IMPACT: Annual Report IMPACT: Annual Report 2015-16 | Page 10

A LETTER FROM THE BUSINESS MANAGER Bathsheba Fernander This letter, in conjunction with the adjacent graphs and table, gives a summary of the school’s financial structure and a brief overview of this past year’s operating finances. The school has two main revenue streams: tuition dollars for operational expenses and donations which are for projects that are above and beyond what tuition can sustain. Tuition revenue is specifically used to cover operating costs such as insurance, utilities, accreditation and membership fees, instructional materials, exam fees, maintenance for buildings and grounds and staff costs. Staff expenses represent about three-quarters of the expenditures, which is on-par with international schools worldwide. 8 The school’s operating budget governs the allocation of tuition dollars in the above areas. Each fall, the budget for the following school year is prepared by the school’s management team. It is then reviewed by the Board’s Finance Committee to ensure that there is no waste or inefficiencies and that tuition increases are kept to a minimum. Finally, the budget is approved by the full Board in January. The Finance Committee is also responsible for monitoring the implementation of the budget throughout the year. The Board receives financial reports of the school’s operations at each meeting. Annually, the school’s financial status is validated by an external auditing firm, currently Deloitte, and this is done in accordance with Generally Accepted Accounting Principles (GAAP). The report is always available in the Business Office for those interested in viewing. At the end of the last fiscal year, our tuition revenue exceeded budget by 2% thanks to our robust enrolment. The additional revenue enabled us to exceed our planned budget in the areas of operations & maintenance. As you know, our current campus is an aging one, and each year we are required to make more and more repairs to ensure that our students have a safe and conducive environment in which to learn. The Finance Committee is committed to ensuring that LCIS continues to be a financially stable institution.