Performance Standards Work Group

1. Performance Standards Work Group

2. Performance Standards Work Group Take a couple minutes to brainstorm a list of: • Fiscal outcomes produced by healthy, viable, and legally compliant charter schools • Operational outcomes produced by healthy, viable, and legally complaint charter schools.

3. Agenda • Introductions • Objectives • Financial Standards Overview • Break • Operational Standards Overview • Next Steps

4. Introductions • David Hartman, SchoolWorks • Tracy Kelley, SchoolWorks • Please share: • your name, • school, and • why you are here.

5. Why we are here today… • These workgroups have been charged to establish reasonable expectations SDP can adopt to ensure the charter schools in its portfolio are viable organizations with strong fiscal management and operational practices in place. Please note, that SDP has engaged this process to cognizant of the delicate balance between appropriate oversight and infringement on autonomy.

6. Session Objectives • Develop standards for SDP’s oversight of charter school’s financial and operational performance through a process that is objective, transparent, and comprehensive. • Gather stakeholder ideas and perspective while relying on a wide-range of sources to inform the development of SDP’s standards for oversight of charter school’s financial and operational performance. • Ensure that matters of financial management and compliance do not get in the way of a school’s ability to provide a high quality education to its students. 

7. Pennsylvania Charter School Law Charter school law requires • Compliance with federal statues • No Child Left Behind (NCLB) • Individuals with Disabilities Act (IDEA) • Family Educational Rights and Privacy Act (FERPA) • Internal Revenue Code for (501)c(3) organizations • Compliance with state statutes • The Right to Know • The Sunshine Act • The Public School Code of 1949 • The Public Officials and Employees Ethics Act

8. Pennsylvania Charter School Law • Requires a “written charter” signed by authorizer incorporating provisions from application • Requires SDP to “annually assess whether each charter school is meeting the goals of the charter” (Sect. 17-1728-A) • Requires that each charter school “submit an annual report” by August 1. • Gives SDP “ongoing access to the records and facilities…to ensure compliance” (Sect. 17-1728-A)

9. Pennsylvania Charter School Law • Allows SDP to revoke a charter where there are “violations of any of the conditions, standards or procedures contained in the written charter” (Sect. 17-1729-A(1)). • Does not define charter school operational performance standards or expectations, but specific laws of which charter schools are required to comply. • Prohibits a charter school from discriminatory “admissions policies or practices. • Allows a school’s charter to include provisions for the “establishment of reasonable criteria to evaluate prospective students” (Sect. 17-1723-A(2)).

10. Operational Performance Standards Academic performance was considered with stakeholders in July and August. We just considered financial performance. Our next task is to consider operational performance standards for charter schools.

11. Operational Performance Standards • PA charter school law does not explicitly provide an operational performance framework nor does it provide operational performance standards or goals. • SDP hopes that this workgroup will help establish the operational standards by which all SDP charter schools will be evaluated, informing both SDP and the individual school leaders about school performance and sustainability.

12. Operational Performance Standards SDP currently assess the following domain sub-categories when evaluating a charter schools operational practices • Board Oversight • School Oversight • ELL/SPED • Teacher Certification and Compliance • Leadership • Enrollment Application

13. Operational Performance Standards -Consider Theses Examples- Common Design Elements • Indicators, Measures, Metrics, Targets, and Ratings • Indicators include, equity, culture, governance, facilities, mission alignment • 6-7 Measures are used to evaluate an indicator • 3-4 rating options based on whether charter holder met the standard

14. Operational Performance Standards ROUND TABLE DISCUSSION Review the sample operational performance standards, every group should be prepared to identify: • Advantages and disadvantages of each • If any examples have missing elements • If any examples have elements to be eliminated • Deal breakers for SDP to consider

15. Consider… • Do you prefer one set of standards over the others? • If not, are there characteristics that are stronger or weaker in any? • Do you have a recommendation for SDP’s operational performance standards?

16. Questions?

17. 10 Minute Break

18. Operational Performance Standards Academic performance was considered with stakeholders in July and August. We just considered operational performance. Our next task is to consider financial performance standards for charter schools.

19. Financial Performance Standards The charter school law requires that the authorizer be given ongoing access to the records and facilities of the charter school to ensure legal compliance

20. Financial Performance Standards When making renewal decisions, SDP currently considers the following items to assess the financial health of a school: • Enrollment Audit • Financial Review (Independent Auditor Report) • Health of Business Indicators • Current Ratio • Unrestricted days Cash • Enrollment Variance • Debt Default • Total Margin • Debt to Asset Ratio

21. Financial Performance Standards -Consider Theses Examples- Common Design Elements • Indicators, Measures, Metrics, Targets, and Ratings • Indicators include Near-term and Long-term • 6-7 Measures are used to evaluate an indicator • Standard metrics for evaluation • 3-4 rating options determine whether charter holder met the standard

22. Financial Performance Standards ROUND TABLE DISCUSSION Review the sample financial accountability standards, every group should be prepared to identify: • Advantages and disadvantages of each • If any examples have missing elements • If any examples have elements to be eliminated • Deal breakers for SDP to consider

23. Consider… • Do you prefer one set of standards over the other? • If not, are there characteristics that are stronger or weaker from either? • Do you have a recommendation for SDP’s financial performance standards?

24. Questions?

25. Session Objectives Have we… • Worked to develop standards for SDP’s oversight of charter school’s financial and operational performance through a process that is objective, transparent, and comprehensive. • Gathered stakeholder ideas and perspective while relying on a wide-range of sources to inform the development of SDP’s standards for oversight of charter school’s financial and operational performance. • Ensured that matters of financial management and compliance do not get in the way of a school’s ability to provide a high quality education to its students. 

26. Next Steps • Jen Nagourney, SDP

27. Thank You Questions? Follow-up? David Hartman, SchoolWorks dhartman@schoolworks.org