The following fiscal terms used throughout the Board of Trustees Policy Manual are defined here for clarity.

Capital Allocation: A reserve in the Operating Budget for funding the Capital Fund.

Capital Assessment: Monies charged to parents each school year for the first two years of each student's attendance at FIS for Grades Pre-Primary and above, and allocated entirely to the Capital Fund.

Capital Budget: The annual financial plan, identifying Capital Expenditures by item or by project, that are expected to be committed during the financial year and are funded via the Capital Fund.

Capital Expenditures: Expenditures on facilities, furniture and equipment which meet the following criteria:

• Exceed the criteria for low-value assets under German law

• Have a useful life of two or more years

• Extend the useful life of the facility, furniture or equipment, and/or increases the value of the facility, furniture or equipment

Capital Fund: Monies specifically identified and set aside for any of the following purposes:

• Construction or reconstruction of school facilities

• Acquisition of real estate for school facilities

• Acquisition of furniture and/or equipment

• Retirement of debt including interest on mortgage incurred for above items

Down Payment: Monies charged to parents as a down payment towards tuition which is credited towards the total bill and is not refundable.

Fiscal Year: The calendar period from 1 July to 30 June of the following year.

Late Fee: Interest charged to parents for fees not received by FIS within 30 days of the due date of such fees.

Operating Budget: The annual financial plan of detailed revenues and expenses for the operation of FIS, exclusive of capital expenditures, mortgage costs and principal repayment and inclusive of an equivalent for depreciation.

Operating Expenditures: Expenditures that cover the cost of operating FIS, including an equivalent to depreciation (Capital Allocation) and are included in the Operating Budget.

Operating Fund: The accumulation of operating surpluses and deficits over the years.

Re-enrollment Fee: Monies charged to assure a student’s place for the subsequent school year.

Registration Fee: Monies charged to parents at the time of application to cover processing costs of the school.

Transportation Budget: The annual financial plan of detailed revenues and expenses for providing transportation and late transportation for students between FIS and their bus stop. The Transportation Budget is incorporated in the Operating Budget.

Transportation Fee: Monies charged each school year for daily transportation of the student between the student’s bus stop and FIS.

Tuition Fee: Monies charged to parents each school year to cover operating costs of FIS.