AUDITED FINANCIAL STATEMENTS · 1175plk1 AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31,...

1175plk1

AUDITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED AUGUST 31, 2018 [School Act, Sections 147(2)(a), 148, 151(1) and 276]

Pembina Hills Regional Division No. 7

Legal Name of School Jurisdiction

531 O - 49 Street Barrhead AB T7N 1 P3

Mailing Address

School Jurisdiction Code: 1175

(780)67 4-8500 (780)67 4-3262 [email protected]

Contact Numbers and Email Address

SCHOOL JURISDICTION MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING

The financial statements of Pembina Hills Regional Division No. 7 presented to Alberta Education have been prepared by school jurisdiction management which has responsibility for their preparation, integrity and objectivity. The financial statements, including notes, have been prepared in accordance with Canadian Public Sector Accounting Standards and follow format prescribed by Alberta Education.

In fulfilling its reporting responsibilities, management has maintained internal control systems and procedures designed to provide reasonable assurance that the school jurisdiction's assets are safeguarded, that transactions are executed in accordance with appropriate authorization and that accounting records may be relied upon to properly reflect the school jurisdiction's transactions. The effectiveness of the control systems is supported by the selection and training of qualified personnel, an organizational structure that provides an appropriate division of responsibility and a strong system of budgetary control.

Board of Trustees Responsibility The ultimate responsibility tor the financial statements lies with the Board of Trustees. The Board reviewed the audited financial statements with management in detail and approved the financial statements tor release.

External Auditors The Board appoints external auditors to audit the financial statements and meets with the auditors to review their findings. The external auditors were given full access to school jurisdiction records.

Declaration of Management and Board Chair To the best of our knowledge and belief, these financial statements reflect, in all material respects, the financial position, results of operations, remeasurement gains and losses, changes in net financial assets (debt), and cash flows tor the year in accordance with Canadian Public Sector Accounting Standards.

Jennifer Tuininga Name

David Garbutt Name

BOARD CHAIR

SUPERINTENDENT

SECRETARY-TREASURER OR TREASURER

Tracy Meunier Name

November 28, 2018 Board-approved Release Date

c.c. ALBERTA EDUCATION, Financial Reporting & Accountability Branch 8th Floor Commerce Place, 10155-102 Street, Edmonton AB T5J 4L5 EMAIL: [email protected] PHONE: Ash: (780) 415-8940; Robert: (780) 427-3855 FAX: (780) 422-6996

Version 20181015

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TABLE OF CONTENTS

Page

INDEPENDENT AUDITOR’S REPORT 3

STATEMENT OF FINANCIAL POSITION 4

STATEMENT OF OPERATIONS 5

STATEMENT OF CASH FLOWS 6

STATEMENT OF CHANGE IN NET FINANCIAL ASSETS (NET DEBT) 7

STATEMENT OF REMEASUREMENT GAINS AND LOSSES 8

Schedule 1 : SCHEDULE OF CHANGES IN ACCUMULATED SURPLUS 9

Schedule 2: SCHEDULE OF CAPITAL REVENUE ii

Schedule 3: SCHEDULE OF PROGRAM OPERATIONS 12

Schedule 4: SCHEDULE OF PLANT OPERATIONS AND MAINTENANCE EXPENSES 13

Schedule 5: SCHEDULE OF CASH, CASH EQUIVALENTS, AND PORTFOLIO INVESTMENTS 14

Schedule 6: SCHEDULE OF CAPITAL ASSETS 15

Schedule 7: SCHEDULE OF REMUNERATION AND MONETARY INCENTIVES 16

Schedule 8: UNAUDITED SCHEDULE OF FEES 17

Schedule 9: UNAUDITED SCHEDULE OF DIFFERENTIAL FUNDING 18

Schedule 10: UNAUDITED SCHEDULE OF CENTRAL ADMINISTRATION EXPENSES 19

Schedule 11: UNAUDITED SCHEDULE OF NUTRITION PROGRAM EXPENDITURES 20

NOTES TO THE FINANCIAL STATEMENTS 21

2

Soemae’,CHARTERED ACCOUNTANTS

John S. Shoemaker Professional Corporation

Tina J Viney Professional Corporation 4 TImothy 1. Frlesen Professional Corporation

-

INDEPENDENTAUDITOR’SREPORT

To the Trustees of Pembina Hills Regional School Division #7

We have auUted the accompanying financial statements of Pembina Hills Regional School Divi&on #7, whichcomprise the balance sheet as at August 31 , 201 8 and the statements of income, retained earnings and cash flowfor the year then ended, and a summary of significant accounting policies and other explanatory information.

Managements Responsibility for the Financiat Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance withCanadian Public Sector Accounting Standards, and for such internal control as management determines isnecessary to enable the preparation of financial statements that are free from material misstatement, whether due tofraud or error.

Auditors Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our auditin accordance with Canadian generally accepted auditing standards. Those standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.

An audit invotves performing procedures to obtain audit evidence about the amounts and disclosures in the financialstatements. The procedures selected depend on the auditor’s judgment including the assessment of the risks ofmaterial misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,the auditor considers internal control relevant to the entity’s preparation and fair presentation 01 the financialstatements in order to design audit procedures that are appropriate in the circumstances. but not for the purpose ofexpressing an opinion on the effectiveness of the entity’s Internal controL An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of accounting estimates made bymanagement, as well as evaluating the overall presentation ot the financial statements.

We believe that the audit evidence we have obtained Is sufficient and appropriate to provide a basis for our auditopinion,

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of Pembina HillsRegional School Division #7 as at August 31 , 2018 and the results of its operations and its cash flow for the yearthen ended in accordance with Canadian Public Sector Accounting Standards

Westlock, AlbertaNovember 28, 2018 CHARTERED A’COUNTANTS

10020 106 Street, Westlock, AS TIP 21(4Telephone: (780) 349’3355 • EUm. Direct: (780) 4214796 • Fax: (780) 3494550 • Emall: svtsv1ca.com


STATEMENT OF FINANCIAL POSITIONAs at August 31 , 201 8 (in dollars)

FINANCIAL ASSETS

Cash and cash equivalents (Schedule 5; Note 3) $ 5,986551 $ 6,392,044

Accounts receivable (net after allowances) (Note 4) $ 3,460,469 $ 3,093,652

Portfolio investments (Schedule 5) $ - $ -

Other financial assets $ - $ -

Total financial assets $ 9,447,020 $ 9,485,696

LIABILITIES

Bank indebtedness (Note 5) $ - $ -

Accounts payable and accrued liabilities (Note 6) $ 1,317,625 $ 989,959

Deferred revenue (Note 7) $ 29,240,413 $ 30,321,140

Employee future benefits liabilities $ - $ -

Liability for contaminated sites $ - $ -

Other liabilities $ - $ -

Debt

Supported: Debentures and other supported debt (Note 8) $ - $ 51,027

Unsupported: Debentures and capital loans $ - $ -

Mortgages ______________________ $ - $ -

Capital leases $ - $ -

Total liabilities $ 30,558,038 $ 31,362,126

Netdebt $ (21,111,018) $ (21,876,430)

NON-FINANCIAL ASSETS

Tangible capital assets (Schedule 6)

Land $ 512,834 $ 512,834

Construction in progress $ - $ -

Buildings $ 63,574,095

Less: Accumulated amortization $ (34,991 571) $ 28,582,525 $ 29,829,269

Equipment $ 364,816

Less: Accumulated amortization $ (324,846) $ 39,970 $ 18,397

Vehicles $ 9,256,254

Less: Accumulatedamortizabon $ (5,912,346) $ 3,343,908 $ 3,171,606

Computer Equipment $ 264,099

Less: Accumulated amorbzaUon $ (225,171) $ 38,928 $ 38,163

Total tangible capital assets $ 32,518,165 $ 33,570,269

Prepaid expenses (Note 9) $ 384,730 $ 318,576

Other non-financial assets (NotelO) $ 468,725 $ 454,346

Total non-financial assets $ 33,371,620 $ 34,343,190

Accumulated surplus (Schedule 1; Note 11) $ 12,260,602 $ 12,466,761

Accumulating surplus I (deficit) is comprised of:

Accumulated operating surplus (deficit) $ 12,260,602 $ 12,466,761

Accumulated remeasurement gains (losses) $ - $ -

$ 12,260,602 $ 12,466,761

Contractual rights

Contingent assets

Contractual obligations (Note 12)

Contingent liabilities (Note 13)

2018 2017

The accompanying notes and schedules are part of these financial statements.

4


STATEMENT OF OPERATIONS

For the Year Ended August 31 207 8 (in dollars)

Budget

2018

Actual

2018

Actual

2017

REVENUES

Adberta EducaUon $ 55,519,363 $ 56,745,429 $ 55,730,815

Dther-Governrnentof Alberta $ 208,750 $ 744,899 $ 427,975

FederalGovernmentandFfrstNaflons $ $ 36,576 $ 15,110

DtherAlbertaschoolauthorifies $ $ 13,702 $ 75,900

Dutofprovinceauthorities$ $

$ $ 110,688 $

Propertytaxes $ $ $

--——--- ---- --- --—- ---—-—— -

(Schedule8) $ 1,047,679 $ 735,268 $ 1,172,904

Other sales andservices $ 503,31 8 $ 1 004,731 $ 848,084

Investment income $ 185,500 $ 325,810 $ 65,957

Glttsanddonations $ $ 152,503 $ 149,637

Rentaloffacflities $ 65,440 $ 69,249 $ 54,577

Fundrsing $ 50,000 $ 463,066 $ 367,062

Gains on disposal of capital assets $ 1,000 $ 12,976 $ -

Otherrevenue $ $ $

Totalrevenues $ 57,581,050 $ 60,414,897 $ 58,908,021

EXPENSES

Instruction-ECS $ 3,091,836 $ 3,855,208 $ 3,127,450

Instruction 12 $ 43,174,182 $ 43,541,294 $ 42,669,432

Plant operafionsandrnaintenance (Schedule 4) 6,652,128 $ 6,112,865 6,762,983

Transportaon $ 4,690,933 $ 4,983,327 $ 4,781,900

Board & systemadmstration $ 1,953,258 $ 2,128,362 2,133,897

ExternalseRñces $ $ $ -

Total expenses $ 59,562,337 $ 60,621,056 $ 59,475,662

Operating surplus (deficit) I s (1,981,287)1 $ (206,159)1 $ (567,640)



STATEMENT OF CASH FLOWS

For the Year Ended August 31 , 201 8 (in dollars)

2018 2017

CASH FLOWS FROM:

A. OPERATING TRANSACTIONS

I (206159t1 S (567.640t

Add (Deduct items not affectina cash:

— ull uIputI UI LaIIyJIeLd.IfIL1I let

Expended f:?c( capita! revenue recognition

‘if& ! I dh.-.

Total cash flows from operating transactions

B. CAPITAL TRANSACTIONS

Purchases of tangible capital assets

C. INVESTING TRANSACTIONS

Purchases of portfolio investments

). FINANCING TRANSACTIONS

Issue of debt

S (1.740.818

$

$ (1.699.488

$

$ 1,039,289 $ 2,479,775

ThtalamorlizaUon expense $ 2,429,193 $ 2,402,536

Gains ojsaloftang)ble capital assets $ (12,976) $ -

I ocees - -•—-‘-- ‘ - -----“-‘- --.-:-, s 2qS42 i 4RC4

Donations in kind $ - $ -

PogcJz -

Accounts receivable $ (366,817t $ 2,768,389

Pppp)s __________________________________________ $ (66,154) $ (84,966

Other financial assets $ - $ -

Non-finandaLassets $ (14,379t $ (46,6851

Accounts payable, accruedand other liabilities $ 327,666 $ (1,304,5481

Deferred revenue(pp)g)p,gDCR) $ 660,091 $ 1,007,323

Employee future benefit liabilities $ - $ -

Other(describe)______ -——--———---—______________________________ $ - $ -

Land

Buildinas

S

Net oroceeds from disoosal of unsucoorted caoital assets

$

g_yjp01cpi___________ - —______________________________________

$ (32,716) $ -

Vehicles $ (777,937t $ (405,312

—---— $ (38,9311 $ -

$

Total cash flows from capital transactions

(557,446 $ (1 n-- ooe

Other (describe) $ - $

$

S

13,275 5 2,868

(1.393,755) S (1 435.671

Total cash flows from investing transactions

Dispositions of portfolio investments

Remeasurement (gains) losses reclassified to the statement of operations $ - $ -

Other_(Describe) $ - $ -

Other (describe) $ - $ -

$ - $

S S

$ $

ppayment of debt $ (51 0271 $ (83,267)

Other factors affecting debt (describe) $ - $ -

Issuance of capital leases $ - $ -

Repayment of capital leases $ - $ -



Total cash flows from financing transactions $ (51 027) $ (83,267)

Increase (decrease) in cash and cash equivalents S (405,493)1 5 960,837

Dash and cash equivalents, at end of year

Dash and cash equivalents, at beginning of year

$

$ 6,392,044 I s 5,431,207

5,986,551 I s 6,392,044



Effect of changes in tangible capital assets

STATEMENT OF CHANGE IN NET FINANCIAL ASSETS (NET DEBT)

For the Year Ended August 31, 2018 (in dollars)

Acauisition of tanaible caoital assets S S

Increase (decrease) in net financial assets (net debt) $ 765412 $

Oeratin sumlus (deficit)

2018 2017

(206159) $ (567640)

(1.407.030) (1.438.539)

Amort[zation_oftangibleçpal assets S 2,429,193 $ 2,402,536

$ 29,941 $ 7,722

Write-down caygvaieoftangible assets $ - $ -

p_______ -

$ - $ -

Total effect of changes in tangible capital assets $ 1 052,104 $ 971718

Changes in:

expenses $ (66,154) $ (84,966)

Other non-financial assets $ (14,379) 5 (46,685)

Net remeasurement gains and (losses) $ - $ -

Endowments $ - $

Net financial assets (net debt) at beginning of year S (21,876,430) $ (22,148,857)

Net financial assets (net debt) at end of year $ (21 111 018) $ (21,876,430)

272,427



STATEMENT OF REMEASUREMENT GAINS AND LOSSES

For the Year Ended August 37 , 207 8 (in dollars)

2018 2017

ftccumulated remeasurement_gains (losses) at beginning of year

_________

$ - $

Prior Period Adjustment 1 (Describe) $ $

Prior Period Adjustment 2 (Describe) $ - $ -

Unrealized gains (losses) attributable to:

Portfolio_investments $ - $ -

Other $ - $ -

Amounts reclassified to the statement of operations:

Portfolio investments $ - $ -

Other $ - $ -

Net remeasurement gains (losses) for the year I - $ -

Accumulated remeasurement gains (losses) at end of year I -


School Jurisdiction Code:

SCHEDULE 1SCHEDULE OF CHANGES IN ACCUMULATED SURPLUS

for the Year Ended August 31 , 201 8 (in dollars)

1175

INTERNALLY RESTRICTED

ACCUMULATED ACCUMULATED ACCUMULATED INVESTMENT ENDOWMENTS UNRESTRICTED TOTAL TOTAL

SURPLUS REMEASUREMENT OPERATING IN TANGIBLE SURPLUS OPERATING CAPITAL

GAINS(LOSSES) SURPLUS CAPITAL RESERVES RESERVESASSETS

Balance at August 37, 2017 12,466,761 $ - $ 12,466,761 $ 4,634,705 $ - $ 903,066 $ 5,911,472 $ 1,017,518

Prior period adjustments:

$ - $ - $ - $ - $ - $ - $ - $

$ - $ - $ - $ - $ - $ - $ - $

Adjusted Balance, August 31, 2017 12,466,761 s - s 12,466,761 $ 4,634,705 $ - $ 903,066 $ 5,911,472 $ 1,017,518

Operating surplus (deficit) (206,159) $ (206,159) $ (206,159)

Board funded tangible capital asset additions 849,584 $ - $ (65,908) $ (783,676)Disposal of unsupported tangible capitalassets or board funded portion of supported $ $ $ (29,941 ) $ $ 29,941Write-down of unsupported tangible capitalassets or board funded portion of suorted $ $ $ $ $

Net remeasurement gains (losses) for the year

Endowment expenses & disbursements

Endowment contributions

Reinvested endowment income

Direct credits to accumulated surplus‘Describe) $ - $ - $ - $ - $ - $ - $ -

Amortization of tangible capital assets (2,429,193) $ 2,429,193

Capital revenue recognized 1,740,818 $ (1,740,818)

Debt principal repayments (unsupported)

Additional capital debt or capital leases

Net transfers to operating reserves (306,389) $ 306,389

Net transfers from operating reserves 891 61 6 $ (891 616)

Net transfers to capital reserves (1 067,443) $ 1,067,443

Net transfers from capital reserves

OtherChanges$ - $ - $ - $ - $ - $ - $ -

Other Changes $ $ - $ - $ - $ - $ -

Balance at August 31, 2018 12,260,602 $ - $ 12,260,602 $ 4,765,973 $ - $ 903,066 $ 5,260,337 $ 1,331,226

9

School Jurisdiction Code:

SCHEDULE 1SCHEDULE OF CHANGES IN ACCUMULATED SURPLUS

for the Year Ended August 31, 2018 (in dollars)

1175

INTERNALLY RESTRICTED RESERVES BY ROGRAM

School & Instruction Related Operations & Maintenance Board & System Administration Transportation External Services

Operating Capital Operating Capital Operating Capital Operating Capital Operating CapitalReserves Reserves Reserves Reserves Reserves Reserves Reserves Reserves Reserves Reserves

Balance at August 31, 2077 5,571,911 $ - $ (147,344) $ 113,472 $ 524,819 $ 679,108 $ 22,086 $ 224,938 $ (0) $ -

Prior period adjustments:

$ - $ - $ - $ - $ - $ - $ - $ - $ - $

$ - $ - $ - $ - $ - $ - $ - $ - $ - $

Adjusted Balance, August31, 2017 5511911 s - s 147,344 s 113,472 $ 524,819 $ 679,108 $ 22,086 $ 224,938 $ (0) $ -

Operating surplus (deficit)

Board funded tangible capital asset additions (19455) s - $ - $ (39,944) $ (46,453) $ - $ - $ (743,732) $ - $ -

Disposal of unsupported tangible capitalassets or board funded portion of suoorted $ - $ - $ - $ 29,941 $ -

Write-down of unsupported tangible capitalassets or board funded portion of suorted $ $ $ $ $

Net remeasurement gains (losses) for the year

Endowment expenses & disbursements

Endowment contributions

Reinvested endowment income

Direct credits to accumulated surplus(Describe) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Amortization of tangible capital assets

Capital revenue recognized

Debt principal repayments (unsupported)

Additional capital debt or capital leases

Net transfers to operating reserves 44,392 $ 189,159 $ 58,354 $ 14,484 $ -

Net transfers from operating reserves (676549) $ - s (51 323) $ (1 63,744 $ -

Net transfers to capital reserves 46,550 $ - s 1 020,893 $ -

Net transfers from capital reserves

OtherChanges

OtherChanges

Balance at August 31, 2018 4,860,299 $ - $ 41,815 $ 120,078 $ 485,397 $ 679,108 $ (127,174) $ 532,040 $ (0) $ -

10

SCHEDULE 2

SCHEDULE OF CAPITAL REVENUE

(EXTERNALLY RESTRICTED CAPITAL REVENUE ONLY)

for the Year Ended August 37, 2018 (in dollars)

1175

Unexpended Deferred Capital Revenue

Unexpended Deferred Capital Revenue

(A) - Represents funding received from the Government of Alberta to be used toward the acquisition of new approved tangible capital assets with restricted uses only. Please specify department

if funds received from a source other than Alberta Education.(B) - Represents any surplus of funding over costs from column (A) approved by Minister for future capital expenditures with restricted uses only.

(C) - Represents proceeds on disposal of provincially funded restricted-use capital assets to be expended on approved capital assets per 1O(2)(a) of Disposition of Property Reg. 181/2010.

(D) - Represents capital revenue received from entities OTHER THAN the Government of Alberta for the acquisition of restricted-use tangible capital assets.

Proceeds on Unexpended

Disposal of DeferredProvincially Surplus from Provincially CapitalApproved Provincially Funded Revenue from

& Funded Approved Tangible Capital Other

Projects (A) Projects (B)Assets

q tot

ExpendedDeferred

Capital

Revenue

Flalance at August 31, 2017 $ (01 $ - $ - $ - $ 28,235,564

Prior period adjustments ---- $ - $ - $ - $ $

Adjusted Balance, August 31, 2017 $ (0) $ - $ - $ $ 28,935,564

Add:

Unexpended capital revenue received from:

Alberta Education capital funding (excl. IMR) $ 13,394

Alberta Infrastructure school building & modular projects $ -

Infrastructure Maintenance & Renewal capital related to school facilities $ 497,232

Other sources: $ - $

Other sources: $ - $ -

Unexpended capital revenue receivable from:

—.-----

Alberta Education caph&funjpgjqxpjMR) $ 46,820

—-

Alberta Infrastructure school building &modular projects $ -

Other sources: $ - $ -

Othersources: $ - $

Interest earnedon unexpended capital revenue $ - $ - $ - $ -

Other unexpended capital revenue: $ -

Proceeds on disposition ofsupported capital $ - $ -

Insurance proceeds (and related interest) $ - $ -

Pc0A(R tangible capital assets: $ -

Alberta Infrastructure managed projects

Transferred in (out) tangible capital assets (amortizable, @ net book value) $ -

Expendedcapital revenue - current year $ (557,446) $ - $ - $ - $ 557,446

Surplusfunds approved for future project(s) $ - $ -

Otheradjustrnents: $ - $ - $ - $ - $ -

Deduct:

Supported tangible capital dispositions $ -

Other adjustments: I - - $ - $ - $ -

Capital revenue recognized - Alberta Education $ 1,740,818

Capital revenue recognized - Other Government of Alberta $ -

recognized - Other revenue . $ -

Balance at August 31, 2018 - $ (0)! $ - I - I - I 27,752,192

(A) (B) (C) (0)

Balance of Unexpended Deferred Capital Revenue at August31, 2018 (A) + (B) + (C) + (D) I s (0)J

11

SCHEDULE 3 School Jurisdiction Code: 1175

SCHEDULE OF PROGRAM OPERATIONSfor the Year Ended August 31 , 207 8 (in dollars)

2018 2077

Plant Operations Board &REVENUES Instruction and System External

ECS Grades 1 - 72 Maintenance Transportation Administration Services TOTAL TOTAL

(1) Alberta Education 3,909,277 $ 40,386,640 $ 6,012,832 $ 4,379,809 2,056,871 - $ 56,745,429 $ 55,730,815

(2) Other - Government of Alberta - $ 705,41 9 $ 39,480 $ - - - $ 744,899 $ 427,975

(3) Federal Government and First Nations 2,277 $ 34,299 $ - $ - - - $ 36,576 $ 15,110

(4) Other Alberta school authorities - $ 1 3,702 $ - $ - - - $ 1 3,702 $ 75,900

(5) Out of province authorities $ - $ - $ - $ - $ - $ - - $ -

(6) Alberta municipalities-special tax levies $ - $ 1 10,688 $ - $ - $ - $ - $ 1 1 0,688 $ -

(7) Propertytaxes $ - $ - $ - $ - $ - $ - $ - $ -

(8) Fees $ - $ 407,589 $ 327,679 $ - $ 735,268 $ 1,172,904

(9) Other sales and services $ 50,640 $ 853,585 $ 1 0,645 $ 89,61 8 $ 243 $ - 1 004,731 $ 848,084

(10) Investment income - 127,141 $ 163,994 $ 14,750 $ 19,925 - 325,810 $ 65,957

(11) Gifts and donations 8,500 144,003 $ - $ - $ - - 152,503 $ 149,637

(12) Rental of facilities - 26,577 $ 42,672 $ - $ - - 69,249 $ 54,577

(13) Fundraising - 463,066 $ - $ - $ - - 463,066 $ 367,062

(1 4) Gains on disposal of tangible capital assets - 1 550 $ 3,699 $ 7,727 $ - - 1 2,976 $ -

(15) Otherrevenue $ - - $ - $ - $ - - - $ -

(16) TOTAL REVENUES $ 3,970,694 43,274,259 $ 6,273,322 $ 4,819,583 $ 2,077,039 $ - 60,414,897 $ 58,908,021

EXPENSES

(17) Certificated salaries $ 1,410,928 $ 22,543,464 $ 313,442 $ - $ 24,267,834 $ 24,434,074

(18) Certificated benefits $ 298,813 $ 5,052,508 $ 34,479 $ - $ 5,385,800 $ 5,262,354

(19) Non-certificated salaries and wages $ 1,685,950 $ 8,943,972 $ 578,470 $ 2,188,209 $ 895,294 $ - $ 14,291,895 $ 11,871,448

(20) Non-certificated benefits $ 114,618 $ 626,342 $ 141,310 $ 637,430 $ 166,492 $ - $ 1,686,192 $ 2,901,932

(21) SUB - TOTAL $ 3,510,309 $ 37,166,286 $ 719,780 $ 2,825,639 $ 1,409,707 $ - $ 45,631,721 $ 44,469,809

(22) Services, contracts and supplies $ 344,899 $ 6,299,763 $ 3,597,231 $ 1,623,478 $ 660,301 $ - $ 12,525,672 $ 12,581,883

(23) Amortization of supported tangible capital assets $ - $ - $ 1 740,81 8 $ - $ - $ - $ 1 740,81 8 $ 1,699,488

(24) Amortization of unsupported tangible capital assets $ - 75,201 $ 50,252 $ 504,568 $ 58,354 $ - $ 688,375 $ 703,048

(25) Supported interest on capital debt $ - $ - $ - $ - $ - $ - $ - $ 15,502

(26) Unsupported interest on capital debt $ - $ - $ 4,784 $ - $ - $ - $ 4,784 $ -

(27) Other interest and finance charges $ - $ 44 $ - $ - $ - $ - $ 44 $ 1,078

(28) Losses on disposal of tangible capital assets $ - $ - $ - $ 29,642 $ - $ - $ 29,642 $ 4,854

(29) Other expense $ - - $ - $ - $ - $ - $ - $ -

(30) TOTAL EXPENSES $ 3,855,208 43,541,294 $ 6,112,865 $ 4,983,327 $ 2,128,362 $ - $ 60,621,056 $ 59,475,662

(31) OPERATING SURPLUS(DEFICIT) $ 115,486 $ (267,035)$ 160,457 $ (163,744) $ (51,323) $ - $ (206,159) $ (567,640)

12


SCHEDULE OF PLANT OPERATIONS AND MAINTENANCE EXPENSESfor the Year Ended August 31 , 2018 (in dollars)

Expensed IMR, Unsupported 2018 2017 TOTAL

Utilities Modular Unit . . Amortization Supported TOTAL Operations andFacility Planning &

EXPENSES Custodial Maintenance and Relocations & Operations & Other Capital & Debt Operations and Maintenance

Telecomm. Lease Payments Administration Expenses Services Maintenance

iJncefificated salaries and wages $ - $ 302,549 $ - $ 140,545 $ 135,375 $ 578,469 $ 697,337

Uncertificated benefits $ - $ 63,711 $ - $ 46,848 $ 30,750 $ 141,309 $ 161,434

Sub-total Remuneration $ - $ 366,260 $ - $ 187,393 $ 166,125 $ 719,778 $ 858,771

3uppliesandservices $ 1,084,216 $ 736,613 $ - $ 521,892 $ 10,570 $ 2,353,291 $ 2,893,420

Electricity $ 591,185 $ 591,185 $ 590,904

Natural gas/heating fuel $ 330,670 $ 330,670 $ 334,507

Sewer and water $ 87,086 $ 87,086 $ 98,301

Telecommunications $ 8,998 $ 8,998 $ 9,581

Insurance $ 226,003 $ 226,003 $ 205,774

ASAP maintenance & renewal payments $ - $ - $ -

Amortization of tangible capital assets

Supported $ 1,740,818 $ 1,740,818 $ 1,719,461

Unsupported $ 50,252 $ 50,252 $ 36,763

Total Amortization $ 50,252 $ 1,740,818 $ 1,791,070 $ 1,756,224

nterest on capital debt

Supported $ 4,784 $ 4,784 $ 15,502

Unsupported $ - $ - $ -

, ease payments for facilities $ - $ - $ -

Other interest charges _________________ $ - $ - $ -

Losses on disposal of capital assets $ - $ - $ -

TOTAL EXPENSES $ 1,084,216 $ 1,102,873 $ 1,017,939 $ 709,285 $ 402,698 $ 50,252 $ 1,745,602 $ 6,112,865 $ 6,762,983

I

SQUARE METRES

jchool buildings 57,203.5 57,203.5

[ Non school buildings 4,244.8 4,244.8

Note:

Custodial: All expenses related to activities undertaken to keep the school environment and maintenance shops clean and safe.

Maintenance: All expenses associated with the repair, replacement, enhancement and minor construction of buildings, grounds and equipment components. This includes regular and preventative

maintenance undertaken to ensure components reach or exceed their life cycle and the repair of broken components. Maintenance expenses exclude operational costs related to

expensed IMR & Modular Unit relocations, as they are reported on separately.

Utilities & Telecommunications: All expenses related to electricity, natural gas and other heating fuels, sewer and water and all forms of telecommunications.

Expensed MR & Modular Unit Relocation & Lease Pmts: All operational expenses associated with non-capitalized Infrastructure Maintenance Renewal projects, modular unit (portable) relocation, and payments on leased facilities.

Facility Planning & Operations Administration: All expenses related to the administration of operations and maintenance including (but not limited to( contract administration, clerical functions, negotiations, supervision of employees

& contractors, school facility planning & project administration, administration ofjoint-use agreements, and all expenses related to ensuring compliance with health and safety standards,

codes and government regulations.

Unsupported Amortization & Other Expenses: All expenses related to unsupported capital assets amortization and interest on unsupported capital debt.

Supported Capital & Debt Services: All expenses related to supported capital assets amortization and interest on supported capital debt.

13


SCHEDULE OF CASH, CASH EQUIVALENTS, AND PORTFOLIO INVESTMENTS


See Note 3 for additonaI detail.

Average

Effective

(Market) Yield

See Note 5 for additional detail.

Thefollowing represents the maturity structurefor portfolio investments based on principal amount:

2078 2017

Cash & Cash Equivalents 2018 2017

Cost Amortized Cost Amortized Cost

Cash $ - $ 5,986,551 $ 6,392,044

Cash equivalents

Government of Canada, direct and guaranteed 0.00% - - -

Provincial, direct and guaranteed 0.00% - - -

Corporate 0.00% - - -

Municipal 0.00% - - -

Pooled investment funds 000% - -

Other, including GIC’s 0.00% - -

Total cash and cash equivalents 000% $ $ 5.98655 $ 639204

Portfolio Investments.-‘- .

Effective

(Market) Yield

2018 2017fl,rnø

Cost Fair Value Balance Balance

Long term deposits 0.00% $ - $ - $ - $ -

Guaranteed investment certificates 0.00% - - - -

Fixed income securities

Government of Canada, direct and guaranteed0.00% $ - $ - $ - $ -

Provincial, direct and guaranteed 0.00% - - - -

Municipal 0.00% - - - -

Corporate 0.00% - - - -

Pooled investment funds 0.00% - - - -

Total fixed income securities fJQQ% - - -

Equities

Canadian 0.00% $ - $ - $ - $ -

Foreign 0.00% - - - -

Total equities p_Q_Q_ - - -

Supplemental integrated pension plan assets 000% $ - $ - $ - $ -

Restricted investments 000% - - - -

Other (Specify) 000% - - - -

Other (Specify) 0.00% - - - -

Total portfolio investments 0.00% $ - $ - $ - $ -

Under 1 year 0.0% 0.0%

ito5years 0.0% 0.0%

6toloyears 0.0% 0.0%

llto2oyears 0.0% 0.0%

Over2oyears 0.0% 0.0%

14


SCHEDULE OF CAPITAL ASSETS


Tangible Capital Assets

_____________ _____________ _____________

2018

__________________________ _____________

2017Computer

Construction In Hardware & Total Total

Land Progress* Buildings Equipment Vehicles Software

Estimated useful life 25-50 Years 5-10 Years 5-10 Years 3-5 Years

Historical costBeginning of year $ 512,834 $ - $ 63,522,957 $ 332,100 $ 9,432,983 $ 225,168 $ 74,026,043 $ 72,626,114

Prior period adjustments - - - - - - - -

Additions - - 557,446 32,716 777,937 38,931 1,407,030 1,438,539

Transfers in (out) - - - - - - - -

Less disposals including write-offs - - (506,308) (954,666) (1 460,974) (38,610)

Historical cost, August 31, 2018 $ 512,834 $ - $ 63,574,095 $ 364,816 $ 9,256,254 $ 264,099 $ 73,972,099 $ 74,026,043

Accumulated amortizationBeginning ofyear $ - $ - $ 33,693,689 $ 313,703 $ 6,261,377 $ 187,005 $ 40,455,774 $ 38,084,127

Prior period adjustments -- - - - -

- -

Amortization - - 1,804,190 11,143 575,693 38,166 2,429,192 2,402,535

-Otheradditions - -

- - - -

Transfers in (out) - - - - -- -

-

Less disposals including write-offs - - (506,308) (924,724) (1 431 032) (30,888)

Accumulated amortization, August 31, 2017 $ - $ - $ 34,991,571 $ 324,846 $ 5,912,346 $ 225,171 $ 41,453,93’ $ 40,455,774

Net Book Value at August 31, 2018 $ 51283d $ - $ 28582525 $ 39970 $ 3343908 $ 3892S $ 3251 816F

NetBookValueatAugust3l,2017 I_$ 51834I_$ -I_$ 29829.2691_$ 183971_$ 31716061_$ 381631 I $ 335702691

2018 2017

Total cost of assets under capital lease $ - $Total amortization of assets under capital lease $ - $

15

SCHEDULE 7

SCHEDULE OF REMUNERATION AND MONETARY INCENTIVES



Performance Other Accrued

Board Members: FTE Remuneration Benefits Allowances Bonuses ERIP’s / Other Paid Unpaid Benefits Expenses

Tuininga, Jennifer 1 .00 $3645 $670 $0 $2,385

Bokenfohr, Annette 0.17 $367 $139 $0 $231

Comeau, Jackie 1 .00 $2861 6 $631 $0 $5,201

Hoffart,Jan 0.17 $2,450 $255

Jackie Carson 0.83 $1951 1 $5, $3,175

KerryMcElroy 0.83 $17. $1. $2,673

Lefebvre,Judy 1.00 $21, $2, $1,714

Nancy Keough 0.83 $17,4 $4, 4 $0 $4,317

Watson, Sheri 0.17 $2,7 $1, 1 $1,356

Webster, Kim 0.17 $2,7 $1, $0 $147

WendyScinski 0.83 $18,6 $2. $2,354- $ $0

Subtotal 7.00 $777,745 $3482 0 $23,807

Garbutt, Dave 1 .00 $1 90,524 $26,550 $0 $0 $0 $0 $2,800- I $0 $0 $0 $0 $0 $0 $0- I $0 $0 $0 $0 $0 $0 $0

Meunier,Tracy i.ooJ $168,201 $41,450 $0 $0 $0 $0 $712- I $0 $0 $0 $0 $0 $0 $0

I $0 $0 $0 $0 $0 $0 $0

Certificated $24,077,310 $5,359,250 $0 $0 $0 $0

School based 244.70

Non-School based 2.00

Non-certificated $13,952,549 $1,609,917 $0 $0 $0 $0

Instructional 181.00

Plant Operations & Maintenance 5.70

Transportation 72.80

Other 12.60

TOTALS I 527.80 $385597291 $70719921 sol sol sol sol $27,319

16


SCHEDULE 8UNAUDITED SCHEDULE OF FEES

for the Year Ending August 31, 2018 (in doNars)

Actual Fees Budgeted Fee (A) Actual Fees (B) Unexpended (C) Funds Raised (D) Expenditures (A) + (B) + (C) - (0)

Collected 2016/2077 Revenue 2017/2018 Collected September 1, to Defray Fees 2017/2018 Unexpended

2017/2018 2017* 2077/2078 Balance at

August 31, 201 8*

Transportation Fees $299,031 $323,000 $327,679 $0 $0 $327,679 $0

Basic Instruction FeesBasic instruction supplies $362,699 $40,020 $30,174 $0 $0 $837,577 $0

Fees to Enhance Basic InstructionTechnology user fees $0 $0 $0 $0 $0 $0 $0Alternative program lees $0 $0 $0 $0 $0 $0 $0Fees for optional courses $35,034 $53,680 $21 102 $0 $0 $131 535 $0Activitylees $156,868 $256,059 $110,940 $0 $39,118 $161,808 $0Early childhood services $14,178 $0 $0 $0 $0 $0 $0Other fees to enhance education $0 $50,299 $0 $0 $0 $0 $0

Non-Curricular feesExtracurricularfees $152,450 $179,675 $164,607 $0 $20,924 $186,545 $0Non-curriculartravel $123,967 $120,395 $68,326 $0 $10,917 $79,272 $0Lunch supervision and noon hour activity fees $0 $0 $0 $0 $0 $0 $0Non-curricular goods and services $28,677 $24,551 $12,440 $0 $4,549 $19,122 $0Other Fees $0 $0 $0 $0 $0 $0 $0

TOTALFEES $1,172,904 $1,047,679 $735,268 $0 $75,507 $1,743,538 $0*Unexpended balances cannot be less than $0

. - . . . F Actual ActualPlease disclose amounts paid by parents of students that are recorded as Other sales and services’, “Fundraising’, or “Other

201 8 2017revenue’ (rather than fee revenue):

Cafeteria sales, hot lunch, milk programs $36,506 $49,275Special events, graduation, tickets $1 18,434 $101,2389ternational and out of province student revenue $0 $0Sales or rentals of other supplies/services (clothing, agendas, yearbooks) $459,444 $329,451Adult education revenue $0 $0Preschool $50,640 $44,086Child care & before and after school care $0 $0Lost item replacement fee $0 $0Other (Describe) $0 $0Other (Describe) $0 $0Other (Describe) $0 $0

TOTAL , -- $665,025

17

SCHEDULE9 1175

UNAUDITED SCHEDULE OF DIFFERENTIAL FUNDINGfor the Year Ended August 31 201 8 (in dollars)

PROGRAM AREA

First Nations, English as a Small Schools byMetis & Inuit ECS Program Unit Second Language Inclusive Necessity

(FNMI) Funding (PUF) (ESL) Education (Revenue only)Funded Students in Program 495 110 156Federally Funded Students -

REVENUESAlberta Education allocated funding $ 564,310 $ 2,474,778 $ 123,406 $ 3,603,760 $Other funding allocated by the board to the program $ - $ - $ - $ - $TOTAL REVENUES $ 564,310 $ 2,474,778 $ 123,406 $ 3,603,760 $

EXPENSES (Not allocated from BASE, Transportation, or o her funding)Instructional certificated salaries & benefits $ - $ 801,915 - $ -

Instructional non-certificated salaries & benefits $ 553,092 $ 1 254,869 123,406 $ 3,765,929SUB TOTAL $ 553,092 $ 2,056,784 123,406 3,765,929Supplies, contracts and services $ 1 1 21 8 $ 31 5,71 3 - -

Program planning, monitoring & evaluation $ - $ 69,714 $ - -

Facilities (required specifically for program area) $ - $ - ‘ - -

Administration (administrative salaries & services) $ - $ 32,567 $ - -

Other (please describe) $ - $ - $ - -

Other (please describe) $ - $ - $ - -

TOTAL EXPENSES $ 564,310 $ 2,474,778 $ 123,406 3,765,929NET FUNDING SURPLUS (SHORTFALL) $ - $ - $ - (162,169)

is


SCHEDULE JO

UNAUDITED SCHEDULE OF CENTRAL ADMINISTRATION EXPENSESfor the Year Ended August 31, 2018 (in dollars)

Allocated to Board & System Administration Allocated to Other Programs

Salaries & Supplies & Salaries & Supplies &EXPENSES Benefits Services Other TOTAL Benefits Services Other TOTAL

Office ofthe superintendent $ 249,017 $ 68,798 $ - $ 317,815 $ - $ - $ - $ 317,815

Educational administration (excluding superintendent) $ 303,359 $ 83,812 $ - $ 387,171 $ 40,573 $ 2,225 $ - $ 429,969

Business administration $ 285,959 $ 92,738 $ - $ 378,697 $ - $ - $ - $ 378,697

Board governance (Board of Trustees) $ 1 48,863 $ 85,71 9 $ - $ 234,582 $ - $ - $ - $ 234,582

Information technology $ 45,390 $ 34,481 $ - $ 79,871 $ 33,107 $ 1,850 $ - $ 114,828

Human resources $ 245,360 $ 88,698 $ - $ 334,058 $ - $ - $ - $ 334,058

Central purchasing, communications, marketing $ 27,108 $ 89,485 $ - $ 116,593 $ - $ - $ - $ 116,593

Payroll $ 104,650 $ 28,913 $ - $ 133,563 $ - $ - $ - $ 133,563

Administration - insurance $ 70,206 $ 70,206 $ - $ 70,206

Administration - amortization $ 58,354 $ 58,354 $ - $ 58,354

Administration - other (admin building, interest) $ 17,452 $ 17,452 $ - $ 17,452

Other (describe) $ - $ - $ - $ - $ - $ - $ - $ -

Other (describe) $ - $ - $ - $ - $ - $ - $ - $ -

Other (describe) $ - $ - $ - $ - $ - $ - $ - $ -

TOTAL EXPENSES $ 1,409,706 $ 572,644 $ 146,012 $ 2,128,362 $ 73,680 $ 4,075 $ - $ 2,206,117

19


SCHEDULE 11 Average Estimated # of Students Served Per Meal:I 680.00

UNAUDITED SCHEDULE OF NUTRITION PROGRAM EXPENDITURESfor the Year Ending August 31, 2018

I Budget2Ol8 2018REVENUES

Alberta Education - current $ 1 41 000 $ 99,518Alberta Education - prior year $ - $ -OtherFunding $ - $ -

TOTALREVENUES $ 141,000 $ 99518

EXPENSESSalaries & Benefits FTE

Project Coordinator $ 15,800 $ 19,523Cook $ - $ -Volunteer Honorarium $ 1 800 $ 2,301Other (please describe) $ - $ 73Other (please describe) $ - $ -

Food Supplies $ 92,930 $ 57,685Office Supplies $ - $ 665Small Kitchenwares (e.g. toaster, measuring cups/spoons, bowls, cutting boards) $ 2,355 $ 2,904Non-Capitalized Assets

Microwave $ 770 $ 724Refrigerator $ 3,900 $ 3,793Stove $ 1 900 $ 1,509Tables $ 1,500 $ 758Toaster $ 435 $ 408Dishwasher $ 6,400 $ 2,934Other (Carts, Garden Tower,Portable Warmer, Freezer ...) $ 1 1 985 $ 5,175

Training (e.g. workshops, training materials) $ 525 $ 248Contracted Services (please describe) $ - $ -Other Expenses

Kitchen Aprons $ 100 $ 100Food Delivery $ - $ -Education Nights $ 200 $ 160Cleaning Supplies, Other $ 400 $ 558

TOTALEXPENSES $ 141,000 $ 99,518

‘LNNUAL SURPLUS/DEFICIT I I $

PEMBINA HILLS REGIONAL DIVISION NO. 7

Notes to the Financial Statements

For the Year Ended August 31, 2018

7. AUTHORITY AND PURPOSEPS 7000, Ps 7700

Pembina Hills Regional Division No. 7 delivers education programs under the authority of the SchoolAct, Revised Statutes of Alberta 2000, Chapter 5-3.

The jurisdiction receives funding for instruction and support under Education Grants Regulation (AR1 20/2008). The regulation allows for the setting of conditions and use of grant monies. PembinaHills Regional Division No. 7 is limited on certain funding allocations and administration expenses.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThese financial statements have been prepared in accordance with the CICA Canadian public sectoraccounting standards (PSAS). The financial statements have, in management’s opinion, beenproperly prepared within reasonable limits of materiality and within the framework of the accountingpolicies summarized below:

a) Cash and Cash EquivalentsPS 7207.704-.705

Cash and cash equivalents include cash and investments that are readily convertible to knownamounts of cash and that are subject to an insignificant risk of change in value. These short-terminvestments have a maturity of three months or less at acquisition and are held for the purpose ofmeeting short-term cash commitments rather than for investing.

b) Accounts Receivable

Accounts receivable are shown net of allowance for doubtful accounts.

c) Portfolio InvestmentsPS 304 7, P5 3450

Pembina Hills Regional Division No. 7 has no investments in GIC’s, term deposits, bonds, equityinstruments or mutual funds that have no maturity dates or have a maturity of greater than 3months. GIC’s, term deposits and other investments not quoted in an active market are reportedat cost or amortized cost.

d) Tangible Capital AssetsP53750

The following criteria applies:. Tangible capital assets acquired or constructed are recorded at cost which includes

amounts that are directly related to the acquisition, design, construction, development,improvement or betterment of the asset. Cost also includes overhead directly attributableto construction as well as interest costs that are directly attributable to the acquisition orconstruction of the asset.

. Donated tangible capital assets are recorded at their fair market value at the date ofdonation, except in circumstances where fair value cannot be reasonably determined,when they are then recognized at nominal value. Transfers of tangible capital assets fromrelated parties are recorded at original cost less accumulated amortization.

. Work-in-progress is recorded as a transfer to the applicable asset class at substantialcompletion.

. Sites and buildings are written down to residual value when conditions indicate they nolonger contribute to the ability of the School District to provide services or when the valueof future economic benefits associated with the sites and buildings are less than their netbook value. For supported assets, the write-downs are accounted for as reductions toExpended Deferred Capital Revenue.

. Buildings that are demolished or destroyed are written-off.

. Tangible capital assets with costs in excess of $5,000 are capitalized.

. Tangible capital assets are amortized over their estimated useful lives on a straight-linebasis, at the following rates:

Buildings 2.5% to 4%Vehicles & Buses 10% to 20%Computer Hardware & Software 20% to 25%Other Equipment & Furnishings 10% to 20%

e) Deferred RevenuePS 37 00, 34 7 0. 7 6, . 7 7, . 79, .25

Deferred revenue includes contributions received for operations which have stipulations that meetthe definition of a liability per Public SectorAccounting Standard (PSAS) PS 3200. Thesecontributions are recognized by the School District once it has met all eligibility criteria to receivethe contributions. When stipulations are met, deferred revenue is recognized as revenue in thefiscal year in a manner consistent with the circumstances and evidence used to support the initialrecognition of the contributions received as a liability.

Deferred revenue also includes contributions for capital expenditures, unexpended andexpended:

. Unexpended Deferred Capital RevenuePs3700, 3470.76, .77, .79, .25Unexpended Deferred Capital Revenue represent externally restricted supported capitalfunds provided for a specific capital purpose received or receivable by the jurisdiction, butthe related expenditure has not been made at year-end. These contributions must alsohave stipulations that meet the definition of a liability per PS 3200 when expended.

. Expended Deferred Capital RevenuePS 3 700, 34 10. 16, . 7 7, . 79, .25Expended Deferred Capital Revenue represent externally restricted supported capitalfunds that have been expended but have yet to be amortized over the useful life of therelated capital asset. Amortization over the useful life of the related capital asset is dueto certain stipulations related to the contributions that require that the school jurisdictionuse the asset in a prescribed manner over the life of the associated asset.

f) Employee Future BenefitsPS 3250.84, . 7 00-. 7 04, PS 3255.35-. 36

Pembina Hills Regional Division No. 7 has no Employee Future Benefits.

g) Asset Retirement ObligationsHB 3 7 70.2 7, Ps 3280

Pembina Hills Regional Division No. 7 has no asset retirement obligations at August 31 , 2018.

h) Operating and Capital ReservesP5G-4

Certain amounts are internally or externally restricted for future operating or capital purposes.Transfers to and from reserves are recorded when approved by the Board of Trustees. Capitalreserves are restricted to capital purposes and may only be used for operating purposes withapproval by the Minister of Education. Reserves are disclosed in the Schedule of Changes inAccumulated Surplus.

i) Revenue RecognitionPS 34 70. 08, . 7 6, . 7 7, . 79, 3570

Revenues are recorded on an accrual basis. Instruction and support allocations are recognized inthe year to which they relate. Fees for services related to courses and programs are recognizedas revenue when such courses and programs are delivered.

Volunteers contribute a considerable number of hours per year to schools to ensure that certainprograms are delivered, such as kindergarten, lunch services and the raising of school generatedfunds. Contributed services are not recognized in the financial statements.

Eligibility criteria are criteria that the School District has to meet in order to receive certaincontributions. Stipulations describe what the School District must perform in order to keep thecontributions. Contributions without eligibility criteria or stipulations are recognized as revenuewhen the contributions are authorized by the transferring government or entity. Contributions witheligibility criteria but without stipulations are recognized as revenue when the contributions areauthorized by the transferring government or entity and all eligibility criteria have been met.

Contributions with stipulations are recognized as revenue in the period the stipulations are met,except when and to the extent that the contributions give rise to an obligation that meets thedefinition of a liability in accordance with Section PS 3200. Such liabilities are recorded asdeferred revenue.

j) ExpensesP57207.85-88

Expenses are reported on an accrual basis. The cost of all goods consumed and servicesreceived during the year is expensed.

Allocation of Costs. Actual salaries of personnel assigned to two or more programs are allocated based on

the time spent in each program.. Employee benefits and allowances are allocated to the same programs, and in the same

proportions, as the individual’s salary.. Supplies and services are allocated based on actual program identification.

k) PensionsPS 3250

Pension costs included in these statements comprise the cost of employer contributions forcurrent service of employees during the year.

Current and past service costs of the Alberta Teachers Retirement Fund are met by contributionsby active members and the Government of Alberta. Under the terms of the Teachers’ PensionPlan Act, the Pembina Hills School Division does not make pension contributions for certificatedstaff. The Government portion of the current service contribution to the Alberta TeachersRetirement Fund on behalf of the jurisdiction is included in both revenues and expenses. For theschool year ended August 31 , 201 8, the amount contributed by the Government was $3,665,730(2017 $3,610,358).

The school board participates in a multi-employer pension plan, the Local Authorities PensionPlan, and does not report on any unfunded liabilities. The expense for this pension plan isequivalent to the annual contributions of $681 ,036.94 for the year ended August 31 , 2018(201 7 $659,535). At December 31 , 201 7, the Local Authorities Pension Plan reported a surplus of$4,835,51 5,000 (201 6, a deficiency of $637,357,000).

I) Program RepoingPS2700.07, .26

The Division’s operations have been segmented as follows:

. ECS: The provision of Early Childhood Services education that fall under the basic publiceducation mandate.

. Grade 12 Instruction: The provision of grades 1 - 12 instructional services thatfall underthe basic public education mandate.

. Plant Operations and Maintenance: The operation and maintenance of all schoolbuildings and maintenance shop facilities.

. Transportation: The provision of regular and special education bus services (to and fromschool), whether contracted or board operated, including transportation facilities.

. Board & System Administration: The provision of board governance and system-based Icentral office administration.

. External Services: All projects, activities, and services offered outside the publiceducation mandate for ECS children and students in grades 1 -1 2. Services offered beyondthe mandate for public education are to be self-supporting, and Alberta Education fundingmay not be utilized to support these programs.

The allocation of revenues and expenses are reported by program, source, and object on theSchedule of Program Operations.

m) Scholarship Endowment FundsHB4470.29, .49

Contributions and income pertaining to scholarship endowment funds are recognized on theStatement of Operations and must be held in perpetuity in accordance with the agreement withthe donor.

Reinvestment of the endowment principal represents a direct increase to accumulated surplus.The remaining income earned on endowment principal is recognized as deferred revenue or asrevenue in the year to the extent that stipulations have been met. Undisbursed funds earned onendowment principal are recognized as deferred revenue or as revenue in the year to the extentthat stipulations have been met.

Unrealized gains and losses associated with the endowment are recorded in the Statement ofRemeasurement Gains and Losses.

n) Trusts Under AdministrationPS 7300.40, .46

Pembina Hills Regional Division No. 7 has property that has been transferred or assigned to it tobe administered or directed by a trust agreement or statute. The Division holds title to theproperty for the benefit of the beneficiary.

Trusts under administration have been excluded from the financial reporting of the Division. Trustbalances can be found in Note 14.

o) Financial InstrumentsPS 3450

A contract establishing a financial instrument creates, at its inception, rights and obligations toreceive or deliver economic benefits. The financial assets and financial liabilities portray theserights and obligations in the financial statements. The School District recognizes a financialinstrument when it becomes a party to a financial instrument contract.

Financial instruments consist of cash and cash equivalents, accounts receivable, portfolioinvestments, bank indebtedness, accounts payable and accrued liabilities, debt and otherliabilities. Unless otherwise noted, it is management’s opinion that the School District is notexposed to significant credit and liquidity risks, or market risk, which includes currency, interestrate and other price risks.

Portfolio investments in equity instruments quoted in an active market and derivatives arerecorded at fair value. All other financial assets and liabilities are recorded at cost or amortizedcost and the associated transaction costs are added to the carrying value of items in the cost oramortized cost upon initial recognition. The gain or loss arising from derecognition of a financialinstrument is recognized in the Statement of Operations. Impairment losses such as write-downsor write-otis are reported in the Statement of Operations.

p) Measurement UncertaintyPS 2730

The precise determination of many assets and liabilities is dependent on future events. As aresult, the preparation of financial statements for a period involves the use of estimates andapproximations, which have been made using careful judgment. Actual results could differ fromthose estimates. Significant areas requiring the use of management estimates relate to thepotential impairment of assets, rates for amortization and estimated employee future benefits.

q) Liability for Contaminated SitesPS 3260

There are sites within Pembina Hills that may contain contamination. Some of the sites arecurrently in productive use and there is no plan to change the use of these sites in theforeseeable future. Other sites are not in productive use and there would be an indeterminatelevel of contamination in the event that the structures were altered in any significant manner, andat present no estimates are available.

r) Future Accounting Changes

The Public Sector Accounting Board has issued the following accounting standards:

. PS 3430 Restructuring Transaction (effective April 1, 2018)

This standard provides guidance on how to account for and report restructuringtransactions by both transferors and recipients of assets and/or liabilities, together withrelated program or operating responsibilities.

. PS 3280 Asset Retirement Obligations (effective April 1, 2021)

Effective April 1 , 2021 , this standard provides guidance on how to account for and report aliability for retirement of a tangible capital asset.

Management is currently assessing the impact of these standards on the financial statements.

3. CASH AND CASH EQUIVALENTS

2018 2017

Average Effective Amortized Average Effective Amortized

(Market) Yield Cost Cost (Market) Yield Cost Cost

Cash - $ -$5,986,551 - $ - $6,392,044

Cash equivalents

Other, including GICs ¾ - - % - -

Total cash and cash equivalents $ - $5,986,551 $ - $6,392,044

4. ACCOUNTS RECEIVABLE

2018 2017

Allowance Net Net

Gross for Doubtful Realizable Realizable

Amount Accounts Value Value

Alberta Education - Grants $ 439,473 $ - $ 439,473 $ 625,493

Alberta Education - Capital 617,787 - 617,787 727,990

Alberta Education - (Specify) - - -17,265

Other Alberta schooljurisdictions 37,691 - 37,691 98,707

AB Health Services - Paws 13,603 - 13,603 -

AB Health Services - SLP 36,302 36,302

Alberta Govt Ministery - Energy RI. 29,512 29,512

Federal government 106,165 - 106,165 104,230

Municipalities 50,436 - 50,436 33,253

Other 2,332,946 (203,446) 2,129,500 1,486,714

Total $366391 5 $ (203446) $3,460,469 $3,093,652

5. BANK INDEBTEDNESS

The jurisdiction has negotiated a line of credit in the amount of $1 ,000,000 that bears interest at the

bank prime rate. This line of credit is secured by a borrowing bylaw and a security agreement,

covering all revenue of the jurisdiction. There was no balance at August 31 , 201 8 (201 7: $0).

6. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

2018 2017

Alberta Education $ 86,053 $ -

Alberta Capital Finance Authority (Interest on long-term debt - Supported) - 2,791

Federal government 2,030 4,154

Other bankcharges, fees, and interest 746 329

Accrued vacation pay liability 121 475 114,867

Other salaries & benefit costs 105,122 189,018

Other trade payables and accrued liabilities 1 002,1 99 678,800

Total $ 1,317,625 $ 989,959

7 DEFERRED REVENUE

ADD: DEDUCT: ADD (DEDUCT):SOURCE AND GRANT OR FUND TYPE DEFERRED 201 7/201 8 201 7/201 8 201 7/201 8 DEFERRED

REVBJUE Restricted Restricted Funds Adjustments REVB’IUEas at Funds Received! Expended for Returned as at

Aug. 31. 2017 Receivable (Paid I Payable) Funds Aug. 31. 2018Unexpended_deferred_operating_revenue

Alberta Education:Infrastructure Maintenance Renewal 424,736 610,196 (424,736) - 610,196Other Alberta Education deld revenue (Nutrition) 276,713 41,481 (276,713 - 41,481Other Alberta Education def’d revenue (Success in Schools) - 3,745 - - 3,745Other Alberta Education deld revenue (Roots of Brpathy) - 1 288 - - 1,288

Other Government of Alberta: -

GOA FSCD 69,191 69,191 (69,191) - 69,191Other Deferred Revenue: -

School Generated Funds 490,587 37,197 - - 527,784Other 124,348 234,536 (124,348) - 234,536

Total unexpended deferred operating revenue 138bbtb $ 991,634 (394,9%3) $ 1,488,222

Unexpended deferred capital revenue (Schedule 2) - - - - -

Expended deferred capital revenue (Schedule 2) 28,935,564 - - (1,183,372) 27,752,192

Total $ 30,321,140 $ 997,634 $ (894,988) $ (1,183,372 $ 29,240,413

8. DEBT

2018 2017

Supported debentures outstanding at August 31 , 201 8 have

interest rates between 6% to 12%. The terms of the debentures

range between 20 and 25 years, payments made

annually supported by Alberta Education $ - $ 51,027

9. PREPAID EXPENSES:

Prepaid Expenses consist of the following:

2018 2017

Repaid insurance $ - $ -

Other 384,730 31857€

Total $ 384,730 ‘ $ 31857€

10. OTHER NONFINANCIAL ASSETS:

Other non-financial assets consist of the following:

2018 2017

Inventory $ 444,855 $ 439,287

Other 23,870 15,059

Total , $ 468,725 $ 454,346

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15. SCHOOL GENERATED FUNDS

2018

312,590

683,374

2017

16. RELATED PARTY TRANSACTIONS

Related parties are those entities consolidated or accounted for on the modified equity basis in theGovernment of Alberta Consolidated Financial Statements. Related parties also include keymanagement personnel in division and their close family members.

All entities that are consolidated in the accounts of the Government of Alberta are related parties ofschool ju risdictions. These include government departments, health authorities, post-secondaryinstitutions and other school jurisdictions in Alberta.

Balances Transactions

FinancialAssets (atcost or netrealizable Liabilities (at Revenues Expenses

value) amortized cost)Government of Alberta (GOA):

Alberta Education

Accounts receivable I Accounts payable

Repaid expenses I Deferred operating revenue

Unexpended deferred capital revenue

Expended deferred capital revenue

Grant revenue & expenses

ATRF payments made on behalf of district

Other Alberta school jurisdictions .

Alberta Health Services 49,905 -

Other GOA rrnistry (FSCD Rogram - School Link Team) 69,1 91 -

TOTAL 2017/2018 $1,214,047 $ 27,884,759 $60,424,861 $TOTAL 2016/2077 $1,482,166 $ 29,212,277 $59,417,073 $

The jurisdiction’s primary source of income is from the Alberta Government. The Division’s ability tocontinue viable operations is dependent on this funding.

School Generated Funds, Beginning of Year I $ 490,5871 $ 496,962Gross Receipts:

Fees 351,405 381,101

Fundraising 463,066 367,062

Gifts and donations 63,596 94,742

Grantstoschools 3,918 -

Other sales and services 1 51 ,1 76 238,059

Total gross receipts 1 033,1 60 1 080,964

Balance included in Deferred Revenue $ 527,784 S 490,587Balance included in Accumulated Surplus (Operating Reserves)** $ $

Total Related Expenses and Uses of Funds

Total Direct Costs Including Cost of Goods Sold to Raise Funds

School Generated Funds, End of Year

338,501748,837

$ 527784 $ 490587

17. ECONOMIC DEPENDENCE ON RELATED THIRD PARTY

18. BUDGET AMOUNTS

The budget was prepared by the school jurisdiction and approved by the Board of Trustees on June28, 201 7. It is presented for information purposes only and has not been audited.

79. COMPARATIVE FIGURES

The comparative figures have been reclassified where necessary to conform to the 2017/2018presentation.

20. ADLC — Management Services Fee

Effective June 2, 1 997, Pembina Hills Regional Division No. 7 assumed responsibility for theoperation of the Alberta Distance Learning Centre from Alberta Education. Pembina Hills RegionalDivision No. 7 charges their subsidiary, ADLC, a management services fee to provide them withBoard and System Administration for services. The fee is calculated similar to the calculation usedfor the remainder of Pembina Hills’ operations. The fee is netted out of Pembina Hills Board andSystem Administration expenses. For the year ended August 31 , 201 8, the management servicesfee amounted to $996,050.

2018 2077

Board Governance Fees $ 45,000 $ 45,000

Benefits - Board Governance 9,000 9,000

Certificate Salaries 250,000 285,000

Uncertificated Salaries 356,000 350,000

Benefits - System Administration 1 88,000 1 41 ,1 00

Services, Contracts and Supplies 1 48,050 186,074

$ 996,050 $ 1,076,174

AUDITED FINANCIAL STATEMENTS · 1175plk1 AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31,...

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