Office of Independent Education & Parental Choice
Fiscal Soundness
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.
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 in the Application and Renewal Packet.
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.
Schools new to the scholarship programs will have to estimate the amount needed. Contact your Regional Manager for recommendations on how to estimate scholarship amounts.
For schools opening additional locations under the same ownership, contact your Regional Manager for assistance with the fiscal soundness requirement.
Tutorial
