Annual Reports Annual Report 17-18 - Page 28

Executive Committee President - Carl Grobien Vice President - Rodrigo Lobo Treasurer - Juan Morales Secretary - Patricia Garza Financial Investment Committee Committee Chair / Treasurer - Juan Morales Committee Members - Dionisio Garza, Eugenio Garza, Gustavo Romo, Carl Grobien, Michael Adams, Luis Carlos Reyes Goals of the Committee Background - Ensures congruence between the monthly financial reports and the budget. The Financial Investment Committee met on multiple occasions during the past school year to carry out its responsibilities and as a result present the following executive summary. - Analyzes and proposes to the board the yearly operational budget and the capital projects. - Guarantees endowment fund compliance according with the ASFM investment policy statement. American School Foundation of Monterrey, A.C. (ASFM) is an international school authorized by the Mexican government to operate as a non- profit organization. Among other benefits, this allows ASFM to receive donations and provide tax deductible receipts. This also gives the school tax exempt status. This, plus the fact that no dividends or returns are paid to investors and shareholders, allows ASFM to reinvest all resulting funds and therefore deliver a top quality educational program. Operation Projected Results The projected operational revenue for school year 2017–18 finished slightly under budget. This amount is MXP $6.2 million short of the targeted budget mainly because more academic Bach scholarships were awarded and the exchange rate was lower than expected. Total expenses are projected to be 5.4 % lower than budgeted. Insurance, Public Services, and Miscellaneous expenses are expected to be below budget while Academic Materials, IT, and Maintenance are expected to be on budget. Salaries are projected to end up 4.5% below budget. This is mainly the result of a better exchange rate than initially estimated. Financial income is projected to be above budget mainly because of the continued increase in interest rates. Total cash flow available for investments is expected to be 174.6% above budget. This is mainly because of the favorable exchange rate and expense reductions. School Board