• Cash balances are available for both the School and the Foundation as well as a summary of year-to-date revenue and expenses for the School including projections. Overall the School will see a surplus at year end. Breakdown below:
  • General/Operating Fund: We are currently projecting a year end surplus of $379K largely from an increase in FEFP revenue. We had been accruing based on 570 FTE, the state numbers came back with 582 FTE. This results in +$416K in FEFP.
  • Capital Outlay: Tracking a surplus at year end here as well of $268K, (which was budgeted/expected). We could move some recurring maintenance/operating expenses here to increase the General Fund surplus.
  • Internal Fund: This fund is the Athletic/Extra Curricular activities, which was budgeted with a deficit. It’s still trending to show a year end deficit, however larger than expected at $344K. When you combine this funds deficit with the Gen/Opr surplus the outcome is very close to breakeven with a $35K surplus. This area should be looked at closely to ensure funds are being recouped where expected for trips/activities.
  • Debt: This fund is also tracking a surplus of $1,159,133 for current year due to several factors.
    • Some expenses were borrowed for, but expected to be reimbursed by Triumph, others reimbursed by General Appropriation therefore those expenses are recorded in separate funds where the expected reimbursement revenue is received – thus lowering construction expense.
    • An SNH invoice was borrowed for and paid, then a credit received for recurring monthly tech maintenance charges (general fund); revenues higher than construction expenses.
    • A TurnerBoone invoice was borrowed for in full, then paid a partial balance, two separate times, with one to be reimbursed by Triumph. However, the total of the payments made does not total the amount borrowed; excess of $30K.
• Triumph: a conversation was had with Tricia about the challenges of gaining approval of all submitted data. At this time in our projections, we are not expecting any reimbursements in current year, this is the most conservative review of the cash flow. Current receivable is $541K, made up largely of salaries and will grow with each month’s payroll. Of the $1 mil budgeted for Triumph to reimburse this year, 64% is related to staff positions. We are assuming right now that the board approved budget for Triumph is what will be followed and reimbursed just delaying the cash until next fiscal year.

Cash Flow/Projections

• Watching cash throughout the remainder of the year we are seeing a dip in cash from now to Jun 30, due to the delay of Triumph reimbursement, however with the inflow of LCIR this month there is no concern of lack of cash when needed.
• Further we do expect that the cash on hand requirement will be met at year end; current projection expected to be 99 days at Jun 30. Reminder these ratios are calculated combined with the Foundation activity.
• Within the cash flow tab, you can identify detailed year to date activity separated by funds including future projections. This is where the calculations are made for the loan requirements as well as other analysis to ensure that the school is on track financially.

Debt Service Coverage Ratio

• Right now, we’re optimistic that this requirement will be met, however current projections are slightly below where it needs to be at year end. I have a conversation scheduled with the Foundation team to confirm some financial pieces from their side to better ensure our calculations.

Foundation Updates

15-year fixed rate (maturity) with 30-year amortization. First three years are interest-only. 5.11%

Financing Agreement (Sec 2.07) p. 21&22

“If an optional redemption of the Series 2024 Bond in an amount equal to or greater than $2,500,000 is made during any calendar year,

the Borrower may request and the Lender will re-amortize the remaining principal payments

due on the Series 2024 Bond. Any such re-amortization shall occur no more frequently than

once every three (3) Fiscal Years of the Borrower and not more than twice over the term of the

Series 2024 Bond. The Borrower shall notify the Lender fifteen (15) days prior to such redemption.”