Jim White of Bernard Franks distributed PowerPoint presentation to all members
JW asked if there was a place to start based on the recommendations of the members present - no major Internal Control issues. Bernard & Franks issued an opinion on the financial operations of IHSNO. For the '15-16 there were not any findings or issues in performing the audit for the year. 
Pg 15: No Internal Control matters or matters of Laws and regulations. the 2013 matter will be reported as a prior year matter. The Legislative Auditors required reporting of the 2013 matter. 
Unmodified Opinion of the Auditors
Highlights:

1. Net decrease in assets of $100k. It was planned based on budget. In prior year '14-15 there was almost $500k surplus. 
2. Net Assets $1,268K or 20.7% of tolat operating expenses. Minus property $839k which is 13.7% or expenses. About 1 month of unrestricted net assets. May want to consider increasing Net Assets to about 3 months. 
3. increase in revenues to $373k, expenses increased 15.8%, support expenses 20.7% whichi is good for the inductry which usually averages 25%. 

The Board does not have a stated policy regarding Net Reserve target? IHSNO does not have a policy at this time. MR stated the committee will be looking at policies and may consider this in the near future. 

1. Fundraising to expenses is very low - the accepted rate is about 1/3 of the amount raised. This information is a composite, not specific to Charter Schools. 
2. Working capital is excellent - 3.28 with 1.0 being ideal
3. Pg 3 Balance sheet is $1.2 M
4. Pg 4 statement of activity - rev increased,  expenses increased
5. Wage and hours were reviewed and noted that this is on hold

Matters to consider:

1. Consider 3 months budgeted expenses in net assets
2. consider investments program cash in excess of current working capital

no significant audit findings

1. Disagreement with management - NONE
2. Management consultations with Other Independent Accountants - NONE
3. Other Audit Findings or Issues - no instances of noncompliance or other matters

 

Jim White of Bernard & Franks reviewed the IRS Form 990

Need to update the mission statement for the report

Overview of the state of VIBE policies, board members are listed need to be updated and corrected

Need to have all comments of the IRS Form 990 by December 15, 2016. - Comments to Mariska Roney.

Financials distributed to the committee prior to the meeting. 

How are decisions made based on the outcomes of the monthly report? the committee's responsibility is to review the information and determine if the school is meeting the outcomes as prescribed or governed through policy. Much of commentary is around the budget to variances. 
At what point does an alarm goes off? This may be a policy setting component of the committee. Is attendance the variable the school does not control? Does a variance have an explanation? YES.

Are there other KPI's to consider?
What are other measures to be considered?
What are policy documents that may need to be reviewed and considered? 

 

move to the December 15, 2016 Finance Committee meeting

MR passed out another draft of the Policy to be reviewed