Finance Section 300 - Morrison Academy 馬禮遜美國學校 - Missionary School, MK School, International Christian School, International American School

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Finance Section 300

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Finance Section 300

Revenue and Expenditure Contracts
School Fees
Fund Accounting System
Risk Management
Budget Process
Financial Reports

REVENUE AND EXPENDITURE CONTRACTS

300 Petty Cash

Petty Cash funds are to be maintained on an "imprest" basis for the payment of minor expenses or services rendered. It is to be held as an account receivable in the Current Fund.

Petty Cash fund balance and disbursements limits are determined by the Schedule of Cash Limits (appendix). An authorized Payment Request form or exchange receipt documents each withdrawal from Petty Cash. When the cash balance falls below the minimum fund balance, a check is issued so that the fund can be brought up to the maximum balance. Receipts, Payment Request's, and cash on hand in the fund should always equal the maximum fund balance. No purchases may be split into smaller purchases for the purpose of by-passing monetary limits.

Occasionally, it may be necessary to obtain an advance from the Petty Cash Fund for the purpose of making a purchase or paying for a service. All cash advances must be signed by an administrator and cleared within one month. Cash advances greater than NT$10,000 or exceeding one month must be charged to the loan account (IPS) using a Payment Request Form. The Petty Cash Fund and advances are for school business or related benefits (i.e. medical) only.

GBM 3/01
Reference - Policy 4410 Accounting Standards

302 Accounting Standards

Accounting procedures must be used that are consistent with the standards set forth by the National Association of Independent Schools in their manual, Business Management for Independent Schools, and that are in accordance with applicable U.S. and R.O.C. regulations.

SAC 93
Reference - Policy 4410 Accounting Standards

304 Exchange Rate

The school shall maintain its books in New Taiwan Dollars. Transactions in U.S. Dollars shall be translated into NT$ at a fixed exchange rate. The buy and sell rate should not vary more than NT$1, and should encompass the Bank of Taiwan buy and sell rate. Any income collected in U.S. Dollars shall be converted into N.T. Dollars at the fixed rate of exchange.

SAC 93
Reference - Policy 4410 Accounting Standards

306 Cash Management

All school revenue will be received by the school cashier and credited to Morrison Academy General Ledger. Receipts above petty cash limits will be deposited in a Morrison Academy bank account or postal account. All collections will be completely supported by official receipts.

Revenue from school authorized fund raising and resale accounts may be pooled for up to 30 days or accumulate up to NT$10,000 before being receipted by the school cashier. Student organizations will either deposit funds in a school account or maintain a Taiwan postal account administered by the sponsor.

Donation for Capital Campaign, Annual Fund and other fund raising for Morrison Academy (Policy 4253) should be receipted within 3 business days. The donors name and/or non-parent donors contact information, amount donated and purpose of the gift should be listed on the receipt and forwarded to the Director of Development within 3 business day, or immediately if the gift is more than NT100,000.

All expenditures are done in cash, wire transfer, or bank draft. An adequate amount of cash will be maintained to satisfy operations of the school in accordance with the Schedule of Cash Limits (appendix).

For approved overseas on line orders or orders requiring advance payment only, the trackers or other authorized personnel could pay with a school credit card issued under their names. The card holder should be the only one to use the card. The card may not be used for personal business. The invoice and payment record should be forwarded to the System Accountant before the 28^th of each month.

Adequate funds for current operating expenditures will be maintained in both United States and New Taiwan dollars. Funds in excess of current operating needs will be invested according to Board policy in low risk instruments.

SAC 5/06
Reference - Policy 4240 Cash Management
Policy 5253 Fund Raising for Morrison Academy

308 Expenditure Authorization

The Director of Finance will designate which administrator will be authorized for each budget line item.

All expenditures must be authorized by the appropriate administrator according to the Expenditure Authorization Schedule (see Appendix). It will be the responsibility of the administrator to insure that purchases are aligned with the intent of the account, that adequate documentation is maintained, and that purchases fall within the approved budget. An administrator may delegate authorization for expenditures of less than NT$20,000. Expenditures exceeding NT$20,000 must have written or electronic authorization by the appropriate administrator before the order is communicated to the vendor. Expenditure exceeding NT2,000,000 must have written/electronic authorization by the administrator and Director of Finance before the order is communicated to the vendor.

SAC 3/06
Reference - Policy Authorization of Expenses

310 Line-item Fidelity

Expenses must be in alignment with the basic purpose of the line-item. Revenue may not be placed in expense line items (artificially reducing expenses), nor may expenses be made from revenue line items artificially reducing them.

SAC 93
Reference -- Policy 4410 Accounting Standards

312 Accounts Payable

Requests for payment must be made on a Payment Request form or via the MCA Check/Payment Request computer application. Appropriate supporting documentation (Procedure 316) must be presented to the cashier before payment is disbursed.

Requests for payment are to be submitted by Wednesday of each week to the appropriate authorizer. Such approved requests are to be paid on the Friday of the same week. Authorized invoices are to be paid on the Friday of the week that it is due, as indicated on the invoice. In the absence of due date, the payment period will be the normal industry payment cycle.

The cashier will be responsible for the distribution of checks to vendors. All vendors who pick up their checks from the cashier must sign or chop the voucher. No distribution of funds shall be made without verification that the order received reconciles to the invoice. Bills are to be paid no later than thirty days after a shipment is received. When requesting payment to individuals who are not Morrison employees, the payee's ARC (Alien Registration Card) or ROC number is required before the payment is made.

SAC 4/04
Reference - Policy 4410 Accounting Standards

314 Authorization of Contingency Funds

In the event of an unexpected need where no budgeted funds are available, the administrator may request that contingency funds be used. Requests for such funds must be made to the Superintendent or the Director of Finance.

The Superintendent, in consultation with the Director of Finance, may authorize contingency funds up to NT$100,000. Requests for funds in excess of NT$100,000 must have the approval of the System Administrative Council. If the contingency funds of the budget are depleted and additional contingency funds are needed, a revised budget must be approved by the Board of Trustees.

GBM 6/02
Reference - None

316 Documentation of Expenditures

The following documentation is required for all expenditures.

Account number
Payment instructions (payee's name & choice of check, cash, postal account, or internal transfer)
Appropriate authorize's signature or email authorization. For orders exceeding NT$20,000, the appropriate administrator's signature is required dated prior to the order date.)
Supporting document (receipt, invoice, or other detailed description)

Local Expenditures

Expenditures for goods and services from within Taiwan are recorded on a Payment Request form or the MCA Check/Payment Request computer application. Attach the original copy of official government receipts, if possible. For expenditures less than NT$500 or where official government receipts cannot be obtained, a hand written receipt which includes the date, item, amount, and an administrator's initials may be used. Contractors, who cannot provide official government receipts and whose work exceeds $10,000 per month, are subject to 6% Taiwan Income Tax withholding.

Overseas Expenditure

There are three alternatives for documenting expenditures for goods or services from outside of Taiwan.

Payment Request - Request payment or reimbursement for approved overseas expenditures which require little tracking, i.e. memberships, subscriptions, orders hand-carried to Taiwan, etc.
Consolidated Purchase Order - Most bulk orders to be shipped from vendors in North America are channeled through a consolidator. To ensure timely and economical delivery, purchase orders for the following school year should be submitted before February 1st.
Urgent Purchase Order- Small or urgently needed overseas orders may be delivered directly to Taiwan via mail or express service. Additional delivery and duty charges will be born by the department making the order.

Each overseas purchase order requires the administrator's signature. The order is assigned to the "tracker". Only secretaries and librarians may serve as trackers. The tracker sends the order to the vendor, facilitates order revisions, arranges payment, and files all documentation.

The person initiating the order is only responsible for completing the order form and checking to see if the delivery matches the invoice. Incomplete or unsatisfactory deliveries must be processed through the tracker within 10 working days after delivery.

SAC 10/05
Reference - Procedure 308 Expenditure Authorization

318 Bids

Bids should be sought from responsible bidders who are capable of offering a fair price commensurate with the desired quality, delivery, and service. Misrepresentation on the part of a vendor shall be just cause for disqualification on future bids.

Written quotes from at least two responsible bidders are required for all irregular local purchases over NT$50,000. It is the responsibility of the employee placing the order to present clear and complete specifications so that the written bids may be an accurate tool for selecting a vendor. The General Manager may assist you in securing the needed bids.

Just cause must be shown if a decision is made not to contract with the lowest bidder.

GBM 5/99
Reference - None

320 Conflict of Interest

No school employee will accept gifts from any person, group, or entity, doing or designed to do business with the school. Business-related gratuities are specifically prohibited except items of nominal value that are widely distributed for the purpose of advertising or promotion.

All employees shall avoid possible conflicts of interest with vendors. Conflicts of interest include, but are not limited to a material financial interest in a vendor, borrowing or lending to a vendor, revealing confidential information to a vendor, and accepting employment with a vendor.

Teachers may not receive any form of compensation for tutoring their own students.

No employee, while fulfilling the terms of their contract, will engage in non-Morrison activities to the extent that such involvement precludes completion of the responsibilities of their Morrison Academy contract.

SAC 1/08
Reference - Policy 3529, 3523

322 Resale Inventory Controls

An inventory of supplies for resale to students or staff may be maintained. Resale inventory shall be limited to instructional supplies, school souvenirs, and convenience foods. Resale inventories include, but are not limited to, music, PE, teachers' lounge snacks, and student store. Resale inventories are the property of Morrison Academy.

Requests for new resale accounts shall be submitted by the administrator to the Director of Finance who will, in turn, assign an account number and authorize a beginning balance transfer. Budget funds shall not be used as seed money for resale accounts.

All resale accounts shall be held as an account receivable in the Current Fund. Sales will be posted as credits and purchases as a debit. Resale account balances shall be listed on the administrators monthly financial statement. A printout of resale account activity may be requested from the System Accountant.

Each department, which has a resale account, shall conduct an annual inventory. No transactions shall be made between the time that the inventory has begun and the time that auditors check the inventory in June. A complete inventory list shall be submitted to the System Accountant no later than one week after the day of school.

The annual inventory should reconcile or be roughly equivalent to the account balance. Surpluses may be transferred to other accounts by the building administrator. If inventory levels are less than the account balance, the administrator shall develop a plan to recoup the loss within 12 months. In such cases, a mid-year audit shall be required.

Resale prices shall be set sufficiently above cost to cover losses due to obsolescence, damage, theft, and any other operating expense (i.e. student labor for student store, etc.). Resale accounts will not be charged for utilities, space rent, or office services.

GBM 5/99
Reference -Policy 4335 Subsidies

324 Student Activity Account

Student activity accounts may be maintained for school-sponsored student organizations or fund raising projects. Student activity accounts include, but are not limited to, high school basketball travel, class fund raising, and Student Council.

A request to open an activity account shall be made by the administrator to the Director of Finance who will, in turn, assign an account number. An interest free loan for new accounts may be approved by any administrator.

Student activity accounts shall be held as an account payable in the Current Fund. The school shall not charge any service charges or pay interest on student activity accounts.

All ninth grade student accounts are required to carry over half of their funds at the end of the school year to the following school year's Taichung Campus tenth grade student account.

Normally, student activity funds are self-supporting. Transfers of school funds to a student activity fund are limited to:

The budgeted annual subsidies of high school organizations from Account #6940.
Chaperone travel and housing, in accordance with Policy #5640.

Account balances are listed on the administrators monthly financial statement. The System Accountant prints monthly detailed account printouts which are distributed by the appropriate school office. Class advisers assist student treasurers in maintaining a separate accounting of all transactions that can be reconciled with the monthly printout.

GBM 6/02
Reference - Policy 4252 Student Fund Raising

326 Purchases from Next Year's Budget

After the next school year's budget has been approved by the Board of Trustees, an administrator may proceed with the purchase of some or all of the next year's facility renovations projects and of the next year's overseas operations expenditures. Special care should be taken to indicate on the payment request form or purchase order that the order should be debited against next year's school budget.

SAC 5/97
Reference - None

328 Reimbursement For School Travel

Morrison Academy employees, Board members, or others representing the school on official business, shall be reimbursed for administrator approved travel expenses within the following limits.

The reasonable cost of meals and housing accommodations. Meals not to exceed (Breakfast - NT$200, Lunch - NT$300; Dinner - NT$500).
The cost of public transportation of economy rates including bus, taxi, air, high speed rail (HSR), and train. HSR travel to or from Taichung may only be used by parties of one or two. Travel between Taipei and Kaohsiung may use either use air or HSR.
The personal vehicle reimbursement rate is listed in the User Fees Schedule. If a mission vehicle is borrowed for school use, Morrison will reimburse the mission according to the mission's regular rate.

SAC 4/07
Reference - Policy 2160 Board Remuneration and Reimbursement

SCHOOL FEES

330 Payment of School Fees

An annual school registration fee must accompany each school registration form. The registration fee is normally due by the first Friday in April and will not be refunded. If the Principal feels that circumstances warrant a refund, he/she may recommend to the Director of Finance that a refund be given. The Director of Finance will have the authority to authorize a refund.

Fees are quoted in and payable in N.T. Dollars.

If it is necessary to pay fees in U.S. Dollars, the rate of exchange used will be subject to any change in the official exchange rate.

Tuition, building and boarding fees are payable in advance for each semester. Mission organizations which have mission payroll receivable greater than the tuition, building, and boarding fees due may wait until mid-semester to pay.

As a service, statements will be mailed to the address stipulated by parents upon their request and as agreed to by the Director of Finance. Accounts are due and payable whether a "statement" has been received or not.

SAC 8/07
Reference - Policy 4315 Fees

332 Fees and Charges

A fee is charged for music lessons and classes that are not a part of the regularly scheduled music classes, that occur during the school day, e.g. private and small group instrument/voice lessons during the day or after school, small group music lessons after school, etc.

A user fee is charged to students who use school instruments or facilities for practice.

A transportation fee is charged to those students who take advantage of school provided transportation services.

A milk fee or hot lunch fee is charged to students who sign-up for these optional programs.

A Special Needs Instruction fee is payable for those students who are taking this study. Special needs instruction is not covered by regular tuition. Students admitted who do not meet normal Special Needs admittance criteria will be required to bear the full financial costs of any additional instructional program required to meet their educational plan.

The parent will be responsible for reimbursement of costs of materials used for projects in industrial arts, home economics, art, photography, etc., as well as the cost of costumes and uniforms which become the property of the student.

Lock and breakage deposits may be required. Information concerning these will be provided by the department or class requiring them.

Dormitory fees are divided into three categories: program, kitchen service, and food, for billing purposes.

An annual telephone deposit may be required for dormitory students who have a telephone in their room. The unused balance of the deposit will be refunded with the Fall semester tuition statement or by check to non-returning students.

Other fees may be levied for additional voluntary services offered on a given campus.

SAC 9/05
Reference - Policy 4315-4319

333 Testing Fee

An Application Testing Fee is payable for each student prior to testing for admission into a Morrison school. Normally, the Application Testing Fee is non-refundable; however, if the student passes the test and is not enrolled because no space is available, the Principal may authorize a refund of the Application Testing Fee. The Application Testing Fee is a fee charged for each testing session.

SAC 1/00
Reference - Policy 4320 Tuition and Fees

334 Boarding Deposit

At the time of acceptance into the dormitory, non-missionaries will be required to pay the second semester dorm residence fee as a non-refundable deposit. This deposit will be forfeited in the event that the child does not complete the academic year for which application has been made.

GBM 6/97
Reference - None

336 Penalties for Delinquent Payments

School bills not paid by the due date on the statements are subject to a late fee of NT$1000.

Tuition and fees not paid within 30 days of the first day of the semester normally will result in the removal of the student from the school unless a Deferred Payment Plan has been agreed upon. Transcripts will be held on any student who has an outstanding balance.

SAC 5/06
Reference - Policy 4314 Delinquent Bills

337 Deferred Payment Plans

A Deferred Payment Plan may be arranged with the Cashier and approved by the Principal. A fee of NT$1000, along with the Deferred Payment Plan entitles a family to pay without interest as follows:

Fall Semester:
     50% of the school bill by the due date on the statement (July 1)
     25% by August 1
     25% by September 1

Spring Semester:
     50% of the school bill by the due date on the statement (December 1)
     25% by January 1
     25% by February 1

Exceptions to this payment plan will be charged the late fee and interest of 1% per month on the balance due, and shall be calculated from the due date to the payment date.

SAC 5/06

338 Part-time Students

Normally, only children of missionaries will be allowed to enroll as part-time students. The Principal after consultation with the Superintendent, may allow students to be enrolled as part-time students. When students are enrolled as part-time students, the following formulas will be used to calculate tuition and fees.

percent of school day in attendance x 1.5 x tuition & fees

GBM 9/00
References - Policy 4320 Tuition and Fees

340 Missionary Discount and Fee Reductions

For those students whose parents are classified as missionary or Christian worker, the missionary or Christian worker discount will be applied to tuition, building fee, dormitory room, kitchen service, and special needs instruction. The registration fee will also be reduced to NT$11,000 and may be further reduced to NT$6,000 if paid during the early registration period.

SAC 11/06
References - Policy 4281, 1613

342 Tuition and Fee Schedule

All tuition, building, and boarding fees will be determined by the Board of Trustees as part of the annual budget. Building fee is part of the tuition fee which is designated by the Board of Trustees for building and facility replacement; therefore it is not tax deductible. The Board of Trustees may adjust tuition, building, and boarding fees for any given semester if the need arises. The Director of Finance will publish an annual tuition, building, and boarding fee schedule. (See Appendix)

SAC 11/06
Reference - Policy 4316 Tuition and Fees

344 Partial Semester Attendance - Billing

For students withdrawing from the school refunds on tuition and building fees will be calculated according to the following chart.

Prior to the end of the fifth week before the semester	90%
Prior to the end of the first week of the semester	75%
Prior to the end of the second week of the semester	50%
Prior to the end of the third week of the semester	25%
Prior to the end of the fourth week of the semester	10%
After the fourth week of the semester	no refund

The Director of Finance may grant a partial or prorated refund for all tuition, building and boarding fees when extenuating circumstances exist. This is done by the appropriate administrator submitting a written request stating the circumstances.

Tuition, building and Boarding Fees for students enrolling after the fourth week of the semester will be prorated. Students enrolling the fourth week of the semester or prior to that time will pay full tuition, building, and other fees.

SAC 5/06
Reference - Policy 4315 Fees
Reference - Procedure 330 Payment of School Fees

FUND ACCOUNTING SYSTEM

346 Current Fund

Unrestricted Current Fund

The unrestricted portion of the Current Fund includes any economic resource earned in a fiscal year for the purpose of carrying out the objectives of the school. Expenditures from this fund shall be determined by the budget. After the annual audit is completed, any net income or loss will be transferred to the Plant and Development Fund. The annual allocation of the reserve expense will be transferred to the Pant and Development Fund at year end.

Restricted Current Fund

Chinese Employee Retirement and Severance Fund

All qualified employees will be fully vested. At the end of each fiscal year a transfer will be made from the budget to cover any shortfall in this fund. All expenditures from this fund will be in accordance with Procedure 656 - Retirement and Procedure 654 - Severance Pay.

Emergency Reserve

Contingency funds to be used in the event of a long-term school closure in accordance with Policy 3527 - School Closure and Procedure 455 - School Closure.

GBM 3/01

Reference - Policy 4401 Authorized Funds

348 Plant and Development Fund

The Plant and Development Fund is a restricted fund of all fixed assets. Fixed assets include all equipment, buildings and land valued at over NT$60,000.

This fund is restricted as follows:

Expenditures for land and new buildings require Board approval.
Expenditures for improvements to existing buildings greater than NT$100,000 require System Planning Committee approval.
Expenditure for equipment gains will be approved through the budget process.

Liquid resources are held as reserves for future investment according to the designation of the account.

The building fee is to be deposited into the Plant and Development Fund.

SAC 11/06
Reference - Policy 4401 Authorized Funds

350 Endowment Fund

The The principal of this fund in its entirety may not be used.

Endowment investment revenue must be used annually in accordance with donors' designations.

Alex Herring Instructional Grant

Alex Herring served on the Morrison Board of Trustees from 1958 to 1961. Two of his children graduated from Morrison: Gordon (1961) and Nan (1965). This endowment was initiated in 2004.

Donations to this fund will be invested in conservative mutual funds. The amount of this annual grant will be based on the annual investment revenue. Any Morrison Academy employees may apply for this instruction grant. Grants will be awarded to programs that demonstrate innovative instructional techniques and impact a large number of students. The Director of Finance, in consultation with the Director of Curriculum and Professional Development, will determine the amount and recipient(s) of the award. In the event Morrison ever ceases to exist as a school, the account balance will be transferred to Furman University in Greenville, SC to be managed in a similar fashion for the same purpose.

Kenneth G. Klefsaas Memorial Award

Kenneth G. Klefsaas served as high school principal of Morrison Academy from 1986 to 1988 and as superintendent from 1988 until his death in February of 1989. This endowed graduation award was established in his honor at that time.

This award will be presented annually to the senior boy and senior girl who have most consistently demonstrated: a commitment to Christ in daily life, involvement in campus organizations and completing tasks, encouragement to fellow students to strive to reach their potential, and integrity and good character in their individual daily lives.

John Schmitt Vandenberg Memorial Award

John Schmitt Vandenberg graduated from Morrison Academy in 1984. John was passionate about the poor and oppressed in developing world and served with Mennonite World Relief. John was tragically killed in a cycling accident on Sep 5, 1998.

This endowed graduation award was established in his honor by his close friends from the Morrison class of 1984. This award will be presented annually to a senior who submits a series of essays that best characterize the verse that John epitomized (Micah 6:8) and how they will live that verse out in their life.

SAC 5/09
Reference - Policy 4140 Authorized Funds

352 Accounting of Fixed Asset

Equipment and building improvement projects valued at over NT$60,000 will be budgeted in the capital budget section of the Unrestricted Current Fund. At the end of the fiscal year actual expenditures from the capital budget are capitalized to the appropriate account in the Fixed Asset section of the Plant and Development Fund.

The list of Fixed Assets will be updated at the end of each fiscal year.

ROC regulations governing not-for-profit organizations do not require depreciation of buildings and equipment. Depreciation expense will not be reported in the Current Fund.

The Principal and/or the Director of Finance may dispose of equipment which are considered no longer usable because of obsolescence or damage.

Assets donated to the school shall be recorded at a fair market price as of the date of the gift.

Investment securities shall be recorded at cost when they are acquired. If fixed rate securities are acquired at a discount or premium, that discount or premium shall not be amortized as income until it matures.

SAC 9/04
Reference - Policy 4140 Authorized Funds

RISK MANAGEMENT

354 Cost Analysis

The Director of Finance shall manage the use of insurance as a method of controlling risk. Cost analysis shall be done to determine the level at which internal reserves can be used to supplement the annual purchased insurance.

GBM 5/99
Reference - Policy 4270 Risk Management

356 Liability

Morrison shall carry liability insurance for the school, the Board of Trustees, and the employees; thus protecting them from any damage or injury which is caused by negligence on the part of the school or any employee of the school while acting in an official capacity.

SAC 93
Reference - Policy 4270 Risk Management

358 Fidelity Bonding

A fidelity bond shall be maintained, which will insure against loss through misappropriation of funds or assets for all those employees who have access to or handle currency or checks.

SAC 93
Reference - Policy 4270 Risk Management

360 Money Insurance

Morrison shall insure against the loss of money at any time up to a sufficient amount to cover periods of time when fees are being collected.

SAC 93
Reference - Policy 4270 Risk Management

361 Vehicle Insurance

Drivers must have a Taiwan validated driver’s license. Violation of capacity limits or driving without a valid Taiwan validated drivers license nullifies all vehicle insurance coverage.

School Vehicle

All school-owned vehicles to be used on public roads are to be covered by at least the following levels of insurance.

	CARS & VANS	MOTOR CYCLE
Liability (government required)	$1,500,000	$1,500,000
Third-party liability	$4,000,000 Injury / person $8,000,000 Injury / accident $800,000 Property	$900,000 Injury / person $1,800,000 Injury / accident $200,000 Property
Passenger	$200,000 Injury / person $2,000,000 Death / person $16,000,000 Total / accident
Theft (vehicle & parts)	10% Deductible First year only
Comprehensive	$9,000 Deductible First year only

Personal Vehicles

Morrison employees who own personal vehicles are required to carry at least the following levels of insurance coverage. Expatriate staff may request assistance from the General Manager to acquire vehicle insurance.

	CARS & VANS	MOTOR CYCLE
Liability (government required)	$1,500,000	$1,500,000
Third-party liability	$$4,000,000 Injury / person $8,000,000 Injury / accident $500,000 Property	$900,000 Injury / person $1,800,000 Injury / accident $200,000 Property

SAC 4/09
Reference - Policy 4270 Risk Management

362 Student Accident Insurance

The school may purchase accident insurance for each student. Normally the school will use the same insurance company as Taiwanese public schools.

Coverage includes reimbursement for accident related medical expenses, as well as compensation for accidental death and dismemberment benefits. All claims must be submitted within 30 days of the accident. Documentation for claims should include the claim form (available in the school office), doctors certificate, and original itemized receipts. Claims shall be submitted to the broker.

Information regarding student accident insurance will be provided in the student/parent handbooks.

GBM 3/01

BUDGET PROCESS

364 Budget Calendar

The following consensus building process shall be observed when planning the budget:

The Board Finance Committee sets budget goals (by October)
Project enrollment, program changes, consider any salary and benefit changes (October)
Complete a partial budget which includes tuition, registration, dormitory, and special needs fees. The partial budget should be approximately 80% of the budget's capital and instructional line items directly related to overseas purchases. (December)
Director of Finance, in consultation with the Superintendent, submits a balanced budget proposal and budget worksheets to the System Administrative Council. (February)
Administrators return budget worksheets with justification for proposed changes. (March)
System Administrative Council approval of Budget (April)
Budget presented to the Finance Committee and Board of Trustees (May)

GBM 6/02

Reference - None

366 Re-Assessment of Services

The administration will reassess services and service levels at least every two years. Careful cost analysis of the total real expense shall be compared to the needs the service provides. Assessment of services will also ensure alignment with applicable policies of the Board of Trustees.

GBM 3/01
Reference - None

368 Budget Preparation

In the budgeting process, revenue amounts will be estimated conservatively. Enrollment should be estimated using the average of the last four year's September enrollment, but factors that may influence enrollment to depart from this average should also be considered. Recommendations for tuition, fees, waivers, and discounts will also be determined.

A goal of 6:1 pupil-FTE ratio will be maintained in contracting personnel. Salaries and benefits will be reviewed annually.

Budget requests will be prepared by each administrator. It is the responsibility of the administrators and supervisors in various departments to involve staff in the formulation of the budget and to advise them of what is finally approved.

A capital expense is defined as any piece of equipment, facility, or furnishing with a value of more than NT$60,000. Maintenance projects, such as painting and masonry replacement, are not capitalized. Likewise, window and floor coverings are considered operating supplies rather than fixed assets. Capital expense requests should be aligned with the long-term plans of the school. Capital expense requests should be prioritized in order to determine where cuts may be made. Capital expense requests should include projected needs for at least two years in advance.

An operating contingency account will be budgeted to provide for unforeseen emergencies, hardships, etc. Operating contingency will not exceed 2% of the operating budget.

SAC 9/04
Reference - Procedure 230-4401, Policy 4350 Personnel-Enrollment Authorization

370 Mandatory Budget Revision

If actual enrollment falls below 2% of the budgeted enrollment, a revised budget will be called for by the Director of Finance. The System Administrative Council will recommend necessary adjustments in order to balance the budget to the Board Finance Committee for approval by the Board.

GBM 3/01
Reference - Policy 4345 Decreased Enrollment

372 Budget Transfers

The Director of Finance, upon request by the administrator, may transfer budget within the context of a department, fiscal year, and budget division (personnel, administration, instructional, operation). Budget transfers shall be documented and filed by the System Accountant.

When a campus' actual enrollment on September 15th, exceeds or falls short of the budgeted enrollment by five or more students, then enrollment sensitive budget line-items for that site will be increased or decreased proportionately using the contingency funds, according to system-wide per student averages for those line-items. These line items are limited to capital, equipment, photocopy, instructional supplies, library, athletics, music, science, computer, operating supplies, and maintenance line items. This transfer will be approved in accordance with procedure 314 Authorization of Contingency Funds.

SAC 10/01
Reference - Policy 4340 Authorization of Expenses

374 New Revenue

To deal with increasing costs, the acquisition of new revenues will be emphasized and net reductions in subsidized areas will be reviewed for reduction or elimination.

Morrison Academy will seek to pursue new revenue sources for all services and programs. Existing fees will be reviewed to determine levels of subsidy to fee programs inclusive of hidden and fixed costs. New areas of subsidy must have the approval of the Board of Trustees.

SAC 5/94
Reference- Policy 4310 Alternative Revenue Sources, Policy 4335 Subsidies

FINANCIAL REPORTS

376 Line Item Reports

Monthly line item reports will be made available to authorizers for their respective accounts. This will assist the authorizer in being able to accurately track his/her outstanding balance in any given account. A more detailed report of monthly actuals may be requested from the System Services Accountant, if needed.

SAC 3/95
Reference - None

378 Annual Financial Reports

In addition to the certified report produced through the annual audit, the Director of Finance shall present an annual report for the Superintendent of Schools and the Board of Trustees. The report shall include a statement of revenues, expenditures and changes in fund balances, a summary of investments and reserves, as well as any other documentation, to realistically portray the current financial position.

SAC 93
Reference - Policy 4410 Accounting Standards, 4430 Annual Report

380 Monthly Financial Reports

Financial reports shall be prepared by the Director of Finance and distributed to the Board of Trustees preferably in advance of Board meetings. This should include a statement of revenue and expense by department, a historical comparison of actual to budgeted activity, as well as a summary of current financial position. The Director of Finance shall function to assure that all expenditures are in keeping with Board policy and within the approved budget. Gross irregularities and all budgetary overruns will be reported at this time. All overruns will accumulate until transfers can be made or the Finance Committee recommends a budget revision.

GBM 3/01
Reference - Policy 4320 Expense Policies

382 Bi-annual Report

A bi-annual report of Plant and Development, Endowment, and Development Fund balances and activity shall be made to the Board of Trustees.

SAC 93
Reference - Policy 4231 General Principles

390 Annual Fund

The goal of the Annual Fund is to cultivate a broad-based donor culture within the schools primary constituencies. In the spring the principal, in consultation with the Development Office, campus staff, and parents, chooses the project for the next year, in accordance with the purpose defined in policy 4253. The project list requires Board Finance Committee approval. The promotional phase for parents of current students and current staff is normally conducted towards the beginning of the academic year.

Annual Fund donations are used for projects on the campus designated by the donor. Donor recognition and appreciation is normally conducted towards the end of the year or in the Annual Report publication. Normally, projects are implemented and completed within the same academic year as the donation was received. The Principal is responsible for authorizing the expenditure of Annual Fund donations, with the exception of financial aid. Finance Committee authorizes the financial aid portion in accordance with policy 4285. Annual Funds donations designated for financial aid that remain unused at the close of the fiscal year are transferred to the Associate Scholarship Fund.

SAC 8/05
Reference - Policy 4253 Fund Raising for Morrison Academy

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