Treasurer’s Report AGM 2016 · Treasurer’s Report AGM 2016 . Content •Lycée Condorcet Registrations •Snapshot •Revenue •Grants ... AEFE Grants 22,222 207,407 518,153

Treasurer’s Report

AGM 2016

Content

• Lycée Condorcet Registrations

• Snapshot

• Revenue

• Grants

• Expenses

• Cash and Cash Equivalents

• Working Capital Ratio

• Financial Year 2017 Perspective

• Communication

• Financial Statements

• Directors’ Declaration

Lycée Condorcet Registrations

• Australian Securities and Investment Commission (ASIC) registered company - Lycée Condorcet The International French School of Sydney Ltd

• Australian Business Number (ABN): 68 003 977 160 • Australian Charites and Not-for-Profit Commission (ACNC) registered • Board of Studies Teaching & Educational Standards NSW (BOSTES)

registration granted under the Part 7 of the Education Act, 1990 • School is Licensed as a French School Abroad and has an agreement with

AEFE (Agence Enseignement Francais a l’etranger) Note: not signed since 31 July 2002

• Memberships and Associations e.g. Australian Independent Schools (AIS) Q. What does that mean from a financial perspective???

What that means in funding?

• We are entitled to both Commonwealth and State grants • We are entitled to grants from the AEFE • We are entitled to apply for grants from AIS • Currently the contribution from AEFE is a non cash injection:

• 17 Staff (ISVL) - 49% of Salaries covered by AEFE • 17 ISVL (Indemnité Spécifique de Vie Locale) staff (16 teachers, 1 admin)

• ISVL - Local Life ‘allowance’, added to the index-based cost of residents -it intends to compensate the difference in the cost of living with France (takes into account inflation, exchange rates etc).

• ISVL and allowance is 100% funded by the school. • 5 personnel - 100% of Salaries covered by AEFE

• 2 Principals • 1 Financial Controller (DAF) • 2 Expatriate Teachers

Snapshot

• Revenue • An overall increase in revenue of $1,417,607 (11.2%) coming from; • School Fees $10,792625 (Note 2). Increase of $1,148,529 • Grants of $3,066,489 (Note 5). Increase of $333,443

• Expenses • Employee Benefit Expense increased by $485,011 (6.8%) • Repairs, Maintenance and Cleaning increased by $103,889 (25.2%) • Other Expenses increased by $238,727 (15.9%)

• Cash and Cash Equivalents stands at $6,006,470 which represents an increase of $1,585,029 (35.8% YoY) (Note 6)

• Operating Surplus stands at $1,584,158 which is an increase of $570,551 (56.3% YoY) and it is mainly due to; • Increase in students numbers

• Increase in School Fees • Increase in Grants

Revenue Revenue of $14,098,003

School Fees, 10,792,625 , 77%

Commonwealth & State Government Grants, 3,066,489 ,

22%

Interest Received, 157,605 , 1%

Canteen Trading Surplus, 33,857 , 0%

Donations Received, 2,100 , 0% Sundry Income,

45,327 , 0%

Operating Revenue FY16

Revenue FY15 – FY16

School feesCommonwealth andState Government

GrantsInterest received

Canteen TradingSurplus

Donations received Sundry Income

2016 10,792,625 3,066,489 157,605 33,857 2,100 45,327

2015 9,644,096 2,733,046 162,657 63,010 50,317 27,270

YoY 11.9% 12.2% -3.1% -46.3% -95.8% 66.2%

11.9% 12.2%

-3.1%

-46.3%

-95.8%

66.2%

-120%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Revenue FY14-FY16

School fees

Commonwealthand State

GovernmentGrants

Interest receivedCanteen Trading

SurplusDonationsreceived

Sundry Income TOTAL INCOME

2016 10,792,625 3,066,489 157,605 33,857 2,100 45,327 14,098,003

2015 9,644,096 2,733,046 162,657 63,010 50,317 27,270 12,680,396

2014 8,878,838 2,417,068 142,645 57,508 19,954 9,956 11,525,969

FY16-15 11.9% 12.2% -3.1% -46.3% -95.8% 66.2% 11.2%

FY15-14 8.6% 13.1% 14.0% 9.6% 152.2% 173.9% 10.0%

11.9%

12.2%

-3.1% -46.3%

-95.8%

66.2%

11.2%

8.6%

13.1% 14.0% 9.6%

152.2% 173.9%

10.0%

-150%

-100%

-50%

0%

50%

100%

150%

200%

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

Grants FY 15 & FY 16

Commonwealth -Recurrent Grant

State - RecurrentGrant

State - InterestSubsidy

Other Grants AIS Block Grant AEFE Grants

2016 2,382,660 637,416 46,413 - -

2015 1,678,206 530,022 45,370 7,226 450,000 22,222

YoY 42.0% 20.3% 2.3% -100.0% -100.0% -100.0%

1,678,206

530,022

45,370 7,226 450,000

22,222

42.0%

20.3%

2.3%

-100.0% -100.0% -100.0%

-120%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Grants FY13 to FY16

2016 2015 2014 2013

AEFE Grants 22,222 207,407 518,153

AIS Block Grant - 450,000 -

DER Grant - Fully Expended 20,332 63,450

Other Grants - 7,226 3,503 1,539

State - Interest Subsidy 46,413 45,370 62,731 70,496

State - Recurrent Grant 637,416 530,022 479,888 494,182

Commonwealth - Recurrent Grant 2,382,660 1,678,206 1,643,207 1,715,262

Total Grants Expended 3,066,489 2,733,046 2,417,068 2,863,082

3,066,489

2,733,046 2,417,068

2,863,082

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

Lycée (Yr 11 & 12) Grants FY16

• Calendar year 2015, Yr 11-12 students (1ere et terminale) finally became eligible for Australian Gov’t grants! (~$4,000)

• The Board passed on 50% of this grant to students in Yr 11-12 in the form of a school fee reduction.

$ 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017

PS/MS 6,500 6,730 7,134 7,490 8,690 9,038 11,500 12,190 12,800 13,248 13,480 13,817

GS 6,500 6,730 7,134 7,490 8,490 8,830 9,448 10,015 10,516 10,884 11,074 11,351

Elementaire 4,100 4,245 4,500 4,725 5,725 5,954 7,145 7,502 7,727 8,152 8,295 8,502

College 6,400 6,625 7,022 7,375 8,375 8,710 10,017 10,318 10,576 10,946 11,138 11,416

Lycée 10,100 10,455 11,082 11,636 12,650 13,156 13,682 14,092 14,444 14,950 12,836 13,157

IB 12,636 13,650 14,196 14,764 15,207 15,587 16,133 14,831 15,202

Note: this is the legacy of Mr Patrice Ribault’s Chairmanship

Expenses

Personnel expenses & salaries, 7,011,260 , 56%

Contribution to AEFE, 1,506,483 , 12%

Depreciation, 881,184 , 7%

Superannuation, 624,572 , 5%

Administration & other overheads, 529,702 , 4%

Repairs, maintenance & cleaning, 516,057 , 4%

Purchase of materials, 414,896 , 4%

School excursions & camps, 397,448 , 3%

Interest paid on borrowings, 238,625 , 2%

Other Expenses, 393,618 , 3%

Expenses of $12,513,845

Expenses FY16 vs. FY15

Personnelexpenses and

salaries

Contribution toAEFE

Depreciation SuperannuationAdministration

and otheroverheads

Repairs,maintenance and

cleaning

Purchase ofmaterials

School excursionsand camps

Interest paid onborrowings

Other Expenses

2016 7,011,260 1,506,483 881,184 624,572 529,702 516,057 414,896 397,448 238,625 393,618

2015 6,529,480 1,493,818 853,994 570,313 504,964 412,168 347,638 394,113 259,051 301,250

YoY 7.4% 0.8% 3.2% 9.5% 4.9% 25.2% 19.3% 0.8% -7.9% 30.7%

7.4%

0.8%

3.2%

9.5%

4.9%

25.2%

19.3%

0.8%

-7.9%

30.7%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Cash and Cash Equivalents (Note 6)

$1.58M

Working Capital Ratio

Working Capital Ratio describes the capacity to pay current debts (Current Assets/Current Liabilities) The minimum recommended ratio stands at 1.0 The schools Working Capital Ratio has increased (strengthened) over the last 6 years

Financial Year 2017 Perspective

• Building D – point work (re-mortering b/w bricks) - $500,000

• Phase One of Masterplan - $2,000,000 + variations (15%) ~ $2,300,000

• Currently – no grants from AIS, AEFE or Aus. gov’t to subsidise these works

• Phase Two Master Plan (the Canteen) is not eligible for AIS grants or Aust. gov’t subsidies

• Cost of these works will be from LCS cash reserves

• There is no debt finance on the current works

• Cash and Cash Equivalents stands at $6,006,470 (Note 6) this will ~ half in FY2017 to ~ $3,000,000

Communication

This presentation will be made publically available on the web site.

Financial Statements

Financial Statements will be published to allow questions by the members. Financial Statements will be tabled and voted at the next Board meeting.

Directors’ Declaration

“In the Directors’ opinion there are reasonable grounds to believe that the company is able to pay all of its debts, as and when they become

due and payable.”