Download - Charter School Fiscal Management Fiscal Year 2010/11 Presented by: Fiscal Crisis and Management Assistance Team (FCMAT) California School Information Services

Charter School Fiscal Management

Fiscal Year 2010/11

Presented by:Fiscal Crisis and Management Assistance Team (FCMAT)California School Information Services (CSIS)Schools Legal Services

Welcome and Introductions

Jim Cerreta, CPA, CFE

Fiscal Intervention Specialist, FCMAT

Bill Hornback

Attorney, Schools Legal Services

Michelle Plumbtree

Chief Management Analyst, FCMAT

Gary Quiring

Implementation Specialist, FCMAT/CSIS

Explanation of Workshop Binder

Did you Know?• Nationwide, California has the largest number of charter schools serving the

largest number of students.• There are currently more than 800 charter schools with more than 285,000

students enrolled.• Charter schools, though successful in raising student achievement, are

closing their doors due to their lack of knowledge about managing the business and fiscal requirements of their schools.

• CDE data shows nearly two-thirds (65%) of all charter schools that closed since 2004 reported positive trends in API growth and failed for reasons unrelated to successful academic performance.

• Both the authorizers with oversight responsibility and the charter schools they serve need to better understand and meet their respective responsibilities.

What Can We Do?• Make sure there is an understanding that:

• Effective financial management of charter school resources is as important to the success of a charter school as the strength of the curriculum or the dedication of its founders.

• Collaborative efforts between public schools and charter schools are in the best interest of all of our students; it is essential to understand each other’s regulatory and reporting environments.

• The need for effective site-based financial management at charters has never been greater.

• Sharing best practices to build capacity for effective financial management is a win-win situation.

What Is A Charter School?

Presented by:

Bill Hornback, Counsel, Schools Legal Service

Michelle Plumbtree, Chief Management Analyst, FCMAT

What Is A Charter School?

• A public school that operates independently of an existing school district structure and which may provide instruction in any grade or grades, kindergarten through 12.

• Usually created or organized by a group of teachers, parents, community leaders, a community-based organization, or the school district.

• Exempt from most laws and regulations governing traditional public schools in exchange for a performance-based accountability contract.

What Is A Charter School? (cont.)

• Except where otherwise specifically required, charter schools in California are generally exempt from state laws governing school districts, whether or not these laws are in the California Education Code.

What Is A Charter School? (cont.)

• Charter schools may be authorized by a district, a county board of education (CBE), or by the California State Board of Education (SBE).

• Specific goals and operating procedures for the charter school are detailed in an agreement, or "charter."

• Additional details are often set forth in a memorandum of understanding or “MOU.”

• Improve student learning • Increase learning opportunities for all students,

especially those who are academically low-achieving • Encourage the use of different and innovative

teaching methods • Create new professional opportunities for teachers

What is the Purpose of Charter Schools?

• Provide parents and students with expanded choice within the public school system

• Hold schools accountable for meeting measurable performance outcomes

• Provide competition within the public school system to spur improvement in all schools

What is the Purpose of Charter Schools? (cont.)

• Charter schools are an integral part of the California educational system.

• The establishment of charter schools should be encouraged.

• Charter schools are part of the public school system but are free from most of the state laws that apply uniquely to school districts.

What is the Legislative Intent?

What is the Legislative Intent? (cont.)

• Charter schools are under the jurisdiction of the public school system and the exclusive control of the officers of the public schools, and are entitled to full and fair funding.

• The laws governing charter schools are to be liberally construed to effectuate their intent.

What Laws Apply to a Charter School?

• Constitutions, both state and federal• The California Charter Schools Act• All federal laws (e.g., special education)• Laws generally applicable to governmental entities but

not specifically aimed at school districts (e.g., open meeting laws)

• Others listed in the materials

What is the Difference Between a Dependent and an Independent Charter School?

• Traditionally, a “Dependent” school is “your” school for all purposes.

• Traditionally, an “Independent” school may only be “your” school for limited purposes.

• There is a growing trend among school districts to mix things up.

What is a “Conversion”Charter School?

When an existing school site is converted into a charter school, whether an independent or dependent charter school, the school is likely to be considered a “conversion” charter school.

Other Important Considerations

• LEA Status• Classroom- or Non-classroom-based instruction• Countywide Charters – no appeal of a denial, but

there is appeal of a non-renewal or revocation• Statewide Charters – may no longer exist after the

case of CSBA v. SBE (Aspire)

Charter School Petitions and Renewals

Presented by:


Charter Petitions and Renewals

• Have a policy in place• Identify possible resources for assistance, as needed• Be aware of what’s going on around you• Petitioner meetings?• Taking it to another level . . . Resolving disputes,

dissatisfaction, resistance to change NOW, before it becomes a “charter” topic.

Before the Storm

Charter Petitions and Renewals (cont.)

• Schedule and hold a public hearing• Review the petition• Vote on whether or not to grant the petition• Adopt findings of fact upon which a denial is going to

be based• If granted, adopt an MOU• If granted, begin supervisorial oversight

What Are My Legal Obligations?


• The charter school presents an unsound educational program for the pupils who are to be enrolled in the charter school.

• The petitioners are demonstrably unlikely to successfully implement the program set forth in the petition.

• The petition does not contain the required number of signatures.

What are the Grounds for Petition Denial?


• The petition does not contain an affirmation of each of the required conditions.

• The petition does not contain reasonably comprehensive descriptions of all of the required elements.

What are the Grounds for Petition Denial? (cont.)


• Grant the petition• Grant the petition with conditions before

commencing operations• Conditionally grant the petition • Deny the petition after adopting fact findings

What are the Possible Vote Results?


• Immediately upon receiving a petition . . . • In the first week . . .• In the first 30 days . . . • In the first 60 days . . .• Taking it to the next level – consider results of

an appeal / grant on appeal . . . • After the fact - Going into competition?

There is a Timeline, and the Clock is Ticking


• Can the reviewing agency revise the petition?• Can the reviewing agency suggest improvements?• Is there any obligation to do either?• What happens in the “perfect” world?

Revisions to the Petition

Charter Petitions and Renewals , cont.

• Budget, budget, budget – problems indicate likely failure

• Conflicts of interest, could be illegality• Motivated by something other than students’ best

interests – likely problems ahead• High level of parental / community support – success!• Cloning / conversion of an existing, working program

also indicates likely success

What are the Indications of Success / Failure?

Required Petition Elements

• Unsound educational program• Demonstrably unlikely to successfully implement

the educational program• Insufficient signatures• Missing affirmations / assurances• Missing a reasonably comprehensive description of

a required element of the petition

What are the Grounds for Denial of a Petition?

Required Petition Elements (cont.)

The petition must include affirmations on all requiredsubjects, including:• Nonsectarian in all operations• No tuition• Not deny enrollment to special needs pupils• Meet statewide standards and assessments• Declare who is the exclusive public employer

What About Affirmations?


The petition must include affirmations on all requiredsubjects, including:• No discrimination based on protected categories• No discrimination based on residence• Require appropriate credentials or other documents• Others, as noted in materials

What About Affirmations? (cont.)


• The code requires signatures of various kinds in various situations

• The SBE counts signatures at the time of submission, not looking at anything else or any time else

• Some agencies validate each signature• Some agencies reject the petition before review if

signatures are believed to be invalid or insufficient

What About Signatures?


• There are no rules binding on school districts or county boards of education

• The only rules are only binding on the State Board of Education

• You get to decide what is reasonably comprehensive• Must be factually-based to become a reason for

petition denial

Reasonably Comprehensive Description


• If there is an issue with a required element, the factual basis behind that issue may be a basis for denial.

• The same facts may also show that the petition presents an unsound educational program.

• The same facts may also show that the petitioners are unlikely to successfully implement their program.

• The same facts may be used to show that all the above matters are true

Description Issues and Results

List of Required Petition Elements

• A description of the educational program of the school, including the transferability of courses and meeting college entrance requirements

• Measurable pupil outcomes• The method by which pupil progress is to be

measured• The governance structure of the school

List of Required Petition Elements (cont.)

• Employee qualifications• Health and safety procedures, including a criminal

record summary on employees• Plan for achieving a pupil racial and ethnic balance

reflective of the general population of the district• Admission requirements, if any


• The manner in which independent financial audits shall be conducted

• Procedures by which pupils can be suspended or expelled.

• The application of STRS, PERS or federal social security.

• Public school attendance alternatives


• District employee rights upon leaving/returning to the district

• Dispute resolution procedures• A declaration of whether or not the school is the

exclusive public school employer• A description of the school closure procedures

What About Appeals?

• There are no rules• You do not have to do anything• You can participate in the process at any point, if you

want to.• Your agency has no legal standing in the appeals

process• Possible court action if no action taken on appeal

If Your Agency Has Denied A Petition

• There is a time line for action• County boards of education are required by

regulations to either grant or deny the appeal• The State Board of Education is only required by

regulations to schedule an agenda item for granting or denying, no apparent obligation to actually vote

• There is no appeal from denial of a countywide charter petition

If Your Agency Has Received A Petition On Appeal

What About Appeals? (cont.)

• The law presumes some changes will have to be made.

• There is no rule preventing any changes beyond those necessary.

• The reviewing agency on appeal may do exactly what you could have done on initial review.

• The exact same petition that you denied may be found on appeal to be properly granted.

What About Changes During Appeal?

Charter Renewal

• Any charter may be renewed, if it meets the requirements for renewal.

• All renewals are for a period of five years.• Renewal petitions must be reviewed using the

same standards as an original petition + new laws.

• Denial of renewal may be appealed.• Denial of a countywide charter renewal may be

appealed

Charter Renewal (cont.)

• Met statutory API growth target• Ranked in deciles 4-10 on the API• Ranked in deciles 4-10 on the API for a comparable

school• The granting agency determines that the academic

performance of the school meets a set standard• Has qualified for an alternative accountability system

What are the Renewal Requirements?

Charter Renewal (cont.)

Should not be automatic and should be timed so thatno one is inconvenienced by lack of time, including timeto appeal any denial of renewal

Financial Management and Solvency

Presented by: Jim Cerreta, Fiscal Intervention Specialist, FCMAT

Charter School Finance in California

Funding Mechanism - Direct or Local Funding

Direct funded = from the stateLocally funded = through chartering authority

Either way, funding should be equitable relative to that received by traditional school districts

General Purpose Entitlement

Largest source of unrestricted charter school revenue

Funded on enrollment or Average Daily Attendance (ADA) • protection for declining enrollment? Not in California

2010-11 funding reduced by 18.355% deficit, -.39% COLAand an additional 3.85% reduction in California

General Purpose Entitlement (cont.)

Funded by a combination of: • state aid• local property taxes (“in lieu of property tax”)

In lieu of property tax:• property tax dollar amount per ADA of the sponsoring

LEA • times the charter school’s total ADA

General Purpose Entitlement (cont.)

The annual amount is the lesser of:• Property taxes per ADA • Multiplied by the charter school’s ADAOR• The charter school’s general purpose entitlement

Categorical Block Grant

• Unrestricted funds • Consolidated from individual restricted categorical

programs• Not eligible to apply separately for these programs

• See CDE website for list

Categorical Programs – State

To the extent they are eligible:

• Locally funded charter schools typically apply through their chartering agencies.

• Direct-funded charter schools apply directly to the appropriate state or federal agency.

Categorical Program Flexibility

The 2009-10 California budget provided flexibility options for restricted categorical programs

• Three tiers – I, II & III• I – no flex, no cuts• II = no flex, 19% cut (over two years ended

2009-10)• III = flex, 19% cut

• See CDE website for more information

Class Size Reduction Program

Funding for various grade levels• K-3, 9• Maintain class sizes at prescribed levels• Penalties for exceeding prescribed levels

• Penalties:• Up to 20.44 = No penalty• 20.45 to 21.44 = 5% penalty• 21.45 to 22.44 = 10% penalty• 22.45 to 22.94 = 15% penalty• 22.95 to 24.94 = 20% penalty• 24.95 or more = 30% penalty

Special Education ProgramsSpecial Education programs mandated by federal legislation

• Individuals with Disabilities Education Act (IDEA)• Seriously underfunded at the federal level

• Federal government = 10%• State government = 40%• Local government = 50%

States have responsibility for developing funding allocationplans

• SELPAs in California• Confederations of districts and counties joined together to more easily

develop the programs and services needed to provide full educational opportunities to students with disabilities

• Special education funding• Generated by the total ADA reported by districts

and combined at the SELPA level

Special Education

State laws typically require LEAs to provide charter schools with:

• An “equitable” share of funds or services or a combination of both

• Support for the educational needs of charter school students with disabilities

Lottery Funding

Lottery funds for public education•Including charter schools

•In California, lottery funds are calculated independently for each charter school•Paid on an ADA basis

•Must be used for educational purposes•Includes everything except facilities•Some of these funds are restricted

No Child Left Behind (NCLB) Act

NCLB provides restricted federal funding to LEAs for a variety of programs• Some charter schools must apply for NCLB funding on

their own behalf (direct-funded).• Some charter schools may receive funding for NCLB

programs through their sponsoring LEA (locally funded).• Significant compliance requirements

No Child Left Behind (NCLB) Act (cont.)

Federal categorically funded programs:Title I, Neglected or DelinquentTitle I, Part A, Basic GrantTitle II, Part A, Teacher & Principal Training & RecruitingTitle III, LEP StudentsTitle IV, Part A, Safe & Drug-Free Schools & CommunitiesTitle VI, Part B, Rural Education AchievementTobacco-Use Prevention Education

No Child Left Behind (NCLB) Act (cont.)

LEA Plans• Charter schools must have an approved LEA plan

• Submit a plan for review to the state• The LEA plan describes how the LEA will use NCLB

program funds• Also accountability reporting re: student performance,

fiscal compliance

American Recovery and Reinvestment Act

The Federal American Recovery and Reinvestment Act of 2009 (ARRA) was signed into law in February 2009• This legislation has provided significant one-time funds

to:• Save jobs• Stimulate the economy• Improve academic outcomes and support school

reform

American Recovery and Reinvestment Act (cont.)Programs funded by ARRA included (bold indicates those with greatest funding impact):

• Education & Human Resources Directorate, National Science Foundation• Child Nutrition Equipment Program • Child Care and Development Block Grants• Head Start and Early Head Start• Elementary and Secondary Education Act• Title I (Education for Disadvantaged Students)• School Improvement Grants• Impact Aid Construction• Enhancing Education Through Technology (EETT) • Education for Homeless Children and Youth • Statewide Data Systems• Teacher Incentive Fund• Teacher Quality Enhancement, State Grants• Individuals with Disabilities Education Act• Special Education, Part B, 611 (Ages 3 – 21)• Special Education, Part B, 619 (Ages 3 – 5) • Special Education, Part C (Birth – 2)• State Fiscal Stabilization Fund (SFSF)• Qualified Zone Academy Bond Program (QZAB)• Qualified School Construction Bonds (QSCB)

American Recovery and Reinvestment Act (cont.)

Remaining funds must be spent by September 30, 2011• Quarterly reporting requirements apply

• Must report before funds are released• New “School Improvement Grant” funds available in

California• For lowest achieving schools• Deadline to apply was June 1, 2010

Non-Classroom-Based Instruction

Non-classroom-based instruction occurs when a student is notscheduled for at least 80% of the instructional time in aclassroom. It includes, but is not limited to:

• Independent Study• Home Study• Work Study• Distance and computer-based education

• Funding penalties invoked if not meeting criteriaQuestions:• How do we structure our instructional methodologies?• Do we align with any state requirements to maximize funding?

Revenue Enhancement

Funding based on student attendance• Consider student attendance incentives• Increased attendance rates = increased funding

• Offer rewards/prizes to students for:• Best attendance rate• Most improved attendance rate

• Use donated funds to fund prizes/rewards • Avoid gift-of-public-funds issue

Revenue Enhancement (cont.)

School calendars • Evaluate daily student attendance patterns

• Identify times when attendance is low• Adjust school calendar accordingly• Eliminate days that drag down ADA


Grants• Apply….but:

• Be wary of match requirements!• Can create financial burden if not properly

understood• Key Questions

• What programs can we fund with this grant?• Can we fund this program once the grant expires?• Will this grant fund my cost increases over time

and my indirect costs?


Donations• Philanthropy/fundraising is an excellent source of

supplementary funding for charter schools• Make sure it’s a donation, not a fee• Identify how the donation will be used when collected

• Donor should always know how their donations are used

• Do not use one-time donations to fund ongoing programs• Allocate as though they are one-time funds


Indirect Costs• That portion of costs associated with the overhead of

operating a charter school• Every resource contributes to the need for indirect costs

• Thus, every resource should be charged• Each resource has specific limitations on indirect cost

charges• Refer to donor for more info

New and Expanding Charter Schools

Special advance apportionments for new charter schools• Start the flow of funds – new schools

• General purpose funds• Categorically funded programs – federal and state

• Start the flow of funds – expanding schools• Significant growth• Grade level expansion

• Offset opening costs

Declining Enrollment

School districts funded at greater of current or prior year ADA • Not available to charter schools• State won’t fund the same ADA for both the district and the

charter school• The “sending entity” must deduct the ADA from the prior

year ADA count for purposes of calculating fundable ADA

• Can’t fund same ADA twice in the same year

Facility Funding

The State requires sponsoring LEA’s to provide facility space to their charter schools• Typical caveats include:

• On space-available basis• Limitations on amounts LEA can charge for operating costs

• Finding adequate facility space can be difficult• Must be consistent with district standard for facilities for similar

programs• Lab, gym, field, library spaces are difficult to share

• Must seek alternative housing if no space is available

Facility Funding (cont.)

Variety of facility funding resources available to charter schools:• Site acquisition• Construction• Modernization/Deferred Maintenance• Lease assistance

• Must meet eligibility requirements• Must meet variety of compliance requirements• Typically requires matching funds

Visit CDE & OPSC websites for more information

Facility Funding (cont.)

How does an LEA acquire matching funds for facility projects?• Issue general obligation bonds or levy development fees

• Not available to charter schools• Issue certificates of participation

• Can be risky & expensive• What funding would be dedicated to their repayment?

• Borrowing from lenders can be difficult• Not likely to loan beyond term of charter school

authorization• Private and public sector grants may be available

• Not common

Expenditure Control Strategies for Charter Schools

Internal Controls

A strong internal control structure is critical to controlling expenditures.•This includes:

• Policies and procedures used by staff• Accounting and information systems• The work environment• The tone set by management• The professionalism of employees

Internal Controls (cont.)

• Basic Components include:• Segregation of duties• System of checks and balances• Staff cross training• Use of prenumbered documents• Asset security• Timely reconciliations• Inventory records• Budget• Position control• Data management

Budget Controls

Position Control

• System of internal control that ensures all positions funded by the charter school are properly authorized

• Check and balance between:• Staff who authorize position changes (Business

department)• Staff who manage vacancies (hire/adjust/terminate) (HR department)

Budget Controls (cont.)

Economic Uncertainty Reserve• Guidance should be provided in charter document or MOU

with authorizing agency• Consider building reserves in difficult fiscal times

• Establish a base and add for:• enrollment fluctuation• staffing/program fluctuation• equipment/facility failure

Budget Reductions

Plan for the Worst, Hope for the Best• Review priorities & commitments

• Update Multiyear Financial Projection• Make adjustments now; don’t wait

• Savings have a multiplier effect• Match expenditures to projected funding levels

• Eliminate structural deficit in budget• Implement new plan ASAP

Budget Reductions (cont.)

Develop a list of reductions that exceeds your reduction target …… and then prioritize

• Board authorization to implement list by priority• Avoids necessity of constant, never-ending budget cutting

sessions• Revisit priority at budget reporting intervals and as

information changes• Budget adoption, interim reports, year-end closing, audit report

Budget Monitoring

Enrollment and Staffing• Update projections monthly as actual counts are taken

• Budget adjustments should be implemented immediately if actual data indicates a material difference from the projected amounts

• Mid-year staffing adjustments may also be necessary to prevent fiscal distress as a result of overstaffing

• But not recommended, if it can be avoided• Disrupts instructional program

Budget Monitoring (cont.)

Budget Overages (actual exceeds budget)

• Preventing overages• Use position control system• Use “hard stops” on purchase orders

• Responding to overages• Present budget modifications monthly• Resolve overage condition

• Identify condition that led to overage• Correct the condition

General Ledger Monitoring

Monitoring general ledger accounts is also critical to soundfiscal monitoring

• Cash reconcile items that are not cleared• Accounts receivable/payable differences between

accruals and actual receipts/payments• Inventory that is over/understated• Payroll clearing accounts that are not reconciled

• Payroll clearing is the most commonly under-scrutinized area

Compensation

Largest portion of budget• Average = 80% in school districts, 70% in charter schools• Components of increased cost

• Compensation increases (non-salary schedule)• Salary schedule increases/bonuses• Step and column salary schedule movement• Benefit rate increases (statutory)• Benefit program changes (contracted)

Compensation (cont.)

Identify Available Dollars• Available new revenue

• COLA, growth• Less increased fixed costs (previous commitments)

• Step and column salary schedule movement• Statutory benefit rate increases, utilities, insurance• Increased staffing needs

• Less discretionary allocations• New/expanded/restored programs• Other priorities

• Equals amount available for compensation

Compensation (cont.)

Desperate Fiscal Climate• Traditional budget reduction approaches may not be

sufficient• Creative solutions may be needed to stay fiscally and

cash solvent• May need to consider:

• Compensation deferrals• Can’t pay now, but may be able to later

• Compensation rollbacks• Across-the-board reductions

• Salaries/Benefits/Both

Compensation - Statutory Benefits

Statutory benefit rates likely to increase• Retirement systems have suffered substantial losses in recent

years• Rate adjustments have been implemented • Benefit reductions are under consideration

• Social Security, Medicare in need of significant fixes• Proposals are politically risky

• Nothing concrete proposed to date• Unemployment Insurance costs on the rise

• More layoffs = higher rates

Compensation - Contracted Benefits

Health & Welfare Benefit Programs• Medical, dental, vision, life, etc.• Health care reform may not provide timely solutions

• May increase costs • Increase purchasing power

• Join a JPA• Consider HMOs, Health Savings Accounts (HSAs)• Review benefit caps on premiums, co-pays, deductibles• Validate dependent enrollments

Position Costs

Staff positions to meet charter school’s program needs• But no more• Overstaffing - and unfunded compensation agreements -

are the largest components of financial failures!• Consider options before creating permanent positions

• Use substitutes/extra duty/overtime• Contract out (if legal)

• Short-term cost < permanent cost

Contributions to Restricted Programs

Some restricted programs require contributions from unrestricted funding sources

• Some are mandated by law• Some are discretionaryManage contributions

• Limit contributions to the amounts necessary• If unexpected contribution occurs, investigate

• Educate the organization that the contribution occurred and why

• Determine the level of commitment• One-time vs. ongoing

Budget Development Best Practices for Charter Schools

Budget Development – Governance

Adopt charter school board policies and regulationsregarding budget management• Guidance to staff regarding expectations

for the budget• Establish:

• Goals and objectives for the charter school• Instructional/financial/other

• Process by which budgets are aligned with goals and objectives

• Process to identify budget assumptions• Process to develop budget

Budget Development – Strategies

Develop budgets with a multiyear perspective• Be thinking in a 3 to 5 year time frame

• Primary focus on budget year• Additional focus on subsequent years

• Not as detailed• Organization needs a compass to see where it’s going

• Action plan• What we need to do, and when• To achieve goals and objectives

Budget Development – Strategies (cont.)

Use conservative assumptions• Estimate low on revenues, high on expenditures• But don’t overdo it!

• Estimating too high or too low can create serious problems

• Loss of credibility• Harm to programs• Negative effect on student performance


Allocate new revenues (if any!) to needs, then wants• Fund the base and related fixed cost increases first

• Inflationary effect on supplies, etc.• Benefit increases

• Statutory and contractual• Step and column movement across salary

schedules (if any)• Contractual/debt service obligations


Then, if funds are available, allocate new funds to wants

• Program development, expansion, restoration• Compensation increases• Building reserve levels

This process also works when funding decreases.

Multiyear Financial Projections

State law identifies the duties of a charter

authorizing entity• Charter authorizing entity must monitor the fiscal

condition of charter schools

A budget and a multiyear financial projection (MYFP)

are integral information for the oversight function• 2 to 5 years after budget year

Multiyear Financial Projections (cont.)

MYFP Focus• meet required reserve for economic uncertainty• positive unappropriated fund balance

• Deficit spending trends? Must:• increase revenue• decrease expenditures• or both

Report Format

Budget Report Format - Narrative

• How the budget aligns with the goals of the board• How it supports student learning • Significant assumptions used to develop the budget• Budget reduction detail

• Response to reduced funding, declining enrollment or other factors

Report Format (cont.)

Unaudited Actuals Report• Format may be prescribed by the State • Basis for independent financial audit• Last chance to affect the charter school’s financial

status before the audit begins

Report Format (cont.)

Typical List of Supplemental Information • Budget assumptions for revenues and expenditures• Analysis of enrollment and average daily attendance (ADA)

trends • An organizational chart• Statement of cash flow for the current and subsequent

fiscal year• Profit and loss statement• Disclosure of all multiyear fiscal obligations, such as loans,

lines of credit, etc., for the next three years

Cash Flow Management Techniques for Charter Schools

The Importance of Cash Flow

• Cash flow is an important factor in determining the fiscal health of the charter school.

• Many schools are using their reserves to balance their budget.• Using reserves affects future cash flow.• Less reserves means less cash.

• It is possible to maintain economic reserves in the budget, yet be out of cash.

• Cash shows no mercy – you either have it or you don’t/

State Cash Flow Management

As the state continues to experience shortfalls in revenue,they must have a means to improve their cash flow.

• Deferrals have been the key to improving the state’s cash situation, but have become detrimental for LEAs.

• Cash flow will continue to be challenging to manage for LEAs as deferrals are added, increased or lengthened.

State Cash Flow Management, cont.

Source: California State Controller’s OfficeSource: California State Controller’s Office

The Cash Concept

It is often difficult to conceptualize the specific nature of cash • Assets – liabilities = fund balance

But is the fund balance cash?• No:

• Assets are not all cash • Liabilities are accrued debts

• Therefore the fund balance is not all cash

Managing Receivables and Payables

Clean up receivables and payables as soon as possibleduring the fiscal year

• Best practice indicates that the majority of receivables and payables should be finalized by October 31

• Any outstanding balances should be investigated:• Is this still a valid receivable or payable?• When will it be received or paid?

Reconciling Cash• Best practice is to reconcile cash each month for each

fund–Not reconciling cash can result in significant surprises

once the backlog is caught up–The charter school will be able to more accurately

anticipate cash borrowing needs• What needs to be reconciled?

–The county treasurer’s records–The charter school’s financial system records–The bank’s records

• Remember to balance clearing accounts

General Ledger AccountsQuick quiz: What effect do these transactions have on cash?

No effect Increasing accounts payable for the utilities bill at year end

No effect Transfer of a cash receipt posted as revenue to the accounts receivable account

Increase Receipt of the amount previously posted as accounts receivable for the grant

No effect Accrual of accounts receivable for a grant

Decrease Payment to vendor for a textbook shipment accrued as accounts payable

No effect

Inc/(Dec) in CashTransaction

Generation of a billing for use of facilities

Cash Flow Projections - Example

Rows:A. Beginning cashB. Receipts – includes incoming cash from non-revenue

sourcesC. Disbursements – includes outgoing cash for non-

expenditure itemsD. Prior year transactionsE. Net increase/decreaseF. Ending cash

Sample Charter School Cash Flow

Columns:• One for each month• Actuals through which month?• Accruals column is for what?• What function does the Totals column provide?

Sample Charter School Cash Flow (cont.)

• Accruals column allows for noncash items that will be recorded on the books• Typically during year-end closing

• Totals column is the sum of all columns on the projection• Should balance to:

• The latest version of the current year’s budget• The prior year’s receivables and payables

Cash Flow Projection Tools

• Spreadsheets• Financial management software• FCMAT’s Budget Explorer software

• Web-based product• Free to all users• Charter school version under development• Visit www.fcmat.org to review

Apportionment Schedules

For the revenue or Receipts section of the cash flowprojection, apportionment schedules are available

• These account for much of charter schools’ incoming cash.

• Education Code Section (E.C.) 14041 in California details the amount of apportionments for charter schools.

Month

E.C. 14041(a)(2), (3), and (4)

After SBX4 162009-10 Deferrals

Received in 2010-11Share of 2010-11

Statutory Apportionment

July 2010 5.00% 12.25% 0.00%

August 2010 5.00% 7.5% 5.00%

September 2010 9.00% 5.25% 14.00%

October 2010 9.00% 0.00% 0.00%

November 2010 9.00% 0.00% 9.00%

December 2010 9.00% 0.00% 9.00%

January 2011 9.00% 0.00% 18.00%

February 2011 9.00% 0.00% 0.50%

March 2011 9.00% 0.00% 0.00%

April 2011 9.00% 0.00% 15.00%

May 2011 9.00% 0.00% 4.50%

June 2011 9.00% 0.00% 0.00%

July 2011 17.50%

August 2011 7.50%

Total Principal Apportionment 100.00% 25.00% 100.00%

California Principal Apportionment Schedule 2010-11

Ongoing Deferrals - California• $2 billion deferral from the Principal Apportionment from

February to July• $570 million in K-3 Class-Size Reduction funds from February to

July• $679 million deferral from April to August • $1 billion deferral from May to August

• Generally Accepted Accounting Principles (GAAP) caveat on the accounting treatment of any deferral that crosses fiscal years • Verify with your audit firm before recording on your books

2010-11 One-Time Deferrals - California

The advanced apportionment for July 2010 will be deferred by60 days in the amount of $2.5 billion

The October 2010 advanced apportionment will be deferred by90 days in the amount of $2.5 billion

The March 2011 principal apportionment will be deferred untilApril 29, 2011, in the amount of $2.5 billion

Exemptions from Apportionment Deferrals - California

Charter schools have two opportunities to apply for an exemption from the July 2010, October 2010, and March 2011 deferrals:

• #1 - June 1, 2010 deadline – All 3 of above deferrals• #2 - January 5, 2011 deadline – only the March 2011 deferral• LEAs that receive exemptions from ABX8 14 (Chapter

10/2010) will still be subject to the permanent deferrals that occur in February, April, May, and June.

In-Lieu Property Taxes

Payments from the charter school’s sponsoring LEA • In lieu of the charter school’s share of the LEA’s local

property taxesNo deferrals available to sponsoring LEA

The annual amount is the lesser of:• Property taxes per ADA • Multiplied by the charter school’s ADAOR• The charter school’s general purpose entitlement

In-Lieu Property TaxesAugust 6%

September 12%October 8%

November 8%December 8%January 8%February 8%

March 1/3April 1/6May 1/6June 1/6

In-Lieu Property Taxes (cont.)

• July = settle-up month• Actual property taxes of prior year • Actual P2 ADA of prior year• Less amounts transferred August through June

• February • Final adjustments to the prior year• In conjunction with the final reconciliation of annual

apportionments to schools

Categorical Apportionments• Federal Apportionments are considered Tier I

• No flexibility • No transfers, except as allowed for No Child Left Behind

(NCLB) programs.• Funds will be apportioned according to established

schedules.• California Tier III categorical programs have experienced a

change in cash flow.• The 41 programs transferred from restricted to unrestricted

will now follow the regular apportionment schedule (i.e., 5, 5, 9 . . . ) for cash flow purposes

• See the CDE’s worksheet

Local Revenues

Other local revenues

• The charter school is the best estimator of other local revenues

• Use historical percentages and information on which to base the school’s current projection

• Update the projections frequently to reflect actuals to date

Expenditures• Estimating the timing of expenditures is critical for cash flow purposes

• Dividing the budgeted amount by 12 months is not a good strategy• It most likely will not give you an accurate picture of the LEA’s

cash needs to meet obligations • As the fiscal year progresses, analyze projected spending amounts

• Use the projected budget as a basis for the cash flow• Make sure all reductions or increases are accounted for in the

cash projection• For example, if spending freezes have been enacted, have the

anticipated savings been accounted for in the cash flow projection?

Double Checking

Once the details of the cash flow projection are complete,compare the “Total” column figures as specified:

• Receipts and Disbursements sections should equal the revenue and expenditure line items in the budget

• Exception: Other Receipts/Non-Revenue and Other Disbursements/Non-Expenditures should equal year-end balances for current-year asset and liability accounts

• Prior-Year Transactions section should equal the prior-year asset and liability account balances

Projecting Cash Flow

Now, ask these questions:

Based on the 2010-11 cash projection:• Is cash negative at any time?• If so, what borrowing options are most

appropriate?

Projecting Cash Flow (cont.)

If borrowing is necessary at year end, the most frequently used option is a temporary transfer from another fund

• Are there sufficient balances in other funds?• How long will the borrowing be needed?

A midyear TRANs may be an option as well• See following section on cash borrowing options

Cash Borrowing Options

External borrowing – three options:• Tax and Revenue Anticipation Notes (TRANs/RANs)• Private financial institutions• Accounts receivable factoring

Now, with state deferrals, even more agencies require borrowing

Some LEA’s – typically in a fiscal crisis – have borrowed from the COE or the county treasurer

• This option not available to charter schools in California

Cash Borrowing Options (cont.)

Outside experts are needed for legal and financial mattersrelated to the issuance

• A financial advisor can save you time and money• Legal counsel can ensure that the transaction complies

with all laws and regulationsMost agencies issue TRANs by pooling their needs withother agencies

• Saves on costs of issuance• Coordinated through various public agencies/nonprofit organizations


Agreeing to a third-party intercept would help secure aTRANs/RANs loan

• The county treasurer or county office of education could intercept TRANs/RANs-pledged charter school revenues

• Pay them directly to the lender• Provides lender added security• May be necessary to obtain financing


Borrowing from a financial institution is an option• Line of credit

• Secured or unsecured• Issuance costs and interest rates tend to be higher than

for a TRAN• Private financing tends to be more difficult to acquire

• May find qualification requirements onerous• Particularly for new or start-up charter schools


Accounts Receivable factoring is another option• Less common• Involves selling accounts receivable to a financial institution

at a discount• Need significant receivables for this option to generate

meaningful cash flow• Relatively expensive• TRAN/RAN is likely less expensive

Other Cash Flow Options

The State of California provides cash flow loans to charterschools• Used for start-up costs• Relatively short-term (3-5 years)• Reasonable interest rates and issuance costs• Check with CDE; visit their website

Cash Borrowing Options

Loans require the charter school to repay the lender• What happens if the charter school can’t?

• It’s GAME OVER• Charter schools are not eligible for an emergency

state loan in California.• Fund balance can be low or negative, but cash cannot

Relationships

Developing a relationship with your lender and other partiesinvolved is critical to successful borrowing

• Financial institution• County office of education• County treasurer• Management company (if applicable)• Sponsoring LEA• Financial advisor/legal counsel

Effective Monitoring Processes and Procedures

Presented by:


Michelle Plumbtree, Chief Management Analyst, FCMAT

What is Effective Oversight

• Identify at least one staff member as a contact person.• Visit each charter school at least annually.• Ensure that each charter school files all required

reports.• Monitor the school’s fiscal condition.• Notify the CDE if a renewal is granted or denied, the

charter is revoked, or the school closes.

The Law Requires:

What is Effective Oversight (cont.)

• Always be aware of what is going on.• Document efforts to have issues resolved.• Form at least a neutral relationship.• Build trust; foster open communications.• Review the audit.

What are the Best Practices

What is Effective Oversight (cont.)

• Ensure audit findings are resolved.• Track experiences over time to see if

policies, practices, and preferences are working.

• Suggest revisions if they are not working.• What will keep my agency out of court?• What would a jury think I should have done?

What are the Best Practices (cont.)

Memorandum of Understanding (MOU)

• It’s important to develop a comprehensive MOU as a framework for the relationship and to supplement the charter provisions. • The purpose is to clarify financial and operational issues.

• An MOU is an agreement between the authorizing agency and the charter school.

• Allows the chartering agency to identify expectations. • Not required by charter law but highly recommended.• Is a binding legal agreement once approved.

Memorandum of Understanding (MOU) (cont.)

• The MOU should define specific expectations and responsibilities of the two parties, such as:• student performance• expectations for educational programs• special education• frequency of school site visits• financial reporting requirements• services provided by the sponsoring agency.


Elements of a comprehensive MOU outline expectations regarding oversight roles and responsibilities and a well defined periodic review process through:

1. An expanded business plan2. A facilities plan regarding the use and payment for

space that also reflects the terms and conditions for use of district property.

3. An administrative and support services plan


• It is critical to clearly spell out the relationship between charter schools and their chartering agencies.

• The MOU is traditionally enforced as part of the charter, and replaces any inconsistent language in the charter.

• The State Board of Education and Department of Education have a form of MOU available.

County Office Authority

• To monitor or conduct an investigation into the operations of the charter school based on written complaints by parents or other information that justifies such actions.

• To review or audit the expenditures and internal controls of a charter school at any time during the fiscal year if there is reason to believe that fraud, misappropriation of funds, or other illegal fiscal practices have occurred.

• May request the County Office or Fiscal Crisis and Management Assistance Team (FCMAT) to review the fiscal or administrative condition of a charter school.

Annual Audits

Must contract for an audit by April 1 of each year • Contract with an auditor from the Certified Public Accountants

Directory published by the State Controller’s Office

Must submit an annual independent financial audit by December 15 of each year to the following:• State Controller’s Office• CDE’s Charter Schools Division• CDE Audit Resolution Office• Authorizing agency• County office of education where the school is located

Annual Audits (cont.)

The audit shall be conducted in accordance with General Accounting Office (GAO) standards for financial and compliance audits and in accordance with the audit guide adopted by the Education Audit Appeals Panel (EAAP).

Delays: There is no provision in the law for an extension on a charter school audit.

Annual Audits (cont.)

Audit findings•To ensure a favorable recommendation for renewal, each audit must be free of material findings and exceptions, or corrective action plans must have been implemented in a timely manner. •The auditor is required to review the correction, or plan of correction, to determine if the exceptions have been resolved in the subsequent year audit

Charter Revocation

• Committed a material violation of any of the charter (or MOU)

• Failed to meet/pursue any of the pupil outcomes• Failed to meet GAAP, or engaged in fiscal

mismanagement• Violated any provision of law

What Are Grounds For Revocation?

Charter Revocation (cont.)

• The Code sets forth the process to follow.• The revocation process only applies when the

grounds for revocation also require a chance to cure the violation.

• There is no statutory right to cure any revocation based on grounds that constitute a severe and imminent threat to the health or safety of the pupils, and there is no right to appeal these kinds of violations

What Is The Process For Revocation?

Charter Revocation (cont.)

• Any violation that does not constitute an imminent threat may be appealed.

• Denial of a revocation appeal may be appealed.• The test on appeal is whether the revocation is based

on substantial evidence.• If overturned on appeal, the agency that granted the

charter remains the oversight agency

Can Any Revocation Be Appealed?

Presented by: Bill Hornback, Counsel, Schools Legal ServiceMichelle Plumbtree, Chief Management Analyst, FCMAT

Common Issues

Governance Issues: What Laws Apply

• There is an unresolved dispute in the state over the application of Government Code Section 1090

• Govt. Code Section 1099 – Incompatible Offices• Govt. Code Section 1226 – Incompatible Activities• Govt. Code Section 53227 – Employees on the Board• You get to decide the answer, each time you look at a

charter petition, an original petition, or on appeal, or on renewal

What Laws Apply (cont.)

• Some laws are accepted to apply, such as:• Political Reform Act – Government Code• Brown Act – Government Code

• Another grey area is the granting agency’s right to a seat on the board of directors of any not-for-profit corporation operating a charter school.

• The answer is: Whatever you want it to be.

Class Fees, Deposits and Other Charges

Free School System

• California Constitution provides for a free school system

• Since 1874, the California Supreme Court has interpreted this to mean students are entitled to be educated at the public’s expense.

• Title 5, California Code of Regulations, Section 350, specifically states:“A pupil enrolled in a school shall not be required to pay any fee, deposit, or other charge not specifically authorized by law.”

Non-Allowable Fees

• Public schools, including charter schools, cannot levy fees as a condition for participation in any class, whether elective or compulsory. This includes:

• Security deposits for locks, lockers, books, class apparatus, musical instruments, uniforms or other equipment.

• Fees for participation in either curricular or extra-curricular activities.

• All supplies, both necessary and supplemental, must be provided free of charge whenever a particular curricular or extracurricular program is adopted.

Non-Allowable Fees (cont.)

• Gym or Physical Education Clothes• EC Section 49066 states, “No grade of a pupil

participating in a physical education class may be adversely affected due to the fact that the pupil does not wear standardized physical education apparel where the failure to wear such apparel arises from circumstances beyond the control of the pupil,” such as lack of sufficient funds.

Non-Allowable Fees (cont.)

• The CDE has stated the position that schools may require students to purchase their own gym clothes of a district specified design and color so long as the design and color are of a type sold for general wear outside of school. Once the required gym uniforms become specialized in terms of logos, school name or other similar characteristics not found on clothing for general use outside of school, they are considered school supplies and the district must provide the uniforms free of charge.

Allowable Fees• Fees for the following can be levied based on the

Education Code:• Transportation to and from school• Transportation to places of summer employment• Charges for food, limited by the free and reduced price

meal program• Insurance for field trips• Lost or damaged books or other district supplies• Direct cost of materials for property the student has

fabricated in class for their own use (if board policy in place)

Allowable Fees (cont.)

• Fees for school camp programs (i.e. outdoor science camp). The fee cannot be mandatory.

• Fees for field trips and excursions may be charged in connection with courses of instruction or school-related social, educational, cultural, athletic, or school band activities. The fee cannot be mandatory.

• Optional fingerprinting program for kindergarten or newly enrolled students, if offered.

• Actual cost of duplication of public records or student records.• Charges for medical and accident insurance for athletic team

members, except for those members who cannot afford to pay.

Gift of Public Funds

• California Constitution, Article 16, section 6 addresses the subject:

• Prohibits making any gift of public money to any individual (including public employees), corporation, or other government agency.

• “ ... the Legislature shall have no ... power to make any gift, or authorize the making of any gift, of any public money or thing of value to any individual … whatever …”

Gift of Public Funds (cont.)• Expenditures of school funds must be for a direct and primary public

purpose to avoid being a gift. • Expenditures that most directly and tangibly benefit students’ education

are more likely justified.• Must be within the scope of a school entity’s jurisdiction and purpose.• To justify the expenditure of public funds, the governing board must

determine that the expenditure will benefit the education of students within its schools

• Expenditures driven by personal motive are not justified even if they have a long-standing custom or are based on benevolent feelings

Gift of Public Funds (cont.)

• If the governing board has determined that a particular type of expenditure serves a public purpose, courts will almost always defer to that finding.• Put in board policy

• The following can be considered a gift of public funds unless in board policy:• Flowers• Candy• Donations to charity

Gift of Public Funds (cont.)

• Expenses CANNOT be considered a gift of public funds• Must have a direct or substantial purpose• Misappropriation of public funds is considered a

criminal act, with no monetary limit specified.• Better to be safe than sorry

Are gifts allowable?

• Not allowable, even if small in amount• Many think that “de minimus” gifts, those of trivial or

little value, would be okay (under $20/person).• Most courts would disagree.

Are Awards Allowed?

• Authorized by E.C. 44015• To employees for exceptional contributions; to students

for excellence• The board is required to adopt rules and regulations

about awards• if there is no policy or regulations, no awards are allowed

• Can’t exceed $200 unless in board policy• Awards to community members are not considered

authorized.• Birthdays, weddings, funerals and holidays are not

considered an award.

Are Awards Allowed? (cont.)

• Awards to employees are allowed if the employee:• Propose procedures or ideas that are adopted and

result in eliminating or reducing district expenditures or improving operations

• Perform special acts or special services in the public interest

• Make exceptional contributions to the efficiency, economy or other improvement in operations of the district

Is Employee Clothing/Attire Allowed?

• No specific statute or case authorizing such expense• Could definitely be considered a gift of public funds

• Not allowable unless required to perform his or her duties as a coach, club advisor, etc. or if considered an “award” under E.C. 44015

Are Employee Appreciation Meals Allowed?

• Appreciation meals do not qualify as awards• Attorney General says they are not “actual and

necessary” per E.C. 44032• They don’t provide a direct and/or substantial purpose,

so would be a gift of public funds

Good Business Practices

• Establish board policy and administrative regulations regarding what is considered allowable/unallowable

• Establish procedures to follow if questions arise• Set parameters for determining appropriateness• Assign a specific employee in the business office to

provide assistance• Provide annual training

Proposition 39 - Charter School Facilities

• You have facilities obligations to all in-district students, whether or not they are enrolled in your schools.

• You have facilities obligations to charter schools granted by someone else, if your students are enrolled.

• Adverse impacts on your agency do not give you an excuse for refusing to provide facilities . . . Maybe.

• Lots of regulations exist on this subject

Charter School Facility Regulations

• Are detailed• Are confusing• Cost formulas are not easy to understand• Contain a provision stating that any facilities agreed to

by the agency and the charter school can meet the requirements of the law

• Dispute resolution requires non-binding mediation

Charter School Facilities

• May be requested if the school has projected having at least 80 units of ADA consisting of district pupils

• Are not required to be provided for non-district pupils• Must be “reasonably equivalent” to district facilities• Must be “contiguous”• Must be located reasonably near where requested• Must be maintained by the charter school, except for

capital improvements

Presented by: Gary Quiring, CSIS Implementation Specialist,

FCMAT

Data Management and Key CALPADS Concepts for Charter Schools

Data Management Topics

• Data management and charter schools

• CALPADS purpose, benefits and timeline

• CALPADS security requirements

• CALPADS implementation

• Data management services provided by FCMAT/CSIS

Importance of Data Management

• All local education agencies (LEAs) are required to assign and maintain Statewide Student Identifiers (SSIDs).

• Official reporting of enrollment, dropout, graduate and other data is now based on CALPADS data.

• Funding and public views on the efficacy of your school are affected by local data management practices.

Importance of Data Management (cont.)

• Data management practices affect the quality of local and CALPADS data.

• CALPADS data is used in the AYP and API calculations.

• CALPADS data feeds into the CDE DataQuest system and the Ed-Data (Education Data Partnership) system.

• Fiscal data also feeds into the Ed-Data system.

• CALPADS data is being sought by researchers to evaluate program effectiveness and drawconclusions.

Importance of Data Management (cont.)

• Data management practices affect the public’s view of school data.

• Reports on your charter are available to the public via DataQuest and Ed-Data.

• News media use DataQuest and Ed-Data when researching and reporting education issues.

• Parents use Ed-Data to identify quality schools for their children.

Charter School Reporting Responsibilities

• There are two types of charter schools for CALPADS reporting:• Charters that report data independently from their

authorizing agency• Charters that report data through their authorizing

agency

Charter School Reporting Responsibilities (cont.)

• Charter schools may elect to report through their authorizing agency (LEA) or independently.

• The CALPADS reporting method can be changed each May for the following reporting year.

• Changing the charter school CALPADS reporting method is a charter school decision.

• Decision should be made in consultationwith the authorizing LEA.


• The decision should be based on local capacity to maintain and report student data.

• The charter school reporting method is the same for CALPADS and OPUS-CBEDS.

• See CDE’s CALPADS Website: http://www.cde.ca.gov/ds/sp/cl/charterschools.asp


• Not meeting CALPADS reporting requirements may result in zero enrollment counts.

• Zero enrollment counts will result in a loss of any funding based on official enrollment.

• All students must be exited correctly in CALPADS when a school closes.

California Longitudinal Pupil Achievement Data System

(CALPADS) Purpose, Benefits and Timeline

CALPADS Purpose

• Provide LEAs and the CDE with access to data necessary to comply with NCLB reporting requirements.

• Provide a better means of evaluating educational progress and investments over time.

• Provide LEAs with information that can be used to improve pupil achievement.

• Provide an efficient, flexible and secure means of maintaining longitudinal statewide pupil level data.

CALPADS Benefits

• Uniform statewide data collection and maintenance.

• Immediate access to information on new students, entered by LEAs where the students were previously enrolled.

• Visibility of data to support school performance improvement.

CALPADS Benefits (cont.)• Download of data from CALPADS to conduct analyses

using local tools • Print and download reports• Filter report data based on user-selected filters (e.g.

district, school site, grade level, demographics, program participation)

• View summary and detail reports (e.g. Student Demographic, Program Participation, Enrollment History, Enrollment Exit History, Assessment History)

• View assessment test results(e.g. CAHSEE, CELDT)

CALPADS Benefits (cont.)

• Provides CDE program staff the ability to access and extract data for state and federal reporting and analysis

• Provides authorized CDE staff the ability to create ad hoc reports

• Provides the ability to maintain at least 20 years of data in a production environment

• Is designed to enable expanded capabilities over time

Snapshot Collection Windows

Fall 1 Annual Enrollment Graduates and Dropouts Enrollment Subgroups

Fall 2 Course Enrollment Certificated Staff Assignments English Learner (EL) Services

Spring 1 English Language Acquisition Status Title III Eligible Immigrants

End of Year 1 Course Completion Career Technical Education (CTE)

End of Year 2 Program Participation

End of Year 3 Discipline and Truancy

End of Year 4 Waivers

CALPADS Collections TimelineWhich Data are Expected?

CALPADS Collections Timeline (cont.)

Snapshots Certification & Amendment CalendarCALPADS

Submission Census

Day Snapshot Collection

Window Certification

Deadline Amendment Window

Fall 1 October 6 October 6 – December 16 December 16 December 17 - January 20

Fall 2 October 6 November 8 – January 27 January 27 January 28 – February 24

Spring 1 March 1 March 1 - March 25 March 25 March 26 - April 22

EOY 1 noneTBDEOY 2 none

EOY 3 none

EOY 4 none

CALPADS SecurityRequirements

CALPADS Security• If your charter school is independently reporting to

CALPADS, your charter school LEA CALPADS administrator is responsible for assigning CALPADS accounts for charter school staff.

• If you report CALPADS data through your authorizing agency, you should coordinate with your authorizing agency to establish:• Charter school staff accounts in CALPADS• User roles and access levels for your charter’s data

CALPADS Security (cont.)• Administrators of independently reporting charter schools

need to complete and submit an LEA CALPADS administrator application form to the CALPADS operations office.

• Once the application is approved, the named LEA CALPADS administrator will be provided access (username and password) to the CALPADS system.

• The LEA CALPADS administrator is responsible for creating and assigning CALPADS accounts for charter school staff.

CALPADS Security (cont.)• Important to establish local business practices that limit

access to CALPADS data, and prevent unauthorized access to CALPADS data

• Charter school administrators are accountable for all staff who access CALPADS data.

• The LEA CALPADS administrator account is NOT for daily use.

• The LEA CALPADS administrator MUST create an LEA account for daily use.

CALPADS Security (cont.)

The LEA CALPADS administrator creates and maintains CALPADS accounts for staff users. This includes password resets and account revocation.

The account controls access to data based on the following:• User Security Level - determines the level of data that

the user can see in CALPADS• School• LEA

• User Roles - give the users access to specific data and functions in CALPADS

CALPADS Security (cont.)

• Charter management organizations sometimes administer and report data for more than one charter school.

• The CALPADS operations office can create a multiple charter school account for a single user, upon approval by individual charter school administrators.

• Staff training is required when the following occurs:• Change of status to independently reporting• Staff turnover• Change of student information system

• Batch file submissions for independently reporting charters:• Reporting LEA field must contain the school code• School of Attendance must contain the school code

Lessons Learned

• Some student information systems are not completely CALPADS compatible.

• CALPADS batch file templates are the best way to fix this issue• https://www.calpads.ca.gov• Login, then click on the Help menu

Lessons Learned (cont.)

• LEA admin account cannot be used for:• Anomaly contact• Submission or access to NSLP data• Data certification (Level 1 and Level 2)• Daily use

• These roles must be assigned to a different user account• Plan ahead for certification deadlines

• CALPADS Calendar: http://www.cde.ca.gov/ds/sp/cl/rptcalendar.asp

Lessons Learned (cont.)

CALPADS Implementation

Leadership for Data Management

• Know the requirements, rules and deadlines, and work to meet them• CALPADS file specifications, code sets, data guide and

enrollment procedures:• http://www.cde.ca.gov/ds/sp/cl/systemdocs.asp

• Provide staff sufficient time to complete the work• Allocate resources for staff training and SIS maintenance

Leadership for Data Management (cont.)

• Monitor implementation.• Help resolve problems.• Encourage collaboration, both internal and external.• Before certifying data, have appropriate staff review

certification reports:• Program directors• Food services• Human resources

Leadership for Data Management (cont.)

• Use the CDE/CSIS certification reports:

• Superintendent’s Data Inconsistency Alert Summary Report

• Superintendent’s Data Inconsistency Alert Detail Report

• Data Inconsistency Alert Guide

CALPADS Training

Online Self-Paced Trainings:• Training 1: Overview of CALPADS Objectives and Requirements

• Training 2: CALPADS Key Features, Key Concepts and System Administration

CALPADS Training (cont.)

WebEx and Online Self-Paced Trainings:• Training 3: CALPADS SSID Enrollment• Training 4a & 4b: CALPADS State Reporting and

Anomalies• Training Fall 1: Fall 1 Reporting and Certification• Other TBD (Fall 2, Spring, End of Year)Regional Trainings at County Offices of Education• Training Fall 2 – Two hour regional training

Requirements References

• Review CALPADS Documentation:• File Specifications• Code Sets• Extract Specifications• SSID and Enrollment Procedures• Data Guide• Valid Code Combinations• Error List• Technical Update• Located at: http://www.cde.ca.gov/ds/sp/cl/systemdocs.asp

Requirements References (cont.)

• Online CALPADS documentation (Login and click on the Help menu):• User Manual• LEA Operations Manual• Quick Start Guide• Batch File Templates Instructions and Tips

• A two-part question will be required to collect race and ethnicity information from students and staff

• There is no category for “Unknown” or “Decline to State”• Requirements apply ONLY to 2009-2010 and later

student enrollments and staff hires• Frequently asked questions posted at:

• http://www.cde.ca.gov/ds/td/lo/refaq.asp • Other resources posted on CSIS website:

• http://www.csis.k12.ca.us/library/calpads/• Sample student and staff forms• NCES document

Federal Requirements for Race and Ethnicity

Data Auditing Procedures

Elements of a Data Audit:• Analysis of findings• Error determination or exception• Error replication• Sources of errors and sources of correct data• Notify appropriate staff of errors detected and how they

will be corrected• Correction of problems• Determine if local processes need improvements

Best Practices for Data Quality

Establish Standards• Evaluate local and state requirements• Correlate state codes• Identify system of recordImplement Standards and Expectations• Document standards • Conduct training• Provide supportDesignate data stewards

CSIS CALPADS Support Tools

Found in the CALPADS menu under CALPADS Documents on the CSIS homepage (http://www.csis.k12.ca.us)

CSIS CALPADS Support Tools (cont.)

• CFS Aligned Gap Analysis Tool

• CFS Gap Analysis and Planning Tool

• Preparing to Submit Elementary Course Data

• Preparing to Submit Scheduled Course Data

Data Reporting Responsibilities and Collaboration

• Coordinate with your district if you report with them.• Create or expand your data management team.• Define clear roles and responsibilities with respect to

CALPADS.• Encourage communication and collaboration.

Local Staff Training

• CSIS CALPADS Trainings 2-4 are “train the trainer” based• Online self-paced trainings allow focus on selected topics• Establish local policies for CALPADS enrollment updates

and anomaly resolution• Train staff on CALPADS and local policies• Train staff on new CALPADS functionality in local SIS

FCMAT/CSIS Data Management Services

FCMAT/CSIS Data Management Services

• Academic records transfer (ART)• Address validation (AV)• Direct certification (DC)• Eligibility in local context (ELC)• Data management coordinator training• Onsite technical assistance (fee based)

Academic Records Transfer

• Service for sending student records from secondary to postsecondary institutions

• For more information and to register for training, visit http://www.csis.k12.ca.us/rt/default.asp

Address Validation

• Free FCMAT/CSIS service to correct student addresses or notify the LEA of addresses that need to be corrected

• Corrected addresses improve communication to parents• If sent to CALPADS, corrected addresses can increase

matching for direct certification• Address validation is not currently part of CALPADS• For more information and to register for training, visit

http://www.csis.k12.ca.us/services/AV/default.asp

Eligibility in Local Context

• Free service to automate transmitting the top 12.5% of 11th grade student records to the University of California – Office of the President (UCOP)• Top 4% of students in each California high school class will

be designated UC-eligible

• For more information and to register for training, visit http://www.csis.k12.ca.us/services/ELC/default.asp

Data Management Coordinator Training

• Free training for staff who are new to education and/or new to data management. The class is in two parts:• Part 1 focuses on key data management concepts, data

constituencies and ways to build organizational leadership and support for data management

• Part 2 focuses on factors affecting data quality, data security, data use and reporting considerations.

• For more information and to register for training, visit http://www.csis.k12.ca.us/e-learning/services-registration/default.asp

FCMAT Onsite Technical Assistance

• Fee-based service

• Interested LEAs can obtain individual assistance in:• Local data management practices• CALPADS implementation

Contact Information

CALPADS Supporthttp://www2.cde.ca.gov/CALPADSHELP/DEFAULT.ASPX

CSIS Support (ART, AV, DC, & ELC)http://www.csis.k12.ca.us/support/ContactSupport/

Gary [email protected]

CALPADS Resources• CDE CALPADS:

• http://www.cde.ca.gov/calpads

• CALPADS file specifications, code sets, data guide and enrollment procedures:• http://www.cde.ca.gov/ds/sp/cl/systemdocs.asp

• Sign up for CALPADS listserv:• http://www.cde.ca.gov/ds/sp/cl/listservs.asp

• CSIS CALPADS:• http://www.csis.k12.ca.us/library/calpads/

CALPADS Resources (cont.)

• Charter school CALPADS and CBEDS-OPUS data reporting policy:• http://www.cde.ca.gov/ds/sp/cl/charterschools.asp

• CALPADS training registration page:• http://www.csis.k12.ca.us/e-learning/calpads-

registration/

• CALPADS self-paced training:• http://www.csis.k12.ca.us/e-learning/sp-training/

CALPADS/sp-training.asp

CALPADS Resources (cont.)• DataQuest

• http://dq.cde.ca.gov/dataquest/ • Ed-Data

• http://www.ed-data.k12.ca.us/welcome.asp • CALPADS file upload templates

• https://www.calpads.ca.gov• Login, then click on the Help menu

• CALPADS User Manual• https://www.calpads.ca.gov• Login, then click on the ? menu

CALPADS Resources (cont.)

• CALPADS update FLASH• http://www.cde.ca.gov/ds/sp/cl/communications.asp

• CALPADS known issues updates• http://www.cde.ca.gov/ds/sp/cl/knownissues.asp

• Education data newsletter• http://www.cde.ca.gov/ds/sd/cs/

Foretelling The Future

Foretelling The Future

• School districts are converting schools to charters to get start-up grant money.

• Education in the virtual real-time classroom is already here.

• A movement is under way to relieve virtual classroom programs from independent study rules/restrictions.

• Statewide/countywide charters dead?

This Is What’s Happening Already

Where to Go for Help

Fiscal Crisis and Management Assistance Team(FCMAT)

Website: www.fcmat.org

• Management Assistance• On-site Technical Assistance• AB139 Extraordinary Audit• Fiscal Crisis• Fiscal Advisor/Fiscal Expert• Online Help Desk• Professional Development

Charter School Division Contact Information

Charter Schools Division

California Department of Education, 1430 N Street, Suite 5401, Sacramento, CA 95814Phone: 916-322-6029 Fax: 916-322-1465email: [email protected]: www.cde.ca.gov/sp/cs

Questions and Answers

Thank you for attending!

Download - Charter School Fiscal Management Fiscal Year 2010/11 Presented by: Fiscal Crisis and Management Assistance Team (FCMAT) California School Information Services

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