Treasurer’s Report AGM 2016
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.”