Committee Reports

Tuesday, 2011 October 11 at 5:30 p.m.

Committee Room # 120

I. School Fund Balances Report

Secretary Treasurer Krowchuck

1. Annual “Flexible Budgets”

• Annual flex budgets include all funds allocated to schools via the VSB Operating Fund. This type of funding is based on but not limited to:
  • per student allocation;
  • additional allocations for furniture and equipment replacement;
  • field trip EOC;
  • library resources;
  • program support.

2. “School Generated Funds”

• School generated funds include funds obtained by the school through the following methods:
  • permissible school fees;
  • charitable donations;
  • fundraising.

3. Balance of Funds

• The Board has approved a policy that allows for annual flex budgets to be reduced for individual schools, should their school generated funds exceed guidelines.
  • 10% reduction if exceeds guidelines by 50% or greater
  • 20% reduction if exceeds guidelines by 100% or greater
  • 30% reduction if exceeds guidelines by 200% or greater
• As of August 31, 2011, no school within the jurisdiction of the Vancouver School board has exceeded the school fund balance penalty. Should the opposite be true, regulation will be enforced by the VSB Penalty Guideline (see Table 2:(
  • Table 2

	Enrolment	Guidelines
Elementary Schools
Small	0 – 400	Up to $25,000
Medium	401 – 550	$25,000 – $35,000
Large	551~	$35,000 – $45,000
Secondary Schools
Small	0 – 1,000	Up to $150,000
Medium	1,001 – 1,700	$150,000 – $250,000
Large	1701~	$250,000 – $300,000

II. Preliminary Enrolment and Budget

Secretary Treasurer Krowchuk

1. Enrolment Decline

• The projected student enrolment included a net increase of 440 students. However, the preliminary findings in September found that the actual numbers were 300 lower than predicted:
  • 460 student decline in the grades 1 – 12 range
  • 66 student increase in international student enrolment
  • 640 student decline within the ESL program

2. Funding Cuts and Supplemental Funding

• Due to the net decrease in student enrolment, funding has been cut back by $800,000. However, district has qualified for an enrolment decline supplement worth $800,000. In addition, a supplement of $600,000 has been made available to the Board. This puts the net revenue at a surplus of $600,000.

3. Projected Expenditures

• The decline in student enrolment has also led to a cutback in teacher employment. However, more funding has been allocated for a potential expansion to accommodate the special needs program. The projected cost of this measure is set at $600,000. Therefore, the NET BUDGET IMPACT can be considered close to zero; achieving a balanced budget.

III. New School Accounting Model (FAST)

Director of Finance Coughlan

1. Current Model

• The current school accounting model is centred around the One-Write Plus accounting system for the schools, and PeopleSoft for the district. Schools use the One-Write Plus accounting system for the both board-allocated funds and school-generated funds. Under the One-Write Plus accounting system, schools may choose to pay for items and receive reimbursement via Board allocated funds. When schools choose to purchase through the VSB, invoices are paid by the VSB and then charged to the school’s budget. The “two sets of books” approach inherent to this current model requires inefficient processes such as periodic reconciliation and reimbursement tasks.

2. Change and Objectives

• The new accounting model seeks to streamline and eventually replace the One-Write Plus Accounting System (no longer supported by vender), achieve more control over cash dispersement, and eliminate redundant procedures. Under the new system, only flex budget funds will be kept at the school board; accounted for by the school board and reported by the PeopleSoft program. Schools are able to exercise more control over school generated funds. As such, the need to keep “two sets of books” is eliminated.

3. Conversion and Costs

• Pilot programs have already been in place for 2 years in 4 elementary schools and 1 secondary school (Van Tech). Feedback has been consistently positive, citing only “growing pains” associated with the transition. Each conversion is estimated to span a 1-2 month period. The general steps for the transition to the new model are as follows:
  • Sales Tax Rebate claims training for all schools
  • Accounting process training and accounts for 6 groupings of schools (Annexes, Elem, Sec)
• The net cost associated with the implementation of this new model is close to zero. This is due in large part to the reduced need for accountants to spend time travelling to schools. This time can be spent training schools adopting this new module.

IV. POTENTIAL Additional Funding for Students with Special Needs

Secretary Treasure Krowchuck

1. Background and Requirements

• The Minister of Education has issued a statement with the BCTF concerning Bill 28 (Public Education Flexibility and Choice Act) on October 4, 2011. This included a proposal to establish a Class Organization Fund, which would include $165 million in additional funding over a 3-year period, as well as $75 million each subsequent year to help teachers with challenging class compositions. The resolution Memorandum of Agreement outlined the use of said funds in the following circumstances:
  • Where funding is used by districts to support classes with additional teaching staff;
  • Where funds will be provided to districts via targeted grants;
  • Where the ministry will consult with the BCTF regarding the method of fund allocation;
  • Where the District Superintendent will consult with the local union president regarding the plan for allocation.
• Although within consideration, the resolution Memorandum of Agreement has not yet been agreed upon by the Ministry, BCTF, or BCPSEA (British Columbia Public School Employers’ Association).

Next Meeting: Tuesday, 2011 November 8 at 5:30 p.m.

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Gary Xia
Committee V Rep.