Policy Statement:

Lakeway Christian Schools (LCS) is committed to providing the Board of Directors with accurate, timely, and comprehensive financial reports to facilitate informed decision-making and oversight of the organization's fiscal affairs. This policy outlines the principles and procedures governing the preparation and presentation of financial reports to the Board.

Principles of Board Financial Reports:

• Accuracy and Timeliness:
  • Financial reports presented to the Board shall be accurate, reflecting the true financial position and performance of LCS. They shall also be provided in a timely manner to enable the Board to make informed decisions.
• Transparency:
  • Financial reports shall adhere to principles of transparency, ensuring that financial information is presented clearly, concisely, and comprehensively. Reports shall use standard accounting terminology and formats to facilitate understanding.
• Frequency:
  • The frequency of financial reporting to the Board shall align with established reporting schedules, typically on a monthly, quarterly, and annual basis. Additional reports may be provided as deemed necessary.
• Comparative Analysis:
  • Financial reports shall include comparative data, enabling the Board to assess current financial performance in relation to prior periods and budgets.

Financial Report Content:

• General Purpose Financial Statements:
  • LCS shall prepare General Purpose Financial Statements that encompass the following:
    • Statement of Financial Position (Balance Sheet): Provides an overview of assets, liabilities, and equity as of the end of the reporting period.
    • Statement of Activities (Income Statement): Presents revenues, expenses, and net income or loss for the reporting period.
    • Statement of Functional Expenses: Details expenses by function or program.
    • Other Informational Reports: Includes additional financial reports and information relevant to LCS's financial health.
• Budget vs. Actual Analysis:
  • Financial reports shall include a budget vs. actual analysis, highlighting variances between the budgeted and actual financial performance. Variances shall be explained and discussed as necessary.

Comprehensive Annual Report:

The comprehensive annual report shall serve as a means of engaging stakeholders by providing a holistic view of LCS's financial performance, achievements, and goals.

Reporting Responsibility:

• Finance Department:
  • The finance department is responsible for the preparation and distribution of financial reports to the Board.
• Board Review:
  • The Board of Directors shall review financial reports promptly upon receipt. Any questions or concerns regarding the financial reports shall be addressed in a timely manner.

Review and Revision:

This policy shall be reviewed annually and revised as necessary to align with changes in financial reporting standards, organizational needs, and best practices. Any proposed revisions to this policy shall be presented to the Board of Directors for approval.

References:

• LCS Mission Statement
• LCS Strategic Plan
• LCS Financial Policies and Procedures
• Federal Laws, Regulations, and Standards