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Strike and job action savings In SY2011/12 VBE realized job action savings and in SY2013/14 MEd allowed the school district to keep 20% of the savings related to the teacher's strike in SY2013/14. Included in these differences are also the unspent amounts/ending balances of the Internally Appropriated Expenses, discussed below. Finding 4.1: The difference between the Board’s final budget forecasted deficit as reflected in the Amended Budget and the actual surplus realized is unreasonably high. This difference has increased over the years from $8.8M in SY2010/11 to $18.3M in SY2013/14 Recommendation 4.1 The Board critically review the Amended Budget prior to approval to ensure accuracy of the forecasting, and particularly to account for the deferment of expenses to the next school year prior to the finalization of the Amended Budget 4.4.1 Recent announcement In May 2015, the Board approved the VBE borrowing $1.6M from the Bank of Montreal to fund a new school at the International Village in Vancouver. Given the history of actual results exceeding budget, it is expected that SY2014/15 will achieve positive variances against its budgeted operating expenses and therefore the surplus could exceed the current forecast budget of $7.7M (see section 3.4.1.4). This incremental operating surplus would be an alternative to the Bank of Montreal financing and/or allow for the accelerated retirement of this third party financing. 4.4.2 Impact on Accumulated Surplus There are two primary factors that affect the accumulated surplus, these being: 1) Internally Appropriated Expenses; and 2) Operating Surpluses. 46 Confidential | All Rights Reserved | EY
Internally Appropriated Expenses There are three streams of Internally Appropriated Expenses: Funds restricted due to the nature of the constraints on the funds Contingencies or unusual expenses identified by Senior Management Funds restricted because operations span the school year ► Education Plan funds ► BCeSIS implementation ► Projects in Progress ► ► ► Professional-Development (Pro-D) funds Aboriginal Education Grants received from donors ► Anticipated severance ► ► Department/Program operating surplus requested to be carried forward Purchase orders or expenditures that have been ordered, but not yet arrived/title transferred Based on EY’s review, these appropriations are reasonable as it is based on external limitations on the use of the funds These appropriations are reasonable as it relates to identified contingencies and expenses expected by Senior Management to be incurred in the following year The project in progress and program surplus request are reasonable to appropriate as the funds relate to identified projects Purchase orders likely do not require appropriation as the amount is not payable yet. In SY2013/14 the internally Appropriated Expenses related to purchase orders was $1.8M Surpluses restricted to provide funding to meet future year contractual and grant condition commitments: ► During the school year, VBE receives grants and funding for specific purposes. To the degree that not all the funds are spent, the balance is restricted to be used for future years. For example, the Ministry has been providing $1M annually for the Education Plan. The purpose of this funding is to help districts implement initiatives related to the B.C. Education Plan with a focus on support for early learning and the development of trades’ skills. As VBE has been spending less than $1M per year, the remainder of the funds is restricted to be used in future years for the specific purpose stated. Surpluses restricted to provide for contingencies: ► Senior Management identifies contingencies, for example, anticipated severance and unusual expenses, and restrict funds to cover the expected future expenses. Confidential | All Rights Reserved | EY 47
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DISCUSSION DRAFT - FOR ADVICE OF MI
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Contents 1. Executive summary .....
Page 7: Terms of reference ► ► ► ►
Page 10 and 11: FCI FTE IPP Internally Appropriated
Page 13 and 14: 1. Executive summary Confidential |
Page 15 and 16: ► ► ► Maintain significant ex
Page 17 and 18: Finding: The Initial Preliminary Pr
Page 19 and 20: Administrative, support and overhea
Page 21 and 22: Prior to implementing capacity rati
Page 23 and 24: contribute to sound fiscal manageme
Page 25 and 26: 2. Background and context 2.1 Provi
Page 27 and 28: 2.5 Project objectives and scope In
Page 29 and 30: 3. Budget development and forecasti
Page 31 and 32: 3.2.2 Out of scope The areas below
Page 33 and 34: Objective: Top recommendations: Rev
Page 35 and 36: $ million Chart 3.1 - Operating Sur
Page 37 and 38: services ► Tangible capital asset
Page 39 and 40: In this report where we refer to th
Page 41 and 42: 3.4.2 Budget timeline 1) The Initia
Page 43 and 44: 3.5 Multi-year forecasts 3.5.1 Fore
Page 45 and 46: 3.5.2 Review of SY2014/15 and SY201
Page 47 and 48: Included in the revenue adjustments
Page 49 and 50: SY2016/17 and SY2017/18 forecast We
Page 51 and 52: 4. Accumulated surpluses and defici
Page 53 and 54: 4.2.2 Out of scope The areas below
Page 55 and 56: $ million 4.4 Review of historical
Page 57: History of forecasted deficits vs a
Page 61 and 62: EY was advised by VBE that operatin
Page 63 and 64: $ million $ million $ million To co
Page 65 and 66: Maintaining a net accumulated surpl
Page 67 and 68: School year SY2014/15 Accumulated S
Page 69 and 70: 5. Administrative, support and over
Page 71 and 72: In the pages that follow, key findi
Page 73 and 74: Objective: Identify opportunities t
Page 75 and 76: 5.4.2 Non - Provincial grant (MEd)
Page 77 and 78: Finding 5.2 VBE received a $0.06M g
Page 79 and 80: Finding 5.4 VBE is among the top di
Page 81 and 82: 5.4.7 Tuition - offshore tuition fe
Page 83 and 84: Most school districts, including Va
Page 85 and 86: Finding 5.9 In absolute terms, VBE
Page 87 and 88: VBE’s Facilities team performed a
Page 89 and 90: 5.4.13 Summary of revenue opportuni
Page 91 and 92: 600 14.0% Operating expenditure Mil
Page 93 and 94: If VBE were to achieve the same lev
Page 95 and 96: Based on our analysis of the previo
Page 97 and 98: Table 5.5: VBE and Subset Districts
Page 99 and 100: Table 5.6 : VBE and Surrey average
Page 101 and 102: 5.5.6 Services and supplies - servi
Page 103 and 104: 5.5.8 Services and supplies - profe
Page 105 and 106: 5.5.10 Services and supplies - dues
Page 107 and 108: 5.5.12 Services and supplies - inte
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5.5.14 Services and supplies - util
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5.5.16 Cost efficiency initiatives
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Table 5.10: Management proposals 20
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Table 5.12: New initiatives Initiat
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Table 5.13: Implementation of Deloi
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Table 5.14: Summary of revenue and
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6. Capital asset management 6.1 Int
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6.2 Scope and approach 6.2.1 Work s
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Top recommen dations: VBE develop t
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Table 6.2: Summary of District’s
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6.4.3 Roles and responsibilities Th
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Current state Section Excess Surplu
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6.5.2 Capital project planning proc
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► 2013/14 Capital Plan covering t
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► ► The lengthy consultation pr
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Recommendation 6.8 The Ministry rev
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Finding 6.5: Reduction in excess su
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Number of Surplus seats In contrast
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Utilization Historical and Projecte
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Low utilization in the east (74%) a
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The assumptions that predicate the
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6.6.5 Net annual cost savings throu
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This has a direct impact on the num
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Table 6.6: Summary of potential ann
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If the 2009 BC Assessment property
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► A school with low enrolment may
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6) Board decision Any decision to c
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uildings). 6.7 Seismic mitigation p
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Table 6.9: Summary of District’s
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Recommendation 6.26 Where VBE is ab
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aggressive capacity rationalization
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Age (Years) 6.8.2 Age of District
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In addition, VBE purports that thes
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6.8.4 Reducing annual maintenance c
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Recommendation 6.33 Other school di
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access the upside of land re-develo
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Table 6.14: Summary of potential fi
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7. Board governance 7.1 Introductio
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► Accomplish goals designed to br
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7.2.3 Methodology and approach Plan
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► Leading practice and peer analy
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7.4 Key findings and recommendation
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Board Priorities The Comptroller Ge
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These Standing Committees are addit
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to a hybrid of VBE’s People and S
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Board of Trustees’ performance se
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Recommendation 7.4.A Board of Trust
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Recommendation 7.5.B During the cou
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8. Other matters All other matters
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9. Summary of recommendations Ref R
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Ref Recommendation Ministry of Educ
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Appendices 9. Other matters Confide
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Document Overview of Class Size and
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Document Class size and student ach
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Document Vancouver Board of Educati
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APPENDIX C: Budget documents prepar
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Document 5 A Restoration Budget pre
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Vancouver Surrey Central Okanagan V
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APPENDIX F: Progress review of prev
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Previous recommendations ► ► po
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Previous recommendations ► ►
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