North Vancouver School District
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Policy 710: Accumulated Operating Surplus
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Adopted: June 20, 2018
 

Policy

The Board of Education is committed to the principles of good governance, fiduciary responsibility and full transparency. Through prudent fiscal responsibility, which includes responsible management and specific utilization of Accumulated Operating Surplus in accordance with the purposes for which funds were intended, the Board demonstrates its commitment to these principles. This ensures the North Vancouver School District’s continued ability to meet the Board’s Statements of Mandate, Vision and Values.
 
Accumulated Operating Surplus is the cumulative excess of operating revenues over operating expenses. The Board considers an Accumulated Operating Surplus balance to provide a measure of resiliency to address annual fluctuations in funding, and address one-time costs or unforeseen expenditures. It cannot be relied upon to sustain on-going services.
 
The School Act requires that Boards of Education must annually submit a budget by June 30. Ministry regulations require that the budget be balanced, save for specific prescribed permissible deficits including:

i. Recognition of a liability for employee future benefits

ii. That portion of amortization expense which exceeds the amount of amortization of deferred grant revenue.

 The Board will undertake a thorough annual review of the Accumulated Operating Surplus balance, and clearly identify specific appropriations each year.
 

Administrative Procedures

 

Resources

Policy 106: Statements of Mandate, Vision, and Values

BC School Act

Financial Health Working Group Accumulated Operating Surplus Toolkit