Bobby Rykard Director of Performance Management

SCDE Funding Manual guidelines/funding-manuals/ guidelines/funding-manuals/ Financial Accounting Handbook financial-accounting-handbook/ financial-accounting-handbook/ SCDE Pupil Accounting System Manual guidelines/pupil-accounting-manual/pupil-accounting-manual/ guidelines/pupil-accounting-manual/pupil-accounting-manual/ SC Student Accountability Manual guidelines/student-accountability-manual/student-accountability-manual/ guidelines/student-accountability-manual/student-accountability-manual/

Education Finance Act (EFA – Base Student Cost) $2,220 per-pupil Charter Proviso $3,600 brick/mortar per-pupil $1,900 virtual per-pupil Education Improvement Act (EIA-Categorical Funding) Reading Coaches, Technology, At-Risk Students, Teacher Supply, Assessment, etc. (these funds are not generally budgeted in the application)

Title I – Improving the Academic Achievement of the Disadvantaged Title II – Improving Teacher Quality Title III – Language Instruction for Limited English Proficient (LEP) and Immigrant Students Individuals With Disabilities Act (IDEA) Planning and Implementation Grant (P/I) Granted through SCDE, not SCPCSD ***Cash Flow Concern*** Federal funds are reimbursement grants. The school incurs the expense via general funds and requests reimbursement.

Private Donations Not required, but further illustrates capacity and community support Donated facilities or land provides much more flexibility within the budget to target funds toward instruction Has the committee researched potential grant opportunities?

Student Enrollment Projection Per-Pupil Estimate (Weighting per EFA) 5 Year Budget With Detailed Budget Assumptions Cash Flow Projection 10 Year Budget Memorandum of Agreement for Negotiated Services Documentation Supporting Evidence for “Soft” Funds

What is the minimum enrollment needed to achieve solvency? Does the school operate within a budget surplus? Does the school grow cash reserves over time? Upon opening can the school maintain days cash-on-hand? Has the school budgeted for an annual independent audit and planned to submit it to the sponsor and SCDE? Does the budget reflect the overall mission of the school?

Is demographic data used in projections representative of the target population? Clear alignment to a focused educational program Are funds prioritized similarly to educational and operational initiatives? Are budgeted items “reasonable and necessary” to fully implement programs as described in the narrative? Salaries, supplies/materials, technology, professional development are sufficient Are positions described in the narrative sufficiently funded in the budget? Instructional Staff Enough teachers to cover subject areas and class size Are teacher salaries comparable/competitive to retain teachers? Support Staff – are critical positions funded? PowerSchool/pupil accounting, special education, guidance, nursing…

Does the committee have financial/legal/contract experience? The charter committee chair should be able to speak to the budget The budget is a plan based on projections; however, the committee should be able to specifically address contingencies What if the selected facility cannot be obtained? What if enrollment does not meet projections? Impact on the budget and programs/activities Will the school offer SC Retirement System Benefits? Fully understand the budget implication Ensure language is consistent throughout the application narrative and appendices Example – enrollment language and projections

Focus on segregation of duties No one individual should control all phases of transactions Financial Policies/Procedures Procurement – Procedures for vendor selection, approval, contract monitoring Cash Receipts – physical receiving of cash, deposits, bank reconciliations Disbursements – approval of payments, actual check disbursement Will school funds be insured by FDIC? Plan to address audit findings