Mary Beth reviewed September financials

• Described current ratios as excellent

Mary Beth reviewed the income statement

• An additional line has been added called CARES Act as a reimbursable grant
• The revenue is recognized based on expenses incurred

S. Pressley asked about special funding that would average out to about $120k. Was that incorporated?

M. Rousseau said it was recognized under State funding sources

S. Pressley asked if we were going to back track to recognize spending

M. Rousseau confirmed this is recognized for all prior months

M. Rousseau reviewed expenses

• Largest savings in taxes, but the current number does not reflect the new staff that has just been onboarded

S. Pressley asked about additional art supplies along with additional leadership hiring. Have those been factored in?

M. Rousseau stated that current line items only show actual expenses. So if those things have not occurred yet, those have not been recognized.

B. Elliot asked if those items were included in the budget amendment

T. Williams confirmed.

B. Elliot confirmed that these were included in the current report.

B. Elliot reviewed the investment report

M. Cain reviewed the draft audit report

A. Bothner asked with regards to the change mentioned about deferred lease liability, is there anything the school needs to be aware of.

M. Cain said that this would mainly affect debt covenants and it won't affect items now. But debt to equity covenants would be entirely blown because liabilities would go up considerably.

A. Bothner asked where would that hit the asset side of the balance sheet?

M. Cain shared it would hit the property and equipment line.

S. Pressley said asked what's included in the Property and Equipment line.

M. Cain shared that it was mostly relative to rooftop construction.

M. Cain shared that she'd change sub-lease items to lease agreement because that better represents the actual agreement

M. Cain summarized the report as "clean" with no findings as far as right now. Shared that there are a couple of open items that need to be tested over the next couple of weeks, but she does not believe there will be any findings.

M. Cain shared that no significant audit adjustments, but there was a passed adjustment that had no material effect and there were no disagreements from management at this time.

M. Cain asked whether Finance Committee minutes are kept. A. Ames will send Finance Committee meeting minutes after July 2019.

M. Cain stated that it's unclear who's doing what in the FPP between LHA and Metropolitan. That should be made more clear.

M. Cain shared that cleaning up the ledger took lots of time because of the actions of the previous auditor, but that should be easier moving forward.

Open Items:

• Signed ref letter
• Legal response
• Couple of open SpEd items

M. Cain asked if the Finance Committee could vote on this report today.

A. Bothner asked if it's required legally for the Finance Committee to vote on this

M. Cain shared the legal background on this decision

Finance committee entered executive session at 5:03PM