1. CHARTER SCHOOL FINANCES & IMPORTANCE OF TRANSPARENCY
Thursday May 3, 2018
CHARTER SCHOOL FINANCES & IMPORTANCE OF TRANSPARENCY

2. CHARTER SCHOOL FINANCES & START UP TIPS
Thursday May 3, 2018
CHARTER SCHOOL FINANCES & START UP TIPS
“The question that faces the strategic decision-maker is not what his organization should do tomorrow. It is: What do we have to do today to be ready for an uncertain tomorrow?” – Peter Drucker
“Everybody has a plan until you get punched in the face” – Mike Tyson

3. Charter School Revenue in PA
State, Local (tuition), Federal, & Donations
State – doesn’t really exist anymore
Good old days included Social Security, PSERS
Currently Rental reimbursement and Ready to Learn Block Grant
Local – approx. 95% of total revenues
Tuition Calculation Circus
Federal – entitlement grants helpful, but not game changers
Donations – don’t count on them until operating and checks clear bank
It’s “Ownership, one step down. Not management one step up.” John Carver 3

4. Charter School Financial Best Practices
Demonstrate a Commitment to Fiscal Transparency
Ensure a Segregation of Duties Regardless of Size
Board Establishes a Commitment to Fiscal Transparency
Set Goals and Monitor Regularly
Monthly Financials – delivered timely
Annual Reports and Audit 4

5. Demonstrate Fiscal Transparency by posting these docs on WWW
1. Annual Budget – consolidated or expanded format
2. Most Recent Independent Audit – multiple years are better
3. Most Recent 990 – multiple years are better
4. Monthly Financial Statements – overview, or complete:
income statement, balance sheet, deposit & disbursement detail
5. Organizational Chart
No one really says “But we’ve always done it that way”, but they say essentially the same thing:
I can’t imagine why we’d need to change.
How would I do this if I changed things?
I just believe this is the best way for us
That might work for others, but 5

6. Demonstrate Fiscal Transparency by posting these docs on WWW
Right To Know Officer’s contact info accessible on website
- Best response to RTK request = already available on our website
Administrator(s) contact info accessible on website
Board Member list & Bio’s accessible on website
Enrollment Info accessible on website
At charter renewal, in the press, or at audit time, there won’t be any sympathy for turnover at the board, CEO or senior management level. In fact, this will be cited as a weakness and used against you.
Even if you have or find “Superman”, Superman may fly away, leaving you . . . 6

7. Fiscal Operations Responsibilities
WHO does WHAT, and HOW do we hold ourselves accountable?
Key Administrators & Finance Committee create “Role Chart”
Review it with Board, Put it on the WWW 7

8. Ask Good Questions
Good News! Board members do not need to be CPAs, financial experts, or even good at math to be good stewards of public funds.
The most important job of board members is to ask good questions and hold employees & vendors accountable for good answers.

9. 3 More Things………
403bs for new employees: It is not your responsibility to bail out PSERS
Think – and speak – about “compensation” rather than “salary/pay”. An employee with $50K salary may cost the school $90K when PSERS, health benefits, tuition reimbursement and other expenses factored in
Educate your stakeholders – Board, teachers, families – and make them partners

10. Resources Where to go for more information
Experts in your field – look for the best
Peers – benchmark the best
Associations – technical materials & standards
Administrative Agencies – procedural & technical knowledge and resources
Where to go when things go wrong
Use phone – call trusted counsel
For any fraud/waste/abuse:
Move fast, document steps
Why training and refreshers are important
Reminds staff it’s important
Happy auditors/examiners
Resources
Engage Your Team of Professionals
Charter Choices
The Education Governance Academy
PA Coalition of Public Charter Schools
PA Department of Ed
US Department of Ed – Charter School Office
National Charter School Resource Center
National Alliance for Public Charter Schools
Where you have a question about how to handle something or if it is indeed an issue that merits escalation, ask us.
You don’t need to know the “alphabet soup” of organizations – but your CFO/Business Manager should be familiar with these and what they can do. You can coach them on what to discuss internally versus externally.