“Best Practices for Sound Fiscal Management”

1. 2009 Florida Charter School Conference Presented by: Joe Bruno, CPA-President, Building Hope Richard Moreno, Executive Director CSSC “Best Practices for Sound Fiscal Management” Charter School Services Corporation (CSSC), A Building Hope Affiliate

2. Building HopeGrowth, Quality, Results for Public Charter Schools “Best Practices for Sound Fiscal Management” Charter School Services Corporation A Building Hope Affiliate

3. Accounting and Finance “Best Practices for Sound Fiscal Management” Charter School Services Corporation A Building Hope Affiliate

4. Accounting and Finance • Select and implement accounting system • Preparation of annual budgets • Daily management of accounts receivables/payables, and receipts/disbursements • Preparation of periodic financial statements and submission of required reports • Managing annual audit • Presentations to Board of Directors. “Best Practices for Sound Fiscal Management” Charter School Services Corporation A Building Hope Affiliate

5. Select and implement accounting system • Determine needs based on growth plans • Outsource or In House • Quickbooks • Identify Person Responsible for Implementation • Identify ALL Costs of Accounting System • Data Safety “Best Practices for Sound Fiscal Management” Charter School Services Corporation A Building Hope Affiliate

6. Preparation of Annual Budgets FRANK AND ERNEST BOB THAVES “Best Practices for Sound Fiscal Management” Charter School Services Corporation A Building Hope Affiliate

7. Preparation of Annual Budgets • Types of Budgets • Regulatory • Planning • Short vs. Long Range Budgets • Identify Your Revenue and Cost Drivers • Variable vs. Fixed Budget Items • Formats “Best Practices for Sound Fiscal Management” Charter School Services Corporation A Building Hope Affiliate

8. Daily management of accounts receivables/payables, and receipts/disbursements • Procedure Manuals • Cash Flow Projections • Posting Entries • Red Book Accounting • Funds - fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources • Function Codes - Function classifications indicate the overall purpose or objective of an expenditure. • Object Codes - The object classification indicates the type of goods or services obtained as a result of a specific expenditure. • Web Site for Red Book “http://www.fldoe.org/fefp/redtoc.asp” “Best Practices for Sound Fiscal Management” Charter School Services Corporation A Building Hope Affiliate

9. Daily management of accounts receivables/payables, and receipts/disbursements • A fund is a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations: • Permanent Funds • General Fund • Debt Service Funds • Capital Projects Funds • Special Revenue Funds • Internal Service Funds • Fiduciary Funds • Enterprise Funds “Best Practices for Sound Fiscal Management” Charter School Services Corporation A Building Hope Affiliate

10. Daily management of accounts receivables/payables, and receipts/disbursements • Function refers to the objective or purpose of an expenditure. Functions are the activities performed to accomplish the objectives of the organization. The activities of schools are classified into four major functional categories as follows: • Instruction. The activities dealing directly with the teaching of pupils or the interaction between teacher and pupils. • Instructional Support Services. This includes administrative, technical, and logistical support to facilitate and enhance instruction. • General Support Services. Those activities associated with establishing policy, operating schools and the school system, and providing the necessary facilities and services for the staff and pupils. • Community Services. Community Services consist of those activities that are not directly related to providing education for pupils in a school system. “Best Practices for Sound Fiscal Management” Charter School Services Corporation A Building Hope Affiliate

11. Daily management of accounts receivables/payables, and receipts/disbursements • Object means the goods purchased or the service obtained. • There are eight major object categories provided in the Red Book manual: • Salaries • Employee Benefits • Purchased Services • Energy Services • Materials and Supplies • Capital Outlay • Other Expenses • Transfers “Best Practices for Sound Fiscal Management” Charter School Services Corporation A Building Hope Affiliate

13. Preparation of periodic financial statements and submission of required reports • Florida Statute Now Requires Monthly Financial Reports • Monthly Bank Reconciliations • Board Reports • Annual Financial Reports “Best Practices for Sound Fiscal Management” Charter School Services Corporation A Building Hope Affiliate

14. Managing annual audit • Good system of internal controls • Segregation of duties • Checks and Balances • Properly Coding of Revenues and Expenditures • Account Analysis • Prepare and close Financial Reports • Maintaining Fixed Asset Schedules • Early preparation of the Management’s Discussion and Analysis (MD&A) • Maintaining all contracts in easily accessible manner “Best Practices for Sound Fiscal Management” Charter School Services Corporation A Building Hope Affiliate

15. Presentations to Board of Directors. • Present financials in a format that is easily understandable • Present all statements submitted to School District officials • Review actual vs. budget • Discuss any material budget variances “Best Practices for Sound Fiscal Management” Charter School Services Corporation A Building Hope Affiliate

16. Building HopeMission: To close the achievement gap by providing student access to high quality charter school facilities through the provision of the following services: • Technical Assistance • Assisted over 100 charter schools with business planning, real estate, and finance • Speakers at national conferences and U.S. Department of Education programs • Led ground-breaking conversion of 7 Catholic schools to charter schools • Provide grants for feasibility studies • Support/manage charter school applications for surplus DC school facilities • Project management to build or renovate facilities • Financing (Loans and CE’s) • $42 million in total lending since 2003 • Over $17 million in guarantees • Supporting $310 million in facility costs • Supporting over 18,500+ seats • 50+ transactions • CS Business Services • Provide accounting and I.T. services to over 25 charter school campuses • Prepared eRate applications for over 50 schools • HR Management • Property Management • Incubator Initiative • Partnership with DC Gov’t • Established 5 incubators for 6 charter schools • Leased and renovated over 110,000 sq ft creating seats for approximately 1,000 students. * As a % of staff time

17. Building Hope Funding to Date “Best Practices for Sound Fiscal Management” Charter School Services Corporation A Building Hope Affiliate

18. Geographic Focus Historical Projected “Best Practices for Sound Fiscal Management” Charter School Services Corporation A Building Hope Affiliate

19. Joe Bruno, CPA-President, Building Hope 202-457-1993 – email “joebruno456@aol.com” Richard Moreno, Executive Director, CSSC 954-767-1070 – email “Rmoreno@charterschoolcorp.com” “Best Practices for Sound Fiscal Management” Charter School Services Corporation (CSSC) A Building Hope Affiliate