AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2016

Transcription

1 2115xcv4 School Jurisdiction Code: 2115 AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2016 [School Act, Sections 147(2)(a), 148, 151(1) and 276] Wetaskiwin Regional Division No. 11 Legal Name of School Jurisdiction A Avenue Wetaskiwin AB T9A 3S3 Mailing Address (780) (780) Telephone & Fax Numbers, and Address SCHOOL JURISDICTION MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING The financial statements o Wetaskiwin Regional Division No. 11 presented to Alberta Education have been prepared by school jurisdiction management which has responsibility their preparation, integrity and objectivity. The financial statements, including notes, have been prepared in accorda with Canadian Public Sector Accounting Standards and follow format prescribed by Alberta Educatio In fulfilling its reporting responsibilities, management has maintained internal control systems and procedures desig to provide reasonable assurance that the school jurisdiction's assets are safeguarded, that transactions are execu in accordance with appropriate authorization and that accounting records may be relied upon to properly reflect school jurisdiction's transactions. The effectiveness of the control systems is supported by the selection and train of qualified personnel, an organizational structure that provides an appropriate division of responsibility and a stro 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 aud financial statements with management in detail and approved the financial statements for releas External Auditors The Board appoints external auditors to audit the financial statements and meets with the auditors to review their findin The external auditors were given full access to school jurisdiction record Declaration of Management and Board Chair To the best of our knowledge and belief, these financial statements reflect, in all material respects, the financial posit results of operations and cash flows for the year in accordance with Canadian Public Sector Accounting Standar BOARD CHAIR Mrs. Barbara Johnson Name "Original Signed" Signature SUPERINTENDENT Dr. Terry Pearson Name "Original Signed" Signature SECRETARYTREASURER OR TREASURER Ms. Sherri Senger Name "Original Signed" Signature November 29, 2016 Boardapproved Release Date c.c. ALBERTA EDUCATION, Financial Reporting & Accountability Branch 8th Floor Commerce Place, Street, Edmonton AB T5J 4L5 meiling.irwin@gov.ab.ca AND robert.mah@gov.ab.ca PHONE: MeiLing: (780) ; Robert: (780) FAX: (780)

2 School Jurisdiction Code: 2115 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 FINANCIAL ASSETS (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 18 Schedule 9: UNAUDITED SCHEDULE OF DIFFERENTIAL FUNDING 19 Schedule 10: UNAUDITED SCHEDULE OF CENTRAL ADMINISTRATION EXPENSES 20 2

3 ... Grant Thornton 3 Independent Auditor's Report Grant Thornton LLP 1701 Scotia Place Jasper Avenue NW Edmonton, AB T5J 3R8 T F E Edmonton@ca.gt.com To the Board of Trustees of Wetaskiwin Regional Division No. 11 We have audited the accompanying financial statements of Wetaskiwin Regional Division No. 11, which comprise the statement of financial position as at August 31, 2016, and the statements of operations, changes in net financial assets (net debt), remeasurement gains and losses, and cash flows and schedules of changes in accumulated surplus, capital revenue, program operations, plant operations and maintenance expenses, cash and cash equivalents and portfolio investments, capital assets, and remuneration and monetary incentives 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 controls 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 Audit Tax Advisory Grant Thornton LLP. A Canadian Member of Grant Thornton International ltd

4 ... Grant Thornton 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 Wetaskiwin Regional Division No. 11 as at August 31, 2016, and the results of its operations, changes in net financial assets (net debt), remeasurement gains and losses, and cash flows and schedules of changes in accumulated surplus, capital revenue, program operations, and plant operations and maintenance expenses, cash and cash equivalents and portfolio investments, capital assets, and remuneration and monetary incentives for the year then ended in accordance with Canadian public sector accounting standards. Edmonton, Canada November 29, 2016 Chartered Professional Accountants

5 STATEMENT OF FINANCIAL POSITION As at August 31, 2016 (in dollars) School Jurisdiction Code: Restated FINANCIAL ASSETS Cash and cash equivalents (Schedule 5) 6,281,490 6,493,858 Accounts receivable (net after allowances) (Note 3) 4,330,483 4,566,689 Portfolio investments Other financial assets Total financial assets 10,611,973 11,060,547 LIABILITIES Bank indebtedness (Note 4) Accounts payable and accrued liabilities (Note 5) 3,526,496 1,689,669 Deferred revenue (Note 6) 53,596,638 40,358,661 Employee future benefit liabilities (Note 7) 165, ,371 Liability for contaminated sites Other liabilities Debt (Note 8) Supported: Debentures and other supported debt 307, ,165 Unsupported: Debentures and capital loans Mortgages Capital leases Total liabilities 57,596,765 42,729,866 Net financial assets (debt) (46,984,792) (31,669,319) NONFINANCIAL ASSETS Tangible capital assets (Schedule 6, Note 9) Land 242, ,290 Construction in progress Buildings 88,712,814 Less: Accumulated amortization (37,433,772) 51,279,042 37,038,790 Equipment 1,864,796 Less: Accumulated amortization (1,255,635) 609, ,039 Vehicles 688,558 Less: Accumulated amortization (447,594) 240, ,052 Computer Equipment 4,655,707 Less: Accumulated amortization (3,336,100) 1,319,607 1,477,894 Total tangible capital assets 53,691,064 39,593,065 Prepaid expenses (Note 10) 429, ,713 Other nonfinancial assets (Note 11) 314, ,237 Total nonfinancial assets 54,434,308 40,121,015 Accumulated surplus (Schedule 1; Note 17) 7,449,515 8,451,695 Accumulating surplus / (deficit) is comprised of: Accumulated operating surplus (deficit) 7,449,515 8,451,695 Accumulated remeasurement gains (losses) 7,449,515 8,451,695 Contractual obligations (Note 13) Contingent liabilities The accompanying notes and schedules are part of these financial statements. 4

6 STATEMENT OF OPERATIONS For the Year Ended August 31, 2016 (in dollars) School Jurisdiction Code: 2115 Budget Actual Actual Restated REVENUES Alberta Education 45,953,445 Other Government of Alberta 433,456 Federal Government and First Nations 5,763,178 Other Alberta school authorities 13,500 Out of province authorities Alberta municipalitiesspecial tax levies Property taxes Fees (Schedule 8) 735,665 Other sales and services 447,000 Investment income 75,000 Gifts and donations 75,000 Rental of facilities 15,640 Fundraising 250,000 Gains on disposal of capital assets 45,161,958 44,955, , ,576 4,986,923 4,984,147 23,848 56, , , ,132 1,361,303 55,081 81, ,292 73,698 29,943 24, , , Other revenue (Schedule 8) 213, ,587 EXPENSES Total revenues 53,761,884 52,551,223 53,273,313 Instruction ECS 2,300,000 2,203,390 2,273,744 Instruction Grades ,750,676 39,368,615 40,410,742 Plant operations and maintenance 7,394,057 6,860,004 7,840,794 Transportation 2,574,616 2,501,959 2,586,833 Board & system administration 2,440,315 2,528,025 2,334,555 External services 82,000 91,618 96,899 Total expenses 54,541,664 53,553,611 55,543,567 Operating surplus (deficit) (779,780) (1,002,388) (2,270,254) The accompanying notes and schedules are part of these financial statements. 5

7 School Jurisdiction Code: 2115 STATEMENT OF CASH FLOWS For the Year Ended August 31, 2016 (in dollars) CASH FLOWS FROM: A. OPERATING TRANSACTIONS Operating surplus (deficit) (1,002,388) (2,270,254) Add (Deduct) items not affecting cash: Total amortization expense 2,735,654 2,619,165 Gains on disposal of tangible capital assets (300) Losses on disposal of tangible capital assets Expended deferred capital revenue recognition (1,821,545) (1,810,494) Deferred capital revenue writedown / adjustment Donations in kind Changes in: Accounts receivable 236, ,230 Prepaids (215,294) (6,106) Other financial assets Nonfinancial assets Accounts payable, accrued and other liabilities 1,836,827 (312,789) Deferred revenue (excluding EDCR) 15,059,522 4,588,927 Employee future benefit liabilities 59, Due from endowments Total cash flows from operating transactions 16,888,505 3,722,662 B. CAPITAL TRANSACTIONS Purchases of tangible capital assets Land Buildings (16,117,937) (3,066,788) Equipment (91,373) (193,527) Vehicles (93,470) Computer equipment (530,873) (354,357) Net proceeds from disposal of unsupported capital assets 300 Other (describe) Total cash flows from capital transactions (16,833,653) (3,614,372) C. INVESTING TRANSACTIONS Purchases of portfolio investments Dispositions of portfolio investments Remeasurement (gains) losses reclassified to the statement of operations Change in endowments 208 (100) Other (describe) Total cash flows from investing transactions 208 (100) D. FINANCING TRANSACTIONS Issue of debt Repayment of debt (267,428) (344,747) Other factors affecting debt (describe) Issuance of capital leases Repayment of capital leases Other factors affecting capital leases (describe) Other (describe) Total cash flows from financing transactions (267,428) (344,747) Increase (decrease) in cash and cash equivalents (212,368) (236,557) Cash and cash equivalents, at beginning of year 6,493,858 6,730,415 Cash and cash equivalents, at end of year 6,281,490 6,493,858 The accompanying notes and schedules are part of these financial statements. 6

8 School Jurisdiction Code: 2115 STATEMENT OF CHANGE IN NET FINANCIAL ASSETS (NET DEBT) For the Year Ended August 31, 2016 (in dollars) Budget Operating surplus (deficit) (779,780) (1,002,388) (2,270,254) Effect of changes in tangible capital assets Acquisition of tangible capital assets (400,000) (16,833,653) (3,614,672) Amortization of tangible capital assets 1,887,300 2,735,654 2,619,165 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 1,487,300 (14,097,999) (995,507) Changes in: Prepaid expenses (215,294) (6,106) Other nonfinancial assets Net remeasurement gains and (losses) Endowments 208 (100) Increase (decrease) in net financial assets (net debt) 707,520 (15,315,473) (3,271,967) Net financial assets (net debt) at beginning of year (31,669,320) (31,669,320) (28,397,353) Net financial assets (net debt) at end of year (30,961,800) (46,984,793) (31,669,320) The accompanying notes and schedules are part of these financial statements. 7

9 School Jurisdiction Code: 2115 STATEMENT OF REMEASUREMENT GAINS AND LOSSES For the Year Ended August 31, 2016 (in dollars) Accumulated remeasurement gains (losses) at beginning of year Prior Period Adjustment (Explain) 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

10 SCHEDULE 1 SCHEDULE OF CHANGES IN ACCUMULATED SURPLUS for the Year Ended August 31, 2016 (in dollars) School Jurisdiction Code: 2115 INTERNALLY RESTRICTED ACCUMULATED ACCUMULATED ACCUMULATED INVESTMENT ENDOWMENTS UNRESTRICTED TOTAL TOTAL SURPLUS REMEASUREMENT OPERATING IN TANGIBLE SURPLUS OPERATING CAPITAL GAINS (LOSSES) SURPLUS CAPITAL RESERVES RESERVES ASSETS Balance at August 31, ,451,695 8,451,695 4,349,294 83, ,865,941 1,152,860 Prior period adjustments: Adjusted Balance, August 31, ,451,695 8,451,695 4,349,294 83, ,865,941 1,152,860 Operating surplus (deficit) (1,002,388) (1,002,388) (1,002,388) Board funded tangible capital asset additions Disposal of unsupported tangible capital 666,882 (666,882) 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 (142) (142) (142) Endowment contributions Reinvested endowment income Direct credits to accumulated surplus (Describe) Amortization of tangible capital assets (2,735,654) 2,735,654 Capital revenue recognized 1,821,545 (1,821,545) Debt principal repayments (unsupported) Additional capital debt or capital leases Net transfers to operating reserves Net transfers from operating reserves 534,241 (534,241) Net transfers to capital reserves Net transfers from capital reserves 220,920 (220,920) Assumption/transfer of other operations' surplus Other Changes Balance at August 31, ,449,515 7,449,515 4,102,067 83, ,331, ,940 9

11 SCHEDULE 1 Balance at August 31, 2015 Prior period adjustments: Adjusted Balance, August 31, 2015 Operating surplus (deficit) Board funded tangible capital asset additions Disposal of unsupported tangible capital assets or board funded portion of supported Writedown of unsupported tangible capital assets or board funded portion of supported Net remeasurement gains (losses) for the year Endowment expenses & disbursements Endowment contributions 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, 2016 School Jurisdiction Code: 2115 SCHEDULE OF CHANGES IN ACCUMULATED SURPLUS for the Year Ended August 31, 2016 (in dollars) INTERNALLY RESTRICTED RESERVES BY PROGRAM School & Instruction Related Operations & Maintenance Board & System Administration Transportation External Services Operating Reserves Capital Reserves Operating Reserves Capital Reserves Operating Reserves Capital Reserves Operating Reserves Capital Reserves Operating Reserves Capital Reserves 2,865, ,524 (0) 521, ,838 39,931 2,865, ,524 (0) 521, ,838 39,931 (534,241) (102,524) (113,196) (5,200) 2,331,700 (0) 408, ,838 34,731 10

12 SCHEDULE 2 SCHEDULE OF CAPITAL REVENUE (EXTERNALLY RESTRICTED CAPITAL REVENUE ONLY) for the Year Ended August 31, 2016 (in dollars) 2115 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, ,500,071 35,336,422 Prior period adjustments (92,651) Adjusted balance, August 31, ,500,071 35,243,771 Add: Unexpended capital revenue received from: Alberta Education school building & modular projects (excl. IMR) 14,408,443 Infrastructure Maintenance & Renewal capital related to school facilities 714,943 Other sources: Other sources: Unexpended capital revenue receivable from: Alberta Education school building & modular (excl. IMR) Other sources: Other sources: Interest earned on unexpended capital revenue 8,281 Other unexpended capital revenue: Proceeds on dispoition of supported capital Insurance proceeds (and related interest) Donated tangible capital assets: Alberta Infrastructure managed projects Transferred in (out) tangible capital assets net book value) Expended capital revenue current year (16,166,771) 16,166,771 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 1,821,545 Capital revenue recognized Other Government of Alberta Capital revenue recognized Other revenue Balance at August 31, ,967 49,588,997 (A) (B) (C) (D) Balance of Unexpended Deferred Capital Revenue at August 31, 2016 (A) + (B) + (C) + (D) 464,967 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

13 SCHEDULE 3 School Jurisdiction Code: 2115 SCHEDULE OF PROGRAM OPERATIONS for the Year Ended August 31, 2016 (in dollars) Plant Operations Board & REVENUES Instruction and System External 2015 Restated ECS Grades 1 12 Maintenance Transportation Administration Services TOTAL TOTAL (1) Alberta Education 2,525,893 32,507,601 5,490,359 2,487,658 2,150,447 45,161,958 44,955,024 (2) Other Government of Alberta 131, ,426 9, , ,576 (3) Federal Government and First Nations 33,000 3,988, , ,316 4,986,923 4,984,147 (4) Other Alberta school authorities 23,848 23,848 56,848 (5) Out of province authorities (6) Alberta municipalitiesspecial tax levies (7) Property taxes (8) Fees 11, ,544 33, , ,983 (9) Other sales and services 317,980 80,353 95,181 91, ,132 1,361,303 (10) Investment income 55,081 55,081 81,467 (11) Gifts and donations 122, ,292 73,698 (12) Rental of facilities 29,943 29,943 24,026 (13) Fundraising 266, , ,354 (14) Gains on disposal of tangible capital assets 300 (15) Other revenue 213, , ,587 (16) TOTAL REVENUES 2,702,076 38,336,129 6,348,024 2,545,351 2,528,025 91,618 52,551,223 53,273, EXPENSES (17) Certificated salaries 1,043,959 21,920, ,089 23,548,701 22,943,842 (18) Certificated benefits 130,622 5,195, ,917 5,459,244 5,352,252 (19) Noncertificated salaries and wages 735,950 6,149,478 2,204, , ,838 62,489 10,319,296 11,153,260 (20) Noncertificated benefits 214,062 1,860, ,550 37, ,127 9,554 3,024,614 3,197,754 (21) SUB TOTAL 2,124,593 35,126,269 2,832, ,449 1,985,971 72,043 42,351,855 42,647,108 (22) Services, contracts and supplies 78,797 3,138,304 2,129,975 2,291, ,629 19,575 8,162,302 9,851,376 (23) Amortization of supported tangible capital assets 1,821,545 1,821,545 1,810,494 (24) Amortization of unsupported tangible capital assets 841,163 38,818 34, , ,671 (25) Supported interest on capital debt 37,136 37,136 66,297 (26) Unsupported interest on capital debt (27) Other interest and finance charges 488 3,297 3,785 1,609 (28) Losses on disposal of tangible capital assets (29) Other expense 262, , ,012 (30) TOTAL EXPENSES 2,203,390 39,368,615 6,860,004 2,501,959 2,528,025 91,618 53,553,611 55,543,567 (31) OPERATING SURPLUS (DEFICIT) 498,686 (1,032,486) (511,980) 43,392 (1,002,388) (2,270,254) 12

14 SCHEDULE 4 School Jurisdiction Code: 2115 SCHEDULE OF PLANT OPERATIONS AND MAINTENANCE EXPENSES for the Year Ended August 31, 2016 (in dollars) Expensed IMR, Unsupported TOTAL Utilities Modular Unit Amortization Supported TOTAL Operations and Facility Planning & EXPENSES Custodial Maintenance and Relocations & Operations & Other Capital & Debt Operations and Maintenance Telecomm. Lease Payments Administration Expenses Services Maintenance Uncertificated salaries and wages 1,438, , ,719 2,204,980 2,230,074 Uncertificated benefits 414, ,371 65, , ,014 Subtotal Remuneration 1,853, , ,175 2,832,530 2,834,088 Supplies and services 115, ,772 56, ,631 52, ,839 1,938,926 Electricity 682, , ,907 Natural gas/heating fuel 275, , ,513 Sewer and water 133, , ,475 Telecommunications 10,832 10,832 Insurance 236, , ,843 ASAP maintenance & renewal payments Amortization of tangible capital assets Supported 1,821,545 1,821,545 1,797,574 Unsupported 38,818 38,818 44,171 Total Amortization 38,818 1,821,545 1,860,363 1,841,745 Interest on capital debt Supported 37,136 37,136 66,297 Unsupported Lease payments for facilities Other interest charges Losses on disposal of capital assets TOTAL EXPENSES 1,969,271 1,105,634 1,159, , ,108 38,818 1,858,681 6,860,004 7,840,794 SQUARE METRES School buildings 65, ,700.2 Non school buildings 2, ,129.0 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 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

15 SCHEDULE 5 School Jurisdiction Code: 2115 SCHEDULE OF CASH, CASH EQUIVALENTS, AND PORTFOLIO INVESTMENTS for the Year Ended August 31, 2016 (in dollars) Cash & Cash Equivalents Average Effective (Market) Yield Cost Amortized Cost Amortized Cost Cash 6,281,490 6,281,490 6,493,857 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 0.00% Total cash and cash equivalents 0.00% 6,281,490 6,281,490 6,493,857 Portfolio Investments Average Effective (Market) Yield Cost Fair Value Balance Balance Long term deposits 0.00% Guranteed interest 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% 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

16 SCHEDULE 6 School Jurisdiction Code: 2115 SCHEDULE OF CAPITAL ASSETS for the Year Ended August 31, 2016 (in dollars) Tangible Capital Assets Land Construction In Progress Buildings Equipment Vehicles Computer Hardware & Software Estimated useful life 2550 Years 510 Years 510 Years 35 Years Historical cost Beginning of year 242,290 72,594,877 1,773, ,207 4,124,834 79,389,631 75,812,048 Prior period adjustments Additions 16,117,937 91,373 93, ,873 16,833,653 3,614,673 Transfers in (out) Less disposals including writeoffs (59,119) (59,119) (37,090) 242,290 88,712,814 1,864, ,558 4,655,707 96,164,165 79,389,631 Total Total Accumulated amortization Beginning of year 35,556,087 1,130, ,155 2,646,940 39,796,566 37,214,490 Prior period adjustments Amortization 1,877, ,251 43, ,160 2,735,654 2,619,166 Other additions Transfers in (out) Less disposals including writeoffs (59,119) (59,119) (37,090) 37,433,772 1,255, ,594 3,336,100 42,473,101 39,796,566 Net Book Value at August 31, ,290 51,279, , ,964 1,319,607 53,691,064 Net Book Value at August 31, ,290 37,038, , ,052 1,477,894 39,593,065 Total cost of assets under capital lease Total amortization of assets under capital lease

17 SCHEDULE 7 SCHEDULE OF REMUNERATION AND MONETARY INCENTIVES for the Year Ended August 31, 2016 (in dollars) Negotiated Performance Other Accrued Board Members: FTE Remuneration Benefits Allowances Bonuses ERIP's / Other Paid Unpaid Benefits (1) Expenses Mrs. Barbara Johnson ,322 3, ,811 Mrs. Robbyn Erickson ,125 5, ,960 Mrs. Shauna Bruno ,910 5, ,647 Mrs. Lynn Ware ,464 5, ,873 Mrs. Karen Becker ,226 7, ,934 Mr. George Ollenberger ,991 5, ,249 Mr. Dave Gursky ,726 2, ,075 Mrs. Jennifer Day ,380 5, ,196 Mrs. Deanna Specht , Subtotal ,673 41, ,756 Dr. Terry Pearson ,000 39, ,115 9,336 Supeintendent Mrs. Sherri Senger ,750 45, ,115 9,654 SecretaryTreasurer Certificated teachers ,353,701 5,419,438 18, Noncertificated other ,995,873 2,938, TOTALS ,867,997 8,483,858 18, ,230 74,746 (1) Other Accrued Unpaid Benefits Include: Superintendent: Retention Allowance 56,333 (2015 0) & Accrued Vacation Payable 7,782 ( ,750) SecretaryTreasurer: Accrued Vacation payable 1,115 ( ) 16

18 Wetaskiwin Regional Division No.11 Notes to the Financial Statements August 31, AUTHORITY AND PURPOSE The Wetaskiwin Regional Division No.11 (the Regional Division ) delivers education programs under the authority of the School Act, Revised Statutes of Alberta 2000, Chapter S3 and through its own bylaws. The Regional Division is directed by an elected Board of Trustees. The jurisdiction receives funding for instruction and support under Education Grants Regulation (AR 120/2008). The regulation allows for the setting of conditions and use of grant monies. The Regional Division is limited on certain funding allocations and administration expenses. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These financial statements have been prepared in accordance with the CICA Canadian Public Sector Accounting Standards ( PSAS ) and accounting policies consistent with those prescribed by Alberta Education for Alberta school districts. Budget information represents the original budget submitted to Alberta Education in June 23, 2015 and does not reflect the amended budget, adjusted for identified circumstances relating to operating and program changes, submitted in November The Board of Trustees approved the original budget. 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 on hand and balances with banks net of outstanding cheques. b) Accounts receivable Accounts receivable are shown net of allowance for doubtful accounts. c) Tangible capital assets Certain tangible capital assets, including new school construction and major renovations (except administrative buildings and replacement of equipment and vehicles) are funded by Alberta Education when approved. The following criteria apply: Tangible capital assets acquired or constructed are recorded at cost including amounts that are directly related to the acquisition, design, construction, development, 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. Constructioninprogress is recorded as a transfer to the applicable asset class when available for use. Buildings include site and leasehold improvements. Wetaskiwin Regional Division No.11 Audited Financial Statements for the Year Ended August 31, 2016

19 Wetaskiwin Regional Division No.11 Notes to the Financial Statements August 31, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont d) Tangible capital assets (cont d) 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 ( EDCR ). Buildings that are demolished or destroyed are writtenoff. Tangible capital assets with costs in excess of 5,000 are capitalized. Provincially funded Infrastructure Maintenance Renewal ( IMR ) projects that improve or sustain the operating functionality of building components or land improvements and do not extend the useful life of the underlying are expensed when incurred. Tangible capital assets are amortized over their estimated useful lives on a straightline basis, at the following rates: Buildings 2% to 5% Vehicles & Buses 10% to 20% Computer Hardware & Software 20% to 25% Other Equipment & Furnishings 10% to 20% Constructioninprogress is not amortized. When constructioninprogress is transferred to the applicable asset class, amortization on the asset commences in the year acquired. d.) 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 3200 Liabilities. 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 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 3200Liabilities when expended. Wetaskiwin Regional Division No.11 Audited Financial Statements for the Year Ended August 31, 2016

20 Wetaskiwin Regional Division No.11 Notes to the Financial Statements August 31, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont d) Expended deferred capital revenue Expended Deferred Capital Revenue represent externally restricted supported capital funds that have been expended but have yet to be amortized over the useful life of the related tangible capital asset. Amortization over the useful life of the related tangible capital asset is due to certain stipulations related to the contributions that require that the school jurisdiction to use the asset in a prescribed manner over the life of the associated asset. e.) Asset retirement obligations Asset retirement obligations represent legal obligations associated with the retirement of a tangible longlived asset that result from its acquisition, construction, development or normal operation. The Regional Division has determined that there is no asset retirement obligation liability as the Regional Division has no identifiable asset retirement obligations as at August 31, 2016 and f.) Liability for contaminated sites Contaminated sites are a result of contamination being introduced into the air, soil, water, or sediment of a chemical, organic or radioactive material, or live organism that exceeds the environmental standard and standard requires that a liability be recorded for the estimated costs of remediation. The Regional Division has determined that there is no liability for contaminated sites as at August 31, 2016 and g.) 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. h.) 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. Wetaskiwin Regional Division No.11 Audited Financial Statements for the Year Ended August 31, 2016

21 Wetaskiwin Regional Division No.11 Notes to the Financial Statements August 31, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont d) 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 3200 Liabilities. 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. i.) 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. j.) 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 Regional Division does not make pension contributions for certificated staff. The Government portion of the current service contribution to the Alberta Teachers Retirement Fund on behalf of the jurisdiction is included in both revenues (Alberta Education) and expenses (certificated benefits) in the financial statements. For the school year ended August 31, 2016, the amount contributed to the Teacher s Retirement Fund by the Province was 2,771,597 (2015 2,782,435) The Regional Division participates in a multiemployer pension plan, the Local Authorities Pension Plan, a multiemployer, defined contribution pension plan, and does not report on any unfunded liabilities. The expense for this pension plan is equivalent to the annual contributions of 972,501 for the year ended August 31, 2016 (2015 1,044,645). At December 31, 2015, the Local Authorities Pension Plan reported an actuarial deficiency of 923,416,000 (2014 deficiency of 2,454,636,000). Wetaskiwin Regional Division No.11 Audited Financial Statements for the Year Ended August 31, 2016

22 Wetaskiwin Regional Division No.11 Notes to the Financial Statements August 31, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont d) k.) 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. Grades 112 Instruction: The provision of instructional services for grades 112 that fall under the basic public education mandate. Plant Operations and Maintenance: The operation and maintenance of all school buildings and maintenance shop facilities. Transportation: The provision of regular and special education bus services (to and from school), whether contracted or board operated, including transportation facilities. Board & System Administration: The provision of board governance and systembased / central office administration. External Services: All projects, activities, and services offered outside the public education mandate for ECS children and students in grades 112. Services offered beyond the mandate for public education are to be selfsupporting, and Alberta Education funding may not be utilized to support these programs. 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. l.) Scholarship endowment funds Contributions and income pertaining to scholarship endowment funds are recognized on the Statement of Operations and must be held in perpetuity in accordance with the agreement with the donor. Provisions of the agreement require that nil% of the income is reinvested each year. The residual may be disbursed for the purposes of the scholarship. Undisbursed funds earned on endowment principal are recognized as deferred revenue or as revenue in the year to the extent that stipulations have been met. Unrealized gains and losses associated with the endowment are recorded in the Statement of Remeasurement Gains and Losses. m.) Trusts under administration The Regional Division has cash that has been transferred or assigned to it to be administered or directed by a trust agreement or statute. 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 are disclosed in Note 14. Wetaskiwin Regional Division No.11 Audited Financial Statements for the Year Ended August 31, 2016

23 Wetaskiwin Regional Division No.11 Notes to the Financial Statements August 31, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont d) n.) Other nonfinancial assets Other nonfinancial assets include inventories which are recorded at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling price less estimated selling costs. Cost is determined using the average cost method. o.) Funds collected by schools Funds generated from school activities are included with assets, liabilities, revenue and expense of the Regional Division as accountability and control of these funds rests with the Regional Division. p.) 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 liabilities portray these rights and obligations in the financial statements. The Regional Division recognizes a financial instrument when it becomes a party to a financial instrument contract. Financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities and debt. Unless otherwise noted, it is managements opinion that the Regional Division is not exposed to significant credit and liquidity risks, or market risk, which includes currency, interest and other price risks. Initial measurement The Regional Division s financial instruments are measured at fair value when issued or acquired. For financial instruments subsequently measured at cost or amortized cost, fair value is adjusted by the amount of related financing fees and transaction costs. Subsequent measurement At each reporting date, the Regional Division measures its financial assets and liabilities at cost or amortized cost (less impairment in the case of financial assets). The financial instruments measured at amortized cost are cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities and debt. The carrying value of financial instruments approximates their fair value due to the short term nature. For financial assets measured at cost or amortized cost, The Regional Division regularly assesses whether there are any indicators of impairment. If there is an indication of impairment, and the Regional Division determines that there is a significant adverse change in the expected timing or amount of future cash flows from the financial asset, it recognizes an impairment loss in the Statement of operations. Any reversals of previously recognized impairment losses are recognized in operations in the year the reversal occurs. Wetaskiwin Regional Division No.11 Audited Financial Statements for the Year Ended August 31, 2016

24 Wetaskiwin Regional Division No.11 Notes to the Financial Statements August 31, 2016 q.) 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 include the collectability of amounts receivable, the useful lives of tangible assets and the corresponding rate of amortization, the amount of accrued liabilities and the potential impairment of assets. 3. ACCOUNTS RECEIVABLE Gross Amount 2016 Allowance for Doubtful Accounts Net Realizable Value 2015 Net Realizable Value Alberta Education Grants 17,346 17,346 4,574 Alberta Education Capital 3,530,955 3,530,955 3,574,537 Other Alberta school jurisdictions 13,884 13,884 Treasury Board and Finance Supported debenture principal 307, , ,165 Treasury Board and Finance Accrued interest on supported debentures 16,598 16,598 32,611 Alberta Health Services 2,693 2,693 30,012 Government of Alberta Ministry 4,350 4,350 (S Federal f government ) 288, , ,317 Other 181,161 (32,356) 148, ,473 Total 4,362,839 (32,356) 4,330,483 4,566, BANK INDEBTEDNESS The Regional Division has negotiated a line of credit in the amount of 1,000,000 bearing interest at the bank prime rate less 0.50% (2015 bank prime rate less 0.50%). This line of credit is secured by a borrowing bylaw and a security agreement, covering all revenue of the Regional Division. There was a nil balance outstanding on the line of credit at August 31, 2016 (2015 nil). The Regional Division has a purchasing card facility in the amount of 120,000 ( ,000) of which 31,853 was outstanding at August 31, 2016 ( ,248) and is included in the accounts payable and accrued liabilities. Wetaskiwin Regional Division No.11 Audited Financial Statements for the Year Ended August 31, 2016

25 Wetaskiwin Regional Division No.11 Notes to the Financial Statements August 31, ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Restated Alberta Capital Finance Authority (Interest on longterm debt Supported) 16,598 32,611 Other salaries & benefit costs 164, ,759 Other trade payables and accrued liabilities 3,345,540 1,300,299 Total 3,526,496 1,689, DEFERRED REVENUE ADD: DEDUCT: SOURCE AND GRANT OR FUND TYPE DEFERRED 2015/ /2016 DEFERRED REVENUE Restricted Restricted Funds REVENUE as at Funds Received/ Expended as at Aug. 31, 2015 Receivable (Paid / Payable) Aug. 31, 2016 Unexpended deferred operating revenue Alberta Education: Infrastructure Maintenance Renew al 3,429, ,612 (837,977) 3,360,372 FNMI BCCE Grant 99,467 (21,188) 78,279 Other Government of Alberta: Child and Family Services 12, ,556 (122,071) 16,129 University of Albert School & Communiyt Health Education Partnership Grant 28,500 (5,647) 22,853 Family & Community Support Serviceds Mental Health Play in the Park Grant 1,502 1,502 Other Deferred Revenue: School Generated Funds 51,560 40,430 (51,560) 40,430 Braillest 65,000 (65,000) Fees 4,189 6,223 (4,189) 6,223 Insurance proceeds 96, ,925 (234,095) 323 Endow ment interest 1, (1,400) 597 SuperNet Lease 936 1,670 2,606 Bus Passes 17,860 13,360 (17,860) 13,360 Total unexpended deferred operating revenue 3,614,819 1,288,842 (1,360,987) 3,542,674 Unexpended deferred capital revenue (Schedule 2) 1,500,071 15,131,667 (16,166,771) 464,967 Expended deferred capital revenue (Schedule 2) 35,243,771 16,166,771 (1,821,545) 49,588,997 Total 40,358,661 32,587,280 (19,349,303) 53,596, EMPLOYEE FUTURE BENEFIT LIABILITIES Employee future benefit liabilities consist of the following: Restated Retirement allow ances 165, ,371 Total 165, ,371 Wetaskiwin Regional Division No.11 Audited Financial Statements for the Year Ended August 31, 2016

26 Wetaskiwin Regional Division No.11 Notes to the Financial Statements August 31, DEBT Supported debentures outstanding at August 31, 2016 have interest rates betw een 7.625% to % and mature at various dates betw een 2017 and , ,165 Total 307, ,165 Debenture Debt Supported The debenture debt is fully supported by Alberta Capital Finance Authority. Debenture payments due over the next four years are: Principal Interest Total ,942 26, , ,395 11, , ,400 3,538 49,938 Total 307,737 41, ,392 Accrued interest of 16,598 ( ,611) is included in accounts receivable and accounts payable and accrued liabilities. Total interest paid for the year is 37,136 ( ,498). 9. TANGIBLE CAPITAL ASSETS Included in total tangible capital asset additions for the year ending August 31, 2016 is 16,166, (2015 3,641,099) of government supported tangible capital asset additions. Included in Buildings is 14,993,839 (2015 2,964,252) of costs not being amortized as the related tangible asset is not available for use. 10. PREPAID EXPENSES: Prepaid expenses consist of the following: Prepaid insurance 116,729 Softw are Support Agreements 202, ,839 Photocopier lease 80,868 Memberships 18,758 32,911 Other 9,726 14,963 Total 429, ,713 Wetaskiwin Regional Division No.11 Audited Financial Statements for the Year Ended August 31, 2016