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PUT TITLE HERETCA Implementation -

Review of Data

OASBO Finance Committee WorkshopTransfer Payments & Financial Reporting BranchMarch 2008

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DataData

What is it? What is it? – March 31, 2005 to March 31, 2007

– Data output from BVC (as of March 31, 2005) + following data collection periods:» April 2005 to August 2005» September 2005 to March 2006» April 2006 to August 2006» September 2006 to March 2007

– Buildings, portables, land and land improvements

– Different tabs for each asset type (does not include CIP, PAC/PCC)

Where is it ?Where is it ?– EFIS– Go to submission….Reports….Static Reports

» March 31, 2005 to March 31, 2007 Capital Asset Data

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Where to start ?Where to start ?

Access file Access file – Manipulate data to suit you

Excel File contains 10 tabsExcel File contains 10 tabs1) Buildings & Land Definitions

2) Portables Definitions

3) Buildings & Land Input File

4) Portables Input File

5) Buildings & Land Output File

6) Portables Output File

7) Buildings Continuity

8) Land Continuity

9) Land Improvement Continuity

10) Portables Continuity

Input into BVC

Output from BVC

Calculations will be provided shortly

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Where to FocusWhere to Focus

BVC Input

BVC Output

Excel Data

Data at March 31,

2007

=

LandBuildingsPortables

LandBuildingsPortablesLand Improvements

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Where to FocusWhere to Focus

BVC Input

- Year of purchase- GFA- Building condition- Cost

Portables:- Year of manufacture- GFA

LandBuildingsPortables

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Where to FocusWhere to Focus

BVC Output

X

Don’t Audit the Black Box

Don’t try to replicate the values

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Where to FocusWhere to Focus

Excel Data

-Additions / disposals by cycle

-Ask auditors what additional work they will require

-Get together back-up

LandBuildingsPortablesLand Improvements

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Where to FocusWhere to Focus

Data at March 31,

2007

- Asset Type - RSL- GBV- AA

FOR REASONABLENESS

MISTAKESMISTAKES

Contact Ministry:

-Look at groups of assets, not one at a time

-Form for missed assets

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Where to FocusWhere to Focus

BVC Input

BVC Output

Excel Data

Data at March 31,

2007

=

- Year of purchase- GFA- Building condition

Portables:- Year of manufacture- GFA

-Additions / disposals by cycle

-Ask auditors what additional work they will require

- Asset Type - RSL- GBV- AA

X

FOR REASONABLENESS

LandBuildingsPortables

LandBuildingsPortablesLand Improvements

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Miscellaneous ItemsMiscellaneous Items Asset Serial Id #Asset Serial Id #

– PLEASE KEEP IT

Changes to RSL for PortablesChanges to RSL for Portables– Additions made to portables with 0 RSL

» Ministry revised it based on $ investment amount» Immaterial for the Province

Portables - to pool or not to poolPortables - to pool or not to pool– Revisions to RSL

Data dump requestsData dump requests– At March– At August

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Changes to TCA Guide & Code of AccountsChanges to TCA Guide & Code of Accounts See HandoutsSee Handouts

– School Board & School Authority TCA Guide Revisions (Release no 1)

– Uniform Code of Accounts Amendments to capture Tangible Capital Asset Expenditures until full Implementation

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Amortization Expense CalculationAmortization Expense Calculation See Excel DocumentSee Excel Document

-1 x (Opening NBV / Opening RSL) + -1 x (Additions / (Opening RSL - .5 ) * 1/2

Assumes Additions to Buildings happen 1/2 way through the year.

NEW BUILDINGOpening/Existing Additions Disposals Closing Support for Calculation:

Year 1 Gross Book Value - 40,000,000 40,000,000 Acc. Amortization - (500,000) (500,000) (40,000,000 / 40 yrs ) x 1/2

Net Book Value - 39,500,000 39,500,000 Remaining Service Life 40.5 39.5

Year 2 Gross Book Value 40,000,000 40,000,000 Acc. Amortization (500,000) (1,000,000) (1,500,000) (39,500,000 / 39.5 yrs)

Net Book Value 39,500,000 (1,000,000) 38,500,000 Remaining Service Life 39.5 38.5

Year 3 Gross Book Value 40,000,000 380,000 40,380,000 (380,000 / 38 yrs) x 1/2

Acc. Amortization (1,500,000) (1,005,000) (2,505,000) (38,500,000 / 38.5 yrs)+(380,000 / 38 yrs x 1/2)

Net Book Value 38,500,000 (625,000) 37,875,000 Remaining Service Life 38.5 37.5

Year 4 Gross Book Value 40,380,000 40,380,000 Acc. Amortization (2,505,000) (1,010,000) (3,515,000) (37,875,000 / 37.5 yrs)

Net Book Value 37,875,000 (1,010,000) 36,865,000 Remaining Service Life 37.5 36.5

Year 40 Gross Book Value 40,380,000 - 40,380,000 Acc. Amortization (38,865,000) (1,010,000) (39,875,000)Net Book Value 1,515,000 (1,010,000) 505,000 Remaining Service Life 1.5 0.5

Year 41 Gross Book Value 40,380,000 - 40,380,000 Acc. Amortization (39,875,000) (505,000) (40,380,000)Net Book Value 505,000 (505,000) - Remaining Service Life 0.5 (0.5)

Example Amortization Calculation for 2006-07

Total Amortization = Amortization on Existing Assets + Amortization on Additions