Congratulations! Your school and the board of trustees have arrived at the end of what was hopefully another successful school year. But, before the year’s end, your board should aim to accomplish a few key tasks, as mentioned in last month’s SAIS Board Bulletin.

One additional year-end area of focus for your board is the current financial condition of the school. Some board members may find the various numbers associated with financials to be a bit intimidating, but there’s no need to be worried.

Indeed, reviewing financials is much like reading a detective novel – you are looking for themes and clues that will help you discover if the school’s financial shape is worse or better than last year.

To assess the school's financial health, each board member should understand the following:

• How does the amount the school has in savings compare to previous years? You can find this information on the balance sheet. Look for the amount in savings accounts and endowment funds, add them up, and you’ve ascertained the school's savings.

• What is the expected surplus or shortfall for the year? This information is on the income statement. The net income is located at the bottom of the sheet.

• Look at next year’s budget. Make certain that it is forecasting a balanced budget or even a budget with a surplus. 

It’s important to note that the figures your board will review at its final meeting of the year will be preliminary and will be finalized over the summer as the school prepares for its annual audit.