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Wednesday, May 24, 1989 Page 12 TERRACE BAY/SCHREIBER NEWS The North of Superior District aN CONSOLIDATED BALANCE SHEET ; /§ as December 31, 1988 sp sae pop tices ee sels i (with comparative figures at December 31, 1987 Auditor's Report \.°)) <=: met on A "Current a a Cash on hand and in bank $ 2,042 $ 1,025 To the North of Superior District Roman Catholic Separate School Board. Accounts receivable - operating 415,507 639,714 We have examined the consolidated balance sheet of The North of Superior District Roman - capital grants 1,329,132 Catholic School Board as at December 31, 1988 and the Revenue Fund and Capital Fund Deposits of site purchase and building statements of operations for the year then ended. Our examination was made in accordance with construction contract 613,064 generally accepted auditing standards, and accordingly included such tests and other procedures as Net under requisitions 443,531 312,962 we considered necessary in the circumstances. Prepaid expenses 9.504 26,395 In our opinion, these financial statements present fairly the Ronceiven financial pons TOTAL CURRENT ASSETS 2.199.716 1.593.160 Board as at December 31, 1988 and the results of its operations for the year then ended in : fe ' accordance with accounting principles described in note 1 to the financial statements applied on a Unrecovered capital expenditure 308,327 --__ 278,396 basis consistent with that of the preceding year. $ 2,508,043 $ 1,871,556 Thunder Bay, Canada CLARKSON GORDON March 17, 1989 Chartered Accountants = dria AND EQUITY REVENUE FUND STATEMENT OF OPERATIONS Bank indebtedness - overdraft $ 351,242 $ 207,261 FOR THE YEAR ENDED DECEMBER 22, 1988 - demand loan (note 2) 758,000 901,000 (with comparative figures for 1987) Accounts payable and accrued liabilities 1, 086,974 ___ 481,399 TOTAL CURRENT LIABILITIES 2.196.216 --1L589,660 EXPENDITURE 1988 1987 ee Instruction $3,974,940 $4,095,738 Long-term liabilities (note 3) 308,327 278,396 Plant operation and maintenance 565,022 ---- Equity Transportation 388,079 ; : =" ieee Debt charges and capital loan interest (note 4) 39,839 40,199 Capital Reserve Funds = ae ame' Bay na Business administration 493,376 503,042 ry wey --e anaes Other operating expenditure 396,002 255,743 5 ae ; ee Taxes written off 15132 5,973 $2 508,043 $ 1,871,556 Transfers to Capital Fund 3,434,343 280,416 (See notes to financial statements) Tuition fees --_ 84,526. --37,539 TOTAL EXPENDITURE 9,357,259 6,167,209 CAPITAL FUND STATEMENT OF OPERATIONS Year ended December 31, 1988 RECOVERY OF EXPENDITURE : . : Government of Canada 564,067 537,365 (with comparative figures for 1987) Government of Ontario 90,514 164,591 Other revenue 178,934 85,004 1988 1987 4 CAPITAL EXPENDITURE Other school boards 32,794 __ 49,033 wan é ; = TOTAL RECOVERY OF EXPENDITURE "866,309. __ 835,993 Buildings, furniture and equipment $3,429,320 $ 280,416 House purchases 47,523 19.425 NET EXPENDITURE 8,490,950 5,331,216 3.476.843 299.844 FINANCING OF NET EXPENDITURE SOURCES OF RECOVERY OF CAPITAL Government of Ontario EXPENDITURE General Legislative Grants - operating 4,841,792 4,573,724 Transfers from Revenue Fund 3,434,343 280,416 - capital 3,021,996 64,837 Debenture principal payments included Local taxation in Revenue Fund expenditure (note 4) 12.569 14,297 Previous year's under requisitions (312,962) ( 226,285) 3,446,912 294.713 Adjustment to previous year's under requisitions (19,941) Net increase in prior years' unrecovered - Local taxation raised in current year 516,534 459,978 capital expenditure 29,931 5.128 Transfer from reserve for working capital 146.000 Unrecovered capital expenditure, beginning of year 278,396 _273,268 8.047.419 9.018.254 : Net under requisitions to be recovered Unrecovered capital expenditure, end of year $ 308,327 $278,396 from following year's taxation $ 443,531 $ 312,962 ; (See notes to financial statements) NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1988 + Significant accounting 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 accounting 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 operation are presented tor 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. 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 year's leave from teaching. During the years of deferral the deferred salary is held in trust for the teacher by the Board. The Trust Funds, as described in note 9, are not reflected in these financial statements. (b) Accrual accounting - 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, 1988 which might be payable upon retirement to those employees remaining on staff after December 31, 1988 (see note 5). (c) Fixed assets - 2 Fixed assets are charged to current expenditure unless financed by long-term debt. Principal 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 fiscal year. (d) Long-term debt - Debentures are recorded as unmatured debenture debt in the year of sale. (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 andthe amounts received to finance 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 The demand loan with the Canadian Imperial Bank of Commerce is authorized by a borrowing resolution of the Board and bears interest at the bank's prime lending rate (12.25% at year end). : (See notes.to financial statements) 3. Long-term liabilities Long-term liabilities consist of debentures outstanding of $79,487 and mortgages outstanding of $228,840. Over the next five years the principal portion amounting to $271,017 and interest amounting to $55,396 are payable as follows: Interest $34,412 6,364 5,658 4,897 Total $270,862 14,568 14,501 14,562 Princi $236,450 8,204 8,843 9,665 1989 1990 1991 1992 1993 11,920 $326,413 2855 4,065 $271,017 $55,396 4. The revenue expenditures for debt charges and capital loan interest includes principal and interest payments as follows: 1988 $12,569 22.270 1987 Principal payments on long-term liabilities $14,297 Interest payments on long-term liabilities 25,902 $39,839 $40,199 5. 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 to a cash payment, assuming that they are still employed by the Board at the time of their retirement. These financial statements include a payment of $Nil ($38,221 in 1987) for accumulated sick leave benefits which have accrued to employees who have terminated employment in 1988. However, as stated in note 1(b), no provision has been made for the benefits accumulated to December 31, 1988 which might be payable upon retirement to those employees remaining on staff after December 31, 1988. This liability is estimated at approximately $256,000 at the year-end. 6. During the year the Board entered into contract to have a school constructed in Marathon, Ontario at an estimated total cost of $3,865,500. At year-end the estimated remaining cost to complete the project is $1,052,300 of which $415,100 has been financed through a direct capital grant from the Ministry of Education. The remaining $637,200 will have to be financed through additional capital grants or other sources available to the Board. 72 Commitment The Board proposes to renovate the Holy Angels school in Schreiber, Ontario at an estimated cost in excess of $1,200,000. To date, architects have been engaged to prepare a preliminary sketch plan at a cost of $8,350 which has been included in capital expenditure. Funding for this project is currently being negotiated with the Ministry of Education. 8. Due to the planned renovations of the Holy Angels school (see note 7), the Board is seeking a new location for the Board's administrative office, which is currently part of the Holy Angels school. Subsequent to year-end, the Board has entered into agreement to purchase a building in Terrace Bay at a cost of $160,000. The Board expects to finance this purchase with a conventional mortgage. 9. Trust Funds These funds consist of cash and term deposits. Trust fund transactions are summarized as follows: 1987 $25,750 1618 - 27,368 (47,504) (20,136) 1988 Capital received during year $9,258 Interest earned during year 858 10/116 Deferred salary payments during year (28,323) (18,207) Fund balances, beginning of year 18,207 38,343 Fund balances, end of year $ oO $18,207 "ef St ek Ee ee ae ke a SS KE RE EE KEMAH Ee Me