Executive Director of Federal & State Programs EXCELLENCE INNOVATION RESULTS SOUTH CAROLINA Application Overview: Business Plan Bobby Rykard Executive Director of Federal & State Programs

Application Requirements Finance Enrollment projection 5 Year Budget 10 Year Budget Budget detail assumptions (e.g. 10 1.0 FTE teachers x $42,000, 5 Chromebooks x $150) Cash flow projection Explanation of required annual independent audit (in the narrative) Documentation of any donations/contributions Memorandum of Agreement for negotiated services

Familiarity with SC charter school funding Budget Resources Familiarity with SC charter school funding $2,425 – Education Finance Act (EFA) – Base Student Cost $3,600 - Charter Proviso Funding ($1,900 for Virtual Schools) SCDE Funding Manual Understand EFA weighting and add-ons (on P. 6-7) Use reasonable projections for populations (Poverty, Special Ed) SCDE Accounting Code Handbook SCDE Per-Pupil Accounting

Budget Dos/Don’ts Dos Don’ts Have financial expertise on the school board/committee as well as legal expertise for contract review Collaborate with existing schools/experts in charter finance (in South Carolina) Align budget to educational program-strategies/initiatives Do not include unsecured funds (federal programs) Okay to include P/I Grant Sufficient staffing, technology, and supplies related to model Speak to donations/contributions Detailed budget assumptions/detail Resource budget that is not aligned to educational program Have a deficit fund balance in the budget Have calculation errors in the budget Leave required financial components out of the application 5 year/10 year budget, cash flow, budget assumptions/detail

Familiarity with charter school funding Budget Resources Familiarity with charter school funding $2,425 - EFA – Base Student Cost $3,600 - Charter Proviso Funding ($1,900 for Virtuals) SCDE Funding Manual Understand EFA weighting and add-ons (on P. 6-7) Use reasonable projections for populations (poverty, Special Ed) SCDE Accounting Code Handbook SCDE Per-Pupil Accounting Manual

Budget Tips What happens if anticipated funding is less than you thought? Less enrollment than projected? Projected funds are not received (P/I grant or expected funds)? Unexpected costs – building retrofitting, facilities maintenance Does the school have a contingency plan and adjusted budget to know what activities/areas will be reduced in the budget? Negotiate, negotiate, negotiate – contracts, leases, etc.

Budget Tips Strong understanding of internal controls to be able to explain in the application narrative Clear explanation of services provided by service providers or education management companies If providing retirement (SCRS), understand costs Are salaries competitive/reasonable? https://ed.sc.gov/finance/financial-services/budget-planning-for-upcoming-school-year/fy-17-18/fy-17-18-state-minimum-salary-schedule-final/

RESULTS EXCELLENCE INNOVATION Charter Application SOUTH CAROLINA Charter Application School Business Plan - Facilities Bobby Rykard Executive Director of Federal & State Programs

Application Requirements for Facilities Floor plan of facility, including size/sq. footage Facilities/lease agreement Documentation from (OFS) Office of School Facilities Documentation from SCDOT A facility does not have to be secured for approval, but is highly recommended (research, location defined, understanding of needs for facility related to educational program)

SCDE Office of School Facilities Facilities Resources SCDE Office of School Facilities https://ed.sc.gov/districts-schools/school-planning-building/ School Facilities Planning & Construction Guide https://ed.sc.gov/districts-schools/school-planning-building/south-carolina-school-facilities-planning-construction-guides/planning-and-construction-guide-meetings-for-2017-update/ (Also includes best practices for site selection and instructional space)

Facilities Tips Are facilities reflective of educational model and defined activities? Narrative – define expected number of classrooms, square footage requirements, other facilities requirements – media center, gym, labs Explain assurance of accessibility for all students (e.g. students with disabilities) If facility not selected, describe the plan for securing a facility, define a timeline for securing and building or occupying the facility, and any plan for adapting facilities to meet needs ***DO NOT WAIT TO COORDINATE WITH SCDE-OFS & SCDOT***

RESULTS EXCELLENCE INNOVATION Charter Application SOUTH CAROLINA Charter Application School Business Plan - Insurance Bobby Rykard Executive Director of Federal & State Programs

Insurance Requirements Description of Types and Amounts of Insurance Coverage Workers Compensation Liability Insurance Loss of school building/contents due to fire/theft Indemnity insurance against civil/criminal liability Auto, property and liability insurance Statement/quote from a licensed insurance company estimating costs and ability of applicant to secure insurance