Transcript for: “Fiscal Soundness” video. 

Slide 2 

Private schools that have been in existence less than three years are required to demonstrate fiscal 
soundness and accountability before becoming eligible to participate in the state scholarship programs. 

Slide 3 

These schools must obtain a Letter of Credit, from a bank or other financial institution, or a Surety Bond, 
from an insurance company. A sample or template of each instrument is available on our website. 

Slide 4 

The bond or credit line must secure an amount equal to 25% of the school’s annual McKay and or FTC 
Scholarship funding -- in other words, equal to one quarter’s payments for both scholarships. 

Slide 5 

Schools new to the scholarship programs will have to estimate the amount needed. Consider using a 
high estimate. If your school exceeds its anticipated enrollment, you may be required to amend the 
bond or letter of credit to secure a higher amount. Talk with your Regional Manager for 
recommendations on how to estimate scholarship amounts. 

Slide 6 

Our office must receive the original financial instrument, and it must be in the name of the private 
school or its owner. 

For schools opening additional locations under the same owner, contact your Regional Manager for 
assistance with the fiscal soundness requirement. 

Slide7 

For more information on this topic, contact our office at (800) 447-1636 or email us at 
schoolchoice@fldoe.org.