HomeMy Public PortalAbout2020 Tweed Consolidated FSCORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2020
CORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2020
TABLE OF CONTENTS
Page
Number
MANAGEMENT REPORT
INDEPENDENT AUDITOR'S REPORT
CONSOLIDATED FINANCIAL STATEMENTS
Statement of Financial Position 1
Statement of Operations and Accumulated Surplus 2
Statement of Change in Net Financial Assets 3
Statement of Cash Flows 4
Notes to the Financial Statements 5 - 15
Schedule of Tangible Capital Assets 16
Schedules of Segment Disclosure 17 - 18
TRUST FUNDS
Independent Auditor's Report 19
Statement of Financial Position 21
Statement of Continuity 21
Notes to the Financial Statements 22
LOCAL BOARD
Tweed Public Library Board 23 - 33
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
CORPORATION OF THE MUNICIPALITY OF TWEED
For The Year Ended December 31, 2020
MANAGEMENT REPORT
Email: info@twp.tweed.on.ca
Website: www.tweed.ca
facebook.com/tweedontario
The accompanying 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 by management in accordance with Canadian
Public Sector Accounting Standards. Financial statements are not precise since they include certain
amounts based on estimates and judgements. When alternative accounting methods exist, management
has chosen those it deems most appropriate in the circumstances, in order to ensure that the financial
statements are presented fairly, in all material respects.
The Municipality maintains systems of internal accounting and administrative controls of high quality,
consistent with reasonable cost. Such systems are designed to provide reasonable assurance that the
financial information is relevant, reliable and accurate and the Municipality's assets are appropriately
accounted for and adequately safeguarded.
The Municipality's Council is responsible for ensuring that management fulfills its responsibilities for
financial reporting and is ultimately responsible for reviewing and approving financial statements.
Council reviews and approves the Municipality's financial statements for issuance to the members of
Council, inhabitants and ratepayers of the Corporation of the Municipality of Tweed. Council meets
periodically with management, as well as the external auditor, to discuss internal controls over the
financial reporting process, auditing matters and financial reporting issues, to satisfy themselves that
each party is properly discharging their responsibilities and to review the financial statements and the
independent auditor's report.
The consolidated financial statements have been audited by Baker Tilly KDN LLP in accordance with
Canadian generally accepted auditing standards on behalf of the Municipality. Baker Tilly KDN LLP has
full and free access to Council.
Mayor CA reasurer
April 27, 2021
INDEPENDENT AUDITOR'S REPORT
To the Members of Council, Inhabitants and Ratepayers
of the Municipality of Tweed
Baker Tilly KDN LLP
272 Charlotte St.
Peterborough, ON
Canada K9J 2V4
T: (705) 742-3418
F: (705) 742-9775
www.bakertilly.ca
Opinion
We have audited the consolidated financial statements of the Corporation of the Municipality of Tweed
and its local board (the Municipality), which comprise the consolidated statement of financial position as
at December 31, 2020, the consolidated statements of operations and accumulated surplus,change in
net financial assets and cash flows for the year then ended, and notes to the consolidated financial
statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position of the Municipality as at December 31, 2020, and the results
of its consolidated operations and its consolidated cash flows for the year then ended in accordance with
Canadian Public Sector Accounting Standards.
Basis for Opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit
of the Consolidated Financial Statements section of our report. We are independent of the Municipality in
accordance with the ethical requirements that are relevant to our audit of the consolidated financial
statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial
Statements
Management is responsible for the preparation and fair presentation of the 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 consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the
Municipality's ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to liquidate
the Municipality or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Municipality's financial reporting
process.
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
•Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
•Obtain an understanding of internal control relevant to the audit 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 Municipality's internal control.
•Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
•Conclude on the appropriateness of management's use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Municipality's ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor's report to the related disclosures in the consolidated financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor's report. However, future events or conditions may cause the
Municipality to cease to continue as a going concern.
•Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
•Obtain sufficient appropriate audit evidence regarding the consolidated financial information of the
entities or business activities within the Municipality to express an opinion on the consolidated
financial statements. We are responsible for the direction, supervision and performance of the
group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
Baker Tilly KDN LLP
Chartered Professional Accountants
Licensed Public Accountants
Peterborough, Ontario
April 27, 2021
CORPORATION OF THE
MUNICIPALITY OF TWEED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At December 31, 2020
2020 2019
$$
FINANCIAL ASSETS
Cash 1,088,021 5,012,166
Investments (note 2)2,218,669 788,332
Accounts receivable 1,882,119 438,877
Taxes receivable 866,688 900,113
Long term loans (note 8)5,000 10,000
TOTAL FINANCIAL ASSETS 6,060,497 7,149,488
LIABILITIES
Accounts payable and accrued liabilities 866,130 845,756
Deferred revenue - obligatory reserve funds (note 4)89,634 633,306
Deferred revenue - other (note 6)7,291 37,532
Long term debt (note 8)5,000 10,000
Landfill closure and post-closure liability (note 9)1,267,803 1,329,572
TOTAL LIABILITIES 2,235,858 2,856,166
NET FINANCIAL ASSETS 3,824,639 4,293,322
NON-FINANCIAL ASSETS
Tangible capital assets (note 11)29,854,952 27,484,347
Inventories of supplies 80,900 57,786
Prepaid expenses 31,548 23,156
TOTAL NON-FINANCIAL ASSETS 29,967,400 27,565,289
ACCUMULATED SURPLUS (note 12)33,792,039 31,858,611
The accompanying notes are an integral part of these financial statements
1
CORPORATION OF THE
MUNICIPALITY OF TWEED
CONSOLIDATED STATEMENT OF OPERATIONS AND ACCUMULATED SURPLUS
For the Year Ended December 31, 2020
Budget Actual Actual
2020 2020 2019
$$$
(Unaudited)
REVENUES
Property taxation 4,233,036 4,213,730 4,159,619
User charges 1,363,404 1,409,844 1,517,384
Government of Canada 937,300 804,824 29,557
Province of Ontario 2,942,055 2,996,279 2,963,304
Penalties and interest on taxes 118,000 103,571 118,031
Investment income 74,900 67,128 110,339
Donations 13,250 40,037 54,737
Other grants 104,700 101,410 51,659
Parkland fees earned 40,000 40,000 -
Federal gas tax earned 929,604 884,197 525,008
TOTAL REVENUES 10,756,249 10,661,020 9,529,638
EXPENSES
General government 1,090,192 1,157,256 1,078,563
Protection services 1,707,061 1,676,777 1,639,129
Transportation services 3,692,530 3,405,307 3,737,215
Environmental services 1,239,200 1,156,273 1,731,938
Recreation and cultural services 1,022,834 1,023,187 962,883
Planning and development 366,354 308,792 265,131
TOTAL EXPENSES 9,118,171 8,727,592 9,414,859
ANNUAL SURPLUS 1,638,078 1,933,428 114,779
ACCUMULATED SURPLUS - beginning of year 31,858,611 31,743,832
ACCUMULATED SURPLUS - end of year 33,792,039 31,858,611
The accompanying notes are an integral part of these financial statements
2
CORPORATION OF THE
MUNICIPALITY OF TWEED
CONSOLIDATED STATEMENT OF CHANGE IN NET FINANCIAL ASSETS
For the Year Ended December 31, 2020
Budget Actual Actual
2020 2020 2019
$$$
(Unaudited)
ANNUAL SURPLUS 1,638,078 1,933,428 114,779
Amortization of tangible capital assets 2,050,312 1,972,274 2,246,329
Purchase of tangible capital assets (4,858,294)(4,397,264)(1,722,705)
Loss on disposal of tangible capital assets -10,593 62,837
Proceeds on sale of tangible capital assets -43,792 -
Change in inventories of supplies -(23,114)(43,672)
Change in prepaid expenses -(8,392)(22,465)
INCREASE/(DECREASE) IN NET FINANCIAL ASSETS (1,169,904)(468,683)635,103
NET FINANCIAL ASSETS - beginning of year 4,293,322 4,293,322 3,658,219
NET FINANCIAL ASSETS - end of year 3,123,418 3,824,639 4,293,322
The accompanying notes are an integral part of these financial statements
3
CORPORATION OF THE
MUNICIPALITY OF TWEED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2020
2020 2019
$$
CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Annual surplus 1,933,428 114,779
Items not involving cash
Amortization of tangible capital assets 1,972,274 2,246,329
Loss on disposal of tangible capital assets 10,593 62,837
Change in landfill closure and post-closure liability (61,769)503,572
Change in non-cash assets and liabilities
Accounts receivable (1,443,242)652,627
Taxes receivable 33,425 (15,800)
Inventories of supplies (23,114)(43,672)
Prepaid expenses (8,392)(22,465)
Accounts payable and accrued liabilities 20,374 (1,095,953)
Deferred revenue - obligatory reserve funds (543,672)250,757
Deferred revenue - other (30,241)(49,010)
Net change in cash from operating activities 1,859,664 2,604,001
CAPITAL ACTIVITIES
Purchase of tangible capital assets (4,397,264)(1,722,705)
Proceeds on disposal of tangible capital assets 43,792 -
Net change in cash from capital activities (4,353,472)(1,722,705)
INVESTING ACTIVITIES
Redemption of investments 303,224 6,716
Purchase of investments (1,733,561)(36,586)
Net change in cash from investing activities (1,430,337)(29,870)
FINANCING ACTIVITIES
Debt principal repayments (5,000)(8,159)
Long term loans receipts 5,000 8,159
Net change in cash from financing activities --
NET CHANGE IN CASH (3,924,145)851,426
CASH - beginning of year 5,012,166 4,160,740
CASH - end of year 1,088,021 5,012,166
The accompanying notes are an integral part of these financial statements
4
CORPORATION OF THE
MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2020
The Municipality of Tweed is a lower tier municipality in the Province of Ontario, Canada. It conducts its
operations guided by the provisions of provincial statutes such as the Municipal Act, Municipal Affairs Act
and related legislation.
1. SIGNIFICANT ACCOUNTING POLICIES
These consolidated financial statements have been prepared in accordance with the standards in
the Chartered Professional Accountants Canada Public Sector Accounting (PSA) Handbook.
Significant aspects of the accounting policies are as follows:
(a) Reporting Entity
These consolidated financial statements reflect the assets, liabilities, revenues and expenses
and accumulated surplus of the reporting entity.
The reporting entity is comprised of all organizations, committees and local boards accountable
for the administration of their financial affairs and resources to the Municipality and which are
owned and controlled by the Municipality. These consolidated financial statements include:
•Tweed Public Library Board
All interfund assets and liabilities and revenues and expenses are eliminated.
(b) Trust Funds
Trust funds and their related operations administered by the Municipality are not included in
these consolidated financial statements but are reported on separately on the Trust Funds
Statement of Continuity and Statement of Financial Position.
(c) 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. Initial costs for
tangible capital assets that were acquired or developed prior to 2009 were obtained using
historical cost information or using current fair market values discounted by a relevant inflation
factor to the point of acquisition. The cost, less residual value, if any, of tangible capital assets
is amortized on a straight-line basis, over the expected useful life of the asset, as follows:
Land improvements 20 years
Buildings 40-50 years
Roads 7-50 years
Bridges and other structures 20-75 years
Underground and other networks 50-75 years
Vehicles 5-10 years
Machinery and equipment 4-20 years
Tangible capital assets received as contributions are recorded at their fair value at the date of
receipt and are also recorded as revenue.
Tangible capital assets categorized as assets under construction are not amortized until they
are put into service.
5
CORPORATION OF THE
MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2020
1.SIGNIFICANT ACCOUNTING POLICIES, continued
(d) Inventories of Supplies
Inventories of supplies are recorded at the lower of cost, as determined by the first-in, first out
method, and market.
(e) Recognition of Revenues and Expenses
Revenues and expenses are reported on the accrual basis of accounting. The accrual basis of
accounting recognizes revenues in the period in which the transactions or events occurred that
give rise to the revenue; expenses are recognized in the period the goods or services are
acquired and a legal liability is incurred or transfers are due.
Taxation
Property tax billings are prepared by the Municipality based on assessment rolls issued by
the Municipal Property Assessment Corporation (MPAC) and in accordance with the
provisions of the Municipal Act, 2001. The Municipality's Council establishes the tax rates
annually, incorporating amounts to be raised for local services, and amounts the
Municipality is required to collect on behalf of the County and School Boards. From time
to time property assessments are adjusted by MPAC through the reconsideration process
or by the Assessment Review Board through the appeal process. Additional assessments,
referred to as supplementary and omitted assessment can also be issued by MPAC in
accordance with the Assessment Act. These adjustments and additional assessments are
reported in the financial statements when amounts can be reasonably determined.
The Municipality is entitled to collect interest and penalties on overdue taxes. These
revenues are recorded in the period the interest and penalties are levied.
Government funding
Government funding is recognized in the financial statements as revenues in the period in
which events giving rise to the transfers occur, providing the transfers are authorized, any
eligibility criteria have been met, and reasonable estimates of the amounts can be made.
Other revenue
User charges are recognized as revenue in the year the goods and services are provided.
Investment income is recorded when earned.
Federal gas tax and parkland fees are recognized in the period in which the related
expenditures are recorded.
Donations are recognized when received.
(f) Non-Financial Assets
Tangible capital and other non-financial assets are accounted for as assets by the Municipality
because they can be used to provide services in future periods. These assets do not normally
provide resources to discharge the liabilities of the Municipality unless they are sold.
6
CORPORATION OF THE
MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2020
1.SIGNIFICANT ACCOUNTING POLICIES, continued
(g) Reserves and Reserve Funds
Certain amounts, as approved by Council, are set aside in reserves and reserve funds for
future operating and capital purposes. Transfers to and/or from reserves and reserve funds are
an adjustment to the respective fund when approved.
(h) Deferred Revenue
Deferred revenue represents grants, user charges and fees which have been collected but for
which the related services have yet to be performed. These amounts will be recognized as
revenues in the fiscal year the services are performed.
(i) Use of Estimates
Certain items recognized in the consolidated financial statements are subject to measurement
uncertainty. The recognized amounts of such items are based on the Municipality's best
information and judgment. By their nature, these estimates are subject to measurement
uncertainty and the effect on the consolidated financial statements or changes in such
estimates in future periods could be significant. The Municipality's significant estimates include:
•The amounts recorded for landfill closure and post-closure care depend on estimates
of usage, remaining life and capacity. The provision for future closure and post-closure
costs also depends on estimates of such costs;
•The amounts recorded for amortization of tangible capital assets are based on
estimates of useful life and residual values; and
•The amount recorded as allowance for doubtful accounts receivable is based on
management's estimate of future payments on receivable account balances.
2.INVESTMENTS
Investments are recorded at cost and consist of the following:
Market
Value
Actual
2020
Actual
2019
$$$
One Fund Investments - Bond Fund 1,050,912 1,084,431 653,877
One Fund Investments - High Interest Savings 1,007,803 1,007,803 -
Guaranteed investment certificates, maturity dates
from October 3, 2021 to October 10, 2023,
interest rates ranging from 0.75% to 3.00% per
annum 126,435 126,435 134,455
2,185,150 2,218,669 788,332
7
CORPORATION OF THE
MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2020
3.CREDIT FACILITY AGREEMENT
The Municipality has a revolving credit facility agreement with its main financial institution. The
amount available at any time is limited to $500,000 via an operating loan. Any balance borrowed
will accrue interest at the bank’s prime lending rate plus 0.50% per annum. At December 31, 2020
there was no balance outstanding (2019 - $Nil).
4.DEFERRED REVENUE - OBLIGATORY RESERVE FUNDS
A requirement of the Chartered Professional Accountants Canada Public Sector Accounting
Handbook, is that obligatory reserve funds be reported as deferred revenue. This requirement is in
place as legislation and external agreements restrict how these funds may be used and under
certain circumstances these funds may possibly be refunded. The balances in the obligatory
reserve funds of the Municipality are summarized below:
2020 2019
$$
Federal gas tax 51,530 564,768
Parkland 38,104 68,538
89,634 633,306
The continuity of deferred revenue - obligatory reserve funds is as follows:
2020 2019
$$
Balance - beginning of year 633,306 382,549
Add amounts received:
Federal gas tax 366,704 759,733
Parkland 9,000 8,250
Interest 4,821 7,782
380,525 775,765
Less transfer to operations:
Federal gas tax 884,197 525,008
Parkland 40,000 -
924,197 525,008
Balance - end of year 89,634 633,306
8
CORPORATION OF THE
MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2020
5.PENSION AGREEMENTS
Certain employees of the Municipality are eligible members of the Ontario Municipal Employees
Retirement System (OMERS), a multi-employer pension plan.
The Actuarial Opinion contained in the 2020 Annual Report disclosed total actuarial liabilities of
$113,055 million in respect of benefits accrued for service with actuarial assets of $109,844 million
indicating an actuarial deficit of $3,211 million. Because OMERS is a multi-employer plan, any
pension plan surpluses or deficits are a joint responsibility of Ontario municipal organizations and
their employees. As a result, the Municipality does not recognize any share of the OMERS pension
surplus or deficit.
The Municipality's required contributions to OMERS in 2020 were $122,538 (2019 -$108,227).
6.DEFERRED REVENUE - OTHER
Included in deferred revenue - other are the following amounts:
2020 2019
$$
Deposits and other 7,291 31,832
Association of Municipalities of Ontario -5,700
7,291 37,532
The continuity of deferred revenue - other is as follows:
2020 2019
$$
Balance - beginning of year 37,532 86,542
Add:Deposits and other 7,291 26,511
Less transfer to operations:
Association of Municipalities of Ontario 5,700 32,292
Deposits and other 31,832 21,105
Government transfers -22,124
37,532 75,521
Balance - end of year 7,291 37,532
7.TRUST FUNDS
Trust funds administered by the Municipality amounting to $11,108 (2019 -$10,989) have not been
included in the Consolidated Statement of Financial Position nor have their operations been
included in the Consolidated Statement of Operations and Accumulated Surplus. As such balances
are held in trust by the Municipality for the benefit of others, they are not presented as part of the
Municipality's financial position or operations.
9
CORPORATION OF THE
MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2020
8.LONG TERM DEBT
2020 2019
$$
Tile drainage loans due August 1, 2021 5,000 10,000
(a)The Municipality acts as a collection agency for the Province of Ontario for tile drainage loans
for individual ratepayers. The value of these loans outstanding at December 31, 2020 is
$5,000 (2019 -$10,000).
(b)Interest paid during the year on long term debt amounted to $1,793 (2019 -$1,793).
(c)The long term debt reported in (a) of this note is repayable as follows:
Principal Interest Total
$$$
2021 5,000 1,794 6,794
5,000 1,794 6,794
9.LANDFILL CLOSURE AND POST-CLOSURE LIABILITY
The estimated liability for landfill closure and post-closure costs for both of the sites the Municipality
operates is $1,267,803 (2019 -$1,329,572). The closure costs include final cover, vegetation and
additional monitoring wells. Post-closure costs include monitoring, maintenance of control systems
and consulting fees for 25 years after the site is closed.The landfill closure and post-closure liability
will be funded from taxation and a reserve fund.A reserve fund of $1,394,948 (2019 - $1,146,853)
has been established to provide for this liability.
The reported liability is based upon estimates and assumptions with respect to events extending
over the remaining life of the landfill.
The remaining capacity of the solid waste landfill sites is estimated at 175,764 m3 (2019 -180,598
m3) which is 31.3% (2019 -32.2%) of the site’s total capacity. The total discounted future cash
flows for closure and post-closure cost is estimated at $1,941,797 (2019 -$2,048,167) as at
December 31, 2020 using an inflation rate of of 1.64% (2019 - 2.19%) and a discount rate of 2.46%
(2019 - 2.76%).The landfills are expected to reach capacity in 2037 and 2055.
10.CONTINGENT LIABILITIES
The Municipality, in the course of its operations, has been named in several lawsuits the outcomes
of which are indeterminable at this time. No amounts in connection with these items have been
reflected in these financial statements.
10
CORPORATION OF THE
MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2020
11.TANGIBLE CAPITAL ASSETS
The net book value of the Municipality's tangible capital assets are:
2020 2019
$$
General
Land and land improvements 1,837,377 1,930,353
Buildings 2,875,296 2,712,175
Vehicles 1,204,632 1,369,891
Machinery and equipment 1,258,529 971,774
Infrastructure
Buildings 987,822 1,097,597
Roads 8,295,154 8,891,913
Underground and other networks 3,706,278 3,803,727
Bridges and other structures 7,523,229 6,147,864
27,688,317 26,925,294
Assets under construction 2,166,635 559,053
29,854,952 27,484,347
For additional information, see the Consolidated Schedule of Tangible Capital Assets.
During the year there were no write-downs of assets (2019 -$Nil) and no interest capitalized (2019
-$Nil).
Tangible capital assets allocated by segment are as follows:
2020 2019
$$
General government 8,606,711 1,517,361
Protection services -874,723
Transportation services 15,818,383 16,646,416
Environmental services 4,694,100 5,667,228
Recreation and cultural services 728,306 2,770,755
Planning and development 7,452 7,864
29,854,952 27,484,347
11
CORPORATION OF THE
MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2020
12.ACCUMULATED SURPLUS
Accumulated surplus consists of the following:
2020 2019
$$
Surplus/(Deficit)
Unfunded landfill closure and post-closure costs (1,267,803)(1,329,572)
Library board 1,601 2,260
(1,266,202)(1,327,312)
Invested In Capital Assets
Tangible capital assets - net book value 29,854,952 27,484,347
Unfunded capital (36,367)-
29,818,585 27,484,347
Surplus 28,552,383 26,157,035
Reserves
Working funds 950,174 1,170,315
General government 154,394 581,178
Protection services 279,593 185,572
Transportation services 447,185 659,279
Water and sewer 1,203,417 1,209,407
Recreation services 545,443 369,091
Community improvement plan 48,919 71,945
Total Reserves 3,629,125 4,246,787
Reserve Funds
Transportation services 215,583 137,236
Water -170,700
Landfill 1,394,948 1,146,853
Total Reserve Funds 1,610,531 1,454,789
33,792,039 31,858,611
13.BUILDING SERVICES CONTRACTUAL AGREEMENT
The Municipality of Tweed, the Township of Stirling-Rawdon, the Town of Deseronto, the Township
of Tyendinaga and the Township of Madoc have entered into an agreement for joint building
services to be provided by the Township of Stirling-Rawdon. The joint building services agreement
came into effect April 1, 2005. No revenues or expenses have been included in the Consolidated
Statement of Operations and Accumulated Surplus.
12
CORPORATION OF THE
MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2020
14.EXPENSES BY OBJECT
The expenses for the year reported on the Consolidated Statement of Operations and Accumulated
Surplus by object are as follows:
Budget Actual Actual
2020 2020 2019
$$$
(Unaudited)
Salaries and benefits 2,418,958 2,473,546 2,304,212
Interest charges 1,794 1,793 1,793
Materials 2,485,516 2,121,773 2,739,959
Contracted services 1,787,704 1,763,372 1,725,434
Rents and financial 84,410 89,315 48,079
External transfers 289,477 294,926 286,217
Amortization 2,050,312 1,972,274 2,246,329
Loss (gain) on disposal of tangible capital assets -10,593 62,836
9,118,171 8,727,592 9,414,859
15.OPERATIONS OF SCHOOL BOARDS AND THE COUNTY OF HASTINGS
During 2020, requisitions were made by the County of Hastings and School Boards requiring the
Municipality to collect property taxes and payments in lieu of property taxes on their behalf. The
amounts collected and remitted are as follows:
School
Boards County
$$
Property taxes 1,229,723 1,803,093
Taxation from other governments 1,557 7,620
Amounts requisitioned and remitted 1,231,280 1,810,713
These amounts have not been included in the Consolidated Statement of Operations and
Accumulated Surplus.
16.COMMITMENT
Subsequent to the year end, the Municipality committed to a contract for $4,474,000 plus HST as
part of the sewer lagoon system upgrades project. This project will be funded from long term debt,
reserves and sewer operations. In connection with this project, the Municipality was approved for
long term debt financing in 2021 of $3,100,000 from the Ontario Infrastructure and Lands
Corporation. This debt will begin as construction advances and then be converted to a 30 year
amortizing debenture once the project is complete, currently estimated as September 30, 2022.
Interest rates will be determined based on the prevailing rate at interest payment date for the
construction advances and at a prevailing fixed rate once the advances are converted to a
debenture.
13
CORPORATION OF THE
MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2020
17.COMPARATIVE FIGURES
Certain comparative figures were restated, where required, to conform with the current year
presentation.
18.BUDGET FIGURES
The budget, approved by the Municipality, for 2020 is reflected on the Consolidated Statement of
Operations and Accumulated Surplus and the Consolidated Statement of Change in Net Financial
Assets. The budget established for capital investment in tangible capital assets are on a project-
oriented basis, the costs of which may be carried out over one or more years and, therefore, may
not be comparable with current year’s actual amounts. Budget figures have been reclassified for the
purposes of these financial statements to comply with PSA reporting requirements. Budget figures
are not subject to audit.
The following is a reconciliation of the Council approved budget amounts to the PSA amounts:
(Unaudited)(Unaudited)
Revenue Expenses
$$
Council approved budget:
Operating 8,497,922 8,123,180
Capital 4,325,194 4,699,936
Total Council approved budget 12,823,116 12,823,116
Less: Tangible capital assets capitalized -(4,858,294)
Add: Amortization of tangible capital assets -2,050,312
Less: Long term receivable receipts (5,000)-
Less: Principal repayment of long term debt -(5,000)
Less: Transfers to/from reserves and reserve funds (2,099,665)(943,761)
Library Board budget 52,798 52,798
Reallocate tax write offs (15,000)(15,000)
Adjusted budget per Consolidated Statement of Operations 10,756,249 9,104,171
19.UNCERTAINTY CAUSED BY COVID-19
In March 2020, the World Health Organization categorized COVID-19 as a pandemic. The potential
economic effects within the Municipality's environment and in the global markets, possible
disruption in supply chains, and measures being introduced at various levels of government to
curtail the spread of the virus (such as travel restrictions, closures of non-essential municipal and
private operations, imposition of quarantines and social distancing) could have a material impact on
the Municipality's operations. The extent of the impact of this outbreak and related containment
measures on the Municipality's operations cannot be reliably estimated at this time.
14
CORPORATION OF THE
MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2020
20.SEGMENTED INFORMATION
The Municipality of Tweed is a municipal government organization that provides a range of services
to its residents. Municipality services are reported by function and their activities are separately
disclosed in the segmented information.
For each reported segment, revenues and expenses represent both amounts that are directly
attributable to the segment and amounts that are allocated on a reasonable basis. Certain
allocation methodologies are employed in the preparation of segmented financial information.
Taxation, payments-in-lieu of taxes and certain unconditional government transfers are apportioned
based on each segment’s net requirements.
The accounting policies used in these segments are consistent with those followed in the
preparation of the consolidated financial statements as disclosed in Note 1. For additional
information see the Consolidated Schedule of Segment Disclosure.
General Government
General government consists of the activities of Council and general financial and administrative
management of the Municipality and its programs and services.
Protection Services
Protection services include police, fire, conservation authority and protective inspection and control.
The Municipality of Tweed and the Township of Stirling-Rawdon have entered into an agreement for
joint fire services. The joint fire services agreement came into effect January 1, 2016.
Transportation Services
The activities of the transportation function include construction and maintenance of the
Municipality's roads and bridges, winter control and street lighting.
Water and Sewer
This function is responsible for providing water and sewer services to the Municipality.
Other Environmental Services
This function is responsible for providing waste collection, waste disposal and recycling services to
ratepayers.
Recreation and Cultural Services
The recreation and cultural services function provides indoor and outdoor recreational facilities and
programs and library services.
Planning and Development
The planning and development services function manages commercial, industrial and residential
development within the Municipality.
15
CORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED SCHEDULE OF TANGIBLE CAPITAL ASSETS
For the Year Ended December 31, 2020
General Infrastructure
Land and
Land
Improvement
s Buildings Vehicles
Machinery
and
Equipment Buildings Roads
Underground
and Other
Networks
Bridges and
Other
Structures
Assets
Under
Construction Totals
$$$$$$$$$$
COST
Balance, beginning of year 2,474,140 4,413,626 3,554,912 2,023,881 2,947,125 21,668,686 5,789,030 8,835,588 559,053 52,266,041
Add: additions during the
year 8,970 344,381 58,776 457,700 -358,015 25,338 -3,144,084 4,397,264
Less: disposals during the
year -73,166 131,972 66,707 -904,489 2,745 3,734 -1,182,813
Internal transfers -------1,536,502 (1,536,502)-
Balance, end of year 2,483,110 4,684,841 3,481,716 2,414,874 2,947,125 21,122,212 5,811,623 10,368,356 2,166,635 55,480,492
ACCUMULATED
AMORTIZATION
Balance, beginning of year 543,787 1,701,451 2,185,021 1,052,107 1,849,528 12,776,773 1,985,303 2,687,724 -24,781,694
Add: additions during the
year 101,946 134,228 219,573 169,774 109,775 954,774 121,067 161,137 -1,972,274
Less: disposals during the
year -26,134 127,510 65,536 -904,489 1,025 3,734 -1,128,428
Balance, end of year 645,733 1,809,545 2,277,084 1,156,345 1,959,303 12,827,058 2,105,345 2,845,127 -25,625,540
NET BOOK VALUE OF
TANGIBLE CAPITAL
ASSETS 1,837,377 2,875,296 1,204,632 1,258,529 987,822 8,295,154 3,706,278 7,523,229 2,166,635 29,854,952
16
CORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED SCHEDULE OF SEGMENT DISCLOSURE
For the Year Ended December 31, 2020
General
Government
Protection
Services
Transportation
Services
Water and
Sewer
Other
Environmental
Services
Recreation and
Cultural
Services
Planning and
Development Consolidated
$$$$$$$$
Revenues
Property taxation 351,783 1,150,617 1,802,644 -197,618 593,485 117,583 4,213,730
User charges 159,992 26,620 21,955 881,637 212,912 94,124 12,604 1,409,844
Government transfers - operating 363,721 583,014 913,395 -100,133 393,375 59,579 2,413,217
Government transfers - capital --1,387,886 ----1,387,886
Penalties and interest on taxes 103,571 ------103,571
Investment income 30,219 -2,400 882 33,627 --67,128
Donations -2,780 2,552 --34,705 -40,037
Other grants -----90,610 10,800 101,410
Parkland fees earned -----40,000 -40,000
Federal gas tax earned --884,197 ----884,197
Total revenues 1,009,286 1,763,031 5,015,029 882,519 544,290 1,246,299 200,566 10,661,020
Expenses
Salaries and benefits 636,353 103,517 855,763 102,151 192,466 455,222 128,074 2,473,546
Interest charges ------1,793 1,793
Materials 361,749 177,114 1,019,523 63,422 50,301 279,551 170,113 2,121,773
Contracted services 49,244 1,091,518 221,505 309,082 92,023 --1,763,372
Rents and financial 72,336 -5,949 -2,621 9 8,400 89,315
External transfers -205,307 --82,487 7,132 -294,926
Amortization 31,267 99,321 1,339,396 260,000 -241,878 412 1,972,274
Loss (gain) on disposal of tangible
capital assets 6,307 -(36,829)1,720 -39,395 -10,593
Total expenses 1,157,256 1,676,777 3,405,307 736,375 419,898 1,023,187 308,792 8,727,592
Net surplus/(deficit)(147,970)86,254 1,609,722 146,144 124,392 223,112 (108,226)1,933,428
17
CORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED SCHEDULE OF SEGMENT DISCLOSURE
For the Year Ended December 31, 2019
General
Government
Protection
Services
Transportation
Services
Water and
Sewer
Other
Environmental
Services
Recreation and
Cultural
Services
Planning and
Development Consolidated
$$$$$$$$
Revenues
Property taxation -1,602,853 1,317,396 -201,012 794,793 243,565 4,159,619
User charges 202,529 77,120 28,477 853,127 189,061 148,205 18,865 1,517,384
Government transfers - operating 2,778,209 ----45,009 -2,823,218
Government transfers - capital --169,643 ----169,643
Penalties and interest on taxes 118,031 ------118,031
Investment income 57,923 -10,618 3,402 38,396 --110,339
Donations -----54,737 -54,737
Other grants 50,000 ----1,659 -51,659
Federal gas tax earned --525,008 ----525,008
Total revenues 3,206,692 1,679,973 2,051,142 856,529 428,469 1,044,403 262,430 9,529,638
Expenses
Salaries and benefits 612,679 114,808 823,134 91,476 148,309 398,904 114,902 2,304,212
Interest charges ------1,793 1,793
Materials 272,488 144,049 1,135,329 103,507 633,510 311,418 139,658 2,739,959
Contracted services 51,175 1,095,401 180,766 315,369 82,723 --1,725,434
Rents and financial 32,066 -5,132 -2,469 12 8,400 48,079
External transfers 12,000 189,314 --77,206 7,697 -286,217
Amortization 35,319 95,557 1,592,854 277,369 -244,852 378 2,246,329
Loss (gain) on disposal of tangible
capital assets 62,836 ------62,836
Total expenses 1,078,563 1,639,129 3,737,215 787,721 944,217 962,883 265,131 9,414,859
Net surplus/(deficit)2,128,129 40,844 (1,686,073)68,808 (515,748)81,520 (2,701)114,779
18
INDEPENDENT AUDITOR'S REPORT
To the Members of Council, Inhabitants and Ratepayers
of the Municipality of Tweed
Baker Tilly KDN LLP
272 Charlotte St.
Peterborough, ON
Canada K9J 2V4
T: (705) 742-3418
F: (705) 742-9775
www.bakertilly.ca
Opinion
We have audited the financial statements of the Trust Funds of the Corporation of the Municipality of
Tweed (the Trust Funds), which comprise the statement of financial position as at December 31, 2020,
the statement of continuity for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial
position of the Trust Funds as at December 31, 2020, and the continuity of the Trust Funds for the year
then ended in accordance with Canadian Public Sector Accounting Standards.
Basis for Opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit
of the Financial Statements section of our report. We are independent of the Trust Funds in accordance
with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we
have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the 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.
In preparing the financial statements, management is responsible for assessing the Trust Funds' ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Trust Funds or to
cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Trust Funds' financial reporting
process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with Canadian generally accepted auditing standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
•Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
•Obtain an understanding of internal control relevant to the audit 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 Trust Funds' internal control.
•Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
•Conclude on the appropriateness of management's use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Trust Funds' ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor's report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor's report. However, future events or conditions may cause the Trust Funds to
cease to continue as a going concern.
•Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
Baker Tilly KDN LLP
Chartered Professional Accountants
Licensed Public Accountants
Peterborough, Ontario
April 27, 2021
CORPORATION OF THE
MUNICIPALITY OF TWEED
TRUST FUNDS
STATEMENT OF FINANCIAL POSITION
At December 31, 2020
Recreation
Associations
Santa Claus
Parade Fund
2020
Total
2019
Total
$$$$
FINANCIAL ASSETS
Cash -1,008 1,008 508
Investments (note 2)10,347 -10,347 10,214
Accounts receivable 3 -3 517
10,350 1,008 11,358 11,239
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable -250 250 250
FUND BALANCES 10,350 758 11,108 10,989
10,350 1,008 11,358 11,239
TRUST FUNDS
STATEMENT OF CONTINUITY
For the Year Ended December 31, 2020
Recreation
Associations
Santa Claus
Parade Fund
2020
Total
2019
Total
$$$$
BALANCES - beginning of year 10,231 758 10,989 11,011
RECEIPTS
Donations ---1,500
Interest 119 -119 78
119 -119 1,578
EXPENSES
Parade costs ---1,600
BALANCES - end of year 10,350 758 11,108 10,989
The accompanying notes are an integral part of these financial statements
21
CORPORATION OF THE
MUNICIPALITY OF TWEED
TRUST FUNDS
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2020
1.SIGNIFICANT ACCOUNTING POLICIES
These financial statements have been prepared in accordance with the standards in the Chartered
Professional Accountants Canada Public Sector Accounting (PSA) Handbook.
(a)Basis of Accounting
Revenue and expenses are reported on the accrual basis of accounting which recognizes
revenues as they become available and measurable; expenses are recognized as they are
incurred and measurable as a result of receipt of goods or services and the creation of a legal
obligation to pay.
(b)Use of Estimates
The preparation of financial statements in conformity with Canadian generally accepted
accounting principles requires management to make estimates and assumptions. These
estimates and assumptions 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 expenses during the period and are based on the Municipality's best
information and judgment. Actual results could differ from these estimates.
(c)Revenue Recognition
Donations are recognized when they are received. Interest income is recognized when earned.
2.INVESTMENTS
Investments consist of a GIC with interest rate of 0.25% and maturity of November 15, 2021.
22
CORPORATION OF THE MUNICIPALITY OF
TWEED
TWEED PUBLIC LIBRARY BOARD
FINANCIAL STATEMENTS
DECEMBER 31, 2020
INDEPENDENT AUDITOR'S REPORT
To the Members of the Tweed Public Library Board, the
Members of Council, Inhabitants and Ratepayers of the
Municipality of Tweed
Baker Tilly KDN LLP
272 Charlotte St.
Peterborough, ON
Canada K9J 2V4
T: (705) 742-3418
F: (705) 742-9775
www.bakertilly.ca
Qualified Opinion
We have audited the financial statements of the Tweed Public Library Board of the Corporation of the
Municipality of Tweed (the Board), which comprise the statement of financial position as at
December 31, 2020, the statements of operations and accumulated surplus, change in net financial
assets and cash flows for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies.
In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion
section of our report, the accompanying financial statements present fairly, in all material respects, the
financial position of the Board as at December 31, 2020, and the results of its operations and cash flows
for the year then ended in accordance with Canadian Public Sector Accounting Standards.
Basis for Qualified Opinion
In common with many Public Library Boards, the Board derives revenue from fines, other fees and
donations, the completeness of which is not susceptible to satisfactory audit verification. Accordingly,
verification of these revenues was limited to the amounts recorded in the records of the Board.
Therefore, we were not able to determine whether any adjustments might be necessary to fines, other
fees and donations revenue, annual deficit, assets and accumulated surplus.
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit
of the Financial Statements section of our report. We are independent of the Board in accordance with
the ethical requirements that are relevant to our audit of the financial statements in Canada, and we
have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified
opinion.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the 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.
In preparing the financial statements, management is responsible for assessing the Board's ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Board or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Board's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with Canadian generally accepted auditing standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
•Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
•Obtain an understanding of internal control relevant to the audit 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 Board's internal control.
•Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
•Conclude on the appropriateness of management's use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Board's ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor's
report to the related disclosures in the financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor's report. However, future events or conditions may cause the Board to cease to continue as
a going concern.
•Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
Baker Tilly KDN LLP
Chartered Professional Accountants
Licensed Public Accountants
Peterborough, Ontario
April 27, 2021
CORPORATION OF THE
MUNICIPALITY OF TWEED
TWEED PUBLIC LIBRARY BOARD
STATEMENT OF FINANCIAL POSITION
At December 31, 2020
2020 2019
$$
FINANCIAL ASSETS
Cash 28,226 46,097
Accounts receivable 4,304 5,287
TOTAL FINANCIAL ASSETS 32,530 51,384
LIABILITIES
Accounts payable and accrued liabilities -537
Due to Municipality (note 6)31,752 44,981
Deferred revenue -4,297
TOTAL LIABILITIES 31,752 49,815
NET FINANCIAL ASSETS 778 1,569
NON-FINANCIAL ASSETS
Tangible capital assets (note 4)728,306 756,566
Prepaid expenses 823 691
TOTAL NON-FINANCIAL ASSETS 729,129 757,257
ACCUMULATED SURPLUS (note 5)729,907 758,826
The accompanying notes are an integral part of these financial statements
26
CORPORATION OF THE
MUNICIPALITY OF TWEED
TWEED PUBLIC LIBRARY BOARD
STATEMENT OF OPERATIONS AND ACCUMULATED SURPLUS
For the Year Ended December 31, 2020
Budget Actual Actual
2020 2020 2019
$$$
(Unaudited)
REVENUES
Municipality of Tweed (note 6)151,000 165,936 151,000
Province of Ontario 18,132 19,334 12,676
Government of Canada 2,456 -1,629
Other grants 16,200 1,610 3,659
Donations 11,250 11,283 10,504
Fines and other fees 4,760 1,450 4,267
Other -1,297 1,581
TOTAL REVENUES 203,798 200,910 185,316
EXPENSES
Salaries and benefits 146,856 150,478 126,413
Electronic and other resources 1,781 3,172 3,517
Internet sustainability 1,300 1,266 1,242
Professional development 1,500 1,379 1,153
Supplies and maintenance 18,500 11,373 13,813
Office and administration 5,160 5,329 6,273
Specific projects -883 1,221
Utilities 13,701 9,839 11,144
Amortization 44,894 46,110 44,894
TOTAL EXPENSES 233,692 229,829 209,670
ANNUAL DEFICIT (29,894)(28,919)(24,354)
ACCUMULATED SURPLUS - beginning of year 758,826 783,180
ACCUMULATED SURPLUS - end of year 729,907 758,826
The accompanying notes are an integral part of these financial statements
27
CORPORATION OF THE
MUNICIPALITY OF TWEED
TWEED PUBLIC LIBRARY BOARD
STATEMENT OF CHANGE IN NET FINANCIAL ASSETS
For the Year Ended December 31, 2020
Budget Actual Actual
2020 2020 2019
$$$
(Unaudited)
ANNUAL DEFICIT (29,894)(28,919)(24,354)
Amortization of tangible capital assets 44,894 46,110 44,894
Acquisition of tangible capital assets (15,000)(17,850)(14,012)
Change in prepaid expenses -(132)-
CHANGE IN NET FINANCIAL ASSETS/(NET DEBT)-(791)6,528
NET FINANCIAL ASSETS/(NET DEBT) - beginning of
year 1,569 1,569 (4,959)
NET FINANCIAL ASSETS - end of year 1,569 778 1,569
The accompanying notes are an integral part of these financial statements
28
CORPORATION OF THE
MUNICIPALITY OF TWEED
TWEED PUBLIC LIBRARY BOARD
STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2020
2020 2019
$$
CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Annual deficit (28,919)(24,354)
Items not involving cash
Amortization of tangible capital assets 46,110 44,894
Change in non-cash assets and liabilities
Accounts receivable 983 (1,048)
Prepaid expenses (132)-
Accounts payable and accrued liabilities (537)(11,290)
Due to Municipality (13,229)35,788
Deferred revenue (4,297)-
Net change in cash from operating activities (21)43,990
CAPITAL ACTIVITIES
Acquisition of tangible capital assets (17,850)(14,012)
NET CHANGE IN CASH (17,871)29,978
CASH - beginning of year 46,097 16,119
CASH - end of year 28,226 46,097
The accompanying notes are an integral part of these financial statements
29
CORPORATION OF THE
MUNICIPALITY OF TWEED
TWEED PUBLIC LIBRARY BOARD
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2020
1.SIGNIFICANT ACCOUNTING POLICIES
These financial statements have been prepared in accordance with the standards in the Chartered
Professional Accountants Canada Public Sector Accounting (PSA) Handbook. Significant aspects
of the accounting policies adopted by the Board are as follows:
(a)Recognition of Revenue and Expenses
Revenue and expenses are reported on the accrual basis of accounting. The accrual basis of
accounting recognizes revenue in the period in which the transactions of events occurred that
give rise to the revenue; expenses are recognized in the period the goods or services are
acquired and a legal liability is incurred or transfers are due.
Government funding is recognized in the financial statements as revenues in the period in
which events giving rise to the transfers occur, providing the transfers are authorized, any
eligibility criteria have been met, and reasonable estimates of the amounts can be made.
Fines and other fees are recognized as revenue in the year the goods and services are
provided.
Donations and other revenue is recognized when the amounts are received.
Contributions from the Municipality of Tweed are recognized as approved by the Municipality.
(b)Use of Estimates
Certain items recognized in the financial statements are subject to measurement uncertainty.
The recognized amounts of such items are based on the Board's best information and
judgment. By their nature, these estimates are subject to measurement uncertainty and the
effect on the financial statements of changes in such estimates in future periods could be
significant. The Board's significant estimates include:
•The amounts recorded for amortization of tangible capital assets are based on
estimates of useful life and residual values.
(c)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. Initial costs for
tangible capital assets that were acquired or developed prior to 2009 were obtained using
historical cost information or using current fair market values discounted by a relevant inflation
factor to the point of acquisition. The cost, less residual value, if any, of tangible capital assets
is amortized on a straight-line basis, over the expected useful life of the asset, as follows:
Buildings 40 years
Equipment 15 years
Computers 5 years
Books 7 years
Tangible capital assets received as contributions are recorded at their fair value at the date of
receipt and are also recorded as revenue.
30
CORPORATION OF THE
MUNICIPALITY OF TWEED
TWEED PUBLIC LIBRARY BOARD
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2020
1.SIGNIFICANT ACCOUNTING POLICIES, continued
(d)Deferred Revenue
Deferred revenue represents grants, user charges and fees which have been collected but for
which the related services have yet to be performed. These amounts will be recognized as
revenues in the fiscal year the services are performed.
(e)Non-Financial Assets
Tangible capital assets and other non-financial assets are accounted for as assets by the Board
because they can be used to provide services in future periods. These assets do not normally
provide resources to discharge the liabilities of the Board unless they are sold.
(f)Inter-Entity Transactions
The Tweed Public Library Board is a Board of the Municipality of Tweed and is consolidated
with the Municipality's financial statements.
Allocated costs and recovery of costs are measured at the exchange amount, which is the
amount of consideration established and agreed to by the related parties.
Unallocated costs are measured at the carrying amount, which is the amount recorded in the
records of the Municipality.
2.BUDGET FIGURES
The operating budget, approved by the Board, for 2020 is reflected on the Statement of Operations
and Accumulated Surplus and the Statement of Change in Net Financial Assets. The budgets
established for capital investment in tangible capital assets are on a project-oriented basis, the costs
of which may be carried out over one or more years and, therefore, may not be comparable with
current year’s actual expenditure amounts. Budget figures have been reclassified for the purposes
of these financial statements to comply with PSA reporting requirements. Budget figures are not
subject to audit.
3.COMPARATIVE FIGURES
Certain comparative figures were restated, where required, to conform with the current year
presentation.
31
CORPORATION OF THE
MUNICIPALITY OF TWEED
TWEED PUBLIC LIBRARY BOARD
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2020
4.TANGIBLE CAPITAL ASSETS
The net book value of the Board's tangible capital assets are:
Buildings Equipment Computers Books
2020
Totals
2019
Totals
$$$$$$
COST
Balance, beginning of year 876,450 147,979 10,053 78,863 1,113,345 1,111,916
Add: additions during the
year -407 4,926 12,517 17,850 14,012
Less: disposals during the
year --1,288 11,328 12,616 12,583
Balance, end of year 876,450 148,386 13,691 80,052 1,118,579 1,113,345
ACCUMULATED
AMORTIZATION
Balance, beginning of year 219,065 96,705 4,474 36,535 356,779 324,468
Add: additions during the
year 21,911 9,865 2,898 11,436 46,110 44,894
Less: disposals during the
year --1,288 11,328 12,616 12,583
Balance, end of year 240,976 106,570 6,084 36,643 390,273 356,779
NET BOOK VALUE OF
TANGIBLE CAPITAL
ASSETS 635,474 41,816 7,607 43,409 728,306 756,566
5.ACCUMULATED SURPLUS
Accumulated surplus consists of the following:
2020 2019
$$
Surplus
Operations 1,601 2,260
Invested In Capital Assets
Tangible capital assets - net book value 728,306 756,566
729,907 758,826
32
CORPORATION OF THE
MUNICIPALITY OF TWEED
TWEED PUBLIC LIBRARY BOARD
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2020
6.INTER-ENTITY TRANSACTIONS
During the year, the Board entered into transactions with the Municipality of Tweed.
As part of the budgeting process, the Municipality approves a contribution to the Board which is
identified on the Statement of Operations and Accumulated Surplus.
Details of the inter-entity expense transactions are as follows:
2020 2019
$$
Unallocated costs:
Water and sewer 846 968
846 968
In addition, the following services are provided to the Board by the Municipality at no cost:
•Payroll services
•Rental of land
•Cooling system upgrades
All balances with the Municipality of Tweed have been identified on the Statement of Financial
Position.Due from (to) balances are unsecured, without interest and have no terms of repayment.
7.UNCERTAINTY CAUSED BY COVID-19
In March 2020, the World Health Organization categorized COVID-19 as a pandemic. The potential
economic effects within the Board's environment and in the global markets, possible disruption in
supply chains, and measures being introduced at various levels of government to curtail the spread
of the virus (such as travel restrictions, closures of non-essential municipal and private operations,
imposition of quarantines and social distancing) could have a material impact on the Board's
operations. The extent of the impact of this outbreak and related containment measures on the
Board's operations cannot be reliably estimated at this time.
33