Instructions for Completing Financial Form

Note:

• Data should be expressed in USD based on the average exchange rate for the school year.
• Historical financial data should match school’s audit statements.

SOURCES:

Tuition Fees (Gross) – Report as though all students enrolled paid the full tuition.

Less Financial Aid – Report the total financial aid granted for students who are not eligible for tuition remission.

Less Tuition Remission – Report the total tuition remission granted to school employees.

Net Tuition Income – Tuition Fees (Gross) – Less Financial Aid – Less Tuition Remission

Building/Capital Fund Fees – Schools that charge continuing and/or new students a special fee (e.g. “building fees”, “capital fund fees”, “registration fees”, or “entrance fees”) should report the total revenue from this source on this line.

Interest/Investment Income (Realized) – Report the actual interest and other investment income that is realized AND applied to operations for each year. DO NOT report gains or losses on investments such as endowment funds that are not cashed out and applied to the current year’s operations.

Gifts/Fund-Raisers for Operations – Report all receipts from gifts, grants, special events and other fundraising activities that are applied to operations for each year.

Aid from Governmental Sources – Report any aid the school receives from governmental sources (do not include tuition payments for children of employees of government agencies).

Income from Unrelated Business Activities – If the school earns money from unrelated business activities and applies this money to operations, report the amount here.

Other Income – Report all other income on this line including any other fees, auxiliary activities, miscellaneous income, etc.

Transfers from Endowment – Report the total transferred from endowment (or other investment funds) that is applied to operations for each year.

Transfers from Plant Fund – Many schools periodically set aside funds from operations into a fund to meet the cost of repairs and replacements to the plant when needed. Report any transfers from such a fund if applicable for each year.

Total Revenue – Report the total of Net Tuition Revenue plus the other eight categories.  

USES:

Salaries and Benefits - Report the total of all salaries and benefits for school employees.  

Instructional Expenses - Report all instructional expenses excluding salaries and benefits.

Administrative Expenses - Report all administrative expenses excluding salaries and benefits.

Professional Development Expenses - Report the total spent on workshops, conferences, course work, etc. for faculty and staff.

Physical Plant Expenses - Report all expenditures for the physical plant that are paid for out of operations for each year. This should include repairs or replacements that are paid for out of the Plant Fund. Some schools pay for these expenses out of operations for the year but then transfer certain capital expenditures to a capital account or a property account in the audited statement. We ask that schools report all expenses for the physical plant in this form EXCEPT for major capital projects such as a new building that are not typically annual expenses.

Debt Service - Report all interest and principal payments on both short and long-term debt including interest payments for credit lines, if applicable.

Transfers to Plant Fund - Report the amount transferred to a plant fund or similar fund that is for the purpose of meeting future repair and replacement expenses.

Cash Transfers to Fund Depreciation – A relatively small number of schools fund some portion of depreciation on an annual basis. Report amount set aside to fund depreciation if this applies.

Other Expenses - Report any other expenses that did not fit in the line items above including local corporate taxes.   

Total Expenditures and Transfers – Report the total of nine categories under USES.

USES OF SURPLUS:

Additions to Operating Reserves - Report the amount of any surplus that is maintained in an operating reserve account.

Additions to Endowment – Report any surplus that is transferred to endowment.

Return to Owner(s): - Proprietary schools are asked to report the amount of any surplus that is returned to the owner(s).

COVERAGE OF DEFICIT:  

Reduction of Operating Reserves – Report the amount that operating reserves were reduced to meet any deficit from operations.

Debt Incurred to Cover Deficit – Report any funds borrowed to cover a deficit.

Contributions from Owners – Proprietary schools should report any contributions from owner(s) to meet an operating deficit. If the owner(s) lend the money to the school to cover a deficit, this amount should be reported under “Debt Incurred to Cover Deficit.”

Total Outstanding Debt – Report the total outstanding debt as of the close of the fiscal year.

Total Cash Reserves - Report the total cash reserves as of the close of the fiscal year.