Financial Statement

Discussion and Analysis

For the Year Ended June 30, 2023
Introduction

The following is a discussion and analysis of the School District’s financial performance for the fiscal year
ending June 30, 2023. This report is a summary of the School District’s financial activities based on
currently known facts, decisions or conditions. The results of the current year are discussed in
comparison with the prior year, with an emphasis placed on the current year. This report should be read
in conjunction with the School District’s Financial Statements for this same period.

SD35 Langley – Strategic Plan

Purpose – Mission
To inspire all learners to reach their full potential and create a positive legacy for the future.

Vision
An innovative, inspiring and unified learning community.

Core Principles
In serving first our students and each other in the partnership of students, teachers, support staff,
administrators, trustees and parents, we are committed to the following principles.

 Recognizing, developing and supporting the unique worth of each individual.

 Enabling each individual to make his or her best possible contribution.

 Understanding that all have the capacity to learn when given the opportunity.

 Providing a safe, healthy and caring learning and working environment in which all feel confident
and have a sense of belonging.

 Building interdependent relationships fostering integrity, recognizing diversity, demonstrating

respect and nurturing trust.

 Communicating honestly and openly.

 Delivering opportunities for informed choices.

 Valuing learning as a lifelong process for all.

 Acknowledging personal accountability for our roles and responsibilities.

Our financial discussion and outcome is framed by this vision with key outcomes achieved during the year
overviewed below.

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 1

Enrolment and Staffing
The operations of the School District are dependent on continued grant funding from the Ministry of
Education and Child Care primarily based on student enrolment, students identified with special needs
and other demographic and geographical factors. Expenditures are primarily associated with staffing and
related compensation and benefits. Student enrolment and staffing levels are reflected below.

Enrolment
Provincial Grant funding is driven by student enrolment, unique student needs and unique geographical
requirements, with additional funding for adult and summer school education. School District student
enrolment is summarized as follows.
Increase
Increase (Decrease)
(Decrease) From
2022-23 2021-22 2022-23 From Budget
Actual Actual Budget 2021 - 2022 Variance

Standard (Regular) Schools 22,762.8750 21,662.4375 22,016.0097 1,100.4375 746.8653

Continuing Education 10.6250 12.6250 17.0000 (2.0000) (6.3750)
Alternate Schools 255.0000 221.0000 240.0000 34.0000 15.0000
Total FTE 23,028.5000 21,896.0625 22,273.0097 1,132.4375 755.4903

Increase
Increase (Decrease)
(Decrease) From
2022-23 2021-22 2022-23 From Budget
Actual Actual Budget 2021 - 2022 Variance

Online Learning (DL) 203.5000 236.7500 103.0000 (33.2500) 100.5000

Home Schooling 45.0000 69.0000 17.0000 (24.0000) 28.0000
Course Challenges 95.0000 107.0000 91.0000 (12.0000) 4.0000
Summer school 397.0000 344.5000 470.3750 52.5000 (73.3750)
Adult Education 46.6250 50.2500 28.0000 (3.6250) 18.6250
Total FTE 787.1250 807.5000 709.3750 (20.3750) 77.7500

The bar graph shows that regular student enrolment has been increasing at a steady rate over the past
few years. FTE growth rates show increases of 0.8%, 4.7%, and 5.1% in 2020, 2021, 2022. (Data Source:
Ministry of Education and Child Care September 1701). The following bar graphs contain projections for
the years 2023 to 2025 that align with our 3-year financial plan.

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 2

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 3
FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 4
Financial Highlights

The School District’s revenue is heavily reliant upon the Operating Grant from the provincial government
which is based on enrolment levels and other factors. 73.3% of the District’s revenue is from the
Operating Grant, 14.7% is provincial grant funding within the Special Purpose Fund, 4.5% of revenue is
generated from International Education Programs, 3.7% associated with the recognition of Deferred
Capital Revenue, and the balance through other revenue programs such as other Special Purpose
Funding, Facility Rental and Lease Income, Investment Income and Summer School Programs.

90.8% of the School District’s operating expenditures are associated with salaries and benefits. The
balance of expenditures is related to supplies and services including utilities, professional development
and maintenance.

Financial Results for 2022/2023

Operating SPF Capital Total
Revenues
Provincial Grants 237,026,588 47,400,728 (48,542) 284,378,774
Municipal Grants - - 49,187 49,187
Tuition 14,525,986 - - 14,525,986
Other Revenue 1,197,372 8,090,885 - 9,288,257
Rentals and Leases 958,124 - - 958,124
Investment Income 2,335,884 - 35,190 2,371,074
Gain (Loss) on Disposal of Tangible Capital Assets - - - -
Amortization of Deferred Capital Revenue - - 11,802,330 11,802,330
Total Revenues 256,043,954 55,491,613 11,838,165 323,373,732
Expenses -
Instruction 207,962,634 54,048,222 - 262,010,856
District Administration 9,190,467 573,643 - 9,764,110
Operations and Maintenance 27,013,025 760,287 - 27,773,312
Transportation and Housing 2,402,177 - - 2,402,177
Amortization of Tangible Capital Assets - - 16,115,753 16,115,753
Debt Services - - - -
Total Expenses 246,568,303 55,382,152 16,115,753 318,066,208

Surplus (Deficit) 9,475,651 109,461 (4,277,588) 5,307,524

Net Transfers to/from other Funds
Local Capital (7,307,635) (109,461) 7,417,096 -
Total Net Transfers (7,307,635) (109,461) 7,417,096 -
Total Surplus (Deficit) for the year 2,168,016 - 3,139,508 5,307,524
Surplus (Deficit) beginning of the year 15,227,108 - 152,058,330 167,285,438
PPA Adjustment - ARO (31,219,375) (31,219,375)
Surplus (Deficit) beginning of the year (restated) 15,227,108 - 120,838,955 136,066,063
Acummulated Surplus (Deficit) 17,395,124 - 123,978,463 141,373,587

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 5

Operating Accounts
The School District was in a surplus position of $2,168,016 when factoring in capital from operating. This
is favorable when compared to a deficit budget of $3.91M. The following are some explanations for the
variances:

• Revenue is higher than the Amended Budget due mainly to higher February and May counts for
Enrollment, higher Other Revenue and higher than expected increase in investment income as
interest rates increased.
• Other Professionals was $109K over budget due to higher than normal vacation payouts.
• Higher substitute costs due to vacancies coverage and resulting in higher expenditures on support
staff replacement costs and teacher replacement costs.
• Support Staff and Educational Assistant Costs was $1.42 million under budget due to lower than
budgeted Educational Assistant Costs (offset by higher casual costs), higher than budgeted salary
recoveries and staggered hiring for educational assistants throughout the school year.
• Lower average Teacher Salary and Vacancies (partially offset by higher substitute costs) was a factor
in salaries being $3.23 million under budget.
• Benefits rate of 23.6% is lower than the previous year’s rate of 24.0%, actual benefit costs were
$0.336 million lower than budgeted due to lower salary costs.
• Spending on Services and Supplies was approximately $1.076 million over budget due to higher
spending patterns for schools and at the District level. Part of this increase was due to the impact of
inflation and labour savings at cost centres that was used to purchase services and supplies. This was
offset by $696K savings in Utilities due mainly to a very mild spring.

Special Purpose Accounts

All Special Purpose Funds tracked within the Amended Budget including the Classroom Enhancement
Fund accounts discussed below. Last year, the District received funding via the Provincial Safe Return to
School Grant, Federal Safe Return to Class Fund, Seamless Day Kindergarten and the Early Childhood
Education Dual Credit Program. New funding for this year included Student and Family Affordability, Just
B4, Early Years to Kindergarten and Early Care & Learning Funding.

Capital Accounts
Funding for capital expenditures is primarily through the Ministry of Education and Child Care with some
funding provided through locally generated capital funds.

There were three schools under construction during the year (Shortreed and Vanguard Seismic Projects
along with PEMS Seismic which was approved in spring 2022). Smaller projects include a new playground
at Coghlan Elementary, new windows at PEMS and updated plumbing at DWP Secondary.

Classroom Enhancement Fund (CEF)

In the spring of 2017, the Ministry of Education and Child Care committed funding to school districts to
meet the obligations of the restored collective agreement language for class size and composition. For
the 2022-23 school year $34.28 million was provided to Langley and was utilized for the hiring of 336.29
(annualized) FTE teachers, to pay for an estimated $5.80 million in remedy and to pay for an estimated
$0.940 million in additional overhead costs.

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 6

 Statement of Financial Position

The following table provides an analysis of the School District’s Net Financial Position for the fiscal years
ended June 30, 2023 and 2022.

Cash increased $11.9 million over the prior year. Cash held in the bank for current operational needs
totals $39.2 million. In addition, $37.2 million is held on deposit with the Ministry of Finance and is
available within 1-2 days if required. This Ministry Central deposit account earns interest at 5.45% (as of
June 30, 2023), comparable with one year or longer locked in GIC rates. These rates have increased from
a rate of 2.20% in the Spring of 2022 to manage inflation and other factors in the economy.

Jun 30, 2023 Jun 30, 2022 Increase

Actual Actual (Decrease) Change

Financial Assets
Cash and cash equivalents $ 80,535,166 $ 68,626,554 $ 11,908,612 17.35%
Accounts Receivable
Due from Province - Ministry of Education and Child Care 2,277,133 1,363,027 914,106 67.06%
Other 2,081,178 1,745,281 335,897 19.25%
Total Financial Assets 84,893,477 71,734,862 13,158,615 18.34%

Liabilities
Accounts payable and accrued liabilities 40,002,764 33,489,412 6,513,352 19.45%
Unearned revenue 14,753,661 12,568,131 2,185,530 17.39%
Deferred revenue 5,941,626 4,821,535 1,120,091 23.23%
Deferred capital revenue 239,899,125 236,606,509 3,292,616 1.39%
Employee future benefits 6,802,763 6,432,552 370,211 5.76%
Asset Retirement Obligation 31,631,664 31,631,664 - 0.00%
Total Liabilities 339,031,603 325,549,803 13,481,800 4.14%

Net Financial Assets (Debt) (254,138,126) (253,814,941) (323,185) 0.13%

Non-Financial Assets
Tangible capital assets 392,966,928 387,805,305 5,161,623 1.33%
Prepaid expenses 2,544,785 2,075,699 469,086 22.60%
Total Non-Financial Assets 395,511,713 389,881,004 5,630,709 1.44%

Accumulated surplus $ 141,373,587 $ 136,066,063 $ 5,307,524 3.90%

Accumulated Surplus
Capital $ 123,978,463 $ 120,838,955 $ 3,139,508 2.60%
Operating 17,395,124 15,227,108 2,168,016 14.24%
$ 141,373,587 $ 136,066,063 $ 5,307,524 3.90%

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 7

Cash assets at June 30 are categorized as follows.

Jun 30, 2023 Jun 30, 2022 Increase

Actual Actual (Decrease)

Funds deposited with ScotiaBank $ 39,203,817 $ 29,115,284 $ 10,088,533

Central deposit - Ministry of Finance 37,191,621 35,641,997 1,549,624
School generated funds 4,139,728 3,869,273 270,455
$ 80,535,166 $ 68,626,554 $ 11,908,612

This cash is required to fulfill the payment and liability obligations as follows.

Jun 30, 2023 Jun 30, 2022 Increase

Actual Actual (Decrease)

Obligations
Trade payables $ 7,937,356 $ 4,093,554 $ 3,843,802
Salaries and benefits payable 24,527,462 22,164,831 2,362,631
Accrued vacation pay 4,650,373 4,471,882 178,491
Due to Province - Ministry of Education and Child Care - - -
Other payable 2,887,573 2,759,143 128,430
Unearned Revenue - International students program 14,443,982 12,409,950 2,034,032
Unearned Revenue - Other 309,679 158,181 151,498
Deferred Revenue - Special Purpose Funds 5,941,627 4,821,535 1,120,092
Employee Future Benefits 6,802,763 6,432,552 370,211
Deferred Capital Revenue - Unspent 2,124,931 1,084,972 1,039,959
Local Capital 417,394 186,853 230,541
Other - - -
-
Assets
Receivable - Ministry of Education and Child Care (2,277,133) (1,363,027) (914,106)
Receivable - Other (2,081,178) (1,745,281) (335,897)
Prepaid expense (2,544,787) (2,075,699) (469,088)

63,140,042 53,399,446 9,740,596

Accumulated Operating Surplus 17,395,124 15,227,108 2,168,016
$ 80,535,166 $ 68,626,554 $ 11,908,612

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 8

The difference between the cash assets and the liabilities is reflected as the accumulated surplus.

Accounts Receivable $1.2M balance receivable at June 2023 from the Ministry of Education and Child
Care pertaining to LTA grievance settlement.

Accounts Payable and Other Liabilities Trades Payable increase of $3.84M is primarily due to remedy
owing, increase in Other Payables $0.128 million due primarily to an increase in Pro D Liability, increase
in Salaries and Benefits Payable of $2.36 million due to payroll timing and cutoffs and an increase in
Accrued Vacation pay $0.178 million.

Unearned Revenue is related to International Education tuition for subsequent years received in
advance.

Deferred Revenues – Special Purpose Funds Increase of $787K is primarily due to unspent funds in CEF
Staffing in Fiscal 2023 due to not being able to fill positions. A further $474K relates to unspent Student
Affordability Fund.

Deferred Capital Revenue $988K SSAC collected from Township of Langley and Langley City.

Tangible Capital Assets increased $5.16 million primarily due to additions pertaining to buildings.

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 9

Financial Analysis – Comparison to Budget and Last Year

Statement of Operations

The Statement of Operations is a consolidation of three funds – Operating, Special Purpose and Capital
Funds. Each of these three funds are reviewed separately below.

Statement of Operations – Operating Fund

Revenue

Grant Revenue
Increase
(Decrease)
Jun 30, 2023 Jun 30, 2022 2022 - 2023 From Budget
Actual Actual Budget Jun 30, 2022 Variance

Provincial Grants - Ministry of Education and Child Care $ 236,820,687 $ 214,797,458 $ 236,341,493 $ 22,023,229 $ 479,194
Provincial Grants - Other 205,900 361,844 192,400 (155,944) 13,500
$ 237,026,587 $ 215,159,302 $ 236,533,893 $ 21,867,286 $ 492,695

Grant Revenues were $21.87 million higher than last year due to increased enrollment and increases in
funding for per student amounts $12.85 million plus $9.09 million funding for collective agreements.
This combined with higher enrollment for students with special needs (also, per student rates increased)
resulting in additional grants. There was also an increase of $0.031 million for Graduated Adults, $0.010
Policing and Security Branch Funding, and $0.054 million in Child Care Funding. This was offset by $0.166
million lower revenue from Industry Training Authority.

Grant Revenues were $0.493 million higher than budget mainly due to higher February and May
enrolment counts.

International Education Revenues

Increase
(Decrease)
Jun 30, 2023 Jun 30, 2022 2022 - 2023 From Budget
Actual Actual Budget Jun 30, 2022 Variance

Tuition - International 14,390,254 14,511,083 14,304,093 (120,829) 86,161

$ 14,390,254 $ 14,511,083 $ 14,304,093 $ (120,829) $ 86,161

International Education revenues were $0.121 million lower due to lower retained revenue from timing
of refunds.

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 10

Other Revenues

Increase
(Decrease)
Jun 30, 2023 Jun 30, 2022 2022 - 2023 From Budget
Actual Actual Budget Jun 30, 2022 Variance

Tuition - Other 135,732 211,620 148,715 (75,888) (12,983)

Other Revenue 1,197,372 1,186,049 853,918 11,323 343,454
Rental and Leases 958,124 803,541 906,278 154,583 51,846
Investment Income 2,335,884 542,083 1,823,041 1,793,801 512,843
$ 4,627,112 $ 2,743,293 $ 3,731,952 $ 1,883,819 $ 895,160

Tuition Other was down from last year due to lower Summer School and Continuing Education Fees.
Rental and Lease Revenue was higher than last year due to the increased easing of COVID-19
restrictions, resulting in higher film and community rental revenues. There were higher interest rates for
the Central Deposit Program and investments with the bank resulting in higher investment income.

Expenses

Teachers

Increase
(Decrease)
Jun 30, 2023 Jun 30, 2022 2022 - 2023 From Budget
Actual Actual Budget Jun 30, 2022 Variance

Teachers $ 108,327,190 $ 102,335,468 $113,071,232 $ 5,991,722 $ (4,744,042)

Teacher Salary Expenses were $5.99 million Teacher Salary Expenses were $4.74M lower
higher than last year due to additional FTE, than budget due mainly to the lower average
collective agreement salary increases, salary teacher salary and vacancies at school
increments per the collective agreement and startup and second semester. This is offset by
grid step increases. There were additional higher than budgeted TTOC costs.
teachers hired due to enrollment increases.

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 11

Principals & Vice-Principals

Increase
(Decrease)
Jun 30, 2023 Jun 30, 2022 2022 - 2023 From Budget
Actual Actual Budget Jun 30, 2022 Variance

Principals and Vice-Principals 13,532,809 12,657,068 13,374,955 875,741 157,854

Principals and VP Salaries were $875K Principals and VP Salaries were $158K higher
higher due to wage increases. $705K was at due to higher than budgeted wage increases.
school level and balance was at the district A further $10K was due to vacation accrual.
level.

Educational Assistants
Increase
(Decrease)
Jun 30, 2023 Jun 30, 2022 2022 - 2023 From Budget
Actual Actual Budget Jun 30, 2022 Variance

Educational Assistants 22,000,428 19,843,362 23,732,377 2,157,066 (1,731,949)

Actual expenses were $2.2M higher than last Actual expenses were lower than budget
year. There were 52.9 SEA positions added in by $1.7M due to late starts and vacancies,
the 22/23 Budget $1.7M; 2 Youth Care this is offset by higher casual costs and
Workers from CLINK $70K; 2 Bus Monitors higher than budgeted costs for vacation
added $48K; contractual wage increases payouts. Also, actual budget variance is
$1.3M. Actuals were lower due to staggered $440K overstated as this amount should
starts throughout the school year. have been included with Support Staff
salaries for wage increases.

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 12

Support Staff

Increase
(Decrease)
Jun 30, 2023 Jun 30, 2022 2022 - 2023 From Budget
Actual Actual Budget Jun 30, 2022 Variance

Support Staff 18,848,163 16,858,777 18,538,599 1,989,386 309,564

Actual expenses were $1.9M higher than last Expenditures were $310K higher than
year due to increased bus driver required for budget. The budget is $440K understated as
additional route $35K; Added 3 Custodial this amount should have been included with
positions due to increased number of the Support Staff budget and was instead
portables and divisions $155K; added 1 included in the Educational Assistant salary
Technical Support Specialist in IT $50K; budget. Support Staff salaries are $130K
higher overtime costs $205K and contractual below budget. This was due to lower than
wage increase of $1.2M. Annualized Support budgeted vacation and sick day payout costs
position for admin support and maintenance ($130K).
of $140K. There was also higher vacation &
sick day payouts $115K.

Other Professionals

Increase
(Decrease)
Jun 30, 2023 Jun 30, 2022 2022 - 2023 From Budget
Actual Actual Budget Jun 30, 2022 Variance

Other Professionals 5,849,060 5,475,566 5,740,045 373,494 109,015

Actual expenses were $373K higher than last Actual expenses were $109K above budget
year due to Exempt positions hired part way primarily due to vacation payouts.
through the year; combined with wage
increases.

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 13

Substitutes

Increase
(Decrease)
Jun 30, 2023 Jun 30, 2022 2022 - 2023 From Budget
Actual Actual Budget Jun 30, 2022 Variance

Substitutes 12,149,778 10,553,864 9,482,849 1,595,914 2,666,929

Actual expenses were $1.59M higher than last Substitute costs were $2.7M higher than
year. TTOC replacement vacancy costs were budgeted. Actual casual support expenses were
$675K higher than last year due to increased $1.52M higher than budgeted due mainly to the
vacancies and late starts. Casual replacement backfilling for vacancies and sick costs for SEAs
costs were $242K higher. Other TTOC and Custodians. TTOC Replacement Vacancy
replacement costs were $678K greater than last costs were $730K higher due to increased
year partially due to collective wage increases. vacancies and late starts at the beginning of the
school year and for the second semester. Other
TTOC Costs were $417K higher than budget.

Benefits

Increase
(Decrease)
Jun 30, 2023 Jun 30, 2022 2022 - 2023 From Budget
Actual Actual Budget Jun 30, 2022 Variance

Employee Benefits 42,590,107 40,303,347 42,926,295 2,286,760 (336,188)

Actual expenses were higher than last year due Actual expenses were lower than budget due to
to an increase in overall staffing FTE. the lower average teacher salaries for the District.
Vacancies and late starts also drove down benefit
costs.

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 14

Supplies
Supplies categories represent approximately 9% of the operating budget expenditures. Overall Services
and Supplies are $0.38 million over budget. More details below for each supply category.

Services and Supplies

Increase
(Decrease)
Jun 30, 2023 Jun 30, 2022 2022 - 2023 From Budget
Actual Actual Budget Jun 30, 2022 Variance

Services 6,472,735 6,240,858 6,221,913 231,877 250,822

Supplies 9,678,360 9,378,081 8,935,178 300,279 743,182
16,151,095 15,618,939 15,157,091 532,156 994,004

Actual expenses for Services & Supplies were Actual expenses were $994K higher than budget.
$532K higher than last year.
Services: $251K – Primarily due to higher than
Services: $232K. Primarily due to: budgeted costs for snow removal.
$210K – Other – Higher snow removal
$154K – Contracts. Inclusion Langley Society for Supplies: $743K. Primarily due to Supplies line at
diversion funding and contract for orientation the central department level:
and mobility services for visually impaired
students. $200K – Learning Support Services increased
$123K – Increased IT licensing costs expenditure on supplies, due to lower than
$67K – Prof & Tech - Legal budgeted salaries.
$56K – Bank Charges – KEV related for $138K – Increased IT expenditure for equipment
increased transaction activity at schools. and services, due to lower than budgeted
$54K – Employee Assist Program - Lifeworks salaries.
$44K – Presenter Fees. Conferences / Pro-D $122K – Custodial supplies increase for
($438K) – Computer Equipment Lease expired. inflationary cost pressures.
$109K - Instructional Support
Supplies: $300K. Primarily due to: $72K – Consulting Costs
$371K – Supplies. $152K: Custodial, $120K in $60K – English Language Learning supplies
Instructional Services, $98K in IT. $45K – All schools combined
$182K – Photocopying at schools
$106K – Plumbing supplies
($326K) – Printed Books – one-time purchase
for Elementary Level Literacy books in 21/22

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 15

Transportation

Increase
(Decrease)
Jun 30, 2023 Jun 30, 2022 2022 - 2023 From Budget
Actual Actual Budget Jun 30, 2022 Variance

Student transportation 215,255 118,415 162,484 96,840 52,771

Actual transportation expenses were $97K higher Actual expenses were $53K higher than budget
than last year. The increase was primarily driven due to bussing for athletics and fieldtrips by
by bussing for athletics, fieldtrips by LSS/WGSS LSS/WGSS.
and Summer School busing costs and enhanced
supports for Aboriginal students.

Professional Development & Travel

Increase
(Decrease)
Jun 30, 2023 Jun 30, 2022 2022 - 2023 From Budget
Actual Actual Budget Jun 30, 2022 Variance

Professional development travel 1,452,758 924,383 1,491,201 528,375 (38,443)

Actual Pro-D costs were $528K higher than last Actual expenses were ($38K) lower than budget
year primarily due to increased travel with less primarily due to lower than anticipated expenses
COVID-19 restrictions. Increases were in the for staff development.
following categories:

$234K – Mileage and Expenses

$111K – Staff Development
$74K – Contractual Pro-D
$67K – Conferences
$37K – Travel Expenses

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 16

Rentals & Leases

Increase
(Decrease)
Jun 30, 2023 Jun 30, 2022 2022 - 2023 From Budget
Actual Actual Budget Jun 30, 2022 Variance

Rentals and leases 71,923 37,874 52,100 34,049 19,823

Increase in facility rentals from the Township of Actual expenses were $20K higher than
Langley for different events. budget due to higher facility rentals at Walnut
Grove Community Centre.

Dues and Fees

Increase
(Decrease)
Jun 30, 2023 Jun 30, 2022 2022 - 2023 From Budget
Actual Actual Budget Jun 30, 2022 Variance

Dues and fees 1,532,113 1,399,363 1,548,010 132,750 (15,897)

Dues and Fees expenses were $133K Dues & Fees were ($16K) below budget.
higher due mainly to commissions expenses for ($88K) – Lower ISP commissions.
the International Student Program. 2021-2022 ($7K) – Decrease in Licenses & Permit costs.
was lower due to impacts of COVID-19 and the $62K – Dues and Fees due to sports programs
reduced number of International students being restarting at schools as well as increase for
recruited by agents for the District. Alliance Medical Monitoring.
$17K – Increase in Foreign Exchange rates with
bank.

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 17

Insurance

Increase
(Decrease)
Jun 30, 2023 Jun 30, 2022 2022 - 2023 From Budget
Actual Actual Budget Jun 30, 2022 Variance

Insurance 567,777 431,084 577,854 136,693 (10,077)

Insurance premiums for the School Protection Plan Variance is primarily due to lower insurance
increased by $137K over 2021/22. premiums for white fleet.

Utilities

Increase
(Decrease)
Jun 30, 2023 Jun 30, 2022 2022 - 2023 From Budget
Actual Actual Budget Jun 30, 2022 Variance

Utilities 3,203,842 2,949,238 3,900,000 254,604 (696,158)

Utilities increased by a total of $255K compared to Utilities were ($696K) lower than budgeted
the 2021/22 school year. The main driver for the primarily due to the following:
increase was return to more normal operations ($411K) – Natural Gas - a reduction in utility cost
and increase in gym and facility rentals. effective Apr 1st combined with some of the
warmest weather we have seen in the past 10
years.
($264K) – Electricity - Lower use of heat pumps
due to warmer weather.

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 18

Statement of Operations – Special Purpose Fund

Special Purpose Funds are utilized to capture funding designated for specific purposes and balances can
be deferred to subsequent years for the intended use. Grant revenues are only recognized as expenses
are incurred. Any unused grants or funds remaining at the end of the year are treated as deferred
revenue.

Provincial Grants - Ministry of Education and Child Care

Annual Facility Grant $ 680,305 $ 665,831 $ 14,474 $ -
Learning Improvement Fund 766,619 742,677 23,942 8,595
Strong Start 287,419 287,810 (391) 771
Ready, Set, Learn 41,974 67,824 (25,850) 45,869
Official Languages in Education Protocol 259,159 187,700 71,459 38,584
CommunityLINK 2,182,623 2,106,842 75,781 -
Classroom Enhancement Fund - Overhead 939,969 906,082 33,887 -
Classroom Enhancement Fund - Staffing 33,493,840 27,195,257 6,298,583 3,876,891
Classroom Enhancement Fund - Remedies 5,805,121 1,625,876 4,179,245 -
First Nation Student Transportation 33,532 29,167 4,365 15,597
Mental Health in Schools 60,400 50,960 9,440 57,642
Safe Return to School Grant - 496,728 (496,728) -
Federal Safe Return to Class Fund 59,713 646,143 (586,430) -
Changing Results for Young Children 4,438 5,229 (791) 4,552
Seamless Day Kindergarten 127,836 32,866 94,970 98
Early Childhood Education Dual Credit 20,763 101 20,662 69,136
Student & Family Affordability 1,688,308 - 1,688,308 474,932
Just B4 25,000 - 25,000 -
Early Years to Kindergarten 3,786 - 3,786 15,214
Early Care & Learning 175,000 - 175,000 -
46,655,805 35,047,093 11,608,712 4,607,881

Provincial Grants - Other

Settlement Workers in Schools 744,923 556,924 187,999 187,892
744,923 556,924 187,999 187,892

Other
School Generated Funds 8,090,885 4,923,245 3,167,640 1,145,853
8,090,885 4,923,245 3,167,640 1,145,853

Total $ 55,491,613 $ 40,527,262 $14,964,351 $ 5,941,626

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 19

Statement of Operations - Capital Funds

Capital Fund Balances are as Follows:

Increase
(Decrease)
Jun 30, 2023 Jun 30, 2022 From
Actual Actual Jun 30, 2022

Bylaw Capital
Provincial Grants - Ministry of Education and Child Care $ 13,724,907 $ 52,945,328 $ (39,220,421)
Transfer project surplus to MECC Restricted (136,478) (91,361) (45,117)
Transfer prior year surplus in MECC Restricted back to Bylaw - - -
Reclassify revenue for AFG expense projects - (235,762) 235,762
Site Purchases 48,542 (42,117,960) 42,166,502
Work in progress (13,636,971) (10,500,245) (3,136,726)
Reclass purchase from Local Capital - - -
Net Change for the Year - - -
Opening Balance - - -
Closing Balance - - -

Bylaw Capital Balance: These are funds from the Ministry of Education and targeted for capital
purchases and projects. These funds were used for capital projects (Shortreed Seismic, Vanguard
Seismic, PEMS Seismic, DWP Sanitary Upgrade, AFG, Playground Equipment & School Enhancement
Projects).

Ministry of Education and Child Care - Restricted Capital

Investment income 22,278 5,162 17,116
Net proceeds from the disposal of sites and buildings - - -
Transfer project surplus from Bylaw Capital 136,478 91,361 45,117
Transfer prior year surplus in MEd Restricted back to Bylaw - - -
Other - - -
Work in progress (76,755) (420,377) 343,622
Net Change for the Year 82,001 (323,854) 405,855
Opening Balance 679,326 1,003,180 (323,854)
Closing Balance 761,327 679,326 82,001

Ministry Restricted Capital Balance: These are funds held on behalf of the Ministry of Education and
Child Care. Per the Ministry agreement, we will be contributing up to $1.0 million from restricted capital
towards the construction of Donna Gabriel Robins Elementary School. $420,377 was contributed in 2022

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 20

with an additional $76,755 contributed in 2023. Per the Ministry agreement for the LSS Expansion
project, the District will also contribute $1M to the project. In 2023, there was project surplus of
$136,478 coming from ACSS Building Remediation, PEMS Windows and Smith Site Purchase projects.

Increase
(Decrease)
Jun 30, 2023 Jun 30, 2022 From
Actual Actual Jun 30, 2022

Land Capital
School site acquisition fees 987,862 336,101 651,761
Investment income 19,283 18,316 967
Site acquisitions (49,187) (4,450,813) 4,401,626
Net Change for the Year 957,958 (4,096,396) 5,054,354
Opening Balance 405,646 4,502,042 (4,096,396)
Closing Balance 1,363,604 405,646 957,958

Land Capital Balance: Last year $4.45M was contributed to the Smith school site land purchase as
identified in the capital plan. In 2023 $988K was collected by the District from the Township and City as
part of the school site acquisition charge and these funds will be used for future.

Increase
(Decrease)
Jun 30, 2023 Jun 30, 2022 From
Actual Actual Jun 30, 2022

Other Provincial Capital

Provincial Grants - Other - (12,445) 12,445
Equipment purchases - (325,582) 325,582
Net Change for the Year - (338,027) 338,027
Opening Balance - 338,027 (338,027)
Closing Balance - - -

Other Provincial Capital Balance: Last year the district received $338,080 from the Ministry of Children
and Family Development under the Child Care Rapid Renovation Fund to purchase equipment for the 3
Neighbourhood Learning Centre spaces in the new Donna Gabriel Robins Elementary School ($325,582
was spent and $12,445 was returned as we did not spend the entire grant).

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 21

 Increase
(Decrease)
Jun 30, 2023 Jun 30, 2022 From
Actual Actual Jun 30, 2022

Local Capital
Investment income 35,190 13,521 21,669
Transfer from Operating Fund 7,307,635 5,666,140 1,641,495
Other - - -
Capital assets purchased (6,944,433) (5,635,045) (1,309,388)
Work in progress (167,850) (2,374,965) 2,207,115

Net change for the year 230,542 (2,330,349) 2,560,891

Opening balance 186,851 2,517,200 (2,330,349)
Closing balance 417,393 186,851 230,542

Local Capital Balance: Per the Ministry agreement, the District contributed $2.50 million from Local
Capital towards the construction of Donna Gabriel Robins Elementary School.

Major Capital Projects

The following is a summary of some of the major capital projects undertaken during the year.

Seismic Remediation
• Shortreed Seismic School: On December 10, 2020, the Ministry announced the approval of the
$7.87M seismic project for Shortreed Elementary. The project will retain the existing area and
will also include accessibility and life safety upgrades to ensure the school is safe and functional.
The project was completed.
• Vanguard Seismic School: On May 4, 2021, the Ministry announced the approval of the seismic
project for Vanguard Secondary. The project will provide new, modern classrooms, while
ensuring all students and staff are safe at school. The total value of the project is $3.33 million.
The project is nearing completion, with the demolition of the old building scheduled to happen
during the summer.
• PEMS Seismic School: On June 16, 2022, the Ministry announced a $38.7M seismic upgrade and
a 11-classroom expansion at Peter Ewart Middle school. The School District is contributing an
additional $1 million. Construction started in spring 2023 and the project is expected to be
complete in fall 2024.

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 22

Annual Facility Grant (AFG)
The Annual Facility Grant funding is provided by the Ministry of Education and Child Care for designated
school capital or maintenance upgrades. $3.49 million was provided by the Ministry of Education and
Child Care to fund the following projects in 2022/2023.

• Roof replacement major sections: 4 schools including gutters/drains

• Roofing Consultation: multiple sites
• Exterior painting: multiple sites
• Septic Upgrade Phase 2: 1 site
• Flooring: various classrooms and hallways, various gyms floors resurfaced
• Lighting upgrade: 8 sites
• Custodial Room Upgrade: 2 sites
• Washroom Renovations/Upgrades: 3 schools
• Mechanical System upgrades: multiple sites
• RTU Replacements: 2 sites
• Emergency Generator load testing: 4sites
• Fire Alarm Upgrades: 2 sites
• Elevator FOB Access: various schools
• Duct Cleaning: 6 schools
• Paving, Drainage, and Site upgrades: multiple sites
• Speed Drive upgrades: multiple sites
• Information Technology infrastructure upgrades: various schools
• Filtered Drinking water stations: 2 schools
• Asbestos Abatement: (removal) various schools
• Functional Improvements, Door & door Hardware replacement: various Schools
• Disabled Access upgrades (wheelchair ramps, hand rails, accessible washrooms): multiple sites
• Electric Vehicle chargers: multiple sites
• Septic Tank Upgrade: 1 site
• Disabled access: multiple sites
• Dust Collector Upgrade: 1 site
• Well Upgrade: 1 site

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 23

 Surplus (Operations)

The Board of Education has established an Operating Surplus Policy that allows the District to budget for
expenditure in excess of revenue in a given year. The Board of Education is responsible for ensuring the
District is protected financially from financial risk and unforeseen circumstances which could negatively
affect the education of students. Refer to Policy 17 available on the SD35 website for more information.

The Board reviews this policy annually and provides further details in the Audited Financial Statements
as to how restricted surplus funds are planned to be utilized in subsequent years.

Appropriated Appropriated
June 30, 2022
to Balance to Balance June 30,
(Restated - 22/23 Surplus
Amended Preliminary 2023
Note 21)
22/23 Budget 23/24 Budget

Total Capital Fund Surplus $120,838,955 $120,838,955

Restricted Operating Surplus
Constraints on Funds:
Internally restricted for commitments 2022/2023 1,233,788 (1,233,788) - 2,937,040 2,937,040
Internally restricted for Initiatives not completed 2022/2023 - - - 125,000 125,000
Internally restricted for Indigenous Education 2022/2023 167,804 (167,804) - 77,271 77,271
School Generated Funds 2,622,054 - - 73,360 2,695,414
- -
Anticipated Unusual Expenses: - -
Internally restricted for COVID-19 contingency 283,393 (283,393) - - -

Operations Spanning Multiple Years:

Internally restricted to balance 2023/2024 budget - - 2,565,672 - 2,565,672
Internally restricted to balance 2022/2023 budget 770,673 (770,673) - - -
Internally restricted to balance future budgets 2,489,351 - (507,868) - 1,981,482
Internally restricted for infrastructure replacement 107,804 - (107,804) - -
Internally restricted for student capacity needs 1,500,000 - (1,500,000) 1,747,329 1,747,329
School surpluses 421,322 (421,322) - 264,997 264,997
Internally restricted for classroom furniture 250,000 (130,000) - 150,000 270,000
Internally restricted for projector replacements 750,000 (600,000) (150,000) 350,000 350,000

Future Capital Cost Share:

Restricted for Future District Capital Contribution 630,919 (300,000) (300,000) - 30,919
Total restricted surplus 11,227,108 (3,906,980) 0 5,724,997 13,045,124
Unrestricted Operating Surplus 4,000,000 0 - 350,000 4,350,000
Total Operating Surplus 15,227,108 (3,906,980) 0 6,074,997 17,395,124
Accumulated Surplus $136,066,063 ($3,906,980) $0 $6,074,997 $138,234,079

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 24

Potential Future Financial impact on the District

There are several factors that could impact the District’s stable and healthy financial situation during the
2023/2024 school year and beyond.

Risk Assessment
In 2017/2018, a risk assessment was completed that identified 20 areas of risk. School District staff
continue to work on mitigating the risks identified within the report. The following are the top risk
factors that could have potential financial and non-financial impact on the School District:

1. Delivery of capital projects – That the District is unable to secure adequate funding to
successfully deliver highly complex capital projects.
2. Supporting students and families with mental health issues - The risk that, due to limited
funding, the District and supporting agencies may not have sufficient or appropriate tools
and resources to address the needs of students and families with mental health issues.

Classroom Enhancement Fund/Restored Teacher Collective Agreement Language

BCPSEA and BCTF reached an agreement on the restored language arising from the Supreme Court of
Canada ruling early 2017. The restoration has been categorized into four areas:

• Non-Enrolling Teacher Staffing ratios.

• Class Size Provisions.
• Class Composition Provisions.
• Process and Ancillary Language.

A related issue is timely and sustainable funding from the Ministry of Education and Child Care to create
required classroom spaces for subsequent years. Local capital funds are not sufficient to support this
level of capital outlay. Delays between identified needs and required funding add to uncertainty and
place stress on the School District’s capacity to fulfill requirements.

Grant Funding Model Review

During 2018, the Ministry of Education and Child Care initiated a review of the current grant-funding
model that has been in place since 2002. The review involved input and consultation from all 60 school
districts and over 350 education stakeholders. Final Working Group reports were completed in October
2019, and partners noted that some of the recommendations would be relatively straightforward to
implement while others would not. Upon completion of the review, the Ministry will implement
recommendations with a two-phase plan, beginning with 12 of the 22 recommendations (specifically, 2,
3, 12, 13, 14, 15, 16, 17, 19, 20, 21 and 22). Phase 1 of the model was implemented, and funding
adjustments were reflected in the 2020-21 Preliminary Budget. Phase 2 still needs to be implemented
and at the current time the impact on funding levels to the School District remains unknown.

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 25

International Education
The School District is heavily reliant on International Education programs to provide a significant source
of revenue funding to reduce the gap on grant funding shortfalls. The restored teacher collective
agreement has added space constraints for attracting more international students. While we do not
envision negative events that would interrupt these programs, International Education is an important
stabilizing financial influence on the School District.

Facilities – Capital Funds

There continues to be an increasing demand for enrolment space in the Willoughby area and the
Brookswood/Fernridge area will be developed over the coming years. The long-term facilities plan has
identified the need for a number of schools in the area. The capital approval process takes time and
resources to get new capital projects up and running. The Ministry continues to request that school
districts contribute more local funds towards capital projects. Furthermore, the requirement to comply
with collective agreement restored language places an increased burden and demand on class space to
accommodate students. This coupled with the cost and availability of portables for these additional
students adds more constraints on resources.

Technology Requirements
The demand for technology hardware, software, and system utilization continues at a rapid pace.
Providing the required services and ensuring that information is secure and protected necessitates
increased financial resources. Technology in support of education will allow us to implement the
paradigm shift and transformational education required to be at the forefront and on the cutting-edge in
the 21st-century. Technology in support of the framework for enhancing student learning and more real-
time reporting on student progress is a crucial undertaking. MyEdBC student administration system
requires enhancements in order to meet the ongoing needs for improved data and reporting.

Enrollment Growth in the District

Enrollment continues to grow at a rapid pace in the District. This adds increased demand for additional
schools and classroom space. District requires funding from the Ministry to build new schools. This also
requires the District to hire more teaching and educational assistant staff in the classroom, at a time
where there are staffing shortages.

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 26

Contacting Management

This financial report is designed to provide the School District’s stakeholders with a general but more
detailed overview of the School District’s finances and to demonstrate increased accountability for the
public funds received by the School District.

If you have questions about this financial report, please contact the Office of the Secretary–Treasurer.

School District No. 35 (Langley)

4875 - 222 Street
Langley, British Columbia
V3A 3Z7

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS 2022/2023 27