1 Financial Reporting Updates for Estimates School Generated Funds & BPS Supply Chain Guideline Forms March 4 th, 2010 OASBO Finance Workshop

2 Purpose  The purpose of this presentation is to provide an overview of selected changes to the Estimates Forms relating to: –the financial reporting of School Generated Funds, –compliance with the Broader Public Sector Supply Chain Guideline

3 Changes to Financial Reporting: Rationale  School board financial statements provide very limited information on school generated funds. »No information on revenue or expenditure components which total $596M province-wide »Additional reporting requirements builds on the OASBO Finance Committee – Guidelines for School Generated Funds.  Additional information on school generated funds in a school board’s financial reporting will: »in no way alter the existing control and management of school generated funds and activities; »nor alter a school’s ability to use the funds for the purpose for which they were raised.

44 Changes to Financial Reporting: Components  School Boards will report five revenue and five expense components (see below) by elementary and secondary beginning with the school year.  Supplementary information, not subject to audit.  The audited financial statements will continue to report school generated funds as a single revenue line and a single expense line in the Statement of Operations.  EFIS Forms will be updated with the new requirements in the estimates. Revenue ComponentsExpenditure Components Field trips/excursions (including admission, transportation and accommodation) Capital asset fundraisingCapital assets Fundraising for external charitiesDonations to external charities Student activities and resources (including fees) Student activities and resources (including school resources and supplies, library resources, sporting activities) Other

5 Draft EFIS Form Layout

6 Definitions: Revenue Components  These categories were taken in large part from the Chart of Accounts in the OASBO Finance Committee’s Guidelines for School Generated Funds – Chart of Accounts pg  Field trips/excursions (including admission, transportation and accommodation) »All monies raised/received to support the costs of in province or out of country excursions or any field trips (including admissions, busing and accommodations). »Examples – trips to Science Centre, farm visit, museum trip, trip to Greece.  Capital asset fundraising »All monies raised/received for the purchase of capital assets. If funds are received for the specific purpose of purchasing a capitalizable asset, the purchase of that asset would be recorded here. (Even if funds were raised for library resources or supplies, if these items are capitalizable, they default to the capital asset category first). »Examples – fundraising towards the construction of playgrounds, school gardens.  Fundraising for external charities »All money raised/received in support of an external charity where the school provides the administrative process for collecting the funds. This charity would be registered with the Canada Revenue Agency. »Examples - Terry Fox Run, United Way.  Student activities and resources (including fees) »All money raised/received related to student activities and resources such as activity fees, support for student council/governments, events, resources or materials. »Examples: student activity fees, support for extracurricular activities, graduation funds, student clubs.

7 Definitions: Expenditure Components  Field trips/excursions (including admission, transportation and accommodation) »Costs associated with out of province or out of country excursions, or any field trips, including for admissions, busing and accommodations) »Examples – trips to Science Centre, farm visit, museum trip, trip to Greece.  Capital asset fundraising »Costs of the purchase of capital assets. »Examples – purchase of playground equipment.  Fundraising for external charities »Support of an external charity where the school provides the administrative process for collecting the funds. This charity would be registered with the Canada Revenue Agency. »Examples - Cheques provided to the Cancer Society, United Way.  Student activities and resources (including fees) »Costs associated with student activities and resources. »Examples: purchase of locks, purchase of team uniforms. Other Category for both revenue and expenditure »Will include all items that do not fit under categories above. »Examples: general fundraising by the school or school council, interest on accounts

8 Broader Public Sector Supply Chain Guideline  The Ontario Ministry of Finance released the Broader Public Supply Chain (BPS) Guideline in April »School boards are required to implement a Supply Chain Code of Ethics and 25 Procurement Practices and Procedures by March See  As outlined in memorandum 2009: SB28 ( boards are to review the guideline and ensure its existing procurement Code of Ethics and Procurement Practices and Policies are compliant.  The Ministry has added a Supply Chain Guideline compliance requirement to the master Transfer Payment Agreement that is used for all school boards' funding agreements.  In addition, the Ministry is required to report on the compliance of school boards on the implementation of these requirements to the Ministry of Finance. As a result, an attestation will be included in the Estimates package.

9 Draft Compliance Form  The following data fields will be included in the Compliance Report section of EFIS in the Estimates Package: »The ____ District School Board has reviewed existing procurement Code of Ethics and procurement practices and policies for compliance with the 25 mandatory requirements and Supply Chain Code of Ethics in the Supply Chain Guideline – Yes/No »The ___ District School Board is compliant with the required Supply Chain Code of Ethics and the 25 mandatory requirements listed in Supply Chain Guideline – Yes/No –If no, the ___ District School Board will be compliant by (Insert Date) »The ___ District School Board has posted procurement policies and a code of Ethics on the school board’s website. Yes/No –If no, these policies will be publicly available on the school board’s website by (Insert Date)

10 Next Steps School Generated Funds  Release of draft fundraising, fees for learning materials and corporate partnerships guidelines to school boards, stakeholders, parent and student groups – Spring 2010  EFIS reporting new form part of Estimates  Release of guidelines to sector via B memorandum – Fall 2010 for implementation in school year. BPS Supply Chain Guideline  Release of Supply Chain Guideline 2.0 from Ministry of Finance (minor changes only). Additional toolkits forthcoming.  Future requirement may include very limited metrics reporting e.g. % of total spend through collaborative purchasing initiatives. Still under review, earliest timeline – Spring 2011.

11 Questions/Contact Jeanette Robinson Tel: Senior Financial Analyst Financial Analysis and Accountability Branch Ministry of Education 21st Floor Mowat Block, 900 Bay Street Toronto ON M7A 1L2