David Olson presented the 2025-26 Unaudited Actual Reports (UARs) for Oceanside, Orange County, Riverside, and Upland. South Bay’s UAR had previously been approved and submitted to LAUSD.

Charles Friedrichs asked about the remaining Charter School Program (CSP) funds for Riverside and Sarah Schoenfeld-Nakamoto confirmed that Riverside expects to expend its remaining funds, with approximately $25,000 remaining to be spent between July 1 and September 30, after which the grant will be fully closed. 

A question was also raised regarding increased special education costs at Upland and whether the increases were expected to continue. David stated that the higher costs were incorporated into the 2026-27 budget and noted that the first year of operations provided useful information for future budgeting.

Steve Thomas acknowledged the work of the finance team and noted that the UARs provide an important year-end comparison between budgeted and actual financial results.

David then presented the July 2026 financial forecasts. Oceanside, Orange County, South Bay, Riverside, and Upland were all projecting positive results for 2026-27, with improved enrollment contributing to favorable revenue projections at several schools. Riverside was projected to reach the authorizer’s 4% fund-balance target, while Upland’s increased enrollment was expected to significantly improve its financial position.

David noted that Upland’s increased enrollment will create a temporary cash-flow need because the additional state funding will not be received until later in the school year. Management anticipates requesting a $1 million interorganizational loan to support Upland’s cash flow, structured as a five-year loan at 2.5% interest. Management expects Upland to begin repaying prior interorganizational loans as additional enrollment funding is received.

South Bay’s bond covenants were also reviewed. The school was projected to remain in compliance with its minimum base rent coverage ratio and liquidity requirements.

Jason Watts provided the organizational update covering the following topics:

• Enrollment Update: Total enrollment of approximately 2,315 students across all sites. Oceanside enrollment increased slightly, South Bay continued to perform strongly, and Upland and Riverside remained on track. The efforts of site teams and the recruitment and communications teams in maintaining enrollment was recognized.
• South Bay Renewal Update: LAUSD staff provided comments on the renewal petition. The majority were described as minor corrections or clarifications. Additional comments may be provided following LAUSD's review of the responses. Final findings and a recommendation are expected to be presented to the LAUSD Board on September 28.
• Communications and Media Update: Several recent media features showcasing Scholarship Prep South Bay, including a full-page feature in the Los Angeles Times and segments on Spectrum News and ABC. The coverage focused on the use of trauma-informed approaches, support for students and families, chronic absenteeism, and resources available to students experiencing homelessness. Staff noted that South Bay had a 1.4% chronic absenteeism rate compared with the state's 19.4% rate during the 2024–25 school year, and that the school saw a 20-point increase in math scores. Charles Friedrichs asked who was responsible for the media preparation. Jason confirmed that Larson Communications coordinated outreach and prepared staff, students, and families for interviews while the communications team prepared scripts, conducted pre-interviews, and supported participants throughout the media process.