AUDITED FINANCIAL STATEMENTS

Transcription

1 Schools' Finance Branch Portage Avenue Winnipeg, Manitoba R3G 0T3 SEINE RIVER SCHOOL DIVISION 475A SENEZ STREET LORETTE, MANITOBA R0A 0Y0 AUDITED FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION June 30, 2018

2 TABLE OF CONTENTS 2017/2018 FINANCIAL STATEMENTS PAGE AUDITOR'S REPORT AUDITOR'S REPORT ON ENROLMENT (with EIS Cert. part 2 of 2) AUDITOR'S MANAGEMENT LETTER MANAGEMENT RESPONSIBILITY LETTER ORGANIZATIONAL CHART CONSOLIDATED STATEMENT OF FINANCIAL POSITION 1 STATEMENT OF REVENUE, EXPENSES AND ACCUMULATED SURPLUS 2 STATEMENT OF CHANGE IN NET DEBT 3 STATEMENT OF CASH FLOW 4 NOTES TO THE FINANCIAL STATEMENTS ANALYSIS OF CONSOLIDATED ACCUMULATED SURPLUS 5 OPERATING FUND SCHEDULE OF FINANCIAL POSITION 6 SCHEDULE OF REVENUE, EXPENSES AND ACCUMULATED SURPLUS 7 REVENUE DETAIL: PROVINCE OF MANITOBA 8 9 REVENUE DETAIL: NONPROVINCIAL GOVERNMENT SOURCES 10 EXPENSE BY FUNCTION AND BY OBJECT 11 EXPENSE DETAIL Function 100: Regular Instruction 12 Function 200: Student Support Services 13 Function 300: Adult Learning Centres 14 Function 400: Community Education and Services 15 Function 500: Divisional Administration 16 Function 600: Instructional and Other Support Services 17 Function 700: Transportation of Pupils 18 Function 800: Operations and Maintenance 19 DETAIL OF TRANSFERS TO (FROM) CAPITAL FUND 20 CAPITAL FUND SCHEDULE OF FINANCIAL POSITION 21 SCHEDULE OF REVENUE, EXPENSES AND ACCUMULATED SURPLUS 22 SCHEDULE OF TANGIBLE CAPITAL ASSETS 23 SCHEDULE OF RESERVE ACCOUNTS 24 SPECIAL PURPOSE FUND SCHEDULE OF FINANCIAL POSITION 25 SCHEDULE OF REVENUE, EXPENSES AND ACCUMULATED SURPLUS 26 STUDENT ENROLMENTS (FRAME) AND TRANSPORTATION STATISTICS (unaudited) 27 FULL TIME EQUIVALENT PERSONNEL (unaudited) 28 CALCULATION OF ADMINISTRATION COSTS (audited) 29

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8 Seine River School Division Organizational Chart Board of Trustees Superintendent Admin Assistant Secretary Treasurer Admin Assistant Assistant Superintendent CI Assistant Superintendent Student Services Admin Assistant Maintenance Supervisor Transport Supervisor Finance Manager HR Consultant IT Manager Workplace Safety & Health Officer Numeracy Consultant Art Consultant Divisional Drama Teacher Social Studies Consultant Coordinator French Immersion Programming School Administration Clinicians K6 Student Services Consultant 712 Student Services Consultant Maintenance Coordinator Operations Coordinator Payroll Clerks (2) Secretary Reception IT Technicians (3) Resource Teachers / Counsellors Secretaries/Lib. Techs Teachers Educational Assistants Custodians HVAC Person Secretary/ Dispatcher (3) Accounts Payable Secretary HR Support Software Support (2) Utility Maint.(2) Mechanics (4) Courier Driver Accounting Assistant Bus Drivers & Monitors

9 Seine River School Division CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at June 30 Notes Financial Assets Cash and Bank Due from Provincial Government 1,030,096 1,090,737 Federal Government 161, ,041 Municipal Government 10,442,814 9,606,955 Other School Divisions 46,554 13,337 First Nations Accounts Receivable 83, ,713 Accrued Investment Income Portfolio Investments 11,763,706 10,975,783 Liabilities * Overdraft 3,280,035 3,656,592 Accounts Payable 786,378 1,428,642 Accrued Liabilities 828, ,260 * Employee Future Benefits 241, ,276 Accrued Interest Payable 483, ,968 Due to Provincial Government 176, ,648 Federal Government 2,277,058 2,148,275 Municipal Government 68,786 68,334 Other School Divisions First Nations * Deferred Revenue 2,125,177 1,296,850 * Borrowings from the Provincial Government 27,768,422 27,086,156 Other Borrowings School Generated Funds Liability 50,674 51,149 38,086,600 37,224,150 Net Debt (26,322,894) (26,248,367) NonFinancial Assets * Net Tangible Capital Assets (TCA Schedule) 39,322,618 38,665,267 Inventories Prepaid Expenses 6,813 13,069 39,329,431 38,678,336 * Accumulated Surplus 13,006,537 12,429,969 See accompanying notes to the Financial Statements 1

10 Seine River School Division CONSOLIDATED STATEMENT OF REVENUE, EXPENSES AND ACCUMULATED SURPLUS For the Year Ended June 30 Notes Revenue Provincial Government 40,398,190 40,204,483 Federal Government 20, ,864 Municipal Government Property Tax 16,176,201 14,592,037 Other Other School Divisions 300, ,538 First Nations 20,687 Private Organizations and Individuals 50, ,901 Other Sources 104,023 63,505 School Generated Funds 670, ,176 Other Special Purpose Funds 57,740,653 56,136,504 Expenses Regular Instruction 30,538,397 28,984,408 Student Support Services 8,850,554 8,512,089 Adult Learning Centres 313, ,175 Community Education and Services 484, ,060 Divisional Administration 1,658,620 1,691,192 Instructional and Other Support Services 1,780,626 1,673,868 Transportation of Pupils 3,406,005 3,171,465 Operations and Maintenance 4,987,203 5,071,713 * Fiscal Interest 1,232,395 1,255,841 Other 867, ,797 Amortization 2,311,852 2,222,140 Other Capital Items School Generated Funds 656, ,095 Other Special Purpose Funds 57,087,831 54,890,843 Current Year Surplus (Deficit) before Nonvested Sick Leave 652,822 1,245,661 Less: Nonvested Sick Leave Expense (Recovery) 76,254 (11,627) Net Current Year Surplus (Deficit) 576,568 1,257,288 Opening Accumulated Surplus 12,429,969 11,172,681 Adjustments: Tangible Cap. Assets and Accum. Amort. Other than Tangible Cap. Assets Nonvested sick leave prior years Opening Accumulated Surplus, as adjusted 12,429,969 11,172,681 Closing Accumulated Surplus 13,006,537 12,429,969 See accompanying notes to the Financial Statements * NOTE REQUIRED 2

11 Seine River School Division CONSOLIDATED STATEMENT OF CHANGE IN NET DEBT For the Year Ended June 30, Net Current Year Surplus (Deficit) 576,568 1,257,288 Amortization of Tangible Capital Assets 2,311,852 2,222,140 Acquisition of Tangible Capital Assets (2,969,203) (3,033,067) (Gain) / Loss on Disposal of Tangible Capital Assets (13,000) (8,913) Proceeds on Disposal of Tangible Capital Assets 13,000 73,600 (657,351) (746,240) Inventories (Increase)/Decrease Prepaid Expenses (Increase)/Decrease 6,256 (12,561) 6,256 (12,561) (Increase)/Decrease in Net Debt (74,527) 498,487 Net Debt at Beginning of Year (26,248,367) (26,746,854) Adjustments Other than Tangible Cap. Assets (26,248,367) (26,746,854) Net Debt at End of Year (26,322,894) (26,248,367) 3

12 Seine River School Division CONSOLIDATED STATEMENT OF CASH FLOW For the Year Ended June 30, Operating Transactions Net Current Year Surplus (Deficit) 576,568 1,257,288 NonCash Items Included in Current Year Surplus/(Deficit): Amortization of Tangible Capital Assets 2,311,852 2,222,140 (Gain)/Loss on Disposal of Tangible Capital Assets (13,000) (8,913) Employee Future Benefits Increase/(Decrease) 76,254 (11,627) Due from Other Organizations (Increase)/Decrease (824,501) (728,605) Accounts Receivable & Accrued Income (Increase)/Decrease 36,578 (80,430) Inventories and Prepaid Expenses (Increase)/Decrease 6,256 (12,561) Due to Other Organizations Increase/(Decrease) 134,952 60,846 Accounts Payable & Accrued Liabilities Increase/(Decrease) (482,317) (179,813) Deferred Revenue Increase/(Decrease) 828, ,342 School Generated Funds Liability Increase/(Decrease) (475) 8,869 Adjustments Other than Tangible Cap. Assets Cash Provided by (Applied to) Operating Transactions 2,650,494 3,072,536 Capital Transactions Acquisition of Tangible Capital Assets (2,969,203) (3,033,067) Proceeds on Disposal of Tangible Capital Assets 13,000 73,600 Cash Provided by (Applied to) Capital Transactions (2,956,203) (2,959,467) Investing Transactions Portfolio Investments (Increase)/Decrease Cash Provided by (Applied to) Investing Transactions Financing Transactions Borrowings from the Provincial Government Increase/(Decrease) 682,266 (151,710) Other Borrowings Increase/(Decrease) Cash Provided by (Applied to) Financing Transactions 682,266 (151,710) Cash and Bank / Overdraft (Increase)/Decrease 376,557 (38,641) Cash and Bank (Overdraft) at Beginning of Year (3,656,592) (3,617,951) Cash and Bank (Overdraft) at End of Year (3,280,035) (3,656,592) 4

13 SEINE RIVER SCHOOL DIVISION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, Nature of Organization and Economic Dependence The Seine River School Division (the Division ) is a public body that provides education services to residents within its geographic location. The division is funded mainly by grants from the Province of Manitoba (the Province ), and a special levy on the property assessment included in the Division s boundaries. The Division is exempt from income tax. The Division is economically dependent on the Province for the majority of its revenue and capital financing requirements. Without this funding, the Division would not be able to continue its operations. 2. Significant Accounting Policies The consolidated financial statements have been prepared by management in accordance with Canadian generally accepted accounting principles established by the Public Sector Accounting Board ( PSAB ) of the Chartered Professional Accountants of Canada. a) Reporting Entity and Consolidation The consolidated financial statements reflect the assets, liabilities, revenues and expenses of the operating fund, capital fund, and special purpose fund of the Division. The Division reporting entity includes school generated funds controlled by the Division. All interfund accounts and transactions are eliminated upon consolidation. b) Basis of Accounting Revenues and expenses are reported on the accrual basis of accounting except when the accruals cannot be determined with a reasonable degree of certainty or when their estimation is impracticable. The accrual basis of accounting recognizes revenues as they are earned and measurable; expenses are recognized as they are incurred and measurable as a result of the receipt of goods or services and the creation of a legal obligation to pay. Expenses also include the amortization of tangible capital assets. c) Fund Accounting The fund method of accounting is employed by the Division to record financial transactions in separate funds as defined by Financial Reporting and Accounting in Manitoba Education ( FRAME ) in accordance with the purpose for which the funds have been created. The Operating Fund is maintained to record all the day to day operating revenues and expenses. The Capital Fund is used to account for the acquisition, amortization, disposal and financing of capital assets. The Special Purpose Fund is used to account for school generated funds and charitable foundations controlled by the Division. d) School Generated Funds School generated funds are moneys raised by the school, or under the auspices of the school, through extracurricular activities for the sole use of the school that the Principal of each school, subject to the rules of the school board, may raise, hold, administer and expend for the purposes of the school. Only revenue and expenses of school generated funds controlled by the Division are included in the Consolidated Statement of Revenue, Expenses and Accumulated Surplus. To be deemed as controlled, a school must have the unilateral authority to make the decisions as to when, how and on what the funds are to be spent.

14 SEINE RIVER SCHOOL DIVISION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, Significant Accounting Policies Continued d) School Generated Funds Continued Year end cash balances of all school generated funds are included in the Consolidated Statement of Financial Position. The uncontrolled portion of this amount is reflected in the School Generated Funds Liability account. Examples of uncontrolled school generated funds are parent council funds, other parent group funds, student council funds and travel club funds. Revenues and expenses of uncontrolled school generated funds are not included in the consolidated financial statements. e) Tangible Capital Assets Tangible capital assets are nonfinancial assets that are used by the Division to provide services to the public and have an economic life beyond one fiscal year. Tangible capital assets include land, buildings, buses, other vehicles, furniture and equipment and assets under construction. To be classified as tangible capital assets, each asset other than land must individually meet the capitalization threshold for its class. Capitalization Asset Description Threshold Estimated Useful Life ($) (years) Land Improvements 25, Buildings bricks, mortar and steel 25, Buildings wood frame 25, School buses 20, Vehicles 10,000 5 Equipment 10,000 5 Network Infrastructure 25, Computer Hardware, Servers & Peripherals 5,000 4 Computer Software 10,000 4 Furniture and Fixtures 5, Leasehold Improvements 25,000 Over term of lease Grouping of assets is not permitted except for computer work stations. Tangible capital assets are initially recorded at cost, which includes purchase price, installation costs and other costs incurred to put the asset into service. All land acquired prior to June 30, 2006 has been valued by the Crown Lands and Property Agency. For buildings acquired prior to June 30, 2005 where the actual cost was not known, the replacement value for insurance purposes as at June 30, 2005 was regressed to the date of acquisition using a regression index based on Southam and CanaData construction cost indices. All tangible capital assets, except for land and assets under construction are amortized on a straightline basis over their estimated useful lives. Land is not amortized. Onehalf of the annual amortization is charged in the year of acquisition and in the year of disposal if not fully amortized. Assets under construction are not amortized until the date of substantial completion. Interest on funds used to finance school buildings under construction is capitalized for the periods preceding the date of substantial completion.

15 SEINE RIVER SCHOOL DIVISION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, Significant Accounting Policies Continued f) Employee Future Benefits The Province of Manitoba pays the employer portion of the Teachers Retirement Allowances Fund ( TRAF ), the pension plan for all certified teachers of the Division. The Division does not contribute to TRAF, and no costs relating to this plan are included in the Division s financial statements. The Division provides retirement and other future benefits to its administrative employees as a defined contribution plan, under the Manitoba School Boards Association ( MSBA ). The Division adopted the following policy with respect to accounting for these employee future benefits: Defined contribution plan Under this plan, specific fixed amounts are contributed by the Division each period for services rendered by the employees. No responsibility is assumed by the Division to make any further contribution. Defined benefit/selfinsured employee future benefit plans For those defined benefit selfinsured plans that are event driven such as nonvesting parental leave, the benefit costs are recognized only in the period when the event occurs. Nonvested sick leave benefits are estimated using a net present value technique on the expected future utilization of sick benefits in excess of the amounts earned per year, to a maximum entitlement. g) Use of Estimates The preparation of financial statements in conformity with Canadian generally accepted accounting principles established by the Public Sector Accounting Board of the Chartered Professional Accountants of Canada requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Accounts receivable are stated after evaluation as to their collectability and an appropriate allowance for doubtful accounts is provided where considered necessary. Amortization is based on the estimated useful lives of capital assets. Employee future benefits are based on estimates of future obligations to the Division. Actual results could differ from management s best estimates, as additional information becomes available in the future. h) Financial Instruments Fair values: Financial assets and financial liabilities are initially recognized at fair value and their subsequent measurement is dependent on their classification as described below. Their classification depends on the purpose for which the financial instruments were acquired or issued, their characteristics and the Division s designation of such instruments. Classification: Cash and bank and overdraft Accounts receivable Accounts payable and accrued liabilities, employee future benefits, accrued interest payable, debenture debt, and school generated funds liability Heldfortrading Loans and receivables Other financial liabilities

16 SEINE RIVER SCHOOL DIVISION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, Significant Accounting Policies Continued h) Financial Instruments Continued Held for trading: Heldfortrading financial assets and liabilities are typically acquired for resale prior to maturity or are designated as heldfortrading. They are measured at fair value at the balance sheet date. Fair value fluctuations including interest earned, interest accrued, gains and losses realized on disposal and unrealized gains and losses are included in investment income. Loans and receivables: Financial assets designated as loans and receivables are recorded at amortized cost using the effective interest method. Given the shortterm nature of accounts receivable, their carrying value approximates fair value. Other financial liabilities: Other liabilities are recorded at amortized cost using the effective interest method and include all financial liabilities. Given the shortterm nature of accounts payable and accrued liabilities, employee future benefits, accrued interest payable and school generated funds liability, their carrying value approximates fair value. The carrying value of the debenture debt also approximates their fair value as there have been no significant changes to the underlying characteristics of the parties to the agreements. Interest, currency and credit risk: It is management's opinion that the Division is not exposed to significant interest, currency or credit risk from financial instruments. The Division is exposed to some credit risk from the potential nonpayment of accounts receivable, however as the majority of the receivables are from local, provincial and federal governments, credit risk is minimal. i) Liability for Contaminated Sites A liability for remediation of a contaminated site is recognized at the best estimate of the amount required to remediate the contaminated site when contamination exceeding an environmental standard exists, the School Division is either directly responsible or accepts responsibility, it is expected that future economic benefits will be given up, and a reasonable estimate of the amount is determinable. The best estimate of the liability includes all costs directly attributable to remediation activity and is reduced by expected net recoveries based on information available at June 30, At each financial reporting date, the School Division reviews the carrying amount of the liability. Any revisions required to the amount previously recognized is accounted for in the period revisions are made. The School Division continues to recognize the liability until it is settled or otherwise extinguished. Disbursements made to settle the liability are deducted from the reported liability when they are made. j) Leases Leases are classified as capital or operating leases. A lease that transfers substantially all of the benefits and risks incidental to ownership of property are accounted for as capital leases. At the inception of a capital lease, an asset and payment obligation is recorded at an amount equal to the lesser of the present value of the minimum lease payments and the asset s fair market value. All other leases are accounted for as operating leases and the related lease payments are charged to expenses as incurred.

17 SEINE RIVER SCHOOL DIVISION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, Overdraft The Division has an authorized line of credit with Royal Bank of Canada of $7,500,000 (2017 $7,500,000) by way of overdrafts and is repayable on demand at prime less 0.75%; interest is paid monthly. Overdrafts are secured by temporary borrowing bylaws. As at June 30, 2018, the prime rate was 3.45%. The current overdraft amount includes an amount of $115,610 relating to the Energy Savings Retrofit completed in This amount will be recovered by transfers from the operating fund and can be recovered at any time. The planned annual recovery is $39,000. The annual recovery amount may change year to year based on available financing and budget and is planned to be retired in Employee Future Benefits The Division sponsors a defined contribution pension plan, run by MSBA. The defined contribution plan is provided to administrative employees based on their age at the beginning of the year and rates of pay. Each age group under the MSBA pension plan has a specific percentage for the employees to contribute. The Division contributions equal the employee contributions to the plan. No pension liability is included in the financial statements. The employee future benefit expense is a part of the Employee Benefits and Allowances expense account. It includes the Division s contribution of $477,860 in 2018 ($445,177 in 2017). Nonvested accumulating sick leave benefits are measured using net present value techniques on the expected future utilization of excess of sick leave benefits used over earned per year, to maximum entitlement. The nonvested sick leave expense for the year is $76,254 (recovery of $11,627 in 2017). 5. Deferred Revenue The deferral method of accounting is used for revenues received that, pursuant to legislation, regulation or agreement, may only be used for specific purposes. These amounts are recognized as revenue in the fiscal year the related expenses are incurred, or services performed. The following is a breakdown of the account balance: Balance as at June 30, 2017 Additions for the year Revenue recognized during year Balance as at June 30, 2018 Education Property Tax Credit ( EPTC ) $ 1,274,275 $ 2,100,256 $ 1,274,275 $ 2,100,256 Other amounts 22,575 24,921 22,575 24,921 $ 1,296,850 $ 2,125,177 $ 1,296,850 $ 2,125, Debenture Debt The debenture debt of the Division is in the form of twentyyear debentures payable, principal and interest, in twenty equal yearly installments and maturing at various dates from 2019 to Payment of principal and interest is funded entirely by grants from the Province of Manitoba, except for the debt on selffunded capital projects. The debentures carry interest rates that range from 3.375% to 7.250%. Debenture interest expense payable as at June 30, 2018, is accrued and recorded in Accrued Interest Payable, and a grant in an amount equal to the interest accrued on provincially funded debentures is recorded in Due from the Provincial Government. The debenture principal and interest repayments in the next five years are: Total 2019 $ 3,177, ,841, ,766, ,738, ,687,163 $ 14,210,817

18 SEINE RIVER SCHOOL DIVISION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, School Generated Funds Liability The cash and bank (overdraft) balance in the statement of financial position includes the noncontrolled portion of school generated funds in the amount of $50,674 ($51,149 in 2017). 8. Net Tangible Capital Assets The Schedule of Tangible Capital Assets (TCA), page 23 of the audited financial statements, provides a breakdown of cost, accumulated amortization and net book value by class. The amount of interest capitalized in the period included in Assets under Construction was $nil in 2018 ($nil in 2017). 9. Accumulated Surplus The consolidated accumulated surplus is comprised of the following: Operating Fund Designated Surplus $ 374,671 $ 368,585 Undesignated Surplus 1,348,353 1,373,305 1,723,024 1,741,890 Capital Fund Reserved Accounts $ 3,000 $ 103,592 Equity in Tangible Capital Assets 11,010,458 10,328,344 11,013,458 10,431,936 Special Purpose Fund School Generated Funds $ 270,055 $ 256,143 Total Accumulated Surplus $ 13,006,537 $ 12,429, Municipal Government Property Tax and related Due from Municipal Government Education property tax or Special Levy is raised as the Division s contribution to the cost of providing public education for the students resident in the division. The Municipal Government Property Tax shown on the consolidated revenue and expense is raised over the two calendar (tax) years; 42% from 2017 tax year and 58% from 2018 tax year. Below are the related revenue and receivable amounts: Revenue Municipal Government Property Tax $ 16,176,201 $ 14,592,037 Receivable Due from Municipal Property Tax $ 10,442,814 $ 9,606, Interest Received and Paid The Division received interest during the year of $6,462 ($1,682 in 2017). Interest paid is comprised of interest expense of $1,232,395 ($1,255,841 in 2017) as outlined below, plus capitalized interest of $nil ($nil in 2017) included in construction in progress on the consolidated statement of financial position. Interest expense is included in Fiscal and is comprised of the following: Operating Fund Fiscalshort term loan, interest and bank charges $ 60,911 $ 56,236 Capital Fund Debenture interest 1,171,484 1,199,605 Total $ 1,232,395 $ 1,255,841 The accrual portion of debenture debt interest expense of $483,974 ($511,968 in 2017) included under the Capital Fund Debenture interest, is offset by an accrual of the debt servicing grant from the Province of Manitoba.

19 SEINE RIVER SCHOOL DIVISION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, Expenses by Object Expenses in the consolidated statement of revenue, expenses and accumulated surplus are reported by function as defined by FRAME. Below is the detail of expenses by object: Actual 2018 Budget 2018 Actual 2017 Salaries $ 40,750,750 $40,299,281 $ 38,584,916 Employees benefits and allowances 2,814,166 2,845,000 2,782,472 Services 4,468,307 4,296,805 4,314,591 Supplies, materials and minor equipment 3,450,670 3,854,914 3,622,138 Interest 1,232,395 35,000 1,255,841 Payroll tax 867, , ,797 Amortization 2,311,852 2,222,140 Transfers 535, , ,853 School generated funds 656, ,095 Nonvested sick leave expense (recovery) 76,254 (11,627) $ 57,164,085 $52,571,000 $54,879, Non Financial Information The 2018 student enrolments (FRAME) and transportation statistics, full time equivalent personnel, and senior staff allocations are unaudited and have been presented for information purposes only. 14. Capital Management The Division s objective when managing capital is to ensure that its expenditures closely match their revenues. Capital consists of the various fund balances in the amount of $13,006,537 ($12,429,969 in 2017). The Division is not subject to externally imposed capital requirements. There have been no changes in the Division's approach to capital management during the year. 15. Commitments The Division has equipment lease agreements. Future annual minimum operating lease commitments as at June 30, 2018 are as follows: 16. Contingencies 2019 $ 360, , , ,725 Thereafter nil The Division s staff are subject to different collective agreements that outline the terms of their employment. As of July 1, 2017, the collective agreement for the Division s support staff expired. The Province of Manitoba has passed legislation forcing pay rate increases of 0% over the first two years of any newly negotiated collective agreements, with such legislation currently subject to legal challenges. The outcome and effect of these challenges is uncertain, and as a result, management has not provided for any retroactive pay increases for employees subject to this expired collective agreement.

20 Seine River School Division ANALYSIS OF CONSOLIDATED ACCUMULATED SURPLUS as at June 30, 2018 Operating Fund Accumulated Surplus (Deficit) 1,723,024 Equity in Tangible Capital Assets 11,010,458 Capital Reserve Accounts 3,000 School Generated Funds 270,055 Other Special Purpose Funds 0 Consolidated Accumulated Surplus 13,006,537 Operating Fund Accumulated Surplus Comprised of: Designated Surplus * Board Motion No. 077/04 Description Unexpended Amount Grounds Improvement 190,043 School Budgets 184,628 Total Designated Surplus 374,671 Undesignated Surplus (Deficit) 1,589,883 Operating Fund Accumulated Surplus (Deficit) Gross of Nonvested sick leave 1,964,554 Less: Nonvested sick leave to date 241,530 Operating Fund Accumulated Surplus (Deficit) Net of Nonvested sick leave 1,723,024 Operating Fund Accumulated Surplus as a % of Operating Expenses ** 3.7% * Includes all Boardapproved surplus designations by Board Motion or, in the case of school budget carryovers, by Board policy. ** Gross of Nonvested sick leave. 5

21 Seine River School Division OPERATING FUND SCHEDULE OF FINANCIAL POSITION as at June Financial Assets Cash and Bank Due from Provincial Government 546, ,769 Federal Government 150,436 98,067 Municipal Government 10,442,814 9,606,955 Other School Divisions 46,554 13,337 First Nations Other Funds 543,738 1,250,767 Accounts Receivable 83, ,713 Accrued Investment Income Portfolio Investments 11,812,799 11,667,608 Liabilities Overdraft 3,590,093 3,916,910 Accounts Payable 786,378 1,428,642 Accrued Liabilities 828, ,260 Employee Future Benefits 241, ,276 Accrued Interest Payable Due to Provincial Government 176, ,648 Federal Government 2,277,058 2,148,275 Municipal Government 68,786 68,334 Other School Divisions First Nations Capital Fund 3, ,592 Deferred Revenue 2,125,177 1,296,850 Other Borrowings 10,096,588 9,938,787 Net Financial Assets (Net Debt) 1,716,211 1,728,821 NonFinancial Assets Inventories Prepaid Expenses 6,813 13,069 6,813 13,069 Accumulated Surplus (Deficit) 1,723,024 1,741,890 6

22 Seine River School Division OPERATING FUND SCHEDULE OF REVENUE, EXPENSES AND ACCUMULATED SURPLUS For the Year Ended June Actual Budget Actual Revenue Provincial Government Core 37,203,531 36,906,438 36,976,183 Federal Government 20,283 15, ,864 Municipal Government Property Tax 16,176,201 16,176,562 14,592,037 Other Other School Divisions 300, , ,538 First Nations 20,687 Private Organizations and Individuals 50, ,901 Other Sources 91,023 56,000 54,592 53,862,727 53,404,000 52,198,115 Expenses Regular Instruction 30,538,397 30,544,623 28,984,408 Student Support Services 8,850,554 9,092,700 8,512,089 Adult Learning Centres 313, ,175 Community Education and Services 484, , ,060 Divisional Administration 1,658,620 1,763,500 1,691,192 Instructional and Other Support Services 1,780,626 1,526,356 1,673,868 Transportation of Pupils 3,406,005 3,308,897 3,171,465 Operations and Maintenance 4,987,203 5,130,500 5,071,713 Fiscal 928, , ,033 52,948,140 52,571,000 50,747,003 Current Year Surplus (Deficit) before Nonvested Sick Leave 914, ,000 1,451,112 Less: Nonvested Sick Leave Expense (Recovery) 76,254 (11,627) Current Year Surplus (Deficit) after Nonvested Sick Leave 838, ,000 1,462,739 Net Transfers from (to) Capital Fund (857,199) (833,000) (1,376,388) Transfers from Special Purpose Funds Net Current Year Surplus (Deficit) (18,866) 0 86,351 Opening Accumulated Surplus (Deficit) 1,741,890 1,655,539 Adjustments: Liabilty for Contaminated Sites Nonvested sick leave prior years Opening Accumulated Surplus (Deficit), as adjusted 1,741,890 1,655,539 Closing Accumulated Surplus (Deficit) 1,723,024 1,741,890 7

23 Seine River School Division OPERATING FUND REVENUE DETAIL PROVINCE OF MANITOBA For the Year Ended June 30, 2018 Funding of Schools Program Base Support Instructional Support 8,061,990 Additional Instructional Support for Small Schools Sparsity 452,380 Curricular Materials 269,370 Information Technology 259,389 Library Services 384,900 Student Services 1,373,640 Counselling and Guidance 347,247 Professional Development 163,164 Physical Education 75,750 Occupancy 1,710,000 13,097,830 Categorical Support Transportation 1,820,324 Board and Room Special Needs: Coordinator/Clinician 401,636 Special Needs: Level 2 1,183,700 Special Needs: Level 3 813,505 Senior Years Technology Education 164,891 English as an Additional Language 179,350 Aboriginal Academic Achievement (including BSSAP) 396,000 Aboriginal and International Languages French Language Education 352,947 Small Schools 7,143 Enrolment Change Support 6,523 Northern Allowance Early Childhood Development Initiative 64,424 Literacy and Numeracy 334,696 Education for Sustainable Development 10,500 5,735,639 Equalization 9,622,272 Additional Equalization Adjustment for Days Closed Formula Guarantee Other Program Support School Buildings Support: "D" Projects 120,180 Technology Education Equipment Replacement 28,600 Skills Strategy Equipment Enhancement 31,993 Other Minor Capital Support Prior Year Support Finalization of Previous Year Support Curricular Materials School Buildings Support: "D" Projects Technology Education Equipment 180,773 28,636,514 8

24 Seine River School Division OPERATING FUND REVENUE DETAIL PROVINCE OF MANITOBA (CONT'D) For the Year Ended June 30, 2018 Other Department of Education and Training NonResident Special Needs Institutional Programs Nursing Supports (URIS) 6,317 Substitute Fees General Support Grant 813,057 Education Property Tax Credit 4,998,106 Tax Incentive Grant 1,851,693 Early Years Enhancement Grant 425,813 Community Schools Healthy Schools Initiative 13,982 Learning to Age 18 Coordinator 20,000 Adult Learning Centres 313,715 Other: Career Development 43,875 Marking 6,845 French Revitilization 31,000 Green Team 21,115 8,545,518 Other Provincial Government Departments (Not including GBE's) Employment Programs Other: Healthy Child 9,499 Lighthouse 12,000 21,499 Funding of Schools Program (previous page) 28,636,514 TOTAL PROVINCIAL GOVERNMENT REVENUE 37,203,531 9

25 Seine River School Division OPERATING FUND REVENUE DETAIL NONPROVINCIAL GOVERNMENT SOURCES For the Year Ended June 30, 2018 Federal Government Tuition Fees Transportation of Pupils French Language Monitor 20,283 English as an Additional Language (Adults) Other: 20,283 Municipal Government Special Requirement 23,026,000 Less: Education Property Tax Credit (4,998,106) Less: Tax Incentive Grant (1,851,693) 16,176,201 Other: 16,176,201 Other School Divisions Tuition Fees Transfer Fees 88,479 Residual Fees 211,641 Transportation of Pupils Other: First Nations Tuition Fees 20,687 Transportation of Pupils Other: 300,120 Private Organizations and Individuals (Includes GBE's) Regular Tuition International Tuition Continuing Education Other Tuition: Food Service Government Business Enterprises (GBE's) Other: Car PlugIns Daycare Rent 15,836 35,046 20,687 Other Sources Interest 6,462 Donations 33,075 Other: Dividens & Insurance Rebates 51,486 50,882 91,023 TOTAL NONPROVINCIAL GOVERNMENT REVENUE 16,659,196 10

26 Seine River School Division OPERATING FUND EXPENSE BY FUNCTION AND BY OBJECT For the Year Ended June 30 FUNCTION Instructional Student Adult Education and Other Operations Regular Support Learning and Divisional Support Transportation and OBJECT Instruction Services Centres Services Administration Services of Pupils Maintenance Fiscal TOTALS TOTALS Salaries 25,841,810 8,010, , ,808 1,048,960 1,219,245 1,935,303 2,056,764 40,750,750 38,584,916 Employees Benefits and Allowances 1,367, ,369 13,851 33, , , , ,270 2,814,166 2,782,472 Services 1,043, ,208 44,372 37, , , ,933 2,196,178 4,468,307 4,314,591 Supplies, Materials and Minor Equipment 1,837,830 38,257 4,371 26,954 63,297 68, , ,991 3,450,670 3,622,138 Interest and Bank Charges 60,911 60,911 56, Bad Debt Expense 0 0 (PAYROLL TAX) Transfers 448,053 49,981 37, ,735 1,403,336 1,386,650 TOTALS 30,538,397 8,850, , ,374 1,658,620 1,780,626 3,406,005 4,987, ,646 52,948,140 50,747,003

27 Seine River School Division OPERATING FUND EXPENSE DETAIL: FUNCTION 100 For the Year Ended June 30, SINGLE TRACK SCHOOLS * REGULAR INSTRUCTION SENIOR YEARS ENGLISH FRENCH DUAL TRACK TECHNOLOGY CODE OBJECT \ PROGRAM ADMINISTRATION LANGUAGE FRANÇAIS IMMERSION SCHOOLS ** EDUCATION TOTALS 3XX SALARIES 320 Executive, Managerial and Supervisory 2,474,234 2,474, Instructional Teaching 11,215,720 3,878,125 6,821,551 21,915, Instructional Other 69,939 33,701 67, , Technical, Specialized and Service 160,817 53,753 57, , Secretarial, Clerical and Other 726, , Information Technology 282, ,189 Total Salaries 3,483,245 11,446, ,965,579 6,946, ,841,810 4XX EMPLOYEES BENEFITS AND ALLOWANCES 235, , , ,663 1,367,081 56XX SERVICES 510 Professional, Technical and Specialized 10,787 11,062 3,372 25, Communications 166,926 1, , Travel and Meetings 8,095 15,603 2,611 17,315 43, Tuition Printing and Binding Insurance and Bond Premiums Maintenance and Repair Services 29,210 6,031 20,844 56, Rentals 13,095 2,702 19,213 35, Advertising 47,037 1,361 48, Dues and Fees 251 6, ,321 36, Professional and Staff Development 1,322 1, Information Technology Services 534,626 70,458 11,285 11, ,837 Total Services 758, , , , ,043,623 7XX SUPPLIES, MATERIALS AND MINOR EQUIPMENT 710 Supplies 19, ,366 84, , , Curricular and Media Materials 184,913 92,133 82, , Minor Equipment 50, ,724 41, , , Information Technology Equipment 52, ,956 70, , ,483 Total Supplies, Materials and Minor Equipment 122, , , , ,837,830 96X99 TRANSFERS 960 School Divisions 356,200 65,573 26, , Organizations and Individuals 0 Total Transfers 0 356,200 65, , ,053 TOTALS 4,599,637 13,390,355 65,573 4,493,268 7,963,284 26,280 30,538,397 * 90% or more of enrolment is in one of the following instructional programs: English Language, Français, French Immersion. ** includes multitrack schools. 12

28 Seine River School Division OPERATING FUND EXPENSE DETAIL: FUNCTION 200 For the Year Ended June 30, STUDENT SUPPORT SERVICES CLINICAL AND ADMINISTRATION RELATED SPECIAL REGULAR RESOURCE COUNSELLING CODE OBJECT \ PROGRAM /COORDINATION SERVICES PLACEMENT PLACEMENT SERVICES AND GUIDANCE TOTALS 3XX SALARIES 320 Executive, Managerial and Supervisory 138, , Instructional Teaching 98, ,829 1,765,014 1,021,551 3,532, Instructional Other 2,925, ,322 3,218, Technical, Specialized and Service 28,450 28, Secretarial, Clerical and Other 50,430 50, Clinician 635, ,548 1,042, Information Technology 0 Total Salaries 287, , ,573,671 2,057,336 1,456,549 8,010,739 4XX EMPLOYEES BENEFITS AND ALLOWANCES 21,126 30, , ,756 71, ,369 56XX SERVICES 510 Professional, Technical and Specialized 11,378 20, ,221 46, Communications 1,205 8,613 2,224 12, Travel and Meetings 5,686 11,895 11, ,065 39, Tuition Printing and Binding Insurance and Bond Premiums Maintenance and Repair Services Rentals 3,145 3, Advertising Dues and Fees 2, , Professional and Staff Development 6, ,114 8, Information Technology Services ,809 13,772 Total Services 16,465 32, , , ,208 7XX SUPPLIES, MATERIALS AND MINOR EQUIPMENT 710 Supplies 281 2,176 4, , Curricular and Media Materials 401 1,005 1,644 3, Minor Equipment 1,269 17,779 19, Information Technology Equipment 28 9,195 9,223 Total Supplies, Materials and Minor Equipment 710 4, , ,257 96X99 TRANSFERS 960 School Divisions Organizations and Individuals 49,981 49,981 Total Transfers , ,981 TOTALS 326, ,307 49,981 4,036,606 2,179,067 1,555,576 8,850,554 13

29 Seine River School Division OPERATING FUND EXPENSE DETAIL: FUNCTION 300 For the Year Ended June 30, ADULT LEARNING CENTRES ADMINISTRATION CODE OBJECT \ PROGRAM AND OTHER INSTRUCTION TOTALS 3XX SALARIES 320 Executive, Managerial and Supervisory 35,760 35, Instructional Teaching 186, , Instructional Other Technical, Specialized and Service 3,058 3, Secretarial, Clerical and Other 26,002 26, Information Technology 0 Total Salaries 64, , ,121 4XX EMPLOYEES BENEFITS AND ALLOWANCES 5,838 8,013 13,851 56XX SERVICES 510 Professional, Technical and Specialized 7,133 7, Communications 4,997 4, Utility Services 3,543 3, Travel and Meetings Tuition Printing and Binding Insurance and Bond Premiums Maintenance and Repair Services 2,471 2, Rentals 21,946 21, Property Taxes Advertising 1,584 1, Dues and Fees Professional and Staff Development Information Technology Services 1, ,315 Total Services 43, ,372 7XX SUPPLIES, MATERIALS AND MINOR EQUIPMENT 710 Supplies 1,702 1,052 2, Curricular and Media Materials 1,311 1, Minor Equipment Information Technology Equipment 0 Total Supplies, Materials and Minor Equipment 1,702 2,669 4,371 96X99 TRANSFERS 960 School Divisions Organizations and Individuals Recharge 0 Total Transfers TOTALS 115, , ,715 14

30 Seine River School Division OPERATING FUND EXPENSE DETAIL: FUNCTION 400 For the Year Ended June 30, 2018 COMMUNITY EDUCATION AND SERVICES ENGLISH AS AN COMMUNITY CONTINUING ADDITIONAL LANGUAGE SERVICES AND PREKINDERGARTEN CODE OBJECT \ PROGRAM EDUCATION FOR ADULTS RECREATION EDUCATION TOTALS 3XX SALARIES 320 Executive, Managerial and Supervisory Instructional Teaching 1,396 1, Instructional Other 336, , Technical, Specialized and Service 49,231 49, Secretarial, Clerical and Other Clinician Information Technology 0 Total Salaries , ,808 4XX EMPLOYEES BENEFITS AND ALLOWANCES 33,052 33,052 56XX SERVICES 510 Professional, Technical and Specialized 30,890 30, Communications Travel and Meetings 4,120 4, Printing and Binding Insurance and Bond Premiums Maintenance and Repair Services Rentals Advertising Dues and Fees Professional and Staff Development 2,141 2, Information Technology Services 0 Total Services ,560 37,560 7XX SUPPLIES, MATERIALS AND MINOR EQUIPMENT 710 Supplies 13,011 13, Curricular and Media Materials 12,438 12, Minor Equipment 1,505 1, Information Technology Equipment 0 Total Supplies, Materials and Minor Equipment ,954 26,954 96X99 TRANSFERS 980 Organizations and Individuals Recharge 0 Total Transfers TOTALS , ,374 15

31 Seine River School Division OPERATING FUND EXPENSE DETAIL: FUNCTION 500 For the Year Ended June 30, 2018 DIVISIONAL ADMINISTRATION INSTRUCTIONAL BUSINESS AND MANAGEMENT BOARD OF MANAGEMENT & ADMINISTRATIVE INFORMATION CODE OBJECT \ PROGRAM TRUSTEES ADMINISTRATION SERVICES SERVICES TOTALS 3XX SALARIES 310 Trustees Remuneration 104, , Executive, Managerial and Supervisory 264, ,769 78, , Technical, Specialized and Service 86,335 86, Secretarial, Clerical and Other 50, , , Information Technology 0 Total Salaries 104, , ,293 78,835 1,048,960 4XX EMPLOYEES BENEFITS AND ALLOWANCES 1,689 22,967 94,319 16, ,136 56XX SERVICES 510 Professional, Technical and Specialized 5,137 34,949 36,181 76, Communications 927 1,816 26, , Travel and Meetings 10,642 10,159 4,110 1,652 26, Printing and Binding Insurance and Bond Premiums 47,216 47, Maintenance and Repair Services 7,391 7, Rentals Advertising , Dues and Fees 58,423 5,021 6,343 69, Professional and Staff Development 15,095 7,035 5,582 27, Information Technology Services 4,440 1,912 3, , ,847 Total Services 94,933 61, , , ,227 7XX SUPPLIES, MATERIALS AND MINOR EQUIPMENT 710 Supplies 797 3,449 13,661 17, Curricular and Media Materials 103 1,210 1, Minor Equipment ,531 13, Information Technology Equipment 329 1,823 28,545 30,697 Total Supplies, Materials and Minor Equipment 797 4,730 16,694 41,076 63,297 96X99 TRANSFERS 960 School Divisions Organizations and Individuals Recharge 0 Total Transfers TOTALS 201, , , ,095 1,658,620 16

32 Seine River School Division OPERATING FUND EXPENSE DETAIL: FUNCTION 600 For the Year Ended June 30, 2018 INSTRUCTIONAL AND OTHER SUPPORT SERVICES CURRICULUM CONSULTING & CURRICULUM LIBRARY / PROFESSIONAL DEVELOPMENT CONSULTING & MEDIA AND STAFF CODE OBJECT \ PROGRAM ADMINISTRATION DEVELOPMENT CENTRE DEVELOPMENT OTHER TOTALS 3XX SALARIES 320 Executive, Managerial and Supervisory 35,020 35, Instructional Teaching 486, , , Instructional Other 422,283 15, , Technical, Specialized and Service 4,753 32,278 37, Secretarial, Clerical and Other 25,638 25, Information Technology 0 Total Salaries 60, , , ,156 32,278 1,219,245 4XX EMPLOYEES BENEFITS AND ALLOWANCES 5,246 19,626 71,429 10,497 2, ,899 56XX SERVICES 510 Professional, Technical and Specialized 42,744 42, Communications 2,100 2, Travel and Meetings 7,392 11,855 19, Tuition Printing and Binding Insurance and Bond Premiums 3,446 3, Maintenance and Repair Services Rentals Advertising Dues and Fees Professional and Staff Development 3, ,326 1, , Information Technology Services Total Services 0 12, ,326 59, ,206 7XX SUPPLIES, MATERIALS AND MINOR EQUIPMENT 710 Supplies 766 4,433 21,278 26, Curricular and Media Materials 1,423 14, , Minor Equipment 357 2,835 3, Information Technology Equipment 22,935 22,935 Total Supplies, Materials and Minor Equipment 0 2,546 44, ,368 68,709 96X99 TRANSFERS 960 School Divisions Organizations and Individuals 37,567 37,567 Total Transfers 37,567 37,567 TOTALS 65, , , , ,177 1,780,626 17

33 Seine River School Division OPERATING FUND EXPENSE DETAIL: FUNCTION 700 For the Year Ended June 30, 2018 TRANSPORTATION OF PUPILS ALLOWANCES BOARDING OF FIELD TRIPS IN LIEU OF STUDENTS/ AND CODE OBJECT \ PROGRAM ADMINISTRATION REGULAR TRANSPORTATION DORMITORIES OTHER TOTALS 3XX SALARIES 320 Executive, Managerial and Supervisory 85,335 85, Instructional Other Technical, Specialized and Service 1,699,080 54,273 1,753, Secretarial, Clerical and Other 96,615 96, Information Technology 0 Total Salaries 181,950 1,699, ,273 1,935,303 4XX EMPLOYEES BENEFITS AND ALLOWANCES 27, , ,508 56XX SERVICES 510 Professional, Technical and Specialized 52,733 52, Communications 6,467 5,918 12, Travel and Meetings 6,161 1,572 7, Transportation of Pupils 242 5,567 5, Printing and Binding Insurance and Bond Premiums 63,277 63, Maintenance and Repair Services ,047 62, Rentals Advertising Dues and Fees Professional and Staff Development 1,089 7,043 8, Information Technology Services 10,397 40,094 50,491 Total Services 26, , , ,933 7XX SUPPLIES, MATERIALS AND MINOR EQUIPMENT 710 Supplies 2, ,299 34, , Curricular and Media Materials Minor Equipment 7,189 20,484 27, Information Technology Equipment 1,535 4,088 5,623 Total Supplies, Materials and Minor Equipment 11, , , ,261 96X99 TRANSFERS 960 School Divisions Organizations and Individuals Recharge 0 Total Transfers TOTALS 246,881 3,064, ,017 3,406,005 18

34 Seine River School Division OPERATING FUND EXPENSE DETAIL: FUNCTION 800 For the Year Ended June 30, SCHOOL OPERATIONS AND MAINTENANCE SCHOOL BUILDINGS BUILDINGS REPAIRS AND OTHER CODE OBJECT \ PROGRAM ADMINISTRATION MAINTENANCE REPLACEMENTS BUILDINGS GROUNDS TOTALS 3XX SALARIES 320 Executive, Managerial and Supervisory 86,335 86, Technical, Specialized and Service 1,911,313 21,490 17,779 1,950, Secretarial, Clerical and Other 19,847 19, Information Technology 0 Total Salaries 86,335 1,931, ,490 17,779 2,056,764 4XX EMPLOYEES BENEFITS AND ALLOWANCES 14, ,280 2, ,270 56XX SERVICES 510 Professional, Technical and Specialized 19,570 9,307 28, Communications 2,629 5,754 8, Utility Services 675,360 41, , Travel and Meetings 9,204 6,569 15, Printing and Binding Insurance and Bond Premiums 210, , Maintenance and Repair Services , ,763 16, ,878 1,045, Rentals Property Taxes 113,962 35, , Advertising Dues and Fees , Professional and Staff Development 622 4,098 4, Information Technology Services 8,602 6,580 15,182 Total Services 21,587 1,512, ,070 92, ,878 2,196,178 7XX SUPPLIES, MATERIALS AND MINOR EQUIPMENT 710 Supplies ,768 86,484 6,677 10, , Curricular and Media Materials Minor Equipment ,400 2,501 15,558 52, Information Technology Equipment 942 1,342 2,284 Total Supplies, Materials and Minor Equipment 1, ,510 86,484 9,178 26, ,991 96X99 TRANSFERS 999 Recharge 0 TOTALS 123,868 4,036, , , ,947 4,987,203 19