Annual Facility Grant (AFG)

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a Annual Facility Grant (AFG) E F M A 2 0 1 8 C O N F E R E N C E Michael Nyikes,

1 a Annual Facility Grant (AFG) E F M A C O N F E R E N C E Michael Nyikes, Director John Woycheshin, Regional Director Capital Programs Unit, Capital Management Branch

2 What We Will Cover Annual Facility Grant (AFG) a. What is it? b. Expenditures c. HISTORY d. Capital vs. Operating e. Expenditure Plans f. Increases to AFG g. SD Questions? h. Ministry Questions?

3 What is it? The Annual Facility Grant provided by the Ministry may be used by a board of education to fund annual facility projects for the purpose of: maintaining and improving sites and buildings owned or leased by the board protecting the health and safety of students, staff and visitors at sites and buildings owned or leased by the board

4 Eligible Expenditure 12 categories of expenditures for annual capital projects: Roofing Mechanical System Upgrades Electrical System Upgrades Facility Upgrades Loss Prevention Functional Improvements Technology Infrastructure Upgrades Site Upgrades Disabled Access Asbestos Abatement Health and Safety Site Servicing

5 Ineligible Expenditures X Examples (using either operating funds or capital funds) New buildings X Additions to buildings X Full or partial demolitions of buildings X Sites or buildings (leases or purchases) X Portable classrooms (leases or purchases) X Equipment, furnishings, PCs, peripherals, servers X Vehicles or vehicular accessories X Capital planning documentation: LRFP, PIR, SPIR, PRFS, SPRFS, PDR, CPFA, APFA - all X

6 Click to change presenters 6

7 Ineligible Expenditures X /2 Vehicles or vehicular accessories X NO reverse chrome wheels on school buses!!

8 Ancient AFG History /1 1988/89 Special operating grant introduced as Facilities Shareable Capital Allowance Supplementary funding for routine maintenance to extend the life of existing facilities 45% required to address deferred roof replacements 1990 John W. starts working at EDUC

9 Ancient AFG History /2 1996/97 Re-named Annual Capital Allowance (ACA) Government changes source from one-year operating to debt-financed capital Certificate of Approval (COA) required for each school district 2005/06 Replaced by Annual Capital Grant (ACG) Again allocated as capital funding Funds still accessed through COA process Allocation calculated using each facility in a district s inventory: age replacement cost Small Community adjustment, where applicable

10 Recent AFG History 2008/09 Renamed Annual Facility Grant (AFG) Partially allocated as operating funds and capital funds Operating funds portion electronically transferred early in school year - July 1st to June 30th Capital funds portion issued as a single COA for upcoming fiscal year - April 1st to March 31st Allocation based on a formula using: elementary and secondary student enrolment replacement costs unused capacity (where a community cluster is eligible for Small Community Grant)

11 2008/09 Annual Facility Grant Formula AFG funding determined by: Previous year s FTE enrolment Replacement cost of the facility based on the number of FTEs Previous year s unused student capacity (only if the community cluster is eligible for the Small Community Supplement) Base AFG funding is calculated separately for elementary and secondary enrolments for each community cluster: (Previous year s FTE + 50% of previous year s Unused Capacity) x Expected Amount of Space Required per Student (m 2 ) x Base Budget Rate per m 2 x Cost Factor = Base AFG Funding per Community Cluster 1. Expected Amount of Space Required per Student varies, based on enrolment 2. Base AFG Funding per Community Cluster results aggregated - Total Base AFG Funding 3. Total Base AFG Funding is adjusted by a Location Factor, an Age Factor and a Low Enrolment Factor that are unique to each school district 4. Seismic portion is calculated separately for eligible districts using same method There will be a test on this

12 Funding History /1 Source: K-12 Capital Planning Resources webpage 12

13 1997/ / / / / / / / / / / / / / / / / / / / / /19 22 Years of Funding 140,000, ,000, ,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 ACA ACA ACA ACA ACA ACG ACG ACG AFG AFG AFG AFG AFG AFG AFG AFG AFG AFG AFG AFG AFG AFG Annual EDUC Amount Annual SD Amount Total EDUC Funds = $2.001 B. Total SD Funds = $1.972 B. 13

14 Re-writing History 14

15 я не шучу. 15

of operating funds may be withheld by EDUC for

board may expend both operating and capital

for repair or maintenance of existing sites or

16 Capitals vs. Operating 75% capital / 25% operating Portions of operating funds may be withheld by EDUC for provincial programs that apply to all SDs A board may expend both operating and capital funds for AFG projects AFG funds may be used for repair or maintenance of existing sites or buildings, including: schools administration offices maintenance shops bus garages teacherages other board-owned facilities full-day kindergarten modulars portable classrooms

17 Proposed Treasury Board direction requires each SD to provide EDUC with a project and spending plan Use AFG Expenditure Plan template to list all proposed AFG projects and budgets for upcoming fiscal year All funds - operating and capital - must be fully attributed to proposed AFG projects VFA requirement(s) to be closed by a proposed AFG project must be identified Submit all completed AFG Expenditure Plans for EDUC review to Damien Crowell, Planning Officer Following review and any required revisions, EDUC will issue single COA for capital portion of AFG funding

Completed AFG projects must be completed by March

in a following fiscal year After March 31 st, SD

fiscal year to EDUC, now including: Actual value

18 Completed AFG projects must be completed by March 31 st, as the COA for the capital portion of AFG funds will expire at that time N.B. Unspent capital funds may not be retained for use in a following fiscal year After March 31 st, SD re-submits its AFG Expenditure Plan for the past fiscal year to EDUC, now including: Actual value for each completed AFG project VFA requirements closed for each AFG project

Increase$ to AFG For Current Fiscal Year - 2018/19 $5 million in new AFG funding $4 million not required for NGN Total increase of $9 million allocated proportionally to all school districts

19 Increase$ to AFG For Current Fiscal Year /19 $5 million in new AFG funding $4 million not required for NGN Total increase of $9 million allocated proportionally to all school districts Recalculation using Annual Facility Grant Formula?? 18 losers Maximum reduction = -21.6% 4 no change 38 winners Maximum increase = +23.4% Augmentation maximale = +28.9% Hey, see $9M allocated proportionally bullet above

20 SD Questions? 20

21 Ministry Questions?

2008/09 Capital Plan Instructions

2008/09 Capital Plan Instructions September 2007 2008/2009 Capital Plan Instructions PART I: AN OVERVIEW The ongoing demand for investment in public infrastructure, and escalating costs for construction