Treasurer’s Report

AGM 11th February, 2021

Presented by Jean Claude MICHEL, Finance & Administration Director

 • ISM is a non-profit making organization.
• This fiscal year covers from September 1st, 2019 to August 31st, 2020. The annual accounts
are presented in accordance with the “Monégasque GAAP”.
• Tuition fees are the main source of recurrent income. Tuition fees are payable entirely in
advance of the financial year under review. Cash reserves have been built up since the
school creation.

ISM’s Key • The annual accounts as of August 31, 2020 have been audited by Ernst & Young Monaco
who have issued a clean opinion.

Financial • The accounting principles are consistent with the ones revised last year and approved by
the Members in order to :
- give a clearer view of the revenues and expenses per category as well as of the net

Features current (operational) profit or loss;

- disclose the profit/loss generated during the fiscal year before allocation to
reserves/retained earnings;
- allocate the final surplus (+) or deficit (-) generated during the fiscal year to retained
earnings;
- present the total net equity (capital/reserves/retained earnings) to show the available

2019 / 2020 accumulated resources and to enable future follow-up of allocations to specific
projects, dedicated expenses and investments.
• The profile of the balance-sheet figures as of August 31st , 2020 as well as of the income
statement for 2019/2020 is similar to the one of the previous year. The loss generated for
2019/2020 amounts to K€ 222 compared to K€ 304 for the previous year.
• The annual result is allocated as follows to obtain a zero final balance and comply with legal
obligations. (in K€) :
- Dedicated reserves (Capital Development Fund): +485
- Other retained earnings: -707
 Actual vs Budget - 2019 / 2020
Actual 19/20 Budget 19/20
Total income 15,6 M€ Total income 15,4 M€

Total expenses 15,8 M€ Total expenses 16,8 M€

Result as per 31/08/2020 - 0,2 M€ Result as per 31/08/2020 - 1,4 M€

The difference between the Forecast and the Budget comes mainly from the
reduction of depreciation of the EY building of -1,2 M€ amortized previously up
to 2021 and now up to 2023.
Net Assets in Keur
Net Equity in Keur
 Annual Accounts 2019 / 2020
ACTUAL ACTUAL Actuals 2019 / 2020
1.86
2018 / 2019 2019 / 2020 Expenses %
3.24
INCOME 3.15 7.68
Sal aries and social charges
King's partnership

Net Tuition Fees 15 271 15 442 16.00 Education Related

54.82 General Office / Maintenance
Total Income 15 271 15 442
Consultants
Rent
EXPENSES 4.41 Services
3.82
Salaries and social charges 7 757 8 587 Cafeteria
4.30
King's partnership 0 114 Depreciation
0.73 Other Expenses
Education Related 448 690
General Office / Maintenance 770 674 Actuals 2018 / 2019
Consultants 596 598 3.21 Expenses %
Rent 2 418 2 506
12.81 Sal aries and social charges
Services 274 493
5.46 King's partnership
Cafeteria 852 507 1.75
49.67 Education Related
Depreciation 2 001 1 203 General Office / Maintenance
15.48
Other Expenses 459 292 Consultants
Rent
4.93 2.87 Services
Total Expenses 15 575 15 664
Cafeteria

3.82 Depreciation
Net Loss -304 -222 0.00 Other Expenses
 • Ernst & Young and in particular Sandrine Arcin
audited the ISM Financial Statement 2019/2020 and
gave a clean opinion.

Statutory • The total amount fees for the audit review is

reaching 22 keur.
Audit
• The Treasurer and the Board of Trustees is
proposing to appoint Sandrine Arcin (Ernst &
Young) as statutory auditor for the 2020/2021
financial year.
 • ISM budget 2021 / 2022 is following the strategy
already started a few years ago to invest a significant
proportion of ISM reserves in Education, keeping a
slight increase of tuition fee every year with the
target to be at a break even point in 3 years with a
Budget reasonable amount of reserves in our books
(minimum 50% of one year’s tuition fee).
2021/2022
• The next slide is representing this financial and
reserves target over 5 years, which is under control
and within range from a financial point of view.
 Budget 2021 / 2022
BUDGET BUDGET
2020 / 2021 2021 / 2022
INCOME

Net Tuition Fees 16 165 16 956 Budget 2021 / 2022

Total Income 16 165 16 956 0.86 Expenses %
7.29
EXPENSES 3.78 4.50
Sal aries and social charges
Salaries and social charges 9 926 10 300
King's partnership
King's partnership 980 1 016 13.40
Education Related
Education Related 779 877 53.63 General Office / Maintenance
General Office / Maintenance 786 801 Consultants
4.17
Consultants 482 482 Rent
4.57
Rent 2 524 2 574 2.51 Services
5.29
Services 779 726 Cafeteria
Depreciation
Cafeteria 847 864
Other Expenses
Depreciation 1 360 1 400
Other Expenses 188 166

Total Expenses 18 651 19 206

Net Loss -2 486 -2 250

 TOTAL INCOME
16,165 16,956
16,000 15,442
15,271

14,000

12,000

Revenue
10,000

8,000

Evolution 6,000

4,000

2,000

2018 / 2019 Actuals 2019 / 2020 Actuals 2020 / 2021 Budget 2021 / 2022 Budget
 Main expenses evolution
MAIN EXPENSES
9,926 10,300
10,000

8,587
9,000
7,757
8,000

7,000

6,000

5,000

4,000

3,000

2,000 980 1,016 448 690 779 877 852 507 847 864
1,000 0 114

0
Sal aries and social charges King's partnership Education Related Cafeteria

2018 / 2019 Actuals 2019 / 2020 Actuals 2020 / 2021 Budget 2021 / 2022 Budget