“Best Practices for Sound Fiscal Management”

“BEST PRACTICES FOR SOUND FISCAL MANAGEMENT”

Charter School Services Corporation (CSSC), A Building Hope Affiliate

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2009 Florida Charter School Conference

Presented by:

Joe Bruno, CPA-President, Building Hope

Richard Moreno, Executive Director CSSC

Building HopeGrowth, Quality, Results for Public Charter Schools2

“Best Practices for Sound Fiscal Management” Charter School Services Corporation A Building Hope Affiliate

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Accounting and Finance

Accounting and Finance


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Select and implement accounting system

Preparation of annual budgets

Daily management of accounts receivables/payables, and

receipts/disbursements

Preparation of periodic financial statements and submission of

required reports

Managing annual audit

Presentations to Board of Directors.

Select and implement accounting system


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Determine needs based on growth plans

Outsource or In House

Quickbooks

Identify Person Responsible for Implementation

Identify ALL Costs of Accounting System

Data Safety

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FRANK AND ERNEST BOB THAVES

“Best Practices for Sound Fiscal Management”Charter School Services Corporation A Building Hope Affiliate

Preparation of Annual Budgets

Preparation of Annual Budgets


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Types of Budgets

Regulatory

Planning

Short vs. Long Range Budgets

Identify Your Revenue and Cost Drivers

Variable vs. Fixed Budget Items

Formats

Daily management of accounts receivables/payables, and receipts/disbursements


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Procedure Manuals

Cash Flow Projections

Posting Entries

Red Book Accounting Funds - fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources

Function Codes - Function classifications indicate the overall purpose or objective of an expenditure.

Object Codes - The object classification indicates the type of goods or services obtained as a result of a specific expenditure.

Web Site for Red Book “http://www.fldoe.org/fefp/redtoc.asp”



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A fund is a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations:

• Permanent Funds

• General Fund

• Debt Service Funds

• Capital Projects Funds

• Special Revenue Funds

• Internal Service Funds

• Fiduciary Funds

• Enterprise Funds



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Function refers to the objective or purpose of an expenditure. Functions are the activities performed to accomplish the objectives of the organization. The activities of schools are classified into four major functional categories as follows:

• Instruction. The activities dealing directly with the teaching of pupils or the interaction between teacher and pupils.

• Instructional Support Services. This includes administrative, technical, and logistical support to facilitate and enhance instruction.

• General Support Services. Those activities associated with establishing policy, operating schools and the school system, and providing the necessary facilities and services for the staff and pupils.

• Community Services. Community Services consist of those activities that are not directly related to providing education for pupils in a school system.



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Object means the goods purchased or the service obtained.

There are eight major object categories provided in the Red Book manual:

Salaries

Employee Benefits

Purchased Services

Energy Services

Materials and Supplies

Capital Outlay

Other Expenses

Transfers

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Preparation of periodic financial statements and submission of required reports


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Florida Statute Now Requires Monthly Financial Reports

Monthly Bank Reconciliations

Board Reports

Annual Financial Reports

Managing annual audit


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Good system of internal controls• Segregation of duties• Checks and Balances• Properly Coding of Revenues and Expenditures

Account Analysis

Prepare and close Financial Reports

Maintaining Fixed Asset Schedules

Early preparation of the Management’s Discussion and Analysis (MD&A)

Maintaining all contracts in easily accessible manner

Presentations to Board of Directors.


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Present financials in a format that is easily understandable

Present all statements submitted to School District officials

Review actual vs. budget

Discuss any material budget variances

Financing (Loans and CE’s)•$42 million in total lending since 2003•Over $17 million in guarantees•Supporting $310 million in facility costs•Supporting over 18,500+ seats•50+ transactions

CS Business Services•Provide accounting and I.T. services to over 25 charter school campuses•Prepared eRate applications for over 50 schools•HR Management•Property Management

Incubator Initiative •Partnership with DC Gov’t •Established 5 incubators for 6 charter schools•Leased and renovated over 110,000 sq ft creating seats for approximately 1,000 students.

Technical Assistance •Assisted over 100 charter schools with business planning, real estate, and finance•Speakers at national conferences and U.S. Department of Education programs•Led ground-breaking conversion of 7 Catholic schools to charter schools •Provide grants for feasibility studies•Support/manage charter school applications for surplus DC school facilities•Project management to build or renovate facilities

Building HopeMission: To close the achievement gap by providing student access to high quality charter school facilities through the provision of the following services:

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* As a % of staff time

Building Hope Funding to Date

Year $ Amount

U.S. Department of Education 2002 $5 Million

Sallie Mae Corporation 2003 $28 Million

U.S. Department of Education 2004 $2 Million

Office of State Superintendent of Education(District of Columbia)

2006 $8.9 Million

The Walton Family Foundation

TOTAL FUNDING

2007 $10 Million

$53.8 Million

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Geographic Focus

60%21%

19%Washington D.C.

Florida

Other

Historical Projected

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“BEST PRACTICES FOR SOUND FISCAL MANAGEMENT”

Charter School Services Corporation (CSSC) A Building Hope Affiliate

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Joe Bruno, CPA-President, Building Hope202-457-1993 – email “[email protected]”

Richard Moreno, Executive Director, CSSC954-767-1070 – email “[email protected]”

Documents

“Best Practices for Sound Fiscal Management”