AGM March 2014 2013 A scorecard Thanks Choices Questions A - - PowerPoint PPT Presentation

AGM March 2014

2013

• A scorecard
• Thanks
• Choices
• Questions

A scorecard

Strategy, planning & finance

Leadership Teaching Governance Happiness Success Fees Numbers Investment

100% pass rate Per strategy, maintain below EPI Continue to grow First time started > 500 Sustained investment in academic and sport facilities

Strategy & planning

“When Yesterday, Today, and Tomorrow meet, only Today gets to shake hands

• twice. That makes Today twice as

important as the other two. But it also means that Today must be careful, because who knows whether Yesterday or Tomorrow washed their hands after going to the bathroom.” ― Jarod Kintz

1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 Upgrade sport facilities

• n campus

Future Debenture Scheme 60 “A”s 30 students 1 = 9 “A”s Stakeholder survey Revenue exceeds expenses School opens 54 students First elected board 03 Power Struggle Mission Governance Strategy Building alterations Stakeholder visioning workshop 96/97 Power Struggle “Old” V “New” Period of “ownership --- management change 2nd head GN Acting head WS 3rd head CW MM Caretaker head HS 4th head 5th Chair MMB 1st Matric class Building alteration Master plan New classrooms Pool Mini-Astro 6th Chair PW

Then and now : some context and the lessons we need to learn

Gr 00 Gr 000 Ford Review SK 5th head Staff climate survey Oakhill Future Project starts Oakhill Future workshop New play areas; upgrade classrooms; seating at pool; upgrade school entrance, new parking; paint buildings; greening quad, road etc; new science lab, music room; new tuck/ coffee shop; land search and building planning 2nd master plan; New admin

• ffice &

classrooms The Odyssey All but 1 X2 streamed New sports campus iMAD Centre Library Boarding Staff pension, medical aid & annual conferences introduced 1st head AG 1st chair AvN State subsidy ends First State subsidy Stake- holder survey Umalusi Gr 0 21 in 2013 1st Hockey tour 1st Music In the blue 4th Chair LP 2nd Chair FdG 3rd Chair AJ (?) SM Acting head ADAM Act- ing head FF

Purpose

• Great schools, Patrick Basset said, create

and perpetuate an intentional culture shaped by the adults… rooted in universal values of honesty and caring … and relentlessly oriented toward achievement.

• He spoke of a school which had the most

wonderful purpose --- to inspire each (child) to fulfil (his/)her promise and to better the world.

How as a board have we done this?

Feel the wind And set yourself a bolder course Keep your heart As open as a shrine You’ll sail the perfect line

Bob Segar’s “In our time” closed 2009 agm … Strategic drivers - Stay true to ourselves, Have clear vision, and be bold

Our building blocks: 2007-2014

• Are we meeting objectives? Sailing that line?

– Be true to ourselves and our philosophy … the joy of learning, children at the centre, the Oakhill way – Be a place where children excel as individuals / community

• Investment in academic excellence and facilities … nearly R30m!
• Creating a place where children can be happy … where they prepare for life,

think for themselves, take responsibility for actions

– Be financially sustainable

• Drive demand and efficiency … to grow numbers & income (to reinvest)

– Be an integral part of broader Knysna-Plett-Sedgefield – Provide value to all stakeholders – fees > parents; total education > students; compensation > teachers; engagement > community

(Unhelpful) Things to think about

• Pleasing all of the people all of the time

– Choice, opportunity and differences

• Beware those hiding behind “what others

say” --- Innuendo and rumour easily destroy; separate

personal agenda from school agenda

• Actions have consequences! (it’s what we

teach our children!)

– Teachers leave, management preoccupied – Energy moves from + to -

Leadership

• We said in 2010 --- “Great leadership at

school is a key enabling factor”

– Shane + teachers have transformed Oakhill – “Relentlessly pursuing excellence” – head creates excellence environment that celebrates achievement & collaboration and inclusivity, and that cares and nurtures … – Some external observations

• 3/10 Prof Jansen’s strategies to change a school = head >

visible leadership; social entrepreneurs; act on external environment

• Oakhill does well on Bassett’s 25 features of great schools

Teachers

• We said in 2010 --- “The quality of an

education system cannot exceed the quality of its teachers”

– All teachers now on pension, medical aid – Salaries > … still concern, area of focus – New teachers have enriched the school

• Attracting many and quality applications

– Learning through tours, conferences

• “Travel is fatal to prejudice, bigotry and narrow mindedness

…things cannot be acquired by vegetating in one little corner

• f the earth all one’s lifetime.” Mark Twain

Governance

• Audit / Umalusi
• Constitution will need to be amended to be

compliant with new legislation, needs

• Independent board members
• Procurement policy
• Balancing bureaucratic process and
• utcomes … we have a school to run

– Remember: board and other parental support is voluntary and in a few cases involves 100s of hours a year!

Happiness and success

• “When I was 5, my mother told me happiness was the

key to life. When I went to school, they asked me what I wanted to be when I grew up. I wrote down ‘happy’. They told me I didn’t understand the assignment…I told them they didn’t understand life.” / John Lennon

• “Happiness is the key to success. If you love what you

are doing, you will be successful.” / Albert Schweitzer

• Passion + aptitude = The Element / Ken Robinson
• “Life isn't about finding yourself. Life is about creating

yourself.” / George Bernard Shaw

Oakhill is a happy place. Our children tell us that. But happiness and success are not necessarily the same thing! …and stretching is part of learning, finding success and happiness

Happiness and success

2008 2009 2010 2011 2012 2013 5 Yr Ave

Candidates 25 24 29 30 50 40 34.6 % Passed 100% 100% 100% 100% 100% 100% 100% Distinctions 33 40 55 59 79 70

Distinctions / Candidate 1.3 1.7 1.9 2.0 1.6 1.8 1.8

Analysis of Standard and Tertiary Admissions Level of Pass Bachelor's Degree 22 22 27 26 47 35 31 Diploma 2 1 2 4 3 5 3 HC 1 1 NSC % of Bachelor's Degree 88.0% 91.7% 93.1% 86.7% 94.0% 87.5% 90.8%

% of Bachelor + Diploma 96.0% 95.8% 100.0% 100.0% 100.0% 100.0% 99.4%

Over the past 5 years, in a class that has on average doubled in size, we have achieved a 99,4% Bachelor & Diploma pass

Oakhill fees and EPI

How Oakhill’s fees compare

Numbers

We opened 2014 with 500+ students

Numbers, and where from

Investment

On a like-for-like[1] basis over the past 6 years, 60% of all capital investment has gone into academic infrastructure

Year Project / Investment Amount

R '000's 2009 Hall refurbishment R 100 Classrooms and new Administration block R 4,000 Sports office R 100 2010 Refurbishment of classrooms R 1,000 Coffee Shop and tuck shop R 500 Pathways and play areas R 1,000 Landscaping R 500 Staffroom refurbishment R 80 2011 Parking areas and Classrooms R 700 Prefabricated classrooms R 800 Pool area refurbishment R 100 Staff accommodation R 100 2012 Refurbishment of music classroom R 100 2013 Purchase of new land R 3,800 Construction of new fields R 3,000 Construction of Astroturf R 6,000 Infrastructure: roads, sewerage, water, workshop R 1,000 2014 Road infrastructure R 50 Music Centre R 1,000 Art, Drama, Library and classrooms R 5,000 Repair land slip R 300 Clubhouse R 300 IT upgrades R 360 Total R 29,890

Academic Campus projects and infrastructure (excluding busses) Sports Campus projects and infrastructure

[1] – Like-for-like basis excludes the cost of the OSC land

Finance review and forecast

• Finance Portfolio

– Financial Review 2013 – Student Retention – Funding infrastructure – what we need, and where we are now

• Capital Structure

– Loan Funding Program Update (Debentures) – Your Infrastructure ‘Wish List’ – Choices?

Student Numbers

– Average Student numbers flat at 471 (2012: 479) – Net Revenue per student up 6.9%

Operating Surplus (Before Finance Charges)

– Operating Surplus down to R0,34m from R1.94m.

Revenue

– Total Revenue up 6.6% to R26,1m – Net Revenue up 5.3% to R21,9m

Expenses

– Total Expense growth up 13,6% to R23,9m – Salaries/NR at 73,2% within benchmark

Finance headlines 2013

Audited income statement 2013

Audited Income Statement

2011 2012 2013

% R '000's R '000's R '000’s Change

Total Revenue 21 222 24 521 26 134

6,6%

Net Revenue (inc. Other Income) 20 104 22 948 24 208

5,5%

Expenses 17 776 21 007 23 866

13,6%

Operating Surplus 2 328 1 941 342

(82,3%)

Finance Costs (520) (597) (1 014)

69,8%

Surplus / (Shortfall) 1 808 1 344 (672) Student Numbers 461 479 471

(1,7%)

Source: Oakhill School, Audited Financial Statements as at 31 December 2013, Prepared by Mazars.

Revenue growth into 2013

• Net Revenue up 5,3% to R21,9m
• Average Net Revenue per student up 6,9%
• Planned, responsible growth continues

Detail 2011 2012 2013 % Ch R '000's R '000's R '000’s

Revenue 21 222 24 521 26 134 6,6% Bursaries, Scholarships & Rebates (3 200) (3 683) (4 238) 15,0% Net Revenue 18 022 20 838 21 896 5,3% Net Revenue / Student 39 093 43 503 46 488 6,9%

Expenses in 2013

• Total Expense growth up 13,6% to R23,9m
• Salaries/NR at 73,2%, well within benchmark

Detail 2011 2012 2013 % Ch R '000's R '000's R '000’s

Total Expenses 17 779 21 007 23 866 13,6% Admin & Educational Expenses 4 557 5 805 6 472 11,4% Salaries 13 220 15 202 16 030 5,5% Finance Charges 520 597 1 015 70,0% Salaries as % of Net Revenue 73,3% 72,9% 73,2% 0,4%

Audited balance sheet 2013

(1) – Ongoing investment in the Academic Campus. (2) – Loan Funding Program Source: Oakhill School, Audited Financial Statements as at 31 December 2013, Prepared by Mazars.

Audited Balance Sheet (FY)

2011 2012 2013 VAR

% R '000's R '000's R '000’s Change

Non-Current Assets (1) 16 031 16 682 20 122 3 440

20,6%

Current Assets 1 635 1 998 4 994 2 996

150,0%

Total Assets 17 667 18 680 25 116 6 436

34,5%

Reserves 8 866 10 200 9 528 672

(6,5%)

Non-Current Liabilities (2) 5 945 5 664 12 234 6 570

116,0%

Current Liabilities 2 856 2 816 3 354 538

19,1%

Total Liabilities 17 667 18 680 25 116 6 436

34,5%

Finance review and forecast

• Finance Portfolio

– Financial Review 2013 – Student Retention – Funding infrastructure – what we need, and where we are now

• Capital Structure

– Loan Funding Programme Update (Debentures) – Your Infrastructure ‘Wish List’ – Choices?

Loan funding program update

[Per AGM March 2014]

Loan Update Debenture / Loan Details Target Updated Banked A R 5,000 Zero R 8,500,000 R 200,000 R 195,000 A Special Zero R 2,500,000 R2,250,000 B R 10,000 75% of Prime R500,000 R 330,000 C-1 R 25,000 Prime + 0,5% R1,000,000 R 500,000 C-2 > R500,000 Prime + 2,5% R 7,000,000 R 6,500,000 C-2 Special 10% fixed R 6,000,000 R 6,000,000 Donations

• R265,000

Loan finance from seller of property R 3,800,000 R 3,800,000 R 3,800,000

Total (Original target of R13m) R 12,300,000 R 21,000,000 R 19,840,000 Surplus / Shortfall R 1,160,000

Infrastructure ‘wish list’

[Oakhill Sports Campus (OSC)]

Note: All costs Exclusive of VAT

Project Detail Memorandum Revised Committed Feb 2012 Dec 2013 Mar 2014 Property Oakhill Sports Campus R 6,100,000 R 3,800,000 R 3,800,000 Rezoning, Fees and Master Planning R 400,000 R 400,000 Sub-Total Property R 6,100,000 R 4,200,000 R 4,200,000 Sports Access & Preparation R 1,500,000 R 3,900,000 R 2,700,000 Campus Cricket Oval / Hockey Field Combinations R 3,400,000 Ablutions / Sheds R 60,000 R 400,000 R 400,000 Swimming Pool / Polo Pool R 1,500,000 R 1,500,000 Professional Size Astro-Turf R 7,000,000 R 6,400,000 R 6,300,000 Tennis / Netball Courts Combination R 2,800,000 R 2,800,000 Clubhouse Facility R1,500,000 R 400,000 Sub-Total Sports Facilities R 16,260,000 R 16,500,000 R 9,800,000 Total Sports Campus Investment| 2012 - 2017 R 22,360,000 R 20,700,000 R 14,000,000

Note: All costs Inclusive of VAT

Infrastructure ‘wish list’

[Oakhill Academic Campus]

Project Detail Memo Revised Committed Feb 2012 Dec 2013 Mar 2014 Academic Electrical and Water infrastructure R 300,000 R 300,000 Campus Renovate Existing "Art Block" R 450,000 R 5,500,000 R 5,500,000 IMAD Centre R 8,000,000 Road Access and Security Gate R 800,000 R 800,000 Music Centre R 1,000,000 R 1,000,000 Little Oaks Upgrade R 1,750,000 Top Field Rehabilitation R 800,000 Hall Renovation / Tuck Shop Upgrade R 250,000 Sub-Total Sports Facilities R 9,550,000 R 10,400,000 R 6,500,000 Boarding Boarding House "Phase 1" R 1,400,000 Ref Strategy Sub-Total Boarding House R 1,400,000 R 0 R 0 Total Academic Campus Investment| 2012 - 2017 R 10,950,000 R 10,400,000 R 6,500,000

Investment in infrastructure

These investments are required to support growth and have a 25 year + view

Year Project / Investment Amount

R '000's 2009 Hall refurbishment R 100 Classrooms and new Administration block R 4,000 Sports office R 100 2010 Refurbishment of classrooms R 1,000 Coffee Shop and tuck shop R 500 Pathways and play areas R 1,000 Landscaping R 500 Staffroom refurbishment R 80 2011 Parking areas and Classrooms R 700 Prefabricated classrooms R 800 Pool area refurbishment R 100 Staff accommodation R 100 2012 Refurbishment of music classroom R 100 2013 Purchase of new land R 3,800 Construction of new fields R 3,000 Construction of Astroturf R 6,000 Infrastructure: roads, sewerage, water, workshop R 1,000 2014 Road infrastructure R 50 Music Centre R 1,000 Art, Drama, Library and classrooms R 5,000 Repair land slip R 300 Clubhouse R 300 IT upgrades R 360 Total R 29,890

Academic Campus projects and infrastructure (excluding busses) Sports Campus projects and infrastructure

• It’s important to note that these

facilities have a 25 year payback period, each student enjoys this access for less than half that time, therefore everyone needs to contribute. (73% of revenue is required for staff = limited resource)

• Funding is a combination of cash

surplus, donations and debt.

• Excluding the cost of OSC land,

R10,4m is going into Sport and R16,0m into Academic projects.

• The ability to do future projects

will be a function of fund raising efforts, growth in students and the school’s strategy going forward.

2013>4|Choices still relevant!

• Option 1 - Continue on constrained path

– We can continue to invest slowly based on surplus – OUTCOME 2014 | No longer applicable as Option 2 became a reality

• Option 2 – Parents make debenture happen

– We require better support of the current debenture programme – OUTCOME 2014 | Successful, despite a disappointing level of participation. A substantial value came from very few families

• Option 3 – Implement Compulsory Debenture

– Structured as with many private schools (e.g. Cornwall Hill)

• Option 4 - Consider Privatisation

– Have been approached by corp. financier (Curro / ADvTECH) – CONSIDERATION 2015+ | In order to achieve ongoing sustainability OPTION 3 and/or 4, or a blend, might need to be considered

Game changers …

• Boarding school = access to market outside K-P-S
• New independent school in K-P-S (at < fees)

Thanks and welcome

• Shane and Robyn
• Teachers, Dawie, Sharon and James
• Finance, administration, our drivers, Phil

and the Estates team

• The board … farewell Eric (6 years), Guy

(6 years + founding teacher!) + Laurent

• Parents – planning, fund raising, 21
• Welcome to Karine Trollip

Questions & answers