Chinook Regional Library

AUDITOR'S REPORTS FOR 1999

To the Members of the Board of the Chinook Regional Library

We have audited the balance sheet of the Chinook Regional Library as at December 31,1999 and the statements of surplus accounts and revenue and expenditures -for the year then ended. These financial statements are the responsibility of the library board and its administration. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In our opinion, these financial statements present fairly, in all material respects, the financial position of the library as at December 31,1999 and the results of its operations for the year then ended in accordance with accounting principles described in Note 2 to the financial statements.

These financial statements are not prepared in accordance with generally accepted accounting principles. The extent of deviation from such principles is detailed in Note 2 to the financial statements.

(Original Signed)
Stark & Marsh
Chartered Accountants
Swift Current, Saskatchewan
February 7, 2000
 
 

NOTES TO THE FINANCIAL STATEMENTS

 1. Nature of Business
  The Chinook Regional Library administers 35 branch libraries in southwestern Saskatchewan. It operates under The Public Libraries Act and Regulations of Saskatchewan.

2. Significant accounting policies
 The Chinook Regional Library follows generally accepted accounting principles except as follows:
 (a) Capital assets are recorded at cost with no provision for amortization.
 (b) Transfers to reserves are treated as operating expenses rather than as appropriations of Surplus as is recommended under generally accepted accounting principles. Correspondingly, transfers from reserves are treated as revenue rather than apportions from surplus.

3. Cash and investments
 

	1999	1998
Cash	$ 27,896	$60,543
Investments	701,134	626.876
	------------	-------------
	$729,030	$687.41 9
	========	========

 4. Capital Assets
 

	Original Cost	1999  Accumulated Amortization	1999 Net Book Value	1998 Net Book Value
Buildings	$103,151	-	$103,151	$103,151
Furniture & Equipment	134,917	-	134,917	126,217
Vehicles	86,731	-	86,731	86,731
	$324,799	-	$324,799	$316,099
	==========	==========	=======	=======

5. Long Term Debt
 

	1999	1998
Loan repayable in monthly instalments of $441, including interest at prime.Secured by investment  held by the library at Wood Gundy.	$20,131	$23,980
Less current portion	-	-
	---------	---------
	$20,131	$23,980

Principal payments estimated to be required after 1999  are as follows:
 

2000	4,121
2001	4,392
2002	4,683
2003	4,983
2004	1,942
	$20,131

6. Reserves
The Chinook Regional LIbrary has set up the following reserves, which represent an allocation of accumulated surplus, designated for particular future purposes. When the identified cost is incurred, it is offset by an equal amount of the reserve, which is  taken into revenue for that year.
 

Vehicle Replacement	68,712	73,999
Equipment Replacement	67,851	60,045
Tire Replacement	10,000	10,000
Capital Trust	166,912	116,145
Automation Development	75,000	75,000
Sick Leave Benefits - Note 7	7,306	7,675
Building Replacement	100,000	100,000
Building Maintenance	53,600	49,600
Collection Replacement	178.982	168.937
	$728,363	$661,401
	=======	=======

7. Sick leave benefits
Beginning in 1979 the library recorded a reserve for accumulated sick leave benefits for the branch librarians. This amount accumulates at the rate of 1.25 days per month up to a maximum of $250.00 for each individual. It is reduced by the amount of sick leave taken by the employee.

8. Uncertainty due to the Year 2000 Issue
The Year 2000 Issue arises because many computerized Systems use two digits rather that four to identify a year. Date-sensitive systems may recognize the year 2000 as 1900 or some other date, resulting in errors when information using year 2000 dates is processed. In addition, similar problems may arise in some systems, which use certain dates in 1999 to represent something other than a date. The effects of the Year 2000 Issue may be experienced before, on, or after January 1, 2000, and, if not addressed,  the impact on operations and financial reporting may range from minor errors to significant systems failure which could affect an entitv's ability to conduct normal business operations. It is not  possible to be certain that all aspects of the Year 2000 Issue affecting the entity, including those related to the efforts of customers, suppliers, or other third parties, will be fully resolved.
 
 

Top of Page | Return to Annual Report Contents

| Home | Contents | About Chinook | News & Programs | Branch Information | Catalogue Search | Book News |