Current enrollment numbers provided by Sarah in her Executive Director updates.  

April 2024 Financial Overview

·       Funds Received: $154,326

·       Expenses: $170,851

o   Salaries: $84,302

o   Benefits: $23,950

o   Professional Services: 38,080

o   Building Services: $5,637

o   Administrative Services: $10,055

o   Supplies: $3,577

o   Uncategorized Expenses: $2,172

·       Negative Cash Flow: -$16,525

·       Ending Balance of Operating Account: $356,276

Future Projections

·       Projected Ending Cash Balances:

o   May 2024: $370,126

o   June 2024: $279,094 (+$38,829 increase from the last projection)

·       Cash on Hand: 50 days in March 2024, expected to decrease to 39 days by June 2024

We are projected to have a positive cash balance and meet performance standards through

2024-25 Budget Summary/Overview

Edtec has prepared the budget for the 2024-2025 academic year. The Finance Committee, in collaboration with the Executive Director and Board President reviewed and provided input.  

We project a 26% increase in revenue and a 25% increase in expenses for 2024-2025. This budget is based on an expected enrollment of 180 students, supported by 9 teachers, 9 paraprofessionals, 4 office staff, and 5 executive members, with a 2% inflation adjustment for cost of living.

QBE funding is anticipated to comprise 74% of our revenue, a significant increase from 43% in the 2023-2024 budget. However, we expect fundraising and grants to decrease by 31%, which is 7% of our revenue for 2024-2025. Expense distribution remains consistent across different categories, with a 6% reduction in Property Services costs, which have been reallocated to Supplies and Professional Services.

Summary of Back Office Provider and External CFO relationship

Finance committee has reflected on our first year of operation. 

Various challenges affected funding since opening in August

• Construction delays
• Reduced student population
• Higher than anticipated SPED needs

Managed to stay cash flow positive with support of Sarah, her team and external resources

 
EdTec selected as our back office provider and external CFO based on numerous referrals and high praise from other schools

    Not meeting expectations in the following ways:  

• Consistently late with deliverables
• Inaccessible for questions
• Multiple staff turnovers
• Failed on multiple occassions to proactively address foreseeable issues

As a result of EdTec not fully meeting Sankofa's needs, Sarah engaged Purpose Capital, an external consultant, to gain a better understanding of our cash position and projections.

Purpose Capital, founded by Candace Ramsey-Brown, has been assisting Sarah since October 2023. Their support has been crucial in maintaining our financial stability.   Additionally, Purpose Capital offers back-office support and external CFO services for a fixed fee. These services encompass bookkeeping, audit support, accounts payable, payroll, budgeting and forecasting, grant management, and monthly financial reporting. These offerings mirror the services provided under our current contract with Edtec.  As we enter our second year, Purpose Capital will charge a fixed monthly fee of $8,000 for 2024-2025, with tiered rates as the school grows and matures. Engaging Purpose Capital will save Sankofa Montessori $1,800+ per month compared to Edtec's percentage-based fees.

The finance committee recommends terminating our contract with Edtec, effective June 30, 2024, and entering into an annual contract with Purpose Capital to serve as our back-office provider and external chief financial officer. 

Updating plan based on enrollment numbers Sarah provided for the next 5-6 years

   Will meet with architect and contractor to revise plans based on new numbers provided

Parking lot renovations will take place before school starts

Ended school year May 24-end of Year 1

Will have time to reflect with team on Friday about the past year

Leadership Team Retreat begins next week (June 4-6)

Teachers want more support--thinking about consultants to provide instructional support

  Cannot use CSP grant funds to salaries but may be able to tap into this resource to get additional support for the teachers going into the next year.

Will have more reflections at the June Board meeting. 

Enrollment Update

246 enrolled-waitlist in place

   in better position than last year 

Errika: Congratulations on Bridging Ceremony!

  Question about whether parent survey went out

  Sarah shared it in the State of the School address

  Over half of the parents took the survey, so that provides helpful data

   Overall parents are satisfied with the child's experience 

Make sure you have all of your governance hours for SCSC compliance.  If not, please check in with Kim to make arrangements for completing hours.

Reminder to get your donations in before June 30

School closed June 17-28.