For 2008/09, the school recorded a deficit from operations of $75,330 compared to the prior year surplus of $6,896. The increased deficit is primarily a result of reduced tuition fee receipts due to an overall reduction in school enrollment combined with a planned increase in teaching staff wages. The 2008/09 deficit was approximately $45,000 less than the board approved budgeted deficit primarily due to the Head of School’s effective management of both fixed and variable costs throughout the school year.
Tuition fees and government grants, net of bursaries, accounted for 87% of total receipts or approximately $606,000. In the previous year, tuition fees and government grants were approximately $676,000, a reduction of $70,000. Enrollment levels have not been consistent from year to year resulting in fluctuating revenues and budgeting difficulties. Over the past six years enrollment levels have fluctuated from a low of 48 (2008/09) to a high of 56 (2006/07).
Net receipts per student are impacted by the following: (1) tuition fees, (2) bursary levels, (3) government funding, and (4) the number of international students attending the school. In 2008/09, net receipts per student declined by approximately 4%, despite an overall tuition fee increase of $500, primarily due to an increase in the level of bursaries given out to support families in need.
Fundraising and donations accounted for 10% of total receipts for the year ended June 30, 2009. The annual giving campaign was initiated in 2008/09 and generated donations of $20,000; $16,000 of which were received in 2008/09 and $4,000 will be received at the beginning of 2009/10.
Based on the benchmark study provided by the Canadian Association of Independent Schools (“CAIS”), the median wage & benefits costs for CAIS schools is 69% of operating costs as compared to 65% for IPS. The majority of disbursements are comprised of fixed costs, including wages and benefits, rental and occupancy costs and cleaning and maintenance.
The same benchmark study indicates that median scholarship and bursary recipients as a percentage of enrollment for CAIS affiliated schools is 3%. In 2008/09 the number of scholarship and bursary recipients at IPS as a percentage of enrollment was 23% by comparison.
Overall, disbursements remained relatively consistent with 2007/08 with the exception of an increase in wages and benefits of approximately $29,000, partially offset by a decrease in program expenditures of $17,000. Bad debts of $3,600 relate to student fees owing at the end of 2007/08 that are no longer deemed collectible.
In 2008/09, the school made the decision to contract out its transportation needs as opposed to operating a school bus. This decision resulted in an annual savings of approximately $5,000.
The school spent $16,141 on computer equipment during 2008/09 as compared to only $1,458 in the prior year.
Based on the balance sheet as at June 30, 2009, the school has a net cash reserve of approximately $88,000.
Treasurer: Lisa Day
Committee Members: Michelle Gibson & Michael Simmonds