EFIS Instructions
2024-25
2024-25 Financial Statements
Appendices
Appendix D1/D2

Appendix D1 and D2 - Education Development Charges (EDC) Continuity

TAB: App. D1 - EDC

Input the Education Development Charges (EDC) information by by-law. Where there are insufficient columns to report all by-laws, please report the major five by-laws separately and summarize the remainder of the by-laws in column 6. As indicated in Memorandum 2019: B20, the amendments to the Education Act and O. Reg. 20/98 (Education Development Charges - General) allow for the application of EDC revenues to support lower-cost alternatives to site acquisition. These alternative projects may include depreciable assets.

Appendix D1 calculates the amount of EDC expenditures that can be recognized as revenue or transferred to deferred capital contributions (DCC) in the school year. The summarized information is populated to the EDC column/line on Schedules 3, 3A, and 5.1.

  • Description: Input a description of each EDC by-law in the columns. Values from the prior year’s Financial Statements are preloaded and can be adjusted, if required.
Opening Balances

  • Item 1.0 preloads the deferred revenue opening balances for any EDC by-law that had a closing balance in the previous year. This line is adjustable and can be used in cases where a school board had a restatement of their prior year’s closing deferred revenue balance. The total amount in column 7 of this line is loaded to Schedule 5.1, item 13.5, column 1 (Deferred Revenue - Balance at September 1).

  • Item 1.0.1 can be used for non-material adjustments to the deferred revenue opening balance. The total amount in column 7 of this line is loaded to Schedule 5.1, item 13.5, column 2.1 (Deferred Revenue - Adjustment).

  • If any EDC by-laws have opening deficits due to overspending in previous years, these are preloaded to adjustable cells at items 1.1, 1.2, and 1.2.1:

    • Item 1.1 is the opening balance of accumulated eligible expenditures related to spending on depreciable assets, and is preloaded from the 2023-24 Appendix D1 closing balance at item 5.2.
    • Item 1.2 is the opening balance of accumulated eligible expenditures related to spending on non-depreciable assets and operating expenses, and is preloaded from the 2023-24 Appendix D1 closing balance at item 5.3.
    • Item 1.2.1 is the opening balance of accumulated eligible expenditures related to ARO abatement, and is preloaded from the 2023-24 Appendix D1 closing balance at item 5.4.

  • Item 1.3 is for school boards to report the adjustment to the accumulated eligible expenditures, if any, related to disposed land during the school year. The adjustment represents the unfunded portion of the disposed land. As the asset is being disposed, there should be no more accumulated eligible expenditures on the related assets in the calculation of the revenue recognition and deferred revenue balance.

EDC Inflows

  • Items 2.1 and 2.2 are for school boards to input their EDC inflows in the year from residential and non-residential sources.

  • Item 2.4 is for school boards to report the past contributions received related to disposed EDC land that was not used for pupil accommodation and does not meet the conditions of disposal as stated at item 2.5. Any gain on the disposal should be reported as a contribution to POD-Regular deferred revenues.

  • Item 2.5 is for reporting any sales proceeds on EDC land acquired after March 29, 2019, which has not been used to provide pupil accommodation. Per Memorandum 2019:B11, these amounts will be returned to EDC deferred revenue. See the Fall 2011 Training Session slides for the journal entries supporting the proceeds of disposition transactions.

EDC Expenditures

EDC expenditures are reported at items 3.1 to 3.10.

  • Item 3.2.1 is for ARO Abatement: Input the ARO abatement spending funded by EDC.

  • Items 3.3 and 3.4 are for reporting expenditures related to alternative projects.

  • At item 3.11, please enter the portion of total EDC expenditures (from item 3.10) that are operating in nature.

    • The lesser of item 3.11 and item 4.4.2 (EDC Amount Transferred to Revenue related to Current Year Expenditures - Non-ARO) populates Schedule 3A, item 1.3 (Amounts Used to Fund Eligible Operating), column 16.
Revenue Recognition and Transfer to DCC

Items 4.0 to 4.4.2 are used to determine how EDC revenues and transfers to DCC are recorded in the year.

  • Item 4.0 calculates the total amount that may be recognized in revenue or transferred to DCC in the year. It is calculated as the lesser of (items 1.0 + 1.0.1 + 2.8) and (items 3.10 - 1.1 - 1.2 - 1.2.1 - 1.3), 0 if negative.

  • Items 4.1 to 4.2.2 are for recording EDC transfers to revenue and/or DCC related to expenditures from previous years:

    • Input amounts to be transferred to DCC related to prior year expenditures at item 4.1. Note that the value here should not exceed the opening balance of depreciable accumulated eligible expenditures at item 1.1, for each EDC by-law; this is enforced through Error_App_D1_1.

      • The sum of items 4.1 and 4.2.2, column 7, populates Schedule 3A, item 1.3.1 (Amounts Applied to Prior Years’ Expenditures - Non-ARO), column 16.

    • Input amounts to be transferred to revenue related to prior year ARO expenditures at item 4.2.1. Note that the value here should not exceed the opening balance of ARO accumulated eligible expenditures at item 1.2.1, for each EDC by-law; this is enforced through Error_App_D1_4.

      • The total in column 7 populates Schedule 3A, item 1.3.3 (Amounts Applied to Prior Years’ Expenditures - ARO), column 16.

    • Item 4.2.2 (EDC Amount Transferred to Revenue related to Prior Year Expenditures - Non-ARO) is calculated as the lesser of item 4.0 (Total EDC Revenue Recognition and Transfer to DCC) and the absolute value of (the sum of items 1.1 to 1.3 minus items 4.1 and 4.2.1). Error_App_D1_2 ensures that the value calculated here does not exceed the sum of the opening balance of non-depreciable accumulated eligible expenditures (item 1.2) and any adjustments to accumulated eligible expenditures on EDC land disposed (item 1.3), for each EDC by-law.

      • The sum of items 4.1 and 4.2.2, column 7, populates Schedule 3A, item 1.3.1 (Amounts Applied to Prior Years’ Expenditures - Non-ARO), column 16.

    • Input amounts to be transferred to DCC related to current year expenditures at item 4.3. Note that the value here should not exceed the current year expenditures on depreciable alternative projects at item 3.3, for each EDC by-law; this is enforced through Error_App_D1_3.

      • The total in column 7 populates Schedule 3A, item 3.2 (Application of Deferred Revenue - Non-Land), column 16.

    • Input amounts to be transferred to revenue related to current year ARO expenditures at item 4.4.1. Note that the value here should not exceed the current year ARO expenditures at item 3.2.1, for each EDC by-law; this is enforced through Error_App_D1_5.

      • The total in column 7 populates Schedule 3A, item 1.3.2 (Amounts Applied to ARO Abatement Spending), column 16.

    • Item 4.4.2 (EDC Amount Transferred to Revenue related to Current Year Expenditures - Non-ARO) is calculated as item 4.0 minus items 4.1 to 4.4.1.

      • The total in column 7, minus the amount input at item 3.11 for EDC operating expenses, populates Schedule 3A, item 3.1 (Application of Deferred Revenue - Land), column 16.

  • The sum of items 4.2.1, 4.2.2, 4.4.1, and 4.4.2 flows to Schedule 5.1, item 13.5, column 6 as the EDC transfer to revenue.

Closing Balances

Items 5.0 to 5.4 calculate the closing balances of deferred revenue and/or accumulated eligible expenditures for each EDC by-law. These values will be preloaded to next year’s Appendix D1 as the opening balances at items 1.0 to 1.2.1.

TAB: App. D2 - EDC per Site

Report supplementary information on EDC eligible capital expenditures and financing for each site or alternative project in this tab.

TAB: App. D2 - EDC Capital Cost

Report supplementary information on long term debt obligation on EDC eligible capital expenditures in this tab.

Relationship to other schedules:

  • The total expenditures at item 3.10 less items 3.2.1 (ARO Abatement), 3.3 (Alternative Projects - Depreciable), and 3.11 (Total EDC Eligible Operating Expenses) populate Schedule 3, item 1.1 (Land), column 16.
  • The total expenditures at item 3.3 (Alternative Projects - Depreciable) populates Schedule 3, item 1.2 (Buildings and Other Non-Moveable Type Assets), column 16.
  • The lesser of item 3.11 (Total EDC Eligible Operating Expenses) and item 4.4.2 (EDC Amount Transferred to Revenue related to Current Year Expenditures - Non-ARO) populates Schedule 3A, item 1.3 (Amounts Used to Fund Eligible Operating), column 16.
  • The total amount at item 4.2.1 (EDC Amount Transferred to Revenue Related to Prior Year Expenditures - ARO) populates Schedule 3A, item 1.3.3 (Amounts Applied to Prior Years’ Expenditures - ARO), column 16.
  • The sum of items 4.1 (EDC Amount Transferred to DCC related to Prior Year Expenditures) and 4.2.2 (EDC Amount Transferred to Revenue related to Prior Year Expenditures - Non-ARO) populates Schedule 3A, item 1.3.1 (Amounts Applied to Prior Years’ Expenditures - Non-ARO), column 16.
  • The total amount at item 4.3 (EDC Amount Transferred to DCC related to Current Year Expenditures) populates Schedule 3A, item 3.2 (Application of Deferred Revenue - Non-Land), column 16.
  • The total amount at item 4.4.1 (EDC Amount Transferred to Revenue related to Current Year Expenditures - ARO) populates Schedule 3A, item 1.3.2 (Amounts Applied to ARO Abatement Spending), column 16.
  • The total value at item 4.4.2 (EDC Amount Transferred to Revenue related to Current Year Expenditures - Non-ARO), minus the amount input at item 3.11 for EDC operating expenses, populates Schedule 3A, item 3.1 (Application of Deferred Revenue - Land), column 16.
  • The sum of items 4.2.1, 4.2.2, 4.4.1, and 4.4.2 flows to Schedule 5.1, item 13.5, column 6 as the EDC transfer to revenue.
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Appendix B1Appendix E