renfrew county catholic district school board consolidated...

Renfrew County Catholic District School Board

Consolidated Financial Statements

For the year ended 31 August 2016

MACKILLICAN & ASSOCIATESCHARTERED PROFESSIONAL ACCOUNTANTS


Financial Statements Index


Page

Independent Auditor's Report 1

Consolidated Statement of Financial Position 2

Consolidated Statement of Operations 3

Consolidated Statement of Change in Net Debt 4

Consolidated Statement of Cash Flows 5

Notes to the Consolidated Financial Statements 6 - 20

MACKILLICAN & ASSOCIATES

CHARTERED PROFESSIONAL ACCOUNTANTS

1

INDEPENDENT AUDITOR'S REPORT

To the Board of Trustees,Renfrew County Catholic District School Board.

We have audited the accompanying consolidated financial statements of the Renfrew County CatholicDistrict School Board, which comprise the consolidated statement of financial position as at 31 August 2016,the consolidated statements of operations, change in net debt and cash flows for the year then ended, and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statementsin accordance with the basis of accounting described in Note 1 to the consolidated financial statements, andfor such internal control as management determines is necessary to enable the preparation of consolidatedfinancial 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 consolidated financial statements based on our audit. Weconducted our audit in accordance with Canadian Generally Accepted Auditing Standards. Those standardsrequire that we comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the consolidated financial statements are free from material misstatement.

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

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

Opinion

In our opinion, the consolidated financial statements of the Renfrew County Catholic District School Board asat 31 August 2016 are prepared, in all material respects, in accordance with the basis of accounting describedin Note 1 to the consolidated financial statements.

Emphasis of Matter

Without modifying our opinion, we draw attention to Note 1 to the consolidated financial statements whichdescribes the basis of accounting used in the preparation of these consolidated financial statements and thesignificant differences between such basis of accounting and Canadian Public Sector Accounting Standards.

RENFREW, Ontario. Chartered Professional Accountants,

16 January 2017. Licensed Public Accountants.

620 Barnet Blvd. 14 Madawaska Street – P.O. Box 94Renfrew ON. K7V 0A8 Arnprior ON. K7S 3H2

T: 613.432.3664 | F: 613.432.8424 T: 613.623.7926 | F: 613.623.7927Email: [email protected] | Website: www.mackillicans.com

3


Consolidated Statement of Operations

For the year ended 31 August 2016(with 2016 budget and 2015 actual figures for comparison)

2016Budget

2016Actual

2015Actual

Revenue:Provincial grants - student needs $ 57,922,372 $ 58,912,918 $ 58,451,069 - other 1,121,185 1,256,841 1,293,837Federal grants and fees 163,300 181,196 207,744Other revenues - school boards 6,470 4,908Other fees and revenues 225,400 1,231,292 1,221,564Investment income 150,000 133,336 156,392School fundraising 1,362,000 1,720,450 2,045,472Recognition of deferred capital contributions 2,188,363 2,667,551 2,195,998

$ 63,132,620 $ 66,110,054 $ 65,576,984

Expenses:Instruction $ 45,280,274 $ 46,324,054 $ 46,288,842Pupil accommodation 8,853,498 9,761,890 8,960,279Transportation 4,216,501 4,376,658 4,209,935Administration 2,875,564 2,907,799 2,692,505Other operating expenses 766,332 766,332 766,332School funded activities 1,362,000 1,763,763 1,973,681

$ 63,354,169 $ 65,900,496 $ 64,891,574

Surplus (deficit) for the year $ (221,549) $ 209,558 $ 685,410

Accumulated surplus, beginning of year 11,540,592 11,540,592 10,855,182

Accumulated surplus, end of year $ 11,319,043 $ 11,750,150 $ 11,540,592

(See accompanying notes)



4


Consolidated Statement of Change in Net Debt

For the year ended 31 August 2016(with 2015 figures for comparison)

2016 2015

Annual surplus $ 209,558 $ 685,410

Tangible capital assets:Acquisition of tangible capital assets $ (3,881,363) $ (4,858,508)Amortization of tangible capital assets 2,556,737 2,337,417Loss on disposal of tangible capital asset 275,600Proceeds on disposal of tangible capital assets 134,569

$ (914,457) $ (2,521,091)

Other non-financial assets:Decrease (increase) in inventories of supplies $ (54,520) $ 6,330Decrease (increase) in prepaid expenses (17,510) 1,065

$ (72,030) $ 7,395

Increase in net debt $ (776,929) $ (1,828,286)

Net debt, beginning of year (38,264,409) (36,436,123)

Net debt, end of year $ (39,041,338) $ (38,264,409)




5


Consolidated Statement of Cash Flows

For the year ended 31 August 2016(with 2015 figures for comparison)

2016 2015Cash flows from operating activities:

Surplus for the year $ 209,558 $ 685,410

Add (deduct) items not involving cash:Amortization of tangible capital assets 2,556,737 2,337,417Loss on disposal of tangible capital asset 275,600Deferred capital contributions revenue net of loss on disposal (2,391,951) (2,195,998)

Net change in non cash working capital balances related to operations:

Decrease (increase) in accounts receivable 392,927 (274,618)Increase (decrease) in accounts payable and accrued

liabilities 2,148,802 (934,069)Increase (decrease) in deferred revenue (382,028) 396,817Increase (decrease) in employee future benefits (562,435) (135,903)Decrease (increase) in prepaid expenses (17,510) 1,065Decrease (increase) in inventories of supplies (54,520) 6,330

Cash flows from (used for) operating activities $ 2,175,180 $ (113,549)

Cash flows used for capital activities:Proceeds on disposal of tangible capital assets $ 134,569Cash used to acquire tangible capital assets (3,881,363) $ (4,858,508)

Cash flows used for capital activities $ (3,746,794) $ (4,858,508)

Cash flows from financing activities:Long term debt repayments $ (542,100) $ (518,102)Decrease (increase) in long term receivable - Government

of Ontario 1,006,982 1,014,480Additions to (disposal from) deferred capital contributions 3,471,193 4,279,355Increase (decrease) in deferred revenues - capital (1,815,142) (538,778)

Cash flows from financing activities $ 2,120,933 $ 4,236,955

Net increase (decrease) in cash and cash equivalents during the year $ 549,319 $ (735,102)Cash and cash equivalents at the beginning of the year 14,892,461 15,627,563

Cash and cash equivalents at the end of the year $ 15,441,780 $ 14,892,461




6Renfrew County Catholic District School Board

Notes to the Consolidated Financial Statements


1. SIGNIFICANT ACCOUNTING POLICIES

The consolidated financial statements of the Renfrew County Catholic District School Board (the "Board")are prepared by management in accordance with the basis of accounting described below:

a) Basis of Accounting:

The consolidated financial statements have been prepared in accordance with the FinancialAdministration Act supplemented by Ontario Ministry of Education memorandum 2004:B2 andOntario Regulation 395/11 of the Financial Administration Act.

The Financial Administration Act requires that the consolidated financial statements be prepared inaccordance with the accounting principles determined by the relevant Ministry of the Province ofOntario. A directive was provided by the Ontario Ministry of Education within memorandum 2004:B2requiring school boards to adopt Canadian Public Sector Accounting Standards commencing with theiryear ended 31 August 2004 and that changes may be required to the application of these standards as aresult of regulation.

In 2011, the government passed Ontario Regulation 395/11 of the Financial Administration Act. TheRegulation requires that contributions received or receivable for the acquisition or development ofdepreciable tangible capital assets and contributions of depreciable tangible capital assets for use inproviding services, be recorded as deferred capital contributions and be recognized as revenue in thestatement of operations over the periods during which the asset is used to provide service at the samerate that amortization is recognized in respect of the related asset. The Regulation further requires thatif the net book value of the depreciable tangible capital asset is reduced for any reason other thandepreciation, a proportionate reduction of the deferred capital contribution along with a proportionateincrease in the revenue be recognized. For Ontario school boards, these contributions includegovernment transfers, externally restricted contributions and, historically, property tax revenue.

The accounting policy requirements under Regulation 395/11 are significantly different from therequirements of Canadian Public Sector Accounting Standards which require that:

government transfers, which do not contain a stipulation that creates a liability, be recognized as

revenue by the recipient when approved by the transferor and the eligibility criteria have been met

in accordance with public sector accounting standard PS3410;

externally restricted contributions be recognized as revenue in the period in which the resources are

used for the purpose or purposes specified in accordance with public sector accounting standard

PS3100; and

property taxation revenue be reported as revenue when received or receivable in accordance with

public sector accounting standard PS3510.

As a result, revenue recognized in the statement of operations and certain related deferred revenues anddeferred capital contributions would be recorded differently under Canadian Public Sector AccountingStandards.






b) Reporting Entity:

The consolidated financial statements reflect the assets, liabilities, revenues and expenses of thereporting entity. The reporting entity is comprised of all organizations accountable for theadministration of their financial affairs and resources to the Board and which are controlled by theBoard.

School generated funds, which include the assets, liabilities, revenues and expenses of variousorganizations that exist at the school level and which are controlled by the Board are reflected in theconsolidated financial statements.

Consolidated entities:

School Generated Funds

Proportionately consolidated entities:

Renfrew County Joint Transportation Consortium

Interdepartmental and interorganizational transactions and balances between these organizations areeliminated.

c) Trust Funds:

Trust funds and their related operations administered by the Board are not included in the consolidatedfinancial statements, as these funds are not controlled by the Board.

d) Cash and Cash Equivalents:

Cash and cash equivalents are comprised of cash on hand, cash in bank and short term investments.Short term investments are highly liquid, subject to insignificant risk of changes in value and have ashort maturity term of less than 90 days.

e) Investments:

Temporary investments consist of marketable securities which are liquid short term investments withmaturities of between three months and one year at the date of acquisition, and are carried on theConsolidiated Statement of Financial Position at the lower of cost or market value.

Long term investments consist of investments that have maturities of more than one year. Long terminvestments are recorded at cost, and assessed regularly for permanent impairment.

f) Deferred Revenue:

Certain amounts are received pursuant to legislation, regulation or agreement and may only be used inthe conduct of certain programs or in the delivery of specific services and transactions. These amountsare recognized as revenue in the fiscal year the related expenses are incurred or services performed.






g) Deferred Capital Contributions:

Contributions received or receivable for the purpose of acquiring or developing a depreciable tangiblecapital asset for use in providing services, or any contributions in the form of depreciable tangibleassets received or receivable for use in providing services, shall be recognized as deferred capitalcontribution as defined in Ontario Regulation 395/11 of the Financial Administration Act. Theseamounts are recognized as revenue at the same rate as the related tangible capital asset is amortized.The following items fall under this category:

Government transfers received or receivable for capital purposes

Other restricted contributions received or receivable for capital purposes

Property taxation revenues which were historically used to fund capital assets

h) Employee Future Benefits:

The Board provides defined retirement and other future benefits to specified employee groups. Thesebenefits include pension, life insurance and health care benefits, dental benefits, retirement gratuity,workers' compensation and long term disability benefits. The Board accrues its obligation for theseemployee benefits.

The Board has adopted the following policies with respect to accounting for these employee benefits:

i) The costs of self-insured retirement and other employee future benefit plans are actuariallydetermined using management’s best estimate of salary escalation, accumulated sick days atretirement, insurance and health care cost trends, disability recovery rates, long term inflation ratesand discount rates. The cost of retirement gratuities are actuarially determined using the employee'ssalary, banked sick days and years of service as at 31 August 2012 and management's best estimateof discount rates. Any actuarial gains and losses arising from changes to the discount rate areamortized over the expected average remaining service life of the employee group.

For self-insured retirement and other employee future benefits that vest or accumulate over theperiods of service provided by employees, such as retirement gratuities and life insurance andhealth care benefits for retirees, the cost is actuarially determined using the projected benefitsmethod prorated on service. Under this method, the benefit costs are recognized over the expectedaverage service life of the employee group.

For those self-insured benefit obligations that arise from specific events that occur from time totime, such as obligations for workers’ compensation, long term disability and life insurance andhealth care benefits for those on disability leave, the cost is recognized immediately in the periodthe events occur. Any actuarial gains and losses that are related to these benefits are recognizedimmediately in the period they arise.

ii) The costs of multi-employer defined pension plan benefits, such as the Ontario MunicipalEmployees Retirement System pensions, are the employer’s contributions due to the plan in the period;

iii) The costs of insured benefits are the employer’s portion of insurance premiums owed for coverage of employees during the period.






i) Government Transfers:

Government transfers, which include legislative grants, are recognized in the consolidated financialstatements in the period in which events giving rise to the transfer occur, providing the transfers areauthorized, any eligibility criteria have been met and reasonable estimates of the amount can be made.If government transfers contain stipulations which give rise to a liability, they are deferred andrecognized in revenue when the stipulations are met.

Government transfers for capital are deferred as required by Regulation 396/11, recorded as deferredcapital contributions (DCC) and recognized as revenue in the consolidated statement of operations atthe same rate and over the same periods as the asset is amortized.

j) Tangible Capital Assets:

Tangible capital assets are recorded at historical cost less accumulated amortization. Historical costincludes amounts that are directly attributable to acquisition, construction, development or bettermentof the asset, as well as interest related to financing during construction. When historical cost recordswere not available, other methods were used to estimate the costs and accumulated amortization.

Leases which transfer substantially all of the benefits and risks incidental to ownership of property areaccounted for as leased tangible capital assets. All other leases are accounted for as operating leasesand the related payments are charged to expenses as incurred.

Tangible capital assets, excluding land, are amortized on a straight-line basis over their estimated useful lives as follows:

Buildings and building improvements 40 yearsPortable structures 20 yearsLand improvements with finite lives 15 yearsFurniture 10 yearsEquipment 5-15 yearsComputer hardware 5 yearsComputer software 5 years

Assets under construction and assets that relate to pre-acquisition and pre-construction costs are not amortized until the asset is available for productive use.

Land permanently removed from service and held for resale is recorded at the lower of cost and estimated net realizable value. Cost includes amounts for improvements to prepare the land for sale or servicing. Buildings permanently removed from service and held for resale cease to be amortized and are recorded at the lower of carrying value and estimated net realizable value. Tangible capital assets which meet the criteria for financial assets are reclassified as "assets held for sale" on the consolidated statement of financial position.

Works of art and cultural and historic assets are not recorded as assets in these consolidated financial statements.






k) Investment Income:

Investment income is reported as revenue in the period earned.

When required by the funding government or related Act, investment income earned on externally restricted funds such as pupil accommodation, education development charges and special education forms part of the respective deferred revenue balances.

l) Budget Figures:

Budget figures have been provided for comparison purposes and have been derived from the budgetapproved by the Trustees. The budget approved by the Trustees is developed in accordance with theprovincially mandated funding model for school boards and is used to manage program spendingwithin the guidelines of the funding model. The budget figures are unaudited.

m) Use of Estimates:

The preparation of consolidated financial statements in conformity with the basis of accountingdescribed in Note 1 requires management to make estimates and assumptions that affect the reportedamounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of theconsolidated financial statements, and the reported amounts of revenues and expenses during the year.Actual results could differ from these current estimates. These estimates are reviewed periodically and,as adjustments become necessary, they are reported in net expenditures in the periods in which theybecome known. Significant estimates include assumptions used in estimating the collectability ofaccounts receivable to determine the allowance for doubtful accounts, in estimating provisions foraccrued liabilities and in performing actuarial valuations of employee future benefits liabilities.

n) Long Term Debt:

Long term debt is recorded net of related sinking fund asset fund balances.

o) Property Tax Revenue

Under Public Sector Accounting Standards, the entity that determines and sets the tax levy records therevenue in the financial statements, which in the case of the Board, is the Province of Ontario. As aresult, property tax revenue received from the municipalities is recorded as part of ProvincialLegislative Grants.

2. ACCOUNTS RECEIVABLE

Accounts receivable consists of the following:2016 2015

Government of Canada $ 979,444 $ 942,307Government of Ontario 254,910 550,085Local governments 897,947 940,540School boards 4,884 281Other 229,858 326,757

$ 2,367,043 $ 2,759,970






3. LONG TERM RECEIVABLE - GOVERNMENT OF ONTARIO

The Province of Ontario replaced variable capital funding with a one-time debt support grant in 2009 - 2010. TheRenfrew County Catholic District School Board received a one-time grant that recognizes capital debt as of 31 August 2010 that is supported by the existing capital programs. The Board will receive this grant in cash over theremaining term of the existing capital debt instruments. The Board may also receive yearly capital grants to supportcapital programs which would be reflected in this long term receivable.

The Board has a long term receivable from the Province of Ontario of $ 15,560,018 (2015 - $ 16,567,000) with respectto capital grants.

4. DEFERRED REVENUE

Revenues received and that have been set aside for specific purposes by legislation, regulation or agreement are includedin deferred revenue and reported on the consolidated statement of financial position.

Deferred revenue set-aside for specific purposes by legislation, regulation or agreement as at 31 August 2016 iscomprised of:

Balanceas at

31 August2015

ExternallyRestrictedRevenue

andInvestment

Income

RevenueRecognized

in thePeriod

Transfer toDeferredCapital

Contributions

Balanceas at

31 August2016

Legislative grants:Special Education/SEA formula

based funding $ 375,997 $ 7,511,661 $ 7,513,039 $ 374,619Mental health leader 12,880 119,832 87,280 45,432Student Achievement Envelope 589,079 589,079School Condition Improvement 1,822,703 $ 1,275,805 546,898School renewal 1,056,694 1,100,265 1,774,171 382,788Minor tangible capital assets 1,456,136 1,398,469 57,667Interest on capital 687,161 687,161Temporary accommodation 21,000 21,000

$ 3,268,274 $ 11,485,134 $ 10,296,028 $ 3,107,643 $ 1,349,737

Other Ministry of Education grants:Misc. EPO $ 695,142 $ 1,069,325 $ 1,152,894 $ - $ 611,573

Third Party grants:Operating $ 412,281 $ 19,696 $ 349,329 $ - $ 82,648Capital 134,569 134,569

$ 412,281 $ 154,265 $ 349,329 $ - $ 217,217

$ 4,375,697 $ 12,708,724 $ 11,798,251 $ 3,107,643 $ 2,178,527






5. DEFERRED CAPITAL CONTRIBUTIONS

Deferred capital contributions include grants and contributions received that are used for the acquisitionof tangible capital assets in accordance with Ontario Regulation 395/11 that have been expended by yearend. The contributions are amortized into revenue over the life of the asset acquired.

2016 2015

Balance at the beginning of the year $ 45,690,018 $ 43,606,661Additions to deferred capital contributions 3,881,362 4,279,355Revenue recognized in the year (2,391,951) (2,195,998)Disposal of tangible capital assets (410,169)

Balance at the end of the year $ 46,769,260 $ 45,690,018

6. EMPLOYEE FUTURE BENEFITS

The Board provides defined retirement and other future benefits to specified employee groups. Thesebenefits include pension, retirement gratuity, service awards, workers' compensation and long termdisability benefits.

Plan Changes:In 2013, changes were made to the Board's short term leave and disability plan. Under the new short termleave and disability plan, eleven unused sick leave days may be carried forward into the following yearonly, to be used to top-up benefits received under the short term leave and disability plan in that year. Anew provision was established as of 31 August 2013 representing the expected usage of sick days thathave been carried forward for benefit top-up in the following year. Retirement life insurance and healthcare benefits have been grandfathered to existing retirees and employees who retired in 2012 - 2013.Effective 1 September 2013, any new retiree accessing Retirement Life Insurance and Health CareBenefits paid the full premiums for such benefits and are included in a separate experience pool that isself-funded.

(a) Retirement Benefits:(i) Ontario Teachers' Pension Plan:

Teachers and related employee groups are eligible to be members of Ontario Teachers' PensionPlan. Employer contributions for these employees are provided directly by the Province ofOntario. The pension costs and obligations related to this plan are the direct responsibility ofthe Province. Accordingly, no costs or liabilities related to this plan are included in the Board’sconsolidated financial statements.

(ii) Ontario Municipal Employees Retirement System: All non-teaching and support staff employees of the Board are eligible to be members of the

Ontario Municipal Employees' Retirement System (OMERS), a multi-employer pension plan.The plan provides defined pension benefits to employees based on their length of service andrates of pay. The Board contributions equal the employee contributions to the plan. During theyear ended 31 August 2016, the Board contributed $ 731,369 (2015 - $ 687,099) to the plan.As this is a multi-employer pension plan, these contributions are the Board’s pension benefitexpenses. No pension liability for this type of plan is included in the Board’s consolidatedfinancial statements.






(iii) Retirement Gratuities:The Board provides retirement gratuities to certain groups of employees hired prior to specificdates. The Board provides these benefits through an unfunded defined benefit plan. The benefitcosts and liabilities related to this plan are included in the Board's consolidated financialstatements. In the prior year, the amount of the gratuities payable to eligible employees atretirement was based on their salary, accumulated sick days, and years of service at retirement.As a result of the plan change, the amount of the gratuities payable to eligible employees atretirement is now based on their salary, accumulated sick days, and years of service at 31 August2012.

1. Voluntary Retirement Gratuity Early Payout Provision:During 2015 - 2016, COPE and CUPE ratified agreements at the local and central levelwhich included a voluntary retirement gratuity early payout provision. During 2015 -2016,OECTA ratified an agreement at the central level and in 2016 - 2017 ratified an agreementat the local level. The provision provided OECTA, COPE and CUPE members the optionof receiving a discounted frozen retirement gratuity benefit payment by 31 August 2016 orthe first pay period in September 2016 for CUPE or within 31 days of local ratification byOECTA.

This provision was also made available to all non-unionized school board employees,including principals and vice-principals. These payments will be made by 31 August2016.

Some employees took the early payouts, which were discounted from the current financialstatement carrying values. As a result, the reduction in the liability for those members whotook the voluntary retirement gratuity early payout option was accompanied by actuarialgain in the Board's 2015 - 2016 year financial statements. This resulted in the Board'semployee future benefit liability decreasing by $ 60,768.

(b) Other Employee Future Benefits:(i) Workplace Safety and Insurance Board Obligations:

The Board is a Schedule 2 employer under the Workplace Safety and Insurance Act and, as such, assumes responsibility for the payment of all claims to its injured workers under the Act. The Board does not fund these obligations in advance of payments made under the Act. The benefit costs and liabilities related to this plan are included in the Board’s consolidated financial statements. Plan changes made in 2012 requires school boards to provide salary top-up to a maximum of 4 1/2 years for employees receiving payments from the Workplace Safety and Insurance Board, where the previously negotiated collective agreement included such provision.

(ii) Sick Leave Benefits:A maximum of eleven unused sick leave days from the current year may be carried forward intothe following year only, to be used to top-up salary for illness paid through the short-term leaveand disability plan in that year. The benefit costs expensed in the consolidated financialstatements are $ 22,515 (2015 - $ 23,010).

For accounting purposes, the valuation of the accrued benefit obligation for the sick leave top-upis based on actuarial assumptions about future events determined as at 31 August 2016 (the date atwhich the probabilities of usage were determined) and is based on the average daily salary andbanked sick days of employees as at 31 August 2016.






(c) The accrued benefit obligations for employee future benefit plans as at 31 August 2016 are based onthe most recent actuarial valuations completed for accounting purposes as at 31 August 2016 (dateactuarial probabilities were determined) and based on updated average daily salary and banked sickdays as at 31 August 2016. These valuations take into account the plan changes outlined above andthe economic assumptions used in these valuations are the Board’s best estimates of expected ratesof:

2016 2015

% %

Inflation 1.5 1.5Wages and salary escalation - -Discount on accrued benefit obligations 2.05 2.45

Information with respect to the Board's retirement and other employee future benefit obligations is asfollows:

Retirement and otheremployee future benefitliabilities: 2016 2015

Sick leavebenefits

Retirementbenefits

Otheremployee

future benefits

Totalemployee

future benefits

Totalemployee

future benefitsAccrued employeefuture benefitobligations at 31 August $ 20,961 $ 3,506,640 $ 265,655 $ 3,793,256 $ 4,086,476Unamortized actuarialgains (losses) at 31 August (405,118) (405,118) (135,903)Accrued employeefuture benefitobligations at 31 August $ 20,961 $ 3,101,522 $ 265,655 $ 3,388,138 $ 3,950,573

Retirement and otheremployee future benefitexpenses: 2016 2015

Sick leavebenefits

Retirementbenefits

Otheremployee

future benefits

Totalemployee

future benefits

Totalemployee

future benefitsCurrent year benefit

cost $ 20,961 $ 84,479 $ 105,440 $ 15,241Interest on accruedbenefit obligation $ 90,846 5,869 96,715 114,275Amortization ofactuarial gain (loss) 1,554 21,899 23,453 8,378

Employee futurebenefit expenses $ 22,515 $ 112,745 $ 90,348 $ 225,608 $ 137,894






Benefit Plan Future Changes:

Currently, the Board provides health, dental and life insurance benefits for certain employees and retiredindividuals from school boards and has assumed liability for payment of benefits under these plans. Aspart of ratified-labour collective agreements for unionized employees that bargain centrally and ratifiedcentral discussions with the principals and vice-principals associations. Employee Life and Health Trusts(ELHTs) will be established in 2016 - 2017 for the following employee groups: OECTA, CUPE, OCEWand non- unionized employees (including principals and vice-principals). The ELHTs will provide health,life and dental benefits to teachers (excluding daily occasional teachers), education workers (excludingcasual and temporary staff), other school board staff and retired individuals up to a school board'sparticipation date into the ELHT. These benefits will be provided through a joint governance structurebetween the bargaining/employee groups, school board trustees associations and the Government ofOntario. Starting 1 November 2016, the Board will no longer be responsible to provide benefits toOECTA and the remaining groups will be transferred by September 2017. The Board will transfer to theELHTs an amount per full-time equivalency based on the 2014 - 2015 actual benefit costs + 8.16%representing inflationary increases for 2015 - 2016 and 2016 - 2017. In addition, the Ministry ofEducation will provide an additional $ 300 per FTE for active employees to the school board. Theseamounts will then be transferred to the Trust for the provision of employee and retiree benefits.

7. NET LONG TERM DEBT

Net long term debt reported on the consolidated statement of financial position comprises of the following:

2016 2015

Debenture #1 - 5.118%, matures on 6 April 2028 $ 2,757,932 $ 2,920,920Debenture #2 - 4.560%, matures on 15 November 2031 1,241,655 1,295,774Debenture #3 - 4.950%, matures on 3 March 2033 589,325 611,518Debenture #4 - 5.112%, matures on 13 March 2034 808,422 835,844Debenture #5 - 5.232%, matures on 13 April 2035 2,085,208 2,148,617Debenture #6 - 4.863%, matures on 11 March 2036 605,253 623,154Debenture #7 - 3.799%, matures on 19 March 2038 6,698,502 6,892,570

$ 14,786,297 $ 15,328,397

Principal and interest payments relating to net debenture debt of $ 14,786,297 outstanding as at 31 August2016 are due as follows:

Principal Interest Total

2016 - 2017 $ 567,230 $ 653,967 $ 1,221,197 2017 - 2018 593,546 627,651 1,221,197 2018 - 2019 621,105 600,092 1,221,197 2019 - 2020 649,967 571,230 1,221,197 2020 - 2021 680,194 541,003 1,221,197 Thereafter 11,674,255 3,971,222 15,645,477

$ 14,786,297 $ 6,965,165 $ 21,751,462






8. TEMPORARY BORROWING

The Board has a $ 9,000,000 unsecured operating line of credit available bearing interest at the primerate minus 0.5%, of which Nil (2015 - Nil) was drawn at year end.

9. DEBT CHARGES AND CAPITAL LOANS INTEREST 2016 2015

Principal payments on long term debt $ 542,100 $ 518,102Interest payments on long term debt 679,098 703,096

$ 1,221,198 $ 1,221,198

10. EXPENSES BY OBJECT

The following is a summary of the expenses reported on the "Consolidated Statement of Operations" by object:

2015 - 2016Budget

2015 - 2016Actual

2014 - 2015Actual

(unaudited)(Note 1 (l))

Expenses by object: Salary and wages $ 39,977,388 $ 40,775,193 $ 40,471,966 Employee benefits 5,556,296 5,569,179 5,525,643 Staff development 937,349 883,837 906,544 Supplies and services 5,665,776 6,525,328 6,536,885 Interest 679,098 679,098 703,097 Rental expenses 56,377 71,498 93,164 Fees and contract services 5,923,765 5,949,849 5,493,985 Other 850,632 850,415 849,192 School funded activities 1,362,000 1,763,763 1,973,681 Amortization of tangible capital assets 2,355,488 2,556,737 2,337,417 Loss on disposal of tangible capital asset 275,600

$ 63,364,169 $ 65,900,497 $ 64,891,574






11. TANGIBLE CAPITAL ASSETS

CostBalance at

31 August 2015 Additions

Disposals,write-offs,

(transfers) andadjustments

Balance at31 August 2016

Land $ 785,900 $ 785,900Land improvements 1,765,751 $ 478,685 2,244,436Buildings 65,996,845 $ 1,298,289 67,295,134Construction in progress 1,863,573 3,212,570 (2,130,200) 2,945,943Portable structures 926,825 132,441 1,059,266Furniture 249,221 249,221First time equipping 170,398 170,398Equipment 199,548 57,667 257,215Computer hardware 354,539 354,539Computer software 108,383 108,383

Total $ 72,420,983 $ 3,881,363 $ (831,911) $ 75,470,435

Accumulated amortization

Balance at 31 August 2015 Amortization

Disposals,write-offs andadjustments

Balance at31 August 2016

Land improvements $ 466,405 $ 136,547 $ 602,952Buildings 21,040,182 2,313,669 $ (421,742) 22,932,109Portable structures 722,980 19,975 742,955Furniture 130,605 19,122 149,727First time equipping 123,304 12,984 136,288Equipment 112,299 18,223 130,522Computer hardware 332,626 15,612 348,238Computer software 15,659 20,605 36,264

Total $ 22,944,060 $ 2,556,737 $ (421,742) $ 25,079,055

Net book valueBalance at

31 August 2015Balance at

31 August 2016

Land $ 785,900 $ 785,900Land improvements 1,299,346 1,641,484Buildings 44,956,663 44,363,025Construction in progress 1,863,573 2,945,943Portable structures 203,845 316,311Furniture 118,616 99,494First time equipping 47,094 34,110Equipment 87,249 126,693Computer hardware 21,913 6,301Computer software 92,724 72,119

Total $ 49,476,923 $ 50,391,380

Assets under construction:Assets under construction having a value of $ 2,945,943 (2015 - $ 1,863,573) have not been amortized. Amortization of these assets will commence when the asset is put into service.






12. ACCUMULATED SURPLUS

Accumulated surplus consists of the following: 2016 2015

Available for compliance - unappropriated:Total operating accumulated surplus $ 135,970 $ 135,970Available for compliance - internally appropriated:Retirement Gratuities 1,930,139 1,906,121Vacation Pay/Transportation/Information Technology 1,993,802 1,968,061Maintenance 1,025,341 1,124,722Buildings and grounds 1,220,022 1,204,582Health and Safety 100,000 100,000Committed capital projects:

St. Francis of Assisi 3,315,731 3,317,993Bishop Smith Catholic High School 1,648,398 1,697,093Early learning kindergarten 334,143 365,245St. Michael's 1,131,074 1,154,933Our Lady of Sorrows 561,228 568,636

Total accumulated surplus available for compliance $ 13,395,848 $ 13,543,356

Unavailable for compliance - externally appropriated:Employee future benefits $ (2,822,522) $ (3,222,901)School generated funds 390,924 434,237Revenues recognized for land 785,900 785,900

Total externally appropriated $ (1,645,698) $ (2,002,764)

Total accumulated surplus $ 11,750,150 $ 11,540,592

13. TRUST FUNDS

Trust funds administered by the Board amounting to $ 750,429 (2015 - $ 746,799) have not beenincluded in the consolidated statement of financial position nor have their operations been included in theconsolidated statement of operations.

14. ONTARIO SCHOOL BOARD INSURANCE EXCHANGE (OSBIE)

The School Board is a member of the Ontario School Board Insurance Exchange (OSBIE), a reciprocal insurance company licensed under the Insurance Act. OSBIE insures general public liability, property damage and certain other risks.

The ultimate premiums over a five year period are based on the reciprocal's and the Board's actual claimsexperience. Periodically, the Board may receive a refund or be asked to pay an additional premiumbased on its pro rata share of claims experience. The occurrence of future losses and their impact onfuture premiums is not determinable.






15. CONTINGENCIES AND CONTRACTUAL OBLIGATIONS

In the normal course of operations the Board becomes involved in various claims and legal proceedings.While the final outcome with respect to claims and legal proceedings pending at 31 August 2016 cannotbe predicted with certainty, it is in the opinion of the Board that their resolution will not have a materialadverse effect on the Board's financial position or results of operations.

The Board has commitments with respect to capital projects of $ 2,213,759 (2015 - $ 2,404,617). As of31 August 2016, expenses of $ 1,587,885 (2015 - $ 1,545,952) have been incurred.

16. TRANSPORTATION CONSORTIUM

On 23 November 2010, the Renfrew County Joint Transportation Consortium (RCJTC) wasincorporated. On 30 September 2010, the Board entered into an agreement with the Renfrew CountyDistrict School Board in order to provide common administration of student transportation in theRegion. This agreement was executed in an effort to increase delivery efficiency and cost effectivenessof student transportation for each of the Boards. Under the agreement, decisions related to the financialand operating activities of the Renfrew County Joint Transportation Consortium are shared. No partneris in a position to exercise unilateral control.

This entity is proportionately consolidated in the Board's consolidated financial statements whereby theBoard's pro rata share of assets, liabilities, revenues and expenses of the consortium are included in theBoard's consolidated financial statements. Interorganizational transactions and balances have beeneliminated.

The following provides condensed financial information:

2016 2015

TotalBoard

Portion TotalBoard

PortionFinancial position:

Financial assets $ 617,914 $ 213,922 $ 468,069 $ 159,369Liabilities (894,776) (233,198) (806,189) (174,366)Non-financial assets 276,862 19,276 338,120 14,997

Accumulated surplus (deficit) $ - $ - $ - $ -

Operations:Revenues $ 11,201,026 $ 3,877,795 $ 11,283,691 $ 3,844,354Expenses (11,201,026) (3,877,795) (11,283,691) (3,844,354)

Annual surplus (deficit) $ - $ - $ - $ -






17. REPAYMENT OF "55 SCHOOL BOARD TRUST" FUNDING

On 1 June 2003, the Board received $ 8,891,329 from the 55 School Board Trust for its capital relateddebt eligible for provincial funding support pursuant to a 30-year agreement it entered into with theTrust. The 55 School Board Trust was created to refinance the outstanding not permanently financed(NPF) debt of participating boards who are beneficiaries of the Trust. Under the terms of theagreement, the 55 School Board Trust repaid the Board's debt in consideration for the assignment by theBoard to the Trust of future provincial grants payable to the Board in respect of the NPF debt.

As a result of the above agreement, the liability in respect of the NPF debt is no longer reflected in theBoard's financial position.

18. COMPARATIVE FIGURES

Certain comparative figures have been reclassified to conform to the current year's financial statementpresentation.

19. CHANGES IN ACCOUNTING POLICIES

The Board has implemented Public Sector Accounting Board ("PSAB") Section 3260 Liability for Contaminated Sites. Section 3260 requires governments to record a liability in their financialstatements if they have a contaminated site that meets the requirements set out in the standard. Thestandard defines contamination as the introduction into air, soil, water or sediment of a chemical,organic or radioactive material or live organism that exceeds an environmental standard. The standardgenerally applies to sites that are not in productive use. Sites that are in productive use are onlyconsidered contaminated if there was an unexpected event that resulted in contamination. This changehas been applied retroactively without the restatement of prior periods. The adoption of this standarddid not have an impact on the Board's financial statements.



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