Education, Sport and Culture Report for Minister |
Subject: | Fees for Provided Fee Paying Schools – Victoria College and Victoria College Preparatory School |
Exempt Clause: | | Date: | 30th January 2010 |
Author: | Assistant Director - Finance |
1. Background
1.1 Article 13A of the Education (Jersey) 1999 Law requires that:
“Each year, subject to the approval of the Committee, the governing bodies of Jersey College for Girls, Victoria College and their respective preparatory schools shall set fees for the provision of education in those schools.”
1.2 Further to decisions of the schools Governing Body the approval of Minister for Education, Sport and Culture has been sought for an increase in respect of the academic year 2010/11, as follows:-
School | 2009/10 Request | 2009/10 Approved | 2010/11 Request | % increase |
Victoria College | £1,372 | £1,358 | £1,398 | 3% |
VC Preparatory | £1,372 | £1,358 | £1,398 | 3% |
1.3 A letter from the Chairman of the Board of Governors dated the 26th January 2010, attached Appendix A, presents the case for the increase in fees. The letter details in particular the following:-
§ the fee proposals are based on a cumulative budget reduction from 2011 agreed as part of the 2010 Annual Business Plan process;
§ there is a perception that Property Holdings are unable to maintain the fabric of the school to required standards due to a lack of funding;
§ the need for the school to continue to maintain high standards;
§ a recognition that the schools have been able to raise private funds to carry out capital refurbishment and that the school has been able and will need to continue to commit funds to this initiative.
1.4 In approving the fee increase for the academic year 2009/10, the Minister will recall that the Chairman had been informed in a letter dated the 20th May 2009, ‘… so that we may engage in a full and proper discussion and inform parents of the outcome in a timely manner, I would ask you to submit your formal request in respect of fee proposals for 2010 as soon as possible, or should you wish to discuss your proposals beforehand please do not hesitate to contact me.’
1.5 The Chairman had been further informed in a letter from the Minister dated the 2nd December 2009, in confirming the budget reductions that will apply to the schools from 2011 that ‘… it is my intention to work closely with the school governing body to ensure future fee levels are set at an appropriate level in order to minimise the impact such a reduction may have. As Financial Directions dictate that any fee increase which exceeds 2.5% will require the approval of the Minister for Treasury and Resources, I would ask that any proposal to increase fees should be submitted well in advance to ensure that an informed decision can be made allowing sufficient notice to be given to parents’.
1.6 On this basis, representatives of the schools have been invited to meet with the Minister and Officers of the Department, to provide them with an opportunity to supply supplementary information to present their case for the proposed increase in fees. This will further improve the process of communication in agreeing the annual proposals for fee increases.
1.7 The schools have provided a high level summary of the budget position for 2010 to 2011 and these are attached at Appendix B. These indicate an operating surplus in respect of Victoria College for 2010 of £130,838 and for 2011 of £148,736 however the school has suggested that it is likely that it will be necessary to make further contributions to the Foundation appeal. For the Preparatory School, the surpluses amount to £32,726 and £67,554.
1.8 The Jersey Retail Price Index increased by 1.7% to December 2009.
1.9 The Minister will be aware that the carry forward of school under spends have been supported by the Department without restriction and in respect of Victoria College and the Preparatory School amounted to £131,305 and £54,825 respectively in 2008 and £32,650 and £25,440 in 2009.
1.10 The Minister will recall that during discussions relating to the 2009/10 fee proposals, the schools expressed some concern at what they considered to be an inadequate level of property maintenance. Since that time, discussions have taken place with Property Holdings at officer level and they have reiterated their position, that due to a lack of funding, the priority is to deal with matters that relate to health and safety.
1.11 Financial Direction 4.1 Increases in States Fees and Charges states:
‘Where a fee or charge increase exceeds the above limit [2.5%] per annum it will be the responsibility of the requesting Department to ensure that the approval of the Minister for Treasury and Resources is gained before any increase is levied; and the requesting Department provides the necessary justification for the level of increase.’
2. Recommendation
The schools have been required to accommodate the budget decreases from 2011, recommended by the Comptroller and Auditor General, and agreed as part of the 2010 Business Plan process. The Chairman of the Governing Body had previously indicated that collaboration with the other fee-paying secondary schools continues to increase. On the basis that the schools are able to provide further evidence that this is the case at the meeting in February, it is recommended that the Minister approves the fees set by the Governing Body of Victoria College and Victoria College Preparatory School.
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