0 PUT TITLE HERE TCA Implementation /08 FS Note Disclosure - Data up to March 31, month period (Sep 08 - Mar 09) - 12 month period (Sep 08 - Aug 09) - Revisions to TCA guide Information Session for School Board Finance Staff and External Auditors Transfer Payments & Financial Reporting Branch Fall 2008

1 PUT TITLE HERE Financial Statement Note Disclosure

2 TANGIBLE CAPITAL ASSET NOTE DISCLOSURE  Public Sector Handbook Section PS 3150 requires boards to report for fiscal years beginning on or after January 1, 2009: » Historical cost » Accumulated Amortization of tangible capital assets of tangible capital assets  PSG-7 requires government to disclose information on tangible capital asset information that is available during the transitional period

3 TCA CONTINUITY SCHEDULE  Schedule ? in EFIS summarizes information required to be disclosed in the notes to financial statements  Schedule has two sections: » Land and Building Assets » Other Tangible Capital Assets  Schedule does not have to be audited

4 LAND AND BUILDINGS  Information is preloaded using the information submitted to the Ministry in the 5 and 7 Month Capital Activity Excel files beginning March 2005 to March 2008

5 OTHER TANGIBLE CAPITAL ASSETS  Includes Furniture, Equipment, Computers, and Vehicles  Boards can complete this schedule and disclose information if it is available  Boards are not required to disclose this information in the Financial Statements if it is not available; however this information will be required for

6 EXAMPLE  Gross Book Value Section: –Combine “Additions” and “Transfers” columns from EFIS schedule and include in “Additions” Column in the note schedule  Amortization Section: –Combine “Write-offs & Adjustments” and “Disposals” columns from EFIS schedule and include in the “Disposals, Write-offs, & Adjustments” column in the note schedule  Disclose assets Permanently Removed from Service and Write-Offs separately

7 PUT TITLE HERE TCA Implementation - Review of Data Up to March 31, 2007

8 Data  What is it? –March 31, 2005 to March 31, 2007 –Data output from BVC (as of March 31, 2005) + following data collection periods: » April 2005 to August 2005 » September 2005 to March 2006 » April 2006 to August 2006 » September 2006 to March 2007 –Buildings, portables, land and land improvements –Different tabs for each asset type (does not include CIP, PAC/PCC)  Where is it ? –EFIS –Go to submission….Reports….Static Reports » March 31, 2005 to March 31, 2007 Capital Asset Data

9 Where to start ?  Access file –Manipulate data to suit you  Excel File contains 10 tabs 1) Buildings & Land Definitions 2) Portables Definitions 3) Buildings & Land Input File 4) Portables Input File 5) Buildings & Land Output File 6) Portables Output File 7) Buildings Continuity 8) Land Continuity 9) Land Improvement Continuity 10) Portables Continuity Input into BVC Output from BVC Calculations will be provided shortly

10 Where to Focus BVC Input BVC Output Excel Data Data at March 31, 2007 = Land Buildings Portables Land Buildings Portables Land Improvements

11 Where to Focus BVC Input - Year of purchase - GFA - Building condition - Cost Portables: - Year of manufacture - GFA Land Buildings Portables

12 Where to Focus BVC Output X Don’t Audit the Black Box Don’t try to replicate the values

13 Where to Focus Excel Data -Additions / disposals by cycle -Ask auditors what additional work they will require -Get together back-up Land Buildings Portables Land Improvements

14 Where to Focus Data at March 31, Asset Type - RSL - GBV - AA FOR REASONABLENESS MISTAKES Contact Ministry: -Look at groups of assets, not one at a time -Form for missed assets

15 Where to Focus BVC Input BVC Output Excel Data Data at March 31, 2007 = - Year of purchase - GFA - Building condition Portables: - Year of manufacture - GFA -Additions / disposals by cycle -Ask auditors what additional work they will require - Asset Type - RSL - GBV - AA X FOR REASONABLENESS Land Buildings Portables Land Buildings Portables Land Improvements

16 Additional Information  For additional information, please refer to the following website:  Contact: Sangita Barman

17 PUT TITLE HERE 7 Month Period (September 2008 – March 2009)

18 REPORTING REQUIREMENTS  Paragraph.13 of Asset Guide we indicated that the last period that we would be collecting capital asset information from boards is April – August 2008 period  Amending this paragraph as we will be asking board to complete a 7 Month Capital Activity Report for the September 2008 to March 2009 period

19 SUBMISSION REQUIREMENTS  No change  Require: –Specified Procedures –7 Month Excel Capital Activity Report  Due Date: May 15, 2009

20 PUT TITLE HERE 12 Month Period (September 2008 – August 2009)

21 Tangible Capital Asset Data Collection  Ministry will be collecting summarized tangible capital asset information from school boards in order to support their continuity schedules  File Format: –Pipe Delimited File –Require details on an asset by asset basis  This file will be uploaded into EFIS  Details being discussed by the Ministry: –Process of assigning of new asset id numbers to assets

22 PUT TITLE HERE Revisions to TCA Guide

23 FIRST TIME EQUIPPING ASSET CLASS  In Appendix C of the Asset Guide (page 51 of 81 – May 2008 Release) we stated that: –“First time equipping costs should NOT include computer hardware and computer software, excluding those in the classroom.”  Amending this to state that: –“First time equipping costs should NOT include computer hardware and computer software.”

24 LEASEHOLD IMPROVEMENTS  Paragraph.236 we state that: –“Betterments made to an asset subject to a capital lease where ownership is expected to transfer to the lessee, should be classified as betterments. The cost of the betterments must be capitalized as part of the cost of the tangible capital asset and amortized over the lease term.”

25 LEASEHOLD IMPROVEMENTS  Amending this paragraph to state: –“Betterments made to an asset subject to a capital lease where ownership is expected to transfer to the lessee, should be classified as betterments. The cost of the betterments must be capitalized as part of the cost of the tangible capital asset and amortized over the useful life of the asset.”

26 QUESTIONS Sangita Barman