FIN -23 Sharing Charter School Best Practices APRIL 3-6, 2013, LONG BEACH, CA

Sharing Charter School Best Practices Sharing Charter School Best Practices Financial Workshop Session ID: FIN23 Friday, April 5, :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 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

A Pathway to Happiness Or, more accurately: How Oversight Can Work Well for both Districts and Charters Keith Butler, Coronado Unified School District Teresa 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 4

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 § and subdivision (m) of §

6 Requirements in Ed. Code§ (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

7 Required Reports  Annual Budget - July 1 st  First Interim Report - Dec. 15 th (as of 10/31)  Second Interim Report – Mar. 15 th (as of 1/31)  Unaudited Actuals - Sept. 15 th  Audit Report - Dec. 15 th

8 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

9 What has worked in Charter Oversight?  Communication, Communication, Communication!  Building Relationships  Clear Expectations  Clear MOUs, including Special  Education and Oversight  Communication formal informal

10 Guidelines for charter oversight Examples, not templates  Financial-only  County Office Authorizers’ Toolkit  Modified SBE Oversight Guidelines

11 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

12 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?

13 Financial-only Guidelines Two 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

14 County Office Authorizers’ Toolkit Categories to check for evidence, yes/no format 1 – General Requirements 2 – Fiscal and Business Operations 3 – Educational Performance 4 – Facilities 5 – Governance 6 – Personnel 7 – Student Services

15 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

16 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 each year regarding oversight activities?

17 Oversight & Monitoring Scenario 1 A charter is being visited, and you ask for documentation of attendance accounting. What are you expecting to see?

18 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?

19 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?

20 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

21 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?

22 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?

23 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?

24 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 grade be used?

25 Thank you: To you for your interest, and for coming to this workshop! To our colleagues at County Offices for their help and support!