support every child reach every student

2016 Ministry Information Sessions September 2016

2016 Ministry Information SessionsSeptember 2016

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Agenda 2015-16 Financial Statements and 2016-17 Revised Estimates Changes 2015-16 Notes to the Financial Statements Capital Analysis and Planning Template (CAPT) Update v6 School Condition Improvement (SCI) Reporting Teacher Q&E and Enrollment Audit Update Benefit Transformation Update Labour Data Requirements

Education Financial Information System (EFIS) – 2015-16 Financial Statements Changes

4

Labour related changes • Section 7 changes:

– FTE grid movement at beginning of the school year – Earned leave adjustment and corresponding back stop

adjustment – 1% lump sum – Early payout of retirement gratuity

• Section 10 change: – Only applicable to French boards – Professional Learning Community adjustments

5

Schedule 3

• New column for Child Care Capital – Data entry on Schedule 3.2, page 3

• Land lines closed for entry for: – New SCI – Restricted – New SCI – Unrestricted – POD – Regular

6

Schedule 3.1

• New column for Child Care Capital – Data entry on Schedule 3.2, page 3

7

Schedule 3.2

• Same changes as in 2016-17 Estimates: – Empty lines removed – New columns to track remaining approval room by

project, at start and end of current year – Remaining approval room and in-year approvals now

calculated on a project by project basis on this form, and forwarded to Schedule 3A, items 1.1 and 1.2

Schedule 3.2

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• New columns added for Operating Expenses – Demolition for Capital Priorities MCP and Land – To be used for non-capitalized demolition expenses – Approved demolition operating expenses forwarded

to Schedule 3A, item 1.3 • Capital Priorities Land: new columns for Land

Improvements with Finite Lives – Current year amounts forwarded to Schedule 3,

Buildings and Other Non-Moveable Type Assets

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Schedule 3.2 – Child Care Capital

• Operates similarly to Capital Priorities – Set up same as Capital Priorities MCP except

for lack of Operating Expenses – Demolition column

• First regulation table included in 2015-16 GSN

10

Schedules 3.4 & 3.5 • Land line has been closed for:

– New School Condition Improvement – Restricted (70%)

– New School Condition Improvement – Unrestricted (30%)

– POD – Regular • Memorandum 2016:B13:

– New School Renewal investment - $40 million – new SCI investments:

• $460 million in 2015-16 • $535 million in 2016-17

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Schedule 3.4 • The restricted/unrestricted % are 70% and 30%

now. • When reporting expenditures in VFA, choose budget

code for: – 2015-16 if using new 2015-16 SCI funding – 2014-15 if using SCI deferred revenues

• SCI expenditures reported in VFA will be loaded to EFIS in the first two columns 3 times a week from mid-September to end of October, 2016 (morning of Monday, Wednesday and Friday.

12

Schedule 3A • Capital Priorities MCP & Land:

– Item 1.3 Amounts Used to Fund Eligible Operating now included in the grant calculation. From Schedule 3.2, approved operating demolition expenses.

• New column for Child Care Capital • Land lines closed for New SCI, POD-Regular • Temporary Accommodation:

– Unspent allocation can be carried to next year

13

Schedule 3C

• Boards can now report write down of the cost of land with infinite life

• A new column is added to the detail assets input form which will be rolled up to the board level report.

14

Schedule 5.1 • Appendix E removed. Only one Education

Programs – Other (EPO) line. • Opening balance = the sum of 2014-15 closing

balance of “EPO Grants - Current Year”, EPO Grants – before 2014-15 and “OLE Grants”.

• Internal Audit – Capital line removed • Temporary Accommodation – now has closing

balance for unspent allocation.

Schedule 5.1

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• Lines for Green School Pilot, Renewable Energy, Energy Efficient Schools, Improved Access for Special Education are removed.

• Any 2014-15 closing balances on these lines should be put under a line in “Other Ministry of Education Grants”

16

Schedule 5.2 & 5.6

• Schedule 5.2: – Page 1 – new line for Child Care Capital

• Schedule 5.6 – New line added for Prior Years Capital Grant

Adjustments (non-EDC column)

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Schedule 10.7

• Schedule 10.7: – Contaminated Sites pre-Aug 31, 2014, in year

expenses column opened for negative input – To be used when board sells site without

addressing contamination, or when actual expenses less than estimated

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Schedule 10G • Page 3 is new which calculates the Ministry's

funding of the early payout of retirement gratuities and the related future funding adjustment.

• Page 1, continuity of the liabilities: a new column is added for early payout of retirement gratuity and related gain/loss. This is populated from the new page 3.

• Page 2, new lines to shows the unfunded liabilities of the retirement gratuities before and after the Ministry funding and gain/loss reported.

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Schedule 12

• Boards still need to input the enrolment data at board level.

• No OnSIS data load.

20

Section 1A & 1B • Capital Priorities MCP and Land Approved Demolition

Operating Expenses added as operating allocation • Operating allocation for compliance (1%) excludes the

Ministry funding on the early payout of the retirement gratuity.

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Section 7

• Q&E grid – movement at beginning of the school year.

• Labour related adjustments: – Early payout of retirement gratuities – 1% lump sum – Earned leave saving adjustment

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Section 7 – Earned leave adjustment

• French boards and Catholic boards only • Back stop adjustment will occur when

board’s 2015-16 average annual rate of permanent teachers' absenteeism by bargaining unit is higher than the board’s 2014-15 average annual rate of permanent teachers' absenteeism minus 1 day

Section 7 – Earned leave adjustment

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• Boards will need to record an expense and liability for leave that has been earned during 2015-16

• The expense should be included on Schedule 10 on the Classroom Teachers line, in the Salaries and Wages column (line 51, column 02)

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Section 9 &10

• Effectiveness and Efficiency Amount is added for eligible boards in Section 9

• Section 10 – Capital Planning Capacity Program continued – Labour related Professional Learning

Community adjustment for French boards only

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Section 11 • Capital Short Term Interest:

– New column for Child Care Capital • School Renewal

– New lines for new investments for capital renewal and maintenance amount

• Full Day Kindergarten: – Table amount now includes all prior years’ first time

equipping • Temporary Accommodation:

– Detail calculation moved to Data Form A.2

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Data Form A.2 • Internal audit - Capital portion removed • Strike savings input added to Mental

Health leader and LOG Student Achievement

• New form: – Temporary Accommodation

Data Form A.2

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• School Renewal – Additional table amounts added for 2015-16 and

2016-17: Capital Renewal & Maintenance – Maintenance table amount can be used on capital

school renewal expenditures or operating school renewal expenses

– Maintenance table amount not used for capital expenditures increases the cap for allowable operating expenses

– Any unused Maintenance table amount can be carried forward to future years

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Data Form D

• New column for labour related adjustments

• Column 1, added approved operating demolition cost under Capital Priorities at item 1.21

• Restraint savings on Board Admin., item 1.14 in column 7, is populated from Data Form A.2

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Appendix H • Additional reporting requirements (same as 2016-17 Estimates):

– October 31 and March 31 FTE – By bargaining/employee group – Exclusion adjustments on the bargaining employee group

• Report based on position, don’t include – Vacant positions – Hours relating to temporary assistance – Hours relating to overtime – Full-time staff currently on secondment, unpaid sabbatical leave or other

leave of absence without pay • Report actual FTE when available:

– Estimates: budgeted October/March FTE – Revised Estimates: Actual October FTE / budgeted March FTE – Financial Statements : Actual October/March FTE

• Trustees FTEs are loaded based on input in Section 10 including the student trustees

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Appendix E & J

• These appendices are removed

Education Financial Information System (EFIS) – 2016-17 Revised Estimates Changes

32

Schedule 3C

• Same as in 2015-16 Financial Statements, boards can now report write down of the cost of land with infinite life

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Schedule 10F • The Life Insurance column and Extended Health

Benefits – current employees column are combined into one column

• Boards should report both the premium expenses to insurance carrier and the contribution to the Benefit Trusts in this new column in 2016-17.

• Similarly, report premium and contribution for retired employees in the Retirement Health, Dental, Life insurance column

• From 2017-18 onward, report contribution to the Benefit Trusts in these columns.

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Section 7 • A line is added for boards to distribute the

annual funding adjustment related to the early payout of retirement gratuity between the Elementary and Secondary panel.

• The amount should be the same as the adjustment shown on 2015-16 Financial Statements, Schedule 10G, page 3.

• Data will be used to populate future cycles.

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Questions

2015-16 Notes to the Financial Statements

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Changes to Notes to FS Section Change Management Report Update (minor)

Note 1(j) – Government Transfers Update Note 2 - Changes in Acco. Policy Removed

Note 7(iii) – Retirement Gratuities New Subsection

Note 7(iv) – Retirement Life Insurance and Health Care Benefits

Update (minor)

Note 7 – Benefit Plan Future Changes New

Note 15 – Accumulated Surplus Update (Minor)

Note 22 – Subsequent Event Removed

management and

their

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Management Report • Clarification to wording in second last

paragraph: – The Audit Committee of the Board meets with

the external auditors to review the consolidated financial statements and discuss any significant financial reporting or internal control matters prior to the board’s approval of the consolidated financial statements.

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Note 1(j) – Government Transfers

• Clarification in the Significant Accounting Policies section. – If government transfers contain stipulations which

give rise to a liability, they are deferred and recognized in revenue when the stipulations are met.

– Government transfers for capital are deferred as required by Regulation 395/11, recorded as deferred capital contributions (DCC) and recognized as revenue in the consolidated statement of operations at the same rate and over the same periods as the asset is amortized.

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Note 2 - Changes in Acc. Policy • In the prior year notes (2014-15), school

boards implemented the Liability for Contaminated Sites standard.

• The Change in Accounting Policy note is removed since the change was only applicable last year, not in 2015-16.

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Note 7(iii) – Retirement Gratuities

• New subsection 1 for Voluntary Retirement Gratuity Early Payout Provision.

• Certain unionized and non-unionized school board employees, including principals and vice-principals could have taken a voluntary retirement gratuity early payout during 2015-16.

• Disclosure required since this results in a change in the board’s employee future benefit liability.

are

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Note 7(iv) – Retirement Benefits • Minor wording change to the Retirement

Life Insurance and Health Care Benefits section. – The premiums are based on the Board

experience and retirees’ premiums may be subsidized by the Board.

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Note 7 – Benefit Plan Future Changes • Note added to explain the Employee Life and Health

Trusts (ELHTs) being established in 2016-17. • The ELHTs will provide health, life and dental benefits to:

– teachers (excluding daily occasional teachers); – education workers (excluding casual and temporary staff); – other school board staff, and; – retired individuals.

• Benefits will be provided through a joint governance structure between the bargaining / employee groups, school board trustees associations and the Government of Ontario.

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Note 15 – Accumulated Surplus • Minor edit. • Under the examples for “amounts that may be

restricted for future use by board motion”, “sick leave” was removed due to the change in the way boards provide for sick leave.

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Note 22 – Subsequent Event • In 2014-15, boards recorded a subsequent

event note for the Voluntary Retirement Gratuity Early Payout Provision.

• This note is removed for 2015-16 since the subsequent event was only applicable last year.

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Questions

Capital Analysis and Planning Template (CAPT) v6

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Agenda

2014-15 CAPT Common Issues

2015-16 FS CAPT (v6) Changes

2015-16 CAPT (v6) Year End Submission

Approval To Proceed (ATP) Process

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Capital Analysis and Planning Template (CAPT)

Purpose Tracking system for capital projects Monitor boards’ unsupported capital spending and overall Capital Surplus/Deficit position Unsupported Capital Spending:

− TCA less DCC excluding land as per Schedule 5.3 Capital position (Surplus/Deficit):

− Unsupported Capital Spending less any revenue applied in the year as per Table 4a on the CAPT

Renewal/POD encumbrance Committed accumulated surplus Support tool for capital decisions Assessing financial implications at the Approval to Proceed stage Determining OFA long-term financing eligibility. PRRT (formally RBP) - Ministry forecasting

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2014-15FS CAPT (v6) Common Issues

CAPT submitted with Red Error Messages such as: Financial information does not agree to EFIS (i.e. NPF column total in

the Project Active worksheet does not reconcile with Section 12 of EFIS Line 12.37)

Incorrect re-assignment of Ministry Committed Funds (e.g. Build Capacity)

Capital Financial Position worksheet (FIN-FP): Table 1c (amounts to be constructed as Aug 31, 2015) was not

completed

Sum of funding source (Table 4a/4b) does not equal to the sum of total unsupported capital spending (Table 1a/1b/1c)

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2015-16FS CAPT (v6) Changes

Capital Financial Position worksheet: Tables 1

− Removed cell H17 “Other unsupported Capital Spending on capital projects – balance at August 31, 2016”

Table 1: Board Funded Spending on Capital Projects

($Millions) Total

Depreciable Assets:

Unsupported Capital Spending on Capital Projects - Balance at August 31, 2016 Sinking Fund Interest to be Earned EFIS 15-16 FS Sch 5.3 Line 2.1.1 Col 7 0.000

Depreciable Assets Excluding Minor Tangible Capital Assets EFIS 15-16 FS Sch 5.3 Line 2.1.2 Col. 7 + Line 2.2 Col. 7 excluding minor TCA amounts

0.000

Minor Tangible Capital Assets EFIS 15-16 FS Sch 5.3 Line 2.1.2 Col. 7 + Line 2.2 Col. 7 minor TCA amounts only

0.000

Other EFIS 15-16 FS Sch 5.3 Line 2.1.2 Col. 7 + Line 2.2 Col. 7 other than amts reported above

0.000

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2015-16FS CAPT (v6) Changes

POD – School Sites Worksheet: Removed row 104 “Total POD committed to Future Renewal projects (Not Requiring

ATP Approval)”

This worksheet only collects information on the amount of POD committed for approved projects (i.e. EFIS Schedule 5.1-Capital, lines 2.25 and 2.26). Boards do not need to report in this worksheet POD that are committed for future projects not requiring Ministry’s approval such as renewal type projects scheduled on September 1, 2015 or later (i.e. EFIS Schedule 5.1-Capital, line 2.26.1). Please refer to memo 2015:B13 “Proceeds of Disposition Policy” for more details.

Project Worksheets Actual or Projected Opening Year (Column 1.7) is now a drop down option box (YYYY-

YYYY). Boards are required to update the actual or projected opening date of the facility. (e.g. For new schools, the date should reflect the year in which enrolment is first reported at the new facility.) If land, the year of purchase is required.

Re-assignment of Ministry Committed Funds – New Construction Child Care (CC) Funding (Column 5.6) is added

− Similar to the treatment of FDK, boards’ child care allocation can only be used to address capital costs related to child care.

− If any of the CC funding is not required to complete a project, it may not be used to address cost overages for non-CC project but it can be used to address cost overrun of other CC projects.

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2015-16 Year End CAPT (v6) Submission Timeline

Anticipated release of the CAPT V6 is late September and it is required to be submitted to the Ministry by November 30th, 2016. financials.edu@ontario.ca

As in previous years, this submission includes board’s request for long-term financing with the Ontario Financing Authority (OFA), if required.

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Reminder - Approval To Proceed (ATP) Process

ATP process changed effective October 1, 2014 When boards submit a request for ATP to tender for a project, boards

are now required to complete the ATP Request Form. − Blank form is posted on the FAAB website https://efis.fma.csc.gov.on.ca/faab

− Completed form should be submitted to Capital Analyst and Financial Analyst

Once the ATP request is completed, your Capital Analyst and Financial Analyst will update the CAPT and send an updated copy back to the board for data verification.

Note: Boards are still required to complete a space template before engaging an architect. The Ministry still requires the board to submit a cost consultant report prior to tendering any capital projects. Please refer to Capital Approval Process Table on the FAAB website https://efis.fma.csc.gov.on.ca/faab for further clarification.

Assistance:

CAPT User Guide References for FIN-FP & FIN-SR worksheets are included in the template: FIN-FP User Guide worksheet FIN-SR User Guide worksheet

CAPT User Guide will be posted on the FAAB website. Capital Analysts and Financial Analysts will be available to assist boards in completing the CAPT For Questions Regarding ... Contact .. .

Error messages and S ubmission S ign -off Capital Ana lyst & F inancial Ana lyst Capita l Financia l Position Fina ncia l Ana lys t School Renew al Schedule Fina ncia l Ana lys t Proceeds of D isposition Fina ncia l Ana lys t Project Maste r - Project Active Capital Ana lyst Project Debenture Matrix Capital Ana lyst OFA Debenture F inancing Request (Part 1 & 2 ) Diamond Tsui, Capita l Ana lyst ATP Request Form Capital Ana lyst & F inancial Ana lyst

Https://efis.fma.csc/gov.on.ca/Contact_Us.htm

Boards can request one-on-one CAPT training, if required

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Thank You!

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School Condition Improvement (SCI) Reporting

School Condition Improvement Between 2011-12 and 2016-17, the Ministry has allocated almost $2.7B in SCI funding. This includes

the almost $1B in additional SCI funding for the 2015-16 and 2016-17 school years announced in June 2016.

Starting with the 2015-16 school year, SCI funding is being allocated in proportion to a board’s total assessed renewal needs as determined though the Condition Assessment Program.

Additional funding announced in June 2016, has been allocated in proportion to 2016-17 SCI tables. The ministry has revised the SCI funding split ratio from

80/20 to 70/30. 70% of a board’s allocation is to be directed to major

building components (e.g. foundations, roofs) and systems (e.g. HVAC and plumbing).

30% can address interiors, site improvements or continue to target major building components.

Existing: 80/20 Split

Revised: 70/30 Split

150 150 150250

500 500

460 535

0200400600800

10001200

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

NewBase

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Existing: 80/20 Split

Reporting: School Condition Improvement SCI Expenditures from 2011-12 to 2014-15 School Years

Renewal expenditures funded through SCI must be reported in TCPS/VFA.facility. The Ministry required boards to report all expenditures from these years by August 31, 2016.

Accumulated reported expenditures in TCPS/VFA.facility must be consistent with accumulated amounts reported in annual financial statements, as submitted in Education Finance Information System (EFIS).

School boards that fail to comply with this reporting requirement will be unable to access their 2016-17 School Renewal Allocation.

Based on the results of the 2011-12 SY to 2014-15 SY SCI reporting by boards in TCPS/VFA.facility vs EFIS, the Ministry has noted that there are still several boards with discrepancies in the amounts reported between these two systems. The Ministry is in the process of reviewing the reported expenditures and

will contact these boards in the near future.

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Reporting: School Condition Improvement2015-16 SCI Expenditures School boards with SCI funds in deferred revenue (from 2011-12 to 2014-15) are

required to deplete these reserves prior to accessing their 2015-16 allocation. Expenditures funded through deferred revenues (including interest earned on deferred

revenue and adjustments) must be reported in TCPS/VFA.facility using the 2014-15 SCI budget code.

Renewal expenditures funded through SCI must be reported in TCPS /VFA.facility. The Ministry will then upload the expenditures directly to EFIS three times a week from mid-September until October 31, 2016.

Unspent funds from a board’s 2015-16 allocation will be carried forward to future school years and will continue to be enveloped under the 70/30 rule.

On May 5th 2016, the Ministry met with finance and capital staff from six boards to review opportunities for refining and streamline reporting processes. We will be piloting options with these boards and will share any changes to the reporting process in the coming months.

2015-16 SCI Reporting Deadlines Expenditure Period First Upload to EFIS Last Upload to EFIS Cash Payment

Expenditure from: Expenditure to: April 1, 2016 August 31, 2016 Mid-September, 2016 October 31, 2016 February 2017

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School Renewal Allocation The School Operations and Renewal Grant is an annual $2.3B grant to support facility

operating, maintenance and renewal costs. 2017-18 school year, base top-up to be eliminated with full implementation of SBEM Per pupil grant that consists of two major allocations: School Operations Allocation - $2 billion annual Provided to school boards to fund heating, lighting, cleaning and maintaining of school

facilities. School Renewal Allocation (SRA) - $320 million annual Provided to school boards to fund day to day maintenance and repair of school facilities. SRA $40M Investment 2015-16 & 2016-17 In proportion to a board’s allocation for the school year Allocation split with 60% (minimum) of funds for capital & 40% maintenance (maximum)

Reporting: School Renewal Allocation

For the 2016-17 school year, the Ministry will be moving to mandatory reporting of all School Renewal Allocation expenditures that are capital in nature in VFA.facility.

All reported expenditures (as in-progress or completed projects) in TCPS/VFA.facility must match the reported expenditures in EFIS by January 31, 2018

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New Five-Year Assessment Cycle and Migration from TCPS to VFA.FacilityNew Five-Year Assessment Cycle

A new province-wide 5-year assessment cycle began in April 2016

Substantially all facilities assessed in 2011 that are still open and operating will be assessed in 2016

As with the previous 5-year cycle, not all boards will have facilities assessed in 2016

Migration from TCPS to VFA.facility VFA is in the process of migrating boards from TCPS to the VFA.facility database

Migrations are expected to be completed by September 2016

As of today, 55 boards have been migrated Boards are strongly encouraged to take advantage of VFA training resources for basic and

advanced user training in VFA, either in-class or by webinar.

Upcoming Training: Product Training : September 20-21, October 4-5

Finance Training: September 15, October 11

Advanced Training: September 12-13, October 18-19

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Teacher Q&E and Enrollment Audit Update

Overview

Teacher and Experience ( Q & E) Audits • Fall 2015 and Spring 2016 Audit Findings

Enrolment/ESL Audits • Fall 2015 and Spring 2016 Audit Findings • Alternative Programs

What is new • Register instruction revisions(clarification) for 2016-17 • Communication – enrolment@ontario.ca mailbox

Fall 2016 Audit Plan Enrolment Questions

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Q&E Audit Facts Fall 2015 and Spring 2016 • Number of school boards audited = 10

– 1 French Language – 4 Public – 5 Separate

• Positive audit adjustments – 3 School Boards

• Negative audit adjustments – 5 School Boards

• No adjustments with grant impact – 2 School Boards

• Funding implications – Largest negative adjustment $414,578 – Largest positive adjustment $61,188

Q&E Audit Facts Fall 2015 and Spring 2016

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Errors noted ranked by occurrence 1. early or late recognition of qualification upgrades 2. # of years of experience for new hires to the board that had not previously

taught were incorrectly increased on the movement grid 3. incorrect recognition of years of experience 4. unable to provide data to recreate grids as submitted to the ministry

Improvements noted from the previous audit cycles Isolated Errors vs Systematic Errors: reductions in the number of systematic errors from previous audit cycles Regulations: most school boards audited clearly understood the distinction between when the qualification is recognized for salary purposes versus when the qualification is recognized for grant purposes File Management: records supporting the placement of teachers on the grids was available and retained for audit purposes for most school boards

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Enrolment/ESL Audit Facts Fall 2015 and Spring 2016

• Number of school boards audited = 9 or 13% (one postponed to fall 2016) – 1 French Language – 4 Public – 4 Separate

• Number of schools audited – 10 secondary – 8 alternative delivery schools – zero elementary schools

Observations • majority of adjustments at the alternative delivery schools • still significant findings in the secondary schools with pupil prolonged

absences, pupil retirements, pupil full time equivalency

•

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Alternative Programs Programs that offer an alternative delivery method Observations consistent with previous cycles

– length of the instructional day – less than an average of 300 minutes of instruction available during the day for compulsory age students

– granting of credits – credits were granted with significantly less than the required hours of instruction ( funding implications)

– pupil FTE – pupils reported as full-time with less than and average of 210 minutes of classroom delivered instruction (funding is based on pupil’s timetable)

– students reported on the incorrect register – should be based on method of program delivery

New observations – students under 21 receiving instruction from continuing education

teachers reported on the day school register – students 21 and over receiving instruction from grid teachers reported

on the adult for credit con ed register

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Enrolment Register Instructions Changes and Clarifications

• New format including – a description of the current audit process – disclosure of the auditable areas for both the secondary and elementary

panels – examples of actual audit scenarios

• Significant clarification regarding – pupil prolonged absence retention requirements

• new decision trees – the use of the “C’ code for prolonged absences and SAL – the SAL process

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Example of Medical Scenario • Alice is 14 years of age and is unable to attend school on a regular basis for

medical reasons. • There is appropriate supporting medical documentation on file that states

that Alice will be unable to attend school from September 17th until October 16th. She is absent for 21 consecutive school days.

• Since the school has not provided a study program for Alice, record her absence with “A” in her Daily Attendance Record for the period of medical absence.

• Although Alice has exceeded 15 days of absence, her appropriate supporting medical documentation allows her name to remain on the register for the period of time specified in the documentation. If the date was not specified in her documentation, her name could remain on the register only up to the end of the current school year.

• Alice’s case does not need to be referred to the attendance counsellor.

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Week 1 Week 2 Week 3 Week 4 Week 5

Attendance card of medical scenario

M T W R F M T W R F M T W R F M T W R F M T W R F 01 02 03 04 05 08 09 10 11 12 15 16 17 18 19 22 23 24 25 26 29 30

H A1 A2 A3 A4 A5 A6 A7 A8 A9 A10

01 02 03 06 07 08 09 10 13 14 15 16 17 20 21 22 23 24 27 28 29 30 31 A11 A12 A13 A14 A15 A16 A17 A18 H A19 A20 A21

03 04 05 06 07 10 11 12 13 14 17 18 19 20 21 24 25 26 27 28

01 02 03 04 05 08 09 10 11 12 15 16 17 18 19 22 23 24 25 26 29 30 31

01 02 05 06 07 08 09 12 13 14 15 16 19 20 21 22 23 26 27 28 29 30

02 03 04 05 06 09 10 11 12 13 16 17 18 19 20 23 24 25 26 27

02 03 04 05 06 09 10 11 12 13 16 17 18 19 20 23 24 25 26 27 30 31

01 02 03 06 07 08 09 10 13 14 15 16 17 20 21 22 23 24 27 28 29 30 31

01 04 05 06 07 08 11 12 13 14 15 18 19 20 21 22 25 26 27 28

01 02 03 04 05 08 09 10 11 12 15 16 17 18 19 22 23 24 25 26 29 30 31

Attendance card of medical scenario

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Week 1 Week 2 Week 3 Week 4 Week 5 M T W R F M T W R F M T W R F M T W R F M T W R F

01 02 03 04 05 08 09 10 11 12 15 16 17 18 19 22 23 24 25 26 29 30

H A1 A2 A3 A4 A5 A6 A7 A8 A9 A10

01 02 03 06 07 08 09 10 13 14 15 16 17 20 21 22 23 24 27 28 29 30 31 A11 A12 A13 A14 A15 A16 A17 A18 H A19 A20 A21

03 04 05 06 07 10 11 12 13 14 17 18 19 20 21 24 25 26 27 28

01 02 03 04 05 08 09 10 11 12 15 16 17 18 19 22 23 24 25 26 29 30 31

01 02 05 06 07 08 09 12 13 14 15 16 19 20 21 22 23 26 27 28 29 30

02 03 04 05 06 09 10 11 12 13 16 17 18 19 20 23 24 25 26 27

02 03 04 05 06 09 10 11 12 13 16 17 18 19 20 23 24 25 26 27 30 31

01 02 03 06 07 08 09 10 13 14 15 16 17 20 21 22 23 24 27 28 29 30 31

01 04 05 06 07 08 11 12 13 14 15 18 19 20 21 22 25 26 27 28

01 02 03 04 05 08 09 10 11 12 15 16 17 18 19 22 23 24 25 26 29 30 31

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Communication • April 26, 2016 – memo sent out to the Enrolment and Admissions

Professionals. (OASBO and CESBA websites) • Notice regarding enrolment@ontario.ca mailbox. • First point of contact for stakeholder questions regarding enrolment

and admissions. • Please provide all relevant information to ensure a prompt, accurate

and helpful response. • The mailbox will be monitored by ministry staff and all questions will

be answered in a timely manner based on the Government of Ontario’s customer service standards.

• Acknowledgement of your email within two business days. • Endeavour to answer questions within 15 business days. • Effective May 1, 2016.

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Fall 2016 Audit Strategy Audit Strategy

• Six school boards selected for the 2016 fall audit cycle • Enrolment/ESL audit selection will continue to focus on secondary

schools and alternative programs delivery

Composition of Audits • Six Enrolment/ESL audits • no Q&E audits for the fall 2016 cycle (Q & E audits will resume in the

spring of 2017 for the 2015-16 school year)

Communication • notification letters to the Director of Education

•

•

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Questions?

• Questions regarding enrolment reporting should be directed to: enrolment@ontario.ca mailbox.

• Information Source Enrolment Register Instructions for Elementary and Secondary Schools and Continuing Education and Independent Study Enrolment Registers

http://www.edu.gov.on.ca/eng/policyfunding/forms.html

Benefit Transformation Update and Labour Data Requirements

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Purpose

I. To provide an overview of the roles and responsibilities of the Benefits Trust Branch (BTB), including: • Who we are • How we support the Ministry of Education’s priorities.

II. To discuss the implementation of the Employee Life and Health Trusts (ELHTs), including: A. An overview of trust agreements B. Interim and long-term funding

III. To provide an update on the Retirement Gratuity Early Payout option

IV. To discuss the collection of data for the next round of central bargaining

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1. Benefits Trusts Branch

Branch Overview

• The BTB coordinates the technical, legal, and administrative support in the establishment of the new benefits trusts for the education sector.

• The BTB provides advice and supports the central labour discussions and implements labour-related commitments arising out of the central labour discussions.

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How we are supporting the ministry’s priorities

CCC

TC

AEFO

CUPE

OECTA

ETFO

OSSTF

NU

ELHT = Employee Life & Health Trust

6 ELHT

Administration of benefit plans

UnionsTrustee Associations

CrownELHT Service Provider

2014-17 Collective Agreements

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Benefits Overview

• Life Insurance • Accidental Death &

Dismemberment (AD&D)

• Dental • Extended health

(chiropractic, massage therapy, etc.)

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II. Employee Life and Health Trusts

Six Employee Life & Health Trusts (ELHTs)

Shared Services Office (OTIP*)

* CUPE and Non-Union Trust have not yet decided on their shared services provider

ETFO ELHT (56,000 staff)

ETFO EWs* (2,000 FTE)

OSSTF ELHT (29,000 staff)

OSSTF EWs* (12,000 FTE)

AEFO ELHT (8,000 staff)

OECTA ELHT (36,000 staff)

CUPE ELHT (44,000 staff)

Principals, VPs and Non-Union

Staff (14,000 staff)

The following groups are still unconfirmed on which Trust they will join

EWAO (3,000 FTE)

Unions at No Table (1,000 FTE)

OCEW (6,000 FTE)

NOTES: All FTE Numbers are rounded and approximate EW = Education Workers

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Implementation – Central Coordinating Committee & Transition Committees

Transition Committees • 8 transition committees • Comprised of representatives

from the federations/unions, the trustee associations and the Ministry of Education to discuss implementation issues specific to each trust or employee group

Central Coordinating Committee • Identifies and addresses issues

common to all trusts • Comprised of representatives

from all 9 central bargaining tables and the PVP associations

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Employee Eligibility • The following employees are eligible to participate in the ELHTs:

Employees covered by the agreements on central terms and who were eligible for benefits in the 2012-2014 collective agreements

Principals and Vice Principals who are eligible for benefits as part of their Letter of Agreement

Other non-unionized employees who are currently eligible for benefits

Employees who retired from a school board prior to the school board’s transition to the ELHT

• Where benefits coverage is currently provided by school boards for daily occasional teachers, casual and/or temporary employees, these individuals are not eligible for transfer to the ELHTs.

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•

•

•

•

•

•

• •

ELHT Implementation

• Employees will be transitioned to the ELHTs on a staggered basis over the 2016-17 school year. Communication with all Wave 1 to 3 school boards should have taken place by the Ontario Teachers Insurance Plan (OTIP). It is anticipated that there will be 5 waves as follows:

Wave 1

Wave 2

Wave 3

Wave 4

Wave 5

Nov 1, 2016 Feb 1, 2017 Feb 1, 2017 Apr 1, 2017 Jun 1, 2017

14 Boards 27 Boards 12 Boards B o a r d s T B D

• OTIP is working closely with the school boards configuring the HRIS systems to ensure a smooth transition to each ELHT.

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IIA - Overview of Trust Agreements

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Trust Agreements • To formally establish the ELHTs, each trust requires a trust agreement. The

trust agreement is a legal arrangement, separate from the collective agreement, that outlines the terms and conditions for each ELHT.

• These agreements are currently being developed and negotiated with the federations.

• Once the trust agreements are signed, the trusts can be established and can receive funds. The first payment to the trusts are for the establishment of the claims fluctuation reserve (CFR) and will be flowed once the agreement has been signed.

• The trust agreement places accountability and reporting requirements on the trust, and will be the accountability mechanism for CFR payments.

Trust Agreements vs. Letters of Agreements • The trust agreements include the following key provisions which are distinct

from the letters of agreements which form part of the collective agreement:

Lette

rs o

f A

gree

men

ts

• Funding: o Ongoing employer funding contributions (school boards & Crown) o Start-up costs o Eligibility of employees

• Governance Structure • Negotiated as part of central collective bargaining under the School Boards Collective

Bargaining Act

Trus

t A

gree

men

t

• Scope to include other education sector employees into a trust through a participation agreement

• Dispute resolution procedures • Remuneration of the Trustees’ • Requirement for Trustees’ to:

o Develop funding and investment policies including generating additional funds through employee contributions;

o Identifying efficiencies that can be achieved in the administration and investment of the ELHT;

o Design benefits plans; and o Provide the bargaining parties with audited financial statements;

• Can be amended as required by bargaining parties

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Trust Governance • Under the Income Tax Act, ELHTs cannot be controlled by the employer. As such,

the trusts will not be consolidated in the government’s public accounts.

• The ELHTs will operate under a joint governance structure with a board of trustees comprised of 9 voting members (as determined by the letter of agreements):

– 5 employee appointed, including 1 independent expert, – 4 employer appointed, including 1 independent expert.

Note: The non-union trust will include 4 independent members (2 appointed by the employee representatives and 2 appointed by the employer representatives)

Employer Representatives Employee Representatives

1 Crown Appointment

2 Trustee Association Appointments

2 Independent Experts

4 Teacher Federations/Union

Appointments

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IIB – Interim & Long-term Funding

Interim Funding Approach

• There will be no significant structural changes to the GSN funding formula in the short-term, as the majority of the benefits funding currently flowing to school boards will continue under the same methodology.

• The additional Crown funding commitments for benefits, negotiated in the current agreements, will be flowed to school boards in the Fall following amendments to the regulations for the current school year.

• The Ministry has also already provided automatic adjustments to benefits funding through the salary benchmark increases provided in the 2016-17 school year.

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Interim Funding Approach - Active Employees

• Benefits data/FTE costing templates were sent out to each school board for completion. The Ministry, bargaining/employee groups, OTIP and others are in the process of reviewing and validating the data to determine:

1. Costs per FTE that school boards will be providing to the Trusts and 2. Amount of the start-up costs and claims fluctuation reserve contributions(Crown

commitment).

• The Trusts’ ongoing funding is based on one of two methods negotiated as part of the agreements on central terms (details on next slide).

• Wave 1 Funding Plan: – First payments to the Trusts’ are due November 1, 2016. School boards should

know the amount of the payment by October 1, 2016. – Ministry to provide the school boards with a breakdown of the contribution by

month. – Benefits data available as of September 15, 2016 will be used to determine initial

payments.

______________________________________________________________________________________________

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Interim Funding Approach – Method 1& 2

• Funding is based on the 2014-15 actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.).

Bargaining Group Funding Terms of ELHT

AEFO / OSSTF / OECTA CUPE / EWAO / OCEW PVP / Non-union

2014-15 actual benefits costs plus model

ETFO / ETFO-EW Fixed cost per FTE model locked into 2019-20

OSSTF-EW Fixed cost per FTE model locked into 2018-19

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Interim Funding Approach – Other Individuals

• Retirees: – Will transition to the trusts later in 2017 (as part of waves 4 and/or 5) – The retirees include:

• those who retired before August 31, 2013 and may be subsidized by the school board,

• those who retired after August 31, 2013 and up to the transfer date to the trust and should no longer subsidized.

• Daily Occasional Teachers/Casual/Temporary Staff: – These individuals are not eligible for transfer to the ELHTs. – The affected school boards will work with the transition committees to find a

similar plan that is cost neutral to the school boards.

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Long-term Funding Approach

• In the long-term, the ministry will investigate and consider revisions to how benefits are funded through the GSN in light of the new provincial benefits trusts.

• The ministry has also committed to establishing a working group with trustee associations to ensure that any implementation issues for the new provincial benefit trusts are reviewed in an open and transparent manner.

– School boards will be offered the opportunity to make a presentation to this working group in order to discuss long term funding strategies to the trusts.

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III. Retirement Gratuity Early Payout Option

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Retirement Gratuity Early Payout Option

• Memorandum 2016:SB01 issued in January provided information on the early payout of retirement gratuities.

• Ministry funding is dependent on whether the amount calculated for the early payout option exceeds the amount of the retirement gratuity liability a board has funded since September 2012.

• Given the percentage of take-up for the early payout option, most boards will have funded enough to provide for the payout.

• Although the timing of the payout differs between unions groups (Teachers and some Education workers were paid by August 31, 2016 and CUPE and EWAO were paid in 2016-17), the one-time accounting gain/loss associated with the payout for all members will be reported in the 2015-16 Financial Statements.

Retirement Gratuity Early Payout Option (cont’d)

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• The amount to be paid out to CUPE and EWAO members would re-classed to an accounts payable in the 2015-16 Financial Statements.

• The gain / loss incurred as a result of the one-time payout will be reported outside of compliance and will adjust the unfunded liability reported below line 3 on Schedule 5.

• As a result, the amount of the unfunded liability that a board reports within compliance in the future years will also be adjusted.

• The one-time payout does not change a board’s EARSL used to report the remaining unfunded balance in compliance.

Retirement Gratuity Early Payout Option (cont’d)

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• Example – without Ministry funding but with a gain reported:

PSAB Retirement Gratuity Liability – September 1, 2012 $120M Unfunded retirement Gratuity liability – September 1, 2012 $120M

PSAB Retirement Gratuity Liability before payout – August 31, 2016 $100M (B) Unfunded Retirement Gratuity before payout – August 31, 2016 $ 80M (A)

Cash payout of early retirement gratuity option – August 31, 2016 $ 10M (C) Board’s funded portion of retirement gratuity – August 31, 2016 $ 20M (D) = (B-A) One-time Ministry appropriation for retirement gratuity payout $ - M (E) = (C-D)

One-time gain on early payout of retirement gratuity liability $ 3M (F)

PSAB Retirement gratuity liability after payout $ 87M (B-C-F) Remaining Unfunded retirement gratuity after payout $ 77M (G) = (A-E-F)

As of 2016-17 Annual reduction to GSN funding ($3M/8 years) $0.4M Annual phase-in amount of unfunded liability ($77M/8 years) $9.6M

$10.0M

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IV. Labour Data

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School Board Collective Bargaining Act (SBCBA)

• The current collective agreements under the SBCBA expires August 31, 2017.

• Under the SBCBA, central bargaining can commence upon notice to bargain, which can be as early as 90 days before the expiry of the collective agreement (i.e. June 2017).

• The minister, through regulation, can extend the time period for an additional 90 days (i.e. March 2017).

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Labour Data Request Purpose

• The ministry is working with the trustee associations to collect data in preparation for the second round of central collective bargaining. – School boards are the employer and the only ones that have this

information. • Capturing data by bargaining unit or union/employee group. • Collecting information in advance of bargaining should avoid last minute/ad

hoc requests.

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Requested Data

• School boards should have received a memo and excel file from their respective trustee associations asking for the following data relating to:

– FTE – Leave of absences – sick leave, paid leaves – Hiring practices (Reg. 274) – Work hours/schedules – Job security (for education workers) – Scheduled Unpaid Leave Plan (for education workers) and Earned Leave

(OECTA and AEFO only) – FTE pilot project status (OECTA only) – Return from PVP to teacher (OECTA and AEFO only)

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Do’s and Don'ts of Filling Out the Form

Do • Read the instructions • Look at the dates – is it data for the school year or a specific date?

Don’t • Modify the worksheet, including do not add or remove lines • Use numerals when required. Alphabetic characters, they do not add

up (there is a comment section or ask questions)

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Process – Next Steps

• Questions can be sent to the trustee associations – contact information is in the memo that is accompanying the excel sheet.

• Files are to be completed and returned by October 14, 2016.

• Send completed files electronically to the following email box: benefits@ontario.ca.

Thank You!

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