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Page 12, Terrace Bay-Schreiber News, Wednesday, June 18, 1986 ESS The North of Superior District Roman Catholic Separate School Board Auditor's Report * TO THE CHAIRMAN AND MEMBERS, p The North of Superior District BALANCE SHEET Roman Catholic Separate School Board As at December 335 oss 52 bas We have examined the consolidated balance sheet of The North of Superior District Roman (with comparative figures at December : ) Catholic Separate School Board as at December 31, 1985 and the Revenue Fund and Capital Fund ASSETS 1985 1984 statements of operations and Capital Reserve Funds statement of operations and fund balance ; $ $ for the year then ended. Our examination was made in accordance with generally accepted auditing Current: men 1.284 185.776 standards, and accordingly included such tests and other procedures as we considered necessary Cash on hand and in ban SuaG 285.507 in the circumstances. Accounts sonnet ne! ono aap In our opinion, these financial statements present fairly the consolidated financial position of Net under requisitions pes 7'520 the Board as at December 31, 1985 and the results of its operations for the year then ended in Prepaid expenses = So a HE accordance with accounting principles described in note 1 to the financial statements applied TOTAL CURRENT ASSETS 616,485 = 574,835 on a basis consistent with that of the preceding year. inreedsired copii! aapunditure 113,705 1,299,787 $ 730,190 $1,874,622 CLARKSON GORDON Thunder Bay, Canada, Chartered Accountants LIABILITIES AND EQUITY March 20, 1986 Current: Bank indebtedness $ 92,380 Accounts, payable and accrued liabilities REVENUE FUND : (note 4) 376,833 384,061 i 559 561 STATEMENT OF OPERATIONS Debt charges due and unpaid Jee geo cage eas Total Current Liabilities 469,772 384,622 For the year ended December 31, 1985 Long-term liabilities (note 3) 110,918 1,297,000 (with comparative figures for 1984) Eagiien : quity: 1985 1984 Reserve for working capital 146,000 193,000 Capital Reserve Funds - Board equity 157 EXE SHON SE - Ministry equity 3,343 Instruction $ 3,200,002 $ 2,997,796 sen er cs 193.000 Plant operation and maintenance 597,490 506,339 149,500 193,00 Transportation. 289,728 219,200 $ 730,190 $ 1,874,622 Debt charges and capital loan interest 216,648 214,235 ee ------S Business administration 351,677 332,645 (See Notes to Financial Statements) Other operating expenditure 226,968 35,081 Taxes written off 661 2,459 Transfers to Capital Fund 70,557 44,437 CAPITAL FUND | Transfer to Capital Reserve Funds 3,500 STATEMENT OF OPERATIONS Tuition fees 52,714 For the year ended December 31, 1985 TOTAL EXPENDITURE 5,009,945 4,352,192 (with comparative figures for 1985) : 1985 1984 SOT OF Seen Sources of recovery of capital expenditure Government of Canada 433,206 368,827 Transfers from Revenue Fund $ 70,557 $ 44,437 Government of Canada 9,797 6,194 : , Debenture principal payments included Other revenue 51,347 §2,726 : Other school boards 19.946 16.186 in Revenue Fund expenditure 108,000 98,000 _--_--_ os aaa eee Write-down of debentures (note 2) 1,078,082 ae Total recovery of expenditure ___514,296 ____ 443,933 1,256,639 142,437 NET EXPENDITURE 4,495,649 3,908,259 CAPITAL EXPENDITURE FINANCING OF NET EXPENDITURE . : Buildings, furniture and equipment 70,557 oon een Government of Ontario ' A ; General Legislative Grants 4,079,209 3,514,536 Net recovery of guer year's Letra expenditure 1,186,082 95,213 Local taxation Unrecovered capital expenditure, Previous year's over (under) requisitions (96,032) (16,496) beginning of year : 1,299,787 ___ 1,395,000 Local taxation raised in current year 379,077 314,187 ; ; Transfer from reserve for working capital 47,000 Unrecovered capital expenditure, end of year _$ 113,705 S__1,299,787 > 4,409,254 3,812,227 (See Notes to Financial Statements) Net under requisitions to be recovered $ 86,395 $ 96,032 trom following year's taxation SS SS CAPITAL RESERVE FUNDS STATEMENT OF OPERATIONS AND FUND BALANCE (See Notes to Financial Statements) = For the year ended December 31, 1985 1985 NOTES TO FINANCIAL STATEMENTS Source of funds December 31, 1985 Transfer from Revenue Fund $3,500 1. Significant accounting policies Capital Reserve Fund balance, end of year The financial statements of the Board have been prepared by management using accoun- - Board equity 157 ting principles that are prescribed by the Ministry of Education and are considered ap- Mini : propriate for Ontario School Boards. These principles are in accordance with generally ac- - Ministry equity ___ 3,343 cepted accounting principles except as follows: S350) (a) Basis of consolidation - - (See Notes to Financial Statements) 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 each of those 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 unorganiz- : ed municipalities and miscellaneous sources. 3 NOTES CONTINUED The Capital Fund is used to account for all capital expenditures. 3. Long-term liabilities The Capital Reserve Funds represent funds appropriated for future capital projects which Long-term liabilities consists of debentures outstanding of $110,918. Over the next tive years will be credited to Capital Fund Operations in the year of capital expenditure. the principal portion amounting to $47, 245 and interest amounting to $39,304 are payable as follows: The Trust Funds are used in conjunction with the Board's Deferred Salary Leave Plan. This plan allows a teacher to defer a portion of his/her salary for several years and to take a Principal ' interest Total year's leave from teaching. During the years of deferral the deferred salary is held in trust 1986 $ 10,822 $ 9,495 $ 20,317 for the teacher by the Board. The Trust Funds, as described in note 5, are not reflected in 1987 11,362 8,657 20,019 these financial statements. 1988 9,247 7,770 17,017 1989 7,610 7,018 14,628 (b) Accrual accounting - 1990 8,204 6,364 23 44,508 The accrual method of reporting revenue and expenditure has been used except for the j $ 47,245 $ 39,304 $ 86,549 following: Interest charged on long-term liabilities is not accrued from the due date of payment to the 4. Liability for employee sick leave benefits end of the fiscal year, and; : No provision has been made in these financial statements for the amount of sick leave Sick leave benefit pian - ; benefits accumulated to December 31, 1985 which might be payable upon retirement to those Under the sick leave benefit plan unused sick leave can accumulate to a certain maximum employees remaining on staff after December 31, 1985 (see note 4). and, depending upon the number of days accumulated at the time of retirement, employees "may become entitled to a cash payment, assuming that they are still employed by the Board (c) . Fixed assets - at the time of their retirement. Fixed assets are charged to current expenditure unless financed by long-term debt. Prin- cipal and interest charges on long-term liabilities are included in expenditure in the period These financial statements include a payment of $1,604 ($20,900 in 1984) for accumulated due. sick leave benefits which have accrued to employees who have terminated employment in 1985. However, as stated in note 1(b), no provision has been made for the benefits accumulated Fixed assets, described as unrecovered capital expenditure, are included on the balance to December 31, 1985 which might be payable upon retirement to those employees remaining sheet only to the extent of the balances of the related long-term liabilities outstanding and on staff after December 31, 1985. This liability is estimated at approximately $169.500 at the of the related temporary financing Outstanding at the end of the fiscal year. year end. (d) Long-term debt - Debentures are recorded as unmatured debenture debt in the year of sale. 5. Trust Funds 2. Write-down of debentures During the year, the Province of Ontario announced they would write-down the Government's These funds consist soley of cash. A continuity of trust fund transactions are as follows: share of the approved portion of school board debentures outstanding at December 31, 1985 : : : : which are held by the Ontario Education Capital Aid Corporation. Accordingly, outstanding tet ge cigs 2 saints debenture debt and the corresponding fixed assets have been written down by $1,078,082 representing the Government's share of these debentures as of December 31, 1985. General Interest earned during year : ; = a0 Legislative Grants from the Province will be reduced in future years to the extent that the , : Fund bal , end of ; Province would have advanced funds to retire the debentures as they came due. Sree eee eee 228