HomeMy Public PortalAbout2022 Tweed Consolidated FSCORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2022
CORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2022
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 - 17
Schedule of Tangible Capital Assets 18
Schedules of Segment Disclosure 19 - 20
TRUST FUNDS
Independent Auditor's Report 21
Statement of Financial Position 23
Statement of Continuity 23
Notes to the Financial Statements 24
LOCAL BOARD
Tweed Public Library Board 25 - 35
The Corporation of the
MUNICIPALITY OF TWEED
255 Melcalf St.. Postal Bag 729
"I\~eed. ON K0K 3J0
I-el.: (6131478-2535
Fax: (613) 478-6457
Entail: inlb iit~ p.t\~ eed.on.ca
Website: ~ \~ \~.t~ eed.ca
faccbook.com/t\~ eedontario
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, 2022, 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, 2022, 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.
Chartered Professional Accountants
Licensed Public Accountants
Peterborough, Ontario
March 29, 2023
CORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At December 31, 2022
2022 2021
$$
FINANCIAL ASSETS
Cash 818,702 2,181,728
Investments (note 2)2,813,326 1,817,362
Accounts receivable 912,461 1,584,947
Taxes receivable 691,922 662,127
TOTAL FINANCIAL ASSETS 5,236,411 6,246,164
LIABILITIES
Accounts payable and accrued liabilities 1,253,633 1,479,421
Deferred revenue - obligatory reserve funds (note 4)65,550 420,265
Deferred revenue - other (note 6)31,329 19,588
OILC temporary loan -1,530,000
Long term debt (note 8)2,207,429 -
Landfill closure and post-closure liability (note 9)1,540,567 1,595,993
TOTAL LIABILITIES 5,098,508 5,045,267
NET FINANCIAL ASSETS 137,903 1,200,897
NON-FINANCIAL ASSETS
Tangible capital assets (note 11)34,634,917 34,132,724
Inventories of supplies 205,957 118,958
Prepaid expenses 54,377 35,663
TOTAL NON-FINANCIAL ASSETS 34,895,251 34,287,345
ACCUMULATED SURPLUS (note 12)35,033,154 35,488,242
The accompanying notes are an integral part of these financial statements
1
CORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED STATEMENT OF OPERATIONS AND ACCUMULATED SURPLUS
For the Year Ended December 31, 2022
Budget Actual Actual
2022 2022 2021
$$$
(Unaudited)
REVENUES
Property taxation 4,417,438 4,439,489 4,308,751
User charges 1,670,779 1,548,182 1,700,343
Government of Canada 451,300 122,067 1,254,103
Province of Ontario 2,854,817 2,515,077 3,462,683
Other municipalities -90,000 28,500
Penalties and interest on taxes 100,000 87,569 98,747
Investment income 67,400 86,016 36,486
Donations 13,024 98,343 56,778
Other grants 316,530 39,308 24,327
Canada Community-Building Fund amounts earned 741,517 741,517 419,000
Gain/(loss) on disposal of tangible capital assets 155,095 33,673 277,132
TOTAL REVENUES 10,787,900 9,801,241 11,666,850
EXPENSES
General government 1,598,405 1,514,507 1,274,548
Protection services 1,789,056 1,687,368 1,626,738
Transportation services 3,820,681 4,048,884 3,742,560
Environmental services 1,422,701 1,430,767 1,930,447
Recreation and cultural services 1,242,167 1,237,244 1,166,812
Planning and development 338,510 337,559 229,542
TOTAL EXPENSES 10,211,520 10,256,329 9,970,647
ANNUAL SURPLUS/(DEFICIT)576,380 (455,088)1,696,203
ACCUMULATED SURPLUS - beginning of year 35,488,242 33,792,039
ACCUMULATED SURPLUS - end of year 35,033,154 35,488,242
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, 2022
Budget Actual Actual
2022 2022 2021
$$$
(Unaudited)
ANNUAL SURPLUS/(DEFICIT)576,380 (455,088)1,696,203
Amortization of tangible capital assets 2,283,520 2,154,920 2,058,196
Purchase of tangible capital assets (4,118,237)(2,899,243)(6,400,223)
Gain on disposal of tangible capital assets (155,095)(33,673)(277,132)
Proceeds on sale of tangible capital assets 350,000 275,803 341,387
Change in inventories of supplies -(86,999)(38,058)
Change in prepaid expenses -(18,714)(4,115)
DECREASE IN NET FINANCIAL ASSETS (1,063,432)(1,062,994)(2,623,742)
NET FINANCIAL ASSETS - beginning of year 1,200,897 1,200,897 3,824,639
NET FINANCIAL ASSETS - end of year 137,465 137,903 1,200,897
The accompanying notes are an integral part of these financial statements
3
CORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2022
2022 2021
$$
CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Annual surplus/(deficit)(455,088)1,696,203
Items not involving cash
Amortization of tangible capital assets 2,154,920 2,058,196
Gain on disposal of tangible capital assets (33,673)(277,132)
Change in landfill closure and post-closure liability (55,426)328,190
Change in non-cash assets and liabilities
Accounts receivable 672,486 278,797
Taxes receivable (29,795)204,561
Inventories of supplies (86,999)(38,058)
Prepaid expenses (18,714)(4,115)
Accounts payable and accrued liabilities (225,788)631,666
Deferred revenue - obligatory reserve funds (354,715)330,631
Deferred revenue - other 11,741 12,297
Net change in cash from operating activities 1,578,949 5,221,236
CAPITAL ACTIVITIES
Purchase of tangible capital assets (2,899,243)(6,400,223)
Proceeds on disposal of tangible capital assets 275,803 341,387
Net change in cash from capital activities (2,623,440)(6,058,836)
INVESTING ACTIVITIES
Redemption of investments 500,000 1,602,506
Purchase of investments (1,495,964)(1,201,199)
Net change in cash from investing activities (995,964)401,307
FINANCING ACTIVITIES
OLIC temporary loan received (repayment)(1,530,000)1,530,000
Debt principal repayments (18,432)(5,000)
Long term debt issued 2,225,861 -
Long term loan receipts -5,000
Net change in cash from financing activities 677,429 1,530,000
NET CHANGE IN CASH (1,363,026)1,093,707
CASH - beginning of year 2,181,728 1,088,021
CASH - end of year 818,702 2,181,728
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, 2022
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, 2022
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.
Canada Community-Building Fund 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, 2022
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
2022
Actual
2021
$$$
One Fund Investments - Bond Fund 993,940 1,120,188 1,102,580
One Fund Investments - High Interest Savings 1,564,245 1,564,245 587,108
Guaranteed investment certificates, maturity dates
from March 20, 2023 to October 5, 2026, interest
rates ranging from 0.35% to 0.85% per annum 128,893 128,893 127,674
2,687,078 2,813,326 1,817,362
7
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2022
3.CREDIT FACILITY AGREEMENT
The Municipality has a revolving credit facility agreement with its main financial institution. The
amount available at any time is limited to $500,000 via an operating loan. Any balance borrowed
will accrue interest at the bank’s prime lending rate plus 0.50% per annum. At December 31, 2022
there was no balance outstanding (2021 - $Nil).
4.DEFERRED REVENUE - OBLIGATORY RESERVE FUNDS
A requirement of the Chartered Professional Accountants Canada Public Sector Accounting
Handbook, is that obligatory reserve funds be reported as deferred revenue. This requirement is in
place as legislation and external agreements restrict how these funds may be used and under
certain circumstances these funds may possibly be refunded. The balances in the obligatory
reserve funds of the Municipality are summarized below:
2022 2021
$$
Canada Community-Building Fund 14,938 377,457
Parkland 50,612 42,808
65,550 420,265
The continuity of deferred revenue - obligatory reserve funds is as follows:
2022 2021
$$
Balance - beginning of year 420,265 89,634
Add amounts received:
Canada Community-Building Fund 375,039 743,586
Parkland 6,750 4,500
Interest 5,013 1,545
386,802 749,631
Less transfer to operations:
Canada Community-Building Fund 741,517 419,000
Balance - end of year 65,550 420,265
8
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2022
5.PENSION AGREEMENTS
Certain employees of the Municipality are eligible members of the Ontario Municipal Employees
Retirement System (OMERS), a multi-employer pension plan.
The Actuarial Opinion contained in the 2022 Annual Report disclosed total actuarial liabilities of
$130,306 million in respect of benefits accrued for service with actuarial assets of $123,628 million
indicating an actuarial deficit of $6,678 million. Because OMERS is a multi-employer plan, any
pension plan surpluses or deficits are a joint responsibility of Ontario municipal organizations and
their employees. As a result, the Municipality does not recognize any share of the OMERS pension
surplus or deficit.
The Municipality's required contributions to OMERS in 2022 were $138,225 (2021 -$123,374).
Some of the employees of the Municipality, who are not members of OMERS, are eligible to be
members of a contributory pension plan. Employer contributions to the plan by the Municipality
during the year amounted to $23,056 (2021 - $28,102). These contributions which match the
employees' contribution for current service, are expense during the year in which services are
rendered and represent the total pension obligation of the Municipality.
6.DEFERRED REVENUE - OTHER
Included in deferred revenue - other are the following amounts:
2022 2021
$$
Deposits and other 31,329 13,088
Library grants and donations -6,500
31,329 19,588
The continuity of deferred revenue - other is as follows:
2022 2021
$$
Balance - beginning of year 19,588 7,291
Deposits and other 31,329 13,088
Library grants and donations -6,500
31,329 19,588
Deposits and other 13,088 7,291
Library grants and donations 6,500 -
19,588 7,291
Balance - end of year 31,329 19,588
9
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2022
7.TRUST FUNDS
Trust funds administered by the Municipality amounting to $11,411 (2021 -$11,386) have not been
included in the Consolidated Statement of Financial Position nor have their operations been
included in the Consolidated Statement of Operations and Accumulated Surplus. As such balances
are held in trust by the Municipality for the benefit of others, they are not presented as part of the
Municipality's financial position or operations.
8.LONG TERM DEBT
2022 2021
$$
Debenture from Ontario Infrastrucutre and Lands Corporation
(OILC). The loan is repayable, by the Municipality, in monthly
blended principal and interest installments of $11,002, with interest
at 4.29% per annum maturing on June 15, 2052.2,207,429 -
(a)The long term debt in (a) issued in the name of the Municipality has been approved by by-law.
The annual principal and interest payments required to service this liability is within the annual
debt repayment limit prescribed by the Ministry of Municipal Affairs and Housing.
(b)Interest paid during the year on long term debt amounted to $47,581 (2021 -$Nil).
(c)The long term debt reported in (a) of this note is repayable as follows:
Principal Interest Total
$$$
2023 38,069 93,956 132,025
2024 39,735 92,290 132,025
2025 41,473 90,552 132,025
2026 43,288 88,737 132,025
2027 45,182 86,843 132,025
2028 and subsequent years 1,999,682 1,234,928 3,234,610
2,207,429 1,687,306 3,894,735
10
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2022
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 $1,540,567 (2021 -$1,595,993). 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 $1,390,677
(2021 - $1,188,988) 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 $1,926,051 as at December 31, 2022 (2021 -$1,986,193).
The remaining capacity of the solid waste landfill sites is estimated at 70,096 m3 (2021 -74,931
m3) which is 12.5% (2021 -13.3%) of the sites' total capacity. The total discounted future cash
flows for closure and post-closure cost is estimated at $1,926,051 (2021 -$1,986,193) as at
December 31, 2022 using an inflation rate of 2.20% (2021 - 1.67%) and a discount rate of 4.31%
(2021 - 3.14%).The Municipality 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.
11
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2022
11.TANGIBLE CAPITAL ASSETS
The net book value of the Municipality's tangible capital assets are:
2022 2021
$$
General
Land and land improvements 1,780,090 1,699,434
Buildings 3,365,857 2,955,465
Vehicles 981,381 1,116,006
Machinery and equipment 1,895,413 1,678,585
Infrastructure
Buildings 768,273 878,048
Roads 9,721,723 9,536,859
Underground and other networks 8,165,031 3,585,169
Bridges and other structures 7,744,533 7,381,903
34,422,301 28,831,469
Assets under construction 212,616 5,301,255
34,634,917 34,132,724
For additional information, see the Consolidated Schedule of Tangible Capital Assets.
During the year there were no write-downs of assets (2021 -$Nil) and no interest capitalized (2021
-$Nil).
Tangible capital assets allocated by segment are as follows:
2022 2021
$$
General government 1,243,342 1,439,661
Protection services 847,238 925,494
Transportation services 19,300,052 18,628,269
Environmental services 10,174,932 10,039,791
Recreation and cultural services 3,056,318 3,083,926
Planning and development 13,035 15,583
34,634,917 34,132,724
12
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2022
12.ACCUMULATED SURPLUS
Accumulated surplus consists of the following:
2022 2021
$$
Surplus/(Deficit)
Operating (344,369)-
Unfunded landfill closure and post-closure costs (1,540,567)(1,595,993)
Library board 10,646 10,162
(1,874,290)(1,585,831)
Invested In Capital Assets
Tangible capital assets - net book value 34,634,917 34,132,724
Long term debt (2,207,429)-
Unfunded capital - Municipal building -(9,528)
Unfunded capital - Fire hall -(58,900)
Unfunded capital - Lagoon system upgrades -(2,151,403)
Unfunded capital - Bridges and roads (110,022)-
32,317,466 31,912,893
Surplus 30,443,176 30,327,062
Reserves
Working funds -531,167
General government 219,439 428,355
Protection services 351,566 285,841
Transportation services 596,779 773,171
Water and sewer 1,141,811 1,257,312
Recreation services 632,859 442,953
Community improvement plan 37,654 45,154
Total Reserves 2,980,108 3,763,953
Reserve Funds
Transportation services 219,193 208,239
Landfill 1,390,677 1,188,988
Total Reserve Funds 1,609,870 1,397,227
35,033,154 35,488,242
13
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2022
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.
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
2022 2022 2021
$$$
(Unaudited)
Salaries and benefits 2,755,054 2,693,885 2,543,554
Interest charges 96,436 47,581 1,816
Materials 2,332,156 2,638,334 2,269,010
Contracted services 2,297,845 2,264,477 2,701,974
Rents and financial 66,590 75,155 64,327
External transfers 379,919 381,977 331,770
Amortization 2,283,520 2,154,920 2,058,196
10,211,520 10,256,329 9,970,647
15.OPERATIONS OF SCHOOL BOARDS AND THE COUNTY OF HASTINGS
During 2022, requisitions were made by the County of Hastings and School Boards requiring the
Municipality to collect property taxes and payments in lieu of property taxes on their behalf. The
amounts collected and remitted are as follows:
School
Boards County
$$
Property taxes 1,225,945 1,931,062
Taxation from other governments 1,608 8,430
Amounts requisitioned and remitted 1,227,553 1,939,492
These amounts have not been included in the Consolidated Statement of Operations and
Accumulated Surplus.
16.COMPARATIVE FIGURES
Certain comparative figures were restated, where required, to conform with the current year
presentation.
14
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2022
17.BUDGET FIGURES
The budget, approved by the Municipality, for 2022 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 9,551,248 9,288,075
Capital 3,853,575 4,116,748
Total Council approved budget 13,404,823 13,404,823
Less: Tangible capital assets capitalized -(4,118,237)
Add: Amortization of tangible capital assets -2,283,520
Less: Principal repayment of long term debt -(63,224)
Less: Transfers to/from reserves and reserve funds (2,299,113)(1,293,872)
Gain on disposition of tangible capital assets 155,095 -
Proceeds on disposal of tangible capital assets (350,000)-
Proceeds of long term debt (209,100)-
Change in landfill closure -(19,257)
Libary board budget 56,145 56,145
Change in unfunded capital -(68,428)
Adjustments for presentation purposes 30,050 30,050
Adjusted budget per Consolidated Statement of Operations 10,787,900 10,211,520
15
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2022
18.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. The
Municipality of Tweed also entered into a joint services agreement on February 1, 2021 to provide
for the joint enforcement and administration of By-Laws with the Town of Deseronto, Township of
Madoc, Township of Stirling-Rawdon and Township of Tyendinaga.
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.
16
CORPORATION OF THE MUNICIPALITY OF TWEED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended December 31, 2022
19.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:
2022 2021
$$
Revenue
Ticket sales 22,367 12,211
Fundraising 20,834 8,858
Advertising 14,700 15,750
Donations 4,081 -
Miscellaneous 1,512 202
63,494 37,021
Expenses
Equipment and uniforms 15,112 22,674
Travel 12,707 4,393
Alcohol cost of sales and licence 7,634 3,475
Referees and time keepers 6,210 3,710
Merchandise for sale 2,883 5,939
League fees 2,472 2,000
Supplies 1,086 1,895
Ice rental 566 666
Logos -3,749
48,670 48,501
Annual surplus (deficit)14,824 (11,480)
17
CORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED SCHEDULE OF TANGIBLE CAPITAL ASSETS
For the Year Ended December 31, 2022
General Infrastructure
Land and Land
Improvements Buildings Vehicles
Machinery
and
Equipment Buildings Roads
Underground
and Other
Networks
Bridges and
Other
Structures
Assets
Under
Construction Totals
$$$$$$$$$$
COST
Balance, beginning of year 2,450,940 4,905,477 3,549,804 2,928,420 2,947,125 22,137,207 5,811,623 10,392,265 5,301,255 60,424,116
Add: additions during the
year 38,130 -48,622 427,666 -1,258,995 5,958 -1,119,872 2,899,243
Less: disposals during
the year 183,733 5,951 111,971 107,808 -556,655 386 280,749 -1,247,253
Internal transfers 332,366 566,509 ----4,742,558 567,078 (6,208,511)-
Balance, end of year 2,637,703 5,466,035 3,486,455 3,248,278 2,947,125 22,839,547 10,559,753 10,678,594 212,616 62,076,106
ACCUMULATED
AMORTIZATION
Balance, beginning of year 751,506 1,950,012 2,433,798 1,249,835 2,069,077 12,600,348 2,226,454 3,010,362 -26,291,392
Add: additions during the
year 106,107 156,117 170,536 204,529 109,775 1,074,131 168,654 165,071 -2,154,920
Less: disposals during
the year -5,951 99,260 101,499 -556,655 386 241,372 -1,005,123
Balance, end of year 857,613 2,100,178 2,505,074 1,352,865 2,178,852 13,117,824 2,394,722 2,934,061 -27,441,189
NET BOOK VALUE OF
TANGIBLE
CAPITAL ASSETS 1,780,090 3,365,857 981,381 1,895,413 768,273 9,721,723 8,165,031 7,744,533 212,616 34,634,917
18
CORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED SCHEDULE OF SEGMENT DISCLOSURE
For the Year Ended December 31, 2022
General
Government
Protection
Services
Transportation
Services
Water and
Sewer
Other
Environmental
Services
Recreation and
Cultural
Services
Planning and
Development Consolidated
$$$$$$$$
Revenues
Property taxation 271,050 1,103,968 1,973,728 -258,818 654,318 177,607 4,439,489
User charges 145,837 39,278 27,910 881,961 241,962 181,428 29,806 1,548,182
Government transfers - operating 152,022 534,494 940,831 -96,710 416,237 142,213 2,282,507
Government transfers - capital
Other municipalities
-
90,000
-
-
321,327
-
33,310
-
-
-
-
-
-
-
354,637
90,000
Penalties and interest on taxes 87,569 ------87,569
Investment income 59,808 -2,961 -23,247 --86,016
Donations 2,743 61,242 ---34,358 -98,343
Other grants 33,808 ----5,500 -39,308
Canada Community-Building Fund
amounts earned --741,517 ----741,517
Gain/(loss) on disposal of tangible
capital assets 92,070 -(52,088)--(6,309)-33,673
Total revenues 934,907 1,738,982 3,956,186 915,271 620,737 1,285,532 349,626 9,801,241
Expenses
Salaries and benefits 675,142 97,822 927,579 95,500 197,038 542,157 158,647 2,693,885
Interest charges ---47,581 ---47,581
Materials 535,487 126,081 1,361,601 172,406 13,943 343,469 85,347 2,638,334
Contracted services 199,125 1,121,026 318,029 304,666 172,395 79,514 69,722 2,264,477
Rents and financial 57,713 -4,265 1,143 3,068 566 8,400 75,155
External transfers 8,500 264,184 --96,398 -12,895 381,977
Amortization 38,540 78,255 1,437,410 326,629 -271,538 2,548 2,154,920
Total expenses 1,514,507 1,687,368 4,048,884 947,925 482,842 1,237,244 337,559 10,256,329
Net surplus/(deficit)(579,600)51,614 (92,698)(32,654)137,895 48,288 12,067 (455,088)
19
CORPORATION OF THE MUNICIPALITY OF TWEED
CONSOLIDATED SCHEDULE OF SEGMENT DISCLOSURE
For the Year Ended December 31, 2021
General
Government
Protection
Services
Transportation
Services
Water and
Sewer
Other
Environmental
Services
Recreation and
Cultural
Services
Planning and
Development Consolidated
$$$$$$$$
Revenues
Property taxation 254,922 1,089,998 1,990,118 -256,209 551,065 166,439 4,308,751
User charges 152,592 91,410 45,403 879,369 351,611 142,158 37,800 1,700,343
Government transfers - operating 152,180 547,236 1,005,656 -110,359 615,302 84,979 2,515,712
Government transfers - capital
Other municipalities
-
15,000
-
-
134,136
-
2,066,938
-
-
-
-
13,500
-
-
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 -18,511 ---38,267 -56,778
Other grants 15,181 6,000 ---3,146 -24,327
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 998,397 1,753,155 3,578,362 2,946,307 737,973 1,363,438 289,218 11,666,850
Expenses
Salaries and benefits 663,866 83,121 885,690 95,721 191,656 485,773 137,727 2,543,554
Interest charges ------1,816 1,816
Materials 379,591 115,996 1,209,352 106,337 20,219 368,826 68,689 2,269,010
Contracted services 149,151 1,101,232 251,291 621,235 529,169 44,916 4,980 2,701,974
Rents and financial 38,355 -4,328 9,472 3,102 670 8,400 64,327
External transfers 8,000 227,638 --88,614 -7,518 331,770
Amortization 35,585 98,751 1,391,899 264,922 -266,627 412 2,058,196
Total expenses 1,274,548 1,626,738 3,742,560 1,097,687 832,760 1,166,812 229,542 9,970,647
Net surplus/(deficit)(276,151)126,417 (164,198)1,848,620 (94,787)196,626 59,676 1,696,203
20
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, 2022,
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 financial statements present fairly, in all material respects, the financial position of the
Trust Funds as at December 31, 2022, 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.
Chartered Professional Accountants
Licensed Public Accountants
Peterborough, Ontario
March 29, 2023
CORPORATION OF THE MUNICIPALITY OF TWEED
TRUST FUNDS
STATEMENT OF FINANCIAL POSITION
At December 31, 2022
Recreation
Associations
Santa Claus
Parade Fund
2022
Total
2021
Total
$$$$
FINANCIAL ASSETS
Cash -953 953 1,008
Investments (note 2)10,458 -10,458 10,373
Accounts receivable ---5
10,458 953 11,411 11,386
FUND BALANCES 10,458 953 11,411 11,386
TRUST FUNDS
STATEMENT OF CONTINUITY
For the Year Ended December 31, 2022
Recreation
Associations
Santa Claus
Parade Fund
2022
Total
2021
Total
$$$$
BALANCES - beginning of year 10,378 1,008 11,386 11,108
RECEIPTS
Donations -1,000 1,000 250
Interest 80 -80 28
80 1,000 1,080 278
EXPENSES
Parade costs -1,050 1,050 -
Bank charges -5 5 -
-1,055 1,055 -
BALANCES - end of year 10,458 953 11,411 11,386
The accompanying notes are an integral part of these financial statements
23
CORPORATION OF THE MUNICIPALITY OF TWEED
TRUST FUNDS
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2022
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 3.35% and maturity of November 15, 2023.
24
CORPORATION OF THE MUNICIPALITY OF
TWEED
TWEED PUBLIC LIBRARY BOARD
FINANCIAL STATEMENTS
DECEMBER 31, 2022
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, 2022, 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, 2022, 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.
Chartered Professional Accountants
Licensed Public Accountants
Peterborough, Ontario
March 29, 2023
CORPORATION OF THE MUNICIPALITY OF TWEED
TWEED PUBLIC LIBRARY BOARD
STATEMENT OF FINANCIAL POSITION
At December 31, 2022
2022 2021
$$
FINANCIAL ASSETS
Cash 25,168 52,769
Accounts receivable 1,665 3,168
TOTAL FINANCIAL ASSETS 26,833 55,937
LIABILITIES
Due to Municipality (note 6)17,035 40,123
Deferred revenue (note 5)-6,500
TOTAL LIABILITIES 17,035 46,623
NET FINANCIAL ASSETS 9,798 9,314
NON-FINANCIAL ASSETS
Tangible capital assets (note 3)672,957 698,213
Prepaid expenses 848 848
TOTAL NON-FINANCIAL ASSETS 673,805 699,061
ACCUMULATED SURPLUS (note 4)683,603 708,375
The accompanying notes are an integral part of these financial statements
28
CORPORATION OF THE MUNICIPALITY OF TWEED
TWEED PUBLIC LIBRARY BOARD
STATEMENT OF OPERATIONS AND ACCUMULATED SURPLUS
For the Year Ended December 31, 2022
Budget Actual Actual
2022 2022 2021
$$$
(Unaudited)
REVENUES
Municipality of Tweed (note 6)157,080 157,080 163,591
Province of Ontario 15,776 15,373 15,859
Government of Canada 2,300 4,029 1,296
Other grants 23,280 5,500 3,146
Donations 11,024 16,631 16,316
Fines and other fees 3,765 2,859 1,670
Other -123 17
TOTAL REVENUES 213,225 201,595 201,895
EXPENSES
Salaries and benefits 161,640 148,996 151,476
Electronic and other resources 1,500 4,834 3,666
Internet sustainability 1,500 1,489 1,460
Professional development 1,500 629 132
Supplies and maintenance 9,950 7,634 7,301
Office and administration 6,135 4,569 3,907
Specific projects 1,000 2,319 673
Utilities 15,000 9,829 8,317
Amortization 46,495 46,068 46,495
TOTAL EXPENSES 244,720 226,367 223,427
ANNUAL DEFICIT (31,495)(24,772)(21,532)
ACCUMULATED SURPLUS - beginning of year 708,375 729,907
ACCUMULATED SURPLUS - end of year 683,603 708,375
The accompanying notes are an integral part of these financial statements
29
CORPORATION OF THE MUNICIPALITY OF TWEED
TWEED PUBLIC LIBRARY BOARD
STATEMENT OF CHANGE IN NET FINANCIAL ASSETS
For the Year Ended December 31, 2022
Budget Actual Actual
2022 2022 2021
$$$
(Unaudited)
ANNUAL DEFICIT (31,495)(24,772)(21,532)
Amortization of tangible capital assets 46,495 46,068 46,495
Acquisition of tangible capital assets (15,000)(20,812)(16,402)
Change in prepaid expenses --(25)
INCREASE IN NET FINANCIAL ASSETS -484 8,536
NET FINANCIAL ASSETS - beginning of year 9,314 9,314 778
NET FINANCIAL ASSETS - end of year 9,314 9,798 9,314
The accompanying notes are an integral part of these financial statements
30
CORPORATION OF THE MUNICIPALITY OF TWEED
TWEED PUBLIC LIBRARY BOARD
STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2022
2022 2021
$$
CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Annual deficit (24,772)(21,532)
Items not involving cash
Amortization of tangible capital assets 46,068 46,495
Change in non-cash assets and liabilities
Accounts receivable 1,503 1,136
Prepaid expenses -(25)
Due to Municipality (23,088)8,371
Deferred revenue (6,500)6,500
Net change in cash from operating activities (6,789)40,945
CAPITAL ACTIVITIES
Acquisition of tangible capital assets (20,812)(16,402)
NET CHANGE IN CASH (27,601)24,543
CASH - beginning of year 52,769 28,226
CASH - end of year 25,168 52,769
The accompanying notes are an integral part of these financial statements
31
CORPORATION OF THE MUNICIPALITY OF TWEED
TWEED PUBLIC LIBRARY BOARD
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2022
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.
32
CORPORATION OF THE MUNICIPALITY OF TWEED
TWEED PUBLIC LIBRARY BOARD
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2022
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 2022 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.
33
CORPORATION OF THE MUNICIPALITY OF TWEED
TWEED PUBLIC LIBRARY BOARD
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2022
3.TANGIBLE CAPITAL ASSETS
The net book value of the Board's tangible capital assets are:
Buildings Equipment Computers Books
2022
Totals
2021
Totals
$$$$$$
COST
Balance, beginning of year 876,450 149,130 13,691 83,859 1,123,130 1,118,579
Add: additions during the
year --4,935 15,877 20,812 16,402
Less: disposals during the
year ---12,327 12,327 11,851
Balance, end of year 876,450 149,130 18,626 87,409 1,131,615 1,123,130
ACCUMULATED
AMORTIZATION
Balance, beginning of year 262,887 116,435 8,823 36,772 424,917 390,273
Add: additions during the
year 21,911 7,944 3,726 12,487 46,068 46,495
Less: disposals during the
year ---12,327 12,327 11,851
Balance, end of year 284,798 124,379 12,549 36,932 458,658 424,917
NET BOOK VALUE OF
TANGIBLE CAPITAL
ASSETS 591,652 24,751 6,077 50,477 672,957 698,213
4.ACCUMULATED SURPLUS
Accumulated surplus consists of the following:
2022 2021
$$
Surplus
Operations 10,646 10,162
Invested In Capital Assets
Tangible capital assets - net book value 672,957 698,213
683,603 708,375
34
CORPORATION OF THE MUNICIPALITY OF TWEED
TWEED PUBLIC LIBRARY BOARD
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2022
5.DEFERRED REVENUE
Included in deferred revenue are the following amounts:
2022 2021
$$
Kimberley Foundation grant -4,000
Specified donation for books -2,500
-6,500
6.INTER-ENTITY TRANSACTIONS
During the year, the Board entered into transactions with the Municipality of Tweed.
As part of the budgeting process, the Municipality approves a contribution to the Board which is
identified on the Statement of Operations and Accumulated Surplus.
Details of the inter-entity expense transactions are as follows:
2022 2021
$$
Unallocated costs:
Water and sewer 903 651
903 651
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.
35