Two students from ASB provided the campus update covering the following topics: ASB rallies once a month, success ticket winners, back to school night (featuring a mariachi band to kick off Hispanic Heritage Month, and Chromebook sales), sports season starting, Esports,  Jazz Empowers, and spirit week at Scholarship Prep - Orange County (Grand Site) next week. 

Jason Watts provided the organization update, covering the following topics: a Riverside site update, Oceanside site renewal petition submission last week, an enrollment update at next month's meeting, and independent study. 

Charles Friedrichs also mentioned that Scholarship Prep had a successful audit from LAUSD. 

Kate Eng provided the Charter Impact presentation covering UARs, Change of Bank Account, and CalSTRS Employer Paid Member Contributions for Scholarship Prep - Riverside.

On July 5, 2024, US Bank let us know about suspected fraud activity. The school implemented several measures to increase the security on the account, including payee positive pay. There was a loss of funds because checks were intercepted, counterfeited, and cashed from the account. The school has filed an affidavit with the bank and intends to recoup the stolen cash. The account is compromised and there is fraud activity daily, so the recommendation is to close the account. 

Charles Friedrichs asked about what we can do differently moving forward. Kate explained that the current account did not have payee positive pay or positive pay set up. This is a security measure that's going to be implemented from day one with the new account. The checks were intercepted, and this is something that's occurring more commonly. The schools will pay the recurring payments that they can through ACH, and that eliminates the opportunity for checks to be intercepted.

Charles Friedrichs also asked if this been turned over to authorities for prosecution or if the bank follow up with authorities? Kate stated that we have reported it to the bank and she can check on if the bank will follow up with authorities. 

Pete Watson raised a concern that there may be a possibility of the new account being compromised as well, and Kate responded explaining that the information that has been compromised was the account information, so that the checking account specifically the routing information. The checking account will be new and we hope that this will curb any activity in in the near and medium term.

The Board entered the closed session at 2:41 pm.

Board Chair, Charles Friedrichs, reported out of close session at 3:01 pm. There was nothing to report out of closed session.

Barbara George stated that she is looking forward to an update regarding the status of the bank account next month. 

Pete Watson asked Jason Watts to share an update on the participants who attended the last board meeting from Oceanside. Jason shared that he, Principal Nicholas Sessions, and a number of staff members put a plan in place. The parents at the meeting asked great questions about everything around parental volunteerism, electives, etc. Principal Sessions did a great job bringing his personality and sense of humor, but also answering questions very directly about how we're going to move forward positively. We have support in the classrooms and opportunities for families to come in and volunteer in a very structured and organized way that we ensure that the time that's spent is well spent.