Following the completion of the Georges P. Vanier seismic upgrades in October, the school district determined they had gone approximately $1,450,000 over budget.
The $33.1 million upgrade project started in 2016 and was completed in phases, including adding additional classrooms, specialized spaces such as a new auditorium and an Aboriginal education room, and relocating the library. The project also included upgrading the schoolB次元官网网址檚 mechanical and electrical systems that were nearly 50-years-old. Approximately $32.8 million for the project was provided by the Ministry of Education and around $1 million was from the school district.
According to SD71 secretary-treasurer Nicole Bittante, the school district did not realize they were over budget until the project was completed as they thought all expenditures had been accounted for.
B次元官网网址淲hile this overspend was not identified until the project was completed, it was thought all along that the budget allowed for these expenditures,B次元官网网址� said Bittante. B次元官网网址淒istrict staff were reconciling all of their amounts to the original budget. In the meantime, the original budget hadnB次元官网网址檛 been adjusted for various items. So it appeared during the term of the project that the project was on schedule and on budget.B次元官网网址�
Bittante outlined the areas where the overspending happened, with the most significant portion being the GST.
B次元官网网址淭he original construction budget back in 2015 that was provided to the construction company did not include GST, however, the budget should have included the non-rebatable portion of GST,B次元官网网址� she said. B次元官网网址淭hereB次元官网网址檚 a portion that the district pays and then receives back in a rebate.B次元官网网址�
The non-rebatable portion of GST was a cost to the district of approximately $477,000.
Other areas where there was overspending included a portion of the director of operationsB次元官网网址� salary and some wages for a custodian which were not reduced from the construction budget, totaling $196,000.
In 2017, the gymnasium walls required repairs due to a safety concern, and while the Ministry provided $220,000 to address the issue, the fix still went $117,000 over budget.
The costs for the initial project planning, totaling approximately $152,000, were also not removed from the construction budget. Another $40,000 was listed as B次元官网网址渙ther balancing factors,B次元官网网址� and the project went an additional $465,000 over budget as this amount was not covered by the risk reserve.
B次元官网网址淭he $33 million included a $4 million risk reserve. It wasnB次元官网网址檛 guaranteed funding, it was an amount that was awarded through the ministry, but it was an amount that we had to apply for and there were criteria attached to it,B次元官网网址� said Bittante. B次元官网网址淚 think the issue is that we, in our budget, gave the $4 million to the construction company and it was spent.B次元官网网址�
The school district was only able to access approximately $3.5 million of the $4 million with the rest being a cost to the district.
Bittante clarified that the overspending was not a reflection of the contractor as they came in on budget. Their budget just should have been smaller.
B次元官网网址淭hey came in on target with money that they were given, but we werenB次元官网网址檛 able to access all the funds.B次元官网网址�
She adds that increased oversight will occur on all future capital projects to ensure any overspending is identified and taken care of immediately.
At TuesdayB次元官网网址檚 meeting, the SD71 school board voted in favour of transferring $1,450,000 of unrestricted operating surplus to cover the overspend.
