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Alma del Mar

Finance Committee Meeting

Published on August 20, 2020 at 10:45 AM EDT
Amended on August 20, 2020 at 11:55 AM EDT

Date and Time

Friday August 21, 2020 at 11:00 AM EDT
Christine Fisher is inviting you to a scheduled Zoom meeting.

Topic: Finance Committee
Time: Aug 21, 2020 11:00 AM Eastern Time (US and Canada)

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Meeting ID: 883 4922 0364
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Meeting ID: 883 4922 0364
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Agenda

     
I. Opening Items
  A. Record Attendance
  B. Call the Meeting to Order
  C. Approve Minutes
    Approve minutes for Finance Committee Meeting on June 19, 2020
II. Finance
  A. FY20 Year End Financials
   
FY20 Operating Surplus (before Deferred Rent transaction) is $692k, which is $337k higher than budgeted.  This surplus is due to an increase in nutrition revenue for food service activities post COVID19, an increase in private funding due to COVID19 relief funds, and a decrease in expenses related to the closure of the School in March.  
  B. Private Funding Gap & EFF Closing
   
Impact Campaign Update:
As of June 30, 2020, the Impact Campaign Revenue totaled $3,236,860 with $2,450,260 of the donations received in cash and $786,600 outstanding in pledges.  Of the donations received in cash, $2,420,779 has been spent on the construction project, QALICB II formation, Kempton predevelopment and salaries related to the expansion of the School which leave $816,081 of cash on had at the end of FY20.

 

Construction Budget and Funding Gap:
The estimated construction budget totals $24,867,845.  The Foundation has put in $1,601,565 of the above referenced donations into the project as of the end of June 2020 and has $816,081 of cash on hand and incoming pledge payments of $850,000 expected to be received before the loan closing with EFF.  The Equity in Project + Cash on Hand + Incoming Pledges + EFF Loan proceeds = $24,267,646 which is $600,199 short of the Total Project Cost.  EFF requires that the total project is funded with cash on hand and loan proceeds at the closing.  In order to avoid applying for a bridge loan with Boston Private Bank to fund this $600k gap, the School should consider contributing some of FY20 surplus funds to the Foundation for the Project.  

 

 
  C. Proposal of Contributing FY20 Surplus to Project
   
Due to the school closure, the school incurred less expenses and had an increase in food service revenue due to the changes in reimbursement rates post COVID19, and also had an increase in private funding due to COVID19 relief funds.  This resulted in a larger than budgeted surplus.   The surplus results in a 1.84 DSCR which is well above the 1.2 covenant requirement. 

 

Proposing that the School contribute $300k to the Foundation for the Douglass Campus construction project which will help alleviate any cash equity gap at the loan closing.  After the contribution, the DSCR would be 1.37.
  D. COVID19 Federal/State Grants Funding
   
The School has received several grants in FY21 due to COVID19 that were not included in the operating budget.  Below is a summary of allocations and allotments:
Grant 102-$225 per Scholar
Total=$146,925
This grant will fund the following:  Chromebook Protective Bags, PPE & Cleaning Supplies, Additional Cleaning Services, Isolation Room Supplies, Plexi glass Install, SPED Summer Contracted Services, and Tents/Furniture for outdoor learning on the field.                          
CARES Grant
Total=$270,459
This grant will fund salaries for guidance counselors and paraprofessionals, cleaning services, and Chromebook charging carts.
Remote Technology Grant
Total=$43,760
This grant will fund Chromebooks for scholars.

 

 
III. Other Business
IV. Closing Items
  A. Adjourn Meeting