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.
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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.