GRAEME COLLEGE Templeton Drive

P O Box 281

Grahamstown

6140

Telephone 046 – 6227227

Fax 046 - 6227491

Founded: 1873

12October 2017

GRAEME COLLEGE

NOTICE OF

GOVERNING BODY A.G.M. AND SGB 2018BUDGET MEETING

Dear Parents

You are cordially invited to attend the above meeting in the Templeton Hall at 17h30 onTuesday 31October 2017.

Agenda

1.Welcome-Mr K Watson

2. Apologies

3. Annual Report-Mr T Amos

4.Presentation of 2018Budget & Resolutions-Mr T. Amos

PROPOSED SCHOOL FEE STRUCTURE 2018
ANNUAL FEES / Grade 00 – 3 / Grade 4 – 7 / Grade 8 - 12
R19300 / R19600 / R21600
9% Increase / R1600 per annum
R160 per month / R1600 per annum
R160 per month / R1800 per annum
R180 per month

The following mandatory resolution will be presented

RESOLUTION 1concerns the approval of the budget

RESOLUTION 2confirms that the school will levy school fees

RESOLUTION 3concerns exemptions

RESOLUTION 4concerns section 38A payments

Please note:The audited Annual Financial Statements for 2016 and summaries of

the School budget for 2018 will be available for inspection 14 days

prior to the budget meeting (Please make an appointment with the finance office in this regard).

5.General

Your support of the school is valued and has a direct impact on your son’s approach to his school. Please make every attempt to be present. The meeting should end between 19h00 and 19h30.

Minutes of the Graeme College Budget Meeting held on Thursday 26 October 2016

  1. Welcome

Mr Watson welcomed everyone to the meeting and explained that the purpose of the meeting was to present the budget. Upon request by the floor, Mr Watson read out the minutes of the previous year’s meeting and copies of the minutes were made available to all.

  1. Apologies

Heinrich and Isabel Strauss, Francois & Lorenda de Klerk

  1. Matters Arising

Mr Gardiner proposed and Mr Wiblin seconded the minutes. The only matter arising was the clarification that each parent was entitled to vote. Mr Watson thanked parents for their input and explained that there would be several further discussions with parents in the future, and that Rhodes University was also willing to assist/be involved, with the result that all would be better prepared for such meetings. Mr Watson then handed the meeting over to Trevor Amos for presentation of the budget items, and thanked those involved in its preparation for their time and effort.

  1. School Budget Report – Trevor Amos

Mr Amos welcomed and thanked everyone. Mr Amos reminded all present that Graeme is a public school, meaning that it belongs to all of us. It educates 632 boys from Grade 00 – Grade 12 and has excellent boarding facilities. There are 36 teaching staff and 37 support staff. Of the 36-teaching staff, 22 are departmental posts. Of the 2016 Budget, 55.17% is attributed to staffing costs. Mr Amos thanked the staff, hostel staff, parents, Old Boys and boys for their contribution to the school. Mr Amos then presented the budget for 2017, and questions were welcomed from those present. The first question came from a parent who wanted to know if the school was on track regarding its budgeted income and why only six months were presented and not nine months (up to the current month). It was explained that those involved with the budget had been working on it for the past few months, so the budget had been covered thoroughly for the first six months, and the most recent months were still being worked on and that up to this evening, the school was on track with its budgeted income. The next question regarded the item ‘Current Income’ and it was explained that this included money from Makana Municipality and donations, such as those from Old Boys. One of the parents asked why the school was budgeting for bad debts. It was explained that in a perfect scenario, one should not have to budget for bad debts, but the reality is that there are bad debts, and therefore this is good budgeting. A further query was raised as to whether bad debts should not then be higher than projected when looking at previous years’ bad debts. It was explained that the previous bad debts figures had been carried forward for some length of time (accumulated) and that the school had actively focused on this and recovered large, long-overdue amounts. The school is confident in their anticipation that the current figure will not be that high in future.

A question was posed regarding what looked like an “overspend” in ‘Donations’, but it was explained that this was not an overspend, but rather that more donations had been received than expected, hence there were excess funds available for expenditure. It was asked what the ‘Academic Expenses’ figure included and it was explained that this item referred to costs related to each subject offered at the school, such as audio-visual equipment, library facilities and material, printing and stationery, physical education, technology and production costs, replacement of data projectors, laptops etc. excluding textbooks. It was further explained that these are ongoing annual expenses. There was a comment from the floor expressing the opinion that Graeme virtually had a zero budget to begin with. This was followed by a question regarding why the projected expenditure for next year is lower than the current year. This was answered to the effect that staff had been told their budgets had been cut and that they had to make a concerted effort to cut costs whenever possible next year, even if it means they must write more and print less. It was pointed out that the ‘Repairs and Maintenance’budget had also been cut back to a bare minimum and that even items like the fascia boards, which are in a state of disrepair, must wait.

The ‘Salaries and Wages’ figure was queried by a parent in respect of the fact that the projected increase was 7%, yet the figures seemed to represent an 8,5% increase. The difference of 1.5% was explained to be an expense for the re-allocation of the cost for a sporting coach post where such coach resides at the hostel. Previously the hostel had picked up the cost of this expense, but with the numbers of boarders having decreased by 40%, the hostel had suggested that they could no longer afford to cover the cost, particularly because the coaching of sport is a school item and not a hostel itemi.e. it was an issue of fairness and cost-cutting for the hostel – thus the cost is now carried by the school. The cost is for the board and accommodation of the coach, and not a salary to the coach. A member of the floor questioned what ‘Staff Expenses’entailed and it was explained that this represented the cost of staff training, headmaster training and general staff development - items such as CAPS training, projection, administrative staff, changes in social media, health and safety, etc. A teacher from another school present in the audience asked why the school didn’t make use of the CAPS books and tests to cut costs for teacher training. It was explained that Graeme College wanted to broaden the teaching experience to go beyond just reading the contents of textbooks (recognising learners’ emotional needs and challenges, new teaching ideas, styles, methods, materials). Parents were assured that this cost item is strictly monitored. It was suggested that Graeme College reconsiders this area for cost-cutting. Regarding textbooks, the question was raised as to why there is a large budget for textbooks for next year when this year’s budget for textbooks (from January to July) hasnot been spent yet. It was explained that buying textbooks from July to January will easily cost R200000.00. It was noted that if children return their textbooks as requested, it would be possible to cut some costs. It was further clarified that the R130000 budgeted for textbooks was for textbook items not ordered from the Department such as setwork books which are bought in addition to books from the Department. The school was asked how often they order new textbooks. It was stated that the school normally buys textbooks every three years, depending on the condition of returned books, changes in the syllabus, numbers required and the quality of the teaching material. It was explained that there is a policy in place whereby learners are charged with the replacement of lost or badly damaged textbooks. The school retains 95 – 98% of textbooks. Someone suggested that if a learner handed back a damaged book they should have to pay for a new one, but it was argued that this would not be fair practice as a lot of the textbooks are already damaged when received by a learner, and that the learner therefore cannot be held fully liable for the full price of a new book. It was explained that the staff do monitor the condition of the textbooks and order new ones only when necessary, but that the top-up issue was difficult to control. It was agreed that the school would re-look at its textbook management policy. There was a complaint from a lady present who had had difficulty making an appointment to see the financial advisor and Mr Watson apologised for this and invited the parent to come and see him. It was noted that more than 50% of the 2016 budget was for salaries and there was a request to “unpack” the amount, with queries arising regarding state paid teachers benefitting from additional top-up funds and regarding the justification of such a percentage increase. It was suggested that as the highest item cost, this needed to be looked at carefully and that Graeme College should be offering market-related salaries. It was stated that an entry level market-related salary was in the region of R208000 per year, and questioned why Graeme College had entry level salaries of R338000. It was explained that salaries were based on the qualifications and level of experience of the teacher. The school tries to peg salaries based on the Department salary scales. It assesses the qualifications and experience of the teacher to estimate what level that would be. This is monitored very carefully by the school and the differences in salary costs, compared to other similar schools, are minimal. There was a comment from a lady on the floor who suggested that Graeme College’s staff cost percentage at 50% was good in comparison to schools she was familiar with who are at 70%. It was noted that key factors in staff retention surround the opportunity for teachers to achieve promotion. Often teachers’ only opportunities for promotion are to apply for higher positions elsewhere, so it becomes imperative for great schools to hold onto great teachers, full of passion and energy, who often are not compensated enough. In trying to curb expenditure, an increase in the cost of salaries of nearly 9% is problematic for some, said a parent. She pointed out that the profile of a typical parent has changed significantly. The school responded by saying that the question the school must ask itself is what they can offer their typical customer, with consideration for what the typical parent can afford. It was noted by parents that Graeme has a diverse range of parents from the poorest of the poor to people who are wealthy enough to afford private education, but have chosen to send their sons to Graeme. There was further discussion regarding the view that textbook and academic costs were merely scratching the surface, but that the real challenge was the salary and wages expense. The gentleman suggested that the salaries and wages budget be frozen at R6.5million total and that the school come up with innovative ways to raise money. He suggested that staff retention should not have any attachment to monetary value but should be guaranteed by the climate and culture of the school. There was a further comment regarding Graeme not being accessible anymore due to its value. Mr Watson shared his passion for the school and his school leadership experience of twenty two years, emphasizing that the only way to cut salaries is to cut staff, which would result in Graeme changing the type of school it is. He spoke about the opportunity cost of options and choices and used a simple example of reducing the extra-mural activities to that of an “A-team” only for sport. Mr Watson advised parents that they need to decide what type of school they want for their sons. Thereafter the suggestion was made that salaries be disclosed. Further clarification was given by the school regarding the top-up percentages on top of salaries. This was explained to differ from teacher to teacher, and activity to activity. The criteria were related to qualification and ability and it was explained that very few teachers get a monthly top-up and that no teachers are paid any extra money for sports coaching. Mr Watson challenged the floor to find other schools where staff offer free sports’ coaching. There was then a further response from the floor regarding salary transparency whereby it was suggested that salaries are paid by members of the floor, who therefore have the right to know who gets paid what, to further understanding. Mr Watson said he would have to consider what could be divulged, with due regard for people’s rights to privacy. He did, however, state that the salaries paid to teachers at Graeme College are way below those of similar schools and expressed how minimal the salaries were in relation to what the staff do. There was a request that, in future, the budget be sent out fourteen days before the budget meeting. There was a further question regarding the post establishment allowance for Graeme for 2017. Mr Watson responded with a comparison of the post establishment of 31 in 2013, 28 in 2014 and 21 for 2017. He illustrated that if that was all the school had to rely on, from Grade 00 – 12 this would translate to very few teachers per grade, with no subject choice and no extra mural activities. Graeme College would have to close its doors based on the post establishment alone. Mr Watson is pursuing legal options, reminding parents that Graeme is a combined school – not just a high school or just a junior school. It was noted that the postestablishment allowance only came after the budget had already been drawn up. Mr Watson assured those present that he was addressing the issue. There was a request that it be recorded in the minutes that there would be a greater breakdown of teacher salaries, if possible, in the next year, particularly regarding the Section 38A posts, even if simply to reflect x number of teachers in the category of y amount, this just to provide a little more detail to lessen parents’anxiety. Thereafter, the proposal that school fees for the 2017 year increase by 7% was proposed by Mr Mike McCallum and seconded by Ms Lois Marechal. Votes in favour of the increase were 64. It was minuted that the house was happy with the increase of 7%.

  1. Resolutions

The resolution to increase school fees by 7% for 2017 was adopted.

  1. Acknowledgements

Mr Amos thanked the school Governing Body, Finance Committee, Staff and parents. Mr Watson then thanked Mr Amos and all present, stating that this was the longest and best attended meeting in his time at Graeme College thus far, whereafter the meeting was closed.