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PUBLIC
2013-2014 DRAFT AUDITED FINANCIAL STATEMENTS
A generous man will himself be blessed, for he shares his food
with the poor.
Proverbs 22:9
Created, Draft First Tabling Review
November 18, 2014 November 20, 2014
D. Bilenduke, Senior Coordinator of Finance
P. De Cock, Comptroller of Business Services & Finance
RECOMMENDATION REPORT
Vision:
At Toronto Catholic we transform the world
through witness, faith, innovation and action.
Mission:
The Toronto Catholic District School Board is an
inclusive learning community rooted in the love of
Christ. We educate students to grow in grace and
knowledge and to lead lives of faith, hope and
charity.
G. Poole
Associate Director of Academic Affairs
A. Sangiorgio
Associate Director of Planning and Facilities
S. Pessione
Associate Director of Business Services,
Chief Financial Officer and Treasurer
Angela Gauthier
Director of Education
REPORT TO REGULAR BOARD
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A. EXECUTIVE SUMMARY
This report provides the Board with the 2013-14 draft audited financial statements for approval.
The 2013-14 Financial Statements reflect an in-year Public Sector Accounting Board (PSAB)
surplus of $26.740 million and an accumulated surplus of $123.453 million. The in-year
operating surplus / (deficit) position for Ministry reporting is ($8.903) million in-year deficit and
an accumulated ($6.647) million deficit.
B. PURPOSE
1. The attached statements for fiscal 2013-14 have been audited by KPMG following their
Audit Plan presented to and accepted by the Audit Committee at their meeting on
September 24, 2014.
2. The Auditors gave an in depth presentation on their audit findings to the Audit
Committee at their meeting held on November 18, 2014.
3. Committee members were given an opportunity to question staff as well as KPMG both
with and without staff present.
C. BACKGROUND
Per Regulation 361(9)(1) of the Education Act, the Audit Committee reviews the draft annual
audited Financial Statements before they are presented to Board for approval.
D. EVIDENCE/RESEARCH/ANALYSIS
1. Attached is the 2013-14 draft audited Financial Statements for the Toronto Catholic
District School Board. The 2013/14 Financial Statements reflect an in year Public Sector
Accounting Board “PSAB” surplus of $26.740 million and an accumulated surplus of
$123.453 million.
2. This report also provides a final financial report based on Ministry reporting requirements
(Appendix A) and the explanations of material budget variances for revenues and
expenditures are as follows:
i. Revenue changes due to decline in enrolment of 235 Average Daily Enrolment
(ADE) amounting to $2.5M. In addition, Capital revenues have been moved to
Deferred Capital Contributions and Proceeds of Disposition.
ii. Teachers’ Salaries and Benefits expenses have increased due to the following:
a) 1 of 3 Professional Development days paid and Maternity Leaves increased above
budget by $2.8M.
b) New attendance recognition payment amounting to $0.8M
c) Teachers Salary expenses increased due to teacher qualifications and related work
experience upgrades.
d) Benefits and Gratuity expenses increased by $8.1M
e) Average Teacher Salaries increased by $280 resulting in an overall increase in
salaries by $1.6M
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iii. Occasional teacher deployment is less than planned due to new sick leave plan.
iv. Education Assistants expenditure category is lower than the budgeted due to reduced
supply educational assistant costs.
v. The Classroom Computers expenditure category is lower than budget due to minor
capital equipment expenditures reclassified as capital fixed assets.
vi. The cost of commissions and health insurance provided to Visa students increased
due to the higher number of non-resident Visa Students.
vii. The cost of professionals and paraprofessionals are lower than budget due to savings
realized in contracted support staff and minor capital equipment expenditures have
been reclassified as capital fixed assets.
viii. Library and Guidance salaries are higher than budgeted due to higher average salaries
and movement on the salary grid.
ix. In-School Administration salary expenses are lower than budget due to the averaging
of 10 month and 12 month School Secretary salaries.
x. Co-ordinators and Resource Teachers are higher than budgeted due to movement on
the salary grid and benefits
xi. Continuing Education expenditures increased due to larger than anticipated number of
instructional hours delivered.
xii. Trustee expenses for Constituency Assistants, telephone, data and internet services,
professional development decreased due to less usage.
xiii. Board Administration expenses are lower than budgeted due to savings realized in
legal fees, savings in printing costs by implementing an electronic agenda
management system and online pay stubs, and the reclassification of minor capital
equipment costs to capital fixed assets.
xiv. Transportation expenditure variance is due to an invoice for 2013-14 expensed in the
2012-13 fiscal year.
xv. School Operations and Maintenance expenses is lower than budget due to minor
capital equipment expenditures reclassified to capital fixed assets.
3. The in-year deficit for Ministry reporting is ($8.903) million for 2013-14 and the
accumulated deficit is ($6.647) million. A summary of In-Year and Accumulated
Operating Surplus / (Deficit) has also been attached as Appendix B.
4. The Ministry of Education Financial Statements and Schedules (EFIS) for the 2013-14
fiscal year have been finalized and submitted by the November 15, 2014 deadline to
avoid a 50% monthly cash flow penalty. Any changes arising from Board approval of the
statements will result in the resubmission of EFIS without penalty.
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5. After a comprehensive discussion at the Audit Committee meeting of November 18, 2014
the committee endorsed the 2013-14 Draft Financial Statements as attached and
recommends their approval by the Board of Trustees.
E. STAFF RECOMMENDATION
That the Regular Board of Trustees approves the 2013-14 audited financial statements as
recommended by the Audit Committee.
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APPENDIX A
Toronto Catholic District School Board
Interim Financial Report
For the Period Ending August 31, 2014
($ thousands)
Actual Revenues &
Spending 2013-14
Variance to
Rev. Est
Budget
(Estimates)
Budget
(Revised
Estimates)
$ Increase
(Decrease)
% Increase
(Decrease)to Aug 31/14 to Aug 31/14 % of Budget Spent Notes
OPERATING REVENUES
Legislaive Grants (Grants for Student Needs) 494,817 494,488 (329) (0.1%) 509,162 14,674 102.97%
Municipal Taxes 423,497 423,497 (0) (0.0%) 405,721 (17,776) 95.80%
Tuition Fees 7,582 10,098 2,516 33.2% 9,655 (443) 95.61%
Rental Income 2,591 2,585 (6) (0.2%) 2,870 285 111.03%
Various Other Revenues 49,993 14,469 (35,524) (71.1%) 7,768 (6,701) 53.68%
OPERATING REVENUES 978,480 945,137 (33,343) (3.4%) 935,175 (9,962) 98.95% 1
OPERATING
Classroom Instruction
Teachers 2
Salary 510,806 475,968 (34,838) (6.8%) 480,225 (4,257) 100.89%
Benefits 56,027 55,668 (359) (0.6%) 66,625 (10,957) 119.68%
Other 540 540 - 0.0% 615 (75) 113.87%
Occasional Teachers 3
Salary 19,648 19,648 (0) (0.0%) 16,765 2,884 85.32%
Benefits 2,279 2,415 136 5.9% 1,489 926 61.65%
Other - - 0.0% - - 0.00%
Educational Assistants 4
Salary 40,823 40,486 (337) (0.8%) 39,829 657 98.38%
Benefits 11,289 12,422 1,133 10.0% 12,415 7 99.95%
Other - - - 0.0% - - 0.00%
Classroom Computers 6,872 6,622 (250) (3.6%) 2,741 3,881 41.39% 5
Textbooks and Supplies 19,275 19,106 (169) (0.9%) 20,899 (1,793) 109.38% 6
Professionals and Paraprofessionals 7
Salary 34,707 34,548 (158) (0.5%) 34,091 457 98.68%
Benefits 6,901 7,165 265 3.8% 8,486 1,320- 118.43%
Other 6,898 7,859 960 13.9% 4,199 3,660 53.43%
Library and Guidance 8
Salary 16,542 16,506 (35) (0.2%) 18,897 (2,391) 114.48%
Benefits 2,316 2,311 (5) (0.2%) 2,664 (353) 115.28%
Other - - - 0.0% 2 (2) 0.00%
Staff Development
Salary 1,705 1,705 - 0.0% 1,728 23- 101.35%
Benefits 409 409 - 0.0% 341 68 83.30%
Other 953 953 - 0.0% 486 468 50.93%
Department Heads
Salary 2,433 1,526 (907) (37.3%) 1,334 192 87.42%
Benefits - - - 0.0% 6 6- 0.00%
Other - - - 0.0% - - 0.00%
Total Classroom 740,422 705,857 (34,565) -4.67% 713,835 (7,978) 101.13%
Budget Assessment Variance Assessment
2013-14
Change
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APPENDIX A
Toronto Catholic District School Board
Interim Financial Report
For the Period Ending August 31, 2014
($ thousands)
Actual Revenues &
Spending 2013-14
Variance to
Rev. Est
Budget
(Estimates)
Budget
(Revised
Estimates)
$ Increase
(Decrease)
% Increase
(Decrease)to Aug 31/14 to Aug 31/14 % of Budget Spent Notes
Non-Classroom
Principal and Vice-Principals
Salary 35,626 36,885 1,259 3.5% 37,005 (120) 100.32%
Benefits 4,413 4,741 328 7.4% 4,805 (64) 101.34%
Other 139 139 (0) (0.0%) 24 116 16.94%
School Office 9
Salary 17,915 17,858 (57) (0.3%) 16,642 1,216 93.19%
Benefits 4,574 4,944 370 8.1% 4,528 416 91.59%
Other 1,742 1,762 20 1.1% 1,443 319 81.90%
Co-ordinators and Consultants 10
Salary 6,347 6,485 138 2.2% 7,050 (565) 108.72%
Benefits 825 836 11 1.3% 1,117 (281) 133.59%
Other 124 124 (0) (0.0%) 14 110 11.48%
Continuing Education 11
Salary 19,132 19,132 - 0.0% 19,135 (3) 100.02%
Benefits 2,511 2,511 - 0.0% 3,118 (608) 124.20%
Other 1,869 1,869 - 0.0% 2,533 (664) 135.50%
Total Non-Classroom 95,217 97,286 2,069 2.2% 97,413 (127) 100.13%
Administration
Trustees 12
Salary 245 245 - 0.0% 241 4 98.56%
Benefits - - - 0.0% 9 9- 0.00%
Other 595 595 - 0.0% 399 196 67.06%
Director/Supervisory Officers
Salary 3,325 3,359 33 1.0% 3,244 115 96.59%
Benefits 732 739 7 1.0% 519 220 70.26%
Other - - - 0.0% 404 (404) 0.00%
Board Administration 13
Salary 11,625 11,834 209 1.8% 11,067 767 93.52%
Benefits 2,557 2,707 150 5.9% 2,785 78- 102.88%
Other 4,740 4,490 (250) (5.3%) 2,740 1,750 61.03%
Total Administration 23,819 23,969 41 0.2% 21,409 2,560 89.32%
Transportation 14
Salary 893 893 - 0.0% 901 9- 100.98%
Benefits 263 263 - 0.0% 242 21 92.10%
Other 27,196 26,963 (233) (0.9%) 25,358 1,605 94.05%
Total Transportation 28,351 28,118 (233) (0.8%) 26,501 1,617 94.25%
School Operations and Maintenance 15
Salary 45,213 45,213 - 0.0% 42,577 2,635 94.17%
Benefits 12,609 12,839 230 1.8% 12,570 269 97.90%
Other 32,638 31,677 (960) (2.9%) 29,775 1,903 93.99%
Total School Operations and Maintenance 90,459 89,729 (730) (0.8%) 84,922 4,807 94.64%
TOTAL OPERATING 978,268 944,959 (33,310) (3.4%) 944,079 879 99.91%
IN YEAR OPERATING SURPLUS/DEFICIT 212 178 (33) (8,904)
ESTIMATES AND ACTUAL OPENING SURPLUS 2,255
CUMULATIVE UNAPROPRIATED SURPLUS/DEFICIT 212 178 (33) (6,649)
Variance Assessment
2013-14
Change
Budget Assessment
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APPENDIX AToronto Catholic District School Board
Interim Financial Report
For the Period Ending August 31, 2014
EXPLANATIONS OF MATERIAL BUDGET VARIANCES FOR REVENUES AND EXPENDITURES
1
2
a) 1 of 3 Professional Development days paid & Maternity Leaves increased above budget ($2.8M)
b) New attendance recognition payment ($0.8M)
c) Teacher Salary expenses increased due to teacher qualifications & related work experience upgrades ($1.9M)
d) Benefit & Gratuity expenses increased ($8.1M)
e) Average Teacher Salaries increased by $280 resulting in an overall increase in salaries ($1.6M)
3
4
5
6
7
8 Library & Guidance Average Salaries is higher than budgeted due to movement on the salary grid.
9
10
11
12
13
14 Transportation variance is due to invoices for 2013-14 expensed in the 2012-13 fiscal year.
15
Continuing Education expenditures increased due to larger than anticipated number of instructional hours
Trustee expenses for Constituency Assistants, Telephone Data and Internet Services, Professional Development
decreased due to less usage.
Board Administration expenses are lower than budgeted due to savings realized in Legal fees, savings in printing
costs by implementing E-scribe, online pay stubs and movement of the minor capital equipment costs to capital.
In-School Administration salary expenses is lower than budget due to the averaging of 10 month and 12 month
School Secretary Salaries.
School Operations and Maintenance expenses is lower than budget due to eligible capital expenditures
reclassified to fixed assets.
Occasional teachers deployment less than planned due to new sick leave plan.
Savings in Educational Assistants due to reduced Supply costs
Classroom computers are lower than budgeted as eligible expenditures have been reclassified as capital fixed
The cost of commissions and health Insurance provided to Visa Students increased due to the higher number of
The cost of Professionals and Paraprofessionals decreased due to savings realized in Contracted Support Staff
and the reclassification of minor capital equipment expenditures to capital fixed assets.
Co-ordinators and Resource Teachers are higher than budgeted due to movement on the salary grid and benefits.
Revenues changes due to decline in enrolment by 235 ADE ($2.5M) and Capital Revenues moved to Deferred
Capital Contributions and Proceeds of Disposition.
Teachers Salaries & Benefits expenses increased due to the following:
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Appendix B
Toronto Catholic District School BoardSummary of In-Year & Cummulative Operating Surplus/(Deficit)
2005-2006 Actual
2006-2007 Actual
2007-2008 Actual
2008-2009 Actual
2009-2010 Actual
2010-2011 Actual
2011-2012 Actual
2012-2013 Actual
2013-2014 Actual
$ Millions $ Millions $ Millions $ Millions $ Millions $ Millions $ Millions $ Millions $ Millions
Revenue 841.728 834.328 871.667 907.520 901.754 921.858 966.144 972.779 1,014.064
Expense 846.064 848.836 869.809 899.742 890.504 918.520 965.421 976.628 1,022.967
In-Year Surplus/(Deficit) (4.336) (14.508) 1.858 7.778 11.250 3.338 0.723 (3.849) (8.903)
Prior Year Accumulated Surplus/(Deficit) - (4.336) (18.843) (16.985) (9.207) 2.043 5.381 6.104 2.255
Accumulated Surplus/(Deficit) (4.336) (18.843) (16.985) (9.207) 2.043 5.381 6.104 2.255 (6.648)
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Submission Version: Board Working VersionSchool Board Name: Toronto Catholic DSB
School Year: 2013-14Cycle: Financial Statements
Schedule 5 - Detail of Accumulated Surplus/(Deficit)
10-November-14 9:29:20 AM Schedule 5 Page: 1
Accumulated Surplus(Deficit) - Balance at
September 1
Transfer to Committed Capital or
Committed Sinking Fund Interest Earned
Accumulated Surplus(Deficit) - In-Year
Increase (Decrease)
Accumulated Surplus(Deficit) - Balance at
August 31Col. 1 Col. 2 Col. 3 Col. 4
1 Available for Compliance - Unappropriated1.1 Operating Accumulated Surplus 2,255,424 - -8,902,650 -6,647,226
1.2 Available for Compliance - Unappropriated 2,255,424 - -8,902,650 -6,647,2262 Available for Compliance - Internally Appropriated2.1 Retirement Gratuities 0 - - 0
2.2 WSIB 0 - - 0
2.3 School Renewal (previously included in pupil accommodation debt reserve)
0 - - 0
2.3.1 Amounts previously included in pupil accommodation debt reserves that are not related to NPP or School Renewal
0 - - 0
Other Purposes - Operating:
2.4 Reserve for Working fund Classroom Carryover 2,399,637 - 748,967 3,148,604
2.5 Reserve for Working Fund PDT Funds Contract Req 1,223,301 - -80,399 1,142,902
2.6 0 - - 0
2.7 0 - - 0
2.8 0 - - 0
2.8.1 Committed Sinking Fund interest earned 579,190 - -32,723 546,467
2.8.2 Committed Capital Projects 0 - - 0
.....from Schedule 5.5
Other Purposes - Capital:
2.9 0 - - 0
2.10 Playground Equipment Brd Motion June 2012 240,447 - -79,274 161,173
2.11 0 - - 0
2.12 0 - - 0
2.13 0 - - 0
2.14 Available for Compliance - Internally Appropriated 4,442,575 - 556,571 4,999,1463 Total Accumulated Surplus (Deficit) Available for
Compliance (Sum of lines 1.2 and 2.14)6,697,999 - -8,346,079 -1,648,080
4 Unavailable for Compliance4.1 Employee Future Benefits - retirement gratuity liability -101,381,258 - 8,448,438 -92,932,820
4.1.1 Employee Future Benefits - Early Retirement Incentive Plan 0 - - 0
4.1.2 Employee Future Benefits - Retirement, Health, Dental, Life Insurance Plans, etc
-3,122,916 - 346,991 -2,775,925
4.1.3 Employee Future Benefits - other than retirement gratuity -10,314,785 - 225,961 -10,088,824
4.2 Interest to be Accrued -5,326,077 - -33,721 -5,359,798
4.4 School Generated Funds 8,003,914 - 548,407 8,552,321
4.7 Revenues recognized for land 202,156,255 - 25,549,630 227,705,885
4.8 Total Accumulated Surplus (Deficit) Unavailable for Compliance
90,015,133 - 35,085,706 125,100,839
5 Total Accumulated Surplus (Deficit) 96,713,132 - 26,739,627 123,452,759
Appendix C
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APPENDIX D
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