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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