Reviewed the AY/FY27 Annual BudgetDiscussion:

• Year to year basis expecting about 1.4M increase in revenue due to the WAM/WADA being higher, which increases Prop C revenue by $86K
• Target: 371 enrollment with 4% attrition and 87% attendance (ended the year at 89.2%).  Attendance could increase to 88% or 89% based on this year’s performance, which would add funds. (Charter goal target is 90% for next year)
• Expenses up by 975K
• Personnel cost up correlated to enrollment growth, some of which could be offset by CSP grant funds.
• Non-staff costs 655K most of which is placeholders to correspond to the CSP revenue.
• Transportation is challenging:  Increases in homeless or SPED students could increase costs.
• Debt service of $244K is positive as paid $565K rent this year, so we are renovating a new facility for less than we were paying in rent.

Will have a surplus at EOY

Reviewed CSP grant allocations for FY/AY27

Need to build and maintain a quarterly spend down plan in July.

ED will present a contingency plan expected funding doesn't come through.

TLS has applied for a grant to address three areas of need;

• high dosage tutoring for Grade 1 and students who re 3+ years behind in higher grades.
• leadership development for two staff members
• partial offset of the cost of adoption the new ELA curriculum Redthread.

Discussed the need to find grant monies to help offset the expense of additional staffing in the area of operations.

Discussed the desirability of pursuing the Emerson grant for early literacy through The Opportunity Trust, pendning the funding source coming through.

Discussed need to prepare the PBC (Prepared by Client) list documentation (location, who owns what) in advance of September, when the audit is conducted.

Discussed the need for consolidating tracking for donations, fund-raising, petty cash, into one documents for the auditors to view.

Reviewed the KPIs for May:

• 59 days of cash on hand
• 2% gross margin (below the 5% threshold)
• 14% fund balance

Summary

• 54k Decrease in Net Income:
  • April close: 190k to May close: 134k
• Revenue: Net increase of 439k
  • 96k increase in State revenue: 97k transfer from DESE for Black Men Read; will not be paid or returned by 6/30/2026
  • 134k decrease in Federal revenue: 129k decrease in CSP
  • 468k increase in Local:
    • Loan proceeds appears as an increase in revenue, but the matching increase in expenses is net neutral
• Operating Expenses: Net increase of 24k
  • 27k decrease in Benefits and Taxes represents a shift from cash flow adjustment to credit to Operating Expense. No other change to Wages and Benefits and Taxes.
  • Pending invoices to be paid by 6/30/2026 inform the following changes:
    • 13k increase in PD based on pending invoices
    • 10k increase in Occupancy Service
    • 8k increase in Student Expense, Direct
    • 10k increase in Office & Business Expense
    • 10k increase in Transportation
• Operating Expenses: Increase of 468k
  • Reflects matching increase in Loan Proceeds revenue

Shall we add the following to the F and F Committee Charter;

Monitor efficient operations:

• Internal systems position TLS to follow a consistent cadence of grant-related expense reimbursements - Expense reimbursements are applied for quarterly.
• Internal systems allow financial partners to complete monthly tracking efficiently. - EdOps reports no delays
• Internal systems allow auditors to conduct annual financial review effectively. - Auditors report no delays

Bring up for discussion at 6.30.26 Board meeting