Compliance - School Board Administration

School boards are required to keep their net administration expenses within a limit defined in the funding regulation, which is calculated based on total expenses reported in the year. This form calculates the administration limit, the net administration expenses, and determines whether the school board is in compliance with the requirement.

School Board Administration Expense Limit

The limit for school board administration expenses is calculated at items 1.1 to 1.

• Item 1.1 (Base School Board Administration Expense Limit): $2,200,000, plus

• Item 1.2 (Additional Allowable School Board Administration Expenses): 3.44% of total expenses for compliance purposes (Schedule 10ADJ, item 90, col. 30), plus

• Item 1.3 (Reduction to Limit due to Class Size Non-Compliance): If a school board is non-compliant with class size requirements under O. Reg. 132/12 (Class Size) for two or more years, a reduction to the limit is calculated here; the school board should redirect funds from administration to the classroom. The reduction is calculated as:

  • -1% of (Item 1.1 + item 1.2) after two years of non-compliance
  • -3% of (item 1.1 + item 1.2) after three years of non-compliance
  • -5% of (Item 1.1 + item 1.2) after four years of non-compliance

Item 1 (Total School Board Administration Expense Limit) is the sum of items 1.1 to 1.3.

Net School Board Administration Expenses

The net school board administration expenses are calculated at items 2.1 to 2.

The starting point is item 2.1 (Compliance - Total School Board Administration Operating Expenses). This is the total administration expenses from Schedule 10ADJ, col. 30, items 64 + 65 + 66.

The following amounts are then deducted from item 2.1:

• Item 2.2.1 (Enveloping Election Costs in Unorganized Areas): This value is loaded from Schedule 11A, item 14.7.

• Item 2.2.2 (Internal Audit - Total Enveloping Operating Expenses): For regional internal audit lead school boards, the internal audit expenses in the year are loaded from Data Form A2 Regional Internal Audit, item 3. These are excluded from the net administration expenses since they are separately enveloped.

• Item 2.2.3 (External Audit (Enrolment and/or Staffing FTE) - Operating Expenses): Input in-year expenses related to external enrolment or staffing FTE audits that were mandated by the ministry. School boards are selected for audit on a cyclical basis and will only report expenses here in the years that they are selected. Expenses related to a school board’s regular annual financial statements audit and specified procedures audit should not be included on this line.

Item 2.2 (Total expenses excluded from school board administration limit) is the sum of items 2.2.1 to 2.2.3.

The net school board administration expenses are calculated at item 2, as item 2.1 less item 2.2.

Compliance with School Board Administration Limit

Item 3 (School Board Administration Limit minus Net Expenses) is equal to item 1 less item 2.

• If item 3 is positive, the school board is compliant.
• If item 3 is negative, the school board is non-compliant.