Business Committee Meeting - 12 Sep 2018

THE BOARD OF EDUCATION OF SCHOOL DISTRICT 68

BUSINESS COMMITTEE MEETING

TO BE HELD WEDNESDAY, SEPTEMBER 12, 2018 – 6:00 PM

BOARD ROOM

A G E N D A . CALL TO ORDER

The Chair will call the meeting to order and recognizes that tonight’s meeting is being held on the traditional territory of the Snuneymuxw people.

2. ADDITIONS TO THE AGENDA

3. DELETIONS TO THE AGENDA

4. CHANGE IN ORDER

5. APPROVAL OF THE AGENDA

6. APPROVAL OF THE MINUTES

6.1 Minutes - June 13, 2018

That the minutes from the Business Committee meeting held June 13, 2018, be approved.

09 - Jun 13 2018

3 - 5

7. PRESENTATIONS

8. SENIOR STAFF REPORTS

8.1 Director of Planning and Operations Sabo

• Hammond Bay Expansion/Gym Update

• Frank J Ney Expansion Update

• Summary of Summer Work Completed Director of Planning and Operations Presentation

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8.2 Secretary-Treasurer McVeigh

• VAST Satellite

• SCC Update

• Independent Review Panel report out re K-12 Public Education Sector Funding Model Review Process

• Trustee Remuneration Annual CPI Adjustment

• Trustee Information Night

• New Trustee Orientation

• Inaugural Annual Meeting Policy Change Independent Review Panel Report Out

Trustee Remuneration

Inaugural Annual Meeting Policy Change

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Please note that the proceedings of this meeting are being recorded to assist in the preparation of the minutes of the meeting. The recording of this meeting are records of the School District, as defined in the Freedom

of Information and Protection of Privacy Act, and as such may be the subject of access requests under the Act.

Page 8.3 Superintendent Saywell

Re: Staffing/Enrolment Update

9. CORRESPONDENCE REFERRED FROM REGULAR BOARD MEETING

10. UNFINISHED BUSINESS

10.1 Secretary-Treasurer McVeigh

• Operating Surplus/Deficit Policy

• Restricted Items from Surplus 2017/2018

AS - Surplus Policy

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11. NEW BUSINESS

12. FOR INFORMATION

13. QUESTION PERIOD Question Period is intended to enable the public to obtain clarifying information regarding a current agenda item.

Individuals wishing to ask questions of the Board upon completion of Committee and Board sessions shall do so in writing on the form provided which includes their name, street address and email address. The individual will be asked to verify his/her self and be afforded the opportunity to read out their own question. Each individual shall be limited to one follow-up question upon receiving a response. Questions and responses will be included in the video of the meeting and the meeting minutes and will be part of the public record.

Forms are available in the information rack near the entrance of the Board Room

14. ADJOURNMENT

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THE BOARD OF EDUCATION OF SCHOOL DISTRICT 68

MINUTES OF BUSINESS COMMITTEE MEETING

HELD JUNE 13, 2018

PRESENT:

Trustees

S. Kimler, Chair

J. Solomon, Vice-Chair

N. Bob

J. Brennan

T. Brzovic

S. Higginson

S. Rae

B. Robinson

N. Routley

ABSENT:

N/A

Staff

J. Blain, Superintendent/CEO

C. McVeigh, Secretary-Treasurer

S. Saywell, Superintendent Designate

T. Davie, Deputy Superintendent

P. Trick, Chief Consultant, Workforce, Planning & Development

B. Esliger, Assistant Superintendent

R. Gray, Assistant Superintendent

L. Tait, Assistant Superintendent

D. Burgos, Executive Director of Communications

K. Matthews, Senior Executive Assistant

IN ATTENDANCE

D. Wood, NDTA Rep

S. Fielden, CUPE Rep

G. Steel, NSAA Rep

Meeting No. B09

CALL TO ORDER The Chair called the meeting to order at 6:02 pm and recognized that tonight’s meeting is being held on the traditional territory of the Snuneymuxw people.

ADDITIONS TO THE AGENDA There were none.

DELETIONS TO THE AGENDA There were none.

CHANGE IN ORDER There were none.

APPROVAL OF THE AGENDA

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Minutes of the Business Committee Meeting held June 13, 2018

Folio

BC18/06/13-01

That the Agenda be approved.

CARRIED UNANIMOUSLY

APPROVAL OF THE MINUTES

Minutes - May 9, 2018

IT WAS MOVED BY Trustee IT WAS SECONDED BY Trustee

Folio

BC18/06/13-02

That the minutes from the Business Committee meeting held May 9, 2018, be approved.

CARRIED UNANIMOUSLY

PRESENTATIONS There were none.

SENIOR STAFF REPORTS

Assistant Superintendents Gray and Tait

Re: Secondary Learning Inquiry Showcase and NLPS Showcase of Learning

Instruction and Assessment Coordinator Amanda Kiatipis presented the district's Showcase of Learning. Instruction and Assessment Coordinator Kim Darbyshire presented the Secondary Learning Inquiry Showcase. Both presentations are attached to the Agenda.

Secretary-Treasurer McVeigh

Re: 2018/2019 Operating Budget

IT WAS MOVED BY Trustee Rae IT WAS SECONDED BY Trustee Higginson

Folio

BC18/06/13-03

The Business Committee recommends that the Board of Education of School District No. 68 (Nanaimo-Ladysmith), at the next scheduled Board meeting (prior to June 30, 2018):

a. conduct all three readings of the 2018 / 2019 annual budget bylaw in one meeting, and

b. pass and adopt the 2018 / 2019 annual budget and annual budget bylaw.

Opposed by Trustees Brennan, Brzovic, Routley

CARRIED

IT WAS MOVED BY Trustee Brennan IT WAS SECONDED BY Trustee Brzovic

Folio

BC18/06/13-04

That the Board of Education of School District No. 68 (Nanaimo-Ladysmith) eliminate the position of Deputy Superintendent and all associated costs.

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Minutes of the Business Committee Meeting held June 13, 2018

Opposed by Trustees: Kimler, Solomon, Bob, Higginson, Rae, Robinson

DEFEATED

CORRESPONDENCE REFERRED FROM REGULAR BOARD MEETING

There were none.

UNFINISHED BUSINESS

Superintendent Blain

Re: Former Trustee Recognition

IT WAS MOVED BY Trustee Brennan IT WAS SECONDED BY Trustee Brzovic

Folio

BC18/06/13-05

The Business Committee refer this matter to the next Education Committee meeting in September 2018.

CARRIED UNANIMOUSLY

Trustees reviewed and provided feedback to the suggested criteria for Former Trustee Recognition.

NEW BUSINESS There was none.

FOR INFORMATION

QUESTION PERIOD There were none.

ADJOURNMENT

IT WAS MOVED BY Trustee Rae IT WAS SECONDED BY Trustee Routley

Folio

BC18/06/13-06

CARRIED UNANIMOUSLY

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Facilities Department

Pete SaboDirector of Planning

and Operations

September 12, 2018

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Facilities Rentals

• New software (PerfectMind) in place in July

• Enhanced user interface for on line services– Viewing, booking, payments, etc.

• Working out bugs

• Addressing individual and departmental concerns

– Nanaimo Ladysmith Public Schools has launched a new facility booking program. With the new program you will be able to set up and manage your account, do online bookings and make payments. The new software, powered by PerfectMind, streamlines services and provides intuitive and user-friendly online facility bookings. We appreciate your patience while we transition to the new and improved booking site. Patrons can expect some downtime during this process. If you have any questions or concerns, or issues with your online login, please contact us at [email protected] or call 250-741-5241 or 250-741-5244.

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mailto:[email protected]

Maintenance (Brian Hackwood)

Office of the Manager:

• Budget administration• Woodlands re-opening• Project coordination

– Resource charting– Supplemental hiring– Temp Trades hiring

• Augmentation contracts• W/O administration

Advanced the PM initiative• Regular Preventative Maintenance is now being entered into ‘SchoolDude’ module

• Approx. 1200 PM’s have been generated with 500 outstanding

• Indicates where resources vary from maintenance/regulatory requirements

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Maintenance (Brian Hackwood)

Summer Maintenance• Fire alarm certification• Fire Sprinkler certification• Gym inspections• Locker inspections• w/o completion• Top dressing• Fertilizer applications• Sports field maintenance (mowing, irrigation etc)• Non sports field maintenance (Trim Crew)• Playground inspections• Curb Paint• Hard surface paint (game lines etc.)• HVAC Maintenance

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Transportation – Cartage (David Prevost):

• School and project support– School reorganization – Support for Closure of Rutherford

• Relocation of equipment to receiving schools

– 6 temps most of summer

• Portable relocation support

• Program moves support– CTC to Dufferin– SST/ELL offices to Dufferin– Strong start relocation in McGirr– DAC office shifts and changes

• Keeping up with general cartage request

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Summer Transportation(David Prevost):

• Transportation Office– Finalized 2018/19 bus routes

• Implementing adjustments arising out of annual route review• Implement new bus route to FJN

– Assisted families to register students– 18/19 Vehicle replacement program planning

• Mechanical Shop– Bus servicing– Grounds equipment repair– Bus repairs– Bus inspections– Clean the interior of all busses– Clean the exterior of all busses

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Operations (Diane Bunnah)

• Supported Activities– Summer clean up at each school to support construction activities– Support for capital activities (e.g. Hammond Bay Gym/HVAC Phase 2/FJN)– Focus on new rooms and new portables at each sites– Emergency Services for transient behaviour– Serviced 7 daycares for 7 weeks over the summer– Serviced summer rentals– Assessed requirement to work labour day weekend (6 staff)

• Regular activities:– Summer clean all schools:

• Window cleaning inside and out• Floors - machine scrub and wax• Furniture cleaned• High dusting

– Refinished all gym floors– Performed HVAC filter replacement– Wax new AFG flooring installations– Pressure washed select portable exteriors– Gym high dusting – various schools– Shampoo Carpet

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Custodial Team Model• Continue to support and develop the model• Published an updated custodial manual

Inspection reports• Yearly report from outside consultant is done at three selected schools• Assists with benchmarking custodial service• Considered results in 18/19 adjustments to cleaning assignments

Organics and recycling program• All schools equipped and to start the full program for Sept 4th.

– Staff/students to bring all recycling and organics to the stations – Caretakers will be empty the containers at the stations.

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Budget Initiatives to support schools• Replaced & repaired stage drapery at Dover Bay Drama/MPR • Blinds replacement in rooms in 7 Schools• All school have ‘chariot’ auto scrubbers for cleaning of

hallways and gym

Prod Workshop - July 6th

• Bullying and Harassment training• Refresher course on WHMIS, Blood Bourne Pathogen cleanup• Reviewed updated Caretakers Manual• Training for Auto Scrubber implementation• On going training - communication and team building

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Energy Management (Rob Lumsden)

Rob Lumsden, acting Energy Manager (July 16th)

18/19 Lighting program approved• DAC and 11 schools will see fluorescent lighting replaced with

LED tubes/fixtures• LED exterior lights will be installed at DAC and Facilities.

Presented Q1 Energy Management report to BC Hydro

The Energy Cup and Energy Wise Network will continue this year

• 168 sweater days, 24 high wattage heaters replaced, emphasis on self seeding advocacy, etc.

• Special focus on water usage and conservation programs

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Facilities Planning (Mike Ross)

• CEP/SEP/CEF/PEP/LC/Space projects

• AFG planning/implementation/augmentation

• School initiated/funded project(s)

• School initiated room use changes

• Accessibility Project planning

• Facilities condition Index

• Playground Planning

• Space use

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AFG (annual facilities grant +/- 2.9M)

18/19 • Non urgent projects delayed to accommodate

classroom preparations

• Ongoing consideration for emergent issues

• Ongoing consideration for classroom space priorities

• Ongoing consideration for school initiated/funded projects

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18/19 - Implementation• Exterior Paint – Fairview complete• Paint Prep (Fairview, LSS) complete• Exterior Paint (LSS) – Sept• CSS Weight Room – Oct• Island Connect ED – Alterations to Rooms 1022, 103, 105, 106 & 118 -

Sept• NDSS Ceramics – Sept• Woodlands (VAST Satellite)- Lead in Water remediated• Data cabling for wireless program - ongoing• Coal Tyee - Kindergarten Suite Counter/Cabinet Replacement - complete• Roofing – Seaview Roof 8, Park Ave. Roofs 8A, 8b, 8C, 8D, DAC Canopies

(3), John Barsby Roof 17, Departure Bay Roof 9, approx.. 130m gutter Dover Bay - complete

• Flooring - Cedar Secondary, Pauline Haarer, Mountain View, Hammond Bay, Seaview, DAC, Forest Park – complete

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18/19 – Planning work for project implementation

• Computer Lab conversion initiative - Chase River , Georgia Ave, Mt. View• Park Ave. - Building Envelope Upgrade (Gym Wall) • Randerson Ridge - Playfield Drainage Study• Priority VP offices• Brechin covered playground enclosure• Georgia Ave. Playground• Ecole North Oyster Playground• Quarterway Playground• Brechin Playground• Priority (emerging) school funded projects• NLPS Accessibility• Gender neutral washroom signage• Youth Trades Capital Equipment Program yr2 • Master planning for portable additions• DAC - Building Envelope Upgrade (exterior windows)• MTV - Building Envelope Upgrade (exterior windows) • Resource/Contingency Planning

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September 2018 ‘space requirements’ project

• CTC relocation to Dufferin (4 offices)• DAC annex/ELL relocations to Dufferin (4 classrooms)• NDSS - renovated portable from LSS• Cinnabar - relocated portable from FJN• Georgia Avenue - alterations to portable on site• Computer lab conversions

– Uplands, Pleasant Valley, Ecole Pauline Haarer

• Classroom preparations at LSS, JBS and Fairview• Portable preparation at Dover Bay, NDSS and McGirr• Required equipment • VP offices - TBD

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Operating Projects of note:

• Blinds replacement program• LSS Totem Base (total completion in the fall)• School Equipment (major appliances) Replacement Program

– Walk-in freezer/cooler replacement (DBS, JBS)

• Digital Signs (install Fall 2018)– Cedar Secondary– Wellington – John Barsby

• 17/18 Vehicle replacement - complete• 18/19 Vehicle replacement planning - complete• District Composting program – complete• Refinished Seaview Floor - complete• CSS – Gym Floor refinish (loss claim) – complete

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CEF (classroom enhancement fund) Capital

• Additional $1M approved for 4 portables to complete 17/18 space requirements:

• Bayview – Week of September 10th• Rock City – On site• Ecole North Oyster – On site• Ecole Pauline Haarer – Week of September 17th

• Set up work proceeding as they arrive

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VAST Satellite at Woodlands

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18/19 - 5 year Capital Plan

Response Letter Received March 26th

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Addition Ecole Hammond Bay - PDR

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Hammond Bay Phase 2 HVAC• Combined with gym addition• Complete November 2018

Dust Extractors (Dover Bay and Wellington)• Awarded and work proceeding• Complete October 15 2018

Park Avenue – Phase 1 HVAC• Budget reduced to support other SEP projects• Currently under review• Scope to be reduced

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Georgia Avenue – (PEP) playground enhancement program

• Accessible and inclusive playground concepts• Funded $105,000 under PEP• District contribution• PAC contribution• Planning underway• Stakeholder input session(s) September• Completion before March 31, 2019

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Seismic (SRG3)

• Seismic and Health and Safety continue to be number one capital priority’s for Ministry

• Working with Ministry to reassess facilities– Funded approximately $188,000– 3 engineering firms reviewing 91 blocks

• portions of schools

• Prioritized NDSS and LIS to align with capital submissions– Both school (re)rated as H1 (subject to TRB review)– NDSS and LIS request to be moved to seismic section of capital plan– As primary driver is now seismic, not condition.

• Results for all blocks to Ministry late August• Ministry to consider information and determine response

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NDSS Community Field Bleachers

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Frank J Ney Elementary Expansion Project

2 Storey, 10 classrooms

Alterations to entry/exit w/ additional parking (18)

Substantial Completion July 2018

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To all who participated

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Addition to Frank J Ney

• Substantial completion – July 20, 2018

• Occupancy date – August 23, 2018

• Start up date – September 4, 2018

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Remaining works:• Project Deficiencies

• Additional works

– Classroom Fitments/Millwork

• Playground

– Playground to arrive Sept 24;

– Installation September/October

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– Budget - $6,716,852

• $4,600,000 Local Capital

• $1,916,852 restricted capital

• $125,000 Energy Initiative funding

• $75,000 AFG

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Questions?

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Addition to Ecole Hammond Bay Gym

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Budget for Gym - $1.5 Local capital

– Building permit obtained Sept 4.

– Forecast within budget

– Playground relocation to lower field

– Audio system upgrade

– Weather tight early October

– Scheduled completion November 2018

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• Questions/Discussion

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«.

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School Act

49 The term of office of a trustee elected at a general school election

(a) begins on the first Monday after November 1 following the election or when the person takes officein accordance with section 50(3), whichever is later, and

(b) ends immediately before the first Monday after November 1 in the year of the next general schoolelection or when at least 3 trustees elected at or appointed following that election have taken office,whichever is later.

[RSBC1996] CHAPTER412

Part 4 — School Trustees

Division 6 — Holding Office

General term of office

Oath of office

50 (1) A person elected or appointed as a trustee must make a prescribed oath of office, by oath orsolemn affirmation, within the following applicable time limit:

(a) in the case of a person elected by acclamation, within 50 days after the date set for general votingday had an election by voting been required;

(b) in the case of a person elected by voting, within 45 days after the declaration of the results of theelection;

(c) in the case of a person appointed to office, within 45 days after the effective date of theappointment.

(2) The oath must be made before a judge of the Court of Appeal, Supreme Court or ProvincialCourt, ajustice of the peace, a local government corporate officer or the secretary treasurer of a board, and theperson making the oath must obtain the completed oath or a certificate of it from the personadministering it.

(3) A person takes office as trustee

(a) at the time the term of office begins if, at this time, the person produces or has produced thecompleted oath or certificate to the secretary treasurer, or

(b) at any later time that the person produces the completed oath or certificate to the secretary

treasurer.

(4) A person taking office as a trustee may also make an oath of allegiance.

Resignation from office

51 (1) A trustee may resign from office by giving written notice to the secretary treasurer of the board.

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‘PkgI 5.?

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ceoe

Created: April 2018Edited: May 2018

ccumulated operating surplus re resents the extent to which operating revenues from allprevious years exceeds operating expenditures from all previous years. Conversely, whenoperating expenditures from all previous years exceeds operating revenues from all previousyears, an accumulated operating deficit results. When an accumulated deficit occurs, it means

future revenues must be used to pay for past expenditures. School Districts in BC are not

permitted to budget for or have an accumulated operating deficit.

Formatted: Font: +Body (Calibri), 16 pt

Formatted: Font: +Body (Calibri)

O eratin sur luses rovide the district with the abili to Ian and sustain sewi s v rtimeand to rovide one-time services that would not othenlvise be affordable within the current

bud e . l is also im ortant to reco nize that o eratin sur Iuses are one-time funds and cannot

be used to sustain a district's on oin o erations.

This olic sets outa minimum and maximumlevels of o eratin sur lus with the oal fhavinresources necessa to meet both lann dand un lanned Ii ations whiles endin as much ofthe districts resources as ossible on current ear's ro rams and services. Funds that are in

excess of the maximum sur lus levels will be earmarked tow rds sustainable and on oininitiatives that are all ned with the district's ke bud et riorities.

[ARIis rudent financial mana ement to set aside a minimum level ofindieatesto hel miti ate current and future risks facin the school district and to ensur

.l.

? ." I. H Lthe district does not 0 into an accumulated deficit osition.

accumulated operating

n accumulated o eratin surpluspromotes overall school district financial health by providing the flexibilityto absorb unexpectedfuture expenses and it reduces financial risk by providing fiscal insurance from such things as:unexpected one-time costs, reduced revenue, inflation and/or interest rate changes.

Commented [CM1]: Not Material.Greater clari?cation.



Formatted: Font: +Body (Ca|ibri)

The following terms used in this Policy are defined as follows:

"Accumulated Operating Surplus" means the accumulated excess of Operating revenues overOperating expenses from prior years.

"Accumulated Operating Deficit" means the accumulated excess of Operating expenses overOperating revenues from prior years.

’’AnnualOperating Deficit" is the amount by which a fiscal year’5 Operating expenses exceed thatsame fiscal yeaf s Operating revenues.

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C) To improve transparency and reporting of the accumulated surplus (or deficit) so that thespending of school district (public) money can be well understood, which -will Formatted: Font: +Body (Calibri)

to public trust in the district and school board. Fmma?ed, pom; +Body (ca?brg)


Commented [CM4]: Not Material. Reference to the AP asthe guide to operationallze the Policy.

Thi policy applies to all of the Board of Education and Staff

Formatted: Font: + Body(Calibri)




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I

an

and A roval

The Secreta Zfreasurerwill rovide the Board of Education witheriodic re orts with re ard to an chan es in the accumulated o eratin sur Ius de?cit.

The Secreta Treasurer will rovide the Board wit

Formatted: Font: +Body (Ca|ibri), ‘I6pt


Commented [CM6]: Clari?cation that periodic reporting

must be provided to the Board.

a report detailing the recommended Formatted: Font:+Body (calibri)

distribution of the operating surplus, including transfers to reserves, or deficit funding bySeptember 30”‘of each year for their approval.


0 Surplus levels are important in achieving educational goals by maintaining financial healthand stability;

0 Surplus balances need to be benchmarked with other school districts on an ongoing basisto gauge whether financial health is being maintained;

- Although accumulated surpluses and contingencies can be a source of cash for one-offspending, they cannot sustain on-going or recurring services;

- Surplus goals need to be consistent with and supportive of realistic long-term financialplans;

0 Surpluses not required to fund contingency balances, shall be distributed as outlined inthe "Priority Application for Operating Surp|uses" in the Operating Surplus / DeficitAdministrative Procedure.

0 Monitoring of budgets for any potential of an annual operating deficit must be regularand result in action to prevent a deficit. A deficit shall be funded as outlined in the"Priority Application for Operating Deficits" in the Operating Surplus / DeficitAdministrative Procedure.

0 Department staff will respect the nature of and manage a global budget by first offsettinghigher than expected spending in one area through savings in another.

References

b the Secreta Treasurer

o The School Act of BC,Regulations and MinisterialOrdersI Operating Surplus / De?cit Administrative Procedur Formatted:

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Created: April 2018Edited: May 2018Final Draft: September 12, 2018

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Created: April 2018Edited: May 2018Final Draft: September 12, 2018This policy applies to all of the Board of Education and Staff and is operationalized throughAdministrative Procedure #X Operating Surp|us/ Deficit.

The School District's objectives in terms of its accumulated operating surplus and operating

deficit are set out in this Operating Surplus / Deficit Policy and corresponding AdministrativeProcedure. By reaching a clear understanding of its operating surplus and deficit monitoring

objectives, and by continually measuring progress towards achieving those objectives, the SchoolDistrict can attain greater fiscal stability and better support students.

To discharge this responsibility, the Board endeavors to:

1) Maintain and replenish restricted and unrestricted portions of its accumulatedoperating surplus in the manner set out below. Restricted Surplus amounts will beestablished as Reserves established by the Board as outlined the correspondingAdministrative Procedure.a. Unrestricted Operating Surplus: An unrestricted surplus of .5% to 2% of the total

operating budget.

b. Restricted Operating Surplus (Earmarked Funding): Restricted operating surplusearmarked funding which may vary from year-to-year based on the carry-over

rules (Ministry or internal) from one year to the next (e.g. Aboriginal EducationFunding).

c. Restricted Operating Surplus: Restricted operating surplus of 1.2% to 2.5% of thatyear's total operating budget.

2) Monitor any potential for an operating deficit and respond by reducing expenses

and/orapplying Reserves where policy and procedure permit.

The following principles form the basis for this Policy:

0 Surplus levels are important in achieving educational goals by maintaining ?nancial health

and stability;

0 Surplus balances need to be benchmarked with other school districts on an ongoing basisto gauge whether financial health is being maintained;

0 Although accumulated surpluses and contingencies can be a source of cash for one-offspending, they cannot sustain on-going or recurring services;

0 Surplus goals need to be consistent with and supportive of realistic long-term financialplans;

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Created: April 2018Edited: May 2018Final Draft: September 12, 2018

Surpluses not required to fund contingency balances, shall be distributed as outlined inthe "Priority Application for Operating Surpluses” in the Operating Surplus / DeficitAdministrative Procedure.

0 Monitoring of budgets for any potential of an annual operating deficit must be regular

and result in action to prevent a deficit. A de?cit shall be funded as outlined in the"Priority Application for Operating Deficits" in the Operating Surplus / DeficitAdministrative Procedure.

0 Department staff will respect the nature of and manage a global budget by first offsettinghigher than expected spending in one area through savings in another

The Secretary Treasurer will provide the Board of Education with periodic reports with regard to

any changes in the accumulated operating surplus/deficit.

The Secretary Treasurer will provide the Board with a report detailing the recommendeddistribution of the operating surplus, including transfers to reserves, or deficit funding bySeptember 30”‘of each year for their approval.

The Board will approve through formal Board motion interfund transfers.

This policywill be reviewed annually by the Secretary Treasurer after the year end surplus ordeficit figures have been verified.

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D sag

FinalDraftzse tember 12 2018

5 ontin en Reserve 5 or Resenre s are funds taken from an AccumulatedO eratin Sur Ius that are established to

o miti ate the districta ainstunex ected increases in ex en and/or decrea esin revenues

- restricted due to constraints on how the funds are s ent0 support planning

”Unrestricted Operating Surplus" means the accumulated Operating surplus in the SchoolDistrict’5 Operating Fund that has not been designated for specific uses.

"Restricted Operating Surplus” means the accumulated Operating surplus in the School District'sOperating Fund that has been designated for specific uses.

Unique amongst organizations in the public sector, school districts are permitted to incur annualdeficits as long as they have sufficient accumulated operating surplus to cover the annual deficit.An accumulated operating surplus indicates that a school district has net resources that can beused to provide future services. It is achieved by spending less than the revenue it receives. TheBoard may approve restrictions on spending of the surplus. Boards of education are required by

legislation to prepare balanced annual operating budgets, which may include the use of anappropriation of prior years’ accumulated surplus.

ThisAdministrative Procedure will:

0 Ensure that stakeholders are aware of the Operating Surplus/Deficit Policy andAdministrative Procedure and understand what it means;

0 Provide general guidelines as to how much (i.e. percentage or dollar amount) could be

transferred to other funds;

0 Provide parameters for how much might be allocated from current year's resources to bespent in a future fiscal year;

0 Outline expected annual planning and reporting of the estimated surplus/deficit for theyear and the application of the Accumulated Operating Surplus Policy for that fiscal year.

The following categories of internally restricted operating surplus have been established for thepurposels) so identified:

Internally Restricted Operating Surplus

Created: April 2018

Commented [CM2]: Not Material.Consistent with Policy change.Not all Reserves are "Contingency" Reserves. Clearerdefinition.

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To support effective planning, there will be situations where monies will need to be carried over

to future years. These could be for categories such as:

0 Future years’ Operations/Budget (not beyond the next two fiscal years)

0 Schools and Department surplus/carry-forwards (not beyond the next two fiscalyears)

0 Operating projects in progress

0 Technology, utilities, equipment and Capital projects (includes amounts to be

transferred to Local Capital, but have not yet been identified for specificinitiatives)

0 Purchase order commitments

The amount of Accumulated Operating Surplus restricted for operations spanning future schoolyears at the end of a fiscal year should be a minimum of .5% and a maximum of 1.0% of actual

Operating Expenses of that ?scal year.

To support effective planning, there will be situations where senior management has anticipated

and identified unusual/non-recurring expenses anticipated to be spent in the upcoming fiscalyear that will not be funded by revenues of that year. These could be for categories such as:

0 Staffing, labour relations, employee benefits, severance

0 Implementation of new curriculum

The amount of Accumulated Operating Surplus restricted for an anticipated unusual expenses

identified at the end of a fiscal year should be a minimum of 0.5% and a maximum of 1.0% ofactual Operating Expenses of that fiscal year.

In recognition of some monies having constraints as to how they can be spent, funds may need

to be internally restricted at the end of the fiscal year. Funds with external restrictions are to beincluded in Special Purpose Funds, not covered under this Policy. These internal restrictions couldbe for categories such as:

- Contractual obligations (i.e. professional development)

0 Aboriginal education

I School Generated Funds (not externally restricted)

0 Education Plan

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Unrestricted Operating Surplus

0 Donator named funds (not restricted by the donor)

The amount of Accumulated Operating Surplus restricted for specific constraints on the funds atthe end of a fiscal year cannot be quantified as a range of minimum to maximum.

To support effective planning, there will be situations where contingency funds need to beavailable for unexpected increases in expenses and/ordecreases in revenues. Budgeted annualoperating expenses should be reflective of actual estimated costs or, where applicable,contractual expenditure requirements. The contingency reserve mitigates the riskof actual costsbeing greater than estimated. These could be for categories such as:

0 For majoremergent operating issues —theSchool District is exposed to major non-reoccu rring costs related to various emergency events or situations, e.g. inclementweather, forest fires, etc. These emergent situations cannot be anticipated andbudgeted for and it may not be feasible to absorb the cost ofsuch events in otherbudget areas in any given year.

0 For one-time and intermittent projects - the School District undertakes certainone-time and/or intermittent projects that are larger in terms of costs. If theseprojects were funded from annual per-pupil based Operating grants from theMinistry of Education,annual fluctuations in educational service levels may result;therefore, it is not financially prudent to fund these projects from block funding.

The amount of Accumulated Operating Surplus restricted for Emergency Events / Project

Contingency Reserves at the end of a fiscal year should be a minimum of 0.1% and a maximum

of .25% of actual Operating Expenses of that fiscal year.

For emergency capital asset replacement; that is capital assets already in existence that are in

immediate need of replacement or repair.

The amount of Accumulated Operating Surplus restricted for Emergency Capital Asset

Replacement Reserve at the end of a fiscal year should be a minimum of 0.1% and a maximum of.25% of actual Operating Expenses of that fiscal year.

TheSchool District needs to maintain Unrestricted Operating Surplus balances for working capital

purposes, i.e. to provide for operating expenditures before operating grants from the Ministry of

Education are received. Maintaining minimum working capital levels eliminates or reduces theneed to borrow externally and/orinternally for operations.

Emergency Capital Asset Replacement Reserve

Created: April 2018FinalDraft: Se tember 12 2018

Emergency Events / Project Contingency Reserve

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Operating Surplus / Deficit Procedure Statement

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0 Donator named funds (not restricted by the donor)

The amount of Accumulated Operating Surplus restricted for specific constraints on the funds at

the end of a fiscal year cannot be quantified as a range of minimum to maximum.

0 Education Plan

0 Operating projects in progress

0 Technology, utilities, equipment and Capital projects (includes amounts to betransferred to Local Capital, but have not yet been identified for specific

initiatives)

0 Purchase order commitments

The amount of Accumulated Operating Surplus restricted for operations spanning future schoolyears at the end of a fiscal year should be a minimum of .5% and a maximum of 1.0% of actualOperating Expenses of that fiscal year.

To support effective planning, there will be situations where senior management has anticipatedand identified unusual/non-recurring expenses anticipated to be spent in the upcoming fiscalyear that will not be funded by revenues of that year. These could be for categories such as:

0 Staffing, labour relations, employee benefits, severance

0 implementation of new curriculum

The amount of Accumulated Operating Surplus restricted for an anticipated unusual expenses

identified at the end of a fiscal year should be a minimum of 0.5% and a maximum of 1.0% ofactual Operating Expenses of that fiscal year.

In recognition of some monies having constraints as to how they can be spent, funds may needto be internally restricted at the end of the fiscal year. Funds with external restrictions are to be

included in Special Purpose Funds, not covered under this Policy. These internal restrictions couldbe for categories such as:

0 Contractual obligations (i.e. professional development)

0 Aboriginaleducation

0 School Generated Funds (not externally restricted)

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Emergency Events / Project Contingency Reserve

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Priority Application for Operating Deficits

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Business Committee Meeting - 12 Sep 2018

Documents

Transcript of Business Committee Meeting - 12 Sep 2018