Chronology of Events
March 31, 2005 Data
Capital Asst
Project for EDU
Website
(1)
Boards entered:
- Historical Cost
- Gross Floor Area
- Other Data
(2)
(2)
Non-permanent
structures (3)
OAGO interim
audit (4)
(2)
Boards verified then
locked records
(2)
Appraisers appraised
values
(5)
Information input into
BVC tool
(6)
Information output
from BVC tool
(6)
For each asset:
- Gross Book Value
- Accumulated Amortization
- Remaining Service Life
(6)
Excel Apr – Aug 05 (7)
Excel Sep 05 – Mar 06 (8)
Excel Apr – Aug 06 (9)
Excel Sep 06 – Mar 07 (10)
For each asset:
- Gross Book Value
- Accumulated Amortization
- Remaining Service Life (10)
Chronology Detail:
(i) January – April 2005
The Ministry of Education developed a capital asset valuation proposal. Please see
methodology on the introduction page.
(1) May 2005
The Ministry of Education’s starting point was obtaining a listing of capital assets. This
was obtained through the School Facilities Inventory System (SFIS) Database. This
database includes school board owned, leased, rented and shared school facilities. This
database is kept up to date by the school boards. We then took the summarized data and
transferred it onto an excel spreadsheet where the boards were asked to indicate which
assets were owned and which were not per 2005:SB07. This information was due back to
the Ministry of Education by July 31, 2005.
For complete instructions on the requirements please follow this link:
http://tpfr.edu.gov.on.ca/Reporting_Entity%20Memos.htm. Scroll down to 2005:SB07
and select, ‘detailed instructions’. A copy of the form is also available for viewing under
‘form’.
(2) August 2005
The Ministry of Education verified the data submitted by the boards under step 1 between
June and the beginning of August. This data was then input into a web-based application
developed the Ontario Realty Corporation (ORC) called Capital Asset Project for EDU
(CAPEdu). The data was divided between land and buildings records and had 3 valuation
methodologies as follows:
- Historical (H): to be used when historical cost was available
- Benchmark/Model 98 (M): to be used for school-type buildings or land acquired pre1965.
- Estimate (E): to be used when the valuation will require an appraiser’s estimate
The boards were asked to input historical cost where available and other data where the
historical cost was not available. They then locked the records when they were satisfied
that the data was accurate and complete. Once the records were locked the appraisers
proceeded to value those assets where historical cost was not available and where the
other valuation methodology could not be used. This process was estimated to take 3
months with a deadline of October 31st, 2005. The process took closer to 5 months.
Please see Capital Asset Project User Guide – For land and building assets for a complete
guide on how to use the website application.
The CAPEdu website has been reactivated and can be accessed by the following link:
http://204.40.6.15/CAP-Edu/login.aspx?ReturnUrl=%2fCAP-Edu%2fHome.aspx
If you previously had access and have forgotten your password, hit ‘forgot password’ and
a password will be e-mailed to you within minutes. If you have never had access to
website, please send an e-mail to Sangita Barman at sangita.barman@ontario.ca for
access.
(3) December 2005
The ORC created another module to the CAPEdu website for boards to report
information on their non-permanent structures. Once again the initial information came
from the SFIS database. We cleansed the data and input it into CAPEdu. Boards had to
confirm the number of non-permanent structures, the year of manufacture as well as their
gross floor area. For details on the CAPEdu module on non-permanent structures, please
refer to Capital Asset Project User Guide – For non-permanent structures on the intro
page under instructions and guides. The corresponding memo that went out outlining the
requirements can be found in 2005:SB34 at the following link:
http://tpfr.edu.gov.on.ca/Reporting_Entity%20Memos.htm and scroll down to SB34.
(4) December 2005
The Office of the Auditor General of Ontario performed an interim audit on the data input
into the CAPEdu website. They asked boards for supporting documentation on the
historical cost entered into the system and did other reasonableness tests where historical
costs was not the valuation methodology used. Ministry of Education and the ORC also
started their data cleansing process on the land assets, building assets and non-permanent
structures.
(5) December 2005 – March 2006
The appraisers began their property and building appraisal process. The appraisers used
floor plans of facilities, photographs, descriptions from ReCapp, geographical location of
assets, conversations with school board staff and a multitude of other information in order
to evaluate the assets.
(6) March – May 2006
The data was input into the BVC tool application after the data cleansing process had
been completed. The BVC application, determined an opening gross book value,
accumulated amortization and remaining service life for each land building asset. This
value was determined using an assumed betterment rate, the condition of the asset and the
year of acquisition / construction. These values were issued for purposes of the
province’s public accounts for the 2005/06 fiscal year.
For more details on the BVC tool, please refer to BVC tool guide on the intro page under
instructions and guides.
(7) October 2005
While the Ministry and boards were concentrating a lot of their efforts on getting the
March 31, 2005 opening land and building asset values, the Ministry was equally
interested in collecting information past this March 31, 2005 starting date. Therefore, the
Ministry decided to collect ongoing capital asset activity twice per year:
- 5 month period (April – August)
- 7 month period (September – March)
The two distinct reporting periods allowed the Ministry of Education to report capital
asset activity to the Province of Ontario for purposes of public accounts on a timely basis.
The Ministry chose an Excel file as a means to collect the activity. The Excel files were
loaded with the boards’ data (that was available at this point). Boards then entered
investments in, new assets, disposals of assets for land, building, land improvement and
construction in progress assets. Boards were also asked to report on their capital and
operating leases on land and building assets. The requirements for this data collection
exercise are further explained in 2005:SB26. This memo is available at the following
link: http://tpfr.edu.gov.on.ca/Reporting_Entity%20Memos.htm and scroll down until
you reach SB 26. The boards were also given instructions on what should be capitalized
through a draft tangible capital asset implementation guide. The final version of this
document is ‘School Board and School Authority Tangible Capital Assets – Provincial
Accounting Policies and Implementation Guide’ which is located on the intro page under
instructions and guides. The guide went through three different versions but the only
change to the guide that impacted land and buildings was a decision to not capitalize
portable moving costs in February 2006. Therefore boards had the choice of correcting
their inclusion in a subsequent excel file.
(8) April 2006
Pursuant to 2006:SB06, the Ministry issued its first 7-month capital activities file to
collect activity on school board land, building and land improvement assets for the period
of September 2005 to March 2006. The memo can be found at the following link
http://tpfr.edu.gov.on.ca/Reporting_Entity%20Memos.htm and scrolling down until you
reach 2006:SB06.
(9) November 2006
Pursuant to 2006:SB26, the Ministry issued its second 5-month capital activities file to
collect activity on school board land, building and land improvement assets for the period
of April 2006 to August 2006. The memo can be found at the following link
http://tpfr.edu.gov.on.ca/Reporting_Entity%20Memos.htm and scrolling down until you
reach 2006:SB26.
(10) March 2007
Pursuant to 2007:SB07, the Ministry issued its second 7-month capital activities file to
collect activity on school board land, building and land improvement assets for the period
of September 2006 to March 2007. The memo can be found at the following link
http://tpfr.edu.gov.on.ca/Consolidation-0307.htm and scrolling down until you reach SB
07.
From all of these data collecting exercises, the Ministry has created excel continuity
spreadsheets starting with the data output by the BVC in March 2005 to March 2007.
They have been posted on the EFIS website under Static Reports. We expect that board
staff and board auditors will be using this document in order to start validating the
opening land and building asset values that will make up the board’s opening balances in
2008/09.