Instructions on Completing the 2012 Financial Statements Submission

Instructions on Completing the 2012 Financial Statements Submission Overall Purpose The financial statements submission will identify the level of services provided and associated expenditures and revenues incurred by the Consolidated Municipal Service Managers (CMSMs) and District Social Service Administration Boards (DSSABs) for the fiscal year of January to December 2012. New in This Cycle (from 2012 Revised Estimates submission) Schedule 1.2 Eliminated data element, A664, number of children served, regular from Other Service Targets as this is not part of the July 2012 Ontario Child Care Service Management Guidelines - Business Practice Guidelines Schedule 2.6 Added an Other section to this schedule Schedule 2.7 Eliminated the Adjustments column of this schedule Schedule 3.1 Numbers from page 2 for section 2B are now reflected on page 1 Schedule 3.1 Line 3.6.1 added for committed capital at December 31, 2012 being carried forward to 2013 Schedule 4.2 added Summary of 2012 Administration Expenditures Schedule 5.1 added Capital Carry Forward to accommodate the release of ELCC2 Child Care Capital Retrofit Funding Update Reminder Please ensure you have selected 2012-13 as the school year in order to generate your submission for the 2012 calendar year. File Naming Convention The Ministry has established a specific naming convention for each submission type for each CMSM and DSSAB. It is a combination of a unique number identifier associated with the CMSM / DSSAB, the cycle type, the year, and an abbreviation of the organization name all separated by an underscore. An example is provided below for the Regional Municipality of York: 296_FIN_1213_ Regional Municipal York For the 3 submission cycles, you will use the following 3 letters in your submission names: EST = Estimates REV = Revised Estimates FIN = Financial Statements Please use the file names provided in the naming convention file when creating your submissions. It is posted on the Financial Analysis & Accountability Branch website located here: http://faab.edu.gov.on.ca/. Select Child Care on the bottom right of the webpage. Instructions for Completing 2012 Financial Statements Page 1

Components of the Financial Statements Submission The financial statements submission is comprised of a title page, a table of contents and various schedules broken down into five categories as follows: 1. Service Data Schedules 2. Expenditure Schedules 3. Revenue Schedules 4. Supplementary Schedules 5. Accompanying Schedules Suggested Order of Entry It is recommended to complete the submission in the order in which it appears within the EFIS web application (certificate, schedule 1, schedule 2, schedule 3, schedule 4, schedule 5 and the explanation report). Steps for Completion Following these 18 steps will allow you to complete your financial statements submission. The steps are colour coded to allow the user to easily identify the five different schedules (in addition to the cover page) within the EFIS submission. STEP # 1 Completion of Certificate (Cover Page) The cover page serves to identify the organization. It includes the submission type, the formal CMSM/DSSAB name, the applicable fiscal year as well as three data entry fields for date, signature and title. In EFIS, under Sections, select Certificate. Enter information in the date and title field. The date should be entered as Month, Day, Year. The date should be entered as the date that will reflect the actual submission date. If that date is not known it can be left blank and input once the CMSM/DSSAB determines the date of submission. The hard-copy of the cover page should include 2 signatures of those who have signing authority for the CMSM/DSSAB. Alternatively, a corporate seal can be affixed to the cover page. STEP # 2 Completion of Schedule 1.1 (Contractual Service Targets) Schedule 1.1 captures the contractual service targets over 2 pages. These service targets are called contractual as they are tied to the contract. The definitions of these service targets can be found in the Ontario Child Care Service Management Guidelines, July 2012, Appendix C, Data Elements and Definitions. Instructions for Completing 2012 Financial Statements Page 2

The schedule comprises four sections: 1) Service contract (page 1) 2) Actuals for the year (page 2) 3) Reconciliation between the Service Contract and Actuals for the year (page 2) 4) Explanation Reporting (page 2) This schedule will automatically calculate any funding adjustments resulting from a CMSM or DSSAB that did not meet their contractual service targets pursuant to Section 2 of the service contract. In EFIS, under Sections, select Schedule 1.1 Schedule of Contractual Service Targets. This schedule contains 2 pages. The CMSMs and DSSABs are required to report their actual service levels for each detail code listed under the five contractual service targets, where applicable. Page 1 Per the Service Contract There is no data entry required on the page. This is the same information that you have seen in the estimates and revised estimates submission. It is simply included here in order to allow for automatic explanation reporting where there is a variance of 10% or greater from the service targets identified in the service contract. Page 2 Actuals for the Year On this section of the page, you are required to enter the actual level of service that has been provided by the CMSM or DSSAB from January 1 st to December 31 st inclusively. Page 2 Reconciliation between Service Contract & Actuals for the Year On this section of the page, the percentage of targets achieved as well as any funding adjustments resulting from a CMSM or DSSAB not meeting their contractual service targets pursuant to Section 2 of the service contract will be illustrated. Page 2 - Explanation Reporting There is no data entry required for this section. It is found in column 10. When an asterisk * appears it identifies where the CMSM or DSSAB must provide an explanation for the variance between the actuals and the service contract. HINT: The service levels included in this schedule should be reflective of the level of funding received by the Ministry of Education ONLY. If the CMSM/DSSAB is providing services with funds over the required cost sharing provisions, they should not be included on this schedule. STEP # 3 Completion of Schedule 1.2 (Other Service Targets) Schedule 1.2 captures additional service targets, beyond those tied to the service contract, that have been assigned to each service (Ministry detail code) over 2 pages. The definitions of these service targets can be found in the Ontario Child Care Service Management Guidelines, July 2012, Appendix C, Data Elements and Definitions. NOTE: Where the actual results vary by 10% or more from the 2011 target levels, the Ministry of Education may follow up with the CMSM/DSSAB and an explanation may be required. These service targets are included in the financial submissions to provide a more comprehensive overview of child Instructions for Completing 2012 Financial Statements Page 3

care service levels. In EFIS, under Sections, select Schedule 1.2 Schedule of Other Service Targets. For each service that was provided by the CMSM or DSSAB, enter the requested service target information on page 1. After all the information has been completed for page 1, proceed to completing the requested service target information on page 2, as applicable. NOTE: Targets are required to be entered as follows: # = no decimal places average monthly # = 1 decimal place $ = no decimal places, and FTE = 2 decimal places HINT: The service levels included in this schedule should be reflective of the level of funding received by the Ministry of Education ONLY. If the CMSM/DSSAB is providing services with funds over the required cost sharing provisions, they should not be included on this schedule. STEP # 4 Completion of Schedule 2.1 (Staffing Direct Delivery of Service) Schedule 2.1 captures information on the number, full-time equivalency (FTE), salaries and benefits of individuals performing duties under various detail codes. These individuals MUST BE employees of the CMSM/DSSAB as this schedule only captures staffing under a direct delivery of service model. Include all staffing expenditures even if funded from other sources and not fully subsidized by the ministry. This schedule is comprised of 4 pages: 1. Page 1 = detail codes A371 and A430 2. Page 2 = detail codes A429 and A663 3. Page 3 = detail codes A661 and A376 4. Page 4 = detail codes A665 and A400 In EFIS, under Sections, select Schedule 2.1 Staffing Schedule Direct Delivery of Service. For each of the services directly provided by the CMSM or DSSAB, complete columns 1 through 7 as applicable on pages 1 to 4. HINT: In deciding if the staffing should be reported on this schedule or schedule 2.2, ask the following question: Would the position still exist if the direct delivery child care or SNR program closed? If the position would continue to exist, report the position on schedule 2.2, otherwise report them on 2.1. Schedule 2.1 specifically excludes individuals who determine income eligibility. Under column 1, enter the position title of the individuals. Under columns 2 and 5, enter the number of individuals. A whole number is required to designate an individual whether he or she is full-time or part-time. Under columns 3 and 6, enter the full-time equivalency of individuals. Full-time equivalency is Instructions for Completing 2012 Financial Statements Page 4

calculated as the number of hours worked during the year / 1820 hours (35 hrs. per week * 52 weeks). Under columns 4 and 7, enter the salary costs of the individuals. Salaries include the following: payments to all full-time, part-time, temporary, occasional, summer or other employees. Included in this account line are premium pay, overtime pay, vacation pay, and other direct monetary compensation paid to employees. Ensure that you have not included benefits in this column, as they are to be reported strictly on lines 1.21 in the aggregate. Under columns 4 and 7 at line 1.21 enter the benefit costs for the individuals reported in that column. This account line includes mandatory benefits (i.e. CPP, EI, and EHT), benefit plan costs (i.e. ADD, LTD, extended health, dental) as well as other benefits (i.e. WSIB). HINT: Where 1 person is being allocated to different detail codes, ensure that the calculated annual salary is the same for each detail code. For example, consider a person who has.25 of his time charged to A371 and.75 of his time charged to A376. If the person makes $100,000 per year, we would expect to see $25,000 charged to A371 ($100,000 * 25%) and $75,000 charged to A376 ($100,000 *75%). We see a consistent annual salary of $100,000 for this person in each detail code if taking salaries / FTE: $25,000 / 25% = $100,000 $75,000 / 75% = $100,000 STEP # 5 Completion of Schedule 2.2 (Staffing Program Administration) Schedule 2.2 captures information on the number, full-time equivalency (FTE), salaries and benefits of individuals who support the administration of the programs. Any administration costs that can logically be assigned to a program are considered program administration costs (i.e. if a program ceased to operate then the administration function would no longer be necessary to the organization). Include all staffing expenditures even if funded from other sources and not fully subsidized by the ministry. This schedule is the schedule whereby CMSMs and DSSABs should include staffing charge backs from central departments, for example, IT, HR, Finance, etc. Where possible, you should attempt to get the number of staff and FTE for these charge back costs. This schedule is comprised of 2 pages: 1. Page 1 = detail codes A380 and A425 2. Page 2 = blended detail code A661 and A664 In EFIS, under Sections, select Schedule 2.2 Staffing Schedule Program Administration. Please follow the same steps as those identified in step # 4 above to report the number, FTE, salary and benefit costs. HINT: In deciding if the staffing should be reported on this schedule or schedule 2.2, ask the following question: Would the position still exist if the direct delivery child care or SNR program closed? If the position would continue to exist, report the position on schedule 2.2, otherwise report them on 2.1. Individuals who determine income eligibility should be included on Schedule 2.2. Instructions for Completing 2012 Financial Statements Page 5

HINT: Where 1 person is being allocated to different detail codes, ensure that the calculated salary is the same for each detail code. For example, consider a person who has 0.30 of her time charged to A380, 0.10 of her time to A425 and 0.60 of her time charged to A661. If the person makes $65,000 per year, we would expect to see $19,500 charged to A380 ($65,000 * 30%), $6,500 charged to A425 ($65,000 * 10%) and $39,000 charged to A661 ($65,000 * 60%). We see a consistent annual salary of $65,000 for this person in each detail code if taking salaries / FTE: $19,500 / 30% = $65,000 $ 6,500 / 10% = $65,000 $39,000 / 60% = $65,000 STEP # 6 Completion of Schedule 2.3 (Gross Expenditures) Schedule 2.3 captures information on gross expenditures for child care programs. Gross expenditures are defined as total expenditures, by listed detail code, without consideration of Ministry funding, municipal contributions or other offsetting revenues. This schedule comprises 11 expenditure categories reported over 2 pages. In EFIS, under Sections, select Schedule 2.3 Schedule of Total Gross Expenditures. It is not necessary to report staffing costs on this schedule as salaries and benefits will automatically carry-forward from schedule 2.1 and schedule 2.2. Enter expenditures in each of the cells giving consideration to the definitions in the Ontario Child Care Service Management Guidelines, July 2012, Appendix C, Data Elements and Definitions. Include all expenditures even if funded from other sources and not fully subsidized by the ministry. On these pages, you are required to enter the actual expenditures incurred by the CMSM or DSSAB from January 1 st to December 31 st inclusively. HINT: For all detail codes, except A380 and A425, Columns 2 to 4 and 6 to 10 should only be used to report expenditures where the CMSM or DSSAB provides a directly delivered service. If the CMSM or DSSAB is purchasing a service from another organization (reported under column 5), they should not be reporting any costs under the other columns. Col 2. Advertising and Promotion Costs incurred by the CMSM/DSSAB for any promotion and publicity and dissemination of information. Included in this expenditure category are: Promotional pamphlets, posters, pictures, advertisements, radio and TV announcements, TV or radio scripts, and annual reports. Packaging and mailing for promotional purposes, costs of membership drives. Agency annual meetings, including refreshments, fees paid for a speaker, travel expenses of a speaker, printing and mailing of invitations, and advertising of the meeting. Agency educational and promotional events and all other promotional and publicity costs Instructions for Completing 2012 Financial Statements Page 6

Nominal awards given to staff members or volunteers, awards for outstanding distinction in the field in which the agency works. Col 3. Building Accommodation All costs related to the building space or facilities occupied by the CMSM/DSSAB and the surrounding grounds. Included in this expenditure category are: Costs related to owned properties. Rental of space used by the agency in rendering service to its clients including administrative buildings, offices and garage facilities: (if this rental includes the cost of heat, water, light, property taxes, and other related costs, the entire sum is reported). The cost of any of the following, unless the cost of one or more of them is included in the rent: heating, fuel, water, gas, or electricity. Building repairs and the cost of materials for such repairs, the cost of maintaining fences and roads on the property and repair or maintenance of furnaces and boilers. Janitor supplies, such as soaps, detergents, disinfectants, and supplies for washrooms such as paper towels, toilet paper, soap, light bulbs, etc. The cost of window washing, gardening, removing waste, garbage, rubbish - and contracts for cleaning or building maintenance. Building equipment and fixtures purchased not exceeding $1,000 per item (the cost of an item or any components making up the whole item not exceeding $1,000 in a fiscal year) Dry cleaning and laundering of draperies, rugs, furniture, as well as employee protective clothing. Repair or maintenance of furniture Repair or maintenance of building equipment such as lawn mowers and small equipment used maintaining the building and grounds. All insurance costs for premises, furnishings and equipment (excludes Directors and Officers Liability and Professional Malpractice Insurance which is reported in Miscellaneous and auto insurance for agency owned and leased vehicles which is reported in travel). Col 4. Program Supplies, Equipment & Furnishings All costs incurred by the CMSM/DSSAB for the delivery of programs direct to clients. Included in this expenditure category are: Program supplies used by staff to carry out programs (i.e. play therapy supplies, testing supplies, equipment to be used in hearing or speech work, where the expenses are not particular to an individual client, but rather for a group of clients The cost of maintenance and repairs of program equipment and furnishings. NOTE: Program supplies do not include items that become the personal property of a client Col 5. Purchase of Service Costs incurred by the CMSM/DSSAB through a purchase of service agreement with an agency where that agency provides the service. HINT: This expenditure category was previously generally reported under other Line B on the MCYS budget submission. Col 6. Travel Travel costs incurred by volunteers and staff. This expenditure category would include allowances per kilometer for use of personal automobiles; bus, train, taxi or air travel costs; parking fees; costs of repairing and maintaining agency leased or owned vehicles; auto insurance paid by the agency; and Instructions for Completing 2012 Financial Statements Page 7

other travel related incidental costs including meals, accommodation, etc. Travel costs related to training and conferences are also included. Col 7. Office Costs incurred by the CMSM/DSSAB in its general administrative operation. Included in this expenditure category are: Postage and stationery (excluding amounts used in a promotional campaign, which should be reported under account under Advertising and Promotion). Telephone service costs. The cost of telegrams, courier service, transmission of computerized data telexes, and other communication costs. Office equipment and furnishings purchases not exceeding $1,000 (of an item or any component making up the whole item not exceeding $1,000 in a fiscal year). The purchase price of typewriters, dictating machines, calculators, computers and components, communication systems or equipment, office desks and other office furniture, etc. whether as additions or replacements not exceeding $1,000. The cost of cleaning and repairing dictating machines, calculators, computers and components, communication systems or equipment, office desks and furniture, etc., or cost of contracts for such maintenance. Col 8. Staff Training All costs incurred by the CMSM/DSSAB in the recruitment and education of volunteers, board members and staff. This expenditure category would include training and conference registration expenses, the cost of reference books and periodicals supplied by the agency, other training education and conference expenses incurred by the agency including training and library equipment and all costs related to the recruitment of staff and volunteers (including advertising). Col 9. Purchased Professional Services - Client Costs incurred by a CMSM/DSSAB in purchasing professional services for clients. Included in this expenditure category is: Legal and related worker fees for services rendered to clients. Any other client related purchased service (i.e. consultation costs, interpretation and translation costs, psychological assessment and consultation costs, fees for physical or occupational therapy, speech pathology, audiology, dietetic or play therapy services, tutoring costs, additional nonmedical service provided to a client, any other client related purchased professional service expense) HINTS: 1) Non-Case/client-related professional services are reported in Purchase of Service - Non client. 2) Purchase professional services (client) should only be used for a purchase of service from an organization that is not your own. Col 10. Purchased Professional Services - Non Client Costs incurred by an agency in purchasing non-client related professional services for which the agency itself does not employ staff. Included in this expenditure category are: Fees paid for administrative or corporate legal work and court costs etc.; auditing the CMSM/DSSAB books including fees paid to data centres for bookkeeping services; financial administrative program and information systems as well as other management advisory services provided by management consultants. The costs of other professional services purchased by the CMSM/DSSAB on a fee-for-service basis (i.e. bank payroll services, architectural and engineering fees, medical and related Instructions for Completing 2012 Financial Statements Page 8

consultant fees non-case/client-related assignments, fees paid to organizations for temporary clerical help and other contract services purchased) HINTS: 1) Salaries for regular bookkeeping services should be reported in account Salaries and Wages if the bookkeeper is an employee of the CMSM/DSSAB. Services for building maintenance and repairs, or other building upkeep, such as housekeeping should be charged to Building Accommodations. Services related to public relations should be charged to Advertising and Promotion. 2) Purchase professional services (non-client) should only be used for a purchase of service from an organization that is not your own. Col 11. Miscellaneous This column is for all other CMSM and DSSAB expenditures that do not fit under any other expenditure category. This category includes: Dues or fees to international, national, provincial, or other affiliated organizations as well as dues paid by the CMSM/DSSAB to other service organizations. Insurance coverage that cannot be placed in another classification, e.g. malpractice insurance. Costs related to TWOMO; and System need costs for detail code A661. STEP # 7 Completion of Schedule 2.4 (Adjusted Gross Expenditures) Schedule 2.4 captures information on revenue streams that offset the reported gross expenditures on schedule 2.3 to bring the expenditures to an adjusted gross expenditure basis. Do not include the legislated provincial/municipal cost sharing portion or 100% municipal contributions in excess thereof. Include all revenue amounts if the revenue is being used to offset Ministry funded child care program costs. You should also include any 2011 operator recoveries on this schedule in column 4. In EFIS, under Sections, select Schedule 2.4 Schedule of Adjusted Gross Expenditures. Page 1 Estimates Submission There is no data entry required on this page. This information comes from the estimates submission file. It is simply included here in order to allow for automatic variance (explanation) reporting in accordance with Section 1.4.4 of the July 2012 Ontario Child Care Service Management Guidelines Business Practices Guidelines which states the following: If the year s total adjusted gross expenditure is $100,000 or greater, a variance report is required if the financial or revenue data is $10,000 or more over or under the target. Page 2 Actuals for the year On this page, you are required to enter the actual adjustments to gross expenditures for parent contributions and other offsetting revenues that the CMSM or DSSAB has received from January 1 st to December 31 st inclusively. Complete page 2 with the following guidance: Instructions for Completing 2012 Financial Statements Page 9

In Column 2, enter the required parental contribution for subsidized child care spaces where the parents are required to pay, through income testing, a portion of the cost (i.e. Space is not 100% subsidized by the Ministry). The completion of this column does not negatively impact the CMSM or DSSAB funding in any manner. By example, in the prior year the CMSM / DSSAB reported $6,000 for a child under detail code A371 for gross expenditures. This child was in receipt of subsidy for $6,000 for subsidy and the parent contributed $3,200 based on the income test. Starting in 2011, we are asking CMSMs and DSSABs to report the total cost of $9,200 (total cost for that child) and then report offsetting revenue in column 2 of $3,200 which brings us down to a net cost of $6,000 which is the same that was reported in prior years. HINT: This column should never be blank unless the CMSM or DSSAB only serves fully subsidized children. In Column 3, enter the parental contribution for children who are accessing the service but where the parents are paying for the cost of the space (i.e. Space is not subsidized) In Column 4, enter all other offsetting revenues, where applicable. HINT: Do not include the legislated provincial/ municipal cost sharing portion or contributions in excess thereof. This column should be used to report revenues from sources outside the CMSM or DSSAB. In Column called Note 1, an asterisk will appear where explanation reporting is required. STEP # 8 Completion of Schedule 2.5 (Transition Capital) Schedule 2.5 captures information on minor capital activities that were undertaken during the course of the year and were funded from the capital transition funding allocation for licensed child care centres. This schedule is broken down into 4 pages. The first 2 pages are to report actual expenditures incurred during the 2012 fiscal year. Pages 3 and 4 are to report committed amounts as of December 31, 2012 on capital expenditures that will be incurred in the 2013 fiscal year. In EFIS, under Sections, select Schedule 2.5 Transition Capital. There are 40 rows provided to allow you to report your expenditures across 40 different centres. Where you expended these funds over more than 40 centres, please identify the first 39 centres and on row 40, identify the balance as various. The Ministry may follow-up with you to get a further breakdown of this various category. First Page The first page comprises of 5 columns: Instructions for Completing 2012 Financial Statements Page 10

In Columns 1 to 3, enter the name and related address of the centre. In Columns 4 and 5, enter the capacity of the centre pre and post expenditure spending. By capacity we mean licensed capacity. Second Page The second page also comprises of 5 columns: Column 1 is automatically populated based on column 1 of the first page. In Columns 2, 3 and 4, enter the amounts that were spent by approved expenditure category. These expenditure categories are defined as follows: Col 2. Retrofit Interior Expenditures incurred by non-profit licensed child care centres that received funding for minor renovations of the interior to transition to serve younger aged children as 4 and 5 year olds enter the Full-Day Learning Kindergarten Program. Col. 3 Retrofit Playground Expenditures incurred by non-profit licensed child care centres that received funding for minor renovations of the playground to transition to serve younger aged children as 4 and 5 year olds enter the Full-Day Learning Kindergarten Program. Col. 4 Retrofit - Other Expenditures incurred by non-profit licensed child care centres that received funding for minor renovations for retro-fit projects other than interior or playground retro-fits to transition to serve younger aged children as 4 and 5 year olds enter the Full-Day Learning Kindergarten program. Column 5 represents the total amount of actual spending by centre and overall. HINT: The total in Column 5 reflected on Schedule 2.5, page 2 will automatically link to Schedule 2.3, row A713, column 5, purchase of service as the actual expenditure incurred. Third Page This page is similar to the first page except in Column 5 please enter the projected capacity after the committed expenditure. Fourth Page This page is similar to the second page except in Columns 2, 3, & 4, please enter the committed amount of the expenditure by category as outlined above. Column 5 represents the total committed amount of spending by centre and overall as of December 31, 2012. HINT: The total in Column 5 entered into Schedule 2.5, page 4 must equal the total as entered on Schedule 5.1, line 1.4 as the amount of capital committed as of December 31, 2012 and being carried forward to 2013. You will not be able to promote your submission to ACTIVE status if these two amounts do not equal. Instructions for Completing 2012 Financial Statements Page 11

STEP # 9 Completion of Schedule 2.6 (System Needs Operating ELCD) Schedule 2.6 captures the actual 2012 system needs expenditures. These expenditures are defined as costs incurred through the use of detail code A661 funds to support spaces created under Best Start as explained in the Section 1.5.2 of the July 2012 Ontario Child Care Service Management Guidelines Business Practices Guidelines. Expenditures may include training of staff, quality initiatives, addressing accessibility in rural and northern areas through transportation and/or other miscellaneous expenditures. The level of expenditure on system needs in 2012 cannot exceed the amount approved by MCYS in 2010. In EFIS, under Sections, select Schedule 2.6 Schedule of System Needs. This schedule is divided into 4 sections: 1. Staff Training 2. Quality Initiatives 3. Transportation Northern & Rural 4. Other Please provide a detailed description of each type of expense and the related amount for each. Complete each section that is applicable to the projects that were undertaken to support system needs. For Number of Participants under Staff Training, please include the number of providers that attended the workshop. For Number of Participants under Transportation, please include the number of children that received this service round trip. HINT: The total costs reported on Schedule 2.6 will automatically link to Schedule 2.3, row A661 column 11, miscellaneous. STEP # 10 Completion of Schedule 2.7 (TWOMO Expenditures) Schedule 2.7 captures the support costs provided to territories without municipal organization (TWOMO). TWOMO only applies to DSSABs without municipal organization, which is a territory outside the geographical area of any municipality or First Nation. This schedule is not applicable to CMSMs. In EFIS, under Sections, select Schedule 2.7 - TWOMO Expenditures and complete Stages 1-4 Stage 1: The municipal levy is calculated based on: o The total approved DSSAB budget o Less other sources of revenue (provincial, federal and other funding) Stage 2: The TWOMO share of the municipal levy is determined using the municipal Instructions for Completing 2012 Financial Statements Page 12

attribution or share percentage Stage 3: Non EDU related allocations are subtracted from the municipal levy to find the total EDU child care program allocation Stage 4: The percentage of municipal levy that the child care program allocation represents is used to calculate the MEDU portion of the TWOMO levy. DSSABs will be requested to submit along with their Financial Statements submission a copy of the following: Approved DSSAB budget; and Levy Apportionment details. The total costs reported on Schedule 2.7 will automatically link to Schedule 2.3, row A384, column 11, miscellaneous. Note: In some cases the DSSABs calculation of TWOMO may differ from the template presented. DSSABs are asked to try and use the Ministry template but if problems exist please contact your Financial Analyst. HINT: TWOMO costs should only include the share of costs funded by the Ministry of Education. For those detail codes funded by MCYS, the costs should not be reported in the budget submission but reported separately to MCYS. STEP # 11 Completion of Schedule 2.8 (Capacity Funding to Support Transformation) This schedule captures the costs associated with supporting viability and facilitating child care transformation within communities funded through the Capacity Funding to Support Transformation allocation. In EFIS, under Sections, select Schedule 2.8 Capacity Funding to Support Transformation. The schedule is broken down into the following 5 project types: 1. Merger within the Community 2. Merger into a School 3. Relocation to a School 4. Relocation within the Community 5. Unrelated to Mergers or Relocations In EFIS, under Sections, select Schedule 2.8 Capacity Funding to Support Transformation. In Columns 2, 3 and 4, enter the number of mergers, centres and operators supported through the allocation. NOTE: The form intentionally duplicates the number of centres and operators where a centre receives funding support for the various expenditure categories. For example, if a centre will receive both technology upgrade and toys and equipment support, the form will count that one centre as 2 centres. Instructions for Completing 2012 Financial Statements Page 13

In Column 5, enter the costs projected to be incurred to support operators, centres and agencies that will be involved in business transformation activities and/or require business transformation supports. You must ensure that the eligible expenditures as well as maximum expenditure amounts are respected as set out in the Child Care Business Practices Guidelines. An extract has been provided here for your reference. Eligible Expenditures (as per the Child Care Business Practices Guidelines): Category 1: Merger of Two or More Operators Up to $6,500 per merger to support legal costs for two or more operators that are merging. Category 2: Relocation of an Operator and/or Merger of Two or More Operators Lease Costs (e.g., to cover the expense of terminating a lease); and/or, Moving Costs. Category 3: Business Transformation Supports Up to $3,000 per centre or PHDC agency to support business planning costs; Up to $1,000 per centre or PHDC agency to support technology update costs for business purposes; and/or Toys and equipment. The following definitions are provided for your guidance: Centre: The premises covered by one day nursery license. Merger: The combining of two or more entities into one, through a purchase acquisition or a pooling of interests Operator: A person, municipality or other incorporated entity that has control or management of a day nursery or a private-home day care agency. An operator may hold more than one license. STEP # 12 Completion of Schedule 3.1 (Entitlement Calculation) Schedule 3.1 captures the funding entitlement of the CMSM or DSSAB. It takes into consideration the level of expenditure, the financial flexibility policy as well as the actual service target levels. This schedule is comprised of 2 pages. The first page calculates the detailed funding entitlement by flexibility category except for category 2B. The second page calculates the detailed funding entitlement for flexibility category 2B as well as includes a section noted as For Ministry use only. This section summarizes the operating and capital funding entitlements to the CMSM or DSSAB for monthly payment purposes. It also has cells open should adjustments be required to the monthly payment amounts. In EFIS, under Sections, select Schedule 3.1 Schedule of Funding Entitlement. There is no data entry required on this schedule as all the required data comes from other schedules in the submission. NOTE: Previously CMSMs and DSSABs would have realigned funds in order to reflect the requested Instructions for Completing 2012 Financial Statements Page 14

flexibility. This exercise has been completely automated within this schedule. 2012 In-Year Child Care Investment- Financial Flexibility Funding may be moved from the new A661 (Transition Operating) into A663/A664 (Extended Day Child Care Fee Subsidy), A713 (Child Care Transition Capital), A375 (Repairs and Maintenance) and the new A412 (Capacity Funding to Support Transformation). Funding may be realigned between the new Repairs and Maintenance (A375), Capacity Funding to Support Transformation (A412) and the existing and new Child Care Transition Capital (A713). Child Care Transition Capital (A713), Capacity Funding to Support Transformation (A412) and Repairs and Maintenance (A375) may not be moved into A661. HINT: All pages of schedule 3.1 must be printed off from the active EFIS submission, signed by CMSMs and DSSABs on the bottom of page 1 and sent to the Ministry of Education. STEP # 13 Completion of Schedule 4.1 (Purchase of Service Supported / Notional Staffing) Schedule 4.1 captures staffing information on those activities that are not directly delivered by the CMSM or DSSAB (staffing information for those costs reported under Column 5 of Schedule 2.3). In EFIS, under Sections, select Schedule 4.1 Schedule of Purchase of Service Supported / Notional Staffing. It is separated into 2 sections: 1) Detail codes related to wage subsidy 2) Detail codes related to all other services Please see Appendix A for further details on the completion of this schedule in EFIS. STEP # 14 Completion of Schedule 4.2 (Summary of Administration Expenditures) Schedule 4.2 captures and summarizes the total 2012 administration expenditures in one schedule as reported in various other schedules throughout the EFIS package. In EFIS, under Sections, select Schedule 4.2 Summary of Administration Expenditures. There is no data entry required on this schedule as all the required data comes from other schedules in the submission. Please review the summary for accuracy. Instructions for Completing 2012 Financial Statements Page 15

STEP # 15 Completion of Schedule 4.3 (Total Number of Children Served) Schedule 4.3 captures the total number of children served. It includes the following children: 1. Those funded by the Ministry of Education through an 80/20 cost share 2. Those funded by the Ministry of Education through a 100% provincial share 3. Those funded by the CMSM/DSSAB over and above the required legislated cost sharing provision. The total number of children served is reported on one page. In EFIS, under Sections, select Schedule 4.3 Total Number of Children Served. For each age group, enter the total number of children served. In an attempt to capture the total unduplicated number of children served, report the children in the appropriate age category as of December 31, 2012. STEP # 16 Completion of Schedule 5.1 (Capital Carry Forward) Schedule 5.1 captures information regarding the expenditures of 2012 capital retrofit funding as well as committed 2012 capital funding being carried forward to 2013. In EFIS, under Sections, select Schedule 5.1 Capital Carry Forward Line 1.1-2012 available capital allocation is being automatically pulled from Schedule 3.1, line 3.7, column 4. Due to the flexibility options in 2012, a potentially larger amount than the capital retrofit funding allocation may be carried forward to 2013 if there are unspent funds in this limited flexibility category. Line 1.2 2012 capital expenditures incurred up to December 31 st, 2012 are being automatically pulled from Schedule 3.1, line 3.7, column 1. Again, due to the flexibility options in 2012, the amount of capital expenditures automatically being pulled may appear larger than your actual capital expenditures because the system needs to pull operating expenditures included in the codes with flexibility toward capital expenditures (i.e A661, A663/A664, A412, A375) to offset the 2012 available capital allocation reported at line 1.1. Line 1.3 calculates the maximum allowed amount available for carry forward into 2013. Enter the amount of capital committed as of December 31, 2012 to non-profit operators for transition minor capital projects at line 1.4. This is the amount of the 2012 capital allocation that is being carried forward to 2013. This amount must be spent by December 31, 2013. HINT: For reporting of data elements on Schedule 1.2, the CMSM or DSSAB would report the number of licensed programs funded for capital retrofits that relate to the 2012 allocation. This would include those projects that were committed as of December 31, 2012. Instructions for Completing 2012 Financial Statements Page 16

STEP # 17 Review of Submission The last 3 schedules in the financial statements have been created in order to automate some of the review procedures that are performed by financial analysts during the review process. By including them in the submission document set, you can see the analysis and correct any inconsistencies prior to submitting your financial statements. This will hopefully expedite the review process and reduce the number of queries that you receive. The schedules are as follows: 1. Data Analysis & Review 2. Error Messages 3. Warning Messages There is no data entry required in any of these schedules. You are requested to review the information and correct it where required as follows: 1. Data Analysis & Review, review the values reported for consistency of reporting between detail codes. 2. Error messages, follow-up on any item where ERROR is identified in the far right column in order to clear the message. 3. Warning messages, follow-up on any item where Warning is identified in the far right column in order to clear the message. HINT: You cannot promote your submission to active status if you have uncleared ERROR messages. STEP # 18 Create Explanation Report To provide CMSMs and DSSABs with the opportunity to provide explanations on significant variances in accordance with the Business Practices Guidelines Document, issued July 2012. This section will explain how to create your explanation report, how to complete it and how to submit it to the Ministry of Education. CREATING YOUR REPORT By following the next 7 steps, you will be able to create and save your explanation report. 1. Login to EFIS 2. Under EFIS access, select Grant Calculation System 3. Under submission, select Reports 4. Under Child Care, then Summary Reports, select the report called Explanation Report 5. In the drop down menu, select 2012-13 Child Care Financial Statements Instructions for Completing 2012 Financial Statements Page 17

6. Select your CMSM or DSSAB by clicking on the circle before your file name, then scroll over and select next 7. From the submissions shown, select your active submission by clicking on the circle before the file name, then scroll to the bottom of the table and click Run Report 8. When the message appears Do you want to open or save this file? save the file with an appropriate name and an appropriate location that is consistent with your file naming convention and safekeeping for electronic files. For example, 296_FIN_1213_ Regional Municipal York_Explanation Report HINT: You must have an ACTIVE submission created in order to create your explanation report COMPLETING YOUR REPORT Upon opening your explanation report, you will notice that it is divided into 2 sections: Schedule 1.1 and Schedule 2.4. These sections represent the two schedules where explanation reporting is required. You are required to provide the following 3 elements for all rows in your document that says either REPORT or * in column 4: 1. The reason for the variance 2. Impacts on staff and / or services (Note 1) 3. Action plan on how to mitigate the results of the variance (Note 1) Note 1: For the combined detail codes (A661, A663, A664, A375, A412 and A713) there is no need to complete the columns for impacts on staff and / or service as well as action plan on how to mitigate the results of the variance. Please note that the schedule number may not appear on your report. HINT: In order to see the variance that you are providing an explanation for, go back to the originating schedule in your active EFIS submission. HINT: In order to ensure that the text wraps within a cell: click on the cell, click on Format, then click on Cells, click on Alignment, then click on Wrap Text. SUBMITTING YOUR REPORT Upon the completion of the explanation report, you are required to submit TWO hard-copies. Please see the following section for details as to who it must be submitted to. Reporting After completing steps # 1 18, the data in the submission file should now be complete. CMSMs and DSSABs are required to send two signed copies of the following three documents printed out from the active EFIS submission of the 2012 Financial Statements: 1) Cover Page 2) Funding Entitlement Calculation (both pages) 3) Explanation Report Instructions for Completing 2012 Financial Statements Page 18

DSSABs will also be required to submit along with their Financial Statements submission a copy of the following: Approved DSSAB budget; and Levy Apportionment details. These forms are to be sent by June 28, 2013 to: Ms. Kristina Sundukovsky Secretary to the Director Financial Analysis & Accountability Branch 21 st Floor, Mowat Block, 900 Bay Street Toronto, Ontario M7A 1L2 CMSMs and DSSABs are not required to send hard copy print-outs of their full submission. Once a submission is promoted to active status, a CMSM or DSSAB has formally submitted their financial statements to the Ministry of Education. Review and Approval of Financial Statements Submission Financial analysts from the Financial Analysis & Accountability Branch will review the financial statements submission once it has been promoted to active status. The financial analysts will create a FO reviewed copy of the original submission and process any changes that are required following communications with the Early Learning Division and the CMSM/DSSAB. Once the file has been reviewed, the CMSM/DSSAB will receive an e-mail from the financial analysts noting that the review process is complete. Assistance with EFIS For user/navigation assistance on EFIS, contact: Adriana Mudron Tel: (416) 325-2058 E-mail: Adriana.Mudron@ontario.ca Stephen Shek Tel: (416) 325-8396 E-mail: Stephen.Shek@ontario.ca Emily Wells Tel: (416) 325-2036 E-mail: Emily.Wells@ontario.ca For log in assistance, contact: Mark Bonham Tel: (416) 325-8571 E-mail: Mark.Bonham@ontario.ca For data input assistance, contact your financial analyst: Lisa Bland Tel: (416) 326-0999 E-mail: Lisa.Bland@ontario.ca Virginie Cabannes Tel: (416) 326-2156 E-mail: Virginie.Cabannes@ontario.ca Alina Chimet Tel: (416) 212-9218 E-mail: Alina.Chimet@ontario.ca Shalini Dharna Tel: (416) 212-8410 E-mail: Shalini.Dharna@ontario.ca Paula Hatt Tel: (416) 326-1170 E-mail: Paula.Hatt@ontario.ca Karyn Morra Tel: (416) 325-2050 E-mail: Karyn.Morra@ontario.ca Brenda Shaw Tel: (519) 667-2040 E-mail: Brenda.Shaw@ontario.ca Instructions for Completing 2012 Financial Statements Page 19

Appendix A Purchase of Services Reason to Include the Expenditure in Schedule 4.1 (Col. 5) Fee Subsidy - DA A371 3,093,978 Included as used to purchase space - space translates into physical space, people and supplies. We need to capture the "people" portion. Fee Subsidy - ELCC A429 676,875 Included, Same as A371 Fee Subsidy - ELCD A663 186,500 Included, Same as A371 Exclude any amounts used for administration. Fee Subsidy - Extended Day Prg A664 32,198 Included, Same as A371 Exclude any amounts used for administration. Ontario Works - Formal - DA A400 690,250 Included as used to cover costs of child care arrangements - arrangements translates into people, supplies and space. We need to capture the "people' portion. Ontario Works - Informal - DA A401 15,000 Included, Same as A401 Operating - ELCD A661 1,099,619 Included as it's used for fee (see A371), wage subsidy (see A391/A390), and special needs resourcing (see A376). Exclude any amounts used for administration. Special Needs Resourcing - DA A376 595,023 Included as it's used to purchase resource teacher support. Special Needs Resourcing - ELCC A430 45,000 Included, Same as A376 Transition - Operating A665 204,974 Included as it's intended to support fee subsidies (see A371) and special needs resourcing (see A376). Wage Improvement - Non-Profit A446 243,968 Included as use to support annual wage increases. Wage Improvement - Commercial A644 71,832 Included, Same as A446 Wage Subsidy - Commercial A391 454,044 Included, used to support reduction of fees or remuneration Wage Subsidy - Commercial - ELCC A432 7,182 Included, Same as A391 Wage Subsidy - Non-Profit A390 2,130,643 Included, Same as A391 Wage Subsidy - Non-Profit - ELCC A431 27,818 Included, Same as A391 Total 9,574,904 6,594,417 2,935,487 Schedule 2.3 - Schedule of Total Gross Expenditures Assumptions made: Administration costs have not been subsidized by any of the following detail codes: A661, A663 and A664 You have 42 operators in total under purchase of service arrangements (for purposes of this example.) You have 41 operators that you provide wage subsidy and wage improvement funding to (categories in green above totalling $2,935,487). You have 1 operator that you provide only special needs resourcing to. It is detail code A430 = $45,000 which pays for 1 resource teacher. You have 41 operators that you provide wage subsidy, wage improvement as well as other funding to (fee subsidy, SNR, OW). Instructions for Completing 2012 Financial Statements Page 20

Appendix A continued Schedule 4.1 - Purchase of Service - Supported/Notional Staffing - page 1 Related to Wage Subsidy/Wage Improvement Detail Codes (Projected Expenditure for the Year) Number of Operators Role # FTE $ 41 Program?? Supervisors Program Staff?? Non-Program Staff??? 2,935,487 Related to All Other Detail Codes (Projected Expenditure for the Year) Number of Operators (Also in receipt of wage subsidy/wage improvement) Role # FTE $ 41 Program?? Supervisors Program Staff?? Non-Program Staff??? 5,275,534 Number of Operators (Not in receipt of wage subsidy/wage improvement) 1 Program Supervisors - - Program Staff - - Non-Program 1 45,000 Staff 1 45,000 : Section 1: should equal the detail codes in green per schedule 2.3 (all those related to wage subsidy and wage improvement) STEP 1 = You need to take the total costs incurred (in this example $2,935,487 and allocate the costs to the different roles). STEP 2 = Should you not be aware of the specific breakdown in staffing, you can use the licensed capacity to estimates the staffing levels and then from the staffing levels estimate the amount given to each based on your knowledge of your providers. Section 2: should represent the portion of costs reported in purple per schedule 2.3 (all those not related to wage subsidy and wage improvement) but only the portion that can be notionally attributed to staffing as long as they also receive wage subsidy STEP 1 = Should you not be aware of the specific breakdown (as a detailed budget was not provided to you) you will need to make some assumptions. For example, if you know that typically staffing represents 80% of the budget. Therefore the amount reported should be in total approximately $6,594,417 x 80% = $5,275,534. STEP 2 = Then proceed with the same step 2 of section 1 to complete the staffing levels and the amounts given to each. Section 3: should represent the portion of costs reported in purple per schedule 2.3(all those not related to wage subsidy and wage improvement) but only the portion that can be notionally attributed to staffing as long as they don't receive wage subsidy/ STEP 1 = In the illustrative example, there is 1 operator that does not receive wage subsidy/wage improvement for which you fund 1 special needs resource teacher. That operator, cost and FTE is reported in this section. Instructions for Completing 2012 Financial Statements Page 21