Transcript Slide 1

PUT TITLE HERE
2007-08 Financial Statement Update
Information session for School Board Finance Staff
and External Auditors
Transfer Payments and Financial Reporting Branch
Fall 2008
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Topics to be discussed
• 2007-08 Financial Statement Changes
• Common Errors noted during Financial
Statement
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Changes from 2007-08 Revised Estimates
• Warnings: Excel report under EFIS Report module
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Interest Earned on Prefinanced Debenture Proceeds
Schedule 3: Capital Fund – Expenditure & Financing
Schedule 3A: Good Places to Learn (GPL)
Schedule 3B: Capital Asset Expenditures
Schedule 3C: Tangible Capital Assets Continuity Schedule
• Schedule 9: Operating Fund Revenues
• Section 9: Transportation Allocation
• Section 11: Capital Programs
• Section 12: Debt Charge Allocation
• Data Form E: Expenditure and Revenue by Program
• Appendix H: Staffing
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Warnings – Excel report
• EFIS Report module creates a new Excel report
that boards are now required to use to provide
explanations for warning messages.
• The completed Excel report is required as part of
the board’s submission to the Ministry and an
electronic copy of this report shall be sent to the
following mailbox: [email protected]
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Interest Earned on Pre-financed Capital
• Some Debenture proceeds have been raised to
finance future building projects.
 Interest earned on investment of these debenture
proceeds must be transferred to the internally
restricted capital reserve.
 Proceeds of the debenture and any interest earned
on that prefinancing are both applied to future capital
projects or the future debt servicing costs of the
projects.
• The amount of pre-financing is reported in the
appropriate areas on Schedules 3 and 5
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Schedule 3 – Capital Fund, Expenditure &
Financing
• Same as form used in 2006-07 Financial
Statements
 Two columns added to report tangible and nontangible capital assets
 Summary Table
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Schedule 3A – Good Places to Learn
• Provides for reporting GPL Stage 3 projects
• Sep 4, 2007 3-month BA rate is 4.94286 (item 1.4)
• External short term borrowing now recognizes interest
up to 3 months BA +20 basis points (item 2.1)
• OFA long term financing of GPL expenditures preloaded
at items
 1.2.1 (Nov/06 issue) and
 1.2.1a (Mar/08 issue)
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Schedule 3B – Capital Asset Expenditures
• Schedule removed as a result of revisions made
in Schedule 3.
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Schedule 3C – TCA Continuity Schedule
(new schedule)
• PS 3150 is to be fully implemented in 2008-09
school year
• School boards required to disclose information
on Tangible Capital Assets (TCA) in Notes to
Financial Statements to the extent of reliable
information.
• Schedule supports this note disclosure
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Schedule 9 – Operating Fund Revenues
Other Revenue
• Item 5.1 added in Other Revenue to record payments
received from Gov’t of Ontario that is not grant related.
 Example: salary recovery for employees on secondment to the
government.
Grants from Other Ministries
• Item 8.2.5: is used for reporting funding under LMDA
(Labour Market Development Agreement)
• renamed EBSM (Ontario Employment Benefits and
Support Measures)
 Agreement is between Province and Gov’t of Canada and took
effect Jan 1, 2007
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Section 9 – Transportation Allocation
• The results of the Effectiveness & Efficiency
reviews and study costs on transportation are
included as part of the 2007-08 transportation
funding at item 9.7.
• Refer to Table 9.1 in the 2007-08 Grant
Regulations for board specific amounts.
(http://www.e-laws.gov.on.ca)
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Section 11 – NPP allocation
• Timing of entitlement data for NPP is preloaded
from SFIS
• The data will be updated daily until the cut-off
date of October 15, 2008
• If a board is satisfied with the timing of
entitlement data before October 15, 2008, it
should request a lock out of the data by
informing Mark Bonham of the Ministry.
([email protected] or 416-325-8571)
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Section 11 – NPP allocation Pages 1 & 2
• Costs of relocating portables now recognized as
part of Timing of Entitlement costs – see items
11.31.8.2 and 11.34.8.2
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Section 11 – NPP allocation Page 3
• The calculation of committed debt servicing cost
includes
 NPP capital debt for NPP project costs pre Aug 31/06
 Interest costs related to debt on projects that were
committed prior to Aug 31/06 but the debt was incurred
after that date.
…cont’d
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Section 11 – NPP allocation Page 3 (cont’d)
Revisions to Calculation of Committed Debt servicing
cost include:
 Enrolment pressure adjustment (11.35.5 to 7) – provides for pupil
places relating to 2005 Capital Policy Adjustment entitlement not yet
constructed and reported under timing of entitlement.
 Debt servicing costs for committed debt (11.35.8 to 11.35.8.4) – for a
school leased on or before Aug 31/06 and replaced by a school with
long term debt, the debt servicing costs are recognized. (Note: sum
of debt cost and current lease payments not to exceed 2006-07 lease
payments.
 Unused enrolment pressure grants are not included in reserves
adjustment. Board to report unused EP grants that is part of Aug
31/06 capital reserves (line 11.35.22).
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Section 11 – NPP allocation Page 3
(cont’d)
• POD reserves used in determining adjustment to capital
debt commitment includes:
 POD relating to schools that are prohibitive to repair
 Other proceeds of disposition
 Item 11.35.9 and 11.35.10 now used to report <100K and
=>100K (formatting is different than last year)
• Debt servicing costs used for calculation of capital debt
commitment assistance (Item 11.35.8) must:
 Agree with Capital Liquidity Template (note that ministry will
adjust at 11.35.8A during review of F/S), and
 Agree to information reported in Section 12
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Section 11 – Growth Schools
• Growth schools funding calculation has been
changed
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Table amount from Grant Regulation now used at
11.36.1
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Previous calculation used pupil places multiplied by
benchmarks
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Section 11
• PTR, PCS Capital, Growth Schools, Capital
Transitional Adjustment Programs (French
language boards)
 Short term interest recognize for funding is limited to
higher of actual interest and 3 month BA rate + 20bp
 The OFA long term financed portion of the program
expenditures and corresponding P+I are preloaded in
the forms.
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Section 12 – Debt Charges Allocation
• OFA loan issued in March 2008 pre-loaded at 12.12.2.
• Debt servicing costs for replacing schools leased on or
before Aug31/06 reported at 12.31.2 as “Post
September 2006 debt” (Now recognized in committed
debt provision in NPP allocation).
• Amounts reported as “Not permanently financed”
includes amounts funded by internal borrowing from
other funds and short term external borrowing, but only
report interest on external borrowing.
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Section 12 – Debt Charges Allocation
(cont’d)
• Where long term debt issued includes:
 Permanent financing of NPF debt, and
 Pre-financing of capital needs
• Only report the amount of the debenture issue
relating to NPF debt as retirement of the NPF debt
in column 2.
• In Permanently Financed section of Debt issue
boards report the entire debenture issue including
the pre-financed portion.
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Data Form E – Expenditure and revenue
by program
• Some cells are opened across programs for
board input:
 Directors/Supervisory Officers
 Board Administration
 Supporting schedule – Additional Support for
Students includes:
 Parent Involvement (col 30)
 Community Use of Schools (col 31)
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Appendix H – Staffing
• New line for Child and Youth Workers (CYW).
 Excludes any CYWs hired as Teaching Assistants.
 Includes CYWs hired under Safe Schools initiative.
• New line for Library Technicians:
 Implements accountability for new library staffing
funding provided to school boards.
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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
• Section 10 – Student Trustee Calculation
• Data A.3 – Opening Balance not Reported
• F/S have not been corrected to reflect prior errors noted
in FO Reviews
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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’ and management reports and notes, a hard copy of the
warning message explanation report from EFIS-Reports module
 Active EFIS file
 Electronic copy of Appendix C to the following mailbox:
[email protected]
 Electronic copy of Excel report on explanation of Warnings to the
following mailbox: [email protected]
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Published Financial Statements – No
Management Report
• Boards are required to publish their audited financial
statements and annual report – Education Act s 252(2)
• PSAB s.1700.38 -.39: a complete set of financial
statements includes the signed report on
“Management’s Responsibility for the Financial
Statements”.
• Boards required to send an electronic copy of published
FS, notes, Auditors’ Report, Management Report and
Board Annual Report, as published, to the Ministry.
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Information reported in EFIS differs from
Audited Financial Statements
• The Ministry 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.
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Section 10 – Student Trustee Calculation
• 10.9.1 is for the cumulative number of days in
office for ALL student trustees.
• Check the outcome of the math at 10.9.2 to
ensure board is properly compensated for
student trustees.
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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
 Use the closing balance from the final FO version of
previous year’s Financials so that adjustments are
accounted for.
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F/S have not been corrected to reflect
prior errors noted in FO Reviews
• Errors noted by Ministry Finance Officers during
Estimate and Revised Estimate reviews should
be corrected in the F/S submission
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Contact Information
• Finance Officer [email protected]
SANJAY CHITAPAIN
JANE COLLINS
DAVID CORKETT
CHERYL DALRYMPLE
GREG FIORIDO
VINOD GUREWAN
TIM KIELMAN
BRENDA SHAW
LISA TARINI2
DAVID WRIGHT2
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Questions
?????
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