Lynne reviewed the July financials. We are starting the year strong. From a cash perspective, we have sufficient funds, close to $1M which is about 90 days worth of cash. Just to be safe, we have requested an increase to the line of credit from PeoplesBank which would bring our line up from $300k to $500k. Lynne asked if there was any questions on the statement of net position. David Fuller asked about the relevance of the Friends of VPCS. Lynne explained that it was important to have it on the same statement so that trustees can see all transfers from Friends into the school as Friends of VPCS is the related 501c3 used for fundraising and the owner of the school facility. Denise asked about an accounts receivable for $125k on Friends statement. Lynne explained that $106k of this is the balance of the management fee from HPS and the remaining balance is from grants.

Next Lynne walked the committee through the statement of net position, explaining that this is like our income statement, she explained that the approved budget represents us assuming same tuition rate as FY20 and the projections column is more actual and how we expect where we will land at end of year. This is the column the management team uses to manage the budget and helps us to see how we are comparing to approved budget. The column labeled FY20 actuals is where we landed so this helps us to compare to last fiscal year. Lynne pointed out that federal grants are coming in higher than we projected because the formula for how the funds are allocated was revised and based on our student population means more funding for our school. We have the ability to move some of these funds into future fiscal year and we are hoping to be able to do that given the uncertainty around budget at this time.

On the expense side, Lynne explained the accruals on the personnel costs and that we are fully hired. Lynne pointed out that some spending happens early in the year. Denise asked about some of the instructional spending being over budget. Rachel explained how differently the team is spending money this year given the need to shore up the remote learning program and gave some examples of new technology and online vendors that the team has identified which will change how we spend money on the instructional program. Most of those decisions are made and costs accounted for in the budget projection though this is a different kind of year and we may add things in as we go. Lynne talked about staffing and the need for substitutes this year as an example of something that could change based on the trajectory of the virus. 

David asked if there are cost savings given we are opening remotely. Lynne explained there won't be huge differences because we are opening the building for staff to work because some need it and because we want to be ready to reopen. While there are some savings given the light usage, we will need to do heightened sanitization and other things that. 

 

Audit is almost done and went very well. We worked well with AAF again and wrapped up our field audit on Monday. All was done remotely and electronically. There are always recommendations that come out of the audit, ways we can improve. This year we do have one thing that is more serious that is currently under review. There were two employees who were enrolled days late into the MTRS system. This was our error and we will train a second person to make sure it doesn't happen again.

Teachers are back and in training now. Some staff are in the building some are remote, all are being trained in our remote learning plan. The planning process this summer was so successful and the team is doing an awesome job.