HomeMy WebLinkAboutFinancial Statements 2010 THE CORPORATION OF THE
MUNICIPALITY OF BAYHAM
Consolidated Financial Statements
December 31, 2010
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Consolidated Financial Statements
Year Ended December 31, 2010
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 - 15
Consolidated Schedule of Segment Disclosure 16 - 17
Schedule of Segment Disclosure 18
Consolidated Schedule of Tangible Capital Assets 19 - 20
G R A H A P4 William A.Graham* John M.Scott* Alan R. Enns*
Robert B. Foster* James G. Frederick* Michael S.Stover*
SCOTT Michael J.MacKinnon* Betty A.Gropp William J. Luyks*
ENNS LLP
• 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)6337009 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, 2010, 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
generally accepted accounting principles 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 financial 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 financial statements present fairly, in all material respects, the statement of financial position
of The Corporation of the Municipality of Bayham as at December 31, 2010, and the statements of operations and
accumulated surplus, changes in net assets, and cash flow for the year then ended in accordance with Canadian generally
accepted accounting principles.
St.Thomas,Ontario 91411404scot. Eaf2Q 44
December 15,2011 CHARTERED ACCOUNTANTS
Licensed Public Accountants
- 1 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Consolidated Statement of Financial Position
As At December 31, 2010
2010 2009
ASSETS
FINANCIAL ASSETS
Cash 662,001 537,297
Investments (Note 2) 2,805,383 3,103,678
Taxes receivable (Note 3) 794,470 614,092
Accounts receivable 727,594 574,344
4,989,448 4,829,411
LIABILITIES
Temporary bank advances 995,000 800,000
Deferred revenue - obligatory reserve funds (note 9) 312,865 243,126
Accounts payable and accrued liabilities 567,166 836,061
Net long-term liabilities (note 4) 378,945 581,037
2,253,976 2,460,224
NET FINANCIAL ASSETS 2,735,472 2,369,187
NON-FINANCIAL ASSETS
Tangible capital assets (Note 6,pages 19, 20) 54,783,297 54,017,780
Inventories and prepaid expenses 24,143 24,292
54,807,440 54,042,072
ACCUMULATED SURPLUS (NOTE 7) 57,542,912 56,411,259
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, 2010
Unaudited Budget Actual Actual
2010 2010 2009
$ $ $
REVENUES
Property taxation 2,807,391 2,815,073 2,643,720
Taxation from other governments 53,723 53,723 51,779
User charges 1,512,170 1,472,934 1,343,735
Transfer payments
Federal 1,221,792 1,328,849 99,689
Provincial 1,334,123 1,247,295 1,449,821
Other municipalities 431,057 457,458 514,414
Investment income 89,600 109,607 162,778
Penalties and interest on taxes 74,000 96,299 84,905
Recoveries from benefiting landowners 206,397 240,397 227,117
Other 12,000 43,165 61,047
Total Revenues 7,742,253 7,864,800 6,639,005
EXPENSES
General government 677,231 698,596 699,412
Protection to persons and property 1,261,245 1,176,688 1,223,489
Transportation services 1,390,699 2,132,112 2,413,094
Environmental services 1,378,133 1,829,219 1,701,097
Health services 41,437 40,790 152,019
Social and family services 11,275 4,916 6,256
Recreation and cultural services 309,656 274,058 373,915
Planning and development 558,663 576,768 275,191
Total Expenses (Note 13) 5,628,339 6,733,147 6,844,473
ANNUAL SURPLUS 2,113,914 1,131,653 (205,468)
ACCUMULATED SURPLUS,
BEGINNING OF YEAR 56,411,259 56,411,259 56,616,727
ACCUMULATED SURPLUS, END OF YEAR(Note 7) 58,525,173 57,542,912 56,411,259
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, 2010
2010 2009
$ $
ANNUAL SURPLUS 1,131,653 (205,468)
Acquisition of tangible capital assets (1,869,289) (2,816,107)
Amortization of tangible capital assets 1,102,238 1,344,045
Proceeds on disposal of tangible capital assets 1,534 -
Change in inventories,prepaid expenses and deferred charges 149 5,066
INCREASE (DECREASE) IN NET FINANCIAL ASSETS 366,285 (1,672,464)
NET FINANCIAL ASSETS, BEGINNING OF YEAR 2,369,187 4,041,651
NET FINANCIAL ASSETS,END OF YEAR 2,735,472 2,369,187
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, 2010
2010 2009
$ $
OPERATING ACTIVITIES
Annual surplus 1,131,653 (205,468)
Add(deduct)items not involving cash:
Amortization of tangible capital assets 1,102,238 1,344,045
2,233,891 1,138,577
Change in non-cash assets and liabilities related to operations:
(Increase) decrease in taxes receivable (180,378) 31,441
(Increase) decrease in accounts receivable (153,250) (191,574)
(Increase) decrease in inventories and prepaid expenses 149 5,066
Decrease in temporary bank advances 195,000 800,000
Increase (decrease) in accounts payable and accrued liabilities (268,895) 374,361
Increase (decrease) in deferred revenue - obligatory reserve funds 69,739 133,381
Net change in cash from operating activities 1,896,256 2,291,252
CAPITAL
Acquisition of tangible capital assets (1,869,289) (2,816,107)
Proceeds on disposal of tangible capital assets 1,534 -
Net change in cash from capital (1,867,755) (2,816,107)
INVESTING
Investments 298,295 (991,163)
Net change in cash from investing 298,295 (991,163)
FINANCING
Long-term debt repayment (202,092) (189.955)
Net change in cash from financing (202,092) (189,955)
NET CHANGE IN CASH AND CASH EQUIVALENTS 124,704 (1,705,973)
OPENING CASH AND CASH EQUIVALENTS 537,297 2,243,270
CLOSING CASH AND CASH EQUIVALENTS 662,001 537,297
SUPPLEMENTARY INFORMATION:
Cash paid for interest on debt 33,282 45,420
Cash received for interest on investments 109,607 162,778
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, 2010
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 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 Community Centre Boards
-Various Cemetery Boards
- Museum Board
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, 2010
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 Municipalities 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, 2010
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, 2010
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 2010 the Municipality received $ 2,868,796 (2009 - $2,695,499) 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.).
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.
- 9 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2010
2. INVESTMENTS
Investments are comprised of the following: 2010 2009
$ $
Cost Market Cost Market
One fund pooled bond securities 2,805,383 2,807,159 3,103,678 3123 210
3. TAXES RECEIVABLE
Taxes receivable are reported net of allowance for doubtful accounts. Balances as at December 31
were as follows:
2010 2009
$ $
Taxes receivable 746,396 566,018
Penalties and interest 96,087 96,087
Allowance for doubtful accounts (48,013) (48,013)
794,470 614,092
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:
2010 2009
$ $
Total long-term liabilities incurred by the municipality,
including those incurred on behalf of benefiting landowner 378,945 513,919
Principal repayments are summarized as follows:
2011 2012 2013 2014 2015 Beyond Total
Recoverable From $ $ $ $ $ $ $
General tax revenue - - - - - - -
Benefiting landowners 214,947 115,654 6,943 7,327 7,833 26.241 378.945
214,947 115,654 6,943 7,327 7,833 26.241 378.945
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 2010 amounted to $33,282 (2009 - $45,420)
- 10 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2010
5. OPERATION OF SCHOOL BOARDS AND THE COUNTY OF ELGIN
During 2010, 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 1,399,509 2,561,738
Share of payments in lieu of taxes - 24,509
Amounts requisitioned 1,399,509 2,586,247
6. TANGIBLE CAPITAL ASSETS Net Book Value
2010 2009
$ $
General
Land 916,444 916,444
Buildings 988,181 1,016,077
Vehicles 898,224 860,673
Machinery and equipment 587,744 259,008
Land improvements 238,166 250,878
Infrastructure
Plants and facilities 4,404,446 3,968,217
Roads 28,005,168 28,233,410
Underground and other networks 17,382,100 16,612,364
Machinery and equipment 1,141,185 1,182,387
54,561,658 53,299,458
Assets under construction 221,639 718,322
54,783,297 54,017,780
For additional information, see the Consolidated Schedule of Tangible Capital Assets (Schedule 1).
During the year there were no write-downs of assets (2009 - $nil). In addition, roads and
underground networks contributed to the Municipality totalled $nil (2009 - $nil) and were
capitalized at their fair value at the time of receipt.
- 11 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2010
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 132,971 100,822
Cemetery boards 93,839 98,845
Benefiting landowners (461,305) (167,977)
(234,495) 31,690
Invested in tangible capital assets 54,783,297 54,017,780
Capital fund (1,069,993) (1,471,980)
Reserves 3,348,203 3,503,492
Reserve funds 1,094,845 911,314
57,921,857 56,992,296
AMOUNTS TO BE RECOVERED
Net long-term debt (378,945) (581,037)
ACCUMULATED SURPLUS 57,542,912 56,411,259
RESERVES AND RESERVE FUNDS CONSIST OF THE FOLLOWING:
Reserves set aside for specific purposes by Council:
- for working capital 404,153 394,153
- for capital purposes 1,092,779 1,415,328
- for waterworks purposes 617,003 458,323
- for rate stabilization 602,670 602,670
- for other purposes 631,598 633,018
Total reserves 3,348,203 3,503,492
Reserve funds set aside for specific purposes by Council:
- for water system 103,043 103,622
- for construction of sanitary sewers 839,047 691,047
- for recreation and cultural service purposes 145,511 109,666
- for other purposes 7,244 6,979
Total reserve funds 1,094,845 911,314
- 12 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2010
8. TRUST FUNDS
Trust funds administered by the municipality amounting to $230,100 (2009 - $228,800) 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:
2010 2009
$ $
Development Charges 27,021 26,032
Gasoline tax 253,215 189,995
Parkland 32,628 27,099
312,864 243,126
10. BUDGET FIGURES
The operating budget approved by the council of the The Corporation of the Municipality of Bayham
for 2010 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.
11. CONTINGENT LIABILITIES
As at December 31, 2010 certain legal actions are pending against the municipality. An estimate of
any contingency cannot be made since the outcome of these matters is indeterminate at this time.
- 13 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2010
12. PUBLIC SECTOR SALARY DISCLOSURE
In 2010, 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.
13. SUPPLEMENTARY INFORMATION:
2010 2009
S $
Current fund expenses by object:
Salaries, wages and employees benefits 1,745,241 1,757,199
Long-term debt interest expense 33,282 45,420
Materials 2,503,529 2,437,013
Contracted services 1,305,338 1,219,329
Rents and financial expenses 301 5,194
Amortization expense 1,102,238 1,344,045
External transfers to others 43,218 36,273
6,733,147 6,844,473
14. SEGMENTED INFORMATION
The Municipality of Bayham 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.
- 14 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Notes to the Consolidated Financial Statements
Year Ended December 31, 2010
14. SEGMENTED INFORMATION (CONTINUED)
Other funds and Corporation
This segment includes the remaining departments and activities of the Corporation. 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.
- 15 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Consolidated Schedule of Segment Disclosure
Year Ended December 31, 2010
Water and Other Funds & Total
Waste Funds Roads Corporation Consolidated
$ $ $ $
REVENUE
Taxation - 687,914 2,180,882 2,868,796
Sales of service and regulatory fees 1,143,198 4,699 325,037 1,472,934
Government transfer 64,636 591,150 2,377,816 3,033,602
Other 254,391 - 235,077 489,468
1,462,225 1,283,763 5,118,812 7,864,800
EXPENSES
Salaries, wages and employee benefits 272,420 547,835 924,986 1,745,241
Long-term debt interest expense 32,316 - 966 33,282
Materials 668,707 948,961 885,861 2,503,529
Contracted services 31,145 25,716 1,248,778 1,305,639
Amortization 376,983 609,600 115,655 1,102,238
Transfer to others - - 43,218 43,218
1,381,571 2,132,112 3,219,464 6,733,147
ANNUAL SURPLUS 80,654 (848,349) 1,899,348 1,131,653
- 16 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Consolidated Schedule of Segment Disclosure
Year Ended December 31, 2009
Water and Other Funds & Total
Waste Funds Roads Corporation Consolidated
$ $ $ $
REVENUE
Taxation - 765,905 1,929,594 2,695,499
Sales of service and regulatory fees 988,860 21,687 333,188 1,343,735
Government transfer 40,042 520,126 1,503,756 2,063,924
Other 244.145 - 291,702 535,847
1.273.047 1.307.718 4.058,240 6,639,005
EXPENSES
Salaries, wages and employee benefits 248,407 515,629 993,163 1,757,199
Long-term debt interest expense 44,110 - 1,310 45,420
Materials 565,731 917,380 953,902 2,437,013
Contracted services 18,679 21,243 1,184,600 1,224,522
Amortization 381,964 843,806 118,276 1,344,046
Transfer to others - - 36.273 36,273
1,258,891 2,298,058 3,287,524 6,844,473
ANNUAL SURPLUS (DEFICIT) 14,156 (990,340) 770,716 (205,468)
- 17 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Schedule of Segment Disclosure
Year Ended December 31, 2010
Unaudited Budget Actual Actual
WATER AND WASTE WATER 2010 2010 2009
$ $ $
Revenue
Sales of services and regulatory fees 1,205,567 1,143,198 988,860
Government transfers 64,616 64,636 40,042
Benefiting land owners 206,397 240,397 221,514
Other 15.258 13,994 22,631
Total Revenues 1,491,838 1,462,225 1,273,047
Expenses
Salaries, wages and employees benefits 271,909 272,420 248,407
Long-term debt interest expense 32,316 32,316 44,110
Materials 628,943 668,707 565,731
Contracted services, rents and financial expenses 18,527 31,145 18,679
Amortization - 376,983 381,964
Total Expenditures 951,695 1,381,571 1,258,891
Annual Surplus (Deficit) 540,143 80,654 14,1.56
Unaudited Budget Actual Actual
ROADS 2010 2010 2009
$ $ $
Revenue
Taxation 687,914 687,914 765,905
Sales of services and regulatory fees 20,000 4,699 21,687
Government transfers 752,657 591,150 520,126
Total Revenues 1,460,571 1,283,763 1,307,718
Expenses
Salaries, wages and employees benefits 477,182 547,835 515,629
Materials 952,389 948,961 917,380
Contracted services 31,000 25,716 21,243
Amortization - 609,600 843,806
Total Expenditures 1,460,571 2,132,112 2,298,058
Annual (Deficit) Surplus - (848,349) (990,340)
- 18 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Consolidated Schedule of Tangible Capital Assets
Year Ended December 31, 2010
Opening Ending Opening Ending Ending
Historical Historical Accumulated Accumulated Net
Cost Cost Amortization Amortization Book
Balance 2010 2010 2010 Balance Balance 2010 2010 2010 Balance Value
Jan 1/2010 Acquisitions Disposals Write-Offs Dec 31/2010 Jan 1/2010 Disposals Amortization Write-Offs Dec 31/2010 Dec 31/2010
ASSET TYPE
Infrastructure Related
Land 187,256 - - - 187,256 - - - - - 187,256
Buildings/Building Improvements 5,139,811 578,559 - - 5,718,370 1,358,850 - 142,330 - 1,501,180 4,217,190
Machinery and Equipment 2,221,356 102,993 8,736 - 2,315,613 1,038,969 7,202 142,661 - 1,174,428 1,141,185
Linear-Roadways 37,941,133 274,072 - - 38,215,205 9,707,723 - 502,314 - 10,210,037 28,005,168
Linear-Sewer and Water Services 19,808,988 969,015 - - 20,778,003 3,196,624 - 199,279 - 3,395,903 17,382,100
Infrastructure Related Total 65,298,544 1,924,639 8,736 - 67,214,447 15,302,166 7,202 986,584 - 16,281,548 50,932,899
General Capital
Land 916,444 - - - 916,444 - - - - - 916,444
Land Improvements 566,016 - - - 566,016 315,138 - 12,712 - 327,850 238,166
Building/Building Improvements 2,344,355 - - - 2,344,355 1,328,278 - 27,896 - 1,356,174 988,181
Machinery and Equipment 396,211 353,833 - 750,044 137,203 - 25,097 - 162,300 587,744
Vehicle 1,276,446 87,500 - - 1,363,946 415,773 - 49,949 - 465.722 898,224
General Capital Total _5,499,472 441,333 - - 5,940,805 2,196,392 - 115,654 - 2,312,046 3,628,759
Total Capital Assets Sub-Total 70,798,016 2,365,972 8,736 - 73,155,252 17,498,558 7,202 1,102,238 - 18,593,594 54,561,658
Work In Progress 718,322 49,928 546,611 - 221,639 - - - - - 221,639
Total Tangible Capital Assets 71,516,338 2,415,900 555,347 - 73,376,891 17,498,558 7,202 1,102,238 - 18,593,594 54,783,297
-19 -
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
Consolidated Schedule of Tangible Capital Assets
Year-ended December 31, 2008
Opening Ending Opening Ending Ending
Historical Historical Accumulated Accumulated Net
Cost Cost Amortization Amortization Book
Balance 2009 2009 2009 Balance Balance 2009 2009 2009 Balance Value
Jan 1/2009 Acquisitions Disposals Write-Offs Dec 31/2009 Jan 1/2009 Disposals Amortization Write-Offs Dec 31/2009 Dec 31/2009
ASSET TYPE
Infrastructure Related
Land 187,256 - - - 187,256 - - - - - 187,256
Buildings/Building Improvements 5,079,521 60,290 - - 5,139,811 1,216,808 - 142,042 - 1,358,850 3,780,961
Machinery and Equipment 2,027,687 197,665 3,996 - 2,221,356 893,816 3,996 149,149 - 1,038,969 1,182,387
Linear-Roadways 37,510,498 430,635 - - 37,941,133 9,005,408 - 702,315 - 9,707,723 28,233,410
Linear-Seward and Water Services 18,978,914 830,074 - - 19,808,988 2,997,667 - 198.957 - 3,196,624 16,612,364
Infrastructure Related Total 63,783,876 1,518,664 3,996 - 65,298,544 14,113,699 3,996 1,192,463 - 15,302,166 49,996,378
General Capital
Land 916,444 - - - 916,444 - - - - - 916,444
Land Improvements 469,901 96,115 - - 566,016 302,426 - 12,712 - 315,138 250,878
Buildings/Building Improvements 2,170,696 173,659 - - 2,344,355 1,280,382 - 47,896 - 1,328,278 1,016,077
Machinery and Equipment 373,386 22,825 - - 396,211 112,106 - 25,097 - 137,203 259,008
Vehicle 975.416 361,301 60,271 - 1,276.446 410.167 60.271 65,877 - 415.773 860,673
General Capital Total 4,905,843 653,900 60,271 - 5,499,472 2,105,081 60,271 151,582 - 2,196,392 3,303,080
Total Capital Assets Sub-Total 68,689,719 2,172,564 64,267 - 70,798,016 16,218,780 64,267 1,344,045 - 17,498,558 53,299,458
Work In Progress 74,779 643,543 - - 718,322 - - - - - 718,322
Total Tangible Capital Assets 68,764,498 2,816,107 64,267 - 71,516,338 16,218,780 64,267 1,344,045 - 17,498,558 54,017,780
-20 -