Part 1 - Financial Evaluation

Rating is not required

Evaluator Response

The school works with a private external auditing company for annual audit of the financial reports. The financial year is set to be aligned with the academic year and starts on September 1st. As the school started to grow, the head of the board observed the need to switch to an established audit company and started to work with Grant Thornton after the end of the 2018 financial year.

The school leadership team and members of the board analyze the audit reports and strive to take actions although not within an official calendar. The head of finance works closely with the head of the board regarding all matters financial, and they have been able to build a mutual understanding of trust as she has employed by him for a very long period.

The evaluating team analyzed the 2018-2019 audit reports. However, the 2019-2020 audit report was not produced at the time of the visit. The school was very cooperative in sharing the consolidated balance sheet, statement of cash flow, and income statements for the academic years 2018-2019, 2019-2020, 2020-2021.

The visiting team had to clarify some areas of the income statement in the meeting with the head of finance. Expenses entered as positive number in the statement were clarified to be negative numbers in reality. Therefore was suggested that expenses be written in brackets in order to comply with international financial reporting practices.

The unofficial audit draft demonstrates that there is a decrease in the current liabilities. As of 31 August 2020 the school has decreased its liabilities from to 794,712 to 579,743BD compared to the previous year. However, despite the increasing profits for the 2019-2020 academic year, school equity is still negative because of withdrawn cash in the amount of 584,161 BD. This cash is used for the payment of an insurance premium which is registered under the name of the head of the board and held for the beneficial interest of the school.

As the school is preparing to celebrate 25 years, the evaluating team believes that the head of finance and head of the board will work collaboratively with respect to the official audit report of 2019-2020 academic year.

Commendations None at this time.

Recommendations Financial Information: Audit - The head of finance submit the official audit report for the year 2019-2020 to CIS before February 1st, 2022.