1 Briefing Session on Application for Fee Revision for the 2013/14 School Year by DSS Schools Submission of budget and financial information MA Section Finance Division, EDB 15 March 2013

2 Submission of Budget and Application for Fee Revision Call letter issued on 7 March 2013 Deadline for return - 30 April 2013 Incomplete information in the school’s fee revision application may lead to delay in processing by EDB

3 Schools Proposing Fee Revision Complete declaration in Appendix 2 by school supervisor with school chop. Provide details in (1) Schedule 1 – Information Sheet on Parent Consultation (2) Schedule 2a – Income & Expenditure Statement (3) Schedule 2b – Breakdown of Other Operating Expenses (4) Schedule 2c – No. of Classes, Enrolment, Fee Income and DSS Subsidy – Fee Revision Percentage of Local Students / Non-local Students NEW

4 Schools Proposing Fee Revision (Cont.) (5) Schedule 2d – Provision for Fee Remission / Scholarship Schemes (6) Appendix 7 – Income and Expenditure Statement for boarding section (if applicable) Submit documents as required in Appendices 3 & 4 (Parent/PTA consultation). Excel file is provided to facilitate compilation.

Schools Proposing Fee Revision (Cont.) Points to note when completing the Schedules and Appendices. 5

6 Budget Preparation Financial projections made in the applications for fee revision should be reasonable and well-justified. Due care should be exercised to ensure that every income / expenditure item is derived on a sound basis to avoid over-estimation of operating deficits / under- estimation of operating reserves that lead to unnecessary fee increase. No accumulated deficit is allowed under government funds. 2011/12 audited figures in Schedule 2a and 2b should agree with the 2011/12 audited accounts.

Budget Preparation (Cont.) 2012/13 original budget (OE) should follow last year’s budget submitted for fee revision for 2012/13 (Schedule 2a and 2b). - Including “ Operating Reserve / (Deficit) brought forward from previous year(s)” 7

8 Income & Expenditure Statement – Schedule 2a Income and expenditure for boarding section in Appendix 7 and private class should not be included. Additional information to be provided : -Amount to be Grandfathered (subject to EDB’s approval) -Reserve for Construction, Maintenance and Upgrading of Above- standard Facilities -Information from Statement 3 of the 2011/12 SY audited accounts is relevant. NEW

9 Number of Classes, Enrolment, Fee Income and DSS Subsidy – Schedule 2C (P.1 and 2) Change in table layout – Information of local students to be provided in columns (B), (D) & (G) while information of non-local students to be provided in columns (C), (E) & (H). Additional information to be provided in columns (J) “Actual enrolment at the end of month preceding the date of fee application eligible for DSS subsidy” is required for calculating the estimated DSS subsidy for 2012/13 revised estimates. NEW

10 Provision for Fee Remission/Scholarship Schemes – Schedule 2d (Cont.) Points to note: - To be completed by schools proposing fee revisions - Not required for schools without fee revision Computation basis - Gross school fee - Projected DSS unit Subsidy Rate for 2012/13 An example of computation is provided in Appendix 6.

11 Provision for Fee Remission/Scholarship Schemes – Schedule 2d (P.2 and 3) (Cont.) Notes: 1. The projected enrolments in the 2013/14 budget are used. 2. If a DSS school charges a school fee between 2/3 and 2 1/3 of the DSS unit subsidy rate, then for every additional dollar charged over and above 2/3 of the DSS unit subsidy rate, the school should set aside 50 cents or 10% of gross school fees charged before deducting any concession, whichever is the higher. 3.The amount required to be set aside for fee remission/scholarship schemes has to be calculated by class level. 4.The school should also set aside an amount from school fee income from non-local students to provide fee remission / scholarship schemes. The calculation method stated in Note 2 should be followed. Please note that when different fee levels are set for non-local students not eligible for DSS subsidy, the calculation of provision for fee remission / scholarship schemes should be made in a separate row.

12 Boarding Section To complete separate Income & Expenditure Statement in Appendix 7, irrespective of proposing school fee revision or not. Common expenditure for the whole school (e.g. staff expenses, repairs & maintenance) - apportion on appropriate bases - disclose apportionment bases in the statement

13 Schools Without Fee Revision (i) For schools without boarding section: Complete financial and enrolment information in Appendix 1 only (no need to complete the supporting schedules, e.g. other operating expenses, provision for fee remission/scholarship schemes). (ii) For schools with boarding section: Complete Appendix 1 and Appendix 7. (iii) The Income and Expenditure Statement of private class, if any, should not be included in Appendix 1.

14 Schools Without Fee Revision : Submission of Appendix 1 Additional information to be provided : -Amount to be Grandfathered (subject to EDB’s approval) -Reserve for Construction, Maintenance and Upgrading of Above- standard Facilities -Information from Statement 3 of the 2011/12 SY audited accounts is relevant. Certification by school supervisor with school chop. NEW

15 Other Points to Note Students not eligible for DSS subsidy - Non-local students (except those specified in EDBC 20/2012) - Private class students 2011/12 audited accounts (called by EDB on 30 Nov 2012) should be submitted on or before the deadline: 28 Mar Late submission will lead to late processing of fee revision applications.

16 Other Points to Note (Cont.) For the former aided/Caput school admitted to the DSS, please provide the revised estimates for the 2012/13 school year and the budget for the 2013/14 school year for ex-aided/ex-Caput classes and DSS classes in separate sheets.

17 For enquiries: Thank You ! School administration operations/parent consultation requirements Respective SSDO of the school Finance-related matters Management Accounts Section (Tel: )