Gregg Solkovits called a meeting of the Finance and Investment Committee Committee of El Camino Real Charter High School to order on Monday February 20, 2025.

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

Mr. Guinto confirmed that no public comments were received.

Mr. Gregory Wood, ECRCHS CBO, begins the report, mentioning the ASB organization and introduces Angelina and Tay Sankat as the new treasurers.

Angelina and Tay Sankat provide updates on community service, student achievement, athletics, and student activities.

Community Service Committee:

• Over the past five weeks, the committee dedicated their efforts to creating thank-you cards.
• These cards were specifically made to show appreciation for firefighters and other service personnel.
• The completed cards were sent out to various firefighter stations as a gesture of gratitude.

Student Achievement Committee:

• The committee implemented a Student Scholar Branch initiative, which recognized students who achieved a 4.0 weighted GPA or higher.
• Additionally, they are actively working on organizing an Academic Decathlon (Acadeca) path rally to celebrate and acknowledge the team’s efforts after their recent season completion.

Athletics:

• Two weeks ago, the athletic directors recognized and congratulated the winter sports teams by providing them with snacks and gifts to celebrate their efforts.
• They are also actively encouraging and motivating spring sports teams to start their season strong and stay committed.

Student Activities:

• The committee has been preparing for an upcoming Spirit Week designed to re-energize students and encourage school participation.
• Additionally, they are working on strategies to improve SBAC performance by introducing an incentive system.
  • Last year's juniors who performed well on state testing will be entered into a raffle.
  • Winners will have the opportunity to earn a reserved parking spot.
  • The goal is to continue this system to motivate this year’s juniors to excel in state testing as well.

Treasurers:

• The treasurers have been actively managing the budget for various committees by:
  • Tracking each committee's monthly expenses.
  • Monitoring how much money can be recovered to maintain financial stability.
• They have also allowed some flexibility in the budget, providing “shake room” for instances where committees may need to exceed their allocated funds.
• Additionally, they have developed plans to recover funds if any over-budget spending occurs.

Mr. Gregory Wood continues with CBO updates:

• He emphasize the importance of the second interim financial report due by March 15. The report includes year-to-date expenditures and a new budget forecast. He discusses the impact of negotiations and ADA adjustments on the report. The report will include actual compensations that was approved but will not include proposals or compensation changes due to the strike.

Mr. Wood, our Chief Business Officer, and Mike Breller from Beacon Pointe gave the update:

He introduces the investment agenda, starting with the January 2025 investment update. He provides a macroeconomic overview, discussing the Fed's rate hikes and the impact on the economy. The economy showed resilience with strong GDP numbers and low unemployment rates. He reviews market results, highlighting the performance of US equities, growth stocks, and value stocks.

Portfolio Performance and Asset Allocation:

He explains the portfolio's performance, noting a 25% return for US equities and a 5.5% return for international equities. The portfolio is more US-focused, with 39.1% in domestic equity and 17.7% in international equity. He discusses the importance of bonds as an anchor and the expected return of 4-5% over the next four to five years. The portfolio is designed to weather market volatility and potential economic downturns.

Investment Policy and Liquidity: 

He explains the importance of asset allocation and the potential for a more aggressive portfolio. The discussion includes the impact of federal funding uncertainty and the possibility of adjusting the investment policy. 

OPEB: 

As of the end of January, the OPEB account held a balance of $32.3 million, reflecting a 2% increase for the month and a 5.7% investment gain since the fiscal year began on July 1. The account started the fiscal year with $30.8 million and has experienced gains of $1.8 million alongside regular OPEB payments of approximately $53,000 per month for retiree benefits. Including these payments, the total account balance has grown by 4.7% seven months into the fiscal year. The OPEB retiree payments will remain consistent until October 1, aligning with the fiscal structure of CISC's medical plans, which run from October 1 through September 30.

General Account:

Investments managed by Beacon Pointe totaled approximately $7.1 million at the end of January, reflecting an increase of about $50,000 and a 1.5% gain. This account’s growth is roughly 4% year-to-date. Additionally, the Beacon Pointe accounts include an annuity and a two-bill investment, each valued around $400,000.

Mr. Gregory Wood provided an update: 

The finance office is currently in the process of compiling financial data, with a more comprehensive update expected next month. The office is actively working to fill two vacant financial positions — one role is anticipated to be filled by early March, while recruitment for the second, a lower-level position, is ongoing. Despite these staffing gaps, the team is effectively managing key responsibilities, including interim financial reports, year-end reporting to various agencies, and addressing a California Department of Education (CDE) audit of the cafeteria's food service program, which occurs every five years and is currently underway. Mr. Wood noted that financial operations remain stable and on track despite these ongoing demands.

Prior to the Vote to Recommend Approval to the Full Board, Mr. Wood, CBO, will review the January 2025, check registers from ECRA's City National Bank Accounts.

The committee reviewed the January 2025 check register, which detailed various transactions totaling $1.25 million. Notably, the general account transactions are conducted primarily through ACH payments rather than checks. Key expenses included a $355,000 ACH payment for the organization's health benefit plan, which is a recurring monthly expense. Additional payments from the general account included smaller insurance payments through Charter Safe, a payment to Texas Life, and a $447,000 payment to Pen Service. These transactions reflect the routine financial operations managed through the general account.

The committee also reviewed transactions from the fundraising account, which included two checks: one for parent tour catering and another for Teacher bagels. Following this, the committee examined the ASB account and corresponding trust balances. During the review, it was noted that a negative balance appeared due to the reclassification of funds. Specifically, Class of 2024 funds were inadvertently moved into the Class of 2025 account, resulting in a $657negative balance. This will be corrected by transferring the funds back to their appropriate account. The overall trust balance currently stands at $572,000, ensuring all funds are accounted for.

Mr. Wood, CBO, will review the January 2025, credit card charges.

The committee reviewed the credit card charges, noting the total amounts and purposes of the transactions. Specifically, Mr. Hussey's credit card charges amounted to $8,055.73, while Mr. Wood's total charges were $25,712.07. The combined total for all credit card charges was $33,767.80.

The committee discussed on the 2025-2026 budget planning process and calendar. Mr. Wood presented the proposed timeline, which largely mirrors the previous year's process. Key dates include:

• February 27: Presentation to the full board for approval.
• March 4: Budget packets released.
• March 5-21: Departments meet to assemble their budgets.
• March 21 (tentative): Instructional Leadership Team meeting to finalize details.
• May 22: Finance Committee review for the Instructional Materials and Supplies (IMA) budget to ensure key educational needs are approved before teachers leave for summer break.
• June 26: Full board approval of the finalized budget.

This timeline is designed to align with the Local Control and Accountability Plan (LCAP) process and ensure teachers are aware of approved resources before summer.

The committee discussed and voted to recommend Christy White Associates to perform the 2024-2025 school audit. This engagement is part of a three-year contract established in 2023, which included two optional extension years. Christy White Associates has successfully completed the 2022-2023 and 2023-2024 audits under this agreement. The recommendation is to proceed with the final optional year at the fixed price stated in the original contract. If approved by the full Board, the organization will sign the attached document confirming the engagement for the upcoming audit.

David Hussey, Executive Director, presented the fee for service request for a school police officer for the 2025-2026school year. The officer, provided through LAUSD School Police, works four 10-hour days per week to enhance campus safety. The estimated cost is $197,400, reflecting a 7% increase from the previous year, aligning with LAUSD employee salary adjustments. This cost includes not only the officer’s salary but also expenses for the police vehicle, training, and access to additional resources if needed. Mr. Hussey emphasized that while only one armed officer is present on campus, they maintain direct communication with other school police officers, LAPD, and the sheriff’s department to ensure rapid response during emergencies.