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Company now in the black

Long derided as a drain on the New Westminster School District, the School District No. 40 Business Company is now one of the few shining lights in the district.

Long derided as a drain on the New Westminster School District, the School District No. 40 Business Company is now one of the few shining lights in the district.

The district, which recently announced a $521,237 deficit for its 2010/11 budget, would have been more than $1 million in the hole if it hadn't received $538,308 from the business company.

The business company, which received almost $1 million in loans during the past decade, has winnowed that loan amount down to $189,636, and, according to business company chief executive officer Brent Atkinson, the future is very bright.

"The business company continues to be pleased with the achievement it has attained to date," said Atkinson in his summary report to school trustees at the end of September. "Its role as the independent entrepreneurial arm of the school district is emphasized with the turnaround in revenue, bringing in significant positive cash-flow to School District No. 40."

The business company offers two programs in Wenzhou, Zhejiang Province, in China: the B.C. program at the Canadian Secondary Wenzhou No. 22 School and the Progressive Academic Canadian English (PACE) program at the Wenzhou Experimental No. 6 and No. 2 middle schools.

The growth of the B.C. program in Wenzhou can be seen in its increased enrolment figures.

In 2009/10, there were 185 students in the program, but that number had ballooned to 251 in the 2010/11 school year. Of those students, 122 were in Grade 10, 88 in Grade 11 and 41 in Grade 12.

Atkinson pointed out that in the 2011 class, students attained higher grade point averages than in previous years, with eight students earning honours. One graduate is currently attending the Sauder Business School at UBC, and graduates have been placed at universities in B.C., Canada, the United States and Belgium.

Both Atkinson and New Westminster school superintendent John Woudzia attended graduation ceremonies this past June in Wenzhou. While there, the two also learned that the school has gained approvals to build a new wing, which will also include a gymnasium.

"Ground breaking will start this fall, and they anticipate that the building will be completed by school opening in 2013," said Atkinson.

The success in the PACE program can also be seen in the enrolment numbers.

"For school year 2010/11, the actual total number of students for the PACE program increased to 1,700 and is being offered in two campuses at Wenzhou," said Atkinson. "We have more than 10 students from last school year's PACE program now enrolled in the B.C. program."

The business company's operations in China are staffed by nine instructors in the PACE program and 13 teachers and a principal in the B.C. program.

For the future, the district is planning to have its $189,636 deficit fully paid off in the 2011/12 fiscal year and is looking at expansion.

"The business company in 2009/10 paid $168,558 interest to School District No. 40 and $9,991 more for interest in 2010/11. In addition, the business company pays $8,054 annually in lease costs and $10,000 in administrative costs.

"If these amounts, which were not initially contemplated in the funds advanced to the business company, were included in repayment, the loan would have been fully repaid. We fully expect increased staffing and operating costs for 2011/12 . but anticipate full repayment of the loan, as well as providing for additional revenue to SD40."

Atkinson also pointed out the district recently completed a risk assessment management and business plan and is anticipating expansion to a second offshore location in the near future.

That location may be in South Korea, according to Atkinson's presentation.

"On our recent trip to Seoul, we met for the second time with the education officials of the Seoul Metropolitan Government on their request to do a presentation for the District of Gangnam. . We have indicated to our Korean hosts that the business company does not have the capacity to enter into a joint venture with significant capital at this time. Currently, communications are still ongoing to explore other avenues for collaboration with our contacts in Korea. There is interest from the business company to expand beyond our existing operations."

alau@royalcityrecord.com

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