SUDBURY—Several factors have come into play that has allowed the Rainbow District School Board (RDSB) to close the 2023-2024 fiscal year with a surplus, after the board had earlier anticipated a projected deficit.
The RDSB ended the 2023-2024 fiscal year with a $2.2 million surplus, and increasing its accumulated surplus to $28 million. An increase in student enrolment and an increase in investment income along with a mild winter, led to the board surplus for the year.
The board had originally projected a deficit of $1.6 million for the fiscal year ending August 31. Then in January 2024 the board had updated its projections to a slight surplus of $330,000 because of the changes in enrolment.
Board trustees approved the financial statements for 2023-2024 at a meeting December 11 after a presentation by KPMG, its external auditors.
The board is projecting a deficit in the 2024-2025 fiscal year of around $700,000 and have indicated they will balance their books by pulling funds from its reserves.
Derek D’Angelo of KPMG, who presented the audited financial statement for 2023-2024 to the board at a meeting December 11, explained the board saw an increase in revenues of $240 million and expenses of $241.6 million. With an increased average daily enrolment at RDSB schools, an increase of 223 students, it provided for the increase in revenues. Mr. D’Angelo told trustees there was also an increase related to the provinces Bill 124 wage restraint legislation being found to be unconstitutional.
“There was an increase in instructional costs of around $33 million this year, ending the year at just under $200 million, with $31 million of that relating to the Bill 124 collective agreement increases, as well as additional staffing required to accommodate the increased enrolment,” Mr. D’Angelo told the board. He explained there was an increased administration expense of $374,000, again mostly due to salary increases related to Bill 124 and its agreements.”
Mr. D’Angelo also told the board there was a $300,000 increase in investment income, that brought in a total of about $1 million, and an increase of just under $500,000 increase in school fundraising revenue. Expenses increased by $37 million.
“You can see that the expenses will follow a lot of the funding increases that we saw above,” he told the board. He added that transportation costs increased by approximately $1.5 million due to cost escalations. On the positive side there were savings derived in board operations because of the winter of 2023-2024 being mild, and there were lower snow removal costs sustained by the board.