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EPIC Charter Schools board accepts financial reports, outlines cost cuts after state-aid pressures
Summary
Board members heard that revenues exceeded budget for September but expenses remained high; administrators described personnel reductions and cash projections, and the board accepted financial reports and approved routine business and executive session.
EPIC Charter Schools board members on Nov. 14 accepted financial reports and approved routine business after administrators described recent personnel reductions and cash projections made necessary by pressures in state aid.
The superintendent—s office told the board that revenue for the month ended Sept. 30 was $91,700,000 and expenses were just under $82,000,000, leaving a fund balance of about $9,800,000. Presenting the numbers, Janice, the finance presenter, said the revenue-to-expense gap and the timing of state aid required "necessary cost saving measures" including canceled travel, suspended vendor contracts and pay cuts.
Board members received a fuller explanation of the midterm adjustment process from Janice. She said Oklahoma—s state aid is based on the weighted average daily membership in first-quarter attendance counts and that a state "true up" in January can raise or lower a school's final allocation for the year. Janice told the board that federal claims reimbursements would begin increasing revenue starting in October and that the board could expect the effects of expense reductions to appear later in the second quarter.
In remarks before the financial presentation, a board presenter described the recent weeks as "some of the most challenging times in the history of EPIC Charter Schools" and said the decision to reduce personnel "was not one we took lightly." He added that leaders had "explored every option to try and avoid such measures" and pledged to review internal processes to protect long-term stability.
The board voted several formal items related to administration and finance during the meeting. A roll-call vote accepted the financial report for the month and later accepted the financial statements; both votes were recorded as unanimous by the members present. The board also approved the consent agenda and subsequently voted to move into executive session. No votes were taken while in executive session, and the board reconvened and re-took the vote to accept the financial statements as presented.
The board and staff said the next fiscal milestone is the state midterm adjustment, which is typically announced in December while schools are on winter break; the board is scheduled to revisit budget implications at its January meeting.
Ending: Administrators said the revised cash projection places the school in a stronger position for the July pre-funding month but cautioned the projection could change depending on enrollment, the state factor rate and actual spending in coming months.
