The Board of Trustees, on behalf of the entire community of the Academy of the Sacred Heart, extends sincerest sympathy to all those in our school community who have sustained extensive losses during the recent hurricane. In the spirit of the Society of the Sacred Heart, please know first and foremost that our prayers have been with all our families and will continue to be as the weeks and months unfold. Equally important, on your behalf, we have sought to be fiscally conservative stewards of the limited resources of the school, seeking to follow the leadership of the early Religious of the Sacred Heart whose decisions made it possible for the Rosary to endure difficult times during its 118 year history. We realize our responsibility to make wise decisions that will enable our school to move confidently into the future.
Throughout the catastrophe that has been Katrina, the Board and the administration have dealt with issues as they have presented themselves. The decision was made to establish two satellite campuses at our sister schools at Grand Coteau and at Duchesne. Within days of Katrina, 54 percent of our girls were exchange students at 12 of our Network of Sacred Heart schools across the country. The Board then decided to pay our faculty and staff their full salaries for the month of September. For October, we paid full salaries to the 52 percent who were working daily for the school, mainly at Grand Coteau and Duchesne. We paid 20 percent of full salary to those who had relocated to areas where it was not possible to work daily for the Rosary. We also paid the school’s portion of the medical insurance premium for employees who are covered by our plan. Our goal was to keep our faculty and staff connected to the school so they would be available to join us when we could return to classes on our two New Orleans campuses. Beginning with the November payroll, we will be paying full salaries to those working at school. We anticipate that 98 percent of our faculty and staff will be in place by the beginning of the second semester on January 3.
What remains for us to deal with, then, are the important considerations of the financial situation of the school. The financial plan for the 2005-2006 school years was created, as it is in all years, with consideration for a balance between income and expenses. We opened school with 851 students, and hired faculty and staff based on the income that would be created by our enrollment. Included in the plan were other sources of income such as the Parents Annual Giving campaign, the annual auction, and the Spring Conge. A full complement of school traditions, after school programs, athletics, and extra curricular activities were planned. Katrina brought the entire plan into question. We simply do not have enough information at this time to make final decisions regarding our financial situation.
While there are fundraising appeals underway, our cash receipts have slowed at a time when our daily operating expenses will be starting again. Some have asked if our $5 million endowment could be used, but these are generally restricted funds whose principal cannot be invaded. As a not-for-profit institution, we do not have business interruption insurance that will replace income or lost tuition. Simply stated, we do not have guaranteed sources of revenue necessary to complete the 2005-2006 school year. Information will only become clear as the second semester enrollment is set and any remaining first semester tuition balances and second semester tuitions are paid. Consideration for financial aid will be given to families whose losses have been severe. Our goal is to end the year either breaking even or with the smallest deficit possible. This will be a challenge.
Finally, we await information that will help us set the school calendar for the remainder of the year. The State Board of Education will determine what expectations will be held for both public and non-public schools in the State . We have notified the BESE Board that almost all of our students have been enrolled in schools elsewhere within days of Katrina. We will consider that our students have been on exchange at their temporary schools. We intend to distribute information about any revisions in the school calendar as soon as possible.
These are trying times for all of us. The Katrina experience has unfolded to become the worst natural disaster in history of our country. Every day the situation changes as improvements are made to essential services and debris is managed. We are a city in the process of writing an extraordinary history of pride and survival. Along with these daily changes and improvements to our city, we have awaited the return of families and children who will re-ignite a spirit of family in our unique city. We sincerely want to work with our families to make this a reality.
With best and sincere regards,
Timothy M. Burns, Ph.D. Catherine Bisso Howard '70
Headmaster Chairman of the Board of Trustees
