Report to Committee of the Whole
June 6, 2011
subject: 2010-2011 Interim Financial Report and Forecast at April 30, 2011
originator:This report was prepared by Marilyn Marklevitz, Executive Superintendent of Business and Financial Services and Treasurer, Marion Jarrell, Controller of Financial Services, Sharon Uttley, Manager of Accounting Services, Wendy Jocques, Manager of Budget Services and Nick Landry, Manager of Enrolment, in consultation with Executive Committee.
purpose:
To present the Interim Financial Report for the period ending April 30, 2011 and to forecast the year-end financial position for the 2010-11 budget year
background:
It has been the established practice within the WRDSB to review expenditures on a quarterly basis in comparison with the approved budget.
As discussed in previous board reports, the financial reporting requirements have changed substantially from previous years due to the transition to the new Public Sector Accounting Board (PSAB) standards. Tangible capital assets must now be recorded. These assets are amortized over their useful life giving rise to an operating amortization expense. Capital contributions are deferred and recognized in revenue at the same rate as the asset acquired is amortized. The new accounting policies relating to tangible capital assets have been incorporated into the interim financial report.
status:
The Provincial Grants forecast has been undated to reflect the average daily enrolment resulting from the October 31 and March 31 count dates.
This year, as indicated in the Summary of Enrolment in Appendix A, we have experienced an increase of 134 average daily enrolment (ADE) over the projected enrolment used in the budget process for 2010-2011 in June. Since our grants from the Ministry are in large part determined by our enrolment, any variation has a significant impact on the Board’s financial position.
In reviewing the expenditures to the end of April 30 2011, our point of reference is a guideline that suggests spending should be at approximately 80% for classroom related expenditures and 67% for all other expenditures. However, there can also be significant variations in expenditures depending on associated circumstances.
In total, spending is at the 63.18% level (compared to 65.97% in 2010).
On individual lines, there are also variations from the anticipated norm due to timing issues and potential expenditure pressure. Seasonality also affects the timing of some expenditures such as Continuing Education where many of the expenses are related to Summer School and occur during July and August. Finally, it is important to consider that the spending represents eight months of operations and there are only two months of school remaining.
communications:
Information is provided to staff and members of the public as required.
financial implications:
It is projected that the board will be in a small unappropriated operating surpluse (0.2%)at the end of 2010-2011. This is based on March 31, 2010 count date for enrolments. Revenues, cost increases and pressurescouldchange as the year progresses.
system success plan:
This report relates to the Board’s financial position which is critical to the foundation for the System Success Plan’s areas of learning, caring and connecting with students, staff and the community at large.
recommendation:
No recommendation. For information only.
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