HomeMy WebLinkAboutFinancial Statements - 2022THE CORPORATION OF THE
MUNICIPALITY OF BAYHAM
Consolidated Financial Statements
December 31, 2022
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Consolidated Financial Statements
Year Ended December 31, 2022
Table of Contents PAGE
Management Responsibility for Financial Reporting
Independent Auditors' Report 2-3
Consolidated Statement of Financial Position
Consolidated Statement of Operations and Accumulated Surplus
Consolidated Statement of Changes in Net Financial Assets 6
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements 8 - 22
Consolidated Schedule of Segment Disclosure 23 - 24
MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING
The accompanying consolidated financial statements are the responsibility of the management of The
Corporation of the Municipality of Bayham and have been prepared in accordance with Canadian
accounting standards for public sector entities.
These consolidated financial statements include:
* Independent Auditors' report
* Consolidated Statement of Financial Position
* Consolidated Statement of Operations and Accumulated Surplus
■ Consolidated Statement of Change in Net Financial Assets
0 Consolidated Statement of Cash Flows
* Notes to the Consolidated Financial Statements
* Consolidated Schedule of Segment Disclosure
The Chief Administrative Officer and the Treasurer are responsible for ensuring that management fulfills
its responsibility for financial reporting and is ultimately responsible for reviewing the consolidated
financial statements before they are submitted to Council for approval.
The integrity and reliability of The Corporation of the Municipality of Bayham reporting systems are
achieved through the use of formal policies and procedures, the careful selection of employees and an
appropriate division of responsibilities. These systems are designed to provide reasonable assurance that
the financial information is reliable and accurate.
The consolidated financial statements have been audited on behalf of the Members of Council,
Inhabitants and Ratepayers of The Corporation of the Municipality of Bayham by Graham Scott Enns
LLP in accordance with Canadian generally accepted auditing standards.
M h hayer
ChieM dministrative Officer
Straffordville, Ontario
May 18, 2023
Mr. Lor es
"Treasurer
198� I GRAHAM SCOTTENNs LLP
CHARTERED PROFESSIONAL ACCOUNTANTS
P.519-633-0700 • F.519-633-7009 P.519-773-9265 • F.519-773-9683
450 Sunset Drive, St. Thomas, ON N5R 5V1 25 John Street South, Aylmer, ON N51-1 20
www.grahamscottenns.com
INDEPENDENT AUDITORS' REPORT
To the Members of Council, Inhabitants and Ratepayers of The Corporation of the Municipality of Bayham:
Opinion
We have audited the consolidated financial statements of The Corporation of the Municipality of Bayham,
which comprise the consolidated statement of financial position as at December 31, 2022, and the consolidated
statement of operations and accumulated surplus, consolidated statement of changes in net financial assets and
consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies.
In our opinion, the Municipality's consolidated financial statements present fairly, in all material respects, the
financial position of the Municipality as at December 31, 2022, and the results of its operations and its cash flows
for the year then ended in accordance with Canadian accounting standards for public sector entities.
Basis for Opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities
under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Municipality in accordance with the ethical
requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled
our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial
Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in
accordance with Canadian accounting standards for public sector entities, and for such internal control as
management determines is necessary to enable the preparation of consolidated financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Municipality's
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Municipality or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Municipality's financial reporting process.
Auditors' Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
GRAHAM SCOTTENNs LLP
CHARTERED PROFESSIONAL ACCOUNTANTS
P. 519-633-0700 • F. 519-633-7009 P. 519-773-9265 • F. 519-773-9683
450 Sunset Drive, St. Thomas, ON N5R 5V1 25 John Street South, Aylmer, ON N5H 2C1
www.grahamscottenns.com
INDEPENDENT AUDITORS' REPORT (CONTINUED)
Auditors' Responsibilities for the Audit of the Consolidated Financial Statements (Continued)
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
* Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Municipality's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Municipality's ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures
in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future
events or conditions may cause the Municipality to cease to continue as a going concern.
* Evaluate the overall presentation, structure and content of the consolidated financial statements, including
the disclosures, and whether the consolidated financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
St. Thomas, Ontario
May 18, 2023
571� See& 5444 .,!Z;v
CHARTERED PROFESSIONAL ACCOUNTANTS
Licensed Public Accountants
- 5 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Consolidated Statement of Financial Position
As At December 31, 2022
ARCF.TC
FINANCIAL ASSETS
Cash
Investments (Note 2)
Taxes receivable (Note 3)
Accounts receivable (Mote 4)
LIABILITIES
Deferred revenue - obligatory reserve funds (Note 9)
Accounts payable and accrued liabilities
Net long-term liabilities (Vote 6)
NET FINANCIAL ASSETS
NON -FINANCIAL ASSETS
Tangible capital assets (Note 5)
Prepaid expenses and inventory
ACCUMULATED SURPLUS (NOTE 7)
2022
2021
S
3,182,072
4,090,351
6,266,372
3,662,849
594,691
901,928
1,244,366
1334,118
11,287,501 9,789,246
805,318
694,326
1,373,683
1,462,605
4,609 816
4,838,322
6,788,817
6,995,253
4,498,684
2,793,993
58,690,193
58,830,243
143,612
81.507
58,833,805
63,332,489
See accompanying notes to the consolidated financial statements.
-4-
58,911,750
61 705
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Consolidated Statement of Operations and Accumulated Surplus
Year Ended December 31, 2022
REVENUES
Property taxation
Taxation from other governments
User charges
Transfer payments
Federal
Provincial
Other municipalities
Investment income
Penalties and interest on taxes
Recoveries from benefiting landowners
Other
Total Revenues
EXPENSES
General government
Protection to persons and property
Transportation services
Environmental services
Health services
Social and family services
Recreation and cultural services
Planning and development
Loss (gain) on disposal of tangible capital assets
Total Expenses (Note 14)
ANNUAL SURPLUS
ACCUMULATED SURPLUS, BEGINNING OF
YEAR
ACCUMULATED SURPLUS, END OF
YEAR (NOTE 7)
Budget
Actual
Actual
(Note 11)
2022
2021
_S
5,044,357
5,139,135
4,754,473
175,049
175,049
175,049
3,026,458
3,155,337
2,957,219
4,667,600
543,153
335,302
1,653,179
1,634,805
1,302,207
471,879
466,379
444,594
111,975
182,117
77,688
91,000
91,422
(33,831)
107,000
100,369
362,584
99.292
147,165
106.020
15,447,789
11,634,931
10.481,305
1,201,717
1,256,610
1,151,707
1,934,511
1,870,154
1,888,860
3,201,397
3,375,512
2,725,065
3,078,522
3,151,198
2,846,211
42,582
41,594
30,289
7,000
2,000
-
357,876
401,588
307,365
266,210
276,792
239,522
1367,2631
16,635
10.08E815 10,008,185 9,205,654
5,357,974 1,626,746 1,275,651
61,705,743 61,705,743 60.430,092
67,063.717 63,332,489 61,705,743
See accompanying notes to the consolidated financial statements.
- 5 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Consolidated Statement of Changes in Net Financial Assets
Year Ended December 31, 2022
ANNUAL SURPLUS
Budget
Actual
Actual
(Note 11)
2022
2021
-L-
S
5,357,974 1,626,746 1,275,651
Acquisition of tangible capital assets
(2,253,110)
(2,253,110)
(1,628,712)
Amortization of tangible capital assets
2,243,700
2,243,700
1,915,323
Proceeds on disposal of tangible capital assets
-
516,723
-
Change in prepaid expenses and inventory
-
(62,105)
(31,200)
Loss (gain) on disposal of tangible capital assets
j367,263)
16.627
CHANGE IN NET FINANCIAL ASSETS
5,348,564
1,704,691
1,547,689
NET FINANCIAL ASSETS, BEGINNING OF YEAR
2,793.993
2,793,993
1.246.304
NET FINANCIAL ASSETS, END OF YEAR
8.142.557
4,498,684
2.793.993
See accompanying notes to the consolidated financial statements.
-6-
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Consolidated Statement of Cash Flows
Year Ended December 31, 2022
2022 2021
OPERATING ACTIVITIES
Annual surplus 1,626,746 1,275,651
Add (deduct) items not involving cash:
Amortization of tangible capital assets 2,243,700 1,915,323
Loss (gain) on disposal of tangible capital assets (367,263) 16,627
3,503,183 3,207,601
Change in non -cash items related to operations (Note 14[b]) 156,954 1,210368
3,660,137 4,418,369
CAPITAL
Acquisition of tangible capital assets (2,253,110) (1,628,712)
Proceeds on disposal of tangible capital assets 516,723
(1,736,387) (1,628,712)
INVESTING
Purchase of investments (2,500,000)
Investment income reinvested (103,523) (59,126)
(2,603,523) (59,126)
FINANCING
Long-term debt repayment (228,506) (222,518)
NET CHANGE IN CASH (908,279) 2,508,013
CASH, BEGINNING OF THE YEAR 4,090,351 1,582,338
CASH, END OF THE YEAR 3,182,072 4,090,351
See accompanying notes to the consolidated financial statements.
-7-
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2022
The Corporation of the Municipality of Bayham (the "Municipality") is a municipality in the Province of
Ontario. It conducts its operations guided by the provisions of provincial statutes such as the Municipal
Act, Municipal Affairs Act and related legislation.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements of the Municipality are prepared by management in accordance
with Canadian accounting standards for public sector entities. Significant aspects of the accounting
policies adopted by the Municipality are as follows:
Reporting Entity
The consolidated financial statements include the assets, liabilities, revenues and expenses of the
reporting entity. The reporting entity is comprised of all organizations, committees and local boards
accountable for the administration of their financial affairs and resources to the Municipality and
which are 100% owned or controlled by the Municipality.
Consolidated Entities
The following local boards are consolidated:
- Various Cemetery Boards
Inter -departmental and inter -organizational transactions and balances between these organizations
are eliminated.
Proportionate Consolidation
The Elgin Area Primary Water Board and Port Burwell Water Board have been consolidated on a
proportionate basis. The Water Boards are proportionately consolidated based upon the water flow
used by our Municipality in proportion to the entire flows provided by the joint boards.
Accounting for School Board Transactions
Although the Municipality collects taxation on behalf of the School Boards, the taxation, other
revenues, expenses, assets and liabilities with respect to the operations of the school boards are not
reflected in these statements.
Trust Funds
Trust funds and their related operations administered by the Municipality are not included in these
consolidated financial statements.
-8-
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Basis of Accounting
The consolidated financial statements are prepared using the accrual basis of accounting. The accrual
basis of accounting records revenue as it is earned and measurable. Expenses are recognized as they
are incurred and measurable based upon receipt of goods or services and/or the creation of a legal
obligation to pay.
Deferred Revenue
Government transfers, contributions and other amounts are received from third parties pursuant to
legislation, regulation or agreement and may only be used in the conduct of certain programs, in the
completion of specific work. In addition, certain user charges and fees which have been collected but
for which the related services have yet to be performed. Revenue is recognized in the period when
the related expense are incurred, services preformed.
Use of Estimates
The preparation of consolidated financial statements in conformity with Canadian accounting
standards for public sector entities requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements, and the reported amounts of revenues and expenses during the
period. In addition, the Municipality's implementation of the Public Sector Accounting Handbook
PS3150 has required management to make estimates of historical cost and useful lives of tangible
capital assets. These estimates and assumptions are based on the best information and judgment and
may differ significantly from actual results.
Government Transfers
Government transfers are recognized in the consolidated financial statements as revenues in the
financial period in which events giving rise to the transfer occur, providing the transfers are
authorized, any eligibility criteria have been met including performance and return requirements, and
reasonable estimates of the amounts can be determined. Any amount received but restricted is
recorded as deferred revenue in accordance with Section 3100 of the Public Sector Accounting
Handbook and recognized as revenue in the period in which the resources are used for the purpose
specified.
In addition, the Municipality periodically receives senior government capital finding in the form of
infrastructure grants and receives ongoing funding from both senior levels of government as a result
of an allocation of the gas tax funds.
-9-
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Non -Financial Assets
Non -financial assets are not available to discharge existing liabilities and are held for use in the
provision of services. They have useful lives extending beyond the current year and are not intended
for sale in the ordinary course of operations. The change in non -financial assets during the year,
together with the excess of revenues over expenses, provides the Change in Net Financial Assets for
the year.
i) Tangible capital assets
Tangible capital assets are recorded at cost which includes all amounts that are directly attributable
to acquisition, construction, development or betterment of the asset. The cost, less residual value, of
the tangible capital assets are amortized on a straight-line basis over their estimated useful lives as
follows:
Building and components
20 to 75 years
Vehicles
5 to 25 years
Machinery and equipment
5 to 27 years
Land improvements
18 to 25 years
Plants and facilities
20 to 75 years
Roads
20 to 60 years
Bridges and other structures
15 to 80 years
Underground and other networks
17 to 100 years
No amortization is charged in the year of acquisition and a full year of amortization is charged in the
year of disposal. Assets under construction are not amortized until the asset is available for
productive use.
ii) Contributions of tangible capital assets
Tangible capital assets received as contributions are recorded at their fair value at the date of receipt
and also are recorded as revenue.
iii) Works of art and cultural and historic assets
Works of art and cultural and historic assets are not recorded as assets in these financial statements.
iv) Interest capitalization
The Municipality does not capitalize interest costs associated with the acquisition or construction of
a tangible capital asset.
v) Leased tangible capital assets
Leases are classified as capital or operating leases. Leases which transfer substantially all of the
benefits and risks incidental to ownership of property are accounted for as capital leases. All other
leases are accounted for as operating leases and the related lease payments are charged to expenses
as incurred.
-10-
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
vi) Inventories of supplies
Inventories of supplies held for consumption are recorded at the lower of cost and replacement cost.
Tax Revenues
In 2022, the Municipality received $5,314,184 (2021 - $4,929,522) in property tax revenues for
municipal purposes. The authority to levy and collect property taxes is established under the
Municipal Act 2001, the Assessment Act, the Education Act, and other legislation.
The amount of the total annual property tax levy is determined each year through Council's approval
of the annual budget. Municipal tax rates are set annually by Council for each class or type of
property, in accordance with legislation and Council -approved policies, in order to raise the revenue
required to meet operating budget requirements. Education tax rates are established by the Province
each year in order to fund costs of education on a Province -wide basis.
Taxation revenues are recorded at the time billings are issued. Additional property tax revenue can
be added throughout the year, related to new properties that become occupied, or that become subject
to property tax, after the return of the annual assessment roll used for billing purposes. The
Municipality may receive supplementary assessment rolls over the course of the year from MPAC
that identify new or omitted assessments. Property taxes for these supplementary/omitted amounts
are then billed according to the approved tax rate for the property class.
Taxation revenues in any year may also be reduced as a result of reductions in assessment value
rising from assessment and/or tax appeals. Each year, an amount is identified to cover the estimated
amount of revenue loss attributable to assessment appeals, tax appeals or other deficiencies in tax
revenue (e.g. uncollectible amounts, write-offs, etc.).
Investments
Investments, consisting of one fund pooled bond securities, are recorded at cost plus accrued interest.
Investment income earned on available funds is reported as revenue in the period earned. When
required by funding government or related Act, investment income earned on deferred revenue is
added to the investment and forms part of the deferred revenue balance.
Employee Benefit Plans
The Municipality accounts for its participation in the Ontario Municipal Employees Retirement
System (OMERS), a multi -employer public sector pension fund, as a defined contribution plan. The
OMERS plan specifies the retirement benefits to be received by the employees based on the length of
service and pay rates. Employee benefits include post employment benefits. Post employment
benefits are subject to actuarial valuations and are accrued in accordance with the projected benefit
method, prorated on service and management's best estimate of salary escalation and retirement ages
of employees. Any actuarial gains and losses related to past service of employees are amortized over
the expected average remaining service period.
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Environmental Provisions and Contaminated Sites
The Municipality may be exposed to litigation or other costs of remediation due to contaminated
properties in it's jurisdiction. A liability for remediation is recognized in the financial statements
when an environmental standard exists, contamination exceeds the standard, the government is
responsible for the remediation and a reasonable estimate of the liability can be made. As at
December 31, 2022 there were no properties that the Municipality was responsible to remedy and as
such no liability has been accrued.
Recent Accounting Pronouncements
PSAB released a standard related to Financial Instruments (PS 3450). The standard applies to all
local governments for fiscal years beginning on or after April 1, 2022. The standard requires that all
financial instruments, which include the One Fund Investments, be reported at fair market value in a
statement of remeasurement gains/losses and to disclose any risks associated with it's financial
instruments.
2. INVESTMENTS
Investments are comprised of the following:
2022
S
Cost Market
One fiznd pooled bond securities 3,720,211 3,238,058
Guaranteed investment certificates 2,546,161 2,546 161
6.266J72 5,784,21{)
2021
Cost Market
3,662,849 3,374,230
3,662,849 3.3 44,230
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2022
3. TAXES RECEIVABLE
Current taxes receivable
Arrears taxes receivable
Penalties and interest
2022
2021
S
$
448,663
593,949
95,424
172,457
50.604
135.522
5® 901.928
The Municipality makes annual estimates and allowances for potential exposure to property tax
appeals, reassessments, environmental and collection issues. Included in the taxes receivable is
approximately $157,000 (2021 - $288,000) of taxes, penalties and interest that is due from one
specific gas pipeline property that was under going various appeals and financial restructuring.
Although the 2022 amount is current, the Municipality's exposure to loss on these balances is
estimated to be between 25% to 30% if it is determined that nothing is recoverable from this
property. At year end, the Municipality made an assessment of the exposure based on current
information and didn't make any significant allowances for these amounts in the taxes receivable
presented on the statement of financial position, but has set aside $78,000 (2021 - $67,000) in the
contingency reserve for any losses should they occur on this or other properties.
4. ACCOUNTS RECEIVABLE
2022 2021
Accounts receivable 510,993 545,679
Government grants and funding 232,884 220,495
Debentures, interest at 2.97%, due 2034 207,757 226,166
Government remittances 292,732 141,778
1 2�� _ 1,134.118
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2022
5. TANGIBLE CAPITAL ASSETS
December 31, 2022
Disposals and
Cost
Opening
Additions
Adjustments
finding
Infrastructure
Linear -Roadways
43,938,108
2,134,483
-
46,072,591
Linear- Water Services
10,317,727
14,372
(5,564)
10,326,535
Linear - Waste Water Services
16,546,027
-
16,546,027
Infrastructure Total
70.801,862
2,148,855
I5,i(w4
72,945,153
General
Land
1,063,805
-
1,063,805
Land Improvements
1,826,468
30,605
-
1,857,073
Buildings
12,053,384
30,179
(222,671)
11,860,892
Machinery and Equipment
4,345,535
150,151
4,495,686
Vehicles
2,702,516
175,666
07,1111
2,780,849
General Total
21,991,708
386,601
(320,004)
22,058,305
Work in Progress
449,601
151,980
{434,a fi)
167,255
Total Cost
_ 9?,?-1 ,i71
1687.436
(759,894)
95,170,713
Accumulated Amortization
Disposals and
Opening
Amortization
Adjustments
Ending
Infrastructure
Linear - Roadways
17,354,512
776,759
-
18,131,271
Linear - Water Services
3,292,685
259,213
(5,564)
3,546,334
Linear - Waste Water Services
3.721,231
201,726
-
3,922,957
Infrastructure Total
24,368A28
1,237.698
(5.5041
25,600,562
General
Land Improvements
973,417
67,318
-
1,040,735
Buildings
5,429,838
296,485
(76,456)
5,649,867
Machinery and Equipment
2,135,108
123,748
2,258,856
Vehicles
1,506.137
518A51
(94.088)
1,930,500
General Total
10,044,500
1.006.002
(170.544)
10,879,958
Total Accumulated Amortization
34.412, 228
2 243 700
Li LL f!i, ;
36,480,520
Net Book Value
Opening
Ending
Infrastructure
Linear - Roadways
26,583,596
27,941,320
Linear - Water Services
7,025,042
6,780,201
Linear - Waste Water Services
12,824,796
12,623,070
46,433,434
47,344,591
General
Land
1,063,805
1,063,805
Land Improvements
853,051
816,338
Buildings
6,623,546
6,211,025
Machinery and Equipment
2,210,427
2,236,830
Vehicles
1,196,379
850,349
11,947,208
11,178,347
Work in Progress
44901
167,255
Total Net Book Value
58,830,243
58,690,193
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2022
5. TANGIBLE CAPITAL ASSETS (CONTINUED)
December 31, 2021
Disposals and
Cost
Opening
Additions
Adjustments
Ending
Infrastructure
Linear - Roadways
42,758,039
1,712,692
(532,623)
43,938,108
Linear - Water Services
10,312,206
11,460
(5,939)
10,317,727
Linear - Waste Water Services
16.546,027
16,546,027
Infrastructure Total
69,616,272
1 724.152
(538.562)
70,801,862
General
Land
1,063,805
-
-
1,063,805
Land Improvements
1,752,889
73,579
1,826,468
Buildings
11,640,255
425,505
(12,376)
12,053,384
Machinery and Equipment
4,345,535
-
-
4,345,535
Vehicles
2.494 937
207,579
2,702,516
General Total
21,297,421
706,663
(12,376)
21,991,708
Work in Progress
1_,251,704
444,383
f 1.1.16.4lk61
449,601
Total Cost
91165.397 397
2,875,198
_LI 7`.)7,.1'.11
93.243.171
Accumulated Amortization
Disposals and
Opening
Amortization
Adjustments
Ending
Infrastructure
Linear -Roadways
17,122,110
752,102
(519,700)
17,354,512
Linear - Water Services
3,038,294
260,330
(5,939)
3,292,68.5
Linear - Waste Water Services
3.519,513
201,726
(8)
3,721,231
InfrastructurcTotal
23.679,917
1,214,158
(525,647)
24,368,428
General
Land Improvements
908,760
64,657
-
973,417
Buildings
5,143,899
294,603
(8,664)
5,429,838
Machinery and Equipment
2,004,049
131,059
-
2,135,108
Vehicles
1.295.291
21 U46
1,506,137
General Total
9,351,999
70L165
(9,664)
10,044,500
Total Accumulated Amortization
33.031,916
1,915.323
4 531.31 E 1
34,412,928
Net Book Value
Opening
Ending
Infrastructure
Linear - Roadways
25,635,929
26,583,596
Linear - Water Services
7,273,912
7,025,042
Linear - Waste Water Services
13,026,514
12,824,796
45,936,355
46,433,434
General
Land
1,063,805
1,063,805
Land Improvements
844,129
853,051
Buildings
6,496,356
6,623,546
Machinery and Equipment
2,341,486
2,210,427
Vehicles
1,199.646
1,196,379
11,945,422
11,947,208
Work in Progress
1,251,704
449,601
Total Net Book Value
59,133. 881
58 830,243
- I.
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2022
6. LONG-TERM LIABILITIES
a) The balance of long-term liabilities reported on the Consolidated Statement of Financial Position
is made up of the following:
TD loan, 2.71 %, repayable in blended monthly payments
of $27,557, due March 2025 (Project Ojibwa)
Consolidated water board debt, interest rates ranging from
1.5% to 3.20%, maturing September 2020 to March
2027
Principal repayments are summarized as follows:
2022 2021
S �
4,553,818 4,758,090
55,998 80.232
.6�409.8�U 4,838.322
Tax
User
Revenue
Charges
Total
2023
209,877
12,349
222,226
2024
215,309
12,613
227,922
2025
4,128,632
12,890
4,141,522
2026
-
13,181
13,181
2027
-
4,965
4,965
Beyond
-
-
Total
4.5�
55.9981
4.609.816
b) All long-term liabilities issued on or before December 31, 1992 have received approval of the
Ontario Municipal Board. Long-term liabilities issued after January 31, 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 and
Housing.
c) Interest expense on long-term liabilities in 2022 amounted to $128,313 (2021 - $134,375).
- If-
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2022
7. ACCUMULATED SURPLUS
The accumulated surplus balance is comprised of current fund, capital fund, balances in reserves and
discretionary reserve funds, unfunded liabilities to be recovered in the future and investment in
tangible capital assets.
SURPLUS
Municipality - current fund
Cemetery boards - current fund
Benefiting landowners - current fund
Invested in tangible capital assets - capital fund
Reserves
Reserve funds
AMOUNTS TO BE RECOVERED
Net long-term debt (Note 6)
ACCUMULATED SURPLUS
2022
S
181,752
(103,001)
58,690,193
5,151,453
4,021,908
2021
182,175
(128,805)
58,830,243
4,411,081
3,24,9,,371
67,942,305 66,544,065
(4,604),X% t4.838.322)
63,332,489 61.705,743
RESERVES AND RESERVE FUNDS CONSIST OF THE FOLLOWING:
Reserves set aside for specific purposes by Council:
for working capital
- for capital purposes
- for waterworks purposes
y for other purposes
Total reserves
Reserve funds set aside for specific purposes by Council:
for water system - consolidated
- for sanitary sewers
- for recreation and cultural service purposes
Total reserve fiends
- l7-
2022 2021
79,528
96,886
923,700
634,527
2,586,474
2,277,698
_1,561,751
1,401.970
5,151,453
4,411,081
166,472
142,446
3,366,957
3,062,226
488.479
44.699
4,021,908 3,249.371
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2022
8. TRUST FUNDS
Trust funds administered by the Municipality amounting to $279,084 (2021 - $273,166) have not
been included in the Consolidated Statement of Financial Position nor have their operations been
included in the Consolidated Statement of Operations.
9. DEFERRED REVENUE - OBLIGATORY RESERVE FUNDS
A requirement of the public sector accounting principles of the Canadian hlstitute of Chartered
Professional Accountants is that obligatory reserve funds be reported as deferred revenue. This
requirement is in place as provincial legislation restricts how these funds may be used and under
certain circumstances these finds may be refunded. The balances in the obligatory reserve funds of
the Municipality are summarized below:
Development charges
Canada Community Building Fund
OCIF
Parkland
10. PENSION AGREEMENTS
2022 2021
S AL
31,217 30,735
481,021 448,657
226,658 154,293
66.422 60.641
805,318 6
The Municipality makes contributions to the Ontario Municipal Employees Retirement Find
(OMERS), which is a multi -employer plan, on behalf 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. Each year, an independent actuary determines the funding status
of OMERS Primary Pension Plan (the Plan) by comparing the actuarial value of invested assets to the
estimated present value of all pension benefits the members have earned to date. The most recent
actuarial valuation of the Plan was conducted Decenber 31, 2022, and the results of this valuation
disclosed actuarial liabilities of $128.8 billion in respect of benefits accrued for service with actuarial
assets at that date of $122.1 billion leaving an actuarial deficit of $6.7 billion.
Since any surpluses or deficits are a joint responsibility of all Ontario municipalities and their
employees, the Municipality does not recognize any share of the OMERS Pension surplus or deficit
in these consolidated financial statements.
The amount contributed to OMERS for 2022 was approximately $185,000 (2021 - $166,000).
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2022
11. BUDGET FIGURES
The operating budget approved by the council of the Municipality for 2022 is reflected on the
consolidated statement of operations. Budget figures have been reclassified for the purposes of these
financial statements to comply with PSAB reporting requirements. These adjustments include reserve
transfers, capital expenditures, amortization and debt financing and repayment.
REVENUES
Property taxation
Taxation from other governments
User charges
Transfer payments:
Federal
Provincial
Other municipalities
Investment income
Penalties and interest on taxes
Recoveries from benefiting landowners
Other
Capital reserve transfers
Total Revenues
EXPENSES
General government
Protection to persons and property
Transportation services
Environmental services
Health services
Social and family services
Recreation and cultural services
Planning and development
Reserve transfers
Capital
Total Expenses
BUDGETED ANNUAL SURPLUS
19-
Approved PSAB
Budget Adjustments Budget
-
5,044,357
-
5,044,357
175,049
175,049
2,290,588
735,870
3,026,458
4,667,600
-
4,667,600
1,626,100
27,079
1,653,179
471,879
-
471,879
28,000
83,975
111,975
91,000
-
91,000
107,000
-
107,000
70,500
28,792
99,292
320,500
(120,500)
-
14,892,573 555.216 15,447,789
1,388,696
(186,979)
1,201,717
1,799,750
134,761
1,934,511
1,778,429
1,422,968
3,201,397
1,997,026
1,081,496
3,078,522
17,500
25,082
42,582
7,000
-
7,000
241,308
116,568
357,876
233,771
32,439
266,210
315,093
(315,093)
-
7.114.000
t.7,1 1 4,000
-
14.892.573 t4.802.7. ) 10,089,815
- 5,357.974 5,357,974
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2022
12. OPERATION OF SCHOOL BOARDS AND THE COUNTY OF ELGIN
During 2022, requisitions were made by the school
municipality to collect property taxes and payments
amounts collected and remitted are summarized below
Taxation and user charges
Share of payments in lieu of taxes
Amounts requisitioned
13. CONTINGENCIES
boards and the County of Elgin requiring the
in lieu of property taxes on their behalf. The
School
Boards County
S
1,509,185 4,933,534
6,379 168,050
1.515.564 5.101.584
As at December 31, 2022, certain legal actions are pending against the Municipality. The final
outcome of the outstanding claims cannot be determined at this time. However, management believes
that ultimate disposition of these matters will not materially exceed the amounts recorded in these
consolidated financial statements.
As at December 31, 2022, the Municipality also has a Writ of Seizure and Sale registered against the
assets of the Elgin Military Museum. Although the Municipality expects no further recoveries from
the assets of the Elgin Military Museum, the Municipality will ensure the Writ of Seizure and Sale is
registered on title indefinitely.
Estimated costs to settle claims are based on available information and projections of estimated
future expenses developed based on the Municipality's historical experience. Claims are reported as
an operating expense in the year of the loss, where the costs are deemed to be likely and can be
reasonable determined. Claim provisions are reported as a liability in the consolidated statement of
financial position.
- 20
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2022
14. SUPPLEMENTARY INFORMATION
[a] Current fund expenses by object:
Salaries, wages and employees benefits
Long-term debt interest
Materials
Contracted services
Amortization
External transfers to others
Loss (gain) on disposal of tangible capital assets
[b] Cash flow information:
Taxes receivable
Accounts receivable
Inventories and prepaid expenses
Accounts payable and accrued liabilities
Deferred revenue -obligatory reserve funds
WE
2022 2021
- -$
2,402,413
2,281,845
128,313
134,375
3,178,542
2,521,529
2,323,131
2,239,214
2,243,700
1,915,323
99,349
96,741
(367,263)
! 16,627
10,008,185 9,205,654
307,237
(110,248)
(62,105)
(88,922)
110,992
156,954
645,395
(26,622)
(31,200)
268,408
354,787
1,210,768
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2022
15. SEGMENTED INFORMATION
The Municipality is a diversified municipal government institution that provides a wide range of
services to its citizens, including fire, roads, sewer and water. For management reporting purposes
the Government's operations and activities are organized and reported by Fund. Funds were created
for the purpose of recording specific activities to attain certain objectives in accordance with special
regulations, restrictions or limitations.
Municipal services are provided by departments and their activities are reported in these finds.
Certain departments that have been separately disclosed in the segmented information, along with the
services they provided, are as follows.
Public Works
The Public Works department is responsible for the delivery of municipal public works services
related to the planning, development and maintenance of roadway systems, the maintenance of
parking and open space, and street lighting.
The Water and Waste Funds
The water and wastewater department provides drinking water to citizens of the municipality, as well
as, collection and treatment of wastewater. This department is responsible for the operation and
maintenance of both systems in accordance with government regulations under the Safe Drinking
Water Act and other pieces of legislation.
Other segments
This segment includes the remaining departments and activities of the Municipality. Some of the
larger activities in this segment include general government, fire, police, public health services,
recreation and cultural services, planning and development and solid waste collection and disposal.
For each reported segment, revenues and expenses represent both amounts that are directly
attributable to the segment and amounts that are allocated on a reasonable basis. Therefore, certain
allocation methodologies are employed in the preparation of segmented financial information. The
General Revenue Fund reports on municipal services that are funded primarily by taxation such as
property and business tax revenues. Taxation and payments -in -lieu of taxes are apportioned to
General Revenue Fund services based on the Fund's net surplus. Certain government transfers,
transfer from other funds, and other revenues have been apportioned based on a percentage of
budgeted expenses.
The accounting policies used in these segments are consistent with those followed in the preparation
of the consolidated financial statements as disclosed in Note 1. For additional information see the
Consolidated Schedule of Segment Disclosure and Schedule of Segment Disclosure.
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Consolidated Schedule of Segment Disclosure
Year Ended December 31, 2022
Water and Public
Waste Funds Works
REVENUE
Other Total
Segments Consolidated
—t—
Taxation - 1,254,550 4,059,634 5,314,184
Sales of service and regulatory fees 2,523,559 55,619 576,159 3,155,337
Government transfer - 475,157 2,169,180 2,644,337
Other 106,926 414,147 521,073
EXPENSES
Salaries, wages and employee benefits
Long-term debt interest
Materials
Contracted services
Amortization
Loss (gain) on disposal of tangible
capital assets
Transfer to others
ANNUAL SURPLUS (DEFICIT)
2.630,485 1,785.326 7,219,120 11,634,931
445,311
739,495
1,217,607
2,402,413
1,899
-
126,414
128,313
850,027
1,281,168
1,047,347
3,178,542
595,331
37,375
1,690,425
2,323,131
628,214
1,317,474
298,012
2,243,700
-
(36,756)
(330,507)
(367,263)
-
-
99,349
99,349
2.520,782 3,338.756 4,148.647 10,008,185
109.703 (1,553,430) 3,070.473 __ 1,626,746
- 23 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Consolidated Schedule of Segment Disclosure
Year Ended December 31, 2021
Water and
Public
Waste Funds
Works
__L_
REVENUE
Other Total
Segments Consolidated
S...
Taxation
-
1,413,084
3,516,438
4,929,522
Sales of service and regulatory fees
2,404,520
39,736
512,963
2,957,219
Government transfer
5,854
448,317
1,627,932
2,082,103
Other
115�080
-
397,381
512,461
2,525,454
1,901.137
6,05.4.714
481,305
_10
EXPENSES
Salaries, wages and employee benefits
418,375
617,734
1,245,736
2,281,845
Long-term debt interest
2,505
-
131,870
134,375
Materials
682,463
1,107,065
732,001
2,521,529
Contracted services
534,857
23,092
1,681,265
2,239,214
Amortization
637,955
977,185
300,183
1,915,323
Loss on disposal of tangible capital
assets
-
12,912
3,715
16,627
Transfer to others
-
-
_ 96,741
96,,741
2.276,155
2.737.988
4,191.511
9,205,654
ANNUAL SURPLUS (DEFICIT)
249.299 (836.851) 1.863,203 1,275,651