2010-11 FINANCIAL STATEMENTS FORMS FOR ISOLATE BOARDS
The 2010-11 financial statements forms that are provided in Excel consist of four segments:
ü Schedules (1 to 22)
The schedules reflect financial information on the operations of the School Authority (Isolate Board), and include enrolment data in respect of the schools operated by the board.
ü Sections (1 to 19)
These sections calculate the allocations and grants entitlement of the board in accordance with the 2010-11 legislative grants regulation.
ü Appendices (B to H)
The appendices include additional supporting information relating to the financial statements and the calculation of the grant allocations. The appendices also capture certain data used by the ministry for statistical and detailed analysis purposes.
An error message report is included in the package. Boards are required to clear all error messages on file before submitting their financial statements to the ministry. The application will not allow boards to submit their financial statements to the ministry where there are error messages on file.
Warning messages are to be reviewed before submission; any uncleared ones will be reviewed by Ministry Finance Officers and may be referred back to boards for adjustments and financial statement resubmission.
Boards are required to send two signed copies of:
· Schedule 1
· Schedule 1.1
· Schedule 1.2
· Schedule 1.3
· Section 1
These forms are to be printed out from the Excel submission of the 2010-11 Financial Statements, including two copies of the audited financial statements including the auditors report and notes by December 30th, 2011 to:
Ms. Diane Strumila
Project Manager, Grant Services
Financial Analysis and Accountability Branch
17th Floor, Mowat Block, 900 Bay Street
Toronto, Ontario
M7A 1L2
Boards are required to send hard copy print-outs of their full submission.
Publication and Notice
Boards are required under S252(2) of the Education Act to publish their audited financial statements. As a minimum this would include the Consolidated Statement of Financial Position, Consolidated Statement of Operations, Consolidated Statement of Cash Flow, Consolidated Statement of Change in Net Debt, the Auditor’s report, and the notes to the financial statements. In addition boards are required to publish their annual report.
This information is the minimum to be published or made available under clauses 252(2)(a) or (b) of the Education Act; however a board may wish to publish further details.
As an alternative to publishing, a board may choose to meet the requirements of clause 252(2)(c) instead. For the purposes of this clause, a board may make the above information available to its supporters by publishing a notice in local newspaper(s). Such notice shall include the following minimum components:
- That copies of the financial statement package, auditor’s report, notes to the financial statements and the board’s annual report are available upon request,
- The board’s website address where the package etc. will be posted, and
- The school board office address and a phone number to call for requests for the information.
Where possible, the notice should state other locations where the above information may be obtained (e.g. at schools).
Boards are required to send an electronic copy of the financial statements, notes to the financial statements, Auditor’s Report and Board Annual Report as published to their Ministry Finance Officers.
Reporting under PSAB for local government
District school boards and school authorities are required to adopt Public Sector Accounting Board (PSAB) recommendations for local government as their financial standard and publish financial statements that accord with this standard. The exact presentation of these statements may vary from board to board, however, based on the individual board’s circumstances.
The Ministry of Education also requires boards to submit annual financial forms (Ministry Forms) in addition to publishing their audited financial statements. These Ministry Forms have been designed so that they accord with PSAB recommendations and provide reconciliations that comply with the funding requirements of the Education Act. Except for form of presentation, the figures in the Ministry Forms must correspond with the audited financial statements.
These instructions have been prepared to help boards and school authorities to understand how to complete the Ministry Forms.
Suggested Order of Entry
• Enrolment Schedules, Taxation Schedules & Grant Sections
• Long Term Debt - Section 12
• Employee Benefits – Schedule 10G
• Tangible Capital Asset Continuity Schedule – Schedule 3C
• Detail of Accumulated Surplus/(Deficit) opening balances – Schedule 5
• Deferred Revenues – Schedule 5.1
• Operating Exp. - Schedules 10, 10ADJ, 10.1 and 10.2
• Capital Expenditures – Schedule 3
• Revenues – Schedule 9
• Schedule 14 – School Generated Funds
• Assets & Liabilities – Schedule 7
• Other Schedules – 1, 1.1, 1.2 and 1.3
For user assistance on the Excel Forms, contact:
Tim Kielman
Tel: (800) 461-9570, ext. 6892
E-mail:
Summary of changes
NOTE: For the 2010-11 Financial Statements, Isolate Boards are not required to report deferred capital contributions according to the changes to PSAB sections.
· Schedule 1 – Consolidated Statement of Financial Position
The name of this form has been changed from the Statement of Financial Position, to Consolidated Statement of Financial Position. The presentation of the form has been changed to conform to public Sector Accounting Board (PSAB) section PS-1200 and guideline PSG-4 with respect to the presentation of funds and reserves. As per PSG-4, paragraph 7, when a government chooses to provide information about any funds or reserves, it does so only in the notes and schedules and not on the statement of financial position. Therefore the following changes have been made.
· The name of the difference between liabilities and financial assets (item 3) has been changed from Net Financial Asset (Liabilities), to Net Debt
· The name of the sum of Net Debt (item 3) and Non-Financial Assets (item 4.4) has been changed from Net Assets, to Accumulated Surplus (Deficit)
· Fund balances and Amounts to be recovered have been removed
In addition, the schedule will now include a line for Tangible Capital Assets under Non-Financial Assets (item 4.3) due to the implementation of TCA as of September 1, 2009. An additional item, Temporary investments (item 1.2) has also been added. 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). Due to the addition of the temporary investments account, Item 1.5 has been renamed to Long-Term Investments. 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.
· Schedule 1.1 – Consolidated Statement of Operations
The name of this form has been changed from Statement of Financial Activities to Consolidated Statement of Operations. The presentation of the form has been changed to conform to public Sector Accounting Board (PSAB) sections PS-1200 and PSG-4 with respect to the presentation of funds and reserves.
As per PSG-4, paragraph 7, when a government chooses to provide information about any funds or reserves, it does so only in the notes and schedules and not on the statement of financial position. The creation of, addition to or deduction from funds and reserves does not create a revenue or expense, and would therefore not be reported on the statement of operations.
· Schedule 1.2 – Consolidated Statement of Cash Flow
The name of this form has been changed from Statement of Financial Position to Consolidated Statement of Cash Flow. The presentation of the form has been changed to conform to public Sector Accounting Board (PSAB) sections PS-1200. Due to the presentation change, some of the terminology has changed and an additional classification has been added.
· Item 1.1 has been changed to Annual Surplus (Deficit) which is forwarded from Schedule 1.1
· A new item 2.1 has been created to add back the non-cash items (including amortization, write downs and gain/loss on disposal) which are now included in the Annual Surplus (Deficit)
· New items 2.9 and 2.10 have been added to include the (increase) decreases in prepaid expenses and inventories of supplies.
· Capital Transactions classification has been added to conform to PS-1200. New 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.
2010-11 Actual Changes:
Two new input cells created under the 2010-11 Actuals are for Long-term liabilities issued (item 5.1) and Debt repaid and sinking fund contributions (item 5.3). In prior years these amounts were calculated however boards are required to input the balances in the current year.
See instructions below for amounts to input.
· Schedule 1.3 – Consolidated Statement of Change in Net Debt
This form has been added to conform to public Sector Accounting Board (PSAB) sections PS-1200. Per PS1200.031, 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.
The statement of change in net debt reports the acquisition of tangible capital assets in the accounting period as well as other significant (prepaid expenses and supplies inventories) items that explain the difference between the surplus or deficit for the accounting period and the change in net debt in the period. The schedule will track the Tangible Capital Asset activity as well as the other non-financial asset activity.
There is a requirement that budget comparatives be reported in this statement. However, 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 that column in the EXCEL forms.
As per PSG-4, paragraph 7, the creation of, addition to or deduction from funds and reserves does not create a revenue or expense, and would therefore not be reported on the statement of operations. As a result, all revenues will be recorded on Schedule 9 (Revenues) and all expenses will be recorded on Schedule 10 (Expenses).
· Schedule 3 - Capital Expenditures
The name of this form has been changed from Capital Fund – Expenditures and Financing to Capital Expenditures. The purpose of the form is to capture total capital expenditures (capitalized) incurred during the year. The schedule will help the ministry determine the capital expenditures on the different expenditure categories within the functional areas.
· Schedule 3C – Tangible Capital Asset Continuity
This schedule has been revised for the full implementation of tangible capital assets reporting in the 2010-11 financial statements.
The 2010-11 forms include the following changes:
§ All cells for column ‘Adjustments to Opening Balance’ have been made available this year. This includes the adjustment to opening balances for Capital Leased Assets. This change enables boards to enter any required adjustments to the pre-populated opening balances.
§ A new column has been added to the forms in both the Cost and Accumulated Amortization screens.
§ Leasehold Improvements: A new section has been added to report assets under the Leasehold Improvement category.
§ Gains / losses are calculated from information provided in this schedule relating to disposals and proceeds of disposition.
· Schedule 5 – Detail of Accumulated Surplus/(Deficit)
This schedule was formerly known as Reserve Funds (Internally Restricted) – Statement of Continuity. It has been deleted to conform to Public Sector Accounting Board (PSAB) sections PS-1200 and PSG-4 with respect to the presentation of funds and reserves. As per PSG-4, paragraph 7, the creation of, addition to or deduction from funds and reserves does not create a revenue or expense, and would therefore not be reported on the statement of operations. As a result, all revenues will be recorded on Schedule 9 (Revenues) and all expenses will be recorded on Schedule 10 (Expenses).
Schedule 5 will now be called Detail of Accumulated Surplus/Deficit. PS 1200, paragraph 37, requires boards to report, on their statement of financial position, their accumulated surplus or deficit. This amount is defined as the residual interest in assets after deducting liabilities.
Another way to express this is that the accumulated surplus (or deficit) is the sum of all prior annual surpluses (or deficits).
The schedule tracks the portion of the accumulated surplus/deficit that is:
(i) Available for Compliance – Unappropriated
(ii) Available for Compliance - Internally Appropriated
(iii) Unavailable for Compliance
This information is required for the determination of the board’s compliance with the Balanced Budget provision of the Education Act, section 231.(1), which is effective September 1, 2010.
Unfunded Liabilities – Accrued Vacation
Vacation accruals are included in expenses under PSAB. This expense is the amount that should be recorded on Schedule 10. To the extent that this amount differs from the amount paid, the offsetting difference is included in the Increase/(Decrease) in Unfunded Liabilities - Vacation Accrued column on Schedule 10ADJ (Adjustments for Compliance Purposes) in Column 15. If the PSAB expense is greater than the amount paid in cash, the unfunded liability has increased, which is recorded as a positive number on Schedule 10ADJ.
Starting in 2011-12, 50% of this amount will no longer be excluded from compliance and the remaining 50% will be excluded from compliance in 2012-13. As vacation accruals are determined by boards’ vacation policy, boards have been encouraged to look at options to address this expense.
· Schedule 5.1 – Deferred Revenue Continuity
The title of this form has changed from Deferred Revenue (Externally Restricted Reserves) – Statement of Continuity, to Deferred Revenue Continuity.
Lines have been added to this schedule to have a comprehensive list of deferred revenues, under both the Operating and Capital sections (now categorized as Legislative Grants, Other Ministry of Education Grants, Other Provincial Grants and Third Party Grants). All deferred revenues are to be recorded on this schedule.
· Schedule 7 – Detail of Consolidated Statement of Financial Position
The name of this form has changed from Statement of Assets, Liabilities and Non-Financial Assets, to Detail of Consolidated Statement of Financial Position. The presentation of the form has been changed to conform to public Sector Accounting Board (PSAB) section PS-1200.