Finances 2009/10







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2009 FINANCIAL REPORT & 2010 BUDGET
 
 
 
 

 
ANOTHER SUCCESSFUL YEAR - 2009

 
Despite the recession in 2009, the continuing strength of St Benedict's finances can be gauged from the fact that in 2009 we were able to spend R5 000 000 on developments at Parnassus Farm and R2 000 000 on upgrading College Academic Facilities (four science labs; smart boards and an additional College computer centre).  This was achieved without raising additional loans.  A long-term bank loan of R2 600 000 was arranged, however, to help finance the R3 600 000 purchase of a house in Dean Road (adjacent to the school site).  This house is intended as the residence for the new Headmaster to be appointed from 1st January 2011.  Also an earlier than scheduled start was made on the construction of our Cricket Centre/Sports Hall.  We had hoped to finance this from the advance payment of 2010 School Fees, normally received in November.  In the end, however, only R5 500 000 was raised out of an expected R8 500 000.  As a result payments on the construction of the Cricket Centre had to be financed by a temporary R2 500 000  increase in the bank overdraft. 

Poor cash flow was something of a problem in 2009, due to late-payment of school fees by a number of our parents, obviously suffering from the effects of the current recession.  Because the economy is expected to begin a slow recovery only in the first quarter of 2010, difficult times are expected to continue throughout 2010.  For this reason the Board of Governors decided on an average increase in school fees of only 6.9% for 2010.  However, the re-structuring of school fees to bring fees more into line with the actual costs of the different phases of education, has had the effect of spreading the increases unevenly, particularly because the FET Phase of Education (Grades 10 to 12) is significantly more expensive than the GET Phase (Grades 7 to 9). 

At this early stage, in it is hoped that by severely limiting expenditure in 2010 we will be able to have a similar modest fee increase (± 7.5%) in 2011.  To this end the Board of Governors has decided to limit capital expenditure in 2010 to:
     a) R2 000 000, for the upgrading of College Academic facilities (mainly Science, Biology and Geography)
     b) R3 000 000, for the completion of the Cricket Centre/Sports Hall and additional Boarding House facilities.
     c) R500 000 for furnishing and further infrastructure at Parnassus.

Parnassus is now up and running as a Conference Centre that will cater not only for the requirements of St Benedict's boys, but for other schools too and for outside groups.  It is hoped to turn the operating loss (±R550 000) at Parnassus into a growing source of income in 2010 and in future years.  [The eight brand-new up-market self-catering chalets are available for hire too to staff and parents - an ideal quiet week-end getaway!  Each two-bedroomed chalet is fully-equipped and serviced (including its own DSTV Television etc) and caters for four persons.  For additional information contact Bev Hall at 072-640-0217.]

Tony Dobson
Headmaster
 

 

2009 FINANCIAL SUMMARY / 2010 BUDGET
Approved Board of Governors - 09/07/10
 
 BANK OVERDRAFT 1st January:  Budget 2009  Actual 2009  Budget 2010  Planning 2011
        1,822,185         1,822,185         4,905,578

        2,453,231

           
 CONSOLIDATED INCOME/EXPEND  Budget 2009    Actual 2009    Budget 2010    Planning 2011 
 TRUST ACCOUNT      (14,001,603)      (10,619,597)      (18,734,744)      (21,456,253)
 BANK LOAN TO FINANCE ADDITIONAL PROPERTY       (2,800,000)       (2,600,000)    
 SCHOOL ACCOUNT       17,366,118       17,275,646       17,765,258       20,184,794
 CHANGE IN BALANCE SHEET ITEMS           186,861          (972,639)       (1,482,861)       (2,236,512)
   TOTAL             751,376         3,083,410       (2,452,346)       (3,507,971)
           
 BANK OVERDRAFT 31st December:   Budget 2009    Actual 2009    Budget 2010    Planning 2011 
        2,270,713         4,905,578         2,453,232       (1,054,740)
         
 TRUST ACCOUNT 
         
 TRUST RECEIPTS  Budget 2009  Actual 2009  Budget 2010  Planning 2011
 Trust Levy           (28,381,240)      (28,323,717)      (31,347,357)      (33,440,379)
   TOTAL        (28,381,240)      (28,323,717)      (31,347,357)      (33,440,379)
         
 TRUST EXPENDITURE  Budget 2009    Actual 2009    Budget 2010    Planning 2011 
 Additional property         4,000,000         3,651,120                     -  
 College Upgrade   Science Labs          1,000,000         1,330,189                     - 2,000,000
   Media Centre            560,000           384,464                     -
   Smart Boards           211,686           220,470           280,000
   School Hostel                     -           105,754           394,246
   Biology, Science, Geog                     -                     -           806,564
 Parnassus   Completion of Main Building         1,911,650         2,241,484   350,000
   Chalets                     -         2,387,928                     -
   Furniture & Equipment           100,000           592,684           125,000
   Infrastructure           150,000           850,829           200,000
   Kitchen Fittings & Equipment           300,000           300,574           175,000
   Completion of Swim Pool           132,966             89,935                     -
 Replacement Computers           220,000           226,580           250,000

    271,250

 Prep School  Auditorium Furniture & Equipment                 58,529  
 Cricket Centre/Sports Hall - Construction                     -         2,500,000         2,783,000  
   Netting / Flooring               520,000  
   Parking / Paving               180,000  Nil 
   Bowling Machines                 54,000  
   Other Furniture / Equipment                 88,000  
 Rowing Equipment             80,000             79,550           239,850           185,000
 Paving & Parking             150,000           156,925    
 Gymnasium Equipment           104,000             84,680             48,000             52,080
 Resurface Tennis & B'Ball Courts               300,000  
 After School Centre / Staff Day Room               140,000  
 Vehicle Replacements               3,600,000
 Other Improvements (2011 contingency)           200,000           227,453           122,236         3,185,000
Total Development         9,010,302       15,430,617         6,764,425         9,458,330
         
Loan Payments         1,367,829         2,273,503         5,848,189           925,796
         
Savings / Investments               1,600,000
         
TRUST (NET INCOME) / EXPENDITURE      (18,003,109)      (10,619,597)      (18,734,744)      (21,456,253)
         
 SCHOOL ACCOUNT 
         
SCHOOL INCOME Budget 2009  Actual 2009  Budget 2010  Planning 2011
 School Fees         (28,381,240)      (28,351,487)      (31,347,357)      (33,440,379)
 less Discounts etc          5,620,948         5,784,012         6,765,835         7,110,693
 Net Schoool Fees       (22,760,292)      (22,567,475)      (24,581,522)      (26,329,686)
 Sundry Income           (426,786)       (1,182,722)       (1,751,481)       (1,413,838)
TOTAL       (23,187,078)      (23,750,197)      (26,333,003)      (27,743,524)
           
SCHOOL EXPENDITURE  Budget 2009    Actual 2009    Budget 2010    Planning 2011 
 General Running Costs        10,447,056       10,761,006       12,016,075       12,875,263
 College Runnng Costs        15,236,337       15,265,272       17,277,627       18,855,921
 Prep School Running Costs          8,336,020         7,449,002         8,012,630         8,769,170
 Elem School Running Costs          4,509,129         4,758,243         5,252,943         5,782,455
 Computer Costs            479,417           675,112           467,166           506,875
 Parnassus            374,084           550,331             (9,019)            (74,870)
 Ravens Park            139,125           436,619           418,288           474,442
 Transport Costs          1,032,028         1,130,257           662,552           739,062
TOTAL        40,553,196       41,025,843       44,098,261       47,928,319
         
 SCHOOL (NET INCOME) / EXPENDITURE        17,366,118       17,275,646       17,765,258       20,184,794
           
 NOTE 1 ANALYSIS OF BANK LOANS  Budget 2009  Actual 2009  Budget 2010  Planning 2011
 Balance owed - January 1st        (2,127,163)       (2,465,111)       (3,580,613)       (3,059,922)
 Loan to purchase Additional Property       (2,800,000)       (2,600,000)                     -                     -
 Intererst on Loans           (356,800)          (414,273)          (322,255)          (307,102)
 Payment on Loans          1,023,856         1,898,771           842,947           842,947
 Balance owed - December 31st        (2,465,111)       (3,580,613)       (3,059,922)       (2,524,077)
         
 NOTE 2 ANALYSIS OF STAFF SALARIES etc   Budget 2009    Actual 2009    Budget 2010    Planning 2011 
College Staff Salaries       12,853,437       13,042,584       14,703,086       16,399,879
Prep School Staff Salaries         6,903,120         6,756,799         7,302,441         7,996,173
Elementary School Staff Salaries         3,670,130         3,813,905         4,175,317         4,571,972
Admin Staff Salaries         2,746,310         2,765,367         3,407,730         3,319,457
General Staff Costs           249,000           378,775           412,901           447,997
Maintenance Staff Salaries         1,908,523         1,963,179         2,197,655         2,406,433
After School Centre           264,397           261,470           438,557           480,219
Boarding Department           672,392           729,717           833,458           905,902
Computer Maintenance Staff           180,000           182,218           197,706           214,511
Parnassus           325,600           381,490           693,121           752,037
Ravens Park           179,260           190,717           196,238           214,881
Drivers           270,525           273,530           299,115           329,027
Gymnasium           440,000           458,171           550,243           597,013
        30,662,694       31,197,922       35,407,568       38,635,501
         
 NOTE 3 RAVENS GYMNASIUM   Budget 2009    Actual 2009    Budget 2010    Planning 2011 
 Income:   Memberships           (500,000)          (403,270)          (423,434)          (444,605)
   SBC Management Fee           (288,000)          (288,000)          (288,000)          (288,000)
   Other             (60,000)          (159,839)          (173,425)          (188,166)
  TOTAL            (848,000)          (851,109)          (884,859)          (920,772)
 Expenses:   Salaries            440,000           458,171           550,243           597,013
   Maintenance            100,000             38,265             60,000             65,100
   New Equipment              50,000           271,102           150,000           162,750
   Cleaning              36,000             22,877             24,822             26,931
   Other              50,000             34,278             37,192             40,353
  TOTAL             676,000           824,693           822,256           892,148
 (Profit)/Loss           (172,000)            (26,416)            (62,603)            (28,624)
         
 NOTE 4 PARNASSUS FARM  Budget 2009    Actual 2009    Budget 2010    Planning 2011 
 Income:   St Benedict's            (60,000)            (63,390)          (601,710)          (652,855)
   Other                     -                     -          (612,000)          (724,020)
  TOTAL              (60,000)            (63,390)       (1,213,710)       (1,376,875)
 Expenses:   Wages & Salaries            325,600           381,490           693,121           752,037
   Catering                     -                     -           252,570           274,038
   Eskom             34,484             15,247             60,000             60,000
   Maintenance              30,000             42,105             66,000             71,610
   Security                     -             11,680             10,000             10,850
   General             44,000           163,198             96,000           104,160
   Other                  27,000             29,310
  TOTAL             434,084           613,721         1,204,691         1,302,005
 (Profit)/Loss            374,084           550,331             (9,019)            (74,870)