For the year ended December 31, Consolidated Financial Statements. Corporation of the Municipality of Brighton

Transcription

1 For the year ended December 31, 2015 Consolidated Financial Statements

2 ConsoLidated Statement of Cash Flows 7 Consolidated Statement of Financial Position 4 Consolidated Statement of Operations 5 Consolidated Statement of Change in Net Financial Assets (Debt) 6 Independent Auditors Report 3 Contents For the year ended December 31, 2015 Mount Hope Cemetery Board Trust Funds Notes to Financial Statements 60 Statement of Financial Position 58 Statement of Continuity 59 Independent Auditor s Report 57 Notes to Financial Statements 54 Mount Hope Cemetery Board Summary of Significant Accounting Policies 52 Statement of Financial Position 48 Statement of Operations 49 Statement of Change in Net Financial Assets SO Statement of Cash Flows 51 Independent Auditor s Report 46 Notes to Financial Statements 45 Summary of Significant Accounting Policies 44 Statement of Financial Position 41 Statement of Operations 42 Statement of Cash Flows 43 Independent Auditor s Report 39 Business Improvement Area Board Notes to Financial Statements 38 Statement of Financial Position 36 Statement of Continuity 37 Trust Funds Independent Auditor s Report 35 Summary of Significant Accounting Policies 30 Notes to Financial Statements 32 Statement of Financial Position 26 Statement of Operations 27 Statement of Change in Net Financial Assets 28 Statement of Cash Flows 29 Independent Auditor s Report 24 Public Library Board Notes to Consolidated Financial Statements 11 Summary of Significant Accounting Pot ides 8 Financial Statements

3 To the Members of Council of the Independent Auditor s Report t:ork ci rdcrerddllt member firms. A ugjsi5, L?fP,1Ld a,- l,mited lability nartnership, isa member of BOO Internationa Limted. a UK company tim:ted oy uararteo. and fam.s part of the international 600 Lindsay, Ontario Chartered Professional Accountants, Licensed Public Accountants DO asah accounting standards. operations and its cash flows for the year then ended in accordance with Canadian public sector financial position of the as at December 31, 2015, and of its In our opinion, the consolidated financial statements present fairly, in all material respects, the Opinion our audit opinion. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for the consolidated financial statements. The procedures selected depend on the auditor s judgment, internal control relevant to the entity s preparation and fair presentation of the consolidated financial the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also consolidated financial statements. accounting estimates made by management, as well as evaluating the overall presentation of the includes evaluating the appropriateness of accounting policies used and the reasonableness of statements, whether due to fraud or error. In making those risk assessments, the auditor considers statements in order to design audit procedures that are appropriate in the circumstances, but not for including the assessment of the risks of material misstatement of the consolidated financial An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in Those standards require that we comply with ethical requirements and plan and perform the audit to audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibility is to express an opinion on these consolidated financial statements based on our Auditor s Responsibility material misstatement. obtain reasonable assurance about whether the consolidated financial statements are free from statements in accordance with Canadian public sector accounting standards, and for such internal statements that are free from material misstatement, whether due to fraud or error. Management is responsible for the preparation and fair presentation of these consolidated financial control as management determines is necessary to enable the preparation of consolidated financial Management s Responsibility for the Consolidated Financial Statements explanatory information. cash flows for the year then ended, and a summary of significant accounting policies and other December 31, 2015, and the consolidated statements of operations, change in net financial assets and Municipality of Brighton, which comprise the consolidated statement of financial position as at We have audited the accompanying consolidated financial statements of the Corporation of the I_BJ: Lindsay ON K9V 453 Canada Toll-Free: P0 Box 358 Fax: Kent Street W Tel: BDO Canada LLP

4 Cash (Note 4) $ 5,455,649 $ 6,137,227 Financial assets December The accompan1ng summary of significant accounting policies and notes are an Integral pan or this (inanclal statement. 4 Mayor/CounciLtor MayoriCoundLlor On behalf Accumulated surplus (Note 9) $62,159,678 $ 63,078,153 62,347,450 61,965,291 Prepaid expenses 3,782 3,176 Non-financial assets Inventories of supplies 81, ,556 Tangible capital assets (Note 13) 62,262,581 61,859,559 Contingent Liabilities and commitments (Note 10) Net financial debt (Page 6) (187,772) 1,112,862 8,120,349 7,637,083 Municipal debt (Note 8) 2,851,076 2,996,392 Accounts payable and accrued expenses 2,574,831 2,269,355 Liabilities Deferred revenue - obligatory reserve funds (Note 6) 2,591,646 2,226,486 Dererred revenue - other (Note 6) 102, ,850 7,932,577 8,749,945 Inventory for resale 25,759 30,760 Accounts receivable (NoteS) 1,050,005 1,344,724 Taxes receivable 1,401,164 1,237,234 Consolidated Statement of Financial Position

5 Revenues (Note 12) For the year ended December Budget Actual Actual 5 The accompanyln summary of significant accounting policies and notes are an integral part of this financial statement. Accumulated surplus, end of year $ 65,652,029 $ 62,1 59,678 $ 63,078,153 Accumulated surplus, beginning of year 63,078,153 63,078,153 63,552,619 Annual surplus (deficit) 2,573,876 (918,475) (474,466) 11,065,397 13,450,089 13,157,992 RecreationaL and cultural services 1,442,031 1,478,568 1,698,366 Planning and development 1,040, , ,698 Health services 160, , ,547 General government 1, 330,776 1,71 5,640 1,386,904 Environmental services 1,673,233 2,478,541 2,139,382 Expenses Protection to persons and property 2,881,038 2,877,324 3,130,444 Transportation services 2,537,533 3,915,745 4,042,651 13,639,273 12,531,614 12,683,526 Loss on disposition of assets - (45,731) (18,231) Other Government of Canada 784, , ,852 Other MunicipaLities Grants Investment income 52,200 65,829 69,921 Penalties and interest on taxes 200, , ,852 User charges, licences and fines 2,907,826 3,072,746 3,097,771 Province of Ontario 1,039,044 1,172,805 1,245,384 Donations 3,300 52,981 7,555 Developer contributions earned 1,088,434 55, ,024 Taxation levied for own purposes (Note 2) $ 7,563,849 $ 7,579,888 $ 7,229,353 Consolidated Statement of Operations

6 For the year ended December Annual deficit $ 2,573,876 $ (918,475) $ (474,466) (Note 12) Budget Actual Actual 6 The accompanying summary of significant accounting policies and notes are an integral part of this financial statement. Net change In net financial assets (7,188,569) (1,300,634) (559,499) Net financial debt, end of year $ (6,075,707) $ (187,772) $ 1,112,862 Net financial assets, beginning of year 1,112,862 1,112,862 1,672,361-20,863 (94,207) Use/consumption of inventory of supplies - 102,556 8,630 Use/consumption of prepaid expenses - 3,176 2,895 Acquisition inventory of supplies - (81,087) (102,556) Acquisition of prepaid expenses - (3,782) (3,176) (7,168,569) (1,321,497) (465,292) Proceeds on disposal of tangible capital assets ,522 Loss on disposition of assets ,231 Amortization of tangible capital assets - 2,656,215 2,725,120 Write-downs of tangible capital assets - 45,732 - Acquisition of tangible capital assets (9,762,445) (3,104,969) (2,782,699) Consolidated Statement of Change in Net Financial Assets (Debt)

7 Cash flows from operating activities For the year ended December Actual Actual 7 The accompanying summary of significant accounting policies and notes are an integral part of this financial statement. Cash, beginning of year Cash,_end of3çr $ 5,455,649 $ j37,227 6,137,227 7,499,724 Net change in cash (681,578) (1,362,497) Debt principal repayments (145,316) (139,168) Cash flows from financing activities (3,104,969) (2,734,177) Proceeds on disposal of tangible capital assets - 48,522 Cash flows from capital transactions Acquisition of tangible capital assets (3,104,969) (2,782,699) 2,568,707 1,510,848 Sources increase in prepaid expenses increase in accounts payable and accrued expenses Increase in taxes receivable Increase in accounts receivabte Decrease in accounts payable and accrued expenses Decrease in deferred revenue - other Increase in inventories of supplies Decrease in accounts receivable Decrease in inventory for resale Increase in deferred revenue- obligatory reserve funds - Increase in deferred revenue Decrease in inventory of supplies other (606) 5,001 (163,930) (42,054) 294, , ,160 21,469 (281) (240,756) (209,303) (93,926) (287,721) 1,229 3,002 69,719 Uses 1,783,472 2,268,885 Loss on disposition of assets Annual deficit (Page 5) items not involving cash Amortization 2,656,215 45,732 18,231 2,725,120 $ (918,475) $ (474,466) Consolidated Statement of Cash Flows

8 (PSAB) of the Chartered ProfessionaL Accountants of Canada. policies and standards established by the PubLic Sector Accounting Board Responsibility municipality s management prepared in accordance with accounting December 31, 2015 Management These consolidated financial statements are the responsibility of the 8 The taxation, other revenues, expenses, assets and LiabiLities with respect separately in Note 2. balances of these consolidated financial statements, but are disclosed to the operations of the county and school boards are not reflected in the are not consolidated, but are disclosed separately in Note 1. Trust funds and their related operations administered by the municipality have been eliminated. AU interfund and inter-entity assets, Liabilities, revenues and expenses Brighton PubLic Library Board Brighton Downtown Business Improvement Area Board Mount Hope Cemetery Board boards which are under the control of Council; revenues and expenses of all committees of Council and the following local Basis of ConsoLidation These consolidated financial statements reflect the assets, liabilities, assets and non-financial assets. The accumulated surplus is made up of the combination of net financial objectives. with their service potential rather than their ability to generate future cash inflows. They form part of the financial position as they provide resources that the municipality can employ in the future to meet its Non-financiaL assets are normally used to deliver services. Their value Lies financial assets and Liabilities. This provides information about the municipality s overall future revenue requirements and its ability to assets form a part of the financial position and is the difference between discharge existing liabilities or finance future operations. Net financial finance activities and meet its obligations. Financial assets are those assets which could provide resources to LiabiLities of the municipality as well as non-financial assets. statement of financial position includes all the financial assets and position of the municipality and the changes thereto. The consolidated The focus of these consolidated financial statements is on the financial creation of a Legal obligation to pay. accounting. The accrual basis of accounting recognizes revenues as they become available and measurable; expenses are recognized as they are incurred and measurable as a result of receipt of goods or services and the Basis of Accounting Sources of financing and expenses are reported on the accrual basis of Summary of Significant Accounting Policies

9 Included in the consolidated financial statements are estimates related to December 31, 2015 necessarily involves the use of estimates, assumptions and approximations. Measurement Uncertainty upon future events, the preparation of periodic financial statements Use of Estimates and Since precise determination of many assets and liabilities is dependent 9 benefits. The municipality has adopted defined contribution plan benefit pension plan. The Board of Trustees, representing plan members future employer contributions to the Plan for past employee service. Pension Agreement The municipality is an employer member of the Ontario Municipal accounting principles for this Plan because insufficient information is available to apply defined benefit plan accounting principles. The amortization of the past service costs and interest costs related to the pension plan, including investment of the assets and administration of the municipality records as pension expense the current service cost, Employees Retirement System (OMERS), which is a multiemployer, defined and employers, is responsible for overseeing the management of the e) Except as noted in the govemment transfers policy below, conditional b) Fines and donations are recognized when collected. a) Tax revenue is recognized in the calendar year to which the tax c) Subdivider contributions and fees for services are recognized over the recognized as follows: recognized net of an allowance for anticipated uncollectible amounts. period of service or when required expenditures occur if applicable. have been fulfilled. Unconditional grant revenue is recognized when monies are receivable. Grants for the acquisition of tangible capital Revenue Recognition Revenue is reported on the accrual basis of accounting. Revenues are assessment applies. When necessary, taxes are recorded at estimated amounts when actual balances are not known. Taxes receivable are made, grant revenue is recognized to the extent the conditions imposed on it assets are recognized in the period in which eligible expenses are policies. Also, the amount recorded as allowance for doubtful accounts contributed assets and in the amortization policies as set out in these tangible capital assets both in determining fair market value of receivable is based on managements best estimate of future payments on receivable accounts. Summary of Significant Accounting Policies

10 December 31, 2015 amortization. Cost includes all costs directly related to acquisition or Tangible Capital Assets Tangible capital assets are recorded at cost less accumulated construction of the tangible capital asset including transportation costs, 10 met, except to the extent that transfer stipulations give rise to an Transfer revenue is recognized in the statement of operations as the stipulation liabilities are settled. as deferred revenue when transfer stipulations give rise to a LiabiLity. obligation that meets the definition of a LiabiLity. Transfers are recognized statements when the transfer is authorized and any eligibility criteria are Government Transfers Government transfers are recognized as revenue in the financial value to nil when all of the units have been sold. sales on a unit-by-unit basis in a manner expected to reduce the carrying Lower of cost or net realizable value and this cost is allocated to cost of Inventory Inventory of lots and niches of Mount Hope Cemetery are reflected at the revenue. OnLy the amount earned by qualifying expenditures in the Operations. externally restricted financing amounts must be reported as deferred Deferred Revenue Under PSAB accounting principles, obligatory reserve funds and any other current year is reflected as revenue in the Consolidated Statement of Water and sewer systems years Roads and Bridges years VehicLes 10 years Machinery and equipment 5-30 years Buildings years Land improvements years available for production or use as follows: estimated Life of the tangible capital asset commencing once the asset is revenue. Amortization is recorded on a straight-line basis over the value at the time of donation, with a corresponding amount recorded as installation costs, design and engineering fees, legal fees and site preparation costs. Contributed tangible capital assets are recorded at fair Summary of Significant Accounting Policies

11 Mount Hope Cemetery $ 219,608 $ 214,428 December 31, Trust Funds 11 ObLigatory funds in deferred revenue (Note 6) $ 2,591,646 $ 2,226,486 Consists of: 5 2,591,646 $ 2,226,486 Due from (to) own municipality 591, ,396 Cash (Note 4) S 1,999,712 $ 1,651, Restricted Assets $ 9,352,097 $ 9,111,351 County of NorthumberLand 6,158,798 5,907,991 SchooL Boards $ 3,193,299 $ 3,203, The foltowing amounts raised on behalf of others are not included in these financial statements. 2. Taxati on Raised on Behalf of Others Notes to Consolidated Financial Statements

12 Notes to Consolidated Financial Statements December 31, Cash Unrestricted Unrestricted cash $ 3,062,662 $ 2,352,742 Designated Designated cash 353,784 2,094,383 Designated GIC 39,491 39,032 Restricted Restricted cash 1,999,712 1,651,090 $ 5,455,649 $ 6,137,227 Most of the cash is on deposit at one financial institution (RBC). funds of $3,633,478. Designated cash relates to reserve 5. Accounts Receivable Unrestricted Canada Ontario Other municipalities and school boards Water and sewer customer accounts Due from Brighton District CurLing Club Other AlLowance for doubtful accounts ,840 $ 395,391 4,827 9,179 51,312 48, , ,733 7,339 14, , ,320 (49,403) (49,403) $ 1,050,005 $ 1,344,724 12

13 6. Deferred Revenue (322,729) Obligatory Reserve Funds December 31, 2015 the funding agreement signed between the Municipality and the Association of Municipalities of agreements. Ontario. Gas tax funds may be used towards designated projects as specified in the funding obligatory funds obligatory funds Restricted recognized Interest earned Other deferred revenue 102, ,850 2,591,646 2,226,486 Parktand (Planning Act) DeveLopment Charges Act Gas tax Building Department 66,029 59, , ,030 94,317 76,366 $ 1,933,682 $ 1,591,636 S 2,694,442 $ 2,371,336 The net change during the year in the restricted deferred revenue balances is made up as follows: Opening funds received Revenue Closing Charges Department Development Building Gas tax revenue is provided by the Government of Canada. The use of the funds is established by (55,985) - S 1,591,636 $ 59,454 $ 499,030 $ 76,366 $ 2,226, ,851 6, ,425 17, ,227 16, ,892 21,647 - (378,714) 5 1,933,682 $ 66,029 $ 497,618 $ 94,317 $ 2,591, Parkland Gas Tax Total Notes to Consolidated Financial Statements

14 $32,037) The municipality provides certain employee amounts which will require funding in future periods. a. Vacation Payable 7. Employee Future Amounts Payable December 31, surplus or deficit. Contributions made by the municipality to OMERS for 2015 were $240,878 ( $270,832). actuarial deficit of $6,977 million. Because OMERS is a multi-employer plan, any pension plan employees. As a result, the municipality does not recognize any share of the OMERS pension surpluses or deficits are a joint responsibility of Ontario municipal organizations and their status of OMERS Primary Pension Plan (the Plan) by comparing the actuarial value of invested date. The most recent actuarial valuation of the Plan was conducted at December 31, benefits accrued for service with actuarial assets at that date of $75,392 million indicating an The results of this valuation disclosed total actuarial LiabiLities of $82,369 million in respect of approximately 1,000 employers. Each year an independent actuary determines the funding assets to the estimated present value of all pension benefits that members have earned to OMERS provides pension services to more than 461,000 active and retired members and b. Pensi on Agreement from operations and included in accounts payabe in these financial statements. Vacation pay owing at December 31, 2015 of $19,857 ( has been fully funded Notes to Consolidated Financial Statements

15 blended monthly instalments of $7,657, with interest at 3,89% S 1,026,293 $ 1,077,210 Long term bank Loan maturing August 26, 2030 repayable in Municipal Debt December 31, Gross payments Interest PrincipaL payments 5 145,316 $ 139, ,724 $ 258, , , c. TotaL gross payments for the year to service net municipal debt are as follows: repayment limit prescribed by the Ministry of MunicipaL Affairs and Housing. required and the annual principal and interest payments required are within the annual debt b. The Long-term liabilities issued in the municipalits name have been approved by by-law as Total payment $ 258,725 $ 258,724 $ 258,725 $ 258,724 $2,699,549 $3,734,447 Interest 107, ,794 95,646 89, , ,371 PrincipaL S 151,014 $ 156,930 $ 163,079 $ 169,469 $2,210,584 $2,851,076 Years Total a. Future payments requiring taxation and user charge financing are summarized as follows: Net municipal debt 5 2,851,076 $ 2,996,392 blended monthly instalments of $652, with interest at 2.93% 48,939 55,233 Long term bank Wan maturing December 20, 2022 repayable in blended monthly instalments of $13,250, with interest at 3.89% 1,775,844 1,863,949 Long term bank Loan maturing August 26, 2030 repayable in Notes to Consolidated Financial Statements

16 December 31, Accumulated Surplus MunicipaL surplus (deficit) $ 171,700 $ (53,562) Public Library Board surplus 113,774 44,215 Business Improvement Area Board surplus 16,505 14,685 Unfunded capital (3,711,997) (2,050,766) Municipal debt to be recovered in future (NoteS) (2,851,076) (2,996,392) 10. Contingent Liabilities and Commitments a. Credit Facility Agreement The amount available at any time is Limited to $4 million via an operating Loan. Any balance borrowing Limit for 2015 in by-law , and there was was no balance outstanding in b. Spending Commitments In previous years, the municipality committed $250,000 to Quinte HeaLthcare Corporations Imagine Campaign. The remaining commitment at December 31, 2015 is $25,000. The Municipality has entered into a commitment with Brighton YMCA to contribute $30,000 per c. Other Contingencies In the normal course of its operations, the municipality is subject to various litigations and have a material adverse effect on its financial position. 11. Comparative Figures 16 Comparative figures have been restated to conform to current year presentation. the municipality s management believes that the ultimate disposition of these matters will not claims. The ultimate outcome of these claims cannot be determined at this time. However, year for five years commencing in either 2014 or borrowed will bear interest at prime Less.5% per year. CounciL authorized the temporary The municipality has a revolving credit facility agreement with its main financial institution. $62,159,678 S 63,078,153 Reserve/reserve fund balances 6,1 34,700 6,243,096 invested in tangible capital assets (Note 13) 62,262,581 61,859, ,470 22,656 Cemetery surplus 23,491 17,318 Notes to Consolidated Financial Statements

17 with that used to report actual results. The budget was prepared on a modified accrual basis while 12. Budget Amounts The 2015 Budget adopted by Council on February 19, 2015 was not prepared on a basis consistent December 31, $ Consists of: Municipality of Brighton Brighton Public Library Brighton Downtown BIA Mount Hope Cemetery $ Budgeted use of prior year surplus $ - $ Debt repayment reserve? reserve funds 4,297,398 2,891,171 Capital expenditures Transfers from (to) (9,762,445) Annual surplus (deficit) (7,188,569) 9,762,445 $ 2,573,876 20,827,842 (9,762,445) 11,065,397 Health services Planning and development Protection to persons and property Transportation services Expenditures General government Environmental services Recreation and cultural services 6,614,691 1,577,881 7,054,570 1,403, ,370 2,939,138 1,077,416 (4,517,037) (4,941,458) (73,000) (58,100) (135,850) (37,000) 1,442,031 1,330,776 2,881,038 2,537,533 1,673,233 1,040, ,370 13,639,273-13,639,273 User charges, licences and fines Taxation levied for own purposes Other Revenue Grants 2,907,826-2,907,826 1,823,664-1,343,934 - S 7,563,849 $ - $ 1,823,664 1,343,934 7,563,849 statements adopted by presented in 2015 budget 2015 budget and Change in Net Financial Assets represent the budget adopted by Council on February 19, 2015 Council expenditures Non TCA tangible capital assets. As a result, the budget figures presented in the Statements of Operations treated all tangible capital expenditures as expenses and did not include amortization expense on Canadian public sector accounting standards now require a full accrual basis. The budget figures with adjustments as follows: from capital Notes to Consolidated Financial Statements

18 - 103,523 (135,385) Notes to Consolidated Financial Statements 18 December 31, Tangible Capital Assets Cost, beginning of year Additions Disposals Cost, end of year Accumulated Amortization, beginning of year Amortization Disposals Accumulated Amortization, end of year Net book value, beginning of year Net book value, end of year I General Assets I Infrastructure Assets I Land Machinery and Roads and Water and Assets Under Land Improvements Buildings EQuipment Vehicles Bridges Sewer Construction ,377,721 $ 3,152,748 $ 11,843, ,992,865 $ 3,546,227 $ 59,219,087 $ 15,437,816 $ 2,480,216 $ 102,050, , ,442 52, ,154 2,142,472 3,104,969 - (47,033). (181,117) - - (228,150) 5 3,377,721 $ 3,152,748 $ 11,858,005 $ 3,098, ,598,909 $ 59,781, ,437,816 $ 4,622,688 $104,927, $ 1,264,695 $ 3,649,906 $ 2,012,410 $ 2,262,131 $ 22,386,764 $ 8,615,001 $ $ 286, , ,619 1,495, , (47,033) - - $ 40,190,907 2,656,215 - (182,418) 1,368,218 $ 3,936,060 $ 2,194,904 $ 2,511,750 $ 23,746,827 $ 8,906,945 $ - $ 42,664, ,377,721 $ 1,888,053 $ 8,193,880 $ 980,455 $ 1,284,096 $ 36,832,323 $ 6,822,815 $ 2,480,216 $ 61,859,559 S 3,377,721 $ 1,784,530 $ 7,921,945 $ 903,370 S 1,087,159 $ 36,034,297 $ 6,530,871 $ 4,622,688 $ 62,262,531

19 $ 5-127,263 Notes to Consolidated Financial Statements 19 December 31, Tangible Capital Assets (Cont d) Cost, beginning of year Additions Disposals lnterna transfers Cost, end of year Accumulated Amortization, beginning of year Amortization Disposals Accumulated Amortization, end of year Net book value, beginning of year Net book value, end of year I General Assets I Infrastructure Assets Land Machinery and Land Improvements Buildings Eouipment Vehicles Roads and Bridges Water and Assets Under Sewer Construction ,377,721 $ 3,099,976 $ 11,698,619 $ 2,946,617 $ 3,408,664 $ 57,856,724 $ 15,393,092 $ 2,498,049 $ 100,279,512-52, , , ,257 1,328,659 14, ,113 2,782, (226,345) (372,957) (369,629) (42,814) - 403,283 73,400 (603,946) (1,011,745) $ 3,377,721 $ 3,152,748 $ 11,843,786 $ 2,992,865 $ 3,546,227 $ 59,219,087 $ 15,437,816 $ 2,480,216 $ 102,050, ,740 1,156,955 $ 3,358,246 $ 1,980,262 $ 2,370,939 $ 21,210,645 $ 8,333,732 $ , , ,649 1,487, , (226,349) (370,457) (311,695) (36,491) - 1,264,695 $ 3,649,906 $ 2,012,410 $ 2,262,131 $ 22,386,764 $ 8,615,001 $ - $ 38,410,779 2,725,120 (944,992) $ 40,190, ,377,721 $ 1,943,021 $ 8,340,373 $ 966,355 $ 1,037,725 $ 36,646,129 $ 7,059,360 $ 2,498,049 $ , ,377,111 $ 1,888,053 $ 8,193,880 $ 980,455 $ 1,284,096 $ 36,832,323 $ 6,822,815 $ 2,480,216 $ 61,859,559

20 December 31, 2015 construction is $4,622,689 ( $2,480,216). 13. Tangible Capital Assets (Cont d) The net book value of tangible capital assets not being amortized because they are under 20 of the cemetery board. The health services function consists of external transfers to the medical centre and the activities Health Services urban residents. The environmental function is responsible for providing storm sewer, water and sewer services to Environmental Services The transportation function includes construction and maintenance of the Municipality s roads and bridges, winter control, parking and street lighting. Transportation Services measures. Protection includes police, fire, conservation authority, protective inspection and emergency Protection to Persons and Property General Government management of the MunicipaLity and its programs and services. General government consists of the activities of Council and general financial and administrative The nature of the segments and the activities they encompass are as follows: on each segments net budget allocation methodologies are attributable to the segment Taxation, payments-in-lieu of taxes and unconditional government transfers are apportioned based requirements. employed in the preparation of segmented financial inforniation. and amounts that are allocated on a reasonable basis. Certain For each reported segment, revenues and expenses represent both amounts that are directly activities are separately disclosed in the segmented information. a wide range of services to its citizens, MunicipaL services are reported by function and their The is a municipal government institution that provides 14. Segmented Information benefits associated with such property cannot be made. tangible capital assets in the financial statements because a reasonable estimate of the future history of the Corporation of the MunicipaLity of Brighton. These items are not recognized as The MunicipaLity holds various works of art and historical treasures pertaining to the heritage and Notes to Consolidated Financial Statements Corporation of the MunicipaLity of Brighton

21 and programs and Library services. 14. Segmented Information Continued The recreation and cultural services function provides indoor and outdoor recreational facilities Recreational and Cultural Services December 31, significant accounting policies. The accounting policies of the segments are the same as those described in the summary of development within the Municipality. The planning and development services function manages commercial, industrial and residential Planning and Development Notes to Consolidated Financial Statements

22 (268,183) - 70,903 Notes to Consolidated Financial Statements - 24,467 December 31, Segmented Information Continued Protection to , , , ,981. Far the year ended persons and Transportation EnvironmentaL RecreationaL and Planning and 2015 December 31 GeneraL government property services Services HeaLth services cultural services DeveLopment Total Revenue Taxation S 753,166 $ 1,576,932 $ 3,784,980 $ - $ 62,152 $ 1,056,613 $ 346,045 $ 7,579,888 User charges 312, ,984 36,747 2,083,217 37, ,292 79,303 3,072,746 Government transfers 90,014 Government 271, ,357 50,989 7, ,604 41,357 1,181,805 transfers - capital Federal gas tax ,467 funding DeveLoper 322,728 contributions Investment 55,985-55,985 income 65,829 PenaLties and interest on taxes 220,916 Donations 5,064 Gain (Loss) on ,417 disposition of assets (45,731) (45,731) Expenses SaLaries and benefits MateriaLs, supplies and services Contracted services Rent and financial expenses Interest charges Amortization expense InternaL transfers Transfers to other entities Annual surplusfldeficlt) S 1,447,457 2,083,972 4,551,081 2,134, ,815 1,740, ,705 12,531, , ,731 1,101, ,443 32, , ,196 4,610, , , , ,594 24, , ,770 3,483,935 26,397 1,798, , ,745-10,803 18,982 23,734 51, ,324 6,142 42,505-2,177, , , , ,042 1,719, ,559 5, ,812-2,656,215 (40,000) 13,000 (68,000) 50,000-30,000 15, ,800 2, , ,408 1,715,640 2,877,324 3,915,745 2,478, ,343 1,478, ,928 13,450,089 $ (793,352) S 635,336 $ (344,335) $ (21,528) $ 261,810 $ (388,223) $ (918,475)

23 - 123,961-1,725 Notes to Consolidated Financial Statements 23 December 31, Segmented Information Continued For the year ended December31 Revenue Taxation User charges Government transfers Government transfers - capital Federal gas tax funding Develo per contributions Investment income Peflalties and interest On taxes Donations Gain (loss) on disposition of assets Expenses Salaries and benefits Materials, supplies and services Contracted services Rent and financial expenses Interest charges,bsnortization expense Internal transfers Transfers to other entities Annual surplus/(deficit) $ Protection to persons and Transportation Environmental Recreation and Planning and 2014 General government property services services Health services Cultural services development Total $ 754, ,915 $ 1,640, , , ,286 29,810-69, , $ 2,715,337 39, , , ,214 S 1,958,671 24,465 S 53,164 42,548 $ 1,361,035 S 384,279 7, ,984-92,600-53,000 1,394 6, , ,291 $ 7,229,353 3,097,771 97,599 1,156,830-92, , ,024-69, ,852-7,555-1,401 (27,362) (6,323) - 14,053 - (18,231) 1,416,413 2,186,375 3,866,318 1,976, ,463 2,184, ,187 12,683, , ,046 1,103, ,240 38, , ,655 4,578, , ,918 1,045, ,969 31, , ,575 3,134,035 19,826 1,910, ,454 77,983-15, ,927 30,151 10,152-74,676-9,964 6,011 43, ,209,350 79, , , ,469 1,736, ,362 3, ,716-2,725,120 (26,000) 13,000 (66,000) 38,000-26,000 15, ,386,904 3,130,444 4,042,651-2,139,382 57,450 74,350 55, , ,547 1,698, ,698 13,157,992 29,509 $ (944,069) S (176,333) 5 (162,569) 5 (26,084) S S (474,466)

24 For the year ended December 31, 2015 Cantents Summary of Significant Accounting Policies 30 Notes to Financial Statements 32 Independent Auditor s Report 24 Statement of Financial. Position 26 Statement of Operations 27 Statement of Change in Net Financial Assets 28 Statement of Cash Flows 29 Financial Statements Financial Statements Municipality of Brighton Corporation of the Public Library Board

25 Members of Council, Inhabitants and Ratepayers of the Municipality of Brighton To the members of the Public Library Board, Independent Auditor s Report too Canada a Ca acian hlmitec labllity partnership, of BOO international limited, a UK company h mted by hr isa nwmer jarar.tee, and forms part of the 1u24t!cnn! BDO network of inoep-endert member farms. donations, fines, fees and fundraising revenue, the completeness of which is not susceptible to amounts recorded in the records of the organization. Therefore, we were not able to determine years ended December 31, 2015 and 2014, financial assets as at December 31, 2015 and 2014 and because of the possible effects of this limitation in scope. opinion on the financial statements for the year ended December 31, 2014 was modified accordingly satisfactory audit verification, Accordingly, verification of these revenues was limited to the accumulated surplus as at January 1 and December 31 for both the 2015 and 2014 years. Our audit miscellaneous and non-resident user fees, annual surplus, and cash flows from operations for the whether any adjustments might be necessary to donations, fines and fees, book and bag sales, In common with many non-profit organizations, the entity derives revenue from cash receipts for Basis for Qualified Opinion for our qualified audit opinion. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis by management, as well as evaluating the overall presentation of the financial statements. the entity s preparation and fair presentation of the financial statements in order to design audit appropriateness of accounting policies used and the reasonableness of accounting estimates made opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the the assessment of the risks of material misstatement of the financial statements, whether due to procedures that are appropriate in the circumstances, but not for the purpose of expressing an fraud or error. In making those risk assessments, the auditor considers internal control relevant to in the financial statements. The procedures selected depend on the auditor s judgment, including An audit involves performing procedures to obtain audit evidence about the amounts and disclosures misstatement. 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 Our responsibility is to express an opinion on these financial statements based on our audit. We Auditor s Responsibility obtain reasonable assurance about whether the financial statements are free from material from material misstatement, whether due to fraud or error. Management is responsible for the preparation and fair presentation of these financial statements in Management s Responsibility for the Financial Statements accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free then ended1 and a summary of significant accounting policies and notes to financial statements. 31, 2015 and the statements of operations, change in net financial assets and cash flows for the year Brighton Public Library Board, which comprise the statement of financial position as at December We have audited the accompanying financial statements of the Corporation of the Municipality of I Bi: Lindsay ON K9V 453 Canada Fax: Kent Street W Tel: BOO Canada LLP ToLl-Free: P0 Box 358

26 position of the Corporation of the MunicipaLity of Brighton PubLic Library Board as at December 31, Canadian public sector accounting standards. Opinion paragraph, the financial statements present fairly, in all material respects, the financial 2015, and the results of its operations and its cash flows for the year then ended in accordance with QuaLified Opinion - May 24, 2016 Lindsay, Ontario Chartered ProfessionaL Accountants, Licensed PubLic Accountants DO Ch 14? BDO 25 In our opinion, except for the possib e effects of the matter described in the Basis for QuaLified

27 Accounts receivable 8,767 6,694 Temporary investments (Note 2) 39,491 39,032 Cash (Note 1) $ 120,249 $ 41,421 Financial assets December Statement of Financial Position 26 The accompanying summary of significant accounting policies and notes are an integral part of these financial statements Chair Treasurer On behalf of the Board: Accumulated surplus (Note 6) $ 316,377 $ 231, , ,899 Tangible capital assets (NoteS) 163, ,723 Prepaid expenses 3,782 3,176 Non-financial assets Net financial assets 149,239 79,762 Accounts payable and accrued liabilities 19,268 7,385 Liabilities 168,507 87,147 Public Library Board

28 (Note 3) Government grants 35,139 44,515 37,048 For the year ended December31 Budget Municipal contributions $ 360,500 $ 360,500 $ 355,410 Revenues Statement of Operations Donations, fines and fees 9,970 54,479 9,950 Book and bag sales 3,000 2,318 3,019 MiscelLaneous 3,400 2,933 3,142 SaLaries and employee benefits 306, , ,397 Supplies 4,700 4,373 4,802 TraveL 2,500 2, Sundry 300 3,049 2,491 The accompanying summary of significant accounting policies and notes are an integral part of these financial statements. 27 Accumulated surplus, end of year $ 283,661 $ 316,377 $ 231,661 Accumulated surplus, beginning of the year 231, , ,947 Annual surplus 52,000 84,716 6, , , ,372 Amortization - 50,350 48,427 Equipment maintenance 1, Professional fees 7,300 5,375 2,973 Computer 32,500 36,487 32,800 Outreach programs 2,000 1,762 1,213 Communication 2,500 2,419 2,019 Professional development 1,500 1, Expenses 413, , ,086 Non-resident user fees Interest ,017 Public Library Board

29 Annual surplus $ 52,000 $ 84,716 $ 6,714 (Note 3) For theyear ended December 31 Budget Statement of Change in Net Financial Assets Amortization of tangible capital assets - 50,350 48,427 Acquisition of tangible capital assets (58,000) (64,983) (43,183) Acquisition of - prepaid expenses (3,782) Use of - prepaid expenses 3,176 2,895 The accompanying summary of significant accounting policies and notes are an integral part of these financial statements. 28 Net financial assets, end of year $ 73,762 $ 149,239 $ 79,762 Net financial assets, beginning of year 79,762 79,762 68,085 Net change in net financial assets (6,000) 69,477 11,677 (3,176) Public Library Board

30 Public Library Board Statement of Cash Flows December Cash flows from operating activities Annual surplus $ 84,716 $ 6,714 Items not involving cash Amortization 50,350 48, ,066 55,141 Uses Increase in accounts receivable (2,073) - Increase in prepaid expenses (607) (283) Decrease in deferred revenue - (3,346) (2,680) (3,629) Sources Decrease in accounts receivable Increase In accounts payable and accrued LiabiLities 11,884 2,926 11,884 3,624 Capital transactions Acquisition of tangible capital assets (64,983) (43,183) Net change in cash 79,287 11,953 Cash and temporary Investments, beginning of year 80,453 68,500 Cash and temporary Investments, end of year $ 159,740 $ 80,453 Consists of: Cash $ 120,249 $ 41,421 Temporary Investment 39,491 39,032 Total $ 1 59,740 $ 80,453 The accompanying summary of significant accounting policies and notes are an integral part of these financial statements. 29

31 Public Library Board Summary of Significant Accounting Policies December 31, 2015 Management Responsibility The financial statements of the Public Library Board are the representation of management prepared in accordance with accounting policies prescribed for Ontario municipalities by the Ministry of MunicipaL Affairs and Housing and standards established by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered ProfessionaL Accountants. Basis of 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. The focus of PSAB financial statements is on the financial position of the Board and the changes thereto. The Statement of Financial Position includes all the assets and liabilities of the Board. FinanciaL assets are those assets which could provide resources to discharge existing liabilities or finance future operations. Net financial assets form a part of the financial position and is the difference between financial assets and liabilities. This provides information about the Boards overall future revenue requirements and its ability to finance activities and meet its obligations. Non-financial assets are normally used to deliver services. Their value Lies with their service potential rather than their ability to generate future cash inflows. They form part of the financial position as they provide resources that the government can employ in the future to met its objectives. The accumulated surplus is made up of the combination of net financial assets and non-financial assets. Estimates and Measurement Since precise determination of many assets and liabilities is Uncertainty dependent upon future events, the preparation of periodic financial statements necessarily involves the use of estimates and approximations. These have been made using careful judgment. Actual results could differ from these estimates. Significant estimates included in these financial statements are the tangible capital asset policies noted below. Government Transfers Government transfers are recognized as revenue in the financial statements when the transfer is authorized and any eligibility criteria are met, except to the extent that transfer stipulations give rise to an obligation that meets the definition of a LiabiLity. Transfers are recognized as deferred revenue when transfer stipulations give rise to a Liability. Transfer revenue is recognized in the statement of operations as the stipulation liabilities are settled. 30

32 Public Library Board Summary of Significant Accounting Policies December 31, 2015 Revenue Recognition The Library receives revenue from a variety of sources and applies the following recognition policies: a) Grants and contributions received for operating expenses and tangible capital assets are recognized as revenue in the year in which the related expenses are incurred. b) Fee and fine revenue is recognized when the cash is collected. c) Revenue from donations and fundraising events is recognized when the cash is collected. Tangible Capital Assets TangibLe capital assets are recorded at cost Less accumulated amortization. Cost includes all costs directly related to acquisition or construction of the tangible capital asset including transportation costs, installation costs, design and engineering fees, Legal fees and site preparation costs. Contributed tangible capital assets are recorded at fair value at the time of donation, with a corresponding amount recorded as revenue. Amortization is recorded on a straight-line basis over the estimated life of the tangible capital asset commencing once the asset is available for production or use as follows: Books and periodicals Computer hardware and furniture 7 years 5-15 years Pension Agreement The municipality is an employer member of the Ontario Municipal Employees Retirement System (OMERS), which is a multiemployer, defined benefit pension plan. The Board of Trustees, representing plan members and employers, is responsible for overseeing the management of the pension plan, including investment of the assets and administration of the benefits. The municipality has adopted defined contribution plan accounting principles for this PLan because insufficient information is available to apply defined benefit plan accounting principles. The municipality records as pension expense the current service cost, amortization of past service costs and interest costs related to the future employer contributions to the PLan for past employee service. 31

33 Public Library Board Notes to Financial Statements December 31, Cash The Library bank account is held at a chartered bank and earns a nominal amount of interest. 2. Temporary nvestments The Library holds one Guaranteed Investment Certificate which bears interest at a rate of 0.65% and matures on May 24, Budget Figures The budget adopted by the Library Board on May 20, 2015 was not prepared on a basis consistent with that used to report actual results. The budget was prepared on a modified accrual basis while Public Sector Accounting Standards now require a full accrual basis. The budget expensed all tangible capital expenditures rather than including amortization expense. As a result, the budget figures presented in the statements of operations and change in net financial assets represent the budget adopted by the Library Board on May 20, 2015 with adjustments as follows: 2015 BaLanced budget for the year $ Add; CapitaL expenditures 58,000 Less: HST - PubLic Service Bodies rebate (6,000) Budget surplus per statement of operations $ 52, Pension Agreement OMERS provides pension services to more than 461,000 active and retired members and approximately 1,000 employers. Each year an independent actuary determines the funding status of OMERS Primary Pension Plan (the Plan) by comparing the actuarial value of invested assets to the estimated present value of all pension benefits that members have earned to date. The most recent actuarial valuation of the Plan was conducted at December 31, The results of this valuation disclosed total actuarial LiabiLities of $82,369 million in respect of benefits accrued for service with actuarial assets at that date of $75,392 million indicating an actuarial deficit of $6,977 million. Because OMERS is a multi-employer plan, any pension plan surpluses or deficits are a joint responsibility of Ontario municipal organizations and their employees. As a result, the municipality does not recognize any share of the OMERS pension surplus or deficit. Contributions made by the municipality to OMERS for 2015 were $14,762 ( $19,535). 32

34 December 31, 2015 Computer Periodicals & Furniture Tangible Capital Assets Books and Hardware Accumulated amortization beginning of year Amortization expense Net book value end of year Amortization expense Cost beginning of year Additions during the year Disposals during the year Cost end of the year AccumuLated amortization beginning of year AccumuLated amortization of disposals AccumuLated amortization end of year Net book value beginning of year Cost beginning of year Additions during the year Disposals during the year Cost end of the year AccumuLated amortization of disposals AccumuLated amortization end of year Net book value beginning of year Net book value end of year $ 330,261 $ 90,740 $ 421,001 S 339,792 $ 99,159 $ 438,951 $ 189,828 $ 82,450 $ 272, ,337 $ 84,258 $ 275, ,433 $ 8,290 $ 148, ,455 $ 14,901 $ 163,356 Books and Hardware PeriodicaLs & Furniture ,989 $ 90,740 $ 421,729 (43,911) - (43,911) 5 330,261 $ 90,740 $ 421, ,559 $ 81,203 $ 267,762 (43,911) - (43,911) 5 189,828 $ 82,450 $ 272, ,430 $ 9,537 $ 153, ,433 $ 8,290 $ 148, ,180 1,247 48,427 43,183-43,183 Computer (47,033) - (47,033) 48,542 1,808 50,350 56,564 8,419 64,983 (47,033) - (47,033) Notes to Financial Statements Public Library Board

35 Reserve funds 72,247 39, Accumulated Surplus Surplus attributable to net capital assets 163, ,723 Operating surp.us S 80,774 $ 43, December 31, ,377 $ 231,661 Public Library Board Notes to Financial Statements

36 Notes to FinanciaL Statements 38 Statement of FinanciaL Position 36 Statement of Continuity 37 Financial Statements Independent Auditor s Report 35 Contents For the year ended December 31, 2015 Financial Statements Trust Funds

37 I_Bi Tel: BDO Canada LLP Fax: Kent StreetW To[IFree: P0 Box Lindsay ON K9V 453 Canada Independent Auditor s Report To the Members Council, Inhabitants and Ratepayers of the We have audited the accompanying financial statements of the Trust Funds of the Corporation of the Municipality of Brighton, which Comprise the statement of financial position as at December 31, 2015 and the statement of Continuity for the year then ended and notes to financial statements. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, 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. Auditor s 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 about whether the financial statements are free from 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 entitys 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 entitys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as welt 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 financial statements present fairly, in all material respects, the financial position of the Trust Funds of the as at December 31, 2015, and their continuity for the year then ended in accordance with Canadian public sector accounting standards. &JO Cnda uf Chartered Professional Accountants, Licensed PubLic Accountants Lindsay, Ontario August 15, 2016 BOO Canada LLP. a Canadian Limited Liability partnership, isa member of BOO international Limited, a UK company Limited by guarantee, and forms part of the international BOO network of independent member firms. 35

38 S 219,608 $ 214,604 Due from Cemetery Board Cash $ 219,608 $ 214,378 Financial assets December Statement of Financial Position The accompanying notes are an integral part of these financial statements. 36 Chair On behalf of the Board 5 219,608 $ 214,604 Fund balance 219, ,604 Due to Cemetery Board $ 369 $ - Liabilities and Fund Balances Trust Funds

39 Scattering grounds Revenues Interest 2,309 2,633 Sate of plots and niches 4,010 5,810 For the year ended December Monument care 600 1,176 Fund Balance, beginning of year $ 214,604 $ 207,593 Statement of Continuity The accompanying summary of significant accounting poicles and notes are an integral part of these financial statements.37 Fund Balance, end of year $ 219,239 $ 214,604 Transfer to Cemetery Board 2,309 2,633 Expenditures 6,944 9,644 Trust Funds

40 revenues as they become available and measurable; expenses are recognized as they are incurred Revenue and expenditures are reported on the accrual basis of accounting which recognizes 1. Basis of Accounting December 31, 2015 Notes to Financial Statements 38 Monument Care Trust Fund to maintain the stone in perpetuity. Interest earned on these trust funds is used for ongoing maintenance. When a memorial stone is installed, the Cemetery receives an amount which is transferred to the plot sales are credited to the PerpetuaL Care Trust Fund to maintain these plots in perpetuity. 2. Mount Hope Cemetery The fund represents the PerpetuaL Care and Monument Care Trust Fund balances. Forty percent of interment occurs. Revenues for the Mount Hope Cemetery trust funds occur when a cemetery plot is sold or when an and measurable as a result of goods or services and the creation of a Legal obligation to pay. Trust Funds

41 Summary of Significant Accounting Policies 44 Notes to Financial Statements 45 Statement of Financial Position 41 Statement of Operations 42 Statement of Cash FLows 43 Financial Statements Independent Auditor s Report 39 Contents For the year ended December 31, 2015 Financial. Statements Improvement Area Brighton Downtown Business Municipality of Brighton Corporation of the

42 IBDO Tel: Fax: Tall-Free: BOO Canada LLP 165 Kent Street W P0 Box 358 Lindsay ON K9V 453 Canada Independent Auditor s Report To the Members of the Corporation of the MunicipaLity of Brighton Downtown Business Improvement Area Board, Members of Council, Inhabitants and Ratepayers of the MunicipaLity of Brighton We have audited the accompanying financial statements of the Corporation of the Municipality of Brighton Downtown Business Improvement Area, which comprise the statement of financial position as at December 31, 2015 and the statements of operations and cash flows for the year then ended, and a summary of significant accounting policies and notes to financial statements. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, 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. Auditor s 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 about whether the financial statements are free from 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 qualified audit opinion. Basis for Qualified Opinion In common with many non-profit organizations, the entity derives revenue from cash receipts for donations and fundraising, the completeness of which is not susceptible to satisfactory audit verification. Accordingly, our verification of these revenues was Limited to the amounts recorded in the records of the organization. Therefore, we were not able to determine whether any adjustments might be necessary to donations and fundraising revenues, annual surplus, and cash flows from operations for the years ended December 31, 2015 and 2014, financial assets as at December 31, 2015 and 2014 and accumulated surplus as at January 1 and December 31 for both the 2015 and 2014 years. Our audit opinion on the financial statements for the year ended December 31, 2014 was modified accordingly because of the possible effects of this Limitation in scope. BOO Canada LLP, a Canadian limited ilabiuty partnership, isa member of BOO Internatlonat Limited, a UK company limited by guarantee, and forms part of the InternatIonal BOO network of Independent member firms.

43 IBDO Qualified Opinion In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements present fairly, in all material respects, the financial position of the Corporation of the MunicipaLity of Brighton Downtown Business Improvement Area as at December 31, 2015, in accordance with Canadian public sector accounting standards. Chartered Professional Accountants, Licen5ed PubLic Accountants Lindsay, Ontario May 4,

44 December Statement of Financial Position Cash (Note 2) $ 15,280 $ 13,635 Accounts receivable 2,845 2,640 Accounts payable and accrued expenses 1,620 1,590 On behalf of the Board: The accompanying summary of significant accounting policies and notes are an integral part of these financial statements 41 President Accumulated surplus $ 16,505 $ 14,685 Uabilities 18,125 16,275 Assets Brighton Downtown Business Improvement Area

45 Corporation of Brighton Downtown Business Improvement Area Statement of Operations the Municipality of Brighton Budget Actual Actual For the year ended December (Note 1) Revenues Tax revenue $ 33,500 $ 33,500 $ 32,500 Donations and fundraising - 5, ,500 38,583 32,655 Expenses Administration 2,600 2,421 2,648 Advertising and business promotion 8,100 5,630 6,365 Area development 15,100 14,315 18,324 ProfessionaL fees 1,600 1,648 1,617 SpeciaL events 6,100 12,749 4,498 33,500 36,763 33,452 AnnuaL surplus (deficit) - 1,820 (797) Accumulated surplus, beginning of year 14,685 14,685 15,482 Accumulated surplus, end of year $ 14,685 $ 16,505 $ 14,685 The accompanying 5ummary of significant accounting policies and notes are an integral part of these financial statements. 47

46 Brighton Downtown Business Improvement Area Statement of Cash Flows For the year ended December Cash flows from operating activities AnnuaL surplus (deficit) $ 1,820 $ (797) Uses Increase in accounts receivable (205) (1 55) Sources Increase in accounts payab e and accrued Liabilities Net change in cash 1,645 (922) Cash, beginning of year 13,635 14,557 Cash, end of year $ 15,280 $ 13,635 The accompanying summary of significant accounting policies and notes are an integral part of these financial statements. 43

47 Canada. The Brighton Downtown Business Improvement Area is designated December 31, 2015 Nature of Business The Municipality of Brighton is a municipality in the Province of Ontario, Summary of Significant Accounting Policies 44 those assets which could provide resources to discharge existing liabilities requirements and its ability to finance activities and meet its obligations. Revenue Recognition The Business Improvement Area receives revenue from a variety of sources ratepayers by the Municipality. collected. b) Revenue from donations and events is recognized when the cash is a) Taxation revenue is recognized in the calendar year it is raised from The focus of these financial statements is on the financial position of the or finance future operations. Accumulated surplus represents the financial and applies the following revenue recognition policies: includes all the assets and liabilities of the Board. Financial assets are position and is the difference between financial assets and liabilities. This provides information about the Boards overall future revenue Board and the changes thereto. The statement of financial position creation of a legal obligation to pay. 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 Basis of Accounting Sources of financing and expenditures are reported on the accrual basis of Canadian Institute of Chartered Professional Accountants of Canada. standards established by the Public Sector Accounting Board (PSAB) of the Management The financial statements of the Board are the representation of Responsibility management prepared in accordance with accounting policies and It is designed to be a self-help mechanism that provides the tools and under a special municipal by-law and legislated by the Province of Ontario. resources necessary to promote and beautify the area. Brighton Downtown Business Improvement Area

48 The budget approved by the Board on February 24, 2015 was prepared on a basis consistent with 1. Budget Amounts December 31, 2015 Notes to Financial Statements 45 amount of interest. The Business Improvement Area bank account is held at a chartered bank and earns a nominal 2. Cash Public Sector Accounting Standards. that used to report actual results. The budget was prepared on a full accrual basis consistent with Brighton Downtown Business Improvement Area

49 Corporation of the Municipality of Brighton Mount Hope Cemetery Board Financial Statements For the year ended December 31, 2015 contents Independent Auditor s Report 46 Financial Statements Statement of Financial Position 48 Statement of Operations 49 Statement of Change in Net Financial Assets 50 Statement of cash Flows 51 Summary of Significant Accounting Policies 52 Notes to Financial Statements 54

50 Members of Council, Inhabitants and Ratepayers of the Municipality of Brighton To the Members of the Mount Hope Cemetery Board, Independent Auditor s Report December 31, 2015 and 2014, current assets as at December 31, 2015 and 2014 and accumulated surplus as at January 1 and December 31 for both the 2015 and 2014 years. Our audit opinion on the possible effects of this limitation in scope. financial statements for the year ended December 31, 2014 was modified accordingly because of the verification. Accordingly, our verification of these revenues was Limited to the amounts recorded in necessary to donation revenues, annual surplus and cash flows from operations for the years ended receipts for donations, the completeness of which is not susceptible to satisfactory audit the records of the entity. We were not able to determine whether any adjustments might be for our qualified audit opinion. the assessment of the risks of material misstatement of the financial statements, whether due to the entity s preparation and fair presentation of the financial statements in order to design audit appropriateness of accounting policies used and the reasonableness of accounting estimates made procedures that are appropriate in the circumstances, but not for the purpose of expressing an fraud or error. In making those risk assessments, the auditor considers internal control relevant to misstatement, 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 Auditor s Responsibility obtain reasonable assurance about whether the financial statements are free from material accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free Management is responsible for the preparation and fair presentation of these financial statements in Management s Responsibility for the Financial Statements statements. December 31, 2015 and the statements of operations, change in net financial assets and ca5h flows I_Bi: TeL: BDO Canada LIP Fax: Kent StreetW ToLL-Free: P0 Box Lindsay 011 K9V 453 Canada We have audited the accompanying financial statements of the Corporation of the Municipality of Brighton Mount Hope Cemetery Board, which comprise the statement of financial position as at for the year then ended, and a summary of significant accounting policies and notes to financial from material misstatement, whether due to fraud or error. Our responsibility is to express an opinion on these financial statements based on our audit. We An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment, including opinion on the effectiveness of the entitjs internal control. An audit also includes evaluating the 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 Basis for Qualified Opinion In common with many non-profit organizations, the entity derives part of their revenue from cash BOO Canada LLP, a Canadian limited liability partnership. na member of BOO international limited, a UK company limited by guarsntee, and (arms part of the international BOO network o independent member firms. 46

51 Qualified Opinion 47 Chartered ProfessionaL Accountants, Licensed Public Accountants sector accounting standards. position of the Mount Hope Cemetery Board as at December 31, 2015, and their continuity for the year then ended in accordance with Canadian public In our opinion, except for the possible effects of the matter described in the Basis for QuaLified Opinion paragraph, the financial statements present fairly, in all material respects, the financial Lindsay, Ontario August 15, 2016 IBDO

52 December Statement of Financial Position Cash (Note 2) $ 10,637 $ 2,442 Due from trust funds (Note 3) Accounts receivable Accounts payable 5,839 3,351 Due to Municipatity of Brighton 8,000 12,483 Due to trust funds (Note 3) Net financial assets 23,491 17,142 Non financial assets TangibLe capital assets (Note 4) 41,950 27, Accumulated surplus (Note 5) $ 65,441 $ 44,611 13,839 16,060 Liabilities 37,330 33,202 Inventory 25,759 30,760 Financial assets Mount Hope Cemetery

53 Mount Hope Cemetery Statement of Operations For the year ended December31 Budget (Note 1) Revenue Municipal contribution $ 25,500 $ 40,122 $ Sale of niches 13,600 15,470 9,175 Interments 20,000 14,105 21,640 Sate of plots 11,200 1,440 4,775 Scattering grounds 1, Interest 2,300 2,474 2,795 Donations Niche inscriptions 5,000 6,300 3,829 Other 1, ,284 80,700 80,831 63,908 Expenses Administration and general 2,700 32,796 39,373 Maintenance and care of plots 67,350 17,063 25,632 Amortization - 5,141 3,833 Cost of sates of inventory - 5,001 3,002 70,050 60,001 71,840 Annual surplus (deficit) 10,650 20,830 (7,932) Accumulated surplus, beginning of year - 44,611 52,543 Accumulated surplus, end of year $ - $ 65,441 S 44,611 The accompanying summary of significant accounting policies and notes are an integral part of these financial statements 49

54 (Note 1) Annual surplus (deficit) $ 10,650 $ 20,830 5 (7,932) For the year ended December31 Budget Statement of Change in Net Financial Assets 50 The accompanying summary of significant accounting policies and notes are an Integral part of these financial statements Net financial assets, end of year $ 27,792 $ 23, ,142 Net financial assets, beginning of year 17,142 17,142 21,241 Net change in net financial assets 10,650 6,349 (4,099) Amortization of tangible capital assets - 5,141 3,833 Acquisition of tangible capital assets - (19,622) Mount Hope Cemetery Corporation of the MunicipaLity of Brighton

55 Annual surplus (deficit) (Page 49) $ 20,830 $ (7,932) For the year ended December Cash flows from operating activities Statement of Cash Flows Uses Acquisition of tangible capital assets (19,622) - Cash, beginning of year 2,442 5,184 Cash, end of year $ 10,637 $ 2,442 The accompanying summary of significant accounting policies and notes are an integral part of these financial statements 51 Net change in cash 8,195 (2,742) Capital transactions 7,489 4,369 Decrease in - accounts receivab e 785 Decrease in due from - trust funds 582 Decrease in inventory 5,001 3,002 Increase in accounts payab e 2,488 - Sources (5,643) (3,012) Increase in due from trust funds - (594) Increase in accounts receivable (565) - Decrease in due to MunicipaLity of Brighton (4,484) (2,624) Decrease in accounts payable and accrued Liabilities - (388) 25,971 (4,099) Amortization 5,141 3,833 Items not involving cash Mount Hope Cemetery

56 December 31, 2015 Tangible Capital Assets Basis of Accounting Management Responsibility Nature of Business 52 fair value at the date of receipt and are also recorded as revenue. Tangible capital assets received as contributions are recorded at their Buildings Roads 15 years Machinery and equipment 5 to 20 years 50 years basis, over the expected useful life of the asset, as follows: amounts that are directly attributable to acquisition, construction, value, if any, of tangible capital assets is amortized on a straight-line development or betterment of the asset. The cost, Less residual Tangible capital assets are recorded at cost which includes all discharge existing liabilities or finance future operations. Net financial assets form a part of the financial position and is the Position includes all the assets and liabilities of the Cemetery. Financial assets are those assets which could provide resources to financial assets are normally used to deliver services. Their value lies information about the Cemeterys overall future revenue requirements combination of net financial assets and non-financial assets difference between financial assets and liabilities. This provides the Cemetery and the changes thereto. The Statement of Financial meet its objectives. The accumulated surplus is made up of the future cash inflows. They form part of the financial position as they with their service potential rather than their ability to generate provide resources that the government can employ in the future to The focus of PSAB financial statements is on the financial position of and its ability to finance activities and meet its obligations. Non of goods or services and the creation of a legal obligation to pay. recognized as they are incurred and measurable as a result of receipt revenues as they become available and measurable; expenditures are Sources of financing and expenditures are reported on the accrual basis of accounting. The accrual basis of accounting recognizes Accounting Board (PSAB) of the Canadian Institute of Chartered Affairs and Housing and standards established by the Public Sector prescribed for Ontario municipalities by the Ministry of Municipal management prepared in accordance with accounting policies The financial statements of the Cemetery are the representation of Professional Accountants. cemetery also provides burial services. requirements of the Ontario Cemeteries Act. It is subject to the legislative cemetery s objective is to provide a The cemetery is an unincorporated grounds for the people of Brighton, gracious and dignified burying Ontario and environs. The non-profit organization. The Summary of Significant Accounting Policies Mount Hope Cemetery

57 December 31, 2015 Inventory Inventory of Lots and niches of Mount Hope Cemetery are reflected at Summary of Significant Accounting Policies 5 policies noted above. included in these financial statements are the tangible capital asset Actual results could differ from these estimates. Significant estimates approximations. These have been made using careful judgment. financial statements necessarily involves the use of estimates and Measurement Uncertainty dependent upon future events, the preparation of periodic Estimates and Since precise determination of many assets and liabilities is recognized in the year in which the related expenses are incurred, earned. Revenue on plot sales is recognized when title transfers to Revenue Recognition The Cemetery follows the deferral method of accounting for contributions. Externally restricted contributions are recognized as revenue in the year in which the related expenses are recognized. Unrestricted investment income is recognized as revenue when the purchaser. Revenue on burials is recognized when the service is performed. Grant revenues received for operating expenses are cost of sates on a unit-by-unit basis in a manner expected to reduce the Lower of cost or net realizable value and this cost is allocated to the carrying value to nil when all of the units have been sold. Mount Hope Cemetery

58 1. Budget Figures December 31, 2015 Notes to Financial Statements 54 others, they are not presented as part of the Boards financial position or operations. Statement of Operations. As such balances are held in trust by the Board for the benefit of included in the Statement of FinanciaL Position nor have their operations been included in the Trust funds administered by the Board amounting to $219,239 ( financial assets represent the budget adopted by the Cemetery Board on January 29, 2015 with As a result, the budget figures presented in the statements of operations and change in net $214,604) have not been 3. Trust Fund Activities interest. The Cemetery bank account is held at a chartered bank and earns a nominal amount of 2. Cash Budget surplus per statement of operations $ 10,650 Budgeted transfers from accumulated surplus 10,700 Add: Budget for the year $ (50) 2015 accrual basis while PubLic Sector Accounting Standards now require a full accrual basis. The budget includes scheduled debt repayments which do not impact the statement of operations. consistent with that used to report actual results. The budget was prepared on a modified adjustments as follows: The budget adopted by the Cemetery Board on January 29, 2015 was not prepared on a basis Mount Hope Cemetery

59 Mount Hope Cemetery Notes to Financial Statements December 31, Tangible Capital Assets Land Buildings Machinery and Equipment Roads 2015 Cost beginning of year Additions during the year Disposals during the year Cost $ I $ 7,556 $ 25,868 $ 22,848 $ 56, ,622 19,622 - (3,904) (3,904) 5 1 $ 7,556 $ 25,868 $ 38,566 $ 71,991 Accumulated amortization beginning of year $ Amortization expense Accumulated amortization of disposals - $ 1,510 $ 15,299 $ 151 2,476 11,995 $ 28,804 2,514 5,141 (3,904) (3,904) Accumulated amortization end of year $ - Net book value beginning of year $ $ 1,661 $ 17,775 $ 10,605 $ 30,041 I $ 6,046 $ 10,569 $ 10,853 $ 27,469 Net book value end of year S 1 $ 5,895 $ 8,093 $ 27,961 $ 41,950 99

60 $ December 31, 2015 S 65,441 $ 44,611 Tangible capital assets 41,950 27,469 Operating fund $ 23,491 $ 17, Accumulated Surplus endofyear $ 1 $ 6,046 $ 10,569 $ 10,853 $ 27,469 Net book value beginning of year $ 1 5 6, ,045 $ 12,059 $ 31,302 Net book value endofyear $ - 1,510 $ 15,299 $ 11, ,804 AccumuLated amortization expense 151 2,476 1,206 3,833 beginning of year $ - $ 1,359 $ 12,823 $ 10,789 $ 24,971 Accumulated amortization Amortization Cost $ 1 $ 7,556 $ 25,868 $ 22,848 $ 56,273 Land Buildings Equipment Roads 2014 Machinery and 4. Tangible Capital Assets (Cont d) Mount Hope Cemetery Notes to FinanciaL Statements

61 Notes to Financial Statements 60 Statement of Financial Position 58 Statement of Continuity 59 Financial Statements Independent Auditor s Report 57 Contents For the year ended December 31, 2015 FinanciaL Statements Trust Funds Municipality of Brighton Corporation of the Mount Hope Cemetery Board

62 Members of Council, Inhabitants and Ratepayers of the Municipality of Brighton To the Members of the Mount Hope Cemetery Board, Independent Auditor s Report sector accounting standards. Chartered Professional Accountants, Licensed PubLic Accountants DD Cidaf December 31, 2015, and their continuity for the year then ended in accordance with Canadian public Opinion appropriateness of accounting policies used and the reasonableness of accounting estimates made the assessment of the risks of material misstatement of the financial statements, whether due to the entits 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 misstatement. Auditor s Responsibility obtain reasonable assurance about whether the financial statements are free from material 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 Management is responsible for the preparation and fair presentation of these financial statements in Management s Responsibility for the Financial Statements accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free position as at December 31, 2015 and the statement of continuity for the year then ended and notes I BD TeL: BOO Canada LLP Fax: Kent Street W mit-free: P0 Box Lindsay ON K9V 453 Canada We have audited the accompanying financial statements of the Corporation of the Municipality of Brighton Mount Hope Cemetery Board Trust Funds, which comprise the statement of financial to financial statements. from material misstatement, whether due to fraud or error. Our responsibility is to express an opinion on these financial statements based on our audit. We 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 fraud or error. In making those risk assessments, the auditor considers internal control relevant to opinion on the effectiveness of the entitys internal control. An audit also includes evaluating the by management, as welt 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. In our opinion, the financial statements present fairly, in all material respects, the financial position of the Mount Hope Cemetery Board Trust Funds as at Lindsay, Ontario August 15, 2016 EDO Canada LLP, a Canadian limited liability partnership, isa member of BDO International Limited, a UK company limited by guarantee, and forms part of the international EDO network 01 independent niember firms.

63 December31 Care Monument PerpetuaL Statement of Financial Position Trust Funds The accompanying notes are an integra part of these financia statements. 58 Chair On behalf of the Board Due to Cemetery Board $ 369 $ - $ 192,897 $ 26,711 $ 219,608 $ 214,604 $ 369 $ - $ 192,897 $ 26,711 $ 219,608 $ 214,604 Fund balance 192,528 26, , ,604 Liabilities and Fund Balances Due from Cemetery Board Cash $ 192,897 $ 26,711 $ 219,608 $ 214,378 Financial Assets Mount Hope Cemetery Board

64 Mount Hope Cemetery Board Trust Funds Statement of Continuity Perpetual For the year ended December31 Care Monument Fund Balance, beginning of year $ 189,773 $ 24,831 $ 214,604 $ 207,593 Revenues Monument care ,176 SaLe of plots and niches 2,730 1,280 4,010 5,810 Interest 2, ,309 2,633 Scattering grounds ,787 2,157 6,944 9,644 Expenditures Transfer to Cemetery Board 2, ,309 2,633 Fund Balance, end of year $ 192,528 $ 26,711 $ 219,239 $ 214,604 On behalf of the Board Chair The accompanying notes are an integral part of these financial statements. 59

65 1. Basis of Accounting December 31, 2015 Notes to Financial Statements Trust Funds Revenue and expenditures are reported on the accrual basis of accounting which recognizes to pay. Revenues for the Mount Hope Cemetery trust funds occur when a cemetery plot is sold or when an interment occurs. 2. Perpetual Care Trust 60 investment income earned on the funds used to maintain the cemeteries. at Mount Hope Cemetery Board. The capital amounts are to be kept intact in perpetuity, with These trust funds represent a portion of the sale of cemetery plots and monument foundations incurred and measurable as a result of goods or services and the creation of a LegaL obligation revenues as they become available and measurable; expenses are recognized as they are Mount Hope Cemetery Board