AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2016

Transcription

1 3065NNH1 School Jurisdiction Code: 3065 AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2016 [School Act, Sections 147(2)(a), 148, 151(1) and 276] Canadian Rockies Regional Division No. 12 Legal Name of School Jurisdiction 618 7th Avenue Canmore AB T1W 2H5 Mailing Address (403) (403) Telephone & Fax Numbers, and Address SCHOOL JURISDICTION MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING The financial statements of Canadian Rockies Regional Division No. 12 presented to Alberta Education have been prepared by school jurisdiction management which has responsibility for their preparation, integrity and objectivity. The financial statements, including notes, have been prepared in accordance with Canadian Public Sector Accounting Standards and follow format prescribed by Alberta Education. In fulfilling its reporting responsibilities, management has maintained internal control systems and procedures designed to provide reasonable assurance that the school jurisdiction's assets are safeguarded, that transactions are executed in accordance with appropriate authorization and that accounting records may be relied upon to properly reflect the school jurisdiction's transactions. The effectiveness of the control systems is supported by the selection and training of qualified personnel, an organizational structure that provides an appropriate division of responsibility and a strong system of budgetary control. Board of Trustees Responsibility The ultimate responsibility for the financial statements lies with the Board of Trustees. The Board reviewed the audited financial statements with management in detail and approved the financial statements for release. External Auditors The Board appoints external auditors to audit the financial statements and meets with the auditors to review their findings. The external auditors were given full access to school jurisdiction records. Declaration of Management and Board Chair To the best of our knowledge and belief, these financial statements reflect, in all material respects, the financial position, results of operations and cash flows for the year in accordance with Canadian Public Sector Accounting Standards. BOARD CHAIR Mrs. Carol Picard Name "Original Signed" Signature SUPERINTENDENT Mr. Chris MacPhee Name "Original Signed" Signature SECRETARYTREASURER OR TREASURER Mr. David MacKenzie Name "Original Signed" Signature December 13, 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: 3065 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 26 Schedule 9: UNAUDITED SCHEDULE OF DIFFERENTIAL FUNDING 27 Schedule 10: UNAUDITED SCHEDULE OF CENTRAL ADMINISTRATION EXPENSES 28 2

3 INDEPENDENT AUDITOR'S REPORT To The Board of Trustees Canadian Rockies Regional Division No. 12 I have audited the accompanying financial statements of Canadian Rockies Regional Division No. 12, which comprise the statement of financial position as at August 31, 2016 and the statements of operations, cash flows and change in net financial assets (net debt) for the year ended August 31, 2016, and a summary of the 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. Auditor's Responsibility My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I comply with ethical requirements and plan and perform an 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 judgement, 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 principles used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Opinion In my opinion, the financial statements present fairly, in all material respects, the financial position of Canadian Rockies Regional Division No. 12 as at August 31, 2016 and the results of its operations, cash flows and changes in net financial assets (net debt) for the year ended August 31, 2016 in accordance with Canadian public sector accounting standards. Banff, Alberta December 13, 2016 Manktelow & Company Chartered Accountant P.O. Box 2040, Bear St., Banff, Alberta, Canada, T1 L 1 BB tel: fax:

4 STATEMENT OF FINANCIAL POSITION As at August 31, 2016 (in dollars) School Jurisdiction Code: Restated FINANCIAL ASSETS Cash and cash equivalents (Schedule 5) 5,962,445 6,736,981 Accounts receivable (net after allowances) (Note 3) 3,702,587 3,209,793 Portfolio investments (Schedule 5) 87,000 87,000 Other financial assets Total financial assets 9,752,032 10,033,774 LIABILITIES Bank indebtedness (Note 4) Accounts payable and accrued liabilities (Note 5) 2,465,770 1,281,730 Deferred revenue (Note 6) 37,183,487 36,758,023 Employee future benefit liabilities Liability for contaminated sites Other liabilities Debt (Note 7) Supported: Debentures and other supported debt 1,398,610 1,890,200 Unsupported: Debentures and capital loans 58,299 81,772 Mortgages Capital leases Total liabilities 41,106,166 40,011,726 Net financial assets (debt) (31,354,135) (29,977,952) NONFINANCIAL ASSETS Tangible capital assets (Schedule 6) Land 960, ,825 Construction in progress 3,754,900 Buildings 54,032,968 Less: Accumulated amortization (22,817,671) 31,215,296 32,893,556 Equipment 4,661,189 Less: Accumulated amortization (4,409,178) 252, ,964 Vehicles 2,098,995 Less: Accumulated amortization (1,286,793) 812, ,710 Computer Equipment 2,520,509 Less: Accumulated amortization (2,489,193) 31,316 47,751 Total tangible capital assets 37,026,550 34,845,806 Prepaid expenses 9,235 8,558 Other nonfinancial assets Total nonfinancial assets 37,035,784 34,854,364 Accumulated surplus (Schedule 1) 5,681,643 4,876,410 Accumulating surplus / (deficit) is comprised of: Accumulated operating surplus (deficit) 5,681,643 4,876,410 Accumulated remeasurement gains (losses) 5,681,643 4,876,410 Contractual obligations (Note 9) Contingent liabilities (Note 10) The accompanying notes and schedules are part of these financial statements. 4

5 STATEMENT OF OPERATIONS For the Year Ended August 31, 2016 (in dollars) School Jurisdiction Code: 3065 Budget Actual Actual REVENUES Alberta Education 22,145,406 Other Government of Alberta 612,040 Federal Government and First Nations 3,301,500 Other Alberta school authorities Out of province authorities Alberta municipalitiesspecial tax levies Property taxes Fees (Schedule 8) 517,901 Other sales and services 686,848 Investment income Gifts and donations 145,503 Rental of facilities 145,713 Fundraising 386,954 Gains on disposal of capital assets 22,780,673 22,397, , ,402 3,385,228 3,100,353 18,962 1,642,091 1,483, , ,295 31,124 3, , , , , , ,371 7,742 11,887 Other revenue EXPENSES Total revenues 27,941,865 30,145,474 29,360,365 Instruction ECS 915,637 1,124,190 1,062,920 Instruction Grades ,764,589 20,368,356 19,742,801 Plant operations and maintenance 3,771,516 4,034,331 3,799,391 Transportation 1,149,233 1,129,572 1,108,858 Board & system administration 1,350,841 1,468,319 1,293,915 External services 989,611 1,215,469 1,096,292 Total expenses 27,941,427 29,340,237 28,104,176 Operating surplus (deficit) ,237 1,256,189 The accompanying notes and schedules are part of these financial statements. 5

6 School Jurisdiction Code: 3065 STATEMENT OF CASH FLOWS For the Year Ended August 31, 2016 (in dollars) CASH FLOWS FROM: A. OPERATING TRANSACTIONS Operating surplus (deficit) 805,237 1,256,189 Add (Deduct) items not affecting cash: Total amortization expense 1,561,971 1,559,535 Gains on disposal of tangible capital assets (7,742) (11,887) Losses on disposal of tangible capital assets Expended deferred capital revenue recognition (1,291,007) (1,296,526) Deferred capital revenue writedown / adjustment Donations in kind Changes in: Accounts receivable (492,794) 2,054,468 Prepaids (676) 12,401 Other financial assets Nonfinancial assets Accounts payable, accrued and other liabilities 1,184, ,626 Deferred revenue (excluding EDCR) 1,716, ,909 Employee future benefit liabilities (48,160) Other (describe) Total cash flows from operating transactions 3,475,500 5,094,555 B. CAPITAL TRANSACTIONS Purchases of tangible capital assets Land Buildings (3,383,917) (370,983) Equipment (7,499) Vehicles (321,792) (79,572) Computer equipment (37,006) (7,526) Net proceeds from disposal of unsupported capital assets 7,742 11,887 Other (describe) Total cash flows from capital transactions (3,734,973) (453,693) C. INVESTING TRANSACTIONS Purchases of portfolio investments Dispositions of portfolio investments Remeasurement (gains) losses reclassified to the statement of operations Change in endowments Other (describe) Total cash flows from investing transactions D. FINANCING TRANSACTIONS Issue of debt Repayment of debt (515,063) (592,394) 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 (515,063) (592,394) Increase (decrease) in cash and cash equivalents (774,536) 4,048,468 Cash and cash equivalents, at beginning of year 6,736,981 2,688,512 Cash and cash equivalents, at end of year 5,962,445 6,736,981 The accompanying notes and schedules are part of these financial statements. 6

7 School Jurisdiction Code: 3065 STATEMENT OF CHANGE IN NET FINANCIAL ASSETS (NET DEBT) For the Year Ended August 31, 2016 (in dollars) Operating surplus (deficit) 805,237 1,256,189 Effect of changes in tangible capital assets Acquisition of tangible capital assets (3,742,715) (465,580) Amortization of tangible capital assets 1,561,971 1,559,535 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 (2,180,743) 1,093,955 Changes in: Prepaid expenses (676) 12,401 Other nonfinancial assets Net remeasurement gains and (losses) Endowments Increase (decrease) in net financial assets (net debt) (1,376,182) 2,362,545 Net financial assets (net debt) at beginning of year (29,977,952) (32,340,497) Net financial assets (net debt) at end of year (31,354,135) (29,977,952) The accompanying notes and schedules are part of these financial statements. 7

8 School Jurisdiction Code: 3065 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

9 SCHEDULE 1 SCHEDULE OF CHANGES IN ACCUMULATED SURPLUS for the Year Ended August 31, 2016 (in dollars) School Jurisdiction Code: 3065 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, ,876,410 4,876,410 2,274, ,485 1,731, ,181 Prior period adjustments: Adjusted Balance, August 31, ,876,410 4,876,410 2,274, ,485 1,731, ,181 Operating surplus (deficit) 805, , ,237 Board funded tangible capital asset additions Disposal of unsupported tangible capital 730,329 (730,329) assets or board funded portion of supported (7,742) 7,742 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 (1,561,971) 1,561,971 Capital revenue recognized 1,291,007 (1,291,007) Debt principal repayments (unsupported) 23,473 (23,473) Additional capital debt or capital leases Net transfers to operating reserves Net transfers from operating reserves 1,075,000 (1,075,000) Net transfers to capital reserves (1,445,965) 1,445,965 Net transfers from capital reserves Assumption/transfer of other operations' surplus Other Changes (4) (4) (4) Balance at August 31, ,681,643 5,681,643 2,757, , ,000 1,384,559 9

10 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: 3065 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 1,455, ,158 65, ,286 95, , , ,850 1,455, ,158 65, ,286 95, , , ,850 (37,006) (393,716) (299,607) 7,742 (1,075,000) 50,763 1,241,167 17, , , ,915 65, ,738 95, , ,000 92,017 10

11 SCHEDULE 2 SCHEDULE OF CAPITAL REVENUE (EXTERNALLY RESTRICTED CAPITAL REVENUE ONLY) for the Year Ended August 31, 2016 (in dollars) 3065 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, ,294,372 32,489,283 Prior period adjustments Adjusted balance, August 31, ,294,372 32,489,283 Add: Unexpended capital revenue received from: Alberta Education school building & modular projects (excl. IMR) 829,153 Infrastructure Maintenance & Renewal capital related to school facilities Other sources: Other sources: Unexpended capital revenue receivable from: Alberta Education school building & modular (excl. IMR) 1,063,961 Other sources: Other sources: Interest earned on unexpended capital revenue 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 (3,012,386) 3,012,386 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 1,291,007 Capital revenue recognized Other Government of Alberta Capital revenue recognized Other revenue Balance at August 31, ,100 34,210,663 (A) (B) (C) (D) Balance of Unexpended Deferred Capital Revenue at August 31, 2016 (A) + (B) + (C) + (D) 175,100 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: 3065 SCHEDULE OF PROGRAM OPERATIONS for the Year Ended August 31, 2016 (in dollars) Plant Operations Board & REVENUES Instruction and System External ECS Grades 1 12 Maintenance Transportation Administration Services TOTAL TOTAL (1) Alberta Education 767,408 16,313,677 3,353,359 1,055,403 1,290,826 22,780,673 22,397,717 (2) Other Government of Alberta 228, , , ,402 (3) Federal Government and First Nations 117,673 2,800, , ,491 3,385,228 3,100,353 (4) Other Alberta school authorities 18,962 (5) Out of province authorities (6) Alberta municipalitiesspecial tax levies (7) Property taxes (8) Fees 1,535, ,489 1,642,091 1,483,295 (9) Other sales and services 119, , , ,295 (10) Investment income 6,274 24,850 31,124 3,531 (11) Gifts and donations 323, , , ,857 (12) Rental of facilities 150, , ,696 (13) Fundraising 287, , ,371 (14) Gains on disposal of tangible capital assets 7,742 7,742 11,887 (15) Other revenue (16) TOTAL REVENUES 885,081 20,979,584 4,036,657 1,182,610 1,478,167 1,583,375 30,145,474 29,360,365 EXPENSES (17) Certificated salaries 809,339 12,841, ,019 12,378 13,997,861 13,379,852 (18) Certificated benefits 95,146 2,986,929 25, ,108,263 3,084,798 (19) Noncertificated salaries and wages 157,089 1,723, , , , ,997 4,397,658 3,962,034 (20) Noncertificated benefits 40, , , , ,128 87,691 1,026, ,770 (21) SUB TOTAL 1,102,466 18,040,084 1,077, ,775 1,048, ,884 22,530,256 21,333,454 (22) Services, contracts and supplies 21,724 2,277,510 1,377, , , ,584 4,994,942 4,891,832 (23) Amortization of supported tangible capital assets 1,291,007 1,291,007 1,296,526 (24) Amortization of unsupported tangible capital assets 50,763 66, ,033 17, , ,009 (25) Supported interest on capital debt 221, , ,901 (26) Unsupported interest on capital debt (27) Other interest and finance charges 31,286 31,286 27,454 (28) Losses on disposal of tangible capital assets (29) Other expense (30) TOTAL EXPENSES 1,124,190 20,368,356 4,034,331 1,129,572 1,468,319 1,215,469 29,340,237 28,104,176 (31) OPERATING SURPLUS (DEFICIT) (239,109) 611,228 2,326 53,038 9, , ,237 1,256,189 12

13 SCHEDULE 4 School Jurisdiction Code: 3065 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 657,849 78, , , ,953 Uncertificated benefits 124,022 19,246 38, , ,441 Subtotal Remuneration 781,872 98, ,010 1,077, ,394 Supplies and services 52, , ,205 6, , ,720 Electricity 323, , ,133 Natural gas/heating fuel 129, , ,263 Sewer and water 84,097 84,097 56,633 Telecommunications 6,327 6,327 7,076 Insurance 4,753 4,753 20,459 ASAP maintenance & renewal payments Amortization of tangible capital assets Supported 1,291,007 1,291,007 1,296,526 Unsupported 66,167 66,167 55,286 Total Amortization 66,167 1,291,007 1,357,174 1,351,812 Interest on capital debt Supported 221, , ,901 Unsupported Lease payments for facilities Other interest charges Losses on disposal of capital assets TOTAL EXPENSES 834, , , , ,197 66,167 1,512,789 4,034,331 3,799,391 SQUARE METRES School buildings 31, ,625.7 Non school buildings 1, ,008.2 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: 3065 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 3,441,445 3,441,445 6,736,981 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 1.35% 2,521,000 2,521,000 Total cash and cash equivalents 0.57% 5,962,445 5,962,445 6,736,981 See Note 3 for additional detail. Out of Balance 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 3.50% 87,000 87,000 87,000 87,000 Total fixed income securities 3.50% 87,000 87,000 87,000 87,000 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 3.50% 87,000 87,000 87,000 87,000 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 100.0% 100.0% 100.0% 100.0% 14

15 SCHEDULE 6 School Jurisdiction Code: 3065 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 960,825 54,403,951 4,661,189 1,910,064 2,483,504 64,419,532 Prior period adjustments 370,983 (370,983) Additions 3,383, ,792 37,006 3,742,715 Transfers in (out) Less disposals including writeoffs (132,861) (132,861) 960,825 3,754,900 54,032,968 4,661,189 2,098,995 2,520,509 68,029,385 Total Total Accumulated amortization Beginning of year 21,510,395 4,363,224 1,264,354 2,435,753 29,573,726 Prior period adjustments Amortization 1,307,277 45, ,300 53,441 1,561,971 Other additions Transfers in (out) Less disposals including writeoffs (132,861) (132,861) 22,817,671 4,409,178 1,286,793 2,489,193 31,002,836 Net Book Value at August 31, ,825 3,754,900 31,215, , ,202 31,316 37,026,550 Net Book Value at August 31, , ,983 32,522, , ,710 47,751 34,845,806 Total cost of assets under capital lease Total amortization of assets under capital lease

16 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 Expenses Chair: Carol Picard , ,757 Other members Leanne McKeown , Arlene Rheaume , ,700 Jen Smith , ,355 Luke Sunderland , Subtotal ,375 2, ,274 Christopher MacPhee, Superintendent ,933 10,559 6, , Dave MacKenzie, Secretary/Treasurer ,719 30, , Certificated teachers ,789,928 3,091, Noncertificated other ,187, , TOTALS ,395,519 4,128,737 6, ,346 16

17 1. AUTHORITY AND PURPOSE PS 1000, PS 1100 Canadian Rockies Regional Division No. 12 Notes to the Financial Statements For the year ended August 31, 2016 The School Jurisdiction delivers education programs under the authority of the School Act, Revised Statutes of Alberta 2000, Chapter S3. 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 School Jurisdiction 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). 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 PS 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) Portfolio Investments PS 3041, PS 3450 The School Division has investments in GIC's, term deposits, bonds, equity instruments and mutual funds that have no maturity dates or a maturity of greater than three months. GI C's, term deposits and investments not quoted in an active market are reported at cost or amortized cost. Portfolio investments in equity instruments that are quoted in an active market are recorded at fair value and the associated transaction costs are expensed upon initial recognition. The change in the fair value is recognized in the Statement of Remeasurement Gains and Losses as a remeasurement gain or loss until the portfolio investments are derecognized. Upon derecognition, the accumulated remeasurement gains or losses associated with the derecognized portfolio investments are reversed and reclassified to the Statement of Operations. Impairment is defined as a loss in value of a portfolio investment that is other than a temporary decline and is included in the Statement of Operations. In the case of an item in the fair value category, a reversal of any net remeasurement gains recognized in previous reporting periods up to the amount of the writedown is reported in the Statement of Remeasurement Gains and Losses. A subsequent increase in value would be recognized on the Statement of Remeasurement Gains and Losses and realized on the Statement of Operations only when sold. Detailed information regarding portfolio investments is disclosed in the Schedule of Cash, Cash Equivalents, and Portfolio Investments. d) Tangible capital assets PS 3150 The following criteria apply: Tangible capital assets acquired or constructed are recorded at cost, including amounts 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. 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 a transfer to the applicable asset class at substantial completion. Buildings include, site and leasehold improvements as well as assets under capital lease. 17

18 Canadian Rockies Regional Division No. 12 Notes to the Financial Statements For the year ended August 31, 2016 Sites and buildings are written down to residual value when conditions indicate they no longer contribute to the ability of the School 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. Leases that, from the point of view of the lessee, transfer substantially all the benefits and risks incident to ownership of the property to the Board are considered capital leases. These are accounted for as an asset and an obligation. Tangible capital assets are amortized over their estimated useful lives on a straightline basis, at the following rates: Buildings Vehicles & Buses Computer Hardware & Software Other Equipment & Furnishings 2% to 4% 10% to 20% 20% to 25% 10% to 20% e) Deferred Revenue PS 3100, ,.17,.19,.25 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 School 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 jurisdiction, but the related expenditure has not been made at yearend. These contributions must also have stipulations that meet the definition of a liability per PS 3200 when expended. Expended Deferred Capital Revenue represent externally restricted supported capital funds that have been expended but 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 that the school jurisdiction to use the asset in a prescribed manner over the life of the associated asset. f) Employee Future Benefits PS , , PS Vacation pay obligations are no longer reported under employee future benefits. Vacation pay obligations are expensed. g) Operating and Capital Reserves PSG4 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 PS ,.16,.17,.19, 3510 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. 18

19 Canadian Rockies Regional Division No. 12 Notes to the Financial Statements For the year ended August 31, 2016 Eligibility criteria are criteria that the School Division has to meet in order to receive certain contributions. Stipulations describe what the School 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 that the stipulations are met, except to the extent that the contributions give rise to an obligation that meets the definition of a liability in accordance with PS Such liabilities are recorded as deferred revenue. i) Expenses PS 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 PS 3250 Pension costs included in these statements comprise the cost of employer contributions for current service of employees during the year. 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 Teacher's Pension Plan Act, the School 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 and expenses. For the school year ended August 31, 2016, the amount contributed by the Government was 1,625, 166 (2015 1,654,958). The school board 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 354, 142 for the year ended August 31, 2016 ( ,064). At December 31, 2015, the Local Authorities Pension Plan reported a deficiency of 923,416,000 (2014, a deficiency of 2,454,636,000 ). k) Program Reporting PS ,.07,.26 The Division's operations have been segmented as follows: ECS Instruction: The provision of Early Childhood Services education instructional services that fall under the basic public education mandate. Grade 112 Instruction: The provision of instructional services for grades 1 12 that fall under the basic public education mandate. Plant Operations and Maintenance: The operation and maintenance of all school buildings and maintenance shop facilities. Transportation: The provision of regular and special education bus services (to and from school), whether contracted or board operated, including transportation facility expenses. Board & System Administration: The provision of board governance and systembased I central office administration. 19

20 Canadian Rockies Regional Division No. 12 Notes to the Financial Statements For the year ended August 31, 2016 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 must 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. I) Scholarship Endowment Funds HB ,.49 Contributions and income pertaining to scholarship endowment funds are recognized on the Statement of Operations and are generally held in perpetuity in accordance with the agreement with the donor. Provisions of the agreement require that 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 PS ,.46 The School Division has property that has been transferred or assigned to it to be administered or directed by a trust agreement or statute. The Division holds title to the property for the benefit of the beneficiary. Trusts under administration have been excluded from the financial reporting of the Division. Trust balances can be found in Note 15. n) Financial Instruments PS 3450 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 School 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, portfolio investments, bank indebtedness, accounts payable and accrued liabilities, debt and other liabilities. Unless otherwise noted, it is management's opinion that the School Division is not exposed to significant credit and liquidity risks, or market risk, which includes currency, interest rate and other price risks. Portfolio investments in equity instruments quoted in an active market and derivatives are recorded at fair value. All other financial assets and liabilities are recorded at cost or amortized cost and the associated transaction costs are added to the carrying value of items in the cost or amortized cost upon initial recognition. The gain or loss arising from derecognition of a financial instrument is recognized in the Statement of Operations. Impairment losses such as writedowns or writeoffs are reported in the Statement of Operations. o) Measurement Uncertainty PS 2130 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. 20

21 3. ACCOUNTS RECEIVABLE 2016 Allowance Gross for Doubtful Amount Accounts Alberta Education Grants 1, 143,486 Treasury Board and Finance Supported debenture principal 1,398,610 Treasury Board and Finance Accrued interest on supported debentures 45,582 Alberta Health SeNices 60,654 Alberta Infrastructure 166,642 Federal go1.emment 86,223 First Nations 363,905 Other 560,751 (123,266) Total g; ~A?" A"~ ~ (: ) Net Realizable Value 1, 143,486 1,398,610 45,582 60, ,642 86, , ,485 g; ~ 70? "Ai 2015 Net Realizable Value 258,949 1,890,200 Canadian Rockies Regional Division No. 12 Notes to the Financial Statements For the year ended August 31, ,290 94, ,642 95, , ,995 g; ~?no 7!=!~ 4. BANKINDEBTEDNESS The jurisdiction has negotiated a line of credit in the amount of 2,400,000 that bears interest at the bank prime rate. This line of credit is secured by a borrowing bylaw and a security agreement, covering all revenue of the jurisdiction. There was no balance at August 31, ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Other Alberta school jurisdictions 5,453 Alberta Capital Finance Authority (Interest on longterm debt Supported) 45,582 60,290 Alberta Health Sen.ices 6,000 Postsecondary institutions 37, 115 Other salaries & benefit costs 518,257 Other trade payables and accrued liabilities 1,901,931 1,121,267 Total g;? Al'::" 770 g; 1?~n 1?"' 21

22 6. DEFERRED REVENUE Canadian Rockies Regional Division No. 12 Notes to the Financial Statements For the year ended August 31, 2016 SOURCE AND GRANT OR FUND TYPE Unexpended deferred operating revenue Alberta Education: DEFERRED REVENUE as at Aua lnfi"astructure Maintenance Renewal 798,524 Other Alberta Education: School Leadership 350,000 Other Alberta Education: Building Collaboration Other Alberta Education: Dual Credit 123,299 Other Government of Alberta: Health & Wellness: School Wellness 1,041 Other Deferred Revenue: School Generated Funds 501,115 Fees Other: Nutritional AdlAsory 7,944 Other: International Student Tuitions 861,690 Other: Red Cross 117,494 Other: Banff Canmore Community Found. Greenhouse Other: Outdoor Leaming Centre 213,261 Total unexpended deferred operating revenue 2,974,368 Unexpended deferred capital revenue (Schedule 2) 1,294,372 Expended deferred capital revenue (Schedule 2) 32,489,283 Total Cl: "" 7<:<> n?'l ADD: 2015/2016 Restricted Funds Received Receivable 371,016 42, ,000 1, 193,559 2,738 1,357,276 48,136 7,500 17,500 3,080,129 Cl: 1,893, 114 3,012,386 7 OSI<: "'ln DEDUCT: 2015/2016 DEFERRED Restricted Fundi REVENUE Expended as at!paid I Pavablel Aua. 31, 2016 (351,205) 818, ,000 (6,747) 35,658 (133,2991 (1,914) 29, 127 (1,282, 767) 411,907 2,738 (104' 7,841 (1,295, 107) 923,860 (165,629) 7, (20, , 761 (3,256,772) 2,797,725 (3,012,386) 175, 100 (1,291,007 34,210,663 Cl: 17 ""n 1""' Ci: 17 1<1'> A<l<I 7. DEBT Debenture Debt Supported The debenture debt bears interest at rates varying between 9.25% and 10.5%. The debenture debt is fully supported by Alberta Finance. All debentures will be paid in full as of fiscal year Debenture payments due over the next four years are as follows: Principal Interest Total , , , ,590 91, , ,590 54, , ,640 17, ,459 Total 1,398, ,749 1,691,359 Capital Loans The School Jurisdiction has a capital loan outstanding in the amount of 58,299 with interest at 5.5% per annum and expiring on March 1, The following is a summary of principal and interest payments on the long term debt outstanding at August 31,2016 Principal Interest Total ,299 1,675 59,974 Total 58,299 1,675 59,974 22

23 Canadian Rockies Regional Division No. 12 Notes to the Financial Statements For the year ended August 31, ACCUMULATED SURPLUS: Detailed information related to accumulated surplus is available on the Schedule of Changes in Accumulated Surplus. Accumulated surplus may be summarized as follows: Unrestricted surplus 883, ,485 Operating reser..es 656,000 1,731,000 Accumulated surplus (deficit) from operations 1,539,503 1,940,485 lm.estment in tangible capital assets 2,757,582 2,274,745 Capital reser..es 1,384, ,181 Accumulated remeasurement gains (losses) Accumulated surplus (deficit) 5,681,644 4,876, CONTRACTUAL OBLIGATIONS Buildina oroiects ' 1 l 5,448, ,280 Ser.ice providers ' 2 l 89, ,272 Total 5,537, ,552 ' 1 l Building projects: The jurisdiction has received approval for capital expenditures of 8,468,299 as a first phase in the replacement of Banff Elementary School. Construction is underway and is expected to be completed July It is anticipated that 100% of these costs will be funded by capital revenue from Alberta Education. ( 3 l Service providers: As at August 31, 2016, the jurisdiction has 89,017 ( ,272) in commitments relating to service contracts. Estimated payment requirements for each of the next five years and thereafter are as follows: Building Projects Service Providers ,448,104 22, , , ,254 Thereafter 5,448,104 89, CONTINGENT LIABILITIES The jurisdiction is a member of a reciprocal insurance exchange called ASBIE. A portion of the premiums paid each year represents equity contributions to the insurance fund. These payments have been recorded as expenses in the financial statements, as the value of equity is subject to liability claims. 11. TRUSTS UNDER ADMINISTRATION These balances represent assets that are held in trust by the jurisdiction. They are not recorded in the statements of the Division Deferred salary leaw plan 119, ,392 Scholarship trusts 116, ,912 Total!!;?':\~ i:;i:;~!!; '>':>.A "lnli 23

24 Canadian Rockies Regional Division No. 12 Notes to the Financial Statements For the year ended August 31, SCHOOL GENERATED FUNDS School Generated Funds, Beginning of Year Gross Receipts: Fees Fundraising Gills and donations Grants to schools Other sales and services Total gross receipts , , ,404 1,229, , , , ,075 57,168 1,193,558 1,871,006 Total Related Expenses and Uses of Funds Total Direct Costs Including Cost of Goods Sold to Raise Funds 978,804 1,595, , ,483 School Generated Funds, End of Year s 411 QOF; s ~ Balance included in Deferred Re.enue* Balance included in Accumulated Surplus (Operating Reser.es)** 411, , RELATED PARTY TRANSACTIONS All entities that are consolidated in the accounts of the Government of Alberta are related parties of school jurisdictions. These include government departments, health authorities, postsecondary institutions and other school jurisdictions in Alberta. Government of Alberta (GOA): Alberta Education Accounts receivable I Accounts payable Prepaid expenses I Deferred operating re.enue Une pen ed de ed capital re nue Expended deferre capital re nue Grant re.enue & expenses A TRF payments made on behalf of district Other re.enues & expenses Other Alberta school jurisdictions Alberta Treasury Board and Finance (Principal) Alberta Treasury Board and Finance (Accrued interest) e Financial Assets (at cost or net realizable value) Balances 79,525 Liabilities (at amortized cost) Revenues Transactions Expenses Postsecondary institutions Alberta Infrastructure Alberta Labour Agriculture, Food, and Rural Development TOTAL TOTAL 201 6,430 1 ' 22 8 ' 37 5,647 6,430 1,008 24