AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2017

Transcription

1 School Junsdlctlon Code: 47 AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2017 [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 WhitecourtAB T7S 1P6 Malling Address (780) (780) Telephone & Fax Numbers, and Address SCHOOL JURISDICTION MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING The financial statements of Ulling Waters Calholic ~lonal Division No, 42 presented to Alberta Education have been prepared by school Jurisdictlon management which has responsibility lo their preparation, Integrity and objectivity. The financial statements, Including notes, have been prepared in accordane1 with canadlan Public Sector Accounting Standards and follow formal prescribed by Alberta Education In fulfilling Its reporting responsibilities, managemenl has maintained Internal control systems and procedures deslgne< lo provide reasonable assurance that the school jurisdiction's assets are safeguarded, that transactions are execulec in accordance with appropriate authorization and that accounting records may be relied upon to properly reftect th1 school jurisdiction's transactions. The effectiveness of the control systems Is supported by the selection and tralnlne of qualified personnel, an organizational structure that provides an appropriate division of responslbulty 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 auditec 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 audllors 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 reftect. In all material respects, the financial position results of operations, remeasurement gains and losses, changes In net financial assets (debt), and cash flows for the yea1 in accordance with Canadian Public Sector AccounUng Standards. BOARD CHAIR~/ ::~~ Ms.Dana Kentner ~~~ ~~~~~~~~~Name~~~~~~~~~ SI na re Ms. JoAnne Lanctot Aime SUPERINTENDENT SECRETARYTREASURER OR TREAS~U Mr. Bryan Turner _ ~ Tame ~ure November 29, 2017 Boardapproved Release Date ~ c:.c:. ALBERTA EDUCATION, Flnanc:lal Reporting & Ac:countablllty Branch 8th Floor Commerce Place, Street, Edmonton AB TSJ 4L5 EDC.FRA@gov.ab.ca PHONE: MelLing: ( ; Robert: (780) FAX: (780) 22&996 Version 20 17U719 1

2 School Jurisdiction Code: 47 TABLE OF CONTENTS Page INDEPENDENT AUDITOR'S REPORT 3 STATEMENT OF FINANCIAL POSITION 4 STATEMENT OF OPERATIONS 5 STATEMENT OF CASH FLOWS 6 STATEMENT OF CHANGE IN NET DEBT 7 STATEMENT OF REMEASUREMENT GAINS AND LOSSES 8 Schedule 1: SCHEDULE OF CHANGES IN ACCUMULATED SURPLUS 9 Schedule 2: SCHEDULE OF CAPITAL REVENUE 11 Schedule 3: SCHEDULE OF PROGRAM OPERATIONS 12 Schedule 4: SCHEDULE OF PLANT OPERATIONS AND MAINTENANCE EXPENSES 13 Schedule 5: SCHEDULE OF CASH, CASH EQUIVALENTS, AND PORTFOLIO INVESTMENTS 14 Schedule 6: SCHEDULE OF CAPITAL ASSETS 15 Schedule 7: SCHEDULE OF REMUNERATION AND MONETARY INCENTIVES 16 NOTES TO THE FINANCIAL STATEMENTS 17 Schedule 8: UNAUDITED SCHEDULE OF FEE REVENUES 28 Schedule 9: UNAUDITED SCHEDULE OF DIFFERENTIAL FUNDING 29 Schedule 10: UNAUDITED SCHEDULE OF CENTRAL ADMINISTRATION EXPENSES 30 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, 2017, 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, 2017 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 29, 2017 Edmonton, Alberta Hawkings Epp Dumont LLP Chartered Accountants

4 STATEMENT OF FINANCIAL POSITION As at August 31, 2017 (in dollars) School Jurisdiction Code: FINANCIAL ASSETS Cash and cash equivalents (Schedule 5) 2,316,039 2,887,540 Accounts receivable (net after allowances) (Note 2) 1,057, ,319 Portfolio investments Other financial assets Total financial assets 3,373,436 3,861,859 LIABILITIES Bank indebtedness Accounts payable and accrued liabilities (Note 3) 1,173,964 1,205,371 Deferred revenue (Note 4) 41,845,431 27,776,047 Employee future benefits liabilities Liability for contaminated sites Other liabilities Debt (Note 5) Supported: Debentures and other supported debt 96, ,212 Unsupported: Debentures and capital loans Mortgages Capital leases Total liabilities 43,115,967 29,291,630 Net debt (39,742,531) (25,429,771) NONFINANCIAL ASSETS Tangible capital assets (Schedule 6) Land 725, ,852 Construction in progress 22,647,712 7,983,769 Buildings 46,706,254 Less: Accumulated amortization (27,136,777) 19,569,477 20,217,805 Equipment 4,776,253 Less: Accumulated amortization (4,268,041) 508, ,729 Vehicles 121,262 Less: Accumulated amortization (70,593) 50,669 65,222 Computer Equipment 1,214,602 Less: Accumulated amortization (935,853) 278, ,148 Total tangible capital assets 43,780,671 29,775,525 Prepaid expenses 97,345 83,006 Other nonfinancial assets Total nonfinancial assets 43,878,016 29,858,531 Accumulated surplus (Schedule 1; Note 6) 4,135,485 4,428,760 Accumulating surplus / (deficit) is comprised of: Accumulated operating surplus (deficit) 4,135,485 4,428,760 Accumulated remeasurement gains (losses) 4,135,485 4,428,760 Contractual obligations Contingent liabilities (Note 7) The accompanying notes and schedules are part of these financial statements. 4

5 STATEMENT OF OPERATIONS For the Year Ended August 31, 2017 (in dollars) School Jurisdiction Code: 47 Budget Actual Actual REVENUES Alberta Education Other Government of Alberta Federal Government and First Nations Other Alberta school authorities Out of province authorities Alberta municipalitiesspecial tax levies Property taxes Fees (Schedule 8) Other sales and services (Schedule 8) Investment income Gifts and donations Rental of facilities Fundraising Gains on disposal of capital assets 22,447,500 26,737,231 25,941,454 84,489 18,025 65,058 65,562 76, ,531 1,292,100 1,472,932 1,421, , , ,023 67, , ,549 31,945 23,534 25,729 91, ,265 66,197 8,960 3, ,601 53,622 65,772 Other revenue 10,018 EXPENSES Total revenues 25,273,213 29,427,255 28,671,172 Instruction ECS 1,637,700 2,345,164 2,037,450 Instruction Grades ,955,200 21,884,575 21,069,583 Plant operations and maintenance 4,215,750 3,916,234 4,128,202 Transportation 186,150 56, ,256 Board & system administration 1,204,500 1,517,804 1,654,013 External services Total expenses 25,199,300 29,720,530 29,068,504 Operating surplus (deficit) 73,913 (293,275) (397,332) 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, 2017 (in dollars) CASH FLOWS FROM: A. OPERATING TRANSACTIONS Operating surplus (deficit) (293,275) (397,332) Add (Deduct) items not affecting cash: Total amortization expense 1,883,382 1,893,743 Gains on disposal of tangible capital assets Losses on disposal of tangible capital assets Expended deferred capital revenue recognition (1,701,457) (1,734,424) Deferred capital revenue writedown / adjustment 4 Donations in kind Changes in: Accounts receivable (83,078) 17,279 Prepaids (14,339) (45,026) Other financial assets Nonfinancial assets Accounts payable, accrued and other liabilities (31,407) 228,689 Deferred revenue (excluding EDCR) 608, ,688 Employee future benefit liabilities Other (describe) Total cash flows from operating transactions 368, ,621 B. CAPITAL TRANSACTIONS Purchases of tangible capital assets Land Buildings (315,578) (655,901) Equipment (410,807) (109,917) Vehicles Computer equipment Net proceeds from disposal of unsupported capital assets Other (describe) Total cash flows from capital transactions (726,385) (765,818) C. INVESTING TRANSACTIONS Purchases of portfolio investments Dispositions of portfolio investments Remeasurement (gains) losses reclassified to the statement of operations Other (Describe) Other (describe) Total cash flows from investing transactions D. FINANCING TRANSACTIONS Issue of debt Repayment of debt (213,640) (224,160) Other factors affecting debt (describe) Issuance of capital leases Repayment of capital leases Other (describe) Other (describe) Total cash flows from financing transactions (213,640) (224,160) Increase (decrease) in cash and cash equivalents (571,501) (50,357) Cash and cash equivalents, at beginning of year 2,887,540 2,937,897 Cash and cash equivalents, at end of year 2,316,039 2,887,540 The accompanying notes and schedules are part of these financial statements. 6

7 School Jurisdiction Code: 47 STATEMENT OF CHANGE IN NET DEBT For the Year Ended August 31, 2017 (in dollars) Budget Operating surplus (deficit) 73,913 (293,275) (397,332) Effect of changes in tangible capital assets Acquisition of tangible capital assets (15,888,528) (8,249,103) Amortization of tangible capital assets 1,861,500 1,883,382 1,893,743 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 1,861,500 (14,005,146) (6,355,360) Changes in: Prepaid expenses (14,339) (45,026) Other nonfinancial assets Net remeasurement gains and (losses) Endowments Decrease (increase) in net debt 1,935,413 (14,312,760) (6,797,718) Net debt at beginning of year (25,429,771) (25,429,771) (18,632,053) Net debt at end of year (23,494,358) (39,742,531) (25,429,771) 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, 2017 (in dollars) Accumulated remeasurement gains (losses) at beginning of year Prior Period Adj. (Explain) Linked to Sch. 1 Prior Period Adjustment (Explain) 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 SCHEDULE 1 SCHEDULE OF CHANGES IN ACCUMULATED SURPLUS for the Year Ended August 31, 2017 (in dollars) School Jurisdiction Code: 47 Balance at August 31, 2016 Prior period adjustments: 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 4,428,760 4,428,760 3,147,454 1,281,306 Adjusted Balance, August 31, ,428,760 4,428,760 3,147,454 1,281,306 Operating surplus (deficit) (293,275) (293,275) (293,275) Board funded tangible capital asset additions 74,011 (74,011) 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 Reinvested endowment income Direct credits to accumulated surplus (Describe) 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 (1,883,382) 1,883,382 1,701,457 (1,701,457) 185,361 (185,361) Net transfers from capital reserves Assumption/transfer of other operations' surplus Other Changes Balance at August 31, ,135,485 4,135,485 3,039,540 1,095,945 9

10 SCHEDULE 1 SCHEDULE OF CHANGES IN ACCUMULATED SURPLUS for the Year Ended August 31, 2017 (in dollars) School Jurisdiction Code: 47 INTERNALLY RESTRICTED RESERVES BY PROGRAM School & Instruction Related Operations & Maintenance Board & System Administration Transportation External Services Balance at August 31, 2016 Prior period adjustments: Operating Reserves Capital Reserves Operating Reserves Capital Reserves Operating Reserves Capital Reserves Operating Reserves Capital Reserves Operating Reserves Capital Reserves 1,074, ,720 76,303 Adjusted Balance, August 31, 2016 Operating surplus (deficit) 1,074, ,720 76,303 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 Reinvested endowment income Direct credits to accumulated surplus (Describe) 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, 2017 (185,361) 888, ,720 76,303 10

11 SCHEDULE 2 SCHEDULE OF CAPITAL REVENUE (EXTERNALLY RESTRICTED CAPITAL REVENUE ONLY) for the Year Ended August 31, 2017 (in dollars) 47 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, ,859 26,628,071 Prior period adjustments Adjusted balance, August 31, ,859 26,628,071 Add: Unexpended capital revenue received from: Alberta Education school building & modular projects (excl. IMR) 385,161 Infrastructure Maintenance & Renewal capital related to school facilities Other sources: Other sources: Unexpended capital revenue receivable from: Alberta Education school building & modular (excl. IMR) 35,955 Other sources: Other sources: Interest earned on unexpended capital revenue Other unexpended capital revenue: Proceeds on disposition of supported capital Insurance proceeds (and related interest) Donated tangible capital assets: Alberta Infrastructure managed projects 15,162,143 Transferred in (out) tangible capital assets net book value) Expended capital revenue current year (652,375) 652,375 Surplus funds approved for future project(s) Other adjustments: Deduct: Net book value of supported tangible capital dispositions or writeoffs Other adjustments: Capital revenue recognized Alberta Education 1,701,457 Capital revenue recognized Other Government of Alberta Capital revenue recognized Other revenue Balance at August 31, ,600 40,741,132 (A) (B) (C) (D) Balance of Unexpended Deferred Capital Revenue at August 31, 2017 (A) + (B) + (C) + (D) 460,600 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. Please specify department if funds received from a source other than Alberta Education. (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 SCHEDULE 3 School Jurisdiction Code: 47 SCHEDULE OF PROGRAM OPERATIONS for the Year Ended August 31, 2017 (in dollars) Plant Operations Board & REVENUES Instruction and System External ECS Grades 1 12 Maintenance Transportation Administration Services TOTAL TOTAL (1) Alberta Education 2,109,877 19,291,821 3,913, ,547 1,284,186 26,737,231 25,941,454 (2) Other Government of Alberta 18,025 18,025 65,058 (3) Federal Government and First Nations 76,186 76, ,531 (4) Other Alberta school authorities (5) Out of province authorities (6) Alberta municipalitiesspecial tax levies (7) Property taxes 1,472,932 1,472,932 1,421,939 (8) Fees 551,776 34, , ,023 (9) Other sales and services 306, , ,549 (10) Investment income 1,469 22,065 23,534 25,729 (11) Gifts and donations 133, ,265 66,197 (12) Rental of facilities 8,960 8,960 3,920 (13) Fundraising 53,622 53,622 65,772 (14) Gains on disposal of tangible capital assets (15) Other revenue 10,018 10,018 (16) TOTAL REVENUES 2,109,877 21,907,040 3,931, ,262 1,306,251 29,427,255 28,671,172 EXPENSES (17) Certificated salaries 752,386 11,498, ,536 12,470,225 12,216,876 (18) Certificated benefits 197,507 2,566,674 20,219 2,784,400 2,801,958 (19) Noncertificated salaries and wages 847,086 2,472, , ,644 4,674,755 4,107,856 (20) Noncertificated benefits 277, , , ,024 1,155,903 1,034,002 (21) SUB TOTAL 2,074,209 17,101,132 1,022, ,423 21,085,283 20,160,692 (22) Services, contracts and supplies 270,955 4,619,198 1,171,106 42, ,381 6,733,840 6,949,011 (23) Amortization of supported tangible capital assets 1,694,219 7,238 1,701,457 1,734,424 (24) Amortization of unsupported tangible capital assets 164,245 10,365 7, , ,319 (25) Supported interest on capital debt 18,025 18,025 65,058 (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 2,345,164 21,884,575 3,916,234 56,753 1,517,804 29,720,530 29,068,504 (31) OPERATING SURPLUS (DEFICIT) (235,287) 22,465 15, ,509 (211,553) (293,275) (397,332) 12

13 SCHEDULE 4 School Jurisdiction Code: 47 SCHEDULE OF PLANT OPERATIONS AND MAINTENANCE EXPENSES for the Year Ended August 31, 2017 (in dollars) Expensed IMR, Unsupported TOTAL Utilities Modular Unit Facility Planning & Amortization Supported TOTAL Operations and EXPENSES Custodial Maintenance and Relocations & Operations & Other Capital & Debt Operations and Maintenance Telecomm. Lease Payments Administration Expenses Services Maintenance Uncertificated salaries and wages 547, ,864 47, , ,810 Uncertificated benefits 147,098 42,728 8, , ,289 Subtotal Remuneration 694, ,592 56,170 1,022,519 1,116,099 Supplies and services 56, , ,928 8, , ,091 Electricity 209, , ,493 Natural gas/heating fuel 164, , ,738 Sewer and water 64,954 64,954 65,811 Telecommunications 52,471 52,471 29,976 Insurance 88,502 88,502 88,376 ASAP maintenance & renewal payments Amortization of tangible capital assets Supported 1,694,219 1,694,219 1,727,186 Unsupported 10,365 10,365 9,374 Total Amortization 10,365 1,694,219 1,704,584 1,736,560 Interest on capital debt Supported 18,025 18,025 65,058 Unsupported Lease payments for facilities Other interest charges Losses on disposal of capital assets TOTAL EXPENSES 750, , , , ,672 10,365 1,712,244 3,916,234 4,128,202 SQUARE METRES School buildings 24, ,813.4 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. Unsupported Amortization & Other Expenses: All expenses related to unsupported capital assets amortization and interest on unsupported capital debt. Supported Capital & Debt Services: All expenses related to supported capital assets amortization and interest on supported capital debt. 13

14 SCHEDULE 5 School Jurisdiction Code: 47 SCHEDULE OF CASH, CASH EQUIVALENTS, AND PORTFOLIO INVESTMENTS for the Year Ended August 31, 2017 (in dollars) Cash & Cash Equivalents Average Effective (Market) Yield Cost Amortized Cost Amortized Cost Cash 2,262,153 2,829,858 Cash equivalents Government of Canada, direct and guaranteed 0.00% Provincial, direct and guaranteed 0.00% Corporate 0.00% Municipal 0.00% Pooled investment funds 0.00% Other, including GIC's 1.50% 53,886 57,682 Total cash and cash equivalents 0.03% 2,316,039 2,887,540 See Note 3 for additional detail. Portfolio Investments Average Effective (Market) Yield Cost Fair Value Balance Balance Long term deposits 0.00% Guaranteed investment certificates 0.00% Fixed income securities Government of Canada, direct and guaranteed 0.00% Provincial, direct and guaranteed 0.00% Municipal 0.00% Corporate 0.00% Pooled investment funds 0.00% Total fixed income securities 0.00% Equities Canadian 0.00% Foreign 0.00% Total equities 0.00% Supplemental integrated pension plan assets 0.00% Restricted investments 0.00% Other (Specify) 0.00% Other (Specify) 0.00% Total portfolio investments 0.00% See Note 5 for additional detail. The following represents the maturity structure for portfolio investments based on principal amount: Under 1 year 0.0% 0.0% 1 to 5 years 0.0% 0.0% 6 to 10 years 0.0% 0.0% 11 to 20 years 0.0% 0.0% Over 20 years 0.0% 0.0% 0.0% 0.0% 14

15 SCHEDULE 6 School Jurisdiction Code: 47 SCHEDULE OF CAPITAL ASSETS for the Year Ended August 31, 2017 (in dollars) Tangible Capital Assets Computer Construction In Hardware & Total Total Land Progress Buildings Equipment Vehicles Software Estimated useful life 2550 Years 510 Years 510 Years 35 Years Historical cost Beginning of year 725,852 7,983,769 45,892,477 4,365, ,262 1,214,602 60,303,408 52,054,305 Prior period adjustments Additions 15,351, , ,807 15,888,527 8,249,103 Transfers in (out) (687,520) 687,520 Less disposals including writeoffs Historical cost, August 31, ,852 22,647,712 46,706,254 4,776, ,262 1,214,602 76,191,935 60,303,408 Accumulated amortization Beginning of year 25,674,672 4,019,717 56, ,454 30,527,883 28,634,140 Prior period adjustments Amortization 1,462, ,324 14, ,399 1,883,381 1,893,743 Other additions Transfers in (out) Less disposals including writeoffs Accumulated amortization, August 31, ,136,777 4,268,041 70, ,853 32,411,264 30,527,883 Net Book Value at August 31, ,852 22,647,712 19,569, ,212 50, ,749 43,780,671 Net Book Value at August 31, ,852 7,983,769 20,217, ,729 65, ,148 29,775,525 Total cost of assets under capital lease Total amortization of assets under capital lease

16 SCHEDULE 7 School Jurisdiction Code: 47 SCHEDULE OF REMUNERATION AND MONETARY INCENTIVES for the Year Ended August 31, 2017 (in dollars) Negotiated Performance Other Accrued Board Members: FTE Remuneration Benefits Allowances Bonuses ERIP's / Other Paid Unpaid Benefits Expenses Chair Dana Kentner ,380 5, ,658 Alena Blahynka ,830 5, ,187 Gemma Christie , ,354 Robert Dias ,530 4, ,016 Darrell Ghostkeeper ,340 5, ,355 Irene Sawyer ,040 2, , Subtotal ,740 23, ,745 Superintendent, JoAnne Lanctot ,731 29, ,230 Corporate Treasurer, Tamara Sloboda ,250 8, Corporate Treasurer, Bryan Turner ,703 20, ,423 Corporate Secretary, Lynn Sloat ,933 21, Certificated teachers ,286,494 2,754, Noncertificated other ,355,129 1,082, TOTALS ,144,980 3,940, ,991 16

17 LIVING WATERS CATHOLIC REGIONAL DIVISION NO. 42 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2017 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. 1. 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, 2017 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 as follows: Buildings Vehicles & Buses Computer Hardware & Software Other Equipment & Furnishings 2550 years 510 years 5 years 5 years 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. 18

19 LIVING WATERS CATHOLIC REGIONAL DIVISION NO. 42 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2017 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 the contributions that require the Regional Division to use the asset in a prescribed manner 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 are 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. The following items fall under this category: Noncapital contributions for specific purposes are recorded as deferred revenue and recognized as revenue in the year the stipulated related expenses are incurred; Unexpended Deferred Capital Revenue; or Expended Deferred Capital Revenue. 19

20 LIVING WATERS CATHOLIC REGIONAL DIVISION NO. 42 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2017 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. 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, 2017, the amount contributed by the Government was 1,454,413 (2016 1,448,555). The Regional Division 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 88,984 for the year ended August 31, 2017 ( ,415). At December 31, 2016 the Local Authorities Pension Plan reported an actuarial deficiency of 637,357,000 (2015 deficiency of 923,416,000). j) Program Reporting The Regional 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. 20

21 LIVING WATERS CATHOLIC REGIONAL DIVISION NO. 42 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2017 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. 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 8. 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. 21

22 LIVING WATERS CATHOLIC REGIONAL DIVISION NO. 42 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2017 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. 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. o) Future Accounting Changes The Public Sector Accounting Board has issued the following accounting standards: PS 2200 Related Party Disclosures and PS 3420 InterEntity Transactions (effective April 1, 2017) PS 2200 defines a related party and establishes disclosures required for related party transactions. PS 3420 establishes standards on how to account for and report transactions between public sector entities that comprise a government s reporting entity from both a provider and recipient perspective. PS 3210 Assets, PS 3320 Contingent Assets and PS 3380 Contractual Rights (effective April 1, 2017) PS 3210 provides guidance for applying the definition of assets set out in Financial Statement Concepts, Section PS 1000, and establishes general disclosure standards for assets; PS 3320 defines and establishes disclosure standards on contingent assets; and PS 3380 defines and establishes disclosure standards on contractual rights. PS 3430 Restructuring Transactions (effective April 1, 2018) This standard provides guidance on how to account for and report restructuring transactions by both transferors and recipients of assets and/or liabilities, together with related program or operating responsibilities. PS 3450 Financial Instruments (effective April 1, 2019) Adoption of this standard requires corresponding adoption of PS 2601 Foreign Currency Translation, PS 1201 Financial Statement Presentation, and PS 3401 Portfolio Investments in the same fiscal period. These standards provide guidance on: recognition, measurement and disclosure of financial instruments; standards on how to account for and report transactions that are denominated in a foreign currency; general reporting principles and standards for the disclosure of information in financial statements; and how to account for and report portfolio investments. Management is currently assessing the impact of these standards on the financial statements. 22

23 LIVING WATERS CATHOLIC REGIONAL DIVISION NO. 42 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, ACCOUNTS RECEIVABLE Gross Amount 2017 Allowance for Doubtful Accounts Net Realizable Value 2016 Net Realizable Value Alberta Education Capital 87,415 87,415 51,460 Treasury Board and Finance Supported debenture principal 96,572 96, ,212 Treasury Board and Finance Accrued interest on supported debentures 4,609 4,609 15,157 Government of Alberta Ministry (RCSD Aspen Collaborative Services) 196, ,917 11,368 Federal government 207, ,217 77,654 Municipalities 397, , ,436 First Nations 4,007 4,007 30,393 Other 63,553 63,553 57,639 Total 1,057,397 1,057, , ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Alberta Education 245, ,489 Alberta Capital Finance Authority (Interest on longterm debt Supported) 4,609 15,157 Other salaries & benefit costs 375, ,845 Other trade payables and accrued liabilities 547, ,880 Total 1,173,964 1,205,371 23

24 LIVING WATERS CATHOLIC REGIONAL DIVISION NO. 42 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, DEFERRED REVENUE ADD: DEDUCT: SOURCE AND GRANT OR FUND TYPE DEFERRED 2016/ /2017 DEFERRED REVENUE Restricted Restricted Funds REVENUE as at Funds Received/ Expended as at Aug. 31, 2016 Receivable (Paid / Payable) Aug. 31, 2017 Unexpended deferred operating revenue Alberta Education: Regional Collaborative Service Delivery 35,000 35,000 Infrastructure Maintenance Renewal 307, ,803 (342,929) 550,947 SuperNet Service 67,200 (67,200) Learning and Technology Policy 57,909 (57,909) Building Capacity and Collaboration in Education 2,630 2,630 Other Government of Alberta: Northern Tier 28,455 (28,455) Other Deferred Revenue: School Generated Funds 57, (4,407) 53,886 ATA Mentorship Assistance 3,998 (3,998) Greystone Technology Grant 1,000 (1,000) Other 1,236 1,236 Total unexpended deferred operating revenue 456, ,480 (505,898) 643,699 Unexpended deferred capital revenue (Schedule 2) 691, ,116 (652,375) 460,600 Expended deferred capital revenue (Schedule 2) 26,628,071 15,814,518 (1,701,457) 40,741,132 Total 27,776,047 16,929,114 (2,859,730) 41,845, DEBT Supported debentures outstanding at August 31, 2017 have interest rates between 8% to 10%. The terms of the debentures range between 1 and 3 years, with payments made annually supported by Alberta Education 96, ,212 Debenture payments due over the next three years (to maturity) are: Principal Interest Total ,160 8,443 80, ,596 2,103 23, , ,084 Total 96,572 10, ,386 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 Schedule 1. Accumulated surplus is summarized as follows: Unrestricted surplus Operating reserves 1,095,945 1,281,306 Accumulated surplus from operations 1,095,945 1,281,306 Investment in tangible capital assets 3,039,540 3,147,454 Accumulated surplus 4,135,485 4,428,760 Accumulated surplus from operations (ASO) include funds of 171,659 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 1,095,945 1,281,306 Deduct: School generated funds included in accumulated surplus (Note 9) 171, ,927 Adjusted accumulated surplus from operations (1) 924,286 1,012,379 (1) Accumulated surplus represents funding available for use by the school jurisdiction after deducting funds committed for use by the schools. 7. 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. 8. 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 3,092 3,066 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 326, ,376 Gross Receipts: Fees 551, ,973 Fundraising 52,827 70,475 Gifts and donations 124,242 66,197 Grants to schools 9,023 Other sales and services 306, ,549 Total gross receipts 1,044,859 1,078,194 Total Related Expenses and Uses of Funds 676, ,981 Total Direct Costs Including Cost of Goods Sold to Raise Funds 469, ,980 School Generated Funds, End of Year 225, ,609 Balance included in Deferred Revenue 53,886 57,682 Balance included in Accumulated Surplus (Operating Reserves) 171, ,927 26

27 LIVING WATERS CATHOLIC REGIONAL DIVISION NO. 42 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, RELATED PARTY TRANSACTIONS All entities that are considered in the accounts of Government of Alberta are related parties of Regional Divisions. These include government departments, health authorities, postsecondary institutions and other Regional Divisions in Alberta. Balances Transactions Financial Assets (at cost or net Liabilities (at realizable amortized Revenues Expenses value) cost) Government of Alberta (GOA): Alberta Education Accounts receivable / Accounts payable 87, ,489 Unexpended deferred capital revenue 460,600 Expended deferred capital revenue 40,741,132 1,701,457 Grant revenue & expenses 23,106,588 ATRF payments made on behalf of district 1,454,413 Alberta Treasury Board and Finance (Principal) 96,572 Alberta Treasury Board and Finance (Accrued interest) 4,609 18,025 Government of Alberta Ministry (RCSD Aspen Collaborative Services) 196, , ,773 Other: Alberta Capital Financing Authority 101,181 18,025 TOTAL 2016/ ,513 41,548,402 26,755, ,798 TOTAL 2015/ ,197 27,875,631 26,006, , 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. 12. BUDGET AMOUNTS The budget was prepared by the Regional Division and approved by the Board of Trustees on May 17, It is presented for information purposes only and has not been audited. 13. COMPARATIVE FIGURES The comparative figures have been reclassified where necessary to conform to the 2016/17 presentation. 27

28 SCHEDULE 8 UNAUDITED SCHEDULE OF FEES for the Year Ending August 31, 2017 (in dollars) Budgeted Fee Revenues Unexpended Balance at School Jurisdiction Code: 47 Actual Fee Expenditures Actual Fees 2016/2017 Collected 2016/2017 September 1, 2016* 2016/ , 2017* Transportation Fees 28,367 34, ,200 0 Basic Instruction Fees Basic instruction supplies 187, , ,866 0 Fees to Enhance Basic Instruction Technology user fees 37,500 20, ,135 14,083 Alternative program fees ,689 0 Fees for optional courses 47,500 54, ,055 29,148 Activity fees 137,841 66, ,027 0 Early childhood services 23, Other fees to enhance education 0 59, ,701 0 Other Enhancement fees (describe) 50, Other Enhancement fees (describe) NonCurricular fees Extracurricular fees 106, , ,337 0 Noncurricular travel 0 30, ,775 0 Lunch supervision and noon hour activity fees Noncurricular goods and services 25,000 26, ,662 9,244 Other Fees (describe) Other Fees (describe) TOTAL FEES 643, , ,447 52,475 *Unexpended balances cannot be less than 0 Please disclose amounts paid by parents of students that are recorded as "Other sales and services", "Fundraising", or "Other revenue" (rather than fee revenue): Unexpended Balance at August Actual Actual Cafeteria sales, hot lunch, milk programs 66,407 81,453 Special events, graduation, tickets 71,112 67,821 International and out of province student revenue 0 0 Sales or rentals of other supplies/services (clothing, agendas, yearbooks) 168, ,275 Adult education revenue 0 0 Preschool 0 0 Child care & before and after school care 0 0 Lost item replacement fee Other (Describe) Other (Describe) Other (Describe) TOTAL 306, ,549 28