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Home My WebLink About1994 Financial StatementsC c r app COM~UT~~ C TTF~ t MUNICIPAL DISTRICT OF KNEEHILL #48 FINANCIAL STATEMENTS DECEMBER 31, 1994 KOIVGOS ALM =TT Aft% 'illad C 1 • Box 1207 KA N G A S 110-4th Avenue North 230-6th Street THREE HILLS. Alberta BEISEKER, Alberta A B L E T T TOM 2AO 443-5343 TOM OGO 947-2288 Fax 443-7107 Fax 947-2381 1-800-387-6581 Chartered Accountants Robert W. Kangas, B.Comm., C.A. James H. Abletl, B.Comm., C.A. Kevin M. Kotke, B.Comm., C.A. C AUDITORS' REPORT To the Reeve, Council and Ratepayers Municipal District of Kneehill # 48 We have audited the balance sheet of the Municipal District of Kneehill # 48 as at December 31, 1994 and 1993 and the statements t of equity, revenues, expenditures and net surplus, and change in cash resources the years then ended. These financial statements are the responsibility of the municipal 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 the municipality as at December 31, 1994 and 1993 and the results of its operations and change in cash resources for the years then ended in accordance with the accounting principles described in Note 1. a CHARTERED ACCOUNTANTS March 8, 1995 Three Hills, Alberta qA Members of the Institute of Chartered Accountants of Alberta 0 MUNICIPAL DISTRICT OF KNEEHILL # 48 BALANCE SHEET DECEMBER 31, 1994 ASSETS G"RRENT ash Term deposits Taxes receivable Trade and other accounts receivable Inventories (Note 2) Prepaid expenses CAPITAL ASSETS (Note 3) OTHER (Note 4) TRUST ASSETS (Note 5) LIABILITIES VRENT Accounts payable and accrued liabilities Deferred revenue (Note 6) TRUST LIABILITIES EQUITY ACCUMULATED SURPLUS EQUITY IN CAPITAL ASSETS RESERVES C APPROVED ON BEHALF OF COUNCIL: 1994 $ 123,910 6,950,000 217,536 294,547 1,862,615 46,389 9,494,997 12,934,660 35,480 30,759 $ 22,495,896 $ 688,229 140.986 829,215 30,759 859,974 4,201,262 12,934,660 4.500.000 21,635,922 $ 22,495,896 i 1993 $ 28,255 6,200,000 288,891 344,345 1,116,870 56,332 8,034,693 12,604,940 47,051 29,834 $ 20,716,518 $ 576,559 154,399 730,958 29,834 760,792 4,150,786 12,604,940 3,200,000 19,955.726 $ 20,716,518 KANGAS ABLETT C MUNICIPAL DISTRICT OF KNEEHILL # 48 STATEMENT OF REVENUE, EXPENDITURES AND NET SURPLUS YEAR ENDED DECEMBER 31, 1994 1994 1993. ^ 'Cb ert taxe p y s $ 9,347,875 $ 9,189 893 Requisition transfers 4,324,841 4,259,563 Net taxes available for municipal purposes - Schedule 1 5,023,034 4,930,330 Revenue Provincial government transfers 1,794,158 2,015,761 Interest and dividends 333,513 248,214 Sales and user charges 153,574 210,221 Licenses and permits 73,130 31,055 Equipment rental 50,394 24,705 Penalties and costs on taxes 47,943 57,422 Local government transfers 36,596 34,796 Local improvement charges 11,999 11,944 ,Other 35,775 69,897 2,537,082 2,704,015 ^l~Kal e revenu 7,560,116 7,634,345 Expenditures Salaries, wages and benefits 2,354,699 21654,488 Contracted and general services 1,656,658 11845,857 Materials, goods, supplies and utilities 1,536,761 1,679,856 Transfers to other governments 98,362 106,485 Transfers to local boards and agencies 39,885 391,345 Transfers to individuals and organizations 26,651 30,911 Bank charges and interest 4,526 244 Other 30,445 43,712 Total expenditures - Schedule 2 5,747,987 6,400,898 Excess of revenue over expenditures 1,812,129 1,233,447 Transfers to other funds Operating reserves 11300,000 600,000 apital fund 461,653 633,159 1,761,653 1,233,159 Net surplus from operations $ 50,476 $ 288 KANGAS ABLETT MUNICIPAL DISTRICT OF KNEEHILL # 48 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 1. SIGNIFICANT ACCOUNTING POLICIES The Municipal District of Kneehill # 48 follows generally accepted ~.r accounting principles except where modified by Alberta Municipal Affairs. Significant accounting policies include: a) Fund accounting 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 events giving. rise to the transfer occurred, providing the transfers are authorized, any eligibility criteria have been met by the. i Municipality, and reasonable estimates of the amounts can be made. 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 Q recognized. Road building costs, including road allowances purchased, are recorded as an operating fund 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. KANGAS ABLETT MUNICIPAL DISTRICT OF KNEEHILL # 48 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 1. SIGNIFICANT ACCOUNTING POLICIES (CONT'D) e) 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. f) Equity in capital assets Equity in capital assets represents the municipality's net investment in capital assets and land held for resale, after deducting any long-term or other capital liabilities. g) Statement of changes in financial position i A statement of changes in financial position has not been presented as the financial statements already adequately present the operating, financing and investing activities of the Municipality. 2. INVENTORIES 1994 1993 Gravel Other transportation amounts Other functions $ 1,540,973 $ 839,287 303,582 254,565 18,060 23,018 $ 1,862,615 $ _1,116,870 3. CAPITAL ASSETS 1994 1993 Land for own use Buildings Engineering structures Minor machinery and equipment Major machinery and equipment Vehicles and power equipment Land held for resale $ 247,242 $ 245,573 1,772,359 1,770,427 1,885,472 1,628,357 770,842 742,834 5,696,999 5,573,176 2,554,576 2,639,203 12,927,490 12,599,570 7,170 5,370 $ 12,934,660 $ 12 604 940 KAI J BLETT C MUNICIPAL DISTRICT OF KNEEHILL # 48 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 4. OTHER ASSETS C Trochu Recreation Loan Alberta Municipal Financing Corporation shares, at cost 5. TRUST ASSETS AND LIABILITIES 1994 $ 35,360 120 $ 35,480 1994 Britestone Huttarian Brethren Tax sale trust account low- 6. DEFERRED REVENUE $ 25,470 5,289 $ 30,759 1994 Family and community support services grants Infrastructure grant Equity water project deposits $ 109,106 28,430 3,450 $ 140,986 1993 $ 46,931 120 $ 47,051 1993 $ 25,326 4,508 $ 29,834 1993 $ 154,399 $ 154,399 7. PRIOR PERIOD ADJUSTMENT The Municipal District has just completed the last year of a four year project to reconcile the amounts in the capital asset accounts to a physical inventory of capital assets on hand. The ® reconciliation of minor machinery and equipment has produced a prior period adjustment of $ 83,006, which represents the original capital cost of assets not previously recorded in the accounts. The December 31, 1993, capital asset balances were further adjusted by transfers of assets at cost from vehicles and power equipment to minor and major machinery and equipment for $ 3,000 and $ 62,800 respectively. KANGAS ABLETT MUNICIPAL DISTRICT OF KNEEHILL # 48 NOTES TO FINANCIAL STATEMENTS DECEMBER 31. 1994 8. RESERVES Reserve amounts consist of operating reserves only. These amounts have been designated as contingency reserves of $ 4,000,000 (1993 - $ 2,700,000) and transportation reserves of $ 500,000 (1993 - $ 500,000). 9. SALARY AND BENEFITS DISCLOSURE 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: 1994 1993 Salary Benefits & Fees & Allowances Total Total i (1) (2) (3) Councillor/Division Lowen, Marylea - 1 $ 14,226 $ 6,114 $ 20,340 $ 19,441 Hoff, Otto - 2 12,664 4,433 17,097 17,998 Boake, Robert - 3 15,416 6,256 21,672 21,785 Marz, Richard - 4 18,724 6,374 25,098 21,572 Hanger, James - 5 12,056 41033 16,089 17,659 Vickery, Richard - 6 ' 16,956 6,988 23,944 21,493 Wagstaff, Glen - 7 16,116 5,643 21,759 21,732 Municipal Administrator Jeffery, John C. 66,997 8,202 75,199 83,559 (1) Salary includes regular base pay, bonuses, overtime, 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. KANGAS ABLETT MUNICIPAL DISTRICT OF KNEEHILL # 48 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 4 10. UNFUNDED PENSION LIABILITY All permanent, full time employees of the Municipal District of Kneehill participate in the Local Authorities Pension Plan. Current and past service pension benefit contributions are recorded as expenditures in the year in which they become due. Total current and past service contributions by the Municipal District to the Local Authorities Pension Plan in 1994 were $ 71,879 (1993 - $ 81,461). Total current and past service contributions by the employees to the Local Authorities Pension Plan in 1994 were $ 67,049 (1993 - $ 77,169). An actuarial valuation of the Local Authorities Pension Plan was carried out as at December 31, 1993, by William M. Mercer Limited. The resulting actuarial report disclosed an unfunded liability of $ 893.2 million. The Municipal District of Kneehill's share of this amount has been calculated as $ 139,764, based on pensionable salaries as at December 31, 1994. The provisions of the legislation relating to the Plan require that the unfunded liability in the Plan must be eliminated on or before December 31, 2036. Additional contributions are to be paid annually by the Crown in the aggregate amount of 30% of the total required, and 35% each by the employers and employees based on the pensionable salaries of the employees, to eliminate the unfunded liability. 11. DEBT LIMITS Section 271 of the Municipal Government Act requires that debt and debt limits as defined by Provincial Regulation 375/94 for the Municipal District of Kneehill # 48 be disclosed as follows: 1994 1993 Total debt limit $ 11,340,174 $ 11,451,518 Total debt - Amount under total debt limit $ 11,340,174 $ 11t451,518 Service on debt limit $ 1,890,029 $ 1,908,586 Service on debt - Amount under service on debt limit $ 1,890,029 $ 1,9081586 KANOAS ABLETT MUNICIPAL DISTRICT OF KNEEHILL # 48 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 12. CONTINGENT LIABILITY C The Municipal District is a member of the Alberta Local Authorities Reciprocal Insurance Exchange (ALARIE). Under the terms of membership, the municipal District could become liable for its proportionate share of any claim losses in excess of the funds held by the exchange. Any liability incurred would be accounted for as a current transaction in the year the losses are determined. i G KANGAS ABLETT MUNICIPAL DISTRICT OF KNEEHILL # 48 SCHEDULE OF NET TAXES AVAILABLE FOR MUNICIPAL PURPOSES YEAR ENDED DECEMBER 31, 1994 Schedule 1 1994 1993 operty taxes Farmland Residential Industrial Commercial Linear property Grants in lieu Requisition transfers Alberta School Foundation Fund Basic Additional Kneehill Foundation Alberta Planning Fund Olds Hospital District i Three Hills Hospital District Qt taxes available for municipal purposes G $ 2,844,398 $ 2,869,387 503,655 472,009 1,774,935 1,717,725 177,325 174,363 41046,566 31955,285 996 1,124 9,347,875 3,169,252 1,064,922 57,653 25,072 7,942 9,189,893 3,114,234 1,046,443 57,308 24,727 3,428 13,423 4,324,841 $ 5,023,034 4,259,563 $ 4,930,330 KANGAS ABLETT MUNICIPAL DISTRICT OF KNEEHILL # 48 SCHEDULE OF FUNCTIONAL EXPENDITURES YEAR ELIDED DECEMBER 31, 1994 1994 Schedule 2 1993 Legislative $ 145,999 Administrative 609,660 Fire protection 53,808 Ambulance 26,905 Utility and development 99,933 Transportation and bridge inspection 41212,435 Water supply and distribution 11,376 Sewer services 11623 Waste management 160,305 Family and community support services 110,081 Cemetery 71723 Agricultural services 179,072 Parks and recreation 129,067 $ 5,747,987 C C $ 153,890 591,915 62,501 26,835 163,118 4,777,426 16,063 2,042 159,444 108,888 13,014 179,056 146,706 $ 6,400,898 KANGA5 ABLETT