CORPORATION OF THE TOWNSHIP OF RAMARA 2009 FINANCIAL STATEMENTS NETHERCOTT & COMPANY

Transcription

1 2009 FINANCIAL STATEMENTS NETHERCOTT & COMPANY

2 C C INDEX Schedule I Notes to Financial Statements 613 Consolidated Statement of Cash Flows 5 Consolidated Statement of Changes in Net Financial Assets 4 Consolidated Statement of Operations 3 Consolidated Statement of Financial Position FINANCIAL STATEMENTS PAGE Auditors Report I Schedule NETHERCOTT & COMPANY of Tangible Capital Assets 14

3 April 26, 2010 To The Members of Council, North York, Ontario Inhabitants and Ratepayers require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are We have audited the consolidated statement of financial position of the CORPORATION OF THE TOWNSHIP We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards 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 Licensed Public Accountants and significant estimates made by management, as well as evaluating the overall financial statement presentation. Chartered Accountants management. Our responsibility is to express an opinion on these financial statements based on our audit. cash flows for the year then ended. These financial statements are the responsibility of the Township s of the Corporation of the AUDITORS REPORT OF RAMARA as at December 31, 2009 and the consolidated statements of operations, change in net debt and position of the Township as at December 31, 2009 and the results of its operations and changes in its financial position for the year then ended in accordance with Canadian generally accepted accounting principles. Paul W.B. Nethercott R. Bruce Nethercott Fax: Tel: In our opinion, these consolidated financial statements present fairly, in all material respects, the financial Chartered Accountants North York, Ontario M2J 4V6 John M. Quigg NETHERCOTT & COMPANY 250 Consumers Road, Suite 800 TOWNSHIP OF RAMARA 1

4 C Cash (Note3) $ 812,858 $ 1,563,050 Taxes receivable 2,533,480 2,141,987 FINANCIAL ASSETS ACTUAL ACTUAL The accompanying notes are an integral part of these financial statements. 53,804,979 49,597,294 Tangible capital assets (Note 7) 52,585,409 48,405,421 Prepaid expense 65,404 93,692 12,082,785 11,695,176 Accounts payable and accrued liabilities 3,015,583 2,414,973 7,261,978 7,077,973 Accounts receivable 1,227, ,574 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2009 Longterm receivables (Note 4) McNabb drain assessment 194, ,161 Brechin sewers assessment 2,493,422 2,621,201 FINANCIAL LIABILITIES Deferred revenue obligatory reserves (Note 6) 644, ,351 Amortizing debentures (Note 5) 8,422,862 8,560,852 NET DEBT NONFINANCIAL ASSETS Inventory of land held for resale 1,154,166 1,098,181 ACCUMULATED SURPLUS (Note 2) $ 48,984,172 $ 44,980,091 Approved by: NETHERCOTT & COMPANY 2

5 NETHERCOT & COMPANY 3 REVENUE (Unaudited) BUDGET ACTUAL ACTUAL Province of Ontario 2,624,845 2,249,253 3,344,711 County of Simcoe 1, Penalty and interest on taxes 285, , ,314 Protection to persons and property 2,118,334 1,953,122 1,961,306 Environmental services 1,825,777 1,914,273 1,678,136 Protection to persons and property 189, ,823 annual User charges 3,074,755 2,953,461 6,196,582 Grants Government of Canada 409, ,763 36,561 Other 78,800 77, ,880 General government 1,994,233 1,905,178 1,482,609 Transportation services 2,729,700 1,950,087 1,614,895 Recreation and cultural services 1,031, , ,229 Accumulated surplus, beginning of year 44,980,091 38,370,555 The accompanying notes are an integral part of these financial statements. Health services ,533 37,600 ACCUMULATED SURPLUS, END OF YEAR $ 48,984,172 $ 44,980,091 ANNUAL SURPLUS 3,197,475 4,004,081 6,609,536 7,424 General government 55,500 82,957 2,372,609 CONSOLIDATED STATEMENT OF OPERATIONS Net municipal taxation (Note 8) $ 5,762,349 $ 5,741,865 $ 5475,544 From Deferred Revenue 579, , ,832 Planning and development 110, , ,507 EXPENDITURE (Note 11) Amortization 9, ,964,181 9,728,962 Planning and development 205 Health services 6,335 Environmental services 706, ,324 Transportation services 871, ,564 Recreation and cultural services 119, ,677 13,055,719 14,968,262 16,338,498 Other 7,000 24,394 2,120 Donated tangible capital assets Aggregate Resources Act Investment income 72,170 44,896 52,523 fees 160, , ,935

6 NETHERCOTT & COMPANY 4 C C Loss on sale of tangible capital assets The accompanying notes are an integral part of these financial statements. NET DEBT, END OF YEAR $ (4,820,807) $ (4,617,203) CONSOLIDATED STATEMENT OF CHANGE IN NET DEBT BUDGET ACTUAL ACTUAL Acquisition of tangible capital assets (4,919,030) (6,193,627) (10,277,688) Amortization of tangible capital assets INCREASE IN NET DEBT FOR YEAR (1,716,555) (203,604) (2,926,256) Net debt, beginning of year (4,617,203) (1,690,947) Proceeds on sale of tangible capital assets 5,000 8,320 36,214 Decrease (increase) in prepaid expense 28,288 Increase in inventory 1,623,680 1,950,989 54,330 (55,985) Annual surplus $ 3,197,475 $ 4,004,081 $ 6,609,536 (Unaudited) (932,898) 66,477 (51,577)

7 NETHERCOTT & COMPANY 5 Items not invomng cash: The accompanying notes are an integral part of these financial statements. CASH, END OF YEAR $ 812,858 $ 1,563,050 ACTUAL ACTUAL payable and accrued liabilities 600,610 (1,518,752) Cash, beginning of year 1,563, ,005 (6,185,307) (137,990) 8,013,852 Increase in taxes receivable (391,493) (222,173) Decrease (increase) in accounts receivable (690,711) 457,244 Decrease in deferred revenue (75,011) (227,989) Decrease (increase) in prepaid expense 28,288 (51,577) Increase (decrease) in longterm receivables Increase (decrease) in accounts Proceeds of sale of tangible capital assets 8,320 36,214 Decrease in temporary borrowing CAPITAL ACTIVITIES FINANCING ACTIVITIES OMEIFA Change in noncash assets and liabilities Increase in inventory of land held for resale (55,985) (932,898) Cash provided by (used for) operations 5,573,105 3,233,667 Loss on sale of tangible capital assets 54,330 66,477 McNabb drain assessment 20,228 51,320 CONSOLIDATED STATEMENT OF CASH FLOWS OPERATING ACTIVITIES Annual surplus $ 4,004,081 $ 6,609,536 Amortization 1,950,989 1,623,680 Additions of tangible capital assets (6,193,627) (10,277,688) INCREASE (DECREASE) IN CASH FOR YEAR (750,192) 1,006,045 Brechin sewers assessment 127,779 (2,621,201) Increase (decrease) in amortizing debentures (137,990) 8,560,852 (547,000)

8 (i) These consolidated financial statements reflect the assets, liabilities, sources of financing and (i) Sources of financing and expenditures are reported on the accrual basis of accounting with the (iii) Nonfinancial assets NETHERCOTF & COMPANY 6 C expenditures of the revenue fund, capital funds, reserve funds and reserves and include the expenditures are recognized as they are incurred and measurable as a result of receipt of goods (ii) The accrual basis of accounting recognizes revenues as they become available and measurable; the municipality and the resulting interest income and expenditures. the School Boards and the County of Simcoe are not reflected in the municipal fund balances of All interfund assets and liabilities and sources of financing and expenditures have been (a) Basis of Consolidation the Public Sector Accounting Board of The Canadian Institute of Chartered Accountants. the control of Council. Consolidated Balance Sheet. operations in the periods in which they are paid. these financial statements. Outstanding payments to or from these agencies are included in the (ii) Accounting for County and School Board Transactions of management prepared in accordance with accounting policies prescribed for Ontario municipalities by 1. SIGNIFICANT ACCOUNTING POLICIES (b) Basis of Accounting NOTES TO FINANCIAL STATEMENTS The consolidated financial statements of the Corporation of the Township of Ramara are the representation eliminated with the exception of loans or advances between reserve funds and any other fund of The taxation, other revenues, expenditures, assets and liabilities with respect to the operations of exception of principal and interest charges on longterm liabilities which are charged against intended for sale in the ordinary course of operations. activities of all committees of Council and the Township of Ramara Library Board which is under Nonfinancial 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 or services and the creation of a legal obligation to pay.

9 NETHERCOTT & COMPANY 7 a) Tangible capital assets Land improvements 15 Buildings and structures 20 Asset Useful Life in years straightline basis over their estimated useful lives as follows: less residual value of the tangible capital assets, excluding land, are amortized on a attributable to acquisition, construction, development or betterment of the asset. The cost, Tangible capital assets are recorded at cost which include amounts that are directly (iii) Nonfinancial assets (continued) (b) Basis of Accounting SIGNIFICANT ACCOUNTING POLICIES (continued) NOTES TO FINANCIAL STATEMENTS during the period. Actual results could differ from these estimates. Furnishings and office equipment 5 Infrastructure disposal. Assets under construction are not amortized until the asset is available for the date of the financial statements and the reported amounts of revenues and expenditures Onehalf of the annual amortization is charged in the year of acquisition and in the year of The preparation of financial statements in conformity with Canadian generally accepted reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at financial principles requires management to make estimates and assumptions that affect the (iv) Use of estimates Water and wastewater 10 Parks and waterways 10 Roads 20 Vehicles and mobile equipment 7 Tangible capital assets received as donations are recorded at their fair value at the date interrupted or the project is deemed complete. the cost. The capitalization ceases when development/construction activities are takes a substantial period of time to get ready for its intended use is capitalized as part of Borrowing costs incurred by the acquisition, construction or production of an asset that b) Donations of tangible capital assets d) Interest capitalization as assets in the financial statements. c) Intangible assets of receipt and also are recorded as revenue. productive use. Machinery and fixed equipment 5 Intangible assets and natural resources that have not been purchased are not recognized

10 NETHERCOTT & COMPANY 8 C policy has changed amounts reported in the prior period as follows: replacement or reproduction cost to an estimated historical cost at the year of acquisition. (a) Methods used for determining the cost of each major category of tangible capital assets a consistent method of estimating the replacement or reproduction cost of the tangible capital assets for which it did not have historical cost records, except in circumstances where it could be demonstrated that assets. When historical cost records were not available, other methods were used to estimate the costs Section 1200 establishes general reporting principles and standards for the disclosure of information in The Township has implemented Sections 1200 and 3150 of the Public Sector Accounting Board ( PSAB ). government financial statements. Section 3150 requires governments to record and amortize their tangible The financial information recorded includes the actual or estimated historical cost of the tangible capital and accumulated amortization of the assets. The Township employed Suncorp Valuations Ltd. who applied 2. CHANGE IN ACCOUNTING POLICIES NOTES TO FINANCIAL STATEMENTS ( capital assets in their financial statements. Tangible capital assets were formerly expensed as acquired. a different method would provide a more accurate estimate of the cost of a particular type of tangible capital asset. After defining replacement or reproduction cost, the February 19, 2008 Watson & Associates Study sponsored by the MFOA and AMCTO as well as the Marshall Valuation Service and R. S. Means Year ended December 31, 2008 Valuation Service were used as resources for determining appropriate indices in order to deflate the This change has been applied retroactively and prior periods have been restated. This change in accounting Annual Surplus, as restated $ 6609,536 (3,425,330) Accumulated surplus, as restated $ 44,980,091 Assets capitalized but previously expensed 10,277,688 Proceeds on disposal previously reported as revenue (36,214) Annual surplus (deficit), as previously reported Net change in surplus (deficit), as previously reported $ (1,941,781) Amortization expense not previously recorded (1,623,680) Gain (loss) on disposal of assets (66,477) Net book value of tangible capital assets recorded 48,405,421 Reserve funds 698,888 Reserves 2,116,499 Capital Accumulated surplus (deficit), as previously reported Operating $ (6,240,717)

11 NETHERCOU & COMPANY 9 5. AMORTIZING DEBENTURES $ 3,228,585 $ 5,194,277 $ 8,422,862 There is a longterm receivable from benefiting landowners, with a maturity date of 2016 (McNabb Drain There is a longterm receivable from benefiting landowners, with a maturity date of 2038 (Brechin Sewers Assets are to be segregated between unrestricted and restricted so as to identify those funds which are purposes. percent per annum and matures August 3, The other debenture in the amount of $5,260,852 bears Reserve funds 830, ,889 Thereafter 2,840,149 4,796,499 7,636,648 Assessment) bearing interest at the rate of 8.00 percent per annum. Assessment) bearing interest at the rate of 2.80 percent per annum. $ 812,858 $ 1,563, SUMMARYOFCASH 4. LONGTERM RECEIVABLES available for current purposes from those which have been or are required to be set aside for specific Unrestricted $ (662,345) $ 144,810 Projects Corporation (OIPC). One debenture in the amount of $3,300,000 bears interest at the rate of 2.8 interest at the rate of 5.91 percent per annum and matures December 1, ,428 70, ,816 84, ,858 Original amount $ 3,300,000 $ 5,260,852 $ 8,560,852 Deferred revenue 644, ,351 The amortizing debentures consist of two fully registered debentures payable to the Ontario Infrastructure ,066 89, , ,627 79, ,913 NOTES TO FINANCIAL STATEMENTS Principal repayments for the next five years and thereafter are as follows: Principal payments in: ,499 74,

12 NOTES TO FINANCIAL STATEMENTS 6. DEFERRED REVENUE A requirement of PSAB is that obligatory reserve funds be reported as deferred revenue. The Township has obligatory development charges and parkland reserve funds. These reserve funds are considered obligatory as Provincial legislation restricts how these funds may be used and, under certain circumstances, how these funds may be refunded. In the case of development charges, revenue recognition occurs after the funds have been collected and when the Township has approved the expenditures for the capital works for which the development charges were raised. These funds have been set aside, as required by the Development Charges Act, to defray the cost of growth related capital projects associated with new development. The deferred revenue, reported on the consolidated statement of financial position, is made up of the following: Balance, beginning of year: Development Charges $ 585,666 $ 743,815 Federal Gas Tax Recreational Land (Planning Act) 133, , , ,340 Contribution from Development Charges Act 141, ,869 Payments received Federal Gas Tax Funding 279, ,964 Cash in lieu of Parkland received 2,100 10,500 Interest earned 6,541 30,510 Total revenue 429, ,843 Transfers to Revenue (504,746) (541,832) Balance, end of year $ 644,340 $ 719,351 Available development charges $ 573,523 $ 585,666 Available Federal Gas Tax Funds Available Planning Act contributions 70, ,685 Balance, end of year $ 644,340 $ 719,351 C NETHERCOTT & COMPANY 10

13 NETHERCOU & COMPANY 11 Payments during year 4,805,941 4,527, ,478 amount is included in the expenditures on the Consolidated Statement of Financial Activities. 8. OPERATION OF SCHOOL BOARDS AND THE COUNTY OF SIMCOE No works of art or historical treasures are held by the Township. value. Where an estimate of fair value could not be made, the tangible capital asset was recognized at a nominal See Schedule 1 Tangible Capital Assets for details of the Townships tangible capital assets Tangible capital assets disclosed at nominal values Works of art and historical treasures Amounts received or receivable 4,805,941 4,527, ,478 The municipality makes contributions to the Ontario Municipal Employees Retirement Fund (OMERS), which The amount contributed to OMERS for 2009 was $196,475 for current service ($193,060 in 2008). This specifies the amount of the retirement benefit to be received by the employees based on the length of the service and rates of pay. is a multiemployer plan, on behalf of 48 members of its staff. The plan is a defined benefit plan which 9. PENSION AGREEMENTS Due to at end of year $ $ BOARDS GENERAL MANAGEMENT COUNTY OF SIMCOE the fiscal year. Other revenue 57,990 $ 7. TANGIBLE CAPITAL ASSETS paid out by the Township. These amounts (outlined below) are not reflected in the financial operations of the Township other than to account for the amounts payable or receivable to or from these agencies at the end of NOTES TO FINANCIAL STATEMENTS Taxation, other revenues and expenditures of the School Boards and the County of Simcoe are collected and SCHOOL WASTE Taxation and user charges $ 4,805,941 $ 4,469,143 $ 938,478

14 NETHERCOTI & COMPANY 12 C Total surplus 46,418,341 42,164,704 Total reserves 1,734,968 2,116,499 Total surplus $ 48,984,172 $ 44,980,091 General ratepayers $ Designated ratepayers $ as follows: Accumulated surplus, end of year is comprised of individual fund surplus, reserves and reserve funds Surplus (deficit) 10. ACCUMULATED SURPLUS, END OF YEAR Municipal Projects 45,000 30,000 Recreation 15,231 (5,408) Waterworks (778,222) ( ) Contingencies 116, ,703 Rate Stabilization 612, ,178 Reserves set asside by Council Invested in tangible capital assets 52,585,409 48,405,421 Library Board 13,767 13,292 Sewage works (772,821) (866,656) Mosquito control 21,075 20,484 Community policing 9,318 7,056 NOTES TO FINANCIAL STATEMENTS Brechin sewers (4,700,225) (4,454,116) Health 24,809 16,751 Total reserve funds 830, ,888 Library Expansion 12,486 12,299 Reserve funds set asside for specific purpose Ramara Rails to Trails 2,827 2,806 Gamebridge Development 53,578 54,839 Equipment and Housing 354, ,924 Working Capital 64,317 22,026 Capital Expenditure Capital Expenditure Lagoon City Dredging 314, ,996 Lagoon City Condominium 92,687 92,024 Library Board 29,363 27,079 Township 867,385 1,048,513

15 NETHERCOTT & COMPANY CONTINGENT LIABILITIES of $195,201 ($231,492 in 2008). At the end of the year, there were longterm liabilities outstanding for the tile drainage loans in the amount $ 10,964,181 $ 9,728,962 Salaries, wages and employee benefits $ 4,505,180 $ 4,427,847 Contracted services police Amortization 1,950,989 1,623, EXPENDITURES BY OBJECT Total current fund operating expenditures for the year included activities as follows: NOTES TO FINANCIAL STATEMENTS Materials, services, rents and financial 3,926,409 3,137, , ,470

16 756, , ,143 SCHEDULE I SCHEDULE OF TANGIBLE CAPITAL ASSETS Asset Accumulated Amortization Net Book Net Book Balance Balance Balance Balance Value, Value, Beginning End of Beginning End of End of End of of Year Additions Disposals Year of Year Disposals Amortization Year Year Year Land $ 13,234,649 $ $ $ 13,234,649 $ $ $ Land improvements 697,528 59,382 Buildings and structures 6,001, Furnishings and office equipment 1,067,282 76,311 $ $ 13,234,649 $ 13234, , , , ,848 6,059,278 2,009,056 1,143, , ,925 2,136,981 3,922, , , , ,586 Machinery and fixed equipment 10,252, ,831 15,782 10,346,984 3,942,733 15, ,080 4,287,031 6,059,953 6,310,202 Vehicles and mobile equipment 4,635, , ,340 4,948,864 2,342, , ,309,062 2,639,802 2,293,213 Infrastructure Roads 20,276,617 4,428, ,997 11,315, ,412 12,026,428 12,678,569 8,961,601 Water and wastewater 17,814, ,088 22,786 17,910,028 5,274,613 10, ,635,893 12,274,135 12,540,113 Parks and waterways 512,431 Work in progress 43, , , ,153 17, , , , ,930 43,658 $ 74,536,945 $ 6,193,627 $ 343,908 $ 80,386,664 $ 26,131,524 $ 281,258 $ 1,950,989 $ 27,801,255 $ 52,585,409 $ 48,405,421 NEThcRCOTT & COMPANY