Ä¢¹½ÊÓÆµ is a not-for-profit school which means that once the expenses are paid, additional money raised goes back into the school, this can either be allocated annually in the short term or it is ringfenced for longer term projects and development. Each year, the school budgets for its expected expenses and looks at its potential income. We do not receive income for any government or other organisation therefore our budget is based on the fee income from students enrolled at Ä¢¹½ÊÓÆµ. There are some factors which impact us greatly such as rising inflation, changing exchange rates and the number of students. We separate our expenditure into Capital (this includes buildings, facilities and long term resources, further examples can be seen) and Operations (among other things, this includes consumable items, daily resources, salaries, taxes and utilities). Each year our finances are externally audited in two different ways. There is an internal audit which is carried out twice a year by an external company, this helps us to know that we are doing everything correctly and identify areas in which we might want to improve. There is also an annual external audit, this makes sure that we are fully compliant and information from this report is shared with parents annually at our AGM, submitted to relevant Nepali government departments and filed with the Inland Revenue. Running a large organisation such as an international school is complex and can be like managing a village and all its infrastructure. Sometimes parents have asked us about the budget headings we use and there are some explanations .