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Staff Report
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Report To: Audit and Accountability Committee
Date of Meeting: August 3, 2022 Report Number: FSD-031-22
Submitted By: Trevor Pinn, Deputy CAO/Treasurer
Reviewed By: Mary -Anne Dempster, CAO Resolution#:
File Number: By-law Number:
Report Subject: 2021 Audited Financial Statements
Recommendations:
1. That Report FSD-031-22 and any related delegations or communication items, be
received;
2. That the Financial Statements for the Board of Management for Historic Downtown
Bowmanville Business Improvement Area for the year ending December 31, 2021
be approved;
3. That the Financial Statements for the Board of Management for the Newcastle
Central Business District Improvement Area for the year ending December 31, 2021
be approved;
4. That the Financial Statements for the Board of Management for the Orono Central
Business District Improvement Area for the year ending December 31, 2021 be
approved;
5. That the Consolidated Financial Statements for the Municipality of Clarington for the
year ending December 31, 2021 be approved;
6. That the Financial Statements for the Municipality of Clarington Trusts for the year
ending December 31, 2021 be approved;
7. That Staff prepare the Annual Financial Report for the year ending December 31,
2021 for public consumption; and
Municipality of Clarington Page 2
Report FSD-031-22
8. That all interested parties listed in Report FSD-031-21 and any delegations be
advised of Council's decision.
Municipality of Clarington
Report FSD-031-22
Report Overview
Page 3
The Municipality is required to prepare financial statements in compliance with Public Sector
Accounting Standards (PSAS) as established by the Public Sector Accounting Board (PSAB)
annually. The Municipality continues to have a strong financial position and positive
operating results, despite the impacts of COVID-19 during both the 2020 and 2021 fiscal
years.
Following improvements to transparency and understandability last year through changes to
the financial statements (including segmented budget information) and the first Annual
Financial Report; in 2022 additional information including five-year trends for certain financial
information has been included in the Annual Financial Report to provide historical context
and trend the financial statements.
1. Background
1.1 Section 294.1 of the Municipal Act, 2001 requires that a municipality, for each fiscal
year, prepare annual financial statements for the municipality in accordance with
generally accepted accounting principles for local governments as recommended, from
time to time, by the Public Sector Accounting Board of the Chartered Professional
Accountants of Canada.
1.2 The statements included in the attachments to this report have been prepared in
accordance with the current Public Sector Accounting Standards (PSAS) that are in
force. Municipality of Clarington Financial Services Staff continue to monitor changes to
PSAS as they will become effective in the fiscal years 2022 through 2025.
1.3 The Consolidated Financial Statements for the Municipality of Clarington include the
organizations, local boards and committees that are controlled by the Municipality and
form the reporting entity under PSAS. These include:
a. Board of Management for the Historic Downtown Bowmanville Business
Improvement Area
b. Board of Management for the Newcastle Central Business District Improvement
Area
c. Board of Management for the Orono Central Business District Improvement Area
d. Clarington Public Library Board and Clarington Museums and Archives
e. Newcastle Arena Board
Municipality of Clarington
Report FSD-031-22
Newcastle Community Hall Board
g. Solina Hall Board
h. Tyrone Community Hall Board
Clarington Heritage Committee
Bowmanville Santa Clause Parade Committee
k. Orono Cemetery Board
Page 4
1.4 Section 295 of the Act requires the Municipality to publish, within 60 days, the audited
financial statements in a newspaper having general circulation within the municipality
and a notice that the statements and notes would be available at no cost to the taxpayer
upon request. The information may also be provided in a manner that the Treasurer
considers appropriate. As in the past, these statements will be made available on the
Municipality's website and copies may be obtained from Financial Services.
1.5 Continuing a practice started in 2021, Financial Services have drafted an Annual
Financial Report which provides the audited financial statements as well as financial
discussion and analysis. This report is becoming a more common report from larger
municipalities and is similar to reports seen by publicly traded companies. The numbers
in a financial statement only provide a certain amount of information, to be usable to
stakeholders' additional information may be beneficial. In 2022, staff have added five-
year charts to provide a trend analysis to certain financial information.
2. Draft Annual Financial Report
2.1 A growing trend in municipal finance is the preparation of annual financial reports which
provide more information for stakeholders than simply the financial statements. These
documents provide narrative information, charts and other information that is intended to
show the greater picture of the activity of the municipality during the year.
2.2 In 2021 (for the 2020-year end), Financial Services produced the Municipality's annual
financial report which provides additional information including financial discussion and
analysis. The draft 2021 Annual Financial Report is shown in Attachment #1 and has
been slightly changed from last year to include additional graphs and five-year historical
information. Additional information, particularly pre -pandemic, provides context for the
financial operations of the Municipality that may not be seen in a financial statement that
only looks at year -over -year changes.
2.3 The Financial Discussion and Analysis section of the report provides explanation on
variances year -over -year for areas with significant changes. To avoid duplication within
Municipality of Clarington Page 5
Report FSD-031-22
this report please see Attachment #1 for the discussion and analysis of the 2021
financial statements.
2.4 The Annual Financial Report will be provided to Council during the summer, after
ratification of the financial statements and final drafting of the report. The Report will
then be placed on the Municipality's website for public consumption.
3. Financial Statements for the Board of Management for
Historic Downtown Bowmanville Business Improvement Area
3.1 The major change in the Statement of Financial Position of the Bowmanville BIA is a
decrease of $13,470 in the cash and cash equivalents held by the BIA. This
corresponds with the annual deficit of $19,837 during the year.
3.2 The activities of the BIA were impacted by the emergency orders issued by the Province
of Ontario due to COVID-19. In 2021, all in -person events were cancelled up to
November or were modified to a virtual offering.
3.3 The fundraising revenue decreased significantly during the year as a result of the
cancellation of the events normally held by the BIA. Fundraising revenue has been
reduced from a pre -pandemic level of $61,800 to the current level of $3,500. This mainly
relates to major in -person festivals of Maplefest, Bluesberry Festival and Applefest.
3.4 The events and promotion expenses returned to a level similar to the pre -pandemic
level as the BIA increased promotions and events (other than festivals) to assist
businesses in recovery.
3.5 Salaries and wages increased slightly in 2021 as a result of the annualized impact of an
additional member as well as inflation.
3.6 There were no capital projects during the year.
3.7 The BIA continues to have an accumulated surplus of approximately $50,400, which is
higher than the pre -pandemic level and is in part a result of the 2020 annual surplus.
The BIA has a current ratio of approximately 9.4 to 1.0 which shows that it is liquid and
is able to meet their financial obligations.
3.8 As with many organizations, including all of entities in this report, over the past two
years, the notes to the financial statements includes a disclosure on the impacts of
COVID-19. It is anticipated that in the 2022 financial statements this note will be
removed.
Municipality of Clarington Page 6
Report FSD-031-22
4. Financial Statements for the Board of Management for the
Newcastle Central Business District Improvement Area
4.1 Cash and cash equivalents increased during the year as a result of collection of
outstanding receivables and the annual surplus.
4.2 The BIAs revenue was approximately $40,400 higher than in 2020 which is mainly a
result of a grant from the Municipality of Clarington for $16,500 for COVID-19 support
and a transfer of $25,000 from the Municipality of Clarington's reserve fund for the BIA
("west end money") which occurred in 2021 to fund the purchase of Christmas wreaths.
4.3 Expenses are also higher by approximately $26,000 which was for the downtown safety
and decor expenses (which related to the purchase in 2021 of decorations funded by
the "west end money").
4.4 The annual surplus of $29,189 increases the accumulated surplus to approximately
$62,200 which can be utilized in future years to promote and support the BIA.
4.5 The net financial assets of the BIA equal the total accumulated surplus of approximately
$62,200 as there are no non -financial assets (tangible capital assets). The BIA is in a
strong financial position, they limited current debt and significant cash resources in
order to meet those obligations.
5. Financial Statements for the Orono Central Business District
Improvement Area
5.1 The main change in the Orono BIA statement of financial position is a reduction of cash
of approximately $9,600 which is related to the annual deficit of $10,500.
5.2 The BIA saw a reduction of revenue, of approximately $6,400, between 2020 and 2021.
This mainly is a result of reduced grants from others, in 2020 the BIA received some
grants for COVID-19 support. In 2021, the Municipality of Clarington provided $1,500 in
grant support to the BIA. Prior to COVID-19, the BIA had approximately $21,200 in
donation revenue, this revenue was $nil in 2021 as many activities and events were
cancelled.
5.3 The expenses were lower in 2021 as a result of landscaping and decor purchases
during the previous year. In 2020 and 2021, expenses for landscaping/beautification
occurred in part to promote the BIA during the pandemic. Before the pandemic, the
focus of expenses were on advertising and promotion.
5.4 The annual deficit of $10,500 decreased the accumulated surplus of to $12,600. The
BIA still has an accumulated surplus which is sufficient to cover its liabilities. In 2019,
Municipality of Clarington
Report FSD-031-22
Page 7
the accumulated surplus was $36,500 while in 2018 it was $15,800; given the nature
and size of the operations there will be volatility in this number year over year.
6. Financial Statements for the Municipality of Clarington Trust
Funds
6.1 The Trust Funds are not included in the Municipality of Clarington's consolidated
financial statements. The financial reporting follows PSAB and includes all of the trust
funds that the Municipality is responsible for. Most of the funds are related to cemetery
trusts with an additional two bequests which are not cemetery related.
6.2 The Trusts do not have any liabilities and consist predominantly of investments, which
are primarily GICs. The due (to) from the Municipality of Clarington relates to expenses
incurred at the cemetery or funds received by the Municipality which are due to be
transferred to the trust fund.
6.3 During the year $79,417 in care and maintenance receipts were received with an
additional $15,660 of interest earned on the trust fund investments. The cemetery trusts
transferred $21,261 to the cemeteries for care and maintenance of the cemeteries.
7. Consolidated Financial Statements for the Municipality of
Clarington
Administrative
7.1 In 2020, we have added a letter stating management's responsibility for the statements.
This is a requirement for PSAS and in the past was implied through a signature at the
bottom of the financial statements. The current method is more in line with the intent of
the PSAS standard and shows greater transparency on the fact that the financial
statements are indeed the Municipality's and not the responsibility of the auditor.
7.2 The Independent Auditor's Report is in accordance with requirements of Canadian
Auditing Standards (CAS). The report indicates the auditor's opinion on whether the
financial statements and the notes are in accordance with Canadian public sector
accounting standards. The audit opinion is "clean" which indicates that we are materially
compliant with applicable standards.
Statement of Financial Position
7.3 The Statement of Financial Position is the public sector accounting equivalent of a
balance sheet. The statement provides a snapshot, on December 31, 2021, of the
assets, liabilities and accumulated surplus (an indicator of service capacity) specifically
on that day.
Municipality of Clarington
Report FSD-031-22
Page 8
7.4 Year -over -year variances and five-year trends are provided in Attachment #1 — Annual
Financial Report. This year we have included graphical representation of balances over
the past five years on key line items.
7.5 Net Financial Assets (the difference between financial assets and liabilities) increased
by approximately $17.9 million in 2021. The financial asset to liability ration of 1.9:1.0 is
an improvement over the prior year and shows the Municipality is in a position to fulfill
it's financial obligations. The reserve and reserve fund balances of $57.6 million are
seven times higher than debenture debt, indicating that there are sufficient resources to
meet future debt obligations.
7.6 A detailed breakdown of accumulated surplus is presented in Note 19 "Accumulated
Surplus" of the Consolidated Financial Statements. The term "accumulated surplus"
does not mean and cannot be implied to mean that there are "cash or funds" available
for spending. The vast majority of the value in accumulated surplus represents non-
financial assets and reflects the Municipality's investment in the required infrastructure
to deliver the programs and services that stakeholders expect.
Statement of Operations
7.7 The Statement of Operations is the public sector accounting equivalent of an income
statement in the private sector. The Statement of Operations provides a summary of
revenue and expenses for the year with the annual surplus representing the difference
between the cost of providing the Municipality's services and the revenues recognized
during the year.
7.8 In accordance with PSAS, the Municipality uses the accrual basis of accounting rather
than the cash -basis. Revenue is recognized when it is earned and expenses are
recognized when they are incurred, as opposed to when funds transfer.
7.9 The Statement of Operations, as required by PSAS, lists revenues based on like
revenue streams (e.g. taxation, user fees, grants) and expenses based on functional
segmentation. The functional segmentation for expenses follows the Province of
Ontario's Financial Information Return (FIR) segmentation on service lines.
7.10 Information on the segments' expenses by accounting object (e.g. wages, materials,
services) is included in Schedule 2. There are two pages of Schedule 2, one being
specific for 2021 and the following page being the prior year's results.
7.11 Schedule 3 shows the budgeted breakdown by segment for each accounting object.
This is not a required schedule, however it is hoped that this additional information
provides users of the statement with more usable and relevant information.
Municipality of Clarington
Report FSD-031-22
Page 9
7.12 Property taxation includes the Municipality's portion only, funds which are collected on
behalf of the Region of Durham or the Province of Ontario (for education purposes) are
not shown as part of the Statement of Operations; however there is note disclosure on
the funds which have been collected and remitted on behalf of the other governments in
the notes to the financial statements.
7.13 A significant increase from year to year is the recognition of deferred revenue. Most of
this deferred revenue relates to development charges and they are recognized when the
asset is recognized. Deferred revenue may also be recognized when grant obligations
are met.
7.14 While the Municipality took steps to reduce expenses in 2021 due to COVID-19, there
are fixed costs which cannot be reduced. Regular repairs and maintenance of buildings,
including those closed to the public, must occur in order to ensure the integrity of the
building and the systems within it. Amortization expense is a non -cash expense which
allocates the capital cost of assets across the useful life of the asset, it is not impacted
by COVID-19 and was recognized in 2021.
7.15 Overall, the expenses for the Municipality were below the 2021 budget and 2020
actuals. The savings contribute to the surplus recognized for the year. During the year,
the Municipality also received funding from the Province of Ontario and the Government
of Canada's Safe Restart Program, these funds have been recognized as revenue in
2021. It should be noted that the surplus and budget shown on the statements are in
accordance with PSAB and are shown on the same basis that the Municipality budgets
annually (which uses a modified cash -basis).
Statement of Changes in Net Financial Assets
7.16 The purpose of the Statement of Change in Net Financial Assets is to provide financial
statement users additional information on the Municipality's financial activities during the
year.
7.17 The statement, similarly to the statement of cash flows, starts with the annual surplus
and backs out non -financial activities such as amortization, accounting gains/losses,
and the purchase and sale of assets.
7.18 The main variance between the 2021 and 2020 relates to a significant difference in the
assets under construction transferred to tangible capital asset and lower asset disposals
in 2021. A review of the Municipality's road inventory in 2020 resulted in adjustments to
the capital cost of road inventory.
Statement of Cash Flows
Municipality of Clarington
Report FSD-031-22
Page 10
7.19 The statement of cash flows explains how organization financed its activities and met its
cash obligations. As is common with public sector entities, the Municipality uses the
indirect method of cash flow statements, which takes the annual surplus/deficit and
adjusts for non -cash transactions as well as the implied cash impact through changes in
the statement of financial position.
7.20 The cash position of the Municipality decreased during the year from $79.0 million in
cash to $77.7 million. During the year operating activities contributed to an increase of
$43.3 million, this includes the receipt of receivables as well as cash (development
charges) that are restricted to be used in future years.
7.21 Capital activities represent the investment the Municipality has made in its tangible
capital assets that are utilized in the delivery of services to stakeholders. The
Municipality invested $16.7 million in cash outlays in 2021.
7.22 The Municipality investment levels increased significantly during 2021, as funds which
had been received in 2020 as cash were transferred to various investment vehicles.
Dividends from our investment in Elexicon were received during the year.
7.23 Financing activities during the year included a repayment of $1.9 million in the principal
of long-term debenture debt. There were no new issuances of debenture debt in 2021.
8. Concurrence
Not Applicable.
9. Conclusion
It is respectfully recommended that the financial statements for the Municipality and its
components be approved, and that Staff be directed to finalize the Annual Financial
Report with the approved financial statements.
Staff Contact: Michelle Pick, CPA, CGA, Accounting Services Manager/Deputy Treasurer,
905-623-3379 ext.2605 or mpick@clarington.net.
Attachments:
Attachment 1 — Draft Financial Statements for the Board of Management for Historic
Downtown Bowmanville Business Improvement Area for the year ending December 31, 2021
Attachment 2 — Draft Financial Statements for the Board of Management for the Newcastle
Central Business District Improvement Area for the year ending December 31, 2021
Municipality of Clarington
Report FSD-031-22
Page 11
Attachment 3 — Draft Financial Statements for the Board of Management for the Orono Central
Business District Improvement Area for the year ending December 31, 2021
Attachment 4 — Draft Consolidated Financial Statements for the Municipality of Clarington for
the year ending December 31, 2021
Attachment 5 — Draft Financial Statements for the Municipality of Clarington Trusts for the year
ending December 31, 2021
Interested Parties:
The following interested parties will be notified of Council's decision:
ti��]:�Ti17
• Ministry of Municipal Affairs and Housing
11 �
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Coordinator at (905) 623-3379 ext. 2131.
Financial statements of
The Corporation of the
Municipality of Clarington
Board of Management for
Historic Downtown Bowmanville
Business Improvement Area
December 31, 2021
The Corporation of the Municipality of Clarington
Board of Management for the Historic Downtown
Bowmanville Business District Improvement �
Area
Notes to the financial statements
December 31, 2021
Table of contents
Independent Auditor's Report....................................................................................... 1-2
Statement of financial position........................................................................................ 3
Statementof operations................................................................................................. 4
Statement of change in net financial assets................................................................... 5
�,i1
Statement of cash flows ........ .�?.................................................................. 6
Notes to the financial statements................................................................................. 7-8
%7
Independent Auditor's Report
To the Members of the Corporation of the Municipality of Clarington Board of Management for Historic
Downtown Bowmanville Business Improvement Area, Members of Council, Inhabitants and Ratepayers of
the Corporation of the Municipality of Clarington
Qualified Opinion
We have audited the accompanying financial statements of the Historic Downtown Bowmanville Business
Improvement Area of the Corporation of the Municipality of Clarington (the Entity), which comprise the
statement of financial position as at December 31, 2021, and the statements of operations, changes in
net financial assets and cash flows for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies.
In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion
section of our report, the accompanying financial statements present fairly, in all material respects, the
financial position of the Entity as at December 31, 2021, and its results of operations and its cash flows
for the year then ended in accordance with Canadian public sector accounting standards.
Basis for Qualified Opinion
The Entity derives revenue from fundraising activities the completeness of which is not susceptible to
satisfactory audit verification. Accordingly, verification of these revenues was limited to the amounts
recorded in the records of the Entity. Therefore, we were not able to determine whether any adjustments
might be necessary to event and donation revenue, annual surplus, and cash flows from operations for
the years ended December 31, 2021 and 2020, net financial assets as at December 31, 2021 and 2020,
and accumulated surplus as at January 1 and December 31 for both the 2021 and 2020 years. Our audit
opinion on the financial statements for the year ended December 31, 2020 was modified accordingly
because of the possible effects of this limitation in scope.
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit
of the Financial Statements section of our report. We are independent of the Entity in accordance with
the ethical requirements that are relevant to our audit of the financial statements in Canada, and we
have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified
audit opinion.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of these 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 financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Entity's ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Entity or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Entity's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with Canadian generally accepted auditing standards will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Entity's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Entity's ability to continue as a going
Cconcern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor's report to the related disclosures in the financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor's report. However, future events or conditions may cause the Entity
to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
Chartered Professional Accountants, Licensed Public Accountants
Lindsay, Ontario
June 15, 2022
The Corporation of the Municipality of Clarington
Board of Management for Historic Downtown
Bowmanville Business Improvement Area
Statement of Financial Position
as at December 31, 2021
Financial assets
Cash and cash equivalents
Accounts receivable
HST receivable
2021 2020
00 51,262 64,732
5,141 5,529
Total financial assets 56,403 70,261
Liabilities (7y
Accounts payable 5,997 18
Total liabilities 5,997 18
Net financial assets
50,406 70,243
Accumulated surplus (deficit) 50,406 70,243
Impact of COVID-19 (Note 2)
The accompanying notes are an integral part of these financial statements.
Page 3
The Corporation of the Municipality of Clarington
Board of Management for Historic Downtown ,
Bowmanville Business Improvement Area `
Statement of Operations
as at December 31, 2021 \!6
Budget
2021
2020
Revenues
Taxation - Municipality of Clarington
Grant - Municipality of Clarington
167,439
167,439
13,948
167,439
-
Interest
198
666
Fundraising
3,545
1,570
Total revenues
167,439
185,130
169,675
Expenses
Administration ♦
33,000
4,743
3,481
Events and promotion
72,951
114,305
50,278
Salaries and wages
78,200
61,400
56,750
Streetscape
27,700
24,519
17,065
Capital works
20,300
-
-
Total expenses
232,151
204,967
127,574
Annual surplus (deficit)
(64,712)
(19,837)
42,101
Accumulated surplus, beginning of year
70,243
70,243
28,142
Accumulated surplus (deficit), end of year
5,531
50,406
70,243
Impact of COVID-19 (Note 2)
The accompanying notes are an integral part of these financial statements.
Page 4
The Corporation of the Municipality of Clarington
Board of Management for Historic Downtown
Bowmanville Business Improvement Area
Statement of Change in Net Financial Assets
as at December 31 2021 ! +`
1► 9
Budget 2 1 2020
Annual surplus (deficit)
(64,712)
(19,837)
42,101
Change in prepaid expenses
-
-
-
Change in net financial assets
(64,712)
(19,837)
42,101
Net financial assets, beginning of year
70,243
70,243
28,142
Net financial assets (liabilities), end of yea
5,531
50,406
70,243
4j
t
The accompanying notes are an integral part of these financial statements.
Page 5
The Corporation of the Municipality of Clarington
Board of Management for Historic Downtown
Bowmanville Business Improvement Area
Statement of Cash Flows
for the year ended December 31, 2021
2021 2020
Operating activitieskosov Annual surplus (19,837) 42,101
Changes in non -cash operating items
Decrease (increase) due from Government of Canada 388 2,721
Increase (decrease) in accounts payable and accrued IiabilitiE 5,979 (4,574)
(13,470) 40,248
Net increase in cash (13,470) 40,248
Cash, beginning of year 64,732 24,484
Cash, end of year 51,262 64,732
The accompanying notes are an integral part of these financial statements.
Page 6
The Corporation of the Municipality of Clarington
Board of Management for the Historic Downtown
Bowmanville Business District Improvement, N
Area
Notes to the financial statements
December 31, 2021
The Corporation of the Municipality of Clarington Board of Management for Historic
Downtown Bowmanville Business Improvement Area is a Municipal Local Board (the
"Board") in the Province of Ontario, Canada. It conducts its operations guided by the
provisions of provincial statutes such as the Municipal Act and related legislation.
1. Significant accounting policies
The financial statements of the Board are the representations of management
prepared in accordance with Canadian public sector accounting standards
("PSAS"). r-1
The focus of the financial statements is on the financial position of the Board and
the changes thereto. The Statement of Financial Position includes the assets
and liabilities of the Board.
Financial assets are those assets which could provide resources to discharge
existing liabilities or finance future operations.
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 ordinary course of operations.
Accumulated surplus represents the difference between assets and liabilities of
the Board. This provides information about the Board's overall future revenue
requirements and its ability to finance operations and meet its obligations.
a) Revenue recognition
Taxation revenue is recorded when earned and is based on a special
assessment. Other revenues are recorded in the period in which transactions
or events occurred that gave rise to the revenues.
b) Use of estimates
The preparation of financial statements in conformity with PSAS 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
revenue and expenses during the year. Actual results could differ from those
estimates.
c) Cash and cash equivalents
Cash and cash equivalents are made up of cash held in financial institutions
as well as temporary investments with maturities of 90 days or less.
Page 7
The Corporation of the Municipality of Clarington
Board of Management for the Historic Downtown
Bowmanville Business District Improvement
Area A
Notes to the financial statements
December 31, 2021
2. Impact of COVID-19
In 2021, the COVID-19 pandemic continued to severely impact many local
economies around the globe. In many countries, including Canada, organizations
and businesses were forced to cease or limit operations for long or indefinite
periods of time. Measures taken to contain the spread of the virus, included
travel bans, quarantines, social distancing, and closures of non -essential
services have triggered significant disruptions to organizations worldwide,
resulting in an economic slowdown. Global stock markets have also experienced
great volatility and a significant weakening. Governments and central banks have
responded with monetary and fiscal interventions to stabilize economic
conditions.
The COVID-19 pandemic had significant impacts on the activities of the
Bowmanville BIA. All in -person community events were cancelled up to
November of 2021 or modified to be a virtual offering. Moonlight magic and
Christmas events were held. The Bowmanville BIA continued to focus on the
marketing, decor and on-line promotion of the BIA area.
Although the Bowmanville BIA cannot estimate the length or gravity of the impact
of the COVID-19 outbreak at this time, if the pandemic continues, it may have a
material adverse effect on the Bowmanville BIA's results of future operations,
financial position, and liquidity in the fiscal year 2022.
Page 8
If this information is required in an alternate format, please contact the Accessibility
Coordinator at (905) 623-3379 ext. 2131
ZA
Financial statements of
The Corporation of the
Municipality of Clarington
Board of Management for the
Newcastle Central Business
District Improvement Area
December 31, 2021
The Corporation of the Municipality of Clarington
Board of Management for the Newcastle Central
Business District Improvement Area
Notes to the financial statements
December 31, 2021 17.
Table of contents
*1
ti *+*40
Independent Auditor's Report....................................................................................... 1-2
Statement of financial position........................................................................................ 3
Statementof operations................................................................................................. 4
Statement of change in net financial assets................................................................... 5
Statement of cash flows.................................................................................. 6
Notes to the financial statements................................................................................. 7-8
.o�
Independent Auditor's Report
To the Members of the Corporation of the Municipality of Clarington Board of Management for the
Newcastle Central Business District Improvement Area, Members of Council, Inhabitants and Ratepayers
of the Municipality of Clarington
r Qualified Opinion Q
We have audited the accompanying financial statements of the Newcastle Central Business District
Improvement Area of the Corporation of the Municipality of Clarington (the Entity), which comprise the
statement of financial position as at December 31, 2021, and the statements of operations, changes in
net financial assets and cash flows for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies.
In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion
section of our report, the accompanying financial statements present fairly, in all material respects, the
financial position of the Entity as at December 31, 2021, and its results of operations and its cash flows
for the year then ended in accordance with Canadian public sector accounting standards.
Basis for Qualified Opinion
The Entity derives revenue from fundraising activities the completeness of which is not susceptible to
satisfactory audit verification. Accordingly, verification of these revenues was limited to the amounts
recorded in the records of the Entity. Therefore, we were not able to determine whether any adjustments
might be necessary to event and donation revenue, annual surplus, and cash flows from operations for
the years ended December 31, 2021 and 2020, net financial assets as at December 31, 2021 and 2020,
and accumulated surplus as at January 1 and December 31 for both the 2021 and 2020 years. Our audit
opinion on the financial statements for the year ended December 31, 2020 was modified accordingly
because of the possible effects of this limitation in scope.
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit
of the Financial Statements section of our report. We are independent of the Entity in accordance with
the ethical requirements that are relevant to our audit of the financial statements in Canada, and we
have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified
audit opinion.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of these 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 financial statements that are free
from material misstatement, whether due to fraud or error.
*k
In preparing the financial statements, management is responsible for assessing the Entity's ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Entity or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Entity's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with Canadian generally accepted auditing standards will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Entity's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Entity's ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
' our auditor's report to the related disclosures in the financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor's report. However, future events or conditions may cause the Entity
to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
Chartered Professional Accountants, Licensed Public Accountants
Lindsay, Ontario
June 15, 2022
The Corporation of the Municipality of Claringtor
Board of Management for the Newcastle Central
Business District Improvement Area
Statement of financial position
as at December 31, 2021
2021 2020
Financial assets
Cash 63,226 33,775
Accounts receivable 70 1,202
Total financial assets 63,296 34,977
Liabilities
Accounts payable 1,130 -
Deferred revenue - 2,000
Total liabilities 1,130 2,000
Net financial assets (liabilities) 62,166 32,977
Accumulated surplus (deficit) 62,166 32,977
The accompanying notes are an integral part of these financial statements.
Page 3
The Corporation of the Municipality of Clarington
Board of Management for the Newcastle Central
Business District Improvement Area ��
Statement of operations
year ended December 31, 2021
2021 2020
Budget Actual Actual
Revenues
Taxation - Municipality of Clarington 40,000 40,000 40,000
Grant - Municipality of Clarington 16,548
Grant - Government of Canada
Fundraising 70 1,202
Transfer from Municipality of Clarington 25,000
Miscellaneous
Total revenues 40,000 81,618 41,202
Expenses
Administration
2,000
4,689
1,461
Advertising
10,000
4,996
10,768
Events
5,000
9,091
1,434
Downtown safety and decor
23,000
33,653
12,815
Total expenses
40,000
52,429
26,478
Annual surplus (deficit) - 29,189 14,724
Accumulated surplus, beginning of year 32,977 32,977 18,253
Accumulated surplus, end of year 32,977 62,166 32,977
o�
The accompanying notes are an integral part of these financial statements.
Page 4
11 �
The Corporation of the Municipality of Clarington '0
Board of Management for Newcastle Central
Business District Improvement Area
Statement of change in net financial assets
as at December 31, 2021 }
+f 90
Annual surplus (deficit)
Change in net financial assets
Net financial assets, beginning of year
Budget 2021 2020
$ r $ $
29,189 14,724
- 29,189 14,724
32,977 32,977 18,253
Net financial assets (liabilities), end of year 32,977 62,166 32,977
.a
r
The accompanying notes are an inegral part of these financial statements.
Page 5
The Corporation of the Municipality of Clarington
Board of Management for the Newcastle Central
Business District Improvement Area
Statement of cash flows
for the year ended December 31, 2021
4Cq1
2021
2020
$
$
Operating activities
Annual surplus
29,189
14,724
Non cash items
Amortization of tangible capital assets ^
-
-
Changes in items
non -cash operating
Decrease (increase) in accounts receivable
1,132
6,579
Increase (decrease) in accounts payable and accrued liabilities
1,130
(2,562)
Increase (decrease) in deferred revenue
(2,000)
2,000
29,451
20,741
Capital activity
Acqusition of tangible capital assets
-
-
Net increase in cash
29,451
20,741
Cash, beginning of year
33,775
13,034
Cash, end of year
63,226
33,775
The accompanying notes are an integral part of these financial statements.
Page 6
The Corporation of the Municipality of Clarington ;P14*
Board of Manaaement for the Newcastle Centrals i
Business District Improvement Area
Notes to the financial statements - �1
December 31, 2021
The Corporation of the Municipality of Clarington Board of Management for the
Newcastle Central Business District Improvement Area is a Municipal Local Board in the
Province of Ontario, Canada. It conducts its operations guided by the provisions of
provincial statutes such as the Municipal Act and related legislation.
1. Significant accounting policies , I I
The financial statements of the Board are the representations of management
prepared in accordance with Canadian public sector accounting standards
("PSAS").
The focus of the financial statements is on the financial position of the Board and
the changes thereto. The Statement of Financial Position includes the assets and
liabilities of the Board.
Financial assets are those assets which could provide resources to discharge
existing liabilities or finance future operations.
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 ordinary course of operations.
Accumulated surplus represents the difference between assets and liabilities of
the Board. This provides information about the Board's overall future revenue
requirements and its ability to finance operations and meet its obligations.
a) Revenue recognition
Taxation revenue is recorded when earned and is based on a special
assessment. Other revenues are recorded in the period in which transactions
or events occurred that gave rise to the revenues.
b) Use of estimates
The preparation of financial statements in conformity with Canadian 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 revenue and expenses during the
year. Actual results could differ from those estimates.
c) Cash and cash equivalents
Cash and cash equivalents are made up of cash held in financial institutions as
well as temporary investments with maturities of 90 days or less.
Page 7
The Corporation of the Municipality of Clarington ;p"*
Board of Manaaement for the Newcastle Centrals i
Business District Improvement Area
Notes to the financial statements - �1
December 31, 2021
2. Impact of COVID-19
In 2021, the COVID-19 pandemic continued to severely impact many local
economies around the globe. In many countries, including Canada, organizations
and businesses were forced to cease or limit operations for long or indefinite
periods of time. Measures taken to contain the spread of the virus, included travel
bans, quarantines, social distancing, and closures of non -essential services have
triggered significant disruptions to organizations worldwide, resulting in an
economic slowdown. Global stock markets have also experienced great volatility
and a significant weakening. Governments and central banks have responded with
monetary and fiscal interventions to stabilize economic conditions.
The COVID-19 pandemic had significant impacts on the activities of the Newcastle
BIA. Most community events had to be cancelled or modified to be a virtual
offering. The Newcastle BIA continued to focus on the marketing, decor and on-
line promotion of the BIA area.
Although the Newcastle BIA cannot estimate the length or gravity of the impact of
the COVID-19 outbreak at this time, if the pandemic continues, it may have a
material adverse effect on the Newcastle BIA's results of future operations,
financial position, and liquidity in the fiscal year 2022.
Page 8
If this information is required in an alternate format, please contact the Accessibility
Coordinator at (905) 623-3379 ext. 2131.
Financial statements of
The Corporation of the
Municipality of Clarington
Board of Management for the
Orono Central Business
District Improvement Area
December 31, 2021
The Corporation of the Municipality of Clarington,J
Board of Management for the Orono Central
Business District Improvement Area �
December 31, 2021
Table of contents
Independent Auditor's Report................................................................................. 1-2
Statement of financial position........................................................................................ 3
Statementof operations................................................................................................. 4
v
Statement of change in net financial assets................................................................... 5
Statement of cash flows................................................................................. 6
Notes to the financial statements................................................................................. 7-8
%7
Independent Auditor's Report
ASO
To the Members of the Corporation of the Municipality of Clarington Board of Management for Orono
Central Business District Improvement Area, Members of Council, Inhabitants and Ratepayers of the
Municipality of Clarington
v
Qualified Opinion
We have audited the accompanying financial statements of the Orono Central Business District
Improvement Area of the Corporation of the Municipality of Clarington (the Entity), which comprise the
statement of financial position as at December 31, 2021, and the statements of operations, changes in
net financial assets and cash flows for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies.
In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion
section of our report, the accompanying financial statements present fairly, in all material respects, the
financial position of the Entity as at December 31, 2021, and its results of operations and its cash flows
for the year then ended in accordance with Canadian public sector accounting standards.
Basis for Qualified Opinion
The Entity derives revenue from fundraising activities the completeness of which is not susceptible to
satisfactory audit verification. Accordingly, verification of these revenues was limited to the amounts
recorded in the records of the Entity. Therefore, we were not able to determine whether any adjustments
might be necessary to event and donation revenue, annual surplus, and cash flows from operations for
the years ended December 31, 2021 and 2020, net financial assets as at December 31, 2021 and 2020,
and accumulated surplus as at January 1 and December 31 for both the 2021 and 2020 years. Our audit
opinion on the financial statements for the year ended December 31, 2020 was modified accordingly
because of the possible effects of this limitation in scope.
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit
of the Financial Statements section of our report. We are independent of the Entity in accordance with
the ethical requirements that are relevant to our audit of the financial statements in Canada, and we
have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified
audit opinion.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of these 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 financial statements that are free
from material misstatement, whether due to fraud or error.
*k
In preparing the financial statements, management is responsible for assessing the Entity's ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Entity or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Entity's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with Canadian generally accepted auditing standards will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Entity's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Entity's ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
Cour auditor's report to the related disclosures in the financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor's report. However, future events or conditions may cause the Entity
to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
Chartered Professional Accountants, Licensed Public Accountants
Lindsay, Ontario
June 15, 2022
The Corporation of the Municipality of Clarington
Board of Management for the Orono Central
Business District Improvement Area
Statement of Financial Position
as at December 31, 2021
1►
2021 2020
Financial assets
Cash and cash equivalents 13,601 23,202
Accounts receivable - -
Total financial assets 13,601 23,202
Liabilities V
Accounts payable 964 80
Total liabilities 964 80
Net financial assets 12,637 23,122
Accumulated surplus (deficit)
12,637 23,122
The accompanying notes are an integral part of these financial statements.
Page 3
The Corporation of the Municipality of Claringl
Board of Management for the Orono Central
Ua "VaS iS I Lv mprovemen I Va ,��
Statement of Operations
year ended December 31, 2021
Budget 2021" 2020
Revenues
Taxation - Municipality of Clarington (Note 1) 6,000 6,000 6,000
Grants - Municipality of Clarington - 1,504 -
Grants - Other - 3,670 10,830
Donations/fundraising/miscellaneous 15,500 - 769
Total revenues 21,500 11,174 17,599
Expenses
Advertising and promotion
16,745
1,601
5,440
Landscaping
11,500
18,531
24,569
Miscellaneous
1,400
1,527
962
Total expenses
29,645
21,659
30,971
Annual surplus (deficit)
(8,145)
(10,485)
(13,372)
Accumulated surplus, beginning of year
23,122
23,122
36,494
Accumulated surplus, end of year
14,977
12,637
23,122
The accompanying notes are an integral part of these financial statements.
Page 4
11 �
The Corporation of the Municipality of Clarington '0
Board of Management for Orono Central
Business District Improvement Area quo
Statement of Change in Net Financial Assets
as at December 31, 2021 D1
Budget 2021 2020
Annual surplus (deficit) (8,145) (10,485) (13,372)
Net financial assets, beginning of year 23,122 23,122 36,494
Net financial assets (liabilities), end of year 14,977 12,637 23,122
The accompanying notes are an integral part of these financial statements.
Page 5
The Corporation of the Municipality of Clarington
Board of Management for the Orono Central `O
Business District Improvement Area �
Statement of Cash Flows
year ended December 31, 2021
Operating activities
Annual surplus
Non cash items
Amortization of tangible capital assets
Changes in non -cash operating items
VN7
2021 2020
(10,485) (13,372)
Decrease (increase) in accounts receivable - 401
Increase (decrease) in accounts payable and accrued liabilities 884 (328)
(9,601) (13,299)
Capital activity
Acqusition of tangible capital assets - -
Net increase in cash (9,601) (13,299)
Cash, beginning of year 23,202 36,501
Cash, end of year 13,601 23,202
The accompanying notes are an integral part of these financial statements.
Page 6
The Corporation of the Municipality of Clarington
Board of Management for the Orono Central 11
Business District Improvement Area
Notes to the financial statements -
December 31, 2021
The Corporation of the Municipality of Clarington Board of Management for the Orono
Central Business District Improvement Area is a Municipal Local Board in the Province
of Ontario, Canada. It conducts its operations guided by the provisions of provincial
statutes such as the Municipal Act and related legislation.
1. Significant accounting policies Y C
The financial statements of the Board are the representations of management
prepared in accordance with Canadian public sector accounting standards
("PSAS").
The focus of the financial statements is on the financial position of the Board and
the changes thereto. The Statement of Financial Position includes the assets
and liabilities of the Board. - A� V
Financial assets are those assets which could provide resources to discharge
existing liabilities or finance future operations.
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 ordinary course of operations.
Accumulated surplus represents the difference between assets and liabilities of
the Board. This provides information about the Board's overall future revenue
requirements and its ability to finance operations and meet its obligations.
a) Revenue recognition
Taxation revenue is recorded when earned and is based on a special
assessment. Other revenues are recorded in the period in which transactions
or events occurred that gave rise to the revenues.
b) Use of estimates
The preparation of financial statements in conformity with PSAS 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
revenue and expenses during the year. Actual results could differ from those
estimates.
c) Cash and cash equivalents
Cash and cash equivalents are made up of cash held in financial institutions as
well as temporary investments with maturities of 90 days or less.
Page 7
The Corporation of the Municipality of Clarington
Board of Management for the Orono Central
Business District Improvement Area
Notes to the financial statements - +^
December 31, 2021
2. Impact of COVID-19
In 2021, the COVID-19 pandemic continued to severely impact many local
economies around the globe. In many countries, including Canada, organizations
and businesses were forced to cease or limit operations for long or indefinite
periods of time. Measures taken to contain the spread of the virus, included
travel bans, quarantines, social distancing, and closures of non -essential
services have triggered significant disruptions to organizations worldwide,
resulting in an economic slowdown. Global stock markets have also experienced
great volatility and a significant weakening. Governments and central banks have
responded with monetary and fiscal interventions to stabilize economic
conditions.
The COVID-19 pandemic had significant impacts on the activities of the Orono
BIA. All in -person community events were cancelled for 2021 or modified to be a
virtual offering. The Orono BIA continued to focus on marketing, decor and on-
line promotion of the BIA area.
Although the Orono BIA cannot estimate the length or gravity of the impact of the
COVID-19 outbreak at this time, if the pandemic continues, it may have a
material adverse effect on the Orono BIA's results of future operations, financial
position, and liquidity in the fiscal year 2022.
Page 8
If this information is required in an alternate format, please contact the Accessibility Co-ordinator at
905-623-3379 ext. 2131
e)
+*w
The Corporation of the Municipality of Clarington
AL141
Consolidated Financial Statements
December 31, 2021 llw�
The Corporation of the Municipality of Clarington
December 31, 2021
Table of Contents
Consolidated Financial Statements
*0416C
+ 1&k N
**4,0
Management's Responsiblity for the Consolidated Finanacial Statements 1
Independent Auditor's Report 2-3
Consolidated Statement of Financial Po,*i 4
1
Consolidated Statement of Operations 5
Consolidated Statement of Change in Net Financial Assets 6
Consolidated Statement of Cash Flows 7
Notes to the Consolidated Financial Statements 8 - 29
Consolidated Schedule of Tangible Capital Assets - Schedule 1 30 - 31
Consolidated Schedule of Segmented Information - Actual - Schedule 2 32 - 33
Consolidated Schedule of Segmented Information - Budget - Schedule 3 34 - 35
os.
11 �
0
The Corporation of the Municipality of Clarington 0
December 31, 2021
40
Management's Responsibility for the Consolidated Financial Statements
The accompanying consolidated financial statements of the Corporation of the
Municipality of Clarington are the responsibility of the Municipality's management and
have been prepared in accordance with Canadian public sector accounting standards.
The preparation of the financial statements necessarily involves the use of estimates
based on management's judgment, particularly when transactions affecting the current
accounting period cannot be finalized with certainty until future periods.
The Corporation maintains a system of internal controls designed to provide reasonable
assurance that the financial information is relevant, reliable, and accurate, that
transactions are properly authorized, and the Corporation's assets are properly
accounted for and adequately safeguarded.
The financial statements have been examined by BDO Canada LLP, Chartered
Professional Accountants, the external auditors for the Corporation. The responsibility
of the external auditor is to express an opinion on whether the financial statements are
fairly presented, in all material respects, in accordance with Canadian public sector
accounting standards.
f
Council, through the Audit and Accountability Committee, is responsible for ensuring
that management fulfills its responsibility for financial reporting and internal control. The
Audit and Accountability Committee meets periodically with management, as well as the
external auditors to satisfy itself that each party is properly discharging its
responsibilities with respect to internal controls and financial reporting.
The Audit and Accountability Committee meets with management and the external
auditor to review the consolidated financial statements and discuss any significant
financial reporting or internal control matters prior to their approval of the consolidated
financial statements.
Trevor Pinn, CPA, CA
Deputy CAO / Treasurer
August 3, 2022
Michelle Pick, CPA, CGA
Accounting Services Manager / Deputy Treasurer
August 3, 2022
Independent Auditgr' r�
V`
To the Members of Council of the Corporation of the Municipality of Clarington
Opinion
We have audited the consolidated financial statements of the Corporation of the Municipality of
Clarington and its subsidiaries (the Group), which comprise the consolidated statement of financial
position as at December 31, 2021, and the consolidated statement of operations, the consolidated
statement of change in net assets and the consolidated statement of cash flows for the year then ended,
and notes to the consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position of the Group as at December 31, 2021, and its consolidated
results of operations, its consolidated change in net financial assets, and its consolidated cash flows for
the year then ended in accordance with Canadian public sector accounting standards.
Basis for Opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit
of the Consolidated Financial Statements section of our report. We are independent of the Group in
accordance with the ethical requirements that are relevant to our audit of the consolidated financial
statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial
State ke
nt esponsible for the preparation and fair presentation of the consolidated financial
statements in accordance with Canadian public sector accounting standards, and for such internal control
s management determines is necessary to enable the preparation of consolidated financial statements
that are free from material misstatement, whether due to fraud or error.
preparing the consolidated financial statements, management is responsible for assessing the Group's
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless management either intends to liquidate the Group or
to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group's financial reporting process.
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's report that includes our opinion. Reasonable assurance is a high level of assurance,but is not
a guarantee that an audit conducted in accordance with Canadian generally accepted auditing
standards will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these consolidated
financial statements.
As part of an audit in accordance with Canadian generally acceptecL auditing standards, we exercise
professional judgment and maintain professional skepticism thrYou out the audit. We also:
• Identify and assess the risks of material misstatement
consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group's ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor's report to the related disclosures in the consolidated financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor's report. However, future
or conditions may cause the Group to cease to continue as a going concern.•(events
Evaluate the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements
represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the group
audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
Chartered Professional Accountants, Licensed Public Accountants
Lindsay, Ontario
August 3, 2022
The Corporation of the Municipality of Clarington
Consolidated Statement of Financial Position
As at December 31, 2021
Financial assets
Cash and cash equivalents
Investments (Note 4)
Accounts receivable
Taxes receivable (Note 5)
Inventories for resale
Inventory - surplus land
Promissory notes receivable (Note 6)
Investment in Elexicon Corporation (Note 7)
Total financial assets
Liabilities \
Accounts payable and accrued liabilities
Employee future benefits liabilities (Note 8)
Debenture debt (Note 10)
Deferred revenue - general
o�
2021 2020
$ 77,658,903 $ 79,019,522
e
*No
96,426,970
7,838,504
8,785,220
29,707
146,349
8,321,000
19,145,126
69,280,598
9,090,098
8,538,141
30,206
221,349
8,321,000
18,580,998
218.351.779 193.081.912
9,298,615
11,486,061
9,542,139
9,063,957
7,686,715
9,545,557
17,445,864
14,447,534
Deferred revenue - obligatory reserve funds (Note 12)
69,404,094
61,435,647
Total liabilities
113,377,427
105,978,756
Net financial assets
104,974,352
87,103,156
Non -financial assets
Investment in tangible capital assets (Note 18) (Schedule 1)
461,278,530
464,092,872
Prepaid expenses
908,604
972,271
Inventory supplies
582,214
462,308
Total non -financial assets 462,769,348 465,527,451
Accumulated surplus (Note 19) $567,743,700 $552,630,607
Contingencies (Note 14), contractual commitments (Note 15) and Impact of COVID-19 (Note 23)
The accompanying notes are an integral part of these consolidated financial statements.
El
The Corporation of the Municipality of Clarington
Consolidated Statement of Operations
For the year ended December 31, 2021
2021 2021 2020
Budget
Actual
Actual
(Note 21)
Revenues
Taxation and user charges
Property taxation $
66,615,061
$ 66,928,003
$ 64,336,736
Taxation from other governments
4,681,820
4,683,341
4,638,683
User charges
9,438,080
'1 9,608,832
10,394,003
Grants
Government of Canada
697,000
367,458
1,049,371
Province of Ontario
1,037,481
3,081,368
2,383,243
Other
Deferred revenue earned
13,730,133
12,296,143
6,866,016
Investment income
710,038
2,629,395
2,183,593
Penalty and interest on taxes
1,400,000
1,582,534
1,269,120
Fines
318,125
312,578
368,411
Donations and contribution from others
21,700
1,566,684
2,120,311
Elexicon Corporation
Equity share of net income
-
1,617,475
1,063,520
Contributed tangible capital assets
2,425,232
2,425,232
5,120,862
Other income
-
1,004,257
63272
Loss on disposal of tangible capital assets
-
(352,699)
(2,543,605)
Total revenue
101,074,670
107,750,601
99,256,536
Expenses
General government services
7,216,844
6,411,011
6,845,738
Protection services
20,220,154
19,933,461
19,604,062
Transportation services
33,805,487
31,321,742
33,682,585
Enviromental services
3,328,509
3,334,134
3,470,674
Health services
522,908
520,247
429,164
Recreation and cultural services
27,954,909
25,413,530
24,522,968
Planning and development services
6,844,804
5,703,383
6,359,988
Total expenses
99,893,615
92,637,508
94,915,179
Annual surplus
1,181,055
15,113,093
4,341,357
Accumulated surplus, beginning of year
552,630,607
552,630,607
548,289,250
Accumulated surplus, end of year
$553,811,662
$567,743,700
$552,630,607
The accompanying notes are an integral part of these consolidated financial statements.
'61
The Corporation of the Municipality of Clarington
Consolidated Statement of Change in Net Financial Assets
For the year ended December 31, 2021
Annual surplus
2021
Budget
2021
Actual
2020
Actual
$ 1,181,055 $ 15,113,093 $ 4,341,357
Amortization of tangible capital assets
20,677,662
21,567,993
21,654,409
Acquisition of tangible capital assets
(27,618,376)
(16,232,109)
(23,945,375)
Investment in assets under construction
-kJ
(9,843,572)
(10,451,338)
Assets under construction transferred to tangible
capital assets
-
6,931,129
13,565,125
Net book value of tangible capital assets disposals /
adjustments
-
390,901
2,584,155
Increase (Decrease) in prepaid expenses -
63,667
(29,143)
(Decrease) Increase in inventory supplies
-
(119,906)
75,642
Increase(decrease) in net financial assets
(5,759,659)
17,871,196
7,794,832
Net financial assets, beginning of year 87,103,156 87,103,156 79,308,324
Net financial assets, end of year+ $ 81,343,497 $104,974,352 $ 87,103,156
The accompanying notes are an integral part of these consolidated financial statements.
The Corporation of the Municipality of Clarington
Consolidated Statement of Cash Flows
For the year ended December 31, 2021
2021
2020
Operating activities
Annual surplus $
15,113,093 $
4,341,357
Non cash items
Amortization of tangible capital assets
21,567,993
21,654,409
Loss on disposal of tangible capital assets
352,699
2,543,605
Equity share of Elexicon Corporation net income
(1,617,475)
(1,063,520)
Contributed tangible capital assets recorded in revenue
(2,425,232)
(5,120,862)
Change in non -cash operating items
Accounts receivable
1,251,594
1,652,212
Taxes receivable
(247,079)
95,186
Inventories for resale
499
(2,549)
Inventory of land for resale
75,000
203,549
Accounts payable and accrued liabilities
(2,187,446)
3,242,686
Employee future benefits liabilities
478,182
425,819
Deferred revenue - general 4L,
2,998,330
(1,591,979)
Deferred revenue - obligatory reserve funds
7,968,447
13,868,142
Prepaid expenses
63,667
(29,143)
Inventory supplies
(119,906)
75,642
43,272,366 40,294,554
Capital activities
Acquisition of tangible capital assets (net of contributed) (16,719,320) (15,710,726)
Proceeds on disposal of tangible capital assets 38,202 40,550
(16,681,118) (15,670,176)
Investing activities
Increase in investments (27,146,372) (1,201)
Dividends received from Elexicon Corporation 1,053,347 1,045,949
(26,093,025) 1,044,748
Financing activities
Repayment of long term liabilities (1,858,842) (2,334,033)
(1,858,842) (2,334,033)
Net increase(decrease), of cash and cash equivalents (1,360,619) 23,335,093
Cash and cash equivalents, beginning of year 79,019,522 55,684,429
Cash and cash equivalents, end of year $ 77,658,903 $ 79,019,522
The accompanying notes are an integral part of these consolidated financial statements.
7
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2021
The Municipality of Clarington (the "Municipality") is a municipality in the Province of Ontario, Canada.
It conducts its operations guided by the provisions of provincial statutes such as the Municipal Act,
the Municipal Affairs Act and related legislation.
1. Significant accounting policies
The consolidated financial statements of the Municipality are the representations of management
prepared in accordance with Canadian Public Sector Accounting Standards ("PSAS").
a. Significant accounting policies adopted are as follows:
i. Reporting entity & 4
These consolidated financial statements reflect financial assets, liabilities, operating
revenues and expenses, and the changes in investment in tangible capital assets of
the Municipality of Clarington. The reporting entity is comprised of all organizations,
local boards and committees controlled by the Municipality, including the following:
- Board of Management for the Historic Downtown
Bowmanville Business Improvement Area
- Board of Management for the Newcastle Central
Business District Improvement Area
- Board of Management for the Orono Central
Business District Improvement Area
- Clarington Public Library Board and Clarington
Museums and Archives
- Newcastle Arena Board
- Newcastle Community Hall
Board
- Solina Hall Board
- Tyrone Community Hall Board
- Bowmanville Santa Claus Parade Committee - Clarington Heritage Committee
- Orono Cemetery Board*
All material inter -entity transactions and balances are eliminated on consolidation.
*As of June 10, 2019, the Municipality assumed operations of the Orono Cemetery
Board. As of the reporting date, the Municipality was working in conjunction with the
Bereavement Authority of Ontario (BAO) to complete the transfer of the license to the
Municipality. The BAO confirmed the transfer was complete on March 25, 2022.
ii. Investment in Elexicon Corporation
The Municipality of Clarington, along with the City of Pickering, the Town of Ajax, and
the City of Belleville own 68% of Elexicon Corporation. The Town of Whitby owns the
remaining 32% of Elexicon Corporation. The Municipality of Clarington holds a 9.248%
share of ownership.
The Municipality's investment in Elexicon Corporation and its subsidiaries is accounted
for on a modified equity basis, consistent with generally accepted accounting principles
as recommended by PSAS for investments in government business partnerships.
�'j
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2021
1. Significant accounting policies (continued)
a. Significant accounting policies adopted are as follows: (continued)
ii. Investment in Elexicon Corporation (continued)
Under the modified equity basis of accounting, the business partnership's accounting
principles are not adjusted to conform to those of the Municipality and inter -
organizational transactions and balances are not eliminated. The Municipality
recognizes its equity interest in the annual income or loss of Elexicon Corporation in its
"Consolidated Statement of Operations" with a corresponding increase or decrease in
its investment asset account. Any dividends that the Municipality may receive from
Elexicon Corporation and other capital transactions will be reflected as adjustments in
the investment asset account.
iii. Accounting for region and school board transactions
The taxation and other revenues, expenses, assets and liabilities with respect to the
operations of the school boards and the Regional Municipality of Durham are not
reflected in these financial statements.
iv. Accounting for phase-in/capping provisions
Increases/decreases in property taxes levied as a result of the application of phase-
in/capping legislation are not reflected in the Consolidated Statement of Operations but
are reported on the Consolidated Statement of Financial Position.
V. Trust funds
Trust funds and their related operations administered by the Municipality are not
included in these consolidated financial statements, but are reported separately on the
"Trust Funds Statement of Operations" and "Trust Funds Statement of Financial
Position".
Basis of accounting
♦%L
i. Accrual basis of accounting
Revenues and expenses are reported on the accrual basis of accounting. The accrua
basis of accounting recognizes revenues in the period in which transactions or events
occurred that gave rise to the revenues; expenses are recognized in the period the
goods and services are acquired and a liability is incurred or transfers are due.
ii. Cash and cash equivalents
Cash and cash equivalents are comprised of cash on hand, demand deposits and
bankers acceptances, all of which are highly liquid, subject to insignificant risk of
changes in value and have a short-term maturity of less than 90 days.
9
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2021
1. Significant accounting policies (continued)
b. Basis of accounting (continued)
iii. Investments
Portfolio investments are carried at cost, net of accumulated amortization on premiums
and discounts. Premiums and discounts are amortized on a straight line basis over the
term to maturity. Interest income is recorded as it accrues. When the value of any
portfolio investment is impaired, the carrying amount is adjusted to the estimated
realizable amount and any adjustments are included in investment income in the period
the impairment is recognized. sl:�w
iv. 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 ordinary course of operations. The change in
non -financial assets during the year, together with the excess of revenues over
expenses, provides the Changes in Net Financial Assets for the year.
(a) Tangible capital assets ("TCA")
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 are amortized on
a straight-line basis over their estimated useful lives as follows:
Land improvements
20-75 years
Buildings
5-75 years
Vehicles
7-20 years
Equipment
3-25 years
Linear road and related
7-75 years
Linear storm sewers
40-75 years
Amortization
The Municipality uses the straight line method of amortization. For pooled assets
and networks such as roads and storm sewers, one half of the annual amortization
is charged in the year of acquisition or in-service date and in the year of disposal.
For individual assets, if acquired (or in-service) in the first half of the year, the full
year of the amortization is charged. If acquired (or in-service) in the second half of
the year, one half of the annual amortization is charged. Similarly in the year of
disposal, if the asset is disposed of in the first half of the year, one half of the
amortization is charged but if disposed of in the second half of the year the full
10
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2021
1. Significant accounting policies (continued)
b. Basis of accounting (continued)
iv. Non -financial assets (continued)
annual amortization is charged. Assets under construction are not amortized until
the asset is available for productive use, at which time they are capitalized.
Contribution of tangible capital assets
Tangible capital assets received as contributions are recorded at their fair value at
the date received/assumed and that fair value is also recorded as revenue.
(b) Inventories
Inventories held for consumption are recorded at the lower of cost or replacement
cost.
V. Reserves and reserve funds
Certain amounts, as approved by Council, are set aside in reserves and reserve funds
for future operating and capital purposes. Transfers to and/or from reserves and
reserve funds are an adjustment to the respective fund when approved. Reserves and
reserve funds form part of the Municipality's accumulated surplus.
vi.
Deferred revenues
Deferred Revenues, which include advance payments for tickets, building permits and
program registration fees; contributions from developers according to Section 37 of the
Planning Act; and revenues set aside for specific purposes (obligatory reserve funds),
'
represent fees which have been collected, but for which the related services have not
'
yet been provided. Revenue is recognized when the related activity occurs or the
service is performed.
vii.
Employee future benefits
The present value of the cost of providing employees with future benefits programs is
expensed as employees earn these entitlements through service. The cost of the
benefits earned by employees is actuarially determined using the projected benefit
method prorated on service and management's best estimate of retirement ages of
employees and expected health care and dental costs. Actuarial gains or losses are
amortized on a straight-line basis over the expected average remaining service life of
all employees covered.
viii. Contaminated sites
Contaminated sites are the result of contamination being introduced in air, soil, water
or sediment of a chemical, organic, or radioactive material or live organism that exceed
an environmental standard. A liability for remediation of contaminated sites is
11
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2021
1. Significant accounting policies (continued)
b. Basis of accounting (continued)
viii. Contaminated sites (continued)
recognized, net of any expected recoveries, when all of the following criteria are met: a)
an environmental standard exists; b) contamination exceeds the environmental
standard; c) the organization is directly responsible or accepts responsibility for the
liability; d) future economic benefits will be given up; and e) a reasonable estimate of
the liability can be made. Changes in this estimate are recorded in the Municipality's
statement of operations. As of December 31, 2021, there was no liability recorded on
the statement.
ix. Revenue Recognition
Taxation
Property tax billings are prepared by the Municipality based on assessment rolls issued
by the Municipal Property Assessment Corporation ("MPAC"). Tax rates are
established annually by Council, incorporating amounts to be raised for local services
and amounts the Municipality is required to collect on behalf of the Regional
Municipality of Durham and the Province of Ontario in respect of education taxes.
Taxes are recorded at estimated amounts when they meet the definition of an asset,
have been authorized and the taxable event occurs. For property taxes, the taxable
event is the period for which the tax is levied. As taxes recorded are initially based on
management's best estimate of the taxes that will be received, it is possible that
changes in future conditions, such as reassessments due to audits, appeals and court
decisions, could result in a change in the amount of tax revenue recognized. Taxes
' receivable are recognized net of an allowance for anticipated uncollectible amounts.
A normal part of the assessment process is the issuance of supplementary
assessment rolls which provide updated information with respect to changes in
property assessment. Once a supplementary roll is received, the Municipality
determines the taxes applicable and renders supplementary tax billings. Assessments
of the related property taxes are subject to appeal. Any supplementary billing
adjustments made necessary by the determination of such changes will be recognized
in the fiscal year they are determined and the effect shared with the Region of Durham
and school boards, as appropriate.
Government transfers
Government transfers are recognized as revenue in the financial statements when the
transfer is authorized and any eligibility criteria are met, except to the extent that
transfer stipulations give rise to an obligation that meets the definition of a liability.
Transfers are recognized as deferred revenue when transfer stipulations give rise to a
liability. Transfer revenue is recognized in the statement of operations as the stipulation
liabilities are settled.
12
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2021
1. Significant accounting policies (continued) `
b. Basis of accounting (continued)
ix. Revenue Recognition (continued)
Government transfers and developer contributions -in -kind related to capital
acquisitions are required to be recognized as revenue in the consolidated financial
statements in the period in which the tangible capital assets are acquired.
User fees and service charges
User charges are recognized when the services are performed or goods are delivered
and there is reasonable assurance of collection.
Other
Other revenue is recorded when it is earned and collection is reasonably assured.
Investment income NZ
Investment income earned on operating surplus funds and reserve funds (other than
obligatory reserve funds) are recorded as revenue in the period earned. Investment
income earned on obligatory reserve funds are recorded directly to each respective
fund balance and forms part of the deferred revenue — obligatory reserve funds
balance.
X. Inventory for resale
Inventory for resale is valued at the lower of cost or net realizable value on an average
cost basis.
xi. Use of estimates
Since precise determination of many assets and liabilities is dependent upon future
events, the preparation of periodic financial statements necessarily involves the use of
estimates and approximations. These have been made using careful judgment. Actual
results could differ from these estimates.
2. Trust funds
Trust funds administered by the Municipality amounting to $2,006,827 (2020 — $1,933,011) have
not been included in the "Consolidated Statement of Financial Position" nor have their financial
activities been included in the "Consolidated Statement of Operations".
3. Operations of school boards and The Regional Municipality of Durham
Further to Note 1(a)(iii), requisitions were made by the Regional Municipality of Durham and
School Boards requiring the Municipality of Clarington to collect property taxes and payments in
13
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2021
3. Operations of school boards and The Regional Municipality of Durham (continued)
lieu of property taxes on their behalf. The amounts levied and remitted are summarized below:
Regional
School Municipality
Boards of Durham
2021
Property taxes $ 32,531,062 $ 96,914,320
Taxation from other governments
Total
83,839 2,951,157
$ 32,614,901 $ 99,865,477
2020
Property taxes $ 33,327,860 $ 93,206,600
Taxation from other governments 90,735 2,889,931
Total X$ 33,418,595 $ 96,096,531
4. Investments
Total investments of $96,426,970 (2020 - $69,280,598) reported on the Consolidated Statement
of Financial Position at cost plus accrued interest, have a market value of $99,985,087 (2020 -
$73,104,547 ) at the end of the year. The investments consist of investments pursuant to
provisions of the Municipality's investment policy and comprise government bonds and
guaranteed investment certificates (GICs) issued by various financial institutions. It is the
Municipality's intention to hold these investments until maturity.
9a -
2021 Cost
2021 Market
Value
2020 Cost
2020 Market
Value
GICs
$ 46,840,154
$ 49,755,193
$ 38,838,412
$ 40,174,373
Bonds
42,362,106
41,990,209
23,536,521
25,262,800
Pooled Funds Equity
2,835,624
4,143,342
2,588,679
3,492,447
Pooled Funds Bonds
4,389,086
4,096,343
4,316,986
4,174,927
Total
$ 96,426,970
$ 99,985,087
$ 69,280,598
$ 73,104,547
The Municipality holds investments with a maturity of less than 90 days, in a High Interest
Savings Account. This value is reported within cash and cash equivalents, due to the highly liquid
nature of these investments. Total investments, with a maturity of less than 90 days, have a value
14
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2021
4. Investments (continued)
of $35,168,036 (2020 - $24,453,346) on the Consolidated Statement of Financial Position.
5. Taxes receivable
The balance in taxes receivable, including penalties and interest, is comprised of the following:
'S 2021 2020
Current year taxes $ 6,660,373 $ 6,830,452
Previous year taxes
Allowance for uncollectible taxes
6. Promissory notes receivable
1
2,274,847 2,457,689
8,935,220
(150,000)
8,78
2021
9,288,141
(750,000)
8,538,141
2020
Promissory note receivable from Elexicon Corporation due on
demand and bearing interest at the Ontario Energy Board
deemed long-term debt rate on an annual basis to maturity
(4.13% for the current year). $ 2,355,000 $ 2,355,000
Promissory note receivable from Elexicon Energy Inc. maturing
November 1, 2039 and bearing interest at the Ontario Energy
Board deemed long-term debt rate on a annual basis to
maturity (4.13% for the current year). 5,966,000 5,966,000
x $ 8,321,000 $ 8,321,000
Interest revenue earned from these notes receivable totaled $343,657 (2020 - $343,657). The
Municipality has waived its right to demand repayment of any portion of the principal of the
promissory notes payable before the date of January 1, 2023.
15
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2021
7. Investment in Elexicon Corporation
a. Investment in Elexicon Corporation
The Municipality of Clarington, along with the City of Pickering, the Town of Ajax, and the
City of Belleville own 68% of Elexicon Corporation. The Town of Whitby owns the remaining
32% of Elexicon Corporation. The Municipality of Clarington holds a 9.248% share of
ownership. The Municipality is accounting for this investment using a modified equity basis
in these financial statements. The financial impact to the Municipality of Clarington's
investment and equity are reported below.
The following table provides condensed supplementary financial information of Elexicon
Corporation and its subsidiaries for the year ended December 31:
2021
2020
Financial position
Assets
Current
$ 104,266,000
$ 98,525,000
Capital and intangibles
584,949,000
535,400,000
Other
341,000
162,000
Regulatory balances !
39,164,000
26,912,000
Total assets and regulatory balances
728,720,000
660,999,000
Liabilities
Current
85,153,000
88,743,000
Long-term debt
258,526,000
214,502,000
Other
132,520,000
110,913,000
Total liabilities
476,199,000
414,158,000
Shareholders' equity
Share capital
97,692,000
97,692,000
Contributed capital
25,000
25,000
Retained earnings
153,398,000
147,288,000
Regulatory balances
1,406,000
1,836,000
Total shareholders' equity and regulatory balances
252,521,000
246,841,000
Total liabilities, equity and regulatory balances
728,720,000
660,999,000
IN
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2021
7. Investment in Elexicon Corporation (continued)
a. Investment in Elexicon Corporation (continued)
2021 2020
Financial activities
Revenues 501,355,000 553,366,000
Other income 9,978,000 6,482,000
Expenses (507,085,000) (559,888,000)
Net movements in regulatory balances, net of tax 13,242,000 11,540,000
Net income for the year $ 17,490,000 $ 11,500,000
b. Municipality's equity is represented by:
Akw% 2021 2020
Promissory notes receivable (Note 6) $ 8,321,000 $ 8,321,000
Initial investment in shares of the Corporation 10,146,495 10,146,495
Accumulated net income 21,732,048 20,114,574
Net increase in value of investment 400,126 400,126
Accumulated dividends received (13,133,543) (12,080,197)
Total equity 27,466,126 26,901,998
Municipality of Clarington's investment represented by:
Investment in Corporation 19,145,126 18,580,998
Promissory notes receivable 8,321,000 8,321,000
$ 27,466,126 $ 26,901,998
/"4140 Contingencies and guarantees of Elexicon Corporation (the "Corporation") as
disclosed in their financial statements are as follows:
(i) Insurance claims
The Corporation is a member of the Municipal Electric Association Reciprocal Insurance
Exchange ("MEARIE") which was created on January 1, 1987. A reciprocal insurance
exchange may be defined as a group of persons formed for the purpose of exchanging
reciprocal contracts of indemnity or inter -insurance with each other. MEARIE provides
general liability insurance to member electric utilities. MEARIE also provides vehicle and
property insurance to the Corporation.
IiVA
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2021
7. Investment in Elexicon Corporation (continued)
C. Contingencies and guarantees of Elexicon Corporation (the "Corporation") as
disclosed in their financial statements are as follows: (continued)
Insurance premiums charged to each member electric utility consist of a levy per $1,000
of service revenue subject to a credit or surcharge based on each electric utility's claims
experience. The maximum coverage is $40,000,000 per occurrence, for liability
insurance, $21,000,000 for vehicle insurance and $198,798,000 for property insurance
and $12,000,000 for privacy, cyber, and network security insurance.
(ii) Contractual obligation - Hydro One Networks Inc.
The Corporation's subsidiary, Elexicon Energy Inc. (EEI), is party to a connection and
cost recovery agreement with Hydro One related to the construction by Hydro One of a
transformer station designated to meet EEI's anticipated electricity load growth.
Construction of the project was completed during 2007 and EEI connected to the
transformer station during 2008.
To the extent that the cost of the project is not recoverable from future transformation
connection revenues, EEI is obliged to pay a capital contribution equal to the difference
between these revenues and the construction costs allocated to EEI. The construction
costs allocated to EEI for the project are $19,950,000.
Hydro One has performed a true -up based on actual load at the end of the tenth
anniversary of the in-service date and the Corporation has paid $0 in 2021 (2020
-$2,135,000) to Hydro One and recognized the same as an intangible asset. Hydro One
is expected to perform a true -up based on actual load at the end of the fifteenth
anniversary of the in-service date.
.a
d. Lease commitments - Elexicon Corporation
Future minimum lease payment obligations under operating leases are as follows:
2022
2023
2024
2025
2026
Thereafter
$ 217,000
177,000
124,000
95,000
71,000
44,000
$ 728,000
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2021
8. Employee future benefits liabilities
a. Accumulated sick leave entitlement
(i) Firefighters
The Municipality provides two sick leave accumulation plans for firefighters. Plan A
accumulates at the rate of one day per month of completed years of service to a
maximum of 182 days. These employees may become entitled to a cash payment on
retirement, early retirement, termination or death, at the rate of 50% of the accumulated
credit, to a maximum of one-half a year's salary. Plan B accumulates at the rate of one
day per month once the employees complete five years of service. The estimated liability
at December 31, 2021 was $1,096,690 (2020 - $1,009,061).
(ii) Other
During the 1993 fiscal year, the Municipality negotiated an agreement with all employees
(except firefighters) to terminate the sick leave benefit plan which had been in effect for
many years. The Municipality agreed to pay to those employees covered by the plan and
who had at least five -years' service with the Municipality a cash equivalent of 50% of sick
leave days accumulated to July 1, 1993 to a maximum of 120 days of salary.
Remuneration for the buying out of sick days identified will be available to the employee
at any time up to the time that the employee either leaves the Corporation or retires, at
the rate of remuneration in effect at July 31, 1993. The estimated liability at December
31, 2021 amounted to $17,154 (2020 - $21,196).
b. Post -employment benefits - other
The Municipality makes available to qualifying employees who retire before the age of 65
(firefighters - age 60) the opportunity of continuing their coverage for benefits such as
medical (extended health), dental, and life insurance benefits. Coverage ceases at age 65.
Dependent upon the eligibility, the cost of this coverage may be a shared responsibility
between the Municipality and the retired employees.
An actuarial valuation was performed as at December 31, 2021 based on data as at the
valuation date and plan provisions. The accrued benefit obligation and net benefit costs (i.e.
the expense) for the 2021 fiscal year end was determined by this valuation.
The significant actuarial assumptions employed for the valuation are as follows:
(i) Discount rate will be 1.90% per annum.
(ii) Future inflation rates will be 2.00%.
(iii) Dental cost trend rates will escalate at 3.00% in fiscal 2021 and remain stable at
that level until 2024.
(iv) Extended health care trend rates will be 5.37% in fiscal 2021; and remain stable
at that level until 2024.
riK
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2021
8. Employee future benefits liabilities (continued)
C. Information about the Municipality's employee future benefits liabilities is as follows:
Accrued benefit obligation
Balance, beginning of year
Employer current service cost
Interest cost
Benefits paid
Actuarial (gain) loss
Balance, end of year ow
Unamortized net actuarial gains
2021 2020
$ 10,714,959 $ 9,898,089
604,985
208,588
(496,608)
(831,365)
541,249
252,516
(493,252)
516,357
10,200,559 10,714,959
(658,420) (1,651,002)
Employee future benefits liabilities, end of year $ 9,542,139 $ 9,063,957
9. Pension agreements
The Municipality makes contributions to the Ontario Municipal Employees Retirement Fund
("OMERS"). OMERS is a multi -employer defined benefit pension plan which provides pensions for
employees of Ontario municipalities, local boards, public utilities and school boards. The pension
plan is financed by equal contributions from participating employers and employees, and by the
investment earnings of the fund. The most recent actuarial valuation of the Plan was conducted at
December 31, 2021. The results of this valuation disclosed total actuarial liabilities of $120,796
million with respect to benefits accrued for service with actuarial assets at that date of $117,665
million indicating an actuarial deficit of $3,131 million. Because OMERS is a multi -employer plan,
any Plan surpluses or deficits are the joint responsibility of Ontario municipal organizations and
their employees. As a result the Municipality does not recognize any share of the Plan surplus or
deficit.
The Municipality recognizes the expense related to this plan as contributions are made. The
contribution rates and year's maximum pensionable earnings (YMPE) are outlined in the table
below.
NRA 65 up NRA 65 up NRA 60 up NRA 60
Year YMPE to YMPE to YMPE to YMPE over YMPE
2021 $ 61,600 9.00 % 14.60 % 9.20 % 15.80 %
2020 $ 58,700 9.00 % 14.60 % 9.20 % 15.80 %
The amount contributed to OMERS for 2021 was $3,364,678 (2020 — $3,308,521) for current
services and is included as an expense on the statement of operations.
all
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2021
10. Debenture Debt `
The debenture debt consists of several debentures that mature in the years 20At 20 .
a. Debenture debt details
At the end of the year, the outstanding principal amount of this liability is $7,686,715 (2020 -
$9,545,557).
Maturity Date
Interest Rate %'
Regional
By-law #
2021
2020
July 12, 2021
5.12
52-2006 $
- $
103,099
August 21, 2022
4.60 to 4.75
07-2007
1,000,000
2,000,000
July 2, 2024
1.95 to 3.35
38-2014
464,000
611,000
July 2, 2029
1.95 to 3.80
38-2014
3,766,600
4,176,600
October 17, 2031
1.25 to 2.80
48-2016
688,000
750,000
April 13, 2032
1.70 to 3.30
56-2017
774,413
834,305
April 13, 2032
1.70 to 3.30
56-2017
993,702
1,070,553
$
7,686,715 $
9,545,557
1 Interest rates gradually increase to the upper limits noted in the table.
b. Principal repayments
Of the municipal debt reported in (a) of this note, principal payments are payable from
general municipal revenues follows:
2022 $ 1,775,923
2023 797,103
2024 818,737
2025 679,826
2026 699,915
Thereafter 2,915,211
$ 7,686,715
C. Principal and interest
The annual principal and interest payments required to service these liabilities are within the
21
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2021
10. Debenture Debt (continued)
C. Principal and interest (continued)
annual debt repayment limit prescribed by the Ministry of Municipal Affairs and Housing.
d. Interest expense �f I
Total interest expense related to the net long-term liabilities amounted to $280,509 (2020 -
$354,362) and is reported on the Consolidated Statement of Operations.
11. Internal Loans
. 4
As a means of funding various capital acquisitions, funds are borrowed from the Municipal Capital
Reserve Fund. These funds are secured by promissory notes with interest rates ranging from
2.20% to 3.30% and payment terms of 15 years. The financing arrangements and ultimate
repayment are approved by Council through the budget process.
a. The following is a summary of the individual loans:
Major Parking Lot Rehabilitation $ 1,460,384
LED Street lighting Conversion 2,170,616
$ 3,631,000
b. Of the internal loans reported in (a) of this note, principal payments are as follows:
2022 $ 257,000
2023 263,000
2024 271,000
2025 279,000
2026 287,000
Thereafter 2,274,000
1
$ 3,631,000
22
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2021
12. Deferred revenue - obligatory reserve funds
The continuity of "deferred revenue - obligatory reserve funds" of the Municipality is summarized
as follows:
2021 2020
Balance, beginning of year
$ 61,435,647
$ 47,567,505
Contributions:
Contributions from developers
11,868,622
r
15,080,110
Investment Income
787,978
1,195,007
Canada community -building
5,723,561
2,791,328
Provincial infrastructure
1,893,429
1,882,464
IL
20,273,590
20,948,909
Utilization:
Transfer to operating
634,085
1,700,073
Acquisition of TCA - construction
11,671,058
5,380,694
12,305,143
7,080,767
Change in deferred revenue during the year
7,968,447
13,868,142
Balance, end of year
69,404,094
61,435,647
Balance, end of year - analyzed as follows:
Parkland cash -in -lieu
5,183,960
3,678,240
Canada community -building
4,181,454
2,456,571
Building code act
2,847,931
2,780,177
Provincial infrastructure
1,204,275
2,505,444
Development charges (Note 13)
55,986,474
50,015,215
Total deferred revenue — obligatory reserve funds
$ 69,404,094
$ 61,435,647
a3
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2021
13. Continuity of development charges reserve funds
Balance at the beginning of the year
Development charges collections
Investment income
Tangible capital assets acquisitions and construction
Operating expenses
2021 2020
$ 50,015,215 $ 38,324,298
10, 640, 407
15, 858, 733
625,190
923,855
(3,587,431)
(2,117,686)
(1,706,907)
(2,973,985)
Balance at the end of the year $ 55,986,474 $ 50,015,215
14. Contingencies
Various legal actions and claims have been initiated by and against the Municipality, the
outcomes of which cannot be determined at the time of reporting. Accordingly, no provision has
been made in these consolidated financial statements for any liability which may result. Should
any gain or loss occur as a result of the above legal actions the Municipality will account for the
gain/loss when it is likely that such a gain/loss will occur and the amount is measurable.
15. Contractual commitments
During the year the Municipality had work done on several major projects with contract values
totaling approximately $36,339,591 (2020 - $42,939,583). These contracts relate to the
construction and expansion of certain permanent facilities. As at December 31, 2021, $7,722,307
(2020 - $7,740,569) relating to these contracts had not been expended.
16. Related party transactions and balances - Elexicon Corporation
i . 2021 2020
Transactions
Dividends received
Interest earned on promissory notes
Property taxes
Energy and services purchases
Balances
Promissory notes receivable
Accounts payable and accrued liabilities
$ 1,053,347 $ 1,045,949
343,657
343,658
33,929
33,533
485,981
628,746
8,321,000 8,321,000
78,193 86,139
011
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2021
17. Guarantees
In the normal course of business, the Municipality enters into agreements which contain
guarantees. The Municipality's primary guarantees are as follows:
(i) The Municipality has provided indemnities under lease agreements for the use of various
facilities or land. Under the terms of these agreements the Municipality agrees to indemnify
the counterparties for various items including, but not limited to, all liabilities, losses, suits, and
damages arising during, on or after the term of the agreement. The maximum amount of any
potential future payment cannot be reasonably estimated.
(ii) The Municipality indemnifies employees and elected officials for various items including, but
not limited to, all costs to settle suits or actions due to association with the Municipality,
subject to certain restrictions. The Municipality has purchased liability insurance to mitigate the
cost of any potential future suits or actions. The term of the indemnification is not explicitly
defined, but is limited to the period over which the indemnified party served as an employee or
elected official of the Municipality. The maximum amount of any potential future payment
cannot be reasonably estimated.
(iii) The Municipality has entered into agreements that may include indemnities in favour of third
parties, such as purchase and sale agreements, confidentiality agreements, engagement
letters with advisors and consultants, outsourcing agreements, leasing contracts, information
technology agreements and service agreements. These indemnification agreements may
require the Municipality to compensate counterparties for losses incurred by the counterparties
as a result of breaches in representation and regulations or as a result of litigation claims or
statutory sanctions that may be suffered by the counterparty as a consequence of the
transaction. The terms of these indemnities are not explicitly defined and the maximum
amount of any potential reimbursement cannot be reasonably estimated.
%
The nature of these indemnification agreements prevents the Municipality from making a
reasonable estimate of the maximum exposure due to the difficulties in assessing the amount of
liability which stems from the unpredictability of future events and the unlimited coverage offered
to counterparties. Historically, the Municipality has not made any significant payments under such
or similar indemnification agreements and therefore no amount has been accrued in these
consolidated financial statements with respect to these agreements.
18. Tangible capital assets
The continuity of the historical cost and accumulated amortization for various categories of
tangible capital assets can be found in Schedule 1.
Further information relating to tangible capital assets is as follows:
a. Contributed tangible capital assets
The Municipality of Clarington records all tangible assets contributed by an external party at
P41
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2021
18. Tangible capital assets (continued)
a. Contributed tangible capital assets (continued)
fair value on the earlier of the date received or of the transfer of risk and responsibility.
Typical examples are roadways, parks, land, and storm sewer lines installed by a developer
as part of a subdivision agreement. For subdivision assets, the recorded date is considered
to be the date of acceptance with the exclusion of streetlights with the recorded date as the
date of completion. In 2021, there were contributed assets of $2,425,232 (2020 -
$5,120,862).
b. Works of Art and Historical Treasures I .t
The Municipality has one historical collection. The Clarington Museums and Archives
collection is currently insured for $238,500. Also included in historical treasures are the
cenotaphs located in Bowmanville, Newcastle, Orono and Newtonville. Due to the rural
history, there are several abandoned cemeteries located throughout the Municipality. All
associated physical items, including historical signs and cairns, or concrete structures build
for old headstones, are considered a historical treasure.
19. Accumulated surplus
Accumulated surplus is comprised of the following:
Investment in tangible capital assets
General surplus
Capital Surplus
Inventory - surplus land
Debenture debt
Unfunded employee benefits and post -employment liabilities
Reserves set aside for specific purposes by Council:
Acquisition of capital assets
Legal / consulting
Election expenses
Fire prevention
Burketon park improvements
Samuel Wilmot nature area
Secondary plans
Clarington Heritage committee board
2021 2020
$461,278,530 $464,092,872
6,954,091
5,718,505
24,336,869
18,517,314
146,349
221,349
(7,686,715)
(9,545,557)
(2,323,287)
(2,799,829)
5,825,242 4,238,932
2,261,174 1,524,135
347,338
222,338
304,552
284,552
7,569
7,569
595
1,592
128,340
133,054
6,151
7,051
141
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2021
19. Accumulated surplus (continued)
2021
2020
Reserve funds set aside for specific purposes by Council:
General municipal purposes
7,597,010
6,857,815
Rate stabilization
9,376,171
7,325,184
Stategic capital
10,351,048
9,964,744
Recreation programs and facilities
883,425
394,764
Debenture repayment
651,771
568,975
Industrial development
614,607
556,028
Other cultural
149,301
132,720
Acquisition of capital assets
8,634,885
8,171,365
Newcastle Waterfront study
45,127
44,603
Municipal capital works
4,854,567
3,550,192
Other capital - unspecified
982,334
970,237
Road contributions
3,138,028
3,379,286
Westside Bridge/Bowmanville Mars
-
(2,199)
Port Granby LLRW M � 0
315,420
306,129
Community improvement plan
152,622
137,941
Business improvement areas
137,919
161,766
Hampton Union Cemetery
115,065
113,642
Community emergency management
691,476
471,540
Equity in Elexicon Corporation
27,466,126
26,901,998
Accumulated surplus
$567,743,700
$552,630,607
20. Segmented information
The Municipality provides a wide range of services to its residents. Distinguishable functional
segments have been separately reported on Schedule 2. For each segment, revenues and
expenses represent amounts that are directly attributable to each segment. Tax revenues are
reported as part of general government.
The nature of the segments and the activities they encompass are as follows:
a. General government services
General government is comprised of all departments that support the corporate governance,
management and program support for the Municipality.
27
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2021
20. Segmented information (continued)
b. Protection services
o�
Protection services includes protection to persons and property and is comprised of
Emergency and Fire Services, Municipal Law Enforcement, Animal Services and Building
Inspection / Enforcement services. Emergency and Fire Services includes responsibility for
emergency management, fire prevention and public education, fire suppression,
communication, and training.
C. Transportation services
Transportation services includes services provided by the Public Works department. The
primary responsibilities include the inspection, planning and maintenance of the roads,
bridges, sidewalks, streetlights, roadsides, winter snow clearing, subdivision planning, traffic
engineering, development, and municipal servicing reviews. Other services include fleet
maintenance, parking and school crossing guards.
d. Environmental services
Environmental services includes storm -water management, erosion control and resale of
waste diversion goods.
e. Health services V&
Health services includes the maintenance and operation of the Municipality's active and
abandoned cemeteries and crematorium, cemetery records management and the sale of
cemetery plots, permits and headstones.
V" 1%
f. Recreation and cultural services
A �
Recreation and cultural services includes the administration, operation and maintenance of
all recreational, aquatic, arena, community recreational facilities, parks and trails. Clarington
Libraries, Museums and other external cultural agencies are also included in this segment.
Planning and development services
Planning and development services includes the development of planning policies, urban
design, development approvals, heritage preservation, real estate services and geomatics.
This segment further includes business improvement areas and tourism activities.
21. Budget amounts
The budget figures reflected in these consolidated statements are those approved by Council on
February 5, 2021. Budget figures have been translated to reflect Public Sector Accounting Board
standards (PSAS).
184:j
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2021
22. Comparative figures
Certain comparative figures have been reclassified to conform to the financial statement
presentation adopted in the current year. \
23. Impact of COVID-19 �f
In 2021, the COVID-19 pandemic continued to severely impacted many local economies around
the globe. In many countries, including Canada, organizations and businesses were forced to
cease or limit operations for long or indefinite periods of time. Measures taken to contain the
spread of the virus, including travel bans, quarantines, social distancing, and closures of non-
essential services have triggered significant disruptions to organizations worldwide, resulting in an
economic slowdown. Global stock markets have also experienced great volatility and a significant
weakening. Governments and central banks have responded with monetary and fiscal
interventions to stabilize economic conditions.
The COVID-19 pandemic had significant impacts on the activities of the Municipality in 2021. The
stay-at-home order was still in effect and the Province of Ontario continued with the
implementation of the mass vaccination plan. The closure of all recreation programs and facilities,
outdoor amenities and parks, libraries, museums, and non -essential business remained in effect.
Throughout 2021, the Municipality maneuvered between various states of lockdown and capacity
limitation, and took steps to mitigate lost revenues by focusing on expense reduction and facility
closures. In support of the community, the Municipality created a tax deferral program to assist
residential taxpayers and offered community improvement plan grants to small businesses to
assist with adapting their businesses to address public health measures for reopening purposes.
The ultimate duration and magnitude of the impact the pandemic will have on the economy and
the Municipality are not known at this time. These impacts potentially include an impact on the
Municipality's ability to access and obtain capital financing, impairment of investments, reduction
to operational cash flow as a result of the inability of the Municipality to fully recover on its
customer accounts and potential future decreases in revenue or the profitability of the
Municipality's ongoing operations.
•'7
The Corporation of the Municipality of Clarington
Consolidated Schedule of Tangible Capital Assets - Schedule 1
For the Year Ended December 31, 2021
2021
General Infrastructure
Land Linear Road Linear Storm Assets under
Land Improvements Buildings Vehicles Equipment Land & Related Sewers Buildings Vehicles Equipment construction Total
Cost
Balance, beginning �\
of year $ 72,613,814 $ 41,359,390 $108,167,018 $ 9,318,854 $ 14,617,085 $ 6,007,350 $411,072,716 $ 98,614,861 $ 2,260,968 $ 14,575,223 $ 56,191 $ 12,379,100 $791,042,570
Add: additions
during the year - 2,152,344 961,454 - 1,151,572 1,992,480 7,582,341 1,4t,7W - 1,063,551 88,611 9,843,572 26,075,680
Less: disposals
during the year (75,000) (372,319) (130,445) (170,497) (744,903) - (2,378,128) (1,528) - (104,208) - (6,931,130) (10,908,158)
Balance, end of year 72,538,814 43,139,415 108,998,027 9,148,357 15,023,754 7,999,830 416,276,929 99,853,088 2,260,968 15,534,566 144,802 15,291,542 806,210,092
Accumulated
amortization
Balance, beginning
of year - 15,439,682 52,946,077 6,621,609 8,760,163 - 211,151,194 21,648,700 1,536,911 8,835,079 10,283 - 326,949,698
Add: amortization
during the year - 1,275,651 3,202,830 531,424 1,297,645 ,915,586 1,327,178 82,773 923,542 11,364 - 21,567,993
Less: accumulated
amortization on
disposals - (284,005) (99,443) (170,497) (737,802) (2,188,646) (1,528) - (104,208) - - (3,586,129)
Balance, end of year _ 16,431,328 56,049,464 6,982,536 9,320,006 ,- 221,878,134 22,974,350 1,619,684 9,654,413 21,647 - 344,931,562
Net book value of
tangible capital
assets $ 72,538,814 $ 26,708,087 $ 52,948,563 $ 2,165,821 $ 5,703,748 $ 7,999,830 $194,398,795 $ 76,878,738 $ 641,284 $ 5,880,153 $ 123,155 $ 15,291,542 $461,278,530
i
The Corporation of the Municipality of Clarington
Consolidated Schedule of Tangible Capital Assets - Schedule 1
For the Year Ended December 31, 2021
2020
General
Infrastructure
Land
Linear Road
Linear Storm
Assets under
Land Improvements
Buildings
Vehicles
Equipment
Land
& Realated
Sewers
Buildings
Vehicles
Equipment
construction
Total
Cost
Balance, beginning
�\
of year $
70,247,117 $
39,544,967
$107,436,329 $
9,653,798 $
14,090,194 $
6,007,350
$405,641,185
$ 96,087,711 $
2,360,968 $
13,944,053 $
62,506
$ 15,492,887
$780,569,065
Add: additions
-a `AF
P
during the year
2,366,698
2,066,650
960,229
41,142
1,323,419
-
13,279,880
3,020,831
mO -
865,987
20,539
10,451,338
34,396,713
Less: disposals
during the year
(1)
(252,227)
(229,540)
(376,086)
(796,528)
-
(7,848,349)
(493,681)
(100,000)
(234,817)
(26,854)
(13,565,125)
(23,923,208)
Balance, end of year
72,613,814
41,359,390
108,167,018
9,318,854
14,617,085
6,007,350
411,072,716
98,614,861
2,260,968
14,575,223
56,191
12,379,100
791,042,570
Accumulated
amortization
Balance, beginning
of year
-
14,454,357
49,964,192
6,455,806
8,244,923
-
204,095,858
20,091,808
1,552,127
8,185,380
24,764
-
313,069,215
Add: amortization
during the year
-
1,226,193
3,178,263
541,889
1,304,689
-
12,749,153
1,679,094
84,784
884,515
5,829
-
21,654,409
Less: accumulated
amortization on
disposals
-
(240,868)
(196,378)
(376,086)
(789,449)`
(5,693,817)
(122,202)
(100,000)
(234,816)
(20,310)
-
(7,773,926)
Balance, end of year
-
15,439,682
52,946,077
6,621,609
8,760,163
-
211,151,194
21,648,700
1,536,911
8,835,079
10,283
-
326,949,698
Net book value of
tangible capital
assets $
72,613,814 $
25,919,708
$ 55,220,941 $
2,697,245 $
5,856,922 $
6,007,350
$199,921,522
$ 76,966,161 $
724,057 $
5,740,144 $
45,908
$ 12,379,100
$464,092,872
31
The Corporation of the Municipality of Clarington
Consolidated Schedule of Segmented Information - Schedule 2
For the Year Ended December 31, 2021
IL
2021
General
government
services
Protection
services
Transportation
services
Environmental
services
Recreation and
Health services cultural services
Planning and
development
Consolidated
Operating revenue
Taxation and user charges
$ 72,211,175 $
3,577,400 $
1,135,785 $
232,299 $
420,075 $ 2,295,093 $
1,348,349 $
81,220,176
Grants
2,832,310
57,239
173,918
-
- 348,338
37,021
3,448,826
Other
4,726,193
(463,810)
10,451,331
357,768
55,770 3,252,599
7,483
18,387,334
Elexicon Corporation
1,617,475
-
-
-
- -
-
1,617,475
Contributed tangible capital assets
-
-
1,132,016
757,216
- 536,000
-
2,425,232
Other income
68
-
1,800
-
- -
1,002,389
1,004,257
Loss on disposal of tangible capital assets
-
10,576
(171,341)
-
- (116,934)
(75,000)
(352,699)
Total operating revenue
81,387,221
3,181,405
12,723,509
1,347,283
475,845
6,315,096
2,320,242
107,750,601
Operating expenses
Salaries and wages
4,506,014
16,839,769
8,680,540
487,152
314,515
12,861,762
4,154,528
47,844,280
Operating materials and supplies
695,541
825,376
4,407,537
430,849
201,776
4,885,505
327,757
11,774,341
Contract services
499,808
1,192,052
4,144,215
723,571
-
2,391,147
1,218,235
10,169,028
Rent and financial expenses
(363,106)
-
11,414
-
-
144,236
-
(207,456)
External transfers to others
-
7,750
-
-
-
1,083,600
-
1,091,350
Amortization expense
1,041,888
1,068,514
13,823,949
1,692,562
3,956
3,934,261
2,863
21,567,993
Interest on long-term liabilities
30,866
254,087
-
-
113,019
-
397,972
Total operating expenses
6,411,011
19,933,461
31,321,742
3,334,134
520,247
25,413,530
5,703,383
92,637,508
Annual surplus (deficit)
$ 74,976,210 $
(16,752,056) $
(18,5981233) $
(1,986,851) $
(44,402) $
(19,098,434) $
(3,383,141) $
15,113,093
AM
W
The Corporation of the Municipality of Clarington
Consolidated Schedule of Segmented Information - Schedule 2
For the Year Ended December 31, 2021
%I
2020
General
government
Protection
Transportation
Environmental
Recreation and
Planning and
services
services
services
services Health services cultural services
development
Consolidated
Operating revenue
Taxation and user charges
$ 70,129,807 $
3,048,731 $
1,570,532 $
116,180 $
329,013 $ 2,525,646 $
1,649,513 $
79,369,422
Grants
2,268,424
27,553
842,727
820
- 217,811
75,279
3,432,614
Other
3,604,055
(302,640)
7,635,014
-
63,576 1,792,409
15,037
12,807,451
Elexicon Corporation
1,063,520
-
-
-
- -
-
1,063,520
Contributed tangible capital assets
-
-
439,268
2,31 6
- 2,366,698
-
5,120,862
Other income
3,296
-
-
-
- 2,976
-
6,272
Loss on disposal of tangible capital assets
-
-
(2,120,526)
(371,478)
(1,887) (49,714)
-
(2,543,605)
Total operating revenue
77,069,102
2,773,644
8,367,015
2,060,418
390,702
6,855,826
1,739,829
99,256,536
Operating expenses
Salaries and wages
4,456,815
16,681,472
9,112,487
475,506
228,772
12,329,261
3,969,784
47,254,097
Operating materials and supplies
643,995
852,352
5,665,111
475,785
197,462
4,600,453
420,759
12,855,917
Contract services
531,120
1,014,387
4,988,905
496,737
-
2,327,739
1,963,083
11,321,971
Rent and financial expenses
159,907
-
-
-
-
102,285
3,499
265,691
External transfers to others
-
6,250
-
-
-
1,078,868
-
1,085,118
Amortization expense
1,021,421
1,049,601
13,645,050
2,022,646
2,930
3,909,898
2,863
21,654,409
Interest on long-term liabilities
32,480
-
271,032
-
-
174,464
-
477,976
Total operating expenses
6,845,738
19,604,062
33,682,585
3,470,674
429,164
24,522,968
6,359,988
94,915,179
Annual surplus (deficit)
$ 70,223,364 $
(16,830,418) $
(25,315,570) $
(1,410,256) $
(38,462) $
(17,667,142) $
(4,620,159) $
4,341,357
0.3
The Corporation of the Municipality of Clarington
Consolidated Schedule of Segmented Information - Schedule 3
For the Year Ended December 31, 2021
IL
2021 - Budget
General
government
Protection
Transportation
Environmental
Recreation and
Planning and
services
services
services
services Health services
cultural services
development
Consolidated
Operating revenue
Taxation and user charges
$ 71,692,681 $
2,054,800
$ 1,025,800
$ 168,300 $
351,100
$ 4,327,289 $
1,114,991
$ 80,734,961
Grants
903,000
22,000
697,000
-
U/
-
112,481
-
1,734,481
Other
3,265,000
415,500
8,621,240
- .
-
3,862,756
15,500
16,179,996
Contributed tangible capital assets
-
-
1,132,016
757,216
-
536,000
-
2,425,232
Total operating revenue
75,860,681
2,492,300
11,476,056
925,516
351,100
8,838,526
1,130,491
101,074,670
Operating expenses
Salaries and wages
4,781,266
16,706,911
9,785,520
487,563
395,131
14,138,084
4,589,673
50,884,148
Operating materials and supplies
844,230
1,067,066
5,611,193
464,506
125,335
5,999,426
609,521
14,721,277
Contract services
351,825
1,196,073
4,666,643
768,048
-
2,587,341
1,642,747
11,212,677
Rent and financial expenses
205,000
-
11,472
-
-
56,984
-
273,456
External transfers to others
-
10,000
-
-
-
1,236,223
-
1,246,223
Amortization expense
1,003,657
1,240,104
13,523,816
1,608,392
2,442
3,823,832
2,863
21,205,106
Interest on long-term liabilities
30,866
-
206,843
-
-
113,019
-
350,728
Total operating expense
7,216,844
20,2207154
3378057487
373287509
5227908
2779547909
678447804
99,893,615
Annual surplus (deficit)
$ 68,643,837 $
(17,727,854)
$ (22,329,431)
$ (2,402,993) $
(171,808)
$ (19,116,383) $
(5,714,313)
$ 1,181,055
4#
0
The Corporation of the Municipality of Clarington
Consolidated Schedule of Segmented Information - Schedule 3
For the Year Ended December 31, 2021
IL
2020 - Budget
General
government
services
Protection
services
Transportation
services
Environmental
services
Health services
Recreation and
cultural services
Planning and
development
Consolidated
Operating revenue
Taxation and user charges
$ 69,019,227 $
1,829,832
$ 1,015,900
$ 108,300
$ 401,100
$ 5,909,010
$ 862,300
$ 79,145,669
Grants
-
22,000
118,900
-
-
136,181
-
277,081
Other
2,496,000
249,500
11,917,558
4,961,004
18,500
3,423,747
17,500
23,083,809
Contributed tangible capital assets
-
-
439,268
2,314,896
-
2,366,698
-
5,120,862
Total operating revenue
71,515,227
2,101,332
13,491,626
7,384,200
419,600
11,835,636
879,800
107,627,421
Operating expenses
Salaries and wages
4,666,423
16,863,735
9,981,905
487,838
268,358 15,016,932
4,099,722
51,384,913
Operating materials and supplies
1,066,047
1,361,502
5,183,476
427,574
119,494 5,725,069
698,760
14,581,922
Contracted services
296,600
943,982
5,720,794
490,786
- 2,322,995
717,511
10,492,668
Rent amd financial expenses
205,000
-
-
-
- 51,919
11,000
267,919
Enternal transfers to others
-
10,000
-
��!)�13,525,271
207,195
- 1,180,304
(6,761)
1,390,738
Amortization expense
1,013,395
960,103
p
1,403,146
2,442 3,728,041
2,863
20,635,261
Interest on long-term liabilities
32,480
-
147,417
-
- 174,464
-
354,361
Total operating expense
7,279,945
20,139,322
34,558,863
3,016,539
390,294
28,199,724
5,523,095
99,107,782
Annual surplus (deficit)
$ 64,235,282 $
(18,037,990) $
(21,067,237) $
4,367,661 $
29,306 $
(16,364,088) $
(4,643,295) $
8,519,639
Q61
If this information is required in an alternate format, please contact the Accessibility Co-Ordinato t
(905) 623-3379 ext. 2131
r
MNO
e)
iF
Financial statements of
The Corporation of the
Municipality of Clarington
Trust Funds
December 31, 2021
The Corporation of the Municipality of Clarington
Trust Funds
December 31, 2021
Table of contents
Independent Auditor's Report ................................................. .F
10 .............. 1-3
Statement of financial position........................................................................... 4
Statement of operations ........................................ ...0 ........................................ 5
Notes to the financial statements ....................................................................... 6-7
JBDO
07165 Tel: 705 324 79 Canada LLP
Fax: 705 324 0774 165 Kent Street West
www.bdo.ca PO Box 358
Lindsay ON K9V 4S3 Canada
♦
Independent Audito t
To the Members of Council of the Corporation of the Municipality of Cl gto
Opinion
We have audited the financial statements of the Corporation of th�nicipali of Clarington Trust Funds
(the Entity), which comprise the statement of financial osition as ait December 31, 2021, and the
statement of operations and accumulated surplus for thear then ended, and notes to the financial
statements, including a summary of significant accou ting policies.
In our opinion, the accompanying financial stateme r fairly, in all material respects, the financial
position of the Entity as at December 31, 2021, an its o rations for the year then ended in accordance
with Canadian public sector accounting Stan
Basis for Opinion
We conducted our audit in ac nc I Canadian generally accepted auditing standards. Our
responsibilities under those Stan r re rt described in the Auditor's Responsibilities for the Audit
of the Financial Statements 5ctio Ifr report. We are independent of the Entity in accordance with
the ethical requiremenat a} �_ rel ant to our audit of the financial statements in Canada, and we have
fulfilled our other ethical respOnrilities in accordance with these requirements. We believe that the
audit evidence we haveobtaind is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of�lanagement and Those Charged with Governance for the Consolidated Financial
Statements V
�is responsible for the preparation and fair presentation of these financial statements in
with Canadian public sector accounting standards, and for such internal control as
t determines is necessary to enable the preparation of financial statements that are free
at misstatement, whether due to fraud or error.
pMaring the financial statements, management is responsible for assessing the Entity's ability to
tinue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Entity or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Entity's financial reporting process.
BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the
international BDO network of independent member firms.
JBDO
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements '0
Our objectives are to obtain reasonable assurance about whether the financial stateme is :5>�\&are free from material misstatement, whether due to fraud or error, and to issue an auditoor' rt
includes our opinion. Reasonable assurance is a high level of assurance, but is not a gu nn
audit conducted in accordance with Canadian generally accepted auditing standards ill wa detect
a material misstatement when it exists. Misstatements can arise from fraud or erroran onsidered
material if, individually or in the aggregate, they could reasonably be expected to ft a the economic
decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with Canadian generally accepteFudit.
dards, we exercise
professional judgment and maintain professional skepticism throughout te also:
• Identify and assess the risks of material misstatement of "nancial statements, whether due
to fraud or error, design and perform audit procedu s rWa
to those risks, and obtain audit
evidence that is sufficient and appropriate to pro or our opinion. The risk of not
detecting a material misstatement resultin from fra higher than for one resulting from
error, as fraud may involve collusion, forgery ten tiona omissions, misrepresentations, or the
override of internal control. _
• Obtain an understanding of internal co rot ri§675nt to the audit in order to design audit
procedures that are appropriate in t nces, but not for the purpose of expressing an
opinion on the effectiveness ofshe t' internal control.
• Evaluate the appropriateness of c policies used and the reasonableness of accounting
estimates and related di to e y management.
• Conclude on the appropri ess m agement's use of the going concern basis of accounting
and, based on the audi vi ob ined, whether a material uncertainty exists related to
events or conditions at c st significant doubt on the Entity's ability to continue as a going
concern. If w to material uncertainty exists, we are required to draw attention in
our auditor' a th related disclosures in the financial statements or, if such disclosures
are inadequat , o m 'fy our opinion. Our conclusions are based on the audit evidence obtained
up to the date o uditor's report. However, future events or conditions may cause the Entity
to cease t0000ntinue as a going concern.
valuateRie overall presentation, structure and content of the financial statements, including
disclosures, and whether the financial statements represent the underlying transactions and
a manner that achieves fair presentation.
m'Nicate with those charged with governance regarding, among other matters, the planned
1110 timing of the audit and significant audit findings, including any significant deficiencies in
control that we identify during our audit.
Chartered Professional Accountants, Licensed Public Accountants
Lindsay, Ontario
August 3, 2022
4whkh,N
The Corporation of the Municipality of Clarin ton
p p Y J
Trust Funds
Statement of financial position •
as at December 31, 2021
Due (to) from
Net Financial Assets
Investments
Interest revenue
Municipality of
and Accumulated
Cash (Note 3)
receivable
Clarington
Surplus
Advent Cemetery
- 918
-
(22)
896
Bondhead Cemetery
- 211,985
5,413
220,415
Bowmanville Cemetery
- 1,254,935
*3,bl7
2,408)
(12,934)
1,239,593
Hampton Cemetery
- 47,870
19
X
2,997
50,886
Lovekin Cemetery
- 10 000
4
(44 )
9,960
Orono Cemetery
- 286,273
5,622
(21,859)
270,036
St. George's Cemetery
- 46,993�
20
(539)
46,474
Trulls Cemetery
- ��1,774
1
(16)
1,759
Vanderveer Legacy Trust
- 1,000
-
(24)
976
- 1,861,748
6,275
(27,028)
1,840,995
Montague Trust
- 10,775
664
2,006
13,445
Estate of Irene Rinch/Newcastle Community Hall
- 147,925
8,629
(4,167)
152,387
Total - 2021
- 2,020,448
15,568
(29,189)
2,006,827
Total - 2020 1,440 1,924,801 21,255 (14,485) 1,933,011
Impact of COVID-19 (Note 5) 9
The accompanying notes are an integral part of these financial statements.
Page 4
The Corporation of the Municipality of Clarington
Trust Funds
Statement of operations and accumulated surplus
as at December 31, 2021
O�
Revenues
Care and
Balance
maintenance
Less:
Excess (shortfall)
Accumulated
beginning of
receipts Interest
C trib Mn
Investments
of revenues over
surplus, end
year
(Note 4) earned Total
to cei eries
in Capital
expenses
of year
Advent Cemetery
918
- 6 6
27
-
(21)
897
Bondhead Cemetery
205,878
15,893 1,924 rl,817
3,280
-
14,537
220,415
Bowmanville Cemetery
1,192,058
54,447 9,479 63,926
16,391
-
47,535
1,239,593
Hampton Cemetery
48,510
2,478 282 2,760
384
-
2,376
50,886
Lovekin Cemetery
9,962
- 59 59
61
-
(2)
9,960
Orono Cemetery
263,251
5,467 1,957 7,424
639
-
6,785
270,036
St. George's Cemetery
45,438
1 ;iV2 326 1,458
422
-
1,036
46,474
Trulls Cemetery
1,800
11 11
53
-
(42)
1,758
Vanderveer Legacy Trust
976
4 4
4
-
-
976
1,768,791
79,417 14,048 93,465
21,261
-
72,204
1,840,995
Montague Trust
12,437
- 1,008 1,008
-
-
1,008
13,445
Estate of Irene Rinch
151,783
- 604 604
-
-
604
152,387
Total - 2021
1,933,011
79,417 15,660 95,077
21,261
-
73,816
2,006,827
Total - 2020
1,915,328
57,395 23,864 81,259
63,576
-
17,683
1,933,011
The accompanying notes are an integral part of these financial statements
Page 5
The Corporation of the Municipality of Clarington i
Funds
u Trust F n ` 0
Notes to the financial statements
December 31, 2021
The Corporation of the Municipality of Clarington Trust Funds consist of various trust
funds administered by the Municipality of Clarington. The funds include holdings related
to the care and maintenance of cemeteries and funds bequest to the Newcastle
Community Hall.
Significant accounting policies
The financial statements of the Corporation of Municipality of Clarington Trust
Funds are the representations of management prepared in accordance with
Canadian public sector accounting standards and reflect the following policies:
Basis of accounting
Revenues are recorded in the period in which the transactions or events occurred
that gave rise to the revenue.
Expenditures are recorded in the period the goods and services are acquired and a
liability is incurred. Refunds are reported in the period issued.
Investments 11which
Investments are recorded approximates fair value.
Use of estimates
The preparation of the financial statements in conformity with Canadian public
sector accounting standards, 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 amount of revenues and expenditures during the year. Actual results could
differ from these estimates.
2. Statement of cash flows
A statement of cash flows has not been included in these financial statements as
the information is readily determinable from the financial statements presented.
3. Investments
The total investments held by the trust funds of $2,020,448 (2020 — $1,924,802)
reported on the Statement of Financial Position at cost have a fair value of
$2,024,124 (2020 - $1,944,406) at the end of the year. The investments consist of
holdings pursuant to the provisions of the Municipality's investment policy and
comprise government bonds and guaranteed investment certificates (GICs) issued
by various financial institutions. It is the Municipality's intention to hold these
investments until maturity.
Page 6
The Corporation of the Municipality of Clarington 4k
Trust Funds `
Notes to the financial statements ►'
December 31, 2021
4. Care and maintenance funds
The Care and Maintenance Funds administered by the Municipality are funded by
the sale of cemetery plots. These funds are invested, and the interest earned is
used to perform care and maintenance to the Municipality's cemeteries. The
operations and investments of the Funds are undertaken by the Municipality in
accordance with the regulations of the Cemeteries Act.
5. Impact of COVID-19
In 2021, the COVID-19 pandemic continued to severely impact many local
economies around the globe. In many countries, including Canada, organizations
and businesses were forced to cease or limit operations for long or indefinite
periods of time. Measures taken to contain the spread of the virus, including travel
bans, quarantines, social distancing, and closures of non -essential services have
triggered significant disruptions to organizations worldwide, resulting in an
economic slowdown. Global stock markets have also experienced great volatility
and a significant weakening. Governments and central banks have responded with
monetary and fiscal interventions to stabilize economic conditions.
The main impact on the Trusts stemming from the COVID-19 pandemic were lower
levels of interest earned on investments.
The ultimate duration and magnitude of the impact the pandemic will have on the
economy and the Trusts are not known at this time. These impacts potentially
include a further impairment of investments and a reduction to the transfers to the
Municipality for the operational maintenance of the cemeteries.
Page 7