• I am projecting FEFP based off a reduced FTE from the budget of 440 to allow for the historic attrition related to classes taken at South Walton. (2%).
  • The District will continue to pay on 399 FTE until January or February after the state-wide count is finalized. This will cause a Receivable to build on the Balance Sheet until the district updates their student count.
  • A draw from Foundation is to be expected before the end of the 1st semester due to this temporary short payment in cash. Operating cash balance reflected on these statements is $211K. Today the Operating balance sits at $489K; the district processes the monthly FEFP payments early in the month; late in the month the once monthly payroll is processed causing the low balance at month end.
  • We had discussed moving funds from the Internal account on the last call; would you all like to make this move prior to the end of the semester in preparation for the bi-annual payments for SRO, College Tuition, FLVS Tuition & College Textbooks? These payments together could be $258K based off the budgets and could all come due prior to Christmas or shortly after depending on receipt. My expectation is the district will not have recognized the FTE by this point; therefore not adjusted the monthly payment. My recommendation is to leave a balance of $30-50K in the Internal account and transfer the remainder to the Operating account. We could do this again around the first week of June once all activities have concluded for the year. This would transfer $88K to the Operating account now. If you’d like we can request ½ of the Foundation Transfer budgeted - $130K. This makes up $218K of the estimated $258K due on the above mentioned upcoming payables. We can discuss further on the call next week.
• I am accruing the School’s allocation of LCIR, however the District is not required to begin making payments until Feb 1. The receivable will continue to build until the District starts paying this. This is another reason the cash balance will be sensitive for several months.
• Tom, Tricia and I are together working through the ESSER reimbursements with the district. This will be ongoing throughout the year as the expenses occur. As I invoice the expense, I’ll record the expectation of revenue to be received. This month you will see a Receivable of $115K from this activity. I expect payment for this by the end of November.
• The District has reached out to start the conversation about the General Appropriations expected of $9 million; we are currently trying to coordinate that date/time for the initial conversation.

New Employee: Operation of Plant and Bus Driver

FT Position, 12 months ($48,000).

We budgeted $29,000 for this position and with seven checks (December  - June) we will stay under budget for this year. 

New Positions in consideration: 

Testing Coordinator ($3,000 per month through June 2024)

MTSS Coordinator (Possible combined position)

Registrar (Looking to make a 10 month position 12 + $7,000)

Budget Amendments: 

Substitute Teacher Line Item (Budgeted $39,000 spent $17,000 so far) 

Marketing Dollars (Need $7,500 for physical and social advertising)

Reduction:

Textbooks (Budgeted $160,000 - Actual Need being evaluated (Think $100,000)

1. Regional banks:
   1. Hancock – received updated term sheet Friday, have follow up call this week.  Attached are most recent terms;

                                                               i.      10MM Construction to perm

1. 6.93% with no pre-payment, 6.64% with 
2. .25% origination
3. 20 year amortization

                                                             ii.      9MM Additional Bridge loan

1. 6.93% with no pre-payment, 6.64% with  
2. .25% origination
3. 12 month interest only
4. Cadence – have follow up call this week for terms
5. UCB/Progress – have follow up call this week for terms
6. Roundtable:
   1. We’ve agreed to move forward with their underwriter for a contingent fee
   2. I intend to reach out to Clint to receive and updated SOW and exclude our regional bank relationships
   3. No terms yet, we’ve been given a range starting in low 6’s
7. Building Hope, Rich Moreno:
   1. This is a new relationship, introduced by Tucker Brooks via a Charter School consultant/lobbyist.
   2. Rich is a FL resident, and knows many of the Tallahassee lobbyists, including Jim Thorpe that assisted in LCIR discussions
   3. We would still need to engage an underwriter similar to RT with a contingent fee
   4. Rich felt we could get financing done in 60 days
   5. Building Hope Fee - .35 BPS – awaiting full breakdown of fees and copy of contract
   6. Tax rates of high 4’s to mid 5’s for tax exempt (low 5’s attached for illustration purposes)

Next steps:

• Talk to Wharton Smith about navigating material purchases or reduced uses until additional sources can be secured
• Get underwriting approval, and term sheets for consideration (aiming for December board meetings)
• Determine our school threshold for debt service coverage

(Click Here)

The development committee reviewed a potential policy for expenditures. 

Note, the school's policy manual has a section on purchasing (click here) at the top of page 21. 

The leadership team is currently vetting programs, resources, training and technology requested by the teachers. 

These items are within the scope of the budget in these line items:

- Technology Devices and Equipment

- Technology Software

- Instructional Materials

Click here

Other items being vetted: 

Tent Repair (could be $8,500 to replace) We are checking on the insurance coverage. 

Internet separation: Both schools are under one internet server. Quotes came in for $4,500 and $63,000 to make changes. 

Hawkeye Security: 

Goal: Work with foundation to diversify fundraising by implementing 2 additional revenue
streams (e.g., booster club, summer camps)

Sponsorship on school web page:

- We created a new "Join Our Team Page". I had a thought about selling sponsorship on our page for realtor, loan companies, short/long term rentals

https://www.seasideschools.net/about/human-resources 

- Recommend that we look to hire a grant writer to search and work towards large grant opportunities around the expansions.

SHS - which is hired to do our tech audit, send this over. This is a role I need to identify internally to keep the eye out to what is possible (click here)

Grants folder (Click here)

We have $20,000 in a "consultant" line item. I can use these funds to get us started. 

We are working with the Development Committee on obtaining a three to five year plan for technology, instructional tools, and facility improvements. 

The Finance Team completed the internal controls assessment (Click here).

Here were the immediate identified weaknesses (Click here)

• Assets Inventories/Physical Counts of Assets
• Two signatures on Checks Policy over a certain amount
• Systems for checking balances before ordering
• Cash handling

Page 19-21 has a couple of Finance Policies around spending and check signing. But nothing around what size check warrants two signatures (Click here)