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Sharing Charter School Best Practices

APRIL 3-6, 2013, LONG BEACH, CAAPRIL 3-6, 2013, LONG BEACH, CA

Sharing Charter School Sharing Charter School Best PracticesBest Practices

Financial WorkshopSession ID: FIN23Friday, April 5, 20132:45 – 3:45 p.m.

These materials have been prepared for the CASBO Annual Conference Workshops. They have not been reviewed by State CASBO for approval, so therefore are not an official statement of CASBO.

2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

A Pathway to Happiness

Or, more accurately:

How Oversight Can Work Well How Oversight Can Work Well for both Districts and Chartersfor both Districts and Charters

Keith Butler, Coronado Unified School DistrictTeresa Kapellas, Alameda County Office of Education

Outline

Oversight requirements in Ed. Code

What has worked in oversight, from district and charter perspectives

Three sets of oversight guidelines

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Requirements in Ed. Code§47604(c)•

An authority that grants a charter…to be operated by, or as, a nonprofit public benefit corporation is not liable for the debts or obligations of the charter school…if the authority has complied with all oversight responsibilities required by law, including, but not limited to, those required by §47604.32 and subdivision (m) of §47605.

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Requirements in Ed. Code§47604.32(a) Identify at least one contact person

(b) Visit each charter school at least annually

(c) Ensure that each charter school complies with all reports required by law

(d) Monitor the fiscal condition of each charter school

(e) Provide timely notification to CDE if:

(1) A renewal of the charter is granted/denied

(2) The charter is revoked

(3) The charter school will cease operation for any reason

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Required Reports

Annual Budget - July 1st

First Interim Report -

Dec. 15th (as of 10/31) Second Interim Report –

Mar. 15th (as of 1/31) Unaudited Actuals - Sept. 15th

Audit Report - Dec. 15th

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Revocation

§47607(c) The following can lead to revocation:

1) Committed a material violation of any of the conditions, standards, or procedures in the charter

2) Failed to meet or pursue any of the pupil outcomes identified in the charter

3) Failed to meet generally accepted accounting principles, or engaged in fiscal mismanagement

4) Violated any provision of law

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What has worked in Charter Oversight? Communication, Communication, Communication!

Building Relationships

Clear Expectations

Clear MOUs, including Special

Education and Oversight

Communication formal informal

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Guidelines for charter oversight

Examples, not templates

Financial-only

County Office Authorizers’ Toolkit

Modified SBE Oversight Guidelines

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Financial-only Guidelines

Modeled on SDCOE oversight of districts at each major reporting period

Deficit Spending, ADA, Actuals (Revenues and Expenses), Reserve Percentages, MYP, Cash Flow

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Financial-only Guidelines

What are major issues you have seen, or heard, regarding charter financials?

How should financials be monitored?

What are district/charter expectations about reserve requirements?

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Financial-only GuidelinesTwo major issues: Cash Flow—suggestions:

Current year plus 12 months Be sure deferrals are accurate; get details on any

RANs or loans MYP—suggestions:

Check assumptions: ADA, $/ADA, contingencies Prior year actuals, current year budget, current YTD,

current year est. actuals— all leading to two years of MYP estimates

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County Office Authorizers’ ToolkitCategories to check for evidence, yes/no format

1 – General Requirements 2 – Fiscal and Business Operations3 – Educational Performance4 – Facilities5 – Governance6 – Personnel7 – Student Services

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Desk Audit Request copies of

documents to be sent to your office

Request updated critical information annually

Communicate an expectation that certain information be available on the school’s website

Site Visit Some things…you

just have to see for yourself!

Teachers teaching Kids learning Boards meeting Facility

cleanliness/safeness

Review Options

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Authorizers’ Toolkit

Questions for you: How often do you make a site visit?

What do you ask for in advance of the site visit?

What documentation do you prepare eachyear regarding oversight activities?

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Oversight & Monitoring Scenario 1

A charter is being visited, and you ask for documentation of attendance accounting. What are you expecting to see?

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Oversight & Monitoring Scenario 2

A charter is in its third year of operation. Thinking about renewal and the educational program, what would you ask for in advance of the renewal petition submission?

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Oversight & Monitoring Scenario 3

A parent contacts the district saying that his/her student has been expelled from a charter school. The parent asks about the appeals process and where the student can go to school.

Where would you look for information?

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Modified SBE Guidelines

Desk Review/Site Review suggestions

Scale of Good/Satisfactory/Unsatisfactory/Poor

1 – Governance and Organizational Management

2 – Educational Performance and Ongoing Assessment

3 – Fiscal Operations

4 – Student Services

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Oversight & Monitoring Scenario 4

A charter has not specified in its petition that it will follow the Brown Act. When conducting a site visit, the district representative interviews a Board member and hears about Board decisions made during a party at the Board member’s home. What should the district do?

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Oversight & Monitoring Scenario 5

A charter is asked to provide evidence of compliance with liability and risk management requirements. What evidence should be reviewed/provided?

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Oversight & Monitoring Scenario 6

Your district superintendent asks if the charter school “knows its budget numbers.” Whom, and what, would you ask on a desk audit/site visit?

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Oversight & Monitoring Scenario 7

Assume that a Desk Review and Site Review have been completed. If the district and the charter are using the Modified SBE Guidelines, how should a grade be calculated for each major section, and overall?

For what purpose should that gradebe used?

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Thank you:

To you for your interest, and for coming to this workshop!

To our colleagues at County Offices for their help and support!

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