William VanHook:

At 1/3 of the year, Salary, bonuses & expenditures appear to be running a little higher than the expected trend. 

i.e. custodian = 59% used so far this year.

i.e. Administrative staff: some items paid that were not in original budget. Somewhat offset by teacher movement.

Result: projected deficit is up to 85k

Josh Morgan:

Travis & he are working on this

i.e. one teacher leaving end of 2025, not replaced.

i.e. one teacher moving to part time, not replaced.

i.e. a teacher on maternity leave's salary was not recouped once they return.

William VanHook: 

Will work with Travis to update regarding these three items.

Travis Gresham:

Question about custodial: contract with NightStaff is under facilities, not custodial

William VanHook:

4 staff members are considered custodial, and if any one or more of them need to be under a different line item, let him know.

Ben Weimar:

Confirmed: Daytime crew = 4 custodial staff

Night crew is a contracted service, not considered custodial.

William VanHook:

Brought up coverage ratio:

1.04 ratio is expected by the end of the year, but 1.10 is the goal.

 (see next item in minutes for more info)

Josh Morgan:

Meeting with William, Zach &   to ensure we're in the right place with the bond covenant expectations.

Also, the additional funds to be made by investing funds in a higher-yielding savings will make a difference.

Finally, we've suspended some field work, which are budgeted.

Additionally, continuing to make staffing adjustments as available.

Travis Gresham:

We've not received Medicaid reimbursements either, and will once NC budget is passed.

William VanHook:

His team is working tirelessly to ensure our forecasts are as accurate as possible and will continue to do so.

Josh Morgan:

Appreciates William & Christy's work as well as the work of CSP as a whole, for working with us,, supporting us.

Ben Weimar:

We're in process of applying for federal free and reduced lunch program, and if approved, will be able to receive reimbursement for funds expended to date on Nutrition & Food line item. (~106k so far). This may take place as early as January.

Coverage Ratio:

What is it measuring?

2 oomponents

1. Days cash on hand = If all funding shut down tomorrow, how many days can we continue operations with the cash on hand. Goal = at least 40 days.

2. Coverage Ratio = At least 1.10 of our net operations could cover our debt service. 

Net income + Depreciation + Interest Expense / Annual principal and interest payments

Multiple people are working on different pieces of the puzzle to build an accurate picture of the Dellwood campus, and as they make their analysis, let admin collect the data, present to us, and we'll make the decision based on that point.