Sixteen Mile Sports Complex | Officially opened ... - Oakville

assets”, which are not available to discharge existingliabilities, but rather are held for use in the provisionof services.The Consolidated Statement of Operations is the municipalequivalent to the private sector’s income statement. Thisstatement presents the source, allocation and use of thetown’s financial resources throughout the reporting periodand reflects the combined operations of the operating fund,non-asset related capital project spending, reserve andreserve funds for the town and its local boards.This schedule no longer reports the costs associatedwith the acquisition of tangible capital assets (formerlyreported as the capital fund), but rather the use of assetsby reporting amortization expenses by function. As well,we no longer report on the change in fund balances butinstead we report only on the annual surplus (revenuesminus expenses) and accumulated surplus, which ties intoConsolidated Statement of Financial Position. Therefore,the annual surplus does not include expenses relating tothe acquisition of tangible capital assets, nor does it reflectthe costs relating to the principal repayment of long termdebt or the receipt of debt proceeds; but it does reflect theuse of assets in service through an amortization expense.The 2010 annual surplus is $67.0 million higher than 2009,which is due to the increase in the town’s investment inOakville Hydro, and grant funding from the Provincial andFederal Governments for tangible assets. Expendituresincreased by $25.4 million.This schedule also reports the 2010 operations againstthe 2010 approved budgets, but similar to the actuals,certain components are not included such as reserve andreserve fund transfers, capital expenses relating to theacquisitions of tangible capital assets and debt principalpayments. With the inclusion of the non financial assets,the financial statement becomes very difficult to compareto the annual and capital budget documents and approvals,as they are presented on a “cash” basis for purposes ofcalculating tax levy, and include a budgeted surplus ofonly $500,000. The projected surplus on a cash basis doesnot include the $37.1 million in amortization of assets, orany gain or loss on sale or disposal of assets. An annualresolution of Council is required under the Municipal Act,Section 284/09 to advise Council of the expenses such asamortization or post-employment liabilities, that the townis not required to include within the annual budget.Financial Planning staff prepare monthly and quarterlyvariance reports which assist management and Council intracking the budget vs. actual in order to monitor the actualsurplus on a cash basis. In accordance with the town’sFinancial Control Policy this report covers all financialmatters including: operating and capital expenditures,asset additions and disposals, reserve, reserve fund andtrust fund balances, investments, capital closures andpurchasing activity greater than $250,000. Non-budgetedtransfers and funding must be requested and approvedthrough these reports.The Consolidated Statement of Change in Net FinancialAssets is intended to provide the user of the financialstatements with more detailed information concerning thenon-financial assets of the Town of Oakville. It providesinformation on the acquisition costs of the tangiblecapital assets as well as the usage of the assets throughamortization expenses.The Consolidated Statement of Cash Flows shows theimpact that all transactions have on the town’s cashposition. It reconciles the annual surplus to the cash andcash equivalents balance reported on the ConsolidatedStatement of Financial Position. It highlights the useTown of Oakville 2010 Annual Report | 16