Schedule 10ADJ - Adjustments for Compliance Purposes
This schedule shows the adjustments required to arrive at “adjusted expenses for compliance purposes”. This is the amount that must be included as expenses in the financial statements of the board under Section 231 of the Education Act, and in Data Form D for variance calculation purposes. The adjustments are detailed in O. Reg. 488/10 (Determination of Boards’ Surpluses and Deficits). Adjustments input on Schedule 10ADJ correspond to expense amounts on Schedule 5, column 3 (In-Year Increase (Decrease)) in the Unavailable for Compliance section.
Column 21: Increase (Decrease) Unfunded Liabilities - Interest Accrued, School Generated Funds (SGF), Contaminated Sites
This column is mostly used to record the school board’s interest accrual in the year, which is excluded from compliance and loaded to Schedule 5, item 4.2, column 3. Additionally, two adjustments are loaded to this column related to school generated funds expenses and reductions to the September 1, 2014 contaminated sites liability.
Interest Accrued
Interest expenses include the accrual amount to year-end, not just the cash payment during the year. This is the amount that should be recorded on Schedule 10. To the extent that this amount differs from the amount paid, the offsetting difference is recorded in this column. If the PSAB expense for long-term capital debt supported by the ministry is greater than the amount paid in cash, the unfunded liability has increased, which is recorded as a positive number on Schedule 10ADJ. The total value at item 90, less the values that are prepopulated to items 79 (School Generated Funds Expenses) and 78 (Other Non-Operating Expenses), is loaded to Schedule 5, item 4.2, column 3.
School Generated Funds
Expenses related to school generated funds are excluded for compliance purposes and are populated in this column at item 79 from Schedule 14, item 2.5, column 3. The corresponding revenues are excluded from compliance on the Compliance Report at item 2.1.1.
Contaminated Sites
As the initial liability for contaminated sites as at September 1, 2014 is excluded from compliance, any in-year transactions which reduce the opening liability entered on Schedule 5, item 4.8, column 3, are also excluded from the compliance calculation. This is achieved by populating the amount at item 78 (Other Non-Operating Expenses), in this column.
Column 22: Amortization of Employee Future Benefits - Health, Dental, Life Insurance
During 2012, an amendment was made to Ontario Regulation 488/10 requiring the amortization of retirement health/dental/life insurance liabilities over 10 years or a shorter period, beginning during the 2012-13 school year. This was outlined in Memorandum 2012: B14. The Reconciliation Target (item 91) of this column is populated from Schedule 5, item 4.1.3, column 3. School boards should distribute this amount among the available lines as applicable.
Column 23: (Decrease) Unfunded Liabilities - Employee Benefits
The four-year phase-in of spending on benefits that do not relate to retirement gratuities and retirement health/dental/life insurance (i.e. long-term disability benefits, WSIB benefits and other) from cash to PSAB expense for budget compliance purposes was completed in 2015-16. These expenses are no longer excluded for compliance purposes.
However, if a school board would like to address the remaining unfunded non-retirement gratuity related employee benefits using its in-year surplus/deficit, they could report the amount in this column. The total of this column is loaded to Schedule 5, column 3, item 4.1.4.
Column 24: Amortization of Employee Future Benefits - Retirement Gratuity liability
School boards are required to fully address their unfunded retirement gratuity liability over the EARSL of eligible employees under the plan, or a shorter period. The Reconciliation Target (item 91) of this column is populated from Schedule 5, item 4.1.1, column 3. School boards should distribute this amount among the available lines as applicable.
Column 25: Employee Future Benefits Adj.
The adjustment loaded to the Reconciliation Target (item 91) in this column is the value from Schedule 5, column 3, item 4.1.2. School boards should allocate the adjustment amount in column 25 using the same proportion that they allocated to the amortization of employee future benefits retirement gratuity liability (column 24), the amortization of employee future benefits - Health, Dental, Life Insurance Sept 1 Liability (column 22) and/or the decrease unfunded liabilities - employee benefits (column 23) to show savings towards the liability for the employee future benefits.
Column 26: Committed Sinking Fund Interest Earned Adj and column 27 - Committed Capital Projects Adj
The values loaded to the Reconciliation Target (item 91) in these columns are from Schedule 5, column 3, items 4.3 (for committed sinking fund interest) and 4.5 (for committed capital). School boards should allocate these amounts in instruction, administration, transportation, pupil accommodation or other, depending on how the committed capital or sinking fund debentures were spent. For example, if the committed capital relates to 100% school buildings, the full amortization goes to the pupil accommodation category. If the sinking fund amount relates to 50% board administration building, and 50% school building, then 50% goes to pupil accommodation and 50% to board administration.
Column 28: ARO In-year Expenses
The amounts in this column are loaded from Schedule 10, sum of columns 13 and 14. There is no data entry required in this column.
Column 29: Total Expenses Adjustments
This column is the sum of all adjustment columns on Schedule 10ADJ: columns 21, 22, 23, 24, 25, 26, 27, and 28.
Column 20: Total Expenses
These are the expenses populated from Schedule 10 (Expenses), column 20 (Total Expenses).
Column 30: Total Expenses for Compliance
This is the sum of column 29 (Total Expenses Adjustments), and column 20 (Total Expenses). The total of this column is used in the compliance calculation in the Compliance Report, and the details from this column are used in Data Form D.