APPENDIX B FINANCIAL PERFORMANCE AND EVALUATION

San Tan Montessori School, Inc. Financial Performance Response 

   

The two sustainability measures that are not meeting are Net Income and Fixed Charge Coverage Ratio.  As evidenced in the attached 2017 and 2018 audited Statement of Activities, a significant contributor to both of these measures is interest expense.    Further, as evidenced in the attached flow of funds from our Bond trustee, interest payments for our new 2017 bond issue began well before the corresponding revenue for our enrollment growth took effect.  The bond interest for the new 2017 Bond issued in December, 2017 began February, 2018.  The new campus was not occupied or open to students until the new fiscal year began, August, 2018.  The burden of the new interest payment was not something we budgeted for as we were under the impression the new bond interest wouldn’t begin until the new fiscal year began.  A projection document was quickly created to ensure our metrics are within range for the current fiscal year.   

Long Name: The Industrial Development Authority of the County of Pima Education Facility RevenueBonds (San Tan Montessori School Project) Series 2014A and Taxable Series 2014B AND Series 2016 Send email with worksheets to:2nd Supplemental Isue - San Tan Montesori Series 2017 Kris Sippel ksippel@santancs.com

Barbara Wahlman bawahlman@santancs.comFrequency: Monthly within two Business Day of Trustee's receipt of State Payments (are usually received around the 1st of the month)Monthly Disb Date 02/01/19

Document Citation: Trust Indenture 3.24 CTD # 78539Purpose: Allocate funds collected in Revenue Fund in priority specified in Indenture until each fund requirement is met. The funding requirements of each fund (including

the making up of any deficiencies in any such fund resulting from lack of Revenues) shall be satisfied before any transfer is made to any fund subsequent in priority.

RUNNING DEPOSITS AND TRANSFERS TO THE REVENUE FUND CUMULATIVE MONTHLY TOTAL OF

REQUIRED TRANSFERS REVENUE FDState Payments received monthly 578,129.71$

Revenue Fund Balance -$ Other Misc. Receipts, Adjustments: -$

Total Revenues 578,129.71$ $578,129.71

DISBURSEMENTS AND TRANSFERS FROM THE REVENUE FUND MONTHLY DEPOSITS REQUIRED1) Bond Fund Credit for funds 2/1 & 8/1

Interest due Series 2014A 8/1/2019 522,300.00$ 26,051.75$ Divided by 6 82,708.04$ -$ 93,958.04$ $484,171.67 Principal due Series 2014A 2/1/2020 135,000.00$ -$ Divided by 12 11,250.00$

Interest due Series 2016 8/1/2019 149,500.00$ -$ Divided by 6 24,916.67$ -$ 24,916.67$ $459,255.00 Principal due Series 2016 2/1/2045 -$ Divided by 12 -$ Interest due Series 2017 8/1/2019 635,753.13$ 19,461.55$ Divided by 6 102,715.26$ -$ 114,798.60$ $344,456.41

Principal due Series 2017 2/1/2020 145,000.00$ Divided by 12 12,083.33$ 2) Debt Service Reserve Fund amount necessary to cure any deficiency -$ Divided by -$ -$ $344,456.41

-$ $344,456.41

3) Tax and Insurance Escrow Fund 1/12 of taxes due -$ Divided by 12 -$ 1/12 of Insurance Premium for such calendar year -$ Divided by 12 -$ -$ -$ $344,456.41

4) Rebate Fund # Following determination of Rebate Amount and continuing until the full amount is paid as calculated by the the Rebate Analyst -$ Divided by 12 -$ -$ -$ $344,456.41

5) Expense Fund Trustee's Fees PAYABLE 2/1 & 8/1 Series 2014 1,250.00$ Divided by 6 208.33$ -$ 354.17$ $344,102.24 Trustee's Fees PAYABLE 2/1 & 8/1 Series 2016 875.00$ Divided by 6 145.83$ -$ 145.83$ $343,956.41 Trustee's Fees PAYABLE 2/1 & 8/1 Series 2017 875.00$ Divided by 6 145.83$

6) Expense Fund Issuer's Fee PAYABLE 01/01 & 07/01 8,757.50$ Divided by 6 1,459.58$ -$ 1,459.58$ $342,496.82 Issuer's Fee Series 2017 PAYABLE 01/01 & 07/01 9,497.50$ Divided by 6 1,582.92$ -$ 1,582.92$ $340,913.91

Rebate Analyst Fee, if applicable, PAYABLE 02/01 3,000.00$ Divided by 12 250.00$ -$ 250.00$ $340,663.91 Rebate Analyst Fee, if applicable, PAYABLE 02/01 1,500.00$ Divided by 12 125.00$ -$ 125.00$ $340,538.91

Program Administrator's Fee PAYABLE 02/01 Series 2014 4,000.00$ Divided by 12 333.33$ -$ 666.67$ $339,872.24 Program Administrator's Fee PAYABLE 02/01 Series 2016 4,000.00$ Divided by 12 333.33$ -$ 250.00$ $339,622.24 Program Administrator's Fee PAYABLE 02/01 Series 2017 3,000.00$ Divided by 12 250.00$

Program Administrator's Monthly Fee Series 2017 (until Completion Date) 184.59$ -$ 184.59$ $339,437.65

7) Operating Reserve Fund amount necessary to cure any deficiency -$ Divided by 12 -$ -$ -$ $339,437.65

8) Loan Payment to Community Investment Corporation 2,313.00$ 2,313.00$ $337,124.65

9) All funds remaining to Borrower (if not in Default) $337,124.65

** Issuer's Fee of .001 on original principal amount of Series of Bonds PAYABLE TOAUTHORITY semi-annually 01/01 and 07/01 beginning 07/01/14

Flow of Funds:

Annual Semi-Annual2014 Original Bonds Issued 12,915,000.00$ 12,915.00$ 6,457.50$ 2016 Original Bonds Issued 4,600,000.00$ 4,600.00$ 2,300.00$ 2017 Original Bonds Issued 18,995,000.00$ 18,995.00$ 9,497.50$

Program Administrator Fee of 0.0166 percent of Project Fund balance on 1st buisness day of the month payable to CIC monthly

1,111,975.67$ 184.59$

Long Name: The Industrial Development Authority of the County of Pima Education Facility RevenueBonds (San Tan Montessori School Project) Series 2014A and Taxable Series 2014B AND Series 2016 Send email with worksheets to: 480-222-08112nd Supplemental Isue - San Tan Montesori Series 2017 Kris Sippel ksippel@santancs.com

Barbara Wahlman bawahlman@santancs.comFrequency: Monthly within two Business Day of Trustee's receipt of State Payments (are usually received around the 1st of the month)Monthly Disb Date 01/01/18Account Number: 82-9343Document Citation: Trust Indenture 3.24 AZ State Treasurer CTD #078539Purpose: Allocate funds collected in Revenue Fund in priority specified in Indenture until each fund requirement is met. The funding requirements of each fund (including

the making up of any deficiencies in any such fund resulting from lack of Revenues) shall be satisfied before any transfer is made to any fund subsequent in priority.

RUNNING DEPOSITS AND TRANSFERS TO THE REVENUE FUND CUMULATIVE MONTHLY TOTAL OF

REQUIRED TRANSFERS REVENUE FDState Payments received monthly 461,836.00$

Revenue Fund Balance 82-9343-011 6.00$ Other Misc. Receipts, Adjustments: -$

Total Revenues 461,842.00$ $461,842.00

DISBURSEMENTS AND TRANSFERS FROM THE REVENUE FUND MONTHLY DEPOSITS REQUIRED1) Bond Fund 82-9343-029 (2014/2016) 82-2593-026 (2017)

Interest due Series 2014A 2/1/2018 531,300.00$ -$ Divided by 6 88,550.00$ -$ 98,133.33$ $363,708.67 Principal due Series 2014A 2/1/2018 115,000.00$ -$ Divided by 12 9,583.33$

Interest due Series 2016 2/1/2018 149,500.00$ -$ Divided by 6 24,916.67$ -$ 24,916.67$ $338,792.00 Principal due Series 2016 2/1/2045 -$ Divided by 12 -$ Interest due Series 2017 2/1/2018 116,554.74$ Divided by 6 -$ -$ -$ $338,792.00

Principal due Series 2017 2/1/2020 -$ Divided by 12 -$ 2) Debt Service Reserve Fund 82-9343-037 (2014/2016) 822593034 (2017) amount necessary to cure any deficiency -$ Divided by -$ -$ -$ $338,792.00

3) Tax and Insurance Escrow Fund 82-9343-045 (2014/2016) 1/12 of taxes due -$ Divided by 12 -$ 1/12 of Insurance Premium for such calendar year -$ Divided by 12 -$ -$ -$ $338,792.00

4) Rebate Fund # Following determination of Rebate Amount and continuing until the full amount is paid as calculated by the the Rebate Analyst -$ Divided by 12 -$ -$ -$ $338,792.00

5) Expense Fund 82-9343-052 (2014/2016) 82-2593-042 (2017) Trustee's Fees PAYABLE 2/1 & 8/1 Series 2014 1,250.00$ Divided by 6 208.33$ -$ 354.17$ $338,437.83 Trustee's Fees PAYABLE 2/1 & 8/1 Series 2016 875.00$ Divided by 6 145.83$ -$ -$ $338,437.83 Trustee's Fees PAYABLE 2/1 & 8/1 Series 2017 875.00$ Divided by 6 -$

6) Expense Fund 82-9343-052 (2014/2016) 82-2593-042 (2017) Issuer's Fee PAYABLE 01/01 & 07/01 8,757.50$ Divided by 6 1,459.58$ -$ 1,459.58$ $336,978.25 Issuer's Fee Series 2017 PAYABLE 01/01 & 07/01 9,497.50$ Divided by 6 1,582.92$ -$ 1,582.92$ $335,395.33

Rebate Analyst Fee, if applicable, PAYABLE 02/01 3,000.00$ Divided by 12 250.00$ -$ 250.00$ $335,145.33 Rebate Analyst Fee, if applicable, PAYABLE 02/01 1,500.00$ Divided by 12 125.00$ -$ 125.00$ $335,020.33

Program Administrator's Fee PAYABLE 02/01 Series 2014 4,000.00$ Divided by 12 333.33$ -$ 666.67$ $334,353.67 Program Administrator's Fee PAYABLE 02/01 Series 2016 4,000.00$ Divided by 12 333.33$ -$ 333.33$ $334,020.33 Program Administrator's Fee PAYABLE 02/01 Series 2017 4,000.00$ Divided by 12 333.33$

Program Administrator's Monthly Fee Series 2017 (until Completion Date) 1,921.42$ -$ 1,921.42$ $332,098.91

7) Operating Reserve Fund 82-9343-060 amount necessary to cure any deficiency 260,132.87$ Divided by 12 -$ 15,000.00$ 15,000.00$ $317,098.91

8) All funds remaining to Borrower (if not in Default) $317,098.91

** Issuer's Fee of .001 on original principal amount of Series of Bonds PAYABLE TO 01/01/18 Borrower: MidFirst BankAUTHORITY semi-annually 01/01 and 07/01 beginning 07/01/14 Wire ABA: 303087995

Annual Semi-Annual ABA# 1221874452014 Original Bonds Issued 12,915,000.00$ 12,915.00$ 6,457.50$ Account # 21830069232016 Original Bonds Issued 4,600,000.00$ 4,600.00$ 2,300.00$ FBO: San Tan Montessori2017 Original Bonds Issued 18,995,000.00$ 18,995.00$ 9,497.50$ Description: Monthly Distribution

Flow of Funds:

Student Enrollment 0 991 992 996 994 1000 1000 1000 1000 1000 1000 1000ADM 0 982.5 1011.5 959.5 951.209 947.857 950.502 960 960 960 960 960state aid per adm 597.32$ 654.43$ 562.01$ 589.16$ 629.02$ 617.06$ 610.96$ 610.96$ 610.96$ 610.96$ 1,249.11$

Actual Actual Actual Actual Actual Actual Projected Projected Projected Projected Projected ProjectedJul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19

Revenue:State aid $615.57/ADM 586,868 661,960 539,247 560,417 596,224 586,520 586,520 586,520 586,520 586,520 1,199,143Proposition 123 21,510 18,000Classroom Site Fund $38/ADM 0 42,905 0 81,116 39,506 41,102 40,000 40,000 40,000 40,000 40,000 89,702Instructional Improvement $44/ADM/YR 0Federal & State Grants 0 21,510 29,490 50,000 50,000 40,000After School Care/Field Trips 0 3,355 15,418 13,595 5,299 9,327School Lunches 4,340 5,852 4,095 5,469 3,480 4,260 5,000 5,000 5,000 5,000 5,000Fundraising 300 6,568 140 178 7,500All Day Kinder Fee 900 10,800 8,550 10,940 9,875 8,800 9,600 9,600 9,600 9,600 9,600School Activities 24,378 70,139 16,611 22,194 17,966 13,748 10,000License FeesDonations/Contributions 300 2,210 29,859 3,707 15,892 8,000 19,460 14,000 4,990 15,400 0 0Preschool 0 0 1,920 0 0 2,500 2,500 2,500 2,500 2,500 2,500Total Revenue 30,218 722,129 744,980 676,408 652,436 724,660 710,070 707,620 698,610 717,020 643,620 1,291,345

Expenses:Compensation and related expenses 146,530 411,443 405,171 391,059 390,331 397,141 395,000 395,000 395,000 395,000 395,000 655,000Purchase services 87,036 99,082 122,556 60,025 70,370 65,653 76,500 76,500 76,500 76,500 76,500 76,500Supplies & instructional aides 108,827 59,511 48,930 41,915 57,469 19,600 35,000 35,000 35,000 35,000 35,000 35,000Transfers/Reimb from Bond Funds -4,522 -1,690 -43,386Fees & Taxes 6,549 3,980 4,159 5,607 3,169 1,057Interest Income Bonds/Misc Interest Expense -13,716 -24,818 7,004 -6,231 -8,264 -70,585 -5,000 -5,000 -5,000 -3,000 -3,000 -3,000CIC Loan Payoff 2,313 2,313 2,313 2,313 2,313 2,313 2,313 2,313 2,313 2,313 2,313 2,313Principal Payments on Leases 875 875 875 875 875 875 875 875 875 875 875 875Other Expenses/Adj for Outstanding AP -72,088 23,125 -25,387 6,087 62,593 118,583 -11,185Operating Reserve Fund**assumes 60 day**Bond Fees 5,916 5,749 5,479 5,274 5,162 5,080 5,200 5,200 5,200 5,200 5,200 10,400Interest Expense on series 2014 bonds 87,347 87,347 87,347 87,347 87,347 87,347 87,347 87,347 87,347 87,347 174,693Principal Payments on series 2014 bonds 10,417 10,417 10,417 10,417 10,417 10,417 10,417 10,417 10,417 10,417 20,833Interest Expense on series 2016 bonds 24,917 24,917 24,917 24,917 24,917 24,917 24,917 24,917 24,917 24,917 49,833Interest Expense on series 2017 bonds 105,315 105,315 105,315 105,315 105,315 105,315 105,315 105,315 105,315 105,315 210,630Total Expenses 267,720 809,255 797,404 734,919 768,627 767,711 737,883 737,883 726,698 739,883 739,883 1,233,078

Net Gain (Loss) -237,502 -87,126 -52,424 -58,511 -116,192 -43,051 -27,813 -30,263 -28,088 -22,863 -96,263 58,267

San Tan Montessori School, Inc

FY 2018-19 Monthly Cash Flow AnalysisHybrid Model

San Tan Montessori School, Inc.

Supplemental Response to Financial Performance Evaluation Submitted 3/12/19

Thank you for the opportunity to provide a supplemental response and additional supporting materials to our original submission. The information below and attached is intended to clarify why San Tan Montessori, Inc. did not meet certain Arizona State Board for Charter Schools’ (ASBCS) financial measures in FY18 and provide support of its ability to do so in the future.

Net Income - Why Did the School Not Meet the Net Income Measure? According to the FY 18 financial statements, San Tan had a net loss of $321,417 which resulted in the school not meeting the ASBCS’ net income measure of positive $1. The school received proceeds from its 2017 series bonds in December 2017 (see note 5 FY 2018 audited financial statements- Exhibit 4) to fund the construction of its high school which was to begin operation in the fall of 2018. The primary reason for the school incurring a net loss for FY 2018 can be attributed to the timing of when the school incurred the additional interest expense of the new bond (in FY 18) and the opening of its high school (in FY 2019). Because the school did not open until the year after the interest expense was incurred, it did not have the additional revenue (as a result of additional students) to offset this new expense. As indicated in the FY 2018 audited financial statements Exhibit 4, page 11, the school incurred interest expense from the IDA promissory notes of $2,038,751. According to the FY 2017 audited financial statements Exhibit 3 page 11, interest for the prior year was $1,354,645. This is an increase from FY 2017 to FY 2018 of $684,106. Fixed Charge Ratio – Why Did the School Not Meet this Measure? The fixed charge coverage ratio on the school’s financial dashboard indicates a .90 coverage which does not meet the Board’s standard of 1.1. Because this measure is directly impacted by net income, the reason(s) for not meeting this standard are the same as not meeting the net income standard and are discussed in the paragraph above. Moving Forward – What Has The School Done to Meet The Measures In the Future? San Tan Montessori opened its high school in the fall of 2018 (FY 2019) putting it in a better position to manage the debt associated with its new building due to the additional revenue generated by its high school students. However, it will not reach sufficient average daily membership (adm) in FY 19 to offset all of the additional costs associated with the new bond. The school anticipates a continued net loss in FY 19 (see Exhibit 1 - Financial Forecast). Accordingly, the school is also forecasted to not meet the fixed charge coverage ratio of 1.1 this school year. However, based on trending of current enrollment numbers for next year, the school is forecasted to have a positive net income in fiscal year 2020 (see Exhibit 1 Financial Forecast). This forecast assumes the school will have an adm of 1137 in FY 2020. As can be seen in Exhibit 5, the school currently has 1132 students registered (1084 adm with kindergarten students cut in half). School management is confident it will add an additional 53 adm (to total 1137) by the time the FY 2020 school year begins. If for some reason it is not able to reach this adm, the school will cut teacher positions accordingly to bring its expenses in line with its revenue. Due to the forecasted net gain in FY 2020, it is anticipated that the school will also improve its fixed charge coverage ratio to meet the ASBCS’ 1.1 standard. This is demonstrated in Exhibit 2. Evidence/ Support

• FY 19 Forecast (Exhibit 1 Tab 1 top of page)

• FY 20 Forecast (Exhibit 1 Tab 1 bottom of page)

• Fixed Charge Ratio Coverage Forecast – Exhibit 2

• Audited Financial Statements FY 2017 – Exhibit 3

• Audited Financial Statements FY 2018 – Exhibit 4

• Email from Registrar re: FY 2020 Enrollment Exhibit 5

NOTES

Student Enrollment 0 991 992 996 994 1000 1000 1000 1000 1000 1000 1000 1000

ADM 0 982.5 1011.5 959.5 951.209 947.857 950.502 951.123 951.639 951.639 951.639 951.639 951.639 Per March 2019 CHAR-55

state aid per adm 597.32$ 654.43$ 562.01$ 589.16$ 629.02$ 617.06$ 616.66$ 616.33$ 616.33$ 616.33$ 1,239.35$ 7,415.34$

Actual Actual Actual Actual Actual Actual Projected Projected Projected Projected Projected Projected Projected

Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 FY19

Revenue:

State aid $615.57/ADM 586,868 661,960 539,247 560,417 596,224 586,520 586,520 586,520 586,520 586,520 1,179,411 7,056,727 FY19 per March 2019 CHAR-64

Proposition 123 21,510 18,000 39,510 Average based on prior year actuals

Classroom Site Fund $38/ADM 0 42,905 0 81,116 39,506 41,102 40,000 40,000 40,000 40,000 40,000 90,541 495,170 FY19 per March 2019 CSF-03

Instructional Improvement $44/ADM/YR 0 23,206 23,206 46,412 Feb actual per IIF-03-forecasted June as same

Federal & State Grants 0 21,853 29,490 50,000 50,000 40,000 191,343 FY19 per IDEA and Title Grant Budget per ADE

After School Care/Field Trips 0 3,355 15,418 13,595 5,299 9,327 46,994 Not forecasting

School Lunches 4,340 5,852 4,095 5,469 3,480 4,260 5,000 5,000 5,000 5,000 5,000 52,495 Average based on YTD actuals

Fundraising 300 6,568 140 178 7,500 14,687 Not forecasting

All Day Kinder Fee 900 10,800 8,550 10,940 9,875 8,800 9,600 9,600 9,600 9,600 9,600 97,865 Average based on YTD actuals

School Activities 24,378 70,139 16,623 22,194 17,966 13,728 10,000 175,028 Not forecasting

Donations/Contributions 300 2,210 29,859 3,707 15,892 8,400 19,460 14,000 4,990 15,400 0 0 114,217 Average based on YTD actuals

Preschool 0 0 1,920 0 0 2,500 2,500 2,500 2,500 2,500 2,500 16,920 Average based on prior year actuals

Total Revenue 30,218 722,129 744,992 676,408 652,436 725,383 710,070 730,826 698,610 717,020 643,620 1,295,658 8,347,369

Expenses:

Compensation and related expenses 146,530 411,443 405,171 391,059 390,331 397,141 395,000 395,000 395,000 395,000 395,000 655,000 4,771,676

Average based on Aug-Dec Actuals to avoid using July

which is an outlier

Purchase services 92,036 99,181 123,509 63,355 71,820 73,383 76,500 76,500 76,500 76,500 76,500 76,500 982,285

Average based on recurring future vendor costs to avoid

using outlier expenses in beginning of year when costs

tended to be higher due to start up of new campus

Supplies & instructional aides 110,955 59,511 53,732 42,432 71,280 21,838 23,000 23,000 23,000 23,000 23,000 23,000 497,749

Average based on decrease in future supplies cost to avoid

using outlier expenses in beginning of year when costs

tended to be higher due to start up of new campus

Fees & Taxes 6,549 3,980 4,159 5,607 3,257 1,057 2,000 2,000 2,000 2,000 2,000 2,000 36,608

Average based on review of future recurring fees and

taxes. Yearly subscriptions less than $1k are expensed in

the same month paid which is why you will see this

expense line higher at the beginning of the year

Interest Income Bonds/Misc Interest Expense -12,402 -24,818 7,004 -6,231 -8,264 -70,605 -115,316 Not forecasting

Depreciation/Amortization Expense 37,408 37,408 37,408 37,408 37,408 37,408 56,408 56,408 56,408 56,408 56,408 56,408 562,897

Increased Depreciation $20k for new Building completed

in Dec.

Bond Fees 5,916 5,749 5,479 5,274 5,162 5,080 5,200 5,200 5,200 5,200 5,200 5,200 63,859 Average based on YTD Actuals where no outliers exist

Interest Expense on series 2014 bonds 87,347 87,347 87,347 87,347 87,347 87,347 87,347 87,050 87,050 87,050 87,050 87,050 1,046,676 Per FY19 Amortization Schedule

Interest Expense on series 2016 bonds 24,917 24,917 24,917 24,917 24,917 24,917 24,917 24,917 24,917 24,917 24,917 24,917 299,000 Per FY19 Amortization Schedule

Interest Expense on series 2017 bonds 105,315 105,315 105,315 105,315 105,315 105,315 105,315 105,959 105,959 105,959 105,959 105,959 1,267,001 Per FY19 Amortization Schedule

Total Expenses 604,570 810,033 854,039 756,483 788,574 682,880 775,686 776,034 776,034 776,034 776,034 1,036,034 9,412,434

Net Gain (Loss) -574,352 -87,903 -109,047 -80,074 -136,138 42,502 -65,617 -45,208 -77,424 -59,014 -132,414 259,624 -1,065,064

San Tan Montessori School, Inc

FY 2018-19 Monthly Forecast

Accrual Basis

NOTES

Student Enrollment 0 0 0 0 0 0 0 0 0 0 0 0 0

ADM 1137 1137 1137 1137 1137 1137 1137 1137 1137 1137 1137 1137 1137

state aid per adm 627.88$ 627.88$ 627.88$ 627.88$ 627.88$ 627.88$ 627.88$ 627.88$ 627.88$ 627.88$ 1,255.76$ 7,534.56$

Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected

Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 FY20

Revenue:

State aid $627.88/ADM 713,900 713,900 713,900 713,900 713,900 713,900 713,900 713,900 713,900 713,900 1,427,799 8,566,795 2% Increase from FY19

Proposition 123 21,510 18,000 39,510 Same as FY19 Forecast

Classroom Site Fund $38/ADM 0 42,905 0 81,116 39,506 41,102 50,090 50,090 50,090 50,090 50,090 50,090 505,170 2% Increase from FY19

Instructional Improvement $44/ADM/YR 0 23,206 23,206 46,412 Same as FY19 Forecast

Federal & State Grants 0 21,853 29,490 50,000 50,000 40,000 191,343 Same as FY19 Forecast

After School Care/Field Trips 0 3,355 15,418 13,595 5,299 9,327 46,994 Same as FY19 Forecast

School Lunches 4,340 5,852 4,095 5,469 3,480 4,260 7,000 7,000 7,000 5,000 6,000 59,495 .6% of total Revenue per FY19 trends

Fundraising 300 6,568 140 178 7,500 14,687 Same as FY19 Forecast

All Day Kinder Fee 900 10,800 8,550 10,940 9,875 8,800 9,600 9,600 9,600 9,600 9,600 97,865 Same as FY19 Forecast

School Activities 24,378 70,139 16,623 22,194 17,966 13,728 10,000 175,028 Same as FY19 Forecast

Donations/Contributions 300 2,210 29,859 3,707 15,892 8,400 19,460 14,000 4,990 15,400 0 0 114,217 Same as FY19 Forecast

Preschool 0 0 1,920 0 0 2,500 2,500 2,500 2,500 2,500 2,500 16,920 Same as FY19 Forecast

Total Revenue 30,218 849,160 796,932 851,061 805,918 843,058 849,539 870,296 838,080 854,490 782,090 1,503,595 9,874,436

Expenses:

Compensation and related expenses 154,750 415,000 415,000 415,000 415,000 415,000 415,000 415,000 415,000 415,000 415,000 735,000 5,039,750

Added 6 new teachers at $40k/yr (inc benefits). Assume

freeze on raises until ADM reaches required numbers.

Purchase services 78,030 78,030 78,030 78,030 78,030 78,030 78,030 78,030 78,030 78,030 78,030 78,030 936,360 2% increase from FY19

Supplies & instructional aides 127,500 51,000 51,000 51,000 51,000 25,500 25,500 25,500 25,500 25,500 25,500 25,700 510,200 2% increase from FY19

Fees & Taxes 4,100 4,100 4,100 4,100 4,100 4,100 2,000 2,000 2,000 2,000 2,000 2,000 36,600 Same as FY19 Forecast

Depreciation/Amortization Expense 56,408 56,408 56,408 56,408 56,408 56,408 56,408 56,408 56,408 56,408 56,408 56,408 676,896 FY19 Average Jan19-June19

Bond Fees 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 62,400 FY19 Average Jan19-June19

Interest Expense on series 2014 bonds 87,050 87,050 87,050 87,050 87,050 87,050 87,050 86,206 86,206 86,206 86,206 86,206 1,040,381 Per FY20 Amortization Schedule

Interest Expense on series 2016 bonds 24,917 24,917 24,917 24,917 24,917 24,917 24,917 24,917 24,917 24,917 24,917 24,917 299,000 Per FY20 Amortization Schedule

Interest Expense on series 2017 bonds 105,959 105,959 105,959 105,959 105,959 105,959 105,959 105,219 105,219 105,219 105,219 105,219 1,267,806 Per FY20 Amortization Schedule

Total Expenses 643,914 827,664 827,664 827,664 827,664 802,164 800,064 798,480 798,480 798,480 798,480 1,118,680 9,869,394

Net Gain (Loss) -613,696 21,497 -30,731 23,397 -21,746 40,894 49,476 71,816 39,600 56,010 -16,390 384,915 5,042

San Tan Montessori School, Inc

FY 2019-20 Monthly Forecast

Accrual Basis

Category

Amount FY 18

(Actual)

Amount FY 19

(Projected)

Amount FY 20

(Projected) Notes

Change in Net Assets $ (321,417) $ (1,065,064) $ 5,042 FY18 Audit, FY19-FY20 Forecast

Depreciation/Amortization $ 256,207 $ 562,897 $ 676,896 FY18 Audit, FY19-FY20 Forecast

Interest Expense $ 2,046,110 $ 2,612,676 $ 2,607,188

FY18 Audit, February 2019 Flow of Funds-Amort

Schedules

Lease Expense $ 28,008 $ 28,000 $ 28,000 FY18 Audit-Assumed FY19/20 to be the same

Total $ 2,008,908 $ 2,138,509 $ 3,317,126

Current Portion of Long Term Debt $ 130,000 $ 139,167 $ 149,167

FY18 Audit, February 2019 Flow of Funds-Amort

Schedules

Capital Leases $ 28,902 $ 15,212 $ 7,176

FY18 Audit, 2 Leases expired FY18-1 Lease

assumed and expires FY20

Interest Expense $ 2,046,110 $ 2,612,676 $ 2,607,188 Row 10

Lease Expense $ 28,008 $ 28,000 $ 28,000 Row 11

Total $ 2,233,020 $ 2,795,055 $ 2,791,531

Fixed Charge Coverage $ 0.90 $ 0.77 $ 1.19

Source: FY 17 and 18 Financial Statements

San Tan Charter School

Fixed Charge Ratio

From: Kris Sippel <ksippel@santancs.com> Sent: Monday, March 11, 2019 10:39 AM To: Barbara Wahlman <bawahlman@santancs.com>; Michele Diamond <mdiamond@diamondfinancialsolutions.org> Subject: Fwd: Current Numbers

Dr. Kristofer Sippel CEO/Superintendent San Tan Charter Schools Begin forwarded message:

From: Jeanne Evans <jevans@santancs.com> Date: March 7, 2019 at 8:52:49 AM PST To: Kris Sippel <ksippel@santancs.com> Subject: RE: Current Numbers

Grade Openings Count Waitlist / Pool Ideal count

KG Full day 0

30 / 2 72

KG Half day 42 5 / 4

KM Full day 0

17 5 / 2 24

KM Half day 7 1 / 7

1st -8 64 / 1 56

1G 24 4 / 0 28

1M see 2M 24 / 0 see 2M

2nd -8 64 2 / 2 56

2G 9 19 / 0 28

2M -1 16 2 / 0 56

3rd -14 70 / 0 56

3G 6 22 / 0 28

3M see 2M 17 / 0 see 2M

4th -12 68 0 / 2 56

4G 4 24 / 0 28

3/4 combo class 28 0 0 28

5th 6 84 / 0 90

5G 4 26 / 0 30

6th -8 68 / 5 60

6G 4 26 / 0 30

7th Recker -12 42 / 2 30

8th Recker 19 11 / 0 30

7th Power 46

8th Power 76

9th 85

10th 73

11th 61

12th 46

Total 1132

Kind regards, Jeanne Evans Registrar San Tan Charter School 3959 East Elliot Rd Gilbert, AZ 85234 480-222-0811 480-471-5990 fax www.santancharterschool.com From: Kris Sippel <ksippel@santancs.com> Sent: Thursday, March 7, 2019 9:33 AM To: Jeanne Evans <jevans@santancs.com> Subject: Current Numbers Can you please send me the numbers for next year.

Educationally Yours, Kristofer Sippel CEO/Superintendent of Schools San Tan Montessori School INC

2013 - 2018 East Valley Tribune Best Charter School 2014 Gilbert Chamber of Commerce Large Business of the Year

Page 1 of 2   

Financial Performance Response Evaluation Instrument Charter Holder Name: San Tan Montessori School, Inc.                        Charter Holder Entity ID: 89798 

Required for: Expansion Request Audit Year:  2018

 Arizona State Board for Charter Schools (Board) staff completed the Financial Performance Response Evaluation Instrument for the Board in its consideration of applicable requests made by the charter holder. For each measure where the charter holder did not meet the target for the most recent audited fiscal year presented in the dashboard, Appendix C of the Financial Performance Framework requires the charter holder to answer three questions: 1) why did we not meet the measure’s target in the audited fiscal year; 2) what specifically have we done to improve our performance so that it’s possible to meet the measure’s target in the next fiscal year or a subsequent fiscal year; and 3) what can we provide to support our explanations and analysis? A “Not Acceptable” evaluation means the response for that measure did not sufficiently address one or more of these questions. “Not Acceptable” answers may adversely affect the Board’s decision regarding a charter holder’s request. 

 Measure 

 Reason(s) for “Not Acceptable” Rating 

 1a. Going Concern 

  Acceptable  ☐ 

  Not Acceptable  ☐ 

  Not Applicable  ☒  

 

 1b. Unrestricted Days Liquidity 

  Acceptable  ☐ 

  Not Acceptable  ☐ 

  Not Applicable  ☒  

 

 1c. Default 

  Acceptable  ☐ 

  Not Acceptable  ☐ 

  Not Applicable  ☒  

 

 2a. Net Income 

  Acceptable  ☒ 

  Not Acceptable  ☐ 

  Not Applicable  ☐  

  

Page 2 of 2   

 Measure 

 Reason(s) for “Not Acceptable” Rating 

 2b. Cash Flow 

  Acceptable  ☐ 

  Not Acceptable  ☐ 

  Not Applicable  ☒  

 

 2c. Fixed Charge Coverage Ratio 

  Acceptable  ☒ 

  Not Acceptable  ☐ 

  Not Applicable  ☐