1. Transfer Payment Agency Training Session
MCSS/MCYS Hamilton - Niagara Region
February 6th, 2013

2. Agenda Introduction Ellen Stevenson
Overview of Changes TPBP Sam Curtin
Budget Submission Heather Wenk
Year-to-Date Quarterly Reporting Daina Tustian
Infrastructure Surveys Training Laurie Britton
Year-End Reconciliation Angela Song
Ministry Policies Andrew Aarlaht
Allocated Central Administration Cheryl Pinto
Service Description Schedules Cheryl Pinto\Sam Curtin

3. Overview of Changes 2013/14 Transfer Payment Budget Package
Sam Curtin

4. Overview of Changes Document designed for Excel 2010
One document to create MCSS or MCYS budget
Enhanced recording of program related content
Standardized categories for operating expenditures
Reconciliation (TPAR) incorporated
Staffing details – changes + NOC
Reporting on non-ministry revenue by program
New colours!

5. Changes to the “Updates-Mise a jour” Worksheet 2013-14
Dropdown menu to select Ministry. This will enable the ministry specific detail codes.

6. Changes to the SubCon-DemCon Worksheet 2013-14
The word “Subsidy” is being replaced with “Funding”
New column added for program details

7. Changes to Staff-Personnel Worksheet 2013-14
Agencies will need to provide Total Hours and Head Count of Staff. FTE will be a calculated.
Program Staff will now be listed as “Line Personnel”. Agencies will be required to select the National Occupation Codes from the drop down menu in addition to the Union information.
New section added for program related description
Benefits are now divided into Statutory and Other categories
Program Administration is now being called as “Management and Operational Support (MOS)”
Only for Year-end, agencies will need to provide “Compensated Absences” information. This amount is that portion of the salary which is paid for vacations, leaves etc. It will remain part of the total salaries but will be also be reported separately

8. NOC- Community and Social Services Occupations
NOC Code NOC Group
Psychologists
Social Workers
4153 Family and Related Counsellors
4160 Policy and Program Researchers, Consultants and Officers
4212 Social, Community and Youth Service Workers
Early Childhood Educators, Assistants and Related Workers
Instructors of Persons with Disabilities
4412 Home Support Workers and Related Occupations
5125 Translators, terminologists and interpreters

9. Changes to Expend-Depenses Worksheet 2013-14
This section continues from Staffing tab
DOE Expenditure categories are now hard coded and aligned with the Chart of Accounts. This worksheet will be one of the input sheets for the Budget Summary sheet

10. Expenditures Worksheet Changes for 2013-14
Enhanced reporting on TPA personnel (staffing details)
During budget submission:
NOC codes by position
During Q4 reporting:
Actual headcount and # of hours worked for each position
Total amount of Compensated Absences
Reporting on program expenditures:
ODOE: standard categories mapping to 3 parent categories used in the OPS
Transportation & Communication
Services
Supplies & Equipment

11. Changes to Revenue-Recettes Worksheet 2013-14
Agencies will be reporting total funding from other sources
This section continues from Staffing tab

12. Budget Submissions
Heather Wenk

13. Transfer Payment Business Cycle

14. Submission Summary Sheets
Updates – Where the proper ministry for the submission is determined (MCSS/MCYS) from drop down box
Face Sheet – Detail codes entered on this sheet with the balance of the data prepopulated from the Staffing/Expenditure/Revenue worksheets
Budget Summary – Populated by the data entered in the Staffing/Expenditure/Revenue worksheets
Service Data Summary – Financial & Service Target – Service Specifics

15. Submission Detail Sheets
(1 for each Ministry Detail Code)
Staffing Details
Expenditure Worksheets
Revenue/Subsidy Worksheets
Service Descriptions

16. Budget Summary
Budget Summary Worksheet balances with the Ministry Revenue Reconciliation Worksheet
Ministry Revenue Reconciliation Worksheet details fiscal and annualized adjustments to the Ministry subsidy

17. Budget Submission Forms
Review to ensure figures are complete, accurate, and realistic
Budget Submission not to exceed annualized subsidy as shown on previous year’s Service Contract
Requests for additional funding and/or pressures to be submitted in writing to your Program Supervisor, not entered on the budget submission

18. Allocated Central Administration
The Ministry target for ACA is 10% of Agency’s Adjusted Gross Expenditures
Costs associated with governing and operating an organization
Any administration costs that can logically be assigned to a program are considered program administration costs

19. Service Data Summary Realistic & achievable targets
% breakdown by quarter to reflect anticipated expenditures and service delivery
Use numeric information only, Alpha characters are not recognized

20. Service/Budget Submission Face Page (SubCon-DemCon Tab)
Service Provider’s Name
The first line is reserved for the service provider’s official name as it appears in the “Letters Patent”. The second line can be used to identify the provider’s more common name.
Service Provider’s Contact Information and enter TPR #

21. Service/Budget Submission Face Page – Changes (SubCon-DemCon Tab)
Ensure that the title of the face sheet indicates Submission.
(To set the budget package to a submission use the custom menu located in the toolbar)
Ensure that the year is set up correctly to indicate either a fiscal or calendar year
(To set the budget package to the correct year use the custom menu located in the toolbar)
The word “Subsidy” is being replaced with “Funding”
Ministry specific Detail Codes will be entered on the face sheet and will be populated throughout.
New column added for program details

22. Service/Budget Submission - Budget Summary (SubCon-DemCon tab)
These cells are linked to the expenditure worksheet (as before).
Ensure ACA is appropriated exactly across detail codes.
Do not use decimals.
The following error message pops up if ACA across detail codes does not add up. 22

23. Service/Budget Submission – Ministry Funding Reconciliation (SubCon-DemCon Tab)
Previous Year’s Annualized Revenue
(O1 populates T1)
In-year Adjustments
Adjustments that take effect next year
(if applicable) 23

24. Staffing Details Worksheet
Complete the staffing details forms first
Prepare one page for ACA
Prepare one page for each Detail Code
Start your budget submission by entering your first Detail Code on the Face Sheet of the SubCon-DemCon worksheet

25. Staff/Personnel Worksheet
Include all staff despite the source of funding
Ensure all requested data is completed
Totals will automatically populate Expend-Depenses Worksheet & Budget Summary Page (Sub-Con Tab)

26. Staffing Details Worksheet - Changes (Staff-Personnel Tab)
Agencies will need to provide Total Hours and Head Count of Staff. FTE will be a calculated.
New section added for program related description
Program Staff will now be listed as “Line Personnel”. Agencies will be required to select the National Occupation Codes from the drop down menu in addition to the Union information.
Benefits are now divided into Statutory and Other categories
Program Administration is now being called as “Management and Operational Support (MOS)”
Only for Year-end, agencies will need to provide “Compensated Absences” information. This amount is that portion of the salary which is paid for vacations, leaves etc. It will remain part of the total salaries but will be also be reported separately

27. Staffing Details Worksheet (Staff-Personnel Tab)
Full Time Equivalents (FTE)
Total hours / 1 FTE hours per year .(One unit of staff time represents the equivalent of one person working full time for one year.)
Identify each unique position
Total Hours
(Total hours worked for the group of positions)
National Occupancy Classification
(drop down menu for NOC codes).
The number of Headcount
(A whole number that designates a staff regardless of if they are full or part-time).
Gross Total Salaries
(Does not include employee’s benefits).
Compensated Absences
(paid time-off; Only required at YE)
The number of hours for each unique position
(e.g., 36 hours per week x 52 weeks).
Total Benefits (Statutory and Other separately)
Union
(drop down menu for union name).

28. Expenditures Worksheet
Complete one page for ACA
Complete one page for each Detail Code
Include all expenditures despite the source of funding
Totals will automatically populate Budget Summary Worksheet

29. Expenditure Worksheet - Changes
This section continues from Staffing tab
Expenditure categories are now hard coded and aligned with the Chart of Accounts. This worksheet will be one of the input sheets for the Budget Summary sheet
This section is not to be completed until the YE Report 29

30. Service/Budget Submission Budget Summary Page (SubCon-DemCon Tab)
Previous Year’s Annualized Revenue
(O1 populates T1)
In-year Adjustments
Adjustments that take effect next year
(if applicable) 30

31. Revenue / Subsidy Worksheet
Complete one page for each Detail Code (use only if applicable)
List details on how revenue is expected to be generated
Totals will automatically populate Budget Summary Worksheet and Ministry Revenue Reconciliation Worksheet

32. Revenue Worksheet (Revenue-Recettes Tab)
Non-Ministry funding related to the program 32

33. Service Contract Components
Legal Text - If a full blown year: 3-year cycle with years 2 & 3 as amendments
Budget Schedules – Prepared through submission
Face Sheet
Budget Summary
Ministry Funding Reconciliation
Service Data Summary - Service & Financial Targets
Service Descriptions

34. Service Descriptions
Service Description Schedules are required each time a budget submission is requested (annually)
When a new funding line is added to the contract/amendment
Upon request of the Program Supervisor
Agency to submit one service description for each detail code

35. Contract Amendments
Contracts are amended to reflect increases/decreases in financial subsidy or service targets – fiscally and/or annually
Contract Amendments are processed electronically only until the end of the fiscal year – one amendment per ministry
When there is a change in either funding and/or stats the electronic copy is processed and revised

36. Contract Amendments
Electronic file is sent to the agency to be used for quarterly reporting – the file will be sent on the 15th of the month the quarterly reporting is due in
A complete Amendment package will be sent during March for sign off by the agency to be returned to the Regional Office by the end of March

37. Contract / Amendment Sign-Off
Full Blown Contracts will have the Legal Text signed by either:
2 signers + 2 witnesses
1 signer + 1 witness + seal
The signing of the Legal Text covers the signing of all pertinent schedules
Amendments will have a “one page” sign-off sheet that covers the entire package - same sign-off process as above

38. Year-to-Date Quarterly Reports
Daina Tustian

39. Transfer Payment Business Cycle39

40. Purpose of YTD Method of collecting ongoing data
Agency’s method of reporting their performance in relation to their contract
To identify issues Eg. Pressures or Surpluses
Identify potential requests for realignment of funding 40

41. YTD Time Frames
Year to Date (YTD) Quarterly Reports (QR) must be submitted to the ministry regional office within 30 days after the end of the 1st, 2nd and 3rd quarters, and 45 days after the end of the 4th quarter. 41

42. Correct Version
By the 15th of the month of the YTD due date, the Business Services Unit will send each agency their most recent electronic worksheet file for populating the quarterly Report.
It is important that you use the file sent in this for populating your quarterly report. The file sent in this includes all updates / amendments made to date as well as reflects your current funding and data status. 42

43. Reporting Check list
Ensure the Submission form has been changed to correct quarter
Ensure your Excel security levels are correct
See Tip Sheet
Ensure the Report Submission date is entered on the YTD face sheet
Enter cumulative actuals and year end estimates each quarter
no cells are left blank
Do not use text in numeric fields (e.g. NULL, N/A or TBD)
Do not add, delete or alter the size of rows and columns in the . Spread sheet 43

44. Significant Variance Explanation & Action Plan (VEAP)
Financial Variance
Service Target Variance
In the electronic file, variances are automatically calculated and highlighted if the variances are significant 44

45. Actual YTD Significant Variance
VEAP required
Financial or Revenue Target Data
Total Adjusted Gross Expenditure
(line G – Service Contract Budget Schedule)
> or = $100,000.
< $100,000.
Financial or Revenue Target Data variance of:
+/- $10,000
+/- 10%
Service Target Data variance of: 45

46. Projected or Actual YEAR END Significant Variance
VEAP required
Financial or Revenue Target Data
Total Adjusted Gross Expenditure
(line G – Service Contract Budget Schedule)
> or = $10,000.
< $10,000.
Financial or Revenue Target Data variance of:
+/- $1,000
+/- 10%
Service Target Data variance of:
+/- 5% 46

47. VEAP
The Variance Explanation & Action Plan (VEAP) is to be completed if any significant variances have been identified for each service (Ministry Detail Code)
Organization Contact Person
Phone Number
TPBE# (relating to detail code showing a variance)
Detail Code#
The Service Name box is automatically populated once the Detail Code is entered
Variance - Details regarding Variance
Impact on Service & Staffing
Reason for Variance
The “Reason for Variance” section is uploaded into the Ministry’s data base. This section must provide an explanation in 100 characters or less “per Line” for each detail code that shows a significant variance
Action Plan 47

48. Submitting YTD Report HNR.YTDreporting@Ontario.ca
For quarters 1, 2, and 3 please use the following assurance statement in the body of your .
“I certify that the attached Year-To-Date report and any supporting documents have been reviewed and approved by the appropriate signing authorities for this organization as of the date of this .”
Signatures are required for 4th quarter reports only. The signed report will be accepted by fax, PDF, or hard copy, in addition to the electronic excel version
Quarterly reports are to be sent to the Hamilton/Niagara Region Year-To-Date Reporting address below: . 48

49. 2013/14 Infrastructure Surveys Training Agency ABC Infrastructure Survey
Laurie Britton 49

50. Agency Name and Main Office Address50 50

51. Site Address and Program Information51 51

52. Use of Site 52 52

53. Asset Information – 4a 53 53

54. Asset Information – 4b 54 54

55. Property Value 55 55

56. Section 6 – Acquisition Contributions56 56

57. Minor Capital Funding Requests57 57

58. Information Validation58 58

59. Urgent/Critical Issues
Urgent/Critical issues are defined as some event that prevents programing from continuing at the site location due to health and safety issues such as fire code infractions, Technical Safety and Standards Association orders, etc.
Examples might include electrical issues, furnace failure, etc. The location can no longer be inhabited until the issue is fixed.
The first step is to look at your options. If you don’t fund the project what will happen? Do you have a mitigation strategy in place? Do you have a capital reserve fund? Is there a Foundation associated with your agency that may be able to provide funding? 59 59

60. Urgent/Critical Issues (Cont’d)
If there is absolutely no other funding option, contact your Program Supervisor to discuss the urgency of the issue. Be prepared to provide details of the project and what steps you have taken to secure funding.
You must then submit an updated Infrastructure Survey with accurate cost estimates including a detailed breakdown of expenses.
The Regional Office will then contact CASB and will be required to submit a briefing note.

61. Urgent/Critical Issues(Cont’d)
The first questions that CASB will ask: Are the clients being displaced? Is the facility being shut down? If the answer to either of these questions is no, the matter is not urgent.
This type of request must be submitted as soon as possible after the project has been identified. The sooner we can identify this to CASB, the greater the chance that funds may be made available.
The Ministry cannot fund projects after the end of the fiscal year. 61 61

62. Building Condition Assessments
This section is relevant to MCYS Transfer Payment Agencies only.
MCYS plans to systematically review its asset portfolio through conducting individual BCAs for all assets, including those managed by Transfer Payment agencies over the next 5 years. Approximately 60% of MCYS residential group homes were reviewed in 2011/12.
Building Condition Assessments are intended to provide objective, base-line information to be used to form strategies for short and long term maintenance plans.

63. Building Condition Assessments(Cont’d)
While there is no new funding associated with BCA findings, the report is intended to help agencies become better property managers and maintain/upgrade their facilities in order to better serve Ministry clients.  
It is important that those agencies who have received a BCA, review the findings in the report and reflect the findings on their Infrastructure Surveys as appropriate.

64. Year-End Reconciliation
Angela Song

65. Transfer Payment Business Cycle

66. Year-End Reconciliation Overview
Year-end Reconciliation is a key part of the Transfer Payment Business Cycle
Required by Ministry policy and terms of the approved service contract
Reconcile Ministry’s approved subsidy with service provider’s year-end actual information
Independent verification of reported information is required
Identify net subsidy due to or owed by the Ministry

67. Year-End Reconciliation Reports
Transfer Payment Annual Reconciliation (TPAR)
ODSP Employment Supports Reconciliation
Ontario Works Reconciliation Report (OWRR)
Child Welfare Year-End Reconciliation Report
Annual Reconciliation Report (ARR) for Children’s Treatment Centres
Annual Information Return (AIR) for Dedicated Supportive Housing
Pay Equity Reconciliation Statement
Small Waterworks Reconciliation

68. Year-End Reporting Requirements
Signed original submission
Certified by appropriate officer (i.e. Chief Financial Officer or Treasurer)
Certified by Board of Directors
Electronic submission 
Audited Financial Statements
Supplementary Information by Program (Detail Code )
Review Engagement Letter
Post Audit Management Letter 68

69. Reporting Timelines TPAR due on : July 31st Exceptions:
Calendar Year Programs : May 31st
Children’s Treatment Centres (ARR) : June 30th
Dedicated Supporting Housing (AIR) : August 31st

70. TPAR Section I – Certification and Verification
Sign Here
Sign Here
Reminder: Follow up with fully signed copy if Board meets after July 31st 70

71. TPAR Section II – Subsidy Reconciliation
Ensure ACA Expenditures are properly completed and Total ACA on line 263 balances to ZERO

72. TPAR Section III – Financial Flexibility
Ensure Financial Flexibility criteria all MET when answering YES or NO
Note: certain Detail Codes identified as exceptions to Financial Flexibility.
Yes or No

73. TPAR Section IV – Audited Financial Statement Reconciliation
Gross Revenues from ALL sources
Lines 415 and 420 should equal

74. TPAR Section IV (cont’d.)
Gross Expenditures from ALL sources
Variance must be reconciled. It cannot be left unexplained.

75. Reporting Partner Facility Renewal Funding (PFR) – (Minor Capital)
Funding is approved on regular budgets under DETAIL CODES  - A710 MCYS and 8915 MCSS
Project actual costs are reported on the monthly report back template.
Final reconciliation is performed on TPAR
Include all invoices which detail actual dollars spent on the project as approved
The invoices must match the type of project as approved. Invoices to show the details of each type of work conducted and the cost per unit, including a breakdown of labour and material costs
Any variance from the project as approved,  must have previous regional office approval in order to be acceptable

76. Partner Facility Renewal (PFR) Approval
Revisions are highlighted in Yellow 76

77. Partner Facility Renewal (PFR) Report Back
Work Order is not acceptable as PFR supporting document. Actual Invoice copy is required.
All projects must be completed by March 31, 2013 per PFR funding approval 77

78. New for TPAR 2013/14
TPAR tabs incorporated in Transfer Payment Budget Package file
Section II – New Expenditures Categories
Section II – Expenditures and Off-Setting Revenue data pulled from Expenditure and Revenue Worksheet tabs
Section IV – Total Equity, Total Assets and Total Debt info required
Stay tuned for future communications 78

79. Tips and Resources
Keep a checklist of Year-End Reconciliation submission, including required documents, reporting timelines, follow-up items, etc.
Access on-line resource center – Transfer Payment Budget Package external website:
Enter username (in lowercase): mcss-mcystpbp
Contact Ministry staff if any questions

80. Ministry Policies
Andrew Aarlaht

81. Ministry Policies Admissible/Inadmissible Expenditures
Executive and Allotment Controls
Financial Flexibility
Recoverable Subsidy
Retainable and Non-Retainable Revenues
Transfer Payment Operating Funds - Basis of Accounting
Year-End Reconciliation

82. Admissible/Inadmissible Expenditures
Recording and accounting of expenditures following the ministry's standard, the modified accrual basis of accounting.
Admissible expenditures in the calculation of the operating subsidy must be:
authorized in accordance with the policies of the Service Provider/Delivery Agent,
approved by the ministry, and
supported by acceptable documentary evidence

83. Financial Flexibility
Transfer Payment Service Providers/Delivery Agents are allowed financial flexibility IN YEAR to move dollars on a ONE TIME basis without approval from the ministry provided that ALL financial flexibility criteria and exceptions are met.
The term IN YEAR refers to the funding period identified in the Service Contract or CFSA Approval.
MANDATORY REQUIREMENTS
The following four criteria must be MET when applying financial flexibility:
Program/Policy Directions and Priorities
Funding Policies and Guidelines
Conditions
Realignment – see EXECUTIVE AND ALLOTMENT CONTROLS

84. Executive and Allotment Transfer Control
List by Chart of Account codes which control the movement of funding from program to program.
Executive Control - high level control, set by Treasury Board
Allotment Control - are set by each Ministry
Referenced in the Financial Flexibility Policy

85. Recoverable Subsidy
Following the end of the budget year, each Service Provider/Delivery Agent provides a Year-End Reconciliation Report that identifies any recoverable subsidy.
The major components of subsidy recovery are as follows:
Identification of Recoverable Subsidy
Assessment and Confirmation of Identified Recoverable Subsidy
Recovery of Identified Recoverable Subsidy
Overpayment

86. Retainable and Non – Retainable Revenue
Generally, the treatment of revenue is determined by its source or the purpose for which it was received.
RETAINABLE REVENUE: If produced from non-ministry funded resources, the excess revenue may be held by the Service Provider for other purposes.  
NON-RETAINABLE REVENUE: If produced from ministry funded resources, the excess revenue is subtracted from the gross expenditures, which reduces the expenditures eligible for ministry subsidy.

87. Transfer Payment Operating Funds – Basis of Accounting
Defines record keeping requirements for service providers, outlines ministry reporting requirements, and differentiates between ministry reporting requirements and Audited Financial Statements requirements.
Modified accrual accounting forms the basis of funding and is also guided by other ministry policies and program guidelines.
Report spending using the modified accrual basis of accounting in ministry provided templates.
Ministry reporting is independent from Audited Financial Statement reporting requirements.

88. Year – End Reconciliation
Year- End Reconciliation Reports
Certification
Independent Verification
Audited Financial Statements
Supplementary Information
Post Audit Management Letter
Reporting Timelines

89. Things to Remember
All policies can be found at the same web site as the budget package.
Review the policies yearly with Finance Staff, Board of Directors and Auditors.
These financial policies work together as a connected set.
Contact the Ministry for clarification.

90. Allocated Central Administration
Cheryl Pinto

91. Allocated Central Administration (ACA)
Includes governing and operating costs
Does not include program administration costs
ACA based on entire contract
ACA allocation should reflect level of activity
Ministry target for ACA is 10% of adjusted gross expenditures

92. Service Description Schedules
Cheryl Pinto\Sam Curtin

93. Service Description Schedules (SDS)
SDS required with:
Full blown contract
New funding line added
When service has changed
One SDS per detail code
SDS includes:
Ministry completed section includes service objective, service description, service delivery and accountability/ performance measures
Agency completed section includes agency’s plan for achieving identified objectives

94. Service Description Schedules (SDS) (contd.)
Types of SDS:
Agency governance (one per agency)
French Language Services (one per contract; should reference all detail codes funded)
Pay equity (one per contract; should reference applicable detail codes)
Program SDS (one per detail code)
CAS/VAW collaboration agreement
Cross-sectoral referral agreement
Making services work for people (DS program)

95. Q & A
Round Table Stations

96. Contacts Budget Submission - Heather Wenk - heather.wenk@ontario.ca
Infrastructure Surveys Laurie Britton -
Year-to-Date Quarterly Reporting - Daina Tustian -
Year-End Reconciliation Angela Song -
Ministry Policies Andrew Aarlaht -
Allocated Central Administration Cheryl Pinto -
Service Description Schedules Sam Curtin -

97. THANK YOU !