Board Chair Rodolfo announced agenda items Business item C. Review and Consideration of Approval of AMPS Salary Band Update 2025-2026 and Business item F. Review and Consideration of Approval of Board Member Resolution- Peter Hanley will be pulled from the agenda and moved to the upcoming regularly scheduled board meeting.

No public comments.

The board returned from closed session at 7:00pm and there were no reportable actions.

Kimberly, Senior Director of Finance, presented the preliminary financial plan and budget preparation for the 2025-2026 fiscal year. She outlined several key revisions that will serve as guidelines for building the official budget. One of the main updates is the 2.30% Cost of Living Adjustment (COLA) which came lower in than earlier state projections. This adjustment will be used in conjunction with enrollment numbers to revise school site budgets accordingly. Kimberly also noted an LCFF (Local Control Funding Formula) deferral, but reassured that this will not negatively impact AMPS, as all school sites are currently in a strong cash position. Additional funding sources include an increase in the Expanded Learning Opportunities Program (ELOP) grant, which will support after-school and summer programs. In the upcoming year, AMPS will also receive the Student Support and Professional Development Block Grant and a Learning Recovery Grant. She shares Local Education Agencies (LEAs) are encouraged to exercise caution in developing their 2025-26 budgets. Maintaining sufficient reserves and avoiding deficit spending will be critical. Given the uncertain economic outlook, thoughtful financial planning is essential to reduce the risk of receiving a qualified or negative interim certification. She shares school sites are advised to budget conservatively to minimize fluctuations when submitting interim reports, unaudited actuals, and other financial documentation. The internal finance team will submit these numbers to Charter Impact, and will bring forward a proposed budget to the Board.

Adrienne, Interim CEO, added that there is tension on charter schools that maintain large fund balances. Especially in light of deferrals, she strongly recommends that charter schools continue to hold substantial reserves for precisely these reasons. Unlike school districts, which benefit from larger fiscal cushions such as the ability to use prior-year ADA, charter schools are more vulnerable to deferrals.

Kimberly, Senior Director of Finance, presented the Third Interim Financial Report for RCA, as requested by WCCUSD. This report offers a snapshot of the Second Interim Report submitted in February, with year-to-date actuals reflecting financial activity through the end of March. The finance team is currently working on closing the books for April. In collaboration with Charter Impact, the team adjusted various line items to reflect updated figures. Total revenue has decreased, largely due to lower than anticipated funding from ESSER funds. On the expense side, there was a reduction in prior year lottery allocations under state revenue. There is about a $60,000 reduction in projected expenses. 

Adrienne, Interim CEO, clarified that a Third Interim Report is typically only required when a school has received a negative certification, indicating it cannot meet financial obligations over the current and following two fiscal years. However, RCA does not have a negative certification and can meet its financial obligations for the current year and the next two years. The report was prepared solely because the authorizer requested its submission. A major change from the Second Interim was in depreciation. The Second Interim covered financials through January 31. Due to the late submission of the 2023-2024 audit, AMPS received updated depreciation in the 2023-2024 audit that came after the second interim submission.  Adrienne also noted a projected drop in other local revenues in 2026-2027, as certain funding sources are set to expire. Both the 2025-2026 and 2026-2027 projections are based on an enrollment increase to 330 students, up from the current self-imposed cap of 300. This increase is considered highly achievable due to a strong student waitlist.

Board chair Rodolfo thanks the finance team and looks forward to the end of year report once the books are closed.

Adrienne, Interim CEO presented the Third Lease Extension Amendment for OCHS. Originally, the OCHS lease was aligned with the school's charter term. However, as the team is currently engaged in the charter appeal process a final decision is not expected until September. AMPS requested a three-month lease extension from the landlord. The amendment includes a 3% increase in rent, while all other terms of the lease remain unchanged.

Board Member Margie and Board Chair Rodolfo expressed their gratitude to the landlord for accommodating the lease extension and supporting the school during this transitional period.

Adrienne, Interim CEO, presented the response letter to the California Department of Education (CDE) regarding a letter of concern received for JHHS. The concern centers around a repeat audit finding related to a material weakness in internal controls. The letter from the CDE specifically raised two questions related to internal controls. Adrienne explained that significant changes have been made to strengthen financial oversight, including the restructuring and expansion of the finance team. For the past two years, AMPS operated without a Director of Finance; that position has now been filled. In addition, AMPS engaged a new back office provider, Charter Impact, to further enhance financial operations. The response letter to the CDE outlines these key changes and includes a copy of AMPS’s fiscal policies and procedures. The CDE also requested evidence of internal staff training, which has been provided. The letter requires formal board approval before submission.

Board Chair Rodolfo thanked Adrienne and the team for their swift response, their presentation of the letter to the board for review and approval, and for their ongoing dedication and hard work.

Board Member Margie inquired about the duration of AMPS’s engagement with Charter Impact.

Adrienne responded that the contract with Charter Impact was signed in April 2024, with official services beginning on July 1, 2024, to align with the start of the 2024–2025 school year. However, Charter Impact began supporting AMPS earlier than the official start date to assist with the budgeting process.