Attachment #1 To Report No. HC-10-08

Transcription

1 BALANCE SHEET as at December 31, 2007 (with comparative figures as at December 31, 2006) Attachment #1 To Report No. HC ASSETS Cash and cash equivalents $ 1,765,770 $ 2,979,040 Investments (Note 2) 11,568,526 10,524,603 Accounts receivable (Note 4) 388, ,371 Government subsidy receivable - 27,358 Prepaid expenses 193, ,244 Total current assets 13,916,720 14,127,616 Income producing properties (Schedule 1) 70,628,072 72,697,176 TOTAL ASSETS $ 84,544,792 $ 86,824,792 LIABILITIES AND EQUITY Accounts payable $ 2,225,564 $ 2,426,503 Government subsidy payable 429, ,760 Deferred revenue - Strong Communities - 709,411 Current portion of mortgages payable (Note 5) 2,094,632 2,078,988 Total current liabilities 4,749,994 5,664,662 Mortgages payable (Note 5) 68,658,195 70,742,944 Total liabilities 73,408,189 76,407,606 Contributed capital 1,000 1,000 Reserve for replacement of capital equipment (Note 7) 10,494,784 9,063,461 Non-Profit Operating reserve (Note 7) 220,500 - Accumulated surplus 420,319 1,352,725 Total equity 11,136,603 10,417,186 TOTAL LIABILITIES AND EQUITY $ 84,544,792 $ 86,824,792 On behalf of the Board: J. Sheehy, Treasurer J. Knoll, President C. D'Amelio, Vice-President See accompanying notes to financial statements.

2 STATEMENT OF OPERATIONS AND SURPLUS (with comparative figures for the year ended December 31, 2006) BUDGET ACTUAL ACTUAL REVENUES Government subsidies $ 8,145,398 $ 7,686,684 $ 7,643,481 Rental revenue 10,601,466 10,922,543 10,652,934 Rent Supplement - Commercial 1,048, ,754 1,015,788 Rent Supplement - Strong Communities 1,486, ,341 1,341,809 Rent Supplement - Housing Allowance 209, ,571 41,677 Rent Supplement - Administration fee 104,242 62,378 58,308 Oakville Senior Citizen Residence (Note 3) 376, , ,068 Transfer from rent stabilization fund - - 4,087 Non-rental revenue: Interest earned on working capital 91, , ,257 Laundry and parking 46,038 45,842 48,245 Other 29,957 37,140 42,888 TOTAL REVENUES 22,139,839 21,139,343 21,403,542 EXPENDITURES Mortgage interest 3,308,372 3,248,288 3,397,488 Municipal taxes 2,978,512 2,963,170 2,848,564 Administrative overhead 2,216,260 2,076,826 1,820,674 Materials and services 2,559,563 2,669,399 2,495,626 Amortization of capital costs 2,069,104 2,069,104 1,956,467 Utilities 2,474,576 2,147,292 2,146,608 Maintenance 896, , ,630 Insurance 219, , ,383 Bad debts 100,000 82,578 86,521 Rent Supplement - Commercial 1,048, ,754 1,011,642 Rent Supplement - Strong Communities 1,486, ,341 1,341,809 Rent Supplement - Housing Allowance 209, ,271 38,845 Other 31,310 48,374 60,636 TOTAL EXPENDITURES 19,597,761 18,187,458 18,246,893 NET REVENUE 2,542,078 2,951,885 3,156,649 Net transfers to capital reserves Halton Housing Corporation (1,765,523) (1,765,523) (1,722,460) Oakville Senior Citizen Residence (376,700) (366,188) (388,068) Halton Non-Profit Housing Corporation (399,855) (399,855) (390,100) Total transfers to capital reserves (2,542,078) (2,531,566) (2,500,628) Accumulated surplus, beginning of year 1,352,725 1,352,725 1,322,500 Surplus for the year - 420, ,021 Transfer to Non-Profit Operating Reserve (220,500) (220,500) - Transfer to Capital Reserve (476,204) (476,204) - Prior year surplus transfer to Capital Reserve (656,021) (656,021) (625,796) Accumulated surplus, end of year $ - $ 420,319 $ 1,352,725 See accompanying notes to financial statements.

3 STATEMENT OF CHANGES IN FINANCIAL POSITION (with comparative figures for the year ended December 31, 2006) Cash provided by (used in): OPERATIONS Net surplus for the year $ 420,319 $ 656,021 Items not involving cash outlay: Transfer of rent stabilization funds to operating - (4,087) Amortization of capital costs 2,069,104 1,956,467 Transfer to capital reserves 2,531,566 2,500,628 Change in non-cash operating working capital: (Increase) Decrease in non-cash current assets 41,549 (58,169) Increase (Decrease) in accounts payable (220,901) 969,315 Increase (Decrease) in deferred revenue (709,411) 259,016 NET INCREASE IN CASH FROM OPERATIONS 4,132,226 6,279,191 INVESTING Increase in investments (1,043,924) (394,480) Capital expenses (2,620,830) (2,360,967) NET DECREASE IN CASH FROM INVESTING (3,664,754) (2,755,447) FINANCING Repayment of mortgage principal (2,069,104) (1,956,467) Interest earned on rent stabilization funds Interest earned on reserve for capital replacement 387, ,988 NET DECREASE IN CASH FROM FINANCING (1,680,742) (1,606,687) Net change in cash and cash equivalents (1,213,270) 1,917,057 Opening cash and cash equivalents 2,979,040 1,061,983 CLOSING CASH AND CASH EQUIVALENTS $ 1,765,770 $ 2,979,040 See accompanying notes to financial statements.

4 STATEMENT OF CAPITAL OPERATIONS (with comparative figures for the year ended December 31, 2006) REVENUES BUDGET ACTUAL ACTUAL Transfer from reserves $ 2,621,908 $ 2,620,830 $ 2,360,967 TOTAL REVENUES 2,621,908 2,620,830 2,360,967 EXPENDITURES Appliances 73,144 79,800 46,813 Balcony and deck repairs ,246 Boiler replacement 22,695 9,360 16,255 Building general 585, , ,948 Carpet replacement 40,334 54,107 88,921 Electrical systems 27,587 9,692 7,315 Exterior reparation 211, , ,730 Fence repairs 5,844 5,343 28,427 Flooring 252, , ,086 Foundation 5,382 5,382 - Furnace replacement 140, , ,130 Garage repairs 69,667 31,588 44,427 Grounds 287, , ,862 Heating and plumbing 97,805 90, ,286 Interior/exterior painting 37,249 22, ,563 Interior reparation 103,937 82, ,237 Landscape upgrade 91,435 85,674 91,405 Interlocking 30,457 16,472 8,936 Playgrounds - - 9,480 Roof reparation 198, , ,253 Tub surround replacement 126,149 52, ,131 Window replacement 48,224 38,145 51,041 Oakville Senior Citizen Residence Building general (Note 3) 165, , ,475 TOTAL EXPENDITURES $ 2,621,908 $ 2,620,830 $ 2,360,967 See accompanying notes to financial statements.

5 SCHEDULE 1 - INCOME PRODUCING PROPERTIES as at December 31, 2007 Income producing properties recorded on the balance sheet are composed of the following: Buildings and Accumulated 2007 Property Land Equipment Subtotal Amortization Total The Abbeyview $ 936,415 $ 5,886,885 $ 6,823,300 $ (1,543,394) $ 5,279,906 Walkers Fields 835,298 5,000,658 5,835,956 (1,314,908) 4,521,048 Sheridan Woods 1,647,440 4,469,547 6,116,987 (1,216,262) 4,900,725 Golden Briar Height 3,198,917 7,595,289 10,794,206 (2,283,728) 8,510,478 Walkers Landing 4,644,895 11,569,648 16,214,543 (3,395,070) 12,819,473 Bray's Lane 2,229,012 4,761,179 6,990,191 (1,295,264) 5,694,927 Maple Crossing 3,736,218 7,567,370 11,303,588 (2,073,045) 9,230,543 Donaghey Square 1,187,837 2,675,192 3,863,029 (672,266) 3,190,763 Glen Valley Place 1,982,519 4,333,254 6,315,773 (1,103,723) 5,212,050 Wellington Terrace 2,375,117 11,280,342 13,655,459 (2,387,300) 11,268,159 Total $ 22,773,668 $ 65,139,364 $ 87,913,032 $ (17,284,960) $ 70,628,072

6 1. INCORPORATION The Corporation is incorporated with share capital under the Ontario Business Corporations Act to provide and operate housing accommodation primarily for persons of low and moderate income. The Corporation s shares are 100% owned by the Region of Halton. The Corporation is exempt from tax under the Federal Revenue Tax Act. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Accrual Basis of Accounting The Corporation follows the accrual basis of accounting and the accounting policies as contained in the Operating Guidelines with the Province of Ontario. The most significant of the policies are as follows: (b) Basis of Presentation The statement of operations and surplus reflects the results of the operations of the Walkers Fields, The Abbeyview, Sheridan Woods, Golden Briar Heights, Walkers Landing, Bray s Lane, Maple Crossing, Donaghey Square, Glen Valley Place, Wellington Terrace, Holmesway Place, John Armstrong Terrace, Margaret Drive, Sargent Court, The Bruce Apartment, Longmoor Avenue, John R. Rhodes Residence, Harmony Court, Maurice Drive, Burloak Drive, Braeside, Pinedale, Lakeview Villa, Elm Road, Kin Court, and Brant Court properties. (c) Investments Investments of $11,568,526 ( $10,524,603) are carried at cost. The investments have a market value of $11,470,377 ( $10,543,101) at the end of the year. The market value represents the realizable value of the investments if they were to be sold at December 31, (d) Amortization of Capital Costs The Corporation follows the amortization policy for rental property prescribed by the Ministry of Municipal Affairs and Housing. Under this policy, the cost of land, buildings and equipment is amortized over the terms of the mortgage secured to finance such assets. The annual charge for amortization of capital cost is equal to the annual principal repayments on the mortgage. (e) Deferred Revenues Revenues are normally recognized in the year in which they are earned. In the case of grants from other governments, revenue recognition normally occurs when the Corporation has incurred the expenditures to which the grant entitlement is attached, or has otherwise met the necessary requirements upon which entitlement to the grant is based.

7 (f) Reserves As prescribed in the Social Housing Reform Act, reserve funds are established for the replacement of capital equipment and for operating expenditure. Maximum annual contributions and any expenditure from the reserves are approved by the Board of Directors. (g) Use of Estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. 3. OAKVILLE SENIOR CITIZENS RESIDENCES (OSCR) OSCR is a non-profit corporation that operates subsidized senior citizens housing projects in the Town of Oakville. The operations of OSCR are governed by an independent Board and it is funded independently through rental income and subsidies from the Province. Capital maintenance and improvements to OSCR s buildings are the responsibility of the Corporation and such expenditures on behalf of OSCR are reflected in the Statement of Capital Operations. As a result of this responsibility, OSCR is required to remit any net surpluses it has for the year to the Corporation. The net surplus for the year is recorded as revenue on the Statement of Operations and Surplus. 4. ACCOUNTS RECEIVABLE Accounts receivable recorded on the balance sheet are composed of the following: Goods and Services Tax $ 173,030 $ 228,020 Oakville Senior Citizens Residence 31,232 68,994 Other Receivables 55,963 57,947 Rents 128,330 58,410 $ 388,555 $ 413,371

8 5. MORTGAGES PAYABLE Mortgages are secured by the income producing properties of the Corporation. As at December 31, 2007, the unpaid balances of these mortgages are as follows: Walkers Fields CMHC amortized over 20 years with a renewal date of June 1, 2015, at 4.39% with blended monthly payments of $31,289, retires January $ 4,520,767 $ 4,695,430 The Abbeyview CMHC amortized over 19 years with a renewal date of February 1, 2011, at 4.12% with blended monthly payments of $34,564, retires December ,279,376 5,474,153 Sheridan Woods CMHC amortized over 20 years with a renewal date of March 1, 2017, at 4.42% with blended monthly payments of $30,372, retires April Golden Briar Heights Bank of Nova Scotia amortized over 22 years with a renewal date of September 1, 2015, at % with blended monthly payments of $53,299, retires September ,748,408 8,516,630 4,895,981 8,785,429 Walkers Landing Bank of Nova Scotia amortized over 25 years with a renewal date of March 1, 2008, at 4.594% with blended monthly payments of $81,453, retires March ,917,090 13,297,279 Bray s Lane Toronto Dominion amortized over 30 years with a renewal date of July 1, 2028, at 5.94% with blended monthly payments of $39,535, retires July ,663,163 5,800,874

9 5. MORTGAGES PAYABLE (continued) Maple Crossing Bank of Nova Scotia amortized over 22 years with a renewal date of September 1, 2012 at 4.746% with blended monthly payments of $56,513, retires September $ 9,227, $ 9,471,561 Donaghey Square Bank of Nova Scotia amortized over 24 years with a renewal date of September 1, 2015, at % with blended monthly payments of $19,329, retires September ,279,349 3,368,851 Glen Valley Place CMHC amortized over 27 years with a renewal date of June 1, 2008, at 4.46% with blended monthly payments of $31,138, retires May ,310,183 5,445,912 Wellington Terrace Royal Bank amortized over 27 years with a renewal date of January 1, 2008, at 4.436% with blended monthly payments of $66,647, retires January ,290,056 11,586,462 70,752,827 72,821,932 Less: current portion (2,094,632) (2,078,988) Income Producing Properties $ 68,658,195 $ 70,742,944 The annual principal repayments, assuming refinancing at the end of the term, for each of the five years subsequent to December 31, 2007 are as follows: $ 2,094, ,165, ,273, ,400, ,523,651

10 6. FORMER HALTON HOUSING CORPORATION INCOME PRODUCING PROPERTIES The income producing properties held by the former Halton Housing Corporation and passed through to the Corporation were originally financed by the Province of Ontario through general obligation provincial debentures. At the time of the transfer of ownership of the Halton Housing Corporation to the Region of Halton, the Province did not transfer the responsibility for the repayment of these debentures. Accordingly, neither the value of the former Halton Housing Corporation income producing properties nor the value of the provincial debentures associated with them have been recorded on the Corporation s financial statements. 7. RESERVES FOR REPLACEMENT OF CAPITAL EQUIPMENT AND OPERATING EXPENDITURES A capital equipment replacement reserve and operating reserve fund have been established through Provincial and Board policy. Contributions to and withdrawals from the fund are governed by Provincial policy and must have Board approval. Interest earned on the balance of the capital fund is recorded as income of the fund. At December 31, 2007 the transactions and balances of the reserves are as follows: Capital Replacement reserve: Opening balance: $ 9,063,461 $ 7,952,311 Interest earned 388, ,780 Contributions from operations 2,531,566 2,500,628 Rent Stabilization (transfer to operating) - (4,087) Transfer to capital (2,620,830) (2,360,967) Transfer surplus to reserve 1,132, ,796 Capital Replacement reserve at year end $ 10,494,784 $ 9,063,461 Operating Reserve: Opening balance: $ - $ - Transfer surplus to reserve 220,500 - Operating Reserve at year end $ 220,500 $ -

11 8. COMPARATIVE FIGURES Certain comparative figures have been reclassified to conform with the financial statement presentation adopted in the current year.