Minutes of Meeting - Singapore American School

Minutes of Meeting
Finance Committee Meeting
September 5, 2011
Biz Center Board Room American Club
7:30 am
Present were Finance Committee members, Devin Kimble, Joe Anderson, Oral Dawe,
Catherine Poyen, Brent Smith, Maria Warner Wong, Superintendent Dr. Brent Mutsch, Director
of Finance William Scarborough, and the Finance Manager Bency Chua.
Director of Human Resources Katherine Johnson joined the meeting to present a review of
the Faculty Salary Survey.
The following representatives were present as Guests of the Committee:
KPMG (8:30 am to 9:30 am)
Audit Services: Jeya Poh Wan Suppiah and Koh Wee Kwang
Hay Group Singapore
Salary Survey: Chee Yee Hwee
Approval of FC Minutes
Acceptance of May 9 Minutes of Meeting as presented.
Review 2011-2012 Finance Committee Topics
Devin presented potential Finance Committee objectives for discussion by the committee
which include:
Possible Tuition Increase Ceiling
Compensation Adjustment based on Hay Study
Mandarin Program Funding
Facilities Shortfall
Additional Tuition Charges – Interim Semester and Laptops (postponed)
Changing customer profile (corporate vs private payer)
The Budget Communication will be discussed at the next Finance Committee Meeting along
with long term financial projections.
Financial Reporting
Final 2010-2011 Financial Statements (unaudited)
The school experienced a favorable surplus due both to strong enrollment-related revenues
as well as subscriptions to the GPP. Additionally, expenses were below budget in the
Operating Fund though unfavorable in the Facilities Fund due to timing differences with the
June 30 th year-end in the midst of summer repair works.
Discussion of the upcoming Oct 24 AGM. A draft presentation will be provided at the
October meeting.
Audit Report
Review draft audited financial statements for year ending 30 June 2011
The committee requested minor changes in the report, reviewed the school’s capitalization
criteria, and the new reporting requirements which will report (unrealized) changes in the
market value of investments in the income statement rather than the balance sheet as has
been the practice.
Presentation of June 30, 2011 Audit Report and Salient Features. KPMG representatives
presented the results and committee members discussed the content of the financial
statements as well as the management letter. The committee was satisfied with the school’s
response. Additional discussion was held regarding the school’s supplier relationships.

Action Item: Finance Committee recommends the Board review and approve the following
resolutions:
THAT the statutory financial statements as of June 30, 2011 and for the financial year
end on that date together with the report of the Governors be and hereby approved
for submission at the forthcoming Annual General Meeting of the Company.
THAT any two Governors be and are hereby authorized to sign the said Governors’
report for and on behalf of the board on September 19, 2011.
THAT the statement by the Governors on the statutory financial statements be and is
hereby approved, and any two Governors be and are hereby authorized to sign the
said statement for and on behalf of the board on September 19, 2011.
THAT the Annual General Meeting of the Company be convened on Oct 24, 2011,
and the secretary be and is hereby authorized to issue notice in respect thereof.
Financials 2011-2012
Information Item: Initial comments on Financial Projections for 2011-2012
The school has experienced an increase in the re-enrollment rate for the August opening
reducing the number of openings for new students. This, combined with an increase new
student budget (to 930); will result in an unfavorable variance in registration fees. However,
at this point the Administration is not projecting an unfavorable variance overall for the year.
Information Item: Enrollment Report Aug 30, 2011
Additional enrolment data will be provided with October materials.
Report on Donations (Sources & Allocations of Advancement Fund Revenues 2010-2011)
Information Item: Receipts in 2010-2011 for use in 2011-2012. This action is for governance
purposes as it represents Board approval for receipt of donations and authorizes the
administration to expend donated funds for the purposes intended.
Action Item: Finance Committee recommends the Board review and approve the following
resolutions:
• That the Board of Governors agrees to accept donations totaling $337,990 received
during fiscal 2010-2011 for use during fiscal year 2011-2012 as designated by the PTA
of the Singapore American School.
• That the Board of Governors agrees to accept donations totaling $800,000 received
during fiscal year 2010-2011 for use during fiscal year 2011-2012 as designated by the
SAS Foundation including an amount of $336,600 to be transferred to the SAS
Endowment Fund.
Report on Unspent Donations for 2010-2011
Information Item: Unspent Foundation Funds Donated to SAS in 2009-2010 for Use in 2010-
2011. The SAS Foundation approved the transfer of unexpended donations in the 2010-2011
year to the Endowment Fund.
Action Item: Finance Committee recommends the Board review and approve the following
resolution:
• That the Board of Governors agrees to transfer $56,711 in funds donated to SAS in
2009-2010 for use in 2010-2011 but which remain unspent to the SAS Endowment Fund.
Report on Remainder Funds in Student Activities Fund (Funds 3)
Information Item: Report on Remainder Funds in Student Activities (Fund 3) for 2010-2011.
These funds arise from an annual housekeeping exercise in removing inactive accounts as
well as unredeemed funds. Organizations which later reactivate and individuals who
request refunds are appropriately compensated.
Action Item: Finance Committee recommends the Board review and approve the following
resolution:
• That the Board of Governors agrees to transfer $64,084 in inactive and remainder
accounts in the Student Activities Fund to the SAS Endowment Fund.

Request for Allocation of Surplus to Endowment
Information Item: Request for Allocation of Surplus to Endowment
Action Item: Finance Committee recommends the Board review and approve the following
resolution:
• That the Board of Governors agrees to transfer $47,749 from the accumulated
operating fund surplus to the Endowment Fund.
Budget Development 2012-2013
Information Item: Timeline for 2012-2013 Budget
Review salary survey – Katherine Johnson
The Hay Group was present to discuss their comparative analysis within the group of 16
schools in Asia used to compare faculty pay. Dr. Mutsch commented on the importance of
a competitive package in attracting and retaining qualified faculty - the most important
factor in providing a quality educational experience. The committee evaluated the school’s
position vis-à-vis the established 70 th percentile benchmark but declined to reach a
conclusion before viewing the data regarding benefits.
The Hay Group will present its review of benefits within the same group of 16 schools at the
October meeting.
The committee expressed its satisfaction with the detailed and comprehensive information
presented to-date and that the Administration and the Board have made progress in
ensuring that the school’s faculty compensation remains competitive.
The administration will provide a set of enrollment data at the October meeting.
GST Audit – Information Item
The Singapore Government, through IRAS, is offering an “Assisted Compliance Assurance
Program (ACAP)” to encourage companies to audit their compliance with GST regulation.
The Singapore Government will support 50% of the cost of the exercise. The school will
participate in this program to ensure GST compliance and to develop improved
documentation regarding its practices.
Request for Authorization to Open PayPal Account
The school has received an attractive offer from PayPal for processing Mastercard, Visa,
American Express as well as PayPal payments. In order to establish this relationship the Board
must approve an account opening. The committee recommended the school explore
PayPal’s dispute resolution process.
Action Item: Finance Committee recommends the Board review and approve the following
resolution:
• Authorize the establishment of a PayPal account in the name of the Singapore
American School to receive payments and transfer the resulting funds to the school’s
operating account with DBS with signature authority as established periodically by the
Board.
Guaranteed Placement Program
Report on 2011-2012 Program Results
A long discussion relating to the use of the GPP funds ensued. The committee discussed
possible long-term limits on GPP subscriptions and various alternatives for allocation of GPP
proceeds in the future.
Action Item: Finance Committee recommends the Board review and approve the following
resolution:
That the Board of Governors agrees to transfer $800,000, (an addition to the $3.55M
approved for transfer in May 2011) in proceeds from the Guaranteed Placement
Program during 2010-2011 to the Endowment Fund.
Action Item: Finance Committee recommends the Board review and approve the following
resolution:
That the Board of Governors agrees to transfer $800,000, in proceeds from the
Guaranteed Placement Program during 2011-2012 (to-date) to the Endowment Fund.

Information Item: Survey of Guaranteed Placement Programs in Singapore
Proposal for 2012-2013 Program
The administration proposed sustaining the current pricing scheme for GPP subscriptions.
However, the Committee voted to increase rates by 10% increase in each category.
Action Item: Finance Committee recommends the Board review and approve the following
resolution:
That the Board of Governors agrees to renew the GPP program for 2012-2013 with an
allocation of 25 places and pricing as follows:
Options
Amount
Incl GST
Corporate Seat-Original Purchase ($330,000) $353,100
Corporate Seat – Assignment Change Fee ($27,500) $29,425
Individual Seat – American Citizen or US Permanent Resident ($220,000) $235,400
Individual Seat – Non-American Dependent child American Corp ($275,000) $294,250
Individual Seat – All Other Non-American Children($330,000) $353,100
Investment Reports – Q2 2011
Investment Advisory Committee Update
The Investment Advisory Committee believes the adopted SAA is operating as it was
intended. However, in view of the upcoming additional funds and the recent highly volatile
market conditions, the Committee has asked Mercer to revisit the modeling that resulted in
the SAA. The Committee will meet again on Oct 7, 2011 to review Mercer’s work before the
bulk of new funds from 2010-2011 surpluses and allocations included in the 2011-2012 are
invested.
Information Item: May 12, 2011 Minutes of Meeting (Approved)
Information Item: August 19, 2011 Minutes of Meeting (Draft)
Other Business
No other Business
Adjournment
The Meeting was adjourned at 12:07 pm