the mechanics of building a charter school budget statewide charter school budget boot camp...

The Mechanics of Building a Charter School Budget

Statewide Charter School Budget Boot Camp

September 24, 2009

©2009 -- ESC Region XI

Financial Health of a Charter School

Audit Report

Fund Balance

Financial Performance

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Warning Signs of Financial Troubles

Declining enrollment

Inappropriate staffing levels

State funding not monitored

If you had an overpayment, did you save the overpayment?


Example Charter School

Possible Scenario

$425,000

$475,000

$350,000

$25,000

-$120,000

300

225Students

28Staff

20


Budget Laws and Polices

Texas Education Code Section 44.002 through 44.006

The Superintendent shall prepare, or cause to be prepared, a proposed budget covering all estimated revenue and proposed expenditures of the District for the following fiscal year. Education Code 44.002

Budget prepared in accordance with GAAP and FASRG specifications

Budget must be adopted by the governing body not later than August 31 or June 30


Budget Process Planning

Instructional Plans Planning should drive the budget, the budget

should not drive the Instructional Plan

Preparation Develop Budget Guidelines Develop Budget Calendar Develop Building Maintenance and Equipment

Calendar

Federal/Program FundsInstructional Planning

Instructional Plan

Comprehensive Needs

Assessment

Instructional Improvement

Pieces

Campus Expenditures


From an Auditor’s Perspective

Reserve space in your instructional plan to include how

you spend your Sate Compensatory Ed

and Title Funds.

It’s a MUST!


Sample using dollar amounts and FTEs

Example from actual instructional plan:Thunderbird Elementary is a Title I School-wide

campus with a 90% or more free/reduced meal rate. State Compensatory Education Funds will be used on the school-wide campus to support and upgrade programs and activities for students at-risk of dropping out of school.

Campus Total: $208,112.00 FTEs: 9.3 Personnel: $208,112 Supplies $0


Purpose of Title I, Part A

Improving Basic Programs provides supplemental funding for resources to help schools with high concentrations of students from low-income families provide a high-quality education that will enable all children to

meet the state's student performance standards.


Purpose of Title I, Part A, cont.

Title I, Part A supports schools in implementing either a school-wide program or a targeted assistance program. These programs must use effective methods and instructional strategies that are grounded in scientifically based research.


What is a Needs Assessment?

A good plan starts with knowing the needs of your students.

The data from assessments (needs) should support your expenditures that will enable all children to meet the state's student performance standards.


A Look at the Yellow Hand-Outs

Update 13 – Instruction plan outline Sample Plan Skeleton with sample

SCE statement Required Components – Title I Allowable and Unallowable costs Recap


Strategies Person Responsible

Resources Formative Evaluation

Timeline Summative Evaluation

Sample Academic Campus PlanGoal: Objective:


Each ESC Region has specialists!Use them for support!

Texas Education AgencyDahlinda Alaniz

Division of Financial Audits512-463-9095

State Compensatory Ed Specialists


Revenue Sources

State Funding Foundation School Program (FSP) Technology Allotment State Fiscal Stabilization Fund (SFSF)

Federal Funds and Grants


Building the Campus Budget

Established by charter school guidelines

Level of review determined by charter school size

Budget Line-Item

Non-Allocated/Priority

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Building the Budget Code Structure

Fund Codes Function Codes Object Codes Local Option Codes Organizational Codes Fiscal Year Code Program Intent Codes Local Option Codes

PEIMS Information ADA Types of students (e.g., Sp. Ed., G&T, Career Tech., etc.)


Estimate Salaries 70%+ are salary-related expenditures

Salaries and Wages 6111X and 6112X Social Security 6141 Health Insurance 6142 Workers Compensation 6143 TRS On-Behalf 6144 Unemployment 6145 TR Care 6145 Employee Benefits 6146


Special Program Budgets - Expenditures

Special Populations – State Program Monies Special Education (85%) Career and Technology (90%) Gifted and Talented (85%) Bilingual Education (85%) Compensatory Education (55%, 45% indirect costs)

State Board of Education directed to increase indirect cost rates in similar fashion for other special population programs

Title Programs (85% ?)


Internal Controls of the Budget Calculate and project revenue and expenditures

– be conservative. Use historical information. Build the budget with proper coding. Know how the coding relates to the TEA

Summary of Finance and other supporting state and federal documents. Proper coding keeps the school in compliance. Correct PEIMS data; improper PEIMS reporting

may cost the campus revenue.


Budget Amendments

Adopted budget can be amended Function level Other budget amendments are

determined by Board policy Amended budget must be recorded in

board minutes


Activity Funds Local Policy One Account Collection of funds Expenditure payments Check writing Purchase orders/requests Money in classrooms Events and money collected


Teacher Organizations (e.g., TSTA, ATPE, etc.)

Civic Organizations (e.g., Optimist, Lions, Rotary, etc.)

Booster Clubs (e.g., Athletics, Band, UIL, etc.)

Parent Support Groups (e.g., PTA, PTO, etc.)

Charter School Support Organizations

©2009 -- ESC Region XI 26

Miscellaneous – New (HB3646)

Vending machines Requires adoption of local policies

regarding use of funds from vending machines, gate receipts, rentals, etc.

Requires expenditures to be related to district’s educational purpose and to provide benefit to district or its students

Lisa Dawn-FisherTEA


Dr. Clyde W. Steelman, Jr.Deputy Director of Administrative and Business [email protected] 817-740-3630

---------------------------------------------------------------------Linda RowlandEducational Consultant for Administrator [email protected] 817-740-7535

-------------------------------------------------------------------DeAnna JenkinsCoordinator for Administrator [email protected]

the mechanics of building a charter school budget statewide charter school budget boot camp...

Documents

esc region xi

budget calendar

proposed budget

budget guidelines

budget laws

budget process

equipment calendar slide

actual instructional