The Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants (CICA) issues recommendations and guidance with respect to matters of accounting in the public sector. These standards are included in the CICA Public Sector Accounting Handbook (CICA PSA Handbook). The Ontario government follows PSAB financial accounting and reporting standards and local municipalities adopted PSAB standards in 2000.

In July, 2003, the ministry set up a workgroup to review the implications of moving to the PSAB standards for school board financial accounting and reporting. The working group recommended unanimously the implementation of PSAB for local government effective with the 2003-04 school year.

The ministry informed school boards in March 2004, that they will be required to adopt Public Sector Accounting Board (PSAB) recommendations for local governments as the financial reporting standard, effective with the preparation of financial statements for the 2003- 04 school year with a one year delay in consolidating school generated funds in their financial statements.