Finance Committee

Finance Committee Meeting

October 11, 3:00 p.m.

Attendees:  Jake Roberts, Annie Klawiter, Janine Nelson, Simon Tyler, Rebecca McMullen, Mary Schmelzer.  Guests:  Maria Musachio

1. Bank Reconciliation Reports
1. No concerns
2. Grants and Fundraising Review
1. Student initiated grant for small wind turbine:  grant received
2. CERTS grant:  part being used for “farmer-in-residence” on greenhouse project
3. Health and Wellness:  grant approved.  Will be used for health and wellness curriculum
3. Financial Due Dates
1. Annual audit to take place next week, October 19
2. Revised annual budget due to board for meeting on October 14
4. Expenditure/Revenue Report
1. No concerns, see discussion items that will impact future reports
5. Board Expenditures Comparison Report
1. Expenditure concerns:  Repair and Maintenance Service, Operation/Maintenance Supplies, Loan Interest
2. Finance committee recommends increase Repair and Maintenance Service budget by $3,000 (repairs due to flooding)
3. Finance committee recommends leaving Operation/Maintenance Supplies budget where it is with hopes of no more large expenses
6. Cash Flow Report
1. No concerns.
2. Report will need to be revised when stimulus money is received (see discussion)
7. FY11 Budget Revision
1. Revised budget due to board on October 14, 2010
2. Items in revised budget,

                                                               i.      Tech Service Fee:  finance committee recommended $3,000 be placed in budget

                                                             ii.      Arts Committee programs:  finance committee recommended $5,000 be placed in budget

                                                            iii.      Dance Program:  finance committee recommended increase of $1,100 to budget

                                                           iv.      Repair and maintenance:  Increased by $3,000 to cover flood damage

                                                             v.      Minnesota Jobs Fund increased Revenue approx. $28,000.00.  Fund balance amount was increased to reflect Jobs Fund revenue.

Budget Revision Summary:  The amended budget has revenue of $1,382,442.  Budgeting for a 2% fund balance policy requires that we have $27,648 remaining after expenses.  Our revised budget has a remaining fund balance of $55,470. 

8. Discussion
1. Maria Musachio recommended compensating the director for graduate school coursework

                                                               i.      In future, law may require charter school directors to have a principal’s license

                                                             ii.      Simon Tyler seeking a full program that will provide him master’s degree, with coursework to be performed outside of the school day hours

                                                            iii.      Simon Tyler will provide information to the finance committee on costs of programs being considered and schedule of enrollment/when costs would be incurred

                                                           iv.      Finance committee will not make any recommendations until further information is received and staff compensation policies can be reviewed

2. Annual Fund Balance

                                                               i.      2% of revenue budgeted annually

                                                             ii.      Fund balance is on track per 2% requirement

                                                            iii.      Fund balance was adjusted/increased in revised budget to include increase in revenue due to Jobs Fund revenue

3. Education Jobs Fund program

                                                               i.      Funding provided by 2010 Federal Education Jobs Fund, one-time disbursement of additional revenue

                                                             ii.      Final dollar amount not yet determined, it will be dependent upon enrollment, and will be approximately $30,000.  Only 90% will be received in 2011 fiscal year.

                                                            iii.      There are stipulations on how the funding is to be spent.  The intention of the Jobs Fund is to benefit teacher and others who provide K-12 school education.  Funding may be able to displace expenses already in the budget, freeing up revenue to apply to other line items

                                                           iv.      Finance committee recommends allocating funds at a later date should possible unknown expenses arise.

                                                             v.      Discussion about possible uses for Jobs Fund revenue included: currently budgeted items, additional programming, compensation and debt reduction.

4. Activity fees

                                                               i.      Fall 2010 is seeing increased student participation in activities at Northfield Middle School and High School

                                                             ii.      Student participation fees are charged back to ARTech

                                                            iii.      Budget item may need to be increased

5. Compensation Sub-Committee

i.    Janine Nelson and Jake Roberts will begin working on a compensation/benefits sub-committee to analyze ways to improve our current compensation policy.