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Home My WebLink About2000 Financial StatementsKneehill County Financial Statements For the year ended December 31, 2000 Contents Auditors' Report 2 Financial Statements Balance sheet 3' Statement of Municipal Equity 4 Statement of Operating Activities 5 Notes to Financial Statements 6-10 Supplementary Information Schedule Schedule of Net Taxes for Municipal Purposes 1 Schedule of Functional Operating Expenditures 1 Schedule of Functional Capital Asset Expenditures 1 O I c IBDO~ 0 1500, 800-6 Avenue S.W. BDO Dunwoody LLP Chartered Accountants Calgary Alberta Canada T2P 3G3 Telephone: (403) 266-5608 and Consultants Fax: (403) 233-7833 Auditors' Report To the Reeve, Council and Ratepayers Kneehill County We have audited the balance sheets of the Kneehill County as at December 31, 2000 and the statements of municipal equity and operating fund activities for the year then ended. These financial statements are the responsibility of the County's administration. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform our audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by administration, as well as evaluating the overall financial statement presentation. In our opinion, these financial statements present fairly, in all material respects, the financial position of Kneehill County as at December 31, 2000 and the results of its financial activities for the year then ended in accordance with the accounting principles described in Note. 2. The comparative figures were reported upon by other auditors. Chartered Accountants Calgary, Alberta March 8, 2001 2 BDO Dunwoody LAP is a Limited Liability Partnership registered in Ontario i Kneehill County Balance Sheet December 31 2000 1999 Assets Current Cash $ 4,402,057 $ 476,684 Term deposits 7,500,000 10,000,000 Taxes receivable 255,208 275,484 Trade and other accounts receivable 490,135 583,968 Inventories (Note 2) 848,550 1,149,761 Prepaid expenses 74,194 62.986 13,570,144 12,548,883 Capital assets (Note 3) 15,837,854 15,350,164 Other assets (Note 4) 16,254 12,956 l T T S A e rust ax a ccount 15,008 15.008 $ 29,439,260 $ 27,927,011 Liabilities Current Accounts payable and accrued liabilities $ 268,957 $ 516,134 Vested sick leave benefits 257,548 251,669 Deferred revenue (Note 5) 100,060 78,318 Current portion of debenture debt 13.168 11.757 639,733 857,878 Debenture Debt (Note 6) - 13,168 Tax Sale Trust Account 15,008 15.008 $ 654,741 $ 886,054 Municipal Equity Accumulated Surplus $ 4,703,497 $ 4,696,814 Equity in Capital Assets 15,820,446 15,321,000 Reserves (Note 7) 8.260.576 7.023.143 28.784.519 27.040.957 $ 29,439,260 $ 27,927,011 Contingent Liabilities (Note 8) On behalf of the Council: 1 Reeve Muncipal Administrator 10 The accompanying notes are an integral part of these financial statements. I 3 Kneehill County Statement of Municipal Equity For the year ended December 31 2000 1999 Statement of Accumulated Surplus Balance, beginning of year Net surplus from operations Balance, end of year $ 4,696,814 $ 4,692,623 6.683 4.191 $ 4,703,497 $ 4,696,814 Statement of Equity in Capital Assets Balance, beginning of year Add (deduct): Repayment of debenture debt Proceeds from sale of capital assets Contributions from operating fund Proceeds from Provincial capital grants Development levies Transfers from capital reserves Transfers to capital reserves Original cost of capital asset disposals Contribution to operating fund Cost of land held for resale disposals Balance, end of year Operating Balance, beginning of year Transfer to operating fund Transfer from operating fund Balance, end of year Capital Balance, beginning of year Transfer to capital fund Transfer from capital fund Balance, end of year Total Reserves $ 15.321.000 $ 14.500.612 11,757 10,497 600 459,036 504,040 1,025,699 - 4,000 1,889 598 35,803 137,727 (1,889) (1,502) (43,055) (812,399) (9,699) - (3.268) 499.446 820.388 $..1.56820 15321,000 Statement of Reserves $ 6,771,326 $ 8,131,226 (1,359,900) 1.271.347 - 8,042,673 6,771,326 251,817 388,042 (35,803) (137,727) 1.889 1.502 217.903 251.817 $ 8,260,576 $ 7,023,143 The accompanying notes are an integral part of these financial statements. 4 J310 A*A Kneehill County Statement of Operating Activities For the year ended December 31 2000 1999 loft. Property Taxes $ 10,228,670 10,008,800 ' Requisition Transfers 4,564,792 4,519,140 Net Taxes For Municipal Purposes - Schedule 1 5,663,878 5,489,660 Revenue Provincial government transfers 3,465,221 1,119,584 Interest and patronage dividends 620,976 550,771 Sales and user charges 192,783 191,932 Land sales - 3,268 Drilling licences 59,789 22,945 Fees, licences, permits and fines 31,143 30,696 Rentals 30,695 21,194 Insurance proceeds 26,549 - Penalties and costs on taxes 56,769 55,260 Local government transfers 128,565 46,422 Local improvement charges 62,297 36,505 Other 19,786 16,502 4,694,573 2,095,079 Total Revenue 10,358,451 7,584,739 Expenditures Salaries, wages and benefits 1,952,334 2,047,591 Contracted and general services Purchases from other governments 4,634,717 94,301 3,795,060 Materials, goods, supplies and utilities 1,493,190 1,683,887 Transfers to other governments 123,501 123,497 Transfers to local boards and agencies 24,544 39,297 Transfers to individuals and organizations 216,145 196,492 Debenture principal 11,757 10,497 Debenture interest 2,991 4,251 Bank charges and interest 3,904 4.229 Property taxes cancelled 27,641 9,948 Other 1,055 Total Expenditures - Schedule 2 8,586,080 7,914,749 Excess (deficiency) of revenue over expenditures 1,772,371 (330,010) Transfers from (to) other funds Capital fund Operating reserves Net surplus from operations (494,341) (1,025,699) (1,271,347) 1,359,900 (1,765,688) 334,201 $ 6,683 $ 4,191 0 The accompanying notes are an integral part of these financial statements. 5 13D0 Kneehill County C Notes to Financial Statements December 31, 2000 1. Significant Accounting Policies Kneehill County follows generally accepted accounting principles in accordance with the local government accounting standards established by the Public Sector Accounting and Auditing Board of the Canadian Institute of Chartered Accountants. Significant accounting policies include: (a) Fund Accounting Kneehill County prepares its financial statements using the accrued basis of accounting, with the exception of capital assets (Note 1 (d)). For financial reporting purposes, established funds consist of the operating, capital and reserve funds. The operating and capital funds are further segregated by functions which relate to specific areas of activity. (b) Government Transfers Government transfers are recognized in the financial statements as revenues in the period that the vents giving rise to the transfer occurred, providing the transfers are authorized, eligibility criteria have been met by the municipality, and the amounts can be reasonably determined. (c) Inventory Gravel inventories are valued at pit cost (including crushing, stripping and royalties) plus applicable trucking costs when stockpiled. All other material and supply inventory is valued at the lower of cost and net realizable value, cost being determined on a specific identification basis. (d) Capital Assets Capital assets are recorded at cost; cost is not reduced by any applicable government assistance. No depreciation or amortization is charged to operations. Proceeds on disposition of capital assets are recorded as revenue of the capital fund with the assets removed from the accounts at cost; no gain or loss on dispositions are recognized. Road building costs, including road allowances purchased, are recorded as an operating fund low V expenditure. Minor and major machinery and equipment is segregated in that minor machinery and equipment consists only of those assets with an original cost of less than $10,000. Land held for resale is recorded at cost. Proceeds from the sale of such lands are recorded as operating fund revenue. (e) Interest on Debenture Debt Interest on long-term debt is recorded as an expenditure as payment is made; no accrual for interest payable on long-term debt is made at the year end. Principal repayments are charged as an expenditure of the operating fund with a corresponding increase in equity in capital assets. 6 I , 0 Kneehill County C. Notes to Financial Statements December 31, 2000 WN r+ 1. Significant Accounting Policies - (Continued) (f) Reserves Reserves are established at the discretion of Council to set aside funds for future operating and capital expenditures. Transfers to and/or from operating reserves are reflected as an adjustment to the operating fund while transfers to and/or from the capital reserves are shown as an adjustment to equity in capital assets. (g) Equity in Capital Assets Equity in capital assets represents the County's net investment in capital assets and land held for resale, after deducting any long-term or other capital liabilities. (h) Use of Estimates The preparation of financial statements in accordance with 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 amount of revenues and expenses during the reporting period. These estimates are reviewed periodically, and, as adjustments become necessary, they are reported in earnings in the period in which they become known. (i) 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. 2. Inventories 2000 1999 Gravel Other transportation amounts Other $ 586,495 $ 820,398 231,544 230,521 30.511 98,842 $ 848,550 $ 1,149, 761 3. Capital Assets Land held for own use Buildings Engineering structures Minor machinery and equipment Major machinery and equipment Vehicles and power equipment Land held for resale 2000 1999 $ 437,507 $ 390,603 2,060,593 1,870,327 3,178,207 3,149,191 753,026 746,274 5,944,225 5,962,628 3,447,802 3.214.647 15,821,360 15,333,670 16.494 16.494 $ 15.83 $ 15,350J64 During the year, capital assets in the amount of $530,745 (1999-$1,625,558) were acquired, and assets with an original cost of $43,055 (1999-$812,399) were disposed of or written off. 7 J310 IMF Kneehill County Notes to Financial Statements December 31, 2000 4. Other Assets 2000 1999 Loans Three Hills Municipal Airport Commission $ 10,000 $ 10,000 Trochu Recreation Area (overpayment) 6,133 (3,019) Alberta Municipal Financing Corporation, shares, at cost 120 120 Kneehill Regional Water Commission trust - 5,854 Mt. Vernon Water Co-op Association Ltd. membership 1 1 $ 16,254 $ 12,956 The loan to the Three Hills Municipal Airport Commission, advanced to assist in the purchase of an aviation fuel system, is to be repaid from a surcharge levied on the sale of each litre of fuel. The loan to the Town of Trochu is being repaid from the proceeds of an annual tax levy on the Trochu jV*h Recreation Area, less the yearly operating deficiency of the Town of Trochu swimming pool. Over- levies are carried forward. 5. Deferred Revenue 2000 1999 Public Heath - F.C.S.S. - K.C.R.P. Agricultural Services Grant Bleriot Ferry Grant Kneehill Regional Water Commission Trust Other $ 14,049 $ 19,836 45,085 22,372 27,536 16,856 13,390 13,390 - 5,854 10 $ 100,060 $ 78,318 6. Debenture Debt 2000 1999 Alberta Municipal Financing Corporation, repayable in annual instalments of $14,748 including interest at 12.0%, matures September, 2001 Less: Current portion $ 13,168 $ 24,925 (13.168) (11.757) $...13h1l Scheduled debenture debt service is as follows: Principal Interest Total 2001 $i $ 1.580 $ 14,748 Debenture debt is issued on the credit and security of Kneehill County at large. The Province provides interest stabilization grants dependent on rates and dates of debentures. During the year, interest stabilization grants of $227 (1999 - $322) were received from the Province of Alberta. Accrued and unrecorded interest as at December 31, 2000 was $463 (1999-$877). 8 I_ Kneehill County Notes to Financial Statements December 31, 2000 7. Reserves 2000 1999 Operating reserves Contingency $ 7,542,673 $ 6,271,326 Transportation 500.000 500.000 8.042.673 6.771.326 Capital reserves Torrington 205,774 241,577 Planning 12.129 10.240 217.903 251.817 $ 8,260,576 $ 7,023,143 ® 8. 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 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. 9. Salary and Benefits Disclosure Required disclosure of salaries and benefits for elected municipal officials, the chief administrative officer and designated officers, as required by Provincial Regulation 379/94, is as follows: 2000 1999 Salary Benefits & & Fees allowances Total Total (1) (2) (3) Councillor/Division Lowen, Marylea - 1 $ 21,120 $ 775 $ 21,895 $ 21,434 Hoff, Otto -2 23,600 295 23,895 24,400 Allan, Mary Jane -3 10,560 475 11,035 18,258 Vetter, Marjorie -4 20,640 729 21,369 18,898 Hanger, James -5 20,440 649 21,089 15,595 Vickery, Richard -6 23,480 914 24,394 26,421 Wagstaff, Glen -7 18,640 614 19,281 17,829 County Administrator Deak, Jennifer $ 67,010 $ 7,133 $ 74,143 $ - Jeffery, John C. - - - 198,932 JBDO 9 ~r+ Kneehill County Notes to Financial Statements December 31, 2000 9. Salary and Benefits Disclosure (Continued) (1) Salary includes regular base pay, bonuses, overtime, retiring allowances, early retirement incentives, lump sum payments and any other direct cash remuneration. (2) Employer's share of all benefits and contributions or payments made on behalf of employees including Local Authorities Pension, Canada Pension Plan, Unemployment Insurance, health care, dental, group life and other insurance, professional memberships and tuition. (3) Benefits and allowances includes the employer's share of travel and car allowances. 10. Debt Limits 2000 1999 Section 276(2) of the Municipal Government Act requires that debt and service on debt limits as defined by Provincial Regulation 375/94 for the County be disclosed as follows: Total debt limit Total debt Amount under total debt limit Service on debt limit Service on debt Amount of service on debt limit available $ 15,537,677 $ 11,377,109 14,748 24.925 15,522,929 $ 11,352,184 $ 2,589,613 $ 1,896,185 14,748, 14.748 $ 2,574,865 $ 1,881,437 11. Comparative Figures Certain comparative figures have been reclassified to conform with the presentation and accumulation format adopted for the current year. 10 jBDO Schedule 1 Kneehill County Schedule of Net Taxes For Municipal Purposes For the year ended December 31 2000 1999 Property Taxes Farmland $ 2,559,424 $ 2,562,447 Residential 944,258 828,113 Industrial 401,109 390,711 Commercial 315,147 193,723 Linear property 4,814,721 4,915,181 Machinery and equipment 1,173,776 1,094,539 Railway 16,798 20,710 Grants in lieu 3,437 3.376 10,228,670 10.008.800 Requisition transfers Alberta School Foundation Fund 4,525,992 4,480,335 ® Kneehill Foundation 38,800 38.805 4,564,792 4.519.140 Net taxes for municipal purposes $ 5,663,878 $ 5,489,660 Jok, 11 I t Schedule 2 APK Kneehill County Schedule of Functional Operating Expenditures Agpkk For the year ended December 31 2000 1999 Legislative $ 179,655 $ 184,640 Administrative 565,786 689,648 Fire protection 150,472 110,062 Disaster services - 2,552 Ambulance 11,360 - Utility and development 76,939 46,637 Transportation and bridge inspection 6,412,768 5,645,750 Water supply and distribution 31,530 52,557 Sewer services 16,189 15,684 Waste management 276,373 194,138 Public Health - F.C.S.S. 231,097 223,112 - K.C.R.P. 113,637 46,082 Cemetary 14,496 14,056 Planning and development 85,003 100,517 C Agricultural services 234,312 421,268 Parks and recreation 186,463 168.046 $ 8,586,080 $ 7,914,749 4: J"N I 12 Schedule 3 Kneehill County Schedule of Functional Capital Asset Expenditures For the year ended December 31 2000 1999 C Administrative Fire protection Ambulance services Transportation and bridge inspection Water supply and distribution Agricultural services Parks and recreation Capital acquisitions were funded by: $ 25,473 $ 11,136 433,542 104,591 113,830 45,026 1,331,385 26,704 - - 34,931 29.685 $ 530,7455 $ 1,625,558 Proceeds from sale of capital assets $ 600 $ 458,132 Proceeds from provincial capital grants - 4,000 Transfers from capital reserves 26,105 137,727 Contributions from operating fund 504.040 1.025.699 $ 530,745 $ 1,625,558 C 13 I ,,*we Schedule 3 Kneehill County Schedule of Functional Capital 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 enforcement/radios - 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 C I3D0 14 0