September 3, 2009 Regular Meeting

Regular Meeting of the Board of Trustees
September 3, 2009
 
Minutes
 
In attendance:  Emil Ronchi, John McEnaney, Cynthia Canavan, Bob Sousa, Matt Cronin, Nina Cullen Hamzeh. Dr. de Koning arrived at 7:26. Dr Sullivan arrived at 7:54 Ms Cullen-Hamzeh departed at 9:05 Not Present:  Cathy Vaucher, Chris Fauci
 
Location: Community Room at the Marblehead Community Charter Public School, 17 Lime St, Marblehead MA 01945
 
The Board of Trustee Chair, Mr. Emil Ronchi opened the meeting at 7:15 P.M.   He began by reciting the mission of MCCPS. 
 
He went on to call for public comment. Noting there was no public comment, he continued.
 
Mr. McEnaney requested that the motion regarding the May 2009 minutes tabled at the last meeting be taken off the table. The Chair removed the motion from the table.
 
Decision: Mr. McEnaney moved and Dr. Sullivan seconded a motion to approve the minutes of the May 7, 2009 Regular Meeting of the Board of Trustees.
 
Yeas: 6 Nays: 0 Abstain 0 Motion Passes
 
Decision: Mr. McEnaney moved and Mr. Sousa seconded a motion to approve the minutes of the June 4, 2009 Regular Meeting of the Board of Trustees.
 
Yeas: 6 Nays: 0 Abstain 0 Motion Passes
 
Decision: Mr. McEnaney moved and Mr. Cronin seconded a motion to approve the minutes of the July 20, 2009 Regular Meeting of the Board of Trustees.
 
Yeas: 5 Nays: 0 Abstain 1 Motion Passes
 
Decision: Mr. McEnaney moved and Mr. Cronin seconded a motion to approve the minutes of the August 31, 2009 Regular Meeting of the Board of Trustees.
 
Yeas: 5 Nays: 0 Abstain 1 Motion Passes
 
Mr. Ronchi briefly discussed the agenda for the remainder of the Board, and with the concurrence of the Trustees, moved directly into the Goal Setting portion of the meeting. 
Trustees suggested potential goals, and there was significant discussion among Trustees which were the appropriate goals. The Board decided that the Goals for the year as follows:
 
Decision: Ms Canavan moved and Dr. de Koning seconded that the Board of Trustees adopt the goals stated below and that the Chair will disseminate a hard copy of the goals to each of the Trustees. 
  • Secure Charter Renewal
  • Govern the School Efficiently and Effectively. 
    • Trustee Training
    • Add two new members to the Board of Trustees
    • Succession Planning (Leadership)
  • Implement a Strong Financial Plan
    • Rebuild working capital
    • Create a detailed plan to increase non-tuition income to 10% of the School’s revenue
  • Lead the School in embracing the promises of the School’s Charter and Mission
    • Hire a Managing Director
    • Develop plan for community outreach
  • The School’s Facilities will enable the accomplishment of the School’s Mission. 
    • Prepare and Submit Charter Amendment Application
    • Create detailed project plan regarding the expansion  
 
Yeas: 8 Nays: 0 Abstain 0
 Motion Passes
 
 
The Chair called a recess at 9:05
 
The Chair called the meeting back to order at 9:12
 
Mr. Ronchi recognized Dr. Sullivan for the Treasurer’s Report, a copy of which is attached. Dr. Sullivan summarized key points from his report, and addressed several questions from Trustees. 
 
Decision: Mr. McEnaney moved and Dr. de Koning seconded that the Board of Trustees authorize the School to renew its revolving line of credit with Boston Private Bank and Trust and that Ms. Nina Cullen-Hamzeh and Mr. Jeff Barry are authorized signatories of the document along with Mr. Emil Ronchi, Board Chairman. 
 
Yeas: 7 Nays: 0 Abstain 0 Motion Passes
 
The Chair asked Trustees if there was any new business. 
 
Decision: Ms Canavan moved and Mr. Cronin seconded that the Board of Trustees vote to retain the services of the law firm of Hollander and Carey LLP for legal services as necessary to represent the School in legal matters at the agreed upon contracted hourly rate of $195/hour for three years, beginning September 4, 2009 to September 3, 2012, not including out of pocket expenses and excluding those matters that are currently being handled by attorney Barbara Buell. 
 
Yeas: 6 Nays: 1 Abstain 0 Motion Passes
 
Decision: Chair moved and Mr. McEnaney seconded that the Board adjourn to executive session under exception 3 of the Open Meeting Law, MGL Chapter 30A Section 11A1/2 for the express purpose to discuss strategy with respect to litigation.
 
Mr. Ronchi -- Yes, Dr. Sullivan – Yes, Mr. McEnaney -- Yes, Ms Canavan -- Yes, Mr. Sousa – Yes, Mr. Cronin -- Yes, Dr. de Koning – Yes, Motion passes
 
The Chair noted that the Board intended to be return to open session at the conclusion of Executive Session. 
 
The Chair adjourned to Executive Session at 9:58 PM
 
The Chair called the Regular Session back to order at 10:16.   
 
The Chair noted for the record that The School has received a written request from the attorney representing Mr. Tom Commeret requesting a copy of school minutes for the last three years.   The Chair acknowledged that the Board will cooperate with the request within the extent of the law. 
 
Decision: Mr. Sousa moved and Mr. Cronin seconded that the meeting be adjourned.
 
Yeas: 7 Nays: 0 Abstain 0 Motion Passes
 
The meeting adjourned at 10:17
 
Respectfully Submitted
 
John T. McEnaney
Clerk
 


John D. Sullivan, Ph.D., Chair Finance Committee
Report to the Board of Trustees
September 3, 2009
 
The Finance Committee met to discuss several issues on the morning of September 2, 2009. In the review of the Year End 2009 (June), there were several questions regarding how the financials were constructed that were brought to light and a considerable amount has been learned regarding state law and accounting procedures. 
 
The committee is pleased to let the board know that the school exceeded budget and delivered a surplus of approximately $103,000. The surplus is greatly due to higher revenue than expected, although the administrative team did a good job watching the expenses. Our Personnel expenses were slightly higher due to a necessary hire to support SPED and a few additional employees using their benefits (health). The Office and Administration expense was higher due to some legal work done over the year. Overall, I am pleased with the results. (attached)
 
Fin Com did spend a great deal of time developing our goals for the next year. We have determined the following actions should be taken:
 
  1. Address the refinancing of the long-term debt
  2. Push for a surplus greater than budget
  3. Create an easier format for reporting
  4. Create an analysis of the Expansion Plan
    1. Income Statements
    2. Cash Flows
    3. Break Even
 
We are also pleased to let the board know that our line of credit with Boston Private has been renewed. I have attached a Cash Flow analysis that we can discuss to inform each of you as to where we stand with our cash position.
 
In so far as our long-term loan (it will come due in June 2010), we have started negotiations and Mass Development is pulling together what our options may look like.
 
As a matter of courtesy, we discussed an option for the human resource function that will increase the number of health care plans at a cost savings to both the employees and the school. This plan would also make available a health care savings account, provide employees direct access to their benefits through the internet, and ensure HR compliance within the school. Questions from Fin Com were received and the details are being ironed out. Employees will be given an opportunity to hear about the new plans in the coming two weeks.
 
Nina will serve as the committee clerk going forward and Jeff will ensure that all meetings are posted as per the Open Meeting Law.
 
Lastly, Nina presented a proposal to purchase new Apple computers for the lab at a cost of $20,000. This will bring the school up to date and replace some equipment that is really not usable. The terms are presently being explored. I would like to get this in place as soon as possible so that the students and staff can take advantage of this great equipment sooner rather than later.
 
Lastly, I hope to bring a new member to Fin Com by our October meeting. He has a world of finance experience and would be of great insight. If approved, he would attend the Oct board meeting for potential questions.
 

Back

 
 
MCCPS FY09 Operating Budget
 
Approved
Actual
Variance
ITEM
DESCRIPTION
FY09 Budget
July-June
Assumed average PPE
$10,222
$10,383.66
# of Feb. 15th enrollees
230
CASH SOURCES:
1
STATE REIMBURSEMENT
$2,351,060
$2,388,241
2
FUNDRAISING - SCHOOL
$30,000
$51,125
3
OTHER
$3,500
$7,795
4
STUDENT ACTIVITY FUND
$17,250
$17,190
5
MCCPS EDUCATION FOUNDATION
$34,000
$29,890
6
INTEREST INCOME
$1,000
$233
TOTAL CASH SOURCES
$2,436,810
$2,494,474
$57,664
PERSONNEL:
7
SALARIES
$1,602,054
$1,606,396
8
ENRICHMENT
$25,000
$28,436
9
SUBSTITUTE TEACHERS
$0
$0
10
BENEFITS
$225,285
$236,202
11
STAFF DEVELOPMENT
$2,500
$3,875
12
SEARCH COSTS\SCHOOL LUNCH
$1,000
$0
 Sub-Total
$1,855,839
$1,874,909
$19,070
DIRECT STUDENT SUPPORT:
13
TEACHER'S SUPPLIES
$3,500
$7,374
14
CURRICULUM SUPPLIES
$17,500
$15,154
15
STUDENT SUPPLIES
$3,500
$7,225
16
SPED SUPPLIES
$1,500
$165
17
COMPUTER SUPPORT
$2,500
$1,670
18
COMPUTERS
$10,000
$0
19
FURNISHINGS
$2,000
$539
20
ALEKS\STUDENT ACTIVITIES\OTHER
$8,050
$17,102
21
NURSING SUPPLIES
$1,200
$719
 Sub-Total
$49,750
$49,948
$198
OCCUPANCY:
22
RENT
$239,515
$239,514
23
MAINTENANCE
$20,000
$32,627
24
CUSTODIAL SERVICES
$22,000
$21,933
25
CUSTODIAL SUPPLIES
$7,500
$6,590
26
UTILITIES
$63,500
$45,948
 Sub-Total
$352,515
$346,612
($5,903)
OFFICE & ADMINISTRATION:
27
SUPPLIES
$3,500
$4,044
28
EQUIP & COMM
$12,500
$19,167
29
LEGAL & ACCOUNTING
$10,000
$29,127
30
PAYROLL SERVICE
$4,000
$4,792
31
PRINTING & COPYING
$500
$779
32
POSTAGE & SHIPPING
$4,000
$1,171
33
INSURANCE
$21,443
$19,433
34
ANNUAL REPORT
$500
$0
35
BOARD EXPENSES
$500
$4,713
36
FINANCE CHARGES
$8,500
$9,128
37
FUNDRAISING
$10,000
$18,078
38
ADMISSIONS
$2,500
$4,828
39
HoS DISCRETIONARY\Other
$1,500
$4,208
Sub-Total
$79,443
$119,468
$40,025
Sub-Total, Cash Disbursed
$2,337,547
$2,390,938
$53,391
40
DEBT SERVICE
$44,789
41
CAPITAL EXPENDITURES
$13,500
TOTAL CASH DISBURSED
$2,395,836
$2,390,938
($4,898)
 
42
Excess/(Deficit)
$40,974
$103,536
$62,562
Margin
1.7%
4.2%
 
 
Includes latest 1 to 1 aid hire plus benefit ratio
Approved budget had excess of $50K
Increase due to DOE projected reimbursement
*Accrued Revenue based on Q1 & Q2 Revenue
 



 
Marblehead Community Charter Public School
Cash Flow Analysis Based on Fiscal 2009 Financials
Expected Annual Revenue from the State
 $             2,388,241
Other Income
 $                   76,343
Total Income
 $             2,464,584
Quarterly Income
 $                616,146
Annual Expenses
 $             2,390,938
Quarterly Draw
 $                597,735
MCCPS Cash
 $                241,914
80% of Quarterly Check or 350,000
Quarterly Cash Required for Break even
 $                355,821
Boston Private Quarterly Line of Credit
 $                350,000
Variance
 $                   (5,821)
 

Revised FY09 Page 1

Revised FY09 Page 2

Revised FY09 Page 3