Dear SouthLake Christian Family,
For those new to SouthLake, I send a school update on the first of each month entitled First Thoughts, a name I borrowed with permission from a colleague. I take this opportunity to send crucial information that will help you better understand and support our school. Today’s update includes information about our safety measures, enrollment, finances, School Board, and church affiliation.
First, let me begin with a word of appreciation. Thanks to your efforts and cooperation, we have had only 5 cases of COVID in our student population since the start of school. In each case, we were able to identify close contacts, quarantine the appropriate individuals, and provide them with online instruction. We now have first-hand evidence that our safety measures are preventing the spread of the virus at school. This takes remarkable effort on the part of all members of our community. Thank you, and let us all remain vigilant.
Second, our enrollment at this moment stands at 593. On this same day in 2019, our enrollment was 556. Almost all of this growth has taken place in grades JK-4 where we added classes to facilitate demand and keep our class sizes small. We begin this year with more than 150 new students and 23 prospective students still on a wait list. Most of our new families report they heard about SouthLake from other SouthLake families. Our retention rate, defined as the percentage of eligible students who return to SouthLake each fall, remains at 92%. These healthy numbers and upward trends are a testament to our teachers whose reputation has helped sustained SouthLake through multiple economic downturns.
Third, I offer this brief financial summary. Last year we received $6.9 million in net revenue from tuition and fees after awarding $1.2 million in need-based financial aid. 65% of revenue went to salaries, 18% to instructional costs, 12% to facilities (including debt), and 5% to administrative costs. In spite of the economic calamity caused by COVID, we received $115 thousand in cash donations, approximately $203 per student, only a slight decrease from the previous year. These numbers will obviously look different for the 2020-2021 academic year, but they will be different in amount not proportion. Our goal remains to spend most of our revenue on the thing that matters most to your students – the people who teach, minister, and invest in their lives.
Fourth, our school is governed by the SouthLake Christian Academy School Board. Four members of our School Board are also members or ruling elders of SouthLake Presbyterian Church, of which we are a wholly integrated ministry. The remaining three members of the School Board are selected by the school from among parents actively involved in the school. Members serve a three-year term and their primary responsibilities include financial oversight for the school along with supervision and evaluation of the Head of School. You can find more information about our School Board in our Student Handbook and on our website.
I mention this because the relationship between the church and academy is set to undergo some revision. At the conclusion of our annual audit in 2019, the CPA firm Franklin and Franklin recommended that the church and school divide into two separate legal entities to facilitate greater financial autonomy and transparency. Subsequently, the School Board voted to recommend to the church’s governing body that the church and school form separate 501(c)3 organizations. The church has now taken this recommendation under advisement and is considering what forms of church governance should remain to protect the long-term Christian mission of the school as the two entities separate. These discussions involve complicated details about asset allocation, debt management, financial accounting, and non-profit governance. I am happy to discuss these things with you, but I suspect I have already lost much of my audience at this point. Suffice it to say that our mission remains unchanged: to educate and disciple students in all aspects of God’s reality.
I would apologize for the length of this email, but those who would appreciate an apology likely stopped reading a few paragraphs ago. My tendency is to err on the side of transparency, sometimes at the expense of brevity. I want you to know how our school operates, and more importantly, the purposes for which it operates. So without further verbosity, let me close by saying that I am grateful each of you are part of the SouthLake family.