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New locale"... .... M . ca of Superior District fan Catholic Separate School Board Auditor's Repor CONSOLIDATED BALANCE SHEET As at December 31, 1986 (with comparative figures at December 31, 1985) TO THE CHAIRMAN AND MEMBERS, The North of Superior District Roman Catholic Separate Schoo! Board : We have examined the consolidated balance sheet of The North of Superior District Roman Catholic Separate Schoo! Board as at December 31, 1986 and the Revenue Fund and Capital Fund ASSETS eee 1985 statements of operations and Capital Reserve Funds statement of operations and fund balance Current: : $ $ for the year then ended. Our examination was made in accordance with generally accepted auditing Cash on hand and in bank 1,663 1,284 standards, and accordingly included such tests and other procedures as we-considered necessary Accounts Receivable : 502,097 514,086 in the circumstances. Net under requisitions 226,285 86,395 In our opinion, these financial statements present fairly the consolidated financial position of Prepaid expenses 36,957 14,720 the Board as at December 31, 1986 and the results of its operations for the year then ended in TOTAL CURRENT ASSETS tt gee eae accordance with accounting principles described in note 1 to the financial statements applied _____767,002 616,485 on a basis consistent with that of the preceding year. Unrecovered capital expenditure ___ 273,268 9,705 $ 1,040,270 $ _ 730,190 CLARKSON GORDON LIABILITIES AND EQUITY Thunder Bay, Canada, Chartered Accountants Current: Maret 20, 1987 Bank indebtedness -Overdraft $ 102,416 $ 92,380 -demand loan (note 2) 54,000 Accounts payable and accrued liabilities ' REVENUE FUND STATEMENT OF OPERATIONS (note 4) 460,590 376,833 Debt charges due and unpaid 496 559 Total Current Liabilities 617.502 469.772 For the year ended December 31. 1986 Long-term liabilities (note 3) 273.268 110.918 (with comparative figures for 1985) Equity: : p 1986 1985 Reserve for working capital E 146.000 146.000 EXPENDITURE Capital Reserve Funds - Board equity 157 157 Instruction $ 3.689.348 $ 3.200.002 - Ministry equity 3,343 3.343 Plant operation and maintenance 578.017 pak ed _ 149,500 _ 149,500 Transportation 337.557 89, 1.04 Debt charges and capital loan interest 23,919 216.648 so) 040.270 $ 730.190 Business administration 441,481 351,677 (See Notes to Financial Statements) a TERIA ER oe Other operating expenditure 166.271 ae : : Taxes written off 4.699 Transfers to Capital Fund 219 318 70,557 CAPITAL FUND STATEMENT OF OPERATIONS Transfer to Capital Reserve Funds 3.500 For the year ended December 31. 1986 Tuition fees 33,882 __ 52.714 (with comparative figures for 1985) TOTAL EXPENDITURE 5.488.492 5,009,945 1986 1985 RECOVERY OF EXPENDITURE Sources of recovery of capital expenditure Transfers from Revenue Fund $ 219.318 $ 70.557 Government of Canada ee Be Debenture principal payments included : Seabee Ontario aan 51.347 in Revenue Fund expenditure 11,475 108.000 Vv ). : Write-down of debentures Other school boards 36.402 _ 19,946 : _ 1.078.082 702.805 514,296 230.793 1.256.639 Total recovery of expenditure F : otrst CAPITAL EXPENDITURE NET EXPENDITURE 4.785.687 4.495.649 Buildings, furniture and equipment 216.531 70,557 FINANCING OF NET EXPENDITURE House purchases 173.825 Government of Ontario epee tt ee General Legislative Grants 4,250,578 4.079,209 _.__ 390,356 70.557 Local taxation 56.3954 (96,032) Net increase in (recovery of) prior years Previous year's over (under) requisitions (86, X unrecovered capital expenditure : 159 ion saised | 395,219 379,077 _ es (1,186,082) Local taxation raised in current year 47,000 Unrecovered capital expefaiture. Transter from reserve for working capital 4,559,402 : 4,409,254 beginning of year 413,705 ~ 4,299,787 Net under requisitions to be recovered Unrecovered capital expenditure end of year $ 273,268 $ 113.705 from following year's taxation $ 226,285 $ 86,395 : ae aa ae Pye Loe SS E--E--=ETS (See Notes to Financial Statements) (See Notes to Financial Statements) CAPITAL RESERVE FUNDS STATEMENT OF OPERATIONS - AND FUND BALANCE For the year ended December 31, 1986 NOTES TO FINANCIAL STATEMENTS (with comparative figures for 1985) December 31, 1986 = 1. Significant accounting policies 1986 1985 The financial statements of the Board have been prepared by management using accoun- Source of funds ting principles that are prescribed by the Ministry of Education and are considered ap- Transfer from Revenue Fund $ 3,500 propriate for Ontario School Boards. These principles are in accordance with generally ac- SS cepted accounting principles except as follows: Capital Reserve Fund balance, end of year ee a a : - Board equity $ 157 $ 157 a asis of consolidation - - Mini it The balance sheet presents the financial position of the Revenue, Capital Reserve, and aera : 538 257 sae Capital Funds on a consolidated basis. Separate statements of operations are presented $ 3,500 $ 3,500 for each of those funds. . (See Notes to Financial Statements) 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. Long-term liabilities Long-term liabilities consist of debentures outstanding of $100,096 and mortgages outstan- ding of $173,172. Over the next five years the principal portion amounting to $218,438 and The Capital Fund is used to account for all capital expenditures. ; s interest amounting to $65,447 are payable as follows: 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. Principal Interest Total ' 1987 $ 14,297 $ 25,903 $ 40,200 The Trust Funds are used in conjunction with the Board's Deferred Salary Leave Plan. This 1988 179,484 20,504 199,988 plan allows a teacher to defer a portion of his/her salary for several years and to take a 1989 7,610 7,018 14,628 year's leave from teaching. During the years of deferral the deferred salary is held in trust 1990 8,204 6,364 14,568 for the teacher by the Board. The Trust Funds, as described in note 5, are not reflected in 1991 8,843 5,658 14,501 these financial statements. $218,438 $ 65,447 $283,885 (b) Accrual accounting - (c) (d) The accrual method of reporting revenue and expenditure has been used except for the following: Interest charged 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, 1986 which might be payable upon retirement to those employees-remaining on staff after December 31, 1986 (see note 4). Fixed assets - 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 due. _ Fixed assets, described as unrecovered capital expenditure, 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. Long-term debt - Debentures are recorded as unmatured debenture debt in the year of sale. Bank indebtedness - d id 'oan This demand loan with the Canadian Imperial Bank of Commerce is authorized by a borrow- ing resolution of the Board and bears interest at the bank's prime lending rate of (9.75% at year end). 4. Liability for employee sick leave benefits Sick leave benefit plan - 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 retirement, employees may become entitled toa cash payment, assuming that they are still employed by the Board at the time of their retirement. These financial statements include a payment of $822 ($1,604 in 1985) for accumulated sick leave benefits which have accrued to employees who have terminated employment in 1986. However, as stated in note 1(b), no provision has been made for the benefits accumulated to December 31, 1986 which might be payable upon retirement to those employees remain- ing on staff after December 31, 1986. This liability is estimated at approximately $208,500 at the year end. : Trust Funds These funds consist of cash and term deposits. Trust fund transactions are summarized as follows: 1986 1985 Capital received during year $ 8.790 Interest earned during year eee 8,800 Fund balances, beginning of year i Ae Fund balances, end of year _ $ 8,800