J. Bull, auditor from PFK O'connor, went over the school's 2025 audit. 

She went over cash flow and mentioned we are in a good cash flow position. 

The Status on our Audit: the significant audit areas have been addressed and substantive audit works is completed.

The school's dependence to grants: 80% of assistance to the school came from grants. If the grants go away, it could negatively impact the school. 

Remaining Open Items:

• Final approval by the TCWG
• Completion of Agreed Upon Procedures
• Signed management representation letter to be obtained
• Prepare tax return Form 990 for management and Board review- this has been extended and now due in May but per discussion of the finance committee we will work on getting this done by February. 

An ongoing concern for the auditors: They evaluate the school and report the school will continue for the next year. 

Significant Risks- improper revenue recognition, management override of internal controls and management obscuring/ making misleading disclosures.

During the audit there were no disagreements with management. 

Once audit is complete the 990 can get started. D. Zieff and B. Chan discussed setting a deadline for the 990 so that we can do more fundraising for the school.

J. Bull, went over journal entries and discussed this with our board of directors in our finance committee.

Journal Entry 1- To adjust ROU asset and ROU liability for Operating and Finances Leases.

Journal Entry 2- In Kind Services recorded 

Journal Entry 3- 21st Century grant revenue/ receivable adjustment of about 23,000 which can affect the bottom line.

Journal Entry 4- Client provides entry to write off old deposits and true up account.

Journal Entry 5- Move transportation expense form in-kind transportation

J. Bull states we started with 69,000 profit and adjustments turn it into 43,000. Most of it was adjustment to leases. 22 net items are items that Ben provided to PFK. 

J. Bull reports the representation letter needs to be signed by B. Chan, CFO and D. Zieff, Board Treasurer. 

D. Zieff reports that for 5 months are revenue was 4.9 Million dollars. 60k less than we budgeted. We are about a 70k loss for 5 months.

For commissioners network, we have about 250k for the year. We do a lot of stipends so we upfront a lot of that money. 

The rest of financial position will be shared with the board of directors during the board meeting.

Please review documents in agenda. This was not discussed due to the audit taking place this month.

The Knowlton needs to be added as a new vendor. This will be brought up during board meeting. 

No additional items.