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Presentation to Board May 27, 2008

York Catholic District School Board. 2008-09 OPERATING BUDGET. UPDATE Preparation of 2008-09 FINANCIAL ESTIMATES. Presentation to Board May 27, 2008. Presented by: J. A. Sabo, Associate Director – Leading Services & Treasurer of the Board. York Catholic District School Board. 2008-09

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Presentation to Board May 27, 2008

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  1. York Catholic District School Board 2008-09 OPERATING BUDGET UPDATE Preparation of 2008-09 FINANCIAL ESTIMATES Presentation to Board May 27, 2008 Presented by: J. A. Sabo, Associate Director – Leading Services & Treasurer of the Board

  2. York Catholic District School Board 2008-09 OPERATING BUDGET As reported at the May 6, 2008 meeting (based on analysis of revenue projections completed and expenditure projections in progress), there is an obvious “disconnect” between projected expenditures and revenues resulting in a budget shortfall or “under-funding”

  3. York Catholic District School Board 2008-09 OPERATING BUDGET Development of a compliant 2008-09 Operating Budget remains a significant challenge in light of the previously identified expenditure pressures, calculated available funding and lack of available reserves. However, the target remains to strive to develop a positive “York Catholic Solution”.

  4. York Catholic District School Board 2008-09 OPERATING BUDGET CONCERNS AND PRESSURE POINTS • Legislative requirement under section 231 of the Education Act for boards to submit a BALANCED budget • Section 286: Directors of Education and other supervisory officers are responsible to the Minister of Education for the performance of their duties in accordance with the ACT and the regulations • Other school boards are at various levels of financial “health” (surplus and deficit)

  5. “FACTS” that must be considered

  6. Objectives re: May 27, 2008 meeting • Follow-up to the information provided at the May 6, 2008 Board meeting • Review Expenditure modules for the 2008-09 Operating Budget not previously available for distribution: • General School Budgets • Accommodation & Plant • Transportation • Information Technology

  7. Objectives (cont’d) • Identify budget modules not yet completed for review • Initiate preliminary discussion on the 2008-09 “budget balancing process and worksheet form” in preparation for approval of the Operating Budget • OTHER NEXT STEPS • Review projected funding shortfall elimination strategies • Establish July 2, 2008 for Budget Approval

  8. BACKGROUND INFORMATION (Included in Agenda package) • Report to Board - May 27, 2008 Information • Transportation(ivory 4 pages) • Plant/Accommodation(purple 18 pages) • General School Budgets(pink 5 pages) • Information Systems (blue 11 pages) Note: Supplementary power point presentations are included for each of the above.

  9. Not finalized Not finalized Not finalized EXPENDITURE SUPPORT MATERIAL PRESENTED

  10. SUPPORT MATERIAL PRESENTED REVENUE RESERVE FUNDS

  11. REVIEW OF BUDGET DEVELOPMENT STEPS • STEP #1 - CALCULATE REVENUE ENTITLEMENTS (based on Ministry Technical Papers using Board specific/relevant data) • STEP #2 - CALCULATE EXPENDITURE REQUIREMENTS (based on Ministry regulations/requirements and Boardpriorities/commitments) • STEP #3 - ENSURE that Revenues meet or exceed Expenditures (since Step #1 is capped, adjustments must occur in Step #2) Note: Step #2 Must Comply to Ministry Regulations & Envelopes

  12. Budget Balancing Worksheet 2008-09 Operating Revenues See Revenue Module dated May 6, 2008 for details

  13. Alternate Approach to Budget Balancing Note: The above projected amount will change, only if new and valid information and assumptions arise.

  14. 2008-09 BUDGET PROJECTION SUMMARY

  15. RESERVES Estimated Board Established Reserve Balance

  16. Budget Balancing Worksheet 2008-09 Operating Expenditures

  17. RESERVES Estimated Board Established Reserve Balance

  18. Alternatives to review/debate

  19. BUDGET BALANCING WORKSHEET ADJUSTMENTS (t.b.d.) • Further Review of Expenditure Projections • Re-Costing • Deferral • Reduction • Capitalization • “Targeted” • Further Review of Revenue Projections • Minor adjustments anticipated

  20. Accumulated Deficit History 1988–2004 Projected 2004-2008 (INCLUDING USE OF RESERVES re 2003-2008) • Amounts reflect Audited Financial Statement figures 1988 - 2007. ( 1992 is net of Undue Burden Grant) 2007-08 based on estimated financial position. • The Accumulated deficit was eliminated in the year ending August 31, 1998. Commencing Sept 1, 1998 the fiscal year changed from Sept 1 to August 31

  21. Accumulated Deficit History 1988–2004/Projected 2004-2008 (EXCLUDING USE OF RESERVES re 2003-2008) 2003-08 accumulated deficit (excluding reserve drawdown) • Amounts reflect Audited Financial Statement figures 1988 - 2007. ( 1992 is net of Undue Burden Grant) 2007-08 Based on Projected Year-end transfer of $4.6 M from Reserves • The Accumulated deficit was eliminated in the year ending August 31, 1998. Commencing Sept 1, 1998 the fiscal year changed from Sept 1 to August 31 • 2003-2007 reflects amounts drawn from reserves each year.

  22. CHALLENGES • Recording and filing of the 2008-09 Estimates • Implementation of the 2008-09 Estimates • Short/long-term sustainability

  23. BUDGET ANALYSIS COMMITTEE • “Recommend strategies for developing a balanced and compliant budget for the current year • Examine strategies for sustaining a balanced and compliant budget on a multi-year basis” Note: As discussed at the May 15, 2008 Budget Analysis meeting, it is proposed that this Committee be used currently and into the Fall (if necessary) to facilitate budget compliance both short- and long-term.

  24. SPECIAL BOARD MEETING Re: Budget Approval: As reviewed at the recent Executive Committee of the Board, a special Board meeting is proposed for Wednesday, July 2, 2008, for the approval of the 2008-09 Operating Budget.

  25. NEXT STEPS: The next steps in the development of the 2008-09 Operating Budget are as follows:  1. Completion of outstanding expenditure modules (Of note Instructional Services and Other) • Review of all budget modules with the view of refining and validating assumptions incorporated and resulting calculated projections. • Completion of Budget Balancing Worksheet identifying options for adjustment and resulting impacts. • Presentation and discussion of initial Budget Balancing Worksheet at June 17, 2008 Board meeting. • Subject to discussions held and direction received at the June 17, 2008 meeting commence preparation of information in support of recommendations to file 2008-09 Financial Estimates with the Ministry of Education.

  26. YCDSB BUDGET OBJECTIVES • Balanced Scorecard Outcomes • “Re-allocating and Accessing Resources to Achieve our Student outcomes” • “Leveraged use of our Resources” • Stability & Educational Excellence • Maintaining positive educational results • Fiscal Targets • Balanced Budget • Compliance with Legislation/Regulations • Compliance with Funding Envelopes Board Focus Ministry Focus

  27. BUDGET DISCIPLINE/CONSIDERATIONS ZERO SUM GAME • CANNOT afford to materially UNDERSTATE Expenditures OR OVERSTATE Revenues

  28. THE CHALLENGE KEEPING THE BALANCE FISCAL STUDENT RESPONSIBILITY vs. OUTCOMES

  29. QUESTIONS ?

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