Sean Alexander, the engagement partner from Daniel Dennis, joined us for the meeting to present the audit.  He has been with Daniel Dennis for 11 years and is presently the audit partner for 5 other Massachusetts charter school audits.  Sean explained that the audit went smoothly and all materials were ready as expected.  The audit is a clean audit (unmodified) opinion.  No material weaknesses, deficiencies, or areas of noncompliance were found.  Sean walked the committee through important ratios.  Sean noted that the cash ratios were flagged due to the movement of $2.7 million of funds into treasury bills which were not classified as cash as well as the June tuition payment coming through in July.  Sean noted that this is not a cause for concern.  Sean also noted that the combined ratios with the foundation changed significantly because the entire bond payment was classified as current due to the bonds maturing this fiscal year (March 2027).  Sean explained that they will be tracking any changes needed for the rollout of GASB 105.  The audit is due to the state by 10/30.  The committee asked about any concerns over the small size of the office and the segregation of duties.  Sean explained that the controls in place where satisfactory given the size of the office.  

Michelle and Brian presented the current projections for this fiscal year.  It appears the tuition is running favorable.  Rather than coming in with a significant surplus, management is the committee to consider adding a partial FTE for additional adjustment counselor services for FY26.  

Michelle presented some iniial thoughts aound the bonds maturing.  There will be a $1.4million balloon payment due 3/7/27.  Michelle noted we can think about a tax exempt financing, a traditional financing (mortgage), or paying off the amount out of reserves.  We are currenly earning just under 4% on investments, and borrowing rates are above 7%.  The committee agreed to give soem thought to next step.  We plan to invite the Sizer Foundation memebrs to our Novemeber meeting to discuss options and next steps.