January Board Meeting Minutes January 28, 2015

Transcription

1 January Board Meeting Minutes January 28, 2015 Karon K. McFarlane, CPCS Chair called the meeting to order and welcomed everyone to the January Board of Trustees Meeting at 6:30 PM on January 28, Ms. McFarlane requested verification from the members present of The Notice of Meeting sent to each of the members of the board via . Each member noted the proper notification was received. Pursuant to the NY State Public Meetings Law the public notice of meeting was provided in the following manner thus meeting the law s requirement of media and public notice: The Wave via The New York Post via Public Posting at CPCS Office CPCS Website Home Page Ms. McFarlane called for the Board of Trustees roll call. Members present: Karon McFarlane, Ben Waxman, Frederica Jeffries, Andrew Barnes III Members absent: Dr. Daniel Cohen and Sonja Webber-Bey There were no public questions or comments. 1. The agenda was approved by common consent. 2. The Chair appointed Ben Waxman as Secretary Protem. 2. The minutes of the December 17, 2014 Board were approved by common consent. 3. The Chair called on Rev. Dr. Les Mullings for his monthly report. Dr. Mullings reported on the progress of the Middle School development and the finalization of the lease of Central Avenue, Far Rockaway for interim space for the Middle School. A. Dr. Mullings called upon LaToiya Tolliver-Revell for her report. She updated the Board on the academic engagement of the scholars since their return from the holiday break. B. There was not a report from the Parent Association. 4. The Chair called for the financial report for December 31, The report was approved by common consent.

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3 ATTACHMENT #1 School Leader Report

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7 ATTACHMENT #2 Financial Report

8 Challenge Prep Charter School Monthly Financial Report December 2014

9 Working Capital Debt BALANCE SHEET ENROLLMENT LIQUIDITY Challenge Prep Charter School Financial Summary For Period Ended December 31, 2014 Cash in Bank (Operating Account(s) Only: as of 12/31/14): $ 2,191,374 Projected months of cash on hand 3.5 Cash in Bank (Total - All Accounts: as of 12/31/14): $ 2,268,769 FY Ending Cash Available to Carryover to FY15-16 (Operating Account(s) Only) $ 784,561 *Cash balance available once all FY14-15 obligations & receivables have been settled Projected months of cash on hand 1.3 FY Ending Cash Available to Carryover to FY15-16 (Total - All Accounts) $ 861,957 Projected Cash Months of Cash All Accounts Operating - 1,000 2,000 3,000 Thousands Current Month Year End Year End Current Month (Dec.) Suggested Benchmark Months Actual Budget Variance Actual Budget Variance General Ed $ 5,734,826 $ 5,640,759 $ 94,067 SPED 0-20% (10.81) - - $ % $ - 60% - Over , ,882 $ 361,931 Total SPED , ,882 $ 361,931 Student Enrollmt. - Gen. Ed Budget Prior Period Current Period Budget Student Enrollmt. - SPED Prior Period Current Period ,000 18,500 18,000 17,500 17,000 16,500 Rev. per Pupil (YTD) Per Pupil Exp. Per Pupil (YTD) Target Actual <20% 20-60% >60% Actual Budget Total Current Assets: Assets $ 2,467,977 Total Current Liabilities: Liabilities $ 1,279,476 Working Capital (Current) Ratio 1.93 Total Assets: $ 3,224,761 Total Liabilities: $ 2,129,498 Debt Ratio 0.66 Total Net Assets: Net Assets $ 1,095,262 Assets & Liabilities Working Capital & Debt Ratios Assets Liabilities Net Assets - 1,000 2,000 3,000 4,000 Thousands Current Total PY Nov. Dec. Working Capital Debt Ratio 2 CSBM

10 BUDGETING / REVENUE & EXPENSES Challenge Prep Charter School Financial Summary For Period Ended December 31, 2014 Actual Budget Variance Total Revenue YTD: $ 3,919,354 $ 3,828,385 $ 90,969 Total Expenses YTD: (2,984,779) (3,135,152) 150,373 Net Operating Surplus(Deficit): $ 934,574 $ 693,233 $ 241,341 Projected Budget Variance Annual Projected Revenue: $ 7,950,414 $ 7,695,824 $ 254,590 Annual Projected Expenses (before depreciation): (7,336,228) (7,272,309) (63,919) Projected Net Operating Surplus(Deficit) before Depreciation: $ 614,186 $ 423,515 $ 190,671 Annual Projected Depreciation: (107,487) (107,487) - Projected Net Operating Surplus(Deficit) after Depreciation: $ 506,699 $ 316,028 $ 190,671 Capital Expenditure Requirements $ (175,069) $ - $ (175,069) Total Cash Expenditures (expenses excluding depreciation plus capital expenditures) $ (7,053,672) $ (7,164,822) $ 111,150 Revenue per Pupil (YTD) Rev. per Pupil $ 18,753 $ 18,455 $ 298 Expenditure per Pupil (YTD) Exp. Per Pupil $ 17,304 $ 17,440 $ (135) Year-To-Date (YTD) Year End (YE) Projection Net Operating Income Net Operating Income Total Expenses Total Expenses Total Income Total Income - 2,000 4,000 6,000 Thousands Actual Budget - 2,000 4,000 6,000 8,000 10,000 Thousands Actual Budget 100% Revenue Breakdown YTD 97% 100% Revenue Breakdown YE 97% 80% 80% 60% 60% 40% 40% 20% 0% 2% 2% 0% 20% 0% 3% 1% 0% State Grants Contributions Federal Grants Other State Grants Federal Grants Contributions Other 60% 53% 50% 40% 30% 20% 10% 0% Expense Breakdown YTD 21% 12% 6% 5% 3% Comp. Facility Benefits Prof. Srvcs. Curr. & Clsrm. Other 60% 50% 40% 30% 20% 10% 0% 50% Expense Breakdown YE 21% 14% 6% 4% 5% Comp. Facility Benefits Prof. Srvcs. Curr. & Clsrm. Other 3 CSBM

11 Challenge Prep Charter School Financial Variance Summary Fiscal Year Ending 6/30/2015 Comments Net Budget Surplus after Depreciation $ 316,028 Increase in State Grants 201,176 Figure includes Per Pupil and budgeted amounts for NYSTL, NYSSL and NYSLIB Increase in Federal Grants 19,562 Includes E-Rate and NCLB grants Increase in Contributions 33,850 Increase in Miscellaneous Income 2 Increase in Projected Annual Revenue 254,590 Increase in Compensation 91,076 Trending overbudget because of staff changes. May change based on hiring Decrease in Benefits (4,020) So far, lower costs than projected for FICA Increase in Administrative Expenses 21,148 Classroom and Office Furniture line over budget. $3,000 projected for emergency spending Decrease in Professional Services (29,781) Includes all consultant/professional fees. Security costs trending below budget based on lower rates from new contractor Increase in Professional Development 2,358 Includes Board expenses and staff professional development Increase in Marketing and Staff/Student Rec 363 Includes staff and student recruitment costs Decrease in Fundraising Expenses - Includes amount anticipated to be spent on Gala expenses Increase in Curriculum & Classroom Expenses 5,778 Includes classroom expenses, student information systems, NYSTL, NYSSL and NYSLIB (non cash) expenses. Decrease in Facility (40,261) Real Estate Tax line below budget based on tax reduction notification from landlord Increase in Technology/Communication Expens 17,257 Budget for the year exhausted, more spending anticipated Decrease in Miscellaneous Expenses - Includes membership fees and bank service charges Decrease in Depreciation Expense - Increase in Projected Annual Expenses 63,919 Net Projected Deficit Variance after Depreciation $ 506,699 4 CSBM

12 Challenge Prep Charter School Budget vs. Actuals Fiscal Year Ending 6/30/2015 Dec YTD Through 12/2014 Projected FYE 06/30/2015 Current Month Actuals July Dec Actual Budget Variance Actual Budget Variance Projected Jan June Projections Jan June 2015 Annual Budget Variance Comments Income 4100 State Grants 642, ,906 23,086 3,788,130 3,719,436 68,694 3,891,986 7,680,116 7,478, ,176 Figure includes Per Pupil and budgeted amounts for NYSTL, NYSSL and NYSLIB 4200 Federal Grants 15,654 17,989 (2,335) 64,872 76,449 (11,577) 139, , ,383 19,562 Includes E-Rate and NCLB grants 4300 Contributions (1,750) 32,500 (34,250) 66,350 32,500 33,850-66,350 32,500 33, Miscellaneous Income Total Income 656, ,395 (13,499) 3,919,354 3,828,385 90,969 4,031,061 7,950,414 7,695, ,590 Includes State and Federal Grants as well as anticipated receipts from Gala Expenses Compensation 5100 Instructional Staff 261, ,928 (4,281) 1,356,918 1,266,018 90,900 1,848,689 3,205,606 3,130,485 75,121 Salaries are trending over budget because of staff changes 5200 Non-Instructional Staff 21,503 20, , ,344 3, , , ,703 16,295 Includes non-instructional staff 5300 Pupil Support 17,623 24,677 (7,054) 98, ,506 (12,131) 184, , ,244 (340) Includes Guidance Counsellor, Social Worker and Parent Engagement Coordinator. Trending under budget because of A. Samuels' transfer to Administration 5000 Compensation 300, ,329 (10,556) 1,582,870 1,500,868 82,002 2,170,638 3,753,508 3,662,432 91,076 Trending overbudget because of staff changes. May change based on hiring 5400 Benefits 56,939 86,687 (29,748) 346, ,122 (173,237) 689,382 1,036,267 1,040,287 (4,020) So far, lower costs than projected for FICA 6100 Administrative Expenses 8,612 9,143 (531) 57,923 54,858 3,065 73, , ,794 21,148 Classroom and Office Furniture line over budget. $3,000 projected for emergency spending 6200 Professional Services 27,474 37,986 (10,512) 179, ,791 (45,729) 255, , ,615 (29,781) Includes all consultant/professional fees. Security costs trending below budget based on lower rates from new contractor 6300 Professional Development 1,832 4,475 (2,643) 6,755 12,580 (5,825) 23,566 30,321 27,963 2,358 Includes Board expenses and staff professional development 6400 Marketing and Staff/Student Rec 1, , ,430 2,463 2, Includes staff and student recruitment costs 6500 Fundraising Expenses - 1,667 (1,667) - 10,002 (10,002) 20,000 20,000 20,000 - Includes amount anticipated to be spent on Gala expenses 7100 Curriculum & Classroom Expenses 24,376 22,962 1, , ,772 12, , , ,649 5,778 Includes classroom expenses, student information systems, NYSTL, NYSSL and NYSLIB (non cash) expenses Facility 107, ,712 (890) 635, ,272 (17,226) 911,136 1,546,182 1,586,443 (40,261) Real Estate Tax line below budget based on tax reduction notification from landlord 8200 Technology/Communication Expens 2,773 3,213 (440) 23,383 20,378 3,005 34,650 58,033 40,776 17,257 Budget for the year exhausted, more spending anticipated 8800 Miscellaneous Expenses (3) 1,489 1, ,250 2,250 - Includes membership fees and bank service charges 8900 Depreciation Expense , , ,487 - Total Expenses 531, ,753 (54,968) 2,984,779 3,135,152 (150,373) 4,458,936 7,443,715 7,379,796 63,919 Net Income 125,111 83,642 41, , , ,341 (427,875) 506, , , Capital Expenditures Furniture, Fixtures & Equipment ,368-31, , , ,069 Includes all fixed asset items Facility and Construction (183) - (183) (4,148) - (4,148) 4, Website Total Capital Expenditures (183) - (183) 27,221-27, , , ,069 5 CSBM

13 Challenge Prep Charter School Cash Flow Projection as of December 31, 2014 Projected Jan June 15 January February March April May June July + Subsequent FY14-15 Items Beginning Cash Balance (Operating - 2,191,374 1,455,334 2,254,595 1,606,094 2,339,729 1,756,695 1,158,328 Projected Cash Receipts from 2,814,974-1,387,510-1,347,081 29, ,828 Operations (below) Projected Cash Disbursements from (3,991,597) (585,851) (588,249) (621,835) (586,779) (585,921) (598,368) (424,595) Operations (below) Net Cash from Operations (1,176,624) (585,851) 799,261 (621,835) 760,302 (556,367) (598,367) (373,767) Cash Receipts from Accounts & Misc Receivables (not included in revenue below) Cash Disbursements for Accounts - (63,366) Payable & Accrued Expenses Capital Expenditures (below) (166,823) (86,823) - (26,667) (26,667) (26,667) - - Accounts Receivable Other Other Ending Cash Balance (Operating Account) (1,009,801) 1,455,334 2,254,595 1,606,094 2,339,729 1,756,695 1,158, ,561 Other Cash Accounts (Net of - 77,396 77,396 77,396 77,396 77,396 77,396 77,396 Total Cash (All Accounts) (1,009,801) 1,532,730 2,331,991 1,683,490 2,417,125 1,834,091 1,235, ,957 6 CSBM

14 Challenge Prep Charter School Balance Sheet As of December 31, 2014 Total ASSETS Current Assets - Bank Accounts 1000 Cash 1001 HSBC Checking ,191, HSBC Checking , HSBC Checking HSBC Checking HSBC Money Market , Chase Escrow , Petty Cash 72 Total 1000 Cash $ 2,268,769 Total Bank Accounts $ 2,268,769 Accounts Receivable 1100 Accounts Receivable 29,554 Total Accounts Receivable $ 29,554 Other current assets 1300 Prepaid Expenses 69, Prepaid Insurance 15, Prepaid Rent 84, Due From Challenge Charter Network - Credit Card Receivables - Inventory Asset - Uncategorized Asset - Undeposited Funds - Total Other current assets $ 169,653 Total Current Assets $ 2,467,977 Fixed Assets 1500 Furniture, Fixtures & Equipment 1510 Office & Admin Computers & Equipment 14, Classroom Computers & Equipment 16, Classroom Furniture 216, Office Furniture 10,111 Total 1513 Office Furniture $ 10, Musical Instruments 11,095 Total 1500 Furniture, Fixtures & Equipment 268, Facility and Construction 121, Architect Fees 110, Fire Alarm System 7,500 Total 1525 Fire Alarm System $ 7, Kitchen/Cafeteria 153, Construction In Progress Leasehold Improvements 89,471 Total 1519 Facility and Construction 481, Website 11,000 Total 1610 Website $ 11, Accumulated Depreciation & Amortization 1710 Accumulated Depreciation (173,737) 1750 Accumulated Amortization - Total 1700 Accumulated Depreciation & Amortization $ (173,737) Total Fixed Assets $ 587,192 Comments 7 CSBM

15 Challenge Prep Charter School Balance Sheet As of December 31, 2014 Total Other Assets 1800 Security Deposits 169, Sales Tax Receivable - Total Other Assets $ 169,592 TOTAL ASSETS $ 3,224,761 LIABILITIES AND EQUITY Liabilities Current Liabilities Accounts Payable 2000 Accounts Payable 62,696 Total Accounts Payable $ 62,696 Credit Cards 2200 HSBC Credit Card - Total Credit Cards $ - Other Current Liabilities 2100 HSBC Loan Payable Accrued Salaries/Taxes Accrued Expenses Refundable Advance Unearned/Deferred Revenue 1,216,110 Total Other Current Liabilities $ 1,216,780 Total Current Liabilities $ 1,279,476 Long-Term Liabilities 2700 Deferred Rent Liability 850,022 Total Long-Term Liabilities $ 850,022 Total Liabilities $ 2,129,498 Equity 3000 Opening Balance Equity Retained Earnings 160,688 Net Income 934,574 Total Equity $ 1,095,262 TOTAL LIABILITIES AND EQUITY $ 3,224,761 Comments 8 CSBM

16 Challenge Prep Charter School Statement of Cash Flows As of December 31, 2014 Total OPERATING ACTIVITIES Net Income 934,574 Adjustments to reconcile Net Income to Net Cash provided by operations: Accounts Receivable 51, Prepaid Expenses 79, Prepaid Insurance (15,666) 1310 Prepaid Rent Due From Challenge Charter Network Accumulated Depreciation & Amortization Accounts Payable (36,036) 2200 HSBC Credit Card HSBC Loan Payable Accrued Salaries/Taxes (316,449) 2301 Accrued Expenses (60,923) 2302 Refundable Advance Unearned/Deferred Revenue 1,216, Exchange Transactions Real Estate Tax Payable - Sales tax payable - Net cash provided by operating activities $ 1,852,424 INVESTING ACTIVITIES 1500 Furniture, Fixtures & Equipment Furniture, Fixtures & Equipment:Office & Admin Computers & Equipment (5,752) 1511 Furniture, Fixtures & Equipment:Classroom Computers & Equipment (12,394) 1512 Furniture, Fixtures & Equipment:Classroom Furniture (13,222) 1513 Furniture, Fixtures & Equipment:Office Furniture Furniture, Fixtures & Equipment:Musical Instruments Furniture, Fixtures & Equipment:Computer Software Furniture, Fixtures & Equipment:Curriculum Facility and Construction 4, Facility and Construction:Architect Fees Facility and Construction:Fire Alarm System Facility and Construction:Kitchen/Cafeteria Facility and Construction:Construction In Progress Facility and Construction:Leasehold Improvements Website Accumulated Depreciation & Amortization:Accumulated Amortization - Facility and Construction:Fire Alarm System:Original Cost - Furniture, Fixtures & Equipment:Curriculum:Original Cost Security Deposits (10,000) 2500 Sales Tax Receivable - Net cash provided by investing activities $ (37,220) FINANCING ACTIVITIES 2700 Deferred Rent Liability Opening Balance Equity Retained Earnings - Net cash provided by financing activities $ - Net cash increase for period $ 1,815,204 Cash at beginning of period 453, Cash Cash:HSBC Checking Cash:HSBC Checking Cash:HSBC Checking Cash:HSBC Checking Cash:HSBC Money Market Cash:Chase Escrow Cash:Petty Cash - Undeposited Funds - Total Cash at beginning of period $ 453,566 Cash at end of period $ 2,268,769 Comments 9 CSBM