Don Richards is the superintendent of Muskeg School Division (MSD) which comprises three large schools serving elementary, middle, and high school students.

Services are centralized into two departments: academic and administration. Each department is run by an associate superintendent and is required to operate within its assigned budget. Academic and administrative costs are allocated to the schools based on student enrolment. Don is wondering if there is a better way to allocate these costs as some of the principals are unhappy. Proposed budgets for the two centralized service departments are included in Appendix I.

Appendix I Central services budgets 2020-2021 central services financial budget Academic department: Salaries $640,000 Materials and supplies 260,000 Teacher recruitment and training 182,000 $1,082,000 Administration department: Salaries $450,000 Board and superintendent 206,000 Office supplies and computer operations 279,500 School bus service 1,343,750 Facilities (maintenance and utilities) 420,750 $2,700,000 $3,782,000 Allocated Fixed operating Enrolment cost costs Elementary school 900 $1,395,000 $400,000 Middle school 840 $1,302,000 $475,000 High school 700 $1,085.000 $ 450,000 Total 2,440 $3,782,000 $1,325,000 2020-2021 central services hours budget Service used by: Academic Administration Elementary Middle High Total department department school school school hours Service provided by: Academic 1,000 8,240 6,900 5,700 21,840 Administration 2,600 15,000 16,200 10,000 43,800 Total 2,600 1,000 23,240 23, 100 15,700 65,640