S. Geldiyev, MPS Finance Committee Member, joined the meeting at 6:50 pm and started voting and discussing during item II A Approval of Recommendation of 2017-18 MPS Audit Reports. 

B. Torres, MPS Board Secretary, led the pledge of allegiance. 

There were no public comments. 

N. Montijo, MPS Chief Financial Officer, introduced the audit reports for 2017-18 and went over the annual requirements of these reports. M. Miller from Vavrinek, Trine, Day & Co., LLP, audit firm, went in depth into each Magnolia Public Schools' (MPS) audit report and the multiple LLCs of MPS. He explained how he has worked with staff on this audit and what future work will have to be done. M. Miller, explained the STRS and PERS contributions and went over the increase percentages and budgeted amounts along with restricted and unrestricted funds. MPS staff and audit firm representative addressed committee member questions. The committee thanked staff for having a clean audit.

N. Montijo, MPS Chief Financial Officer (CFO), gave an overview of the 2018-19 First Interim Financial Reports. She explained the process of creating these reports which included speaking with each site principal and incorporating their feedback into the report. K. Yoder, Chief Financial Officer of Delta Management Solutions (DMS), summarized the interim report to the committee, he went over the over all deficit due to enrollment numbers, he explained what adjustments have been done to the budgets to address this deficit while ensuring the program goals continue to be met.  V. Gurler, MSA-Santa Ana Principal, and G. Serce, MSA-San Diego Principal explained the reasons behind the drop in enrollment at their sites and what recruitment efforts are currently in place to address the drop in numbers. The MPS CFO mentioned the CMO cuts that have been done to the MSA-Santa Ana budget to ensure the school's budget is not in the red. L. Ross, MSA-4 Principal, talked about new partnerships for student recruitment and how C. Brimmer, MPS Board Member, has helped. She stated that the co-located site is also struggling with enrollment. She went over staff needs but agrees that these additions will affect the budget negatively so they have been placed on hold. A. Rubalcava, MPS Chief Executive Officer, explained the active searches for a different facility for MSA-4 to assist in increasing enrollment. The committee and staff discussed the interim reports at length, all questions were addressed. 

N. Montijo, MPS Chief Financial Officer (CFO), gave a brief status report on the fiscal management improvements that have been done to continue to implement the fiscal oversight report recommendations and School Services of California (SSC) management letter. A. Rubalcava, MPS Chief Executive Officer, mentioned the LAUSD requirements as to way these updates are being given to the MPS Board. All questions were addressed.