The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

Page 6, Terrace Bay-Schreiber News, Wednesday, July 23, 1986 Suite 5900 Deloitte First Canadian Place PO Box 159 + Toronto, Ontario M5X 1H4 (416) 863 1315 Telex 065.24000 To the Chairman and Members of The Lake Superior Board of Education: Chartered Accountants We have examined the balance sheet of The Lake Superior Board of Education as at December 31, 1985 and the revenue fund statement of operations, the statement of revised net revenue fund requirement, the capital fund statement of operations, the reserve funds statement of continuity, the statement of outlay for performing duties of a municipal council in territory without municipal organization, and trust funds administered by the Board for the year then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests and other procedures as we considered necessary in the circumstances. In our opinion, these financial statements present fairly tt.e financial position of the Board as at December 31, 1985 and the results of its operations for the year then ended in ac- cordance with the accounting principles described in Note 1 to the financial statements applied on a basis consistent with that of the preceding year. We have aiso examined the schedules of assets and liabilities as at December 31, 1985 and the following schedules for the year then ended: Revenue fund schedule of revenue Revenue fund schedule of expenditure by function and economic classification Schedule of assessments and sharing ratios for 1985 Schedule of tuition fee revenue Schedule of tuition fee expenditure Schedule of debentures and capital loans Schedule of apportionment of school board requirement for 1985 Schedule of calculation of general legislative grants for 1985 Analysis of 1985 capital expenditure by project. : These schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. In our opinion, these schedules present fairly the information contained therein in all respects material to the financial statements. Deloitte Haskins & Sells Auditors Licence No. 1113 March 22, 1986 BALANCE SHEET AS AT DECEMBER 31, 1985 (with comparative amounts as at December 31, 1984) ASSETS 1985 1984 Current Assets $ $ Cash and term deposits 1,177,131 476,388 Investments at cost (Note 2) - 96,714 111,097 Accounts Receivable Under-requisitions - (elementary) 4,256 Under-requisitions - (secondary) ; 649 Other 1,048,243 1,176,579 Prepaid expense 19,831 38,288 Other current assets (Note 3) 8,414 _ 2,341,919 1,815,671 Capital Outlay to be recovered in future years 346,780 1,041,400 Other Assets (Note 12) 150,000 $ 2,838,699 $ 2,857,071 LIABILITIES Current Liabilities $ $ Bank and other short-term borrowing 23,519 Accounts payable and accrued liabilities Over-requisitions - (elementary) 3,363 7,204 Over-fequisitions - (secondary) 2,830 1,266 Other 908,896 615,216 Debt Charges due and unpaid Reserve for 1986 Tax Reduction- (elementary) - (secondary) Other current liabilities 40,467 955,556 647,205 Net long-term liabilities (Note 4) 346,780 1,041,400 Reserve for working funds (Note 6) 880,430 671,430 Equity in reserve funds (Note 7) 653,383 494,486 Unexpected capital funds 2,550 2,550 $ 2,838,699 $2,857,071 REVENUE FUND STATEMENT OF OPERATIONS : FOR ELEMENTARY SCHOOL PURPOSES For the year ended December 31, 1985 (with comparative amounts for the year ended December 31, 1985) EXPENDITURE 1984 1985 Business Administration $ 96,059 $ 69,353 General Administration 177,162 103,651 Computer Services 7,342 269 Instruction 3,169,624 © 2,614,125 Plant Operation, maintenance & teacherages 635,650 496,565 Transportation 217,970 173,904 Tuition Fees - : Capital expenditure (non-allocable) 364,305 579,900 Debt charges & capital loan interest 144,345 143,530 Other operating expenditure 8,542 10,379 Non-operating expenditure excluding transfers 70,828 8,453 to reserves Total Expenditure 4,891,827 4,200,129 RECOVERY OF EXPENDITURE Other school boards - tuition and miscellaneous 47,179 Government of Ontario - miscellaneous 2,760 Experience '85 : Government of Ontario 56,491 §5,532 Individuals - tuition fees so Other Revenue, excluding transfers from reserves 107,996 84,051 Total Recovery of Expenditure 214,426 139,583 NET EXPENDITURE * 4,677,401 4,060,546 Lake Superior Board of Education 1985 FINANCIAL STATEMENTS REVENUE FUND STATEMENT OF OPERATIONS FOR SECONDARY SCHOOL PURPOSES For the year ended December 31, 1985 : (with comparative amounts for the year ended December 31, 1984) EXPENDITURE 1985 1984 Business administration $ 117,406- $ 104,031 General administration 216,532 155,473 Computer services 8,974 404 Instruction 3,743,775 3,351,027 Plant operation, maintenance & teacherages 842,707 814,834: Transportation 187,790 187,553 Tuition fees 18,673 14,942 Capital expenditure (non-allocable) 92,324 : 7,838 Debt charges and capital loan interest 65,065 63,664 Other operating expenditure 8,311 15,568 Non-operating expenditures excluding transfers to reserves : 60,494 8,093 Total Expenditure 5,362,051 4,723,427 RECOVERY OF EXPENDITURE Other school boards - tuition fees and miscellaneous 2,004 3,411 Government of Ontario, miscellaneous 97,675 Government of Canada 223,178 237,708 Individuals - tuition fees 13,460 9,020 Other Revenue, excluding transfers from reserves 495,071 178,007 Total Recovery of Expenditure : 733,713 525,821 NET EXPENDITURE 4,628,338 4,197,606 FINANCING OF NET EXPENDITURE 1985 1984 Government of Ontario General Legislative Grants Local Taxation Previous year's over (under) requisition *6,859 (4,703) 2,644,675 2,535,884 Local taxation raised in the current year 2,270,092 1,892,042 Refund of taxes for reason of employees' withdrawal of services or lockout Decrease (increase) in reserves other than reserve for refund of taxes (290,458) (225,000) Total local taxation 1,986,493 1,662,339 To be applied to the following year's taxation Reserve for refund of taxes for reason of employees' withdrawal of services or lockout ( ) ( ) Net under (over) requisition : (2,830) (617) TOTAL FINANCING 4,628,338 4,197,606 *1984 over requisition: _ Per 1984 financial statements $° 617 Adjustments re 1984 6,242 As Above $ 6,859 CAPITAL FUND STATEMENT OF OPERATIONS For the year ended December 31, 1985 (with comparative amounts for the year ended December 31, 1984) CAPITAL EXPENDITURE . Fixed Assets & Work in Progress 1985 1984 Buildings, Furniture & Equipment 0141 $ 870,492 $ 713,588 School Sites & Improvements to Sites 0142 Pupil Transportation Vehicles 0143 Other 0144 Less Federal Sales Tax Refund 0145 { ) ( ) Total Capital Expenditure 0146 870,492 713,588 CAPITAL FINANCING Unexpended Funds at Beginning of Year, or (Balance at Beginning of Year not Permanently Financed) Elementary 0147 $ $ Secondary 0148 2,550 2,550 Long Term Liabilities issued & Sold 0149 ~--- Contributions from Government of Canada 0150 Capital Expenditure from the Revenue Fund 0151 870,492 713,588 Transfer to the Revenue Fund 0152 ( ) ( ) Balance at end of Year not Permanently Financed or (Unexpected Funds at End of Year) Elementary 0153 (2,550) (2,550) Secondary 0154 Total Capital Financing 0155 $ 870,492 $ 713,588 NOTE TO THE FINANCIAL STATEMENTS DECEMBER 31, 1985 1. 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 On- tario School Boards. These principles are in accordance with generally accepted accoun- ting principles except as follows: Accrual accounting Revenue and expenditure are accounted for by the accrual method except that: (a) No provision is made for interest on unmatured debenture debt from the date of the last principal payment to the end of the fiscal year. 3 (b) No provision is made to record the liability for retirement and/or sick leave benefits accruing over the working lives of employees. Fixed assets Fixed assets are charged to current expenditure unless financed by long-term debt. Prin- cipal and interest charges on net long-term. liabilities are included as expenditures in the period due. Fixed assets including capital léases, 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 pur- poses and are charged or credited to revenue fund operations in the year appropriated or drawn down. ' Underlover-requisition of taxes 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. CONTINUED ON NEXT PAGE..