Ms. Dias asked if there were any findings or recommendations in the audit, and Mr. Mackenzie said there were not. The Federal sIngle audit is still in progress. Mr. Leveille asked if there were any exceptions, and Mr. Mackenzie said no, but there were a few small items related to classifications. He did not see any control issues. Mr. Mackenzie reminded the group that he had participated in RISE Prep audits previously, most recently in 2019. Ms. Dias asked about potential vulnerabilities, and Mr. Mackenzie said no, only the Construction in Process account posed issues. Now that's wrapped up, things are more straightforward.

Mr. Mackenzie reviewed the new Lease accounting standards; leases longer than one year are to be treated similarly to a mortgage, as an asset that depreciates as well as a liability.

Mr. Leveille asks about the school's ERC application, and Mr. Mackenzie said that he was not involved in drafting it, and that there are older applications that the firm submitted that are still waiting. He let the group know that we could fill out a form granting PPA Power of Attorney in this matter, which would allow them to call the IRS on our behalf to inquire. He beleives it is likely we're in a manual review process out of Kansas City.

Mr. Mackenzie reviewed the statements and noted that the Statement of Activities says RISE has a $2.5mil gain, but that it is mostly going to the loan principal payment. 

Ms. Dias asked about the audit timeline and wondered why we are late. Mr. Mackenzie said the reason this time was due to late notification of winning the bid, but feels that the timeline should be longer regardless due to school breaks. Ms. Waller noted that she notified the previous audit partner, Cory Powers, who had left the firm, and it wasn't until she followed up with one of the firm partners that they realized they had won the bid.

Ms. Dias asked about the amount of the future local share, and Ms. Waller said that it's up to RISE to issue the quarterly enrollment bills using the correct rate.

The group discussed the year to date and noted that there was not much to report. The ERC refund will make a huge difference in cash, and if it doesn't come in, RISE will take a loss and reduce cash a decent amount. However, the school is in no danger of being unable to operate.