The Vernon School Board now has a policy on how to manage a financial surplus and how it transfers amounts between funds.
Board Chair Kelly Smith says all boards have been directed to have a policy to ensure clarity on how money is used.
“If there is any surplus it is used to absorb future one-time costs, unforeseen expenditures. And another thing we have to keep in mind, just in case
there’s declining enrolment, reduced revenue, we have to be able to cover those costs also.”
The policy is comprehensive, covering various funds, including funds from the sale of assets and transfers from other funds.
“It talks about the capital funds, the operating funds, how money can be moved from one fund to another. talks about funds that are closed, money cannot be transferred in or out of them.”
School Boards are not allowed to budget for a surplus.
Any surpluses would be dealt with at the start of the next school year.
It won’t be known until September if there is any money from this school year to be carried over.