MEMO

To: Members of the CPS Board of Education

From: Chandra Brown, CFE, CIAInternal Auditor

Date: November 21, 2014

Re: SCPA Update

I was prepared to provide the Board with a verbal update on SCPA on a couple of occasions but due to time constraints that was not feasible. So in lieu of that, I thought I would provide a written update instead. I've attached the Action Matrix that has been discussed in the Oversight Committee meetings. Based on the Special Meeting regarding SCPA,held on October 20, the Superintendent indicated that she would provide a list of items for SCPA; I defer any updates on academic related items to the Superintendent and her staff. I made notes to that effect on the Action Matrix, feel free to let me know if you think modifications are warranted. It would be ideal for me tobe provided withinformation on the status of the academic items to share with the Oversight Committee and LSDMC to have full circle communications as we move forward in this transition.It hasbeen requested from thebeginning of this process with SCPAthata written agreement be created that details theterms ofthe $45K Emergency Loan from CPS toSCPAthat includes therepayment plan. I e-mailed the Treasurer yesterdayrequesting a description of the process to manage the $45 Emergency Loan. An initial analysis shows that the spending from August - November MTD is approximately $53K (August = $4,200, September = $11,740, October = 27,494 and November = 10,136) with the $1K allocated for each month removed,the expenditure amount is at$49K which exceeds the agreed upon amount of $45Kby $5K, so far. This along with other financial analysis conductedhas impactedthe confidence in the management of funds and financial oversight to the point where the second-half of the donation of $130K could bedelayed.After multiple conversations, the Arts School Network will be on-site from 11/23-11/25 to conduct a review of SCPA. There is not a fee for them to come, so the cost is minimal. The two individuals that are coming Kristy Callaway, Executive Director and Donn Harris, ASNMember, Executive & Artistic Director, Oakland School for the Arts have just requested that their travel costs be covered. I've attached an itinerary for your review, feel free to participate where your schedule permits. ASN will provide a recap on Monday evening, at the ABC Office, where Board members, the Oversight Committee, Superintendent and Assistant Superintendentare invited to attend tohear the preliminary observations.ASN will be generating a report of their findings,shortly after completing their review which will be provided to the Board and Administration. Thank you for yourcontinued support & active participation in this process.

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