Group 4 Independent School Bonding Policy

Date came into force or revised

August 8, 2021

Status

Current (last updated March 3, 2022)

Policy statement

Group 4 independent school authorities (authorities) must maintain a bond, in accordance with the Independent School Act (PDF) and the Bonding Act. The purpose of the bond is to enable the repayment of fees when courses are not taken or completed due to the authority closing a school or the inspector suspending or canceling the certificate of authority. While the bond is intended to provide repayment in the event that an authority is unable to provide fee refunds after a school closure or suspension or cancelation of an authority’s certificate,  as schools function on a prepayment model, authorities are expected to conduct prudent financial management, in order to have sufficient funds on hand to fulfil their financial obligations, especially refunds of fees.

The Ministry of Education and Child Care’s (Ministry) administration of a Group 4 independent school bond for the purpose of providing prorated fee refunds will be completed as quickly as possible but can be a lengthy process as it is completed very carefully and within legislatively established timelines. Former students and their parents/guardians are advised that claims will not be assessed until the end of the limitation period (two to three years after the date of school closure) in order to provide equity of access to refunds from the bond to all potential claimants. The timeline for the Ministry’s claim review and refund administration process will depend on a variety of factors, including the number and complexity of the claims.  Refunds will not be available until a minimum of 2.5 years beyond the date of the school closure, but could take significantly longer than this. If total eligible claims exceed the amount of the bond, the calculation of refund amounts will be prorated, resulting in partial repayment to claimants. If the total amount of eligible claims does not exceed the amount of the bond, repayment of fees may be in full.  

Rationale or purpose of policy

This policy provides an overview of bonding requirements and procedures for Group 4 independent schools to ensure that fee-paying students at Group 4 schools are informed of Group 4 independent school bond obligations and have access to fee refunds in the event of a school closure.

Authority

Independent School Act (PDF) (Schedule)

Independent School Regulation (sections 8, 12-17)

Bonding Act

Bonding Regulations

The Ministry will hold redeemed bonds (funds) in trust for persons who establish rights of access to these funds.  The Ministry of Finance has designated an executive position within the Ministry of Education and Child Care, specifically the Executive Director with responsibility for Independent Schools, to act as custodian on the Minister’s behalf in relation to Independent School Act bonds. 

Definitions

Bond: "Bond" means security of any kind, including money, given to ensure performance of an obligation arising under an enactment, a license, a permit, a contract or another similar obligation, and includes the terms under which the security may be realized (section 1 of the Bonding Act). Irrevocable letters of credit and surety Bonds are the only acceptable types of security under section 17 of the Independent School Regulation.

Fees: As described in section 12 of the Independent School Regulation, “fees” means any money received by an authority from or on behalf of a student or a person applying to become a student other than money paid for post-secondary education.

Group 4 independent school: A classification of B.C. independent school where the majority of the students enrolled are not eligible for provincial funding as they are not B.C. residents (students from outside British Columbia, or international students). These schools must be bonded.

Prorated: In this policy, there are two types of prorated calculation:

1. Prorated calculation #1: eligible claim amount:

For the purpose of this policy, fees for services other than tuition will be prorated to determine the amount of the eligible claim (i.e. accommodation costs, extracurricular activity fees) on a monthly basis. 

Note: When calculating the eligible claim amount, tuition will not be prorated (i.e. courses paid for, for which a final grade was not obtained, may be eligible to claim a full refund). 

See Procedures, Section 3, B, II for the formulae that will be used to calculate the eligible claim.

2. Prorated calculation #2: refund amount:

For the purposes of this policy, “prorated” also refers to the formula used to calculate refund amounts when eligible claims against the bond are greater than the amount of the bond, resulting in partial repayment to all claimants.

Note: If the total amount of eligible claims does not exceed the amount of the bond, repayment amounts will not be prorated and may be in full (i.e. total amount of eligible claim).  See Procedures, Section 3, B, II for the formulae that will be used to calculate the refund amount.

Independent school authority (authority): As defined in the Independent School Act means:

1. a society within the meaning of the Societies Act,
2. a company within the meaning of the Business Corporation Act or a corporation incorporated under a private Act, or
3. a person designated, by regulation, as an Authority that operates or intends to operate an independent school.

Limitation period: In accordance with section 6 of the Bonding Act, a person may make a claim against a bond up to two years following the end of the period during which the bond was required to be maintained (i.e. two years following the last day --June 30-- of the school year in which the school closed). For example, if a school closed in February of 2020, the limitation period in which claims could be made against the school’s bond would end on June 30 of 2022.

Savings institution: A savings institution includes a bank or a credit union and is also referred to as a financial institution. 

Student: For the purposes of this policy, “student” means:

1. a person who commenced courses at a Group 4 independent school prior to the school’s closure, or
2. a person who was accepted into a Group 4 independent school, who paid fees, but did not commence courses at the school prior to the school’s closure.

Policy in full

1. Purpose of Group 4 Independent School Bonds

Under the Independent School Regulation, all Group 4 independent school authorities (authorities) must maintain valid bonds continuously while operating, in order to provide for the prorated repayment to students of all fees when courses are not taken or completed by students as a result of

(a) the authority closing the independent school, or

(b) the inspector suspending or cancelling the certificate of the authority.

The bonds are intended to provide repayment in the event that the authority has not provided fee refunds through other means, as expected (and as per the policy statement).  The bonds cannot provide refunds to students who paid fees but ultimately did not start the educational program due to causes unrelated to the school’s closure (e.g. study permit rejection).   

As per sections 6 and 7 of the Bonding Act, if a school should close, the authority is required to maintain valid bonding with the Ministry until the end of the limitation period or until the Ministry is satisfied that no valid claims against the bond exist. Bond reduction requests upon closure will be considered jointly by the Ministry of Education and Child Care and the Ministry of Finance. See Procedures, Section 2 for more information on bond reduction requests.

If an authority operates a Group 4 school in combination with a Group 1 or 2 school, the authority should include a statement in the enrolment agreement with the parents/guardians that confirms the enrolment status of the child (i.e. whether they are enrolled with a Group 1, 2 or 4 school) and a statement that clarifies that the bond’s protection is only afforded to students enrolled in the Group 4 school. 

2.  Fee Refund Policy Requirement

As per section 8 of the Independent School Regulation, an authority that holds a certificate of Group 4 classification for an independent school must provide to parents and students detailed information about the protection afforded by a bond acquired by the authority in accordance with sections 12 to 17 of the Independent School Regulation. To this end, Group 4 independent schools must have a Fee Refund Policy. This requirement is verified annually during the inspection process.

 

The Fee Refund Policy must include:

• Details about how the bond amount is calculated and its purpose;
• Details as to where students and families can find additional information about the bond, including a reference to this Ministry policy;
• The school’s refund procedures and practises and should address refund procedures in the event of a planned or unplanned school closure; and
• In alignment with the Fee and Refund Guidelines, the Inspector of Independent Schools expects Group 4 independent schools to include the following statement in their fee refund policy:

The Inspector of Independent Schools expects all Group 4 schools, including start-up schools with interim Group 4 certification to have access – without recourse to the Group 4 Independent School Bond – to enough cash-on-hand to provide fee refunds in full in the event that the school fails to open or re-open, fails to receive initial or ongoing certification after an inspection, or otherwise closes. Ministry of Education and Child Care’s administration of a Group 4 independent school bond for the purpose of providing partial refunds can be a lengthy process as it is completed very carefully and within legislatively established timelines. Former students and their parents/guardians are advised that claims will not be assessed until the end of the limitation period (two to three years after the date of school closure) in order to provide equity of access to refunds from the bond to all potential claimants. The timeline for the Ministry’s claim review and refund administration process will depend on a variety of factors, including the number and complexity of the claims. Refunds will not be available until a minimum of 2.5 years beyond the date of the school closure, but could take significantly longer. Parents should not rely on prorated refunds derived from this bond for any payment required before the payout of bond monies (e.g. parents should not rely on the partial refund coming from the bond to pay fees at another school). 

In addition:

• As per section 6(g) of the Schedule to the Independent School Act, the Group 4 independent school’s educational program, fees, accommodation and policy pertaining to the refund of school fees or other costs must be consistent with any promotional or other informational material published or supplied by the authority.
• The school’s Fee Refund Policy must be provided to families before any fees are paid and must be published online and otherwise made available upon request.
• Beginning in the 2021/22 school year, a copy of the Fee Refund Policy signed and dated by a parent of a student at a Group 4 school and by a school representative must be kept on record by the school.

3. Acceptable Bonding Instruments

As per section 17 of the Independent School Regulation, only the following instruments serve as acceptable security for a bond:

• Irrevocable letters of credit issued by a savings institution acceptable to the B.C. government, with a termination date beyond the required term of the security and containing a promise to pay the minister a specified sum on written demand; or
• Surety bonds issued by a person authorized by the Financial Institutions Act to carry on insurance business.

Additional requirements relating to bonding instruments:

• all bonding instruments must be in Canadian dollars;
• all bonding instruments must be obtained in the current name of the authority;
• in accordance with section 3(1) of the Bonding Act, all bonding instruments must be payable to the Minister of Finance; and
• beginning in the 2020/21 school year, the Ministry expects Group 4 schools to use B.C. Government-provided templates for irrevocable letters of credit and surety bonds for schools. Approval of alternate irrevocable letters of credit and surety bonds may be possible with the express authorization of the Ministry. Authorities should contact the Sector Performance Branch if the financial institution has concerns with the provided templates.

 

Authorities must contact the Sector Performance Branch prior to making any changes to their bond (e.g. amount, institution, template or other).

Procedures related to policy

1. Annual Requirements

   1. Amount of the Bond
      1. First Year of Operation 

In accordance with requirements and deadlines set out in the Establishing an Independent School policy, Group 4 independent school authorities (authorities) applying for Group 4 classification for the first time must post the minimum bond of $100,000 (CAD).

In accordance with section 12 of the Independent School Regulation, the amount of the bond will be adjusted if the student count is greater than 20 by the 30^th day of instruction. The updated bond amount will be calculated as follows: $5,000 per student. For example, if 30 students are enrolled by the 30^th day of instruction, the recalculated bond amount would be $150,000. The recalculated bond must be in place by the 45^th day of instruction. 

2.  Subsequent Years of Operation

Authorities of all Group 4 independent schools must provide bonding in accordance with the Independent School Regulation and the Bonding Act and the Bonding Regulations. Unless bonding reduction (hyperlink to section on Bonding Reduction) has been approved in writing by the Ministry, the bond amount will, in accordance with section 12 of the Independent School Regulation, be equal to 75% of all fees (as defined in this policy) collected from students for one of the periods of July through December, or January through June, whichever generated the most fees, of the previous school year. As per section 16 of the Independent School Regulation, the bond amount for an operating school may not be less than $100,000. See the Fees and Bonding Statement for further information.

3. Insufficient Bonding

Schools that do not having sufficient approved bonding in place may have their certification revoked.

2. Annual Bonding Submissions
   1. Fees and Bonding Statement

The authority forwards an audited Fees and Bonding Statement (FBS) to the Sector Performance Branch by July 31 annually, completed by an independent accountant and with the qualifications outlined on the FBS. This audited statement must indicate the total amount of all fees collected for the previous school year, separated into two 6-month periods (July 1 through December 31 and January 1 through June 30). New schools will complete the FBS after their first year of operation.

As part of the annual FBS, authorities are required to confirm that the authority is familiar with and has agreed to comply with this policy (i.e. the Group 4 Independent School Bonding Policy).

2. Adjustments to the Bond Amount (based on Annual FBS)

After its first year of operations, on the basis of the FBS, the authority must deposit, no later than September 1 of the current school year, a bond equal to 75 percent of the amount of fees collected in the six month period for which the most fees were generated). As per section 16 of the Independent School Regulation, the bond amount for an operating school may not be less than $100,000. See Section 1 D. of this Policy (Bond Replacement) for additional information. 

Submission instructions:

i) The authority determines which of the two types of approved bonding instrument it wishes to use and provides the bond to the Ministry (Sector Performance Branch) by August 15.

ii) The authority must ensure that the financial institution that issues the security (bond) sends any new or revised bonding documents to the Sector Performance Branch.

iii) All bond instruments must be submitted directly to the Sector Performance Branch by the financial institution for safekeeping.

iv) The Certificate of Group 4 Classification (interim or ongoing) will not be provided or renewed until bonding is in place.

3. Bond Reductions
   1. Bond Reduction Requests Based on Demonstrated Record of Performance (50%)

Under sections 13(3), 14 and 15 of the Independent School Regulation, an authority that holds a certificate of Group 4 classification for an independent school may in certain circumstances apply to the Ministry (Sector Performance Branch) for approval for a 50% reduction (as compared to the amount of the bond that would otherwise be required by section 12(2)(c) of the Regulation) in the amount of the bond that it must deliver for the following school year.

• In no case will the bond go below $100,000.
• This request must be made by the school authority in writing and received no later than May 1.

The Ministry will reply to reduction requests after May 1 each year. Applications after May 1 will not be accepted. Bonding reduction, if approved by the Ministry, will be in effect for one school year and will be included as part of the calculation of the Fees and Bonding Statement for the year in which it applies. A subsequent application would be required for any future reduction.

Eligibility for this reduction varies as noted below:

1. The minister may reduce the bond in accordance with section 13(3) of the Regulation for an authority with a Group 4 School in a facility not shared by another independent school if the following criteria are met:

1. The authority must have operated the independent school under a certificate of group 4 classification for at least 10 continuous years immediately prior to their application for a bond reduction.
2. A certificate of classification of the authority must not have been the subject of cancellation or suspension under the Independent School Act in the 5 years immediately prior to the application for a bond reduction.
3. The authority must be in good standing with the Registrar of Companies.
4. The authority submits a written request along with required documentation including:

•  a certificate of good standing issued by the Registrar of Companies not more than 30 days before the date on which the application is submitted.

2. On application by an authority that operates an independent school under a certificate of group 4 classification in the same facility as one or more independent schools operating under a group 1 or 2 classification, either by the authority or another authority, the minister may decrease the minimum amount of a bond if the following criteria are met (section 14 of the Regulation):
   1. The authority must have operated the Group 4 school and at least one of the Group 1 or 2 schools (if more than one) for at least 10 continuous years immediately prior to their application for a bond reduction.
   2. A certificate of classification of the authority (the Group 4 school and at least one of the Group 1 or 2 schools (if more than one)) must not have been the subject of cancellation or suspension under the Independent School Act in the 5 years immediately prior to the application for a bond reduction.
   3. The authorities must be in good standing with the Registrar of Companies.
   4. The authority that operates the Group 4 School submits a written request along with required documentation including:

• evidence that the schools operate in a shared facility; and
• certificate of good standing issued by the Registrar of Companies not more than 30 days before the date on which the application is submitted.

3. On application by an authority that operates an independent school under a certificate of group 4 classification and has entered into an agreement with an offshore school owner/operator, the minister may decrease the minimum amount of a bond if the following criteria are met (section 15(2) of the Regulation):
   1. The authority must have operated the independent school under a certificate of group 4 classification for at least 10 continuous years immediately prior to their application for a bond reduction.
   2. The offshore owner/operator must have operated at least one offshore school under an agreement with the Minister for 10 years continuously immediately prior to the application and must not have been placed on probationary status during that time.
   3. The authority must have a “student transition agreement” (as defined in the Regulation) with a B.C. public post-secondary institution.
   4. The authority that operates the Group 4 school submits a written request along with required documentation including:
      • evidence of an agreement with the offshore school owner; and
      • letter signed by both the authority and the B.C. post-secondary institution confirming that a “student transition agreement” is in place.

 

2. Bond Reduction Requests Based on Decrease in Fees (20% or more)

An authority that holds a certificate of Group 4 classification for an independent school may apply to have its bonding requirement reduced in accordance with section 13(1) and (2) of the Independent School Regulation if it can satisfy the Ministry that fees collected for the current school year will decrease by 20% or more compared to the previous school year based on enrolment on September 30 of the current school year.

The adjusted bond will be the amount of 75% of half of the sum of

1. the projected income for the current year, and
2. half of the difference between the projected income for the current year and the previous year’s income.

Example of bond reduction based on decrease in fees (20% or more):

If a school had collected $4,000,000 and fees in the previous school year and projected collecting $2,500,000 ($1.5 million reduction) in the current school year due to projected enrolment decline as of September 30, this would reflect a 37.5% reduction in fees. Under s.13(1) of the Regulation, this school would be eligible for this reduction.

where:

a= projected income for the current year: $2,500,000

b= half the difference between projected income and previous year’s income: $750,000 (half of 1,500,000)

[(a + b)/2]*75%

Based on the above calculation, as set out in s.13(2) of the Regulation, the adjusted bond would be $1,218,750, rounded up to the nearest one thousand dollars: $1,219,000.

Applications for this reduction will not be accepted prior to September 30 of the current school year.  The authority that operates the Group 4 school must submit:

1. sufficient information to justify an application for a reduction under section 13 (1) and (2); and
2.  a certificate of good standing issued by the Registrar of Companies issued not more than 30 days before the date on which the application is submitted.

D. Bond Replacement

When a bond has been replaced with the permission of the Ministry and is no longer required, and the Ministry is satisfied that the replacement bond is in a satisfactory form and is in the amount indicated by the Fees and Bonding Statement applicable for the school year, the Ministry will return the unrequired bond to the bond issuer (i.e. the financial institution). If an authority wishes to make any changes to a bond (e.g. the type of bond or the bond provider) it must inform the Ministry prior to making any changes.

2. Bond Reductions and Bond Returns or Cancellations

   1. Closed Schools

In cases where the bond has not been cashed in by the Province (See Section 3 of this policy for information on circumstances that warrant forfeiture of securities), the Ministry will consider requests from former authorities for a gradual reduction in the amount of bonding being held during the limitation period, if it can be demonstrated to the Ministry’s satisfaction that the reduced bond would adequately provide for any claims that could be made. Closed schools may request reductions in the amount of bonding held by the Province after eight and 16 months beyond the end of the school year in which a school has closed. The Ministry will consider evidence of an orderly school closure, including refunds being made directly to impacted families, and the absence of claim applications for refunds from former students.

Once the limitation period for bringing actions against the bond ends (24 months after the end of the school year in which the school closed) and the Ministry is satisfied that no valid claim against the bond exists, the Ministry would provide its consent to cancelation of the bond in accordance with the terms and conditions of the issuing financial institution.  Authorities contemplating the dissolution of their society prior to the end of the limitation period should consider the impact of this on their bond.

These bond reduction and return procedures also apply to schools that received interim certification, provided their bond to the Ministry, but failed to open as planned.    

The School Closure Policy provides additional information on the authority’s responsibilities upon school closure.

2. Schools that Change Group Classification (From Group 4 to Group 1, 2 or 3)

Group 4 schools that change to a different group classification (e.g. Group 1, 2 or 3) are also subject to the limitation period and may request gradual reductions in accordance with the considerations and timelines outlined in the section above (Closed Schools).  Once the limitation period has ended and the Ministry is satisfied that no valid claims exist, the Ministry would provide its consent to cancelation of the bond in accordance with the terms and conditions of the issuing financial institution.

In addition, the Ministry expects that the authority would inform parents that for future years, the school will be solely responsible for refunds (as there is no bonding requirement for Group 1, 2 or 3 independent schools).

3. Claims against the Bond

A. Forfeiture of security 

An irrevocable letter of credit posted by a closed Group 4 independent school may be drawn upon by the Province (or the Province may make a claim under a surety bond) in cases where the Ministry has reason to believe that claims may be made against the bond.

Monies drawn by the Ministry will be held in trust until the end of the limitation period, after which time claims will be assessed and prorated refunds distributed where appropriate to eligible claimants.  In order to provide equitable access to the bond and to ensure that prorated refunds are calculated equitably, the Ministry will not initiate the assessment of claims or provide refunds before the end of the legislatively established limitation period. 

Authorities contemplating the dissolution of their society/company after the bond has been cashed in should consider potential impacts on the return of any remaining funds once refunds have been administered. 

B. Refund Procedures

1. The Claim Application Process

Former students of Group 4 independent schools (or their parents/guardians) may submit a claim application for prorated fee refunds under the provisions of the Independent School Regulation and the Bonding Act in cases where a school closes or the Inspector of Independent Schools suspends or cancels the certificate of the authority (effectively a school closure). The bond is intended to provide prorated fee refunds where full fee refunds are not provided by the authority. See the definition of “fees” under Policy in Full for further information on what fees may be eligible for refund.

Prorated refunds will only be provided when courses are not taken or completed by students due to the closure of the school. A course is considered to be not taken or completed for the purposes of a refund if no final mark was issued for the course. For courses leading to a B.C. Certificate of Graduation, in order for a course to be considered complete, marks must have been submitted to the Ministry. For courses not leading to a B.C. certificate of graduation (e.g. courses that are specifically offered to English Language Learners to improve their language proficiency), in order for a course to be considered complete, final grades must have been provided to the student on a progress report. The Ministry will work with the closed school and/or claimant to obtain these records.

To be eligible for a prorated refund, the former student (or their parent/guardian if the former student is less than 19 years of age at the time of claim application) must submit a full and complete claim application to the Ministry, including evidence of fees paid to the school authority where courses were not taken, or not completed, as a result of the school’s closure, and evidence of any refunds provided by the authority.  All documents submitted must be in English. A notarized translation (the notary must be a practicing lawyer, or a member of The Society of Notaries Public of British Columbia) must be submitted along with the original in instances where documentation is in a language other than English. Claims may be made up to the end of the limitation period. Claims received after the end of the limitation period will not be considered.

The Ministry will open a claim application period (period in which potential claimants may access the Ministry online application form) before the end of the two-year limitation period.  The claim application period will be open for no fewer than six months. The Ministry will make efforts to communicate to former students through the Ministry’s Group 4 Independent School Bonding policy webpage and other communications tools where available (e.g. media and communication with agents or consulates) but does not accept responsibility if former students or their parents/guardians are unaware of the claim application process.

Claim applications will be reviewed and assessed at the end of the limitation period (link to definition in Policy in Full). Claims that do not follow the Ministry’s procedure, including the requirement to submit a complete claim application, may either be rejected, or the claimant will be asked for further information.  The Ministry may conduct the claims assessment internally or procure a third-party assessor to review and advise the Ministry on claim eligibility and prorated fee refund amounts. Eligible claimants will be provided with a refund, typically pro-rated, by the Ministry once applications have been reviewed and assessed.  The Ministry will endeavour to complete this process as quickly as possible. 

The Claim Application Process (Steps):

Step one:  The former student (or parent/guardian if the former student is less than 19 years of age at the time of application) emails the Independent Schools Office to access the online claim application, providing the name of the closed school attended and the claimant’s name.

Step two: The Ministry responds to the emailed request and provides a unique claim number and link to the online form (Note: Once the claim application period has opened).

Step three: The former student (or parent/guardian if the former student is less than 19 at time of application) completes and submits the Ministry’s online claim application, along with all relevant documentation. Notes:

1: notarized translations may be required.

2: It is the claim applicant’s responsibility to inform the Ministry of any changes to contact information after the submission of the claim application but prior to the payment of prorated fee refunds. If Ministry communications (requests for clarifications on claim application, payment instructions) are not acknowledged/responded to within 6 weeks of the date of the initial Ministry communication, then the claim will be treated as rejected and a refund will not be provided.

Step four: The Ministry reviews the claim applications at the end of the limitation period. This can be a lengthy process (Note: The Ministry may seek the assistance of a third party to provide advice on claim eligibility and prorated fee refund amounts). 

Step five: The Ministry contacts the applicants regarding claim application eligibility and prorated fee refund amount (if eligible). Ministry staff will make reasonable efforts to contact eligible claimants at their last known address and phone number, sending multiple emails and attempting to reach claimant by phone and/or regular mail, if emails are not responded to. 

Step six: The Ministry provides prorated fee refunds to the eligible applicant.  Payments will be made in Canadian currency by cheque or electronic transfer, preferably to a financial institution within Canada. In cases where the eligible applicant requests to be reimbursed through a financial institution outside of Canada, the Ministry will not be responsible for any banking fees or service charges, conversion rates and other amounts in connection with such payment. Where applicable, such charges will be deducted from the refund amount.  

Note: If an eligible claimant has not responded within three months of the final, written communication, funds will be transferred to the B.C. Unclaimed Property Society, which is the administrator appointed under the Unclaimed Property Act. Claimants may make a claim for that money with the B.C. Unclaimed Property Society. More information about the process is available on the Unclaimed Property Society’s website: www.unclaimedpropertybc.ca. 

2. Calculation of Eligible Claim

When calculating the eligible claim amount, eligible tuition fees will not be prorated.  All other fees will be prorated (e.g. accommodation fees, fees for extracurricular activities, fees for student medical insurance). Prorated eligible amounts will include the month in which the school closed. For example, if a school closes on March 17, the Ministry will prorate from the beginning of the month of March.

Eligible Claim = A + B + [C _* (x ÷ y)]

Where:

A= Total tuition fees for courses not started

B=Total tuition fees for courses started but not completed

C=All other fees (excluding tuition fees)

x=length of time remaining in program (in months) from the end of the month in which the school closed

y=duration of program (in months)

3. Calculation of Prorated Repayment (only when total claims exceed the amount of the bond)

The Ministry will prorate repayments among eligible applicants who have applied for refunds when the total amount of eligible claims against the bond is greater than the amount that is available under the bond. Proration using the formula below will result in partial repayment to claimants. Proration will be as follows:

Prorated repayment= (A x B) ÷ C

Where:

A = amount that is available under the bond

B = amount of an eligible claimant’s eligible claim

C = total eligible claims made against the bond.

Note: When the total amount of eligible claims does not exceed the total amount of the bond, repayment for eligible fees will not be prorated (as defined in this policy) and may be in full. 

 

C. Return of any Remaining Funds to the Former Authority (after claims have been processed)

Any monies remaining after all refund claims have been processed will be returned to the independent school authority. In the event that the former school authority has declared bankruptcy or no longer exists, remaining monies will be disbursed in accordance with applicable legislation.

In the event that the Ministry is unable to provide a refund to an eligible claimant, the unclaimed funds will be transferred to the B.C. Unclaimed Property Society, which is the administrator appointed under the Unclaimed Property Act, (and not to the independent school authority). More information about the process is available on the Unclaimed Property Society’s website: www.unclaimedpropertybc.ca. 

In the event that the former school authority has declared bankruptcy or no longer exists, remaining monies will be disbursed in accordance with applicable legislation.