Public Sector Accounting Standards

Public Sector Accounting Standards

Model Financial Statements for Government Organizations

[Consolidated] financial statements of [ABC] as at [Month day, year]

Contents

Disclaimer 1

Introduction 1

Management’s Report 3

Independent Auditor’s Report 4

[Consolidated] Statement of Financial Position 6

[Consolidated] Statement of Operations 7

[Consolidated] Statement of Change in Net Financial Assets (Debt) 8

[Consolidated] Statement of Cash Flows 9

Notes to the [Consolidated] Financial Statements For the year then ended [month day, year] 11

Schedule A – Government Business Enterprises Condensed Supplementary Financial Information 46

Schedule B - Adjustments to Government Business Enterprise Financial Statements 48

Schedule C – Segmented Information 49

Disclaimer

While every effort has been made to ensure accuracy of this publication as of its release date (February 24, 2011), accounting standards change continuously. As such, information contained in this publication may no longer be comprehensive. This publication is not intended to cover all aspects of Public Sector Accounting Standards (PSAB) or substitute reading the actual Standards and Interpretations when dealing with specific issues as some information may have been omitted that may be relevant to a particular reader. No responsibility for loss to any person acting or refraining from acting as a result of any material in this publication can be accepted by the Office of the Auditor General of British Columbia. Recipients should not act on the basis of this publication without seeking professional advice.

Introduction

This publication was prepared by the Office of the Auditor General of British Columbia to assist Provincial government organizations in British Columbia who are transitioning to PSAB from the Canadian Institute of Chartered Accountants Handbook Part V (CICA Handbook) (i.e. the standards prior to transition to International Financial Reporting Standards).

Government Business Enterprises

This publication would not be used by government business enterprises who, under the PSAB framework (“Introduction to Public Sector Standards”), are directed to report under the standards applicable to publicly accountable enterprises in the CICA Handbook. Government business enterprises will be applying International Financial Reporting Standards (IFRS) along with all other publicly accountable enterprises in Canada for fiscal years beginning on or after January 1, 2011.

Timing of Transition for Organizations other than Government Business Enterprises

As directed by government in British Columbia, PSAB will be implemented for the first fiscal year beginning on or after January 1, 2011, except for those organizations designated as “health” or “education” sector organizations that will transition in their first fiscal year beginning on or after January 1, 2012.

Other Government Organizations (OGOs)

Under the PSAB framework, OGOs have the option of reporting under either PSAB or standards applicable to publicly accountable enterprises in the CICA Handbook (i.e. IFRS). In British Columbia, all provincial OGOs have been directed by government to apply PSAB.

For most OGOs the fiscal year of transition will be the year ended March 31, 2012. Refer to the companion document “Summary Comparison of Canadian Public Sector Accounting Standards With the CICA Handbook Part V” for a description of the standards for the first-time adoption of PSAB.

Government Not-for-Profit Organizations (GNPOs)

Under the revised PSAB framework, GNPOs will be required to follow PSAB and will no longer follow the CICA Handbook. PSAB recently incorporated a new standard (PS 4200) providing the option of not-for-profit accounting similar to the current existing standards specific to not-for-profit organizations in the CICA Handbook (i.e. HB 4400). However, in British Columbia, GNPOs have been directed by government to follow PSAB without the incorporation of PS 4200.

GNPOs that are “health” or “education” sector organizations will transition in their fiscal year ended March 31, 2013. Other GNPOs will transition in their fiscal year ended March 31, 2012. Refer to the companion document “Summary Comparison of Canadian Public Sector Accounting Standards With the CICA Handbook Part V” for a description of the standards for the first-time adoption of PSAB.

Using This Publication

The government reporting entity of the province of British Columbia is comprised of many different organizations with a multitude of transactions. No one publication can be expected to address every type of transaction or reporting situation that may arise. The application of accounting standards requires professional judgment. This is particularly true for PSAB as there are a number of areas where specific guidance is not provided.

In British Columbia, provincial government organizations are expected to consult with the Comptroller General prior to exercising any election or choice available to them under the reporting framework and when adopting policies and practices to implement applicable accounting standards.

Management’s Report

Reference PS 1200.005-6

Management’s Responsibility for the [Consolidated] Financial Statements

The [consolidated] financial statements have been prepared by management in accordance with Canadian public sector accounting standards and the integrity and objectivity of these statements are management’s responsibility. Management is also responsible for all of the notes to the [consolidated] financial statements and schedules, and for ensuring that this information is consistent, where appropriate, with the information contained in the [consolidated] financial statements.

Management is also responsible for implementing and maintaining a system of internal controls to provide reasonable assurance that reliable financial information is produced.

The [Board of Directors/Trustees] are responsible for ensuring that management fulfills its responsibilities for financial reporting and internal control and exercises these responsibilities through the [Board/Trustees]. The [Board/Trustees] reviews internal [consolidated] financial statements on a monthly basis and external audited [consolidated] financial statements yearly.

The external auditors, [Name of the audit firm], conduct an independent examination, in accordance with Canadian auditing standards, and express their opinion on the [consolidated] financial statements. The external auditors have full and free access to financial management of [ABC] and meet when required.

On behalf of [ABC]

______/ ______
[Name] / [Name]
[Title] / [Title]

[Month Day, Year]

Independent Auditor’s Report

(the report of the auditor would go here)

[ABC]

[Consolidated] Statement of Financial Position

As at March 31, 20x2

[In thousands of dollars]

Reference / Note / March 31, 20X2 / March 31, 20X1 / April 1, 20X0[1]
(Restated - Note 2)
Financial assets
1200.046 (a) / Cash and cash equivalents / 6 / 9,133 / 9,418 / 9,054
1200.046 (b) / Temporary investments / 7 / 7,200 / 5,582 / 6,589
1200.046 (c) / Accounts receivable / 8 / 2,008 / 3,401 / 2,389
1200.046 (d) / Inventories for resale and other assets held for sale / 25 / 30 / 27
1200.046 (e) / Due from government/other government organizations / 9 / 345 / 420 / 385
1200.046 (f) / Loans receivable / 10 / 542 / 517 / 505
1200.046 (g) / Portfolio investments / 11 / 7,253 / 3,580 / 4,216
1200.046 (h) / Investments in government business enterprises / 12 / 1,456 / 1,568 / 1,751
1200.046 (i) / Investments in government business partnerships / 13 / 1,247 / 1,344 / 1,248
3230.03 (b) / Sinking fund investments / 14 / 745 / 712 / 769
29,954 / 26,572 / 26,933
Liabilities
1200.041 (a) / Accounts payable & accrued liabilities / 16 / 6,858 / 6,319 / 6,246
1200.041(b) / Employee future benefits / 17 / 776 / 554 / 664
1200.041 (e) / Due to government/other government organizations / 18 / 4,396 / 4,387 / 4,352
1200.041 (c) / Deferred revenue / 19 / 68,979 / 70,263 / 73,399
1200.041 (d) / Long term debt / 20 / 10,000 / 8,000 / 8,500
PSG-2.24 (b) / Obligations under capital leases / 22 / 203 / 192 / 180
91,212 / 89,715 / 93,341
Net financial assets (debt) / (61,258) / (63,143) / (66,408)
Non-financial assets
1200.053 (a) / Tangible capital assets / 25 / 54,850 / 56,877 / 59,940
1200.053 (b) / Inventories held for use / 785 / 811 / 2,178
1200.053 (c) / Prepaid expenses / 566 / 259 / 2,178
56,201 / 57,947 / 64,296
Accumulated surplus (deficit) / 27 / (5,057) / (5,196) / (2,112)
1200.068 / Contingent assets / 15
3300.15 / Contingent liabilities / 23
3100.30 / Designated assets / 28
2130.06 / Measurement uncertainty / 34
The accompanying notes and supplementary schedules are an integral part of these [consolidated] financial statements.

Signature Signature

Name, Title Name, Title

[ABC]

[Consolidated] Statement of Operations

For the Year ended March 31, 20x2

[In thousands of dollars]

Reference / Note / Budget (Note 38) / 20X2 / 20X1
1200.074(a) & 077-.081 / Revenues / (Restated - Note 2)
Grants / 47,000 / 46,832 / 45,031
Operating / 2,500 / 1,849 / 1,585
Fees / 33,000 / 36,497 / 32,676
3040.27 / Income from portfolio investments / 2,500 / 2,675 / 2,750
Other investment income / 3,000 / 3,211 / 3,236
3070.58 / Business enterprises / 1,500 / 2,125 / 2,542
Other / - / - / -
89,500 / 93,209 / 87,820
1200.074(b) & 082 & .084-.085 / Expenses / 31
Program delivery (program 1) / 47,000 / 47,963 / 47,632
Program delivery (program 2) / 28,000 / 28,346 / 27,615
Program delivery (program 3) / 10,400 / 11,105 / 10,371
Administration / 5,027 / 5,125 / 5,245
Interest / 20 / 500 / 531 / 510
90,927 / 93,070 / 91,373
Annual surplus (deficit) / (1,427) / 139 / (3,553)
Accumulated surplus/(deficit) at beginning of year / (5,185) / (5,196) / (1,643)
Accumulated surplus/(deficit) at end of year / (6,612) / (5,057) / (5,196)

The accompanying notes and supplementary schedules are an integral part of these [consolidated] financial statements.

[ABC]

[Consolidated] Statement of Change in Net Financial Assets (Debt)

For the Year ended March 31, 20x2

[In thousands of dollars]

Reference / Budget (Note 38) / 20X2 / 20X1
(Restated - Note 2)
1200.091 / Annual surplus (deficit) / (1,427) / 139 / (3,553)
1200.092 / (Acquisition)/disposal of tangible capital assets / (3,000) / (2,231) / (826)
1200.093a / Amortization of tangible capital assets / 4,000 / 4,258 / 3,889
1200.093b / (Gain)/loss on sale of tangible capital assets / - / - / 3,713
1200.093c / Write-downs on tangible capital assets / - / - / -
1200.093d / Capitalized interest / - / - / -
1200.093e / Capitalized overhead / - / - / -
1,000 / 2,027 / 6,776
1200.093g / Acquisition of supplies inventories
1200.093g / Acquisition of prepaid expense / - / (307) / 97
1200.093f / Consumption of supplies inventories / - / 26 / (55)
1200.093f / Use of prepaid expense / - / - / -
- / (281) / 42
1200.093h / Effect of self-supported subsidiary other comprehensive income / - / - / -
(Increase) decrease in net financial assets (debt) / (427) / 1,885 / 3,265
1200.094 / Net financial assets (debt) at beginning of year / (64,000) / (63,143) / (66,408)
1200.094 / Net financial assets (debt) at end of year / (64,427) / (61,258) / (63,143)

The accompanying notes and supplementary schedules are an integral part of these [consolidated] financial statements.

[ABC]

[Consolidated] Statement of Cash Flows

For the Year ended March 31, 20x2

[In thousands of dollars]

Reference / 20X2 / 20X1
1200.100 / Operating transactions / (Restated - Note 2)
Cash received from:
1200.104f / Transfers / 47,000 / 45,000
1200.104c / Operating / 1,822 / 1,478
1200.104b / Fees, permits, licenses and fines / 37,709 / 32,676
1200.104j / Interest / 2,651 / 3,296
1200.104d / Business enterprises / 2,145 / 2,542
1200.104e / Dividends / - / -
Other / 2,261 / 2,599
93,588 / 87,591
Cash paid for:
1200.104i / Salaries and benefits / 47,685 / 47,540
1200.104h / Material supplies / 8,035 / 7,856
1200.104c / Services / 2,473 / 2,432
1200.104j / Interest / 264 / 510
1200.104g / Rent / - / -
1200.104g / General administration / 26,887 / 26,458
Other / 5,941 / 5,538
1200.104f / Grants and other transfers / - / -
91,285 / 90,334
Cash provided by (applied to) operating transactions / 2,303 / (2,743)
1200.100 / Capital transactions
1200.108b / Proceeds on sale of tangible capital assets / - / -
1200.108a / Cash used to acquire tangible capital assets / (2,231) / (826)
Cash provided by (applied to) capital transactions / (2,231) / (826)
1200.100 / Investing transactions
1200.109 / Proceeds from disposals and redemptions of portfolio investments / 2,675 / 2,750
1200.109 / Repayment of loans and advances / 50 / (47)
1200.109 / Temporary investments / (1,618) / 1,007
1200.109 / Portfolio investments / (3,673) / 636
1200.109 / Loans and advances / - / -
1200.109 / Investments in government business enterprises / 209 / 87
1200.109 / Cash provided by (applied to) investing transactions / (2,357) / 4,433
1200.100 / Financing transactions
1200.110 / Debt issues / 2,000 / (500)
1200.110 / Debt retirement / - / -
Cash provided by (applied to) financing transactions / (2,000) / (500)
(Decrease ) / Increase in cash and cash equivalents / (285) / 364
1200.099 / Cash and cash equivalents at beginning of year / 9,418 / 9,054
1200.099 / Cash and cash equivalents at end of year / 9,133 / 9,418

2

[ABC]

Notes to [consolidated] financial statements

for the year ended March 31, 20x2 - continued

[ABC]

Notes to [Consolidated] Financial Statementsfor the year ended March 31, 20x2

1.  Nature of Operations

Reference PS 1000, 1100

[ABC] is a [type of entity] [e.g. School district, Crown corporation, Post-secondary educational institution, Health authority, etc.] [established on date by name of legislation]and operates under the authority of the [name of all relevant Acts]. [ABC] is a [type of organization] named in [Schedule X] of the [Government Reporting Act] and reports to the Legislative Assembly through the [Ministry of Y]. [ABC] has # issued shares, held by the [title of Ministry]. The mandate of [ABC] is to provide services to […]. These services are grouped into the following key areas: [brief description of functional line items].