AUDITED FINANCIAL STATEMENTS FOR THE YEARS ENDED AUGUST 31, 2012 and AUGUST 31, 2013 [School Act, Sections 147(2)(a), 148, 151(1) and 276]

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1 School Jurisdiction Code: 0152 AUDITED FINANCIAL STATEMENTS FOR THE YEARS ENDED AUGUST 31, 2012 and AUGUST 31, 2013 [School Act, Sections 147(2)(a), 148, 151(1) and 276] Calgary Girls' School Society Legal Name of School Jurisdiction #203, th Avenue SE, Calgary Alberta T2H 2J6 Mailing Address Phone: Fax Telephone & Fax Numbers, and Address SCHOOL JURISDICTION MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING The financial statements of Calgary Girls' School Society 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 Chairman 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 Tamarra McCarron Name "Original Signed" Signature SUPERINTENDENT Susan Ditchburn Name "Original Signed" Signature SECRETARY-TREASURER OR TREASURER Wendy Juergens Name "Original Signed" Signature November 20, 2013 Board-approved Release Date c.c. ALBERTA EDUCATION, Financial Reporting & Accountability Branch 8th Floor Commerce Place, Street, Edmonton AB T5J 4L5 sarah.brennan@gov.ab.ca PHONE: (780) (Toll free ) FAX: (780)

2 School Jurisdiction Code: 0152 TABLE OF CONTENTS Page INDEPENDENT AUDITOR'S REPORT 3 STATEMENTS OF FINANCIAL POSITION 4 STATEMENTS OF OPERATIONS 5 STATEMENTS OF CASH FLOWS 6 STATEMENTS OF CHANGE IN NET FINANCIAL ASSETS (NET DEBT) 7 STATEMENT OF REMEASUREMENT GAINS AND LOSSES 8 SCHEDULE OF CHANGES IN ACCUMULATED SURPLUS ( ) 9 SCHEDULE OF CHANGES IN ACCUMULATED SURPLUS ( ) 11 SCHEDULE OF CAPITAL REVENUE ( ) 13 SCHEDULE OF CAPITAL REVENUE ( ) 14 SCHEDULE OF PROGRAM OPERATIONS 15 NOTES TO THE FINANCIAL STATEMENTS 16 2

3 Independent Auditors' Report To the Members of Calgary Girls' School Society: We have audited the accompanying financial statements of Calgary Girls' School Society, which comprise the statement of financial position as at August 31, 2013 and August 31, 2012 and September 1, 2011 and the statements of operations, cash flows, change in net financial assets (net debt), remeasurement gains and losses, and change in accumulated surplus for the years ended August 31, 2013 and August 31, 2012, and a summary of significant accounting policies, other explanatory information and unaudited supplementary schedules. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We 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 auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion. Basis for Qualified Opinion In common with many not-for-profit organizations, the Society derives a portion of its revenue from gifts and donations and fundraising, the completeness of which is not susceptible to satisfactory audit verification. Accordingly, our verification of these revenues was limited to the amounts recorded in the records of the Society and we were not able to determine whether any adjustments might be necessary to gifts and donations and fundraising, excess of revenue over expenses, assets and net assets. Qualified Opinion In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements present fairly in all material respects the financial position of Calgary Girls' School Society as at August 31, 2013, August 31, 2012 and September 1, 2011 and the results of its operations, change in net financial assets (net debt), remeasurement gains and losses, change in accumulated surplus and its cash flows for the years then ended in accordance with Canadian public sector accounting standards. Comparative Information Without modifying our opinion, we draw attention to Note 2 of the financial statements which describes that the Calgary Girls' School Society adopted Canadian Public Sector Accounting standards without not-for-profit provisions on September 1, 2012 with a transition date of September 1, These standards were applied retrospectively by management to the comparative information in these financial statements, including the statement of financial position as at August 31, 2012 and September 1, 2011, and the statements of operations change in net financial assets (net debt), remeasurement gains and losses, change in accumulated surplus and cash flows for the year ended August 31, 2012 and related disclosures. Calgary, Alberta November 20, 2013 MAl?LLf' Chartered Accountants 3 MNP

4 School Jurisdiction Code: 0152 STATEMENTS OF FINANCIAL POSITION As at (in dollars) August 31 September FINANCIAL ASSETS Cash and cash equivalents (Note 4) $338,310 $1,043,294 $648,440 Accounts receivable (net after allowances) (Note 5) $39,478 $41,410 $34,626 Portfolio investments (Note 6) $3,702,436 $3,364,580 $3,307,972 Other financial assets $0 $0 $0 Total financial assets $4,080,224 $4,449,284 $3,991,038 LIABILITIES Bank indebtedness $0 $0 $0 Accounts payable and accrued liabilities $183,631 $183,244 $76,945 Deferred revenue (Note 7) $576,330 $900,423 $635,762 Employee future benefit liabilities $18,104 $6,543 $9,328 Other liabilities $0 $0 $4,765 Debt (Note 8) Supported: Debentures and other supported debt $0 $0 $0 Unsupported: Debentures and capital loans $0 $0 $0 Capital leases $395,775 $54,022 $123,424 Mortgages $0 $0 $0 Total liabilities $1,173,840 $1,144,232 $850,224 Net financial assets (debt) $2,906,384 $3,305,052 $3,140,814 NON-FINANCIAL ASSETS Tangible capital assets (Note 9) Land $0 $0 $0 Construction in progress $0 $0 $0 Buildings $0 Less: Accumulated amortization $0 $0 $0 $0 Equipment $249,259 Less: Accumulated amortization ($212,959) $36,300 $40,586 $68,466 Vehicles $0 Less: Accumulated amortization $0 $0 $0 $0 Computer Equipment $537,058 Less: Accumulated amortization ($142,686) $394,372 $51,237 $147,373 Total tangible capital assets $430,672 $91,823 $215,839 Prepaid expenses $44,297 $95,815 $53,017 Other non financial assets $0 $0 $0 Total non-financial assets $474,969 $187,638 $268,856 Accumulated surplus $3,381,353 $3,492,690 $3,409,670 Accumulating surplus / (deficit) is comprised of: Accumulated operating surplus (deficit) $3,381,353 $3,492,690 $3,409,670 Accumulated remeasurement gains (losses) $0 $0 $0 $3,381,353 $3,492,690 $3,409,670 Contractual obligations Contingent liabilities The accompanying notes and schedules are part of these financial statements. 4

5 STATEMENTS OF OPERATIONS For the Years Ended August 31 (in dollars) School Jurisdiction Code: 0152 Budget Actual Actual REVENUES Alberta Education $6,209,058 Other - Government of Alberta (Note 10) $0 Federal Government and First Nations $0 Other Alberta school authorities $0 Out of province authorities $0 Alberta Municipalities-special tax levies $0 Property taxes $0 Fees (Note 11) $493,787 Other sales and services $161,685 Investment income $72,000 Gifts and donations $0 Rental of facilities $4,500 Fundraising $0 Gains (losses) on disposal of capital assets $0 Other revenue $139,350 $6,178,153 $6,207,234 $271,680 $75,468 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $617,631 $531,340 $0 $0 $55,674 $67,905 $12,558 $7,778 $5,000 $4,500 $0 $0 $15,175 $0 $244,754 $227,968 Total revenues $7,080,380 $7,400,625 $7,122,193 EXPENSES Instruction $5,043,159 Plant operations and maintenance $1,051,096 Transportation $773,208 Administration $317,364 External services $0 $5,460,006 $1,027,431 $776,360 $248,165 $0 $5,887,426 $339,355 $727,840 $84,552 $0 Total expenses $7,184,827 $7,511,962 $7,039,173 Operating surplus (deficit) ($104,447) ($111,337) $83,020 The accompanying notes and schedules are part of these financial statements. 5

6 School Jurisdiction Code: 0152 STATEMENTS OF CASH FLOWS For the Years Ended August 31 (in dollars) CASH FLOWS FROM: A. OPERATING TRANSACTIONS Operating surplus (deficit) ($111,337) $83,020 Add (Deduct) items not affecting cash: Total amortization expense $175,818 $124,015 Gains on disposal of tangible capital assets ($15,175) $0 Losses on disposal of tangible capital assets $0 $0 Changes in: Accounts receivable $1,932 ($6,784) Prepaids $51,518 ($42,797) Other financial assets $0 $0 Non financial assets $0 $0 Accounts payable and accrued liabilities $387 $106,299 Deferred revenue (Excluding EDCR) ($324,093) $264,661 Employee future benefit liabilitiies $11,561 ($2,785) Other (describe) Amortization of capital allocations revenue $0 ($4,765) Total cash flows from operating transactions ($209,389) $520,864 B. CAPITAL TRANSACTIONS Purchases of tangible capital assets Land $0 $0 Buildings $0 $0 Equipment ($11,259) $0 Vehicles $0 $0 Computer equipment ($537,058) $0 Net proceeds from disposal of unsupported capital assets $48,825 $0 Other (describe) $0 $0 Total cash flows from capital transactions ($499,492) $0 C. INVESTING TRANSACTIONS Changes in portfolio investments ($337,856) ($56,608) Remeasurement gains (losses) reclassified to the statement of operations $0 $0 Other (describe) $0 $0 Total cash flows from investing transactions ($337,856) ($56,608) D. FINANCING TRANSACTIONS Issue of debt $537,058 $0 Repayment of debt ($195,305) ($69,402) Other (describe) $0 $0 Total cash flows from financing transactions $341,753 ($69,402) Increase (decrease) in cash and cash equivalents ($704,984) $394,854 Cash and cash equivalents, at beginning of year $1,043,294 $648,440 Cash and cash equivalents, at end of year $338,310 $1,043,294 The accompanying notes and schedules are part of these financial statements. 6

7 School Jurisdiction Code: 0152 STATEMENTS OF CHANGE IN NET FINANCIAL ASSETS (NET DEBT) For the Years Ended August 31 (in dollars) Operating surplus (deficit) ($111,337) $83,020 Effect of changes in tangible capital assets Aquisition of tangible capital assets ($548,317) $0 Amortization of tangible capital assets $175,818 $124,015 Net carrying value of tangible capital assets disposed of $33,650 $0 Write down carrying value of tangible capital assets $0 $0 Total effect of changes in tangible capital assets ($338,849) $124,015 Changes in: Prepaid expenses $51,518 ($42,797) Other non financial assets $0 $0 Net remeasurement gains and (losses) $0 $0 Endowments $0 $0 Increase (decrease) in net financial assets (net debt) ($398,668) $164,238 Net financial assets (net debt) at beginning of year $3,305,052 $3,140,814 Net financial assets (net debt) at end of year $2,906,384 $3,305,052 The accompanying notes and schedules are part of these financial statements. 7

8 School Jurisdiction Code: 0152 STATEMENT OF REMEASUREMENT GAINS AND LOSSES For the Year Ended August 31, 2013 (in dollars) 2013 Opening accumulated remeasurement gains and (losses) upon adoption on September 1, 2012 $0 Unrealized gains (losses) attributable to: Portfolio investments $0 Other $0 Amounts reclassified to the statement of operations: Portfolio investments Other $0 Net remeasurement gains (losses) for the year $0 Accumulated remeasurement gains (losses) at end of year $0 The accompanying notes and schedules are part of these financial statements. 8

9 School Jurisdiction Code: 0152 School Jurisdiction Code: 0152 SCHEDULE OF CHANGES IN ACCUMULATED SURPLUS for the Year Ended August 31, 2013 (in dollars) SCHEDULE OF CHANGES IN ACCUMULATED SURPLUS for the Year Ended August 31, 2013 (in dollars) 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 School & Instruction Related Operating Capital INTERNALLY RESTRICTED RESERVES BY PROGRAM Board & System Operations & Maintenance Transportation Administration Operating Capital Operating Capital Operating Capital External Services Operating Capital Balance at August 31, 2012 $3,492,690 $0 $3,492,690 $37,802 $0 $3,454,888 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Prior period adjustments: Adjusted Balance, Aug. 31, 2012 $3,492,690 $0 $3,492,690 $37,802 $0 $3,454,888 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Operating surplus (deficit) ($111,337) ($111,337) ($111,337) Board funded tangible capital asset additions $11,259 ($11,259) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Disposal of unsupported tangible capital assets $0 $0 ($33,650) ($15,175) $48,825 $48,825 $0 $0 $0 $0 Disposal of supported tangible capital assets (board funded portion) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Write-down of unsupported tangible capital assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Write-down of supported tangible capital assets (board funded portion) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Net remeasurement gains (losses) for the year $0 $0 Endowment expenses $0 $0 $0 Direct credits to accumulated surplus $0 $0 $0 $0 Amortization of tangible capital assets $0 ($175,818) $175,818 Capital revenue recognized $0 $0 $0 Debt principal repayments (unsupported) $0 $195,306 ($195,306) Externally imposed endowment restrictions $0 $0 $0 $0 $0 $0 $0 $0 $0 Net transfers to operating reserves $0 ($30,947) $30,947 $30,947 $0 $0 $0 $0 Net transfers from operating reserves $0 $0 $0 $0 $0 $0 $0 $0 Net transfers to capital reserves $0 $0 $0 $0 $0 $0 $0 $0 Net transfers from capital reserves $0 $29,357 ($29,357) ($29,357) $0 $0 $0 $0 Assumption/transfer of other operations' surplus $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Balance at August 31, 2013 $3,381,353 $0 $3,381,353 $34,899 $0 $3,296,039 $30,947 $19,468 $30,947 $19,468 $0 $0 $0 $0 $0 $0 $0 $0 9

10 School Jurisdiction Code: 0152 School Jurisdiction Code: 0152 SCHEDULE OF CHANGES IN ACCUMULATED SURPLUS for the Year Ended August 31, 2012 (in dollars) SCHEDULE OF CHANGES IN ACCUMULATED SURPLUS for the Year Ended August 31, 2012 (in dollars) 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 School & Instruction Related Operating Capital INTERNALLY RESTRICTED RESERVES BY PROGRAM Board & System Operations & Maintenance Transportation External Services Administration Operating Capital Operating Capital Operating Capital Operating Capital Balance at August 31, 2011 $3,409,670 $0 $3,409,670 $87,650 $0 $3,322,020 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Prior period adjustments: Adjusted Balance, Aug. 31, 2011 $3,409,670 $0 $3,409,670 $87,650 $0 $3,322,020 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Operating surplus (deficit) $83,020 $83,020 $83,020 Board funded tangible capital asset additions $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Disposal of unsupported tangible capital assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Disposal of supported tangible capital assets (board funded portion) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Write-down of unsupported tangible capital assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Write-down of supported tangible capital assets (board funded portion) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Net remeasurement gains (losses) for the year $0 $0 Endowment expenses $0 $0 $0 Direct credits to accumulated surplus $0 $0 $0 $0 Amortization of tangible capital assets $0 ($124,015) $124,015 Capital revenue recognized $0 $4,765 ($4,765) Debt principal repayments (unsupported) $0 $69,402 ($69,402) Externally imposed endowment restrictions $0 $0 $0 $0 $0 $0 $0 $0 $0 Net transfers to operating reserves $0 $0 $0 $0 $0 $0 $0 $0 Net transfers from operating reserves $0 $0 $0 $0 $0 $0 $0 $0 Net transfers to capital reserves $0 $0 $0 $0 $0 $0 $0 $0 Net transfers from capital reserves $0 $0 $0 $0 $0 $0 $0 $0 Assumption/transfer of other operations' surplus $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Balance at August 31, 2012 $3,492,690 $0 $3,492,690 $37,802 $0 $3,454,888 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 11

11 0152 SCHEDULE OF CAPITAL REVENUE (EXTERNALLY RESTRICTED CAPITAL REVENUE ONLY) for the Year Ended August 31, 2013 (in dollars) 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, 2012 $0 $0 $0 $0 $0 Prior period adjustments $0 $0 $0 $0 $0 Adjusted balance, August 31, 2012 $0 $0 $0 $0 $0 Add: Unexpended capital revenue received from: Alberta Education school building & modular projects (excl. IMR) $0 Infrastructure Maintenance & Renewal capital related to school facilities $0 Other Government of Alberta $0 Federal Government and First Nations $0 Other sources $0 Unexpended capital revenue receivable from Alberta Education school building & modular $0 Unexpended capital revenue receivable from other than Alberta Education $0 $0 Interest earned on unexpended capital revenue $0 $0 $0 $0 Other unexpended capital revenue and donations $0 Net proceeds on disposal of supported tangible capital assets $0 $0 Insurance proceeds (and related interest) $0 $0 Donated tangible capital assets fair market value) $0 Public Private Partnership (P3), other Alberta Schools Alternative Program (ASAP) Initiative and Alberta Infrastructure managed projects $0 Transferred in tangible capital assets net book value) Expended capital revenue - current year $0 $0 $0 $0 $0 Surplus funds approved for future project(s) $0 $0 Deduct: Net book value of supported tangible capital dispositions, write-offs, or transfers $0 $0 $0 $0 $0 Capital revenue recognized $0 Balance at August 31, 2013 $0 $0 $0 $0 $0 (A) (B) (C) (D) Balance of Unexpended Deferred Capital Revenue at August 31, 2013 (A) + (B) + (C) + (D) $0 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. (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 restricted use capital assets to be expended on approved tangible 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 restricted use tangible capital assets. 13

12 0152 SCHEDULE OF CAPITAL REVENUE (EXTERNALLY RESTRICTED CAPITAL REVENUE ONLY) for the Year Ended August 31, 2012 (in dollars) 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, 2011 $0 $0 $0 $0 $4,765 Prior period adjustments $0 $0 $0 $0 $0 Adjusted balance, August 31, 2011 $0 $0 $0 $0 $4,765 Add: Unexpended capital revenue received from: Alberta Education school building & modular projects (excl. IMR) $0 Infrastructure Maintenance & Renewal capital related to school facilities $0 Other Government of Alberta $0 Federal Government and First Nations $0 Other sources $0 Unexpended capital revenue receivable from Alberta Education school building & modular $0 Unexpended capital revenue receivable from other than Alberta Education $0 $0 Interest earned on unexpended capital revenue $0 $0 $0 $0 Other unexpended capital revenue and donations $0 Net proceeds on disposal of supported tangible capital assets $0 $0 Insurance proceeds (and related interest) $0 $0 Donated tangible capital assets fair market value) $0 Public Private Partnership (P3), other Alberta Schools Alternative Program (ASAP) Initiative and Alberta Infrastructure managed projects $0 Transferred in tangible capital assets net book value) $0 Expended capital revenue - current year $0 $0 $0 $0 $0 Surplus funds approved for future project(s) $0 $0 Deduct: Net book value of supported tangible capital dispositions, write-offs, or transfers $0 $0 $0 $0 $0 Capital revenue recognition $4,765 Balance at August 31, 2012 $0 $0 $0 $0 $0 (A) (B) (C) (D) Balance of Unexpended Deferred Capital Revenue at August 31, 2012 (A) + (B) + (C) + (D) $0 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. (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 restricted use capital assets to be expended on approved tangible 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 restricted use tangible capital assets. 14

13 SCHEDULE OF PROGRAM OPERATIONS for the Year Ended August 31, 2013 (in dollars) School Jurisdiction Code: 0152 Plant Operations Board & REVENUES Instruction and System External (ECS- Grade 12) Maintenance Transportation Administration Services TOTAL TOTAL (1) Alberta Education $4,583,692 $1,077,183 $312,878 $204,400 $0 $6,178,153 $6,207,234 (2) Other - Government of Alberta $271,680 $0 $0 $0 $0 $271,680 $75,468 (3) Federal Government and First Nations $0 $0 $0 $0 $0 $0 $0 (4) Other Alberta school authorities $0 $0 $0 $0 $0 $0 $0 (5) Out of province authorities $0 $0 $0 $0 $0 $0 $0 (6) Alberta Municipalities-special tax levies $0 $0 $0 $0 $0 $0 $ (7) Property Taxes $0 $0 $0 $0 $0 $0 $0 (8) Fees $275,641 $341,990 $0 $617,631 $531,340 (9) Other sales and services $0 $0 $0 $0 $0 $0 $0 (10) Investment income $55,674 $0 $0 $0 $0 $55,674 $67,905 (11) Gifts and donations $12,558 $0 $0 $0 $0 $12,558 $7,778 (12) Rental of facilities $5,000 $0 $0 $0 $0 $5,000 $4,500 (13) Fundraising $0 $0 $0 $0 $0 $0 $0 (14) Gains on disposal of tangible capital assets $15,175 $0 $0 $0 $0 $15,175 $0 (15) Other revenue $244,754 $0 $0 $0 $0 $244,754 $227,968 (16) TOTAL REVENUES $5,464,174 $1,077,183 $654,868 $204,400 $0 $7,400,625 $7,122,193 EXPENSES (17) Certificated salaries $3,205,721 $0 $0 $3,205,721 $3,042,434 (18) Certificated benefits $665,556 $0 $0 $665,556 $567,595 (19) Non-certificated salaries and wages $430,196 $0 $0 $0 $430,196 $422,610 (20) Non-certificated benefits $68,709 $0 $0 $0 $68,709 $61,177 (21) SUB - TOTAL $4,370,182 $0 $0 $0 $0 $4,370,182 $4,093,816 (22) Services, contracts and supplies $881,403 $1,027,431 $776,360 $248,165 $0 $2,933,359 $2,817,430 (23) Amortization of supported tangible capital assets $0 $0 $0 $0 $0 $0 $4,765 (24) Amortization of unsupported tangible capital assets $175,818 $0 $0 $0 $0 $175,818 $119,250 (25) Supported interest on capital debt $0 $0 $0 $0 $0 $0 $0 (26) Unsupported interest on capital debt $32,603 $0 $0 $0 $0 $32,603 $3,912 (27) Other interest and finance charges $0 $0 $0 $0 $0 $0 $0 (28) Losses on disposal of tangible capital assets $0 $0 $0 $0 $0 $0 $0 (29) Other expense $0 $0 $0 $0 $0 $0 $0 (30) TOTAL EXPENSES $5,460,006 $1,027,431 $776,360 $248,165 $0 $7,511,962 $7,039,173 (31) OPERATING SURPLUS (DEFICIT) $4,168 $49,752 ($121,492) ($43,765) $0 ($111,337) $83,020 15

14 Calgary Girls' School Society Notes to the Financial Statements For the year ended August 31, Incorporation and commencement of operations The Calgary Girls' School Society ("the Society" or "the School") is a non-profit society incorporated under the Societies Act of Alberta and operates a registered charter school in Calgary, Alberta. The School delivers education programs under the authority of the School Act, Revised statutes of Alberta 2000 chapter S-3. The School receives funding for instruction and support under Education Grants Regulation, which allows for the setting of conditions and use of grant monies. The School is limited on certain funding allocations and administration expenses. The Society is also a registered charitable organization with Canada Revenue Agency and is exempt from income taxes under Section 149(1) of the Income Tax Act ("the Act"). In order to maintain its status as a registered charity, the Society must meet certain requirements within the Act. In the opinion of management, these requirements have been met. 2. Conversion to Public Sector Accounting Standards Commencing with the fiscal year, the School Division has adopted Canadian Public Sector Accounting ("PSA") Standards without not-for-profit provisions. These financial statements are the first financial statements for which the Society has applied PSA standards with retroactive application. In preparing these financial statements, the Society has elected to use the following exemptions in accordance with CICA PSA Handbook Section 2125: Tangible capital asset impairment 1) The Society has elected to apply Section PS on a prospective basis from the date of transition per Section PS The transition to PSA has not affected the statement of financial position, statement of operations, statement of cash flows or statement of change in net assets previously reported under Canadian generally accepted accounting principles ("GAAP"). 3. 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 as summarized below: 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 short-term investments have a maturity of three months or less at acquisition and are held for the purpose of meeting short-term cash commitments rather than for investing. Portfolio Investments The School has investments in GIC's that have maturity dates of greater than 3 months. GIC's not quoted in an active market are reported at cost or amortized cost. Detailed information regarding portfolio investments is disclosed in Note 6. Accounts receivable Accounts receivable are shown net of allowance for doubtful debts. 16

15 Calgary Girls' School Society Notes to the Financial Statements For the year ended August 31, Significant accounting policies (Continued from previous page) Tangible capital assets Capital assets are recorded at cost. Amortization commences subsequent to the period of purchase over their estimated useful lives on a straight line basis at the following rates: Computer equipment Furniture and fixtures Leasehold improvements Rate 30% 20% 20% Assets under capital lease are amortized over the lease term, which is their useful life. All building component repairs are expensed as incurred and only property and equipment assets with a cost in excess of $5,000 are capitalized. Deferred revenue Deferred revenue includes contributions received for operations, which have stipulations that meet the definition of a liability per Section PS These contributions are recognized by the Society as once it has met all the 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. Pensions Pension costs included in these statements comprise the cost of employer contributions for the 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 Society 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 its jurisdiction is included in both revenues and expenses. For the school year ended August 31, 2013, the amount contributed by the Government was $335,565 ( $269,319). Operating and Capital 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 Directors. Capital reserves are restricted to capital purposes and may only be used for operating purposes with the approval of the Board and the Minister of Education. are disclosed in the Schedule of Changes in Accumulated Surplus. 17

16 Calgary Girls' School Society Notes to the Financial Statements For the year ended August 31, Significant accounting policies (Continued from previous page) 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 the School to ensure that certain programs are delivered, such as 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 has to meet in order to receive certain contributions. Stipulations describe what the School must perform in order to keep the contributions. Contributions without eligibility criteria or stipulations are recognized as revenue when the contributions are authorized by the transferring government or entity. Contributions with eligibility criteria but without stipulations are recognized as revenue when the contributions are authorized by the transferring government or entity and all eligibility criteria have been met. Contributions with stipulations are recognized as revenue in the period the stipulations are met, except when and to the extent that the contributions give rise to an obligation that meets the definition of a liability in accordance with Section PS Such liabilities are recorded as deferred revenue depending on the terms and conditions of the contributions. The following items fall under this category: Non-capital contributions for specific purposes are recorded as deferred revenue and recognized as revenue in the year the stipulated related expenses are incurred. Donations received from sponsors and through the fund raising efforts of both the Board of Directors and the School Council are recognized when the corresponding expense is incurred. Expenses Expenses are reported on an accrual basis. The cost of all goods consumed and services received during the school 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 Program reporting The School's operations have been segmented as follows: Grade 4-9 Instruction: This falls under the basic public education mandate. Plant and Operations Maintenance: The operation and maintenance of all school buildings. Transportation: The provision of regular and special education bus services (to and from school) whether contracted or board operated, including transportation facilities. Board and System Administration: The provision of board governance and system-based/central office administration. External Services: All projects, activities and services offered outside the public education mandate for students. Services offered beyond the mandate for public education are to be self-supporting, 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. 18

17 Calgary Girls' School Society Notes to the Financial Statements FortheyearendedAugust31, Significant accounting policies (Continued from previous page) 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 liabilities portray these rights and obligations in the financial statements. The Society recognizes a financial instrument when it becomes a party to a financial instrument contract. Financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities. Unless otherwise noted, it is management's opinion that the Society is not exposed to significant credit and liquidity risks, or market risk, which includes currency, interest rate and other price risks. All 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 of 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 write-downs or write-offs are reported in the Statement of Operations. Measurement uncertainty Preparation of these financial statements in accordance with PSAS requires management to make estimates and assumptions that impact reported amounts of assets and liabilities at the date of the financial statements and revenues and expenses during the reporting periods. Significant areas requiring the use of management estimates relate to the potential impairment of assets and rates for amortization of capital assets. Actual results could differ from those estimates. 4. Cash and cash equivalent Cash and temporary investments Operating account Savings account Parkdale Out of School Care Association Petty cash Restricted cash Casino account Parent council banks ,380 29,558 38, , ,163 27, , , ,799 79, , ,882 13, , ,310 1,043, Accounts receivable Federal government - Goods and Services Tax recoverable Other 31,302 8,176 39,478 32,219 9,191 41,410 19

18 . ' Calgary Girls' School Society Notes to the Financial Statements For the year ended August 31, Portfolio Investments As at August 31, 2013 the School held GIC's with maturities of greater than 3 months with a value of $3,702,436 ( $3,364,580). The GIC's are earning interest at rates between 1.50% and 2.15% ( % and 1.75%). It is management's opinion that the School is not exposed to significant interest rate or credit risk arising from these financial instruments. 7. Deferred revenue Deferred revenue represents funds, which were received during the school year but have not yet been earned in accordance with the Society's revenue recognition policies. These funds will be recognized as income as they are expended on approved projects. Deferred revenues, comprised of deferred fees and other receipts, unspent Casino Funds, school council funds and the modular building project, are as follows: Deferred transportation fees Deferred instructional resource fees Deferred other revenue School generated funds (Note 11) Deferred MacBook lease revenue Modular building project 193,506 49, , , , ,776 52,276 27, , , , ,423 Deferred MacBook lease revenue represents amounts collected in advance from students to cover the leasing and maintenance costs of computers that are used by students. 20

19 .. Calgary Girls' School Society Notes to the Financial Statements For the year ended August 31, Obligation under capital lease In 2013, the Society entered into two capital lease obligations for computer equipment secured by assets having a net book ~alue of $394,373 ( $50,475). The lease payments are approximately $15,167 ( $6, 109) per month including interest for a term of 36 months ( months) with maturity dates of October 15, 2015 and January 31, The interest rate implicit in both leases is 1.14% ( %). MacBook lease - long term 217, MacBook lease - current 178, ,775 54,022 54,022 Minimum lease payments until maturity related to the obligation under capital lease are as follows: , , ,940 Less: imputed interest (5,185) 395,775 Less: current portion (178,429) 217, Capital assets 2013 Accumulated Net book Cost amortization value Computer equipment Computer equipment under capital lease 537, , ,373 Furniture and fixtures 205, ,684 18,784 Leasehold improvements 43,791 26,275 17, , , , Net book value ,475 14,311 26,275 91,823 Capital assets includes assets under capital lease with a gross cost of $537,058 ( $269, 199), accumulated amortization of $142,685 ( $218,724), and amortization expense of $142,685 ( $67,300). During the year, the Society acquired computer equipment by means of the capital lease stated above with a cost of $537,058 ( $nil) and acquired office furniture for cash having a cost of $11,258 ( $nil). The Society disposed of computer equipment having a net book value of $33,650 (originally costing $603,258 and accumulated amortization of $569,608) for proceeds of $48,825. A $15, 175 gain on disposal was recognized on this transaction. There were no disposals during the year ended August 31,

20 .. Calgary Girls' School Society Notes to the Financial Statements For the year ended August 31, Government of Alberta - Other Revenue Deferred modular building project, beginning of year Project funding, Government of Alberta Miscellaneous funding Deferred portion of funding 246,696 24, , (246,696) 271,680 75, Fees Fees Transportation fees MacBook fees Instructional fees 341, , , ,765 53,890 52, , , School Generated Funds Deferred school generated revenue, beginning of year Gross receipts: Casino Government grant School council fundraising Total related expenses and uses of funds 148, ,226 69,005 59,350 15,672 (147,820~!12,453~ 144, ,773 22

21 Calgary Girls' School Society Notes to the Financial Statements For the year ended August 31, Remuneration and Monetary Incentives The Society has paid or accrued expenses for the year ended August 31, 2013 to or on behalf of the following positions and persons in groups as follows: Negotiated Board Members: FTE Remuneration Benefits Allowances Tamara Mccarron 1.0 $0 $0 $0 $0 Michael Pe er 1.0 $0 $0 $0 $0 Gre Tarr 1.0 $0 $0 $0 $0 Ivan Bernardo 1.0 $0 $0 $0 $0 Geordie MacPherson 1.0 $0 $0 $0 $0 Catherine He erud 1.0 $0 $0 $0 $0 Lisa MacKin non 1.0 $0 $0 $0 $0 Natal a Nicholson 1.0 $0 $0 $0 $0 Heather Currie 1.0 $0 $0 $0 $0 Jeffre Kahane 1.0 $0 $0 $0 $0 Miriam Berchuk 1.0 $0 $0 $0 $0 Kath Tiede 1.0 $0 $0 $0 $0 Subtotal 12.0 $0 $0 $0 $0 Su erintendent 0.8 $140,547 $0 $0 $0 $0 $0 Secreta ffreasu rer 0.6 $61,200 $3,375 $0 $0 $1,818 $0 Certificated Teachers 40.0 $3,205, 721 $665,556 $0 $0 $0 Non-certificated - Other 7.0 $368,996 $65,334 $0 $0 $ 14. Commitments TOTALS $3,776,464 $734,265 $0 $0 $1,818 $0 The Society entered into a lease for office space on September 1, 2010, which expires on August 31, The total payments per year on this lease amount to $16, , , Economic dependence The Society's primary source of funding is from the Alberta Government. The Society's ability to continue viable operations is dependent upon this continued funding. 23

22 Calgary Girls' School Society Notes to the Financial Statements For the year ended August 31, Financial instruments The Society's financial instruments consist of cash and temporary investments, accounts receivable, and accounts payable and accrued liabilities. It is management's opinion that the Society is not exposed to significant interest rate, currency or credit risks arising from these financial instruments. The fair values of these financial instruments approximate their carrying values, unless otherwise noted. 17. Comparative figures and budgeted amounts Certain comparative figures have been reclassified to conform with current year presentation. The budget was prepared by the School and approved by the Board of Directors on November 14, It is presented for information purposes only and has not been audited. 24