INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF COUNCIL
SUMMER VILLAGE OF GHOST LAKE
Report on the Consolidated Financial Statements
We have audited tlie accompanying consolidated financial statements of tlie Summer Village ofGhost Lake, which comprise of tlie consolidated statement of financial position as at December31, 2015, and the consolidated statements of operations, change in net financial assets (debt),and cash flows for the year then ended, and a summary of significant accounting policies andother explanatory information.
Management's Responsibility for tlie Consolidated Financial Statements
Management is responsible for tlie preparation and fair presentation of these consolidatedfinancial statements in accordance with Canadian public sector accounting standards, and forsuch internal control as management determines is necessary to enable the preparation ofconsolidated financial statements that are free from material misstatement, whether due tofraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based onour audit. We conducted our audit in accordance with Canadian generally accepted auditingstandards. Those standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the consolidated financialstatements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the consolidated financial statements. The procedures selected depend on theauditor's judgment, including the assessment of tlie risks of material misstatement of theconsolidated financial statements, whether due to fraud or error. In making those risk
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assessments, the auditor considers internal control relevant to the entity's preparation and fairpresentation of the consolidated financial statements in order to design audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the entity's internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of accounting estimatesmade by management, as well as evaluating the overall presentation of the consolidatedfinancial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, thefinancial position of the Summer Village of Ghost Lake as at December 31,2015, the results of itsoperations, change in its net financial assets (debt), and its cash flows for the year then ended inaccordance with Canadian public sector accounting standards.
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January 26,2016Calgary, Alberta Professional Accountants
Summer Village of Ghost Lake
Consolidated Statement of Financial Position
As at December 31,2015
FINANCIAL ASSETS
Cash and temporary investments (Note 2)Receivables
Taxes and grants in lieu receivables (Note 3)Trade and other receivables
LIABILITIES
Accounts payable and accrued liabilitiesDeferred revenue (Note 4)
NET FINANCIAL ASSETS (DEBT)
NON-FINANCIAL ASSETS
Tangible capital assets (Note 5, Schedule 2)Prepaid expenses
ACCUMULATED SURPLUS (Note 9)
Approved and Adopted by Councilor XksW *A0+-*y W{A.V \o
Mayor
2015
$
2014
$
343,340 294,994
8,477
351,816
677
10,687306,358
20,248
37,385
57,633
28,367
6,000
34,367
294,183 271,991
697,048
1,095
698,143
734,735
125
734,860
992,325 1,006,851
The accompanying notes form an integral part of these financial statements
Summer Village of Ghost Lake
Consolidated Statement of OperationsFor the Year Ended December 31,2015
REVENUE
Net municipal taxes (Schedule 3)User fees and sales ofgoodsGovernment transfers for operating (Schedule 4)Penalties and costs on taxes
Investment income
Other
Total Revenue
EXPENSES
LegislativeAdministrative
Fire
Common services
Roads, streets, walks, lightingStorm systemWater supply and distributionWaste managementLand use planning, zoning, developmentRecreation and parksCulture
Total Expenses
(SHORTFALL) EXCESS OF REVENUE OVER EXPENSES - BEFORE OTHER
OTHER
Government transfers for capital (Schedule 4)
(SHORTFALL) EXCESS OF REVENUE OVER EXPENSES
ACCUMULATED SURPLUS, BEGINNING OF YEAR
ACCUMULATED SURPLUS, END OF YEAR
Budget 2015 2014
$ $ $(Unaudited)
82,681 82,463 79,183- 7,706 6,384
13,285 26,633 7,085- 375 1,119
300 1,911 2,242- 5,419 3,150
96,266 124,506 99,163
600 721 1,24445,039 43,245 41,348
22,569 22,592 22,6951,354 1,337 1,354
16,358 15,894 18,63514,347 9,491 97
57 57 57
12,050 10,768 11,911500 17,882 -
15,359 16,143 18,109829 902 814
129,062 139,032 116,263
(32,796) (14,526) (17,100)
40,000 - -
7,204 (14,526) (17,100)
810,652 1,006,851 1,023,951
817,856 992,325 1,006,851
The accompanying notes form an integral part of these financial statements
Summer Village of Ghost Lake
Consolidated Statement of Change in Net Financial Assets (Debt)For the Year Ending December 31,2015
EXCESS (SHORTFALL) OF REVENUES OVER EXPENSES
Contributed capital assetsAmortization of tangible capital assets
Acquisition of prepaid assetsUse of prepaid assets
INCREASE (DECREASE) IN NET DEBT
NET FINANCIAL ASSETS (DEBT), BEGINNING OF YEAR
NET FINANCIAL ASSETS (DEBT), END OF YEAR
Budget$
(Unaudited)
2015
$
2014
$
7,204 (14,526) (17,100)
(40,000)37,687 37,988
(40,000) 37,687 37,988
- (1,095)125 970
- (970) 970
(32,796)
271,993
22,192
271,991
21,858
250,133
239,197 294,183 271,991
The accompanying notes form an integral part of these financial statements
Summer Village of Ghost Lake
Consolidated Statement of Cash Flows
For the Year Ended December 31,2015
NET INFLOW (OUTFLOW) OF CASH RELATED TOTHE FOLLOWING ACTIVITIES:
OPERATING
Shortfall of revenues over expensesNon-cash items included in excess (shortfall) of
revenues over expenses:
Amortization of tangible capital assetsTangible capital assets received as contributions
Non-cash charges to operations (net change):Decrease (increase) in taxes and grants in lieu receivablesDecrease (increase) in trade and other receivablesDecrease (increase) in prepaid expensesIncrease (decrease) in accounts payable and accrued liabilitiesIncrease (decrease) in deferred revenue
Cash provided by operating transactions
CAPITAL
Acquisition of tangible capital assetsSale of tangible capital assets
Cash applied to capital transactions
CHANGE IN CASH AND EQUIVALENTS DURING THE YEAR
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
Cash and cash equivalents is made up of:Cash and temporary investmentsLess: restricted portion of cash and temp investments (Note 2)
2015 2014
$ $
(14,526) (17,100)
37,687 37,988
678 676
2,210 49,573(970) 970
(8,119) (2,635)31,385 2,23748,346 71,708
- -
48,346
294,994
71,708
223,286
343,340 294,994
343,340
(290,655)52,684
294,994
(241,744)53,250
The accompanying notes form an integral part of these financial statements
TAXATION
Summer Village of Ghost Lake
Schedule of Property and Other TaxesFor the Year Ended December 31,2015
Schedule 3
Real property taxesLinear property taxes(Over) under levy adjustment
REQUISITIONSCalgary RCSSD #1 Separate School BoardAlberta School Foundation Fund
NET MUNICIPAL TAXES
Budget$
(Unaudited)
2015
$
2014
$
197,987322
197,768322
200,935317
198,309 198,090 201,252
17,015
98,613
17,015
98,613
18,034
104,035
115,628 115,628 122,069
82,681 82,463 79,183
TRANSFERS FOR OPERATING:
Provincial Government
Other Local Governments
TRANSFERS FOR CAPITAL:
Federal Government
Provincial Government
Summer Village of Ghost Lake
Schedule of Government Transfers
For the Year Ended December 31,2015Schedule 4
Budget$
(Unaudited)
2015
$
2014
13,285 26,633 7,085
13,285 26,633 7,085
40,000
40,000 - -
53,285 26,633 7,085
Summer Village of Ghost Lake
Schedule of Consolidated Expenditures by ObjectFor the Year Ended December 31,2015
Schedule 5
CONSOLIDATED EXPENSES BY OBJECT
Salaries, wages, and benefitsContracted and general servicesPurchases from other governmentsMaterials, goods, supplies, and utilitiesAmortization of tangible capital assetsBank chargesOther expenditures
Budget 2015 2014
$ $ $(Unaudited)
3,237 2,521 2,509
79,578 91,759 66,5172,200 1,764 1,6506,100 4,522 6,797
38,121 37,688 37,988- 50 51
779 728 752
130,015 139,032 116,264
10
COST:
BALANCE, BEGINNING OF YEAR
Acquisition of tangible capital assetsConstruction - in - progressDisposal of tangible capital assetsWrite down of tangible capital assets
BALANCE, END OF YEAR
ACCUMULATED AMORTIZATION:
BALANCE, BEGINNING OF YEAR
Annual amortization
Accumulated amortization on disposals
BALANCE, END OF YEAR
NET BOOK VALUE OF
TANGIBLE CAPITAL ASSETS
2014 NET BOOK VALUE OF
TANGIBLE CAPITAL ASSETS
LAND
SUMMER VILLAGE OF GHOST LAKESchedule ofTangible Capital Assets
For the Year Ended December 31,2015Schedule 2
ENGINEERED STRUCTURES MACHINERY
LAND IMPROVEMENT BUILDINGS ROADS/STREETS WATER SYSTEM STORM SYSTEM and EQUIPMENT VEHICLES2015
$
2014
$
36,970 130,766 423,348 337,285
0 0
36,970 130,766 423,348 337,285
80,098 47,789 86,551
4,189 16,706 14,358
84,287 64,496 100,910
36,970 46,478 358,852 236,375
36,970 50,667 375,558 250,733
4,298
4,298
1,394
57
1,451
2,847
2,904
7,284 31,287 17,522
0 0
988,758 988,758
0 0
0 0
0 0
0 0
7,284
2,865
97
31,287 17,522 988,758 988,758
21,157 14,168 254,023 216,035
1,248 1,032 37,688 37,9880 0
2,962 22,404 15,200 291,710 254,023
4,322 *,882 2,322 697,048 734,735
4,419 10,130 3,354 734,735 772,723
SUMMER VILLAGE OF GHOST LAKE
Schedule of Changes in Accumulated SurplusFor the Year Ended December 31,2015
Schedule 1
Unrestricted Restricted Equity in TangibleSurplus Surplus Capital Assets
BALANCE, BEGINNING OF YEAR
Excess (deficiency) of revenues over expensesUnrestricted funds designated for future useCurrent year funds used for tangible capital assetsAnnual amortization expense
Change in accumulated surplus
BALANCE, END OF YEAR
o>
51,958
(14,526)(23,161)
220,158
23,161
734,735
37,687 - (37,687)
(0) 23,161 (37,687)
51,958 243,319 697,048
2015
$
2014
$
1,006,851
(14,526)
1,023,951
(17,100)
(14,526) (17,100)
992,325 1,006,851
REVENUE
Net municipal taxesGovernment transfers
User fees and sales ofgoodsInvestment income
Other revenues
EXPENSES
Contract & general servicesPurchases from other governmentsSalaries & wagesGoods & suppliesTransfers to local boards
Other expenses
NET REVENUE, BEFOREAMORTIZATION
Amortization expense
NET REVENUE
SUMMER VILLAGE OF GHOST LAKE
Schedule of Segmented DisclosureFor the Year Ended December 31, 2015
Schedule 6
General Protective Transportation Planning & Recreation Environmental OtherGovernment Services Services Development & Culture Services
82,46326,633
180 7,5261,9115,794
116,980 7,526
,080 2,770 750 17,882 18,274 9,0031,764
465 2,056286 2,363 785 1,088
728
50
43,880 5,133 1,535 17,882 22,146 10,768 0
73,100 (5,133) (1,535) (17,882) (14,620) (10,768) 0
(86) (17,459) (15,695) (4,293) (154)
73,014 (22,592) (17,230) (17,882) (18,913) (10,922) 0
Total
$
82,46326,633
7,7061,9115,794
124,506
91,7591,7642,5214,522
728
50
101,344
23,162
(37,688)
(14,526)
Summer Village of Ghost LakeNotes to Financial Statements
For the Year ended December 31,2015
SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements for the Summer Village of Ghost Lake arethe representations of management prepared in accordance with generallyaccepted accounting principles for local governments established by the PublicSector Accounting and Auditing Board of the Canadian Institute of CharteredAccountants. Significant aspects of the accounting policies adopted by theSummer Village of Ghost Lake are as follows:
a) Reporting Entity
The consolidated financial statements reflect the assets, liabilities,revenues and expenditures and changes in the fund balances and infinancial position of the reporting entity which comprises all theorganizations that are accountable for the administration of their financialaffairs and resources to the Council and are owned or controlled by themunicipality.
The schedule of taxes levied also includes requisitions for education thatare not part of the municipal reporting entity.
The statements exclude trust assets that are administered for the benefit of
external parties. Interdepartmental and organizational transactions andbalances are eliminated.
b) Basis of Accounting
The financial statements are prepared using the accrual basis ofaccounting. The accrual basis of accounting records revenue as it isearned and measurable. Expenses are recognized as they are incurred andmeasurable based upon receipt of goods or services and/or the legalobligation to pay.
Funds from external parties and earnings thereon restricted by agreementor legislation are accounted for as deferred revenue until used for thepurpose specified.
Government transfers, contributions and other amounts are received fromthird parties pursuant to legislation, regulation or agreement and may onlybe used for certain programs, in the completion of specific work, or for thepurchase of tangible capital assets. In addition, certain user charges andfees are collected for which the related services have yet to be performed.
12
Summer Village of Ghost LakeNotes to Financial Statements
For the Year ended December 31,2015
Revenue is recognized in the period when the related expenses areincurred, services performed orthe tangible capital assets are acquired.
c) Use of Estimates
The preparation of financial statements in conformity with Canadiangenerally accepted accounting principles requires management to makeestimates and assumptions that affect the reported amount of assets andliabilities and disclosure of contingent assets and liabilities at the date ofthe financial statements, and the reported amounts of revenue andexpenditure during the period. Where measurement uncertainty exists, thefinancial statements have been prepared within reasonable limits ofmateriality. Actual results could differ from those estimates.
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 amountrequisitioned.
If the actual levy exceeds the requisition, the over-levy is accrued as aliability and property tax revenue is reduced. Where the actual levy is lessthan the requisition amount, the under-levy is accrued as a receivable andas property tax revenue.
Requisition tax rates in the subsequent year are adjusted for any over-levies or under-levies of the prior year.
e) Government Transfers
Government transfers are the transfer of assets from senior levels of
government that are not the result of an exchange transaction, are notexpected to be repaid in the future, or the result of a direct financial return.
Government transfers are recognized in the financial statements arerevenues in the period in the period in which events giving rise to thetransfer occur, providing the transfers are authorized, any eligibilitycriteria have been met, and reasonable estimates of the amounts can bedetermined.
13
Summer Village of Ghost LakeNotes to Financial Statements
For the Year ended December 31,2015
f) Investments
Investments are recorded at amortized cost. Investment premiums anddiscounts are amortized on the net present value basis over the term of therespective investments. When there has been a loss in value that is otherthan a temporary decline, the respective investment is written down torecognize the loss.
g) Tax Revenue
Tax revenues are recognized when the tax has been authorized by bylawand the taxable event has occurred.
School requisitions operate as a flow through and are excluded frommunicipal revenue.
h) Non-Financial Assets
Non-financial assets are not available to discharge existing liabilities andare held for use in the provision of services. They have useful livesextending beyond the current year and are not intended for sale in thenormal course of operations. The change in non-financial assets duringthe year, together with the excess of revenues over expenses, provides theconsolidated Change in Net Financial Assets (Debt) for the year.
i. Tangible Capital Assets
Tangible capital assets are recorded at cost which includes all amountsthat are directly attributable to acquisition, construction, development orbetterment of the asset. The cost, less residual value, of the tangiblecapital assets is amortized on a straight-line basis over the estimated usefullife as follows:
Type of Asset Maximum Useful Life
Land Improvements 15-25Buildings 25-50Engineered Structures 5-45Equipment 5-30Vehicles 10-25
Assets under construction are not amortized until the asset is available forproductive use.
14
2.
Summer Village of Ghost LakeNotes to Financial Statements
For the Year ended December 31,2015
ii) Contributions of Tangible Capital Assets
Tangible capital assets received as contributions are recorded at fair valueat the date of receipt and also are recorded as revenue.
iii) Leases
Leases are classified as capital or operating leases. Leases which transfersubstantially all of the benefits and risks incidental to ownership ofproperty are accounted for as capital leases. All other leases are accountedfor as operating leases and the related lease payments are charged toexpenses.
iv) Cultural and Historical Tangible Capital Assets
Works of art for display are not recorded as tangible capital assets but aredisclosed.
CASH AND TEMPORARY INVESTMENTS
2015
$
2014
$
Cash
Temporary Investments
Total Cash and Temporary Investments
18,340
325,000
343,340
14,994
280,000
294,994
Guaranteed Investment Certificates have an effective interest rate of .70% and mature in
less than one year.
Restricted Cash
2015
$
2014
$
Restricted surplusDeferred revenue
Development agreement deposits
Total Cash and Temporary Investments
243,320
37,385
9,950
290,655
14,994
280,000
15,585
241,744
15
Summer Village of Ghost LakeNotes to Financial Statements
For the Year ended December 31,2015
TAXES AND GRANTS IN PLACE OF TAXES RECEIVABLES
Current:
Current taxes and grants in lieuLess: allowances for doubtful accounts
Non-current:
Tax arrears and grants in lieu
4. DEFERRED REVENUE
Municipal Sustainability - OperatingMunicipal Sustainability -CapitalBasic Municipal Transportation GrantNew Deal for Cities and Communities
ACP - Collaboration Grant
Prepaid Taxes
2015
2015
2014
$
2014
677
677
677
4,207
134
5,380
- 115
30,749
1,122 1,678
37,385 6,000
16
5.
Summer Village of Ghost LakeNotes to Financial Statements
For the Year ended December 31,2015
TANGIBLE CAPITAL ASSETS
Net Book Value
Land
Land ImprovementsBuildingsRoads
Water system
Storm system
Machinery, equipment & furnishingsVehicles
2015 2014
Cost Cost
$ $
36,970 36,970
46,478 50,667
358,852 375,558
236,375 250,733
2,847 2,904
4,322 4,419
8,882 10,130
2,321 3,354
697,047 734,735
6. SALARY AND BENEFITS DISCLOSURE
Disclosure of salaries and benefits for municipal officials, the chief administrativeofficer and designated officers as required by Alberta Regulation 313/2000 is asfollows:
2015 2014
Contract/ Benefits & Total Total
Remuneration Allowances
Councillor Brian Oblak 100 100 100
Councillor Noel Betts 100 100 100
Councillor Warren Wilson 100 100 100
Chief Administrative Officer 28,140 901 29,041 27,076
1. Contract includes regular pay, general office expenses and equipmentrental
2. Benefits and allowances include mileage reimbursement
17
Summer Village of Ghost LakeNotes to Financial Statements
For the Year ended December 31,2015
7. DEBT LIMITS
Total Debt Limit
Total Debt
Amount total debt limit exceeded
Service on debt limit
Service on debt
Amount service on debt limited exceeded
2015
$
186,760
0
2014
$
148,746
0
186,760 148,746
31,127
0
24,791
0
31,127 24,971
Section 276(2) of the Municipal Government Act requires that debt and debtlimits as defined by Alberta Regulation 255/00 for the Summer Village of GhostLake be disclosed as follows:
The debt limit is calculated at 1.5 times revenue of the municipality (as defined inAlberta Regulation 255/2000 and the debt service limit is calculated at 0.25 timessuch revenue. Incurring debt beyond these limitations requires approval by theMinister of Municipal Affairs. These thresholds are guidelines used by AlbertaMunicipal Affairs to identify municipalities, which could be at financial risk iffurther debt is acquired. The calculation taken alone does not represent thefinancial stability of the municipality. Rather, the financial statements must beinterpreted as a whole.
8. EQUITY IN TANGIBLE CAPITAL ASSETS
Tangible capital assets (Schedule 1)Accumulated amortization (Schedule 1)
2015
$
2014
$
988,758
(291,710)
988,758
(254,023)
697,048 734,735
18
Summer Village of Ghost LakeNotes to Financial Statements
For the Year ended December 31,2015
9. ACCUMULATED SURPLUS
Unrestricted surplus (deficit)Restricted surplus
RESERVES - ALET
RESERVES - AMBULANCE
RESERVES - CAPITAL PUBLIC WORKS
RESERVES - CONTINGENCY
RESERVES - REC & PARKS
RESERVES - REC BOARD
RESERVES - MR 32,000 32,000
RESERVES - FIRE
RESERVES - REC GOODS
RESERVES - PLANNING COMMITTEE
RESERVES-BYLAW
RESERVES - ROAD OPR
RESERVES - LIBRARY
RESERVES MSI INTEREST
RESERVES SHORELINE
Equity in tangible capital assets
2015
$
51,958
2014
$
51,958
5,825
652
5,825
652
140,751
24,823
4,281
6,605
126,671
20,087
4,281
4,660
21,637 21,637
500 500
850 850
5,000 -
221 221
140 140
34 34
- 2,600
697,048 734,735
992,325 1,006,851
10. SEGMENTED DISCLOSURE
The Summer Village of Ghost Lake provides a range of services to its ratepayers.For each reported segment, revenues and expenses represent both amounts thatare directly attributable to the segment and amounts that are allocated on areasonable basis. The accounting policies used in these segments are consistentwith those followed in the preparation of the financial statements as disclosed inNote 1.
19
Summer Village of Ghost LakeNotes to Financial Statements
For the Year ended December 31,2015
11. CONTINGENCIES
The Summer Village of Ghost Lake is a member of the Alberta MunicipalInsurance Exchange (MUNIX). Under the terms of the membership, the SummerVillage of Ghost Lake could become liable for its proportionate share of anyclaim losses in excess of the funds held by the exchange. Any liability incurredwould be accounted for as a current transaction in the year the losses aredetermined.
12. FINANCIAL INSTRUMENTS
The Summer Village's financial instruments consist of cash and temporaryinvestments, receivables, accounts payable, deposit liabilities and accruedliabilities. It is management's opinion that the Summer Village is not exposed tosignificant interest, or currency risk arising from these financial statements.
The Summer Village is subject to credit risk with respect to taxes and otherreceivables. Credit risk arises from the possibility that taxpayers and entities towhich the Summer Village provides services may experience financial difficultand be unable to fulfill their obligations. The large number and diversity oftaxpayers and customers minimize the credit risk.
Unless otherwise noted, the fair value of these financial instruments approximatesfair value.
13. APPROVAL OF FINANCIAL STATEMENTS
Council and Management have approved these financial statements.
14. COMPARATIVE FIGURES AND ROUNDING
Certain of the comparative figures have been restated to facilitate comparison tothe current year's presentation. Rounding due to the use of formulas has alsocaused some totals to differ due to rounding.
20