The URL can be used to link to this page

Home My WebLink About2002 Financial StatementsKneehill County Financial Statements For the year ended December 31, 2002 IBDO BDO Dunwoody w Chartered Accountants and Consultants ~rrl Kneehill County Balance Sheet December 31 2002 2001 Assets Current Cash $ 218,969 $ 132,525 Term deposits 13,600,000 11,500,000 Taxes receivable 318,435 267,688 Trade and other accounts receivable 258,455 720,905 Inventories (Note 2) 1,139,462 1,634,248 Prepaid expenses 59,256 12.734 MR 15,594,577 14,268,100 Capital assets (Note 3) 16,818,087 16,742,601 Other assets (Note 4) 12,141 5,121 Tax Sale Trust Account 331 6.663 $ 32,425,136 $ 31,022,485 Liabilities Current Accounts payable and accrued liabilities $ 238,934 $ 420,344 Vested sick leave benefits 218,029 226,081 Deferred revenue (Note 5) 35,447 34,529 492,410 680,954 Tax Sale Trust Account 331 6,663 492,741 687.617 Municipal Equity Accumulated Surplus $ 5,728,724 $ 5,708,292 Equity in Capital Assets 16,818,087 16,754,855 Reserves (Note 6) 9,385,584 7,871.721 31,932,395 30,334,868 $ 32,425,136 $ 31,022,485 Reeve Municipal Administrator 13D0 The accompanying notes are an integral part or mere nnanciai statements. 3 On behalf of the Council: Kneehill County Statement of Municipal Equity W For the year ended December 31 2002 2001 Statement of Accumulated Surplus Balance, beginning of year Transfer from equity in capital assets Prior period adjustment - Gravel crushing costs in 2000 previously not capitalized Net surplus from operations Balance, end of year $ 5,708,292 $ 4,703,497 12,254 - 1,000,000 8,178 4.795 $ 5,728,724 $ 5708 292 Statement of Equity in Capital Assets Balance, beginning of year Add (deduct): Repayment of debenture debt Proceeds from sale of capital assets Insurance proceeds Net transfers from operating fund Development levies Net transfers to capital reserves Original cost of capital asset disposals Transfer to accumulated surplus $ 16,754,855 $ 15,820,446 - 13,168 201,434 705,651 - 101,067 522,339 1,624,034 14,000 14,000 (133,487) (63,139) (528,800) (1,460,372) (12,254) - 63,232 934.409 Balance, end of year Operating Balance, beginning of year $..16.1.81 $ 16,754,855 Statement of Reserves $ 7,590,679 $ 8,042,673 Add (less): Net transfers from (to) operating fund 1,380,376 (451,994) its Balance, end of year 8,971,055 7,590,679 Capital Balance, beginning of year 281,042 217,903 Add: Net transfers from capital fund 133,487 63.139 Balance, end of year 414,529 281.042 Total Reserves $ 9,385,584 $ 7,871,721 3D O The accompanying notes are an integral part of these financial statements. 4 For the year ended December 31 Kneehill County Statement of Operating Activities Budget 2002 2001 (Unaudited) Property Taxes Requisition Transfers Net Taxes For Municipal Purposes - Schedule 1 Revenue Provincial government transfers Interest and patronage dividends Sales to other governments Sales and user charges Drilling licenses Fees, licenses, permits and fines Rentals Insurance proceeds Penalties and costs on taxes Local government transfers Local improvement charges Other Total Revenue Expenditures Salaries, wages and benefits Contracted and general services Purchases from other governments Materials, goods, supplies and utilities Transfers to other governments Transfers to local boards and agencies Transfers to individuals and organizations Debenture principal Debenture interest Bank charges and interest Property taxes cancelled Other Total Expenditures - Schedule 2 Excess of revenue over expenditures 10,188,160 $ 10,192,613 $ 9,698,283 (3,889,852) (3,889,853) (3,839,530) 6,298,308 6,302,760 5,858,753 1,884,191 1,113,485 1,483,687 404,500 302,374 519,942 9,000 11,525 8,392 145,550 252,102 222,206 40,000 46,550 50,715 40,700 37,435 34,446 22,881 25,445 36,985 - 15,277 5,200 30,500 79,496 51,044 124,850 125,633 117,739 34,614 34,614 37,088 24,350 30,443 67,686 2,761,136 2,074,379 2,635,130 9,059,444 8,377,139 8,493,883 2,194,680 2,194,074 2,059,890 3,853,712 2,358,337 3,251,533 154,600 130,215 142,344 1,848,450 1,362,550 1,421,072 130,000 130,009 132,997 40,358 37,904 36,199 241,034 214,786 202,755 - - 13,168 - - 1,580 4,500 2,686 1,395 26,000 35,656 53,939 29 176 493,334 8 6,466,246 7,317,048 , 566.110 1,910,893 1,176, 835 Transfers from (to) other funds Net transfers to capital fund (544,311) (522,339) (1,624,034) Net transfers from (to) operating reserves (16,593) (1,380,376 451,994 (560,904) (1,902,715) (1,172,040) Net surplus from operations $ 5,206 $ 8,178 $ 4,795 JThe accompanying notes are an integral part of these financial statements. 5 0 Kneehill County Notes to Financial Statements ~ December 31, 2002 1. Significant Accounting Policies The financial statements of Kneehill County are the representations of management prepared in accordance with local government accounting standards established by the Public Sector Accounting and Auditing Board of the Canadian Institute of Chartered Accountants. Significant aspects of the accounting policies adopted by Kneehill County are as follows: (a) Reporting Entity The financial statements reflect the assets, liabilities, revenues and expenditures, and changes in fund balances of the reporting entity. This entity is comprised of all the organizations that are owned or controlled by the Municipality and are therefore accountable to the Council for the administration of their financial affairs and resources. The schedule of taxes levied also includes requisitions for education, health, social and other external organizations that are not part of the municipal reporting entity. The statements exclude trust assets that are administered for the benefit of external parties. Interdepartmental and organizational transactions and balances are eliminated. (b) Fund Accounting Management funds consist of the operating, capital and reserve funds. Transfers between funds are recorded as adjustments to the appropriate equity account. Proceeds from land sales are recorded as operating fund revenues. (c) Basis of Accounting w The basis of accounting followed in the financial statement presentation includes revenues recognized in the period in which the transactions or events occurred that gave rise to the revenues and expenditures recognized in the period the goods and services are acquired and a liability is incurred or transfers are due, with the exception of pension expenditures as disclosed in Note 1(e). 11W , (d) Government Transfers Government transfers are recognized in the financial statements as revenues in the period that the events giving rise to the transfer occurred, providing the transfers are authorized, any eligibility criteria have been met by the municipality, and reasonable estimates of the amounts can be made. (e) Pension Expenditure w >m The County participates in a multi-employer defined benefit pension plan. This plan is accounted for as a defined contribution plan. (f) Investments Investments are recorded at cost. a I6 M Kneehill County Notes to Financial Statements d i December 31, 2002 1. Significant Accounting Policies - (Continued) do (g) Inventories Inventories of materials and supplies for consumption are valued at the lower of cost or net realizable value with cost determined by the average cost method. d9 Land held for resale is recorded at the lower of cost or net realizable value. Cost includes costs for land acquisition and improvements required to prepare the land for servicing such as clearing, 0.w stripping and leveling charges. Related development costs incurred to provide infrastructure such all as water and wastewater services, roads, sidewalks and street lighting are recorded as capital assets under their respective function. (h) Capital Assets Capital assets are reported as expenditures in the period they are acquired. Capital assets are reported at cost except for donated assets which are reported at estimated fair di value. Government contributions for the acquisition of capital assets are reported as capital revenue and do not reduce the related capital asset costs. Capital assets for government purposes are not depreciated. (i) Reserves for Future Expenditures Reserves are established at the discretion of Council to set aside funds for future operating and capital expenditures. Transfers to and/or from reserves are reflected as an adjustment to the respective fund. (j) Equity in Capital Assets Equity in capital assets represents the County's net investment in capital assets after deducting any long-term or other capital liabilities. (k) Use of Estimates The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenditure during the period. Where measurement uncertainty exists, the financial statements have been prepared within reasonable limits of materiality. Actual results could differ from those estimates. (1) Statement of Cash Flows A statement of cash flows has not been presented as the financial statements already adequately present the operating, financing and investing activities of the county. t Igo 7 December 31, 2002 Kneehill County Notes to Financial Statements 2. Inventories 2002 2001 Gravel Other transportation amounts Other Land held for resale $ 827,550 $ 1,296,315 263,594 283,890 31,824 37,549 16,494 16.494 $ 1,139,462 $ 1,634,248 3. Capital Assets 2002 2001 Land held for own use $ 437,507 $ 437,507 Buildings 2,084,189 2,078,082 Engineering structures 3,267,434 3,265,967 Minor machinery and equipment 771,644 756,878 MR Major machinery and equipment 6,917,123 6,911,997 Vehicles and power equipment 3,340.190 3.292.170 $ 16 $ 16,742.601 dill During the year, capital assets in the amount of $604,286 (2001-$2,381,613) were a cquired, and assets with an original cost of $528,800 (2001-$1,460,372) were disposed of or written off. im 4. Other Assets 2002 2001 to Loan - Three Hills Municipal Airport Commission $ - $ 5,000 Three Hills Water Waste Pipeline 1,000 - " Deposits 11,020 - Alberta Municipal Financing Corporation, shares, at cost 120 120 Mt. Vernon Water Co-op Association Ltd. membership 1 1 rw 1®~ $ 5. Deferred Revenue 2002 2001 i Public Health - F.C.S.S. $ 35,447 $ 14,139 Agricultural Services Grant - 7,000 r Bleriot Ferry Grant 13.390 $ 35,447 $ 34,529 B 8 Kneehill County Notes to Financial Statements December 31, 2002 2. Inventories 2002 2001 Gravel $ 827,550 $ 1,296,315 Other transportation amounts 263,594 283,890 Other 31,824 37,549 Land held for resale 16.494 16.494 $ 1,139,462 $ 1,634,248 3. Capital Assets 2002 2001 Land held for own use $ 437,507 $ 437,507 Buildings 2,084,189 2,078,082 Engineering structures 3,267,434 3,265,967 Minor machinery and equipment 771,644 756,878 Major machinery and equipment 6,917,123 6,911,997 Vehicles and power equipment 3,340,190 3.292.170 $_16,818.087 $ 1616601 During the year, capital assets in the amount of $604,286 (2001-$2,381,613) were acquired, and assets with an original cost of $528,800 (2001-$1,460,372) were disposed of or written off. 4. Other Assets 2002 2001 Loan - Three Hills Municipal Airport Commission Three Hills Water Waste Pipeline (Keiver's Lake) Membership Deposits Alberta Municipal Financing Corporation, shares, at cost Mt. Vernon Water Co-op Association Ltd. membership $ - $ 5,000 1,000 - 11,020 - 120 120 1 1 $12.141 $ 5,121 5. Deferred Revenue 2002 2001 Public Health - F.C.S.S. $ 35,447 $ 14,139 Agricultural Services Grant - 7,000 Bleriot Ferry Grant 13.390 $ 35,447 $ 34,529 f i 8 Kneehill County Notes to Financial Statements December 31, 2002 6. Reserves 2002 2001 Operating reserves Contingency Administration Disaster Services Transportation Kneehill Community Resource Program Capital reserves Torrington Administration Fire Ambulance Water Planning $ 7,948,673 $ 7,008,673 45,000 - 6,000 - 948,640 549,513 22,742 32,493 $ 8,971,055 $ 7,590.679 $ 53,300 $ 53,300 4,000 - 214,487 99,000 113,830 113,830 16,783 2,783 12.129 12.129 414,529 281.042 $ 9,385,584 $ 7,871,721 7. Contingent Liabilities a) Kneehill County is from time to time a defendant in various actions seeking damages for actions by, and events occurring in, the County. It is the opinion of management that the exposure to any j potential liability will be fully covered by the insurance in place for such events. b) Kneehill County is a member of the Alberta Local Authorities Reciprocal Insurance Exchange (ALARIE). Under the terms of membership, Kneehill County could become liable for its proportionate share of any claim losses in excess of the funds held by the exchange. e I9 No AOW. D Kneehill County Notes to Financial Statements December 31 2002 , 8. Salary and Benefits Disclosure Required disclosure of salaries and benefits for elected municipal officials, the chief administrative officer and designated officers, a s required by Alberta Regulation 313/2000, is as follows: 2002 2001 Salary Benefits & & Fees allowances Total Total (1) (2) (3) Councillor/Division Holsworth, Brian - 1 $ 17,520 $ 2,759 $ 20,279 $ 3,892 Calhoun, Carol -2 17,760 2,744 20,504 3,975 Wittstock, Jerry - 3 16,480 2,717 19,197 4,227 Woods, Murray -4 21,680 2,942 24,622 3,945 Crawford, Vern - 5 16,240 2,666 18,906 3,803 Hoppins, Ken -6 24,480 3,049 27,529 5,479 Knievel, Ken -7 16,400 2,684 19,084 3,972 Countv Administrator Deak, Jennifer $ 87,387 $ 6,983 $ 94,370 $ 89,864 Kiviaho, Gene 33,046 4,934 37,980 - (1) Salary includes regular base pay, bonuses, overtime, lump sum payments, gross honoraria and any other direct cash remuneration. Will (2) Employer's share of all employee benefits and contributions or payments made on behalf of employees including pension, health care, dental coverage, vision coverage, group life insurance, accidental disability and dismemberment insurance, long and short term disability plans, professional memberships and tuition. (3) Benefits and allowances includes the employer's share of travel and car allowances. 9. Debt Limits 2002 2001 Section 276(2) of the Municipal Government Act requires that debt and service on d ebt limits as defined by Alberta Regulation 255/00 for the County be disclosed as follows: Total debt limit $ 12,888,860 $ 13,971,901 Total debt - Amount of debt limit unused $ 12,888,860 $ 13 650 2 328 Debt servicing limit $ 2,148,143 $ , , Debt servicing " Amount of debt servicing limit unused $ 2,148,143 $ 2,328,650 J O 10 Kneehill County Notes to Financial Statements December 31, 2002 10. Comparative Figures Certain comparative figures have been reclassified to conform with the current year's presentation. 11. Local Authorities Pension Plan Employees of Kneehill County participate in the Local Authorities Pension Plan (LAPP), which is covered by the Public Sector Pension Plans Act. The Plan serves about 133,000 people and 389 employers. It is financed by employer and employee contributions and investment earnings of the LAPP Fund. Kneehill County is required to make current service contributions to the Plan of 5.025% of pensionable earnings up to the Canada Pension Plan Year's Maximum Pensionable Earnings and 6.9% for the excess. Total current service contributions by Kneehill County to the Local Authorities Pension Plan in 2002 were $62,150 (2001 - $54,016). Total current service contributions by the employees of Kneehill County to the Local Authorities Pension Plan in 2002 were $50,246 (2001 - $43,612). At December 31, 2001, the Plan disclosed an actuarial surplus of $635 million. 12. Approval of Financial Statements Council and Management approved these financial statements. 13. Financial Instruments The County's financial instruments consist of various assets and liabilities. It is management's opinion that the County is not exposed to significant interest, currency or credit risk arising from these financial statements. Unless otherwise noted, the fair value of these financial instruments approximates their carrying values. 14. Budget Amounts The 2002 budget for Kneehill County was approved by Council and has been reported in the financial statements for information purposes only. These budget amounts have not been audited. 11 J 1 Schedule 1 Kneehill County Schedule of Net Taxes For Municipal Purposes For the year ended December 31 Budget 2002 2001 (Unaudited) Property Taxes Farmland $ 2,006,159 $ 2,010,612 $ 2,385,974 Residential 1,625,819 1,625,819 998,209 Commercial 694,715 694,715 665,154 Linear property 4,647,760 4,647,761 4,465,776 Machinery and equipment 1,194,998 1,194,998 1,164,963 981 871 14 14 Railway 14,871 , , Grants in lieu 3,838 3,837 3,226 10,188,160 10,192,613 9,698,283 Less: Requisition transfers Alberta School Foundation Fund (3,870,770) (3,870,770) (3,820,295) Kneehill Foundation (19,082) (19,083) (19,235) (3,889,852) (3,889,853) (3,839,530) Net taxes for municipal purposes $ 6,298,308 $ 6,302,760 $ 5,858,753 t Igo 1 12 Aft Schedule 2 Kneehill County Schedule of Functional Operating Expenditures For the year ended December 31 Budget 2002 2001 (Unaudited) Legislative $ 240,900 $ 192,719 $ 218,797 Administrative 764,880 732,644 700,360 Fire protection 224,774 209,368 162,123 Disaster services 6,000 2,223 1,231 Ambulance 88,079 88,881 83,016 Utility and Development 20,700 24,728 9,485 Bridge inspection 255,250 88,425 768,113 Transportation 5,480,699 3,818,697 4,165,516 Water supply and distribution 71,889 52,726 58,300 Sewer services 50,150 39,255 38,748 Waste management 249,109 225,009 218,703 Public Health - F.C.S.S. 284,249 259,028 234,239 - K. C. R. P. 148,900 152,001 137,592 Cemetery 24,950 19,841 19,515 Planning and development 92,230 91,402 93,215 Agricultural services 304,000 283,164 223,345 nd recreation k P 186 575 186,135 184.750 ar s a , $ 8,493,334 $ 6,466,246 $ 7,317,048 low Schedule 3 Kneehill County Schedule of Functional Capita l Asset Expenditures For the year ended December 31 Budget 2002 2001 . (Unaudited) Administrative $ 107,300 $ 99,352 $ 46,051 Fire protection 16,961 - 50,597 Bylaw enforcementtradios - - 75,542 Bridge inspection - - 30,442 Water supply and distribution 500 2,080 12,217 Agricultural services 500 Parks and recreation 26,000 26,374 637 Transportation 496,550 476,480 2,166,127 $ 647,811 $ 604,286 $ 2,381,613 = JBDO - 14