Calgary Sep School Dist (2014-08-31) FS corp notes

Financial Statements

Calgary Roman Catholic Separate School District No. 1 August 31, 2014

A member firm of Ernst & Young Global Limited

AUDITORS' REPORT

To the Board of Trustees of Calgary Roman Catholic Separate School District No. 1 We have audited the accompanying financial statements of Calgary Roman Catholic Separate School District No. 1, which comprise the statement of financial position as at August 31, 2014, and the statement of operations, change in net debt, and cash flows 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. 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 auditors consider 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 in our audit 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 Calgary Roman Catholic Separate School District No. 1 as at August 31, 2014, and the results of its operations, changes in net debt, and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Calgary, Canada November 26, 2014 Chartered Accountants


Calgary Roman Catholic Separate School District No. 1

As at August 31 August 31

2014 2013$ $

FINANCIAL ASSETSCash and cash equivalents [notes 3 and 5] 47,714,343 53,717,010Accounts receivable [note 4] 20,421,357 20,474,778Other financial assets 45,400 115,685Total financial assets 68,181,100 74,307,473

LIABILITIESAccounts payable and accrued liabilities [notes 5 and 6] 40,571,008 38,527,794Unexpended deferred operating revenue [note 7] 6,414,748 4,742,347Unexpended deferred capital revenue [note 8] 48,999 3,656,037Expended deferred capital revenue [note 9] 359,594,067 367,245,499Employee future benefit liabilities [note 10] 5,986,210 5,891,956Long-term debt [note 11] 732,786 1,008,399Total liabilities 413,347,818 421,072,032

NET DEBT (345,166,718) (346,764,559)

NON-FINANCIAL ASSETSTangible capital assets, net [note 12] 392,138,941 399,849,892Prepaid expenses 2,373,822 2,200,322Other non-financial assets 456,749 611,396Total non-financial assets 394,969,512 402,661,610

ACCUMULATED SURPLUS [note 13] 49,802,794 55,897,051

Commitments and contingencies [notes 14 and 15]

See accompanying notes

On behalf of the Board:

Trustee Trustee

STATEMENT OF FINANCIAL POSITION



Year ended August 31

2014 2014 2013Budget Actual Actual

$ $ $

[Note 25]

REVENUEAlberta Education 503,377,701 425,174,126 415,025,372 Property taxes — 82,263,338 83,849,565 Other - Government of Alberta 1,236,858 556,443 435,911 Federal Government and First Nations 957,555 1,248,442 963,963 Other Alberta school authorities — 68,112 88,155 Student fees [note 20] 13,137,596 13,812,804 11,884,438 Other sales and service 3,803,060 4,126,398 3,998,970 Investment income 701,523 904,257 965,857 Gifts and donations 2,938,379 2,839,599 3,105,272 Rental of facilities 2,129,300 2,217,539 2,123,020 Fundraising 3,016,396 2,991,990 2,820,226 Gain (loss) on disposal of capital assets 25,000 51,350 (27,427) Other revenue 497,250 106,163 4,855

531,820,618 536,360,561 525,238,177

EXPENSES [notes 11, 16, 17 and 18]

Schools and instruction 410,274,534 413,873,260 397,895,753 Board, administration and instructional support 47,049,307 46,207,029 46,176,439 Plant operations and maintenance 68,215,803 67,814,692 66,255,741 Transportation 14,470,294 14,559,837 13,271,893

540,009,938 542,454,818 523,599,826

OPERATING SURPLUS (DEFICIT) (8,189,320) (6,094,257) 1,638,351


STATEMENT OF OPERATIONS




2014 2013$ $

OPERATING ACTIVITIESOperating surplus (deficit) (6,094,257) 1,638,351Add (deduct) items not affecting cash

Amortization expense 20,317,786 20,463,839Loss (gain) on disposal of tangible capital assets (51,350) 27,427Expended deferred capital revenue recognition (16,678,209) (16,939,501) Donations in kind (174,223) (184,597)

Net change in non-cash operating activities [note 19] 7,045,308 8,199,980Cash provided by operating activities 4,365,055 13,205,499

CAPITAL ACTIVITIESAdditions to capital assets (12,026,767) (9,692,349) Proceeds from disposal of capital assets 79,517 29,263Net change in non-cash capital activities [note 19] 1,579,528 75,190Cash used in capital activities (10,367,722) (9,587,896)

Net increase (decrease) in cash and cash equivalents during the year (6,002,667) 3,617,603 Cash and cash equivalents, beginning of year 53,717,010 50,099,407Cash and cash equivalents, end of year 47,714,343 53,717,010


STATEMENT OF CASH FLOWS




2014 2014 2013Budget Actual Actual

$ $ $

[Note 25]

CHANGE IN NET DEBT

Operating surplus (deficit) (8,189,320) (6,094,257) 1,638,351

Acquisition of tangible capital assets — (12,635,002) (10,476,851)

Amortization of tangible capital assets — 20,317,786 20,463,839

Carrying value of tangible capital asset disposals — 28,167 57,434

Acquisition of prepaid expenses — (173,500) (13,619)

Use of other non-financial assets — 154,647 49,375

Total increase in net debt (8,189,320) 1,597,841 11,718,529

NET DEBT, BEGINNING OF YEAR (346,764,559) (346,764,559) (358,483,088) NET DEBT, END OF YEAR (354,953,879) (345,166,718) (346,764,559)


STATEMENT OF CHANGE IN NET DEBT



Year Ended August 31

Accumulated surplus

Investment in tangible capital

assetsUnrestricted

surplus

Total operating reserves

Total capital reserves

$ $ $ $ $

[Note 13] [Note 13]

Balance, August 31, 2013 55,897,051 32,604,394 6,423,978 7,015,178 9,853,501

Operating surplus (deficit) (6,094,257) — (6,094,257) — — Board funded tangible capital asset additions — 3,608,224 (475,532) (1,389,344) (1,743,348) Disposal of unsupported tangible capital assets — (28,167) (51,350) — 79,517 Amortization of Board funded tangible capital assets — (3,639,577) 3,639,577 — — Transfers to operating reserves — — (4,008,864) 4,008,864 — Transfers from operating reserves — — 3,615,189 (3,615,189) — Balance, August 31, 2014 49,802,794 32,544,874 3,048,741 6,019,509 8,189,670

SCHEDULE OF CHANGES IN ACCUMULATED SURPLUS




NOTES TO FINANCIAL STATEMENTS

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1. AUTHORITY AND PURPOSE Calgary Roman Catholic Separate School District No. 1 [the "District"] was established under the authority of the School Act, Revised Statutes of Alberta, Chapter S-3, to provide education programs to The City of Calgary and surrounding areas. The District receives instruction and support allocations under the Education Grants Regulation 120/2008 from the Government of Alberta and by way of municipal property taxes. The regulation allows for the setting of conditions and use of grant monies. The District is limited on certain funding allocations and administration expenditures. The District is registered as a charitable organization under the Income Tax Act (Canada) and, therefore, is exempt from income taxes. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The financial statements of the District have been prepared by management in accordance with Canadian Public Sector Accounting Standards ['PSAS'] without not-for-profit provisions, Section PS 4200 of the Chartered Professional Accountants ["CPA"] Canada Public Sector Accounting Handbook. The significant accounting policies are summarized below. Reporting entity The financial statements include all of the assets, liabilities, revenues and expenses of the District. Funds generated at the schools are included as assets, liabilities, revenues and expenses of the District when the accountability, control and ownership of these funds rest with the District and are under the control of the school. Funds are raised through non-instructional fees and fundraising activities. Measurement uncertainty The preparation of financial statements in conformity with PSAS requires management to make estimates and assumptions that impact reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Estimates are reviewed periodically by management and, as adjustments become necessary, they are reported in the period in which they




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became known. Measurement uncertainty that may be material to these financial statements exists for the liability for employee future benefits because actual experience may differ significantly from actuarial estimations and for the useful lives of tangible capital assets and related amortization because the estimate of useful life is based on management assumptions. Actual results could differ from these estimates. Trust funds Trust funds held for other organizations and administered by the District are not included in the financial statements [note 22]. Financial assets Financial assets are assets that could be used to discharge existing liabilities or to finance future operations and are not for consumption in the normal course of operations. [i] 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. [ii] Accounts receivable Accounts receivable includes education property taxes receivable, provincial grants receivable, federal goods and services tax rebates and other receivables. Other receivables are recorded at cost less valuation allowances. These allowances are recorded where collectability is considered doubtful. [iii] Other financial assets Inventory held for resale is carried at the lower of cost, determined on a first-in, first-out basis, and net realizable value. This inventory consists of laptop computers for the purpose of selling them to students in order to allow the students to complete their studies under the laptop program. The payment terms of the sale agreements are between one and three years. Laptop computers expected to be sold within the next fiscal year are classified as other financial assets and those expected to be sold after the next fiscal year have been classified as other non-financial assets.




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Non-financial assets Non-financial assets generally are assets held for consumption in the provision of services. These assets do not normally provide resources to discharge the liabilities of the District. [i] Tangible capital assets Tangible capital assets have useful lives extending beyond the accounting period, are held for use by the District and are not intended for sale in the ordinary course of operations. Tangible capital assets acquired or constructed are recorded at cost and include all costs directly attributable to the acquisition, design, construction, development, installation and betterment of the tangible capital asset. The costs of the depreciable tangible capital assets are amortized on a straight-line basis over their estimated useful lives as follows:

Buildings 10 to 40 years Furniture and equipment 5 to 10 years Computer software and hardware 5 years Vehicles 5 to 10 years Site development 20 years Leasehold improvements Lease term

Work in progress is not depreciated as these assets are not available for use. Once completed and available for use, these assets are depreciated in accordance with the District's accounting policy. Donated tangible capital assets are recorded at their fair market value at the date of donation when reasonably determinable; otherwise they are recognized at nominal value. Transfers of tangible capital assets from related parties are recorded at original cost less accumulated amortization. [ii] Prepaid expenses Prepaid expenses are amounts paid for goods and services which will provide economic benefits in one or more future periods. [iii] Other non-financial assets Inventory of supplies is carried at the lower of cost, determined on a first-in, first-out basis, and replacement cost.




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Non-financial assets also include inventory of laptop computers for the purpose of selling them to students where they are expected to be sold after the next fiscal year. They are carried at the lower of cost, determined on a first-in, first-out basis, and net realizable value. Liabilities Liabilities are obligations arising from transactions and events occurring prior to the financial statement date. [i] Accounts payable and accrued liabilities Accounts payable and accrued liabilities include amounts owing to third parties and employees for work performed, goods supplied and services rendered, but not yet paid, at the financial statement date. Amounts are generally payable within one year. [ii] Unexpended deferred operating revenue Unexpended deferred operating revenue includes contributions received with stipulations that meet the definition of a liability, other than unexpended deferred capital revenue as described below. Unexpended deferred operating revenue is recognized as revenue when the stipulations are met. [iii] Unexpended deferred capital revenue Unexpended deferred capital revenue represent externally restricted funds received or receivable by the District for the purpose of acquiring or developing a depreciable tangible capital asset, but the related expenditure has not been made by the financial statement date. These contributions are recorded by the District once it has met all eligibility criteria to receive the contributions. These contributions must also have stipulations that meet the definition of a liability when expended. When expended, this deferred revenue is transferred to expended deferred capital revenue. [iv] Expended deferred capital revenue Expended deferred capital revenue represent contributions received or receivable containing stipulations that meet the definition of a liability, for the purpose of acquiring depreciable tangible capital assets. It consists of contributions which are transferred from unexpended deferred capital revenue when expended. The expended deferred capital revenue account balance is also increased by debenture debt, originally incurred for the purpose of acquiring capital assets, the payment of which is made by the Government of Alberta on behalf of the District. Where the Government of Alberta has entered into contracts (private-public partnerships) for the design, build, and finance of schools and modular classrooms on behalf of the District, expended deferred capital revenue is




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recorded in the amount of the estimated fair value of these assets transferred to the District. Expended deferred capital revenue is amortized to revenue on the same basis as the depreciation on the tangible capital assets acquired. [v] Employee future benefit liabilities Employee future benefit liabilities represent retirement and post-employment benefits that accrue to the District's employees. The cost of these benefits is recorded in the reporting period the benefits are earned by employees. Employee future benefit liabilities include the non-registered Supplemental Executive Retirement Program ["SERP"] and retirement allowances. SERP is a defined benefit pension plan supplemental to the Local Authorities Pension Plan [LAPP] or the Alberta Teachers' Retirement Fund [ATRF], as appropriate, for which the District is responsible for the entire cost. The District and certain members of senior administration participate in this plan. This is an unfunded pension arrangement with no assets. It is not a registered pension plan and not subject to pension regulations. SERP enhances the LAPP/ATRF benefits formula to a full 2% final average earnings pension plan which provides for the portion of the accrued pension that is in excess of the Income Tax Act (Canada) maximum for each participant. The liability relating to SERP is actuarially determined using the projected accrued benefit cost method pro-rata on service and management's best estimate of expected inflation, salary escalation, termination and retirement rates and mortality. The discount rate used to measure obligations is based on the cost of borrowing. Actuarial gains and losses are amortized on a straight line basis over the expected average remaining service life of the related employee groups. Actuarial valuations are performed periodically. An actuary extrapolates these valuations when a valuation is not done in the current fiscal year. Retirement allowances relate to employees who are members of the Canadian Union of Public Employees, Unifor, and exempt employees. The allowance is based on years of service and salary. The liability relating to retirement allowances is actuarially determined using the accrued benefit actuarial cost method and is based on management's best estimate of salary escalation, termination and retirement rates and mortality. The discount rate used to measure obligations is based on the cost of borrowing. Actuarial gains and losses are amortized on a straight line basis over the expected average remaining service life of the related employee groups. Actuarial valuations are performed periodically. An actuary extrapolates these valuations when a valuation is not done in the current fiscal year.




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Employee future benefit liabilities also include post-employment benefit continuation and retirement allowances for certain members of senior administration. These benefits have not been actuarially determined. They have been accounted for using current benefit rates and estimated retirement ages. Revenue recognition Revenues are recorded on an accrual basis, which recognizes revenues as they are earned and measurable. [i] Government transfers Revenue recognition of government transfers is dependent upon the terms of the transfer, namely, eligibility criteria and stipulations. Eligibility criteria are criteria that the District has to meet in order to receive the contributions from a transferring government. Stipulations describe how the District must use the contributions or the actions it 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. Contributions with eligibility criteria but without stipulations are recognized as revenue when the contributions are authorized by the transferring government and all eligibility criteria have been met. [ii] Property taxes Property taxes are levied and collected on a calendar year basis. The education property tax mill rate is set by the Government of Alberta. The District has elected, by way of Board resolution, to directly requisition tax revenues from the properties of separate school supporters. Tax revenues are recognized on the basis of time with 1/12th of the total tax revenue assessed recorded monthly. [iii] Restricted revenues Contributions with or without eligibility criteria but with stipulations are recognized as revenue in the period the contributions are authorized and all eligibility criteria have been met, except when and to the extent that the contributions give rise to an obligation that meets the definition of a liability. Liabilities are recorded as unexpended deferred operating revenue, unexpended deferred capital revenue or expended deferred capital revenue depending on the terms and conditions of the contributions.




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Funds received other than government transfers, such as donations and fees that are externally restricted are recognized as revenue in the period in which the funds are used for the purpose specified. Externally restricted funds received before this criterion has been met is reported as unexpended deferred operating revenue, unexpended deferred capital revenue or expended deferred capital revenue depending on the terms and conditions of the funds, provided it meets the definition of a liability. [iv] Donated tangible capital assets Donated tangible capital assets are recognized as revenue when received or receivable, except when the donated tangible capital assets give rise to an obligation that meets the definition of a liability in which case it is recorded as expended deferred capital revenue and recognized into revenue as the restrictions have been met. Donated tangible capital assets are recorded at fair market value when reasonably determinable. [v] Donated materials and services Donated materials are recognized as revenue when received or receivable. Donated materials are recorded at fair market value when reasonably determinable, when they are used in the normal course of the District's operations and when they would otherwise have been purchased. Volunteers assist schools operated by the District in carrying out certain activities. Because of the difficulty in determining the fair value of the services and the fact that such assistance is generally not otherwise purchased, the value of contributed services is not recognized in the financial statements. Multi-employer defined benefit pension plans The District and its staff participate in several multi-employer defined benefit pension plans. Multi-employer defined pension plans are accounted for as a defined contribution plan whereby the District's contributions for current and past service pension benefits required for participating staff during the year are recorded as an expense; the net pension assets or liabilities of the plan are not recognized in the financial statements. The District's certificated staff is required to participate in the Alberta Teachers' Retirement Fund. The current service and past service costs of the Alberta Teachers' Retirement Fund are shared equally by active members and the Government of Alberta. Active members are solely responsible for the additional 10% cost-of-living pension adjustment provision. Under the terms of the Teachers' Pension Plans Act, the District does not make pension contributions for certificated staff. The contributions by the Government of Alberta for the District's certificated staff are recorded as an increase in expense and an increase in Government of Alberta revenue. An




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actuarial valuation of the plan is performed annually. Funding deficiencies under the plan are amortized by additional contributions from active members and the Government of Alberta over a fifteen year period. However, funding deficiencies relating to the additional 10% cost-of-living pension adjustment provision is amortized by additional contributions from active members only. The District and its non-certificated staff participate in the multi-employer Local Authorities Pension Plan. Members and employers make contributions to the pension plan. Contributions are shared between the members and employers with employers paying 1% more. An actuarial valuation of the plan is performed annually. Funding deficiencies under the plan are amortized by additional contributions from members and employers over a fifteen year period. The District and certain members of senior administration participate in a multi-employer registered Supplemental Integrated Pension Plan ["SIPP"]. This plan is supplemental to the Local Authorities Pension Plan or the Alberta Teachers' Retirement Fund, as appropriate. Employers are solely responsible for contributions to the pension plan. An actuarial valuation of the plan is performed every three years. Funding deficiencies under the plan are amortized by additional contributions over a fifteen year period. Financial instruments Financial instruments are any contracts that give rise to financial assets of one entity and financial liabilities of another entity. Because they represent contractual arrangements, they do not include government transfers. The District's financial instruments recognized in the statement of financial position consist of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities and long-term debt. All financial instruments are recorded at cost or amortized cost and the associated transaction costs are added to the carrying value upon initial recognition. The gain or loss arising from derecognition of a financial instrument and impairment losses such as write-downs are reported in the Statement of Operations. Expenses Expenses are reported on an accrual basis. Expenses are recognized in the period that the events giving rise to the expense occurs and there is a legal or constructive obligation to pay.




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3. CASH AND CASH EQUIVALENTS Cash equivalents are investments that have original maturity dates of 90 days or less. The term deposits bear interest at 1.37% to 1.44%. August 31 August 31 2014 2013 $ $ Cash 2,989,818 1,972,149 Term deposits 44,724,525 51,744,861 47,714,343 53,717,010




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4. ACCOUNTS RECEIVABLE August 31, 2014

Total

receivables

Allowance for doubtful accounts Net receivables

$ $ $ Municipalities - property taxes 13,901,368 — 13,901,368 Government of Alberta and other related

parties 3,692,186 — 3,692,186 Federal Government 595,260 — 595,260 Other 2,340,793 (108,250) 2,232,543 Total 20,529,607 (108,250) 20,421,357 August 31, 2013

Total

receivables

Allowance for doubtful accounts Net receivables

$ $ $ Municipalities - property taxes 13,388,130 — 13,388,130 Government of Alberta and other related

parties 4,330,950 — 4,330,950 Federal Government 666,447 — 666,447 Other 2,168,605 (79,354) 2,089,251

Total 20,554,132 (79,354) 20,474,778




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5. CREDIT FACILITIES The District has a $17,000,000 revolving bank credit facility comprised of a demand credit facility with interest at bank prime less 0.25% and standby letters of credit to a maximum of $300,000 with fees at 0.30% per annum. A borrowing resolution to a maximum of the District's accounts receivable as per the most recent audited financial statements, covering all revenue of the District, has been provided as collateral for this facility. At August 31, 2014, letters of credit totalling $106,000 were outstanding and no amount of the demand credit facility was outstanding. The District has a purchasing card facility in the amount of $2,000,000 of which $244,346 was outstanding at August 31, 2014 and included in accounts payable and accrued liabilities. 6. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES August 31 August 31 2014 2013 $ $

Government of Alberta and other related parties 16,147,332 15,630,152 Federal Government 508,500 531,044 Alberta Municipalities 52,515 462,704 Salaries and benefits payable 11,532,964 9,078,905 Other trade payables and accrued liabilities 12,329,697 12,824,989

40,571,008 38,527,794




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7. UNEXPENDED DEFERRED OPERATING REVENUE

Balance as at August 31,

2013

Restricted Funds

Received/ Receivable

Revenue recognized in

the year

Adjustments or returned

funds


2014 $ $ $ $ $ Alberta Education

Alberta Initiative for School Improvement 70,840 — (63,649) — 7,191

Infrastructure Maintenance Renewal 198,776 5,925,609 (6,124,385) — —

Full Day Kindergarten Pilot — 2,800,000 — — 2,800,000

CTS Bridging Teacher Certificate 117,911 — (117,911) — —

Collaborative Online Resource Environment 107,456 — (107,456) — —

Other Alberta Education 44,953 — (30,633) — 14,320

Other Government of Alberta University of Alberta -

Cross Curricular Engagement Project 50,000 20,000 (70,000) — —

Justice and Solicitor General - Start Smart Stay Safe program 6,748 124,530 (131,278) — —

Other Government of Alberta — 189,955 (96,325) — 93,630

Other School Generated Funds

fees [note 21] 2,138,275 9,179,055 (9,450,062) — 1,867,268 Student fees 1,096,977 2,947,201 (3,357,282) — 686,896 Donations 306,621 482,297 (523,550) — 265,368 Lease revenue 173,510 — (16,791) — 156,719 Other 430,280 612,968 (519,892) — 523,356

Total 4,742,347 22,281,615 (20,609,214) — 6,414,748




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2012

Restricted Funds


Revenue recognized in

the year


funds


2013 $ $ $ $ $ Alberta Education

Alberta Initiative for School Improvement 357,782 1,943,684 (2,230,626) — 70,840

Infrastructure Maintenance Renewal — 7,381,529 (7,182,753) — 198,776

Student Health Initiative 42,652 1,418,466 (1,461,118) — — CTS Bridging Teacher

Certificate 291,262 — (173,351) — 117,911 Collaborative Online

Resource Environment 112,500 — (5,044) — 107,456 Other Alberta Education 135,783 — (90,830) — 44,953

Other Government of Alberta University of Alberta -

Cross Curricular Engagement Project 75,000 52,000 (77,000) — 50,000

Justice and Solicitor General - Start Smart Stay Safe program 22,062 115,813 (131,127) — 6,748

Other School Generated Funds

fees 1,182,621 8,604,957 (7,649,303) — 2,138,275 Student fees 1,090,581 4,241,531 (4,235,135) — 1,096,977 Donations 475,281 520,848 (664,508) (25,000) 306,621 Lease revenue 190,301 — (16,791) — 173,510 Other 538,433 496,619 (604,772) — 430,280

Total 4,514,258 24,775,447 (24,522,358) (25,000) 4,742,347




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8. UNEXPENDED DEFERRED CAPITAL REVENUE


2013

Restricted Funds


Transferred to expended

deferred capital revenue


funds


2014 $ $ $ $ $ Government of Alberta

capital transfers 2,936,111 4,993,144 (7,929,255) — — Interest earned on capital

transfers 282,756 (4,707) (278,049) — — Other 437,170 (2,710) (385,461) — 48,999 Total 3,656,037 4,985,727 (8,592,765) — 48,999


2012

Restricted Funds


Transferred to expended

deferred capital revenue


funds



capital transfers 3,173,669 5,107,746 (5,271,680) (73,624) 2,936,111 Interest earned on capital

transfers 2,281,676 43,992 (2,042,912) — 282,756 Other 427,101 10,069 — — 437,170 Total 5,882,446 5,161,807 (7,314,592) (73,624) 3,656,037




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9. EXPENDED DEFERRED CAPITAL REVENUE


2013

Transferred from

unexpended deferred capital revenue

Transferred in - tangible capital assets

Capital revenue

recognized



capital transfers 367,245,499 8,592,765 434,012 (16,678,209) 359,594,067 Total 367,245,499 8,592,765 434,012 (16,678,209) 359,594,067


2012

Transferred from

unexpended deferred capital revenue

Transferred in - tangible capital assets

Capital revenue

recognized


2013

$ $ $ $ $ Government of Alberta

capital transfers 376,270,503 7,314,592 599,905 (16,939,501) 367,245,499 Total 376,270,503 7,314,592 599,905 (16,939,501) 367,245,499




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10. EMPLOYEE FUTURE BENEFITS Employee future benefits consist of the following: August 31 August 31 2014 2013 $ $

Retirement allowances [i] 4,743,400 4,600,600 Defined benefit pension plan liability [ii] 300,600 246,300 Executive retirement allowances [iii] 750,210 815,056 Post-employment benefits [iii] 192,000 230,000 Total 5,986,210 5,891,956 [i] Retirement allowances The actuarial valuation of the plan was performed as of August 31, 2013 and the benefit obligations have been extrapolated to August 31, 2014 based on a revised discount rate. Benefit plan obligations are as follows: August 31 August 31 2014 2013 $ $ Accrued benefit obligation, beginning of year 4,600,600 4,351,800 Current service cost 336,500 307,300 Interest cost 227,000 205,400 Benefit payments (459,900) (271,300) Amortization of experience gains 39,200 7,400 Accrued benefit obligation, end of year 4,743,400 4,600,600 There are no defined benefit plan assets.




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Reconciliation of the funded status of the benefit plans to the amounts recorded in the financial statements is as follows: August 31 August 31 2014 2013 $ $

Pension obligation 4,374,200 4,984,700 Plan deficit 4,374,200 4,984,700 Unamortized experience gains (losses) 369,200 (384,100) Accrued benefit obligation 4,743,400 4,600,600

The significant actuarial assumptions used in measuring the District's accrued benefit obligation are as follows: August 31 August 31

2014 2013

Discount rate 5.90% 4.60%

Rate of compensation increase 0% from 2012-

2015, 1% in 2016, 2.5% thereafter

0% from 2012-2015, 1% in 2016,

2.5% thereafter




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[ii] Defined benefit pension plan liability The District participates in a non-registered Supplemental Executive Retirement Program [refer to note 2] which is a defined benefit plan for certain members of senior administration. The actuarial valuation of the plan was performed as of August 31, 2014. Defined benefit plan obligations are as follows: August 31 August 31 2014 2013

$ $

Accrued benefit obligation, beginning of year 246,300 180,400 Current service cost 50,500 56,600 Interest cost 10,500 10,000 Amortization of experience gains (6,700) (700) Accrued benefit obligation, end of year 300,600 246,300

There are no defined benefit plan assets. Reconciliation of the funded status of the benefit plans to the amounts recorded in the financial statements is as follows: August 31 August 31 2014 2013 $ $

Pension obligation 171,700 187,200 Plan deficit 171,700 187,200 Unamortized experience gains 128,900 59,100 Accrued benefit obligation 300,600 246,300




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The significant actuarial assumptions used in measuring the District's accrued benefit obligation are as follows: August 31 August 31 2014 2013 $ $ Discount rate 6.15% 4.95% Rate of compensation increase 3.50% 3.50% [iii] Other employee future benefits These include retirement allowances for certain members of senior administration and post-employment benefit continuation for all members of senior administration. 11. LONG-TERM DEBT Long-term debt is comprised of debentures issued to the Alberta Capital Finance Authority at interest rates ranging from 7.875% to 10.125% per annum which mature at various dates to 2020. All debenture principal and interest payments are fully supported [funded] by the Government of Alberta. Principal and interest payments required over each of the next five years and thereafter are as follows: Principal

$ Interest

$ Total

$

2015 221,307 70,922 292,229 2016 221,307 49,383 270,690 2017 221,307 27,845 249,152 2018 47,598 6,306 53,904 2019 16,067 1,961 18,028 2020 5,200 494 5,694 Total 732,786 156,911 889,697 Interest on long-term debt incurred for 2014 was $82,167 [2013 - $109,532].




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12. TANGIBLE CAPITAL ASSETS August 31, 2014

Land Work In Progress Buildings

Site development

Furniture and

Equipment

Computer Software and

Hardware Vehicles Total $ $ $ $ $ $ $ $ Historical cost Beginning of year 6,069,298 8,046,792 567,819,696 42,488,368 21,672,014 12,869,264 2,057,648 661,023,080 Additions — 11,469,004 — — 747,868 272,824 145,306 12,635,002 Transfers to (from) — (17,027,807) 15,782,962 652,949 436,633 155,263 — — Disposals — — — (41,765) (987,342) — (75,126) (1,104,233) 6,069,298 2,487,989 583,602,658 43,099,552 21,869,173 13,297,351 2,127,828 672,553,849 Accumulated amortization Beginning of year — — 223,280,916 18,237,585 11,125,477 7,093,160 1,436,050 261,173,188 Amortization for the year — — 14,426,143 1,906,415 2,220,536 1,622,835 141,857 20,317,786 Disposals — — — (34,591) (987,342) — (54,133) (1,076,066) — — 237,707,059 20,109,409 12,358,671 8,715,995 1,523,774 280,414,908 Net book value, end of year 6,069,298 2,487,989 345,895,599 22,990,143 9,510,502 4,581,356 604,054 392,138,941





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August 31, 2013

Land Work In Progress Buildings

Site development

Furniture and

Equipment

Computer Software and

Hardware Vehicles Total $ $ $ $ $ $ $ $ Historical cost Beginning of year 6,069,298 1,261,333 567,619,069 41,793,597 22,754,921 11,718,073 2,051,475 653,267,766 Additions — 9,387,155 — — 401,310 576,835 111,551 10,476,851 Transfers to (from) — (2,601,696) 283,647 694,771 473,580 1,149,698 — — Disposals — — (83,020) — (1,957,797) (575,342) (105,378) (2,721,537) 6,069,298 8,046,792 567,819,696 42,488,368 21,672,014 12,869,264 2,057,648 661,023,080 Accumulated amortization Beginning of year — — 208,798,355 16,357,155 10,778,478 6,089,220 1,350,244 243,373,452 Amortization for the year — — 14,565,581 1,880,430 2,266,763 1,559,882 191,183 20,463,839 Disposals — — (83,020) — (1,919,764) (555,942) (105,377) (2,664,103) — — 223,280,916 18,237,585 11,125,477 7,093,160 1,436,050 261,173,188 Net book value, end of year 6,069,298 8,046,792 344,538,780 24,250,783 10,546,537 5,776,104 621,598 399,849,892





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The Government of Alberta has entered into contracts (public-private partnerships) for the design, build, finance, and maintenance of schools and modular classrooms on behalf of the District. The cost of the schools, modular classrooms and the related site development incurred in 2014 was $434,012 [2013 - $599,905]. These contributed assets have been transferred to the District at their estimated fair value as determined by the Government of Alberta based upon the competitively bid contract to construct these assets. Capital assets in the amount of $174,223 were donated in kind to the District in 2014 [2013 - $184,597]. Contributed capital assets in 2014 and 2013 include playground equipment. 13. ACCUMULATED SURPLUS Accumulated surplus represents the financial assets and non-financial assets of the District less liabilities. It consists of the accumulated balance of the operating surplus (deficit) arising from the operations of the District. Certain amounts of the Accumulated surplus as established at the discretion of the Board of Trustees of the District, or externally, have been designated for future operating and capital expenditures. These internally restricted amounts, which are the operating and capital reserves, are not available for use without approval of the Board of Trustees.




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The Schedule of Changes in Accumulated Surplus provides detailed information on the changes in accumulated surplus. The following provides detailed information on the changes in reserves: 2014

Balance, beginning

of year Appropriated Utilized

Balance, end of year

$ $ $ $ Operating reserves School and instruction 3,897,955 4,008,864 (2,898,856) 5,007,963 Plant operations & maintenance 928,822 — (648,140) 280,682 Board and system administration 715,896 — (715,896) — Transportation 1,472,505 — (741,641) 730,864 7,015,178 4,008,864 (5,004,533) 6,019,509 Capital reserves School and instruction 195,807 35,693 — 231,500 Plant operations & maintenance — 43,824 — 43,824 Board and system administration 9,657,694 — (1,743,348) 7,914,346 9,853,501 79,517 (1,743,348) 8,189,670

Total reserves 16,868,679 4,088,381 (6,747,881) 14,209,179 2013

Balance, beginning

of year Appropriated Utilized

Balance, end of year

$ $ $ $ Operating reserves School and instruction 2,081,410 2,943,052 (1,126,507) 3,897,955 Plant operations & maintenance 928,822 — — 928,822 Board and system administration 715,896 — — 715,896 Transportation 745,815 726,690 — 1,472,505 4,471,943 3,669,742 (1,126,507) 7,015,178 Capital reserves School and instruction 166,544 29,263 — 195,807 Board and system administration 11,724,525 — (2,066,831) 9,657,694 11,891,069 29,263 (2,066,831) 9,853,501

Total reserves 16,363,012 3,699,005 (3,193,338) 16,868,679




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14. CONTRACTUAL OBLIGATIONS The District has entered into contracts for the delivery of services and construction of assets. These contractual obligations will become liabilities in the future when the terms of the contracts are met. Disclosure relates to the unperformed portion of the contracts.

2014

$ 2013

$ Building projects 7,139,680 7,152,017 Service providers 8,790,024 11,065,323 Total contractual obligations 15,929,704 18,217,340

Building Projects

Service Providers

$ $ 2014-15 6,687,092 3,190,803 2015-16 452,588 2,612,638 2016-17 — 2,262,169 2017-18 — 724,414 2018-19 — — 7,139,680 8,790,024 Building projects include the District's obligation for the addition and modernization of Notre Dame High School, new schools in Evanston, Auburn Bay, Aspen Woods, Cranston, and New Brighton areas, as well as modernizations at St. Vincent de Paul and St. Cyril. Building projects also include the District’s obligation for Infrastructure Maintenance Renewal projects. It is anticipated that these costs will be fully funded by Alberta Education. Service providers include the District's obligation to purchase minimum volumes of electricity at a fixed price and the District’s cell phone contracts.




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15. CONTINGENT LIABILITIES The District may, from time to time, be involved in legal proceedings, claims and litigation that arise in the ordinary course of business. In the event that any such claims or litigation are resolved against the District, management does not anticipate any material impact from such outcomes or resolutions on the business, financial condition, or results of operations of the District at the present time. The District is a member of The Urban Schools Insurance Consortium ["USIC"], a licensed reciprocal insurance exchange under Alberta's Insurance Act, which facilitates the placement of property and liability insurance coverage for fourteen jurisdictions throughout the province of Alberta. Member contributions pay for premiums on insurance policies and self-insure a portion of each member's risk exposure. Also premium rebates are received by the reciprocal from the insurer's favourable claims experience. Each member could become liable for its proportionate share of any claim losses in excess of the funds held by the reciprocal. The District's share of the accumulated USIC funds as at August 31, 2014 was $656,167 [2013 - $480,666]. This amount has not been recognized in the District's financial statements as the accumulated funds are payable only upon membership termination or dissolution of the reciprocal. 16. EXPENSES BY OBJECT August 31 August 31 2014 2013 $ $

Certificated salaries 280,343,211 272,919,493 Certificated benefits 65,009,693 57,761,666 Non-certificated salaries and wages 70,939,594 70,154,165 Non-certificated benefits 17,703,090 17,381,050 Services, contracts and supplies 87,235,032 84,174,067 Amortization of capital assets 20,317,786 20,463,839 Interest and charges [note 11] 386,605 374,152 Other expense 519,807 371,394 Total expenses 542,454,818 523,599,826




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17. PENSION PLANS Multi-Employer defined Benefit Plans [i] The District's certificated staff participates in the Alberta Teachers' Retirement Fund [refer to note 2]. The expense for this defined benefit pension plan is equivalent to the annual contributions by the Government of Alberta of $34,011,660 for the year ended August 31, 2014 [2013 - $28,403,384]. At August 31, 2013, the Alberta Teachers' Retirement Fund reported a deficit of $825,590,000 [2012 - deficit of $1,909,313,000]. [ii] The District participates in the multi-employer Local Authorities Pension Plan [refer to note 2] for non-certificated staff. The expense for this defined benefit pension plan is equivalent to the annual contributions of $7,359,113 for the year ended August 31, 2014 [2013 - $6,730,546]. At December 31, 2013, the Local Authorities Pension Plan reported a deficit of $4,861,516,000 [2012 - deficit of $4,977,303,000]. [iii] The District participates in a multi-employer registered Supplemental Integrated Pension Plan [refer to note 2] for certain members of senior administration. The expense for this plan is equivalent to the annual contributions of $51,479 for the year ended August 31, 2014 [2013 - $40,200]. As at December 31, 2011, the most recent actuarial valuation, the SIPP reported a surplus of $3,800 [2008 – surplus of $8,873]. 18. SALARIES AND BENEFITS 2014 2013

Number

Salaries, wages and

accrued vacation

Benefits and

allowances Total Total $ $ $ $ Chair 1.0 26,754 18,415 45,169 44,809 Other Board members 6.0 132,591 93,156 225,747 219,643 Superintendent 1.0 242,261 95,619 337,880 275,887 Secretary-Treasurer 1.0 172,144 52,077 224,221 244,682 Certificated 3,154.0 280,100,950 64,914,074 345,015,024 330,405,272 Non-certificated 1,505.9 70,608,105 17,539,442 88,147,547 87,026,081 4,668.9 351,282,805 82,712,783 433,995,588 418,216,374




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19. STATEMENT OF CASH FLOWS Net change in non-cash assets and liabilities August 31 August 31 2014 2013 $ $ Accounts receivable (222,192) 604,201 Other financial assets 70,285 70,167 Accounts payable and accrued liabilities 463,686 1,898,092 Unexpended deferred operating revenue 1,672,401 228,089 Unexpended deferred capital revenue (3,607,038) (2,226,409)Expended deferred capital revenue 8,592,765 7,315,336 Employee future benefits payable 94,254 274,748 Prepaid expenses (173,500) (13,619)Other non-financial assets 154,647 49,375 Total net change in non-cash operating activities 7,045,308 8,199,980 Accounts payable and accrued liabilities 1,579,528 75,190 Total net change in non-cash capital activities 1,579,528 75,190 20. STUDENT FEES August 31 August 31 2014 2013 $ $ Transportation 1,109,856 1,153,491 Instructional supplies and materials 3,252,885 3,081,644 Activity 3,255,418 2,350,260 Extracurricular 3,072,488 2,709,043 Lunchroom supervision 1,951,551 1,853,946 General 1,170,606 736,054 Total 13,812,804 11,884,438




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21. SCHOOL GENERATED FUNDS

August 31 August 31 2014 2013 $ $

Unexpended school generated revenue, beginning of year 3,677,000 2,701,427 Gross receipts:

Fees 9,179,055 8,604,957 Fundraising 2,806,379 2,679,860 Gifts and donations 1,296,405 1,421,182 Grants to schools 194,549 50,335 Other sales and services 2,718,547 2,459,952

Total gross receipts 16,194,935 15,216,286 Total related expenses and uses of funds 12,247,918 10,664,071 Total direct costs including cost of goods sold to raise funds 3,654,806 3,576,642 Unexpended school generated revenues, end of year 3,969,211 3,677,000 Balance included in unexpended deferred operating revenue

[note 7] 1,960,898 2,138,275 Balance included in accumulated surplus 2,008,313 1,538,725 3,969,211 3,677,000

22. TRUSTS UNDER ADMINISTRATION

These amounts, which are not recorded in the financial statements, represent assets held in trust by the District. August 31 August 31 2014 2013 $ $

Student Health Initiative (Banker board) — 62,659 Regional Collaborative Service Delivery (Banker board) 346,627 108,000 Total 346,627 170,659




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23. RELATED PARTY TRANSACTIONS All entities that are consolidated in the accounts of the Government of Alberta are related parties of school jurisdictions. These include government departments, health authorities, post-secondary institutions, other school jurisdictions, crown corporations, government agencies, regulated funds, government commercial enterprises, offices of the legislative assembly and government organizations in Alberta. Related party transactions are recorded at the exchange amount, which is the amount of consideration established and agreed upon between the related parties. Amounts due to or from and the amounts of transactions with related parties are recorded in the financial statements and are as follows: Balances Transactions

Financial Assets

(at cost or net realizable

value)

Liabilities (at amortized

cost) Revenues Expenses $ $ $ $ Government of Alberta (GOA): Education Accounts receivable / Accounts payable 2,779,160 14,078,104 — — Prepaid expenses / Deferred revenue — 2,821,510 — — Unexpended deferred capital revenue — 48,999 — — Expended deferred capital revenue — 359,021,896 — — Grant revenue & expenses — — 425,058,396 — Other revenues & expenses — — 115,730 2,304,647 Other Alberta school jurisdictions 4,912 1,351,023 68,112 1,798,610 Treasury Board and Finance

(Principal) 732,786 — — — Treasury Board and Finance (Accrued

interest) 39,700 — 82,167 — Treasury Board and Finance - other — 6,508 — 15,551 Alberta Health Services 557 118,183 188 378,390 Post-secondary institutions — 1,582 198,397 128,191 Alberta Justice 64,274 — 131,738 291 Human Services — 572,171 31,899 — Culture 71,055 92,357 61,984 — Other GOA ministries — 1,020 — 4,818 Other: Alberta Local Authorities Pension Plan — 509,507 — 7,359,113




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Balances Transactions

Financial Assets

(at cost or net realizable

value)

Liabilities (at amortized

cost) Revenues Expenses $ $ $ $

Corp. Alberta Capital Finance Authority — 772,485 — 82,167 Urban School Insurance Consortium — — 20,000 — Alberta Foundation for the Arts — 117 40,947 — Calgary and Area Child and Family

Services — 41,961 7,944 — Other Related Parties — — 1,180 677 TOTAL 2013/2014 3,692,444 379,437,423 425,818,682 12,072,455 TOTAL 2012/2013 4,577,203 388,144,888 415,669,438 12,879,044

The District's principal and interest payments on long-term debt in the amount of $275,613 [2013 - $296,388] and $82,167 [2013 - $109,532], respectively, are paid by the Government of Alberta [refer to note 11]. Debenture principal payments are recorded as a decrease in long-term debt and decrease in accounts receivable. Interest payments are recorded as an increase in Government of Alberta revenue and increase in interest on long-term debt expense. Maintenance costs totalling $1,211,194 [2013 - $1,219,869] related to the four schools constructed under the Public-Private Partnership agreement are paid by the Government of Alberta and are recorded as an increase in revenue from the Government of Alberta and increase in plant operations and maintenance expense. The District's primary source of revenue is from the Government of Alberta. The District's ability to continue its operations is dependent on this funding.




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24. RISK MANAGEMENT It is management's opinion that the District is not exposed to significant currency, interest rate, market, credit or liquidity risks arising from its financial instruments. The District's financial risk exposure is as follows: [a] Currency risk As the District has cash and accounts payable denominated in U.S. dollars, it is exposed to currency risk. As at August 31, 2014, cash and accounts payable in U.S. dollars totaled $69,699 and $40,883, respectively. [b] Interest rate risk Investments are not exposed to significant interest rate risk due to their short-term maturity. The District is not exposed to interest rate risk on long-term debt as it is fully funded by the Government of Alberta. Other financial assets and financial liabilities do not comprise any interest rate risk since they do not bear interest. [c] Market risk The District restricts the type of investments to include banker acceptances, guaranteed investment certificates, bearer deposit notes and term deposits issued by the five major banks: Royal Bank, Canadian Imperial Bank of Commerce, Toronto Dominion Canada Trust, Bank of Montreal and Bank of Nova Scotia. Also, the District may invest to the maximum insurable amount with a financial institution who is a member of the Canadian Deposit Insurance Corporation, and may invest with a financial institution where the principal and interest is 100% guaranteed by the Credit Union Deposit Guarantee Corporation under the Alberta Credit Union Act, or where the principal and interest is 100% guaranteed by the Government of Alberta. The maximum term allowed for an investment is 365 days. [d] Credit risk Receivables comprise amounts receivable from the City of Calgary and the Government of Alberta totaling $16,507,504 [81%] which mitigates the credit risk. The remaining receivables are subject to normal trade credit risk which is not significant as the District manages and analyzes the outstanding accounts receivable balances.




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[e] Liquidity risk The District manages its liquidity risk by maintaining sufficient cash and cash equivalents and securing an operating line of credit [refer to note 5]. The District ensures that it operates within its budget and has reserves and an unrestricted operating surplus. 25. BUDGET AMOUNTS The budget was prepared by the District and approved by the Board of Trustees on May 29, 2013. The following is reconciliation between the revenues and expenditures reported in the approved budget and that reported in the Statement of Operations due to reclassification of certain revenues and expenditures for financial reporting purposes: Revenue

Original budget

Reallocation of Government of

Alberta Reallocation of amortization

Revised budget

$ $ $ $ Alberta Education — 486,535,876 16,841,825 503,377,701 Other - Government of Alberta 487,740,816 (486,535,876) 31,918 1,236,858 Federal Government and First

Nations 957,555 — — 957,555 Other Alberta school authorities — — — — Out of province authorities — — — — Alberta Municipalities - special

tax levies — — — — Property taxes — — — — Fees 13,137,596 — — 13,137,596 Other sales and services 3,803,060 — — 3,803,060 Investment income 701,523 — — 701,523 Gifts and donations 2,938,379 — — 2,938,379 Rental of facilities 2,129,300 — — 2,129,300 Fundraising 3,016,396 — — 3,016,396 Gains (losses) on disposal of

capital assets 25,000 — — 25,000 Amortization of capital

contributions 16,873,743 — (16,873,743) — Other revenue 497,250 — — 497,250 Total Revenues 531,820,618 — — 531,820,618




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Expenses Original

budget Reallocation of

depreciation Reallocation of

debt interest Revised budget

$ $ $ $ Instruction 408,726,426 1,548,108 — 410,274,534 Plant operations and maintenance 50,373,396 17,760,240 82,167 68,215,803 Transportation 14,468,969 1,325 — 14,470,294 Board, administration and

instructional support 46,018,164 1,031,143 — 47,049,307 Debt Interest 82,167 — (82,167) — Depreciation 20,340,816 (20,340,816) — — Total expenses 540,009,938 — — 540,009,938 26. COMPARATIVE FIGURES Certain 2013 figures have been reclassified to conform to the 2014 presentation.


Documents

Calgary Sep School Dist (2014-08-31) FS corp notes