HomeMy WebLinkAboutFinancial Statements 2012 f; F
1
JULa32013
MUNICIPALITY OF 5,AYHAM
THE CORPORATION OF THE
MUNICIPALITY OF BAYHAM
Consolidated Financial Statements
December 31, 2012
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Consolidated Financial Statements
Year Ended December 31, 2012
Table of Contents PAGE
Independent Auditors' Report 1
Consolidated Statement of Financial Position 2
Consolidated Statement of Operations and Accumulated Surplus 3
Consolidated Statement of Change in Net Financial Assets 4
Consolidated Statement of Cash Flows 5
Notes to the Consolidated Financial Statements 6 - 16
Consolidated Schedule of Segment Disclosure 17 - 18
Schedule of Segment Disclosure 19
Consolidated Schedule of Tangible Capital Assets 20 - 21
% GRAHAM William A.Graham* Alan R.Enns*
John M.Scott* Michael S.Stover*
SCOTT Robert B.Foster* William J. Luyks*
ENNS LLE James G.Frederick* Betty A.Gropp
Michael J.MacKinnon* Garth G. Howes*
• CHARTERED ACCOUNTANTS *Practicing through a Professional Corporation
450 Sunset Drive,St.Thomas,ON N5R 5V1 25 John St.S.,Suite 208,Aylmer,ON N5H 2C1
Phone:(519)633-0700 Fax:(519)633-7009 Phone:(519)773-9265 Fax:(519)773-9683
INDEPENDENT AUDITORS'REPORT
To the Members of Council,Inhabitants and Ratepayers of
The Corporation of the Municipality of Bayham:
Report on the Financial Statements
We have audited the accompanying consolidated financial statements of The Corporation of the Municipality of Bayham,
which comprise the consolidated statement of financial position as at December 31, 2012, and the statements of consolidated
operations and accumulated surplus, changes in net assets, and cash flow for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these 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 financial statements that are free from material misstatement,whether due to fraud or error.
Auditors'Responsibility
Our responsibility is to express an opinion on these fmancial statements based on our audit. We conducted our audit in
accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free of material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity's preparation and fair presentation of the financial statements 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 entity's internal
control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by management,as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion,the consolidated fmancial statements present fairly, in all material respects,the statement of financial position of
The Corporation of the Municipality of Bayham as at December 31,2012,and the statements of operations and accumulated
surplus, changes in net assets, and cash flow for the year then ended in accordance with Canadian accounting standards for
public sector entities.
St. Thomas,Ontario 9i14/1402 scat Saptd14P
June 20,2013 CHARTERED ACCOUNTANTS
Licensed Public Accountants
- 1 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Consolidated Statement of Financial Position
As At December 31, 2012
2012 2011
$ $
ASSETS
FINANCIAL ASSETS
Cash 1,658,291 791,742
Investments (Note 2) 2,997,972 2,904,651
Taxes receivable (Note 3) 785,841 807,143
Accounts receivable 951,713 853,638
6,393,817 5.357,174
LIABILITIES
Deferred revenue - obligatory reserve funds (Note 9) 162,600 364,029
Accounts payable and accrued liabilities 1,057,091 939,064
Net long-term liabilities (Note 4) 1,193,887 515,234
2,413,578 1,818,327
NET FINANCIAL ASSETS 3,980,239 3,538,847
NON-FINANCIAL ASSETS
Tangible capital assets (Note 6, pages 20, 21) 54,890,311 54,782,472
Inventories and prepaid expenses 21,705 22,791
54,912,016 54,805,263
ACCUMULATED SURPLUS (NOTE 7) 58,892,255 58,344,110
See accompanying notes to the consolidated financial statements.
- 2 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Consolidated Statement of Operations and Accumulated Surplus
Year Ended December 31, 2012
Unaudited Budget Actual Actual
2012 2012 2011
$ $ $
REVENUES
Property taxation 3,053,714 3,069,479 3,067,489
Taxation from other governments 44,231 44,231 53,723
User charges 1,535,288 1,788,172 1,681,911
Transfer payments
Federal 409,100 526,327 1,328,849
Provincial 1,706,600 1,415,806 619,515
Other municipalities 473,834 550,406 457,458
Investment income 70,000 121,040 107,902
Penalties and interest on taxes 96,000 104,699 106,178
Recoveries from benefiting landowners - 414,232 579,332
Other 150,500 113,556 357,180
Total Revenues 7,539,267 8,147,948 8,359,537
EXPENSES
General government 695,143 715,579 711,173
Protection to persons and property 1,380,365 1,464,196 1,296,295
Transportation services 1,565,967 2,604,498 2,628,701
Environmental services 1,379,739 2,049,980 1,924,517
Health services 19,250 49,545 42,285
Social and family services 15,100 13,934 6,805
Recreation and cultural services 283,152 294,829 318,935
Planning and development 190,030 376,230 238,732
Loss on disposal of tangible capital assets - 31,012 390,896
Total Expenses (Note 14) 5.528,746 7,599,803 7,558,339
ANNUAL SURPLUS 2,010,521 548,145 801,198
ACCUMULATED SURPLUS, BEGINNING OF YEAR 58,344,110 58,344,110 57,542,912
ACCUMULATED SURPLUS, END OF YEAR(NOTE 7) 60,354,631 58,892,255, 58,344,110
See accompanying notes to the consolidated financial statements.
- 3 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Consolidated Statement of Changes in Net Financial Assets
Year Ended December 31, 2012
2012 2011
$ $
ANNUAL SURPLUS 548,145 801,198
Acquisition of tangible capital assets (1,652,360) (1,636,373)
Amortization of tangible capital assets 1,496,008 1,226,303
Proceeds on disposal of tangible capital assets 17,500 20,000
Change in inventories, prepaid expenses and deferred charges 1,087 1,351
Loss (gain) on sale of tangible capital assets 31,012 390,896
INCREASE IN NET FINANCIAL ASSETS 441,392 803,375
NET FINANCIAL ASSETS, BEGINNING OF YEAR 3,538,847 2,735,472
NET FINANCIAL ASSETS, END OF YEAR 3,980,239 3,538,847
See accompanying notes to the consolidated financial statements.
- 4 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Consolidated Statement of Cash Flows
Year Ended December 31, 2012
2012 2011
$ $
OPERATING ACTIVITIES
Annual surplus 548,145 801,198
Add (deduct) items not involving cash:
Amortization of tangible capital assets 1,496,008 1,226,303
Loss on disposal of and transfer of assets 31,012 390,896
2,075,165 2,418,397
Change in non-cash items related to operations (Note 14[b]) (159089) (709,304)
Net change in cash from operating activities 1,916,076 1.709,093
CAPITAL
Acquisition of tangible capital assets (1,652,360) (1,636,373)
Proceeds on disposal of tangible capital assets 17,500 20,000
Net change in cash from capital (1,634,860) (1,616,373)
INVESTING
Investment income reinvested (93,321) (99,268)
Net change in cash from investing (93,321) (99,268)
FINANCING
Long-term debt advances 825,250 358,630
Long-term debt repayment (146,596) (222,341)
Net change in cash from financing 678,654 136,289
NET CHANGE IN CASH AND CASH EQUIVALENTS 866,549 129,741
OPENING CASH AND CASH EQUIVALENTS 791,742 662,001
CLOSING CASH AND CASH EQUIVALENTS 1,658,291 791,742
SUPPLEMENTARY INFORMATION:
Cash paid for interest on debt 21,325 24,027
Cash received for interest on investments 121,040 107,902
See accompanying notes to the consolidated financial statements.
- 5 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2012
The Coporation 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 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 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.
- 6 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2012
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 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 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 funding 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.
- 7 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2012
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.
- 8 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2012
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.
Investment Income
Investment income 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.
Tax Revenues
In 2012, the Municipality received $3,113,710 (2011 - $3,121,212) 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.).
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.
- 9 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2012
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Financial Instruments
The Municipality's financial instruments and consist of cash and cash equivalents, accounts
receivable, taxes receivable, accounts payable and accrued liabilities and long-term liabilities. Unless
otherwise noted, it is management's opinion that the Corporation is not exposed to significant
interest, currency, or credit risk arising from these financial instruments.
2. INVESTMENTS
Investments are comprised of the following:
2012 2011
$ $ $ $
Cost Market Cost Market
One fund pooled bond securities 2,997,972 2,970,321 2,904,651 2,924,874
3. TAXES RECEIVABLE
2012 2011
$ $
Taxes receivable 659,404 744,483
Penalties and interest 126,437 126,437
Allowance for doubtful accounts - (63,777)
785,841 807,143
- 10 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2012
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:
2012 2011
$ $
Total long-term liabilities incurred by the municipality,
including those incurred on behalf of benefiting landowner , 1,193,887 515,234
Principal repayments are summarized as follows:
2013 2014 2015 2016 2017 Beyond Total
Recoverable From $ $ $ $ $ $ $
General tax revenue - - - - - - -
Benefiting landowners 88,244 91,633 95,156 98,826 102,627 717,401 1,193,887
88,244 91,633 95,156 98 826 102,627 717,401 1,193,887
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 2012 amounted to $21,325 (2011 - $24,027).
- 11 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2012
5. OPERATION OF SCHOOL BOARDS AND THE COUNTY OF ELGIN
During 2012, 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 1,352,265 2,820,846
Share of payments in lieu of taxes 641 41,215
Amounts requisitioned 1,352,906 2,862,061
6. TANGIBLE CAPITAL ASSETS
Net Book Value
2012 2011
$ $
General
Land 916,444 916,444
Buildings 2,144,464 957,655
Vehicles 932,350 836,427
Machinery and equipment 702,716 625,662
Land improvements 608,475 645,967
Infrastructure
Plants and facilities 4,114,309 4,278,358
Roads 27,054,568 27,770,366
Underground and other networks 16,789,018 16,787,980
Machinery and equipment 1,249358 1,301,648
54,511,702 54,120,507
Assets under construction 378,609 661,965
54,890,311 54,782,472
For additional information, see the Consolidated Schedule of Tangible Capital Assets (Schedule 1).
During the year there were no write-downs of assets (2011 - $nil). In addition, roads and
underground networks contributed to the Municipality totalled $nil (2011 - $349,442) and were
capitalized at their fair value at the time of receipt.
- 12 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2012
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.
Operating fund:
Municipality - 132,971
Cemetery boards 170,647 87,779
Benefiting landowners (63,848) (325,950)
106,799 (105,200)
Invested in tangible capital assets 54,890,311 54,782,472
Capital fund (256,915) (694,420)
Reserves 3,916,894 3,537,762
Reserve funds 1,429,053 1,338,730
60,086,142 58,859,344
AMOUNTS TO BE RECOVERED
Net long-term debt (1,193,887) (515,234)
ACCUMULATED SURPLUS 58,892,255 58,344,110
RESERVES AND RESERVE FUNDS CONSIST OF THE FOLLOWING:
Reserves set aside for specific purposes by Council:
- for working capital 425,000 414,153
- for capital purposes 1,102,937 995,750
- for waterworks purposes 989,458 800,310
- for rate stabilization 645,000 572,090
- for other purposes 754,499 755,459
Total reserves 3,916,894 3,537,762
Reserve funds set aside for specific purposes by Council:
- for water system 97,697 93,569
- for construction of sanitary sewers 1,139,489 1,073,253
- for recreation and cultural service purposes 191,867 164,410
- for other purposes - 7,498
Total reserve funds 1,429,053 1,338,730
- 13 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2012
8. TRUST FUNDS
Trust funds administered by the Municipality amounting to $232,229 (2011 - $219,262) have not
been included in the Consolidated Balance Sheet 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 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:
2012 2011
$ $
Development charges 28,865 27,967
Gasoline tax 81,979 289,792
Parkland 51,756 46,270
162,600 364.029
10. PENSION AGREEMENTS
The Municipality makes contributions to the Ontario Municipal Employees Retirement Fund
(OMERS), which is a multi-employer plan, on behalf of approximately 22 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 2012 was $116,905 (2011 - $83,443).
11. BUDGET FIGURES
The operating budget approved by the council of the Municipality for 2012 is reflected on the
consolidated statement of operations. The budgets established for capital investment in tangible
capital assets are on a project-oriented basis, the costs of which may be carried out over one or more
years and, therefore, may not be comparable with current year's actual expenditure amounts. As well,
the Municipality does not budget activity within Reserve and Reserve Funds, with the exception
being those transactions, which affect either operations or capital investments. Budget figures have
been reclassified for the purposes of these financial statements to comply with PSAB reporting
requirements.
- 14 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2012
12. CONTINGENT LIABILITIES
As at December 31, 2012 certain legal actions are pending against the municipality. The Municipality
has guaranteed the debt of the Elgin Military Museum for an amount of$6,000,000. An estimate of
loss on any contingency cannot be made since the outcome of these matters is indeterminate at this
time.
13. PUBLIC SECTOR SALARY DISCLOSURE
In 2012, no employees were paid a salary, as defined in the Public Sector Salary Disclosure Act,
1996, of$100,000 or more by the Municipality.
14. SUPPLEMENTARY INFORMATION:
2012 2011
$ $
[a] Current fund expenses by object:
Salaries, wages and employees benefits 1,911,644 1,847,619
Long-term debt interest 21,325 24,027
Materials 2,313,317 2,700,913
Contracted services 1,748,052 1,323,937
Rents and financial expenses 2,685 301
Amortization expense 1,496,007 1,226,299
Loss on disposal and transfer of assets 31,012 390,896
External transfers to others 75,761 44,347
7,599,803 7,558,339
[b] Cash flow information:
(Increase) decrease in taxes receivable 21,302 (12,673)
(Increase) decrease in accounts receivable (98,075) (126,044)
(Increase) decrease in inventories and prepaid expenses 1,086 1,351
Increase (decrease) in temporary bank advances - (995,000)
Increase (decrease) in accounts payable and accrued liabilities 118,027 371,898
Increase (decrease) in deferred revenue-obligatory reserve funds (201,429) 51,164
(159,089) (709,304)
- 15 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2012
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 funds.
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.
- 16 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Consolidated Schedule of Segment Disclosure
Year Ended December 31, 2012
Water and Other Total
Waste Funds Roads Segments Consolidated
$ $ $ $
REVENUE
Taxation - 1,096,483 2,017,227 3,113,710
Sales of service and regulatory fees 1,429,785 24,362 334,025 1,788,172
Government transfer 133,776 518,346 1,840,417 2,492,539
Other 437,616 - 315,911 753,527
2,001,177 1,639,191 4,507,580 8,147,948
EXPENSES
Salaries, wages and employee benefits 276,927 602,503 1,032,214 1,911,644
Long-term debt interest 21,140 - 185 21,325
Materials 610,036 1,148,552 554,729 2,313,317
Contracted services 143,883 23,849 1,583,005 1,750,737
Amortization 461,478 829,594 204,935 1,496,007
Loss on disposal and transfer of assets - 31,012 - 31,012
Transfer to others - - 75,761 75,761
1,513,464 2,635,510 3,450,829 7,599,803
ANNUAL SURPLUS (DEFICIT) 487,713 J996,319) 1,056,751 548,145
- 17 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Consolidated Schedule of Segment Disclosure
Year Ended December 31, 2011
Water and Other Total
Waste Funds Roads Segments Consolidated
$ $ $ $
REVENUE
Taxation - 1,362,705 1,758,507 3,121,212
Sales of service and regulatory fees 1,343,089 34,298 304,524 1,681,911
Government transfer 155,418 695,517 1,554,887 2,405,822
Other 595,166 - 555,426 1,150,592
2,093,673 2,092,520 4,173,344 8,359,537
EXPENSES
Salaries, wages and employee benefits 320,103 582,044 945,472 1,847,619
Long-term debt interest 23,432 - 595 24,027
Materials 690,194 1,314,939 695,780 2,700,913
Contracted services 5,049 29,425 1,289,764 1,324,238
Amortization 398,287 701,758 126,254 1,226,299
Loss on transfer and disposal of assets 374,213 16,683 - 390,896
Transfer to others - - 44,347 44,347
1,811,278 2,644,849 3,102,212 7,558,339
ANNUAL SURPLUS (DEFICIT) 282,395 ,1552,329) 1,071,132 801,198
- 18 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Schedule of Segment Disclosure
Year Ended December 31, 2012
Unaudited Budget Actual Actual
WATER AND WASTE WATER 2012 2012 2011
$ $ $
Revenue
Sales of services and regulatory fees 1,193,671 1,429,785 1,343,089
Government transfers 133,756 133,776 155,418
Benefiting land owners 41,254 414,232 579,332
Other 16,858 23,384 15,834
Total Revenues 1,385,539 2,001,177 2,093,673
Expenses
Salaries, wages and employees benefits 274,890 276,927 320,103
Long-term debt interest 13,870 21,140 23,432
Materials 588,424 610,036 690,194
Contracted services, rents and financial expenses 30,371 143,883 5,049
Amortization - 461,478 398,287
Loss on transfer and disposal of assets - - 374,213
Total Expenditures 907,555 1,513,464 1,811,278
Annual Surplus 477,984 487,713 282.395
Unaudited Budget Actual Actual
ROADS 2012 2012 2011
$ $ $
Revenue
Taxation 1,096,483 1,096,483 1,362,705
Sales of services and regulatory fees 8,600 24,362 34,298
Government transfers 420,884 518,346 695,517
Total Revenues 1,525,967 1,639,191 2,092,520
Expenses
Salaries, wages and employees benefits 623,612 602,503 582,044
Materials 914,355 1,148,552 1,314,939
Contracted services and rents 28,000 23,849 29,425
Amortization - 829,594 701,758
Loss on transfer and disposal of assets - 31,012 16,683
Total Expenditures 1,565,967 2,635,510 2,644,849
Annual (Deficit) (40,000) (996,319) (552,329)
- 19 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Consolidated Schedule of Tangible Capital Assets
Year Ended December 31, 2012
Opening Ending Opening Ending Ending
Historical Historical Accumulated Accumulated Net
Cost Cost Amortization Amortization Book
Balance 2012 2012 2012 Balance Balance 2012 2012 2012 Balance Value
Jan 1/2012 Acquisitions Disposals Write-Offs Dec 31/2012 Jan 1/2012 Disposals Amortization Write-Offs Dec 31/2012 Dec 31/2012
ASSET TYPE
Infrastructure Related
Land 187,256 - - - 187,256 - - - - - 187,256
Buildings/Building Improvements 5,727,328 529 - - 5,727,857 1,636,226 - 164,578 - 1,800,804 3,927,053
Machinery and Equipment 2,590,051 63,836 228 - 2,653,659 1,288,403 228 116,126 - 1,404,301 1,249,358
Linear-Roadways 38,564,647 22,750 - - 38,587,397 10,794,281 - 738,548 - 11,532,829 27,054,568
Linear-Sewer and Water Services 20,193,490 238,211 - - 20,431,701 3,405,510 - 237,173 - 3,642,683 16,789,018
Infrastructure Related Total 67,262,772 325,326 228 - 67,587,870 17,124,420 228 1,256,425 - 18,380,617 49,207,253
General Capital
Land 916,444 - - - 916,444 - - - - - 916,444
Land Improvements 991,705 5,352 - - 997,057 345,738 - 42,844 - 388,582 608,475
Building/Building Improvements 2,344,355 1,253,743 - - 3,598,098 1,386,700 - 66,934 - 1,453,634 2,144,464
Machinery and Equipment 826,368 127,764 - - 954,132 200,706 - 50,710 - 251,416 702,716
Vehicle 1,363,946 223,531 137,870 - 1,449,607 527,519 89,357 79,095 - 517,257 932,350
General Capital Total 6,442,818 1,610,390 137,870 - 7,915,338 2,460,663 89,357 239,583 - 2,610,889 5,304,449
Total Capital Assets Sub-Total 73,705,590 1,935,716 138,098 - 75,503,208 19,585,083 89,585 1,496,008 - 20,991,506 54,511,702
Work In Progress 661,965 373,163 656,519 - 378,609 - - - - 378,609
Total Tangible Capital Assets 74,367,555 2,308,879 794,617 - 75,881,817 19,585,083 89,585 1,496,008 - 20,991,506 54,890,311
-20 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Consolidated Schedule of Tangible Capital Assets
Year-ended December 31, 2011
Opening Ending Opening Ending Ending
Historical Historical Accumulated Accumulated Net
Cost Cost Amortization Amortization Book
Balance 2011 2011 2011 Balance Balance 2011 2011 2011 Balance Value
Jan 1/2011 Acquisitions Disposals Write-Offs Dec 31/2011 Jan 1/2011 Disposals Amortization Write-Offs Dec 31/2011 Dec 31/2011
ASSET TYPE
Infrastructure Related
Land 187,256 - - - 187,256 - - - - - 187,256
Buildings/Building Improvements 5,718,370 8,958 - - 5,727,328 1,501,180 - 135,046 - 1,636,226 4,091,102
Machinery and Equipment 2,315,613 335,634 61,196 - 2,590,051 1,174,428 24,513 138,488 - 1,288,403 1,301,648
Linear-Roadways 38,215,205 349,442 - - 38,564,647 10,210,037 - 584,244 - 10,794,281 27,770,366
Linear-Seward and Water Services 20,778,003 - 584,513 - 20,193,490 3.395,903 210,301 219,908 - 3,405,510 16,787,980
Infrastructure Related Total 67,214,447 694,034 645,709 - 67,262,772 16,281,548 234,814 1,077,686 - 17,124,420 50,138,352
General Capital
Land 916,444 - - - 916,444 - - - - - 916,444
Land Improvements 566,016 425,689 - - 991,705 327,850 - 17,888 - 345,738 645,967
Buildings/Building Improvements 2,344,355 - - - 2,344,355 1,356,174 - 30,526 - 1,386,700 957,655
Machinery and Equipment 750,044 76,324 - - 826,368 162,300 - 38,406 - 200,706 625,662
Vehicle 1,363,946 - - - 1,363,946 465,722 - 61,797 - 527,519 836,427
General Capital Total 5,940,805 502,013 _ - - 6,442,818 2.312.046 - 148,617 - 2,460,663 3,982,155
Total Capital Assets Sub-Total 73,155,252 1,196,047 645,709 - 73,705,590 18,593,594 234,814 1,226,303 - 19,585,083 54,120,507
Work In Progress 221,639 638,516 198,190 - 661,965 - - - - - 661,965
Total Tangible Capital Assets 73,376,891 1,834,563 843,899 - 74,367,555 18,593,594 234,814 1,226,303 - 19,585,083 54,782,472
-21 -