Administrative Procedure 500: Budget Development and Implementation

Education Act: Part VIII Compliance with Board Obligations; Education Act: Part IX Finance; Section 283 Chief Executive Officer; Education Act: Section 286 Duties of Supervisory Officers; Various Regulations under Education Act, pertaining to grants, fees and other monetary; Municipal Conflict of Interest Act; Municipal Freedom of Information and Protection of Privacy Act

Board Policy 01 Strategic Plan; Board Policy 10 Committees of the Board; Administrative Procedure (AP) 503 Accounting; AP 516 Procurement (Purchasing)

1. Annual Operating Budget

1.1 This administrative procedure sets out the process by which the administration and the board establish an annual operating budget based on Ministry of Education (Ministry) funding, attempting to meet the goals, expectations, aspirations and priorities of Avon Maitland District School Board (AMDSB).

1.2 The annual budget is a reflection of decisions made, a mechanism for allocating financial resources, and a means of managing activities in a planned and efficient manner.

1.3 It is a requirement of the Education Act that every board shall prepare and adopt estimates of its revenue, operating expenses and capital expenditures for each fiscal year.

1.4 It is a further requirement of the Education Act that every board shall ensure that the estimated in-year deficit complies to the maximum deficit as per Education Act (O. Reg 280/19).

2. Implementation Procedures

2.1 The administration and board recognize the importance of the budget in relation to the responsibilities, functions and goals of AMDSB.
2.2 The administration and board recognize the importance of public input as part of the budget process.
2.3 The following process will be followed when recommendations concerning the budget are presented to the board:

2.3.1 Establishment of a resource distribution plan to address current system goals;
2.3.2 A comprehensive review of projected revenues, operating expenses, and capital expenditures;
2.3.3 Identification of insufficiencies in attempting to meet system goals and obligations;
2.3.4 Identification and addressing of any inefficiencies which have become apparent; and
2.3.5 Identification of any provincial funding gaps, and potential impacts for AMDSB of proposed expenditure reductions intended to bridge those gaps.

2.4 In accordance with Board Policy 10 Committees of the Board, the Finance Committee will review the annual estimates budget prior to its presentation to the board for approval. The package subsequently approved by the board will be publicly available on the board website.

3. Timelines
The usual timeline for budget development, assuming no unusual circumstances, is as detailed below. The following timelines pertains to a single budget year, with multiple years’ activities likely to happen concurrently.

3.1 Activities pertaining to the upcoming budget year:

Time frame	Activity
September to January	• Senior Staff and Financial Services Department monitor budget issues, provincial and local • Senior Staff discussion of system vision, board priorities, funding assumptions and cost pressures, to be used as the basis for the preparation of the budget for the upcoming year
January to March	• Financial Services Department develops financial assumptions for upcoming budget, including potential impacts of financial year just completed • Student enrolment projections and resultant staffing projections prepared by the responsible departments, with input from school administration
March to May	• Discussions and planning meetings with Senior Staff, system and department leaders, regarding budget assumptions and projections for the various departmental budgets • Detailed budget development by Financial Services Department • Funding model analysis following release of Ministry funding materials • Financial Services Department prepares preliminary draft budget for Senior Staff review
May to June	• Review of annual budget package by Finance Committee • Review of Special Education budget by the Special Education Advisory Committee (SEAC) • Finance Committee recommendation of draft budget to board for approval, prior to submission to the Ministry • Compliant budget submitted to Ministry by June 30th

3.2 Activities pertaining to the current budget year:

Time frame	Activity
September to November	• Senior Staff revisit of system vision, board priorities, funding assumptions and cost pressures, to be used as the basis for revised budget • Student enrolment projections and staffing complement updated by the responsible departments, to incorporate October 31st actual information • Detailed revised budget development by Financial Services Department
December to January	• Financial Services Department prepares preliminary draft revised budget for Senior Staff review • Compliant revised budget submitted to the Ministry by December 15th • Review of revised budget package by Finance Committee • Finance Committee recommendation of draft revised budget to board for approval • Detailed capital budget reviewed by board, for the current construction year
January to August	• Ongoing monitoring of operating expenses and capital expenditures completed by Financial Services Department, including regular reporting to Senior Staff and department leaders • Monthly expense statements shared with board for information, effective with the period ending December 31st and through to the final board meeting in June • Full reconciliation of financial transactions completed by the Financial Services Department, and reviewed by external auditors, with the Ministry’s March year-end

3.3 Activities pertaining to the prior budget year:

Time frame

Activity

September to November

• Full reconciliation of financial transactions completed by the Financial Services Department with the closing of the fiscal year at August 31st • External audit conducted as prescribed by the Ministry and financial reporting standards • Review of draft financial statements August 31st by Audit Committee in November • Audit Committee recommendation of draft financial statements to board for approval • Compliant financial statements submitted to the Ministry by November 15th

 

4. Reporting to the Board

4.1 A status report on student enrolment will be presented to the board in November, for the current year. Summarized enrolment information will also be included with the presentation of the budget, revised budget and annual financial statements.
4.2 A report recommending the annual budget will be submitted by the Finance Committee to the board, in June.
4.3 A report detailing the revised budget will be submitted by the Finance Committee to the board, in January.
4.4 Status reports comparing year-to-date actual expenses with budget and percentage of expense to budget will be submitted to the board monthly, commencing as at December 31st of each year and continuing to the last board meeting in June.
4.5 A report recommending the annual financial statements for approval will be submitted by the Audit Committee to the board, in November.

 

Revised September 2022