MCS in “Deep Financial Trouble?” Elmore Gone? School Going AMI?
"Just wondering if you knew that MCS is in deep financial trouble and has fired Jan Elmore without just cause.The above quote is the entire contents of a letter that someone went to great trouble to anonymously snail mail to us with no signature or return address. Whether any of it is true or not, we don't know. Make of it what you will.
Apparently the program is becoming AMI and all others are being slowly replaced."
But it did pique our curiosity enough to cause us to compare the school's recent IRS Form 990s for information about its financial situation. The 990 is the publicly available tax return and financial statement that all nonprofits must file.
As of this writing, the most recent 990 is for the school's fiscal year (FY) ending June 30, 2007. Comparing this financial statement with the 990s of the years ending June 30, 2006 and June 30, 2005 reveals that even in that last "good" economic year before the recession hit later in 2007, MCS's financial position had deteriorated. Consider that:
- In the FY ending June 30, 2007, MCS generated program income and contributions of $1,474,679 compared to the prior FY income and contributions of $1,526,880, a reduction in income of $52,201.
- At the same time, program services (expense of operating the school) increased $199,295 to $1,525,048 from the prior FY's $1,325,753.
- In the FY ending June 30, 1007, MCS lost $50,369 compared to the prior year's gain of $201,127.
- Accounts receivable in the FY ending June 30, 2007 were $405,515, up from $130,730 in the prior FY and $44,796 in the FY ending June 30, 2005.
- Contributions in the FY ending June 30, 2007 totaled $25,049, of which $10,350 were cash donations. In the prior FY, contributions totaled $116,772, of which all but $720 were cash donations.
- Salaries in the FY ending June 30, 2007, not including that of the Head of School, totaled $865,423, up from $710,502 in the prior FY.
- The salary of Head of School Wendy Fisher increased to $70,386 from $64,770 in the prior FY. In the FY ending June 30, 2005, the prior Head of School earned less than $50,000.
- On April 18, 2007, the MCS Board of Trustees voted to revise the school's bylaws, reducing the minimum number of Trustees on the Board to eight. Ten weeks later, on June 30, 2007, the school's Board had just six Trustees.
- In contrast to the open meetings required under the old MCS bylaws, the new bylaws state that meetings of the MCS Board of Trustees "shall be closed, except when the Board votes to hold an open meeting."
- In the Form 990, the IRS requires that a nonprofit list the names and addresses of all trustees who served during the FY. MCS did not, however, name in the 990 for the FY ending June 30, 2007 at least two Trustees (the Vice-Chairman and the Treasurer) who served on the Board during that FY and then left well before their terms ended.
Labels: Charlottesville, Montessori
(updated September 2007)