There were no public comments.

John Arndt from ICON presented the May 2021 financial report.  He reviewed the balance sheet,  which shows a significant increase in cash as compared to last year, primarily due to investments and the state aid deferrals.  The balance sheet also includes the 3% economic uncertainty as a net asset; Mr. Archibald stated that he believed the Committee had discussed removing this.  Mr. Arndt replied that the economic uncertainty amount had previously been listed under cash, but it should have been listed as a net asset.  The cash flow was reviewed.  Cash analysis was reviewed, with 151 days of cash on hand. Total cash is expected to be a little over $15 million on June 30th.  The new account that was approved for automatic transfer of funding is in place and funds will be electronically transferred from LA County, which will improve cash flow.  Investment Analysis as of May 31st was reviewed.  The Profit and Loss Summary was reviewed.  Operational expenses are down due to COVID-19 and there is additional funding this year from the CARES Act and other sources due to COVID-19.  The year-to-date expenses were reviewed, which is currently at 78%.

Mr. Hussey reviewed the investment portfolio's progress.  Cetera is asking that the trust be amended to reflect the new trustees; ECR will have to get outside counsel to assist with that.  Mr. Wood is working with Beacon Pointe to transfer everything over to them.  The annuities will be moved, but not liquidated at this time due to penalties.

The May check registers were discussed.  Ms. Chen asked a few questions, including about the Shoup sidewalk repair, temperature measurement system costs, and network engineering costs.  Mr. Silverstein asked about what requirements must be met for expenditures to appropriately fall under the ASB account.  The are multiple sports and clubs whose funds fall within the broader ASB account.

The credit card bills were reviewed.

This item was moved up to follow Item III.A.
The 2020-2021 estimated actuals were reviewed.  The impact of the actuarial study, including a $3 million dollar adjustment that was not expected, were discussed.  Mr. Arndt and Mr. Wood reviewed the 2021-2022 budget assumptions and projections.  Under revenues, LCFF Sources were discussed and this revenue is expected to be up by approximately 8%.  Federal and state revenue are expected to be down due the significant additional CARES funding resulting from the pandemic that were one-time funds.  There are various sources and timelines for use of the CARES funds.  Certificated salaries going up due to CARES funding and Extended Learning Opportunities (ELO) funding.  Mr. Archibald asked about the assumptions underlying the increase. This line includes new hiring to lower class sizes and filling open positions that already exist.  For any open positions covered by a substitute, the costs are changing location in the budget but are not actually a new cost.  Ms. Chen asked about the administrator position left unfilled this year following Ms. Ring's retirement and Mr. Hussey confirmed it will be filled for the coming school year.  Consulting costs include adding 10% more paraprofessionals as required to receive the CARES funding and adding a second PSW.  Costs for substitutes and field trips are expected to resume at a more typical level.  For the longer term projections, the new investment company is more conservative and smaller balance swings are expected with the investments.  Mr. Archibald noted that he sees an organization's budget as reflecting their future vision and asked how the vision for 2 or 3 years out is reflected in this budget.  Mr. Hussey noted the increase in certificated expenses that are resulting from the efforts to decrease class size and ways the planned budget supports academic achievement and college and career readiness.  Mr. Silverstein noted the need for more classrooms for teachers and long-term planning and budget impact resulting from the need for capital improvements, as well as the extended process of working with LAUSD and meeting their requirements for changes to the facility.  The committee discussed the creation of a deferred maintenance fund with reserves to support long-term needs.  A separate account has not been set up for this yet.  Mr. Wood discussed that it would be based on needs identified in the plan for capital projects that is currently being developed.  Mr. Hussey noted that RFPs/RFQs will need to be sent out to get a more realistic idea of the actual costs of some of the larger projects.  Mr. Archibald asked for a timeline of when the proposed accounts and costs will be presented to the committee and/or the Board.  Mr. Hussey said that he will present information at the August meeting.  Departmental budgets for instructional materials and textbooks were set based on specific departmental needs and the number of FTEs teaching in the department.         

Though contracts are commonly 5 years, the CDE is requiring a contract this year with specific provisions.   Mr. Wood noted that he had some information regarding the staffing level / schedule included in the contract.  Any other provisions would need to be done as a side agreement with the vendor.