Finance/Budget Information & Guidance for New

Application – Section 20 Budget Common Mistakes Overestimating projected enrollment.
Average enrollment of recently opened charter schools in Palm Beach County is 105.

Current average enrollment of charter schools Palm Beach County is 460.

There are only 5 charter schools with enrollments above 1000.

There are only 14 charter schools with enrollments above 500.<br>

Application – Section 20 Budget Common Mistakes Inadequate budget (salary and non-salary) to meet the needs of special education or other special program students. Palm Beach County ESE population is 21% (not including gifted).
Inadequate budget for teacher salary and benefits. New applicants must be competitive with charter schools in Palm Beach County. Current charter school average salary estimate is $55,620 and benefit rate is 25%
Inadequate budget for technology needs. DOE recommends 1 to 1 ratio.
Inadequate budget for transportation.
Inadequate budget for Governing Board training requirements as required by section 1002.33, Florida Statute, and Rule 6A-6.0784, Florida Administrative Code.<br>

Application – Section 20 Budget Common Mistakes Not providing a verification and/or commitment letter for additional funds included in the budget (not including FEFP revenue). If an agreement is not from a financial institution, additional support of financial solvency is required (audited financial statement, provide board minutes, tax returns, etc).
Using federal or competitive grant funds, food service, transportation, referendum, and/or afterschool revenues to balance the budget
Including capital funds in the first year of operations. Most schools will not meet the conditions in 1013.62 F.S. until the third year of operations
Budgeting 100% enrollment without incorporating an adequate reserve<br>

Application – Section 20 Budget Common Mistakes Inadequate budget for facilities:
Additional support should be provided for per square foot lease rates of less than $12, such as lease agreement.
Using the per student facility estimate – there is not enough information for the district to determine whether all costs were considered
Using the financing calculator to purchase a building. Unless you have already received approval from a financial institution do not use the financing calculator. If your financing agreement is not from a financial institution, additional support of financial solvency is required (audited financial statement, provide board minutes, tax returns, etc).<br>

Application – Section 20 Budget Common Mistakes Inadequate budget for security and mental health services (Marjory Stoneman Douglas Public Safety Act, SB 7030)
School Resource Officer - Palm Beach County Sheriff’s Office charges $90 per hour, which equates to roughly $130,000 per school year.
School Safety Officer – School District of Palm Beach County Police Department cost of an officer is roughly $165,000 per school year.
School Security Guard – (Must meet all criteria provided under 1006.12(4) F.S.) Minimum $38.50 per hour, and a minimum yearly cost of $55,500.
Not having sufficient reserves to cover unexpected events, i.e. lower enrollment than projected (should be 5-15% of total revenue)
Overall lack of consistency between sections<br>

Application – Section 20 Budget Common Mistakes Examples of lack of consistency between what is documented in the applications and what is included in the budget
Target Population and Student body does not match
Not enough teachers based on the school calendar and schedule
Insufficient funds allocated to purchase the comprehensive educational programs/instructional materials (curriculum) described in the application
Not enough funds allocated to computers or network systems necessary to implement the curriculum
Insufficient funds to provide the elective courses offered as described in the application
Insufficient funds allocated for assessment and evaluation tools used by the school as described in the application<br>

Application – Section 20 Budget Common Mistakes Examples of lack of consistency between section, continued

Insufficient staff and support services (consulting) for exceptional students as described in the application
Insufficient staff and support services for English language learner students as described in the application
Insufficient funds allocated for board professional development or board training
Insufficient funds allocated for teacher and leadership development
ESP fee and service structure different from the one described in the application
Compensation plan different from the one described in the application, including benefits and retirement plans<br>

Application – Section 20 Budget Common Mistakes Examples of lack of consistency between sections, continued

Insufficient funds for recruiting and marketing strategies to enroll students as described in the application
Insufficient funds based on the desired facility space and cost
Budget does not align with the transportation plan
Budget does not align with the food service plan
No budget for premiums for the insurance policies described in the application
Budget or cash flow does not follow the timelines described in the application<br>

Application – Section 21 Financial Management & Oversight Common Mistakes Including board members that lack strong financial experience

Not having adequate board review of financial statements

Not having a documented budget amendment process requiring board review<br>

Application – Section 21 Financial Management & Oversight Common Mistakes Not hiring a qualified accountant

Not having proper segregation of duties

Not addressing annual audit requirements including 1002.33(9)(j)(1), 218.39, 218.391, 1002.345 F.S, and 6A-1.0081, F.A.C.

Not having documented financial policies and procedures<br>

State & Federal Financial Assistance Capital Outlay (see F.S. 1013.62)
Charter School Program (CSP) Grant -(Competitive)
Title I
IDEA
National School Lunch Program
Pursuant to provisions of 20 U.S.C. 8061 s. 10306, all charter schools shall receive all Federal funding for which the school is otherwise eligible, including Title I funding, not later than 5 months after the charter school first opens and within 5 months after subsequent expansion of enrollment.<br>

Websites & Resources FLDOE Choice School Website www.floridaschoolchoice.org/Information/Charter_Schools/

Charter Support Unit http://www.flcsu.org/

FLDOE – Red Book www.fldoe.org/fefp/redtoc.asp

Florida Auditor General www.myflorida.com/audgen/

Florida Statute www.leg.state.fl.us/statutes/

Florida Administrative Code www.flrules.org/

SDPBC Charter School Fiscal Oversight https://www.palmbeachschools.org/Page/1442<br>

Contact Information Simone Oladejo
Senior Financial Analyst – Charter School Fiscal Oversight
561 434-8230
simone.oladejo@palmbeachschools.org
Fred Passelli
Specialist – Financial Accounting (FEFP & Other Payments)
561 434-8636
frederick.passelli@palmbeachschools.org<br>