Presentation on theme: "Presentation to Board June 16, 2009 Presented by: John A. Sabo, Associate Director – Leading Services & Treasurer of the Board Susan La Rosa – Director."— Presentation transcript:
Presentation to Board June 16, 2009 Presented by: John A. Sabo, Associate Director – Leading Services & Treasurer of the Board Susan La Rosa – Director of Education & Secretary of the Board BUDGET York Catholic District School Board APPROVAL OF THE FINANCIAL ESTIMATES
Objectives re: June 16, 2009 meeting 1.Review final draft of the revenue and expenditure projections for the Operating Budget, and identify changes made from previous budget modules/information presented, as well as any new assumptions; 2.Present to the Board the motions required for the approval and implementation of the Financial Estimates, along with related/enabling motions. 3.Allow for discussion on the follow-up required for the implementation and completion of the “allocation of resources balancing process” and for preparation of the development of the and future Operating Budget
Budget Projections Total Operating & Non-Operating Total Operating Revenue$ 524,490,212$ 479,066,293 Expenditures$ 524,490,212479,066,293 Difference00 NOTE: For the Financial Estimate Projections, the revenue and expenditures have “excluded” provision for the use of reserves. Recommendation “B” provides proposed treatment for
Agenda Report to Board June 16, 2009 REPORT TO TRUSTEES: APPROVAL OF FINANCIAL ESTIMATES (dated June 12, 2009, 6 pages) AttachmentsTitle 1Summary of Projections & Revised Estimates 2Revenue Summary Comparison vs Revenue Summary – pie chart (Operating) 4Revenue Summary – pie chart (Operating & Non Operating) 5Expenditure Summary Comparison vs Expenditure Summary – pie chart (Operating) 7Expenditure Summary – pie chart (Operating & Non Operating) 8Operating Fund Comparison of vs Summary of Recommendations re final approval of the Financial Estimates
Supplementary Budget Support Materials
A series of “Allocation of Resources” Design Team meetings have and will continue to be held May 5, 2009 presentation to Board Review of Projected Operating revenues Distribution of Allocation of Resources Workbooks and support materials May 13, 2009 presentation of the Salaries and Benefits Module to Labour Relations May 26, 2009 Budget Update to Board Collection of major areas of expenditure data and finalization of expenditure adjustments Finalization of proposed revenue adjustments Development of proposed enabling recommendations BACKGROUND INFORMATION
“Concepts” Expenditure projections are based on total revenue allocation without use of reserves Expenditures have been separated into three distinct categories Salaries and Benefits ( 87.7%) Committed Expenditures ( 7.1%) All essential/contractual expenses e.g. utilities, transportation, maintenance contracts, phones, network lines legal/audit etc. “fixed” in nature over which there is little or no discretion. Other Expenditures (5.2%) All other expenditures BACKGROUND INFORMATION
Projections Operating Revenue$ 479,066,293 Expenditures: Salaries & Benefits (87.7%)$ 419,961,059 Committed (7.1%)33,849,638(453,810,697) Balance available to fund remaining Other Expenditures:25,255,596 Other Expenditures (5.2%)(25,255,596) Surplus/(Shortfall) FINANCIAL ESTIMATES – Summary Operating Revenue & Expenditures Projections
Major assumptions used in developing final budget projections : SALARIES & BENEFITS Implementation of Provincial Framework Agreement for (Note: 2 nd year of 4 year agreement) Salaries and Benefits are as presented to Labour Relations Committee on May 13, 2009 Benefits renewal premiums as recommended by Benefits consultant (Mercer) Detailed Salaries & Benefits Expenditure module (28 pages) provides details around related assumptions and staffing level projections for MAJOR ASSUMPTIONS
Major assumptions used in developing final budget projections : COMMITTED EXPENDITURES (non Salaries & Benefits) Committed expenditures are projected at levels as required OTHER EXPENDITURES All other budgets are at Revised Estimates levels reduced by the amount required to balance the budget (total targeted amount $ 1.4 million or approximately 5.3% of Revised Estimates) It is proposed that the Allocation of Resources Design Team work towards achieving the reductions that have been made (from Revised Estimates levels.) System targets (e.g. Printing budgets) Budget release holdbacks etc. MAJOR ASSUMPTIONS
Major assumptions used in developing final budget projections : RESERVES: No provision has been made for the transfer of reserve funds to balance the operating budget For it is proposed that a transfer of reserves only be used for those expenditures “excluded” from the operating expenditure projections due to their infrastructure or multi-year profile (e.g. Student Admin. System, telephony, disaster recovery) or of a “one-time” nature. Recommendation ‘B’ proposes drawdown of up to approximately $ 1.13 million MAJOR ASSUMPTIONS
Revised Estimates Projections Increase/(Decrease) $% Operating Revenue$ 461,051,449$ 479,066,293$ 18,014, % Operating Expenditures 464,442, ,066,293 14,623, % Surplus/(Shortfall)$ (3,391,041)0$ 3,391,041 Transfer from Reserves3,391,0410 Surplus/(Shortfall) FINANCIAL ESTIMATES – Summary Projected Operating Revenue & Expenditures NOTE: For the Financial Estimate Projections, the revenue and expenditures have “excluded” provision for the use of reserves. Recommendation “B” provides proposed treatment for
Revised Estimates Projections Increase/(Decrease) $% REVENUE- Operating Grants for Student Needs $ 451,265,313$ 469,486,798$ 18,221, Other Grants1,000, Other Revenue4, ,313,000(532,254)(10.99) Continuing Education3,940,7004,266,495325, $ 461,051,267$ 479,066,293$ 18,015, % PROJECTIONS
ANALYSIS OF GRANT CHANGE-Operating Revised Estimates vs Projections Total Increase$ 18,221, % Resulting from: (estimated) Enhancements (PFA & Other misc)$ 15,685, % Constraints(2,466,000)(0.55)% Net Funding increases (before growth)$ 13,219, % Growth increase5,002, % Total Increase$ 18,221, % Above chart is an extract from May 5, 2009 presentation to Board.
HIGHLIGHTS OF GRANT CHANGES (cont’d) CONSTRAINT MEASURES $ 2.46 million decrease Pupil Foundation Grant Textbooks funding reduced $ 700,000 Classroom computers funding reduced $ 700,000 Staff Development funding eliminated $ 600,000 Student Transportation – 1% route reductions targeted $ 166,000 Special Education and Learning Opportunities (staff development component) $ 300,000
Revised Estimates Projections Increase/(Decrease) $% EXPENDITURES-categorized as Committed (essential/contractual etc.) IT-Line Chges/Sftwr$ 1,089,117$ 1,094,525$ 5, Bus Adm Telephone372,259387,50015, Transportation-Fuel945,000820,653(124,347)(13.16) Accom. Energy10,196,52610,018,176(178,350)(1.75) Bus Adm Legal/Aud288,250251,750(36,500)(12.66) Information Sys1,522,0782,097,729575, Transportation14,619,30414,457,625(161,679)(1.11) Insurance1,247,3521,381,563134, Snow/Lawn/Garbage1,382,5821,916,936534, Accom. Other1,305,9721,423,181117, $ 32,968,440$ 33,849,638$ 1,853, PROJECTIONS
Revised Estimates Targeted Reductions Projections Other Expenditures Staff Development2,716,806(327,727)2,389,079 Supplies & Services17,919,825(707,913)17,211,912 Capital Expenditures3,823,916(180,552)3,643,364 Fees & Services1,756,766(154,250)1,602,516 Other Expenditures440,277(31,552)408,725 $ 26,657,590$ (1,401,994)$ 25,255, PROJECTIONS Targeted reductions methodology utilized above is included as part of the supplementary information provided. The Allocation of Resources Design Team will have the opportunity to review where and how the reductions are applied upon Budget release and implementation.
Budget Projections TOTAL Operating$ 479,066,293 Non-Operating45,423,919 TOTAL$ 524,490,212 Notes: The Difference of $ million between Total Operating & Non-Operating vs. Operating Only is the funding received for non-operating expenditure functions (i.e.): School Renewal $ 5.63 million New Pupil Places $ 26.16million Primary Class Size Capital $ 2.36 million Good Places to Learn allocation $ 1.37million Pre-98 Debt $ 9.43 million Best Start/Growth Schools $.47million
Budget Projections Recommendation A(i) reflects proposed approval of above amount of $ 524,490,212
Grants for Student Needs$ 469,486, % Other Grants1,000,000.20% Other Revenue4,313,000.90% Continuing Education4,266,495.90% $ 479,066, % Operating Revenue Projections
Grants for Student Needs$ 469,486, % Other Grants1,000,000.19% Other Revenue4,313,000.82% Continuing Education4,266,495.81% Non-Operating45,426, % $ 524,490, % Operating & Non-Operating Revenue Projections
PROJECTED Reserve Status at August 31, 2009 OPERATING RESERVES August 31, 2008 Balance Projected Transfer August 31, 2009 Projected Balance Protected1,795,268 Non-protected4,523,5663,391,1321,132,434 6,318,8343,391,1322,927,702 NOTE: The Projected transfer is based on Revised Estimates. Actual transfer will be subject to August 31, 2009 financial statement reconciliation process.
Proposed Recommendations The series of proposed recommendations (along with background information and rationale for each) related to the approval of the Financial Estimates are included on Attachment #8. They are organized into six groupings of motions as follows: A. Approval & Submission of Financial Estimates i.Revenue ii.Salaries & Benefit Expenditures iii.Other Expenditures B. Use of Unprotected Reserves for C. Use of Operating Budget Surplus for EDC Purposes – Policy 610 D. Monitoring and Allocation of Financial Estimates i.Audit Committee ii.Allocation of Resources Design Team E. Submission of Revised Estimates F. Lobby Efforts Re: Fair and Equitable Funding
A. APPROVAL AND SUBMISSION OF FINANCIAL ESTIMATES
B. USE OF UNPROTECTED RESERVES FOR RECOMMENDATION: THAT the Board approve the provision of $1,132,434 of transfer of reserves plus an equal offsetting amount of expenditure provision as part of the submission of the Financial Estimates to the Ministry of Education for the fiscal year September 1, 2009 to August 31, 2010.
C. USE OF OPERATING BUDGET SURPLUS FOR EDC PURPOSES RECOMMENDATION: THAT the Board not designate Operating Budget funds for the purpose of acquisition of school sites.
D. MONITORING AND ALLOCATION OF FINANCIAL ESTIMATES RECOMMENDATIONS: Audit Committee: THAT Administration continue to report to the Board through the Audit Committee a summary of budget account transfers as well as any significant changes in budget assumptions and their projected impact on the Operating Budget estimates and Revised Estimates. Allocation of Resources Design Team: THAT Administration regularly report on the activities of strategies developed by the Allocation of Resources Design Team for review and approval by the Board, with the objective of leveraging financial resources and ensuring compliance with Ministry regulations.
E. SUBMISSION OF REVISED ESTIMATES RECOMMENDATIONS: THAT Administration develop and submit revised Estimates to the Ministry of Education prior to December 15, 2009, and that a summary of the material changes between original and revised estimates be reviewed at the Audit Committee, and THAT, should the calculation of Revised Estimates result in material changes to revenue or expenditure projections, Administration be directed to develop options and strategies for the Board to consider for implementation in the fiscal year.
F. LOBBYING OF GOVERNMENT i)THAT the Board continue to lobby the government to ensure equitable and adequate funding is available for all students in Ontario, and ii)THAT Administration be directed and authorized to lobby on behalf of the Board for changes in the new funding model where, in the opinion of administration, the principles of equity and adequacy are not being met. iii)THAT the Board in cooperation with the Ontario Catholic School Trustees Association undertake a review of data regarding school board budgets with the objective of developing a coordinated approach with the Ministry of Education for addressing the short and long term financial needs of school boards. RECOMMENDATIONS:
NOTE: As previously reported, expenditures must be categorized according to Ministry- defined envelopes. Based on preliminary categorization of expenditures included in the final projection, the (as well as projected ) Administration and Governance envelope will be “exceeded”, but will be less than the Ministry-maximum threshold of 15%. No Deficit (Balanced Budget) Compliance with Funding “Envelopes” Special Education Pupil Accommodation Administration and Governance see note COMPLIANCE REPORTING
Summary/Conclusion As noted at past Board meetings, the development of budget information has been focused on capturing accurate data and providing accurate expenditure and revenue projections based on assumptions identified. Various individuals have been involved in the developing and coordinating of budgetary information. Unless identified in this report, all assumptions, issues and concerns presented at the previous meetings remain
NEXT STEPS The next steps following review of final draft projections and approval of the proposed recommendations are as follows: 1.Complete and submit Estimates to Ministry of Education in prescribed format and code of account groupings prior to the required Ministry deadline of June 30, Prepare for implementation of the Operating Budget effective for September 1, 2009, including continuation of budgetary restraints and strategies utilized in Prepare for the scheduling of a series of Allocation of Resource Design Team meetings to facilitate implementation of Recommendation “D”. 4.Prepare and complete Revised Estimates for submission to the Ministry of Education prior to December 15, Continue lobby efforts directly and through OCSTA to ensure the short and long term financial stability of the Board.
KEEPING THE BALANCE and LEVERAGED USE OF RESOURCES FISCAL STUDENT RESPONSIBILITY vs. OUTCOMES THE CHALLENGE