Meeting of the Board of Trustees September 25, 2018 4:00-6:00 pm Nazareth Prep First Floor Conference Room
Conference Call Dial In: 1-866-906-9888, Participant Code: 2916309
Agenda
I. Welcome / Call to Order
II. Commissioning New Trustee: Michael Owens
III. Approve Draft Minutes 1. 6/11/18 Meeting of the Board of Trustees 2. 7/20/18 Phone Call of the Board of Trustees
IV. Holy Family International College Preparatory Program Director’s Report 1. Enrollment 2. Recruitment
V. Nazareth Prep Head of School’s Report 1. Admissions 2018-19 2. Class of 2018 Post-Secondary Outcomes 3. Internship Program 4. Apprenticeship Program 5. Faith and Service 6. Staffing Update
VI. Holy Family Foundation Executive Director’s Report 1. Golf Outing, Cannon’s Chop House 9/20, Courage House Luncheon 11/13 2. YES Fund Update
VII. Holy Family Institute President’s Report 1. Re-Accreditation with Council on Accreditation (COA) 2. Committee Participation 3. Risk, Quality, Compliance, and Mission Advancement Committee Report
VIII. Finance Report 1. June 30, 2018 Nazareth Prep Unaudited Results
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IX. Chairperson’s Report 1. Approve Nazareth Prep Racially Nondiscriminatory Policy 2. Present Bart Rocco for Board Service
X. New Business/Adjournment
Attachments: 6/11/18 Draft Minutes (p. 3-6) 7/20/18 Draft Minutes (p. 7) HFICPP Report (p. 8-10) Head of School’s Report (p. 11-19) HFF Executive Director’s Report (p. 20-21) Board/Committee Structure (p. 22) Nondiscriminatory Policy (p. 23) 6/30/18 Nazareth Prep Unaudited Financials (p. 24-32)
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Holy Family Academy dba Nazareth College & Career Prep Meeting of the Board of Trustees June 11, 2018 4:00 pm-6:00 pm Nazareth College & Career Prep First Floor Conference Room
Present: Father Tom Schaefer, Chair; Chris Phillips, Treasurer; Bill Cullen, Secretary; Sister Linda Yankoski, President of the Member; Lisa Abel-Palmieri, Executive Director, Doug Descalzi, Tyra Good, Michel Therrien Via Phone: John Olszewski Excused: Anthony Petroy, Vice Chair; Ken Service, Paul Uhler By Invitation: Debbie Gooden, Megan McCue, Mark Palastro, Mike Sexauer
I. Call to Order / Opening Prayer Reverend Thomas Schaefer, Chair, called the meeting to order at 4:00 pm, and Sister Linda Yankoski, President of the Member, opened in prayer.
II. Routine Matters The minutes from the March 12, 2018 meeting of the Board of Trustees were presented for approval.
A motion was made by William Cullen and seconded by Doug Descalzi to accept the minutes as presented. All in favor. Motion carried.
The Governance and Nominating Committee is recommending the appointment of Dr. Michael Owens to the Nazareth College and Career Prep (NCCP) Board. Father Tom provided background information on Dr. Owens, and both he and Lisa Abel-Palmieri met with him and endorse his appointment to the Board. Dr. Owens adopted children from Haiti that were placed at Holy Family Institute (HFI), and his wife was a very active volunteer in the past.
A motion was made by Sister Linda Yankoski and seconded by Tyra Good to recommend to the Member the appointment of Michael Owens to the NCCP Board for a three-year term commencing July 1, 2018. All in favor. Motion carried.
Michel Therrien will complete his first three-year term on the NCCP Board on June 30, 2018 and has been invited to serve another three-year term.
A motion was made by Doug Descalzi and seconded by William Cullen to recommend to the Member the appointment of Michel Therrien to the NCCP board for an additional three-year term commencing July 1, 2018. All in favor. Motion carried.
III. Consent Agenda The following items were previously distributed to the Trustees for review: 1. Risk, Quality, Compliance & Mission Advancement Committee Report 2. Emerging Leaders Board Report
3 With no questions or comments about the consent agenda items, a motion was made by Doug Descalzi and seconded by William Cullen to approve the consent agenda. All in favor. Motion carried.
IV. Holy Family International College Preparatory Program, Director’s Report Father Tom called on Debbie Gooden, Director of the Holy Family International College Preparatory Program (HFICPP) for her report. Enrollment is lower than in past years due to more competition with other boarding programs for international students. HFICPP has also received feedback that its boarding cost is high. Father Tom connected HFICPP to two new agents, one of whom will be recruiting students from India. This is an emerging market because families in India do not typically send students to high school in the United States. The second new agent will recruit students in Vietnam, Eastern Europe, and Latin America, in addition to in China.
Thirty-six students are currently enrolled for the 18-19 school year, but HFICPP will not be sustainable with fewer students than that. Visas are being given to fewer students coming from China and India, which could impact enrollment. Working with Sewickley Academy is beneficial to HFICPP in that it does its own recruiting of international students and sends these students to HFI after they have accepted them. HFICPP can only enroll students after they have been accepted by one of the high schools. Word of mouth is the best referral source for the program. The goal for the 18-19 school year is to have 45 students enrolled.
V. Nazareth College & Career Prep, Head of School’s Report Father Tom then called on Lisa Abel-Palmieri, Head of School. Fifty-five students are scheduled for orientation this summer, and 40 have been accepted. Management is confident that 65 new students will enroll for the 18-19 school year, for a total student body of approximately 170 students. Of the 15 students who will not be returning to NCCP in the fall, all but three were asked not to return. The school expects 30-40 additional applications through the summer months.
The enrollment portion of the NCCP strategic plan is being updated this summer. Starting this week, the admissions team plans to spend two days per week in the target communities of Avalon, Bellevue, North Side, McKees Rocks, Aliquippa, and the West End. A new marketing strategy that is being used is placing NCCP stickers on the pizza boxes of two local pizza shops. Additionally, radio commercials will continue, NCCP will host open houses for feeder schools, and a new admissions view book is being designed.
The students who just graduated have been admitted to over 40 different colleges and universities. The average amount of financial aid being offered to these students is $8,500, and 4 students were offered full scholarships. At the end of the school year, some students who had planned to attend college decided to instead go straight to career due to not receiving enough financial aid. Other college-bound students decided to begin their college courses at CCAC and then transfer to a 4-year college after completion of prerequisite courses. In the future, NCCP will focus on exploring employment at companies that offer tuition reimbursement, including MSA. Students are advised on scholarship opportunities as part of their curriculum currently.
In the internship program, students had a 94% success rate at their placement. One hundred fifty-four students maintained their internship positions throughout the school year, and ten students were dismissed from their site. Over 75% of the students were rated by their internship site supervisor as meeting or exceeding all mindsets, which include Executive Presence, Servant Leadership, Problem Solving, and Entrepreneurship.
NCCP is developing 3 pre-apprenticeship programs. The first is a STEM pre-apprenticeship, with course work in mechatronics at CCAC and hands on experience at MSA. This pre-apprentice opportunity, which
4 will launch in the fall, has been accepted by the PA Department of Labor and Industry and is the first program of its kind in Western PA. NCCP is also working with Community College of Beaver County and Shell to begin a Process Technician and IT pre-apprenticeship program. Finally, the school is communicating with Allegheny General Hospital to develop a pre-apprenticeship program in health sciences.
The school ended the year with a 91% average daily attendance rate and a suspension rate of 8%. Two hundred fifty restorative circles took place and the school began peer mentoring this school year. There is an average of 60 face-to-face meetings with parents each month.
VI. Holy Family Foundation, Executive Director’s Report Father Tom Schaefer then called on Michael Sexauer to give the Holy Family Foundation (HFF) report. The projected year-end contributed revenue total is $2,697,590 million, which is $220,410 under budget but is approximately $400,000 better than last year. Two items that are below budget are tax credits and corporate contributions, which must cover half of NCCP’s expenses for the school to be sustainable. The primary focus for M. Sexauer is securing paid internships, and he encouraged the Trustees to refer him and Sister Linda to companies where they have a connection. The school needs to secure 100 more paid internships over the next two years.
Upcoming fundraising events include the golf tournament on July 30 and a dinner event at Cannon’s Chophouse on September 20.
VII. Holy Family Institute, President’s Report Father Tom called on Sister Linda Yankoski to update the Trustees on Holy Family’s programs and on strategic planning. The strategic priorities were previously distributed to the Trustees for review. These priorities were developed during the board member strategic planning retreat and are divided into three areas: financial stability, mission and brand, and talent. The one-year goals and action steps have been developed by all programs.
Sister Linda shared that Holy Family has been asked to expand its Home-Based Family Recovery program, which serves families with a parent actively using substances and a child under the age of 3. RK Mellon will be providing funding to the program to increase the number of families that can be served. The Student Assistance Program has been invited to serve 5 additional schools, and the Specialized Learning program will be opening a second location in North Versailles in the fall.
Journey of Hope (JOH) has been receiving younger children since families began to be separated at the border. This program may expand to have capacity for 57 children depending on the needs of the Office of Refugee Resettlement. The Holy Family campus is being fully utilized, and the gym bathrooms are currently being remodeled. The entire campus will be getting paved starting on Monday.
VIII. Finance Report Father Tom called on Mark Palastro, CFO, to provide a summary of the 3/31/18 financial statements and the 2018-2019 Budget. HFICPP had an operating surplus of $41,134 for the period, or a favorable variance of $110,898, due to lower personnel costs, lower agent fees, lower administrative cost, and lower supplies and food costs. NCCP had an operating deficit of $105,158, or an unfavorable variance of $139,981, due to lower grants and donations, lower corporate internship revenue, lower federal food revenue, higher professional fees, and higher travel expenses. HFF had a favorable variance of $237,174 for the period due to higher return on investments and lower administrative cost.
5 A motion was made by Doug Descalzi and seconded by Chris Phillips to accept the 3-31-18 financial statements. All in favor. Motion carried.
Approve the 2018-2019 Nazareth College & Career Prep Operating Budget The high school will end the 17-18 year near projection, which is approximately $400,000 under budget for revenue. The 18-19 NCCP budget includes revenue of $5,598,800, which is a decrease of $610,100 from the FY18 budget, due to less students budgeted in HFICPP and a lower grant from HFF to NCCP ($1.1 million in FY19 versus $1.5 million in FY18). The 18-19 budget also reflects the new methodology for allocating indirect costs based on each program’s salaries and benefits. Growth of programs to share expenses resulted in lower indirect costs from FY18 to FY19.
There is an increase in supplies expense of $46,500 due to an increase in cost per meal for students and an increase in travel expenses from FY18 to FY19 due to transportation costs. HFICPP’s budget is based on a lower census than FY18, so its professional fees, staffing expense, and revenue have also dropped. Included in the 18-19 capital budget for HFICPP is replacing a roof on one of the cottages.
A motion was made by Doug Descalzi and seconded by Bill Cullen to approve 18-19 NCCP operating and capital budgets. All in favor. Motion carried.
IX. New Business Another required board action that was presented for approval was the hiring of the new food service management company, Metz Culinary Management, who will begin to manage all of Holy Family’s food services next month. HFI Specialized Learning is currently receiving its meals through Metz Culinary Management and is happy with the quality of the food and customer service.
A motion was made by Doug Descalzi and seconded by Chris Phillips to approve the hiring of Metz Culinary Management to manage the food services for NCCP. All in favor. Motion carried.
X. Executive Session The staff was excused at 5:45pm for the Executive Session.
XI. Adjournment With no further business to discuss, the meeting was adjourned at 6:00 pm.
Respectfully submitted,
William T. Cullen, Secretary Nazareth College and Career Prep Board of Trustees
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Holy Family Academy dba Nazareth College and Career Prep Meeting of the Board of Trustees via Conference Call July 20, 2018 at 8:00 am
Conference Dial In: 1‐866‐906‐9888 Participant Code: 2916309#
Present: Father Tom Schaefer, Chair; Anthony Petroy, Vice Chair; Chris Phillips, Treasurer; Sister Linda Yankoski, President of the Member; John Olszewski, Michael Owens, Michel Therrien, Paul Uhler Excused: Bill Cullen, Secretary; Lisa Abel‐Palmieri, Executive Director; Doug Descalzi, Tyra Good, Ken Service By Invitation: Megan McCue
I. Call to Order / Opening Prayer Father Thomas Schaefer, Chair, called the meeting to order at 8:00 am, and Sister Linda Yankoski, President of the Member, opened in prayer.
II. Approve Corporation Name Change to Nazareth Prep Father Tom briefly reviewed the materials that were previously distributed to the Trustees, including the revised bylaws, the amended Articles of Incorporation, and a resolution that needs to be approved by the Board to indicate approval of the corporation name change to Nazareth Prep.
Sister Linda explained that the state did approve the fictitious name Nazareth College and Career Prep in March, but when the Articles of Incorporation were filed to officially change the name of the corporation, the Department of Education rejected the name due to its use of the word “College.” Sister Linda spoke with the Secretary of the Department of Education, who informed her that the name Nazareth Prep would be approved. The high school was able to put its uniform order on hold until proof of approval of the name change to Nazareth Prep is obtained from the state. Michel Therrien asked if management had considered the name Nazareth Career Prep, and Sister Linda responded that this name was not considered because it might give the impression that the high school is a trade school.
A motion was made and seconded to approve the corporation name change from Holy Family Academy (dba Nazareth College and Career Prep) to Nazareth Prep. All in favor. Motion carried.
III. Other Business/Adjournment Sister Linda introduced new Trustee Dr. Michael Owens who was on the call and shared that he and the other new board members will attend a new board member orientation this summer.
With no further business to discuss, the meeting was adjourned at 8:10 am.
Respectfully submitted,
Megan L. McCue, Recording Secretary Nazareth Prep Board of Trustees
7 Holy Family International College Preparatory Program Report to the Board September 25, 2018 Program Information:
1. Program Statistics: Inquiries: 25 Applicants: 24 Accepted: 14 Enrolled: 6 new students
Students Current Actual Actual enrollment 2017 2016 2018 Homestay 1 4 5 Dorms 35 41 46 Total 36 45 51
The budget is 45 students for the 2018 – 19 school year. To adjust for the lower census, staff positions were reduced and supervisors and program director have adjusted their schedules to assist with evening and weekend student supervision and transportation.
2018/19 Enrollment to Date Schools Total Bishop Canevin 4
North Catholic 8
Quigley Catholic 1
Seton LaSalle 2
Vincentian 14 Academy
Sewickley 6 Academy Our Lady of 1 Sacred Heart Total 36
8 2. Recruitment: All agents reported challenges for enrollment including increased competition with many additional schools throughout the U.S and a perceived negative attitude toward immigrants in the U.S. A contract was signed with a new agent to market and recruit students from India. This is an emerging market for high school students. Also, another new agent is recruiting in other Asian countries. One of our current student’s father, who is an official at the embassy in China, has connected us with a person to recruit students. The HFICPP website will be reformatted in order to enable staff to add weekly updates of student highlights for recruitment. Ivy has enrolled two new students for Sewickley Academy. NIESL has enrolled new students at OLSH and North Catholic. Forward Pathways, a new agent, is developing a “Partner School” model in which an international school in China will be matched with possibly two of our schools for direct referrals for 11th and 12th grades. Program staff will continue to coordinate tours of the campus and schools for prospective students.
3. New Strategies for Recruitment: Winter shadow program: Agents have requested the coordination of a program for students to come to our schools during winter break in China (two weeks) to shadow students in our schools and participate in cultural activities in the Pittsburgh area. This seems to be an effective strategy for recruitment. Summer programs: Agents from China and India have requested summer programs where students have the opportunity to take classes for high school credit. A meeting was held with school officials at OLSH and they are interested in exploring this opportunity. They need to determine the required criteria from the state for offering credit and SEVIS requirements for issuing visas. The target number of students is 20.
4. Student Honor roll for fourth quarter: Sewickley Academy: 100% High Honors Vincentian Academy: 30% High Honors, 45% Honors Quigley Catholic: 50% High Honors Seton LaSalle: 33% High Honors, 33% Honors North Catholic: 43% High Honors Bishop Canevin: 20% High Honors, 40% Honors
Shiyuan Wang (Jim) was selected for induction in the Cum Laude Society at Sewickley Academy. The honor acknowledges a great deal of hard work, dedication and commitment to academic excellence.
9 5. Student Activities: The students continue to be very integrated into school activities. For the beginning of the school year, students are participating on school football, soccer, tennis, and cross county teams. Several students have join the band or orchestra at their school. We will continue to encourage their participation in school activities as a way to integrate with American students.
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Head of School | Board Report September 2018
Executive Summary The 2018-19 school year started on a positive note overall. While it was too early to see a significant return on investment from the name change, school spirit and pride in the new name is obvious. We welcomed 55 new students this fall; this is lower than our goal of 60 new students. Additionally, the freshman class is smaller than what we would like to see. Therefore, intentional effort will be spent on getting 9th grade transfers. The admissions team has redesigned the strategic enrollment and marketing plan and action items are underway. The internship programming gained several new non-profit partners and paid sponsors. Additionally, the pre-apprentice program in Mechatronics was officially launched. Two of our graduates are now working in apprenticeships because of this program. We’re in conversations with Duquesne Light and Shell to launch pre-apprentice programming this spring. Academically, we ended the year with solid outcomes overall but did dismiss seven students for attendance or academic issues. All of these students were receiving extra support through an internal student improvement plan and a few were also receiving support for the AiU (Allegheny Intermediate Unit) in reading and math. Our opening school mass took place on August 31st as we welcomed new and returning students. We’ve also logged over 20 hours of community service in the first few weeks of school with three partners. Transportation has rolled out the SafeStop App and brought all driving of routes (AM/PM and intern days) in-house by training three new CDL drivers. We estimate this savings of 106k. Additionally, savings were made by reducing positions or making them part-time and cutting programming from our Network Campus Program. We hired six new faculty and staff which includes 50% people of color. We are hosting a Holy Family Teaching Corps member and a Holy Family Service Corps member this year, as well.
11 Admissions, Enrollment and Marketing Review
● The 65 students accepted include 10 students who transferred mid-year during the 17-18 school year. 55 new students started this school year. However, only 34 are freshman. ○ Action: Continue offering rolling admission with a goal to add at least 15 students, six being freshman. ○ Action: The admissions exam continues to be the point in the application process where students do not continue. The admissions team works closely with families to ensure this step is not a barrier by offering admissions exams by appointment in addition to the monthly offerings. This year we will be piloting community-based admissions exams that we plan to hold monthly at Carnegie Library Branches around the city. ● Students not accepted for 18-19 were due to low academic performance, behavior or conduct that was not mission appropriate. ○ Action: Working closely with counselors at feeder schools to attract more mission appropriate student and ensure they understand the population of students we serve. (For example, schedule Nazareth Prep Experience Days for feeder schools to bring entire 7th and 8th grade class for a shadow day.)
● No acceptances were rescinded after new student orientation, which reflects increased due diligence during the admissions decision making process. ○ Action: Continue this process into this admissions season
12 ● Other schools selected by accepted students were most often City High Charter, Pittsburgh Science and Technology or Cyber School (typically students chose cyber school because they decided they would not be successful, for a variety of factors in a regular education school. A few of these applicants thought we were for students with behavioral health needs). ○ Action: Emphasize athletics, 4 year Internship Program, relationship building/family-like and multiple pathways in marketing to differentiate from competitors who lack in these areas. Continue to build new brand. ● As we embark upon the 2019-20 admissions season the admissions team will continue to clarify misperceptions about the school and include increased marketing through video, print ads, and radio focused on highlighting recent graduates with a focus on post-secondary pathways they are pursuing. Additionally, the admissions team anticipates the name change of the school will help create a different perception.
13 Current Enrollment as of September 2018
2018-19 Student Enrollment by Grade
Total Grade Boys Girls Enrollment
9th 16 18 34
10th 21 20 41
11th 15 15 30
12th 23 15 38
Total 75 68 143
Due to a lower enrollment we have adjusted our staffing by eliminating or making positions part-time. Additionally, we have reduced outside partners and several other lines.
Historical Admissions Data Year over Year
New Total Student Body School Year Inquires Applications Students Enrollment Growth Enrolled
2014-15 86 N/A
2015-16 37 89 + 3%
2016-17 123 70 38 116 +23%
2017-18 185 122 75 161 +28%
14 Retention Our retention rate was 89%. Students who did not return either did not meet academic, attendance, or conduct policies, selected another school or had a transportation barrier.
2018-19 Retention by Grade
September June 2018 Grade Not Returning New Students 2018 Enrollment Enrollment
Rising 10th 42 6 5 41
Rising 11th 32 5 3 30
Rising 12th 37 2 3 38
2018-19 Demographics At a Glance ● 50% Male and 50% Female students ● 70% Black, 22% White, 5% Mixed-Race and 2% Other ● 7:1 faculty to student ratio ● 100% of students receive need-based financial aid and scholarships ● Students represent 35 zip codes and 15 school districts
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Enrollment Events ● Attended McKees Rocks Festival and met with local government officials ● Campus Tour with John Jordan from Aliquippa Impact (9/13) ● High School Fair Penn Hills Charter School (9/25) ● Table at Northside Steelers vs. Garfield Gators Little League Football game (9/29) ● Creating new marketing videos featuring current students, alumni and parents in advance of the October open house, scheduled completion date is 1st week in October ● Scheduling School visits at feeder schools ● Advertised with local churches/congregations in feeder neighborhoods ● Updated strategic enrollment plan and begin marketing research to inform the next admissions season
Tuition and Financial Aid Nazareth Prep collected a little over $120,000 in tuition for the 2017-2018 school year. Past due balances have been carried over to the tuition collection efforts for the 2018-2019 school year student accounts as prior year balances and the Admissions and Financial Aid team is actively working to collect all past due balances, which is approximately $15,000.
To date, roughly $24,000 has been collected in tuition for the 2018-2019 school year, which is in line with the amount collected during this time last school year. This includes six paid in full families.
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Internship & Pre-Apprentice Program Update
New Partners and Retention ● New Partners ○ United Steelworkers (paid) ○ Tull Family Theater (non-profit) ○ Alcosan (non-profit) ○ Center That Cares (non-profit) ○ City of Asylum (non-profit) ○ Partners 4 Work (non-profit) ○ Penn Hills Charter (feeder school) ○ Uncommon Grounds (non-profit) ○ Will Allen Foundation (non-profit) ○ Whirl Magazine (in-kind) ● Lost/On Hold Internship Placement ○ Clearview (retained funds) ○ Pittsburgh Mailing (retained in-kind) ○ Penguins Foundation (on-hold, retained funds) ○ Raff Printing (will likely retain EITC funds) ● Many new partners in are in process but Duquesne Light is a highlight and close. ● Interviews - several partners are now requiring interviews before they agree to take an intern. Eric Gibson is coordinating the paperwork and interview process. ● Clearances - the PA Dept of Education is now requiring Nazareth Prep (and Cristo Rey Philadelphia) to obtain clearances for all internship mentors (supervisors) regardless of our Federal Waiver. This process is beginning now; partnering with BIB to obtain clearances. ● Career Fair - 12 vendors, 100 visitors ● Mentor Orientation - 45 mentors
Pre-Apprentice Program ● Launched first pre-apprentice program in Western PA with MSA and the German American Chamber of Commerce of Pittsburgh ● Working on launching a pre-apprentice program with CCBC and Shell ● Working on diversity initiative with Duquesne Light Co ● Plans to apply for catalytic grants from the Pennsylvania Department of Labor and Industry ● Plans to hire a pre-apprentice coordinator/internship assistant to educate parents, boost interest among students ● Will host a public forum open to our community and other schools about apprenticeships. Target audience: parents and guidance counselors. Commitments from: MSA, Shell, Duquesne Light Co to speak on a panel.
Nazareth Prep 2018-19 student surveys indicate interests remain STEAM, well rounded and matching our region’s employee gap needs. With more corporate support, Nazareth Prep has great potential to remain a resource for Pittsburgh’s economic stability. Moreover, Nazareth Prep could be the method of bringing increased equity, diversity and inclusion to our partners and in turn boosting their profitability. 17
Academics & Post-Secondary Pathways Results
School Success Profile: ● 52% of students were on honor roll or high honor roll ● 25% were close to being on honor roll (2.5-3.0) ● Average daily attendance ended at 92% for the year ● The suspension rate for the year was 7% compared to 6% the prior year. ● 75% of 10-12th grade students are on-grade level for math (vs less than 10% when they entered 9th grade) Students averaged nearly 38 lessons in our blended math program and 9th grade (now 10th) showed the largest gains.
Class of 2018 Post-Secondary Results: ● 100% of students who applied to college got into 2+ colleges ○ However, some could not attend due to financial aid/costs so they deferred to CCAC (9 students) ○ Avg ACT score 23 (national average is 21 for all students, SoC National Avg is 17) ● 61% 4 year college ○ Close to 40 colleges and universities both locally and regionally ● 20% 2 year college ○ All are at CCAC except 1 student in trade school ● 10% direct to career ● 9% trade or apprenticeship ○ Carpenters Union (2) MSA (2)
Faith & Service ● Launching “Saint of the Month” program ● Service learning will take place on internship in-service days this year ● New faculty all introduced to CSFN Videos and Catholic Education presentation ● Opening mass held on 8/31.
Operations & Technology Update ● Chromebooks roll-out went well; 9th graders not taking them home until next month.
18 ● Brought all transportation in-house by training 3 CDL drivers and currently all buses have passed state inspection. We estimate a savings of 106k by bringing this in-house and getting our vehicles up to speed. ● All students received new uniforms and fleece due to a generous donor.
Miscellaneous ● Lisa invited to attend Roundtable with the US Secretary of Education, Betsy DeVos ● Attending Schools That Can “Transforming Learning” Incubator at DaVinci Schools 10/4-5 with a small team from Nazareth Prep ● Staffing Update - New Hires and Open Positions ○ Dr. Stacy Tweedy, Cultural Literacy ○ Christine Callas, Cultural Literacy ○ Richard Street, Student Success Manager ○ Aaron Chapman, Coordinator of College and Career Counseling ○ Nehemiah Brazil, Driver ○ LaShaya Freeman, Driver ○ Melanie Meiser, Driver ○ Cassandra Merriweather, Driver ○ Krystal Hanna, HFSC ○ Angelia Hernley, HFTC ○ OPEN: STEM and Math Teacher ○ OPEN: Girls Basketball Coach (Head) ○ OPEN: Pre-apprentice coordinator/clerk
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Executive Director Report to Trustees 9/19/2018
I. 2017‐18 HFF Financial Summary a. FYE18 Private Charity donations of $2.33M compared to $1.88M for FYE17 not including investment income or gains. An increase of $450K or 24% year‐to‐year.
b. Private Charity total was ‐$114K or ‐5% under budget. Only line item to miss budget was tax credits by ‐$154K on a budget of $748K.
c. Direct (operating) expenses were $377K FYE18 compared to $473K FYE17 not including grants to related parties. The year‐to‐year savings of $96K came from one fewer FTE and lower professional fees due to change in portfolio manager.
II. Fundraising Specific to Nazareth Prep a. Restricted gifts to Nazareth Prep were below budget by ‐$678K on a budget of $865K (part of HFF Private Charity budget).
b. Unrestricted gifts $757K on a budget of $357K or 212% over.
c. Corporate internship partners (not tax credits) were $346K on a budget of $475K for a shortfall of ‐$129K.
III. Funded Internship Retention and Growth a. Internal goals are to grow the partnership base by 30% annually, and to retain 85% of companies that provide funding through tax credits, grants, events, etc.
b. Concluded the 2017‐18 school year with 41 partners supporting 79 internships. i. Need to add 13+ new funding partners and retain 35 to meet goals. ii. Added United Steelworkers at the start of the school year. iii. Four have not renewed: MARC USA, Raff Printing, Pittsburgh Mailing (our choice) and Clearview FCU. Only company to confirm lost funding is MARC USA. iv. Current number of funded internships stands at 78 and projected revenue from these partners is $740K.
IV. Short List of Hot Prospects Duquesne Light ANSYS PittOhio Citizens Bank Covestro WabTec Northwest Savings Mongiovi & Sons Contractors ATI New AHN Properties Quest Diagnostics Howard Hanna
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V. 2018‐19 Forecast a. Significant opportunities to increase tax credit donations to the YES Fund by partnering with central PA scholarship group.
b. Entering into a contract with a tax credit specialist for development.
c. Restricted gifts received total $395K plus a written commitment of $100K. The budget is $775K for restricted gifts leaving $280K to reach our goal. Asks pending for RK Mellon and Heinz Endowments.
d. Golf net revenue up by $5K over FY17 to $76K.
VI. Journey of Hope News Coverage a. 344 donors including 177 gifts in kind and 167 monetary gifts.
b. Only 10% of all gifts came from existing donors.
c. Monetary donations totaled $41,634.
21 HFI Boards and Committee Structure 2018-2019
Finance Holy Family Institute Board (14 voting) Holy Family’s Leadership Team Mark Minnaugh, Chair Francine Cameron Audit Committee Staci Brogan, Chairperson Judith Griggs Sister Linda Yankoski, President / CEO John Olszewski John Olszewski, Chair Sr. Linda Yankoski, President (ex-officio) Sr. Maria Kruszewski Lisa Abel -Palmieri, Head of School / Chief Learning Officer John Pelusi Mark Minnaugh Rosanne Saunders, Vice Chair John Pelusi Debbie Gooden, Director of HFICPP Christopher Phillips Mark Minnaugh, Treasurer Monique Polas Lynn Guerra, Director of Holy Family Service Corps Monique Polas Megan McCue, Director of Administrative Services Nick Vari Rosemary Corsetti, Secretary Rev. Thomas Schaefer Loretta Adams Sally Wade Mark Palastro, Chief Financial Officer Sr. Linda Yankoski (ex-officio) Kim Radler, Director of Human Resources Mark Palastro ** 401K Oversight Francine Cameron John Wingerter Michael Sexauer, Executive Director, Holy Family Foundation Sally Wade, Chair Sr. Melanie DiPietro Elizabeth Stephenson, Director of Mental Health & Behavioral Human Resources & Elisa Cavalier Health Services Compensation Bill Cullen Vince Tarquinio, Manager, Risk, Quality, & Compliance Rosanne Saunders, Chair Peter Germain Brandon Thompson, Maintenance Manager James Haggerty Mark Palastro Toni Whitehead, Director of Community Services Anthony Petroy Kim Radler Sally Wade Sue Sanford** Sr. Linda Yankoski (ex-officio) Sr. Linda Yankoski (ex- Kim Radler ** officio)
Nazareth Prep Board (12 voting) SMVCF Board (4 voting) HFF Board (14 voting) Governance & Nominating Fr. Thomas Schaefer, Chair James Haggerty, Chair Morgan O’Brien, Chair Investment Rosemary Corsetti, Chair Anthony Petroy,Vice Chair Mark Palastro, Treasurer Peter Germain, Vice Chair Elisa Cavalier, Chair Staci Brogan Peter Germain Christopher Phillips, Treasurer Rosemary Corsetti, Elisa Cavalier, Treasurer Sister Melanie DiPietro James Haggerty William Cullen, Secretary Secretary Ralph Fischer, Secretary James Haggerty Michael Sexauer (ex- Mark Matera Sr. Linda Yankoski, HFI President Sr. Linda Yankoski, Sr. Linda Yankoski, HFI officio) Father Tom Schaefer (ex-officio) President President (ex-officio) Phillip Ulrich Nick Vari Lisa Abel-Palmieri, Head of Michael Sexauer, Executive Sr. Linda Yankoski Sr. Linda Yankoski (ex-officio) School (ex-officio) Director (ex-officio) Mark Palastro ** Doug Descalzi Maureen Blayney Tyra Good Charles Casalnova Risk, Quality, Compliance, & John Olszewski Anna Clark-Emerick Mission Advancement Michael Owens James Haggerty Judith Griggs, Chair Kenneth Service Timothy Holt Loretta Adams Michel Therrien (ex-officio) Laura Karet Maureen Blayney Paul Uhler Mark V. Matera Sr. Melanie DiPietro Sr. Maria Kruszewski Philip Ulrich * Committee Mark Matera Nicholas Vari Member (non board Michael Owens member) Sr. Linda Yankoski (ex-officio) ** Holy Family Staff Robert Young* Vince Tarqunio ** 22 18-19
The Board of Trustees respects the rights, dignity, and worth of all people and desires to provide a safe school environment that allows all students equal access and opportunities at Nazareth Prep. Therefore, the Board of Trustees adopts the following Non‐Discrimination Policy:
Nazareth Prep admits students of any race, color, national or ethnic origin to all the rights and privileges, programs and activities. We do not discriminate on the basis of race, color, national or ethnic origin in administration of our educational policies, admissions policies, scholarships and loan programs, and athletic and other school‐administered programs.
______Date: ______Thomas Schaefer, Chairperson Nazareth Prep Board of Trustees
23 September 25, 2018
Nazareth College and Career Prep / Holy Family Academy Board of Directors
BUDGET ANALYSIS – June 30, 2018
Enclosed for your review is a budget analysis for the period July 1, 2017 through June 30, 2018.
The highlights of the analysis are as follows:
HFICPP operating surplus for the period was $89,131 vs. budget deficit of $978 or $90,109 favorable variance - the major reasons for the favorable variance are: lower personal cost, lower agent fees, lower administrative cost and lower supplies/food cost Nazareth College and Career Prep / HFA operating deficit for the period was $537,372 vs. a budget deficit of $3,524 or $533,848 unfavorable variance – the major reasons for the unfavorable variance are: lower grants/donations, lower tax credit funding, lower CWP revenue, lower federal food revenue, higher professional fees and higher travel expense
Significant Variance Review by Corporation
HFICPP
Revenue The $248,500 unfavorable variance was caused by:
Private fees by individuals (including agent fees) are under budget because of lower census: $284,700 Unrestricted Donations are over budget because of the rent forgiveness: $30,300
Expenses The $338,600 favorable variance was caused by:
Professional Fees are under budget because of lower agent fees caused by lower census, students without agents and lower fees negotiated with agents: $125,700 Indirect expenses are under budget because of lower Administrative expenses and lower direct cost in the program: $82,500 Salaries and benefits are under budget because of lower staffing due to lower census: $58,300 Supplies are under budget because of lower food cost due of lower census and inventory control: $36,000 Client Related Expenses are under budget because fewer students are in the “home stay” part of the program: $20,800
24 Nazareth College and Career Prep / HFA
Revenue The $645,600 unfavorable variance was caused by:
The grants from outside funders/donations, tax credits, federal food, tuition, CWP, etc. were under budget: $645,600
Expenses The $111,800 favorable variance was caused by:
Supplies are under budget because of lower food cost due of lower census and inventory control: $149,800 Indirect expenses are under budget because of lower Administrative expenses and additional programs to share indirect expenses: $138,700 Depreciation expense is under budget because capital projects were completed later in the year: $30,100 Occupancy expenses are under budget because of lower utility costs: $18,500 Professional Fees are over budget because of higher consultant fees (Edge Pilot Program, Confucius Institute, FACTS, Enrichment program, etc). It should be noted that the Edge Pilot Program was grant funded. The grant funds are included in the unrestricted donations: $115,100 Travel expense is over budget because of additional busing/transportation and vehicle maintenance costs: $76,200 Salaries and benefits are over budget because of higher staffing expenses: $54,700 Printing and publications are over budget because of higher advertising expense: $18,600
Results for All Other Corporations
The HFI consolidated operating deficit for the period was $59,982 vs. budget surplus of $6,611 or $66,593 unfavorable variance. It should be noted that the June 30, 2018 year-to-date results were an improvement of approximately $75,000 from the prior year.
HFI Central Services deficit for the period was $65,955 vs. budget deficit of $75,708 or $9,753 favorable variance – the major reason for the favorable variance is lower professional fees and salary and benefit expenses HFI Social Services and Learning operating surplus for the period was $454,212 vs. budget surplus of $86,822 or $367,390 favorable variance – the major reasons for the favorable variance are: higher revenue from JOH (which covers additional indirect costs), two new programs, higher census in the specialize learning program and lower travel cost HFF deficit for the period was $961,767 vs. budget deficit of $1,684,373 or $722,606 favorable variance - the major reason for the favorable variance was due to higher return on investments and lower indirect expense (administrative cost). It should be noted that the June 30, 2018 year-to-date results were an improvement of approximately $260,000 from the prior year.
25
If you should have any questions, or need additional information, please do not hesitate to contact me.
Respectfully submitted,
Mark J. Palastro CFO
26 27 HFA Board Report - Nazareth Prep Program June 30, 2018
Annual Month Month Y-T-D Y-T-D Y-T-D Y-T-D Budget Actual Budget Actual Budget Actual Budget 2017-2018 6/30/18 6/30/18 Variance 6/30/18 6/30/18 Variance 6/30/17 6/30/17 Variance Revenues Private Charity Unrestricted Donations 357,000 371,402 17,850 353,552 757,499 357,000 400,499 524,923 - 524,923 Restricted Donations 865,000 5,690 65,000 (59,310) 186,985 865,000 (678,015) 211,965 722,000 (510,035) Tax Credits 748,000 20,000 37,400 (17,400) 594,125 748,000 (153,875) 436,580 447,000 (10,420) Holy Family Foundation Grant 1,505,102 - 134,550 (134,550) 1,505,102 1,505,102 - 1,845,700 1,939,961 (94,261) Special Events ------United Way Allocation ------United Way Contributor Choice 30,000 - 1,500 (1,500) - 30,000 (30,000) - - - Satisfaction of Restrictions 75,000 4,653 6,250 (1,597) 96,242 75,000 21,242 556,205 479,637 76,568 Sub Total From Private Charity 3,580,102 401,745 262,550 139,195 3,139,953 3,580,102 (440,149) 3,575,373 3,588,598 (13,225) Government Fees All county per diems ------Allegheny County In Home ------Armstrong County In Home ------Goverment Grants ------Federal Food Program 101,898 - 5,095 (5,095) 29,104 101,898 (72,794) 20,270 98,500 (78,230) Sub Total From Government Fees 101,898 - 5,095 (5,095) 29,104 101,898 (72,794) 20,270 98,500 (78,230) Other Sources School District Fees 153,000 8,795 7,650 1,145 123,716 153,000 (29,284) 113,830 154,000 (40,170) Third Party Fees ------Private Fees By Individuals 475,000 15,000 40,500 (25,500) 346,000 475,000 (129,000) 405,820 458,900 (53,080) Fees From Holy Family Corporations ------Income From Investments ------Unrealized gain (loss) on Investments ------Rental Income ------Miscellaneous Income 25,000 13,322 3,000 10,322 50,585 25,000 25,585 42,219 - 42,219 Total Revenues 4,335,000 438,862 318,795 120,067 3,689,358 4,335,000 (645,642) 4,157,512 4,299,998 (142,486) Expenses Salaries w/o Overtime 1,785,714 199,143 119,520 (79,623) 1,858,521 1,785,714 (72,807) 1,707,325 1,693,904 (13,421) Overtime 12,000 976 452 (524) 15,994 12,000 (3,994) 10,968 12,000 1,032 Taxes and Benefits 511,460 51,064 33,255 (17,809) 489,322 511,460 22,138 467,171 466,931 (240) Conferences 29,600 2,608 3,612 1,004 23,247 29,600 6,353 28,015 29,000 985 Employee Related/Recruitment 4,850 - 404 404 6,414 4,850 (1,564) 6,441 21,050 14,609 Professional Fees 55,847 6,771 4,946 (1,825) 170,966 55,847 (115,119) 158,361 256,211 97,850 Supplies 280,600 4,666 11,280 6,614 130,810 280,600 149,790 212,396 273,580 61,184 Voice and Data Communications 23,465 (516) 1,955 2,471 8,843 23,465 14,622 18,770 23,465 4,695 Postage 5,000 25 417 392 1,366 5,000 3,634 4,862 3,000 (1,862) Occupancy 271,553 13,068 21,663 8,595 253,013 271,553 18,540 272,958 272,263 (695) Equipment 50,500 1,875 7,217 5,342 40,237 50,500 10,263 50,021 22,500 (27,521) Printing and Publications 47,500 3,018 682 (2,336) 66,094 47,500 (18,594) 64,346 45,500 (18,846) Travel 127,500 7,430 8,038 608 203,680 127,500 (76,180) 144,961 85,600 (59,361) Client Related Expenses 180,700 11,758 9,034 (2,724) 181,652 180,700 (952) 89,558 142,850 53,292 Dues 8,500 138 425 287 5,756 8,500 2,744 9,705 7,000 (2,705) Interest Expense and Bank Fees 800 73 40 (33) 794 800 6 734 500 (234) Expenses Related to Fund Raising ------Granted To Related Party ------Bad Debt Expense 17,000 2,775 17,000 14,225 1,698 17,000 15,302 7,354 17,000 9,646 Loss(Gain) Disposal of Assets - - - - 146 - (146) (2,575) - 2,575 Miscelleneous Expense - 700 - (700) 2,102 - (2,102) 2,874 - (2,874) HFI Maintenance 49,243 3,016 4,104 1,088 58,248 49,243 (9,005) 59,160 - (59,160) HFI Training & Unified Services ------HFI Property ------Total Direct Expenses 3,461,832 308,588 244,044 (64,544) 3,518,903 3,461,832 (57,071) 3,313,405 3,372,354 58,949 Total Indirect Expenses 550,231 7,611 45,852 38,241 411,513 550,231 138,718 592,744 665,735 72,991 Total Expense 4,012,063 316,199 289,896 (26,303) 3,930,416 4,012,063 81,647 3,906,149 4,038,089 131,940 Excess Revenue Over (Under) Expenditures Prior 322,937 122,663 28,899 (93,764) (241,058) 322,937 (563,995) 251,363 261,909 (10,546) to Depreciation Depreciation 326,461 24,922 27,205 2,283 296,314 326,461 30,147 271,811 280,450 8,639 Excess Revenue Over (Under) Expenditures (3,524) 97,741 1,694 (96,047) (537,372) (3,524) (533,848) (20,448) (18,541) (1,907) 28 HFI Consolidated Operations Actual June 2018
HFA HFA HFF HFI HFI HFI HFI Total College Total Holy Additional Consolidated Consolidated HFI Central Social Services Learning Preparatory NCCP Family Temporarily Eliminations Grand Operations Services Operations Operations Program Program Eliminations Foundation Restricted Based on HFF Total Revenues Private Charity Unrestricted / InKind Donations 1,206,343 225,579 182,041 10,899 30,325 757,499 0 1,455,501 0 (1,044,730) 1,617,114 Restricted Donations 186,985 0 0 0 0 186,985 0 0 542,322 (358,223) 371,084 Tax Credits 594,125 0 0 0 0 594,125 0 594,125 0 (594,125) 594,125 Holy Family Foundation Grant 1,505,102 0 0 0 0 1,505,102 0 0 0 (1,505,102) 0 Special Events 0 0 0 0 0 0 0 249,205 0 0 249,205 United Way Allocation 0 0 0 0 0 0 0 0 0 0 0 United Way Contributor Choice 56,486 56,486 0 0 0 0 0 30,585 0 0 87,071 Satisfaction of Restrictions 249,205 17,300 135,663 0 0 96,242 0 0 (249,205) 0 0 Sub Total From Private Charity 3,798,246 299,365 317,704 10,899 30,325 3,139,953 0 2,329,416 293,117 (3,502,180) 2,918,599 Government Fees All county residential per diems 491,264 0 491,264 0 0 0 0 0 0 0 491,264 Allegheny County In Home 1,198,389 0 1,198,389 0 0 0 0 0 0 0 1,198,389 Armstrong County In Home 544,337 0 544,337 0 0 0 0 0 0 0 544,337 Goverment Grants 5,647,937 88,020 5,559,917 0 0 0 0 0 0 0 5,647,937 Federal Food Program 72,794 0 31,963 11,727 0 29,104 0 0 0 0 72,794 Sub Total From Government Fees 7,954,721 88,020 7,825,870 11,727 0 29,104 0 0 0 0 7,954,721 Other Sources School District Fees 1,983,541 0 0 1,859,825 0 123,716 0 0 0 0 1,983,541 Third Party Fees 3,573,977 0 3,573,977 0 0 0 0 0 0 0 3,573,977 Private Fees By Individuals 1,942,612 0 9,791 0 1,586,821 346,000 0 0 0 0 1,942,612 Fees From Holy Family Corporations 33,151 2,273,827 0 0 0 0 (2,240,676) 0 0 (33,151) 0 Income From Investments 0 0 0 0 0 0 0 218,875 0 0 218,875 Unrealized gain (loss) on Investments 0 0 0 0 0 0 0 375,637 0 0 375,637 Rental Income 33,392 33,392 0 0 0 0 0 0 0 0 33,392 Miscellaneous Income 111,837 16,740 24,337 11,961 8,214 50,585 0 26,063 0 0 137,900 Total Revenues 19,431,477 2,711,344 11,751,679 1,894,412 1,625,360 3,689,358 (2,240,676) 2,949,991 293,117 (3,535,331) 19,139,254 Expenses Salaries w/o Overtime 10,853,949 1,112,779 6,306,128 939,427 637,094 1,858,521 0 172,146 0 0 11,026,095 Overtime 300,100 11,529 231,614 16,302 24,661 15,994 0 0 0 0 300,100 Taxes and Benefits 2,904,582 288,897 1,702,924 255,411 168,028 489,322 0 42,027 0 0 2,946,609 Conferences 76,845 14,623 34,322 2,603 2,050 23,247 0 2,647 0 0 79,492 Employee Related/Recruitment 47,029 20,699 15,830 2,257 1,829 6,414 0 374 0 0 47,403 Professional Fees 1,096,145 426,861 217,477 55,125 225,716 170,966 0 60,460 0 0 1,156,605 Supplies 543,597 24,029 215,963 86,416 86,379 130,810 0 2,018 0 0 545,615 Voice and Data Communications 228,611 90,259 120,863 4,287 4,359 8,843 0 476 0 0 229,087 Postage 38,647 5,754 30,419 778 330 1,366 0 3,169 0 0 41,816 Occupancy 1,356,078 345,450 524,712 137,522 95,381 253,013 0 4,435 0 0 1,360,513 Equipment 286,188 118,247 95,384 21,761 10,559 40,237 0 5,312 0 0 291,500 Printing and Publications 102,822 17,238 12,980 4,510 2,000 66,094 0 16,345 0 0 119,167 Travel 453,898 9,915 220,773 2,787 16,743 203,680 0 1,996 0 0 455,894 Client Related Expenses 441,451 10,380 142,240 34,882 72,297 181,652 0 0 0 0 441,451 Dues 36,002 28,776 875 125 470 5,756 0 6,231 0 0 42,233 Interest Expense and Bank Fees 18,390 2,076 2,612 12,907 1 794 0 1,248 0 0 19,638 Expenses Related to Fund Raising 0 0 0 0 0 0 0 57,152 0 0 57,152 Granted To Related Party 0 0 0 0 0 0 0 3,502,181 0 (3,502,181) 0 Bad Debt Expense 8,213 8,600 (2,085) 0 0 1,698 0 0 0 0 8,213 Loss(Gain) Disposal of Assets 557 0 411 0 0 146 0 0 0 0 557 Miscelleneous Expense 7,860 4,465 90 23 1,180 2,102 0 393 0 0 8,253 HFI Maintenance 0 (1) 42,052 0 20,855 58,248 (121,154) 422 0 (422) 0 HFI Training & Unified Services 0 0 0 0 0 0 0 0 0 0 0 HFI Property 0 0 0 0 0 0 0 0 0 0 0 Total Direct Expenses 18,800,964 2,540,576 9,915,584 1,577,123 1,369,932 3,518,903 (121,154) 3,879,032 0 (3,502,603) 19,177,393 Local General & Administrative 0 0 0 0 0 0 0 0 0 0 0 HFI Central Services - Fundraising 0 0 208,104 753 0 68,063 (276,920) 0 0 0 0 HFI Central Services - Administration 0 0 295,594 47,910 42,340 114,491 (500,335) 11,309 0 (11,309) 0 HFI Central Services - IT 0 0 174,013 28,205 24,926 67,400 (294,544) 6,657 0 (6,657) 0 HFI Central Services - Adjustment 0 0 146,053 (31,229) (29,907) (76,194) (8,723) (8,723) 0 8,723 0 HFI Central Services - Human Resource 0 0 295,399 47,879 42,313 114,417 (500,008) 11,302 0 (11,302) 0 HFI Central Services - Finance 0 0 318,432 51,611 45,613 123,336 (538,992) 12,183 0 (12,183) 0 Total Indirect Expenses 0 0 1,437,595 145,129 125,285 411,513 (2,119,522) 32,728 0 (32,728) 0 Total Expense 18,800,964 2,540,576 11,353,179 1,722,252 1,495,217 3,930,416 (2,240,676) 3,911,760 0 (3,535,331) 19,177,393
Excess Revenue Over (Under) Expenditures 630,513 170,768 398,500 172,160 130,143 (241,058) 0 (961,769) 293,117 0 (38,139) Prior to Depreciation Depreciation 690,494 236,722 97,046 19,402 41,010 296,314 0 0 0 0 690,494 Excess Revenue Over (Under) Expenditures (59,981) (65,954) 301,454 152,758 89,133 (537,372) 0 (961,769) 293,117 0 (728,633) Run: 9/26/2018 29 30 31 32