Scottsdale Christian Academy

What explains the growth in money owed by related organizations?

What the records show

Related-party receivables rose from $36,802 in FY2024 to $1,459,227 in FY2025. Related-party payables rose from $4,000 to $230,255. The school discloses its affiliates, facility leases and capital contributions. CELF’s FY2024 filing reports a matching $36,802 payable; its FY2025 counterpart was not located in the reviewed records.

What this does not establish

This is a documentation question, not a finding of an undisclosed conflict, overdue debt, private enrichment or financial distress. Ordinary intercompany or construction advances could explain it. The school’s recent surplus and asset growth are important counterevidence.

Can we obtain an audit?

The FY2025 Form 990 says consolidated financial statements were audited and that financial statements are available to the public upon request (Schedule O). An audit is reported as completed, not pending. We have not obtained that audit or asked the school for it.

What needs to happen next

1. Request the FY2025 consolidated audited financial statements, auditor’s opinion, notes and consolidation schedule from the school.
2. Request the receivable’s counterparties, purpose, aging, repayment terms and approval records; reconcile both sides for the same year.
3. Close the question if the records establish ordinary, collectible and properly approved intercompany activity. Escalate only if records show a specific adverse transaction or collection problem.