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2018 Financial Statements

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2018 Financial Statements Consolidated Financial Statements of CORPORATION OF THE TOWNSHIP OF CENTRAL FRONTENAC Year ended December 31, 2018 Consolidated Financial Statements of CORPORATION OF THE TOWNSHIP OF CENTRAL FRONTENAC Year ended December 31, 2018 CORPORATION OF THE TOWNSHIP OF CENTRAL FRONTENAC Page Management's Responsibility for the Consolidated Financial Statements 1 Independent Auditors' Report 2 Consolidated Statement of Financial Position 4 Consolidated Statement of Operations and Accumulated Surplus 5 Consolidated Statement of Change in Net Financial Assets 6 Consolidated Statement of Cash Flows 7 Notes to the Consolidated Financial Statements 8 Schedule of Segment Disclosure 24 CORPORATION OF THE TOWNSHIP OF CENTRAL FRONTENAC TRUST FUNDS Independent Auditors' Report 25 Statements of Financial Position 27 Statements of Continuity 28 Notes to Financial Statements 29 1 INDEPENDENT AUDITOR'S REPORT To: The Members of Council, Inhabitants and Ratepayers of: Corporation of The Township of Central Frontenac Opinion We have audited the accompanying consolidated financial statements of Corporation of The Township of Central Frontenac which comprise the consolidated statement of financial position as at December 31, 2018 and the consolidated statements of operations and accumulated surplus, change in net financial assets and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Corporation of The Township of Central Frontenac as at December 31, 2018 and the results of its operations and cash flows for the year then ended in accordance with Canadian public sector accounting standards. Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Corporation of The Township of Central Frontenac in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other Matter The consolidated financial statements of the Corporation of The Township of Central Frontenac for the year ended December 31, 2017 were audited by other accountants. The previous accountants expressed an unmodified opinion on those statements on April 24, 2018. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Canadian public sector accounting standards and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is responsible for assessing the Corporation of The Township of Central Frontenac’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Corporation of The Township of Central Frontenac or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Corporation of The Township of Central Frontenac’s financial reporting process. 2 27 Princess Street - Suite 410, Kingston, ON, K7L 1A3, Telephone: 613-546-3111 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation of The Township of Central Frontenac’s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Corporation of The Township of Central Frontenac to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Kingston, Ontario Chartered Professional Accountants April 23, 2019 Licensed Public Accountants 3 CORPORATION OF THE TOWNSHIP OF CENTRAL FRONTENAC Consolidated Statement of Financial Position December 31, 2018, with comparative information for 2017 2018 2017 Finanical assets: Cash $ 5,825,398 $ 3,747,687 Investments (note 2) 564,685 552,373 Taxes receivable 1,052,146 1,130,875 Accounts receivable 773,331 783,757 8,215,560 6,214,692 Liabilities: Accounts payable and accrued liabilities 2,059,151 1,842,598 Deferred revenue 500,581 175,208 Deferred revenue - Obligatory Reserve Fund (note 9) (9,479) (18,372) Long-term liabilities (note 3) 2,162,569 966,861 Landfill closure and post-closure liability (note 11) 845,067 786,065 Employee post-employment benefits (note 6) 215,228 214,960 5,773,117 3,967,320 Net financial assets 2,442,443 2,247,372 Non-financial assets: Tangible capital assets (note 14) 34,957,098 34,353,098 Other assets 80,445 52,642 35,037,543 34,405,740 Contingent liabilities (note 13) Accumulated municipal surplus (note 15) $ 37,479,986 $ 36,653,112 Approved by the Corporation of the Township of Central Frontenac Council Member Council Member The accompanying notes are an integral part of these financial statements. 4 CORPORATION OF THE TOWNSHIP OF CENTRAL FRONTENAC Consolidated Statement of Operations and Accumulated Surplus For the Year Ended December 31, 2018, with comparative information for 2017 Budget Actual Actual 2018 2018 2017 Revenue: Property taxation $ 7,845,896 $ 7,772,385 $ 7,331,271 Licenses, permits, and rents 160,172 152,162 204,913 User charges 231,975 364,083 379,395 Government grants 4,115,377 2,296,668 2,096,522 Other municipalities 130,634 137,783 130,906 Penalties and interest on taxes 194,000 192,300 201,611 Investment income 40,100 92,090 60,409 Other 85,350 187,196 132,451 Contributed tangible capital assets - - 303,002 Loss on disposal of tangible capital assets - (14,529) (142,714) Total revenue 12,803,504 11,180,138 10,697,766 Expenses: (note 12) General government 1,380,242 1,440,535 1,179,256 Protection to persons and property 2,443,316 2,439,813 2,304,424 Transportation services 5,753,369 5,417,331 5,120,002 Environmental services 419,708 346,550 239,386 Health services 157,021 128,522 154,130 Recreation and cultural services 395,721 525,015 471,002 Planning and development 97,594 55,498 73,799 Total expenses 10,646,971 10,353,264 9,541,999 Annual surplus 2,156,533 826,874 1,155,767
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