Annual Report 2025 - Other - Page 19
Annual Report 2025
17
2026–27 Budget
In January 2026, the Board of Governors approved a balanced Zero Nominal Growth (ZNG) budget for the 2026–2027 school year. The budget considered the continuing effects of inflation of 3.5-4% applied on both staff
salaries and non-personnel costs. However, through variety cost containment measures, the 2025–2026 level of tuitions will remain unchanged in
the next school year. The 2026–2027 budget is based on projected revenues of €42.0 MM, including revenue of €38.6 MM from tuition and other
fees, including capital fee of €0.9 MM to be allocated to capital reserve
fund, €2.2 MM from subsidies and grants and €1.6 MM from other school
revenues.
2026–2027 Budget
Category
Tuition & One Time Fees
Revenue
38,584,800
Other School Fees
400,000
Subsidies and Grants
2,222,500
Capital Fee allocation to reserves
(919,900)
Other Revenue & Income
1,597,000
Financial Result*
130,000
Category
42,014,400
Category
Expenses
Academic Expenses
1,771,200
Personnel Costs
35,207,200
Opex Costs
4,716,500
Category
41,694,900
Reserves
319,500
CAPEX
Allocation to Reserves
919,900
As in previous years, by far the largest school expenses are for personnel
costs, now comprising 84% of the total budget. The school will be carefully planning further rationalization measures aimed at controlling this
largest cost category in order to ensure financial sustainability. Academic
expenses, including materials, trip costs and exam fees, comprise 4% of
the total budget. Administrative costs, including maintenance, energy,
security, cleaning, IT, leasehold obligation and other non-academic operating expenses comprise 11% of the total budget. Also, the School insourced extra-curricular and sport activities with no cost impact to the
budget, however, bringing additional operational flexibility, quality and
agility. The budget includes the payment of annual leasehold agreement
obligation of €1.9 MM representing 5% of the total budget (within the
11% administrative costs) funded from the already mentioned efficiency
measures and tight cost controls, without a need to use financial reserves.
Total €0.9 MM will be allocated from capital reserves for safety and security related infrastructure projects and regular replacement of IT assets.
The budget also includes a 1% contingency reserve, which, if not needed,
will be credited to operational reserves.
