29 October 2021

Dear One and All

BUDGET 2022

The past 20 months has seen the College walk an extraordinary journey which we could never have prepared for and which has stretched and challenged leadership, processes and teaching. It has grown our resilience, strength and compassion and pushed us into uncomfortable areas that have often become opportunities.

Budget 2022 was compiled by the Executive Committee and their leadership teams, incorporating the learnings, opportunities and challenges of the past 20 months. The Finance Committee has guided, influenced and challenged the Executive Committee throughout the budget process and the St Stithians College Council approved the 2022 Budget on 28 October 2021.

The COVID-19 effect remains prevalent and as a team, we were cognisant of the impact of our decisions on the College and all stakeholders now and into the future.

The key focus areas for 2022 are:

Long term sustainability of the College

The future advancement and sustainability of St Stithians College as per Strategy 2025 requires a strategic combination of marketing the present school; creating a community of belonging amongst staff, students, parents, alumni and past parents; and diversifying revenue and resources beyond annual school fees.

The College has launched the 75 by 75 Campaign which aims to grow the St Stithians College Endowment Fund to R75 million by 2028, and to grow the Thandulwazi Trust Fund to R75 million for our 75th birthday in that year. The funds will be used to implement our vision, fund capital requirements, research and innovation, and provide access for those who would not normally be able to attend the College. There are many ways that we are securing long term sustainability, including management of current expenses, optimisation of income and management of investments.

St Stithians College is not unique, in that there is effectively a ceiling of income that can be earned from our current offering, whilst operational requirements, to run the school, increase annually. This gap must be managed as part of our Financial Strategy. The generation of alternative revenue and growing of the Endowment Fund are key aspects in managing this gap, and optimising alternative revenue.

Wellbeing, appreciation and development of all staff employed by the College

All staff employed by the College are the main contributors to the success of the College, the students and Alumni. Our staff are imperative in delivering on the excellent education that Saints demands.

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Budget 2022 includes a substantial value for staff training and development, with emphasis on hybrid teaching for academic staff, transformation and diversity for all staff, and the opportunity to further individuals’ studies, ultimately enriching the skills and knowledge base of the College.

We are very pleased that we are able to offer staff who have met the performance standards, a cost of living increase in 2022 with no reduction in salaries. Notably, there is no increase in Headcount. We endeavour to ensure that our structures are efficient in delivery and cost.

Management of fees charged to parents

Some of our parents have journeyed with us for over a decade and for others, this will be their first year at Saints. Regardless of the number of years that you have journeyed with us, you are all valued and appreciated, and we could not function without you.

COVID-19 has had a lasting impact on the World, South Africa, Gauteng, our greater community, staff and our parents. We are acutely aware that it has brought financial strain to most individuals and businesses. Financial relief to parents of R 14 million was effected in 2020, and in the 2021 year the tuition fee increase was 0%.

The College agreed that the Tuition fee charged to parents should include all compulsory academic add-ons normally included in the fees booklet and that these should not be charged separately throughout the year. The Heads’ of Schools have ensured that this was implemented in 2021 and will continue in 2022.

In 2021, R 1.1 million of compulsory academic add-ons were incorporated into the Saints operating expenses with no increase in tuition fees. A further R 1.6 million compulsory academic add-ons have been incorporated into the 2022 operating expenses with no direct increase in tuition fees.

The fee increase for 2022 is 5% which will assist in covering the cost of living increase for staff and operational requirements of the College.

Critical analysis of Campus expenses and implementing cost saving initiatives

The operational requirements to run the school increase annually before introducing additional initiatives or strategies. Collectively, we need to tightly manage the Campus expenses, which include, but are not limited to, ICT, repairs and maintenance to grounds and buildings and utility costs. The project is being driven by the Head of Finance with the assistance of the Executive Committee.

Capital expenditure projects for 2022, are focused on enhancing the current infrastructure and sustainability of the College. The main capital expenses for 2022 are driven by the continued investment in our ICT infrastructure and resources.

Environmental sustainability

In the 2021 Budget letter, we informed parents that the capital expenditure focus was on the Water Security Project and the Solar Plant. We are pleased to report that the Water Security Project will be completed by December 2021 and from January 2022 onwards, we will to an even larger extent contribute to the sustainability of the Planet. The project cost is R 6 million with a payback period of less than two years.

The College’s financial stance on the Solar Plant changed during 2021, moving from an outright purchase, to a Power Purchase agreement. As such, the tender has been circulated and the estimated date of project completion is December 2022.

Both projects incorporate an educational facility during building and upon completion, which will be included in the appropriate subject and school curriculum.

In 2022, the College will be investigating more energy efficient means of lighting our Campus.

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Annual registration of student enrolment

St Stithians requires the enrolment of each student annually through the secure Portal on the St Stithians website. The secure Portal will be open for 2022 registrations from 3 November 2021. The Finance Department will circulate an email to all existing and new parents and guardians with step-by-step information regarding annual re-enrolment on the secure Portal. The final closing date for 2022 registration is 30 November 2021.

New parents will be informed about the enrolment registration process at the relevant welcome events.

The College Budget process takes place over several months and involves many stakeholders, including volunteers through various committees. We extend our sincere gratitude to all members of the Finance Committee and Council who give of their time, skills and knowledge. Thank you for assisting us with Budget 2022 and developing projects which the Executive Committee will deliver on, in the coming months.

Parents and guardians, thank you for your continued support and encouragement.

May 2022 be a year of great inspiration, health and blessings.

Yours Sincerely

Celeste Gilardi Claire Watson Ntombi Langa-Royds

RECTOR HEAD OF FINANCE COUNCIL CHAIR (INCOMING)

Lorna Kirk Megan Rogers Carel Nolte

FINANCE COMMITTEE CHAIR DEPUTY CHAIR OF COUNCIL COUNCIL CHAIR (OUTGOING)