Mr. Hussey led the Pledge of Allegiance.

Mrs. Rodriguez confirmed that there were no requests for public comment.

Enrollment Update

• Current enrollment stands at 2,827 students
• Includes 69 foreign exchange students
• Month 7 (recently closed):
  • Shows a net loss of 7 students
• Enrollment has been fluctuating throughout the year
• Discussion referenced prior figures, indicating some confusion or inconsistency in earlier reported totals
• Administration will continue monitoring enrollment trends closely, especially approaching the final quarter

Attendance & Funding (P2 Reporting)

• P2 reporting identified as a critical upcoming milestone
• Covers Months 1–8
• Determines a significant portion of state funding
• Report submission expected by the end of the month
• Emphasis on accuracy and stability of data due to financial impact

LCAP Development (2026–2027 School Year)

• LCAP (Local Control and Accountability Plan) development has officially started
• Business team is:
  • Meeting with teachers and departments
  • Collecting input to align priorities with school needs
• Goal is to ensure strategic alignment between funding and program goals

Financial Tracking & Transparency Improvements

• Development of a matrix dashboard to:
  • Track spending
  • Monitor program progress
  • Provide a centralized view for decision-making
• Accounting team is working to:
  • Strengthen spend management
  • Improve project tracking systems
  • Focus on more precise documentation of LCAP expenditures throughout the year

Staff Feedback & Response

• Staff have requested:
  • Greater clarity
  • Improved transparency in financial reporting
  • Clear comparison between:
    • Budgeted amounts
    • Actual expenditures
• Current improvements are designed to address these concerns directly

OPEB Trust Performance (March 2026)

• Ending Balance (March 31, 2026):
  • Approximately $34.4 million ($34,402,558)
• Monthly Performance:
  • 5.6% decline for March
  • Decline reflects market-driven losses, not operational issues

Market Conditions & Key Drivers

• March described as a difficult month across capital markets
• Key contributing factors:
  • Equity market decline
  • S&P 500 fell approximately 5% in March
  • Represents the worst quarterly performance since Q3 2022
  • External/global conditions (e.g., geopolitical factors) noted as influencing volatility

Fiscal Year-to-Date (FYTD) Performance

• Despite March losses:
  • OPEB Trust remains +3.0% FYTD
• Performance is:
  • Aligned with policy benchmarks
  • Still considered stable over the long term

Manager Performance Summary

• OPEB Trust (Fiduciary Management):
  • March: -8.3%
  • FYTD: -12.5%
• Beacon Pointe (OPEB Account):
  • March: -5.4%
  • FYTD: +4.3%
• General Investment Accounts:
  • Fiduciary Management:
    • March: -8.3%
  • Beacon Pointe:
    • March: -3.6%
    • FYTD: +5.6%

Portfolio Value Context

• Total investment portfolio value:
  • $42.5 million as of March 31, 2026
• Increased from $41.6 million on July 1, 2025
• Indicates overall growth despite recent monthly decline

Next Steps & Recommendations

• Staff and Beacon Pointe will:
  • Continue monitoring portfolio performance
  • Ensure alignment with the Investment Policy Statement (IPS)
• Any proposed changes to:
  • Asset allocation
  • Investment managers
  • Will be brought to the Board for formal review
• Ongoing focus on:
  • OPEB performance gap tracking
  • Maintaining long-term investment stability

March 2026 Financial Update
Presenter: Mr. Delgado, Chief Business Officer (CBO)

April 2026 Investment Outlook

• Market Conditions (Early April)
  • Markets have shown initial signs of recovery following March declines
  • Improved sentiment driven by:
    • Potential easing of geopolitical tensions
  • However:
    • Volatility remains elevated
    • Overall environment still uncertain
• Advisor Insight – Beacon Pointe Advisors
  • Portfolio remains:
    • Well-diversified
    • Aligned with long-term Investment Policy
  • Short-term fluctuations are expected within current market conditions

Recommended Actions

• No changes recommended at this time to:
  • Investment Policy
  • Asset Allocation
• March decline:
  • Consistent with broad market performance
  • Portfolio diversification functioned as intended
  • Notably supported by alternative investments allocation

Monitoring Priorities for the Board

1. Manager Performance Comparison
   • Continue tracking performance differential between:
     • Beacon Pointe Advisors
     • Fiduciary Management
   • If gap persists through fiscal year-end:
     • Staff will recommend a formal review of Fiduciary Management relationship
2. April Market Rebound
   • Monitor whether early recovery sustains or weakens
   • Key external risks:
     • Trade policy developments
     • Interest rate expectations
     • Ongoing geopolitical conditions
3. Upcoming Quarterly Review
   • Next quarterly portfolio review with Beacon Pointe will:
     • Provide clearer insight into recovery trajectory
     • Identify any needed tactical adjustments

Overall Position

• Portfolio remains:
  • Stable in structure
  • Strategically aligned for long-term performance
• Current approach emphasizes:
  • Monitoring over immediate action
  • Maintaining discipline amid short-term volatility

Budget Development (2026–2027)

• Entering budget development season for the upcoming fiscal year
• Two major variables must be finalized before building spending assumptions:
  • P2 reporting (attendance-based funding)
  • Revenue projections tied to enrollment/ADA
• P2 data (Months 1–8) will be finalized by the end of the month
• Once P2 is confirmed:
  • The team will refine the assumption sheet
  • Allows for more accurate forecasting and budget planning
• Emphasis on:
  • Data-driven budgeting
  • Avoiding premature assumptions before final funding figures are known

Investment Update Integration

• Referenced the March 2026 investment performance:
  • OPEB Trust declined by 5.6% in March

Financial Reporting & Presentation Approach

• Introduced a new approach to financial reporting for the Board
• First time incorporating a PowerPoint presentation format
• Current reporting formats being tested:
  • Dashboard-style visuals
  • PowerPoint presentations
  • Executive summaries
• Goal:
  • Determine which format is most effective and accessible for Board members
• A two-page high-level summary was also provided:
  • Designed for quick reference and clarity
  • Complements more detailed reports

Board Engagement & Feedback

• Board members were invited to:
  • Share preferences on reporting format
  • Provide input on what is easiest to understand and most useful
• CBO emphasized flexibility:
  • Will adjust reporting style based on Board guidance

Presenters:
Mr. Delgado, Chief Business Officer (CBO)
Janneyra Verduzco, Director of Accounting and Finance

Main Check Register (General Payables)

• Serves as the primary account for issuing payables
• Dashboard includes a highlight of highest vendor payments for transparency
• Notable expense:
  • $299,700.28 paid to Avery Jones Educational Solutions
  • For laptop purchases (accounted in April)
• Additional expenditures:
  • Multiple Amazon purchases, categorized by department
• Payment activity:
  • 79 ACH payments issued
  • 122 checks issued
  • ~200 total payments processed monthly
• Recurring vendors mentioned:
  • Charter
  • Wallace
  • Super Subs

AP – ASB Trust Account (Student Activity Funds)

• Used for student-related transactions and activities
• Payment activity:
  • 48 checks issued
• Vendors include:
  • HD Print & Design
  • Picture Perfect Graphics
  • GNG (student supply vendor)
  • Legacy Awards
  • SoCal Flowers
• Example expense:
  • Purchase of flowers for a student event

Fundraising Account

• Minimal activity:
  • Single recurring check issued
• Vendor:
  • Charcoals Division
• Purpose:
  • Weekly purchase of bagels and cream cheese (every Wednesday)
• Supplies appear to be procured in bulk for the year

General Account (Recurring Expenses)

• Covers ongoing operational payables
• Recurring vendors/services include:
  • Charter
  • Save (likely services/subscriptions)
  • Spencer
  • Purchase Power
  • AVID
  • LegalShield

Additional Notes

• Expenses are organized and sortable by payee for easier tracking
• Emphasis on recurring payments and operational consistency
• No concerns or questions were raised following the presentation

Presenters:
Mr. Delgado, Chief Business Officer (CBO)
Janneyra Verduzco, Director of Accounting and Finance

Oversight and Review Process

• A detailed audit and review is conducted for all credit card transactions
• Focus on cards issued to:
  • Mr. Hussey
  • Mr. Delgado
• Each transaction includes:
  • Supporting purchase orders
  • Formal approval documentation
  • Identification of:
    • Requesting individual
    • Department
    • Associated account or funding source
• Ongoing improvements:
  • Enhancing transaction descriptions to include:
    • Purpose of expense
    • Number of students involved
    • Business justification (especially for travel)

Documentation Clarification

• A missing description was identified for:
  • DigiCert charge
• Clarified as payment for an SSL certificate
• Noted need to ensure complete and consistent descriptions for all entries

Mr. Hussey’s Credit Card Summary

• Total charges: $47,093.92
• All transactions:
  • Reviewed and verified
  • Properly documented with purchase orders and approvals

Mr. Delgado’s (Fernando’s) Credit Card Summary

• Total charges: $47,321.25
• Key expenses include:
  • Courtyard San Diego trip
    • Related to Robotics program
    • Charged to appropriate robotics trust account
  • Indeed (HR expenses)
    • Recruitment-related costs
  • Six Flags Magic Mountain
    • Associated with STEP Nationals event
• Travel activity:
  • Students recently attended a national championship in Pensacola, Florida
  • 45 students participated
  • Anticipated reimbursement for trip expenses

Contested Charge

• A $2.49 charge was flagged as contested:
  • Likely related to a Google charge
  • Reviewed and acknowledged during discussion

Additional Notes

• Continued emphasis on:
  • Transparency and accountability in credit card usage
  • Clear linkage between expenses and student programs or operational needs
• No further questions or concerns were raised following clarification

Filing Timeline & Process

• Official IRS deadline: November, but organization files an extension (Form 8868) to May 15
• Board meeting scheduled before May 15 to allow timely approval
• Form is prepared by Christy White & Associates using audited financial statements
• Filing is informational only (not a tax bill):
  • Reports revenue, expenses, and financial activity to federal and state authorities

Purpose and Components of Form 990

• Public disclosure document for tax-exempt organizations
• Includes:
  • Financial overview (revenue, expenses, operating results)
  • Year-over-year comparisons
  • Compensation disclosures (executives, board members)
  • Governance and compliance policies
• Required due to organization’s revenue size (full Form 990 vs simplified versions)

Financial Highlights (2024–2025)

• Total Revenue: ~$49.0M (down from $55.3M previous year)
• Net decrease: $6.3M
• Primary reasons for revenue decline:
  • Decrease in enrollment
  • Reduction in one-time funding sources
• Expenses:
  • Relatively stable (only ~0.3% change)
  • Increased spending due to raises and operational costs
• Net Assets:
  • Increased from ~$47M to $50.1M
  • Growth supported largely by investment gains

Revenue Breakdown

• Government Grants (LCFF & state funding):
  • Major revenue source
  • Declined by ~$5.7M (~11%)
• Program Service Revenue:
  • Increased due to international student tuition (~+$1.5M)
• Investment Income:
  • Includes dividends and interest
  • Critical in offsetting operational deficit

Operating Position

• Organization is operating at a deficit (~$1.7M) from core operations
• Investment income helps keep overall finances positive (“in the black”)
• Concern raised:
  • Investment income may not be reliable long-term
  • Future budgeting will use conservative estimates (4–5% returns)

Expense Breakdown

• Salaries and personnel costs: ~70% of total expenses
• Other expenses include:
  • Books and supplies (~6%)
  • Substitute teachers (~3%)
  • Charter authorizer fees
• Total expenses approximately $49.5M

Reserves and Financial Strategy

• Organization holds approximately $23M in reserves
• Monthly operating cost: ~$3M (≈7 months coverage)
• Leadership emphasized:
  • Reserves are a “rainy day fund”
  • Not intended for bonuses or discretionary spending
  • Importance of maintaining at least 6 months of reserves

Executive Compensation Disclosure

• Required public disclosure in Form 990:
  • Lists highest-paid employees and leadership
  • Includes salary, benefits, and pension contributions
• Noted:
  • 106 employees earning over $100,000
  • Board members receive no compensation

Independent Contractors

• Major vendors include:
  • Food services (e.g., Chartwells)
  • Substitute staffing providers
  • Security and other contracted services
• Contract costs are usage-based (hourly/services rendered)

Financial Position (Balance Sheet)

• Total Assets: ~$60.6M (increase of ~$6M)
• Total Liabilities: Increased by ~$3M
• Net Assets: ~$50.1M
• Includes $3.34M unrealized investment gains:
  • Not actual cash; reflects market value changes

Governance & Compliance

• Organization meets key IRS governance standards:
  • Independent board oversight
  • Conflict of interest policy
  • Whistleblower policy
  • Document retention policy
• Independent audits conducted regularly
• No unrelated business income reported (no Form 990-T required)

Key Takeaways

• Revenue declined significantly (~11.4%) due to enrollment and funding changes
• Financial position remains stable but requires monitoring
• Investment income is currently critical to maintaining positive net results
• Core operations alone are not fully self-sustaining at present

Discussion and Vote to Recommend to the Full Board for the Awarding of the 2026–27 E-Rate Network Project

E-Rate Program & Funding

• The project was bid through Infinity, the school’s E-Rate consultant
• Participation in the E-Rate program allows the school to:
  • Secure approximately a 60% discount on eligible services
• The current year marks:
  • The first year of a new five-year E-Rate cycle
• The school expects:
  • Approximately $600,000 in federal funding allocated for:
    • Internet services
    • Network infrastructure improvements

Project Scope & Purpose

• Focus on upgrading the network backbone infrastructure, specifically:
  • Replacement/upgrading of network switches
• Rationale for upgrade:
  • Existing switches are underpowered
  • Increased demand from:
    • Wireless access points
    • Security cameras
    • HVAC systems
  • New systems require greater power and capacity to function efficiently
• Goal:
  • Improve network performance, reliability, and scalability

Bidding Process

• The project was formally put out for bid
• Three vendors submitted proposals

Proposal Evaluation Findings

• One vendor (BDJ) submitted:
  • A vendor quote instead of a complete proposal
  • An incomplete RFP response, including:
    • Missing 21 required electronic items
• This proposal was deemed non-compliant/incomplete

Selected Vendor

• The contract is recommended to be awarded to:
  • Golden Star Technology (GST)
• Reasons for selection:
  • Submitted a complete and compliant proposal
  • Offered the most economical pricing among qualified bidders
  • Demonstrated familiarity with the existing system/environment, adding implementation efficiency

Conclusion

• After reviewing all submissions:
  • GST emerged as the most qualified and cost-effective vendor
• Recommendation:
  • Proceed with awarding the project to Golden Star Technology