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S7\ - MUNICIPALITY OF ( ylaririqton ONTARIO Corporation of the Municipality of Clarington Consolidated 1993 Financial Report AUDITORS' REPORT To the Members ol Council, Inhabitants and Ratepayers ol the Corporation ol the Municipality ol Clarington (formerly the Corporation ol the Town ol Newcastle): Wo have audited the consolidated balance shoot ol the Corporation ol the Municipality ol Clarington as at December 31, 1993 and the consolidated statement ol operations lor the year then ended. These financial statements arc the responsibility ol the Municipality's management. Our responsibility is to express on opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are Ircc ol material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and signilicanl estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, those financial statements present fairly, in all material respects, the financial position ol the Municipality as at December 31. 1993 and the results ol its operations lor the year then ended in accordance with accounting principles disclosed in Note 1 to the linancial statements. Dcloitte & Touche Chartered Accountants April 29. 1994 ' , MUNICIPALITY OF CLARINGTON CONSOLIDATED STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31.1993 Actual 1993 Actual 1992 SOURCES OF FINANCING Taxation and user charges Residential and farm taxation $44,999,163 $41,686,737 Commercial, industrial and business taxation 10,340,751 10,407,361 Taxation Irom other governments 2,178,360 1,710,763 . User charges 2,825,658 2,828,624 Deduct - Amounts received or receivable receivable for region and school boards (Note 2) (41,908,961) (39,537,328) Grants Government ol Canada 5,103 3,801 Province of Ontario 3,861,232 3,895,054 Other Municipalities 5,836 -- Other Contributions from developers 2,113,334 2,930,336 Investment income 1,394,022 1,842,945 Sale of land and equipment -- 20,098 Penalty and interest on taxes 1,121,954 908,018 Fines 5,252 2,424 Recreational land ■ cash-in-lieu 82,258 127,718 Donations and contributions from others 7,715,282 575,977 Proceeds from Issue of long term liabilities 400,000 -- MUNICIPAL FUND BALANCES, BEGINNING OF YEAR (Note 7) To be used to offset taxation or user charges 2,350,652 2,484,907 Unexpended capital financing 92,183 85,930 TOTAL FINANCING AVAILABLE DURING THE YEAR $37,582,079 $29,973,365 APPLIED TO Current operations (Note 9 and 11) General government $3,536,676 $3,500,096 Protection to persons and property 2,705,302 2,698,131 Transportation services 5.623,961 5,087,654 Environmental services 1,182,219 1,167,253 Health services 104,191 121,060 Recreation and cultural services 4,576,897 4,447,980 Planning and development 1,525,463 1,469,999 19,254,709 18,492,173 Capital General government 805,534 229,453 Protection to persons and property 34,437 50,711 Transportation services 4,058,588 3,584,447 Environmental services -- 4,250 Health services 14,642. 18,413 Recreation and cultural services 642,238 1,013,696 Planning and development 86,767 191,386 5,642,206 5,092,356 NET APPROPRIATIONS TO RESERVES AND RESERVE FUNDS 9,983,891 3,946,001 DEVELOPMENT CHARGES TRANSFERRED TO HYDRO COMMISSION (Note 12) 164,181 MUNICIPAL FUND BALANCES, END OF YEAR (Note?) To bo used to offset taxation or user charges 2,518,706 2,350,652 Unexpended capital financing 18,386 92,183 TOTAL APPLICATIONS DURING THE YEAR $37,582,079 $29,973,365 The accompanying notes arc an integral part ol this linancial statement. CONSOLIDATED BALANCE SHEET ASSETS 1993 1992 UNRESTRICTED Cash $6,651,365 $4,638,845 Taxes receivable . 7,801,366 6,328,599 User charges receivable 732,360 599,961 Accounts receivable 1,122,576 . 840,295 Other current assets 426,633 487,902 RESTRICTED 16,734,300 12,895,602 Cash 24,810,657 15,917,598 Due Irom own funds 952,313 665,380 Accounts receivable 662,461 26,425,431 574,617 CAPITAL OUTLAY FINANCED BY LONG-TERM LIABILITIES AND TO BE RECOVERED IN FUTURE YEARS 17,157,595 (Mole t (b)) 5.072,333 5.005.682 $48,232.064 $35.058.879 LIABILITIES CURRENT LIABILITIES Accounts payable and .accrued liabilities $ 3,804,226 $ 1,092,069 Other current liabilities NET LONG-TERM LIABILITIES 4,203,496 8,167,722 3,247,267 " 5,139,336 (Mole G) CONTINGENCES (Nolo 10) FUND BALANCES, END OF YEAR To tie used lo ollsel taxation or user 5,072,333 5,005,682 charges (Note 7) Unexpended capital financing 2,510,706 2,350,652 (Nole 7) 10,306 92,103 Her,elves (Mule It) 6,029,486 5,313,431 llesave lunds (Mole Ii) 26,425,431 17,157,595 $40,232,064 $35,058,079 Un. 1 ,'Kroiii|i:iiiyinrj noies an: an integral par I of llus linancial Statement MOI l-S TO THE CONSOLIDATED FINANCIAL STATEMENTS PECEMUEfUUm 1, ACCOUNTING POLICIES I lie consolulaled linancial stnlimiimlr, ol Ihu Corporation an: ilto lepiesentiilioii ul imiiiagnmtinl propnrod in nccottlancii with ac i minting pnlii'ii::', pro'll rihud lot Ontario municipalities liy llm Ministry ol Munn ipal All.ms Sinon pmrir.tr diilunninnlion ol nun/ ,iv 11. .m l li.ihililii". is (IcpuiKlenl upon lulum iivenlc, llm |.h n. il. n ul pi'ii.nil. Imam i.il r l.ileinunli: iiiicin.r.anly involves ii.r a e ul i".Imi.ilr. .mil appiDiimaliuns Uiui.ii linvii linen ni ul" a 1 ii. i. iirliil iinliji'iiieiils (a) (i) Basis ol Consolidation These consolidated linancial statements rellect Ihe assets, assets, liabilities, sources ol linancing and expenditures ol Ihe revenue fund, capital lund, reserve lunds and reserves reserves and include the activities ol all committees ol Council ancf tho following local boards, which arc under Ihe control ol Council: - Clarington Public Library Board - Clarke Musoum and Archives - Bowmanvillo Musoum Board - Board ol Management lor Iho Bowmanvillo Central Business District Improvement Atca - Board ol Management lor the Newcastle Central Business District Improvement Area - Board ol Management lor the Orono Central Business District Improvement Area - Orono Arena and Community Centre Board - Newcastle Arena Board - Newcaslle Community Hall Board All inlerlund assets and liabilities and sources ol linancing linancing and expenditures have been eliminated with the exception exception of loans or advances between the reserve lunds and any other lund ol Ihe municipality and the resulting interest income and expenditures. (ii) Non-consolidated Entity These consolidated linancial statomonls do not include tho assets, liabilities, sources ol linancing and expenditures expenditures ol tho Clarington Hydro Electric Commission. (iii) Accounting for Region and School Board transactions Tho taxation and other revenues, expenditures, assets and liabilities with respect to Iho operations ol the school boards and tho Region ol Durham are not rolloclod in Iho "Municipal Fund Balances" ol these linancial statements. Overlovies (underlovies) are reported on the "Consolidated "Consolidated Balance Sheet" as 'other current liabilities" ("other current current assets"). (iv) Trust lunds and their related operations administered by Ihe municipality arc not consolidated, but arc reported separately on Iho "Trust Funds Consolidated Statement ol Continuity and Consolidated Balance Sheet". (b) Basis of Accounting (i) Sources ol linancing and expenditures are reported on the accrual basis ol accounting with Ihe exception ol prin- • cipal charges on long-term liabilities which are charged against operations in Ihe periods in which they are paid. (ii) The accrual basis ol accounting recognizes revenues as they become available and measurable; expenditures are recognized as Ihey are incurred and measurable as a result result ol receipt ol goods or services and tho creation ol a legal obligation to pay. . (iii) Fixed Assets Tho historical cost and accumulated depreciation lor lixed assets arc not recorded lor municipal purposes. Fixed assets are reported as an expenditure on the "Consolidated "Consolidated Statement ol Operations" in the year of acquisition. acquisition. (iv) Capital Outlay to be Recovered in Future Years "Capital oullay to.be recovered in luture years," Which represents the outstanding principal portion ol unmatured long-term liabilities lor municipal expenditures or capital lunds transferred to other organizations, is reported on the "Consolidated Balance Sheet". 2. OPERATIONS OF SCHOOL BOARDS AND THE REGION OF DURHAM . Further to Nolo 1 (a) (iii), tho taxation, grants, other revenues, expenditures and overlevics (undcrlevics) ol the school boards and Iho Region ol Durham arc comprised ol the following: Taxation and user charges School Boards $31,806,942 Region $10,102,019 Requisitions 31.798.648 11 286 808 Overlovies (Underlevies) for current year $ 8,294 $(1,184,789) Overlovies, beginning ol year 7.352 1,343,951 Overlovies, end olycar $ 15,646 $ 159,162 3. TRUST FUNDS Trust lunds administered by the municipality amounting to $340,712 ( 1992 - S313,683) have not been included in the "Consolidated "Consolidated Balance Sheel" nor have their operations been included included in the "Consolidated Statement ol Oporalions". 4. PENSION AGREEMENTS Tho municipality makes contributions to tho Ontario Municipal Employees' Retirement Fund (OMERS), which is a multi- omployer plan, on bohall of 179 members (1992 - 184 members) members) of its stall. Tho plan is a dotined benolil plan which specifics specifics Ihe amount ol Iho retiromonl benolil to bo received by Iho employees based on Iho length ol service and rales ol pay. The amount contributed lo OMERS lor .1993 was $421,188 (1992 - $433,066) lor current service and is included as an expenditure expenditure on tho "Consolidated Statement ol Oporalions". 5. LIABILITY FOR VESTED SICK LEAVE BENEFITS During the 1993 fiscal year, Ihe municipality negotiated an agreemonl lo terminate Iho sick leave benefit plan which had boon in effect lor many years. Tho municipality agreed lo pay lo those employees covered by the plan and who had at least five years service with Iho Corporation a cash oquivalonl ol 50% ol sick leave days accumulated to July 1, 1993 to a maximum ol 120 days ol salary. Remuneration lor Iho buying out ol sick days idontiliod will be available lo Iho employee at any timo up to tho lime that tho omployoo either leaves the Corporation or retires, at the rate ol remuneration in cllcct at July 1, 1993. The liability lor remaining outstanding accumulated days, lo the extent lhal they have vested and could bo taken in cash by an employee on terminating, amounted lo $210,450 (1992 - $542,941) at the end ol the year. An amount ol $ nil (1992 - $257,894) has boon provided lor this past service liability and is reported on Iho "Consolidated Balance Shoot", included in ro- sorvos. An amount ol $403,739 (1992 - $65,870) was transferred transferred Iront tho reserve to assist in linancing payments made during tho current year and is reported on tho 'Consolidated Statement ol Oporalions" and is included in "Not appropriations to reserves and reserve funds". The anticipated payments over Iho next live years lo employees who arc eligible to retire are: 1994 1995 1996 1997 1998 Tolal _ -- -- $15,105 $19,390 -- $34,495 G. NET LONG-TERM LIABILITIES (a) Tho balance ol not liabililics reported reported on Iho "Consolidated Balance Balance Sheet" is made up ol Iho following: following: 1993 1992 Tolal long-term liabilities incurred by Iho municipalily including those incurred on bohall ol school boards, oilier municipalities municipalities and Iho Clarington Hydro Electric Commission and outstanding outstanding at Iho end ol Ihe year amount lo $ 613,333 $ 303,512 In addition, Iho municipalily has assumed responsibility 1er payment payment ol principal and Interest ' charges on certain long-term liabilities liabilities issued by other municipalities municipalities At Iho end ol Iho year, Ihu outstanding principal amount ol this liability is 6,132,377 5,010,426 Ol the long term liabilities shown above, the responsibility 1er payment payment ol ptincip.il and Interest charges has boon assumed by school boards, the Clarington Hydro Hydro Electric Commission, and oilier oilier municipnlilios. At Iho end ol llm year, tho oulslnndmj princl- pal amount ol litis liability is (1,GIG,357) (1,021,426) Ol llm long term liabilities shown above, tin: responsibility lot payment payment ol principal, and Interest charges lor tile dialling» and shoreline ptopuMy assistance loans has boon assumed by individuals individuals At tho mid ol Ihu year, llm outstanding principal amount ol litis liability IS (57,020) (80.030) Net long term liabilities, end ul year $5,072,333 $5.005,002. (b) Ol the not long-term liabililics reported in (a) ol this role. $2,230,157 in principal payments arc payable from 1994 lo 1998; $2,842,176 Irom 1999 to 2003; 1994 1999 to to From general 1998 2202 municipal revenues $2,063,490 $2,775,510 From benofitting landowners 166.667 66.666 $2,230,157 $2,842,176 (c) Included in 'Not long-term liabilities" on the "Consolidated Balance Shcol" is an amount ol $32,869 (1992 - $47,249) payable in United Stales dollars, which was convened into Canadian dollars at tho rato ol exchange prevailing when Iho liability was incurred. II tho liability is converted into Canadian dollars at the exchange rate prevailing at December 31, 1993, the liability would bo increased by $9,713 (1992 -$11,295). (d) The long-term liabililics in (a) issued in tho name ol Iho municipality municipality have toccivod approval ol the Ontario Municipal Board lor thoso approved on or, bolorc December 31, 1992. Those approved alter January 1, 1993 have been approved by by-law. Tho annual principal and interest payments required required to service these liabilities are within the annual dob! repayment limit prescribed by Ihe Ministry ol Municipal Allairs. Allairs. (e) The municipality is contingently liable 1er long-term liabilities with respect lo lilo drainage and shoreline properly assis- 1 lance loans, and lor those lor which Iho responsibility lor Iho payment ol principal and interest has boon assumed by other other municipalities, school boards and tho Clarington Hydro Electric Commission. Tho tolal amount oulslanding as at December 31, 1993 is $1,673,377 (1992 - $1,108,256) and is not recorded on Iho "Consolidated Balance Sheet". (I) Included in "Not long-term liabilities" on tho "Consolidated Balance Sheet" is a loan ol $163,333 (1992 - $186,667) payable lo Ministry ol Municipal Allairs, and a loan ol $70,000 (1992 - $80,000) payable to Ontario Hydro under the Ontario Housing Action Program. These loans which relate relate to the Courlico Storm Water Facilities Project, arc interest interest Irco and repayable over liftcen years. Payments commenced commenced in 1986. Tho lunds lo repay those loans are lo bo provided Irom a Proscribed Plan Annuity hold by the Town, issued by Iho developers, pursuant lo a development agreement. agreement. 7. MUNICIPAL FUND BALANCES AT THE,END OF THE YEAR (a) The balances on the 'Consolidated Statement ol Operations" Operations" ol municipal equity ol $2,537,092 (1992 - $2,442,835) at the end ol the year is comprised ol Iho following: .1222 1992 for general reduction of taxation for general reduction of user $2,410,479 $2,327,004 charges for benofitting landowners 112,314 107,209 related to special charges and special areas I 4.087) (83.551) 2.518,705 2.350.552 funds available 1er the acquisition ol lixed assets 18 386 92.183 $2,537,092 $2,442,835 (b) Approval ol Ihe Ontario Municipal Board has boon obtained for those pending issues ol long-term liabililics and commitments commitments to bo linanccd by revenues beyond tho term ol council council and approved on or before Docombor 31, 1992. Thoso approved altor January 1, 1993 have boon approved by bylaw. bylaw. The principal and interest payments required to service those pending issues and commitments are within tho debt repayment limit prescribed by the Ministry ol Municipal Af- lairs. (c) The balance available 1er Iho general reduction ol laxation 1er Ihe liscal year ending December 31, 1993 has been reduced reduced by an amount ol $160,173 (1992 - $112,017) transferred transferred to the Reserves and Reserve Funds as authorized by Report #TR-32-94, dated June 1994, as follows: Name ol Reserve/Reserve Fund Amount ol Transfer Professional Fees Reserve $ 52,290 General Capital Reserve 9,958 Tax Write ell Reserve 7,300 Reserve Fund 1er Main Library 50,000 Reserve Fund forCourtice Library 5,625 Reserve Fund 1er Economic Development 35,000 $ 160,173 Had this reduction not been mode, tho balance available for tho general reduction of taxation would have shown a surplus surplus ol $2,570,652 (1992 - $2,439,021). 8. RESERVES AND RESERVE FUNDS The tolal balances ol reserves and reserve lunds ol $6,029,486 (1992 - $5,313,431) and $26,425,431 (1992 - $17,157,595), respectively, are made up oi Ihe following: 1993 1992 Reserves set aside for spccilic purpose by Council 1er: Working capital $ 722,852 $ 733,798 Taxwrite-oif 220,072 212,773 Sick leave (45,845) 257,894 Other cultural 46,317 48,664 Acquisition of fixed assets 4,811,501 3,263,476 Building Maintenance and Construction 18,474 14,474 Technical Services 7,166 • 9,486 Logal/Consulting Issues 122,388 712,866 Community Services Development 10,000 10,000 Election Expenses 75,000 50,000 Firelighters Co-Training 41.561 -- $6,029,486 $5,313,431 Reserve lunds set aside 1er spccilic purpose by Council 1er: Courtice O.H.A.P. $ 30,727 $ 29,249 Recreation programs and lacililies 2,181,784 682,112 Debenture repayment 823,907 690,208 Industrial development 423,987 350,900 Other cultural 172,714 143,474 Acquisition ol lixed assets 1,045,706 872,723 Bowmanvillo Waterfront 4,271 16,942 Municipal Housing Study 3,076 5,946 Newcastle Waterfront Study 52,862 76,120 Bowmanvillo GO Rail (492) 6,544 Solina Hall Access Project 23,184 -- 4,761,726 2,874,218 Reserve lunds sot aside 1er spccilic purpose by legislation, regulation or agreements: Park purposes 2,007,222 2,511,667 Lot levies and read contributions 9,140,397 9,981,034 Parking lacililies 263,454 231,256 Development Charges 2,706,110 1,559,420 Fire Primary Response 100,537 -- Ontario Hydro Nucloor Funds 7,445,985 --- 21,663,705 14,283,377 $26.425.431 $17.157.595 CHARGES FOR NET LONG-TERM LIABILITIES Total charges 1er tho year 1er not long term liabilities which are reported on Iho "Consolidated Statomont ol Oporalions" are as follows: 1993 1992 Principal payments $287,845 $289,022 Interest 500,668 520,868 $788,513 $809,890 Tho charges 1er long term liabilities assumed by tho non- consolidated entities or by individuals in tho case ol tile drainage and shoreline properly assistance loans are not rolloclod in those statements. 10. CONTINGENCIES A delay claim which had been submitted lo llm Town by a contractor contractor relating lo Iho reconstruction ol iho Town Hall has boon solllod. Tho Municipality has commenced legal proceedings against an architectural lirm tor damages resulting Irom dulicionl work related lo this solllomont. Should any gain occur ns a result result ol Ihu above legal action Iho Municipalily will account lor Iho gain in Iho year solllomont is reached A counter claim has been submilled lo tho Municipalily ol Cl,it- inglon by n local company, alleging damages and punitive damages damages related to an interlocutory injunction obtained by tho Town relative to ils business oporalions. The outcome ol this action is not yet determinable arid accordingly no provision has been made in Iho linancial statomonls lor any liability Hint may result 11. DUDGET FIGURES Budgets established 1er capitol lunds, reserves mid roservo lunds nru based on a project oriunlod basis, Ihu coils ol which may lie carried out over one or more years As such, limy nru not directly comparable with current year nclunl amounts and budgets have, therefore, not been rolloclod on Iho "Consolidated "Consolidated Slaloment ol Operations", 12. HYDRO DEVELOPMENT CHARGES "Pursuant lo Development Charges By-Law No 00 105. llm Municipalily collects Duvulopmunl Chargor, on hulinll oi Ihu Clarington Hydro Commission which are lo ho used lo linanco luture growth related capital expenditures These lunds tint mninlninod in n Reserve Fund by llm Municipalily until inquired lo lund llm above noted expentlilurer. Tim Municipalily collected Duvulopmunl Charges, in llm amount ol $164,101, on bohall ol llm Clarington Hydro Commission mid remitted $05,130 lo llm Clarington Hydro Commission lo linanco growth related iixpontliltiriir, incurred The hnlrmcn in llm related Rurmivi) Fund at December 31. 1093 war, $ 0 (1092 $70,051) mul is reported on llm Consolidated llalmuai Sluml' 1 13. SOCIAL CONTRACT The Social Contract Act requires municipalities lo reduce expenditures by a spocilied amount In each ol the years 1993. 1994 and 1995. Unconditional grants will be reduced by n corresponding amount each year. The sectoral agreement between the provincial government and the municipal sector, however, provides 1er Ihe automatic delerral of 25% ol the-1993 social conlract larget amount and the corresponding reduction ol unconditional grants until 1996. For Ihe Municipality ol Clarington the target amount 1er each year is $312,289 and the amount deterred is $78,072 14. CHANGE OF NAME During Iho year, the Corporation ol Ihe Town ol Newcastle officially changed ils name to the Corporation ol Ihe Municipality ol Clarington CONSOLIDATED STATEMENT OF CURRENT OPERATIONS YEAR ENDED DECEMBER 31.1993 SOURCES OF FINANCING Net municipal taxation $15,209,703 $15,609,313 $14,267,53 User charges Grants 2,656,638 2,707,688 2.725,455 Government ol Canada 100 5,103 3,801 Province of Ontario 2,517,802 2,220.655 2,545,949 Other Municipalities Other -- 5,836 Investment income Penalty and interest on 620,172 514,303 797.995 taxes 600,000 1,121,954 908,018 Donations 4,217 4,268 3.220 Other 1,000 5,252 2.424 21,609,632 22.194,372 21,254.395 MUNICIPAL FUND BALANCES AT BEGINNING OF YEAR, TO BE USED TO OFFSET (TO BE RECOVERED FROM) TAXATION OR USER CHARGES Town 1,000,000 2,327,004 2,424,387 Library 11,900 14,695 (985) . Special areas Recreation, community (83,560) (83,561) (35,853) centres and arena boards 81,811 81.81 1 72,769 Central business district improvement areas 11,384 11,384 9,070 Museums (681) (681) 15,519 TOTAL FINANCING AVAIUBLE DURING THE YEAR $22.630.486 $24.545.024 $23.739.302 APPLIED TO General government Protection to persons $4,041,131 $ 3,536,676 $ 3,500,096 and property 2,721,562 2,705,302 2,698,131 Transportation services 5,545,514 5,623,961 5,087,654 Environmental services 1,126,384 1,182,219 1.167,253 Health services Recreation and cultural 122,122 104,191 121,060 services 4,694,013 4,576,897 4.447,980 Planning and development 1.466.412 1.525.463 1.469.999 19,717,138 19,254,709 18,492,173 NET APPROPRIATIONS TO OTHER FUNDS 2,808,031 2,771,609 2,896,477 MUNICIPAL FUND BALANCES AT END OF YEAR, TO BE USED TO OFFSET (TO BE RECOVERED FROM) TAXATION OR USER CHARGES Town -- 2,410.479 2,327,004 Library -- 6,997 14,695 Special areas -- (4,087) (83,561) Recreation, community centre and arena boards 94,461 94,461 81.811 Central business district improvement areas 15,987 15,987 11,384 Museums (5,131) ( 5,131) ( 681) TOTAL APPLICATIONS DURING THE YEAR $22,630,486 $24,545,024 $23,739,302 AUDITORS' REPORT To the Members ol Council, Inhabitants and Ratepayers ol the Corporation ol ihe Municipalily ol Clarington (formerly the Corporation ol Ihe Town ol Newcastle): We have audited Ihe balance sheel ol Ihe trust lunds ol Ihe Corporation Corporation ol the Municipality ol Clarington as at December 31, 1993 and Ihe statement of continuity of trust lunds 1er tho year then ended. ended. These linancial statements are the responsibility ol Ihe Municipality's Municipality's management. Our responsibility is to express an opinion on these linancial statements based on our audit. Wo conducted our audit in accordance with generally accepted auditing standards. Those standards requite lhat we plan and perform perform an audit lo obtain reasdnablo assurance whether Iho linancial statomonls are free ol material misstatcmonl. An audit includes examining, examining, on a test basis, evidence supporting the amounts and dis- ■ closures in Ihe financial statements. An audit also includes assessing assessing Iho accounting principles used and significant estimates made by management, as well as evaluating Ihe overall linancial statement statement presentation. In our opinion, these linancial statements present fairly, in all material material respects, Iho linancial position ol Iho trust lunds 1er Ihe Corporation Corporation ol Ihe Municipalily ol Clarington as al December 31, 1993 and Ihe continuity ol trust lunds 1er Ihe year then ended in accordance with accounting principles disclosed in Note 1 lo Ihe linancial statements. statements. Dcloitte & Touche Chartered Accountants April 29, 1994 MUNICIPALITY OF CLARINGTON TRUST FUNDS UNDER ADMINISTRATION YEAR ENDED DECEMBER 31,1993 Bowmanvillo Cemetery 1993 1992 Perpetual Care $216,050 $190,885 Bondhoad Cemetery Porpolual Caro 19,859 18,275 Trull Comotory Perpetual Caro 1,774 1,774 Advent Comotory Perpetual Caro 918 918 Lovckin Comotory Perpetual Caro 10,000 10,000 Vandorvoor Logacy 1,000 1,000 Montague Trust 30,066 28,709 Ontario Homo Renewal Program 52,523 53,010 Electrion Surplus Fund 8,512 ; 8.512 $340,712 $313.003 Tho accompanying notes are an integral part ol this linancial statomont. For more dolailod Trust Fund linancial statements please contact Iho municipal offices NOTES TO THE TRUST FUNDS FINANCIAL STATEMENTS DECEMBER 31. 1993 1. ACCOUNTING POLICIES ■ Basis ol Accounting: Capital receipts and income nro reported on Iho cash basis ul accounting Expundiluros nro reported on the cash basis ol accounting with Iho oxcuplion ol administrative oxpensus which nru reported on the accrual basis ol accounting, which recognizes expundiluros as they nro incurred .and mensurable nr, a result ol Iho receipl ol goods or services mid the creation ol n legal obligation lo pay 2, ONTARIO HOME RENEWAL PROGRAM ,1) The Ontario Home Renewal Program was established by Ihe • Onlnrio Ministry ol Housing in 1973 lo provide grants 1er munici- polities lo make loans lo assist owner occupante lo repair, relia bililnlo and improve Ihoir homos lo local properly slaiu..'ds In dividual loans nro limited lo $7,500 ol which the maximum forgivable portion is $4,000. Onlniio Homo Renewal Program loans receivable al December 31, 1993 comprise,repayable loans ol $7,096 (1992 $10,022) and forgivable lonnc ol $11,576 (1992 • $11,446) Loan lorgivo- ner.s is onrned mid recorded ni n rule ol up lo $G00 pur year ol contmuod ownership nnd occupancy In llm uvnnl ol Ihu ratio or lease ol Iho homo or in llm uvnnl ol Iho homeowner censing lu occupy Iho homo, Ihu hnlnncus ol llm repayable lean nnd lire unearned forgivable loan immediately become due mid payable , by Hie homeowner h) Onlnrio Droll Regulation 641 has eilablislietl procedure:, 1er llm winding down ol Ihe Onto'io Homo Renewal Program Under comblions stipulated in the Regulation, all I end balance:, must lie minuted to tho Ministry ol Housing by Match I, 1994 Ihe Municipality will continue lo administer Ihu collection el any oui standing loans and remit llm inoceetli; mil ol 5% mlmimstmlion lee 3 INVESTMENTS The loi, al lot mvotIinenls liy llm liusl IuikI:, ol $;'fr.),740 (IDOi) $247.4.10) repotted on llm llalanrii Sheet at cost Itavn a naiket value ul $269,7,10 (1092 $247 .FIO) ill lire i ml nl lire ye.tl