special giving section – fiscal year 2019
An Update from Chief Financial Officer, David Brown
We have closed the books on a successful fiscal year 2019, which ended June 30, and completed our annual audit. Total net assets grew by 14% to $9.5 million. The community’s rallying behind the new Fund for Financial Aid was the biggest driver, increasing donor restricted net assets by 137% – amazing! Long term financial sustainability is my highest goal and we continue to make great progress on improving the balance sheet and building reserves. Along with the Fund for Financial Aid, the Board designated two other balance sheet reserve funds that reflect our maturing balance sheet. A Board designated reserve fund (a “rainy day” fund) was established at $658,000, reflecting the budgeted addition to reserves over the last several years. Funds will continue to be budgeted for this reserve each year offering financial protection to the school in the event of unforeseen events. A PRRSM fund (this one’s a mouthful—Plant Repair, Replacement and Special Maintenance Fund, generally pronounced like “prism”) was established with an initial balance of $28,200. This fund will be budgeted to grow over the coming years with a goal of creating a fund balance sufficient to properly maintain the current campus infrastructure. Operating budgets for the current 2019-2020 school year allow for spending of $11.4MM, including debt carrying costs. Our costs are mainly for people with $8.6
30
million allocated for salaries, benefits, payroll taxes, and professional development. About $600 thousand will be spent for rent of the campus and other facility expenses. Net tuition revenue is budgeted at $10.4 million. We need the annual fund gifts and other PA contributions (auction and others), along with the ancillary aftercare and LEC program revenue to cover our expenses and build our balance sheet. Your generous gifts to these campaigns help MP&MS meet our mission and goals for improving our program. As we look ahead to the school’s future, we know that the generous support of our entire community will continue to play an important role. Gifts from our charitable donors are essential to the exceptional programs and singular atmosphere at MP&MS. The contributions made today will have an invaluable and lasting impact on MP&MS for years to come.
Reserve Funds-June 30, 2019 Board Designated Reserve Account
$658,000
PRRSM Fund
$28,200
Fund for Financial Aid
$450,828
Endowment
$123,547
Other Donor Restricted Funds
$224,304
Annual Fund - June 30, 2019 Unrestricted Annual Fund
$795,123
Auction Net (not including Paddle Raise)
$125,538
