Audited Financial Statements

Key Financial Information 2018-2019

Significant Changes over the Prior School Year

In 2018-2019, NLPS continued to draw down its operating reserves. The year started with an accumulated surplus from operations, including capital reserves, of $7,354,395 and anticipated drawing these down to $6,092,161, resulting from a planned deficit of $1,262,234, based on the Fall Budget Update. The original budget developed in the spring, and used in the financial statement preparation and comparison had a planned deficity of $1,215,487, indicating that overall there were minor adjustments between the spring and fall budgets.

Projected revenues for the Division were estimated at $84.2 million in the spring and revised to $85.5 million in the fall. Likewise, associated expenditures were originally estimated at $85.4 million and revised to $86.7 million. Much of the change is attributed to actual enrolment reporting stronger than anticipated. The spring enrolment forecase is based on a mix of historical attrition modeling weighed alongside physical student counts and fall registration plans of parents in the spring.

As NLPS has been spending down reserves for a few years, there was a cautious approach to planning for the 2018-2019 school year. On the instructional side, the use of reserves was primarily for inclusive education and allowing schools who have reserves to use them. Both Plant Operations and Maintenance and Transportation would operate in a deficit position that would be covered by an internal transfer of instructional funds. External services also planned on using reserves, as NLPS employs a cost-recovery approach on this program and is not wanting to charge parents rates that would contribute to a surplus.

Instructional costs showed a reduction in expenditures from the prior year, but also less than budgeted in the Fall Budget Update. Coincidentally, the anticipated expenditures for instruction were almost on part with the prior year actual expenditures. However, spending in instruction came up $600,000 shy of what was budgeted, primarily attributed to less staffing costs in the non-certificated benefit portion.

In the planning stages, the transfers in Plant Operations and Maintenance and Transportation totaled $1,050,000. This was consistent with prior year's transfers into these two envelopes. However, both areas overspent and the shortfall totaled $1,822,165. In part, some of the increased expenditures were attributed to government legislation for the transportation industry, but the revenue was also less than budgeted for Transportation. On the Plant Operations and Maintenance side, there were over expenditures in utilities, contracted services and supplies, and wages that were not budgeted sufficiently.

In summary, overall revenues were on target with what was reported in the Fall Budget Update, with actual revenue for NLPS coming in at $85 million compared to $85.5 million, or 99.4% achieved. On the expenditure side, actual expenditures in total were $85.6 million compared to $86.7 million or 98.7% of target. It is evident that increased security and improvements in internal controls were beneficial in financial oversight of the Division.