Gustavo Junqueira
Board Treasurer

Graded – The American School of São Paulo closed FY2020-21 with a positive operational result of R$5.7M. Total income of R$145.53M represents 1.9% revenue above budget. Personnel expenses of R$114.75M came in at R$2.89M over budget. An unfavorable exchange rate at the start of the school year resulted in an initial overage due to our foreign faculty retention package. Fortunately, higher-than-budgeted enrollment proved to be a key mitigating factor. Total discretionary expenses of R$22.82M closed the year 12.1% below budget, which was directed to reserves to offset forecasted inflationary scenarios and foreign exchange volatility. Successful contract renegotiation and the Graded Leadership Team’s effective fiscal management helped counter the stronger USD.

FY20-21 expenses related to COVID-19 health and safety measures totaled R$3.6M in operating costs and R$ 1.6M in capital expenditures. These included:

  • Air conditioner retrofitting
  • Sound system and cameras for dual-synchronous learning
  • Lunch serving stations and additional seating with acrylic shields
  • COVID-19 testing for all Graded employees
  • Thermal cameras
  • Health and safety signage
  • Installation of hand sanitizer dispensers throughout the campus
  • Additional nursing staff

As reported last year, the economic impact of COVID-19 has adversely affected some of our families. During the previous fiscal year, Graded granted tuition payment deferrals to those in need, to be paid during the first semester of the 2021-22 school year.

When the Graded campus closed in March 2020, the school experienced savings in unfixed costs of R$1.6M. All families were offered a tuition discount, and 44% of families opted to donate that money to the Graded Annual Fund’s Community Financial Aid Fund and/or the Graded Scholar Program. The school was, therefore, able to augment its financial aid budget and provide R$1.3M in assistance to those in need. 

Graded closed the year with operational reserves of R$60.8M, amounting to 4.85 times monthly income. This amount exceeds the three-month minimum reserve requirement established by the Board of Directors. These operational reserves will enable Graded to weather the current crisis and continue to recruit and retain first-class educators. Solid reserves have also allowed us to balance the diversity of incoming students and remain a truly global American school with an internationally recognized high-quality education. 

Graded’s capital investment funds closed the year with a balance of R$5.24M. The funds, which will be fortified during the 2021-22 fiscal year, will continue to address the ongoing campus renovations. 

Graded’s Endowment Funds closed the year with a balance of R$35.9M. This year, the Graded Scholar Program supported eight full-tuition scholarship students.  

Despite the economic crisis caused by the COVID-19 pandemic, Graded has been able to overcome fiscal challenges and maintain its international academic reputation.

I would like to thank my colleagues (new and old friends) — members of the Finance Committee and other members of the Board — for their expertise, advice, and support throughout this year.

Best regards,

Gustavo Junqueira
Board Treasurer



This financial report was prepared and audited by Ernst & Young and represents the fiscal year ending June 30, 2021. Graded would like to thank members of the Finance Committee for their expertise, advice, and support throughout the intensive review process. Members included: Fabio Coelho, Ana Carla Abrão Costa, Marc Menden, Luiz Galeazzi ’81, and Gustavo Diniz Junqueira. Ex Officio members: Superintendent Richard Boerner and Director of Business and Operations Elaine Gabor.