Transfer Payment and Financial Reporting Branch
Ministry of Education
2006-07 Financial Statement Checking Procedures
TPFR Information Sessions
Fall 2007
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Objective
The purpose of the Checking Procedures is to assess if boards have met the key compliance areas of the funding model and to determine the board's final grant entitlement for year under review.
The review and analysis of the board’s submitted data also ensures consistency and data integrity for future funding models or enhancements.
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Topics of Discussion
Initial Review Published Financial Statements Financial Health Schedules Sections Data Forms Appendices
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Initial Review
Financial Statements Accuracy - Review EFIS submission; compare the EFIS submission to the published audited statements and the hard copies received.
Prior Year Review - Review the previous years checking procedures to identify problematic recurring issues.
Warning Messages - Note for further investigation during review.
Data Analysis and Review - Note questionable variances for further review.
Appendix H - Compare the boards staffing levels to the prior year Financial Statements.
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Published Financial Statements
Ensure auditor's report conforms to one of the recommended formats provided to school boards.
Check that all required Notes to the Financial Statements are disclosed per the PSA Handbook.
Verify if the board included a signed Management Report as part of their published financial statements or that the management statement is included in the notes to the financial statements.
Note the entities the board is consolidating. Check the board's website to verify that they have
published the Director's Annual Report.
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Financial Health
Submission – Determine if board has incurred an operating deficit. (Section 231 of the Education Act)
Financial Position - Note changes in net financial assets. Amount recovered - Note what is reported in Appendix I
and if the board's future cash funding requirements are increasing or decreasing.
Cash Flow – Determine if change in cash and cash equivalents is improving .
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Schedules
Ensure Budget columns are completed on all schedules.
Schedule 2.2 – Capital fund Other Revenues should include proceeds from sales of sites
and buildings recognized in current year. Amount reported should not differ significantly from Schedule 5.1 Lines 1.10, 1.11, 1.12, 1.14, 1.15, 1.16.
Schedule 2.4 – School Activities Fund Review for completeness and reasonability.
Schedule 3 – Capital Fund Establish whether capital dollars are being used for
operating purposes
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Schedules
Schedule 4 – Outlay for Duties of a Municipal Council Compare to previous year and ensure schedule is completed if
applicable.
Schedule 5 – Reserve Funds Opening balances should agree to last year closing
Schedule 6 - Trust Funds Compare to previous year total balances and ensure schedule is
completed if applicable.
Schedules 9 & 10 – Operating Fund Revenues/Expenditures Compare revenues/expenditures reported with prior year for
reasonableness.
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Schedules Schedule 10ADJ – Adjustments for Compliance
This schedule is designed to show the adjustments required to arrive at Adjusted Expenditures for compliance purposes. Compare the column totals to notes to the financials statements, Schedule 10G etc. Verify if amounts reported are accurate.
Schedule 10A & 10B - Special Education Expenditures Ensure expenses are not reported on a PSAB basis. i.e.
interest accrual, vacation accrual, retirement benefits and prepaid expenses to be excluded.
Review the classroom teacher salaries and benefits on Schedule 10 and Schedules 10A/B. Follow up with the board if the ratio of benefits to salary allocated on Schedules 10A/B for Special Education exceeds the ratio of benefits to salary on Schedule 10.
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Schedules
Schedule 11A & 11B – Tax Revenue Ensure that the tax revenues reported are reasonable.
Review supplementary taxes and write-offs.
Schedule 12 – Continuing Ed, Summer school & PLAR Analyze program changes
Schedule 13 – Day School Enrolment Compare enrolment with confirmation letter. Compare
independent study enrolment with prior year. Note if "other pupils" are reported then ensure Appendix B1 is completed and agrees.
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Sections
Section 1 – Summary of allocations Compare allocation with prior year and current year Revised
Estimates.
Section 2 – Special Education Compare SEA claims, SIP, and Section 23 amounts with
approved files.
Section 3 – Language Allocations FRENCH BOARDS ONLY – Verify if amount entered at line
3.10 Start Up.
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Sections
Section 7 & Appendix G - Teacher Qualification and Experience & Salary Grid The placement of teachers in Section 7 when multiplied by
the salaries reported on Appendix G should not be greater than the applicable salaries and wages reported on Schedule 10.
Ensure that Appendix G reflects the most current year grid.
Section 10 – Administration & Governance The number of trustees reported should be similar to last
year. The number of municipalities reported are compared to
Schedule 11A excluding any unorganized or isolate areas.
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Sections
Section 11 – Pupil Accommodation - Section 23 Program – Line 11.12.2 - Compare the FTE reported at line 11.12.2 to
the Field Service Branch approval file. The acquisition cost of portables reported at lines11.31.8
and 11.34.8 are compared to the amounts reported on the 5 and 7 month capital activity reports.
Section 12 – Debt charges Verify the opening balances; retirement of sinking fund
amount, principal payments, interest payments, contribution to sinking fund, eligible NPF debt related to NPP.
Section 14 - Territorial District Adjustments Only applicable to tax collecting boards in unorganized areas
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Data Forms
Data A2 – Enveloping, Special Education Self Contained Classroom Enrolment -Compare the number
reported to the previous year for reasonableness. Verify strike or lock-out, special education expenditure for
High Cost Programs and other revenue sources.
Data A2 - Enveloping, Administration and Governance Other Revenue Sources - Check any amounts identified here
against Schedule 9 for reasonableness.
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Data Forms
Data A3 – Revenue Recognition Verify opening balance, transfer from proceeds of disposition
reserve and transfer from deferred revenues.
Data D – Net Expenditure Verify that 68.49% of tuition fee revenue has been allocated
to the classroom. Values at line 29 col. 8 indicate change in purpose of
reserve which should have supporting ministry approval. Check transfers from pupil accommodation reserve,
transfers from deferred revenue, flexibility amount.
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Appendices
Appendices D1 Education Development Charges & D2 – EDC Eligible Capital & Debt Obligations Ensure that the opening fund balance and amount reported
as outstanding principal are correct.
Appendix F – Transportation to Provincial Schools Review expenditure, number of pupils and average cost
trends.
Appendix I - Amounts to be Recovered: Check figures to information in board's notes to the financial
statements .
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Questions