Annual Report

Transcription

1 Annual Report Board of Directors Tracy McLennan President Wellington Catholic District School Board Francoise Fournier Vice President Conseil scolaire Viamonde Janice Wright Treasurer Upper Grand District School Board Daniel Del Bianco Secretary Dufferin-Peel Catholic District School Board Mario Nantel Director Conseil scolaire de district catholique Centre-Sud

2 Annual Report Table of Contents President s Report. 3 Report from Administration & Operations Key Performance Indicators...6 Appendix A 8 Auditor s Report Financial Statement Notes to Financial Statements Safe, reliable student transportation Through planning, cooperation and dedication STWDSTS Annual Report Modified December 14,

3 President s Report Service de transport de Wellington-Dufferin Student Transportation Services (STWDSTS) was incorporated as a not for profit single legal entity on February 3 rd The Consortium provides transportation services for students residing in the geographic boundaries of Wellington and Dufferin Counties for Conseil scolaire de district catholique Centre-Sud (CSDCCS), Conseil scolaire Viamonde (CSV), Dufferin-Peel Catholic District School Board (DPCDSB), Upper Grand District School Board (UGDSB) and Wellington Catholic District School Board (WCDSB). The Transportation Management Committee (TMC) governs the Consortium through its policies, procedures and agreements. The Transportation Management Committee is very pleased with the continuous improvements made within STWDSTS. The addition of a technician and implementation of a new communications system has proved to be valuable in achieving greater service to the students, parents, community and Boards. Customer service, communication and safety continue to be goals for STWDSTS throughout project building and strategic planning. Within achieving these goals, STWDSTS has made it possible for Boards to review eligibility policies for the upcoming school year for Upper Grand District School Board, Wellington Catholic District School Board and in Dufferin County for the Dufferin-Peel Catholic District School Board. Service de transport de Wellington-Dufferin Student Transportation Services Transportation Management Team and Staff are dedicated to providing a safe, reliable and cost effective student transportation system in partnership with the Ministry of Education, its member School Boards and the School Bus Operators. Tracy McLennan President Transportation Management Committee STWDSTS Annual Report Modified December 14,

4 Administration & Operations Projects STWDSTS worked on a number of projects over the year to improve communications, customer service, routing and efficiencies. Exception Areas STWDSTS staff under took a comprehensive analysis of existing exception areas created in the BusPlanner database to determine if they are still active and relevant moving forward into the future. Through this analysis, staff were able to modify and/or delete exception areas that were either inactive, or no longer applicable to current and future databases. Access Point Verification Student eligibility is based on calculated distance from a student s address to the school property line. STWDSTS staff analyzed all school access locations to determine if they matched real world locations. Identified school access points that were deemed inaccurate were adjusted to reflect more accurate locations. This review process led to eligibility changes for 81 elementary students, and 89 secondary students. Elementary changes from bused to walker totalled 79, from walker to bused totalled 2; Secondary changes from bused to walker totalled 89. IT Asset Tagging STWDSTS has completed the asset tagging of our IT hardware. This includes desktop computers, monitors, servers, laptops, and other various peripherals. Transportation Technician School Assignments In April 2015, STWDSTS reviewed Transportation Technician school assignment allocation based on an additional (4 th ) Technician. As a result, technician assigned schools were modified and balanced to share the busing workload over 4 technicians. Telephone Communications System In June 2015, STWDSTS implemented a new telephone system to improve customer service. The new system allows for additional phone lines, streamlining of incoming calls, monitoring the number of calls and improving key performance indicators on customer service. School Start-up Call Centre: This is the fourth year in a row STWDSTS has successfully operated a temporary call centre. The call centre provided phone coverage between the hours of 8 am and 5 pm. Staffing was provided by three people. The call centre answered 4177 phone calls between August 18 th and September 19 th Between the same dates the call centre logged 1548 contacts which were dealt with by the transportation technicians STWDSTS Annual Report Modified December 14,

5 2. s: This is the second year that s were tracked. The STWDSTS staff received and responded to s between August 18 th and September 19 th The s were received from parents, school officials, bus companies, school board administration and internally in the STWDSTS office. 3. Overloads: STWDSTS experienced approximately 8 issues with bus overloading. These issues were expected to all be resolved by October 1 st. Typically High School Routes are planned with an overload due to the number of students receiving alternate transportation. It is very difficult to forecast as STWDSTS does not receive listings of students choosing to not ride the school bus. 4. Website: STWDSTS is able to track website visitors on both the corporate website and BusPlanner web utilizing Google Analytics. Start-up (August 18-Sept 19 th 2014) website statistics on both the STWDSTS webpage and BusPlanner web was follows: -The STWDSTS Website received visitors and unique visitors -The BusPlanner Website received visitors and unique visitors 5. Bus Planner Data Changes: There were changes made in the transportation planning software (Bus Planner), between August 18 th and September 19 th STWDSTS Annual Report Modified December 14,

6 Key Performance Indicators STWDSTS Annual Report Modified December 14,

7 STWDSTS Annual Report Modified December 14,

8 Appendix A Independent Auditors Report Statement of Financial Position 1 Statement of Operations 2 Statement of Cash Flows...3 Notes to Financial Statements STWDSTS Annual Report Modified December 14,

9 Financial Statements of SERVICE DE TRANSPORT DE WELLINGTON DUFFERIN STUDENT TRANSPORTATION SERVICES Year ended August 31, 2015

10 KPMG LLP Telephone King Street South Fax nd Floor Internet Waterloo ON N2J 5A3 INDEPENDENT AUDITORS' REPORT To the Transportation Management Committee of Service de transport de Wellington-Dufferin Student Transportation Services We have audited the accompanying financial statements of Service de transport de Wellington- Dufferin Student Transportation Services which comprise the statement of financial position as at August 31, 2015, the statements of operations and accumulated deficit and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, 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 on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform an audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity's preparation and fair presentation of the financial statements in order to 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 of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. KPMG LLP, is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. KPMG Canada provides services to KPMG LLP.

11 Page 2 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Service de transport de Wellington-Dufferin Student Transportation Services as at August 31, 2015, and its results of operations and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Chartered Professional Accountants, Licensed Public Accountants December 18, 2015 Waterloo, Canada

12 SERVICE DE TRANSPORT DE WELLINGTON DUFFERIN STUDENT TRANSPORTATION SERVICES Statement of Financial Position August 31, 2015, with comparative information for 2014 Financial Assets Cash $ 1,407,828 $ 307,988 Accounts receivable 179, ,333 Due from related parties (note 2) - 173,840 1,586, ,161 Financial Liabilities Accounts payable and accrued liabilities 40,992 67,646 Deferred revenue - 655,716 Due to related parties (note 3) 1,545, Retirement and other employee future benefit liabilities (note 4) 99,271 88,739 1,686, ,900 Net debt (99,271) (88,739) Contractual obligations (note 7) Accumulated deficit $ (99,271) $ (88,739) See accompanying notes to financial statements. 1

13 SERVICE DE TRANSPORT DE WELLINGTON DUFFERIN STUDENT TRANSPORTATION SERVICES Statement of Operations and Accumulated Deficit Year ended August 31, 2015, with comparative information for 2014 Revenues Budget Actual Actual School board revenue (note 6) $ 23,198,599 $ 21,830,563 $ 22,265,041 Cost recoveries from other boards - 23,736 47,559 23,198,599 21,854,299 22,312,600 Expenses Transportation services 22,233,532 20,846,814 21,278,604 Administrative expenses: Salaries and benefits 645, , ,671 Office expenses 143, , ,178 Rent 24,000 26,822 27,196 Professional development 11,000 10,198 9,873 Legal and professional fees 105,500 95, ,800 Other 34,600 55,588 67, ,067 1,018,017 1,003,938 Total expenses 23,198,599 21,864,831 22,282,542 Annual surplus (deficit) - (10,532) 30,058 Accumulated deficit, beginning of year (88,739) (88,739) (118,797) Accumulated deficit, end of year $ (88,739) $ (99,271) $ (88,739) See accompanying notes to financial statements. 2

14 SERVICE DE TRANSPORT DE WELLINGTON DUFFERIN STUDENT TRANSPORTATION SERVICES Statement of Cash Flows Year ended August 31, 2015, with comparative information for 2014 Operating activities Annual surplus (deficit) $ (10,532) $ 30,058 Items not involving cash: Retirement and other employee future benefit liabilities 10,532 (35,668) Changes in non-cash assets and liabilities: Accounts receivable 63,255 (235,297) Due from related parties 173,840 (89,148) Accounts payable and accrued liabilities (26,654) (18,472) Due to related parties 1,545, Deferred revenue (655,716) 655,716 Net change in cash 1,099, ,988 Cash, beginning of year 307,988 - Cash, end of year $ 1,407,828 $ 307,988 See accompanying notes to financial statements. 3

15 SERVICE DE TRANSPORT DE WELLINGTON DUFFERIN STUDENT TRANSPORTATION SERVICES Notes to Financial Statements Year ended August 31, 2015 Service de transport de Wellington-Dufferin Student Transportation Services ( STWDSTS ) was incorporated on February 9, 2008 by Conseil scolaire de district catholique Centre-Sud, Conseil scolaire Viamonde, Dufferin-Peel Catholic District School Board, Upper Grand District School Board, and Wellington Catholic District School Board. This partnership was mandated provincially by the Ministry of Education in order for school boards to realize delivery efficiencies and cost effectiveness with respect to student transportation. STWDSTS commenced operating activities on September 1, Significant accounting policies: The financial statements have been prepared by management in accordance with the Chartered Professional Accountants of Canada, Canadian public sector accounting standards. The financial statements are the representation of management. (a) Reporting entity: The financial statements reflect the assets, liabilities, revenues, expenses and accumulated deficit of the reporting entity. The reporting entity is comprised of all organizations accountable for the administration of their financial affairs and resources to STWDSTS and which are controlled by STWDSTS. There are no organizations which are accountable to STWDSTS. (b) Revenue and expense recognition: Revenues and expenses are reported using the accrual basis of accounting. The accrual basis of accounting recognizes revenues as they are earned and measurable; expenses are the cost of goods and services acquired in the period whether or not payment has been made or invoices received. (c) Retirement and other employee future benefit liabilities: The STWDSTS provides future benefits to its employee group. These benefits include pension, life insurance and health care benefits, workers compensation, sick leave and longterm disability benefits. The STWDSTS has adopted the following policies with respect to accounting for these employee benefits: (i) The costs of self insured retirement and other employee future benefit plans are actuarially determined using management s best estimate of salary escalation, accumulated sick days at retirement, insurance and health care costs trends, disability recovery rates, long-term inflation rates and discount rates. For self insured retirement and other employee future benefits that vest or accumulate over the periods of service provided by employees, such as life insurance and health care benefits for retirees, the cost is actuarially determined using the projected benefits method prorated on service. Under this method, the benefit costs are recognized over the expected average service life of the employee group. 4

16 SERVICE DE TRANSPORT DE WELLINGTON DUFFERIN STUDENT TRANSPORTATION SERVICES Notes to Financial Statements, continued Year ended August 31, Significant accounting policies (continued): (c) Retirement and other employee future benefit liabilities (continued): (i) Any actuarial gains and losses related to the past service of employees are amortized over the expected average remaining service life ( EARSL ) of the employee group. For the year ended August 31, 2015, the EARSL was 19.1 years ( years). For those self insured benefit obligations that arise from specific events that occur from time to time, such as obligations for workers compensation, long-term disability and life insurance and health care benefits for those on disability leave, the cost is recognized immediately in the period the events occur. Any actuarial gains and losses that are related to these benefits are recognized immediately in the period they arise; (ii) The costs of multi-employer defined pension plan benefits, such as the Ontario Municipal Employees Retirement System pensions ( OMERS ) are the employer s contributions due to the plan in the period, and; (iii) The costs of insured benefits are the employer s portion of insurance premiums owed for coverage of employees during the period. (d) Budget figures: Budget figures have been provided for comparison purposes and have been derived from the preliminary budget approved by the Transportation Management Committee June 13, 2014 and is reflected in the Statement of Operations and Accumulated Deficit. (e) Use of estimates: The preparation of financial statements 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 year. Significant estimates include assumptions used in performing actuarial valuations related to retirement and other employee future benefit liabilities. Actual results could differ from these estimates. These estimates are reviewed periodically and, as adjustments become necessary, they are reported in the period in which they become known. 5

17 SERVICE DE TRANSPORT DE WELLINGTON DUFFERIN STUDENT TRANSPORTATION SERVICES Notes to Financial Statements, continued Year ended August 31, Due from related parties: Due from related parties consists of the following: Upper Grand District School Board $ - $ 145,388 Wellington Catholic District School Board - 20,692 Dufferin-Peel Catholic District School Board - 7,482 Conseil scolaire de district catholique Centre-Sud Conseil scolaire Viamonde - - $ - $ 173, Due to related parties: Due to related parties consists of the following: Upper Grand District School Board $ 1,066,022 $ - Wellington Catholic District School Board 155,781 - Dufferin-Peel Catholic District School Board 226,787 - Conseil scolaire de district catholique Centre-Sud 20,905 - Conseil scolaire Viamonde 76, Orangeville Christian School 33 $ 1,545,914 $ 799 Amounts due to related parties are non-interest bearing and will be repaid within the following period. 4. Retirement and other employee future benefit liabilities: Other Total Total employee employee employee Retirement future future future benefits benefits benefits benefits Accrued employee future benefit obligations $ 47,730 $ 47,942 $ 95,672 $ 83,764 Net unamortized actuarial gain/(loss) 7,211 (3,612) 3,599 4,975 Accrued employee future benefit liabilities $ 54,941 $ 44,330 $ 99,271 $ 88,739 6

18 SERVICE DE TRANSPORT DE WELLINGTON DUFFERIN STUDENT TRANSPORTATION SERVICES Notes to Financial Statements, continued Year ended August 31, Retirement and other employee future benefit liabilities (continued): Other Total Total employee employee employee Retirement future future future benefits benefits benefits benefits Current year benefit cost $ 8,217 $ 75 $ 8,292 $ 13,522 Adjustment to initial accounting estimate (53,903) Interest on accrued benefit obligation 1,376 1,130 2,506 4,536 Employee future benefits expense $ 9,593 $ 1,205 $ 10,798 $ (35,845) (a) Pension plans: Ontario Municipal Employees Retirement System: Employees of STWDSTS are eligible to be members of the OMERS, a multi-employer pension plan. The plan provides defined pension benefits to employees based on their length of service and rates of pay. STWDSTS contributions equal the employees contributions to the plan. During the year ended August 31, 2015, STWDSTS contributed $43,071 ( $52,290) to the plan. As this is a multi-employer pension plan, these contributions are STWDSTS pension benefit expenses. No pension liability for this type of plan is included in STWDSTS financial statements. (b) Retirement benefits: Post-employment insurance coverage: STWDSTS offers its permanent employees life insurance, accidental death and dismemberment, dental and health care benefits upon retirement until age 65. STWDSTS provides these benefits through an unfunded defined benefit plan. The benefit costs and liabilities related to this plan are included in STWDSTS financial statements. If an employee retires before age 65, STWDSTS allows the retiree to continue their benefits in the plan at STWDSTS group rate, at 100% cost to the retiree until age 65. 7

19 SERVICE DE TRANSPORT DE WELLINGTON DUFFERIN STUDENT TRANSPORTATION SERVICES Notes to Financial Statements, continued Year ended August 31, Retirement and other employee future benefits (continued): (c) Other employee future benefits (continued): (i) Workplace safety and insurance board obligation: STWDSTS is a Schedule 1 employer under the Workplace Safety and Insurance Act and, as such, pays a premium to the WSIB to insure all claims to its injured workers under the Act. The benefit costs, assets, and liabilities related to this plan are included in STWDSTS financial statements. STWDSTS premiums for the year ended August 31, 2015 were $4,200 ( $4,179). (ii) Long-term disability benefits: STWDSTS provides long-term disability benefits of partial payment of life insurance premiums and health care benefits during the period an employee is unable to work or until their normal retirement date. STWDSTS provides these benefits through an unfunded defined benefit plan. The benefit costs and liabilities related to this plan are included in STWDSTS financial statements. (iii) Sick leave benefits: Under the sick leave benefit plans, employees are allocated a certain number of days each year for use as paid absences due to illness or injury. Employees are permitted to accumulate their unused allocation each year, up to the allowable maximum in their employment agreements. Accumulated credits may be used in future years to the extent that the duration of the employee s illness or injury exceeds the current year s allocation of credits. Sick leave credits are paid out at the salary in effect at the time of usage. The use of accumulated sick days for sick leave compensation ceases on termination of employment. STWDSTS provides these benefits through an unfunded defined benefit plan. The benefit costs and liabilities related to this plan are included in STWDSTS financial statements. 8

20 SERVICE DE TRANSPORT DE WELLINGTON DUFFERIN STUDENT TRANSPORTATION SERVICES Notes to Financial Statements, continued Year ended August 31, Retirement and other employee future benefits (continued): (d) Assumptions (continued): The accrued benefit obligations for employee future benefit plans as at August 31, 2015 are based on the most recent actuarial valuation completed for accounting purposes as at August 31, These actuarial valuations are based on assumptions about future events. The economic assumptions used in these valuations are the STWDSTS best estimates of expected rates of: Inflation 1.5% 2.0% Wage and salary escalation 2.0% 2.0% Health and dental insurance premium escalation 4.5% - 8.5% 4.5% - 8.5% Discount on accrued benefit obligations 2.45% 2.85% 5. Economic dependence: The majority of STWDSTS' revenues are derived from supplying transportation services to Upper Grand District School Board, Wellington Catholic District School Board, Dufferin-Peel Catholic District School Board, Conseil scolaire Viamonde and Conseil scolaire de district catholique Centre-Sud. STWDSTS is economically dependent on these boards for its transportation revenues. 6. Related party transactions: School board revenue consists of the following: Upper Grand District School Board $ 16,268,837 $ 16,569,803 Wellington Catholic District School Board 3,405,192 3,392,200 Dufferin-Peel Catholic District School Board 1,516,072 1,630,871 Conseil scolaire de district catholique Centre-Sud 179, ,843 Conseil scolaire Viamonde 461, ,324 $ 21,830,563 $ 22,265,041 9

21 SERVICE DE TRANSPORT DE WELLINGTON DUFFERIN STUDENT TRANSPORTATION SERVICES Notes to Financial Statements, continued Year ended August 31, Contractual obligations: STWDSTS is committed to an operating lease for their premises with terms to January 14, The minimum annual payments under this agreement are as follows: 2016 $ 26, , , , $ 87, Ontario School Board Insurance Exchange: STWDSTS is a member of the Ontario School Board Insurance Exchange ( OSBIE ), a reciprocal insurance company licensed under the Insurance Act. OSBIE insures general public liability, property damage and certain other risks. 10