REVIEWING THE NUMBERS 2014-15 Annual Report
20
Funding basis reconciled to the financial statements In fiscal 2014-15, Financial Services held three educational sessions with the support of the Senate Planning, Priorities, and Budget Advisory Committee. These sessions explained some of the differences between the audited NFPS basis of accounting and the funding basis of accounting. A full reconciliation of the differences will follow; however, as the sessions illustrated, there are two key observations: • The funding basis accounts are a subset of the audited NFPS accounts; • The largest difference between the funding basis and the NFPS basis is the treatment of capital transactions. On a funding basis, all principal and interest payments on debt and all fund transfers into separate capital funds to purchase capital and related costs are considered expenses. The function of transferring the funds into separate capital fund accounts is a mechanism to ensure cash is actually set aside to purchase capital and related costs. Therefore, when the cash is transferred to separate capital funds the funding basis treats the transfer as an expense. On a NFPS basis, capital purchases are not expensed as they result in an
Table 3 ($000s)
Funding basis
Adjustments
Notes
Re-class.
NFPS basis
Revenue Student fees Grant revenue Internal chargebacks Other revenue Total revenue Personnel costs Other operating costs Total operating costs Surplus
145,946 94,594
145,946 1,857
[A]
51,134
19,202
[B]
298,785
21,059
(193,865)
824
[C] [D]
7,111
96,451 (7,111)
70,336
(7,111)
312,733 (193,041)
(97,406)
(12,522)
7,111
(102,817)
(291,271)
(11,698)
7,111
(295,858)
7,514
9,361
-
16,875
asset and are included on the Statement of Financial Position. This is similar to an individual who might purchase a home; the home becomes part of an individual’s net worth statement. It was communicated to Financial Services that those attending the educational sessions last year found them informative. It is anticipated that the Senate Planning, Priorities, and Budget Advisory Committee will support additional sessions in fiscal 2015-16. If you are interested and would like to be notified of future dates when they are set, please email budgetreport@brocku.ca Table 3 reconciles the 2014-15 financial results from a funding basis to the NFPS basis. The adjustments are primarily for non-cash transactions and timing differences. Each of the adjustments and reclassifications are described in more detail in the following section. The letter reference in the Notes column of Table 3 corresponds to the letter reference in each of the adjustment descriptions. There may be multiple adjustments for each letter as well as multiple letters for each adjustment. For example, the grant revenue net adjustment of $1,857 [A] represents a combination of a capital grants adjustment of ($573) and a reserve transfer adjustment of $2,340.
