Lynne invited questions on the monthly financial statements. Denise commented that the school is very healthy and the monthly statements all look good. Lynne explained that the accruals for payroll are now included in the budget. David Fuller asked if our cash in the bank is completely insured. Lynne and Denise explained it is up to a certain amount, potentially $250k, but we aren't certain and Lynne has asked our representative at the bank. Tuition increased by 6% when we had assumed level funding which creates healthy funding for this fiscal year. Enrollment is strong, at 418 which is above what we had assumed. We've increased expenses based on need, technology being the biggest one.

Lynne walked through all the reports. explained that the Erate Grant provides support for technology infrastructure and hardware. This year we also got a COVID relief grant to support tech hardware expenses. All that said, we will have a larger surplus which is identified for cash reserve and technology investment later in the year.

Lynne moved on to talk about Friends of VPCS. We have a balance of SGP funds. This year, most expenses are coming form the Holyoke school's budget and so we do not need to rely on these SGP funds as much this year. Holyoke spending is also leveling out at this point in the year but with the possibility of bringing students back in person we do expect spending to ramp up in preparation. 

Lynne answered questions about the enrollment and how the state pays for tuition. She then explained the cash flow statement and assumptions within it. David asked if fundraising was included in the cash flow, Lynne explained grants are but not projections for potential board fundraising.

Tony did some research on the insurance of our bank funds and it is all insured or at least the majority of it. Whatever the FDIC does not insure the DIFF program does insure. 

Lynne walked the committee through the grants statement. David asked who on staff manages the grants and Lynne explained that it is her with support from Rachel, Amy and now Juliana. 

Major change from last month to this month are listed at the top of the second page. Rachel explained the biggest difference is the rent on Carando Drive increased based on the banks terms shifting and our lease starting later than the landlord expected which resulted in more carrying costs for him. We have made adjustments to budget assumptions in the first three years in order to balance the budget. If we exceed expectations/assumptions with fundraising and/or if tuition comes in higher than assumed we will be able to add back into expenses. We feel confident with our ability to manage this budget in the years ahead and the early years of the high school.

Denise pointed out that furniture and equipment are built into the budget expenses and not included in the facility lines. She then asked the committee if they had any questions. She asked Rachel to explain how the rent costs compare to the market and Rachel explained they are within market rangef in early years, on the high side and then very low in the later years 6-10.

She asked trustees if they were comfortable with the projections. All are comfortable with them.