HomeMy Public PortalAbout2010 Financial StatementsCORPORATION OF THE MUNICIPALITY
OF TWEED
CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2010
Welch LLP
nn Tczdepenctent Member of BKR International
CORPORATION OF THE MUNICIPALITY OF TWEED
FINANCIAL STATEMENTS
DECEMBER 31, 2010
Independent Auditor's Report 2
Consolidated Statement of Financial Position 3
Consolidated Statement of Financial Operations and Accumulated Surplus 4
Consolidated Statement of Change in Net Financial Assets 5
Consolidated Statement of Cash Flows 6
Notes to Financial Statements 7-13
Schedule 1 - Consolidated Statement of Tangible Capital Assets 14
Schedule 2 - Consolidated Schedule of Continuity of Reserves and Reserve Funds 15
Schedule 3 - Consolidated Segmented Statement of Operations 16-18
Schedule 4 - Consolidated Schedule of Reconciliation of Financial Plan to the Budget 19
Trust Funds:
Independent Auditor's Report 21
Balance Sheet 22
Statement of Continuity 23
Notes to Financial Statements 24
Welch LIP
An Indepeti&Et NicmLar of IBKR International
elch LIT
INDEPENDENT AUDITOR'S REPORT
To the Members of Council,
of the Corporation of the
Municipality of Tweed
We have audited the accompanying consolidated financial statements of the CORPORATION OF THE
MUNICIPALITY OF TWEED which comprise the balance sheet at December 31, 2010 and the
consolidated statements of operations and accumulated surplus, changes in net financial assets and cash
flows for the year then ended, and a summary of significant accounting policies and other explanatory
information.
Management's Responsibility for the Consolidated 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 consolidated 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
Corporation'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 Corporation'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, the financial statements present fairly, in all material respects, the financial position of
the CORPORATION OF THE MUNICIPALITY OF TWEED as at December 31, 2010 and the results
of its operations and its cash flows for the year then ended in accordance with Canadian generally
accepted accounting principles.
G(Je - L LP
Belleville, Ontario CHARTERED ACCOUNTANTS
October 25, 2011 LICENSED PUBLIC ACCOUNTANTS
2
Welch LLP - Chartered Accountants
525 Dundas Street East, Belleville, Ontario KSN 1G4
T: 613 966 2844 F: 613 966 2206 W: www.welchllp.com
An Independent Member of BIER International
Belleville I Campbeliford I Cornwall I Gatineau I Napanee I Ottawa Pembroke Picton I Renfrew I Trenton
CORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
DECEMBER 31, 2010
FINANCIAL ASSETS
Cash - note 3
Taxes receivable
Accounts receivable
Long-term receivable - note 4
LIABILITIES
Accounts payable and accrued liabilities
Accrued liability - Waste Disposal closure - note 5
Deferred revenue
Long-term debt - note 6
NET FINANCIAL ASSETS
NON -FINANCIAL ASSETS
Tangible capital assets - note 1, schedule 1
ACCUMULATED SURPLUS - note 8
Approved by Council:
Reeve
t -} CAO/Clerk
(See accompanying notes)
2010
$ 645,167 $
955,911
1,955,373
52,086
3,608,537
389,046
300,000
69,996
37,187
796,229
2009
2,997,850
1,005,352
811,811
46,835
4,861,848
139,242
300,000
5,609
36,798
481,649
2,812,308 4,380,199
26,357,623 20,919,105
$ 29,169,931 $ 25,299,304
Welch LLP
An Independent Member of BKR Tnternatienal.
CORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED STATEMENT OF FINANCIAL OPERATIONS AND
ACCUMULATED SURPLUS
YEAR ENDED DECEMBER 31, 2010
REVENUE
Municipal taxation
Taxation from other governments
Grants
User charges
Investment income
Penalty and interest on taxes
Other
EXPENDITURE
General government
Protection to persons and property
Transportation services
Environmental services
Recreation and cultural services
Planning and development
NET EXPENDITURES
OTHER INCOME AND EXPENSES RELATED
Municipal taxation for capital purposes
Government transfers:
Canada
Ontario
Donations
ANNUAL SURPLUS
ACCUMULATED SURPLUS, beginning of year
ACCUMULATED SURPLUS, end of year
2010 2010
Budget
(unaudited)
$ 2,552,803
24,300
2,241,075
882,865
42,000
116,000
66,685
5.925,728
800,996
1,160,984
3,271,477
825,654
540,892
1,769
6,601,772
Actual
$ 2,569,313
24,901
2,280,303
901,302
47,994
127,332
81,898
6,033,043
2009
Actual
$ 2,121,872
25,696
2,417,590
870,471
22,082
121,431
425,241
6,004, 383
769,661 811,110
1,152,710 1,164,662
3,128,534 2,644,012
985,184 760,427
623,337 437,938
1,586 660
6,661,012 5,818,809
(676,044) (627,969) 185,574
TO CAPITAL
812,046 812,046
2,467,088 1,777,608
2,467,088 1,777,608
200,000 131,334
5,946,222 4,498,596
5,270,178
25,299,304
$ 30,569,482
(See accompanying notes)
3,870,627
25,299,304
$29,169,931
1,148,901
271,190
271,190
1,691,281
1,876,855
23,422,449
$25,299,304
Welch UP
An Independent Member of BKR internadonal
CORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED STATEMENT OF CHANGE IN NET FINANCIAL ASSETS
DECEMBER 31, 2010
ANNUAL SURPLUS
Amortization of tangible capital assets
Acquisition of tangible capital assets
2010 2010 2009
Budget Actual Actual
(unaudited)
$ 5,270,178 $ 3,870,627 $ 1,876,855
1,867,851 1,867,851 1,216,311
(9,029,993) (7,306,369) (2,541,192)
CHANGE IN NET ASSETS (1,891,964)
(1,567,891) 551,974
NET FINANCIAL ASSETS, beginning of year 4,380,199 4,380,199 3,828,225
NET FINANCIAL ASSETS, end of year $ 2,488,235 $ 2,812,308 $ 4,380,199
(See accompanying notes)
Welch I P
tin Independent Member of RKR International
CORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2010
2010
Actual
2009
Actual
OPERATING
Annual surplus $ 3,870,627 $ 1,876,855
Non -cash charges to operations:
Amortization 1,867,851 1,216,311
Changes in:
Taxes receivable 49,441 (175,265)
Accounts receivable (1,143,562) (197,861)
Long-term receivables (5,251) 17,991
Accounts payable and accrued liabilities 249,804 (273,317)
Deferred revenue 64,387 (213,995)
4,953,297 2,250,719
CAPITAL
Acquisition of tangible capital assets (7,306,369) (2,541,192)
FINANCING
Proceeds from long-term debt 23,000
Repayment of long-term debt (22,611) (27,369)
389 (27,369)
NET CHANGE IN CASH AND EQUIVALENTS (2,352,683) (317,842)
CASH AND CASH EQUIVALENTS, beginning of year 2,997,850 3,315,692
CASH AND CASH EQUIVALENTS, end of year $ 645,167 $ 2,997,850
(See accompanying notes)
Welch LLP
An Independent Member of BKR International
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2010
The Corporation of the Municipality of Tweed is a municipality in the Province of Ontario and
operated under the provisions of the Ontario Municipal Act.
1. SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements of the Corporation of the Municipality of Tweed are the
representation of management prepared in accordance with accounting policies prescribed for local
governments, as recommended by the Public Sector Accounting Board of the Canadian Institute
of Chartered Accountants. Significant aspects of the accounting policies adopted by the
Corporation are as follows:
Reporting Entity
The consolidated financial statements reflect the assets, liabilities, revenues, expenditures of the
reporting entity. The reporting entity is comprised of all organizations and enterprises accountable
for the administration of their financial affairs and resources to the Corporation and which are
owned or controlled by the Corporation. In addition to general government tax -supported
operations, they include the following:
The Corporation of the Municipality of Tweed Public Library Board
Interdepartmental and organizational transactions and balances are eliminated.
Accounting for County and School Board Transactions
The assets, liabilities, revenues, and expenditures with respect to the operations of school boards
and the County of Hastings are not reflected in these consolidated financial statements.
Trust Funds
Trust funds and their related operations administered by the Corporation are not reflected in these
consolidated financial statements, but are reported separately on the "Trust Funds Balance Sheet
and Statement of Continuity"
Basis of Accounting
Revenues 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 a receipt of goods or services and
a creation of a legal obligation to pay.
Deferred Revenue
The Corporation receives contributions under the authority of provincial legislation and funding
agencies. These funds, by their nature, are restricted in their use, and, until applied to applicable
projects, are recorded as deferred revenue. Amounts applied to projects are recorded as revenue
in the fiscal period in which they are expended.
Reserves and Reserve Funds
Certain amounts, as approved by Council, are set aside in reserves and reserve funds for future
operating and capital expenditures. Transfers to, or from, reserves and reserve funds are an
adjustment to the respective fund when approved.
7
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An Independent Mernber of EKB. Inter, ational
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2010
1. SIGNIFICANT ACCOUNTING POLICIES (continued)
Government Transfers
Government transfers are recognized as revenues or expenditures in the year that the events giving
rise to the transfer occurred, provided the transfer is authorized, eligibility criteria, if any, have
been met by the recipient, and a reasonable estimate of the amount can be made.
Use of Estimates
The preparation of consolidated financial statements in conformity with accounting policies for
local governments, as recommended by the Public Sector Accounting Board of the Canadian
Institute of Chartered Accountants 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 consolidated financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those estimates.
Taxation and Related Revenues
Property tax billings are prepared by the Corporation based on assessment rolls issued by the
Municipal Property Assessment Corporation ("MPAC"). Tax rates are established annually by
Council incorporating amounts to be raised for local services and amounts the Corporation is
required to collect on behalf of Hastings County for general and library purposes and the Province
of Ontario in respect of education taxes. Realty taxes are billed based on the assessment rolls
provided by MPAC. Taxation revenues are recorded at the time tax billings are issued. A normal
part of the assessment process is the issue of supplementary assessment rolls that provide updated
information with respect to changes in property assessment. Once a supplementary assessment roll
is received, the Corporation determines the taxes applicable and renders supplementary tax billings.
Assessments and the related property taxes are subject to appeal. Any supplementary billing
adjustments made necessary by the determination of such changes will be recognized in the fiscal
year they are determined and the effect shared with the county and school boards as appropriate.
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 ordinary course of operations. The change in non -financial assets during
the year, together with the annual surplus or deficit, provides the Change in Net Financial Assets
for the year.
Tangible Capital Assets
Tangible capital assets are recorded at cost, which includes all amounts that are directly attributable
to acquisition, construction, development or betterment of the asset. The cost, less residual value,
of the tangible capital assets is amortized on a straight-line basis over their estimated useful life as
follows:
8
Welch LIT
An Independent Member of $I£It International
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2010
I. SIGNIFICANT ACCOUNTING POLICIES (continued)
Tangible Capital Assets
a) Asset Categories and Estimated Useful Life
Land - not amortized
Buildings - 40 to 50 years
Vehicles - 5 to 10 years
Equipment - 4 to 20 years
Transportation
Bridges and other structures - 20 to 75 years
Roads - 10 to 70 years
Sidewalks - 40 years
Waste and wastewater networks
Underground networks - 50 years
A full year of amortization is charged in the year of acquisition and none in the year of disposal.
Assets under construction are not amortized until the asset is available for productive use, at which
time the costs are transferred to the appropriate asset category.
(b) Contribution of Tangible Capital Assets
Tangible capital assets received as contributions are recorded at their fair value at the date of
receipt and also are recorded as revenue. Similarly, transfer of assets to third parties are recorded
as an expense equal to the net book value of the assets as of the date of transfer.
2. FINANCIAL INSTRUMENTS
The Corporation's financial instruments consist of cash, taxes receivable, accounts receivable, long-
term receivable, accounts payable and accrued liabilities and long-term debt. Unless otherwise
noted, it is management's opinion that the Corporation is not exposed to significant interest rate,
currency or credit risks arising from these financial instruments.
3. CASH
The balance of cash consists of the following:
2010 2009
Undesignated cash $ 536,896 $ 2,318,088
Designated under Federal gas tax agreement 61,727 664,916
Designated under the Planning Act - Parkland 46,544 14,846
$ 645,167 $ 2,997,850
Cash received under the Federal Gas Tax agreement is restricted for expenditures on
environmentally sustainable infrastructure.
Cash raised under the Planning Act regarding Parkland is restricted for capital costs for the
acquisition of land or other capital expenditures for park or other recreational purposes.
9
Welch LLP
An Independent Memher of BKR International
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2010
3. CASH (continued)
Cash received under deferred revenue is restricted for capital costs for water services and other
recreational facilities.
4. LONG-TERM RECEIVABLE
The balance of long-term receivable consists of the following:
2010 2009
MORTGAGE RECEIVABLE
due January 15, 2018; repayable in monthly
instalments of principal and interest in the
amount of $857. Interest is calculated at the
prime lending rate as established by the Bank
of Montreal plus 1%. The mortgage is secured
by the property located at 13 Bridgewater Road,
Actinolite, Ontario
Tile drainage and shore -line property
assistance loans receivable
5. ACCRUED LIABILITY - WASTE DISPOSAL CLOSURE
$ 22,480 $ 38,453
29,606 8,382
$ 52,086 $ 46,835
The Ontario Environmental Protection Act sets out the regulatory requirements to properly close
and maintain all active and inactive landfill sites. The estimated liability for these expenditures is
based on the cumulative capacity used to date, compared to the total estimated landfill capacity.
6. LONG-TERM DEBT
The balance of long-term debt consists of the following:
2010 2009
Debentures $ 29,606 $ 8,382
Lien notes payable - Chrysler Financial
and GMAC; repayable in monthly instalments
of principal and interest of $2,214. Interest is
calculated at rates of 0% - 1.9% and the notes
are secured by specific automotive units. 7,581 28,416
$ 37,187 $ 36,798
10
Welch LL1P
%n Independent Member of 131CR International
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2010
6. LONG-TERM DEBT (continued)
Outstanding debentures of $29,606 (2009 - $8,382) are recoverable through special charges levied
directly on ratepayers. Outstanding debentures have a maturity date of July 1, 2020, bearing
interest at 6.6%.
Principal repayments over the next five years are estimated to be as follows:
2011
2012
2013
2014
2015
$ 13,018
4,484
4,484
4,484
4,484
7. OPERATIONS OF SCHOOL BOARDS AND THE COUNTY OF HASTINGS
Further to note 1, the taxation, other revenues and expenditures of school boards and the County
of Hastings are comprised of the following:
Taxation $
Taxation from other governments
Amounts received or receivable 1,258,146
Requisition 1,258,146
2010 2009
School
Boards
1,253,003 $
5,143
$ $
8. ACCUMULATED SURPLUS
County
1,336,232
10,094
1,346,326
1,346,326
The accumulated surplus position is comprised of the following:
Equity in tangible capital assets
Less: related debt
Reserves and reserve funds - schedule 2
Amounts to be recovered
Landfill closure and post closure costs
Unrestricted surplus (deficit)
Municipality of Tweed
Municipality of Tweed Public Library Board
School
Boards County
$ 1,085,237 $ 1,302,263
5,275 10,655
1,090,512
1,090,512
$
2010
$ 26,357,623
(7,581)
26, 350,042
2,724,177
(300,000)
1,312,918
1,312,918
2009
$ 20,919,105
(28,416)
20,890,689
4,513,192
(300,000)
378,128 172,506
17,584 22,917
$ 29,169,931 $ 25,299,304
Welch LLP
An Independent Nfenibcr oI BKR international
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2010
9. SEGMENTED INFORMATION
Municipal services are provided by departments. Certain departments that have been separately
disclosed in the segmented information, along with the services they provide, are as follows:
General Government
General government is comprised of council, chief administrative office (CAO/Clerk) department,
and Treasury department. A municipal council is the ultimate authority, subject to provincial law,
for all actions taken on behalf of the municipal corporation in that it exercises both executive and
legislative roles. It fulfills its role by making policies in accordance with the wishes and concerns
of the general public, subject to provincial laws, policies and directives. Council plays a
managerial role by monitoring ongoing administrative performance and ensuring the best care of
resources. The CAO/Clerk is responsible to municipal council for the general control and
management of the affairs of the municipality as prescribed by municipal council. The
CAO/Clerk, as head of the corporation's civic administration, provides leadership and direction
to the Senior Management team, co-ordinates the administrative functions of the Corporation and
exercises general management and control of Municipal operations. The CAO/Clerk ensures
coordinated responsive services are delivered to the Municipality's residents and businesses in
accordance with the approved policies and directions along with providing the following services:
birth and death registrations, marriage, lottery and taxi licensing, commissioning oaths, Municipal
by-laws and minutes. The Treasury department is responsible for the administration of taxes,
accounts payable and receivable, financial statements and all other financial information and
reporting for the Municipality.
Protection to Persons and Property
Protection to persons and property is comprised of police services, fire services, and by-law
enforcement. Police services are provided by the Ontario Provincial Police whose mandate is the
safety of lives and property of citizens to, preserve peace and good order, prevent crimes from
occurring, detect offenders and enforce the law. Fire Services are provided to the Municipality
by volunteer firefighters. By-law enforcement is committed to serve, protect and provide a desired
quality of life for citizens and visitors to the Municipality through education to raise awareness of
community standards, and enforcement of Municipal by-laws to ensure timely compliance with a
professional, unbiased approach.
Transportation Services
The public works department is responsible for the delivery of municipal public works services
related to the planning, development and maintenance of roadway systems, storm water
management and street lighting.
Environmental Services
The Municipality contracts with Dave Moore & Sons for the collection and disposal of household
and commercial solid waste within the village of Tweed. The Municipality contracts with Quinte
Waste Solutions for the collection of household recycling. The Municipality owns and operates
two landfill sites within the Municipal limits. The Municipality contracts with Ontario Clean Water
Agency for the management of municipal drinking water and sanitary sewer systems.
12
Welch LLP
An Independent Member of RKR International
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2010
10. SEGMENTED INFORMATION (continued)
Recreation and Cultural Services
The Parks and Recreation department is a social service with its purpose: to assist individual and
community development to enhance social functioning and to improve the quality of life. The
Parks and Recreation department provides accessible recreational programs including aquatics,
minor ball and skating and operates Municipal facilities, including community halls, arenas, parks,
ball diamonds and soccer fields.
Planning and Development
The Municipality of Tweed, the Township of Stirling-Rawdon, the Town of Deseronto and the
Township of Tyendinaga have entered into an agreement for joint building services. The joint
building services agreement came into effect April 1, 2005. Building services is responsible for
all economic development, building and planning matters, including the issuance of building
permits, land severance and minor variance applications, applications for official plan amendments
and zoning by-law amendments, site plan control and subdivision matters and property standards
inspections.
Tweed Public Library
Tweed Public Library contributes towards the information needs of the Municipality's citizens
through the provision of library services.
10. PENSION AGREEMENTS
The Corporation makes contributions to the Ontario Municipal Employees Retirement Fund
(OMERS), which is a multi -employer plan, on behalf 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 rate of pay.
The amount contributed to OMERS for 2010 was $50,872 (2009 - $55,623) for current service and
is included as an expenditure on the "Consolidated Statement of Financial Operations".
11. BUDGET FIGURES
Budgets established by the Corporation are based on a project oriented basis, the costs of which
may be carried out over one or more years. Although they are not directly comparable with
current year actual amounts, budget figures have been reflected on the "Consolidated Statement of
Financial Operations" and the "Consolidated Statement of Change in Net Financial Assets".
Budget figures have been reclassified for the purpose of these financial statements to conform with
PSAB reporting requirements.
13
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An Independent Member of BKR International
474
COR POR AT ION OF THE MUN ICIPA LITY OF T WEED
SC HE DULE 1 - CON SOLIDA TED STA TE MENT OF TAN GIBLE CA PITAL ASSETS
DECEMBER 31, 2010 O1.
GEN ERA L [N ERASTRU CTURE TOTALS
Assets H ants U ndergroun d Br idges
Under and an d Othe r and O ther
Land Buildings V ehicles Equipment Other Contractio n Fac ilities RPadS Ne tworks Struclures 2010
COST
Balance, beginning of year 5 1, 298, 268 5 2, 535,416 $ 2,132.896 5 1,165,219 S 175, 004 $ 3,344 $ 2,651,737 $ 16, 189,800 5 3,214,685 5 7,133,000 $ 36519,369
A ddition s during year 381,130 1,422, 324 149. 789 71,153 42, 499 108. 339 2, 714,162 1. 556,619 860 .977 7,309,712
Disposals during year - 230,656 129.494 32,175 15,750 3,344 523,939. 22,663 5 .442 963,465
Ba lance. en d or year
1,680.098 3,727,082 2.153,191 1,224,197
201,753
108.339 2,651,737 18,382047 4,748,641 7,965 ,535 42,865.616
A CCUMULAT ED AMORT IZ AT ION
Balance, beginning of year - 1032, 636 1, 126,347 491. ,399 70,754 862,850 9,758,824 748,869 1,508,595 I5-600,264
A mortizatio n during year 24.235 95,115 168,975 72,304 26,679 - 81,191 1,172, 356 68,713 131582 1,867,850
Accumulaled amortization on disposals - 235,658 129,494 32,175 15,750 - 523. 939 22,663 5,442 960.121
Balance, end of year 54,235 897,093 1,165,828 531,518 81,683 951,241 10,407,241 814,919 1,634,235 16,507,993
N et Book V alue ofT anglble C apital Assets $ 1,655, 863 S 2,829.969 $ 987,363 S 692,679 S 120,070 $ 108,339 3 1,700,496 5 7,974,802 5 3,933,722 S 6,354,300 0 26,357,623
De ce mber 31, 2009
G EN ERAL
Land
INFR ASTRUCTU RE TOTALS
Assets Plants
Under and
Bu ildings V ehicles Equinmen l Othe r Construction Facilities
Roads
Undergrou nd Bridges
and Other and Other
Networks Structures
2009
COST
Balan ce , beginn ing of year S 1,159,712 S 1.842,674 S 2,116,893 5 1,141,208 S 133,401 S - 2.651,737 $ 15,055 ,503 S 2,921,849 S 6,955 ,199 5 33,978,176
Addition sdurmg year 138, 556 692,742 16,003 44,011 41,603 3,344 - 1,134,297 292.836 177,801 2.541,193
Dispos als du ring year
Balance, en d of year 1,296,268 2,535,416 2,132,896 1.195,219
175,004
3,344 2,651,737 16,189,800 3,214,665 7,133 ,005 36,519,369
ACC UMU LAT ED A MORTIZA TION
Balance, beginn ing of year - 980,208 974, 278 429,413 55,205 774 ,456 9,982562
Amortization during year 52. 428 152,069 61,976 15,549 96,392 676265
Accu mu lated amo rtization on disposals - - -
Balance, end of year
Ne t Bo ok V alue of T angible Ca pital Assets
1,032,636 1,126.347 491,369 70,754
694,933
53 ,936
1,392.895
115 ,705
14,383,952
1,216,312
862,850 9,758,824 746,869 1,506,595 15,600,264
S L298.248- $ 1,502,780 $ 1,006,549 $ 693,830 $ 104,250 $ 3,344 5 1,786,887 9 6,430,976 § 2,465,816 § 5,624,405 5 20,919,105
An Indep endent Member of B KR Inter
14
COR PORA TION OF TH E MUNICIPALITY OF TWEED
SCHE DULE 2 - C ONSOL IDATED SCH EDULE OF CONTINUIT Y OF RESERV ES AND RESERVE FUNDS
December 31, 2010
Revenu e Con tribu tion s Tran sfers
Bala nc e, Interest on
beginning Reserve From
of year Fun ds Operations
Total
To Ba lan ce,
To Capital End of
Operation s Acqu isitio ns To ta l Year
R eserve Funds
Waste Site re clamation $ 702,295 $ 18,889 $ 111,853 S 833,037 $
Ro ads 56,048 318 9,798 66,164
Park lands 14,846 1,169 30,529 46,544
Village infrastructure 594,165 1,333 - 595,498
Gas tax 664,916 2,989 317,837 985,742
Libra ry 32,316 120 - 32,436
106,900 $ 106,900 $ 726,137
66,164
46,544
425,000 425,000 170,498
924,015 924,015 61,727
32,436 32 ,436 -
2,064,586 24,818 470,017 2,559,421 1,488,351 1,488,351 1,071,070
Reserv es
Capital a sset acqu isition 264,803 - - 264, 803 - 264,803
Working capital 685,196 - 685,196 - 419,000 419,000 266,196
Con tingencies 150,000 - 150,000 - 150 ,000
Roads 25,000 - 25,000 - 25,000
Wate r an d sewer 250,000 - 93,000 343,000 - 343,000
Mun icipal bu ildin g expenditu re 12,321 - 1.2,321 - 12 ,321
Capital acquisitions - Fire 106,600 - 60,000 166,600 108,300 108,300 58,300
Capital acquisitions - Aren a 27,300 - 2,500 29,800 16,000 16,000 13,800
Fire 3,799 - - 3,799 3,799 3,799 -
Fire - Equipmen t Main tenan ce - - 20,000 20,000 - 20,000
Heritage 30,000 - - 30,000 - 30,000
Library 50, 000 - 50,000 50,000 50,000 -
Pool 30,000 - - 30,000 30,000 30,000 -
Hamle ts 15,020 - - 15,020 3,400 3,400 11 ,620
Parks 9,400 - 1,000 10,400 - - 10,400
Public works - Equ ipmen t 150,000 185,500 335,500 150,000 150,000 185,500
Public works - Winter Main tenan ce - - 50,000 50,000 - 50,000
Public wo rks - Bridges - - 50,000 50,000 - 50,000
Tran spo rtation -C lement's Bridge 359,167 - - 359,167 197,900 197,000 162,167
Library -buildin g 104,166 - - 104,166 104,166 104,166 -
Transportation - Marlban k road 175,834 175,834 175,834 175,834
2,448,606 - 462,000 2,910,606 1,257,499 1,257,499 1,653,107
Total $ 4,513,192 $ 24,818 $ 932,017 $ 5,470,027 $ - $ 2,745,850 $ 2,745,850 8 2,724,177
15
7 .4
lemuer of BKR Internation al
REVENUES
COR PORATION OF THE MUNICIPA LITY OF TWEED
SCHEDULE 3 - CONSOLIDATED SCHEDULE OF SEGMENT DISCLOSURE STATEMENT OF OPERATIONS
DECEM BER 31, 2010 BUDG ET
G ENERAL PROTECTION TANSPORTATION ENVIROM ENTAL RECREATION AND PLANNING AND TWEED PUBLIC ELIMINATIONS CONSOLIDATED
GOV ERNM EN T SERV ICES SERV ICES SERVIC ES CULTURAL DEVELOPM ENT LIBRARY
SERVICES BOARD
M unicipal Tax ation $ (473,106) $ 932,826 $ 1,792,383 $ 32,640 $ 266,291 $ 1,769 $ $ $ 2,552,823
Taxation fro m other gove rnments 24,300 - - - 24,300
Government Transfers
Government of Canada 307,994 - 1,000 - 1,232 310,226
Prov ince of O nta rio 1,539,000 154,300 - 40,000 180,000 17,549 - 1,930,849
O the r M unicipalities - - 73,440 (73,440) -
User charges 24,500 4,000 20,000 704,100 126,700 1,565 (6,000) 874,865
Investment Inco me 42,000 - - - - 42,000
Penalty and interest on taxes 116,000 - - 116,000
Deve lopment charges - - -
Donations - 3,430 3,430
M iscellaneous 52,200 6,000 - 5,055 - 63,255
1,632,888 1,097,126 1,812,383 776, 740 573,991 1,769 102 ,271 (79,440) 5,917,728
CURRENT - EXPENDITURES
Sala ries wages and emplo yee bene fits 422,729 131,637 691,323 183,650 172,500 - - 79,183 - 1,681,222
Interest on long-term debt - - - 569 569
M aterials an d Supplies 357,160 126,493 933,043 152,284 148,051 1,200 17,088 1,765,319
Contracted services and general services 838,796 188,016 260,000 - 1,286,812
Re nts and Financial Expenses - - 6,000 (6,000) -
Extemmal Transfers - - - 73,440 (73,440) -
Amortization 21,107 63,858 1,459,095 199,720 64,517 - 39,553 - 1,867,850
800,996 1,160,984 3,271,477 825,654 478,508 1,769 141,824 (79,440) 6,601,772
$ 831,892 $ (63,858) $ (1,459,094) $ (48,914) $ 95,483 $ - $ (39,553) $
$
(684,044)
16
An E ndependent Member of BKCk Internati onal
REVENUES
CORPORATION OF THE M UNICIPALITY OF TWEED
SCHEDULE 3 - CONSOLIDA TED SCHEDULE OF SEGM ENT DISCLOSUR E STATEM ENT OF OPERATIONS
DECEMBER 31, 2010 ACTUAL
GENERAL PR OTECTION TANSPORT AT1ON ENV IR OMENTA L RECREATIO N AND PLANNING AND TWEED PUBLIC ELIMINATIONS CONSOLIDATED
GOVERNMENT SERVICES SERVICES SERVICES CULTURAL DEVELOPM ENT LIBRARY
SERV ICES BO ARD
Munieipa€taxation $ (455,588) $ 932,826 $ 1,792,225 $ 31,790 $ 266,291 $ 1,769 $ $ $ 2,569,313
Taxation fro m othe r governments 24,901 - - - 24,901
Gove rnment Transfers
Governmen t of Canada 308,976 - - - 1,000 1,232 - 311,208
Province of Onta rio 1,539,000 154,300 40,000 204,027 31,766 - 1,969,095
Other municipalities - - - 73,440 (73,440) -
User charges 15,390 12,235 23,311 702,611 152, 833 922 (6,000) 901,302
Inv estment Income 47,094 _ - - 569 331 47,994
Pena lty and interest on tax es 127,332 - - 127,332
Dona tions - - - 2,719 2,719
Miscellaneous 58,819 6,797 - 25 13,538 - 79 ,179
1,665,924 1,106,158 1,815,536 774,401 624, 176 2,338 123,950 (79,440) 6,033,043
CURRENT -EXPENDITURES
Salaries wages and emplo yee be nefits 429,418 148,603 656,893 184, 067 186,509 83,730 1,689,220
Interest on long-term debt - 569 - 569
Materials and Supplies 319,136 90,039 856,073 278,121 293,003 1,017 9,465 (73,440) 1,773,414
Contrac ted services and general services 809,855 156,473 323,276 - 1,289,604
Rents and Financial Expenses - - 6,000 (6,000) -
External Tra nsfers 40,355 - - - - 40,355
Interfunc t€ona l adjustments - - - - - - -
Amortization 21,107 63, 858 1,459,095 199,724 84,517 39,553 - 1,867,850
769,661 1,152,710 3,128,534 985,184 564 ,029 1,586 138,748 (79,440) 6,661,012
$ 896,263 $ (46,552) $ (1,312,998) $ (210,763) $ 60,147 $ 752 $ (14,798) $ - $ (627,969)
17
An 6 dependeE t Member of BKR Intern ati onal
REVENUES
CORPORATION OF THE MUNICIPALITY OF TWEED
SCHEDULE 3 -CO NSOLIDATED SEGMENTED STATEMENT OF O PERATIONS
DECEMBER 31, 2009 A CTUAL
GENERAL PROTECTION TANSPOR TATION ENV IROMENTAL RECREATION AND PLANNING AND TWEED PUBLIC ELIMINATIONS C ONSOLID ATED
GO VER NMEN T SERVICES SERVICES SERVICES CULTURAL DEVELO PMENT LIBRARY
SERV ICES BOARD
Municipal taxation $ (655,189) $ 889,525 $ 1,650,134 $ (9,373) $ 252,075 $ (5,300) $ - $ $ 2,121,872
Taxation from other governments 25,696 - - - - 25,696
Government Tr ansfers
G overnment of Can ada 1,368 - 270,269 63,333 1,140 326,110
Province of Ontario 1,800,400 138,200 87,917 40,000 65,858 - 13,176 - 1,945,551
O ther municipalities - 145,929 - - 72,000 (72,000) 145,929
User charges 6,000 4,000 64,486 644,042 157,302 641 (6,000) 870,471
Investment Income 20,486 - - 652 944 - 22,082
Penalty an d in terest on taxes 121,431 - - - - - 121,431
Donations - - - 268,944 - 6,257 - 274,201
Miscellaneous 122,508 5, 935 - 5,058 1,773 11,785 3,981 - 151,040
1,242,700 1,037,660 2,218,735 679,727 799,285 7,137 97,139 (78,000) 6,004,383
CURRENT -EXPENDITURES
Salaries wages and e mployee benefits
Interest on lo ng-term debt
Materials and Supplies
Contracted serv ices and general services
Rents a nd Financial Expenses
Externa l Transfers
Interfunctional adjustments
Amortization
405,535 134,748 632,726 180,486 167,285 - 80,889 1,601,669
223 - 652 - - 875
392,156 128,547 1,045,501 177,289 206,146 660 8,606 (72,000) 1,887,104
838,996 35,194 238,661 - - - 1,112,851
- - - 6,000 (6,000)
13,419 61,719 930,368 163,992 35,097 - 11,715 1,216,310
811,110 1,164,010 2, 644,012 760,427 408,528 1,312 107,410 (78,000) 5,818,809
$ 431,590 $ (126,350) $ (425,277) $ (80,700) $ 390,757 $ 5,825 $ (10,271) $ - $ 185,574
18
:1n Mdependent Member of BKF
HF
CORPO RATION OF THE M UNICIPALITY OF TWEED
SCHEDULE 4 - CONSOLID ATED SCHEDULE OF RECONCILATION OF FINA NICAL PLA N TO THE BUDGET
Y EAR ENDED DECEMBER 31,2010
TA NGIBLE TWEED
CAPTIAL PUBLIC
OPERATING CAPITA L RESERVES A ND ASSET LIBRARY PSAB
BUDGET BUDG ET RESERVE FU NDS A DJUSTMENTS BOARD ELIM INA TIONS BUDGET
REVENUES
Mun icipal Ta xa tion $ 2,552,603 $ - $ $ $ S $ 2,552,803
Taxation from other go vernments 24,300 24,300
G overnment transfers
Cana da 308,994 1,232 310,226
Ontario 1,913,300 17,549 - 1,930,849
Other Municipal 73,440 (73,446.40) -
User fees and sa le of go ods and services 879,300 1,565 (6.000 00) 874,865
Inv estme nt income 42,000 - - 42,000
Penalty and interest on taxes 116,000 - 116,000
D eve lopment charges - - -
Donations 3,430 3,430
Misce llaneous 58.200 5,055 - 63,255
5,894,897 102,271 (79,440.00) 5,917,728
EXPENDITURES
Current
Genera l governme nt 779,889
Protection services 1,097,125
Transportation service s 1,812,383
Environmentai services 625,933
Recreation and cultural services 393,990
Planning an d deve lopment 1,769
21,107
63,856
1, 459,094
199,721
124,071
Capital
General government 115,000 115,000
Protection serv ice s 27,472 - 27,472
Transportation services 6,410,899 6,410,899
Env iron men tal se rvices 561,368 561,368
Recreation and cultural services 1,751,254 1,751,254
NET R EVENUES (EXPENDITURES)
4,711,090 8,865,993
1,183,607 (8,855,993)
102,271 (79,440.00)
6,998,142 102,271
800,996
1,160,984
3,271,477
825,654
540,892
1,769
(79,440.00) 6,601,772
6,998,142 (684,044.00)
O THER INCOME A ND EXPENSES RELATED TO CAPITAL
Municpal taxation 812,046 812,046
Govern ment transfers
Canada 2,457, 088 2,467,088
Onta rio 2,467,088 - - 2,467,088
Othe r
Donations 200,400 200,000
5,945,222 5,946,222
FINANCING AND TRANSFERS
Debt repayment (22,611) 22,611
Benefiting lando wners principal repayments 1,776 - - (1,776)
Transfers from (to ) other funds (1, 113,345) 2,919,771 (1 ,806,426) -
(1,134,150) 2,919,771 (1,806,426) 20,835
ANNUAL SURPLUS (DEFICIT)
$ 49,627 $ - $ (1,806,426) $ 7,018,977 $ S $ 5,262,178
19
CORPORATION OF THE MUNICIPALITY OF
TWEED TRUST FUNDS
FINANCIAL STATEMENTS
December 31, 2010
Welch LLP
An Independent Member of BKR hternational
elch LP
INDEPENDENT AUDITOR'S REPORT
To the Members of Council of the
Corporation of the Municipality of Tweed
We have audited the financial position of the CORPORATION OF THE MUNICIPALITY OF
TWEED Trust Funds as at December 31, 2010 and the statement of continuity for the year then ended,
and a summary of significant accounting policies. These financial statements have been prepared by
management using the cash receipts and disbursements basis of accounting described in the 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 the cash receipts and disbursements basis of accounting described in the notes to
financial statements; this includes determining that the cash receipts and disbursements basis of accounting
is an acceptable basis for the preparation of the financial statements in the circumstances, and for such
internal control as management determines is necessary to enable the presentation 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 statement.
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 presents fairly, in all material respects, the cash receipts and
disbursements and financial position of the CORPORATION OF THE MUNICIPALITY OF TWEED
Trust Funds for the year ended December 31, 2010 in accordance with the cash receipts and
disbursements basis of accounting described in the notes to financial statements.
tLA
Belleville, Ontario CHARTERED ACCOUNTANTS
October 25, 2011 LICENSED PUBLIC ACCOUNTANTS
Welch LLP - Chartered Accountants
525 Dundas Street East, Belleville, Ontario K8N I G4
T: 613 966 2844 F: 613 966 2206 W: www.weichllp.com
An Independent Member of BIER International
21
Belleville I Campbellford Cornwall I Gatineau 1 Napanee I Ottawa I Pembroke Picton I Renfrew I Trenton
CORPORATION OF THE MUNICIPALITY OF TWEED
TRUST FUNDS
BALANCE SHEET
DECEMBER 31, 2010
ASSETS
Ontario Santa
Home Claus
Recreation Renewal Parade
Associations Plan Fund Total
Cash $ - $ 3,388 $ 883 $ 4,271
Investments 11,570 - 11,570
Loans receivable - 7,834 - 7,834
$ 11,570 $ 11,222 $ 883 $ 23,675
FUND BALANCE
Fund balances
Approved by Council:
Reeve
$ 11,570 $ 11,222 $ 883 $ 23,675
CAOICIerk
(See accompanying notes)
Welch LIT
An Independent \iember of BKR International
CORPORATION OF THE MUNICIPALITY OF TWEED
TRUST FUNDS
STATEMENT OF CONTINUITY
YEAR ENDED DECEMBER 31, 2010
Ontario Santa
Home Claus
Recreation Renewal Parade
Associations Plan Fund
Total
FUND BALANCES, beginning of year $ 11,541 $ 11,222 $ 1,083 $ 23,846
RECEIPTS
Donations 1,100 1,100
Interest earned 29 - 29
EXPENDITURES
Parade expenses
Administration
Funds returned to Province
29
1,100 1,129
1,300 1,300
1,300 1,300
FUND BALANCES, end of year $ 11,570 $ 11,222 $ 883 $ 23,675
(See accompanying notes)
23
Welch LLP
An Independent Member of MR' International
CORPORATION OF THE MUNICIPALITY OF TWEED
TRUST FUNDS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2010
1. ACCOUNTING PRINCIPLES
Basis of Accounting
Capital receipts and income are reported on the cash basis of accounting.
Expenditures are reported on the cash basis of accounting with the exception of administrative
expenses which are reported on the accrual basis of accounting, which recognizes expenditures as
they are incurred and measurable as a result of the receipt of goods or services and the creation
of a legal obligation to pay.
2. ONTARIO HOME RENEWAL PROGRAM
The Ontario Home Renewal Program was established by the Ontario Ministry of Housing in 1973
to provide grants for municipalities to make loans to assist owner occupants to repair, rehabilitate
and improve their homes to local property standards. Individual loans are limited to $7,500 of
which the maximum forgivable portion is $4,000.
Ontario Home Renewal Program loans receivable at December 31, 2010 consist of repayable loans
totalling $7,834 and forgivable loans totalling $NIL. Loan forgiveness is earned and recorded at
a rate of up to $600 per year of continued ownership and occupancy. In the event that the home
owner ceases to occupy the home, the balances of the repayable loan and the unearned forgivable
loan immediately become due and payable.
24
Welch LLP
An Independent Member of BKR International