Action+Plan+Finance+Securing+Equity

ACTION NAME: **Plans for Equity development.**

In the mid to long term equity must develop positively. To maintain freedom of action within the current level of operation, and to maintain liquidity in the longer term, the end of year budget balance must be at least large enough to be able to pay installments on loans without compromising liquidity. To make the school less dependent on financial volatility and uncertainty we need to build up a buffer, or free up equity. This will provide greater opportunities for development and provide room for financial growth. The college has a strong desire for cash to be used for educational purposes within a reasonable time. Nevertheless any budget will always include a degree of uncertainty and we need to maintain a fixed surplus at the end of each year. New investment or development within the school, which substantially affects the school's financial structure will have to be financed independently or somehow made to fit within this financial strategy.
 * DESCRIPTION**

Set a target annually in the budget for the development of the equity in the form of a positive financial result of between 1% to 3% of our annual revenue.
 * MEASURABLE GOAL**

Present a Budget to the Board in December within this framework.
 * TIMEFRAME AND MILESTONES**

Director of Finance
 * RESPONSIBLE PERSON**

No extra costs are involved.
 * COST**

To create a more secure, longer term and sustainable financial and funding model Maintain cost discipline and control.
 * RELEVANT FOR:**

**STATUS: **  Complied with in 2010 financial report.  Built into 2011 budget.  Warning of surplus becoming too high by Direktorat noted by Finance Director and Development Director.  Meetings with Danish Utdanning department November encouraged search for Nordic Funding.