SD51 closes 2025–26 with $1.32M operating surplus as revenue tops budget

School District 51 reported a $1.32-million accumulated operating surplus for 2025–26.

Photo credit: School District 51 – Boundary

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GRAND FORKS — School District 51 ended the 2025–26 school year with $1.32 million in accumulated operating surplus after operating revenue finished about $1.5 million above the district’s final amended budget.

The district recorded $23.47 million in operating revenue and $22.62 million in operating expenses, leaving an $853,451 operating surplus before transfers, according to its year-end financial statements. After $462,101 was transferred to capital and local capital accounts, accumulated operating surplus increased by $391,350 during the year to $1,323,042.

That distinction matters because the $1.32-million year-end balance was built over multiple years. It does not represent the surplus generated during 2025–26 alone.

Trustees approved an amended 2025–26 budget in February that projected $21.97 million in operating revenue and $21.45 million in expenses. Actual revenue finished $1,504,734 above that plan, while expenses were $1,168,309 higher. The resulting $853,451 operating surplus before transfers was $336,425 above the amount anticipated in the amended budget.

The district’s Financial Statement Discussion and Analysis compares actual results with its original June 2025 budget rather than the February amended budget. For the final year-end comparison, The Boundary Sentinel used the amended figures approved by the board on Feb. 24.

A large part of the revenue increase was connected to flooding and insurance. Other revenue reached $1.12 million, about $951,000 above the amended budget. District management said approximately $940,000 came from insurance proceeds related to flooding in August 2025.

Those proceeds were accompanied by restoration expenses. Supplies cost $1.72 million, about $829,000 above the amended budget, with management attributing approximately $940,000 in supply expenses to flood restoration. Public-sector accounting rules required the insurance proceeds and restoration costs to be recorded separately rather than offsetting one against the other.

Provincial operating grants were another source of additional revenue. Ministry of Education and Child Care operating funding reached $22.11 million, about $517,000 above the amended budget.

Staffing costs were mixed. Teacher salaries were about $465,000 above the amended plan, educational assistant salaries were roughly $111,000 higher and support-staff salaries were about $155,000 higher. Substitute costs finished about $78,000 below budget, while employee benefits were approximately $186,000 lower than expected.

The district reported funded enrolment of 1,260.375 full-time-equivalent students, down from 1,283.750 the previous year. Management said enrolment nevertheless exceeded the level assumed when the original budget was prepared, contributing to higher provincial grant revenue.

Of the district’s $1,323,042 accumulated operating surplus at June 30, $555,535 was internally restricted for identified purposes. That included $213,300 for the Indigenous Education Council, $205,287 for facility upgrades, $76,075 in school carry-forwards and $60,873 for other committed district expenditures.

The remaining $767,507 was classified as unrestricted accumulated operating surplus. That amount represents the unrestricted portion of the district’s accumulated balance at year-end; only $391,350 was added to accumulated operating surplus during 2025–26.

The operating position improved from the previous year. After a prior-year accounting adjustment identified by the district, accumulated operating surplus at June 30, 2025 was restated at $931,692. Internally restricted amounts increased from $426,500 to $555,535 during 2025–26, while the unrestricted portion increased from $505,192 to $767,507.

Other district funds are accounted for separately. The capital fund ended the year with $2.89 million in accumulated surplus, including $2.60 million invested in tangible capital assets and $292,275 in local capital. Consolidated accumulated surplus across all district funds was $4.21 million.

Special-purpose funding also sits outside the operating surplus. The district recorded $3.65 million in special-purpose revenue and $3.60 million in expenses, with the remaining $52,689 used for tangible capital purchases. It carried $1.58 million in deferred revenue at year-end for grants and contributions whose spending conditions had not yet been met.

BDO Canada LLP issued an unmodified opinion on the district’s financial statements. Its auditor’s report included an emphasis-of-matter paragraph concerning the provincial government’s prescribed basis of accounting and differences from Canadian public-sector accounting standards, but BDO stated that its opinion was not modified as a result.

The financial statements were included in the Board of Education’s Sept. 22 meeting package, along with motions asking trustees to approve the audited statements and internally restricted accumulated operating surplus. Minutes for that meeting had not been posted in SD51’s online board archive as of Oct. 9.

The Sentinel asked the district Oct. 2 for the signed statements or a direct working link and confirmation of the board approval date. No response had been received as of Oct. 9.

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