Financial Statements

Each year the Township is audited by an external auditing firm. This firm verifies that financial matters related to the Township are carried out in accordance with Public Sector Accounting Board standards. Township financial statements are presented to Council.

Audited Financial Statements

For more information please see the year end audited financial statements listed below.

2017 Audited Financial Statement

Understanding the Audited Financial Statements

Ontario municipalities are required to follow the Public Sector Accounting Board (PSAB) recommendations of the Chartered Professional Accountants of Canada for reporting their annual audited financial statements.  This reporting format is different than the requirement of  the Municipal Act for setting tax rates and the related tax rate budget.  The major differences for the Township of North Kawartha are as follows:

The PSAB format records all capital as an asset, amortization is provided on the assets, revenue for the purchase of capital assets is recorded as revenue when received while the asset is amortized over its estimated useful life, the annual cost for the landfill liability is recorded as an expense, transfers to and from reserves and reserve funds are not reported as revenue or expense.  

The tax rate budget records all capital purchases as an expense and as a result there is no amortization,  only costs expected to be spent in the year are recorded for the landfill expense therefore no future costs are included, transfers to and from reserves and reserve funds are treated as a revenue or expense.

In the audited financial statements the Accumulated Surplus notes are key to understanding the financial statements.  As an example in Note 7 and 8, the unfunded landfill closure and post closure costs and the Employee Future Benefits are the only items in the Surplus/(Deficit) section and these are allowed under the Municipal Act as these amounts only needs to be funded as the expected costs are incurred.  If there was an operating surplus or deficit, the amounts would be shown here but the Township does not have one. 

The section for invested in capital assets reflects the equity in capital assets less any unfunded capital amounts.  This is shown in this manner so the effects of capital assets do not get combined with the operating results, which would distort the operating position that could create a positive or negative impact on future tax rates.  The section for reserves and reserve funds are the equity the Township has set aside to fund future capital or operational needs.

The following schedule removes the effects of the PSAB reporting requirements and reflects the operating surplus which is used for setting the tax rates:

 Financial Statement Item 2017
   
Annual PSAB Surplus (Deficit) per page 2 698,130
   
Adjustments for Capital Assests from page 3  
   
Amortization of Capital Assets 1,084,679
Acquisition of Capital Assets (400,824)
Loss/(gain) on disposal of Capital Assets 13,305
Proceeds from sale of Capital Assets 26,913
 
 
Surplus after removing effects of Capital Assets 1,422,203
   
Adjustment for increase (decrease) costs for landfill closure from page 4 (28,000)
   
Adjustment for increase (decrease) costs for employee future benefits liability 5,200
 
 
Surplus after removing effect of Capital Assets and landfill liability 1,399,403
   
Costs to fund unfunded capital/capital deficit from page 11 0
   
Change in reserve and reserve funds from page 11 1,399,403
 
 
Change in operating surplus -
   
Opening operating surplus -
 
Closing operating surplus -
 

 

2017 Building Department Financial Statement

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