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HomeMy WebLinkAboutFinancial Statements 2000THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Financial Statements December 31, 2000 THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Financial Statements Year Ended December 31, 2000 INDEX SECTION Consolidated Financial Statements Unconsolidated Trust Funds 2 THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Consolidated Financial Statements December 31, 2000 THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Consolidated Financial Statements Fear Ended December 31, 2000 Table of Contents Auditors' Report Statement of Financial Position Statement of Financial Activities Statement of Change in Financial Position Notes to the Financial Statements Schedule of Funds PAGE 1 2 3 4 5-10 11 - 13 GRAHAM • SCOTT • ENNS LLP Chartered Accountants 25 Sohn 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, 2000 and the consolidated statement of financial activities and change 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 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 The Corporation of the Municipality of Bayham as at December 31, 2000 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, Ontario April 24, 2001 qwltam .50& gam, zzp CHARTERED ACCOUNTANTS THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Consolidated Statement of Financial Position As At December 31, 2000 2000 1999 ASSETS Financial Assets Cash and short term deposits 4,027,340 1,176,267 Taxes receivable 378,051 321,845 Accounts receivable 5701429 263,931 Other current assets 13,895 17,447 TOTAL ASSETS 4,989,715 1,779,490 LIABILITIES Liabilities Deferred revenue - obligatory reserve funds (note 7) 55,748 51,630 Accounts payable and accrued liabilities 1,368,492 569,067 Net long-term liabilities (note 4) 19.5,204 240,090 MUNICIPAL POSITION FUND BALANCES (NOTE 5) 1,619,444 $60,787 Current fund 268,054 306,995 Capital fund 2,451,146 (581,190) Reserves (page 13) 767,640 784,226 Reserve funds (page 13) 78,635 648,762 3,565,475 1,158,793 AMOUNTS TO BE RECOVERED From future revenues (195,204) (240,090) TOTAL MUNICIPAL POSITION 3,370,271 918,703 TOTAL LIABILITIES AND MUNICIPAL POSITION 4,989,715 1,779,490 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, 2000 See accompanying notes to the consolidated financial statements. -3- 2000 1999 REVENUES Property taxation 1,482,749 1,450,153 Taxation from other governments 21,294 26,213 User charges 579,466 462,231 Government grants 14,756,669 1,359,183 Investment income 512,678 87,804 Penalties and interest on taxes 48,975 46,634 Other 29,516 13,195 Total Revenues 17,431J47 3,445,413 EXPENDITURES Current General government 454,244 5 87,15 7 Protection to persons and property 723,226 702,729 Transportation services 861,786 795,380 Environmental services 505,059 505,576 Health services 28,462 19,534 Social and family services 6,790 5,800 Recreation and cultural services 223,102 199,232 Planning and development 85,539 115,266 Total current expenditures 2,888,208 2,930.674 Capital Protection to persons and property 203,834 40,322 Transportation services 227,881 314,267 Environmental services 11,604,862 595,190 Health services - 98,605 Recreation and cultural services 21,367 120,680 Planning and development 48,472 - Total capital expenditures 12,106,416 1,169,064 Total Expenditures 14,994,624 4,099,738 NET REVENUES/(EXPENDITURES) 2,436,723 (654,325) Increase/(decrease) in amounts to be recovered (30,041) - CHANGE IN FUND BALANCES 2 4 (654,325) See accompanying notes to the consolidated financial statements. -3- THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Consolidated Statement of Change in Financial Position Year Ended December 31, 2000 OPERATIONS Net revenues Uses: Increase in taxes receivable Increase in accounts receivable Increase in other current assets Sources: Decrease in taxes receivable Decrease in accounts receivable Decrease in other current assets Increase in accounts payable and accrued liabilities Increase in deferred revenue - obligatory reserve funds Net change in cash from operations FINANCING Long-term debt repayment Net change in cash from financing NET CHANGE IN CASH AND CASH EQUIVALENTS OPENING CASH AND CASH EQUIVALENTS CLOSING CASH AND CASH EQUIVALENTS 2000 1999 2,436,723 (654,325) (56,206) (306,498) (6,94Q) (362,704) (6,940) 28,630 - 298,617 3,552 799,425 63,487 4,11.8 24,438 807,095 415,172 2,881,114 L46,093) (30,041) 140,173 (30,041) 140,173 2,851,073 (105,920) 1,176,267 1,282,187 4,027,340 1,176,x267 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, 2000 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 Interdepartmental and inter -organizational transactions and balances between these organizations are eliminated. 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 town 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, 2000 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 fess 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 generally accepted accounting principles 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 expenditures during the period. Actual results could differ from these estimates. 2. ADOPTION OF PUBLIC SECTOR ACCOUNTING RECOMMENDATIONS Commencing in 2000, the Municipality has adopted the local government accounting standards issued by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants. The comparative figures included in this financial statement have been restated to confirm with the accounting standards adopted for the current year. The adoption of these standards has resulted in the following changes to amounts previously reported. a) the balances reported for cash and short-term deposits and investments in these financial statements include both funds for current purposes and balances held for reserve funds; THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Notes to the Consolidated Financial Statements Year Ended December 31, 2000 b) amounts previously reported as reserve funds arising from development charges and parks contributions amounting to $51,630 are included in deferred revenues - obligatory reserve funds; 3. OPERATION OF SCHOOL BOARDS AND THE COUNTY OF ELGIN During 2000, 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 _5— . Taxation and user charges 1,285,919 1,252,131 Share of payments in lieu of taxes - 8,567 Amounts requisitioned 1,285,919 1,260,b98 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: 2000 1999 $ –3— Total long-term liabilities incurred by the municipality, including those incurred on behalf of benefiting landowner 195,204 240,090 b) Of the long-term liabilities reported in (a) of this note, $193,713 in principal repayments are payable from 2001 to 2005 and $1,491 in 2006 and beyond. These are summarized as follows: -from general revenues -from benefiting 7- 2001-5 2006 and beyond 124,059 - 69,654 1,491 193,713„ 1�49�1 THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Notes to the Consolidated Financial Statements Year Ended December 31, 2000 4. NET LONG-TERM LIABILITIES (CONTINUED) c) 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 d) Interest expense on long-term liabilities in 2000 amounted to $17,067 (1999 - $8,343) 5. MUNICIPAL FUND BALANCES AT THE END OF THE YEAR The Municipality's fund balances are comprised of the following: For general reduction of taxation: Municipality Cemetery boards Benefiting land owners For acquisition of fixed assets Reserves Reserve Funds 6. TRUST FUNDS 2000 1999 $ _S 236,714 255,703 59,054 54,210 (27,714) T (2,918) 268,054 306,995 2,451,146 (581,190) 767,640 784,226 78,635 648,762 3,565,475 1,158,793 Trust funds administered by the municipality amounting to $195,204 (1999 - $190,048) have not been included in the Consolidated Balance Sheet nor have their operations been included in the Consolidated Statement of Operations. 7 S. THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Notes to the Consolidated Financial Statements Year Ended December 31, 2000 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 possibly be refunded. The balances in the obligatory reserve funds of the Municipality are summarized below: Development Charges Parkland 2000 1999 10,771 6,468 44,977 45,161 55,748 51,629 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, 2000 indicates the following: Outstanding Contractual Accumulated 2000 Debt Long-term Obligation Surplus Charges Liabilities Primary Water Supply System City of London 34,070 11,950 96.882, The operating surplus and long-term liabilities indicated above are not reflected in the accompanying financial statements. WE THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Notes to the Consolidated Financial Statements Year Ended December 31, 2000 9. BUDGET FIGURES The Council of the Municipality of Bayham completes separate budget reviews for its operating and capital funds each year. The approved operating budget for 2000 is reflected on the Schedule of Current Fund Activities. For capital spending, budgets are set for individual projects and funding for these activities is determined annually and and made by transfers from reserve funds, operating funds and by the application of applicable grants or other funds available to apply to capital projects. During 2000, Council approved transfers totalling $792,950 (1999 - $170,356) from reserve funds for capital projects. As many capital projects are carried out over one or more years, it is not practical to present annualized budget information on the Schedule of Capital Operations. 10. PUBLIC SECTOR SALARY DISCLOSURE In 2000, 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, 2000 REVENUES Property taxation Taxation from other governments User charges Government grants Investment income Penalties and interest on taxes Other Total Revenues EXPENDITURES General government Protection to persons and property Transportation services Environmental services Health services Social and family services Recreation and cultural services Planning and development Total expenditures NET REVENUES/(EXPENDITURES) FINANCING AND TRANSFERS Transfers to reserves and reserve fluids Transfers to capital fund Debt principal repayment Net financing and transfers CHANGE IN CURRENT FUND BALANCE OPENING CURRENT FUND BALANCE CLOSING CURRENT FUND BALANCE -11 Budget 527,906 483,482 2000 2000 1999 (425,215) (406,502) (284,433) 1,477,205 1,482,749 1,450,153 13,018 21,294 26,213 557,814 496,605 462,231 13235,274 1,267,588 1,359,183 60,000 69,387 56,547 41,000 48,975 46,634 26,691 29,516 13,195 3,411,002 3,416,114 3,414,156 428,774 454,244 587,157 784,402 723,226 702,729 888,828 861,786 795,380 495,390 505,059 505,576 33,808 28,462 19,534 7,000 6,790 5,800 206,560 223,102 199,232 109.517 85,539 115,266 2.954279 2,888,208 2,930.674 456L723 527,906 483,482 (82,318) (130,304) (185,500) (425,215) (406,502) (284,433) - (30,041) - (507,533) (566,847) (469,933) (50,810) (38,941) 13,549 306,995 306,995 293,446 256,185 268,054 3 THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Consolidated Schedule of Capital Fund Operations Year Ended December 31, 2000 EXPENDITURES Protection to persons and property 2000 1999 40,322 ._ $ REVENUES 314,267 Government grants 13,489,081 - Investment income 432,797 - Other _ 82,861 - Total Revenues 14,004,739 EXPENDITURES Protection to persons and property 203,834 40,322 Transportation services 227,881 314,267 Environmental services 11,604,862 595,190 Health services - 98,605 Recreation and cultural services 21,367 120,680 Planning and development _ 48,472 Total expenditures 12,106,416 1,169,064 NET REVENUESI(EXPENDITURES) 1,8989323 (1,169.064) FINANCING AND TRANSFERS Transfers from reserves and reserve funds 727,511 149,341 Transfers from operating fund 406,502 284,433 Proceeds of long term debt - 154.100 Net financing and transfers 1,134,013 587.874 CHANGE IN CURRENT FUND BALANCE 3,032,336 (581,190) OPENING CURRENT FUND BALANCE (581,199) - CLOSING CURRENT FUND BALANCE 2,4 (581,190) -12- THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Consolidated Schedule of Reserves and Reserve Funds Year Ended December 31, 2000 REVENUES Investment income Net revenues FINANCING AND TRANSFERS Transfers to capital fund Transfer from current fund Net transfers CHANGE IN RESERVE AND RESERVE FUND BALANCES OPENING RESERVE AND RESERVE FUND BALANCE CLOSING RESERVE AND RESERVE FUND BALANCE ANALYZED AS FOLLOWS: Reserves set aside for specific purposes by Council: - for working capital - for acquisition of fixed assets - for waterworks purposes _ for other purposes Total reserves Reserve funds set aside for specific purposes by Council: for water system - for construction of sanitary and storm sewers - for parks and recreation purposes - for other purposes Total reserve funds TOTAL RESERVES AND RESERVE FUNDS 13 2000 1999 10,494 31,257 10,494 31,257 (727,511) (149,341) 130,304 _ 185.500 (597,207] 36,159 (586,713) 67,416 1,432,988 1,365,572 846,275 1,432988 334,307 334,307 182,711 323,418 111,045 57,351 139,577 69,150 767,640 784,226 9,597 36,041 27,980 5,017 78,635 846,275 101,140 513,322 24,148 10,152 648,762 1,432,988 THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Unconsolidated Trust Funds December 31, 2000 GRAHAM • SCOTT • ENNS LLP Chartered Accountants 450 Sunset Drive Telephone: (519) 633-0700 St. Thomas, Ontario Facsimile: (519) 633-7009 N5R 5V1 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, 2000 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 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, 2000 and the continuity of trust fund for the year then ended in accordance with generally accepted accounting principles. St. Thomas, Ontario April 24, 2001 qm"M s0& saw, .z;v CHARTERED ACCOUNTANTS See accompanying notes to the financial statements THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Trust Funds Balance Sheet As At December 31, 2000 Assets Cash Acounts receivable Loans receivable Debentures Liabilities Administration fees & interest payable Accounts payable Fund Balances Capital balance Cemeteries Care and O.H.R.P. Developers' Total Maint Fund Funds Deposits 2000 $ S_ _ $ 59,454 758 17,878 78,090 2,193 - 2,193 - 2,428 - 2,428 112,493 - - 11.2,493 174,140 3.186 17,878 195,204 - 37 - 37 2,125 708 2,833 2,125 745 - 2,870 172,015 2,441 17,878 192,334 174,140 3,186 17,878 19 See accompanying notes to the financial statements THE CORPORATION OF THE MUNICIPALITY OF BAYHAM Trust Funds Statement of Continuity As At December 31, 2000 Balance, beginning of year Capital receipts Sale of plots/monuments Interest earned Expenditures Payments to cemetery board Repayment to Ministry of Housing Administration fees Death taxes Balance, end of year Cemeteries Care and Maint Fund 167,035 5,600 11,838 17,438 O.H.R.P. Funds 2,948 238 238 Developers' Total Deposits 2000 —L- $ 16,483 186,467 1,395 13,471 1,395 13,471 12,089 12,089 - 708 708 37 37 370 - - 370 12,459 745 - _ 13,204 172,015 2,441 17,878 192,334 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, 2000 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, 2000 comprise repayable loans of $2,428 (1999- $2,948) and forgivable loans of $nil (1998 - 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 earnigs 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.