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Page 8 TERRACE BAY NEWS September 15, 1966 AUDITOR#?S REPORT * 109 Cuthbertson Block, Fort William, Ontario, April 14, 1966. THE REEVE AND MEMBERS OF COUNCIL, THE TOWNSHIP OF TERRACE BAY, TERRACE BAY, ONTARIO. We have examined the becks end records of the Township of Terrace Bay for the year ended December 31, 1966, and statements relative thereto are attached. Reverme Fund Requests for verification of tax arrears were sent to all taxpayers shown on the roll as being in arrears at April 12, 1966. Expenditure on recreation and commmnity services includes an amount of $3,056.58 paid over to the Recreation ' Snack Bar account during the year. This amount was required to finance the 1965 deficit on the operation of the Snack Bar and te previde working funds te carry the Snack Ber inventories. A separate balance sheet and statement a of reverme and expenditure fer the Snack Ber operation are attached. It is our understanding that receipts from swimsaing peol donations and memberships are to be taken inte the Township revere fund until such time as the amounts expended in past years on the construction and maintenance of the peel and changeheuse have been fully recovered. Subsequent receipts from these sources would then be paid di- rectly te the Recreation Committee te finance operating expenses. The umrecovered balance of the pool and change- house costs at December 31, 1965, was $25,034.87, as follows: Balance December 31, 1964 $32,577.92 1965 payment on insurance 46 32,6373 1965 receipts Balance provincial sales 3 tax rebate 312.01 Denations and memberships 72290.50 Balance December 31, 1965 $ 25,034.8 Public Scheel Board Expenditures fer teachers' salaries in the attached statement include the gross saleries earned by teashers during the year. Since the teaching steff is paid en a twelve-month basis, from September to August inclusive, where- as the services are rendered over a ten-month period from September to June, there is a resultant liability toe teach- ers fer deferred salary payments as at December 31, 1965. This accrued liability is included in the attabhed state- ments. R. C. Separate Sehool Board The expenditure for teachers' salaries and the liability for accrued salaries have been determined in the same manner as was adopted by the Public School Beard, and explained above. A residence is held in the name of the Scheol Board, as an accommodation measure only, on behalf of the Parish. A mortgage in the amount of $14,300.00, without interest, payable on demand, was given by the Board te the Parish to indicate effective ownership by the Perish of this dwelling. Neither the asset nor the liability for the demand mort- gage are included in the attached statements. High Scheol Board A contract in the amount of $5,338.00 was let during the year for renovations to the physical education in- structors' rooms. Although this project was not completed during the year, the full amount of the contract is includ- ed in capital expenditures of the year. The balance unpaid on the contract at December 31, 1965, in the amount of $2,838.00, is included in accounts payable on the school revenue fund balance sheet. Capital expenditures of $19,273,16 eut of current funds, including the purchase of an additional teacher's residence, exceeded two mills without the prior approval of the Ontario Municipal Board, contrary to section 34 of the Secondary Scheols and Beard of Education Act. Continued page ecccccceccce