1. 1 Briefing Session on Application for School Fee Revision for the 2012/13 school year by DSS Schools Parent consultation and fee increase % SAS 1 Section SAS Division, EDB 23 March 2012

2. 2 Background (1) School fee is a source of income to provide additional facilities and support services for students (e.g. employing more teachers, reducing class size and improving school environment) in DSS schools. School fees collected can enable DSS schools to attain high educational standard and have sound financial situation.

3. 3 Background (2) Proposed school fees should be reasonable and acceptable. Various factors taken into consideration by REO colleagues during assessing school fee increase applications:  schools’ genuine need  schools’ actual income and expenditures  schools’ budget  schools’ financial situation  parents’ affordability  parent consultation

4. 4 Overview (2012/13 Fee Revision Exercise) No new requirement is introduced 2 templates, 1 Income & Expenditure Statement (applicable to a few school) and 1 example are added to the appendices/schedules file to facilitate schools’ preparation of budgets/fee revision applications as follows:  Chinese templates of “Essential Information to be included in the Financial Situation of the School” (Appendix 3) & “Parent Consultation Acknowledgement Slip” (Appendix 4)  Income & Expenditure Statement template for Boarding Facilities (Appendix 6)  Examples for setting the school fees for non-local students (Appendix 7)

5. 5 Parent Consultation (1) Schools intending to apply for fee increase : (a) of more than 8%; or (b) with total accumulated operating reserve as at 31.8.2011 exceeding the annual operating expenses of the 2010/11 school year (as reflected in the 2010/11 audited accounts) are required to properly consult all parents and seek consent from the majority of them. * For new applicants for P1 & S1 classes and S4 classes (for SSS with S4 or above levels only), to inform and explain to the parents concerned

6. 6 Parent Consultation (2) Schools are required to: a) issue to parents a printed letter/circular which contains the essential information on school’s financial situation; and b) collect acknowledgement slips (sample at Appendix 4) from parents; and c) consolidate parents’ views and address their concern (required to report in P.2 of Schedule 1)

7. 7 Parent Consultation (3) Essential information on school’s financial situation should include: 1. breakdown of financial implications by items of services/facilities 2. total additional funds needed for all the items 3. estimated deficit if school fee kept unchanged 4. estimated deficit/surplus after proposed fee increase 5. total operating reserve (in terms of no. of months of annual expenses as of 2010/11 Audited Accounts) Acknowledge Slip – should provide space for parents’ views/concern (if any) * For consultation with Parent Teacher Association (PTA), essential information on school’s financial situation should also be provided

8. 8 Financial Situation of the School (1) (Eng. template) Appendix 3

9. 9 Financial Situation of the School (2) (Chi. template) Appendix 3

10. 10 Example of Financial Information for Parent Consultation (School X) xxx

11. 11 Reporting of Parent Consultation (Schedule 1, P.2)

12. 12 Example of Reporting of Parent Consultation (Schedule 1, P.2)

13. 13 at the entry level (i.e. P1, S1, and S4 for SSS with S4 or above levels only)  the % of change is compared to the school fee of the same level of the previous school year (i.e. 2011/12). >8% at one/more level(s)  school is required to conduct full parent consultation at affected levels [e.g. with fee increase >8% at S3, required to consult S1 & S2 students of the current school year (i.e. 2011/12)] % of Fee Increase (1)

14. 14 % of fee increase (2) (School fee of lower form is lower) Calculation of fee increase % : Scenario 1 – if prior written notification has been given to parents that the existing S3 school fee level will be charged (i.e. $16,000) when their children proceed to the class level but afterwards fee revision is proposed, then  % increase = (17,000-16,000)/16,000 = 6.25% Scenario 2 - if parents have not been notified in writing that the existing S3 school fee level will be charged when their children proceed to the class level, then  % increase = (17,000-15,000)/15,000 = 13% Class LevelSchool Fee for 2011/12 s.y. Proposed School Fee for 2012/13 s.y. S2$15,000$16,000 S3$16,000$17,000

15. 15 % of fee increase (3) (School fee of lower form is higher) Calculation of fee increase % : Scenario 1 – if prior written notification has been given to parents that the same school fee level of the preceding class level (i.e. $18,000) will be charged when their children proceed to the next higher class level but afterwards fee increase is proposed, then  % increase = (19,000-18,000)/18,000 = 5.6% Scenario 2 - if parents have not been notified in writing that the same school fee level of the preceding class level will be charged when their children proceed to the next higher class level, then  % increase = (19,000-16,000)/16,000 = 18.75% Class LevelSchool Fee for 2011/12 s.y. Proposed School Fee for 2012/13 s.y. S2$18,000$19,000 S3$16,000$19,000

16. 16 Thank You !