Mr. Yezukevich called the meeting to order at 8:00AM

There we no requests received.

Kristoffer Lane and Shawn Alexander of Daniel Dennis & Co., certified public accountants, appeared before the Committee and presented the Report on the Financial Statements as of and for the years ended June 30, 2023 and 2022. Mr. Lane stated that the school is in a very good financial position with no internal control issues and that management provided a “clean audit for the size of the school, the cleanest audits out of the twenty-two schools” he conducts. He added that the nature and extent of the financial activity of the Foundation was not significant to the School as a whole, and therefore was not included as a blended component unit of the School.

Discussion ensued. Mr. Yezukevich questioned, insofar as the Board and School have no direct control over the Foundation and therefore reporting is not included in the audit, does the same non-reporting obligation apply to parent 501(c)(3) non-profits affiliated with the School, but are independent of the School and of which the Board has no control. The non-profit conducts fundraising activities in support of the School, but does so under its own tax identification number. Mr. Lane stated that insofar as the School has no control over the extent of fundraising activities and the expenditure of funds and funds are raised on behalf of the school and not in the School name, the School is not required to include a report in its financial statements. If, however, the materiality of contributions exceeded $25K/year, the firm will consider monitoring these contributions going forward.

Mr. Lane continued his review of the audit including the following highlights:

• A portion of surplus income must be designated for approval by the Board for future capital expenditures.
• Data comparison among schools based on DESE benchmarks, but ratios can be included in the report at the suggestion of the Committee, i.e. percentage of program expenses paid directly from tuition and federal grants.
• Audit template used to perform calculations will be provided in order for the Committee to better assess status of finances with regard to capital projects.
• New GASB requirements with regard to reporting on multi-year assessments of tangible assets.
• Last year’s decline in student enrollment was offset by voluntary staff changes.
• Trend of declining student enrollment across districts and DESE’s response to crisis. 
• Following meeting with Board, Mr. Yezukevich will provide further feedback on the audit.