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[quote=Anonymous][quote=Anonymous]So does SSMA's FAR raise concerns, or is it a normal hangover of the move?[/quote]

The PCSB comment suggests it is due to the move; depends on what happens in 2018 and beyond.

"The school had an operating deficit of ($448K) in 2017 compared with a deficit of ($33K) in 2016. Revenues grew by 23% from the
prior year, while expenses grew 37%. The driver of increased expenses was rent expense, which increased to $905K from $287K
one year earlier. [b]The increase was due to a 10-year occupancy lease with Howard University which began in 2017. The school
is in negotiations with Howard University to purchase the building in an effort to reduce expenses as the anticipated mortgage
payments are expected to be less than the current lease obligation. As of the end of fiscal 2017, no formal agreement has been
obtained.[/b]

In 2017, the school’s current ratio, a financial indicator that speaks to the school’s liquidity, was an area of concern at 0.46. The
current liabilities exceeded the school’s current assets for the year by over $495K. [b]The decrease in liquidity was primarily due to
the occupancy lease with Howard University. To address its liquidity needs and reduce expenses, the school has implemented cost
reduction activities including reductions in capital improvements and administrative costs[/b]." [/quote]

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