1. Audit: We received a clean audit for FY25. Auditors to present audit to the Committee and take questions. Committee to vote on and approve the FY25 Audit (see attached audit draft pdf documents). 
   1. No material weaknesses or significant deficiencies were identified through the audit. This means that the documents released to the public reflect a clean audit. This will be reported to the state as a clean audit, and on our public financial dashboard with DESE. 
   2. Adjusting Journal Entries: We had no adjusting journal entries!
   3. Management Recommendations: We have one management recommendation:
      1. Management recommendations are best practices that the auditors recommend to strengthen internal controls and are only reported to the board.
      2. We had a management recommendation around upcoming changes to the GASB accounting protocols that will impact FY26 financials. I will work with the audit team to make sure we are prepared for them.
      3. Audit Attachment PDFs
         1. Management Letter
         2. Board Report
         3. Audit
         4. Ratios
      4. Uniform Guidance: The federal government has not issued their auditing standards (uniform guidance), so the auditors are unable to finalize our audit. However, we have a deadline with the state to submit our audit by November 1st. With the government shut down, it is unclear the timeline for receiving final guidance. 
         1. Option 1: Submit late and have a finding on next year’s audit.
         2. Option 2: Have the auditors prepare a separate paired down version of the audit that we could submit. This would cost ~$5K.

1. Debt Refinancing: Committee to decide on a plan for the structure of interest rate swaps.
   1. Recommendation: Utilize the ten-year swap as it presents the best rate and we already have a portion of the debt secured for the next 20 years.
      1. Floating rate – 5.12%
      2. 10 Year rate – 4.85%
      3. 20 Year rate – 5.25%

1. Enrollment Contingency Plan: Committee to review slides and provide input.
   1. We remain at about 675 students enrolled. There is a path to 680 students over the next couple weeks as we have opened subsequent lotteries. This means that with normal attrition (5-10 students over the year) that we are likely to average 20 students less than budget or $600K. 
   2. The school/foundation have a healthy cash position of close to $11.5M
      1. $3M of these funds we can use to meet debt covenants. The additional support would come from this line of cash.
         1. The $1.5M of the parking lot may need to come out of the $3M. However, the likely scenario is that they will not need to be removed. 
      2. We came into the year having budgeted $200K below budget and would need to request these additional funds from reserves.
      3. Recommendation: Make cuts to the discretionary and departmental budgets, increase reliance on fundraising by $100K, and request an additional $250K in support. 
         1. Brings the total ask of additional support to $450K over the year. 

1. FY25 Performance: We finished slightly behind budget in FY25 due to lower than expected enrollment and higher staffing/professional development costs. See attached budget to actuals analysis.
   1. While our tuition rate was higher than planned, our enrollment dropped below budget.
   2. Expenses came in slightly above budget in staffing, professional fees, and facilities. 

Overall, we finished $200K over budget for FY25.