ESTIMATES FORMS

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1 ESTIMATES FORMS SUBMISSION INSTRUCTIONS AND CONTACT INFORMATION... 3 SUMMARY OF CHANGES... 4 LIST OF FORM ADDITIONS, DELETIONS AND CHANGES CREDIT THRESHOLD... 4 SUGGESTED ORDER OF ENTRY... 6 DESCRIPTION OF FORM CHANGES... 6 FORM INSTRUCTIONS COMPLIANCE REPORT SCHEDULE 1.1: CONSOLIDATED STATEMENT OF OPERATIONS SCHEDULE 3 CAPITAL EXPENDITURE BUDGET SCHEDULE 3C TANGIBLE CAPITAL ASSET CONTINUITY SCHEDULE SCHEDULE 3D ASSETS HELD FOR SALE CONTINUITY SCHEDULE 5 DETAIL OF ACCUMULATED SURPLUS/(DEFICIT) SCHEDULE 5.1 DEFERRED REVENUE CONTINUITY SCHEDULE 5.2: ACCOUNTS RECEIVABLE CONTINUITY GOVERNMENT OF ONTARIO APPROVED CAPITAL SCHEDULE 5.3: DEFERRED CAPITAL CONTRIBUTIONS CONTINUITY SCHEDULE 5.5 LIST OF COMMITTED CAPITAL AMOUNTS FUNDED BY ACCUMULATED SURPLUS SCHEDULE 5.6A: CONTINUITY OF REVENUES RECOGNIZED FOR THE PURCHASE OF LAND SCHEDULE 5.6B: CAPITAL DEFICIT ON LAND SCHEDULE 9: REVENUES SCHEDULE 10 - EXPENSES SCHEDULE 10ADJ: ADJUSTMENTS FOR COMPLIANCE PURPOSES SCHEDULES 10.1 AND 10.2 SCHOOL BASED EXPENSES ELEMENTARY AND SECONDARY SCHEDULE 10A AND 10B SPECIAL EDUCATION EXPENSES SCHEDULE 10C SCHOOL OPERATIONS AND MAINTENANCE EXPENSES SCHEDULE 10F EMPLOYEE BENEFITS SCHEDULE 10G SUPPLEMENTARY INFORMATION ON EMPLOYEE BENEFIT OBLIGATIONS SCHEDULE 11A AND 11B - TAX REVENUE FOR THE CALENDAR YEAR SCHEDULE 12 CONTINUING EDUCATION AND SUMMER SCHOOL ENROLMENT AND PLAR SCHEDULE 13 DAY SCHOOL ENROLMENT SCHEDULE 14 SCHOOL GENERATED FUNDS SECTION 1A - SUMMARY OF ALLOCATIONS SECTION 1.1 PUPIL FOUNDATION ALLOCATION SECTION 1.3 SCHOOL FOUNDATION ALLOCATION SECTION 2 - SPECIAL EDUCATION ALLOCATION SECTION 3 LANGUAGE ALLOCATION SECTION 4 SUPPORTED SCHOOLS ALLOCATION SECTION 5 REMOTE AND RURAL ALLOCATION SECTION 5A RURAL AND SMALL COMMUNITY ALLOCATION SECTION 6 CONTINUING EDUCATION ALLOCATION SECTION 7 COST ADJUSTMENT AND TEACHER QUALIFICATION AND EXPERIENCE ALLOCATION SECTION 9 TRANSPORTATION ALLOCATION SECTION 10 ADMINISTRATION AND GOVERNANCE ALLOCATION SECTION 11 PUPIL ACCOMMODATION ALLOCATION SECTION 12 DEBT CHARGES ALLOCATION SECTION 13 LEARNING OPPORTUNITIES ALLOCATION SECTION 14 TAX REVENUE AND TERRITORIAL DISTRICT ADJUSTMENTS SECTION 16 DECLINING ENROLMENT ADJUSTMENT (DEA) SECTION 18 FIRST NATION, MÉTIS AND INUIT SUPPLEMENT

2 SECTION 19 SAFE SCHOOLS ALLOCATION DATA FORM A.2 ENVELOPING DATA FORM B ALLOCATION OF FUNDING TO EXPENDITURE CATEGORIES ELEMENTARY DATA FORM C ALLOCATION OF FUNDING TO EXPENDITURE CATEGORIES SECONDARY DATA FORM D VARIANCE REPORT ALLOCATION TO NET EXPENDITURES APPENDIX B CALCULATION OF FEES APPENDIX C TOP-UP FUNDING AND DISTANT SCHOOLS AND SCHOOL FOUNDATION ALLOCATIONS APPENDIX G BOARD TEACHER SALARY GRID 2013/ APPENDIX H 2013/14 STAFFING APPENDIX L EARLY CHILDHOOD EDUCATOR GRID

3 SUBMISSION INSTRUCTIONS AND CONTACT INFORMATION The Estimates forms are provided under the Education Finance Information System (EFIS). Boards are required to: - submit their Estimates to the Ministry under EFIS - send two signed copies of the following, printed out from the active EFIS submission of the Estimates: - Certificate of Director of Education- Compliance Report - Schedule 9 - Schedule 10 - Schedule 10ADJ - Section 1A summary The above should be sent by June 28, 2013 to: Ms. Diane Strumila Project Manager, Grant Services Financial Analysis and Accountability Branch 17th Floor, Mowat Block, 900 Bay Street Toronto, Ontario M7A 1L2 - submit the warning message explanation report to the following mailbox: Estimates.met@ontario.ca For user/navigation assistance on EFIS, contact: Martin Fry Adriana Mudron Olivia Iemma Emily Wells Stephen Shek Tel: (416) martin.fry@ontario.ca Tel: (416) adriana.mudron@ontario.ca Tel: (416) olivia.iemma@ontario.ca Tel: (416) emily.wells@ontario.ca Tel: (416) stephen.shek@ontario.ca For log in and Appendix C data upload assistance, contact: Mark Bonham Tel: (416) mark.bonham@ontario.ca Reference Material The following instructions explain how to complete the EFIS forms. Knowledge of the underlying accounting and finance transactions is required to understand why amounts are reported. This information is provided through the Ministry Training Sessions, held annually in September. Material from these sessions is posted at 3

4 SUMMARY OF CHANGES List of Form Additions, Deletions and Changes The following schedules include changes from the Revised Estimates: Schedule 3 Capital Expenditure Budget Schedule 5 Detail of Accumulated Surplus/(Deficit) Schedule 5.1 Deferred Revenues Schedule 5.2 Accounts Receivable Continuity Schedule 5.6 Land Revenues and Deficit Schedule 10G Supplementary Information on Retirement Benefits and Termination Benefits Schedule 13 Enrolment Section 1 Summary of Allocations Section 6 - Continuing Education Allocation and Other Programs Section 7 - Cost Adjustment and Teacher Qualification and Experience Section 9 Transportation Allocation Section 11 Pupil Accommodation Section 12 Debt Charges Allocation Data Form C Allocation of Funding to Expense Categories Secondary Appendix B Calculation of Fees Appendix C - Top up allocations and Distant Schools and Rural Schools Allocation 34 CREDIT THRESHOLD A four year secondary school strategy, including administrative and funding changes related to the 34- credit threshold, is being implemented starting in the school year. The strategy includes three key components: i. Policy and program changes to encourage graduation within four years: Launching a new policy for Kindergarten through Grade 12 to support students education and career/life planning through elementary and secondary school. ii. Improving access to part time studies: Regulatory changes that now require principals to inform students who need only one or two credits to graduate secondary school or have already graduated of alternative ways to earn a credit that would not require full-time day school attendance. iii. Differentiated funding in day school program for credits over a 34-credit threshold: The portion of a pupil s enrolment over the 34-credit threshold will be included in a new high-credit day school ADE category, which will be funded at the Continuing Education rate. High credit day school ADE will be funded through the Continuing Education and Other Programs Grant instead of through components generated for regular day school ADE (i.e. Pupil Foundation, Q&E, Spec. Ed, Transportation etc.). This is similar to how pupils who are 21 years old or older and enrolled in the day school are funded. 4

5 Pupils enrolled over the 34-credit threshold who are eligible for ESL/ELD Recent Immigrant, FSL, PANA, and Native Languages/Native Studies will continue to be funded as long as they generate regular day school ADE. However, fully high-credit pupils (those who generate no regular day school ADE) are excluded from these allocations as they are funded at the Continuing Education rate. Further details are also available in the document entitled Technical Instructions for Implementing the 34 Credit Threshold Policy, which is available on the Ministry s website ADE definition To implement the 34 credit threshold, the definition of Average Daily Enrolment had been amended in the Ontario Regulation for Calculation of Average Daily Enrolment. For the purpose of this document and the EFIS forms, the ADE and FTE referred in this document and in EFIS forms are the ADE and FTE excluding High Credit ADE and FTE, unless specified otherwise. New Schools and Closed Schools in reporting To ensure estimates and revised estimates submitted reflect complete information the ministry is introducing timelines in the process for School Boards to obtain School ID s. Any new schools to be opened in and any scheduled for closure that year should be reported to the ministry by June 30, Attached is a template for boards to complete for each new school or school closure. The completed templates should be sent back to Martin Fry at martin.fry@ontario.ca by that date. The ministry will use this information to verify against information in the board s estimates submission, and will assign the appropriate school ID and school types (i.e. Supported School, Rural School or Regular School) by August 31, Boards should note that the school in respect of which a new school ID is requested must have an SFIS number and a BSID assigned. In reviewing past practices, the ministry has noted that a large number of requests for school ID s and BSID are made well into the school year, very often past revised estimates stage; this creates fiscal planning issues for the ministry. It is therefore important that School Boards get the school information to the Ministry before the June 30, 2013 timeline; any school requests after that date will be processed for and will therefore not attract the funding in In the Estimates, School Boards can assign its own School ID and School Type in the Excel Appendix C for schools that are pending assignment by the Ministry in order to project funding for these schools. In the Revised Estimates and Financial Statements, the Excel Appendix C will be updated using the result of the data reported to the Ministry and boards will not be able to assign School ID and School Types. Pre-loaded data There are data through out the EFIS forms being pre-populated based on different sources: Benchmarks and table amounts from the GSN regulation Data from previous year EFIS forms. If the data is pre-populated from the Revised Estimates EFIS forms, there is an adjustment cell associated with it for boards to adjust to the latest data available if applicable. 5

6 SUGGESTED ORDER OF ENTRY Enrolment Schedules (schedules 12 &13), taxation schedule (schedule 11A) and Grant Sections (sections 1 to 19) Section 16, adjustment to pre-loaded enrolment data from Revised Estimates, if applicable. Excel based Appendix C Schedule List of Committed Capital Projects Funded by Accumulated Surplus Schedule 5 Detail of Accumulated Surplus/(Deficit) (opening balances) Section 12 Capital Debt Charges Allocation Schedule 5.1 Deferred Revenue Schedule (columns 1, 2 and 3 only) Schedule 3 Capital Expenditure Budget (data input on all screens relating to this schedule) Schedule 3C - Tangible Capital Asset Continuity Schedule 3D Schedules 10.1, 10.2, 10, 10ADJ, 10A, 10B - Expenses Schedule 9 Revenues Schedule 14 School Generated Funds Schedule 5.1 Deferred Revenue Schedule (remainder of schedule) Schedule 5.2 Accounts Receivable/Payable Continuity - Government of Ontario Approved Capital Schedule 5.3 Deferred Capital Contributions Continuity Schedule 5.6A Continuity of Revenues Recognized for the Purchase of Land Schedule 5.6B Capital Deficit on Land Schedule 5 Detail of Accumulated Surplus/(Deficit) (remainder of schedule) Data Form A.2, B, C and D Description of Form Changes For a high level overview of the changes described herein, please refer to memorandum 2013: SB11, Estimates. Schedule 3 The first six pages of the schedule were simplified to three pages which combine the capital expenditures reporting with the calculation of the grant entitlement. The capital expenditures are no longer reported by detail assets class, boards will report the capital expenditures in four asset classes: land, non-land, moveable type assets and capitalized interest. Two new pages were added for reporting capital expenditures by projects funded by the Capital Priorities Grant Major Capital Programs and Capital Priorities Grant Land Schedule 5 6

7 The opening balances for Employee s Future Benefits for Retirement Gratuities liability, Early Retirement Incentive Plan, Retirement Health, Dental, Life Insurance Plans were changed from input cells to pick up from a new page on Schedule 10G. The Adjustment to Employee Future Benefits column is removed as this is not applicable, the opening balances are no longer tied to the actual liabilities reported in Schedule 10G. The vacation accrual line is removed as the unfunded amount, which was phased into compliance in and , is now fully addressed for compliance purposes. Schedule 5.1 The transfer to revenues amount for the deferred revenues of interest on capital was updated to include capitalized interest on expenditures funded by Capital Priorities Grant Land, if applicable. Schedule 5.6 The Revenues recognized in re: current year land expenditures at item 1.3 was updated to include capitalized interest on expenditures funded by Capital Priorities Grant Land, if applicable. Schedule 10ADJ The column for the unfunded liabilities related to vacation accrual was removed as the unfunded liabilities are fully phased into compliance. 50% of the in-year changes in the unfunded liabilities for employee benefits other than retirement gratuity (Column 16 and 17) and retiree benefits (health, dental, etc.) will now be included in compliance. Schedule 10G The first page of this schedule was removed as most of the information on this page will only be required in the Financial Statements. The data required in Estimates and Revised Estimates were transferred to a new page in this schedule. The opening balances of the unfunded liability related to Retirement Gratuities, Early Retirement Incentive Plan, Retirement Health, Dental, Life Insurance Plans are pre-loaded from the Ministry reviewed Revised Estimates Schedule 5 closing balances. These balances can only be adjusted if the EARSL or amortization period in had been changed from what was reported in the Revised Estimates. These balances will be picked up on Schedule 5. The corresponding EARSL and amortization period are pre-loaded from the Ministry reviewed Revised Estimates Schedule 10G minus one year. It can also be adjusted but cannot exceed the remaining period of the original EARSL and amortization period in (e.g. If the original EARSL is 15 years, the remaining period of the original EARSL in is 14 years). The opening balances and the EARSL/amortization periods are used to calculate the in-year 7

8 phase in amount for compliance and will be picked up on column 3 of Schedule 5 Schedule 13 This schedule was changed to reflect the impact of the 34 Credit Threshold on reporting enrolment to the Ministry. For details on how to calculate the FTE relating to the 34 Credit Threshold, please refer to memorandum 2013:SB 01. The FTE for Secondary is now split into two categories: Regular (i.e. excluding high-creditfte) and high-credit. Three new columns were inserted for boards to report the high-credit FTE for full-time pupils; part-time pupils and total high-credit FTE. The high-credit FTE is used to calculate the ADE and is then populated at item 3.10 of page 3. The high-credit ADE also populates Section 6 for funding at the Continuing Education funding rate. The regular ADE is populated in various sections for funding calculations. In the past, total ADE was used and many of these calculations now refer to regular ADE. Section 1 The Ministry has not pre-loaded the funding for Retrofitting school space for child care. The Ministry is in the process of reviewing the board by board allocation and will make it available in the Revised Estimates. Section 6 In keeping with the policy that high credit day school ADE will be funded through the Continuing Education Allocation and Other Programs Grant, the high-credit ADE has been added to the calculation of this grant.at line, 6.2. Section 7 The calculation of the average experience factor was changed to reflect the movement of the grid allowed at the 97 th day of the school year not 98 th day of the school year. Number of NTIP teachers with 2 years or less experience from last year comes from the grid with movement reported not from the frozen grid. Section 9 Route Efficiency Amount is removed from the funding, however, the Cost Update Amount is now available to provide 2% cost update with offset against previous year transportation allocation surplus. Section 11 Line 11.4 and have been updated to capture high credit ADE which will be funded at the same rate as the adult day school pupils for School Operations as well as School Renewal. Funding for year five first-time equipping is available to school board, based on pupils of the 8

9 board enrolled in FDK, as of October 31, This revision reconciles earlier funding that was based on enrolment projections with actual pupils of the board enrolled in FDK, as of October 31, The mitigation funding for the impact of updating the Geographic Adjustment Factor (GAF), the Over/Under 20 Years of Age Factor, and the Supplementary Area Factor (SAF) is removed as this was a one-time funding. Section 12 A new line, , was added for boards to report any OFA loan issued after March, 2013 based on new information available to them or board projections. The information on line 12.5, OFA loan, is populated by the Ministry based on all OFA loan issues up to March, Data Form C The high credit funding calculated in Section 6, Continuing Education and other Programs, is included under column 21, Adult Day School and High Credit. This funding is allocated to various expense lines based on the notional provincial funding distribution percentage for Adult Day School. Appendix B Since the Distant School Allocation (DSA) had been phased out, the Ministry will include the calculation of the adjustment to the Supported School Allocation which is the portion of the allocation in a combined school related to the Elementary enrolment. This calculation is automatically calculated in the Excel Appendix C and populated on this appendix after the board has submitted its Excel Appendix C to the Ministry. Appendix C In the Excel Appendix C, boards should report the ADE excluding the high-credit ADE for each school. A new column is added to calculate the adjustment to the Supported School Allocation which is the portion of the allocation in a combined school related to the Elementary enrolment. 9

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11 FORM INSTRUCTIONS Compliance Report Balanced Budget As per Education Act s231.(1), this calculation is used to determine if the board has a balanced budget. The Balanced Budget calculation does not apply if the board is in a financial recovery plan. In such a case, compliance would be based on the provisions of the financial recovery plan (Education Act s231.(2)). Below is the calculation to determine if a board has a balanced budget. A board shall not, without the Minister s approval, have an in-year deficit for a fiscal year that is greater than the amount determined as follows: 1. Take the board s accumulated surplus (available for compliance) for the preceding fiscal year. If the board does not have an accumulated surplus, the number determined under this paragraph is deemed to be zero. 2. Take 1 per cent of the board s operating revenue for the fiscal year. 3. Take the lesser of the amounts determined under paragraphs 1 and 2. The in-year deficit, if any, is calculated at item 1.3 as item 1.1 (revenues) less item (Revenues-Land), less item 1.2 (expenses for compliance purposes). The revenues are calculated as the total revenues from Schedule 9 less school generated funds and revenues recognized for the purchase of land. The expenses come from Schedule 10ADJ. The board s accumulated surplus for the preceding fiscal year is calculated at item 1.7. One per cent of the board s operating revenue for the fiscal year is calculated at item 1.6. The board may not have an in-year deficit greater than the lesser of the amount at item 1.6 and item 1.7. At item 1.10, the board would record any amount of Ministerial approval received in-year in excess of the amount at item 1.8. This approval must be obtained prior to a board s final approval of its budget or financial statements. If a board s in-year deficit is caused by situations that are not permanent or non-structural in nature, approval will take no longer than five business days from the day the Ministry acknowledges receipt of the board s request. If the deficit is structural in nature, or the request represents a high financial risk that places future balanced budgets or financial statements at risk, more time may be required. 11

12 Administration and Governance Compliance with the Administration and Governance enveloping provision is also determined on this form. This form shows the board s gross expenses, third parties revenues and net expense (expenses less third party revenues). Internal audit is excluded from the net expenses and funding allocation. If the net expense is less than the board s administration and governance allocation, then the board is in compliance. Schedule 1.1: Consolidated Statement of Operations The Consolidated Statement of Operations shows the revenues and expenses on a consolidated basis. The revenues less the expenses are the annual surplus or deficit. This schedule also shows the accumulated surplus/deficit continuity. This form conforms to public Sector Accounting Board (PSAB) sections PS-1200 (Financial Statement Presentation) and PSG-4 (Funds and Reserves) with respect to the presentation of accumulated surplus. The impact of deferred capital contributions (DCC) has been added to the form as per PS-3410 (Government Transfers). 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. As per PSG-4, paragraph 10, consistent with paragraph PS , the residual amount of the statement of operations is the ending accumulated surplus/deficit unless a separate statement reconciling the beginning and ending accumulated surplus/deficit with surplus/deficit for the period is provided. In this case, the residual amount for the statement of operations is the accumulated surplus/deficit at the end of the period. Relationship to other schedules: All amounts on this schedule come from the revenue (Schedule 9) and expense (Schedule 10) schedules. Additional information on the recording of revenues and expenses are included in the instructions relating to the detailed schedules. The amortization of Deferred Capital Contribution line is part of Provincial grants Grants for Student Needs at line 1.1 Schedule 3 Capital Expenditure Budget The purpose of the form is to capture capital expenditures; however, only expenditures that are capitalized as per the School Board and School Authority Tangible +Capital Assets Provincial Accounting Policies and Implementation Guide (TCA Guide) will be recorded here. Capital expenditures 12

13 that do not meet the capitalization threshold are to be expensed, thus they will be recorded on Schedule 10. In this series of forms, the capital expenditures are compared to the approval room available in the year. The expenditures are also compared to capital allocations received as transfer payments in the year. The data in these forms will be used to populate Schedule 5.2 (Accounts Receivable Continuity Government of Ontario Approved Capital) to determine the board s receivable from the province relating to capital programs. This schedule has seven screens. Screens 1 (Capital Grant Room and Receivable) is for reporting the majority of the capital expenditures, calculating the grant entitlement, remaining approval room and capital budget shortfall. Boards report the capital expenditures in four asset classes: land, non-land, moveable type assets and capitalized interest. All these expenditures are input on this screen except moveable type assets which is input on screen 4 (Capital Expenditure Moveable Assets). Screens 2 and 3 are called Capital Grants/Funding - Deferred Revenues. Some of the capital grant/funding is flowed to the boards with specific restrictions on its use; therefore, boards should report this funding as deferred revenues as they receive it. When the boards spend it on the specified purpose, the funding can be recognized as a deferred capital contribution if the spending is on depreciable capital, or recognize as revenue if it is operating or non-depreciable capital in nature. These pages show the use of the deferred revenue against eligible expenditures and the remaining balance before transfers to revenue. The columns on these three pages represent the funding source that will be used to support the capital expenditures. Boards are to report their total capital asset expenditures during the year in the appropriate rows and columns. For example, for a capital project of $10M where $6M is funded by NPP, $3M by POD and $1M is unfunded, the board should report $3M under the POD column and $6M under the NPP column and $1M under the other column. The amounts to be included in each column relate to the following sources: Table 1: Description of Columns in Capital Expenditure Column # Column Name Amounts Included 1 NPP and GPL Other NPP relates to spending against the New Pupil Places (NPP), Best Start and Outstanding Capital Commitments. GPL Other relates to Growth Schools, Prohibitive to Repair (PTR), French Capital Transitional Adjustment and Capital Priorities programs. 2 GPL Renewal Relates to spending against the Good Places to Learn (GPL) stages 1 to 4 programs. 3 Full Day Kindergarten Relates to spending against the Full Day Kindergarten program. 4 Capital Priorities Grant Major Capital Program Relates to the funding for major capital projects funded by the Capital Priorities Grant Major Capital Program. Funding decisions will be based on the capital priority business cases submitted by the board. 13

14 5 Capital Priorities Grant Land Relates to capital priorities funding for land purchases. Funding decisions will be based on the capital priority business cases submitted by the board. 6 Temporary Accommodation Relates to spending against the Temporary Accommodation allocation, which is for the leasing costs and relocation and acquisition costs of portables. (Note that leasing costs of permanent space and portables, and relocation costs of portables are operating expenses that are reported on Schedule 10. These expenses are used in Schedule 3 to compare the capital approval room against capital expenditures on portable acquisition costs. See further details in instructions on Screen 5.) 7 School Condition Improvement Relates to spending the School Condition Improvement allocation. This allocation is to address the school renewal needs of existing school facilities; therefore, the expenditure cells for new buildings, portables and CIP are closed for input. These expenditures must to be capitalized. 7.1 Retrofitting school space for child care Relates to spending in retrofitting school space for child care as outlined in 2012 EL Memorandum 4. Please note that the funding is not included in the EFIS Estimates forms as funding has not been announced. Funding amount will be included in the Revised Estimates. 8 Minor TCA Relates to spending the Minor TCA allocation. 9 School Generated Funds Relates to spending School Generated Funds (i.e. those amounts raised by schools specifically to make a capital purchase). 10 School Renewal Relates to spending the School Renewal allocation. 11 Renewable Energy Relates to spending against the Renewable Energy Funding for Schools program. 12 Energy Efficient Schools Relates to spending against the Energy Efficiency Schools program. 13 EDC Relates to spending of Education Development Charges (EDCs). 14 POD Relates to spending of proceeds of disposition. Note to spend proceeds of disposition, the board must have approval from the Ministry. 15 Other deferred revenues Relates to spending of any deferred revenues source not 14

15 described in columns 1 to Other Relates to spending that is unfunded, i.e. no capital funding source for the expenditure or board is using operating resources to fund the expenditures. This could include the purchase of other sites, for example, for an administration site. Any interest expense on projects is reported in schedule 10, except to the extent that the interest expense needs to be capitalized per the TCA Guide. Capitalized interest includes interest costs incurred during construction until the building is substantially completed and ready for its intended use and is reported separately on item 6.4 on page 1 and 2 and on item 6.5 on page 3.. Therefore, capitalized interest will not be included in the expenditures that are recorded at items 6.1 to 6.3 on page 1 and 3 and at items 6.1 to 6.4 on page 3, if applicable. Screen 1: Capital Grant Room and Receivable Screen 1 (Capital Grant Room and Receivable) is used to compare spending on capitalized items versus the approval room. The board s receivable, if any, is calculated on this screen. Lastly, the schedule shows the remaining approval room to be used in the following year, or the capital shortfall. Columns 1 to 5 Columns 1 to 5 represent funding sources that provide an approval room under which the board can spend. Spending on capital up to the approved amount will generate a receivable from the province. Items 1 to 5 Approvals/Allocations Available for Items 1 to 4 are used to calculate item 5, the total available approval room for Item 1 (Total remaining approved amounts as at Aug. 31, 2013 as per the Revised Estimates) is the approval room available as at September 1, 2013 for existing programs. Columns 1 to 5 are populated from the Revised Estimates. Item 2 (Add adjustment) is an open cell to adjust the opening balance if required. Item 3 (Remaining approvals/allocations as at Sept. 1, 2013 (0 if negative)) equals item 1 plus item 2. Item 4 (Plus: in-year approvals/allocations) represents the expected approvals to be received in the budget year. For NPP & GPL Other (column 1) and GPL Renewal (column 2), there will be no new approvals. In-year approvals for Full Day Kindergarten (column 3) is populated. Since the funding for Capital Priorities Grant Major Capital Programs (column 4) and Capital Priorities Grant Land (column 5) are not available at this time, these amounts have been populated with $0, with amounts to be provided in the Revised Estimates, if any. Item 5 (Total available for ) equals item 3 plus item 4. 15

16 Items 6 to 6.6 Expenditures Boards report the capital expenditures by four assets categories: land, buildings, moveable type assets and capitalized interest. Grants on depreciable items go to DCC; whereas grants on non-depreciable items (ex. land) go to revenue per Public Sector Accounting Standard PS 3410 (Government Transfers). Land expenditures at line 6.1 include Land, Land Improvements with infinite lives, and Pre-Acquisition Costs for Land. Building expenditures at line 6.2 include Land Improvements with Finite Lives, Buildings, Portables, and Pre-Acquisition Costs for Non-Land Moveable type assets expenditures at line 6.3 are input on page 4 of Schedule 3 and pick up at this line. Any interest capitalized on the above capital expenditures per the TCA guide is reported on line 6.4 The total in-year capital expenditures on line 6.6 excludes capital short term interest and is compared to the approval room at line 5 to determine the grant entitlement/receivable at line 7.3. Please note that short term interest funding is provided and calculated separately in Section 11 on the eligible not permanently financed capital expenditures before it is paid or long term financed. Item 7 to 7.3 Capital Grants Receivable from the Province for These lines show the calculation of the board s capital grant receivable from the province. To the extent the board spent within its approval room, the board will record a receivable for its eligible capital expenditures. The receivable is to a maximum of the approval room. The board will input the amount of the receivable related to land expenditures on item 7.1, if any and the remaining receivable will be allocated to the non-land amount on item 7.2. Items 8 to 8.2 Remaining Approval Room The total remaining approval room is shown at item 8.2. An amount is shown here if capital expenditures at item 6.3 and item 8.1 were within the approval room calculated at item 5. Item 8.1 (Approved eligible FDK related operating expenses) comes from Section 11 (Pupil Accommodation Allocation), item This amount represents operating expenses related to FDK that reduce the remaining approval room at item 8.2. Items 8.3 to 8.6 Capital Budget Shortfall The total capital budget shortfall is shown at item 8.6. The capital budget shortfall is split into land and non-land which will be shown if the capital expenditures at items 6.1 and 6.2 exceeded the capital grants receivable at items 7.1 and 7.2 respectively.. A capital budget shortfall on land will be further tracked in Schedule 5.6A (Continuity of Revenues Recognized for the Purchase of Land) and Schedule 5.6B (Capital Deficit on Land). A capital budget shortfall on non-land (i.e. depreciable assets) will be further tracked in Schedule 5.3 (Deferred Capital Contributions Continuity). Screen 2 and 3: Capital Grants/Funding - Deferred Revenues Columns 6 to 15 represent funding sources that are capital deferred revenues, which fund capital 16

17 expenditures including land. These are amounts that have been received up-front in cash, but have not yet been spent on capital. Spending in these categories will not generate a receivable from the province. Column 16 represents unfunded capital expenditures which have no capital funding source for the expenditure or board is using operating resources to fund the expenditures. These expenditures will create a capital budget shortfall. Overspending in Other Deferred Revenue It may occur that a board overspends in one other deferred revenue category, but has another type of other deferred revenue available. If this situation occurs, the board should record the overspending in column 16, the other category, NOT the other deferred revenue category. If the board does not do this, then the overspending will come of another other deferred revenue category, for which the spending was not authorized. For example, assume a board has the following: Other deferred revenue #1 balance = $100 Other deferred revenue #2 balance = $300 Assume the board spends $125 on a project applicable only to the other deferred revenue #1 category. The board should enter spending of $100 in the other deferred revenue category, and then enter the overspending ($125 - $100 = $25) in the other category. Items 1 to 5 Capital Grants/Funding Available for Items 1, 2, 3, and 4 are used to calculate item 5, the total deferred revenues available for at the beginning of Items 1 and 2 apply to School Renewal, School Condition Improvement, Retrofitting school space for child care, School Generated Funds, Renewable Energy, Energy Efficient Schools, EDC, POD and Other capital deferred revenues as of August 31, 2012 for these nine sources. The amounts at item 1 are populated from the Revised Estimates. Item 2 is an open cell to adjust the opening balance if required. Item 3 (Deferred revenue balance as at September 1, 2013) is equal to item 1 plus item 2. These amounts are populated as opening balances in Schedule 5.1 Item 4 (Plus: in-year capital grants/funding plus interest earned on deferred revenue, if applicable) is the total of the contributions received in-year plus the earnings on deferred revenue for each applicable capital deferred revenue category. These amounts are populated from Schedule 5.1 (Deferred Revenue). Item 4.1 to 4.3 apply to Temporary Accommodation only. Boards report the leasing and relocation cost related to portable and permanent instructional space funded by this allocation, these expenses will be deducted from the available allocation and the remaining allocation will be available for portable purchase. 17

18 Item 6.1 to 6.6 Expenditures Boards report the capital expenditures by four assets categories: land, buildings, moveable type assets and capitalized interest. Grants on depreciable items go to DCC; whereas grants on non-depreciable items (ex. land) go to revenue per Public Sector Accounting Standard PS 3410 (Government Transfers). Land expenditures at line 6.1 include Land, Land Improvements with infinite lives, and Pre-Acquisition Costs for Land. Building expenditures at line 6.2 include Land Improvements with Finite Lives, Buildings, Portables, and Pre-Acquisition Costs for Non-Land Moveable type assets expenditures at line 6.3 are input on page 4 of Schedule 3 and pick up at this line. Any interest capitalized on the above capital expenditures per the TCA guide is reported on line 6.4 The total in-year capital expenditures on line 6.5 including capitalized short term interest and is compared to the approval room at line 5 to determine the amount of deferred revenues that can be recognized as revenues at item 7. Item 7 Application of Capital Deferred Revenue This category is divided into land and non-land, and shows the amount of deferred revenue applied to land or non-land expenditures. At item 7.1, indicate the portion of capital deferred revenue to be applied towards spending on land. For column 13 (EDC), the application of deferred revenues is populated under the use for land at item 7.1 which will be reduced by any use of deferred revenues for EDC related operating expenses input at item 7.3. For columns 6 (Temporary accommodation), 7 (School Condition Improvement), 7.1 (Retrofitting school space for child care), 9 (School Generated Fund), 10 (School Renewal), 11 (Renewable Energy), 12 (Energy Efficient Schools), 14 (POD) and 15 (Other deferred revenues), these deferred revenues can be applied to land or non-land spending. Unless the funding sources specifically allow the use of fund to purchase land, typically the land expenditures allowed under these funding sources are for land improvement only. The board will input the amount of the deferred revenues applied to land expenditures on item 7.1, if any and the remaining deferred revenuese will be allocated to the non-land amount on item

19 Items 8.1 to 8.3 Capital Budget Shortfall The total capital budget shortfall is shown at item 8.3. The capital budget shortfall is split into land and non-land which will be shown if the capital expenditures at items 6.1 and 6.2 exceeded the capital grants receivable at items 7.1 and 7.2 respectively.. A capital budget shortfall on land will be further tracked in Schedule 5.6A (Continuity of Revenues Recognized for the Purchase of Land) and Schedule 5.6B (Capital Deficit on Land). A capital budget shortfall on non-land (i.e. depreciable assets) will be further tracked in Schedule 5.3 (Deferred Capital Contributions Continuity)The closing deferred revenue balance is tracked on Schedule 5.1 (Deferred Revenue) Screen 4: Capital Expenditures Moveable Assets The rows in this screen represent the categories that fall within the criteria for asset capitalization as stated in the TCA Guide for moveable type assets (ex. computer hardware, software and vehicles). The columns represent the funding source that will be used to support the capital expenditures. Boards are to report their total capital asset expenditures during the year in the appropriate rows and columns. Note that Other moveable type assets include all other categories not specifically detailed on the form (i.e. 5, 10 and 15 year equipment and first-time equipping). Screen 5: Capital Expenditures New Schools 40 Years The rows in each screen represent New Schools 40 Years. The columns represent the funding source that will be used to support the capital expenditures. Boards are to report their total capital asset expenditures during the year in the appropriate columns, with each line representing a school. For expenditures under Capital Priorities Grant - Major Capital Programs, only report expenditures related to new school projects, any expenditures for projects such as additions should be reported on screen 6 and not on this screen. Any interest expense on projects is reported in schedule 10, except to the extent that the interest expense needs to be capitalized per the TCA Guide. Capitalized interest includes interest costs incurred during construction until the building is substantially completed and ready for its intended use. Therefore, capitalized interest will be included in the expenditures that are recorded on this schedule, if applicable. Screen 6: Capital Expenditures Capital Priorities Grant Major Capital Programs This new page captures the capital expenditures by project funded under Capital Priorities Grant Major Capital Programs, the information will be used to verify the capital expenditure claims for capital grant payment purposes. Approved Projects with the approved amount and associated regulation reference will be pre-loaded in column 1 to column 3 at items 1.1 to 1.12, boards will report the cumulative expenditures up to August 31, 2013 in column 4 to column 6 at items 1.1 to In-year expenditures are reported in column 11 to column 13 at items 2.1 to 2.12 and will be picked at items 6.1 to 6.3 in column 4 of screen 1 of this schedule. 19

20 Screen 7: Capital Expenditures Capital Priorities Grant Land This new page captures the capital expenditures by project funded under Capital Priorities Grant Land, the information will be used to verify the capital expenditure claims for capital grant payment purposes. Approved Projects with the approved amount and associated regulation reference will be pre-loaded in column 1 to column 3 at items 1.1 to 1.6, boards will report the cumulative expenditures up to August 31, 2013 in column 4. In-year expenditures are reported in column 5 and will be picked at item 6.1 in column 5 of screen 1 of this schedule. Relationships to Other Schedules: The total capital expenditures for the year on Schedule 3 (Screens 1 to 3, item 6.6), equals the total additions and betterments on Schedule 3C (Tangible capital asset continuity). The total of the Capital Shortfalls on Schedule 3 Capital grant room and receivable, screen 1 item 8.5 (columns 1 to 4) and Capital Grants/Funding - Deferred Revenues Screen 2 item 8.2 (columns 6 to 9) and Screen 3 item 8.2 (columns 10, 11, 12, 14, 15 and 16) represent the capital shortfall on depreciable assets. It equals the difference between the additions to tangible capital assets (TCA) and the additions to deferred capital contributions (DCC) on Schedule 5.3 (DCC Continuity), column 2, item 2.2. The total of all Capital Budget Shortfalls on Schedule 3 Capital grant room and receivable, Screen 1 item 8.4 (columns 1 to 5) and Capital Grants/Funding - Deferred Revenues, Screen 2, item 8.1 (columns 6 to 7.1 and9) and Screen 3 item 8.1 (columns 10 to 16) represent the capital budget shortfall on land expenditures. This amount will form part of the cumulative capital deficit on land for the year ending August 31, 2013 on Schedule 5.6B (Capital deficit on land) at item 2.4. Since the capital deficit on land is calculated on a cumulative basis, the in-year capital deficit on land is not visible on schedule 5.6A. Schedule 3C Tangible capital asset continuity schedule Amounts that are capitalized as per the TCA Guide and are accounted for under Public Sector Accounting Standard PS 3150 will be recorded on Schedule 3C. The land, building, construction in progress and pre-construction/pre-acquisition activities by assets in the school year are reported to the Ministry through the Asset Upload process in the Financial Statements. In the Estimates and Revised Estimates, boards will enter these activities. In the Financial Statements, details on the process will be posted on the FAAB website and the summarized information will be preloaded in Schedule 3C. For any assets not captured in the Asset Upload process, boards should report the capital activities in this schedule. Schedule 3C has three sections: Cost (Screen 1), Accumulated Amortization (Screen 2), and Net Book Values and Disposals (Screen 3). 20