10 things every charter needs to know about finance
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10 Things Every Charter Needs to Know About Finance . Charter Conference – Session 3.1 – Charter Finance Basics April 23, 2013. Sections of Charter Law. 59-40-50 (B) 3 – financial reporting requirements 59-40-60 (E) 1 – charter committee responsibilities - PowerPoint PPT PresentationTRANSCRIPT
10 Things Every Charter Needs to Know About Finance
Charter Conference – Session 3.1 – Charter Finance BasicsApril 23, 2013
Sections of Charter Law
• 59-40-50 (B) 3 – financial reporting requirements• 59-40-60 (E) 1 – charter committee
responsibilities• 59-40-60 (F) 6 – charter school application• 59-40-110 (C) 3 – Revocation• 59-40-140 – formula for funding
Financial ViabilitySustainable, Financially Solvent
• The Charter has:• Identified potential grant opportunities• Clean yearly audits• Strong, internal, fiscal controls• Awareness of available, state/federal funding• Forced public/private partnerships
Top 10 Things You Need to Know
# 10 – Budget and Planning
• The Funding Manual and Financial Accounting Handbook are your friends• Become very familiar• Know what funding you are entitled to • Understand Revenue and Expenditure categories
Links to Manuals• http://ed.sc.gov/agency/as/• http://
ed.sc.gov/agency/cfo/finance/Fiscal-Systems/documents/2012-2013FundingManual.pdf
#9 – Location of Information – Be Informed!
• SCDE Website – Office of Chief Financial Officer – ed.sc.gov• Fiscal Systems
•Newsletter• Payments to Districts
#8 – Projections for Enrollment
• Do NOT over estimate students in first year of operation• 5th day of school estimates• Adjust on 45th-day• Adjust on 135th-day• Documentation of students• Understanding Grade spans – EFA
Categories
EFA Categories
Kindergarten 1.30Primary (1.3) 1.24Elementary (4-8) 1.00High School (9-12)
1.25TMH 2.04Speech 1.90Homebound 2.10EH 2.04
EMH 1.74LD 1.74Hearing 2.57Visual 2.57OH 2.04Vocational 1.29Autism 2.57
What Weights to Use??
• When developing a charter budget it is best to use the following:• 90% students in grade level you are
serving• 5% Speech• 5% Learning Disabled
• If you are serving entire special education category, budget in categories of students you are serving
#7 – Revenues/Expenditures
• Financial Accounting Handbook• Revenue/Expenditure definitions
• Funding Manual• Programmatic spending guidelines
• Salaries (100)• Fringe Benefits (200)• Purchased Services (300)• Supplies/Materials (400)• Capital Outlay (500)
• Fund Knowledge – 100, 200, 300. 400, 500, 600, 700, 800, 900• 200’s, 800’s and 900’s are combined into special
revenue funds
#6 – Release of Categorical Funding
•What am I entitled to? Money based on the students you serve and the programs you offer•Where do I find it?•Who do I talk to?•Federal Categorical funding•State Categorical funding
#5– Federal Categorical Funding
• Federal funding is based on reimbursement – You must spend first, then get reimbursed.• Claims must be accurate and complete – include required documentation required by Charter Office • Procedure for record review of planning and implementation grants
#5 – Cont State Categorical Funding• Reading• High Achieving
Students• Vocational• Professional
Development• At Risk Student
Funding• Teacher Supplies
• National Board• K-8 Science Kits• Formative
Assessments• Lottery• Education
License Plates
Base Funding – Everyone ReceivesCharter
District
• Full Base Student Cost – for next year estimated to be $2,101• Additional Funding –• Brick and Mortar -
$3250 per student ($5,351 per pupil)
• Virtual - $1700 per student ($3,801 per pupil)
Other Districts
• Based on audited financial reported expenditures of sponsor district• Average across the
state is currently is $5,818
#4- Relationships•Use PIPP – Be Professional, Informed, Positive and Proactive •Maintain close relationships with district finance staff•Understand the program requirements for funding before asking for them
#3 – Audit Requirements
•Your annual audit is not an option!!•Due Dates•Who performs the audit?•Single Audit Guide
#2 – Why Charters Close• Financial Viability is a MUST!•Understand your budget – have a balanced budget•Maintain auditable financial records•Maintain Adequate Cash Flow•Demonstrate compliance with state/federal laws regarding funding
#1 – No Data = No Money
$$$
ADM
PCS
Special Ed
Lunch Counts
Questions?????
Contact Information
Mellanie JinnetteDirector, Office of Finance