Mr. Wood, CBO, led members and guests in the Pledge of Allegiance to the United States of America (USA). 

There were no requests received for public comment(s).

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

* Cafeteria continues to exceed budgetary and participation expectations.  We continue to record record revenues on a monthly basis.  In October, we netted $62,500 with participation up 58% when compared with the same time last year.  Looking forward to additional equipment funding ($100K) and then based on prior year ADA free and reduced is another $90K for equipment and training; designer architect is doing a reconfiguration proposal (inside and student bench areas); offering new menu items, great communication lines; Dec/Jan thinking of inviting Chartwells and/or architect out for a presentation of modernization conceptual design, etc.

* ADA attendance and enrollment by grade level and categorical student groups; Mr. Wood noted that ADA is how we are funded; possible presentation 

* Continuing work on auditor report with outside auditors; due to State by December 15th; LAUSD CSD had wanted information by November 15th; they will review and forward to LACOE who will then forward to the State.

* Notes Ms. Ilyas and he have attended webinars relative to various items, CARES, etc.  Just attended webinar regarding learning recovery grants and arts music grant.

Mr. Wood, CBO, and Mr. Breller, Beacon Pointe Investment Advisor, presented the Investment Update, with highlights as follows:

OPEB:

Mr. wood noted that the October OPEB balance increased from $19,713M to $20,842M based on investment gains plus a double contribution in October; As of 11/7/22, the OPEB balance is $20,684M.

Gen. Acct.:

US Bank Holdings balance $5.79M. 

End of month through Oct Investments down 2.4% up overall up 1.9% due to contributions.

Portfolio transfers due to performance:

* $725K from Polen into Beacon Pointe Account (OPEB)

* $125K from Polen into Beacon Pointe (Gen. Acct.)

Mr. Breller presented an overview of Q3 performance slides, with highlights as follows:

* p.1  of slide presentation for Q3; S&P down 5%, stocks and bonds losses; termed it the worst 60/40 portfolio he's seen; pandemic, fiscal stimulus; inflation, monetary policy rate hikes came together for a "perfect storm" that adversely impacted both stocks and bonds; this is really the worst we should see short-term.

* p. 2 - we were in a period of financial repression but repression policies are on pause in order to fight inflation with higher interest rates; fiscal policy is therefore in reverse, economy is slowing, with the chance of recession increasing; risk assets will remain challenged accordingly; while inflation is uncomfortably high, inflation expectations are well-anchored; therefore, the Fed. will continue to tighten financial conditions until inflation is subdued; higher interest rates and economic slowdown continue to support a rotation out of U.S. large Cap Growth stocks and into U.S. Large Cap value.  Fed. policy has produced attractive Core Bonds yields.  Alternative investments can help reduce volatility, diversity portfolios, and add "uncorrelated" returns.

* p. 3 - reviewed the portolio OPEB

Market value, percentage of porfolio, and then returns for a period; 1 year mark with Beacon Pointe; policy index reflects 60/40 stocks and bonds, respectively.  Gray bars represent equities asset classes, growth, value, etc.  Domestic and intl. are subsets.; it's our fiduciary responsibility to ensure that we invest within the policy statement/ranges based on the risk profile of portfolio expectations. 

OPEB 5.5% decline 

Additional comments:

* made some shifts to reduce risk while increasing returns; 

* Alternative investments provided less correlated performance and reflect slightly lower decreased returns when compared to overall portfolio; reduced volatility.

*Polen noted that consumer staples were too expenses; not terminating the manager, but trimmed to put into our passive equity strategy (core equity passive strategy - S&P 500).

Good News:

* October brought another 3-5% increase; Polen significant increase in one day;

Gen. Acct:

* p. 7 - 4-5% income payments starts to pay off some of the losses; all investments are within policy ranges, etc. 

Mr. Wood, CBO, presented the Financial Update, with highlights as follows:

Balance Sheet Slide:

• LT-Debt decreased due to FMV adjustment to OPEB Accounts 

• Restricted Net Position: 

• Cafeteria - $217,171 

• Ed. Effectiveness - $140,938 

• Kitchen Infrastructure - $25,000 

• A-G Success Grant - $258,788 

• A-G Learning Loss - $97,019

Cash Analysis Slide:

• Days of Cash on Hand: 210 (Recommended: 90)

* Cash categories and comparisons 

* We can pay our bills for 210 days...in case of emergency/loss.

Profit and Loss (Summary) Slide:

* This slide presents a summary/view of our profits and losses

Profit and Loss (YTD) Slide:

* Per student funding has increased from last year, with large COLA% increase 

• 2% (June 2022) + 3% (Aug 2022) built into salary schedule 

• COVID relief funds revenue and expenses reflected in actuals 

• FMV adjustment reflects market volatility

Budget Comparison (YTD) Slide:

• Lottery Amounts went from $150 – Unrestricted / $49 – Restricted to $163 – Unrestricted / $65 – Restricted (more revenue) 

• SPED Rates are projected to increase from the $689 – State/ $267 – Federal (more revenue) 

• Expecting an audit adjustment to revenue due to the state’s hold harmless provision

Department Budgets (4000s) Slide:

* Mr. Wood noted that he'd like to see a higher percentage spent on textbooks at this time of year.

* Textbooks and Instructional Materials in certain departments will continue to be monitored due to the need of purchasing more materials in order to continue higher educational standards. 

• Board has approved 22-23 Budget allocations for Textbooks and IMA in May 2022

Other Matters:

• Preparing for 1st interim projection updates