AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2016

Transcription

1 0020UHY7 School Jurisdiction Code: 20 AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2016 [School Act, Sections 147(2)(a), 148, 151(1) and 276] St. Thomas Aquinas Roman Catholic Separate Regional Division No. 38 Legal Name of School Jurisdiction Avenue Leduc AB T9E 6W9 Mailing Address (780) (780) Telephone & Fax Numbers, and Address SCHOOL JURISDICTION MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING The financial statements o St. Thomas Aquinas Roman Catholic Separate Regional Division No. 38 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 Thalia Hibbs Name "Original Signed" Signature SUPERINTENDENT Dr. Troy Davies Name "Original Signed" Signature SECRETARYTREASURER OR TREASURER Mr. Edward Latka Name "Original Signed" Signature November 24, 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: 20 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 31 Schedule 9: UNAUDITED SCHEDULE OF DIFFERENTIAL FUNDING 32 Schedule 10: UNAUDITED SCHEDULE OF CENTRAL ADMINISTRATION EXPENSES 33 2

3 ' ' 1201 Energy Square Street, NW Edmonton, AB TSJ 3L7 Kln<i dcomdftnl CHARTERED ACCOUNTANTS Tel : (780) Fax : (780) Independent Auditor's Report To the Board of Trustees, St. Thomas Aquinas Roman Catholic Separate Regional School Division No. 38 We have audited the accompanying financial statements of St. Thomas Aquinas Roman Catholic Separate Regional School Division No. 38 which comprise the statement of financial position as at August 31, 2016, the statements of operations, cash flows, change in net debt, remeasurement gains and losses and schedules (pages 9 to 16) for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of St. Thomas Aquinas Roman Catholic Separate Regional School Division No. 38 as at August 31, 2016 and the results of its operations and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Edmonton, AB November 24, 2016 CHARTERED ACCOUNTANTS 3

4 STATEMENT OF FINANCIAL POSITION As at August 31, 2016 (in dollars) School Jurisdiction Code: FINANCIAL ASSETS Cash and cash equivalents (Schedule 5) 5,409,710 4,330,825 Accounts receivable (net after allowances) (Note 3) 345, ,992 Portfolio investments Other financial assets Total financial assets 5,755,419 4,789,817 LIABILITIES Bank indebtedness (Note 4) Accounts payable and accrued liabilities (Note 5) 792, ,272 Deferred revenue (Note 6) 58,756,603 44,969,185 Employee future benefit liabilities Liability for contaminated sites Other liabilities Debt (Note 7) Supported: Debentures and other supported debt 156, ,129 Unsupported: Debentures and capital loans 327, ,093 Mortgages Capital leases Total liabilities 60,032,203 46,319,679 Net financial assets (debt) (54,276,784) (41,529,862) NONFINANCIAL ASSETS Tangible capital assets (Schedule 6) Land 1,566,553 1,566,553 Construction in progress 15,213, ,337 Buildings 73,607,859 Less: Accumulated amortization (30,828,381) 42,779,478 43,998,628 Equipment 2,896,192 Less: Accumulated amortization (1,571,662) 1,324,530 1,344,567 Vehicles 485,055 Less: Accumulated amortization (357,307) 127, ,228 Computer Equipment 237,987 Less: Accumulated amortization (90,634) 147, ,763 Total tangible capital assets 61,158,689 47,676,076 Prepaid expenses (Note 8) 438, ,235 Other nonfinancial assets (Note 9) 100, ,427 Total nonfinancial assets 61,696,879 47,993,738 Accumulated surplus (Schedule 1, Note 10) 7,420,095 6,463,876 Accumulating surplus / (deficit) is comprised of: Accumulated operating surplus (deficit) 7,420,095 6,463,876 Accumulated remeasurement gains (losses) 7,420,095 6,463,876 Contractual obligations (Note 11) Contingent liabilities 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: 20 Budget Actual Actual (Unaudited) REVENUES Alberta Education 33,381,986 Other Government of Alberta 561,348 Federal Government and First Nations 1,143,103 Other Alberta school authorities Out of province authorities Alberta municipalitiesspecial tax levies Property taxes 3,900,000 Fees (Schedule 8) 855,882 Other sales and services 1,160,500 Investment income 35,000 Gifts and donations 72,438 Rental of facilities 34,300 Fundraising 100,000 Gains on disposal of capital assets 34,650,872 32,117, , , ,025 1,145,450 12,247 5,738 4,598,430 3,984,031 1,097,423 1,178, , ,904 45,846 41,741 34,213 93,391 63,932 29, ,760 87,058 2,970 Other revenue EXPENSES Total revenues 41,244,557 42,951,166 40,274,251 Instruction ECS 1,457,380 1,938,786 1,646,976 Instruction Grades ,345,557 29,611,524 28,813,170 Plant operations and maintenance 6,248,428 6,910,840 6,668,423 Transportation 1,090,345 1,203,510 1,011,394 Board & system administration 1,885,759 1,980,347 1,986,115 External services 422, , ,910 Total expenses 41,449,469 41,994,947 40,540,988 Operating surplus (deficit) (204,912) 956,219 (266,737) The accompanying notes and schedules are part of these financial statements. 5

6 School Jurisdiction Code: 20 STATEMENT OF CASH FLOWS For the Year Ended August 31, 2016 (in dollars) CASH FLOWS FROM: A. OPERATING TRANSACTIONS Operating surplus (deficit) 956,219 (266,737) Add (Deduct) items not affecting cash: Total amortization expense 3,042,474 2,937,955 Gains on disposal of tangible capital assets (2,970) Losses on disposal of tangible capital assets 159,343 Expended deferred capital revenue recognition (2,738,142) (2,632,344) Deferred capital revenue writedown / adjustment Donations in kind Changes in: Accounts receivable 113, ,345 Prepaids (248,804) 76,158 Other financial assets Nonfinancial assets 28,276 (55,166) Accounts payable, accrued and other liabilities 102,762 (165,654) Deferred revenue (excluding EDCR) 16,525,560 2,856,618 Employee future benefit liabilities Accounts Payable for Capital Assets 311,322 Total cash flows from operating transactions 17,778,658 3,589,840 B. CAPITAL TRANSACTIONS Purchases of tangible capital assets Land Buildings (16,172,146) (1,390,274) Equipment (320,931) (675,677) Vehicles (13,722) (28,016) Computer equipment (18,288) (30,023) Net proceeds from disposal of unsupported capital assets 2, ,335 Accounts Payable for Capital Assets (311,322) Total cash flows from capital transactions (16,522,117) (2,299,977) 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 (177,656) (302,536) 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 (177,656) (302,536) Increase (decrease) in cash and cash equivalents 1,078, ,327 Cash and cash equivalents, at beginning of year 4,330,825 3,343,498 Cash and cash equivalents, at end of year 5,409,710 4,330,825 The accompanying notes and schedules are part of these financial statements. 6

7 School Jurisdiction Code: 20 STATEMENT OF CHANGE IN NET FINANCIAL ASSETS (NET DEBT) For the Year Ended August 31, 2016 (in dollars) Operating surplus (deficit) 956,219 (266,737) Effect of changes in tangible capital assets Acquisition of tangible capital assets (16,525,087) (2,123,990) Amortization of tangible capital assets 3,042,474 2,937,955 Net carrying value of tangible capital assets disposed of 294,678 Writedown carrying value of tangible capital assets Other changes Total effect of changes in tangible capital assets (13,482,613) 1,108,643 Changes in: Prepaid expenses (248,804) 76,158 Other nonfinancial assets 28,276 (55,166) Net remeasurement gains and (losses) Endowments Increase (decrease) in net financial assets (net debt) (12,746,922) 862,898 Net financial assets (net debt) at beginning of year (41,529,862) (42,392,760) Net financial assets (net debt) at end of year (54,276,784) (41,529,862) The accompanying notes and schedules are part of these financial statements. 7

8 School Jurisdiction Code: 20 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: 20 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, ,463,876 6,463,876 4,043,810 1,063,159 1,056, ,000 Prior period adjustments: Adjusted Balance, August 31, ,463,876 6,463,876 4,043,810 1,063,159 1,056, ,000 Operating surplus (deficit) 956, , ,219 Board funded tangible capital asset additions Disposal of unsupported tangible capital 65,366 (65,366) 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 (3,042,474) 3,042,474 Capital revenue recognized 2,738,142 (2,738,142) Debt principal repayments (unsupported) 79,002 (79,002) Additional capital debt or capital leases Net transfers to operating reserves (1,195,000) 1,195,000 Net transfers from operating reserves 35,122 (35,122) Net transfers to capital reserves (300,000) 300,000 Net transfers from capital reserves Assumption/transfer of other operations' surplus Other Changes Balance at August 31, ,420,095 7,420,095 3,883, ,464 2,216, ,000 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: 20 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 756, , , , , ,000 1,175,000 20,000 (35,122) 100, ,000 1,896, , , , ,000 10

11 SCHEDULE 2 SCHEDULE OF CAPITAL REVENUE (EXTERNALLY RESTRICTED CAPITAL REVENUE ONLY) for the Year Ended August 31, 2016 (in dollars) 20 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, ,543 25,748 43,226,173 Prior period adjustments Adjusted balance, August 31, ,543 25,748 43,226,173 Add: Unexpended capital revenue received from: Alberta Education school building & modular projects (excl. IMR) 16,598,393 Infrastructure Maintenance & Renewal capital related to school facilities Other sources: Playground donations 10,975 Other sources: Unexpended capital revenue receivable from: Alberta Education school building & modular (excl. IMR) 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 (16,444,507) (15,212) 16,459,719 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 2,287,988 Capital revenue recognized Other Government of Alberta 425,191 Capital revenue recognized Other revenue 24,963 Balance at August 31, ,429 21,511 56,947,750 (A) (B) (C) (D) Balance of Unexpended Deferred Capital Revenue at August 31, 2016 (A) + (B) + (C) + (D) 919,940 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: 20 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 2,354,631 23,711,315 5,755, ,796 1,952,765 34,650,872 32,117,706 (2) Other Government of Alberta 23, ,350 64, , ,968 (3) Federal Government and First Nations 927, ,025 1,145,450 (4) Other Alberta school authorities 12,247 12,247 5,738 (5) Out of province authorities (6) Alberta municipalitiesspecial tax levies (7) Property taxes 4,598,430 4,598,430 3,984,031 (8) Fees 98, , ,590 1,097,423 1,178,523 (9) Other sales and services 2, ,168 23,857 5, , , ,904 (10) Investment income 1,305 44,541 45,846 41,741 (11) Gifts and donations ,209 1,443 34,213 93,391 (12) Rental of facilities 29,859 34,073 63,932 29,740 (13) Fundraising 118, ,760 87,058 (14) Gains on disposal of tangible capital assets 2,970 2,970 (15) Other revenue (16) TOTAL REVENUES 2,456,109 30,817,257 6,263,645 1,005,633 2,007, ,885 42,951,166 40,274,251 EXPENSES (17) Certificated salaries 1,183,836 17,852, ,617 19,420,880 18,216,575 (18) Certificated benefits 267,493 4,040,613 66,769 4,374,875 4,286,429 (19) Noncertificated salaries and wages 271,686 3,444,766 1,592,262 39, , ,684 6,425,488 5,975,368 (20) Noncertificated benefits 60, , ,577 7, ,563 55,780 1,378,239 1,305,327 (21) SUB TOTAL 1,783,678 26,101,428 1,960,839 46,173 1,357, ,464 31,599,482 29,783,699 (22) Services, contracts and supplies 155,108 3,333,093 2,083,283 1,157, , ,215,512 7,522,009 (23) Amortization of supported tangible capital assets 2,738,142 2,738,142 2,632,344 (24) Amortization of unsupported tangible capital assets 166, ,417 33, , ,611 (25) Supported interest on capital debt 25,159 25,159 48,053 (26) Unsupported interest on capital debt 11,213 11,213 32,371 (27) Other interest and finance charges 10,087 11,656 21,743 (28) Losses on disposal of tangible capital assets 159,343 (29) Other expense 79,364 79,364 57,558 (30) TOTAL EXPENSES 1,938,786 29,611,524 6,910,840 1,203,510 1,980, ,940 41,994,947 40,540,988 (31) OPERATING SURPLUS (DEFICIT) 517,323 1,205,733 (647,195) (197,877) 27,290 50, ,219 (266,737) 12

13 SCHEDULE 4 School Jurisdiction Code: 20 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 1,210, , ,075 1,592,262 1,485,236 Uncertificated benefits 297,980 47,060 23, , ,983 Subtotal Remuneration 1,508, , ,612 1,960,839 1,828,219 Supplies and services 368,839 32, ,310 1,057, ,814 Electricity 431, , ,506 Natural gas/heating fuel 201, , ,363 Sewer and water 60,912 60,912 58,771 Telecommunications 244, , ,218 Insurance 89,041 89,041 92,478 ASAP maintenance & renewal payments 9,086 Amortization of tangible capital assets Supported 2,738,142 2,738,142 2,632,344 Unsupported 103, , ,228 Total Amortization 103,417 2,738,142 2,841,559 2,737,572 Interest on capital debt Supported 25,159 25,159 48,053 Unsupported Lease payments for facilities Other interest charges Losses on disposal of capital assets 159,343 TOTAL EXPENSES 1,877, , , , , ,417 2,763,301 6,910,840 6,668,423 SQUARE METRES School buildings 43, ,138.0 Non school buildings 1, ,295.0 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

14 SCHEDULE 5 School Jurisdiction Code: 20 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 5,409,710 5,409,710 4,330,825 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% 5,409,710 5,409,710 4,330,825 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

15 SCHEDULE 6 School Jurisdiction Code: 20 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 1,566, ,337 72,225,403 2,575, , ,699 77,517,074 75,704,365 Prior period adjustments Additions 14,789,690 1,382, ,931 13,722 18,288 16,525,087 2,123,989 Transfers in (out) Less disposals including writeoffs (35,488) (35,488) (311,280) 1,566,553 15,213,027 73,607,859 2,896, , ,987 94,006,673 77,517,074 Total Total Accumulated amortization Beginning of year 28,226,775 1,230, ,593 48,936 29,840,998 26,919,645 Prior period adjustments Amortization 2,601, ,968 58,202 41,698 3,042,474 2,937,955 Other additions Transfers in (out) Less disposals including writeoffs (35,488) (35,488) (16,602) 30,828,381 1,571, ,307 90,634 32,847,984 29,840,998 Net Book Value at August 31, ,566,553 15,213,027 42,779,478 1,324, , ,353 61,158,689 Net Book Value at August 31, ,566, ,337 43,998,628 1,344, , ,763 47,676,076 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 Tomkinson, John , ,375 Other members Bannard, Sandra , ,441 Chalifoux, Daniel , ,024 Effon, Henry , ,606 Hibbs, Thalia , ,969 Kathol, Susan , ,073 Lamer, Michelle , ,679 Richert, Karen , ,645 Svitch, Daniel , ,431 Subtotal ,772 3, ,243 Troy Davies, Superintendent ,860 39, ,406 Jeanne Fontaine, Secretary/Treasurer ,446 34, ,571 Edward Latka, Secretary/Treasurer ,143 5, ,023 Certificated teachers ,251,020 4,335, Noncertificated other ,096,127 1,334, TOTALS ,846,368 5,753, ,243 16

17 ST. THOMAS AQUINAS ROMAN CATHOLIC SEPARATE REGIONAL SCHOOL DIVISION NO. 38 Notes to the Financial Statements For the Year Ended August 31, AUTHORITY AND PURPOSE The School Division delivers education programs under the authority of the School Act, Revised Statutes of Alberta 2000, Chapter S3. This School Division is exempt from payment of income tax and is a registered charity under the Income Tax Act. The School Division 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 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 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 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) Inventories Inventories are measured at the lower of cost or net realizable value. 17

18 ST. THOMAS AQUINAS ROMAN CATHOLIC SEPARATE REGIONAL SCHOOL DIVISION NO. 38 Notes to the Financial Statements For the Year Ended August 31, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d) Tangible Capital Assets The following criteria applies: Tangible capital assets acquired or constructed are recorded at cost which includes amounts that are directly related to the acquisition, design, construction, development, improvement or betterment of the asset. Cost also includes overhead directly attributable to construction as well as interest costs that are directly attributable to the acquisition or construction of the asset. Donated tangible capital assets are recorded at their fair market value at the date of donation, except in circumstances where fair value cannot be reasonably determined, when they are then recognized at nominal value. Transfers of tangible capital assets from related parties are recorded at original cost less accumulated amortization. Workinprogress is recorded as an a transfer to the applicable asset class at substantial completion. Buildings include site and leasehold improvements as well as assets under capital lease. 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. Capital lease obligations are recorded at the present value of the minimum lease payments excluding executor costs, e.g., insurance, maintenance costs, etc. The discount rate used to determine the present value of the lease payments is the lower of the School Division s rate for incremental borrowing or the interest rate implicit in the lease. Tangible capital assets are amortized over their estimated useful lives on a straightline basis, at the following rates: Buildings 2% to 4% Vehicles & Buses 10% to 20% Computer Hardware & Software 20% to 25% Equipment & Furnishings 10% to 20% 18

19 ST. THOMAS AQUINAS ROMAN CATHOLIC SEPARATE REGIONAL SCHOOL DIVISION NO. 38 Notes to the Financial Statements For the Year Ended August 31, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) e) Deferred Revenue Deferred revenue includes contributions received for operations which have stipulations that meet the definition of a liability per 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 Unexpended Deferred Capital Revenue represent externally restricted supported capital funds provided for a specific capital purpose received or receivable by the School 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 PSAS PS 3200 when expended. 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 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 Division to use the asset in a prescribed manner over the life of the associated asset. f) Asset Retirement Obligations Liabilities are recognized for statutory, contractual or legal obligations associated with the retirement of tangible capital assets when those obligations result from the acquisition, construction, development or normal operation of the assets. The obligations are measured initially at fair value, determined using present value methodology, and the resulting costs are capitalized into the carrying amount of the related asset. In subsequent periods, the liability is adjusted for the accretion of discount and any changes in the amount or timing of the underlying future cash flows. The capitalized asset retirement cost is amortized on the same basis as the related asset and the discount accretion is included on the Statement of Operations. The School Division has determined that it has a conditional asset retirement obligation relating to certain school sites. These obligations will be discharged in the future by funding through the Alberta Government. The School Division believes that there is insufficient information to estimate the fair value of the asset retirement obligation because the settlement date or the range of potential settlement dates has not been determined and information is not available to apply an expected present value technique. 19

20 ST. THOMAS AQUINAS ROMAN CATHOLIC SEPARATE REGIONAL SCHOOL DIVISION NO. 38 Notes to the Financial Statements For the Year Ended August 31, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 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 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 PSAS PS Such liabilities are recorded as deferred revenue. The following items fall under this category. Noncapital contributions for specific purposes are recorded as deferred revenue and recognized as revenue in the year the stipulated related expenses are incurred; Unexpended Deferred Capital Revenue; or Expended Deferred Capital Revenue. 20

21 ST. THOMAS AQUINAS ROMAN CATHOLIC SEPARATE REGIONAL SCHOOL DIVISION NO. 38 Notes to the Financial Statements For the Year Ended August 31, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 a. Actual salaries of personnel assigned to two or more programs are allocated based on the time spent in each program. b. Employee benefits and allowances are allocated to the same programs, and in the same proportions, as the individual s salary. c. 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 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 School Division is included in both revenues and expenses. For the school year ended August 31, 2016, the amount contributed by the Government was 2,274,361 (2015 2,559,350). The School Division maintains an optional defined contribution plan under which amounts are contributed to employees RRSP accounts. Expense for this plan is equal to the organization s required contributions for the year. Pension expense for the year is 259,178 ( ,365). k) Program Reporting The School 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 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. 21

22 ST. THOMAS AQUINAS ROMAN CATHOLIC SEPARATE REGIONAL SCHOOL DIVISION NO. 38 Notes to the Financial Statements For the Year Ended August 31, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) l) Program Reporting (Continued) External Services: All projects, activities, and services offered outside the public education mandate for ECS children and students in grades 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 and services, school administration and instruction support, and System Instructional Support. m) Trusts Under Administration 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 School Division holds title to the property for the benefit of the beneficiary. Trusts under administration have been excluded from the financial reporting of the School Division. Trust balances can be found in Note 12. n) 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 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, 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 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. 22

23 ST. THOMAS AQUINAS ROMAN CATHOLIC SEPARATE REGIONAL SCHOOL DIVISION NO. 38 Notes to the Financial Statements For the Year Ended August 31, ACCOUNTS RECEIVABLE Gross Amount Allowance for Doubtful Accounts Net Realizable Value Net Realizable Value Alberta Education Funding Framew ork 22,536 22,536 30,844 Other Alberta school jurisdictions 12,547 12,547 28,093 Treasury Board and Finance Supported debenture principal 156, , ,129 Treasury Board and Finance Accrued interest on supported debentures 7,280 7,280 12,256 Federal government 67,996 67, ,060 Other 78,876 78,876 21,610 Total 345, , , BANK INDEBTEDNESS The School Division has negotiated a line of credit in the amount of 500,000 that bears interest at bank prime less 0.25%. This line of credit is secured by a borrowing bylaw and a security agreement. There was no balance outstanding on the line of credit at August 31, 2016 (2015 nil). 5. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Alberta Education 14,345 41,206 Other Alberta school jurisdictions 31,929 Alberta Capital Finance Authority (Interest on longterm debt Supported) 7,280 12,256 Accrued vacation pay 46,017 38,922 Other salaries & benefit costs 3, Other trade payables and accrued liabilities 688, ,381 Total 792, ,272 23

24 ST. THOMAS AQUINAS ROMAN CATHOLIC SEPARATE REGIONAL SCHOOL DIVISION NO. 38 Notes to the Financial Statements For the Year Ended August 31, DEFERRED REVENUE ADD: DEDUCT: SOURCE AND GRANT OR FUND TYPE DEFERRED 2015/ /2016 DEFERRED Unexpended deferred operating revenue Alberta Education: REVENUE Restricted Funds Restricted Funds REVENUE as at Received/ Expended as at Aug. 31, 2015 Receivable (Paid / Payable) Aug. 31, 2016 Infrastructure Maintenance Renew al 882, ,969 (655,310) 769,353 Other Government of Alberta: Alberta Education 2,010 (2,010) Health and Wellness 3, ,421 (138,357) 36,090 BCCE Grant 22,082 (5,091) 16,991 Other Deferred Revenue: School Generated Funds 27,785 16,870 (27,785) 16,870 Fees 20,532 16,243 (20,532) 16,243 Transportation 7, (7,200) 491 Other Municipalities 18,788 18,514 (18,788) 18,514 Other 10,686 3,774 (99) 14,361 Total unexpended deferred operating revenue 972, ,364 (875,172) 888,913 Unexpended deferred capital revenue 770,291 16,609,368 (16,459,719) 919,940 Expended deferred capital revenue 43,226,173 16,459,719 (2,738,142) 56,947,750 Total 44,969,185 33,860,451 (20,073,033) 58,756,603 24

25 ST. THOMAS AQUINAS ROMAN CATHOLIC SEPARATE REGIONAL SCHOOL DIVISION NO. 38 Notes to the Financial Statements For the Year Ended August 31, DEBT Debentures ourstanding at August 31, The debentures are 2025 years, payments made annually. 156, ,129 Debenture Debt Supported The debenture debt bears interest at rates varying between 8.875% and %. The debenture debt is fully supported by Alberta Finance. Debenture payments due over the next five years and beyond are as follows: Principal Interest Total ,856 15,157 85, ,414 8,397 49, ,092 4,395 33, ,112 1,548 17, to maturity Total 156,474 29, ,971 Capital Loans Unsupported The School Division has capital loans outstanding in the amount of 327,092. The capital loans bear interest at 2.90% and 3.15% per annum and expire in July 2018 and November 2019, respectively. The following is a summary of principal and interest payments on related longterm debt outstanding at August 31, 2016: Principal Interest Total ,618 8,768 85, ,700 6, , ,716 1,166 48, , , to maturity Total 327,092 16, ,211 25

26 ST. THOMAS AQUINAS ROMAN CATHOLIC SEPARATE REGIONAL SCHOOL DIVISION NO. 38 Notes to the Financial Statements For the Year Ended August 31, PREPAID EXPENSES Prepaid expenses consist of the following: Prepaid services/supplies 428, ,235 Other 9,448 Total 438, , OTHER NONFINANCIAL ASSETS Other nonfinancial assets consist of the following: Inventory 89,752 77,128 Inventory School Start Up 10,399 51,299 Total 100, ,427 26

27 ST. THOMAS AQUINAS ROMAN CATHOLIC SEPARATE REGIONAL SCHOOL DIVISION NO. 38 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 719,464 1,063,159 Operating reserves 2,216,785 1,056,907 Accumulated surplus from operations 2,936,249 2,120,066 Investment in tangible capital assets 3,883,846 4,043,810 Capital reserves 600, ,000 Accumulated surplus 7,420,095 6,463,876 Accumulated surplus from operations includes funds of 499,102 that are raised at school level and are not available to spend at board level. The School Division s adjusted surplus from operations is calculated as follows: Accumulated surplus from operations 2,936,249 2,120,066 Deduct: School generated funds included in accumulated surplus (Note 13) 499, ,665 Adjusted accumulated surplus (1) 2,437,147 1,577,401 (1) Adjusted accumulated surplus from operations represents funds available for use by the School Division after deducting funds raised at schoollevel. 11. CONTRACTUAL OBLIGATIONS Photocopier Lease The School Division s current lease on photocopier equipment expires on November 27, The minimum annual lease charge is 17,988 plus GST for each year of the contract. 27

28 ST. THOMAS AQUINAS ROMAN CATHOLIC SEPARATE REGIONAL SCHOOL DIVISION NO. 38 Notes to the Financial Statements For the Year Ended August 31, TRUSTS UNDER ADMINISTRATION These balances represent assets that are held in trust by the School Division. They are not recorded in the statements of the School Division Deferred salary leave plan 78, ,557 Scholarship trusts 60,594 62,259 Edmonton Regional Learning Consortium 257,043 Total 139, , SCHOOL GENERATED FUNDS School Generated Revenue, Beginning of Year 570, ,158 Gross Receipts: Fees 275, ,277 Fundraising 108,183 89,771 Gifts and donations 13,499 42,854 Other sales and services 370, ,096 Total gross receipts 768,205 1,324,998 Total Related Expenses and Uses of Funds 782,866 1,243,514 Total Direct Costs Including Cost of Goods Sold to Raise Funds 39,817 59,192 School Generated Revenues, End of Year 515, ,450 Balance included in Deferred Revenue 16,870 27,785 Balance included in Accumulated Surplus (Operating Reserves) 499, ,665 28