TREASURER’s REPORT by Henk Jan Jonge Poerink
The school’s financial situation continues to strengthen as a result of encouraging new enrollment numbers, effective budget and procurement processes and a strong focus on risk assessment and mitigation. The financial future of the school is secure as we contemplate its move to a new long term location. Enrollment After a slow start, enrollment applications improved throughout the year such that the year’s budget for tuition fees was achieved. In addition, there was a higher than budgeted turnover of existing students resulting in significantly higher one-time fees for registration and land and buildings. Tuition peaked at 1,653 students, the highest recorded figure since 1997. Total revenue exceeded budget by RM 4.6 million. Budget and procurement The budget is established almost one year in advance and approved by the Board in November prior to the new school year. This process requires discipline and foresight. It also demands flexibility as circumstances change. A process of monthly revised forecasts provides regular oversight of revenue and expenditure trends. ISKL has a history of strong controls over expenditure such that new programs for which less expensive solutions can be found often result in budget savings. This year was no exception as actual expenditure was maintained below budget by RM 3.8 million, producing an overall cash surplus of RM 18.7 million, RM 8.4 million over budget. The surplus on an accrual basis of accounting was RM 18.3 million (2009/2010 RM 13.2 million). Risk and audit During the year the school undertook a thorough risk management review in addition to strengthening its internal audit protocols. Further risk assessment and mitigation efforts are planned in the coming years covering all areas which pose significant financial or reputational risks to the school. The future The disappointment in not being able to complete the purchase of land which appeared to meet many of our established criteria has been replaced by an enthusiasm to find a site even more suitable for ISKL’s future needs. We believe that the lessons learned during the lengthy and exacting process of land identification, purchase negotiation and financial, architectural and construction planning will serve us well as we re-embark on this process. We do so in the knowledge that ISKL has built a sound financial base and with the confidence that we will continue to increase the reserve funds necessary to achieve the long term goals of the school whilst maintaining our focus on providing an exceptional education for each of our current students. We also want to express our greatest gratitude to Nigel Cumberland, who has been Treasurer for the past four years. Under his financial leadership and guidance, the school has developed a very solid and healthy financial base. Thank you Nigel and we wish you a lot of success in Dubai.