TES Annual Report_SY2022/3

FINANCIAL REVIEW The Taipei European School Foundation (TES) is a not-for-profit foundation established in 1994 in accordance with Taiwanese laws and regulations to provide the children of foreign nationals residing in Taiwan with opportunities to receive an accredited international education. TES has been operating with a stable income and expenses, and aims to continue a balanced financial position. In 2021-22, 94% of income was generated from school tuition fees and the remaining from government subsidies and other activities. Personnel staffing costs accounted for 74% of total expenses, followed by depreciation at 12% and facility operations at 8%.

The stable financial situation over the past years has allowed for the accumulated fund reserves to contribute to the school’s future strategic developments, including the Middle School Project at the EPC and the redevelopment of the ESC. The school is committed to continually managing the development fund reserves according to the school’s financial policies in order to ensure the sustainability of the long-term strategic development plan. Financial Audits The Foundation appointed KPMG to be the Financial Reports Audit Accountant for the school in 2021-22. The 2021-22 TES financial report was audited and concluded by KPMG with a clean outcome. Opinion Extract from KPMG’s Report (10th January 2023) “We have audited the financial statements of Taipei European School Foundation (the “School”), which comprise the balance sheets as of July 31, 2022 and 2021, and the statements of activities and cash flows for the school years then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the School as of July 31, 2022 and 2021, as in its financial performance and its cash flows for the school years then ended in accordance with the Foundations Act, the Regulations for the Establishment and Management of Private Elementary Schools, Junior and Senior High Schools, and Affiliated Preschools for International Residents promulgated by the Ministry of Education, Enterprise Accounting Standards and their related Interpretations announced by the Accounting Research and Development Foundation of the Republic of China.”

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