B.C. Education Minster Margaret MacDiarmid appointed B.C. Comptroller General Cheryl Wenezenki-Yolland to examine the Vancouver School Board's financial performance. (CBC)

A special adviser has issued a damning report on the Vancouver School Board's financial situation, blaming poor governance, lack of strategic planning, and missed opportunities.

But the VSB's chair says the report is disappointing and not helpful.

Education Minister Margaret MacDiarmid said the report showed the school board was in a strong cash position and its current financial circumstances could have been avoided had the board appropriately managed its resources.

"I am troubled that the board's governance practices have led to poor choices that have diverted millions of dollars from the classroom," said MacDiarmid.

"The comptroller's report confirms that the VSB has the resources to deliver a sound education program for their students but that poor board governance, lack of strategic planning, and missed opportunities for savings have contributed to the board's current financial situation," she said.

Board says report offers no help

VSB chair Patti Bacchus said the report is in error on a number of counts and does nothing to resolve the board's immediate financial problems.

"There's really nothing she's provided us that's going to help us," Bacchus said Friday after an initial review of B.C. Comptroller General Cheryl Wenezenki-Yolland's report.

"For the hundreds of thousands of dollars this reports has cost the taxpayers of British Columbia, the school district is not in a better position today to address the needs of our students than it was before the report came out."

Bacchus said it appears the board's 341 layoff notices will stand as part of an effort to address a multi-million-dollar deficit

Minister highlights concerns

The report was written by Wenezenki-Yolland and released on Friday by MacDiarmid, who highlighted the six specific findings in the report:

• "Despite management advice to support longer-term decision-making, some of the board's choices have created significant budget pressures of about $8 million this year."
• "Up to $11.8 million additional revenue and cost-savings opportunities have been identified, including more opportunities for shared services."
• "Excess space is not being maximized. VSB could achieve up to $5.7 million in annual savings by closing and consolidating schools."
• "The board focuses on advocacy at the expense of stewardship of the district. The board must focus on fulfilling responsibilities for education services and limit advocacy activities, noting the appropriateness of using district resources to fund advocacy work is highly questionable."
• "Trustees have not demonstrated that they have the management capacity to effectively govern the district. Consistent concerns about the ethical and organizational culture at the VSB were strongly evident, as was the perceived lack of trust between the board and district management."
• "The board's lack of a long-term vision and plan has led to short-term decisions rather than long-term planning of the district, finances and assets."

MacDiarmid said the report included specific recommendations that the board stop renting its facilities below market rates, and providing services not within its mandate.

It also found one trustee was in a conflict of interest, because she also served on the board of a daycare that leased space from the school board.

Special adviser appointed in April

The Minister appointed Wenezenki-Yolland in April to examine the board's financial performance after trustees said they might be unable to close an $18 million dollar budget gap without impacting students.

VSB chair Patti Bacchus has said the board will defer a final decision on budget cuts until June. (CBC)Bacchus blamed the provincial government for the budget shortfall, saying it is not increasing funding enough to keep up with rising costs faced by the school board.

MacDiarmid countered by accusing the VSB of "fear-mongering," and said the board is in the habit of predicting budget shortfalls and ending up with surpluses.

She then appointed the special adviser to help the board look for ways do things differently in order to deal with its budget, she said.