HomeMy WebLinkAbout2012-12-31 Year End Audited Financial SatementsConsolidated Financial Statements of
COUNTY OF NEWELL NO. 4
Year ended December 31, 2012
Management's Responsibility for the Consolidated
Financial Statements
The accompanying consolidated financial statements and other information contained in this Financial
Report are the responsibility of the management of the County of Newell No. 4 (the "County ").
These financial statements have been prepared by management using the accounting policies
disclosed in the notes to these financial statements. 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 No. 4 is responsible for ensuring that management fulfils
its responsibilities for financial reporting.
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.
The consolidated financial statements have been audited by KPMG LLP, the external auditors, in
accordance with Canadian generally accepted auditing standards. KPMG LLP has full and free
access to Council.
Coun -Hager
April 11, 2013
KPMG LLP Telephone (403) 380 -5700
Chartered Accountants Fax (403) 380 -5760
500 Lethbridge Centre Tower Internet www.kpmg.ca
400 - 4th Avenue South
Lethbridge AB T1 J 4E1
Canada
Independent Auditors' Report
To the Reeve and Members of Council of the County of Newell No. 4
We have audited the accompanying consolidated financial statements of County of Newell No. 4 (the
"County ") which comprise the consolidated statement of financial position as at December 31, 2012,
and the consolidated statements of financial activities, changes in 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.
Auditors' 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 the 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
consolidated financial position of County of Newell No. 4 as at December 31, 2012, and its results of
consolidated financial activities, its changes in net financial assets and its cash flows for the year then
ended in accordance with Canadian public sector accounting standards.
/1%16 'a
April 11, 2013
Lethbridge, Canada
KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG
network of independent member firms affiliated with KPMG International Cooperative
('KPMG International"), a Swiss entity.
KPMG Canada provides services to KPMG LLP
COUNTY OF NEWELL No. 4
Consolidated Statement of Financial Position
December 31, 2012, with comparative figures for 2011
2012
2011
Financial assets:
Cash and temporary investments (note 2)
Taxes and grants in place of taxes receivable (note 3)
Trade and other receivables
Land held for resale
Investments (note 4)
Notes receivable (note 5)
Financial liabilities:
Accounts payable and accrued liabilities
Employee benefit obligations (note 7)
Unearned revenue (note 8)
Long -term debt - operating (note 9)
Long -term debt - capital (note 10)
Provision for landfill closure and post - closure costs (note 11)
Provision for gravel pit closure and post - closure costs (note 11)
Deposit liabilities (note 2)
Other financial liabilities
$ 24,544,459
890,911
6,258,580
35,139
35,901,728
5,920,763
73,551,580
Net financial assets
Non - financial assets:
Prepaid expenses
Tangible Capital Assets (note 6)
Inventory for consumption
Contingent liabilities (note 19)
7,253,208
321,915
1,055,761
4,479,144
17,115,017
292,215
315,376
158,270
7,371
30,998,277
42, 553, 303
86,082
156,681,903
1,122, 799
157,890,784
$ 26,438,521
860,635
7,805,038
35,139
27,660,432
6,791,226
69,590,991
6,918,716
233,205
2,552,468
5,095,521
349,691
339,507
293,701
149,067
99,885
16,031,761
53,559,230
156,570
122,813,081
953,361
123,923,012
Accumulated surplus (note 12)
$200,444,087 $177,482,242
The accompanying notes are an integral part of these consolidated financial statements.
1
COUNTY OF NEWELL No. 4
Consolidated Statement of Financial Activities
Year ended December 31, 2012, with comparative figures for 2011
Budget
2012
2011
Revenues:
Net municipal property taxes (note 13)
Special levies
User fees and sale of goods
Government transfers (note 14)
Penalties and cost of taxes
Investment income
Licenses and permits
Other revenue
Gain (loss) on disposal of tangible
capital assets
Expenses (note 15):
Legislative
Administration
Corporate safety services
Fire and by -law enforcement
Disaster and emergency services
Roads, streets, walks and lighting
Airport
Water and waste water
Waste management
Family and community support
Municipal planning
Community and agricultural services
Subdivision land and development
Recreation and parks
Culture and library
Other
(Unaudited)
$ 26,752,947
858,431
929,890
1,420,100
125,750
653,254
75,000
1,124,437
3,470,000
35,409,809
453,500
4,357,737
274,612
1,207,323
161,359
14,879,702
113,105
1,023,576
345,000
61,812
341,424
1,416,163
368,460
768,912
140,682
$ 26,174,091
711,465
988,258
1,294,814
164,918
1,736,993
166,302
1,393,890
(123,751)
32,506,980
433,035
4,025,438
251,127
1,060,690
145,619
9,722,194
92,701
1,195,158
259,826
60,812
380,354
1,300,551
265,710
767,826
140,682
25, 913, 367
20,101, 723
$ 25,337,414
685,797
828,787
1,198, 557
167,589
1,371,013
70,292
271,655
130,537
30,061,641
456,142
3,130,338
236,523
881,245
133,965
12, 581,127
112,297
2,906,261
255,619
41,668
260,789
1,048,306
174,056
731,661
139,473
37,454
23,126,924
Excess of revenues over
expenses before the undernoted
Other:
Contributed assets
Government transfers (note 14)
Excess of revenues over expenses
Accumulated surplus, beginning of year
9,496,442
16,869,872
26,366,314
177,482,242
12,405,257
845,882
9,710,706
22,961,845
177,482,242
6,934,717
106,193
17,648,743
24,689,653
152, 792, 589
Accumulated surplus, end of period
$203,848,556 $200,444,087
$ 177,482,242
The accompanying notes are an integral part of these consolidated financial statements.
2
COUNTY OF NEWELL No. 4
Consolidated Statement of Change in Net Financial Assets
December 31, 2012, with comparative figures for 2011
Budget
2012 2011
(Unaudited)
Excess of revenues over expenses $26,366,314 $ 22,961,845 $ 24,689,653
Acquisition of tangible capital assets (61,134,218) (37,391,671) (28,471,766)
Contributed tangible capital assets (845,882) (106,193)
Proceeds on disposal of tangible capital assets - 348,379 804,072
Amortization of tangible capital assets 5,634,802 3,896,602 3,538,428
(Gain) loss on disposal of tangible capital assets (3,470,000) 123,751 (130,537)
(32,603,102) (10,906,976) 323,657
Use (acquisition) of inventories for consumption
Use (acquisition) of prepaid expenses
(169,438) 33,423
70,487 (12,784)
Change in net financial assets
Net financial assets, beginning of year
(25,663,102) (11,005,927) 344,296
53,559,230 53,559,230 53,214,934
Net financial assets, end of period
$20,956,128 $ 42,553,303 $ 53,559,230
The accompanying notes are an integral part of these consolidated financial statements.
3
COUNTY OF NEWELL No. 4
Consolidated Statement of Cash Flows
Year ended December 31, 2012, with comparative figures for 2011
2012 2011
Cash provided by (used in):
Operations:
Excess of revenues over expenses $ 22,961,845 $ 24,689,653
Items not involving cash'
Amortization 3,896,602 3,538,428
Contributed assets (845,882) (106,193)
(Gain) loss on disposal of tangible capital assets 123,751 (130,537)
Change in non -cash financial assets and liabilities:
Taxes and grants in place of taxes receivable (30,276) (90,724)
Trade and other receivables 1,546,458 (2,097,082)
Land held for resale - (3,258)
Prepaid expenses 70,487 (12,785)
Inventory for consumption (169,438) 33,423
Accounts payable and accrued liabilities 334,492 1,534,743
Employee benefit obligations 88,710 (9,697)
Unearned revenue (1,496,707) (1,393,262)
Landfill closure and post - closure costs (47,292)
Gravel pit closure and post - closure costs 21,675
Other financial liability (92,514) 37,454
26,361, 911 25, 990,163
Capital activities:
Proceeds on disposal of tangible capital assets 348,379 804,072
Cash used to acquire tangible capital assets (37,391,671) (28,471,766)
(37,043,292) (27,667,694)
Investing activities:
Increase in investments (8,241,296) (11,266,235)
Payments received on notes receivable 870,463 827,434
(7,370,833) (10,438,801)
Financing activities:
Repayment of long -term debt:
- operating (616,377) (584,243)
- capital (634,674) (75,458)
Proceeds from debt issues 17,400,000 -
Increase (decrease) in deposit liabilities 9,203 (17,170)
16,158,152 (676,871)
Decrease in cash
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of period
(1,894,062) (12,793,203)
26, 438, 521 39,231,724
$ 24,544,459 $ 26,438,521
The accompanying notes are an integral part of these consolidated financial statements.
4
COUNTY OF NEWELL No. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2012
1. Significant accounting policies:
The consolidated financial statements of the County of Newell (the "County ") are the
representations of management prepared in accordance with accounting principles for local
governments as 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) Cash and cash equivalents:
Cash and cash equivalents include cash on hand and short-term deposits which are highly
liquid with original maturities of less than three months from the date of acquisition.
(b) 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.
(c) 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.
(d) 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.
(e) 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
5
COUNTY OF NEWELL No. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2012
1. Significant accounting policies (continued):
(f) 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 and 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.
(g) 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.
(h) 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.
(i) 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:
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.
6
COUNTY OF NEWELL No. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2012
1. Significant accounting policies (continued):
(i)
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.
(j) Pension expenses:
The County participates in a multi - employer defined benefit pension plan, wherein
contributions for current and past service pension benefits are recorded as expenses in the
year in which they become due.
(k) 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 date
of the financial statements and the reported amounts of revenues and expenses during the
reporting period. Significant areas requiring the use of management estimates relate to the
determination of allowance for doubtful accounts, provision for closure and post - closure care,
employee benefit obligations and the useful life of tangible capital assets.
Contributions of tangible capital assets are recorded at estimated fair value at the date of
receipt.
Actual results could differ from those estimates.
7
COUNTY OF NEWELL No. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2012
2. Cash and temporary investments:
2012 2011
Cash
Temporary investments
$ 3,749,538 $ 16,923,576
20,794,921 9,514,945
$ 24,544,459 $ 26,438,521
Included in cash are amounts aggregating $158,270 (2011 - $149,067) not available for current
use. Also included in cash and temporary investments is $6,698,261 of unexpended debt
proceeds.
The temporary investments have an average interest rate of 1.57% (2011 — 1.33 %).
2012 2011
Tax sale surplus
Public reserve
$ 12,254 $ 12,114
146,016 136,953
$ 158,270 $ 149,067
3. Taxes and grants in place of taxes receivable:
2012 2011
Current year $ 411,923 $ 427,744
Arrears 498,988 452,891
910,911 880,635
Allowance for uncollectible taxes (20,000) (20,000)
$ 890,911 $ 860,635
8
COUNTY OF NEWELL No. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2012
4. Investments:
2012 2011
Fixed income securities $ 35,828,243 $ 27,586,947
Credit Union Common shares 5 5
Newell Regional Services Corporation:
Common shares 20 20
Preferred shares 73,460 73,460
73,480 73,480
$ 35,901,728 $ 27,660,432
Long -term investments consist of fixed income securities that yield interest rates from 1.34% to
6.54% and mature in periods 2013 through 2026. The investments have an average expected
yield of 2.73% and an aggregate market value of $36,225,703 (2011 - $27,586,947).
5. Notes receivable:
2012 2011
Newell Foundation, repayable in annual installments of
$896,630 including interest at 5.5 %, maturing in 2018. $ 4,479,144 $ 5,095,521
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.
660,908 731,649
550,000 550,000
124,542 242,873
30,763 60,231
75,406 110,952
$ 5,920,763 $ 6,791,226
COUNTY OF NEWELL No. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2012
6. Tangible capital assets:
Cost
2011 Additions Disposals 2012
Land $ 5,326,320 $ 11,250 $ $ 5,337,570
Land improvements 997,981 115,495 1,113,476
Buildings 1,119,418 94,060 -- 1,213,478
Engineered structures 97,911,265 18,101,395 (422,971) 115,589,689
Machinery and equipment 8,964,683 1,185,342 (619,458) 9,530,567
Vehicles 3,394,713 489,076 (180,000) 3,703,789
Work in progress 47,985,399 18,240,935 66,226,334
Total $ 165,699,779 $38,237,553 $ (1,222,429) 202,714,903
Accumulated Amortization
amortization 2011 Disposals expense
2012
Land improvements $ 265,188 $ $ 93,455 $ 358,643
Buildings 420,821 -- 24,963 445,784
Engineered structures 37,482,084 (292,446) 2,788,744 39,978,382
Machinery and equipment 2,960,784 (314,853) 725,122 3,371,053
Vehicles 1,757,821 (143,001) 264,318 1,879,138
Total $ 42,886,698 $ (750,300) $ 3,896,602 $ 46,033,000
Net book value
2012 2011
Land $ 5,337,570 $ 5,326,320
Land improvements 754,833 732,793
Buildings 767,694 698,597
Engineered structures 75,611,307 60,429,181
Machinery and equipment 6,159,514 6,003,899
Vehicles 1,824,651 1,636,892
Work in progress 66,226,334 47,985,399
Total $156,681,903 $122,813,081
10
COUNTY OF NEWELL No. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2012
7. 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.
8. Unearned Revenue:
Description
Recognized as
2011 Additions revenue
2012
Rural Water Deposits $ 1,670,971 $ 11,700 $(1,020,361) $ 662,310
Street Improvement Grant -- 173,520 -- 173,520
Other 881,497 203,926 (865,492) 219,931
Total $ 2,552,468 $ 389,146 $ (1,885,853) 1,055,761
9. Long -term debt — operating:
2012 2011
Debenture supported with notes receivable $ 4,479,144 $ 5,095,521
Principal and interest repayments are due as follows:
Principal
Interest Total
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
2017 805,580 91,050 896,630
Thereafter 849,886 46,743 896,629
$ 4,479,144 $ 900,635 $ 5,379,779
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 amounted to $341,841 (2011 — $304,567).
The County's total cash payments for interest in 2012 were $280,253 (2011 - $342,845).
11
COUNTY OF NEWELL No. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2012
10. Long -term debt — capital:
2012 2011
Tax supported debentures $ 17,115,017 $ 349,691
Principal and interest repayments are due as follows:
Principal
Interest Total
2013 $ 1,665,739 $ 380,386 $ 2,046,125
2014 1,705,169 340,956 2,046,125
2015 1,745,575 300,550 2,046,125
2016 1,698,792 260,080 1,958,872
2017 1,737,393 221,479 1,958,872
Thereafter 8,562,349 501,598 9,063,947
$ 17,115,017 $ 2,005,049 $ 19,120,066
Debenture debt is repayable to Alberta Capital Finance Authority and bears interest at rates
ranging from 2.177% to 7.125% per annum, before Provincial subsidy, and matures in periods
2015 through 2022. The average annual interest rate is 2.28% for 2012 (2011 — 4.57 %). 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 amounted to $173,917 (2011 - $21,346).
The County's total cash payments for interest in 2012 were $155,855 (2011 - $18,577).
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 $292,215 and $315,376 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.
12
COUNTY OF NEWELL No. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2012
12. Accumulated surplus:
Unrestricted
net assets
Equity in
tangible
capital
assets (1)
Restricted Total
Surplus (2) 2012
Total
2011
Beginning
balance $ 4,317,204
Excess of revenues
over expenses 22,961,845
Transfer to
restricted surplus (15,382,507)
Transfers from
restricted surplus 16,082,804
Amortization of
tangible capital
assets 3,896,602
Net book value
of assets disposed 472,130
Capital assets
internally
funded (26,689,932)
Capital assets
debt funded (10,701,739)
Contributed capital
assets (845,882)
Debt issued 17,400,000
Unexpended debt (6,698,261)
Debt paid (634,674)
$122,463,390 $50,701,648
-- 15,382,507
-- (16,082,804)
(3,896,602)
(472,130)
26,689,932
10,701,739
845,882
(17,400,000)
6,698,261
634,674
$177,482,242
22,961,845
$152,792,589
24,689,653
Total $ 4,177,590 $146,265,146 $50,001,351 $200,444,087 $177,482,242
(1) Equity in tangible capital assets:
2012
2011
Tangible capital assets
Accumulated amortization
Long -term debt (note 9)
Unexpended debt
$ 202,714,902
(46,033,000)
(17,115,017)
6,698,261
$ 165,699,779
(42,886,698)
(349,691)
$ 146,265,146
$ 122,463,390
13
COUNTY OF NEWELL No. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2012
12. Accumulated surplus (continued):
(2) Restricted surplus is comprised of funds internally restricted as follows:
2012 2011
Paving $ 10,730,423 $ 13,117,298
Infrastructure 10,357,044
Future Expenditure 13,041,337
Vehicles, Machinery & Equipment 6,004,010
Regional Enhancement 3,684,072 6,370,691
Stabilization 2,847,112
Facilities 402,215 --
Fire Apparatus 250,000 63,165
Unexpended Budget Appropriation 2,685,138 --
Municipal Surplus 9,706,571
Administration 13,042,616
Secondary highway #847 700,145
Agriculture Service Board 740,636
Planning 141,668
Disaster Services 71,023
Special Constable 64,928
Shop 70,212
Public Works 5,912,339
Public Transportation 136,919
Economic Development 118,025
Rolling Hills water and sewer 80,817
Scandia water reservoir 69,185
Patricia sewer 73,484
Lake Newell sewer 31,626
Corporate Safety 4,300
Water 56,000
Sewer 108,000
Parks 22,000
$ 50,001,351 $ 50,701,648
14
COUNTY OF NEWELL No. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2012
13. Net municipal property taxes:
Budget
2012 2011
(Unaudited)
Taxation:
Real property taxes $ 13,611,477 $ 12,942,564 $ 12,602,000
Linear property taxes 25,407,884 25,407,884 24,927,486
Government grants in place of property
taxes 228,429 221,111 269,162
39,247,790 38,571,559 37,798,648
Requisitions:
Alberta School Foundation Fund 11,830,795 11,733,419 11,830,796
Newell Foundation 664,048 664,049 630,438
12,494,843 12, 397,468 12,461,234
Net municipal property taxes $ 26,752,947 $ 26,174,091 $ 25,337,414
14. Government transfers:
Budget
2012 2011
(Unaudited)
Transfers for operating:
Provincial government $ 987,346 $ 938,457 $ 1,035,371
Federal government 27,200 30,969
Local government 405,554 356,357 132,217
1,420,100 1,294, 814 1,198, 557
Transfers for capital:
Provincial government 16,869,872 9,640,616 17,076,929
Local government - 70,090 571,814
16,869,872 9,710,706 17,648,743
$ 18,289,972 $ 11,005,520 $ 18,847,300
15
COUNTY OF NEWELL No. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2012
15. Expenses by object:
Budget
2012
2011
Salaries, wages and benefits
Contracted and general services
Materials, goods, supplies and utilities
Transfers to organizations
Bank charges and short-term interest
Interest on long -term debt
Other expenditures
Amortization
(Unaudited)
$ 7,419,098
6,613,127
3,591,801
2,283,092
600
282,847
88,000
5,634,802
$ 6,626,248
3,829,256
2,495,296
2,530,290
596
442,926
280,509
3,896,602
$ 25,913,367 $ 20,101,723
$ 6,063,168
6,532,596
2,401,879
4,039,138
508
325,913
225,294
3,538,428
$ 23,126,924
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:
2012
2011
Salary (1)
Benefits &
Allowances (2)
Total
Total
Council:
Division 1
Division 2
Division 3
Division 4
Division 5
Division 6
Division 7
Division 8
Division 9
Division 10
$ 31,635
27,523
33,525
22,273
22,911
24,390
28,572
30,428
47,733
27,488
$ 5,835
582
5,867
1,122
1,148
4,586
5,666
1,451
2,202
5,623
$ 37,470
28,105
39,392
23,395
24,059
28,976
34,238
31,879
49,935
33,111
$ 33,192
34,291
40,569
22,936
35,552
30,588
34,062
32,803
45,305
34,751
$ 296,478
$ 34,082 $ 330,560
$ 344,049
Chief Administrative Officer $ 190,632 $ 38,970 $ 229,602 $ 226,311
16
COUNTY OF NEWELL No. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2012
16. Salary and benefits disclosure (continued):
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.
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:
2012 2011
Total debt limit
Total debt
$ 48,760,469 $ 45,092,463
(21,594,161) (5,445,212)
$ 27,166,308 $ 39,647,251
2012 2011
Debt servicing limit $ 8,126,745 $ 7,515,411
Debt servicing (2,942,755) (990,667)
$ 5,183,990 $ 6,524,744
17
COUNTY OF NEWELL No. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2012
17. Debt limits (continued):
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 214,326
people and about 423 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 9.91% of
pensionable earnings up to the year's maximum pensionable earnings under the Canada Pension
Plan and 13.74% on pensionable earnings above this amount. Employees of the County are
required to make current service contributions of 8.91% of pensionable salary up to the year's
maximum pensionable salary and 12.74% on pensionable salary above this amount.
Total current service contributions by the County to the LAPP in 2012 were $410,759 (2011 -
$359,721). Total current service contributions by the employees of the County to the LAPP in
2012 were $373,677 (2011 - $325,775).
At December 31, 2011, the LAPP disclosed an actuarial deficiency of $4.6 billion.
18
COUNTY OF NEWELL No. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2012
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.
19
COUNTY OF NEWELL No. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2012
21. Segment Disclosures:
Segment disclosures (Schedule 1) are intended to enable users to better understand the
government reporting entity and the major expense and revenue activities of the County.
The segments have been selected based upon functional activities provided by the County. For
each reported segment, revenues and expenses represent both amounts directly attributable to
the segment and amounts that are allocated on a reasonable basis. The functional areas that
have been separately disclosed, along with the services they provide are as follows:
(a) General government is comprised of Council, Legislative, Corporate Administration,
Finance, Information and Computer Services, Planning, Economic Development,
Corporate Safety, Agricultural Services, Fire and Disaster Services, Bylaw Enforcement,
Community Services, Recreation, Parks and Programs and Library.
(b) Public Works and Transportation is comprised of Roads and Engineering Services.
(c) Public Utilities is comprised of Water, Wastewater and Solid Waste.
22. Budget data:
The unaudited budget data presented in these consolidated financial statements is based upon
the 2012 budget approved by Council on December 22, 2011 and any subsequent budget
adjustments.
23. Approval of financial statements:
These financial statements were approved by Council and Management.
20
0
vJ
1
O
Z
J
W
W
Z
LL
0
Z
0
U
Schedule of Segmented Disclosures
Year ended December 31, 2012, with comparative figures for 2011
To r
H N
Public Utilities
Y C 0
O W
0
(.1 Q
a
O R
a r
00
v
c E
o • E
0
O r
1 N
Public Utilities
x 0 00 N 000 r 01 0) '[) 0)
V r N 0 N r N CO 0
(0 CO N 0) r0 O
) ( r r r
C) co 0 r r C7 N r
u r
N
(A
(A
6
rn
(0
r
NI" N 'D 0) 0
CO N' N' N 0
r Vrn N C r
? CO N in O) co N CO r
V 0)O N N O h d_ C CO
✓ V r r r N O 0 rn
CO (• NO V n r N h r
N r
N
• 0 0 V 00 CO (V O
O CO N CO rn 0) CO O CO N.
d' r (0 O V 0 (0 (0 0)
N- N CO CO (D 0) N
• h
co N r N.- C) r
N r r
N CO
' 00 00 • 1 M
(10) 0 0) N
1
N O
O r
' N r
0) Ci
✓ c)
• 0 0 0 00 CO N N V
0) 0) N r 0) O V 0
0 0 0 0 0) 0) CO N CO
✓ N N O) V (O (0 O rn
c0 0 0) 0 C) 0 0
0 0 CO r
N r
6,
0
00
O
t0+)
0
N
co
(0D 0 r 0 C) O N 0)) N
✓ N 0 r 4f) 0) N V
M N O 10 N CO
0 CO 0 C N N CO
O N V O CO N U)
O t0 N V C)
0) ' N CD ' N ' N
N S. 0 r
V CV
r
O 00'00 r V
✓ CO CD N 1 ' N to
CO- n v rn 0 0
co 0 N
N r ,Ni- r
N C)
CO 'O d' 0 CO CO 0 01 0)
O 0 0 co 0(O r O
CD N N 'O 0 CO r
0 r V 0)) Vg 0 CO C a
Io O O r a0 C) N
Co (Or r
N
CO
10
(0
0
N
0
(0
0 0 (0 0 (D (O 0) N
V' N 0) 0) 0) N 0 0
N N N N (O 01 0 0
(D O) N O N O (0
04040)0) c 0 0
(D CO V 'O d' N CO
O Ci N CJ C)
r V
N
' m
CO r
• c6 4
Q V
01 r
rD ' N
CO CV
CN)
✓ 'ri o) vi v (o
N CO t r r M
N N r Ci
0 00 0 10 0 N (OO O0
✓ CO 0 r O) 'o N 0 0
N. N CO N 0 r 000
CO, (M r N
0)
rn U a ▪ 2
E
Y3 2
c m E
w v
n o
0 c o 0
-o n (0 E
m 0 a C 0 d.
d C O V 0 9
O 0 0 0 N C -C
3 0 0 0) CO YO 01 d 0
o
C w U y 0 N
0 2 o
r
(O0i 0SO<
0)
CO
r
0(0 )
uS
0
CV
rn
N
r
co
n
ro
O
N
00
V
0)
r
0)
N
N
0)
0
0) W
rn 0)
rn 0
Ci
0 CO OD
0
✓ 0)
N 0 0)
v a
N
N 0 0
N 0 r
'n N
0 ▪ • ro N-
01 0)
c0 CO CO
CD ▪ CO 0
T-
V
uS
CC0 V °o
v cif
N
0) r
00 00 N
✓ W
CZ oi
N
O 0
0 O
E
O c
N
O «
v 2
0
N CD
D .0
N
CO N
O 0
) a
8
W
(0
a
0)
r=
N
C)
C
0
• E
a E
• to
0 0
(A
O
0)
0
0
69
Q
O
0
CO
4i
$ 29,964,737
V
0
0
0
N
4,
0)
0
V
0
Y3
0
0
N
C
4,
$ 23,809,090
0 O
CD
co
O
U 0
«
o
U
• 0
()
O
N • p
x0