Financial Accountability


Accounting Standards

School boards prepare their financial reports according to accounting principles prescribed by the ministry. These principles are, for the most part, in accordance with Canadian generally accepted accounting principles (GAAP). Revenues and expenditures are accounted for on the accrual basis of accounting. Exceptions to GAAP are prescribed by the ministry and are detailed in the notes to the financial statements. The notes are a significant part of the financial statements because they disclose information that provides a clearer understanding of the financial situation of the board.

External auditors certify that a board's financial statements have been prepared in accordance with CICA (Canadian Institute of Chartered Accountants) accounting and auditing standards. Ministry staff communicate regularly with the board's external auditors to provide information on ministry financial directives and discuss issues concerning the board's financial statements.

The Uniform Code of Accounts outlines the ministry's detailed financial data requirements for school boards by defining the smallest building block necessary to produce financial information for the ministry. It also defines how revenues and expenditures should be recorded and the accounts that are grouped for enveloping purposes. While boards are free to expand the accounts for their reporting purposes, they must summarize and report the mandatory accounts using the prescribed codes.

The annual review of financial reports ensures that the boards provide information to the public and to the ministry that fairly represents the financial results for the year in accordance with the prescribed GAAP and the Uniform Code of Accounts.

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