1. Charter School New Applicant Workshop May 2, 2016

2. Agenda Common Mistakes Section 20 - Budget Section 21 - Financial Management & Oversight Federal & State Assistance Additional funding Websites & Resources

3. Application – Section 20 Budget Applicants are required to use the Charter Support Unit Florida Charter School Budget Template Tool and upload the entire excel workbook http://www.flcsu.org/services/budgethttp://www.flcsu.org/services/budget The Budget should be tailored to your application and Palm Beach County Provide a detailed explanation when diverting from the tool

4. Application – Section 20 Budget Common Mistakes Not providing a verification and/or commitment letter for additional funds included in the budget (not including FEFP revenue). If an agreement is not from a financial institution, additional support of financial solvency is required (audited financial statement, provide board minutes, tax returns, etc). Using federal or competitive grant funds, food service, transportation and/or afterschool revenues to balance the budget Including capital funds in the first year of operations. Most schools will not meet the conditions in 1013.62 F.S. until the fourth year of operations Budgeting 100% enrollment without incorporating an adequate reserve

5. Application – Section 20 Budget Common Mistakes Inadequate budget (salary and non-salary) to meet the needs of special education or other special program students. Palm Beach County ESE population is 15% (not including gifted). Inadequate budget for teacher salary and benefits. New applicants must be competitive with charter schools in Palm Beach County. Current charter school average salary is $39,500 and benefit rate is 25% Inadequate budget for technology needs. DOE recommends 1 to 1 ratio. Inadequate budget for transportation.

6. Application – Section 20 Budget Common Mistakes Inadequate budget for facilities: Additional support should be provided for per square foot lease rates of less than $12, such as lease agreement. Using the per student facility estimate – there is not enough information for the district to determine whether all costs were considered Using the financing calculator to purchase a building. Unless you have already received approval from a financial institution do not use the financing calculator. If your financing agreement is not from a financial institution, additional support of financial solvency is required (audited financial statement, provide board minutes, tax returns, etc).

7. Application – Section 20 Budget Common Mistakes Not having sufficient reserves to cover unexpected events, i.e. lower enrollment than projected (should be 5-15% of total revenue) Overall lack of consistency between sections

8. Application – Section 20 Budget Common Mistakes Examples of lack of consistency between what is documented in the applications and what is included in the budget Target Population and Student body does not match Not enough teachers based on the school calendar and schedule Insufficient funds allocated to purchase the comprehensive educational programs/instructional materials (curriculum) described in the application Not enough funds allocated to computers or network systems necessary to implement the curriculum Insufficient funds to provide the elective courses offered as described in the application Insufficient funds allocated for assessment and evaluation tools used by the school as described in the application

9. Application – Section 20 Budget Common Mistakes Examples of lack of consistency between section, continued Insufficient staff and support services (consulting) for exceptional students as described in the application Insufficient staff and support services for english language learner students as described in the application Insufficient funds allocated for board professional development or board training Insufficient funds allocated for teacher and leadership development ESP fee and service structure different from the one described in the application Compensation plan different from the one described in the application, including benefits and retirement plans

10. Application – Section 20 Budget Common Mistakes Examples of lack of consistency between sections, continued Insufficient funds for recruiting and marketing strategies to enroll students as described in the application Insufficient funds based on the desired facility space and cost Budget does not align with the transportation plan Budget does not align with the food service plan No budget for premiums for the insurance policies described in the application Budget or cash flow does not follow the timelines described in the application

11. Application – Section 21 Financial Management & Oversight Common Mistakes Including board members that lack strong financial experience Not having adequate board review of financial statements Not having a documented budget amendment process requiring board review

12. Application – Section 21 Financial Management & Oversight Common Mistakes Not hiring a qualified accountant Not having proper segregation of duties Not addressing annual audit requirements including 1002.33(9)(j)(1), 218.39, 218.391, 1002.345 F.S, and 6A-1.0081, F.A.C. Not having documented financial policies and procedures

13. State & Federal Financial Assistance Capital Outlay (see F.S. 1013.62) Charter School Program (CSP) Grant - (Competitive) Title I IDEA National School Lunch Program Pursuant to provisions of 20 U.S.C. 8061 s. 10306, all charter schools shall receive all Federal funding for which the school is otherwise eligible, including Title I funding, not later than 5 months after the charter school first opens and within 5 months after subsequent expansion of enrollment.

14. Websites & Resources FLDOE Choice School Website www.floridaschoolchoice.org/Information/Charter_Schools/ www.floridaschoolchoice.org/Information/Charter_Schools/ Charter Support Unit http://www.flcsu.org/http://www.flcsu.org/ FLDOE – Red Book www.fldoe.org/fefp/redtoc.aspwww.fldoe.org/fefp/redtoc.asp Florida Auditor General www.myflorida.com/audgen/www.myflorida.com/audgen/ Florida Statute www.leg.state.fl.us/statutes/www.leg.state.fl.us/statutes/ Florida Administrative Code www.flrules.org/www.flrules.org/

15. Contact Information Heather Knust, CPA Budget Director 561 434-8837 Heather.Knust@PalmBeachSchools.org Mary Ussery Budget Analyst – Charter Schools 561 434-8837 Mary.Ussery@PalmBeachSchools.org Nicholas Parks Budget Tech – Charter Schools 561 434-8837 Nicholas.Parks@PalmBeachSchools.org