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Page 19, News, Tuesday, June 25, 1991 THE NORTH OF SUPERIOR R.C.S.S. BOARD Financial Statement 1990 AUDITORS' REPORT he N rior District Roman Catholi r 4, DEBT CHARGES AND CAPITAL LOAN I! TEREST . NOTES TO FINANCIAL STATEMENTS The revenue fund expenditures for debt c iarges and capital loan interest December 31, 1990 include principal and interest payments as follows: 14. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1990 1989 The financial statements of the Board have been prepared by management using accounting principles that are prescribed by the Ministry of lie = i py ear er oa aad ne 24 Education and are considered appropriate for Ontario School Boards. 100.296 47,432 These principles are in accordance with generally accepted accounting ae principles except as follows: idati The balance sheet presents the financial position of the Revenue, Capital Reserve, and Capital Funds on a consolidated basis. Separate statements of operations are presented for the Revenue and Capital Funds. The Revenue Fund is used to account for operational and administrative costs financed by the Province of Ontario, Government of Canada, participating organized and unorganized municipalities and miscellaneous sources. The Capital Fund is used to account for all capital expenditures. The Capital Reserve Funds represent funds appropriated for future capital projects which will be credited to Capital Fund Operations in the year of capital expenditure. IABILIT E ! NEFIT: Under the sick leave benefit plan, unused sick leave can accumulate to a certain maximum and, depending upon the number of days accumulated at the time of retirement, employees may become entitled to a cash payment, assuming that they are still employed by the Board at the time of their retirement. These financial statements include a nil payment ($17,045 in 1989) for accumulated sick leave benefits which have accrued to employees who have terminated employment in 1990. However, as stated in note 1, no provision has been made for the benefits accumulated to December 31, 1990 which might be payable upon retirement to those employees remaining on staff after December 31, 1990. This liability is estimated at Accrual accounting The accrual method of reporting revenue and expenditure has been used $301,700 at the year end. except for the following: interest charged on long-term liabilities is not accrued from the due date of payment to the end of the fiscal year, and; No provision has been made in these financial statements for the amount of sick leave benefits accumulated to December 31, 1990 which might be payable upon retirement to those employees remaining on staff after December 31, 1990 (see note 5). All non-teaching employees of the school board are eligible to be members of the Ontario Municipal Employees Retirement System (OMERS) which is a multi-employer final average pay contributory plan. Employer contributions made to the plan during the year by the Board amounted to $20,483 ($12,246 in 1989). These amounts have been included in employee benefits expense in the Schedule of Expenditures. Not shown in the financial statements of the Board are the employer's Fixed assets are charged to current expenditure unless financed by long- secletoms epee. obese The funding for such Is term debt. Principal and interest charges on long-term liabilities are included in expenditure in the period due. Th i -- INS = AN for a fi iod Fixed assets, described as capital outlay to be recovered in future years, e school board joined, effective daniiage 1007 te ee sete are included on the balance sheet only to the extent of the balances of the the Ontario School Board Insurancé Exchange, a reciprocal insuraneé related long-term liabilities outstanding and of the related temporary company licensed under the Insurance Act. OSBIE insures general public financing outstanding at the end of the fiscal year. liability, property damage and certain other risks. 8. SPECIAL GRANT On November 21, 1990 an Order In Council approved a special grant to the Board to alleviate the financial burden on the ratepayers of the board. Under the Order In Council this special grant, which amounted to $304,110 specific purposes and are charged or credited to Revenue Fund and which was received in December, 1990, was provided to specifically operations in the year appropriated or drawn down. The amounts in alleviate financial occurrences in prior years (1987 through 1989). reserve and reserve funds are approved by the Board and are within the Projected enrolment related to Hemlo mine Debentures are recorded as unmatured debenture debt in the year of sale. Reserves and reserve funds Reserves and reserve funds represent funds appropriated for general and limits defined in the Education Act. development which did not materialize as many Under/over requisition of taxes chose to enroll in the schools of the public board - The difference between the net expenditures of any year and the amounts| | cost of excess teacher hiring and loss of legislative received to finance these expenditures is carried forward to the| | grant. $106,674 subsequent year to either increase or decrease the net revenue Recruitment costs incurred to interview prospective requirement from rate payers. teachers 73,868 2. BANK INDEBTEDNESS - DEMAND LOAN Additional costs related to school building, site This unsecured demand loan with the Canadian Imperial Bank of| |aquisition and suitability of site to meet the Commerce is authorized by a borrowing resolution of the Board and bears} |requirements of the Ministry of Education and interest at the bank's prime lending rate (12.75% at year end) Ministry of Environment 59,608 3. LONG - TERM LIABILITIES Additional costs for assistance of financial Long-term liabilities consist of debentures outstanding of $63,672 and| | consultant 1988, 1989, and 1990 63,960 mortgages outstanding of $173,386. Over the next five years the principal 304,110 portion amounting to $217,610 and interest amounting to $40,960 are Less 1990 provision for consultative help (13,835) payable as follows: Grant relating to prior years 290,275 Principal interest Total In as much as the special grant of $290,275 covered prior years' $182,310 $26,047 $208,357 occurrences and was provided to offset the negative effect of these 1991 9.665 4,897 14.562 | | occurrences to the Board, and should not affect in any way the calculation 1992 7.855 4.065 411.920} | Of the 1990 general legislative grant and operating cost calculations, it has = 8.499 1 Oe ---'a4iga7 | _ [been Included tn the: 1900 financial siaipra of the board along with other ee 9.281 2.593 11,874 normal grant adjustments to prior years. The remaining $13,835 is included 217,610 40,960 258.570 * vs ee of Ontario balance in the Revenue Fund Statement of Current portion of long-term liabilities is comprised of the following: 9 RESERVE FOR WORKING CAPITAL : 1989 A reserve for working,capital of $225,000 was set up for the current year, as Mortgages due on demand $56,198 $59,885 follows: Mortgages due October 1, 1991 117,269 166,179 1990 Debentures - current portion 8,843 8,204 182,310 234,268 Balance, beginning of year Nil The nature of the collateral to support the mortgages is as follows: Provision for year $225,000 (a) Mobile home in Marathon and insurance; Balance, end of year 225,000 (b) Lot and mobile home in Marathon; and (c) Three properties in Manitouwadge and fire insurance. 10. SUBSEQUENT EVENT The board expects to renew the mortgages on October 1, 1991 for another year. On January 10, 1991, the Board issued a debenture for Holy Savior School in the amount of $202,000.