Section 1C - Delayed Grant Payment

Section 1C calculates the cash flow adjustments that a school board may be subject to under the cash management strategy, first communicated in Memorandum 2018: B06. Further details were provided in Memorandum 2018: SB05 and Memorandum 2018: SB19.

There are two types of Delayed Grant Payment (DGP) amounts:

  • Delayed Grant Payment - Operating (DGP-Operating), which is updated only in Financial Statements cycles, and
  • Delayed Grant Payment - POD (DGP-POD), which is updated only in Estimates and Revised Estimates cycles.

In all cycles, a DGP continuity schedule reconciles the total DGP values between board-submitted and FO-reviewed versions.

Section 1C - Delayed Grant Payment - Operating

The Delayed Grant Payment amount for operating (DGP-Operating) is updated annually in the Financial Statements cycle.

DGP-Operating is calculated using a sliding scale based on the adjusted accumulated surplus and deferred revenues (ASDR) balance, which is intended to provide a proxy of cash available to school boards.

The ASDR balance calculation starts with the total closing balances of operating accumulated surplus (Schedule 5, item 5, col. 4) and deferred revenues (Schedule 5.1, item 20, col. 7), then deducts the following:

  • The accumulated surplus (deficit) closing balances related to committed sinking fund interest earned, committed capital projects, and amounts that are unavailable for compliance (Schedule 5, items 2.20.1, 2.21.2, and 4, col. 4).

  • The deferred revenue closing balances related to third party grants (Schedule 5.1, items 4 and 13, col. 7).

  • The tuition fees receivable at year end from First Nations (Schedule 7, item 1.4.6, col. 1).

Item 3.0 then calculates the ASDR balance as a percentage of the operating allocation. Based on this percentage, the DGP-Operating value is calculated using a sliding scale:

  • The portion of the ASDR balance equal to 5% or less of the operating allocation will not be subject to delayed grant payment.

  • The portion of the ASDR balance between 5.01% and 10% of the operating allocation will be subject to delayed grant payment at a rate of 80%.

  • Any portion of the ASDR balance exceeding 10% of the operating allocation will be subject to delayed grant payment in its entirety.

Item 4.3 adds up the total DGP-Operating value based on these percentages. Item 4.5 is the final calculation of DGP-Operating in the current year, and is equal to item 4.3 less the ministry adjustment value (if any) input at item 4.4.

Item 4.6 loads the DGP-Operating balance from the ministry-reviewed 2023-24 Financial Statements, Section 1C DGP Operating, item 4.5.

The change in DGP-Operating from the prior year’s Financial Statements is calculated at item 4.7. This value populates Section 1C DGP Continuity Schedule, item 2.1, column 1, which then populates Section 1B, item 7.1, to adjust the cash flowed to the school board in the year.

Section 1C - Delayed Grant Payment (DGP) Continuity

The DGP Continuity schedule includes FO adjustments to the DGP balance from FO reviews, as well as descriptive items to show data flows:

  • Item 1.0 displays the source doc set of the 2023-24 closing balances at items 1.1 and 1.3. Note that in the Revised Estimates, it may be updated automatically while a school board is completing its current submission, if EFIS detects a more recent prior year active submission becomes available.

  • Item 1.1 (Ending Balance at August 31, 2024 from Board Active Version) is loaded from Section 1C DGP Continuity Schedule, Board Active version of the source doc set, item 2.3 (Ending Balance at Aug 31, 2024).

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In the Financial Statements, the balance at item 1.1 (Ending balance at August 31, 2024 from Board Active Version), col. 3 (Total Delayed Grant Payment), flows to Schedule 7, item 1.4.7 (FP - Accounts Receivable - Delayed Grant Payment), col.2 (2023-24).
  • Item 1.2 (FO Adjustment for year 2023-24) shows the change to the prior year’s closing balance after FO reviews. It is calculated as item 1.3 - item 1.1.

  • Item 1.3 (Adjusted Opening Balance at September 1, 2024) is loaded from Section 1C DGP Continuity Schedule, FO Active version of the source doc set, item 2.3 (Ending Balance at Aug 31, 2024).

  • Item 2.1 (In-Year Change during 2024-25), col. 1 (Delayed Grant Payment - Operating):

    • In the Estimates and Revised Estimates cycles, this is zero.
    • In the Financial Statements, the value is loaded from Section 1C DGP - Operating, item 4.7 (Delayed Grant Payment - Operating - Change).
  • Item 2.1 (In- Year Change during 2024-25), col. 2 (Delayed Grant Payment - POD):

    • In the Estimates and Revised Estimates cycles, the value is loaded from Section 1C Delayed Grant Payment - POD, item 3.10 (Delayed Grant Payment - POD - Change).
    • In the Financial Statements, the value is loaded from the same location in the 2024-25 Revised Estimates, Board Active version.
  • Item 2.2 (FO Adjustment for year 2024-25) is visible only in the Financial Statements cycle, where it shows the current year changes made by the ministry from FO reviews in the 2024-25 Revised Estimates. It is calculated as item 2.3 minus item 1.3 minus item 2.1, and only impacts column 2 (Delayed Grant Payment - POD).

  • Item 2.3 (Ending balance at Aug 31, 2025), col. 1 (Delayed Grant Payment - Operating), is calculated as item 1.3 + item 2.1.

  • Item 2.3 (Ending balance at Aug 31, 2025), col. 2 (Delayed Grant Payment - POD):

    • In the Estimates and Revised Estimates, this is calculated as item 1.3 + item 2.1.
    • In the Financial Statements, the value is loaded from the same location in the 2024-25 Revised Estimates, FO Active version.
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In the Financial Statements, the balance at item 2.3 (Ending balance at Aug 31, 2025), col. 3 (Total Delayed Grant Payment), flows to Schedule 7, item 1.4.7 (FP - Accounts Receivable - Delayed Grant Payment), col.1 (2024-25).
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