DRAFT EXAMPLES OF OTHER NOTES DISCLOSURES



ILLUSTRATIVE NOTES DISCLOSURES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Revised – September 16, 2010)

Table of Contents

| | | |Page No. |

| |MANAGEMENT REPORT |2 |

| | | |

|1. |Significant Accounting Policies | |

| |a) |Reporting Entity |3 |

| |b) |Trust Funds |3 |

| |c) |Basis of Accounting |3 |

| |d) |Cash and Cash Equivalents |4 |

| |e) |Investments |4 |

| |f) |Deferred Revenue |4 |

| |g) |Retirement and Other Employee Future Benefits |4 |

| |h) |Tangible Capital Assets |5 |

| |i) |Government Transfers |6 |

| |j) |Investment Income |6 |

| |k) |Long-term Debt |6 |

| |l) |Budget Figures |7 |

| |m) |Use of Estimates |7 |

|2. |Change in accounting policies |7 |

|3. |Investments |8 |

|4. |Account Receivable – Government of Ontario |8 |

|5. |Deferred Revenue |9 |

|6. |Retirement and Other Employee Future Benefits |9 |

|7. |Net Long-Term Debt |14 |

|8. |Temporary Borrowing |15 |

|9. |Debt Charges and Capital Loans and Leases Interest |16 |

|10. |Expenses by Object |16 |

|11. |Board Performs Duties of a Municipal Council |17 |

|12. |Tangible capital assets |18 |

|13. |Accumulated Surplus |19 |

|14. |Trust funds |19 |

|15. |Ontario School Board Insurance Exchange (OSBIE) |19 |

|16. |Contractual Obligations and Contingent Liabilities |19 |

|17. |Segmented information |20 |

|18. |Budget data |20 |

|19. |Partnership in [name] Transportation Consortium |20 |

|20. |Accounting for Contributions used for Capital |22 |

MANAGEMENT REPORT

Management’s Responsibility for the Consolidated Financial Statements

The accompanying consolidated financial statements of the ………… Board are the responsibility of the Board management and have been prepared in compliance with legislation, and in accordance with generally accepted accounting principles established by the Public Sector Accounting Board of The Canadian Institute of Chartered Accountants. (except for ……..any qualification per auditors’ report……..).

A summary of the significant accounting policies are described in Note 1 to the consolidated financial statements. The preparation of consolidated financial statements necessarily involves the use of estimates based on management’s judgement, particularly when transactions affecting the current accounting period cannot be finalized with certainty until future periods.

Board management maintains a system of internal controls designed to provide reasonable assurance that assets are safeguarded, transactions are properly authorized and recorded in compliance with legislative and regulatory requirements, and reliable financial information is available on a timely basis for preparation of the consolidated financial statements. These systems are monitored and evaluated by management (and by the Board’s internal auditors).

The Board meets with management and the external auditors to review the consolidated financial statements and discuss any significant financial reporting or internal control matters prior to their approval of the consolidated financial statements.

The consolidated financial statements have been audited by ………………………, independent external auditors appointed by the Board. The accompanying Auditors’ Report outlines their responsibilities, the scope of their examination and their opinion on the Board’s consolidated financial statements.

__________________ ____________________

Director of Education Chief Financial Officer

November xx, 2010

(Same date as Auditors’ Report)

ILLUSTRATIVE EXAMPLES OF NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended August 31, 2010

1. SIGNIFICANT ACCOUNTING POLICIES

The consolidated financial statements are prepared by management in accordance with generally accepted accounting principles established by the Public Sector Accounting Board of The Canadian Institute of Chartered Accountants.

Reporting Entity

The consolidated financial statements reflect the assets, liabilities, revenues and expenses of the reporting entity. The reporting entity is comprised of all organizations accountable for the administration of their financial affairs and resources to the Board and which are controlled by the Board.

School generated funds, which include the assets, liabilities, revenues and expenses of various organizations that exist at the school level and which are controlled by the Board are reflected in the consolidated financial statements.

Consolidated entities –

Organization A

Organization B

Organization C

Transportation Consortium

School Generated Funds

Interdepartmental and inter-organizational transactions and balances between these organizations are eliminated.

Trust Funds

Trust funds and their related operations administered by the Board are not included in the consolidated financial statements as they are not controlled by the Board.

Basis of Accounting

Revenues and expenses are reported on the accrual basis of accounting. The accrual basis of accounting recognizes revenues as they are earned and measurable; expenses are the cost of goods and services consumed in the period whether or not payment has been made or invoices received.

Cash and Cash Equivalents

Cash and cash equivalents comprise of cash on hand, demand deposits and short-term investments. Short-term investments are highly liquid, subject to insignificant risk of changes in value and have a short maturity term of less than 90 days.

Investments

Temporary investments consist of marketable securities which are liquid short-term investments with maturities of between three months and one year at the date of acquisition, and are carried on the Consolidated Statement of Financial Position at the lower of cost or market value.

Long-term investments consist of investments that have maturities of more than one year. Long-term investments are recorded at cost, and assessed regularly for permanent impairment.

Deferred Revenue

Certain amounts are received pursuant to legislation, regulation or agreement and may only be used in the conduct of certain programs or in the delivery of specific services and transactions. These amounts are recognized as revenue in the fiscal year the related expenditures are incurred or services performed.

Retirement and other employee future benefits

[Boards may have a different note depending on the benefits they provide. Boards to work with actuaries and auditors as per their specific circumstances.]

The Board provides defined retirement and other future benefits to specified employee groups. These benefits include pension, life insurance, and health care benefits, dental benefits, retirement gratuity, worker’s compensation and long-term disability benefits [include only those relevant to the Board]. The Board has adopted the following policies with respect to accounting for these employee benefits:

i) The costs of self insured retirement and other employee future benefit plans are actuarially determined using management’s best estimate of salary escalation, accumulated sick days at retirement, insurance and health care costs trends, disability recovery rates, long-term inflation rates and discount rates.

For self insured retirement and other employee future benefits that vest or accumulated over the periods of service provided by employees, such as retirement gratuities and life insurance & health care benefits for retirees, the cost is actuarially determined using the projected benefits method prorated on service. Under this method, the benefit costs are recognized over the expected average service life of the employee group. Any actuarial gains and losses related to the past service of employees are amortized over the expected average remaining service life of the employee group.

For those self insured benefit obligations that arise from specific events that occur from time to time, such as obligations for worker’s compensation, long-term disability and life insurance & health care benefits for those on disability leave, the cost is recognized immediately in the period the events occur. Any actuarial gains and losses that are related to these benefits are recognized immediately in the period they arise.

ii) The costs of multi-employer defined pension plan benefits, such as the Ontario Municipal Employees Retirement System pensions, are the employer’s contributions due to the plan in the period;

iii) The costs of insured benefits are the employer’s portion of insurance premiums owed for coverage of employees during the period.

h) Tangible Capital Assets

Tangible capital assets are recorded at historical cost less accumulated amortization. Historical cost includes amounts that are directly attributable to acquisition, construction, development or betterment of the asset, as well as interest related to financing during construction. When historical cost records were not available, other methods were used to estimate the costs and accumulated amortization.

Leases which transfer substantially all of the benefits and risks incidental to ownership of property are accounted for as leased tangible capital assets. All other leases are accounted for as operating leases and the related payments are charged to expenses as incurred.

Tangible capital assets, except land, are amortized on a straight line basis over their estimated useful lives as follows:

Asset Estimated Useful Life in Years

Land improvements with finite lives 15

Buildings and building improvements 40

Portable Structures 20

Other Buildings 20

First–time equipping of schools 10

Furniture 10

Equipment 5-15

Computer hardware 5

Computer software 5

Vehicles 5-10

Leasehold improvements Over the lease term

Assets under construction are not amortized until the asset is available for productive use.

Land permanently removed from service and held for resale is recorded at the lower of cost and net realizable value. Cost includes amounts for improvements to prepare the land for sale or servicing. Building permanently removed from service ceases to be amortized and the carrying value is written down to its residual value.

Works of art and cultural and historic assets are not recorded as assets in these consolidated financial statements.

i) Government Transfers

Government transfers, which include legislative grants, are recognized in the consolidated financial statements in the period in which events giving rise to the transfer occur, providing the transfers are authorized, any eligibility criteria have been met and reasonable estimates of the amount can be made.

j) Investment Income

Investment income is reported as revenue in the period earned.

When required by the funding government or related Act, investment income earned on externally restricted funds such as pupil accommodation, education development charges and special education forms part of the respective deferred revenue balances.

k) Long-term Debt (if applicable)

Long-term debt is recorded net of related sinking fund balances.

l) Budget Figures

Budget figures have been provided for comparison purposes and have been derived from the budget approved by the Trustees. The budget approved by the Trustees is developed in accordance with the provincially mandated funding model for school boards and is used to manage program spending with the guidelines of the funding model. Given differences between the funding model and generally accepted accounting principles established by the Public Sector Accounting Board, the budget figures presented have been adjusted to conform with this basis of accounting as it is used to prepare the consolidated financial statements. The budget figures are unaudited.

m) Use of Estimates

The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts 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. Accounts subject to significant estimates include ……. (list items here) Actual results could differ from these estimates.

2. CHANGE IN ACCOUNTING POLICIES

The Board has implemented Public Sector Accounting Board (“PSAB”) sections 1200 Financial Statement Presentation and 3150 Tangible Capital Assets. Section 1200 establishes general reporting principles and standards for the disclosure of information in government financial statements. Section 3150 requires governments to record and amortize their tangible capital assets in their financial statements. In prior years, tangible capital asset additions were expensed in the year of acquisition or construction.

The financial information recorded includes the actual or estimated historical cost of the tangible capital assets. Historical cost includes the costs directly related to the acquisition, design, construction, development, improvement or betterment of tangible capital assets. Cost includes overheads directly attributable to construction and development.

When historical cost records were not available, other methods were used to estimate the costs and accumulated amortization of the assets. The estimates for land and buildings were determined by the Ministry of Education using an estimation methodology called the Book Value Calculator, using historical information provided by the Board. Other assets classes are recorded as historical cost where adequate information was available. If adequate information was not available, an alternative method was used to estimate a reasonable cost.

This change has been applied retroactively and prior periods have been restated. This change in accounting policy has changed amounts reported in the prior period as follows:

Accumulated surplus at August 31, 2009:

Operating fund balance $

Capital fund balance

Reserve fund balance

School activities fund

Amounts to be recovered

Accumulated surplus, as previously reported $XX

Net book value of tangible capital assets recorded $XX

Accumulated surplus, as restated $XX

Annual surplus for the year ended August 31, 2009:

Change in net assets/(liabilities), as previously reported $

Plus: Capital Expenditure capitalized, previously expensed x

Less: Amortization expense not previously recorded (x)

Less: Loss on disposal of assets (x)

Plus: Gain on disposal of asset that has not been deferred x

Annual surplus/(deficit), as restated $

3. INVESTMENTS

Temporary investments are comprised as follows:

| |2010 |2009 |

| |Cost |Market Value |Cost |Market |

| |$ |$ |$ |Value |

| | | | |$ |

| | | | | |

|Investment A | | | | |

|Investment B | | | | |

| | | | | |

Long-term investments are comprised of [xxxx] that are recorded at cost. These investments are assessed regularly for impairment and are written down if a permanent impairment exists.

4. ACCOUNTS RECEIVABLE - GOVERNMENT OF ONTARIO

The Province of Ontario (Province) has replaced variable capital funding with a one-time debt support grant. Board (Name of board) will receive a one-time grant that recognizes capital debt as of August 31, 2010 that is supported by the existing capital programs. The Board will receive this grant in cash over the remaining term of the existing capital debt instruments.

The Board has an account receivable from the Province of Ontario of $xxx,xxx as at August 31, 2010 with respect to this one-time grant.

5. DEFERRED REVENUE

Revenues received and that have been set aside for specific purposes by legislation, regulation or agreement are included in deferred revenue and reported on the Consolidated Statement of Financial Position.

Deferred revenue set-aside for specific purposes by legislation, regulation or agreement as at August 31, 2010 is comprised of:

| |Balance as at August|Externally Restricted|Revenue recognized |Balance as at |

| |31, 2009 |Revenue and |in the period |August 31, 2010 |

| | |Investment income | | |

|Pupil Accommodation | | | | |

|Education Development Charges | | | | |

|Proceeds of Disposition | | | | |

|Special Education | | | | |

|Other [Boards may specify ex. | | | | |

|Energy Efficient] | | | | |

|Total Deferred Revenue | | | | |

6. RETIREMENT AND OTHER EMPLOYEE FUTURE BENEFITS

[Boards may have a different note depending on the benefits they provide. Boards to work with actuaries and auditors as per their specific circumstances.]

|Retirement and Other Employee Future | | | |

|Benefit Liabilities | | | |

| |2010 | |2009 |

| | | | | | |

| | |Other Employee |Total | |Total |

| |Retirement |Future Benefits |Employee Future | |Employee Future |

| |Benefits | |Benefits | |Benefits |

|Accrued Employee Future Benefit | | | | | |

|Obligations at August 31 |ee,eee |ee,eee |ee,eee | |ee,eee |

|Unamortized Actuarial Gains (Losses) at | | | | | |

|August 31 |(g,ggg) |- |(g,ggg) | |(g,ggg) |

|Employee Future Benefits | | | | | |

|Liability at August 31, |$ x,xxx |$ x,xxx |$ x,xxx | |$ xx,xxx |

|Retirement and Other Employee Future | | | |

|Benefit Expenses | | | |

| |2010 | |2009 |

| | | | | | |

| | |Other Employee |Total | |Total |

| |Retirement |Future Benefits |Employee Future | |Employee Future |

| |Benefits | |Benefits | |Benefits |

| | | | | | |

|Current Year Benefit Cost |$ nn,nnn |$ nn,nnn |$ nn,nnn | |$ nn,nnn |

| | | | | | |

|Interest on Accrued Benefit Obligation |aa,aaa |aa,aaa |a,aaa | |aa,aaa |

| | | | | | |

|Recognized Actuarial gains (losses) |b,bbb |b,bbb |b,bbb | |b,bbb |

|Employee Contributions | | | | |(aa,aaa) |

| |(aa,aaa) |(aa,aaa) |(aa,aaa) | | |

|Cost of (gain on) plan amendments | | | | | |

| |aa,aaa |aa,aaa |a,aaa | |aa,aaa |

| | | | | | |

|Recognition of unamortized actuarial | | | | | |

|losses (gains) on plan amendments |(aa,aaa) |(aa,aaa) |(aa,aaa) | |(aa,aaa) |

| | | | | | |

|Employee Future Benefits Expenses1 |$ xx,xxx |$ x,xxx |$ xx,xxx | |$ xx,xxx |

1 Excluding pension contributions to the Ontario Municipal Employees Retirement System, a multi-employer pension plan, described below.

Retirement Benefits

i) Ontario Teacher’s Pension Plan

Teachers and related employee groups are eligible to be members of Ontario Teacher’s Pension Plan. Employer contributions for these employees are provided directly by the Province of Ontario. The pension costs and obligations related to this plan are a direct responsibility of the Province. Accordingly, no costs or liabilities related to this plan are included in the Board’s consolidated financial statements.

ii) Ontario Municipal Employees Retirement System

All non-teaching employees of the Board are eligible to be members of the Ontario Municipal Employees Retirement System (OMERS), a multi-employer pension plan. The plan provides defined pension benefits to employees based on their length of service and rates of pay. The Board contributions equal the employee contributions to the plan. During the year ended August 31, 2010, the Board contributed $ xxx,xxx (2009 - $ yyy,yyy) to the plan. As this is a multi-employer pension plan, these contributions are the Board’s pension benefit expenses. No pension liability for this type of plan is included in the Board’s consolidated financial statements.

iii) Retirement Gratuities

The Board provides retirement gratuities to certain groups of employees hired prior to specified dates. The amount of the gratuities paid to eligible employees at retirement is based on their salary, accumulated sick days, and years of service at retirement. The Board provides these benefits through an unfunded defined benefit plan. The benefit costs and liabilities related to this plan are included in the Board’s consolidated financial statements.

iv) Retirement Life Insurance and Health Care Benefits

The Board continues to provide life insurance, dental and health care benefits to certain employee groups after retirement until the members reach 65 years of age. The Board provides these benefits through an unfunded defined benefit plan. The benefit costs and liabilities related to this plan are included in the Board’s consolidated financial statements.

Other Employee Future Benefits

i) Workplace Safety and Insurance Board Obligations

The Board is a Schedule 2 employer under the Workplace Safety and Insurance Act and, as such, assumes responsibility for the payment of all claims to its injured workers under the Act. The Board does not fund these obligations in advance of payments made under the Act. The benefit costs and liabilities related to this plan are included in the Board’s consolidated financial statements.

or

Workplace Safety and Insurance Board Obligations

The Board is a Schedule 1 employer under the Workplace Safety and Insurance Act and, as such, the Board insures all claims by its injured workers under the Act. The Board’s insurance premiums for the year ended August 31, 2010 were

$ x,xxx (2009 - $ y,yyy) and are included in the Board’s current year benefit costs. No liabilities for claims by its injured workers under the Act are included in the Board’s consolidated financial statements.

The workplace safety and insurance board obligations for employee future benefit plans as at August 31, 2010 are based on actuarial valuations for accounting purposes as at August 31, xxxx. These actuarial valuations were based on assumptions about future events. The economic assumptions used in these valuations are the Board’s best estimates of expected rates of:

| |2010 |2009 |

| |% |% |

|Inflation |x.x |x.x |

|Wage and salary escalation |x.x |x.x |

|Insurance and health care cost escalation |x.x |x.x |

|Discount on accrued benefit obligations |x.x |x.x |

ii) Long-term Disability Benefits

The Board provides long-term disability benefits including partial salary compensation and payment of life insurance premiums and health care benefits during the period an employee is unable to work or until their normal retirement date. The Board provides these benefits through an unfunded defined benefit plan. The benefit costs and liabilities related to this plan are included in the Board’s consolidated financial statements.

or

ii) Long-Term Disability Life Insurance and Health Care Benefits

The Board provides life insurance, dental and health care benefits to employees on long-term disability leave. The Board is responsible for the payment of life insurance premiums and the costs of heath care benefits under this plan. The Board provides these benefits through an unfunded defined benefit plan. The costs of salary compensation paid to employees on long-term disability leave are fully insured and not included in this plan.

The accrued benefit obligations for long-term disability life insurance and health care benefit plans as at August 31, 2010 are based on actuarial valuations for accounting purposes as at August 31, xxxx. These actuarial valuations were based on assumptions about future events. The economic assumptions used in these valuations are the Board’s best estimates of expected rates of:

| |2010 |2009 |

| |% |% |

|Inflation |x.x |x.x |

|Wage and salary escalation |x.x |x.x |

|Insurance and health care cost escalation |x.x |x.x |

|Discount on accrued benefit obligations |x.x |x.x |

[Optional disclosure below.]

The board has restricted a portion of its accumulated surplus for certain of these employee future benefit obligations in the amount of $xxx,xxx at August 31, 2010 (2009 $yyy,yyy).

iii) Sick Leave Benefits

The Board provides compensated absences from sick leave accumulations through an unfunded defined benefit plan. The benefit costs expensed in the financial statements are $xxx,xxx (2009 - $yyy,yyy).

The accrued benefit obligations for sick leave benefits as at August 31, 2010 are based on actuarial valuations for accounting purposes as at August 31, xxxx. These actuarial valuations were based on assumptions about future events. The economic assumptions used in these valuations are the Board’s best estimates of expected rates of:

| |2010 |2009 |

| |% |% |

|Inflation |x.x |x.x |

|Wage and salary escalation |x.x |x.x |

|Insurance and health care cost escalation |x.x |x.x |

|Discount on accrued benefit obligations |x.x |x.x |

iv) Life Insurance Benefits

The Board provides a separate life insurance benefits plan for certain retirees. The premiums are based on the Board experience and employees are required to pay 100% of the premium costs. The benefit costs and liabilities related to the subsidization of these retirees under this group plan are included in the Board’s consolidated financial statements.

The accrued benefit obligations for life insurance benefit plans as at August 31, 2010 are based on actuarial valuations for accounting purposes as at August 31, xxxx. These actuarial valuations were based on assumptions about future events. The economic assumptions used in these valuations are the Board’s best estimates of expected rates of:

| |2010 |2009 |

| |% |% |

|Inflation |x.x |x.x |

|Wage and salary escalation |x.x |x.x |

|Insurance and health care cost escalation |x.x |x.x |

|Discount on accrued benefit obligations |x.x |x.x |

v) Health Care and Dental Benefits

The Board sponsors a separate plan for retirees to provide group health care and dental benefits. The premiums are based on experience or demographics of the group and employees are required to pay 100% of the premium costs.

7. NET LONG TERM DEBT

Debenture debt, capital loans and obligation under capital leases reported on the Consolidated Statement of Financial Position comprises of the following:

|  |2010 |2009 |

|Debenture #1 – description | xx | xx |

|Debenture #2 – description | xx | xx |

|Debenture #3 – Sinking Fund Debenture | xx | xx |

|Less: Sinking Fund Assets | xx | xx |

|Capital Lease |  xx |  xx |

|Balance as at August 31 |  xx | xx  |

[Include maturity date and interest rate in the description.]

Principal and interest payments relating to net debenture debt, capital loans and leases of $ XXX,XXX outstanding as at August 31, 2010 are due as follows:

|  |Principal and Sinking Fund|Interest Payments |Capital Lease Payments |Total |

| |Contributions | | | |

|2011 | xx | xx | xx | xx |

|2012 | xx | xx | xx | xx |

|2013 | xx | xx | xx | xx |

|2014 | xx | xx | xx | xx |

|2015 | xx | xx | xx | xx |

|Thereafter | xx | xx | xx | xx |

|Total | xx | xx | xx | xx |

(Retirement of sinking funds in the year that they mature is not included as payments in the above chart.)

Included in net debenture debt are outstanding sinking fund debentures of $ XXX,XXX (2009 - $XXX,XXX) secured by sinking fund assets with a carrying value of $ XXX,XXX (market value - $ XXX,XXX). Sinking fund assets are comprised of short-term notes and deposits, government and government-guaranteed bonds and debentures and corporate bonds.

Interest on long-term debt amounted to $XXX (2009- $XXX)

[Provide capital lease details if applicable.]

8. TEMPORARY BORROWING

[Boards may have a different note depending on the borrowing they incur. Boards to work with their auditors as per their specific circumstances.]

The Board has lines of credits available to the maximum of $xx million to address operating requirements [and/or] to bridge capital expenditures.

Interest on the operating facilities range from the bank’s prime lending rate plus x.xx% to the prime lending rate minus x.xx%, while banker’s acceptance facility range from the banker’s acceptance rate minus x.xx% to plus x.xx%. All loans are unsecured, due on demand and are in the form of bankers’ acceptance notes and bank overdrafts.

As at August 31, 2010, the amount drawn under the bankers’ acceptance facility was $x,xxx,xxx (2009- $xxx,xxx) at a rate of x.xx%.

9. Debt Charges and Capital Loans AND Leases Interest

2010 2009

Principal payments on long-term liabilities

including contributions to sinking funds $z,zzz,zzz……... $a,aaa,aaa…..

Interest payments on long-term liabilities $……………... $……………..

Interest payments on temporary financing

of capital projects $……………... $……………..

$========== $=========

Included in debt repayment and sinking fund contributions on the Consolidated Statement of Cash Flow in total of $x,xxx,xxx (2009 - $y,yyy,yyy) are principal payments on long-term debt of $z,zzz,zzz (2009 - $a,aaa,aaa) and sinking fund interest revenue of $b,bbb,bbb (2009 - $c,ccc,ccc).

10. EXPENSES BY OBJECT

The following is a summary of the expenses reported on the Consolidated Statement of Operations by object:

| |2010 |2010 |2009 |

| |Budget |Actual |Actual |

| |(Un-audited) | |(Restated) |

| | | | |

|Expenses: | | | |

| Salary and wages | xx | xx | xx |

| Employee benefits | xx | xx | xx |

| Staff development | xx | xx | xx |

| Supplies and services | xx | xx | xx |

| Interest charges on capital | xx | xx | xx |

| Rental expenses | xx | xx | xx |

| Fees and contract services | xx | xx | xx |

| Other | xx | xx | xx |

| Transfer to other boards | xx | xx | xx |

| Amortization of tangible capital assets | xx | xx | xx |

| Gain/loss on disposal | xx | xx | xx |

11. BOARD PERFORMS DUTIES OF A MUNICIPAL COUNCIL

The board performs the duties of levying and collecting taxes, conducting elections of members, etc. in territory without municipal organization. The outlay by the board in 2010 in respect of performing duties of municipal council is reported by area in a separate statement.

Certain costs are recoverable through a levy on all rateable property in the area and other approved costs are recoverable through an offset to the local taxation revenue.

12. TANGIBLE CAPITAL ASSETS

|  |Cost | |Accumulated Amortization | |Net Book Value |

|  |

|For the year ended August 31 |

|  |2009-10 Budget |Change |Restated 2009-10 Budget |

|Total Revenue |xx | |xx |

| | | | |

|EXPENSES | | | |

|Total Expenditure As in the 2009-10 Budget |xx | | |

|Less: Capital Asset Expenditure | |xx | |

|Plus: Amortization | |xx | |

|Total Expenses |xx | |xx |

| | | | |

|Annual Surplus/(Deficit) |xx | |xx |

| | | | |

|Accumulated Surplus / (Deficit) at beginning of |xx | |xx |

|year | | | |

| | | | |

|Accumulated Surplus / (Deficit) at end of year |xx | |xx |

13. PARTNERSHIP IN [NAME] TRANSPORTATION CONSORTIUM:

Transportation Consortium

[Full Partner in a Separate Legal Entity example-delete prior to publishing note]

On [date] the [transportation consortium (TC) name] was incorporated. On [date], the Board entered into an agreement with …Board in order to provide common administration of student transportation in the Region. This agreement was executed in an effort to increase delivery efficiency and cost effectiveness of student transportation for each of the Boards. Under the agreement created at the time (TC name) was established, decisions related to the financial and operating activities of (TC name) are shared. No partner is in a position to exercise unilateral control.

This entity is proportionately consolidated in the Board’s consolidated financial statements whereby the Board’s pro-rata share of assets, liabilities, revenues and expenses of the consortium are included in the Board’s consolidated financial statements. Inter-organizational transactions and balances have been eliminated.

The following provides condensed financial information.

2010 2009

Board Board

Total Portion Total Portion

$ $ $ $

Financial Position:

Financial Assets

Liabilities

Non-Financial Assets

Accumulated Surplus/(Deficit)

Operations:

Revenues

Expenses

Annual Surplus/(Deficit)

OR

Transportation Consortium

[Full Partner in a Consortium Agreement Example – delete prior to publishing note]

On [date], the Board entered into an agreement with …Board in order to provide common administration of student transportation in the Region. This agreement was executed in an effort to increase delivery efficiency and cost effectiveness of student transportation for each of the Boards. Under the agreement, decisions related to the financial and operating activities of (TC name) are shared. No partner is in a position to exercise unilateral control.

The Board’s consolidated financial statements reflect proportionate consolidation, whereby they include the assets that it controls, the liabilities that it has incurred, and its pro-rata share of revenues and expenses.

The following provides condensed financial information.

2010 2009

Board Board

Total Portion Total Portion

$ $ $ $

Financial Position:

Financial Assets

Liabilities

Non-Financial Assets

Accumulated Surplus/(Deficit)

Operations:

Revenues

Expenses

Annual Surplus/(Deficit)

14. FUTURE ACCOUNTING FOR CONTRIBUTIONS USED FOR CAPITAL:

In the Ministry of Finance Addendum to the 2010 Ontario Budget: Ontario's Plan to Enhance Accountability, Transparency and Financial Management, the government provided direction to school boards on the accounting treatment of capital contributions. This addendum proposes that, effective the fiscal year beginning on September 1, 2010, school boards in Ontario will adopt accounting policies consistent with the Province of Ontario, which include a policy to recognize government transfers and external contributions used in the acquisition of tangible capital assets over the period that the asset is expected to provide service. This policy is to ensure consistency with the current practice of senior governments in Canada and other major broader public-sector organizations (hospitals, colleges and universities), and to ensure that school board operating surpluses or deficits are not distorted by capital grant revenues.

This accounting treatment is not currently a recognized option by the Public Sector Accounting Standards Board (PSAB) and could not be implemented within these financial statements.

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