In every aspect, Melbourne Grammar is a well-governed, carefully managed school. This includes our financial management. As an independent school funded in large part by school fees, we understand how vital it is to create a budget that protects families’ investments in education.
Our annual budget is created with the goals of Towards 2030 clearly in mind. Towards 2030 provides the vision, while our operating plans and budget set out the steps required to move toward that vision in the immediate, medium, and long term.
The decision-making process that goes into creating our budget includes not only members of the School Council, but also the executive team led by our Headmaster, including our Director of Business and Finance and our Finance and Audit Committee members. These layers of experience, expertise and credibility ensure our financial assumptions that underpin our forecasting and budget setting are sound, reasonable, and allow for challenges we may not foresee.
By operating on a 10-year cashflow model, we are able to make strategic decisions about the timing of our expenditure. In our assumptions and decisions, we not only take our current educational offering and any new School programs we may decide to introduce into account, but also the lifespan of our physical and non-physical assets – everything from the stonework in our buildings to the software behind our IT systems.
Through the Melbourne Grammar School Foundation, we also have access to endowments and donations, and it is vital these investments are extremely well managed. Our Investment Committee brings together a group of highly experienced people who generously volunteer their time to ensure our investments are protected and able to sustain our School well into the future.
These collective actions mean that, when negative changes in our operating environment occur – such as changes to tax systems and government funding models – the School is well placed to respond and deal with the situation in a careful and conservative manner.
Our stance is not to necessarily place undue pressure on school fee levels as the first mitigation step. Rather, we assess all potential mitigants.
Our School’s ability to retain all staff members while simultaneously reducing school fees for periods of time during the COVID-19 pandemic is a strong example of how important this conservative long-term thinking is.
Council Membership Changes
As we move into the second half of 2023, I would like to take this opportunity to farewell a great contributor to the Melbourne Grammar School Foundation and School Council, Dr Amanda Day (OM 1994). Amanda joined the Foundation Board in 2017, and was then invited to join the School Council in 2019. She brought valuable experience to these roles, particularly drawing on her paediatric medical background, which meant she was able to provide expert advice during the COVID-19 pandemic. With two children currently at the School, Amanda has an ongoing connection to our community, and we thank her for her expert guidance and knowledge.
I would also like to welcome another Old Melburnian to the School Council. Geoff Russell (OM 1973) is part of a family that has been at the School for generations. A former Captain of Boats, Geoff brings his particular experience as a Melbourne Grammar boarder to his new role on the School Council. His connections with rural communities will be a great asset to the School, ensuring our decision-making accounts for the needs of those living outside metro areas. Geoff joined the School Council in February 2023.
Andrew Michelmore AO
Chair of Council
