Loading...
HomeMy WebLinkAboutFinancial Statements 2003 THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Consolidated Financial Statements December 31, 2003 THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Consolidated Financial Statements Year Ended December 31, 2003 Table of Contents PAGE Auditors'Report 1 Statement of Financial Position 2 Statement of Financial Activities 3 Statement of Changes in Financial Position 4 Notes to the Financial Statements 5 - 10 Schedule of Funds 11 - 13 GRAHAM • SCOTT • ENNS LLP Chartered Accountants 25 John Street South Telephone: (519)773-9265 Aylmer, Ontario Facsimile: (519)773-9683 N5H 2C1 www.grahamscottenns.com AUDITORS' REPORT To the Members of Council, Inhabitants and Ratepayers of The Corporation of the Municipality of Bayham We have audited the consolidated balance sheet of The Corporation of the Municipality of Bayham as at December 31, 2003 and the consolidated statement of financial activities and changes in financial position for the year then ended. These financial statements are the responsibility of the Municipality's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian 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 of the Municipality of Bayham as at December 31, 2003 and the results of its operations and changes in financial position for the year then ended in accordance with Canadian generally accepted accounting principles. St. Thomas, Ontario9144-44ftScar Spam, 4.4P February 26,2004 CHARTERED ACCOUNTANTS - 1 - THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Consolidated Statement of Financial Position As At December 31, 2003 2003 2002 ASSETS Financial Assets Cash and short term deposits 1,213,751 1,481,827 Taxes receivable 501,108 441,826 Accounts receivable 228,214 300,378 Other current assets 13,137 10.785 TOTAL ASSETS � 1,956,210 _Z234,816 LIABILITIES Liabilities Deferred revenue- obligatory reserve funds (note 7) 54,555 55,876 Accounts payable and accrued liabilities 330,992 218,943 Net long-term liabilities(note 4) 1,515,892 1.680.853 1,901 439 1,955,672 MUNICIPAL POSITION FUND BALANCES (NOTE 5) Current fund (page 11) 34,745 36,915 Capital fund(page 12) 313,597 366,914 Reserves (page 13) 1,187,797 1,544,723 Reserve funds (page 13) 34,524 11.445 1,570,663 1,959,997 AMOUNTS TO BE RECOVERED From future revenues (1,515,892) (1,680,853) TOTAL MUNICIPAL POSITION 5&771 279,144 TOTAL LIABILITIES AND MUNICIPAL POSITION - 1,956,210 2,234,816 See accompanying notes to the consolidated financial statements. - 2 - THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Consolidated Statement of Financial Activities Year Ended December 31, 2003 2003 2002 REVENUES Property taxation 1,773,413 1,653,321 Taxation from other governments 41,367 41,025 User charges 820,340 664,765 Government grants 1,560,078 1,752,797 Contribution from developers 18,116 11,600 Investment income 51,839 84,558 Penalties and interest on taxes 72,194 57,636 Recoveries from benefiting landowners 268,407 1,655,149 Other 80,798 12.029 Total Revenues 4,686,552 5.932.880 EXPENDITURES Current General government 479,709 431,629 Protection to persons and property 975,182 933,508 Transportation services 1,005,214 884,011 Environmental services 873,339 738,098 Health services 42,673 58,001 Social and family services 4,150 7,784 Recreation and cultural services 248,359 210,502 Planning and development 102,380 141.906 Total current expenditures 3,731,006 3.405.439 Capital General government 10,197 28,088 Protection to persons and property 244,012 39,665 Transportation services 567,298 571,454 Environmental services 269,949 860,692 Health services 1,738 24,297 Recreation and cultural services 42,118 102,906 Planning and development 48.903 7.728 Total capital expenditures 1,184,215 1.634.830 Total Expenditures 4,915,221 5.040.269 NET REVENUES/(EXPENDITURES) (228,669) 892.611 Increase (decrease) in amounts to be recovered (160,665) (109.784) CHANGE IN FUND BALANCES , (389,334) 782 827 See accompanying notes to the consolidated financial statements. - 3 - THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Consolidated Statement of Changes in Financial Position Year Ended December 31, 2003 2003 2002 OPERATIONS Net revenues (228,669) 892,611 Uses: Increase in taxes receivable (59,282) (33,871) Increase in other current assets (2,352) (2,874) Decrease in temporary bank advances - (2,000,000) Decrease in accounts payable and accrued liabilities - (139,029) Decrease in deferred revenue- obligatory reserve funds (1,321) - (4,946) (62,955) (2,180.720) Sources: Decrease in accounts receivable 72,164 44,308 Increase in accounts payable and accrued liabilities 112,049 - 184,213 44,308 Net change in cash from operations (107,411) (1,243,801) FINANCING Long-term debt advances (repayment) (160,665) 1,507,563 Net change in cash from financing (160,665) 1,507,563 NET CHANGE IN CASH AND CASH EQUIVALENTS (268,076) 263,762 OPENING CASH AND CASH EQUIVALENTS 1,481,827 1 218,065 CLOSING CASH AND CASH EQUIVALENTS 1,2E 1,481,827 See accompanying notes to the consolidated financial statements. - 4 - THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Notes to the Consolidated Financial Statements Year Ended December 31, 2003 The Municipality of Bayham 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 Corporation of the Municipality of Bayham are prepared by management in accordance with generally accepted accounting principles for local governments as recommended by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants. Significant aspects of the accounting policies adopted by the Municipality are as follows: Reporting Entity The consolidated financial statements reflect the assets, liabilities, revenues, expenditures and fund balances 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 owned or controlled by the Municipality. These financial statements include: -Various Community Centre Boards - Various Cemetery Boards -Museum Board Inter-departmental and inter-organizational transactions and balances between these organizations are eliminated. The following joint local board is not consolidated: (see Note 2 and 8) Elgin Area Primary Water Board Fund Accounting Funds within the consolidated financial statements consist of current, capital and reserve funds. Transfers between funds are recorded as adjustments to the appropriate municipal fund balance. Trust funds and their related operations administered by the municipality are not included in these financial statements but are reported on separately on the Trust Funds Statement of Continuity and Balance Sheet. Capital Assets Expenditures made on capital assets are reported as capital expenditures on the statement of financial activities in the period incurred. - 5 - THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Notes to the Consolidated Financial Statements Year Ended December 31, 2003 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Reserves and Reserve Funds Certain amounts, as approved by Municipal Council, are set aside in reserves and reserve funds for future operating and capital purposes. Transfers to and/or from reserves and reserve funds are an adjustment to the respective fund when approved. Government Transfers Government transfers are recognized in the financial statements as revenues in the period in which events giving rise to the transfer occur providing the transfers are authorized, any eligibility criteria have been met, and reasonable estimates of the amounts can be made. Deferred Revenue Deferred revenues represent user charges and fees which have been collected but for which the related services have yet to be performed. These amounts will be recognized as revenues in the fiscal year the services are performed. Use of Estimates The preparation of financial statements in conformity with Canadian generally accepted accounting principles require 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 expenditures during the period. Actual results could differ from these estimates. 2. CONTRIBUTIONS TO UNCONSOLIDATED JOINT BOARDS Further to Note 1, the Municipality contributed $58,143 in the current year (2002 - $61,561) to the Elgin Area Primary Water Board. The Municipality is contingently liable or has contingent gains for its share of any deficit/surplus, reserves/reserve funds and long-term liabilities which may arise or be incurred by the Elgin Area Primary Water Board. See Note S for further disclosure on the Elgin Area Water Board. - 6 - THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Notes to the Consolidated Financial Statements Year Ended December 31, 2003 3. OPERATION OF SCHOOL BOARDS AND THE COUNTY OF ELGIN During 2003, requisitions were made by the school boards and the County of Elgin requiring the municipality to collect property taxes and payments in lieu of property taxes on their behalf. The amounts collected and remitted are summarized below: School Boards County $ __ Taxation and user charges 1,270,357 1,560,750 Share of payments in lieu of taxes - 15,030 Amounts requisitioned 1,270,357 1,575,780 4. NET LONG-TERM LIABILITIES a) The balance of net long-term liabilities reported on the Consolidated Statement of Financial Position is made up of the following: 2003 2002 $ _ Total long-term liabilities incurred by the municipality, including those incurred on behalf of benefiting landowner 1,515,892 1,680,853 Principal repayments are summarized as follows: 2004 2005 2006 2007 2008 Beyond Total Recoverable From General tax revenue 21,917 - - - - - 21,917 Benefitting landowners 144,063 153,462 154,845 164,761 174,473 702.371 1.493,975 1650 153,462 ,154,845 164,761 ,174,473 702,371 1515,892_ - 7 - THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Notes to the Consolidated Financial Statements Year Ended December 31, 2003 4. NET LONG-TERM LIABILITIES (CONTINUED) 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 2003 amounted to $105,368 (2002 - $63,170) 5. MUNICIPAL FUND BALANCES AT THE END OF THE YEAR The Municipality's fund balances are comprised of the following: 2003 2002 For general reduction of taxation: Municipality - - Cemetery boards 63,171 64,421 Benefiting landowners (28.426) (27.507) 34,745 36,914 For acquisition of fixed assets 313,597 366,914 Reserves 1,187,797 1,544,723 Reserve funds 34,524 11.445 1570,663 19996 6. TRUST FUNDS Trust funds administered by the municipality amounting to $201,227 (2002 - $195,913) have not been included in the Consolidated Balance Sheet nor have their operations been included in the Consolidated Statement of Operations. - 8 - THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Notes to the Consolidated Financial Statements Year Ended December 31, 2003 7. DEFERRED REVENUE-OBLIGATORY RESERVE FUNDS A requirement of the public sector accounting principles of the Canadian Institute of Chartered 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 funds may be refunded. The balances in the obligatory reserve funds of the Municipality are summarized below: 2003 2002 Development Charges 9,094 8,533 Parkland 45.461 47,343 54,555 55,876 8. CONTRACTUAL OBLIGATION-CITY OF LONDON/ONTARIO CLEAN WATER In accordance with a service agreement entered into by the Municipality with the Ontario Clean Water Agency (OCWA) the existing Elgin Area Primary Water Supply System is owned and operated by the Agency. The municipality is obligated to meet its share of the operating costs and deficits and repay its share of the long-term liabilities related to these projects. The municipality's share is based on its water consumption relative to that of the other participating municipalities. As of September 1, 1998, the municipality has authorized the City of London to take over the administrative functions of the Primary Water Supply System including the issuance of debt to pay out the balance of debt and accumulated deficit of the participating municipalities. Charges related to operating costs and debt servicing are recovered through the water rates levied by the Municipality. Information received from the City of London as at December 31, 2003 indicates the following: Outstanding Contractual Accumulated 2003 Debt Long-term Obligation Surplus Charges Liabilities Primary Water Supply System City of London 48,596 11,902 76,671 The operating surplus and long-term liabilities indicated above are not reflected in the accompanying financial statements. - 9 - THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Notes to the Consolidated Financial Statements Year Ended December 31, 2003 9. BUDGET FIGURES The Council of the Municipality of Bayham completes separate budget reviews for its operating and capital funds each year. The approved 2003 operating and capital budgets are reflected on the respective schedules of operations. Funding for the capital projects is made by transfers from reserve and operating funds, application of associated grants, and the use of other funds available to apply to capital projects. During 2003, Council approved transfers totalling$716,004 (2002 - $216,900) from reserve and reserve funds for capital projects. As many capital projects are carried out over one or more years, the annualized budget information on the Consolidated Schedule of Capital Operations represents the budget portion of expenditures for the current year only. 10. PUBLIC SECTOR SALARY DISCLOSURE In 2003, no employees were paid a salary, as defined in the Public Sector Salary Disclosure Act, 1996, of$100,000 or more by The Corporation of the Municipality of Bayham. - 10- THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Consolidated Schedule of Current Fund Operations Year Ended December 31, 2003 Unaudited Budget 2003 2003 2002 REVENUES Property taxation 1,775,084 1,773,413 1,653,321 Taxation from other governments 41,367 41,367 41,025 User charges 847,061 802,707 653,274 Government grants 1,518,301 1,560,078 1,714,966 Contribution from developers - - 3,000 Investment income 40,000 51,512 62,888 Penalties and interest on taxes 55,000 72,194 57,636 Recoveries from benefiting landowners 209,986 219,943 259,219 Other 22,755 30,584 12.029 Total Revenues 4.509.554 4,551,798 4.457,358 EXPENDITURES General government 493,695 479,709 431,629 Protection to persons and property 1,017,270 975,182 933,508 Transportation services 964,279 1,005,214 884,011 Environmental services 797,123 873,339 738,098 Health services 58,013 42,673 58,001 Social and family services 4,150 4,150 7,784 Recreation and cultural services 246,075 248,359 210,502 Planning and development 12$,729 102,380 141,906 Total Expenditures 3.709.334 3,731,006 3.405,439 NET REVENUES/(EXPENDITURES) 800,220 820,792 1,051,919 FINANCING AND TRANSFERS Transfers to reserves and reserve funds (140,248) (131,893) (369,512) Transfers to capital fund (499,306) (530,404) (575,258) Debt principal repayment (160.666) (160,665) (109.784) Net financing and transfers (800,220) (822,962) (1.054.554) CHANGE IN CURRENT FUND BALANCE - (2,170) (2,635) OPENING CURRENT FUND BALANCE 36,915 36,915 39.550 CLOSING CURRENT FUND BALANCE 36,915 34,745 36,915 - 11 - THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Consolidated Schedule of Capital Fund Operations Year Ended December 31, 2003 Unaudited Budget 2003 2003 2002 _ $ _ REVENUES Government grants - - 37,831 Contribution from developers - 18,116 8,600 Sale of assets 50,214 - Benefiting landowners - 48,464 1,395,930 Other 13.500 17,633 11,491 Total Revenues 13,500 134,427 1,453,852 EXPENDITURES General government 34,500 10,197 28,088 Protection to persons and property 247,206 244,012 39,665 Transportation services 447,000 567,298 571,454 Environmental services 258,900 269,949 860,692 Health services - 1,738 24,297 Recreation and cultural services 94,024 42,118 102,906 Planning and development 28,770 48,903 7.728 Total Expenditures 1,110,400 1,184,215 1,634,830 NET REVENUES/(EXPENDITURES) (1,096,900) (1,049,788) (180,978) FINANCING AND TRANSFERS Transfers from reserves and reserve funds 590,004 466,067 104,964 Transfers from operating fund 499,306 530,404 575,258 Proceeds of long term debt - - L617.347 Net financing and transfers 1,089310 996,471 2,297,569 CHANGE IN CAPITAL FUND BALANCE (7,590) (53,317) 2,116,591 OPENING CAPITAL FUND BALANCE 366.914 366,914 (1,749,677) CLOSING CAPITAL FUND BALANCE 3�� 3® 366,914 - 12 - THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Consolidated Schedule of Reserves and Reserve Funds Year Ended December 31, 2003 2003 2002 $ 9 REVENUES Investment income 327 21.670 Net revenues 327 21,670 FINANCING AND TRANSFERS Transfers to capital fund (466,067) (104,964) Transfer from current fund 131,893 369.512 Net transfers (334,174) 264,548 CHANGE IN RESERVE AND RESERVE FUND BALANCES (333,847) 286,218 OPENING RESERVE AND RESERVE FUND BALANCE 1,556,168 1.269.950 CLOSING RESERVE AND RESERVE FUND BALANCE , 1,222321 1,556,168 ANALYZED AS FOLLOWS: Reserves set aside for specific purposes by Council: - for working capital 334,307 334,307 - for capital purposes 476,422 758,006 - for waterworks purposes 7,952 58,578 - for rate stabilization 214,513 236,714 - for other purposes 154,603 157.118 Total reserves 1.187,797 1,544,723 Reserve funds set aside for specific purposes by Council: - for construction of sanitary and storm sewers 9,869 5,936 - for cultural service purposes 18,989 - for other purposes 5,666 5.509 Total reserve funds 34,524 11.445 TOTAL RESERVES AND RESERVE FUNDS 1,222,321 1,556,168 - 13 - THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Unconsolidated Trust Funds December 31, 2003 GRAHAM • SCOTT • ENNS LLP Chartered Accountants 450 Sunset Drive Telephone: (519)633-0700 St. Thomas, Ontario Facsimile: (519) 633.7009 N5R 5 V 1 www.grahamscottenns.com AUDITORS' REPORT To the Members of Council, Inhabitants and Ratepayers of The Corporation of the Municipality of Bayham We have audited the trust fund balance sheet of The Corporation of the Municipality of Bayham as at December 31, 2003 and the trust fund statement of continuity for the year then ended. These financial statements are the responsibility of the Municipality's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian 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 fund of the Municipality as at December 31, 2003 and the continuity of trust fund for the year then ended in accordance with Canadian generally accepted accounting principles. St. Thomas, Ontario 9taktOt Sear 5m4, 44 February 26, 2004 CHARTERED ACCOUNTANTS See accompanying notes to the financial statements THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Trust Funds Balance Sheet As At December 31, 2003 Cemeteries Care and O.H.R.P. Developers' Total Maint Fund Funds Deposits 2003 __ $ $ $ Assets Cash 145,844 15 19,199 165,058 Accounts receivable 601 - - 601 Loans receivable - 1,867 - 1,867 Debentures 33,799 - - 33,799 180,244 1,882 , 19,199 201,325 Liabilities Administration fees &interest payable - - - - Accounts payable 96 - - - 96 96 - - 96 Fund Balances Capital balance 180,148 1,882 19,199 201,229 . 180244, 19J 999 20® See accompanying notes to the financial statements THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Trust Funds Statement of Continuity As At December 31, 2003 Cemeteries Care and O.H.R.P Developers' Total Maint Fund Funds Deposits 2003 $ $ $ $ Balance,beginning of year 175.097 1.879 18.938 195,914 Capital receipts Sale of plots/monuments 5,832 - - Interest earned 9.211 3 261. 9,475 15.043 3 261 9,475 Expenditures Payments to cemetery board 9,927 - - 9,927 Repayment to Ministry of Housing - - - - Administration fees - - Death taxes 65 - - 65 9,992 - 9,992 Balance, end of year 180,148 1,882 19.199 201.229 See accompanying notes to the financial statements THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Trust Funds Notes to the Financial Statements As At December 31, 2003 1. SIGNIFICANT ACCOUNTING POLICY 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. 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 home 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, 2003 comprise repayable loans of $1,866 (2002- $1,866) and forgivable loans of $nil (2002 - nil). 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. 3. CEMETERIES CARE AND MAINTENANCE FUND The cemeteries care and maintenance fund administered by the Municipality is funded by the sale of cemetery plots. These funds are invested and earnings derived therefrom are used to perform perpetual care and maintenance to the municipality's cemeteries. The operations and investments of the Fund are undertaken by the Municipality in accordance with the regulations of the Cemeteries Act.