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Page 8, News, Wednesday, July 6, 1988 The North of Superior District Roman Catholic Separate School Board Auditor's Report TO THE CHAIRMAN AND MEMBERS CONSOLIDATED BALANCE SHEET The North of Superior District As at December 31, 1987 Roman Catholic Separate School Board (with comparative figures at December 31, 1986) We have examined the consolidated balance sheet-of The North of Superior District R Catholic Separate School Board as at December 31, 1987 and the Revenue Fund and Capital Fund staienierar ub aeenttiens aiaehe ie ee for the year then ended. Our examination was made in accordance with generally accepted auditing standards, and urren : accordingly included such tests and other procedures as we considered necessary in the circumstances. Cash on hand and in bank $ 1,025 $ 1,663 5 ' In a --* ae pan ra se present fairly. the consolidated financial position of the Board ed Accounts receivable 639,714 502,097 t ember 31, 1987 the ts of it: ti for th ded i di ith i inci : f hr Guscrioed in note 1 to top Where centers op aad oF Abate Grater with that tine peccancveee eee Deposits eh site purchase and building construction contract (note 5) 613,064 Thunder Bay, Canada * CLARKSON GORDON Net under requisitions 312,962 226,285. | March 18, 1988 Chartered Accountants Prepaid expenses --26,395 36,957 REVENUE FUND STATEMENT OF OPERATIONS TOTAL GURRENT ASSETS ~ 1.593.160 _767.002 FOR THE YEAR ENDED DECEMBER 31, 1987 Unrecovered capital expenditure ; 78,396 _273,268 (WITH COMPARATIVE FIGURES FOR 1986) $1,871,556 1,040,270 EXPENDITURE 1987 1986 LIABILITIES AND EQUITY Instruction $4,095,738 $3,689,348 Current Plant operation and maintenance 564,675 578,017 Bank indebtedness - overdraft $ 207,261 $ 102,416 Transportation 383 884 331.557 - demand loan (note 2) 901,000 54,000 Debt charges and capital loan interest 40,199 23.94 9 Accounts payable and accrued liabilities (note 4) 481,399 460,590 Business administration 503,042 441,481 Debt charges due and unpaid ---- 426 matt operating expenditure 255,743 166,271 Total current liabilities 1,589,660 617,502 axes written off 5,973 4,699 oe Transfers to Capital Fund 280,416 219,318 Long-term liabilities: (nete-3) -- 28.396 £13,268 Tuition fees 37,539 33,882 Equity: TOTAL EXPENDITURE 6.167.209 5.488.492 Reserve for working capital 146,000 RECOVERY OF EXPENDITURE Capital Reserve Funds - Board equity he 7a 157 Government of Canada 537,365 494,665 ~ Ministry equity 3.343 --3.343 Government of Ontario 164,591 32,278 9.300 149,500 Other revenue 85,004 139,460 $1,871,956 $1,040,279 Other school boards : 49.033 36.402 (See notes to financial statements) Total recovery of expenditure --835,993 -- 102.805 CAPITAL FUND STATEMENT OF OPERATIONS NET EXPENDITURE 5,331,216 4,785,687 For the year ended December 31, 1987 FINANCING OF NET EXPENDITURE (with comparative figures for 1986) Government of Ontario os 1987 1986 General Legislative Grants 4,638,561 4,250,578 CAPITAL EXPENDITURE Local taxation Buildings, furniture and equipment $280,416 $216,531 Previous year's over (under) requisitions (226,285) ; (86,395) House purchases 19,425 173,825 Local taxation raised in current year 459,978 395,219 299,841 390,356 Transfer from reserve for working capital _146.000 Sources of recovery of capital expenditure: Transfers from Revenue Fund 280,416 219,318 5.018.254 4.559.402 hoes are ee : , Net under requisitions to be recovered ees papery ust itrt 2 included 4.297 from following year's taxation $ 312,962 $ 226.285 ai ha ect iene col <5. --14.297 11,47 st ede Baeeeee a 294,713 230.793 (See notes to financial statements) Net increase in prior year's unrecovered capital expenditure 5,128 159,563 NOTES TO FINANCIAL STATEMENTS Unrecovered capital expenditure, beginning of year 73,268 113.705 DECEMBER 31, 1987 ; Unrecovered capital expenditure, end of year $278,396 273,268 1 Significant account policies The financial statements of the Board have been prepared by management: using accounting principles that are prescribed by the Ministry of Education and are considered appropriate for Ontario School Boards. These principles are in accordance with generally accepted principles except as follows: (See notes to financial statements) by a borrowing resolution of the Board and bears interest at the bank's prime lending rate (9.75% at the year end). (a) Basis of consolidation vers The balance sheet presents the financial position of the Revenue, Capital 3. Long term liabilities : ; Reserve, and Capital Funds on a consolidated basis. Separate statements of Long term liabilities consist of debentures outstanding of $88,734 and mortgages operations are presented for the Revenue and Capital Funds. outstanding of $189,662. Over the next five years the principal portion : i bce ' amounting to $233,231 and interest amounting to $46,648 are payable as The Revenue Fund is used to account for operational and administrative costs follows: financed by the Province of Ontario, Government of Canada, participating organized and unorganized municipalities and miscellaneous sources. Principal Interest Total The Capital Fund is used to account for all capital expenditures. 1988 $198,909 $22,711 $221,620 1989 7,610 - 7,018 14,628 The Capital Reserve Funds represent funds appropriated for future capital projects which will be credited to Capital Fund Operations in the year of capital 1990 8,204 6,364 14,568 expenditure. 1991 8,843 5,658 14,501 1992 9,665 4,897 14,562 The Trust Funds are used in conjunction with the Board's Deferred Salary Leave $233,231 $46,648 $279,879 Plan. This plan allows a teacher to defer a portion of his/her salary for several : : years and to take a year's leave from teaching. During the years of deferral the 4. Liability for employee sick leave benefits deferred salary is held in trust for the teacher by the Board. The Trust Funds, as Sick leave benefit plan ; ~ described in note 6, are not reflected in these financial statements. Under the sick leave benefit plan unused sick leave can accumulate to a certain ; maximum and, depending upon the number of days accumulated at the time of (b) Accrual accounting : : retirement, employees may become entitled to a cash payment, assuming that The accrual method of reporting revenue and expenditure has been used except they are still employed by the Board at the time of their retirement. elie: These financial statements include a payment of $38,221 ($822 in 1986) for Interest charges on long-term liabilities is not accrued from the due date of accumulated sick leave benefits which have accrued to employees who have payment to the end of the fiscal year, and; terminated employment in 1987. However, as stated in note 1(b), no provision No provision has been made in these financial statements for the amount of sick has been made for the benefits accumulated to December 31, 1987 which might leave benefits accumulated to December 31, 1987 which might be payable upon be payable upon retirement to those employees remaining on staff after retirement to those employees remaining on staff after December 31, 1987 (see note 4). December 31, 1987. This liability is estimated at approximately $233,500 at the year end. ; 5. Subsequent event (c) Fixed assets : : The Board is in the process of purchasing a site from the Township of Marathon for a Fixed assets are charges to current expenditure unless financed by long-term school to be constructed in Marathon, Ontario. Subsequent to the year end, title to the land debt. Principal and interest charges on long-term liabilities are included in was transferred to the Board at a cost of $389,623. expenditure in the period due. ' Trust Funds Fixed assets, described as unrecovered capital expenditure, are included onthe =" These funds consist of cash and term deposits. Trust fund transactions are summarized balance sheet only to the extent of the balances of the related long-term liabilities eastolicnen: < outstanding and of the related temporary financing outstanding at the end of the 4987 4986 fiscalyear. Capital received during year $25,750 $28,393 (d) Long-term debt Interest earned during year 1,618 1,150 Debentures are recorded as unmatured debt in the year of sale. 27,368 29,543 2 Bank indebtedness - demand loan Deferred salary payments during year ---- ' = es i i j i is authorized ' , This demand loan with the Canadian Imperial Bank of Commerce is a Fund balanitiabatuaslen Gl year 3 8,800 Fund balances, end of year $18,207 - $38,343