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Page 15, News, Tuesday, June 4, 1991 LAKE SUPERIOR BOARD OF EDUCATION (ELEMENTARY and SECONDARY SCHOOLS) NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 1990 1. SIGNIFICANT 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 Ontario School Boards. These principles are in accordance with generally accepted accounting principles except as follows: Accrual accounting Revenue and expenditures are accounted for by the accrual method except that: (a) No provision is made for interest on unmature debenture debt from the date of the last principal payment to the end the fiscal year. (b) Provision is not 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. Principal and interest charges on net 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. Reserves and reserve funds 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. The amounts in reserves and reserve funds are approved by the Board and are within the limits defined in the Education Act. Under/over-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. 2. INVESTMENTS 1990 1989 Revenue fund - mortgages $36.917 $43,108 3. NET LONG-TERM LIABILITY 1990 1989 Unmatured debenture debt $871,082 $943,291 Repayments over the next five years are as follows: Principal Interest Total 1991 $79,013 $90,385 $169,398 1992 87,042 82,605 169,647 1993 90,467 74,173 164,640 1994 93,805 65,120 158,925 1995 102,755 55,583 158,338 Thereafter 418,000 118,035 536,035 $871,082 $485,901 __ $1,356,983 _ 4. DEBT CHARGES AND CAPITAL LOAN INTEREST The revenue fund expenditure for debt charges and capital loan interest includes principal and interest payments as follows: 1990 1989] Principal payments on long term liabilities $72,209 $21,154 Interest payments on long-term liabilities 97,488 14,028 $169,697 $35,182 5. RETIREMENT GRATUITIES PLANS The Board has established a reserve for retirement gratuities. The retirement gratuites are payable to employees on retirement after five years' continuous service provided one year's notice is given of the intent to retire. The gratuity is not vested. The amount paid in the current year in respect of retirement gratuities amounted to $24,771 ($37,364 in 1989). The reserve for retirement gratuities at December 31, 1990 is applicable to the elementary and secondary school operations of the Board as follows: 1990 1989 $268,288 $219,092 Elementary 311,651 216,431 Secondary $579,939 $435,523 The above amounts are included on the baince sheet in equity in reserve funds. THE LAKE SUPERIOR BOARD OF EDUCATION {ELEMENTARY and SECONDARY SCHOOLS) NOTES TO THE FINANCIAL STATEMENT DECEMBER 31, 1990 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 1990 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. 7. PRIOR YEARS' ADJUSTMENTS Adjustments to the prior years' grants from the Ministry of Education have been reflected in the current year as follows: Elementary Secondary Increase = (Decrease) 1989 $10,328 $(10,011) 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 $71,269 ($64,597 in 1989). 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' Pension Plan. 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's Insurance Exchange (OSBIE), a reciprocal insurance company licensed under the Insurance Act. OSBIE insures general public liability, property damage and certain other risks. Capital Expenditure bear _ Fixed Assets and Work in Progress Buildings, Furniture and Equipment $1,187,636 $2,092,109 School Sites and Improvements to Sites 712,597 = Pupil Transportation Vehicles = i Other ae 5 Less Federal Sales Tax Refund (195,351) Total Capital Expenditure $1,712,442 $2,092,109 Capital Financing = Unexpected Funds at Beginning of Year, or (Balance at Beginning of Year not Permanently Financed) Elementary Jee as Secondary = a Long-Term Liabilities Issued and Sold z 800,000 Contributions from Government Canada = a Capital Expenditure from the Revenue Fund 1,712,442 2,092,109 Transfer to the Revenue Fund ( ) ( 800,000 ) Balance at end of Year not Permanently Financed or (Unexpected Funds at End of Year) Elementary mn a Secondar = = : $1,712,442 2,092,109 Total Capital Financing = -- | as ; maT =P @ = Statement Of Outlay For Performing Duties Of A For the Year Ended December 31, 1990 ! Name of Area: Col. 1 Col. 2 Col. 3 Net Expenditure Total Expenditure on Account of (Col. 1 +Col.2) of Recreation Voters' Lists, Committee Elections, Levying and Collecting --Taxes ect. Lake Superior Locality = 1,043 1,043 Total : . 1,043 1,043 Statement Of Outlay For Performing Duties Of A For the Year Ended December 31, 1990 (Recoverable through levy on assessment in the applicable areas) Name of Area: Col. 1 Col. 2 Col. 3 Net Expenditure Total Expenditure on Account of (Col. 1 +Col.2) of Recreation Voters' Lists, Committee Elections, Levying and Collecting Taxes ect. Lake Superior Locality = 257. 257. Total = _957_ -957_