1. Charter School Fiscal Management Fiscal Year 2010/11 Presented by: Fiscal Crisis and Management Assistance Team (FCMAT) California School Information Services (CSIS) Schools Legal Services

2. Welcome and Introductions Jim Cerreta, CPA, CFE Fiscal Intervention Specialist, FCMAT Bill Hornback Attorney, Schools Legal Services Michelle Plumbtree Chief Management Analyst, FCMAT Gary Quiring Implementation Specialist, FCMAT/CSIS

3. Explanation of Workshop Binder

4. Did you Know? Nationwide, California has the largest number of charter schools serving the largest number of students. There are currently more than 800 charter schools with more than 285,000 students enrolled. Charter schools, though successful in raising student achievement, are closing their doors due to their lack of knowledge about managing the business and fiscal requirements of their schools. CDE data shows nearly two-thirds (65%) of all charter schools that closed since 2004 reported positive trends in API growth and failed for reasons unrelated to successful academic performance. Both the authorizers with oversight responsibility and the charter schools they serve need to better understand and meet their respective responsibilities.

5. What Can We Do? Make sure there is an understanding that: Effective financial management of charter school resources is as important to the success of a charter school as the strength of the curriculum or the dedication of its founders. Collaborative efforts between public schools and charter schools are in the best interest of all of our students; it is essential to understand each other’s regulatory and reporting environments. The need for effective site-based financial management at charters has never been greater. Sharing best practices to build capacity for effective financial management is a win-win situation.

6. What Is A Charter School? Presented by: Bill Hornback, Counsel, Schools Legal Service Michelle Plumbtree, Chief Management Analyst, FCMAT

7. What Is A Charter School? A public school that operates independently of an existing school district structure and which may provide instruction in any grade or grades, kindergarten through 12. Usually created or organized by a group of teachers, parents, community leaders, a community-based organization, or the school district. Exempt from most laws and regulations governing traditional public schools in exchange for a performance-based accountability contract.

8. What Is A Charter School? (cont.) Except where otherwise specifically required, charter schools in California are generally exempt from state laws governing school districts, whether or not these laws are in the California Education Code.

9. What Is A Charter School? (cont.) Charter schools may be authorized by a district, a county board of education (CBE), or by the California State Board of Education (SBE). Specific goals and operating procedures for the charter school are detailed in an agreement, or "charter." Additional details are often set forth in a memorandum of understanding or “MOU.”

10. Improve student learning Increase learning opportunities for all students, especially those who are academically low-achieving Encourage the use of different and innovative teaching methods Create new professional opportunities for teachers What is the Purpose of Charter Schools?

11. Provide parents and students with expanded choice within the public school system Hold schools accountable for meeting measurable performance outcomes Provide competition within the public school system to spur improvement in all schools What is the Purpose of Charter Schools? (cont.)

12. Charter schools are an integral part of the California educational system. The establishment of charter schools should be encouraged. Charter schools are part of the public school system but are free from most of the state laws that apply uniquely to school districts. What is the Legislative Intent?

13. What is the Legislative Intent? (cont.) Charter schools are under the jurisdiction of the public school system and the exclusive control of the officers of the public schools, and are entitled to full and fair funding. The laws governing charter schools are to be liberally construed to effectuate their intent.

14. What Laws Apply to a Charter School? Constitutions, both state and federal The California Charter Schools Act All federal laws (e.g., special education) Laws generally applicable to governmental entities but not specifically aimed at school districts (e.g., open meeting laws) Others listed in the materials

15. What is the Difference Between a Dependent and an Independent Charter School? Traditionally, a “Dependent” school is “your” school for all purposes. Traditionally, an “Independent” school may only be “your” school for limited purposes. There is a growing trend among school districts to mix things up.

16. What is a “Conversion” Charter School? When an existing school site is converted into a charter school, whether an independent or dependent charter school, the school is likely to be considered a “conversion” charter school.

17. Other Important Considerations LEA Status Classroom- or Non-classroom-based instruction Countywide Charters – no appeal of a denial, but there is appeal of a non-renewal or revocation Statewide Charters – may no longer exist after the case of CSBA v. SBE (Aspire)

18. Charter School Petitions and Renewals Presented by: Bill Hornback, Counsel, Schools Legal Service

19. Charter Petitions and Renewals Have a policy in place Identify possible resources for assistance, as needed Be aware of what’s going on around you Petitioner meetings? Taking it to another level... Resolving disputes, dissatisfaction, resistance to change NOW, before it becomes a “charter” topic. Before the Storm

20. Charter Petitions and Renewals (cont.) Schedule and hold a public hearing Review the petition Vote on whether or not to grant the petition Adopt findings of fact upon which a denial is going to be based If granted, adopt an MOU If granted, begin supervisorial oversight What Are My Legal Obligations?

21. Charter Petitions and Renewals (cont.) The charter school presents an unsound educational program for the pupils who are to be enrolled in the charter school. The petitioners are demonstrably unlikely to successfully implement the program set forth in the petition. The petition does not contain the required number of signatures. What are the Grounds for Petition Denial?

22. Charter Petitions and Renewals (cont.) The petition does not contain an affirmation of each of the required conditions. The petition does not contain reasonably comprehensive descriptions of all of the required elements. What are the Grounds for Petition Denial? (cont.)

23. Charter Petitions and Renewals (cont.) Grant the petition Grant the petition with conditions before commencing operations Conditionally grant the petition Deny the petition after adopting fact findings What are the Possible Vote Results?

24. Charter Petitions and Renewals (cont.) Immediately upon receiving a petition... In the first week... In the first 30 days... In the first 60 days... Taking it to the next level – consider results of an appeal / grant on appeal... After the fact - Going into competition? There is a Timeline, and the Clock is Ticking

25. Charter Petitions and Renewals (cont.) Can the reviewing agency revise the petition? Can the reviewing agency suggest improvements? Is there any obligation to do either? What happens in the “perfect” world? Revisions to the Petition

26. Charter Petitions and Renewals, cont. Budget, budget, budget – problems indicate likely failure Conflicts of interest, could be illegality Motivated by something other than students’ best interests – likely problems ahead High level of parental / community support – success! Cloning / conversion of an existing, working program also indicates likely success What are the Indications of Success / Failure?

27. Required Petition Elements Unsound educational program Demonstrably unlikely to successfully implement the educational program Insufficient signatures Missing affirmations / assurances Missing a reasonably comprehensive description of a required element of the petition What are the Grounds for Denial of a Petition?

28. Required Petition Elements (cont.) The petition must include affirmations on all required subjects, including: Nonsectarian in all operations No tuition Not deny enrollment to special needs pupils Meet statewide standards and assessments Declare who is the exclusive public employer What About Affirmations?

29. Required Petition Elements (cont.) The petition must include affirmations on all required subjects, including: No discrimination based on protected categories No discrimination based on residence Require appropriate credentials or other documents Others, as noted in materials What About Affirmations? (cont.)

30. Required Petition Elements (cont.) The code requires signatures of various kinds in various situations The SBE counts signatures at the time of submission, not looking at anything else or any time else Some agencies validate each signature Some agencies reject the petition before review if signatures are believed to be invalid or insufficient What About Signatures?

31. Required Petition Elements (cont.) There are no rules binding on school districts or county boards of education The only rules are only binding on the State Board of Education You get to decide what is reasonably comprehensive Must be factually-based to become a reason for petition denial Reasonably Comprehensive Description

32. Required Petition Elements (cont.) If there is an issue with a required element, the factual basis behind that issue may be a basis for denial. The same facts may also show that the petition presents an unsound educational program. The same facts may also show that the petitioners are unlikely to successfully implement their program. The same facts may be used to show that all the above matters are true Description Issues and Results

33. List of Required Petition Elements A description of the educational program of the school, including the transferability of courses and meeting college entrance requirements Measurable pupil outcomes The method by which pupil progress is to be measured The governance structure of the school

34. List of Required Petition Elements (cont.) Employee qualifications Health and safety procedures, including a criminal record summary on employees Plan for achieving a pupil racial and ethnic balance reflective of the general population of the district Admission requirements, if any

35. List of Required Petition Elements (cont.) The manner in which independent financial audits shall be conducted Procedures by which pupils can be suspended or expelled. The application of STRS, PERS or federal social security. Public school attendance alternatives

36. List of Required Petition Elements (cont.) District employee rights upon leaving/returning to the district Dispute resolution procedures A declaration of whether or not the school is the exclusive public school employer A description of the school closure procedures

37. What About Appeals? There are no rules You do not have to do anything You can participate in the process at any point, if you want to. Your agency has no legal standing in the appeals process Possible court action if no action taken on appeal If Your Agency Has Denied A Petition

38. There is a time line for action County boards of education are required by regulations to either grant or deny the appeal The State Board of Education is only required by regulations to schedule an agenda item for granting or denying, no apparent obligation to actually vote There is no appeal from denial of a countywide charter petition If Your Agency Has Received A Petition On Appeal What About Appeals? (cont.)

39. The law presumes some changes will have to be made. There is no rule preventing any changes beyond those necessary. The reviewing agency on appeal may do exactly what you could have done on initial review. The exact same petition that you denied may be found on appeal to be properly granted. What About Changes During Appeal?

40. Charter Renewal Any charter may be renewed, if it meets the requirements for renewal. All renewals are for a period of five years. Renewal petitions must be reviewed using the same standards as an original petition + new laws. Denial of renewal may be appealed. Denial of a countywide charter renewal may be appealed

41. Charter Renewal (cont.) Met statutory API growth target Ranked in deciles 4-10 on the API Ranked in deciles 4-10 on the API for a comparable school The granting agency determines that the academic performance of the school meets a set standard Has qualified for an alternative accountability system What are the Renewal Requirements?

42. Charter Renewal (cont.) Should not be automatic and should be timed so that no one is inconvenienced by lack of time, including time to appeal any denial of renewal

43. Financial Management and Solvency Presented by: Jim Cerreta, Fiscal Intervention Specialist, FCMAT

44. Charter School Finance in California

45. Funding Mechanism - Direct or Local Funding Direct funded = from the state Locally funded = through chartering authority Either way, funding should be equitable relative to that received by traditional school districts

46. General Purpose Entitlement Largest source of unrestricted charter school revenue Funded on enrollment or Average Daily Attendance (ADA) protection for declining enrollment? Not in California 2010-11 funding reduced by 18.355% deficit, -.39% COLA and an additional 3.85% reduction in California

47. General Purpose Entitlement (cont.) Funded by a combination of: state aid local property taxes (“in lieu of property tax”) In lieu of property tax: property tax dollar amount per ADA of the sponsoring LEA times the charter school’s total ADA

48. General Purpose Entitlement (cont.) The annual amount is the lesser of: Property taxes per ADA Multiplied by the charter school’s ADA OR The charter school’s general purpose entitlement

49. Categorical Block Grant Unrestricted funds Consolidated from individual restricted categorical programs Not eligible to apply separately for these programs See CDE website for list

50. Categorical Programs – State To the extent they are eligible: Locally funded charter schools typically apply through their chartering agencies. Direct-funded charter schools apply directly to the appropriate state or federal agency.

51. Categorical Program Flexibility The 2009-10 California budget provided flexibility options for restricted categorical programs Three tiers – I, II & III I – no flex, no cuts II = no flex, 19% cut (over two years ended 2009-10) III = flex, 19% cut See CDE website for more information

52. Class Size Reduction Program Funding for various grade levels K-3, 9 Maintain class sizes at prescribed levels Penalties for exceeding prescribed levels Penalties: Up to 20.44 = No penalty 20.45 to 21.44 = 5% penalty 21.45 to 22.44 = 10% penalty 22.45 to 22.94 = 15% penalty 22.95 to 24.94 = 20% penalty 24.95 or more = 30% penalty

53. Special Education Programs Special Education programs mandated by federal legislation Individuals with Disabilities Education Act (IDEA) Seriously underfunded at the federal level Federal government = 10% State government = 40% Local government = 50% States have responsibility for developing funding allocation plans SELPAs in California Confederations of districts and counties joined together to more easily develop the programs and services needed to provide full educational opportunities to students with disabilities Special education funding Generated by the total ADA reported by districts and combined at the SELPA level

54. Special Education State laws typically require LEAs to provide charter schools with: An “equitable” share of funds or services or a combination of both Support for the educational needs of charter school students with disabilities

55. Lottery Funding Lottery funds for public education Including charter schools In California, lottery funds are calculated independently for each charter school Paid on an ADA basis Must be used for educational purposes Includes everything except facilities Some of these funds are restricted

56. No Child Left Behind (NCLB) Act NCLB provides restricted federal funding to LEAs for a variety of programs Some charter schools must apply for NCLB funding on their own behalf (direct-funded). Some charter schools may receive funding for NCLB programs through their sponsoring LEA (locally funded). Significant compliance requirements

57. No Child Left Behind (NCLB) Act (cont.) Federal categorically funded programs: Title I, Neglected or Delinquent Title I, Part A, Basic Grant Title II, Part A, Teacher & Principal Training & Recruiting Title III, LEP Students Title IV, Part A, Safe & Drug-Free Schools & Communities Title VI, Part B, Rural Education Achievement Tobacco-Use Prevention Education

58. No Child Left Behind (NCLB) Act (cont.) LEA Plans Charter schools must have an approved LEA plan Submit a plan for review to the state The LEA plan describes how the LEA will use NCLB program funds Also accountability reporting re: student performance, fiscal compliance

59. American Recovery and Reinvestment Act The Federal American Recovery and Reinvestment Act of 2009 (ARRA) was signed into law in February 2009 This legislation has provided significant one-time funds to: Save jobs Stimulate the economy Improve academic outcomes and support school reform

60. American Recovery and Reinvestment Act (cont.) Programs funded by ARRA included ( bold indicates those with greatest funding impact): Education & Human Resources Directorate, National Science Foundation Child Nutrition Equipment Program Child Care and Development Block Grants Head Start and Early Head Start Elementary and Secondary Education Act Title I (Education for Disadvantaged Students) School Improvement Grants Impact Aid Construction Enhancing Education Through Technology (EETT) Education for Homeless Children and Youth Statewide Data Systems Teacher Incentive Fund Teacher Quality Enhancement, State Grants Individuals with Disabilities Education Act Special Education, Part B, 611 (Ages 3 – 21) Special Education, Part B, 619 (Ages 3 – 5) Special Education, Part C (Birth – 2) State Fiscal Stabilization Fund (SFSF) Qualified Zone Academy Bond Program (QZAB) Qualified School Construction Bonds (QSCB)

61. American Recovery and Reinvestment Act (cont.) Remaining funds must be spent by September 30, 2011 Quarterly reporting requirements apply Must report before funds are released New “School Improvement Grant” funds available in California For lowest achieving schools Deadline to apply was June 1, 2010

62. Non-Classroom-Based Instruction Non-classroom-based instruction occurs when a student is not scheduled for at least 80% of the instructional time in a classroom. It includes, but is not limited to: Independent Study Home Study Work Study Distance and computer-based education Funding penalties invoked if not meeting criteria Questions: How do we structure our instructional methodologies? Do we align with any state requirements to maximize funding?

63. Revenue Enhancement Funding based on student attendance Consider student attendance incentives Increased attendance rates = increased funding Offer rewards/prizes to students for: Best attendance rate Most improved attendance rate Use donated funds to fund prizes/rewards Avoid gift-of-public-funds issue

64. Revenue Enhancement (cont.) School calendars Evaluate daily student attendance patterns Identify times when attendance is low Adjust school calendar accordingly Eliminate days that drag down ADA

65. Revenue Enhancement (cont.) Grants Apply….but: Be wary of match requirements! Can create financial burden if not properly understood Key Questions What programs can we fund with this grant? Can we fund this program once the grant expires? Will this grant fund my cost increases over time and my indirect costs?

66. Revenue Enhancement (cont.) Donations Philanthropy/fundraising is an excellent source of supplementary funding for charter schools Make sure it’s a donation, not a fee Identify how the donation will be used when collected Donor should always know how their donations are used Do not use one-time donations to fund ongoing programs Allocate as though they are one-time funds

67. Revenue Enhancement (cont.) Indirect Costs That portion of costs associated with the overhead of operating a charter school Every resource contributes to the need for indirect costs Thus, every resource should be charged Each resource has specific limitations on indirect cost charges Refer to donor for more info

68. New and Expanding Charter Schools Special advance apportionments for new charter schools Start the flow of funds – new schools General purpose funds Categorically funded programs – federal and state Start the flow of funds – expanding schools Significant growth Grade level expansion Offset opening costs

69. Declining Enrollment School districts funded at greater of current or prior year ADA Not available to charter schools State won’t fund the same ADA for both the district and the charter school The “sending entity” must deduct the ADA from the prior year ADA count for purposes of calculating fundable ADA Can’t fund same ADA twice in the same year

70. Facility Funding The State requires sponsoring LEA’s to provide facility space to their charter schools Typical caveats include: On space-available basis Limitations on amounts LEA can charge for operating costs Finding adequate facility space can be difficult Must be consistent with district standard for facilities for similar programs Lab, gym, field, library spaces are difficult to share Must seek alternative housing if no space is available

71. Facility Funding (cont.) Variety of facility funding resources available to charter schools: Site acquisition Construction Modernization/Deferred Maintenance Lease assistance Must meet eligibility requirements Must meet variety of compliance requirements Typically requires matching funds Visit CDE & OPSC websites for more information

72. Facility Funding (cont.) How does an LEA acquire matching funds for facility projects? Issue general obligation bonds or levy development fees Not available to charter schools Issue certificates of participation Can be risky & expensive What funding would be dedicated to their repayment? Borrowing from lenders can be difficult Not likely to loan beyond term of charter school authorization Private and public sector grants may be available Not common

73. Expenditure Control Strategies for Charter Schools

74. Internal Controls A strong internal control structure is critical to controlling expenditures. This includes: Policies and procedures used by staff Accounting and information systems The work environment The tone set by management The professionalism of employees

75. Internal Controls (cont.) Basic Components include: Segregation of duties System of checks and balances Staff cross training Use of prenumbered documents Asset security Timely reconciliations Inventory records Budget Position control Data management

76. Budget Controls Position Control System of internal control that ensures all positions funded by the charter school are properly authorized Check and balance between: Staff who authorize position changes (Business department) Staff who manage vacancies (hire/adjust/terminate) (HR department)

77. Budget Controls (cont.) Economic Uncertainty Reserve Guidance should be provided in charter document or MOU with authorizing agency Consider building reserves in difficult fiscal times Establish a base and add for: enrollment fluctuation staffing/program fluctuation equipment/facility failure

78. Budget Reductions Plan for the Worst, Hope for the Best Review priorities & commitments Update Multiyear Financial Projection Make adjustments now; don’t wait Savings have a multiplier effect Match expenditures to projected funding levels Eliminate structural deficit in budget Implement new plan ASAP

79. Budget Reductions (cont.) Develop a list of reductions that exceeds your reduction target … … and then prioritize Board authorization to implement list by priority Avoids necessity of constant, never-ending budget cutting sessions Revisit priority at budget reporting intervals and as information changes Budget adoption, interim reports, year-end closing, audit report

80. Budget Monitoring Enrollment and Staffing Update projections monthly as actual counts are taken Budget adjustments should be implemented immediately if actual data indicates a material difference from the projected amounts Mid-year staffing adjustments may also be necessary to prevent fiscal distress as a result of overstaffing But not recommended, if it can be avoided Disrupts instructional program

81. Budget Monitoring (cont.) Budget Overages (actual exceeds budget) Preventing overages Use position control system Use “hard stops” on purchase orders Responding to overages Present budget modifications monthly Resolve overage condition Identify condition that led to overage Correct the condition

82. General Ledger Monitoring Monitoring general ledger accounts is also critical to sound fiscal monitoring Cash reconcile items that are not cleared Accounts receivable/payable differences between accruals and actual receipts/payments Inventory that is over/understated Payroll clearing accounts that are not reconciled Payroll clearing is the most commonly under-scrutinized area

83. Compensation Largest portion of budget Average = 80% in school districts, 70% in charter schools Components of increased cost Compensation increases (non-salary schedule) Salary schedule increases/bonuses Step and column salary schedule movement Benefit rate increases (statutory) Benefit program changes (contracted)

84. Compensation (cont.) Identify Available Dollars Available new revenue COLA, growth Less increased fixed costs (previous commitments) Step and column salary schedule movement Statutory benefit rate increases, utilities, insurance Increased staffing needs Less discretionary allocations New/expanded/restored programs Other priorities Equals amount available for compensation

85. Compensation (cont.) Desperate Fiscal Climate Traditional budget reduction approaches may not be sufficient Creative solutions may be needed to stay fiscally and cash solvent May need to consider: Compensation deferrals Can’t pay now, but may be able to later Compensation rollbacks Across-the-board reductions Salaries/Benefits/Both

86. Compensation - Statutory Benefits Statutory benefit rates likely to increase Retirement systems have suffered substantial losses in recent years Rate adjustments have been implemented Benefit reductions are under consideration Social Security, Medicare in need of significant fixes Proposals are politically risky Nothing concrete proposed to date Unemployment Insurance costs on the rise More layoffs = higher rates

87. Compensation - Contracted Benefits Health & Welfare Benefit Programs Medical, dental, vision, life, etc. Health care reform may not provide timely solutions May increase costs Increase purchasing power Join a JPA Consider HMOs, Health Savings Accounts (HSAs) Review benefit caps on premiums, co-pays, deductibles Validate dependent enrollments

88. Position Costs Staff positions to meet charter school’s program needs But no more Overstaffing - and unfunded compensation agreements - are the largest components of financial failures! Consider options before creating permanent positions Use substitutes/extra duty/overtime Contract out (if legal) Short-term cost < permanent cost

89. Contributions to Restricted Programs Some restricted programs require contributions from unrestricted funding sources Some are mandated by law Some are discretionary Manage contributions Limit contributions to the amounts necessary If unexpected contribution occurs, investigate Educate the organization that the contribution occurred and why Determine the level of commitment One-time vs. ongoing

90. Budget Development Best Practices for Charter Schools

91. Budget Development – Governance Adopt charter school board policies and regulations regarding budget management Guidance to staff regarding expectations for the budget Establish: Goals and objectives for the charter school Instructional/financial/other Process by which budgets are aligned with goals and objectives Process to identify budget assumptions Process to develop budget

92. Budget Development – Strategies Develop budgets with a multiyear perspective Be thinking in a 3 to 5 year time frame Primary focus on budget year Additional focus on subsequent years Not as detailed Organization needs a compass to see where it’s going Action plan What we need to do, and when To achieve goals and objectives

93. Budget Development – Strategies (cont.) Use conservative assumptions Estimate low on revenues, high on expenditures But don’t overdo it! Estimating too high or too low can create serious problems Loss of credibility Harm to programs Negative effect on student performance

94. Budget Development – Strategies (cont.) Allocate new revenues (if any!) to needs, then wants Fund the base and related fixed cost increases first Inflationary effect on supplies, etc. Benefit increases Statutory and contractual Step and column movement across salary schedules (if any) Contractual/debt service obligations

95. Budget Development – Strategies (cont.) Then, if funds are available, allocate new funds to wants Program development, expansion, restoration Compensation increases Building reserve levels This process also works when funding decreases.

96. Multiyear Financial Projections State law identifies the duties of a charter authorizing entity Charter authorizing entity must monitor the fiscal condition of charter schools A budget and a multiyear financial projection (MYFP) are integral information for the oversight function 2 to 5 years after budget year

97. Multiyear Financial Projections (cont.) MYFP Focus meet required reserve for economic uncertainty positive unappropriated fund balance Deficit spending trends? Must: increase revenue decrease expenditures or both

98. Report Format Budget Report Format - Narrative How the budget aligns with the goals of the board How it supports student learning Significant assumptions used to develop the budget Budget reduction detail Response to reduced funding, declining enrollment or other factors

99. Report Format (cont.) Unaudited Actuals Report Format may be prescribed by the State Basis for independent financial audit Last chance to affect the charter school’s financial status before the audit begins

100. Report Format (cont.) Typical List of Supplemental Information Budget assumptions for revenues and expenditures Analysis of enrollment and average daily attendance (ADA) trends An organizational chart Statement of cash flow for the current and subsequent fiscal year Profit and loss statement Disclosure of all multiyear fiscal obligations, such as loans, lines of credit, etc., for the next three years

101. Cash Flow Management Techniques for Charter Schools

102. The Importance of Cash Flow Cash flow is an important factor in determining the fiscal health of the charter school. Many schools are using their reserves to balance their budget. Using reserves affects future cash flow. Less reserves means less cash. It is possible to maintain economic reserves in the budget, yet be out of cash. Cash shows no mercy – you either have it or you don’t/

103. State Cash Flow Management As the state continues to experience shortfalls in revenue, they must have a means to improve their cash flow. Deferrals have been the key to improving the state’s cash situation, but have become detrimental for LEAs. Cash flow will continue to be challenging to manage for LEAs as deferrals are added, increased or lengthened.

104. State Cash Flow Management, cont. Source: California State Controller’s Office

105. The Cash Concept It is often difficult to conceptualize the specific nature of cash Assets – liabilities = fund balance But is the fund balance cash? No: Assets are not all cash Liabilities are accrued debts Therefore the fund balance is not all cash

106. Managing Receivables and Payables Clean up receivables and payables as soon as possible during the fiscal year Best practice indicates that the majority of receivables and payables should be finalized by October 31 Any outstanding balances should be investigated: Is this still a valid receivable or payable? When will it be received or paid?

107. Reconciling Cash Best practice is to reconcile cash each month for each fund – Not reconciling cash can result in significant surprises once the backlog is caught up – The charter school will be able to more accurately anticipate cash borrowing needs What needs to be reconciled? – The county treasurer’s records – The charter school’s financial system records – The bank’s records Remember to balance clearing accounts

108. General Ledger Accounts Quick quiz: What effect do these transactions have on cash? No effect Increasing accounts payable for the utilities bill at year end No effect Transfer of a cash receipt posted as revenue to the accounts receivable account Increase Receipt of the amount previously posted as accounts receivable for the grant No effect Accrual of accounts receivable for a grant Decrease Payment to vendor for a textbook shipment accrued as accounts payable No effect Inc/(Dec) in CashTransaction Generation of a billing for use of facilities

109. Cash Flow Projections - Example Rows: A.Beginning cash B.Receipts – includes incoming cash from non-revenue sources C.Disbursements – includes outgoing cash for non- expenditure items D.Prior year transactions E.Net increase/decrease F.Ending cash

110. Sample Charter School Cash Flow Columns: One for each month Actuals through which month? Accruals column is for what? What function does the Totals column provide?

111. Sample Charter School Cash Flow (cont.) Accruals column allows for noncash items that will be recorded on the books Typically during year-end closing Totals column is the sum of all columns on the projection Should balance to: The latest version of the current year’s budget The prior year’s receivables and payables

112. Cash Flow Projection Tools Spreadsheets Financial management software FCMAT’s Budget Explorer software Web-based product Free to all users Charter school version under development Visit www.fcmat.org to review

113. Apportionment Schedules For the revenue or Receipts section of the cash flow projection, apportionment schedules are available These account for much of charter schools’ incoming cash. Education Code Section (E.C.) 14041 in California details the amount of apportionments for charter schools.

114. Month E.C. 14041(a)(2), (3), and (4) After SBX4 16 2009-10 Deferrals Received in 2010-11 Share of 2010-11 Statutory Apportionment July 20105.00%12.25%0.00% August 20105.00%7.5%5.00% September 20109.00%5.25%14.00% October 20109.00%0.00% November 20109.00%0.00%9.00% December 20109.00%0.00%9.00% January 20119.00%0.00%18.00% February 20119.00%0.00%0.50% March 20119.00%0.00% April 20119.00%0.00%15.00% May 20119.00%0.00%4.50% June 20119.00%0.00% July 201117.50% August 20117.50% Total Principal Apportionment100.00%25.00%100.00% California Principal Apportionment Schedule 2010-11

115. Ongoing Deferrals - California $2 billion deferral from the Principal Apportionment from February to July $570 million in K-3 Class-Size Reduction funds from February to July $679 million deferral from April to August $1 billion deferral from May to August Generally Accepted Accounting Principles (GAAP) caveat on the accounting treatment of any deferral that crosses fiscal years Verify with your audit firm before recording on your books

116. 2010-11 One-Time Deferrals - California The advanced apportionment for July 2010 will be deferred by 60 days in the amount of $2.5 billion The October 2010 advanced apportionment will be deferred by 90 days in the amount of $2.5 billion The March 2011 principal apportionment will be deferred until April 29, 2011, in the amount of $2.5 billion

117. Exemptions from Apportionment Deferrals - California Charter schools have two opportunities to apply for an exemption from the July 2010, October 2010, and March 2011 deferrals: #1 - June 1, 2010 deadline – All 3 of above deferrals #2 - January 5, 2011 deadline – only the March 2011 deferral LEAs that receive exemptions from ABX8 14 (Chapter 10/2010) will still be subject to the permanent deferrals that occur in February, April, May, and June.

118. In-Lieu Property Taxes Payments from the charter school’s sponsoring LEA In lieu of the charter school’s share of the LEA’s local property taxes  No deferrals available to sponsoring LEA The annual amount is the lesser of: Property taxes per ADA Multiplied by the charter school’s ADA OR The charter school’s general purpose entitlement

119. In-Lieu Property Taxes August 6% September 12% October 8% November 8% December 8% January 8% February 8% March 1/3 April 1/6 May 1/6 June 1/6

120. In-Lieu Property Taxes (cont.) July = settle-up month Actual property taxes of prior year Actual P2 ADA of prior year Less amounts transferred August through June February Final adjustments to the prior year In conjunction with the final reconciliation of annual apportionments to schools

121. Categorical Apportionments Federal Apportionments are considered Tier I No flexibility No transfers, except as allowed for No Child Left Behind (NCLB) programs. Funds will be apportioned according to established schedules. California Tier III categorical programs have experienced a change in cash flow. The 41 programs transferred from restricted to unrestricted will now follow the regular apportionment schedule (i.e., 5, 5, 9... ) for cash flow purposes See the CDE’s worksheet

122. Local Revenues Other local revenues The charter school is the best estimator of other local revenues Use historical percentages and information on which to base the school’s current projection Update the projections frequently to reflect actuals to date

123. Expenditures Estimating the timing of expenditures is critical for cash flow purposes Dividing the budgeted amount by 12 months is not a good strategy It most likely will not give you an accurate picture of the LEA’s cash needs to meet obligations As the fiscal year progresses, analyze projected spending amounts Use the projected budget as a basis for the cash flow Make sure all reductions or increases are accounted for in the cash projection For example, if spending freezes have been enacted, have the anticipated savings been accounted for in the cash flow projection?

124. Double Checking Once the details of the cash flow projection are complete, compare the “Total” column figures as specified: Receipts and Disbursements sections should equal the revenue and expenditure line items in the budget Exception: Other Receipts/Non-Revenue and Other Disbursements/Non-Expenditures should equal year- end balances for current-year asset and liability accounts Prior-Year Transactions section should equal the prior- year asset and liability account balances

125. Projecting Cash Flow Now, ask these questions: Based on the 2010-11 cash projection: Is cash negative at any time? If so, what borrowing options are most appropriate?

126. Projecting Cash Flow (cont.) If borrowing is necessary at year end, the most frequently used option is a temporary transfer from another fund Are there sufficient balances in other funds? How long will the borrowing be needed? A midyear TRANs may be an option as well See following section on cash borrowing options

127. Cash Borrowing Options External borrowing – three options: Tax and Revenue Anticipation Notes (TRANs/RANs) Private financial institutions Accounts receivable factoring Now, with state deferrals, even more agencies require borrowing Some LEA’s – typically in a fiscal crisis – have borrowed from the COE or the county treasurer This option not available to charter schools in California

128. Cash Borrowing Options (cont.) Outside experts are needed for legal and financial matters related to the issuance A financial advisor can save you time and money Legal counsel can ensure that the transaction complies with all laws and regulations Most agencies issue TRANs by pooling their needs with other agencies Saves on costs of issuance Coordinated through various public agencies/nonprofit organizations

129. Cash Borrowing Options (cont.) Agreeing to a third-party intercept would help secure a TRANs/RANs loan The county treasurer or county office of education could intercept TRANs/RANs-pledged charter school revenues Pay them directly to the lender Provides lender added security May be necessary to obtain financing

130. Cash Borrowing Options (cont.) Borrowing from a financial institution is an option Line of credit Secured or unsecured Issuance costs and interest rates tend to be higher than for a TRAN Private financing tends to be more difficult to acquire May find qualification requirements onerous Particularly for new or start-up charter schools

131. Cash Borrowing Options (cont.) Accounts Receivable factoring is another option Less common Involves selling accounts receivable to a financial institution at a discount Need significant receivables for this option to generate meaningful cash flow Relatively expensive TRAN/RAN is likely less expensive

132. Other Cash Flow Options The State of California provides cash flow loans to charter schools Used for start-up costs Relatively short-term (3-5 years) Reasonable interest rates and issuance costs Check with CDE; visit their website

133. Cash Borrowing Options Loans require the charter school to repay the lender What happens if the charter school can’t? It’s GAME OVER Charter schools are not eligible for an emergency state loan in California. Fund balance can be low or negative, but cash cannot

134. Relationships Developing a relationship with your lender and other parties involved is critical to successful borrowing Financial institution County office of education County treasurer Management company (if applicable) Sponsoring LEA Financial advisor/legal counsel

135. Effective Monitoring Processes and Procedures Presented by: Bill Hornback, Counsel, Schools Legal Service Michelle Plumbtree, Chief Management Analyst, FCMAT

136. What is Effective Oversight Identify at least one staff member as a contact person. Visit each charter school at least annually. Ensure that each charter school files all required reports. Monitor the school’s fiscal condition. Notify the CDE if a renewal is granted or denied, the charter is revoked, or the school closes. The Law Requires:

137. What is Effective Oversight (cont.) Always be aware of what is going on. Document efforts to have issues resolved. Form at least a neutral relationship. Build trust; foster open communications. Review the audit. What are the Best Practices

138. What is Effective Oversight (cont.) Ensure audit findings are resolved. Track experiences over time to see if policies, practices, and preferences are working. Suggest revisions if they are not working. What will keep my agency out of court? What would a jury think I should have done? What are the Best Practices (cont.)

139. Memorandum of Understanding (MOU) It’s important to develop a comprehensive MOU as a framework for the relationship and to supplement the charter provisions. The purpose is to clarify financial and operational issues. An MOU is an agreement between the authorizing agency and the charter school. Allows the chartering agency to identify expectations. Not required by charter law but highly recommended. Is a binding legal agreement once approved.

140. Memorandum of Understanding (MOU) (cont.) The MOU should define specific expectations and responsibilities of the two parties, such as: student performance expectations for educational programs special education frequency of school site visits financial reporting requirements services provided by the sponsoring agency.

141. Memorandum of Understanding (MOU) (cont.) Elements of a comprehensive MOU outline expectations regarding oversight roles and responsibilities and a well defined periodic review process through: 1.An expanded business plan 2.A facilities plan regarding the use and payment for space that also reflects the terms and conditions for use of district property. 3.An administrative and support services plan

142. Memorandum of Understanding (MOU) (cont.) It is critical to clearly spell out the relationship between charter schools and their chartering agencies. The MOU is traditionally enforced as part of the charter, and replaces any inconsistent language in the charter. The State Board of Education and Department of Education have a form of MOU available.

143. County Office Authority To monitor or conduct an investigation into the operations of the charter school based on written complaints by parents or other information that justifies such actions. To review or audit the expenditures and internal controls of a charter school at any time during the fiscal year if there is reason to believe that fraud, misappropriation of funds, or other illegal fiscal practices have occurred. May request the County Office or Fiscal Crisis and Management Assistance Team (FCMAT) to review the fiscal or administrative condition of a charter school.

144. Annual Audits Must contract for an audit by April 1 of each year Contract with an auditor from the Certified Public Accountants Directory published by the State Controller’s Office Must submit an annual independent financial audit by December 15 of each year to the following: State Controller’s Office CDE’s Charter Schools Division CDE Audit Resolution Office Authorizing agency County office of education where the school is located

145. Annual Audits (cont.) The audit shall be conducted in accordance with General Accounting Office (GAO) standards for financial and compliance audits and in accordance with the audit guide adopted by the Education Audit Appeals Panel (EAAP). Delays : There is no provision in the law for an extension on a charter school audit.

146. Annual Audits (cont.) Audit findings To ensure a favorable recommendation for renewal, each audit must be free of material findings and exceptions, or corrective action plans must have been implemented in a timely manner. The auditor is required to review the correction, or plan of correction, to determine if the exceptions have been resolved in the subsequent year audit

147. Charter Revocation Committed a material violation of any of the charter (or MOU) Failed to meet/pursue any of the pupil outcomes Failed to meet GAAP, or engaged in fiscal mismanagement Violated any provision of law What Are Grounds For Revocation?

148. Charter Revocation (cont.) The Code sets forth the process to follow. The revocation process only applies when the grounds for revocation also require a chance to cure the violation. There is no statutory right to cure any revocation based on grounds that constitute a severe and imminent threat to the health or safety of the pupils, and there is no right to appeal these kinds of violations What Is The Process For Revocation?

149. Charter Revocation (cont.) Any violation that does not constitute an imminent threat may be appealed. Denial of a revocation appeal may be appealed. The test on appeal is whether the revocation is based on substantial evidence. If overturned on appeal, the agency that granted the charter remains the oversight agency Can Any Revocation Be Appealed?

150. Presented by: Bill Hornback, Counsel, Schools Legal Service Michelle Plumbtree, Chief Management Analyst, FCMAT Common Issues

151. Governance Issues: What Laws Apply There is an unresolved dispute in the state over the application of Government Code Section 1090 Govt. Code Section 1099 – Incompatible Offices Govt. Code Section 1226 – Incompatible Activities Govt. Code Section 53227 – Employees on the Board You get to decide the answer, each time you look at a charter petition, an original petition, or on appeal, or on renewal

152. What Laws Apply (cont.) Some laws are accepted to apply, such as: Political Reform Act – Government Code Brown Act – Government Code Another grey area is the granting agency’s right to a seat on the board of directors of any not-for- profit corporation operating a charter school. The answer is: Whatever you want it to be.

153. Class Fees, Deposits and Other Charges

154. Free School System California Constitution provides for a free school system Since 1874, the California Supreme Court has interpreted this to mean students are entitled to be educated at the public’s expense. Title 5, California Code of Regulations, Section 350, specifically states: “ A pupil enrolled in a school shall not be required to pay any fee, deposit, or other charge not specifically authorized by law.”

155. Non-Allowable Fees Public schools, including charter schools, cannot levy fees as a condition for participation in any class, whether elective or compulsory. This includes: Security deposits for locks, lockers, books, class apparatus, musical instruments, uniforms or other equipment. Fees for participation in either curricular or extra- curricular activities. All supplies, both necessary and supplemental, must be provided free of charge whenever a particular curricular or extracurricular program is adopted.

156. Non-Allowable Fees (cont.) Gym or Physical Education Clothes EC Section 49066 states, “No grade of a pupil participating in a physical education class may be adversely affected due to the fact that the pupil does not wear standardized physical education apparel where the failure to wear such apparel arises from circumstances beyond the control of the pupil,” such as lack of sufficient funds.

157. Non-Allowable Fees (cont.) The CDE has stated the position that schools may require students to purchase their own gym clothes of a district specified design and color so long as the design and color are of a type sold for general wear outside of school. Once the required gym uniforms become specialized in terms of logos, school name or other similar characteristics not found on clothing for general use outside of school, they are considered school supplies and the district must provide the uniforms free of charge.

158. Allowable Fees Fees for the following can be levied based on the Education Code: Transportation to and from school Transportation to places of summer employment Charges for food, limited by the free and reduced price meal program Insurance for field trips Lost or damaged books or other district supplies Direct cost of materials for property the student has fabricated in class for their own use (if board policy in place)

159. Allowable Fees (cont.) Fees for school camp programs (i.e. outdoor science camp). The fee cannot be mandatory. Fees for field trips and excursions may be charged in connection with courses of instruction or school-related social, educational, cultural, athletic, or school band activities. The fee cannot be mandatory. Optional fingerprinting program for kindergarten or newly enrolled students, if offered. Actual cost of duplication of public records or student records. Charges for medical and accident insurance for athletic team members, except for those members who cannot afford to pay.

160. Gift of Public Funds California Constitution, Article 16, section 6 addresses the subject: Prohibits making any gift of public money to any individual (including public employees), corporation, or other government agency. “... the Legislature shall have no... power to make any gift, or authorize the making of any gift, of any public money or thing of value to any individual … whatever …”

161. Gift of Public Funds (cont.) Expenditures of school funds must be for a direct and primary public purpose to avoid being a gift. Expenditures that most directly and tangibly benefit students’ education are more likely justified. Must be within the scope of a school entity’s jurisdiction and purpose. To justify the expenditure of public funds, the governing board must determine that the expenditure will benefit the education of students within its schools Expenditures driven by personal motive are not justified even if they have a long-standing custom or are based on benevolent feelings

162. Gift of Public Funds (cont.) If the governing board has determined that a particular type of expenditure serves a public purpose, courts will almost always defer to that finding. Put in board policy The following can be considered a gift of public funds unless in board policy: Flowers Candy Donations to charity

163. Gift of Public Funds (cont.) Expenses CANNOT be considered a gift of public funds Must have a direct or substantial purpose Misappropriation of public funds is considered a criminal act, with no monetary limit specified. Better to be safe than sorry

164. Are gifts allowable? Not allowable, even if small in amount Many think that “de minimus” gifts, those of trivial or little value, would be okay (under $20/person). Most courts would disagree.

165. Are Awards Allowed? Authorized by E.C. 44015 To employees for exceptional contributions; to students for excellence The board is required to adopt rules and regulations about awards if there is no policy or regulations, no awards are allowed Can’t exceed $200 unless in board policy Awards to community members are not considered authorized. Birthdays, weddings, funerals and holidays are not considered an award.

166. Are Awards Allowed? (cont.) Awards to employees are allowed if the employee: Propose procedures or ideas that are adopted and result in eliminating or reducing district expenditures or improving operations Perform special acts or special services in the public interest Make exceptional contributions to the efficiency, economy or other improvement in operations of the district

167. Is Employee Clothing/Attire Allowed? No specific statute or case authorizing such expense Could definitely be considered a gift of public funds Not allowable unless required to perform his or her duties as a coach, club advisor, etc. or if considered an “award” under E.C. 44015

168. Are Employee Appreciation Meals Allowed? Appreciation meals do not qualify as awards Attorney General says they are not “actual and necessary” per E.C. 44032 They don’t provide a direct and/or substantial purpose, so would be a gift of public funds

169. Good Business Practices Establish board policy and administrative regulations regarding what is considered allowable/unallowable Establish procedures to follow if questions arise Set parameters for determining appropriateness Assign a specific employee in the business office to provide assistance Provide annual training

170. Proposition 39 - Charter School Facilities You have facilities obligations to all in-district students, whether or not they are enrolled in your schools. You have facilities obligations to charter schools granted by someone else, if your students are enrolled. Adverse impacts on your agency do not give you an excuse for refusing to provide facilities... Maybe. Lots of regulations exist on this subject

171. Charter School Facility Regulations Are detailed Are confusing Cost formulas are not easy to understand Contain a provision stating that any facilities agreed to by the agency and the charter school can meet the requirements of the law Dispute resolution requires non-binding mediation

172. Charter School Facilities May be requested if the school has projected having at least 80 units of ADA consisting of district pupils Are not required to be provided for non-district pupils Must be “reasonably equivalent” to district facilities Must be “contiguous” Must be located reasonably near where requested Must be maintained by the charter school, except for capital improvements

173. Presented by: Gary Quiring, CSIS Implementation Specialist, FCMAT Data Management and Key CALPADS Concepts for Charter Schools

174. Data Management Topics Data management and charter schools CALPADS purpose, benefits and timeline CALPADS security requirements CALPADS implementation Data management services provided by FCMAT/CSIS

175. Importance of Data Management All local education agencies (LEAs) are required to assign and maintain Statewide Student Identifiers (SSIDs). Official reporting of enrollment, dropout, graduate and other data is now based on CALPADS data. Funding and public views on the efficacy of your school are affected by local data management practices.

177. Importance of Data Management (cont.) Data management practices affect the quality of local and CALPADS data. CALPADS data is used in the AYP and API calculations. CALPADS data feeds into the CDE DataQuest system and the Ed-Data (Education Data Partnership) system. Fiscal data also feeds into the Ed-Data system. CALPADS data is being sought by researchers to evaluate program effectiveness and draw conclusions.

178. Importance of Data Management (cont.) Data management practices affect the public’s view of school data. Reports on your charter are available to the public via DataQuest and Ed-Data. News media use DataQuest and Ed-Data when researching and reporting education issues. Parents use Ed-Data to identify quality schools for their children.

179. Charter School Reporting Responsibilities There are two types of charter schools for CALPADS reporting: Charters that report data independently from their authorizing agency Charters that report data through their authorizing agency

180. Charter School Reporting Responsibilities (cont.) Charter schools may elect to report through their authorizing agency (LEA) or independently. The CALPADS reporting method can be changed each May for the following reporting year. Changing the charter school CALPADS reporting method is a charter school decision. Decision should be made in consultation with the authorizing LEA.

181. Charter School Reporting Responsibilities (cont.) The decision should be based on local capacity to maintain and report student data. The charter school reporting method is the same for CALPADS and OPUS-CBEDS. See CDE’s CALPADS Website: http://www.cde.ca.gov/ds/sp/cl/charterschools.asp

182. Charter School Reporting Responsibilities (cont.) Not meeting CALPADS reporting requirements may result in zero enrollment counts. Zero enrollment counts will result in a loss of any funding based on official enrollment. All students must be exited correctly in CALPADS when a school closes.

183. California Longitudinal Pupil Achievement Data System (CALPADS) Purpose, Benefits and Timeline

184. CALPADS Purpose Provide LEAs and the CDE with access to data necessary to comply with NCLB reporting requirements. Provide a better means of evaluating educational progress and investments over time. Provide LEAs with information that can be used to improve pupil achievement. Provide an efficient, flexible and secure means of maintaining longitudinal statewide pupil level data.

185. CALPADS Benefits Uniform statewide data collection and maintenance. Immediate access to information on new students, entered by LEAs where the students were previously enrolled. Visibility of data to support school performance improvement.

186. CALPADS Benefits (cont.) Download of data from CALPADS to conduct analyses using local tools Print and download reports Filter report data based on user-selected filters (e.g. district, school site, grade level, demographics, program participation) View summary and detail reports (e.g. Student Demographic, Program Participation, Enrollment History, Enrollment Exit History, Assessment History) View assessment test results (e.g. CAHSEE, CELDT)

187. CALPADS Benefits (cont.) Provides CDE program staff the ability to access and extract data for state and federal reporting and analysis Provides authorized CDE staff the ability to create ad hoc reports Provides the ability to maintain at least 20 years of data in a production environment Is designed to enable expanded capabilities over time

188. Snapshot Collection Windows Fall 1 Annual Enrollment Graduates and Dropouts Enrollment Subgroups Fall 2 Course Enrollment Certificated Staff Assignments English Learner (EL) Services Spring 1 English Language Acquisition Status Title III Eligible Immigrants End of Year 1 Course Completion Career Technical Education (CTE) End of Year 2 Program Participation End of Year 3 Discipline and Truancy End of Year 4 Waivers CALPADS Collections Timeline Which Data are Expected?

189. CALPADS Collections Timeline (cont.) Snapshots Certification & Amendment Calendar CALPADS Submission Census Day Snapshot Collection Window Certification Deadline Amendment Window Fall 1October 6October 6 – December 16December 16December 17 - January 20 Fall 2October 6November 8 – January 27January 27January 28 – February 24 Spring 1March 1March 1 - March 25March 25March 26 - April 22 EOY 1none TBD EOY 2none EOY 3none EOY 4none

190. CALPADS Security Requirements

191. CALPADS Security If your charter school is independently reporting to CALPADS, your charter school LEA CALPADS administrator is responsible for assigning CALPADS accounts for charter school staff. If you report CALPADS data through your authorizing agency, you should coordinate with your authorizing agency to establish: Charter school staff accounts in CALPADS User roles and access levels for your charter’s data

192. CALPADS Security (cont.) Administrators of independently reporting charter schools need to complete and submit an LEA CALPADS administrator application form to the CALPADS operations office. Once the application is approved, the named LEA CALPADS administrator will be provided access (username and password) to the CALPADS system. The LEA CALPADS administrator is responsible for creating and assigning CALPADS accounts for charter school staff.

193. CALPADS Security (cont.) Important to establish local business practices that limit access to CALPADS data, and prevent unauthorized access to CALPADS data Charter school administrators are accountable for all staff who access CALPADS data. The LEA CALPADS administrator account is NOT for daily use. The LEA CALPADS administrator MUST create an LEA account for daily use.

194. CALPADS Security (cont.) The LEA CALPADS administrator creates and maintains CALPADS accounts for staff users. This includes password resets and account revocation. The account controls access to data based on the following: User Security Level - determines the level of data that the user can see in CALPADS School LEA User Roles - give the users access to specific data and functions in CALPADS

195. CALPADS Security (cont.) Charter management organizations sometimes administer and report data for more than one charter school. The CALPADS operations office can create a multiple charter school account for a single user, upon approval by individual charter school administrators.

196. Staff training is required when the following occurs: Change of status to independently reporting Staff turnover Change of student information system Batch file submissions for independently reporting charters: Reporting LEA field must contain the school code School of Attendance must contain the school code Lessons Learned

197. Some student information systems are not completely CALPADS compatible. CALPADS batch file templates are the best way to fix this issue https://www.calpads.ca.gov Login, then click on the Help menu Lessons Learned (cont.)

198. LEA admin account cannot be used for: Anomaly contact Submission or access to NSLP data Data certification (Level 1 and Level 2) Daily use These roles must be assigned to a different user account Plan ahead for certification deadlines CALPADS Calendar: http://www.cde.ca.gov/ds/sp/cl/rptcalendar.asp Lessons Learned (cont.)

199. CALPADS Implementation

200. Leadership for Data Management Know the requirements, rules and deadlines, and work to meet them CALPADS file specifications, code sets, data guide and enrollment procedures: http://www.cde.ca.gov/ds/sp/cl/systemdocs.asp Provide staff sufficient time to complete the work Allocate resources for staff training and SIS maintenance

201. Leadership for Data Management (cont.) Monitor implementation. Help resolve problems. Encourage collaboration, both internal and external. Before certifying data, have appropriate staff review certification reports: Program directors Food services Human resources

202. Leadership for Data Management (cont.) Use the CDE/CSIS certification reports: Superintendent’s Data Inconsistency Alert Summary Report Superintendent’s Data Inconsistency Alert Detail Report Data Inconsistency Alert Guide

203. CALPADS Training Online Self-Paced Trainings: Training 1: Overview of CALPADS Objectives and Requirements Training 2: CALPADS Key Features, Key Concepts and System Administration

204. CALPADS Training (cont.) WebEx and Online Self-Paced Trainings: Training 3: CALPADS SSID Enrollment Training 4a & 4b: CALPADS State Reporting and Anomalies Training Fall 1: Fall 1 Reporting and Certification Other TBD (Fall 2, Spring, End of Year) Regional Trainings at County Offices of Education Training Fall 2 – Two hour regional training

205. Requirements References Review CALPADS Documentation: File Specifications Code Sets Extract Specifications SSID and Enrollment Procedures Data Guide Valid Code Combinations Error List Technical Update Located at: http://www.cde.ca.gov/ds/sp/cl/systemdocs.asp

206. Requirements References (cont.) Online CALPADS documentation (Login and click on the Help menu): User Manual LEA Operations Manual Quick Start Guide Batch File Templates Instructions and Tips

207. A two-part question will be required to collect race and ethnicity information from students and staff There is no category for “Unknown” or “Decline to State” Requirements apply ONLY to 2009-2010 and later student enrollments and staff hires Frequently asked questions posted at: http://www.cde.ca.gov/ds/td/lo/refaq.asp Other resources posted on CSIS website: http://www.csis.k12.ca.us/library/calpads/ Sample student and staff forms NCES document Federal Requirements for Race and Ethnicity

208. Data Auditing Procedures Elements of a Data Audit: Analysis of findings Error determination or exception Error replication Sources of errors and sources of correct data Notify appropriate staff of errors detected and how they will be corrected Correction of problems Determine if local processes need improvements

209. Best Practices for Data Quality Establish Standards Evaluate local and state requirements Correlate state codes Identify system of record Implement Standards and Expectations Document standards Conduct training Provide support Designate data stewards

210. CSIS CALPADS Support Tools Found in the CALPADS menu under CALPADS Documents on the CSIS homepage (http://www.csis.k12.ca.us)

211. CSIS CALPADS Support Tools (cont.) CFS Aligned Gap Analysis Tool CFS Gap Analysis and Planning Tool Preparing to Submit Elementary Course Data Preparing to Submit Scheduled Course Data

212. Data Reporting Responsibilities and Collaboration Coordinate with your district if you report with them. Create or expand your data management team. Define clear roles and responsibilities with respect to CALPADS. Encourage communication and collaboration.

213. Local Staff Training CSIS CALPADS Trainings 2-4 are “train the trainer” based Online self-paced trainings allow focus on selected topics Establish local policies for CALPADS enrollment updates and anomaly resolution Train staff on CALPADS and local policies Train staff on new CALPADS functionality in local SIS

214. FCMAT/CSIS Data Management Services

215. Academic records transfer (ART) Address validation (AV) Direct certification (DC) Eligibility in local context (ELC) Data management coordinator training Onsite technical assistance (fee based)

216. Academic Records Transfer Service for sending student records from secondary to postsecondary institutions For more information and to register for training, visit http://www.csis.k12.ca.us/rt/default.asp

217. Address Validation Free FCMAT/CSIS service to correct student addresses or notify the LEA of addresses that need to be corrected Corrected addresses improve communication to parents If sent to CALPADS, corrected addresses can increase matching for direct certification Address validation is not currently part of CALPADS For more information and to register for training, visit http://www.csis.k12.ca.us/services/AV/default.asp

218. Eligibility in Local Context Free service to automate transmitting the top 12.5% of 11 th grade student records to the University of California – Office of the President (UCOP) Top 4% of students in each California high school class will be designated UC-eligible For more information and to register for training, visit http://www.csis.k12.ca.us/services/ELC/default.asp

219. Data Management Coordinator Training Free training for staff who are new to education and/or new to data management. The class is in two parts: Part 1 focuses on key data management concepts, data constituencies and ways to build organizational leadership and support for data management Part 2 focuses on factors affecting data quality, data security, data use and reporting considerations. For more information and to register for training, visit http://www.csis.k12.ca.us/e-learning/services- registration/default.asp

220. FCMAT Onsite Technical Assistance Fee-based service Interested LEAs can obtain individual assistance in: Local data management practices CALPADS implementation

221. Contact Information CALPADS Support http://www2.cde.ca.gov/CALPADSHELP/DEFAULT.ASPX CSIS Support (ART, AV, DC, & ELC) http://www.csis.k12.ca.us/support/ContactSupport/ Gary Quiring gquiring@csis.k12.ca.us 916.325.9241

222. CALPADS Resources CDE CALPADS: http://www.cde.ca.gov/calpads CALPADS file specifications, code sets, data guide and enrollment procedures: http://www.cde.ca.gov/ds/sp/cl/systemdocs.asp Sign up for CALPADS listserv: http://www.cde.ca.gov/ds/sp/cl/listservs.asp CSIS CALPADS: http://www.csis.k12.ca.us/library/calpads/

223. CALPADS Resources (cont.) Charter school CALPADS and CBEDS-OPUS data reporting policy: http://www.cde.ca.gov/ds/sp/cl/charterschools.asp CALPADS training registration page: http://www.csis.k12.ca.us/e-learning/calpads- registration/ CALPADS self-paced training: http://www.csis.k12.ca.us/e-learning/sp- training/CALPADS/sp-training.asp

224. CALPADS Resources (cont.) DataQuest http://dq.cde.ca.gov/dataquest/ Ed-Data http:/ / www.ed-data.k12.ca.us/welcome.asp CALPADS file upload templates https://www.calpads.ca.gov Login, then click on the Help menu CALPADS User Manual https://www.calpads.ca.gov Login, then click on the ? menu

225. CALPADS Resources (cont.) CALPADS update FLASH http://www.cde.ca.gov/ds/sp/cl/communications.asp CALPADS known issues updates http://www.cde.ca.gov/ds/sp/cl/knownissues.asp Education data newsletter http://www.cde.ca.gov/ds/sd/cs/

226. Foretelling The Future

227. School districts are converting schools to charters to get start-up grant money. Education in the virtual real-time classroom is already here. A movement is under way to relieve virtual classroom programs from independent study rules/restrictions. Statewide/countywide charters dead? This Is What’s Happening Already

228. Where to Go for Help

229. Fiscal Crisis and Management Assistance Team (FCMAT) Website: www.fcmat.org Management Assistance On-site Technical Assistance AB139 Extraordinary Audit Fiscal Crisis Fiscal Advisor/Fiscal Expert Online Help Desk Professional Development

230. Charter School Division Contact Information Charter Schools Division California Department of Education, 1430 N Street, Suite 5401, Sacramento, CA 95814 Phone: 916-322-6029Fax: 916-322-1465 email: charters@cde.ca.gov Website: www.cde.ca.gov/sp/cs

231. Questions and Answers

232. Thank you for attending!