On Thursday (November 30), the Rocky View School Board accepted audited financial statements for the previous fiscal year and approved budget amendments for this school year.

Director of Finance for Rocky View, Karyn Golem, explained that the financial statements are meant to demonstrate fiscal accountability of public dollars. The statements provide an account of the financial year beginning September 1, 2016 and ending August 31, 2017 and outline the revenue, expenses, assets, liabilities and equity positions of the school board.

This year's financial statements showed good news. The school board anticipated a deficit of $4,612,906, but once revenue and spending were balanced out, the actual deficit came to the much lower figure of $906,837. Golem explained the significant difference between the anticipated and actual deficit was due to much lower staffing costs.

"Costs of staff were lower than what we had anticipated, both for teaching staff and our support staff, but the most significant one was our support staff and their reductions in expected benefit cost, so overall costs for support staff and teachers was lower than what we'd anticipated."

Total revenue for the year came to $257.4 million, 3.6 percent higher than the year before and due mainly to increased enrollment and capital revenue recognized in plant operation and maintenance. Total spending for the year came in at $258.3 million.

Golem said overall, the lower deficit puts the division in a good financial position.

"It maintains a higher reserve level for us, so we are able to have flexibility in future years because we're not so limited in scope to what we have in the bank. It allows us to have more resources for future years."

Golem noted that the transportation department continues to face challenges, with less revenue generated and more expenses incurred in the past year. Golem said that situation is the result of growth in Rocky View and an attempt to maintain service levels that are becoming financially unsustainable. Costs continue to increase due to long-term contract agreements, increased routes and the inability to charge transportation fees that would offset costs.

After Trustees accepted the financial statements, they turned their attention to amending this school year's budget. Every year, the budget is set in the spring based on anticipated enrollment numbers, then amended in the fall based on actual enrollment. This year, projections for enrollment were very close to the eventual actual enrollment numbers, meaning the amendments to the budget were less extensive than in years past.

Golem said the main amendments included approving the Classroom Improvement Funds which will result in $2.6 million in revenue and expenses, $3.8 million in school generated revenue, an increase in transportation spending, and additional support staff positions.

At the end of the day, the amendments will result in an anticipated deficit of $2.5 million, close to the $2.3 million deficit anticipated in the spring budget. The budget amendments will result in a projected $274.2 million of spending and generate a projected $271.6 million in the 2017/2018 school year.

Golem said there are some significant challenges Rocky View faces going forward.

"We continue to struggle with meeting the needs of increasingly diverse students. You never know who's going to walk in the door and what they'll need to become effective learners. The transportation funding crises, you know, using that word should probably indicate that that's a fairly pressing matter, and if this budget comes to fruition, we will have no reserves left in our transportation department, so where and how will we rectify that situation."

 

Questions, comments or story ideas? Email us at news@discoverairdrie.com