In-Year Deficit Elimination Plan

This input form is available for school boards to report an In-Year Deficit Elimination Plan (IYDEP), if required, in the Estimates and Revised Estimates cycles only. The Compliance Report - Balanced In-Year Position Requirement (Compliance Report) is used to determine if an In-Year Deficit Elimination Plan is required (see calculation of item 1.0, below). If required, the plan must be approved by the board of trustees.

School boards reporting a new In-Year Deficit Elimination Plan are required to eliminate the in-year deficit within two fiscal years of the last day of the current fiscal year. If the school board is reporting an updated In-Year Deficit Elimination Plan because it required a plan for the previous fiscal year, the adjusted in-year deficit must be eliminated within one fiscal year of the last day of the applicable fiscal year. Please refer to the In-Year Deficit Elimination Plan document stored in the EFIS Reference Data folder for more details and scenarios on the IYDEP requirements.

Item 1.0 - Is an In-Year Deficit Elimination Plan Required?

If Compliance Report item 2.3 is less than zero, and items 3 and 4 are “No”, an IYDEP is required. There are two possible values calculated at item 1.0:

• “Yes” is calculated if a school board has an in-year deficit for compliance purposes (i.e. Compliance Report item 2.3 is negative), but the deficit is within the lower of 1% of the board’s operating allocation and the prior year accumulated surplus available for compliance (Compliance Report item 4 is “No”) and the school board is not reporting a third consecutive in-year deficit (Compliance Report item 3 is “No”).

• “No” is calculated if:

  • a school board does not have an in-year deficit for compliance purposes (Compliance Report item 2.3 ≥ 0),

  • a school board is in a multi-year recovery plan (Compliance Report item 1 is “Yes”),

  • a school board may require a deficit approval for an in-year deficit exceeding the lower of 1% of the board’s operating allocation and the prior year accumulated surplus available for compliance (Compliance Report item 4 is “Yes”) or the school board is reporting a third consecutive in-year deficit (Compliance Report item 3 is “Yes”).

Item 1.1 - Is the Board Submitting a New In-Year Deficit Elimination Plan?

If item 1.0 indicates that an IYDEP is required, item 1.1 indicates whether a New Plan or Updated Plan is needed.

• A New Plan is required if both item 1.0 is ‘Yes’ and the school board is not reporting an in-year deficit in the previous fiscal year (Compliance Report, item 3.2 ≥ 0).

• An Updated Plan is required if item 1.0 is ‘Yes’ and the school board is reporting an in-year deficit in the previous fiscal year (Compliance Report, item 3.2 < 0).

Item 1.2 - If an In-Year Deficit Elimination Plan is required, has the plan been approved by the board?

If an In-Year Deficit Elimination Plan is required, the school board must confirm that the plan has been approved by the board of trustees by selecting “Yes” from the drop-down menu. Please note that if “No” is selected from the drop-down menu or it is left blank when item 1.0 = “Yes”, warning message Warning_IYDEP_1 will be triggered.

Item 1.3 - Compliance - In-year Surplus (Deficit)

This value is loaded from Compliance Report, item 2.3.

Tables A and B

Table A and Table B refer to the plan for the fiscal year following the applicable year and the next fiscal year, respectively. In column 1, boards must describe changes to either revenue or expense, as applicable, and report the amount in column 2. (Note: Use of accumulated surplus is not a measure that will eliminate the in-year deficit).

The school board must show planned changes to revenue and expense over the prescribed period to demonstrate elimination of the adjusted in-year deficit. If item 1.0 = “Yes”, indicating that an IYDEP is required, then the following warning messages will be evaluated:

• Warning_IYDEP_2 will be triggered if “Updated Plan” is at item 1.1 and the planned in-year surplus/(deficit) at item 2.0 is negative.

• Warning_IYDEP_3 will be triggered if “New Plan” is at item 1.1 and the planned in-year surplus/(deficit) at item 3.0 is negative.

Please note that if either Warning_IYDEP_2 or Warning_IYDEP_3 is triggered, then the school board will have a non-compliant deficit and will be non-compliant (Compliance Report item 5 is “Yes”). The school board will need to submit an in-year deficit approval request for the non-compliant in-year deficit. Please refer to the In-Year Deficit Approval Form section of the instructions for details on submitting a deficit approval request.