2004/05 Audited Financial Statements
An Overview
November 9, 2005
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Agenda
Highlights
Review of Statements
PHRD Schools & Sites
ADLC
Enrolments94/95 03/04 04/05
Proj.
04/05
Actual
Kindergarten-Community
Schools
403 321 274 369
Grades 1-12-Community
Schools
4954 4080 3937 3986
Vista Virtual 0 1107 1108 1238
Total K-12
Excl. Virtual
5357
5357
5508
4401
5319
4211
5593
4355
Average CEU Completion Rate
Jurisdiction
Average
Jurisdiction
Average, excl. Vista Virtual
02/03 (gr. 11 & 12) 24.96 33.76
03/04 (gr. 11 & 12) 19.28 33.20
04/05 (gr. 10-12) 23.05 35.39
NOTE: 1092 of the 1238 Vista Virtual students are in grades 10-12. Because these students only register for 1-2 courses each, their completion average (04/05=7.68) distorts the PHRD Community Schools average.
ADLC Highlights
Total Students Served: 04/05 – 14,651; 3,363.34 FTE 03/04 - 13,449; 3,276.48 FTE % increase = 8.94% (+2.65% FTE)
Funded Students Served: 04/05 – 12,502; 2,254.56 FTE 03/04 - 11,359; 2,161.35 FTE % increase = 10.06% (+4.31% FTE)
04/05 Operating Surplus (Deficit)
Pembina Hills Regional Div. No. 7 $358,675 03/04 = $(116,355)
Alberta DistanceLearning Centre $29,500 03/04 = $198,804
Operating & Capital ReservesPHRD $4.82 million (03/04=$4.72 million)
Represents 11.5% of 04/05 operational expenses (03/04=11%)Operating Reserves only = $2.6 million, or 6.30% of operational expenses
ADLC $0.98 million (03/04=$0.97 million)
Represents 10% of 04/05 operational expenses
(03/04 =10%)
The Statements
A Quick Overview
Statement of Financial Position (aka Balance Sheet)
Primary purpose - to present the PHRD’s economic resources, obligations and net assets (equity) at August 31
Assets - funded by liabilities and/or equity
Balance Sheet - some unique terms
School Generated Funds (SGF) funds under control & responsibility of schools (eg.
yearbook sales, grad fees, etc) Balance Sheet states the ending bank balances of
SGF’s.
Deferred Capital Allocations funds received for capital projects (eg. Block
Modernization funds) that have not been expended at August 31
Balance Sheet - some unique terms
Unamortized capital allocations supported capital funds that have been expended
but have yet to be amortized over the useful life of the applicable assets purchased
Represents the provincial government’s equity in our school buildings
Overview - PHRD Balance Sheet
(in millions)
2005
2004
Assets $24.94 $26.90
Liabilities $16.64 $18.95
Reserves $4.82 $4.72
Equity in Fixed Assets $3.48 $3.23
Total Liabilities & Equity
$24.94
$26.90
Overview - ADLC Balance Sheet
(in millions)
2005
2004
Assets $3.72 $3.35
Liabilities $1.89 $1.55
Reserves $0.98 $0.97
Equity in Fixed Assets $0.85 $0.83
Total Liabilities & Equity
$3.72
$3.35
Statement of Revenues and Expenses (aka Income Statement)
Provides information on PHRD’s operations for the year.Surplus (Deficit) of revenue over expenses represents the change in PHRD’s unrestricted resources as a result of operations for the year.Surplus (Deficit) does not account for unsupported capital additions or transfers to and from reserves.Comparative 2004/05 budget figures are those approved May 12, 2004. They do not account for budget adjustments throughout the year (eg. actual Sept enrolment)
Overview - PHRD Statement of Revenues and Expenses
(in millions)
2005
2004
Revenues $42.13 $41.73
Expenses $(41.77) $(41.84)
Surplus (Deficit) of Revenues over Expenses
$0.36
$(0.11)
Overview - ADLC Statement of Revenues and Expenses
(in millions)
2005
2004
Revenues $10.04 $9.42
Expenses $(10.01) $(9.22)
Surplus (Deficit) of Revenues over Expenses
$0.03
$0.20
Statement of Changes in Net Assets (aka Statement of Changes in Equity)
“Total net assets” = equity Equity represents the jurisdiction’s residual
interest (value) in the assets.
To fully understand the nature of PHRD’s financial activities in the period, information is required about changes to net assets as a result of: Operations Capital assets Assets that are externally and internally restricted.
Statement of Changes in Net Assets (aka Statement of Changes in Equity)
The statement of changes in net assets provides critical financial information and shows the extent to which PHRD’s activities have resulted in an increase or decrease in net assets
Overview - PHRD Statement of Changes in Equity
(in millions) 2005 2004
Operating Reserves:
Schools & Co-op Pool $2.55 $2.11
Support Services (incl. Brd&Sys Admin)
$0.09 $0.28
External Services $0.05 $0.06
Capital Reserves:
Swan Hills Property Disposition $0.03 $0.00
Op. & Maint $0.13 $0.09
Transportation $0.39 $0.60
Reserves @ Regionalization $1.58 $1.58
Total Reserves $4.82 $4.72
Equity in Fixed Assets $3.48 $3.23
Total Net Assets $8.30 $7.95
Overview - ADLC Statement of Changes in Equity
(in millions)
2005
2004
Operating Reserve - General $0.65 $0.74
Operating Reserve - Initiatives
$0.33
$0.14
Capital Reserve $0.00 $0.09
Total Reserves $0.98 $0.97
Equity in Fixed Assets $0.85 $0.83
Total Net Assets $1.83 $1.80
Statement of Cash Flows
Reports and explains the PHRD total changes in cash equivalents as a result of activities during the year PHRD experienced a decrease in cash flow from
the beginning of the year of $251,248 ADLC experienced an increase in cash flow from
the beginning of the year of $905,704 Main contributor to increased cash flow was @ Aug
31/04 PHRD owed ADLC $680,779 vs. @ Aug 31/05, ADLC owed PHRD $115,550 (net difference - $796,329)
PHRD Schools & Sites
Summary Information
Renewed Funding Framework
04/05 marked the 1st year of the Renewed Funding Framework
The renewed framework is an allocation system and is not intended to provide expenditure direction. Jurisdictions have enhanced flexibility to spend funding as they choose to meet needs of their students’ and local priorities
This supports the principle of flexibility
InstructionBudget Surplus/
(Deficit) – Sept/04 (budget adjusted
for actual enrolment)
Actual Surplus/
(Deficit) 2004/05
Community
Schools
$(67,730) $181,429
Co-op Pool $100,000 $259,719
Total Instruction (03/04 = $34,405)
$32,270 $441,148
Instruction
Instructional Operating Reserves @ Aug 31/05 - $2,547,106 (03/04=$2,105,958) Community Schools - $1,362,717 (03/04=$1,181,285) Co-op Pool - 800,293 (03/04=$234,545) WAN (telephone system) - 0 (03/04=$306,029) Vista Virtual - 384,096 (03/04=$384,096)
Average program cost per FTE student in Kindergarten to Grade 12 - $6,566 03/04=$6,381
Co-op Pool04/05 Surplus/(Deficit) = $259,719 03/04 = $66,013
Variance Analysis
Revenue Expenses
Class Size Initiative - +$737,093 Class Size Initiative - +$737,093
Small School by Necessity - +$333,973 Video Conferencing/Smart Board (cost shared with AISI) - +$85,000
Socio Economic Status - +$125,308 VOIP Communication System - +$378,873
Stabilization Funding - +$117,432 Other net variances - +$2,481
FNMI - +$69,360
Hutterite funding - +$20,000
Video-Conferencing 1 time funding - +$60,000
Co-op Pool (cont.)
Operating Reserve @ Aug 31/05 = $800,293
Recommendation for disbursement of reserve to be discussed at November 24, 2005 Administrators’ meetingRecommendation will be placed on
December 14, 2005 Regular Board Meeting Agenda
Barrhead Composite High School
04/05 Surplus/(Deficit) - $(8,313) 03/04 = $85,775
04/05 budgeted transfer from operating reserve(deficit) - $75,000
Average high school CEU completion rate – 38.49 (gr. 10-12) 03/04 (gr 11&12) = 37.77
Operating Reserve @ Aug 31/05 - $323,972
Barrhead Elementary School
04/05 Surplus/(Deficit) - $34,79903/04 = $(43,350)
04/05 budgeted Surplus/(Deficit) - $(64,066)
Operating Reserve @ Aug 31/05 - $205,195
Busby School
04/05 Surplus/(Deficit) - $(2,472)03/04 = $(8,579)
04/05 budgeted Surplus/(Deficit) - $(6,493)
Operating Reserve @ Aug 31/05 - $51,040
Dapp School
04/05 Surplus/(Deficit) - $(19,112)03/04 = $13,291
03/04 budgeted Surplus/(Deficit) - $(15,000)
Operating Reserve @ Aug 31/05 - $168,404
Dunstable School
04/05 Surplus(Deficit) - $7,48003/04 = $(7,043)
04/05 budgeted Surplus/(Deficit) - $(2,277)
Operating Reserve @ Aug 31/05 - $94,874
Eleanor Hall School
04/05 Surplus/(Deficit) - $(266) 03/04 = $(32,043)
04/05 budgeted Surplus/(Deficit) - $696
Operating Reserve @ Aug 31/05 - $(32,976) A 2 year deficit reduction plan has been developed
by the school, with approx. $20,000 of the accumulated deficit to be recaptured in the 05/06 school year and the balance in 06/07
Fort Assiniboine School
04/05 Surplus/(Deficit) - $3,71203/04 = $(19,588)
Includes Forestry Funding of $82,341
04/05 budgeted Surplus/(Deficit) - $(22,783)
Average high school CEU completion rate – 33.26 (gr 10-12) 03/04 (gr 11&12)=29.69
Operating Reserve @ Aug 31/05 - $52,323
Hillman Colony School04/05 Surplus/(Deficit) - $(2,990)
Low enrolment continues to be a challenge 04/05 – 2 Kindergarten students; 14 students in grades
1-9
05/06 change in ESL funding for Hutterite students in Colony Schools – 5 yr. Max. funding limit may be waived for individual students
Operating Reserve @ Aug 31/05 - $3,010
Jarvie School
04/05 Surplus/(Deficit) - $(19,664)03/04 = $5,118
04/05 budgeted Surplus/(Deficit) - $(20,489)
Operating Reserve @ Aug 31/05 - $871
Meadowview School
04/05 Surplus/(Deficit) - $(17,181) 03/04 = $662
$17,810 in Federal CAP funding remaining for future years’ expenditures
04/05 budgeted Surplus/(Deficit) - $(29,746)
Operating Reserve @ Aug 31/05 - $36,997
Neerlandia School
04/05 Surplus/(Deficit) - $22,43203/04 = $(11,531)
04/05 budgeted Surplus/(Deficit) - $4,740
Operating Reserve @ Aug 31/05 - $142,488
R.F. Staples Secondary School
04/05 Surplus/(Deficit) - $38,273 03/04 = $(131,058)
04/05 budgeted Surplus/(Deficit) - $(78,176)
Average high school CEU completion rate – 37.19 (gr 10-12) 03/04 (gr 11&12)=34.81
Operating Reserve @ Aug 31/05 - $152,788
Sunniebend Colony School
04/05 Surplus/(Deficit) - $4,153
Low enrolment continues to be a challenge 04/05 – 3 Kindergarten students; 11 students in grades
1-10
05/06 change in ESL funding for Hutterite students in Colony Schools – 5 yr. Max. funding limit may be waived for individual students
Operating Reserve @ Aug 31/05 - $5,153
Swan Hills School04/05 Surplus/(Deficit) - $65,425 03/04 = $56,394
04/05 budgeted Surplus/(Deficit) - $32,214
Average high school CEU completion rate – 37.54 (gr 10-12) 03/04 (gr 11&12)=29.53
Operating Reserve @ Aug 31/05 - $64,393
Vimy School
04/05 Surplus/(Deficit) - $29,614 03/04 = $(34,895)
04/05 budgeted Surplus/(Deficit) - $28,235
Operating Reserve @ Aug 31/05 - $(4,129)
W.R. Frose School
04/05 Surplus/(Deficit) - $(17,384) 03/04 = $(7,994)
04/05 budgeted Surplus/(Deficit) - $10,901
Operating Reserve @ Aug 31/05 - $(31,313)A 2 year deficit reduction plan is being
developed by the school
Westlock Elementary School
04/05 Surplus/(Deficit) - $55,65503/04 = $(77,073)
04/05 budgeted Surplus/(Deficit) - $72,546
Operating Reserve @ Aug 31/05 - $132,915
Outreach Centres
04/05 combined surplus/(deficit) - $7,268 03/04 = $(122,981)
Combined CEU completion rate – 15.91 (gr. 10-12) 03/04 (gr 11&12) = 15.14
Combined Operating Reserves @ Aug 31/05 - $(3,288) Accumulated deficit to be recovered in 05/06
Vista Virtual
A virtual school operated by PHRD
PHRD contracts the ADLC OnLine Program to provide instruction. Similarly, other school jurisdictions contract ADLC OnLine to provide instruction for their virtual programs.
1,238 students were registered with Vista Virtual in 04/05 03/04 – 1,107
High School CEU completion rate = 7.68 (gr 10-12) 03/04 (gr 11&12)=6.69 lower completion due to students taking only a portion of their
courseload thru OnLine
04/05 instructional funding received - $1,863,223
Operations & Maintenance of Schools
04/05 Surplus/(Deficit) - $(102,983) 03/04=$(1,639)
04/05 Surplus/(Deficit), excluding gain on sale from Swan Hills House - $(130,972) Projected Surplus/(Deficit) - $(178,470)
Responsibility for funding of PO&M transferred from Alta. Infrastructure & Transportation to Alta. Education effective April 1, 2005 PO&M funding for boards from April 1-Aug 31/05 not finalized
Based April 1-Aug 31/05 estimate on letter received from AIT in October, 2004
Based on summer of 2005 announcement from AIT, 05/06 PO&M funding should increase approx. $300,000 over 04/05 levels
Operations & Maintenance of Schools
Average cost per FTE student in Kindergarten to Grade 12 - $1,345 03/04 - $1,329
Average cost, excluding debenture & BQRP costs - $766 03/04 - $729
Reserves @ Aug 31/05 Operating - $(80,735) Capital (for future fleet replacements) - $131,084 Capital –Swan Hills Property Disposition (for future
upgrades to Swan Hills School) - $27,990
Student Transportation
04/05 Surplus/(Deficit) - $(6,237) 03/04=$102,823
04/05 budgeted Surplus/(Deficit) - $46,129 An annual surplus is required in the transportation
area to help fund the cost of replacement buses for the division owned fleet
Student TransportationAverage cost per student transported - $1,320
02/03 - $1,261 03/04 - $1,335
Operating Reserve @ Aug 31/05 - $109,351
Capital Reserve (for future fleet replacements) - $392,962 Represents funding for approx. 5 buses
Board & System Administration
04/05 Surplus/(Deficit) - $32,903 03/04=$(35,778)
Average cost per FTE student in Kindergarten to Grade 12 - $355 (03/04 - $375) Variance attributable to replacement of computer
workstations in 03/04 as well as employee recognition program start-up costs
Average cost per ADLC Funded FTE student - $175
Operating Reserve @ Aug 31/05 - $56,906
External Services
04/05 Surplus/(Deficit) - $(6,156)03/04=$(147,356)
Operating Reserves @ Aug 31/05:Bhd. Adult Learning - $22,519Bhd. Adult Literacy - $12,719SHARE (Swan Hills) - $15,041
Alberta Distance Learning Centre
ADLC - Operating
04/05 Surplus/(Deficit) - $29,50003/04=$198,804
Operating Reserve at August 31/05 - $981,684 Initiatives Operating Reserve - $330,009General Operating 651,675