Prairie South School Division trustees got a look at the school division’s financial situation during their board meeting on Tuesday.
The first quarter financial report was presented that showed $20.8 million in revenue and $25.8 million in spending for a deficit of $5 million.
“This is a number that always worries me during the year because that deficit number usually looks pretty high as you go through the year because we're paying upfront then getting grants later. So, $5 million is, for me, quite a good-sized deficit, but I think we'll be fine for the year,” said Superintendent of Business Ryan Purdy.
The school division is projecting to be about $600,000 under budget with the current numbers before the adjustment for grants. After grant adjustments, the school division is looking to be $1.9 million under budget. It was noted that it is still very early in the year and those numbers may not be accurate.
The overall revenue after the first quarter is 22.36 per cent of the 2021-2022 budget. Typically, the school division is just under 25 per cent for this time of year.
Purdy said revenue is a bit lower than usual as the school division is still waiting on some funding from the provincial government.
“We have the $7.7 million for the new school, $2.4 million for PMR (Preventive Maintenance and Renewal) and another $500,000 roughly for community net that we wouldn't have received yet,” he said.
Expenditures are 28.54 per cent of the budget, which Purdy said is about where the school division wants to be.
“Most of our expenses are ten-month expenses, but we do have some for 12 months, but that 28.5 per cent is a pretty decent place to be at this point,” he said.
If the school division runs a deficit, it has $78.4 million in accumulated surplus and $18 million in unrestricted surplus to make up for the shortfall if needed.