Village of New Minas

Transcription

1 New Minas, Nova Scotia Financial Statements

2 Contents Section Consolidated Financial Statements Non-Consolidated Financial Statements Water Commission A B C

3 New Minas, Nova Scotia Consolidated Financial Statements Section A

4 Contents Page Independent Auditor's Report A-1 Consolidated Statement of Operations A-2 Consolidated Statement of Financial Position A-3 Consolidated Statement of Changes in Net Financial Assets A-4 Consolidated Statement of Cashflow A-5 Notes to the Consolidated Financial Statements A-6 to A-10

5 P.O. Box Commercial Street Berwick, NS B0P 1E0 Tel: (902) Fax: (902) INDEPENDENT AUDITOR'S REPORT To the Chairman and Commissioners of the We have audited the accompanying financial statements of the, which comprise the consolidated statement of financial position as at, the consolidated statement of financial activities and the consolidated statement of changes in financial position for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian generally accepted accounting principles and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 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 audit opinion. Opinion In our opinion these financial statements present fairly, in all material respects, the financial position of the Village of New Minas as at and the results of its operations for the year then ended, in accordance with Canadian accounting standards for the public sector. Berwick, Nova Scotia June 22, 2017 A-1 Licensed Public Accountants Registered Municipal Auditor

6 Consolidated Statement of Operations Year Ended 2017 Budget Actual Actual Revenue Taxes 2,120,226 $ 2,130,337 $ 2,072,508 Grants in lieu of taxes 46,221 38,642 43,676 Sales of services 665, , ,817 Other revenue from own sources 268, , ,629 Conditional transfers from other governments 297, , ,721 Grants and government transfers - 348, ,028 Gain on sale of equipment ,066 3,397,920 3,828,894 3,823,445 Expenditures General government services 723, , ,426 Protection 239, , ,849 Transportation 96,815 72,905 57,357 Environmental health 565, , ,524 Recreational and cultural services 593, , ,617 Water transmission and purification 346, , ,469 Amortization 300, , ,115 Other fiscal services 269, , ,315 3,133,855 3,358,245 3,365,672 Annual Surplus 264,065 $ 470,649 $ 457,773 A-2

7 Consolidated Statement of Financial Position Financial Assets Current Cash $ 2,774,304 $ 2,609,758 Receivables 894, ,517 3,669,142 3,034,275 Liabilities Current Payables and accruals 38,263 72,293 Deferred revenue 11,366-49,629 72,293 Net Financial Assets 3,619,513 2,961,982 Non-Financial Assets Prepaid expenses 63,442 61,942 Property and Equipment (note 2) 13,914,121 14,102,502 $17,597,076 $17,126,426 Surplus Reserve Funds (note 3) $ 1,304,409 $ 686,160 Deferred assistance 1,709,107 1,556,536 Investment in Capital Assets (note 4) 13,546,431 13,654,592 Surplus 1,037,129 1,229,139 $17,597,076 $17,126,427 Commitments (note 5) On behalf of the, Chairman, Commissioner A-3

8 Consolidated Statement of Changes in Net Financial Assets Year Ended 2017 Budget Actual Actual Annual Surplus 264,065 $ 470,649 $ 457,773 Add (Deduct): Acquisition of tangible capital assets (572,572) (573,672) (941,040) Amortization of tangible capital assets 300, , ,115 Gain on sale of assets - (855) (2,066) Proceeds on sale of assets - 14,000 11,000 Use (acquisition) of prepaid assets - (1,499) (1,399) Increase (decrease) in net assets (8,447) 657, ,383 Net Financial Assets, beginning of year 2,961,982 2,705,599 Net Financial Assets, end of year $ 3,619,513 $ 2,961,982 A-4

9 Consolidated Statement of Cashflow Year Ended Cash flow from operating activities: Annual surplus $ 470,649 $ 457,773 Gain on disposal of assets (855) (2,066) Depreciation and amortization 748, ,115 Change in Accounts receivable (470,321) 340,839 Prepaid expenses (1,499) (1,399) Payables and accruals (34,030) (139,625) 712,852 1,387,637 Cash flow from investing activities: Proceeds on sale of assets 14,000 11,000 Purchase of tangible capital assets (573,672) (941,040) (559,672) (930,040) Cash Increase 153, ,597 Cash and Equivalencies, beginning of year 2,609,758 2,152,161 Cash and Equivalencies, end of year $ 2,762,938 $ 2,609,758 A-5

10 Notes to the Consolidated Financial Statements 1. Significant Accounting Policies Principles and basis of consolidation The consolidated financial statements are presented to provide the reader with an overview of the ' total financial operations. It is recommended that for a detailed review and analysis, the reader refer to the separate financial statements for each of the various funds. The consolidated financial statements of the are prepared in accordance with generally accepted accounting principles for local governments, as recommended by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants and with accounting principles prescribed for water utilities by the Nova Scotia Utility and Review Board. The consolidated accounts include the New Minas Water Commission in which the Village has a 100% interest. Basis of accounting The financial statements have been prepared using the accrual basis of accounting. Financial Instruments The Village's financial instruments consist of cash, short term deposits, accounts receivables, accounts payables and accrued liabilities. Unless otherwise noted, it is managements's opinion that the Village is not exposed to significant interest, currency or credit risks arising from these financial instruments. The fair value of these financial instruments approximate their carrying values, unless otherwise noted. Use of Estimates The preparation of the financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. The most significant accounting estimates in these financial statements include allowance for doubtful accounts and estimated useful life of tangible capital assets. Government transfers Government transfers are recognized in the consolidated financial statements in the period in which events giving rise to the transfer occur, providing the transfers are authorized, any eligibility criteria have been met, and reasonable estimates of the amounts can be made. A-6

11 Notes to the Consolidated Financial Statements 1. Significant Accounting Policies (continued) Non-Financial Assets Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year and are not intended for sale in the normal course of operations. Tangible Capital Assets Tangible capital assets are recorded at cost which includes all amounts that are directly attributed to acquisition, construction, development or betterment of the asset. The cost, less residual value, of the tangible capital asset are amortized on a straight line basis over their estimated useful life as follows: General Water Land improvements 20 to 50 years Wells 25 to 40 years Buildings 40 years Pumping stations 50 years Machinery and equipment 5 to 10 years Water mains 75 years Sidewalks 20 years Hydrants 75 years Sewer system 50 years Skateboard Park 20 years Leasehold improvements 20 years The Water Commission's depreciation is calculated based on rates prescribed by the Nova Scotia Utility and Review Board. The depreciation charge in the Water and Sewer Operating Fund less amortization of deferred assistance is transferred to a special bank account in the Water and Sewer Capital Fund which is used to help fund replacement of existing plant and equipment. Deferred Contribution Assistance towards the acquisition of fixed assets by the Water and Sewer Commission received prior to January 1, 1985, and subsequent to April 1, 2007, is amortized to income on the same basis as the related fixed asset. Approval has been obtained from the Nova Scotia Utility and Review Board to exempt the Commission from adjusting for any other assistance received prior to January 1, Deferred Revenue Deferred revenue relates to funding received for projects that have not been completed. A-7

12 Notes to the Consolidated Financial Statements 2. Tangible Capital Assets Cost Land and buildings $ 1,989,011 $ 1,931,849 Recreation Facility 3,351,317 3,351,317 Leasehold improvements 9,674 9,674 Machinery and equipment 1,507,096 1,263,227 Sewer system 2,447,567 2,447,567 Skateboard park 80,565 80,565 Splash park 161, ,827 Street improvements and paving 2,438,723 2,407,396 Signs 46,868 36,785 Street lights 407, ,185 Water system 10,455,475 10,281,643 Other 264, ,547 23,159,706 22,628,582 Deduct: Accumulated depreciation 9,245,585 8,526,080 $13,914,121 $14,102,502 A-8

13 Notes to the Consolidated Financial Statements 3. Reserve Funds General Water Total Total Equipment Balance, beginning of year $ 67,712 $ 7,677 $ 75,389 $ 75,248 Transfer to equipment reserve 30,000-30,000 30,000 Transfer to capital fund - 10,000 10,000 (29,859) Balance, end of year $ 97,712 $ 17, ,389 75,389 Operating Fund Balance, beginning of year $ - $ - Transfer from operating surplus 500,000 - Balance, end of year $ 500,000 $ - Capital Fund Balance, beginning of year 610, ,357 Transfer from operating fund 156, ,414 Transfer to capital (78,741) - Balance, end of year 689, ,771 $1,304,409 $ 686,160 A-9

14 Notes to the Consolidated Financial Statements 4. Investment in Capital Assets Balance, beginning of year $13,654,592 $13,373,599 Add (deduct): Capital grants 40, ,351 Federal Gas Tax 104, ,831 Amortization of deferred assistance 50,562 - Transfer from operating 65, ,944 Amortization (448,848) (432,058) Gain on disposal of assets 855 2,066 Transfer from capital reserve fund 78,741 29,859 Balance, end of year $13,546,431 $13,654, Commitments The Village contributes 6% of the gross salary of all full time employees to the Municipal Employees Pension Plan, a defined contribution pension plan. Such contributions are refundable if the employee terminates employment prior to vesting. During the year, the Village has contributed $35,617 (2016 -$41,237). The Village has the following lease commitments per year for office equipment leases: 6. Other Matters 2018 $ 5, , The total remuneration and expenses paid to each commissioner and the senior management official are as follows: Village and water commissioners $ 41,872 Clerk/Treasurer 66,076 $ 107, Comparative figures The comparative figures have been adjusted to conform to the financial statement presentation adopted in the current year. A-10

15 New Minas, Nova Scotia Non-Consolidated Financial Statements Section B

16 Contents Page Auditors' Report on Supplemental Financial Information B-1 General Section Statement of Operations B-2 Operating Fund Statement of Financial Position B-3 Capital Fund Statement of Financial Position B-4 Statement of Investment in Capital Assets B-5 Schedules to Statement of Operations B-6 to B-8 Special and Trust Funds Special Reserve Fund - Equipment Reserve Statement of Financial Position B-9 Statement of Equipment Reserve B-9 Capital Reserve Fund Statement of Financial Position B-10 Statement of Capital Reserve Fund B-10 Notes to Non-Consolidated Financial Statements B-11 to B-12 Statement of Capital Financing B-13

17 P.O. Box Commercial Street Berwick, NS B0P 1E0 Tel: (902) Fax: (902) Auditors' Report on Supplemental Financial Information To the Chairman and Commissioners of Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information included in the Schedules is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such supplementary information has been subjected to the auditing procedures applied in the audit of the basic consolidated financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic consolidated financial statements taken as a whole. Berwick, Nova Scotia June 22, 2017 Licensed Public Accountants Registered Municipal Auditor B-1

18 General Section Statement of Operations Year Ended 2017 Page Budget Actual Actual Revenue General tax rates B-6 $ 2,120,226 $ 2,130,337 $ 2,072,508 Grants in lieu of taxes B-6 46,221 38,642 43,676 Conditional transfers from Federal and Provincial governments and agencies B-6 4,810 4,815 1,590 Conditional transfers from other governments and agencies B-6 292, , ,131 Other revenue from own sources B-7 265, , ,556 2,729,510 2,752,631 2,678,461 Expenditures General government services B-7 723, , ,426 Protective services B-7 498, , ,921 Transportation services B-8 96,815 72,905 57,357 Environmental health services B-8 565, , ,524 Recreational and cultural services B-8 593, , ,617 Fiscal services B-8 252, , ,358 2,729,510 2,547,691 2,785,203 Operating (Deficit) Surplus $ - $ 204,940 $ (106,742) B-2

19 General Section Operating Fund Statement of Financial Position Assets Current Cash $1,391,481 $ 789,780 Accounts receivable (note 2) 270, ,501 Due from equipment reserve - 3,068 Due from Water Utility capital fund 4,625 - Prepaid expenses 48,935 47,303 $1,715,647 $1,076,652 Liabilities Current Payables and accruals 27,225 43,816 Due to Water Utility operating fund 424, ,528 Due to Capital reserve 156,990 - Due to Equipment reserve 26,933 - Due to Water Capital Due to Capital Fund 185, ,806 Deferred revenue 11, , ,256 Surplus Operating Reserve 500,000 - Operating Surplus (note 4) 383, ,396 Commitments (note 5) $1,715,647 $1,076,652 On behalf of the, Chairman, Commissioner B-3

20 General Section Capital Fund Statement of Financial Position Assets Current Accounts receivable $ 109,302 $ 55,302 Hst receivable 9,745 (17,070) Hst receivable - Recreation facility (3,212) (3,212) Due from general operating fund 185, ,806 Due from capital reserve fund 78, , ,826 Tangible Capital Assets (note 3) 7,430,438 7,599,717 $ 7,810,782 $ 7,765,543 Liabilities Current Bank indebtedness $ 800,606 $ 564,926 Accounts Payable - General capital - 28,164 Due to water capital 33,208 33, , ,298 Equity Investment in Capital Assets (page B-5) 6,976,968 7,139,245 $ 7,810,782 $ 7,765,543 On behalf of the, Chairman, Commissioner B-4

21 General Section Statement of Investment in Capital Assets Balance, beginning of year $ 7,139,245 $ 6,858,250 Add (Deduct): Capital grants 40, ,039 Build Canada Fund - 46,314 Amortization (448,848) (432,058) Transfer from capital reserve fund 78,741 29,859 Federal Gas Tax 104, ,831 Gain (loss) on sale of equipment (2,699) 2,066 Transfer from operating 65, ,944 Balance, end of year $ 6,976,968 $ 7,139,245 B-5

22 General Section Schedules to Statement of Operations Year Ended 2017 Budget Actual Actual Taxes Assessable property Residential $ 946,440 $ 949,590 $ 931,470 Commercial Based on taxable assessment 845, , ,793 Resource Based on taxable assessment 7,316 7,305 7,102 Special assessments Environmental Health Services 320, , ,143 $ 2,120,226 $ 2,130,337 $ 2,072,508 Grants in Lieu of Taxes Federal government agencies $ 9,515 $ 8,819 $ 8,125 Provincial government agencies 17,606 16,772 17,009 HST recovery 19,100 13,051 18,542 $ 46,221 $ 38,642 $ 43,676 Conditional Transfers from Federal and Provincial Governments and Agencies Federal government agencies Summer Career Placement $ 4,810 $ 4,815 $ 1,590 $ 4,810 $ 4,815 $ 1,590 Conditional Transfers from other Governments and Agencies Municipality of the County of Kings Fire protection $ 239,583 $ 239,583 $ 239,583 Crosswalk service 8,450 9,552 8,448 Recreation 37,000 36,800 34,100 Community Parks development grant 7,400 8,134 - $ 292,433 $ 294,069 $ 282,131 B-6

23 General Section Schedules to Statement of Operations Year Ended 2017 Budget Actual Actual Other Revenue from own Sources Facility rentals $ 77,000 $ 69,412 $ 78,642 Interest 13,000 13,386 14,253 Miscellaneous 8,480 13,117 18,163 Recreation 167, , ,498 $ 265,820 $ 284,768 $ 278,556 General Government Services Legislative Chairman Stipend $ 8,800 $ 8,800 $ 8,800 Commissioners Stipend 26,400 26,400 26,400 35,200 35,200 35,200 General administrative Administrative 198, , ,740 Financial management 88,900 77,984 73,475 Crosswalk guard services 13,941 12,810 14,056 Common services 249, , ,936 Other general administrative services 99,030 97, , , , ,463 Other general government services Grants to organizations and individuals 37,850 36,947 32,763 $ 723,008 $ 693,862 $ 672,426 Protective Services Fire protection Fire alarm systems $ 6,600 $ 12,283 $ 7,787 Water supply and hydrants 258, , ,072 Training 20,000 6,676 36,937 Fire station 71,686 73,770 58,525 Fire fighting equipment 117, , ,213 Other 23,360 22,407 21,387 $ 498,487 $ 479,166 $ 476,921 B-7

24 General Section Schedules to Statement of Operations Year Ended 2017 Budget Actual Actual Transportation Services Road transport Roads and streets $ 8,489 $ 7,155 $ 7,160 Snow Clearing 18,822 19,691 12,464 Sidewalks 46,944 31,845 32,542 Street lighting 22,560 14,214 5,191 $ 96,815 $ 72,905 $ 57,357 Environmental Health Services Sewage collection services $ 255,061 $ 191,594 $ 243,924 Central treatment plant operations 310, , ,600 $ 565,361 $ 501,594 $ 565,524 Recreational and Cultural Services Administration $ 305,475 $ 292,883 $ 248,055 Parks and playgrounds 288, , ,562 $ 593,718 $ 548,043 $ 498,617 Fiscal Services Transfer to capital fund $ 65,131 $ 65,131 $ 331,944 Transfer to equipment reserve fund 30,000 30,000 30,000 Transfer to Capital reserve fund 156, , ,414 $ 252,121 $ 252,121 $ 514,358 B-8

25 Special Reserve Fund - Equipment Reserve Section Statement of Financial Position Assets Cash $ 70,780 $ 70,780 Due from general operating fund 26,932 - $ 97,712 $ 70,780 Liabilities Due to general operating fund $ - $ 3,068 Reserve Reserve 97,712 67,712 $ 97,712 $ 70,780 Statement of Equipment Reserve Balance, beginning of year $ 67,712 $ 67,569 Add (Deduct): Transfer from operating 30,000 30,000 Transfer to capital fund - (29,857) Balance, end of year $ 97,712 $ 67,712 On behalf of the, Chairman, Commissioner B-9

26 Capital Reserve Fund Statement of Financial Position Assets Cash $ 610,771 $ 610,771 Due from general operating fund 156,990 - $ 767,761 $ 610,771 Liabilities Due to general capital fund $ 78,741 $ - Reserve Reserve 689, ,771 $ 767,761 $ 610,771 Statement of Capital Reserve Fund Balance, beginning of year $ 610,771 $ 458,357 Add (Deduct): Transfer from operating fund 156, ,414 Purchase of capital assets (78,741) - Balance, end of year $ 689,020 $ 610,771 On behalf of the, Chairman, Commissioner B-10

27 Notes to Non-Consolidated Financial Statements 1. Significant Accounting Policies The financial statements are prepared in accordance with generally accepted accounting principles for local governments, as recommended by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants. Revenue and Expenditures Major revenue and expenditures items are recorded on an accrual basis. Tangible Capital Assets Tangible capital assets are recorded at cost which includes all amounts that are directly attributed to acquisition, construction, development or betterment of the asset. The cost, less residual value, of the tangible capital asset are amortization on a straight line basis over their estimated useful life as follows: Land improvements Buildings Machinery and equipment Sidewalks Sewer system Skateboard Park Splash Park Leasehold improvements 20 to 50 years 40 years 5 to 10 years 20 years 50 years 20 years 20 years 20 years Allocation of Municipal Costs to Water Commission Fund Costs incurred, which benefit both the municipal unit and the Water Commission, are allocated on the basis of relative benefits. Interest is recorded on balances due between the municipal unit and the Water Commission at an annual rate of 8% on the outstanding balance at the end of each month. 2. Accounts receivable Sewer accounts receivable $ 78,809 $ 71,668 Taxes Receivable 50,926 75,720 Government of Canada 49,717 5,236 Department of Transportation 17,500 15,000 Other 73,654 68,877 $ 270,606 $ 236,501 B-11

28 Notes to Non-Consolidated Financial Statements 3. Tangible Capital Assets Cost Write Cost Accum Net Book Opening Additions Disposals Downs Closing Amortization Amort Value Land $ 677,264 $ - $ - $ - $ 677,264 $ - $ - $ 677,264 Land improvements 933,323 17, ,489 47, , ,134 Buildings 398,852 57, ,014 11, , ,734 Recreation facility 3,351, ,351,317 83, ,612 2,933,705 Signs 36,785 10, ,868 2,429 11,363 35,505 Machinery & equipment 908, ,848 (19,398) - 1,065, , , ,975 Sidewalks 1,921,657 5, ,927,451 96, ,312 1,064,139 Sewer System 2,422, ,422,027 48,441 1,491, ,145 Street Lights 407, ,185 27,146 80, ,791 Parking lot 281,236 8, ,602 11,242 53, ,537 Skateboard park 80, ,565 4,028 44,309 36,256 Splash park 146,827 14, ,678 8,084 15, ,253 Leasehold improvements 9, ,673-9,673 - $ 11,575,394 $ 289,270 $ (19,398) $ - $ 11,845,266 $ 448,848 $ 4,414,828 $ 7,430, Surplus Balance, beginning of year $ 678,396 $ 785,138 Add (Deduct): Transfer to operating reserve (500,000) - Operating surplus (deficit) 204,940 (106,742) Balance, end of year $ 383,336 $ 678, Commitments The Village contributes 6% of the gross salary of all full time employees to the Municipal Employees Pension Plan, a defined contribution pension plan. Such contributions are refundable if the employee terminates employment prior to vesting. During the year, the Village has contributed $26,712 ( $30,653). The Village has the following lease commitments per year for office equipment leases: 2018 $ 5, , B-12

29 General Section Statement of Capital Financing Year Ended Source Capital funding Capital bank $ - $ 15,619 Transfer from operating 65, ,944 Capital grants 145, ,184 Transfer from capital reserve fund 78,741 29,859 Accounts Payable - 28,164 Proceeds on sale of equipment - 11,000 $ 289,270 $ 765,770 Application Purchase of capital assets Sewer $ - $ 82,107 Automotive equipment 43, ,700 Buildings 57,162 33,678 Signs 10,083 - Land and land improvements 25,533 26,573 Generator 122,611 - Sidewalks 5, ,423 Tools and equipment 9,933 9,640 Street Lights - 19,177 Splash park 14, ,472 $ 289,270 $ 765,770 B-13

30 New Minas, Nova Scotia Water Commission Non-Consolidated Financial Statements Section C

31 Contents Page Auditors' Report on Supplemental Financial Information C-1 General Section Statement of Operations C-2 Operating Fund Statement of Financial Position C-3 Capital Fund Statement of Financial Position C-4 Statement of Investment in Capital Assets C-5 Schedules to Statement of Operations C-6 Special Fund Special Reserve Fund - Equipment Reserve C-7 Notes to Non-Consolidated Financial Statements C-8 to C-11 Statement of Capital Projects Financing C-12

32 P.O. Box Commercial Street Berwick, NS B0P 1E0 Tel: (902) Fax: (902) Auditors' Report on Supplemental Financial Statements To the Chairman and Commissioners of Water Commission Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information included in the Schedules is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such supplementary information has been subjected to the auditing procedures applied in the audit of the basic consolidated financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic consolidated financial statements taken as a whole. Berwick, Nova Scotia June 22, 2017 Licensed Public Accountants Registered Municipal Auditor C-1

33 Water Commission Statement of Operations Year Ended 2017 Page Budget Actual Actual Revenue Operating Metered sales $ 588,150 $ 647,564 $ 588,093 Public fire protection 258, , ,072 Other 77,190 76,171 70, , , ,889 Expenditures Operating Source of supply C-6 172, , ,754 Power and pumping C-6 122, , ,395 Transmission and distribution C-6 50,880 45,292 48,320 Administration C-6 269, , ,315 Depreciation 300, , , , , ,841 Operating profit 8, ,908 (3,952) Non-operating revenue Interest 3,070 3,142 3,073 Amortization of deferred assistance ,553 3,070 3,142 33,626 Non-operating expenditures Capital expenditure out of operations 10,000 10,000 - Deficit of prior year 1, ,940 10,000 - Operating Surplus For The Year $ - 103,050 29,674 Surplus, beginning of year 550, ,069 Surplus, end of year $ 653,793 $ 550,743 C-2

34 Water Commission Operating Fund Statement of Financial Position Assets Current Cash $ 215,741 $ 139,748 Accounts receivable (note 3) 269, ,583 Due from water capital fund - 30,553 Prepaid expenses 14,507 14,639 Due from general operating fund 424, ,528 Liabilities $ 923,441 $ 551,051 Current Payables and accruals $ 11,033 $ 308 Due to water equipment reserve 10,000 - Due to water capital fund 248, , Surplus Operating Surplus 653, ,743 Commitment (note 8) $ 923,441 $ 551,051 On behalf of the Commission, Chairman, Commissioner C-3

35 Water Commission Capital Fund Statement of Financial Position Assets Current Cash - Depreciation fund (note 2) $ 1,471,675 $ 1,471,675 Cash - Water capital fund - 84,253 Accounts receivable 239,233 10,413 1,710,908 1,566,341 Due from General Capital 33,208 33,208 Due to water operating fund 248,615 - Utility Plant in Service (note 4) 11,314,437 11,053,185 Due from General Operating Fund $13,307,168 $12,652,840 Liabilities Current Bank indebtedness -Water capital fund $ 193,215 $ - Due to water operating fund - 30,553 Due to general operating fund 4, ,840 30,553 Deferred Assistance (note 5) 1,709,107 1,556,536 Accumulated Allowance for Depreciation (note 6) 4,830,758 4,550,404 6,539,865 6,106,940 6,737,705 6,137,493 Equity Investment in Capital Assets (page C-5) 6,569,463 6,515,347 $13,307,168 $12,652,840 On behalf of the Commission, Chairman, Commissioner C-4

36 Water Commission Statement of Investment in Capital Assets Balance, beginning of year $ 6,515,347 $ 6,515,347 Add: Amortization deferred assistance 50,562 - Gain on disposal of equipment 3,554 - Balance, end of year $ 6,569,463 $ 6,515,347 C-5

37 Water Commission Schedules to Statements of Operations Year Ended 2017 Budget Actual Actual Source of supply Maintenance $ 56,940 $ 21,761 $ 41,702 Supplies and expenses 115,240 88, ,052 $ 172,180 $ 110,356 $ 144,754 Power and Pumping Power $ 122,980 $ 108,854 $ 119,395 Transmission and distribution Maintenance Mains $ 7,680 $ 3,372 $ 6,182 Other 26,820 30,204 28,412 Transportation expenses 16,380 11,716 13,726 $ 50,880 $ 45,292 $ 48,320 Administration Collection and service charges $ 3,100 $ 2,948 $ 2,757 Salaries and benefits 209, , ,778 General and office expenses 21,080 27,616 19,186 Regulatory expenses 1,590 1,590 1,590 Miscellaneous 16,020 11,886 12,821 Rent 10,010 10,010 10,012 Insurance 7,780 6,734 7,171 $ 269,270 $ 288,848 $ 289,315 C-6

38 Water Commission Special Reserve Fund - Equipment Reserve Section Assets Cash $ 7,677 $ 7,677 Due from Water operating 10,000 - $ 17,677 $ 7,677 Reserve Reserve, beginning of year $ 7,677 $ 7,677 Deduct: Transfer from operating 10,000 - Reserve, end of year $ 17,677 $ 7,677 On behalf of the Commission, Chairman, Commissioner C-7

39 1. Significant Accounting Policies Notes to Non-Consolidated Financial Statements The financial statements have been prepared to conform in all material respects to the accounting principles prescribed for water utilities by the Nova Scotia Utility and Review Board. Non consolidation Non-consolidated financial statements of the Water and Sewer Commission are prepared by management in accordance with Canadian generally accepted accounting principles for local governments and the Water Utility Accounting and Reporting handbook of the Nova Scotia Utility and Review Board, as required under Section Significant aspects of the accounting policies adopted by the are as follows; Basis of Accounting Major revenue and expenditures items are recorded on an accrual basis. Interest earned on the depreciation fund is recorded as non-operating revenue in the Water Commission Operating Fund. Principal and interest payments relating to long term debt are recorded as an expense when paid. Utility Plant Utility plant and projects in progress are recorded at the utility's gross cost. Funds received through capital assistance programs, cost sharing arrangements or loan forgiveness prior to January 1, 1985, and subsequent to April 1, 2007 are treated as additions to deferred assistance. The Commission charges depreciation based on rates prescribed by the Nova Scotia Utility and Review Board. The depreciation charge in the Water Operating Fund less amortization of deferred assistance is transferred to a special bank account in the Water and Sewer Capital Fund which is used to help fund replacement of the existing plant. Depreciation is not recorded on fixed assets donated to the Water and Sewer Commission after January 1, Approval has been obtained from the Nova Scotia Utility and Review Board to continue recording depreciation on fixed assets donated prior to January 1, Amortization Assistance towards the acquisition of fixed assets, received prior to January 1, 1985, and subsequent to April 1, 2007, is amortized to income on the same basis as the related fixed asset. Approval has been obtained from the Nova Scotia Utility and Review Board to exempt the Commission from adjusting for any other assistance received prior to January 1, C-8

40 Notes to Non-Consolidated Financial Statements 1. Significant Accounting Policies (continued) Allocation of Municipal Costs to Water Utility Funds Costs incurred which benefit both the municipal unit and the Water Commission are allocated on the basis of relative benefits. Interest is recorded on the balances due between Water Commission funds and other funds during the year at an annual rate of 8% on the outstanding balance at the end of the month. Cash and cash equivalents Cash and cash equivalents include cash on hand and balances with banks and bank overdrafts. Bank borrowings are considered to be financing activities. Use of estimates In preparing the Village's financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the period. Actual results could differ from these estimates. The most significant accounting estimates in these financial statements include allowance for doubtful accounts and estimated useful life of tangible capital assets 2. Depreciation Fund Balance, beginning of year $ 1,471,675 $ 1,333,606 Add (Deduct): Depreciation 300, ,510 Transfer to water capital for asset purchases (20,892) (120,441) Paid to operating fund (30,553) - Due from operating fund (248,615) - Balance, end of year $ 1,471,675 $ 1,471, Receivables Rates (net of allowance of $5,200) $ 166,615 $ 132,733 Other 65,506 - Goods and Service Tax 37,043 9,850 C-9 $ 269,164 $ 142,583

41 Notes to Non-Consolidated Financial Statements 4. Utility Plant in Service Land and buildings $ 152,453 $ 152,453 Machinery and equipment 441, ,542 Water system 10,455,475 10,281,643 Other 264, ,547 $11,314,437 $11,053, Deferred Assistance Assistance towards acquisition of fixed assets $ 2,017,549 $ 1,814,416 Accumulated amortization 308, ,880 Balance, end of year $ 1,709,107 $ 1,556, Accumulated Allowance for Depreciation Balance, beginning of year $ 4,550,404 $ 4,250,347 Add (Deduct): Depreciation 300, ,057 Disposal of assets (19,706) - Balance, end of year $ 4,830,758 $ 4,550,404 C-10

42 Notes to Non-Consolidated Financial Statements 7. Rate of Return on Rate Base For the year ended, the Water Utility has a rate of return on rate base of 2.30 % ( (0.08%)). 8. Commitment The Village contributes 6% of the gross salary of all full time employees to the Municipal Employees Pension Plan, a defined contribution pension plan. Such contributions are refundable if the employee terminates employment prior to vesting. During the year, the Water Commission has contributed $8,904, (2016-$10,584). C-11

43 Statement of Capital Projects Funding Year Ended Total Federal Gas Capital Capital Tax Cost Fund Grants Water system Storage Tank $ 7,473 $ 7,473 $ - Equipment 110,572 52,176 58,396 Meters 7,463 7,463 - Wells 15,955 8,656 7,299 PRV Station 142,941 5, ,437 $ 284,404 $ 81,272 $ 203,132 C-12