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10 Things Every Charter Needs to Know About Finance

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

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10 Things Every Charter Needs to Know About Finance

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  1. 10 Things Every Charter Needs to Know About Finance Charter Conference – Session 3.1 – Charter Finance Basics April 23, 2013

  2. 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

  3. 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

  4. Top 10 Things You Need to Know

  5. # 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

  6. #9 – Location of Information – Be Informed! • SCDE Website – Office of Chief Financial Officer – ed.sc.gov • Fiscal Systems • Newsletter • Payments to Districts

  7. #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

  8. EFA Categories Kindergarten1.30 Primary (1.3) 1.24 Elementary (4-8) 1.00 High School (9-12) 1.25 TMH 2.04 Speech 1.90 Homebound 2.10 EH 2.04 EMH 1.74 LD 1.74 Hearing 2.57 Visual 2.57 OH 2.04 Vocational 1.29 Autism 2.57

  9. 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

  10. #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

  11. #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

  12. #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

  13. #5 – ContState 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

  14. Base Funding – Everyone Receives Charter District Other Districts Based on audited financial reported expenditures of sponsor district Average across the state is currently is $5,818 • 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)

  15. #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

  16. #3 – Audit Requirements • Your annual audit is not an option!! • Due Dates • Who performs the audit? • Single Audit Guide

  17. #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

  18. #1 – No Data = No Money

  19. Questions?????

  20. Contact Information Mellanie Jinnette Director, Office of Finance 803-734-3605 mjinnett@ed.sc.gov

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