No staff cuts expected after accounting error leads to $2 million deficit in Kamloops-Thompson school district – Kamloops News

The Kamloops-Thompson School District says there were no staff cuts due to an accounting error that caused a deficit of over two million dollars.

The error occurred in the district’s 2023-24 financial forecast, which double-counted some revenue.

It wasn’t noticed until July, but by then the district was already struggling with a supposed operating surplus of $3.37 million.

“We were unable to come before the board in time to curb spending because our spending was in line with our revised annual budget for 2023-24,” Trina Cassidy, SD73 treasurer and secretary, told Castanet.

The money was spent on things Cassidy said were necessary, including teachers, support staff, supplies and services.

“We spent money on our part of the expansion of Valleyview Secondary, we purchased portable equipment, classroom furniture, of course information technology, and then there was a vehicle for the maintenance team,” Cassidy said.

The error caused the school district to incur a deficit of $784,021 in its operating fund and $1,274,139 in its local capital fund.

“We have corrected our worksheet to better align with the presentation of the financial reports and the budget document,” Cassidy said.

Plan in motion

According to SD73’s 2023-24 audited financial statements, the costs associated with the steady increase in enrollment have resulted in existing working capital and local capital fund reserves being “significantly depleted.”

“Therefore, the district has decided to report the Local Capital Fund deficit and the portion of the operating fund deficit not associated with an existing reserve as a negative amount within internally committed reserves,” the audited financial statements state.

SD73’s operating fund reserves – which include local capital – have dropped to $1.45 million from $3.5 million at the beginning of the year. The $846,923 in the district’s local capital fund has been completely depleted.

SD73 Superintendent Rhonda Nixon said a repayment plan will be presented to the Board of Education on Monday, Sept. 23, that will result in budget cuts to address the deficit within one to two years.

“Because we have only a small, internally limited reserve and no local capital, we have to be very cautious and monitor the plan,” Nixon said.

“The goal is two years. But we are a large district. Things can happen that require an extension.”

Nixon said district staff would ensure that proposed cuts under the plan were not “too close to the students.” She said there have been no staff cuts as a result of the plan and none are planned.

“We looked for the cuts that would have the least impact,” Nixon said. “We hope that will be enough.”

Don’t be shy

Nixon said the school district is not afraid to cover the deficit and intends to be transparent about its repayment plan.

She said district staff have met with principals, managers and directors and an overview of the plan has been provided to district partners. Nixon added that audited financial reports were presented at the Board of Education’s public meeting last week.

“It’s not easy, but we’re functioning as a team and working together to try to solve a very difficult problem,” she said.

“We have worked extremely hard to get this up and running so quickly and we will continue to do so to make sure students settle in well and that is really important.”