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The Board of Education of the Saskatoon School Division No Consolidated Financial Statements of THE BOARD OF EDUCATION OF THE SASKATOON SCHOOL DIVISION NO. 13 OF SASKATCHEWAN Year ended August 31, 2016 Deloitte LLP Suite 400, PCS Tower 122 – 1st Avenue S Saskatoon, SK S7K 7E5 Canada Tel: 306-343-4400 Fax: 306-343-4480 INDEPENDENT AUDITOR’S REPORT www.deloitte.ca To the Trustees of the Board of Education of the Saskatoon School Division No. 13 of Saskatchewan (“the School Division”): We have audited the accompanying consolidated financial statements of the School Division, which comprise the consolidated statement of financial position as at August 31, 2016, the consolidated statements of operations and accumulated surplus from operations, remeasurement gains, changes in net financial assets and cash flows for the year then ended, and notes, comprising 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 consolidated financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s 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 our 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, we consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the School Division as at August 31, 2016, and its consolidated results of operations, consolidated remeasurement gains, and the changes in its consolidated net financial assets and its consolidated cash flows for the year then ended in accordance with Canadian public sector accounting standards. Chartered Professional Accountants Licensed Professional Accountants Saskatoon, Saskatchewan November 29, 2016 THE BOARD OF EDUCATION OF THE SASKATOON SCHOOL DIVISION NO. 13 OF SASKATCHEWAN Consolidated Statement of Financial Position as at August 31, 2016 2016 2015 Financial Assets Cash and Cash Equivalents 19,470,805 22,879,623 Accounts Receivable (Note 8) 2,743,637 2,595,693 Portfolio Investments (Note 4) 24,519,512 19,500,000 Total Financial Assets 46,733,954 44,975,316 Liabilities Accounts Payable and Accrued Liabilities (Note 9) 5,892,809 7,787,933 Long-Term Debt (Note 10) 12,834,183 17,715,538 Liability for Employee Future Benefits (Note 6) 5,392,300 5,194,700 Deferred Revenue (Note 11) 7,207,872 7,423,585 Total Liabilities 31,327,164 38,121,756 Net Financial Assets 15,406,790 6,853,560 Non-Financial Assets Tangible Capital Assets (Schedule C) 253,048,388 187,707,101 Prepaid Expenses 522,620 542,455 Total Non-Financial Assets 253,571,008 188,249,556 Accumulated Surplus (Note 14) 268,977,798 195,103,116 Accumulated Surplus is Comprised of: Accumulated Surplus from Operations 268,968,371 195,103,116 Accumulated Remeasurement Gains and Losses 9,427 - Total Accumulated Surplus (Note 14) 268,977,798 195,103,116 Contractual Obligations and Commitments (Note 17) The accompanying notes and schedules are an integral part of these statements. THE BOARD OF EDUCATION OF THE SASKATOON SCHOOL DIVISION NO. 13 OF SASKATCHEWAN Consolidated Statement of Operations and Accumulated Surplus from Operations for the year ended August 31, 2016 2016 2016 2015 Budg et Actual Actual (Note 15) REVENUES Property Taxation 109,348,585 109,832,637 106,259,797 Gran t s 189,851,406 191,409,360 125,118,559 Tuition and Related Fees 3,387,880 2,883,699 3,368,794 School Generated Funds 4,955,000 5,081,969 5,006,384 Complementary Services (Note 12) 3,394,896 3,219,204 3,073,127 External Services (Note 13) 6,789,704 9,085,202 7,432,133 Other 1,263,000 1,321,128 1,306,804 Total Revenues (Schedule A) 318,990,471 322,833,199 251,565,598 EXP ENS ES Governance 833,147 887,883 741,120 Administration 6,898,819 6,372,234 6,522,780 Instruction 186,009,381 182,932,354 176,765,027 Plant 35,368,997 34,054,924 34,931,496 Transportation 7,273,559 6,777,884 6,607,151 Tuition and Related Fees 283,000 325,496 281,020 School Generated Funds 4,955,000 5,583,073 5,280,105 Complementary Services (Note 12) 3,480,379 3,483,102 3,191,910 External Services (Note 13) 6,853,806 7,974,085 6,571,074 Other Expenses 581,500 576,909 715,888 Total Expenses (Schedule B) 252,537,588 248,967,944 241,607,571 Operating Surplus for the Year 66,452,883 73,865,255 9,958,027 Accumulated Surplus from Operations, Beginning of Year 195,103,116 195,103,116 185,145,089 Accumulated Surplus from Operations, End of Year 261,555,999 268,968,371 195,103,116 The accompanying notes and schedules are an integral part of these statements. THE BOARD OF EDUCATION OF THE SASKATOON SCHOOL DIVISION NO. 13 OF SASKATCHEWAN Consolidated Statement of Remeasurement Gains for the year ended August 31, 2016 2016 2015 Accumulated Remeasurement Gains (Losses), Beginning of Year - - Unrealized gains attributable to: Portfolio investments 9,427 - Net remeasurement gains for the year 9,427 - Accumulated Remeasurement Gains, End of Year 9,427 - The accompanying notes and schedules are an integral part of these statements. THE BOARD OF EDUCATION OF THE SASKATOON SCHOOL DIVISION NO. 13 OF SASKATCHEWAN Consolidated Statement of Changes in Net Financial Assets for the year ended August 31, 2016 2016 2016 2015 Budg et Actual Actual (Note 15) Net Financial Assets, Beginning of Year 6,853,560 6,853,560 4,101,068 Changes During the Year Operating Surplus for the Year 66,452,883 73,865,255 9,958,027 Acquisition of Tangible Capital Assets (Schedule C) (81,107,012) (77,327,211) (20,698,627) Amortization of Tangible Capital Assets (Schedule C) 12,380,000 11,985,924 13,493,287 Net Change in Other Non-Financial Assets - 19,835 (195) (2,274,129) 8,543,803 2,752,492 Net Remeasurement Gains - 9,427 - Change in Net Financial Assets (2,274,129) 8,553,230 2,752,492 Net Financial Assets, End of Year 4,579,431 15,406,790 6,853,560 The accompanying notes and schedules are an integral part of these statements. THE BOARD OF EDUCATION OF THE SASKATOON SCHOOL DIVISION NO. 13 OF SASKATCHEWAN Consolidated Statement of Cash Flows for the year ended August 31, 2016 2016 2015 OPERATING ACTIVITIES Operating Surplus for the Year 73,865,255 9,958,027 Add (Deduct) Non-Cash Items Included in Surplus (Schedule D) (58,407,147) 8,298,882 Net Change in Non-Cash Operating Activities (Schedule E) (2,041,346) (419,758) Cash Provided by Operating Activities 13,416,762 17,837,151 CAPITAL ACTIVITIES Cash Used to Acquire Tangible Capital Assets (6,934,140) (14,981,031) Cash Used by Capital Activities (6,934,140) (14,981,031) INVESTING ACTIVITIES Cash Used to Acquire Portfolio Investments (24,510,085) (19,500,000) Proceeds on Disposal of Portfolio Investments 19,500,000 20,000,000 Cash Provided (Used) by Investing Activities (5,010,085) 500,000 FINANCING ACTIVITIES Proceeds from Issuance of Short-Term Loans - 5,076,098 Repayment of Long-Term Debt (4,881,355) (4,448,435) Cash Provided (Used) by Financing Activities (4,881,355) 627,663 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (3,408,818) 3,983,783 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 22,879,623 18,895,840 CASH AND CASH EQUIVALENTS, END OF YEAR 19,470,805 22,879,623 The accompanying notes and schedules are an integral part of these statements. THE BOARD OF EDUCATION OF THE SASKATOON SCHOOL DIVISION NO. 13 OF SASKATCHEWAN NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at August 31, 2016 1. AUTHORITY AND PURPOSE The school division operates under the authority of The Education Act, 1995 of Saskatchewan as a corporation under the name of “The Board of Education of the Saskatoon School Division No. 13 of Saskatchewan” and operates as “Saskatoon Public Schools”. The school division provides education services to residents within its geographic region and is governed by an elected board of trustees. The school division is funded mainly by grants from the Government of Saskatchewan and a levy on the property assessment included in the school division’s boundaries at mill rates determined by the provincial government.
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