1 Capital Analysis & Planning Template V4 Fall 2014 Capital Policy & Programs Branch/Financial Analysis and Accountability Branch Ministry of Education

2 Purpose:  Review Changes Implemented for V4  Provide a Detailed Walk-Thru  Changes to Approval To Proceed Process  Review of Approval to Proceed Request Form

3 Capital Analysis and Planning Template (CAPT) Purpose  Tracking system for capital projects  Monitor boards Unsupported Capital Spending and overall Capital Surplus/Deficit position.  Unsupported Capital Spending: −TCA less DCC excluding land as per Schedule 5.3  Capital Position (Surplus/Deficit): −Unsupported Capital Spending less any revenue applied in the year as per Table 4a on the CAPT.  Renewal/POD encumbrance  Committed Accumulated Surplus  Support Tool for Capital Discussions  Assessing financial implications at the Approval To Proceed stage  Determining OFA long-term financing eligibility.  RBP(Results Based Plan)- Ministry Forecasting

4 Improvements Implemented for V4  Simplified the ATP process for the boards  Improved functionality

5 CAPT V4 Changes – General  Formatting  Bilingual Worksheets  Worksheet Name Changes  FIN-FR - Capital Financial Position  FIN-SR - School Renewal Schedule  POD-S - Proceeds of Disposition - School Sites  POD-A - Proceeds of Disposition - Admin Sites  PRO-M - Master Capital Projects (Active + Completed) – READ ONLY  PRO-A - Active Capital Projects  DEB - Project Debenture Matrix  OFA-1 - OFA Debenture Financing Request  OFA-2 - OFA Debenture Financing Request

6 CAPT V4 Changes – Project Eligibility Worksheet  Project Eligibility Worksheet name changed:  PRO-M (Project Master) – Listing of All Projects - Locked  PRO-A (Project Active) – Listing of Projects that are not completed such that they meet the following criteria:  $ Value in either NPF or Amounts to be Constructed  Boards will only be required to enter data on PRO-A worksheet only  Added ATP Section for the following:  1. ATP Date  2. ATP Amount  Consolidated:  GPL – Other (Col 10.2)  $120M Capital Funding (10.3)  Ministry funding columns agrees to the GSN Regulations  FDK Allocation column now agrees to the GSN Regulation and also includes Year 1-4 First Time Equipping and Year 5 estimated First Time Equipping

7 CAPT V4 Changes – Financial Position & Recovery/ POD  POD worksheets:  Added lines to report break-down information of committed POD by projects during  School Renewal Schedule: New  Boards are required to complete this worksheet if a project is: −Reported in unsupported capital spending and is funded by renewal  Financial Position & Recovery Worksheet name changed to Capital Financial Position  Added new Table 1c – capital activities post-Aug 31, 2014 by projects  Automated Table 4a SF interest earned to date cell which agrees to Sch 5 line balance  Added new funding sources: SCI & 3 rd party revenue  Updated Table 5 School Renewal Encumbrance

FIN-FP: Capital Financial Position Worksheet

Capital Financial Position Worksheet: Overview Left-hand side Unsupported Capital Spending Right-hand side Board’s Revenue Sources

Section A: Table 1

FS EFIS: Schedule 5.3

Section A: Table 1 Unsupported capital spending balances as Aug 31, 2014 including: – sinking fund interest to be earned – depreciable assets excl. minor TCA – minor TCA – others Note: The total of the above unsupported capital spending = EFIS Schedule 5.3 Lines 2.1.1, & 2.2 Col. 7 Capital deficit on Land (Non-EDC) as Aug 31, 2014 = FS EFIS, Schedule 5.6B, Line 2.4 Col. 2 Capital activities post Aug 31, 2014 –Amounts to be constructed at Aug 31, 2014: pre-loaded from Active Project Worksheet –Approved : Ministry will update when ATP submitted –Requested: Ministry will update when ATP submitted

Section B: Table 1a, 1b & 1c

Table 1a – Boards to report depreciable assets requiring board’s funding by project. –Example: In this demo, the board has $7.2M depreciable assets excl. minor TCA in Table 1 which should be reported in Table 1a and indicate the corresponding funding sources for each project. Table 1b - Boards to report minor TCA projects requiring Board’s funding by project. –Example: In this demo, the board has $2.0M minor TCA in Table 1 which should be reported in Table 1b and indicate the corresponding funding sources for each project. Table 1c (New) - Boards to report any capital activities post YE by project. Note: the balances in Table 1a, 1b & 1c should agree to the corresponding lines in Table 1 above. New in CAPT v4 –Funding sources: added drop-down box –Comment box

Section C: Tables 2, 3a & 3b

Table 2 – No change in this table. Board to report the Accumulated Surplus information. –Mirror to the FS EFIS Schedule 5 Note: If a board has any committed Accumulated Surplus for future capital activities, and the capital spending has not yet been incurred and reported in the CAPT Table 1; the board should deduct the Accumulated Surplus amount in the cell (N26). Table 3a/3b – No change in these two tables. Proceeds of disposition information is pre-loaded from the POD-S/A worksheets.

Section D: Table 4a & 4b

Table 4a – the most important table in this worksheet!!! –The purpose of this table is to calculate the board’s capital surplus/(deficit) position at the time of submission by summarizing Tables 1-3b Table 4b – The purpose of this table is to calculate the board’s capital surplus/(deficit) position after applying anticipated future revenue sources New in the CAPT v4: Added two new funding sources in table 4a/4b: School Condition improvement & 3 rd party revenue Automated the Sinking Fund interest earned to date cell, which is now linked to Table 2 committed sinking fund interest line (EFIS Sch 5 line 2.8.1) Added comment box in each table

Section E: Table 5

Table 5 – School renewal grant encumbrances. This table is linked to the new School Renewal Schedule worksheet to show the total available school renewal grant and encumbrances amount & percentage in and next 5 years.

Examples

FIN-FP: Examples Active Project Worksheet Capital Financial Position Worksheet

Example 1: Ontario High School Capital Financial Position Worksheet School Renewal Schedule Worksheet Ontario High School Project requires $500,000 Future School Renewal Grant FIN-FP worksheet Table 4b Cell P83 – automatically pre-load the amount from FIN-SR worksheet Cell E35

Example 2: Richmond Public School o Richmond Public School requires total of $6.5M board funding: POD = $ 5.0M POD-S worksheet committed use of POD $5.0M and amount will be transferred to FIN-FP worksheet Table 3a & Table 4a Accum. Surplus = $ 1.0M EFIS Sch 5.5 & 5 and Table 2 Committed Capital Projects 3 rd Party Revenue (Future) = $ 0.5M Table 4b and provide explanation in the comment box Active Project Worksheet

25 Common Issues – Year End  Common Issues:  CAPT submitted with Red Error Messages  Financial information does not agree to EFIS (ie. NPF column total in the Project Active worksheet has to reconcile with Section 12 of EFIS –Line 12.37)  Year End Submission:  Anticipated release of the CAPT V4 is late September and it is required to be submitted to the Ministry by November 28th,  As in previous years, this submission includes board’s request for long- term financing with the Ontario Financing Authority (OFA).

26 New - Process – Approval To Proceed (ATP)  Approval To Proceed Submission as of October 1, 2014  When boards submit a request for approval to proceed to tender for a project, they will no longer be required to submit the CAPT.  Boards are now required to complete the Approval to Proceed (ATP) Request Form. −Will be posted on the FAAB website −Boards to submit to Ministry Capital Analyst and Financial Analyst  Once the ATP request is completed, your Capital Analyst will update the CAPT and send an updated copy.

Assistance:  Training Manual for the CAPT will be posted on the FAAB website. It includes detailed instructions for completing the CAPT  Capital Analysts and Financial Analysts are also available to assist boards in completing the CAPT ( 27 For Questions Regarding…Contact… Capital Financial Position School Renewal Proceeds of Disposition Project Master – Project Active Project Debenture Matrix OFA Request Form (Part 1 & 2) ATP Request Form Financial Analyst Capital Analyst Diamond Tsui Capital Analyst