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Courtney spoke about enrollment for both 25 - 26 as well as 26 - 27.

For 25 - 26 we are over 700 scholars (budgeted enrollment) but our goal is to get to 720 so as we lose scholar throughout the year (such as due to moves), we are continuing to enroll.  There are approximately six scholars who are in the process of enrolling at this time.

For 26 - 27 we are also actively recruiting (although 25 - 26 remains the priority).  Courtney discussed a November 12 community leader breakfast.  Jarrod asked Courtney to add this to the agenda so Board members may consider attending; also it would be valuable to get Board members' input on how to increase interest/attendance at the event (thus far only four indivdiuals have registered).

Kate VanBramer from MMB addressed the Board regarding the school's independent audit.  The audits were all "clean" meaning there were no findings.

The MMB is awaiting final accounting updates (right now they are in draft form) so MMB is holding on finalizing the audit at this time.

For the Balance Sheet overall there was a decrease in assets of year over year.  Reflection of ERC money, receivables coming in, etc.  Nothing is alarming there and a healthy cash and investment position.  $284,000 year over year.

Accounts receivable down $215,000.  Due to ESSER money - partially receivable.  About $300K related to ESSER specfiically received post 06.30.2024.

There was a decrease in liabilities of about 274K year over year. The bonds payable current adn long term down by 185K.  This was the principal due offset by the bond issuance cost which continues to ammortize.

Accounts payable is down year over. year from a timing perspective.  Deferred revenue depends on when Summer Boost was received (June 2025 for summer 2025 program) which was deferred at the end of the Fiscal Year.

Looking at Statement of Activities.  Decrease in operating revenue of 120K year over year.  A few fluctuations such as per pupil funding (up 207K) due to a rate increase.  Federal awards there is a big decrease (COVID monies) of 982K.  Federal awards decreased almost due exclusively to ESSER.  

ERC - Employee Retention Credit - net of 404 which includes the interest income received plus ERC monies.  This was offset by the required 15% fees to amend the tax returns and complete the calculations.

Expenses down 121K year over year.  Overall percentage in terms of what's being allocated to education services, Bronx Support Corp, as well as management - all consistent year over year (81% year over year).  Very in line with where the industry is.

Statement of functional expense. 3% increase.  Offset by other expenses (decrease in supplies.  Decrease in textbooks, uniforms, etc.  Decrease in field trips and other activiites).  Overall very consistent from 24 to 25.

Statement of cash flow.  Repayment of the bond principal.  Overall increase in cash and cash equivalents of 177K year over year.  

Note A consists of the significant accounting policies.  No change to the policies.  No fluctuations.  

Kate reviewed the additional notes, nothing of major importance was discussed.  COVID notes will drop off the following year.  Donated space from DOE at 1001 is noted.  Leases for the space is included.  Etc.

The OFI reviews the above and also breaks down distinctions between the school, Bronx Support Corp, etc.

The Single Audit is where we are awaiting the compliance supplement.  Testing is nearly complete, there are minimal open items at this time.  The report will stay in draft until that is all finalized.

All schedules prior to page 10 are summarized in the Summary of Auditor's Results.  No material weaknesses.  No matters of non-compliance, no audit findings, etc.

Title was tested (page 8), ESSER was tested for a number of years.  The dollar amount between A and B as well as the fact that Pharos qualifies as a low risk testee - Single Audit last two years without findings, etc.

Schedule of makeup of awards on page 8.  School is at 1million+ for federal awards.  This threshold is going up from 750K to 1MM.  The ESSER money will not repeat.  This puts the school at about 8K over the threshold of needing a Single Audit.  The school will likely continue to be over the threshold from an audit perspective.  

No changes to the report to the finance committee.  

For current financials - total days cash on hand is 127.  Courtney presented the enrollment portion.  On the Budget vs. Actuals there has been 4.2 million recognized against a budget of 17MM; 2.6 MM has been spent against a budget of 11.6 MM.  No major changes there.  OTP we have spent 1.5 MM against a budget of 4.8 MM.  On non-operating expenses we have recorded 97K in depreciation.  Still have a contingnecy on the budget which we can use if needed.  355K in surplus as of Q1.  Small break event expected by EOY.

Major change last year is from deferred revenue.  Assets 6.5.  Total assets 12MM.  OTher assets 2.8MM.  Total assets 21.4MM.  189K in Accounts Payable due to timing.  494K accured payroll. Processed payment for last week from September and October.  Equity of 8.8MM for SEptember close.  Strong balance sheet.

Rate of return was 1.04 or 37K increase. No major changes but we are in line with our inestment policy.  Recent matiurity of tBill on September 15.  Some upcoming as well, 11/15 and others on 11/30.  The next one is in the new year.  Board has given approval to Chase bank to reinvest.