Morrison Christian Association is a Christian not-for-profit corporation.
Morrison Academy will manage its financial resources in order to provide quality education at a reasonable cost for current and future missionary families in Taiwan.
Morrison Academy shall abide by all laws and regulations of the Republic of China and, where applicable, the United States.
In order to implement the financial philosophy, Morrison Academy will:
Morrison Academy shall maintain clear standards of document retention stated in the Administrative Procedures Manual.
Upon any indication of an official investigation of Morrison Academy and/or its personnel by any governmental entity, related document destruction shall be suspended immediately until at least seven years after an investigation has been completed. (See also Policy #5705 CHILD ABUSE INVESTIGATIVE PROCESS.)
Funds may be raised and donations accepted for specific Board approved purposes of Morrison Academy. Approved purposes may include:
Donations will be accepted only for purposes that fit the needs and plans of Morrison Academy.
Approval and Supervision
Fundraising projects and the acceptance of donations under NT$400,000 will be approved by the Principal in consultation with the Superintendent. The Principal or his designee will supervise the fundraising.
Fundraising projects and the acceptance of donations in excess of NT$400,000, but under NT$2,500,000 will be approved by the Superintendent. The Superintendent or his designee will supervise the fundraising.
Fundraising in excess of NT$2,500,000 and capital campaigns shall be recommended by the Superintendent and approved by the Board Finance Committee and the Board. The Superintendent or his designee will supervise the fundraising.
Morrison Academy may engage in 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).
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, bypassing the school’s usual waiting list and class size limits.
The specific number of TCDs and ACCs allowed for each campus is set by the Board. 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 TCD is a non-interest bearing instrument and is not secured by any of the property, assets, or undertakings of the school. The Board determines the value of each TCD. 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 renewable on an annual basis once the nominated student is enrolled. The Board determines the minimum fee as a percentage premium applied to all tuition and fees. The fee percentage is stated in the contract terms and is payable on an annual basis if the contract is renewed.
The Board reserves the right to reacquire a corporation’s TCD or rescind an ACC at any time if it determines that a corporation is engaging in business activities that conflict with the core values of the school.
Morrison Academy will normally use internal financing for projects. Short-term debt, for no longer than twelve months, may be incurred to provide services or facilities in a timely manner and shall be reported to the Finance Committee.
Board approval is required to incur long term debt for longer than twelve months.
Morrison Academy will use internal reserves for self-insurance whenever possible. Morrison Academy may purchase insurance as one method of managing risk not covered by internal reserves. The Director of Finance and the Finance Committee will annually review the insurance needs of the school and make necessary recommendations to the Board.
Morrison Academy assumes no responsibility for lost, stolen, or damaged personal property, even when stored on campus.
Reasonable precautions will be taken by Morrison Academy and its staff to protect and prevent anyone on school premises or anyone engaged in school activities from being injured. HOWEVER, Morrison Academy assumes no responsibility for injuries an employee/student may receive, or for property damage or injury they cause outside of school activities whether on or off school property.
FURTHERMORE, Morrison Academy will assume no responsibility for injuries an employee/student may receive, or for property damage or injury they may cause on or off the school premises when engaged in school activities, if they do not demonstrate responsible behavior, or when they do not follow school procedures/policies.
In order to fulfill the stated purpose of the school in helping missionaries educate their children, Morrison Academy may grant discounts on tuition and fees for those who qualify as missionaries under the requirements of Policy #1613 MISSIONARY and who reside in Taiwan. As part of the annual budget adoption process, the Board of Trustees will determine the discounts. The total missionary discount shall not exceed 60% of tuition linked to the rate at the lowest campus price, registration and the following fees: entrance, building, dormitory program, dormitory facilities, English Language Learner and Learning Needs. The missionary discount for each of these fees may be set individually.
The Finance Committee shall determine the specific missions, churches or other sending organizations which are eligible for missionary discounts. Members of these organizations will be granted continued missionary discounts by the Director of Finance provided that the individual remains in good standing with and accountable to that organization, resides in Taiwan, and continues to meet the requirements of Policy #1613 MISSIONARY.
The Director of Finance shall approve applications and annual renewal applications for individual missionary status according to the definition in Policy #1613 MISSIONARY. Exceptions to Policy #1613 MISSIONARY may be granted by the Finance Committee and shall be reported to the Board.
The school may require the following documentation from an individual to support an initial application or annual renewal for missionary discounts:
The school may also require the following documentation from the mission:
Morrison Academy may grant discounts to those who qualify as Christian Workers according to the requirements of Policy #1614 CHRISTIAN WORKER or to those who qualify as missionaries according to Policy #1613 MISSIONARY, but who reside outside of Taiwan. As part of the annual budget adoption process, the Board of Trustees will determine the percentage of the discounts. These discounts shall not exceed 50% of tuition, registration and the following fees: entrance, building, dormitory program, dormitory facilities, English Language Learner and Learning Needs. The Christian worker discount for each of these fees may be set individually.
The Finance Committee shall determine the specific missions, churches or other sending organizations which are eligible for Christian worker discounts. Members of these organizations will be granted continued Christian worker discounts by the Director of Finance provided that the individual remains in good standing with and accountable to that organization, and continues to meet the requirements of Policy #1614 CHRISTIAN WORKER or Policy #1613 MISSIONARY.
The Director of Finance shall approve applications and annual renewal applications for individual Christian worker discounts. Exceptions to Policy #1614 CHRISTIAN WORKER may be granted by the Finance Committee and shall be reported to the Board.
All applicants for a Christian worker discount must provide documentation that demonstrates that the applicant meets all these requirements. Additionally, a Taiwan Christian worker must provide financial disclosure with evidence that the total family income is less than NT$2,500,000 per year, and that less than 50% of family income is derived from non-ministry related employment. Family income is defined as the gross income that is reported on the Republic of China tax return and exempted income not reported on the Taiwan tax return for both spouses, not including education funds for Morrison Academy. Missionaries who reside outside of Republic of China must provide financial disclosure with evidence that the total family income is less than NT$2,500,000 per year.
The school may also require the following documentation from the organization:
The Board may authorize a discount for missionary and Christian worker families with multiple children in the school in conjunction with the annual approval of fees.
On the basis of demonstrated need, parents of students enrolled in Morrison Academy may apply for Financial Aid Grants to help pay for tuition, boarding, Learning Needs (LN) and English Language Learner (ELL) fees. Requests for such aid will be considered without regard to their missionary or non-missionary status.
There are two categories of Financial Aid Grants: Short Term Grants and Long Term Grants. Both categories are based on financial need. Long Term Grants are also based on class size and the family’s positive contribution to the school’s Christ-centered Core Values.
|CRITERIA FOR INITIAL DECISION||SHORT TERM GRANTS||LONG TERM GRANTS|
|Person Initiating Application||Parent||Principal|
|Application Date||After admission||Any time|
|Maximum Years||2||Finance Committee’s Discretion|
|Max class size (in initial year)||n/a||Policy 5205|
|Faith of parents & student||n/a||Protestant|
|Maximum Family Income||$2,500,000||$2,500,000|
|Maximum Grant||30% (50% maximum)||30% (50% maximum)|
Short Term Grants are determined after enrollment, and should not be an expectation for enrollment but to assist in order to help meet short-term financial needs such as, but not limited to, business failure, loss of missionary support, or major medical expenses. The family should meet all of the “Financial Conditions” listed below. Short Term Grants may be awarded to 30% of registration, building fees, tuition, dormitory program and dormitory facilities fees, as well as LN and ELL fees. In the case of extreme hardship, grants may be awarded up to a maximum of 50%. Grants are calculated on the balance due after discounts have been applied. Cases that are exceptional or involve extreme hardship will be referred to the Finance Committee. In case of questions regarding the decision of the Finance Committee, the full Board can be polled.
Long Term Grants may be granted before or after enrollment. The financial aid application process must be initiated by a written recommendation from the Principal to the Director of Finance. The initial authorization of a Long Term Grant must meet all of the following conditions:
In the case of extreme hardship Long Term Grants may be awarded to a maximum of 50% of registration, building fees, and tuition.
All grants are paid from a Board-budgeted Financial Aid Account, . Grants must be renewed annually and are dependent upon the availability of funds for that particular budget year.
The Director of Finance, in consultation with the Board Treasurer, will authorize the distribution of Short Term Grants and administer the Financial Aid Account. Long Term Grants must be minuted by Finance Committee.
Alumni Scholarships may be granted to graduates of Morrison Academy who are enrolled in an undergraduate educational program. These scholarships will be awarded based upon services provided to Morrison Academy. Each scholarship will be funded by the Financial Aid account, and will be given directly to the undergraduate educational institution.
Alumni Scholarships will be authorized by the Director of Finance and reported to the Board Finance Committee (Policy #4285).
Scholarship from the Robert Morrison Fund may be granted to families that demonstrate a commitment to Christ’s Great Commission and cannot afford to attend Morrison without financial assistance. These scholarships may be granted to missionaries according to the requirement of policy #1613 MISSIONARY and according to the requirement of policy #1614 CHRISTIAN WORKER. They may also be granted to other Christians who meet all of the following criteria:
The Robert Morrison Fund shall be funded by designated gifts and kept in the Robert Morrison Fund account. The granting of scholarships is dependent upon the availability of funds. Within the Robert Morrison Fund, specially designated scholarships (e.g. a memorial scholarship) may be established and recipients must meet any special qualifying criteria in addition to the criteria mentioned above. Scholarships may also be granted from the Robert Morrison Fund with no special designation.
The Director of Finance collaborates with the Principal on recommendations for individual students based on family financial need and the student’s progress. The Finance Committee shall administer and authorize the distribution of this Fund, and will consider applications submitted by April 30. Normally scholarships will be awarded by May 31 for the following school year. These scholarships are awarded annually on a case-by-case basis. Recipients may reapply each year. Scholarships may be up to a maximum of 50% (after any other discounts) of entrance, registration, tuition, building/facility fees, and dormitory program fees. Recipients of these scholarships cannot qualify for Financial Aid.
Missions are to be reimbursed salary and benefits for each mission-supported employee contracted by the school.
Long-term lease contracts shall be those contracts that provide for leasing Morrison Christian Association property for a period longer than 24 months.
Property designated in the Site Plan for long-term lease shall be available for lease.
The Finance Committee of the Board of Trustees will consider and make a recommendation to the Board of Trustees to enter a contract for long-term lease.
The following factors will be considered in establishing long-term lease contractual agreements with lessees:
If in favor, the Board of Trustees will make a recommendation to the Taiwan Provincial Morrison Christian Association Juridical Entity to enter into a long-term lease contract. These contracts must have the express written consent of the majority of the Directors of the Morrison Christian Association Juridical Entity. Long-term lease contracts will be signed by the chair of the Morrison Christian Association Juridical Entity and must be notarized by the appropriate Chinese court.
The administration will have the authority to enter into lease contracts for 24 months or less and shall establish procedures of the use of facilities.
The Director of Finance shall monitor and report to the Board the status of all funds according to the following principles:
The Director of Finance shall adhere to the following cash management principles:
The projected annual expense of the school budget shall not exceed the projected annual revenue.
Morrison Academy will give first priority to educational programs and direct student services.
Morrison Academy will pursue an aggressive policy of collecting school bills. Tuition and fees not paid within 30 days of the first day of the semester normally will result in the removal of the student from the school unless a Deferred Payment Plan has been agreed upon.
Those receiving a Morrison provided service are expected to pay a fair share of the real cost of the service provided. The Board of Trustees may authorize a subsidy of a specific program or service deemed important to fulfill the purpose and vision of the school. Resale, auxiliary services, and instructional programs not covered by tuition are to be self-supporting. All tuition and fees generated by any school or department are considered part of the Morrison Academy operating budget and are to be reflected therein.
Registration, entrance fees, building fees, tuition, dormitory fees, and Learning Needs (LN) and English Language Learner (ELL) instruction fees, as well as the authorization to collect revenue, will be established by the Board of Trustees in conjunction with the annual budget approval process. Revenue projections shall be based on realistic enrollment estimates.
ELL and LN programs are not covered by tuition. A fee shall be charged to the parents of an individual identified as an ELL or a LN student. (See Policy #5240 LEARNING NEEDS PROGRAM and Policy #5250 ENGLISH LANGUAGE LEARNERS) ELL instructional fees shall cover personnel costs. In order to assist missionaries, Morrison Academy may maintain a system-wide LN service deficit that shall not exceed 65% of the program’s personnel salary and cash benefits costs.
User fees are fees other than the Board established fees and shall be established by the Director of Finance and reported to the Finance Committee. User fees for facility rental shall be set in accordance with current market value and shall reflect the full cost of facility operations and depreciation. Discounts or waivers may be established for Christian missions and churches by the Director of Finance. Discounted facility user fees shall cover the full cost of operations, excluding depreciation. Discounts shall not exceed the following:
Any exception to the above discounts shall be reported to the Finance Committee.
The annual line-item budget is approved by the Board.
Budgeted expense requests shall be authorized, in writing or electronically, by the appropriate administrator prior to payment. Expenditures over NT$2,000,000 will require authorization from the Director of Finances and another administrator.
Administrators may authorize overseas 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, and capital. These payables will be automatically charged to the next year’s budget.
Should enrollment fall two percent below the budgeted student enrollment during a current year, the Board will require the administration to provide, by the following Board meeting, a list of expenditures to be reduced in order to maintain a balanced budget.
The number of personnel assigned to each school campus will be authorized by the Board of Trustees through the budget process. The Enrollment/Full-Time Equivalent Ratio will be reported to the Board annually. Dorm, ELL, Learning Needs, and Instrumental Music Lesson personnel will be excluded from calculating this ratio.
To ensure observance of limitations and restrictions placed on the use of resources available to the school, the accounts of the school shall be maintained in accordance with the principles of fund accounting. Separate accounting shall be maintained for each fund.
The following funds shall be maintained:
The Current Fund contains the economic resources for the day-to-day financial transactions of the school. The expenditure of these funds shall be determined by the yearly budget.
Plant and Development Fund
The Plant and Development Fund contains (a) unexpended funds to be used for the acquisition, renewal, or replacement of land and buildings and (b) funds already expended for and thus, invested in equipment, land, and buildings. The sources of income for this fund are transfers from the Current Fund, building fees, money raised through fundraising, and profits from non-operating sources. The annual transfer from the Current Fund plus the Building Fee must be at least 6.5% of the budgeted annual revenue. All expenditures from this fund must be authorized by the Board.
The Endowment fund contains economic resources invested to produce income that may be used to carry out specific objectives of the school. The primary sources of revenue of this fund are gifts and contributions from individuals, corporations, institutions, and Board authorized transfers. The principle of this fund is to remain in perpetuity. The creation of new endowments must be authorized by the Board.
National Retirement and Severance Reserve Account
Retirement and severance benefits for national employees will be held in the National Retirement and Severance Reserve Account. An adequate amount will be budgeted annually to insure that the national retirement and severance benefits are at least 90% vested.
Crisis Plan Reserve Account
A minimum of one million US dollars will be held in a US account for the Crisis Plan Reserve Account to facilitate contingency plans in the event that the school must be closed for an indefinite period of time. This account will be subject to the same guidelines as in Policy #4296 INVESTMENTS. The minimum amount will be reviewed at least every two years by the Board of Trustees.
At the close of each fiscal year the surplus or deficit in the Current Fund in accounts other than reserve accounts will be transferred to the Plant and Development Fund. It will be reported to the Board in the Year End Statement.
Morrison Academy will use accounting procedures and principles in accordance with the Republic of China Generally Accepted Accounting Principles (ROC-GAAP), as they relate to not-for-profit organizations.
Morrison Academy will not postpone current obligations to the future, accrue future revenues to the current fiscal year, or extend the length of the fiscal year.
Full disclosure will be provided in the annual financial statements.
The fiscal year runs from July 1 until June 30.
An annual audit by a certified auditor shall be required at the end of each fiscal year.
Morrison Christian Association may purchase, use or hold real property for school related use or investment purposes.
All property sale, purchase, and long-term lease transactions must have the express written consent of the Board of Trustees of Morrison Christian Association as well as the consent of the majority of the Directors of the Taiwan Provincial Morrison Christian Association Juridical Entity and must be registered with the appropriate Republic of China authorities.
Sale prices of land, in the event of a sale, shall be determined by the buyer and seller, and shall have no reference to the original purchase price. Morrison purchase of property within the Taichung faculty housing area shall be governed by the terms of Policy #4511 MORRISON CHRISTIAN ASSOCIATION PROPERTY TRUST AGREEMENTS.
The Taiwan Provincial Morrison Christian Association Juridical Entity property list must be updated each time Morrison Christian Association either buys or sells property and each time this policy is reviewed.
Morrison seeks to provide equitable housing options for expatriate, head-of-household personnel. The school will offer either school-managed housing or a housing allowance.