Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My Public Portal
About
2015 Financial Statements
CORPORATION OF THE MUNICIPALITY OF TWEED CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2015 Welch LLP An Independent Member of BKR International CORPORATION OF THE MUNICIPALITY OF TWEED FINANCIAL STATEMENTS DECEMBER 31, 2015 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 LLPW An Independent Member ofBKR International The Corporation of the MUNICIPALITY OF TWEED 255 Metcalf St., Postal Bag 729 Tweed, ON KOK 3J0 Tel.: (613) 478-2535 Fax: (613) 478-6457 Email: info@atwp.tweed,on.ca Website: www.hveed.ca Management's Responsibility for the Consolidated Financial Statements Jo -Anne Albert MAYOR Patricia L. Bergeron, A.M.C.T. CAO/CLERK The consolidated financial statements of the Corporation of the Municipality of Tweed are the responsibility of management and have been approved by Council. The consolidated financial statements have been prepared in compliance with Canadian public sector accounting standards for local governments established by the Public Sector Accounting Board of the Chartered Professional Accountants of Canada. A summary of the significant accounting policies are described in Note 1 to the consolidated financial statements. The preparation of consolidated financial statements necessarily involves the use of estimates based on management's judgement, particularly when transactions affecting the current accounting period cannot be finalized with certainty until future periods. The Corporation's management maintains a system of internal controls designed to provide reasonable assurance that assets are safeguarded, transactions are properly authorized and recorded in compliance with legislative and regulatory requirements, and reliable financial information is available on a timely basis for preparation of the consolidated financial statements. These systems are monitored and evaluated by management. Municipal Council is responsible for ensuring that management fulfills its responsibilities for financial reporting. Council, through the Audit Committee, reviews the Corporation's consolidated financial statements and discusses any significant financial reporting or internal control matters prior to Council approval of the consolidated financial statements. The consolidated financial statements have been audited by Welch LLP, independent external auditors appointed by the Corporation, in accordance with Canadian generally accepted auditing standards. The accompanying Independent Auditor's Report outlines their responsibilities, the scope of their examination and their opinion on the Corporation's consolidated financial statements. Jo- e 0ert Betty GalEagher M or Acting CAO/Clerk Treasurer INDEPENDENT AUDITOR'S REPORT To the Members of Council, of the CORPORATION OF THE MUNICIPALITY OF TWEED Welch LLPQ 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, 2015 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, 2015 and the results of its operations and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Belleville, Ontario CHARTERED PROFESSIONAL ACCOUNTANTS September 27, 2016 LICENSED PUBLIC ACCOUNTANTS .13 Welch LLP - Chartered Professional Accountants 525 Dundas Street East, Belleville, ON K8N 1G4 T: 613 966 2844 F: 613 966 2206 W: welchlip.coin An Independent Member of BKR International CORPORATION OF THE MUNICIPALITY OF TWEED CONSOLIDATED STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2015 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 (See accompanying notes) 2015 2014 $ 4,176,140 $ 2,951,629 930,583 1,070,760 272,296 900,554 46,569 54,572 5,425,588 4,977,515 469,966 304,830 658,000 646,000 890,126 930,040 46,569 54,572 2,064,661 1,935,442 3,360,927 3,042,073 26,470,888 26,830 3,011 26,500,729 $ 29,861,656 26,430,785 59,855 528 26,491,168 $ 29,533,241 ...14 Welch LLPC An Independent Member of BKR International CORPORATION OF THE MUNICIPALITY OF TWEED CONSOLIDATED STATEMENT OF OPERATIONS AND ACCUMULATED SURPLUS YEAR ENDED DECEMBER 31, 2015 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 REVENUE (EXPENDITURES) 2015 Budget (note 13) $ 2,924,172 21,960 1,794,676 982,015 23,301 136,000 92,274 5.974,398 2015 Actual $ 2,933,291 21,270 1,800,034 1,069,408 20,440 140,614 154.033 2014 Actual $ 3,258,299 22,347 1,699,423 875,100 28,705 139,666 123,692 6,139,090 6,147,232 777,072 888,792 841,565 1,355,204 1,3 81,200 1,200, 829 2,990,185 3,018,462 3,103,805 1,191,193 1,119,998 1,057,125 779,447 889,041 776,416 151,460 182.065 123,646 7,244,561 7,479,558 7,103,386 (1,270,163) (1,340,468) (956,154) OTHER INCOME AND EXPENSES RELATED TO CAPITAL Municipal taxation for capital purposes 832,903 Government transfers: Canada Ontario Donations User charges - water and sewer INTEREST EARNED ON RESERVE FUNDS ANNUAL SURPLUS (DEFICIT) 281,657 328,415 1,110,586 ACCUMULATED SURPLUS, beginning of year 29,533,241 29,533,241 28,422,655 ACCUMULATED SURPLUS, end of year $ 29,8141898 $ 29,861,656 $ 29,533,241 832,903 435,702 468,917 452,061 387,007 1,083,818 250,000 358,135 - 132,991 1,551,820 1,643,099 2,039,518 (See accompanying notes) 25,784 27,222 .15 Welch LLPv An Independent Member of BILK International CORPORATION OF THE MUNICIPALITY OF TWEED CONSOLIDATED STATEMENT OF CHANGE IN NET FINANCIAL ASSETS YEAR ENDED DECEMBER 31, 2015 ANNUAL SURPLUS (DEFICIT) Amortization of tangible capital assets Acquisition of tangible capital assets Changes in assets under construction Change in inventories of supplies Change in prepaid expense CHANGE IN NET ASSETS NET FINANCIAL ASSETS, beginning of year NET FINANCIAL ASSETS, end of year 2015 2015 Budget Actual (note 13) $ 281,657 $ 1,814,807 (2,001,250) 328,415 $ 1,814,807 (1,818,289) (36,621) 33,025 (2,483) 2014 Actual 1,110,586 1,708,882 (2,788,930) 69,739 (34,479) 176 95,214 318,854 65,974 3,042,073 3,042,073 2,976.099 $ 3,137,287 $ 3,360,927 $ 3,042,073 (See accompanying notes) .16 Welch LLP® An Independent Member of BKR International CORPORATION OF THE MUNICIPALITY OF TWEED CONSOLIDATED STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2015 OPERATING Annual surplus (deficit) Non -cash charges to operations: Amortization 1,814,807 1,708,882 Waste disposal closure 12,000 34,000 2,155,222 2,853,468 2015 2014 $ 328,415 $ 1,110,586 Changes in non -cash charges to operations (net change): Taxes receivable 140,177 (22,765) Accounts receivable 628,258 (568,976) Inventory 33,025 (34,479) Prepaid expenses (2,483) 176 Long-term receivable 8,003 7,549 Accounts payable and accrued liabilities 165,136 115,347 Deferred revenue (39,914) (417,012) 3,087,424 1,933,308 CAPITAL Acquisition of tangible capital assets (1,854,9!0) (2,719,191) CASH FLOWS FROM FINANCING ACTIVITIES Repayment of long-term debt (8,003) (7,549) NET CHANGE IN CASH AND CASH EQUIVALENTS 1,224,511 (793,432) CASH AND CASH EQUIVALENTS, beginning of year 2,951,629 3,745,061 CASH AND CASH EQUIVALENTS, end of year 4,176,140 $ 2951 629 (See accompanying notes) ..17 Welch LLD® An Independent Member of BKR International CORPORATION OF THE MUNICIPALITY OF TWEED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015 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. ...18 Welch LLP° An Independent Member of f3KR International CORPORATION OF THE MUNICIPALITY OF TWEED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015 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. .19 Welch LLe An Independent Member of BKR International CORPORATION OF THE MUNICIPALITY OF TWEED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015 1. SIGNIFICANT ACCOUNTING POLICIES (continued) Contaminated Sites Liability Contaminated sites are a result of contamination being introduced into air, soil, water or sediment of a chemical, organic or radioactive material or live organism that exceeds an environmental standard. The liability is recorded net of any expected recoveries. A liability for remediation of a contaminated site is recognized when, as at the financial reporting date, all of the following criteria are met for a site or a portion of a site which is no longer in productive use: i) an environmental standard exists; ii) contamination exceeds environmental standard; iii) the Corporation is directly responsible or accepts responsibility: and iv) a reasonable estimate of the amount can be made. 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. 110 Welch LLP" An Independent Member of BIM International CORPORATION OF THE MUNICIPALITY OF TWEED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015 2. ADOPTION OF NEW ACCOUNTING STANDARDS The Corporation adopted Public Sector Accounting Board Standard PS3260 Liability for Contaminated Sites effective January 1, 2015. Under PS 3260, contaminated sits are defined as the result of contamination being introduced in air, soil, water, or sediment of a chemical, organic, or radioactive material or live organism that exceeds an environmental standard. This Standard relates to sites that are not in productive use and sites in productive use where an unexpected event resulted in contamination. The Corporation adopted this standard on a retroactive basis and there were no adjustments as a result of the adoption of this standard. 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. 4. CASH The balance of cash consists of the following: Market Value 2015 2014 Undesignated cash Petty cash and chequing accounts $ 2,650,950 $ 2,642,326 $ 1,403,491 Guaranteed Investment Certificates 105,358 105,358 95,736 Mutual and segregated funds 574,538 599,685 584,884 Tweed Public Library Board 24,994 24,994 28,857 3,355,840 3,372,363 2,112,968 Designated cash Federal gas tax agreement - chequing account 745,780 745,780 784,386 Planning Act - Parkland - chequing account 57,997 57,997 54,275 803.777 803,777 838,661 $ 4,159.617 $ 4,176,140 $ 2,951,629 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. Welch LLP An Independent Member of 131<R International CORPORATION OF THE MUNICIPALITY OF TWEED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015 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 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. 7. ACCRUED LIABILITY - WASTE DISPOSAL CLOSURE 2015 2014 46,569 $ 54,572 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 $658,000 based on the present value of closure and post -closure costs estimated at $1,148,464 The Marlbank Road Waste Disposal site has an estimated remaining capacity of 48% and is expected to provide capacity for 21 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 41 years based on current waste generation rates. A reserve fund of $1,039,312 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. ...112 Welch LLPe An Independent Member of BKR International CORPORATION OF THE MUNICIPALITY OF TWEED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015 8. DEFERRED REVENUE The balance of deferred revenue consists of the following: Balance December 31, 2014 Additions Obligatory Reserve Funds: Federal gas tax Parkland Other Government transfers Miscellaneous Tweed Public Library 9. LONG-TERM DEBT $ 784,386 54,275 27,453 63,926 $ 930.040. $ 357,385 3,722 42,133 29,864 3,733 $ 436,837 The balance of long-term debt consists of the following: Balance Transferred to December 31, income 2015 $ 395,991 $ 745,780 57,997 32,280 37,306 48,480 45,310 3,733 476,751 $ 890,126 2015 2014 Debentures. $ 46,569 $ 54,572 Outstanding debentures of $46,569 (2014 - $54,572) are recoverable through special charges levied directly on ratepayers, Outstanding debentures have a maturity date of December 31, 2015 October 1, 2021, bearing interest at 6%. Principal repayments over the next five years are estimated to be as follows: 2016 2017 2018 2019 2020 10. ACCUMULATED SURPLUS The accumulated surplus position is comprised of the following: $ 7,124 7,552 8,005 8,485 8,994 2015 2014 Equity in tangible capital assets $ 26,470,888 $ 26,430,785 Reserves and reserve funds - schedule 2 3,791,489 3,281,547 Unfunded capital projects (68,828) - Amounts to be recovered Landfill closure and post -closure costs Unrestricted surplus Municipality of Tweed 306,810 450,781 Municipality of Tweed Public Library Board 19,297 16,128 $ 29,861,656 $ 29,533,241 (658,000) (646,000) . .113 Welch LLP An Independent Member of BKR International CORPORATION OF THE MUNICIPALITY OF TWEED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015 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 (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 CAOJCIerk 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 UP' An Independent Member of BKR International CORPORATION OF THE MUNICIPALITY OF TWEED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015 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% (2014 - 9.0%) for earnings up to the annual maximum pensionable earnings of $53,600 (2014 - $52,500) and at a rate of 14.6% (2014 - 14.6%) 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 9.2% (2014 - 9.3%) for earnings up to the annual maximum pensionable earnings of $53,600 (2014 - $52,500) and at a rate of 15.8% (20 14 - 15.9%) for earnings greater than the annual maximum pensionable earnings. The amount contributed to OMERS for 2015 was $89,344 (2014 - $90,980) 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, 2015 indicated a deficit of $5,259,000,000 (2014 - $5,307,000,000) 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 in the consolidated financial statements. Welch LLI? An Independent Member or BIM International CORPORATION OF THE MUNICIPALITY OF TWEED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015 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. 15. COMMITMENTS The Corporation has contracts committing it to payments in future years. The following agreements existed at December 31, 2015: An agreement with the Province of Ontario for policing services. Costs will be charged on the basis of services used. Base charges for the 2015 year were $963,471 An agreement with David Moore & Son for the collection of household waste to July 31, 2015. Base charges for the 2015 year were $33,540. An agreement with Quinte Waste Solutions for the collection of recycling. Base charges for the 2015 year were $72,403. 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 2015 year were $250,220. Agreements with Larry Palmateer for winter road maintenance to 2015. ...116 Welch LLP° An Independent Member of BKR International CORPORATION OF THE MUNICIPALITY OF TWEED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015 16. 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: 2015 2014 School School Boards County Boards County Taxation Taxation from other governments $ 1,312,632 $ 1,537,208 $ 1,303,246 $ 1,498,619 5,422 12,452 4,806 9,166 Amounts received or receivable 1,318,054 1,549,660 1,308,052 1,507,785 Requisition 1,318,054 1,549,660 1,308,052 1,507,785 $ - $ - $ - $ 17. COMPARATIVE FIGURES Certain comparative figures for 2014 have been reclassified to conform to the financial statement presentation adopted for 2015. ...117 Welch LLP" An Independent Member of BKR International CORPO RATIO N OF THE NMUNICIP ALITY OF TWEED SCHE DU LE 1- CO NS OLIDATE D STATEMENT OF TA NGIBLE CAPITAL ASSETS YEAR EN DED DECEMBER 31, 2015 An In dependent Member of BKR Internation al COST Balance, beginnin g of year Addition s du ring the yea r Disposals during the year Balance, en d of year ACCUMULATED AMO RTIZATION Balan ce, beginning of year Amortization during the year A ccumulated amortization on disposals Balan ce, end of year GE NERAL Land Building Vehicles Equipment $ 1,684,402 $ 3 ,998,780 $ 2,694,096 456,963 30,784 242,848 Assets Under Plant and Other Construction Facilities $ 1,088,358 $ 259,678 $ - 156 ,744 12,327 36,621 63,271 9,908 - $ 2,870,631 INFRASTRUCTURE Undergrou nd a nd Other Roads Networks $ 20,592,049 $ 5,792,776 903,746 14,877 TOTALS Bridges a nd Other 2015 Struct ures $ 9,310,487 $ 48,291,257 1,854,910 21.177 94,356 2.141.365 4,029,564 2 ,936,944 1 ,181,831 262 ,097 36.621 2.870,631 21 ,495.795 5,807.653 9 ,289310 50.051,811 127,516 1,187,542 1,717,035 560,224 139,412 70,618 99,201 182,187 83,463 22,885 63.271 9,908 198.134 1,286.743 1,899.222 580,416 152.389 N et Book Value of Tangible Capital Assets $ 1.943 231 $ 2.742.821 COST Balan ce, beginning of year Additions during the year D isposals during the year Balance, end of year ACC UMULA TED AMORT IZATION Balan ce, beginn ing of year Amortiz ation during the year Accumulated amortization on disposals Balan ce, end of year Net Book Value of Tangible Capital A ssets Land $ 1037 722. 1,322,911 13,163,217 1,472,963 2 ,169,652 21,860,472 102,125 989.016 116,312 149,000 1,814,807 _ 21177 94.356 1.425,036 14,152 233 1.589.275 2.297.475 23,580,923 $ 601.415 $ 109.708 $ 36.621 $ 1,445.595 $ 7 .343,562 $ 4.218.378 $ 6.991.835 $ 26,470.888 YEAR ENDE D DECEMBER 31, 2014 GE NERAL . Assets Under Plant and Building Vehicles Equipment Other Construction Facilities INFRAST RUCTURE TOTALS Underground and Other Roads Networks Bridges and Other Structures 2014 $ 1,679,402 $ 3,967,071 $ 2,694,096 $ 1,037 ,897 $ 258,458 $ 69,739 $ 2,709,348 $ 19,607,495 $ 5,407,059 $ 8,261,900 $ 45,692,465 5,000 31,709 - 50,461 11.851 - 161,283 1,092,554 385 ,717 1,050,355 2,788,930 _ - 10,631 69 ,739 - 108.000 1 ,768 190 ,138 1. 684.402 3.998.780 2, 694.096 1,088.358 259.678 2.870.631 20.592 .049 5 .792 .776 9.310.487 48291,257 100,884 1. 088,583 1,545,645 485,747 124,619 1,220,786 12,333,210 1,351,128 2,021,386 20,271 ,988 26,632 98,959 171,390 74,477 25,424 102,125 938,007 121 ,835 150,034 1,708,883 - - 10.631 - - 108.000 1.768 120 ,399 127,516 1.187.542 1.717,035 560, 224 139,412 - 1.322 ,911 13.163.217 1,472 .963 2.169,652 21.860.472 1.556.886 $ 2.811238 $ 977, 061 $ 528.134 $ 120.266 5 _ - 5 1.547.720 $ 7.428,832 $ 4319 .813 $ 7.140 .835 $ 26.430.785 (See a ccompan ying n otes) ..118 CO RPORATIO N OF THE MUNICIPALITY OF TWEED SCHED ULE 2 - CO NSOLIDATED SCHEDULE OF CO NTI NUITY OF RESERVES AND RESER VE FUNDS DECEMBER 31, 2015 Re ven ue Contributions Transfers Bala nce, begi nning of year Interest on From Operations From Capit al Total To Operatio ns To Capital Total Balance, end of Reserve Funds Acquisitions year Reserve Fun ds Waste site reclamation $ 895 ,104 $ 14,747 $ 213,755 S S 228,502 $ 70,450 $ 13,844 $ 84,294 $ 1,039,312 Roads 95,736 9,622 9.622 105,358 Village infrastructure 167,516 1,415 1.415 36 .621 36 .621 132 ,310 1.158,356 25.784 213.755 239.539 70,450 50.465 120 ,915 1.276.980 R eserv es Working capital Con tin gencies Water and sewer Municipal building expenditure Capital acquisitions - Fire Capital acquisitions - Arena Commun ity improvement plan Arena - Building Fire - Overage wages Fire - Equipment main tenance Fire - Fire hall - Bay for EMS Heritage Hamlets Parks Public wo rks - O/T overage Pu blic works - Equipmen t Public works - Equipment Contingency Public works - Win ter maintenan ce Public works - Bridges 207,665 150,000 434,025 63,015 277,925 31,300 9,800 12,560 20,000 103,700 50,000 26,328 30,574 15,000 329,259 1,820 10,220 350,000 2,123.191 Total $ 3.281.547 S ['URN auapu ada pu[ ud Te uop eu aalui air j 22,584 15,002 37,586 18,356 18,356 226,895 - - 150,000 110,391 - 110 ,391 - 544 ,416 5,000 20,000 25,000 15,020 15,020 72,995 80,000 12,673 92,673 38,240 38 ,240 332,358 5,000 - 5,000 - 14,100 14,100 22,200 5,000 5,000 5,000 - 9,800 2,440 - 2,440 15,000 _ - _ 20,000 12,239 12,239 91,461 _ - - 50,000 24,000 - 24,000 19,830 19,830 30,498 5,000 156,391 161,391 - 22 ,838 ?2,838 169,127 _ - - - 15,000 100,000 100,000 262,500 262,500 166,759 13,180 13,180 - 15,000 117,780 117,780 - - 128,000 100,000 100 ,000 450,000 590.375 204.066 794.441 25. 784 $ 804,130 $ 38.186 364.937 403.123 2.514.509 204.066 $ 1 .033.980 $ 108,636 $ 415 ,402 $ 524,038 $ 3.791 .489 (See a ccompanyin g notes) .. 119 CORPO RATION OF THE MU NICIPALITY OF TWEED SC HEDULE 3 - CONSOLIDATED SCHEDULE OF SEGMENT DISCL OSU RE STATEMENT OF OPE RATIONS Y EAR ENDED DECEMBER 31, 2015 BUDGET GENERAL PROTECTION TRANSPORTATION ENVIRON MENT AL RECREATION AND PL ANNING TWEED PUBLIC ELIMINATIONS CONSOLI DATED GOVERNMENT SERVICES SER VICES SERVICES CULTUR AL DEVELOP MENT LIBR ARY BOARD SERVICES R EVENU ES Mu nicipal taxation $ 2,785,712 5 5 $ - $ $ 138 ,460 $ 5 $ 2 ,924,172 Taxatio n fro m other governments 21,960 - - - 21,960 Government Tran sfers Govern ment of Can ada - 1.200 1,200 2,400 Province of On tario 1,774,200 - 18,076 - 1.792,276 Other Mun icipalities - - - - 125,000 (125,000) User c harge s 21,000 15,000 2,000 800,400 132,000 5,615 - 982,015 Investment in come 20,000 - 3,300 1 23,301 Pen alty an d interest on tax es 136,000 - - 136,000 Don ations - - - - 5,250 5,250 Miscellaneous 44.500 11.760 12.000 _ 9.700 9.124 87.024 4, 803.372 26.700 2,000 806 .400 145.200 151,460 164.266 (125.000) 5.974.398 CUR RENT -EXPENDITURES Sala rie s, wages and employee ben efits 431,550 162,640 733 ,300 213,790 210,890 67,310 106,221 1,925,701 Interest on long-term debt - - - - 3,300 - 3.300 Ma teria ls an d supplies 272, 816 109,050 795,545 391,878 219,940 72,450 56,345 1 ,918,024 Contracted services and general services - 968,249 145 ,000 359,000 - - 1,472,249 Rents and financial ex penses 50,500 - - 8,400 58,900 External transfers - 51.580 - 125,000 - (125,000) 51 ,580 Amortization 22.206 63.685 1.316.340 226.525 141,712 44339 - 1.814.807 777, 072 1.355.204 2,990,185 1.191,193 697 ,542 151.460 206 .905 (125.000) 7.244 ,561 4.026.300 $ (1.328.504) $ (2,988.1 S (384.793) $ (552.342) $ $ (42.639) $ - S (1 .270,163) An Independen t Membe r of BKR International (See a ccompanying no tes) ...120 CO RPO RATION OF THE MUNICIP ALITY OF TWEE D SCHEDULE 3 - C ONSOLIDATE D SCHEDULE OF SEGMENT DISCLOSURE STATEMEN T OF OPERATIONS YEAR ENDED DECEMBER 31, 2015 ACTUAL GENERAL PROTECTION TRANSPORTATION EN VIRONMENTAL RECREATION AND PLAN NI NG TWEED PUBLIC ELIMIN ATIONS CO NSOLIDATED GOVERNMENT SERVICES SERVICES SERVICES CULTUR AL DEVELOPMENT LIBRARY BOARD SE RVICES REVENUES Municipal taxation $ 2,933,291 $ $ $ $ $ $ 5 - $ 2,933 291 Tax ation from other go vernm ents 21 ,270 - - 21,270 G ov ernm ent Transfers Go vernment of Canada - - 1,200 • 7 ,904 9,104 Province of Ontar io 1,764 ,799 - 26,131 1,790,930 Other Municipalities - - 125,000 (125,000) User charges 20,838 11,932 10,999 881,246 138,912 - 5,481 - 1,069,408 in vestment income 17,166 - 3,274 - 20 ,440 Pena lty an d in terest on taxes 140,614 - 140,614 D onations - - - - - 6 ,378 6,378 Miscellan eo us 51350 80.733 - - 4 ,159 5,885 5.528 147,655 4.949, 328 92.665 10,999 881 ,246 144.271 9,159 176.422 (125.000) 6.139.090 CURR EN T EXPENDITURES Salaries, wages and employee benefits 474,397 135,770 746,542 215 ,907 229,387 81,827 118,578 2,002,408 Interest on lon g-term debt - - - - - 3,274 - 3,274 Materials and supplies 348,287 165.488 805,750 321,405 313,963 88 ,564 41,062 3 ,084,519 Contracted serv ices and general services - 964,683 149,830 356,161 - - 1 ,470,674 Rents an d financial expenses 43,902 - - 8,400 52,302 Extern al transfers - 51,574 - - 125,000 - - (125,000) 51,574 A mortization 22.206 63.685 1,316.340 226525 141,712 - 44339 - 1.814,807 888.792 1, 381.200 3.018,462 1.119.998 810,062 182,065 203.979 125,000) 7,479,558 $ 4.060.536 $ (1.288.535 S (3.007;163) $ (23 8752) S (665.791) $ (172.906) $ (77,557) 8 5 (1.340.468) endent Member of BKR Inte rnationa l (See a ccompan yin g notes) .121 CORPORATION OF THE MU NICIPALITY OF TWEED SCHEDULE 3 - CONSOLIDATED SCHEDULE OF SE GMENT DISCLOSURE STATEME NT OF OPERATI ONS YEAR E NDE D DECEMBER 31, 2014 ACT UAL GENER AL PROTECTION TR ANSPORTATION ENVIRONMENTAL RECREATION AND PLANNING TWEED PUBLIC ELIMINATIONS CONSOLIDATED GOVERNMENT SERVICES SERVICES SERVICES CULTU RAL DE VELOPMENT LIBRARY BOARD SERVICES REV ENUES Municipal taxation $ 3,258 299 $ $ $ S - $ $ $ - $ 3,258,299 Taxation from other governments 22,347 22,347 Gov ernmen t Tran sfers Government of Canada - - 1,200 18 ,472 19,672 Province of Ontario 1 ,656,105 2,300 1,947 19,399 - 1,679,751 Other Municipalities - 115 ,041 (115,041) User charges - 30 ,623 16,535 6,075 675,459 140 ,508 - 5,900 - 875,100 Investment income 24,977 - - 3 ,727 1 28,705 Penalty and interest on taxes 139,666 - 139 ,666 Don ations - - - 7,623 7,623 Miscellan eous 81. 127 11,581 10 .644 5 ,945 6.772 116.069 5,213,144 28.116 6.075 677.759 154 .299 9.672 173.208 (I15.041) 6 ,147 .2232 CU RREN T -EX PEND ITUR ES Sa laries, wages and emplo yee be nefits 467,456 151,500 727,335 209,643 208,288 53,448 106,080 1 ,423,750 interest on lo ng -terns debt - - - 3,727 - 3,727 Materials and supplies 298,026 99, 093 957,933 293,877 272,303 59,271 42,190 2,022,693 Contracted services and gen eral services - 835,002 154,512 338,115 - - 7,210 - 1,334 ,839 Rents an d financial expenses 51,226 - - 7.200 58 ,426 Ex ternal transfers - 51,069 115,041 - - (115,041) 51,069 Amortization 24.857 64.165 1.264.025 215,490 93-749 - 46 .596 - 1,708-882 84L565 1 200.829 3,103.805 1-057 ,125 689.381 123,646 202.076 (115.041) 7,103_386 $ 4. 371.579 $ 11. 172. 713) $ 13.097.7301 5 1379.366} $ (535.082) S (113 ,974) $ (28-868) $ $ (956.154) a leuo Pe wa 1v111718 #o.tagw (See acc ompanying notes) ..122 CORPORATION OF THE M UNICIPALITY OF TW EED SCHED ULE 4 - C ONSOLIDA TED SCHE DULE OF RECO NCILIATI ON OF FINANCIAL PLAN TO THE BUD GET YEA R E NDED DECEMBER 31, 2©1S OPER ATING CAPITAL RESERVES AND TANGIBLE CAPITAL TWEED PUBLIC ELIMIN ATIONS PSAB BUDGET BUDGET BUDGET RESERVE FUNDS ASSET LIBRARY B OARD ADJUSTMENTS REVENUES Mu nicipa l tax ation $ 2,924,172 $ $ - $ - $ - $ $ 2,92-1,172 Tax ation fro m other governments 21,960 21.960 Governme nt Tra nsfers Government of Canada 1.209 - - - 1.200 2 ,400 Province of On ta rio 1,774,200 - - 18,076 - 1,792,276 Other Mun icipalities - - 125,000 (125,000) - User fees and sale of goods an d services 976,400 - 5,615 - 982 ,0 15 Investment in come 23,300 - 1 - 23,301 Penally and interest on taxes 136,000 - 136,000 D onations 5.250 5,250 Miscellaneous 77.900 9.124 87,024 5.935.132 164.266 (125.000) 5.974.398 EXPENDITUR ES Cu rrent Genet al gover nm ent 754 ,866 - 22.206 - 777,072 Protectio n services 1 ,291,519 - - 63,685 - 1,355,204 Transportation services 1,673 ,845 1,316,340 2,990 ,185 Env ironmental services 964,668 226,525 - - 1,191 ,193 Recreational and cultu ral services 555,830 141,712 206,905 (125,000) 779,447 Plann in g and dev elopment 151,460 - 151,460 An Indepen dent Member of MR Interna tional Ca pital Genet al government - 183,750 (183,750) Pro tection services - 65,000 (65,000) - Transportation services 1,286,000 (1,286,000) Env iron mental serv ices - 56,000 (56,000) Recrea tio na l and cultural services 410.500 - (410,500) 5,392.188 2.001 250 (230.782) 206.905 NET R EVENUES (EXPEND ITURES) 542.944 (2,001,250) (125.000) 7.244.561 230 ,782 (42,639) (1,270,163) O THER INCOME AND EXPENSES RELATED TO CA PITA L Municipal taxation 832,903 - - 832,903 Governmen t transfers Cana da - 468,917 - - 468,917 Ontario - - - Other Donations 250,000 250.000 L551.820 1.551.820 FINANCING AND TRA NSFERS Debt repayment Benefiting landowners principal repayments Transfers from (to) other funds AN NUAL SUR PLUS (DEFICIT ) 8,000 (8,000) (542. 944) (542.944) (8,000) 8,000 449, 430 93.514 - 449.430 93.514 - $ $ 93.514 $ 2_30.782 $ (42.639) $ - $ 281.657 (See accompan yin g notes) ./23 CORPORATION OF THE MUNICIPALITY OF TWEED TRUST FUNDS FINANCIAL STATEMENTS December 31, 2015 Welch LLPe An Independent Member of BKR International The Corporation of the MUNICIPALITY OF TWEED 255 Metcalf St., Postal Bag 729 Tweed, ON KOK 3J0 Tel.: (613) 478-2535 Fax: (613)478-6457 Email: info Er twp.tweed.on.ca Website: www.tweed.ca Management's Responsibility for the Trust Fund Financial Statements Jo -Anne Albert MAYOR Patricia L. Bergeron, A.M.C.T. CAO/CLERK The Trust Fund financial statements of the Corporation of the Municipality of Tweed are the responsibility of management and have been approved by Council. The Trust Fund financial statements have been prepared in compliance with Canadian public sector accounting standards for local governments established by the Public Sector Accounting Board of the Chartered Professional Accountants of Canada. A summary of the significant accounting policies are described in Note 1 to the financial statements. The preparation of Trust Fund financial statements necessarily involves the use of estimates based on management's judgement, particularly when transactions affecting the current accounting period cannot be finalized with certainty until future periods. The Corporation's management maintains a system of internal controls designed to provide reasonable assurance that assets are safeguarded, transactions are properly authorized and recorded in compliance with legislative and regulatory requirements, and reliable financial information is available on a timely basis for preparation of the Trust Fund financial statements. These systems are monitored and evaluated by management. Municipal Council is responsible for ensuring that management fulfills its responsibilities for financial reporting. Council, through the Audit Committee, reviews the Corporation's Trust Fund financial statements and discusses any significant financial reporting or internal control matters prior to Council approval of the Trust Fund financial statements. The Trust Fund financial statements have been audited by Welch LLP, independent external auditors appointed by the Corporation, in accordance with Canadian generally accepted auditing standards, The accompanying Independent Auditor's Report outlines their responsibilities, the scope of their examination and their opinion on the Corporation's Trust Fund financial statements. Jn{ Anne Albert Mayor Acting CAO/Clerk-Treasurer 25 Welch LLPD 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 THE MUNICIPALITY OF TWEED Trust Funds as at December 31, 2015 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, 2015 in accordance with the cash receipts and disbursements basis of accounting described in the notes to financial statements. (46 (,)&44 Belleville, Ontario CHARTERED PROFESSIONAL ACCOUNTANTS September 27, 2016 LICENSED PUBLIC ACCOUNTANTS Welch LLP - Chartered Professional Accountants 525 Dundas Street East, Belleville, ON K8N 1G4 T: 613 966 2844 F: 613 966 2206 W: welchllp,com An Independent Member of BKR International 26 CORPORATION OF THE MUNICIPALITY OF TWEED TRUST FUNDS STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2015 ASSETS Ontario Santa Home Claus Recreation Renewal Parade Associations Plan Fund Total Cash $ - $ $ 1,658 $ 1,658 Investments 9,997 - - 9,997 Loans receivable - - - Fund balances $ 9,997 $ - $ 1,658 $ 11,655 FUND BALANCE $ 9,997 $ $ 1,658 $ 11,655 (See accompanying notes) 27 Welch LLF An Independent Member of HICK International CORPORATION OF THE MUNICIPALITY OF TWEED TRUST FUNDS STATEMENT OF CONTINUITY YEAR ENDED DECEMBER 31, 2015 Ontario Santa Home Claus Recreation Renewal Parade Associations Plan Fund Total FUND BALANCES, beginning of year $ 9,918 $ 1,429 $ 1,908 $ 13,255 RECEIPTS Donations - - 1,500 1,500 Interest earned 79 2 81 79 2 1,500 1,581 EXPENDITURES Parade expenses Capital repayment to province Writeoff of uncollectible loans recoverable FUND BALANCES, end of year 495 936 1,431 1,750 1,750 495 936 1,750 3,181 $ 9,997 $ - $ 1,658 $ 11,655 (See accompanying notes) 28 Welch LLP° An Independent Member of BKR International CORPORATION OF THE MUNICIPALITY OF TWEED TRUST FUNDS NOTES TO FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015 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. Use of Estimates The preparation of financial statements in conformity with Canadian public sector accounting standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenditures during the period. Actual results could differ from those estimates. 2. ONTARIO HOZVIE RENEWAL PROGRAM All of the Ontario Home Renewal Program loans have been collected and the trust bank account has been closed, there are no remaining liens an any properties and all payments have been remitted to the province. The program was discontinued July 16, 1993 by the Ministry of Municipal Affairs and Housing and that all cash funds at the end of each year are to be returned to the Province by March 1 of the next year. 3. STATEMENT OF CASH FLOWS A statement of cash flows has not been included in these financial statements as the information is readily determinable. 29 Welch LLP° An Independent Member of BKR fnternationa]