HomeMy WebLinkAbout2011-12-31 Year End Audited Financial SatementsConsolidated Financial Statements of
COUNTY OF NEWELL
Year ended December 31, 2011
MANAGEMENT REPORT
The accompanying financial statements and other information contained in this Financial Report are
the responsibility of the management of the County of Newell.
These financial statements have been prepared from information provided by management. Financial
statements are not precise since they include certain amounts based on estimates and judgments.
Management has determined such amounts on a reasonable basis in order to ensure that the
financial statements are presented fairly, in all material respects.
The County maintains systems of internal accounting and administrative controls that are designed to
provide reasonable assurance that the financial information is relevant, reliable and accurate and that
the County's assets are properly accounted for and adequately safeguarded.
The elected Council of the County of Newell is responsible for ensuring that management fulfils its
responsibilities for financial statements.
The Council meets annually with management and the external auditors to discuss internal controls
over the financial reporting process, auditing matters and financial reporting issues, and to satisfy
itself that each party is properly discharging its responsibilities. Council also considers the
engagement of reappointment of the external auditors. Council reviews the monthly financial reports.
The financial statements have been audited by KPMG LLP, the external auditors, in accordance with
Canadian generally accepted auditing standards on behalf of the Council, residents and ratepayers of
the County. KPMG LLP has full and free access to Council.
County Manager
April 19, 2012
KPMG LLP Telephone (403) 380-5700
Chartered Accourrtarrts Fax (403) 380-5760
WO Lethbridge Centre Tower Internet www kpmg.ca
400 - 4th Avenue South
Lethbridge AB T1J 4E1
Canada
Independent Auditors' Report
To the Reeve and Councilors of the County of Newell
We have audited the accompanying consolidated financial statements of the County of Newell
("the Entity"), which comprise the consolidated statement of financial position as at December 31,
2011, and the consolidated statements of operations, net financial assets and cash flows for the
year then ended, and notes, comprising a summary of significant accounting policies and other
explanatory information.
Management's Responsibility for the Consolidated financial statements
Management is responsible for the preparation and fair presentation of these 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on
our audit. We conducted our audit in accordance with Canadian generally accepted auditing
standards. Those standards require that we comply with ethical requirements and plan and
perform an audit to obtain reasonable assurance about whether the consolidated financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the consolidated financial statements. The procedures selected depend on our
judgment, including the assessment of the risks of material misstatement of the consolidated
financial statements, whether due to fraud or error. In making those risk assessments, we
consider internal control relevant to the entity's preparation and fair presentation of the
consolidated financial statements 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
entity's internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the
financial position of the County of Newell as at December 31, 2011, and the results of its
operations and its cash flows for the year then ended in accordance with Canadian public sector
accounting standards..
14*0
April 19, 2012
Lethbridge, Canada
KPMG LLP is a Canadian I mit,d sab lily partnec,hip and a member firm of the KPMG
network of independent member fans affiliated with KPMG International Cooperative
I "'KPMG International "1. a Swiss, ent ty
KPMG Canada provides sere ca,s to KPMG LLP
COUNTY OF NEWELL
Consolidated Statement of Financial Position
December 31, 2011, with comparative figures for 2010
2011 2010
Financial liabilities:
Accounts payable and accrued liabilities
6,918,716
(Restated
Financial assets:
233,205
- note 2)
Cash and temporary investments (note 3)
$ 26,438,521
$ 39,231,724
Taxes and grants in place of taxes receivable (note 4)
860,635
769,911
Trade and other receivables
7,805,038
5,707,956
Land held for resale
35,139
31,881
Investments (note 5)
27,660,432
16,394,197
Notes receivable (note 6)
6,791,226
7,618,660
Other financial liabilities
69,590,990
69,754,329
Financial liabilities:
Accounts payable and accrued liabilities
6,918,716
5,383,973
Employee benefit obligations (note 8)
233,205
242,902
Unearned revenue
2,552,468
3,945,730
Long-term debt - operating (note 9)
5,095,521
5,679,764
Long-term debt - capital (note 10)
349,691
425,150
Provision for landfill closure and post -closure costs (note 11)
339,507
339,507
Provision for gravel pit closure and post -closure costs (note 11)
293,701
293,701
Deposit liabilities (note 3)
149,067
166,237
Other financial liabilities
99,885
62,432
16,031,761
16,539,395
Net financial assets
Non-financial assets:
53,559,230 53,214,934
Prepaid expenses 156,570 143,785
Tangible Capital Assets (note 7) 122,813,081 98,447,085
Inventory for consumption 953,362 986,785
Contingent liabilities (note 19) 123,923,013 99,577,655
Hccumuiatea surplus (note 12) $177,482,242 $152,792,589
The accompanying notes are an integral part of these consolidated financial statements.
COUNTY OF NEWELL
Consolidated Statement of Financial Activities
Year ended December 31, 2011, with comparative figures for 2010
Budget 2011 2010
(Unaudited) (Restated
-note 2)
Revenues:
Net municipal property taxes (note 13)
$ 25,352,870
$ 25,337,414
$ 25,357,073
Special levies
783,825
685,797
784,728
User fees and sale of goods
611,980
828,787
798,453
Government transfers (note 14)
974,890
1,198,557
1,601,670
Penalties and cost of taxes
100,500
167,589
138,669
Investment income
713,185
1,371,013
1,180,134
Licenses and permits
81,000
70,292
30,700
Other revenue
383,730
271,655
114,928
Gain (loss) on disposal of tangible
capital assets
3,441,900
130,537
91,464
32,443,880
30,061,642
30,097,819
Expenses (note 15):
Legislative
459,500
456,142
438,302
Administration
2,909,895
2,303,142
2,046,183
General
803,438
827,195
854,291
Corporate safety services
269,600
236,523
238,257
Fire and by-law enforcement
978,328
881,245
1,032,879
Disaster and emergency services
169,900
133,965
180,571
Roads, streets, walks and lighting
12,106,050
12,581,127
8,628,420
Airport
39,000
112,297
90,641
Water and waste water
3,301,287
2,906,261
6,612,354
Waste management
315,000
255,619
249,413
Family and community support
43,000
41,668
43,949
Municipal planning
396,700
260,789
224,308
Community and agricultural services
1,488,145
1,048,306
1,140,078
Subdivision land and development
209,040
174,056
171,491
Recreation and parks
733,214
731,661
733,752
Culture and library
142,650
139,473
138,125
Other
-
37,454
76,245
24,364,747
23,126,925
22,899,259
Excess of revenues over
expenses before the undemoted 8,079,133 6,934,717 7,198,560
Other.
Contributed assets
Government transfers (note 14
Excess of revenues over expenses
- 106,193 1,667,917
17,190, 807 17, 648, 743 13, 323, 847
,940 24,689,653 22,190,324
Accumulated surplus, beginning of year
152,792,589
152,792,589
130,602,265
Accumulated surplus, end of year
$178,204,849
$177,482,242
$152,792,589
The accompanying notes are an integral part of these consolidated financial statements.
0
COUNTY OF NEWELL
Consolidated Statement of Change in Net Financial Assets
December 31, 2011, with comparative figures for 2010
Budget 2011 2010
(Unaudited)
(Restated
-note 2)
Excess of revenues over expenses
$25,269,940
$ 24,689,653
$ 22,190,324
Acquisition of tangible capital assets
(45,222,526)
(28,471,766)
(27,515,552)
Contributed tangible capital assets
(106,193)
(1,667,917)
Proceeds on disposal of tangible capital assets
-
804,072
1,067,497
Amortization of tangible capital assets
4,954,800
3,538,428
3,329,325
Gain (loss) on disposal of tangible capital assets
3,441,900
(130,537)
(91,464)
(11,555,886)
323,657
(2,687,787)
Use (acquisition) of inventories of supplies
Use (acquisition) of prepaid expenses
unange in net tinanciai assets (11,555,886)
Net financial assets, beginning of year 53,214,934
33,423 (41,563)
(12,785) 6,679
344,296
53,214,934
(2,722,671)
55,937,605
Net financial assets, end of year $41,659,048 $ 53,559,230 $ 53,214,934
The accompanying notes are an integral part of these consolidated financial statements.
COUNTY OF NEWELL
Consolidated Statement of Cash Flows
Year ended December 31, 2011, with comparative figures for 2010
Zu I 1 c.v IV
(Restated
-note 2)
Cash provided by (used in):
Operations:
Excess of revenues over expenses
$ 24,689,653
$ 22,190,324
Items not involving cash:
3,538,428
3,329,325
Amortization
Contributed assets
(106,193)
(1,667,917)
Gain on disposal of tangible capital assets
(130,537)
(91,464)
Change in non-cash financial assets and liabilities:
Taxes and grants in place of taxes receivable
(90,724)
(206,080)
Trade and other receivables
(2,097,082)
4,359,889
Land held for resale
(3,258)
-
13,815
Other financial assets
(12,785)
6,679
Prepaid expenses
Inventory for consumption
33,423
(41,563)
Accounts payable and accrued liabilities
1,534,743
(1,526,679)
Employee benefit obligations
(9,697)
(1,393,262)
(17,195)
3,899,682
Unearned revenue
Provision for landfill and gravel pit closure and
post -closure costs
-
37,454
(342)
62,431
Other financial liability
25,990,164
30,310,905
Capital activities:
Proceeds on disposal of tangible capital assets 804,072 1,067,497
Cash used to acquire tangible capital assets (28,471,766) (27,515,552)
(27,667,694) (26,448,055)
Investing activities:
Increase in investments (11,266,235) (12,334,346)
Notes receivable issued (1,350,000)
Payments received on notes receivable 827,433 757,217
(10,438,802) (12,927,129)
Financing activities:
Repayment of long-term debt:
- operating (584,243) (553,786)
(75,459) (79,271)
- capital
Decrease in deposit liabilities (17,171) (14,009)
(676,872) (647,066)
Decrease in cash (12,793,203) (9,711,345)
Cash and cash equivalents, beginning of year 39,231,724 48,943,069
Cash and cash equivalents, end of year $ 26,438,521 $ 39,231,724
The accompanying notes are an integral part of these consolidated financial statements.
4
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2011
1. Significant accounting policies:
The consolidated financial statements of the County of Newell (the "County") are the
representations of management prepared in accordance with public sector accounting standards
established ' by the Public Sector Accounting Board of the Canadian Institute of Chartered
Accountants. Significant aspects of the accounting policies adopted by the County are as follows:
(a) Reporting entity:
The consolidated financial statements reflect the assets, liabilities, revenues and expenses,
changes in net financial assets and cash flows of the County, which comprises of all the
organizations that are owned or controlled by the County and are, therefore accountable to
the Council for the administration of their financial affairs and resources.
All significant inter -department transactions and balances are eliminated on consolidation.
Taxes levied also include requisitions for educational, health care, social and other external
organizations that are not part of the County.
The statements exclude trust assets that are administered for the benefit of external parties.
(b) Basis of accounting:
The financial statements are prepared using the accrual basis of accounting. The accrual
basis of accounting records revenue as it is earned and measurable. Expenses are
recognized as they are incurred and measurable based upon receipt of goods or services
and/or the legal obligation to pay.
Funds from external parties and earnings thereon restricted by agreement or legislation are
accounted for as deferred revenue until used for the purpose specified.
(c) Investments:
Investments are recorded at cost. Where there has been a loss in value of an investment
other than a temporary decline, the investment is written down to reflect the loss.
(d) Requisition over -levy and under -levy:
Over -levies and under -levies arise from the difference between the actual property tax levy
made to cover each requisition and the actual amount requisitioned.
If the actual levy exceeds the requisition, the over -levy is accrued as a liability and property
tax revenue is reduced. Where the actual levy is less than the requisition amount, the under -
levy is accrued as a receivable and as property tax revenue.
Requisition tax rates in the subsequent year are adjusted for any over -levies for the prior year
P
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2011
1. Significant accounting policies (continued):
(e) Inventories:
Land held for resale is recorded at the lower of cost and net realizable value. Cost includes
costs for land acquisition and improvements required to prepare the land for servicing such as
clearing, stripping, and leveling charges Related development costs incurred to provide
infrastructure such as water and waste water services, roads, sidewalks and street lighting
are recorded as capital assets under their respective function.
(f) Landfill and gravel pit closure and post -closure costs:
Pursuant to the Alberta Environment Protection and Enhancement Act, the County is required
to fund the closure of its landfill site and gravel pits and provide for post -closure care. Closure
and post -closure activities include the final clay cover, landscaping, as well as surface and
ground water monitoring, leachate control and visual inspection. The requirement is being
provided for over the estimated remaining life of the landfill site and gravel pit based on
usage.
(g) Government transfers:
Government transfers are recognized in the financial statements as revenues in the period
that the events giving rise to the transfer occurred, providing the transfers are authorized, all
eligibility criteria have been met by the County, and reasonable estimates of the amounts can
be made.
(h) Non-financial assets:
Non-financial assets are not available to discharge existing liabilities and are held for use in
the provision of services. They have useful lives extending beyond the current year and are
not intended for sale in the normal course of operations.
(i) Tangible capital assets:
Tangible capital assets are recorded at cost which includes all amounts that are directly
attributable to acquisition, construction, development or betterment of the asset. The cost,
less residual value, of the tangible capital assets is amortized on a straight-line basis over
the estimated useful life as follows:
Assets under construction are not amortized until the asset is available for productive use.
2
Years
Land Improvements
15-45
Buildings
25-70
Engineered structures
15-75
Machinery and equipment
5-40
Vehicles
5-14
Assets under construction are not amortized until the asset is available for productive use.
2
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2011
I. Significant accounting policies (continued):
(h) Non-financial assets (continued):
(ii) Contributions of tangible capital assets:
Tangible capital assets received as contributions are recorded at fair value at the date of
receipt and recorded as revenue.
(iii) Inventories
Inventories of materials and supplies held for consumption are recorded at the lower of
cost and replacement cost with cost determined by the average cost method.
(iv) Cultural and historical tangible capital assets:
Works of art for display are not recorded as tangible capital assets but are disclosed.
(i) Use of estimates:
The preparation of the financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates
of the financial statements and the reported amounts of revenues and expenses during the
reporting periods.
Contributions of tangible capital assets are recorded at estimated fair value at the date of
receipt.
Actual results could differ from those estimates.
M
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2011
2. Change in accounting policies and correction of error:
a) The County has implemented Public Sector Accounting Board ("PSAB") section PS3510 Tax
Revenue. PS3510 establishes general reporting principles and standards for the disclosure of tax
revenue in government financial statements. This change has been applied retrospectively and
prior periods have been restated.
b) Subsequent to the release of the 2010 financial statements it was determined that grants
recorded as revenue in 2010 and prior should have been classified as deferred grant revenue as
they related to capital projects which had not been completed.
This change in accounting policy and the correction of error has changed amounts reported in the
prior period as follows:
Accumulated surplus at January 1, 2010, as previously reported $ 129,687,586
Change in policy 1,025,799
Increase in local improvement tax receivable 130,713,385
Correction of error (111,120)
Decrease in grant transfers
Accumulated surplus January 1, 2010, as restated $ 130,602,265
2010 annual surplus: 26,085,991
Excess of revenues over expenses, as previously reported $
Change in policy _
Increase in local improvement tax receivable 26,085,991
Corrections of error
Decrease in gove
transfers
3. Cash and temporary investments:
Cash
Temporary investments (effective average yield 1.33%)
rs-Iam
$ 16,923,576 $ 19,143,611
9,514,945 20,088,113
$26,43S,5L1 ;0 35,40 1, r c -r
Included in cash are amounts aggregating $149,067 (2010 - $166,237) not available for current
use as follows:
2011 2010
T $ 12,114 $ 13,209
Tax sale surplus
Public reserve 136,953 153,028
$ 149,067 $ 166,237
0
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2011
4. Taxes and grants in place of taxes receivable:
2011
2010
Current year
$ 427,744
$ 389,320
Arrears
452,891
532,931
Allowance for uncollectible taxes
880,635
(20,000)
922,251
(152,340)
$ 860,635
$ 769,911
S. Investments:
2011
2010
Fixed income securities
$ 27,586,947
$ 16,320,717
Credit Union Common shares
5
Newell Regional Services Corporation:
Common shares
20
20
Preferred shares
73,460
73,460
73,480
$ 27,660,432
$ 16,394,197
Long-term investments consist of fixed income securities
with an effective average yield of 3.35%
and an aggregate market value of $27,586,947 (2010 - $16,320,717).
0
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2011
6. Notes receivable:
Newell Foundation, repayable in annual installments of
$896,630 including interest at 5.5%, maturing in 2018.
Tilley and District Fire Association, repayable in annual
installments of $96,327 including interest at 3.497%,
maturing in 2020.
Newell Regional Services Corporation, non-interest bearing„
maturing in 2017.
Division 5 & 10, repayable in annual installments of
$131,082 including interest at 5.25%, maturing in 2013.
Bow Slope Fire Division, repayable in annual installments of
$32,113 including interest at 4.39%, maturing in 2013.
Rolling Hills Fire Division, repayable in annual installments of
$39,585 including interest at 3.954%, maturing in 2014.
10
2011 2010
$ 5,095,521 $ 5,679,764
731,649 800,000
550,000 550,000
242,873 355,302
60,231 88,461
110,952 145,133
$ 6,791,226 $ 7,618,660
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2011
7. Tangible capital assets:
Cost
2010
Additions
Disposals
2011
Land $
5,292,005
$ 36,650
$ (2,335)
$ 5,326,320
Land improvements
997,981
--
--
997,981
Buildings
1,119,418
—
—
1,119,418
Engineering structures
93,769,844
4,180,722
(39,300)
97,911,266
Machinery and equipment
8,118,702
2,003,198
(1,157,217)
8,964,683
Vehicles
3,312,481
82,233
—
3,394,714
Work in progress
25,710,242
22,275,157
—
47,985,399
Total $138,320,673 $28,577,960 $ (1,198,852) 165,699,781
Accumulated
Amortization
amortization
2010
Disposals
expense
2011
Land improvements $
173,657
$ —
$ 91,531
$ 265,188
Buildings
397,949
—
22,872
420,821
Engineering structures
35,045,980
(39,300)
2,475,405
37,482,084
Machinery and equipment
2,765,866
(486,017)
680,935
2,960,784
Vehicles
1,490,136
--
267,685
1,757,821
Total $
39,873,588
$ (525,317)
$ 3,538,428
$ 42,886,698
Net book value
2011
2010
Land
$ 5,326,320
$ 5,292,005
Land improvements
732,794
824,324
Buildings
698,597
721,469
Engineering structures
60,429,181
58,723,864
Machinery and equipment
6,003,898
5,352,836
Vehicles
1,636,892
1,822,345
Work in progress
47,741,982
25,710,242
Total $122,813,081 $ 98,447,085
Contributed assets are recognized at fair market value at the date of contribution. The value of
contributed assets, comprised of land and engineered structures, received during the year is
$106,193 (2010 - $1,667,917).
11
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2011
8. Employee benefit obligation:
Vacation
The vacation liability is comprised of the vacation that employees are deferring to future years.
Employees have either earned the benefits (and are vested) or are entitled to these benefits within
the next budgetary year.
9. Long-term debt — operating:
2011 2010
Debenture supported with notes receivable $ 5,095,521 $ 5,679,764
Principal and interest repayments are due as follows:
Debenture debt is repayable to Alberta Capital Finance Authority and bears interest at 5.5% per
annum, before Provincial subsidy, and matures in 2018. Debenture debt is issued on the credit
and security of the County of Newell at large.
Interest on long-term debt operating amounted to $304,567 (2010 — $335,251).
The County's total cash payments for interest in 2011 were $312,387 (2010 - $342,845).
12
Principal
Interest
i otai
2012
$ 616,376
$ 280,254
$ 896,630
2013
650,277
246,353
896,630
2014
686,043
210,587
896,630
2015
723,775
172,855
896,630
2016
763,583
133,047
896,630
Thereafter
1,655,466
137,794
1,793,260
$ 5,095,521
$ 1,180,889
$ 6,276,410
Debenture debt is repayable to Alberta Capital Finance Authority and bears interest at 5.5% per
annum, before Provincial subsidy, and matures in 2018. Debenture debt is issued on the credit
and security of the County of Newell at large.
Interest on long-term debt operating amounted to $304,567 (2010 — $335,251).
The County's total cash payments for interest in 2011 were $312,387 (2010 - $342,845).
12
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2011
10. Long-term debt —capital:
2011
2010
Tax supported debentures
$ 349,691
$ 425,150
Principal and interest repayments are due as follows:
Principal
Interest
Total
2012
$ 78,861
$ 15,176
$ 94,037
2013
82,418
11,619
94,037
2014
86,139
7,898
94,037
2015
90,032
4,005
94,037
2016
12,240
1,326
13,566
Thereafter
-
$ 349,691
$ 40,024
$ 389,715
Debenture debt is repayable to Alberta Capital Finance Authority and bears interest at rates
ranging from 4.307% to 7.125% per annum, before Provincial subsidy, and matures in periods
2015 through 2017. The average annual interest rate is 4.57% for 2011 (2010 — 7.7%). For
qualifying debentures, the Province of Alberta rebates 60% of interest in excess of 8%, 9% and
11 % to a maximum annual rate of 12.5%, depending on the date borrowed. Debenture debt is
issued on the credit and security of the County of Newell at large.
Interest on long-term debt capital amounted to $21,346 (2010 - $22,659)
The County's total cash payments for interest in 2011 were $18,577 (2010 - $22,659).
11. Provision for landfill and gravel pit closure and post -closure costs:
Alberta environmental law requires closure and post -closure care of landfill sites, which includes
final covering and landscaping, pumping of ground water and leachates from the site, and on-
going environmental monitoring, site inspections and maintenance.
The accrued liability for the remaining post -closure costs of the County's landfill and closure and
post -closure costs for the County's gravel pit is based on an estimate of future discounted costs.
The estimated closure and post -closure costs for the landfill are $339,507 and $293,701 for the
gravel pits, all of which have been accrued in the financial statements.
The County has not designated assets for settling closure and post -closure liabilities
13
COUNTY OF
NEWELL
Accumulated depreciation
Long-term debt (note 9) (349,691)
Notes to Consolidated Financial Statements
$ 122,463,390
Year ended December 31, 2011
12. Accumulated surplus:
Equity in
Unrestricted
tangible
capital
Total Total
net assets
assets (i)
Reserves (2) 2011 2010
Beginning
balance
$ --
$98,021,935
$54,770,654 $152,792,589 $130,602,265
Excess of revenues
over expenses
24,689,653
24,689,653 22,190,324
Transfer to
reserves
(23,015,865)
23,015,865 --
Transfers from
reserves
27,084,871
(27,084,871)
Amortization of
tangible capital
assets
3,538,428
(3,538,428)
Net book value
of assets disposed 673,535
(673,535)
-"
Capital assets
internally
funded
(28,471,766)
28,471,766
Contributed capital
assets
(106,193)
106,193
Principal payment
on capital debt
(75,459)
75,459
Total
$ 4,317,204
$122,463,390
$50,701,648 $177,482,242 $152,792,589
(i) Equity in tangible capital assets:
2011 2010
Tangible capital assets $ 165,699,779
(42,886,698)
$138,320,673
(39,873,588)
Accumulated depreciation
Long-term debt (note 9) (349,691)
(425,150)
$ 122,463,390
$ 98,021,935
14
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2011
12. Accumulated surplus (continued):
(2) Reserves are comprised of funds internally restricted as follows::
2011
2010
Annual Paving Tax
$ 13,117,298
$ 16,451,337
Municipal Surplus
9,706,571
13,427,442
Administration
13,042,616
12,410,503
Regional Enhancement
6,370,691
6,856,512
Secondary highway #847
700,145
690,893
Secondary highway #862
--
209,040
Agriculture Service Board
740,636
635,041
Planning
141,668
139,796
Fire Truck
63,165
29,122
Disaster Services
71,023
61,204
Special Constable
64,928
64,070
Shop
70,212
33,858
Public Works
5,912,339
3,266,803
Public Transportation
136,919
120,884
Economic Development
118,025
119,038
Rolling Hills water and sewer
80,817
80,817
Scandia water reservoir
69,185
69,185
Patricia sewer
73,484
73,484
Lake Newell sewer
31,626
31,626
Corporate Safety
4,300
-
Water
56,000
-
Sewer
108,000
-
Parks
22,000
-
$ 50,701,648
$ 54,770,654
15
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2011
13. Net municipal property taxes:
Budget 2011 2010
(Unaudited)
Taxation:
Real property taxes
$25228,094 385
$ 12,602,000 24,927,486
12,393,753
$ 25,228,093
Linear property taxes
607,014
12,557,174
630,439
12,461,234
12,549,537
Government grants in place of property
286,565
269,162
284,764
taxes
37,910,044
37,798,648
37,906,610
Requisitions:
Alberta School Foundation Fund
11,950,160
11,830,795
11,942,524
607,013
Newell Foundation
607,014
12,557,174
630,439
12,461,234
12,549,537
Net municipal property taxes
$ 25,352,870
$ 25,337,414
$ 25,357,073
14. Government transfers:
Budget 2011 2010
(Unaudited) (Restated -
note 2)
Transfers for operating:
Provincial government
$ 833,340
$ 1,035,371
$ 1,354,157
Federal government
137,050
137,050
30,969
132,217
5,126
242,387
Local government
974,890
1,198,557
1,601,670
Transfers for capital:
Provincial government
16, 525,807
17,076,929
11,315,879
Local government
571,814
2,007,968
17,190,807
17,190,807
17,648,743
13,323,847
$ 18,165,697 $18,847,300 $ 14,925,517
16
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2011
15. Expenditures by object:
Budget
2011
2010
(Unaudited)
Salaries, wages and benefits
$ 6,616,165
$ 6,063,168
$ 5,731,502
Contracted and general services
4,675,013
6,532,596
3,354,805
Materials, goods, supplies and utilities
3,224,569
2,401,879
1,935,961
Transfers to organizations
4,468,740
4,039,138
8,150,298
Bank charges and short-term interest
600
508
497
Interest on long-term debt
335,660
325,913
357,911
Other expenditures
89,200
225,295
38,960
Amortization
4,954,800
3,538,428
3,329,325
$ 24,364,747
$ 23,126,925
$ 22,899,259
17
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2011
16. Salary and benefits disclosure:
Disclosure of salaries and benefits
for elected municipal officials and the chief
administrative
officer as required by provincial regulation is as
follows:
2011
2010
Benefits &
Salary (1)
Allowances (2)
Total
Total
Council:
Reeve $
6,000
$ -
$ 6,000
$ 6,000
Division 1
27,695
5,497
608
33,192
34,291
31,267
29,357
Division 2
Division 3
33,683
34,828
5,741
40,569
39,241
Division 4
21,856
1,080
1,104
22,936
35,552
23,091
27,563
Division 5
Division 6
22,448
25,888
4,700
30,588
27,894
Division 7
28,577
5,485
1,466
34,062
32,803
28,967
28,118
Division 8
Division 9
31,337
37,295
2,010
39,305
36,608
Division 10
29,238
5,513
34,751
31,627
$
298,845
$ 33,204
$ 344,049
$ 309,733
Chief Administrative Officer $
188,200
$ 38,111
$ 226,311
$ 197,004
1) Salary includes regular base pay, bonuses, overtime, lump sum payments, gross honoraria
and any other direct cash remuneration.
2) Benefits and allowances include the employer's share of all employee benefits and
contributions or payments made on behalf of employees including pension, health care,
dental coverage, vision coverage, group life insurance, accidental disability and
dismemberment insurance, long and short-term disability plans, professional memberships
and tuition.
Benefits and allowances figures also include the employer's share of the costs of additional
taxable benefits including special leave with pay, financial planning services, retirement
planning services, concessionary loans, travel allowances, car allowances, and club
memberships, if applicable.
18
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2011
17. Debt limits:
Section 276(2) of the Municipal Government Act requires that debt and debt limits as defined by
Alberta Regulation 255/00 for the County be disclosed as follows:
2011
2010
Total debt limit $ 45,092,463
Total debt (5,445,212)
$ 45,193,529
(6,104,914)
$ 39,647,251
$ 39,088,615
2011
2010
Debt servicing limit $ 7,515,411
Debt servicing (990,667)
$ 7,532,255
(990,667)
$ 6,524,744
$ 6,541,588
The debt limit is calculated at 1.5 times revenue of the County (as defined in Alberta Regulation
255/00) and the debt service limit is calculated at 0.25 times such revenue. Incurring debt beyond
these limitations requires approval by the Minister of Municipal Affairs. These thresholds are
guidelines used by Alberta Municipal Affairs to identify municipalities which could be at financial
risk if further debt is acquired. The calculation taken alone does not represent the financial
stability of the County. Rather, the financial statements must be interpreted as a whole.
18. Local authorities pension plan:
The County participates in a multi-employer defined benefit pension plan. This plan is accounted
for as a defined contribution plan.
Employees of the County participate in the Local Authorities Pension Plan (LAPP), which is one of
the plans covered by the Public Sector Pension Plans Act. The LAPP serves about 189,149
people and about 411 employers. The LAPP is financed by employer and employee contributions
and investment earnings of the LAPP fund.
Contributions for current service are recorded as expenditures in the year in which they become
due. The County is required to make current service contributions to the Plan of 9.49% of
pensionable earnings up to the year's maximum pensionable earnings under the Canada Pension
Plan and 13.13% on pensionable earnings above this amount. Employees of the County are
required to make current service contributions of 8.49% of pensionable salary up to the year's
maximum pensionable salary and 12.13% on pensionable salary above this amount.
Total current service contributions by the County to the LAPP in 2011 were $359,721 (2010 -
$344,496). Total current service contributions by the employees of the County to the LAPP in
2011 were $325,775 (2010 - $310,361).
At December 31, 2010, the LAPP disclosed an actuarial deficiency of $4,635 million
19
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2011
19. Contingent liabilities:
The County of Newell is a member of the Alberta Municipal Insurance Exchange (MUNIX). Under
the terms of membership, the County of Newell could become liable for its proportionate share of
any claim losses in excess of the funds held by the exchange. Any liability incurred would be
accounted for as a current transaction in the year the losses are determined.
The County has been named defendant in legal actions. In the opinion of management this
matter is without substantial merit and no provision has been made in the accounts,
20. Recent accounting pronouncements:
The Public Sector Accounting Board recently announced the following accounting
pronouncements:
(a) Liability for contaminated sites:
This accounting pronouncement establishes standards on how to account for and report a
liability associated with the remediation of contaminated sites. It is effective for fiscal years
beginning on or after April 1, 2014, with early adoption encouraged.
(b) Government transfers:
This accounting pronouncement establishes standards on how to account for and report
government transfers to individuals, organizations, and other governments from both a
transferring government and a recipient government perspective. It is effective for fiscal years
beginning on or after April 1, 2012, with early adoption encouraged.
(c) Financial instruments:
This accounting pronouncement establishes standards on how to account for and report all
types of financial instruments including derivatives. Financial instruments include primary
instruments and derivative instruments. It is effective for fiscal years beginning on or after
April 1, 2015 for governments and for fiscal years beginning on or after April 1, 2012 for
government organizations, with early adoption encouraged.
(d) Foreign currency translation:
This accounting pronouncement establishes standards on how to account for and report
transactions that are denominated in a foreign currency in government financial statements. It
is effective for fiscal years beginning on or after April 1, 2015 for governments and for fiscal
years beginning on or after April 1, 2012 for government organizations, with early adoption
encouraged.
Management is assessing the impact of the adoption of these standards which is not known or
reasonably estimable at this time.
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2011
21. Financial instruments:
It is management's opinion that the County is not exposed to significant interest, currency or credit
risk arising from these financial instruments. Unless otherwise noted, the fair values of these
financial instruments approximate their carrying values.
22. Budget data:
The unaudited budget data presented in these consolidated financial statements is based upon
the 2011 operating and capital budgets approved by Council on December 10, 2010 and any
subsequent budget adjustments.
23. Approval of financial statements:
These financial statements were approved by Council and Management.
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