Quorum established.

Mr. Hussey led Board members and guests in the Pledge of Allegiance to the United States of America (USA). 

No requests for public comments were received.

Mr. Wood, CBO, provided the CBO Report, with highlights as follow:

Cafeteria up 50%

$180K - Lunch

$140K - Breakfast - new items have driven the increase; cinnamon rolls, etc.; monitors to show weekly lunch and breakfast menu specials; 

In the black by 64K for the month, an all-time high; fully expect April and May to be as strong; even though the school is projecting a surplus of $307K, Mr. Wood is confident that even that amount will be easily surpassed; 

Chartwells; very pleased; asked regional manager to comment in response to calorie concerns expressed during the last meeting; Chartwells received the feedback and discussed and consulted with dieticians and others, then issued a statement to ensure us that they follow all nutritional guidelines with regard to caloric intake and nutritional standards for recipes, etc., to put it on the record that he believes Chartwells is in full compliance with USDA nutrition guidelines for the school breakfast and lunch program.

ADA and Counts - March is an important month for the school; enrollment for 2022 3496; down 96 from last year; see the by grade level enrollment; we are losing 895 12th graders this year; enrollment projection down and we're redoubling efforts for enrollment;  possible decrease of another 65 students based projections.

ADA - last year 3244 ADA for March of 22; 3097 ADA for March of 23; last year 93% ADA and only at 91% this year; 

Per Mr. Wood, the 91% for the month is the lowest we've had and unfortunately the number that is the lowest is factored in so we'll probably we funded at somewhere around 3218 students. 

Mr. Hussey noted that spring break and a change of seasons account for lower attendance, the final months of the school year are historically generally lowest.

Substitute Cost Comparison Research - Dr. Lowry provided an overview on his research into Sub. companies rates, providing context and will forward this information to all F&I members, Mr. Hussey, and the Business Office. Companies included: Scoot, Kelly, The Education Team, Teachers on Reserve, Sub. Teacher Source, and LAUSD; rates to include short and long-term.   

AB 602 Revenue Update on monies we received from July through February; LAUSD retroactively adjusted all special education revenues; $150 "per" reduction, resulting in a $300K hit; after following up, we expect a retroactive favorable adjustment to occur.

Fulgent - just spoke with legal counsel today; atty is still putting together our case; GHCHS is further along; Birmingham CHS, ourselves, Fenton, others; still pending; CharterSAFE has offered to represent some schools through their Nationwide insurance company.

$1.6M in charges, but some liability.  Mr. Wood noted that the issues are so wide and varied; Noted that it could be a question of whether or not a school might be willing to settle for $.25 on the dollar.  Ms. Malconian asked whether or not we will owe something, to which Mr. Wood replied in the affirmative.

Mr. Wood provided the March 2023 Investment Update, with highlights as follows:

End of Quarter at hand; Mr. Breller will be here next month to review the quarterly investment report; 

End of Quarter $23.8M in OPEB

$6.9M in Gen. account

Combined $30.7M total

There were some Intra-management transfers between some accounts; for example, they moved .5M from Fiduciary Management and into Beacon Pointe in an effort to better align with our investment policy; moved funds out of Polen and Fidcuciary and into Beacon point

YTD Basis:

$20.5M

$1.98M contributions

$1.3M gain excluding contributions; 

Change up 6.5%

Including our contributions, we're up 16.2%

Balance of $23.7 is now $24.1M, which includes our contribution of $220K

Mrs. Ilyas provided the March 2023 Financial Update, with highlights as follow:

Comparing out budget to our actuals; $44.39M in revenue

we received our hold harmless adjustment at $1.4M. 

On the Expense side; everything is going according to the budget; at $37.2M; 

we've seen increases on sub. costs and field trip expenses; we've had a decrease in our supplies line as some textbook expenses are deferred to next year.

Ending balance projected $7.1M; Mr. Wood noted that we should hit the $4.2M projected balance at a minimum.

Mrs. Ilyas previewed the line item Financials document which shows the detailed revenue and expenses lines.  

ICON:presentation slides overview

Presentation view of our financials
 

Balance Sheet - assets and liabilities and comparisons with last year's numbers; mainly in our OPEB liability;

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

• Decrease in Long-Term Debt – OPEB Liability 

• Accrued Liabilities increases due to increased LAUSD & Benefit liabilities 

• Deferred Revenue decrease due to LCFF & Prepayments earned 

• 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 - Revenue in our cash account; accounts receivable. 

OPEB is our main liability on our Balance 

Ms. Malconian noted that we are ahead with Cash on Hand to which Mr. Wood and Mrs. Ilyas affirmed; 

Cash Analysis Slide:

Days of Cash on Hand: 264 (Recommended: 90)

Profit and Loss Summary slide highlights:

NET INCOME (LOSS) YTD = $7,106,188  

NET INCOME BEFORE FMV ADJ. YTD = $5,229,582 

Profit and Loss YTD Slide highlights:

Revenues: 

• Received $1.4M in hold harmless revenue, in the form of EPA revenue 

• Decrease in SPED rate, from LAUSD SELPA Expenditures: 

• Increase in sub costs 

• Increase in field trip expenses 

• Textbook costs deferred to next school year for certain depts.

Budget Comparison YTD:

Reflecting a normal revenue/expenditure receipt and spending rate for being 9 months through the fiscal year.  We are where we should be. 

• Only exception is in State Revenue with the receipt of 2 new block grants and State Nutrition funds increasing 

• Capital Outlay is an exceptional expense; characterized by major improvements to the campus.

Department Textbooks Budget Slide highlights:

• Textbooks and Instructional Materials in certain departments will continue to be monitored due to the need to purchase more materials in order to continue higher educational standards. • Board approved 22-23 Budget allocations for Textbooks and IMA in May 2022.

In response to Ms. Malconian's question regarding Capital Outlay, Mr. Wood noted that the depreciation line may actually increase fractionally and carry to next year, due to capital outlays; noted that depreciation will be accounted for via report and reported accordingly.

Other Matters Slide highlights: 

• Textbook proposal for 23/24 is being recommended by the finance committee this meeting 

• P-2 ADA Impact on LCFF revenue 

• IMA will be brought to the committee for approval next month.

Lopez-Vargas questioned whether or not the Arts and Music block grant will be pushed into next year, to which Mr. Wood replied in the affirmative;