Policy: 4.000

Section: SECTION 4: FINANCIAL MANAGEMENT

Budgetary and Financial Management Objectives

BUDGETARY AND FINANCIAL MANAGEMENT OBJECTIVES

The Board recognizes that the quantity and quality of learning programs are directly dependent on the funding provided and the effective, efficient management of those funds. It follows that achievement of the School’s mission, core values and strategic objectives can best be achieved through prudent financial management. Further the Board recognizes the trust it has been given with the responsibility of managing these funds and will be vigilant in fulfilling its responsibility to see that the funds are used wisely for achievement of the purposes to which they are allocated. The Board will be responsible for ensuring that all aspects of School finance are managed in compliance with A). School’s doctrines, B) Business practices C) Financial integrity, and D) prudent management of reserves as follows:

A. School doctrines: The School’s finances will be managed in compliance with the Charter and By-Laws of ASB Education Trust and Board policies contained in this section.

B. Business practices: Whereas the Board recognizes that the School’s reason for existence is to provide high quality teaching and learning, it further recognizes the need to implement sound business practices in all aspects of the School’s operations and financial management. Within the framework of Board policy and implementing regulations, it is expected that the Board will:

1. Engage in thorough advance planning in order to develop budgets and to guide expenditures so as to achieve the greatest educational returns and the greatest contributions to the educational program;

2. Establish levels of funding which will provide high quality education for the students of the School;

3. Use the best available techniques and processes for budget development and management.

4. Conduct all financial and business decisions in accordance with the checks and balances that are conventions in proper accounting operations and financial accounting in compliance with applicable Accounting Standards and Generally Accepted Accounting Practices in India. (GAAP)

5. Ensure the provision of timely and appropriate financial reporting;

6. Ensure the implementation of efficient procedures for accounting, reporting, investing, purchasing and delivery, payroll, payments and all other areas of financial management;

7. Commission an internal/external annual audit of the School’s accounts by a reputable auditing firm;

8. Ensure no conflict or appearance of conflict of interest in the management of the School’s financial assets and business dealings with vendors;

9. Ensure compliance with the laws and regulations of the Government of India.

C. Financial integrity: The Board is responsible for the adoption of policies to provide for the financial health of the School, and prudence in their financial management of the School. Prudent financial management requires the Board to consider the following:

1. Maintain an adequate of operational fund assets over operational fund liabilities sufficient to meet all obligations when they become due;

2. Adopt an annual operations budget, which, except for unusual circumstances, can reasonably be expected to maintain an adequate reserve to meet potential emergencies;

3. Annually provide in its operations budget for all expenses and liabilities, so that the amounts recorded in the statement of net assets are sufficient to extinguish such liabilities in the event that all such obligations become payable at one time;

4. Follow an accrual-based method of accounting. Accruals will be made as soon as liabilities are known to the Administration;

5. Adopt, when necessary, multi-year budgets for the acquisition, replacement, or major maintenance of the School’s physical plant and equipment;

6. Ensure the School maintains adequate reserve balances. The amount of these reserves ensured or insured should be at least equal to the cost of emergency closure of the School. The Finance Committee may recommend additional reserves as necessary.

7. The Board will ensure the availability of sufficient funds to operate the current school program before committing to any new construction project or program.

The Board may make exceptions under special circumstances that they feel are valid and report explicitly in the minutes of the meeting where the resolution is passed.

D. Investment of reserves: The Board will ensure school financial reserves are placed in safe, secure, and liquid investments, as reviewed and approved by the Finance Committee and as applicable to a Trust for educational purposes and on a not-for profit basis

Notional Budget Calendar

SeptemberCommitteeFinance Committee approves budget calendar. Finance Committee re-evaluates the current year budget for any change in enrollment/unforeseen expenses.BoardBoard approves any Finance Committee Recommendations. OctoberCommitteeFinance Committee considers priorities for the following School Year’s budget for consideration by the Board. BoardBoard establishes priorities for the following Fiscal Year’s budget.Admin.Business Manager provides principals and program managers with budget calendar and instructions for developing operational budget (supply/services/equipment). . Head of School and Director of Operations and Finance in conjunction with the Board Treasurer develop staffing and compensation proposals with Employee groups. NovemberCommittee Finance Committee reviews employee compensation + tuition and enrollment fees proposals and approves recommendation for budget development purposes. NovemberAdminHead of School collects Employee intention surveys. Staffing needs are submitted to the Head of School by the principals and other administrators for the following Fiscal Year. Business Manager determines costs for any capital projects. Board approves staffing and compensation proposal, Contract letter to all teaching staff is issued in December by Head of School. DecemberCommitteeFinance Committee reviews capital project requests and prioritizes.Board Board approves Finance Committee’s recommendation of tuition and enrolment fees for next school year. Admin.Principals and program managers submit the supply, services and equipment requests for the following Fiscal Year. FebruaryAdmin.Enrollment survey is conducted – Admission Officer AprilAdminBusiness Office prepares tentative budget based on requests submitted by Principals and program managers. Head of School reviews and revises proposed budget. Finance Committee reviews proposed budget assumptions Finance committee reviews and approves the exchange rate for the following school year MayBoard meetingFinance Committee recommends the approval of budget to Board. The Board approves the next school year’s budget. AdminMay 1 - Invoice/Contracts are sent to parents. AugBoard meeting%the Annual Financial Report is submitted

Cross References:2.010 - Powers and Duties of the Board of Trustees 4.010 - Conflict of Interest 4.110 - Budget Administration 4.200 - Financial Accountability 4.210 - System of Accounts 4.250 - Financial Audit 4.300 - School Income 4.400 - Depository of Funds 4.500 - Purchasing Authority and Guidelines 4.600 - Disbursement of Funds 5.150 - Emergency School Closings

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.100

Section: SECTION 4: FINANCIAL MANAGEMENT

Annual Operating Budget

ANNUAL OPERATING BUDGET

The annual operating budget is the financial plan for the operation of the School. It provides the framework for both expenditures and revenues for the year and translates into financial terms the School’s educational programs and priorities. The Head of School is responsible for preparing the School’s annual operating budget after studying the needs of the School. He/she will submit the proposed budget to the Finance Committee in accordance with Board policy and procedures for review and approval. The final budget will then be submitted for Board approval. The annual operating budget, as approved by the Board, will serve as the controlled spending plan for the ensuing school year. It should be adequate to cover annual operating costs and to allow for additions and changes as dictated by the projected needs of the School. This policy covers the budget calendar, budget development, budget approval, and ongoing budget reviews.

1. Budget Calendar In September of each year, the Head of School, assisted by the Business Manager and in consultation with the Finance Committee, will prepare a budget calendar which outlines the process and schedule for the development and approval of the following school Year’s operating budget. The format of the budget calendar is provided in the regulations associated with this policy. The Head of School will also develop procedures to ensure that necessary school inputs to the process are prepared and submitted in accordance with the budget calendar.

2. Budget Development The Head of School, assisted by the Director of Operations and Finance, will prepare and present a preliminary operating budget proposal for the following year, to the Finance Committee for review. The proposed operating budget will be prepared in U.S. dollars and include estimates of enrollment, staffing levels, and program expenditures, as well as recommendations for funding these expenditures. The Finance Committee will ensure that the proposed operating budget is consistent with the School’s budgetary and financial management objectives and meets the operational requirements of the School for the upcoming year. In reviewing the operating budget, the Finance Committee will hold one or more budget review meetings and study the school program in its relation to present and future needs. As necessary, the Finance committee will also work with the Head of School to establish alternative funding levels for Board consideration. When required, the Head of School will also develop a capital budget to support the construction or major renovation of school facilities or major equipment purchases. When the School proposes to fund projects over more than one fiscal year, budget

estimates for the subsequent years’ budget requirements, including recommendations for fund management and allocations, source of funds, annual cash-flow projections and cash reserves, must be submitted concurrently. Approval of a multi-year project commits the Board to include the funds necessary for the completion of the project in capital budgets in subsequent years.

1. Budget Approval After review and approval of the proposed budget(s) by the Finance Committee, the Head of School will present the proposed budget(s) to the Board for final consideration and approval. The budget review and Board approval process will be completed in accordance with the approved budget calendar, but no later than the regular May Board meeting. The budget(s) for the coming year will be presented to the Trust at the Annual Trust meeting. Upon Board’s approval, the budget(s) will become the official spending plan for the upcoming school year. Within the approved budget(s), the Head of School is authorized to make expenditures and commitments in accordance with Board policies and regulations.

2. Ongoing Budget Reviews The Board recognizes that a critical component to the School’s annual operating budget is the anticipated or actual student enrollment. To that end, the Finance Committee will conduct four formal reviews of the operating budget each year, one at the start of the school year (no later than the September Finance Committee meeting) and a second mid-year (no later than the December Finance Committee meeting). Following each review, any proposed changes to the operating budget will be presented to the Board for approval. These ongoing reviews allow the Board to make adjustments to the operational spending plan based on actual student enrollment or any other major changes in the School’s profile.

Cross References:1.250 - Collection of School Fees 2.010 - Powers and Duties of the Board of Trustees 4.000 - Budgetary and Financial Management Objectives 4.110 - Budget Administration 4.120 - Financial Years

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.110

Section: SECTION 4: FINANCIAL MANAGEMENT

Budget Administration

BUDGET ADMINISTRATION

The School’s budget, once approved by the Board, is considered a statement, in financial terms, of the operational plans for the School. Therefore, a system of fiscal control must be established to govern the administration of the budget and the receipt and expenditure of funds. The following provisions will govern implementation and control.

1. The Head of School will have the authority to authorize expenditure of funds within the limit of an adopted budget, in conformity with Board policy and procedure and legal requirements.

2. The Head of School will establish procedures that clearly delegate authority to expend funds within each budget program, establish accountability for those expenditures and outline methods of control.

3. Expenditures from any Program will be for the purposes indicated in the budget, unless variation is authorized as provided in this policy. No individual or group delegated authority and accountability for a program or portion thereof will expend funds beyond the budget for that account without the written authorization of the Head of School as permitted in Board policy.

4. Any budget revisions, budget overrides and transfers of funds including the use of additional revenue generated by increased enrollment must be approved by the Board, recorded in the official Board minutes and where appropriate, reported in the quarterly Board financial statements.

5. When circumstances justify the need to meet unforeseen or unplanned School requirements, the Head of School may incur obligations not exceeding 10% of non-personnel funds within each line account, while not exceeding the total budget authorized without prior approval of the Board. The Head of School will report such adjustments and obligations as they occur in the quarterly Board financial reports.

6. The Head of School will have quarterly financial reports prepared by the Business Manager for the Board which provide information on the budget and expenditures to date for each budget line item and projections for the balance of the Budget Year.

7. Any proposed modifications to the School’s budget will be prepared by the Head of School and submitted to the Board as budget revisions for approval throughout the School year.

The Board holds the Head of School responsible for administering the annual operating budget once approved, including establishing and overseeing a system of fiscal control to administer the budget and the expenditure of school funds in accordance with Board policy.

Cross References:4.100 - Annual Operating Budget 4.200 - Financial Accountability 4.210 - System of Accounts 4.220 - Financial Reporting 4.650 - Emergency Expenditures

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.120

Section: SECTION 4: FINANCIAL MANAGEMENT

Financial Years

FINANCIAL YEARS

The Head of School will maintain two calendars for the reporting of the School’s finances:

1. Budget Year. For budgeting purposes and financial reporting within the School, the Budget Year follows the School calendar and is from August 1 to July 31 of the year following.

2. Fiscal Year: For regulatory and auditing purposes, the Fiscal Year is from April 1 to March 31 of the following year.

The School’s financial accounting and reporting system must allow for the reporting of the School’s accounts by either calendar. In general, the Board will monitor the School’s financial position using reports run against the Budget Year. The School’s external auditors, however, will review the books and conduct the audit based on the School’s Fiscal Year.

Cross References:4.100 - Annual Operating Budget 4.210 - System of Accounts 4.220 - Financial Reporting 4.250 - Financial Audit

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.200

Section: SECTION 4: FINANCIAL MANAGEMENT

Financial Accountability

FINANCIAL ACCOUNTABILITY

The Head of School will be responsible for ensuring that all funds of the School are controlled and accounted for in accordance with the School’s financial management objectives in compliance with applicable Accounting Standards and Generally Accepted Accounting Practices in India. The Head of School will also ensure that details of the processes and procedures for ensuring the accountability of the School finances, is maintained and reviewed each year.

The Board authorizes the establishment of checking accounts, interest-bearing accounts, and petty cash funds, to be managed to the School's best advantage by the Head of School or their designee.

The Head of School will also be responsible for having the Director of Operations and Finance prepare a quarterly financial reporting package for the Board that clearly shows the current financial status of the School and enables the Board to discharge its responsibility for the sound financial management of School resources.

The Head of School and Business Office staff will periodically confer with appropriate financial specialists, such as the School’s independent auditors or the Board Treasurer to ensure that accounting procedures conform to sound business practices.

The Head of School and Business Office staff, in coordination with the Board Treasurer and/or Finance Committee will also submit a written summary financial report to the BoT highlighting key financial narratives, decisions and situations before the school year end. This may be standalone Annual Report of the Finance Committee/Treasurer

Cross References:4.000 - Budgetary and Financial Management Objectives 4.100 - Annual Operating Budget 4.210 - System of Accounts 4.220 - Financial Reporting 4.400 - Depository of Funds

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.210

Section: SECTION 4: FINANCIAL MANAGEMENT

System of Accounts

SYSTEM OF ACCOUNTS

The primary purpose of the School’s financial accounting and reporting structure is to comply with applicable legal provisions and to determine fairly and with full disclosure the financial position and results of the financial operations of the School. To that end, the accounting, financial reporting and management control systems of the School will:

• be designated and maintained to ensure accurate, reliable and relevant data and ease of audit,

• conform to the high standards of care and discipline required and in compliance with applicable Accounting Standards and Generally Accepted Accounting Practices in India. (GAAP)

• follow an accrual-based method of accounting, and

• produce a comprehensive set of financial reports on the financial affairs of the School, including quarterly financial statements and an annual written summary report to the board as per policy 4.200

The Head of School will be responsible for implementing a financial accounting and quarterly reporting system and establishing a system of accounts that will enable him/her to manage the financial assets of the School. The system of accounts will be approved by the Board and maintained by the Business Manager.

The Head of School, working with the Director of Operations and Finance, will be responsible for the maintenance of all financial records of the School in a form that will readily permit the preparation of the financial statements required for the proper monitoring of the School’s financial affairs and ease of auditing.

Cross References:4.100 - Annual Operating Budget 4.110 - Budget Administration 4.120 - Financial Years 4.200 - Financial Accountability 4.220 - Financial Reporting 4.250 - Financial Audit

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.220

Section: SECTION 4: FINANCIAL MANAGEMENT

Financial Reporting

FINANCIAL REPORTING

The Head of School will be responsible for reporting on the financial condition of the School to the Board on a quarterly basis n The reporting will be done in accordance with Indian Accounting Standards as determined by a certified accounting firm. The Treasurer will report on the School’s financial position to the Trust at its Annual General Meeting (AGM).

The School’s financial reporting system must produce reports that enable the Board to discharge its responsibility for the School’s financial management including a summary annual report with written narratives of key financial and regulatory decisions and updates

The Board will approve the format of the quarterly financial statements and reports. At a minimum, the report will include Summary of Revenue & Expenditure for all Funds combined, Operating Fund Quarterly Financial Statement, and Cash Flow statement for the year to date, reported in US Dollars or Rupees. Upon completion of the annual external audit, the Treasurer will share the audited Balance Sheet with the Board.

The Head of School will also provide any other financial reports or supporting schedules as may be requested by the Board, the Board Treasurer, the Finance Committee or the School’s auditors.

Cross References:2.310 - General Meetings of ASB Education Trust 4.100 - Annual Operating Budget 4.110 - Budget Administration 4.200 - Financial Accountability 4.210 - System of Accounts 4.250 - Financial Audit

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.230

Section: SECTION 4: FINANCIAL MANAGEMENT

Management of School Trust Funds

MANAGEMENT OF SCHOOL TRUST FUNDS

The Board encourages the safeguarding and proper management of all School funds including those raised by other related School organizations such as the Parent Community Association (PCA) and student groups (e.g., student government, clubs, teams, etc.).

Funds raised by these other School organizations will be handled independently of funds regularly raised by the School. The latter are budgeted and under the exclusive control of the Board. The former are deemed to belong to the organizations which sponsor the fundraising. However, this fact does not imply any lessening of accounting controls or procedures that should be in place.

To that end, and for purposes of uniformity and regularity, the PCA and all authorized student accounts will be maintained by the School Business Office which will follow all appropriate and relevant accounting procedures. The Board will be the ultimate guardian and will receive an annual report on the status of such funds. In addition, each student account will have an assigned adult advisor (usually faculty) who along with the Head of School or their designee will approve withdrawals and purchases. The same will apply to the PCA and other Community and Social Responsibility (CSR) accounts.

It is recognized that from time to time student clubs cease to operate and activities change, leaving unspent balances in dormant accounts. It is the Head of School’s responsibility, with input from the Principals, to consolidate obsolete student funds and to reallocate them to other student-use areas after consulting with the student government and faculty advisors. On an annual basis, appropriate reports of such decisions will be conveyed to the Board and to the student government.

The School’s external auditors will audit these accounts along with the School accounts annually.

Cross References:4.200 - Financial Accountability 4.250 - Financial Audit 8.500 - Student Organizations, Clubs and Government 8.510 - Student Activity Funds and Fund Raising 9.110 - Parent Teacher Association

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.240

Section: SECTION 4: FINANCIAL MANAGEMENT

Asset Inventories and Depreciation

ASSET INVENTORIES AND DEPRECIATION

The Head of School will be responsible for implementing and maintaining a system and associated procedures to track all assets of the School and appropriately account for them through approved methods of depreciation.

A. Physical Inventories

The School’s assets will be accounted for and tracked. All School furniture and equipment whose cost exceeds Rs. 5000 and whose utility extends beyond one year will be considered accountable property and a physical inventory maintained in a Fixed Asset Register (FAR). Such assets will include but not be limited to the following:

a. School/office furniture and equipment;

b. Computer hardware equipment;

c. Telephone equipment;

d. Vehicles;

e. Residence furniture and equipment;

f. Instructional materials;

g. Library materials.

The Fixed Asset Register must include the following details:

• date of acquisition of asset

• description of asset, a unique identification mark such as a serial number and security marking, bar coding where appropriate

• cost of the asset purchased

• location of the asset

• details of the disposal of any assets, whether scrapped, sold or donated

A copy of the Asset Register must be kept in a locked safe and be available for inspection in digital form. The register must be kept up-to-date and be reviewed at least once a year.

An annual physical inventory of all accountable property will be conducted based on a schedule determined by the Head of School or their designate. The review must be performed by someone other than the person maintaining the register. The asset register should be certified and dated on completion of the review.

B. Depreciation

The depreciation rate will be in line with the accounting standards and as recommended by the auditors from time to time.

Cross References:4.200 - Financial Accountability 4.210 - System of Accounts

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.250

Section: SECTION 4: FINANCIAL MANAGEMENT

Financial Audit

FINANCIAL AUDIT

The Board will commission an annual internal and external financial audit performed on all School accounts following the close of each Fiscal Year. The Board will appoint an independent external auditor on the recommendation of the Finance Committee after doing the due diligence to conduct this audit which must show all monies collected, disbursed and retained, together with receipts and vouchers for monies disbursed. In addition to the above, the duties of the Board-appointed auditor will be to:

1. examine the balance sheet of the School as of the close of its Fiscal Year and the related statements of transactions in the various funds for the Fiscal Year then ended,

2. conduct this examination in accordance with the School’s financial management objectives and in compliance with applicable Accounting Standards and Generally Accepted Accounting Practices in India render an opinion on the financial statements prepared as of the close of the Fiscal Year,

3. make recommendations to the Board concerning its accounting records, procedures and related activities as may appear necessary or desirable,

4. perform such other related services as may be requested by the Board.

The audit will be completed by a qualified independent external accounting firm, registered in India and with expertise in Indian non-profit schools. No single external audit firm will perform the School's audit for more than three consecutive financial years and the Head of School will conduct an internal audit of the business systems operation and compliance, including an audit of financial procedures and management annually.

The approved auditors will begin their work as soon as possible and complete the audit by the end of June. Both the draft and final audit reports and accompanying management letter will be reviewed by the Treasurer prior to being submitted to the Board. Any recommendations included in the audit, will have a School management response for addressing such recommendations. The internal auditors should provide an opinion on the internal controls of all operations with special emphasis on any area specifically requested.

Cross References:4.000 - Budgetary and Financial Management Objectives 4.120 - Financial Years 4.200 - Financial Accountability 4.210 - System of Accounts 4.220 - Financial Reporting 4.230 - Management of School Trust Funds

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.300

Section: SECTION 4: FINANCIAL MANAGEMENT

School Income

SCHOOL INCOME

The majority of the School’s income is generated by the fees charged to the families of students attending the School. In order to offer the best educational opportunities possible for the School’s children, the Board encourages the School to seek outside sources of revenue, provided that the objectives or independence of the School are not placed at risk and that the School does not violate any regulations and conditions applicable to the School’s designation as a non-profit private trust registered under Section 10(23)c of the Income Tax Act of 1961 This subsection of the Board Policy Manual describes the sources of School income and the policies surrounding them.

1. School Fees This covers the four types of school fees assessed: application and registration fees, enrollment/re-enrollment fees and annual tuition fees. Specific policies describe payment terms, currency and method of payment, refunds, etc. In addition, the School chargesf miscellaneous fees as applicable.

2. External Sources of Income

This covers all outside funding sources and will include, but not be limited to the following

1. Reimbursement from use of School facilities

2. U.S. Government and other grants;

3. Fund-raising;

4. Gifts and bequests.

All such external sources of income or revenue must be permissible under the regulations and conditions associated with ASBET’s registration under Section 10(23)c of the Income Tax Act (ITA) 1961.

Non-Indian sources of income other than school fees are only permissible as and when ASBET receives regulatory approval under the latest amendments to the Foreign Contribution Regulation Act (FCRA) and is subject to associated regulations such as FEMA (Foreign Exchange Management Act)

Cross References:2.010 - Powers and Duties of the Board of Trustees 4.310 - School Fees 4.340 - Other Miscellaneous Fees and Charges 4.360 - Reimbursement for Use of School Facilities 4.370 - U.S. Government and Other Grants 4.380 - Fund Raising 4.390 - Gifts Acceptance

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.310

Section: SECTION 4: FINANCIAL MANAGEMENT

School Fees

SCHOOL FEES

The Board is responsible for setting school fees (such as registration fee, enrollment/re-enrollment fee, and annual tuition fee) annually, upon the recommendation of the Head of School and Finance committee. School fees are subject to change on an annual basis. However, it is the practice of the Board to give appropriate advance notice of changes, and to publish its current tuition and fees schedule for parent information. The School’s tuition fee is determined on an annual basis based on projected enrollment, non-tuition income, and projected expenses for the following Fiscal Year. A. Application Fee

All students who apply to the School will pay a non-refundable application fee at the time their application for enrollment is submitted.

B. Registration Fee

A one-time registration fee will be paid upon enrollment at the School. A second registration fee will not be charged for students who leave and re-enroll at the School within two school years. Students who re-enroll at the School after two years will only have to pay any incremental difference between the registration fee in force at the time of original enrollment and the current registration fee.

C. Enrollment Fees

Beginning November 1, 2015, the enrollment fee is non-refundable.

A second enrollment fee will not be charged for students who leave and re-enroll at the School within two school years. Students who re-enroll at the School after two years will only have to pay any incremental difference between the enrollment fee in force at the time of original enrollment and the current enrollment fee.

D. Annual Tuition Fee

Each student will pay an annual tuition fee for each year enrolled at the School. The fee amount charged by the School may be different depending on the grade level the student is scheduled to attend. For students who enroll after classes have begun, the tuition fee will be charged on the basis of start date as confirmed by the school and as detailed in Board Policy.

Student Invoices for all fees (registration fee, enrollment/re-enrollment fee, and annual tuition fee) will be issued annually. and , invoices for returning students will be issued prior to the start of the new school year as per the Financial Management Calendar. Invoices for new students willl be issued at the time of enrollment. Parents are responsible for prompt payment of such fees by the due date. The School does not take responsibility for informing employers who pay the fees for their employee’s dependents. The payment schedule, currency, method of payment and refunds are covered in other Board policies. If School capacity is reached, the Head of School, with Board approval, is authorized to assess a seat holding fee for current students. School capacity will be defined as 85% of the School’s maximum class size, of any given class indicating an intention to return on the “Intent to Return” survey. Other fees or charges may be assessed by the School for special needs services, admissions testing, examinations, lost items, after-school activities, etc. as specified in Board Policy. The Board authorizes the Head of School to determine the charges to be assessed for these miscellaneous fees.

Cross References:4.300 - School Income 4.315 - School Fees - Payment Schedule 4.320 - School Fees - Currency and Method of Payment 4.325 - School Fees - Late Payments 4.330 - School Fees - Special Payment Terms 4.335 - School Fees - Refunds 4.340 - Other Miscellaneous Fees and Charges 4.350 - Grants-in-Aid

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.315

Section: SECTION 4: FINANCIAL MANAGEMENT

School Fees - Payment Schedule

SCHOOL FEES - PAYMENT SCHEDULE

School fees will be paid in full, upon receipt of invoice or in accordance with the invoice. This policy specifies the payment schedule for the School’s tuition and other school fees.

1. Application Fee The application fee will be paid in full at the time a student’s application for enrolment to the School is submitted.

2. Registration Fee The registration fee will be paid in full upon enrolment at the School.

3. Enrolment/Re-enrolment Fee The enrolment/re-enrolment fee will be paid in a manner as approved by the Finance Committee.

4. Annual Tuition Fee Returning students are invoiced not later than May 1 , prior to the start of the new school year, with payment due by May 31, to reserve a place for the student. In case of such fees not received by the school on or before May 31, the student will be treated as withdrawn. Such students can reapply and will be treated as new enrolment.

In School capacity is reached and at the discretion of the Board, an approved fee may be assessed, due 30 days after invoice, to guarantee placement for the following year. This fee would be applied to the tuition if the child is present on the first day of school and not refunded if the child withdraws during the time period they have been guaranteed a place.

New students, are invoiced after completion of the registration formalities, with payment due within 15 days after the date of the invoice.

For students who enrol after classes have begun, the tuition fee is charged on a pro-rated basis as follows:

1. Start date before the end of December term (semester 1) – 100% of the tuition fee is payable

2. Start date after the end of December term (semester 1) – 50% of the tuition fee is payable

Parents are expected to pay all school fees on or before the due date to reserve a place for the student. In case of such fees not received by the school on or before the due date, the student will be treated as withdrawn. Such student can reapply and will be treated as new enrolment. Late payments will be subject to charges as described in Board policy 4.325.

Cross References:4.310 - School Fees 4.325 - School Fees - Late Payments 4.330 - School Fees - Special Payment Terms

Adoption Date: January 25, 2005 Last Revised: October 15, 2024

Policy: 4.320

Section: SECTION 4: FINANCIAL MANAGEMENT

School Fees - Currency and Method of Payment

SCHOOL FEES - CURRENCY AND METHOD OF PAYMENT

School fees will be paid in compliance with the regulations of the Government of India, either in USD or INR. All U.S. dollar payments are required to be made via a bank draft or electronic wire bank transfer to the School’s bank account.

Payments made in Indian Rupees as per Board policy may be made by check or wire transfer. For re-enrolling students choosing to pay in Indian rupees the exchange rate will be determined by the finance committee and it will be valid for the period May 1 to May 31. For new enrolling students the Indian Rupee equivalent will be at the conversion rate established by the Business Office on the date of billing. The conversion rate will be determined monthly (during the first week of the month) and based on the Reserve Bank of India exchange rate for dollar purchases rounded up to the nearest Rupee.

The Head of School will establish regulations in support of this policy as well as provide parents with the specific payment details they need in order to make the necessary payments to the School.

Any additional charges (when more than USD 50), incurred for electronic bank wire transfers of funds, including charges for confirming the receipt of payment, together with bank fees for collecting any charges incurred for returning bad checks or associated fees charged to the School will be passed on to the responsible parent or guardian. The Head of School will review this limit periodically . Any fee associated with the School bank transfer from one School bank account to another will be borne by the School.

Cross References:4.310 - School Fees

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.325

Section: SECTION 4: FINANCIAL MANAGEMENT

School Fees - Late Payments

SCHOOL FEES - LATE PAYMENTS

School fees must be paid on or before the due date. Fees not paid by the due date may be subject to an overdue charge. The overdue charge will be levied on unpaid balances even when exceptions for late payment are granted.

Failure to settle the bill by the due date may result in the student not being permitted to attend classes and withholding of report cards and academic records. In cases where a student withdraws from School with a balance due to the School, that student’s records will not be forwarded until all arrears (including any outstanding interest) are paid.

All delinquent accounts, above 60 days, will be reported by the Head of School to the finance committee f with recommended action. Potential action will include, but not be limited to, suspension, expulsion and/or pursuing legal remedies.

The Head of School may make exceptions under special circumstances for valid reasons and report the exceptions to the Finance Committee.

Cross References:4.310 - School Fees 4.315 - School Fees - Payment Schedule 4.330 - School Fees - Special Payment Terms

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.330

Section: SECTION 4: FINANCIAL MANAGEMENT

School Fees - Special Payment Terms

SCHOOL FEES - SPECIAL PAYMENT TERMS

The Board does not as a general rule support the establishment of special payment terms to assist students attending the school. However, the Board does recognize that some parents might have difficulties in making scheduled tuition payments.

To that end, the Board authorizes the Head of School to consider deferred payments or special payment terms in extreme and/or unusual cases and when it is in the best interests of the School and the student to do so. This will be done on a case-by-case basis and upon written presentation of the circumstances said to justify an exception to the published fee payment schedule.

Individuals whose circumstances require them to seek relief from full payment of school fees in advance must apply in writing to the Head of School requesting such relief, citing specific reasons why the applicant cannot comply with the fee payment requirements. The Head of School will have a procedure in place to evaluate such applications and report any terms to the Finance Committee.

As a minimum, one half of the tuition fees for the semester will be paid in advance of the student’s attendance at the School.

The Board expects that all outstanding accounts will be settled before the end of each school year. In only exceptional circumstances approved by the Board, will a child be accepted for continuing enrolment if school fees and/or surcharges from the previous year, have not been cleared from the account.

Cross References:4.310 - School Fees 4.315 - School Fees - Payment Schedule 4.325 - School Fees - Late Payments

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.335

Section: SECTION 4: FINANCIAL MANAGEMENT

School Fees - Refunds

SCHOOL FEES - REFUNDS

Tuition and fees will be refunded in accordance with Board policy and associated regulations. To receive a refund, parents must have completed and submitted a withdrawal form, before the last day of school for a student (withdrawal date), that indicates to whom or to what organization the refund should be directed. Refunds will be made in USD or Rupees in compliance with the regulations of the Government of India.

A. Application Fee

Once paid, the application fee is not refundable whether or not the student enrolls at the School.

B. Registration Fee

The registration fee is not refundable unless the School refuses to admit a student. In the cases where a student is not admitted, and the registration fee has already been paid, the School will refund the registration fee less an application processing fee.

C. Enrollment Fee

The following stipulations indicate the amount of refund that will be provided for enrollment fee.

August 2008 Onward:

August 2008 onward, for all newly enrolled students, the enrollment Fee will be 100% non-refundable.

D. Annual Tuition Fee

For students for whom the tuition fee has been received by May 24, if written withdrawal notification is received through a completed withdrawal form, annual tuition fee will be refunded as follows:

• On or before May 24 - the entire tuition fee will be refunded along with the enrollment/re-enrollment fee, as applicable.

• After May 24, but before June 8 – 90% of the tuition fee will be refunded along with the enrollment fee, as applicable.

• After June 8, but before August 1 – 50% of the tuition fee refunded along with the enrollment/re-enrollment fee, as applicable.

In cases of mid-year withdrawal: For existing students for whom the tuition fees for the year have been paid and who subsequently provide written notification of withdrawal (withdrawal form) to the ASB admissions office, refund may be provided as follows:

• by November 1st and for students whose last day of school will be on or before the last day of December Term (semester 1) – 50% of the tuition fee will be refunded.

• after November 1st and whose last day of school is after the last day of December Term (semester 1) – no refund is applicable.

In case of student withdrawal as specified in Policy 8.340, the refund policy as stated herein will apply.

All refunds of fees will be made as per Board policy and only to the individuals or agencies as authorized in writing by the parent/guardian.

In the case of a permanent closure, tuition, enrollment/re-enrollment fees and other fees will only be refunded after the discharge of all other obligations of the ASB Trust and the School

Cross References:4.310 - School Fees 4.710 - School Closure

Adoption Date: January 24, 2008 Last Revised: October 15, 2024

Policy: 4.340

Section: SECTION 4: FINANCIAL MANAGEMENT

Other Miscellaneous Fees and Charges

OTHER MISCELLANEOUS FEES AND CHANGES

The Board authorizes the Head of School to charge such other fees as are deemed necessary to cover the costs of additional services or facilities. The Head of School will establish regulations for the assessment of such miscellaneous charges including the fee amounts, payment terms and whether such fees are refundable. Such other fees include, but are not limited to, the following:

1. Academic Support Fees In exceptional cases, where additional personnel are hired to provide special needs services, parents will be billed for the cost of the service and notified in advance.

2. Examination Fees The fee payable for students to sit for public examinations (such as AP examinations, SAT examinations, home country examinations) will be charged to the students who intend to take those examinations. The fee is non-refundable and payable in advance. The level of the fee charged will reflect the fee payable to the Examination Board.

3. Loss of Educational Materials, Library Books, Uniforms, Equipment Fees In the case of loss of school materials, library books, school uniforms or equipment by School personnel or students, the Administration is authorized to assess reasonable charges for replacement of such item(s) to be billed to the party responsible for such loss. If the lost item is later found, the fee charged may be refunded. Reasonable judgment in assessing fees will be applied with final discretion left to the Head of School.

4. School Property Damage In the case a student damages or destroys School property, the student will be responsible for the costs of repair, restoration or replacement of the property.

5. Co-Curricular Activity Fees Additional fees may be charged for students who wish to take part in certain co-curricular activities organized or hosted by the School. The Head of School will set such fees. This fee will be payable in advance and is non-refundable except in the case where the School cancels the activity.

6. Transportation Fees In the case where a student enrolls in the school facilitated transport, an additional fee will be assessed. The Head of School will set such fees. The fees will be payable in advance and are non-refundable except in the case of any route canceled by the School.

7. Travel Expenses In select activities which require travel, the School will bill parents for the actual cost incurred to attend any event. This is generally transportation, hotel, and meal expenses.

Cross References:4.310 - School Fees 7.420 - Academic Support Program 8.260 - Vandalism/Damage to Property

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.350

Section: SECTION 4: FINANCIAL MANAGEMENT

Grants-in-Aid

GRANTS-IN-AID

Grants-in-Aid are intended to assist currently enrolled families facing unexpected financial hardship that jeopardizes student enrollment at ASB and families that are a mission fit but do not have the financial means to come to ASB. The Board permits the Head of School to award Grants-in-Aid to students when it is in the best interest of the School to do so. Grants-in-Aid are awarded by the Head of School, who will report such grants to the Board.

Grants-in-Aid will only be applied to tuition expenses and cannot be used to cover registration, enrollment/re-enrollment fee, or any other school related fees. All siblings will be eligible to receive a grant in the same year. Each year, the Head of School will report the number of student recipients and total grant money awarded to the Finance Committee.

Applications for Grants-in-Aid will be made to the Head of School. Applicants must fill out a Grant-in-Aid Request form which can be obtained from the Head of School’s office. The form will be incorporated as part of the Business Control Manual. Grants for current students typically should not exceed 25% of the tuition payable. Total grant for a school year should not exceed 0.6 percent of the annual operating budget. Initial grants are awarded for one or two years and will be reviewed, for extension, thereafter at the Head of School’s discretion.

• Grants-in-Aid will be awarded on the basis of financial need as determined by the Head of School. Situations likely to precipitate such need include, but are not limited to employment being terminated, sudden changes in corporate policy, death, or permanent disability, mission fit family without financial means.

• The Head of School will employ appropriate process and guidelines, including submission of appropriate financial information, to assist in the decision-making.

• Applications for Grants-in-Aid can be submitted at any time. The Head of School can establish a timeline to manage the submission process. Grant decisions will be made with consideration for the school fee payment timeline outlined in Board policy.

• Preference for Grants-in-Aid will be given to students enrolled in grades 11 and 12.

• Grant-in-Aid will not be given to Prekindergarten students.

• Students who are dependents of employees of organizations that either pay or are reimbursed their tuition fees are not eligible for Grants-in-Aid.

Any specific directives connected with Grants-in-Aid which are in conflict with these guidelines must be approved by the Board of Trustees.

Cross References:4.310 - School Fees 4.315 - School Fees - Payment Schedule

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.360

Section: SECTION 4: FINANCIAL MANAGEMENT

Reimbursement for Use of School Facilities

REIMBURSEMENT FOR USE OF SCHOOL FACILITIES

The Board recognizes the use of School’s facilities by outside organizations/groups/parents when the School and/or its facilities are not being used and authorizes the Head of School to establish regulations for the management of such.

The Board supports the charging of a fee to cover the costs, such as utilities, custodial services, etc., associated with use of the facilities and authorizes the Head of School to determine the fees to be assessed.

The Head of School will also develop procedures for the collection and proper recording of all fees in association with use of the School’s facilities. These procedures will be in-line with the policies for school income and financial management and in full compliance with regulations associated with Section 10(23)c of ITA of 1961 and its amendments which govern ASBET.

Cross References:4.300 - School Income 5.020 - Use of School Facilities 9.210 - Community Use of School Facilities and Equipment

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.370

Section: SECTION 4: FINANCIAL MANAGEMENT

U.S. Government and Other Grants

U.S. GOVERNMENT AND OTHER GRANTS

Regulations Needed The Board of Trustees recognizes that the United States Department of State Office of Overseas Schools (known as A/OS) is an active supporter of the School. A/OS annually provides support money to overseas American schools for school programs and services and for the purchase of special equipment, special program supplies, etc. The funds are generally provided to ensure that the school maintains a high standard of education for children of U.S. Government personnel, and to encourage an understanding of American education.

Each year, the Head of School will make efforts to determine whether the school is eligible for U.S. Government assistance.The Head of School will prepare and submit the necessary grant request application forms in accordance with the required submission schedule.

The Board encourages and authorizes the Head of School to seek other grants from private corporations and others in accordance with the regulations of the Government of India to assist in the funding of the School.

The funds realized through A/OS and other grants will become a part of the School’s budget, and will be included in the scope of the annual financial audit.

Cross References:4.100 - Annual Operating Budget 4.250 - Financial Audit 4.300 - School Income 4.380 - Fund Raising 4.390 - Gifts Acceptance

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.380

Section: SECTION 4: FINANCIAL MANAGEMENT

Fundraising

FUNDRAISING

The Board supports the solicitation of funds in the name of the School or any of its organizations upon prior approval from the Head of School. Further solicitations, canvassing, partnerships, donations in kind, and fundraising efforts that have as their goal US $1,000 or more (or the Indian Rupee equivalent) per donation must be approved by the Head of School and in accordance with the regulations of the Government of India

The Head of School will develop procedures in support of this policy, so there is a clear understanding of the goal of the fund-raising effort, school role/involvement in the effort, name(s) of the sponsoring group(s) and intended use(s) of the amounts raised. All such procedures must also outline the parameters associated with regulations associated with the Government of India. At present funds may not be raised from non-Indian sources until ASBET receives its FCRA clearance.

Cross References:4.300 - School Income 4.370 - U.S. Government and Other Grants 4.390 - Gifts Acceptance 8.510 - Student Activity Funds and Fund Raising

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.390

Section: SECTION 4: FINANCIAL MANAGEMENT

Gifts and Donations

Gifts and Donations

The Gift and Donation Policy of the American School of Bombay (ASB) as well as the School Income and Fund-Raising policy outlines the principles, rules, and guidelines to be followed for the acceptance of gifts and donations. This policy and Indian Law shall govern the acceptance of gifts and donations, and the funds shall be administered under the supervision of ASB’s Board in accordance with this policy. The Head of School is responsible for establishing procedures to ensure that all donations are in compliance with Indian Law and regulations and fit the Mission of the School.

With all gifts and donations, the donor receives no benefit and requires nothing in exchange beyond an assurance that the intent of the contribution will be honored.

Restrictions on Gifts and Donations:

The American School of Bombay will accept unrestricted gifts and donations, as well as gifts and donations for specific programs and purposes, provided that such gifts are consistent with the School’s mission, purposes, and funding priorities identified by the Board and Head of School. With gifts and donations, donors do not have specific control over School expenditures or work performed, and there should be no donor expectation of any benefit in return.

Acceptance of Gifts and Donations:

. The Head of School will coordinate all fundraising activities with the following objectives:

• to ensure consistency with the ASB Mission, Vision, and Core Values;

• to avoid conflict and duplication of efforts in each fundraising program;

• to maximize donations received from potential donors; and

• to provide a complete report of all gifts donated to ASB.

If a student, class of students, or student organization wishes to make a gift to the School, they will seek approval from the Head of School. The solicitation of gifts on behalf of the School from students or others will require prior written approval of the Head of School.

Cross References:2.010 - Powers and Duties of the Board of Trustees 2.050 - Trustee Conflict of Interest 4.010 - Conflict of Interest 4.380 - Fund Raising 6.440 - Staff Conflicts of Interest 9.130 - Gifts and Solicitations

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.400

Section: SECTION 4: FINANCIAL MANAGEMENT

Depository of Funds

DEPOSITORY OF FUNDS

All funds received by the School will be deposited in secured accounts in banks designated by the Board. Upon the recommendation of the Head of School and the Finance Committee, the Board will authorize the establishment of checking, savings and investment accounts for the depositing and investment of school funds.

Accounts and investments will be established and managed to obtain maximum return available at the time of deposit consistent with security, safety, necessary liquidity and in compliance with the guidelines u/s 10 (23c) of the Income Tax Act and applicable guidelines for not for profit trusts in India. It is not the Board’s intention to put the School’s deposits or investments at risk in an effort to maximize the returns from interest. The security and emergency availability of these assets will be carefully considered, along with high quality service in determining the bank of primary deposit.

All school funds will initially be deposited in checking accounts in depositories approved by the Board. Rupee funds will be deposited in Board-approved banking institutions with offices located in Mumbai. Based upon the operating balances necessary for the operation of the School in rupees and dollars, the Head of School will transfer excess funds from its checking accounts to savings and/or investment accounts, in accordance with guidelines established by the Finance Committee.

The bank depository decision along with any investments will be reviewed by the Head of School and Finance Committee bi-anually to determine the safety and liquidity of the funds on deposit or invested as well as the investment rates offered along with other services of value to the School. The results of that review and any recommendations for change will be presented to the Board for approval. In addition, other accounts may be opened as necessary with the approval of the Board semi-annually.

No investment of school funds with maturity of more than 12 months will be made without the approval of the Head of School and the Finance Committee.

Cross References:4.000 - Budgetary and Financial Management Objectives 4.200 - Financial Accountability 4.410 - Authorized Signatures 4.420 - School Investment Program

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.410

Section: SECTION 4: FINANCIAL MANAGEMENT

Authorized Signatures

AUTHORIZED SIGNATURES

The Board will, upon the recommendation of the Board Finance Committee and Head of School, approve the authorized signatories for the School account(s). Only Board approved persons are authorized to sign checks and transfer funds.

The Head of School and their designee has the authority to operate all accounts, subject to the requirements of authorized signatures.

Two signatures are required on all checks written on behalf of the School and towards transfer of funds. The signatory requirements for each spending level are noted below. In each case, the limit applies to both U.S. dollars and the Indian rupees equivalent.

Checks and transfer of funds not exceeding USD 50,000 (USD fifty thousand) must be signed by the Business Manager and Director of Operations and Finance.

Checks and transfer of funds for amounts in excess of USD 50,000 (USD fifty thousand) up to USD 100,000 (USD hundred thousand) must be signed by the Business Manager or DOOFand Head of School.

Checks and transfer of funds for amounts in excess of USD 100,000 (USD hundred thousand) must be signed by the DOOF or HOS and a Board member.

The School’s Inter bank account transfers and placing of fixed deposits must be signed by the Business Manager and DOOF or Head of School..

The Board also reserves the right to authorize any additional signatories as may be required.

Cross References:4.400 - Depository of Funds 4.500 - Purchasing Authority and Guidelines 4.600 - Disbursement of Funds 4.610 - Payment for Goods and Services

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.420

Section: SECTION 4: FINANCIAL MANAGEMENT

School Investment Program

SCHOOL INVESTMENT PROGRAM

The Board authorizes an investment program where the primary objective is to provide safety and liquidity of capital and thereafter to obtain appropriate yield to supplement other revenues for the support of the School's educational program.

A Excess funds, defined as funds not anticipated to be needed for periods in excess of one year, should be held in interest bearing accounts or investments to carry the maximum return possible on the funds available for investment. The safety of funds should be paramount and that investment practices must be in compliance with the guidelines u/s 10 (23c) of the Income Tax Act and applicable guidelines for not for profit trusts in India.

The investment program will be administered to ensure:

1. A continuous process of temporary investing of fund balances and all monies available for investment purposes, through the use of quotations, to obtain a reasonable yield commensurate with safety and liquidity of capital on all investments.

2. A maintenance of a cash flow analysis that will provide data to assist proper planning and decision-making regarding amount, duration, and type of investments.

3. The assurance that all School investments will remain in compliance with the regulations and laws of the Government of India and of the country in which the investments are made.

4. No investments have maturity of more than 12 months without prior approval of the Head of School and the Board Treasurer. Details of such investment would be presented to the Finance Committee.

The Board authorizes the Head of School or his/her designee to manage all activities associated with the investment program with the Board’s Finance Committee in such a manner as to accomplish the objectives of this policy. Their responsibilities will include a bi-annual review in August/September and January/February and assessment of the School's investment program and the filing of a report and recommendations bi-annually with the Board Treasurer

The Board authorizes the following individuals to have full power to make investments and to sell, transfer, and negotiate existing investments with Board-approved financial institutions, as follows: the President, Vice President or the Finance Committee Chairperson jointly with the Head of School or Business Office

The Head of School is further authorized to execute, in the Board's name, any and all documents relating to the School’s investment program in a timely manner and to confer with reputable consultants regarding investment decisions when necessary. The Head of School or his designee will make a bi-anually report of investments to the Finance Committee .

Cross References:4.000 - Budgetary and Financial Management Objectives 4.400 - Depository of Funds 4.410 - Authorized Signatures

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.430

Section: SECTION 4: FINANCIAL MANAGEMENT

Monies on School Premises

MONIES ON SCHOOL PREMISES

All money collected at School, either through cash or checks or transfer of funds, will be handled in accordance with generally accepted accounting procedures and prudently safeguarded.

All money collected by School employees will be turned into the Business Office on a daily basis for receipting and accounting and then directed without delay to the proper facility for deposit. In no case, will money be left overnight at the School, without being properly secured in safes provided specifically for the safekeeping of money/valuables.

when the total amount of cash on hand exceeds US$5,000 or the Indian rupee equivalent, the funds should be deposited in the bank during banking hours if possible, in order to avoid leaving money in the School overnight, or the next business day.

The Head of School will be responsible for establishing procedures for the proper handling of all moneys on the School premises as well as defining the maximum amount of funds that given departments/groups may be holding at any point in time.

Cross References: 4.400 Depository of Funds 4.440 Bonded Employees and Insurance 4.630 - Petty Cash Accounts

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.440

Section: SECTION 4: FINANCIAL MANAGEMENT

Bonded Employees and Insurance

BONDED EMPLOYEES AND INSURANCE

All Trustees and all employees who handle School funds, including their supervisors, will be bonded and included under a blanket fidelity guarantee insurance policy which will indemnify the School against loss.

Cross References:4.430 Monies on School Premises 4.630 - Petty Cash Accounts 5.320 - School Insurance Programs

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.500

Section: SECTION 4: FINANCIAL MANAGEMENT

Purchasing Authority and Guidelines

PURCHASING AUTHORITY AND GUIDELINES

The Board authorizes the Head of School or his/her designee to purchase and supervise the purchasing of all books, supplies, equipment, services and other materials as are required to meet the educational and operational needs of the School and as permitted within the limits of the approved operating budget. The purchase of these items will require no further approval of the Board except in those instances where stated otherwise in Board policy.

The Head of School will be responsible for the development and enforcement of written procedures for the purchase of all materials and services. Such procedures will be included in the Business Control Manual, Procedures in support of this policy will ensure that:

1. Appropriate accounting procedures are followed, including proper documentation, supervisor signature approval and accurate account assignment;

2. Purchases will be planned in a timeframe that permits the receipt of the items in a timely manner to meet school requirements;

3. Purchases will be made to ensure that the items are of the highest quality without sacrificing sound business sense;

4. Purchase orders will not be placed, or purchases made, without a review of existing materials on hand to assure that no unnecessary duplicating of these materials occur;

5. Purchasing will be done on a competitive basis among vendors, with the objective of obtaining the best quality at the lowest possible price consistent with the timely needs of the School;

6. Expendable and capital items will be purchased locally whenever possible and when cost-effective;

7. Vendor contracts will be awarded in accordance with Board policy on contracts and bidding, and there will be no conflict of interest in the vendor selection process;

8. Purchases will not cause the expenditures in a major budget category to exceed the allowances provided for in Board policy 4.110 (Budget Administration);

9. Except in emergencies, or for reasons of economy, the annual purchase of major items of equipment, to include vehicles, appliances, etc., will be planned to avoid major fluctuations in expenditure trends from year to year;

10. All capital purchases or contracts:

• Up to USD 250,000 to be approved by the Head of School and in excess, must be approved by the Finance Committee / Treasurer. Such items will normally be included as part of the budget approval process;

1. In a case of regularly consumed materials, a rate contract can be negotiated for the year upon receiving competitive bids from vendors;

Cross References:4.000 - Budgetary and Financial Management Objectives 4.010 - Conflict of Interest 4.100 - Annual Operating Budget 4.110 - Budget Administration 4.510 - Procurement of School Supplies and Materials 4.520 - Contracts and Bidding 4.600 - Disbursement of Funds

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.510

Section: SECTION 4: FINANCIAL MANAGEMENT

Procurement of School Supplies and Materials

PROCUREMENT OF SCHOOL SUPPLIES AND MATERIALS

The Head of School will be responsible for ensuring that appropriate accounting procedures be implemented and followed for the procurement of all School supplies, equipment and other materials.

Vendors are appointed only after going through a sourcing procedure, which evaluates vendors on price, quality, delivery, credit terms, after sales service, etc. The sourcing procedure will be as defined in Board policy on contracts and bidding. Vendors will be re-evaluated each year and recorded in the Business Office for future reference.

Adequate inventory should be maintained so as not to disrupt either the instructional program or operations if overseas procurement is delayed or supplies are backlogged.

Cross References:4.100 - Annual Operating Budget 4.110 - Budget Administration 4.500 - Purchasing Authority and Guidelines 4.520 - Contracts and Bidding

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.520

Section: SECTION 4: FINANCIAL MANAGEMENT

Contracts and Bidding

CONTRACTS AND BIDDING

The Head of School will be responsible for negotiating and executing contracts within the Board approved budget and in accordance with the terms of this policy. In addition, the Head of School will develop processes necessary to carry out the intent of the policy. The processes to be followed for the different types of contracts are outlined below:

1. Faculty Housing Contracts. The Head of School or their designee will be responsible for negotiating and executing all staff housing contracts. A review of the rental agreements will be done every two years.

2. Purchasing and Maintenance Contracts. The Head of School or their designee will award contracts for the procurement of School supplies, equipment and other materials, as well as maintenance services in accordance with the contract limits below, except that in the case of contracts below NR 500,000, the Head of School may exercise their discretion as to whether three quotations are required.

3. Facilities Construction Contracts. The Head of School or their designee will be responsible for assessing the School’s facilities requirements and when appropriate recommending new construction or major renovations to be undertaken. The Head of School will bring the project plans to the Board with background information, cost estimates, line account details and recommendations. If the Board agrees to action, the contract limits outlined below will be followed

4. Original Service or Project Contracts. The Head of School or their designee may award service or project contracts in accordance with the contract limits below. All original service or project contracts are required to follow the School’s standard bidding, procedure, regardless of the size of the contract.

5. Continuing Service Contracts. Upon the recommendation of the Head of School, the Board may waive the requirement to bid a continuing service contract. However, no contract may continue more than three successive years without being resubmitted to a bidding process. If a service contract is not renewed, standard bidding procedures as outlined in Board policy will be followed.

For all contracts in which multiple vendors or providers may be able to offer the goods or services as required by the School, a standard bidding procedure will be followed. For purposes of this policy, the value of a contract with any individual vendor will be defined as the aggregate value over a 12-month period.

1. Service contracts above USD 50,000 or equivalent Indian Rupee will be awarded only after obtaining three or more written quotations and approval by the Head of School.

2. Service contracts under USD 50,000 or equivalent Indian Rupee can be awarded by DOOF and Business Manager abut only after obtaining three or more written quotations. ​​​​​​​The Head of School will be responsible for developing a bidding procedure in compliance with Board policy and the School’s financial management objectives. This procedure will be approved by the Board Finance Committee and included in the Business Control Manual.

Cross References:4.100 - Annual Operating Budget 4.500 - Purchasing Authority and Guidelines 4.510 - Procurement of School Supplies and Materials 5.010 - Faculty Housing

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.610

Section: SECTION 4: FINANCIAL MANAGEMENT

Payment for Goods and Services

PAYMENT FOR GOODS AND SERVICES

The Head of School will be responsible for ensuring that appropriate accounting procedures be implemented and followed for the procurement of all School supplies, equipment and other materials. The Head of School will make payments in advance of goods or services received in specified cases only and as per the Business Control Manual

Payroll and employment contractual payments to regular staff members, substitutes and others will be paid through the Business Office in accordance with the Personnel policies contained within Section 6 of this Board Policy Manual. Any other special payments to School personnel for services rendered or expenses incurred must have the approval of the Head of School or authorized designee and must be accompanied with a written explanation for the payment.

All vendors, suppliers, employees and others will be paid in a timely and consistent manner in accordance with Board policy and regulations. The Head of School will establish procedures for timely and accurate payments, as well as for handling payment questions or disputes as per the contracts.

Cross References:4.200 - Financial Accountability 4.410 - Authorized Signatures 4.600 - Disbursement of Funds 4.640 - Expense Reimbursement for School Employees and Others 6.560 - Payment of Staff Salaries

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.640

Section: SECTION 4: FINANCIAL MANAGEMENT

Expense Reimbursement for School Employees and Others

EXPENSE REIMBURSEMENT FOR SCHOOL EMPLOYEES AND OTHERS

Board members, School employees and other authorized individuals will be reimbursed by the School for authorized expenses incurred in service to the School and approved by the Head of School or their designee. Reimbursement of expenses must be within the scope of the approved budget and in accordance with Board policy and regulations.

The Head of School or their designee is authorized to approve a travel advance to any employee traveling on official School business.

The Head of School will establish and implement regulations that clearly define the types of expenses that are reimbursable, documentation requirements and submission procedures.

Cross References:4.600 - Disbursement of Funds 4.610 - Payment for Goods and Services 6.535 - Expenses and Expense Advances 6.620 - Professional Development Program

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.650

Section: SECTION 4: FINANCIAL MANAGEMENT

Emergency Expenditures

EMERGENCY EXPENDITURES

The Board recognizes that emergencies may occur which may require the need for non-budgeted expenditures or may cause expenditures to exceed the line-item allocations in the annual operating budget. When circumstances justify the need to meet these unforeseen or unplanned requirements, the Head of School is authorized to incur obligations in accordance with Board policy 4.110 (Budget Administration). The Head of School will report any such adjustments and obligations in the quarterly Board financial reports.

Cross References:4.100 - Annual Operating Budget 4.110 - Budget Administration 4.220 - Financial Reporting 4.500 - Purchasing Authority and Guidelines

Adoption Date: January 24, 2005 Last Revised: October 15, 2024

Policy: 4.700

Section: SECTION 4: FINANCIAL MANAGEMENT

Donation and Disposal of School Property

DONATION AND DISPOSAL OF SCHOOL PROPERTY

The Board authorizes the Head of School to donate or dispose of any School property that is not destroyed through use, in a manner which is beneficial to the School’s interest. A record will be kept of all donated or disposed property and all proceeds derived from the sales of such property will be properly accounted for.

School property for purposes of this policy will be defined as furnishings, equipment, books, supplies, vehicles and the like. It does not include any real estate or buildings (fixed or mobile) that the School may own or lease. Such items will be handled on a case-by-case basis with approval required by the Board before any action is taken.

The manner by which such items will be donated or disposed of will be dependent on its salvage value as follows: If sold, quotations will be needed for any item valued over INR 50,000. For any item over INR 200,000, approval is needed from the Head of School. For any item over INR 5,00,000, approval is needed from the Board:

1. Property with a salvage unit value over INR 50,000 or less may be donated or disposed of at the best possible price without advertising or receiving quotations;

2. Property with a salvage unit value of over INR 50,000 and INR 200,000 may only be sold by inviting quotes;

3. Property with a salvage unit value of over INR 200,000 and INR 5,00,000 may only be donated or disposed of after approval from the Head of School.

4. Property with a salvage unit value of over INR 5,00,000 may only be donated or disposed of after approval from the authorized signatory of the Board.

Proceeds from the disposal of all School property, supplies and equipment will be appropriately recorded in the School’s accounting records.

Cross References:4.200 - Financial Accountability

Adoption Date: January 24, 2005 Last Revised: October 15, 2024