HomeMy Public PortalAbout2021 Tweed Consolidated FSCORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2021
CORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2021
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 - 16
Schedule of Tangible Capital Assets 17
Schedules of Segment Disclosure 18 - 19
TRUST FUNDS
Independent Auditor's Report 20
Statement of Financial Position 22
Statement of Continuity 22
Notes to the Financial Statements 23
LOCAL BOARD
Tweed Public Library Board 24 - 34
The Corporation of the
MUNICIPALITY OF TWEED
255 Metcalf St., Postal Bag 729
Tweed, ON K0K 3J0
Tel.: (613~478-2535
Fax: (613) 478-6457
Email: in fo!~t~'eed.ca
Website: ~ ww.tweed.ca
face book.con~tweedontario
CORPORATION OF THE MUNICIPALITY OF T~NEED
For The Year Ended December 31, 2021
MANAGEMENT REPORT
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 faidy, 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 propedy 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
May 11, 2022
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, 2021, 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, 2021, 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
May 11, 2022
CORPORATION OF THE
MUNICIPALITY OF TWEED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At December 31, 2021
2021 2020
$$
FINANCIAL ASSETS
Cash 2,181,728 1,088,021
Investments (note 2)1,817,362 2,218,669
Accounts receivable 1,603,322 1,882,119
Taxes receivable 662,127 866,688
Long term loans (note 8)-5,000
TOTAL FINANCIAL ASSETS 6,264,539 6,060,497
LIABILITIES
Accounts payable and accrued liabilities 1,497,796 866,130
Deferred revenue - obligatory reserve funds (note 4)420,265 89,634
Deferred revenue - other (note 6)19,588 7,291
OILC temporary loan (note 16)1,530,000 -
Long term debt (note 8)-5,000
Landfill closure and post-closure liability (note 9)1,595,993 1,267,803
TOTAL LIABILITIES 5,063,642 2,235,858
NET FINANCIAL ASSETS 1,200,897 3,824,639
NON-FINANCIAL ASSETS
Tangible capital assets (note 11)34,132,724 29,854,952
Inventories of supplies 118,958 80,900
Prepaid expenses 35,663 31,548
TOTAL NON-FINANCIAL ASSETS 34,287,345 29,967,400
ACCUMULATED SURPLUS (note 12)35,488,242 33,792,039
The accompanying notes are an integral part of these financial statements
1
CORPORATION OF THE
MUNICIPALITY OF TWEED
CONSOLIDATED STATEMENT OF OPERATIONS AND ACCUMULATED SURPLUS
For the Year Ended December 31, 2021
Budget Actual Actual
2021 2021 2020
$$$
(Unaudited)
REVENUES
Property taxation 4,301,473 4,308,751 4,213,730
User charges 1,438,337 1,701,183 1,409,844
Government of Canada 1,127,472 1,267,930 804,824
Province of Ontario 3,779,697 3,424,415 2,996,279
Other municipalities -28,500 -
Penalties and interest on taxes 110,000 98,747 103,571
Investment income 77,400 36,486 67,128
Donations 11,250 56,478 40,037
Other grants 66,900 48,227 101,410
Parkland fees earned --40,000
Canada Community-Building Fund amounts earned 419,000 419,000 884,197
Gain/(loss) on disposal of tangible capital assets 100,000 277,132 (10,593)
TOTAL REVENUES 11,431,529 11,666,849 10,650,427
EXPENSES
General government 1,315,169 1,274,548 1,150,949
Protection services 1,723,412 1,626,738 1,676,777
Transportation services 3,770,905 3,742,559 3,442,136
Environmental services 1,320,762 1,930,447 1,154,553
Recreation and cultural services 1,241,432 1,166,812 983,792
Planning and development 276,130 229,542 308,792
TOTAL EXPENSES 9,647,810 9,970,646 8,716,999
ANNUAL SURPLUS 1,783,719 1,696,203 1,933,428
ACCUMULATED SURPLUS - beginning of year 33,792,039 31,858,611
ACCUMULATED SURPLUS - end of year 35,488,242 33,792,039
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, 2021
Budget Actual Actual
2021 2021 2020
$$$
(Unaudited)
ANNUAL SURPLUS 1,783,719 1,696,203 1,933,428
Amortization of tangible capital assets 2,292,439 2,058,196 1,972,274
Purchase of tangible capital assets (5,579,133)(6,400,223)(4,397,264)
Loss/(gain) on disposal of tangible capital assets (100,000)(277,132)10,593
Proceeds on sale of tangible capital assets 100,000 341,387 43,792
Change in inventories of supplies -(38,058)(23,114)
Change in prepaid expenses -(4,115)(8,392)
DECREASE IN NET FINANCIAL ASSETS (1,502,975)(2,623,742)(468,683)
NET FINANCIAL ASSETS - beginning of year 3,824,639 3,824,639 4,293,322
NET FINANCIAL ASSETS - end of year 2,321,664 1,200,897 3,824,639
The accompanying notes are an integral part of these financial statements
3
CORPORATION OF THE
MUNICIPALITY OF TWEED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2021
2021 2020
$$
CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Annual surplus 1,696,203 1,933,428
Items not involving cash
Amortization of tangible capital assets 2,058,196 1,972,274
Loss/(gain) on disposal of tangible capital assets (277,132)10,593
Change in landfill closure and post-closure liability 328,190 (61,769)
Change in non-cash assets and liabilities
Accounts receivable 278,797 (1,443,242)
Taxes receivable 204,561 33,425
Inventories of supplies (38,058)(23,114)
Prepaid expenses (4,115)(8,392)
Accounts payable and accrued liabilities 631,666 20,374
Deferred revenue - obligatory reserve funds 330,631 (543,672)
Deferred revenue - other 12,297 (30,241)
Net change in cash from operating activities 5,221,236 1,859,664
CAPITAL ACTIVITIES
Purchase of tangible capital assets (6,400,223)(4,397,264)
Proceeds on disposal of tangible capital assets 341,387 43,792
Net change in cash from capital activities (6,058,836)(4,353,472)
INVESTING ACTIVITIES
Redemption of investments 1,602,506 303,224
Purchase of investments (1,201,199)(1,733,561)
Net change in cash from investing activities 401,307 (1,430,337)
FINANCING ACTIVITIES
OLIC temporary loan 1,530,000 -
Debt principal repayments (5,000)(5,000)
Long term loan receipts 5,000 5,000
Net change in cash from financing activities 1,530,000 -
NET CHANGE IN CASH 1,093,707 (3,924,145)
CASH - beginning of year 1,088,021 5,012,166
CASH - end of year 2,181,728 1,088,021
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, 2021
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, 2021
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, 2021
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
2021
Actual
2020
$$$
One Fund Investments - Bond Fund 1,035,739 1,102,580 1,084,431
One Fund Investments - High Interest Savings 587,108 587,108 1,007,803
Guaranteed investment certificates, maturity dates
from March 20, 2023 to October 5, 2026, interest
rates ranging from 0.35% to .85% per annum 127,674 127,674 126,435
1,750,521 1,817,362 2,218,669
7
CORPORATION OF THE
MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2021
3.CREDIT FACILITY AGREEMENT
The Municipality has a revolving credit facility agreement with its main financial institution. The
amount available at any time is limited to $500,000 via an operating loan. Any balance borrowed
will accrue interest at the bank’s prime lending rate plus 0.50% per annum. At December 31, 2021
there was no balance outstanding (2020 - $Nil).
4.DEFERRED REVENUE - OBLIGATORY RESERVE FUNDS
A requirement of the Chartered Professional Accountants Canada Public Sector Accounting
Handbook, is that obligatory reserve funds be reported as deferred revenue. This requirement is in
place as legislation and external agreements restrict how these funds may be used and under
certain circumstances these funds may possibly be refunded. The balances in the obligatory
reserve funds of the Municipality are summarized below:
2021 2020
$$
Canada Community-Building Fund 377,457 51,530
Parkland 42,808 38,104
420,265 89,634
The continuity of deferred revenue - obligatory reserve funds is as follows:
2021 2020
$$
Balance - beginning of year 89,634 633,306
Add amounts received:
Canada Community-Building Fund 743,586 366,704
Parkland 4,500 9,000
Interest 1,545 4,821
749,631 380,525
Less transfer to operations:
Canada Community-Building Fund 419,000 884,197
Parkland -40,000
419,000 924,197
Balance - end of year 420,265 89,634
8
CORPORATION OF THE
MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2021
5.PENSION AGREEMENTS
Certain employees of the Municipality are eligible members of the Ontario Municipal Employees
Retirement System (OMERS), a multi-employer pension plan.
The Actuarial Opinion contained in the 2021 Annual Report disclosed total actuarial liabilities of
$120,796 million in respect of benefits accrued for service with actuarial assets of $117,665 million
indicating an actuarial deficit of $3,131 million. Because OMERS is a multi-employer plan, any
pension plan surpluses or deficits are a joint responsibility of Ontario municipal organizations and
their employees. As a result, the Municipality does not recognize any share of the OMERS pension
surplus or deficit.
The Municipality's required contributions to OMERS in 2021 were $123,374 (2020 -$122,538).
Some of the employees of the Municipality, who are not members of OMERS, are eligible to be
members of a contributory pension plan. Employer contributions to the plan by the Municipality
during the year amounted to $28,102 (2020 - $58,941). These contributions which match the
employees' contribution for current service, are expense during the year in which services are
rendered and represent the total pension obligation of the Municipality.
6.DEFERRED REVENUE - OTHER
Included in deferred revenue - other are the following amounts:
2021 2020
$$
Deposits and other 13,088 7,291
Library grants and donations 6,500 -
19,588 7,291
The continuity of deferred revenue - other is as follows:
2021 2020
$$
Balance - beginning of year 7,291 37,532
Deposits and other 13,088 7,291
Library grants and donations 6,500 -
19,588 7,291
Less transfer to operations:
Association of Municipalities of Ontario -5,700
Deposits and other 7,291 31,832
7,291 37,532
Balance - end of year 19,588 7,291
9
CORPORATION OF THE
MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2021
7.TRUST FUNDS
Trust funds administered by the Municipality amounting to $11,386 (2020 -$11,108) have not been
included in the Consolidated Statement of Financial Position nor have their operations been
included in the Consolidated Statement of Operations and Accumulated Surplus. As such balances
are held in trust by the Municipality for the benefit of others, they are not presented as part of the
Municipality's financial position or operations.
8.LONG TERM DEBT
2021 2020
$$
Tile drainage loans due August 1, 2021 -5,000
(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, 2021 is $Nil
(2020 -$5,000).
(b)Interest paid during the year on long term debt amounted to $1,435 (2020 -$1,793).
9.LANDFILL CLOSURE AND POST-CLOSURE LIABILITY
The estimated liability for landfill closure and post-closure costs for the two landfill sites the
Municipality operates is $1,595,993 (2020 -$1,267,803). 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 $1,188,988
(2020 - $1,394,948) 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 total discounted future cash flows for closure and post-
closure cost is estimated at $1,986,193 as at December 31, 2021 (2020 -$1,941,797).
The remaining capacity of the solid waste landfill sites is estimated at 74,931 m3 (2020 -175,764
m3) which is 13.3% (2020 -31.3%) of the sites' total capacity. The total discounted future cash
flows for closure and post-closure cost is estimated at $1,986,193 (2020 -$1,941,797) as at
December 31, 2021 using an inflation rate of 1.67% (2020 - 1.64%) and a discount rate of 3.14%
(2020 - 2.46%).The Municipality has decided to close the Hunt Road site at December 31, 2021.
The Marlbank Road site is expected to reach it's capacity in 2037.
10.CONTINGENT LIABILITIES
The Municipality, in the course of its operations, is often named in 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, 2021
11.TANGIBLE CAPITAL ASSETS
The net book value of the Municipality's tangible capital assets are:
2021 2020
$$
General
Land and land improvements 1,699,434 1,837,377
Buildings 2,955,465 2,875,296
Vehicles 1,116,006 1,204,632
Machinery and equipment 1,678,585 1,258,529
Infrastructure
Buildings 878,048 987,822
Roads 9,536,859 8,295,154
Underground and other networks 3,585,169 3,706,278
Bridges and other structures 7,381,903 7,523,229
28,831,469 27,688,317
Assets under construction 5,301,255 2,166,635
34,132,724 29,854,952
For additional information, see the Consolidated Schedule of Tangible Capital Assets.
During the year there were no write-downs of assets (2020 -$Nil) and no interest capitalized (2020
-$Nil).
Tangible capital assets allocated by segment are as follows:
2021 2020
$$
General government 1,439,661 1,490,966
Protection services 925,494 832,607
Transportation services 18,628,269 18,692,378
Environmental services 10,039,791 5,997,323
Recreation and cultural services 3,083,926 2,827,312
Planning and development 15,583 14,366
34,132,724 29,854,952
11
CORPORATION OF THE
MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2021
12.ACCUMULATED SURPLUS
Accumulated surplus consists of the following:
2021 2020
$$
Surplus/(Deficit)
Unfunded landfill closure and post-closure costs (1,595,993)(1,267,803)
Library board 10,162 1,601
(1,585,831)(1,266,202)
Invested In Capital Assets
Tangible capital assets - net book value 34,132,724 29,854,952
Unfunded capital - Municipal building (9,528)-
Unfunded capital - Fire hall (58,900)-
Unfunded capital - Lagoon system upgrades (2,151,403)-
Unfunded capital - Fitness shelter -(36,367)
31,912,893 29,818,585
Surplus 30,327,062 28,552,383
Reserves
Working funds 531,167 950,174
General government 428,355 154,394
Protection services 285,841 279,593
Transportation services 773,171 447,185
Water and sewer 1,257,312 1,203,417
Recreation services 442,953 545,443
Community improvement plan 45,154 48,919
Total Reserves 3,763,953 3,629,125
Reserve Funds
Transportation services 208,239 215,583
Landfill 1,188,988 1,394,948
Total Reserve Funds 1,397,227 1,610,531
35,488,242 33,792,039
13.BUILDING SERVICES CONTRACTUAL AGREEMENT
The Municipality of Tweed, the Township of Stirling-Rawdon, the Town of Deseronto, the Township
of Tyendinaga, the Township of Madoc and the Municipality of Marmora and Lake have entered into
an agreement for joint building services to be provided by the Township of Stirling-Rawdon. The
joint building services agreement came into effect April 1, 2005. No revenues or expenses have
been included in the Consolidated Statement of Operations and Accumulated Surplus.
12
CORPORATION OF THE
MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2021
14.EXPENSES BY OBJECT
The expenses for the year reported on the Consolidated Statement of Operations and Accumulated
Surplus by object are as follows:
Budget Actual Actual
2021 2021 2020
$$$
(Unaudited)
Salaries and benefits 2,663,940 2,549,726 2,473,546
Interest charges 1,794 1,816 1,793
Materials 2,536,552 2,624,394 2,180,819
Contracted services 1,769,696 2,368,131 1,704,326
Rents and financial 84,060 93,284 89,315
External transfers 299,329 275,100 294,926
Amortization 2,292,439 2,058,196 1,972,274
9,647,810 9,970,647 8,716,999
15.OPERATIONS OF SCHOOL BOARDS AND THE COUNTY OF HASTINGS
During 2021, 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
$$
Property taxes 3,067,762 1,860,448
Taxation from other governments 1,812 11,026
Amounts requisitioned and remitted 3,069,574 1,871,474
These amounts have not been included in the Consolidated Statement of Operations and
Accumulated Surplus.
16.OILC ADVANCE
In 2021, the Municipality entered into a temporary loan agreement with the Ontario Infrastructure
and Lands Corporation (OILC) for the financing of the capital work to be completed on the Tweed
Wastewater Lagoon System upgrades. The maximum aggregate principal amount is $3,100,000.
At December 31, 2021, the Municipality had drawn and received $1,530,000 of this balance by the
year end. This debt will be converted to a 30 year amortizing debenture once the project is
completed.
17.COMPARATIVE FIGURES
Certain comparative figures were restated, where required, to conform with the current year
presentation.
13
CORPORATION OF THE
MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2021
18.BUDGET FIGURES
The budget, approved by the Municipality, for 2021 is reflected on the Consolidated Statement of
Operations and Accumulated Surplus and the Consolidated Statement of Change in Net Financial
Assets. The budget established for capital investment in tangible capital assets are on a project-
oriented basis, the costs of which may be carried out over one or more years and, therefore, may
not be comparable with current year’s actual amounts. Budget figures have been reclassified for the
purposes of these financial statements to comply with PSA reporting requirements. Budget figures
are not subject to audit.
The following is a reconciliation of the Council approved budget amounts to the PSA amounts:
(Unaudited)(Unaudited)
Revenue Expenses
$$
Council approved budget:
Operating 8,912,201 8,601,870
Capital 5,275,634 5,585,965
Total Council approved budget 14,187,835 14,187,835
Less: Tangible capital assets capitalized -(5,579,133)
Add: Amortization of tangible capital assets -2,292,439
Less: Long term receivable receipts (5,000)-
Less: Principal repayment of long term debt -(5,000)
Less: Transfers to/from reserves and reserve funds (1,752,435)(1,282,522)
Proceeds of long term debt (1,033,062)-
Library Board budget 49,191 49,191
Reallocate tax write offs (15,000)(15,000)
Adjusted budget per Consolidated Statement of Operations 11,431,529 9,647,810
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, 2021
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
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2021
21.OIL KINGS HOCKEY TEAM INFORMATION
In 2021, the Municipality began operations of the Tweed Oil Kings, a men's hockey team that is a
part of the Eastern Ontario Super Hockey League (EOSHL). The amounts presented below are also
included in the Consolidated Statement of Operations and Accumulated Surplus. Various revenues
and expenses related to the team are as follows:
2021
$
Revenue
Advertising 15,750
Ticket sales 12,211
Fundraising 8,858
Miscellaneous 202
37,021
Expenses
Equipment and uniforms 22,674
Merchandise for sale 5,939
Travel 4,393
Logos 3,749
Alcohol inventory & licence 3,475
League fees 2,000
Supplies 1,895
Ice rental 666
Referees and time keepers 3,710
48,501
Annual surplus (deficit)(11,480)
16
CORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED SCHEDULE OF TANGIBLE CAPITAL ASSETS
For the Year Ended December 31, 2021
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
$$$$$$$$$$
COST
Balance, beginning of year 2,483,110 4,684,841 3,481,716 2,414,874 2,947,125 21,122,212 5,811,623 10,368,356 2,166,635 55,480,492
Add: additions during the
year 14,425 -97,588 554,100 -1,170,527 -23,909 4,539,674 6,400,223
Less: disposals during the
year 46,595 -29,500 97,654 -1,282,850 ---1,456,599
Internal transfers -220,636 -57,100 -1,127,318 --(1,405,054)-
Balance, end of year 2,450,940 4,905,477 3,549,804 2,928,420 2,947,125 22,137,207 5,811,623 10,392,265 5,301,255 60,424,116
ACCUMULATED
AMORTIZATION
Balance, beginning of year 645,733 1,809,545 2,277,084 1,156,345 1,959,303 12,827,058 2,105,345 2,845,127 -25,625,540
Add: additions during the
year 105,773 140,467 183,264 191,074 109,774 1,041,500 121,109 165,235 -2,058,196
Less: disposals during the
year --26,550 97,584 -1,268,210 ---1,392,344
Balance, end of year 751,506 1,950,012 2,433,798 1,249,835 2,069,077 12,600,348 2,226,454 3,010,362 -26,291,392
NET BOOK VALUE OF
TANGIBLE CAPITAL
ASSETS 1,699,434 2,955,465 1,116,006 1,678,585 878,048 9,536,859 3,585,169 7,381,903 5,301,255 34,132,724
17
CORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED SCHEDULE OF SEGMENT DISCLOSURE
For the Year Ended December 31, 2021
General
Government
Protection
Services
Transportation
Services
Water and
Sewer
Other
Environmental
Services
Recreation and
Cultural
Services
Planning and
Development Consolidated
$$$$$$$$
Revenues
Property taxation 254,922 1,089,998 1,990,118 -256,209 551,065 166,439 4,308,751
User charges 152,592 92,250 45,403 879,369 351,611 160,564 19,394 1,701,183
Government transfers - operating 152,180 546,696 998,742 -110,359 599,815 83,479 2,491,271
Government transfers - capital
Other municipalities
-
-
-
-
134,136
-
2,066,938
-
-
-
-
28,500
-
-
2,201,074
28,500
Penalties and interest on taxes 98,747 ------98,747
Investment income 15,053 -1,639 -19,794 --36,486
Donations -18,211 ---38,267 -56,478
Other grants 15,181 6,000 ---27,046 -48,227
Canada Community-Building Fund
amounts earned --419,000 ----419,000
Gain/(loss) on disposal of tangible
capital assets 294,722 -(17,590)----277,132
Total revenues 983,397 1,753,155 3,571,448 2,946,307 737,973 1,405,257 269,312 11,666,849
Expenses
Salaries and benefits 663,866 89,293 885,690 95,721 191,656 485,773 137,727 2,549,726
Interest charges ------1,816 1,816
Materials 450,266 195,151 1,265,705 103,142 125,906 403,037 81,187 2,624,394
Contracted services 47,381 1,066,628 194,937 635,288 422,097 1,800 -2,368,131
Rents and financial 77,450 -4,328 -3,102 4 8,400 93,284
External transfers -176,915 --88,614 9,571 -275,100
Amortization 35,585 98,751 1,391,899 264,922 -266,627 412 2,058,196
Total expenses 1,274,548 1,626,738 3,742,559 1,099,073 831,375 1,166,812 229,542 9,970,647
Net surplus/(deficit)(291,151)126,417 (171,111)1,847,234 (93,402)238,445 39,770 1,696,202
18
CORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED SCHEDULE OF SEGMENT DISCLOSURE
For the Year Ended December 31, 2020
General
Government
Protection
Services
Transportation
Services
Water and
Sewer
Other
Environmental
Services
Recreation and
Cultural
Services
Planning and
Development Consolidated
$$$$$$$$
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
Canada Community-Building Fund
amounts earned --884,197 ----884,197
Gain/(loss) on disposal of tangible
capital assets (6,307)-36,829 -(1,720)(39,395)-(10,593)
Total revenues 1,002,979 1,763,031 5,051,858 882,519 542,570 1,206,904 200,566 10,650,427
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 63,422 109,347 279,551 170,113 2,180,819
Contracted services 49,244 1,091,518 221,505 309,082 32,977 --1,704,326
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
Total expenses 1,150,949 1,676,777 3,442,136 734,655 419,898 983,792 308,792 8,716,999
Net surplus/(deficit)(147,970)86,254 1,609,722 147,864 122,672 223,112 (108,226)1,933,428
19
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, 2021,
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, 2021, 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
May 11, 2022
CORPORATION OF THE
MUNICIPALITY OF TWEED
TRUST FUNDS
STATEMENT OF FINANCIAL POSITION
At December 31, 2021
Recreation
Associations
Santa Claus
Parade Fund
2021
Total
2020
Total
$$$$
FINANCIAL ASSETS
Cash -1,008 1,008 1,008
Investments (note 2)10,373 -10,373 10,347
Accounts receivable 5 -5 3
10,378 1,008 11,386 11,358
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable ---250
FUND BALANCES 10,378 1,008 11,386 11,108
10,378 1,008 11,386 11,358
TRUST FUNDS
STATEMENT OF CONTINUITY
For the Year Ended December 31, 2021
Recreation
Associations
Santa Claus
Parade Fund
2021
Total
2020
Total
$$$$
BALANCES - beginning of year 10,350 758 11,108 10,989
RECEIPTS
Donations -250 250 -
Interest 28 -28 119
28 250 278 119
BALANCES - end of year 10,378 1,008 11,386 11,108
The accompanying notes are an integral part of these financial statements
22
CORPORATION OF THE
MUNICIPALITY OF TWEED
TRUST FUNDS
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2021
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 0.40% and maturity of November 15, 2022.
23
CORPORATION OF THE MUNICIPALITY OF
TWEED
TWEED PUBLIC LIBRARY BOARD
FINANCIAL STATEMENTS
DECEMBER 31, 2021
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, 2021, 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, 2021, 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
May 11, 2022
CORPORATION OF THE
MUNICIPALITY OF TWEED
TWEED PUBLIC LIBRARY BOARD
STATEMENT OF FINANCIAL POSITION
At December 31, 2021
2021 2020
$$
FINANCIAL ASSETS
Cash 52,769 28,226
Accounts receivable 3,168 4,304
TOTAL FINANCIAL ASSETS 55,937 32,530
LIABILITIES
Due to Municipality (note 6)40,123 31,752
Deferred revenue (note 5)6,500 -
TOTAL LIABILITIES 46,623 31,752
NET FINANCIAL ASSETS 9,314 778
NON-FINANCIAL ASSETS
Tangible capital assets (note 3)698,213 728,306
Prepaid expenses 848 823
TOTAL NON-FINANCIAL ASSETS 699,061 729,129
ACCUMULATED SURPLUS (note 4)708,375 729,907
The accompanying notes are an integral part of these financial statements
27
CORPORATION OF THE
MUNICIPALITY OF TWEED
TWEED PUBLIC LIBRARY BOARD
STATEMENT OF OPERATIONS AND ACCUMULATED SURPLUS
For the Year Ended December 31, 2021
Budget Actual Actual
2021 2021 2020
$$$
(Unaudited)
REVENUES
Municipality of Tweed (note 6)154,000 163,591 165,936
Province of Ontario 14,976 15,859 19,334
Government of Canada 2,300 1,296 -
Other grants 16,900 3,146 1,610
Donations 11,250 16,316 11,283
Fines and other fees 3,765 1,670 1,450
Other -17 1,297
TOTAL REVENUES 203,191 201,895 200,910
EXPENSES
Salaries and benefits 146,600 151,476 150,478
Electronic and other resources 1,781 3,666 3,172
Internet sustainability 1,300 1,460 1,266
Professional development 1,700 132 1,379
Supplies and maintenance 18,350 7,301 11,373
Office and administration 4,960 3,907 5,329
Specific projects -673 883
Utilities 13,500 8,317 9,839
Amortization 46,111 46,495 46,110
TOTAL EXPENSES 234,302 223,427 229,829
ANNUAL DEFICIT (31,111)(21,532)(28,919)
ACCUMULATED SURPLUS - beginning of year 729,907 758,826
ACCUMULATED SURPLUS - end of year 708,375 729,907
The accompanying notes are an integral part of these financial statements
28
CORPORATION OF THE
MUNICIPALITY OF TWEED
TWEED PUBLIC LIBRARY BOARD
STATEMENT OF CHANGE IN NET FINANCIAL ASSETS
For the Year Ended December 31, 2021
Budget Actual Actual
2021 2021 2020
$$$
(Unaudited)
ANNUAL DEFICIT (31,111)(21,532)(28,919)
Amortization of tangible capital assets 46,111 46,495 46,110
Acquisition of tangible capital assets (15,000)(16,402)(17,850)
Change in prepaid expenses -(25)(132)
INCREASE/(DECREASE) IN NET FINANCIAL ASSETS -8,536 (791)
NET FINANCIAL ASSETS - beginning of year 778 778 1,569
NET FINANCIAL ASSETS - end of year 778 9,314 778
The accompanying notes are an integral part of these financial statements
29
CORPORATION OF THE
MUNICIPALITY OF TWEED
TWEED PUBLIC LIBRARY BOARD
STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2021
2021 2020
$$
CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Annual deficit (21,532)(28,919)
Items not involving cash
Amortization of tangible capital assets 46,495 46,110
Change in non-cash assets and liabilities
Accounts receivable 1,136 983
Prepaid expenses (25)(132)
Accounts payable and accrued liabilities -(537)
Due to Municipality 8,371 (13,229)
Deferred revenue 6,500 (4,297)
Net change in cash from operating activities 40,945 (21)
CAPITAL ACTIVITIES
Acquisition of tangible capital assets (16,402)(17,850)
NET CHANGE IN CASH 24,543 (17,871)
CASH - beginning of year 28,226 46,097
CASH - end of year 52,769 28,226
The accompanying notes are an integral part of these financial statements
30
CORPORATION OF THE
MUNICIPALITY OF TWEED
TWEED PUBLIC LIBRARY BOARD
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2021
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.
31
CORPORATION OF THE
MUNICIPALITY OF TWEED
TWEED PUBLIC LIBRARY BOARD
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2021
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 2021 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.
32
CORPORATION OF THE
MUNICIPALITY OF TWEED
TWEED PUBLIC LIBRARY BOARD
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2021
3.TANGIBLE CAPITAL ASSETS
The net book value of the Board's tangible capital assets are:
Buildings Equipment Computers Books
2021
Totals
2020
Totals
$$$$$$
COST
Balance, beginning of year 876,450 148,386 13,691 80,052 1,118,579 1,113,345
Add: additions during the
year -744 -15,658 16,402 17,850
Less: disposals during the
year ---11,851 11,851 12,616
Balance, end of year 876,450 149,130 13,691 83,859 1,123,130 1,118,579
ACCUMULATED
AMORTIZATION
Balance, beginning of year 240,976 106,570 6,084 36,643 390,273 356,779
Add: additions during the
year 21,911 9,865 2,739 11,980 46,495 46,110
Less: disposals during the
year ---11,851 11,851 12,616
Balance, end of year 262,887 116,435 8,823 36,772 424,917 390,273
NET BOOK VALUE OF
TANGIBLE CAPITAL
ASSETS 613,563 32,695 4,868 47,087 698,213 728,306
4.ACCUMULATED SURPLUS
Accumulated surplus consists of the following:
2021 2020
$$
Surplus
Operations 10,162 1,601
Invested In Capital Assets
Tangible capital assets - net book value 698,213 728,306
708,375 729,907
33
CORPORATION OF THE
MUNICIPALITY OF TWEED
TWEED PUBLIC LIBRARY BOARD
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2021
5.DEFERRED REVENUE
Included in deferred revenue are the following amounts:
2021 2020
$$
Kimberley Foundation grant 4,000 -
Specified donation for books 2,500 -
6,500 -
6.INTER-ENTITY TRANSACTIONS
During the year, the Board entered into transactions with the Municipality of Tweed.
As part of the budgeting process, the Municipality approves a contribution to the Board which is
identified on the Statement of Operations and Accumulated Surplus.
Details of the inter-entity expense transactions are as follows:
2021 2020
$$
Unallocated costs:
Water and sewer 651 846
651 846
In addition, the following services are provided to the Board by the Municipality at no cost:
Payroll services
Rental of land
Building insurance
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.
34