1 / 13

Specified Audit Procedures for Capital Wrap-Up Template

Specified Audit Procedures for Capital Wrap-Up Template. Financial Analysis & Accountability Branch September 2010. Purpose & Background. Capital Wrap-Up: Province is assuming $8.6B of Boards’ debts as of August 31, 2010

adora
Download Presentation

Specified Audit Procedures for Capital Wrap-Up Template

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Specified Audit ProceduresforCapital Wrap-Up Template Financial Analysis & Accountability Branch September 2010

  2. Purpose & Background • Capital Wrap-Up: Province is assuming $8.6B of Boards’ debts as of August 31, 2010 • Each Board’s supported debt as determined through the Capital Wrap-Up Template (CWT) will represent the Accounts Receivable balance from the Government of Ontario on the 2009-10 F/S • Ministry must meet audit requirements for Public Accounts 2007-08 Grants for Student Needs

  3. Submission Timelines • Ministry to review Boards’ submitted CWT from 2010-11 Estimates(These were submitted July 31, 2010 with estimates to August 31, 2010) • A Ministry reviewed template will be sent to Boards in early October • Boards will update their reviewed CWT based upon actual information as of August 31, 2010 • Boards to submit updated CWT and specified audit procedures report with 2009-10 audited F/S – Deadline November 15, 2010 unless an extension has been granted by the Ministry 2007-08 Grants for Student Needs

  4. Debt Schedule • Agreed total principal outstanding of all debentures as at August 31, 2010 to 2009-10 audited F/S • Agreed each outstanding principal debenture balance as at August 31, 2010 to the notes in the 2009-10 audited F/S • For all new debentures issued in 2009-10, agreed the original amount of the debenture (face value), interest rate and terms to debenture agreements/by-laws • For debentures issued prior to 2009-10, agreed the original amount of the debenture (face value), interest rate and terms to either the debenture by-law, audited notes to the F/S or auditors’ prior year working papers • For each debenture, agreed the future debt payments (principal and interest) to supporting documentation (i.e. the amortization schedule in debenture agreement) 2007-08 Grants for Student Needs

  5. Debt Schedule continued • Agreed sinking fund (SF) contributions (up to August 31, 2010) for each SF debenture to supporting documentation (i.e. SF debenture by-law and/or amortization schedule) • Agreed future SF contributions for each SF debenture to supporting documentation (i.e. SF debenture by-law and/or amortization schedule) • Agreed the amount to be refinanced for each sinking fund debenture to supporting documentation (i.e. SF debenture by-law, Board motion/minutes) • Agreed assumed rate of return for each sinking fund debenture to supporting documentation (i.e. SF debenture by-law, Board motion/minutes) 2007-08 Grants for Student Needs

  6. Project Eligibility Amounts Schedule • Column 14 Represents: • Actual project costs incurred up to August 31, 2010; and • Estimated remaining project costs to be completed based upon approvals at August 31, 2010 • Select 5 most recently completed permanent space projects • For actual project costs incurred up to August 31, 2010, obtain detailed listing from G/L and vouch the 5 largest invoices • Amounts to be Constructed should be nil as the sample is selected from completed projects 2007-08 Grants for Student Needs

  7. Not Permanently Financed (NPF) • Agreed opening NPF balance in 2009-10 FS Section 12 of EFIS to closing Capital Fund balance from audited 2008-09 F/S • Agreed closing NPF balance in 2009-10 FS Section 12 of EFIS to opening NPF balance in Section 12 worksheet of CWT • Select 5 projects based on 5 largest NPF balances from Column 21 of Project Eligibility Amounts Schedule of CWT • NPF = Total Project Costs – Long-Term (LT) Financing – Cash Contributions • For Project Costs in Column 14: For actual project costs incurred up to August 31, 2010, obtain detailed listing from G/L and vouch 5 largest transactions to invoices. • For LT Financing in Columns 19 and 20: Review Board’s allocation of debenture balances to each project and agree to supporting documentation (i.e. Board motion) 2007-08 Grants for Student Needs

  8. Not Permanently Financed (NPF) continued • For Cash contributions in Column 18: • For amounts recorded in Column 18, agree to Board motion/Ministry approval letter. • If no Cash reported in Column 18, enquire of Board if there was a Board motion or Ministry approval for the project and agree amount to Column 18. • For Amounts to be Constructed in Column 17.7 & 22: • Agreed to a summary of estimated project costs. 2007-08 Grants for Student Needs

  9. Project Debenture Matrix • Select 3 largest OFA and 3 largest Non-OFA debentures • Agree Board’s allocation of debt to different projects to supporting documentation. Examples include: • Board minutes/motions • Debenture by-laws • Debenture agreement • If the total allocation of the debt is less than 80% of the value of the debenture based upon supporting documentation, obtain explanation from Board. 2007-08 Grants for Student Needs

  10. Pupil Accommodation Debt Reserve (PADR) Balance • Consists of New Pupil Places (NPP), School Renewal and Other Reserves • The NPP portion of the reserve will reduce the Accounts Receivable balance from the Government of Ontario on the 2009-10 FS • Boards will be able to keep School Renewal and Other reserves • Table in the CWT will be completed by the Board • Balance of School Renewal reserve as of August 31, 2009 will be pre-loaded by the Ministry • Review the 2009-10 transactions and agree to 2009-10 active EFIS FS or supporting documentation • Provide a description and amount of other capital reserves reported in the 2008-09 FS 2007-08 Grants for Student Needs

  11. Leasing Report • Sample size: Select 50% of items reported up to a max of 4 • Review each selected lease and ensure meets PSG 2 of CICA HB • Agree original capitalized value based upon lease agreement • Agree remaining capitalized value based upon lease agreement/amortization schedule • Agree implicit rate to lease agreement • Agree 2009-10 capital lease amount and lease escalator to lease agreement • Agree lease start and end date to lease agreement • Agree future annual lease amounts to lease agreement 2007-08 Grants for Student Needs

  12. Contacts Anthony Yeung Manager Transfer Payment Accountability Unit (416) 314-0790 Anthony.Yeung@ontario.ca Cheryl Dalrymple Finance Officer Transfer Payment Accountability Unit (416) 325-2038 Cheryl.Dalrymple@ontario.ca 2007-08 Grants for Student Needs

  13. QUESTIONS ?? 2007-08 Grants for Student Needs

More Related