As I talk with different people about the school's finances, I get different reactions ranging from we are in dire straits to when are we going to build the next addition at North. Here are some facts about our finances and my take so that perhaps we can have more common ground.
We are in significantly better shape today than we were a few years ago when we were on the verge of closing the school. Here are some indicators:
- We borrow less from ourselves to make summer payroll. We use to be short all 4 payrolls in the summer and now we go into the summer with a good portion in cash reserves.
- We can give salary increases. First time in 3 years.
- We can make investment in our facilities and programs
- We are meeting our monthly budget targets by managing expenses and hitting revenue targets
However all is not rosy:
- We still don't have enough revenue to not borrow from ourselves in the summer
- We don't have a strong balance sheet when banks consider us for loans; critical for refinancing the loan on the North campus; we are working on this steadily
- We don't have an endowment which makes us a month to month, year to year organization where we have a heavy reliance on tuition to make ends meet
- We do not have a capital investment fund that can jump start a facilities investment if the Lord does bring us growth.
- We do have to say no to a lot of good to great ideas and needs because we have cut the expense side significantly over the past few years.
So, we can praise the Lord that He has brought us off the financial death bed, but as Dr Daugherty often says, we are still in a wheel chair not able to walk well yet. Through continued faithfulness in expense management and fervent prayer to a gracious Father, and diligent, wise work on our part, we believe that we are headed in the right direction.
Hope this helps.
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