Microsoft › pubsask-pr… · Web viewThe net pension liability (asset) is the difference between the value of the accrued benefit obligation and the market value of related pension

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“SCHOOL DIVISION NAME” SCHOOL DIVISION NO. ###NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As at August 31, 2018

USE OF THE SAMPLE DISCLOSURE NOTES WHEN PREPARING CONSOLIDATED FINANCIAL STATEMENTS

Preamble:

The following are sample notes to the consolidated financial statements. Additional guidance, clarifications and PSAB references have been provided alongside the notes in the Financial Reporting Manual (FRM) - http://www.saskatchewan.ca/government/education-and-child-care-facility-administration/services-for-school-administrators/school-division-financial-administration#financial-reporting

Application of Sample Notes:

School divisions should use the sample notes in the preparation of their consolidated financial statements as follows:

School divisions should include in their consolidated financial statements those sample notes that are applicable to the circumstances of their division.

School divisions should not include any consolidated financial statement that is not applicable to the school division’s circumstances (e.g. a school division would not include the consolidated statement of remeasurement gains and losses if it does not have any material unrealized gains or losses to report).

School divisions should not include any notes that are not applicable to the school division’s circumstances (e.g. a school division would not include the sample note for long-term debt if it does not have any long-term debt). The yellow text boxes contain additional guidance as to when certain notes may or may not be applicable to the circumstances of the individual school division. These boxes are only contained in sections that caused confusion in previous years and are not all inclusive to each and every section.

In some circumstances a school division should choose among multiple note disclosure options based on the individual circumstances of the division. Blue text boxes outline situations where options are to be chosen.

School divisions should modify the notes where required, in order to reflect the school divisions’ own circumstances. The yellow text boxes provide additional disclosure options to use when those circumstances arise.

School divisions should provide additional note disclosures where warranted in order to reflect school divisions circumstances not addressed in the sample notes.

School divisions should review formatting (fonts, page breaks, indentation, etc) and table appearances (borders, column/row sizing, green error triangles, etc) prior to submitting the consolidated financial statements for ministry review.

http://www.saskatchewan.ca/government/education-and-child-care-facility-administration/services-for-school-administrators/school-division-financial-administration#financial-reporting



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1. AUTHORITY AND PURPOSE

The school division operates under the authority of The Education Act, 1995 of Saskatchewan as a corporation under the name of “The Board of Education of the (name of school division) School Division No. (SD number)” and operates as “the (name of school division) School Division No. (SD number)”. The school division provides education services to residents within its geographic region and is governed by an elected board of trustees. The school division is exempt from income tax and is a registered charity under the Income Tax Act.

2. SIGNIFICANT ACCOUNTING POLICIES

These consolidated financial statements have been prepared in accordance with Canadian public sector accounting standards for other government organizations as established by the Public Sector Accounting Board (PSAB) and as published by the Chartered Professional Accountants of Canada (CPA Canada).

Significant aspects of the accounting policies adopted by the school division are as follows:

a) Basis of Accounting

The consolidated financial statements are prepared using the accrual basis of accounting.

b) Reporting Entity and Consolidation

The school division reporting entity is comprised of all the organizations which are controlled by the school division and the school division’s share of partnerships.

Controlled Entities

Control is defined as the power to govern the financial and operating policies of another organization with the expected benefits or risk of loss to the school division. Control exists so long as the school division has the power to govern, regardless of whether the school division chooses to exercise this power.

All of the assets, liabilities, revenues and expenses of controlled organizations are consolidated line-by-line after adjusting the accounting policies to a basis consistent with the accounting policies of the school division. Inter-organizational transactions and balances have been eliminated.

If the school division has controlled entities, please use the following note disclosure:

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Partnerships

A partnership represents a contractual arrangement between the school division and a party or parties outside the school division reporting entity. The partners have significant, clearly defined common goals, make a financial investment in the partnership, share control of decision making, and share, on an equitable basis, the significant risks and benefits associated with the operations of the partnership.

Partnerships are accounted for on a proportionate, consolidation basis whereby the school division’s pro-rata share of the partnership’s assets, liabilities, revenues and expenses are combined on a line-by-line basis after adjusting the accounting policies to a basis consistent with the accounting policies of the school division. Inter-company balances and transactions between the school division and the partnership have been eliminated.

These consolidated financial statements contain the following partnerships:

Partnership # 1 (consolidated %) (2017 – consolidated %)Partnership # 2 (consolidated %) (2017 – consolidated %)Partnership # 3 (consolidated %) (2017 – consolidated %)

c) Trust Funds

Trust funds are properties assigned to the school division (trustee) under a trust agreement or statute to be administered for the benefit of the trust beneficiaries. As a trustee, the school division merely administers the terms and conditions embodied in the agreement, and it has no unilateral authority to change the conditions set out in the trust indenture.

Trust funds are not included in the consolidated financial statements as they are not controlled by the school division. Trust fund activities administered by the school division are disclosed in Note 18 of the consolidated financial statements.

List controlled entities, (such as charitable organizations, foundations, etc., if applicable), that comprise the consolidated financial statements.

If the school division has partnerships, please use the following note disclosure:

If the school division does not have any trust funds do not include this disclosure.

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d) Measurement Uncertainty and the Use of Estimates

Canadian public sector accounting standards require management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the year.

Measurement uncertainty that may be material to these consolidated financial statements exists for:

the liability for employee future benefits of $ _______ (2017 - $ _______ ) because actual experience may differ significantly from actuarial estimations.

property taxation revenue of $ _______ (2017 - $ _______ ) because final tax assessments may differ from initial estimates.

uncollectible taxes of $ _______ (2017 - $ _______ ) because actual collectability may differ from initial estimates.

accrued liabilities for contaminated sites of $ _______ (2017 - $ _______ ) because the actual remediation expense may differ from the valuation estimates.

useful lives of capital assets and related amortization of $ _______ (2017 - $ _______) because the actual useful lives of the capital assets may differ from their estimated economic lives.

These estimates and assumptions are reviewed periodically and, as adjustments become necessary, they are reported in earnings in the periods in which they become known.

While best estimates are used for reporting items subject to measurement uncertainty, it is reasonably possible that changes in future conditions, occurring within one fiscal year, could require material changes in the amounts recognized or disclosed.

e) Financial Instruments

Financial instruments are any contracts that give rise to financial assets of one entity and financial liabilities or equity instruments of another entity. A contract establishing a financial instrument creates, at its inception, rights and obligations to receive or deliver economic benefits. The school division recognizes a financial instrument when it becomes a party to the contractual provisions of a financial instrument. The financial assets and financial liabilities portray these rights and

Include from below the disclosures that are applicable to the school division.

The following disclosure applies only for school divisions that have accrued liability for contaminated sites.

Disclose other items where significant measurement uncertainty exists, including amounts and reason for measurement uncertainty.

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obligations in the consolidated financial statements. Financial instruments of the school division include……

Based on the school division’s circumstances, use one of the following two options.

OPTION 1: If your school division has financial instruments valued only at cost or amortized cost, use the disclosure below.

All financial instruments are measured at cost or amortized cost. Transaction costs are a component of the cost of financial instruments measured using cost or amortized cost. For financial instruments measured using amortized cost, the effective interest rate method is used to determine interest revenues or expenses. Impairment losses such as write-downs or write-offs are reported in the consolidated statement of operations and accumulated surplus from operations.

Gains and losses on financial instruments, measured at cost or amortized cost, are recognized in the consolidated statement of operations and accumulated surplus from operations in the period the gain or loss occurs.

Foreign currency transactions are translated at the exchange rate prevailing at the date of the transactions. Financial assets and liabilities denominated in foreign currencies are translated into Canadian dollars at the exchange rate prevailing at the consolidated financial statement date. The school division believes that it is not subject to significant unrealized foreign exchange translation gains and losses arising from its financial instruments.

If the school division has investments in bonds add the following sentence:

Bond premiums and discounts are amortized to income over the period remaining from the acquisition date to the date of bond maturity.

If the school division has foreign currency transactions, add the following paragraph:

List items applicable to the division, for example:

cash and cash equivalents, accounts receivable, portfolio investments, bank indebtedness, accounts payable and accrued liabilities, short-term loans and long-term debt.

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Financial instruments are assigned to one of the two measurement categories: fair value, or cost or amortized cost.

i) Fair Value

Fair value measurement applies to portfolio investments in equity instruments that are quoted in an active market.…….

Any associated transaction costs are expensed upon initial recognition. Unrealized changes in fair value are recognized in the consolidated statement of remeasurement gains and losses until they are realized, at which time they are transferred to the consolidated statement of operations and accumulated surplus from operations.

Fair value is determined by:

Level 1 quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 inputs other than quoted prices that are observable for the asset or liability either directly, (i.e. as prices) or indirectly (i.e. derived from prices); and

Level 3 inputs for the asset or liability that are not based on observable market data (unobservable inputs).

OPTION 2: If your school division has financial instruments valued at fair value and at cost or amortized cost, use the disclosure below.

If applicable, include any other fair value instruments of the school division, such as:

Derivatives, foreign currency contracts or financial instruments the school division has elected to measure at fair value.

Identify the fair value hierarchy level and basis of measurement for each financial instrument that is applicable to your school division. Only include information for multiple “levels” in situations where multiple levels are used by the division to determine fair value. For example, if all the school division’s fair value items are determined by quoted prices (unadjusted) in active markets for identical assets or liabilities, there is no need to provide information on multiple levels.

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When a decline in fair value is determined to be other than temporary, the amount of the loss is removed from any accumulated remeasurement gains and reported in the consolidated statement of operations and accumulated surplus from operations.

Foreign currency transactions are translated at the exchange rate prevailing at the date of the transactions. Financial assets and liabilities, and non-monetary items included in the fair value measurement category denominated in foreign currencies, are translated into Canadian dollars at the exchange rate prevailing at the consolidated financial statement date. The school division believes that it is not subject to significant unrealized foreign exchange translation gains and losses arising from its financial instruments.

ii) Cost or Amortized Cost

All other financial instruments are measured at cost or amortized cost. Transaction costs are a component of the cost of financial instruments measured using cost or amortized cost. For financial instruments measured using amortized cost, the effective interest rate method is used to determine interest revenues or expenses. Impairment losses such as write-downs or write-offs are reported in the consolidated statement of operations and accumulated surplus from operations.

Gains and losses on financial instruments, measured at cost or amortized cost, are recognized in the consolidated statement of operations and accumulated surplus from operations in the period the gain or loss occurs.

f) Financial Assets

Financial assets are assets that could be used to discharge existing liabilities or finance future operations and are not for consumption in the normal course of operations. Valuation allowances are used where considered necessary to reduce the amounts reported for financial assets to their net realizable value.

Cash and Cash Equivalents consist of cash, bank deposits and highly liquid investments with initial maturity terms of three months or less and held for the purpose of meeting short-term operating cash commitments rather than for investing purposes.

If the school division has foreign currency transactions, add the following paragraph:

If the school division has investments in bonds, add the following sentence:

Bond premiums and discounts are amortized to income over the period remaining from the acquisition date to the date of bond maturity.

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Accounts Receivable includes taxes receivable, provincial grants receivable and other receivables. Taxes receivable represent education property taxes assessed or estimated owing to the end of the fiscal period but not yet received. The allowance for uncollected taxes is a valuation allowance used to reduce the amount reported for taxes receivable to the estimated net recoverable amount. The allowance represents management’s estimate of the amount of taxes that will not be collected taking into consideration prior years’ tax collections and information provided by municipalities regarding collectability of outstanding balances. Provincial grants receivable represent operating, capital, and other grants earned but not received at the end of the fiscal year, provided reasonable estimates of the amounts can be made. Grants are earned when the events giving rise to the grant have occurred, the grant is authorized and any eligibility criteria have been met.

Other receivables are recorded at cost less valuation allowances. These allowances are recorded where collectability is considered doubtful.

Inventories for Sale consist of (describe) which are held for sale in the ordinary course of operations and are valued at the lower of cost and net realizable value. Cost is determined by (describe the applicable method used - e.g. the average cost method). Net realizable value is the estimated selling price in the ordinary course of business.

Portfolio Investments consist of (describe). The school division values its portfolio investments in accordance with its policy for financial instruments, as described in Note 2 (e).

g) Non-Financial Assets

Non-financial assets are assets held for consumption in the provision of services. These assets do not normally provide resources to discharge the liabilities of the school division unless they are sold.

Tangible Capital Assets have useful lives extending beyond the accounting period, are used by the school division to provide services to the public and are not intended for sale in the ordinary course of operations. Tangible capital assets of the school division include ……

Select items that are applicable to your school division:

land, land improvements, buildings, buildings – short-term, school buses, other vehicles, furniture and equipment, computer hardware and software, audio visual equipment, capital lease assets, and assets under construction.

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Tangible capital assets are recorded at cost (or estimated cost when the actual cost is unknown) and include all costs directly attributable to the acquisition, design, construction, development, installation and betterment of the tangible capital asset. The school division does not capitalize interest incurred while a tangible capital asset is under construction.

The cost of depreciable tangible capital assets, net of any residual value, is amortized on a straight line basis over their estimated useful lives as follows:

Land improvements (pavement, fencing, lighting, etc.) 20 yearsBuildings 50 yearsBuildings – short-term (portables, storage sheds, outbuildings, garages)

20 years

School buses 12 yearsOther vehicles – passenger 5 yearsOther vehicles – heavy (graders, 1 ton truck, etc.) 10 yearsFurniture and equipment 10 yearsComputer hardware and audio visual equipment 5 yearsComputer software 5 yearsLeased capital assets Lease term

Assets under construction are not amortized until completed and placed into service for use.

Inventory of Supplies for Consumption consists of supplies held for consumption by the school division in the course of normal operations and are recorded at the lower of cost and replacement cost.

Prepaid Expenses are prepaid amounts for goods or services which will provide economic benefits in one or more future periods. Prepaid expenses include…..

h) Liabilities

Liabilities are present obligations arising from transactions and events occurring prior to year-end, which will be satisfied in the future through the use of assets or another form of economic settlement.

Remove the tangible capital asset classes that are not applicable to your school division from the table below.

Describe, for example,

insurance premiums, Saskatchewan School Boards Association membership fees, Workers’ Compensation premiums, software licenses, League of Educational Administrators, Directors and Superintendents membership dues, etc.

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Short-Term Borrowings are comprised of bank indebtedness and short-term loans with initial maturities of one year or less and are incurred for the purpose of financing current expenses in accordance with the provisions of The Education Act, 1995.

Provincial Grant Overpayment represents government transfers (grants) advanced to the school division in excess of the determined entitlement and which are repayable to the provincial government.

Accounts Payable and Accrued Liabilities include accounts payable and accrued liabilities owing to third parties and employees for work performed, goods supplied and services rendered, but not yet paid, at the end of the fiscal period.

Liability for Contaminated Sites arises when contamination is being introduced into air, soil, water or sediment of a chemical, organic or radioactive material or live organism that exceeds the maximum acceptable concentrations under an environmental standard. A liability for remediation of contaminated sites is recognized when all of the following criteria are met:

an environmental standard exists; contamination exceeds the environmental standard; the school division:

o is directly responsible; or o accepts responsibility

the school division expects that future economic benefits will be given up; and

a reasonable estimate of the amount can be made.

Liabilities are accrued to record the estimated costs related to the management and remediation of contaminated sites where the school division is obligated or likely to be obligated to incur such costs. The liability estimate includes costs that are directly attributable to the remediation activities and reflects the costs required to bring the site up to the current environmental standard for its use prior to contamination. The liability is recorded net of any expected recoveries.

A detail of the accrued Liability for Contaminated Sites is included in Note 9 – Accounts Payable and Accrued Liabilities of the consolidated financial statements.

If the school division has accrued Liability for Contaminated Sites included in the consolidated financial statements add the following note:

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Long-Term Debt is comprised of ……

…… with initial maturities of more than one year and are incurred for the purpose of financing capital expenses in accordance with the provisions of The Education Act, 1995.

Liability for Employee Future Benefits represents post-employment and compensated absence benefits that accrue to the school division’s employees. The cost of these benefits is recorded as the benefits are earned by employees. The liability relating to these benefits is actuarially determined using the projected benefit method pro-rated on service. Actuarial valuations are performed periodically using assumptions including discount rate, inflation, salary escalation, termination and retirement rates and mortality. An actuary extrapolates these valuations when a valuation is not done in the current fiscal year. Actuarial gains and losses are amortized on a straight line basis over the expected average remaining service life of the related employee groups.

Deferred Revenue from Government Transfers represents restricted grants with stipulations that give rise to a liability for which the stipulations have not yet been fulfilled. The revenue is recognized as the stipulations giving rise to the liabilities are settled.

Include items that are applicable to your school division from the list below:

debentures, capital loans, other long-term debt

If your school division has capital leases, include the following paragraph:

Long-term debt also includes capital lease obligations where substantially all of the benefits and risks incident to ownership are transferred to the school division without necessarily transferring legal ownership. The amount of the lease liability recorded at the beginning of the lease term is the present value of the minimum lease payments, excluding the portion thereof relating to executory costs.

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Deferred Revenue from Non-government Sources represents fees or payments for services received in advance of the fee being earned or the services being performed, and other contributions for which the contributor has placed restrictions on the use of the resources. Revenue from tuition and related fees is recognized as the course is delivered; revenue from contractual services is recognized as the services are delivered; and revenue from other contributions is recognized in the fiscal year in which the resources are used for the purpose specified by the contributor.

i) Employee Pension Plans

Employees of the school division participate in the following pension plans:

Multi-Employer Defined Benefit Plans

The school division’s employees participate in one of the following multi-employer defined benefit plans:

i) Teachers participate in the Saskatchewan Teachers’ Retirement Plan (STRP) or the Saskatchewan Teachers’ Superannuation Plan (STSP). The school division’s obligation for these plans is limited to collecting and remitting contributions of the employees at rates determined by the plans.

ii) Other employees participate in the Municipal Employees’ Pension Plan (MEPP). The plan is accounted for as a defined contribution plan whereby the school division’s contributions are expensed when due.

Use the above paragraph only if your school division has deferred revenue from government transfers.

The ministry has not placed any stipulations on operating or capital transfers (grants) that it believes are strong enough to give rise to an obligation that meets the definition of a liability for school divisions/Conseil scolaire. Therefore, would not expect school divisions/Conseil scolaire to report any deferred revenue amounts related to operating or capital grant funding in their consolidated financial statements. If a school division or the conseil scolaire believe there are stipulations attached to grant funding from any ministries, and those are strong enough to give rise to an obligation that meets the definition of a liability at their year-end, they should prepare a position paper to document their reasoning for such determination. This position paper should be discussed with their external auditors and provided to the Ministry of Education and the Ministry of Finance to obtain feedback.

Disclosure will depend on the specific pension plans utilized by the school division. The following are examples that should only be disclosed if applicable to your school division.

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Defined Contribution Plans

The school division’s (specify applicable employee groups) participate in a defined contribution pension plan. The school division’s contributions to the plan are expensed when due.

Defined Benefit Plan Administered by the School Division

The school division administers a defined benefit plan to (specify applicable employee groups). The net pension liability (asset) is the difference between the value of the accrued benefit obligation and the market value of related pension plan assets, net of unamortized actuarial gains and losses, and is reflected in these consolidated financial statements in Note 9 - Accounts Payable and Accrued Liabilities (Note 8 – Accounts Receivable).

The cost of pension benefits earned by employees is actuarially determined using the projected benefit method pro-rated on service and using assumptions including the pension plan's expected investment yields, discount rates, inflation, salary escalations, mortality of members, terminations and the ages at which members will retire. Actuarial gains and losses are changes in the value of the accrued benefit obligation and the pension fund assets resulting from the difference between the actual and expected results or resulting from changes in actuarial assumptions. Actuarial gains and losses are deferred and amortized over the average remaining service life of the related employee groups.

j) Revenue Recognition

Revenues are recorded on the accrual basis. Revenues are recognized in the period in which the transactions or events occurred that gave rise to the revenues, provided the amount to be received can be reasonably estimated and collection is reasonably assured.

The school division’s sources of revenues include the following:

i) Government Transfers (Grants)

Grants from governments are considered to be government transfers. Government transfers are recognized as revenues when the transfer is authorized, all eligibility criteria have been met, the amount can be estimated and collection is reasonably assured except when, and to the extent, stipulations by the transferor give rise to an obligation that meets the definition of a liability. For transfers with stipulations, revenue is recognized in the consolidated statement of operations and accumulated surplus from operations as the stipulation liabilities are settled.

Include only sources of revenues applicable to your school division from the list below:

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ii) Property Taxation

Property tax is levied and collected on a calendar year basis. Uniform education property tax mill rates are set by the Government of Saskatchewan. Tax revenues are recognized on the basis of time with 1/12th of estimated total tax revenue recorded in each month of the school division’s fiscal year. The tax revenue for the September to December portion of the fiscal year is based on the actual amounts reported by the municipalities for the calendar taxation year. For the January to August portion of its fiscal year, the school division estimates tax revenue based on estimate information provided by municipalities who levy and collect the property tax on behalf of the school division. The final annual taxation amounts are reported to the division by each municipality following the conclusion of each calendar taxation year, and any difference between final amounts and the school division’s estimates is recorded as an adjustment to revenue in the next fiscal year.

On January 1, 2018, pursuant to The Education Property Tax Act, the Government of Saskatchewan became the taxing authority for education property tax. As of that date, the school division no longer earns taxation revenue.

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iii) Fees and Services

Revenues from tuition fees and other fees and services are recognized in the year they are earned. Amounts that are restricted pursuant to legislation, regulation or agreements with external parties that may only be used in the conduct of certain programs or in the delivery of specific services and transactions are initially recorded as deferred revenue and subsequently recognized as revenue in the fiscal year the related expenses are incurred or services are performed.

Separate School Divisions should use the following:

Property tax is levied and collected on a calendar year basis. Uniform education property tax mill rates are set by the Government of Saskatchewan and agreed to by the board of education, although separate school divisions have a legislative right to set their own mill rates. Tax revenues are recognized on the basis of time with 1/12th of estimated total tax revenue recorded in each month of the school division’s fiscal year. The tax revenue for the September to December portion of the fiscal year is based on the actual amounts reported by the municipalities for the calendar taxation year. For the January to August portion of its fiscal year, the school division estimates tax revenue based on estimate information provided by municipalities who levy and collect the property tax on behalf of the school division. The final annual taxation amounts are reported to the division by each municipality following the conclusion of each calendar taxation year, and any difference between final amounts and the school division’s estimates is recorded as an adjustment to revenue in the next fiscal year.

Option 1: For those school divisions who have not passed a bylaw to set their own mill rates for the 2018 taxation year, use the following:

On January 1, 2018, pursuant to The Education Property Tax Act, the Government of Saskatchewan became the taxing authority for education property tax. The legislation provides authority to separate school divisions to set a bylaw to determine and apply their own mill rates for education property taxes. For the 2018 taxation year, the school division does not have such a bylaw in place.

Option 2: For those school divisions who have passed a bylaw to set their own mill rates for the 2018 taxation year, use the following:

On January 1, 2018, pursuant to The Education Property Tax Act, the Government of Saskatchewan became the taxing authority for education property tax. The legislation provides authority to separate school divisions to set a bylaw to determine and apply their own mill rates for education property taxes. For the 2018 taxation year, the school division has a bylaw in place and continues to earn taxation revenue.

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iv) Interest Income

Interest is recognized as revenue when it is earned.

v) Other (Non-Government Transfer) Contributions

Unrestricted contributions are recognized as revenue in the year received or in the year the funds are committed to the school division if the amount can be reasonably estimated and collection is reasonably assured. Externally restricted contributions are contributions for which the contributor has placed restrictions on the use of the resources. Externally restricted contributions that are to be held in perpetuity are recognized as revenue in the year in which they are received or committed if the amount can be reasonably estimated and collection is reasonably assured. Externally restricted contributions that are not held in perpetuity are deferred until the resources are used for the purpose specified, at which time the contributions are recognized as revenue. In-kind contributions are recorded at their fair value when they are received.

k) Consolidated Statement of Remeasurement Gains and Losses

The school division has not presented a consolidated statement of remeasurement gains and losses because it does not have financial instruments that give rise to material remeasurement gains or losses.

3. SHORT-TERM BORROWINGS

Bank indebtedness consists of a demand operating line of credit with a maximum borrowing limit of $___ that bears interest at a rate of (describe – e.g. prime plus 0.5% per annum, prime minus 0.25% per annum) with (describe name of bank – e.g. RBC). This line of credit is authorized by a borrowing resolution by the board of education and is secured by (describe). This line of credit was approved by the Minister of Education on (date). The balance drawn on the line of credit at August 31, 2018 was $ _______ at an interest rate of ___ % (August 31, 2017 - $ _______ at an interest rate of ___ %).

Use the disclosure below if your school division does not have material remeasurement gains and losses, ensure that the consolidated statement of remeasurement gains and losses is not presented and any reference to this statement is removed throughout the consolidated financial statements, including note disclosures.

This disclosure should be presented if the school division has an operating line of credit, even if there is currently no outstanding balance. If the school division has no operating line of credit, the disclosure can be removed.

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Short-Term Loans consist of a (describe). The loan is authorized by a borrowing resolution by the board of education and is secured by (describe). The loan was approved by the Minister of Education on (date).

4. PORTFOLIO INVESTMENTS

Portfolio investments are comprised of the following:

2018 2017

Portfolio investments in the cost and amortized cost category: Cost CostGICs $ - $ - Term deposits - - (other - describe) - - Total portfolio investments reported at cost and amortized cost - -

Portfolio investments in the fair value category: Cost Fair Value Cost Fair Value(equity investments in active market) - - - - (other - describe) - - - - (other - describe) - - - - Total portfolio investments reported at fair value - - - -

5. EXPENSES BY FUNCTION AND ECONOMIC CLASSIFICATION

Function Debt Service

Governance $ - $ - $ - $ - $ - $ -

Administration - - - - - -

Instruction - - - - - -

Plant - - - - - -

Transportation - - - - - -

Tuition and Related Fees - - - - - -

School Generated Funds - - - - - -

Complementary Services - - - - - -

External Services - - - - - -

Restructuring - - - - - -

Other - - - - - -

TOTAL $ - $ - $ - $ - $ - $ -

Salaries & Benefits

Goods & Services

Amortization of TCA

2018 Actual

2017 Actual

Use the disclosure below only if it is applicable to your school division.

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6. EMPLOYEE FUTURE BENEFITS

The school division provides certain post-employment, compensated absence and termination benefits to its employees. These benefits include (select as applicable: accumulating non-vested sick leave, severance benefits, vested sick leave, and retirement gratuity). The liability associated with these benefits is calculated as the present value of expected future payments pro-rated for service and is recorded as Liability for Employee Future Benefits in the consolidated statement of financial position. Morneau Shepell Ltd, a firm of consulting actuaries, performed an actuarial valuation as at (date of valuation) and extrapolated the results to estimate the Liability for Employee Future Benefits as at August 31, 2018.

Details of the employee future benefits are as follows:

2018 2017 Long-term assumptions used:

Discount rate at end of period -% -%

-% -%

-% -% Expected average remaining service life (years) # #

Inflation and productivity rate (excluding merit and promotion) - TeachersInflation and productivity rate (excluding merit and promotion) - Non-Teachers

Liability for Employee Future Benefits 2018 2017 Accrued Benefit Obligation - beginning of year $ - $ - Current period service cost - - Interest cost - - Benefit payments - - Actuarial (gains) losses - - Plan amendments - - Accrued Benefit Obligation - end of year - - Unamortized Net Actuarial Gains (Losses) - - Liability for Employee Future Benefits $ - $ -

Ensure that the benefits, highlighted below, match your school division’s actuarial report from Morneau Shepell Ltd.

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Employee Future Benefits Expense 2018 2017 Current period service cost $ - $ - Amortization of net actuarial (gain) loss - - Plan amendments - - Benefit cost - - Interest cost - - Total Employee Future Benefits Expense $ - $ -

7. PENSION PLANS

Multi-Employer Defined Benefit Plans

Information on the multi-employer pension plans to which the school division contributes is as follows:


i) Saskatchewan Teachers’ Retirement Plan (STRP) and Saskatchewan Teachers’ Superannuation Plan (STSP)

The STRP and STSP provide retirement benefits based on length of service and pensionable earnings.

The STRP and STSP are funded by contributions by the participating employee members and the Government of Saskatchewan. The school division’s obligation to the STRP and STSP is limited to collecting and remitting contributions of the employees at rates determined by the plans. Accordingly, these consolidated financial statements do not include any expense for employer contributions to these plans. Net pension assets or liabilities for these plans are not reflected in these consolidated financial statements as ultimate responsibility for retirement benefits rests with the Saskatchewan Teachers’ Federation for the STRP and with the Government of Saskatchewan for the STSP.

OPTION 1: If the school division has employees in both the STRP and STSP, use the disclosure below:

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Details of the contributions to these plans for the school division’s employees are as follows:

2018 2017STRP STSP TOTAL TOTAL

Number of active School Division members # # - # Member contribution rate (percentage of salary) % / % % / % % / % % / % Member contributions for the year $ - $ - $ - $ -

i) Saskatchewan Teachers’ Retirement Plan (STRP)

The STRP provides retirement benefits based on length of service and pensionable earnings.

The STRP is funded by contributions by the participating employee members and the Government of Saskatchewan. The school division’s obligation to the STRP is limited to collecting and remitting contributions of the employees at rates determined by the plan. Accordingly, these consolidated financial statements do not include any expense for employer contributions to the plan. Net pension assets or liabilities for this plan are not reflected in these consolidated financial statements as ultimate responsibility for retirement benefits rests with the Saskatchewan Teachers’ Federation.

Details of the contributions to this plan for the school division’s employees are as follows:

PENSION PLANSMulti-Employer Defined Benefit Plans

OPTION 1i) Saskatchewan Teachers’ Retirement Plan (STRP) and Saskatchewan Teachers’ Superannuation Plan (STSP):

ii) Municipal Employees’ Pension Plan (MEPP)

The MEPP provides retirement benefits based on length of service and pensionable earnings.

The MEPP is funded by employer and employee contributions at rates set by the Municipal Employees’ Pension Commission.

OPTION 2: If the school division has employees in only the STRP, use the disclosure below:

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Every three years, an actuarial valuation is performed to assess the financial position of the plan and the adequacy of plan funding. Any actuarially determined deficiency is the responsibility of the participating employers and employees which could affect future contribution rates and/or benefits.

The contributions to the MEPP by the participating employers are not segregated in separate accounts or restricted to provide benefits to the employees of a particular employer. As a result, individual employers are not able to identify their share of the underlying assets and liabilities, and the net pension assets or liabilities for this plan are not recognized in these consolidated financial statements. The plan is accounted for as a defined contribution plan whereby the school division’s contributions are expensed when due.

Details of the MEPP are as follows:

The Ministry will provide school divisions the plan information required to complete the table below from the audited financial statements of MEPP.

2018 2017

Number of active School Division members # #

Member contribution rate (percentage of salary) -% -% School Division contribution rate (percentage of salary) -% -% Member contributions for the year $ - $ -

School Division contributions for the year $ - $ -

Actuarial extrapolation date mmm/dd/yyyy mmm/dd/yyyy

Plan Assets (in thousands) $ - $ -

Plan Liabilities (in thousands) $ - $ -

Plan Surplus (Deficit) (in thousands) $ - $ -

Use the disclosures below only if it is applicable to your school division.

Defined Contribution Plans

The (identify the plan) is funded by (describe contribution formula and how it is determined). Pension benefits are based on accumulated contributions and investment earnings. Under the defined contribution plan, the school division’s obligations are limited to its contributions.

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Details of the (plan) are as follows:

2018 2017 Number of active School Division members # #

Member contribution rate (percentage of salary) -% -% School Division contribution rate (percentage of salary) -% -% Member contributions for the year $ - $ -

School Division contributions for the year $ - $ -

Defined Benefit Plan Administered by the School Division

The school division administers a defined benefit plan to (specify applicable employee groups) which provides benefits based on length of service and pensionable earnings. The net pension liability (asset) represents accrued pension benefits less the fair value of related pension assets and the balance of unamortized experience gains and losses and is reflected in these consolidated financial statements as accounts payable (accounts receivable) as the school division is ultimately responsible for the funding of these pension obligations.

Details of the (plan) are as follows (disclose other details, as appropriate):

2018 2017 Number of active School Division members # #

Number of former members, superannuates and surviving spouses # #

Member contribution rate (percentage of salary) -% -% School Division contribution rate (percentage of salary) -% -% Member contributions $ - $ -

School Division contributions $ - $ -

Benefits paid $ - $ -

Actuarial valuation date mmm/dd/yyyy mmm/dd/yyyy

Long-term assumptions used: Salary escalation rate -% -% Expected rate of return on plan assets -% -% Discount rate -% -% Inflation rate -% -% Expected average remaining service life (years) # #

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Net Pension Liability / Asset 2018 2017 Accrued Benefit Obligation - beginning of year $ - $ - Current period benefit cost - - Interest cost - - Benefit payments - - Actuarial gains / losses - - Plan amendments - - Accrued Benefit Obligation - end of year - - Pension Plan Assets at market value - beginning of year - - Employer contributions - - Employee contributions - - Return on plan assets - - Actuarial gains / losses - - Benefit payments - - Pension Plan Assets at market value - end of year (1) - - Funded Status - Pension Plan Surplus / Deficit - - Unamortized Net Actuarial Gains / Losses - - Net Pension Liability / Asset $ - $ -

(1) Pension plan assets consist of: 2018 2017 Fixed income securities -% -% Equity investments -% -% Other (describe) -% -%

-% -%

Pension Expense 2018 2017 Current period benefit cost $ - $ - Amortization of net actuarial gain / loss - - Plan amendments - - Employee contributions - - Pension Cost - - Interest cost on the average accrued benefit obligation - - Expected return on average pension plan assets - - Net Interest Cost / Income - - Total Pension Expense $ - $ -

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8. ACCOUNTS RECEIVABLE

All accounts receivable presented on the consolidated statement of financial position are net of any valuation allowances for doubtful accounts. Details of accounts receivable balances and allowances are as follows:

2018 2017Total Valuation Net of Total Valuation Net of

Receivable Allowance Allowance Receivable Allowance Allowance

Taxes Receivable $ - $ - $ - $ - $ - $ - Provincial Grants Receivable - - - - - - Other Receivables - - - - - - Total Accounts Receivable $ - $ - $ - $ - $ - $ -

During the year, $_______ of taxes receivable were transferred from the school division to the Government of Saskatchewan.

9. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Details of accounts payable and accrued liabilities are as follows:

2018 2017 Accrued Salaries and Benefits $ - $ - Supplier Payments - - Liability for Contaminated Sites - -

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

The school division recognized an estimated liability for contaminated sites of $ _______ (2017 - $ _______) for the remediation of (name of the contaminated site(s)) using (name of the valuation technique). The nature of the liability is (description of the nature of the liability including the event or transaction creating the liability). The assumptions used in estimating the liability include (descriptions of assumptions and measurement basis used). The amount of estimated recoveries is $ _______ (2017 - $ _______).

If the school division has accrued Liability for Contaminated Sites included in the above table, provide details using the sample note below:

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10. LONG-TERM DEBT

Details of long-term debt are as follows:

LONG-TERM DEBT

2018 2017

Debentures: $ - $ -

- -

- -

Capital Loans: - -

- -

- - Other Long-Term Debt:

Capital Leases - -

Other Long-Term Debt - -

(provide details of, financial institution, purpose, interest rate, maturity date, periodic loan payments (principal and interest), frequency of payments (monthly, quarterly, annual), security, if applicable)



Future principal repayments over the next 5 years are estimated as follows:

Debentures Capital Loans Capital Leases Total2019 $ - $ - $ - $ - $ - 2020 - - - - - 2021 - - - - - 2022 - - - - - 2023 - - - - - Thereafter - - - - - Total $ - $ - $ - $ - $ -

Other LT Debt

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Principal and interest payments on the long-term debt are as follows:

Debentures 2018 2017Principal $ - $ - $ - $ - $ - $ - Interest - - - - - - Total $ - $ - $ - $ - $ - $ -

Capital Loans

Capital Leases

Other LT Debt

11. DEFERRED REVENUE

Details of deferred revenues are as follows:

Balance Additions Revenue Balanceas at during the recognized as at

Aug. 31, 2017 Year in the Year Aug. 31, 2018 Capital projects: Federal capital tuition $ - $ - $ - $ - Proceeds from sale of school buildings - - - - Other Non-Government deferred capital transfers - - - - Total capital projects deferred revenue - - - - Other deferred revenue: (list and provide details) - - - - Total other deferred revenue - - - - Total Deferred Revenue $ - $ - $ - $ -

12. COMPLEMENTARY SERVICES

Complementary services represent those services and programs where the primary purpose is other than K-12 learning/learning support, but which have the specific objective of enhancing the school division’s ability to successfully deliver its K-12 curriculum/learning programs.

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Following is a summary of the revenues and expenses of the Complementary Services programs operated by the school division:

2018 2017Revenues:

Operating Grants $ - $ - $ - $ - $ - $ - Capital Grants - - - - - - Fees and Other Revenues - - - - - - Total Revenues - - - - - - Expenses:Tuition Fees - - - - - - Salaries & Benefits - - - - - - Instructional Aids - - - - - - Supplies and Services - - - - - - Non-Capital Equipment - - - - - - Building Operating Expenses - - - - - - Communications - - - - - - Travel - - - - - - Professional Development (Non-Salary Costs) - - - - - - Student Related Expenses - - - - - - Contracted Transportation & Allowances - - - - - - Amortization of Tangible Capital Assets - - - - - - Loss on Disposal of Tangible Capital Assets - - - - - - Write-Down of Tangible Capital Assets - - - - - - Total Expenses - - - - - -

Summary of Complementary Services Revenues and Expenses, by Program Pre-K

ProgramsYouth in Custody

Youth in Hospitals

Other Programs

The purpose and nature of each Complementary Services program is as follows:

Please provide a brief description for each complementary services program below.

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13. EXTERNAL SERVICES

External services represent those services and programs that are outside of the school division’s learning/learning support and complementary programs. These services have no direct link to the delivery of the school division’s K-12 programs nor do they directly enhance the school division’s ability to deliver its K-12 programs.

Following is a summary of the revenues and expenses of the External Services programs operated by the school division:

KidsFirst 2018 2017Revenues:Operating Grants $ - $ - $ - $ - $ - $ - $ - $ - Capital Grants - - - - - - - - Fees and Other Revenues - - - - - - - - Total Revenues - - - - - - - - Expenses:Grant Transfers - - - - - - - - Tuition Fees - - - - - - - - Salaries & Benefits - - - - - - - - Instructional Aids - - - - - - - - Supplies and Services - - - - - - - - Non-Capital Equipment - - - - - - - - Building Operating Expenses - - - - - - - - Communications - - - - - - - - Travel - - - - - - - - Professional Development - - - - - - - - Student Related Expenses - - - - - - - - Contracted Transportation & Allowances - - - - - - - - Amortization of Tangible Capital Assets - - - - - - - - Loss on Disposal of Tangible Capital Assets - - - - - - - - Write-Down of Tangible Capital Assets - - - - - - - - Total Expenses - - - - - - - -

Summary of External Services Revenues and Expenses, by Program

Invitational Shared Services Initiative

Following Their Voices

Early Childhood

Intervention Programs

Associate Schools*

Other Programs

*Associate Schools - see table below for details of revenues and expenses by school

The purpose and nature of each External Services program is as follows:

Please provide a brief description for each external services program below.

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2018 2017Revenues:

Operating Grants $ - $ - $ - $ - $ -

Capital Grants - - - - -

Fees and Other Revenues - - - - -

Total Revenues - - - - - Expenses:

Grant Transfers - - - - -

Tuition Fees - - - - -

Salaries & Benefits - - - - -

Instructional Aids - - - - -

Supplies and Services - - - - -

Non-Capital Equipment - - - - -

Building Operating Expenses - - - - -

Communications - - - - -

Travel - - - - -

Professional Development - - - - -

Student Related Expenses - - - - -

Contracted Transportation & Allowances - - - - -

Amortization of Tangible Capital Assets - - - - -

Loss on Disposal of Tangible Capital Assets - - - - -

Write-Down of Tangible Capital Assets - - - - -

Total Expenses - - - - -

Excess (Deficiency) of Revenues over Expenses $ - $ - $ - $ - $ -

Summary of Associate School Revenues and Expenses, Details by School (Name of

School)(Name of School)

(Name of School)

14. ACCUMULATED SURPLUS


Accumulated surplus represents the financial assets and non-financial assets of the school division less liabilities. This represents the accumulated balance of net surplus arising from the operations of the school division including school generated funds.

Certain amounts of the accumulated surplus, as approved by the board of education, have been designated for specific future purposes (describe, for example, school generated funds, capital reserves, etc.). These internally restricted amounts are included in the accumulated surplus presented in the consolidated statement of financial position. The school division does (not) maintain separate bank accounts for the internally restricted amounts.

OPTION 1: If the school division has not presented a consolidated statement of remeasurement gains and losses, use the following disclosure:

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Details of accumulated surplus are as follows:

ACCUMULATED SURPLUS

OPTION 1 - SCHOOL DIVISION WITH NO REMEASUREMENT GAIN/LOSS

Invested in Tangible Capital Assets: Net Book Value of Tangible Capital Assets $ - $ - $ - $ - Less: Debt owing on Tangible Capital Assets - - - -

- - - -

S.286 pre-April 2009 capital reserves (1) - - - -

PMR maintenance project allocations (2) - - - -

Internally Restricted Surplus: Capital projects: Designated for tangible capital asset expenditures - - - - Other (provide details) - - - -

- - - - Other: School generated funds - - - - Scholarship funds - - - - School budget carryovers - - - - Other (provide details) - - - -

August 31

2017

during the year

Reductions during the

year

August 31

2018

Accumulated surplus represents the financial assets and non-financial assets of the school division less liabilities. Accumulated surplus is comprised of the following two amounts:

i) Accumulated surplus from operations which represents the accumulated balance of net surplus arising from the operations of the school division and school generated funds as detailed in the table below; and

ii) Accumulated remeasurement gains and losses which represent the unrealized gains and losses associated with changes in the value of financial instruments recorded at fair value as detailed in the consolidated statement of remeasurement gains and losses.

Certain amounts of the accumulated surplus from operations, as approved by the board of education, have been designated for specific future purposes (describe, for example, school generated funds, capital reserves, etc.). These internally restricted amounts are included in the accumulated surplus from operations presented in the consolidated statement of financial position. The school division does (not) maintain separate bank accounts for the internally restricted amounts.

OPTION 2: If the school division has presented a consolidated statement of remeasurement gains and losses, use the following disclosure:

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Details of accumulated surplus are as follows:

Internally Restricted Surplus: Capital projects: Designated for tangible capital asset expenditures - - - - Other (provide details) - - - -

- - - - Other: School generated funds - - - - Scholarship funds - - - - School budget carryovers - - - - Other (provide details) - - - -

- - - -

Unrestricted Surplus (Deficit) - - - - Total Accumulated Surplus $ - $ - $ - $ -

OPTION 2 - SCHOOL DIVISION WITH REMEASUREMEMENT GAIN/LOSS

Invested in Tangible Capital Assets: Net Book Value of Tangible Capital Assets $ - $ - $ - $ - Less: Debt owing on Tangible Capital Assets - - - -

- - - -

S.286 pre-April 2009 capital reserves (1) - - - -

August 31

2017

during the year

Reductions during the

year

August 31

2018

(1) S.286 pre-April 2009 Capital Reserves represent capital reserves that were created by pre-April 2009 board of education motions that designated certain prior years' operating surpluses to be set aside for the purpose of future capital expenditures. Pursuant to S.286 of The Education Act, 1995, the school division is required to hold these reserves as a special fund for the purpose of constructing or acquiring any capital works that may be approved by the Minister of Education.

(2) PMR Maintenance Project Allocations represent transfers received from the Ministry of Education as funding support for maintenance projects on the school division’s approved 3 year capital maintenance plans. Unspent funds at the end of a fiscal year are designated for future approved capital plan maintenance project expenditures.

The purpose and nature of each Internally Restricted Surplus amount is as follows:

Please provide a brief description for each internally restricted surplus.

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15. BUDGET FIGURES

Budget figures included in the consolidated financial statements were approved by the board of education on (date) and the Minister of Education on (date).

16. PARTNERSHIP(S)

The school division operates (identify partnership) under a partnership agreement between the school division and (identify other party or parties). The purpose of the partnership is to (describe). Any distribution (recovery) of annual operating surplus (deficit) is shared between the partners according to their respective usage of the services.

The following is a schedule of relevant financial information as stated within the consolidated financial statements for the partnership for the year ended August 31, 2018. These amounts represent 100% of the partnership’s financial position and activities.

PARTNERSHIP(S)

2018 2017Financial Assets $ - $ - Capital Assets - - Total Assets - - Financial Liabilities - - Accumulated Surplus - - Total Liabilities and Accumulated Surplus - - Revenues - -

The above amounts have been proportionately consolidated in the school division’s consolidated financial statements at the school division’s partnership share of ___% (2017 - ___ %). After adjusting the accounting policies to be consistent with those of the school division and eliminating transactions between the partnership and the school division, the following amounts have been included in the school division’s consolidated financial statements:

If the school division’s budget was prepared on the same accounting basis as the consolidated financial statements, the following note would be appropriate:

Use this note disclosure only if the school division has a reportable partnership(s).

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2018 2017Financial Assets $ - $ - Capital Assets $ - $ - Financial Liabilities $ - $ - Revenues $ - $ - Expenses $ - $ -

If applicable, the school division should also disclose its share on any contingency and contractual obligation of the partnership.

17. RELATED PARTIES

These consolidated financial statements include transactions with related parties. The school division is related to all Government of Saskatchewan ministries, agencies, boards, school divisions, Saskatchewan Health Authority, colleges, and crown corporations under the common control of the Government of Saskatchewan. Related parties of the school division also include its key management personnel, close family members of its key management personnel, and entities controlled by, or under shared control of any of these individuals.

Related Party Transactions

Based on the school division’s circumstances, choose one of the following options:

Transactions with these related parties have occurred and been settled on normal trade terms.

Transactions with these related parties have occurred and been settled on normal trade terms, with the exception of the items noted below:

Provide a bulleted list of each type of transaction with related parties that have not occurred and been settled on normal trade terms (what type of information needing to be disclosed is in the yellow box below).

An example of this would be, “The school division received X services from related party X at no cost.” For transactions with entities in the government reporting entity, refer to PS 3420 Inter-entity transactions for the types of

OPTION 1: If the school division recognizes, measures and records all transactions with related parties at exchange amounts similar to those adopted if the entities were dealing at arm’s length, use the below sentence.

OPTION 2: If the school division does not recognize, measure and record all transactions with related parties at exchange amounts similar to those adopted if the entities were dealing at arm’s length, use the below disclosure.

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transactions to be assessed for disclosure under PS 2200 Related Party transactions.

Per PS 2200.17 an entity should disclose the following where transaction meets the requirements for disclosure.

a) Adequate information about the nature of the relationship with related parties involved in related party transactions;

b) The types of related party transactions that have been recognized;c) The amounts of the transactions recognized classified by financial

statement category;d) The basis of measurement used;e) The amount of outstanding balances and the terms and conditions attached

to them;f) Contractual obligations with related parties, separate from other

contractual obligations;g) Contingent liabilities involving related parties, separate from other

contingent liabilities; and h) The types of related party transactions that have occurred for which no

amount has been recognized

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RELATED PARTIES

2018 2017Revenues:Ministry of Education $ - $ - (Name of related party) - - (Name of related party) - -

$ - $ - Expenses:(Name of related party) $ - $ - (Name of related party) - - (Name of related party) - -

$ - $ - Accounts Receivable:(Name of related party) $ - $ - (Name of related party) - - (Name of related party) - -

$ - $ - Prepaid Expenses:(Name of related party) $ - $ - (Name of related party) - - (Name of related party) - -

$ - $ - Provincial Grant Overpayment:Ministry of Education $ - $ -

$ - $ - Accounts Payable and Accrued Liabilities:(Name of related party) $ - $ - (Name of related party) - - (Name of related party) - -

$ - $ - Deferred Revenue:(Name of related party) $ - $ -

If your school division receives funding from the ministry for the repayment of principal and interest of long-term debts, insert the following paragraph:

A portion of the operating grant revenue from the Ministry of Education includes funding allocated to principal and interest repayments on some school board loans.

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18. TRUSTS

The school division, as the trustee, administers trust funds for (describe – e.g. banked salary for teacher deferred salary leaves, legacy scholarship, etc.). The trust assets and transactions are not included in the consolidated financial statements.

Information about these trusts is as follows:

TRUSTS

Trust Fund A Trust Fund B Total Total2018 2017 2018 2017 2018 2017

Cash and short-term investments $ - $ - $ - $ - $ - $ - Portfolio investments - - - - - - Total Assets - - - - - - Revenues Contributions and donations - - - - - - Interest on investments - - - - - -

- - - - - - Expenses Materials and supplies - - - - - -

- - - - - - Excess (Deficiency) of Revenues over Expenses - - - - - -

19. UNRECOGNIZED ASSETS

The school division has (insert asset category and description here) that are not recognized because (insert reason for not recognizing here).

Use this note disclosure only if the school division has trusts to report.

Use the following disclosure only if the school division has unrecognized assets to disclose. If not, this note can be removed.

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20. CONTINGENT ASSETS

Based on the school division’s circumstances, use one of the following two options. If the school division does not have contingent assets to disclose, this note can be removed.

The school division is a plaintiff in certain legal actions in which a monetary award has been sought. The amount sought has not been disclosed as the contingent asset cannot be reasonably measured. The school division’s share of the settlement will be recognized as revenue in the year in which the amount is determinable.

The school division is a plaintiff in certain legal actions in which a monetary award has been sought. The amount sought has not been disclosed as such disclosure could be expected to have an adverse effect on the outcome. The school division’s share of the settlement will be recognized as revenue in the year in which the amount is determinable.

Repeat the sentence above for each category of unrecognized assets the school division holds.

Examples of asset categories of unrecognized assets are intangible assets, inherited natural resources, inherited crown land, works of art and historical treasures, etc.

In addition the reason for not recognizing an asset will either be:i) A reasonable estimate cannot be made because the costs,

benefits and economic value of such items cannot be reasonably and verifiably quantified using existing methods; or

ii) The assets have not been recognized in accordance with Public Sector Accounting Standards.

OPTION 1: The following sample note would be used where the amount of the contingent asset cannot be reasonably measured:

OPTION 2: The following sample note would be used where such disclosure of the amount of the contingent asset could be expected to have an adverse effect on the outcome:

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The school division is a plaintiff in certain legal actions in which a monetary award has been sought. The estimated amount sought is (total $_______ amount sought) based on (state the basis for the estimate). The school division's share of the settlement will be recognized as revenue in the year in which the amount is determinable.

21. CONTRACTUAL RIGHTS

Significant contractual rights of the school division are as follows (provide details as appropriate):

_______(insert contract type here) contracts of $_______ over ____ years expiring (insert date)

_______(insert agreement type here) agreements of $_______ over ____ years expiring (insert date)

(other contracts and rights as applicable)

OPTION 3: The following sample note would be used where the amount of the contingent asset can be reasonably measured, and such disclosure would not be expected to have an adverse effect on the outcome:

Include the disclosure and table below only if the school division has contractual rights. Only include those contract/agreement amounts that have not yet been included in revenue. Only contracts/agreements that are signed are to be included. Renewal terms should not be included when they have not been signed.

Contractual rights may include, but are not limited to, contractual rights to receive payments under a shared cost agreement or contractual rights to receive lease payments.

Contractual rights are distinct from assets because there has been no past transaction or event giving rise to an asset at the financial statement date. Until a transaction or event occurs under a contract or agreement, an entity only has contractual right to an economic resource. Once the entity has received an asset, it no longer has a contractual right.

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CONTRACTUAL RIGHTS

Name Contractual Right Name Contractual Right Name Contractual Right Name Contractual Right2019 $ - $ - $ - $ - 2020 - - - - 2021 - - - - 2022 - - - -

22. CONTINGENT LIABILITIES

Based on the school division’s circumstances, use one of the following two options. If the school division does not have contingent liabilities, this note can be removed.

The school division has been named as a defendant in certain legal actions in which damages have been sought. The outcome of these actions is not determinable as at the date of reporting and accordingly, no provision has been made in these consolidated financial statements for any liability that may result. The school division's share of settlement, if any, will be charged to expenses in the year in which the amount is determinable.

The school division has been named as a defendant in certain legal actions in which damages have been sought. The estimated amount claimed is (total $_______ amount of claims). The outcome of these actions is not determinable as at the date of reporting, and accordingly no provision has been made in these consolidated financial statements for any liability that may result. The school division's share of settlement, if any, will be charged to expenses in the year in which the amount is determinable.

OPTION 1: The following sample note would be used where the amount of the contingent liability cannot be reasonably measured or such disclosure could be expected to have an adverse effect on the outcome:

OPTION 2: The following sample note would be used where the amount of the contingent liability can be reasonably measured, and such disclosure would not be expected to have an adverse effect on the outcome:

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23. CONTRACTUAL OBLIGATIONS AND COMMITMENTS

Significant contractual obligations and commitments of the school division are as follows (provide details as appropriate):

construction contract for (describe project) in the amount of $_______ over ____ years

computer service agreements of $_______ over ____ years (other contracts and commitments as applicable)

Operating and capital lease obligations of the school division are as follows:

CONTRACTUAL OBLIGATIONS AND COMMITMENTS

Operating Leases Capital Leases

Computers Copiers Buses

Future minimum lease payments:

2019 $ - $ - $ - $ - $ - $ - $ - $ - $ - 2020 - - - - - - - - - 2021 - - - - - - - - - 2022 - - - - - - - - - 2023 - - - - - - - - - Thereafter - - - - - - - - -

Office Rental

Copier Leases

(Other - describe)

Total Operating

(Other - describe)

Total Capital

Include the disclosure and table below only if the school division has contractual obligations and commitments. Only include those contract/agreement amounts that have not yet been included in revenue. Only contracts/agreements that are signed are to be included. Renewal terms should not be included when they have not been signed.

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24. ACCOUNTING CHANGES

Examples of accounting changes notes:

Include as applicable:

1) Change in Accounting Policy: change from one appropriate accounting policy to another

(Retroactive with restatement of prior periods, unless the necessary financial data are not reasonably determinable)

i) Retroactive with restatement of prior period comparatives

During the year, the school division changed its accounting policy with respect to (provide a description and details of the accounting policy). The school division now accounts for such transactions (describe new accounting policy). Prior to this change in policy, the school division accounted for these transactions (describe old accounting policy). The school division believes the new policy is preferable as it provides a fairer presentation of the results and the financial position of the school division. This change has been applied retroactively with restatement of prior period comparative amounts. The change in accounting policy has impacted the school division’s consolidated financial statements as follows: (describe impact on current and prior period amounts)

ii) Retroactive adjustment of opening accumulated surplus without restatement of prior period comparatives

(effect of the new accounting policy is not reasonably determinable for individual prior periods)

During the year, the school division changed its accounting policy with respect to (provide a description and details of the accounting policy). The school division now accounts for such transactions (describe new accounting policy). Prior to this change in policy, the school division accounted for these transactions (describe old accounting policy). The school division believes the new policy is preferable as it provides a fairer presentation of the results and the financial position of the school division. This change has been applied retroactively with an adjustment to opening accumulated surplus; however, prior year comparatives have not been restated to reflect this revised accounting policy as its effect on the previous year’s financial results is not reasonably determinable. Consequently, comparisons between the current and prior fiscal years may not be meaningful. The change in accounting policy has impacted the school division’s consolidated financial statements as follows: (describe impact on current amounts and opening accumulated surplus)

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iii) Prospective

(effect of the new accounting policy is not reasonably determinable for the cumulative effect of the change or for individual prior periods)

During the year, the school division changed its accounting policy with respect to (provide a description and details of the accounting policy). The school division now accounts for such transactions (describe new accounting policy). Prior to this change in policy, the school division accounted for these transactions (describe old accounting policy). The school division believes the new policy is preferable as it provides a fairer presentation of the results and the financial position of the school division. This change has been applied prospectively as the effect of the new accounting policy is not reasonably determinable for the cumulative effect of the change or for individual prior periods. Consequently, prior year comparatives have not been restated to reflect this revised accounting policy and comparisons between the current and prior fiscal years may not be meaningful. The change in accounting policy has impacted the school division’s consolidated financial statements as follows: (describe impact on current amounts)

25. CORRECTION OF PRIOR PERIOD ERROR

(retroactive with restatement, unless it is impracticable to do so)

Subsequent to the year ended August 31, 2017, the school division identified an error in (describe error). Due to this error, the school division's (describe misstatements that resulted from the error). The prior period comparative amounts have been restated from those previously reported to correct for this error. The correction of this error has impacted the school division’s consolidated financial statements as follows: (describe impact on current and prior period amounts)

26. COMPARATIVE INFORMATION

Include only if applicable.

Certain comparative figures have been reclassified to conform to the current year's presentation.

27. SUBSEQUENT EVENTS

Include the example below only if applicable.

Subsequent to the year end the school division entered into an agreement to purchase (e.g. school buses) at a total cost of $___________.

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28. JOINT-USE SCHOOLS PROJECT AGREEMENT

Include only if the school division signed an accountability agreement related to the joint-use schools project with the Government of Saskatchewan.

In August 2015, the Government of Saskatchewan entered into a 32 year public-private partnership with Joint-Use Mutual Partnership to design, finance, build and maintain (name of schools) in (name of town/city) on behalf of the school division. The Government of Saskatchewan will be responsible for all capital, maintenance and operating payments over the term of the public-private partnership agreement with ownership of the schools vesting with the school division. Under the Accountability Agreement between the Government of Saskatchewan and school division, the school division receives the benefit of payments made by the Government of Saskatchewan.

29. RESTRUCTURING TRANSACTIONS

Based on the school division’s circumstances, use one of the following two options. If the school division does not have restructuring transactions, this note can be removed.

OPTION 1: Update the below disclosure with details of the restructuring transaction if the school division receives the transfer

On [insert date], the school division received the transfer of [insert brief description of assets (and liabilities) and the responsibility for the ongoing operation of the asset(s)] from [insert transferring organization’s name]. The transfer was due to [brief description of why the restructuring transaction occurred].

The assets [and liabilities] have been recorded as [e.g., tangible capital assets), at the [insert transferring organization’s name] carrying value at the time of the transfer, totaling $XX. This amount has been recorded as revenue [expense] during the year. Under the transfer, the school division also assumed responsibility for [contingent liabilities (describe) and/or contractual obligations (describe) if applicable].

The school division also received compensation of $XX for [outline the purpose -what it is for – if applicable].

The school division incurred $XX in restructuring costs related to [brief description of the cause of the costs incurred if significant e.g., legal, accounting, professional services – if applicable].

From the date of transfer to August 31, 2018, revenues and expenses related to the operation of the assets were as follows: revenue of $XX; salaries of $XX; goods and services of $XX; amortization of $XX; and debt service $XX.

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OPTION 2: Update the below disclosure with details of the restructuring transaction if the school division is the transferor

On [insert date here], the school division transferred [insert brief description of assets (and liabilities) and the responsibility for the ongoing operation of the asset(s)] to [insert receiving organization’s name]. [Contingent liabilities (describe) and/or contractual obligations (describe) if applicable] are also transferred to [insert receiving organization’s name].

The transfer was due to [brief description of why the restructuring transaction occurred].

The carrying amount of the assets [and liabilities] transferred of $XX is recorded as an expense (revenue) during the year. The school division also provided of compensation of $XX for [outline the purpose -what it is for – if applicable].

The school division incurred $XX in restructuring costs related to [brief description of the cause of the costs incurred if significant e.g., legal, accounting, professional services – if applicable].

30. RISK MANAGEMENT

The school division is exposed to financial risks from its financial assets and liabilities. These risks include credit risk, liquidity risk and market risk (consisting of interest rate risk and foreign exchange risk).

In accordance with PS3450, the school division is required to provide disclosures for the risks arising from the school division’s financial instruments. Sample disclosures are provided below; however, each school division should determine the required disclosures regarding their risks and how they manage those risks based on their own specific circumstances.

Financial Instruments include: cash and cash equivalents, accounts receivable, portfolio investments, bank indebtedness, accounts payable and accrued liabilities, short-term loans and long-term debt.

The following are excluded from financial instruments: tax receivable / payable / GIL, inventories, capital leases except embedded derivatives, liability for contaminated sites and Employee future benefits.

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i) Credit Risk

Credit risk is the risk to the school division from potential non-payment of accounts receivable. The credit risk related to the school division's receivables from the provincial government, federal government and their agencies are considered to be minimal. For other receivables, the school division has adopted credit policies which include…..

The school division does not have a significant exposure to any individual customer (or describe any significant exposures). Management reviews accounts receivable on a case by case basis to determine if a valuation allowance is necessary to reflect impairment in collectability.

The aging of grants and other accounts receivable as at August 31, 2018 was:

August 31, 2018Total Current 0-30 days 30-60 days 60-90 days Over 90 days

Grants Receivable $ - $ - $ - $ - $ - $ - Other Receivables - - - - - - Gross Receivables - - - - - - Allowance for Doubtful Accounts - - - - - - Net Receivables $ - $ - $ - $ - $ - $ -

If the school division has GST receivables, include the following, as these amounts are not to be included within the table above (either separately or within the other receivables row).

Receivable amounts related to GST are not applicable to credit risk, as these do not meet the definition of a financial instrument.

Describe the credit policies adopted by the school division for example:

“The analysis of the financial position of its customers and the regular review of their credit limits in order to reduce its credit risk; close monitoring of overdue accounts, etc.”

Do not include education property taxes receivable and GST rebates in the table below, as these items do not meet the definition of a financial instrument.

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ii) Liquidity Risk

Liquidity risk is the risk that the school division will not be able to meet its financial obligations as they come due. The school division manages liquidity risk by…..

The following table sets out the contractual maturities of the school division’s financial liabilities:

August 31, 2018

Total 1 to 5 years > 5 yearsBank indebtedness $ - $ - $ - $ - $ - Provincial grant overpayment - - - - - Accounts payable and accrued liabilities - - - - -

- - - - - - - - - -

(list other, if applicable) - - - - - Total $ - $ - $ - $ - $ -

Within

6 months

6 months

to 1 year

Short-term loans (includes interest)Long-term debt (includes interest)

iii) Market Risk

The school division is exposed to market risks with respect to interest rates and foreign currency exchange rates, as follows:

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The school division’s interest rate exposure relates to…..

Describe the school division’s practices for managing this risk, for example, maintaining adequate cash balances, budget practices and monitoring, forecasts, etc.

It is optional to include the future interest component of short-term loans and long-term debt in the below table, using the future interest details within related loan amortization schedules. If your school division chooses to include this future interest, ensure that “(includes interest)” is added behind the liability description.

List as applicable: For example cash and cash equivalents, portfolio investments, short-term debt, and long-term debt.

Do not include long-term debt if your school division long-term borrowings are at fixed rates.

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The school division also has an authorized bank line of credit of $_______ with interest payable monthly at a rate of (describe – e.g. prime plus 0.5% per annum, prime minus 0.25% per annum). Changes in the bank's prime rate can cause fluctuation in interest payments and cash flows. The balance outstanding on this credit facility at August 31, 2018 was $_____ (2017 - $_______). (Or: There was no balance outstanding on this credit facility as of August 31, 2018).

The school division minimizes these risks by…..

Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The school division is exposed to currency risk on purchases denominated in U.S. dollars for which the related accounts payable balances are subject to exchange rate fluctuations; however, the school division believes that it is not subject to significant foreign exchange risk from its financial instruments.

Provide details, such as the examples shown below:

holding cash in an account at a Canadian bank, denominated in Canadian currency

investing in GICs and term deposits for short terms at fixed interest rates investing in (describe the investment and how the school division

minimizes its exposure to interest rate risk) managing cash flows to minimize utilization of its bank line of credit managing its interest rate risk on long-term debt through the exclusive use of

fixed rate terms for its long-term debt

If the school division’s consolidated financial statements include a foreign currency disclosure in Note 2, use the paragraph below:

Documents

Microsoft › pubsask-pr… · Web viewThe net pension liability (asset) is the difference between the value of the accrued benefit obligation and the market value of related pension