An independent advisor has been hired to review the books at the Okanagan Skaha school district and the Ministry of Education has granted a deadline extension to submit its 2019-20 amended budget as trustees and staff grapple with its financial troubles.
Joan Axford, a professional accountant with over 35 years of experience, has been retained to assist the board with financial oversight of the current budget as well as the development of the 2020-21 budget.
Board chair James Palanio said key outcomes should include:
1. A simple explanation of the 2018-19 operating deficit
2. Clarification of the decisions in the amended 2019-20 budget, impact on the 2020-21 budget and a financial forecast to June 30, 2020
3. A report on operating reserves, school generated funds and local capital over the past three years
4. Provision of a Financial Literacy and Budget Development workshop for the board
5. Provision of budget consultation and communication strategies
6. Development of a budget implementation plan to ensure that all areas of the organization understand and can manage their area of budget responsibility.
The district is facing an $800,000 budget deficit.
The shortfall is being blamed on lower-than-anticipated enrolment numbers, a deficit from the previous year and an increase in staffing costs.
In a letter of memorandum addressed to the board of education on Feb. 24, secretary-treasurer Kevin Lorenz said the district has seen a decline in enrolment of over 100 full-time students from what was projected for this year based on previous enrolment numbers.
“In addition to this, the district started the year in a deficit position due to significant increases in staffing costs during the prior school year,” Lorenz wrote.
“These costs were the result of a number of factors including a more than 25 per cent increase in students with identified complex needs over the course of the year, in addition to a significant increase in substitute costs,” he said.
At its regular school board meeting on Feb. 24, trustees passed a motion by a 4-3 vote for an external audit.
It’s a shortfall that has many, including board members, worried about possible cuts and the impact on students.
The Ministry of Education agreed to provide the district with an extension from the Feb. 28 deadline to submit the 2019-20 amended budget.
The board will consider the third and final reading of the budget bylaw at its regular board meeting on March 9.
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