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Page 8, News, Tuesday, June 12, 1990 The North of Superior District Roman Catholic Separate School Board Auditors' Report wk et TO THE NORTH OF SUPERIOR DISTRICT ROMAN CATHOLIC SEPARATE SCHOOL BOARD We have examined the consolidated balance sheet of The North of Superior District Roman Catholic Separate School Board as at December 31, 1989 and the Revenue Fund and Capital Fund statements of operations the year then ended. Our examination was made in accordance with generally accepted auditing standards, and dingly included such tests and other procedures as we considered necessary in the circumstances. In our opinion, these financial statements present fairly the consolidated financial position of the Board as December 31, 1989 and the results of its operations for the year ended in accordance with accounting principles scribed in note 1 to the financial statements applied on a basis consistent with that of the preceding year. Thunder Bay, Canada ERNST & YOUNG March 9, 1990 Chartered Accountants THE NORTH OF SUPERIOR DISTRICT ROMAN CATHOLIC SEPARATE SCHOOL BOARD REVENUE FUND STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1989 (with comparative figures for 1988) EXPENDITURE 1989 1988 Instruction $3,841,167 $3,974,940 Plant operation and maintenance 675,795 565,022 Transportation 390,171 388,079 Debt charges and capital loan interest (note 4) 47,432 39,839 Business administration 635,991 493,376 Other operating expenditure 254,994 396,002 Taxes written off ne OEE 1,132 Transfers to Capital Fund 1,785,754 3,434,343 Tuition fees __ 84,109 _ 64,526 TOTAL EXPENDITURE _2716.479 9.357.259 ECOVERY OF EXPENDITURE Government of Canada 575,999 564,067 Government of Ontario 104,558 90,514 Other revenue 59,427 178,934 Other school boards 21,206 32,794 Total recovery of expenditure _ 761,190 __ 866,309 NET EXPENDITURE 6,955,289 8,490,950 FINANCING OF NET EXPENDITURE Government of Ontario General Legislative Grants - operating 4,914,506 4,841,792 - capital 1,723,359 3,021,996 Local taxation Previous year's over (under) requisitions (443,531) (312,962) Adjustment to previous years' under requisitions (19,941) Local taxation raised in current year 596,038 516,534 6,790,372 8,047,419 ' Net under requisitions to be recovered from following year's taxation (note 6) $ 164,917 $ 443,531 ( See notes to financial statements) NOTES TO FINANCIAL STATEMENTS DECMEBER 31, 1989 i= 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: (a) Basis of consolidation The balance sheet presents the financial position of the Revenue, Capital Reserve, and Capital Funds on a consolidated basis. Separate statements of operations are presented for the Revenue and Capital Funds. The Revenue Fund is used to account for operational and administrative costs financed by the Province of Ontario, Government of Canada, participating organized and unorganized municipalities and miscellaneous sources. The Capital Fund is used to account for all capital expenditures. The Capital Reserve Funds represent funds appropriated for future capital projects which will be credited to Capital Fund Operations in the year of capital expenditure. (b) Accrual accounting The accrual method of reporting revenue and expenditure has been used except for the following: Interest charges on long-term liabilities is not accrued from the due date of payment to the end of the fiscal year, and; No provision has been made in these financial statements for the amount of sick leave benefits accumulated to December 31, 1989 which might be payable upon retirement to those employees remaining on staff after December 31, 1989 (see note 5). (c) Fixed assets Fixed assets are charges to current expenditure unless financed by long-term debt. Principal and interest charges o long-term liabilities are included in expenditure in the period due. Fixed assets, 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 long-term liabilities outstanding and of the related temporary financing outstanding at the end of the fiscal year. NOTES TO FINANCIAL STATEMENTS DECMEBER 31, 1989 1. Significant account policies (continued) (d) Long-term debt - (e) Reserves and reserve funds - 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. The amounts in reserve and reserve funds are approved by the Board and are within the limits defined in the Education Act. (f) Under/Over requisition of taxes - The difference between the net expenditures of any year and the amounts received to lfinance these expenditures is carried forward to the subsequent year to either increase or decrease the net revenue requirement from rate payers. 2. Bank indebtedness - demand loan This unsecured demand loan with the Canadian Imperial Bank of Commerce is ---- by a borrowing resolution of the Board and bears interest at the bank's prime ing rate (13.5% at year end). x. 3 Long-term liabilities Long-term liabilities consist of debentures outstanding of $71,877 and mortgages joutstanding of $225,982. Over the next five years the principal portion amounting to $269,130 and interest amounting to $52,646 are payable as follows: Principal Interest Total 1990 $234,268 $34,668 $268,936 1991 8,843 5,658 14,501 1992 9,665 4,897 14,562 1993 7,855 4,065 11,920 1994 8.499 3,358 11,857 $269,130 $52,646 $321,776 Current portion of long-term liabilities is composed of the following: 1989 1988 Mortgages due on demand $ 59,885 $ 61,485 Mortgages due October 1, 1990 166,179 167,355 Debentures - current portion 8.204 2610 $234,268 $236,450 3: Long term liabilities (continued) The nature of the collateral to support the mortgages is as follows: a) mobile home in Marathon and insurance; b) lot and mobile home in Marathon and c) three properties in Manitouwadge and fire insurance. 4. Debt charges and capital loan interest The revenue fund expenditures for debt charges and capital loan interest include princi and interest payments as follows: 1989 1988 Principal payments on long-term liabilities $10,468 $12,569 Interest payments on long-term liabilities 36,964 27.270 $47,432 $39,839 5: Liability for employee sick leave benefits Sick leave benefit plan - Under the sick leave benefit plan, unused sick leave can accumulate to a cert maximum and, depending upon the number of days accumulated at the time of retireme employees may become entitled to a cash payment, assuming that they are still employ by the Board at the time of their retirement. These financial statements include a payment of $17,045 ($Nil in 1988) for accumula sick leave benefits which have accured to employees who have terminated employmen 1989. However, as stated in note 1(b), no provision has been made for the bene accumulated to December 31, 1989 which might be payble upon retirement to the employees remaining on staff after December 31, 1989. This liability is estimated approximately $256,400 at the year-end. 6. Net under requisitions The board is negotiating with the Ministry of Education for additional funding for operat purposes. The funding must be approved via an order in council from the provin' jgovernment.