Enrolment/ESL presentation

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2011-12 Financial Statements Changes
Information Session for School Boards and
External Auditors Financial Analysis and
Accountability Branch Fall 2012
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• Employee future benefit plan changes, New Sick
  Day plan and Regulatory Amendments

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Agenda

• Employee future benefits background
• Provisions in Memorandum of Understanding
• Changes to Employee future benefits
• New Sick Day Plan
• Impact of Plan Changes
• Accounting for Plan Changes
• Impact to 2011-12 Financial Statements
• Impact to 2012-13 Revised Estimates
• Regulatory Changes
• Legislation

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Employee Future Benefits Background

• Retirement Gratuity liability (vested sick days)
  represents the accumulated sick days that are
  paid out as a lump-sum to an employee upon
  retirement
• Post Employment/compensated absences liability
  consists mainly of accumulated (non-vested) sick
  days for use as future paid sick leave
• Retirement Gratuity Plans vary across boards
• Some boards have a minimum years of service
  requirement
• Some boards have payouts which vary from 35 -
  50
• Some boards have capped payout amounts
• Boards vary in the maximum number of allowable
  accumulated days

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Retirement Gratuity Plans

• The most common type of Retirement Gratuity Plan
  offered is
• 20 or 24 sick days per year with any unused days
  accumulated up to a maximum number (200 or 260
  days in many plans), of which 50 may be paid out
  at retirement (equivalent to half a salary at
  retirement)
• Some boards have closed their retirement gratuity
  plans by limiting them to employees hired before
  a certain date and have offered new employees
  other benefits in lieu (hybrid plans)
• Some boards offer yearly lump-sum payments based
  on the number of unused sick days which can be
  contributed to an RRSP
• Other boards offer a payout for each day over and
  above a maximum number of accumulated days
• Provisions in the Memorandum of Understanding
  apply to all forms of retirement gratuities all
  forms of retirement gratuities will cease

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Retirement Gratuity Plans Contd

• Approximately 40 of boards currently have open
  plans (retirement gratuity available to all
  employees), while most others have closed or
  hybrid plans (grandfathered plan to employees
  hired before a certain date and new reduced
  provision for newer employees)
• For boards with open plans, future benefit
  expenses have continued to increase every year as
  new teachers enter the plan
• The liabilities for boards with open plan have
  been increasing at a more rapid pace than those
  boards with closed or hybrid plans
• Currently, boards have few reserves set aside to
  provide for future cash payout of retirement
  gratuities

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Retirement - Health, Life and Dental benefits

• Represent benefits for retirees up to the age of
  65
• Incidence rates for retirees are higher creating
  higher premium rates than those for active
  employees
• However, many collective agreements allow
  retirees to continue paying the premium rate of
  an active employee
• For many boards, retirees are included in the
  same experience pool as active employees for
  health, life and dental benefits and therefore,
  benefit from a lower premium rate than they
  otherwise would have paid if they were in a
  separate experience pool
• Some boards also partially fund the premium paid
  by retirees
• The structure of these plans has created an
  unfunded liability for the Ministry that is
  growing at approximately 25M per year
• Variation in degree of benefits provided across
  boards

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Memorandum of Understanding (MOU)

• Ontario English Catholic Teachers Association
  (OECTA), Association des enseignantes et des
  enseignants franco-ontariens (AEFO), Association
  of Professional Student Services Personnel
  (APSSP), Education Assistants and the Ministry of
  Education negotiated a new collective agreement
  that outlines new provisions related to employee
  future benefits
• Changes to retirement gratuities plan
• Eliminates non-vested sick days
• Provides for a new short-term sick leave plan
• Restricts current health/dental/life benefits
  received after retirement to existing retirees
  and to new retirements in 2012-13
• Changes will significantly reduce boards
  unfunded liabilities and related expenses
• Result in one-time savings for boards and
  on-going savings

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Highlights of MOU

• Retirement Gratuity and Non-vested sick days
• Effective August 31, 2012, employees currently
  eligible for a retirement gratuity shall have
  accumulated sick days vested, up to the maximum
  eligible under the retirement gratuity plan
• Upon retirement, employees eligible for
  retirement gratuity as at August 31, 2012 shall
  receive payout based on employees current
  accumulated vested days (up to maximum eligible
  amount under plan) and years of service and
  salary at that date.
• Effective September 1, 2012, all accumulated
  non-vested sick days shall be eliminated

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Highlights of MOU

• Short-term sick leave and disability plan (STLDP)
• Employee shall be paid 100 of regular salary for
  up to 10 non-accumulating days of absence due to
  illness and
• shall be entitled up to an additional 120 days
  short term sick leave paid at 66.67 of regular
  salary and
• be eligible for 90 of regular salary (short-term
  leave and disability plan) in accordance with the
  provisions in MOU
• An employee is eligible for STLDP under the
  following conditions (subject to third party
  adjudication process)
• All, or any part of, an absence of 5 consecutive
  work days, occurs beyond the 10 sick leave days
  paid at 100
• An absence of any duration beyond 10 sick leave
  days paid at 100 salary due to an ongoing or
  intermittent medical condition, such as recurring
  illness or any form of chronic condition

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Short-term sick leave plan - Examples

• Example 1 An employee has used 10 sick days
  paid at 100 and requires an additional 2
  consecutive or non-consecutive days off
• - The employee would be paid 66.67 for
  the 2 additional days
• Example 2 An employee has used 10 sick days paid
  at 100 and takes an additional 7
  consecutive days off
• - The employee would be paid 90 for the 7
  additional days - subject to 3rd party
  adjudication
• Example 3 An employee has used 10 sick days paid
  at 100 and takes an additional 5
  non-consecutive days off due to an on-going
  illness
• - The employee would be paid 90 for the 5
  additional days subject to 3rd
  party adjudication

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Highlights of MOU

• Benefits After Retirement for Health, Life and
  Dental
• As of September 1, 2013 any new retiree who has
  access to health/life/dental benefits and pays
  premiums for such benefits shall be included in
  an experience pool segregated from all active
  employees, such that the pool is self-funded.
• As of September 1, 2013, no new retirees shall be
  eligible for employer contributions to any
  post-retirement benefits (retiree pays 100 of
  premium).
• Existing retirees and any employee retiring
  before September 1, 2013 will continue to be
  included in the experience pool in which they are
  presently included and pay appropriate premiums.
  Employer contributions where they exist will
  continue.

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Highlights of MOU

• WSIB and Maternity Leave
• WSIB benefits shall be maintained in accordance
  with 2008-2012 local collective agreement. Where
  the WSIB top-up is deducted from sick leave, the
  board shall maintain same level of top-up without
  deduction from sick leave.
• WSIB liability is expected to increase for those
  boards that have top-up arrangement in place.
• For those boards who are not self-insured for
  WSIB (Schedule 1 employer) and therefore did not
  report a liability before, will now report a
  liability for the top-up portion.
• The level of top-up provided to an employee will
  be based on provisions in previously negotiated
  collective agreement
• For employees who have run out of sick days,
  top-up re-instated Sept 1st
• Employees shall receive 100 of salary for not
  less than a 6 week period following the birth of
  a child.

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Accounting Treatment for Retirement Gratuity

• Actuarial assumptions used in valuing the
  retirement gratuity obligation prior to the plan
  change included future salary escalation and the
  future banking and usage of sick days and future
  increases in payout factor based on service
• With the current plan change, future payout is
  frozen at August 31, 2012 salary, further
  accumulation and usage of banked sick days is
  eliminated, and employees years of service is
  recognized as of August 31, 2012
• As a result of the plan changes, most boards will
  experience a one-time change to their obligation
  and future years expenses
• Most boards will experience a reduction to their
  obligation and expenses, few boards may
  experience an increase
• The degree to which the obligation and expenses
  change will depend on whether boards have open or
  closed plans and on the parameters of the plan
  that existed before the change (ie. capped
  payouts, eligibility criteria, etc..)
• Future services of employees will no longer
  qualify for benefits and therefore changes to the
  plan will be deemed a plan curtailment

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Accounting Treatment for Retirement Gratuity

• PSAB 3250.075 defines a plan curtailment as an
  event that significantly reduces the expected
  years of future service of present employees, or
  eliminates the accrual of defined benefits for
  some or all of their future services
• As a result of the plan changes, boards will
  report a curtailment gain or loss
• This will impact how existing unamortized
  actuarial gains/losses are recognized
• PSAB handbook section 3250.078 states gains and
  losses determined upon a plan curtailment should
  be accounted for in the period of curtailment
• Therefore, all existing unamortized gains and
  losses prior to the plan change should be
  recognized when determining a curtailment gain or
  loss
• Actuaries will provide the calculated curtailment
  gain/loss and new liability to school boards
• If boards in consultation with auditors disagree
  with approach, they should call the ministry for
  further discussion

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Accounting treatment for Retirement Health, Life
and Dental

• With the current plan change, most employees who
  were once eligible to pay the blended
  employees health and dental premium rate upon
  retirement and/or receive further subsidization
  of premiums from the board when retired, are no
  longer eligible
• As a result of the plan changes, most boards will
  experience a one-time change to their obligation
  and future years expenses
• The degree to which the obligation and expenses
  change will depend on demographics, the
  parameters of the plan that existed before the
  change, etc..
• As there is a significant reduction in the number
  of employees who can now qualify for these
  benefits, this change will be deemed a plan
  curtailment
• Only those who are currently retired or will
  retire on or before August 31, 2013 can qualify
  for these benefits

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Example of curtailment gain calculation

• Board A
• Accrued benefit obligation (ABO) before plan
  change 1,500,000
• Unamortized actuarial losses
  200,000
• Liability before plan change
  1,300,000
• ABO after plan change 700,000
• Reduction in ABO (gain) ( 800,000)
• Reduced by unamortized act. losses
  200,000
• Total curtailment gain to be reported (
  600,000)
• Liability after plan change
  700,000
• Entry
• Dr. Liability 600,000
• Cr. Curtailment Gain 600,000

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Impact to 2011-12 Financial Statements

• The impact of plan changes for retirement
  gratuity and retirement health, life and dental
  changes will come into effect August 31, 2012,
  and will need to be reflected in the 2011-12
  financial statements
• The following changes will occur
• One-time reduction to boards closing retirement
  gratuity and health, life and dental obligation
  will be disclosed in 2011-12
• This will result in one-time savings to the board
  which will remain out of compliance in 2011-12
• The impact of plan changes for non-vested sick
  days will come into effect September 1, 2012,
  however, the liability will be eliminated for
  2011-12 Financial Statements and the gain
  reported out of compliance
• Note(s) will be required disclosing the changes
  made to employee future benefit plans and its
  impact, as well as the date legislation was
  passed
• For reporting purposes, the Ministry advises
  boards to have an actuarial valuation done as at
  August 31, 2012 based on the provisions agreed
  upon in the MOU even though some boards are not
  scheduled for review

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Impact to 2012-13 Revised Estimates

• Reporting for Compliance Purposes
• 2012-13 Estimates included the phase-in of the
  difference between cash and PSAB expense for
  Retirement Health, Life and Dental, however, this
  will change for 2012-13 Revised Estimates
• 2012-13 Revised Estimates will now include the
  full PSAB expense and the phase-in of the
  Retirement Health, Life and Dental liability over
  a maximum of 10 years
• Boards will still be required to phase into
  compliance the gap between PSAB expense and cash
  for all other employee future benefits (Long-term
  disability, WSIB and other) within the next four
  years
• This change will help contain the rate at which
  the unfunded portion of these liabilities
  increase over time
• The opening liability for all other employee
  future benefits (LTD, WSIB) will remain out of
  compliance.
• 2011-12 full actuarial evaluation should be used
  to prepare the Revised Estimates

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Impact to 2012-13
Previous Treatment New Treatment
Benefits liabilities were excluded from budget compliance. Retirement gratuity liability(1) will be phased-in over boards EARSL. Retirement Health, Life and Dental liability will be phased-in over a maximum of 10 years. Other benefits liabilities (ie. WSIB, LTD) remain excluded from compliance.
Benefits cash expenditures recorded for compliance, plus benefit enhancements. Budget compliance now based on PSAB expense for retirement gratuities and retiree benefits Other benefits difference between cash and PSAB expense phased in over 4 years. Expense should be lower than in the past due to the proposed changes.
GSN benefits benchmark included 2 for retirement gratuities. The 2 will be phased-out over the provincial EARSL of 12 years.
(1) Cash expenditure in the past included
pay-out for people that retired that year.
Boards will now manage their PSAB expense and the
phase-in of their retirement gratuity liability.
Conceptually, over EARSL these two approaches
would add to the same amount.
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Example - Phasing in Retirement
Gratuity/Retirement Health, life and dental
liability for 2012-13

• A

Retirement Gratuity liability after plan change (opening balance for 2012-13) 1,500,000
PSAB expense (after plan change) 100,000
Cash expense 150,000
EARSL (estimated average remaining service life) years

• For 2012-13 Revised Estimates, 100,000 would
  be reported on schedule 10 representing the in
  year PSAB expense, and 100,000 would be reported
  on Schedule 10 ADJ to include the amortization of
  the retirement gratuity over a period of 15
  years.
• In previous years, only 150,000 would have
  been reported in compliance on Schedule 5.
• For 2012-13, 200,000 will now be reported in
  compliance on Schedule 5.
• This method should also be applied to
  Retirement Health, Life and Dental liability.

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Multi-year example of Retirement Gratuity Phase-in
Before plan change After plan change
Liability 5,000,000 2,000,000
PSAB Expense 500,000 100,000
Cash 310,000 310,000
Year 1 Year 2 Year 3 Year 4 Year 5
Amortization (1) 200,000 200,000 200,000 200,000 200,000
PSAB exp 100,000 90,000 80,000 70,000 60,000
Cash 310,000 300,000 290,000 250,000 240,000
Compliance 300,000 290,000 280,000 270,000 260,000
(1) Assumes EARSL of 10 years
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4 Year phase-in of Other Employee Future Benefits
2012-13 Revised Estimates
LTD/WSIB/Other Year 1 Year 2 Year 3 Year 4
Liability 500,000 525,000 555,000 590,000
Cash 25,000 30,000 20,000 20,000
Expense 50,000 60,000 55,000 60,000

Previous Treatment included in compliance 25,000 30,000 20,000 20,000

New Treatment Phase-in 25 50 75 100
Gap to be phased in 6,250 15,000 26,250 40,000
Cash 25,000 30,000 20,000 20,000
Total to be included in compliance 2012-13 31,250 45,000 46,250 60,000
Note For 2012-13 Estimates, this method was used
to phase in the Retirement Health, Life and
Dental benefits. For 2012-13 Revised Estimates,
boards should report the full PSAB expense and
phase-in the liability over 10 years for retiree
benefits.
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Schedule 10 and 10ADJ 2012-13 Revised Estimates-
4 Year phase-in
LTD/WSIB/Other Year 1 Year 2 Year 3 Year 4
Liability 500,000 525,000 555,000 595,000
Cash 25,000 30,000 20,000 20,000
Expense 50,000 60,000 55,000 60,000

Schedule 10 (1) 50,000 60,000 55,000 60,000
In year gap 25,000 30,000 35,000
75 50 25 100
Schedule 10ADJ (2) (18,750) (15,000) (8,750) 0
Total to be included in compliance 2012-13 (1) (2) 31,250 45,000 46,250 60,000
Note For 2012-13 Estimates, this method was used
to phase in the Retirement Health, Life and
Dental benefits. For 2012-13 Revised Estimates,
boards should report the full PSAB expense and
phase-in the liability over 10 years for retiree
benefits.
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Regulatory Amendments

• Amendments will be made to Education Act
  beginning September 1, 2012 to reflect changes in
  the new Memorandum of Understanding
• O. Reg. 488/10 Determination of Boards
  Surpluses and Deficits
• amended to reflect the impact of the changes in
  retirement gratuity and retiree benefits
• and
• O. Reg. 193/10 Restricted Purpose Revenues
• amended to reflect provision in MOU which
  requires approval of the Minister of Education on
  any withdrawal of monies by school boards from
  any health care benefit plan reserves, surpluses
  or deposits

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Impact of changes Reg. 488/10

• Beginning September 1, 2012
• Changes to Reg. 488/10 will require boards to
  manage their in-year PSAB expense and phase-in
  their unfunded liabilities for retirement
  gratuity over the boards EARSL in accordance
  with the approach used in 2012 Estimates
• Ministry is also amending the same regulation to
  allow school boards to manage unfunded retirement
  gratuity liabilities over a shorter period than
  the boards EARSL
• Changes to Reg. 488/10 will also require boards
  to manage their in-year PSAB expense and phase-in
  their unfunded liabilities for retirement
  health/dental/life benefits for a period up to 10
  years
• Changes will require boards to phase-in the gap
  between their PSAB expense and cash for other
  employee benefits (excluding retirement gratuity
  and health, life and dental benefits) over a
  period of 4 years

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Impact of changes Reg. 193/10

• Currently, some boards may be running surpluses
  on their self-funded insurance plans (ie. health,
  life and dental). Surpluses arise from a board
  paying more in premiums than in claims and
  administrative costs for health care benefits in
  any one year
• Given existing provisions in the MOU, boards will
  now be required to request Ministry approval if
  they choose to withdraw money from a health care
  benefit plan surplus or reserve
• Amendment to Reg. 193/10 will restrict
  application/use of surpluses refunded to the
  board for the purpose of providing insurance or
  services under subsection 177 (1) of the Act
• Boards must request approval from the Ministry if
  they want to use such surpluses for purposes
  other than for providing insurance for employees
• Approval form and SB memo will be issued shortly

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Legislation

• Bill 115 - Putting Student First Act, 2012
• Establishes a restraint period of 2 years
  beginning September 1, 2012
• Sets out requirements for terms to be included in
  the employment contracts and collective
  agreements
• Collective agreements must include terms that
  reflect the MOU or the terms of other negotiated
  collective agreements
• For employees who do not bargain collectively,
  provisions in the current MOU will apply
• No further accumulation of sick days and a sick
  banks will be frozen
• Payout of retirement gratuity will be based on
  teachers salary and accumulated sick days as at
  August 31, 2012
• Non vested sick days will be eliminated
• New sick day plan (10 non-accumulated sick days
  at 100 pay, remaining at 66.67 pay or 90 pay
  where STDLP applies)
• Health, life and dental post-retirement benefits
  will be grandfathered

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• Questions?

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2011-12 Audit Report and Notes to the Financial
Statements
Financial Analysis and Accountability Branch
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Summary of Changes

• Audit Report
• Management Report
• Note 1 Significant Accounting Policy
• Note 2 Change of Accounting Policy
• Note 6 Deferred Capital Contribution
• Note 7 Retirement and Other Employee Future
  Benefit
• Note 20 Budget Data
• Note 21 Subsequent Event

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Audit Report

• After the 2010-11 Financial Statements were
  prepared, Ontario Regulation 395/11 (Financial
  Administration Act, Accounting Policies and
  Practices) came into effect.
• This regulation gives specific direction on how
  to account for deferred capital contributions
  (DCC).
• Reporting framework last year PSAB and Ministry
  of Education direction Special purpose fair
  presentation
• Reporting framework this year PSAB with the
  exception of revenue recognition for capital
  contributions (Reg 395/11) General purpose
  compliance presentation
• Emphasis of Matter paragraph will be
  incorporated, drawing users attention to the
  additional disclosure
• Will no longer include the phrases present
  fairly, in all material respects or fair
  presentation

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Management Report

• Updated Management Report to indicate financial
  statements have been prepared in accordance with
  the financial provisions of the Financial
  Administration Act, Ontario Ministry of Education
  memorandum 2004B2 and the accounting
  requirements of Ontario Regulation 395/11of the
  Financial Administration Act

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Note 1 Significant Accounting Policy

• Basis of Accounting Note 1 (a)
• Prepared in accordance with the financial
  reporting provisions of the Financial
  Administration Act, Ontario Ministry of Education
  memorandum 2004B2 and the accounting
  requirements of Ontario Regulation 395/11 of the
  Financial Administration Act
• Note includes requirements of Ontario Regulation
  395/11
• Retirement and other employee future
  benefit Note 1 (g)
• Budget Figures Note 1 (l)

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Note 2, Note 6 and Note 20

• Note 2 is deleted as there is no change of
  accounting policy this year
• Note 6 Deferred Capital Contributions Prior
  year restatement column is deleted
• Note 20 Budget Data note is deleted this year
  as there is no restatement from budget

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Note 21 Subsequent Events

• The Bill was introduced August 27th, 2012, prior
  to the date of the financial statements
• Numerous provisions in the Bill require
  consistency with the Memorandum of Understanding
  (MOU) signed July 5th, 2012 between EDU and OECTA
• MOU requires changes to the Employee Future
  Benefit plans this will impact the actuarial
  estimates for 2011-12 Financial Statements
  purposes

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Note 21 Subsequent Events

• PSAB 2400.09 states that
• Financial statements should be adjusted when
  events occurring between the date of the
  financial statements and the date of their
  completion provide sufficient, additional
  evidence relating to conditions that existed at
  the date of the financial statements
• As their was sufficient evidence at the date of
  the financial statements (the Bill was introduced
  and MOU signed), the Ministry believes an
  adjustment should be made

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Note 7 Retirement and Other Employee Future
Benefits

• Added disclosure for plan changes in accordance
  with MOU/legislation.
• Actuary assumptions and estimates for 2011-12
  should reflect impact plan changes

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• Questions?

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Major changes in 2011-12 Financial Statements
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Major changes in 2011-12 Financial Statements

• Import data file for opening balances and budget
  amounts
• Import data file is available for download in
  EFIS under the Reports module
• Save the file and change the file extension from
  .ASP to .CSV
• use Import cell value button to populate the
  EFIS submission
• Imported values can be over-written if
  restatement of opening balances is required.
• Executive Office restraint attestation form
• Not in EFIS forms but part of the submission
  package
• Attachment to 2012 SB memo XX and available in
  FAAB website for download

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Major changes in 2011-12 Financial Statements

• Schedule 1.2 Consolidated Statement of Cash
  Flow
• Realign some sources of cash to proper categories
• A/R and deferred revenues are separated into
  operating and capital, where the capital related
  items are under financing transactions
• Change in deferred capital contributions (DCC)
  are broken down into different components. DCC
  revenues are classified as non-cash items while
  the additions/(disposal) from DCC are financing
  transactions
• Long term liabilities issued and debt
  repayment/sinking fund contributions are changed
  from input to pick up from Section 12

43
Major changes in 2011-12 Financial Statements

• Schedule 3 Capital Expenditures
• Headings change to align with the names used in
  CAPT
• A new page 9 is added to report capital spending
  by project on existing buildings funded by
  Capital Priorities Grant Major Capital
  Programs.
• Schedule 3C Tangible Capital Assets
• For assets that are reported through the assets
  upload process, the adjustment to opening
  balance data entry is re-activated for input.
• It should only be used for material adjustment
  agreed by the auditors to restate the opening
  balances.
• Any immaterial adjustment should be treated as
  in-year transactions.
• For assets that are not reported through the
  assets upload process, the opening balance
  restatement can be done directly to the opening
  balance column

44
Major changes in 2011-12 Financial Statements

• Schedule 5 Accumulated Surplus/(Deficit)
• A new column is added to report the transfer of
  accumulated surplus to internally appropriated
  for committed capital or to Revenues recognized
  for land.
• Another column is added for boards to adjust the
  pre-loaded unfunded employees future benefits
  (EFB) opening amounts if it is different from the
  liabilities amounts reported in Schedule 10G. The
  difference is due amounts that boards have funded
  in the past.

45
Major changes in 2011-12 Financial Statements

• Schedule 5 Accumulated Surplus/(Deficit)
• Employees future benefits (EFB) are broken down
  into 4 categories for transition into 2012-13 and
  different compliance calculations
• Retirement gratuities (Closing 2011-12
  liabilities to be amortized over EARSL or a
  shorter period starting in 2012-13)
• Post employment benefits/compensated absences
  related to non-vested sick days. (Closing 2011-12
  liabilities will be zero as the non-vested sick
  days will be eliminated as of September 1st,
  2012)
• Retirement Health, Dental, Life Insurance Plans,
  etc. (Closing 2011-12 liabilities to be amortized
  over 10 years or a shorter period starting in
  2012-13.) This is a recent regulation amendment.
• Other Benefits (In-year change in the liabilities
  will be phased into compliance calculation over a
  4 years period starting 2012-13)

46
Major changes in 2011-12 Financial Statements

• Schedule 5.1 Deferred Revenues
• New lines added
• Line 1.28, Tuition Fees International/VISA
  students
• Line 2.6.2, Green School Pilot capital deferred
  revenues
• Line 2.27, Assets Held for Sale
• Lines consolidated
• Line 2.25, Proceeds of Disposition School
  Buildings and line 2.26, Proceeds of Disposition
  Prohibitive to Repair School Buildings are now
  combined.
• Line removed
• Line 1.4.3, Interest on multi-year Capital Lease
  - Full Day Kindergarten is removed

47
Major changes in 2011-12 Financial Statements

• Schedule 5.2 Accounts Receivable Approved
  Capital and Schedule 5.3 Deferred Capital
  Contribution
• A new column is added in both schedule for
  reporting any prior year capital grant
  entitlement adjustment received in the 2011-12
  school year
• Schedule 5.5 List of committed capital amounts
  funded by accumulated surplus
• A new column, col. 2, is added for boards to
  identify if the project funded by accumulated
  surplus being approved by the Ministry
• Schedule 9 Revenues
• Two new cells are added under item 8.3 for
  tuition fees collected from international VISA
  students. One for transfers from deferred
  revenues and the other one is for fees recorded
  as revenues through the accrual approach.

48
Major changes in 2011-12 Financial Statements

• Schedule 10G - Supplementary Information on
  Retirement Benefits, Post-employment Benefits,
  Compensated Absences and Termination Benefits
• Format changed to be consistent with the 2012-13
  Estimates
• EFB divided into 4 categories (same as those in
  Schedule 5)
• The line for change in benefit liabilities due to
  plan amendments negotiated in current year is
  removed.
• New column to capture impact of MOU benefits plan
  changes (retirement gratuities. Retiree benefits,
  post employment/compensated absences)

49
Major changes in 2011-12 Financial Statements

• Schedule 13- Enrolment
• Items 4.1 4.2, the number of full time pupils
  enrolment in Full Day Kindergarten (FDK) approved
  sites are now pre-loaded based on the enrolment
  reported in ONSIS and the list of Ministry
  approved FDK sites. This information will be used
  in Appendix L to calculate the final Early
  Childhood Educator (ECE) funding under the
  Education Program Other Grant (EPO).

50
Major changes in 2011-12 Financial Statements

• Section 12 Debt charges allocation
• The Permanent debt retirement/NPF issues column
  is split into 2 columns. Column 2 for permanent
  debt retirement and Column 2.1 for NPF or capital
  lease issue.
• A new section is added in the second page to
  capture sinking fund debenture retirement to
  distinguish between amount funded by the sinking
  fund assets and amount funded by the Ministry, if
  any, through cash payment rather than refinancing
  through OFA.
• Data Form A2 Special Education Envelope
• A modification is made to show the envelopes for
  FDK special education EPO amount Special
  Equipment Amount (SEA) and the regular Special
  Education Allocation separately. This is similar
  to the change in 2012-13 Estimates.

51
Major changes in 2011-12 Financial Statements

• Appendix B Tuition Fee calculation / Appendix C
  School Foundation Allocation
• The Excel Appendix C now calculates, for each
  combined school, the school foundation allocation
  amount relating to the elementary school.
• Item 1.13 adjustment is now pre-loaded from the
  Excel Appendix C to report the panel split .
• Appendix D1 Report on Education Development
  Charges
• Line 2.4 requires boards to report only the past
  contribution related to disposed land instead of
  the proceeds on disposal. Any gain on the
  disposal should be reported as contribution to
  proceed of disposition other deferred revenues.

52
Major changes in 2011-12 Financial Statements

• Appendix L Early Childhood Educator
• A new page is added in this appendix to calculate
  the final ECE funding based on the data reported
  on the ECE experience grid and the actual
  enrolment of FDK approved site on Schedule 13.
  The final funding will be compared to the actual
  expenses reported in this page and any unspent
  funding will be recovered by the Ministry.

53
Major changes in 2012-13 Revised Estimates
54
Major changes in 2012-13 Revised Estimates

• Schedule 5 - Accumulated Surplus/(Deficit)
• EFB is reported into 3 categories (The closing
  balance of Post employment benefits/compensated
  absences at August 31, 2012 will be zero as the
  non-vested sick days will be eliminated in
  2012/13
• The opening balance EFB for retirement life and
  medical insurance will be managed by the board
  over 10 years or a shorter period if the choose
  to do so. A new cell will be created in Schedule
  10G for board to input the shorter period

55
Major changes in 2012-13 Revised Estimates

• Section 7 Qualification Experience Allocation
• Under the MOU with OECTA, QE movement in the
  grid is allowed at the 97th day of the school
  year
• Two FTE grids are now in this section
• One is for boards to report FTE at Oct 31 as if
  no QE movement is allowed in the school year
  (i.e. same reporting as in 2012/13 Estimates)
• One is for boards to report FTE at Oct 31 as if
  QE movement is allowed at the beginning of the
  school year (i.e. same reporting as in previous
  years)
• The average experience factors from the 2 grids
  will be averaged to calculate the QE allocation

56
Major changes in 2012-13 Revised Estimates

• Benchmarks changes
• To achieve the targeted savings, the investments
  in Professional Development under Elementary and
  the Secondary Programming in the previous PDT are
  rolled back.
• Benchmarks are changed to reflect this
  (highlighted in red)
• Pupil Foundation per pupil amount for
• JK to Grade 3 (English public boards -
  5,428.73, other boards - 5,528.94)
• Grade 4 to 8 (English public boards - 5,520.60,
  other boards - 4,602.92)
• Secondary (5,747.53)
• Supported School benchmarks for Secondary
• School Enrolment lt50, 59,679.87 (School
  Enrolment 16,776.31) B
• 50lt School Enrolment lt200, 1,137,233.02 (A
  4,774.75) B
• 200lt School Enrolment lt500, 277,268.24 (A
  474.93) B
• School Enrolment gt500, 39,803.16 B
• Where B is the ALF amount for the schools in
  French boards.
• Teachers QE per pupil amount for Secondary
  (5,075.31)