Board of Directors Meeting

November 16, 2016 Call to Order Kathryn Lake, Board Chair

• Approval of September 2016 Minutes • A Recent Board Member-Sponsored Project

Featured Committee Reports

Finance Committee Peggy Allison, Treasurer

• Approval of August/September Financial Statements • Approval of 2015/6 Audit and 990 Filing

Development Committee

Beth Gold, Chair; Rachel Goldberger, Luncheon Chair; Judy Schecter, Senior Director

• One Childhood, One Chance Luncheon Updates Strategic Initiatives Committee Carolyn Westberry, Chair

• Review of 2014-16 Strategic Plan Accomplishments Q &A/Discussion

Executive Session (1:10 pm) Governance Committee Jennifer Mosle, Chair; Brett Kirstein, Board Chair-Elect

• Election of New Board Member • Other Matters

Adjournment (1:30 pm)

Board of Directors Meeting November 16, 2016

August/Sept Financial Results For Approval ($000s)

“UNRESTRICTED” Aug/Sept Actual

Budget Variance

YTD Actual

Budget Variance

Revenue $890 ($311) $1,265 ($207)

People Expenses 355 (7) 711 (7)

Operating Exp. 142 (76) 256 (105)

Total Expenses $497 ($83) $967 ($112)

Surplus $394 ($228) $298 ($96)

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RESTRICTED (Bridge Fund)

Aug/Sept Actual

Budget Variance

YTD Actual

Budget Variance

Subsidies/Admin $117 $32 $204 $54

Ending Financial Assets

$5.29 MM

w/Unpaid Pledges

$6.53 MM

Key Community Developments Child Care Subsidy System (CCMS) ◦ Year-long family eligibility in place, but freeze on funding new applicants

has increased North Texas waitlists to 12,000 ◦ In October, EFS suspended funding new Bridge Fund applicants to protect

assistance to current 92 families/150 children in worst case scenarios ◦ Our 2017 legislative focus is for more state-provided CCMS funding

ISD Partnerships & Expansion ◦ Mesquite ISD partnered with 2 EFS centers for 3-year-olds; DeSoto ISD

has asked EFS to mentor its pre-k program to accredited quality ◦ Dallas ISD working toward RFP for independent center partners, though

economics unclear; will expand in Madison, South Dallas and Galleria

Early Matters Dallas kicked off public efforts, focused on greater business support for the DISD community plan

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EFS has been named Partner of the Year by the Texas Workforce Commission (Dallas) for its work with ChildCare Group and the Bridge Fund

Important Internal Transitions

Reorganized to align Four Steps 2.0 and Enrollment Services into a Pre-Accredited/Accredited program structure under Senior Director Samantha Moya

Technology migrated to cloud-based data/email, with greater bandwidth and a VOIP telephone system, at significantly lower capital expenditures than budgeted

These changes will increase expenses/headcount later in the fiscal year, but should be more than offset by other positive expense/capex variances

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Early Learning & Economic Programs

S. Moya

Pre-Accredited Centers

Quality

Accredited Centers Enroll/Qual

Professional Development

Partner/Paid

Home-Based Care

Associations

Partnerships & Initiatives

Comm/Direct

Can EFS lessen impact of

teacher turnover?

31 staff

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1 2 9 16

The Changing Geography of Our Programs

0500

1000150020002500300035004000

Children in Quality

In Child Care Centers

Dallas Tarrant Other

24%

55%

72%

65%

Other

Tarrant

Dallas

All

% in Quality

5 Including the Home-Based Program, EFS now helps 5,492 children;

68% in Dallas County; 26% in Tarrant and 6% elsewhere in North Texas

69%

25%

6%

77%

21%

2%

The Combined Power of Four Steps 2.0 & Enrollment Services

Quality Phase

Centers 10/15

Centers 10/16

Classrooms 10/15

Classrooms 10/16

Children 10/15

Children 10/16

Discovery 13 10 70 45 631 556

Pre-Quality 26 25 117 119 1,337 1,218

Quality 54 56 262 290 2,492 3,285

Total 93 91 449 454 4,460 5,059

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EFS continues to reach its goals because the two programs now complement each other to reward quality achievement

• 35% of “children in quality” increase is from centers reaching final stages of 4SE2; majority is from enrollment advances at quality centers • Enrollment at pre-quality centers fell 11% (from 11.4 per classroom to 10.2), but rose at quality centers by 19% (9.5 to 11.3)

The 2016 Dallas One Childhood, One Chance Luncheon

$000s

Sponsored Tables (Used)

Pre-Event Cash

Event Day Cash

Gross Cash

Proceeds

Cash

Expenses

Net Cash

Proceeds 2013 37 $300 $40 $340 $87 $253

2014 51 $430 $43 $473 $113 $360

2015 Gala 78 $515 $135 $650 $151 $499

2016 Est. 61 $440 $50 $490 $106 $384

$420K (95%) of pre-event cash estimate achieved with three weeks to go

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Expanded Corporate Sponsorship/Support

A key part of this year’s luncheon strategy

$141K of corporate sponsorships, support or matching funds represents 29% of estimated gross proceeds

$79K of in-kind products for guest gifts bags distributed at the event

ISN Presenting Sponsor Neiman Marcus – Youth Arts and Education

Sponsor Bank of Texas – VIP Reception Sponsor Texas Capital Bank – Invitation Sponsor

Brierley+Partners Cle de Peau Beaute

Dior Perfumes & Cosmetics Estee Lauder ExxonMobil Frost Bank

Givenchy Beauty Hampton Sun

Kiehl’s Richard Blanch/Le Metier de Beaute

La Prairie Majestic Filatures Molton Brown USA

Oribe Hair Care Rosewood Corp.

Seven-11 Sisley

Stratford Consulting Tata Harper

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In-kind gifts will offset as both unbudgeted revenue and expenses for budgetary and financial reporting

Successfully Executed an Aggressive 2014-6 Strategic Plan

Objective Met?

Comments

Build accredited quality through accelerated Four Steps 2.0

YES

83% growth from 1,798 to 3,285 children in quality; 30% of classrooms non-Dallas

Deploy Enrollment Services to quality centers

YES

32 centers w/initial 55% enrollment now about 75%; $1.3 MM Child Care Bridge Fund established

Pilot Quality Program for Home-Based Providers

YES

Four associations serving 100 providers and 433 children aged 0 to 5receiving regular PD

Establish meaningful partnerships, especially w/ISDs

YES

Key player in all Dallas & Ft. Worth EC initiatives, including DISD/FWISD Partnership Advisory groups

Higher Brand Awareness/Trainer of Choice for Quality

YES

New logo, higher community awareness; Paid CDA provider for Early Head Start, CCG & others

Represented in Community EC Marketing Campaigns

N/A

No campaigns energized by community

Enhance evaluation metrics to drive decisions, especially for new services

YES

Rigorous program tracking at provider, program & teacher levels

Implement enhanced IT Strategy YES

New IT partner, migrated to higher bandwidth, cloud-based infrastructure

Execute Capital Campaign to Raise $5MM YES $5.85 MM raised, excluding Major Donor/Tarrant

Increase donor base, incl. Major Individual Giving and Tarrant County

YES

Tripled donor base, doubled Tarrant fund-raising; Major Giving opportunities remain 9

High Demand

Enrollment

Services

High Quality Four Steps

2.0

Favored Economics

Training, Partnerships

& Policy

A New Result

Create and Sustain a Strong

Supply of Accredited Providers

Make Quality The Product of Choice

for Parents

Reward Quality Providers With An Advantaged

Financial Model & Mgmt Skill Set

A Network of Stable, Fully-Utilized Quality Providers, Even Able to Grow & Re-Invest

in Themselves

The Strategic Plan Led to a Strategy That

Aims Toward Structural Changes Uniting Quality with Positive Economics

I spoke to you briefly about the CCMS freeze on August 1 of this year, and the need, after three subsequent months of continuing to accept and fund Bridge Fund applicants, to suspend temporarily that aspect of the program. We believe this decision is prudent to protect the ability of the 92 families and 152 children currently on the program to continue to be funded through a waitlist period that could even extend through the end of the current “funding year” of the Bridge Fund program on July 1, 2017. That seems like a long a period for CCMS to be frozen (and we hope that’s true), but I have been told by TWC sources and local CCG and CCA agencies that it’s not out of the question.

Probably the best way of explaining the decision is through the chart below, which uses the “funding year” for the Bridge Fund beginning in July. Due to shorter waitlist times last year, EFS began the current funding year with $146,000 remaining from last funding year’s grant installment. This year, we received $250,000 in July 2016 and agreed to delay an equal amount to until December. Together, this comprises the $646,000 of available funding noted below.

We have taken the families and children currently on the program, and based upon their actual Bridge Fund payments, projected these “as is” until July 2017 (monthly variations relate to the number of payable days of childcare attendance). IF NO DROPOFF OR ACTUAL CCMS OUTREACH OCCURS (“Maximum”), EFS would spend $90,000 MORE than is available in subsidies (and well over $100,000 with administrative costs) by the time the next $300,000 is funded next summer for the (hopefully not) “final” year of the Fund.

Will we actually run out of money by July 1, 2017? Probably not, and certainly not to the tune of $100,000 or more. We all know that families leave the program by their own choice or because they become ineligible for CCMS funding while on the waitlist. So, in the next eight months, the maximum $736,000 “run rate” will undoubtedly fall and the gap will close. It’s still possible that if the CCMS system remains frozen there will be a small shortfall as we approach July; we can talk about how that might be handled if it arises. But the possibility of even a small shortfall means to us it’s time to stop accepting/funding new applicants and make sure we preserve the integrity of the program for the many women and families benefitting from it today.

The most effective way for the potential shortfall to dissipate and for the Fund to begin taking new applicants again would be for CCMS itself to start meaningfully working the waitlist, and that may very well happen before the summer. We (and maybe they themselves) just don’t know. Our decision to suspend taking new applications themselves (not just suspending funding any) reflects the rapidity with which applications become “stale”, as well as that we don’t feel it would be a positive for such a successful program as the Bridge Fund to accumulate the same kind of waitlist that is such a negative about CCMS, especially as ours would be almost entirely a result of CCMS’ own actions. We’d very much like to preserve the very positive results and feelings about the assistance the Bridge Fund provides within a community that clearly appreciates its value today.

Bridge Fund Projections No. of days Children

served Payments Cost per day Ave mo cost/child

July 2016 29,928 Aug 2016 54,630 Sept 2016 22 127 51,058 $ 2,320.82 Oct 2016 21 152 57,746 $ 2,749.81 Nov 2016 22 152 61,255 $ 2,784.32 $ 402.99 Dec 2016 22 152 $ 61,255 $ 2,784.32 $ 402.99 Jan 2017 22 152 $ 61,255 $ 2,784.32 $ 402.99 Feb 2017 20 152 $ 55,686 $ 2,784.32 $ 366.36 Mar 2017 23 152 $ 64,039 $ 2,784.32 $ 421.31 April 2017 20 152 $ 55,686 $ 2,784.32 $ 366.36 May 2017 23 152 $ 64,039 $ 2,784.32 $ 421.31 June 2017 22 152 $ 61,255 $ 2,784.32 $ 402.99 July 2017 21 152 $ 58,470 $ 2,784.32 $ 384.68

Maximum

Payments

-736,304

$ 396.89 Available 646,300 Maximum

Shortfall

-90,004

No cash shortfall is possible before the next $250,000 funding tranche in December. We should still have at least $141,000 in unused funding at that point. I hope this gives you enough to understand where we are as well as continue to understand how much the Bridge Fund means for single women and their families and the women-owned and operated childcare centers that are its distribution system. Please let me know when/if you’d like to discuss further. Thanks again for a unique partnership, at a time when it’s particularly needed.

John

FINANCIAL ADDENDUM 11/8/16

FAMILY FALLOUT SINCE SUSPENSION ($ per month) $3,318 X Months Until July 1, 2017 x8 REDUCTION IN POTENTIAL SUBSIDY SHORTFALL $26,544 Prior Potential Shortfall $90,004 Reduction in Potential Subsidy Shortfall 26,544 Revised Potential Subsidy Shortfall $63,460 (71% of Prior Estimate)

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EDUCATIONAL FIRST STEPS (EFS) ACRONYMS, TERMS AND PEOPLE GET ON THE SAME PAGE

As of November 9, 2016 AELL: Association for Early Learning Leaders Formerly the National Association of Child Care Professionals BCG: Boston Consulting Group, consulting firm associated with Early Matters Bridge Fund: Dallas Women’s Foundation grant of $1.2 million over 3 years where EFS pays qualifying families CCMS level reimbursement while on CCMS waiting list and attending EFS centers CCA: Child Care Assistance, also referred to as CCMS CCDBG: Child Care Development Block Grant Federal program reauthorized in 2014 giving States money for child care subsidy programs. CCDF: Child Care Development Fund Federal funding for childcare programs. It includes CCDBG funding. CCG: Child Care Group, Tori Mannes President and CEO Organization that is the contractor to the local Texas Workforce Board and administers CCA funds for Dallas County. It also operates several childcare centers.

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CCMS: Child Care Management Services The Federal child care subsidy program in Texas. CDA: Child Development Associate certificate Credential issued by the Council for Professional Recognition in Washington D. C. EFS provides the CDA certification through a 3rd party Cohen, Alan Former DISD, former Commit! Replaced by Derek Little Commit! Compiles educational related data for Dallas County. DAEYC: Dallas Association for the Education of Young Children DAPE: Dallas Association for Parent Education DEEA: Dallas Early Education Alliance Melanie Rubin, Director DFPS: Texas Department of Family Protective Services Responsible for regulating child care. DISD: Dallas Independent School District Early Matters Dallas: Organization that focuses on early childhood education including reading by 3rd grade Early Matters Houston: Established before Early Matters Dallas

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ECI: Early Childhood Intervention Statewide program for children, birth to three who have disabilities and developmental delays. EFS: Educational First Steps EHS: Early Head Start Enrollment Services: EFS programs to increase enrollment at centers including business management training, website assistance, facility improvements. FCE: Foundation for Community Empowerment Federal Child Care Development Subsidy Block Grant (2014) First 3 Years: Organization that promotes infant mental health through age 3. Formerly the Texas Association for Infant Mental Health Foundations: Dallas: Dallas Womens’ Foundation Rees-Jones Tarrant: Rainwater Richardson GXA: EFS Information Technology outsourcer HS: Head Start

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Home-based Quality: House Bill-4: Requires degreed teachers or the equivalent in “quality” childcare environments. Lazos y Abrazos: Name given to home-based early childhood education in West Dallas which is primarily a Hispanic area of Dallas Little, Derek: Responsible for DISD Head of Early Childhood Education Mannes, Tori President, CEO Child Care Group Meyers, Jaimie Director Early Matters, Dallas which is associated with COMMIT! Morath, Mike DISD Trustee appointed to Texas Education Commissioner NAC: National Accreditation Commission For Early Child Care Education Organization that accredits child care centers. NACCP: National Association of Child Care Professionals NAEYC: National Association for the Education of Young Children Organization accredits child care centers.

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One Childhood/One Chance Luncheon: Speaker: Lisa Fenn Location: Omni Date and Time: December 9 at Noon Rubin, Melanie Executive Director, Dallas Early Education Alliance TAEYC: Texas Association for the Education of Young Children TAIMH: Texas Association for Infant Mental Health TANF: Temporary Assistance to Needy Families Federal program that provides assistance to poor families. Formerly AFDC, Aid to Families with Dependent Children TEA: Texas Education Agency TLCCA: Texas Licensed Child Care Association TRS4: Texas Rising Star-4, adds Licensing/physical site emphasis to EFS centers TWC: Texas Workforce Commission (manages CCMS subsidy program) WIC: Women, Infants, Children Federal program providing nutrition and food assistance to pregnant and Post-partum women and their children under age 5.

Educational First Steps Governance Committee of the Board

Friday, November 4, 2016, 8am

Meeting Notes Members Present

• Barnett, Alice • Breitfeller, John (by phone) • Lake, Kathryn • Mosle, Jennifer • Scaife, Georgia (by phone) • Skochdopole, Nancy (by phone) • Taber, Jane

Members Absent

• Brito, Marsha • Cowan, Molly • Garton, Barb • Lockhart, Michelle

Note: Because we were not discussing Tarrant County issues, Amy Jacobs did not attend. Committee Charge

• We reviewed changes to the Governance Committee charge. See the attached redline. We discussed the reference to diversity. Committee members will review the draft of the charge and send any additional comments to Jennifer by November 11.

• Other board committees will be asked to review and revise their committee's charter. • The benefits include (a) clarifying goals for each committee, and (b) educating board

members on what committee(s) they might like to join. Committee Calendar

• We scheduled the following Governance Committee meetings, each at 8am: January 12, February 9, March 9, April 6, and May 4.

• We discussed the following goals: (a) April 10 - Present slate of officers and new board members by email for the board's consideration. (b) May 10 - Vote on slate of officers and new board members for 2017-18. Announce committee chairs.

• Slate of Officers: In the past, it has been difficult to find people willing to serve as officers. Scarcity of time seems to be the biggest hurdle. For example, we discussed ways to make the Secretary job more appealing to volunteers.

Board Education and Engagement • Education: We reviewed the "Time Talent Treasure" graphic that Nancy provided (see

attached). We will use this visual to encourage each board member to actively contribute at least 2 out of the 3 at all times during their EFS board service.

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• Feedback from Board Training: We reviewed comments from the brainstorming portion of the September 8th board training.

• Current Events: We will experiment with a short e-blast to the board with articles of interest. If we share with board members how news about early education relates to EFS, then board members may feel more engaged. They might also be willing to forward the email to friends (acting as an EFS ambassador). The emails must be short and should come only when board members will not otherwise be receiving board packets (i.e., in between board meeting). Jennifer will collect links and articles sent to her. Periodically, she will work with John to send them to the board. Alice commented that the Education Policy committee could contribute information of interest.

• Social Events: A board member commented that she believes there is benefit of purely social gatherings outside of meetings. We had a cocktail hour on September 8. In the spring, we will plan a social gathering (possibly with spouses) to honor board members whose terms are expiring. However, we know people are busy and don't want to over-schedule. Need to strike the right balance.

• Tours: We discussed the benefit of encouraging board members to organize tours with friends or colleagues. Then, they could share highlights at a board meeting. We did not reach any conclusions. Jennifer asked John to let her know when he is aware of board members on tours or volunteer projects. Jennifer can then reach out to that board member to ask if they would be willing to share their experience with the board.

• Board Meetings: How can we make them effective, efficient, and engaging? o We discussed the time of day and length of meetings. o If we can keep meetings to a reasonable length, then noon is not necessarily a bad

time of day. o We discussed strategies to shorten meetings. We discussed what items might be

appropriately included in a consent agenda. However, we decided that, at this point, there were not enough items for a consent agenda to significantly shorten the meetings.

o John indicated that he felt responsible for mentioning each committee's work in his report. We discussed, however, that it is unnecessary for each committee to report at each board meeting. It should be the committee chair's responsibility (rather than John's) to report only if they have something that needs board consideration.

o We discussed attendance at board meetings. John will provide Jennifer a list of board members who have not attended meetings recently. We will reach out to them to let them know we missed them and bring them up to date. If we want each board member to be engaged, we need to help overcome barriers to their participation.

Composition and Nominations

• Board Terms: We identified several inaccuracies in board roster indicating who is "Eligible for Re-Election." John will work to provide an accurate list of terms. We will need an accurate list to create our slate of board members.

• Audrey Decherd: Kathryn presented Audrey's resume (see attached), which was discussed. A motion was made and seconded to recommend that the Board elect Audrey as a board member.

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Coordination with Development Committee

• Jennifer has a conference call on November 7 with Beth Gold and Judy Schechter discuss a joint meeting with Development and Governance. Details to follow.

• At our September 23rd Governance Committee meeting, we discussed the intersection of our committees' work including topics such as: Advisory Councils in Dallas and Ft. Worth; Relationship with Team EFS; and Young Friends Event.

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(Draft of Committee Charge as of November2016) Governance Committee

• Ensure appropriate composition of the Board o Assess strategic needs of board composition as a whole, to support

(a) EFS mission, fund-raising, operational, and public awareness/ and advocacy needs; and (b) diversity reflecting the children and center staff EFS serves.

o Identify and cultivate potential board candidates and nominate qualified individuals to be elected as Board members.

• Design and oversee an ongoing program for Board education related to (a)

EFS’ mission and needs, and (b) responsibilities as individual Board members.

• To ensure an effective board: o Initiate periodic assessment of the Board’s (and members’) performance o Identify ways to engage Board members in the work of the Board o Review the Board’s policy guidelines and practices (including the EFS bylaws)

and recommend revisions for approval o Recruit and prepare for future Board leadership.

• Evaluate the role of EFS’ Advisory Councils and recommend ways to leverage/ or

modify theseCouncils for broadereffective impact.

• Governance Committee Members: 1. Barnett, Alice 2. Brito, Marsha 3. Cowan, Molly 4. Garton, Barb 5. Jacobs, Amy (for Tarrant County issues) 6. Lockhart, Michelle 7. Mosle, Jennifer (Chair) 7.8.Scaife, Georgia 8.9.Skochdopole, Nancy 9.10. Taber, Jane 10.11. Ex Officio Members: Kathryn Lake, John Breitfeller

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An Engaged Board Member

Tim

e

Tal

ent

Tre

asur

e

(over)

AUDREY M. DECHERD, MSN, RN

1900 McKinney Avenue, #2205 (214) 957-7776 Dallas, Texas 75201 audrey0112@gmail.com

EDUCATION AND HONORS

THE UNIVERSITY OF TEXAS AT AUSTIN SCHOOL OF NURSING (Austin, TX) 2010-2012 • Master of Science in Nursing with concentrations in Adult Health and Teaching • Passed NCLEX and obtained Registered Nurse License in October 2011

VANDERBILT UNIVERSITY COLLEGE OF ARTS & SCIENCE (Nashville, TN) 2005-2009

• Bachelor of Arts in Spanish Linguistics and Minor in Sociology • Dean’s List Honors • Study Abroad Semester in Palma de Mallorca, Spain

THE HOCKADAY SCHOOL (Dallas, TX) 1997-2005

• A recipient of the Sudie Duncan Citizenship Award • Headmistress List and Commended List Honor Rolls

PROFESSIONAL EXPERIENCES

BAYLOR UNIVERSITY MEDICAL CENTER (Dallas, TX) – Critical Care RN July 2015-Present • Staff nurse on the Neurosciences Intensive Care and Acute Stroke Units at BUMC, a Certified

Comprehensive Stroke Center • Member of the unit’s HAPU/Skin Audit Team • Preceptor to many nursing students during their clinical rotations

BAYLOR UNIVERSITY MEDICAL CENTER (Dallas, TX) – Medical/Surgical RN January 2013-July 2015 • Staff nurse on the Neurosciences Telemetry Unit at BUMC, a Certified Comprehensive Stroke Center • Served as Co-Chair of the Unit-Based Shared Governance Council • Clinical Coach – certified to train new Graduate Nurses hired to our unit • Preceptor to many nursing students during their clinical rotations, including a nursing student in her

final semester during the entirety of her Capstone clinical • Certified to read and interpret five- and six-lead telemetry strips of patients on continuous monitoring

CAMP LONGHORN INKS LAKE (Burnet, TX) – Camp RN July 2012

LEADERSHIP EXPERIENCES

ASSOCIATION OF NURSES IN GRADUATE SCHOOL (Austin, TX) – Historian 2011-2012 • Photograph ANGS events and maintain the organization’s webpage • Developed the first ANGS monthly newsletter • UT School of Nursing’s Disaster Preparedness Committee (student representative)

ALTERNATE ENTRY-MSN MENTOR PROGRAM (Austin, TX) – Co-Chair 2011-2012 • Matched incoming AE-MSN first-year students with second-year student mentors • Planned networking and educational events for new AE-MSN students

SKILLS & CERTIFICATIONS

• Conversational in Spanish • Proficient in Eclipsys/AllScripts electronic medical record systems • Certified in ACLS (Exp. 2/2018) • NIH Stroke Scale Certified by the American Heart Association

ORGANIZATION MEMBERSHIPS

• Sigma Theta Tau International (STTI) Nursing Honor Society • Association of Nurses in Graduate School – UT Austin School of Nursing • Texas Nurses Association • American Nurses Association

References available upon request.