Financial Analysis and Accountability Branch
Fall 2014

2

• The Ministry had informed school boards in Memorandum 2014: SB17 that the previous Enrolment Review process is discontinued and enrolment data from OnSIS will be loaded directly into EFIS 2.0.
Boards should review that enrolment data is properly reflected in
OnSIS.
• OnSIS data will be loaded into EFIS 2.0 on a nightly basis until
September 30, 2014. Any changes in the OnSIS data made by the boards will be reflected in EFIS 2.0 by noon of the next business day.
• In the Financial Statements reporting cycle, an additional folder
“OnSIS Data” will be available.
• For schools in different locations but running the same programs
(same BSID), School Boards can allocate enrolment to the individual facilities.
3

• There is a new folder on the Task List, “OnSIS
Data”, for reviewing enrolment data that has been loaded from OnSIS.
• The items within this folder are: Loaded Enrolment
Data, Ministry Adjustment
– Input and OnSIS
Enrolment Data Review
4

• Loaded Enrolment Data – this folder has two forms, Elementary and
Secondary, each with multiple tabs for type of enrolment data.
5

• There is a tab for each entity (JK, SK, Gr. 1to3, Gr.4to8,
Government of Canada, Visa, Other, ESL, FSL, NL)
• Each tab contains enrolment data by facility for October and
March.
6

• There is a tab for each entity; Gr.9 to 12, Gr. 12-High Credit,
Gr.9to 12(21 and over), Government of Canada, Government of
Canada(21 and over), Visa, Visa(21 and over), Other, Other(21 and over), ESL, FSL, NL, Native Studies, PLAR
• Each tab contains enrolment data by facility for October and
March.
7

• When a facility has multiple programs (i.e. different BSIDs), the Ministry will group the enrolment under all these BSIDs and report the enrolment under this facility
• The Ministry will pre-populate the BSIDs of the programs that are run in that facility in the column “ONSIS Child BSIDs” which is at the far right hand side of the loaded forms.
8

• Only Ministry Admin users and
Finance Officers (FOs) will have access to this functionality, however School
Board users will have read access.
• During the cycle the Admin user’s adjustments will be applied to all working and draft versions of the submission
(including FOs). All versions will then be recalculated using the adjusted enrolment data.
9

Elementary and Secondary Enrolment Adjustment
• The layout of these 2 forms is identical to the previous loaded forms.
• Forms show any Ministry adjustments that have been entered to change the loaded OnSIS data before it is populated into the board’s submission.
• Any audit adjustments that are processed after a Ministry enrolment audit, would be visible on these forms.
10

• This form shows only the facilities that have been adjusted through the
Ministry adjustment input forms. There are two tabs, one for each panel.
11

• This is the final enrolment by facility from OnSIS, after any Ministry adjustments. This is the data that is reflected in the applicable forms in all versions in the School Board’s submission: School Level Data, Schedules
12 and 13, Section 3, and Section 18.
12

Facility Based Enrolment Distribution Form
• There is an additional form, Facility Based Enrolment Distribution, which is the first item within the Input folder.
• This form allows boards to distribute enrolment between facilities that share the same BSID, i.e., running the same program such as parent and annex schools.
• The enrolment data from ONSIS is loaded into the facility with the lower SFIS number.
• Unlike the other OnSIS forms, this will change the enrolment distribution only on the version that is selected at the top of the form.
• Only the facilities that share a BSID will be displayed on this form.
13

Facility Based Enrolment Distribution Form
• Distributions are required to be zero sum adjustments; otherwise, a validation rule will be triggered (i.e. error message).
14

Facility Based Enrolment Distribution Form
• Distributions are required to be zero sum adjustments; otherwise, a validation rule will be triggered (i.e. error message).
15

16

• Continue using EFIS 1.0 to access the TP System
– EFIS 1.0 will be available to school boards until the end of March
2015
• EFIS 2.0 will eventually be used to access the TP
System
17

18

19

Schedule 3C – Tangible Capital Assets – Detail Data – Input
– Land, Buildings and Land Improvements (including CIP and Pre- Acquisition) are to be reported on the asset by asset basis using the Schedule 3C - Detail Data – Input form
– This replaces previous asset upload process using the pipe delimited file
– Information reported in the Detail Data Input schedule will be summarized into the Schedule 3C – Tangible
Capital Assets Continuity Schedule - Input
20

• Each individual asset will be reported on a separate row on the detail data sheet
• 50 blank rows are provided to add new assets acquired during the period
• Each row contains 52 columns which are be broken down into the following sections:
• Asset Information (Asset Name, Serial Number, Type, Status, SFIS
Number and Address)
• Remaining Service Life
• Cost Information (Gross Book Value Details)
• Accumulated Amortization Details
• Net Book Value Opening and Closing Calculations
• Disposals and Proceeds of Disposition Information
• Construction-In-Progress
• Pre-acquisitions
• Transferred Asset Information 21

• Asset information is pre-loaded but editable. Boards need to verify the information and make necessary changes
• Opening balances are pre-loaded and not editable. *** Boards are requested to verify the pre-populated balances on their respective forms to ensure the correct closing balances from the previous year have been brought forward *** Ministry staff should be notified in case of any errors
• Closing balances are calculated. Note: the calculation for each closing balance is a sum of all the previous columns. Thus, fields that are meant to reduce the balances are to be entered as negative numbers
• Two columns are deleted - School year ID and Doc Set ID
• Some columns have been re-ordered
22

• Ministry Asset ID – An unique identifier for each asset across the ministry. It includes the Board ID + Asset Serial ID
• Closing Balances – Calculated on an asset level once data is entered and saved/submitted
• Transfer Between Asset Classes
– boards need to create a new asset with new asset ID and report the transfer on asset by asset basis in the Detail
Data Input form.
• Transfer to Financial Assets
– boards need to create a new AHFS asset with new asset ID and report the transfer on asset by asset basis in the Detail
Data Input form
23

• Net Book Value Opening and Closing
• Gain or loss is separated to two columns. On the asset by asset basis, if it is gain then report in the gain column and if loss, report in loss column.
• Asset Transferred Link – New field to track where the transferred assets are flowing. Boards need to enter the new asset’s ID in the old asset’s Asset Transferred Link column and old asset’s ID in the new asset’s Asset Transferred Link column
• Fully Transferred Flag – New field to identify assets that have been completed disposed of or transferred out e.g. into a Financial
Asset. Assets flagged as ‘Y’ under this column with closing Net
Book Values equal to zero will not be loaded into the next year’s
TCA Detail Input form
24

• EFIS users will be using the “Submission Input and Query – FS” task list to enter TCA data  Navigate to Schedule 3C – Tangible Capital Assets
– Detail Data  Input Folder  Launch the TCA Detail Data input web form:
•
Note -
The form capturing the detail asset data has a very large amount of data associated with it. It will take sometime to load, especially for larger boards to calculate and save. A mid-sized board may take approximately 45 seconds to load. Larger boards will take longer.
25

• Boards can directly input in the web form but will be slow to update and save. It is not recommended that boards use web form for data entry
• Smart View can be used to open details but will need to update the
Registry settings – Reference Troubleshooting Guide – page 8
• Recommendation: Easier to open file in Excel and work with data until data is ready for submission
• Use Export as Spreadsheet instead of Smart View; Extra columns to the right are used for validation
– can hide or delete them
• Use ascending serial ID so they will be correctly ordered in next year
• Addition / Disposal Source codes should be correctly reflected if transaction was between GREs
• Final file for copy into Smartview MUST be sorted in the order of the ministry asset ID (i.e. B66176-A000000000007) which is Board ID + the old Asset Serial Number
26

• The Detail Data – Validation form can be opened concurrently in
Smart View, using a different tab
• Boards cannot enter data directly into the Detail Data – Validation form
• Data validation and error checks are run on the Asset data when the data is saved
• Some columns require specific data format. If the format is wrong, it will generate an error. Cells with errors are highlighted in red
• Check for Data Validation Messages on the upper right hand corner of the screen
• Corrections can only be made by scrolling back to the Detail Data –
Input form, modifying the data and re-saving the form
• For list of format requirements, refer to the Financial Statement
Instructions 27

• Detail data input information is summarized into the TCA Continuity Schedule based on different asset classes
•
Information not captured through the detail data input form should be directly entered in the Continuity schedule
• Adjustments to opening balance is for material adjustments only pertaining to prior period restatements. Minor adjustments should be entered as in-year transactions
•
Transfer between different asset classes will be summarized on the Continuity Schedule
– Detailed Assets data will be pre-populated on the Continuity Schedule
– Enter transfers to/from other assets directly into the Continuity Schedule
– The total of the transfer b/w asset classes column must net to zero; although the corresponding column in the detail data input form may not have to net to zero
•
For pooled assets, if there is either a net gain or net loss on disposal, it should be reported
• For non-pooled assets, boards calculate the gain/loss on an asset by asset basis
•
The total gain and loss has to equal to the Total POD less the Total NBV disposed; otherwise, an error message will be displayed
28

• The form has two tabs:
– Assets Held For Sale tab
– Asset Held For Sale - Details tab
• The first tab is a summary of detailed tab which requires data input on an asset by asset basis
• Assets are classified as one of the following five asset types:
– Land & Land Improvement with Infinite Lives
– Land Improvements
– Buildings - 40 years
– Other Buildings
– Permanently Removed From Service - Buildings - 40 years
• The total under the in year addition column has to equal the net book value transferred from TCA Detail Data Input / Continuity Schedule forms
30

• Asset Held for Sale – Details tab contains 13 columns
• New columns:
– Asset serial ID – Boards need to assign board asset ID to each asset held for sale no matter it is existing asset or new asset; this information will be used to create the Ministry Asset ID in the future
– Asset Transferred Link – similar to Schedule 3C, the column is to track where the asset transfer is from/to. For any new asset transferred into financial assets, boards need to enter the original TCA Asset
ID in the Financial Asset Transferred Link column and enter the Financial Asset ID in the TCA Asset
Transferred Link column
– Asset Held For Sale – Disposal types: C=Complete disposal, P=Partial disposal and N=Not disposed. For an asset that is completely disposed and has zero closing net book value, it will not be pre-loaded into the next cycle
• Gain/Loss is separated into two columns – Gain / Loss on Disposal
– Boards need to calculate the gain/loss on an asset by asset basis and report it in the corresponding column
• Additional Expenditure on AHFS
– Any expenditures on the transferred asset before becoming a Financial Asset should be reported on
Schedule 3C and treated as TCA transactions
– Expenditure on the existing financial assets are normally expensed. If material, boards need to consult with their auditors to see whether it qualifies as addition to financial asset
31

Questions?
32

EFIS 2.0 Tips
• Ensuring business rules are run
– Need to see 2 messages after saving web form
– If the second message is missing, exit the form and choose any input form and hit the save button to trigger the rule to run, ensure calculations are done properly.
34

EFIS 2.0 Tips
• Saving error on long web forms
– On long web forms, sometimes clicking the save button does not seem to initiate anything
– Need to scroll down to the bottom of the form, then back up to the top, and then hit save
– i.e. Schedule 9, Data Form B, Data Form C
• Smart View time-out error while opening or saving large data intensive forms (e.g. TCA Details input)
– Follow the EFIS 2.0 Troubleshooting Guide, page 8, to make the
Registry change to your computer to increase the timeout period
35

EFIS 2.0 Tips
• Report/Printing error
– Follow the EFIS 2.0 User Guide, page 8, to set your preferences for Financial Reporting for the newly released application.
Remember you need to do this once every time you get a new application for each cycle.
36

EFIS 2.0 Tips
• Report book printing error
– Make sure that board and version are selected for both the Main and Detail cubes, and then choose “All” to run the report book. A lot of times the selection on the detail cube is being overlooked.
37

EFIS 2.0 Tips
• Excel
– If you just want a form in Excel but not connected to the database through Smart View, in the Planning form use
“Tools – Export as Spreadsheet – Open with Microsoft
Excel”.
– This will give you an excel workbook in the same format as the planning form and the Smart View form.
– You can then work in this Excel workbook and copy to
Smart View when you are happy with the data.
– When exporting input forms, you will likely see a number of columns that do not contain useful data. Any columns which contain members starting with “Cur” can be ignored
38

EFIS 2.0 Tips
• Smart View
– “Open in Smart View” button is not working
– Refer to the Troubleshooting Guide, Page 10
39

EFIS 2.0 Tips
• Smart View
– Easier copy and pasting into a Smart View sheet:
• Select the Excel Clipboard and set the Options to either “Show Clipboard Automatically” or
“Collect without showing Clipboard”.
• This will save your clipboard data if you have to
Unprotect the Smart View sheet before you can paste in your data.
40

EFIS 2.0 Tips
– For each option, if you input data on one screen, you will need to refresh data on the other screen to see the result.
• Option 1 – If you have 2 different browsers (e.g. Firefox,
Internet Explorer 9), log in under different browsers.
41

EFIS 2.0 Tips
• Option 2 – If you only have one browser, open another browser session:
– In IE, select File > New session from the menu, then go to EFIS website and log in
– In Firefox, we are looking into a solution.
• Option 3 – Use Smart View for input and use the web browser to view result and report
42

EFIS 2.0 Tips
http://faab.edu.gov.on.ca/Financial_Statements.htm
43

44

– Schedule 5.5
• Transfer of Accumulated Surplus amounts to Committed Sinking
Fund Interest
– Schedule 5.1
• EPO line added
• Deferred Revenue Adjustment column added
• Assets Held for Sale – cell opened for transfer to revenue
– Schedule 9
• All EPO grants included on “Other Ministry of Education Grants” line
– Schedule 12
• PLAR now loaded from OnSIS
– Section 17
• Attendance Recognition
45

• Schedule 5.5 – Committed Sinking Fund Interest
– Boards can now transfer accumulated surplus amounts to the Committed Sinking
Fund Interest Earned line, to address shortfalls in interest earned by the sinking fund asset
– Can be from accumulated surplus opening balance, or from the in-year surplus
– Amounts entered on Schedule 5.5 page 2 will flow to Schedule 5, item 2.8.1
46

• Schedule 5.1 – Education Programs – Other (EPO)
– Line 1.7.1 has been added to track EPO grants
– Col. 2 is preloaded with the EPO grants excluding FDK paid to the board in the year
– For details on the loaded EPO grants, boards have access to a file on the EFIS 2.0 system under the Explore > Facilitating Documents > DSB folder. Please refer to the
EFIS 2.0 User Guide, Appendix A, page 135 for instructions on how to access this file.
47

• Schedule 5.1 – Deferred Revenue - Adjustment
– A new column is added to report adjustment to deferred revenues
– It should be used when:
• Board had accrued deferred revenues in previous school year which was flowed in this school year, hence the pre-loaded contribution needed to be adjusted
• There are underspending in EPO grants which were not re-profiled to next school year, the amount should be reclassified as payable to the Ministry using this adjustment.
• Schedule 5.1 – Deferred Revenue – Asset held for sale
– The transfer to revenue cell under Asset held for sale is now opened for input in the case of the sale ended up with a loss, board can transfer part of the deferred revenues to cover the loss.
– Please refer to page 81 of the Fall 2011 Training materials on Financial Statements changes for more details and accounting entries example.
48

• Schedule 9 – Education Programs – Other (EPO)
– Line 2.8 now includes all “Other Ministry of Education Grants”, including EPO grants, from Schedule 5.1
49

• Schedule 12 – PLAR now loaded from OnSIS
50

• Section 17 – Other Grants
– Labour Enhancement - Attendance Recognition
• Boards will calculate their funding using the Excel template provided in
Memorandum 2014:SB15, and input this into EFIS
• Ministry will review the template and EFIS submission
51

• Boards are not required to seek another actuarial valuation for their 2013-14 sick bank top-up liability, but are required to update the sick bank template
• A sick bank top-up liability template was sent to boards as part of the financial statement instruction package for 2013-14 . This template is the same template that was used in the prior year.
•
This liability will be reported on schedule 10G under “Compensated absences”.
•
The boards will be required to update the shaded grey areas of the template. This includes updating the number of employees who have taken sick days (update column 1 of the template) and the average daily salary (column 3).
• The probability of using any banked sick days (column 4) and the average number of banked days taken (column 5) would remain the same as in prior year and the boards should refer to their prior year’s submitted template, or ask their actuary, to obtain the information for the current year.
•
These templates should be submitted to the following email along with school board’s financial statements: financials.edu@ontario.ca

53

• New PSAB accounting standard on Liability for
Contaminated Sites (PS 3260).
• Memoranda 2014:B07 and 2014:SB13 sent May 2014.
• Liability recorded if a government (school board) has a contaminated site that meets certain criteria.
54

• A liability for remediation of contaminated sites should be recognized when, as at the financial reporting date:
(a) an environmental standard exists;
(b) contamination exceeds the environmental standard;
(c) the government is directly responsible or accepts responsibility;
(d) it is expected that future economic benefits will be given up; and
(e) a reasonable estimate can be made.
55

• Contamination - introduction into air, soil, water or sediment of a chemical, organic or radioactive material or live organism that exceeds an environmental standard.
• Contaminated site - substances occur in concentrations that exceed the maximum acceptable amounts under an environmental standard.
– Does not include airborne contamination or contaminants in the earth's atmosphere unless such contaminants have been introduced into soil, water bodies or sediment.
56

• Generally a statute, regulation, by-law, order, permit, contract or agreement.
– legally enforceable and binding.
– compliance is mandatory.
– breaches enforceable through prosecution, fines, jail, order, loss of permit or through administrative proceedings.
• May be created by internal government policy or by guidelines developed by organizations external to the government.
– voluntary compliance create a liability.
– requires professional judgment.
57

• A liability for remediation normally results from either:
– an operation that is no longer in productive use.
o Ex. unused auto shop
– from an unexpected event resulting in contamination.
o Ex. chemical spill or natural disaster
• It is not expected that boards investigate each site.
– Investigate where it is known or there is a likelihood of contamination.
– Consider especially sites that are closed.
58

• Boards can have a contaminated site without having a liability under the PS 3260 contaminated sites liabilities standard.
• Boards should still consider if they have a liability under the PS 3200 liabilities standard.
– If so, it should have already been accrued (ex. the board was ordered to clean up an environmental contamination).
• PSAB working on Asset Retirement Obligation (ARO) standard for assets in productive use.
– Proposal is that liability be included in the cost of the assets and amortized over its useful life.
– Currently, the cost would be recorded as an expense or in opening surplus.
59

• A board may have a school that contains asbestos.
• If this asbestos is contained, there is no requirement to remediate; therefore, a liability would not need to be booked.
• If the asbestos is not contained, the board would need to consider whether PS 3260, PS 3200 or neither apply to their individual situation.
60

• Applicable for fiscal years beginning on or after April 1,
2014 (i.e. the 2014-15 school year).
• The initial liability for contaminated sites will be applied retroactively without restatement.
– i.e. recorded as an adjustment to the opening accumulated surplus as at September 1, 2014.
61

• The opening balance adjustment will not impact the inyear expense nor budget compliance for the 2014-15 year.
– To minimize impact on compliance, boards are encouraged to early identify any potential liabilities.
• O. Reg. 488/10 (Determination of Boards’ Surpluses and
Deficits) excludes the opening accumulated surplus adjustment from compliance.
– multi-year plan required for addressing within compliance.
• After the opening balance adjustment at September 1,
2014, any liabilities for new contaminated sites or changes in liabilities for existing contaminated sites will impact the in-year expense and budget compliance.
62

• Since the Province consolidates the school boards’ financial statements for its March 31 st year end, the
Ministry requires boards to provide information on liabilities for contaminated sites for the March 2015 report.
• Boards will also record any liabilities for contaminated sites in their 2014-15 financial statements, as required by the standard.
• The 2014-15 Revised Estimates will have a line on
Schedule 5 (Accumulated Surplus).
– If information is known, boards are encouraged to report it.
63

• Discuss with your external auditors risk areas and possible disclosures that may be required.
• Determine if any site owned by the board meets the recognition criteria.
– specialists may need to be engaged.
– check with senior/long serving staff if aware of past contaminates.
• If any sites meet the criteria, remediation costs will need to be estimated.
• Share implementation risks and potential impact with your Ministry contact prior to data submission in March
2015.
64

• The following information should be disclosed:
– Nature and source of liability.
– Basis for estimate.
– If net present value technique is used, the estimated undiscounted expenditures and discount rate.
– Reasons for not recognizing a liability.
– Estimated recoveries, if any.
• Regarding the level of disclosure, consider:
– Board statements are highly aggregated so grouping items together may be useful.
– Usefulness of information in assessing nature and extent of liability for remediation.
– Sensitivity of information.
65

Questions?
66

• In the 2014-15 Estimates, Appendix E was added to the forms to report EPO grants and related expense information
• A similar schedule will be added to next year’s March Report
• An additional column that will be included is to collect the actual spending for the 7-month period
• Boards are required to complete the required cells in the entire
Appendix
Program Allocation ($) Deferred
Revenue
Adjustment
Actual 7M
Spending
(September 1,
2014 to March
Projected
Spending ($)
(September 1,
31, 2015)
2014-2015 SY
2014 to August 31,
2015)
Variance ($) Variance
Explanation
Program 1
Program 2
Program …
Re-Profile
Amount (to the max pf positive variance)
Sipporting Transfer to
Documents revenues
Attached?
from deferred revenues

69

• Boards should to ensure that there is consistency in reporting year over year
• In the Financial Statement and March Report forms, different lines are mapped into different accounts during the consolidation of
Public Accounts. Reporting data on different lines at different periods will result in expenses/liabilities not being comparable period over period
• Examples include:
– Other Accrued Payables and Liability in one cycle; and under Other
Liabilities in another
– Supply and Services Expenses in one year and Other Expenses in another period
– Rental Revenues versus Other Third Party Revenues

• Schedule 20 in the March Report is similar to the
Schedule 9 in the financial statement
• Boards to ensure the same reporting approach in the
Financial Statement is used and report consistently in the
March report
• In previous years some boards included two calendar years’ supplementary and tax write off in line 3.1
71

• In 2014-15 March report:
– The following two items should be included in the line 3.1 or line 3.2 for the 2014 supplementary taxes and tax write-offs
• 2014 calendar year supplementary taxes net of the write off
• Subtract the amount reported in the 2013-14 financial statement line 3.4
– Line 3.4 – Tax Supplementary and Tax Write Off Adjustment – Accrual re: 2015
Amounts will only be used when the 2015 amount is significantly different from previous years and the information is available . It is expected that this cell will have limited use and will only be used in extraordinary circumstances
• Ministry will update the March Report Instructions accordingly
72

• This schedule captures the Notes to the Financial Statements as of
March 31 st of the current year
‒ Default reporting is what was reported on the last Audited Financial Statements
‒
Boards should not leave Schedule 20 SUP blank if any of the four types of notes were disclosed in last year’s financial statements
‒ In the F/S, if the format used was different, adopt the input to the Schedule 20
SUP format based on substance
‒ Encourage boards to review last year’s training slides to determine whether the notes needs to be updated since F/S
• The Notes in the March Report includes the following categories:
‒
Contractual Obligations
‒ Loans Guarantees
‒
Lawsuits and Claims
‒ Other Contingent Liabilities

• Contractual Obligation
– A description with meaningful details of the obligation. This should reflect what Obligation Type the note fits in (1-Construction Contracts /2-
Operating Leases /3-Other/4-Transfer Payments/5-Ontario Power/6-
Alternative Financing and Procurement (AFP))
– Identify the Obligation Type as close as possible to the nature of the note.
In the past, most notes have been coded either as Construction Contracts or Other
– The total estimated cost to be broken down to identify the obligation amounts by year if applicable
• Loan Guarantees
– Both the Amount Guaranteed by BPS and Maximum Amount Authorized need to be reported
– The Maximum Amount Authorized is the amount up to which a loan can be guaranteed; this is either equal or greater than the amount guaranteed 74

•
Refer to PSA Handbook Section 3250 and 3255 for terminologies used in Schedules 10 F and 10G
• As of the 2013-14 Financial Statements, Life Insurance / Long-Term Disability is broken down on Schedule 10F into two separate columns: Long-Term Disability and Life
Insurance
• Emphasis should be made to ensure the different benefit categories on Schedule 10F and
10G are reported accurately; amounts from these schedules are used for provincial reporting purposes at consolidation
•
For the following benefit categories, total expense reported in Schedule 10F should equal column 2 of Schedule 10G, under the respective benefit category:
– Retirement Gratuity Plans and Early Retirement Incentive Plans (ERIP)
– Retirement Health, Dental, Life Insurance Plans, etc.
– Compensated Absences
– Long-Term Disability Plans
– Workers’ Compensation Benefits
– Termination Benefits
– OPSEU Pension Plans
– Other Pension Plans
• Warning messages have been added to assist boards in ensuring both schedules agree to one another
75

• Course Lists
– Boards are required to submit the Continuing Ed Course List each year
• Schedule 5.6 – EDC Revenues
– The breakdown between EDC and non-EDC revenues is not always provided
• Section 11 – School Operations Allocations for S.23 Programs
– FTE count reported on Line 11.12.2 do not reconcile to approved files sent to Field
Services
• Section 11 – Allocation for Short Term Notional Interest
– Boards do not always enter required amount on Line 11.30.8
• Section 12 – Not Permanently Financed (NPF) – New Capital
Programs
– Closing balance on Line 12.17 should agree with Schedule 5.2, Lines 1.3-1.5
76

Questions?
77

78

• Ministry review of 2012-13 Asset Upload resulted in the following issues being observed:
• Significant investment without RSL Change
– Boards need to review policy and practice surrounding the adjustment of RSL
• Small investment with positive RSL change
– Should these expenditure be capitalized? Are the capitalization criteria met?
– What the impact of these expenditure on the service life of these assets?
• Negative Investment with positive RSL change
– Boards need to check whether the revision of RSL is correct.
– Are these adjustments related to investments that incurred in prior years?
79

• PS 3150.28 - Factors that should be considered in estimating the useful life:
– Expected future usage
– Effects of technological obsolescence
– Expected wear and tear from use or passage of time
– The maintenance program
– Studies of similar items retired
– The condition of existing comparable items
• PS 3150.29 - The RSL of unamortized portion of an asset should be reviewed on a regular basis and revised when the appropriateness of a change can be clearly demonstrated

– A change in the extent in which the asset is used
– A change in the manner in which the asset is used
– Removal of the asset from service for an extended period of time
– Physical damage
– Significant technological development (ex. Betterment or significant investment)
– A change in law or environment affecting the period of time over which the asset can be used

• Positive Changes/Increase to RSL
– Major Component of a building is replaced (roof, window, HVAC, etc..)
– Addition or Retrofit
– When an investment is made in a building with a RSL of 10 years or less
• Negative Changes/Decrease in RSL
– When a school is closed
– When a building has suffered extensive property damage (ex.
Flooding)
• Changes to RSL should never result in making the RSL of the asset negative

Yearly basis - based on existing financial information and known changes to RSL
- Every 5 years – based on a comprehensive analysis and review by knowledgeable staff responsible for the facility
83

• Appendix M of TCA guide provides examples of methods that can be used to update RSL
• Method 1 – based on additions to GBV and the reconstruct cost
• Method 2 – based on the increase in a component’s RSL and updating the component’s proportion
• Method 3 – based on an increase of a component’s contribution to the asset’s RSL
• Facilities staff should work collaboratively with finance staff on this
84

Asset
Name
School A E
School B S
A B C=A*B D=C/40
Life
E
Book Value
F=E/D G
Type Square Construction
Meters Cost Rate
2011 Cost to Construct
2011 Cost / $ Additions Increase
Year Useful to Gross in RSL
Remaining 2014
Service Life Adjusted at August
31, 2013
H=F+G
Useful
Life
5,282
17,999
1,848
2,016
9,758,812
36,277,524
243,970
906,938
985,675
1,563,333
4.04
1.72
17.00
29.00
21.04
30.72
• Column B – Construction benchmark was further updated for 2014-
15 school year. For the updated construction cost rate, please refer to the latest technical paper
• Boards should develop internal policies on fractional changes to
RSL
• Boards need to determine whether RSL will be updated for fractional changes
• Boards may wish to round up or down instead of working with fractional changes
85

• This method uses the RSL Means proportion to estimate
RSL
• The book “RS Means Square Foot Cost 30 th Annual
Edition: 2009” provides a standard to estimate the proportion and useful life of each component
• The betterment to a component extends the useful life of that component and as a result changes the RSL of the whole asset
86

Elementary School High School, 2-3 Story Jr. High School, 2-3 Story
RS Means
Proportion
Max Est. Useful
Life
Substructure
Shell - Roof
Shell - Other
Interior
Conveying
Plumbing
HVAC
Fire Protection
Electrical
Equip & Furnishings
12.10%
6.50%
17.90%
21.00%
0.00%
9.80%
17.90%
2.20%
12.40%
0.20%
90
20
50
40
25
25
25
25
25
15
100.00% 40.145
* From book "RS Means Square Foot Cost 30th Annual Edition: 2009"
RS Means
Proportion
4.20%
4.90%
31.50%
21.00%
0.50%
5.20%
16.20%
1.70%
12.80%
2.00%
100.00%
Max Est. Useful
Life
25
25
25
25
25
15
38.31
90
20
50
40
RS Means
Proportion
4.00%
4.80%
32.40%
23.60%
0.60%
4.20%
15.00%
0.30%
12.60%
2.50%
100.00%
Max Est. Useful
Life
25
25
25
25
25
15
38.75
90
20
50
40
• For new building that the board has all historical information, boards may calculate the proportion based on that information.
87

A
B=A*Historical
Cost C
D =
(B+C)/Total
New Cost E F G=E+F H=G*D I=H-E
Substructure
Shell - Roof
Shell - Other
Interior
Conveying
Plumbing
HVAC
Fire Protection
Electrical
Equip & Furnishings
Standard or
Asset Specific
Proportion
12.1%
Calculated
Component Cost
1,210,000
6.5%
17.9%
21.0%
0.0%
9.8%
17.9%
2.2%
12.4%
0.2%
100.0%
650,000
1,790,000
2,100,000
-
980,000
1,790,000
220,000
1,240,000
20,000
10,000,000
Roof
Betterment
1,200,000
New
Proportion
10.8%
16.5%
16.0%
18.8%
0.0%
8.8%
16.0%
2.0%
11.1%
0.2%
100.0%
RSL Before
Betterment
65.00
2.00
25.00
15.00
20.00
22.00
11.00
15.00
20.00
12.00
22.58
Increase in RSL
17
New
Component
RSL
65
19.0
25
15
20
22
11
15
20
12
New Asset
RSL
7.02
3.14
4.00
2.81
-
1.93
1.76
0.29
2.21
0.02
23.18
1,200,000 17
•
Column E can be calculated, i.e. after 18 years, the RSL of roof will be 20-18=2
Increase in RSL
0.603
• If there was betterment in the past and information is not available, it will have to be estimated by board staff
• Column F can be based on manufacturer’s specifications or using professional judgement of facilities staff
• Based on the result in column I, boards need to determine whether an adjustment to RSL is required based on internal policy of fractional change of RSL
88

C = A x B D = C/40.125
E = D*23 A B F G = F/B H = C x G I = E + H
Substructure
Shell - Roof
Shell - Other
Interior
Conveying
Pulmbing
HVAC
Fire Protection
Electrical
Equip & Furnishings
Proportion of
Component
Contribution
Component
Contribution to Assset RSL at 23 Years to Asset RSL
(40.125 Years)
(%)
27.1%
3.2%
22.3%
20.9%
(before betterment)
(years)
6.2
0.7
5.1
4.8
Increase in RSL
(years)
15
0.0%
6.1%
11.1%
1.4%
7.7%
0.1%
100.0%
0.0
1.4
2.6
0.3
1.8
0.0
23
Increase in
Increase in RSL
RSL per
Component
(%) (years)
75.0% 0.975
0.975
RSL per
Component at 23 Years
RSL (after betterment)
(years)
6.24
1.72
5.13
4.81
0.00
1.40
2.56
0.32
1.78
0.02
23.975
• This method needs least information
• Instead of estimating the RSL before betterment, it is calculated based on the proportion of component contribution to the asset RSL
• Column F – increase of RSL should be based on manufacture’s specifications or using professional judgement of facilities staff 89

90