"Excel Version of Financial Statements"
A. Audited Financial Statement Reporting Process – Overview I. The Year-End Reporting Process for School Divisions The year-end audited financial statement reporting process for school divisions involves two distinct steps: Step 1: Audited Version Financial Statements (Excel File Format) Step 2: Electronic Financial Statement Data and Auditor Control Totals (SGSE) ** While both Step 1 and 2 provide the same information, it is important to recognize that they each use different files and processes. ** Step 1: Preparing the Year-End Audited Financial Statements (Excel format) and Submitting a Printed Copy to School Finance Branch & Regional Office Preparing the year-end financial statements Each year, School Finance Branch provides school divisions with an Excel format file to be used for the preparation of the year-end financial statements. The school division must also prepare the notes to the financial statements. Auditor’s opinion on the school division’s financial statements and notes: The school division must print the financial statements prepared using the Excel format file, and attach the notes to the financial statements. The auditor’s opinion will be provided on these statements and accompanying notes. The completed audited financial statement must include: Auditor’s Report Financial Statements and Schedules (see Appendix I) Notes to the Financial Statements, for example: - significant accounting policies - reserves - pensions - contingencies - subsequent events - other significant information that will assist the readers to better understand the financial statements b5c72be2-3975-4777-a36a-be762f281785.doc Page 1 of 5 Submitting a printed copy of the audited financial statements to School Finance Branch & the Regional Office: The school division must submit a printed copy of the audited financial statements, including the auditor’s report and notes to the financial statements, to: School Finance Branch Regional Office Step 2: Submitting the Audited Financial Statement Data Electronically to School Finance Branch via the SGSE System Submitting electronic audited financial statement data via the SGSE system: School divisions are required to submit their audited financial statement data to School Finance Branch electronically via the web-based SGSE system. Options for electronic submission of audited financial statement data: 1. File Upload - Uploading text formatted data files into the SGSE system. 2. Data Entry - Manually entering the data into data entry screens on the SGSE system. 3. Combination - A combination of the above two methods. For example, the school division might decide to submit its general ledger data through file upload, but use the SGSE data entry screens to submit its physical asset and tax schedule data. Or the school division might initially submit all of its data by file upload, but use the data entry screens to make any subsequent revisions. SGSE verification checks of school division financial statement data: The SGSE system will run verification checks to ensure that the data entered by a school division is complete and that information from different sources is consistent (e.g. amounts generated from chart-of-accounts data match corresponding amounts generated from tax schedule data). The SGSE system will also verify that the data entered by the school division matches key control totals entered into the SGSE system by the school division’s auditor (see below). To allow for rounding differences, variances of plus or minus 10 are allowed for all verification checks except for the chart-of-accounts total which must equal exactly zero. The school division’s financial statement data must pass all of these verification checks before the system will allow the secretary-treasurer to approve the data. b5c72be2-3975-4777-a36a-be762f281785.doc Page 2 of 5 II. Auditor Control Totals on the SGSE System Purpose of auditor control totals: Commencing with the 2003 fiscal year, auditors will enter certain key control totals into the SGSE system for school divisions that they audit. The control totals are specifically identified amounts from the audited financial statements (Excel version). As part of the verification checks, the SGSE system will check these control totals against the data entered into the SGSE system by the school division. This verification will provide assurance that totals from data entered into the SGSE system by the school division match key amounts in the audited financial statements as entered into the SGSE system by auditors. In this way, auditors provide their opinion only on the printed Excel format financial statements and notes – they are not auditing the data entered into the SGSE system by school divisions. The control totals from the printed Excel format financial statements entered into the SGSE by auditors simply act as a check and balance that the two sets of data correspond. Auditor control totals: Auditors will enter the following 14 control total amounts from the school division’s audited financial statements (printed Excel version) into the department’s web-based SGSE system: Statement of Financial Position – page 1 1.) School Position current year total Statement of Financial Activities and Fund Balances – page 2 2.) Total Revenue current year consolidated 3.) Total Expenditures current year consolidated 4.) LT Debt Issued current year consolidated 5.) LT Debt Repaid current year consolidated 6.) Surplus (Deficit) for the Yr current year consolidated 7.) Closing Fund Balance current year consolidated Statement of Tax Accounts – page 12 8.) Total Penalty 9.) Total Current Levy 10.) Total Grants-in-Lieu 11.) Total Trailer Fees & Adjustments 12.) Total Discounts & Cancellations Statement of Tax Assessments – page 15 13.) Total Total Taxable Assessment Statement of Tax Exempt Assessments – page 16 14.) Total Total Exempt Assessment b5c72be2-3975-4777-a36a-be762f281785.doc Page 3 of 5 SGSE system verification of school division data to auditor control totals The SGSE system will check totals generated from the data entered into the system by the school division to the control totals entered by the school division’s auditor when the Financial Verification report is run (Other Reports module – Financial Verification). The school division may run this report at any time. This report is not available to auditors. As well, the SGSE system will automatically run the verification checks when a secretary- treasurer initiates approval of the audited financial statement data on the SGSE system Note: While the Financial Verification report is not available to school division auditors, auditors are able to run an Audit Data report that will give them a record of the amounts they have entered into the system. Rounding differences To allow for rounding differences, the SGSE system permits a difference of plus or minus 10 between each of the auditor’s control totals and the amounts generated from the school division’s data. Deadline for auditor control totals in the SGSE system For each fiscal year-end, the department “opens” the SGSE system for a specified period of time to allow school divisions and their auditors to enter the required audited financial statement data and control totals on the SGSE system. Secretary-treasurers will be advised of the applicable reporting deadlines each year. The auditor may enter and edit the audit data control totals anytime during the period the system is open for the specified fiscal year. As explained in the section “SGSE system verification of school division data to auditor control totals”, the SGSE system runs a number of data verification checks before allowing the Secretary-Treasurer to approve the school division’s data. These checks include verification that the totals generated by the data entered by the school division match the control totals entered by auditors. Therefore, a secretary-treasurer will not be able to finalize their data on the SGSE system until after the auditor has entered the audit data control totals onto the system. The SGSE system will not allow data to be entered for a particular fiscal year outside of the authorized period (the system “locks” the fiscal year when the deadline expires). This means that once the deadline for entering the data has expired, no data may be entered or edited for that fiscal year. It is therefore critical that secretary-treasurers and auditors have all of their data entered and verified by the specified deadline. b5c72be2-3975-4777-a36a-be762f281785.doc Page 4 of 5 Entering the auditor control totals into the SGSE system The auditor control totals are entered into the SGSE system through the SGSE School Finance – Auditor Amounts module. For details, refer to the SGSE School Finance – Auditor Amounts manual section: B. Auditor Control Totals. Printing the Audit Data report Auditors may print a report of their auditor control totals through the SGSE School Finance – Other Reports module. For details, refer to the SGSE School Finance – Auditor Amounts manual section: C. Other Reports – Audit Data. Other information about school division audited financial statements and the SGSE School Finance system Additional information about school division audited financial statements and the SGSE School Finance system is available in the SG-SpEd School Finance Manual. This manual is available on the SGSE School Grants/Special Education home page. b5c72be2-3975-4777-a36a-be762f281785.doc Page 5 of 5