Ted Gildea, Committee Chair, directed the attention of the Committee to the Finance Update by City on a Hill's contract finance vendor, CentralSource. Cynthia Marie, CEO of CentralSource, walked the committee through the Statement of Activity, noting higher than projected revenue, which she reminded the Committee was due to ESSER Funds allocated to the School. 

She also mentioned, that while this revenue is higher, it has been reinvested in the School, particularly through technology purchases to support City on a Hill's 1:1 tech programming, outsourcing accounting and facilities management, and increased transportation costs. Marie invited the Committee to ask any questions they may have so far.

The Committee inquired as to if there is any possibility that the School will be reimbursed for the increased transportation costs. Marie confirmed that City on a Hill will be applying for reimbursement. Additionally, Sonya Pratt, Executive Director, explained that generally transportation costs are not directly shouldered by the School but due to external factors unique to the 2021-2022 school year, including bus and bus driver shortages in Boston, the School made the decision to move forward and be reimbursed later.

The Committee agreed that the Statement of Activity seems relatively unchanged from the previous meeting, and asked Marie to confirm that the financial position continued to remain positive and whether there were any concerns about having a small surplus following the related finding on the previous school year's audit. Marie shared that the financial position remains strong, that the modest surplus is correctly coded and is in compliance with standards, and the only open concern is the upcoming financing of the Foundation's mortgage on the School.

The Committee asked when discussions with the lender would begin and when it was due, and Pratt and Marie shared that the Bank is anticipating a conversation in the fall with the payment being due in FY2023-24. Marie also reminded the Committee that following the end of ESSER Funds in FY2023-24, increased enrollment will be required to sustain the School and that she and Pratt have begun the work of creating preliminary financial models for multiple years out with known factors. Pratt confirmed that enrollment continues to be a top priority for management, and is being discussed in concert with discussion about construction.

Gildea then directed the attention of the Committee to the FY22 Audit. Marie shared that CoaH shared a Request for Proposal (RFP) for new auditors, as City on a Hill's previous auditors, AAFCPAs, is ineligible to audit the School as there was a period in which they were the Schools accountants in the current school year. She shared that Daniel Dennis CPAs were the only firm to submit despite follow-up with several firms.

The Committee inquired as to how Daniel Dennis' proposal lined up with AAF CPAs, and Marie confirmed that there would be a savings based on this shift. The Committee also asked to confirm whether the School will have a federal audit, and management confirmed that it would be.