HomeMy WebLinkAbout2013-12-31 Year End Audited Financial SatementsConsolidated Financial Statements of
COUNTY OF NEWELL
Year ended December 31, 2013
Management's Responsibility for the Consolidated Financial Statements
Management of the County of Newell is responsible for the preparation, accuracy, objectivity, and
integrity of the accompanying financial statements and the notes thereto. Management believes that
the financial statements present fairly the County's financial position as at December 31, 2013 and the
results of its operations for the year then ended.
The financial statements have been prepared in accordance with Canadian public sector accounting
standards. Financial statements are not precise, since they include certain amounts based on
estimates and judgments. Such amounts have been determined on a reasonable basis in order to
ensure that the financial statements are presented fairly in alt material respects.
In fulfilling its responsibilities and recognizing the limits inherent in all systems, management has
designed and maintained a system of internal controls to produce reliable information to meet
reporting requirements. The system is designed to provide management with reasonable assurance
that transactions are properly authorized, reliable financial records are maintained, and assets are
properly accounted for and safeguarded.
The County Council is responsible for overseeing management in the performance of its financial
reporting responsibilities, and for approving the financial statements. Council fulfills these
responsibilities by reviewing the financial information prepared by management and discussing
relevant matters with management and external auditors. Council is also responsible for
recommending the appointment of the County's external auditors.
The financial statements have been audited by the independent firm of KPMG LLP, Chartered
Accountants. Their report to the Members of Council of the County of Newell, stating the scope of
their examination and opinion on the financial statements follows.
nistrative Officer
014
z
Treasurer
41noi-
KPMG LLP Telephone (403) 380 -5700
500 Lethbridge Centre Tower Fax (403) 380 -5760
400 - 4th Avenue South Internet www.kpmg.ca
Lethbridge AB T1J 4E1
Canada
Independent Auditors' Report
To the Reeve and Members of Council of the County of Newell.
We have audited the accompanying consolidated financial statements of County of Newell (the
"County ") which comprise the consolidated statement of financial position as at December 31, 2013,
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 as at December 31, 2013, 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.
April 10, 2014
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
I"KPMG International'l, a Swiss entity.
KPMG Canada provides services to KPMG LLB
COUNTY OF NEWELL
Consolidated Statement of Financial Position
December 31, 2013, with comparative information for 2012
2013
2012
Financial assets:
Cash and cash equivalents (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)
Other financial assets
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
$ 24,824,788
1,116,368
8,334,254
35,139
33,292,357
5,005,001
24,921
72,632,828
5,222,960
362,731
1,468,140
3,828,867
20,449,278
337,897
315,376
235,084
$ 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 20)
32,220,333
40,412,495
38,460
179,395,313
1,608,875
181,042,648
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
Accumulated surplus (note 12)
$221,455,143 $200,444,087
The accompanying notes are an integral part of these consolidated financial statements.
1
COUNTY OF NEWELL
Consolidated Statement of Financial Activities
Year ended December 31, 2013, with comparative information for 2012
Budget
2013
2012
Revenues:
Net municipal property taxes (note 13) $ 27,565,327 $ 27,483,929 $ 26,174,091
Special levies 2,516,778 2,045,909 711,465
User fees and sale of goods 783,430 1,154,883 988,258
Government transfers (note 14) 1,393,729 886,142 1,294,814
Penalties and cost of taxes 125,550 153,848 164,918
Investment income 1,212,471 1,541,343 1,736,993
Licenses and permits 146,600 178,424 166,302
Other revenue 100,710 1,565,714 1,393,890
Gain (loss) on disposal of tangible
capital assets 334,200 365,342 (123,751)
34,178,795 35,375,534 32,506,980
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
489,492 456,097 433,035
4,142,362 3,592,537 3,220,198
287,100 260,472 251,127
1,467,578 1,283,897 1,060,690
187,540 165,893 145,619
13,539,527 11,790,873 9,722,194
122,973 92,484 92,701
1,804, 877 1,376,277 1,195,158
353,000 261,986 259,826
61,812 60,829 60,812
488,559 443,448 380,354
1,539, 396 1,439, 801 1,300,551
438,750 347,863 265,710
859,724 826,418 767,826
142,599 13 8, 917 140,682
1,175,656 2,600,016 805,240
27,100,945 25,137,808 20,101,723
Annual surplus
before the undernoted
Other:
Insurance proceeds
Contributed assets
Contributed from other
local government (note 16)
Government transfers (note 14)
Annual surplus
Accumulated surplus, beginning of year
7,077,850 10,237,726
12,211,157
19,289,007
200,444,087
1,450,000
2,795,262
6,528,068
21,011,056
200,444,087
12,405,257
845,882
9,71 0,706
22, 961,845
177,482,242
Accumulated surplus, end of year
$219,733,094
$221,455,143 $ 200,444,087
The accompanying notes are an integral part of these consolidated financial statements.
2
COUNTY OF NEWELL
Consolidated Statement of Change in Net Financial Assets
December 31, 2013, with comparative information for 2012
Budget
2013
2012
Annual surplus
Acquisition of tangible capital assets
Contributed tangible capital assets
Proceeds on disposal of tangible capital assets
Amortization of tangible capital assets
(Gain) loss on disposal of tangible capital assets
Use (acquisition) of inventories for consumption
Use (acquisition) of prepaid expenses
$19,289,007 $ 21,011,056 $ 22,961,845
(38, 534, 971)
440,000
5,518,066
(334,200)
(13,622,098)
(28,105,247) (37,391,671)
(845,882)
1,334,764 348,379
4,422;416 3,896,602
(365,342) 123,751
(1,702,353) (10,906,976)
(486,076) (169,438)
47,621 70,487
Change in net financial assets
Net financial assets, beginning of year
(13,622,098)
42,553,303
(2,140,808)
42,553,303
(11,005, 927)
53,559,230
Net financial assets, end of year
$28,931,205 $ 40,412,495 $ 42,553,303
The accompanying notes are an integral part of these consolidated financial statements.
3
COUNTY OF NEWELL
Consolidated Statement of Cash Flows
Year ended December 31, 2013, with comparative information for 2012
2013 2012
Cash provided by (used in):
Operations:
Annual surplus $ 21,011,056 $ 22,961,845
Items not involving cash:
Amortization 4,422,416 3,896,602
Contributed assets - (845,882)
(Gain) loss on disposal of tangible capital assets (365,342) 123,751
Change in non -cash financial assets and liabilities:
Taxes and grants in place of taxes receivable (225,457) (30,276)
Trade and other receivables (2,075,674) 1,546,458
Other financial assets (24,921)
Prepaid expenses 47,621 70,487
Inventory for consumption (486,076) (169,438)
Accounts payable and accrued liabilities (2,030,248) 334,492
Employee benefit obligations 40,816 88,710
Unearned revenue 412,379 (1,496,707)
Landfill closure and post - closure costs 45,682 (47,292)
Gravel pit closure and post - closure costs - 21,675
Other financial liabilities (7,371) (92,514)
20,764,881 26, 361,911
Capital activities:
Proceeds on disposal of tangible capital assets 1,334,764 348,379
Cash used to acquire tangible capital assets (28,105,247) (37,391,671)
(26,770,483) (37,043,292)
Investing activities:
Decrease (increase) in temporary investments 3,333,745 (11,279,976)
Decrease (increase) in investments 2,609,371 (8;241,296)
Payments received on notes receivable 915,762 870,463
6,858,878 (18,650,809)
Financing activities:
Repayment of long -term debt:
- operating (650,277) (616,377)
- capital' (1,665,739) (634,674)
Proceeds from debt issues 5,000,000 17,400,000
Increase in deposit liabilities - 76,814 9,203
2,760, 798 16,158,152
Increase (decrease) in cash and cash equivalents 3,614,074 (13,174,038)
Cash and cash equivalents, beginning of year 3,749,538 16,923,576
Cash and cash equivalents, end of year (note 2) $ 7,363,612 $ 3,749,538
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, 2013
1. Significant accounting policies:
The consolidated financial statements of the County of Newell (the "County ") are the
representations of management prepared in accordance with Canadian Public Sector accounting
standards. 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
Notes to Consolidated Financial Statements
Year ended December 31, 2013
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 and 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.
(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.
(1)
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
I 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.
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2013
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.
0) 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
Notes to Consolidated Financial Statements
Year ended December 31, 2013
2. Cash and temporary investments:
2013 2012
Cash $ 7,363,612 $ 3,749,538
Temporary investments 17,461,176 20,794,921
$ 24,824,788 $ 24,544,459
Included in cash are amounts aggregating $235,084 (2012 - $158,270) not available for current
use. Also included in cash and temporary investments is $5,072,945 (2012 - $6,698,261) of
unexpended debt proceeds.
Tax sale surplus
Public reserve
2013 2012
$ 12,396 $ 12,254
222,688 146,016
$ 235,084 $ 158,270
Temporary investments consist of GIC's that have an average interest rate of 1.83% (2012 —
1.57 %) and mature in periods ranging from January, 2014 to October, 2014, and term notes with
an effective interest rate of 2.76% (2012 — nil %) and mature in October, 2014.
Cash and cash equivalents are comprised of:
2013 2012
Cash and temporary investments
Less investments with original maturities
greater than 90 days
$ 24,824,788 $ 24,544,459
(17,461,176) (20,794,921)
$ 7,363,612 $ 3,749,538
3. Taxes and grants in place of taxes receivable:
2013 2012
Current year $ 588,708 $ 411,923
Arrears 627,660 498,988
1,216,368 910,911
Allowance for uncollectible taxes (100,000) (20,000)
$ 1,116,368 $ 890,911
8
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2013
4. Investments:
2013 2012
Fixed income securities $ 33,208,154 $ 35,828,243
Credit Union Common shares 5 5
Newell Regional Services Corporation:
Common shares 20 20
Preferred shares 84,178 73,460
84,198 73,480
$ 33,292,357 $ 35,901,728
Long -term investments consist of fixed income securities that yield interest from 0.22% to 6.54%
and mature in periods 2014 through 2026. The investments have an average expected yield of
2.64% and an aggregate market value of $32,722,792 (2012 - $36,225,703).
5. Notes receivable:
2013 2012
Newell Foundation, repayable in annual installments of
$896,630 including interest at 5.5 %, maturing in 2018. $ 3,828,867 $ 4,479,144
Tilley and District Fire Association, repayable in annual
installments of $96,327 including interest at 3.497 %, 587,693 660,908
maturing in 2020.
Newell Regional Services Corporation, non - interest bearing,
maturing in 2017. 550,000 550,000
Division 5 & 10, matured in 2013. 124,542
Bow Slope Fire Division, matured in 2013. - 30,763
Rolling Hills Fire Division, repayable in annual installments of
$39,585 including interest at 3.954 %, maturing in 2014. 38,441 75,406
$ 5,005,001 $ 5,920,763
9
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2013
6. Tangible capital assets:
Cost
2012
Additions
Disposals
2013
Land $
Land improvements
Buildings
Engineered structures
Machinery and equipment
Vehicles
Work in progress, net
of transfers
5,337,570
1,113,476
1,213,478
115,589,689
9,530,567
3,703,789
66,226,334
$ 94,030
711,657
17,733,596
8,472,378
2,153,109
3,779
(1,063,302)
(11,250) $ 5,420,350
(7,554) 1,817,579
(156,294) 18,790,780
(225,518) 123,836,549
(1,417,012) 10,266,664
(115,765) 3,591,803
65,163, 032
Total
$ 202,714,903
$ 28,105,247 $ (1,933,393) $228,886,757
Accumulated
amortization
2012
Disposals
Amortization
expense
2013
Land improvements $ 358,643
. Buildings 445,784
Engineered structures 39,978,382
Machinery and equipment 3,371,053
Vehicles 1,879,138
$ (7,554)
(52,206)
(100,447)
(728,587)
(75,178)
110,156 $ 461,245
240,571 634,149
3,121,525 42,999,460
668,635 3,311,101
281,529 2,085,489
Total $ 46,033,000
$ (963,972) $ 4,422,416 $ 49,491,444
Net book value
2013
2012
Land
Land improvements
Buildings
Engineered structures
Machinery and equipment
Vehicles
Work in progress
$ 5,420,350 $ 5,337,570
1,356,334 754,833
18,156,631 767,694
80,837,089 75,611,307
6,955,563 6,159,514
1,506,314 1,824,651
65,163,032 66,226,334
Total $ 179,395,313 $ 156,681,903
10
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2013
7. Employee benefit obligations:
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) and are entitled to these benefits
within the next budgetary year.
8. Unearned Revenue:
Description
Recognized as
2012 Additions revenue
2013
Rural Water Deposits $ 662,310 $ 246,885 $ (430,027) $ 479,168
Street Improvement Grant 173,520 173,520
MSI Capital (Tilley) -- 639,668 639,668
Other 219,931 149,023 (193,170) 175,784
Total
$ 1,055,761 $ 1,035,576 $ (623,197) 1,468,140
9. Long -term debt — operating:
2013 2012
Debenture supported with notes receivable $ 3,828,867 $ 4,479,144
Principal and interest repayments are due as follows:
Principal
Interest Total
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
2018 849,886 46,744 896,630
Thereafter --
$ 3,828,867 $ 654,283 $ 4,483,150
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 $255,294 (2012 — $341,841).
The County's total cash payments for interest in 2013 were $246,353 (2012 - $280,253).
11
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2013
10. Long -term debt — capital:
2013 2012
Tax supported debentures $ 20,449,278 $ 17,115,017
Principal and interest repayments are due as follows:
Principal
Interest Total
2014 $ 2,145,860 $ 475,741 $ 2,621,601
2015 2,198,496 423,105 2,621,601
2016 2,164,280 370,068 2,534,348
2017 2,215,800 318,548 2,534,348
2018 2,261,785 265,780 2,527,565
Thereafter 9,463,057 526,185 9,989,242
$ 20,449,278 $ 2,379,427 $ 22,828,705
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 2023. The average annual interest rate is 2.39% for 2013 (2012 — 2.28 %). 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 $384,355 (2012 - $173,917).
The County's total cash payments for interest in 2013 were $380,386 (2012 - $155,855).
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 - ciosure 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 $337,897 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
Notes to Consolidated Financial Statements
Year ended December 31, 2013
12. Accumulated surplus:
Unrestricted
net assets
Equity in
tangible
capital
assets (1)
Restricted Total
Surplus (2) 2013
Total
2012
Beginning
balance $ 4,177,590
Annual surplus 21,011,056
Transfers to
restricted surplus (24,453,576)
Transfers from
restricted surplus 17,018,764
Amortization of
tangible capital
assets 4,422,416
Net book value
of assets disposed 969,421
Capital assets
internally
funded (21,479,932)
Capital assets
debt funded (6,625,315)
Debt issued 5,000,000
Use of unexpended
debt 1,625,315
Debt paid (1,665,739)
$146,265,146
$50,001,351 $200,444,087
21,011,056
24,453,576
-- (17,018,764)
(4,422,416)
(969,421)
21,479,932
6,625,315
(5,000,000)
(1,625,315)
1,665,739
$177,482,242
22,961,845
Total
$ -- $164,018,980 $57,436,163 $221,455,143 $200,444,087
(1) Equity in tangible capital assets:
2013
2012
Tangible capital assets
Accumulated amortization
Long -term debt (note 10)
Unexpended debt
$ 228,886,757
(49,491,444)
(20,449,278)
5,072,945
$ 202,714,903
(46,033,000)
(17,115, 017)
6,698,260
$ 164,018,980
$ 146,265,146
13
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2013
12. Accumulated surplus (continued):
(2) Restricted surplus is comprised of funds internally restricted as follows:
2013
2012
Paving
Infrastructure
Future Projects
Vehicles, Machinery & Equipment
Regional Enhancement
Stabilization
Facilities
Fire Apparatus
Tilley
Unexpended Budget Appropriation
$ 7,427,991 $ 10,730,423
11, 917, 807 10, 357, 044
21,286,610 13,041, 337'
5,764,056 6,004,010
3,457,464 3,684,072
2,847,112 2,847,112
913,490 402,215
598,150 250,000
850,725 --
2,372,758 2,685,138
$ 57,436,163 $ 50,001,351
13. Net municipal property taxes:
Budget
2013
2012
Taxation:
Real property taxes
Linear property taxes
Government grants in place of property
taxes
Requisitions:
Alberta School Foundation Fund
Newell Foundation
$ 13,705,039
26,540,054
293,178
40,538,271
12,196,492
776,452
12,972,944
$ 13,651,062
26,508,789
304,537
40,464,388
12,204,007
776,452
12,980,459
$ 12,942,564
25,407,884
221,111
38,571,559
11,733,419
664,049
12,397,468
Net municipal property taxes $ 27,565,327 $ 27,483,929 $ 26,174,091
14
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2013
14. Government transfers:
Budget
2013 2012
Transfers for operating:
Provincial government $ 1,021,225 $ 532,942 $ 938,457
Local government 372,504 353,200 356,357
1,393,729 886,142 1,294,814
Transfers for capital:
Provincial government 12,211,157 6,521,623 9,640,616
Local government - 6,445 70,090
12,211,157 6,528,068 9,710,706
$ 13,604,886 $ 7,414,210 $ 11,005,520
15. Expenses by object:
Budget
2013 2012
Salaries, wages and benefits $ 7,622,505 $ 6,814,669 $ 6,626,248
Contracted and general services 5,451,789 4,949,447 3,829,256
Materials, goods, supplies and utilities 4,896,079 4,007,534 2,495,296
Transfers to organizations 2,907,566 4,186,278 2,530,290
Bank charges and short -term interest 600 830 596
Interest on long -term debt 681,840 630,708 442,926
Other expenditures 22,500 125,926 280,509
Amortization 5,518,066 4,422,416 3,896,602
$ 27,100,945 $ 25,137,808 $ 20,101,723
15
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2013
16. Contributed from other local government
Effective August 31, 2013, the Lieutenant Governor in Council issued an order:
(1) Dissolving the Village of Tilley on August 31, 2013;
(ii) Directing land allocated as part of the Village of Tilley to become part of the County of Newell;
and;
(iii) Directing that the assessor for the County of Newell keep the assessment and tax rolls for the
land separate from the assessment and tax rolls for other land in the County of Newell for the
period from August 31, 2013 to December 31, 2013, inclusive.
The County of Newell received all assets and assumed all liabilities of the Village as at August 31,
2013. The dissolution is shown as a contribution from other local government in the December
31, 2013 Statement of Financial Activities.
August 30,
2013
Financial assets:
Cash and cash equivalents $ 1,333,407
Taxes and grants in place of taxes receivable 139,206
Trade and other receivables 5,853
Inventory for resale 2,772
Investments 10,728
1,491,966
Financial liabilities:
Accounts payable and accrued liabilities 60,587
Post closure liability 50,662
Unearned revenue 415,370
526,619
Net financial assets 965,347
Non - financial assets:
Tangible Capital Assets 1,829,915
Contributed from other local government $ 2,795,262
16
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2013
17. 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:
2013
2012
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 a
Division 10
$ 27,630
28,720
30,293
20,391
23,646
26,455
28,065
30,323
44,215
26,805
$ 4,722
1,311
4,826
1,197
1,695
3,937
4,725
1,400
1,988
4,690
$ 32,352
30,031
35,119
21,588
25,341
30,392
32,790
31,723
46,203
31,495
$ 37,470
28,105
39,392
23,395
24,059
28,976
34,238
31,879
49,935
33,111
$ 286,543 $ 30,491. $ 317,034
$ 330,560
Chief Administrative Officer $ 197,931 $ 42,205
$ 240,136 $ 229,602
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
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2013
18. 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:
2013 2012
Total debt limit
Total debt
$ 55,238,301
(24,278,145)
$ 48,760,469
(21, 594,161)
$ 30,960,156 $ 27,166,308
2013 2012
Debt servicing limit $ 9,206,384 $ 8,126,745
Debt servicing (3,518,232) (2,942,755)
$ 5,688,152 $ 5,183,990
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.
19. 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 223,643
people and about 428 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 10.43% of
pensionable earnings up to the year's maximum pensionable earnings under the Canada Pension
Plan and 14.47% on pensionable earnings above this amount. Employees of the County are
required to make current service contributions of 9.43% of pensionable salary up to the year's
maximum pensionable salary and 13.47% on pensionable salary above this amount.
Total current service contributions by the County to the LAPP in 2013 were $455,921 (2012 -
$410,759). Total current service contributions by the employees of the County to the LAPP in
2013 were 6417,856 (2012 - $373,677).
At December 31, 2012, the LAPP disclosed an actuarial deficiency of $4.9 billion.
18
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2013
20. 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 these
matters are without substantial merit and no provision has been made in the accounts.
21. 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) 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.
(c) 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
Notes to Consolidated Financial Statements
Year ended December 31, 2013
22. Segmented Disclosures:
Segmented 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.
23. Comparative information:
Certain . comparative information has been reclassified from those previously presented to
conform to the presentation of the 2013 financial statements.
20
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2013
24. Budget information:
The budget information presented in these consolidated financial statements is based upon the
2013 budget approved by Council on December 20, 2012 and any subsequent budget
amendments. Adjustments to budgeted values were required to provide comparative budget
values based on the full accrual basis of accounting. The following chart reconciles the approved
budget with the budget information presented in these consolidated statements.
Revenue:
Approved budget:
Budget amendments
$ 80,197,170
2,582,798
82, 779, 968
Adjustments:
Proceeds on debt issue (7,939,000)
Transfers from restricted surplus (15,478,072)
Transfers to organizations (12,972,944)
Total budgeted revenue 46,389,952
Expenses'
Approved budget:
Budget amendments
$ 80,197,170
2,582,798
82,779,968
Adjustments:
Tangible capital assets (38,534,971)
Debt principal repayments (1,840,466)
Unfunded amortization 2,071,947
Transfers to restricted surplus (4,402,589)
Transfers to organizations (12,972,944)
Total budgeted expenses 27,100,945
Budgeted annual surplus $ 19,289,007
25. Approval of financial statements:
These financial statements were approved by Council and Management.
21
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