HomeMy Public PortalAbout2013 Financial StatementsCORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2013
Welch
CORPORATION OF THE MUNICIPALITY OF TWEED
FINANCIAL STATEMENTS
DECEMBER 31, 2013
Management's Responsibility for the Consolidated Financial Statements 2
Independent Auditor's Report 3
Consolidated Statement of Financial Position 4
Consolidated Statement of Operations and Accumulated Surplus 5
Consolidated Statement of Change in Net Financial Assets 6
Consolidated Statement of Cash Flows 7
Notes to Consolidated Financial Statements 8-17
Schedule 1 - Consolidated Statement of Tangible Capital Assets 18
Schedule 2 - Consolidated Statement of Continuity of Reserves and Reserve Funds 19
Schedule 3 - Consolidated Schedule of Segment Disclosure Statement of Operations 20-22
Schedule 4 - Consolidated Schedule of Reconciliation of Financial Plan to the Budget 23
Trust Funds:
Management's Responsibility for the Trust Fund Financial Statements 25
Independent Auditor's Report 26
Statement of Financial Position 27
Statement of Continuity 28
Notes to Financial Statements 29
Welch
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 CORPORATION OF THE
MUNICIPALITY OF TWEED, which comprise the consolidated statement of financial position at
December 31, 2013 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 consolidated financial
statements in accordance with Canadian public sector accounting standards, and for such internal control
as management determines is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these consolidated 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 consolidated 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 consolidated 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 consolidated 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 consolidated 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, consolidated the financial statements present fairly, in all material respects, the financial
position of CORPORATION OF THE MUNICIPALITY OF TWEED as at December 31, 2013 and
the results of its operations and its cash flows for the year then ended in accordance with Canadian public
sector accounting standards.
(,joa 1J'
Belleville, Ontario CHARTERED ACCOUNTANTS
June 24, 2014 LICENSED PUBLIC ACCOUNTANTS
...13
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525 Dundas Street East, Belleville, Ontario K8N 104
T: 613 966 2844 1': 613 966 2206 W: www.welchllp.com
An Independent Member of BKR International
Felleville Campbellford Cornwall Gatineau I Napancc Ottawa Pembroke I Picton Renfrew Trenton
CORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
DECEMBER 31, 2013
FINANCIAL ASSETS
Cash - note 4
Taxes receivable
Accounts receivable
Long-term receivable - note 5
LIABILITIES
Accounts payable and accrued liabilities
Accrued liability - Waste disposal closure - note 7
Deferred revenue - note 8
Long-term debt- note 9
NET FINANCIAL ASSETS
NON -FINANCIAL ASSETS
Tangible capital assets - note 1, schedule 1
Inventories of supplies
Prepaid expenses
ACCUMULATED SURPLUS - note 10
Contingent liabilities - note 14
Approved by Council:
._ Mayor
CAO/Clerk
(See accompanying notes)
2013
$ 3,745,061
1,047,995
331,578
62,121
5,186,755
2012
$ 2,577,177
1,013,793
526,591
69.244
4,186,805
189,483 $
612,000
1,347,052
62,121
2,210,656
2,976,099
25,420,476
25,376
704
25,446,556
$ 28,422,655
160,031
584,000
595,620
69,244
1,408,895
2,777,910
26,101,897
137,993
824
26,240,714
$ 29,018,624
.,./4
Welch
CORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED STATEMENT OF OPERATIONS AND ACCUMULATED SURPLUS
YEAR ENDED DECEMBER 31, 2013
REVENUE
Municipal taxation
Taxation from other governments
Grants
User charges
Investment income
Penalties 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
Tangible capital assets gain
Donations
Parkland
User charges - water and sewer
INTEREST EARNED ON RESERVE FUNDS
ANNUAL SURPLUS (DEFICIT)
ACCUMULATED SURPLUS, beginning of year
ACCUMULATED SURPLUS, end of year
2013
Budget
(unaudited)
2013
Actual
$ 3,155,289 $ 3,149,194
18,500 20,407
1,599,619 1,632,469
818,536 826,876
14,227 22,997
128,000 138,045
81,710 124,191
5,815,881
781,531
1,179,952
3,310,590
1,099,019
745,942
148,372
7,265,406
(1,449,525)
TO CAPITAL
435,511
6,666
23,578
129,334
595,089
(854,436)
29,018,624
$ 28,164.188
(See accompanying notes)
2012
Actual
$ 2,979,811
18,348
1,646,021
833,515
18,582
134,789
153,897
5,914,179 5,784,963
857,964
1,135,095
3,282,948
990,414
758,350
100,187
7.124,958
(1,210,779)
435,511
(23,785)
4,083
(15,868)
37,471
16,059
129,334
582,805
32,005
(595,969)
29,018,624
$ .28,422,655
756,557
1,165,380
2,985,491
1,072,916
718,486
139,438
6,838,268
(1,053,305)
543,194
90,463
179,141
7,500
105,666
925,964
14,665
(112,676)
29,131,300
$ 29,018,624
...15
Welch
CORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED STATEMENT OF CHANGE IN NET FINANCIAL ASSETS
YEAR ENDED DECEMBER 31, 2013
ANNUAL SURPLUS (DEFICIT)
Amortization of tangible capital assets
Acquisition of tangible capital assets
Changes in assets under construction
Loss (Gain) on sale of tangible capital assets
Proceeds on sale of tangible capital assets
Acquisition of inventories
Acquisition of prepaid expense
Consumption of inventories
CHANGE IN NET ASSETS
NET FINANCIAL ASSETS, beginning of year
NET FINANCIAL ASSETS, end of year
2013
Budget
(unaudited)
$ (854,436) $
1,823,180
(922,694)
46,050
2,777,910
2013
Actual
(595,969) $
1,823,180
(1,172,876)
3,698
15,868
11,551
(25,376)
120
137,993
198,189
2,777,910
2012
Actual
(112,676)
1,791,998
(1,323,300)
79,927
(7,500)
7,500
(137,993)
(824)
32,220
329,352
2,448,558
$ 2823,960 $ 2,976,099 $ 2,777,910
(See accompanying notes)
...16
Welch
CORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2013
OPERATING
Annual surplus (deficit)
Non -cash charges to operations:
Amortization
Loss (Gain) on sale of tangible capital asset
Waste disposal closure
Changes in non -cash charges to operations (net change):
Taxes receivable
Accounts receivable
Inventory
Prepaid expenses
Long-term receivable
Accounts payable and accrued liabilities
Deferred revenue
CAPITAL
Acquisition of tangible capital assets
Proceeds on sale of tangible capital assets
CASH FLOWS FROM .FINANCING ACTIVITIES
Repayment of long-term debt
NET CHANGE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, beginning of year
CASH AND CASH EQUIVALENTS, end of year
(See accompanying notes)
2013
$ (595,969)
1,823,180
15,868
28,000
1,271,079
(34,202)
195,013
112,618
120
7,122
29,452
751,432
2,332,634
2012
$ (112,676)
1,791,998
(7,500)
22,200
1,694,022
(50,428)
(14,801)
(105,773)
(824)
6,719
(45,295)
390,604
1,874,224
(1,169,178) (1,243,373)
11,551 7,500
(1,157,627) (1,235,873)
(7,123)
1,167,884
2,577,177
(6,719)
631,632
1,945,545
$ 3745,061. $ 2 577 177
J7
Welch
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2013
The Corporation of the Municipality of Tweed is a municipality in the Province of Ontario and
operates 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 Chartered Professional
Accountants of Canada. 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 schools 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 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.
.J8
Welch _.. .....
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2013
1. SIGNIFICANT ACCOUNTING POLICIES (continued)
Reserves and Reserve Funds
Certain amounts, as approved by Council, are set aside in reserves and reserve funds for future
operating and capital expenditures. Transfer to, or from, reserves and reserve funds are an adjustment
to the respective fund when approved.
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 Chartered Professional
Accountants of Canada 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 expenditures during
the reporting period. Management makes accounting estimates when determining the estimated useful
life of the Corporation's tangible capital assets, its allowance for doubtful accounts, the carrying value
of its inventory and solid waste landfill closure and post -closure costs. 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 assessments. Once a supplementary assessment roll is received, the Corporation
determines the taxes applicable and renders supplementary 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.
Welch
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2013
1. SIGNIFICANT ACCOUNTING POLICIES (continued)
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:
(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.
Inventories of Supplies
Inventories of supplies held for consumption are recorded at the lower of cost and replacement cost.
2. ADOPTION OF NEW ACCOUNTING STANDARDS
During the year the Corporation prospectively adopted Public Sector Accounting Standards of the
Chartered Professional Accountants Handbook, PS3410 Government transfers and PS3510 Tax
revenue. There was no impact on the consolidated financial statements, as a result of the adoption of
these new standards.
3. 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.
.110
Welch
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2013
4. CASH
The balance of cash consists of the following:
Market Value 2013 2012
Undesignated cash
Petty cash and chequing accounts $ 2,124,313 $ 2,142,602 $ 1,346,731
Guaranteed Investment Certificates 89,348 89,348 82,342
Mutual and segregated funds 547,671 569,201 543,730
Tweed Public Library Board 44.758 44,758 42,241
2,806,090 2,845.909 2,015,044
Designated cash
Federal gas tax agreement - chequing account 849,019 849,019 499,117
Planning Act - Parkland - chequing account 66,193 50,133 63,016
915,212 899,152 562,133
$ 3,721,302 $ 3,745,061 $ 2,577,177
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.
5. LONG-TERM RECEIVABLE
The balance of long-term receivable consists of the following:
Tile drainage and shore -line property assistance
loans receivable
6. BANK INDEBTEDNESS
2013 2012
$ 62,121 $ 69,244
The Corporation has an operating line of credit of $500,000 at an interest rate of prime plus .5% of
which $Nil was utilized at year-end.
./11
Welch
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2013
7. ACCRUED LIABILITY - WASTE DISPOSAL CLOSURE
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
recognized based on the cumulative capacity used to date, compared to the total estimated landfill
capacity. Estimated total expenditures represent the sum of the future discounted cash flows for the
closure and post -closure care discounted at 4% and using an assumed rate of 2% for inflation.
The Corporation has two active and three closed landfill sites. For the closed sites, the estimated
liability is recognized immediately. The estimated liability for the Marlbank and Hunt Road waste
disposal sites is $612,000 based on the present value of closure and post -closure costs estimated at
$1,095,496
The Marlbank Road Waste Disposal site has an estimated remaining capacity of 51% and is expected
to provide capacity for 23 years based on current waste generation rates.
The Hunt Road Waste Disposal site was closed to use by the public, but will remain open to dispose of
waste by the Municipality until filled, has an estimated remaining capacity of 30% and is expected to
provide capacity for 43 years based on current waste generation rates.
A reserve fund of $801,737 has been established to provide for this liability and is reported in
schedule 2 to the financial statements.
Post -closure care is estimated to continue for a period of approximately 25 years.
8. DEFERRED REVENUE
The balance of deferred revenue consists of the following:
Balance Balance
December 31, Transferred to December 31,
2012 Additions income 2013
Obligatory Reserve Funds:
Federal gas tax $ 499,117 $ 349,902 $ $ 849,019
Parkland 63,016 3,176 16,059 50,133
Other
Government transfers 12,678 420,750 12,678 420,750
Miscellaneous 11,109 8,724 19,833
Tweed Public Library 9300 - 2,383 7,317
$ 595,620 $ 782,552 $ 31,120 $ 1,347,052
...112
Welch
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2013
9. LONG-TERM DEBT
The balance of long-term debt consists of the following:
2013 2012
Debentures. $ 62,121 $ 69,244
Outstanding debentures of $62,121 (2012 - $69,244) 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:
2014
2015
2016
2017
2018
10. ACCUMULATED SURPLUS
The accumulated surplus position is comprised of the following:
Equity in tangible capital assets
$ 7,550
8,003
7,124
7,552
8,005
2013 2012
$ 25,420,476 $ 26,101,897
Reserves and reserve funds - schedule 2 3,057,566 2,947,262
Amounts to be recovered
Landfill closure and post -closure costs
Unrestricted surplus
Municipality of Tweed 537,974
Municipality of Tweed Public Library Board 18,639
$ 28,422,655
(612,000) (584,000)
537,572
15,893
$ 29 018624
,113
Welch
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2013
11. 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 (CAOJCIerk) 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 with 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.
.114
Welch
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2013
11. SEGMENTED INFORMATION (continued)
Recreation and Cultural Services
The Parks and Recreation department is a social service whose purpose is 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 the 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.
12. 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. Employees and employers contribute jointly to the plan.
Contributions for employees with a normal retirement age of 65 were being made at a rate of 9.0%
(2012 - 8.3%) for earnings up to the annual maximum pensionable earnings of $51,100 (2012 -
$50,100) and at a rate of 14.6% (2012 - 12.8%) for earnings greater than the annual maximum
pensionable earnings.
Contributions for employees with a normal retirement age of 60 were being made at a rate of 9.3%
(2012 - 9.4%) for earnings up to the annual maximum pensionable earnings of $51,100 (2012 -
$50,100) and at a rate of 15.9% (2012 - 13.9%) for earnings greater than the annual maximum
pensionable earnings.
The amount contributed to OMERS for 2013 was $90,298 (2012 - $74,572) for current service and is
included as an expenditure on the "Consolidated Statement of Operations and Accumulated Surplus".
The actuarial valuation of the OMERS plan at December 31, 2013 indicated a deficit in the plan.
OMERS is a multi -employer plan, any pension plan surplus or deficit are a joint responsibility of
Ontario Municipal organizations and their employees. As a result, the Corporation does not recognize
any share of the OMERS pension surplus or deficit.
.. .115
Welch
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2013
13. 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 Operations and
Accumulated Surplus" 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.
14. CONTINGENT LIABILITIES
In the course of its business, the Corporation becomes involved in various claims and legal
proceedings. Litigation is subject to many uncertainties and the outcome of individual matters is not
predictable. An estimate of the contingency cannot be made since the outcome of these matters cannot
be determined at this time. The Corporation carries liability insurance. Any settlement in excess of
amounts which have been recorded in the accounts and insurance coverage will be accounted for as a
current transaction in the year of settlement.
Contingent environmental liabilities may arise out of existing and former operations. Such liabilities
are different from environmental remediation and solid waste landfill closure and post -closure care
liabilities because the liabilities are not determinable, the conditions which may give rise to the
expenditures are uncertain, and the future expectations of the applicable regulatory authorities are not
known. Potential costs that may arise in connection which such liabilities are not included in the
Corporation's consolidated statement of operations and accumulated surplus until the source and
nature of the obligation becomes clear and is reasonably estimable.
..116
ICh
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2013
15. COMMITMENTS
The Corporation has contracts committing it to payments in future years. The following agreements
existed at December 31, 2013:
The Corporation has outstanding capital projects contractual commitments of approximately
$768,000.
An agreement with the Province of Ontario for policing services. Costs will be charged on the basis of
services used. Base charges for the 2013 year were $758,337
An agreement with David Moore & Son for the collection of household waste to July 31, 2014. Base
charges for the 2013 year were $32,000.
An agreement with Quinte Waste Solutions for the collection of recycling. Base charges for the 2013
year were $48,057.
An agreement with Ontario Clean Water Agency for the operating, maintaining and managing of the
water and waste water systems to December 31, 2015. Base charges for the 2013 year were $251,850.
Agreements with William Broek and Larry Palmateer for winter road maintenance to 2013 and 2015.
16. COMPARATIVE FIGURES
Certain comparative figures for 2012 have been reclassified to conform to the financial statement
presentation adopted for 2013.
17. 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:
2013 2012
School School
Boards County Boards County
Taxation $ 1,307,907 $ 1,452,081 $ 1,309,481 $ 1,384,690
Taxation from other governments 4,389 10,660 4,228 7,374
Amounts received or receivable 1,312,296 1,462,741 1,313,709 1,392,064
Requisition 1,312,296 1,462,741 1,313,709 1,392,064
$ $ $ - $
Welch
CORPORATION OF THE MUNICIP ALI TY OF TWEED
SCHEDULE 1 - C ONSOLID ATED STATEME NT OF T ANGIBLE CAPITAL ASSETS
YEAR ENDED DECEMBER 31, 2013
COST
Balance, beginn ing of year
Addition s during the year
D isposals du ring the year
Balance, end of year
ACCUMULA TED AMORTIZATION
Balan ce, beginning of year
Amortization during the year
Accumulated amortization on disposals
Balance, en d of year
Net Book Valu e of Tangible Capital A ssets
COST
Balance, begin ning of ye ar
Addition s du ring the year
Disposals durin g the year
Bala nce, end of year
ACCU MUL ATED AMORTIZ ATION
Balance, beginnin g of year
Amo rtiz ation du ring the year
Accumu lated amortization on disposals
Balance, end of year
Net Book Valu e of Tangible C apital Assets
GENE RAL
INFRASTRUCTURE
TOTALS
Underground
a nd Other
Land Building Other Roads Networks
$ 1,693,836 $ 3,870,642 $ 2,482 ,471 $ 1,474,623 $ 204,957 $ 3,698 $ 2,693,427 $ 19 ,318,701 $ 4,843,007 $ 8 ,193,327 $ 44,778,689
11,562 96,429 325,725 65,907 69,739 15,921 505,794 13,226 68,573 1,172,876
25,996 - - 12 ,406 3,698 - 217 ,000 - 259,100
1,679 ,402 3 ,967,071 2 ,482,471 1,800.348 258,458 69,739 2,709,348 19.607,495 4.856 233 8,261,900 45,692,465
Vehicles Equipment
Assets
Under
Constr uction
Plant and
Facilities
Bridges and
Other 2013
Structures
73,398 989,337 1,362,827 648 ,424 102,136 1 ,129,413 11,486,244 993,038 1,891,975 18,676,792
27,486 99,246 161,656 123,693 33,466 91,373 1,063,966 92,883 129,411 1,823,180
- - 10,983 - 217,000 227.983
100.884 1,088, 583 1.524,483
772,117 124 ,619 - 1.220 ,786 12,333,210 1,085,921 2,021,386 20 ,271.989
,$ 1.578,518 $ 2,878,488 $ 957,988 $ 1,028,231 $ 133,839 $ 69,739 $ 1,488,562 $ 7,274,285 $ 3,770,312 $ 6 ,240,514 $ 25 ,420,476
YEAR ENDED DECEMBER 31, 2012
GENERAL
Land
Building Vehicles Equipment Other
Assets
Under
Construction
I NF RASTRUCTURE
TOTALS
Plant and
Facilities
Roads
U ndergro und
and Other
Networks
Bridges and
Other 2012
Structures
$ 1,685,098 $ 3,826,449 $ 2,420,986 $ 1,397,567 $ 225,055 $ 79,927 $ 2,651,737 $ 18,883,639 $ 4,748,641 $ 8 ,187,401 S 44,106,500
8,738 44,193 76,875 125,786 8 ,744 3 ,698 41,690 913,284 94,366 5,926 1,323,300
- 15, 390 48,730 28,842 79.927 478,222 651,111
1693, 836 3,870,642 2,482,471 1,474.623 204,957 3,698 2,693;427 19,318,701 4,843,007 8193,327 44,778,689
48, 720 896,370 1,190,070 604,797 109,813 - 1,039,632 10,892,350 903,632 1,770,594 17,455,978
24,678 92,967 188,147 92,357 21,165 89,781 1,072,116 89,406 121,381 1,791,998
- - 15,390 48,730 28,842 - 478,222 - 571,184
73, 398 989,337 1,362,827 648,424 102,136 1,129,413 11,486,244 993.038 1 ,891,975 18,676.792
$ 1.620.438 $ 2,881,305 $ 1, 119.644 $ 826, 199 $ 102,821 $ 3,698 S 1,564,014 $ 7,832,457 $ 3 ,849,969 $ 6.301 ,352 $ 26 ,101 ,897
(See ac co mp anying notes)
. ..118
CORPO RATIO N OF THE M UNICIPALITY OF TWEED
SCHED ULE 2 - C ONSOLIDATED SCHEDULE OF C ONTI NUITY OF RESE RVES AND RESER VE FUNDS
DECEMBER 31, 2013
Revenue Contributions Transfers
Balance, Interest on From Operations Total To Operatio ns To Capital Total Balance, end of
begi nning of year Reserve F und s Acquisitio ns year
R eserve Funds
Waste site reclamation $ 781,169 $ 28,664 $ 128,904 $ 157,568 $ 137,000 S $ 137,000 $ 801,737
Roads 82,342 1,610 5,396 7,006 89,348
Village in frastructu re 164 ,056 1 ,731 1 ,731 165,787
1,027,567 32,005 134,300 166 ,305 137 ,000 137,000 1,056,872
Reserves
Workin g capital 358,039 - 57,600 57,600 300,439
Con tingencies 150,000 - - 150,000
Water an d sewer 520,648 154,727 154,727 675,375
Mu nicipal building expenditure 36,770 - 2,755 2,755 34,015
Capital acquisitio ns - Fire 89,925 75,000 75,000 164,925
Capital acquisitions - Arena 21,300 - 5,000 5,000 26,300
Arena -Building 3,000 6,800 6,800 9,800
Fire - Overage wages - 15,000 15,000 - 15 ,000
Fire - Equ ipment maintenance 20, 000 - - - 20,000
Fire - Fire hall - Bay for EMS 18,700 18,700 18,700
Heritage 50,000 - 50,000
Hamlets 32,680 3,107 3,107 13,780 13,780 22,007
Parks 17,394 14,030 14,030 2,280 11,570 13,850 17,574
Public works - Off overage 15,000 - - - - 15,000
Pu blic works - Equipment 285, 989 100,000 100,000 176,730 176,730 209,259
Public works - Win ter mainten ance 74,300 53,700 53,700 105,700 105,700 22,300
Public works - Roa ds and streets 244,650 100,000 100 ,000 - 94,650 94,650 250 ,000
Total
1,919, 695
546,064 546,064 124,515 340,550 465,065 2,000,694
$ 2.947,262 $ 32,005 $ 680,364 $ 712 ,369 $ 261,515 $ 340,550 $ 602.065 $ 3,057,566
(See accompanyin g n otes)
.719
C ORPORATIO N OF THE M UNICIPALITY OF TW EED
SCH EDULE 3 - C ONSOLIDATE D SCHEDULE OF SEGMENT DISCLOSURE STATEMENT OF OPERATIONS
Y EA R E NDED DECEMBE R 31, 2013
BU DGET
GENERAL PR OTECTION TRANSPORTATION E NVIRONMENTAL RECREATION AN D PLA NNIN G TWEED PUBLIC ELIMIN ATIONS CONSOLI DATE D
GOVE RNME NT SER VICES SE RVICES SERVICES CULTUR AL DEV ELOPMEN T LIBRARY BOAR D
SERVICES
REVENUES
Municipal taxation $ (519,531) $ 1,135,532 $ 1,942,710 $ 53,480 $ 413,703 $ 129,395 $ $ - $ 3,155,289
Tax ation from other governments 18,500 - - 18,500
Gov ern ment Transfers
Gov ernment of Canada - - - 1,200 14,843 - 16,043
Provin ce of O ntario 1,379,935 162,165 - 10,000 5,000 10 ,000 16,476 - 1 ,583,576
Other Municipalities - - - - 115,041 (115,041) -
User charges 13,700 9,000 4,000 660,156 128,050 3,630 - 818,536
Investme nt in come 10,000 - - - 4,177 50 - 14,227
Penalty an d in terest on tax es 128,000 - - - 128,000
D onation s - - - - - 5,750 5,750
Miscellaneous 39, 600 10 ,000 - 10,000 4 ,800 /1560 75,960
1,070, 204 723 .636 557,953 148,372 167,350 (115 041) 5 ,815,881
1 ,316 ,697 1,946.710
CUR RENT - E XPENDITURES
Salaries, wages and employee ben efits 448,850 151,877 729,690 203,480 234,790 55,595 102,200 1,926,482
In terest on long-term debt - - - - - 4,177 - - 4,177
Materials an d su pplies 248,620 97,855 1 ,063,520 362,650 208,122 81,400 37,607 2 ,099,774
Contr acted services and gen eral services - 812,000 153,500 326 ,850 - 13 ,543 1,305,893
Rents and financial expen ses 52,300 - - 7,200 - - 59,500
Ex te rnal transfers - 46,400 - - 115,041 - (115,041) 46,400
Amor tization 31,761 71, 820 1,363 ,880 206,039 103.378 46,302 1,823,180
781,531 1,179,952 3,310,590 1,099,019 661.331 148,372 199 .652 (315.041) 7.265,406
288, 673 $ 136, 745 $ (1,363,880) $ (375,383) $ (103 ,378) $ $ (32,302) $ $ (1,449,525)
(See accompanying notes)
../20
C ORPORATIO N OF THE MUNICIPA LITY OF TWEED
SCHEDULE 3 - C ONSOLID ATE D SCHEDULE OF SEGMENT DISCLOSUR E STATEMEN T OF OPERATIO NS
YE AR ENDE D DECEMBER 31, 2013
ACTUAL
GENERAL P ROTECTION TRANSPORTATI ON ENVIRONME NTAL RECREATIO N AND PLA NNI NG TWEED P UBLIC ELIMINATIONS CO NSOLIDA TED
GOVER NM ENT SERVICES SERVICES SERVICES C ULTURA L DEVELOPMENT LIBRARY BOARD
SERVICES
R EV ENU ES
Municipal taxation 8 (530,626) $ 1,135 ,532 $
Tax ation fro m other govern ments 20 ,407
Govern men t Transfers
Gove rnment of Canada - -
Pro vin ce of O nta rio 1,423,658 162 ,165
O ther Mu nicipalities - -
U ser charges 20,677 13,866
Investment income 18,836
Penalty and intere st on ta xes 138,045
Don ations -
Miscellan eo us 84,427 7,270
1, 175 424 1 ,318 ,833
1 ,942 710 $
9 ,015
1,951,725
53,480 $ 413,703 $ 134,395 $ $ $ 3,149,194
20 ,407
1,200 4,115 5,315
4,083 4,240 33 ,008 1,627 ,154
- - - 115,041 (115,041)
647,027 132,785 - 3,506 - 826 ,876
- 4 ,155 6 22,997
- 138,045
- - 10,984 10,984
7 ,826 7,400 6,284 113,207
704 ,590 559 ,754
145,950 172,944
(115,041) 5,914 ,179
CURR ENT - EXPEND ITURES
Salaries, wages and employee benefits 486,236 160,789 706,064 195,311 234,746 36,460 105,609 1,925,215
Interest on long-term debt _ - - - - 4,155 - 4,155
Materials and su pplies 288, 465 92,804 1,048,855 259 ,010 223,796 52,372 39,043 2,004,345
Co ntracted services and general services 760,278 164,149 330,054 - - 5,476 1,259,957
R ents and financia l expenses 51,502 - - 7 ,200 58,702
E xternal transfers 49,404 - - 115,041 _ (115,041) 49,404
Amorsza tion 31, 761 71.820 1,363,880 206 ,039 103,378 46,302 - 1 ,823 ,180 .
857, 964 1,135, 095 3,282,948 990,414 676,961 100,187' 196,430 (115,041) 7,124,958
$ 317,460 $ 183,738 $ (1, 331, 223) $ (285,824) $ (117 ,207) $ 45,763 $ (23,486) $ - $ (1210,779)
(See accompanying notes)
121
CORPOR ATION OF THE MUNICIPALIT Y OF TWEED
SCHEDULE 3 - CONSOLID ATED S CHEDULE OF SEGMENT DISCL OSURE STATEMENT OF OPERATI ONS
YE AR ENDED DECEMBER 31, 2012
ACT UAL
GENERAL PROTECTIO N TRANSPORTATION ENVIR ONMENT AL RECREATION AND PLANNING TWEED PUBLIC ELIMINATIO NS CO NSOLID ATED
GOVE RNME NT SERVICES SERVICES SERVIC ES CULTURAL DEVELOPMENT LIBRARY BOARD
SERVICES
REVENUES
Municipa l ta xa tion $ (533,879) $ 1 ,010 ,095 $ 1,943,710 $ 89,610 $ 968,350 $ 101,925 $ - $ $ 2,979 ,811
Taxation from other gov ern ments 18,348 - - - 18,348
Govern ment Tran sfers
Go vernment of Canada - - 3,147 17,300 20,447
Province of Ontario 1,394,800 164,300 37,000 2,760 - 26,714 1,625,574
O ther Mu nicipalities - - - - - 97,700 (97,700) -
User charges 13 ,290 9,353 12,472 660,857 133,822 - 3,721 - 833,515
In vestmen t income 13,869 - 4,558 155 18,582
Pena lty and interest on taxes 134,789 - - 134,789
D onations - - - 7,001 7,001
Miscellaneou s 88,012 10,845 36,342 4,400 7,297 - 146,896
1.329, 229 1,194 593 1,956,182 787 .467 54.4,421 110,883 159 ,888 (97 700) 5,784 ,963
CU RRENT - EXPENDITURES
Salaries, wages and employee benefits 465,172 148,068 696,895 201,122 230,067 52,192 103,091 1,896,607
Interest on long-term de bt - - - - 4,558 4,558
Materials an d su pplies 215,891 92,374 758,803 345,273 205,734 75 ,488 37,701 1,731,264
Co ntracted serv ice s an d gene ral service s - 808,916 167 ,891 322,435 - 11,457 1,310 ,699
Re nts and financ ial expenses 49,176 - - - - 7,200 - 56,376
External transfers - 46,766 - - 97,700 - (97,700) 46,766
A mortization 26, 318 69,256 1,361,902 204,086 84,076 46,360 - 1,791,998
756,557 1.165.380 2,985 ,491 1 ,072 ,916 617,577 139,438 198 ,609 (97,700) 6,838,268
$ 372,672 $ 29. 213 $ (1,029,309) $ (285,449) $ (73,156) $ [28,555) $ (38,721) $ S (1,053,305)
(See accompanying no tes)
.../22
CORPORATION OF THE MUNICIPALIT Y OF TWEED
SCHE DULE 4 - CONSOLIDATED SCHED ULE OF RE CON CILIATION OF FINANCIAL PLA N TO THE BUDGET
YEAR ENDE D DECEMBER 31, 2013
OPE RATI NG CAPIT AL RESER VES AND TANGIBLE CAPITAL TW EED PU BLI C ELIMINATIONS PS AB BUDGET
BUDGET B UDGET RESERVE FUN DS ASSET LI BRARY BOARD
ADJUSTMEN TS
REVENUES
Municipal tax ation $ 3 ,155,289 $
Tax atio n from other governments 18,500
Government Transfers
Govern men t of Canada 1,200
Pro vince of Ontario 1,567 ,100
Other Municipalities -
User fe es and sale of goods and services 787,941 26,965
Investment inc ome 14,177
Pena lty and interest on taxes 128,000
Don ations -
Miscellaneous 64,400
5 736,607 26 ,965
$ S $ 3,155,289
18,500
14,843 16,043
16 ,476 - 1,583,576
115,041 (115,041)
3,630 818 ,536
50 14 ,227
128,000
5,750 5,750
11,560 75,960
167,350 (115,041) 5,815,881
EXPENDITURES
Cu rrent
General government 749,770 - - 31,761 781,531
Pro tectio n services 1,108,132 - - 71,820 - 1,179 ,952
Tran sportation services 1,946,710 - 1 ,363 ,880 3,310,590
Env iro nmental servic es 842,980 50,000 - 206,039 - - 1,099,019
Recreation al an d cu ltural serv ices 552,953 5,000 103,378 199 ,652 (115,041) 745,942
Plann ing and dev elopmen t 138,372 10,000 - _ 148,372
Capital
General government 28,000 (28,000)
Protection services - 58,000 - (58,000)
Tran sportation services - 583,000 - (583,000)
Env ironmental services - 166,100 (166,100)
Recreational an d cultural services - 87,594 (101 594) 14 ,000 -
NET REVE NUE S (EX PEN DITUR ES)
O THER INC OME AN D EXPEN SES RELATED TO
CAPITAL
Municipal tax ation
Gov ernment tran sfers
Canada
Ontario
Other
User charges - water an d sewe r
Parkland
F INANCING AND T RAN SFER S
De bt repayme nt
Benefiting landown ers principal repayments
Transfers from (to) other fun ds
i%NUA L SURPLU S (DEFIC IT)
5,338, 917 987,694 840 ,184 213.652 (115,041) '7,265,406
397, 690 (960,729) (840,184) (46,302) - (1,449,525)
- 435,511 - - 435,511
6,666 - 6,666
129,334 - 129 ,334
23 578 - - - 23,578
595, 089 - 595 089
(7,123) 7,123 - -
7,123 - - (7,123) -
(397,690) 355,640 32, 050 - -
(397,690) 365.640 32, 050 - - -
$ $ 32.050 5 (840,184) 5 (46,302) $ - $ (854,436)
(See accompanying n otes)
123
CORPORATION OF THE MUNICIPALITY OF
TWEED TRUST FUNDS
FINANCIAL STATEMENTS
December 31, 2013
Welch
elch
INDEPENDENT AUDITOR'S REPORT
To the Members of Council of the
Corporation of the Municipality of Tweed
We have audited the statement of financial position of the CORPORATION OF TIE MUNICIPALITY
OF TWEED Trust Funds as at December 31, 2013 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 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 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, 2013 in accordance with the cash receipts and
disbursements basis of accounting described in the notes to financial statements.
Belleville, Ontario CHARTERED ACCOUNTANTS
June 24, 2014 LICENSED PUBLIC ACCOUNTANTS
Welch ELF - Chartered Accountants
525 Dundas Street East, Be11evilte, Ontario i(BN 1G4
T: 613 966 2844 F: 613 966 2206 W: waww.welchlip.com
An Independent Member of BKR International
26
Belleville Canapbellford I Cornwall Gatineau I N., anee Ottawa I Pembroke I Picto❑ I Renfrew I Trenton
CORPORATION OF THE MUNICIPALITY OF TWEED
TRUST FUNDS
STATEMENT OF FINANCIAL POSITION
DECEMBER 31, 2013
ASSETS
Ontario Santa
Home Claus
Recreation Renewal Parade
Associations Plan Fund Total
Cash $ - $ 488 $ 2,108 $ 2,596
Investments 9,839 - - 9,839
Loans receivable - 936 - 936
$ 9,839 $ 1,424 $ 2,108 $ 13,371
FUND BALANCE
Fund balances $ 9,839 $ 1,424 $ 2,108 $ 13,371
Approved by Council:
.'1.,rtk, di/1)04-
Mayor
:✓'�Gt ,wtr CAOICIerk
/
(See accompanying notes)
27
Welch
ti
CORPORATION OF THE MUNICIPALITY OF TWEED
TRUST FUNDS
STATEMENT OF CONTINUITY
YEAR ENDED DECEMBER 31, 2013
Ontario Santa
Home Claus
Recreation Renewal Parade
Associations Plan Fund
Total
FUND BALANCES, beginning of year $ 9,736 $ 1,394 $ 1,908 $ 13,038
RECEIPTS
Donations - - 1,500 1,500
Interest earned 103 30 - 133
EXPENDITURES
Parade expenses
103 30 1,500 1,633
1,300 1,300
1,300 1,300
FUND BALANCES, end of year $ 9,839 $ 1,424 $ 2,108 $ 13,371
(See accompanying notes)
28
We ch
CORPORATION OF THE MUNICIPALITY OF TWEED
TRUST FUNDS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2013
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, 2013 consist of repayable loans
totalling $936 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.
29
Welch