Finance Committee

B. Cummings updated the Board on Finance Committee:

• B. Cummings provided insights into the FY24 budgets, his review and discussions with RO leadership, and recommended the board approve the balanced budgets provided.
• B. Cummings noted that there are factors that might need to be adjusted over the months and the CFO will bring any of these potential adjustments to the Finance Committee for discussion and then to the Board. 
• L. Li provided an overview of the budget review process, internal meetings conducted with each school, and the impact of these discussions on the budget from the initial submission to the draft budget presented (drove $6M out of the initial budgets submitted). Looking to supplement with fundraising dollars and additional per pupil funding (not originally anticipated) 
• During the budgeting process, the RO did an ESSER review.
  • We do have ESSER funds remaining, and need to assess how to properly spend it and whether it is spent in FY24 or FY25. We have a 3.3 ESSER reserve. That would leave us with a 3.8 surplus in the budget.
  • H. Richman asked about the ESSER spend down and how to spend it to maximize use and support through the time period remaining – L. Li noted we have the first three months of FY25 to spend the remaining funds. N. Wiltshire noted having it this year will help us meet our requirements. We will continue to apply the funds for eligible expenses this year. 
• H. Richman asked about 3.9 fundraising and the allocation between capital and operating budgets. N. Wiltshire summarized the objectives of the campaign, which was designed for operating, growth, and KIPP Forward as well as capital. N. Wiltshire noted we continue to be in the quiet phase of the campaign and the purpose of our campaign is clear in our materials and in discussions. A. Sinha noted the campaign is a growth versus pure capital campaign.  
  • H. Richman asked how much we’ve raised so far, and the 75% assurance is realizing an additional 4m in cash - N. Wiltshire affirmed H. Richman’s question.
• A. Aerts asked about timing for ESSER and how we are strategizing to get dollars in faster – L. Li answered the question with a summary of the presentation. 
  • A. Aerts asked about the per pupil numbers and if we were conservative in our estimates – N. Wiltshire confirmed these are official numbers – L. Li noted we were expecting a $200K increase in this funding for FY23
• Overall, from a budget perspective - $3.8M region-wide surplus, but the middle schools have a deficit – on a charter basis, charters are breaking even, high school and elementary schools are in good positions – trending in the right direction, and L. Li noted she would continue to report on this 
• H. Richman asked about reimbursements from the school district. H. Richman asked what the actual cost per pupil for our model was. 
• L. Li moved the finance presentation forward to enrollment. These numbers do not represent full enrollment. It is conservative. 
• S. Jones thanked her for the presentation and noted the steps taken were to move the function in the right direction.

B. Cummings reminded everyone there will be adjustments over the next couple of months and he called for a motion to approve the budget as presented.

A. Aerts made a motion to Approve the Budget.

S. Wilson Jones seconded the motion.

The board VOTED unanimously to approve the motion.