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Auditors' Report...cont'd Page 9, News, Tuesday, June 26, 1990 STATEMENT OF OUTLAY FOR PERFORMING DUTIES OF A STATEMENT OF OUTLAY FOR PERFORMING DUTIES OF A UNICIP, OUNCIL IN TERRITO THOU MUNICIPAL COUNCIL IN TERRITORY WITHOUT U PAL ORGANIZATION The Year Ended December NICIPAL ORGANIZATI ForThe Year End ecember 31, 19 cov le n he applicalble areas ecoveral u on assessment in the applicalble areas 4 Col. 1 Col. 2 Col. 3 Col. 1 Col. 2 Col. 3 Name of Area: Net Expenditure aCe Net Expenditure Total Expenditure on Account Col, 1+ Col. 2 Expenditure on Account Col. 1+ Col, 2 ofa of Voters' ofa of Voters' Recreation Lists, Recreation Lists, Committee Elections, Committee Elections, Levying and Levying and Collecting Collecting Secondary Taxes, etc, Elementary est LAKE SUPERIOR LOCALITY = 1,386 1,386] |) aKE SUPERIOR LOCALITY = 1,306 1,306 TOTAL =-- 1,386 1,386) TOTAL = 1,306 1,306) LAKE SUPERIOR BOARD OF EDUCATION THE LAKE SUPERIOR BOARD OF EDUCATION (ELEMENTARY and SECONDARY SCHOOLS) (ELEMENTARY and SECONDARY SCHOOLS) NOTES TO THE FINANCIAL STATEMENTS ~ " IAL S DECEMBER 31, 1989 DECEMBER 31, 1989 3. NET LONG-TERM LIABILITY (continued) 1. ACCOUNTING PRINCIPLES Repayments over the next five years are as follows: The financial statements have been prepared by the Board using accounting principles that are prescribed by the Ministry of Education and are Principal Interest Total considered appropriate for Ontario School Boards. These principles are in accordance with generally accepted accounting principles except as follows: 1990 $ 72,209 $ 97,488 $ 169,697 Acchuet Miiipenting 1991 79,013 90,385 169,398 : Revenue and expenditures are accounted for by the accrual method except yo ors ae pee that: : : . (a) No provision is made ofr interest on unmatured debenture debt from the eed * ieee ceaie : cae date of the last principal payment to the end of the fiscal year. $943,291 $583,389 $1,526,680 (b) No provision is made to record the liability for retirement and/or sick leave benefits accruing over the working lives of employees. 4. DEBT CHARGES AND CAPITAL LOAN INTEREST The revenue fund expenditure for debt "kes Assels. charges and capital loan interest includes principal Fixed assets are charged to current expenditure unless financed by long-| | and interest payments as follows: term debt. Principal and Iterest charges on net long-term liabilities are included as 1989 1988 expenditures in the period due. Fixed assets including capital leases, described as Principal payments on long-term liabilities $21,154 $54,064 capital outlay to be recovered in future years, are included on the balance sheet Interest payments on long-term liabilities 14,028 18,003 only to the extent of the balances of the related net long-term liabilities outstanding Interest payments on temporary financing of and of the related temporary financing at the end of the fiscal year. capital projects 3 67,111 Reserves and reserve funds $35,182 $139,178 Reserves and reserve funds represent funds appropriated for general and specific purposes and are charged or credtied to revenue fund operations in the year appropriated or drawn down. The amounts in reserves and reserve funds are approved by the Board and are within the limits defined in the Education Act. Under/over-requisition of taxes 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. 2. INVESTMENTS 1989 1988 $43,108 $109,661 Revenue fund - mortgages 3. NET LONG-TERM LIABILITY Unmatured debenture debt $943,291 $164,444) 5. RESERVE FOR RETIREMENT GRATUITIES The Board has established a reserve for retirement gratuities. The retirement gratuities are payable to employees on retirement after five years' continuous service provided one year's notice is given of the intent to retire. The reserve for retirement gratuities at December 31, 1989 is applicable to the elementary and secondary school operations of the Board as follows: 1989 1988 Elementary $219,092 $161,050 Secondary 216,431 162,189 $435,523 $323,239 The above amounts are included on the balance sheet in equity in reserve funds. NOTES TO THE FINANCIAL STATEMENT DECEMBER 31, 1989 6. AREAS OF JURISDICTION WITHOUT MUNICIPAL ORGANIZATION The Board performs the duties of levying and collecting taxes in the territory without municipal organization of the Lake Superior Locality. The amounts required from this area for 1989 include outlay by the Board in respect of performing duties of a municipal council. This outlay is not included in the Revenue Fund Statement of Operations of the Board. The amounts are reported by area ina separate statement. 7. PRIOR YEARS' ADJUSTMENTS Adjustments to the prior years' grants from the Ministry of Education have been reflected in the current year as follows: An adjustment to the prior year's grants receivable has also been reflected in the current year as follows: Elementary Secondary Increase Increase (Decrease) (Decrease) 1988 $(26,711) $15,921 Elementary Secondary Increase Increase Decrease Decrease 1983 $ 28,548 $ - 1985 16,701 ~ 1988 97,853 16,531] $143,102 16,531 8. NET EXPENDITURES BY MUNICIPALITIES The amounts of the net expenditures allocated to each of the participating municipalities have been determined on the basis of available information. Adjustments of Provincial grants for current and/or prior years may change these allocations. 9. PENSION PLAN COSTS All non-teaching employees of the school board are eligible to be members of the Ontario Municipal Employees Retirement System which is a multi-employer final average pay contributory plan. Employer contributions made to the plan during the year by the Board amounted to $64,597 ($54,626 in 1988). These amounts have been included in employee benefits expense in the schedule of expenses. Not shown in 'he financial statements of the Board are the employer's contributions to the Teachers' Superannuation Fund. The funding for such is provided directly by the Provincial Government. 10. ONTARIO SCHOOL BOARD INSURANCE EXCHANGE The school board joined, effective April 19, 1987, for a period, ending December 31, 1991, the Ontario School Board's Insurance Exchange (OSBIE), a reciprocal insurance company licensed under the Insurance Act. OSBIE insures general public liability, property damage and certain other risks. 7