OCCS Regional Board Training School Finance 101 OCCS Regional Board Training

Agenda Today’s Goal To help community school board members understand aspects of charter school funding and other financial matters in order to raise their level of comfort when faced with financial decisions. Today’s Agenda: State Funding Federal Funding Other Funding Budgets and Financial Review Five-Year Forecasts Annual Financial Audits OCCS Expectations

State Funding Community School Payment Letters Community School Payment Reports #1 CS Detail Payment Report #2 CS Summary Report #3 & #4 CS District Reports #5 CS Statement of Settlement

Layers of State Funding Opportunity Grant - $5,800 per FTE for FY2015 Tier 1 Targeted Assistance Special Education K-3 Literacy Economically Disadvantaged Funding Limited English Proficiency Funding Career Technical Funding Transportation Facilities Funding

Federal Funding Supplement NOT Supplant Comprehensive Continuous Improvement Plan (CCIP) Process Drawing down funds Single Audits (A-133)

Other Types of Funding Facilities Funding Casino Approximately $100 per FTE Casino About $50 per student June 2014 Payment (paid August 2014) was about $25.33 per student. 2 payments per year January and August Grants and Fundraising

Budgets and Financial Review Understand your financial situation Good decisions can only be made if all relevant information is present and understood Finance committees Budgets Get involved with budgeting process Get key players involved: school leaders, etc. Monthly or quarterly? Actual versus Budget Explanation of variances Monthly financial information Cash Flow Projection, Stmt of Activity, Budget Comparison, Balance Sheet

Five-Year Forecasts Purpose To engage board and school community in long range planning and discussions of financial issues facing school. To provide a method for ODE and AOS to identify school’s with potential financial problems. Due October and May Use ODE prescribed form ORC 5705.391 OAC 3301-92-04 If there is a deficit project in one of the first three years forecasted there should be a plan in place to eliminate deficits. Assumptions Reasonable

Annual Financial Audits ORC 117 [specifically ORC 117.10, 117.11, 117.38] GAAP financials due to AOS 150 days after end of fiscal year Single Audits (A-133) FY 2015-More than $500,000 in Federal Expenditures FY 2016-More than $750,000 in Federal Expenditures School Audits are Public and Easy to Find https://ohioauditor.gov/ Click on AUDITS > SEARCH AUDITS Read your school’s audit Management Letters Audit Committees are recommended Entrance and Exit Interviews – useful when there are issues Fraud Interviews During the Planning Phase the Auditor will contact a board member (usually the board president) to conduct the fraud interview. Please respond to the auditor ASAP.

OCCS Expectations Monthly Monitoring (ORC 3314.023) Collecting monthly financials from treasurers OCCS review Communications with treasurers and boards Annual Contract Monitoring Adding financial goals to new P&A plans (Attachment 5) Intervention Enrollment trends Five-year forecasts Fiscal contract goals Audit results School living within financial resources

OCCS Expectations (cont.) Reauthorization Five-year forecasts Fiscal contract goals Audit results School living within financial resources

Questions? Adrianne Shreve (419) 720-5202 adrianne@ohioschools.org