8001.2 Accumulated Operating Surplus

POLICY NO.:            8001.2                                   DATE APPROVED: April 30, 2018  

SUBJECT:                Accumulated Operating Surplus

Policy

The Board of Education is committed to providing a transparent process for the allocation of an operating surplus in order to provide services to students, the transfer of operating surplus to other funds, and the accumulation of operating surplus for future use.

An accumulated operating surplus provides the school district with the ability to plan and sustain services to students for a period longer than a single budget year.

 

 

Definitions:

Operating Expenses” are the total of all expenses in the Operating Fund as disclosed on Schedule 2 of the audited financial statements.

 Operating Surplus (Deficit), end of year” is the total of Total Operating Surplus (Deficit) for the year and Operating Surplus (Deficit), beginning of year as disclosed on Schedule 2 of the audited financial statements.

Operating Revenue” are the total of all revenue in the Operating Fund as disclosed on Schedule 2 of the audited financial statements

 “Total Operating Surplus (Deficit) for the year” is the Operating Revenue less Operating Expenses, after considering Net Transfers (to) from other funds as disclosed on Schedule 2 of the audited financial statements.

References: School Act, Part 8, Division 8 Accounts and Audits, Sections 156 to 166

Regulations:

  1. The Board will approve the Operating Surplus, end of year, annually with the approval of the audited financial statements prepared in accordance with Section 157 of the School Act.

 

  1. In the event that an Operating (Deficit), end of year occurs, the Board will seek the approval of the Minister of Education in accordance with Section 156(12) of the School Act.

 

  1. Internally Restricted Surplus – Operating Fund, reported as Operating Surplus (Deficit), end of year reported on Schedule 2 of the audited financial statements, will be disclosed in a Note to the financial statements in three categories:

 

  • Internally restricted due to the nature of constraints on the funds.

 

  • Internally restricted due to anticipated unusual expenses.

 

  • Internally restricted due to operations spanning multiple fiscal years.

 

  • The amount of Internally Restricted Surplus – Operating Fund allocated to Future Years’ Operating Budgets at the end of a fiscal year should not exceed five percent (5%) of actual Operating Expenses for that year.

 

  1. The Superintendent of Schools has the authority to approve Appropriations of Internally Restricted Surplus – Operating Fund up to and including $20,000. Any such appropriations will be reported to the Finance & Audit Committee.

 

  1. Any transfer of funds between the Operating Fund, Special Purpose Fund, and Capital Fund not included in the Annual Budget, or Amended Annual Budget will be considered by the Finance & Audit Committee and approved by the Board of Education.

 

Administrative Procedures:

  1. Annually, prior to October 31, the Finance & Audit Committee will receive a Surplus Analysis Report on the Operating Surplus (Deficit) end of year.
  • The report will be as at the end of June of the same year.

 

  • The report will include a ten year history of Accumulated Surplus from Operations including, at a minimum, total amounts:

 

  • Appropriated for future budgets

 

  • All other appropriations

 

  1. Appropriations of Surplus will be disclosed to the Board in the monthly Board Financial Report prepared by the Secretary Treasurer or designate.

 

Originally Approved: April 30, 2018

Revised:                                                                                                                   Policy No. 8001.2

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