• Main Check Register – Disbursements
  • The presenter reviewed the primary check register, which contains all accounts payable and operational disbursements for the month.
  • Total payments issued: 168
  • ACH transactions: 76
  • Checks issued: 92
  • The finance department is actively transitioning vendors from paper checks to ACH payments.
  • Some vendors have shown hesitation in adopting ACH, largely due to unfamiliarity and the requirement to complete and sign ACH authorization forms.
  • To facilitate the transition:
    • An ACH authorization form has been created and distributed to vendors.
    • Standard operating procedures have been developed and implemented within the finance team to support the process.
  • ACH payments provide the advantage of faster processing, typically depositing funds into vendor accounts the next business day.
  • Total disbursements for January 2026: $1,006,767.92.
• Security and Event-Related Expenditures
  • The Board requested clarification regarding a $2,953 payment for police services related to an athletic event.
  • The presenter confirmed the payment was associated with security coverage at a football game.
  • The service included:
    • Four police officers
    • Approximately six hours of coverage
    • Additional supervisory or support personnel.
  • The Board discussed the timing of billing, noting that invoices for such services may arrive one to two months after the event.
• Campus Security Services
  • The Board also reviewed expenditures related to campus security services.
  • Total payment noted: approximately $57,046 covering a recent billing period.
  • This equates to approximately $55,000 per month on average for campus security.
  • Board members expressed interest in reviewing security service contracts and vendor arrangements in the future to determine whether operational efficiencies or cost reductions may be possible.
  • During discussion, Board members emphasized that any cost-saving measures should prioritize maintaining instructional staffing, particularly teachers, and minimizing impacts on classroom resources.
• ASB Trust Account
  • The presenter reviewed the Associated Student Body (ASB) Trust Account activity.
  • Total payments issued: $66,783.89
  • Number of payments: 42
  • All payments were issued via checks.
  • Similar to the main account, efforts are underway to transition ASB vendors to ACH payments once banking setup and vendor authorizations are completed.
• Fundraising and General Accounts
  • The Board reviewed additional operational accounts:
  • Fundraising Account
    • Contains recurring vendors associated with fundraising and event activities.
    • Vendors such as Chartwells are regularly used for catering or event-related expenses.
  • General Account
    • Includes recurring operational expenditures, including:
      • System services
      • Charter-related services
      • Legal services such as LegalShield
      • Other standard operational subscriptions or contractual obligations.
• Board Discussion
  • Board members asked clarifying questions regarding:
    • Event security expenditures.
    • Campus security costs.
    • Vendor payment practices.
  • The finance team confirmed that detailed reports and invoices can be provided for further review if requested.
  • Discussion highlighted the Board’s priority of carefully monitoring vendor expenditures while ensuring that instructional staff and student services remain protected

• 1. Credit Card Charges – Mr. David
  • Total charges for January 2026: $14,186.02.
  • Spending was primarily concentrated in three major operational areas, with additional smaller administrative expenses.
  • Major Spending Categories
    • Marketing: $4,003.03
      • Enrollment-related advertising and promotional activities.
    • VAPA (Visual and Performing Arts):
      • Student program support, including travel and performance-related expenses.
    • Technology: $1,310
      • Cloud services, indexing tools, and software subscriptions supporting operational systems.
    • Administrative Compliance:
      • Expenses related to Form 700 filings, board meeting deliveries, and administrative operational needs.
    • Athletics: $3,198
      • Purchase of sports tracking cameras and related equipment.
  • Compliance Review
    • All purchases:
      • Followed internal purchasing procedures.
      • Were supported by approved purchase orders.
      • Aligned with approved departmental budgets.
    • No exceptions or irregularities were identified for this reporting period.
• 2. Credit Card Charges – Fernando Delgado
  • Total charges for January 2026: $19,979.94.
  • Total number of transactions: 27.
  • Departments Associated with Charges
    • Technology
    • Operations
    • Athletics
    • VAPA (Visual and Performing Arts)
    • General Administration
    • Student Counseling
    • Marketing
  • Notable Expenditures
    • Hilton Anaheim:
      • Expenses related to VAPA and drama student travel and program participation.
    • Professional Development Lunch:
      • $2,110.21 for staff professional development event at California Pizza Kitchen.
    • Athletic Training Department Improvements:
      • $1,097.31 for flooring related to the athletic training area.
  • Compliance Review
    • All expenses were verified to:
      • Align with approved purchase orders and budget allocations.
      • Follow established approval and purchasing protocols.
    • No irregularities or exceptions were identified.
• 3. Board Discussion
  • Board members asked clarifying questions regarding purchase order requirements and approval procedures.
  • The finance team confirmed that:
    • Purchase orders are required and obtained prior to purchases.
    • Credit card charges are reconciled against approved POs and departmental budgets.

• 1. Public Transparency Notice
  • A Board member, Mr. Wright, noted that the Second Interim Report and supporting documents are public information.
  • Community members may access the report through the school’s website as part of the Board meeting materials.
  • Emphasis was placed on maintaining financial transparency and public accessibility of financial reports.
• 2. Overview of the Second Interim Report
  • The report was compiled into a PowerPoint presentation summarizing the financial status for the 2025–2026 fiscal year.
  • The presentation serves as a mid-year progress update, providing insight into:
    • Current revenues and expenditures
    • Budget variances
    • Financial stability and reserve levels
• 3. High-Level Financial Position
  • Total projected revenues: Approximately $50 million.
  • Total projected expenditures: Approximately $50.8 million.
  • Projected deficit: Approximately $105,000.
  • The deficit is considered manageable due to a strong beginning reserve balance.
  • Beginning Net Position (Reserve): Approximately $50.1 million.
  • Projected Ending Net Position: Approximately $50.03 million.
  • The reserve balance continues to support overall financial stability despite minor deficit spending.
• 4. Revenue Analysis
  • The presenter provided a breakdown of the school’s primary revenue sources.
  • Local Control Funding Formula (LCFF)
    • Total funding: Approximately $34.9 million.
    • LCFF remains the largest and primary funding source, determined primarily by student attendance and enrollment.
  • Federal Revenues
    • Total: Approximately $2.02 million.
    • Supports programs including:
      • Child Nutrition programs
      • Title I funding under the Every Student Succeeds Act (ESSA).
  • State Revenues
    • Total: Approximately $4.51 million.
    • Increase attributed to:
      • Mandated cost reimbursements
      • Nutrition program funding
      • Lottery allocations.
  • Local Revenues
    • Total: Approximately $8.6 million.
    • Represents a 37.8% increase, driven by:
      • Interagency contracts
      • Fee adjustments
      • Investment-related income.
• 5. Expenditure Analysis
  • Total projected expenditures: Approximately $50,801,000.
  • Major expenditure categories include:
  • Certificated Salaries
    • $18.55 million, representing the largest expenditure category.
    • Reflects the organization’s commitment to maintaining strong instructional staffing and educational quality.
  • Classified Salaries
    • $6.77 million.
    • Increases attributed to:
      • Expanded operational support roles
      • Approximately 15% salary adjustments in certain positions.
  • Employee Benefits
    • $9.14 million.
    • Costs continue to rise due to:
      • Healthcare premiums
      • State retirement system contribution rates
      • Payroll-related obligations.
  • Depreciation and Amortization
    • $331,000 projected, representing a 63% increase.
    • Increase reflects:
      • Acquisition of new capital assets
      • Updated amortization schedules for existing equipment.
  • 6. Key Financial Variances
    • Several notable financial changes were identified in the Second Interim Report.
    • Revenue Variances
      • Other State Revenues increased by 40.6% due to:
        • Higher mandated cost reimbursements
        • Expanded lottery allocations
        • Additional state program funding.
      • Local Revenues increased by 37.8% due to:
        • Interagency agreements
        • Fee adjustments
        • Additional funding partnerships.
      • These increases helped offset potential deficits and improve the overall financial position.
    • Expenditure Variances
      • Spending in books, supplies, and instructional materials exceeded the original budget.
      • Additional expenditures included:
        • Technology equipment
        • Operational services
        • Instructional and classroom materials.
  • 7. Net Position and Reserve Analysis
    • The financial report showed the adjusted beginning net position at approximately $50,136,751.96.
    • The projected ending net position is approximately $50,031,006.
    • Despite deficit spending of approximately $105,000, the school maintains a healthy reserve balance.
    • The reserve is considered sufficient to absorb minor budget fluctuations and maintain financial stability.
  • 8. Financial Outlook
    • The presenter emphasized that the school’s long-term financial outlook remains stable, but several key factors will influence future financial health:
      • Maintaining stable enrollment levels.
      • Continuing to secure grants and additional funding opportunities.
      • Ensuring cost-effective operational practices.
    • The Second Interim Report provides a foundation for upcoming budgeting discussions, including:
      • Next fiscal year’s budget planning.
      • Multi-year financial projections.
  • 9. Board Discussion
    • The presenter invited questions from Board members.
    • No questions were raised by the Board following the presentation.

• 1. Overview of the Independent Audit
  • The annual audit was conducted by external auditors from Christy White Associates.
  • The audit provides an independent evaluation of the organization’s financial health, internal controls, and compliance with applicable regulations.
  • The audit process included:
    • Review of financial statements
    • Examination of accounting practices
    • Testing of internal controls
    • Verification of compliance with state and federal requirements.
  • The Business Department was responsible for:
    • Preparing financial statements
    • Designing and maintaining internal financial controls
    • Providing documentation required by the auditors.
  • The auditors’ role was to provide an independent professional opinion regarding whether the financial statements are accurate and fairly presented.
• 2. Documentation and Records Reviewed
  • To complete the audit, the auditors requested and reviewed a range of documentation, including:
    • Financial accounting statements
    • Approved budgets
    • Cash flow forecasts
    • Organizational structure documentation
    • Internal accounting records
    • Supporting financial transactions and reports
  • These records allowed the auditors to verify financial accuracy and evaluate the effectiveness of internal control systems.
• 3. Audit Opinion (Headline Result)
  • The organization received an “Unmodified Opinion.”
  • An Unmodified Opinion is:
    • The highest and most favorable audit result.
    • Often considered the “gold standard” in financial auditing.
  • This result indicates that:
    • The financial statements present fairly, in all material respects, the financial position of the organization.
    • The organization’s accounting practices comply with applicable standards and regulations.
  • The presenter noted that this outcome represents the best possible result an organization can receive in an external audit.
• 4. Internal Control and Operational Testing
  • In addition to reviewing financial statements, the auditors also examined operational procedures, including:
    • Cash handling procedures
  • Internal Control and Operational Testing (continued)
    • Payroll processes
    • Journal entries
    • Financial transaction documentation
    • The testing confirmed that:
      • Internal financial safeguards are effective and functioning properly.
      • Systems used to manage public funds are reliable and appropriately controlled.
    • Result:
      • Another Unmodified Opinion regarding internal control systems.
• 5. Compliance with Federal and State Requirements
  • Because the organization receives federal and state funding, additional compliance testing was conducted.
  • The auditors reviewed:
    • Federal grant compliance
    • State funding requirements
    • Program spending procedures
    • Reporting accuracy for government programs.
  • Results:
    • The organization met all requirements under the California K–12 Audit Guide.
    • Zero audit findings were reported.
  • This reflects strong financial management and regulatory compliance.
• 6. Additional Independent Auditor Reports
  • The audit also included additional reports detailing:
    • The procedures performed by the auditors
    • Testing methodologies used
    • Evaluation of financial transactions and systems.
  • All testing resulted in the same conclusion: an Unmodified Opinion.
• 7. Audit Summary Scorecard
  • The presenter described the final audit results as a “clean sweep.”
  • Across all categories, the organization received Unmodified Opinions, including:
    • Financial Statements
    • Federal Awards
    • State Awards
  • Key outcomes reported:
    • No material weaknesses identified
    • No significant deficiencies reported
    • No instances of non-compliance
  • These results demonstrate that the organization is fully compliant with financial governance standards for public education institutions.
• 8. Management Letter and Additional Audit Notes
  • Additional observations from the auditors included:
  • No Disagreements with Management
    • The auditors reported no disagreements with the organization’s management or accounting practices.
    • Financial treatments and accounting decisions were fully aligned with auditing standards.
  • Consistency in Accounting Estimates
    • Significant accounting estimates, such as asset and liability valuations, were found to be:
      • Reasonable
  • Management Letter and Additional Audit Notes (continued)
    • Consistency in Accounting Estimates
      • Consistent with prior fiscal years.
      • This consistency reflects stable financial management practices.
• 9. Audit Timeframe and Ongoing Improvements
  • The audit represents a financial snapshot of the organization as of June 30, 2025.
  • Although the audit results were overwhelmingly positive, the organization will continue to:
    • Improve internal controls
    • Strengthen financial systems
    • Maintain strong compliance practices.
• 10. Overall Conclusion
  • The 2024–2025 Independent School Audit confirms that the organization maintains strong financial integrity and compliance with all regulatory requirements.
  • The Unmodified Opinion across all audit categories represents the strongest validation of the organization’s financial management practices.
  • These results demonstrate that the organization operates with high standards of fiscal accountability, transparency, and internal control.

• 1. Overview of the Fee-for-Service Agreement
  • The Executive Director presented the proposal to continue contracting with the Los Angeles School Police Department for the 2026–2027 school year.
  • The structure of the agreement remains consistent with the prior year’s arrangement.
  • Service Details:
    • Total service days: 220 days per school year.
    • Schedule: Officer assigned 10 hours per day on campus.
    • Purpose: Provide on-site law enforcement presence and support for campus safety.
• 2. Cost of Services
  • Total projected cost for 2026–2027: $201,112.
  • The cost reflects a rate increase compared with the previous year.
  • Rate Adjustment:
    • Increase estimated at approximately 3% compared to the prior year’s cost.
    • Previous annual cost was reported to be approximately $195,000–$196,000.
    • Administration noted that the increase is relatively modest and in line with typical service adjustments, particularly compared to larger increases seen in other service contracts.
• 3. Rationale for Maintaining the Officer
  • Administration emphasized the benefits of having a dedicated school police officer on campus, including:
    • Immediate law enforcement presence.
    • Enhanced campus safety and security.
    • Strong coordination with the Los Angeles School Police Department.
  • It was also noted that having an assigned officer provides access to broader departmental resources in the event of an emergency or serious incident.
• 4. Board Discussion and Considerations
  • During discussion, a Board member expressed both support for the officer’s presence and concern regarding overall costs.
  • Key points raised included:
    • The Board member acknowledged positive experiences with the assigned officer and the value of having a law enforcement presence.
    • However, concerns were raised regarding:
      • The overall cost of the contract.
      • The return on investment relative to other security expenditures.
      • The need to evaluate how this cost compares with other schools’ security models.
• 5. Budget and Staffing Considerations
  • The Board member emphasized the importance of protecting staff positions and maintaining adequate staffing levels within the organization.
  • Concerns were expressed about balancing:
    • Security expenditures
    • Staffing needs
    • Student-to-teacher ratios.
  • The Board member indicated interest in further reviewing the issue with the Safety Committee or Safety Board to ensure the organization is allocating resources efficiently.
• 6. Future Review and Flexibility
  • It was noted that if circumstances change or financial pressures increase, the Board could revisit the agreement in the future.
  • The Board member emphasized the importance of exploring cost-saving strategies where possible to avoid reductions in personnel.
• 7. Administrative Response
  • Administration reiterated that the partnership with the Los Angeles School Police Department provides:
    • Reliable on-campus security.
    • Immediate access to broader law enforcement resources if needed.
  • This relationship was presented as an important safety benefit for the school community.
• 8. Conclusion of Discussion
  • The comments presented were expressed as personal considerations for future discussion, rather than a final determination.
  • The Board member clarified that the final decision rests with the Board as a whole.

1. Overview of the Freshman Device Program

• Administration presented the annual procurement of devices for incoming freshmen students.
• The devices are intended to support instructional technology integration across multiple subject areas, including:
  • Elective courses
  • Mathematics classes
  • Digital note-taking and coursework.
• The devices selected are 2-in-1 convertible laptops, allowing students to use them as both:
  • A laptop for coursework
  • A tablet-style device for note-taking and classroom use.
• Administration reported that this device model has performed well in previous years, providing flexibility and reliability for students and teachers.
• 2. Device Model and Repair Capability
  • The school continues to use the same make and model previously adopted, ensuring compatibility with existing systems and programs.
  • An additional advantage noted was that the school operates a certified repair center for Lenovo devices, allowing the technology department to:
    • Conduct repairs on-site
    • Reduce repair turnaround times
    • Receive reimbursement for certain repair services and related taxes.
  • This capability contributes to cost efficiency and operational sustainability for the technology program.
• 3. Procurement Process
  • The administration conducted a competitive procurement process, obtaining three separate vendor quotes.
  • The lowest-cost vendor identified was GST.
  • Selected Vendor:
    • GST
  • Quoted Price Per Device:
    • $448.53 per unit
  • Total Estimated Cost:
    • $491,187.24
  • The purchase will be made through a national purchasing agreement, which allows the school to obtain discounted pricing through cooperative purchasing arrangements.
  • Selecting GST over purchasing directly from Lenovo resulted in approximately $100 in savings per hardware unit.
• 4. Quantity of Devices
  • Administration proposed purchasing up to 750 devices for incoming freshmen.
  • The final quantity may be adjusted depending on actual enrollment numbers.
  • The 750-unit estimate is based on projected enrollment and planning needs.
• 5. Enrollment Flexibility
  • A Board member asked how the purchase would be handled if actual enrollment in August is lower than projected.
  • Administration responded:
    • The 750-device estimate is intended as a reasonable planning estimate.
    • Efforts will be made to “right-size” the order as closely as possible to actual enrollment projections.
    • If additional devices remain unused, they can still be utilized for:
      • Substitute teacher devices
      • Student loaner devices
      • Replacement units
      • Transfers or late-enrolling students
      • Additional grade-level needs.
    • Administration emphasized that the purchase is not excessive compared to anticipated needs, noting that the order is well within expected demand.
• 6. Procurement Timing and Urgency
  • Administration noted that the vendor quotes are nearing expiration.
  • Approval is needed promptly in order to:
    • Secure current pricing
    • Ensure timely delivery of devices before the start of the school year.
  • The technology market is experiencing supply chain pressures, with vendors indicating that inventory availability may become limited if orders are delayed.
• 7. Technology Program Benefits
  • The device program supports several operational and academic objectives, including:
    • Strengthening digital learning infrastructure.
    • Ensuring consistent device access for all freshmen students.
    • Supporting technology-based learning strategies.
    • Maintaining a standardized device environment for easier support and maintenance.

• 1. Overview of the Food Service Contract
  • The school has partnered with Chartwells for approximately four years under the current contract arrangement.
  • The upcoming 2026–2027 school year represents the final year of the five-year contract term, including extensions allowed under the agreement.
• 2. Future Procurement Requirement
  • Administration informed the Board that the school will be required to conduct a formal Request for Proposals (RFP) process for food service operations after the upcoming school year.
  • The RFP process will allow the school to evaluate potential vendors and ensure compliance with procurement regulations.
  • The current renewal therefore represents:
    • The final contract year before the competitive bidding process begins.
• 3. Performance of the Current Vendor
  • Administration reported that Chartwells’ performance has been generally positive during the term of the contract.
  • Operational highlights include:
    • The cafeteria program has been financially sustainable.
    • The school has generated revenue from cafeteria operations, which helps:
      • Offset operational costs
      • Support food service program expenses.
  • Board members expressed general satisfaction with cafeteria operations and staff performance.
• 4. Feedback on Cafeteria Staff
  • Positive feedback was shared regarding cafeteria staff members, particularly one staff member who was described as providing a positive and welcoming presence for students.
  • The staff’s engagement with students was recognized as contributing to a supportive cafeteria environment.
• 5. Financial Oversight and Contract Monitoring
  • The Board discussed the importance of carefully reviewing vendor pricing and contract terms.
  • Administration confirmed that the school has recently closely reviewed Chartwells’ billing practices, particularly regarding cost calculations and invoice formulas.
  • Key actions taken included:
    • Requesting additional itemization and clarification of charges.
    • Temporarily holding certain invoices until detailed explanations were provided.
    • Conducting meetings with the vendor to review cost calculations.
• 6. Vendor Billing Adjustments
  • Through the review process, administration identified discrepancies in how some costs were calculated.
  • After discussions with Chartwells:
    • The vendor acknowledged issues with certain billing formulas.
    • Adjustments were made to address the discrepancies.
    • The school received a credit/refund for prior overcharges.
  • Administration noted that these corrections will ensure more accurate billing going forward.
• 7. Commitment to Fiscal Responsibility
  • The CBO emphasized that the administration is carefully reviewing all expenditures and vendor contracts to ensure fiscal accountability.
  • The goal is to ensure that the school is paying appropriate and justified costs for contracted services.
  • Board members reiterated the importance of scrutinizing every dollar spent, particularly in service contracts.