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

Page 7, News, Wednesday, July 20, 1988 STATEMENT OF OUTLAY FOR PERFORMING DUTIES OF A CAPITAL FUND STATEMENT OF OPERATIONS MUNICIPAL COUNCIL IN TERRITORY WITHOUT MUNICIPAL FOR THE YEAR ENDED DECEMBER 31, 1987 ORGANIZATION FOR THE YEAR ENDED DECEMBER 31, 1987 (with comparative amounts for the year ended December 31, 1986) (Recoverable through levy on assessment in the applicable areas) CAPITAL EXPENDITURE 1987 1986 Lake Superior Board of Education Fixed Assest and Work in Progress Elementary Buildings, Furniture & equipment 0141 $3,793,662 $1,089,056 - 3 School Sites & Improvement to Sites 0142 2,532 270,963 Name of Area {| Net Expenditure | Expenditureon | TOTAL Pupil Transportation Vehicles 0143 ofa account of (Col 1 + Col 2) Other 0144 Recreati ters, lists, Conadites ancien Less Federal Sales Tax Refund 0145 = ) ( ) levying and Total Capital Expenditure 0146 $3,796,194 $1,360,019 collecting CAPITAL FINANCING taxes, etc Unexpended Funds at Beginning of Year, or (Balance at Beginning of Year not Permanently ye Financed) Superior Locality : 1,000 1,000 Secmstont as?! $ $ 2.550 Long Term Liabilities Issued and Sold 0149 Sue Contributions from Government. of Canada _ 0150 ° TOTAL 7,000 1,000 Capital Expenditure from the Revenue Fund 0151 3,796,194 1,360,019 - Transfer to the Revenue Fund O152- ) ( 2,550) Lake S ior Board of Educati Balance at end of Year not Permanently ony Sa ae en Financed or (Unexpended Funds at End of Secondary Year) oo Elementary 0153 Superior Locality 1,000 1,000 ee TOTAL 4,000 1,000 Total Capital Financing 0155 $3,796,194 $1,360,019 2 INVESTMENTS 1987 1986 Revenue fund - mortgages $64,393 $81,177 3. NET LONG-TERM LIABILITY 1987 1986 4. DEBT CHARGES AND CAPITAL LOAN. INTEREST Unmatured debenture debt $218,508 $285,353 The revenue fund expenditure for debt charges and capital loan interst includes Repayments over the next five years are as follows: principal and interest payments as follows: Principal Interest Total 1987 1986 1988 $54,063 $18,003 $72,066 ao Ah. ae pip Principal payments on long-term liabilities $66,846 $61,427 : ; : Interst payments on long-term liabilities 22,609 26.841 1991 25,013 10,285 35,298 $88,268 1992 27,042 4,184 31,226 260.405 Thereafter 68.028 12,386 80,414 18,508 $ 71,130 $289,638 oe RESERVE FOR RETIREMENT GRATUITIES : The Board has established a reserve for retirement gratuities. The retirement gratuities are payable to employees on retirement after five years' continuous service provided one year's notice is given of the intent to retire. The reserve for retirement gratuities at December 31, 1987 is applicable to the elementary and secondary school operations of the Board as follows: 1987 1986 Elementary $150,025 $42,906 Secondary 89.637 59,100 - $239,662. $102,006 The above amounts are included on the balance sheet in equity in reserve funds. 6. AREAS OF JURISDICTION WITHOUT MUNICIPAL ORGANIZATION The Board performs the duties of levying and collecting taxes in the territory without municipal organization of the Lake Superior Locality. The amounts required from this area for 1987 include outlay by the Board in respect of performing duties of a municipal council. This outlay is not included in the revenue fund statement of operations of the Board. The amounts are reported by area in a separate statement. 73 PRIOR YEAR'S ADJUSTMENTS Grants from the Ministry of Education in respect of the year ended December 31, 1986 for secondary schools have not yet been finalized. Adjustments, reflected in the prior year, to the grants from the Ministry of Education in respect of the year ended December 31, 1985 resulted in an increase in the 1985 grant for elementary schools of $16,701 and an increase in the 1985 grant for secondary school of $22,432. In respect of the year ended December 31, 1986 an increase in the grant for elementary schools of $4,452 has been reflected. 8. NET EXPENDITURES BY MUNICIPALITIES The amounts of the net expenditures allocated to each of the participating municipalities have been determined on the basis of available information. Adjustments of Provincial grants for current and/or prior years may change these allocations. 9. PENSION PLAN COSTS All non-teaching employees of the school board are eligible to be members of the Ontario Municipal Employees Retirement System which is a multi-employer final average pay contributory plan. Employer contributions made to the plan during the year by the Board amounted to $49,032 (1986 - $44,523). These amounts have been included in employee benefits expense in the Schedule of Expenditure. Not shown in the financial statements of the Board are the employer's contributions to the Teachers' Superannuation Fund. The funding for such is provided directly by the Provincial Government. 10. ONTARIO SCHOOL BOARD INSURANCE EXCHANGE ' The school board joined, effective April 19, 1987, for a period, ending December 31, 1991, the Ontario School Board Insurance Exchange(OSBIE), a reciprocal insurance company licensed under the Insurance Act. OSBIE insures general public liability, property damage and certain other risks. At. CONTRACTUAL OBLIGATIONS The Lake Superior Board of Education (Elementary and Secondary Schools) NOTES TO THE FINANCIAL STATEMENTS December 31, 1987 ACCOUNTING PRINCIPLES S 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 Ontario School Boards. These principles are in accordance with generally accepted accounting principles except as follows: ~ 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. (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 are charged to current expenditure unless financed by long-term debt. Principal and interest charges on the long-term liabilities are included as expenditures in the period due. Fixed assets including capital leases, 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. eserve 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. ver-requisiti e 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. The school board has committed to a sum of $6,994,153 for the construction of a new high school in Marathon. Of this committment $2,539,997 has been spent in 1987 and is included in capital expense in the Schedule of Expenditure