Boardmember Malconian led members and guests in the Pledge of Allegiance to the United States of America (USA). 

One member of the public, Mr. Daniel Osztreicher, made a public comment, summarized as follows:

* Mr. Osztreicher noted that he had had difficulty locating the Board Packet for the F& I Committee Meeting.

* Mr. Osztreicher inquired about the possibility of coding all expenses.

* Mr. Oszstreicher inquired about the purchase of Wayside publishing expense for a Spanish curriculum item that had also included an invoice for Canvas.  This was listed on p. 22 of 140 of the packet.

NOTE: Packets are posted on the website under "ECR Board" Tab, "Board Materials" tab for Regular and Special Board Meetings and under "Standing Committees" tab for Standing Committees such as today's Finance & Investment Committee Meeting.

NOTE: Packets are posted as soon as practicably possible after all appropriate attachments have been received by Dr. Lowry.

NOTE: Later in the meeting during the review of check registers, credit card statements, financial reports, there was discussion about the business office continuing to look for ways to organize and present information and reports on adjusted forms.  While no specifics were discussed, the committee, along with Mr. Wood, CBO, and Mrs. Ilyas, Director, Accounting and Finance, acknowledged the need to continue to look for ways to present financial information.

Mr. Wood, CBO, provided his CBO Update, with highlights summarized as follows:

1. Attendance and enrollment are down about 80 overall students to 3469 after our first month, from 3550 expected and budgeted coming into 2022-2023; attendance and enrollment are critical in terms of our overall funding; Freshmen and Seniors are holding steady as compared with last year, while 10th and 11th grades are below expectations (approximately 40 in each of those grades). 

2. We "lock in" attendance after the 8th month of school.

3. Three sub-categories of students and their respective enrollment include: 

                    * Students with Disabilities (SWDs) = 393 enrolled, which is a large population.

                    * Alternative Education = 79 enrolled (11th/12th)

                    * Independent Study Program = 135 enrolled (room for growth there)

4. Cafeteria is a source of pride; August 2022 average participation  is 1874 meals, as compared with a participation rate of 913 meals from August 2021; overall revenues from the past 2021-2022 academic year were approximately $140,000; this August, alone, we've received $48K in revenue, which foretells possible great revenues anticipated; any revenues need to be reinvested in the cafeteria (decor, materials, equipment, staff, etc.); two staff members may be hired and a change in cafeteria management has already occurred; Ms. Malconian asked Mr. Wood if the breakfast or lunch carts are in use, to which Mr. Wood replied in the affirmative, that 1-2 a la carte items are provided on carts, once during the morning with possible expansion to two carts in the morning, and one cart during lunch selling primarily pizzas and other a la carte items; very excited about the bottom line and getting the kids excited about the menu, etc. 

5.  Mr. Wood noted that ECRCHS is looking into a new payment system for paying Athletics-related expenses; (games, referees, etc.) Arbiter System; concern is about extra work or the business office due to the automated system; the emphasis is on accountability and accuracy; 

Mr. Wood, CBO, provided the August, 2022, Investment Update, with highlights as follows:

OPEB Trust:

1.  Starting point end of June $20,459,440; end of July 22, $21,711,610; end of Aug $21,145,076;

2. 2 months of contributions = $440K

3. Gains $245,636 (1.2% Investment Change)

4. Current ending balance of $21,145,076 = 3.4% Total Change

General Account - U.S. Bank Holdings:

1. US bank holds three different advisors = $6,006,105 overall balance (Polen Capital, Fiduciary Management, Beacon Pointe)

Annuities:

1. Midland - $393,644

2. Athene - $389, 644

Total Combined General Account Balance End of August: $6,789,016

Month-End COMBINED (OPEB + GENERAL) = $27,934,092

Mr. Wood, CBO, and Ms. Ilyas, Director, Acct. & Fin., provided the August 2022 Financial Update with highlights as follows:

* First column (EA) includes estimated actuals

* Second column includes unaudited actuals

* Third column is what board adopted for 22-23

* Fourth column is the 22-23 budget with updates due to new funding and salary increase

 Regarding Revenues:

1. LCFF - Total Revenue in adopted 22-23 budget was $38,575,151, but adjusted numbers reflecting lower ADA and salary increases, the updated budget reveals revenues of $37,883,858.43.

2. Federal Revenue - Adopted Budget $3,609,260.13; with adjusted federal revenue at 

$3,408,946.01; updates to Title 1, 2, IV, and Spec. Ed. revenue (IDEAIA/Interagency Contracts).

3. Other State Revenues - Reflect an increase in State Lottery Revenue - from $744,991.00 adopted to $822,153.00; Total Other State Revenues 22-23 Adopted Budget $1,439,530.37 and 22-23 adjusted Budget update with new funding/salary increase = $1,516,692.37.

4. Other Local Revenues - Interagency Services Between LEAs show an increase from 22-23 adopted budget of $4,697,685.45 to 22-23 Budget Updates with New Funding/Salary Increase projected amount of $6,224,466.05.

TOTAL REVENUES adopted 22-23 budget = 48,321,626.95 while adjusted budget projects a revenue increase to $49,033,962.86.

EXPENDITURES:

Mrs. Ilyas noted that there were not any changes other than the approved 3% on schedule salary increase for employees adopted on 8/25/22.

As the year continues, she noted, Mr. Wood and she will provide udpates on the adopted budget to actuals, while also looking into possible changes in format for presenting the information to the board/committee. 

Mr. Wood noted that the 22-23 adopted budget included a projected surplus of over $451K in the reserve, and even after the adjustments and salary increase adopted, the 22-23 adjusted budget still reflects a projected surplus of approximately $277K in reserves.

We will use enrollment and ADA to note changes in projected ADA and revenue. 

3% salary increases were provided for August on 31August.  Retroactive checks were provided for July and any other hours owed for employees.

Mr. Wood, CBO, Ms. Ilyas, and Ms. Malconian, led a discussion on ECRCHS Current Fiscal Policies and Procedures, with highlights as follows:

Need new language in some areas of the FPPs:

* Equity and Clarity needed; reimbursement processes 

* Relationship with back office has changed as we have started to re-acquire some functions;

* Give stakeholders opportunity to weigh in and provide input ahead of a more detailed next meeting

* Preliminary Areas of need for adjustments include:

* p. 11 - Purchasing Flow Chart - recommended edit to state that anything $50K that has not already been approved and budgeted already is subject to committee/board approval;

* p. 12 - Reimbursements and Expense Requests - recommended lowered amount limited to $5K to ensure consistency with other referenced FPPs language; Anything over $10K would recommend special consideration by Executive Director and CBO.

* p. 17 - Need a formal and clear policy on Field Trips; Travel section; for example: charter buses language needs clarification to determine need based on mileage, numbers of students, etc.  Teams and/or others can fund raise and/or use their trust funds.  Getting language in the FPPs will make processes easier and accessible. 

* P. 22 - Student Awards - Cash or cash equivalent discussion presents an area of concern; need clarity; use of public funds; we need to review and address this language; 

Mr. Wood would like for the F&I committee and administration to review the FPPs and specifically, the language in this document. 

Ms. Malconian requested examples of when students may have been given cash or cash equivalent awards pursuant to the current FPPs.

Ms. Malconian asked about the Supplies budget to which Mr. Wood and Ms. Ilyas replied that departments have budgets for Instructional Materials.  Ms. Malconian asked how much teachers are spending for which they are not being reimbursed, to which Mr. Wood and Ms. Ilyas replied that they are to go through the department chair and the business office.  The Business office supports out of pocket expenses for reimbursement as long as purchases are within the respective department budgets and are aligned with allowable purchases from respective supplies and/or IMA budgets. 

The Board discussed meals allowances and the need to use funds for meals that are associated with the provision of a purpose such as during Professional Development. 

Mrs. Ramirez noted that reimbursements/checks need to be signed off of and approved at the executive level by Mr. Hussey and/or Mr. Wood, with a designated administrator only in the absence of Mr. Hussey and/or Mr. Wood.   She noted that administrative directors should not be signing off on these reimbursements. 

 Mr. Wood again invited stakeholder comments prior to a return to next month's Finance and Investment Committee Meeting. 

Mr. Wood noted that this item will be discussed briefly during the Regular Board Meeting and again during the next F&I Committee Meeting.