By: David Schriver
Locally, independent schools have seen a decline in enrollment over the past decade and smaller schools of fewer than 200 students typically bear the brunt of this attrition each year. As a result, the gains expected from increased tuition rates are often offset by the loss of students. Independent schools raise tuition in order to provide additional programming and to attract and retain experienced faculty. When rates go up but enrollment goes down, schools are left to fund programming and faculty costs through other means.
All too often, the budget line item for setting aside funds for future facility repairs and maintenance, referred to as Provision for Plant Replacement, Renewal and Special Maintenance (PPRRSM), is the one that gets slashed to keep the budget balanced. This causes a significant issue to build up related to deferred maintenance.
In the November 24, 2017, print edition of The Baltimore Business Journal, David Schriver, Jr., CPA, a director in Ellin & Tucker’s Audit, Accounting, and Consulting Department and chair of the firm’s Education Services Group, dives into the importance of prioritising facility maintenance for Baltimore’s independent schools.
To read the rest of the article, please visit Column: Schools should make facility maintenance a priority on The Baltimore Business Journal’s website (Subscription required).
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DAVID D. SCHRIVER, JR., CPA, is a director in the Audit, Accounting and Consulting Department and chairperson of the Education Services Group at Ellin & Tucker in Baltimore, Md. David brings to the table more than 20 years of expertise in providing financial statement audit, review and compilation services as well as preparing corporate tax returns for his clients. As an engagement leader for several of the firm’s not-for-profits and independent school clients, his familiarity with budgeting and forecasting, cash flow analysis, strategic planning, capital campaigns, risk management and human resource functions is a rare set of skills few other accountants can match. He can be reached at email@example.com.