The annual surplus results from the inclusion of various mandated PSAB expenses for financial reporting purposes and the removal of purchased tangible capi tal assets from expenditures. Some examples of included expenses include post retirement expenses, accrued interest on long-term debt, amortization of TCA, etc.
Note 8 a) of the consolidated financial statements details the components of the accumulated surplus which consists of the following (in $ 000’s):
| 2019 | 2018 | |
|---|---|---|
| Invested in tangible capital assets | 2,052,660 | 2,009,754 |
| Invested in government business enterprises | 599,856 | 574,092 |
| Unfunded employee future benefit obligations | (603,261) | (565,410) |
| Unfunded landfill post closure liabilities | (16,531) | (13,591) |
| Unfunded inactive contaminated sites liabilities | (6,306) | (6,674) |
| Other | 83,887 | 77,848 |
| Reserves and reserve funds | 216,293 | 188,682 |
| Total accumulated surplus | 2,326,598 | 2,264,701 |
The main components of ‘Other’ include timing differences of funding expenditures including the capital fund balance, and other unfunded accruals (such as interest on long-term debt).
The Capital fund balance, which is maintained in the City’s books, reflects the cumulative fund balance position of the City of Windsor Consolidated Capital fund. The City annually approves a Capital Budget, which includes a number of Capital Projects for which the timing of the actual expenditures and their permanent financing may vary significantly. Due to this timing difference, it is normal to have an unexpended or unfinanced Capital fund position in any one year, which will impact the accumulated surplus ‘Other’ category.
Reserves and Reserve funds reflect the balance of a number of Reserve accounts and funds which have been set aside by City Council for specific purposes. Details of the various classes of reserves and their respective balances are identified in Note 8 (a) to the Consolidated Financial Statements. In some cases, certain reserves are in a temporary deficit position, which is essentially financed by internal borrowing from other reserves. Funding plans are in place to return these funds to a positive balance.
ii) Review of Statement of Operations and Accumulated Surplus:
The following provides a brief overview of the major components impacting the 2018 Consolidated Statement of Operations and Accumulated Surplus.