Presentation on theme: "Agenda – Part A Changes to Sections Section 1: Summary of Allocations"— Presentation transcript:
0 2009-10 Financial Statement EFIS Forms September 2010Ministry of EducationTraining Sessions
1 Agenda – Part A Changes to Sections Section 1: Summary of Allocations Section 9: Transportation AllocationSection 11 – Primary Class Size ReductionSection 11 – Full Day KindergartenSection 16 – Declining EnrolmentSection 17 – Other GrantsPresented by Finance Officers
2 Agenda – Part B Overview of accounting changes Schedule 1: Consolidated Statement of Financial PositionSchedule 1.1: Consolidated Statement of OperationsSchedule 1.2: Consolidated Statement of Cash FlowSchedule 1.3: Consolidated Statement of Change in Net DebtSchedule 5: Detail of Accumulated Surplus/(Deficit)Schedule 5.5: List of Committed Capital Projects Funded by Accumulated SurplusPresented by Patrick Pelletier
3 Agenda – Part C Schedule 5.4: Proceeds of Disposition Calculations Schedule 5.1: Deferred Revenue ContinuityPresented by Karyn Morra
4 Agenda – Part DSchedule 5.2: Accounts Receivable Continuity – Government of Ontario – Approved CapitalSchedule 9: RevenuesSchedule 10: ExpensesSchedule 10ADJ: Adjustments for Compliance PurposesData Form D: Net ExpenditureSchedule 3: Capital ExpendituresData Form A.3: Revenue Recognition Criteria/Enveloping CriteriaPresented by Soundari Vigneshwaran
5 Agenda - Part E Schedule 3C: Tangible Capital Asset Continuity Schedule 10F: Employee BenefitsSchedule 10G: Supplementary Information on Retirement Benefits, Post-employment Benefits, Compensated Absences and Termination BenefitsPresented by Andrew Yang
6 Agenda - Part F Note 1: Significant accounting policies Note 2: Change in accounting policyNote 4: Accounts receivable – Government of OntarioNote 12: Tangible Capital AssetsNote 17: Budget dataNote 18: Partnership in Transportation ConsortiumNote 19: Accounting for Contributions Used for CapitalPresented by Andrew Yang
7 Part A – Changes to Sections Section 1: Summary of AllocationsSection 9: Transportation AllocationSection 11 – Primary Class Size ReductionSection 11 – Full Day KindergartenSection 16 – Declining EnrolmentSection 17 – Other Grants
8 Section 1 – Summary of Allocations New Lines Added:Capital Debt Support (1.29 & 1.51)Full Day Kindergarten (1.30 & 1.52)Green Schools Pilot(1.31)
9 Section 9 – Transportation Allocation Changes:Monthly average diesel benchmarks (9.14)Effectiveness and Efficiency amount (9.19)
10 Section 11–Primary Class Size Reduction Change:After the Ministry reviewed the historical costs and conducted discussions with the board on future requirements, the maximum entitlement may have been revised from the original entitlement provided to the boards in ( )
11 Section 11 – Capital Transitional Adj. Change:EFIS now allows for leasing costs that occurred in the current year as eligible for funding ( )
12 Section 11 – Full Day Kindergarten New Section:Allocation to provide funding for eligible capital expenditures which were incurred in the school year.Funding also provided for interest of short term interest costs
13 Section 16 – Declining Enrolment Change:School operations related to S23 programs provided in board facilities is now included in the calculation of the School Operations before top up ( )
14 Section 17 – Other Grants Change: Green Schools Pilot initiative allocation (17.2.1)
15 Common Errors in Submissions Incomplete submission packagePublished Financial Statements – No Management ReportDifferences between information reported in EFIS and the audited Financial StatementsF/S have not been corrected to reflect prior errors noted in FO ReviewsAppendix G not completed or completed for incorrect year.
16 Financial Statement Submission Package A complete submission includes:Two (2) signed copies of Schedules 1, 1.1,1.2,1.3 and Section 1, printed from the active EFIS submissionTwo (2) hard copies of the audited financial statements with the auditors’ and management reports and notesActive EFIS fileSubmit to the mail box:Electronic copy of Appendix CElectronic copy of Warning Report in Excel along with explanationsElectronic copy of Capital Wrap-UpDue date is November 15, 2010
18 Part B – Changes to Schedules Overview of accounting changesSchedule 1: Consolidated Statement of Financial PositionSchedule 1.1: Consolidated Statement of OperationsSchedule 1.2: Consolidated Statement of Cash FlowSchedule 1.3: Consolidated Statement of Change in Net DebtSchedule 5: Detail of Accumulated Surplus/(Deficit)Schedule 5.5: List of Committed Capital Projects Funded by Accumulated Surplus
19 Overview of reporting changes Moved funds and reserves to accumulated surplus as at September 1, 2009 as per PS-1200.Implemented tangible capital assets (TCA) as at September 1, 2009 as per PS-3150.Restated deferred revenue (proceeds of disposition) as a result of implementing PS3150.Forms DO NOT include deferred capital contributions (DCC).Forms DO NOT include the new compliance model, as this will be effective September 1, 2010.Updated terminology to be on an accrual basis (ex. expenses), rather than on a cash basis (ex. expenditures).Included the impact of the capital wrap-up as at August 31, 2010.
20 PSAB Standard being implemented PS1200 – Financial Statement Presentation.31 - Financial statements should include a statement of financial position, a statement of operations, a statement of change in net debt, and a statement of cash flow.PS3150 – Tangible Capital Assets.07 - Tangible capital assets should be accounted for and reported as assets on the statement of financial position
21 Consolidated Statement Schedules Schedules 1 through 1.3 have been updated to conform to PSAB section PS-1200 and guideline PSG-4Schedule names changed toSchedule 1 – Consolidated Statement of Financial PositionSchedule 1.1 – Consolidated Statement of OperationsSchedule 1.2 – Consolidated Statement of Cash FlowSchedule 1.3 – Consolidated Statement of Change in Net Debt
22 Schedule 1 – Consolidated Statement of Financial Position Presentation changesTemporary investments (item 1.2): Temporary investments are transitional or current in nature, such as short-term investments made to obtain a return on a temporary basis (> 90 days and < 1 year)Long-term investments (item 1.5): Long-Term Investments are investments greater than one year from date of acquisition in organizations that do not form part of the government reporting entity (> 1 year)A/R – Approved Capital (item 1.4): Line has been added to segregate the portion of accounts receivable related to the Capital Wrap-Up.
23 Schedule 1 – Consolidated Statement of Financial Position Presentation changesNet Debt (item 3): The name of the difference between liabilities (item 2.7) and financial assets (item 1.7) has changed to Net DebtTangible Capital Assets (item 4.3): Schedule now includes a line for Tangible Capital Assets under Non-Financial Assets due to the implementation of TCA as of September 1, 2009 (PS-3150)Accumulated Surplus (Deficit) (item 5): The name of the sum of Net Debt (item 3) and Non-Financial Assets (item 4.4) has been changed to Accumulated Surplus (Deficit)Fund balances and Amounts to be recovered have been removed
24 Schedule 1.1 – Consolidated Statement of Operations Presentation changesExpenses (item 2): The name of item 2 has changed from Expenditures to Expenses as boards are now reporting on a full accrual basisAnnual Surplus/(Deficit) (item 3): Revenues (item 1.9) less expenses (item 2.8) is now Annual Surplus/(Deficit) – previously Net revenue(expenditure)The following items have been addedAccumulated Surplus / (Deficit) at beginning of year (item 3.1)Accumulated Surplus / (Deficit) at end of year (item 3.2)The following items have been removedThe Increase in Non-Financial AssetsChange in Net Assets/LiabilitiesChange in Amounts to be RecoveredChange in Fund Balances
25 Schedule 1.1 – Consolidated Statement of Operations Budget (Restated & Unaudited)Amounts under the Budget column need to be restated and reconciled for the Financial StatementsCapitalization of Tangible Capital Assets (TCA), amortization, and amounts to be recovered were not budgeted for EstimatesActual and Budget amounts will both need to be used for the restated amountsActual amounts only to be used when boards did not budget at EstimatesItems to be restated/reconciledItem 3.1: Accumulated Surplus/(Deficit) at beginning of yearItems 2.1 – 2.6: Expenses
26 Schedule 1.1 – Consolidated Statement of Operations Budget (Restated & Unaudited)Item 3.1 Restatement/Reconciliation of opening accumulated surplus/(deficit):Accumulated Surplus includesFund Balances (generally positive/surplus)Amounts to be Recovered (ATBR) balances (generally negative/deficit)Net book value of TCAPortion of Proceeds of Disposition relating to the NBV of disposed assets to be included in A/S
27 Schedule 1.1 – Consolidated Statement of Operations Budget (Restated & Unaudited)Item 3.1 Restatement/Reconciliation of opening accumulated surplus/(deficit):Budget amounts will be used forFund Balances (generally positive/surplus) as at Sept 1, 2009Actual amounts will be used forAmounts to be Recovered (ATBR) balance (generally negative/deficit) as at Aug 31, 2009Net book value of TCA as at Sept 1, 2009Portion of Proceeds of Disposition relating to the NBV of disposed assets as at Sept 1, 2009
28 Schedule 1.1 – Consolidated Statement of Operations Budget (Restated & Unaudited)Item 3.1 Restatement/Reconciliation:The restated amount is calculated as:Budget at Sept. 1st, From EstimatesOperating Fund (from Sch. 2.1, item 8.1) XXCapital Fund (from Sch. 2.2, item 7.1) XXReserve Fund (from Sch. 2.3, item 4.1) XXSchool Activity Fund (from Sch. 2.4, item 5.1) XXActual at Aug. 31, From Financial StatementsATBR – Total amount (from Sch. 1, item 7) (XX)Actual at Sept. 1st, From Financial StatementsNet Book Value of TCA (Sch 3C, total NBV) XXAccum. Surplus: Portion of POD (Sch. 5, item 4.9) XXAccum. Surplus/(Deficit) at the beginning of year (restated) XX
29 Schedule 1.1 – Consolidated Statement of Operations Budget (Restated & Unaudited)Item 2.4 Restatement/Reconciliation for Pupil Accommodation expense:Budget amounts will be used forPupil accommodation expenditureEstimated Capital Expenditures on Land and BuildingsActual amounts will be used forMinor TCA Additions (First time equipping)AmortizationWrite downs
30 Schedule 1.1 – Consolidated Statement of Operations Budget (Restated & Unaudited)Item 2.4 Restatement/Reconciliation:The restated amount is calculated as:Budget - From EstimatesPupil Accommodation Expenditure (Sch. 1, item 2.5) XXLess: Estimated Capital Expenditures (Sch. 3, Col ) (XX)Actual - From Financial StatementsLess: Minor TCA Additions (from Sch. 3C – first time equipping) (XX)Plus: Amortization (from Sch. 3C) XXPlus: Write downs (from Sch. 3C) XXRestated – Pupil Accommodation Expense XX
31 Schedule 1.1 – Consolidated Statement of Operations Budget (Restated & Unaudited)Items 2.1, 2.2, 2.3, and 2.6 Restatements:Amortization and write downs distributed to the five expense categories for Financial StatementsRestatements to include Actual Amortization Expense and Write downs from Financial StatementsBoards required to reallocate the Actual amortization and write downs from the Pupil Accommodation expense to the other 4 specific expense categoriesInstruction (item 2.1)Administration (item 2.2)Transportation (item 2.3)Other (item 2.6)
32 Schedule 1.1 – Consolidated Statement of Operations Budget (Restated & Unaudited)Items 2.1, 2.2, 2.3, and 2.6 Restatements:Full amortization/write downs included in pupil accommodation expense after restatement aboveDeduct amortization/write down portion related to other expense categories from pupil accommodation expenseReallocate portion of amortization/ write down from Pupil Accommodation to the specific expense categoryNote that mTCA additions that are not first time equipping would need to be deducted from items 2.1, 2.2, 2.3, and 2.6 as part of the restatement
33 Schedule 1.1 – Consolidated Statement of Operations Actual (Restated)Item 2.4 Restatement/Reconciliation:Only Actual amounts from the Financial Statements requiredActual amounts that are requiredPupil Accommodation ExpenditureTCA Additions (Land, buildings and first time equipping)Amortization (buildings and first time equipping)Write downs
34 Schedule 1.1 – Consolidated Statement of Operations Actual (Restated)Item 2.4 Restatement/Reconciliation:The restated amount is calculated as:Actual - From Financial StatementsPupil Accommodation Expenditure (Sch. 1, item 2.5) XXLess: Actual additions (Sch. 3C – land, buildings, first time equipping) (XX)Plus: Amortization (from Sch. 3C, buildings, first time equipping) XXPlus: Write downs (from Sch. 3C, total write downs) XXRestated – Pupil Accommodation Expense XX
35 Schedule 1.1 – Consolidated Statement of Operations Actual (Restated)Items 2.1, 2.2, 2.3, and 2.6 Restatements:column to be restated to include Actual Amortization Expense and Write downs from Financial StatementsBoards required to reallocate the Actual amortization and write downs from the Pupil Accommodation expense to the other 4 specific expense categoriesInstruction (item 2.1)Administration (item 2.2)Transportation (item 2.3)Other (item 2.6)
36 Schedule 1.1 – Consolidated Statement of Operations Actual (Restated)Items 2.1, 2.2, 2.3, and 2.6 Restatements:Full amortization/write downs included in pupil accommodation expense after restatement aboveBoards that did not split amortization by categories in prior you could allocate amortization proportionately based on amortization (proposed approach)Deduct amortization/write down portion related to other expense categories from pupil accommodation expenseReallocate portion of amortization/ write down from Pupil Accommodation to the specific expense categoryNote that mTCA additions that are not first time equipping would need to be deducted from items 2.1, 2.2, 2.3 and 2.6 as part of the restatement
37 Schedule 1.2 – Consolidated Statement of Cash Flows Statement Details:This statement replaces the previous Statement of Changes in Financial PositionThe Statement of Cash Flows shows how a board generated and used cash and cash equivalents in the accounting period and the change in cash and cash equivalents in the periodIt also shows the cash and cash equivalents at the beginning and end of the accounting periodPresentation Changes:Statement includes 4 sectionsOperating TransactionsCapital Transactions - NewInvesting TransactionsFinancing Transactions
38 Schedule 1.2 – Consolidated Statement of Cash Flows Presentation Changes:Item 2.1 has been created to add back the non-cash items (including amortization, write downs and gain/loss on disposal)Items 2.9 and 2.10 have been added to include the (increase) decreases in prepaid expenses and inventories of supplies.Items 3.1 (Proceeds on sale of TCA) and 3.2 (Cash used to acquire TCA) have been created to include the capital cash flows.Item 5.2 (Temporary borrowings) has been added; in prior years amount was netted and included with Cash and Cash Equivalents (item 6)
39 Schedule 1.3 Statement of Change in Net Debt Statement Details:The statement of Change in Net Debt reports the extent of the change in the board’s net debt resulting from tangible capital asset activity and other non-financial asset activity (prepaid expenses and inventories of supplies) in the accounting periodThe statement also reports the net debt at the beginning and end of the yearPresentation Changes:Tangible Capital Asset Activity includeAcquisition, Amortization, Write-downs of tangible capital assetsProceeds on sale of tangible capital assets and the gain/loss on the sale of tangible capital assetsOther Non-Financial Asset ActivityAcquisition and consumption of supplies inventoriesAcquisition and use of prepaid expenses
40 Schedule 1.3 Statement of Change in Net Debt Instructions for EFIS:Tangible Capital Asset Activity:Actual:Tangible Capital Asset Activity balances are automatically forwarded from amounts recorded on Schedule 3C (Tangible Capital Assets Continuity) and Schedule 5.4 (Proceeds of Disposition Calculation)Actual (Restated):Due to the addition of Schedule 1.3, boards will need to complete the Actual (Restated) column using prior year’s Schedule 3CBudget:Given that this is the first year of implementation and that budget numbers are not readily available for proper disclosure, boards would not be required to report numbers under the budget column
41 Schedule 1.3 Statement of Change in Net Debt Instructions for EFIS (continued):Other Non-Financial Asset Activity:Actual and Actual (Restated):Boards are required for PSAB purposes to record the inflows and outflows of prepaid expenses and inventories of suppliesIn prior year only the net impact was requiredBoards would obtain this information from their general ledgerBudget:Given that this is the first year of implementation and that budget numbers are not readily available for proper disclosure, boards would not be required to report numbers under the budget column
42 New Schedule 5 – Detail of Accumulated Surplus / (Deficit) Purpose:To be in compliance with PS1200Standard was effective for fiscal years starting on or after January 1, 2009, therefore Boards are required to implement for school yearBoards were required to reallocate fund balances and amounts to be recovered to new accumulated surplus accounts at the beginning of the school year4242
43 New Schedule 5 – Detail of Accumulated Surplus / (Deficit) Replacing Schedules 2.1 to 2.4, Old Schedule 5 and Appendix IPreviously4 fund accountsOperating (Schedule 2.1)Capital (Schedule 2.2)Reserve (Schedule 2.3 and old Schedule 5)School Activity (Schedule 2.4)4 amount to be recovered (ATBR) accounts (Appendix I)Employee Future BenefitsInterest to be accruedVacation accruedCapital Financing4343
44 New Schedule 5 – Detail of Accumulated Surplus / (Deficit) Starting in :3 Accumulated Surplus (Deficit) accountsAvailable for Compliance - UnappropriatedAvailable for Compliance – Internally AppropriatedUnavailable for ComplianceThese 3 classifications will start to be used for compliance purposes in the School Year per Education Act, 231.(1)4444
45 New Schedule 5 – Detail of Accumulated Surplus / (Deficit) Breakdown of Accumulated Surplus (Deficit) allocationAvailable for Compliance – Unappropriated includesTotal Operating (previously operating fund and working funds) (formerly Sch. 2.1 and reserve for working funds, item 1.2 on old Sch. 5)Available for Compliance – Internally Appropriated includesRetirement Gratuities (formerly on old Sch. 5)WSIB (formerly on old Sch. 5)Pupil Accommodation Debt Reserve (NPP portion) (formerly on item 1.7 on old Sch 5)Pupil Accommodation Debt Reserve (School Renewal portion) (formerly on item 1.7 on old Sch 5)Pupil Accommodation Debt Reserve (Other) (formerly on item 1.7 on old Sch 5)Pupil Accommodation (NPP) – Deferred Revenue (new - discussed later in presentation)Other Purposes Operating (formerly on old Sch. 5)Other Purposes Capital (formerly on old Sch. 5)45
46 New Schedule 5 – Detail of Accumulated Surplus / (Deficit) Unavailable for ComplianceEmployee Future Benefits (formerly on Appendix I – ATBR)Interest to be Accrued (formerly on Appendix I – ATBR)Vacation Accrued (formerly on Appendix I – ATBR)Debt (formerly capital financing on Appendix I – ATBR)Not Permanently Financed Amounts (formerly item 7.2 on Sch. 2.2)School Generated Funds (formerly on Sch. 2.4 and item 1.3 on Sch. 5)Net TCA (new – discussed later in presentation)Receivable from Province re: Capital Wrap-Up (new – discussed later in presentation)Net Book Value of Proceeds of Disposition (new – discussed later in presentation)Committed Capital Projects (new – from Schedule 5.5)
47 Reallocation of fund/ ATBR accounts to accumulated surplus 47
48 Schedule 5 – Detail of Accumulated Surplus / (Deficit) Pupil Accommodation Debt Reserve:Boards must separately enter the portion of the pupil accommodation debt reserve that is related to NPP (item 2.3.2), School Renewal (item 2.4), and Other (item 2.5)The sum of the 3 cells must equal the closing balance of the Pupil Accommodation Debt Reserve (Item 1.7 on prior year’s Schedule 5)The split is required for the calculation of the net receivable from the Province as a result of the Capital Wrap-up
49 Schedule 5.5 – Committed Capital Projects Purpose:Schedule includes a listing of all capital projects expenditures on which the board committed accumulated surplus.Board must set accumulated surplus aside to support the future amortization related to these projectsBoards will record the continuity of the committed capital projects on this schedule
50 Schedule 5.5 – Committed Capital Projects Instructions for EFIS:Boards are to allocate the portion of annual surplus that they wish to use in future years on specific capital items in items 2.11 through 2.15 on Schedule 5In the year the board incurs costs on the projects, it will decrease this amount from the Internally Appropriated: Other Purposes – Capital line and will increase Unavailable for Compliance: Committed Capital Projects (item 4.10) by the same amount through Schedule 5.5 – List of Committed Capital Projects Funded by Accumulated Surplus.
52 Part C – Changes to Schedules Schedule 5.4: Proceeds of Disposition CalculationsSchedule 5.1: Deferred Revenue Continuity
53 Schedule 5.4: Proceeds of Disposition Calculations The implementation of TCA as per PS 3150 will require changes on how proceeds of disposition are reflected in the financials.The amount of proceeds available for future capital purchases (per Reg. 446/98) will remain the same.Old presentation:The entire proceeds were recorded as deferred revenue on Schedule 5.1.presentation:Only the gain will be recorded as deferred revenue on Schedule 5.1.The remainder of the proceeds will be recorded on Schedule 5 (Detail of accumulated surplus).
54 Schedule 5.4: Rationale for Change Before :Boards expensed TCA, thus no gains or losses were recorded when the assets were sold.For real property, the entire proceeds on sale would have been recorded as revenue, but due to Reg. 446/98, this revenue was deferred.In :Boards capitalize TCA and are required to restate opening TCA balances.TCA that was expensed in the past will be restated to show a TCA and a corresponding increase to accumulated surplus.Since TCA is being restated, the proceeds of disposition deferred revenue (POD-DR) must also be restated to reduce the amount of revenue that would have been recognized under PS3150.This restatement is in accordance with PSAB standards and Reg. 446/98.Impact:Requires opening balance restatement and change in in-year transaction presentation.
55 Schedule 5.4: In-Year JEs Before 2009-10 JE1 DR: Asset expense 100,000CR: Cash ,000To purchase asset. Asset completely expensed.JE2 DR: Cash ,000CR: Revenue from proceeds 120,000To sell asset. No NBV to remove from books.JE3 DR: Revenue from proceeds 120,000CR: Deferred Revenue 120,000Deferred revenue contains the entire proceeds of disposition.
56 Schedule 5.4: In-Year JEs in 2009-10 (Gain) JE4 DR: TCA ,000CR: Cash ,000To purchase asset. Asset capitalized.JE5 DR: Cash ,000CR: Gain on Sale ,000CR: NBV ,000To sell asset at a gain. NBV removed from books.JE6 DR: Gain on Sale ,000CR: Deferred Revenue ,000Gain deferred as per regulation.JE7 DR: Accumulated Surplus (Net TCA) ,000CR: Accumulated Surplus (NBV of POD) ,000Entry in G/L to track portion of proceeds. Not entered in financials.Proceeds of $120,000 are tracked in deferred revenue ($20,000) and accumulated surplus (NBV of POD) account ($100,000).
57 Schedule 5.4: In-Year JEs in 2009-10 (Loss) JE8 DR: TCA ,000CR: Cash ,000To purchase asset. Asset capitalized.JE9 DR: Cash ,000DR: Loss on Sale ,000CR: NBV ,000To sell asset at a loss. NBV removed from books.JE10 DR: Accumulated Surplus (NBV of POD) 10,000CR: Loss on Sale ,000When closing out Statement of Operations to Accumulated Surplus, the loss will be segregated.JE11 DR: Accumulated Surplus (Net TCA) 100,000CR: Accumulated Surplus (NBV of POD) 100,000Entry in G/L to track portion of proceeds.Proceeds of $90,000 are tracked in accumulated surplus (NBV of POD) account ($100,000 - $10,000 = $90,000).
58 Schedule 5.4: Opening Balance Restatement Since the accumulated surplus opening balance was restated due to PS3150, the opening deferred revenue balance must also be restated.The August 31, 2009 deferred revenue balance contains historical proceeds.The deferred revenue for September 1, 2009 must be reduced to contain only the historical gains.The entry required is:DR: Deferred Revenue [Proceeds – Gains]CR: Accumulated Surplus (NBV of POD) [Proceeds – Gains]To restate deferred revenue opening balance to include only gains.
59 Schedule 5.4: Opening Balance Implementation Boards must look at all the sales that are reflected in their August 31, 2009 deferred revenue balances for proceeds of disposition.These records will be available since boards were required to record the deferred revenue initially.Using the first in, first out principle, the deferred revenue will contain the proceeds from sales that took place most recently, likely since TCA started to be tracked in 2005.Boards must note the NBV of each asset sold.With the proceeds and NBV, boards can identify the gain or loss on each sale.
60 Schedule 5.4: Opening Balance Calculations Assume a board had $1M in deferred revenue for proceeds of disposition at August 31, 2009, related to three assets.Proceeds of DispositionNet Book ValueGain on SaleLoss on SaleAsset 1$200,000$150,000$50,000n/aAsset 2$300,000$400,000$100,000Asset 3$500,000$350,000Total$1,000,000$900,000DR: Deferred Revenue 800,000CR: Accumulated Surplus (NBV of POD) ,000To restate deferred revenue opening balance to include only gains.Calculated as proceeds ($1,000,000) less gains ($200,000).
61 Schedule 5.4: EFIS Entries New Schedule 5.4 was created to track proceeds of disposition for capital policy purposes.The schedule is for tracking proceeds on sale of real property (i.e. tracking for Reg. 446/98).This is because deferred revenue alone does not hold the entire proceeds.The other part of the proceeds is reflected in accumulated surplus unavailable for compliance (NBV of POD line).Accumulated surplus (NBV of POD)+ Deferred revenue (Gain on Disposal)= Total proceeds of dispositionNote: In all cases, boards are required to complete items 1.1 to In consultation with their auditors, boards should consider materiality in deciding whether or not to complete items 2.1 to 3.10.
62 Schedule 5.4: EFIS Entries for Opening Balance Record August 31, 2009 closing proceeds of disposition deferred revenue balances in column 1 on Schedule 5.4 (ex. $1,000,000).Record August 31, 2009 gain determined in column 5 on Schedule 5.4 (ex. $200,000).Automatically transferred to the opening balance column on Schedule 5.1 (Deferred Revenue, items 2.22, 2.23 or 2.24).The portion in accumulated surplus ($1,000,000 - $200,000 = $800,000) will automatically be calculated.Automatically transferred to opening balance column on Schedule 5 (Detail of Accumulated Surplus, item 4.9).Boards are to keep the three disposition categoriesSchool BuildingsProhibitive to RepairOther (includes land)SAMPLE DATAOpening BalanceProceeds of DispositionNet Book ValueGain on SaleLoss on SaleTotal$1,000,000$900,000$200,000$100,000
63 Schedule 5.4: EFIS Entries, In-Year Activity (Gain) Record in-year proceeds of disposition in column 2 on Schedule 5.4 (ex. $120,000).Automatically included in Schedule 3C, screen 3, in the Proceeds of Disposition column by Asset Upload.Record in-year gain on sale in column 6 on Schedule 5.4 (ex. $20,000).Automatically transferred to the Contributions Received column on Schedule 5.1 (Deferred Revenue, items 2.22, 2.23 or 2.24).Automatically included in Schedule 3C, screen 3, in the Gain/(Loss) column by Asset Upload.Record the net book value of the asset sold in column 12 on Schedule 5.4 (ex. $100,000).Automatically transferred to the Schedule 5 (Detail of Accumulated Surplus) In-Year Change column (item 4.9).SAMPLE DATAIn-Year TransactionProceeds of DispositionNet Book ValueGain on SaleLoss on SaleTotal$120,000$100,000$20,000n/a
64 Schedule 5.4: EFIS Entries, In-Year Activity (Loss) Record in-year proceeds of disposition in column 2 on Schedule 5.4 (ex. $90,000).Automatically included in Schedule 3C, screen 3, in the Proceeds of Disposition column by Asset Upload.Record the total of in-year losses on sale in column 13 on Schedule 5.4 (ex. -$10,000)Automatically included in Schedule 3C, screen 3, in the Gain/(Loss) column by Asset Upload.Automatically included on Schedule 10 in the Loss on Disposal of TCA line (item 80.1, Col.12).Automatically transferred to the Schedule 5 (Detail of Accumulated Surplus) In-Year Change column (item 4.9).Record the net book value of the asset sold in column 12 on Schedule 5.4 (ex. $100,000).SAMPLE DATAIn-Year TransactionProceeds of DispositionNet Book ValueGain on SaleLoss on SaleTotal$90,000$100,000n/a$10,000
65 Schedule 5.4: In-Year Approvals The entire proceeds of disposition will be used when they are expensed against projects for which the Ministry issued an approval.The change in accounting methodology does not alter this policy.Continuing the same example, the board has $1,120,000 of proceeds available for use ($1,000,000 opening plus $120,000 in-year) on the School Buildings item 1.1.The board has $220,000 of deferred revenue available to recognize as revenue ($200,000 opening plus $20,000 in-year), item 2.1.In accumulated surplus, the board has $900,000 accumulated surplus ($800,000 opening plus $100,000 in-year), item 3.1Assume the board spends $500,000 of its Ministry approval.Record the approval spent at item 1.1, Col. 3.The board can use a maximum of $220,000 of its deferred revenue available; this amount is automatically included at column 9.The balance of the Ministry approval amount, calculated as $500,000 less $220,000 = $280,000, will be automatically deducted at:Sch. 5.4, item 3.1, Col. 14Sch. 5 (Detail of Accumulated Surplus, item 4.9, Col. 2),
66 Schedule 5.1: Deferred Revenue The deferred revenue schedule is similar to the old schedule in that it has:Operating and capital sectionsLegislative and non-legislative grant sectionsDifferences include:ALL deferred revenue is now recorded on Schedule 5.1.Previously, Schedule 5.1 contained only a partial listing of deferred revenue, with some amounts being recorded separately in Other Deferred Revenue on Schedule 7.Term ‘externally restricted reserve’ changed to ‘deferred revenue’.Removed the term ‘reserve’ throughout.Pupil Accommodation allocation is now split into two lines.New line for Transfer of pupil accommodation – NPP closing balance to revenuesFormat is similar to Estimate form, but does not include DCC.
67 Schedule 5.1: Deferred Revenue Divided form into sections:Legislative GrantsOther Ministry of Education GrantsOther Provincial Grants (ex. other ministries)Third Party amounts (ex. school boards, colleges, hospitals, federal government, …)New Lines:Internal AuditGreen Schools PilotInsurance Proceeds for Capital Appurtances.Board Level Donations raised specifically for capital purchases.School Generated Funds raised specifically for capital purchases.Changed Lines:Proceeds of Disposition Reserve changed to Gain on Disposal as explained in Schedule 5.4 section.
68 Schedule 5.1: Deferred Revenue – Pupil Accommodation ChangeNow split into two linesLine Pupil Accommodation – School RenewalLine Pupil Accommodation – NPPPurposeTo determine the portion of deferred revenue related to NPP that will be recovered against the approved capital debt amount from the capital wrap-up.Implication on EFISBoards required to input:Opening balance at September 1, 2009 (Col. 1)Earnings on deferred revenue (Col. 3)Transfers to revenues (Col. 4)Amounts for NPP are populated based on information in Data A3 less amounts inputted on lineAdditional line, (Transfer of pupil accommodation – NPP closing balance to revenue) is included to transfer the deferred revenues closing balance related to NPP on line 2.2.2, Col. 5 to revenues.Amount also populated in Sch. 5.2 A/R for Approved Capital (item 2.1, Col. 8)
70 Part D – Changes to Schedules and Data Forms Schedule 5.2: Accounts Receivable Continuity – Government of Ontario – Approved CapitalSchedule 9: RevenuesSchedule 10: ExpensesSchedule 10ADJ: Adjustments for Compliance PurposesData Form D: Net ExpenditureSchedule 3: Capital ExpendituresData Form A.3: Revenue Recognition Criteria/Enveloping Criteria
71 Schedule 5.2 - Accounts Receivable Continuity This is a new schedule in used to track the board’s net account receivable from the province for eligible capital expendituresPer SB memo 10, the Ministry is wrapping up the capital grant allocation modelThe purpose of this schedule is to summarize the transactions that make up the net amount of eligible capital debt, net of NPP reserves and NPP deferred revenues that the Province will recognize as revenueReceivable from the ProvinceItems 1.1 to 1.9 on this schedule calculate the amounts receivable from the Province that relate to the wrap-up of existing capital programsRecovery of Pupil Accommodation Debt Reserve & NPP Deferred Revenues balanceThe receivable from the province is reduced to the extent the board has a payable to the province related to the Pupil Accommodation debt reserveAlso reduced by the amounts of the NPP deferred revenue transferred into revenuesAny amounts receivable for Early Learning should not be included in the schedule. Will be part of “regular” amount receivable – Government of Ontario
72 Schedule 5.2 - A/R from Province (cont’d) This schedule is completed using information from the Capital Wrap-Up Template as well as pre-populated amounts from Schedule 5 – Details of Accumulated Surplus / (Deficit) and Schedule 5.1 – Deferred RevenueSupported permanently financed amount (column 1)The total supported permanently financed amount is entered by the boards using the Capital Wrap-Up Template (EFIS Section 12 tab) and represents the portion of the outstanding debt that the Ministry will recognize as part of the capital grant allocation wrap-upSupported not permanently financed (NPF) amount (column 2)The total supported NPF amount is also entered by the boards using amounts from the Capital Wrap-Up Template EFIS Schedule 3 (pg 3) tab. This represents the portion of NPF that the Ministry will recognize as part of the capital grant allocation wrap-upIf the board has pre-financed (i.e. the board has obtained financing but has not yet made any expenditures), no amount will appear in column 2. Any supported financing will be included in column 1
73 Schedule 5.2 - A/R from Province (cont’d) Total Receivable Balance as at August 31, 2010 (column 3)The total supported debt both permanently financed and not permanently financed is reported here under column 3, line 1.9Amount of NPP allocation previously flowed that remained in PA Debt ReserveThe reserve balance, and the NPP deferred revenue balance as of August 31, 2010 is offset against the revenue on the wrap-upFrom a cash flow perspective, the reserves as of August 31, 2010 will be recovered through offsets against amounts owing for future capital grant entitlements or against cash payable to school boards for supported debt servicing costs, or a combination of bothEnsures that the debt from approved capital expenditures is not funded twice; once through funding allocated for capital purposes but not spent, and again through the Ministry’s one time grantThe columns 4, 5 and 6 of Schedule 5.2 are used to recover this pupil accommodation debt reserve as at August 31, 2010The debt reserve amount in column 4 is pre-populated from Schedule 5, column 3, items , 2.4 and 2.5. This amount is reduced by the school renewal and the other components reported on columns 5 and 6 (Schedule 5, column 3, items 2.4 and 2.5) to arrive at the NPP Component of the PA Debt Reserve to be recoveredColumn 8 populates the Pupil Accommodation – NPP deferred revenue closing balance before recovery from Schedule 5.1
74 Schedule 5.2 - A/R from Province (cont’d) The amount of the net receivable from the Province as at August 31, 2010 calculated on Schedule 5.2 is summarized in the transaction as follows to record the receivable from the Province and revenue to the board:DR: Accounts Receivable – Government of Ontario (Schedule 5.2) $XXX,XXX,XXXCR: Revenue (Schedule 9, item 1.1) $XXX,XXX,XXXTo record a receivable from the province as at August 31, 2010, based on the supported capital debt (net of reserves / deferred revenue)This entry shows that boards will record a receivable from the Province, and a corresponding revenue as of August 31, 2010The receivable is reported separately on Schedule 1, line 1.4 – Accounts Receivable – Government of Ontario, Approved Capital. The revenue side of this entry is pulled as part of Schedule 9, item 1.1 – Legislative grants current year
75 Schedule 9 – RevenuesThe purpose of this schedule is to collect revenue informationAll revenues reported on this Schedule (including all legislative grants, federal grants, third party revenues, etc)Major ChangesName changed from Operating Fund Revenues to RevenuesAll capital and operating revenues previously recorded in the funds schedules will now be included on Schedule 9 (funds no longer presented under PSAB – 1200)The schedule has been reorganized to align the headings with the summary categories presented on Schedule 1.1 (Consolidated Statement of Operations)Line 1.1 – legislative grants (current year) includes Capital Wrap-Up net receivable from provinceNew lines added for:School Generated Funds (lines 4.1 and 4.2)Lines 8.12 and 8.13 for Board Level donationsNet gain on disposal of assets to be reported on line 8.16New lines included to report Amounts from Deferred Revenue
76 Schedule 9 – (cont’d)Amounts from Deferred Revenue pre-populated onto 5 categories on Schedule 9 from Schedule 5.1:All amounts received from the Government of Ontario that are non-grants e.g. secondments of staff to EDU are to be reported on line 8.14 – Government of Ontario: Non-grant paymentsNew line added for Net Gain on disposal of assets – line This will be shown if the total gain/loss on disposal from Schedule 3C less the deferred gain on disposal proceeds subject to restriction (reported on Schedule 5.1) is a positive number
77 Schedule 10 – ExpensesThe purpose of this schedule is to collect expense information on a PSAB basis by expenditure category within functional areas and will be reported on a fully accrual basisExpenses reported under the five categories in accordance with the Uniform Code of Accounts:InstructionAdministrationTransportationPupil AccommodationOtherMajor ChangesName changed from Operating Fund Expenditures to ExpensesAll expenses previously reported in the funds will now be recorded on Schedule 10 under PSAB (as per PS-1200)New lines added for reporting amortization expenses and net loss on disposalReplacement Furniture and Equipment column removed (previously column 6)
78 Schedule 10 – (cont’d) Tangible Capital Assets reporting: Capital spending that meets the capitalization criteria per the TCA guide will not be reported on Schedule 10; they will be included on the TCA Continuity Schedule 3C as well as Capital Expenditures Schedule 3Capital expenses that do NOT meet the capitalization criteria are to be reported under column 05 – Supplies and ServicesColumn 05 includes also items related to Replacement of Furniture and Equipment and “Other Capital” items considered as operatingAmortization expenses related to TCA to be recorded on Schedule 10 and split into the five categories; total of amortization expenses reported on Schedule 10, column 12 to tie back to the in-year amortization expenses reported on TCA Schedule 3CNew line added for Loss on Disposal of TCA – line This will be reported if the total gain/loss on disposal from Schedule 3C less the deferred gain on disposal proceeds subject to restriction is a negative numberPrepaid Expenses and Inventories of Supplies reporting:Previously expense reported on schedule 10 reflected goods and services acquired. Expenses are now required to be reported on a full accrual basis (i.e. reflect goods and services consumed)
79 Schedule 10 ADJ - Adjustments for Compliance Purposes The Ministry has introduced legislative changes effective that would more closely align compliance to PSAB. For , the current compliance model still appliesThe purpose of this is to calculate adjusted expenses for compliance purposes.This schedule captures all the adjustments to the expenses reported on Schedule 10 to arrive at the Adjusted Expenditures for Compliance purposesThe adjusted amounts are carried forward to Data Form D and used for variance analysis purposesMajor ChangesPrevious column for Increase/(Decrease) in Non-Financial Assets deletedNew columns added for :Amortization and Net Loss on Disposal of TCA; andSchool Generated Funds
80 Schedule 10ADJ – Data Entry Principal payments and increase in sinking funds on long-term debt continue to be included in adjustments for complianceThis column total = Debt principal payments + sinking fund contributions + increase due to interest in the sinking fund assetsAdjustments to interest and vacation accrual remain the same as in prior periods.For employee future benefits (EFB), boards must enter the increase/decrease in the unfunded EFB liability as in prior periodsAmortization expenses and loss on disposal excluded for compliance purposes as they do not represent cash payments. This is pre-populated from Schedule 10Amortization expenses reported on column 17 under the respective expenditure categoriesLoss on disposal reported on column 17 under the Pupil Accommodation categoryExpenses related to School Generated Funds are also excluded for compliance as they represent funds raised for specific purposes at the school level. To be pre-populated on column 18 under the Other category
81 Schedule 10ADJ (cont’d)Total expenses column (i.e. column 21) in Schedule 10 ADJ is pre-populated from the total in Schedule 10 and adjusted by the amounts in column 22The Adjusted Expenditures for Compliance (column 23) is carried forward to Data Form D to be used for variance analysis
82 Data Form DPurpose of this form is to show the current year’s funding allocations with respect to the net adjusted expenditures of the board. Line 17 of the form reflects the in-year operating results of the board before the impact of capital debt servicing costs and school renewalMajor ChangesColumns reporting allocations from the various funds have been removed. These include:Prior year surplus / (deficit)Net expenditures before transfers from reservesCapital expenditures funded from OperatingTransfers from reserve and school activities fundsAllocations and adjustments to entitlement for non-complianceTwo new columns added to reportThe amortization relating to mTCA. The amount on the total line is brought from Schedule 3C, screen 2, column for Amortization Expense (column 5)The distribution of Transfers to Deferred Revenue (column 9); previously reported on one line
83 Completing Data Form DData Form D starts with the Adjusted Expenditures for Compliance pulled from Schedule 10ADJThe form is divided into two parts:Calculation of Net Expenditures for ComplianceAllocations and VariancesTransfers to and from Deferred Revenue (legislative grants)Columns reporting to and from Deferred Revenue are to report amounts from Schedule 9, items 1.2 and 1.3The total of the column 8 – Transfer from deferred revenues excludes the amounts of the transfer to revenues on Schedule 5.1, item which is included in the amounts that is recovered from NPP reservesThis will be populated into lines 18 – School Renewal and / or line 20 – New Pupil Places, Best Start
84 Data Form D – Relationship to other Schedules Total Revenue (Schedule 9)Less: School Generated Funds (Schedule 9)Less: Capital Wrap-Up net receivable (Schedule 5.2)Less: Deferred Revenue recognized in current year less Pupil Accommodation amounts (Schedule 5.1)Less: Adjusted Expenditures for Compliance Purposes (Schedule 10ADJ)Plus: mTCA amortization expenses (Schedule 3C)Equals the Variance Reported on Data Form D
85 Schedule 3 - Capital Expenditures The purpose of this form is to capture the total capital expenditures incurred during the year broken down by the different functional areasAll capital expenditures recorded as Capitalized Expenditures on Schedule 3 column 1 should tie back to the total of the additions and betterments column recorded in the TCA continuity (i.e. Schedule 3C)This form is entirely input by boardsMajor ChangesName changed from Capital Fund – Expenditures and Financing to Capital ExpendituresThe summary section – Land, Buildings and Other TCA’s by Asset Class removedColumns and deletedThe entire screen 2 has been removed
86 Schedule 3 - Capital Expenditures Boards are asked to report capital expenditures on the different expense categories as broken down on Schedules 10 and 10ADJInstructionAdministrationTransportationPupil AccommodationOtherPupil Accommodation expenses to be reported as incurred by the following programs:School RenewalGood Places to LearnNew Pupil Places, Best StartGrowth Schools, PCS, Capital Transitional Adjustment and PTR projectsFull-time kindergarten accommodationEnergy Efficient Schools
87 Data Form A.3 - Revenue Recognition/Enveloping Criteria Data Form A. 3 replaces the previous Data Form A.2 for reporting the enveloping provisions for pupil accommodation allocationsThe purpose of the form is to align the enveloping criteria with the continuity of the Deferred Revenue balance for Pupil Accommodation and also track the “Accumulated Eligible Expenditures” where boards have incurred eligible expenditures in advance of the revenueData Form will no longer be applicable as of next year due to the capital wrap-up as of August 31, 2010Major ChangesThe opening balance populates from the (FO reviewed file) closing balance on this data formTwo new lines have been introduced to segregate amounts for the following. These amounts will be pulled from Schedule 3:School Renewal spent on capitalizable itemsNew Pupil Places and Best Start spent on capitalizable items
89 Part E – Changes to Schedules Schedule 3C: Tangible Capital Asset ContinuitySchedule 10F: Employee BenefitsSchedule 10G: Supplementary Information on Retirement Benefits, Post-employment Benefits, Compensated Absences and Termination Benefits
90 Schedule 3C – TCA Continuity Main ChangesOne new section – Leasehold ImprovementsTo capture betterments to assets under operating leasesFirst time to collect the informationAll cells except for the closing balance are enter cellsRefer to Appendix J of TCA guide for opening balance establishmentAdjustments to opening balance are available to all asset classesIMPORTANT – Adjustment to opening balance should be recorded as prior year restatement, not the in year activitiesNet Book Value – Opening Balance is calculated from GBV/AA opening and Adjustments to Opening Balance. It is carried forwarded to schedule 5 line 4.5Three new columns:Transfers Between Asset ClassesClosing Balance from Asset Upload DataError Message
91 Schedule 3C – TCA Continuity New Columns Transfer Between Asset ClassesOnly applies to land, land improvements and buildingsTransfer between regular asset classes and PRFS and between owned assets and capital leased assetsGrand total of transfer has to be zeroClosing Balance from Asset Upload Data and Error MessageThese two new columns are to cross check data integrityOnly applies to land, land improvement, building 40/20, building PRFS, CIP/PACOpening balances in Schedule 3C are preloaded from 0809 financial statementsTransfer between asset classes are entered by boardsIn year change (including adjustments to opening balance) are preloaded from data upload fileClosing balance August 31, 2010 column will be calculated using information from different sources (0809 F/S, board enter and data upload file)Ending balances from data upload file will be carried forwarded into column “closing balance from asset upload data”Two ending balances have to agree otherwise there will be error message
92 Schedule 10F - Employee Benefits Boards are required to refer to PSA Handbook Section 3250 and 3255 for terminologies used in schedule 10F and 10GRetirement Benefits, Post-Employment Benefits, Compensated Absences and Termination Benefits is broken down into four categoriesRetirement BenefitsRetirement Health, Dental, Life Insurance Plans etc.Post-employment Benefits/Compensated AbsencesTermination BenefitsThree new categories are addedWorker's Compensation BenefitsOPSEU Pension PlanOther Pension PlanThese categories were included in “other” in the pastNo change to following categoriesLife Insurance / Long-Term DisabilityStatutory Employee BenefitsExtended Health Benefits - Current EmployeesOMERSOther
93 Schedule 10G – Benefits Obligations Two new columnsColumn 21 – Expense Increase Due to Plan AmendmentInformation purpose - Expense increase due to plan amendment is included in the benefits expenseStarting , boards will be responsible for the increase for complianceColumn 22 – Discount rate used in actuarial assessmentRetirement/Sick Leave Gratuity Plans is broken down into two categoriesRetirement Gratuity PlansPost Employment Benefits/Compensated AbsencesThree new categories are addedTermination Benefits, OPSEU Pension Benefits and Other Pension BenefitsThese categories were included in “other” in the pastNo change to following categoriesRetirement Health, Dental, Life Insurance Plans etc.Long-term Disability PlansWorkers Compensation Benefits
95 Further Information Finance Officer Reporting Entity Team As a first point of contact, please direct queries to your finance officer, who will coordinate with the Reporting Entity Team to resolve your query.Reporting Entity TeamAndrew Yang Elizabeth SulkovskyProject Manager Senior Business & Policy AnalystSoundari Vigneshwaran Patrick PelletierBusiness Analyst Business Analyst