AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2016

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3240TTY1

School Jurisdiction Code: 3240

AUDITED

FINANCIAL 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 Branch

8th Floor Commerce Place, 10155-102 Street, Edmonton AB T5J 4L5

EMAIL: mei-ling.irwin@gov.ab.ca AND robert.mah@gov.ab.ca

PHONE: Mei-Ling: (780) 415-8940; Robert: (780) 427-3855 FAX: (780) 422-6996

Board-approved Release Date

Signature Signature Signature Name Name Name SUPERINTENDENT

Mr. Alexander (Sandy) McDonald

SECRETARY-TREASURER OR TREASURER

Mr. Jeff Olson

November 29, 2016

"Original Signed"

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

Grande Prairie School District No. 2357

10213 - 99 Street Grande Prairie AB T8V 2H3

(780) 532-4491 (780) 539-4265 jeff.olson@gppsd.ab.ca

presented to Alberta Education have been prepared by school jurisdiction management which has responsibility their preparation, integrity and objectivity. The financial statements, including notes, have been prepared in accorda with 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 desig to provide reasonable assurance that the school jurisdiction's assets are safeguarded, that transactions are execu in accordance with appropriate authorization and that accounting records may be relied upon to properly reflect

Grande Prairie School District No. 2357

Mr. John Lehners

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

The ultimate responsibility for the financial statements lies with the Board of Trustees. The Board reviewed the aud financial 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 findin The 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 posit results of operations and cash flows for the year in accordance with Canadian Public Sector Accounting Standar

BOARD CHAIR

"Original Signed"

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School Jurisdiction Code: 3240 TABLE OF CONTENTS Page 3 4 5 6 7 8 9 11 12 13 14 15 16 17 32 33 34 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)

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Independent Auditors' Report

To the Board of Trustees of Grande Prairie Public School District No. 2357:

We have audited the accompanying financial statements of Grande Prairie Public School District No. 2357, which comprise

the statement of financial position as at August 31, 2016, and the statements of operations, cash flows, change in net debt, and remeasurement gains or losses for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the 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 Grande Prairie Public School District No. 2357 as at August 31, 2016, and the results of its operations, its cash flows, its changes in net debt, and its remeasurement gain or losses for the year ended August 31, 2016 in accordance with Canadian public sector

accounting standards.

Other Matter

Without modifying our opinion, we draw attention to the fact that supplementary information in the schedules of fee revenue, differential funding and central administration expenses are unaudited.

Grande Prairie, Alberta

MN'?LLP

November 29, 2016 Chartered Professional Accountants

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School Jurisdiction Code: 3240

2016 2015

FINANCIAL ASSETS

Cash and cash equivalents (Schedule 5; Note 2) $ 2,829,590 $ 10,003,606

Accounts receivable (net after allowances) (Note 3) $ 6,496,469 $ 6,068,842

Portfolio investments $ - $

-Other financial assets $ - $

-Total financial assets $ 9,326,059 $ 16,072,448

LIABILITIES

Bank indebtedness (Note 5) $ - $

-Accounts payable and accrued liabilities (Note 6) $ 2,645,861 $ 1,635,530

Deferred revenue (Note 7) $ 168,345,496 $ 121,070,436

Employee future benefit liabilities $ - $

-Liability for contaminated sites $ - $

-Other liabilities $ - $

-Debt (Note 9)

Supported: Debentures and other supported debt $ 778,413 $ 1,120,709

Unsupported: Debentures and capital loans $ - $

-Mortgages $ - $ -Capital leases $ - $ -Total liabilities $ 171,769,770 $ 123,826,675 (162,443,711) $ $ (107,754,227) NON-FINANCIAL ASSETS

Tangible capital assets (Schedule 6)

Land $ 1,081,253 $ 431,253

Construction in progress $ 3,168,841 $ 8,477,941

Buildings $ 228,155,659

Less: Accumulated amortization $ (67,634,922) $ 160,520,737 $ 103,533,583

Equipment $ 11,347,702

Less: Accumulated amortization $ (4,714,453) $ 6,633,249 $ 4,959,614

Vehicles $ 480,295

Less: Accumulated amortization $ (334,390) $ 145,905 $ 115,196

Computer Equipment $

-Less: Accumulated amortization $ - $ - $

-Total tangible capital assets $ 171,549,985 $ 117,517,587

Prepaid expenses (Note 10) $ 1,286,094 $ 855,061

Other non-financial assets (Note 4) $ 111,542 $ 127,147

Total non-financial assets $ 172,947,621 $ 118,499,795

Accumulated surplus (Schedule 1; Note 11) $ 10,503,910 $ 10,745,568

Accumulating surplus / (deficit) is comprised of:

Accumulated operating surplus (deficit) $ 10,503,910 $ 10,745,568

Accumulated remeasurement gains (losses) $ - $

-10,503,910

$ $ 10,745,568

Contractual obligations (Note 13)

Contingent liabilities (Note 16)

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)

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Budget Actual Actual

2016 2016 2015

Alberta Education $ 90,174,095 $ 89,730,553 $ 88,036,369

Other - Government of Alberta $ 1,527,063 $ 1,168,770 $ 1,676,777

Federal Government and First Nations $ 35,000 $ 18,412 $ 32,661

Other Alberta school authorities $ 84,000 $ - $

-Out of province authorities $ - $ - $

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

-Property taxes $ - $ - $

-Fees $ 2,451,474 $ 2,611,213 $ 2,431,490

Other sales and services $ 1,715,564 $ 1,619,306 $ 2,425,925

Investment income $ 121,260 $ 70,539 $ 118,499

Gifts and donations $ 240,552 $ 110,502 $ 161,688

Rental of facilities $ 60,000 $ 93,123 $ 50,762

Fundraising $ 500,000 $ 480,844 $ 518,414

Gains on disposal of capital assets $ - $ 3,257 $ 21,808

Other revenue $ - $ - $

-Total revenues $ 96,909,008 $ 95,906,519 $ 95,474,393

Instruction - ECS $ 7,382,238 $ 6,493,395 $ 7,037,862

Instruction - Grades 1 - 12 $ 71,855,652 $ 68,657,090 $ 68,843,303

Plant operations and maintenance $ 12,829,327 $ 15,641,969 $ 14,621,839

Transportation $ 2,040,481 $ 2,289,121 $ 2,161,098

Board & system administration $ 2,855,708 $ 3,066,602 $ 2,830,513

External services $ 652,602 $ - $ 488,596

Total expenses $ 97,616,008 $ 96,148,177 $ 95,983,211

(707,000)

$ $ (241,658) $ (508,818)

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

EXPENSES

Operating surplus (deficit)

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

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3240

2016 2015

CASH FLOWS FROM: A. OPERATING TRANSACTIONS

Operating surplus (deficit) $ (241,658) $ (508,818) Add (Deduct) items not affecting cash:

Total amortization expense $ 4,861,097 $ 3,467,081 Gains on disposal of tangible capital assets $ (3,257) $ (21,808) Losses on disposal of tangible capital assets $ - $ -Expended deferred capital revenue recognition $ (4,766,279) $ (3,384,087) Deferred capital revenue write-down / adjustment $ - $ -Donations in kind $ - $ -Changes in:

Accounts receivable $ (427,627) $ (2,077,075) Prepaids $ (431,033) $ (29,555) Other financial assets $ - $ -Non-financial assets $ 15,605 $ (3,767) Accounts payable, accrued and other liabilities $ 1,010,331 $ (818,815) Deferred revenue (excluding EDCR) $ 2,705,303 $ 4,597,661 Employee future benefit liabilities $ - $

-$ $

-Total cash flows from operating transactions $ 2,722,482 $ 1,220,817

B. CAPITAL TRANSACTIONS

Purchases of tangible capital assets

Land $ (650,000) $ -Buildings $ (6,397,972) $ (925,091) Equipment $ (2,430,469) $ (1,203,989) Vehicles $ (81,618) $ -Computer equipment $ - $ -Net proceeds from disposal of unsupported capital assets $ 5,857 $ 21,808

-$ $

-Total cash flows from capital transactions $ (9,554,202) $ (2,107,272)

C. INVESTING TRANSACTIONS

Purchases of portfolio investments _$_- _$ -Dispositions of portfolio investments _$_- _$ -Remeasurement (gains) losses reclassified to the statement of operations $ - $ -Change in endowments $ - $

-$ $

-Total cash flows from investing transactions $ - $

-D. FINANCING TRANSACTIONS

Issue of debt $ - $ -Repayment of debt $ (342,296) $ (381,844)

-$ $ -Issuance of capital leases $ - $ -Repayment of capital leases $ - $

-$ $

-Total cash flows from financing transactions $ (342,296) $ (381,844)

Increase (decrease) in cash and cash equivalents $ (7,174,016) $ (1,268,299)

Cash and cash equivalents, at beginning of year $ 10,003,606 $ 11,271,905

Cash and cash equivalents, at end of year $ 2,829,590 $ 10,003,606

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

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)

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3240

Budget 2016 2015

2016

Operating surplus (deficit) $ (707,000) $ (241,658) $ (508,818)

Effect of changes in tangible capital assets

Acquisition of tangible capital assets $ (50,000,000) $ (58,896,095) $ (15,748,429)

Amortization of tangible capital assets $ 3,484,217 $ 4,861,097 $ 3,467,081

Net carrying value of tangible capital assets disposed of $ - $ 2,600 $

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

-Other changes $ - $ - $

-Total effect of changes in tangible capital assets $ (46,515,783) $ (54,032,398) $ (12,281,348)

Changes in:

Prepaid expenses $ - $ (431,033) $ (29,555)

Other non-financial assets $ - $ 15,605 $ (3,767)

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

-Endowments $ - $ - $

-Increase (decrease) in net financial assets (net debt) $ (47,222,783) $ (54,689,484) $ (12,823,488)

Net financial assets (net debt) at beginning of year $ (107,750,000) $ (107,754,227) $ (94,930,739)

Net financial assets (net debt) at end of year $ (154,972,783) $ (162,443,711) $ (107,754,227)

STATEMENT OF CHANGE IN NET FINANCIAL ASSETS (NET DEBT) For the Year Ended August 31, 2016 (in dollars)

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2016 2015

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

-$ $

-Unrealized gains (losses) attributable to:

-$ $

-Amounts reclassified to the statement of operations:

-$ $

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

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

-STATEMENT OF REMEASUREMENT GAINS AND LOSSES

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

Other

Prior Period Adjustment (Explain) Prior Period Adjustment (Explain)

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School Jurisdict ion C ode: 3240 S CHE DULE 1 A CCUM UL A T ED A CCUM UL A T ED A CCUM UL A T ED IN VEST M E NT ENDO W M ENT S UNREST RI CT ED TOTA L T OTA L S URP L U S R E M E A S URE M E NT O P E R A T IN G IN T A NG IB L E S URP L U S O P E R A T IN G CA P IT A L G A IN S (L O SSES) SU R P L U S C A P IT A L R ESER VES R ESER VES A SSET S B a la nc e a t A ugus t 3 1 , 2015 10, 745, 568 $ -$ 10, 745, 568 $ 1, 284, 411 $ -$ 752, 631 $ 5, 364, 733 $ 3, 343, 793 $ P rior pe ri od a d ju s tm e nt s : -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ A d ju s te d B a la nc e , A ugus t 3 1 , 2015 10, 745, 568 $ -$ 10, 745, 568 $ 1, 284, 411 $ -$ 752, 631 $ 5, 364, 733 $ 3, 343, 793 $ O per at ing s u rp lus ( def ic it ) (241, 658) $ (241, 658) $ (241, 658) $ B oar d f unded t angible c apit a l as s e t addit ions 3, 966, 614 $ (3 ,966, 614) $ -$ -$ Dis pos al of uns uppor ted t angible c apit a l as s e ts or boar d f unded p or ti on of s u pp or te d -$ -$ (2 ,600) $ 2 ,6 0 0 $ -$ W rit e-down of uns uppor ted t angible c apit a l as s e ts or boar d f unded p or ti on of s u pp or te d -$ -$ -$ -$ -$ Net r e m eas ur em ent gains ( los s e s ) f o r t he y ear -$ -$ E ndowm ent ex pens es & dis bur s e m ent s -$ -$ -$ -$ E ndowm ent c ont ri but ions -$ -$ -$ -$ Reinv e s ted endowm ent inc o m e -$ -$ -$ -$ D ire ct cre d it s t o a ccu m u la te d su rp lu s (D e scri b e ) -$ -$ -$ -$ -$ -$ -$ A m or ti z a ti on of t angible c apit a l as s e ts -$ (4 ,861, 097) $ 4, 861, 097 $ Capit a l r e v enue r e c ogniz e d -$ 4, 766, 279 $ (4 ,766, 279) $ Debt pr inc ipal r epay m ent s ( uns uppor ted) -$ -$ -$ A ddit ional c apit a l debt or c apit a l leas es -$ -$ -$ Net t rans fe rs t o oper at ing r e s e rv es -$ (504, 039) $ 504, 039 $ Net t rans fe rs f rom oper at ing r e s e rv es -$ 975, 000 $ (975, 000) $ N e t tr a n s fe rs to c a p ita l r e s e rv e s -$ -$ -$ N e t tr a n s fe rs fr o m c a p ita l r e s e rv e s -$ 3, 120, 830 $ (3 ,120, 830) $ A s s u m p ti on/ tr ans fe r of ot her oper at ions ' su rp lus -$ -$ -$ -$ -$ -$ -$ O ther Changes -$ -$ -$ -$ -$ -$ -$ B a la nc e a t A ugus t 3 1 , 2016 10, 503, 910 $ -$ 10, 503, 910 $ 5, 153, 607 $ -$ 233, 568 $ 4, 893, 772 $ 222, 963 $ S CHE DUL E OF CHA NGE S I N A CCUM UL A T E D S URP L U S for the Y ear E nded A ugust 31, 2016 (i n dol la rs ) IN T E RNA L L Y RE S T RI CT E D 9

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S CHE DULE 1 B a la nc e a t A ugus t 3 1 , 2015 P rior pe ri od a d ju s tm e nt s : A d ju s te d B a la nc e , A ugus t 3 1 , 2015 O per at ing s u rp lus ( def ic it ) B oar d f unded t angible c apit a l as s e t addit ions Dis pos al of uns uppor ted t angible c apit a l as s e ts or boar d f unded p or ti on of s u pp or te d W rit e-down of uns uppor ted t angible c apit a l as s e ts or boar d f unded p or ti on of s u pp or te d Net r e m eas ur em ent gains ( los s e s ) f o r t he y ear E ndowm ent ex pens es & dis bur s e m ent s E ndowm ent c ont ri but ions Reinv e s ted endowm ent inc o m e D ire ct cre d it s t o a ccu m u la te d su rp lu s (D e scri b e ) A m or ti z a ti on of t angible c apit a l as s e ts Capit a l r e v enue r e c ogniz e d Debt pr inc ipal r epay m ent s ( uns uppor ted) A ddit ional c apit a l debt or c apit a l leas es Net t rans fe rs t o oper at ing r e s e rv es Net t rans fe rs f rom oper at ing r e s e rv es N e t tr a n s fe rs to c a p ita l r e s e rv e s N e t tr a n s fe rs fr o m c a p ita l r e s e rv e s A s s u m p ti on/ tr ans fe r of ot her oper at ions ' su rp lus O ther Changes B a la nc e a t A ugus t 3 1 , 2016 School Jurisdict ion C ode: 3240 4, 989, 733 $ -$ -$ 2 2 ,7 5 1 $ 375, 000 $ 3, 120, 830 $ -$ 200, 212 $ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 4, 989, 733 $ -$ -$ 2 2 ,7 5 1 $ 375, 000 $ 3, 120, 830 $ -$ 200, 212 $ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 504, 039 $ -$ -$ -$ -$ (600, 000) $ -$ (375, 000) $ -$ -$ -$ -$ -$ -$ -$ -$ -$ (3 ,120, 830) $ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 4, 893, 772 $ -$ -$ 2 2 ,7 5 1 $ -$ -$ -$ 200, 212 $ -$ -$ for the Y ear E nded A ugust 31, 2016 (i n dol la rs ) O per at ing R e s e rv e s C a p ita l R e s e rv e s O per at ing R e s e rv e s C a p ita l R e s e rv e s O per at ing R e s e rv e s C a p ita l R e s e rv e s S c hool & Ins tr u c tion R e la te d O pe ra ti ons & M a int e na nc e B oa rd & S y s te m A d m inis tr a ti on Tr a n s por ta ti on S CHE DUL E OF CHA NGE S I N A CCUM UL A T E D S URP L U S E x te rn al S e rvi ces IN T E R N A L L Y R EST R IC T ED R ESER VES B Y PR O G R A M O per at ing R e s e rv e s C a p ita l R e s e rv e s O per at ing R e s e rv e s C a p ita l R e s e rv e s 10

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3240 SCHEDULE 2

SCHEDULE OF CAPITAL REVENUE (EXTERNALLY RESTRICTED CAPITAL REVENUE ONLY)

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

Proceeds on Unexpended Disposal 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 $ 3,360,539 $ 241,050 $ - $ - $ 116,233,176 Prior period adjustments $ - $ - $ - $ - $ -Adjusted balance, August 31, 2015 $ 3,360,539 $ 241,050 $ - $ - $ 116,233,176 Add:

Unexpended capital revenue received from:

Alberta Education school building & modular projects (excl. IMR) $ 1,037,121 Infrastructure Maintenance & Renewal capital related to school facilities $

-Other sources: $ - $ 76,786

Other sources: $ - $

-Unexpended capital revenue receivable from:

Alberta Education school building & modular (excl. IMR) $ 1,895,423

Other sources: $ - $

-Other sources: $ - $

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

-Other unexpended capital revenue: $

-Proceeds on dispoition of supported capital $ - $ -Insurance proceeds (and related interest) $ - $

-Donated tangible capital assets: $

-Alberta Infrastructure managed projects $ 49,336,036

Transferred in (out) tangible capital assets (amortizable, @ net book value) $ -Expended capital revenue - current year $ (5,516,660) $ - $ - $ (76,786) $ 5,593,446 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 $ 3,697,143

Capital revenue recognized - Other Government of Alberta $ 887,955

Capital revenue recognized - Other revenue $ 181,181

Balance at August 31, 2016 $ 776,423 $ 241,050 $ - $ - $ 166,396,379

(A) (B) (C) (D)

Balance of Unexpended Deferred Capital Revenue at August 31, 2016 (A) + (B) + (C) + (D) $ 1,017,473

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

Equipment donations

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SCHEDULE 3

3240 2015 Plant Operations Board & REVENUES and System External ECS Grades 1 - 12 Maintenance Transportation A dministration Services TOTA L TOTA L (1) Alberta Education 6,137,845 $ 64,651,185 $ 14,062,443 $ 2,006,500 $ 2,872,580 $ -$ 89,730,553 $ 88,036,369 $ (2)

Other - Government of Alberta

-$ 280,815 $ 887,955 $ -$ -$ -$ 1,168,770 $ 1,676,777 $ (3)

Federal Government and First Nations

-$ 18,412 $ -$ -$ -$ -$ 18,412 $ 32,661 $ (4)

Other Alberta school authorities

-$ -$ -$ -$ -$ -$ -$ -$ (5)

Out of province authorities

-$ -$ -$ -$ -$ -$ -$ -$ (6)

Alberta municipalities-special tax levies

-$ -$ -$ -$ -$ -$ -$ -$ (7) Property taxes -$ -$ -$ -$ -$ -$ -$ -$ (8) Fees 310,262 $ 2,224,538 $ 76,413 $ -$ 2,611,213 $ 2,431,490 $ (9)

Other sales and services

-$ 976,852 $ 516,862 $ 2,289 $ 123,303 $ -$ 1,619,306 $ 2,425,925 $ (10) Investment income -$ 70,539 $ -$ -$ -$ -$ 70,539 $ 118,499 $ (11)

Gifts and donations

-$ 110,502 $ -$ -$ -$ -$ 110,502 $ 161,688 $ (12) Rental of facilities -$ -$ 93,123 $ -$ -$ -$ 93,123 $ 50,762 $ (13) Fundraising -$ 480,844 $ -$ -$ -$ -$ 480,844 $ 518,414 $ (14)

Gains on disposal of tangible capital assets

-$ -$ 3,257 $ -$ -$ -$ 3,257 $ 21,808 $ (15) Other revenue -$ -$ -$ -$ -$ -$ -$ -$ (16) TOTAL REVENUES 6,448,107 $ 68,813,687 $ 15,563,640 $ 2,085,202 $ 2,995,883 $ -$ 95,906,519 $ 95,474,393 $ EXPENSES (17) Certificated salaries 3,385,029 $ 41,992,701 $ 258,577 $ -$ 45,636,307 $ 45,639,734 $ (18) Certificated benefits 384,587 $ 9,995,862 $ 271,958 $ -$ 10,652,407 $ 10,814,381 $ (19)

Non-certificated salaries and wages

1,972,478 $ 7,415,947 $ 3,911,937 $ 158,198 $ 1,445,564 $ -$ 14,904,124 $ 15,443,206 $ (20) Non-certificated benefits 557,425 $ 1,995,535 $ 965,427 $ 36,579 $ 342,009 $ -$ 3,896,975 $ 3,976,009 $ (21) SUB - TOTAL 6,299,519 $ 61,400,045 $ 4,877,364 $ 194,777 $ 2,318,108 $ -$ 75,089,813 $ 75,873,330 $ (22)

Services, contracts and supplies

193,876 $ 7,257,045 $ 5,821,406 $ 2,094,344 $ 745,931 $ -$ 16,112,602 $ 16,528,919 $ (23)

Amortization of supported tangible capital assets

-$ -$ 4,766,279 $ -$ -$ -$ 4,766,279 $ 3,384,087 $ (24)

Amortization of unsupported tangible capital assets

-$ -$ 94,818 $ -$ -$ -$ 94,818 $ 82,994 $ (25)

Supported interest on capital debt

-$ -$ 82,102 $ -$ -$ -$ 82,102 $ 113,881 $ (26)

Unsupported interest on capital debt

-$ -$ -$ -$ -$ -$ -$ -$ (27)

Other interest and finance charges

-$ -$ -$ -$ 2,563 $ -$ 2,563 $ -$ (28)

Losses on disposal of tangible capital assets

-$ -$ -$ -$ -$ -$ -$ -$ (29) Other expense -$ -$ -$ -$ -$ -$ -$ -$ (30) TOTAL EXPENSES 6,493,395 $ 68,657,090 $ 15,641,969 $ 2,289,121 $ 3,066,602 $ -$ 96,148,177 $ 95,983,211 $ (31) (45,288) $ 156,597 $ (78,329) $ (203,919) $ (70,719) $ -$ (241,658) $ (508,818) $

OPERATING SURPLUS (DEFICIT)

SCHEDULE OF PROGRAM OPERATIONS

for the Year Ended August 31, 2016

(in dollars)

2016

Instruction

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S CHE DULE 4 S c hool J u ri s d ic ti on Code : 3240 E x pe ns e d IMR, Uns uppor te d 2016 2015 T O T A L Ut ilit ie s Modula r Unit A m or tiza ti on S uppor te d T O T A L O p e ra tions a n d EXPEN SES C u sto d ial M a in ten a n c e a n d Re loc a tions & & O the r C a p ital & D e b t Op er ati o n s an d M ai n ten an ce T e leco mm. L ease Paymen ts Exp e n ses S e rv ic e s Ma int e na nc e U n cer ti fi cated sal ar ies an d wag es 2, 500, 438 $ 1, 279, 196 $ -$ -$ 132, 303 $ 3, 911, 937 $ 3, 932, 987 $ U n cer ti fi cated b e n e fi ts 656, 489 $ 282, 349 $ -$ -$ 2 6 ,5 8 9 $ 965, 427 $ 988, 579 $ Su b -to tal R e mu n e ra ti o n 3, 156, 927 $ 1, 561, 545 $ -$ -$ 158, 892 $ 4, 877, 364 $ 4, 921, 566 $ Su p p li es an d ser vi ces 375, 178 $ 1, 125, 772 $ -$ 1, 276, 670 $ -$ 2, 777, 620 $ 3, 151, 462 $ El ectr ici ty 1, 014, 277 $ 1, 014, 277 $ 1, 036, 885 $ N a tu ra l g as/ h eati n g fu el 502, 068 $ 502, 068 $ 431, 299 $ Sewer an d water 162, 632 $ 162, 632 $ 156, 988 $ T e leco mmu n icati o n s 13, 811 $ 13, 811 $ 1 5 ,7 1 6 $ Ins u ra nc e 305, 622 $ 305, 622 $ 301, 445 $ A S A P mai n ten a n ce & r e n e wal p aymen ts -$ -$ -$ A m o rti z a ti o n o f tan g ib le cap it al assets Support e d 4, 766, 279 $ 4, 766, 279 $ 3, 384, 087 $ U n s upport e d 94, 818 $ 9 4 ,8 1 8 $ 6 3 ,6 2 4 $ T o ta l A m or tiza ti on 94, 818 $ 4, 766, 279 $ 4, 861, 097 $ 3, 447, 711 $ In ter est o n cap it al d e b t Support e d 82, 102 $ 8 2 ,1 0 2 $ 113, 881 $ U n s upport e d -$ -$ -$ Leas e pay m ent s f o r f a c ilit ies 1, 045, 376 $ 1, 045, 376 $ 1, 044, 886 $ Oth e r i n ter est ch ar g e s -$ -$ -$ L o sses o n d isp o sal o f cap it al assets -$ -$ -$ T O T A L EXPEN SES 3, 532, 105 $ 2, 687, 317 $ 1, 692, 788 $ 2, 322, 046 $ 464, 514 $ 9 4 ,8 1 8 $ 4, 848, 381 $ 15, 641, 969 $ 14, 621, 839 $ Sc hool buildings 95, 952. 9 95, 952. 9 N on s c hool buildings 2, 573. 0 2 ,573. 0 All ex pens es relat ed t o ac ti v it ies undert a k en t o k eep t he s c hool env ironm ent and m a int enanc e s hops c lean and s a fe . All ex pens es as s o c iat ed w it h t he repair, replac em ent , enhanc em ent and m inor c ons tr uc ti on of buildings , grounds and equipm ent c o m ponen ts. Th is i n cl udes

regular and prev

ent at iv e m a int enanc e undert a k en t o ens ure c o m ponent s reac h or ex c eed t heir lif e c y c le and t he repair of brok en c o m ponen ts. M a in tenanc e ex pens es ex c lude operat ional c o sts r e la te d to ex pens ed I M R & M odular U n it reloc a ti ons , as t hey are report ed on s eparat ely . All ex pens es relat ed t o elec tr ic it y , nat ural gas and ot her heat ing f uels , s e w e r and w a te r and all f o rm s of t e lec o m m unic a ti ons . All operat ional ex pens es as s o c iat ed w it h non-c apit a liz ed I n fr as tr uc tu re M a int enanc e R enew al proje cts, m odular unit (port able) reloc a ti on, and pay m ent s on leas ed f a c ilit ies . All ex pens es relat ed t o t he adm inis tr at ion of operat ions and m a int enanc e inc luding (but not lim it ed t o ) c ont rac t adm inis tr at ion , c leric al f unc ti ons , negot iat ions , s uperv is ion of em ploy ees & c ont rac to rs , s c hool f a c ilit y

planning & projec

t ' adm inis tr at ion' , adm inis tr at ion of joint -us e agreem en ts, and all ex pens es relat ed t o ens uring c o m p lianc e w it h healt h and s a fe ty s tandards , c odes and gov ernm ent regulat ions . All ex pens es relat ed t o uns upport ed c apit a l as s e ts am ort iz a ti on and int e res t on uns upport ed c apit a l debt . All ex pens es relat ed t o s upport ed c apit a l as s e ts am ort iz a ti on and int e res t on s upport ed c apit a l debt . S uppor te d Ca pit a l & De bt S e rv ices: Fa c ilit y P la nning & O p e ra tions A d m inis tr a ti on: E x pe ns e d

IMR & Modula

r Unit Re loc a tion & L ease Pmts: Ut ilit ie s & T e le c o m m unic a tions : Ma int e na nc e : Uns uppor te d A m or tiza ti on & O the r E x pe n ses: S Q UA RE ME T R E S SC H E D U L E OF PL A N T OPER A T IO N S A N D M A IN T E N A N C E EXPEN SES fo r t h e Y e a r E nde d A ugus t 3 1 , 2016 (i n d o ll a rs ) Fa c ilit y P la nning & Op er ati o n s A d m inis tr a ti on C u sto d ial : Not e : 13

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SCHEDULE 5 School Jurisdiction Code: 3240

Cash & Cash Equivalents 2015

Average Effective

(Market) Yield Cost Amortized Cost Amortized Cost

Cash $ 2,829,590 $ 2,829,590 $ 10,003,606

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 0.00% $ 2,829,590 $ 2,829,590 $ 10,003,606

See Note 1 for additional detail.

Portfolio Investments 2015

Average Effective

(Market) Yield Cost Fair Value Balance Balance

Long term deposits _{0.00% $ - $ - $ - $ -}

Guranteed interest certificates 0.00% - - - -

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 0.00% $ - $ - $ - $ -

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 0.0% 0.0% 6 to 10 years 0.0% 0.0% 11 to 20 years 0.0% 0.0% Over 20 years 0.0% 0.0% 0.0% 0.0% 2016 2016

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

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SCHEDULE 6

3240

Tangible Capital Assets

2015

Estimated useful life

25-50 Years

5-10 Years

3-5 Years

Historical cost Beginning of year

$ 431,253 $ 8,477,941 $ 167,112,552 $ 8,917,232 $ 405,177 $ - $ 1 85,344,155 $ 169,858,882

Prior period adjustments

- - - - - - - - Additions 650,000 52,561,468 3,172,539 2,430,470 81,618 - 58,896,095 15,748,430 Transfers in (out) - (57,870,568) 57,870,568 - - - - -

Less disposals including write-offs

- - - - (6, 500) - (6,500) (263,157) $ 1,081,253 $ 3,168,841 $ 228,155,659 $ 11,347,702 $ 480,295 $ - $ 244,233,750 $ 185,344,155

Accumulated amortization Beginning of year

$ - $ - $ 63,578,969 $ 3,957,618 $ 289,981 $ - $ 67,826,568 $ 64,622,644

Prior period adjustments

- - - - - - - - Amortization - - 4,055,953 756,835 48,309 - 4,861,097 3,467,081 Other additions - - - - - - - - Transfers in (out) - - - - - - - -

Less disposals including write-offs

- - - - (3,900) - ( 3,900) (263,157) $ - $ - $ 67,634,922 $ 4,714,453 $ 334,390 $ - $ 72,683,765 $ 67,826,568

Net Book Value at August 31, 2016

$ 1,081,253 $ 3,168,841 $ 160,520,737 $ 6,633,249 $ 145,905 $ - $ 171,549,985

Net Book Value at August 31, 2015

$ 431,253 $ 8,477,941 $ 103,533,583 $ 4,959,614 $ 115,196 $ - $ 117,517,587 2016 2015 $ - $ - $ - $ - Total Total

Total amortization of assets under capital lease

SCHEDULE OF CAPITAL ASSETS

2016 Land Construction In Progress Buildings Equipment Vehicles

Computer _{Hardware &} Software

Total cost of assets under capital lease

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SCHEDULE 7 Negotiated Performance Other Accrued Board Members: FTE Remuneration Benefits Allowances Bonuses Unpaid Benefits Expenses

Chair John Lehners

1.00 $27,709 $5,159 $0 $0 $12,897 Other members $0 $0 $0 $0 $0

Joann Cazakoff, Trustee

1.00 $22,776 $705 $0 $0 $8,305

Brenda Howard, Trustee

1.00 $24,865 $5,044 $0 $0 $11,896

Paulette Kurylo, Trustee

1.00 $20,694 $4,858 $0 $0 $3,574

Karen Prokopowich, Trustee

1.00 $24,155 $4,346 $0 $0 $9,875 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal 5.00 $120,199 $20,112 $0 $0 $46,547

Carol Ann Macdonald, Superintendent

0.40 $87,172 $15,646 $2,000 $0 $249,022 $0 $7,901

Alexander McDonald, Superintendent

0.60 $140,872 $32,658 $1,500 $0 $0 $0 $8,235

Jeffrey Olson, Secretary/Treasurer

1.00 $177,873 $43,220 $0 $0 $0 $0 $4,359 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Certificated teachers 457.45 $45,408,263 $10,351,581 $0 $0 $0 $0 Non-certificated - other 313.13 $14,606,052 $3,833,643 $0 $0 $0 $0 TOTALS 777.57 $60,540,431 $14,296,860 $3,500 $0 $249,022 $0 $67,042 ERIP's / Other Paid

SCHEDULE OF REMUNERATION AND MONETARY INCENTIVES

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GRANDE PRAIRIE PUBLIC SCHOOL DISTRICT NO. 2357 NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED AUGUST 31, 2016

17

1. AUTHORITY AND PURPOSE

The School District delivers education programs under the authority of the School Act, Revised Statutes of Alberta, 2000, Chapter S-3.

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

2. SIGNIFICANT ACCOUNTING POLICIES

These audited financial statements have been prepared in accordance with CPA Canadian public sector accounting standards (PSAS). 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:

Cash and Cash Equivalents

Cash and cash equivalents include cash and restricted cash funds held for the Pregnant and Parenting Teen Program - $0 (2015 - $298,547) and $0 (2015 – 3,343,793) for capital reserves.

Accounts Receivable

Accounts receivable are shown net of allowance for doubtful accounts.

Revenue Recognition

Revenues are 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.

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. Contributed services are not recognized in the financial statements.

Eligibility criteria are criteria that the School District has to meet in order to receive certain contributions. Stipulations describe what the School District 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

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18

2. SIGNIFICANT ACCOUNTING POLICIES – continued

Revenue Recognition - continued

definition of a liability in accordance with Section PS 3200. Such liabilities are recorded as deferred revenue. The following items fall under this category:

 Non-capital contributions for specific purposes are recorded as deferred revenue and recognized as revenue in the year the stipulated related expenses are incurred;  Unexpended Deferred Capital Revenue; or

 Expended Deferred Capital Revenue. Expenses

Expenses are reported on an accrual basis. The cost of all goods consumed and services received 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. Tangible Capital Assets

Tangible capital assets are recorded at cost. Rates of amortization applied on a straight-line basis to write off the cost of capital assets over their estimated useful lives are as follows:

Buildings 2.5% to 10%

Equipment 10% to 20%

Vehicles 10% to 20%

Amortization is recorded once assets acquired are in productive use. Amortization is not recorded on construction in progress until such time as the project is in productive use.

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.

Construction-in-progress is recorded as an acquisition to the applicable asset class at substantial completion.

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19

Tangible Capital Assets - continued

When tangible capital assets are sold or scrapped, the cost of the asset and the related accumulated amortization are removed from the accounts and any resulting gain or loss on disposal is reflected in income. No amortization is recorded in the year of disposition.

Only capital assets with costs in excess of $5,000 are capitalized. Capital allocations received for asset additions are amortized into revenue over the same period as the amortization expense. 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 School District 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 received as a liability.

Deferred revenue also includes contributions for capital expenditures, unexpended and expended:  Unexpended Deferred Capital Revenue represent externally restricted supported capital

funds provided for a specific capital purpose received or receivable by the jurisdiction, but the related expenditure has not been made at year-end. These contributions must also have stipulations that meet the definition of a liability per PS 3200 when expended.

 Expended Deferred Capital Revenue represent externally restricted supported capital funds that have been expended but have yet to be amortized over the useful life of the related capital asset. Amortization over the useful life of the related capital asset is due to certain stipulations related to the contributions that require that the school jurisdiction to use the asset in a prescribed manner over the life of the associated asset.

Liability for Contaminated Sites

Contaminated sites are a result of contamination being introduced into the air, soil, water, or sediment of a chemical, organic, or radioactive material, or live organism that exceeds an environmental standard. A liability for remediation of a contaminated site is recognized at the best estimate of the amount is determinable. The best estimate of the liability includes all costs directly attributable to remediation activities and is reduced by expected net recoveries based on information available at August 31, 2016. At each financial reporting date, the School District reviews the carrying amount of the liability. Any revision required to the amount previously recognized is accounted for in the period revisions are made. The School Jurisdiction continues to recognize the liability until it is settled or otherwise extinguished. Disbursements made to settle the liability are deducted from the reported liability when they are made.

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20

Asset Retirement Obligations

Liabilities are recognized for statutory, contractual or legal obligations associated with the retirement of tangible capital assets when those obligations result from the acquisition, construction, development or normal operation of the assets. The obligations are measured initially at fair value, determined using present value methodology, and the resulting costs are capitalized into the carrying amount of the related asset. In subsequent periods, the liability is adjusted for the accretion of discount and any changes in the amount or timing of the underlying future cash flows. The capitalized asset retirement cost is amortized on the same basis as the related asset and the discount accretion is included on the Statement of Operations. At this time, no asset retirement obligations have been identified and, thus, no liability has been recorded.

Pensions

Pension costs included in these audited 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 Grande Prairie Public School District 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 jurisdiction is included in both revenues and expenses. For the school year ended August 31, 2016, the amount contributed by the Government was $5,333,689 (2015 - $5,663,631)

The School District participates in the multi-employer pension plan, Local Authorities Pension Plan, and does not report any unfunded liabilities. The expense for this pension plan is equivalent to the annual contributions of $1,536,856 for the year ended August 31, 2016 (2015 - $1,466,278). At December 31, 2015, the Local Authorities Pension Plan reported an actuarial deficiency of $923,416,000 (2014 - $2,454,636,000).

Program Reporting

The District’s operations have been segmented as follows:

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

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

 Plant Operations and Maintenance: The operation and maintenance of all school buildings and maintenance shop facilities.

 Transportation: The provision of regular and special education bus services (to and from school).

 Board & System Administration: The provision of board governance and system-based / central office administration, including administration facilities.

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21

Program Reporting - continued

 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 revenues and expenses are reported by program, source, and object on the Schedule of Program Operations.

Operating and Capital Reserves

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. Capital reserves are restricted to capital purposes and may only be used for operating purposes with approval by the Minister of Education. Reserves are disclosed in the Schedule of Changes in Accumulated Surplus.

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 School District recognizes a financial instrument when it becomes a party to a financial instrument contract.

Financial instruments consist of cash and cash equivalents, accounts receivable, bank indebtedness, accounts payable and accrued liabilities, debt and other liabilities. Unless otherwise noted, it is management’s opinion that the School District is not exposed to significant credit and liquidity risks, or market risk, which includes currency, interest rate and other price risks.

All 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 de-recognition 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.

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22

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 judgment. Actual results could differ from those estimates. Significant areas requiring the use of management estimates relate to the potential impairment of assets and rates for amortization.

Trusts Under Administration

The School District has property that has been transferred or assigned to it to be administered or directed by a trust agreement or statute. The District holds title to the property for the benefit of the beneficiary.

Trusts under administration have been excluded from the financial reporting of the District. Trust balances can be found in Note 8.

3. ACCOUNTS RECEIVABLE

2016 2015

Alberta Education - Capital $ 4,834,122 $ 2,739,956

Alberta Education – Grants 88,642 1,704,492

Treasury Board and Finance – Supported debenture principal 778,414 1,120,710

Treasury Board and Finance- Accrued interest

on supported debentures 36,358 51,428

Other Province of Alberta 41,354 38,101

Federal Government 239,298 149,389

Other Alberta School Jurisdictions 141,241 16,035

Local Clubs and Organizations - 22,603

Other 337,040 226,128

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23 4. OTHER NON-FINANCIAL ASSETS

2016 2015 Urban Schools Insurance Consortium

Share of Accumulated Funds $110,767 $126,372 Alberta Municipal Finance Corporation - Share 10 10 Alberta Association of Municipal Districts and Counties

Patronage Reserve 765 765

$111,542 $127,147

5. BANK INDEBTEDNESS

The School District has bank financing available to a maximum of $3,500,000 (2015 - $3,500,000) that bears interest at the bank prime rate minus 0.25%. This line of credit is secured by a borrowing bylaw and a security agreement covering all revenue of the School District. There was no balance outstanding on the line of credit at August 31, 2016 or August 31, 2015.

6. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

2016 2015

Alberta Capital Finance Authority-Accrued interest on

supported debenture debt $ 36,358 $ 51,428

Alberta Health Services 110 282,282

Other Alberta School Jurisdictions 15,900 181,492

Alberta Municipalities 13,252 16,293

Benefit Costs - -

Trade payables and accrued liabilities 2,580,241 1,104,035

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24 7. DEFERRED REVENUE Deferred Revenue August 31 2015 Add: Restricted Funds Received/ Receivable Deduct: Restricted Funds Expended Deferred Revenue August 31 2016 Alberta Education:

Infrastructure Maintenance Renewal $ 1,652,773 $ 1,276,670 $ 376,103 $

Bridge CTS to Teacher - 68,000 20,000 48,000

Technology in the Classroom 51,072 - 51,072 -

Innovative Classroom Technology 139,472 - 139,472 -

Student Learning Assessment 3,978 3,954 3,978 3,954

Charles Spencer High School Equipment Support

70,588 - 35,294- 35,294

265.110 1,724.727 1,526486 463,351

Other Deferred Revenue:

Donations 344,833 8,789 315,460 38,162

Fees 445,325 313,784 430,875 328,234

Other 180,404 15,982 94,489 101,897

Total Unexpended Deferred Operating Revenue 1,235,672 2,063,282 2,367,310 931,644

Unexpended Deferred Capital Revenue 3,601,589 3,009,330 5,593,446 1,017,473

Expended Deferred Capital Revenue 116,233,176 54,929,482 4,766,279 166,396,379

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25

7. DEFERRED REVENUE – continued

Deferred Revenue August 31 2014 Add: Restricted Funds Received/ Receivable Deduct: Restricted Funds Expended Deferred Revenue August 31 2015 Alberta Education:

Infrastructure Maintenance Renewal $ 36,181 $ 2,062,856 $ 2,099,037 $ -

Technology Infrastructure 44,858 - 44,858 -

Technology in the Classroom 73,108 - 22,036 51,072

Innovative Classroom Technology 170,152 - 30,680 139,472

Student Learning Assessment - 3,978 - 3,978

Charles Spencer High School Equipment Support - 70,588 - 70,588

324.299 2,137.422 2,196,611 265,110

Other Deferred Revenue:

Donations 307,019 158,332 120,518 344,833

Fees 671,656 445,324 671,655 445,325

Other 113,157 104,200 36,953 180,404

Total Unexpended Deferred Operating Revenue 1,416,131 2,845,278 3,025,737 1,235,672

Unexpended Deferred Capital Revenue 952,548 4,778,121 2,129,081 3,601,589

Expended Deferred Capital Revenue 103,868,834 15,748,429 3,384,088 116,233,175

Total Deferred Revenue $ 106,237,513 $ 22,471,878 $ 7,638,955 $ 121,070,436

8. TRUSTS UNDER ADMINISTRATION

These balances represent assets that are held in trust by the jurisdiction. They are not recorded on the statements of the District.

2016 2015

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26

9. DEBT

2016 2015

(a) Debenture Debt - Supported $ 778,413 $ 1,120,709

The debentures are issued from the Alberta Capital Finance Authority to finance construction of school buildings, bear interest at rates ranging from 7.625% to 10.625% per annum (7.625% to 11.500% - 2015) and mature in 2017 through 2020. The debenture debt is fully supported by Alberta Finance.

Debenture repayments required in each of the next four fiscal years are as follows:

Principal Interest Total

2016 - 2017 325,334 67,896 393,230 2017 – 2018 313,151 39,332 352,483 2018 – 2019 106,671 12,011 118,682 2019 – 2020 33,257 3,207 36,464 Total $ 778,413 $ 122,446 $ 900,859 (b) Debt – Unsupported

Currently, there are no unsupported debentures, capital loans, mortgages or capital leases held by the School District.

10. PREPAID EXPENSES:

Prepaid Expenses consist of the following:

2016 2015

Prepaid insurance $56,348 $56,757

Benefit Costs 114,090 132,648

Facility Lease 33,161 33,161

Bull Creek Wind Power 330,306 -

Prepaid Supplies, Services and Contracts 533,905 632,495