa rea rarer ONTARIO MINISTRY OF MUNICIPAL AFFAIRS 1994 FINANCIAL INFORMATION RETURN Please read instructions before completing (Round amounts to nearest dollar) Municipality: Port Burwell Status: LOWER TIER Regn/Cty/Dist: ELGIN Cnty/Mn Code: 3402 from Assessment Roll Is this an upper tier municipality?: N (Y/N) Are merged areas being reported?: N (Y/N) Computer use: nThil Redfern, More €3 Co. CHARTERED ACCOUNTANTS PARTNERS J.A.Di GIOVANNI,B.Comm.,C.A. R.E.BARTH,B.Sc..C.A. B.D.GREEN,B.A.,C.A. J IANAQ B.M.BUDARICK,B.Comm.,C.A. R.ALLEN,B.A.,C.G.A. ACCOUNTANT'S REPORT IN ACCORDANCE WITH SCHEDULES 1 TO 11 AND 15 OF THE FINANCIAL INFORMATION RETURN To the Ministry of Municipal Affairs Our audit of the consolidated financial statement of the Corporation of the Village of Port Burwell for the year ended December 31, 1994 was made for the purpose of forming an opinion on the consolidated financial statements referred to in our auditors' report to the Members of Council, Inhabitants and Ratepayers dated March 16, 1995. Schedules 1 to 11 and 15 of the 1994 Financial Information Return have not been prepared on the same basis as the consolidated financial statements. For purposes of this report we have performed, at your request, the following procedures in connection with Schedules 1 to 11 and 15 of the Financial Information Return of the Corporation of the Village of Port Burwell for the year ended December 31, 1994. (a) We have compared the amounts disclosed on these schedules to the books and records of the Village of Port Burwell and found them to be in agreement; (b) We have added and cross-added all schedules and found them to be arithmetically correct; and, (c) We have checked the cross-references indicated in the "Cross-Reference to Other Schedules" section for each of the above-noted schedules, as outlined in the "Instructions for Completing the 1994 Financial Information Return", and found all such cross references to be in agreement. The above-noted procedures do not constitute an audit of these schedules. Therefore, we do not express an opinion on Schedules 1 to 11 and 15 of the 1994 Financial Information Return. Tillsonburg, Ontario , May 29, 1995 REDFERN, MORE & CO. License Number 15898 Chartered Accountants 22 HARVEY STREET, P.O.BOX 247,TILLSONBURG,ONTARIO N4G 4H5 Tel:(519)842-3604 Fax:(519)842-2178 SCHEDULE 1 Port Burwell ANALYSIS OF REVENUE FUND upper school REVENUES total tier board own For the year ending Dec 31, 1994 revenue purposes purposes purposes Note: Upper tiers use column 4 only 1 2 3 4 $ $ $ $ Taxation Taxation from schedule 2LT (or requsitions from schedule 2UT) 1 494,375 86,247 206,129 201,999 Direct water billings on ratepayers -- own municipality 2 89,081 89,081 -- other municipalities 3 3,742 3,742 Sewer surcharge on direct water billings -- own municipality 4 126,582 126,582 -- other municipalities 5 0 Subtotal 6 713,780 86,247 206,129 421,404 Payments in lieu of taxes Canada 7 0 Canada enterprises 8 0 Ontario The Municipal Tax Assistance Act 9 10,112 4,810 5,302 The Municipal Act, section 160 10 0 Other 11 0 Ontario enterprises Ontario Housing Corporation 12 0 Ontario Hydro 13 0 Liquor Control Board of Ontario 14 3,312 3,312 Other 15 0 Municipal enterprises 16 0 Other municipalities and enterprises 17 0 Subtotal 18 13,424 4,810 0 8,614 Ontario unconditional grants Per household general 19 xxxxxxxxxxxxx xxxxxxxxxxxxx xxxxxxxxxxxxx xxxxxxxxxxxxx Per household police 20 xxxxxxxxxxxxx xxxxxxxxxxxxx xxxxxxxxxxxxx xxxxxxxxxxxxx Transitional and special assistance 22 0 Resource equalization 23 xxxxxxxxxxxxx xxxxxxxxxxxxx xxxxxxxxxxxxx xxxxxxxxxxxxx General support 24 xxxxxxxxxxxxx xxxxxxxxxxxxx xxxxxxxxxxxxx xxxxxxxxxxxxx Northern special support 25 xxxxxxxxxxxxx xxxxxxxxxxxxx xxxxxxxxxxxxx xxxxxxxxxxxxx Apportionment guarantee 26 0 Revenue guarantee 27 xxxxxxxxxxxxx xxxxxxxxxxxxx xxxxxxxxxxxxx xxxxxxxxxxxxx Subtotal 28 106,360 106,360 Revenues for specific functions Ontario specific grants 29 48,792 48,792. Canada specific grants 30 9,681 9,681 Other municipalities--grants and fees 31 12,056 12,056 Fees, service charges and donations 32 91,430 91,430 Subtotal 33 161,959 0 0 161,959 Other revenue Trailer revenue and licences 34 0 Licences and permits 35 9,334 9,334 Fines 37 0 Penalties and interest on taxes 38 6,861 6,861 Investment income--from own funds 39 1,347 1,347 --other 40 0 Sale of publications, equipment, etc. 42 0 Contributions from capital fund 43 0 Contributions from reserves and reserve funds 44 0 Contributions from non consolidated entities 45 0 Other 46 0 47 0 48 0 Sale of land 49 0 Subtotal 50 17,542 0 0 17,542 Total revenue 51 1,013,065 91,057 206,129 715,879 SCHEDULE 3 Port Burwell ANALYSIS OF CURRENT REVENUES other FOR SPECIFIC FUNCTIONS Ontario municip'ties fees, service For the year ending Dec 31, 1994 specific Canada grants, fees & charges & grants* grants service charges donations 1 2 3 4 $ $ $ $ General government 1 1,800 9,681 45,681 Protection to persons and property Fire 2 Police 3 Conservation authority 4 Protective inspection and control 5 6 Subtotal 7 0 0 0 0 Transportation services Roadways 8 41,992 5,754 Winter control 9 Transit 10 Parking 11 Street lighting 12 Air transportation 13 Harbour 14 625 11,350 Subtotal 15 41,992 0 6,379 11,350 Environmental services Sanitary sewer system 16 546 Storm sewer system 17 Waterworks system 18 Garbage collection 19 Garbage disposal 20 Pollution control 21 22 Subtotal 23 0 0 0 546 Health services Public health services 24 Public health inspection and control 25 Hospitals 26 Ambulance services 27 Cemeteries 28 29 Subtotal 30 0 0 0 0 Social and family services General assistance 31 Assistance to aged persons 32 Assistance to children 33 Day nurseries 34 35 Subtotal 36 0 0 0 0 Recreation and cultural services Parks and recreation 37 5,000 22,425 Libraries 38 5,677 Other cultural 39 11,128 Subtotal 40 5,000 0 5,677 33,553 Planning and development Planning and zoning 41 300 Commercial and industrial 42 Residential development 43 Agricultural and reforestation 44 Tile drainage/shoreline assistance 45 xxxxxxxxxxxxxx xxxxxxxxxxxxx xxxxxxxxxxxxx 46 Subtotal 47 0 0 0 300 Electricity 48 Gas 49 Telephone 50 Total 51 48,792 9,681 12,056 91,430 * includes Ontario financing of capital loans repayments (for details see schedule 15) SCHEDULE 5 Port Burwell ANALYSIS OF CAPITAL OPERATIONS For the year ending Dec 31, 1994 1 $ Unfinanced capital outlay (Unexpended capital financing) at the beginning of the year 1 37,000 Sources of financing Contributions from own funds Revenue fund 2 Reserves and reserve funds 3 Subtotal 4 0 Long term liabilities incurred Central Mortgage and Housing Corporation 5 Ontario Municipal Improvement Corporation 7 Commercial Area Improvement Program 9 Other Ontario housing programs 10 Ontario Clean Water Agency 11 Other loans from Ontario Capital Corporations 50 Tile drainage and shoreline property assistance programs 12 The Public Serial debentures 13 Sinking fund debentures 14 CIBC 15 162,788 16 17 Subtotal * 18 162,788 Grants and loan forgiveness Ontario 20 132,875 Canada 21 9,012 Other municipalities 22 0 Subtotal 23 141,887 Other financing Prepaid special charges 24 Proceeds from sale of fixed assets 25 Investment income From own funds 26 Other 27 Donations 28 30 31 Subtotal 32 0 Total sources of financing 33 304,675 Applications Own expenditures Short term interest costs 34 Other 35 356,792 Subtotal 36 356,792 Transfers of proceeds from long term liabilities to: Other municipalities 37 Unconsolidated local boards 38 Individuals 39 Subtotal 40 0 Transfers to reserves, reserve funds and the revenue fund 41 Total applications 42 356,792 Unfinanced capital outlay (Unexpended capital financing) at the end of the year 43 89,117 Amount reported in line 43 analysed as follows: Unapplied capital receipts (negative) 44 To be recovered from: --taxation or user charges within term of council 45 --proceeds from long term liabilities 46 89,117 --transfers from reserves and reserve funds 47 --other (specify) 48 Total unfinaced capital outlay (unexpended capital financing) 49 89,117 *amount in line 18 raised on behalf of other municipalities 19 SCHEDULE 6 Port Burwell ANALYSIS OF CAPITAL GRANTS AND OWN EXPENDITURES CAPITAL GRANTS For the year ending Dec 31, 1994 TOTAL Ontario Canada Other OWN grants grants municip'ties EXPENDITURES 1 2 3 4 $ $ $ $ General government 1 9,012 9,012 58,155 Protection to persons and property Fire 2 10,762 Police 3 Conservation authority 4 Protective inspection and control 5 6 Subtotal 7 0 0 0 10,762 Transportation services Roadways 8 36,508 128,296 Winter control 9 Transit 10 Parking 11 Street lighting 12 4,766 Air transportation 13 Harbour 14 9,000 Subtotal 15 36,508 0 0 142,062 Environmental services Sanitary sewer system 16 Storm sewer system 17 Waterworks system 18 87,355 107,118 Garbage collection 19 Garbage disposal 20 Pollution control 21 22 Subtotal 23 87,355 0 0 107,118 Health services Public health services 24 Public health inspection and control 25 Hospitals 26 Ambulance services 27 Cemeteries 28 29 Subtotal 30 0 0 0 0 Social and family services General assistance 31 Assistance to aged persons 32 Assistance to children 33 Day nurseries 34 35 Subtotal 36 0 0 0 0 Recreation and cultural services Parks and recreation 37 38,201 Libraries 38 Other cultural 39 494 Subtotal 40 0 0 0 38,695 Planning and development Planning and zoning 41 Commercial and industrial 42 Residential development 43 Agricultural and reforestation 44 Tile drainage/shoreline assistance 45 xxxxxxxxxxxxxx xxxxxxxxxxxxx xxxxxxxxxxxxx xxxxxxxxxxxxx 46 Subtotal 47 0 0 0 0 Electricity 48 Gas 49 Telephone 50 Total 51 132,875 9,012 0 356,792 SCHEDULE 7 Port Burwell ANALYSIS OF NET LONG TERM LIABILITIES BY FUNCTION 1 For the year ending Dec 31, 1994 $ General government 1 51,949 Protection to persons and property Fire 2 2,142 Police 3 Conservation authority 4 Protective inspection and control 5 6 Subtotal 7 2,142 Transportation services Roadways 8 39,864 Winter control 9 Transit 10 Parking 11 Street lighting 12 4,766 Air transportation 13 Harbour 14 Subtotal 15 44,630 Environmental services Sanitary sewer system 16 Storm sewer system 17 Waterworks system 18 28,276 Garbage collection 19 Garbage disposal 20 Pollution control 21 22 Subtotal 23 28,276 Health services Public health services 24 Public health inspection and control 25 Hospitals 26 Ambulance services 27 Cemeteries 28 29 Subtotal 30 0 Social and family services General assistance 31 Assistance to aged persons 32 Assistance to children 33 Day nurseries 34 35 Subtotal 36 0 Recreation and cultural services Parks and recreation 37 35,791 Libraries 38 Other cultural 39 Subtotal 40 35,791 Planning and development Planning and zoning 41 Commercial and industrial 42 Residential development 43 Agricultural and reforestation 44 Tile drainage/shoreline assistance 45 46 Subtotal 47 0 Electricity 48 Gas 49 Telephone 50 Total 51 162,788 SCHEDULE 8 Port Burwell ANALYSIS OF LONG TERM LIABILITIES AND COMMITMENTS 1 For the year ending Dec 31, 1994 $ 1. Calculation of debt burden of the municipality All debt issued by the municipality, predecessor municipalities and consolidated entities : To Ontario and agencies 1 : To Canada and agencies 2 : To other 3 162,788 Subtotal 4 162,788 Plus: All debt assumed by the municipality from others 5 Less: All debt assumed by others : Ontario -- special purpose loans 80 : Ontario -- other 81 : Schoolboards 7 : Other municipalities 8 Subtotal 9 0 Less: Ontario Clean Water Agency debt retirement funds--sewer 10 --water 11 Own sinking funds (actual balances) --general 12 --enterprises and other 13 Subtotal 14 0 Total 15 162,788 Amount reported in line 15 analysed as follows: Sinking fund debentures 16 Installment (serial) debentures 17 Long term bank loans 18 162,788 Lease purchase agreements 19 Mortgages 20 Ontario Clean Water Agency 22 23 24 2. Total debt payable in foreign currencies (net of sinking fund holdings) U.S. $--Cdn $ equivalent incl in line 15 above 25 --par value of this amount in U.S.$ 26 Other --Cdn $ equivalent incl in line 15 27 --par value of this amount in 28 3. Interest earned on sinking funds and debt retirement funds during the year Own funds 29 Ontario Clean Water Agency--sewer 30 --water 31 4. Actuarial balance of own sinking funds at year end 32 5. Long term conmitments and contingencies at year end Total liability for accumulated sick pay credits 33 Total liability under OMERS plans --initial unfunded 34 (payable over _ yrs)(no. of employees _) --actuarial deficiency 35 (payable over _ yrs) Total liability for own pension funds --initial unfunded 36 (payable over _ yrs)(no. of employees _) --actuarial deficiency 37 (payable over _ yrs) Outstanding loan guarantees 38 (payable over _ yrs) Commitments and liabilities financed from revenue, as approved by the Ontario Municipal Board or Council, as the case may be --hospital support 39 --university support 40 --Leases and other agreements 41 Other (specify) . 42 43 44 Total 45 0 SCHEDULE 8 Port Burwell ANALYSIS OF LONG TERM LIABILITIES AND COMMITMENTS For the year ending Dec 31, 1994 6. Ontario Clean Water Agency Provincial Projects total accumulated outstanding surplus capital debt (deficit) obligations charges 1 2 3 $ $ $ Water projects--for this municipality only 46 --share of integrated project(s) 47 (35,615) 71,008 4,282 Sewer projects--for this municipality only 48 --share of integrated project(s) 49 principal interest 7. 1994 Debt Charges 1 2 Recovered from consolidated revenue fund $ $ --general tax rates* 50 2,592 --special area rates and special charges 51 --benefitting landowners 52 --user rates (consolidated entities) 53 771 Recovered from reserve funds 54 Recovered from unconsolidated entities --hydro 55 --gas and telephone 57 -- 56 -- 58 -- 59 Total 78 0 3,363 8. Future principal and interest payments on EXISTING net debt recoverable from the recoverable from recoverable from consolidated revenue fund reserve funds unconsolidated entities principal interest principal interest principal interest 1 2 3 4 5 6 $ $ $ $ $ $ 1995 60 32,558 22,000 1996 61 32,558 17,000 1997 62 32,558 12,000 1998 63 32,557 7,000 1999 64 32,557 2,000 2000-2004 65 2005 onwards 79 Interest to be earned on sinking funds* 69 Downtown revital- ization program 70 Total 71 162,788 60,000 0 0 0 0 *includes interest to be earned on Ontario Clean Water Agency debt retirement funds 9. Future principal payments on EXPECTED NEW debt 1 $ 1995 72 1996 73 29,966 1997 74 29,966 1998 75 29,966 1999 76 29,966 Total - 77 119,864 10. Other notes; please submit other notes in paper copy, and attach supporting schedule as required. * includes Ontario financing of capital loan repayments (for details see schedule 15) SCHEDULE 10 Port Burwell CONTINUITY OF RESERVES AND RESERVE FUNDS 1 For the year ending Dec 31, 1994 $ Balance at beginning of year 1 99,875 Revenues Contributions from revenue fund 2 9,116 Contributions from capital fund 3 Development Charges Act 67 Lot levies and subdivider contrbutions 60 Recreational land (the Planning Act) 61 Investment income--from own funds 5 --other 6 354 9 10 11 12 Total revenue 13 9,470 Expenditures Transferred to capital fund 14 Transferred to revenue fund 15 Charges for long term liabilities --principal and interest 16 63 20 21 Total expenditure 22 0 Balance at end of year for: Reserves 23 69,307 Reserve funds 24 40,038 Total 25 109,345 analysed as follows: Working funds 26 54,307 Contingencies 27 Ontario Clean Water Agency funds for renewals, etc --sewer 28 --water 29 Replacement of equipment 30 14,139 Sick leave 31 Insurance 32 Workers' compensation 33 Capital expenditure--general administration 34 --roads 35 --sanitary and storm sewers 36 21,793 --parks and recreation 64 --library 65 --other cultural 66 2,906 --water 38 --transit 39 --housing 40 --industrial development 41 --other and unspecified 42 1,200 Development Charges Act 68 Lot levies and subdivider contributions 44 Recreational land (the Planning Act) 46 Parking revenues 45 Debenture debt 47 Exchange rate stabilization 48 Waterworks current purposes 49 15,000 Transit current purposes 50 Library current purposes 51 52 53 54 55 56 57 Total 58 109,345 SCHEDULE 11 Port Burwell ANALYSIS OF CONSOLIDATED YEAR END BALANCES 1 2 For the year ending Dec 31, 1994 $ $ ASSETS not in Current assets chartered bank Cash 1 40,038 Accounts receivable Canada 2 19,662✓ Ontario 3 58,139 / Region or county 4 Other municipalities 5 School boards 6portion of Waterworks 7 45,008'taxes rec'ble Other (including unorganized areas) 8 21,367 for business Taxes receivable taxes Current year's levies 9 24,508 (138) Previous year's levies 10 4,429 103 Prior years' levies 11 2,730 425 Penalties and interest 12 2,003 0 Less allowance for uncollectables (negative) 13 Investments (market value $) Canada 14 Provincial 15 Municipal 16 portion of Other 17 line 20 for Other current assets 18 4,501✓ tax sale/tax Capital outlay to be recovered in future years 19 162,788 registration Other long term assets 20 Total 21 385,173 LIABILITIES not from chartered Current liabilities banks Temporary loans--current purposes 22 2,902 --capital--Ontario 23 --Canada 24 --Other 25 Accounts payable and accrued liabilities Canada 26 2,780 Ontario 27 7,550 Region or county 28 6,928 Other municipalities 29 1,875 School boards 30 682 Trade accounts payable 31 185,658 Other 32 45,799 Other current liabilities 33 Net long term liabilities Recoverable from the Consolidated Revenue Fund --general tax rates 34 162,788 --special area rates and special charges 35 --benefitting landowners 36 --user rates (consolidated entities) 37 Recoverable from Reserve Funds 38 Recoverable from unconsolidated entities 39 Less:Own holdings (negative) 40 Reserves and reserve funds 41 109,345 Accumulated net revenue (deficit) General revenue 42 (25,143) Special charges and special areas (specify) 43 44 45 46 Consolidated local boards (specify) Transit operations 47 Water operations 48 15,455 Libraries 49 Cemeteries 50 Recreation, community centres and arenas 51 (25,363) Sewer operations 52 (16,143) Museum 53 (823) 54 55 Region or county 56 School boards 57 Unexpended capital financing/ (unfinanced capital outlay) 58 (89,117) Total 59 385,173 SCHEDULE 12 Port Burwell STATISTICAL DATA For the year ending Dec 31, 1994 1. Number of continuous full time employees as at Dec 31 1 Administration 1 3 Non-line Departmental Support Staff 2 1 Fire 3 Police 4 Transit 5 Public Works 6 2 Health Services 7 Homes for the Aged 8 Other Social Services 9 Parks and Recreation 10 Libraries 11 Planning 12 Total 13 6 continuous full time employees December 31 Other 1 2 2. Total expenditures during the year on: $ $ Wages and salaries 14 153,274 27,866 Employee benefits 15 12,173 1,797 3. Reductions of tax roll during the year 1 (lower tier municipalities only) $ Cash collections: Current year's tax 16 474,174 Previous years' tax 17 40,623 Penalties and interest 18 Subtotal 19 514,797 Discounts allowed 20 Tax adjustments under section 362 and 263 of the --amounts added to the roll (negative) 22 --amounts written off 23 Tax adjustments under sections 465,495 and 496 of the Municipal Act --recoverable from upper tier and school boards 24 --recoverable from general municipal revenues 25 Transfers to tax sale and tax registration accounts 26 The Municipal Elderly Residents' Assistance Act --reductions 27 --refunds 28 Other (specify) 80 Total reductions 29 514,797 Amounts added to the tax roll for collection purposes only 30 Business taxes written off under subsection 495(1) of the Municipal Act 81 4. Tax due dates for 1994 1 Interim billings: Number of installments 31 2 Due date of first installment (MMDDYY) 32 33194 Due date of last installment (MMDDYY) 33 52794 Final billings: Number of installments 34 2 Due date of first installment (MMDDYY) 35 83194 Due date of last installment (MMDDYY) 36 112594 Supplementary taxes levied with a 1995 due date 37$ 0 long term financing requirements approved by submitted but forecast not 5. Projected capital expenditures and long term gross the OMB not yet app'vd yet submitted financing requirements as at December 31 expenditure or council by OMB/council to OMB/council 1 2 3 4 Estimated to take place $ $ $ $ In 1995 58 274,500 149,834 In 1996 59 300,000 200,000 In 1997 60 In 1998 61 In 1999 62 Total 63 574,500 0 0 349,834 balance loans in fund outstanding 1 2 $ $ 6. Ontario Home Renewal Plan trust fund at year end 82 45,152 40,412 SCHEDULE 12 Port Burwell STATISTICAL DATA For the year ending Dec 31, 1994 7. Analysis of direct water and sewer billings as water at December 31 number of 1994 billings residential residential all other computer units units properties use only 1 2 3 $ $ In this municipality 39 459 85,324 3,757 In other municipalities (specify municipality) Bayham 40 7 3,742 41 42 43 64 sewer number of 1994 billings residential residential all other computer units units properties use only 1 2 3 $ $ In this municipality 44 425 120,510 6,072 In other municipalities (specify municipality) 45 46 47 48 65 water sewer Number of residential units in this municipality receiving municipal water and sewer services but 1 2 which are not on direct billing 66 8. Selected investments of own sinking funds other as at December 31 own municipalities, municipality school boards Province Federal 1 2 3 4 $ $ $ $ Own sinking funds 83 9. Borrowing from own reserve funds 1 Loans or advances due to reserve funds as $ at December 31 84 10. Joint boards consolidated by this municipality this municipal- contributions ity's share of total board from this total municipal computer expenditure municipality contributions use only 1 2 3 $ $ 53 • 54 55 • 56 57 SCHEDULE 12 Port Burwell STATISTICAL DATA For the year ending Dec 31, 1994 Port Burwell 11. Applications to the Ontario Municipal tile drainage Board or Council shoreline assist- ance, downtown revitalization, other other electricity submitted submitted gas, telephone to OMB to council total 1 2 4 3 $ $ $ $ Approved but not financed as at Dec. 31, 1993 67 0 Approved in 1994 68j(L; 7r5C 0 Financed in 1994 69r 0 No long term financing necessary 70 �jlln- 0 Balance approved but not financed as at Dec. 31, 1994 71 0 Applications submitted but not approved as at Dec. 31, 1994 72 0 12. Forecast of total revenue fund expenditures 1995 1996 1997 1998 1999 1 2 3 4 5 $ $ $ $ $ 73 Redfern, More L Co. CJ CHARTERED ACCOUNTANTS PARTNFRS J.A.Di GIOVANNI,B.Comm.,C.A. R.E.BARTH,B.Sc.,C.A. MANAGER B.D.GREEN,B.A.,C.A. R.ALLEN,B.A.,C.G.A. B.M.BUDARICK,B.Comm.,C.A. AUDITOR'S REPORT To the Ministry of Municipal Affairs We have audited the grant information schedule 13 of the Financial Information Return of the Corporation of the Village of Port Burwell for the year ended December 31, 1994. This schedule is the responsibility of the Village's management. Our responsibility is to express an opinion on this schedule 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 this schedule is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures on this schedule. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall schedule presentation. In our opinion, this schedule presents fairly, the grant information shown therein in accordance with instructions issued by the Ministry of Municipal Affairs for the year 1994. Tillsonburg, Ontario 't / LM40jLb LOLv. May 29, 1995 Redfern, More & Co. License Number 15898 CHARTERED ACCOUNTANTS 22 HARVEY STREET,P.O.BOX 247,TILLSONBURG,ONTARIO N4G 4H5 Tel:(519)842-3604 Fax:(519)842-2178 SCHEDULE 13 Port Burwell GRANT INFORMATION For the year ending Dec 31, 1994 ANALYSIS OF REVENUE FUND REVENUES 1 Note: Upper tiers use column 4 only. upper tier own purposes purposes 2 4 $ $ Taxation Direct water billings on ratepayers - own municipality 2 89,081 Sewer surcharge on direct water billings - own municipality 4 126,582 Payments in lieu of taxes Subtotal 18 4,810 8,614 ANALYSIS OF TAXATION 2LT LOCAL TAXABLE ASSESSMENT residential commercial and farm and industrial business 1 2 3 I. Own purposes $ $ $ (a) Levied by mill rate General 30 1,058,016 98,207 34,165 police villages at reduced rates 31 farms at reduced rates 32 xxxxxxxxxxxxxxxxxxxxxxxxxxxx TAXES LEVIED commercial and industrial business total 7 8 12 $ $ $ Subtotal levied by mill rate 1 18,967 6,395 xxxxxxxxxxxxxx Share of telephone and telegraph taxation 2 xxxxxxxxxxxxxxxxxxxxxxxxxxxxx 5,474 Total own purposes taxation 4 xxxxxxxxxxxxxxxxxxxxxxxxxxxxx 201,999 II. Upper tier purposes Subtotal levied by mill rate 5 7,351 2,754 xxxxxxxxxxxxxx Share of telephone and telegraph taxation 6 xxxxxxxxxxxxxxxxxxxxxxxxxxxxx 2,190 Total own purposes taxation 8 xxxxxxxxxxxxxxxxxxxxxxxxxxxxx 86,247 ANALYSIS OF CAPITAL OPERATIONS 5 1 $ Other financing Prepaid special charges 24 SCHEDULE 15 Port Burwell ONTARIO FINANCING OF CAPITAL LOAN REPAYMENTS For the year ending Dec 31, 1994 principal interest 1 2 $ $ General government 1 Protection to persons and property Fire 2 Police 3 Conservation authority 4 Protective inspection and control 5 6 Subtotal 7 0 0 Transportation services Roadways 8 Winter control 9 Transit 10 Parking 11 Street lighting 12 Air transportation 13 14 Subtotal 15 0 0 Environmental services Sanitary sewer system 16 Storm sewer system 17 Waterworks system 18 Garbage collection 19 Garbage disposal 20 Pollution control 21 22 Subtotal 23 0 0 Health services Public health services 24 Public health inspection and control 25 Hospitals 26 Ambulance services 27 Cemeteries 28 29 Subtotal 30 0 0 Social and family services General assistance 31 Assistance to aged persons 32 Assistance to children 33 Day nurseries 34 35 Subtotal 36 0 0 Recreation and cultural services Parks and recreation 37 Libraries 38 Other cultural 39 Subtotal 40 0 0 Planning and development Planning and zoning 41 Commercial and industrial 42 Residential development 43 Agricultural and reforestation 44 Tile drainage/shoreline assistance 45 46 Subtotal 47 0 0 Electricity 48 Gas 49 Telephone 50 Total 51 0 0 _REDFERN_MORE_&_CO . TEL No . 519 842 2178 Sep 05 , 95 4 : 18 P .02/05 SEF S3195 146:54 FR MMR LUNUUN '519 661 lbrr IU ul :21u4eei (u MINISTRY OF MUNICIPAL AFFAIRS U \ LL P6 E of Po(2,-r vjz.w 6 L` (Name of Municipality) ANNUAL AUDIT QUESTIONNAIRE FOR THE YEAR ENDED DECEMBER 31, 1923.1 To be Completed by the.municipal auditor and submitted directly to the appropriate regional office by April 30th pursuant to the provisions of Section 82 of the Municipal Act, Chapter 45 and Part II, Section 3 of the Municipal Affairs Act, Chapter 46 of the Revised Statues of Ontario, 1990. (Applies to the municipality and all audited local boards) To BE COjrI LETED RY THE MUNICIPAL AUDTIQH 1. of the total hours charged for the year under review, approximately how much time was spent in each of the following areas: Approximate Percentage of Tire charq& (a) Bookkeeping and accounting services 10 % • (b). Budgeting and financial planning (c) Preparation of Financial Return and Financial Information Return 14 (d) Auditing 80 (a) Other Total for year review 100% REDFERN_MORE_&_C0 . TEL No . 519 842 2178 Sep 05 , 95 4 : 18 P .03/05 SEP e1 ' S5 10 ;55 FR MMM LONDON 519 661 1677 10 d151tt4CGi rtJ r. vase: — 2 - Circle Yea pr No 2 . During the course .of your audit, were there any matters that you identified that you have reported to or intend to report to your client, either in No writing or verbally? 0/5 If Yes, please state what they are. PL E NSN tZ6��.e T4 Twp Iv A-9 ‘N., -r-r = L . V F-• w - • E _ . Circle y,2 or No '3 . Did you submit a management letter for the year prior to the year under review. Yes No 4 . (Not applicable if answer to Question #3 is No) Nvi: A-or Did you discuss this management letter with? (a) the Council, No (b) the Treasurer Yes , No (c) Other Yes No (Please specify) Have all matters bean resolved to your satisfaction? Yee NO Wig, please comment p'- t:Ls h ArN A-a v_1-S ti rJ'r 1, Ttql ,REDFERN_MORE_&_C0 . TEL No . 514 842 2178 Sep 05 , 95 4 : 18 P .04/05 SEP 01 ' 95 10 : 55 FR MMA LONDON 519 661 1677 TO 815198422178 P.04/05 - 3 - circle yea or No 5. (a) Does your firm have the audit responsibility for any joint local board where this municipality is a participating member? Yes No • If Yeses_ (i) show name of joint local board(a) • (ii) show name of municipality with which local board's financial Statement was consolidated (iii) ason ir financial show ent not consolidated • (b) Did you send copies of the audited statements to the councils of all participating 'munioipalitiea and to the province regardless of whether the statement was . consolidated or not? Yes No 6 (a) Was fidelity bond coverage taken out as required by section 94 of the Municipal Act? C-Ye ) No If Yes, Type of Bond Amount this Year $_2!",e21010,1-0 last Year $ 20 o aoJ� 1? (b) was the fidelity bond produced to council as required by Section 94 (3)? Yes No ,REDFERN_MORE_&_C0 . TEL No . 519 842 2178 Sep 05 , 95 4 : 19 P . 05/05 SEP 01 ' iib 10 : 56 FR NIMH LONDON 519 661 1677 10 615198422178 P . 05/85 — 4 _ 7 . Did you review this questionnaire with No the Treasurer? R�DF�. - . tao� co ( p oP( Nti ?7,A `Sh,or.,D, LICENCE NO. t 5 Bg Signature of Firm 4/Z/ ¢ O, . - - Name of Partner in Charge t ‘ Po"' esoRedfern, More & C . CHARTERED ACCOUNTANTS PARTNERS J.A.Di GIOVANNI,B.Comm.,C.A. R.E.BARTH,B.Sc.,C.A. B.D.GREEN,B.A.,C.A. MANAGER B.M.BUDARICK,B.Comm.,C.A. R.ALLEN,B.A.,C.G.A. May 29, 1995 The Village of Port Burwell P.O. Box 10 0185111\1121 Pitt Street Port Burwell, Ontario NOJ 1 TO Attention: Reeve Tom Nesbitt, Members of Council and Administrator/Clerk-Treasurer Dear Sirs/Madam: We have completed our audit of the Village of Port Burwell for the year ended December 31, 1994. It is apparent that the Village has been working hard at improving its operations over the past year. This is a result of Council and management initiative and the hiring of staff having strong accounting and computer skills. We have made observations and recommendations based on this year's audit to help safeguard the Village's assets, maintain reliable, efficient accounting records, assist in operations and adhere to Ministry of Municipal Affairs requirements. 1. Tax Revenue, Receivable, Receipts During the first eight months of the year, interest and penalties on outstanding taxes were calculated incorrectly and tax account reconciliations were not completed on a timely basis. These problems were apparently the result of changes made to the tax software package and staff's inexperience with completing reconciliations using the New Views software package and not knowing specific requirements of municipal accounting concerning interest and penalty calculations. Mistakes were corrected by year end and tax account reconciliations are now completed in a timely manner. We recommend, in the event of key staff turnover, that proper and prompt training be given concerning the operations of the New Views software program and specific requirements of municipal accounting. One inefficiency of your software package is that it does not provide the details necessary to complete the Municipality's Financial Information Return. Certain tax accounts must be broken down manually by your staff prior to completing the return. 22 HARVEY STREET,P.O.BOX 247,TILLSONBURG,ONTARIO N4G 4H5 Tel:(519)842-3604 Fax:(519)842-2178 Village of Port Burwell ../2 g 1\11‘s V 2. Purchases/Payables/Payments System By the end of the year, internal controls in the Purchases/Payables/Payments System appeared to be adequate. Presently, purchases are approved by the department head, Council approves the accounts payable listing and the related supplier invoices, cheques are prepared and signed by the Treasurer, a cheque summary is generated which agrees to the approved accounts payable listing and a council member then signs the cheques and signs off the cheque summary to indicate all invoices approved for payment were actually paid. 3. Water and Sewer Billing System The Kime, Mills Dunlop report recommended that water readings input into the computer be checked by another staff member to prevent billing errors. As well, the report recommended permanent records be prepared for all properties. Both recommendations are now being followed. 4. User Charges As mentioned in prior reports, Wharfinger Lease/Dockage Fees and Beer Tent/Tub Daze Fair revenue lacked adequate internal controls to safeguard assets. It is our understanding that significant changes are being made in 1995 to the operations of all the above to better control these functions. Since 1991, Nevada funds have been included in the Village's financial statements. In order to adhere to the Gaming Control Commission guidelines, all current and prior year Nevada revenues and expenses have been removed from the 1994 financial statements. 5. New Views Software Package The Kime, Mills Dunlop report mentions that the New Views system is workable but not ideal for a municipality. The Village should continue to monitor the benefits of keeping the New Views software verses the cost of purchasing a new municipal software program and the associated expenditures on hardware, maintenance and training involved in switching software programs. It is our understanding that switching to a municipal software program would be costly. In consideration of limited funds of the Village at this time, this type of purchase may be best postponed until a later date. Currently, your New Views system does not produce a trial balance which is a report produced by most accounting packages. A trial balance provides a good overview of account balances and assists in day to day account analysis. Furthermore, a trial balance would assist audit procedures. 11 Village of Port Burwell �o g .../3 We recommend that if the Village decides not to change its software program, it obtain software or customize the current software program to enable the system to print a trial balance report. 6. Long-term Liabilities The 1994 financial statements reflect $162,788 of net long-term liabilities. The Village increased its debt load by a further $73,134 in January to finance part of the unfinanced capital outlay outstanding at December 31, 1994. Long-term financing is a valuable tool in helping a municipality fund large important projects that are too costly to fund with current revenues. However, future principle and interest payments on long-term debt must be paid from current operations. In 1995, estimated principle and interest payments will amount to about $69,000. It is your responsibility to ensure the debt you take on today does not financially strap future operations. To assist in long-term cash flow planning, the municipality should have a capital financing policy that establishes yearly debt limitations, the type of projects that are to be funded using long-term debt, the amount of ongoing maintenance and capital purchases that should be paid using current revenues etc. We recommend the Village develop a capital financing policy to guide capital operations and to help prevent obtaining an unmanageable debt load. 7. Development Charges In 1994 there were no development charges received. Furthermore, there is no reserve fund built up from prior year development charges. We recommend the Village review this area to establish firm policies on development charges and to ensure funds received are allocated directly to a reserve fund. Per discussions with Mr. Free, it is our understanding that this recommendation has already been implemented in 1995. 8. Ontario Home Ownership Program (OHRP). The municipality is responsible for the administration of OHRP in the Village. After review of the OHRP files, it appears that this area has been poorly administered in the past. Seven outstanding loans are currently on file and only one payment was received in 1994. Many accounts have not made payments for a few years. Poor past administration of these accounts now makes collectability of outstanding loans questionable. We recommend the Village take action to clean up its OHRP accounts and ensure outstanding accounts are monitored on an ongoing basis. fik Village of Port Burwell 1),‘;‘,- , ..../4 ro� A. V 9. Accounting for Prior Auditors' Lawsuit As discussed in the notes to the financial statements, the deficit of the Village at the end of 1994 does not include any provision for the lawsuit you are involved in with your prior Auditors. A more conservative approach would have been to set up a payable or specific reserve in 1994 to cover anticipated legal fees. Recording some of the expense in 1994 better matches the costs to the period the claim took place. Any court related payments will now harm the financial performance of future years that had nothing to do with the lawsuit. We recommend, if problems such as the one described above arise again, a more conservative accounting approach be taken in which a reasonable reserve is set up in the year the problem arises. This reserve should cover potential settlement cost and related professional fees. 10. Ontario Clean Water Agency (OCWA) The Village is currently in dispute with OCWA concerning 1994 sewer precepts. We understand that you have forwarded documentation to OCWA and had meetings and telephone conversations trying to resolve this issue, however, little progress has been made. We believe it is important to get this dispute resolved soon and in a mutually amicable manner. Not finalizing a settlement with OCWA makes it difficult to establish, and then meet next year's budget. As well, OCWA provides an essential service to the Village and it is important to maintain good working relationships with a supplier of this nature. We would like you to consider the benefits of implementing the recommendations and welcome the opportunity to discuss them further with you. Please note that this letter does not necessarily disclose all weaknesses and inefficiencies in your system of internal control. The primary objective of an audit is to express an opinion on the financial statements. To meet this objective, we review your system of internal control to establish the extent to which we can reply on the system in designing our audit procedures. However, this review cannot be expected to disclose all matters which a special review of the internal control of your Village might identify. Thank you and your staff for the cooperation and assistance received during this audit. Yours very truly, REDFERN, MORE & CO., 47.‘ —761/ Brian Budarick, C.A. '•Off1°RTgVg THE CORPORATION OF THE , *. . ,_. VILLAGE OF PORT BURWELL P. O. Box 10, Port Burwell, Ontario NO) ITO telephone (519) 874-4343 • fax (519) 874-4948 '-itsillwir4251:111111); PORTUS REFUG‘OM COPY May 23, 1995 • ",: REDFERN, MORE & CO. 22 Harvey Street P.O. Box 247 Tillsonburg, Ontario N4G 4H5 Gentlemen: In connection with your examination of the Consolidated Financial Statement of The Corporation of the Village of Port Burwell for the year ended December 31, 1994, we represent, to the best of our knowledge and belief, the following: A. Financial statements and financial records 1. As members of management of the Village, we understand that the purpose of your examination of our financial statements is to express an opinion thereon and that part of your examination involves selectiv9iesting of account balances and transactions which have been limited to those which you considered necessary in the circumstances. We also understand that the prevention and detection of error and fraud are primarily our responsibility and maziy not necessarily be detected by you even if they are material in amount. 2. As members of management of the Village, we are responsible for the preparation of the financial statements in accordance with generally accepted accounting principles applied on a basis consistent with that of the preceding year. 3. The significant accounting policies adopted in the preparation of the financial statements are fully and fairly described in the financial statements. 4. We have made available to you all financial records and related data. 5. There were no material transactions during the year that have not been properly reflected in the accounts. 6. As members of the Village, we believe that the Village has a system of internal control adequate to permit the preparation of accurate financial statements in accordance with generally accepted accounting principles. ../2 Redfern, More & Co. - 2 - May 23, 1995 B. Investments 1. All investments which are owned by the Village are recorded in the accounts. 2. The Village has good title to all investments recorded in the accounts and these securities are free from hypothecation. 3. Investments are valued at lower of cost and market determined on the aggregate basis. 4. Appropriate loss provisions have been provided in the accounts, when the investments have declined by a significant amount below their previous carrying value. 5. All income earned for the year on these securities has been recorded in the accounts. C. Accounts and Taxes receivable 1. Accounts and taxes receivable are correctly described in the accounts and represent valid claims as at the year end, against the debtors indicated. 2. All services and taxes rendered prior to the year end have been recorded as revenue of that year. 3. The accounts and taxes receivable are free from hypothecation or assignment. 4. Adequate allowance has been made for any losses from uncollectible accounts, costs or expenses which may be incurred with respect to services rendered prior to the year end. D. Liabilities 1. All liabilities incurred by the Village at the year end have been recorded in the accounts or disclosed to you (including such items as, purchases, salaries, wages and commissions, employee benefits (including pension costs), professional services, etc, and long-term debt and lease obligations). 2. At the year end there were no contingent liabilities (a contingent liability is an obligation that may arise depending on the resolution of a continency, e.g. matters in dispute and all claims which are outstanding and possible claims have been disclosed to you, whether or not such claims have been discussed with our lawyers) exept those described in the notes to the financial statement. Redfern, More & Co. - 3 - May 23, 1995 3. At the year end, the Village had no unusual commitments or contractual obligations of any sort which were not in the ordinary course of business and which might have an adverse effect upon the Village (e.g. contracts or purchase agreements above market price; repurchase or other agreements not in the ordinary course of business; material commitments for the purchase of capital assets; significant foreign exchange commitments; open balances on letters or credit; purchase commitments for inventory quantities in excess of normal requirements or at prices in excess of the prevailing market prices; losses from fulfilment of, or inability to fulfil, sales commitments, etc.). E. Pension cost, assets and obligations 1. All pension plans (as defined in the CICA Handbook Section 3460) of the company and the provisions of each plan have been fully disclosed to you. 2. There was no unfunded pension liability as at the year end. F. Consolidated accounts and equity-accounted investments 1. All significant interorganization transactions have been disclosed to you and properly eliminated in the consolidated financial statements. G. General 1. The minute books presented to you contain complete and authentic minutes of all Council and Board meetings held throughout the year to the most recent meeting. 2. No irregularities or shortages have occurred and nothing has come to light which might reflect upon the honesty or integrity of any employee, agent or officer of the Village. 3. We have disclosed to you, and the Village has compiled with, all aspects of contractual agreements that would have a material effect to the financial statements in the event of non-compliance including all covenants, conditions or other requirements of all outstanding debt. 4. There have been no communications from regulatory agencies concerning non-compliance with laws or regulations which could have a material effect on the financial statements. 5. Our present plans and intentions are appropriately reflected by the carrying value and classification of the Village's assets and liabilities. ../4 Redfern, More & Co. - 4 - May 23, 1995 L. Events subsequent to the year end No events have occurred as of the date of this letter which are of such significance as to require adjustment to or disclosure in the financial statements. David Free Date Suzanna Mantell ���F PORT,,_ PTHE CORPORATION OF THE S♦S VILLAGE OF PORT BURWELL P. O. Box 10, Port Burwell, Ontario NOJ ITO C telephone (519) 874-4343 • fax (519) 874-4948 PORTUS REFUGIUM MEMO Date: December 16, 1994 To: Council From: David Free Re: Statement of Council Remuneration & Expenses Council Subject to Section 247 of the Municipal Act, c.M45 R.S.O. 1990 as amended, I hereby provide to council an itemized statement of each members' remuneration and expenses for your review. Remuneration Expenses Total Tom Nesbitt, Reeve $ 3,570.00 $ 106.81 $3,676.81 Ed Epple, Councillor $ 2,423.25 $2,423.25 Gord Loucks, Councillor $ 2,716.75 $2,716.75 Cindy ARM, Councillor $ 3,047.00 $3,047.00 Jim Hevenor, Councillor $2,973.50 $ 191.97 $3,165.47 Remuneration and expenses were paid under the authority of By-Law 92-06 and Sections 242 and 243 of the Municipal Act, c.M45 R.S.O. 1990 as amended. •O'-ree David R. Free, CET, AMCT(A) • Administrator/Clerk-Treasurer