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Page 7, News, Tuesday, June 23, 1992 The Lake Superior Board of Education AUDITORS' REPORT Capital Fund Statement of Operations FOR THE YEAR ENDED DECEMBER 31, 1991 (with comparative amounts for the year ended December 31, 1990) Capital Expenditure : 1991 1990 Capital Assets and Work in Progress Buildings, Furniture & Equipment School Sites & Improvements to Sites Pupil Transportation Vehicles Other $ 1,275,589 $ 1,187,636 61,257 712,597 7,560 Less Goods and Services Tax Rebate Total Capital Expenditure Capital Financing Unexpended Funds at Beginning of Year, or : (Balance at Beginning of Year not Permanently Financed) Elementary Secondary Long Term Liabilities Issued & Sold Contributions from Government of Canada Capital Expenditure from the Revenue Fund 1,336,846 1,712,442 Transfer to the Revenue Fund ( ) ( ) Balance at end of Year not Permanently Financed or (Unexpended Funds at End of Year) Elementary Secondary Total Capital Financing ae =) = & 4 = = eon fi Me a / A Statement of Outlay for Performing Duties of A Expenditure on Account of Municipal Council in Territory Without Municipal Organization FOR THE YEAR ENDED DECEMBER 31, 1991 (Recoverable through levy on assessment in the applicable areas) LAKE SUPERIOR LOCALITY ELEMENTARY SECONDARY Voters' Lists, Elections, Levying and Collecting Taxes, etc. $1,263 NOTES TO FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 1991 1. SIGNIFICANT ACCOUNTING PRINCIPLES: The financial statements have been prepared by the Board 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 accounting principles except as follows: Revenue and expenditures are accounted for by the accrual method except that: a) No provision is made for interest by unmatured debenture debt from the date of the last principal payment to the end of the fiscal year. b) Provision is not made to record the liability for retirement and/or sick leave benefits accruing over the working lives of employees. Fixed assets are charged to current expenditure unless financed by long- term debt. Principal and interest charges on net long-term llabilities are included as expenditures in the period due. Fixed assets including capital leases, 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 net long-term liabilities outstanding and of the related temporary financing at the end of the fiscal year. 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 reserves and reserve funds are approved by the Board and are within the limits defined in the Education Act 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 1991 1990 Revenue fund - mortgages $30,158 $36,917 3. NET LONG-TERM LIABILITY REPAYMENTS 1991 1990 Unmatured debenture debt $792,068 $871,082 Repayments over the next five years are as follows: Principal Interest Total 1992 $ 87,042 $ 82,605 $ 169,647 1993 90,467 74,173 164,640 1994 93,805 65,120 158,925 1995 102,755 55,583 158,338 1996 89,000 44,935 133,935 Thereafter 328,999 73,100 402,099 $792,068 §§ $395,516 § $1,187,584 4. DEBT CHARGES AND CAPITAL LOAN INTEREST The revenue fund expenditure for debt charges and capital loan interest includes principal and interest payments as follows: ' 1991 1990 Principal payments on long-term liabilities $ 79,013 $ 72,209 Interest payments on long-term liabilities 90,385 97,488 $169,398 $169,697 5. RETIREMENT GRATUITIES PLANS 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 gratuity is not vested. The amount paid in the current year in respect of retirement gratuities amounted to $84,556 ($24,771 In 1990). The reserve for retirement gratuities at December 31, 1991 is applicable to the elementary and secondary school operations of the Board as follows: 1991 1990 Elementary $ 320,606 $268,288 Secondary 410,692 311,651 $731,298 $579,939 The above amounts are included on the balance sheet In equity In reserve funds. 6. AREAS OF JURISDICTION WITHOUT MUNICIPAL ORGANIZATION" The board performs the dutles of levying and collecting taxes in the territory without municipal organization of the Lake Superior Locality. The amounts required from this area for 1991 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 In a 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: Elementary Secondary Year (Decrease) (Decrease) 1990 $ (7,124) $ (28,772) 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 $88,128 ($71,269 in 1990). These amounts have been Included in employee benefit expense in the schedule of expenditure. Not shown in the financial statements of the Board are the employer's contributions to the Teacher's Pension Plan. The funding for such is provided directly by the Provincial Government.