June 15, 2009 - District of Mission

Municipal Forest — 50th Year Anniversary
Notes to the Consolidated Financial Statements
for the year ended December 31, 2008
Financial Statements
122
General
The notes and schedules to the Consolidated Financial Statements are an integral part of the
statements. They provide detailed information and explain the significant accounting and reporting
principles that form the basis for these statements. The notes and schedules also provide
important supplementary information and explanations, which cannot be conveniently integrated
into the Consolidated Financial Statements.
The principal activities of the District of Mission (the District) include the provision of local
government services to residents and businesses. The Community Charter of British Columbia
requires revenue and expenditure to be in accordance with the five-year financial plan adopted
annually by Council. The budget for each year of the plan must be balanced so that annual
expenditures will not exceed the total of revenue, transfers from reserves and surplus, and
proceeds from debt. Budget information presented in the consolidated financial statements reflects
the budget for the year 2008 of the District of Mission's 2008-2012 Five-Year Financial Plan
adopted by Council Bylaw #4047-2008, and this budget information has not been audited.
1. Significant Accounting Policies
a) Basis of Presentation
The Consolidated Financial Statements of the District are prepared in accordance with
generally accepted accounting principles for local governments established by the Public
Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants. The
Consolidated Financial Statements reflect the combined results and activities of the District
and its wholly owned subsidiary, the District of Mission Development Corporation. All interfund
and inter-company balances and transactions have been eliminated. The District's
general classification of funds and the purpose of those funds are shown below:
i) Operating Funds
Operating Funds are established for general, water, and sewer operations of the
District. Operating Funds are used to record the costs associated with providing
District services.
ii)
Capital Funds
Capital Funds are established for general, water, and sewer capital. Capital Funds
track the acquisition costs of various capital assets and the financing of those assets,
including related debt.
iii) Reserve Funds
Under the Community Charter of British Columbia, Council may, by bylaw, establish
Reserve Funds for specific purposes. Monies in a Reserve Fund and interest earned
thereon must be used only for the purpose for which the Fund was established. If the
amount in a Reserve Fund is greater than required, Council may, by bylaw, transfer all
or part of the balance to another Reserve Fund.
2008 Annual Report - District of Mission
31 I