AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2015

Transcription

1 0047VVW2 School Jurisdiction Code: 47 AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2015 [School Act, Sections 147(2)(a), 148, 151(1) and 276] Living Waters Catholic Regional Division No. 42 Legal Name of School Jurisdiction Box 1949 Whitecourt AB T7S 1P6 Mailing Address (780) (780) Telephone & Fax Numbers, and Address SCHOOL JURISDICTION MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING The financial statements of Living Waters Catholic Regional Division No. 42 presented to Alberta Education have been prepared by school jurisdiction management which has responsibility for their preparation, integrity and objectivity. The financial statements, including notes, have been prepared in accordance with Canadian Public Sector Accounting Standards and follow format prescribed by Alberta Education. In fulfilling its reporting responsibilities, management has maintained internal control systems and procedures designed to provide reasonable assurance that the school jurisdiction's assets are safeguarded, that transactions are executed in accordance with appropriate authorization and that accounting records may be relied upon to properly reflect the school jurisdiction's transactions. The effectiveness of the control systems is supported by the selection and training of qualified personnel, an organizational structure that provides an appropriate division of responsibility and a strong system of budgetary control. Board of Trustees Responsibility The ultimate responsibility for the financial statements lies with the Board of Trustees. The Board reviewed the audited financial statements with management in detail and approved the financial statements for release. External Auditors The Board appoints external auditors to audit the financial statements and meets with the auditors to review their findings. The external auditors were given full access to school jurisdiction records. Declaration of Management and Board Chair To the best of our knowledge and belief, these financial statements reflect, in all material respects, the financial position, results of operations and cash flows for the year in accordance with Canadian Public Sector Accounting Standards. BOARD CHAIR Gemma Christie Name "Original Signed" Signature SUPERINTENDENT Carol Lemay Name "Original Signed" Signature SECRETARYTREASURER OR TREASURER Tamara Sloboda, CPA, CGA Name "Original Signed" Signature November 30, 2015 Boardapproved Release Date c.c. ALBERTA EDUCATION, Financial Reporting & Accountability Branch 8th Floor Commerce Place, Street, Edmonton AB T5J 4L5 sarah.brennan@gov.ab.ca PHONE: (780) (Toll free ) FAX: (780)

2 School Jurisdiction Code: 47 TABLE OF CONTENTS Page INDEPENDENT AUDITORS' REPORT 3 STATEMENT OF FINANCIAL POSITION 4 STATEMENT OF OPERATIONS 5 STATEMENT OF CASH FLOWS 6 STATEMENT OF CHANGE IN NET FINANCIAL ASSETS (NET DEBT) 7 STATEMENT OF REMEASUREMENT GAINS AND LOSSES 8 SCHEDULE OF CHANGES IN ACCUMULATED SURPLUS 9 SCHEDULE OF CAPITAL REVENUE 11 SCHEDULE OF PROGRAM OPERATIONS 12 SCHEDULE OF PLANT OPERATIONS AND MAINTENANCE EXPENSES 13 UNAUDITED SCHEDULE OF FEE REVENUE 14 UNAUDITED SCHEDULE OF DIFFERENTIAL FUNDING 15 UNAUDITED SCHEDULE OF CENTRAL ADMINISTRATION EXPENSES 16 NOTES TO THE FINANCIAL STATEMENTS 17 2

3 INDEPENDENT AUDITORS REPORT To the Board of Trustees of Living Waters Catholic Schools Regional Division No. 42: We have audited the accompanying financial statements of Living Waters Catholic Schools Regional Division No. 42, which comprise the statement of financial position as at August 31, 2015, the statements of operations, changes in net debt and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We have conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, these financial statements present fairly, in all material respects, the financial position of Living Waters Catholic Schools Regional Division No. 42 as at August 31, 2015 and the results of its operations, changes in its net debt, and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. November 30, 2015 Edmonton, Alberta Hawkings Epp Dumont LLP Chartered Accountants

4 STATEMENT OF FINANCIAL POSITION As at August 31, 2015 (in dollars) School Jurisdiction Code: FINANCIAL ASSETS Cash and cash equivalents (Note 3) 2,937,897 3,199,494 Accounts receivable (net after allowances) (Note 4) 991,598 1,351,856 Portfolio investments Other financial assets Total financial assets 3,929,495 4,551,350 LIABILITIES Bank indebtedness Accounts payable and accrued liabilities (Note 5) 976, ,493 Deferred revenue (Note 6) 21,050,494 21,250,024 Employee future benefit liabilities Liability for contaminated sites Other liabilities Debt (Note 7) Supported: Debentures and other supported debt 534, ,532 Unsupported: Debentures and capital loans Mortgages Capital leases Total liabilities 22,561,548 22,642,049 Net financial assets (debt) (18,632,053) (18,090,699) NONFINANCIAL ASSETS Tangible capital assets (Note 8) Land 725, ,852 Construction in progress 768,091 Buildings 44,968,968 Less: Accumulated amortization (24,159,894) 20,809,074 21,596,780 Equipment 4,255,530 Less: Accumulated amortization (3,765,301) 490, ,184 Vehicles 121,262 Less: Accumulated amortization (41,487) 79,775 94,328 Computer Equipment 1,214,602 Less: Accumulated amortization (667,458) 547, ,368 Total tangible capital assets 23,420,165 23,642,512 Prepaid expenses 37,980 35,276 Other nonfinancial assets Total nonfinancial assets 23,458,145 23,677,788 Accumulated surplus (Note 9) 4,826,092 5,587,089 Accumulating surplus / (deficit) is comprised of: Accumulated operating surplus (deficit) 4,826,092 5,587,089 Accumulated remeasurement gains (losses) 4,826,092 5,587,089 Contractual obligations (Note 10) Contingent liabilities The accompanying notes and schedules are part of these financial statements. 4

5 STATEMENT OF OPERATIONS For the Year Ended August 31, 2015 (in dollars) School Jurisdiction Code: 47 Budget Actual Actual (Note 16) REVENUES Alberta Education 18,467,168 Other Government of Alberta 1,735,437 Federal Government and First Nations Other Alberta school authorities Out of province authorities Alberta municipalitiesspecial tax levies Property taxes 1,308,947 Fees 500,000 Other sales and services 5,000 Investment income 35,000 Gifts and donations 125,000 Rental of facilities Fundraising 450,000 Gains on disposal of capital assets 22,315,711 21,146,760 75,553 96, ,919 43,233 1,277,485 1,278, , ,358 68,430 63,140 30,889 32,518 91,010 94, , ,243 Other revenue EXPENSES Total revenues 22,626,552 25,173,238 23,826,449 Instruction ECS 1,058,635 1,623,750 1,397,546 Instruction Grades ,454,814 18,918,440 16,987,584 Plant operations and maintenance 3,364,846 4,024,944 3,824,073 Transportation 211, , ,243 Board & system administration 1,205,964 1,194,292 1,190,938 External services Total expenses 22,295,659 25,934,235 23,567,384 Operating surplus (deficit) 330,893 (760,997) 259,065 The accompanying notes and schedules are part of these financial statements. 5

6 School Jurisdiction Code: 47 STATEMENT OF CASH FLOWS For the Year Ended August 31, 2015 (in dollars) CASH FLOWS FROM: A. OPERATING TRANSACTIONS Operating surplus (deficit) (760,997) 259,065 Add (Deduct) items not affecting cash: Total amortization expense 1,835,354 1,844,493 Gains on disposal of tangible capital assets Losses on disposal of tangible capital assets Expended deferred capital revenue recognition (1,661,086) (1,674,798) Deferred capital revenue writeoff Donations in kind Changes in: Accounts receivable 360, ,754 Prepaids (2,704) 12,677 Other financial assets Nonfinancial assets Accounts payable, accrued and other liabilities 343, ,543 Deferred revenue (excluding EDCR) 1,461,556 (64,825) Employee future benefit liabilities Other (describe) Total cash flows from operating transactions 1,575, ,909 B. CAPITAL TRANSACTIONS Purchases of tangible capital assets Land Buildings (1,417,184) (178,970) Equipment (15,766) Vehicles Computer equipment (180,057) (374,775) Net proceeds from disposal of unsupported capital assets Other (describe) Total cash flows from capital transactions (1,613,007) (553,745) C. INVESTING TRANSACTIONS Purchases of portfolio investments Dispositions of portfolio investments Remeasurement gains (losses) reclassified to the statement of operations Change in endowments Other (describe) Total cash flows from investing transactions D. FINANCING TRANSACTIONS Issue of debt Repayment of debt (224,160) (224,160) Other factors affecting debt (describe) Issuance of capital leases Repayment of capital leases Other factors affecting capital leases (describe) Other (describe) Total cash flows from financing transactions (224,160) (224,160) Increase (decrease) in cash and cash equivalents (261,597) 100,004 Cash and cash equivalents, at beginning of year 3,199,494 3,099,490 Cash and cash equivalents, at end of year 2,937,897 3,199,494 The accompanying notes and schedules are part of these financial statements. 6

7 School Jurisdiction Code: 47 STATEMENT OF CHANGE IN NET FINANCIAL ASSETS (NET DEBT) For the Year Ended August 31, 2015 (in dollars) Budget Operating surplus (deficit) 330,893 (760,997) 259,065 Effect of changes in tangible capital assets Acquisition of tangible capital assets (500,000) (1,613,007) (626,126) Amortization of tangible capital assets 1,996,641 1,835,354 1,844,493 Net carrying value of tangible capital assets disposed of Writedown carrying value of tangible capital assets Other changes Total effect of changes in tangible capital assets 1,496, ,347 1,218,367 Changes in: Prepaid expenses (2,704) 12,677 Other nonfinancial assets Net remeasurement gains and (losses) Endowments Increase (decrease) in net financial assets (net debt) 1,827,534 (541,354) 1,490,109 Net financial assets (net debt) at beginning of year (18,090,699) (19,580,808) Net financial assets (net debt) at end of year 1,827,534 (18,632,053) (18,090,699) The accompanying notes and schedules are part of these financial statements. 7

8 School Jurisdiction Code: 47 STATEMENT OF REMEASUREMENT GAINS AND LOSSES For the Year Ended August 31, 2015 (in dollars) Accumulated remeasurement gains (losses) at beginning of year Unrealized gains (losses) attributable to: Portfolio investments Other Amounts reclassified to the statement of operations: Portfolio investments Other Net remeasurement gains (losses) for the year Accumulated remeasurement gains (losses) at end of year The accompanying notes and schedules are part of these financial statements. 8

9 School Jurisdiction Code: 47 SCHEDULE OF CHANGES IN ACCUMULATED SURPLUS for the Year Ended August 31, 2015 (in dollars) INTERNALLY RESTRICTED ACCUMULATED ACCUMULATED ACCUMULATED INVESTMENT ENDOWMENTS UNRESTRICTED TOTAL TOTAL SURPLUS REMEASUREMENT OPERATING IN TANGIBLE SURPLUS OPERATING CAPITAL GAINS (LOSSES) SURPLUS CAPITAL RESERVES RESERVES ASSETS Balance at August 31, ,587,089 5,587,089 2,943, ,156 2,500,288 Prior period adjustments: Adjusted Balance, August 31, ,587,089 5,587,089 2,943, ,156 2,500,288 Operating surplus (deficit) (760,997) (760,997) (760,997) Board funded tangible capital asset additions Disposal of unsupported tangible capital 195,828 (195,828) assets or board funded portion of supported Writedown of unsupported tangible capital assets or board funded portion of supported Net remeasurement gains (losses) for the year Endowment expenses & disbursements Endowment contributions Investment income & realized capital gains on endowments Direct credits to accumulated surplus Amortization of tangible capital assets (1,835,354) 1,835,354 Capital revenue recognized 1,661,086 (1,661,086) Debt principal repayments (unsupported) Additional capital debt or capital leases Net transfers to operating reserves Net transfers from operating reserves 643,134 (643,134) Net transfers to capital reserves Net transfers from capital reserves Assumption/transfer of other operations' surplus (Other Changes) Balance at August 31, ,826,092 4,826,092 2,965,205 3,733 1,857,154 9

10 Balance at August 31, 2014 Prior period adjustments: Adjusted Balance, August 31, 2014 Operating surplus (deficit) Board funded tangible capital asset additions Disposal of unsupported tangible capital assets or board funded portion of supported Writedown of unsupported tangible capital assets or board funded portion of supported Net remeasurement gains (losses) for the year Endowment expenses & disbursements Endowment contributions Investment income & realized capital gains on endowments Direct credits to accumulated surplus Amortization of tangible capital assets Capital revenue recognized Debt principal repayments (unsupported) Additional capital debt or capital leases Net transfers to operating reserves Net transfers from operating reserves Net transfers to capital reserves Net transfers from capital reserves Assumption/transfer of other operations' surplus (Other Changes) Balance at August 31, 2015 School Jurisdiction Code: 47 SCHEDULE OF CHANGES IN ACCUMULATED SURPLUS for the Year Ended August 31, 2015 (in dollars) INTERNALLY RESTRICTED RESERVES BY PROGRAM School & Instruction Related Operations & Maintenance Board & System Administration Transportation External Services Operating Reserves Capital Reserves Operating Reserves Capital Reserves Operating Reserves Capital Reserves Operating Reserves Capital Reserves Operating Reserves Capital Reserves 1,811, , , ,199 1,811, , , ,199 (344,118) (139,929) (83,191) (75,896) 1,467, , ,919 76,303 10

11 47 SCHEDULE OF CAPITAL REVENUE (EXTERNALLY RESTRICTED CAPITAL REVENUE ONLY) for the Year Ended August 31, 2015 (in dollars) Unexpended Deferred Capital Revenue Proceeds on Unexpended Disposal of Deferred Provincially Surplus from Provincially Capital Expended Approved Provincially Funded Revenue from Deferred & Funded Approved Tangible Capital Other Capital Projects (A) Projects (B) Assets (C) Sources (D) Revenue Balance at August 31, ,698,866 Prior period adjustments Adjusted balance, August 31, ,698,866 Add: Unexpended capital revenue received from: Alberta Education school building & modular projects (excl. IMR) 1,272,591 Infrastructure Maintenance & Renewal capital related to school facilities 203,410 Other sources: (Describe) Other sources (Describe) : Unexpended capital revenue receivable from: Alberta Education school building & modular (excl. IMR) 13,528 Other sources: (Describe) Other souces: (Describe) Interest earned on unexpended capital revenue Other unexpended capital revenue: (Describe) Net proceeds on disposal of supported tangible capital assets Insurance proceeds (and related interest) Donated tangible capital assets (Explain): Alberta Schools Alternative Program (ASAP), Building Alberta School Construction Program, (BASCP) and other Alberta Infrastructure managed projects Transferred in (out) tangible capital assets net book value) Expended capital revenue current year (1,417,184) 1,417,184 Surplus funds approved for future project(s) Other adjustments (Explain): Deduct: Net book value of supported tangible capital dispositions or writeoffs Other adjustments (Explain): Capital revenue recognized Alberta Education 1,661,086 Capital revenue recognized Other Government of Alberta Capital revenue recognized Other revenue Balance at August 31, ,345 20,454,964 (A) (B) (C) (D) Balance of Unexpended Deferred Capital Revenue at August 31, 2015 (A) + (B) + (C) + (D) 72,345 Unexpended Deferred Capital Revenue (A) Represents funding received from the Government of Alberta to be used toward the acquisition of new approved tangible capital assets with restricted uses only. (B) Represents any surplus of funding over costs from column (A) approved by Minister for future capital expenditures with restricted uses only. (C) Represents proceeds on disposal of provincially funded restricteduse capital assets to be expended on approved capital assets per 10(2)(a) of Disposition of Property Reg. 181/2010. (D) Represents capital revenue received from entities OTHER THAN the Government of Alberta for the acquisition of restricteduse tangible capital assets. 11

12 School Jurisdiction Code: 47 SCHEDULE OF PROGRAM OPERATIONS for the Year Ended August 31, 2015 (in dollars) Plant Operations Board & REVENUES Instruction and System External ECS Grades 1 12 Maintenance Transportation Administration Services TOTAL TOTAL (1) Alberta Education 1,737,694 15,665,009 3,731, ,990 1,060,792 22,315,711 21,146,760 (2) Other Government of Alberta 4,323 71,230 75,553 96,758 (3) Federal Government and First Nations 102, ,919 43,233 (4) Other Alberta school authorities (5) Out of province authorities (6) Alberta municipalitiesspecial tax levies (7) Property taxes 1,277,485 1,277,485 1,278,797 (8) Fees 627,410 34, , ,358 (9) Other sales and services 68,430 68,430 63,140 (10) Investment income 30,889 30,889 32,518 (11) Gifts and donations 91,010 91,010 94,642 (12) Rental of facilities (13) Fundraising 549, , ,243 (14) Gains on disposal of tangible capital assets (15) Other revenue (16) TOTAL REVENUES 1,737,694 18,385,684 3,802, ,723 1,091,681 25,173,238 23,826,449 EXPENSES (17) Certificated salaries 393,454 10,777, ,907 11,342,428 10,588,394 (18) Certificated benefits 47,732 2,580,965 33,445 2,662,142 2,497,022 (19) Noncertificated salaries and wages 755,141 1,825, , ,673 3,777,299 3,230,493 (20) Noncertificated benefits 165, , ,498 97, , ,753 (21) SUB TOTAL 1,361,631 15,600, , ,321 18,603,174 17,085,662 (22) Services, contracts and supplies 262,119 3,185,330 1,309, , ,971 5,424,477 4,544,670 (23) Amortization of supported tangible capital assets 1,653,848 7,238 1,661,086 1,674,798 (24) Amortization of unsupported tangible capital assets 132,995 33,957 7, , ,695 (25) Supported interest on capital debt 71,230 71,230 92,559 (26) Unsupported interest on capital debt (27) Other interest and finance charges (28) Losses on disposal of tangible capital assets (29) Other expense (30) TOTAL EXPENSES 1,623,750 18,918,440 4,024, ,809 1,194,292 25,934,235 23,567,384 (31) OPERATING SURPLUS (DEFICIT) 113,944 (532,756) (222,488) (17,086) (102,611) (760,997) 259,065 12

13 School Jurisdiction Code: 47 SCHEDULE OF PLANT OPERATIONS AND MAINTENANCE EXPENSES for the Year Ended August 31, 2015 (in dollars) Expensed IMR, Unsupported 2015 Utilities Modular Unit Amortization Supported TOTAL Facility Planning & SUBTOTAL EXPENSES Custodial Maintenance and Relocations & Operations & Other Operations & Capital & Debt Operations and Telecomm. Lease Payments Administration Expenses Maintenance Services Maintenance Uncertificated salaries and wages 579, ,691 45, , ,609 Uncertificated benefits 101,095 29,876 11, , ,498 Subtotal Remuneration 681, ,567 56, , ,107 Supplies and services 87, , ,607 12, , ,778 Electricity 215, , ,731 Natural gas/heating fuel 142, , ,132 Sewer and water 49,906 49,906 49,906 Telecommunications 8,376 8,376 8,376 Insurance 88,879 88,879 88,879 ASAP maintenance & renewal payments Amortization of tangible capital assets Supported 1,653,848 1,653,848 Unsupported 33,957 33,957 33,957 Total Amortization 33,957 33,957 1,653,848 1,687,805 Interest on capital debt Supported 71,230 71,230 Unsupported Lease payments for facilities Other interest charges Losses on disposal of capital assets TOTAL EXPENSES 768, , , , ,184 33,957 2,299,866 1,725,078 4,024,944 SQUARE METRES School buildings 23,590.4 Non school buildings Note: Custodial: All expenses related to activities undertaken to keep the school environment and maintenance shops clean and safe. Maintenance: All expenses associated with the repair, replacement, enhancement and minor construction of buildings, grounds and equipment components. This includes regular and preventative maintenance undertaken to ensure components reach or exceed their life cycle and the repair of broken components. Maintenance expenses exclude operational costs related to expensed IMR & Modular Unit relocations, as they are reported on separately. Utilities & Telecommunications: All expenses related to electricity, natural gas and other heating fuels, sewer and water and all forms of telecommunications. Expensed IMR & Modular Unit Relocation & Lease Pmts: All operational expenses associated with noncapitalized Infrastructure Maintenance Renewal projects, modular unit (portable) relocation, and payments on leased facilities. Facility Planning & Operations Administration: All expenses related to the administration of operations and maintenance including (but not limited to) contract administration, clerical functions, negotiations, supervision of employees & contractors, school facility planning & project 'administration', administration of jointuse agreements, and all expenses related to ensuring compliance with health and safety standards, codes and government regulations. Supported Capital & Debt Services: All expenses related to supported capital assets amortization and interest on supported capital debt. 13

14 School Jurisdiction Code: 47 UNAUDITED SCHEDULE OF FEE REVENUE for the Year Ending August 31, 2015 (in dollars) Actual Actual 2014/ /2014 FEES Transportation fees 34,733 22,929 Basic instruction supplies (text books, including lost or replacement fees, course materials) 221, ,385 Technology user fees 0 0 Alternative program fees 81, ,212 Fees for optional courses (band, art, etc.) 0 0 Fees for students from other boards 0 0 Tuition fees (international & out of province) 0 0 Kindergarten & preschool 0 0 Extracurricular fees (sports teams and clubs) 188, ,275 Field trips (related to curriculum) 136, ,557 Lunch supervision fees 0 0 Locker rental; locks; student ID; uniforms; library, student union, and fitness fees 0 0 Other (describe)* 0 0 Other (describe)* 0 0 Other (describe)* 0 0 TOTAL FEES 662, ,358 *PLEASE DO NOT USE "SCHOOL GENERATED FUNDS" AS A CATEGORY Please disclose amounts paid by parents of students that are recorded as "Other sales Actual Actual and services" or "Other revenue" (rather than fee revenue): 2014/ /2014 Cafeteria sales, hot lunch, milk programs 63,023 50,860 Special events, graduation, tickets 5,407 12,280 Student travel (international, recognition trips, noncurricular) 0 0 Sales or rentals of other supplies/services (clothing, agendas, yearbooks) 0 0 Adult education revenue 0 0 Child care & before and after school care 0 0 Other (describe) 0 0 Other (describe) 0 0 Other (describe) 0 0 TOTAL 68,430 63,140 14

15 47 UNAUDITED SCHEDULE OF DIFFERENTIAL FUNDING for the Year Ended August 31, 2015 (in dollars) PROGRAM AREA First Nations, English as a Small Schools by Metis & Inuit ECS Program Unit Second Language Inclusive Necessity (FNMI) Funding (PUF) (ESL) Education (Revenue only) Funded Students in Program REVENUES Alberta Education allocated funding 305,128 1,110, ,988 1,885, ,402 Other funding allocated by the board to the program TOTAL REVENUES 305,128 1,110, ,988 1,885, ,402 EXPENSES (Not allocated from BASE, Transportation, or other funding) Instructional certificated salaries & benefits 102, , ,665 Instructional noncertificated salaries & benefits 12, , ,526 SUB TOTAL 115, ,710 9,754 1,070,191 Supplies, contracts and services 231, ,936 Program planning, monitoring & evaluation Facilities (required specifically for program area) Administration (administrative salaries & services) Other (please describe) Other (please describe) TOTAL EXPENSES 115,143 1,132,441 9,754 1,438,127 NET FUNDING SURPLUS (SHORTFALL) 189,985 (22,117) 110, ,723 15

16 School Jurisdiction Code: 47 UNAUDITED SCHEDULE OF CENTRAL ADMINISTRATION EXPENSES for the Year Ended August 31, 2015 (in dollars) Salaries & Benefits Allocated to Board & System Administration Allocated to Other Programs Supplies & Services EXPENSES Other TOTAL Salaries & Benefits Supplies & Services Other 1 Office of the superintendent 202,455 59, , ,492 2 Educational administration (excluding superintendent) 3 Business administration 379, , , ,586 4 Board governance (Board of Trustees) 100, , , ,214 5 Information technology 6 Human resources 7 Central purchasing, communications, marketing 8 Payroll 9 Administration insurance 10 Administration amortization 11 Administration other (admin building, interest) 12 Other (describe) 13 Other (describe) 14 Other (describe) TOTAL EXPENSES 682, ,868 1,194,292 1,194,292 TOTAL 16

17 LIVING WATERS CATHOLIC REGIONAL DIVISION NO. 42 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, AUTHORITY AND PURPOSE The Living Waters Catholic Regional Division No. 42 (the Regional Division ) delivers education programs under the authority of the School Act, Revised Statutes of Alberta 2000, Chapter S3. The Regional Division receives instruction and support allocations under Education Grants Regulation (AR 120/2008). The regulation allows for the setting of conditions and use of grant monies. The Regional Division is limited on certain funding allocations and administration expenses. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These financial statements have been prepared in accordance with the CICA Canadian public sector accounting standards (PSAS) without not for profit provisions. The financial statements have, in management s opinion, been properly prepared within reasonable limits of materiality and within the framework of the accounting policies summarized below: a) Cash and Cash Equivalents Cash and cash equivalents include cash and investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of change in value. These shortterm investments have a maturity of three months or less at acquisition and are held for the purpose of meeting shortterm cash commitments rather than for investing. b) Accounts Receivable Accounts receivable are shown net of allowance for doubtful accounts. c) Tangible Capital Assets The following criteria apply: Tangible capital assets acquired or constructed are recorded at cost which includes amounts that are directly related to the acquisition, design, construction, development, improvement or betterment of the asset. Cost also includes overhead directly attributable to construction as well as interest costs that are directly attributable to the acquisition or construction of the asset. Donated tangible capital assets are recorded at their fair market value at the date of donation, except in circumstances where fair value cannot be reasonably determined, when they are then recognized at nominal value. Transfers of tangible capital assets from related parties are recorded at original cost less accumulated amortization. Workinprogress is recorded as an acquisition to the applicable asset class at substantial completion. 17

18 LIVING WATERS CATHOLIC REGIONAL DIVISION NO. 42 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2015 d) Tangible Capital Assets (Continued) Buildings include land, site and leasehold improvements. Sites and buildings are written down to residual value when conditions indicate they no longer contribute to the ability of the Regional Division to provide services or when the value of future economic benefits associated with the sites and buildings are less than their net book value. For supported assets, the writedowns are accounted for as reductions to Expended Deferred Capital Revenue. Buildings that are demolished or destroyed are writtenoff. Tangible capital assets with costs in excess of 5,000 are capitalized. Tangible capital assets are amortized over their estimate useful lives on a straightline basis, at the following rates: Buildings 2.5% to 4% Vehicles & Buses 10% to 20% Computer Hardware & Software 20% to 25% Other Equipment & Furnishings 10% to 20% e) Deferred Revenue Deferred revenue includes contributions received for operations which have stipulations that meet the definition of a liability per Public Sector Accounting Standard (PSAS) PS These contributions are recognized by the Regional Division once it has met all eligibility criteria to receive the contributions. When stipulations are met, deferred revenue is recognized as revenue in the fiscal year in a manner consistent with the circumstances and evidence used to support the initial recognition of the contributions received as a liability. Deferred revenue also includes contributions for capital expenditures, unexpended and expended. Unexpended Deferred Capital Revenue represent externally restricted supported capital funds provided for a specific capital purpose received or receivable by the Regional Division, but the related expenditure has not been made at yearend. These contributions must also have stipulations that meet the definition of a liability per PS 3200 when expended. Expended Deferred Capital Revenue represent externally restricted supported capital funds that have been expended buy have yet to be amortized over the useful life of the related capital asset. Amortization over the useful life of the related capital asset is due to certain stipulations related to 18

19 LIVING WATERS CATHOLIC REGIONAL DIVISION NO. 42 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2015 the contributions that require that the school Regional Division to use the asset in a prescribed manger over the life of the associated asset. f) Operating and Capital Reserves Certain amounts are internally or externally restricted for future operating or capital purposes. Transfers to and from reserves are recorded when approved by the Board of Trustees. Capital reserves are restricted to capital purposes and may only be used for operating purposes with approval by the Minister of Education. Reserves are disclosed in the Schedule of Changes in Accumulated Surplus. g) Revenue Recognition Revenues are recorded on an accrual basis. Instruction and support allocations are recognized in the year to which they relate. Fees for services related to courses and programs are recognized as revenue when such courses and programs are delivered. Volunteers contribute a considerable number of hours per year to schools to ensure that certain programs are delivered, such as kindergarten, lunch services and the raising of school generated funds. Contributed services are not recognized in the financial statements. Eligibility criteria are criteria that the Regional Division has to meet in order to receive certain contributions. Stipulations describe what the Regional Division must perform in order to keep the contributions. Contributions without eligibility criteria or stipulations re recognized as revenue when the contributions are authorized by the transferring government or entity. Contributions with eligibility criteria but without stipulations are recognized as revenue when the contributions are authorized by the transferring government or entity and all eligibility criteria have been met. Contributions with stipulations are recognized as revenue in the period the stipulations are met, except when and to the extent that the contributions give rise to an obligation that meets the definition of a liability in accordance with Section PS Such liabilities are recorded as deferred revenue. h) Expenses Expenses are reported on an accrual basis. The cost of all goods consumed and services received during the year is expensed. Allocation of Costs Actual salaries of personnel assigned to two or more programs are allocated based on the time spent in each program. 19

20 LIVING WATERS CATHOLIC REGIONAL DIVISION NO. 42 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2015 Employee benefits and allowances are allocated to the same programs, and in the same proportions, as the individual s salary. Supplies and services are allocated based on actual program identification. i) Pensions Pension costs included in these statements comprise the cost of employer contributions for current service of employees during the year. The current and past service costs of the Alberta Teachers Retirement Fund are met by contributions by active members and the Government of Alberta. Under the terms of the Teachers Pension Plan Act, the Living Waters Catholic Regional Division No. 42 does not make pension contributions for certificated staff. The Government portion of the Regional Division is included in both revenues and expenses. For the school year ended August 31, 2015, the amount contributed by the Government was 1,414,090 (2014 1,325,900). The school participates in a multiemployer pension plan, the Local Authorities Pension Plan, and does not report on any unfunded liabilities. The expense for this pension plan is equivalent to the annual contributions of 67,720 for the year ended August 31, 2015 ( ,822). At December 31, 2014 the Local Authorities Pension Plan reported an actuarial deficiency of 2,454,636 (2013 deficiency of 4,861,516,000). j) Program Reporting The Division s operations have been segmented as follows: ECS Instruction: The provision of Early Childhood Services education instructional services that fall under the basic public education mandate. Grade 112 Instruction: The provision of instructional services for grades 1 12 that fall under the basic public education mandate. Plant Operations and Maintenance: The operation and maintenance of all school buildings and maintenance shop facilities. Transportation: The provision of regular and special education bus services (to and from school), whether contracted or board operated, including transportation facilities. Board & System Administration: The provision of board governance and systembased/central office administration. External Services: All projects, activities, and services offered outside the public education mandate for ECS children and students in grades 112. Services offered beyond the mandate for public education are to be selfsupporting, and Alberta Education funding may not be utilized to support these programs. 20

21 LIVING WATERS CATHOLIC REGIONAL DIVISION NO. 42 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2015 The allocation of revenues and expenses are reported by program, source, and object on the Schedule of Program Operations. Respective instruction expenses include the cost of certificated teachers, noncertificated teaching assistants as well as a proportionate share of supplies & services, school administration & instruction support, and System Instructional Support. k) Scholarship Endowment Funds In the year of contributions to scholarship endowment funds must be held in perpetuity in accordance with the agreement with the donor. Provisions of the agreement require that 100% of the income is reinvested each year. The residual may be disbursed for the purposes of the scholarship. Reinvestment of the endowment principal represents a direct increase to accumulated surplus. The remaining income earned on endowment principal is recognized as deferred revenue or as revenue in the year to the extent that stipulations have been met. l) Trusts Under Administration The Regional Division has property that has been transferred or assigned to it to be administered or directed by a trust agreement or statue. The Regional Division holds title to the property for the benefit of the beneficiary. Trusts under administration have been excluded from the financial reporting of the Regional Division. Trust balances can be found in Note 11. m) Financial Instruments A contract establishing a financial instrument creates, at its inception, rights and obligations to receive or deliver economic benefits. The financial assets and financial liability portray these rights and obligations in the financial statements. The Regional Division recognizes a financial instrument when it becomes a party to a financial instrument contract. Financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities and debt. Unless otherwise noted, it is management s opinion that the Regional Division is not exposed to significant credit, liquidity, currency, interest rate and other price risks. 21

22 LIVING WATERS CATHOLIC REGIONAL DIVISION NO. 42 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2015 n) Measurement Uncertainty The precise determination of many assets and liabilities is dependent on future events. As a result, the preparation of financial statements for a period involves the use of estimates and approximations, which have been made using careful judgment. Actual results could differ from those estimates. Significant areas requiring the use of management estimates relate to the potential impairment of assets, rates for amortization and estimated employee future benefits. 3. CASH AND CASH EQUIVALENTS Average Effective (Market) Yield Cost Amortized Cost Amortized Cost Cash 2,937,897 2,937,897 3,199, ACCOUNTS RECEIVABLE Gross Amount Allowance for Doubtful Accounts Net Realizable Value Net Realizable Value Alberta Education Capital 13,528 13, ,827 Other Alberta school jurisdictions 68,070 68,070 Treasury Board and Finance Supported debenture principal 543, , ,532 Federal government 76,750 76,750 62,546 Municipalities 266, , ,067 Other 23,686 23,686 30,884 Total 991, ,598 1,351, ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Alberta Education 253, ,617 Other trade payables and accrued liabilities 723, ,876 Total 976, ,493 22

23 LIVING WATERS CATHOLIC REGIONAL DIVISION NO. 42 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, DEFERRED REVENUE ADD: DEDUCT: ADD (DEDUCT): SOURCE AND GRANT OR FUND TYPE DEFERRED 2014/ / /2015 DEFERRED REVENUE Restricted Restricted Funds Adjustments REVENUE as at Funds Received/ Expended for Returned as at Aug. 31, 2014 Receivable (Paid / Payable) Funds Aug. 31, 2015 Unexpended deferred operating revenue Alberta Education: Regional Collaborative Service Delivery 67,513 67,513 Infrastructure Maintenance Renewal 252, ,416 (611,018) 271,290 Dual Credit 67,500 (32,247) 35,253 Learning and Technology Policy 61,000 (3,091) 57,909 Other Government of Alberta: Northern Tier 41,647 (13,192) 28,455 Action on Inclusion 2,929 (2,929) CTS Enhancement Equipment 40,220 (40,220) Leadership Cohort 2,625 (2,625) Other Deferred Revenue: School Generated Funds 180,563 2,112 (125,058) 57,617 Skills Canada CTS Proposal Grant 12,402 (12,402) Inclusive Ed Planning Tool 12,182 (12,182) ATA Mentorship Assistance 3,998 3,998 Greystone Technology Grant 1,000 1,000 Other (700) 150 Total unexpended deferred operating revenue 551, ,691 (855,664) 523,185 Unexpended deferred capital revenue 1,489,529 (1,417,184) 72,345 Expended deferred capital revenue 20,698,866 1,417,184 (1,661,086) 20,454,964 Total 21,250,024 3,734,404 (3,933,934) 21,050, DEBT Supported debentures outstanding at August 31, 2015 have interest rates between 8% to 12%. The terms of the debentures range between one and five years, payments made annually supported by Alberta Education 534, ,532 Debenture payments due over the next five years and beyond are: Principal Interest Total ,160 49, , ,640 28, , ,160 8,443 80, ,596 2,103 23, , ,084 Total 534,372 89, ,659 23

24 LIVING WATERS CATHOLIC REGIONAL DIVISION NO. 42 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, TANGIBLE CAPITAL ASSETS Land Total Estimated useful life 2540 Years 510 Years 510 Years 35 Years Historical cost Beginning of year 725,852 44,319,874 4,239, ,262 1,034,546 50,441,298 49,815,172 Prior period adjustments Additions 768, ,094 15, ,056 1,613, ,126 Transfers in (out) Less disposals including writeoffs 725, ,091 44,968,968 4,255, ,262 1,214,602 52,054,305 50,441, Construction In Progress Buildings Buildings Equipment Vehicles Computer Hardware & Software Total 2014 Accumulated amortization Beginning of year 22,723,094 3,512,580 26, ,178 26,798,786 24,954,293 Prior period adjustments Amortization 1,436, ,721 14, ,280 1,835,354 1,844,493 Other additions Transfers in (out) Less disposals including writeoffs 24,159,894 3,765,301 41, ,458 28,634,140 26,798,786 Net Book Value at End of Year 725, ,091 20,809, ,229 79, ,144 23,420,165 23,642,512 24

25 LIVING WATERS CATHOLIC REGIONAL DIVISION NO. 42 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, ACCUMULATED SURPLUS Detailed information related to accumulated surplus is available on the Schedule of Changes in Accumulated Surplus. Accumulated surplus is summarized as follows: Unrestricted surplus (deficit) 3, ,156 Operating reserves 1,857,154 2,500,288 Accumulated surplus from operations 1,860,887 2,643,444 Investment in tangible capital assets 2,965,205 2,943,645 Accumulated surplus 4,826,092 5,587,089 Accumulated surplus from operations (ASO) include funds of 314,759 that are raised at school level and are not available to spend at board level. The Regional Division s adjusted surplus from operations is calculated as follows: Accumulated surplus from operations 1,860,887 2,643,444 Deduct: School generated funds included in accumulated surplus (Note 12) 314, ,821 Adjusted accumulated surplus from operations (1) 1,546,128 2,352,623 (1) Accumulated surplus represents funding available for use by the school jurisdiction after deducting funds committed for use by the schools. 10. CONTINGENT LIABILITIES The Regional Division is a member of a reciprocal insurance exchange called ASBIE (Alberta School Boards Insurance Exchange). A portion of the premiums paid each year represents equity contributions to the insurance fund. These payments have been recorded as expenses in the financial statements, as the value of equity is subject to liability claims. 11. TRUSTS UNDER ADMINISTRATION These balances represent assets that are held in trust by the Regional Division. They are not recorded on the statements of the Regional Division Scholarship trusts 3,038 3,313 25

26 LIVING WATERS CATHOLIC REGIONAL DIVISION NO. 42 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, SCHOOL GENERATED FUNDS School Generated Funds, Beginning of Year 471, ,961 Gross Receipts: Fees 627, ,429 Fundraising 426, ,662 Gifts and donations 91,010 94,642 Grants to schools Other sales and services 68,430 63,140 Total gross receipts 1,213,002 1,242,873 Total Related Expenses and Uses of Funds 774, ,324 Total Direct Costs Including Cost of Goods Sold to Raise Funds 537, ,126 School Generated Funds, End of Year 372, ,384 Balance included in Deferred Revenue 57, ,563 Balance included in Accumulated Surplus (Operating Reserves) 314, , RELATED PARTY TRANSACTIONS All entities that are considered in the accounts of Government of Alberta are related parties of school Regional Divisions. These include government departments, health authorities, postsecondary institutions and other school Regional Divisions in Alberta. Financial Assets (at cost or net realizable value) Balances Liabilities (at amortized cost) Revenues Transactions Expenses Government of Alberta (GOA): Education Accounts receivable / Accounts payable 13,528 Unexpended deferred capital revenue 72,345 Expended deferred capital revenue 20,454,964 Grant revenue & expenses 20,901,621 ATRF payments made on behalf of district 1,414,090 Other Alberta school jurisdictions 68,070 Alberta Treasury Board and Finance (Principal) 534,372 71,230 Other: Alberta Capital Financing Authority 534,372 71,230 TOTAL 2014/ ,970 21,061,681 22,386,941 71,230 TOTAL 2013/2014 1,029,437 21,457,398 21,239,318 92,559 26

27 LIVING WATERS CATHOLIC REGIONAL DIVISION NO. 42 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, ECONOMIC DEPENDENCE ON RELATED THIRD PARTY The Regional Division s primary source of income is from the Alberta Government. The Regional Division s ability to continue viable operations is dependent on this funding. 15. REMUNERATION AND MONETARY INCENTIVES The Living Waters School Division had paid expenses for the year ended August 31, 2015 to or on behalf of the following positions and persons in groups as follows: Negotiated Performance Board Members: FTE Remuneration Benefits Allowances Bonuses ERIP's / Other Expenses Chair Gemma Christie , ,268 Alena Blahynka ,317 3, ,558 Robert Dias 1.0 9,576 4, ,183 Daryl Ghostkeeper 1.0 8,705 3, ,426 Dana Kentner ,493 4, ,636 Irene Sawyer ,457 4, ,776 Subtotal ,783 20, ,847 Superintendent ,906 33, ,600 Corporate Secretary ,000 20, Corporate Treasurer ,539 25, ,552 Certificated teachers ,170,522 2,628, Noncertificated other ,584, , TOTALS 15,199,510 3,504, BUDGET AMOUNTS The budget was prepared by the school Regional Division and approved by the Board of Trustees on May 26, It is presented for information purposes only and has not been audited. 17. ACCOUNTING POLICY ADOPTION In June 2010, the Public Sector Accounting Board issued PS 3260 Liability for Contaminated Sites for fiscal years starting on or after April 1, Contaminated sites are a result of contamination being introduced into the air, soil, water, or sediment of a chemical, organic, or radioactive material, or live organism that exceeds an environmental standard. The Regional Division adopted this accounting standard retroactively as of April 1, There was no impact to the Regional Division s financial statements due to this. 18. COMPARATIVE FIGURES Certain comparative figures have been reclassified to conform to the current year's presentation. 27