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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
• 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 boards submission to the Ministry and an
  electronic copy of this report shall be sent to
  the following mailbox financials.edu_at_ontario.ca

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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
  non-tangible 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 Govt 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 Govt 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.
  (mark.bonham_at_ontario.ca 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.
• contd

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Section 11 NPP allocation Page 3 (contd)

• 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 (contd)

• 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
  lt100K and gt100K (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
• Table amount from Grant Regulation now used at
  11.36.1
• 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 PI 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 (contd)

• 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 financials.edu_at_ontario.ca
• Electronic copy of Excel report on explanation of
  Warnings to the following mailbox
  financials.edu_at_ontario.ca

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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
  Managements 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 2 Technician Amount not Reported

• The allocation for SEA Technicians is calculated
  on the Technician Worksheet (TAB 2) of each
  boards Excel SEA claim
• 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)

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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 years 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 - Firstname.lastname_at_ontario.ca
• 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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