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HomeMy WebLinkAboutFinancial Statements 1993 Chartered Accountants Canadian Member Firm of Doane Raymond Grant Thornton International Township of Bayham 1993 Financial Report TOWNSHIP OF BAYHAM 1993 FINANCIAL REPORT INDEX PAGE Township of Bayham Auditors' Report Consolidated Statement of Operations 1A-1 B Consolidated Balance Sheet 2 Notes to the Consolidated Financial Statements 3A-3F Township of Bayham -Trust Funds Auditors' Report Statement of Continuity 4 Balance Sheet 4 Notes to the Financial Statements 5 Doane Raymond T Doane Raymond Chartered Accountants Canadian Member Firm of Grant Thornton International Auditors' Report To the Members of Council, Inhabitants and Ratepayers of the Corporation of the Township of Bayham We have audited the consolidated balance sheet of the Corporation of the Township of Bayham as at December 31, 1993 and the consolidated statement of operations for the year then ended. These financial statements are the responsibility of the Township'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 Township as at December 31, 1993 and the results of its operations for the year then ended in accordance with the accounting principles disclosed in note 1 to the financial statements. Chartered Accountants Fort Erie, Ontario April 27, 1994 121 Garrison Road Fort Erie Ontario 12A 6G6 Tel: (905)871-0932 Fax: (905)871-9325 1A TOWNSHIP OF BAYHAM CONSOLJDATED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1993 Budget Actual Actual 1993 1993 1992 SOURCES OF FINANCING: $ $ $ Taxation and user charges Residential and farm taxation 2,239,991 2,266,175 2,341,012 Commercial, industrial and business taxation 408,366 412,172 312,618 Taxation from other governments 4,200 6,819 4,157 User charges 88,722 123,306 120,619 Grants Province of Ontario 607,057 602,183 533,860 Other Investment income, penalties and interest on taxes 68,000 74,440 86,362 Other 2,178 20,378 24,503 Deduct: Amounts received or receivable for County and school boards (note 2) (1,728,641) (1,739,981) (1,714,625) Proceeds from the issue of long term liabilities 11,690 4,063 MUNICIPAL FUND BALANCES AT THE BEGINNING OF THE YEAR (note 7) To be used to offset taxation 37,457 100,072 104,451 Capital operations not yet permanently financed (2,552) (2,552) Total financing available during the year 1,736,468 1,867,075 1,812,957 The accompanying notes are an integral part of this financial statement Doane Raymond T 1B TOWNSHIP OF BAYHAM CONSOLIDATED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1993 Budget Actual Actual 1993 1993 1992 APPLIED TO: $ $ $ Current operations (note 9) General government 297,900 312,198 279,369 Protection to persons and property 134,265 139,612 130,533 Transportation services 438,264 468,114 391,087 Environmental services 350,683 340,637 380,709 Health services 22,000 21,859 20,754 Social and family services 500 250 250 Recreation and cultural services 43,300 49,344 51,983 Planning and development 38,418 70,485 54,943 1,325,330 1,402,499 1,309,628 Capital General government 12,000 10,803 13,186 Protection to persons and property 12,400 4,982 25,077 Transportation services 347,000 437,673 291,138 Environmental services 14,269 2,160 Recreation and cultural services 1,629 Planning and development 24,738 33,423 5,348 396,138 502,779 336,909 Net appropriations to reserves and reserve funds (note 8) 15,000 6,837 68,900 MUNICIPAL FUND BALANCES AT THE END OF THE YEAR (note 7) To be used to offset (or to be recovered from) taxation (43,795) 100,072 Capital operations not yet permanently financed (1,245) (2,552) Total applications during the year 1,736,468 1,867,075 1,812,957 The accompanying notes are an integral part of this financial statement Doane Raymond T 2 TOWNSHIP OF BAYHAM CONSOUDATED BALANCE SHEET AS AT DECEMBER 31, 1993 ASSETS 1993 1992 Unrestricted $ $ Cash and term deposit 149,336 94,539 Taxes receivable 367,882 463,245 Accounts receivable 318,245 286,386 Other current assets 7,670 7,765 843,133 851,935 Restricted Cash 42,070 49,325 Due from (to) revenue fund 1,000 (13,092) 43,070 36,233 Capital outlay financed by long term liabilities and to be recovered in future years (note 1(b)(w)) 9,813 9,133 896,016 897,301 LIABILITIES Temporary loans 135,000 Accounts payable and accrued liabilities 142,213 143,954 Due to reserve funds 1,000 Other current liabilities 560 1,061 278,773 145,015 Net long term liabilities (note 6) 9,813 9,133 288,586 154,148 FUND BALANCES AT THE END OF THE YEAR To be used to offset (or to be recovered from) taxation (note 7) (43,795) 100,072 Capital operations not yet permanently financed (note 7) (1,245) (2,552) Reserves (note 8) 609,400 609,400 Reserve funds (note 8) 43,070 36,233 607,430 743,153 896,016 897,301 The accompanying notes are an integral part of this financial statement Doane Raymond$ 3A TOWNSHIP OF BAYHAM NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1993 1. Accounting Policies The consolidated financial statements of the Township 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 judgements. (a) Basis of Consolidation () These consolidated statements reflect the assets, liabilities, sources of financing and expenditures of the revenue fund, capital fund, reserve funds and reserves and includes the activities of all committees of council and the following boards which are under the control of council: (1) Eden Community Centre-Board (2) Bayham Recreation, Parks and Straffordville Community Centre Board (3) Bayham West Cemetery Board (4) Calton Cemetery Board (5) Claus Cemetery Board (6) Dobbie Cemetery Board (7) Eden Cemetery Board (8) Edison Pioneer Cemetery Board (9) Firby Cemetery Board (10) Guysboro Cemetery Board (11) Light Cemetery Board (12) Old Port Burwell Baptist Cemetery Board (13) Smuck Cemetery Board (14) Straffordville Cemetery Board All interfund assets and liabilities and sources of financing and expenditures have been eliminated. (i) Non-Consolidated Entities There are no non-consolidated entities. (iii) Accounting for County and School Board Transactions The taxation, other revenues, 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'). (v) Trust funds and their related operations administered by the municipality are not consolidated, but are reported separately on the Trust Funds Statement of Continuity and Balance Sheet. - Doane Raymond T 3B TOWNSHIP OF BAYHAM NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1993 (b) 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 periods in which they are paid. The principal and interest charges are not accrued for the 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. (i) Fixed Assets The historical cost and accumulated depreciation for fixed assets are not recorded for municipal purposes. Fixed assets are reported as an expenditure on the Consolidated Statement of Operations in the year of acquisition. (iv) 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. Operations of School Boards and the County of Elgin Further to note 1(a)(iii),the taxation, other revenues, expenditures and overlevies (underlevies) of the school boards and the County of Elgin are comprised of the following: School Boards County $ $ Taxation 1,277,911 462,070 Requisitions 1,277,910 462,073 Overlevies (underlevies) for the year 1 (3) Overlevies (underlevies) at the beginning of the year (5) 1 Underlevies at the end of the year (4) (2) 3. Trust Funds Trust funds administered by the municipality amounting to$ 144,160(1992$138,531) have not been included in the Consolidated Balance Sheet nor have their operations been included in the Consolidated Statement of Operations. Doane Raymond T 3C TOWNSHIP OF BAYHAM NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1993 4. Pension Agreements The municipality makes contributions to the Ontario Municipal Employees Retirement Fund(OMERS), which is a multi-employer plan, on behalf of 12 members of its staff. The plan is a defined benefit plan which specifies the amount of the retirement benefit to be received by the employees based on the length of service and rates of pay. The amount contributed to OMERS for 1993 was $ 20,203 (1992 $ 19,997) for current service and is included as an expenditure on the Consolidated Statement of Operations. 5. Liability for 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. The liability for these accumulated days, to the extent that they have vested and could be taken in cash by an employee on terminating, amounted to $46,629 (1992 $ 43,520) at the end of the year. No provision has been made for this liability. There are no anticipated payments over the next five years to the employees who are eligible to retire. 6. Net Long Term Liabilities 1993 1992 (a) The balance of the net long term liabilities reported on the Consolidated Balance Sheet is made up of the following: • Total long term liabilities incurred by the municipality and outstanding at the end of the year amount to $ 102,915 $ 82,764 • Of the long term liabilities shown above, the responsibility for payment of principal and interest charges for tile drainage loans has been assumed by individuals. At the end of the year, the outstanding principal amount of this liability is (93,102) (73,631) • Net long term liabilities at the end of the year $ 9,813 $ 9,133 Doane Raymond T 3D TOWNSHIP OF BAYHAM NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1993 (b) Of the net long term liabilities reported in (a) of this note, $ 9,813 in principal payments are payable from 1994 to 1998. All of these payments are recoverable from benefitting landowners. (c) The long term liabilities in (a) issued in the name of the municipality have received approval of the Ontario Municipal Board for those approved on or before December 31, 1992. Those approved after January 1, 1993 have been approved by by-law. The annual principal and interest payments required to service these liabilities are within the annual debt repayment limit prescribed by the Ministry of Municipal Affairs. (d) The municipality is contingently liable for long term liabilities with respect to tile drainage loans. The total amount outstanding as at December 31, 1993 is$ 93,102 (1992 $ 73,631) and is not recorded on the Consolidated Balance Sheet. 7. Municipal Fund Balances at the end of the year (a) The balances on the Consolidated Statement of Operations of municipal equity (or deficit) of $ (45,040) (1992 $ 97,520) at the end of the year are comprised of the following: 1993 1992 $ $ • for general reduction (increase) of taxation (86,075) 37,457 • for benefitting landowners related to special charges and special areas (8,783) 12,023 • Cemetery Boards accumulated net revenue 48,861 46,483 • Recreation and Community Service Boards accumulated net revenue 2,202 4,109 (43,795) 100,072 • acquisition of fixed assets to be financed from the proceeds of long term liabilities (1,245) (2,552) (45,040) 97,520 (b) Approval of the Ontario Municipal Board has been obtained for the pending issue of long term liabilities and commitments to be financed by revenues beyond the term of council and approved on or before December 31, 1992. Those approved after January 1, 1993 have been approved by by-law. The principal and interest payments required to service these pending issues and commitments are within the debt repayment limit prescribed by the Ministry of Municipal Affairs. Doane Raymond T 3E TOWNSHIP OF BAYHAM NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1993 8. Reserves and Reserve Funds The total balances of reserves and reserve funds of$ 652,470 (1992 $ 645,633) is made up of the following: 1993 1992 $ $ Reserves set aside for specific purpose by council • for fire capital expenditure 60,000 60,000 • for acquisition of fixed assets 199,400 199,400 • for working capital 350,000 350,000 Total reserves 609,400 609,400 Reserve funds set aside for specific purpose by legislation, regulation or agreement • for Eden improvements 10,938 10,888 • for parks and recreation purposes 32,132 25,345 Total reserve funds 43,070 36,233 Total 652,470 645,633 9. Charges for Net Long Term Liabilities Total charges for the year for net long term liabilities which are reported on the Consolidated Statement of Operations are as follows: 1993 1992 $ $ Principal payments 3,384 5,717 Interest 984 1,616 4,368 7,333 The charges for long term liabilities assumed by individuals in the case of tile drainage loans are not reflected in these statements. 10. 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, as the amount was not significant in relationship to the total municipal fund balances at the end of the year on the Consolidated Statement of Operations. Doane Raymond 76 3F TOWNSHIP OF BAYHAM NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1993 11. Contractual Obligation - Ministry of the Environment In accordance with a service agreement entered into by the municipality with the Ministry of the Environment,the existing water system in a small portion of the municipality is owned and operated by the Ministry. The municipality is obligated to meet all operating costs and repay the long term liabilities related to this project. Included in the Consolidated Statement of Operations are the 1993 charges from the Ministry - water$ 1,196. The Consolidated Balance Sheet does not reflect any assets or liabilities pertaining to the water system except to the extent of service charges due to the Ministry. Information received from the Ministry as at March 31, 1993, indicates the following: Accumulated net 1993 debt Total outstanding surplus (deficit) charges long term liabilities $ $ $ Water system 135 115 1,406 The operating deficit and long term liabilities indicated above are not reflected in the accompanying financial statements. 12. 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 agreements 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 Township of Bayham the target amount for each year is $ 5,556, and the amount deferred is $ 1,389. Doane Raymond T Doane Raymond Chartered Accountants Canadian Member Firm of Grant Thornton International Auditors' Report To the Members of Council, Inhabitants and Ratepayers of the Corporation of the Township of Bayham We have audited the balance sheet of the trust funds of the Corporation of the Township of Bayham as at December 31, 1993 and the statement of continuity of trust funds for the year then ended. These financial statements are the responsibility of the Township'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 trust funds of the Township as at December 31, 1993 and the continuity of trust funds for the year then ended in accordance with the accounting principles disclosed in note 1 to the financial statements. Chartered Accountants Fort Erie, Ontario April 27, 1994 121 Garrison Road Fort Erie Ontario L2A 6G6 Tel: (905) 871-0932 Fax: (905) 871-9325 4 TOWNSHIP OF BAYHAM TRUST FUNDS STATEMENT OF CONTINUITY For the year ended December 31, 1993 Cemeteries Care and O.H.R.P. Total Maintenance Fund Funds $ $ $ Balance at the beginning of the year 138,531 113,314 25,217 Receipts From cemetery boards 6,624 6,624 Interest earned 6,895 5,869 1,026 13,519 12,493 1,026 Expenditures To cemetery boards for maintenance 5,568 5,568 Loans forgiven 2,322 2,322 7,890 5,568 2,322 Balance at the end of the year 144,160 12� 23,921 BALANCE SHEET as at December 31, 1993 Cemeteries Care and O.H.R.P. Total Maintenance Fund Funds $ $ $ Assets Cash and term deposits 123,867 108,890 14,977 Receivables 2,208 2,208 Investments, at cost Township of Bayham debentures 9,141 9,141 Long term loans receivable 8,944 8,944 144,160 120,239 23,921 Liabilities Balance - trust capital 144,160 120,239 23,921 The accompanying notes are an integral part of this financial statement Doane Raymond T 5 TOWNSHIP OF BAYHAM TRUST FUNDS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1993 1. Accounting Policies Basis of Accounting Capital receipts and income are reported on the cash basis of accounting. Expenditures are reported on the cash basis of accounting with the exception of administrative expenses which are reported on the accrual basis of accounting, which recognizes expenditures as they are incurred and measurable as a result of the receipt of goods or services and the creation of a legal obligation to pay. 2. Investments The total for investments by the trust funds of $ 9,141 (1992 $ 111,764) reported on the Balance Sheet at cost, have a market value of $ 9,141 (1992 $ 111,764) at the end of the year. 3. Ontario Home Renewal Program The Ontario Home Renewal Program 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. Ontario Home Renewal Program loans receivable at December 31, 1993 comprise repayable loans of$ 8,395 (1992$ 10,115) and forgivable loans of$ 549 (1992$2,871). Loan forgiveness is earned and recorded at a rate of up to$ 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 become due and payable by the homeowner. Doane Raymond T