O. Diaz, Chief Financial Officer (CFO), explained the Interim Reports for MSA Santa Ana, MSA San Clara and MSA San Diego. He explained that second Interim reports are required to be submitted to our approving entities. O. Diaz explained the fund restrictions Magnolia must comply with while spending grant funds. O. Diaz and K. Dietz from EdTec explained the figures to the committee and presented the action plan that was in affect to resolve variances. The Finance committee requested additional clarification regarding MSA Santa Clara's health benefits variances. O. Diaz addressed all Board members' questions. 
 

O. Diaz, CFO, explained to the committee that the Truancy Data Collection and Reporting Procedure is a new policy. MPS has complied with the reporting required but this policy formalizes the current truancy reporting process. O. Diaz, CFO, addressed all committee member questions. 

O. Diaz, CFO, explained the revised CMO Cost Allocation Table and the 10% Contingency Reserve for Economic Uncertainties. He explained that the Home Office Expense Allocation structure was designed in accordance with the Code of Federal Regulations Cost Principals for Non- Profit Organizations and California Education Code 47600. He explained the committee that factors on the presented table could be adjusted as needed. Committee member, S. Orazov, suggested that the CMO fee have a restricted percentage that limits the amounts charged to the schools and he also suggested that the Home Office budget retains a reserve. The committee members would like to see schools'  and home office budgets before approving this item. The finance committee directed the CFO to develop and provide examples of different methodologies that could be applied in place of the CMO Cost Allocation presented. O. Diaz will provide preliminary numbers in the budget item presentation to the full board. These numbers will be forecasted but are subject to change. No actions were made on this item. There will be further discussion on the item during the next regular meeting of the MPS board. 

O. Diaz, CFO, explained to the committee that this item was being resubmitted to them in abundance of caution to make sure MPS is in compliance. The Educator Effectiveness Spending Plan was to be submitted to the board first as a discussion item and approved in a separated meeting as an action item, therefore, this item will be presented to the board once again. This item had been previously discussed in a previous Board meeting, no actions were taken. 

K. Dietz from EdTec, presented the February financials to the Board that covered financials for eight (8) months ending in February 29, 2016. The committee members requested an analyses comparing last years' budget numbers with current budget numbers and would like to see a monthly forecast report. K. Dietz and O. Diaz addressed all questions. This was a discussion item, no actions were taken.

O. Diaz, CFO, presented the open intra company loans to the committee members. He explained the open loans for each school and went over the redistribution of available balances that were approved by the Board. O. Diaz addressed all committee questions. This was a discussion item, no actions were taken.