1. 0 PUT TITLE HERE The New Reporting Model and Sample Forms Information Session for School Board Finance Staff and External Auditors Transfer Payments & Financial Reporting Branch Fall 2008

2. 1 Financial Reporting Model - Why??  2 models of accounting in PSAB Handbook –Senior government reporting –Local government reporting  Background –Statement of Principles - September 2005 –Exposure Draft - March 2006 (for comment) –Exposure Draft - November 2006 (approved)  Accounting Standards –PS 1000, PS1100, PS1200 - Senior –PS1700, PS1800 - Local (deleted effective Jan 1, 2009)

3. 2 Financial Reporting Model - What is it??  Sets out the rules, parameters and content requirement that prescribe what must be presented in the financial statements –the NUMBER, TYPE and FORMAT of the FS; –WHAT is to be reported; –WHEN it should be reported and –the NOTES that are required with the financial statements  PS 1000, PS1100, PS1200

4. 3 Implementation Time Frame  2008-09 DSB Financial Statements (Nov 09) - Restatement of 2007/08 balances  2009-10 DSB Estimates (Jun 09)

5. 4 Key Features of New Model  5 “Messages” about DSB finances: Indicators of Financial Position 1. Net Debt 2. Accumulated surplus/deficit Indicators of Changes in Financial Position 3. Annual surplus/ (deficit) 4. Change in net debt 5. Cash Flows  Moves away from a one-dimensional focus on surplus/deficit

6. 5 What’s New? PSAB Changes  Statement of Financial Position (page 2) –Tangible capital assets –Reserve Funds and Amounts to be Recovered (ATBR) are gone –Indicator # 1: Net Debt –Indicator # 2: Accumulated Surplus / (deficit)  Statement of Operations (page 3) –Replaces Statement of Financial Activities –Gone are changes in prepaid expenses and changes in ATBR –Includes amortization expense –Requires budgeted numbers –Indicator # 3: Annual surplus/ (deficit)

7. 6 What’s New? PSAB Changes  Statement of Changes in Net Debt - New (page 4) –Capital expenditures –Requires budgeted numbers –Indicator # 4: Change in Net Debt  Statement of Cash Flow (page 5) –replaces Statement of Changes in Financial Position –New capital section –Indicator # 5: Cash Flows

8. 7 What’s New ? Ministry of Education Changes  Schedule 1.2 - Detail of Acc. Surplus (page 6) –New schedule – not a required form per GAAP –Somewhat replaces our old “FUNDS” reporting » Old Schedule 5 (page 13) –Explains what the Accumulated Surplus/Deficit is composed of –Explains pieces of the Annual Surplus/Deficit  Schedules 2.1 & 2.2 - Operating Fund & Capital Fund (pages 7 & 8) –Grants for students needs separated (page 31) –Annual surplus / (deficit) on 2.1 = compliance position

9. 8 What’s New ? Ministry of Education Changes  Schedules 2.3 & 2.4 - Reserve Funds & School Activity Funds (pages 9 & 10) –Schedules are gone  Schedule 3 - Capital Expenditures (pages 11 & 12) –Page 1 is gone  capital expenditures –Page 2 needs to be revamped  Schedule 8 - TCA Continuity (pages 16 - 18) –By major asset class –Cost table –Accumulated amortization table –Inter-entity TCA transactions

10. 9 What’s New ? Ministry of Education Changes  Schedule 9 - Revenues (pages 19 - 22) –Reorganization of schedule to align with statement of operations groupings –Includes all sources of revenue –Segregation of capital & operating type revenues  Schedule 10 - Expenses (pages 23 & 24) –Expenses and not expenditures –Schedule 3 disappears –Includes amortization expense –Same changes brought to Schedules 10.1, 10.2, 10A & 10B

11. 10 What’s New ? Ministry of Education Changes  Schedule 10ADJ - Compliance Schedules (pages 25 & 26) –Schedule gone / part of Schedule 2.1  Section 1 - Summary of Allocations (page 31) –Segregation of capital type grants from operating type grants

12. 11 Useful Reference Document 20 Questions about Government Financial Reporting  http://www.psab-ccsp.ca/index.cfm/ci_id/18658/la_id/1  Published in 2003  Refers to Senior Levels of Government but still applicable

13. 12 Other  Hoping to finalize forms by December  Hands-on training sessions Feb / March 2009 –Video-conference + live in 1 central location  Constructive Comments & Feedback Doreen Lamarche Senior Business & Policy Analyst (613) 225-9210 x.113 Doreen.lamarche@ontario.ca