Financial Strategy
School Management > Strategic Plan 2008-2018 > Financial Strategy
Fees alone have never covered the total costs of a Tonbridge education. We thus remain dependent on various sources of income, beyond fees.
The school is fortunate to have the advantages of an historic endowment that has been well husbanded by the Skinners' Company. However, it now provides only about 5-10% of the school's annual income. The newly-established Tonbridge School Foundation is tasked with strengthening the school's long-term financial position. The financial strategy set out by the Governors highlights the following points:
- Reserves. The governors' reserves policy is to maintain unrestricted funds at a level to allow sufficient liquidity for normal operations and to support the development activity.
- Surplus. A minimum core operating surplus of 5% of budgeted expenditure, calculated on a rolling three year average, reflecting the essential costs of running the school as well as an appropriate surplus to contribute to development projects.
- Maintenance. A cumulative annual increase of at least 10% for renovations and renewals should normally be incorporated into each budget.
- Borrowing. Within limits as set out by Governors' Finance and General Purpose Committee.
- Fee levels. Governors are minded to keep any fee increases to an absolute minimum whilst not jeopardising the high quality education offered to boys at Tonbridge.