HomeMy WebLinkAboutFSD-034-24Staff Report
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Report To: Council
Date of Meeting: June 24, 2024 Report Number: FSD-034-24
Submitted By:
Reviewed By:
Authored by:
Trevor Pinn, Deputy CAO/Treasurer, Finance and Technology
Mary-Anne Dempster, CAO Resolution#: C-077-24
Michelle Pick, Manager of Accounting Services/Deputy Treasurer
File Number: By-law Number:
Report Subject: 2023 Audited Financial Statements
Recommendations:
1.That Report FSD-034-24, 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, 2023,
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, 2023,
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, 2023, be
approved;
5.That the Financial Statements for the Municipality of Clarington Trusts for the year
ending December 31, 2023, be approved;
6.That the Consolidated Financial Statements for the Municipality of Clarington for the
year ending December 31, 2023, be approved;
7.That the Deputy CAO/Treasurer and Accounting Services Manager/Deputy
Treasurer be authorized to sign the required letters to finalize each of the audits;
8.That Staff prepare the Annual Financial Report for the year ending December 31,
2023, for publication;
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Report FSD-034-24
9. That the Mayor be given delegated authority to approve the final version of the
financial statements, as substantially in the form attached to Report FSD-034-24;
and
10. That all interested parties listed in Report FSD-034-24 and any delegations be
advised of Council’s decision.
Municipality of Clarington Page 3
Report FSD-034-24
Report Overview
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.
To further enhance the transparency and understandability of the Municipality’s financial
data, an Annual Financial Report is also issued. This additional information includes five-
year trends for certain financial information, provides historical context and trends 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 Finance and Technology Department staff continue to
monitor changes to PSAS as they become effective.
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
f. Newcastle Community Hall Board
g. Solina Hall Board
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Report FSD-034-24
h. Tyrone Community Hall Board
i. Clarington Heritage Committee
j. Bowmanville Santa Clause Parade Committee
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 Finance and Technology
Department.
1.5 The Finance and Technology Department drafts 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 i s 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 added five-year charts to provide a trend
analysis of certain financial information.
2. Financial Statements for the Board of Management for
Historic Downtown Bowmanville Business Improvement Area
2.1 The Statement of Financial Position of the Bowmanville BIA remained at a consistent
level for 2022.
2.2 The fundraising revenue increased by $14,157, driven by successful events, such as
Maplefest, Moonlight Magic and Applefest.
2.3 Expenses were higher in 2023 versus 2022, with a total increase of $36,457. The
increase is mainly driven by the purchase of new LED lit winter garlands and an
increase in the cost for plant watering and seasonal flower baskets.
2.4 The Bowmanville BIA has an accumulated surplus of $68,599, which is higher than the
pre-pandemic level and is, in part, a result of the surpluses in the pandemic periods.
3. Financial Statements for the Board of Management for the
Newcastle Central Business District Improvement Area
3.1 Cash and cash equivalents increased during the year by $5,130. This corresponds with
the annual surplus for 2023 of $4,769.
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Report FSD-034-24
3.2 The Newcastle BIA’s revenue was higher by $10,282 versus 2022. The fundraising
revenue increased by $10,282 during the year driven by in-person events.
3.3 Expenses are higher by $19,548, which primarily is due to increased event expenses.
3.4 The annual surplus of $4,769 increases the accumulated surplus to $80,970, which can
be utilized in future years to promote and support the Newcastle BIA.
3.5 The net financial assets of the Newcastle BIA equal the total accumulated surplus of
$80,970, as there are no non-financial assets (tangible capital assets). The Newcastle
BIA is in a strong financial position.
4. Financial Statements for the Orono Central Business District
Improvement Area
4.1 The main changes in the Orono BIA statement of financial position are a n increase of
cash of approximately $663, which is related to the annual surplus of $2,497, and a
decrease in Accounts Payable of $2,094 due to the timing of purchases.
4.2 The Orono BIA saw an increase in revenue, of $3,147 for 2023 over 2022. This was
driven mainly by an increase in fundraising activities.
4.3 The expenses were lower in 2023 as landscaping costs decreased.
4.4 The annual surplus of $2,497 increased the accumulated surplus to $10,149. The BIA
has an accumulated surplus which is sufficient to cover its liabilities.
5. Financial Statements for the Municipality of Clarington Trust
Funds
5.1 The Trust Funds are not included in the Municipality of Clarington’s consolidated
financial statements. The financial reporting follows PSAB and includes 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.
5.2 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.
5.3 During the year, $87,840 in care and maintenance receipts were received, with an
additional $99,115 of interest earned on the trust fund investments. The trusts
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Report FSD-034-24
transferred $100,280 to the Municipality for the ongoing care and maintenance of the
cemeteries.
6. Consolidated Financial Statements for the Municipality of
Clarington
Administrative
6.1 The letter stating management’s responsibility for the financial statements is a
requirement of PSAS and serves to emphasize that the financial statements are the
responsibility of the Municipality, not the auditors.
6.2 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 accounting standards.
6.3 For the fiscal year ending December 31, 2023, the Municipality was required to adopt
new financial standards. As a result, the auditors are currently undertaking additional
quality reviews of the financial statements to ensure complinace. It is expected that any
changes would be to note wording and not the numbers as presented in the
attachments to this report. Staff recommend that the Mayor be delegated authority to
approve the financial statements, provided that any possible changes be minor in nature
(ie. Does not change the bottom line), such as wording changes or formatting of notes.
Statement of Financial Position
6.4 The Statement of Financial Position is the public sector accounting equivalent of a
balance sheet. The statement provides a snapshot, as at December 31, 202 3, of the
assets, liabilities and accumulated surplus (an indicator of service capacity) specifically
on that day.
6.5 Net Financial Assets (the difference between financial assets and liabilities) increased
by approximately $0.4 million in 2022. The financial asset-to-liability ratio of 1.8:1.0
shows that the Municipality is in a position to fulfill its financial obligations. The reserve
and reserve fund balances of $68.1 million are two times higher than debenture debt,
indicating that there are sufficient resources to meet future debt obligations.
6.6 A detailed breakdown of the 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. Most of the value in the accumulated surplus
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Report FSD-034-24
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
6.7 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.
6.8 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.
6.9 The Statement of Operations, as required by PSAS, lists revenues based on like
revenue streams (e.g., taxation, user charges, grants) and expenses based on
functional segments. The functional segments for expenses follows the Province of
Ontario’s Financial Information Return (FIR) segmentation on service lines.
6.10 Information on the segments’ revenues and expenses, including expense accounting
object (e.g., salaries and wages, operating materials, contract services), are included in
Schedule 2. Current year and prior year schedules are provided to allow for year-over-
year comparisons.
6.11 Schedule 3 shows the budgeted breakdown by segment for each accounting object.
This is not a required schedule; but is included to provide additional information to
users.
6.12 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. The notes to the financial statements
contain a note disclosure on the funds which have been collected and remitted on
behalf of the other levels of government.
6.13 Investment income and deferred revenue experienced increases. Most of the deferred
revenue earned relates to development charges and is recognized when the asset is
recognized. Deferred revenue may also be recognized when grant obligations are met.
6.14 Amortization expense is a non-cash expense which allocates the capital cost of assets
across the useful life of the asset.
6.15 Overall, the expenses for the Municipality were above the 2023 budget, and higher than
2022 actuals. The increase is mainly driven by a return to full-service levels post-
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Report FSD-034-24
pandemic. It should be noted that the surplus and budget shown on the statements are
in accordance with PSAB and are not shown on the same basis that the Municipality
budgets annually (which uses a modified cash-basis).
6.16 The Statement of Operations shows an annual surplus of $6.2 million for 2023; this
compares to a $1.7 million deficit indicated in the budget column. This surplus is a result
of the differing treatment between the cash -based budget process and the accrual-
based reporting process. Included in revenue is $2.9 million, the fair market value of
assets transferred from developers (assumed subdivisions) during the year. In future
years there will be expenses related to these assets' replacement, maintenance an d
repairs. As well, there was a significant investment income variance in 202 3, driven
primarily by higher-than-expected interest rate changes.
6.17 There is a required prior period adjustment to the Accumulated Surplus which is shown
at the bottom of the statements of approximately $282,000. This adjustment is required
through the transitional provisions of the Asset Retirement Obligation Standard (ARO).
This standard requires the Municipality to recognize an liability on its estimated costs
related to legislated obligations to restore, remediate or remove the asset upon its
retirement.
Statement of Remeasurement Gains (Losses)
6.18 The Statement of Remeasurement Gains (Losses) is a new statement effective January
1, 2023 under PSAS.
6.19 The Statement shows the impacts of certain unrealized gains or losses on the financial
instruments of the Municipality. In 2023, the losses shown reflect the adjustment from
cost to market value of the portfolio investments as at December 31, 2023.
6.20 Unrealized gains and losses are not transferred to the Statement of Operations until
realized. The fluctuations in market are shown through this statement, as an indicator of
potential risk.
Statement of Changes in Net Financial Assets
6.21 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.
6.22 The statement starts with the annual surplus and backs out non-financial activities such
as amortization, accounting gains/losses, and the purchase and sale of assets.
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Report FSD-034-24
6.23 The main variance between 2023 and 2022 relates mostly to the acquisition of tangible
capital assets and the difference in the assets under construction transferred to tangible
capital assets in 2023.
6.24 Similarly to the Statement of Operations, the impact of the prior period adjustment to
transition to the ARO standard is shown at the bottom of this statement. This number
varies as a result of the fact that it is the total change, not just the amount reflected in
the period.
Statement of Cash Flows
6.25 The statement of cash flows explains how the 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.
6.26 The cash position of the Municipality increased during the year from $66.2 million in
cash to $69.3 million. During the year, operating activities contributed to an increase of
$25.1 million, this includes the receipt of receivables as well as cash (development
charges) that are restricted to be used in future years.
6.27 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 $24.8 million in cash outlays in 2023.
6.28 The Municipality investment levels increased during 2023 by $4.8 million. Dividends of
$0.7 million from our investment in Elexicon were received during the year.
6.29 Financing activities during the year included repayment of $2.0 million in the principal of
long-term debenture debt.
Changes to the Notes to the Financial Statements
6.30 As a result of the adoption of multiple new accounting standards in the 202 3 fiscal year,
there have been changes to the note disclosure requirements which have been
reflected in these statements. A summary of these changes can be found in Note 1
(a)(vii) Adoption of new accounting standards.
6.31 The most significant change in disclosure is Note 2 Financial Instruments. This note
provides information on the classification, measurement, and risk of the Municipality’s
financial instruments.
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Report FSD-034-24
7. Draft Annual Financial Report
7.1 A growing trend in municipal finance is the preparation of annual financial reports, which
provide more information for stakeholders than simply financial statements. These
documents provide narrative information, charts, graphs, five -year historical trends, and
financial discussion and analysis. This data is intended to show a greater picture of the
activity of the municipality during the year and 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.
7.2 The Financial Discussion and Analysis section of the report provides an explanation on
variances year-over-year for areas with significant changes.
7.3 The Annual Financial Report will be provided to Council during the summer, after the
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
8. Financial Considerations
Not Applicable.
9. Strategic Plan
Not Applicable
10. Concurrence
Not Applicable.
11. Conclusion
It is respectfully recommended that the financial statements for the Municipality and its
components be approved (subject to the completion of the BDO quality control review,
and possible minor wording or note disclosure adjustments), that Staff be authorized to
sign the final letters to complete the audit, and that Staff be directed to finalize the
Annual Financial Report with the approved financial statements.
Staff Contact: Michelle Pick, CPA, Accounting Services manager/Deputy Treasurer, 905-623-
3379 ext. 2605 or mpick@clarington.net.
Attachments:
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Report FSD-034-24
Attachment 1 – Draft Financial Statements for the Board of Management for Historic
Downtown Bowmanville Business Improvement Area for the year ending December 31, 2023
Attachment 2 – Draft Financial Statements for the Board of Management for the Newcastle
Central Business District Improvement Area for the year ending December 31, 2023
Attachment 3 – Draft Financial Statements for the Board of Management for the Orono Central
Business District Improvement Area for the year ending December 31, 2023
Attachment 4 – Draft Financial Statements for the Municipality of Clarington Trusts for the year
ending December 31, 2023
Attachment 5 – Draft Consolidated Financial Statements for the Municipality of Clarington for
the year ending December 31, 2023
Interested Parties:
The following interested parties will be notified of Council's decision:
TD Bank
Ministry of Municipal Affairs and Housing
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
Historic Downtown Bowmanville
Business Improvement Area
December 31, 2023
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, 2023
Table of contents
Independent Auditor’s Report....................................................................................... 1-2
Statement of financial position ........................................................................................ 3
Statement of operations ................................................................................................. 4
Statement of change in net financial assets ................................................................... 5
Statement of cash flows ……………………………………………………………………... 6
Notes to the financial statements .................................................................................... 7
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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 Rate ayer of
the Corporation of the Municipality of Clarington
Qualified Opinion
We have audited the accompanying financial statements of the Historic Downtown owmanville Business
Improvement Area of the Corporation of the Municipality of Clarington (the Entity) which comprise the
statement of financial position as at December 31, 2023, 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 desc ibed in the Basis for Qualified Opinion
section of our report, the accompanying financial stateme ts presen fairly, in all material respects, the
financial position of the Entity as at December 31, 2023, and its results of operations and its cash flows
for the year then ended in accordance with Canadian public tor accounting standards.
Basis for Qualified Opinion
The Entity derives revenue from fundraisin ac ivities the completeness of which is not susceptible to
satisfactory audit verification. Ac ordi g y, v rification of these revenues was limited to the amounts
recorded in the records of the Entity. herefore, we were not able to determine whether any adjustments
might be necessary to event and donat on evenue, annual surplus, and cash flows from operations for
the years ended December 31 2023 nd 2022, net financial assets as at December 31, 2023 and 2022,
and accumulated surplus as at J nuary 1 and December 31 for both the 2023 and 2022 years. Our audit
opinion on the financ al sta ements for the year ended December 31, 2022 was modified accordingly
because of the possible effects f this limitation in scope.
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our
responsibilities und r those standards are further described in the Auditor’s Responsibilities for the Audit
of the Fin cial 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 fulf lled o r other ethical responsibilities in accordance with these requirements. We believe that
the audit e idence we have obtained is sufficient and appropriate to provide a basis for our qualified
audit op ion.
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
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error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
Obtain an understanding of internal cont ol relevant to the audit in order to design audit
procedures that are appropriate in the rcumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Entity internal control.
Evaluate the appropriatene s of ac oun ing policies used and the reasonableness of accounting
estimates and related disclosu es made by management.
Conclude on the appropriat ness f management’s use of the going concern basis of accounting
and, based on the aud evid ce obtained, whether a material uncertainty exists related to
events or cond tions that may cast significant doubt on the Entity’s ability to continue as a going
concern. If we co clude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to he 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
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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 proc ess.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statem nts s a hole
are free from material misstatement, whether due to fraud or error, and to issue an audito s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarant e that an
audit conducted in accordance with Canadian generally accepted auditing standards will lways 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 he audit. We also:
Identify and assess the risks of material misstatement th 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 r vide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
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Chartered Professional Accountants, Licensed Public Accountants
Lindsay, Ontario
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, 2023
2023 2022
$ $
Financial assets
Cash and cash equivalents 64,641 62,034
Accounts receivable --
HST receivable 3,958 6,481
Total financial assets 68,599 68,515
Liabilities
Accounts payable -8
Total liabilities -8
Net financial assets 68,599 68,507
Accumulated surplus (deficit) 68,599 68,507
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
Yas at December 31, 2023
Budget 2023 2022
$ $ $
Revenues
Taxation - Municipality of Clarington 175,916 175,916 171,625
Grant - Municipality of Clarington
Interest
Fundraising -65,247 51,090
Total revenues 175,916 241,163 222,715
Expenses
Administration 10,500 15,341 5,176
Events and promotion 91,000 104,636 104,143
Salaries and wages 82,200 65,200 60,150
Streetscape 32,750 55,894 35,145
Capital works 21,500 --
Total expenses 237,950 241,071 204,614
Annual surplus (deficit) (62,034) 92 18,101
Accumulated surplus, beginning of year 68,507 68,507 50,406
Accumulated surplus (deficit), end of year 6,473 68,599 68,507
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, 2023
Budget 2023 2022
$$ $
Annual surplus (deficit) (62,034) 92 18,101
Change in prepaid expenses ---
Change in net financial assets (62,034) 92 18,101
Net financial assets, beginning of year 68,507 68,507 50,406
Net financial assets (liabilities), end of yea 6,473 68,599 68,507
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, 2023
2023 2022
$ $
Operating activities
Annual surplus 92 18,101
Changes in non-cash operating items
Decrease (increase) due from Government of Canada 2,523 (1,340)
Increase (decrease) in accounts payable and accrued liabilitie (8) (5,989)
2,607 10,772
Net increase in cash 2,607 10,772
Cash, beginning of year 62,034 51,262
Cash, end of year 64,641 62,034
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
Area
Notes to the financial statements
December 31, 2023
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”).
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
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
Newcastle Central Business
District Improvement Area
December 31, 2023
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, 2023
Table of contents
Independent Auditor’s Report....................................................................................... 1-2
Statement of financial position ........................................................................................ 3
Statement of operations ................................................................................................. 4
Statement of change in net financial assets ................................................................... 5
Statement of cash flows ………………………………………………………………………. 6
Notes to the financial statements .................................................................................... 7
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Independent Auditor's Report
To the Members of the Corporation of the Municipality of Clarington Board of Mana ement fo the
Newcastle Central Business District Improvement Area, Members of Council, Inhabitants and Ratepayers
of the Municipality of Clarington
Qualified Opinion
We have audited the accompanying financial statements of the Newcas le Ce tral Business District
Improvement Area of the Corporation of the Municipality of Clarington (the E tity), which comprise the
statement of financial position as at December 31, 2023, and the statements of operations, changes in
net financial assets and cash flows for the year then ended, and note to the financial statements,
including a summary of significant accounting policies.
In our opinion, except for the possible effects of the m tter describ d in the Basis for Qualified Opinion
section of our report, the accompanying financial stateme ts present fairly, in all material respects, the
financial position of the Entity as at December 31, 2023, and its results of operations and its cash flows
for the year then ended in accordance with Canadia publi sector accounting standards.
Basis for Qualified Opinion
The Entity derives revenue from f nd aising a ivities the completeness of which is not susceptible to
satisfactory audit verification. Accor ingly, verif cation of these revenues was limited to the amounts
recorded in the records of the Entity The fore, we were not able to determine whether any adjustments
might be necessary to event a d dona ion revenue, annual surplus, and cash flows from operations for
the years ended December 31, 2023 and 2022, net financial assets as at December 31, 2023 and 2022,
and accumulated surp us a at January 1 and December 31 for both the 2023 and 2022 years. Our audit
opinion on the financial statements for the year ended December 31, 2022 was modified accordingly
because of the possible effects of this limitation in scope.
We conducted ou audit in accordance with Canadian generally accepted auditing standards. Our
responsib ies under those standards are further described in the Auditor’s Responsibilities for the Audit
of the F nanc al 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 fu filled our other ethical responsibilities in accordance with these requirements. We believe that
the udi evidence we have obtained is sufficient and appropriate to provide a basis for our qualified
audit pinion.
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
rt
a ement fo theage ent for the
ants and Ratepayersnd Rate aye
ewcas le Ce tral Businstle Central B
gton (the E tity), whichEntit
he statements of operaate of o
ed, and note to the fid tes
m tter describ d in thatter ribed
stateme ts present faiments
31, 2023, and its result2023, nd its
Canadia publi sectoran p lic
m f nd aising a ivitiesfundraising activ
n. Accor ingly, verif cacordin , v ific
the Entity The fore, wty. Therefo
event a d dona ion revvent and natio
ember 31, 2023 and 20emb 3 , 2023 an
surp us a at January 1plus as at Ja
financial statements fl eme
he possible effects of thffects
nducted ou audit indu ur a
onsib ies under thosensibiliti
f the F nanc al StatemeFin ncial S
the ethical requiremeeth cal r qui
have fu filled our oave fulfi ed
the udi evidethe au it e
audit piniona it opi
Respones
Ma
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.
ts
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error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
Obtain an understanding of internal cont ol relevant to the audit in order to design audit
procedures that are appropriate in the rcumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Entity internal control.
Evaluate the appropriatene s of ac oun ing policies used and the reasonableness of accounting
estimates and related disclosu es made by management.
Conclude on the appropriat ness f management’s use of the going concern basis of accounting
and, based on the aud evid ce obtained, whether a material uncertainty exists related to
events or cond tions that may cast significant doubt on the Entity’s ability to continue as a going
concern. If we co clude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to he 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
forgery, intentional omry, entiona
ternal cont ol relevantcontrol rele
ate in the rcumstancee in t e cir m
ss of the Entity internEntity’s in
ene s of ac oun ing poness of accountin
d disclosu es made by mclosure ad by
ppropriat ness f manp teness of
the aud evid ce obtthe audit e den
nd tions that may cast sditi that may c
If we co clude that a me conclude t
ditor’s report to he relr o th
inadequate, to modify omod
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 proc ess.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statem nts s a hole
are free from material misstatement, whether due to fraud or error, and to issue an audito s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarant e that an
audit conducted in accordance with Canadian generally accepted auditing standards will lways 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 he audit. We also:
Identify and assess the risks of material misstatement th 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 r vide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
m nts s a holemen as a whole
audito s report thatr’s repo th
ot a guarant e that anarantee tha
ndards will lways deteds wi al ys
or error and are considrror a d are
ected to influence the eo influen
epted auditing standang s
hroughout he audit. Wghout th
ment th financial stt of he f anc
cedures responsive to thsponsi
to r vide a basis forprov basi
lting from fraud is highfrom fr
up to the d of our aud itor’s report. However, future events or conditions may cause the Entity
continue asa a going concern.
ll presentation, structure and content of the financial statements, including
and whether the financial statements represent the underlying transactions and
anner that achieves fair presentation.
e with those charged with governance regarding, among other matters, the planned
ing of the audit and significant audit findings, including any significant deficiencies in
ate
to cease to
E a uate the overa
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ev nts in a m
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Chartered Professional Accountants, Licensed Public Accountants
Lindsay, Ontario
The Corporation of the Municipality of Clarington
Board of Management for the Newcastle Central
Business District Improvement Area
Statement of financial position
as at December 31, 2023
2023 2022
$ $
Financial assets
Cash 81,846 76,716
Accounts receivable -100
Total financial assets 81,846 76,816
Liabilities
Accounts payable 876 615
Deferred revenue --
Total liabilities 876 615
Net financial assets (liabilities) 80,970 76,201
Accumulated surplus (deficit) 80,970 76,201
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
for the year ended December 31, 2023
2023 2022
Budget Actual Actual
$ $ $
Revenues
Taxation - Municipality of Clarington 40,000 40,000 40,000
Grant - Municipality of Clarington
Grant - Government of Canada
Fundraising 43,259 32,977
Transfer from Municipality of Clarington
Miscellaneous
Total revenues 40,000 83,259 72,977
Expenses
Administration 2,000 4,419 4,086
Advertising 10,000 10,006 9,309
Events 5,000 43,705 28,903
Downtown safety and décor 23,000 20,360 16,644
Total expenses 40,000 78,490 58,942
Annual surplus (deficit) -4,769 14,035
Accumulated surplus, beginning of year 76,201 76,201 62,166
Accumulated surplus, end of year 76,201 80,970 76,201
The accompanying notes are an integral part of these financial statements.
Page 4
The Corporation of the Municipality of Clarington
Board of Management for Newcastle Central
Business District Improvement Area
Statement of change in net financial assets
as at December 31, 2023
Budget 2023 2022
$ $ $
Annual surplus (deficit) -4,769 14,035
Change in net financial assets -4,769 14,035
Net financial assets, beginning of year 76,201 76,201 62,166
Net financial assets (liabilities), end of year 76,201 80,970 76,201
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, 2023
2023 2022
$ $
Operating activities
Annual surplus 4,769 14,035
Non cash items
Amortization of tangible capital assets --
Changes in non-cash operating items
Decrease (increase) in accounts receivable 100 (30)
Increase (decrease) in accounts payable and accrued liabilities 261 (515)
Increase (decrease) in deferred revenue --
5,130 13,490
Capital activity
Acqusition of tangible capital assets --
Net increase in cash 5,130 13,490
Cash, beginning of year 76,716 63,226
Cash, end of year 81,846 76,716
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 Newcastle Central
Business District Improvement Area
Notes to the financial statements
December 31, 2023
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
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
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, 2023
The Corporation of the Municipality of Clarington
Board of Management for the Orono Central
Business District Improvement Area
December 31, 2023
Table of contents
Independent Auditor’s Report....................................................................................... 1-2
Statement of financial position ........................................................................................ 3
Statement of operations ................................................................................................. 4
Statement of change in net financial assets ................................................................... 5
Statement of cash flows ……………………………………………………………………….6
Notes to the financial statements .................................................................................... 7
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Independent Auditor's Report
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
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 E tity), which comprise the
statement of financial position as at December 31, 2023, and the statements o operations, changes in
net financial assets and cash flows for the year then ended, and not s to the financial statements,
including a summary of significant accounting policies.
In our opinion, except for the possible effects of the matter descri d 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, 2023, an its results of operations and its cash flows
for the year then ended in accordance with Canadia public sector accounting standards.
Basis for Qualified Opinion
The Entity derives revenue from f nd aisi g a tivities the completeness of which is not susceptible to
satisfactory audit verification. Accor ingly, verif cation of these revenues was limited to the amounts
recorded in the records of the Entity Th fore, we were not able to determine whether any adjustments
might be necessary to event a d dona ion revenue, annual surplus, and cash flows from operations for
the years ended December 31, 2 23 and 2022, net financial assets as at December 31, 2023 and 2022,
and accumulated surp us a at January 1 and December 31 for both the 2023 and 2022 years. Our audit
opinion on the financial statements for the year ended December 31, 2022 was modified accordingly
because of the possible effects of this limitation in scope.
We conducted ou audit in accordance with Canadian generally accepted auditing standards. Our
responsib i ies under those standards are further described in the Auditor’s Responsibilities for the Audit
of the nancial Statements section of our report. We are independent of the Entity in accordance with
the ethic l requirements that are relevant to our audit of the financial statements in Canada, and we
have f lfilled our other ethical responsibilities in accordance with these requirements. We believe that
the audi evidence we have obtained is sufficient and appropriate to provide a basis for our qualified
audit pinion.
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
rt
ent for Oronoent r O ono
tepayers of theers of th
Orono Central Businno Central B
gton (the E tity), whichEnti
he statements o operaof o
d, and not s to the fid notes
matter descri d in thatte ribed
statements present fairment
31, 2023, an its result2023, nd its
Canadia public sectoran lic
m f nd aisi g a tivitiesfundraising acti
n. Accor ingly, verif catrdin v ific
he Entity Th fore, wity. Therefo w
vent a d dona ion reveen and natio
ember 31, 2 23 and 202mb 3 2023 an
surp us a at January 1plu as at Ja
financial statements fl eme
he possible effects of thffects
nducted ou audit indu ur a
onsib i ies under thosensibiliti
the nancial Statemee Fin ncial
the ethic l requiremeethical r quir
have f lfilled our otave fulfi led
the audi evidenthe au it e
audit pinion.it opi
Responses
Ma
management determines is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
ts
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edures re ve
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error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
Obtain an understanding of internal cont ol relevant to the audit in order to design audit
procedures that are appropriate in the rcumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Entity internal control.
Evaluate the appropriatene s of ac oun ing policies used and the reasonableness of accounting
estimates and related disclosu es made by management.
Conclude on the appropriat ness f management’s use of the going concern basis of accounting
and, based on the aud evid ce obtained, whether a material uncertainty exists related to
events or cond tions that may cast significant doubt on the Entity’s ability to continue as a going
concern. If we co clude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to he 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
forgery, intentional omry, entiona
ternal cont ol relevantcontrol rele
ate in the rcumstancee in t e cir m
ss of the Entity internEntity’s in
ene s of ac oun ing poness of accountin
d disclosu es made by mclosure ad by
ppropriat ness f manp teness of
the aud evid ce obtthe audit e den
nd tions that may cast sditi that may c
If we co clude that a me conclude t
ditor’s report to he relr o th
inadequate, to modify omod
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 proc ess.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statem nts s a hole
are free from material misstatement, whether due to fraud or error, and to issue an audito s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarant e that an
audit conducted in accordance with Canadian generally accepted auditing standards will lways 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 he audit. We also:
Identify and assess the risks of material misstatement th 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 r vide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
m nts s a holemen as a whole
audito s report thatr’s repo th
ot a guarant e that anarantee tha
ndards will lways deteds wi al ys
or error and are considrror a d are
ected to influence the eo influen
epted auditing standang s
hroughout he audit. Wghout th
ment th financial stt of he f anc
cedures responsive to thsponsi
to r vide a basis forprov basi
lting from fraud is highfrom fr
up to the d of our aud itor’s report. However, future events or conditions may cause the Entity
continue asa a going concern.
ll presentation, structure and content of the financial statements, including
and whether the financial statements represent the underlying transactions and
anner that achieves fair presentation.
e with those charged with governance regarding, among other matters, the planned
ing of the audit and significant audit findings, including any significant deficiencies in
ate
to cease to
E a uate the overa
he d closures,
ev nts in a m
We communicat
scop nd tim
ternal control that we identify during our audit.tin
ateate
to cease toto o c
E a uate the overaEvalua
he d closures,the disclos
ev nts in a mvent i
We communicatWe commu
scop nd timpe an
ernal cote
Chartered Professional Accountants, Licensed Public Accountants
Lindsay, Ontario
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, 2023
2023 2022
$ $
Financial assets
Cash and cash equivalents 11,629 10,966
Accounts receivable -260
Total financial assets 11,629 11,226
Liabilities
Accounts payable 1,480 3,574
Total liabilities 1,480 3,574
Net financial assets 10,149 7,652
Accumulated surplus (deficit) 10,149 7,652
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 Orono Central
Business District Improvement Area
Statement of Operations
for the year ended December 31, 2023
Budget 2023 2022
$ $ $
Revenues
Taxation - Municipality of Clarington (Note 1) 6,000 6,000 6,000
Grants - Other --6,804
Donations/fundraising/miscellaneous -12,913 9,462
Contr fr reserve funds 6,500 6,500 -
Total revenues 12,500 25,413 22,266
Expenses
Advertising and promotion 9,282 16,261 10,284
Landscaping 6,986 6,133 15,215
Miscellaneous 1,420 522 1,752
Total expenses 17,688 22,916 27,251
Annual surplus (deficit) (5,188) 2,497 (4,985)
Accumulated surplus, beginning of year 7,652 7,652 12,637
Accumulated surplus, end of year 2,464 10,149 7,652
The accompanying notes are an integral part of these financial statements.
Page 4
The Corporation of the Municipality of Clarington
Board of Management for Orono Central
Business District Improvement Area
Statement of Change in Net Financial Assets
as at December 31, 2023
Budget 2023 2022
$ $ $
Annual surplus (deficit) (5,188) 2,497 (4,985)
Net financial assets, beginning of year 7,652 7,652 12,637
Net financial assets (liabilities), end of year 2,464 10,149 7,652
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
Business District Improvement Area
Statement of Cash Flows
for the year ended December 31, 2023
2023 2022
$ $
Operating activities
Annual surplus 2,497 (4,985)
Changes in non-cash operating items
Decrease (increase) in accounts receivable 260 (260)
Increase (decrease) in accounts payable and accrued liabilities (2,094) 2,610
663 (2,635)
Net increase in cash 663 (2,635)
Cash, beginning of year 10,966 13,601
Cash, end of year 11,629 10,966
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
Business District Improvement Area
Notes to the financial statements
December 31, 2023
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
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 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
If this information is required in an alternate format, please contact the Accessibility Co-Ordinator at
(905) 623-3379 ext. 2131
Financial statements of
The Corporation of the
Municipality of Clarington
Trust Funds
December 31, 2023
The Corporation of the Municipality of Clarington
Trust Funds
December 31, 2023
Table of contents
Independent Auditor’s Report....................................................................................... 1-2
Statement of financial position ........................................................................................ 3
Statement of operations ................................................................................................. 4
Notes to the financial statements ................................................................................. 5-6
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continue as a going concern, disclosing, as applicable, matters related to going concern and using the
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To the Members of Council of the Corporation of the Municipality of Clarington
We have audited the financial statements of the Corporation of the Municipality of Clarington T ust Funds
(the Entity), which comprise the statement of financial position as at December 31, 2023, and t
statement of operations and accumulated surplus for the year then ended, and tes to he financial
statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
financial position of the Entity as at December 31, 2023, and its operations fo 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 Financial Statements section of our report. We e 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 acc rdance with these requirements. We believe that
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Statements
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Responsibilities of Management andn ThTosoeee CCChhhaaarrrgggeeeddd wiwtthh Governance for the Consolidated Financial
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accordance with Canadid panappuuubbblilc sc eeeccctttooorrr acacounting standards, and for such internal control asc
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Auditor’s Responsibilities for the Audit of the Consolidated 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 ann
audit conducted in accordance with Canadian generally accepted auditing standards will always detect
Identify and assess the risks of material misstatement of the financial state ent
to fraud or error, design and perform audit procedures responsive to t btain audit
evidence that is sufficient and appropriate to provide a basis fo r our of not
detecting a material misstatement resulting from fraud is higgher t llting from
error, as fraud may involve collusion, forgery, intentional omission tions, or the
override of internal control.
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decisions of users taken on the basis of these financial statements.
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professional judgment and maintain professional skepticism throughout
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procedures that are appropriate in the circumstances, but not fo the purpose of expressing an
opinion on the effectiveness of the Entity’s internal co rol.
Evaluate the appropriateness of accounting policies used nd the reasonableness of accounting
estimates and related disclosures made by mana ment.
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 doub on the Entity’s ability to continue as a going
concern. If we conclude that a material un ertainty exists, we are required to draw attention in
our auditor’s report to the related discl sure in the financial statements or, if such disclosures
are inadequate, to modify our opinio Our conclusions are based on the audit evidence obtained
up to the date of our audito ’s repo t. H wever, future events or conditions may cause the Entity
to cease to continue as a goin conc rn.
Evaluate the overall presen atio structure and content of the financial statements, including
the disclosures, and wh ther t e 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 a t and significant audit findings, including any significant deficiencies in
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Chartere Profes
Lindsay, Ontario
Chartere ProfesCharte ed P
Lindsay, OntLi dsay
sional Accountants, Licensed Public Accountants
The Corporation of the Municipality of Clarington
Trust Funds
Statement of financial position
as at December 31, 2023
Due (to) from Net Financial Assets
Investments Interest revenue Municipality of and Accumulated
Cash (Note 3) receivable Clarington Surplus
Advent Cemetery -918 4 -922
Bondhead Cemetery -260,685 1,116 6,017 267,818
Bowmanville Cemetery -1,342,920 5,751 4,298 1,352,969
Hampton Cemetery -51,520 221 -51,741
Lovekin Cemetery -10,000 44 -10,044
Orono Cemetery -312,750 1,340 -314,090
St. George's Cemetery -50,190 215 -50,405
Trulls Cemetery -1,774 7 -1,781
Vanderveer Legacy Trust -1,000 4 -1,004
-2,031,757 8,702 10,315 2,050,774
Montague Trust -11,169 237 -11,406
Estate of Irene Rinch/Newcastle Community Hall -153,339 3,236 -156,575
Total - 2023 -2,196,265 12,175 10,315 2,218,755
Total - 2022 -2,108,808 19,147 4,125 2,132,080
The accompanying notes are an integral part of these financial statements.
Page 3
The Corporation of the Municipality of Clarington
Trust Funds
Statement of operations and accumulated surplus
as at December 31, 2023
Advent Cemetery
Bondhead Cemetery
Bowmanville Cemetery
Hampton Cemetery
Lovekin Cemetery
Orono Cemetery
St. George's Cemetery
Trulls Cemetery
Vanderveer Legacy Trust
Montague Trust
Estate of Irene Rinch
Total - 2023
Total - 2022
Revenues
Care and
Balance maintenance Less: Excess (shortfall) Accumulated
beginning of receipts Interest Contribution Investments of revenues over surplus, end
year (Note 4) earned Total to cemeteries in Capital expenses of year
921 -44 44 43 -1 922
238,997 28,523 11,641 40,164 11,343 -28,821 267,818
1,307,195 44,525 61,896 106,421 60,647 -45,774 1,352,969
50,221 1,472 2,354 3,826 2,306 -1,520 51,741
10,035 -466 466 457 -9 10,044
309,593 12,260 15,326 27,586 23,089 -4,497 314,090
49,300 1,060 2,312 3,372 2,267 -1,105 50,405
1,780 -83 83 82 -1 1,781
1,003 -47 47 46 -1 1,004
1,969,045 87,840 94,169 182,009 100,280 -81,729 2,050,774
11,070 -336 336 --336 11,406
151,965 - 4,610 4,610 --4,610 156,575
2,132,080 87,840 99,115 186,955 100,280 -86,675 2,218,755
2,006,827 122,572 33,212 155,784 30,531 -125,253 2,132,080
The accompanying notes are an integral part of these financial statements
Page 4
The Corporation of the Municipality of Clarington
Trust Funds
Notes to the financial statements
December 31, 2023
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.
1. 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
Investments are recorded at a cost which 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 $2,196,265 (2022 – $2,108,808)
reported on the Statement of Financial Position at cost have a fair value of
$2,205,535 (2022 - $2,123,103) at the end of the year. The investments consist of
holdings pursuant to the provisions of the Municipality’s investment policy and
comprise guaranteed investment certificates (GICs) issued by a financial institution.
It is the Municipality’s intention to hold these investments until maturity.
Page 5
The Corporation of the Municipality of Clarington
Trust Funds
Notes to the financial statements
December 31, 2023
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.
Page 6
If this information is required in an alternate format, please contact the Accessibility Co-ordinator at
905-623-3379 ext. 2131
The Corporation of the Municipality of Clarington
Consolidated Financial Statements
December 31, 2023
The Corporation of the Municipality of Clarington
December 31, 2023
Table of Contents
Page
Consolidated Financial Statements
Management's Responsiblity for the Consolidated Finanacial Statements 1
Independent Auditor's Report 2 -3
Consolidated Statement of Financial Position 4
Consolidated Statement of Operations 5
Consolidated Statement of Remeasurement Gains (Losses) 6
Consolidated Statement of Change in Net Financial Assets 7
Consolidated Statement of Cash Flows 8
Notes to the Consolidated Financial Statements 9 -38
Consolidated Schedule of Tangible Capital Assets - Schedule 1 39 -40
Consolidated Schedule of Segmented Information - Actual - Schedule 2 41 -42
Consolidated Schedule of Segmented Information - Budget - Schedule 3 43 -44
The Corporation of the Municipality of Clarington
December 31, 2023
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 audited 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.
Council is responsible for ensuring that management fulfills its responsibility for financial
reporting and internal control. Council 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 external auditor reviews the consolidated financial statements and discusses any
significant financial reporting or internal control matters prior to the approval of the
consolidated financial statements by Council.
Trevor Pinn, CPA, CA Michelle Pick, CPA, CGA
Deputy CAO / Treasurer Accounting Services Manager / Deputy Treasurer
June 13, 2024 June 13, 2024
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To the Members of Council of the Corporation of the Municipality of Clarington
Opinion
e as a going concern, disclosing, as applicable, matters related to going concern and
as manage ment determines
mamm mama
is necessary to enable the preparation of consolidated financial statements
that are free fro terial mis statement, whether due to fraud or error.
In preparin t
ability to continu
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to cease operation
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he consolidated financial statements, management is responsible for assessing the Group’s
Responsibilities of Man a an ose Ch arged with Governance for the Consolidated Financial
Statements
In our opinion, the accompanying consolidated financial st atements present fairly, in all material
respects, the consolidated financial position
adian gene
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of the Group as aat December 31, 2023, and its consolidated
results of operations, its consolidated change in net finannciall assets, and its con solidated cash flows for
the year then ended in accordance with Canadian publlic sector accounting staandards.
We conducted our audit in accordance witth Can rally accepted auditing standards. Our
responsibilities under those standards are furth n the Auditor’s Responsibilities for the Audit
of the Consolidated Financial Stateme se our report. We are independent of the Group in
accordance with the ethical require men levan t to our audit of the consolidated financial
statements in Canada, and we hav er ethicalt responsibilities in accordance with these
requirements. We believe that e we have obtained is sufficient and appropriate to
provide a basis for our opinioon.
We have audited the consolidated financial statements of the Corporation of the
Clarington and its entities (the Group), which comprise the consolidated statement of financial ppositiion
as at December 31, 2023, and the consolidated statement of operations, th
Municipality of
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change in net financial assets and the consolidated statement of cash fllows ear then ended,
and notes to the consolidated financial statements, including a summar cant accountinga
policies.
Basis for Opinion
Management is respo the preparation and fair presentation of the consolidated financial
statements in accordance ian public sector accounting standards, and for such internal control
rn basis of accounting unless management either intends to liquidate the Group or
s, or has no realistic alternative but to do so.
d with governance are responsible for overseeing the Group’s financial reporting process.
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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 auditoor’s
report that includes our opinion. Reasonable assurance is a high level
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detect a material misstatement when it exists. Misstatements can arise from fraud or err
considered material if, individually or in the aggregate, they could reasonably be expectee
the economic decisions of users taken on the basis of these consolidated financial state
As part of an audit in accordance with Canadian generally accepted auditing stand
professional judgment and maintain professional skepticism throughout the aud it. W
Identify and assess the risks of material misstatement of the consolidat tatemments,
whether due to fraud or error, design and perform audit procedures r e to thoose risks,
and obtain audit evidence that is sufficient and appropriate to pr for ouro opinion.
The risk of not detecting a material misstatement resulting from d is higherr than for one
resulting from error, as fraud may involve collu iiiusion , forgery, ntentional omissions,
misrepresentations, or the override of internal controol.
Obtain an understanding of internal control rel evaant to the auddit 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 int ernal control.
Evaluate the appropriateness of accounting polici s 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 events or conditions
may cause the Group to cease to continue as a going concern.
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
ng polici s used and thicies
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management’s use of teme s u
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cast significant doubt oast nificant d
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roup to cease to continto c se to co
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s, including the discloinc uding th d
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or business aaacctivities withint the Group to express an opinion on the consolidated financial
sstatements. WWe are reesponsible for the direction, supervision and performance of the group
audi
scope and tim
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scope and timope and tim
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. We remain so lely responsible for our audit opinion.
We communicate with thoset charged with governance regarding, among other matters, the planned
ing of the audit and significant audit findings, including any significant deficiencies in
trol thath we identify during our audit.
Cha rtered Professional Accountants, Licensed Public Accountants
Lindsay, OntarioL
3
The Corporation of the Municipality of Clarington
Consolidated Statement of Financial Position
As at December 31, 2023
Financial assets
Cash and cash equivalents $ 69,266,929 $ 66,161,067
Investments (Note 5) 153,213,884 158,112,846
Accounts receivable 13,213,701 11,429,392
Taxes receivable (Note 6) 13,064,048 10,394,135
Inventories for resale 9,208 9,636
Inventory - surplus land 146,349 146,349
Promissory notes receivable (Note 7) 8,321,000 8,321,000
Investment in Elexicon Corporation (Note 8) 19,579,036 20,258,934
Total financial assets 276,814,155 274,833,359
2023 2022
Liabilities
Accounts payable and accrued liabilities 13,531,048 11,115,311
Employee future benefits liabilities (Note 9) 9,933,158 9,902,896
Debenture debt (Note 11) 30,337,689 32,312,792
Other long-term liabilities - ARO 449,907 -
Deferred revenue - general 20,508,114 21,443,515
Deferred revenue - obligatory reserve funds (Note 13) 83,818,835 82,188,877
Total liabilities 158,578,751 156,963,391
Net financial assets 118,235,404 117,869,968
Non-financial assets
Investment in tangible capital assets (Note 19) (Schedule 1) 465,854,595 461,450,953
Prepaid expenses 2,205,443 2,077,729
Inventory supplies 824,867 674,008
Total non-financial assets 468,884,905 464,202,690
Accumulated operating surplus (Note 20) 587,120,309 582,072,658
Remeasurement Gains/Losses 828,517 -
Accumulated surplus $587,948,826 $582,072,658
Contingencies (Note 15) and Contractual Commitments (Note 16)
The accompanying notes are an integral part of these consolidated financial statements.
4
The Corporation of the Municipality of Clarington
Consolidated Statement of Operations
For the year ended December 31, 2023
2023 2023 2022
Budget Actual Actual
(Note 22)
Revenues
Taxation and user charges
Property taxation $ 73,774,198 $ 73,770,910 $ 69,694,792
Taxation from other governments 4,771,065 4,785,994 4,766,210
User charges 11,512,006 13,840,006 13,387,305
Grants
Government of Canada -315,410 597,534
Province of Ontario 134,481 945,004 996,099
Other
Deferred revenue earned 14,911,363 15,014,844 8,660,096
Investment income 2,078,900 5,868,924 5,452,665
Penalty and interest on taxes 1,500,000 1,935,206 1,571,377
Fines 297,250 485,587 427,488
Donations and contribution from others 29,500 560,917 471,647
Elexicon Corporation
Equity share of net income -462 1,959,096
Contributed tangible capital assets 2,886,036 2,886,036 7,524,869
Other income -4,878 6,299
Loss on disposal of tangible capital assets -(180,520) (271,569)
Total revenue 111,894,799 120,233,658 115,243,908
Expenses
General government services 9,414,834 9,352,939 8,094,774
Protection services 22,663,222 22,711,063 20,758,814
Transportation services 33,082,152 33,698,893 32,271,115
Enviromental services 3,682,926 3,805,726 3,734,759
Health services 905,810 1,006,906 672,259
Recreation and cultural services 34,429,478 35,254,345 28,938,043
Planning and development services 9,407,422 8,245,810 6,445,186
Total expenses 113,585,844 114,075,682 100,914,950
Annual surplus (1,691,045) 6,157,976 14,328,958
Accumulated surplus, beginning of year 582,072,658 582,072,658 567,743,700
Prior period adjustment - ARO -(281,808) -
Accumulated surplus, end of year $580,381,613 $587,948,826 $582,072,658
The accompanying notes are an integral part of these consolidated financial statements.
5
The Corporation of the Municipality of Clarington
Consolidated Statement of Remeasurement Gains (Losses)
For the Year Ended December 31, 2023
2023 2022
Accumulated remeasurement gains (losses), beginning of year $ -$ -
Unrealized gains (losses) attributable to:
Foreign exchange --
Derivatives --
Portfolio investments (828,517) -
Remeasurement gains (losses) (828,517) -
Amounts reclassified to the statement of operations:
Foreign exchange --
Derivatives --
Portfolio investments --
--
Proportion of other comprehensive income from investment in government
enterprise --
Accumulated remeasurement gains (losses), end of year $(828,517) $ -
The accompanying notes are an integral part of these consolidated financial statements.
6
The Corporation of the Municipality of Clarington
Consolidated Statement of Change in Net Financial Assets
For the year ended December 31, 2023
2023 2023 2022
Annual surplus
Amortization of tangible capital assets
Acquisition of tangible capital assets
Investment in assets under construction
Assets under construction transferred to tangible
capital assets
Net book value of tangible capital assets disposals
/ adjustments
Decrease in prepaid expenses
Decrease in inventory supplies
Net change in remeasurement gains (losses) for
the year
Increase(decrease) in net financial assets
Budget Actual
$ (1,691,045) $ 6,157,976
21,762,570 23,218,292
(28,285,205) (24,387,547)
- (11,529,685)
-8,170,591
-280,484
-(127,712)
-(150,859)
-(828,517)
(8,213,680) 803,023
Actual
$ 14,328,958
22,803,898
(25,733,309)
(8,986,977)
11,201,368
542,597
(1,169,125)
(91,794)
-
12,895,616
Net financial assets, beginning of year
Prior period adjustment net finanical assets - ARO
117,869,968 117,869,968
-(437,587)
104,974,352
-
Net financial assets, end of year $ 109,656,288 $118,235,404 $117,869,968
The accompanying notes are an integral part of these consolidated financial statements.
7
The Corporation of the Municipality of Clarington
Consolidated Statement of Cash Flows
For the year ended December 31, 2023
2023 2022
Operating activities
Annual surplus $ 6,157,976 $ 14,328,958
Non cash items
Amortization of tangible capital assets
Loss on disposal of tangible capital assets
Equity share of Elexicon Corporation net income
Contributed tangible capital assets recorded in revenue
Accretion expense
23,218,292
180,520
(462)
(2,886,036)
12,320
22,803,898
271,569
(1,959,096)
(7,524,869)
-
Change in non-cash operating items
Accounts receivable
Taxes receivable
Inventories for resale
Accounts payable and accrued liabilities
Employee future benefits liabilities
Deferred revenue - general
Deferred revenue - obligatory reserve funds
Prepaid expenses
Inventory supplies
(1,784,309)
(2,669,913)
428
2,415,737
30,262
(935,401)
1,629,958
(127,712)
(150,859)
(3,590,888)
(1,608,915)
20,071
1,816,696
360,757
3,997,651
12,784,783
(1,169,122)
(91,794)
25,090,801 40,439,699
Capital activities
Acquisition of tangible capital assets (net of contributed)
Proceeds on disposal of tangible capital assets
(24,860,605)
99,964
(15,994,053)
271,028
(24,760,641) (15,723,025)
Investing activities
Increase in investments
Dividends received from Elexicon Corporation
4,070,447
680,361
(61,685,876)
845,288
4,750,808 (60,840,588)
Financing activities
Repayment of long term liabilities
Proceeds of debenture issue
(1,975,103)
-
(1,775,922)
26,402,000
(1,975,103) 24,626,078
Net increase (decrease), of cash and cash equivalents
Cash and cash equivalents, beginning of year
3,105,865
66,161,064
(11,497,836)
77,658,903
Cash and cash equivalents, end of year $ 69,266,929 $ 66,161,067
The accompanying notes are an integral part of these consolidated financial statements.
8
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
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
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 - Newcastle Arena Board
Bowmanville Business Improvement Area
- Board of Management for the Newcastle Central - Newcastle Community Hall
Business District Improvement Area Board
- Board of Management for the Orono Central - Solina Hall Board
Business District Improvement Area
- Clarington Public Library Board and Clarington - Tyrone Community Hall Board
Museums and Archives
- Bowmanville Santa Claus Parade Committee - Clarington Heritage Committee
All material inter-entity transactions and balances are eliminated on consolidation.
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.
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
9
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
1. Significant accounting policies (continued)
a. Significant accounting policies adopted are as follows: (continued)
ii. Investment in Elexicon Corporation (continued)
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”.
vi. Financial Instruments
Financial instruments are classified into three categories: cost, amortized cost or fair
value.
Cost category: Amounts are measured at cost less any amount for valuation
allowance. Valuation allowances are made when collection is in doubt. Financial
instruments in this category include term deposits.
Amortized cost: Amounts are measured using the effective interest rate method. The
effective interest method is a method of calculating the amortized cost of a financial
asset or financial liability (or a group of financial assets or financial liabilities) and of
allocating the interest income or interest expense over the relevant period, based on
the effective interest rate. It is applied to financial assets or financial liabilities that are
not in the fair value category and is now the method that must be used to calculate
amortized cost. Financial instruments in this category include bonds, treasury bills and
guaranteed investment certificates (GICs).
Fair Value category: The fair value of guarantees and letters of credit are based on
fees currently charged for similar agreements or on the estimated cost to terminate
them or otherwise settle the obligations with the counterparties at the reported
borrowing date. In situations in which there is no market for these guarantees, and
10
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
1. Significant accounting policies (continued)
a. Significant accounting policies adopted are as follows: (continued)
vi. Financial Instruments (continued)
they were issued without explicit costs, it is not practicable to determine their fair value
with sufficient reliability. Financial instruments in this category include derivatives and
portfolio investments.
Fair value hierarchy
The following provides an analysis of financial instruments that are measured
subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the
degree to which fair value is observable:
Level 1 - fair value measurements are those derived from quoted prices (unadjusted)
in active markets for identical assets or liabilities.
Level 2 - fair value measurements are those derived from inputs other than quoted
prices included within Level 1 that are observable for the asset or liability, either
directly (i.e., as prices) or indirectly (i.e., derived from prices); and
Level 3 - fair value measurements are those derived from valuation techniques that
include I inputs for the asset or liability that are not based on observable market data.
The fair value hierarchy requires the use of observable market inputs whenever such
inputs exist. A financial instrument is classified to the lowest level of the hierarchy for
which a significant input has been considered in measuring fair value.
vii. Adoption of new accounting standards
The Municipality adopted the following standards concurrently beginning January 1,
2023, prospectively: PS 1201 Financial Statement Presentation, PS 2601 Foreign
Currency Translation, PS 3041 Portfolio Investments and PS 3450 Financial
Instruments.
PS 1201 Financial Statement Presentation replaces PS 1200 Financial Statement
Presentation. This standard establishes general reporting principles and standards for
the disclosure of information in government financial statements. The standard
introduces the Statement of Remeasurement Gains and Losses separate from the
Statement of Operations. Requirements in PS 2601 Foreign Currency Translation, PS
3450 Financial Instruments, and PS 3041 Portfolio Investments, which are required to
be adopted at the same time, can give rise to the presentation of gains and losses as
remeasurement gains and losses.
PS 2601 Foreign Currency Translation replaces PS 2600 Foreign Currency
Translation.
The standard requires monetary assets and liabilities denominated in a foreign
currency and non-monetary items denominated in a foreign currency that are reported
as fair value, to be adjusted to reflect the exchange rates in effect at the financial
11
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
1. Significant accounting policies (continued)
a. Significant accounting policies adopted are as follows: (continued)
vii. Adoption of new accounting standards (continued)
statement date. Unrealized gains and losses arising from foreign currency changes are
presented in the new Consolidated Statement of Remeasurement Gains and Losses.
PS 3041 Portfolio Investments replaces PS 3040 Portfolio Investments. The standard
provides revised guidance on accounting for, and presentation and disclosure of,
portfolio investments to conform to PS 3450 Financial Instruments. The distinction
between temporary and portfolio investments has been removed in the new standard,
and upon adoption, PS 3030 Temporary Investments no longer applies.
PS 3450 Financial Instruments establishes accounting and reporting requirements for
all types of financial instruments including derivatives. The standard requires fair value
measurement of derivatives and portfolio investments in equity instruments that are
quoted in an active market. All other financial instruments will generally be measured
at cost or amortized cost. Unrealized gains and losses arising from changes in fair
value are presented in the Consolidated Statement of Remeasurement Gains and
Losses.
PS 3280 Asset Retirement Obligations (ARO)
PS 3280 Asset Retirement Obligations (ARO) establishes the accounting and reporting
requirements for legal obligations associated with the retirement of tangible capital
assets controlled by a government or government organization. A liability for a
retirement obligation can apply to tangible capital assets either in productive use or no
longer in productive use. This standard was adopted beginning with the 2023 fiscal
year. The Municipality has adopted PS 3280 on a modified retrospective basis.
In the past, the Municipality has reported its obligations related to the retirement of
tangible capital assets in the period when the asset was retired directly as an expense.
The new standard requires the recognition of a liability for legal obligations that exist as
a result of the acquisition, construction or development of a tangible capital asset, or
that result from the normal use of the asset when the asset is recorded and replaces
Section PS 3270 Solid Waste Landfill Closure and Post-Closure Liability (PS 3270).
Such an obligation justifies recognition of a liability and can result from existing
legislation, regulation, agreement, contract, or that is based on a promise and an
expectation of performance. The estimate of the liability includes costs directly
attributable to asset retirement activities. Costs include post-retirement operation,
maintenance, and monitoring that are an integral part of the retirement of the tangible
capital asset (if applicable). When recording an asset retirement obligation, the
estimated retirement costs are capitalized to the carrying value of the associated
assets and amortized over the asset's estimated remaining useful life. The
amortization of the asset retirement costs follows the same method of amortization as
the associated tangible capital asset.
12
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
1. Significant accounting policies (continued)
a. Significant accounting policies adopted are as follows: (continued)
vii. Adoption of new accounting standards (continued)
A significant part of asset retirement obligations results from the removal and disposal
of designated substances such as asbestos from buildings. The Municipality reports
liabilities related to the legal obligations where the Municipality is obligated to incur
costs to retire a tangible capital asset.
The Municipality’s ongoing efforts to assess the extent to which designated substances
exist in Municipality assets, and new information obtained through regular
maintenance and renewal of Municipality assets may result in additional asset
retirement obligations from better information on the nature and extent the substance
exists or from changes to in the estimated cost to fulfil the obligation. The
measurement of asset retirement obligations is also impacted by activities that
occurred to settle all or part of the obligation, or any changes in the legal obligation.
Revisions to the estimated cost of the obligation will result in an increase to the
carrying amount of the associated assets that are in productive use and amortized as
part of the asset on an ongoing basis. When obligations have reliable cash flow
projections, the liability may be estimated using the present value of future cash flows.
Subsequently, accretion of the discounted liability due to the passage of time is
recorded as an in-year expense (if applicable). As of December 31, 2023, all liabilities
for asset retirement obligations are reported at current costs in nominal dollars without
discounting.
b. Basis of accounting
i. Accrual basis of accounting
Revenues and expenses are reported on the accrual basis of accounting. The accrual
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. 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
13
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
1. Significant accounting policies (continued)
b. Basis of accounting (continued)
ii. Non-financial assets (continued)
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
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.
iii. 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.
14
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
1. Significant accounting policies (continued)
b. Basis of accounting (continued)
iv. 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.
v. 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.
vi. 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
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, 2023, there was no liability recorded on
the statement.
vii. 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
15
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
1. Significant accounting policies (continued)
b. Basis of accounting (continued)
vii. Revenue Recognition (continued)
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.
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
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.
16
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
1. Significant accounting policies (continued)
b. Basis of accounting (continued)
viii. Inventory for resale
Inventory for resale is valued at the lower of cost or net realizable value on an average
cost basis.
ix. 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. Financial Instruments
a. Classification
The carrying value of each class of the Municipality's financial instruments is provided in the
following tables.
17
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
2. Financial Instruments (continued)
a. Classification (continued)
Cash and cash equivalents
Investments
Accounts receivable
Taxes receivable
Promissory notes
Investment in Elexicon Corporation
Accounts payable and accrued liabilities
Debenture debt
Cost / 2023
Amortized
Fair Value Cost Total
$ 69,266,929 $ - $ 69,266,929
153,213,884 -153,213,884
- 13,213,701 13,213,701
- 13,064,048 13,064,048
- 8,321,000 8,321,000
- 19,579,036 19,579,036
- 13,531,048 13,531,048
- 30,337,689 30,337,689
Balance at the end of the year $222,480,813 $ 98,046,522 $320,527,335
Cost / 2022
Amortized
Fair Value Cost Total
Cash and cash equivalents $ 66,161,067 $ - $ 66,161,067
Investments 158,112,846 -158,112,846
Accounts receivable - 11,429,392 11,429,392
Taxes receivable - 10,394,135 10,394,135
Promissory notes - 8,321,000 8,321,000
Investment in Elexicon Corporation - 20,258,934 20,258,934
Accounts payable and accrued liabilities - 11,115,311 11,115,311
Debenture debt - 32,312,792 32,312,792
Balance at the end of the year $224,273,913 $ 93,831,564 $318,105,477
The only financial instruments that are measured subsequent to initial recognition at fair
value are cash and cash equivalents and investments. These are fair value measurements
that are derived from quoted prices (unadjusted) in the active markets for identical assets or
liabilities using the last bid price.
18
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
2. Financial Instruments (continued)
b. Financial Instrument Fair Value Measurement
The following table provides an analysis of financial instruments that are measured at fair
value, using a fair value hierarchy of levels 1 to 3. The levels reflect the significance of the
inputs used in making the fair value measurements, as described below:
• Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities
• Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)
• Level 3 - Inputs for the asset or liability that are not based on observable market data
(unobservable inputs)
Cash and cash equivalents
Investments
Total
Level 1 Level 2 Level 3 2023 Total
$ 69,266,929 $ - $ - $ 69,266,929
153,213,884 - -153,213,884
$222,480,813 $ - $ - $222,480,813
Cash and cash equivalents
Investments
Total
Level 1 Level 2 Level 3 2022 Total
$ 66,161,067 $ - $ - $ 66,161,067
158,112,846 - -158,112,846
$224,273,913 $ - $ - $224,273,913
There were no transfers between Level 1 and Level 2 for the year ended December 31,
2023. There were also no transfers in or out of Level 3.
c. Financial Instrument Risk Management
The Municipality is exposed to credit risk, liquidity risk, interest rate risk and other price risk
from its financial instruments. This note describes the Municipality's objectives, policies and
processes for managing those risks and the methods used to measure them. Further
qualitative and quantitative information in respect of these risks is presented below and
throughout these financial statements.
19
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
2. Financial Instruments (continued)
c. Financial Instrument Risk Management (continued)
Credit Risk
Credit risk is the risk of financial loss to the Municipality if a debtor fails to make payments of
interest and principal when due. The Municipality is exposed to this risk relating to its cash
and cash equivalents, investments, and accounts receivable. The Municipality holds its cash
accounts with federally regulated chartered banks who are insured by the Canadian Deposit
Insurance Corporation. In the event of default, the Municipality's cash accounts are insured
up to $100,000.
Accounts receivable are primarily due from the federal and provincial governments, as well
as various developers and residents. Credit risk is mitigated by the financial solvency of the
Provincial government and the highly diversified nature of the receivables.
The Municipality measures its exposure to credit risk based on how long the amounts have
been outstanding. An impairment allowance is set up based on the Municipality's historical
experience regarding collections. It is management's opinion that the Municipality is not
exposed to significant credit risk.
There have been no significant changes from the previous year in the exposure to risk or
policies, procedures and methods used to measure the risk.
Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will
fluctuate because of changes in market prices. Market risk comprises three types of risk:
currency risk, interest rate risk and equity risk.
There have been no significant changes from the previous year in the exposure to risk or
policies, procedures and methods used to measure the risk.
Currency Risk
Current risk is the risk that the fair value of future cash flows of a financial instrument will
fluctuate because of changes in foreign currency rates. The Municipality is not exposed to
currency risk.
Equity Risk
Equity risk is the uncertainty associated with the valuation of assets arising from changes in
equity markets. The Municipality is not exposed to this risk.
20
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
2. Financial Instruments (continued)
c. Financial Instrument Risk Management (continued)
Liquidity Risk
Liquidity risk is the risk that the Municipality will encounter difficulty in meeting its obligation
associated with financial liabilities. Liquidity risk includes the risk that, as a result of
operational liquidity requirements, the Municipality will not have sufficient funds to settle a
transaction on the due date; will be forced to sell financial assets at a value, which is less
than what they are worth; or may be unable to settle or recover a financial asset. The
Municipality is exposed to this risk mainly in respect of accounts payable and accrued
liabilities and long-term debt. The Municipality's approach to managing liquidity is to ensure
as far as possible, that it will always have sufficient cash flows to fund its operations and to
meet its liabilities when due, under both normal and stressed conditions. There have not
been any changes to these risks from the prior year.
Unless otherwise noted, the expected cash outflows are within one year. The following table
sets out the contractual maturities (representing undiscounted contractual cash-flows) of
financial liabilities:
2023
Within 6 6 months to
months 1 year 1 to 5 years Over 5 years
Accounts payable and accrued
liabilities
Debenture debt
$ 13,038,502
-
$ 492,546
2,039,737
$ -
10,474,796
$ -
17,823,156
$ 13,038,502 $ 2,532,283 $ 10,474,796 $ 17,823,156
Within 6
months
6 months to 1
year 1 to 5 years
2022
Over 5 years
Accounts payable and accrued
liabilities
Debenture debt
$ 10,437,450
-
$ 677,861
1,975,103
$ -
10,260,935
$ -
20,076,754
$ 10,437,450 $ 2,652,964 $ 10,260,935 $ 20,076,754
Interest Rate Risk
Interest rate risk is the potential for financial loss caused by fluctuations in fair value or
future cash flows of financial instruments because of changes in market interest rates. The
Municipality is exposed to this risk through its municipal debt and interest bearing
21
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
2. Financial Instruments (continued)
c. Financial Instrument Risk Management (continued)
investments.
The Municipality holds investments which consist of guaranteed investment certificates
(GICs), fixed income securities and principal protected notes with varying maturities from
May 2024 to December 2033 and bearing interest rates between 0.25% and 12.0%.
Investments with a maturity of less than 90 days are reported within cash and cash
equivalents, due to the highly liquid nature of these investments.
The Municipality holds municipal debt with variable interest rates which involve risks of
default on interest and principal and price changes due to, without limitation, such factors as
interest rate changes and general economic conditions.
The Municipality structures its finances so as to stagger the maturities of debt, thereby
minimizing exposure to interest rate fluctuations.
There has been an increase in interest rate risk in the December 31, 2023 year end as the
amount invested in the investment portfolio increased in the year.
3. Trust funds
Trust funds administered by the Municipality amounting to $2,218,755 (2022 – $2,132,080) have
not been included in the “Consolidated Statement of Financial Position” nor have their financial
activities been included in the “Consolidated Statement of Operations”.
4. 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
lieu of property taxes on their behalf. The amounts levied and remitted are summarized below:
22
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
4. Operations of school boards and The Regional Municipality of Durham (continued)
Regional
School Municipality
Boards of Durham
2023
Property taxes $ 33,980,454 $109,177,985
Taxation from other governments 114,886 3,199,901
Total $ 34,095,340 $112,377,886
2022
Property taxes $ 33,318,506 $101,516,824
Taxation from other governments 184,430 3,108,946
Total $ 33,502,936 $104,625,770
5. Investments
Total investments of $153,213,884 (2022 -$158,112,846) reported on the Consolidated
Statement of Financial Position at cost, amortized cost or fair value, have a market value of
$154,903,174 (2022 -$152,309,075 ) 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.
2023 Market 2022 Market
2023 Cost Value 2022 Cost Value
GICs $ 22,829,469 $ 23,337,611 $ 32,649,802 $ 34,797,225
Principal Protected Notes 64,501,500 63,642,742 29,130,000 27,586,624
Bonds 58,979,183 59,246,474 88,890,283 82,098,502
Pooled Funds Equity 3,178,866 4,545,854 2,983,725 3,878,133
Pooled Funds Bonds 4,553,383 4,130,493 4,459,036 3,948,591
Subtotal 154,042,401 154,903,174 158,112,846 152,309,075
Fair Value (PS 3450) (828,517) ---
Total $153,213,884 $154,903,174 $158,112,846 $152,309,075
23
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
5. Investments (continued)
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
of $16,242,639 (2022 - $31,084,106) on the Consolidated Statement of Financial Position.
6. Taxes receivable
The balance in taxes receivable, including penalties and interest, is comprised of the following:
2023 2022
Current year taxes $ 9,951,358 $ 7,936,311
Previous year taxes 3,212,690 2,507,824
13,164,048 10,444,135
Allowance for uncollectible taxes (100,000) (50,000)
$ 13,064,048 $ 10,394,135
7. Promissory notes receivable
2023 2022
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
$ 8,321,000 $ 8,321,000
Interest revenue earned from these notes receivable totaled $343,658 (2022 -$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, 2025.
8. 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
24
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
8. Investment in Elexicon Corporation (continued)
a. Investment in Elexicon Corporation (continued)
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:
2023 2022
Financial position
Assets
Current $ 116,654,000 $ 103,438,000
Capital and intangibles 720,727,000 661,146,000
Other 708,000 4,340,000
Regulatory balances 56,310,000 58,573,000
Total assets and regulatory balances 894,399,000 827,497,000
Liabilities
Current 175,942,000 283,588,000
Long-term debt 253,465,000 122,513,000
Other 196,842,000 148,489,000
Total liabilities 626,249,000 554,590,000
Shareholders' equity
Share capital 97,692,000 97,692,000
Contributed capital 25,000 25,000
Retained earnings 159,051,000 165,161,000
Regulatory balances 11,382,000 10,029,000
Total shareholders' equity and regulatory balances 268,150,000 272,907,000
Total liabilities, equity and regulatory balances 894,399,000 827,497,000
25
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
8. Investment in Elexicon Corporation (continued)
a. Investment in Elexicon Corporation (continued)
2023 2022
Financial activities
Revenues 518,981,000 514,713,000
Other income (2,428,000) 15,458,000
Expenses (512,314,000) (524,157,000)
Net movements in regulatory balances, net of tax (4,234,000) 15,170,000
Net income for the year $ 5,000 $ 21,184,000
b. Municipality's equity is represented by:
2023 2022
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 23,691,607 23,691,145
Net increase in value of investment 400,126 400,126
Accumulated dividends received (14,659,192) (13,978,832)
Total equity 27,900,036 28,579,934
Municipality of Clarington's investment represented by:
Investment in Corporation 19,579,036 20,258,934
Promissory notes receivable 8,321,000 8,321,000
$ 27,900,036 $ 28,579,934
c. 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.
26
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
8. 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.
(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 is expected to perform a true-up based on actual
load at the end of the fifteenth anniversary of the in-service date.
d. Lease commitments - Elexicon Corporation
Future minimum non-cancellable lease payment obligations under finance leases are as
follows:
2024 $ 124,000
2025 95,000
2026 71,000
2027 44,000
$ 334,000
9. 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
27
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
9. Employee future benefits liabilities (continued)
a. Accumulated sick leave entitlement (continued)
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, 2023 was $1,249,533 (2022 -$1,156,136).
(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, 2023 amounted to $17,758 (2022 -$20,372).
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, 2023 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 2023 fiscal year end was determined by this valuation.
The significant actuarial assumptions employed for the valuation are as follows:
(i) Discount rate will be 4.40% per annum, decreasing to 4.10% in 2024.
(ii) Future inflation rates will be 2.75%.
(iii) Dental cost trend rates will be 5.00% in fiscal 2023 and remain stable at that
level until 2027.
(iv)Extended health care trend rates will be 5.60% in fiscal 2023; and remain stable
at that level until 2027.
28
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
9. Employee future benefits liabilities (continued)
c. Information about the Municipality’s employee future benefits liabilities is as follows:
2023 2022
Accrued benefit obligation
Balance, beginning of year $ 8,105,014 $ 10,200,559
Employer current service cost 471,461 568,651
Interest cost 360,717 261,114
Benefits paid (685,340) (574,032)
Actuarial (gain) loss 62,380 (2,351,278)
Balance, end of year 8,314,232 8,105,014
Unamortized net actuarial gains 1,618,926 1,797,882
Employee future benefits liabilities, end of year $ 9,933,158 $ 9,902,896
10. 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, 2023. The results of this valuation disclosed total going concern
actuarial liabilities of $136,185 million with respect to benefits accrued for service with actuarial
assets at that date of $131,983 million indicating an actuarial deficit of $4,202 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
2023 $ 66,600 9.00 % 14.60 % 9.20 % 15.80 %
2022 $ 64,900 9.00 % 14.60 % 9.20 % 15.80 %
The amount contributed to OMERS for 2023 was $4,063,068 (2022 – $3,396,079) for current
services and is included as an expense on the statement of operations.
29
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
11. Debenture Debt
The debenture debt consists of several debentures that mature in the years 2024 to 2042.
a. Debenture debt details
At the end of the year, the outstanding principal amount of this liability is $30,337,689 (2022
-$32,312,792).
Regional
Maturity Date Interest Rate %1 By-law # 2023 2022
July 2, 2024 1.95 to 3.35 38-2014 $ 158,000 $ 313,000
July 2, 2029 1.95 to 3.80 38-2014 2,909,600 3,344,600
October 17, 2031 1.25 to 2.80 48-2016 561,000 625,000
April 13, 2032 1.70 to 3.30 56-2017 650,451 713,128
April 13, 2032 1.70 to 3.30 56-2017 834,638 915,064
July 5, 2042 3.35 to 4.75 32-2022 19,361,000 20,000,000
July 5, 2032 3.35 to 4.30 32-2022 5,863,000 6,402,000
$ 30,337,689 $ 32,312,792
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:
2024 $ 2,039,737
2025 1,946,826
2026 2,014,915
2027 2,089,457
2028 2,170,000
Thereafter 20,076,754
$ 30,337,689
c. Principal and interest
The annual principal and interest payments required to service these liabilities are within the
30
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
11. Debenture Debt (continued)
c. Principal and interest (continued)
annual debt repayment limit prescribed by the Ministry of Municipal Affairs and Housing.
d. Interest expense
Total interest expense related to the net long-term liabilities amounted to $1,332,539 (2022
-$759,772) and is reported on the Consolidated Statement of Operations.
12. Internal Loans
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 $ 1,251,240
LED Street lighting Conversion 1,859,760
$ 3,111,000
b. Of the internal loans reported in (a) of this note, principal payments are as follows:
2024 $ 271,000
2025 279,000
2026 287,000
2027 296,000
2028 304,000
Thereafter 1,674,000
$ 3,111,000
31
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
13. Deferred revenue - obligatory reserve funds
The continuity of “deferred revenue - obligatory reserve funds” of the Municipality is summarized
as follows:
2023 2022
Balance, beginning of year $ 82,188,877 $ 69,404,094
Contributions:
Contributions from developers 8,271,330 12,553,477
Investment Income 2,041,566 2,106,347
Canada community-building 3,045,085 2,918,206
Provincial infrastructure 3,286,821 3,866,848
16,644,802 21,444,878
Utilization:
Transfer to operating 4,992,558 4,083,503
Acquisition of TCA - construction 10,022,286 4,576,592
15,014,844 8,660,095
Change in deferred revenue during the year 1,629,958 12,784,783
Balance, end of year 83,818,835 82,188,877
Balance, end of year - analyzed as follows:
Parkland cash-in-lieu 8,173,177 6,874,492
Canada community-building 4,165,905 4,525,798
Building code act 269,126 2,462,343
Provincial infrastructure 6,993,237 4,348,686
Development charges (Note 13) 64,217,390 63,977,558
Total deferred revenue – obligatory reserve funds $ 83,818,835 $ 82,188,877
32
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
14. Continuity of development charges reserve funds
2023 2022
Balance at the beginning of the year $ 63,977,558 $ 55,986,474
Development charges collections 7,052,175 11,290,994
Investment income 1,695,019 1,694,340
Tangible capital assets acquisitions and construction (6,155,076) (1,957,747)
Operating expenses (2,352,286) (3,036,503)
Balance at the end of the year $ 64,217,390 $ 63,977,558
15. 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.
16. Contractual commitments
During the year the Municipality had work done on several major projects with contract values
totaling approximately $42,860,745 (2022 -$38,354,707). These contracts relate to the
construction and expansion of certain permanent facilities. As at December 31, 2023, $5,569,216
(2022 -$8,613,197) relating to these contracts had not been expended.
17. Related party transactions and balances - Elexicon Corporation
2023 2022
Transactions
Dividends received
Interest earned on promissory notes
Property taxes
Energy and services purchases
$ 680,361
343,658
35,241
575,464
$ 845,288
343,657
34,413
492,128
Balances
Promissory notes receivable
Accounts payable and accrued liabilities
8,321,000
99,967
8,321,000
83,078
33
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
18. 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.
19. 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
34
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
19. 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 2023, there were contributed assets of $2,886,036 (2022 -
$7,524,869).
b. Works of Art and Historical Treasures
The Municipality has one historical collection. The Clarington Museums and Archives
collection is currently insured for $287,800. 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.
20. Accumulated surplus
Accumulated surplus is comprised of the following:
2023 2022
Investment in tangible capital assets $465,854,595 $461,450,953
General surplus 5,899,218 6,842,796
Capital Surplus 50,926,372 52,543,426
Inventory - surplus land 146,349 146,349
Debenture debt (30,337,689) (32,312,792)
Other long-term liabilities - ARO (449,907) -
Unfunded employee benefits and post-employment liabilities (938,780) (1,906,715)
Reserves set aside for specific purposes by Council:
Acquisition of capital assets 8,555,498 7,852,477
Legal / consulting 3,035,289 2,169,447
Election expenses 266,965 143,419
Fire prevention 304,552 304,552
Burketon park improvements 7,569 7,569
Samuel Wilmot nature area 3,430 1,301
Secondary plans 65,494 109,769
Clarington Heritage committee board 6,315 5,151
35
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
20. Accumulated surplus (continued)
2023 2022
Library and Musuem 1,388,674 1,597,025
Reserve funds set aside for specific purposes by Council:
General municipal purposes 8,594,305 8,285,492
Rate stabilization 13,598,413 10,111,424
Stategic capital 9,651,793 10,283,908
Recreation programs and facilities 1,027,506 814,070
Debenture repayment 898,243 867,433
Industrial development 717,536 676,947
Other cultural 154,287 159,706
Acquisition of capital assets 9,864,589 11,090,560
Newcastle Waterfront study 46,732 45,913
Municipal capital works 4,753,853 6,414,306
Road contributions 2,609,599 3,391,756
Port Granby LLRW 326,637 320,918
Community improvement plan 1,228,604 1,194,442
Business improvement areas 136,096 140,320
Hampton Union Cemetery 119,157 117,069
Community emergency management 758,979 623,733
Equity in Elexicon Corporation 27,900,036 28,579,934
Accumulated operating surplus 587,120,309 582,072,658
Accumulated remeasurement losses, end of year 828,517 -
Accumulated surplus $587,948,826 $582,072,658
21. 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:
36
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
21. Segmented information (continued)
a. General government services
General government is comprised of all departments that support the corporate governance,
management and program support for the Municipality.
b. Protection services
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
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.
f. Recreation and cultural services
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.
g. 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.
37
The Corporation of the Municipality of Clarington
Notes to the Consolidated Financial Statements
December 31, 2023
22. Budget amounts
The budget figures reflected in these consolidated statements are those approved by Council on
February 13, 2023. Budget figures have been translated to reflect Public Sector Accounting
Board standards (PSAS).
23. Comparative figures
Certain comparative figures have been reclassified to conform to the financial statement
presentation adopted in the current year.
38
The Corporation of the Municipality of Clarington
Consolidated Schedule of Tangible Capital Assets - Schedule 1
For the Year Ended December 31, 2023
2023
General
Land
Land Improvements Buildings Vehicles Equipment
Infrastructure
Linear Road Linear Storm
Land & Related Sewers Buildings Vehicles
Assets under
Equipment construction Total
Cost
Balance, beginning
of year
Add: additions
during the year
Less: disposals
during the year
Balance, end of year
Accumulated
amortization
Balance, beginning
of year
Add: amortization
during the year
Less: accumulated
amortization on
disposals
Balance, end of year
Net book value of
tangible capital
assets
$ 72,823,374 $ 44,203,339 $109,648,965 $
-4,001,819 4,730,734
-(217,965) (942,914)
72,823,374 47,987,193 113,436,785
- 17,692,264 59,261,377
-1,428,273 3,255,679
-(199,977) (896,246)
-18,920,560 61,620,810
$ 72,823,374 $ 29,066,633 $ 51,815,975 $
8,623,259 $ 15,225,737 $
1,215,305 1,788,456
(42,175) (813,523)
9,796,389 16,200,670
6,933,083 9,751,224
506,560 1,336,146
(42,175) (813,523)
7,397,468 10,273,847
2,398,921 $ 5,926,823 $
8,490,554 $431,909,562 $100,722,179 $ 2,260,968 $ 16,783,340 $
957,700 7,818,724 1,909,954 249,437 1,689,984
- (1,939,375) --(591,597)
9,448,254 437,788,911 102,632,133 2,510,405 17,881,727
-232,467,076 24,320,411 1,697,275 10,321,812
- 14,151,570 1,367,717 79,522 1,050,791
- (1,737,561) --(577,584)
-244,881,085 25,688,128 1,776,797 10,795,019
9,448,254 $192,907,826 $ 76,944,005 $ 733,608 $ 7,086,708 $
333,146 $ 13,077,151 $824,101,574
25,431 11,529,685 35,917,229
- (8,170,591) (12,718,140)
358,577 16,436,245 847,300,663
50,320 -362,494,842
42,034 -23,218,292
--(4,267,066)
92,354 -381,446,068
266,223 $ 16,436,245 $465,854,595
39
The Corporation of the Municipality of Clarington
Consolidated Schedule of Tangible Capital Assets - Schedule 1
For the Year Ended December 31, 2023
2022
General
Land
Land Improvements Buildings Vehicles Equipment
Infrastructure
Linear Road Linear Storm
Land & Realated Sewers Buildings Vehicles
Assets under
Equipment construction Total
Cost
Balance, beginning
of year
Add: additions
during the year
Less: disposals
during the year
Balance, end of year
$ 72,538,814 $ 43,139,415 $108,998,027 $
384,000 1,152,082 504,518
(99,440) (88,158) (495,855)
72,823,374 44,203,339 109,006,690
9,148,357 $ 15,023,754 $
- 1,106,661
(525,098) (904,678)
8,623,259 15,225,737
7,999,830 $416,276,929 $ 99,853,088 $ 2,260,968 $ 15,534,566 $
495,900 19,247,959 869,699 - 1,784,146
(5,176) (3,615,326) (608) -(535,372)
8,490,554 431,909,562 100,722,179 2,260,968 16,783,340
144,802 $ 15,291,542 $806,210,092
188,344 8,986,977 34,720,286
- (11,201,368) (17,471,079)
333,146 13,077,151 823,459,299
Accumulated
amortization
Balance, beginning
of year
Add: amortization
during the year
Less: accumulated
amortization on
disposals
Balance, end of year
Net book value of
tangible capital
assets
- 16,431,328 56,049,464
-1,349,094 3,175,273
-(88,158) (449,856)
- 17,692,264 58,774,881
$ 72,823,374 $ 26,511,075 $ 50,231,809 $
6,982,536 9,320,006
475,645 1,323,651
(525,098) (892,433)
6,933,083 9,751,224
1,690,176 $ 5,474,513 $
-221,878,134 22,974,350 1,619,684 9,654,413
- 13,960,219 1,346,637 77,591 1,067,115
- (3,371,277) (576) -(399,716)
-232,467,076 24,320,411 1,697,275 10,321,812
8,490,554 $199,442,486 $ 76,401,768 $ 563,693 $ 6,461,528 $
21,647 -344,931,562
28,673 -22,803,898
--(5,727,114)
50,320 -362,008,346
282,826 $ 13,077,151 $461,450,953
40
The Corporation of the Municipality of Clarington
Consolidated Schedule of Segmented Information - Schedule 2
For the Year Ended December 31, 2023
2023
General
government
services
Protection Transportation Environmental Recreation and Planning and
services services services Health services cultural services development Consolidated
Operating revenue
Taxation and user charges
Grants
Other
Elexicon Corporation
Contributed tangible capital assets
Other income
Loss on disposal of tangible capital assets
Total operating revenue
Operating expenses
Salaries and wages
Operating materials and supplies
Contract services
Rent and financial expenses
External transfers to others
Amortization expense
Interest on long-term liabilities
Total operating expenses
Annual surplus (deficit)
$
$
79,332,601 $
95,284
7,590,411
462
-
3,595
7,333
87,029,686
6,101,947
1,325,877
521,338
326,011
-
1,050,585
27,180
9,352,938
77,676,748 $
2,599,265 $ 2,258,696 $ 82,324 $ 411,943 $ 5,894,104 $ 1,817,977 $ 92,396,910
10,000 182,696 --472,434 500,000 1,260,414
2,334,642 6,404,655 13,825 775,158 6,435,961 310,826 23,865,478
------462
-656,673 1,271,663 -957,700 -2,886,036
-----1,283 4,878
-(125,328) --(62,525) -(180,520)
4,943,907 9,377,392 1,367,812 1,187,101 13,697,674 2,630,086 120,233,658
19,302,595 9,146,809 592,092 429,608 16,584,652 5,518,642 57,676,345
1,172,910 6,768,049 613,988 557,982 7,698,697 621,926 18,759,429
1,146,267 2,397,442 841,685 -3,318,391 2,060,591 10,285,714
-11,496 --86,626 -424,133
1,750 ---2,315,547 -2,317,297
1,087,540 15,160,219 1,757,961 19,317 4,098,018 44,652 23,218,292
-214,877 --1,152,415 -1,394,472
22,711,062 33,698,892 3,805,726 1,006,907 35,254,346 8,245,811 114,075,682
(17,767,155) $ (24,321,500) $ (2,437,914) $ 180,194 $ (21,556,672) $ (5,615,725) $ 6,157,976
41
The Corporation of the Municipality of Clarington
Consolidated Schedule of Segmented Information - Schedule 2
For the Year Ended December 31, 2023
2022
General
government
services
Protection Transportation Environmental Recreation and Planning and
services services services Health services cultural services development Consolidated
Operating revenue
Taxation and user charges
Grants
Other
Elexicon Corporation
Contributed tangible capital assets
Other income
Loss on disposal of tangible capital assets
Total operating revenue
Operating expenses
Salaries and wages
Operating materials and supplies
Contract services
Rent and financial expenses
External transfers to others
Amortization expense
Interest on long-term liabilities
Total operating expenses
Annual surplus (deficit)
$
$
75,768,278 $
162,337
7,037,427
1,959,096
-
5,911
-
84,933,049
5,054,606
887,457
743,553
347,408
-
1,032,647
29,103
8,094,774
76,838,275 $
2,516,807 $ 1,444,763 $ 156,763 $ 458,371 $ 4,444,877 $ 3,058,448 $ 87,848,307
110,244 71,049 --628,742 621,261 1,593,633
464,976 5,537,338 60,676 317,870 2,877,584 287,402 16,583,273
------1,959,096
-5,427,384 1,217,585 -879,900 -7,524,869
----388 -6,299
55,000 (270,946) (32) -(55,591) -(271,569)
3,147,027 12,209,588 1,434,992 776,241 8,775,900 3,967,111 115,243,908
17,492,153 9,312,864 485,267 326,256 14,585,697 4,079,141 51,335,984
973,891 4,954,014 669,866 341,559 5,790,416 309,576 13,926,779
1,178,984 2,854,600 849,269 -2,911,963 2,017,984 10,556,353
-15,320 --74,908 -437,636
750 ---982,981 -983,731
1,113,036 14,898,962 1,730,357 4,444 3,985,968 38,485 22,803,899
-235,355 --606,110 -870,568
20,758,814 32,271,115 3,734,759 672,259 28,938,043 6,445,186 100,914,950
(17,611,787) $ (20,061,527) $ (2,299,767) $ 103,982 $ (20,162,143) $ (2,478,075) $ 14,328,958
42
The Corporation of the Municipality of Clarington
Consolidated Schedule of Segmented Information - Schedule 3
For the Year Ended December 31, 2023
2023 - 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
Grants
Other
Contributed tangible capital assets
Total operating revenue
Operating expenses
Salaries and wages
Operating materials and supplies
Contract services
Rent and financial expenses
External transfers to others
Amortization expense
Interest on long-term liabilities
Total operating expense
Annual surplus (deficit)
$ 79,142,063 $ 2,109,800 $ 727,500 $ 144,300 $ 365,900 $ 5,210,736 $ 2,356,970 $ 90,057,269
-22,000 ---112,481 -134,481
3,811,500 3,606,934 8,803,600 --2,594,979 -18,817,013
--656,673 1,271,663 -957,700 -2,886,036
82,953,563 5,738,734 10,187,773 1,415,963 365,900 8,875,896 2,356,970 111,894,799
6,295,854 19,089,190 9,811,014 516,054 423,149 16,735,750 6,715,204 59,586,215
899,795 1,053,201 5,483,817 461,800 478,167 7,948,581 808,718 17,134,079
876,975 1,415,629 3,230,167 991,396 -3,686,850 1,818,751 12,019,768
225,000 -11,468 --76,311 -312,779
-10,000 ---797,065 -807,065
1,089,585 1,095,202 14,365,593 1,713,676 4,494 3,986,526 64,749 22,319,825
27,625 -180,093 --1,198,395 -1,406,113
9,414,834 22,663,222 33,082,152 3,682,926 905,810 34,429,478 9,407,422 113,585,844
$ 73,538,729 $ (16,924,488) $ (22,894,379) $ (2,266,963) $ (539,910) $ (25,553,582) $ (7,050,452) $ (1,691,045)
43
The Corporation of the Municipality of Clarington
Consolidated Schedule of Segmented Information - Schedule 3
For the Year Ended December 31, 2023
2022 - 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
Grants
Other
Contributed tangible capital assets
Total operating revenue
Operating expenses
Salaries and wages
Operating materials and supplies
Contracted services
Rent amd financial expenses
Enternal transfers to others
Amortization expense
Interest on long-term liabilities
Total operating expense
Annual surplus (deficit)
$ 74,897,981 $ 2,059,800 $ 1,136,500 $ 168,300 $ 354,400 $ 4,688,831 $ 1,257,970 $ 84,563,782
-22,000 ---112,481 -134,481
2,003,000 275,216 16,970,309 --1,805,851 6,000 21,060,376
--5,427,384 1,217,585 -879,900 -7,524,869
76,900,981 2,357,016 23,534,193 1,385,885 354,400 7,487,063 1,263,970 113,283,508
5,120,130 18,247,720 10,369,140 482,454 417,182 15,012,635 4,893,908 54,543,169
908,991 1,038,974 5,959,468 783,722 209,153 5,897,269 593,677 15,391,254
630,675 1,366,586 3,617,072 826,232 -2,970,715 796,282 10,207,562
218,250 -11,653 --69,048 -298,951
-10,000 ---782,845 -792,845
1,078,017 1,560,448 14,173,454 1,685,084 3,418 3,988,744 2,863 22,492,028
29,512 -201,040 --77,235 -307,787
7,985,575 22,223,728 34,331,827 3,777,492 629,753 28,798,491 6,286,730 104,033,596
$ 68,915,406 $ (19,866,712) $ (10,797,634) $ (2,391,607) $ (275,353) $ (21,311,428) $ (5,022,760) $ 9,249,912
44