Mr. Hussey, Executive Director, led Committee Members and guests in the Pledge of Allegiance to the United States of America (USA).

No public comments were received.

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

* Regarding Fulgent, we still have the outstanding billing of $1.6M; we've engaged YM&C legal counsel who will representing ECRA/ECRCHS, Birmingham CHS, Granada Hills CHS, and Partnership for Uplifting Communities (PUC); we're putting together our materials through legal counsel who has sent a letter to Fulgent to send any correspondences to YM&C legal counsel/representative;  Mr. Wood noted that our JPA, CharterSAFE, may possibly file a claim on our school's behalf in coordinated collaboration with YM&C;

* ADA report for month 6 is being updated tomorrow; will provide updates at the regular board meeting;

* CDE funding apportionment updates for rest of 2022-2023 school year, including any "hold harmless" amount; will have the ADA update report as well as any information regarding any apportionment funding updates from the CDE;

* Cafeteria keeps performing; Cinnamon Rolls selling like "hotcakes;" demand has been strong; 

Committee Members made a no-vote suggestion for food samples for the next Reg. Board Meeting;

* We're up 61% meals services; YTD revenues up $267K; projecting to end year at over $400K in revenues/increase; We're looking at upgrades within campus/cafeteria outside; in the cafeteria area; outdoor seating area; 

Ms. Malconian noted that this is in large part due to all kids eating for free, to which Mr. Wood noted that the Federal and State have provided a lot of funding; he noted the program might last another year;  Ms. Ilyas noted that there is actually not definite ending of the program, so any change to the universal meals served would likely need to be voted on by the board.

Mr. Breller, Beacon Pointe Investment Advisor, was not present, so Mr. Wood, CBO, presented the Investment Update, with highlights as follow:

Mr. Wood noted that in the materials is the 4th Quarter Report ending December 31sth, 2022, with highlights as follow:

OPEB Account:

Overall Balance: $21.8M 

Key indicator is lower half of page 2, noting an Executive Summary breakdown of US Equity, Intl. Equity, and Fixed Income, Alternatives, and Cash positions, and whether or not we're in compliance with our IPS Range and Policy positions.

Mr. Wood noted that we are within our policy ranges.

Ms. Malconian noted the cash position is low at .3%% and noted that our policy range is 0%-10%.

Ms. Ramirez asked who and/or how is the policy range determined, to which Mr. Wood replied that the F&I Committee and Board set and approved the policy range and worked with Beacon Pointe in the process; Beacon Pointe, he added, abides by what we recommend.

Ms. Ramirez asked how often do we look that the policy range, to which Mr. Wood noted that it's been approximately two years now;  

Mr. Hussey added that we can look at it every year, or every 6 months, and noted that we look at it generally every quarter with Mr. Breller presents; Mr. Wood broached the subject of the Polen Capital example wherein Beacon Pointe reallocated funds away from Polen due to performance concerns and into a more diversified index fund; Mr. Wood noted that the Board can go back to Beacon Pointe to effect change in the Policy Range and Beacon Pointe will abide by whatever range the Board is comfortable with; he noted that it is totally up to us to make the change;

Gen. Account balance is $5.9M

A little more security; OPEB is more long-term with more growth/risk-based securities;

Balance positions reviewed with noted investment in Fixed Income securities; in all cases, we're within the policy ranges.

I invited our corporate trustee, US Bank, to attend our meeting next Month; for a once/year check-in; our representative will be present (virtually) at next F & I committee meeting and the following Regular Board meeting; Will benefit OPEB trustees.

OPEB and Gen. Acct. Chart Review:

$21.8M in December; increase $1.6M in January alone; whole fund up 14.4% as of end of January;  $1.54M in contributions; 

Gen. Acct. overview of funds/managers; almost $7M in the Gen. Acct.

Combined $30.4M; a very healthy place to be; Mr. Breller will be here to attend the Regular Board Meeting to fill in the details as needed.

Mrs. Ilyas, provided an the Jan. 2023 Financial Update provided by ICON, with highlights as follows:

Balance Sheet Slide:

Cash increase due to Net Income generated to date and advance ESSER Payments

Decrease in long-term OPEB liability due to how well it's doing;

Increase in our LAUSD and Benefit liability; restricted net position presented;

Cash Analysis Slide:

235 days of cash on hand; we have enough funds to cover the academic year if something catastrophic happens; Mr. Wood added that the line to the right shows a very healthy, stable position for our cash;

Profit Loss Summary Slide:

All our revenues and expenses

Also working on our 2nd Interim report so by the next meeting, we'll have those numbers and newer projections; 

Ms. Lopez-Vargas - Is the adopted budget column correct?  I don't remember us approving a negative operating income, to which Mr. Wood noted that they (Business Office) will review and adjust that column; he noted that the Board had adopted a flat budget and that he/they will adjust that column; 

Profit Loss Slide: 

Revenues: 

Increase in fed. revenue through increase participation in the cafeteria, and CARES act funds; 

Increase in State Revenue due to ECRA's receipt of two (2) new block grants, the State's backfilling funds for universal meals, and we've seen a decrease in our fair market value adjustment; 

Expenses:

Capital Improvement Projects throughout the school; PERS and STRS rate has also increased; 

Next slide Compares Budget to Actuals: 

We are reflecting a normal/expenditure receipt and spend rate for being 7 mon. through the school year.

The only exception is in our State revenue and our capital outlay; this is where we're seeing those outliers.

Mr. Wood noted that we expect to see 7/12 of expenditures used at this time of year; Capital outlay is higher due to purchases' 

Department Budgets (4000s) Slide: 

What the Board approved for Textbooks and Instructional Materials and what the projections were based on 1st Interim and where they are YTD; Mr. Wood noted that these budget totals reflect roughly 21% of funds being spent at this time; he cited various departments, including Science and Math budgets alone comprise over $400K; we will look at details; 

Mrs. Malconian asked about Health and Life Skills; Budgeted amount vs. large amount spent; 

Other Matters:

IN the midst of 2nd interim preparation; clean up and review for that quarterly report;

We're also in the midst of launching of the budget process for next year which we will talk more about in item 5.

CARES ACT SUMMARY:

Reviewed how much we're allocated what we've spent and the deadline by which the money must be spent.

Ms. Malconian asked if there is a plan to spend what is left in ESSER II, to which Mr. Wood and Ms. Ilyas replied in the affirmative. 

Ms. Malconian asked what we pay to the LAUSD for the property, to which Mr. Wood noted that it's 1% oversight fee, or 1% of our LCFF revenue or slightly over $300K; the code is "Other OUTGO," an accounting code; Ms. Ilyas noted that the amount is "taken off the top;" it won't be on any check register, per Mr. Wood; 

Mr. Wood, CBO, led a discussion on the 2022-2023 RFP for Audit Services, with highlights as follow:

* Contract expired so we're requesting an RFP for one year with up to two additional option years;

* Subject to the Full Board's approval 

* Evaluation Rubric areas previewed;

Ms. Lopez-Vargas pointed out an incorrect year 2018-2019 on the item.

Discussion ensued about the need to make this item a voting item at today's F&I Committee meeting:

Ms. Malconian made a motion to change this item to a voting item from only a Discussion item; Ms. Ramirez seconded the motion; After a roll call vote, the motion carried 3 ayes to 0 nays;

Upon making this item a voting item, Ms. Lopez-Vargas moved to vote to recommend to the full board the approval of the 2022-2023 RFP for Audit Services; Ms. Malconian seconded the motion;  After a roll call vote, the motion carried 3 ayes to 0 nays;