Board Finance Committee Minutes 4 20 2022

Odyssey Charter Schools Public Board Finance Committee Meeting 2251 South Jones Blvd. Las Vegas, NV 89146
Phone: (702) 257-0578 Fax: (702) 312-3259 E-mail: Odyssey@odysseyk12.org
Wednesday, April 20, 2022
Minutes
Open Session – 5:00 PM
Call to Order:		Time: 5:00 p.m.

1. Roll Call Michelle Battle – Board Secretary Absent/Present
Board Finance Committee Members:
	Larry Moulton	Present
	Richard Douglas Alan Diskin	Absent Absent

Staff:	Tim Lorenz Superintendent of Schools	Present
	Shelli Guthrie Executive Director of School Operations	Present
	Robert Handwerker Director of Business & Employee Services	Present
	Michelle Battle Board Secretary	Present

2. Pledge of Allegiance: Larry Moulton

3. Introduce Guests: N/A

For Possible Action:

4. Accept Agenda

Motion:

2nd:

Board Discussion:

We did not have a quorum, so this meeting was discussion only.

Vote:

Information/Discussion:

5. Public Comments - None

Please limit comments to three minutes.

Action may not be taken on the matters discussed during this period until specifically

included on an agenda as an action item.

For Possible Action:

6. Approval of January’s Minutes

Attachment #1

Motion:

2nd:

Board Discussion:

Tabled due to no quorum.

Vote:

Information/Discussion:

7. Report on NRS 388A.521 - Limitation on Salaries of Administrators

Attachment #2

Motion:

2nd:

Board Discussion:

Vote:

We reviewed a comparison of the current administrative salary scales with the pay ranges for comparable positions at Clark County School District. Although this review was not required by CCSD, it was noted that we should monitor the information ourselves to ensure that we are within the requirements of NRS 388A.521.

It was noted that some of the salary scales for Odyssey administrators slightly exceeded those at CCSD. It was discussed that the NRS states that the compensation that was paid to an administrator, rather than the salary scales of the position, should be used for the comparison. In the event that our individual administrative compensation exceeded that of the comparable positions, we stated that we would comply with the requirements of the NRS. Further information on these requirements will be discussed during the upcoming Board Meeting.

Information/Discussion:

8. Financial Statements through December 31, 2021

Attachment #3

Motion:

2nd:

Board Discussion:

As these statements only reflect about 40% of the year-to-date budgeted expenditures, due to timing of payroll and benefits, an analysis of actual versus budget is complicated and provides little value at this point. Based on projections, we expect that Odyssey will exceed the budgeted target for Change in Net Position for the Year (2021-2022).

Vote:

Information/Discussion: 9. The Final Amended 2021-2022 Budget (staff bonuses are the only

only addition) Attachment #4

Motion:

2nd:

Board Discussion: This amendment reflects a single budget item, the approval of staff bonuses

approved at the 1/22/2023 Board of Directors meeting. The net effect is to reduce

projected year end reserves by approximately $350,000.

Vote:

Information/Discussion: 10. 2022 – 2023 Tentative Budget Attachment #5

Motion:

2nd:

Board Discussion:

We are required to prepare a minimum of three budgets per fiscal year; a Tentative due in April (the subject of this agenda item), the Final due in June and the Amended final due in December. Additionally, we are allowed any required budget amendments during the fiscal year.

This budget is prepared based on our understanding of the Hold Harmless legislation; if your 2022-2023 ADE is below 95% of the 2020-2021 ADE (2,520 * .95 = 2,394), then the schools are paid based on their 2020-2021 ADE.

As Odyssey is currently projecting ADE for 2022-2023 of 2,370 (the current year-to-date ADE for Odyssey), this Tentative budget is based on being paid at the Hold Harmless ADE of 2,520.

Additionally, it is possible that revenue per pupil will increase or decrease next fiscal year; as this is unknown at this point, the 2022 rate per pupil has been utilized.

The budget includes all projected position changes, lane changes, promotions and other staff changes (including the Executive Director of School Operations moving to a full-time position) and keeping all student programs as-is.

Based on using the Hold Harmless formula, Odyssey is projecting an increase in the General Fund reserve for FY 2023 of approximately $1,319,000, to approximately $7,041,000.

Had the actual 2022 ADE of 2,370 been used, the reserve would be projected to increase approximately $255,000. At 1 ADE below the 95% threshold of 2,520 (2,519), the increase is projected to be approximately $424,000.

The Special Education Fund reserve is projected to increase in 2023 by $425,000 to $1,304,000 life-to-date. The increase in the reserve for 2023 is less than 2022’s budget of $880,000 as Odyssey now has the knowledge of the Special Education funding model and the time to implement services to utilize the funding.

Odyssey will utilize these funds to increase special education staff hours providing direct student services.

The $1,000,000 capital improvement budget for tenant improvements for FY 2021-2022 is unlikely to be fully expended in FY 2022 and a portion of the cost will be in FY 2023. Once estimates can be made, the adjustment will be reflected in the next budget amendment.

The only significant change in funding is the reduction of At-Risk funding through the Pupil Centered Funding Plan from $508,000 in 2022 to $295,000 in 2023. Odyssey is currently researching the change in the State’s calculation of the funding determination to determine its appropriateness. Odyssey will utilize general fund revenue to ensure the At-Risk programs stay as-is in FY 2023.

In conclusion, when looking at Odyssey’s future from a macro perspective, given that we do not know exactly how funding will work after the expiration of the Hold Harmless, where our ADE counts or the revenue per pupil will be in 2024, and that our current margin based on current 2022 enrollment of 2,370 would be only $255,000, as discussed above, I caution that any growth in expenditures after FY 2023 be budgeted only with an expectation of a corresponding growth in ADE or funding per pupil (unless the Board wishes to utilize reserves to fund the additional expenditures).

Vote:

Information/Discussion: 11. Citizenship Participation --None

Please limit comments to 3 minutes.

Action may not be taken on any matters discussed during this period until specifically

included on an agenda as an action item.

For Possible Action: 12. Adjournment

Motion:

2nd:

Board Discussion:

Vote:

Time: 5:23 p.m.

Supporting materials for items listed on the above-referenced agenda are available, at no charge, at the meeting location, or by contacting Michelle Battle, Board Secretary, 2251 South Jones Blvd., Suite 6160, Las Vegas, NV. 89146, or by email mbattle@odysseyk12.org. This meeting will be held remotely, and you may attend through Google Meet, Meeting ID: meet.google.com/foo-nesy-smp, Phone Number: 1-585-969-5010, PIN: 711.526.704#

The Odyssey Charter School Board of Directors may take items on the agenda out of order; may combine two or more agenda items for consideration; and may remove an item from the agenda or delay discussion relating to items on the agenda at any time.

This agenda was posted on the Odyssey Charter School Web Page at www.odysseyk12.org, Nevada Public Notice Website at https://notice.nv.gov/ and in the following libraries: Las Vegas, Sahara, Clark County, Sunrise, Spring Valley, Whitney, West Charleston, Rainbow, and West Las Vegas.