Finance Committee Report

Mr Andrew Macintosh Chair of Finance Committee

Finance Committee Members: Mr Andrew Macintosh Mr Tom Corkhill Dr Dan Hooley Professor Richard Petty

The purpose of the Finance Committee is to oversee financial planning and management for the School. In offering advice to the School Foundation Board on financial matters, the Committee makes recommendations including tuition fees, debentures and capital levy rates, staff salary levels, capital expenditure, operating expenditure (including professional development) and other sources of funding.

The Committee liaises with external auditors to ensure that the School complies with Hong Kong reporting requirements and oversees the development and management of operating budgets.

Working with stakeholders to ensure sufficient investment is made to create a dynamic teaching and learning environment, the Committee is dedicated to attracting, retaining and rewarding the best talent from Australia and around the globe. The Committee continues to facilitate the growth and development of the School, while recognising financial constraints and a challenging financial environment.

The Committee benchmarks AISHK against other international schools in Hong Kong, in terms of a range of financial indicators. Working with the School Executive, the Board and other stakeholders continue to identify ways in which the School might operate more effectively and efficiently.

In the absence of any external or government financial support, there is an ever-present need for the Committee to balance considerations of affordability with the cost of providing a highquality education.

The Board continued to closely monitor the Covid-19 situation in 2021 and the related impacts on AISHK families. Mindful of the current landscape and the uncertainty which remains, the Board acknowledged that the challenges presented by the pandemic are ongoing.

In line with this consideration, the Board communicated to AISHK parents in March to announce a 7.5% percent reduction on tuition fees charged in Term 1 of 2021. This reduction was reflected as a credit in the Term 2 parent fee account statement issued in April 2021.

A subsequent communication to parents in November announced that the Board unanimously resolved to freeze tuition fees in 2022. Therefore, there was no increase in school fees for the 2022 school year.

These actions were taken in aim to maintain the financial health of the school, whilst also observing a commitment supporting the community during a challenging period. As Chair of the Finance Committee and on behalf of the Board, I trust that this balance has served us well and will continue to do so as we embark on the new school year in 2022.

As the Foundation’s finances remain in a strong position, the School is financially equipped to ensure the resources for delivering a quality Australian and international education in Hong Kong

Thank you to staff, stakeholders and community members whose collective dedication and efforts, even in the face of adversity, ensure a resilient, vibrant school community.

Australian International School Foundation Limited Financial Summary

Preliminary Summary of Income and Expenditure Year Ended 31 December 2021

Figures in $000’s 2021

Turnover 186,793

Other Income 5,744

192,537

Staff Costs 138,162

Educational Services 5,518

Administration Expenses 8,957

Facilities Management 13,397

Other Expenses 16,675

182,709

Surplus and Total Comprehensive Income for the Year 9,828