There are no public comments. 

5-minute break 

The facilitator (MF) presented the State of the School – FY24 CPF Performance, breaking down the SY23-24 metrics across Academics, Operations, and Finance. 

A key challenge identified is ZEST Prep’s overspending on facilities, which limits available funding for personnel and directly impacts academic and operational performance. Additionally, efforts to address these issues come with added costs.

The session concluded with a review of the SCSC Renewal Criteria by Term.

Facilities & Financial Outlook Overview

The facilitator—ZEST Prep’s new CFO—provided a high-level facility and Financial Outlook presentation, with a focus on long-term sustainability and planning for future facility needs.

Current Financial Overview

• Enrollment is expected to increase over the next two years, contributing to overall revenue growth.
• Revenue is expected to increase from $3.05M (FY24) to $3.76M (FY26), primarily driven by QBE funding.
• Facility costs continue to rise and represent a significant portion of the school’s operating budget.
• The school experienced a small surplus in the prior year, followed by a deficit, with a return to a projected surplus in the coming fiscal year.

Key Financial Trends

• State funding now makes up a larger share of total revenue, aligning with standard funding benchmarks.
• Grant revenue has declined. 
• Facility costs are projected to reach 29% of the total budget by FY26—significantly above the recommended 15%.
• Instructional spending has historically been lower and is still decreasing below the 70% ideal benchmark. 
• Overall, financial health is improving, with projections showing a positive shift in net income.

Facility Debt & Capacity Analysis
A debt affordability analysis was shared, outlining potential borrowing capacity. To support this range, enrollment would need to increase. 

Next Steps
Final facility decisions are expected within the next 6–12 months. Planning will remain focused on:

• Supporting academic sustainability
• Maintaining healthy cash flow reserves and meeting CPF financial metrics
• Discussions regarding enrollment strategy vs charter term enrollment 

Break for working lunch at 11:47 am 

The discussion took place during Executive Session.

Audit Summary

• Total Assets: $5.9M
• Change in Net Position: +$238K is also subject to change based on the final submission. 

The audit identified four findings related to internal controls and back office provider. 

1. Failure to Record QBE Revenue
2. Unrecorded Debt and Capital Assets
3. Improper Recording of Grant Revenues related to recording CSP grants received over multiple fiscal years. 
4. Budgetary Concerns 

All findings will be addressed and will be rectified by Avolon, LLC.

ZEST Prep is responding to the FY24 Audit via a Management Discussion and Analysis. 

The Board Chair provided a brief overview of the responsibilities associated with each officer's role on the Board of Directors.

Officer Nominations:

Board Chair: BJ – no additional nominations; nomination accepted

Vice Chair: RP – no additional nominations; nomination accepted

Secretary: AO – no additional nominations; nomination accepted

Treasurer: HR– no additional nominations; nomination accepted

All nominations were acknowledged and recorded accordingly.

Facility Scenario 

ZEST Prep evaluated the facility options that were presented, comparing total cost, financing structure, and cost per square foot. All scenarios were evaluated for long-term affordability and alignment with projected growth.

Next steps are tabled for further discussion. 

Events by Kenna provided a session on short-term and long-term planning for the ZEST Prep Board of Directors. 

• Galas 
• Community Fairs/Festivals 
• Online GIving Days/Virtual Fundraisers 

The Board of Directors is considering several events: 

• 5K  
• Capital Campaign for playground 
• Top Golf 

The Board of Directors discussed the Give or Get minimum contribution amount at $1000.00 and by December 31st of this calendar year. 

The Board of Directors began taking professional headshots at 3:19 pm.