District of Lake Country

Notes to the Financial Statements

For the year ended December 31, 2022

3. Budget figures (continued)

Add:

Acquisition of tangible capital assets

Long-term debt principal payments and actuarial adjustments

Less:

Transfers from surpluses and reserves

Proceeds from long term debt

Proceeds from disposal of tangible capital assets

Transfer from equity in tangible capital assets for amortization

Financial plan (Budget) surplus per statement of operations

4. Future accounting change

PS 3280 – Asset Retirement Obligations

This new section provides guidance on how to account for and report a liability for asset retirement obligations. An asset retirement obligation is a legal obligation associated with the retirement of a tangible capital asset. This section applies to fiscal years beginning on or after April 1, 2022, with early adoption permitted.

District of Lake Country

Notes to the Financial Statements

For the year ended December 31, 2022

5. Cash and cash equivalents

Cash and cash equivalents consist of cash and short-term investments with maturities of 90 days or less from the date of acquisition. Cash and cash equivalents are recorded at cost and are comprised of the following:

Included in 2022 cash and cash equivalents is $3,224,923 (2021 - $2,669,051) relating to performance deposits, the use of which is subject to certain restrictions.

Operating line of credit

The District has an operating line of credit with the Toronto Dominion Commercial Bank for an authorized amount of $1,500,000, bearing interest at bank prime rate. At December 31 the balance outstanding on the operating line of credit was $nil (2021 - $nil).

6. Accounts receivable

Accounts receivable are recorded net of allowance and is comprised of the following: