AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2011

Transcription

1 School Jurisdiction Code: 2185 AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2011 [School Act, Sections 147(2)(a), 148, 151(1) and 276] St. Paul Education Regional Division No.1 Legal Name of School Jurisdiction Avenue, St. Paul, AB T0A 3A3 Mailing Address tel fax Telephone and Fax Numbers SCHOOL JURISDICTION MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING The financial statements of St. Paul Education Regional Division No.1 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 generally accepted accounting principles 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 Chairman To the best of our knowledge and belief, these financial statements reflect, in all material respects, the financial position and results of operations and cash flows for the year in accordance with generally accepted accounting principles and follow the financial reporting requirements prescribed by Alberta Education. BOARD CHAIR Maureen Miller Name "ORIGINAL SIGNED" Signature SUPERINTENDENT Glen Brodziak Name "ORIGINAL SIGNED" Signature SECRETARY TREASURER OR TREASURER Jean Champagne Name "ORIGINAL SIGNED" Signature 23-Nov-11 Board-approved Release Date c.c. ALBERTA EDUCATION, Financial Reporting & Accountability Branch 8th Floor Commerce Place, Street, Edmonton AB T5J 4L5 Cindy.Wang@gov.ab.ca PHONE: (780) (Toll free )

2 School Jurisdiction Code: 2185 TABLE OF CONTENTS Page AUDITOR'S REPORT 3 STATEMENT OF FINANCIAL POSITION 4 STATEMENT OF REVENUES AND EXPENSES 5 STATEMENT OF CASH FLOWS 6 STATEMENT OF CHANGES IN NET ASSETS 7 STATEMENT OF CAPITAL ALLOCATIONS 8 NOTES TO THE FINANCIAL STATEMENTS 9 page 2

3 WildeandCompany POST OFFICE BOX 70 VEGREVILLE. ALBERTA T9C 1R1 TELEPHONE (760) FAX (760) WEBSITE INDEPENDENT AUDITOR'S REPORT To the Board of Trustees of 5t. Paul Education Regional Division No.1 Report on the Financial Statements We have audited the accompanying financial statements of 5t. Paul Education Regional Division No.1, which comprise the statement of financial position as at August 31, 2011, and the statements of revenues and expenses, cash flows, changes in net assets, and capital allocations 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 generally accepted accounting principles for not-for-profit organizations, 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. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We 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 from 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 auditor's 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, the financial statements present fairly, in all material respects, the financial position of 5t. Paul Education Regional Division No.1 as at August 31, 2011, and the results of its operations, changes in cash flows, net assets and capital allocations for the year then ended in accordance with Canadian generally accepted accounting principles for not-for-profit organizations. Vegreville, Alberta November 23, 2011

4 School Jurisdiction Code: 2185 STATEMENT OF FINANCIAL POSITION as at August 31, 2011 (in dollars) ASSETS Current assets Cash and temporary investments (Note 3) $4,201,412 $4,777,331 Accounts receivable (net after allowances) (Note 4) $1,118,316 $1,791,405 Prepaid expenses (Note x) $197,930 $206,592 Other current assets (Note x) $0 $0 Total current assets $5,517,658 $6,775,328 School generated assets $624,815 $627,168 Trust assets (Note 5) $97,745 $97,180 Long term accounts receivable (Note x) $0 $0 Long term investments (Note 6) $19,944 $19,091 Capital assets (Note 8) Land $804,791 $804,791 Construction in progress $628,311 $628,311 Buildings $60,679,517 Less: accumulated amortization ($20,066,775) $40,612,742 $42,091,584 Equipment $3,711,598 Less: accumulated amortization ($2,466,011) $1,245,587 $1,375,601 Vehicles $3,123,397 Less: accumulated amortization ($1,683,961) $1,439,436 $1,462,372 Total capital assets $44,730,867 $46,362,659 TOTAL ASSETS $50,991,029 $53,881,426 LIABILITIES Current liabilities Bank indebtedness (Note x) $0 $0 Accounts payable and accrued liabilities (Note 9) $1,801,391 $2,722,583 Deferred revenue (Note 10) $478,982 $1,051,185 Deferred capital allocations (Note 11) $0 $6,856 Current portion of long term debt $210,060 $307,016 Total current liabilities $2,490,433 $4,087,640 School generated liabilities $624,815 $627,168 Trust liabilities (Note 5) $97,745 $97,180 Employee future benefit liabilities (Note x) $0 $0 Long term debt (Note x) Supported: Debentures and other supported debt $522,319 $829,335 Less: Current portion ($210,060) ($307,016) Unsupported: Debentures and capital loans $0 $0 Capital leases $0 $0 Mortgages $0 $0 Less: Current portion $0 $0 Other long term liabilities (Note x) $0 $0 Unamortized capital allocations (Note 13) $38,430,701 $39,596,127 Total long term liabilities $39,465,520 $40,842,794 TOTAL LIABILITIES $41,955,953 $44,930,434 NET ASSETS Unrestricted net assets $208,678 $100,000 Operating reserves $2,775,800 $2,913,800 Accumulated operating surplus (deficit) $2,984,478 $3,013,800 Investment in capital assets $5,777,842 $5,937,192 Capital reserves $272,756 $0 Total capital funds $6,050,598 $5,937,192 Total net assets $9,035,076 $8,950,992 TOTAL LIABILITIES AND NET ASSETS $50,991,029 $53,881,426 Note: Please input "(Restated)" in 2010 column heading where comparatives are not taken from the finalized 2009/2010 Audited Financial Statements filed with Alberta Education. page 4

5 School Jurisdiction Code: 2185 STATEMENT OF REVENUES AND EXPENSES for the Year Ended August 31, 2011 (in dollars) Budget Actual Actual REVENUES Government of Alberta $34,703,427 $33,804,664 $33,100,167 Federal Government and First Nations $11,966,539 $11,152,458 $11,386,061 Other Alberta school authorities $0 $0 $0 Out of province authorities $0 $0 $0 Alberta Municipalities-special tax levies $0 $0 $0 Instruction resource fees $227,977 $219,530 $221,743 Transportation fees $40,679 $40,000 $38,922 Other sales and services $481,622 $360,000 $414,098 Investment income $83,490 $60,000 $71,011 Gifts and donations $40,054 $10,000 $4,756 Rental of facilities $84,515 $59,444 $80,800 Gross school generated funds $1,270,906 $1,200,000 $1,240,472 Gains on disposal of capital assets $260,483 $10,000 $27,299 Amortization of capital allocations $1,572,637 $1,652,117 $1,501,337 Other revenue $30,000 $0 Total Revenues $50,732,329 $48,598,213 $48,086,666 EXPENSES Certificated salaries (Note 21) $23,565,600 $22,730,960 $22,999,493 Certificated benefits (Note 21) $2,432,906 $2,311,807 $2,329,662 Non-certificated salaries and wages (Note 21) $10,625,697 $10,415,677 $10,198,158 Non-certificated benefits (Note 21) $2,262,856 $2,090,325 $2,108,410 Services, contracts and supplies $8,272,942 $8,042,864 $7,650,425 Gross school generated funds $1,270,906 $1,200,000 $1,240,472 Capital and debt services Amortization of capital assets Supported $1,572,637 $1,652,117 $1,501,337 Unsupported $569,166 $600,482 $407,371 Total Amortization of capital assets $2,141,803 $2,252,599 $1,908,708 Interest on capital debt Supported $69,180 $97,084 $106,984 Unsupported $0 $0 $0 Total Interest on capital debt $69,180 $97,084 $106,984 Other interest and charges $6,355 $3,000 $5,313 Losses on disposal of capital assets $0 $0 $0 Other expense $0 $0 Total Expenses $50,648,245 $49,144,316 $48,547,625 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES BEFORE EXTRAORDINARY ITEM $84,084 ($546,103) ($460,959) Extraordinary Item $0 $0 $0 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES $84,084 ($546,103) ($460,959) Note: Please input "(Restated)" where Actual 2010 comparatives are not as presented in the finalized 2009/2010 Audited Financial Statements filed with Alberta Education. Budget 2011 comparatives presented are final budget amounts formally approved by the Board. page 5

6 School Jurisdiction Code: 2185 STATEMENT OF CASH FLOWS for the Year Ended August 31, 2011 (in dollars) CASH FLOWS FROM: A. OPERATIONS Excess (deficiency) of revenues over expenses $84,084 ($460,959) Add (Deduct) items not affecting cash: Amortization of capital allocations revenue ($1,572,637) ($1,501,337) Total amortization expense $2,141,803 $1,908,708 Gains on disposal of capital assets ($260,483) ($27,299) Losses on disposal of capital assets $0 $0 Changes in: Accounts receivable $673,089 $1,308,928 Prepaids and other current assets $8,662 $21,446 Long term accounts receivable $0 $0 Long term investments ($853) $32,340 Accounts payable and accrued liabilities ($921,192) $335,371 Deferred revenue ($572,203) ($95,650) Employee future benefit liabilitiies $0 $0 Other (describe) $0 $0 Total cash flows from Operations ($419,730) $1,521,548 B. INVESTING ACTIVITIES Purchases of capital assets Land $0 $0 Buildings ($143,405) ($4,745,188) Equipment ($288,045) ($310,623) Vehicles ($227,578) ($521,540) Net proceeds from disposal of capital assets $409,500 $27,299 Other (describe) $0 ($369,478) Total cash flows from Investing activities ($249,528) ($5,919,530) C. FINANCING ACTIVITIES Capital allocations $89,407 $2,282,046 Issue of long term debt $0 $0 Repayment of long term debt ($307,016) ($380,878) Add back: supported portion $307,016 $380,878 Other (describe) AI funded capital $3,932 $0 Total cash flows from financing activities $93,339 $2,282,046 Net cash flows from during the year ($575,919) ($2,115,936) Cash and temporary investments, net of bank indebtedness, at Aug. 31/10 $4,777,331 $6,893,267 Cash and temporary investments, net of bank indebtedness, at Aug. 31/11 $4,201,412 $4,777,331 Note: Please input "(Restated)" where Actual 2010 comparatives are not as presented in the finalized 2009/2010 Audited Financial Statements filed with Alberta Education. page 6

7 STATEMENT OF CHANGES IN NET ASSETS for the Year Ended August 31, 2011 School Jurisdiction Code: 2185 (in dollars) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) INTERNALLY RESTRICTED NET ASSETS TOTAL INVESTMENT UNRESTRICTED TOTAL TOTAL NET IN CAPITAL NET OPERATING CAPITAL School & Instruction Related Operations & Maintenance Board & System Administration Transportation External Services ASSETS ASSETS ASSETS RESERVES RESERVES Cols Cols Cols Operating Reserves Capital Reserves Operating Reserves Capital Reserves Operating Reserves Capital Reserves Operating Reserves Capital Reserves Operating Reserves Capital Reserves Balance at August 31, 2010 $8,950,992 $5,937,192 $100,000 $2,913,800 $0 $298,000 $0 $1,916,143 $0 $399,657 $0 $300,000 $0 $0 $0 Prior period adjustments (describe) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Adjusted Balance, Aug. 31, 2010 $8,950,992 $5,937,192 $100,000 $2,913,800 $0 $298,000 $0 $1,916,143 $0 $399,657 $0 $300,000 $0 $0 $0 Excess (deficiency) of revenues over expenses $84,084 $84,084 Board funded capital additions $558,833 ($422,089) $0 ($136,744) $0 $0 $0 $0 $0 ($136,744) $0 $0 $0 $0 Disposal of unsupported capital assets $0 ($149,017) ($260,483) $409,500 $0 $0 $390,000 $19,500 $0 Disposal of supported capital assets (board funded portion) $0 $0 $0 $0 $0 $0 $0 $0 $0 Direct credits to net assets $0 $0 $0 Amortization of capital assets ($2,141,803) $2,141,803 Amortization of capital allocations $1,572,637 ($1,572,637) Debt principal repayments (unsupported) $0 Net transfers to operating reserves $0 $0 $0 $0 $0 $0 $0 Net transfers from operating reserves $138,000 ($138,000) ($138,000) $0 $0 $0 Net transfers to capital reserves $0 $0 $0 $0 $0 $0 Net transfers from capital reserves $0 $0 $0 $0 $0 $0 Assumption/transfer of other operations' net assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Balance at August 31, 2011 $9,035,076 $5,777,842 $208,678 $2,775,800 $272,756 $160,000 $0 $1,916,143 $0 $399,657 $253,256 $300,000 $19,500 $0 $0 page 7

8 School Jurisdiction Code: 2185 STATEMENT OF CAPITAL ALLOCATIONS (EXTERNALLY RESTRICTED CAPITAL CONTRIBUTIONS ONLY) for the Year Ended August 31, 2011 (in dollars) Deferred Capital Allocations Unamortized Capital Allocations Balance at August 31, 2010 $6,856 $39,596,127 Prior period adjustments $0 $0 Adjusted balance, August 31, 2010 $6,856 $39,596,127 Add: Restricted capital allocations from: Alberta Education school building and modular projects $89,407 Other Government of Alberta $0 Federal Government and First Nations $0 Other sources $0 Interest earned on provincial government capital allocations $0 Other capital grants and donations $0 Net proceeds on disposal of supported capital assets $0 Insurance proceeds (and related interest) $0 Donated capital assets fair market value) $0 P3, other ASAP and Alberta Infrastructure managed projects $3,932 Transferred in capital assets net book value) Current year supported debenture principal repayment $307,016 Expended capital allocations - current year ($96,263) $96,263 Deduct: Net book value of supported capital assets dispositions, write-offs, or transfer; Other $0 $0 Capital allocations amortized to revenue $1,572,637 Balance at August 31, 2011 $0 $38,430,701 * Infrastructure Maintenance Renewal (IMR) Program allocations are excluded from this Statement, since those allocations are not externally restricted to capital. page 8

9 ST. PAUL EDUCATION REGIONAL DIVISION NO.1 Year Ended August 31, Authority and purpose The School Division delivers education programs under the authority of the School Act, Revised Statutes of Alberta 2000, Chapter S-3. The division is exempt from income taxes under section 149(1)(c) of the Income Tax Act. Accordingly, there is no provision for income taxes in these financial statements. The 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 school division is limited on certain funding allocations and administration expenses. 2. Significant accounting policies a) Basis of presentation The financial statements have been prepared in accordance with the accounting standards for not-for-profit organizations published by the Canadian Institute of (CICA), using the deferral method of reporting contributions. b) Revenue recognition Revenue is recognized as follows: 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. Unrestricted contributions are recognized as revenue when received or receivable if the amount can be reasonably estimated and collection is reasonably assured. Contributions in-kind are recorded at fair market value when reasonably determinable. Externally restricted contributions are deferred and recognized as revenue in the period in which the restriction is complied with. Endowment contributions are recognized as direct increases in net assets in the period in which they are received or receivable. c) Capital assets Capital assets are recorded at cost, and are amortized over their estimated useful lives on a straight line basis, at the following rates: Buildings to 10% Equipment - 10% to 20% Vehicles - 10% to 20% Capital assets with costs in excess of $5,000 are capitalized. Capital allocations received for asset additions are amortized into revenue over the same period as the amortization expense.

10 :". ST. PAUL EDUCATION REGIONAL DIVISION NO.1 Year Ended August 31, Significant accounting policies (continued) d) Financial instruments The financial instruments of St. Paul Education Regional Division No.1 consist of cash, accounts receivable, investments, accounts payable, and long term debt. The division has chosen not to adopt CICA Handbook Sections 3862 and 3863 however, in accordance with Section 3855 (Financial Instruments - Recognition and Measurement) of the Canadian Institute of (CICA) handbook, these financial instruments are designated and measured as follows: Financial Instruments Category Measurement Cash and cash equivalents Held-for-trading Fair value Accounts receivable Loans and receivables Amortized cost Investments - bonds Held-to-maturity Amortized cost Investments - trust units Available for sale Fair value Accounts payable Other financial liabilities Amortized cost Long term debt Other financial liabilities Amortized cost All financial instruments must initially be recognized at fair value on the statement of financial position. Subsequent measurement of the financial instruments is based on their category classification. It is management's opinion that the division is not exposed to significant interest, currency or credit risks arising from these financial instruments. Unless otherwise noted, these financial instruments approximate their carrying values. The division has invested surplus funds in accordance with Section 60 (2) of the School Act. e) School generated funds These are funds which come under the control and responsibility of a school principal for school activities. They are usually collected, retained and expended at the school level (e.g. yearbook sales, graduation fees, field trip fees, etc.). f) Vacation pay Vacation pay is accrued in the period in which the employee earns the benefit.

11 ST. PAUL EDUCATION REGIONAL DIVISION NO.1 Year Ended August 31, Significant accounting policies (continued) g) Pensions Pension costs included in these statements comprise the cost of employer contributions for current service of employees during the year. The current service and past service costs of the Alberta Teacher Retirement Fund are met by contributions by active members and the Government of Alberta. Under the terms of the Teachers Pension Plan Act, the St. Paul Education Regional Division No.1 does not make pension contributions for certificated staff. The school board participates in a multi-employer 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 $435,090 for the year ended August 31, 2011 ($395, ). At December 31, 2010 the Local Authorities Pension Plan reported an actuarial deficiency of $4,635,250,000 (2009 deficiency of $3,998,614,000). h) Prepaid expenses Certain expenditures incurred before the close of the school year are for school supplies which will be consumed subsequent to the year end, and are accordingly recorded as prepaid expenses. Certain insurance expenses also fall into this category. i) Contributed services 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. Because of the difficulty of compiling these hours and the fact that these services are not otherwise purchased, contributed services are not recognized in the financial statements. j) Operating and capital reserves Reserves are established at the discretion of the Board of Trustees of the division, to set aside funds for operating and capital purposes. Such reserves are appropriations of unrestricted net assets. k) Investments Held-far-trading investments are recognized in the balance sheet at fair value. The fair values of the recognized investments are determined based on the available market information. Realized investment income and unrealized gains and losses are reported on the Statement of Operating Revenues and Expenditures. Long term investments are valued at the amortized cost, or where there has been other than a temporary impairment in the value of the investment, at market value.

12 ST. PAUL EDUCATION REGIONAL DIVISION NO.1 Year Ended August 31, Significant accounting policies (continued) I) 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 and approximations. 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 in this note. m) Cash and temporary investments Cash includes cash and cash equivalents. Cash equivalents include temporary investments that are due within one year. Carrying value approximates fair value as the investments mature within one year. n) Future accounting changes The division will be adopting the public sector accounting standards (PSA) of the CICA Handbook without reference to the not-for-profit standards. The adoption is effective for the year ending August 31, 2013 with retroactive application and restatement for the prior year. Management is currently evaluating the effect of adopting these standards. Two new reporting requirements will be implemented beginning for the year ended August 31, 2012 as follows: i) School generated revenues and expenses will be broken down into fees, fundraising, gifts/donations and other sales and services. In addition, any unexpended funds will now be recognized as deferred revenue. ii) Provincial Government Teacher Retirement Fund contributions will appear as revenue from Alberta Education and as certified benefit expense on the statement of revenues and expenses. Both of the above reporting changes will be applied retroactively. 3. Cash and temporary investments Cash and cash eguivalents $ 4,201,412 $ 4,777,331 Included in bank accounts is a restricted amount of $478,982 ( $1,058,041) received from various grant authorities as well as other externally restricted sources funds and are held exclusively for capital and operating projects (Note 9/10). The fair market value of the cash account is $4,201,412 ( $4,777,331). The division has invested surplus funds in accordance with Section 60(2){d) of the School Act. 4. Accounts receivable Alberta Education $ 174,922 $ 906,390 Alberta Finance 28,493 45,372 Other provincial government 5,800 5,800 Federal government grants 570, ,741 GST recoverable 169, ,508 Other accounts receivable 169, ,594 $ 1,118,316 $ 1,791,405

13 ST. PAUL EDUCATION REGIONAL DIVISION NO.1 Year Ended August 31, Trust funds Guaranteed investment certificates $ 65,940 $ 65,375 Provincial debenture (market as at August 31, $42,167) 31,805 31,805 $ 97,745 $ 97,180 The long term investments have effective interest rates of 2% to 6.5% (2010-2% to 6.5%) and mature from January 2012 to March The funds are held in trust for various scholarship funds. 6. Long term investments Credit Union - patronage account $ 19,944 $ 19, School generated funds Balance, beginning of year $ 627,168 $ 637,522 Source of school generated funds (SGF) SGF for the year 1,268,553 1,230,118 Less cost of generating SGF (808,907) (751,885) Net SGF additions for the year 459, ,233 Net SGF available for discretionary spending 1,086,814 1,115,755 SGF expended for discretionary purposes (461,999) (488,587) Balance, end of year $ 624,815 $ 627,168

14 Construction In Land Progress Buildings Equipment Vehicles Total Total $ $ $ $ $ $ $ Estimated Useful life years 5-10years 5-10 years Historical cost September 1, , ,311 60,902,884 3,422,992 3,022,321 68,781,299 63,165,670 Additions 143, , , ,028 5,946,829 Less disposals including write-offs (366,772) (6,639) (126,502) (499,913) (376,600) Adjustments 7,200 7,200 45,400.0 August 31, , ,311 60,679,517 3,711,598 3,123,397 68,947,614 68,781,299 Accumulated amortization September 1, ,811,299 2, ,559,949 22,418,640 20,841,131 Amortization expense 1,498, , ,748 2,141,803 1,908,709 Effect of disposals (243,520) (6,640) (100,736) (350,896) (376,600) Adjustments 7,200 7,200 45,400.0 August 31, ,066,775 2,466,011 1,683,961 24,216,747 22,418,640 Net book value at August 31, , ,311 40,612,742 1,245,587 1,439,436 44,730,867 46,362,659 Chartered Accoun!allts ST PAUL EDUCATION REGIONAL DIVISION NO.1 Year Ended August 31, 2011.' 8. Capital assets

15 ST. PAUL EDUCATION REGIONAL DIVISION NO.1 Year Ended August 31, Accounts payable and accrued liabilities Province of Alberta $ 64,611 $ 619,209 Federal Government 468, ,034 Other trade Ea~ables and accrued liabilities 1,268,058 1,674,340 $ 1,801,391 $ 2,722, Deferred revenue Add: Deduct: Deferred 2010/ /11 Deferred Revenue Restricted Funds Restricted Funds Revenue as at Received! Expended! as at Source and grant or fund t~~e Aug. 31, 201O Receivable ~Paid/ea~ablel Au~. 31, 2011 Alberta Education Restricted Operational Funding Infrastructure maintenance renewal AISI grant $ 762,391 4,512 $ 656, ,172 $ 1,242, ,137 $ 176,866 81,547 Other Restricted Revenue Northern Tier grant SPECS insurance proceeds Other revenues and arants 49, , ,284 42,000 53,995 53, ,651 38, ,279 $ 1,051,185 $ 1,295,980 $ 1,868,183 $ 478,982

16 ,. ST. PAUL EDUCATION REGIONAL DIVISION NO.1 Year Ended A...gust 31, Deferred capital allocations Deferred capital allocations represent externally restricted supported capital funds provided for a specific capital purpose received or receivable by the jurisdiction, but the related expenditure had not yet been made at year end. When expended, these deferred capital allocations are transferred to unamortized capital allocations. Add: Deduct: Deferred 2010/ /11 Deferred Cap. Alloca. Restricted Funds Restricted Funds Cap. Alloca. as at Received/ Expended/ as at Aug.31,2010 Receivable (Paid/payable) Aug. 31, 2011 $ $ $ $ Two Hills Modernization - interest earned 6,856 6,856 St. Paul Elementary-infrastructure managed 3,932 3,932 St. Paul RHS - CTS eguipment 89,407 89,407 Available for future projects 6,856 93, , Long term debt a) Debenture debt - supported The debenture debt bears interest at rates varying between 7.875% and 12%. The debenture debt is fully supported by Alberta Finance. Debenture payments due over the next five years and beyond are as follows: Debentures $ 522,319 $ 829,335 Less current portion of debt 210, ,016 Long term debt $ 312,259 $ 522,319 School Year Principal Interest Total $ 210,060 $ 53,919 $ 263, ,069 32, , ,498 21,762 88, ,498 14,570 81, ,498 7,378 45, to maturit~ 40,696 5,318 46,014 b) Capital leases - unsupported Currently there are no capital leases held by the jurisdiction. 522, , ,633

17 ST. PAUL EDUCATION REGIONAL DIVISION NO.1 Year Ended August 31, Unamortized capital allocations Unamortized capital allocations represent externally restricted supported capital funds that have been expended, but have yet to be amortized over the useful life of the related capital asset. The unamortized capital allocations account balance is increased by transfers of deferred capital allocations expended, as well as fully supported debenture principal repayments Consisting of: Opening balance $ 39,596,127 $ 38,373,097 Expended capital allocations (Note 11) 100,195 2,343,489 Supported debenture loan principal repayments 307, ,878 Net book value of supported asset disposal Less ca~ital allocation for amortization {1,572,637}!1,501,337~ 14. Operating reserves $ 38,430,701 $ 39,596,127 Transfers from Transfers O~enin9 O~erations to O~erations Closing Instruction $ 298,000 $ (138,000) $ $ 160,000 Administration 399, ,657 Operations/maintenance 1,916,143 1,916,143 Trans~ortation 300, ,000 Balance, end of period $ 2,913,800 $ (138,000) $ $ 2,775, Capital reserves Transfers from Transfers O~enin9 O~erations to O~erations Closing Egui~ment $ $ 409,500 $ (136,744) $ 272,756 Balance, end of period $ $ 409,500 $ $ (136,744) $ 272,756

18 ST. PAUL EDUCATION REGIONAL DIVISION NO.1 Year Ended August 31, Financial instruments It is management's policy to control the risks associated with financial instruments including avoidance of undue concentrations of risk where possible. This requires a credit review history of customers to mitigate credit risk, and entering into long term debt contracts with fixed interest rates where possible. The division does not have any foreign currency transactions or hedge activities. a) Credit risk Credit risk arises from the potential that a counter party will fail to perform its obligations. The division is exposed to minimal credit risk from customers. In order to reduce its credit risk, the division reviews a new customer's credit history before extending credit and conducts regular reviews of its existing customers' credit performance. An allowance for doubtful accounts is established based upon factors surrounding the credit risk of specific accounts, historical trends and other information. The School Board is dependant on Alberta Education as the major provider for funding as discussed in the Economic Dependence note. See Note 24. b) Fair value The division's carrying value of cash and cash equivalents, accounts receivable and accounts payable approximates its fair value due to the immediate or short term maturity of these instruments. The division has invested surplus funds in accordance with Section 60(2)(d) of the School Act. The carrying value of the long term debt approximates the fair value as the interest rates are consistent with the current rates offered to the School Division for debt with similar terms. c) Interest rate Interest rate risk is the risk that the value of a financial instrument might be adversely affected by a change in the interest rates. In seeking to minimize the risks from interest rate fluctuations, the division manages exposure through its normal operating and financing activities. The division is exposed to interest rate risk primarily through its long term debt. 17. Indebtedness a) Line of credit The division has negotiated a line of credit in the amount of $2,500,000 that bears interest at bank prime less 1/2%. This line of credit, which is secured by a borrowing bylaw and a security agreement, covers all revenue of the division. There was no balance outstanding on the line of credit at August 31, b) Credit card The division has approved a combined credit card charge limit of $160,000 through the U.S. Bank Canada. The credit cards are assigned to various individuals throughout the school division and have varying credit lim its. The balances are paid in full each month by the due date and no interest charges were incurred during the year. The combined credit card balance outstanding at August 31, 2011 was nil.

19 '. ST. PAUL EDUCATION REGIONAL DIVISION NO.1 Year Ended August 31, Commitments St. Paul Education Regional Division No.1 is committed to the following government funded projects: modernization of Racette school and replacement of the Two Hills Mennonite school. The final funding allottment for these two projects has not been announced. In addition, the division is committed to a modernization and addition project for the gymnasium upgrade at F.G.Miller Junior Senior High School in Elk Point. The funding approved for this project is $5,683, Contingencies a) Contingent assets The division is a member of a reciprocal insurance exchange called ASBIE. 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 the equity is subject to liability claims. b) Contingent liabilities The division is a member of the reciprocal insurance exchange ASBIE. Under the terms of membership, the division could become liable for its proportionate share of any claim losses in excess of the funds held by the exchange. Any liability incurred would be accounted for as a current transaction in the year the losses are determined.

20 ST. PAUL EDUCATION REGIONAL DIVISION NO.1 Year Ended August 31, Related party transactions Effective , and in accordance with criteria set out in PSAB 1300, which is the financial reporting framework for the Government of Alberta, school jurisdictions are deemed to be controlled by the Government of Alberta. There is no significant difference between the related party disclosures required under PSAB and the not-for-profit reporting frameworks. All entities consolidated or accounted for on a modified equity basis in the accounts of the Government of Alberta are now related parties of school jurisdictions. These include government departments, health authorities, post-secondary institutions and other school jurisdictions in Alberta. All related party transactions are in the normal course of business and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties. Balances Transactions Government of Alberta Education Finance Other Gov't of Alberta depts. Capital funding Assets (@ cost or net realizable value) $ 61,169 28,493 5, ,753 Liabilities (@ fair value) Revenues Expenses $ 413,472 28,493 $ 34,314,952 69, , ,195 $ 69,180 T_O_T_A_L_2_0_10_-1_1 $ 4_4_1_,9_65 $ 209,215 $ 34,803,622 $ 69,180 T_O_T_A_L_2_0_09_-_10 $ ~ 6_1_9_,2_09 $ 957,562 $ 35,382,213 $ 106,467

21 .. I,. 1 \ ST. PAUL EDUCATION REGIONAL DIVISION NO.1 Year Ended August 31, Remuneration and monetary incentives The St. Paul Education Regional Division No.1 has paid or accrued expenses for the year ended August 31,2011 to or on behalf of the following positions and persons in groups as follows. Note that benefits for the SecfTreas include the employer share of Local Authorities Pension Plan, whereas benefits for the Superintendent do not include Alberta Education contributions for the Teachers Retirement Fund pension plan. Benefits and Reimbursed FTE Remuneration Allowances Total Expenses $ $ $ $ Darrell Younghans (Chairman) 1 15,615 4,347 19,962 6,342 Other Board Members: Rhonda Lafrance 1 17,016 4,366 21,382 5,829 Rhea Looy ,884 3,649 18,533 8,590 Maureen Miller 1 17,067 4,367 21,434 5,807 Deb Pederson 1 18,336 4,431 22,767 11,175 Heather Starosielski ,264 3,706 19,970 9,306 Ron Rudkowsky 1 16,666 3,328 19,994 10,910 Past Don Padlesky 0.2 1, , Steve Upham 0.2 1, , ,610 28, ,559 58,588 Superintendent 1 154,500 17, ,105 13,545 SecretaryfTreasurer 1 126,360 31, ,660 1,983 Salaries - Certificated ,411,100 1) 2,415,301 25,826,401 Salaries - Uncertificated ,380,727 2,202,607 12,583,334 34,072,687 4,666,813 38,739,500 15,528 34,191,297 4,695,762 38,887,059 74,116 1) Certified salaries include $217,500 of ERIP "Trustees $1,200 annual communications allowance is included in reimbursed expenses.

22 ST. PAUL EDUCATION REGIONAL DIVISION NO.1 Year Ended August 31, Asset retirement obligations Asset retirement obligations represent legal obligations associated with the retirement of a tangible long-lived asset that results from its acquisition, construction, development. or normal operation. The division has a legal obligation to remove hazardous material at the site of any school building. It is management's position that no obligation exists at this time and thus no liability has been recognized. 23. Capital disclosures The division manages its capital to safeguard it's ability to deliver services to the schools located within the School Division boundaries and in the long term, to continue to plan for and build sufficient physical capacity to meet future needs for school services. The division's overall strategy remains unchanged from The majority of the operating funds for the division is from Alberta Education which is received each month. Management monitors its working capital and cash flow forecasts. The division defines its capital as the amounts included in deferred capital contributions (Note 11) and unrestricted net assets. A significant portion of the division's capital is externally restricted. The division's unrestricted capital is funded primarily by Alberta Education. The division has spending policies and cash management procedures to ensure the division can meet its capital obligations. Alberta Education approves school facility construction projects based on long term capital plans and provides the majority of the funding through one-time grants. The division funds the required equipment and systems by a combination of allocating a portion of operating funds and fund raising activities by schools. Capital plans are evaluated each year by management. The division completed the construction of a new central office during the year. During 2011, the division received approval of $5,683,000 in grant funding for the modernization and addition for the gymnasium upgrade at F.G.Miller Junior Senior High School in Elk Point. The division has also received approval for a modernization project at Racette school and the replacement of the Two Hills Mennonite school. The final funding allottment for these two oroiects has not been announced. Under the School Act, the division must receive ministerial approval for a deficit budget, borrowing and the sale of any land or buildings. The division has complied with all externally imposed restrictions of Alberta Education. 24. Economic dependence on related third party St. Paul Education Regional Division No.1 's primary source of income is from the Alberta Government. In addition, the division receives substantial funding from the Federal Government for First Nation students. The division's ability to continue viable operations is dependent on this funding. 25. Budget amounts The budget was prepared by the division and approved by the Board of Trustees on November It is presented for information purposes only and has not been audited. 26. Comparative figures The comparative figures have been reclassified where necessary to conform to the 2010/2011 presentation.

23 School Jurisdiction Code: 2185 UNAUDITED SCHEDULES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2011 [School Act, Section 276] St. Paul Education Regional Division No. 1 Legal Name of School Jurisdiction Ave. St. Paul, Alberta T0A 3A3 Mailing Address tel fax Telephone and Fax Numbers Declaration of Secretary-Treasurer / Chief Financial Officer To the best of my knowledge and belief, these unaudited schedules have been prepared following Alberta Education's reporting requirements for Alberta school jurisdictions. These schedules were submitted to the board for information purposes. SECRETARY TREASURER OR TREASURER Jean Champagne Name "Dated and Signed Electronically" Signature Dated 23-Nov-11 c.c. ALBERTA EDUCATION, Financial Reporting & Accountability Branch 8th Floor Commerce Place, Street, Edmonton AB T5J 4L5 Cindy.Wang@gov.ab.ca PHONE: (780) FAX: (780)

24 School Jurisdiction Code: 2185 TABLE OF CONTENTS Page SCHEDULE A Allocation of Revenues and Expenses to Programs 3 SCHEDULE B School Generated Funds (SGF) 4 SCHEDULE C Operations and Maintenance Program Expense Details 5 page 2 of 5

25 SCHEDULE A School Jurisdiction Code: 2185 ALLOCATION OF REVENUES AND EXPENSES TO PROGRAMS /2011 Operations and Maintenance of Board & REVENUES ECS Grades 1-12 Schools & System External Instruction Instruction Maintenance Shops Transportation Administration Services TOTAL (1) Alberta Education $1,479,997 $23,528,508 $4,472,927 $2,997,042 $1,836,478 $0 $34,314,952 (2) Other - Government of Alberta $0 $319,295 $69,180 $0 $0 $0 $388,475 (3) Federal Government and First Nations $283,705 $9,882,790 $1,299,668 $28,430 $471,946 $11,966,539 (4) Other Alberta school authorities $0 $0 $0 $0 $0 $0 $0 (5) Out of province authorities $0 $0 $0 $0 $0 $0 $0 (6) Alberta Municipalities-special tax levies $0 $0 $0 $0 $0 $0 $0 (7) Instruction resource fees $7,666 $220,311 $227,977 (8) Transportation fees-ecs $2,441 $2,441 (9) Transportation fees-grades 1-12 $38,238 $38,238 (10) Other sales and services $0 $243,726 $149,660 $24,117 $42,748 $21,371 $481,622 (11) Investment income $3,127 $60,086 $10,450 $5,309 $4,518 $83,490 (12) Gifts and donations $0 $40,054 $0 $0 $0 $0 $40,054 (13) Rental of facilities $0 $0 $65,868 $18,647 $0 $0 $84,515 (14) Gross school generated funds $0 $1,270,906 $0 $0 $0 $0 $1,270,906 (15) Gains on disposal of capital assets $0 $0 $0 $0 $260,483 $0 $260,483 (16) Amortization of capital allocations $0 $225,386 $1,347,251 $0 $0 $1,572,637 (17) Other revenue $0 $0 $0 $0 $0 $0 (18) TOTAL REVENUES $1,774,495 $35,791,062 $7,415,004 $3,114,224 $2,616,173 $21,371 $50,732,329 EXPENSES (19) Certificated salaries $938,663 $22,178,358 $448,579 $0 $23,565,600 (20) Certificated benefits $96,448 $2,284,901 $51,557 $0 $2,432,906 (21) Non-certificated salaries and wages $380,498 $6,995,150 $2,075,478 $507,706 $666,865 $0 $10,625,697 (22) Non-certificated benefits $64,847 $1,547,876 $414,737 $66,410 $168,986 $0 $2,262,856 (23) SUB - TOTAL $1,480,456 $33,006,285 $2,490,215 $574,116 $1,335,987 $0 $38,887,059 (24) Services, contracts and supplies $150,638 $2,613,886 $2,816,988 $2,194,206 $475,853 $21,371 $8,272,942 (25) Gross school generated funds $0 $1,270,906 $1,270,906 (26) Amortization of capital assets $0 $417,473 $1,421,038 $150,067 $153,225 $0 $2,141,803 (27) Interest and charges $0 $0 $69,180 $0 $6,355 $0 $75,535 (28) Losses on disposal of capital assets $0 $0 $0 $0 $0 $0 $0 (29) Other expense $0 $0 $0 $0 $0 $0 (30) TOTAL EXPENSES $1,631,094 $37,308,550 $6,797,421 $2,918,389 $1,971,420 $21,371 $50,648,245 (31) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES $143,401 ($1,517,488) $617,583 $195,835 $644,753 $0 $84,084 page 3 of 5

26 School Jurisdiction Code: 2185 SCHEDULE B SCHOOL GENERATED FUNDS (SGF) /2011 Unexpended SGF - Opening Balance August 31, 2010 (Note 1) $627,168 Sources of School Generated Funds: Gross SGF Related Expenses Net SGF Fundraising activities $627,041 $455,404 $171,636 Student fees (non-instructional) (note 1) $408,713 $199,940 $208,773 Donations and grants to schools $96,139 $56,453 $39,686 Other (describe): $136,661 $97,110 $39,551 Net Additions to SGF $1,268,553 $808,907 $459,646 Net SGF Available $1,086,814 Uses of Net School Generated Funds: Extra-curricular activities $361,120 Field trips $77,382 Other (describe): Equipment $23,498 Total Uses of Net SGF (Note 2) $461,999 Unexpended SGF - Closing Balance August 31, 2011 (Note 3) $624,815 School Generated Funds (SGF) are funds raised in the community for student activities that come under the control and responsibility of school management. These funds are usually collected and retained at the school for expenditures paid at the school level. SGF does not include any other funds collected at the school but remitted to central office and accounted for by central office (facility rentals, capital assets purchases, etc.) Notes: 1 Excludes fees collected pursuant to Section 60(2)(j) of the School Act (fees related to instructional supplies or materials - essentially textbooks, resource materials in lieu of textbooks, media, software, and materials for classrooms). Fees charged for CEU-related activities are recorded as instruction resource fees, not SGF. 2 The sum of "total related expenses" and "total uses of net SGF" is reported as "gross school generated funds" in the Statement of Revenues & Expenses. 3 Unexpended SGF is reported as SGF assets and SGF liabilities in the Statement of Financial Position. page 4 of 5

27 School Jurisdiction Code: 2185 SCHEDULE C OPERATIONS AND MAINTENANCE OF SCHOOLS & MAINTENANCE SHOPS PROGRAM EXPENSE DETAILS /2011 Expensed Unsupported Utilities IMR & Facility Planning & Amortization SUB-TOTAL Supported TOTAL EXPENSES Custodial Maintenance and Modular Unit Operations & Other Operations & Capital & Debt Operations and Telecommunications Relocations Administration Expenses Maintenance Services Maintenance Uncertificated salaries and wages $1,426,098 $583,960 $0 $0 $65,420 $2,075,478 $2,075,478 Uncertificated benefits $271,678 $125,605 $0 $0 $17,454 $414,737 $414,737 Sub-total Remuneration $1,697,776 $709,565 $0 $0 $82,874 $2,490,215 $2,490,215 Supplies and services $227,831 $315,252 $0 $1,242,338 $3,065 $1,788,486 $1,788,486 Electricity $490,534 $490,534 $490,534 Natural gas/heating fuel $427,535 $427,535 $427,535 Sewer and water $36,171 $36,171 $36,171 Telecommunications $12,720 $12,720 $12,720 Insurance $61,542 $61,542 $61,542 Amortization of capital assets Supported $1,347,251 $1,347,251 Unsupported $0 $73,787 $73,787 $73,787 Total Amortization $0 $73,787 $73,787 $1,347,251 $1,421,038 Interest on capital debt Supported $69,180 $69,180 Unsupported $0 $0 $0 $0 Other interest charges $0 $0 $0 Losses on disposal of capital assets $0 $0 $0 TOTAL EXPENSES $1,925,607 $1,024,817 $966,960 $1,242,338 $147,481 $73,787 $5,380,990 $1,416,431 $6,797,421 SQUARE METRES School buildings 63,780.0 Non school buildings 1,404.0 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 Relocations: All operational expenses associated with non-capitalized Infrastructure Maintenance Renewal projects (AKA IMP and BQRP) and modular unit (portable) relocations. 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 joint-use 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. page 5 of 5