Prairie South School Division (PSSD) is in good economic shape based on data from the first quarter of the 2020-21 school year, even though its budget projects a year-end deficit.
The school division finished the 2019-20 school year — which ended Aug. 31, 2020 — with a surplus of $562,095, which bumped up the total accumulated surplus to $77.3 million, according to the first-quarter report.
PSSD also saved several million dollars in operating expenses after schools closed from mid-March to June. However, the Ministry of Education required all school divisions to use up any of the pandemic-related savings they had accumulated. So, Prairie South spent $1.6 million on its school buses and $1.2 million on one-time building projects.
For this school year, Prairie South has budgeted revenues of $87.1 million and expenditures of $89 million, leaving a deficit of $1.8 million that the accumulated surplus will cover.
“Compared to where we should be at this time of year, we’re actually in a very good position,” business manager Ron Purdy said during the January board of education meeting.
From Sept. 1 to Nov. 30, 2020, the school division received $22.1 million — or 25.42 per cent of budgeted revenues — and spent $25 million, or 28.12 per cent of budgeted expenses, he continued. Most of the school division’s expenses are over 10 months versus 12 months, so it faces a regular yearly deficit.
Purdy then summarized revenue categories in the first quarter.
Operating grant funding was almost on target, with $20.2 million received during the first quarter. Purdy noted this is an increase of $1.2 million over last year due to COVID-19-related funding. Furthermore, the joint-use school money has not yet been received, while funding for preventative maintenance and renewal (PMR) of buildings comes in June.
Tuition and related fees were $116,999, which was 50 per cent of the budget.
School-generated funds were $453,322, which was 30 per cent of the budget.
Complementary services revenues — such as funding for nutrition programs and early learning — were $221,133, or 35.37 per cent of the budget.
External services revenues were $899,455, which was 25.23 per cent of the budget.
“Other” revenues were $251,956 or 48.52 per cent of the budget. Purdy noted the division received a rebate from the Workers’ Compensation Board of $49,000, while PSSD also received a refund from the ministry after switching to a new student information system.
With first-quarter expenses, governance was at $107,507, or 23.32 per cent of the budget. Purdy indicated that the board hadn’t spent much money yet on professional development. However, $20,000 was spent on the November school board election, which was included in this area.
Administration expenses were $799,894, which was 27.78 per cent of the budget. While that looked high for the first quarter, the school division paid in full its accounting software and software licences fees, said Purdy. Furthermore, 80 per cent of the audit was paid by the end of November, while $90,000 was spent to install new windows at the board office.
Instruction expenses — which includes salaries — were $17.3 million, or 29.25 per cent of the budget. All student-related trip expenses were down due to the pandemic, said Purdy, while classroom expenses were up after the division bought more Google Chromebooks to help students during the shutdown.
Plant (or building) expenses were $3.3 million, or 24.62 per cent of the budget. Purdy reminded board trustees that $1.2 million in pandemic-related expenses had to be spent in this area.
Transportation expenses were down compared to Q1 last year — $1.6 million vs. $1.7 million — since there have been no field trips or sports travel. Should trips recommence, added Purdy, this area could increase by the end of the year.
The next PSSD board meeting is Tuesday, Feb. 2.
