Elizabeth Dignan, Chief Operating Officer, presented the Year-to-Date Financials and Fiscal Year 2019-2020 ("FY20") Forecast materials to the Committee. Dignan highlighted that the materials were management-prepared and not yet audited by any entity. Dignan went on to explain that the co-location of City on a Hill Circuit Street ("CoaH CS") and City on a Hill Dudley Square ("CoaH DS") which began in January 2020 has introduced accounting complexities with respect to proper allocation of costs to the appropriate school. Dignan added that due to this challenge, the Finance Team is reviewing methodology of allocation, and financials to be discussed by the committee are subject to change.

Dignan then began walking the committee through revenue and expenses. Dignan shared that revenues in Boston are based on higher than budgeted enrollment (394 forecasted vs 364 budgeted), but that of City on a Hill New Bedford ("CoaH NB"), revenues are based on lower than budgeted enrollment (90 forecasted vs 120 budgeted). Dignan added that Q3 estimate of per pupil decreased due to lower school spending my districts, and that there may be further reductions due to continued decreases in spending related to COVID-19. 

Dignan next shared the expenses that COVID-19 has lessened for City on a Hill, including cancelling the Junior class trip to Washington, D.C., savings from not having transportation or nutrition expenses, lower facilities costs, and staff transitions. Dignan also noted that some events, such as Graduation and Prom, are still to be determined and introduces uncertainties to the remainder of year spend. Dignan also shared that COVID-19 introduced unexpected costs, including purchasing 100 new Chromebooks to support remote learning during City on a Hill's extended closure.

Committee members discussed the information presented, focusing on the mechanisms of tuition revenue and inquired about the net loss in CoaH NB's revenue relative to the funds made available by the City on a Hill Foundation ("the Foundation"). Dignan noted that CoaH NB began the year with cash, which will help cover the net loss and management's proposed mitigation plan is to manage case closely through the end of the year to not spend beyond what was approved by the Foundation.

Committee members then asked about the impact of purchasing Chromebooks in response to COVID-19. Dignan assured that while the purchase was an unanticipated expense, the difference is partially covered by not having fully spent this school year's tech budget.

Next, the Committee turned their attention to the Fiscal Year 2020-2021 ("FY21") Budget. Elizabeth Dignan, Chief Operating Officer, noted that she participated in a call recently with other charter finance peers and next year’s budget was a topic of great interest. Whereas in years past, the Governor’s proposal was considered "the floor," the Department of Elementary and Secondary Education (DESE) indicated that schools should anticipate the Governor’s proposal should be considered "the ceiling." Dignan also noted that tuition could be impacted significantly by lower district spend for the remainder of the year, as well as adjustment to the Foundation budget from lower anticipated state revenue due to COVID-19. Dignan is working through the budget and will share an update on the next Finance Committee meeting. Committee members also noted that the United States Congress passed the CARES Act but it is unclear what the level of impact will be on MA education funding.

Kevin Taylor, Chief Executive Officer, also noted that City on a Hill is still on track to bring the FY21 budget for Board approval in May and that the Finance Committee will be able to preview and comment on the budget prior to review by the entire Board.

At 4:50pm, the meeting was interrupted by Zoombombers and the meeting was disconnected. Committee members and guests reconnected at 5:00pm to adjourn the meeting.