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Deputy Director Andrew Crowe shared with the Board some information surrounding Scholarship Prep's CSP Grant. A visit and review were conducted in May 2021 and a draft report was made available to Scholarship Prep in September of 2021. While the final review of the audit is still in process, staff wanted to keep the Board up to date on findings and where they stand. 

Board President Charles Friedrichs asked if the money from the grant is accessible to the school. Mr. Crowe responded that there are about $7-$8 million in funds available for Scholarship Prep. 

Vice President Leandro Otero asked if there were any initial findings in the draft report that were concerning as well as if Scholarship Prep can inquire about an update on the results. Mr. Crowe responded that the time in between the draft and final is fairly typical with federal funding sources. The only major question raised in the report was a timeline of new campuses opening. Currently, Scholarship Prep is excited to open it's new Orange County campus and explore other expansion opportunities in the coming year. 

Executive Director Jason Watts provided an organization update which first covered the lifting of the indoor mask mandate by Governor Newsom on March 12th. Students, staff, and visitors are no longer required to wear masks when indoors on campus. However, Scholarship Prep will continue to implore mitigation strategies. He also shared that recently, Scholarship Prep dropped off its Charter Petition to the Riverside County Office of Education. 

Lastly, he reviewed the results of the 2020-2021 LAUSD Oversight report findings with the Board. He noted there was no review of academic performance because of no state testing in the prior year. Findings made regarding finances and fiscal health listed on the report were either in the process of being rectified or have since been addressed. 

Vice President Otero asked regarding the petition drop, if the decision is district-based and a summary of the petition. Mr. Watts shared the petition will be a replica of the Orange County petition and programs. He also gave notice to the Board that similar to LAUSD, there will be a capacity hearing. 

Board Member Crystal Madaule asked a question regarding Item C. She wondered why some of the tiers were lower than the $15/hour California minimum wage. She asked if they were classified differently. Mr. Crowe stated that there are currently no Scholarship Prep employees or substitutes under that payment tier and that the inclusion of that tier on the plan was an administrative mistake that would be addressed. 

Jason Sitomer from Charter Impact presented on all interim reports. He shared overall, revenues consolidated increased by $1.1 million and expenses decreased by $380,000. The consolidated surplus is now up to $3.4 million across the three schools, and the current cash flow is positive with no immediate need to borrow. 

For Scholarship Prep Oceanside's original budget, the school's revenue is up $2.7 million, and the school's expenses are up close to $600,000.

Since first interim Oceanside revenue has increased $320,000.

For Scholarship Prep Orange County, since the first interim, their revenue has increased by $445,000. One item to note is that there $600,000 still remaining in the budget for repairs and maintenance. This may happen this may not happen for the site.

Orange County is projected right now at a $1.2 million surplus this year, well above the minimum required.

Board President Charles Friedrichs asked about those funds for repairs, Mr. Crowe stated that staff is still in the process of acquiring proposals and securing permits. So while the money may not be used this fiscal year, it would be used in the following. 

Scholarship Prep South Bay saw a revenue increase of $360,000 and total expenses went down by almost $125,000. The school is projected a little over a million dollars in surplus this year.

Vice President Otero asked how Scholarship Prep is planning on continuing to remain competitive with compensation as we head into hiring season especially taking into consideration teacher burnout and making sure we continue to hire the best candidates. He wondered if the next Board Meeting staff could prepare and share what Scholarship Prep is currently doing and offering. 

Executive Director Jason Watts shared that he is currently working on a presentation to bring before the Board in the future which addresses these exact concerns. Charter Impact's Jason Sitomer did mention that some monies in the budget have a finite timeline. So to consider those factors when making financial decisions. 

Board Member Birchler mentioned the storytelling on social media and encouraged staff to continue to share videos similar to the athletics and black history month videos recently shared.