PDE-414 Complete the following information for all professional staff members . Staff No. Name of employee (List all names in alphabetical order) PA Certified Yes/No Areas of Certification Type of Certificate Grades Teaching or Serving All Areas of Assigjment Subject Areas Teaching or Services Provided Number of Hours Worked in Assignmnt Percentage of Time in Certified Position Percentage of Time in Areas Not Certified 1 BLEILER, STEPHEN Yes Instructional I Grades PK-4 (2825) 3,4 Elementary Teacher 1327.5 100% 0% 2 BREILING, CHARLES Yes Instructional II Mathematics 7-12 (6800);Instructional II General Science 7-12 (8450) 9-12 Math Teacher 1327.5 100% 0% 3 CASSERO, ANTHONY Yes Instructional I English 7-12 9-12 SPED Teacher 1327.5 100% 0% 4 CASTRO-GARCIA, MARIANGELI Yes Instructional I Spanish PK-12 (4490) 7-12 Spanish Teacher 1327.5 100% 0% 5 FERNANDEZ, RITA Yes Educational Specialist II School Nurse PK-12 (1890) K-12 School Nurse 1327.5 100% 0% 6 FULCHER, NICOLE Yes Elementary K-6; SPED PK-12; Autism Endorsement PK - 12 K-12 SPED Teacher 1327.5 100% 0% 7 GONZALEZ-KIRWIN, ANDREA Yes Letter of Eligibility Superintendent PK- 12 (1150), Administrative II Elementary Principal K-6 (1100), Instructional II Early Childhood N-3 (2840), Instructional II Elementary K-6 (2810) K-12 Superintendent (CEO) 1327.5 100% 0% 8 GOSHERT,STEPHANIE Yes Instructional I English 7-12 (3230) K-12 Director of Instruction 1327.5 100% 0% 9 HALL, NATHAN Yes Instructional I Communications 7-12 (3200);Instructional I Social Studies 7- 12 (8875);Instructional I English 7-12 (3230);Program Specialist English as a Second Language (ESL) PK-12 (4499);Instructional I Citizenship 7-12 (8825) K-12 ELL Teacher 1327.5 100% 0% 10 HERRERA, VANESSA Yes Educational Specialist I Elementary & Secondary School Counselor PK-12 (1839) K-12 School Counselor 1142.25 100% 0% 11 JOHNSON-HARRIS, TASHA Yes Instructional II Elementary K-6 (2810), Instructional II Early Childhood N-3 (2840), Instructional II Biology 7-12 (8405) 7-12 Biology Teacher 1327.5 100% 0% 12 KAHANA, CHELSEA No Emergency Permit: LT Sub with Educational Obligation 7-8 SPED Teacher 1327.5 0% 100% 13 KING, DEBORAH Yes Instructional II English 7-12 (3230), Instructional II Special Education PK- 12 (9225), Program Specialist English as a Second Language (ESL) PK-12 (4499), Instructional II Reading Specialist PK-12 (7650), Instructional II Elementary K-6 (2810), Instructional II Early Childhood N-3 (2840) K-12 SPED Teacher 1327.5 100% 0% 14 KOHL, BRYAN Yes Instructional II Elementary K-6 (2810), Instructional II Mid-Level Mathematics 6-9 (2860) 8-10 Math Teacher 1327.5 100% 0% 15 KOWALCHUK, PAUL Yes Instructional I English 7-12 (3230) 11-12 English Teacher 1327.5 100% 0% 16 MCKINLEY, KATHRYN Yes Educational Specialist II School Psychologist PK-12 (1875) K-12 Senior Director of Special Education and Specialized Services 1327.5 100% 0% 17 MEDINA, ERIKA Yes Instructional I Elementary K-6 (2810) K-6 Senior Lead Educator 1327.5 100% 0% 18 MEYER, TRAVIS Yes Instructional I English 7-12 (3230), Instructional I Social Studies 7-12 (8875) 9-12 History/Psychology Teacher 1327.5 100% 0% 19 PAVESE, HEATHER No Emergency Permit: LT Sub with Educational Obligation 6-7 Special Education Teacher 1327.5 0% 100% 20 PENA, MELANIE Yes Instructional II Spanish PK-12 (4490), Instructional II Elementary K-6 (2810) 1-7 Spanish Literacy Teacher 1327.5 100% 0% 21 ROJAS, LISABETH Yes Instructional II Elementary K-6 (2810), Instructional II Early Childhood N-3 (2840) K-2 Elementary Teacher 1327.5 100% 0% 22 RUIZ, NANCY Yes Administrative I Principal PK-12 (1115) K-12 Principal 1327.5 100% 0% 23 RUTH, JAIME A Yes Instructional I Elementary K-6 (2810) 5-6 Elementary Teacher 1327.5 100% 0% 24 SCHOFIELD, ALBERT Yes Educational Specialist I School Psychologist PK-12 (1875) K-12 School Psychologist 1327.5 100% 0% 25 SHORT, PAMELA Yes Instructional II General Science 7-12 (8450), Instructional II Mid-Level 7-8, 10-12 Science Teacher 1327.5 100% 0% CERTIFICATION VERIFICATION FORM
Transcript
PDE-414
Complete the following information for all professional staff members.
Staff No.
Name of employee (List all names in alphabetical order)
PA Certified Yes/No
Areas of Certification Type of Certificate
Grades Teaching or
Serving
All Areas of Assigjment Subject Areas Teaching or Services Provided
Number of Hours
Worked in Assignmnt
Percentage of Time in Certified Position
Percentage of Time in Areas Not Certified
1 BLEILER, STEPHEN Yes Instructional I Grades PK-4 (2825) 3,4 Elementary Teacher 1327.5 100% 0%
2 BREILING, CHARLES YesInstructional II Mathematics 7-12
(6800);Instructional II General Science 7-12 (8450)
9-12 Math Teacher1327.5 100% 0%
3 CASSERO, ANTHONY Yes Instructional I English 7-12 9-12 SPED Teacher 1327.5 100% 0%
Letter of Eligibility Superintendent PK-12 (1150), Administrative II
Elementary Principal K-6 (1100), Instructional II Early Childhood N-3
(2840), Instructional II Elementary K-6 (2810)
K-12 Superintendent (CEO)
1327.5 100% 0%8 GOSHERT,STEPHANIE Yes Instructional I English 7-12 (3230) K-12 Director of Instruction 1327.5 100% 0%
9 HALL, NATHAN Yes
Instructional I Communications 7-12 (3200);Instructional I Social Studies 7-12 (8875);Instructional I English 7-12 (3230);Program Specialist English as a
Second Language (ESL) PK-12 (4499);Instructional I Citizenship 7-12
(8825)
K-12 ELL Teacher
1327.5 100% 0%
10 HERRERA, VANESSAYes
Educational Specialist I Elementary & Secondary School Counselor PK-12
(1839)K-12 School Counselor
1142.25 100% 0%
11 JOHNSON-HARRIS, TASHA
Yes
Instructional II Elementary K-6 (2810), Instructional II Early Childhood N-3 (2840), Instructional II Biology 7-12
(8405)
7-12 Biology Teacher
1327.5 100% 0%
12 KAHANA, CHELSEA NoEmergency Permit: LT Sub with
Instructional II English 7-12 (3230), Instructional II Special Education PK-12 (9225), Program Specialist English
as a Second Language (ESL) PK-12 (4499), Instructional II Reading
Specialist PK-12 (7650), Instructional II Elementary K-6 (2810), Instructional
II Early Childhood N-3 (2840)
K-12 SPED Teacher
1327.5 100% 0%
14 KOHL, BRYAN YesInstructional II Elementary K-6 (2810), Instructional II Mid-Level Mathematics
6-9 (2860)8-10 Math Teacher
1327.5 100% 0%15 KOWALCHUK, PAUL Yes Instructional I English 7-12 (3230) 11-12 English Teacher 1327.5 100% 0%
16 MCKINLEY, KATHRYN Yes Educational Specialist II School Psychologist PK-12 (1875) K-12
Senior Director of Special Education and Specialized Services 1327.5 100% 0%
17 MEDINA, ERIKA Yes Instructional I Elementary K-6 (2810) K-6 Senior Lead Educator 1327.5 100% 0%
18 MEYER, TRAVIS YesInstructional I English 7-12 (3230), Instructional I Social Studies 7-12
(8875)9-12 History/Psychology
Teacher1327.5 100% 0%
19 PAVESE, HEATHER No Emergency Permit: LT Sub with Educational Obligation 6-7 Special Education
Teacher 1327.5 0% 100%
20 PENA, MELANIE Yes Instructional II Spanish PK-12 (4490), Instructional II Elementary K-6 (2810) 1-7 Spanish Literacy
Teacher 1327.5 100% 0%
21 ROJAS, LISABETH Yes Instructional II Elementary K-6
(2810), Instructional II Early Childhood N-3 (2840)
K-2 Elementary Teacher1327.5 100% 0%
22 RUIZ, NANCY Yes Administrative I Principal PK-12 (1115) K-12 Principal
1327.5 100% 0%23 RUTH, JAIME A Yes Instructional I Elementary K-6 (2810) 5-6 Elementary Teacher 1327.5 100% 0%
24 SCHOFIELD, ALBERT Yes Educational Specialist I School Psychologist PK-12 (1875) K-12 School Psychologist
1327.5 100% 0%
25 SHORT, PAMELA Yes Instructional II General Science 7-12 (8450), Instructional II Mid-Level 7-8, 10-12 Science Teacher 1327.5 100% 0%
CERTIFICATION VERIFICATION FORM
26 SINCLAIR, MEGANYes Instructional I Special Education PK-
12 (9225), Instructional I Elementary K-6 (2810)
K-6 SPED Teacher1327.5 100% 0%
27 SMITH, AMANDA Yes Instructional I English 7-12 (3230), Instructional I Spanish PK-12 (4490) 9-12 English Teacher
1475.5 100% 0%
28STRUNK, DAVID
Yes Instructional I Social Studies 7-12 (8875), Instructional I English 7-12 (3230)
7-12 Platform Specialist / Senior Lead Educator 1327.5 100% 0%
29 WALSH, LISA YesInstructional II Elementary K-6 (2810);Program Specialist English as a Second Language (ESL) PK-12 (4499)
K-12 EL Coordinator
1327.5 100% 0%
30 WEIRICH, NICOLE Yes
Instructional I Mid-Level English 6-9 (2850);Instructional I English 7-12
(3230);Instructional I Special Education PK-12 (9225)
K-12 Special Education Coordinator
1124.5 100% 0%
31 WOLCOTT, RYAN Yes Instructional I Social Studies 7-12 (8875) 9-12 Social Studies Teacher
1327.5 100% 0%
Total Number of Administrators (do not include CEO) ___7____Total Number of Teachers ___20_______ Counselors ___1_______ School Nurses _____1_____ Others ____2______Total Number of Professional Staff ____31_____
PA Department of Education, 333 Market Street, Harrisburg, PA 17126-0333
Note-Expenditures may be submitted EITHER as accrual or cash basis EXPENDITURES
1200 SPECIAL PROGRAMS - ELEMENTARY / SECONDARY $ 1,413,787.34
1300 VOCATIONAL EDUCATION $ -
1400 OTHER INSTRUCTIONAL PROGRAMS - ELEMENTARY / SECONDARY
$ 166,239.78
1600 ADULT EDUCATION PROGRAMS $ -
1700 HIGHER EDUCATION PROGRAMS $ -
1800 PRE-KINDERGARTEN $ -
2000 SUPPORT SERVICES $ - 2100 SUPPORT SERVICES - PUPIL PERSONNEL $ 263,528.69
2110 Supervision of Pupil Personnel Services $ - 2120 Guidance Services $ - 2130 Attendance Services $ - 2140 Psychological Services $ - 2150 Speech Pathology and Audiology Services $ - 2160 Social Work Services $ - 2170 Student Accounting Services $ - 2190 Other Pupil Personnel Services $ -
2200 SUPPORT SERVICES - INSTRUCTIONAL STAFF $ - 2210 Supervision of Educational Media Services $ - 2220 Technology Support Services $ - 2230 Educational Television Services $ - 2240 Computer-Assisted Instruction Support Services $ - 2250 School Library Services $ - 2260 Instruction and Curriculum Development Services $ - 2270 Instructional Staff Professional Development Services $ 2,424.42 2280 Nonpublic Support Services $ -
2300 SUPPORT SERVICES - ADMINISTRATION $ - 2310 Board Services $ - 2320 Board Treasurer Services $ - 2340 Staff Relations and Negotiations Services $ - 2350 Legal Services $ - 2360 Office of the Superintendent (Executive Director) Services $ 41,895.72 2370 Community Relations Services $ 21,350.09 2380 Office of the Principal Services $ 544,757.04 2390 Other Administration Services
2400 SUPPORT SERVICES - PUPIL HEALTH $ 20,269.68
2500 SUPPORT SERVICES - BUSINESS $ - 2510 Fiscal Services $ 119,386.69 2520 Purchasing Services $ - 2530 Warehousing and Distributing Services $ - 2540 Printing, Publishing and Duplicating Services $ - 2590 Other Support Services - Business $ -
2600 OPERATION AND MAINTENANCE OF PLANT SERVICES $ - 2610 Supervision of Operation and Maintenance of Plant Services $ 1,578.26 2620 Operation of Buildings Services $ 432,010.30 2630 Care and Upkeep of Grounds Services $ - 2640 Care and Upkeep of Equipment Services $ - 2650 Vehicle Operations and Maintenance Services (Other than Student
Transportation Vehicles) $ -
2660 Security Services $ 86,800.33 2690 Other Operation and Maintenance of Plant Services $ -
2800 SUPPORT SERVICES - CENTRAL $ - 2810 Planning, Research, Development and Evaluation Services2820 Information Services $ 99,848.37 2830 Staff Services $ 88,167.84 2840 Data Processing Services $ - 2850 State and Federal Agency Liaison Services $ - 2860 Management Services $ - 2890 Other Support Services Central $ -
2900 OTHER SUPPORT SERVICES - CENTRAL $ - 2990 Pass-Thru Funds $ -
3200 STUDENT ACTIVITIES $ - 3210 School Sponsored Student Activities $ 25,011.43 3250 School Sponsored Athletics $ 3,792.73
3300 COMMUNITY SERVICES $ - 3310 Community Recreation $ - 3320 Civic Services $ - 3330 Public Library Services $ - 3340 Custody and Child Care $ 54.06 3350 Welfare Activities $ - 3390 Other Community Services $ -
3400 SCHOLARSHIPS AND AWARDS $ -
4000 FACILITIES ACQUISITION, CONSTRUCTION AND IMPROVEMENT SERVICES
$ 63.80
4100 SITE ACQUISITION SERVICES - ORIGINAL AND ADDITIONAL $ -
4200 EXISTING SITE IMPROVEMENT SERVICES $ -
4300 ARCHITECTURE AND ENGINEERING SERVICES / EDUCATIONAL SPEICIFICATIONS DEVELOPMENT - ORIGINAL AND ADDITIONAL
$ -
4400 ARCHITECTURE AND ENGINEERING SERVICES / EDUCATIONAL SPECIFICATIONS - IMPROVEMENTS
$ -
4500 BUILDING ACQUISITION AND CONSTRUCTION SERVICES - ORIGINAL AND ADDITIONAL
$ -
4600 EXISTING BUILDING IMPROVEMENT SERVICES $ -
5000 OTHER EXPENDITURES AND FINANCING USES $ - 5100 DEBT SERVICE / OTHER EXPENDITURES AND FINANCING USES $ -
5200 FUND TRANSFERS $ -
5300 TRANSFERS INVOLVING COMPONENT UNITS $ -
5400 INTRAFUND TRANSFERS OUT $ -
5800 SUSPENSE ACCOUNT $ -
5900 BUDGETARY RESERVE $ -
$ 5,281,830.68
TOTAL REVENUES MINUS TOTAL EXPENDITURES = CURRENT FUND 358,886.55$ BALANCE AS OF JUNE 30, 2018 352,984.55$
TOTAL EXPENDITURES
Charter School Annual Report - Expenditures 2
### REVENUE FROM LOCAL SOURCES $ -
### EARNINGS ON INVESTMENTS $ - 6510 Interest on Investments and Interest-Bearing Checking Accounts $ - 6520 Dividends on Investments $ - 6530 Gains or Losses on Sale of Investments $ - 6540 Earnings on Investments in Real Property $ - 6590 Other Earnings or Investments $ -
### FOOD SERVICE REVENUE $ - 6610 Daily Sales - Reimbursable Programs $ - 6620 Daily Sales - Non-Reimbursable Programs $ - 6630 Special Functions $ - 6640 Non-Cash Contributions $ - 6650 Price Reduction for Reduced Price and Free Meals (Debit) $ - 6690 Other Food Service Revenues $ -
### REVENUES FROM STUDENT ACTIVITIES $ 5,830.00 6710 Admissions $ - 6720 Bookstore Sales $ - 6730 Student Organization Membership Dues and Fees $ - 6740 Fees $ - 6750 Student Activity - Special Events $ - 6790 Other Student Activity Income $ -
### REVENUES FROM INTERMEDIARY SOURCES / PASS THROUGH $ - 6810 Revenue from Local Governmental Units $ - 6820 Revenue from Intermediary Sources - Commonwealth Funds $ - 6830 Revenues from Intermediary Sources - Federal Funds $ - 6890 Other Revenues from Intermediary Sources $ -
### OTHER REVENUE FROM LOCAL SOURCES $ - 6910 Rentals $ - 6920 Contributions & Donations from Private Sources / Capital Contributions $ 4.24
6930 Gains or Losses on Sale of Fixed Assets (Economic Resource Measurement Focus Only)
$ -
6940 Tuition from Patrons $ - ### Regular Day School Tuition $ - ### Summer School Tuition $ - ### Adult Education Tuition $ - ### Receipts From Other LEAs in Pennsylvania - Education $ 4,921,753.05 ### Receipts from Out-of-State LEAs### Receipts from Member Districts - AVTS / Special Program Jointure only $ - ### Receipts from Members of Intermediate Units for Education by $ - ### Receipts from Members of Intermediate Units for Direct Contributions $ - ### Other Tuition from Patrons $ -
6950 Unassigned $ - 6960 Services Provide Other Local Governmental Units / LEAs $ -
### Transportation Services Provided Other Pennsylvania LEAs $ - ### All Other Services Provided Other Governments and LEAs Not Specified
Above $ -
6970 Services Provided Other Funds $ - 6980 Revenue from Community Service Activities $ - 6990 Refunds and Other Miscellaneous Revenue $ 8,163.54
### Refunds of a Prior Year Expenditure### Other Revenues Not Specified Above
### REVENUE FROM STATE SOURCES### BASIC INSTRUCTIONAL AND OPERATING SUBSIDIES
7150 Unassigned7160 Tuition for Orphans and Children Placed in Private Homes7180 Staff and Program Development
as of June 30, 2017
Preliminary Statement of Revenues, Expenditures & Fund BalancesInclude ALL Funds
CEO Signature ______________________________________________
Name of School __ASPIRA Bilingual Cyber Charter School ____________________________________________________________________________
Address of School __4322 N. 5th St., 2nd Fl. Philadelphia, PA 19140_____________________________________________________________________
REVENUES
Charter School Annual Report - Revenues 3
### REVENUE FOR SPECIFIC EDUCATIONAL PROGRAMS7210 Homebound Instruction7220 Vocational Education7230 Alternative Education7240 Driver Education - Student7250 Migratory Children7260 Workforce Investment Act (WIA)7270 Specialized Education of Exceptional Pupils7280 Adult Literacy7290 Additional Educational Program Revenues
### REVENUES FOR NON-EDUCATIONAL PROGRAMS7310 Transportation (Regular and Additional)7320 Rental and Sinking Fund Payments / Building Reimbursement Subsidy7330 Health Services (Medical, Dental, Nurse, Act 25)7340 Unassigned7350 Sewage Treatment Operations / Environmental Subsidies7360 Safe Schools
### VOCATIONAL TRAINING OF THE UNEMPLOYED
### STATE REVENUE NOT LISTED ELSEWHERE IN THE 7000 SERIES OF ACCOUNTS
### Dual Enrollment Grants### Project 720/High School Reform### Other State Revenue Not Listed Elsewhere in the 7000 Series
### REVENUE FOR MILK, LUNCH AND BREAKFAST PROGRAMS
### REVENUE FOR THE COMMONWEALTH'S SHARE OF PAID BENEFITS7810 State Share of Social Security and Medicare Taxes7820 State Share of Retirement Contributions
### REVENUE FOR TECHNOLOGY7910 Educational Technology7990 Other Technology Grants
### REVENUE FROM FEDERAL SOURCES### UNRESTRICTED GRANTS-IN-AID DIRECT FROM THE FEDERAL
GOVERNMENT8110 Payments for Federally Impacted Areas - P.L. 81-8748190 Other Unrestricted Federal Grants-in-Aid Direct from the Federal
Government
### UNRESTRICTED GRANTS-IN-AID FROM THE FEDERAL GOVERNMENT THROUGH THE COMMONWEALTH
### RESTRICTED GRANTS-IN-AID DIRECTLY FROM THE FEDERAL GOVERNMENT
8310 Payments for Federally Impacted Areas - P.L. 81-8158320 Energy Conservation Grants - TA and ECM8390 Other Restricted Federal Grants-in-Aid Directly from the Federal
Government
### RESTRICTED GRANTS-IN-AID FROM THE FEDERAL GOVERNMENT THROUGH THE COMMONWEALTH FOR THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT (IDEA), NO CHILD LEFT BEHIND (NCLB), VOCATIONAL EDUCATION, CHILD NUTRITION AND CAREER EDUCATION PROGRAMS
8510 Individuals with Disabilities Education Act (IDEA) and No Child Left Behind (NCLB)
$ 704,966.40
8520 Vocational Education8530 Child Nutrition Program8540 Nutrition Education and Training8560 Federal Block Grants8570 Unassigned8580 Child Care and Development Block Grants8590 Unassigned
### RESTRICTED GRANTS-IN-AID FROM THE FEDERAL GOVERNMENT THROUGH THE COMMONWEALTH FOR DRIVER EDUCATION, ADULT EDUCATION, CETA, HEADSTART, ENERGY CONSERVATION, WORKFORCE INVESTMENT ACT AND OTHER PROGRAMS
8650 Unassigned8660 Workforce Investment Act (WIA)8670 Unassigned8680 Unassigned8690 Other Restricted Federal Grants-in-Aid through the Commonwealth
### MEDICAL ASSISTANCE REIMBURSEMENTS
### OTHER FINANCING SOURCES### SALE OF BONDS
9110 Bond Issue Proceeds (Gross)9120 Proceeds from Refunding of Bonds
### PROCEEDS FROM EXTENDED TERM FINANCING
### INTERFUND TRANSFERS9310 General Fund Transfers9320 Special Revenue Fund Transfers9330 Capital Projects Funds Transfers9340 Debt Service Fund Transfers9350 Enterprise Fund Transfers9360 Internal Service Fund Transfers9370 Trust and Agency Fund9380 Activity Fund Transfers9390 Permanent Fund Transfers
### SALE OF OR COMPENSATION FOR LOSS OF FIXED ASSETS
### Unassigned
### Unassigned
### TRANSFERS INVOLVING COMPONENT UNITS AND PRIMARY GOVERNMENTS
9710 Transfers from Component Units9720 Transfers from Primary Governments
### INTRAFUND TRANSFERS IN9810 General Fund Intrafund Transfers9820 Special Revenue Intrafund Transfers9840 Debt Service Intrafund Transfers9850 Enterprise Intrafund Transfers9860 Internal Service Intrafund Transfers9870 Trust and Agency Intrafund Transfers9880 Activity Interfund Transfers
$ 5,640,717.23 TOTAL REVENUES
Charter School Annual Report - Revenues 5
ASPIRA, INC. OF PENNSYLVANIA ANTONIA PANTOJA CHARTER SCHOOL
EUGENIO MARIA DE HOSTOS CHARTER SCHOOL PEQ`UENOS PASO DE ASPIRA
ASPIRA BILINGUAL CYBER CHARTER SCHOOL JOHN B. STETSON CHARTER SCHOLL
OLNEY CHARTER HIGH SCHOOL
Amended/Approved 1/2018
FINANCIAL POLICY MANUAL
This internal control manual provides policies and procedures for handling financial transactions. Responsible parties are identified and the segregation of duties among these parties is outlined. This
manual is a resource to ensure compliance with state and federal laws, as well as a tool to help produce timely and accurate financial information.
1.2 Contracts ................................................................................................................................ 4 1.3 Accounting of Procurement workflow ...................................................................................... 5 1.4 Purchasing .............................................................................................................................. 5 1.5 Payment approval ................................................................................................................... 5 1.6 Transactions with related parties ............................................................................................ 7
2 Position requisition through Position Control Process (PCR) ......................................................... 7 3 Expenses and Employee Reimbursement ..................................................................................... 8
3.1 Expenses relating to staff recruitment ..................................................................................... 8 3.2 Expenses relating to staff travel .............................................................................................. 8 3.3 Other non-staff expenses ....................................................................................................... 8 3.4 Expenses of the CEO and Superintendent ............................................................................. 8
3.4.1 The CEO and Superintendent will submit Expense Reimbursement forms with original receipts to the Treasurer of the Board of Trustees, who will review and approve expenses before reimbursement is processed. ......................................................................................................... 8
4 Banking and Cash Management .................................................................................................... 9
4.1 Bank Account Structure .......................................................................................................... 9 4.2 Purchases, Accounts Payable, and Cash Disbursements ...................................................... 9 4.3 Cash Collection..................................................................................................................... 10 4.4 Deposits ................................................................................................................................ 10 4.5 Other Banking Functions ...................................................................................................... 10
6.1 Working Capital .................................................................................................................... 11 6.2 Term Debt ............................................................................................................................. 12 6.3 Considerations ...................................................................................................................... 12
7 Grants and Donations received ................................................................................................... 12
1.1.1 Expense approval is established in the requisitioning process in the Intacct accounting system.
1.1.2 All purchases including contractual agreements, personal purchase & reimbursement and school card purchases require a purchase order approved by the individuals noted below:
Values of … Requisition
Level Require purchase orders approved by...
Under $5,000 (within approved budget)
School Requisition
The following: School Principal
Over $5,000 (within approved budget)
School Requisition
Two of the following: School Principal, President of the Board of Trustees
$0 - $50,000 (not in approved budget)
School Requisition
One of the following: School Principal, Superintendent AND President of the Board of Trustees
Over $50,000 (not in approved budget)
School Requisition
All of the following: School Principal, and Board of Trustees
Under $5,000 (within approved budget)
ASPIRA Requisition
One of the following: Department head, COO, Superintendent, and CEO
$5,000- above (within approved budget)
ASPIRA Requisition
Two of the following Department head, COO, Superintendent, CEO, and President of the Board of Trustees
$0 - $50,000 (not in approved budget)
ASPIRA Requisition
Both of the following: School Principal, COO AND one of the following: CEO, President of the Board of Trustees
Over $50,000 (not in approved budget)
ASPIRA Requisition
All of the following: COO, CEO, Board of Trustees
1.1.3 Exceptions to workflow process are as followed: utilities, insurances, contractual debt services, and employee benefits vendor payments
1.2 Contracts
1.2.1 Description of terms
1.2.1.1 Where possible, the school will enter into contracts for goods and services that stipulate exactly what is included and excluded from the scope of the contract, the agreed delivery, payment terms, and other standard contractual terms and legal protections.
1.2.1.2 Contracts should provide for monthly payment, with at least 30 days from the date of invoice for vendors and at least 20 days from the invoice date for Contractors, to make payment when possible
1.2.2 Contracts can be negotiated by the following individuals or their designees: President of the Board of Trustees, CEO, Superintendent, COO, School Principal
5
1.2.3 Services from individuals
1.2.3.1 If contracting with an individual for services that are likely to exceed the IRS threshold (currently $600 per year
1), the school will obtain required documentation to complete
a 1099 tax return at the time the services are agreed upon, including the individual’s completed W-9 with social security number, address and other contact information. This documentation should be completed along with a New Vendor Request form and sent to the Finance department for processing.
1.2.4 Approval
1.2.4.1 Prior to signing a contract commitment to purchase any goods / services, an Intacct Requisition Request Form must be submitted to approve the expenditure through the purchase order workflow process outlined in 1.1 section of this manual.
1.2.4.2 The School Principal executes the contracts and agreements for the school where the Principal is employed.
1.3 Accounting of Procurement workflow
1.3.1 The Controller must approve new vendor and program accounts. Submissions for new vendors and programs must be submitted to the Finance Department prior to beginning the purchase order workflow process.
1.3.2 Account documentation should identify the approved purchase order number on invoices for goods/services and payment terms, with at least 30 days from the date of invoice to make payment. All documentation should be attached and/or uploaded to all purchase order transactions.
1.4 Purchasing
1.4.1 The Purchasing Coordinator will make a purchase upon the approval of the requisition.
1.4.2 Lead Administrators or requisition submitter will match materials and supplies when they are received and will inspect them for condition, ensuring that the goods received match the Purchase Order.
1.4.3 Lead Administrators or requisition submitter will notify the Purchase Coordinator any shortages or rejections during the receipt of the goods or services.
1.4.4 The employee who approves the purchase may not receive the goods or service of such purchase.
1.5 Payment approval
1.5.1 Invoice collection & payment
1.5.1.1 All unpaid invoices must be directed to the Finance department. Copies of such invoices should be submitted referencing the approved purchase order number for invoices.
1.5.1.2 Any invoices not referencing an approved Purchase Order will not be paid.
1.5.1.3 The Purchasing Coordinator will convert approved Purchase Requisitions to Purchase Orders. The Accounts Payable staff in the Finance department will convert the purchase order to Commitment and follow through the accounting process to obtain appropriate payment approval for vendor invoices.
1 http://www.irs.gov/pub/irs-pdf/i1099gi.pdf
6
1.5.2 Immediate / upfront payment
1.5.2.1 Before issuing the payments requiring immediate or upfront payment, an approved purchase order is required. After obtaining the approved purchase order, the requestor will follow up with the Accounts Payable staff to request immediate or upfront payment. The Controller will review and make the determination to pay on a case-by-case basis.
1.5.2.2 The Lead Administrator or Director of Operations or other designee of the principal must ensure that goods received upon payment match the approved Purchase Order. Any changes made to a purchase order after the conversion should provide documentation and begin a new workflow for changes.
1.5.3 School card purchases
1.5.3.1 While not the preferred method of purchasing, schools do have this option.
1.5.3.2 The school cards shall have a purchasing limit of $5,000 per month, with the exception of those that include additional approval for purchases in excess of $5000.00 from the Superintendent, and the Board of Trustee.
1.5.3.3 All Purchases must be approved in advance through the purchase order workflow process and, consistent with that process. Amounts exceeding $5,000 for a single purchase requires additional approval from the Chairperson of the Board of Trustees.
1.5.3.4 In the event of purchases for facilities and information technology, before the purchasing approval, a ticket number needs to be obtained from the facility or information technology department by following the appropriate ticketing system process.
1.5.3.5 Cardholders will submit a Purchase Card Expense Report on a weekly basis, attaching receipts for all charges incurred, and, for all purchases originating with non-cardholders, Purchase Orders, and providing an explanation of the purpose of the charges.
1.5.3.6 The Card Expense incurred for CEO and Superintendent needs to report to the Treasurer of the Board of Trustees for review and approval.
1.5.3.7 The school purchasing card bill will be reconciled by the Finance department monthly against the submitted Expense Reports and receipts.
1.5.3.8 All original receipts must be attached to the signed form and submitted to the Finance Department by the 28th day of the current month after the expenses were incurred. The Finance Department will reconcile submitted charges monthly and notify cardholders of any purchase variance by the 5th business day of the following month. The cardholder will provide supporting documentation within 3 business days. Otherwise, the employee is expected to reimburse the Company for those card purchases.
1.5.4 Personal purchase & reimbursement
1.5.4.1 The School Principal can authorize an employee to spend their own funds to make a purchase that will then be reimbursed by the school.
1.5.4.2 The purchase must be pre-approved through the Purchase Order workflow by the School Principal to ensure the expense is reimbursable. A Purchase requisition in the Accounting system is required; supporting documentation must be included such email trails and quotes.
1.5.4.3 Personal purchases may not exceed $500. Any item(s) purchased should follow the
7
approved reimbursement established within the approved purchase order process outlined in section 1.1 of this manual.
1.5.4.4 After the purchase, the employee must complete an Expense Reimbursement form (see attachment) providing the approved Purchase Order number, detailed information about the purchase and its intended use. Reimbursement request without an approved purchase order will not be authorized for payment. Expense Reimbursement forms must be signed by the School Principal, Superintendent, COO or CEO (an employee may not approve their own expense reimbursement form) and sent to the vendor payment system Bill.com for payment processing.
1.5.4.5 For Travel mileage reimbursement, google maps are considered appropriate forms of documentation.
1.5.4.6 Expense Reimbursement requested by the School Principal and the CEO need to be submitted to the Treasurer of the Board of Trustees, who will review and approve expenses before reimbursement is processed.
1.6 Transactions with related parties
1.6.1 All employees must disclose relationships (e.g., immediate family or close interpersonal relationships) prior to initiating transactions with proposed or current vendors.
1.6.2 The Finance Department need to reconcile the related transactions monthly and prepare monthly report of such transactions by the 10
th business day of the following month.
1.6.3 The COO or CEO must review related party transactions at ASPIRA and the School Principal must review related party transactions at the School. Either ASPIRA or the School has the right to request additional transaction information, including fair market value assessments, to determine whether the transaction is in the best interest of the school.
1.6.4 The monthly report needs to be reviewed and approved by the Board of Trustees with note disclosing any related party transactions involving sums greater than $5,000.
1.6.5 The payments of related transactions need to be authorized by the COO or CEO at ASPIRA and the Principal at the School.
2 Position requisition through Position Control Process (PCR)
2.1 In order to maintain an accurate list of all approved and budgeted positions, Finance will create and maintain a Position Control Roster for ASPIRA and each ASPIRA School. The Position Control Roster is also intended to provide synergy between actual staff and the budgeted staff positions to analyze the fiscal impact of position decisions throughout a budget year.
2.2 All requests for and filling of Staff Vacancies, regardless of whether the open position is due to retirement, resignation, transfer or creation of a new position, and for initiating an employee Status Change for existing positions, must be approved by the:
Superintendent (for ASPIRA School and Central Office positions)
The Position Control Staffing Requisition Form or Status Change Form must be completed and approved prior to initiating a process for any new hires (replacements for
8
budgeted positions), transfers of current employee or creation of a new (un-budgeted) position.
2.3 Approval process involves the financial recommendation made by the Controller along with the appropriate approvers. The PCR tracking report will be summarized monthly and included in the Monthly HR Hiring Report to the boards.
3 Expenses and Employee Reimbursement
3.1 Expenses relating to staff recruitment
3.1.1 ASPIRA and its schools may reimburse certain expenses incurred by non-employees, in the process of interviewing these individuals to become employees of ASPIRA Inc. of PA and it schools. The School Principal and the Superintendent or the CEO must approve this reimbursement through the Purchase Order workflow process. The following language explains this policy:
3.1.1.1 Applicants who must travel further than 25 miles to attend an interview are eligible to apply for travel reimbursement. ASPIRA and the Schools may reimburse travel costs including plane fare (plus applicable taxes), train fare, taxi fare, metro fare, rental car expense and hotel expense in an amount up to $300. Ineligible expenses include food, entertainment and side trips to other destinations. To obtain this reimbursement, the applicant must submit a detailed list of expenses that includes the date that the expense was incurred, the vendor name (e.g., Delta, Amtrak, Yellow Cab, etc.), a description of the service (e.g., taxi from Airport to school) and the amount of the expense. Original receipts must be attached to the list.
3.1.2 Other teacher and staff recruitment expenses should be paid directly by ASPIRA and the Schools, per the Board approved budget and standard procurement processes under Section1 of this manual.
3.2 Expenses relating to staff travel
3.2.1 When staff are required by supervisors (School Preclinical, Superintendent, and CEO, etc.) to attend events (e.g., conferences, workshops, professional development, etc.) relating to the conduct of their job, certain travel expenses are eligible for reimbursement.
3.2.2 In no case should an ASPIRA or School employee spend personal funds for work-related travel without first consulting their supervisor about reimbursement. Reimbursements should flow through the Purchase Order workflow process. In all cases, individuals are expected to be frugal in their expenditures and use the federal travel regulations as a guideline (FTR)
2.
3.3 Other non-staff expenses
3.3.1 Other non-staff expenses (board members, etc.) must be evaluated on a case by case basis and approved by the Superintendent, CEO or the Treasurer of the Board of Trustees
3.4 Expenses of the CEO and Superintendent
3.4.1 The CEO and Superintendent will submit Expense Reimbursement forms with original receipts to the Treasurer of the Board of Trustees, who will review and approve expenses before reimbursement is processed.
2 Available at http://www.gsa.gov
9
4 Banking and Cash Management
4.1 Bank Account Structure
4.1.1 ASPIRA and the Schools will each, and separately, maintain at least one business operating bank account at any given time. ASPIRA and the Schools will separately maintain additional bank accounts to comply with regulations issued by state and local government in regards to funds received for charter school programs. We need this language until the schools apply for and become a true network under the recent amendment to the charter law.
4.1.2 In particular, each school will maintain at least one non-interest bearing account at all times. Federal funds received will be deposited into this account until such time as the funds can be shown to be spent on eligible expenses and documented accordingly to the Federal Government or representatives thereof.
4.1.3 ASPIRA and the Schools will each, and separately, maintain at least one savings or money market account that earns a higher yield than a standard business checking account and can be used to collect funds that are not immediately required to support school operations at a given point in time.
4.1.4 All accounts will be held in the domestic United States with banks that offer standard FDIC insurance on deposits. All bank accounts must be reviewed and approved by the Controller.
4.2 Purchases, Accounts Payable, and Cash Disbursements
4.2.1 This cycle represents the purchase of goods and services by the school and the subsequent payment for those goods and services.
4.2.2 The basic accounting steps in the payment cycle are:
Conversion of Purchase Orders and processing of vendor invoices in the Intacct and Bill.com accounting systems.
Issuing checks and initiating payments in the Bill.com Accounts Payable system.
Recording checks in the general ledger and cash disbursement journal.
Performing month-end reconciliation procedures and maintaining the Intacct accounting system.
4.2.3 Check Disbursement
4.2.3.1 The check disbursement process will commence only after authorization of payment for invoices by a designated school official in the Intact accounting system.
4.2.3.2 All checks have two signatories. Checks can only be signed by the School Principal, COO, Superintendent, CEO, or the President of the Board of Trustees
4.2.3.3 Checks can only be printed and initiated by the Accounts payable staff or the staff designated by the Controller.
4.2.3.4 All signatures shall be reviewed by the Accounts payable staff or the staff designated by the Controller. A subsequent review is performed during the bank reconciliation to ensure proper internal control.
4.2.3.5 Blank checks will be held at ASPIRA and the Schools in a secure location.
10
4.2.3.6 All duplicate checks or check stubs will be stored with their associated Purchase Order, packing slip (if applicable), and invoice with a Payment Approval stamp.
4.3 Cash Collection
4.3.1 The school office may collect small amounts of cash from students and parents for incidental items (e.g., school trips, uniforms, etc.). Cash/checks dropped off at the school office will be placed directly into a locked safe secured by the Lead Admin. In situations where staff collects cash/checks for school-related activities, they will collect all forms and payments from students, note the payment on a roster, place forms, payments and roster in a large envelope, and submit the envelope before lunch to the school office, where it will be placed into the locked safe by the Lead Administrator.
4.3.2 This cash must be held in a locked safe at the school site until the Lead Administrator deposit them into the appropriate bank account.
4.3.3 Cash collected must be accompanied by a receipt from triplicate receipt book, which clearly documented in terms of the payee, date of collection and the amount. A copy needs to be submitted to designated Staff Accountant in the Finance department; one copy will be given to the persons who make cash payment; the third copy is filed at the School.
4.3.4 Cash in the school safe should not exceed $500 at any given time, with the exception of beginning of year collections and end of year trips at which time the amount may not exceed $2500.
4.4 Deposits
4.4.1 A deposit slip must be completed for all deposits of cash or checks. The deposit slip is provided by the bank receiving the deposit.
4.4.2 On a weekly basis, the senior operations staff member at the school records all cash and checks to be deposited in a Deposit Log (see attachment). The deposit is counted by the senior operations staff member and the School Principal, both of whom sign the Deposit Log to verify the amount of the deposit.
4.4.3 The entry of the deposit into the accounting system needs to be reviewed by the designated Staff Accountant who didn’t handle the actual deposit.
4.4.4 The deposit Log and the bank deposit slip will be filed with the associated cash collection or accounts receivable documentation. The deposit log outlines the date, the amount, the purpose of the cash receipts and the program activities related to the cash receipts.
4.4.5 To collect cash receipts effectively, the school/regional office may set up online accounts, such as PayPal or Square, upon approval by the Controller. The school/regional office is not authorized to use or disburse any funds accumulated in those accounts. Instead, the funds shall be transferred to the linked bank account on a monthly basis with proper deposit log accompanied by the back-up documentation. The deposit log outlines the date, the amount, the purpose of the cash receipts and the program activities related to the cash receipts.
4.5 Other Banking Functions
4.5.1 Intra-entity transfers (fund transfers between ASPIRA and the Schools owned bank accounts only) can be executed by the Controller with the approval from COO or the Treasurer of the Board of Trustees as necessary to make funds available in needed operating accounts.
4.5.2 Wire transfers out of ASPIRA and the Schools can only be made in lieu of approved payment by check. This transfer requires standard purchase documentation (e.g., contracts / Purchase Orders / Payment Approvals) per section 1 of this manual.
4.5.3 Bank statements are entered into the books and reconciled monthly prior to being filed in a secure location.
11
4.5.4 Bank reconciliations are reviewed monthly by the Controller. As part of monthly closing, the Controller shall compare the bank reconciliation with trial balance to determine the final cash balance.
5 Investments
5.1 Securities
5.1.1 Board approval is required to purchase any security or certificate that is different from a standard certificate of deposit issued by a U.S. bank.
5.1.2 Federal funds may not be used to purchase any interest-bearing security & all investments must be made in compliance with PA 24 PS 4-440.1
5.1.3 Any proposed security purchase must conform to applicable tax law and be consistent with our stated 501(c)(3) purpose. In all cases, the Board and the School Administrators should exercise extreme caution when considering purchasing any securities.
5.1.4 U.S. Government backed treasury bills and other similar instruments are considered examples of conservative securities available for purchase.
5.2 Real Property
5.2.1 ASPIRA and the Schools can purchase real property (property, physical plant and equipment) that is in the service of its mission as a public charter school.
5.2.2 Any purchase of real property is subject to the same procurement guidelines outlined in this document.
5.2.3 Large facility purchases that require debt financing are subject to the debt guidelines outlined in this document.
5.3 Considerations
5.3.1 All investments made by ASPIRA and the Schools should be extremely conservative and take all necessary precautions to limit down-side risk. High risk/return securities and real estate speculation are examples of investments that ASPIRA and the Schools will not participate in.
6 Debt
6.1 Working Capital
6.1.1 The CEO, COO and the Controller should develop recommendations to the Board of Trustees outlining any needs for working capital lines of debt.
6.1.2 The School Board must approve any new line of working capital debt for the Schools and the ASPIRA Board must approve any new line of working capital debt for ASPIRA.
6.1.3 Certain long-term leases may be treated as capital leases and thus reported as liabilities on the financial statements. In these cases, ASPIRA and the Schools shall adhere to FASB guidelines and adhere to advice from their respective auditors in completing the proper accounting and bookkeeping for these leases.
12
6.2 Term Debt
6.2.1 In order to complete larger purchases of property (e.g., facilities or improvements thereof), ASPIRA or the School may need to enter into a longer term obligation to a bank or other fiduciary institution.
6.2.2 The term of the loan should not exceed the useful life of the asset itself.
6.2.3 Term debt is subject to the approvals outlined in the Approvals section.
6.2.4 Every effort should be made to obtain the most competitive rates and terms from accessible lenders, adhering to bid guidelines for public charter schools when necessary.
6.3 Considerations
6.3.1 All debt taken on by ASPIRA or the Schools should be extremely conservative and ASPIRA and the Schools shall take all necessary precautions to limit down-side risk.
7 Grants and Donations received
7.1 Private Contributions
7.1.1 The Boards, Principals, Superintendent and CEO are responsible for coordinating efforts to obtain private contributions, whether these contributions are cash or in-kind services.
7.1.2 Copies of documentation of any donation including in-kind contributions shall be provided to the Finance Department. The documentation must record each pledge made, including the name of the contributor, the date of the pledge, the amount and any restrictions.
7.1.3 ASPIRA and the Schools must comply with IRS regulations and guidelines concerning the acknowledgement of private contributions in the form of letters that outline the value of any goods or services received by the donor in conjunction with the donation and the net amount that is considered a direct donation.
7.2 Private Grants
7.2.1 Grants from private foundations or individuals are considered distinct from contributions insofar as they come with additional reporting or compliance features, and/or they include multiple disbursements over time.
7.2.2 The Superintendent and CEO and their designees are responsible for preparing grant applications and negotiating grant agreements with foundations or individuals.
7.2.3 Grants applications must be approved by the appropriate board if the grant will introduce potentially significant changes to the operation of the school (such as restrictive oversight or changes to day to day management).
7.2.4 The grant applicant must maintain paper and electronic documentation concerning grants pledged, including the date of the pledge, copies of executed grant agreements, reporting requirements, and copies of reports submitted.
7.3 Federal Funds
7.3.1 The Grant Coordinator is responsible for applying for entitlement funds (funds currently available through the No Child Left Behind Act).
7.3.2 The Grant Coordinator will work with the Schools and Finance department to submit the annual grant applications with budgets and narratives, per the program requirements, explaining how such supplementary funding will be applied towards program expense.
13
7.3.3 Additionally, the Grant Coordinator must work with School and operations staff to ensure that expenses incurred that are eligible under certain grants are properly flagged with the grant name. The Finance Department must establish a set of grant or program codes to track eligible grant expenses.
7.3.4 The Controller is responsible for ensuring compliance with program regulations at all times.
7.3.5 Quarterly reports on satisfaction of program requirements shall be submitted to monitoring authorities including all sufficient documentation. In the case of entitlement grants, such reports are the primary responsibility of the Finance Department and are prepared in collaboration with operations staff at the academies and the Grant Coordinator.
7.4 In-Kind Donations
7.4.1 It is necessary to document the cost of in-kind contributions for financial statements and matching grant purposes. There are three accepted methods of accounting for in-kind costs: a book of original entry; general journal entries supported by worksheets detailing the in-kind costs; or worksheet entries without recording in-kind costs in the school's official accounts.
7.4.2 In-kind cost and contributions will be recorded in the school’s accounts either in a special in-kind book of original entry or a general journal entry.
7.4.3 When services are donated outside of ASPIRA and the Schools, rates applied to donated hours should be documented and substantiated in order to arrive at the amount booked as in-kind services. For in-kind goods, documentation should include: date of donation, description of donated item, estimated fair market value of donated items, and how each item was donated along with the locations of the item (cross referenced to the fixed asset listing, if applicable). Each donated item could be accompanied by a document containing the signature of the donor indicating that the item is being donated.
8 Payroll
8.1 Employees at ASPIRA INC OF PA AND ASPIRA SCHOOLS are either full-time salaried, part-time salaried or part-time hourly. Hours of operation are noted in the employee handbook, along with policies regarding sick and vacation days. ASPIRA and ASPIRA SCHOOLS are equal opportunity employers, regardless of employee status. Pay rates are determined at the start of the school year, including stipend, and may be revised through appropriate HR processes.
8.2 Timekeeping
8.2.1 Full-time salaried employees are responsible for tracking their attendance in the time tracking system and reporting regularly to supervisors concerning planned or unplanned absences.
8.2.2 Part-time salaried or part-time hourly employees must track the time spent working for ASPIRA and the ASPIRA Schools in the time tracking system every working day and report this information to their supervisors on a regular basis. Supervisors can require that employees fill out time worksheets, as necessary.
8.2.3 Timekeeping relating to specific grant funds must be reviewed and addressed periodically order to maintain proper accounting records for a grant, per the requirements of the grant. In these cases, certain individuals may be asked to track time pertaining to a specific function or type of task.
8.3 Pay Process
8.3.1 Pay is remitted on a semi-monthly basis based on approved pay rate and time and attendance tracked in the timekeeping system.
14
8.3.2 The Payroll Coordinator compiles the payroll files, enters them into the payroll processing system, and reviews the pre-processing payroll register for discrepancies before submitting the data for paycheck processing.
8.3.3 The Payroll Coordinator or third party payroll processing system prepares the checks, completes federal and state withholdings, and maintains records and issues reports.
8.3.4 Payroll reports are received and reviewed by the Controller or designee.
8.3.5 Payroll data is entered into the accounting system by the Finance Associate and reviewed by the Staff Accountant prior to being posted.
8.4 Taxes and Compliance
8.4.1 Annual tax returns are prepared using a third party.
8.4.2 Withholdings, W-2s and 1099s can be prepared and managed by the Controller or a designee.
9 Fixed Assets
9.1 Capitalization
9.1.1 Operating assets are capitalized when the value of a bulk order of like items exceeds $2,000 and/or the value of a single item exceeds $2,000, and the item’s useful life exceeds one year with reasonable expectation.
9.2 Depreciation
9.2.1 Fixed assets are depreciated in accordance with IRS guidelines by type of asset and in consultation with the third-party auditor.
9.2.2 Depreciation schedules are currently maintained by the Finance Department and reconciled at fiscal year-end.
9.3 Disposal or Sale
9.3.1 Fixed assets with value in excess of $500 and less than $2,500 should be sold at the end of their useful lives and/or donated to another 501(c)(3) organization of choice with approval from the Principal at the schools and CEO or COO at ASPIRA.
9.3.2 Assets with value in excess of $2,500 that need to be sold require Board approval.
9.3.3 Fixed assets that are broken and cannot be repaired should be disposed and recorded as impaired on the books.
9.4 Inventory
9.4.1 ASPIRA and the Schools must maintain an inventory of all operating assets.
9.4.2 The inventory document should include serial numbers for all equipment that was purchased for an amount exceeding $2,000.
9.4.3 Items should be noted by description, date purchased, cost or fair value and approximate location.
9.4.4 The inventory should be reconciled with the books annually to ensure accuracy and recognize impaired operating assets.
15
10 Financial Data & Record Keeping
10.1 Accounting Data
10.1.1 The financial books shall be maintained electronically in a software application that is suitably robust to address the tracking and reporting needs.
10.1.2 The Controller shall review and update (as necessary) the books at least weekly with expenses, deposits and other transactions. All purchasing transactions are entered directly in the accounting software system, and then posted to the GL after review by the designated Staff Accountant.
10.2 Bank Account Data
10.2.1 The designated Staff Accountant shall maintain records and secure files concerning bank accounts that are open, as well as any bank accounts that have been open for the prior two fiscal years.
10.2.2 Bank statements shall be stored at ASPIRA and the Schools, where the office can be locked during non-business hours and access is restricted to approved personnel and registered visitors.
10.3 Procurement Documentation
10.3.1 The Accounts payable staff or designee shall maintain files with all relevant purchase orders, invoices, payment approvals and check stubs that are organized alphabetically by vendor name.
10.3.2 The Controller or its designee shall review these files periodically to ensure that they are accurate and well-organized, such that receipts and documentation will support a clean audit.
10.4 Grants and Contributions
10.4.1 The grant applicant must maintain files including all pledges, grant notices, awards and agreements as well as copies of reports submitted to private and public funders and supply copies of the same to the Finance Department.
10.4.2 The Controller or designated Staff Accountant shall maintain additional files documenting funds receipt for per pupil funding and federal funds (entitlement or other).
10.4.3 Copies of reports shall be made available to School Principal and the management team upon request.
10.5 Audits and 990s
10.5.1 The Controller or designee shall maintain copies of the annual financial audit and prepared 990s to make available as parties request these documents, in compliance with ASPIRA and the Schools 501(c)(3) status.
10.6 Asset Inventories
10.6.1 ASPIRA and the Lead Administrator at each school shall maintain records of the assets on-site, including all inventory information described in this document.
10.6.2 Copies of these inventories shall be provided to the Controller or designee on an annual basis as needed for the financial audit.
10.7 Insurance Certificates
10.7.1 The Lead Administrator or Director of Operations at each school will maintain records showing adequate insurance coverage (per the public charter school requirements) at the school site.
10.7.2 The COO or designee will maintain duplicate records at the headquarters office.
16
10.8 Corporate Documents
10.8.1 Original articles of incorporation, by-laws, the corporate certificate and the tax exempt certificate will be stored in a fire retardant unit in a secured location at ASPIRA.
11 Insurance
11.1 To ensure the viability and continued operations of ASPIRA and the Schools, the school needs to have an active risk management program that includes a comprehensive insurance package. ASPIRA and the Schools maintain adequate insurance against general liability, as well as coverage for building contents, student accident, and Directors and Officers Liability, among other risks.
11.2 The COO will recommend to the Board of Trustees the type and level of insurance needed for the school and for any sub-grantees or subcontractors. These levels are currently dictated in the charter agreement by the School District of Philadelphia.
12 Budgeting
12.1 Planning
12.1.1 Budgets are created for each school, department, and, when applicable, program and grant annually. The budgeting process involves key stakeholders including School Principals, department heads, management team, and finance staff. The budget should be prepared by the appropriate levels of management on an accrual basis for final approval by the Board of Trustees before the beginning of each school year on July 1st.
12.1.2 The COO and the Controller or the designee will establish guidelines, priorities and assumptions for preparation of the budget. These assumptions will be communicated to School Principals, department heads and other members of the management team. The Controller will also establish procedures, budgeting formats and a timetable for budget preparation. The timetable, which will begin no later than March of each year, will result in the Finance Committee of the Board of Trustees receiving the proposed budget in time to review and approve it before presentation to the full Board for approval.
12.2 Preparation
12.2.1 The Controller will prepare initial projections of revenues and expenditures for planned services, projects and programs, considering historical data and future growth plans and factoring in any shifts or adjustments to staffing levels communicated by School Principals as approved by Superintend and operational staff communicated by department heads as approved by COO. Once these budgets are complete, they will be submitted to the School Principals, in the case of the Schools, and the COO and Superintendent, in the case of ASPIRA, for review and revision based on new program planning. Upon submission of the proposed budgets by School Principals, the Controller will consolidate the budgets into a total organizational budget. The consolidated budget will be reviewed by the Superintendent, CEO and COO. After any adjustments or changes, the budget will be ready for submission to the Finance Committee of the Board of Trustees at least two weeks prior to the Board of Trustees meeting for approval.
12.2.2 All the budgets are required to set aside of 2% of revenues as a rainy fund reserve until the school’s average daily cash on hand reaches at 60 days based on the computation of the most recent audit. Once the School reaches the accumulative reserve target, the budgets shall remain balanced, that is, the budgeted expenses are less than the budgeted revenues.
17
12.3 Approval
12.3.1 The Chair of the Finance Committee, along with the School Principal, Superintendent, CEO, COO, and Controller, will present the proposed budgets to the Board of Trustees for final approval prior to the end of the preceding fiscal year.
12.4 Revisions
12.4.1 Based on monitoring events that occur during the year, if it is determined that a significant revision to the budget is required and appropriate, budget revisions may be initiated, reviewed and approved by the CEO and COO or designee. Proposed budget revisions will be submitted for approval to the Board of Trustees. Approved budget revisions will be communicated to all parties with budgetary responsibilities. Revisions to the budget, once it is approved by the Board of Trustees, will be subject to significant scrutiny to ensure that they are necessary.
12.5 Control
12.5.1 Once budgets are approved by the Board of Trustees before the start of the fiscal year, they are uploaded into the accounting software. These budgets are then used to run monthly Budget-to-Actual Expense Reports that are distributed to School Principal, the Superintendent operations staff, program managers and the CEO. The budgets are enforced in the Spend Management tool of the requisition system in referencing to approve the purchase requisitions.
13 Reporting of Financial Statements
13.1 General Ledger and Financial Statements
13.1.1 The general ledger process consists of posting the period’s transactions to the general ledger and preparing financial statements. The accounting processes relating to the general ledger closing cycle include the following:
Preparing monthly journal entries.
Reconciling bank accounts and other general ledger accounts.
Reviewing general ledger activity and posting adjusting journal entries.
Producing the general ledger and financial statements.
13.1.2 All ledgers are reviewed by a designated Staff Accountant before posting into the system. All financial statements are reviewed by the Controller before releasing.
13.2 Preparing financial statements and communicating key financial information is an important accounting function. Statements are management tools used in making decisions, in monitoring the success of financial objectives and as a standard method for providing information to interested parties external to the organization. ASPIRA and the Schools statements are audited each fiscal year and reflect year-to-year historical comparisons.
13.3 The Statement of Financial Activity, presented according to program revenue and cost centers, reflects the financial activities of a period. A balance sheet presenting assets, liabilities and surplus (equity) provides a financial “picture” of ASPIRA and the Schools as of a particular date.
13.4 In designing and distributing financial statements, the Finance team will consider the following:
13.4.1 Confidentiality and public disclosure requirements.
13.4.2 Purpose to serve – internal or external
13.4.3 Amount of detail and technical data to include
13.4.4 Frequency of distribution
18
13.4.5 Presentation of variances, footnotes and graphics
13.5 Policy
13.5.1 The objective of ASPIRA and the School is to prepare accurate financial statements according to GAAP and distribute them on a timely basis in the most cost effective manner.
13.6 Procedures
13.6.1 Monthly Financial Statements
13.6.1.1 Monthly financial statements will be provided to the senior management team and the School Principal.
13.6.1.2 Financial Statements for the month will be prepared by the 10th work day of the
following month.
13.6.1.3 Such monthly financial statements will be reviewed by the recipients for accuracy and comprehensiveness and feedback for the Management Discussion and Analysis (MDA) to be presented to the Board and the banks.
13.6.1.4 These statements will report the year-to-date actual revenues and expenses, the year-to-date budget, and a comparison of actual vs. budget for the period among other analysis as deemed necessary to understand the financial transactions.
13.6.1.5 Significant variances will be reviewed by the Finance team and the School Principal and Department and Program Leaders to identify any potential fiscal issues or irregularities.
13.6.2 Financial Statements presented to the Finance Committee and the Board of Trustees
13.6.2.1 Monthly financial statements along with MDA will be provided to the Finance Committee of the Board of Trustees at the regular meetings.
13.6.2.2 Most recent monthly financial reporting package will be presented to the Board of Trustees for review and approval.
13.6.2.3 These statements will report the year-to-date actual revenues and expenses, the year-to-date budget, and a comparison of actual vs. budget for the period along with MDAs.
13.6.3 Financial Statements to the External Stakeholders
13.6.3.1 All monthly financial statements released to the external stakeholders as per request need to be reviewed and approved by the Controller.
13.6.4 Annual Financial Statements Audit
13.6.4.1 To provide an independent opinion of the ASPIRA and the Schools financial status, independent audits will be conducted annually by separate certified public accounting firms for ASPIRA and the Schools.
13.6.4.2 The Board of Trustees will appoint the audit firm for the Schools and ASPIRA’s Board of Directors will appoint the audit firm for ASPIRA.
13.6.4.3 The audit will cover the twelve (12) month period ending June 30th. In accordance
with Federal regulations, these Financial Statements will be completed no later than four (4) months following the close of the fiscal year.
19
13.6.4.4 The Board of Trustees Finance Committee will act as the audit committee for the ASPIRA Schools.
13.6.4.5 The audit will include the following actions:
13.6.4.5.1 All receipts, statements, checks, Board minutes and other required information will be compiled and assembled after the close of the Corporation’s fiscal year by the Finance Team.
13.6.4.5.2 A formal letter of engagement specifying the start and end date of the audit engagement will be conveyed to the auditor.
13.6.4.5.3 A copy of the audited financial statements, management letter, and governance letter will be provided to all members of the Board of Trustees. The Treasurer of the Board of Trustees, along with the independent auditor, will review the statements with the members present. A vote to accept the report will be held, with the results of the vote recorded in the minutes of the meeting.
13.6.4.5.4 The Treasurer will present any recommendation made by the independent auditor to the Board of Trustees at a regularly scheduled meeting. Recommendations will be discussed and adopted by the Board, if deemed appropriate.
13.6.5 Annual Close
13.6.5.1 After the annual audit, the Finance Team will prepare adjusting entries from the audit and perform a final, audited close. Reports and analysis will then be issued to the appropriate stakeholders.
13.6.6 Accrual Processing
13.6.6.1 In order to match expenses and revenues appropriately, ASPIRA and the Schools will recognize expenses and income as they are incurred and earned, whether payments have been made or received, or not. Therefore, at year end and at whatever other times it is necessary for external reporting purposes, income and expenses which have been incurred but not settled will be recognized and recorded through journal entries (e.g. depreciation, vacation accrual, payroll accruals).
13.6.6.2 Any accruals along with work-paper need to reviewed and approved by the Controller.
20
14 Whistleblower
14.1 ASPIRA and the Schools require directors, officers and employees to observe high standards of business and personal ethics in the conduct of their duties and responsibilities. As employees and representatives of the Organization, we must practice honesty and integrity in fulfilling our responsibilities and comply with all applicable laws and regulations. It is the responsibility of all directors, officers and employees to comply and to report violations or suspected violations in accordance with this Whistleblower Policy. No director, officer or employee who in good faith reports a violation will suffer harassment, retaliation or adverse employment consequence. An employee who retaliates against someone who has reported a violation in good faith is subject to discipline up to and including termination of employment. This Whistleblower Policy is intended to encourage and enable employees and others to raise serious concerns within ASPIRA and the School prior to seeking resolution outside ASPIRA and the School.
14.2 ASPIRA and the Schools have an open door policy and suggests that employees share their questions, concerns, suggestions or complaints with someone who can address them properly. In most cases, an employee’s supervisor is in the best position to address an area of concern. However, if an employee is not comfortable speaking with their supervisor or not satisfied with their supervisor’s response, they are encouraged to speak with the CEO or Superintendent or anyone in management whom they are comfortable in approaching. The Finance Committee of the Board of Trustees will address all reported concerns or complaints regarding corporate accounting practices, internal controls or auditing.
14.3 Anyone filing a complaint concerning a violation or suspected violation must be acting in good faith and have reasonable grounds for believing the information disclosed indicates a violation. Any allegations that prove not to be substantiated and which prove to have been made maliciously or knowingly to be false will be viewed as a serious disciplinary offense.
14.4 Violations or suspected violations may be submitted on a confidential basis by the complainant or may be submitted anonymously. Reports of violations or suspected violations will be kept confidential to the extent possible, consistent with the need to conduct an adequate investigation. The claims can be made to the HR department or the members of the Board of Trustees or any regulation agency.
15 Fraud
15.1 ASPIRA and the Schools do not tolerate any fraud or suspected fraud involving employees, officers or directors, as well as members, vendors, consultants, contractors, funding sources and/or any other parties with a business relationship with the Schools. Any investigative activity required is conducted without regard to the suspected wrongdoer’s length of service, position/title, or relationship with the ASPIRA and the Schools.
15.2 The School Principal, COO, Superintendent, CEO, the Controller, and Board of Trustees are responsible for the detection and prevention of fraud, misappropriations, and other irregularities. Fraud is defined as the intentional, false representation or concealment of a material fact for the purpose of inducing another to act upon it to his or her injury.
15.3 Any fraud that is detected or suspected is reported immediately to the Audit Committee; they take the necessary actions.
15.4 The terms fraud, defalcation, misappropriation, and other fiscal irregularities refer to, but are not limited to:
15.4.1 Any dishonest or fraudulent act 15.4.2 Forgery or alteration of any document or account belonging to the Schools 15.4.3 Forgery or alteration of a check, bank draft, or any other financial document 15.4.4 Misappropriation of funds, supplies, equipment, or other assets of the Schools 15.4.5 Impropriety in the handling or reporting of money or financial transactions 15.4.6 Disclosing confidential and proprietary information to outside parties 15.4.7 Accepting or seeking anything of material value from contractors, vendors, or persons providing
goods or services the Schools 15.4.8 Destruction, removal or inappropriate use of records, furniture, fixtures, and equipment 15.4.9 Any similar or related irregularity
21
15.5 Investigation Responsibilities
15.5.1 The Finance Committee will have the primary responsibility for the investigation of all suspected fraudulent acts as defined in the policy. The Finance Committee may utilize whatever internal and/or external resources considered necessary in conducting an investigation. If an investigation substantiates that fraudulent activities have occurred, the Finance Committee will issue reports to appropriate designated personnel and to the Board of Trustees.
15.5.2 Decisions to prosecute or to refer the examination results to the appropriate law enforcement and/or regulatory agencies for independent investigation are made in conjunction with legal counsel and senior management, as are final dispositions of the case.
15.6 Confidentiality
15.6.1 The Finance Committees will treat all information received confidentially. Any employee who suspects dishonest or fraudulent activity notifies the Chair or members of the Finance Committees immediately (either by writing, phone or email) and does not him- or herself attempt to conduct investigations or interviews/interrogations related to any suspected fraudulent act.
15.6.2 Investigation results are not disclosed or discussed with anyone other than those who have a legitimate need to know. This is important in order to avoid damaging the reputations of persons suspected but subsequently found innocent of wrongful conduct and to protect the Schools from potential civil liability.
15.7 Authority for Investigation of Suspected Fraud
15.7.1 Members of the Finance Committee will have:
15.7.1.1 Free and unrestricted access to all of the School’s records and premises; and
15.7.1.2 The authority to examine, copy, and/or remove all or any portion of the contents of files, desks, cabinets, and other storage facilities on the premises without prior knowledge or consent of any individual who may use or have custody or any such items or facilities when it is within the scope of their investigations.
15.8 Reporting Procedures
15.8.1 An employee who discovers or suspects fraudulent activity contacts the school’s Board Chair or Audit Committee members immediately. The employee or other complainant may remain anonymous. All inquiries concerning the activity under investigation from the suspected individual(s), his or her attorney or representative(s), or any other inquirer are directed to the Audit Committee or legal counsel. No information concerning the status of an investigation is given out. The proper response to any inquiry is, “I am not a liberty to discuss this matter.” Under no circumstances should any reference be made to “the allegation,” “the crime,” “the fraud,” “the forgery,” “the misappropriation,” or any other specific reference.
15.8.2 The reporting individual is informed of the following:
15.8.2.1 Do not contact the suspected individual in an effort to determine facts or demand restitution.
15.8.2.2 Do not discuss the case, facts, suspicions, or allegations with anyone unless specifically asked to do so by the ASPIRA and the School’s legal counsel or the Audit Committee
ASPIRA, INC. OF PENNSYLVANIA ANTONIA PANTOJA CHARTER SCHOOL
EUGENIO MARIA DE HOSTOS CHARTER SCHOOL PEQ`UENOS PASO DE ASPIRA
ASPIRA BILINGUAL CYBER CHARTER SCHOOL JOHN B. STETSON CHARTER SCHOLL
OLNEY CHARTER HIGH SCHOOL
FINANCIAL POLICY MANUAL
ADDENDUM
POLICY GOVERNING FEDERAL GRANTS
This internal control manual addendum provides policies and procedures for handling financial transactions related to the federal grants in addition to the Financial Policy
Manual. Responsible parties are identified and the segregation of duties among these parties is outlined. This manual is a resource to ensure compliance with state and
federal laws, as well as a tool to help produce timely and accurate financial information.
3
1 Allowability of costs Expenditures must be aligned with approved budgeted items. Any changes or variations from the state-approved budget and grant application need prior approval from the state. When determining how the School will spend its grant funds, Finance Department and Grant Coordinator will review the proposed cost to determine whether it is an allowable use of federal grant funds before obligating and spending those funds on the proposed good or service. All costs supported by federal education funds must meet the standards outlined in EDGAR, 2 C.F.R. Part 3474 and 2 C.F.R. Part 200, Subpart E, which are provided in the bulleted list below.
• Be Necessary and Reasonable for the performance of the federal award.
• Allocable to the federal award.
• Consistent with policies and procedures that apply uniformly to both federally-financed and other activities of the School.
• Conform to any limitations or exclusions set forth as cost principles in Part 200 or in the
terms and conditions of the federal award.
• Consistent treatment.
• Adequately documented.
• Be determined in accordance with general accepted accounting principles (GAAP), unless provided otherwise in Part 200. Part 200 examines the allowability of 55 specific cost items (commonly referred to as Selected Items of Cost) at 2 C.F.R. §§ 200.420-200.475.
• Not included as a match or cost-share, unless the specific federal program authorizes
federal costs to be treated as such.
• Be the net of all applicable credits. The term “applicable credits” refers to those receipts or reduction of expenditures that operate to offset or reduce expense items allocable to the federal award
2 Procurement The School maintains the following purchasing procedures.
4
Responsibility for Purchasing 2.1The School Lead Administrative has the authority to initiate purchases by submitting a requisition in the Intacct.com system. The requisitions needs to be reviewed by the Grant Coordinator for allowability in accordance with the grant budget and Federal Grants regulations and guidelines. Then the requisitions will be routed for approvals by the system following the Board approve financial policy Item 1 Procurement. Once the requisition is approved, the Lead Administrative will work with the Grant Coordinator to make the purchase in following this policy in the event that the purchase is funded by the federal grants.
Purchase Methods 2.2The type of purchase procedures required depends on the cost of the item(s) being purchased.
2.2.1 Purchases up to $3,500 (Micro-Purchases) Micro-purchase means a purchase of supplies or services using simplified acquisition procedures, the aggregate amount of which does not exceed $3,000. The micro-purchase method is used in order to expedite the completion of its lowest-dollar small purchase transactions and minimize the associated administrative burden and cost. Procurement by micro-purchase is the acquisition of supplies or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold. Micro-purchases may be awarded without soliciting competitive quotations if the School considers the price to be reasonable. The School maintains evidence of this reasonableness in the records of all micro-purchases and submit to the Finance Department following the School’s Board approved financial policy.
2.2.2 Purchases between $3,500 and $150,000 (Small Purchase Procedures) Small purchase procedures are those relatively simple and informal procurement methods for securing services, supplies, or other property that do not cost more than $150,000. If small purchase procedures are used, price or rate quotations are obtained in writing from at least three qualified sources.
2.2.3 Purchases Over $150,000 Sealed Bids (Formal Advertising): For purchases over $150,000, bids are publicly solicited and a firm fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is the lowest in price. Contract/Price Analysis: The School performs a cost or price analysis in connection with every procurement action in excess of $150,000, including contract modifications. 2 C.F.R. § 200.323(a). A cost analysis generally means evaluating the separate cost elements that make up the total price, while a price analysis means evaluating the total price, without looking at the individual cost elements.
5
Purchase Cards 2.3When the School uses purchase cards, the School needs to follow the Board approved financial policy item 1.5.3 School card purchases and needs to reviewed by the Grant Coordinator for cost allowability.
Full and Open Competition 2.4All procurement transactions must be conducted in a manner providing full and open competition consistent with 2 C.F.R § 200.319. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements
Maintenance of Procurement Records 2.5The School must maintain records sufficient to detail the history of all procurements. These records will include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, the basis for the contract price (including a cost or price analysis), and verification that the contractor is not suspended or debarred.
Settlements of Issues Arising Out of Procurements 2.6The School alone is responsible, in accordance with good administrative practice and sound business judgment, for the settlement of all contractual and administrative issues arising out of procurements. These issues include, but are not limited to, source evaluation, protests, disputes, and claims. These standards do not relieve the School of any contractual responsibilities under its contracts. Violations of law will be referred to the local, state, or federal authority having proper jurisdiction.
Protest Procedures to Resolve Dispute 2.7The School maintains protest procedures to handle and resolve disputes relating to procurements and, in all instances, discloses information regarding the protest to the awarding agency.
3 Cash management In the event of federal grant receipts, the School will comply with applicable methods and procedures for payment that minimize the time elapsing between the transfer of funds and disbursement by the School, in accordance with the Cash Management Improvement Act at 31 CFR Part 205. Generally, the School receives payment from the PA Department of Education or School District of Philadelphia on a reimbursement basis. 2 C.F.R. § 200.305. However, if the School receives an advance in federal grant funds, the School will remit interest earned on the advanced payment quarterly to the federal agency consistent with 2 C.F.R. § 200.305(b)(9). According to guidance from the U.S. Department of Education (ED), when calculating the interest earned on ED grant funds, regardless of the date of obligation, interest is calculated
6
from the date that the federal funds are drawn down until the date on which those funds are disbursed by the LEA. Interest would not accrue if the LEA uses nonfederal funds to pay the vendor and/or employees prior to the funds being drawn down, commonly known as a reimbursement. The School will remit interest earned on grant funds annually to the U.S. Department of Health and Human Services Payment Management System (regardless of the federal awarding agency for the grant) through an electronic medium using either Automated Clearing House (ACH) network or a Fedwire Funds Service payment. 2 C.F.R. § 200.305(b)(9). The School may retain up to $500 of interest earned per year. The Finance Department will work with Grant Coordinator to calculate the appropriate interest and remit the interest based on the guideline.
4 Travel reimbursement Travel: Travel costs are the expenses for transportation, lodging, subsistence, and related items incurred by employees who are in travel status on official business of a grant recipient. Such costs may be charged on an actual cost basis, on a per diem or mileage basis in lieu of actual costs incurred, or on a combination of the two, provided the method used is applied to an entire trip and not selected days of the trip, and results in charges consistent with those normally allowed in like circumstances in the recipient’s non-federally funded activities and in accordance with the recipient’s written travel reimbursement policies. 2 C.F.R §200.474(a). Costs incurred by employees and officers for travel, including costs of lodging, other subsistence, and incidental expenses, must be considered reasonable and otherwise allowable only to the extent such costs do not exceed charges normally allowed by the School in its regular operations as the result of its written travel policy. In addition, if these costs are charged directly to the federal award, documentation must be maintained that justifies that (1) participation of the individual is necessary to the federal award; and (2) the costs are reasonable and consistent with the School’s established policy. 2 C.F.R §200.474(b). The travel reimbursement needs to follow the Board approved policy Item 3.2 Expenses relating to staff travel and needs to be reviewed by the Grant Coordinator for cost allowability.
ASPIRA BILINGUAL CYBER CHARTER SCHOOL
Financial Statements June 30, 2017
(With Summarized Comparative Financial Information For The Year Ended June 30, 2016) With Independent Auditors’ Reports
Aspira Bilingual Cyber Charter School June 30, 2017 (With Summarized Comparative Financial Information for the Year Ended June 30, 2016)
TABLE OF CONTENTS
Independent Auditors’ Report 1-2
Management’s Discussion and Analysis 3-5
Financial Statements
Statement of Net Assets (With Summarized Comparative Financial Information for the Year Ended June 30, 2016
6
Statement of Activities (With Summarized Comparative Financial Information for the Year Ended June 30, 2016
7
Balance Sheet – Governmental Funds (With Summarized Comparative Financial Information for the Year Ended June 30, 2016
8
Reconciliation of the Balance Sheet of Governmental Funds to the Statements of Net Assets 9
Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds (With Summarized Financial Information for the Year Ended June 30, 2016)
10
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities
11
Notes to Financial Statements 12-22
Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Governmental Funds
23
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
24-25
INDEPENDENT AUDITORS’ REPORT To the Board of Trustees, Aspira Bilingual Cyber Charter School: Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and each major fund of Aspira Bilingual Cyber Charter School (the “School”) as of June 30, 2017, which collectively comprise the School’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities and each major fund of Aspira Bilingual Cyber Charter School as of June 30, 2017, and the changes in its net assets and cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Report on Summarized Comparative Information
We have previously audited Aspira Bilingual Cyber Charter School’s June 30, 2016 financial statements and we have expressed an unmodified audit opinion on these financial statements in our audit report dated January 17, 2017. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2016 is consistent in all material respects, with the audited financial statements from which it has been derived. Other Matters
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. In addition, the schedule of revenues, expenditures and changes in fund balance - budget and actual – governmental funds, as listed in the table of contents is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records use to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of revenues, expenditures and changes in fund balance – budget and actual governmental funds is fairly stated in all material respects in relation to the financial statements as a whole. In addition, the management’s discussion and analysis is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted primarily of inquiries of management regarding the measurement and presentation of the required supplementary information. However, we did not audit the information and do not express an opinion on it. Report on Other Legal and Regulatory Requirements
In accordance with Government Auditing Standards, we have also issued our report dated October 25, 2017 on our consideration of the Aspira Bilingual Cyber Charter School’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Aspira Bilingual Cyber Charter School’s internal control over financial reporting and compliance.
October 25, 2017
Aspira Bilingual Cyber Charter School Management’s Discussion and Analysis June 30, 2017 (With Summarized Comparative Financial Information For The Year Ended June 30, 2016)
3
The Board of Trustees of Aspira Bilingual Cyber Charter School offers readers of the School’s financial statements this narrative overview and analysis of the financial activities of the School for the fiscal year ended June 30, 2017. We encourage readers to consider the information presented here in conjunction with the School’s financial statements.
Financial Highlights
Total revenues increased by $958,328 to $4,800,333 primarily to the improvements of District per-pupil payment rates and higher enrollment of students served.
For the year ended June 30, 2017, the School reported an ending fund balance (deficit) of $(5,902), a decrease of $685,204 from the year ended June 30, 2016.
At the close of the current fiscal year, the School reported ending net assets (deficit) of $(1,699,304) for the year ended June 30, 2017, of which the required adjustments of GASB 68 for the state sponsored pension plan (Pennsylvania Public School Employees’ Retirement System or “PSERS”) contributed to the deficit of $1,693,402. This represented a decrease of $590,721. Under GASB 68, the School recorded an adjustment to net assets of $56,614 for the net liability as of June 30, 2016. The School also recorded a credit of $2,386 in non-cash accrued pension expenses. Without the GASB 68 adjustments, the School would have recorded a decrease of net assets of $650,949.
The School’s cash balance at June 30, 2017 was $301,493, representing a decrease of $765,519 from June 30, 2016.
Overview of the Financial Statements The discussion and analysis is intended to serve as an introduction to the School’s basic financial statements. The School's basic financial statements as presented comprise three components: management’s discussion and analysis (this section), the basic financial statements, budgetary comparison and report required under Government Auditing Standards.
Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the School’s finances, in a manner similar to a private-sector business.
The statement of net assets presents information on all of the School’s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the School is improving or deteriorating.
The statement of activities presents information showing how the School's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
The government-wide financial statements report on the function of the School that is principally supported by subsidies from school districts whose constituents attend the School. Fund Financial Statements A fund is a group of related accounts that are used to maintain control over resources that have been segregated for specific activities or purposes. The School, like governmental type entities, utilizes fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The School has three governmental funds - general, food services and student activities.
Aspira Bilingual Cyber Charter School Management’s Discussion and Analysis June 30, 2017 (With Summarized Comparative Financial Information For The Year Ended June 30, 2016)
4
Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.
Government-Wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a school’s financial position. However, in the case of the School, as a result of the application of GASB 68, net assets are not a useful indicator of the School’s financial position because liabilities exceeded assets by $1,699,304 as of June 30, 2017. The deficit in the School’s net assets is due to the required recording of its proportionate share of the entire PSERS plan and expenses related to the performance of plan administration in fiscal year 2016 and 2015 with the application of GASB 68. Prior to the year ended June 30, 2015, these liabilities were recorded by PSERS in their financial statements.
2017 2016
Total assets 1,309,190$ 2,417,860$ Total liabilities 3,008,494 3,520,443
Total net assets (1,699,304)$ (1,102,583)$
The School’s revenues are predominantly from the School District of Philadelphia, based on student enrollment.
2017 2016Revenues
Local education agencies 4,178,502$ 3,066,130$ Other local sources 8,007 16,224 State sources 7,745 -- Federal sources 606,079 759,651
4,800,333 3,842,005 Expenditures
Instruction 3,667,739 2,395,266 Student support services 100,928 76,243 Administration support 1,181,846 1,051,763 Pupil health 33,051 24,755 Business services 218,848 102,675 Food services 122,509 2,263 Student activities 1,113 3,321 Depreciation 127,634 90,734
5,453,668 3,747,020
Change in net assets (653,335) 94,985
Net deficit, beginning of year, before GASB 68 expense adjustment (1,102,583) (1,093,921)
GASB 68 expense adjustment (SEE FOOTNOTE 11) 56,614 (103,647)
Net deficit, beginning of year, after GASB 68 expense adjustment (1,045,969) (1,197,568)
Net deficit, ending (1,699,304)$ (1,102,583)$
Governmental Funds The focus of the School’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the School’s financing requirements. In particular, fund balance may serve as a useful measure of a government’s net resources available for spending for program purposes at the end of the fiscal year.
Aspira Bilingual Cyber Charter School Management’s Discussion and Analysis June 30, 2017 (With Summarized Comparative Financial Information For The Year Ended June 30, 2016)
5
The School’s governmental funds, (the General and Student Activities Funds), reported an ending fund balance of $(5,902). For the year ended June 30, 2017, the School’s expenditures of $5,485,537 exceeded its revenues of $4,800,333 by $685,204. For the year ended June 30, 2016, the School's expenditures of $3,944,217 exceeded its revenue of $3,842,005 by $102,212. Governmental Fund Budgetary Highlights Some categories of revenues and expenditures varied significantly from those budgeted. Expenses allocated from ASPIRA for maintenance, security, IT support and other administrative expenses were not included in the budget due to the deadline of the filing of the budget and the fact that the expenses could not be reasonably estimated. Capital Asset and Debt Administration Capital Assets As of June 30, 2017, the School’s net investment in capital assets for its governmental activities totals $471,598 (net of depreciation). This investment in capital assets consists of computer equipment. Major capital asset purchases during the year included the following:
Computer equipment amounting to $142,558
Leasehold improvements amount to $14,559
Additional information on the School's capital assets can be found in Note 4 of this report. Economic Factors and Next Year’s Budgets and Rates The School’s Board approved budget next year anticipated that the expenses would exceed the revenues by $393,502. The School’s primary source of revenue, the per student subsidy, has been provided by the School District of Philadelphia. Next year, the School District of Philadelphia has announced that the per pupil rates will increase by $185 to $8,327 for regular education and by $1,597 to $26,179 for special education. The School’s Board approved budget doesn’t include the increases. The School expects to set aside as a reserve for potential future per-pupil funding fluctuations after the additional revenues covering certain marginal expenses. Contacting the School’s Financial Management The financial report is designed to provide interested parties a general overview of the School’s finances. Questions regarding any of the information provided in this report should be addressed to the Chief Academic Officer, Aspira Bilingual Cyber Charter School, 4322 N. 5th Street, Philadelphia, PA 19140.
Aspira Bilingual Cyber Charter School Statement of Net Assets June 30, 2017 (With Summarized Comparative Financial Information For The Year Ended June 30, 2016)
The Notes to Financial Statements are an integral part of this statement.
6
Governmental Activities2017 2016
Assets
Curent assetsCash and cash equivalents 301,493$ 1,067,012$ Federal subsidies receivable 123,025 268,157 Prepaid expenses 16,109 19,253 Due from related parties 70,965 371,323
Total current assets 511,592 1,725,745
Capital assets - net of depreciation 471,598 442,115
Total capital assets - net of depreciation 471,598 442,115
Non-current assetsDeferred outflows of resources (Footnote 11) 326,000 250,000
Total non-current assets 326,000 250,000
1,309,190$ 2,417,860$
Liabilities and Net Assets
Current liabilitiesAccounts payable and accrued expenses 98,900$ 152,074$ Accrued payroll and payroll taxes 367,243 240,160 Due to School District of Philadelphia 50,832 571,770Refundable advances -- 44,088 Due to related parties 519 38,351
Total current liabilities 517,494 1,046,443
Long-term liabilitiesDeferred inflows of resources (Footnote 11) 806,000 49,000 Net pension liability (Footnote 11) 1,685,000 2,425,000
Total long term liabilities 2,491,000 2,474,000
Total liabilities 3,008,494 3,520,443
Net assetsInvested in capital assets, net of related debt 471,598 442,115 Unrestricted (5,902) 679,302 Unrestricted (deficit)- net pension liability (Footnote 11) (2,165,000) (2,224,000)
Total net assets (deficit) (1,699,304) (1,102,583)
1,309,190$ 2,417,860$
Aspira Bilingual Cyber Charter School Statement of Activities Year Ended June 30, 2017 (With Summarized Comparative Financial Information For The Year Ended June 30, 2016)
The Notes to Financial Statements are an integral part of this statement.
7
2017 2016
Net (Expense) Net (Expense)Revenue and Revenue andChanges in Changes inNet Assets Net Assets
Operating Total TotalCharges for Grants and Governmental Governmental
Expenses Service Contributions Activities Activities
General RevenuesState grants and reimbursements 7,745 -- Local educational agencies 4,178,502 3,066,130
4,186,247 3,066,130
Change in net assets (653,335) 94,985
Net deficit- beginning of year, before GASB 68 expense adjustment (1,102,583) (1,093,921)
GASB 68 expense adjustment (SEE FOOTNOTE 11) 56,614 (103,647)
Net deficit - beginning of year, restated and after GASB 68 expenses adjustment (1,045,969) (1,197,568)
Net deficit - end of year (1,699,304)$ (1,102,583)$
Functions
ProgramRevenues
Aspira Bilingual Cyber Charter School Balance Sheet – Governmental Funds June 30, 2017 (With Summarized Comparative Financial Information For The Year Ended June 30, 2016)
The Notes to Financial Statements are an integral part of this statement.
8
2017 2016
Student Total TotalGeneral Activities Governmental Governmental
Fund Fund Activities Activities
Assets
Cash and cash equivalents 301,493$ --$ 301,493$ 1,067,012$ Federal subsidies receivable 123,025 -- 123,025 268,157 Prepaid expenses 16,109 -- 16,109 19,253 Due from related parties 70,965 -- 70,965 371,323
511,592$ --$ 511,592$ 1,725,745$
Liabilities
Accounts payable and accrued expenses 98,900$ --$ 98,900$ 152,074$ Accrued payroll and payroll taxes 367,243 -- 367,243 240,160 Due to School District of Philadelphia 50,832 -- 50,832 571,770Refundable advances -- -- -- 44,088 Due to related parties 519 -- 519 38,351
Total liabilitlies 517,494 -- 517,494 1,046,443
Fund Balances
Unrestricted fund balances (5,902) -- (5,902) 679,302
Total fund balances (deficit) (5,902) -- (5,902) 679,302
511,592$ --$ 511,592$ 1,725,745$
Functions
Aspira Bilingual Cyber Charter School Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets June 30, 2017
The Notes to Financial Statements are an integral part of this statement.
9
Total Fund Balances for Governmental Funds (5,902)$
Total net assets reported for governmental activities in the statement of net assets is different because:
Capital assets and GASB 68 pension liabilities used in governmental funds are not financial resources therefore, are not reported in the funds. Those assets and liabilities consist of:
Capital assets 841,265$ Net pension liability (2,165,000) Accumulated depreciation (369,667)
(1,693,402)
Total net assets of governmental activities (1,699,304)$
Aspira Bilingual Cyber Charter School Statement of Revenues, Expenditures and Changes in Fund Balances -Governmental Funds Year Ended June 30, 2017 (With Summarized Comparative Financial Information For The Year Ended June 30, 2016)
The Notes to Financial Statements are an integral part of this statement.
10
2017 2016Student Total Total
General Activities Governmental GovernmentalFund Fund Activities Activities
RevenuesLocal educational agency assistance 4,178,502$ --$ 4,178,502$ 3,066,130$ Other local sources -- 8,007 8,007 16,224 State sources 7,745 -- 7,745 -- Federal sources 606,079 -- 606,079 759,651
Excess of revenues (expenditures)over expenditures (revenues) (692,098) 6,894 (685,204) (102,212)
Other financing sources (uses)Transfer in -- (6,894) (6,894) (12,903) Transfer out 6,894 -- 6,894 12,903
6,894 (6,894) -- --
Net change in fund balances (685,204) -- (685,204) (102,212)
Fund balances (deficit) - beginning of year 679,302 -- 679,302 781,514
Fund balances (deficit) - end of year (5,902)$ --$ (5,902)$ 679,302$
Functions
Aspira Bilingual Cyber Charter School Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2017
The Notes to Financial Statements are an integral part of this statement.
11
Net Change in Fund Balances - Total Governmental Funds (685,204)$
Amounts reported for governmental activities in the statement of activities are different because:
Capital outlays 157,117 Depreciation expense (127,634)
Pension expense- GASB 68 2,386
Change in Net Assets of Governmental Activities (653,335)$
Governmental funds report capital outlays as expenditures. However, in the statement of activities, assets are capitalized and the cost is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period.
Governmental funds do not report the effect of GASB 68 to the pension expense. However, in the statement of activities, the GASB 68 pensionadjustments are reflected as current year expenditures
Aspira Bilingual Cyber Charter School Notes to Financial Statements June 30, 2017 and 2016
12
1. ORGANIZATION AND PURPOSE OF CORPORATION
Aspira Bilingual Cyber Charter School (“the School”) was incorporated as a 501(c)(3) in 2008 under the non-profit law of the Commonwealth of Pennsylvania. The School serves grades kindergarten through twelve and is located in Philadelphia, Pennsylvania. The School was established and operated under the provisions enacted by the General Assembly of the Commonwealth of Pennsylvania in 1997 and operated under a charter school contract ending on June 30, 2015. The Pennsylvania Department of Education (“PDE”) has finished their on-site audit for the renewal application and the School has been working with the PDE for the renewal of their Charter. The net assets of the School would remain with the School if its charter were not renewed. Aspira Bilingual Cyber Charter School is a charter school which has financial accountability and control over all activities related to the students’ education. The School receives funding from local, state, and federal government sources and must comply with the requirements of these funding source entities. However, the School is not included in any other governmental “reporting entity” as defined by the Governmental Accounting Standards Board (“GASB”) pronouncement. In addition, there are no component units as defined in the standards established for defining and reporting on the financial reporting entity. Aspira Bilingual Cyber Charter School began operations in December 2010. The School provides instruction in the form of interactive distance learning classrooms, one-to-one tutoring, computer-supported collaborative learning, project-based learning, and instruction tailored to each student’s individual education needs. Students access their courses online where worksheets, study material, quizzes and tests are all provided for the student to either read and complete on the computer or print for their own reference or completion by hand. One of the most unique features of the School is its full two-way immersion bilingual program in order to develop fluency in both English and Spanish. By integrating native Spanish and native English speakers together and teaching classes in both languages, it allows for all students regardless of language preference to receive a truly high quality education while learning a second language.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation The financial statements of the School have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) as applied to governmental units. The Governmental Accounting Standards Board is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The GASB has issued a codification of governmental accounting and financial reporting standards. This codification and subsequent GASB pronouncements are recognized as U.S. generally accepted accounting principles for state and local governments that have implemented the accounting pronouncement on financial reporting for state and local governments, “Basic Financial Statements and Management’s Discussion and Analysis – for State and Local Governments.” Government-wide and Fund Financial Statements The government-wide financial statements (the statement of net assets and the statement of activities) report on the School as a whole. The statement of activities demonstrates the degree to which the direct expenses of the School’s function are offset by program revenues. The fund financial statements (governmental funds balance sheet and statement of governmental funds revenues, expenditures and changes in fund balances) report on the School’s general, food services, and student activities funds.
Aspira Bilingual Cyber Charter School Notes to Financial Statements June 30, 2017 and 2016
13
Measurement Focus, Basis of Accounting and Financial Statement Presentation
Government-wide Financial Statements - The statement of net assets and the statement of activities are prepared using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred regardless of the timing of the related cash flows. Grants and similar items are recognized as soon as all eligibility requirements imposed by providers have been met. Fund Financial Statements-Governmental funds financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the School considers revenues to be available if they are collected within 60 days of the end of the current period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. The government reports the following major governmental funds: General Fund - The General Fund is the operating fund of the School and accounts for all
revenues and expenditures of the School, excluding food services and student activities.
Student Activities Special Revenue Fund - The Student Activities Special Revenue Fund is used to account for student activity revenues and expenditures.
Method of Accounting The School has adopted the provision of the accounting pronouncement on financial reporting for state and local governments. The accounting pronouncement on financial reporting for state and local governments established standards for external financial reporting for all state and local governmental entities, which includes a statement of net assets (deficit), and a statement of activities and changes in net assets (deficit). It requires the classification of net assets (deficit) into three components - invested in capital assets, net of related debt; restricted; and unrestricted. These classifications are defined as follows:
Invested in capital assets, net of related debt - This component of net assets consists of capital assets, including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. If there are significant unspent related debt proceeds at year-end, the portion of the debt attributable to the unspent proceeds are not included in the calculation of invested in capital assets, net of related debt. Rather, that portion of the debt is included in the same net assets component as the unspent proceeds. The School presently has not incurred any related debt.
Restricted - This component of net assets consists of constraints placed on net asset use through external constraints imposed by creditors such as through debt covenants, grantors, contributors, or laws or regulations of other governments or constraints imposed by law through constitutional provisions or enabling legislation. The School presently has no temporarily or permanently restricted net assets.
Unrestricted net assets - This component of net assets consists of net assets that do not meet the definition of “restricted” or “invested” in capital assets, net of related debt.
Aspira Bilingual Cyber Charter School Notes to Financial Statements June 30, 2017 and 2016
14
Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk consist of cash and cash equivalents, contributions and grants receivables and revenue. Cash and cash equivalents are held primarily at one high-credit quality financial institution. At each of the years June 30, 2017 and 2016, the School received eighty-seven percent of their total revenue from one source. Capital Assets Capital assets, which include computer equipment, are reported in the government-wide financial statements. All capital assets are capitalized at cost and updated for additions and retirements during the year. The School does not possess any infrastructure. Improvements are capitalized; the cost of normal maintenance and repairs that do not add to the value of the asset or materially extend an asset's life are not. Capital assets of the School are depreciated using the straight-line method over the useful lives of the assets. The estimated useful lives of furniture and equipment range from five to seven years. Leasehold improvements are amortized over the life of the lease. Income Tax Status The School is exempt from Federal income taxes under Section 501(c)(3) of the Internal Revenue Code. Accordingly, no provision or liability for income taxes has been recorded in the financial statements. The School had no unrecognized tax benefits at June 30, 2017 and 2016. In addition, the School had no income tax related penalties or interest for the periods reported in these financial statements.
3. CASH AND CASH EQUIVALENTS
The School considers all highly liquid debt instruments purchased with a maturity of three months or less at the time of acquisition to be cash equivalents. Deposits Custodial credit risk is the risk that in the event of a bank failure, the government’s deposits may not be returned to it. The School does have a policy for custodial credit risk. For each of the years ended June 30, 2017 and 2016, none of the School’s bank balances were exposed to custodial credit risk:
Depreciation expense for the years ended June 30, 2017 and 2016 was $127,634 and 90,734, respectively.
5. LOCAL EDUCATIONAL AGENCY REVENUE
For the auditing year, the School District of Philadelphia (“SDP”) published the initial per-pupil rates: $8,487 for regular education and $25,624 for special education based on the budget expenses from the referenced year. In March 2017, the SDP notified certain charter schools with Philadelphia resident students, that the SDP would be reducing the per pupil rates on which its charter school payments were based. SDP explained its reduction was due to the use of the “actual” expenditures instead of the “budgeted”. Based on the section $17-1725-A(2) of Charter School Law, Cyber along with other charter schools, objected to the SDP reduced funding and appealed to PDE by invoicing the Department $38,840 for reduced funding in September 2017. The School’s objection is based on the Charter School Law which mandates the use of “budgeted” expenditures for this calculation. The PDE hasn’t reimbursed the School. These amounts haven’t been accrued in the auditing year as revenue.
6. GOVERNMENT GRANTS AND REIMBURSEMENT PROGRAMS
The School participates in numerous state and federal grant and reimbursement programs, which are governed by various rules and regulations of the grantor agencies. Costs charged to the respective grant programs and reimbursement programs for retirement (pension) expense are subject to audit and adjustment by the grantor agencies; therefore, to the extent that the School has not complied with the rules and regulations governing the grants and reimbursement programs, refunds of any money received may be required and the collectability of any related receivable at June 30, 2017 and 2016 may be impaired. In the opinion of the School, there are no significant contingent liabilities relating to compliance with the rules and regulations governing the respective grants; therefore, no provision has been recorded in the accompanying financial statements for such contingencies.
Aspira Bilingual Cyber Charter School Notes to Financial Statements June 30, 2017 and 2016
16
7. LEASING ARRANGEMENTS
The School leases a portion of 4322-42 North 5th Street in Philadelphia, Pennsylvania under a 10 year operating lease from Aspira, Inc. of Pennsylvania (a related party, see Note 8). The School paid monthly rent of $20,000 for each of the years ended June 30, 2017 and 2016. Minimum annual rent for each year subsequent to June 30, 2017 is as follows:
The School is one of the five Aspira, Inc. of Pennsylvania Charter Schools. The other four schools in the group are John B. Stetson Charter School (“Stetson”), Antonia Pantoja Charter School (“Pantoja”), Eugenio Maria De Hostos Charter School (“Hostos”) and Olney Charter High School. Each school has its own Board of Trustees, consisting of six members, one of which is a parent member. Each Board member serves on all five school Boards, except for the parent members, who serve only on the Board for their child’s school. Each Board member is independent from Aspira’s Board. As described in Note 7, the School leases a portion of Aspira’s building under an operating lease expiring in the year 2023. In connection with the operation of its charter school, the School made lease payments to Aspira in the amount of and $240,000 for each of the years ended June 30, 2017 and 2016. Under the Master Service Agreement between Aspira and the School, the Organization created the central office to provide academic educational services to strengthen the School’s instruction. Additionally, Aspira provided custodian, maintenance, security, IT support, human resources, finance/accounting and other operational services. Aspira invoiced the School direct charge of actual salaries and benefits of these services rendered in the amount of $1,165,462 and $621,702 for the years ended June 30, 2017 and 2016, respectively. The School made to Aspira a service deposit of $70,182 for the aforementioned services. In addition, Aspira invoiced the School the charter management fees of $294,538 for the year ended June 30, 2017 based on the function of the District per-pupil payments. For the year ended June 30, 2017, Aspira also invoiced the School $100,305 for the transportation of students with Individualized Education Program (“IEP”) for educational services and various student activities throughout the year. All receivables and payables with related parties are unsecured, non-interest bearing and have no repayment terms. Beginning in August 2016, Aspira and the related five Schools were entered into a pooled self-funded health care plan through Aspira, administered by an independent third party administrator, to cope with the rising medical costs. For the year ended June 30, 2017, the School contributed $207,427 as medical insurance premiums to the plan.
Aspira Bilingual Cyber Charter School Notes to Financial Statements June 30, 2017 and 2016
17
Under the National Lunch School Program, the School employed food service staff who provided administrative services to the related entities. For the year ended June 30, 2017, Cyber invoiced the School $12,474.
2017 2016Receivable Payable Receivable Payable
Aspira Inc. of Pennsylvania 70,182$ 519 371,323$ 38,351Eugenio Maria de Hostos Charter School 783 -- -- --
70,965$ 519$ 371,323$ 38,351$
9. COMMITMENTS AND CONTINGENCIES
The School is a guarantor of a $5,005,005 mortgage loan issued to Aspira Community Enterprises, Inc. for the acquisition and construction loan associated with the building of the School. The mortgage loan matured October 1, 2016 and is currently extended through October 31, 2017. Aspira is negotiating with the banks for an extension on this loan, that has entered into forbearance. The debt is collateralized by property known as 4101 North American Street, Philadelphia, Pennsylvania, owned by Aspira, Community Enterprise, Inc., including all fixtures and leases associated with the properties. The balance of the loan was $4,354,757 and $4,447,227 for the years ended June 30, 2017 and 2016, respectively. The School’s revenue has been included in the security interest of a $1,742,573 mortgage loan issued to Aspira Community Enterprises, Inc. for the acquisition and construction loan associated with the building of the School The mortgage loan matures August 2018. The balance of the loan was $1,061,735 and $1,239,345 for the years ended June 30, 2017 and 2016, respectively. The School’s revenue has been included in the security interest of a $12,750,000 note payable issued to ACE/Dougherty LLC for the acquisition, construction and renovation associated with the building of another related school. The mortgage loan matured October 1, 2016 and is currently extended through October 31, 2017. Aspira is negotiating with the banks for an extension on this loan, that has entered into forbearance. The debt is collateralized by property known as the Dougherty School in Philadelphia, Pennsylvania, owned by ACE/Dougherty LLC including all fixtures and leases associated with the properties. The balance of the loan was $8,154,432 and $8,496,247 for the years ended June 30, 2017 and 2016, respectively. The School’s revenue has been included in the security interest of a $800,215 line-of-credit loan issued to Aspira. The loan matured October 1, 2016 and is currently extended through October 31, 2017. Aspira is negotiating with the banks for an extension on this loan, The balance of the loan was $800,215 as of June 30, 2017. The School is involved in legal proceedings arising in the ordinary course of business. In the opinion of management, although the outcome of any legal proceedings cannot be predicted, ultimate liability of the School in connection with its legal proceedings will not have a material adverse effect on the financial position or activities of the School. In addition, any known liabilities resulting from these legal proceedings have been reflected in these financial statements. The School is the recipient of funds through the School District of Philadelphia and Commonwealth of Pennsylvania. These funds are subject to periodic audits and reviews by the School District of Philadelphia and the Commonwealth of Pennsylvania. The School has been notified by the Auditor General of the Commonwealth of Pennsylvania that they will be conducting a limited review of the School for the period of
Aspira Bilingual Cyber Charter School Notes to Financial Statements June 30, 2017 and 2016
18
July 1, 2013 to June 30, 2016. No provision has been made in these financial statements for any liability that may result from these limited reviews. The School is exposed to various risks of loss related to torts: theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The School carries commercial insurance for such risks. There have been no settled claims resulting from these risks which have exceeded commercial insurance coverage.
10. PENSIONS
Aspira Bilingual Cyber Charter School offers two (2) retirement plan options, the Public School Employees Retirements System (“PSERS”) and a 403b plan. New employees are not members of the PSERS retirement plan are automatically enrolled in the 403b Plan. New employees that were participants in PSERS can opt for the 403b Plan or PSERS. Existing employees who are participants in the PSERS Plan remain in that plan. The 403b plan is a defined contribution plan. Employees in the 403b plan contribute a mandatory 5 percent deferral amount and can contribute a higher percentage up to the maximum dollar amount allowed by the IRS. The School provides matching contributions dollar for dollar up to 5 percent of compensation based on payroll compensation. Deferrals over 5 percent of salary are not matched. The 403b Plan has an immediate vesting schedule. The plan offers a diversified lineup of employee directed investment options. The default investment option, if one is not selected at the time of enrollment, is a Target Date Fund corresponding with the employee’s age. Investment options can be changed at any time by the employee. Employer contributions to the 403b plan for the fiscal years ended June 30, 2017 and 2016 was $88,216 and $61,779, respectively. General Information About the Pension Plan Plan Description PSERS is a governmental cost sharing multi-employer defined pension plan that provides retirement benefits to public school employees of the Commonwealth of Pennsylvania. The members eligible to participate in the System include full-time public school employees, part-time hourly public school employees who render at least 500 hours of service in the school year, and part-time per diem public school employees who render at least 80 days of service in the school year in any of the reporting entities in Pennsylvania. PSERS issues a publicly available financial report that can be obtained at www.psers.state.pa.us. Benefits Provided PSERS provides retirement, disability, and death benefits. Members are eligible for monthly retirement benefits upon reaching (a) age 62 with at least 1 year of credited service; (b) age 60 with 30 or more years of credited service; or (c) 35 or more years of service regardless of age. Act 120 of 2010 (“Act 120”) preserves the benefits of existing members and introduced benefit reductions for individuals who become new members on or after July 1, 2011. Act 120 created two new membership classes, Membership Class T-E (“Class T-E”) and Membership Class T-F (“Class T-F”). To qualify for normal retirement, Class T-E and Class T-F members must work until age 65 with a minimum of 3 years of service or attain a total combination of age and service that is equal to or greater than 92 with a minimum of 35 years of service. Benefits are generally equal to 2 percent or 2.5 percent depending upon membership class, or the member’s final average salary (as defined in the Code) multiplied by the number of years of credited service. For members whose membership started prior to July 1, 2011, after completion of five years of service, a member’s right to the defined benefits is vested and early retirement benefits may be elected. For Class T-E and Class T-F members, the right to benefits is vested after ten years of service.
Aspira Bilingual Cyber Charter School Notes to Financial Statements June 30, 2017 and 2016
19
Participants are eligible for disability retirement benefits after completion of five years of credited service. Such benefits are generally equal to 2 percent or 2.5 percent, depending upon membership class, of the member’s final average salary (as defined in the Code) multiplied by the number of years of credited service, but not less than one-third of such salary nor greater than the benefit the member would have had at normal retirement age. Members over normal retirement age may apply for disability benefits. Death benefits are payable upon the death of an active member who has reached age 62 with at least one year of credited service (age 65 with at least three years of credited service for Class T-E and Class T-F members) or who has at least five years of credited service (ten years for Class T-E and Class T-F members). Such benefits are actuarially equivalent to the benefit that would have been effective if the member had retired on the day before death. Member contributions are as follows: -Active members who joined the System prior to July 22, 1983, contribute at 5.25 percent (Membership Class T-C) or at 6.5 percent (Membership Class T-D) of the member’s qualifying compensation. -Members who joined the System on or after July 22, 1983, and who were active or inactive as of July 1, 2001, contribute at 6.25 percent (Membership Class T-C) or at 7.5 percent (Membership Class T-D) of the member’s qualifying compensation. -Members who joined the System after June 30, 2001, contribute at 7.5 percent (automatic Membership Class T-D). For all new hires and for members who elected Class T-D membership, the higher contribution rates began with service rendered on or after January 1, 2002. -Members who joined the System after June 30, 2011, automatically contribute at the Membership Class T-E rate of 7.5 percent (base rate) of the member’s qualifying compensation. All new hires after June 30, 2011, who elect Class T-F membership, contribute 10.3 percent (base rate) of the member’s qualifying compensation. Membership T-E and Class T-F are affected by “shared risk” provision in Act 120 of 2010 that in future fiscal years could cause the Membership Class T-E contribution rate to fluctuate between 7.5 percent and 9.5 percent and Membership Class T-F contribution rate to fluctuate between 10.3 percent and 12.3 percent. Employer Contributions The School’s contractually required contribution rate for fiscal year ended June 30, 2017 was 30.3 percent, actuarially determined as an amount that, when combined with employee contributions, is expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Contributions to the pension plan for the fiscal years ended June 30, 2017 and 2016 were $52,386 and $127,300, respectively. As a result of the changes in the net pension liability the GASB 68 income and expense for the years ended June 30, 2017 and 2016 was $56,614 and $103,647, respectively.
11. PENSION LIABILITIES, EXPENSE, AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES RELATED TO PENSION
At June 30, 2017, the School reported a liability of $1,685,000 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by rolling forward the System’s total pension liability as of June 30, 2015 and June 30, 2016. The School’s proportion of the net pension liability was calculated utilizing
Aspira Bilingual Cyber Charter School Notes to Financial Statements June 30, 2017 and 2016
20
the employer’s one-year reported covered payroll as it relates to the total one-year reported covered payroll. At June 30, 2016, the School’s proportion was 0.0034 percent, which was a decrease of 0.000022 from its proportion measured as of June 30, 2015. For the year ended June 30, 2017, the employer recognized pension expense of $50,000, at June 30, 2017, the employer reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflowsof Resources of Resources
Net difference between projected and actual investment earnings 94,000$ --$
Changes in proportions 171,000 792,000
Difference between expected and actual experience -- 14,000
Changes of assumptions 61,000 --
326,000$ 806,000$
$326,000 reported as deferred outflows of resources related to pensions resulting from the School’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Actuarial Assumptions The total pension liability as of June 30, 2016 was determined by rolling forward the System’s total pension liability as of the June 30, 2015 actuarial valuation to June 30, 2016 using the following actuarial assumptions, applied to all periods included in the measurement:
Actuarial cost method – Entry Age Normal – level percent of pay
Investment return – 7.25 percent, includes inflation at 2.75 percent
Salary increases – Effective average of 5.50 percent, which reflects an allowance for inflation of 3.00 percent, real wage growth of 1 percent and merit or seniority increases 2.50 percent
Mortality rates were based on the RP-2000 Combined Healthy Annuitant Tables (male and female) with age set back 3 years for both males and females. For disabled annuitants the RP-2000 Combined Disabled Tables (male and female) with age set back 7 years for males and 3 years for females.
Aspira Bilingual Cyber Charter School Notes to Financial Statements June 30, 2017 and 2016
21
The actuarial assumptions used in the June 30, 2016 valuation were based on the experience study that was performed for the five-year period ending June 30, 2010. The recommended assumption changes based on this experience study were adopted by the Board at its March 11, 2011 Board meeting, and were effective beginning with the June 30, 2011 actuarial valuation. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges o expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The pension plan’s policy in regard to the allocation of invested plan assets is established and may be amended by the Board. Plan assets are managed with a long-term objective of achieving and maintaining a fully funded status for the benefits provided through the pension.
Long-TermTarget Expected Real
Asset Class Allocation Rate of Return
Public markets global equity 22.5% 4.8%Pirvate markets (equity) 15.0% 6.6%Private real estate 12.0% 4.5%Global fixed income 7.5% 2.4%U.S. long treasuries 3.0% 1.4%TIPS 12.0% 1.1%High yield bonds 6.0% 3.3%Cash 3.0% 0.7%Absolute return 10.0% 4.9%Risk party 10.0% 3.7%MLPs/Infrastructure 5.0% 5.2%Commodities 8.0% 3.1%Financing (LIBOR) -14.0% 1.1%
100%
The above was the Board’s adopted asset allocation policy and best estimates of geometric real rates of return for each major asset class as of June 30, 2016. Discount Rate The discount rate used to measure the total pension liability was 7.25 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate and that contribution from employers will be made at contractually required rates, actuarially determined. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Aspira Bilingual Cyber Charter School Notes to Financial Statements June 30, 2017 and 2016
22
Sensitivity of the School’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability, calculated using the discount rate of 7.25 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (6.25 percent) or 1-percentage point higher (8.25 percent) than the current rate:
School's proportionate share of the net pension liability 2,061,000$ 1,685,000$ 1,369,000$
Pension Plan Fiduciary Net Position Detailed information about PSERS’ fiduciary net position is available in PSERS’ Comprehensive Annual Financial Report which can be found on the System’s website at www.psers.state.pa.us.
12. NEW ACCOUNTING PRONOUNCEMENT
In August 2016, the FASB issued ASU 2016-14 – Not-for-profit Entities (Topic 958) – Presentation of Financial Statements of Not-for-profit Entities. ASU 2016-14, which is effective for fiscal years beginning after December 15, 2017 with early adoption permitted will require a change to two areas of not-for-profit accounting and significant new financial statement presentation and disclosure requirements. Under ASU 2016-14 (“the ASU”), underwater funds will be accounted for within net assets with donor restrictions and not within net assets without donor restrictions, as is the current practice. In addition, the ASU eliminates the accounting policy election to release donor-imposed restrictions over the useful life of donated property and equipment when the donor does not explicitly specify the period of time the property must be used. Instead, entities will be required to relieve the donor’s restrictions at the time the asset is placed in service. The ASU also changes the presentation and disclosure requirements of not-for-profit entities in the following areas: expense disclosures, display of net asset classes, cash flow presentation, quantitative and qualitative liquidity disclosures and presentation of investment returns. The School is currently evaluating the impact these changes will have on its future financial statements.
13. SUBSEQUENT EVENTS
The School has evaluated subsequent events occurring after the statement of net assets date through the date of October 25, 2017 which is the date the financial statements were available to be issued. Based on this evaluation, the School has determined that no subsequent events have occurred which require disclosure in or adjustment to the financial statements.
SUPPLEMENTARY INFORMATION
Aspira Bilingual Cyber Charter School Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Governmental Funds Years Ended June 30, 2017 and 2016
See Independent Auditors’ Report. 23
Over
(Under)Actual Final
Original Final Amounts Budget
RevenuesLocal educational agency assistance 4,602,536$ 4,602,536$ 4,178,502$ (424,034)$ Other local sources -- -- 8,007 8,007 State sources -- -- 7,745 7,745 Federal sources 536,627 536,627 606,079 69,452
Net change in fund balances 1,114,438 1,114,438 (685,204) (1,799,642)
Fund balances - beginning of year (Footnote 12) -- -- 679,302 --
Fund balances (deficit) - end of year 1,114,438$ 1,114,438$ (5,902)$ (1,799,642)$
Budget
24
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS INDEPENDENT AUDITORS’ REPORT To the Board of Trustees, Aspira Bilingual Cyber Charter School: We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund of Aspira Bilingual Cyber Charter School (the “School”) and the related notes to the financial statements, as of and for the year ended June 30, 2017, which collectively comprises the School’s basic financial statements and have issued our report thereon dated October 25, 2017. Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered Aspira Bilingual Cyber Charter School’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Aspira Bilingual Cyber Charter School’s internal control. Accordingly, we do not express an opinion on the effectiveness of Aspira Bilingual Cyber Charter School’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given those limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
25
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Aspira Bilingual Cyber Charter School’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
October 25, 2017
Image description. Logo End of image description.
Executive Summary
BSE Compliance Monitoring Reviewof the
ASPIRA Bilingual Cyber CS
PART I
SUMMARY OF FINDINGS
A. Review Process
Prior to the Bureau's monitoring the week of January 8, 2013, the ASPIRA Bilingual Cyber CS was
formally notified of the dates the onsite review would be conducted. Notice and invitation to comment
was also provided to the Local Task Force on Right-to-Education. The charter school was informed of
its responsibility to compile various reports, written policies, and procedures to document compliance
with requirements.
While onsite, the monitoring team employed a variety of techniques to gain an in depth understanding of
the charter school's program operations. This included:
• Interviews of charter school administrative and instructional personnel
• Review of policies, notices, plans, outcome and performance data, special education forms and
formats, and data reports used and compiled by the charter school (Facilitated Self-Assessment)
• Comprehensive case studies (including classroom observations, interviews of parents, students, and
general and special education teachers, and student file reviews).
B. General Findings
In reaching compliance determinations, the Bureau of Special Education (BSE) monitoring teams apply
criteria contained in federal and state special education regulations. Specifically, these are:
• Individuals with Disabilities Education Improvement Act of 2004
• 22 Pa. Code Chapter 711
• 34 CFR Part 300
This report focuses on compliance with regulatory requirements and also contains descriptive
information (such as interview and survey results) intended to provide feedback to assist in program
planning.
C. Overall Findings
1. FACILITATED SELF ASSESSMENT (FSA)
The team reviewed the FSA submitted by the charter school and conducted onsite verification
activities of the information submitted in the FSA. The onsite verification activities included
review of policies, notices, procedures, and file reviews.
Executive Summary for ASPIRA Bilingual Cyber CS
FSA
In
Compliance
Out of
Compliance
Assistive Technology and Services; Hearing Aids 2 0
Positive Behavior Support Policy 1 0
Child Find (Annual Public Notice and GeneralDissemination Materials)
1 0
Confidentiality 1 0
Dispute Resolution (Due process hearing decisionimplementation)
0 0
Exclusions: Suspensions and Expulsions(Procedural Requirements)
0 0
Independent Education Evaluation 1 0
Least Restrictive Environment (LRE) 1 0
Provision of Extended School Year Services 1 0
Provision of Related Service Including PsychologicalCounseling
1 0
Parent Training 1 0
Public School Enrollment 1 0
Surrogate Parents (Students Requiring) 1 0
Personnel Training 1 0
Intensive Interagency Approach 0 0
Summary of Academic Achievement and FunctionalPerformance/Procedural Safeguard Requirements forGraduation
0 0
Disproportionate Representation that is the Result ofInappropriate Identification
1 0
IMPROVEMENT PLAN REQUIRED Yes No
Effective use of Dispute Resolution 0 0
Graduation Rates (SPP) 0 0
Dropout Rates (SPP) 0 0
Suspensions (Rates) 0 0
Least Restrictive Environment (LRE) (SPP) 0 1
Participation in PSSA and PASA (SPP) 0 0
Participation in Charter-Wide Assessment 0 1
Public School Enrollment 0 1
Disproportionate Representation that is the Result ofInappropriate Identification
0 1
2. FILE REVIEW (Student case studies)
The education records of randomly selected students participating in special education programs
were studied to determine whether the charter school complied with essential requirements.
The status of compliance of the ASPIRA Bilingual Cyber CS is as follows:
Executive Summary for ASPIRA Bilingual Cyber CS
Sections of the
FILE REVIEW
In
Compliance
Out of
Compliance NA
Essential Student Documents Are Present and WerePrepared Within Timelines
63 13 84
Evaluation/Reevaluation: Process and Content 229 32 519
Individualized Education Program: Process and Content 411 71 318
Procedural Safeguards: Process and Content 107 10 3
TOTALS 810 126 924
3. TEACHER AND PARENT INTERVIEWS
Interviews were conducted with parents and teachers of students selected by the BSE for the
sample group. The goal is to determine if the charter school involves parents and professionals
in required processes (e.g., evaluation, IEP development), whether programs and services are
being provided, and whether the charter school provides training to enhance knowledge. Parent
and teacher satisfaction with the special education program is also generally assessed.
# Yes
Responses
# No
Responses
# of Other
Responses
Program Implementation: General Ed Teacher Interviews 244 10 85
Program Implementation: Special Ed Teacher Interviews 255 21 177
Program Implementation: Parent Interviews 115 25 98
TOTALS 614 56 360
4. STUDENT INTERVIEWS
Results of the student interviews are reflected on the Charter School Corrective Action
Verification/Compliance and Improvement Planning document.
5. CLASSROOM OBSERVATIONS
Observations are conducted in classrooms of students selected by the BSE for the sample group.
# Yes
Responses
# No
Responses
# of Other
Responses
Classroom Observations 0 0 0
6. EDUCATIONAL BENEFIT REVIEW
In
Compliance
Out of
Compliance
Educational Benefit Review X
PART II
CORRECTIVE ACTION PROCESS
PART I of this report presented an overall summary of findings. In the Appendix to the report, we have
provided the detailed findings for each of the criteria of the compliance monitoring document, i.e. FSA, File
Reviews, Interviews and Classroom Observations. The detailed report of findings includes:
Executive Summary for ASPIRA Bilingual Cyber CS
• Criteria Number
• Statements of all requirements
• Whether each requirement was met, not met, not applicable or other
• Statements of corrective action required for those criteria not met. Criteria not met that require corrective
action by the charter school are gray-shaded.
Charter schools are advised that in accordance with requirements of the Individuals with DisabilitiesEducation Act, all noncompliance must be corrected as soon as possible but in no case later than one yearfrom the date of the monitoring report. The BSE is required to verify timely correction of noncompliance,
and must report annually to the federal government and the public on this requirement.
Upon receipt of this report, the charter school should review the corrective action and improvement planning
required. The report is formatted so that findings from all components of the monitoring are consolidated by
topical area. The report lists the finding, and whether corrective action is required. For certain types of
findings, corrective action will be prescribed, and will not vary from charter school to charter school. For
example, if the finding is that the charter school lacks a specific required policy, it is reasonable to have the
BSE prescribe a standardized remedy and timeline for correcting this deficiency. However, the majority of
corrective action activities will be individually designed by the charter school based on their own unique
circumstances and goals. Consistent with IDEA's general supervision requirements for states, BSE must
approve all proposed corrective action.
With respect to the File Review, because students were selected at random, findings are generalized to the
entire population of students with disabilities. During the corrective action review, the BSE Advisor will
select students at random and will review updated data, i.e. records that were developed subsequent to the
monitoring. Consequently, the charter school should approach corrective action on a systemic basis. As
indicated above, the charter school is also required to correct student specific noncompliance identified during
monitoring under the ICAP process. If there has been a finding of noncompliance in the Educational Benefit
Review component, the individual students are identified to the charter school and, because of the significance
of the provision of a free appropriate public education (FAPE) to these students; the charter school must take
immediate corrective action.
The BSE Adviser will schedule an onsite visit with the charter school within 60 days following issuance of
the monitoring report. The BSE Adviser, charter school, and PaTTAN staff will develop a Charter School
Corrective Action Verification/Compliance and Improvement Plan. PaTTAN and IU staff is available to
assist the charter school.
Upon conclusion of the corrective action process, the charter school will be notified of its successful
This is the 20172018 CAV for ASPIRA Bilingual Cyber CS
Topic: Title I Component IV: Parent and Family Engagement LEA Parent andFamily Engagementpolicy, parentmeeting agenda andsign in sheet andevidence ofdistribution,examples websiteposting, handbook,mailing, etc.
CA Due: 9/6/2018
Ext Date:
Closed:
CA Not Required:
Issue: 1. LEA has a written Parent and Family Engagement policy and evidence that it is reviewed and updatedannually. Required Components:
• states how the LEA involves parents in the joint development of the Title I Plan (Title I Application) • states how the LEA provides the coordination, technical assistance, and other support necessary to assist and
build the capacity of all participating schools within the LEA in planning and implementing effective parentinvolvement and described in Section 1118(e) parent and family involvement activities to improve studentacademic achievement and school performance
• states how the LEA coordinates and integrates parent and family engagement strategies under this part withparent and family engagement strategies, with other relevant Federal, State, and local laws and programs
• states how the LEA conducts with parents an annual evaluation of the content and effectiveness of the parent andfamily engagement policy in improving the academic quality of all school served under this part, includingidentifying –
barriers to greater participation in activities, the needs of parents and family members to assist with the learning of their children, including engaging with
school personnel and teachers Strategies to support successful school and family interactions
• use the findings of the evaluation to design evidence based strategies for more effective parental involvement,and how to revise, if necessary, the parent and family engagement policies
• involve parents in the activities of the Title I schools
Corrective Action:The LEA will submit a copy of LEA Parent and Family Engagement Policy, agendas and sign in
sheets to demonstrate the policy was reviewed in 201718, and method of distribution.
District Comments
5/9/2018 11:08:23 AMGrants Manager Mildred BermontyEvidence will be provided on the day of the audit.
Monitor Comments
6/4/2018 7:38:10 AMMonitor Steve MarroneNo documentation demonstrating Parent Input was availablefor the relevant year.
Topic: Title IV, Part A Component I. Title IV, Part A Student Support and Academic Enrichment Grants Meeting notices,agenda, signinsheets
CA Due: 9/6/2018
Ext Date:
Closed:
CA Not Required:
Issue: 1. The LEA involves stakeholders (parents, school staff, and community members) in the planning of theTitle IV application and activities.
Corrective Action:The LEA will submit meeting notices or agenda and signin sheets to demonstrate
stakeholder engagement.
Monitor Comments
6/4/2018 8:08:23 AMMonitor Steve MarroneEvidence provided demonstrated a Needs Assessmentconducted after the initial Application, 10.2.17.
Topic: Title I: School Level Aspira Bilingual Cyber School Component I: Appropriately State Certified List ofparaprofessionals &their qualifications:HS Diploma plus 2years of college (48credits), AA Degreeor local assessment
CA Due: 9/6/2018
Ext Date:
Closed:
CA Not Required:
Issue: 1. All instructional paraprofessionals working in a Title I and Title II program are appropriately certified.
Corrective Action:The LEA will submit a list of paraprofessionals and their qualifications: HS Diploma plus
2 years of college (48 credits), AA Degree or local assessment
Monitor Comments
6/4/2018 8:15:18 AMMonitor Steve MarroneOnly 1 of 3 current Paraprofessionals on Staff meets thecriteria.
Topic: Title I: School Level Aspira Bilingual Cyber School Component III: Parent and Family Engagement School Parent andFamily Engagementpolicy, Parentmeeting agenda &signin sheets, andmethod ofdistribution
CA Due: 9/6/2018
Ext Date:
Closed:
CA Not Required:
Issue: 1. 1. Schools receiving Title I funds shall jointly develop with, and distribute to, Title I parents and familymembers a written parent and family engagement policy. Parents shall be notified of the policy in anunderstandable and uniform format and to the extent practicable in a language the parents can understand. Thepolicy shall be made available to the local community and updated periodically to meet the changing needs ofparents and the school. Required components:
Convene an annual meeting at a convenient time, to which all Title I parents shall be invited and encouragedto attend, to inform parents of their school’s Title I program and to explain the requirements of Title I andthe right of parents to be involved.Offer a flexible number of meetings, such as meetings in the morning or evening, and may provide, withTitle I funds, transportation, child care, or home visits, as such services relate to parental involvementInvolve parents, in an organized ongoing, and timely way, in the planning, review, and improvement of theTitle I program, including the planning, review, and improvement of the school parent and familyengagement policy and the joint development of the schoolwide program plan, if applicable, except that is aschool has a process in place in process for involving parents in the joint planning and design of the school’sprograms, the school may use the process, if such process included an adequate representation of Title I.Provide Title I parents
Provide Title I parentsTimely information about Title I programsA description and explanation of the curriculum in use at the school, the forms of academicassessment used to measure student progress, and the achievement levels of the challenging Stateacademic standards
If requested by parents, opportunities for regular meetings to formulate suggestions and toparticipate, as appropriate, in decisions relating to the education of their children, and respond to anysuggestions as soon as practicably possible.
If the schoolwide plan is not satisfactory to Title I parents, submit any parent comments on the plan whenthe school makes the plan available to the LEA. (Only applies to Schoolwide schools).Shall educate teachers, specialized instructional support personnel, and other staff, with the assistance ofparents, in the value and utility of contributions of parents and family members, and in how to reach out to,communicate with, and work with parents and family members as equal partners, implement and coordinateparent programs, and build ties between parents and family members and the school.Describes how the school will provide assistance to parents in understanding the State's academic contentstandards and student achievement standards, local academic assessments and how to monitor a child'sprogress and work with teachers to improve the achievement of their children.States that a schoolparent compact was jointly developed with parents and the compact outlines howparents, the entire school staff and students will share in the responsibility for improved studentachievement.Describes how the school provides materials and training to help parents to work with their children toimprove their children's achievement, such as literacy training and using technology, as appropriate, tofoster parent involvement.States how the school will, to the extent feasible and appropriate, coordinate, and integrate parentinvolvement programs and activities with other Federal, State, and local programs including public preschoolprograms and conduct other activities, that encourage and support parents and family members in morefully participating in the education of their children.States how the school will ensure that information related to school and parent programs, meetings, andother activities is sent to the parents and family members of participating children in a format and to theextent practicable, in a language the parents and family members can understand.States how the school, to the extent practicable, will provide opportunities for the informed participation ofparents and family members (including parents and family members who have limited English proficiency,parents and family members with disabilities, and parents and family members of migratory children).
Corrective Action:
The LEA will submit a copy of their school building parent and family engagement policy
for each Title I building not in compliance, agendas and sign in sheets to demonstrate
parent and family input, and method of distribution.
Monitor Comments
6/4/2018 8:16:25 AMMonitor Steve MarroneEvidence of Parent Input was not available.
Topic: Title I: School Level Aspira Bilingual Cyber School Component III: Parent and Family Engagement Schoolparentcompact, Staffparent meetingagenda, signinsheets and method ofdistribution
CA Due: 9/6/2018
Ext Date:
Closed:
CA Not Required:
Issue: 3. 3. Each Title I school shall jointly develop with parents of Title I children a school parent compact thatoutlines how parents, the entire school staff, and students will share the responsibility for improved studentacademic achievement and the school and parents will build and develop a partnership to help children achieve theState’s high standards. The compact shall
describe the school’s responsibility to provide highquality curriculum and instruction in a supportive andeffective learning environment that enables Title I children to meet the State academic standards, and the ways inwhich each parent will be responsible for supporting their children’s learning; volunteering in their child’sclassroom, and participating as appropriate, in decisions relating to the education of their children and positive useof extracurricular time, and
address the importance of communication between teachers and parents on an ongoing basis through at aminimum: parentteacher conferences in elementary schools, at least annually, during which the compact shall bediscussed as the compact relates to the individual child’s achievement; frequent reports to parents on theirchildren’s progress; reasonable access to staff, opportunities to volunteer and participate in their child’s class, andobservation of classroom activities; and ensuring two way meaningful communication between family members andschool staff, and to the extent practicable, in a language that family members can understand.
Corrective Action:The LEA will submit the updated schoolparent compact, agendas and sign in sheets to
demonstrate it was updated with parent and family input, and the method of distribution
for each Title I School found to be out of compliance.
Monitor Comments
6/4/2018 8:17:11 AMMonitor Steve MarroneEvidence of Parent Input was not available.
Topic: Title I: School Level Aspira Bilingual Cyber School Component VI: Fiscal Requirements Semiannual timecertifications
CA Due: 9/6/2018
Ext Date:
Closed:
CA Not Required:
Issue: 1. The LEA and Title I school maintain semiannual certifications for all employees funded 100% from asingle cost objective
Corrective Action:The LEA will submit a copy of the semiannual certifications for staff that work 100% of
there time on a single cost objective or staff that work on multiple cost objectives but
have a consistent schedule for each Title I School found to be out of compliance.
Monitor Comments
6/4/2018 8:21:02 AMMonitor Steve MarroneAlthough documentation was available, this requirementwas not 'semiannual' in nature; dated May, 2018.
