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HomeMy WebLinkAboutFinancial Statements 1992 r c� poRi `SGLIL(A) I q CORPORATION OF THE VILLAGE OF PORT BURWELL Financial Statements Year Ended December 31, 1992 and Auditors' Report to the Members of Council, Inhabitants and Ratepayers CORPORATION OF THE VILLAGE OF PORT BURWELL INDEX OF THE CONSOLIDATED FINANCIAL REPORT DECEMBER 31, 1992 Consolidated Financial Statements Auditors' Report 1 Consolidated Statement of Operations 2 Consolidated Balance Sheet 3 Notes to the Consolidated Financial Statements 4 Trust Fund Auditors' Report 5 Statement of Continuity and Balance Sheet 6 Notes to the Financial Statements 7 1 Raven & Company Affiliated with Deloitte&Touche Raven & Company Chartered Accountants 136 Centre Street Telephone: (519) 631-8250 St. Thomas, Ontario Telecopier: (519) 631-8919 N5R 3A2 AUDITORS' REPORT To the Members of Council, Inhabitants and Ratepayers of the Corporation of the Village of Port Burwell: We have audited the consolidated balance sheet of the Corporation of the Village of Port Burwell as at December 31, 1992 and the consolidated statement of operations for the year then ended. These financial statements are the responsibility of the Village' 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 Corporation of the Village of Port Burwell as at December 31, 1992 and the results of its operations for the year then ended in accordance with the accounting principles disclosed in note 1 to the financial statements. /44‘ YdOW;" Chartered Accountants June 28, 1993 2 CORPORATION OF THE VILLAGE OF PORT BURWELL CONSOLIDATED STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1992 Budget Actual Actual Budget Actual Actual 1992 1992 1991 1992 1992 1991 SOURCES OF FINANCING: APPLIED TO: Taxation and user charges Current operations Residential and farm taxation $319,000 $323,023 $289,428 General government $218,163 $ 235,308 $211,491 Commercial and industrial Fire protection 39,400 39,606 34,461 taxation 71,000 73,803 68,346 Other protection to persons Business taxation 23,271 23,378 21,980 and property 5,600 13,890 7,569 Taxation from other Transportation services 111,033 93,264 87,039 governments 11,000 13,406 11,315 Sanitary sewers 110,000 106,590 132,901 Water and sewer billings 165,000 162,415 158,049 Waterworks system 55,000 57,133 48,329 User charges 174,535 171,871 129,969 Garbage collection 60,000 99,322 40,916 Recreation and cultural 763,806 767,896 679,087 services 50,800 75,271 97,146 Grants Planning and development 2, 500 12,775 16,218 Province of Ontario 173,998 188,156 203,746 Government of Canada 25,000 46,589 36,824 652,496 733,159 676,070 Other municipalities - 5,412 7,278 Capital operations Roadways 40,500 48,791 13,427 198,998 240,157 247,848 Street lighting 16,500 25,536 - Other Purchase of land - 37,000 - Sale of land 40,000 40,000 10,499 Harbour - - 4,976 Penalties and interest on taxes 8,800 7,892 7,163 Recreation and cultural Investment income 2,600 747 2,489 services - 24,146 2,330 Donations 9,250 7,330 - Fire fighting equipment 2,000 1,730 - Sanitary sewer system - 17,909 - 60,650 55,969 20,151 Other - 2,386 5,896 Deduct: Amounts received or 59,000 157,498 26,629 receivable for County and school boards (Note 2) (251,889) (256,179) (238,333) Net appropriations to reserves and reserve funds 3,000 3,000 6,000 MUNICIPAL FUND BALANCES, MUNICIPAL FUND BALANCES, BEGINNING OF YEAR (Note 5) END OF YEAR (Note 5) (To be recovered from) (To be recovered from) taxation or user charges (57,069) (57,069) (57,123) taxation or user charges - (105,883) (57,069) Capital operations not yet permanently financed - (37,000) - - (142,883) (57,069) Total financing available Total applications during the year $714,496 $750,774, $651,630 during the year $714,496 $750,774 $651,630 The accompanying notes are an integral part of this financial statement. 3 CORPORATION OF THE VILLAGE OF PORT BURWELL CONSOLIDATED BALANCE SHEET DECEMBER 31. 1992 1992 1991 ASSETS UNRESTRICTED Cash $ 14, 418 $ 30, 338 Taxes receivable 76, 727 63, 555 User charges receivable 30, 273 31, 084 Accounts receivable 54, 484 29, 861 175, 902 154, 838 RESTRICTED Cash 6, 000 3, 000 $181. 902 $157, 838 LIABILITIES CURRENT LIABILITIES Temporary loans $232, 000 $ 80, 000 Accounts payable and accrued liabilities 40, 285 85, 282 Other current liabilities 1, 193 1, 318 273, 478 166, 600 FUND BALANCES (TO BE RECOVERED FROM) TAXATION OR USER CHARGES (Note 5) ( 105, 883) ( 57, 069) CAPITAL OPERATIONS NOT YET PERMANENTLY FINANCED (Note 5) (37, 000) - RESERVES (Note 6) 45, 307 45, 307 RESERVE FUNDS (Note 6) 6, 000 3, 000 $181, 902 $157, 838 4 - i CORPORATION OF THE VILLAGE OF PORT BURWELL NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 1992 1. ACCOUNTING POLICIES The consolidated financial statements of the Corporation of the Village of Port Burwell are the representation of management prepared in accordance with accounting policies prescribed for Ontario municipalities by the Ministry of Municipal Affairs. Since precise determination of many assets and liabilities is dependent upon future events, the preparation of periodic financial statements necessarily involves the use of estimates and approximations. These have been made using careful judgements. (a) Basis of Consolidation ( i) Consolidated Statements These consolidated statements reflect the assets, liabilities, sources of financing and expenditures of the revenue fund, capital fund, reserve funds and reserves and include the activities of all committees of Council and the following boards and municipal enterprises which are under the control of Council: Port Burwell Waterworks Port Burwell Recreation, Parks and Community Centre Board Port Burwell Community and Historical Board All interfund assets and liabilities and sources of financing and expenditures have been eliminated with the exception of loans or advances between reserve funds and any other fund of the municipality and the resulting interest income and expenditures. ( ii) Non-Consolidated Entities There are no non-consolidated entities. ( iii) Accounting for County and School Board Transactions (net) The taxation, other revenues, expenditures, assets and liabilities with respect to the operations of the school boards and the County of Elgin are not reflected in the municipal fund balances of these financial statements. Overlevies ( underlevies) are reported on the "Consolidated Balance Sheet" as "other current liabilities" ( "other current assets"). 4 - ii CORPORATION OF THE VILLAGE OF PORT BURWELL NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 1992 1. ACCOUNTING POLICIES ( continued) ( iv) Trust Funds The trust fund and its related operations administered by the Village is not consolidated, but is reported separately on the "Trust Fund Statement of Continuity and Balance Sheet". ( b) Basis of Accounting ( i) Accrual Accounting Sources of financing and expenditures are reported on the accrual basis of accounting. The accrual basis of accounting recognizes revenues as they become available and measurable; expenditures are recognized as they are incurred and measurable as a result of receipt of goods or services and the creation of a legal obligation to pay. ( ii) Fixed Assets The historical cost and accumulated depreciation for fixed assets are not recorded for municipal purposes. Fixed assets are reported as an expenditure on the "Consolidated Statement of Operations" in the year of acquisition. 2. OPERATIONS OF SCHOOL BOARDS AND THE COUNTY OF ELGIN Further to note 1( a)( iii) , the taxation, other revenues, expenditures and overlevies (underlevies) of the school boards and the County of Elgin are comprised of the following: School Boards County Taxation $186, 643 $69, 536 Requisitions 186, 769 69, 535 Overlevies ( underlevies) for the year (126) 1 Overlevies ( underlevies) beginning of year 1, 319 (1) Overlevies ( underlevies) end of year $ 1, 193 $ - 4 - iii CORPORATION OF THE VILLAGE OF PORT BURWELL NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 1992 3. LIABILITY FOR VESTED SICK LEAVE BENEFITS Under the sick leave benefit plan, unused sick leave can accumulate and employees may become entitled to a cash payment when they leave the Village' s employment. The liability for these accumulated days, to the extent that they have vested and could be taken in cash by an employee on termination, amounted to $1, 425 (1991 - $10, 509) at the end of the year. No provision has been made for this liability in the financial statements. 4. TRUST FUND The trust fund administered by the Village amounting to $114, 779 ( 1991 - $113, 425) has not been included in the "Consolidated Balance Sheet" nor have its operations been included in the "Consolidated Statement of Operations". 5. MUNICIPAL FUND BALANCES AT THE END OF THE YEAR The balances on the "Consolidated Statement of Operations" of municipal (deficit) of ( $142, 883) (1991 - ($57, 069) ) at the end of the year are comprised of the following: 1992 1991 For general (increase) of taxation $(110, 622) $(72, 984) For general reduction (increase) of user charges: - Water (2, 789) 3, 558 - Recreation 6, 395 5, 126 - Museum 1, 133 7, 231 (105, 883) (57, 069) Acquisition of fixed assets to be recovered through taxation or user charges ( 37, 000) - $(142, 883) $( 57. 069) 6. RESERVES AND RESERVE FUNDS The total balance of reserves and reserve funds of $45, 307 (1991 - $45, 307) and $6, 000 ( 1991 - $3, 000) respectively are made up of the following: 1992 1991 Reserve set aside for specific purpose by Council For working capital $42, 307 $42, 307 For waterworks purposes 3. 000 3, 000_ $45, 307 $45, 307 Reserve funds set aside for specific purpose by Council For acquisition of a fire truck $ 6, 000 $ 3, 000 4 - iv CORPORATION OF THE VILLAGE OF PORT BURWELL NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 1992 7. CONTRACTUAL OBLIGATION - MINISTRY OF THE ENVIRONMENT In accordance with a service agreement entered into by the Village with the Ministry of Environment, the existing sewage and water systems are owned and operated by the Ministry. The Village is obligated to meet all operating costs and repay the long-term liabilities related to these projects. Included in the "Consolidated Statement of Operations" are the 1992 charges from the Ministry for water of $34, 935 and for sewage of $89, 664. The "Consolidated Balance Sheet" does not reflect any assets or liabilities pertaining to the sewage or water systems except to the extent of service charges due to the Ministry. Information received from the Ministry as at March 31, 1992, indicates the following: Total Outstanding Accumulated 1992 Debt Long-Term ( Deficit) Charges Liabilities Water System $( 27, 047) $4, 280 $43, 279 The operating surplus and long-term liabilities indicated above are not reflected in the accompanying financial statements. Raven & Company Affiliated with Deloitte&Touche 5 Raven &Company Chartered Accountants 136 Centre Street Telephone: (519) 631-8250 St. Thomas, Ontario Telecopier: (519) 631-8919 N5R 3A2 AUDITORS' REPORT To the Members of Council, Inhabitants and Ratepayers of the Corporation of the Village of Port Burwell: We have audited the balance sheet of the OHRP trust fund of the Corporation of the Village of Port Burwell as at December 31, 1992 and the statement of continuity of trust fund for the year then ended. These financial statements are the responsibility of the Village' 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 OHRP trust fund of the Village of Port Burwell as at December 31, 1992 and the continuity of trust fund for the year then ended in accordance with accounting principles disclosed in note 1 to the financial statements. /(f4447 Chartered Accountants June 28, 1993 6 CORPORATION OF THE VILLAGE OF PORT BURWELL OHRP TRUST FUND STATEMENT OF CONTINUITY YEAR ENDED DECEMBER 31, 1992 1992 1991 BALANCE AT THE BEGINNING OF THE YEAR $113, 425 $111, 374 RECEIPTS Interest earned 2, 239 1, 718 Other 1, 065 2, 651, 3, 304 4, 369 DISBURSEMENTS Ontario Home Renewal Program - loans forgiven 1, 200 2, 318 Village of Port Burwell - administration fee 750 - 1, 950 2, 318 BALANCE AT THE END OF THE YEAR $114, 779 $113, 425 BALANCE SHEET DECEMBER 31, 1992 ASSETS CASH $ 71, 782 $ 70, 023 LOANS RECEIVABLE 42, 997 43, 402 $114, 779 $113, 425 FUND BALANCE ONTARIO HOME RENEWAL PROGRAM $114, 779 $113, 425 The accompanying notes are an integral part of this financial statement. 7 CORPORATION OF THE VILLAGE OF PORT BURWELL OHRP TRUST FUND NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31. 1992 1. ACCOUNTING POLICY Basis of Accounting, The accrual basis of accounting is used for the trust fund. 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 homes 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, 1992 comprise repayable loans of $37, 132 ( 1991 - $36, 337) and forgivable loans of $5, 865 ( 1991 - $7, 065). 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. 1992 FINANCIAL INFORMATION RETURN MUNICIPALITY: Village of Port Burwell in the Region, County or District of: Elgin DECLARATION OF THE MUNICIPAL TREASURER Pursuant to the determination of grants under the Ontario Unconditional Grants Act,and to the information required by the Province under the Municipal Affairs Act,the following schedules are attached: Attached 1 Analysis of Revenue Fund Revenues X 2LT Analysis of Taxation 2UT Analysis of Upper Tier Requisitions and Direct Charges N/A 2MA Analysis of Taxation in Merged Areas NLA 3 Analysis of Current Revenue for Specific Functions X 4 Analysis of Revenue Fund Expenditures 5 Analysis of Capital Operations X 6 Analysis of Capital Grants and Own Expenditures X 7 Analysis of Net Long Term Liabilities By Function NLA 8 Analysis of Long Term Liabilities and Commitments 9LT Continuity of Upper Tier and School Board Levies X 10 Continuity of Reserves and Reserve Funds X 11 Analysis of Consolidated Year End Balances X 12 Statistical Data 13 Grant Information X 14 Grant Information NLA The schedules have been drawn up in accordance with the instructions provided by the Ministry of Municipal Affairs.They represent the consolidated financial activities of the municipality,all local boards,including joint boards where applicable and any other local corporate entities set up by the municipality to provide services to ratepayers.The consolidated local boards and entities are: .Port Burwell Waterworks • •Port Burwell Recreation, Parks and • Community Centre Board •Port Burwell Community and • • Historical Board • • • • Trust funds administered by the municipality and its local boards, harbour commissions, humane societies, municipal non-profit housing corporations,provincial-municipal housing authorities,sinking funds,retirement or pension plan funds, school boards, conservation authorities, children's aid societies, district health councils, municipal hospitals and gas,telephone and hydro utilities are not consolidated. The schedules have been prepared by Raven & Company (Auditor's firm or name of Municipality) Questions regarding the information contained in them should be addressed to Mr. Brad Millson at (519) 631-825.0 (Area code and telephone) Date. /L/G.Z.9. /...g.-3....1993 mac_ Mu ' pal Treasurer Raven & Company Affiliated with Deloitte&Touche Raven &Company Chartered Accountants 136 Centre Street Telephone: (519) 631-8250 St. Thomas, Ontario Telecopier: (519) 631-8919 N5R 3A2 ACCOUNTANTS' REPORT To the Ministry of Municipal Affairs: Our audit of the consolidated financial statements of the Corporation of the Village of Port Burwell for the year ended December 31, 1992 was made for the purpose of forming an opinion on the consolidated financial statements referred to in our auditors' report to the Members of Council, Inhabitants and Ratepayers, dated March 10, 1993. Schedules 1 to 11 of the 1992 Financial Information Return have not been prepared on the same basis as the consolidated financial statements. For the purposes of this report we have performed, at your request, the following procedures in connection with Schedules 1 to 11 of the Financial Information Return of the Corporation of the Village of Port Burwell for the year ended December 31, 1992: ( a) We have compared the amounts disclosed on these schedules to the books and records of the Village of Port Burwell and found them to be in agreement; ( b) We have added and cross-added all schedules and found them to be arithmetically correct; and ( c) We have checked the cross-references indicated in the "Cross- Reference to Other Schedules" section for each of the above-noted schedules, as outlined in the "Instructions for Completing the 1992 Financial Information Return", and found all such cross-references to be in agreement. The above-noted procedures do not constitute an audit of these schedules. Therefore, we do not express an opinion on Schedules 1 to 11 of the 1992 Financial Information Re rn. Chartered Accountants ii#447 St. Thomas, Ontario March 10, 1993