Financial Statements

Report from the Finance Committee

The enrolment was 356 full fee-paying students at the end of the year, which was 2% more than the prior year. The comprehensive surplus for the year was LKR 487.6 Mn. with an operating surplus of LKR 137.5 Mn. The operating result was better than expected primarily due to currency gains and savings on income tax due to statutory changes. Included in the comprehensive surplus are revaluation of property and land amounting to LKR 453.6 Mn. (excluding deferred taxes) as per the assessment of an independent valuer.

The rupee depreciated during the year with an opening rate of LKR 178.26 to a US dollar at the beginning of the school year and LKR 188.26 at the end. There was an exchange gain of LKR 67.1 Mn. (USD 356,600) on the revaluation of the School’s foreign currency reserves.

Direct expenditure increased by LKR 63.2 Mn. primarily due to the Rupee depreciating against the US dollar. Increases in other operating expenses reflects the re-accreditation process which the School successfully completed during the 2019/20 school year.

OSC salaries for expatriate teachers are regularly benchmarked against other international schools.

OSC expat teacher salaries are in the mid-range, ensuring the quality of education and the school’s financial sustainability.

Capital expenditure was mainly allocated towards improving the IT infrastructure of the School which included upgrading instructional technology items, upgrading safety and security of the premises and operationalising Covid-19 requirements on campus. The security improvements are covered mostly by the Security Grant provided by the US Embassy.

During the year a five year financial plan was developed with a view to maintaining financial stability while at the same time investing in the school to improve the overall academic experience. As an outcome the Board approved the total renovation of the School’s science labs and upgrading the front entrance of the School with enhanced security measures. These projects will be completed in the current school year. In view of the uncertainty created by Covid-19 the plans for constructing a new gymnasium were put on hold.

The Board will continue to focus on the financial stability of the School and ensuring adequate resources are available for maintaining and improving the School’s infrastructure whilst providing an excellent academic experience for our pupils.