Information sent to auditors. JK responds that there is one bond that has matured and rolled over. He was informed there is an opportunity to roll into a higher rate investment. He is going to invest in that analysis that would require longer term investments for longer maturities. MR responds we are removing all cash in money market. He is ok with having investments in short term investments. SP reports 4th sector will report on different cash investments and provide analysis on best practice. SP requests for report to be clearer on what a projected deficit, and to note that we are not in one. 

SR reports total cash 2.3 million. received per pupil funding in first week of July. Met with auditor about new lease tender, recording lease in our books. The auditors met with 4th sector to formulate best practice and software to record moving forward. 9.4 million total assets as of the end of this year. 44.9 million in assets, since we are recording liabilities based on new lease. MR asks to restate and explain increase. 4th sector abiding to a new standard. Overall financial position has increased since we are now recording the building as an asset. Total enrollment 673 students, we have recognized 17.9 in revenue. total expenses 17.5 million. We ended the year budgeting 33K deficit. 

AB requests to record the new jump and differences in asset change which is due to a new accounting rule. 

MR also requests for 4th sector to create a document we can add to BOT to reference in the future as well. 

SR replies that he will create something. Only change in metrics is due to the asset liability recorded. 

MR requested more information on the differences in surpluses. our surplus is 122,088, we ended the year on our forecasted surplus. This accounts for P/L. Our budgeted surplus was 33K deficit and we ended in a positive. 

17.7 million in revenue. Balance sheet contains ROU asset, Right of Use Asset, this is for the building. MR asks what circumstances allow us to add this to our balance sheet, long term lease, ownership? SR responds that any asset you have for more than 1 year, MR asks if you have a 40 year lease building, SR responds that you would add this as ROU. JK responds that if you have ROU then it becomes an asset. MR asks about how long the mortgage is on the property and SR responds 2022. MR responds that the value is a discount rate for what the value is now. Net present value. The other 3 changes are reflected in the liabilities. 700K is part of short term lease, deferred rent, is how much we pay for the lease. We apply this and adjust it with ROU value. There is none on June since it was adjusted with the ROU asset. SR responds defines deferred rent: accumulated balance, that is subtracted off of what we owe. Long term lease liability reflects the payments we will make until 2052. 

ROU based on net present value of lease, not value of building. MR asks if in 2051, at what point will we look at asset in book as market value? SR responds that we will continue monetizing lease payment in P/L, and it will continue to decrease. Will the building value ever go on our book? What will happen to our asset once we finish paying it? JK responds that it will be fully depreciated and that it will decrease in value, the only way to gain market value is to sell the building. SR responds that it is a liability based on payment. MR asks why the reasoning the law was changed? JK responds that this new law treats the lease as a capital lease, is a real asset since you can use it for 35 years and should be on your balance sheet. 

SP reports strategic goals were reviewed. She has discussed with Aaron and Malik. She is requesting feedback on where to start for the year, foundation points and success points. TB mentions we should define financial stability, SP asks what that would look like? She asks MR to speak on difficulty finding development person?  KB reports that having a diverse financial resource pool is a healthy goal. MR reports that we should adhere to and establish metrics. Thinking through with 4th sector and closely looking at cash flow. SP reports that financial stability is the most important and requests feedback on what that looks like. MR responds that establishing and monitoring financial metrics. 

TB leaves the meeting 4:59. 

SP discusses focusing on a narrative that all board members can refer to. SP discusses creating a high profile, high impact donor list. SP reports this is the Finance committee setting the bar, MR responds this is more what we can do and metrics we will me monitoring and managing. MR wants to understand what is realistic and attainable, SP reports this will allow expansion committee to uphold metrics. KB agrees with all that is presented. SP is requesting recommendations and mentions priority is to hire a Development Director. SP also mentions coaching someone into the right culture. SP asks if there is a top person out of everyone interviewed so far. MR responds that we do not have someone for that space yet. MR would like SP to meet some of the candidates to get her input as well. MR proposes a calendar to review pipeline and create a strategy to look at possibilities.