AUDITED FINANCIAL STATEMENTS FOR THE YEAR ......Contractual obligations (Note 10) Contingent...

0154rsd2

School Jurisdiction Code: 154

AUDITEDFINANCIAL STATEMENTS

FOR THE YEAR ENDED AUGUST 31, 2016[School Act, Sections 147(2)(a), 148, 151(1) and 276]

Legal Name of School Jurisdiction

Mailing Address

Telephone & Fax Numbers, and Email Address

SCHOOL JURISDICTION MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING

The financial statements o

Board of Trustees Responsibility

External Auditors

Declaration of Management and Board Chair

c.c. ALBERTA EDUCATION, Financial Reporting & Accountability Branch8th Floor Commerce Place, 10155-102 Street, Edmonton AB T5J 4L5EMAIL: [email protected] AND [email protected]: Mei-Ling: (780) 415-8940; Robert: (780) 427-3855 FAX: (780) 422-6996

Ms. Brenda Nelson

of qualified personnel, an organizational structure that provides an appropriate division of responsibility and a strosystem of budgetary control

The ultimate responsibility for the financial statements lies with the Board of Trustees. The Board reviewed the audfinancial statements with management in detail and approved the financial statements for releas

The Board appoints external auditors to audit the financial statements and meets with the auditors to review their findinThe external auditors were given full access to school jurisdiction record

To the best of our knowledge and belief, these financial statements reflect, in all material respects, the financial positresults of operations and cash flows for the year in accordance with Canadian Public Sector Accounting Standar

BOARD CHAIR

"Original Signed"

school jurisdiction's transactions. The effectiveness of the control systems is supported by the selection and train

Mother Earth's Children's Charter School Society

RR1 Site 2 Box 42 Warburg, AB T0C 2T0

(780) 702-7531 (780) 848-2395 [email protected]

presented to Alberta Education have been prepared by school jurisdiction management which has responsibilitytheir preparation, integrity and objectivity. The financial statements, including notes, have been prepared in accordawith Canadian Public Sector Accounting Standards and follow format prescribed by Alberta Educatio

In fulfilling its reporting responsibilities, management has maintained internal control systems and procedures desigto provide reasonable assurance that the school jurisdiction's assets are safeguarded, that transactions are execuin accordance with appropriate authorization and that accounting records may be relied upon to properly reflect

Mother Earth's Children's Charter School Society

Board-approved Release Date

Signature

Signature

SignatureName

Name

Name

SUPERINTENDENT

Mr. Ed Wittchen

SECRETARY-TREASURER OR TREASURER

Ms. Anita LeMoignan

November 14, 2016

"Original Signed"

"Original Signed"

1


TABLE OF CONTENTS

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INDEPENDENT AUDITOR'S REPORT

NOTES TO THE FINANCIAL STATEMENTS

Schedule 3: SCHEDULE OF PROGRAM OPERATIONS

Schedule 2: SCHEDULE OF CAPITAL REVENUE

Schedule 1: SCHEDULE OF CHANGES IN ACCUMULATED SURPLUS

STATEMENT OF REMEASUREMENT GAINS AND LOSSES

STATEMENT OF CASH FLOWS

STATEMENT OF OPERATIONS

STATEMENT OF FINANCIAL POSITION

Schedule 4: SCHEDULE OF PLANT OPERATIONS AND MAINTENANCE EXPENSES

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

Schedule 6: SCHEDULE OF CAPITAL ASSETS

Schedule 7: SCHEDULE OF REMUNERATION AND MONETARY INCENTIVES

Schedule 8: UNAUDITED SCHEDULE OF FEE REVENUES

Schedule 9: UNAUDITED SCHEDULE OF DIFFERENTIAL FUNDING

Schedule 10: UNAUDITED SCHEDULE OF CENTRAL ADMINISTRATION EXPENSES

STATEMENT OF CHANGE IN NET FINANCIAL ASSETS (NET DEBT)

2

Independent Auditors' Report

To the Trustees of Mother Earth's Children's Charter School Society:

We have audited the accompanying financial statements of Mother Earth's Children's Charter School Society, which comprise the statement of financial position as at August 31 , 2016 and the statements of operations, cash flows, change in net financial assets (net debt) , remeasurement gains and losses, and schedules 1 to 7 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 auditing standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion .

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of Mother Earth's Children's Charter School Society as at August 31 , 2016 and the results of its operations, change in net financial assets and its cash flows for the year then ended in accordance with Canadian Public Sector Accounting Standards.

Leduc, Alberta November 14, 2016

3

MNPLLI' Chartered Professional Accountants

MNR


2016 2015

FINANCIAL ASSETS

Cash and cash equivalents (Schedule 5; Note 3) 74,583$ 165,691$

Accounts receivable (net after allowances) (Note 4) 9,992$ 14,658$

Portfolio investments (Schedule 5; Note 5) 251,430$ 251,430$

Other financial assets -$ -$

Total financial assets 336,005$ 431,779$

LIABILITIES

Bank indebtedness -$ -$

Accounts payable and accrued liabilities (Note 6) 34,528$ 55,278$

Deferred revenue (Note 7) 235,000$ 200,000$

Employee future benefit liabilities -$ -$

Liability for contaminated sites -$ -$

Other liabilities -$ -$

Debt

Supported: Debentures and other supported debt -$ -$

Unsupported: Debentures and capital loans -$ -$

Mortgages -$ -$

Capital leases -$ -$

Total liabilities 269,528$ 255,278$

66,477$ 176,501$

NON-FINANCIAL ASSETS

Tangible capital assets (Schedule 6)

Land -$ -$

Construction in progress -$ -$

Buildings -$

Less: Accumulated amortization -$ -$ -$

Equipment 126,907$

Less: Accumulated amortization (116,070)$ 10,837$ 14,391$

Vehicles 435,065$


Computer Equipment 138,145$


Total tangible capital assets 250,997$ 191,269$

Prepaid expenses (Note 8) 4,106$ 6,742$

Other non-financial assets -$ -$

Total non-financial assets 255,103$ 198,011$

Accumulated surplus (Schedule 1; Note 9) 321,580$ 374,512$

Accumulating surplus / (deficit) is comprised of:

Accumulated operating surplus (deficit) 321,580$ 374,512$

Accumulated remeasurement gains (losses) -$ -$

321,580$ 374,512$

Contractual obligations (Note 10)

Contingent liabilities

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

As at August 31, 2016 (in dollars)STATEMENT OF FINANCIAL POSITION

Net financial assets (debt)

4


Budget Actual Actual2016 2016 2015

Alberta Education 582,683$ 757,093$ 884,627$

Other - Government of Alberta -$ -$ -$

Federal Government and First Nations 882,049$ 505,427$ 941,029$

Other Alberta school authorities -$ -$ -$

Out of province authorities -$ -$ -$

Alberta municipalities-special tax levies -$ -$ -$

Property taxes -$ -$ -$

Fees 13,500$ -$ -$

Other sales and services -$ 22,912$ 27,016$

Investment income 1,800$ 3,673$ 3,350$

Gifts and donations 87,100$ 283,391$ 116,115$

Rental of facilities -$ -$ 4,055$

Fundraising -$ -$ -$

Gains on disposal of capital assets -$ -$ -$

Other revenue 1,000$ -$ -$

Total revenues 1,568,132$ 1,572,496$ 1,976,192$

Instruction - ECS 80,039$ 27,762$ 79,959$

Instruction - Grades 1 - 12 935,950$ 767,801$ 1,035,116$

Plant operations and maintenance 270,591$ 423,373$ 505,091$

Transportation 220,610$ 227,731$ 216,327$

Board & system administration 195,623$ 178,761$ 181,377$

External services -$ -$ -$

Total expenses 1,702,813$ 1,625,428$ 2,017,870$

(134,681)$ (52,932)$ (41,678)$

STATEMENT OF OPERATIONSFor the Year Ended August 31, 2016 (in dollars)

EXPENSES

Operating surplus (deficit)


REVENUES

5

154

2016 2015

CASH FLOWS FROM:

A. OPERATING TRANSACTIONS

Operating surplus (deficit) (52,932)$ (41,678)$

Add (Deduct) items not affecting cash:

Total amortization expense 48,202$ 55,682$

Gains on disposal of tangible capital assets -$ -$

Losses on disposal of tangible capital assets -$ -$

Expended deferred capital revenue recognition -$ -$

Deferred capital revenue write-down / adjustment -$ -$

Donations in kind -$ -$

Changes in:

Accounts receivable 4,666$ 3,297$

Prepaids 2,636$ (828)$

Other financial assets -$ -$

Non-financial assets -$ -$

Accounts payable, accrued and other liabilities (20,750)$ (39,381)$

Deferred revenue (excluding EDCR) 35,000$ 191,757$

Employee future benefit liabilities -$ -$

-$ -$

Total cash flows from operating transactions 16,822$ 168,849$

B. CAPITAL TRANSACTIONS

Purchases of tangible capital assets

Land -$ -$

Buildings -$ -$

Equipment -$ -$

Vehicles (107,930)$ -$

Computer equipment -$ (5,710)$

Net proceeds from disposal of unsupported capital assets -$ -$

-$ -$

Total cash flows from capital transactions (107,930)$ (5,710)$

C. INVESTING TRANSACTIONS

Purchases of portfolio investments -$ (200,000)$

Dispositions of portfolio investments -$ -$

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

Change in endowments -$ -$

-$ -$

Total cash flows from investing transactions -$ (200,000)$

D. FINANCING TRANSACTIONS

Issue of debt -$ -$

Repayment of debt -$ -$

-$ -$

Issuance of capital leases -$ -$

Repayment of capital leases -$ -$

-$ -$

-$ -$

Total cash flows from financing transactions -$ -$

Increase (decrease) in cash and cash equivalents (91,108)$ (36,861)$

Cash and cash equivalents, at beginning of year 165,691$ 202,552$

Cash and cash equivalents, at end of year 74,583$ 165,691$


For the Year Ended August 31, 2016 (in dollars)

School Jurisdiction Code:

STATEMENT OF CASH FLOWS

Other factors affecting debt (describe)

Other factors affecting capital leases (describe)

Other (describe)

Other (describe)

Other (describe)

Other (describe)

6

154

Budget 2016 2015

2016

Operating surplus (deficit) -$ (52,932)$ (41,678)$

Effect of changes in tangible capital assets

Acquisition of tangible capital assets -$ (107,930)$ (5,710)$

Amortization of tangible capital assets -$ 48,202$ 55,682$

Net carrying value of tangible capital assets disposed of -$ -$ -$

Write-down carrying value of tangible capital assets -$ -$ -$

Other changes -$ -$ -$

Total effect of changes in tangible capital assets -$ (59,728)$ 49,972$

Changes in:

Prepaid expenses -$ 2,636$ (828)$

Other non-financial assets -$ -$ -$

Net remeasurement gains and (losses) -$ -$ -$

Endowments -$ -$ -$

Increase (decrease) in net financial assets (net debt) -$ (110,024)$ 7,466$

Net financial assets (net debt) at beginning of year -$ 176,501$ 169,035$

Net financial assets (net debt) at end of year -$ 66,477$ 176,501$

School Jurisdiction Code:

STATEMENT OF CHANGE IN NET FINANCIAL ASSETS (NET DEBT)



7


2016 2015

Accumulated remeasurement gains (losses) at beginning of year -$ -$

-$ -$

-$ -$

Unrealized gains (losses) attributable to:

Portfolio investments -$ -$

-$ -$

Amounts reclassified to the statement of operations:

Portfolio investments -$ -$

-$ -$

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

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

STATEMENT OF REMEASUREMENT GAINS AND LOSSES



Other

Other

Prior Period Adjustment (Explain)

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10

154SCHEDULE 2

SCHEDULE OF CAPITAL REVENUE(EXTERNALLY RESTRICTED CAPITAL REVENUE ONLY)

for the Year Ended August 31, 2016 (in dollars)

Proceeds on UnexpendedDisposal of Deferred

Provincially Surplus from Provincially Capital Expended

Approved Provincially Funded Revenue from Deferred

& Funded Approved Tangible Capital Other Capital

Projects (A) Projects (B) Assets (C) Sources (D)Revenue

Balance at August 31, 2015 -$ -$ -$ -$ -$

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

Adjusted balance, August 31, 2015 -$ -$ -$ -$ -$

Add:

Unexpended capital revenue received from:

Alberta Education school building & modular projects (excl. IMR) -$

Infrastructure Maintenance & Renewal capital related to school facilities -$

Other sources: -$ -$


Unexpended capital revenue receivable from:

Alberta Education school building & modular (excl. IMR) -$



Interest earned on unexpended capital revenue -$ -$ -$ -$

Other unexpended capital revenue: -$

Proceeds on disposition of supported capital -$ -$

Insurance proceeds (and related interest) -$ -$

Donated tangible capital assets: -$

Alberta Infrastructure managed projects -$

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

Expended capital revenue - current year -$ -$ -$ -$ -$

Surplus funds approved for future project(s) -$ -$

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

Deduct:

Net book value of supported tangible capital dispositions or write-offs -$

Other adjustments: -$ -$ -$ -$

Capital revenue recognized - Alberta Education -$

Capital revenue recognized - Other Government of Alberta -$

Capital revenue recognized - Other revenue -$

Balance at August 31, 2016 -$ -$ -$ -$ -$ (A) (B) (C) (D)

Balance of Unexpended Deferred Capital Revenue at August 31, 2016 (A) + (B) + (C) + (D) -$

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 10(2)(a) of Disposition of Property Reg. 181/2010.

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

Unexpended Deferred Capital Revenue

11

SC

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4

2015

Pla

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13

SCHEDULE 5 School Jurisdiction Code: 154

Cash & Cash Equivalents 2015

Average Effective

(Market) Yield Cost Amortized Cost Amortized Cost

Cash .05 - 0.50% $ 74,583 $ 74,583 $ 165,691

Cash equivalents

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

Provincial, direct and guaranteed 0.00% - - -

Corporate 0.00% - - -

Municipal 0.00% - - -

Pooled investment funds 0.00% - - -

Other, including GIC's 0.00% - - -

Total cash and cash equivalents .05 - 0.50% $ 74,583 $ 74,583 $ 165,691

See Note 3 for additional detail.

Portfolio Investments 2015

Average Effective

(Market) Yield Cost Fair Value Balance Balance

Long term deposits 0.00% $ -

Guranteed interest certificates .60 - 1.50% 251,430 251,430 251,430 251,430

Fixed income securities

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

Provincial, direct and guaranteed 0.00% - - - -

Municipal 0.00% - - - -

Corporate 0.00% - - - -

Pooled investment funds 0.00% - - - -

Total fixed income securities 0.00% - - - -

Equities

Canadian 0.00% $ - $ - $ - $ -

Foreign 0.00% - - - -

Total equities 0.00% - - - -

Supplemental integrated pension plan assets 0.00% $ - $ - $ - $ -

Restricted investments 0.00% - - - -

Other (Specify) 0.00% - - - -

Other (Specify) 0.00% - - - -

Total portfolio investments .60 - 1.50% $ 251,430 $ 251,430 $ 251,430 $ 251,430

See Note 5 for additional detail.

The following represents the maturity structure for portfolio investments based on principal amount:

2016 2015

Under 1 year 0.0% 0.0%

1 to 5 years 100.0% 100.0%

6 to 10 years 0.0% 0.0%

11 to 20 years 0.0% 0.0%

Over 20 years 0.0% 0.0%

100.0% 100.0%

2016

2016

SCHEDULE OF CASH, CASH EQUIVALENTS, AND PORTFOLIO INVESTMENTSfor the Year Ended August 31, 2016 (in dollars)

14

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MOTHER EARTH’S CHILDREN’S CHARTER SCHOOL SOCIETY NOTES TO THE FINANCIAL STATEMENTS

AUGUST 31, 2016

17

1. Authority and purpose

Mother Earth’s Children’s Charter School Society (the “Society”) delivers educational programs under the authority of the School Act, Revised Statutes of Alberta 2000, Chapter S-3. It is not taxable under Section 149(1) of the Income Tax Act.

The Society receives funding for instruction and support under Education Grants Regulation (AR 120/2008). The regulation allows for the setting of conditions and use of grant monies. The Society is limited on certain funding allocations and administration expenses.

2. Significant accounting policies These financial statements are the representations of management, prepared in accordance with

Canadian public sector accounting standards established by the Public Sector Accounting Board (“PSAS”) of CPA Canada. The financial statements have, in management’s opinion, been properly prepared within reasonable limits of materiality and within the framework of the accounting policies summarized below:

Revenue recognition

Revenue is recorded on an accrual basis. Instruction and support allocations are recognized in the year to which they relate. Fees for services related to courses and programs are recognized as revenue when such courses and programs are delivered.

Eligibility criteria are criteria that the Society has to meet in order to receive certain contributions. Stipulations describe what the Society must perform in order to keep the contributions. Contributions without eligibility criteria or stipulations are recognized as revenue when the contributions are authorized by the transferring government or entity. Contributions with eligibility criteria but without stipulations are recognized as revenue when the contributions are authorized by the transferring government or entity and all eligibility criteria have been met.

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

Expenses

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


AUGUST 31, 2016

18

2. Significant accounting policies (continued)

Prepaid expenses

Certain expenditures incurred and paid before the close of the school year are for specific school supplies, which will be consumed subsequent to the year-end, and are accordingly recorded as prepaid expenses. Certain insurance expenses also fall into this category.

Portfolio investments

The Society has investments in GIC’s that have maturity dates greater than three months. GIC’s not quoted in an active market are reported at cost or amortized cost. Detailed information regarding portfolio investments is disclosed in Schedule 5.

Tangible capital assets

Tangible capital assets are initially recorded at cost which includes amounts that are directly attributable to acquisition, construction, development or betterment of the asset. Donated tangible capital assets are recorded at their fair market value at the date of donation, except in circumstances where fair value cannot be reasonably determined, when they are then recognized at nominal value. Transfers of tangible capital assets from related parties are recorded at original cost less accumulated amortization. Tangible capital assets are amortized on a straight-line basis over their estimated useful life as follows:

Equipment 10 years Vehicles 10 years Computer equipment 5 years

Only capital assets with a cost in excess of $5,000 are capitalized.

Vacation pay

Vacation pay is accrued in the period in which the employee earns the benefit.


AUGUST 31, 2016

19


Program reporting

The Society’s operations have been segmented as follows:

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

Grade 1 - 12 Instruction: The provision of grades 1 – 12 instructional services that fall under the basic public education mandate.

Plant Operations and Maintenance: The operation and maintenance of all school buildings and maintenance shop facilities as well as the operations of the Hot Lunch program.

Transportation: The provision of regular and special education bus services (to and from school), whether contracted or board operated, including transportation facility expenses.

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

External Services: All projects, activities, and services offered outside the public education mandate for ECS children and students in grades 1-12. Services offered beyond the mandate for public education are to be self-supporting, and Alberta Education funding may not be utilized to support these programs.

The allocation of revenue and expenses are reported by program, source, and object on the Schedule of Program Operations.

Pensions

Pension costs included in these financial statements comprise the cost of employer contributions for current service of employees during the year. The current and past service costs of the Alberta Teachers Retirement Fund are met by contributions by active members and the Government of Alberta. Under the terms of the Teachers Pension Plan Act, the Society does not make pension contributions for certificated staff. The Government portion of the current service contribution to the Alberta Teachers Retirement Fund on behalf of the Society is included in both revenue and expenses. For the school year ended August 31, 2016, the amount contributed to the Teachers’ Retirement Fund by the Province was $48,086 (2015 - $73,700).


AUGUST 31, 2016

20


Financial instruments

A contract establishing a financial instrument creates, at its inception, rights and obligations to receive or deliver economic benefits. The financial assets and financial liabilities portray these rights and obligations in the financial statements. The Society recognizes a financial instrument when it becomes a party to a financial instrument contact. The Society’s financial instruments consist of cash and cash equivalents, accounts receivable, portfolio investments and accounts payable and accrued liabilities. Unless otherwise indicated, it is management's opinion that the Society is not exposed to significant credit and liquidity risks, or market risk, which includes currency, interest rate and other price risks. Portfolio investments in equity instruments quoted in active markets and derivates are recorded at fair value. All other financial assets and liabilities are recorded at cost or amortized cost and the associated transaction costs are added to the carrying value of items in the cost or amortized cost upon initial recognition. The gain or loss arising from derecognition of a financial instrument is recognized in the statement of operations. Impairment losses such as write-downs or write-offs are reported in the statement of operations.

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.

Accounts receivable

Accounts receivable are shown net of allowance for doubtful accounts.

Deferred revenue

Deferred revenue includes contributions received for operations which have stipulations that meet the definition of a liability per Public Sector Accounting Standard (PSAS) PS 3200. These contributions are recognized by the Society once it has met all eligibility criteria to receive the contributions. When stipulations are met, deferred revenue is recognized as revenue in the fiscal year in a manner consistent with the circumstances and evidence used to support the initial recognition of the contributions as a liability.

Contributed services

Volunteers contribute a considerable number of hours per year to schools to ensure that certain programs are delivered, such as kindergarten, lunch services and the raising of school generated funds. Because of the difficulty of compiling these hours and the fact that these services are not otherwise purchased, contributed services are not recognized in the financial statements.


AUGUST 31, 2016

21

2. Significant accounting policies (continued) Contributed supplies

Supplies to support the hot lunch program are donated to the Society. These supplies consist of perishable food products nearing expiry, with no market value. Because of the difficulty in determining the value of the contributions due to the fact that there is no market for these products, contributed supplies are not recognized in the financial statements.

Measurement uncertainty

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

3. Cash and cash equivalents and bank indebtedness

The Society has negotiated an overdraft facility in the amount of $50,000 with Servus Credit Union with an overdraft interest rate of prime. At August 31, 2016, there were no drawings on this overdraft facility (2015 - $nil). At August 31, 2016 prime rate was 2.70% (2015 – 2.85%).

4. Accounts receivable

20162015

Gross Amount

Allowance for Doubtful

Accounts

Net Realizable

Value

Net Realizable

Value Federal government

9,145 - 9,145 5,931 Foundations

- - - 8,451 Other

847 - 847 276 Total $ 9,992 $ - $ 9,992 $ 14,658

5. Portfolio investments It is management’s opinion that there has been no impairment during the year.


AUGUST 31, 2016

22

6. Accounts payable and accrued liabilities

2016 2015

Federal government 16,578 22,845

Other salaries & benefit costs 1,676 1,660

Other trade payables and accrued liabilities 16,274 30,773

Total $ 34,528 $ 55,278

7. Deferred revenue

ADD: DEDUCT: SOURCE AND GRANT OR FUND TYPE DEFERRED 2015/2016 2015/2016 DEFERRED

REVENUE Restricted Restricted

Funds REVENUE

as at Funds

Received/ Expended as at

Aug. 31, 2015 Receivable (Paid /

Payable) Aug. 31, 2016

Unexpended deferred operating revenue

Other Deferred Revenue:

Donations 200,000 35,000 - 235,000

Total unexpended deferred operating revenue $ 200,000 $ 35,000 $ - $ 235,000

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

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

Total $ 200,000 $ 35,000 $ - $ 235,000

8. Prepaid expenses

2016 2015

Prepaid insurance $ 4,106 $ 4,696

Other (specify if significant) - 2,046

Other - -

Total $ 4,106 $ 6,742

9. Accumulated Surplus

There are no school generated funds included in accumulated surplus for the 2016 or 2015 year end.


AUGUST 31, 2016

23

10. Contractual obligations

2016 2015

Building projects $ - $ -

Building leases (1) 2,100,000 2,450,000

Service providers - -

Other (Specify) - -

Other - -

Total $ 2,100,000 $ 2,450,000

(1) Building lease: The Society is committed to a lease agreement with a related party, the Friends of MECCS Education Foundation, which expires January 31, 2022. As per the lease agreement, the Society shall pay $350,000 per annum as rent in respect of each year of the term. Each year this amount is subject to change based on Friends of MECCS Education Foundation board approval.

Building Projects

Building Leases

Service Providers

Other (Specify) Other

2016-2017 $ - $ 350,000 $ - $ - $ - 2017-2018 - 350,000 - - - 2018-2019 - 350,000 - - - 2019-2020 - 350,000 - - - 2020-2021 - 350,000 - - - Thereafter - 350,000 - - -

$ - $ 2,100,000 $ - $ - $ - 11. Economic dependence

The Society’s primary sources of revenue are received from the Province of Alberta and the Government of Canada. The Society’s ability to continue viable operations is dependent on this funding.


AUGUST 31, 2016

24

12. Related party transactions

All entities consolidated in the accounts of the Government of Alberta are related parties of school jurisdictions. These include government departments, health authorities, post-secondary institutions and other school jurisdictions in Alberta. All related party transactions are in the normal course of business and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties. Friends of MECCS Education Foundation (the “Foundation”) is a related party as its board of directors includes management and board members from the Society. These two entities have not been consolidated as it was determined that there is no common control. The Society and the Foundation pay expenses on behalf of one another, which are then fully reimbursed at cost. The Society also pays the Foundation rent for the use of the school and related property. These transactions are in the normal course of operations and have been measured at the exchange amount, which is the amount of consideration agreed to by the parties.


AUGUST 31, 2016

25

12. Related party transactions (continued)

Balances Transactions

Financial Assets (at cost

or net realizable

value) Liabilities (at

amortized cost)

Revenues Expenses

Government of Alberta (GOA):

Alberta Education

Accounts receivable / Accounts payable $ - $ - $ - $ -

Prepaid expenses / Deferred operating revenue - - - -

Unexpended deferred capital revenue - - - -

Expended deferred capital revenue

Grant revenue & expenses - - -

ATRF payments made on behalf of district 48,086

Other revenues & expenses - - 709,007 -

Other Alberta school jurisdictions - - - -

Alberta Treasury Board and Finance (Principal) - -

Alberta Treasury Board and Finance (Accrued interest)

- -

Alberta Health - - - -

Alberta Health Services - - - -

Enterprise and Advanced Education - - - -

Post-secondary institutions - - - -

Alberta Infrastructure - - - -

Human Services - - - -

Culture & Tourism - - - -

Other GOA ministry (Specify) - - - -

Other GOA ministry (Specify) - - - -

Other GOA ministries - - - -

Other:

Alberta Capital Financing Authority - - - -

Friends of MECCS Education Foundation - 750 107,930 200,000

Other Related Parties (Specify) - - - -

Other Related Parties - - - -

TOTAL 2015/2016 $ - $ 750 $ 865,023 $ 200,000

TOTAL 2014/2015 $ 8,451 $ 15,750 $ 884,627 $ 208,243


AUGUST 31, 2016

26

13. School generated funds

2016 2015

School Generated Funds, Beginning of Year $ - $ -

Gross Receipts:

Fees - -

Fundraising - -

Gifts and donations - -

Grants to schools - -

Other sales and services 2,514 13,756

Total gross receipts 2,514 13,756

Total Related Expenses and Uses of Funds -

Total Direct Costs Including Cost of Goods Sold to Raise Funds 2,514 13,756

School Generated Funds, End of Year $ - $ -

Balance included in Deferred Revenue* $ - $ -

Balance included in Accumulated Surplus (Operating Reserves)** $ - $ -

14. Budget amounts

The budget was prepared by the Society and approved by the Board of Trustees on June 22, 2015.

15. Going concern

These financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the payment of liabilities in the ordinary course of operations. Should the Society be unable to continue as a going concern, it may be unable to realize the carrying value of its assets and to meet its liabilities as they become due. The continuation of the Society is dependent upon the continuing availability of Federal and Provincial funding, the additional funding of third parties, and upon adherence to budgeted expenses. These financial statements do not reflect the adjustments or reclassification of assets and liabilities which would be necessary if the Society were unable to continue its operations.


AUGUST 31, 2016

27

16. Comparative figures Certain comparative figures have been reclassified to conform to current year presentation.

17. Additional information

The following information is required to comply with the disclosure requirements of the Charitable Fund-raising Act and Regulation: Gross contributions received were $209,650. Gross contributions were disposed of through various expenditures which have been detailed on

the schedule of program operations and were in excess of 10% of the gross contributions received.

There were no expenses incurred for the purposes of soliciting contributions. No amounts were paid as remuneration to employees whose principal duties involve fundraising.

School Jurisdiction Code: 154SCHEDULE 8

Actual 2016 Actual 2015

FEES

Transportation fees $0 $0

Basic instruction supplies (text books, including lost or replacement fees, course materials) $0 $0

Technology user fees $0 $0

Alternative program fees $0 $0

Fees for optional courses (band, art, etc.) $0 $0

Fees for students from other boards $0 $0

Tuition fees (international & out of province) $0 $0

Kindergarten & preschool $0 $0

Extracurricular fees (sports teams and clubs) $0 $0

Field trips (related to curriculum) $0 $0

Lunch supervision fees $0 $0

Locker rental; locks; student ID; uniforms; library, student union, and fitness fees $0 $0

Other (describe)* $0 $0








TOTAL FEES $0 $0

Actual 2016 Actual 2015

Cafeteria sales, hot lunch, milk programs $0 $0

Special events, graduation, tickets $0 $0

Student travel (international, recognition trips, non-curricular) $0 $0

$0 $0

$0 $0

$0 $0

Other (describe) $0 $0



TOTAL $0 $0

Please disclose amounts paid by parents of students that are recorded as "Other sales and services" or "Other revenue" (rather than fee revenue):

Sales or rentals of other supplies/services (clothing, agendas, yearbooks)

*PLEASE DO NOT USE "SCHOOL GENERATED FUNDS" AS A CATEGORY

UNAUDITED SCHEDULE OF FEE REVENUESfor the Year Ending August 31, 2016 (in dollars)

Adult education revenue

Child care & before and after school care

28

SCHEDULE 9 154

Funded Students in Program 19 Federally Funded Students 49 REVENUES

Alberta Education allocated funding 20,617$ -$ -$ -$ -$ Other funding allocated by the board to the program -$ -$ -$ -$ -$ TOTAL REVENUES 20,617$ -$ -$ -$ -$

EXPENSES (Not allocated from BASE, Transportation, or other funding)Instructional certificated salaries & benefits 13,525$ -$ -$ -$ Instructional non-certificated salaries & benefits 4,867$ -$ -$ -$ SUB TOTAL 18,392$ -$ -$ -$ Supplies, contracts and services 19,366$ -$ -$ -$ Program planning, monitoring & evaluation -$ -$ -$ -$ Facilities (required specifically for program area) 2,837$ -$ -$ -$ Administration (administrative salaries & services) 2,341$ -$ -$ -$ Other (please describe) -$ -$ -$ -$ Other (please describe) -$ -$ -$ -$ TOTAL EXPENSES 42,936$ -$ -$ -$ NET FUNDING SURPLUS (SHORTFALL) (22,319)$ -$ -$ -$

UNAUDITED SCHEDULE OF DIFFERENTIAL FUNDINGfor the Year Ended August 31, 2016 (in dollars)

PROGRAM AREA

First Nations, Metis & Inuit

(FNMI)ECS Program Unit

Funding (PUF)

English as a Second Language

(ESL)Inclusive

Education

Small Schools by Necessity

(Revenue only)

29

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AUDITED FINANCIAL STATEMENTS FOR THE YEAR ......Contractual obligations (Note 10) Contingent...

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Transcript of AUDITED FINANCIAL STATEMENTS FOR THE YEAR ......Contractual obligations (Note 10) Contingent...