Audited Financial Statements

Key Financial Information 2017-2018

Significant Changes over the Prior School Year

Reducing operating reserves was again the flavour for the 2017-18, although not to the same degree as the previous year.  This was partially due to attempting to scale back plans slowly to come to a balanced budget approach for the future, rather than sudden and sharp programming changes.  The preliminary budget set in the spring of 2016 planned a deficit of $3.3M. This was increased in the Fall Budget Update to $3.9M.

While a $3.9M deficit was anticipated, it was recognized that spending at the planned levels was not sustainable in the long term and was even a bit concerning at the time.  There was a strong message that the following school year would need to show a balanced budget after two years of aggressive attempts to reduce reserves. This cautious warning overshadowed much of the plans for the 2017-18 school year.

Projected revenues in the spring were estimated at $83,609,303.  This was revised to $86,054,805 in the Fall Budget Update, mainly to reflect changes to enrolment between budget versions.  Actual revenues were $86,746,248 showing an increase of $691,265 over the more accurate November 30th budget figures. Analysis of the line by line items in revenue show that most of the additional revenue is attributed to the Federal student rates, primarily in the inclusive education fold, resulting in additional unplanned revenues of $855,000. Approximately $400,000 is owing to the reciprocal agreement with Beaver Lake Cree Nation.  There were line by line variances in Fees, Gifts & Donations, Other Sales & Services and Fundraising, totalling approximately $500,000 in additional revenue mostly in Fees and Other Sales & Services.

Anticipated expenditures saw a stark difference in one envelope attributing to most of the underspending.  Budgeted expenditures were originally expected to be $89.9M, but finished at $87,203,298. Both Instruction and Board & System did not reach the expected spending levels, but the Instruction envelope accounts for most of the variance.  As a dollar amount this is a large figure, but as a percentage it is merely 3.5% off the projected figures.

At the mid-year review, it was anticipated that spending was not on target with projections.  At that time, funds were redistributed to other budget centres including $600,000 pushed out to schools with the message that this was to assist with reducing their projected site deficits.  At the end of the year, analysis of the Average Teacher Salary showed that it would not hit the budgeted number of $102,700. This resulted in savings of $535,000, plus an additional savings of $400,000 in pension remittances.  Also, underspending in contracted services and supplies for instruction of approximately $400,000, combined with $700,000 across all other instruction line items, explains the variance between the budgeted figures and actual expenditures.  

Hence with additional unplanned revenues and underspent expenditures attributing to a better than expected financial position, this allows NLPS to make some operational changes in 2018-19 that take advantage of the financial resources so that drastic operational changes are not required suddenly.