A. Amendment Request and Support Materials

APPENDIX A

AMENDMENT REQUEST AND SUPPORT

MATERIALS

1. NEW SCHOOL AMENDMENT REQUEST FORM2. AMENDMENT REQUEST DOCUMENTS3. FINANCIAL DOCUMENTATION4. FINANCIAL PERFORMANCE DASHBOARD5. FINANCIAL PERFORMANCE RESPONSE EVALUATION INSTRUMENT6. FIANCIAL PERFORMANCE RESPONSE

New School

http://online.asbcs.az.gov/forms/display/19845[11/8/2017 8:34:53 AM]

New School

Charterholder Info

Downloads

Form Fields

Attachments

Signature

View detailed info

Charter Holder

Name:Incito Schools

CTDS:07-82-10-000

Mailing Address:P.O. Box 7470Goodyear , AZ 85338

Representative

Name:Amanda Jelleson

Phone Number:000-000-0000

Download all files

Name of schoolIncito Schools-Phoenix

Grade levels to be served

K1st2nd3rd4th5th6th7th8th

First day of Operation08/01/2018

Physical Address1055 E. Hearn RoadPhoenix, AZ 85022

Physical Phone Number602-993-5780

Physical Fax Number(No response)

Mailing Address1055 E. Hearn RoadPhoenix, AZ 85022

Mailing Phone Number4802166110

Mailing Fax Number4802166110

Board Minutes

Download File — Attached are the board minutes approving the Incito Schools-Phoenix Campus submission of the New Schools Amendment request.

Occupancy Documentation

Download File — Attached is the signed copy of the Compliance Assurance and Understanding form in the case that the ASBCS requires additionaldocumentation.

Download File — Attached is the Occupancy documentation that we received from the owner of the building.Download File — Attached is the Fire Marshall Report we received from the owner of the building.

Lease agreement or proof of purchase for facility — Download File

Copy of Fingerprint Clearance Card for school site administrator — Download File

Copy of liability insurance coverage — Download File

Narrative — Download File

Additional Information

Download File — Attached is the Enrollment Matrix for Incito Schools Goodyear site.Download File — Attached is the Enrollment Matrix for Incito Schools Phoenix site.Download File — Attached is the Staffing Chart for Incito Schools Goodyear site.Download File — Attached is the Staffing Chart for Incito Schools Phoenix site.Download File — Attached is the Start Up Budget for Incito Schools Phoenix site.Download File — Attached is the Operational Budget for Incito Schools Phoenix site.Download File — Attached is the Financial Performance Response that was previously submitted via email and through the online ASBCS system.Download File — Attached is audit documentation referenced in the Financial Performance Response.Download File — Attached is audit documentation referenced in the Financial Performance Response.Download File — Attached is a copy of Incito's Lease agreement as referenced in the Financial Performance Response.Download File — Attached is the sublease with The Rock of Refuge Church as referenced in the Financial Performance Response.

Charter Representative SignatureAmanda Jelleson 11/07/2017

Incito Schools New School Amendment Request-‐Narrative Rationale Incito Schools has successfully operated a K-‐8 charter school in Goodyear, AZ and was awarded an A Label in 2014 by the Arizona Department of Education. Our Goodyear school site has met the needs of learners and families who value school choice. Incito Schools is unique in that it offers a learning environment that focuses on teaching the whole child through High Trust Psychology. This is the foundation of the school and produces leadership and character building in each and every learner. The Incito Schools Goodyear campus has produced increased enrollment each year since its opening in 2013. We also currently have waitlists for every grade level Kindergarten-‐8th Grade. The Founders and Executive Directors of Incito Schools have a heart for seeing this success continue in Phoenix, AZ. Incito Schools is requesting approval of a new K-‐8 school for the 2018-‐2019 school year that will be located at 1055 E. Hearn Road in Phoenix, AZ. This school will serve as a neighborhood school and provide academic choice for the residents in the area. As Incito Schools enters into its fifth year of successful operation, this timeline allows for new site planning and preparation during the 2017-‐2018 school year. The 2017-‐2018 school year allows focused time to market the new site, enroll learners, become more connected with the local community and hire highly effective educators and leaders. The leadership of Incito Schools has developed a program of instruction and focus on learner character development that will bring opportunities to the children of Phoenix. Recruitment, Hiring & Training Plan Incito Schools plans to utilize the current leadership of the Executive Directors to support the new proposed Phoenix campus. The 2017-‐2018 school year will be focused on recruitment and hiring of all staff members. For our 2018-‐2019 operation, Incito will hire 10 teachers (including a Physical Education and Special Education teacher) as well as 2 Instructional Assistants. Through daily opportunities for Physical Education, we have noticed a high level of mental engagement and physical well-‐being in our learners. Due to this success, we plan to continue to offer daily Physical Education for our learners. On our current Goodyear campus, we have learned that our Instructional Assistants and Special Education Teacher are an important aspect to teachers’ and learners’ success. We plan to also hire 2 Instructional Assistants and a Special Education Teacher to support these learners. As enrollment increases and sections of upper grades are created, we will hire additional educators for the 2019-‐2020 school year. We have currently had success at our Goodyear campus by using an enrollment model that focuses on slow and steady growth. Incito will hire an additional Principal and Office Manager to support the new Phoenix campus. Based on enrollment, there will be an Assistant Principal position added by 2020. This is the current leadership model that has been successful with Incito’s Goodyear school site. Incito Schools will continue to utilize our same Business Manager to support at the new school site. Incito will also continue to utilize our established Hiring Process (Figure 1) to ensure quality staff are selected and hired. We believe in ensuring our teachers and leaders are well trained and truly embody the mission and vision of Incito Schools. The Executive Directors plan to lead the training for our new leaders, educators and support staff to ensure they are well prepared and are ambassadors of the “Incito way.” We will be offering training on our school’s mission and vision, Core Knowledge, Singapore Math, Balanced Literacy High Trust Psychology and data analysis. The new Phoenix campus staff members will also have the opportunity to shadow and learn from the Goodyear staff. The following is a timeline and plan for staffing, hiring and training: September 2017-‐ ASBCS approval of New School Amendment Request for Phoenix Campus

September 2017-‐Begin recruitment efforts: • Post school principal, teacher and office manager positions on ADE and additional job boards • Connect with local county agency (MCESA) to support with teacher and instructional assistant

recruitment efforts • Connect with colleagues to inquire about possible candidates • Meet with Goodyear leadership team to discuss staff assignments and possible staff promotions • Post job openings through Incito social media • Design Harkins movie theater job advertisement

September 2017-‐January 2018-‐

• Host staff “Meet & Greets” based on applicants • Host an Incito Career Fair on site • Continue local advertisement/marketing for open positions • Select and hire School Principal

February 2018-‐April 2018-‐

• Select and hire Office Manager • Attend in state and out of state career fairs to hire additional educators • Utilize Incito’s established hiring process (Figure 1) to hire teachers and instructional assistants • New staff attends High Trust Pyschology training • New Principal shadows Goodyear Principal and Assistant Principal • New Principal attends Goodyear leadership team meetings

Figure 1: Incito Schools Hiring Process

May 2018

• Executive Directors lead Incito mission and vision training sessions • Office Manager shadows Goodyear Operations Manager • Office Manager attends Synergy training

• Office Manager attends NSLP training (as applicable) June-‐July 2018

• Executive Directors lead additional Incito mission and vision training • New staff attends High Trust training with Goodyear staff • Teachers attend Singapore Math, Core Knowledge and Balanced Literacy training • Teachers attend Galileo Assessment training

August –September 2018

• School Opens August 2018 • Executive Directors lead additional Incito mission and vision training • Teachers attend data analysis training • Teachers receive weekly professional development on early release days

October 2018-‐May 2019

• Teachers receive weekly professional development on early release days • Teachers attend outside professional development opportunities throughout the year, based on

learner and teacher needs (Conferences, Maricopa County Education Service Agency, ADE) • Teachers attend quarterly data analysis training

Target Population Incito Schools plans to serve the learners that live within a 4-‐mile radius of the proposed 85022 location. After reviewing and analyzing the schools within the neighborhood, it is noted that 69% of the learners, on average, are considered low income. In the 85032 zip code, the low-‐income rate is closer to 95%. Our marketing efforts will focus on this target population to ensure the families and children are able to attend a neighborhood school of their choice. Based on conversations with families in the area, the majority of parents shared that they would drive their child(ren) to school provided that it is less than a 15 minute drive. Incito Schools is prepared to serve a population that on average 65% of the families have an annual income of $75,000 or less per household. Table 1 shows the average income an education of the residents in the proposed area (movoto.com). Also, this population has an average of 34% of residents who have earned a High School diploma or less. We recognize that we will need to ensure we have focused conversations with families in the area to educate them about Incito Schools and the benefit of having a successful charter school in the area. Table 1: Average income and education attainment by zipcode Zip Code Avg. Income

$30,000-‐$75,000

Avg. Income Below $30,000

High School Graduate

High School or Less

85022 42% 27% 23% 9% 85023 35% 32% 24% 15% 85024 41% 17% 20% 5% 85032 42% 28% 24% 16% Movoto.com Incito School’s leadership and staff have successfully engaged with the Goodyear community over the past 4 years of operation. Based on the demographics in the city of Goodyear, 38% of the residents have earned a High School diploma or less and 57% of the families have an annual income of $75,000 or less per household. The educational attainments of the residents in both areas are similar however we recognize that we will be serving a somewhat more low-‐income population in Phoenix. We are prepared

to employ community engagement strategies that will provide a true school-‐home partnerships with families and to make sacred promises to our community to educate all children that enroll in our Phoenix campus. With our Goodyear campus enrollment, we took the time to go door to door to speak with families and share our promise of strong academic and character education. We plan to utilize this same strategy with the enrollment efforts at our Phoenix campus. Based on our demographic and academic research, 57% of the schools within an approximate 3 mile radius of the proposed targeted zip code are performing below the state average (see Table 2 below). Table 2: Low-‐income, academic performance, race/ethnicity by zip code

Zip Code School Name

Low-‐Income %

Current Level of Academic Performance (AzMERIT)

EthnicityWhite

EthnicityHispanic

EthnicityBlack

EthnicityOther

85022 Hidden Hills Elementary 45% above state average 58 28 6 8

85022 Air Libre Elementary 71%

below state average 33 51 7 9

85022 Cactus View Elementary 66%


85022 Sage Academy 63% below state average 54 23 15 8

85022 Echo Mountain Primary 77%


85022 Echo Mountain Intermediate 87%


85023 Lookout Mountain 22%

far above state average 73 17 3 7

85023 Mountain Sky Middle 54% above state average 47 41 5 7

85023 John Jacobs 72% same as state average 39 52 5 4

85023

Village Meadows Elementary 84%


85024 Eagle Ridge Elementary 52%

same as state average 51 39 4 6

85032 Campo Bello Elementary 80%


85032 Palomino Primary 94%

far below state average 3 91 4 2

85032 Palomino Intermediate 95%

far below state average 5 89 4 2

AVERAGE: 69% 37% 51% 5% 6% National Center for Education Statistics, 2016

Quality Academic Program Our proposed Phoenix campus will provide a unique program for learners that reside in the surrounding area. We believe that our purpose as educators is to influence learners to think and be responsible with respect, trust and love. It is our priority and promise to inspire and provide our learners with daily opportunities to obtain extraordinary amounts of achievement and success. The value of Incito’s educational program pivots around our integrity, competence and performance skills. Our curriculum is designed to ensure that learners have meaningful options for life and success academically, physically and socially. We use nationally recognized curricula that includes Core Knowledge, Balanced Literacy and Singapore Math. What makes Incito unique is that we focus on teaching the whole child by offering specific instruction in character development and enrichment. We offer electives and enrichment opportunities that are embedded within the school day. This ensures learners are exposed to different types of content so they may begin to develop a passion which we believe leads to their purpose. Incito Schools is able to accomplish this by having an extended school day. We also utilize High Trust Psychology to ensure all of our educators, learners and families are focused on building trust relationships. The strategies that our learners gain through this approach provide them with skills that will lead to successful partnerships, relationships, careers and opportunities. We feel that we have an opportunity to offer this unique type of educational experience and partner with the families and children of Phoenix. Our program will offer an extended school day for a total of 180 days of instruction. This is an opportunity for parents to have a school of choice in their area. Of the current 14 nearby schools (within 3 mile radius) of our proposed location, there are 3 charter schools (two of which are district operated charter schools) that serve a combination of K-‐8 grade learners. Incito would provide the choice of a unique K-‐8 charter school for these local Phoenix residents. Parents and families would have the ability to enroll their children in a school that utilizes High Trust Psychology and provides embedded enrichment during the school day. Incito Schools was recognized as an A Label school in 2014. 2016 AzMERIT results show that Incito Schools is above the state average for academic growth with low-‐income students. At Incito’s Goodyear campus the 2016 Az MERIT passing rates increased in 5th, 6th and 8th grade English Language Arts an average of almost 8%. Incito’s 2016 school-‐wide ELA passing rate equaled or exceeded 57% of the seven regional K-‐8 elementary schools: Bradley Academy (13%), Eliseo C. Felix (25%), Michael Anderson (22%) and Desert Star (35%). Incito’s 2016 ELA passing rate was third highest in grades 5 and 8 and second highest in grade 6 (comparison to 7 surrounding schools). For Math, Incito’s 2016 AzMERIT passing rates in Grades 6, 7 and 8 increased by an average of 7%. For Grade 6, Incito had the 4th highest passing rate and in Grade 7 Incito outperformed 4 of the local schools and held the second highest growth rate in the comparison group. For Grade 8 Incito had the third highest passing rate in Math in the regional K-‐8 group. In comparison, Cooper Trails grade 8 math passing rate declined by 6 percent points from 2015 to 2016 (51% to 45%, respectively). Declines in grades 3 & 4 ELA were recognized, resulting in reviews of instructional design and planning resources followed by targeted adjustments to professional practices during the 2016-‐2017 school year. This led to us hiring an additional 3rd grade teacher, which will specialize in ELAS. Distinction between trends in grades 3-‐5 and 6-‐8 lead to re-‐evaluation of curriculum resources and instructional fidelity to state standards in Mathematics in early grade levels resulting in an improved focus on understanding and implementing math standards. According to 2016 AzMERIT data, Incito Schools is currently outperforming 86% of the schools (listed and referenced in Table 2) in the proposed Phoenix area for overall ELA passing rates. Incito Schools is outperforming 30% of the schools in the proposed Phoenix area for overall Math passing rates (National

Center for Education Statistics). We have recognized as a school that we need to provide our learners with more exposure and opportunities to practice assessment questions that mirror AzMerit. We have also entered into a partnership with Curriculum Management Solutions inc (CMSi) to support our leadership team and teachers with a curriculum audit. This will allows us to analyze our curriculum alignment with our state standards. We also plan to see future success as we have partnered with a data analysis guru to ensure we are collecting and analyzing our data in order to make sound instructional decisions. With Incito’s continued focus on instructional improvement, we can have a profound impact in the Phoenix area and support with increasing academic achievement. Enrollment Incito Schools has had five years of success with enrolling learners. The enrollment on the Goodyear campus has increased each year. The figure below (Table 3) shows enrollment over the past 5 years. Table 3: Total enrollment and percent increase for Incito Schools Goodyear school site 2013/2014 School Year

2014/2015 School Year



2017/2018 School Year (current year)

187 243 288 340 405 % increase 30% increase 19% increase 29% increase 19% increase We have learned many useful strategies and approaches that we plan to utilize for our Phoenix campus. As noted in the Enrollment Matrix, we plan to enroll 182 K-‐5th grade learners for the 20 school year; 234 K-‐6th grade learners for the 2019-‐2020 school year and 286 K-‐7the grade learners for the 2020-‐2021 school year. We plan to start enrollment activities as soon as our New School Amendment Request is approved. The staff at Incito Schools is honored to be a family’s school of choice and has designed “Home Commitment Visits” to ensure that we deliver on the promise of educating any enrolled learner. This Home Commitment Visit allows staff to visit the family, in their home, and discuss Incito’s promise and ensure families understand their commitment in partnering with the school. Of the current 14 nearby schools (within 3 mile radius) of our proposed location, there are 3 charter schools (two of which are district operated charter schools) that serve a combination of K-‐8 grade learners. Incito would provide the choice of a K-‐8 charter school for these local Phoenix residents. We recognize that we will need to ensure local residents understand how charter schools operate and how they are a school of choice compared to traditional public schools. In order to meet our enrollment targets we have designed an enrollment plan to support our success. August 2017-‐September 2017

• Design and purchase local movie theater advertisement to promote enrollment • Design and implement social media campaign to include Facebook and Instagram • Create and print enrollment fliers and postcards • Meet with The Fountain Church to gain more insight on local community and how they can

partner with enrollment advertisement • Meet with local business to introduce ourselves and explain school location, purpose, philosophy • Update school website and enrollment forms • Post and announce open enrollment dates on website and social media • Contact local newspapers to run advertisement

October 2017-‐January 2018

• Host enrollment events and information sessions at school site

• Continue social media postings • Canvass local and targeted zip codes with door to door postcards • Hang fliers and distribute post cards to local businesses • Attend community events

February 2018

• Host Open Enrollment events at school site March 2018-‐May 2018

• Plan and attend family meeting sessions (any enrolled learner will receive a home visit and identified staff will explain school commitment to parents)

• Continue social media postings • Continue door to door canvasing (as needed)

Resources The new Incito Schools Phoenix site will utilize the same curriculum as our current Goodyear site. This curriculum includes Core Knowledge, Singapore Math, Balanced Literacy and High Trust Psychology. We have identified that we will need to order learner materials for the entire above listed curriculum. This will be an added cost and order for Incito Schools. We will also update our Galileo and IEP Pro user capacity/contract to ensure all staff members have access. The Fountain Church has agreed to partner with the school for the purposes of raising school supply donations to support with year 1 start up needs. The Fountain Church has also partnered with Incito Schools to support with gathering book donations for learners to have access trade books. Incito Schools will utilize current Scholastic credit to purchase additional picture books and classroom supplemental. Incito Schools also plans to apply, in October 2017, for the AZ CSP grant through the Arizona Department of Education. Our Goodyear site was approved for this grant in 2012 so we feel that we have some prior knowledge about the application process and standards. Incito Schools plan to establish a working capital loan to cover all start-‐up cots not to exceed $250,000. This loan will be paid back during the first three years of operation as noted in our Start Up and 3 Year Budget. The Fountain Church has also agreed to lease the building to Incito Schools for a reduced rate of rent from January-‐July 31. If needed, the church has agreed to delay lease payments for the month of August to support with start up costs. Salary payments will begin for administrator positions starting January 1, 2018. These positions will support with planning, marketing, teacher recruitment and hiring as well as learner enrollment. Incito also has working relationships with multiple vendors and companies who will allow a deferred payment based on our prior working relationships. One example of this partnership is with Kaiser Designs who will provide classroom furniture and allow a graduated payment plan starting in September 2018.

Enrollment Matrix

For Use in Amendment/Notification Requests only Page 1

Arizona State Board for Charter Schools Enrollment Matrix

Complete the table to provide the current and target enrollment, indicating the proposed timeline for implementing the request.

Directions*:

• In each box under the “Number of Students” columns, identify the number of students served per grade for the current and upcoming three fiscal years.

• In the “Total Enrollment” row, provide the total enrollment for each fiscal year. • Copy and paste the chart for each school operated by the Charter Holder.

School Name: Incito Schools – Phoenix Number of Students

Grade Level Current—FY18 Target—FY19 Target—FY20 Target—FY21 Kindergarten 0 26 26 26 1st 0 52 52 52 2nd 0 26 52 52 3rd 0 26 26 52 4th 0 26 26 26 5th 0 26 26 26 6th 0 0 26 26 7th 0 0 0 26 8th 0 0 0 0 9th 10th 11th 12th

Total Enrollment

0 182

234 286

*To view an example of a completed enrollment matrix, review page 10 of The Guide to Amending a Charter.

Enrollment Matrix

For Use in Amendment/Notification Requests only Page 1

Arizona State Board for Charter Schools Enrollment Matrix

Complete the table to provide the current and target enrollment, indicating the proposed timeline for implementing the request.

Directions*:

• In each box under the “Number of Students” columns, identify the number of students served per grade for the current and upcoming three fiscal years.

• In the “Total Enrollment” row, provide the total enrollment for each fiscal year. • Copy and paste the chart for each school operated by the Charter Holder.

School Name: Incito Schools -‐ Goodyear Number of Students

Grade Level Current—FY18 Target—FY19 Target—FY20 Target—FY21 Kindergarten 52 52 52 52 1st 61 62 62 62 2nd 59 60 62 62 3rd 40 60 62 62 4th 45 50 62 62 5th 50 55 55 64 6th 33 60 60 64 7th 35 45 62 64 8th 30 45 50 64 9th 10th 11th 12th

Total Enrollment

405 489 527 556

*To view an example of a completed enrollment matrix, review page 10 of The Guide to Amending a Charter.

Staffing Chart

Use for Amendment/Notification Requests only Page 1

Arizona State Board for Charter Schools Staffing Chart

Complete the table to provide the current and anticipated staffing for the school(s) operated by the Charter Holder. Include staff members needed if the request is granted.

Directions*:

• In each box under the “Number of Staff Members” columns, identify the number of staff members for each position/category for the current and upcoming three fiscal years.

• Copy and paste the chart for each school operated by the Charter Holder.

School Name: Incito Schools – Phoenix Number of Staff Members Position Current—FY18_ Anticipated—

FY19__ Anticipated—

FY20__ Anticipated—

FY21__ Administration 0 3 4 4 Teachers/Instructional Staff

Kindergarten 0 2 2 2 1st 0 2 2 2 2nd 0 1 2 2 3rd 0 1 1 2 4th 0 1 1 1 5th 0 1 1 1 6th 0 0 1 1 7th 0 0 0 1 8th 0 0 0 0 9th 10th 11th 12th Specialty Staff (Music, Art, PE, etc.)

0 1 1 1

Special Education 0 1 1 2 Paraprofessional Additional Staff List title: _Instructional Asst__

0 2 3 3

List title: ________

List title: _______________

List title: _______________

Total Number of Staff Members

0

15 19 22

*To view an example of a completed staffing chart, review page 14 of The Guide to Amending a Charter.

Staffing Chart


Leadership Staffing Chart

Complete the table below to provide current and anticipated leadership for the school(s) operated by the Charter Holder.

Directions:

• In the “Title” column, list the title of each leadership position at the school. Consider all individuals who are part of the leadership team (e.g. principal, instructional coach, lead teacher, etc.).

• In the “Current” and “Anticipated” columns, list the names of the individuals that will hold each of the leadership positions during the current and upcoming three fiscal years. If an existing staff member will not hold the position in the projected year, write “New Hire” or “TBD” (to be determined) in the box for that position.


School Name: Incito Schools – Phoenix Leadership Team

Title Current—FY18__ Anticipated—FY19 Anticipated—FY20 Anticipated—FY21 Executive Director A. Jelleson A. Jelleson A. Jelleson Executive Director A. Castillo A. Castillo A. Castillo Principal TBD TBD TBD Assistant Principal TBD TBD

Staffing Chart


Arizona State Board for Charter Schools Staffing Chart

Complete the table to provide the current and anticipated staffing for the school(s) operated by the Charter Holder. Include staff members needed if the request is granted.

Directions*:

• In each box under the “Number of Staff Members” columns, identify the number of staff members foreach position/category for the current and upcoming three fiscal years.


School Name: Incito Schools -‐ Goodyear Number of Staff Members

Position Current—FY18_ Anticipated—FY19__

Anticipated—FY20__

Anticipated—FY21__

Administration 4 4 4 4 Teachers/Instructional Staff Kindergarten 2 2 2 2 1st 2 2 2 2 2nd 2 2 2 2 3rd 2 2 2 2 4th 1 2 2 2 5th 2 2 2 2 6th 1 2 2 2 7th 1 1 2 2 8th 1 1 2 2 9th 10th 11th 12th Specialty Staff (Music, Art, PE, etc.)

1 1 2 2

Special Education 2 2 2 2 Paraprofessional Additional Staff List title: _Instructional Asst__

7 7 7 7

List title: _Food Service_______

1 1 1 1

List title: _______________ List title: _______________ Total Number of Staff

Members 29 31 34 34

*To view an example of a completed staffing chart, review page 14 of The Guide to Amending a Charter.

Staffing Chart


Leadership Staffing Chart

Complete the table below to provide current and anticipated leadership for the school(s) operated by the Charter Holder.

Directions:

• In the “Title” column, list the title of each leadership position at the school. Consider all individualswho are part of the leadership team (e.g. principal, instructional coach, lead teacher, etc.).

• In the “Current” and “Anticipated” columns, list the names of the individuals that will hold each of theleadership positions during the current and upcoming three fiscal years. If an existing staff memberwill not hold the position in the projected year, write “New Hire” or “TBD” (to be determined) in thebox for that position.


School Name: Incito Schools -‐ Goodyear Leadership Team

Title Current—FY17__ Anticipated—FY18 Anticipated—FY19 Anticipated—FY20 Executive Director A. Castillo A. Castillo A. Castillo A. CastilloExecutive Director A. Jelleson A. Jelleson A .Jelleson A. JellesonPrincipal J. Black J. Black J. Black J. BlackAssistant Principal E. Campbell E. Campbell E. Campbell E. Campbell

Operational Budget

First Year 2018-2019

Number of Students 208

Revenue

State Funding (Equalization Assistance) 1,276,155

Title Funds

Classroom Site Funds 97,276

Secured Private Donations

Secured Loans

Carryover

Total Revenue 1,373,431

Expenses # Staff Salary Total

Salaries

Director/Principal 2 65,000 130,000

Teacher - Regular Education 8 36,000 288,000

Teacher - Special Education 1 42,000 42,000

Specialty Staff -P.E. 1 36,000 36,000

Instructional Assistants 2 23,000 46,000

Office Manager 1 35,000 35,000

0

0

Other:

Employee Benefits (20%) 115,400

Travel 7,000

Purchase Services (consultants) 20,000

Purchase Services-Special Education 33,400

SAIS Software 2,500

Instructional Aids/Books/Library/Software 33,300

Instructional Supplies 20,000

Legal 3,000

Auditor 0

Operational Budget

Marketing 3,000

Other (printing; postage) 1,500

Total Instruction, Administration & Support 816,100

Operations & Maintenance

Supplies 12,807

Phone/Communications 6,000

Custodial Services 15,000

Advertising 3,000

Property/Casualty Insurance 10,000

Utilities 33,000

Rent 210,000

Fees/Permits & Dues 1,200

Transportation 5,000

Food Service 0

Accounting Services 30,180

Land & Improvements 0

Building & Improvements 93,500

Computer Equipment 25,000

Furniture & Other Equipment 34,240

Upgrades (Connectivity) 2,400

Leases/Loan Payments

Other (security, copier lease) 7,987

Total Operations & Maintenance 489,313

Total Expenditures 1,305,413

Total Revenues 1,373,431

Budget Balance (Revenues - Expenditures) 68,018

Incito Schools, Inc - PhoenixStart-up Budget - Inception to August 1, 2018

Revenue

Working Captial Loan from Incito Schools, Inc. 249,945 a

Total Revenue 249,945

Expenses # Staff Salary Total

Salaries

Director 1 52,000 52,000 b

Principal 1 32,500 32,500 b

Teacher - Regular Education 10 3,000 30,000 c

Office Manager 1 17,500 17,500 b

Employee Benefits (20%) 16,000

SAIS Software 2,500

Instructional Aids/Books/Library/Software 16,650 d

Instructional Supplies 10,000 d

Legal 3,000

Marketing 7,000

Other (printing; postage) 1,500

Professional Development

Total Instruction, Administration & Support 188,650

Operations & Maintenance

Supplies 1,000

Phone/Communications 3,000

Utilities 4,950 p

Rent 18,025 e

Fees/Permits & Dues 200

Accounting Services 4,500

Computer Equipment 12,500 d

Furniture & Other Equipment 17,120 d

Total Operations & Maintenance 61,295

Total Expenditures 249,945

Total Revenues 249,945

Budget Balance (Revenues - Expenditures) 0

a Incito Schools, Inc. will establish a working capital loan to cover all start-up costs not to

exceed $250,000. This loan will be paid back during the first three years of operation.

b Salary payments will begin February 1, 2018 through July 31, 2018.

c Contracts begin July 1, 2018 1st month's payroll will be paid prior to the first state payment

August 1, 2018.

d One half the order placed and/or paid for prior the August 1st.

e Reduce rent and building usage from January to July 31.

Audit #35038 - FY2016

http://online.asbcs.az.gov/audits/view/35038#dashboard-tab[11/8/2017 8:36:42 AM]

Audit #35038 - FY2016 - Incito Schools

Interpreting the Financial Performance Dashboard

* Negative numbers indicated by parentheses.** Target effective beginning with FY16 audits.

CTDS: 07-82-10-000 • Entity ID: 91326

Financial PerformanceIncito Schools

Fiscal Year 2015 Fiscal Year 2016

Near-Term Measures

Going Concern No Meets No MeetsUnrestricted Days Liquidity<30, but ≥15: Does Not Meet<15: Falls Far Below

32.63 Meets 46.79 Meets

Default No Meets No Meets

Sustainability Measures*

Net Income≤0: Does Not Meet

($289,787) Does Not Meet ($41,221) Does Not Meet

Fixed Charge Coverage Ratio<1.10: Does Not Meet

0.57 Does Not Meet 1.02 Does Not Meet

Cash Flow (3-Year Cumulative)Negative: Does Not Meet**

$161,767 Meets $294,636 Meets

Cash Flow Detail by FY FY 2015 FY 2014 FY 2013 FY 2016 FY 2015 FY 2014

$67,306 $94,461 — $132,869 $67,306 $94,461

Does Not Meet Board's Financial Performance Expectations

General Engagement Letters Packages Financials Findings Action Plans Notes Dashboard Operational

The following table includes the Charter Holder’s financial data and financial performance for the last three audited fiscal years. The FY 2016 audit restated the financial statements for FY 2015. Amounts from the restated financial statements have been used for the table’s FY 2015 column.

Statement of Financial Position 2016 2015 2014 2013

Cash $351,847 $218,978 $151,672 $57,211

Unrestricted Cash $347,321 $212,115 $91,250

Other Liquidity - - -

Total Assets $642,136 $504,335 $452,902

Total Liabilities $1,161,533 $982,511 $778,932Current Portion of Long-Term Debt & Capital Leases - - -

Net Assets ($519,397) ($478,176) ($326,030)

Statement of Activities 2016 2015 2014

Revenue $2,668,229 $2,150,973 $1,755,714

Expenses $2,709,450 $2,303,119 $1,855,736

Net Income ($41,221) ($152,146) ($100,022)

Change in Net Assets ($41,221) ($152,146) ($100,022)

Financial Statements or Notes 2016 2015 2014

Depreciation & Amortization Expense $53,999 $41,385 $19,739

Interest Expense - - -

Lease Expense $632,000 $577,200 $484,181

2016 2015 2014 3-yr Cumulative

Going Concern No No No N/A

Unrestricted Days Liquidity 46.79 33.62 17.95 N/A

Default No No No N/A

Net Income ($41,221) ($152,146) ($100,022) N/A

Cash Flow $132,869 $67,306 $94,461 $294,636

Fixed Charge Coverage Ratio 1.02 0.81 0.83 N/A

Financial Data

Financial Performance

Near-Term Indicators

Susta inabi l i ty Indicators

Page 1 of 2

Financial Performance Response Evaluation InstrumentCharter Holder Name: Incito Schools Charter Holder Entity ID: 91326

Required for: Expansion Request Audit Year: 2016

Arizona State Board for Charter Schools (Board) staff completed the Financial Performance Response Evaluation Instrument for the Board in its consideration of applicable requests made by the charter holder. For each measure where the charter holder did not meet the target for the most recent audited fiscal year presented in the dashboard, Appendix C of the Financial Performance Framework requires the charter holder to answer three questions: 1) why did we not meet the measure’s target in the audited fiscal year; 2) what specifically have we done to improve our performance so that it’s possible to meet the measure’s target in the next fiscal year or a subsequent fiscal year; and 3) what can we provide to support our explanations and analysis? A “Not Acceptable” evaluation means the response for that measure did not sufficiently address one or more of these questions. “Not Acceptable” answers may adversely affect the Board’s decision regarding a charter holder’s request.

Measure Reason(s) for “Not Acceptable” Rating

1a. Going Concern

Acceptable ☐

Not Acceptable ☐

Not Applicable ☒

1b. Unrestricted Days Liquidity

Acceptable ☐

Not Acceptable ☐

Not Applicable ☒

1c. Default

Acceptable ☐

Not Acceptable ☐

Not Applicable ☒

2a. Net Income

Acceptable ☒

Not Acceptable ☐

Not Applicable ☐

Page 2 of 2

Measure

Reason(s) for “Not Acceptable” Rating

2b. Cash Flow

Acceptable ☐

Not Acceptable ☐

Not Applicable ☒

2c. Fixed Charge Coverage Ratio

Acceptable ☒

Not Acceptable ☐

Not Applicable ☐

Incito Schools, Inc.

Statement of Operations

June 2017

INCOME

1 Interest on Investments 0

2 Consumable Fees , Uniforms & Field Trips 29,086

3 Athletic Fees, Contributions 0

4 Non-athletic Fees & Contributions 0

5 Tax Credit Donations 0

6 Stretch Learning 42,970

7 Other Contributions 0

8 Food Service (Net Food Cost) (4,570)

9 Grants 538,301

10 Title & Proposition 146,672

11 State Equalization 2,154,669

* 12 Lease Income 251,042

TOTAL INCOME 3,158,170

EXPENSES

13 Program Payroll, Benefits & Costs 830,856

14 Performance Pay 37,906

15 Non-program Payroll, Benefits & Costs 561,312

16 Stretch Learning Payroll & Costs 59,984

17 Special Education Payroll, Benefits & Costs 281,699

18 Food Services 36,670

19 Curriculum 15,517

20 Supplies - Program 25,568

21 Special Education Services & Supplies 65,708

22 Supplies - Non-program 62,238

23 Professional Site Development 70,399

24 Faculty Summer Study Grant 0

25 Student Activities 5,929

26 Field Trips 11,124

27 Special Events 0

28 Photo Copying & Printing 21,709

29 Utilities 71,436

30 Maintenance & Repairs 63,359

31 Insurance 27,940

32 Telephone 22,307

33 Postage 365

34 Accounting , Legal & Professional Services 54,431

35 Auditing Services 10,982

36 Publications, Dues & Subscriptions 2,020

37 Extra-Curricular - Athletics 0

38 Extra-Curricular - Non-athletics 0

Incito Schools, Inc.

Statement of Operations

June 2017

39 Stretch Learning Supplies 23,651

40 Uniforms 0

41 Computers & Software 2,043

42 Furniture & Audio/Visual 392

43 Fundraising Costs 0

44 Bank Fees & Credit Card Processing 1,826

45 Board of Directors Expense 0

46 Management Service Fees 0

47 Depreciation 34,537

TOTAL EXPENSES 2,401,906

* Lease Expense 632,027

NET INCOME 124,237

** Deferred lease Receivable (48,291)

** Accrued Lease Expense 156,389

Adjusted Net Income 232,335

* The amounts reflected in the Income & Expenses section

include Accruals for both Lease Revenue & Expense.

This is related reporting the lease and sublease on a

straight-line basis.

** The adjustment amounts to reflect the straight-line basis

are added/subtracted to reflect the net income.

Total

ASSETS

Current Assets

Bank Accounts

Operating 338,002.90

Bill Pay Checking 39,321.05

Total Bank Accounts 377,323.95$

Due From State 8,935.90$

Due REIL TNG 160,493.22$

Prepaids & Deposits 11,993.00-$

Total Current Assets 534,760.07$

Fixed Assets

Furniture and Equipment 183,861.86

Less: Accum. Depr. -151,983.00

Total Fixed Assets 31,878.86$

Other Assets

Deferred Lease Receivable 223,829.70

Total Other Assets 223,829.70$

TOTAL ASSETS 790,468.63$

LIABILITIES AND EQUITY

Liabilities

Current Liabilities

Accounts Payable 21,226.72

Other Current Liabilities

Payroll Clearing 46,570.33

Retirement Funds Held 66,224.65

Deferred Compensation 324,866.40

Accrued Lease 726,741.11

Total Other Current Liabilities 1,164,402.49$

Total Current Liabilities 1,185,629.21$

Equity

Net Assets -519,397.39

Net Income 124,236.81

Total Equity 395,160.58-$

TOTAL LIABILITIES AND EQUITY 790,468.63$

Incito Schools, Inc.Balance SheetAs of June 30, 2017

Jul '16 - Jun 17

OPERATING ACTIVITIES

Net Income 124,236.81

Adjustments to reconcile Net Income

to net cash provided by operations:

0132 · Accounts Receivable -15,775.90

0140 · Accured Receivable - State 50,359.38

0145 · Due from REIL TGN grant -160,493.22

0150 · Prepaids and Deposits 15,595.76

0201 · Accounts Payable -8,774.51

0220 · Payrolls:0221 · Accrued Payroll & related li abilities -70,615.80

0230 · Prepaid:0234 · Prepaid Consumable Fees 3,936.97

0235 · Deferred Compensation -50,000.00

Net cash provided by Operating Activities -111,530.51

INVESTING ACTIVITIES

0182 · Furniture and Equipment -5,628.02

0188 · Depreciation 34,537.00

18600 · Other Assets:18601 · Deferred Lease Receiva ble -48,290.70

Net cash provided by Investing Activities -19,381.72

FINANCING ACTIVITIES

0296 · Accrued Lease Expense 156,389.11

Net cash provided by Financing Activities 156,389.11

Net cash increase for period 25,476.88

Cash at beginning of period 351,847.07

Cash at end of period 377,323.95

Incito Schools, Inc.Statement of Cash Flows

July 2016 through June 2017

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