1. The Mechanics of Building a Charter School Budget Statewide Charter School Budget Boot Camp September 24, 2009

2. ©2009 -- ESC Region XI Financial Health of a Charter School  Audit Report  Fund Balance  Financial Performance T

3. ©2009 -- ESC Region XI Warning Signs of Financial Troubles  Declining enrollment  Inappropriate staffing levels  State funding not monitored  If you had an overpayment, did you save the overpayment?

4. ©2009 -- ESC Region XI Possible Scenario $425,000 $475,000 $350,000 $25,000 -$120,000 300 225 Students 28 Staff 20

5. ©2009 -- ESC Region XI Budget Laws and Polices  Texas Education Code Section 44.002 through 44.006Section 44.002 through 44.006 The Superintendent shall prepare, or cause to be prepared, a proposed budget covering all estimated revenue and proposed expenditures of the District for the following fiscal year. Education Code 44.002 Budget prepared in accordance with GAAP and FASRG specificationsGAAPFASRG Budget must be adopted by the governing body not later than August 31 or June 30

6. ©2009 -- ESC Region XI Budget Process  Planning Instructional Plans Planning should drive the budget, the budget should not drive the Instructional Plan  Preparation Develop Budget Guidelines Develop Budget Calendar Develop Building Maintenance and Equipment Calendar

7. Federal/Program Funds Instructional Planning Instructional Plan Comprehensive Needs Assessment Instructional Improvement Pieces Campus Expenditures

8. ©2009 -- ESC Region XI From an Auditor’s Perspective Reserve space in your instructional plan to include how you spend your Sate Compensatory Ed and Title Funds. It’s a MUST!

9. ©2009 -- ESC Region XI Sample using dollar amounts and FTEs Example from actual instructional plan: Thunderbird Elementary is a Title I School-wide campus with a 90% or more free/reduced meal rate. State Compensatory Education Funds will be used on the school-wide campus to support and upgrade programs and activities for students at-risk of dropping out of school. Campus Total: $208,112.00 FTEs: 9.3 Personnel: $208,112 Supplies $0

10. ©2009 -- ESC Region XI Purpose of Title I, Part A Improving Basic Programs provides supplemental funding for resources to help schools with high concentrations of students from low-income families provide a high-quality education that will enable all children to meet the state's student performance standards.

11. ©2009 -- ESC Region XI Purpose of Title I, Part A, cont. Title I, Part A supports schools in implementing either a school-wide program or a targeted assistance program. These programs must use effective methods and instructional strategies that are grounded in scientifically based research.

12. ©2009 -- ESC Region XI What is a Needs Assessment? A good plan starts with knowing the needs of your students. The data from assessments (needs) should support your expenditures that will enable all children to meet the state's student performance standards.

13. ©2009 -- ESC Region XI A Look at the Yellow Hand-Outs  Update 13 – Instruction plan outline  Sample Plan Skeleton with sample SCE statement  Required Components – Title I  Allowable and Unallowable costs  Recap

14. ©2009 -- ESC Region XI Strategies Person Responsible Resources Formative Evaluation Timeline Summative Evaluation Sample Academic Campus Plan Goal: Objective:

15. ©2009 -- ESC Region XI Each ESC Region has specialists! Use them for support! Texas Education Agency Dahlinda Alaniz Division of Financial Audits 512-463-9095 State Compensatory Ed Specialists

16. ©2009 -- ESC Region XI Revenue Sources  State Funding Foundation School Program (FSP) Technology Allotment State Fiscal Stabilization Fund (SFSF)  Federal Funds and Grants

17. ©2009 -- ESC Region XI Building the Campus Budget  Established by charter school guidelines  Level of review determined by charter school size  Budget Line-Item  Non-Allocated/Priority T

18. ©2009 -- ESC Region XI Building the Budget  Code Structure Fund Codes Function Codes Object Codes Local Option Codes Organizational Codes Fiscal Year Code Program Intent Codes Local Option Codes  PEIMS Information ADA Types of students (e.g., Sp. Ed., G&T, Career Tech., etc.)

19. ©2009 -- ESC Region XI Estimate Salaries  70%+ are salary-related expenditures Salaries and Wages 6111X and 6112X Social Security 6141 Health Insurance 6142 Workers Compensation 6143 TRS On-Behalf 6144 Unemployment 6145 TR Care 6145 Employee Benefits 6146

20. ©2009 -- ESC Region XI Special Program Budgets - Expenditures  Special Populations – State Program Monies  Special Education (85%)  Career and Technology (90%)  Gifted and Talented (85%)  Bilingual Education (85%)  Compensatory Education (55%, 45% indirect costs) State Board of Education directed to increase indirect cost rates in similar fashion for other special population programs  Title Programs (85% ?)

21. ©2009 -- ESC Region XI Internal Controls of the Budget  Calculate and project revenue and expenditures – be conservative.  Use historical information.  Build the budget with proper coding.  Know how the coding relates to the TEA Summary of Finance and other supporting state and federal documents. Proper coding keeps the school in compliance. Correct PEIMS data; improper PEIMS reporting may cost the campus revenue.

22. ©2009 -- ESC Region XI

23. Budget Amendments Adopted budget can be amended Function level Other budget amendments are determined by Board policy Amended budget must be recorded in board minutes

24. ©2009 -- ESC Region XI Activity Funds  Local Policy  One Account  Collection of funds  Expenditure payments  Check writing  Purchase orders/requests  Money in classrooms  Events and money collected

25. ©2009 -- ESC Region XI  Teacher Organizations (e.g., TSTA, ATPE, etc.)  Civic Organizations (e.g., Optimist, Lions, Rotary, etc.)  Booster Clubs (e.g., Athletics, Band, UIL, etc.)  Parent Support Groups (e.g., PTA, PTO, etc.) Charter School Support Organizations

26. ©2009 -- ESC Region XI26 Miscellaneous – New (HB3646)  Vending machines Requires adoption of local policies regarding use of funds from vending machines, gate receipts, rentals, etc. Requires expenditures to be related to district’s educational purpose and to provide benefit to district or its students Lisa Dawn-FisherTEA

27. ©2009 -- ESC Region XI Dr. Clyde W. Steelman, Jr. Deputy Director of Administrative and Business Services clydes@esc11.net 817-740-3630 --------------------------------------------------------------------- Linda Rowland Educational Consultant for Administrator Development lrowland@esc11.net 817-740-7535 ------------------------------------------------------------------- DeAnna Jenkins Coordinator for Administrator Development djenkins@esc11.net 817-740-3685