presentation to board june 16, 2009 presented by: john a. sabo, associate director – leading...

Presentation to BoardJune 16, 2009

Presented by: John A. Sabo, Associate Director – Leading Services & Treasurer of the Board Susan La Rosa – Director of Education & Secretary of the Board

2009-10

BUDGET

York Catholic District School Board

APPROVAL OF THE 2009-10 FINANCIAL ESTIMATES

Objectives re: June 16, 2009 meeting

1. Review final draft of the revenue and expenditure projections for the 2009-2010 Operating Budget, and identify changes made from previous budget modules/information presented, as well as any new assumptions;

2. Present to the Board the motions required for the approval and implementation of the 2009-2010 Financial Estimates, along with related/enabling motions.

3. Allow for discussion on the follow-up required for the implementation and completion of the 2009-2010

“allocation of resources balancing process” and for preparation of the development of the 2010-2011 and future Operating Budget

2009-10 Budget Projections

Total Operating & Non-Operating

Total Operating

Revenue $ 524,490,212 $ 479,066,293

Expenditures $ 524,490,212 479,066,293

Difference 0 0

NOTE: For the 2009-10 Financial Estimate Projections, the revenue and expenditures have “excluded” provision for the use of reserves. Recommendation “B” provides proposed treatment for 2009-10.

Agenda Report to Board

June 16, 2009 REPORT TO TRUSTEES:

APPROVAL OF 2009-10 FINANCIAL ESTIMATES (dated June 12, 2009, 6 pages)

Attachments Title

1 Summary of 2009-10 Projections & 2008-09 Revised Estimates

2 Revenue Summary Comparison 2009-10 vs. 2008-09

3 Revenue Summary – pie chart (Operating)

4 Revenue Summary – pie chart (Operating & Non Operating)

5 Expenditure Summary Comparison 2009-10 vs. 2008-09

6 Expenditure Summary – pie chart (Operating)

7 Expenditure Summary – pie chart (Operating & Non Operating)

8 Operating Fund Comparison of 2009-10 vs. 2008-09

9 Summary of Recommendations re final approval of the 2009-10 Financial Estimates

Supplementary Budget Support Materials

SUPPLEMENTARY BUDGET SUPPORT MATERIALS No of Subject Pages Colour 1. Cover Memorandum 5 White 2. Revenue Estimates 5 Green 3. Reserve Analysis 3 Buff 4. Expenditure Projections 12 Pink 5. Draft Expenditure Modules

i) Salaries and Benefits 28 Yellow ii) Transportation 14 Blue iii) Accommodation 8 Purple iv) Information Systems 8 Salmon v) G.S.B. 7 Ivory

Note: Draft Expenditure Modules are provided for Trustee information only and will be

subject to further review and refinement at the Allocation of Resources Design Team. Recommendation “D” provides Board direction on this matter.

• A series of “Allocation of Resources” Design Team meetings have and will continue to be held

• May 5, 2009 presentation to Board• Review of Projected Operating revenues

• Distribution of Allocation of Resources Workbooks and support materials

• May 13, 2009 presentation of the 2009-10 Salaries and Benefits Module to Labour Relations

• May 26, 2009 Budget Update to Board

• Collection of major areas of expenditure data and finalization of expenditure adjustments

• Finalization of proposed revenue adjustments

• Development of proposed enabling recommendations

BACKGROUND INFORMATION

“Concepts”

• Expenditure projections are based on total revenue allocation without use of reserves

• Expenditures have been separated into three distinct categories

• Salaries and Benefits ( 87.7%)

• Committed Expenditures ( 7.1%)

• All essential/contractual expenses e.g. utilities, transportation, maintenance contracts, phones, network lines legal/audit etc. “fixed” in nature over which there is little or no discretion.

• Other Expenditures (5.2%)

• All other expenditures

BACKGROUND INFORMATION

2009-10 Projections

Operating Revenue $ 479,066,293

Expenditures:

Salaries & Benefits (87.7%) $ 419,961,059

Committed (7.1%) 33,849,638 (453,810,697)

Balance available to fund remaining Other Expenditures: 25,255,596

Other Expenditures (5.2%) (25,255,596)

Surplus/(Shortfall) 0

2009-10 FINANCIAL ESTIMATES – Summary

Operating Revenue & Expenditures Projections

Major assumptions used in developing final budget projections :

SALARIES & BENEFITS

• Implementation of Provincial Framework Agreement for 2009-10 (Note: 2nd year of 4 year agreement)

• Salaries and Benefits are as presented to Labour Relations Committee on May 13, 2009

• Benefits renewal premiums as recommended by Benefits consultant (Mercer)

• Detailed Salaries & Benefits Expenditure module (28 pages) provides details around related assumptions and staffing level projections for 2009-10

MAJOR ASSUMPTIONS


COMMITTED EXPENDITURES (non Salaries & Benefits)

• Committed expenditures are projected at 2009-10 levels as required

OTHER EXPENDITURES

• All other budgets are at 2008-09 Revised Estimates levels reduced by the amount required to balance the 2009-10 budget (total targeted amount $ 1.4 million or approximately 5.3% of Revised Estimates)

• It is proposed that the Allocation of Resources Design Team work towards achieving the reductions that have been made (from Revised Estimates levels.)

• System targets (e.g. Printing budgets)

• Budget release holdbacks etc.

MAJOR ASSUMPTIONS


RESERVES:

• No provision has been made for the transfer of reserve funds to balance the operating budget

• For 2009-10 it is proposed that a transfer of reserves only be used for those expenditures “excluded” from the operating expenditure projections due to their infrastructure or multi-year profile (e.g. Student Admin. System, telephony, disaster recovery) or of a “one-time” nature.

• Recommendation ‘B’ proposes drawdown of up to approximately $ 1.13 million

MAJOR ASSUMPTIONS

2008-09 Revised Estimates

2009-10 Projections

Increase/(Decrease)

$ %

Operating Revenue $ 461,051,449 $ 479,066,293 $ 18,014,844 3.91%

Operating Expenditures 464,442,490 479,066,293 14 ,623,803 3.15%

Surplus/(Shortfall) $ (3,391,041) 0 $ 3,391,041

Transfer from Reserves 3,391,041 0 3,391,041

Surplus/(Shortfall) 0 0 0

2009-10 FINANCIAL ESTIMATES – Summary

Projected Operating Revenue & Expenditures

NOTE: For the 2009-10 Financial Estimate Projections, the revenue and expenditures have “excluded” provision for the use of reserves. Recommendation “B” provides proposed treatment for 2009-10.

2008-09 Revised Estimates

2009-10 Projections

Increase/(Decrease)

$ %

REVENUE- Operating

Grants for Student Needs $ 451,265,313 $ 469,486,798 $ 18,221,485 4.04

Other Grants 1,000,000 1,000,000 0 -

Other Revenue 4,845254 4,313,000 (532,254) (10.99)

Continuing Education 3,940,700 4,266,495 325,795 8.27

$ 461,051,267 $ 479,066,293 $ 18,015,026 3.91%

2009-10 PROJECTIONS

ANALYSIS OF GRANT CHANGE-Operating2008-09 Revised Estimates vs. 2009-10 Projections

Total Increase $ 18,221,485 4.03%

Resulting from: (estimated)

Enhancements (PFA & Other misc) $ 15,685,473 3.48%

Constraints (2,466,000) (0.55)%

Net Funding increases (before growth) $ 13,219,473 2.93%

Growth increase 5,002,012 1.11%

Total Increase $ 18,221,485 4.04%

Above chart is an extract from May 5, 2009 presentation to Board.

HIGHLIGHTS OF GRANT CHANGES (cont’d)HIGHLIGHTS OF GRANT CHANGES (cont’d)

CONSTRAINT MEASURES $ 2.46 million decrease

Pupil Foundation Grant

Textbooks funding reduced $ 700,000

Classroom computers funding reduced $ 700,000

Staff Development funding eliminated $ 600,000

Student Transportation – 1% route reductions targeted $ 166,000

Special Education and Learning Opportunities (staff development component) $ 300,000

2008-09 Revised

Estimates2009-10

Projections %

Increase/(Decrease)

$ %

EXPENDITURES-by Object

Salaries & Wages $ 353,304,313 $ 366,712,709 76.55 $ 13,408,396 3.80

Employee Benefits 51,512,147 53,248,350 11.11 1,736,203 3.37

Total Sal. & Ben. $ 404,816,460 $ 419,961,059 87.66 $ 15,144,599 3.74

Staff Development 2,716,806 2,389,079 .51 (327,727) (12.06)

Supplies & Services 30,612,699 29,532,766 6.16 (1,079,933) (3.53)

Capital Expenditures 3,823,916 3,643,364 .76 (180,552) (4.72)

Fees & Services 22,032,332 23,131,300 4.83 1,098,968 4.43

Other Expenditures 440,277 408,725 .08 (31,552) (7.17)

Total Support Costs $ 59,626,030 $ 59,105,234 12.34 (520,796) (.87)

Total $ 464,442,490 $ 479,066,293 100.0 $ 14,623,803 3.66

2009-10 PROJECTIONS

2008-09 Revised

Estimates2009-10

Projections %

Increase/(Decrease)

$ %

EXPENDITURES by Category

Salaries & Wages $ 353,304,313 $ 366,712,709 76.55 $ 13,408,396 3.80


Total $ 404,816,460 $ 419,961,059 87.66 $ 15,144,599 3.74

2009-10 PROJECTIONS

Committed 32,968,440 33,849,638 7.07 881,198 2.67

$ 437,784,900 $ 453,810,697 94.73 $ 16,025,797 3.66

2008-09 Revised

Estimates2009-10

Projections% of total

Increase/(Decrease)

$ %


Salaries & Wages $ 353,304,313 $ 366,712,709 76.55 $ 13,408,396 3.80


Total $ 404,816,460 $ 419,961,059 87.66 $ 15,144,599 3.74

2009-10 PROJECTIONS

Committed 32,968,440 33,849,638 7.07 881,198 2.67

$ 437,784,900 $ 453,810,697 94.73 $ 16,025,797 3.66

2008-09 Revised

Estimates2009-10

Projections% of total

Increase/(Decrease)

$ %


Salaries & Wages $ 353,304,313 $ 366,712,709 76.55 $ 13,408,396 3.80


Total $ 404,816,460 $ 419,961,059 87.66 $ 15,144,599 3.74

2009-10 PROJECTIONS

Committed 32,968,440 33,849,638 7.07 881,198 2.67

$ 437,784,900 $ 453,810,697 94.73 $ 16,025,797 3.66

Other 26,657,590 25,255,596 5.27 (1,401,994) (5.26)

Total $ 464,442,490 $ 479,066,293 100.0 $ 14,623,803 3.05

2009-10 PROJECTIONS

Operating Expenditures by Category

Salaries & Benefits87.66%

Other5.27%

Committed7.07%

Salaries & Benefits Committed Other

Salaries & Benefits $ 419,961,059 87.66%

Committed 33,849,638 7.07%

Sub-total $ 453,810,697 94.73%

Other 25,255,596 5.27%

TOTAL $ 479,066,293 100.00%

2008-09 Revised

Estimates2009-10

Projections

Increase/(Decrease)

$ %

EXPENDITURES-categorized as Committed (essential/contractual etc.)

IT-Line Chges/Sftwr $ 1,089,117 $ 1,094,525 $ 5,408 .50

Bus Adm Telephone 372,259 387,500 15,241 4.09

Transportation-Fuel 945,000 820,653 (124,347) (13.16)

Accom. Energy 10,196,526 10,018,176 (178,350) (1.75)

Bus Adm Legal/Aud 288,250 251,750 (36,500) (12.66)

Information Sys 1,522,078 2,097,729 575,651 37.82

Transportation 14,619,304 14,457,625 (161,679) (1.11)

Insurance 1,247,352 1,381,563 134,211 10.76

Snow/Lawn/Garbage 1,382,582 1,916,936 534,354 38.65

Accom. Other 1,305,972 1,423,181 117,209 8.97

$ 32,968,440 $ 33,849,638 $ 1,853,781 2.99

2009-10 PROJECTIONS

2008-09 Revised

EstimatesTargeted

Reductions2009-10

Projections

Other Expenditures

Staff Development 2,716,806 (327,727) 2,389,079

Supplies & Services 17,919,825 (707,913) 17,211,912

Capital Expenditures 3,823,916 (180,552) 3,643,364

Fees & Services 1,756,766 (154,250) 1,602,516

Other Expenditures 440,277 (31,552) 408,725

$ 26,657,590 $ (1,401,994) $ 25,255,596

2009-10 PROJECTIONS

Targeted reductions methodology utilized above is included as part of the supplementary information provided.

The Allocation of Resources Design Team will have the opportunity to review where and how the reductions are applied upon Budget release and implementation.

2008-09 Revised

Estimates2009-10

Projections

Increase/(Decrease)

$ %

REVENUE $ 461,051,358 $ 479,066,293 $ 18,014,935 3.15%

EXPENDITURES

Salaries & Wages $ 353,304,313 $ 366,712,709

Employee Benefits 51,512,147 53,248,350

Total Salary & Benefits $ 404,816,460 $ 419,961,059 $ 15,144,599 3.74%

Support Costs:

Essential/Contractual $ 32,968,440 $ 33,849,638 $ 881,198

Other 26,657,590 25,255,596 (1,401,994)

Total Support Costs $ 59,626,030 $ 59,105,234 $ (520,796) (.87)%

TOTAL EXPENDITURES $ 464,442,490 $ 479,066,293 $ 14 ,623,803 3.15%

SURPLUS/ (SH0RTFALL) $ (3,391,132) -

2009-10 PROJECTIONS


TOTAL

Operating $ 479,066,293

Non-Operating 45,423,919

TOTAL $ 524,490,212

Notes:

The Difference of $ 45.42 million between Total Operating & Non-Operating vs. Operating Only is the funding received for non-operating expenditure functions (i.e.):• School Renewal $ 5.63 million• New Pupil Places $ 26.16million• Primary Class Size Capital $ 2.36 million• Good Places to Learn allocation $ 1.37million• Pre-98 Debt $ 9.43 million• Best Start/Growth Schools $ .47million

Increase (Decrease) %

OPERATING REVENUE

Grants for Student Needs 451,265,313$ 469,486,798$ 18,221,485$ 4.04%

Other Grants 1,000,000$ 1,000,000 - 0.00%

Other Revenue 4,845,345$ 4,313,000 (532,345) -10.99%

Continuing Education-Other 3,940,700$ 4,266,495 325,795 8.27%

TOTAL OPERATING REVENUE 461,051,358$ 479,066,293$ 18,014,935$ 3.91%

NON-OPERATING REVENUE 43,277,910 45,423,919 2,146,009 4.96%

504,329,268$ 524,490,212$ 20,160,943$ 4.00%TOTAL REVENUE

REVENUE SUMMARY

Difference

2008-09 Revised

Estimates

2009-10 Revenue

Projections


Recommendation A(i) reflects proposed approval of above amount of $ 524,490,212

Grants98.00%

Other Revenue0.90%

Continuing Education

0.90%

Other Grants0.20%

Grants Other Grants Other Revenue Continuing Education

Grants for Student Needs $ 469,486,798 98.00%

Other Grants 1,000,000 .20%

Other Revenue 4,313,000 .90%

Continuing Education 4,266,495 .90%

$ 479,066,293 100.00%

2009-10 Operating Revenue Projections

Non-Operating8.75%

Grants89.43%

Other Revenue0.82%

Continuing Education

0.81%

Other Grants0.19%

Grants Other Grants Other RevenueContinuing Education Non-Operating

Grants for Student Needs $ 469,486,798 89.43%

Other Grants 1,000,000 .19%

Other Revenue 4,313,000 .82%

Continuing Education 4,266,495 .81%

Non-Operating 45,426,919 8.75%

$ 524,490,212 100.00%

2009-10 Operating & Non-Operating Revenue Projections

Benefits11.12%

Supplies & Services6.16%

Staff Development0.50%Salaries & Wages

76.55%

Capital0.76%

Fees & Services4.83%

Other0.09%

Salaries & Wages Benefits Staff Development Supplies & Services

Capital Fees & Services Other

2009-10 Projected Operating Expenditures – by Object

Salaries & Wages $ 366,712,709 76.55%

Employee Benefits 53,248,350 11.12%

Staff Development 2,389,079 .50%

Supplies & Services 29,532,766 6.16%

Capital Expenditures 3,643,364 .76%

Fees & Services 23,131,300 4.83%

Other 408,725 .09%

TOTAL $ 479,066,293 100.0%

Non-operating8.66%

Benefits10.15%

Supplies & Services5.63%

Staff Development0.46%

Salaries & Wages69.92%

Capital0.69%

Fees & Services4.41%

Other0.08%

Salaries & Wages Benefits Staff Development Supplies & Services

Capital Fees & Services Other Non-operating

Salaries & Wages $ 366,712,709 69.92%

Employee Benefits 53,248,350 10.15%

Staff Development 2,389,079 .46%

Supplies & Services 29,532,766 5.63%

Capital Expenditures 3,643,364 .69%

Fees & Services 23,131,300 4.41%

Other 408,725 .08%

Non-Operating 45,423,919 8.66%

TOTAL $ 524,490,212 100.0%

2009-10 Projected Operating & Non-Operating Expenditures – by Object

PROJECTED Reserve Status at August 31, 2009

OPERATING RESERVES

August 31, 2008 Balance

2008-09 Projected Transfer

August 31, 2009 Projected Balance

Protected 1,795,268 1,795,268

Non-protected 4,523,566 3,391,132 1,132,434

6,318,834 3,391,132 2,927,702

NOTE: The 2008-09 Projected transfer is based on 2008-09 Revised Estimates. Actual transfer will be subject to August 31, 2009 financial statement reconciliation process.

Proposed Recommendations

The series of proposed recommendations (along with background information and rationale for each) related to the approval of the 2009-2010 Financial Estimates are included on Attachment #8. They are organized into six groupings of motions as follows:

A. Approval & Submission of 2009-2010 Financial Estimates

i. Revenue

ii. Salaries & Benefit Expenditures

iii. Other Expenditures

B. Use of Unprotected Reserves for 2009-2010

C. Use of Operating Budget Surplus for EDC Purposes – Policy 610

D. Monitoring and Allocation of 2009-2010 Financial Estimates

i. Audit Committee

ii. Allocation of Resources Design Team

E. Submission of Revised Estimates

F. Lobby Efforts Re: Fair and Equitable Funding

A. APPROVAL AND SUBMISSION OF 2009-10 FINANCIAL ESTIMATES

RECOMMENDATIONS:

i) Revenue Estimates for 2009-2010:

THAT the Board approve the submission of the Revenue Financial Estimates to the Ministry of Education for the fiscal year September 1, 2009 to August 31, 2010, in the total amount of $524,490,212 (based on operating and non-operating) as presented in the budget documentation presented as at June 16, 2009.

ii) Salaries and Benefits Estimates 2009-2010:

THAT the Board approve the submission of the Salaries and Benefits Expenditure Estimates to the Ministry of Education for the fiscal year September 1, 2009 to August 31, 2010, in the total amount of $419,961,059 (based on operating only) as presented in the budget documentation presented as at June 16, 2009.

iii) Support Costs (Other Than Salaries and Benefits):

THAT the Board approve the submission of the Support Costs Expenditure Estimates to the Ministry of Education for the fiscal year September 1, 2009 to August 31, 2010, (based on operating and non-operating) in the total amount of $104,529,153 as presented in the budget documentation presented as at June 16, 2009.

B. USE OF UNPROTECTED RESERVES FOR 2009-10

RECOMMENDATION:

THAT the Board approve the provision of $1,132,434 of transfer of reserves plus an equal offsetting amount of expenditure provision as part of the submission of the Financial Estimates to the Ministry of Education for the fiscal year September 1, 2009 to August 31, 2010.

C. USE OF OPERATING BUDGET SURPLUS FOR EDC PURPOSES

RECOMMENDATION:

THAT the Board not designate 2009-10 Operating Budget funds for the purpose of acquisition of school sites.

D. MONITORING AND ALLOCATION OF 2009-2010 FINANCIAL ESTIMATES

RECOMMENDATIONS:

Audit Committee:

THAT Administration continue to report to the Board through the Audit Committee a summary of budget account transfers as well as any significant changes in budget assumptions and their projected impact on the 2009-2010 Operating Budget estimates and Revised Estimates.

Allocation of Resources Design Team:

THAT Administration regularly report on the activities of strategies developed by the Allocation of Resources Design Team for review and approval by the Board, with the objective of leveraging financial resources and ensuring compliance with Ministry regulations.

E. SUBMISSION OF REVISED ESTIMATES

RECOMMENDATIONS:

THAT Administration develop and submit revised 2009-2010 Estimates to the Ministry of Education prior to December 15, 2009, and that a summary of the material changes between original and revised estimates be reviewed at the Audit Committee, and

THAT, should the calculation of Revised Estimates result in material changes to revenue or expenditure projections, Administration be directed to develop options and strategies for the Board to consider for implementation in the 2009-2010 fiscal year.

F. LOBBYING OF GOVERNMENT

i) THAT the Board continue to lobby the government to ensure equitable and adequate funding is available for all students in Ontario, and

ii) THAT Administration be directed and authorized to lobby on behalf of the Board for changes in the new funding model where, in the opinion of administration, the principles of equity and adequacy are not being met.

iii) THAT the Board in cooperation with the Ontario Catholic School Trustees Association undertake a review of data regarding school board budgets with the objective of developing a coordinated approach with the Ministry of Education for addressing the short and long term financial needs of school boards.

RECOMMENDATIONS:

NOTE: As previously reported, expenditures must be categorized according to Ministry-defined envelopes. Based on preliminary categorization of expenditures included in the final projection, the 2009-10 (as well as projected 2008-09) Administration and Governance envelope will be “exceeded”, but will be less than the Ministry-maximum threshold of 15%.

No Deficit (Balanced Budget)

Compliance with Funding “Envelopes” Special Education Pupil Accommodation Administration and Governance see note

COMPLIANCE REPORTING

Summary/Conclusion

As noted at past Board meetings, the development of budget information has been focused on capturing accurate data and providing accurate expenditure and revenue projections based on assumptions identified.

Various individuals have been involved in the developing and coordinating of budgetary information. Unless identified in this report, all assumptions, issues and concerns presented at the previous meetings remain

NEXT STEPS

The next steps following review of final draft projections and approval of the proposed recommendations are as follows:

1. Complete and submit Estimates to Ministry of Education in prescribed format and code of account groupings prior to the required Ministry deadline of June 30, 2009.

2. Prepare for implementation of the 2009-2010 Operating Budget effective for September 1, 2009, including continuation of budgetary restraints and strategies utilized in 2008-09.

3. Prepare for the scheduling of a series of Allocation of Resource Design Team meetings to facilitate implementation of

Recommendation “D”.

4. Prepare and complete Revised Estimates for submission to the Ministry of Education prior to December 15, 2009.

5. Continue lobby efforts directly and through OCSTA to ensure the short and long term financial stability of the Board.

KEEPING THE BALANCE

and

LEVERAGED USE OF RESOURCES

FISCAL STUDENT

RESPONSIBILITY vs. OUTCOMES

THE CHALLENGETHE CHALLENGETHE CHALLENGETHE CHALLENGE

QUESTIONS ?QUESTIONS ?QUESTIONS ?QUESTIONS ?

presentation to board june 16, 2009 presented by: john a. sabo, associate director – leading...

Documents