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Oakville Beaver Weekend, Sunday, June 12, 1994 â€" 16 THE $ _ 4,365,642 â€" 5,000,000 Shortâ€"term investment 8,000,000 Accounts Receivable â€" Other 7,488,677 2,155,691 Prepaid expense 151,572 125,114 Total Current Assets 20,005,891 7,280,805 Due from Ministry of Education â€" OFA Loans 228,047 â€"â€" Capital Outlay to be recovered _ in future years 73,825,546 63,445,167 Other Assets â€" Deferred Charges (Note #6 7) 2,578,512 1,729,377 Total Assets $ 96,637,996 $ 72,455,349 Liabilities Current Liabilities Bank and other shortâ€"term borrowing $ â€" $ Accounts Payable accrued liabilities Municipalities 1,525,692 Overâ€"requisition â€" elementary 4,494,069 2,548,009 Overâ€"requisition â€" secondary 3,202,205 1,959,174 Other 9,113,044 4,545,652 Due to Trust Funds 2,812,668 2,582,017 Other current Habilities 671,052 522,109 Total Current Liabilities 20,293,038 13,682,653 Loans Payable to the Ontario Financing Authority 228,047 Net Longâ€"Term Liabilities (Note #3) 72,672,942 56,957,032 Reserve for working fundsâ€" specific 447,444 686,100 Equity in reserve funds 1,506,263 859,187 Unexpended Capital Funds 1,490,262 270,377 Total Liabilities Funds $ _ 96,637,996 $ 72,455,349 REVENUE FUND STATEMENT OF OPERATIONS FOR YEAR ENDED â€" DECEMBER 31, 1993 ELEMENTARY SECONDARY 1993 â€"~ @1092 _ â€" 1903 . _ 1992 Expenditure Business Administration $ 1,337,587 $ 1,198,951 $ 1,338,362 $ 1,198,951 General Administration 540,999 702,846 536,482 699,371 Computer Services 915,319 931,668 867,690 884,331 Instruction 121,274,251 121,234,402 101,243,573 102,222,324 Plant Operation 11,419,540 11,548,604 9,681,754 9,845,119 Plant Maintenance 3,031,453 3,269,340 2,244,586 2,644,477 Transportation 5,1735,295 5,903,293 2,362,153 2,673,574 Tuition Fees 274,200 207,093 4,632,669 4,197,569 Capital Expenditures (nonâ€"allocable) 450,448 2,861,085 6,382,175 7,164,688 Debt Charges Capital Loan Interest (Note #4) 6,082,045 5,964,438 4,229,309 3,854,775 Other Operating Expenditure 1,574,015 2,152,574 5,321,595 4,564,794 Nonâ€"Operating Expenditure â€" excluding transfers to reserves 1,484,492 1,062,373 1,222,159 874,930 Total Expenditure $154,119,644 _ $157,036,667 $140,062,507 _ $140,824,903 Recovery of Expenditure 5 Other School Boards â€" Tuition Fees Miscellaneous 138,988 257,675 12,063,136 12,344,105 Government of Ontario 743,869 672,098 369,125 380,757 Social Contract Savings Reimbursement (1,032,204) â€" (881,079) â€" Government of Canada 43,700 40,652 1,954,449 541,411 Individual â€" Tuition Fees 65,243 57,867 782,800 912,191 Other Revenue, excluding transfers from reserves 1,059,996 1,049,742 1,275,748 1,105,602 Total Recovery of Expenditure 1,019,592 2,078,034 15,564,179 15,284,066 Net Expenditure $153,100,052 $154,958,633 $124,498,328 125,540,837 Government of Ontario â€" General Legislative Grants $ 40,170,364 _ $ 43,139,482 $ 30,302,526 $ 33,135,458 Local Taxation Previous year‘s over requisition 2,548,009 1,121,813 1,959,174 3,172,101 Local taxation raised in the current year 114,977,934 112,320,261 95,698,889 90,460,918 (Increase) decrease in reserves (102,186) 925,086 (260,056) 731,534 117,423,757 114,367,160 97,398,007 94,364,553 To be applied to the following year‘s taxation Net over requisition (4,494,069) (2,548,009) (3,202,205) (1,959,174) Total financing of Net Expenditure _ $153,100,052 _ $154,958,633 $124,498,328 $125,540,837 CAPITAL FUND STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1993 1993 1992 CAPITAL EXPENDITURE Fixed Assets . Work in Progress Buildings, Furniture Equipment $ 21,655,993 $ â€"15,237,892 School Sites Improvements to Sites 560,958 2,095,447 22,216,951 Less Federal Sales Tax Refund =â€" 17,333,339 5,351 Total Capital Expenditure $ $ _ 17,327,988 CAPITAL FINANCING Unexpended Funds at Beginning of Year (Balance at beginning of year not permanently financed) â€" Elementary $ 270,377 $ (1,451,425) â€" Secon (6,488,135) (2,069,263) Long Term Liabilities Issued Sold 19,954,281 2,593,500 â€" Capital Expenditure from Revenue Fund 8,818,086 12,037,418 Balance at end of year not permanently financed (Unexpended Funds at end of year) â€"Elementary 1,152,604 (270,377) â€" Secondary (1,490,262) 6,488,135 Total Capital Financing $ 22,216,951 $ 17,327,988 HALTON BOARD OF EDUCATION NOTES TO FINANCIAL STATEMEI\] E S FOR THE YEAR ENDED DECEMBER 31, 1993 1. P The financial statements have been prepared by the Board using accounting principles that are preâ€" scribed by the Ministry of Education 'Ik'aininfi and are considered appropriate for Ontario School ?(l,]"ds‘ These principles are in accordance wit generally accepted accounting principles except as ollows: (a) Accrual Accounting â€" Revenue atxild expenditure are accounted for on the accrual basis of accounting with the following exceptions: (i) No provision is made for interest on unmatured debenture debt from the date of payment to the yearend. (ii) No provision is made to record the liability for retirement and/or sick leave benefits accruing over the working lives of employees. â€" (b) Capital Assets â€" Capital assets are expensed unless they are to be financed by longâ€"term debt. Principal and interâ€" est charges on net longâ€"term liabilities are included as expenditures in the period due. Capital assets, including capital leases, described as capital outlay to be recovered in future years, are included on the balance sheet only to the extent of the balances of the related net longâ€"term liabilâ€" ities outstanding and of the related temporary financing at the yearâ€"end. Reserves and Reserve Funds â€" Reserves and reserve funds represent funds appropriated for general and specific purposes and are charged or credited to Revenue Fund Operations in the year appropriated or drawn down. ghfin m:;(;::mtt; in Reserves and Reserve funds are approved by the Board and are within the limits efine e Education Act. Under/Over Requisition of Taxes â€" The difference between the net expenditures of any year and the amounts received to finance these expenditures is carried forward to the subsequent year to either increase or reduce the net revenue requirement from ratepayers. Deferred Charges â€" Computers purchased for administrative purposes are stated at cost less amortization. Amortization is on a blended monthly basis over four to five years. The Workers‘ Compensation Board‘s special assessment for the Board to change from a Schedule 1 to Schedule 2 employer is stated at cost less amortization. Amortization is on a blended monthly basis over four years. 2. RETIREMENT GRATUITY PLANS The Retirement Gratuity Plans established by the Board provide for the payment of a gratuity to ent?)loyees who have a minimum of ten consecutive years service with the Board immediately prior to retirement on pension by reason of age or ill health. The amount of gratuig' payment is determined by the employee‘s years of service, number of cumulative sick leave days and annual salary. The benefit payable to an employee is equal to the lesser of fifty er annual salary or a maximum amount as set for Retirement $1,476,876). The estimated unfunded liability of the plans at December 31, 1993 of $6,250,000, is based on the liabilâ€" ity which would occur if all employees who were entitled to a gratuity had retired at the end of 1993. Gratuities totalling $42,048 were charged to a reserve fund and the balance was charged to current expenditures. The reserve fund balance at December 31, 1993 was nil (1992 â€" $39,978). 3. NET LONGâ€"TERM LIABILITIES Of the net longâ€"term liabilities outstanding of $72,672,942, principal amounting to $25,665,743 plus interest amounting to $33,317,455 is payable over the next five years as follows: (c) (d) (e) rcent of hi in the terms and conditions of employment. gratuities paid in respect of employees who retired in 1993 â€" $2,109,067 (1992 â€" Principal Interest Total 1994 4,540,740 7,356,079 11,896,819 1995 4,785,810 7,036,676 11,822,486 1996 5,327,247 6,699,506 12,026,753 1997 5,511,467 6,381,860 11,893,327 1998 5,500,479 5,843,334 11,343,813 4. DEBT CHARCGES AND CAPITAL LOAN INTEREST The Revenue Fund expenditure for debt charges and capital loan interest includes principal and interâ€" est payments as follows: Principal rayments on longâ€"term liabilities including contributions to sinking funds $2,072,866 $1,610,606 Interest payments on longâ€"term 5 liabilities 3,958,422 2,247,853 Interest payments on temporary financing of capital projects and debenture issuance costs 50,757 370,850 $6,082,045 $4,229,309 5. PENSION PLAN COSTS Certain nonâ€"teaching employees of the school board are eligible to be members of the Ontario Municipal Employees Retirement System which is a multiâ€"employer final average J)ay contributory plan. Employer contributions made to the plan during the year by the Board amounted to $1,576,666 (1992 â€" $1,534,509). Those amounts have been included in expenditure reported in the Revenue Fund Statement of Operations. Not shown in the financial statements of the Board are the employer‘s contributions to the Teachers‘ Pension Plan. The funding for such is provided directly by the Provincial Government. 6. WORKERS‘ COMPENSATION INSURANCE During the year the Board resolved to become selfâ€"insured for future compensation expenditures payâ€" able to its employees under the Workers‘ Compensation Act. In accordance with the terms of that undertaking the Board incurred a special assessment in respect of prior claims at an estimated amount of $1,939,947 which, as approved by the Ontario Municipal Board, is being amortized over the four year period 1993 to 1996. 7. DEFERRED CHARGES Deferred charges, which are reported on the balance sheet as "Other Assets", comprise the unamortized portion of computer hardware and software for administrative p ses purchased after 1989 and the unamortized portion of the Workers‘ Compensation Board‘s special assessment referred to in Note 6. The cost of computer hardware and software purchased in 1993 was $32,700 and amortization charged to the Revenue Fund for the year was $546,661 (1992 â€" $475,964). The cost of the Workers‘ Compensation Board‘s special assessment was $1,939,947 and amortization charged to the Revenue Fund for the year was $485,000. At the yearâ€"end, deferred charges comprise $1,123,565 in respect of unamortized computer costs and $1,454,947 in respect of the unamortized portion of the W.C.B. special assessment. AUDITORS‘ REPORT To the Trustees of The Halton Board of Education We have audited the Balance Sheet of The Halton Board of Education as at December 31, 1993, the Revenue Fund Statement of Operations and the Cagital Fund Statement of Operations for the year then ended. These financial statements are the responsibility of the school board‘s management. Our responsibility is to express an 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 free of 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 significant estimates made by management, as well as evaluating the overall financial statement presentation. As explained in note 6, the Board is amortizing the Workers‘ Compensation Board special assessment over a four year period. Generally accepted accounting principles require that such expenditure be recorded in the year it is incurred. Had the expenditure been recorded entirely in 1993, net expenditure would have been increased and the overâ€"requisition carried forward to 1994 would have been reduced by $1,454,947. In our opinion, except for the nonâ€"observance of generally accepted accounting principles and the effects thereof gescrlbed in the preceding paragraph, these financial statements present fairly, in all material respects, the financial position of tl‘:: Boarg as at December 31, 1993 and the results of its operations for the year then ended in accordance with the accounting principles described in note 1 to the financial statements. Hamilton, Canada MacGILLIVRAY PARTNERS March 16, 1994 CHARTERED ACCOU_NTANTS Published by: The Halton Board of Education as required by Provincial Legislation: 5x a a a a S a = + x s x