FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008 & 2007
INDEX TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008 & 2007 AUDITORS' REPORT 1 FINANCIAL STATEMENTS Statement of Financial Position 2 Statement of Financial Activities 3 Statement of Change in Fund Balances 4 Statement of Changes in Financial Position 5 NOTES TO FINANCIAL STATEMENTS 6-13 SCHEDULES Schedule of Operations - Program Funding 14-21 Schedule of Contributions of Funding Municipalities 22 Due to Province of Ontario - MCSS 23 Schedule of Capital Fund Operations 24 Analysis of Reserves 25 Analysis of Reserve Funds 26 Schedule of Segment Disclosure 27
Ross, Pope & Company LLP Chartered Accountants Telephone: (705) 264-9484 101 Cedar Street South Fax: (705) 264-0788 Timmins, Ontario E-Mail: inform@rosspope.com P4N 2G7 Website: www.rosspope.com AUDITORS' REPORT To the Chairman and Board of the Cochrane District Social Services Administration Board We have audited the statement of financial position of the Cochrane District Social Services Administration Board as at December 31, 2008 and the statements of financial activities, change in fund balances and changes in financial position for the year then ended. These financial statements are the responsibility of the Board's management. 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 plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these financial statements present fairly, in all material respects, the financial position of the Cochrane District Social Services Administration Board as at December 31, 2008 and the results of its financial activities and the changes in its financial position for the year then ended in accordance with Canadian generally accepted accounting principles. Timmins, Ontario April 1, 2009 Ross, Pope & Company LLP Chartered Accountants Licensed Public Accountants 1
STATEMENT OF FINANCIAL ACTIVITIES YEARS ENDED DECEMBER 31 2008 2007 REVENUE Province of Ontario $ 25,640,544 $ 23,473,290 Municipal and unincorporated territories contributions 24,148,735 24,354,016 Government of Canada 4,231,749 4,227,157 Rent 5,964,449 5,857,307 59,985,477 57,911,770 EXPENSES - PROGRAMS Child care 7,500,568 6,925,907 Employment placement 1,518,519 1,519,019 Ontario Disability Support Program 7,285,153 8,509,124 Ontario Works 11,152,864 11,821,099 Social housing 16,083,928 15,712,211 Social housing - Moosonee 2,058,705 2,014,803 Land ambulance - operating 9,267,596 8,685,078 Land ambulance - capital 821,533 - Other 1,727,491 418,118 57,416,357 55,605,359 EXPENSES - ADMINISTRATION OF PROGRAMS Bank charges and interest 4,917 10,094 Equipment and leasehold improvements 86,175 70,568 Miscellaneous 268,726 210,696 Office supplies 129,524 57,109 Professional fees and purchased services 64,579 139,999 Rent, building lease and utilities 43,984 47,056 Salaries, wages and benefits 1,044,769 1,018,379 Travel 8,701 10,122 Interest earned (434,839) (465,984) 1,216,536 1,098,039 58,632,893 56,703,398 NET REVENUES 1,352,584 1,208,372 Due to the Province of Ontario - MCSS (Note 3 and Schedule 3) (166,130) (181,828) Due from municipalities (600,000) - Due to unincorporated territories (Schedule 2) (130,744) (34,015) CHANGE IN CDSSAB POSITION $ 455,710 $ 992,529 See accompanying notes. 3
STATEMENT OF CHANGE IN FUND BALANCES YEARS ENDED DECEMBER 31 2008 2007 CHANGE IN CDSSAB POSITION $ 455,710 $ 992,529 Debt principal repayments (136,615) (128,527) Change in retirement and other employee future benefits (Note 7) (27,887) (52,716) Decrease in amounts to be recovered (164,502) (181,243) CHANGE IN FUND BALANCES $ 291,208 $ 811,286 See accompanying notes. 4
STATEMENT OF CHANGES IN FINANCIAL POSITION YEARS ENDED DECEMBER 31 2008 2007 OPERATING ACTIVITIES Cash received - Province of Ontario $ 25,924,211 $ 24,922,895 Cash received - Municipal and unincorporated territories contributions 24,773,621 24,422,534 Cash received - Government of Canada 4,231,749 4,227,157 Cash received - other 5,984,635 5,966,199 Cash paid out - program expenses (56,032,762) (54,833,413) Cash paid out - administration of programs (1,616,249) (1,553,299) CASH PROVIDED BY OPERATING ACTIVITIES 3,265,205 3,152,073 FINANCING ACTIVITIES Interest earned 434,839 465,984 Repayment of long-term debt (136,615) (128,530) CASH PROVIDED BY FINANCING ACTIVITIES 298,224 337,454 CHANGE IN CASH 3,563,429 3,489,527 CASH, beginning of year 10,781,252 7,291,725 CASH, end of year $ 14,344,681 $ 10,781,252 CASH CONSISTS OF: Cash $ 13,417,546 $ 9,713,745 Temporary investments 927,135 1,067,507 $ 14,344,681 $ 10,781,252 CASH FLOW SUPPLEMENTARY INFORMATION: Interest paid $ 1,024,198 $ 1,072,900 See accompanying notes. 5
NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008 & 2007 1. NATURE OF OPERATIONS Cochrane District Social Services Administration Board (CDSSAB) is an organization which administers various programs of the Ministry of Community and Social Services (MCSS), Ministry of Health and Long-Term Care and Ministry of Municipal Affairs and Housing. The Board also provides social housing in the Cochrane District. The Board is funded primarily by the Province of Ontario, the Government of Canada and twelve incorporated municipalities from the District of Cochrane. 2. SIGNIFICANT ACCOUNTING POLICIES The financial statements of the CDSSAB are the representation of management prepared in accordance Canadian generally accepted accounting principles for local governments as recommended by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants. The more significant of these accounting policies are summarized below. (a) FUTURE CHANGES IN SIGNIFICANT ACCOUNTING POLICIES The following accounting standards have been issued by the Canadian Institute of Chartered Accountants (CICA) but are not yet effective For years beginning on or after January 1, 2009, Section 3150 of the Canadian Institute of Chartered Accountants (CICA) Public Sector Accounting Handbook requires publicly accountable entities to capitalize and amortize assets. Because in the past the board has expensed capital assets, the board will be establishing capitalization policies, assessing the remaining useful life of assets and possible residual values when service potential ends and appropriate amortization rates to be used over 2009 and later. (b) ACCRUAL ACCOUNTING The financial statements of the Cochrane District Social Services Administration Board have been prepared using 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. (c) REVENUE RECOGNITION The programs are funded primarily by the Province of Ontario in accordance with budget arrangements established by the Ministry of Community and Social Services, Ministry of Health and Long-Term Care and Ministry of Municipal Affairs and Housing. Government transfers grants are recorded as revenue in the period to which they relate. Government transfers approved but not received at the end of an accounting period are accrued. Where a portion of a government transfer relates to a future period, it is deferred and recognized in that subsequent period. Any excess of program funding over recoverable expenses is due to the Province of Ontario. The programs are also funded by member municipalities from the District of Cochrane. Contributions for the year are based on the weighted assessments for each municipality. Any excess or deficiency of the municipalities' contributions in the year over their respective share of program's expenses is apportioned among the municipalities in the same proportion as the original contributions. Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. (d) CAPITAL ASSETS The historical cost and accumulated amortization of capital assets are not recorded. Capital assets are reported as an expenditure on the "Statement of Financial Activities" in the year of acquisition. For those capital assets financed or to be financed by the issue of long-term debt, the principal and interest on the long-term debt are reported on the "Statement of Changes in Fund Balances" as they are paid. 6
NOTES TO FINANCIAL STATEMENTS (CONT'D) YEARS ENDED DECEMBER 31, 2008 & 2007 (e) OPERATING FUND Adjustments to prior year funding are recorded as increases or decreases in the operating fund in the period it is incurred. (f) RESERVES AND RESERVE FUNDS Reserves and reserve funds represent amounts appropriated for general and specific purposes and are charged or credited to respective fund in the period appropriated or drawn down. The amounts in reserves are approved by the Board and are within the limits defined in the District Social Services Administration Boards Act. (g) MEASUREMENT UNCERTAINTY The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from these estimates. (h) RETIREMENT AND OTHER EMPLOYEE FUTURE BENEFITS The Board provides future benefits to specified employee groups. These benefits include sick leave, vacation pay and health care benefits. The costs of other employee future benefit plans are actuarially determined using the Board's best estimate of accumulated sick days at retirement and health care costs trends, long-term inflation rates and discount rates. The Board accrues its obligations under employment benefit plans as the employees render the services necessary to earn employee future benefits. The cost of retirement benefits earned by employees is actuarially determined using the projected benefit method pro-rated on service and management's best estimate of salary escalation, retirement ages and expected health care costs. Actuarial valuations, where necessary for accounting purposes, are performed triennially. The discount rate used to determine the accrued benefit obligation was the expected cost of long term debt. Unamortized actuarial gains or losses are amortized on a straight-line basis over the expected average remaining service life of the employee group. Where applicable, the Board has set aside reserves and reserve funds intended to fund these obligations, either in full or in part. These reserves and reserve funds do not meet the definition of a plan asset under CICA PS 3250 Retirement Benefits. Therefore, for the purposes of these financial statements, the plans are considered unfunded. (i) FUND ACCOUNTING Funds within the financial statements consist of current, capital and reserve funds. Transfers between funds are recorded as adjustments to the appropriate fund balance. (j) GOVERNMENT TRANSFERS Government transfers are recognized in the financial statements in the period in which the events giving rise to the transfer occur, eligibility criteria are met, and reasonable estimates of the amount can be made. (k) USE OF ESTIMATES The preparation of financial statements in conformity with Canadian 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 revenues and expenditures during the reporting periods. These have been made using careful judgment and in light of information available. The financial statements have in management's opinion, been properly prepared within reasonable limits of materiality. Actual results could differ from these estimates. 7
NOTES TO FINANCIAL STATEMENTS (CONT'D) YEARS ENDED DECEMBER 31, 2008 & 2007 3. DUE TO PROVINCE OF ONTARIO - MCSS 2008 2007 Due to Province - MCSS for 2008 (Schedule 3) $ 166,130 $ - Due to Province - MCSS for 2007 207,882 181,828 Due to Province - MCSS for 2004 40,958 87,194 Due to Province - MCSS for 2005 37,708 96,786 Due to Province - MCSS for 2006 76,692 197,410 Due to Province - 2007 MCSS Ontario Works (Form 5) - 26,202 Due from Province - 2008 MCSS Ontario Works (Form 5) (58,595) - $ 470,775 $ 589,420 4. LONG-TERM DEBT 2008 2007 Due to the City of Timmins, repayable in blended monthly payments of $6,764, interest calculated at 6.5%, matures June 1, 2009. $ 39,826 $ 115,710 Due to the Town of Cochrane, repayable in blended monthly payments of $1,205, interest calculated at 6.5%, matures January 1, 2010. 15,097 28,147 Mortgage payable in monthly instalments of $4,128 including interest at the rate of 4.528%, maturing June 2016, secured by a mortgage on land and building. 314,946 349,503 Computer capital lease payable in monthly installments of $1,263 including interest calculated at 8%, matures March 2010. 17,959 31,083 $ 387,828 $ 524,443 Principal payments required for each of the next five years and thereafter are approximately as follows: 2009 $ 104,085 2010 42,707 2011 39,526 2012 41,337 2013 43,231 2014 and subsequent years 116,942 $ 387,828 8
NOTES TO FINANCIAL STATEMENTS (CONT'D) YEARS ENDED DECEMBER 31, 2008 & 2007 5. DEBENTURE DEBT The Ministry of Municipal Affairs and Housing (Ministry) transferred title to all the housing units to Cochrane District Local Housing Corporation. The transfer was made such that the Ministry retained the debt that was outstanding on the properties. The Ministry continues to make the mortgage payments. In return, the subsidies received from the Ministry and Federal government are reduced by the amount of these principal and interest payments. The principal and interest payments for 2008 were $1,604,949. The outstanding balance of these debentures at December 31, 2008 is $13,363,394 (2007 - $14,029,709). 6. DEFERRED REVENUE 2008 2007 Tenants' prepaid rent $ 42,506 $ 30,352 Rent Bank 92,936 70,478 HARS 18,038 18,038 National Child Care Benefit - 24,313 ODSP Participation & Employability 112,784 48,240 OW Employment 443,532 443,532 Affordable Housing Program 841,465 86,737 Capital grant - Delivering Opportunities for Ontario Renters program 1,443,255 1,475,000 Capital grant - Social Housing Capital Repairs 824,475 - Best Start 563,677 563,677 7. RETIREMENT AND OTHER EMPLOYEE FUTURE BENEFITS $ 4,382,668 $ 2,760,367 2008 2007 Total Employee Future Benefits Total Employee Future Benefits Accrued employee future benefit obligations, beginning of year $ 1,329,558 $ 1,382,274 Add: current year benefit cost 100,241 93,595 Add: interest on accrued benefit obligation 64,177 66,140 Change in estimate - Less: benefits paid (192,305) (212,451) Total expenses (27,887) (52,716) Accrued employee future benefit obligations, ending of year $ 1,301,671 $ 1,329,558 The accrued benefit obligations for employee future benefit plans as at December 31, 2008 are based on actuarial valuations as at December 31, 2006. These actuarial valuations were based on assumptions about future events. The employee future benefits expenses have been included in salaries, wages and benefits expenses on the "Statement of Financial Activities". The next required actuarial valuation will be performed as at January 1, 2010. 9
NOTES TO FINANCIAL STATEMENTS (CONT'D) YEARS ENDED DECEMBER 31, 2008 & 2007 7. RETIREMENT AND OTHER EMPLOYEE FUTURE BENEFITS (CONT'D) The economic assumptions used in these valuations are the Board's best estimates of expected rates of the following: 2008 % Inflation 2.0 Wage and salary escalation (includes inflation) 3.0 Dental cost escalation 4.0 Discount on accrued benefit obligations 5.0 Expected future sales tax 8.0 Expected average remaining life of the employee group 15 years Expected future retirement rates Expected future termination rates Expected future mortality rates 25% in the earliest of no reduction in OMERS pension; 10% in subsequent years Ontario Light Termination Rates Group annuity mortality 1994 Static Health Care Current Blended Rates derived from CDSSAB experience plus future escalations plus a 25% age adjustment Health care cost escalation Expected future change in benefits escalates at 8% per year reducing to 4% per year over 12 years; 4% per year thereafter future benefit caps remain constant; fee schedules will track expected future premium escalation rates Emergency Medical Travel Blended (Retiree plus Active) EMTI premiums of $1.98 per month single and $4.22 per month family plus future escalations were increased by 25% as an age adjustment Month of Retirement Coverage Government Sponsored Medical Programs Life and Dependent Life All eligible CDSSAB early retirees will receive early retirement benefits until age 65 Will continue in the future without change Ontario Light Termination Rates A Reserve fund of $520,532 (2007 - $502,369) has been established to provide for housing employee entitlements. Also, reserves have been established to provide for sick leave and severance for land ambulance employees. The balance of these reserves is $294,577 (2007 - $266,059) and $559,409 (2007 - $559,409), respectively. These reserve funds and reserves are reported on the Statement of Financial Position. 10
NOTES TO FINANCIAL STATEMENTS (CONT'D) YEARS ENDED DECEMBER 31, 2008 & 2007 7. RETIREMENT AND OTHER EMPLOYEE FUTURE BENEFITS (CONT'D) RETIREMENT BENEFITS (a) RETIREMENT GRATUITIES The Board provides retirement gratuities to certain groups of employees. The amount of the gratuities paid to eligible employees at retirement is based on their salary and accumulated sick days at retirement. (b) RETIREMENT LIFE INSURANCE AND HEALTH CARE BENEFITS The Board continues to provide life insurance and health care benefits to certain employee groups for one year after retirement. The benefit costs and liabilities related to this plan are included in the Board's financial statements. OTHER EMPLOYEE FUTURE BENEFITS (a) WORKPLACE SAFETY AND INSURANCE BOARD OBLIGATIONS The Board is a Schedule 1 employer under the Workplace Safety and Insurance Act and, as such, the Board insures all claims by its injured workers under the Act. The Board's insurance premiums for the year ended December 31, 2008 were $343,060 (2007 - $342,412) and are included in the Board's current year benefit costs. No liabilities for claims by its injured workers under the Act are included in the Board's financial statements. (b) LONG-TERM DISABILITY The Board provides life insurance, dental and health care benefits to employees on long-term disability leave. The Board is responsible for the payment of life insurance premiums and the costs of health care benefits under this plan for a two year period. The costs of salary compensation paid to employees on long-term disability leave are fully insured and not included in this plan. 8. RESERVES AND RESERVE FUNDS Reserves are comprised of the following: 2008 2007 For sick leave $ 294,577 $ 266,059 For working capital 1,939,246 1,031,751 For organization/computer development 595,000 595,000 For MOH - LA - severance 559,409 559,409 For MOH - LA - vehicle 276,798 276,798 TOTAL RESERVES (Schedule 5) $ 3,665,030 $ 2,729,017 Reserve funds are comprised of the following: 2008 2007 Housing Employee Entitlement $ 520,532 $ 502,369 Public Housing Capital 1,417,680 1,368,210 Federal Housing Capital 604,619 583,521 Moosonee Public Housing Capital 170,190 164,252 Non-Profit Housing Capital 327,500 316,070 TOTAL RESERVE FUNDS (Schedule 6) $ 3,040,521 $ 2,934,422 11
NOTES TO FINANCIAL STATEMENTS (CONT'D) YEARS ENDED DECEMBER 31, 2008 & 2007 9. AMOUNTS TO BE RECOVERED Amounts to be recovered represent assets not satisfying the definition of an asset under PSAB recommendations and liabilities established for accrual accounting purposes. In some cases, reserves and reserve funds have been established to fund these amounts. In other cases, the liabilities are to be funded from future years' budgetary allocations. The balance is comprised of the following items: 2008 2007 Retirement and other employee future benefits $ 1,301,671 $ 1,329,558 Long-term debt 387,828 524,443 Balance, end of year $ 1,689,499 $ 1,854,001 10. PENSION AGREEMENTS The Board makes contributions to the Ontario Municipal Employees Retirement System (OMERS), which is a multiemployer plan, on behalf of members of its staff. The plan is a defined benefit plan which specifies the amount of the retirement benefit to be received by the employees based on the length of service and rates of pay. The amount contributed to OMERS for 2008 was $629,885 (2007 - $613,102) for current service. As this a multiemployer pension plan, these contributions are CDSSAB's pension benefit expense. No pension liability for this type of plan is included in CDSSAB's financial statements. 11. FINANCIAL INSTRUMENTS The carrying value of cash, temporary investments, accounts receivable, accounts payable and accrued liabilities and due to Province of Ontario approximate their fair value due to the short-term maturities of these instruments. Unless otherwise noted, it is management's opinion that the CDSSAB is not exposed to significant interest, currency or credit risks arising from these financial instruments. The carrying amount of long-term debt approximates the fair value as the interest rates are consistent with current rates offered to the CDSSAB for debt with similar terms. 12. COMMITMENTS The Board has leased office space under operating leases for various periods up to the year 2012. The Board also paying rent on a month to month basis for lease office space. Future minimum lease payments are as follows: 2009 $ 147,287 2010 $ 79,113 2011 $ 70,772 2012 $ 70,772 13. ECONOMIC DEPENDENCE The majority of the Board's revenue is received from the provincial and federal governments and member municipalities. The continuation of this organization is dependent on this funding. 14. CONTINGENCIES The Board is involved in a number of claims and possible claims which are as a result of normal on going operations. In the eventuality that the Board is unsuccessful in defending some of these claims, amounts are available in existing reserves, reserve funds and the operating fund. Management is of the opinion that these amounts are sufficient to cover these claims. Any settlements or awards which may arise or any difference with the provision made will be reflected in the financial records in the year that the amount has been determined. 12
NOTES TO FINANCIAL STATEMENTS (CONT'D) YEARS ENDED DECEMBER 31, 2008 & 2007 15. SEGMENTED INFORMATION The District of Cochrane Social Services Administration Board supports the development of healthy and selfsufficient communities through the innovative and responsive delivery of Children's Services, Community Housing, Emergency Medical Services and Social Assistance. For reporting purposes the Board s financial activities are organized and reported by program. Certain programs that have been separately disclosed in the segmented information, along with the services they provide are as follows: (a) SOCIAL HOUSING Housing Services administers rent-geared-to-income assistance to eligible households in the Cochrane District. The department also manages a housing portfolio of 1289 units and 106 rent supplement units and administers the Social Housing Reform Act 2000 for the various Non-Profit and Co-operative Housing Providers' portfolio of 800 units. Providers operate affordable housing projects that offer rental units at Market Rents and units that are eligible for rent-geared-to-income subsidy. Housing assistance is provided to families, seniors, couples, single people and people with special needs in a variety of buildings; townhouses, apartments, single and semi-detached. Private landlords have also agreed to supply accommodation under the rent supplement program. (b) ONTARIO WORKS The Ontario Works Department provides employment and financial assistance to individuals who comply with the participation requirements intended to assist them in finding and maintaining gainful employment. Individuals receiving assistance through Ontario Works participate in a wide range of employment assistance activities, which help them prepare for, find, and keep a job. (c) CHILD CARE The Children s Services Division manages childcare funding within the District of Cochrane. This includes: fee subsidy, resource center funding, special needs resourcing, wage subsidy, National Child Reinvestment funding, and funding for special initiatives. (d) LAND AMBULANCE CDSSAB is responsible for the provision of Land Ambulance Services within the District of Cochrane based upon fundamental principles which include services that are seamless, accountable, responsive, integrated and accessible. (e) ONTARIO DISABILITY SUPPORT PROGRAM (ODSP) The Ontario Disability Support Program provides eligible people with disabilities with financial help and help finding a job. For each reported segment, revenue and expenses represent both the amounts that are directly attributable to the segment as well as amounts that can reasonably be allocated to the segment. Therefore, certain allocation methodologies are employed in the preparation of segmented financial information. The accounting policies used in these segments are consistent with those followed in the preparation of the financial statements as disclosed in Note 2. For additional information, see the Schedule of Segment Disclosure (Schedule 7). 13
SCHEDULE OF OPERATIONS- PROGRAM FUNDING SCHEDULE 1 YEAR ENDED DECEMBER 31 LAND EMPLOYMENT O.W CHILDCARE AMBULANCE LEAP SUPPORTS CHILDCARE CHILDCARE HOMELESSNESS OTHER SOCIAL 2008 Note 1 INCENTIVES Note 2 FORMAL SPECIAL NEEDS INITIATIVE ASSISTANCE SUB TOTAL EXPENSES (Note 3) $ 9,449,534 $ 1,000 $ 1,518,519 $ 235,942 $ 288,949 $ 30,400 $ 14,579 $ 11,538,923 EXPENSES ARE ALLOCATED AS FOLLOWS: % OF EXPENSES FUNDED BY MINISTRIES Note 1 80% 80% 80% 80% 100% 100% N/A MINISTRIES $ 4,652,869 $ 800 $ 1,214,815 $ 188,754 $ 231,159 $ 30,400 $ 14,579 $ 6,333,376 BALANCE TO BE ALLOCATED 4,796,665 200 303,704 47,188 57,790 - - 5,205,547 TERRITORIES - OTHER 402,440 - - - - - - 402,440 TERRITORIES - MCSS - 16 23,780 3,695 4,525 - - 32,016 MUNICIPALITIES (Sch. 2) 4,394,225 184 279,924 43,493 53,265 - - 4,771,091 TOTAL REVENUE $ 9,449,534 $ 1,000 $ 1,518,519 $ 235,942 $ 288,949 $ 30,400 $ 14,579 $ 11,538,923 Note 1: The Ministry of Health and Long-Term Care funded $4,652,869 of land ambulance expenses. The remaining expenses are funded by the Municipalities. Note 2: The Ministry of Community and Social Services (MCSS) funds the Employment Supports program based on pre-determined targets established by the Provincial government. The Ministry is responsible for funding of up to 80% of the expenditures if targets are achieved. The Municipalities must provide 100% funding for expenses that exceed the funding received from MCSS. Note 3 : Expenses include allocated administration costs and are before any required adjustments to conform to Canadian generally accepted accounting principles for local governments as recommended by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants. 14
SCHEDULE OF OPERATIONS - PROGRAM FUNDING (CONT'D) SCHEDULE 1 (CONT'D) YEAR ENDED DECEMBER 31 NP HOUSING SOCIAL ONE-TIME NON- NON-PROFIT O.W. NATIONAL SOCIAL HOUSING CAPITAL PROFIT HOUSING COST OF CHILD 2008 HOUSING MOOSONEE O.D.S.P. FUNDING HOUSING MOOSONEE ADMINISTRATION BENEFIT SUB TOTAL EXPENSES (Note 1) $ 11,315,334 $ 776,664 $ 7,285,153 $ 158,023 $ 4,799,291 $ 1,282,041 $ 2,491,627 $ 234,873 $ 28,343,006 EXPENSES ALLOCATED AS FOLLOWS: % OF EXPENSES FUNDED BY MINISTRIES 0% 100% 0% 100% 0% 100% 50% 0% N/A OTHER $ 5,499,864 $ 464,585 $ - $ - $ - $ - $ - $ - $ 5,964,449 FEDERAL GOVERNMENT 2,386,853 - - - 1,844,896 - - - 4,231,749 MINISTRIES - 312,079-158,023-1,282,041 1,245,814-2,997,957 7,886,717 776,664-158,023 1,844,896 1,282,041 1,245,814-13,194,155 BALANCE TO BE ALLOCATED 3,428,617-7,285,153-2,954,395-1,245,813 234,873 15,148,851 TERRITORIES - OTHER 287,661 - - - 247,874 - - - 535,535 TERRITORIES - MCSS - - 570,427 - - - 97,547 18,391 686,365 MUNICIPALITIES (Sch. 2) 3,140,956-6,714,726-2,706,521-1,148,266 216,482 13,926,951 TOTAL REVENUE $ 11,315,334 $ 776,664 $ 7,285,153 $ 158,023 $ 4,799,291 $ 1,282,041 $ 2,491,627 $ 234,873 $ 28,343,006 Note 1: Expenses include allocated administration costs and are before any required adjustments to conform to Canadian generally accepted accounting principles for local governments as recommended by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants. 15
SCHEDULE OF OPERATIONS - PROGRAM FUNDING (CONT'D) SCHEDULE 1 (CONT'D) YEAR ENDED DECEMBER 31 O.W. ASSISTANCE O.W. MOOSONEE MOOSONEE O.W ELIGIBILITY REG, NON RES, ASSISTANCE O.W. CHILDCARE CHILDCARE REVIEW CHILDCARE 2008 SOLE SUPP. I.W.S. ASSISTANCE HEALTH & SAFETY FORMAL OFFICER ADMINISTRATION SUB TOTAL EXPENSES (Note 1) $ 7,549,296 $ 178,001 $ 1,487,177 $ 282,778 $ 3,484 $ 53,631 $ 162,916 $ 9,717,283 EXPENSES ALLOCATED AS FOLLOWS: % OF EXPENSES FUNDED BY MINISTRIES 80% & 100% 100% 100% 100% 100% 100% 50% N/A MINISTRIES $ 6,058,615 $ 178,001 $ 1,487,177 $ 282,778 $ 3,484 $ 53,631 $ 81,458 $ 8,145,144 BALANCE TO BE ALLOCATED 1,490,681 - - - - - 81,458 1,572,139 TERRITORIES - OTHER - - - - - - - - TERRITORIES - MCSS 116,720 - - - - - 6,378 123,098 MUNICIPALITIES (Sch. 2) 1,373,961 - - - - - 75,080 1,449,041 TOTAL REVENUE $ 7,549,296 $ 178,001 $ 1,487,177 $ 282,778 $ 3,484 $ 53,631 $ 162,916 $ 9,717,283 Note 1: Expenses include allocated administration costs and are before any required adjustments to conform to Canadian generally accepted accounting principles for local governments as recommended by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants. 16
SCHEDULE OF OPERATIONS - PROGRAM FUNDING (CONT'D) SCHEDULE 1 (CONT'D) YEAR ENDED DECEMBER 31 MOOSONEE MOOSONEE ENHANCEMENT ONE-TIME CHILDCARE CHILDCARE CVP O.W. COST OF FAMILY RENT O.W. ADMIN NON 2008 FEE SUBSIDY HEALTH & SAFETY WORKLOAD ADMINISTRATION SUPPORT BANK FUNDING SHARABLE SUB TOTAL EXPENSES (Note 1) $ 289,915 $ - $ 73,588 $ 471,094 $ 25,000 $ 836 $ 17,940 $ 4,373 $ 882,746 EXPENSES ALLOCATED AS FOLLOWS: % OF EXPENSES FUNDED BY MINISTRIES 100% 100% 100% 100% 100% 100% 100% 0% N/A MINISTRIES $ 289,915 $ - $ 73,588 $ 471,094 $ 25,000 $ 836 $ 17,940 $ - $ 878,373 BALANCE TO BE ALLOCATED - - - - - - - 4,373 4,373 TERRITORIES - OTHER - - - - - - - - - TERRITORIES - MCSS - - - - - - - 342 342 MUNICIPALITIES (Sch. 2) - - - - - - - 4,031 4,031 TOTAL REVENUE $ 289,915 $ - $ 73,588 $ 471,094 $ 25,000 $ 836 $ 17,940 $ 4,373 $ 882,746 Note 1: Expenses include allocated administration costs and are before any required adjustments to conform to Canadian generally accepted accounting principles for local governments as recommended by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants. 17
SCHEDULE OF OPERATIONS - PROGRAM FUNDING (CONT'D) SCHEDULE 1 (CONT'D) YEAR ENDED DECEMBER 31 DOOR FUNDING ELCC ONE-TIME TRANSFER ELCC ELCC MOOSONEE SOCIAL TO ODSP SPECIAL NEEDS WAGE SUBSIDY NON-PROFIT BEST START BEST START 2008 HOUSING RESERVES PARTICIPATION RESOURCING NON-PROFIT WAGE SUBSIDY OPERATING PLANNING SUB TOTAL EXPENSES (Note 1) $ 31,745 $ - $ 27,500 $ 60,000 $ 49,236 $ 7,638 $ 2,678,391 $ 27,200 $ 2,881,710 EXPENSES ALLOCATED AS FOLLOWS: % OF EXPENSES FUNDED BY MINISTRIES 100% 100% 100% 80% 80% 100% 100% 100% N/A MINISTRIES $ 31,745 $ - $ 27,500 $ 48,000 $ 39,389 $ 7,638 $ 2,678,391 $ 27,200 $ 2,859,863 BALANCE TO BE ALLOCATED - - - 12,000 9,847 - - - 21,847 TERRITORIES - OTHER - - - - - - - - - TERRITORIES - MCSS - - - 940 771 - - - 1,711 MUNICIPALITIES (Sch. 2) - - - 11,060 9,076 - - - 20,136 TOTAL REVENUE $ 31,745 $ - $ 27,500 $ 60,000 $ 49,236 $ 7,638 $ 2,678,391 $ 27,200 $ 2,881,710 Note 1: Expenses include allocated administration costs and are before any required adjustments to conform to Canadian generally accepted accounting principles for local governments as recommended by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants. 18
SCHEDULE OF OPERATIONS - PROGRAM FUNDING (CONT'D) SCHEDULE 1 (CONT'D) YEAR ENDED DECEMBER 31 BEST START BEST START CHILDCARE CHILDCARE CHILDCARE CHILDCARE WAGE SUBSIDY WAGE SUBSIDY O.W. CHILD FEE RESOURCE DELIVERY WAGE SUBSIDY NOSDA & 2008 NON-PROFIT COMMERCIAL INFORMAL SUBSIDY CENTRES NON-PROFIT FOR PROFIT NOSDA AGM SUB TOTAL EXPENSES (Note 1) $ 292,025 $ 99,600 $ 39,170 $ 1,442,207 $ 544,839 $ 420,463 $ 55,197 $ - $ 2,893,501 EXPENSES ALLOCATED AS FOLLOWS: % OF EXPENSES FUNDED BY MINISTRIES 100% 100% 80% 80% 80% 80% 80% 0% N/A MINISTRIES $ 292,025 $ 99,600 $ 31,336 $ 1,153,766 $ 435,871 $ 336,370 $ 44,158 $ - $ 2,393,126 BALANCE TO BE ALLOCATED - - 7,834 288,441 108,968 84,093 11,039-500,375 TERRITORIES - OTHER - - - - - - - - - TERRITORIES - MCSS - - 613 22,585 8,532 6,584 864-39,178 MUNICIPALITIES (Sch. 2) - - 7,221 265,856 100,436 77,509 10,175-461,197 TOTAL REVENUE $ 292,025 $ 99,600 $ 39,170 $ 1,442,207 $ 544,839 $ 420,463 $ 55,197 $ - $ 2,893,501 Note 1: Expenses include allocated administration costs and are before any required adjustments to conform to Canadian generally accepted accounting principles for local governments as recommended by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants. 19
SCHEDULE OF OPERATIONS - PROGRAM FUNDING (CONT'D) SCHEDULE 1 (CONT'D) YEAR ENDED DECEMBER 31 MOOSONEE MOOSONEE CHILDCARE MOOSONEE MOOSONEE AFFORDABLE ELCC CHILDCARE DELIVERY CHILDCARE CHILDCARE BEST START HOUSING PRESCHOOL ELCC 2008 SPECIAL NEEDSNON-PROFIT ADMINISTRATION INFORMAL SUBSIDY PROGRAM FEE SUBSIDY ADMIN SUB TOTAL EXPENSES (Note 1) $ 60,000 $ 34,629 $ 55,468 $ 2,188 $ 175,000 $ 1,491,278 $ 29,373 $ 43,200 $ 1,891,136 EXPENSES ALLOCATED AS FOLLOWS: % OF EXPENSES FUNDED BY MINISTRIES 100% 100% 100% 100% 100% 100% 80% 50% N/A MINISTRIES $ 60,000 $ 34,629 $ 55,468 $ 2,188 $ 175,000 $ 1,491,278 $ 23,498 $ 21,600 $ 1,863,661 BALANCE TO BE ALLOCATED - - - - - - 5,875 21,600 27,475 TERRITORIES - OTHER - - - - - - - - - TERRITORIES - MCSS - - - - - - 460 1,691 2,151 MUNICIPALITIES (Sch. 2) - - - - - - 5,415 19,909 25,324 TOTAL REVENUE $ 60,000 $ 34,629 $ 55,468 $ 2,188 $ 175,000 $ 1,491,278 $ 29,373 $ 43,200 $ 1,891,136 Note 1: Expenses include allocated administration costs and are before any required adjustments to conform to Canadian generally accepted accounting principles for local governments as recommended by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants. 20
SCHEDULE OF OPERATIONS - PROGRAM FUNDING (CONT'D) SCHEDULE 1 (CONT'D) YEAR ENDED DECEMBER 31 MOOSONEE MOOSONEE MOOSONEE ENERGY CHILDCARE CHILDCARE CHILDCARE 2008 2008 BANK BOARD RES. CENTRES WAGE SUBSIDY PROV. SUBSIDY SUB TOTAL TOTAL EXPENSES (Note 1) $ 2,914 $ 29,892 $ - $ - $ - $ 32,806 $ 58,181,111 EXPENSES ALLOCATED AS FOLLOWS: % OF EXPENSES FUNDED BY MINISTRIES 100% 0% 100% 100% 100% N/A N/A OTHER $ - $ - $ - $ - $ - $ - $ 5,964,449 GOVERNMENT OF CANADA - - - - - - 4,231,749 MINISTRIES 2,914 - - - - 2,914 25,474,414 2,914 - - - - 2,914 35,670,612 BALANCE TO BE ALLOCATED - 29,892 - - - 29,892 22,510,499 TERRITORIES - OTHER - - - - - - 937,975 TERRITORIES - MCSS - 2,341 - - - 2,341 887,202 MUNICIPALITIES (Sch. 2) - 27,551 - - - 27,551 20,685,322 TOTAL REVENUE $ 2,914 $ 29,892 $ - $ - $ - $ 32,806 $ 58,181,111 Note 1: Expenses include allocated administration costs and are before any required adjustments to conform to Canadian generally accepted accounting principles for local governments as recommended by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants. 21
SCHEDULE OF CONTRIBUTIONS OF FUNDING MUNICIPALITIES SCHEDULE 2 YEAR ENDED DECEMBER 31 -----------------------------------------------------------------------2008---------------------------------------------------------------- Weighted Original Share of Deferred Current Transfer Assessment Contribution Expenses Revenue Position to Due to (%) Other Due to Working Municipality adjustments Municipality Capital Reserve Cochrane 5.73 $ 1,270,255 $ 1,185,269 $ 1,393 $ 86,379 $ (51,999) $ 34,380 Fauquier- Strickland 1.09 241,637 225,470 265 16,432 (9,893) 6,539 Hearst 7.19 1,593,915 1,487,275 1,748 108,388 (65,249) 43,139 Iroquois Falls 7.39 1,638,252 1,528,645 1,797 111,404 (67,064) 44,340 Kapuskasing 9.84 2,181,380 2,035,436 2,392 148,336 (89,298) 59,038 Black River-Matheson 4.20 931,077 868,784 1,021 63,314 (38,115) 25,199 Mattice - Val Coté 2.04 452,237 421,981 496 30,752 (18,513) 12,239 Moonbeam 1.66 367,997 343,376 404 25,025 (15,064) 9,961 Opasatika 0.70 155,180 144,797 170 10,553 (6,352) 4,201 Smooth Rock Falls 2.14 474,406 442,666 520 32,260 (19,420) 12,840 Timmins 57.05 12,647,130 11,800,976 13,871 860,025 (517,726) 342,299 Val Rita - Harty 0.97 215,034 200,647 236 14,623 (8,798) 5,825 100.00 22,168,500 20,685,322 24,313 1,507,491 (907,491) 600,000 Unincorporated territories - other 8.39 1,003,489 937,975-65,514-65,514 Unincorporated territories - MCSS 7.83 952,432 887,202-65,230-65,230 Unincorporated territories - Blended % 8.11 1,955,921 1,825,177-130,744-130,744 Prior year deferred revenue and adjustments - 24,313 - (24,313) - - - Current year deferred 108.11 $ 24,148,734 $ 22,510,499 $ - $ 1,638,235 $ (907,491) $ 730,744 NOTES: 1) The above figures are based on weighted assessment and 2008 figures. 2) The levy for the unincorporated areas was deducted from the total municipal costs. The remainder was apportioned based on the weighted assessment. 22
SCHEDULE 3 COCHRANE DISTRICT SOCIAL SERVICES ADMINISTRATION BOARD DUE TO PROVINCE OF ONTARIO - MCSS YEARS ENDED DECEMBER 31 2008 2007 Approved funding $ 26,853,473 $ 24,599,217 Deferred revenue (1,212,929) (1,125,926) 25,640,544 23,473,291 Share of expenses 25,474,414 23,291,463 Due to Province - MCSS $ 166,130 $ 181,828 23
SCHEDULE 4 COCHRANE DISTRICT SOCIAL SERVICES ADMINISTRATION BOARD SCHEDULE OF CAPITAL FUND OPERATIONS YEARS ENDED DECEMBER 31 2008 2007 EXPENDITURE Office building $ 821,533 $ - FINANCING AND TRANSFERS Net transfers from operating fund 70,629 65,772 CHANGE IN CAPITAL FUND BALANCE (750,904) 65,772 CAPITAL FUND BALANCE, beginning of year (535,336) (601,108) CAPITAL FUND, end of year $ (1,286,240) $ (535,336) 24
ANALYSIS OF RESERVES SCHEDULE 5 YEAR ENDED DECEMBER 31, 2008 ORGANIZATION/ WORKING COMPUTER MOH/LA MOH/LA SICK LEAVE CAPITAL DEVELOPMENT SEVERANCE VEHICLE TOTAL RESERVES BALANCE, beginning of year $ 266,059 $ 1,031,751 $ 595,000 $ 559,409 $ 276,798 $ 2,729,017 APPROPRIATIONS FROM CURRENT OPERATIONS 28,518 907,495 - - - 936,013 BALANCE, end of year $ 294,577 $ 1,939,246 $ 595,000 $ 559,409 $ 276,798 $ 3,665,030 25
SCHEDULE 6 COCHRANE DISTRICT SOCIAL SERVICES ADMINISTRATION BOARD ANALYSIS OF RESERVE FUNDS YEAR ENDED DECEMBER 31, 2008 RESERVE FUNDS MOOSONEE NON-PROFIT PUBLIC HOUSING FEDERAL PUBLIC HOUSING HOUSING EMPLOYEE HOUSING HOUSING CAPITAL CAPITAL ENTITLEMENT CAPITAL CAPITAL TOTAL BALANCE, beginning of year $ 316,070 $ 1,368,210 $ 502,369 $ 583,521 $ 164,252 $ 2,934,422 INCOME EARNED IN YEAR 11,428 49,470 18,164 21,098 5,939 106,099 BALANCE, end of year $ 327,498 $ 1,417,680 $ 520,533 $ 604,619 $ 170,191 $ 3,040,521 26
SCHEDULE 7 COCHRANE DISTRICT SOCIAL SERVICES ADMINISTRATION BOARD SCHEDULE OF SEGMENT DISCLOSURE YEAR ENDED DECEMBER 31, 2008 ONTARIO DISABILITY LAND SOCIAL ONTARIO CHILD SUPPORT AMBULANCE HOUSING WORKS CARE PROGRAM TOTAL REVENUES Ministries $ 4,652,869 $ 3,275,166 $ 10,902,704 $ 6,643,675 $ - $ 25,474,414 Government of Canada - 4,231,749 - - - 4,231,749 Municipalities 4,394,225 5,847,477 2,833,917 894,977 6,714,726 20,685,322 Unincorporated territories 402,440 535,535 240,746 76,029 570,427 1,825,177 Rent - 5,964,449 - - - 5,964,449 Revenues per Schedule 1 9,449,534 19,854,376 13,977,367 7,614,681 7,285,153 58,181,111 Due to MCSS - - 166,130 - - 166,130 Due to Municipalities 117,408 167,308 192,599 34,375 88,310 600,000 Due to unincorporated territories 27,016 38,498 41,107 5,271 18,853 130,745 Municipal surplus to reserves - - 907,491 - - 907,491 Revenues per statement of financial activities 9,593,958 20,060,182 15,284,694 7,654,327 7,392,316 59,985,477 EXPENSES Salaries 5,459,016 2,677,223 3,820,130 429,118-12,385,487 Materials and services 1,567,280 6,182,220 1,512,839 776,764 7,285,153 17,324,256 Rent and financial expenses 174,563 1,719,666 208,281 - - 2,102,510 External transfers - 8,449,263 9,262,120 6,408,799-24,120,182 Contracted services 2,248,676 - - - - 2,248,676 Expenses per schedule 1 9,449,535 19,028,372 14,803,370 7,614,681 7,285,153 58,181,111 Municipal transfer to reserves - - 907,495 - - 907,495 Post-employment benefits (1,952) (3,068) (20,915) (1,952) - (27,887) Long-term debt repayments - (34,557) (26,175) (75,883) - (136,615) Capital expenditures - 410,767 410,766 - - 821,533 Income earned on reserve funds - (106,099) - - - (106,099) Transfer to reserves and capital fund (96,774) (1,188) (908,683) - - (1,006,645) Expenses per statement of financial activities 9,350,809 19,294,227 15,165,858 7,536,846 7,285,153 58,632,893 NET REVENUES $ 243,149 $ 765,955 $ 118,836 $ 117,481 $ 107,163 $ 1,352,584 27