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Briefing Session onBriefing Session on

Application for School Fee RevisionApplication for School Fee Revision

for the 2012/13 school yearfor the 2012/13 school year

by DSS Schoolsby DSS Schools

Parent consultation and fee increase %

SAS 1 SectionSAS Division, EDB23 March 2012

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Background (1)

School fee is a source of income to provide additional facilities and support services for students (e.g. employing more teachers, reducing class size and improving school environment) in DSS schools.

School fees collected can enable DSS schools to attain high educational standard and have sound financial situation.

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Background (2)

Proposed school fees should be reasonable and acceptable.

Various factors taken into consideration by REO colleagues during assessing school fee increase applications: schools’ genuine need schools’ actual income and expenditures schools’ budget schools’ financial situation parents’ affordability parent consultation

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Overview (2012/13 Fee Revision Exercise)

No new requirement is introduced

2 templates, 1 Income & Expenditure Statement (applicable to a few school) and 1 example are added to the appendices/schedules file to facilitate schools’ preparation of budgets/fee revision applications as follows: Chinese templates of “Essential Information to be included in the

Financial Situation of the School” (Appendix 3) & “Parent Consultation Acknowledgement Slip” (Appendix 4)

Income & Expenditure Statement template for Boarding Facilities (Appendix 6)

Examples for setting the school fees for non-local students (Appendix 7)

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Parent Consultation (1)

Schools intending to apply for fee increase :

(a) of more than 8%; or

(b) with total accumulated operating reserve as at

31.8.2011 exceeding the annual operating

expenses of the 2010/11 school year (as reflected in

the 2010/11 audited accounts)

are required to properly consult all parents and seek consent from the majority of them.

* For new applicants for P1 & S1 classes and S4 classes (for SSS with S4 or above levels only), to inform and explain to the parents concerned

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Parent Consultation (2)

Schools are required to:

a) issue to parents a printed letter/circular which contains the essential information on school’s financial situation; and

b) collect acknowledgement slips (sample at Appendix 4) from parents; and

c) consolidate parents’ views and address their concern (required

to report in P.2 of Schedule 1)

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Parent Consultation (3) Essential information on school’s financial situation should

include:1. breakdown of financial implications by items of services/facilities2. total additional funds needed for all the items3. estimated deficit if school fee kept unchanged4. estimated deficit/surplus after proposed fee increase5. total operating reserve (in terms of no. of months of annual

expenses as of 2010/11 Audited Accounts)

Acknowledge Slip – should provide space for parents’ views/concern (if any)

* For consultation with Parent Teacher Association (PTA), essential information on school’s financial situation should also be provided

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Financial Situation of the

School (1)(Eng. template)

Appendix 3

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Financial Situation of the

School (2)(Chi. template)

Appendix 3

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Example of Financial

Information for Parent

Consultation(School X)

xxx

xxx

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xxx

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xxx

xxx

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xxx

xxxxxxxxx

xxx

xxx

xxx

xxx

xxx

xxxxxxxxx

xxxxxxxxxxxxxxx

xxx

xxxxxxxxx

xxx

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Reporting of Parent

Consultation (Schedule 1, P.2)

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Example ofReporting of

Parent Consultation (Schedule 1, P.2)

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at the entry level (i.e. P1, S1, and S4 for SSS with S4 or above levels only) the % of change is compared to the school fee of the

same level of the previous school year (i.e. 2011/12).

>8% at one/more level(s) school is required to conduct full parent consultation

at affected levels [e.g. with fee increase >8% at S3, required to consult S1 & S2 students of the current school year (i.e. 2011/12)]

% of Fee Increase (1)

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% of fee increase (2) (School fee of lower form is lower)

Calculation of fee increase % : Scenario 1 – if prior written notification has been given to parents

that the existing S3 school fee level will be charged (i.e. $16,000) when their children proceed to the class level but afterwards fee revision is proposed, then % increase = (17,000-16,000)/16,000 = 6.25%

Scenario 2 - if parents have not been notified in writing that the

existing S3 school fee level will be charged when their children proceed to the class level, then % increase = (17,000-15,000)/15,000 = 13%

Class Level School Fee

for 2011/12 s.y.

Proposed School Fee

for 2012/13 s.y.

S2 $15,000 $16,000

S3 $16,000 $17,000

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% of fee increase (3)(School fee of lower form is higher)

Calculation of fee increase % : Scenario 1 – if prior written notification has been given to parents

that the same school fee level of the preceding class level (i.e. $18,000) will be charged when their children proceed to the next higher class level but afterwards fee increase is proposed, then % increase = (19,000-18,000)/18,000 = 5.6%

Scenario 2 - if parents have not been notified in writing that the

same school fee level of the preceding class level will be charged when their children proceed to the next higher class level, then % increase = (19,000-16,000)/16,000 = 18.75%

Class Level School Fee

for 2011/12 s.y.

Proposed School Fee

for 2012/13 s.y.

S2 $18,000 $19,000

S3 $16,000 $19,000

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Thank You !Thank You !