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FINANCE (Section 300)

Revenue and Expenditure Contracts

300 Petty Cash

Petty Cash funds are to be maintained on an “imprest” basis for the payment of minor expenses or services rendered. It is to be held as cash on hand or savings accounts in the Current Fund.

Petty Cash fund balance and disbursements limits are determined by the Schedule of Cash Limits. An authorized Payment Request form or exchange receipt documents each withdrawal from Petty Cash. When the cash balance falls below the minimum fund balance, a transfer from the savings account is made so that the fund can be brought up to the maximum balance. The total of Receipts, Payment Requests, and cash on hand in the fund should always equal the maximum fund balance. No purchases may be split into smaller purchases for the purpose of by-passing monetary limits.

Occasionally, it may be necessary to obtain an advance from the Petty Cash Fund for the purpose of making a purchase or paying for a service. All cash advances must be signed by an administrator and cleared within one month. Cash advances greater than NT$10,000 or exceeding one month duration must be charged to the loan account (IPS) using a Payment Request Form. The Petty Cash Fund and advances are for school business or related benefits (i.e. medical) only.

SAC 9/12
Reference – Policy 4410 Accounting Standards

302 Accounting Standards

Accounting procedures must be used that are consistent with the standards set forth by the National Association of Independent Schools in their manual, Business Management for Independent Schools, and that are in accordance with applicable U.S. and R.O.C. regulations.

SAC 93
Reference – Policy 4410 Accounting Standards

304 Exchange Rate

The school shall maintain its books in New Taiwan Dollars. Transactions in U.S. Dollars shall be translated into NT$ at a fixed exchange rate. The buy and sell rate should not vary more than NT$1, and should encompass the Bank of Taiwan buy and sell rate.

SAC 93
Reference – Policy 4410 Accounting Standards

306 Cash Management

All school revenue will be received by the school cashier and credited to Morrison Academy General Ledger. Receipts above petty cash limits will be deposited in a Morrison Academy bank account or postal account. All collections will be completely supported by official receipts.

Revenue from school authorized fundraising and resale accounts may be pooled for up to 30 days or accumulate up to NT$10,000 before being receipted by the school cashier. Student organizations will either deposit funds in a school account or maintain a Taiwan bank account administered by the sponsor.

Donations for Capital Campaign, Annual Fund and other fundraising for Morrison Academy should be receipted within 3 business days. The donors name and/or non-parent donors contact information, amount donated and purpose of the gift should be listed on the receipt.

All expenditures are done in cash, wire transfer, or bank draft. An adequate amount of cash will be maintained to satisfy operations of the school in accordance with the Schedule of Cash Limits.

For approved overseas on-line orders or orders requiring advance payment only, the trackers or other authorized personnel could pay with a school credit card issued under their names. The card holder should be the only one to use the card. The card may not be used for personal business. The invoice and payment record should be forwarded to the System Accountant before the 10th of following month.

Adequate funds for current operating expenditures will be maintained in both United States and New Taiwan dollars. Funds in excess of current operating needs will be invested according to Board policy in low risk instruments.

SAC 9/12
Reference - Policy 4297 Cash Management
Policy 4253 Fund Raising for Morrison Academy

308 Expenditure Authorization

The Director of Finance will designate which administrator will be authorized for each budget line item.

All expenditures must be authorized by the appropriate administrator according to the Expenditure Authorization Schedule (see Appendix). It will be the responsibility of the administrator to insure that purchases are aligned with the intent of the account, that adequate documentation is maintained, and that purchases fall within the approved budget. An administrator may delegate authorization for expenditures of less than NT$20,000. Expenditures exceeding NT$20,000 must have written or electronic authorization by the appropriate administrator prior to payment. Expenditures exceeding NT2,000,000 must have written or electronic authorization by the administrator and Director of Finance before payment.

SAC 9/12
Reference - Policy 4340 Authorization of Expenses

310 Line-item Fidelity

Expenses must be in alignment with the basic purpose of the line-item. Revenue may not be placed in expense line items (artificially reducing expenses), nor may expenses be made from revenue line items artificially reducing them.

SAC 93
Reference – Policy 4410 Accounting Standards

312 Accounts Payable

Requests for payment must be made in the Payment Request system. Appropriate supporting documentation (in accordance with Procedure 316) must be presented to the cashier before payment is disbursed.

The cashier will be responsible for the distribution of checks to vendors. All vendors who pick up their checks from the cashier must sign or chop the voucher. No distribution of funds shall be made without verification that the order received reconciles to the invoice. Bills are to be paid no later than thirty days after a shipment is received. When requesting payment to individuals who are not Morrison employees, the payee's ARC (Alien Registration Card) or ROC number is required before the payment is made.

SAC 4/04
Reference – Policy 4410 Accounting Standards

314 Authorization of Contingency Funds

In the event of an unexpected need where no budgeted funds are available, the administrator may request that contingency funds be used. Requests for such funds must be made to the Superintendent or the Director of Finance.

The Superintendent, in consultation with the Director of Finance, may authorize contingency funds up to NT$100,000. Requests for funds in excess of NT$100,000 must have the approval of the System Administrative Council. If the contingency funds of the budget are depleted and additional contingency funds are needed, a revised budget must be approved by the Board of Trustees.

GBM 6/02
Reference - Procedure 368 Budget Preparation

316 Expenditures

Morrison employees may make school-authorized purchases on behalf of the school, provided they have the following before making the purchase:

  • Appropriate authorizer's approval, preferably in writing (i.e. email) and the appropriate account identified
  • Supporting document (ensure collection of the proper receipt, invoice or other detailed description)
  • Payment instructions (payee's name & choice of cash, bank transfer, or credit card payment)

Purchases within Taiwan
Expenditures for goods and services from within Taiwan must be accompanied by an official government receipt with the school’s tax ID number on it. When an official government receipt (“fa-piao”) cannot be obtained for a minor expense, a hand-written receipt (“shou-ju”) which includes the date, item, amount, and an administrator's initials, may be used. Contractors who cannot provide official government receipts are subject to Taiwan Income Tax withholding. The tickets/boarding passes for transportation expenses (plane, HSR, taxi) serve as official receipts for those expenses.

Purchases from overseas
School supplies, subscriptions and services may be purchased from outside Taiwan if no local equivalent is available. All purchases should be documented with the receipts provided. Shipping charges and customs duties should be taken into consideration and borne by the department making the order.

Payment and Reimbursement Methods
Payment transfers
For vendors who issue an invoice for goods purchases or services rendered, bank transfer or credit card payment methods may be used. The employee should work with their campus cashier on making a bank transfer. If credit card is the preferred payment method and the employee making the purchase does not hold a school credit card, they should work with their campus cashier on completing the payment.

Cash reimbursements
A purchaser may use personal cash or their CTBC debit card to purchase and be reimbursed. They may be reimbursed in NTD cash by their campus cashier or ask to have the reimbursement wired to their Taiwan bank account. An employee may also opt to receive a cash advance prior to making a school-authorized purchase and settle any difference over/under the actual amount after the purchase is made.

Credit card usage
If credit card is the preferred payment method for a purchase, a school credit card should be used for regularly scheduled school items. A personal credit card may be used for school-authorized travel expenses and incidental, irregular, expenses. (examples include things such as gasoline for a school vehicle, incidental expenses on a field trip or sports trip, or misc. school supplies).

Because of custom fee rebates, any purchase of an item shipped to Taiwan from overseas using credit card payment should be made with a school credit card. When a purchase is in US dollars and over USD500, a purchaser should arrange to use a school-issued USD-denominated credit card held by their campus cashier. A TWD-denominated card (issued by Cooperative Bank) may be used for US dollar purchases under USD500. If an individual uses their own credit card for Amazon purchases, the import fees deposit amount will not be reimbursed.

An employee who makes frequent purchases for the school may request to receive a credit card issued in their name, for school purchases. They should do so by contacting the System Accountant.

SAC 8/23
Reference –Procedure 308 Expenditure Authorization

318 Bids

Bids should be sought from responsible bidders who are capable of offering a fair price commensurate with the desired quality, delivery, and service. Misrepresentation on the part of a vendor shall be just cause for disqualification on future bids.

Written quotes from at least two responsible bidders are required for all irregular local purchases over NT$100,000. It is the responsibility of the employee placing the order to present clear and complete specifications so that the written bids may be an accurate tool for selecting a vendor. The General Manager may assist you in securing the needed bids.

Just cause must be shown if a decision is made not to contract with the lowest bidder.

Biannual price checks should be conducted to evaluate the pricing of regular services and purchases.

SAC 2/19
Reference - None

320 Conflict of Interest

In order to demonstrate that this organization is living above reproach employees will not accept gifts or gratuities valued (individually or cumulatively for the whole family) at more than NT$5,000 (and up to $10,000 per year) from any person, organization, or business associated with Morrison Academy. If the personal gift is valued (individually or cumulatively) more than NT$5,000 then the employee will inform their administrator and the administrator will determine how the gift is used. Employees may accept invitations to eat a meal with the host. Absolutely no gifts may be accepted for anything that could be interpreted as a bribe for favorable treatment or for services yet to be rendered, such as from those seeking admission to the school.

All employees shall avoid possible conflicts of interest with vendors. Conflicts of interest include, but are not limited to a material financial interest in a vendor, borrowing or lending to a vendor, revealing confidential information to a vendor, and accepting employment with a vendor.

Teachers may not receive any form of compensation for tutoring their own students or their sibling.

No employee, while fulfilling the terms of their contract, will engage in non-Morrison activities to the extent that such involvement precludes fulfilling the responsibilities of their Morrison Academy contract.

Publishing of materials prepared at school direction or during school compensated time by any staff member shall become the property of Morrison Academy, unless there is a written agreement concerning royalties.

SAC 3/18

325 Receivable Accounts

Receivable Accounts are maintained internally within Morrison’s Current Fund. A Receivable Account is established to record financial activity (debits and credits) associated with a particular school activity or function. An administrator may submit a request to set up a new account to the Director of Finance for approval. The account balance will be listed on the administrator’s monthly finance report. All Receivable Account assets and liabilities are property of Morrison Academy. Prices for items sold or resold cannot be advertised or published outside the Morrison community, in order to comply with sales tax regulations.

Types of Receivable Accounts include the following:

Resale Inventory Accounts are for the purpose of maintaining an inventory of products or supplies for resale to students or staff and are limited to school spirit merchandise, PE uniforms, and student store food and supplies. Sales will be posted as credits and purchases as a debit. Budget funds shall not be used as seed money for resale accounts.

An annual inventory will be conducted annually for each account and the account authorizer must submit a complete inventory list to the System Accountant no later than one week after the last day of school. The annual inventory should reconcile or be roughly equivalent to the account balance. Surpluses may be transferred to other accounts by the campus administrator. If inventory levels are less than the account balance, the administrator shall develop a plan to recoup the loss within 12 months. In such cases, a mid-year audit is required.

Resale prices shall be set sufficiently above cost to cover losses due to obsolescence, damage, theft, and any other operating expense (i.e. student labor for student store, etc.). Resale accounts will not be charged for utilities, space rent, or office services.

Student Activity Accounts may be maintained for class accounts, school-sponsored student organizations or fundraising projects. Student activity accounts include, but are not limited to, travel associated with high school sports or experiential learning, class fundraising, and Student Council. A report of transactions in a student activity account is available upon request by the appropriate leader. Class advisers assist student treasurers in maintaining a separate accounting of all transactions that can be reconciled with the monthly printout.

Normally, student activity funds are self-supporting. Transfers of school funds to a student activity fund are limited to 1) The budgeted annual subsidies of high school organizations from the campus Student Activity account, and 2) Chaperone travel and housing, in accordance with Procedure 470.

School-authorized Services or Events may establish a control account for managing collection of fees and payment of expenses for a particular auxiliary service or event. Service accounts include, but are not limited to, busing services, HS guidance counseling (testing) services, and community events in which fees are collected. Services must be priced such that they cover all associated expenses on an annual basis. The Director of Finance will determine what portion of any surplus balance at the end of the fiscal year will be carried over to the following year or transferred into the school’s misc revenue account.

SAC 11/20
Procedure 392 Fundraising for Other Organizations
Procedure 395 Campus Fundraising

326 Purchases from Next Year’s Budget

Administrators may authorize expenditures from accounts payable for the following academic year. These expenditures may not exceed 80% of the current year's expense budget for instructional supplies, textbooks, food, equipment, I.T. equipment, and capital.

SAC 4/16
Reference – Policy 4340

328 Reimbursement For School Travel

Morrison Academy employees, Board members, or others representing the school on official business, shall be reimbursed for administrator approved travel expenses within the following limits. Because this expense is a Morrison business expense, each request for reimbursement should be supported by appropriate documentation to include where applicable: travel itinerary, paid receipts, boarding passes, and transportation passenger tickets. If proper documents are not submitted, the employee will be responsible for expenses incurred.

  • The reasonable cost of meals and housing accommodations. Meals not to exceed (Breakfast - NT$200, Lunch - NT$300; Dinner - NT$500).
  • The cost of public transportation of economy rates including bus, taxi, air, high speed rail (HSR), and train. HSR travel to or from Taichung may only be used by parties of up to three people. Travel between Taipei and Kaohsiung may be accomplished utilizing HSR.
  • If an employee travels for school-authorized business and school-managed vehicles are all reserved for other school-related business at the same time, they may use their personal vehicle for the travel and be reimbursed NT$8.0 per km. Their campus System Travel account should be used for this expense.

SAC 4/23
Reference - Policy 1160 Board Remuneration and Reimbursement

329 Corporate Contracts

The Board may authorize a specific number of contractual financial agreements with corporations for the purposes of reserving placements in Morrison for the children of corporate employees and providing capital for campus construction projects. The two authorized types of contracts are Transferable Corporate Debentures (TCDs) and Annual Corporate Contracts (ACCs).

The Director of Finance oversees the status of each TCD/ACC. Corporations, if first time TCD/ACC applicants, are required to submit corporate documents specified by the Director of Finance.

A single TCD/ACC entitles the corporation to nominate one child of a parent employed by the corporation for priority placement at the Morrison Academy campus designated on the contract, provided the child satisfies the school’s entry qualifications. A TCD/ACC does not guarantee placement if the candidate student does not meet the admissions requirements and agree to adhere to all conduct standards as established by the school. A TCD/ACC student applicant who meets all the admissions requirements receives the highest admissions priority (after the children of missionaries), bypassing the school’s usual waiting list and class size limits.

A TCD is a non-interest bearing instrument and is not secured by any of the property, assets, or undertakings of the school. The Board of Trustees may authorize the sale or reacquisition of TCDs for removal from circulation at any time. The Board determines the specific number and value of each TCD. The Board reserves the right to reacquire a corporation’s TCD (or rescind an ACC) if it determines that a corporation is engaging in business activities that conflict with the core values of the school. A TCD may be transferred to another corporation upon authorization by the Director of Finance and payment of a transaction fee as a percentage of the TCD’s face value. The Board may decide when to retire a TCD from circulation.

An ACC is an annual fee-based contract that is automatically renewed each year as long as the nominated student is enrolled. A minimum 30% premium is applied to all tuition and fees.

Qualifying Corporations
The Director of Finance will disqualify any corporation that is in opposition to Morrison Academy’s stated Core Values. Any foreign headquartered corporations with a presence or with employees located in Taiwan may apply, including limited liability corporations and other such entities with similar characteristics and recognized in the same category by countries that don’t use the legal term “corporation.” Any legally established Taiwan-based corporations; regardless of their industry focus may apply for a debenture. The Board reserves the right to reacquire a corporation’s TCD, or rescind an ACC, if it determines that a corporation is engaging in business activities that conflict with the core values of the school.

TCD Application Process
To apply for any debenture purchase, corporations should submit a completed application form to the Director of Finance. First time debenture applicants are required to also submit verified documents of the corporation’s legal registration/certification. Upon approval of the application and appropriate contract finalization for a TCD, the Director of Finance will issue a debenture certificate to the corporation.

Student Admission Process
A single TCD reserves a position for one child of a parent employed by the corporation holding the debenture. A TCD holder is entitled to nominate one child of their employee for a priority placement provided the child satisfies the school’s entry qualifications. However, once a child has been nominated to a TCD and for so long as the child nominated remains a pupil of Morrison Academy, the TCD will be considered active and the holder shall not be entitled under this TCD to nominate any other child. Any additional child nominated must be under an alternate TCD owned by the corporation. TCD status is determined by nomination and enrollment of a student. Once a student is enrolled, the TCD becomes “active” and will remain active as long as the student remains enrolled at Morrison Academy. If the debenture is not being utilized, it will remain valid but will be considered “inactive” until it is used to nominate a student of an employee of the TCD holder.

TCD and ACC admissions candidates receive top priority in application (after the children of missionaries) and, like the children of missionaries, may exceed the maximum class size limits specified in Policy 5205. In order to receive this top priority in the admissions process, student applications supported with a debenture should be received at least 30 days before the start of a semester. Applications supported with a debenture which are received outside the 30 day deadline, will receive top priority but may be placed in the wait pool and, pending qualification, offered a place.

Transfer Process
TCDs may be transferred to another corporation with the payment of the required 5% fee, but any transfer must be authorized by the Director of Finance. Morrison Academy may assist a corporation in finding a qualified corporate buyer, but if no buyer is available, then the TCD holder will continue to hold the TCD until such time as a buyer is available. If Morrison elects to retire the TCD the full purchase price, less the required 5% fee, will be paid to the holding corporation.

ACCs are not transferable to another corporation but may support additional students as company employees depart or arrive during that academic year. Refer to the specific ACC holder’s corporate contract for agreement details.

Transfer to another Campus
After a TCD holder has been enrolled for at least one year, the Superintendent may authorize transfer to another campus (in accordance with the Student Transfers procedure #242) and make an exception to Class size Limits (in accordance with policy 5205). An ACC is not transferable to another campus.

SAC 4/16
References: Policy #5205 Enrollment Limitations
Policy #5210 Admission Priorities
Policy #4255 Corporate Contracts
Procedure #240 Student Admissions
Procedure #241 Student Transfers Within the Morrison System

School Fees

330 Payment of School Fees

An annual school registration fee must accompany each school registration form. The registration fee is non-refundable, normally due by the first Friday in April for returning students and at the time of registration for new students.

A one-time entrance fee is charged to all new students enrolling either for the entire or part of the school year. The entrance fee is non-refundable and due upon registration.

If the Principal feels that circumstances warrant a refund of the registration fee or entrance fee, the Principal may recommend to the Director of Finance that a refund be given. The Director of Finance will have the authority to authorize a refund.

Fees are quoted in and payable in N.T. Dollars.

If it is necessary to pay fees in U.S. Dollars, the rate of exchange used to calculate these fees will be the current school exchange rate on the date payment is received.

Tuition, building and boarding fees are payable in advance for each semester. Mission organizations which have mission payroll receivable greater than the tuition, building, and boarding fees due may wait until mid-semester to pay.

As a service, statements will be mailed to the address stipulated by parents upon their request and as agreed to by the Director of Finance. Accounts are due and payable whether a “statement” has been received or not.

TCM 5/15
Reference – Policy 4320 Tuition and Fees

332 Fees and Charges

A fee is charged for music lessons and classes that are not a part of the regularly scheduled music classes that occur during the school day, e.g. private and small group instrument/voice lessons during the day or after school, small group music lessons after school, etc. Music lesson fees must be paid by the due date prior to students attending lessons and classes. Fees are not refundable after lessons or classes have been scheduled.

A user fee is charged to students who use school instruments or facilities for practice.

A transportation fee is charged to those students who take advantage of school-provided transportation services.

A milk fee or hot lunch fee is charged to students who sign-up for these optional programs. Fees are not refundable two weeks after the start of school. Fees are not refundable for absence due to temporary illness or school closure due to a natural disaster. In the event of online learning extending 10 or more consecutive days, a partial reimbursement may be determined by the Director of Finance for optional services, after any associated expenses are paid. The refund would be given in the form of a discount for the same service for the following semester. Students leaving Morrison may receive the refund in cash.

ELL and LN Instruction are not covered by regular tuition. ELL fees are payable for those students who receive services described in procedure 283. LN fees are payable for those students receiving the services described in procedure 283. Students admitted who do not meet regular LN admittance criteria will be required to bear the full financial costs of any additional instructional services required to meet their educational plan.

The parent will be responsible for reimbursement of costs of materials used for projects in industrial arts, home economics, art, photography, etc., as well as the cost of costumes and uniforms which become the property of the student.

Lock and breakage deposits may be required. Information concerning these will be provided by the department or class requiring them.

The dormitory program fees include both the facility cost and dorm program cost. Food cost is billed separately.

Other fees may be levied for additional voluntary services offered on a given campus.

SAC 4/20
Reference - Policy 4320 Tuition and Fees
Policy 5351 Continuing Enrollment

336 Penalties for Delinquent Payments

School bills not paid by the due date on the statements are subject to a late fee of NT$1000 and interest (1% per month) on the delinquent balance due from the due date to the payment date.

Students are not allowed to attend class or reside in the dorm if the tuition and fees are not paid by the due day unless a Deferred Payment Plan has been approved and paid on time. Students with outstanding balance from previous semesters are not allowed to attend class or reside in the dorm until their previous year’s balance is completely paid. Transcripts will be held on any student who has an outstanding balance.

SAC 8/12
Reference - Policy 4315 Delinquent Bills

337 Deferred Payment Plans

The Deferred Payment Plan for Tuition, Building and Boarding fees enables four equal tuition payments in lieu of full payment by the normal due date. There is an NT$1,000 fee for using the plan and arrangement is made with the Cashier. Failure to make payment by the scheduled due dates (below) will result in a monthly interest charge of 1.0% on any overdue balance. Delayed payment may also result in discontinued enrollment.

Fall Semester:
25% of the school bill by the due date on the statement
25% by July 1
25% by Aug 1
25% by Sept 1

Spring Semester:
25% of the school bill by the due date on the statement
25% by January 1
25% by February 1
25% by March 1

SAC 8/17

340 Missionary Discount and Fee Reductions

For those students whose parents are classified as missionary or Christian worker, the missionary or Christian worker discount will be applied to registration, entrance, tuition, building, dormitory program, and dormitory facility fee. The percentage discount on ELL and LN fees will be determined by the Board of Trustees through the annual budgeting process. Fall tuition may be further reduced by NT$5,000 if the registration fee is paid during the early registration period.

SAC 12/17
References - Policy 1613, 1614, 4281, 4282

341 Family Discount for MKs

In order to fulfill the stated purpose of the school in helping missionaries educate their children, families who qualify for the Missionary or Christian Worker discount may receive a discount of NT$15,000 per year applied to the tuition of a second child and any subsequent children who are concurrently enrolled for a full school year. The discount is applied to the Spring semester tuition for qualifying students. Contracted employees at 0.5 FTE or greater may also receive the family discount for second and subsequent children.

SAC 2/22
References - Policies: 4281 Taiwan Missionary Discount
4282 Christian Worker Discount
4284 Family Discounts

342 Tuition and Fee Schedule

All registration, entrance, tuition, building, and boarding fees will be determined by the Board of Trustees as part of the annual budget. Building fee is part of the tuition fee which is designated by the Board of Trustees for building and facility replacement; therefore it is not tax deductible. The Board of Trustees may adjust registration, entrance, tuition, building, and boarding fees for any given semester if the need arises. The Director of Finance will publish an annual registration, entrance, tuition, building, and boarding fee schedule. (See Appendix)

SAC 11/06

344 Partial Semester Attendance - Billing

For students withdrawing from the school refunds on tuition, building and boarding fees will be calculated according to the following chart.

Prior to the end of the fifth week before the semester90%
Prior to the end of the first week of the semester75%
Prior to the end of the second week of the semester50%
Prior to the end of the third week of the semester25%
Prior to the end of the fourth week of the semester10%
After the fourth week of the semesterno refund

The Director of Finance may grant a partial or prorated refund for all tuition, building, boarding, ELL and LN fees when extenuating circumstances exist. This is done by the appropriate administrator submitting a written request stating the circumstances.

Tuition, building and Boarding Fees for students enrolling after the fourth week of the semester will be prorated. Students enrolling the fourth week of the semester or prior to that time will pay full tuition, building, and other fees.

SAC 5/06
Reference - Policy 4315 Delinquent Bills
Reference - Procedure 330 Payment of School Fees

Fund Accounting System

346 Current Fund

Unrestricted Current Fund
The unrestricted portion of the Current Fund includes any economic resource earned in a fiscal year for the purpose of carrying out the objectives of the school. Expenditures from this fund shall be determined by the budget. After the annual audit is completed, any net income or loss will be transferred to the Plant and Development Fund.

Restricted Current Fund
National Employee Retirement and Severance Fund
All qualified employees will be fully vested. At the end of each fiscal year a transfer will be made from the budget to cover any shortfall in this fund. Funds should be kept separately in accounting records but can be pooled for investment purposes. All expenditures from this fund will be in accordance with Procedure 656 - Retirement and Procedure 654 - Severance Pay.

Emergency Reserve
Contingency funds to be used in the event of a long-term school closure in accordance with Procedure 455 - School Closure.

SAC 9/12
Reference - Policy 4400 Fund counting
Policy 4402 Reserved Accounts

348 Plant and Development Fund

The Plant and Development Fund is a restricted fund of all fixed assets. Fixed assets include all equipment, buildings and land valued at over NT$80,000.

This fund is restricted as follows:

  1. Expenditures for land and new buildings require Board approval.
  2. Expenditures for improvements to existing buildings greater than NT$100,000 require Finance Committee approval.
  3. Expenditure for equipment gains will be approved through the budget process.

Liquid resources are held as reserves for future investment according to the designation of the account.

The building and dorm facility fees are to be deposited into the Plant and Development Fund.

SAC 9/12
Reference - Policy 4400 Fund Accounting

350 Endowment Fund

The principal of this fund in its entirety may not be used.

Endowment investment revenue must be used annually in accordance with donors' designations.

Alex Herring Instructional Grant

Alex Herring served on the Morrison Board of Trustees from 1958 to 1961. Two of his children graduated from Morrison: Gordon (1961) and Nan (1965). This endowment was initiated in 2004.

Donations to this fund will be invested in conservative mutual funds. The amount of this annual grant will be based on the annual investment revenue. Any Morrison Academy employees may apply for this instruction grant. Grants will be awarded to programs that demonstrate innovative instructional techniques and impact a large number of students. The Director of Finance, in consultation with the Director of Learning, will determine the amount and recipient(s) of the award. In the event Morrison ever ceases to exist as a school, the account balance will be transferred to Furman University in Greenville, SC to be managed in a similar fashion for the same purpose.

Kenneth G. Klefsaas Memorial Award

Kenneth G. Klefsaas served as high school principal of Morrison Academy from 1986 to 1988 and as superintendent from 1988 until his death in February of 1989. This endowed graduation award was established in his honor at that time.

This award will be presented annually to the senior boy and senior girl who have most consistently demonstrated: a commitment to Christ in daily life, involvement in campus organizations and completing tasks, encouragement to fellow students to strive to reach their potential, and integrity and good character in their individual daily lives.

John Schmitt Vandenberg Memorial Award

John Schmitt Vandenberg graduated from Morrison Academy in 1984. John was passionate about the poor and oppressed in developing world and served with Mennonite World Relief. John was tragically killed in a cycling accident on Sep 5, 1998.

This endowed graduation award was established in his honor by his close friends from the Morrison class of 1984. This award will be presented annually to a senior who submits a series of essays that best characterize the verse that John epitomized (Micah 6:8) and how they will live that verse out in their life.

SAC 5/09
Reference - Policy 4400 Fund Accounting
Procedure 249 Commencement Awards

352 Accounting of Fixed Asset

Equipment and building improvement projects valued at over NT$80,000 will be budgeted in the capital budget section of the Unrestricted Current Fund. At the end of the fiscal year actual expenditures from the capital budget are capitalized to the appropriate account in the Fixed Asset section of the Plant and Development Fund.

The list of Fixed Assets will be updated at the end of each fiscal year.

Any SAC level administrator or the Director of Information Technology Services may dispose of equipment which is considered no longer usable because of obsolescence or damage.

Assets donated to the school shall be recorded at a fair market price as of the date of the gift.

Investment securities shall be recorded at cost when they are acquired. If fixed rate securities are acquired at a discount or premium, that discount or premium shall not be amortized as income until it matures.

TCM 7/15
Reference - Policy 4400 Fund Accounting

Risk Management

354 Cost Analysis

The Director of Finance shall manage the use of insurance as a method of controlling risk. Cost analysis shall be done to determine the level at which internal reserves can be used to supplement the annual purchased insurance. If Morrison self-insures for property damage caused by natural disasters, operating contingency funds should be used first to pay for such damage. If the repairs exceed those funds and internal reserves are used, the amount is to be jointly approved by the Director of Finance and the Superintendent.

TCM 3/16
Reference - Policy 4270 Risk Management

361 Vehicle Insurance

Drivers must have a Taiwan validated driver’s license. Violation of capacity limits or driving without a valid Taiwan validated drivers license nullifies all vehicle insurance coverage.

School Vehicle
All school-owned vehicles to be used on public roads are to be covered by at least the following levels of insurance.

Liability (government required) $2,000,000 $2,000,000
Third-party liability $4,000,000 Injury/person
$8,000,000 Injury/accident
$800,000 Property
$4,000,000 Injury/person
$8,000,000 Injury/accident
$200,000 Property
Passenger $200,000 Injury/person
$2,000,000 Death/person
$16,000,000 Total/accident
$200,000 Injury/person
$2,000,000 Death/person
$16,000,000 Total/accident
Theft (vehicle & parts)10% Deductible First year only
Comprehensive$9,000 Deductible First year only

Personal Vehicles
Employees who are non-Taiwan citizens (and immediate family members) who own personal vehicles are required to carry at least the following levels of insurance coverage. Assistance may be requested from the General Manager to acquire vehicle insurance.

Liability (government required) $2,000,000 $2,000,000
Third-party liability $4,000,000 Injury/person
$8,000,000 Injury/accident
$500,000 Property
$4,000,000 Injury/person
$8,000,000 Injury/accident
$200,000 Property

SAC 9/23
Reference - Policy 4270 Risk Management

362 Student Accident Insurance

The school may purchase accident insurance for each student. Normally the school will use the same insurance company as Taiwanese public schools.

Coverage includes reimbursement for accident related medical expenses, as well as compensation for accidental death and dismemberment benefits. All claims must be submitted within 30 days of the accident. Documentation for claims should include the claim form (available in the school office), doctor's certificate, and original itemized receipts. Claims shall be submitted to the broker.

Information regarding student accident insurance will be provided in the student/parent handbooks.

The campus may purchase travel insurance for high school students on off-island school authorized trips.

SAC 2/19
Reference - Policy 4720 Risk Management

Budget Process

364 Budget Calendar

The following consensus building process shall be observed when planning the budget:

  1. The Board Finance Committee sets budget goals (by October)
  2. Director of Finance, in consultation with the Superintendent, submits a balanced budget proposal and budget worksheets to SAC. (December)
  3. Administrators return budget worksheets with justification for proposed changes. (January)
  4. SAC approves final Budget proposal (February)
  5. Budget presented to the Finance Committee and Board of Trustees (March)

SAC 2/19

368 Budget Preparation

In the budgeting process, revenue amounts will be estimated conservatively. Enrollment should be estimated using the average of the last four year's September enrollment, but factors that may influence enrollment to depart from this average should also be considered. Recommendations for tuition, fees, waivers, and discounts will also be determined.

A goal of 6:1 pupil-FTE ratio will be maintained in contracting personnel. Salaries and benefits will be reviewed annually.

Budget requests will be prepared by each administrator. It is the responsibility of the administrators and supervisors in various departments to involve staff in the formulation of the budget and to advise them of what is finally approved.

A capital expense is defined as any piece of equipment, facility, or furnishing with a value of more than NT$80,000. Maintenance projects, such as painting and masonry replacement, are not capitalized. Likewise, window and floor coverings are considered operating supplies rather than fixed assets. Capital expense requests should be aligned with the long-term plans of the school. Capital expense requests should be prioritized in order to determine where cuts may be made. Capital expense requests should include projected needs for at least two years in advance.

SAC 4/22
Reference – Policy 4400 Fund Accounting
Policy 4350 Personnel-Enrollment Authorization
Policy 4270 Risk Management

370 Mandatory Budget Revision

If actual enrollment falls below 2% of the budgeted enrollment, a revised budget will be called for by the Director of Finance. The System Administrative Council will recommend necessary adjustments in order to balance the budget to the Board Finance Committee for approval by the Board.

GBM 3/01
Reference - Policy 4345 Decreased Enrollment

372 Budget Transfers

The Director of Finance, upon request by the administrator, may transfer budget within the context of a department, fiscal year, and budget division (personnel, administration, instructional, operation). Budget transfers shall be documented and filed by the System Accountant.

When a campus' actual enrollment on September 15th, exceeds or falls short of the budgeted enrollment by five or more students, then enrollment sensitive budget line-items for that site will be increased or decreased proportionately using the contingency funds, according to system-wide per student averages for those line-items. These line items are limited to capital, equipment, photocopy, instructional supplies, library, athletics, music, science, computer, operating supplies, student insurance, student travel and maintenance line items. This transfer will be approved in accordance with Procedure 314 Authorization of Contingency Funds.

SAC 10/01
Reference - Policy 4340 Authorization of Expenses

Financial Reports

376 Line Item Reports

Monthly line item reports will be made available to authorizers for their respective accounts. This will assist the authorizer in being able to accurately track his/her outstanding balance in any given account. A more detailed report of monthly actuals may be requested from the Support Services Accountant, if needed.

SAC 3/95
Reference - None

378 Annual Financial Reports

In addition to the certified report produced through the annual audit, the Director of Finance shall present an annual report for the Superintendent of Schools and the Board of Trustees. The report shall include a statement of revenues, expenditures and changes in fund balances, a summary of investments and reserves, as well as any other documentation, to realistically portray the current financial position.

SAC 93
Reference - Policy 4410 Accounting Standards, 4430 Annual Report

380 Financial Reports

The Director of Finance shall include financial updates in the administrative report prepared for the Board of Trustees prior to Board meetings. The information should include a statement of revenue and expense by campus/department, a year-over-year comparison of actual to budgeted activity, as well as a summary of current financial position. The Director of Finance shall ensure that financial operations comply with Board policy and that expenditures stay within the approved budget. Any deviations within an entire budget category shall be reported, with rationale, to the Board’s Finance Committee.

SAC 2/19
Reference - None

390 Annual Fund

The goal of the Annual Fund is to cultivate a broad-based donor culture among the school’s primary constituents to enhance student learning. Annual Fund is carried out in accordance with the purpose and guidelines defined in policy 4253. The list of projects included in the Annual Fund each year requires Director of Finance approval. Scholarships are to be one of the designated categories each year and communicated to constituents.

Normally, in the spring semester, the principal solicits input from parents and staff in determining the project(s) for the next year and the promotional phase is conducted toward the beginning of the academic year. Normally, projects are implemented and completed within the same academic year as the donation was received and funds designated by a donor for a particular category will be used for that purpose. Donor recognition and appreciation is normally conducted toward the end of the year and may be included in a campus publication. At the end of each fiscal year, at least 5% of total Annual Fund donations will be transferred to the Robert Morrison Scholarship fund, and more may be transferred depending on the amount of donations designated for scholarships.

SAC 8/17
Reference – Policy 4253 Fund Raising for Morrison Academy

392 Fundraising for Other Organizations

Historically Morrison Academy has cultivated a culture of generosity by raising funds for other non-for-profit organizations in Taiwan and overseas. Changes in Ministry of Interior regulations made it virtually impossible to channel these donations through Morrison accounts. Furthermore, Morrison can no longer issue tax deductible receipts for other non-for-profit organization in Taiwan or overseas.

A Principal may invite Taiwan-based social welfare organization to raise funds from the Morrison community, but the donations must be channeled directly to the non-for-profit organizations without being handled by any Morrison personnel.

SAC 2/19

394 Benevolence Fund

Benevolence fund is to provide financial assistance to needy individuals. Contributions to Benevolence funds may receive tax deductible receipts if they are not earmarked for particular recipients. Donors may make suggestions but not designations or restrictions concerning the identity of the needy individuals. The responsible SAC administrator will supervise the fundraising. The Benevolence Fund Committee which consists of the SAC administrator and two independent employees will authorize the distribution of the funds. Funds can be used for, but not limited to, emergency related expenses. All funds raised will become assets under the control of Morrison Academy to be used for the approved purpose. Benevolence payments are reportable income in Taiwan.

Reference - Policy 4253 Fundraising for Morrison Academy
SAC 3/12

395 Campus Fundraising

The goal of campus fundraising projects is to cultivate a culture of generosity and giving. Fundraising programs should be developed in accordance with the following principles.

  1. Avoid donor fatigue by utilizing a variety of fundraising strategies, and minimizing scheduling overlap.
  2. Annual Fund and other major fundraising, besides the Christmas project, should not be initiated between Thanksgiving and Christmas holidays. Normally, the promotional phase of the Annual Fund is conducted toward the beginning of the academic year.
  3. School-authorized class, athletic team, and mission/service fundraising which targets the Morrison community should usually be a group effort, rather than individual, personal initiatives. Normally, these group fundraising efforts repeat yearly and provide a product or service for the community.
  4. Each fundraiser must be for a specific school-authorized event, program, trip or project. Clubs and courses will normally not be allowed to conduct fundraising on campus and/or using Morrison promotional resources (Facebook groups, Announcements, Mailing lists).
  5. The purpose for the fundraising should be clearly advertised.
  6. In accordance with Taiwan tax laws, all funds raised are considered assets of Morrison Academy to be used for the approved purpose.
  7. If products or services are sold for the purposes of fundraising, prices may only be advertised within the Morrison community.

Fundraising must be approved by the Principal or their designee. When new fundraising programs are proposed the Principal will consult with Director of Finance to ensure the consistent implementation of these fundraising principles.

SAC 11/20
Reference - Policy 4253 Fundraising for Morrison Academy
Procedure 210 School-Authorized Events/Programs
Procedure 390 Annual Fund

procedures_manual/300_finance.txt · Last modified: 2024/03/10 14:31 by larry

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