1. Charter School Finance School Business October 2014

2. Who is School Business? 28 employees who are responsible for the policy and data of student, personnel and financial of entities receiving public school state and federal funds.

3. What School Business Does Public school budget development Allocation of funds Collection of data Analysis of data Projections Monitor the compliance of laws and policy Report

4. Todays Topics Funding Sources Allotments Reporting and Reports Cash Management Monitoring and Compliance Non Compliance

5. Terms Allotment = Funding in a Program Report Code (PRC) = “Bucket of Money” Average Daily Membership (ADM) sum of the number of days in membership for all students in individual charter school, divided by the number of school days in the term.

6. Charter School Funding Sources  State  Federal  Local  County  Other

7. State Funds General Statute115C 238.29H Allocate to each charter school an amount equal to the average per pupil allocation for average daily membership from the local school administrative unit in which the charter school is located An additional amount for children with special needs and for children with limited English proficiency

8. Components of State Funding State base funding – based on dollars per Average Daily Membership Children with Disabilities (CWD EC) based on dollars per headcount. Child must be on the April 1 headcount to be eligible Limited English Proficiency (LEP) if the charter school has eligible LEP headcount. At least 20 students or 2.5% of ADM.

9. Federal Funding Sources Most common are Title I (PRC050) and IDEA VI-B (PRC060) Allotted as grant award documents are received from Washington Budget approval required before allotments are distributed Refer to the North Carolina Allotment Policy Manual at http://www.ncpublicschools.org/docs/fbs/allotments/general/ for a list of federal PRC’s, eligibility for funds, allotment formulas, and any special provisions. http://www.ncpublicschools.org/docs/fbs/allotments/general/ Unused funds revert at the end of the grant period.

10. Local Funds - LEA GS 115C 238.29H The LEA in which the student resides shall transfer to the charter school and amount equal to the per pupil local current expense fund. Plus a per pupil share of the penal fines and forfeitures and supplemental school tax, if any. DPI does not verify the calculation of these amounts and any dispute is between the LEA and the charter school.

11. Local Funds Shall be transferred to the charter school within 30 days that the LEA receives the monies. The LEA shall provide a (1) The total amount of monies the local school administrative unit has in each of the funds (2) The student membership numbers used to calculate the per pupil share of the local current expense fund. (3) How the per pupil share of the local current expense fund was calculated.

12. Local Funds-Other All other forms of revenue such as local grants, donations etc are considered local. Local funds do not revert

14. Critical Items when Building your Budget 1. Average Daily Membership Be realistic Know the breakeven number of students 2. State Base Allotment –Varies by LEA $4,538to $10,443 –Average = $4,915 –http://www.ncpublicschools.org/fbs/allotments/ support/http://www.ncpublicschools.org/fbs/allotments/ support/

15. Budget Considerations Local funds vary by LEA In 2013-14 range from $420 to $3,937 Some LEAs have a charter school for the first time and may not have information available.

16. Budget Considerations Federal Funds are supplemental and not intended for base funding

17. New Charter School Checklist Obtain Tax Exempt Status Obtain a Certificate of Occupancy Establish a Bank Account

18. Vendors and Contractors Retirement - Teachers’ and State Employees’ Retirement System or other Health Insurance -the State Health Plan or other Accounting Services – Internal or contract Insurance provider – Liability insurance Independent auditor

19. Training and Manuals Cash Management training MSA training Allotment Policy Manual http://www.ncpublicschools.org/fbs/allotments/general/ Charter School Finance Manual http://www.ncpublicschools.org/fbs/charterschools

20. Allotment calculations and Timeline

21. Financial and Student Reporting GS 115C-238.29F(f) Schools shall comply with the Uniform Education Reporting System (UERS) Monthly Financial Student Accounting Ad hoc data collection

22. UERS Required Accountable Basis for: Federal Reporting State Reporting Media/General Public General Assembly We are only as good as the data you submit!

23. Chart of Accounts Shows how the allotments were expended. This is the only financial communication between the Charters and DPI. DPI uses this data to communicate to the State Legislature, the State Budget Office, media and the Federal Government.

24. Chart of Accounts Uniform Accounting System for all LEAs and Charters Information Gathering Consistency amongst LEAs and Charters Comparability between years Decision making tool www.ncpublicschools.org/fbs/finance/reporting

25. Chart of Accounts Data in the chart is used for: –Highly qualified teacher reporting –Teacher certification requirement (50% rule) –Reporting to the General Assembly, Federal Government, media and general public on past and future education initiatives –Building the budget –Research and Statistics

26. Account String Fund-Purpose-PRC-Object A-BBBB-CCC-DDD 1-5110-036-121

27. Reading an Account Code 1-5110-036-411 State - Regular Curricular - Charter Schools - Supplies and Materials 1-5270-036-121 State - LEP - Charter Schools - Salary - Teacher 1-6550-036-171 State – Transportation- Charter Schools - Salary Driver

28. Datafile Submit these files to us on a monthly basis Payroll Accounts Payable Software will create these files Schedule: http://www.ncpublicschools.org/fbs/finance/reporting/ http://www.ncpublicschools.org/fbs/finance/reporting/ Review the files and reconcile Provide you financial reports

29. Financial Reports Access these reports via WS_FTP PRO Software ALTARPO1 - Budget Allotment Revision ALTINRP1 - Planning Allotments JHA 305 - Local Account Balance Reconciliation JHA 705 - Budget Balance Reconciliation JHA714 - Cash Balance Report Monitor - Monthly Monitoring Report

30. Cash Management Establish a ACH bank account with the State Treasurer’s Office. Allow 2 weeks –ACH Bank Account Authorization Form –Voided Check or Original Deposit Slip (Cannot accept temporary checks) Establish access to the Cash Management System (CMS) – Complete Security Forms –CICS Application Maintenance Form –RACF02 Site Security Officer Form –RACF03 RACF User ID Maintenance Form Complete Bill Action Code Form – ITS Access

31. Cash Management Know the cash calendar and funds requirement date (FRD) Do not order more cash than needed to cover the current expenditures It is against state and federal law to hold their cash for more than 3 days. (GS147-86.11) Guidelines and forms www.ncpublicschools.org/fbs/finance/cash/

32. Charter Financial Training Spring 2015 Date TBD – Education Building (DPI) Required Topics Covered – Financial Personnel –Forms Needed for access to systems –Cash Management –MSA (DPI General Ledger) System –Required Software –Chart of Accounts –Zero Out Process

33. Student Accounting Principals Monthly Report (PMR) –Due Monthly –Submitted via PowerSchool –Source of Average Daily Membership (ADM) –Student Accounting Reports School Attendance and Student Accounting Manual: http://www.ncpublicschools.org/fbs/accounting/manuals/ http://www.ncpublicschools.org/fbs/accounting/manuals/

34. Student Accounting School Activity Report (SAR) –Who, What, When and Where of the School –Accuracy of Data –Uses of Data SAR Manual: http://www.ncpublicschools.org/fbs/accounting/manuals/ http://www.ncpublicschools.org/fbs/accounting/manuals/

35. Take Aways Data reporting is NOT optional (must be in our required format – on time) –Financial Datafile – UERS Transfer Schedule –PMR – PowerSchool –SAR – PowerSchool Board of Directors is responsible for data submitted Decisions made based on submitted data No access to funds until approximately 2 weeks after CO is submitted DPI Provides Cash Management Training (Required for all new schools)

36. Contacts Financial Related Questions –Roxane Bernard (919) 807- 3725 PMR Questions –Ozella Wiggins (919) 807-3757 SAR Questions –Sandra Johnson (919) 807-3737