1. Specified Audit Procedures for Capital Wrap-Up Template Financial Analysis & Accountability Branch September 2010

2. 2007-08 Grants for Student Needs 2 Purpose & Background  Capital Wrap-Up: Province is assuming $8.6B of Boards’ debts as of August 31, 2010  Each Board’s supported debt as determined through the Capital Wrap-Up Template (CWT) will represent the Accounts Receivable balance from the Government of Ontario on the 2009-10 F/S  Ministry must meet audit requirements for Public Accounts

3. 2007-08 Grants for Student Needs 3 Submission Timelines  Ministry to review Boards’ submitted CWT from 2010-11 Estimates (These were submitted July 31, 2010 with estimates to August 31, 2010)  A Ministry reviewed template will be sent to Boards in early October  Boards will update their reviewed CWT based upon actual information as of August 31, 2010  Boards to submit updated CWT and specified audit procedures report with 2009-10 audited F/S – Deadline November 15, 2010 unless an extension has been granted by the Ministry

4. 2007-08 Grants for Student Needs 4 Debt Schedule  Agreed total principal outstanding of all debentures as at August 31, 2010 to 2009-10 audited F/S  Agreed each outstanding principal debenture balance as at August 31, 2010 to the notes in the 2009-10 audited F/S  For all new debentures issued in 2009-10, agreed the original amount of the debenture (face value), interest rate and terms to debenture agreements/by-laws  For debentures issued prior to 2009-10, agreed the original amount of the debenture (face value), interest rate and terms to either the debenture by-law, audited notes to the F/S or auditors’ prior year working papers  For each debenture, agreed the future debt payments (principal and interest) to supporting documentation (i.e. the amortization schedule in debenture agreement)

5. 2007-08 Grants for Student Needs 5 Debt Schedule continued  Agreed sinking fund (SF) contributions (up to August 31, 2010) for each SF debenture to supporting documentation (i.e. SF debenture by-law and/or amortization schedule)  Agreed future SF contributions for each SF debenture to supporting documentation (i.e. SF debenture by-law and/or amortization schedule)  Agreed the amount to be refinanced for each sinking fund debenture to supporting documentation (i.e. SF debenture by-law, Board motion/minutes)  Agreed assumed rate of return for each sinking fund debenture to supporting documentation (i.e. SF debenture by-law, Board motion/minutes)

6. 2007-08 Grants for Student Needs 6 Project Eligibility Amounts Schedule  Column 14 Represents: 1.Actual project costs incurred up to August 31, 2010; and 2.Estimated remaining project costs to be completed based upon approvals at August 31, 2010  Select 5 most recently completed permanent space projects  For actual project costs incurred up to August 31, 2010, obtain detailed listing from G/L and vouch the 5 largest invoices  Amounts to be Constructed should be nil as the sample is selected from completed projects

7. 2007-08 Grants for Student Needs 7 Not Permanently Financed (NPF)  Agreed opening NPF balance in 2009-10 FS Section 12 of EFIS to closing Capital Fund balance from audited 2008-09 F/S  Agreed closing NPF balance in 2009-10 FS Section 12 of EFIS to opening NPF balance in Section 12 worksheet of CWT  Select 5 projects based on 5 largest NPF balances from Column 21 of Project Eligibility Amounts Schedule of CWT  NPF = Total Project Costs – Long-Term (LT) Financing – Cash Contributions  For Project Costs in Column 14: For actual project costs incurred up to August 31, 2010, obtain detailed listing from G/L and vouch 5 largest transactions to invoices.  For LT Financing in Columns 19 and 20: Review Board’s allocation of debenture balances to each project and agree to supporting documentation (i.e. Board motion)

8. 2007-08 Grants for Student Needs 8 Not Permanently Financed (NPF) continued  For Cash contributions in Column 18:  For amounts recorded in Column 18, agree to Board motion/Ministry approval letter.  If no Cash reported in Column 18, enquire of Board if there was a Board motion or Ministry approval for the project and agree amount to Column 18.  For Amounts to be Constructed in Column 17.7 & 22:  Agreed to a summary of estimated project costs.

9. 2007-08 Grants for Student Needs 9 Project Debenture Matrix  Select 3 largest OFA and 3 largest Non-OFA debentures  Agree Board’s allocation of debt to different projects to supporting documentation. Examples include:  Board minutes/motions  Debenture by-laws  Debenture agreement  If the total allocation of the debt is less than 80% of the value of the debenture based upon supporting documentation, obtain explanation from Board.

10. 2007-08 Grants for Student Needs 10 Pupil Accommodation Debt Reserve (PADR) Balance  Consists of New Pupil Places (NPP), School Renewal and Other Reserves  The NPP portion of the reserve will reduce the Accounts Receivable balance from the Government of Ontario on the 2009-10 FS  Boards will be able to keep School Renewal and Other reserves  Table in the CWT will be completed by the Board  Balance of School Renewal reserve as of August 31, 2009 will be pre-loaded by the Ministry  Review the 2009-10 transactions and agree to 2009-10 active EFIS FS or supporting documentation  Provide a description and amount of other capital reserves reported in the 2008-09 FS

11. 2007-08 Grants for Student Needs 11 Leasing Report  Sample size: Select 50% of items reported up to a max of 4  Review each selected lease and ensure meets PSG 2 of CICA HB  Agree original capitalized value based upon lease agreement  Agree remaining capitalized value based upon lease agreement/amortization schedule  Agree implicit rate to lease agreement  Agree 2009-10 capital lease amount and lease escalator to lease agreement  Agree lease start and end date to lease agreement  Agree future annual lease amounts to lease agreement

12. 2007-08 Grants for Student Needs 12 Contacts Anthony Yeung Manager Transfer Payment Accountability Unit (416) 314-0790 Anthony.Yeung@ontario.ca Cheryl Dalrymple Finance Officer Transfer Payment Accountability Unit (416) 325-2038 Cheryl.Dalrymple@ontario.ca

13. 2007-08 Grants for Student Needs 13 QUESTIONS ??