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Education Act

ONTARIO REGULATION 193/10

Restricted Purpose RevenueS

Consolidation Period: From June 16, 2016 to the e-Laws currency date.

Last amendment: O. Reg. 221/16.

This is the English version of a bilingual regulation.

Definitions

1. In this Regulation,

“capital asset cost”, in respect of a fiscal year, has the same meaning as “capital asset cost” or as “capital asset addition”, as the case may be, in the legislative grant regulation for the fiscal year; (“coût d’immobilisations”)

“legislative grant regulation” means a regulation made under subsection 234 (1) of the Act; (“règlement sur les subventions générales”)

“revenue from other sources” for the fiscal year, has the same meaning as in the legislative grant regulations for that fiscal year; (“recettes provenant d’autres sources”)

“school renewal expenditure” is an expenditure by a board that relates to a thing set out in subsection 6.2 (2). (“dépense de réfection des écoles”) O. Reg. 193/10, s. 1; O. Reg. 157/11, s. 1; O. Reg. 27/16, s. 1.

Interpretation

2. Subject to subsection 4 (3), nothing in this Regulation shall be interpreted to limit the amount that a board may use for a purpose set out in this Regulation.  O. Reg. 193/10, s. 2; O. Reg. 27/16, s. 2.

Internal audits

3. A district school board shall use the amount calculated as follows, in respect of a fiscal year, only for the purpose of internal audits:

1. Take the amount determined for internal audits (part of the board’s administration and governance allocation) under the legislative grant regulation for the fiscal year.

2. If applicable, add the portion of the amount determined for the OMERS contributions supplement (part of the grant payable to the board) under the legislative grant regulation that is attributable to internal audits.

3. If applicable, subtract the portion of the amount determined for public sector compensation restraint (part of the board’s cost adjustment and new teacher induction program allocation) under the legislative grant regulation that is attributable to internal audits.  O. Reg. 157/11, s. 2.

School renewal

4. (1) A board shall use the amount calculated as follows, in respect of a fiscal year, only for the purpose of school renewal expenditures:

1. Take the amount determined for the board’s school renewal allocation under the legislative grant regulation for the fiscal year.

2. Subtract the amount calculated as follows:

i. Take the amount of the board’s depreciation for the fiscal year for tangible capital assets that are acquired as a result of expenditures made by the board that are school renewal expenditures.

ii. Subtract the amount of the board’s deferred capital contributions recognized in revenue in the fiscal year, in respect of the assets referred to in subparagraph i.  If the difference is a negative number, it is deemed to be zero.  O. Reg. 157/11, s. 3 (1); O. Reg. 82/14, s. 1 (1); O. Reg. 27/16, s. 3 (1).

(2) A district school board shall use the amount held in its pupil accommodation allocation reserve fund on August 31, 2010 that is attributable to school renewal only for the purpose of school renewal expenditures.  O. Reg. 193/10, s. 4 (2); O. Reg. 82/14, s. 1 (2).

(3) A board shall not use more than the amount calculated in accordance with the following formula, in respect of a fiscal year, for the purpose of school renewal expenditures that are not capital asset costs:

[(A + B + C) × 1.05]/3

in which

  “A” means the amount used by the board in the 2012-2013 fiscal year for the purpose of school renewal expenditures that are not capital asset costs,

  “B” means the amount used by the board in the 2011-2012 fiscal year for the purpose of school renewal expenditures that are not capital asset costs, and

  “C” means the amount used by the board in the 2010-2011 fiscal year for the purpose of school renewal expenditures that are not capital asset costs.

O. Reg. 82/14, s. 1 (3).

(4) Revoked: O. Reg. 27/16, s. 3 (2).

School condition improvement

4.1 (1) A board shall use the amount determined for school condition improvement (part of the board’s pupil accommodation allocation) under the legislative grant regulations only for the purpose of school condition improvement expenditures within the meaning of subsection (2).  O. Reg. 157/11, s. 4.

(2) An expenditure by a board is a school condition improvement expenditure if it meets all of the following criteria:

1. It is a school renewal expenditure.

2. It meets the criteria set out in subparagraphs 1 i, ii and iii of subsection 6.2 (1). O. Reg. 27/16, s. 4; O. Reg. 221/16, s. 1.

Temporary accommodation for pupils

4.1.1 (1) A board shall use the amount determined for temporary accommodation for pupils (part of the board’s pupil accommodation allocation) under the legislative grant regulations only for the purpose of temporary pupil accommodation expenditures within the meaning of subsection (2). O. Reg. 221/16, s. 2.

(2) An expenditure by the board is a temporary pupil accommodation expenditure if it meets one of the following criteria:

1. It is a cost incurred by the board for operating leases for temporary pupil accommodations needed for the provision of elementary or secondary pupil places, but not for temporary pupil accommodations needed for the provision of full day junior kindergarten and kindergarten.

2. It is a cost incurred by the board for the relocation and installation of temporary pupil accommodations needed for the provision of elementary or secondary pupil places, but not for temporary pupil accommodations needed for the provision of full day junior kindergarten and kindergarten.

3. It is a capital asset cost incurred by the board for temporary pupil accommodations needed for the provision of elementary or secondary pupil places, but not for temporary pupil accommodations needed for the provision of full day junior kindergarten and kindergarten. O. Reg. 221/16, s. 2.

Retrofitting school space for child care

4.2 (1) A board shall use the amount determined for retrofitting school space for child care (part of the board’s pupil accommodation allocation) under the legislative grant regulations only for the purpose of expenditures described in subsection (2). O. Reg. 116/13, s. 2.

(2) An expenditure referred to in subsection (1) is an expenditure,

(a) that is in respect of costs incurred by the board to retrofit space in buildings or on real property owned, leased or otherwise acquired by the board, for the purpose of providing child care for children who are younger than 44 months of age; and

(b) that meets the criteria for capitalizing a tangible capital asset set out in the most recent version of the document entitled “District School Board and School Authority Tangible Capital Assets: Provincial Accounting Policies and Implementation Guide”, revised August 2012, which is available for public inspection at the offices of the Education Finance Branch of the Ministry of Education and on the Ministry’s website. O. Reg. 116/13, s. 2.

Special education

5. (1) Subject to subsection (2), a board shall use the amount calculated as follows, in respect of a fiscal year, only for the purpose of special education:

1. Take the amount determined for its special education allocation under the legislative grant regulation for the fiscal year.

2. If applicable, add the amount determined for the OMERS contributions supplement (part of the grant payable to the board) under the legislative grant regulation that is attributable to special education.  O. Reg. 157/11, s. 5.

(1.1) Revoked:  O. Reg. 157/11, s. 5.

(2) Where a board did not incur expenses in a fiscal year by reason of a strike or lock-out affecting the operations of the board, the amount referred to in subsection (1) shall be adjusted by deducting the portion of those unincurred expenses that is attributable to special education.  O. Reg. 193/10, s. 5 (2).

(3) For the purposes of subsection (2), unincurred expenses shall be calculated in accordance with Ontario Regulation 486/98.  O. Reg. 193/10, s. 5 (3).

Mental health leaders

5.1 (1) Subject to subsection (2), a district school board shall use the amount determined for mental health leaders (part of the board’s learning opportunities allocation) under the legislative grant regulations only for the purpose of paying the salaries and benefits of mental health leaders. O. Reg. 82/14, s. 2; O. Reg. 205/15, s. 1 (1).

(2) Where a district school board did not incur expenses in a fiscal year by reason of a strike or lock-out affecting the operations of the board, the amount referred to in subsection (1) shall be adjusted by deducting the portion of those unincurred expenses that is attributable to mental health leaders. O. Reg. 82/14, s. 2; O. Reg. 205/15, s. 1 (2).

(3) For the purposes of subsection (2), unincurred expenses shall be calculated in accordance with Ontario Regulation 486/98 (Board Expenses not Incurred by Reason of Strike or Lock-out) made under the Act. O. Reg. 82/14, s. 2.

Learning opportunities programs

5.2 (1) Subject to subsection (2), a board shall use the sum of the amounts determined for all of the following programs (part of the board’s learning opportunities allocation) under the legislative grant regulations only for the purpose of one or more of those programs:

1. Literacy and numeracy assistance.

2. Student success teachers and literacy and numeracy coaches, for grades 7 and 8.

3. Student success, grades 7 to 12.

4. Specialist High Skills Major Program.

5. School effectiveness framework.

6. Ontario focused intervention partnership tutoring.

7. Outdoor education. O. Reg. 205/15, s. 2; O. Reg. 221/16, s. 3.

(2) Where a board did not incur expenses in a fiscal year by reason of a strike or lock-out affecting the operations of the board, the amount referred to in subsection (1) shall be adjusted by deducting the portion of those unincurred expenses that is attributable to the programs set out in subsection (1). O. Reg. 205/15, s. 2.

(3) For the purposes of subsection (2), unincurred expenses shall be calculated in accordance with Ontario Regulation 486/98 (Board Expenses not Incurred by Reason of Strike or Lock-out) made under the act. O. Reg. 205/15, s. 2.

Library staff

5.3 (1) Subject to subsection (2), a district school board shall use the amount determined for library staff (part of the board’s learning opportunities allocation) under the legislative grant regulations only for the purpose of paying the salaries and benefits of library staff. O. Reg. 221/16, s. 4.

(2) Where a district school board did not incur expenses in a fiscal year by reason of a strike or lock-out affecting the operations of the board, the amount referred to in subsection (1) shall be adjusted by deducting the portion of those unincurred expenses that is attributable to library staff. O. Reg. 221/16, s. 4.

(3) For the purposes of subsection (2), unincurred expenses shall be calculated in accordance with Ontario Regulation 486/98 (Board Expenses not Incurred by Reason of Strike or Lock-out) made under the Act. O. Reg. 221/16, s. 4.

First Nation, Métis and Inuit education lead

5.4 (1) Subject to subsection (2), a district school board shall use at least 50 per cent of the amount determined for the First Nation, Métis and Inuit education lead (part of the board’s First Nation, Métis and Inuit education supplemental allocation) under the legislative grant regulations only for the purpose of paying the salary and benefits of a First Nation, Métis and Inuit education lead. O. Reg. 221/16, s. 4.

(2) Where a district school board did not incur expenses in a fiscal year by reason of a strike or lock-out affecting the operations of the board, the amount referred to in subsection (1) for the First Nation, Métis and Inuit education lead shall be adjusted by deducting the portion of those unincurred expenses that is attributable to the salary and benefits of a First Nation, Métis and Inuit education lead. O. Reg. 221/16, s. 4.

(3) For the purposes of subsection (2), unincurred expenses shall be calculated in accordance with Ontario Regulation 486/98 (Board Expenses not Incurred by Reason of Strike or Lock-out) made under the Act. O. Reg. 221/16, s. 4.

First Nation, Métis and Inuit education board action plan

5.5 A district school board shall use any portion of the amount determined for the First Nation, Métis and Inuit education lead under subsections 5.4 (1) and (2) that it does not use for the purpose of paying the salary and benefits of a First Nation, Métis and Inuit education lead only for the purpose of the board action plan referred to in the First Nation, Métis and Inuit education supplemental allocation under the legislative grant regulations. O. Reg. 221/16, s. 4.

Special equipment

6. (1) Subject to subsection (2), a board shall use the amount calculated as follows, in respect of a fiscal year, only for the purpose of special equipment:

1. Take the amount determined for special equipment (part of the board’s special education allocation) under the legislative grant regulation for the fiscal year.

2. Subtract the sum of all approved special equipment claims, as described in the legislative grant regulation, made by the board for pupils of the board for the fiscal year.  O. Reg. 157/11, s. 6.

(2) The amount determined under subsection (1) shall not be used for the purpose of special equipment that is the subject of an approved special equipment claim.  O. Reg. 193/10, s. 6 (2).

(3) The amount determined under subsection (1) for a fiscal year shall be used in accordance with any guidelines referred to in the legislative grant regulations for that fiscal year in respect of special equipment.  O. Reg. 193/10, s. 6 (3).

Education development charges

6.1 If a district school board sells, leases or otherwise disposes of real property that was acquired, in whole or in part, by the board or by another person, with funds withdrawn from an education development charge account, and the property was not used to provide accommodation for pupils, the board shall use the net proceeds (as described under subsection 6.2 (7)) of the sale, lease or other disposition, up to the amount withdrawn for the property’s acquisition, in accordance with the following rules:

1. If the board has an education development charge by-law that applies to the area in which the property is located, the proceeds shall be allocated to the education development charge account established in respect of that by-law and used for the purposes set out in subsection 16 (2) of Ontario Regulation 20/98 (Education Development Charges — General) made under the Act.

2. If paragraph 1 does not apply but the board has an education development charge account established under subsection 23 (4) of Ontario Regulation 20/98 from which money may be used to acquire land or an interest in land in the area in which the property is located, the proceeds shall be allocated to that account and used for the purposes set out in subsection 23 (6) or (6.0.1) of that regulation, as the case may be.

3. If paragraphs 1 and 2 do not apply but the board has one or more education development charge accounts from which money may be used to acquire land or an interest in land in any part of the region prescribed under clause 257.101 (1) (d) of the Act in which the property is located, the proceeds shall be allocated to those accounts and used for the purposes set out in subsection 16 (2), 23 (6) or (6.0.1) of Ontario Regulation 20/98, as the case may be.

4. If paragraphs 1, 2 and 3 do not apply, the proceeds shall be allocated to the education development charge accounts established under section 16.1 of Ontario Regulation 20/98 and used for the purposes set out in subsection 16.1 (2) of that regulation.  O. Reg. 365/10, s. 2.

Dispositions of real property

6.2 (1) Subject to subsection (5), a district school board shall use all proceeds of sales, capital leases and other dispositions of real property only for the following purposes:

1. Acquiring by purchase, capital lease or otherwise the things listed in subsection (2), if the costs to acquire those things meet all of the following criteria:

i. The cost is a capital asset cost.

ii. The cost is not incurred for increasing the gross floor area of a building.

iii. The cost is not incurred for retrofitting or repairing temporary pupil accommodations.

2. Subject to subsections (6) to (8), acquiring by purchase, capital lease or otherwise, real property to be used by the board for board administration purposes, and additions, alterations, renovations or major repairs to real property used by the board for those purposes. O. Reg. 27/16, s. 5 (1).

(2) The following are the things referred to in paragraph 1 of subsection (1):

1. Improvements to school sites.

2. School buildings, fixtures of school buildings, fixtures of school properties, and additions, alterations, renovations or major repairs to school buildings, fixtures of school buildings or fixtures of school properties.

3. Furniture and equipment to be used in school buildings.

4. Library materials for the initial equipping of libraries in school buildings.

5. Installations on school properties to supply school buildings on the properties with water, sewer, septic, electrical, heating, cooling, natural gas, telephone or cable services, and alterations, replacements or major repairs to those installations.

6. Changes to the level, drainage or surface of school properties.  O. Reg. 365/10, s. 2; O. Reg. 27/16, s. 5 (2, 3).

(3) Revoked: O. Reg. 27/16, s. 5 (4).

(4) Subject to subsection (5), every district school board shall use all proceeds of insurance on property of a kind referred to in subsection (2) only for the purposes referred to in subsection (1).  O. Reg. 365/10, s. 2.

(4.1) If a district school board uses the proceeds referred to in subsections (1) to (4) in a fiscal year, those proceeds shall be used in accordance with the following rules:

1. The board shall use at least 80 per cent of the proceeds used in that fiscal year to pay for costs that relate to any of the following major group elements:

i. Substructure.

ii. Shell.

iii. Services.

2. The board shall not use more than 20 per cent of the proceeds used in that fiscal year to pay for costs that relate to any of the following major group elements:

i. Interiors.

ii. Equipment and furnishing, excluding moveable furnishings.

iii. Special construction and demolition.

iv. Building sitework. O. Reg. 27/16, s. 5 (5).

(4.2) For the purposes of subsection (4.1), major group elements shall be determined and classified in accordance with the American Society for Testing and Materials (ASTM) E1557 Standard Classification for Building Elements and Related Sitework - Uniformat II, as it read on September 1, 2015. O. Reg. 27/16, s. 5 (5).

(5) Subsections (1) and (4) do not apply to,

(a) proceeds that the board is required to use in accordance with section 6.1;

(b) proceeds that the board is required to pay another board under an agreement approved by the former Education Improvement Commission; or

(c) proceeds that the board is required to pay to the Crown in right of Canada pursuant to an agreement under subsection 188 (3) of the Act.  O. Reg. 365/10, s. 2.

(6) The amount that a district school board may use from the proceeds referred to in subsections (1) and (4) for the purpose described in paragraph 2 of subsection (1) shall not exceed the total of the board’s net proceeds from sales, capital leases and other dispositions of real property that, immediately before January 1, 1998, included buildings that were used by an old board for board administration purposes.  O. Reg. 365/10, s. 2; O. Reg. 27/16, s. 5 (6).

(7) Subject to subsection (8), for the purpose of subsection (6), the net proceeds from a sale, lease or other disposition is equal to the proceeds from the sale, lease or other disposition, less the expenses incurred for commissions, legal fees, appraisal fees, registration fees and adjustments to tax and utility accounts in respect of the sale, lease or other disposition.  O. Reg. 365/10, s. 2.

(8) For the purpose of subsection (6), if more than two hectares of land are included in property that is sold, leased or otherwise disposed of, the net proceeds from the sale, lease or other disposition shall be determined in accordance with the following formula:

A × (B ÷ C)

where,

  A = the net proceeds from the sale, lease or other disposition, determined in accordance with subsection (7),

B = the fair market value, at the time of the sale, lease or other disposition, of a part of the property, not exceeding two hectares in area, that includes,

(a) the land on which the buildings used by the old board for board administration purposes were situated, and

(b) any other part of the property that was required to permit those buildings to be used by the old board for board administration purposes,

C = the fair market value, at the time of the sale, lease or other disposition, of all the property.

O. Reg. 365/10, s. 2.

(9) A district school board shall not use the proceeds referred to in subsection (1) for the purpose described in paragraph 2 of subsection (1) unless the following requirements have been met:

1. The board must publish the following on a publicly accessible website or in a newspaper that, in the opinion of the secretary of the board, is of general circulation in the board’s area of jurisdiction:

i. Notice of the board’s proposal to use proceeds for the purpose described in paragraph 2 of subsection (1).

ii. Sufficient information to permit the board’s supporters to understand generally the board’s reasons for the proposed use of proceeds, but excluding information that, in the opinion of the board, would prejudice the board’s position in negotiations for the proposed acquisition.

iii. Sufficient information to permit the board’s supporters to understand generally the board’s plans respecting use of the proceeds, but excluding information that, in the opinion of the board, would prejudice the board’s position in negotiations for the proposed acquisition.

iv. Notice of the time and place of a meeting of the board’s supporters at which the board’s proposal will be discussed.

v. Notice that the board’s supporters will be given the opportunity to make representations at the meeting.

2. The board must hold the meeting referred to in subparagraph iv of paragraph 1 on a day that is at least 21 days after the requirements of paragraph 1 have been met and must provide the opportunity to make representations referred to in subparagraph v of paragraph 1.

3. Within the period that begins three months after the meeting referred to in subparagraph iv of paragraph 1 and ends one year after that meeting, the board must pass a resolution that,

i. is consistent with the notices and information provided under paragraph 1, and

ii. directs the application of the proceeds referred to in subsection (1) for the purpose described in paragraph 2 of subsection (1).  O. Reg. 365/10, s. 2; O. Reg. 27/16, s. 5 (7-9).

Insurance for employees

6.3 A board shall use any amount refunded to the board by insurers or associations in respect of payments made by the board under clause 177 (1) (b) of the Act only for the purpose of providing insurance or services under subsection 177 (1) of the Act.  O. Reg. 270/12, s. 1.

Deferred revenue

7. Unless otherwise specified in a regulation made under the Act, a requirement under this Regulation to use an amount for a particular purpose shall not be interpreted as requiring a board to use that amount in the fiscal year for which the amount was provided or in which the amount was received.  O. Reg. 193/10, s. 7; O. Reg. 157/11, s. 8.

Revenue from other sources, reserve funds

8. (1) Any revenue from other sources received by the board that is used by the board for a purpose set out in this Regulation is in addition to the amount that the board is required by this Regulation to use for that purpose.  O. Reg. 193/10, s. 8 (1).

(2) Any amount that was held in a reserve fund of the board on August 31, 2010 for a purpose set out in this Regulation, and that is deemed to be an amount restricted for the same purpose under subsection 233.2 (1) of the Act, is in addition to the amount that the board is required by this Regulation to use for that purpose.  O. Reg. 193/10, s. 8 (2).

9. Omitted (provides for coming into force of provisions of this Regulation).  O. Reg. 193/10, s. 9.

 

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