18Nov21 Op Finance Committee Agenda
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NOTICE OF MEETING Vancouver School Board Secretary-Treasurer’s Office Finance Committee (Pending Board Approval) November 16, 2018 Oliver Hanson Lois Chan-Pedley Fraser Ballantyne Estrellita Gonzalez Suzanne Hoffman, Superintendent of Schools J. David Green, Secretary-Treasurer Notice of Meeting A meeting of the Finance Committee will be held in Committee Room # 180 of the Education Centre, 1580 West Broadway, Vancouver, British Columbia, on Wednesday, November 21, 2018 at 5:30 pm. Trustees: Carmen Cho Jennifer Reddy Janet Fraser Allan Wong Barb Parrott Student Trustee: Hazel Pangilinan District Management Staff: Carmen Batista Lisa Landry Aaron Davis Jody Langlois John Dawson Patricia MacNeil Pedro da Silva Jim Meschino Mette Hamaguchi David Nelson Joann Horsley-Holwill Lorelei Russell Magdalena Kassis Rob Schindel Michele Kelly Shehzad Somji Adrian Keough Richard Zerbe Brian Kuhn Reps: Terry Stanway, VSTA Alt. Allison Jambor, VESTA Leslie Roosa, VESTA Doug Matear, VASSA David Bach, VASSA Harjinder Sandhu/Doug Roch, VEPVPA David Murphy, VEPVPA May Ke, DPAC Amanda Hillis, DPAC Peter Powell, PASA Warren Williams, CUPE 15 Thomas Leung, CUPE 15 Charleen Ann Derzak, CUPE 407 Brent Boyd, CUPE 407 Stephen Kelly, Trades Raymond Szczecinski,Trades Harjit Khangura, IUOE Tim DeVivo, IUOE Jonathan Zhu, VDSC Others: Secretary-Treasurer’s Office Ed. Centre Engineers District Parents Rentals Chris Allen Kathie Currie, CUPE 15 Lynda Bonvillain Communications Will Hsu VANCOUVER SCHOOL BOARD COMMITTEE MEETING FINANCE COMMITTEE Wednesday, November 21, 2018 at 5:30 pm Room 180, VSB Education Centre AGENDA The meeting is being held on the traditional unceded territory of the Musqueam, Squamish and Tsleil- Waututh Coast Salish peoples. Meeting Decorum: The Board has a strong commitment to ethical conduct. This includes the responsibility of committee members to conduct themselves with appropriate decorum and professionalism. As Chair of the Committee it is my responsibility to see that decorum is maintained. To do that I ask that: i. All members/delegates request to speak through the chair; ii. Civility towards others is maintained as stakeholder representatives and Trustees share perspectives and participate in debate; iii. Staff be able to submit objective reports without influence or pressure as their work is acknowledged and appreciated; iv. Committee members refrain from personal inflammatory/accusatory language/action; v. Committee Members, Trustees, representatives and /staff present themselves in a professional and courteous manner. Please see reverse for the Purpose/Function and Power and Duties of this Committee. 1. Delegations Presenters None 2. Information Items 2.1 Terms of Reference J. David Green 2.2 Financial Update – September 2017 YTD J. David Green / Shehzad Somji 2.3 Financial Statement Discussion & Analysis Shehzad Somji 2.4 Classroom Enhancement Fund Update Shehzad Somji 3. Discussion Items 3.1 Needs Budget Terms of Reference Shehzad Somji / J. David Green 3.2 Budget Development Process J. David Green 3.3 Budget Monitoring Administrative Procedure Shehzad Somji 4. Items for Approval 4.1 Statement of Financial Information (SOFI) Shehzad Somji Date and Time of Next Meeting Wednesday, January 16, 2019 at 5:30 pm Finance Committee 5.1 Purpose/Function: 5.1.1 To assist the Board in being fiscally responsible. 5.2 Powers and Duties: 5.2.1 Annually make recommendations to the Board regarding its submission to the Select Standing Committee on Finance and Government Services. 5.2.2 Provide input regarding the budget development process. 5.2.3 Make recommendations regarding school fees. 5.2.4 By reviewing quarterly financial reports make recommendations for increasing value for money including: reducing costs, increasing revenue, eliminating or reducing resource allocations where commensurate results are not being achieved, disposal of assets, and increasing benefits without increasing costs. 5.2.5 Fiscal Matters Referred to the Committee by the Board: 5.2.5.1 Review matters referred and make recommendations as requested. Date: November 21, 2018 ITEM 2.1 To: Finance Committee From: J. David Green, Secretary-Treasurer Shehzad Somji, Assistant Secretary-Treasurer Re: Finance Committee Terms of Reference REFERENCE TO STRATEGIC PLAN: Goal 4: Provide effective leadership, governance and stewardship Objectives: Effectively utilize school district resources and facilities. Support effective communication, engagement and community partnerships. INTRODUCTION: This report is provided for information only. BACKGROUND: Policy 8: Board Committees of the Board Policy Handbook outlines the role of the Standing Committees of the Board. Section 5 of this Policy specifically relates to the Finance Committee’s purpose, powers and duties, membership and meetings. DISCUSSION: One change for the Finance Committee’s responsibilities going forward is that the year end financial reporting and audit scope will be the responsibility of the newly formed Stand Alone Audit Committee of the VSB. The Finance Committee will continue to provide input into the budget process and will review year-to-date financial information presented throughout the year. The information below is taken from Policy 8 outlining the responsibility of the Finance Committee: 1 RECOMMENDATION: This report is provided for information only. 2 Date: November 21, 2018 ITEM 2.2 To: Finance Committee From: J. David Green, Secretary-Treasurer Re: Financial Update to September 30, 2018 (Operating Fund) REFERENCE TO STRATEGIC PLAN: Goal 4: Provide effective leadership, governance and stewardship Objectives: Effectively utilize school district resources and facilities. Develop and implement a long-term financial planning model. INTRODUCTION: This financial update report provides the results for the operating fund for the 3 months ended September 30, 2018. This report is provided for information. BACKGROUND: The School District’s financial activities are accounted for using Public Sector Accounting Board (“PSAB”) reporting standards. The financial activities incurred by the District are recorded in three different funds: the operating fund, the capital fund and numerous special purpose funds. Together they form the consolidated Statement of Revenue and Expense for the District. The operating fund is the fund that contains the operating grants supplied by the Ministry of Education and where the majority of expenses required providing educational service to District schools are recorded. This year-to-date financial report is for the operating fund only. DISCUSSION: The financial results for the three months ended September 30, 2018 compared to the same period in the prior year and to the preliminary annual budget adopted in June 2018 are illustrated below: 1 2018-2019 2017-2018 YTD September Budget % YTD September Budget % Revenue 58,598,154 497,682,177 11.8% 58,135,225 490,483,528 11.9% Expenses Salaries-Educational Assistants 2,850,077 36,477,406 7.8% 2,720,052 34,232,663 7.9% Salaries-Other Professionals 1,842,498 9,327,367 19.8% 1,559,532 9,331,710 16.7% Salaries-Principals and VP's 4,108,534 23,624,146 17.4% 4,292,903 22,623,657 19.0% Salaries-Substitutes 108,127 9,949,554 1.1% 141,085 10,434,923 1.4% Salaries-Support Staff 8,615,515 54,299,796 15.9% 9,106,369 52,247,709 17.4% Salaries-Teachers 24,211,511 226,063,514 10.7% 24,087,597 225,102,562 10.7% Benefits 10,887,928 95,410,548 11.4% 10,554,769 94,703,668 11.1% Services and Supplies 4,218,533 40,703,764 10.4% 4,526,663 39,798,680 11.4% Total Expenses 56,842,722 495,856,095 11.5% 56,988,970 488,475,572 11.7% Net Revenue (Expense) 1,755,432 1,826,082 1,146,256 2,007,956 Funded from Operating Capital Lease 435,144 2,648,696 1,373,988 1,600,258 Capital from Operating 362,785 1,211,608 457,944 824,295 Amortization of Employee Future Benefits 132,764 Transfer from Local Capital (3,217) (71,610) (399,361) Surplus / (Deficit) 960,719 (2,034,222) (614,066) (150,000) The results show the District has a surplus in the Operating Fund of $960,000 for the three months ended September 30, 2018 compared to a deficit of $614,000 for the same period in 2017. The improved financial position of $1.57 million is a combination of increased revenue of $0.46 million, lower overall expenses of $0.17 million and lower capital lease costs of $0.94 million. The lower capital lease costs for the period, as explained below, resulted from the expiration of technology leases in the quarter. Revenue The percentage of revenue received to the end of September at 11.8% is similar to the 11.9% received to the end of September in 2017. The Ministry of Education grant is the most significant source of revenue for the District and the timing of receipt of that grant is constant year over year. This year’s revenues of $58.6 million for the quarter is approximately $0.5 million higher than the $58.1 million for the same quarter in 2017. With respect to the Ministry of Education grant, the per-pupil allocation has increased by $122 per FTE, resulting in increased revenue of approximately $0.3 million. Revenue in the International Education Department has increased by approximately $0.1 million due to the $500 per student tuition increase and a slightly higher enrolment. Interest revenue has increased by $0.2 million due to the higher interest rate received on the funds held on deposit with the Ministry of Finance’s Central Deposit Program (CDP). The higher interest rate from reflects increases in the Bank of Canada overnight rate that have occurred in the quarter, which are duplicated in the CDP. Offsetting these increases is lower revenue of approximately $0.1 million in rental and community use income. 2 Salaries When looking at the various categories of salaries it is important to recognize that different employee groups work differing times during the year and this is reflected in the percentage of the budget spent to any point in time in the fiscal year.