1. 10 Things Every Charter Needs to Know About Finance Charter Conference – Session 3.1 – Charter Finance Basics April 23, 2013

2. Sections of Charter Law 59-40-50 (B) 3 – financial reporting requirements 59-40-60 (E) 1 – charter committee responsibilities 59-40-60 (F) 6 – charter school application 59-40-110 (C) 3 – Revocation 59-40-140 – formula for funding

3. Financial Viability Sustainable, Financially Solvent The Charter has: Identified potential grant opportunities Clean yearly audits Strong, internal, fiscal controls Awareness of available, state/federal funding Forced public/private partnerships

4. Top 10 Things You Need to Know

5. # 10 – Budget and Planning The Funding Manual and Financial Accounting Handbook are your friends Become very familiar Know what funding you are entitled to Understand Revenue and Expenditure categories Links to Manuals http://ed.sc.gov/agency/as/ http://ed.sc.gov/agency/cfo/finance/Fiscal-Systems/documents/2012- 2013FundingManual.pdf http://ed.sc.gov/agency/cfo/finance/Fiscal-Systems/documents/2012- 2013FundingManual.pdf

6. #9 – Location of Information – Be Informed! SCDE Website – Office of Chief Financial Officer – ed.sc.gov Fiscal Systems Newsletter Payments to Districts

7. #8 – Projections for Enrollment Do NOT over estimate students in first year of operation 5 th day of school estimates Adjust on 45th-day Adjust on 135th-day Documentation of students Understanding Grade spans – EFA Categories

8. EFA Categories Kindergarten 1.30 Primary (1.3) 1.24 Elementary(4-8) 1.00 High School (9-12) 1.25 TMH 2.04 Speech 1.90 Homebound 2.10 EH 2.04 EMH1.74 LD1.74 Hearing2.57 Visual2.57 OH2.04 Vocational1.29 Autism2.57

9. What Weights to Use?? When developing a charter budget it is best to use the following: 90% students in grade level you are serving 5% Speech 5% Learning Disabled If you are serving entire special education category, budget in categories of students you are serving

10. #7 – Revenues/Expenditures Financial Accounting Handbook Revenue/Expenditure definitions Funding Manual Programmatic spending guidelines Salaries (100) Fringe Benefits (200) Purchased Services (300) Supplies/Materials (400) Capital Outlay (500) Fund Knowledge – 100, 200, 300. 400, 500, 600, 700, 800, 900 200’s, 800’s and 900’s are combined into special revenue funds

11. #6 – Release of Categorical Funding What am I entitled to? Money based on the students you serve and the programs you offer Where do I find it? Who do I talk to? Federal Categorical funding State Categorical funding

12. #5– Federal Categorical Funding Federal funding is based on reimbursement – You must spend first, then get reimbursed. Claims must be accurate and complete – include required documentation required by Charter Office Procedure for record review of planning and implementation grants

13. #5 – Cont State Categorical Funding Reading High Achieving Students Vocational Professional Development At Risk Student Funding Teacher Supplies National Board K-8 Science Kits Formative Assessments Lottery Education License Plates

14. Base Funding – Everyone Receives Charter District Full Base Student Cost – for next year estimated to be $2,101 Additional Funding – Brick and Mortar - $3250 per student ($5,351 per pupil) Virtual - $1700 per student ($3,801 per pupil) Other Districts Based on audited financial reported expenditures of sponsor district Average across the state is currently is $5,818

15. #4- Relationships Use PIPP – Be Professional, Informed, Positive and Proactive Maintain close relationships with district finance staff Understand the program requirements for funding before asking for them

16. #3 – Audit Requirements Your annual audit is not an option!! Due Dates Who performs the audit? Single Audit Guide

17. #2 – Why Charters Close Financial Viability is a MUST! Understand your budget – have a balanced budget Maintain auditable financial records Maintain Adequate Cash Flow Demonstrate compliance with state/federal laws regarding funding

18. #1 – No Data = No Money $$$ ADM PCS Special Ed Lunch Counts

19. Questions?????

20. Contact Information Mellanie Jinnette Director, Office of Finance 803-734-3605 mjinnett@ed.sc.gov