Quote:
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Going into the 2019/20 budget year the CBE had $9 million (or 0.7% of annual budget) in uncommitted operating reserves at a time of financial uncertainty following the election of a new government. Operating Reserves were being drawn down to supplement unfunded program delivery. Other Alberta School Districts averaged reserves of approximately 4% of annual budget at that time. While this level of operating reserves had been listed as a high risk to the CBE within annual Budget Assumption Reports prepared by Management, no actions were undertaken to ensure that reserves were re-instated to an appropriate level based on the size of the overall CBE Budget.
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Reading the 1 page executive summary of that report is reasonably short but this jumped out to be as just incompetence. A.7% contingency isn’t not sufficient.