Hout Bay Montessori Annual General Meeting

21 February 2019

Welcome by General Manager Mat Tyrrell

Agenda for this evening •  Welcome by General Manager (10 minutes) - Mat Tyrrell

•  Introduction of the board & role of the board (10 minutes) - Bronwyn Cruz

•  Board of Trustees report – 2018 Achievements & 2019 Key Activities (30 Minutes)

•  Finance – Sean Wilkins •  Community – Mat Tyrrell

•  PTA report (15 minutes) – Bronwyn Cruz •  Election (15 minutes) - Bronwyn Cruz

•  PTA members •  Generation Committee Report Back

•  Thanks You’s •  Q & A (10 minutes)

•  Expanded Nursery offering

•  Office moved

•  Improved Shade

•  Final tick for ISASA, will get full membership this year

•  Smooth transitions

•  Building personal development plans

Achievements 2018

2019 plans/challenges Considerations for 2019 •  Fully understanding the demand for this school, to ensure the best allocation of

resources. •  Completing a full SAMA Audit •  Membership to ISASA •  Community Committee designing a new bursary offering. •  Asking the tough question: How involved in the Hout Bay community is the school,

and what more can we do? •  Generation offer to purchase

Introduction to The Board Bronwyn Cruz (Board Chair)

The Constitution provides for the following Board Positions to which the SMT reports to:

Senior Management Team consists of the following:

The Current Board of Trustees:

Board of Trustees and Portfolios 2019 •  Chair Person of The Board: Bronwyn Cruz

•  Email: hello@bronwyncruz.co.za

•  Secertary of The Board: •  Vacant position - preferably looking for a legal mind

•  Finance: Sean Wilkins (treasurer – independent board member) •  email: seanw@sawfinadv.co.za

•  Education: Ally Connelly (independent board member) •  email: asconnelly@gmail.com

•  Talent: Mat Tyrrell •  email: mat@houtbaymontessori.co.za

•  Community: Nicky Bush •  email: nicky@symphonia.net

•  Marketing: Klara Loots •  Email: info@klaraloots.com

•  Chair Person of PTAC : Lisa Campbell (assuming you choose to vote her tonight) •  lisa@teamcampbel.co.za

•  Additional Member: Grant Cleghorn •  Grantonthego@gmail.com

Treasurer’s Report Sean Wilkins

Finance Committee

Sean Wilkins Treasurer

Mat Tyrrell

Main function: •  Oversight of the schools financial health

•  Setting up annual budgets •  Monitoring performance against annual budget

Grant Cleghorn

2018 Key Activities

•  Development of KPI’s that work for us

•  Improved Systems of Control, from payments through to stock control

•  Attending to the small stuff, shopping around for bank charges etc

2018 High Level Results •  Turnover:

•  Actual – R4.9 million •  Budgeted – R4.8 million

•  Student Numbers: •  Actual at End of 2018 – 111 •  Budgeted – 103

•  Surplus: •  Actual – R256K (provisional before deprecations and write offs) •  Budgeted – R68K

2019 Metrics •  2019 – High level forecast

•  Turnover:

•  Budgeted – R5.3 million •  Actual predicted to be – R4,9 million •  Average fee increase - +/- 8%

•  Student Numbers:

•  Budgeted – 110 •  Actual Start of 2019 – 106

•  Surplus / Loss:

•  Projecting a Breakeven year

KPI’s Turn over by Function of

Pupils 2016 2017 2018 2019

Nursery - School Fees R337 690,10 R318 836,00 R302 758,00 R573 677,00

Pre-Primary - School Fees R1 519 845,91 R1 224 044,00 R1 408 345,00 R1 273 492,00

Primary - School Fees R1 308 168,15 R2 055 917,00 R2 146 155,00 R2 072 865,00

Discounted Fees/ Invoice Timing -R65 907,00 -R143 465,00

Total R3 165 704,16 R3 598 797,00 R3 857 258,00 R3 776 569,00

Sales less school fees R915 380,00 R752 502,00 R750 000,00

Registration Fee R180 062,00 R238 250,00 R184 000,00 R180 000,00

Other income R774 707,84 R59 720,00 R118 740,00 R120 000,00

Total R954 769,84 R1 213 350,00 R1 055 242,00 R1 050 000,00

Total R4 120 474,00 R4 812 147,00 R4 912 500,00 R4 950 663,00

Total Expenses R4 108 349,00 R4 367 424,00 R4 656 468,00 R4 879 500,00

P/L R12 125,00 R444 723,00 R256 032,00 R71 163,00

School fees (% of total income) 76,83% 74,79% 78,52% 78,79%

Sales less School Fees R752 501,28 Other Income R118,740

Aftercare R100 823,53 Market Days R16 417,30

Lunches R432 204,80 MY School Rewards R14 569,00

Levies R94 250,00 Interest Received R19 951,00

Extra Murals R41 040,00 Fund Raising - Quiz Night R22 040,00

Funds raised R12 600,00 Prize Money R4 000,00

Other R28,125,25 Extra Mural Commission R20 013,00

Bursary Contributions R43 430,00 SETA, Bday books, Concert, Donations, Insurance claims R21 750,00

KPI’s Continued

2016 2017 2018 2019Nursery-SchoolFees R337690,10 R318836,00 R302758,00 R573677,00

Pre-Primary-SchoolFees R1519845,91 R1224044,00 R1408345,00 R1273492,00

Primary-SchoolFees R1308168,15 R2055917,00 R2146155,00 R2072865,00

R0,00

R500000,00

R1000000,00

R1500000,00

R2000000,00

R2500000,00

AxisTitle

Schoolfeesbysection

9%

10%

8%

6%8%

11%

8%

10%

5%

5%

11%

9%

12 12 12 1753 41 45 3838 57 54 51

2019 Budget

R0,00

R1000,00

R2000,00

R3000,00

R4000,00

R5000,00

R6000,00

Staff infrastruture Rent BalanceofCosts Activties Total

2017

2018

201922 21 21

Community Committee Mat Tyrrell

Community Committeemunity Committee

•  Montessori Enrichment Programme for Childminders for the second year running

•  Community Committee designing a new bursary offering. •  Asking the tough question: How involved in the Hout Bay community is the school,

and what more can we do? •  We need YOU please get in touch nicky@symphonia.net

PTA report back Bronwyn Cruz

Achievements 2018

•  2 Main Fundraisers:

-  Quiz Night – 14 March - A Fun evening which managed to raise R9,010

-  Comedy for a Cause - 4 Sept - Second year runing - this raised R13 630

Thank you •  Sports Day was held at the school for the first in many years and was a complete

success!

2019 plan – Key Activities

•  Continue to grow the 2 Fundraisers:

-  Quiz Night – 13 March

-  Bursary Fundraiser – 12th Sept

•  We would like to do a book drive for the school – more details to follow

•  Sports Day will be on the18th May

•  Annual Concert – 26th October

PTA - Voting of New Members Bronwyn Cruz

PTA committee

Mat

Justine

Klara

Bronwyn

Lisa

Anya Heath Bridget

Alex

Christina

Susan

Lisl

Benita

HBM Generations School Committee Bronwyn Cruz and Mat Tyrrell (board representatives) David Nicol and Danielle Timmins (parent body representatives)

Introduction

•  The committee members were appointed in November 2018 by the parent body and the board: •  Bronwyn Cruz and Mat Tyrrell (board representatives) •  David Nicol and Danielle Timmins (parent body representatives)

•  The committee serves the parent body and it has an independent and impartial advisory role with regards to the offer from Generation Schools to purchase Hout Bay Montessori.

•  The structure of the school is an Association, and therefore the decision to accept or decline the Generations offer, lies entirely with the parent body, not the Committee, board or school management.

•  Our intention is to provide you, the parents, with the requisite information to make an informed decision.

Workstreams

1.  Legal and governance

2.  Financial valuation & financial risks

3.  Due diligence

4.  Part & staff involvement

5.  Education

Status on workstream 1 - Legal & Governance •  Committee lead: David Nicol, supported by Mat Tyrrell

•  A Scope of Work (SOW) was drafted for the Request for Proposal (RFP) from 3 independent Attorney’s. The SOW includes: •  A response to the Generations Heads of Agreement detailing the key legal and

commercial terms as required by HBM •  The first draft of the Agreement to be presented to Generation Schools, •  The determination of the most suitable structure, that best protects the rights of the

parents and continues with a solid governance structure, •  Advice to ensure that a bursary fund is set up that only HBM students may benefit. •  The legal team have also been asked to advise on any voting process as

required by our constitution.

•  A legal entity has been appointed since the email was sent to parents last week 12 Feb

Status on workstream 2: Financial valuation & financial risks •  Committee lead: David Nicol, supported by Sean Wilkins (Treasurer)

•  A Scope of Work will be drafted and a Request for Proposal (RFQ) distributed. The objective of this will be to assess the financial value of HBM School. We would expect the valuation to be done upon completion of the draft legal Agreement, as the legal structure suggested may or may not impact a valuation.

•  The committee will identify and prioritise potential financial risks for Hout Bay Montessori. Any risks that will require further investigation will be flagged and we will request clarification from the appropriate expert with regards to these risks.

•  Sean Wilkins, independent board member and Treasurer of Hout Bay Montessori will be tasked to handle the financial risk aspects of our fact finding review.

Status on workstream 3: Due diligence

•  Committee lead: Mat Tyrrell, supported by David Nicol and Sean Wilkins

•  A report will be prepared providing information into Generation PTY its subsidiaries and parent body. We will review the past 3 Annual Financial reports of Trematon, looking at both the numbers and a close study of the governance of the company, highlighting the risks or benefits in being involved with Generation PTY.

Status on workstream 4: Parent & staff involvement •  Committee lead: Danielle Timmins, supported by Bronwyn Cruz for parents and Mat

Tyrrell for staff

•  All feedback received to date has been fed into the Legal workstream, to ensure that the Legal team is aware of non-negotiables, concerns and thoughts from parent body and staff.

•  Upon receipt of the draft Agreement from the legal work group, we will schedule working sessions with parents, and separately with staff, to stress test the Agreement and identify if anything need to be added, removed, edited or (de)prioritised.

•  Parents or staff who prefer an individual feedback session (over a group session) will be able to schedule one.

•  The working sessions are likely to take place in April-May 2019.

Status on workstream 5 – Education

•  Committee lead: Daniele Timmins, supported by Ally Connely (independent board member) as well as the heads of Primary and Pre-School.

•  The Education workstream will seek input from Montessori educators, both at Hout Bay Montessori and other Generation and non-Generation schools.

•  This will include any learnings pre, during and after the negotiation process at other Generation Schools. A risk workshop will be held to identify and prioritise potential educational risks for Hout Bay Montessori.

•  This will take place in March-April.

FEBRUARY 2019

Milestones and Expected Timeline

Parent/staffinvolvement

30 JUNE 2019

FirstdraftofAgreement

ready

Votebyparentbody(dateTBC)

AGM21/2

Legalfirmappointed

15/2

Decisionvaluationyes/no

Finalresponse

Generations

Headoftermsready(forresponsebyGenerations)andgo/no-go Initial

responseGenerations

APRIL 2019

Duediligencecompleted

Educationalrisk

workshop

Finaldraftofagreementreadytobesharedwithparents

Q&A

Thank You’s Mat & Bronwyn

Thank you for attending