School Jurisdiction Code:

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2012
[School Act, Sections 147(2)(a), 148,151(1) and 276]

Fort McMurray Public School Disrict No. 2833

Legal Name of School Jurisdiction

231 Hardin St, Fort McMurray AB T9H 2G2

Mailing Address

Phone 780-799-7900

Fax: 780-743-2655

Telephone and Fax Numbers

SCHOOL JURISDICTION MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING

The financial Statements of

Fort McMurray PublicSchool DisrictNo.2833

presented to Alberta Education have been prepared by school jurisdiction management which has responsibility for their preparation, integrity and objectivity. The financial statements, including notes, have been prepared in accordance with generally accepted accounting principles and follow format prescribed by Alberta Education.
In fulfilling its reporting responsibilities, management has maintained internal control systems and procedures designed to provide reasonable assurance that the school jurisdiction's assets are safeguarded, that transactions are executed in accordance with appropriate authorization and that accounting records may be relied upon to properly reflect the school jurisdiction's transactions. The effectiveness of the control systems is supported by the selection and training of qualified personnel, an organizational structure that provides an appropriate division of responsibility and a strong system of budgetary control.
Board of Trustees Responsibility

The ultimate responsibility for the financial statements lies with the Board of Trustees. The Board reviewed the audited financial statements with management in detail and approved the financial statements for release.
External Auditors

The Board appoints external auditors to audit the financial statements and meets with the auditors to review their findings. The external auditors were given full access to school jurisdiction records.
Declaration of Management and Board Chairman

To the best of our knowledge and belief, these financial statements reflect, in all material respects, the financial position and results of operations and cash flows for the year in accordance with generally accepted accounting principles and follow the financial reporting requirements prescribed by Alberta Education.
BOARD CHAIR

Mr. Jeff Thompson

Name
SUPERINTENDENT

C^^^^^^V^^T^
/ Signature

Mr. Dennis Parson

Name

'

( ^jJ^T' (/srt*Qt2r?<2S
Slgrrafure

Name

December 3,2012
Board-approved Release Date

c.c. ALBERTA EDUCATION, Financial Reporting & Accountability Branch

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

EMAIL: Robert.Mah@gov.ab.ca
PHONE: (780) 427-3855 (Toll free 310-0000) FAX: (780)422-6996

School Jurisdiction Code:

TABLE OF CONTENTS

Page

STATEMENT OF FINANCIAL POSITION

STATEMENT OF CASH FLOWS

STATEMENT OF CHANGES IN NET ASSETS

STATEMENT OF CAPITAL ALLOCATIONS

NOTES TO THE FINANCIAL STATEMENTS

page 2

Independent Auditors' Report

To the Board of Trustees of the Fort McMurray Public School District No. 2833

We have audited the accompanying financial statements ofthe Fort McMurray Public School District No. 2833, which comprise the statement of financial position as at August 31,2012, and the statements of revenuesand expenses, cash flows, changes in net assets, and capital allocations for the year then ended, and a summary ofsignificant
accounting policies and other explanatory information. Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation ofthese financial statements in accordance v/ith Canadian generally accepted accounting principles, 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 onour audit. We conducted ouraudit 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 An audit involves performing procedures toobtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment ofthe risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internalcontrol relevant to the entity's preparation and fair presentation of the financial

statements are free from material misstatement.

statements in orderto 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 ofaccounting policies used and the reasonableness ofaccounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.

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

In ouropinion, the financial statements present fairly, in all material respects, the financial position ofthe Fort McMurray Public School District No. 2833 as at August 31, 2012 and the results ofits operations, cashflows, changes in net assets, and capital allocations for the year then ended in accordance with Canadian generally
accepted accounting principles.

AfA/P
December 3, 2012

Fort McMurray. Alberta

Chartered Accountants

Page 3

School Jurisdiction Code:

3260

STATEMENT OF FINANCIAL POSITION

as at August 31, 2012

(in dollars)
2012 2011

(Restated)
ASSETS

Current assets

Cash and temporary investments Accounts receivable (net after allowances) Prepaid expenses
Other current assets

(Note 3) (Note 4)

S11,794.448
S1.931,948

517,881.249
$1,268,401

S775.046
SO

$564,347
SO

Total current assets

S14.501.442

S19.713.997
S675.291

Trust assets Long term accounts receivable Long term investments

(Note 5) (Note 6)

S643.871 S350.000
SO

$350,000
SO

Capital assets
Land

(Note 7)
S4.092.703 $4,092,703

Construction in progress Buildings

Less: accumulated amortization

$170,380
S126,699.637

S33,967,015

(S49.592.409)
S11,056.887

S77,107.228

$44,792,275
$2,606,167 S173,887
S85.632.047 S106.371.335

Equipment
Less: accumulated amortization
Vehicles

(S7.838.973)
$46.1,311

S3.217.914

Less: accumulated amortization

(S346.583)

$114.728
S84.702.953 S100.198.266

Total capital assets

TOTAL ASSETS LIABILITIES

Current liabilities

Bank indebtedness Accounts payable and accrued liabilities Deferred revenue Deferred capital allocations Current portion of long term debt
Total current liabilities

(Note 8) (Note 9) (Note 10) (Note 11)

SO

SO

S3.749.319 S2.543.026 S896.002

SO

57,007.886

S2.556.028
S1,836,424
$0

S7.188.347

S11.400.338 S675.291
SO

Trust liabilities

(Note 5)

S643.871
SO

Employee future benefit liabilities Long term debt Supported: Debentures and other supported debt Less: Current portion Unsupported: Debentures and capital loans
Capital leases

SO
SO

SO SO SO SO
SO so

SO so

Mortgages Less: Current portion

SO
SO so

Other long term liabilities Unamortized capital allocations Total long term liabilities
TOTAL LIABILITIES

so

(Note 12)

S77.154.479
S77.798.350 S84.986.697

$77,447,415 S78.122.706 S89.523.044

NET ASSETS Unrestricted net assets

S2.094
56,080.384

$3,658
57,079,384
S7.083.042

Operating reserves

Accumulated operating surplus (deficit)

Investment in capital assets

S6.082.478 S7.548.466 S1.580,625

S9.129,091 S15.211.569

S8.184,624 S1.580,625

Capital reserves

Total capital funds

Total net assets TOTAL LIABILITIES AND NET ASSETS

$9,765,249
S16.848.291 $106,371,335

S100.198.266

Note:

Please input "(Reslated)" in 2011 column heading where comparatives are nol lakcn from the finalized 2010/2011 Audited Financial Statements
filed with Alberta Education.

page 4

School Jurisdiction Code:

3260

STATEMENT OF REVENUES AND EXPENSES

for the Year Ended August 31, 2012

(in dollars)
Budget
Actual 2012 REVENUES Government of Alberta Federal Government and/or First Nations
2012 Actual

2011

~ "(Restated)"""

S66.920.811 5149,239

S64.529.285
SO so so so

S64.301.094

S428.273
$0 SO SO

Other Alberta school authorities

$19,774
SO SO

Out of province authorities

Alberta Municipalities-special tax levies
Fees Other sales and services
Investment income Gifts and donations

(Note 20)

S1,506,252
$831,254

S675.748
$209,269
SO SO SO

S729.719
S350.260 S226.022

S112,097
$415,956

$284,782 $2,377,615
S911.863
SO

Fundraising
Rental of facilities

$1,347,564

$948,231
$0

SO
so

Gains on disposal of capital assets

Amortization of capital allocations

Other revenue Total Revenues EXPENSES Certificated salaries
Certificated benefits

$4,381,915
SO

S4.552.512

$2,575,006
SO

$2,120,160
S72,086,974

$76,633,093

S72,184,634

Non-certificatedsalaries and wages

Non-certificated benefits

(Note22) (Note 22) (Note22)

531,247,179 S7.552.720

$33,340,803
$4,981,959

S29.263.617 $7,045,258 $13,379,454

$14,472,822 $3,527,865
$16,433,559

$14,023,537 $3,289,712 S14.589.975

(Note 22)

$3,189,065
S15.760.420

Services, contracts and supplies

Capital and debt services

Amortization of capital assets Supported Unsupported Total Amortization of capital assets Interest on capital debt
S4.381.915 $636,158 S5.018,073 S4.433.726 $462,966 S4.896.692
S2.575.006

S674.220 S3.249.226

Supported
Unsupported

SO SO SO

$0
SO SO

SO
SO

Total Interest on capital debt

Other interest and charges

SO

S17.597
SO

$0
SO $0

S18.871
SO SO

Losses on disposal of capital assets

Other expense Total Expenses

SO

S78.269.815

S75.122.678

S71.905,911

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES BEFORE

EXTRAORDINARY ITEM

(S1.636.722)
SO

(S3.035.704)
$0

S278.723
SO

Extraordinary Item

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES

(S1.636.722)

(S3.035.704)

S278.723

Note:

Please input "(Restated)" where Actual 2011 comparatives are not as presented in the finalized 2010/2011 Audited Financial Statements filed with
Alberta Education. Budget 2012 comparatives presented are final budget amounts formally approved by the Board.

page 5

School Jurisdiction Code:

3260

STATEMENT OF CASH FLOWS

for the Year Ended August 31, 2012

(in dollars)
2012 2011

CASH FLOWS FROM:

A. OPERATIONS

Excess (deficiency) of revenues over expenses Add (Deduct) items not affectinq cash: Amortization of capital allocations revenue Total amortization expense Gains on disposal of capital assets Losses on disposal of capital assels Changes in:
Accounts receivable

(51,636.722)1
(S4.381.915)
S5.018,073 SO
SO

S278.723
(52,575,006)
53.249.226
SO SO

(S663.547)

51.866,352

Prepaids and other current assets

(5210,699)
50 SO

(561,433)
SO

Long term accounts receivable

Long term investments

SO S376.832 51.913.377
SO

Accounts payable and accrued liabilities

Deferred revenue

(53,258.567)

(513.002)
SO

Employee future benefit liabilitiies

Other (describe)

Met capital allocations/holdback non-cash transactions

53,809.075

(53,337,789)
$1,710,282

Total cash flows from Operations

($1,337,304)

B. INVESTING ACTIVITIES

Purchases of capital assets

Land

SO

SO

Buildings Equipment
Vehicles

(52.867.989)
(S1.220.990)
SO SO

(512,157.607) (S2.192,855)
SO SO S1.220.113

Net proceeds from disposal of capital assets Other (describe) Net holdback non-cash transactions
Total cash flows from Investing activities

(S3.143.775) (S7,232,754)

(S13.130.349)

C. FINANCING ACTIVITIES

Capital allocations
Issue of long term debt

53,148,557
<^n ou

5158.118
SO

Repayment of long term debt

Add back: supported portion

50 SO

SO

so 52.117,677 S2.275.795

Other (describe)

iNet capital allocations non-cash transactions

(5665.300)
S2.483.257

Total cash flows from financing activities

Net cash flows from during the year Cash and temporary investments, net of bank indebtedness, at Aug. 31/11

(S6.086.801)
S17,881.249 S11.794,448

(59,144,272)
527,025,521 517,881,249

Cash and temporary investments, net of bank indebtedness, at Aug. 31/12

Note:

Please input "(Restated)" where Actual 2011 comparatives are not as presented in the finalized 2010/2011 Audited Financial Statements
filed with Alberta Education.

page 6

STATEMENT OF CHANGES IN NET ASSETS

School Jurisdiction Codo:

3260

for the Year Ended August 31, 2012

(in dollars) [4]
(15)

(t)

(2)

131

(5)

(6)

0)

(fi)

101

(10)

(11)

(12)

(13)

(14)

INTERNALLY RESTRICTED NET ASSETS

TOTAL NET ASSETS
INVESTMENT IN CAPITAL UNRESTRICTED NET

TOTAL OPERATING

TOTAL

School & Instruction Related

Operations & Maintenance

Board & System

Administration

Transportation

External Sorvicos

CAPITAL RESERVES

ASSETS

ASSETS

RESERVES

Operaling
Cols.
6+8+10+12+14 Cols. 7+9+11+13+15

Capital
Reserves

Oporating
Reserves

Capital
Reserves

Operating
Reserves

Capital
Reserves

Operaling
Reserves

Capita!
Reserves

Operating
Reserves

Capital
Roservos

Cols. 2+3+4+5

Reserves

Balance at Auqust 31, 2011

Prior period adjustments (describe)

S16.8-18.291

S8.184.624

S3.658

S7.079.384

SI.580.625

S4.279.459

SO

S633.651

S579.339

S1.966.274

S1.001.286

SO

SO

SO

SO

so

SO

SO

SO

SO

SO

SO

SO

SO

SO

SO

SO

so

SO

SO

SO

SO

SO
SO S3.658

SO

SO SO

SO

so

SO
SO S833.651

SO

SO
SO

SO

SO

SO

SO

so

SO

SO S8.184.624

SO S7.079.384

SO

so

SO

SO

SO

so

SO
SO

SO

Adjusted Balance, Aug. 31,

2011

S16.B4B.291 (51.625.722)

S1.580.625

S4.279.459

so

S579.339

SI,966.274

S1.O01.285

SO

SO

SO

Excess (deficiency) of revenues

over expenses

(S1.625.722)
SO

Board funded capital additions Disposal of unsupported capital

assets

SO SO

SO

SO SO

SO

so

SO

SO SO

SO

SO

SO

SO so

SO

SO so

SO

SO

so

SO

Disposal of supported capital

assets (board funded portion)
Direct credits to net assets
SO

so

SO

SO

so

SO

SO

so

so

SO

so

50

Amortization cf capital assets Amortization ol capital allocations

(S5.018.073)
S4.381.915 SO

S5.01B.073 (S4.381.915)
SO

Debt principal repayments

(unsupported) Net transfers to operating reserves

($131,168)
SI. 130.168 SO
SO

S131.169 (SI. 130.168)

SO

SO

$0

5131.168
SO

SO

SO

Net transfers from operating

roservos

($296,517)
so

(S833.G51)
SO
SO

SO SO
SO so

SO

Net transfers to capital rosorvcs

so

Not transfers from capital reserves

Assumption/transfor of other

SO

so

so

so

operations' net assets

SO

SO. S7.548.466

SO S2.094

SO

SO

SO

$0
so

SO
SO

SO

SO

SO S1.001.286

so
so

so
so

so
so

so
so

Balance at August 31, 2012

S15.211.SS9

S5.080.3B4

SI.580.625

S3.982.942

S579.339

S2.097.442

page 7

School Jurisdiction C ade:

STATEMENT OF CAPITAL ALLOCATIONS

(EXTERNALLY RESTRICTED CAPITAL CONTRIBUTIONS ONLY)

for the Year Ended August 31, 2012
(in dollars)
Deferred Unamortized

Capital
Allocations

Capital
Allocations S77.447.415
SO

Balance at August 31, 2011

S1,836.424
SO

Prior period adjustments

Adjusted balance, August 31, 2011
Add:

S1.836.424
i

S77.447.415

Restricted capital allocations from:

Alberta Education school building and modular projects

Other Government of Alberta
Federal Government and First Nations Other sources

S3.144,356

SO
SO SO

Interest earned on provincial government capital allocations Other capital grants and donations Net proceeds on disposal of supported capital assets Insurance proceeds (and related interest)

$4,201
SO

SO
SO

Donated capital assets (amortizable, @ fair market value)

P3, other ASAP and Alberta Infrastructure managed projects

SO $0
SO SO

Transferred in capital assets (amortizable, @ net book value)

Current year supported debenture principal repayment

Expended capital allocations - current year

Deduct:

(S4.088.979)

S4.088.979

Net book value of supported capital assets dispositions, write-offs, or transfer; Other Capital allocations amortized to revenue

SO

so

54,381,915

Balance at August 31, 2012

S896.002

S77,154,479

' Infrastructure Maintenance Renewal (IMR) Program allocations are excluded from this Statement, since those allocations are not externally restricted to capital.

page 8

FORT MCMURRAY PUBLIC SCHOOL DISTRICT NO. 2833

Notes to Financial Statements

August 31, 2012

1. Authority and purpose

The Fort McMurray Public School District No. 2833 (the "District") is governed and delivers education programs under the authority of the School Act, Revised Statutes of Alberta 2000, Chapter S-3. The District is exempt from payment of income tax under Section 149 of the Income
Tax Act.

The District receives instruction and support allocations under Regulation AR 120/2008. The regulation allows for the setting of conditions and use of grant monies. The District is limited on certain funding allocations and administration expenses.
2. Summary of significant accounting policies

The financial statements have been prepared by District management in accordance with Canadian generally accepted accounting principles ("GAAP"). 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 judgments. Actual results could differ from those estimates and approximations. The financial statements have, in management's opinions, been properly prepared within reasonable limits of materiality and within the framework of the accounting policies summarized jbelow:
a) Revenue recoonition

Revenue is recognized as follows: 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. Unrestricted contributions are recognized as revenue when received or receivable. Contributionsin-kind are recorded at fair market value when reasonable.

Externally restricted contributions are deferred and recognized as revenue in the period in which the restriction is complied with. Endowment contributions are recognized as direct increases in net assets in the period in which they are received or receivable.

Capital allocations from the province or other funding agencies are recorded as deferred capital
allocations until spent. Once spent they are transferred to unamortized capital allocations which are amortized to revenue on the same basis as the capital asset acquired by the capital allocation.

Capital allocations relate to capital grants received or to debenture support received for debt originally incurred for the purpose of acquiring capital assets.
b) Capital assets

Capital assets are recorded at cost and are amortized over their estimated useful lives on a
straight-line basis at the following rates:
Years

Buildings Equipment
Vehicles

10-40
5

page 9

FORT MCMURRAY PUBLIC SCHOOL DISTRICT NO. 2833

Notes to Financial Statements

August 31, 2012

2. Summary of significant accounting policies (continued)

b) Capital assets (continued)

Capital assets with cost 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. No amortization is recorded in the year the asset is acquired and on assets recorded as
construction in progress, as the assets are not yet available for use.
c) School generated funds

These are funds which come under the control and responsibility of a school principal for school
activities. They are usually collected, retained, and expended at the school level (e.g. yearbook
sales, graduation fees, field trip fees, etc.).
d) Vacation pay

Vacation pay is accrued in the period in which the employee earns the benefit.
e) Contributed services

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. Because of the difficulty of compiling these hours and the fact that these services are not otherwise purchased, contributed services are not recognized in the financial statements.
f) Pensions Pension costs included in these statements comprise the cost of employer contributions for current service of employees during the year. The current service and past service costs of the Alberta Teachers' Retirement Fund ("ATRF") are

met by contributions by active members and the Government of Alberta. Under the terms of the Teachers' Pension Plans Act, the District does not make pension contributions for certificated staff. The Government portion of the current service contribution to the ATRF on behalf of the District is included in both revenues and expenses. For the school year ended August 31, 2012, the amount contributed by the Government was 32,957,127 (2011 - $2,715,362).
The District participates in the multi-employer pension plan, Local Authorities Pension Plan ("LAPP"), and does not report on any unfunded liabilities. The expense for this pension plan is

equivalent to the annual contributions of $917,610 for the year ended August 31J 2012 (2011 $819,656). At December 31, 2011, the LAPP reported a deficiency of $4,639,390,000 (2010 deficiency of $4,635,250,000).

page 10

FORT MCMURRAY PUBLIC SCHOOL DISTRICT NO. 2833

Notes to Financial Statements

August 31,2012
2. Summary of significant accounting policies (continued)
g) Supplementary integrated Pension Plan

The Alberta School Boards Association ("ASBA") Supplementary integrated Pension Plan ("SIPP"), a multi-employer registered defined-benefit pension plan sponsored by the ASBA which is subject to the provisions of the Alberta Employment Pension Plans Act ("EPPA"), was effective

January 1, 2004. It provides supplementary pension benefitsto a prescribed class of employees.

The plan supplements the LAPP or the ATRF.

The current service contributions in 2012 were $117,400 (2011 - $104,500). The accrued benefit liability at August 31,2012 is $275,600 (2011 - $172,300).
h) Non-reaistered Supplementary integrated Pension Ran

The non-registered SiPP, a retirement program sponsored by the District, commenced In 2005

and provides supplementary pension benefits to a prescribed class of employees. The nonregistered SiPP supplements the LAPP, ATRF, and registered SiPP pension plans.

The cost of the non-registered SiPP post-retirement benefits earned by employees is actuarially
determined using the projected-benefit method prorated on service and management's best estimate of salary and benefit escalation and retirement ages of employees.
i) Prepaid expenses

Certain expenditures incurred and paid before the close of the school year are for specific school supplies which will be consumed subsequent to year-end. Accordingly, they are recorded as prepaid expenses. Prepaid expenses also include the unexpired insurance premiums at year-end and fair value of future rent payments.
j) Financial instruments
Held-for-trading

Any financial instrument whose fair value can be reliably measured may be designated as heldfor-trading on initial recognition or adoption of CICA 3855 Financial Instruments- Recognition and Measurement, even if that instrument would not otherwise satisfy the definition of held-for-trading. The District has designated cash and temporary investments, and trust assets and liabilities on initial recognition as held-for-trading. These instruments are initially recognized at their fair value determined by quotations in an active market. Fair value is approximated by the instruments' initial cost in a transaction between unrelated parties. Transactions to purchase or sell these items are recorded on the settlement date and transaction costs are immediately recognized in excess
(deficiency) of revenues over expenses.

Held-for-trading financial instruments are subsequently measured at their fair value. Net gains and losses arising from changes in fair value include interest income and are recognized immediately
in excess (deficiency) of revenues over expenses.

page 11

FORT MCMURRAY PUBLIC SCHOOL DISTRICT NO. 2833

Notes to Financial Statements

August 31, 2012

2. Summary of significant accounting policies (continued)

j) Financial instruments (continued)
Loans and receivables

The District has classified the following financial assets as loans and receivables: accounts

receivable and long term accounts receivable. These assets are initially recognized at their fair
value. Fair value is approximated by the instruments' initial cost in a transaction between unrelated
parties. Transactions to purchase or sell these items are recorded on the trade date and

transaction costs are immediately recognized in excess (deficiency) of revenues over expenses. Total interest income, calculated using the effective interest method, is recognized in excess
(deficiency) of revenues over expenses.

Loans and receivables are subsequently measured at their amortized cost, using the effective
interest method. Under this method, estimated future cash receipts are discounted over the asset's expected life, or other appropriate period, to its net carrying value. Amortized cost is the amount at

which the financial asset is measured at initial recognition less principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount, and less any reduction for impairment or uncollectability. Gains and losses arising from changes in fair value are recognized in excess [(deficiency) of
revenues over expenses upon derecognition or impairment.
Other financial liabilities

The District has classified the following financial liabilities as other financial liabilities: accounts payable and accrued liabilities. These liabilities are initially recognized at their fair value. Fair value is approximated by the instruments' initial cost in a transaction between unrelated parties. Transactions to purchase or sell these items are recorded on the trade date and transaction costs

are immediately recognized in excess (deficiency) of revenues over expenses.! Total interest
expense, calculated using the effective interest method, is recognized in excess (deficiency) of
revenues over expenses.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Under this method, estimated future cash payments are discounted over the liability's expected life, or other appropriate period, to its net carry value. Amortized cost is,the amount at which the financial liability is measured at initial recognition less principal repayments, and plus or

minus the cumulative amortization using the effective interest method of any difference between
that initial amount and the maturity amount. Gains and losses arising from changes in fair value are recognized in excess (deficiency) of revenues over expenses upon derecognition or impairment.
The District's financial instruments consist of cash and temporary investments, accounts receivable, trust assets, long-term accounts receivable, accounts payable and accrued liabilities,

and trust liabilities. Unless otherwise noted, it is management's opinion that the|District is not
exposed to significant interest, currency or credit risks arising from these financial instruments.
The District has invested surplus funds in accordance with Section 60 (2) (d) of the School Act.

page 12

FORT MCMURRAY PUBLIC SCHOOL DISTRICT NO. 2833

Notes to Financial Statements

August 31, 2012

2. Summary of significant accounting policies (continued)

]) Financial instruments (continued)

Risk management policy

The District, as part of operations, has established avoidance of undue concentrations of risk as

risk-management objectives. In seeking to meet these objectives, the District follows a riskmanagement policy approved by its Board of Trustees.
k) Operating and capital reserves

Reserves are established at the discretion of the Board of Trustees for the District or by external
restrictions to set aside funds for operating and capital expenditures. Such reserves are appropriations of unrestricted net assets.
I) Long-lived assets

Long-lived assets consist of property and equipment. Long-lived assets held for use are measured and amortized as described in the applicable accounting policies.

The District performs impairment testing on long-lived assets held for use whenever events or changes in circumstances indicate that the carrying value of an asset, or group of assets, may not be recoverable. Impairment losses are recognized when undiscounted future cash flows from its use and disposal are less than the assets' carrying amount. Impairment is measured as the amount by which the assets' carrying value exceeds its fair value. Any impairment is included in excess (deficiency) of revenue over expenses for the year.
Prices for similar items are used to measure fair value of long-lived assets.
m) Measurement uncertainty

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Accounts receivable are stated after evaluation as to their collectabiiity and an appropriate allowance for doubtful accounts is provided where considered necessary. Amortization is based on the estimated useful lives of capital assets. Prepaid expenses include amounts based on estimates of the fair value of future rent payments. These estimates and assumptions are reviewed periodically and, as adjustments become necessary, they are reported in excess (deficiency) of revenues over expenses in the periods in which they become known.
n) Future accounting policies

The District will adopt public sector accounting standards for the year ending August 31, 2013 with retrospective application and restatement of the prior school year. The transition is intended to enhance the public accountability and comparability of the financial reporting of the government controlled entities with those of other government organizations. The District has not yet
determined the impact of the adoption of the new standards on its financial statements.
page 13

FORT MCMURRAY PUBLIC SCHOOL DISTRICT NO. 2833

Notes to Financial Statements

August 31, 2012

3.

Cash and temporary investments

2012 2011

Average
effective

Average
effective
Cost Fair value

(market)
yield
Cash Prime less 1.9%

(market) yield
Prime less 1.9%

Cost

Fair value

$ 8,981,275
2.813.173

$ 8,981,275
2.813.173

$ 6,666,662

$ 6,666,662
11.214.587

Temporary
investments Total cash and

11.214.587
i

temporary
investment

$11,794,448

$11,794,448

S17r881,24

$17,881,249

4. Accounts receivable i

2012 Alberta Education Federal Government

2011

$1,099,098 363,068
469,782

$ 422,322 701,191

Other trade payables and accrued liabilities

144,888
$1,268,401

$1,931,948

5. Trust assets and liabilities

These balances represent the cash that is being held in trust by the District.
2012

2011

Scholarships
Music

$ 88,252 1,989
0

$ 87,523
3,156 6,827 567,785

Deferred salary leave plan

Student Health

553,630

$643,871

$675,291

6. Long term accounts receivable

2012 2011

Accommodation loan

$350,000

$350,000

The District has provided a long term accommodation loan for a member of senior management The loan is non-interest bearing and is due upon sale of accommodations or termination of
employment. The loan is secured by the property.

page 14

FORT MCMURRAY PUBLIC SCHOOL DISTRICT NO. 2833

Notes to Financial Statements

August 31,2012

7. Capital assets

Construction Land

In Progress New Building

Buildings
10-40 Years

Equipment
5 Years

Vehicles 5 Years

Total Aug. 31,2012

Total Aug.
31,2011

Estimated useful life Historical cost

September 1,2011
Additions

$4,092,703
0

$33,967,015
170,380

$ 90,035,013
2,697,609 33,967,015

$ 9,835,897 1,220,990

$461,311

$138,391,939
4,088,979

$124,049,954
14,350,462

Transfers in (out)

(33,967,015)
0

Less disposals including write-offs August 31, 2012

Accumulated amortization

(8.477) $126.699.637

$4.092,703

170.380

$11.056,887

$461,311

$142,480,918

S138.391.939

September 1,2011 Amortization expense Transfers in (out)

$ 45,242,738
4,349,671

$ 7,229,730 609,243

$287,424 59,159

$ 52,759,892

$ 49,519,143 3,249,226

5,018,073

Effect of disposals
August 31, 2012
$ 49,592,409
$ 7.838.973

(8.477)

$346.583

$ 57.777,965

$ 52.759,892

Net book value at August 31, 2012

$4:092.703

170.380

.$_IL1Q7.22.8.

$_3..21Zjai4

$114.728

$ 84,702,953

$ 85.632.047

page 15

FORT MCMURRAY PUBLIC SCHOOL DISTRICT NO. 2833

Notes to Financial Statements

August 31,2012

8. Bank indebtedness

At August 31, 2012, the District had an approved line of credit totaling $2,000,000 (2011 $2,000,000). Interest is charged at the prime rate. This line of credit is secured by a yearly borrowing resolution approved by the Board of Trustees. There is no balance outstanding on the
line of credit at August 31,2012.

9. Accounts payable and accrued liabilities

2012

2011

Alberta Education Federal Government

$ 149,971
533,253
3,066,095

$ 226,333

496,739
6,284,814
$7,007.886

Other trade payables and accrued liabilities

10. Deferred revenue

ADD/ ADD:

DEDUCT: 2011/2012

(DEDUCT)
2011/2012

SOURCE AND GRANT OR FUND TYPE

DEFERRED

2011/2012
Restricted

DEFERRED

REVENUE
as at

Funds
Received/

Restricted Funds Adjustments REVENUE

Expended or Returned
Funds

as at
Aug. 81,2012

Aug. 31,2011 Receivable (Paid/Payable)

Alberta Educationrestricted operational funding: Alberta Initiative for SchoolImprovement

Infrastructure Maintenance Renewal Class Size Initiative

$ 228,130 $ 341,286
246.902 0
469,184

669,416
1,163,876
2,227,277
14.676

926,872 2.227,277
0

Other Alberta Education deferred revenue

Other Deterred Revenue:
Student fees

464318
0 619,183

426^93
19,660 52,000 128.392
984,897

1,826,106
168,000 18,400 122.150
1.893,270

1,633,816
19.660 52,000

Edge program fees

Industry funding
Restricted donations

0
0
0 0
$0

168,000
18,400
122,160 1.160377
$2343326

128.352
1.727.290

School-generated funds
tTotal

$2,666.028 $7.366366

$7379366

11. Deferred capital allocations

Deferred capital allocations show the cumulative amount ofcapital funding received for projects which the District had not completed as of the year-end. These projects and deferred capital
allocations are summarized as follows:
2012 2011

Unspent capital modernizationfunding Unspent proceeds from disposal of supported assets Interest earned on funding balances

$ 31,212 200,000
664.790

$ 809,790
200,000
826,634 $1,836.424

$896,002
page 16

FORT MCMURRAY PUBLIC SCHOOL DISTRICT NO. 2833

Notes to Financial Statements

August 31,2012

12. Unamortized capital allocations

Unamortized capital allocations ("UCA") represent the District's net investment in supported

capital assets. Capital allocations are increased by the principal portion of debenture debt repayments and by expenditures made from the deferred capital allocations account. Capital
allocations are amortized over the same period of time as the related assets. Changes in UCA are summarized on the statement of capital allocations.
13. Related-party transactions

Effective 2005/2006, school jurisdictions are controlled by the Government of Alberta according to criteria set out in PSAB 1300. All entities consolidated or accounted for on a modified-equity basis in the accounts of the Government of Alberta are now related parties of school jurisdictions; these include: government departments, health authorities, post-secondary institutions and other school

jurisdictions in Alberta. The District had related-party transactions for the year ended August 31,
2012 with Keyano College recorded on the statement of revenues and expenses and statement

of financial position at the amount ofconsideration agreed upon between the related parties.
Balances 2011-2012
Transactions

Assets (@ cost or net realizable value) $1,099,098

0
0

Liabilities (@ fair value) $614,387

0 0

Revenues

Expenses

Government of Alberta:
Education Finance

$66,160,690
0

$2,957,127
0 0

Other Gov't of Alberta

departments
Other:

760.121

Post-secondary
institutions Other Alberta school
0

0
0

458,900
19.774

153,006
184.343

jurisdictions
TOTAL 2011-2012

$1,099,098 $ 422,322

$614,387 $226,333

$67,399,485
$64,301,094

$3,294,476
$3,255,303

TOTAL 2010-2011

Expenses paid to Keyano College for utilities amount to $141,025 (2011 - $222,013) and for facility rentals amount to $11,981 (2011 -$6,191).
14. Supplementary cash flow information
Interest paid and received
2012

2011

Interest paid
Interest received

$ 17,597 116,298

$ 18,871 272,069

15. Budget amounts

The budget was prepared by the District's management with the Board of Trustees' approval given on April 11, 2011. It is presented for information purposes only and has not been audited.
page 17

FORT MCMURRAY PUBLIC SCHOOL DISTRICT NO. 2833

Notes to Financial Statements

August 31,2012

16. Contingent assets

The District is a member of the Urban Schools Insurance Consortium ("USIC") which facilitates the placement of property and liability insurance coverage for thirteen jurisdictions throughout the Province of Alberta. Premium rebates are received from favorable claims experience and accumulated by the consortium to self-insure a portion of the members' risk. The District's share

of the accumulated consortium funds as at August 31,2012 was $95,313 (2011 - $226,947). This contingent asset is not recorded on the District's statement of financial position. Amounts paid to
USIC are recorded as insurance expense in the year paid.
17. Commitments

Operating leases:

The following operating lease payments are required under the terms of leases expiring through
2014:

2013 2014

$165,552 165,552

Building projects:
The District is committed to further capital expenditures for the construction of Ecole McTavish of approximately $38,000 (2011 - $3,454,000).

18. Economic dependence on related third party

The District's primary source of revenue is from Alberta Education. The District's abinty to continue viable operations is dependent on this funding.
19. Contingent liabilities

The District has lodged three letters of credit; in the amount of $356,000 (2011 - $nil), $30,000 (2011 - $nil), and $30,000 (2011 - $nil) all in the favor of the Regional Municipality of Wood
Buffalo.

20. Fees Item

Gross Receipts $478,270 $728.651

Transportation fees Fees charged for instruction material and supplies

Other fees
Total

$299,331 $.1,506,252

page 18

FORT MCMURRAY PUBLIC SCHOOL DISTRICT NO. 2833

Notes to Financial Statements

August 31, 2012

21. School-Generated Funds

Unexpended school-generated funds, opening balance at August 31, 2011

Fees

984,897

Fundraising
Gifts and donations Grants to schools Other sales and services

196,097 1,002,400 1,320

0

693.453

Total gross receipts

1,893,270

Current year activities - total direct costs including cost of goods sold to raise funds I
Current year activities - uses of funds

(408,435)
(1.318.855) $1,150,877

Unexpended school-generated funds, closing balance at August 31, 2012

22. Remuneration and monetary incentives

The District has paid or accrued expenses for the year ended August 31, 2012 to or on
the following positions and persons in groups:
Performance ERIP's Bonuses / Other

behalf of

Board Members:

FTE Remuneration
1.0 1.0

Benefits

Allowances

Expenses
$12,051 12,117 6,221

Jeff Thompson, Chair Linda Mywaart Stephanie Blackler

15,244 $
14,406

581

$ 7,580 7,163 5,332

4,618 3,449
540

1.0
1.0

10,745 14,406 14,827

Angela Adams
Glenn Cooper

7,163 7,371

2,751 7,247

1.0

2,217

Subtotal

5.0

69,628 $

11,405

$34,609

$40,387

Superintendent:
Dennis Parsons 1.0

215,383 S 193,449 31,020,296

14,169,136

48,260 51,747
7,484,660 3,458,713

$19,800

$11,500
6,000
0
0

$0

$16,842 9,164

Secretary/Treasurer:
Allan Kallal
1.0

6,000
0
0

Certificated teachers

327.4

0
0

Non-certificated - other 264.4

TOTALS

598.8

$45,667,892 $11,054,785

$60,409

$17,500

$0

page 19

FORT MCMURRAY PUBLIC SCHOOL DISTRICT NO. 2833

Notes to Financial Statements

August 31, 2012

23. Change in Accounting Policy The Government of Alberta remits all funds to the Alberta Teachers Retirement Fund (ATRF) on behalf of the District. Historically, this has not been recorded in the District's financial statements. During the year, the Government of Alberta required the District to report these contributions to both the revenue and the expense in the financial statements. Revenue from the Government of Alberta and certificated benefits have increased by $2,715,362 in 2011 to reflect retrospective application of this change in accounting policy. Due to changes in presentation of school generated funds recommended by the Government of Alberta, cash and deferred revenue have both increased by $984,897 as at August 31, 2011.
This had no effect on total net assets. Gross school generated funds revenue of $2,475,334 was

reallocated to gifts and donations, and fundraising by $97,719 and $2,377,615 respectively. Gross school generated funds expense of $2,475,334 was re-allocated to services, contracts and supplies. This had no effect on excess of revenues over expenses.
24. Comparative figures

The comparative figures have been reclassified where necessary to conform to the 2011/2012
presentation.

page 20