1. Transfer Payment and Financial Reporting Branch Ministry of Education 2006-07 Financial Statement Update TPFR Information Sessions Fall 2007

2. Transfer Payment and Financial Reporting Branch Ministry of Education 2 Topics to be discussed  2006-07 Financial Statement Changes  Common Errors noted during Financial Statement Review

3. Transfer Payment and Financial Reporting Branch Ministry of Education 3 Changes from 2006-07 Revised Estimates  Section 9 – Transportation Allocation  Section 10 – Administration & Governance Allocation  Section 11 – Pupil Accommodation Allocation  Section 12 – Debt Charge Allocation  Schedule 3 – Capital Fund – Expenditure & Financing

4. Transfer Payment and Financial Reporting Branch Ministry of Education 4 Changes from 2006-07 Revised Estimates (con’t)  Schedule 10 and 10 ADJ – Operating Expenditures  Schedule 10.4 – Supplementary Information on Salary Benefit Expenditures  Schedule 10 F – Employee Benefits  Schedule 21E – Deferred Revenues  Schedule 21H – Future Debt Payments

5. Transfer Payment and Financial Reporting Branch Ministry of Education 5 Section 9 – Transportation Allocation  The first phase of the Effectiveness & Efficiency reviews are complete as per 2007:SB14. The 2006-07 transportation allocation for nine school boards includes an adjustment at line 9.7.1  Refer to Table 9.1 in the 2006/07 Grant Regulations for board specific amounts. (http://www.e-laws.gov.on.ca)

6. Transfer Payment and Financial Reporting Branch Ministry of Education 6 Section 10 – Administration & Governance Allocation  Revisions to this section have been made pursuant to 2006: B10 and consistent with the format of the 07/08 Estimates  Trustee honoraria is now calculated fully through the forms (rather than calculated amount pre-loaded in EFIS). Input is required at items 10.1.1a to 10.1.1b and 10.2.1a to 10.2.1c  Item 10.3.5a uses 2005/06 ADE and is preloaded from the 05/06 Financial Statements

7. Transfer Payment and Financial Reporting Branch Ministry of Education 7 Section 10 – Administration & Governance Allocation  Trustee honorarium allocation for the period of Sept to Nov 2006 is calculated by multiplying Table 1 of Regulation 357/06 by Item 10.1.1 and then dividing by 4  Trustee honorarium allocation for Dec to Aug 2007 is calculated at items 10.2 to 10.6.  The total trustee honorarium allocation for 2006-07 is reported at item 10.7

8. Transfer Payment and Financial Reporting Branch Ministry of Education 8 Administration & Governance Allocation  Section has been revised to incorporate funding for student trustees honoraria and expenses  Board can elect up to 3 student trustees and enter the number of student trustees at item 10.9  The calculation is based on the sum of days each student trustee has held office. The number of days is to be entered at item 10.9.1. (e.g. 2 student trustees held office for the whole year enter 2 x 365 days)

9. Transfer Payment and Financial Reporting Branch Ministry of Education 9 Section 11 – Pupil Accommodation Allocation  New initiative to provide long-term financing through OFA for construction costs incurred by school board.  Funding calculation has been changed for the following capital programs.  Prohibitive to Repair  Primary Class Size Capital  Growth Schools  Capital Transitional Adjustments

10. Transfer Payment and Financial Reporting Branch Ministry of Education 10 Section 11 – NPP allocation  Timing of entitlement data is preloaded from SFIS  The data will be updated daily until November 1, 2007  If a board is satisfied with the timing of entitlement data before November 1, 2007, it should request a lock out of the data by informing Mark Bonham of the Ministry. (mark.bonham@ontario.ca or 416-325-8571)

11. Transfer Payment and Financial Reporting Branch Ministry of Education 11 Section 11 – NPP allocation Page 3  Debt servicing cost now includes costs related to debt on projects that were committed prior to August 31, 2006 but the debt was incurred after that date.  POD reserves are reported at item 11.35.9 in two columns. ( 100K)  Proceeds of Disposition used for the committed debt adjustment are calculated at item 11.35.11. The adjustment takes into account 50% of amounts reported at item 11.35.9 that are each =>100K less amounts incurred or committed by the board to purchase leased facilities or to purchase facilities to replace leased facilities in 2006/07

12. Transfer Payment and Financial Reporting Branch Ministry of Education 12 Section 11 – NPP allocation Page 3  At items 11.35.5 to 11.35.7 the calculation is adjusted for enrolment pressures entitlement that have not yet been constructed and reported under the timing of entitlement calculations  Input required at item 11.35.17 to report the reserves that are required to meet future debt servicing costs of capital debt committed prior to June 12, 2006. Any enrolment pressure grants (or part thereof) provided in prior years and still unused is to be reported here.

13. Transfer Payment and Financial Reporting Branch Ministry of Education 13 Section 11 – NPP allocation Page 3  Item 11.35.15.1 - the protected amount in pupil accommodation reserve for prohibitive to repair projects not tendered by March 31, 2006 is preloaded from Col. 6, Table 16.3 of 2006/07 Grant reg.  Item 11.35.15.2 - the protected amount in pupil accommodation reserve for Capital Transitional projects not tendered by March 31, 2006 is preloaded from Col. 7, Table 16.1 of 2006-07 Grant reg.

14. Transfer Payment and Financial Reporting Branch Ministry of Education 14 Section 11 – Growth Schools  Approved pupil places are pre-loaded under items 11.36.1 and 11.36.2  The pupil places approved for growth schools are converted into a construction cost entitlement at items 11.36.4 and 11.36.5  This amount is adjusted by available capital reserves at item 11.36.6 to determine the maximum that will be long term financed through the OFA

15. Transfer Payment and Financial Reporting Branch Ministry of Education 15 Section 11 – Growth Schools  Actual construction costs to be input at item 11.36.8  Amount financed is the lower of actual construction costs and the maximum growth schools entitlement  Long term financing arrangements will be made after 2006/07. Internal borrowing costs are calculated at items 11.36.10 to 11.36.12 using the 3-months BA rate at Sept 2006. Actual external short term borrowing costs are input at item 11.36.13

16. Transfer Payment and Financial Reporting Branch Ministry of Education 16 Section 11 – Primary Class Size Reduction  Form revised to determine the cost of PCS capital expenditures that are available for OFA long term financing  PCS costs are net of any construction costs that the board has already long term financed  Short term internal and external borrowing costs are calculated at items 11.41.1 through 11.41.4 using an approach similar to Growth schools  Construction costs already long term financed are funded at an annualized payment using 25 years amortization and 5.25%

17. Transfer Payment and Financial Reporting Branch Ministry of Education 17 Section 11 – Primary Class Size Reduction  The 2005/06 PCS allocation net of leasing and relocation cost is preloaded at item 11.41.10 based on 2005/06 Financial Statements  2005/06 principal and interest cost for the long term financed portion of the approved 2005/06 cost for portable purchase and permanent PCS construction is to be input at item 11.41.11  An adjustment is made to the PCS allocation for the difference between the amounts calculated at items 11.41.10 and 11.41.11.

18. Transfer Payment and Financial Reporting Branch Ministry of Education 18 Section 11 – Best Start  Introduced in this year  Approved spaces preloaded at item 11.60.1  Capital funding will be based on the lower of construction costs and the best start construction entitlement  Annual grant for the program is calculated on the capital funding amortized over 25 years at 5.25%

19. Transfer Payment and Financial Reporting Branch Ministry of Education 19 Section 11 -Capital Transitional Adjustment and PTR  Both to be financed through the OFA long term financing vehicle after 2006/07  Approved pupil places for Capital Transitional Adj. are reflected in Table 16.1 columns 4 and 5  Approved construction costs for PTR are reflected in Table 16.3 column 6  Internal and external financing costs are calculated using a similar approach to Growth Schools

20. Transfer Payment and Financial Reporting Branch Ministry of Education 20 Section 12 – Debt Charge Allocation  NPP debt is now segregated Long term debt information related to NPP projects is reported at items 12.31.1 and 12.31.2 and Eligible Not Permanently Financed Debt is reported at items 12.32.1 and 12.32.2. Both are segregated between debt committed before Sept 1, 2006 and debt committed on or after Sept 1, 2006.  Separate reporting of debt committed before, on or after September 1, 2006 is no longer required for PCS and Growth Schools.

21. Transfer Payment and Financial Reporting Branch Ministry of Education 21 Section 12 – Debt Charge Allocation  Boards are required to report their short term borrowing costs for GPL projects at line 12.17.1. Interest costs are picked up from schedule 3A.  New line 12.21.1 for reporting Permanently financed GPL Loans

22. Transfer Payment and Financial Reporting Branch Ministry of Education 22 Schedule 3 – Capital Fund, Expenditure & Financing  Two new columns have been added to report tangible and non-tangible capital assets  Summary Table has been revised and expenditures are now classified as:  Buildings (40 years)  Portables  Buildings (20 years)  Land  Land improvements  Construction in Progress (CIP)  Pre-acquisition and Pre-construction

23. Transfer Payment and Financial Reporting Branch Ministry of Education 23 Schedule 10 & 10 ADJ – Operating Expenditures  NEW Line 76 has been added under Pupil Accommodation to report expenditures related to Growth Schools,PCS and Capital Transitional Adjustments  Best Start expenditures are to be reported on Line 72 with NPP

24. Transfer Payment and Financial Reporting Branch Ministry of Education 24 Schedule 10.4 – Supplementary Information - EXPANDED  The schedule has been expanded to report information for both the elementary and secondary panels

25. Transfer Payment and Financial Reporting Branch Ministry of Education 25 Schedule 10F – Employee Benefits REINTRODUCED and NEW FORMAT  Boards are to estimate the breakdown of employee benefits, reported on Schedule 10, by type of benefit

26. Transfer Payment and Financial Reporting Branch Ministry of Education 26 Schedule 21E – Deferred Revenue DELETED  This schedule has now been removed

27. Transfer Payment and Financial Reporting Branch Ministry of Education 27 Schedule 21H – Future Debt Payment NEW SCHEDULE  Report principal and interest payments on debentures, capital lease payments and sinking fund contributions  Reporting should be consistent with the disclosure in the notes to the Financial Statements

28. Transfer Payment and Financial Reporting Branch Ministry of Education 28 Common Errors in Submissions  Incomplete submission package  Published Financial Statements – No Management Report  Differences between information reported in EFIS and the audited Financial Statements  Section 2 – Technician Amount not Reported  Data A.3 – Opening Balance not Reported  F/S submission have not been corrected to reflect prior errors noted in Finance Officer Reviews

29. Transfer Payment and Financial Reporting Branch Ministry of Education 29 Incomplete Submission Package  A complete submission includes:  Two (2) signed copies of Schedules 1, 1.1, and 1.2, and Section 1, printed from the active EFIS submission  Two (2) hard copies of the audited financial statements with the auditors report, notes and Management Report  An electronic copy of Capital Activities Report to the following mailbox: reporting.entity@ontario.ca  One (1) hard copy of the Capital Activities Report and Specified Procedures Report  Active EFIS file  Electronic copy of Appendix C to the following mailbox: financials.edu@ontario.ca

30. Transfer Payment and Financial Reporting Branch Ministry of Education 30 Published Financial Statements – No Management Report  Boards are required to publish their audited financial statements and annual report – Education Act s 252(2)  Per 1700.38 -.39 in PSAB, a complete set of financial statements includes the signed report on Management’s Responsibility for the Financial Statements.  Boards are required to send an electronic copy of the published FS, notes, auditors report and Board Annual Report as published to their Ministry Finance Officer

31. Transfer Payment and Financial Reporting Branch Ministry of Education 31 Differences between Information reported in EFIS and the Audited Financial Statements  Boards must submit annual financial forms (Ministry Forms) to the Ministry in addition to publishing their audited financial statements.  These forms are designed in accordance with PSAB recommendations and to provide reconciliations that comply with the funding requirements of the Education Act.  Except for presentation, the figures in the Ministry Forms must correspond with the audited financial statements.

32. Transfer Payment and Financial Reporting Branch Ministry of Education 32 Section 2 – Technician Amount not Reported  The allocation for SEA Technicians is calculated on the Technician Worksheet of each board’s Excel SEA claim (TAB 2)  The SEA Technician reimbursement is to be combined with the Special Education Equipment approval at item 2.2 of Section 2  The board enrolment reported in Column 1 of the Technician Worksheet should reflect the October 31 FTE and agree with the confirmed enrolment (does not include pupils 21 and over or “other pupils”)

33. Transfer Payment and Financial Reporting Branch Ministry of Education 33 Data A.3 – Opening Balance Accumulated Eligible Expenditures not Reported  Opening balance for Deferred Revenue/Accumulated Eligible Expenditures must be reported at item 1.0  Potential to create artificial Deferred Revenue on Schedule 5.1 if board has Accumulated Eligible Expenditure and amount is not reported at item 1.0  Example: 10,000,000 opening balance Accumulated Eligible Expenditure not reported on line 1.0. Current Allocation is 2,000,000 and Expenditures 1,000,000. 1,000,000 of deferred revenue created on Schedule 5.1 in error

34. Transfer Payment and Financial Reporting Branch Ministry of Education 34 F/S have not been corrected to reflect prior errors noted in FO Reviews  Self Explanatory  Errors noted by Ministry Finance Officers during Estimate and Revised Estimate reviews should be corrected in the F/S submission

35. Transfer Payment and Financial Reporting Branch Ministry of Education 35 Questions ?????