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Friday, August 18, 2017

ACCOUNTS DECEIVABLE: Grand Traverse Academy Addicted To Short-Term Borrowing; Jonesing For Benjamins Under Ingersoll Regime Put School In Multi-Million Dollar Hole!


























NOTE 11 - Short-Term Notes 2009 

The Academy had two short-term notes payable at the end of fiscal year ending June 30, 2009 totaling $3,200,000. There was a State Aid Anticipation note from the Traverse City State Bank in the amount of $1,200,000 with an interest rate of 3.75 % due by March of 2010. There was also a note with the Traverse City State Bank that had a balance of $1,303,575 which was paid off in July of 2008 through a refinancing with Fifth Third bank for a new State Aid Anticipation note. In addition to the refinanced amount of $1,303,575 another $2,696,425 was included to establish the new State Aid Anticipation note for a total $4,000,000 with a variable interest rate not to exceed 7% per annum. At the end of June 30, 2009 there was still $2,000,000 yet to be paid.
Grand Traverse Academy Audited Financial Statements
Fiscal year ending June 30, 2009

Between 2007 and 2014, the Grand Traverse Academy's board of directors enabled and covered up Steven Ingersoll's siphoning of millions from the Traverse City charter school, hastening its descent into a nearly untenable financial position. 

But this woeful financial situation did not sneak up on the Grand Traverse Academy's board of directors—no, it was created by their actions. 

The Traverse City charter school’s current financial crisis was exacerbated by its board's decision in 2014 to waive recovery of millions of dollars looted from the school by its former manager, Steven Ingersoll, instead writing it off to bad debt and accepting fake bank records from Ingersoll.

The board's decision, made during the fiscal year ending June 30, 2013, to accept forged bank statements from Steven Ingersoll purporting to show a $1,813,330 repayment, was not reversed even when that repayment was later invalidated by federal prosecutors using Ingersoll's authentic bank statements!

Beginning in the fiscal year ending June 30, 2009, the Grand Traverse Academy's manager, Steven Ingersoll, began to borrow massive sums, likely due to the impact his embezzlement was beginning to have on the Academy's throttled cash flow. 

The Academy had two short-term notes payable by the end of the fiscal year ending June 30, 2009 totaling $3.2 million dollars. At the end of June 2009, there was still $2,000,000 yet to be paid. 

By the end of the fiscal year ending June 30, 2011, the Academy had two short-term notes totaling $5,587,294 (with a $5,537,219 principal and $50,076 accrued interest). 

Starting in May of 2011, the State of Michigan began taking payments for a $2.0 million State Aid Anticipation Note with the Michigan Finance Authority directly out of state aid payments prior to distributing the remaining funds through Lake Superior State University and Wells Fargo. 

Although the Academy paid off a remaining $600,000 balance to the Traverse City State Bank and $3,400,000 due to charter school finance company Robert W. Baird & Co., the Academy borrowed an additional $6,400,000 in State Aid Anticipation Notes during the year from the Michigan Finance Authority, the Academy was left with an ending balance of $5,537,218 at June 30, 2011 — nearly identical to the amount it owed at the beginning of that year. 

In the fiscal year ending June 30, 2012, the Academy began the year with a short-term debt balance of $5,537,218. The Academy paid off two remaining notes from the previous fiscal year with a new short-term note for $4,600,000 million in August 2011. The balance at the end of June 30, 2012 was $4,208,719. 

During the fiscal year ending June 30, 2013, the Academy borrowed another $4,275,000 in short-term State Aid Anticipation Notes. 

With a beginning balance of $4,208,719, and payments totaling $5,230,990, the Grand Traverse Academy was left with an ending balance of $3,252,729 as of June 30, 2013. 

It's like the guy who goes to his bank and says he just wants to borrow enough money to get out of debt. 

Instead of a pattern of subsequent borrowing to pay off the previous year's obligations, the school should have been building cash reserves instead of relying on larger and larger loans. 

But it couldn't.

The money was instead flowing out of the Grand Traverse Academy and into the pockets of Steven Ingersoll—and others.

Eight days to D-Day: the Grand Traverse Academy's expected August 26th default on a $2,341,536.74 balloon payment to Traverse City State Bank.

























1 comment:

  1. Love your clever and true wording: Accounts Deceivable. That's exactly what it's been. And all like Mr. Deceiver himself, Steven Ingersoll, with his team of deceivers - Noss, and the GTA school board.

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