Louisiana Association of Public Charter Schools September 12 th 2009 11:15 AM to 12:30 PM

1. Louisiana Association of Public Charter Schools September 12th 200911:15 AM to 12:30 PM Developing a System to Reach Back Office Sustainability

2. What this session will cover • Introduction – Panelists / Topic – Sustainability • Business Manager Challenges • The Statistics – Charter School Closures • The Necessity of Strong Financial and Operational Management – The Why • DFO’s new to charter (Human & Economic Sustainability) • Panel Discussion Questions (Topics) • Best Practices Abacus Charter School Consulting

3. Business Manager Challenges • High Compliance Sector • Steep Learning Curve • Limited Educational Opportunities to Mitigate Learning Curve • Job Includes Satisfying Multiple Constituent Groups • Students/Parents/Teachers/Principal, LADOE, RSD, Board, Donors, Other Federal/State/Local Agencies, Auditors • Finite Human and Economic Resources • Pressure to push as much public dollars to the academic program as possible Abacus Charter School Consulting

4. Finite Resources For-Profit vs. Non-Profit "A for-profit's mission is to create as much value for its stockholders as possible, within the constraints of society. The non-profit's mission is to create as much value for society as possible, within the constraints of its money." Abacus Charter School Consulting

6. Statistics – Charter School Closures • Currently there are 4,600 charter schools serving 1.4 million students in 40 states and the District of Columbia   • Of the over 5,250 charter schools that have ever opened, 657 have closed since 1992. While reasons vary, 41 percent of the nation’s closed charter schools were a result of financial deficiencies caused by either low student enrollment or inequitable funding. This figure should come as no surprise considering charter schools across the country are funded at only 61 percent of their conventional public school counterparts according to the 2008 Annual Survey of America’s Charter Schools. • 27 percent of the charter schools were closed for mismanagement. The data shows that ineffective schools first demonstrate the inability to remain financially viable or effectively operate well before there are signs that the school is struggling academically.  • Only 14 percent of the nation’s charters have been shut down for poor academic performance—meaning they reached a point at which meaningful measures could be used to close a school.  • 10 percent of the nation’s closed charter schools were closed for reasons that had nothing to do with the quality of the charter school, but everything to do with a hostile policy environment. Such cases, called “district” closures, are instances where local school boards or state entities have intentionally created problems that compromised the school’s ability to remain operationally sound. Abacus Charter School Consulting

7. Why world class finance and operational management is necessary……the Why • Charter Schools are closed for financial and operational mismanagement • Audit Findings – Audit findings will be published in your annual financial audit which is a public record. Unresolved year on year repetitive audit findings can result in a qualified or adverse audit opinion. (Domino effect – School’s loss of financial and operational credibility)  • Accountability for Financial Results – It is critical that we leverage your expertise at the school site level and develop manageable, scalable policies and procedures  • Heightened Compliance – There will be heightened compliance associated with seeking to capitalize on additional revenue streams (i.e. PCSP, competitive federal and state innovation grants)  • Regional Test Case – The high population of charter schools in Louisiana qualifies as a regional test case. Turn-around schools are a critical component of national school reform  • National Attention – New Orleans is a national test case. As such, you have the opportunity to be a national thought leader and source of best practices  • Exposure - Unlike all other public schools, charter schools must be proactive in their efforts to stay open. They must set and meet rigorous academic goals and actually meet or exceed their state’s proficiency standards. Also unlike conventional public schools that intentionally remain under the radar, charter schools operate under intense scrutiny especially by teachers unions, the media and lawmakers. Abacus Charter School Consulting

8. Transitioning from Why to How • Panel Discussion (Interview Quotes) • Panel Discussion Topics • Best practices in Communications (Internal / External) / Networking • Best practices in Compliance Reporting • Best practices in Financial Modeling including managing key financial drivers like school staffing, transportation etc. • Best practices in Board Reporting and satisfying multiple constituent groups • Best practices in managing growth (school growth, student enrollment, back office staffing mix) • Best practices in internal controls - looking through the auditor lens • Best practices in time management & prioritization Abacus Charter School Consulting

9. Panelist Quotes • Regarding Internal Controls: “Adopt a philosophy of auditable transactions from point of origin rather than going back and getting ready for the audit” • Regarding Internal Controls: “Train the School Leaders, Teachers, and everyone down to the cash handlers and it will make you life much easier” • Regarding Compliance: “Do your homework don’t learn by accident” • Regarding Time Management: “Your time is not your own, you think about it 24 hrs a day, 7 days a week” • Regarding Networking: “Talk to the decision makers” and “Ask the questions” • Regarding Philosophy: “Charter is the answer, you cannot run a school from afar” “You must be on the ground and accessible” “Our job is to enhance not to impede” • Regarding Managing Growth: “Get the first school right before you expand” • Regarding Sustainability: “Get your systems right out of the gate and it will save you hundreds of hours on the back end” • Regarding Business Managers Role: “A business manager must connect to the schools culture and be view themselves as an empowered decision maker that has an impact on academic results” Abacus Charter School Consulting

10. Panelist Best Practices • Best Practices • Leveraging the Community / Network • Integrated Approach – Financial Model (Poster), Accounting System, Board Reporting, and Compliance Reporting are integrated • NSNO Charter School Guidebook & Start-up and Operations Checklists • Using Systems and Templates – (e.g. Coding Stamp, HR Templates, Finance and Operations Templates) • Internal Communication - Con App Tool – Academic / Finance communication Abacus Charter School Consulting