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20082009 Adopted Budget

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Title: 20082009 Adopted Budget


1
West Sacramento Early College Prep Charter School
October 7, 2008
  • 2008-2009 Adopted Budget

www.wsecp.org (916) 375-7680 (916) 375-0930
FAX 919 Westacre Rd. West Sacramento, CA 95619
2
Table of Contents
1. Introductory Section………Page 1
2. Organizational Section….Page 22
3. Financial Section………...Page 38
3
Introductory Section
Principals Message……….Page 4
Board of Directors…………Page 5
Organizational Chart………Page 6
Executive Summary……….Page 7
4
Principals Message
  • October 7, 2008
  • As Principal of the West Sacramento Early College
    Prep Charter School, it is my distinct pleasure
    to present you with the 2008-2009 Budget. This
    past school year was an exciting year filled with
    many achievements by our students and staff. We
    completed our first year of operations and are
    pleased to report the end of a successful school
    year filled with collaboration with our
    supporting organizations, UC Davis, Sacramento
    City College and Washington Unified School
    District. Although we, like everyone else, have
    experienced hardship in these times of state
    fiscal crisis, as you can see from the following
    report, we continue our pursuit of academic
    excellence.
  • Our chief business officer and I have been
    meeting since April to review our budget
    priorities for the 2008-09 budget. A proposed
    budget was accepted by the board of directors at
    its June 26th meeting. With the recent adoption
    of the State budget for 2008-09, we have now been
    able to finalize the revenue portion of our
    general fund budget. Unfortunately, our revenue
    limit revenue was reduced by 33,000 based on
    lower than anticipated enrollment in 6th grade.
    Lottery funding has been reduced in the final
    state budget which also resulted in a 2,000 loss
    in revenue. Because of conservative budgeting by
    the board, the reductions to the expenditures
    were minimal with no reduction of staff. We will
    be able to continue to provide excellent
    educational opportunities to our students and
    improve the fiscal soundness of West Sacramento
    Early College Prep Charter School without the
    need of a start up loan from Washington Unified
    School District. This budget document is much
    more than numbers. You will see that a large
    percentage of the money spent by our school goes
    to hiring people who directly or indirectly
    support our students. The document will also
    provide you with an understanding of all aspects
    of the operation of West Sacramento Early College
    Prep Charter School including our governance and
    administrative structure, the formulas that are
    used to allocate funds, and a summary of student
    achievements. This budget document represents
    our fiscal plan to provide an educational program
    for all students of the charter school as we
    continue our vision to prepare our students for
    success in college and beyond. If you have any
    questions or need additional information or
    further explanations on any aspect of the Adopted
    Budget, please feel free to call me at (916)
    375-7680. I, along with our staff, will meet
    with you to answer your questions and/or listen
    to your concerns.
  • Yolanda Falkenberg,
  • Principal, WSECP Charter School

5
Board of Directors
  • President, Harold Levine
  • Vice President, Deborah Travis
  • Secretary, Steven Lawrence
  • Treasurer, Ursula Ruffalo

6
Organizational Chart
7
Executive Summary
  • West Sacramento Early College Prep Charter School
    serves students primary from the Washington
    Unified School District in the City of West
    Sacramento. Our class population is limited to
    60 students per grade level. For 2008-09, we
    operate grades 6, 7 and 8. We will continue to
    add an additional grade level each year until we
    operate grades 6-12.
  • A Different Kind of School
  • Several characteristics set our school apart
  • - A learning environment where students are
    safe, well cared for, and treated as
    individuals - Small school with personalized
    learning opportunities - A clear and explicit
    focus on college-going - A strong connection with
    the community and local neighborhood - A sense of
    community within classrooms and throughout the
    school  - A challenging and engaging learning
    environment
  • Focus on Results The curriculum and teaching
    philosophy are designed to serve students who
    have had difficulty succeeding in traditional
    middle and high school classrooms. Every graduate
    of our school will have completed the courses
    required for the University of California and the
    California State University. While in high
    school, students will have the opportunity to
    enroll in up to eight college courses.

8
Executive Summary
  • The West Sacramento Early College Prep Charter
    School is designed to provide an exceptional
    education that will empower students to excel
    inside and outside of school. By preparing all
    students to succeed in college and an
    increasingly global workplace, the school hopes
    to create a community of motivated, educated
    life-long learners.
  • The budget process starts in January of each year
    with the State of the State Address by the
    Governor and continues through this adopted
    budget plan for the coming fiscal year. West
    Sacramento Early College Prep (WSECP) Charter
    School, like most charter schools in California,
    is dependent upon the State for much of its
    revenue each year. The Charter Schools Adopted
    Budget revenue projection is developed based on
    the State Budget, along with the Charter Schools
    student enrollment projection for the budget
    year.

9
Revenue Limit Summary
  • Revenue Limit Funding
  • State of California has been marred by the budget
    crisis over the last several years. The start of
    the 2008-09 school year is very encouraging for
    WSECP Charter School, with almost full enrollment
    in 7th and 8th grade and an improvement of 14 in
    the size of the 6th grades class. Revenue limit
    income is almost 99 percent of the entire charter
    school budget. The state only granted an cost of
    limit increase of 0.68 percent and these
    increases are used to cover all increased supply
    costs, and increased salary and benefit costs.

10
Summary of Revenues
  • The Charter Schools total budgeted revenue for
    2008-09 is 1,058,676. This is a increase of
    388,599 from the 2007-08 unaudited actuals
    revenue of 670,077. This increase is mainly due
    to increased enrollment and the additional
    revenue source of lottery funding.

Prior Year
Budget Year
11
Summary of Proposed Expenses
  • The Charter Schools total budget expense for
    2008-09 is 986,371. This is an increase of
    244,034 compared to the unaudited actuals. Most
    of the increase is because our student enrollment
    has increased by 60. WSECP also hired a Chief
    Business Officer to take on some of the duties
    that were charged to operating costs last year.

Prior Year
Budget Year
12
  • West Sacramento Early College Prep Charter
    Schools Enrollment Patterns
  • Many school districts and charter schools
    throughout California experienced a decline in
    student enrollment during previous years but
    WSECP has increasing enrollment because of a rise
    in the popularity of our school as well as adding
    an additional grade.

13
School Staffing
  • As with any educational organization, people
    and/or positions are the key factors in budget
    development. The success of the Charter School is
    dependent upon the quality of staff in the
    School. WSECP Charter School employees have
    allowed the District to meet the aims of the
    Governing Board.
  • The certificated and classified staff all play a
    key role in continuing the Charter Schools
    success. The certificated staff have played a key
    role in maximizing student achievement while the
    classified staff have been essential in
    supporting the educational programs. All of WSECP
    Charter Schools employees help to ensure the
    safe and positive learning environment at WSECP.
  • With the addition of a new grade level, two new
    6th grade teachers were hired while our previous
    teachers took on the task of creating an 8th
    grade curriculum. We also hired a math teacher
    to replace a departing teacher. Our school
    administrative assistant was made full time and
    we hired our own half time Chief Business Officer
    to handle our finance, risk management and human
    resources duties.

14
Ending Fund Balance
  • Examining a charter schools unrestricted Net
    Ending Balance over a series of years can provide
    a good overview of a charter schools fiscal
    health and stability. While examining the current
    year's unrestricted balance is an essential part
    of good fiscal management, examining the balance
    over a course of years can provide an additional
    image of Charter Schools fiscal strengths or
    weaknesses. The "unrestricted" Net Ending
    Balance--the year end balance that reflects the
    income that can be expended as the local agency
    determines--is the most-watched single
    characteristic of a charter school's fiscal
    health. Charter Schools are recommended to have
    minimum balances available to meet potential
    emergency needs. Assuring that adequate balances
    are available at the end of the year is an
    important part of Charter School fiscal
    management.

15
Budget Adoption
  • The Adopted Budget document provides the reader
    with a detailed review of the goals and
    objectives of West Sacramento Early College Prep
    Charter School and the school allocates its funds
    to meet those objectives. The budget has been
    completed using the ASBO Meritorious Budget
    format to provide the reader with a more readable
    document in understanding the charter school
    budget and California school finance. In the
    2008-09 fiscal year, West Sacramento Early
    College Prep Charter School is projecting to
    receive 1,058,676 and spend 986,371 from the
    general fund with a staffing of 9.5 full-time
    equivalent employees. One school site with grades
    6-8 will be served with the vision to provide an
    exceptional education that will empower students
    to excel inside and outside of school. By
    preparing all students to succeed in college and
    an increasingly global workplace, WSECP Charter
    School will create a community of motivated,
    educated life-long learners.

16
Multi Year Projections
  • Often, looking at one or two years of financial
    data will not provide the reader with the ability
    to observe financial trends. The Charter School
    provides one year of prior data, the budget for
    the current year and three years of projected
    data for our only fund, the general fund. The
    projections take into consideration economic
    forecasts for the State of California and a
    variety of other issues. Most projections for
    future years are calculated at 4.5 increase for
    certificated and classified salaries. Benefits
    and non-salary expenses are projected based on
    anticipated growth and expected increases in
    costs of materials/services. The financial
    projections for the next three fiscal years are
    positive and it is projected that by 2011-12, the
    District will have a General Fund ending fund
    balance of more than 500,000.

17
English Language Learners
  • ELL students at WSECP are tested each fall using
    the California English Language Development Test
    (CELDT) with respect to the percent of students
    who are attaining English proficiency. English
    proficiency is defined by the State as achieving
    an overall score at the Early Advanced or
    Advanced proficiency level on the CELDT.
  • The data is for our 08-09 students divided by
    grade level. We will use this information as a
    baseline to evaluate our ELL student progress in
    the future.

18
STAR California Standards Test English Language
Arts Grade 6
  • Results from STAR tests taken in May 2008 for 6th
    grade. A majority of our 6th grade students came
    from Westfield and Elkhorn.

19
STAR California Standards Test English Language
Arts Grade 7
  • Results from STAR tests taken in May 2008 for 7th
    grade. A majority of our 7th grade students came
    from the Golden State Middle School Attendance
    Area.

20
STAR California Standards Test Math Grade 6
  • Results from STAR tests taken in May 2008 for 6th
    grade. A majority of our 6th grade students came
    from Westfield and Elkhorn.

21
STAR California Standards Test Math Grade 7
  • Results from STAR tests taken in May 2008 for 7th
    grade. A majority of our 7th grade students came
    from the Golden State Middle School Attendance
    Area.

22
Organizational Section
Charter Organization……….Page 23
Budget Factors used for 2008-09 General
Fund…………………Page 29
Budget Calendar…………..…Page 33
Budget Development Process…………………..……Page 37
23
Charter Organization
  • Organized as a charter school in 2007, WSECP is
    administered through a nonprofit public benefit
    corporation formed by the Washington Unified
    School District (WUSD), Sacramento City College
    and UC Davis. The Washington Unified School
    District, the Regents of the University of
    California on behalf of UC Davis, and the Los
    Rios Community College District desired to
    collaborate by using their respective know-how
    and expertise to establish a public charter
    school. A new West Sacramento Early College Prep
    (WSECP) Charter School in the City of West
    Sacramento provides an exceptional opportunity
    for students in the Washington Unified School
    District to achieve the promise of a
    postsecondary degree. It will also afford an
    opportunity to create and investigate the
    learning conditions that have to be promoted in
    secondary schools and their local communities to
    promote educational engagement and attainment.

24
Governance
  • The West Sacramento Early College Prep is
    governed by four (4) member Board of Directors
    whose roles and responsibilities will include but
    not be limited to establishing broad policies
    that affect the West Sacramento Early College
    Prep by approving the schools annual budget, and
    overseeing the schools financial affairs. The
    Board of Directors will be responsible for hiring
    a Principal who will be responsible for
    management of the day-to-day affairs of the
    School. The composition of the Board of Directors
    will be as follows
  • The Superintendent or his/her designee from
    Washington Unified School District
  • One representative from the University of
    California at Davis
  • One representative from Sacramento City College.
  • One representative from the Community

25
Mission
  • The mission of West Sacramento Early College Prep
    Charter School, using a diverse set of approaches
    to learning, is to provide educationally
    disadvantaged students with an exceptional
    education that will allow them to excel inside
    and outside of school. The School strives to
    ensure that students are prepared for college and
    for the 21st Century world and workplace by
    becoming thoughtful and engaged global citizens.
  • The West Sacramento Early College Prep Charter
    School will improve learning opportunities for
    educationally disadvantaged students and increase
    learning opportunities for its students according
    to the following guiding principles
  • Create successful lifelong learners through an
    engaging and challenging college preparatory
    curriculum.
  • Support for every child through a) a foundation
    of nurturing relationships between teachers,
    staff, and community members in the school and b)
    a diversity of approaches to learning.
  • Focus on 21st Century problems through
    inquiry-based learning, developed with the
    philosophy of teaching how real practitioners
    (scientists, historians, physicians, legal
    experts, etc.) think and "do" their craft.
  • Promote student academic, social, and emotional
    well-being, self-efficacy, independence, and the
    opportunity to obtain college credit as part of
    their high school experience.
  • Create a small school learning community, with a
    higher than average ratio of adults to students.
  • Foster deep and ongoing engagement with parents,
    families, and community members. It will be a
    community school, physically located in or near
    the community we intend to serve.
  • Create a professional learning community among
    teachers, administrators, and other school
    leaders that emphasizes cooperative professional
    learning.
  • Serve as an important learning organization which
    focuses on both promising educational practices
    and on the conditions that must be in place to
    bring about change in the learning skills,
    achievement, and success opportunities of
    historically underserved learners.

26
Educational Philosophy
  • The educational program of the West Sacramento
    Early College Prep consists of a challenging core
    curriculum, with outstanding staff, high
    standards and expectations, support, and
    personalized learning opportunities. Among the
    goals of the West Sacramento Early College Prep
    is the objective of enabling students to become
    self-motivated, competent, and life-long
    learners.
  • Class sizes will be kept to an average of 30
    students per class, not to exceed 33. However,
    individual class sizes will vary depending upon
    the instructional activities.

27
Students to be Served
  • The West Sacramento Early College Prep opened in
    2007-08 as a campus serving approximately 100
    students in grades 6 and 7 (60 students max per
    grade level) and will expand to serve up to 630
    students in grades 6 through 12 by adding a grade
    level each year in sequence (i.e., add grade 8 in
    2008-09, etc.).
  • Although the School will draw from the District
    as a whole, the focus will be on recruiting
    students in a manner to ensure a diverse student
    body. Many students living in the District face
    tremendous obstacles to attending college or
    pursuing their career goals including language
    barriers, lack of resources, peer pressure, poor
    learning habits, and limited success in mastering
    academic skills. Many students hope to become
    the first in their family to attend college. The
    Schools educational program is based on the
    instructional needs of our students, who are
    educationally disadvantaged young children,
    including those who
  • Come from economically disadvantaged families and
    the economically disadvantaged neighborhood
    cachement area (s) for the school and/or
  • Are first-generation college-goers and/or
  • Do not speak English as their first language
    and/or
  • Are underachieving in math, reading, and writing
    and/or
  • Whose academic needs necessitate a small school
    environment with personalized attention and/or
  • Who have not experienced success in a traditional
    school environment.

28
Charter Funds and Location
  • At this time, West Sacramento Early College Prep
    Charter School only operates one fund, the
    general fund. All of the revenue it receives is
    unrestricted.
  • There is one school site for West Sacramento
    Early College Prep Charter School located at 919
    Westacre Road in West Sacramento at the former
    site of Evergreen school. We currently share the
    campus with the 6-8 grades of Westmore Oaks
    Elementary and a Pre-School.

29
Budget Factors Used for the 2008-09 Budget
Enrollment and Employment
  • Average Daily Attendance (ADA) Calculation 95
    ADA of enrollment (as of 10/1/08) was used for
    08/09. For the 9th grade class in 09/10,
    enrollment drop of 15 is anticipated because of
    the opening of the new River City High School.
    We expect to see those students return or be
    replaced, but to be conservative, the ADA for the
    9th grade class in 09/10 used is 95 of 85 of
    full enrollment. 95 of full enrollment
    estimated for all future years. Percentage is
    below ADA percentages of other charter schools in
    the Sacramento area and is lower than our average
    ADA for 07/08.
  • Percentage of Free and Reduced-Price Lunch for
    Students The percentage that is being used is
    88 this is the average free and reduced-price
    lunch number for WSECPs student population in
    07-08.
  • Percentage of LEP Students The percentage that
    is being used is 42 this is the average
    percentage of LEP students for WSECPs student
    population in 07-08.
  • Number of Teachers WSECP Charter School has 7
    teachers 08/09. The budget includes 9 teachers
    as well as one guidance counselor in 09-10, 12
    teachers/1 guidance counselor in 10-11 and 15
    teachers/2 guidance counselors in 11-12.

30
Budget Factors Used for the 2008-09 Budget
Revenues
  • Principal Apportionment 08-09 estimates are
    based on revenue limit estimates provided by
    School Services of California for state budget
    signed in September. For 09/10 and 10/11, no
    revenue limit increases are included as
    recommended by the California County
    Superintendents Educational Services Association.
    In 11/12, the percentage increase of the funded
    revenue limit change provided by School Services
    of California was used to estimate revenue limit
    amounts.
  • Federal Revenues WSECP has applied for federal
    revenues through the consolidated application
    process. If the charter qualifies for federal
    revenues, those amounts will be added to the
    budget in the 1st or 2nd Interim Budgets when
    accurate amounts are known.
  • Other Categorical Revenues and Local Grants
    Amounts will be added to the budget in the 1st or
    2nd Interim Budgets when accurate amounts are
    known.
  • Special Education Currently we are deemed a
    public school of Washington Unified School
    District for Special Education funding. No
    encroachment on the general fund is anticipated.
    WSECP Charter has planned a very conservative
    budget that has at least 24 percent of its
    yearly expenses in reserve each year.

31
Budget Factors Used for the 2008-09 Budget
Employment Expenditures
  • Certificated Salaries
  • 1100 Series Teachers Salaries Teacher Salaries
    for 08-09 are based on contracts offered. A 4.5
    increase is included in subsequent years.
  • 1200 Series School Administrative Salaries
    Principals salary is based on the current
    contract amount. A 4.5 increase is included in
    subsequent years.
  • Classified Salaries
  • 2100 Instructional Aid Salaries The 09-10
    budget includes a .5 FTE classroom aide. The
    10-11 and 11-12 budgets includes two .5 FTE
    classroom aides.
  • 2300 Classified Administrators Salaries The
    08-09 budget includes a .5 FTE Chief Business
    Officer. The 09-10 budget increases the FTE of
    the CBO to 1.0. A 4.5 increase is included in
    subsequent years.
  • 2400 Clerical Salaries The school secretary will
    be full time in 08-09 and beyond. In 09-10 an
    additional .5 FTE clerical position is included
    in the budget. A 4.5 increase is included in
    future years.
  • Employee Benefits
  • 3000 Series Assumes existing published rates for
    STRS, PERS, Medicare, OASDI, Unemployment
    Insurance, Workers Compensation, and 10,500 per
    year per employee for health and welfare costs.

32
Budget Factors Used for the 2008-09 Budget
Supplies and Operating Expenditures
  • Books and Supplies
  • 4000 Series Textbooks Other Books Expenses in
    08-09 assume that WSECP purchases 400 in books
    for each new student. An additional 10,000 was
    added in subsequent years to replace borrowed
    books from its authorizing district. In 11-12,
    an additional 100,000 is included for planned
    textbook adoption. Additional costs for supplies
    and equipment reflect the need for furniture and
    technology as we add a new grade each year as
    well as the costs of supplies for school
    administration.
  • Services and Other Operating Expenditures
  • 5000 Series Services and Other Operating
    Expenditures Included in this category are
    expenses for Travel and Conference, Dues and
    Membership and Insurance. Travel and Conference
    amount increased in 09-10 and 11-12 because of
    staff increases as well as plans to send staff to
    the Charter Association Annual Conference held in
    Sacramento on 09-10 and 11-12. Additionally,
    technology services, transportation, health
    services and food services provided for WSECP by
    WUSD are included in this series. The 08-09
    budget includes 156,850 (15,685 per classroom)
    for facilities as requested by WUSD which
    includes custodial services and utilities.
    Starting in 09-10, WSECP Charter will apply for
    Prop 39 facilities from WUSD. Until a new
    agreement is reached, the amounts estimated for
    services and facilities from the district are
    based on projections given to WSECP by WUSD. The
    08-09 budget and subsequent years do not include
    payment for superintendents office, human
    resources or fiscal services because the charter
    will have a chief business officer to assume
    those duties.
  • Direct Support/Indirect Costs 1 of general
    purpose and categorical block grant revenue to be
    paid to chartering agency for oversight is
    included in the Professional Services section of
    the budget.

33
Budget Calendar
  • In October 1991, Governor Wilson signed into law
    Assembly Bill 1200 which became effective on
    January 1, 1992, allowing school districts (and
    now Charter Schools) to choose one of two methods
    for the approval of their local budgets. Since
    our inception in 2007, the Governing Board has
    proposed the single budget adoption process which
    requires a charter school to conduct its public
    hearing and adopt its final budget by July 1 of
    each year. The selection of the single budget
    adoption process further requires a Charter
    School present a revised budget within forty-five
    (45) days of the Governors signing of the State
    Budget, including revisions in revenue and
    expenditures that reflect the funding made
    available by the State Budget Act.
  • The process of developing a school district
    budget is an ongoing function that must be
    addressed by the Board and Administration
    throughout the school year. In order to
    effectively develop a fiscal document that
    reflects the goals and objectives of the charter
    school, the budget process must include a
    well-defined budget calendar outlining when each
    component of the budget is to be completed.
  • Although there are numerous deadlines used in the
    development of the 2008-09 budget, the calendar
    highlights the main steps, specifically those
    involving the Governing Board.
  • Following is the budget calendar for its use in
    the 2008-09 budget adoption process.
  • January 10, 2008 Governors 2007-08 budget
    proposal released
  • May 15, 2007 Governors Budget May Revise
  • May, 2008 Preliminary Budget presentation to
    Board
  • June 26, 2007 2008-09 Adopted Budget approved
  • September 26, 2008 Governor signed 2008-09 budget
  • October 7, 2008 Board meeting to adopt revised
    2008-09 Budget

34
Significant Accounting Policies and Terms
  • The Charter School accounts for its financial
    transactions in accordance with the policies and
    procedures of the Department of Educations
  • California School Accounting Manual. The
    accounting policies of the District conform to
    accounting principles generally accepted
  • in the United States of America as prescribed by
    the Governmental Accounting Standards Board and
    by the American Institute of
  • Certified Public Accountants. The following is a
    summary of the significant accounting policies
  • A. Fund Accounting - The accounts of the District
    are organized on the basis of funds or account
    groups, each of which is
  • considered to be a separate accounting entity.
    The operations of each fund are accounted for
    with a separate set of selfbalancing
  • accounts that comprise its assets, liabilities,
    fund balance, revenues and expenditures, as
    appropriate. Charter
  • resources are allocated to, and accounted for, in
    individual funds based upon the purpose for which
    they are to be spent and
  • the means by which spending activities are
    controlled. The Charter accounts are organized
    into major, non-major, and fiduciary
  • funds.
  • Major Governmental Funds
  • General Fund is the main operating fund (and at
    this time, the only fund) of the Charter. It is
    used to manage all financial resources except
    those required to be accounted for in another
    fund. As we grow, we may find it necessary to
    use the following funds in the future
  • Building Fund is used to account for the
    acquisition of major governmental capital
    facilities and buildings from bond
  • proceeds.
  • Capital Facilities Fund is used to account for
    resources received from developer fees.
  • Non-Major Governmental Funds
  • Special Revenue Funds are used to account for the
    proceeds of specific revenue sources that are
    legally restricted to
  • expenditures for specific purposes. Funds in this
    category are Adult Education Fund, Child
    Development Fund and Food
  • Service Fund (Campus Catering).

35
Significant Accounting Policies and Terms
  • Basis of Accounting - Basis of accounting refers
    to when revenues and expenditures are recognized
    in the accounts and reported in the financial
    statements. Government-wide revenues and
    expenditures are recorded using the modified
    accrual basis of accounting. Fiduciary funds use
    the accrual basis of accounting.
  • Accrual Revenues are recognized when earned and
    expenses are recognized when incurred.
  • Modified Accrual Revenues are recorded in the
    fiscal year in which the resources are measurable
    and become available. Available means the
    resources will be collected within the current
    fiscal year or are expected to be collected soon
    enough thereafter to be used to pay liabilities
    of the current fiscal year. Revenue from property
    taxes is recognized in the fiscal year for which
    the taxes are levied. Revenue from grants and
    entitlements is recognized in the fiscal year in
    which all eligibility requirements have been
    satisfied. Expenditures are generally recognized
    in the accounting period in which the related
    fund liability is incurred. However, debt service
    expenditures, as well as expenditures related to
    compensated absences and claims and judgments,
    are recorded only when payment is due.
    Allocations of cost, such as depreciation and
    amortization, are not recognized in governmental
    funds. When both restricted and unrestricted
    resources are available for use, it is the
    Charters policy to use restricted resources
    first then unrestricted resources as they are
    needed.
  • Budgets and Budgetary Accounting - Annual budgets
    are proposed on a basis consistent with generally
    accepted accounting principles for all government
    funds. By State law, the Charters Governing
    Board must adopt a final budget no later than
    July 1. These budgets are revised by the
    Charters Governing Board during the year to give
    consideration to unanticipated income and
    expenditures. Formal budgetary integration was
    employed as a management control device during
    the year for all budgeted funds. The Charter
    employs budget control by minor object and by
    individual appropriation accounts. Expenditures
    cannot legally exceed appropriations by major
    object account.

36
  • Encumbrances - Encumbrance accounting is used in
    all budgeted funds to reserve portions of
    applicable appropriations for which commitments
    have been made. Encumbrances are recorded for
    purchase orders, contracts, and other commitments
    when they are initiated. Encumbrances are
    liquidated when the commitments are paid.
  • Inventories - Inventories are recorded using the
    consumption method, in that inventory
    acquisitions are initially recorded in inventory
    accounts and the cost is recorded as expenditure
    at the time items are requisitioned. Inventories
    are valued on the weighted average method.
    Reported inventories are equally offset by a fund
    balance reserve which indicates that these
    amounts are not available for appropriation and
    expenditure even though they are a component of
    net current assets.
  • Prepaid Expenses - The District has the option of
    reporting expenditure in governmental funds for
    prepaid items either when purchased or during the
    benefiting period. The District chooses to report
    expenditures in the benefiting period.
  • Capital Assets - Assets purchased or acquired
    with an original cost of 5,000 per unit or more
    are reported as capital assets.
  • Fund Balance Reserves and Designations -
    Reservations of the ending fund balance indicate
    the portions of fund balance not set up for
    expenditure or amounts legally segregated for a
    specific future use. Designations of the ending
    fund balance indicate tentative plans for
    financial resource utilization in a future
    period.

37
Budget Administration and Management
  • Budget Administration and Management-During the
    2008-09 fiscal year, the Board will utilize the
    single step budget calendar in meeting its legal
    requirements regarding the adoption of the annual
    operating budget. The Charters annual Proposed
    Budget is approved at the June board meeting each
    year. Consistent with California Education Code,
    the district must revise its 2008-09 budget for
    all funds within 45 days from the date the State
    adopts its budget (State Budget Act). Once the
    Districts Budget is adopted it will be modified
    to reflect revenue and expenditure adjustments on
    a quarterly basis.
  • Budget Adjustments-Each year quarterly financial
    reports are prepared by the Principal and Chief
    Business Officer for review by the Board that
    reflect updated financial data. In addition,
    prior to the completion of the audited financial
    reports, the Administration prepares a separate
    annual financial report for review. The quarterly
    report, which provides the reader with a summary
    of adjustments made to major object
    classifications of revenue and expenditure
    accounts, is another tool used by management to
    monitor the budget. The quarterly report compares
    the Districts Proposed Budget to the updated
    budget, including all adjustments made to date.
    The report also includes revenues received and
    expenditures made to date. A narrative that
    briefly summarizes major adjustments made
    precedes each funds financial comparison. The
    annual financial report is presented in this same
    format to the Board in August or September of
    each year.
  • Budget Development Process-Preparing the budget
    is an ongoing process that formally begins in
    January of each year for the following July. The
    Principal and Chief Business Officer work
    together to develop a budget which is based on
    the goals and direction of the Charters
    Governing Board
  • Budget Management-Budget management is
    accomplished in part through the Charters fully
    integrated financial software system. Orders for
    outside vendor items are requisitioned by the
    staff and entered into our software system and
    must include a valid account number to which the
    items will be charged. The software verifies the
    validity of the account number and whether
    sufficient dollars are available to cover the
    items being purchased. The system advises the
    user immediately if the order will or will not be
    processed, and if not, why and how the user can
    correct the problem.

38
Financial Section
Summary of Revenue………Page 39
Summary of Expenditures…Page 40
General Fund Balance………Page 45
Multi-Year Projections………Page 46
State Reports………….…..…Page 48
39
Revenue Classifications
  • For reporting purposes, General Fund Revenue is
    divided into four (4) major account
    classifications. Following is a summation of the
    major account classifications and anticipated
    revenues for 2008-09. Our only source of revenue
    that is not considered part of Revenue Limit
    Funding is the State Lottery Funding, which
    represents 1 of our revenue.

40
Expenditure Classifications
  • For reporting purposes, General Fund expenditures
    are divided into seven (7) major account
    classifications. WSECP charter currently only
    uses the following five (5) account
    classifications. The following is a summation of
    the major account classifications and anticipated
    expenditures for 2008-09 as compared to the
    2007-08 actual expenses
  • Certificated Salaries
  • Certificated salaries include teachers,
    administrators, counselors, librarians,
    supervisors, psychologists and other employees
    who maintain a credential with the State of
    California. This expense represents approximately
    42 of total expenditures. It is projected that
    420,746 will be expended on certificated
    salaries in 2008-09. This represents an increase
    of 82,778 over 2007-08.
  • Significant changes in Certificated Salaries from
    the 2007-08 program include the following
  • Two additional teachers hired for the additional
    grade level

41
Expenditure Classifications
  • Classified Salaries
  • Classified salaries are comprised of the
    Districts support staff, including instructional
    aides, clerical, custodial, maintenance, grounds,
    transportation, uncredentialed administrative and
    other personnel who are not required to maintain
    a credential with the State of California. These
    expenses represent approximately 6 of total
    expenditures.
  • It is projected that 67,000 will be expended on
    classified salaries in 2008-09. This represents
    an increase of 46,413. from 2007-08 actuals.
  • Following is a summation of the major changes
    affecting the 2008-09 classified salaries budget
  • Increase the Administrative Assistant from .5 to
    1.0 FTE
  • Creation of new .5 FTE Chief Business Officer
    Position

42
Expenditure Classifications
  • Employee Benefits
  • Employee benefits include all employer
    contributions to retirement plans (State Teachers
    Retirement, Public Employees Retirement,
    part-time Employees Retirement and Social
    Security) and health welfare benefits provided
    to all eligible employees. These expenses
    represent approximately 17 of total
    expenditures.
  • It is currently anticipated that approximately
    165,597 will be expended on employee benefits in
    2008-09. This represents a net increase of
    98,866 from 2007-08.
  • The charter currently received health and welfare
    benefits through Washington Unified School
    district through 12/31/08. We are currently
    working with a insurance broker to obtain health
    and welfare benefits on our own. We hope to
    obtain rates comparable to the rates we received
    through Washington Unified School District.
  • Employee benefits not relating to health and
    welfare benefits are based upon a formula
    percentage of the employees salary.

43
Expenditure Classifications
  • Books and Supplies
  • Books and Supplies include those items which are
    consumed and generally not capitalized, such as
    textbooks, library books,
  • and supplies for the classroom, office,
    custodial, maintenance and transportation areas.
    With the implementation of the States
  • Standardized Account Code structure and GASB34,
    all equipment under 5,000 per item is now
    reflected in this category.
  • Books and supply expenses represent approximately
    4 of total expenditures. It is anticipated that
    approximately 43,000 will be expended on books,
    supplies and other materials during 2008-09. This
    represents an decrease of 30,374 from 2007-08.
    The major reasons for this change is the large
    amount of start up supplies that were needed
    during our first year of operation.

44
Expenditure Classifications
  • Contracted Services and Other Operating
    Expenditures
  • Contracted Services and Other Operating
    Expenditures include items such as utilities,
    repairs, consultants, travel, rent, leases,
    postage, legal fees, liability insurance and
    other service contracts. These expenses represent
    approximately 29 of total expenditures.
  • It is anticipated that approximately 290,028
    will be expended in this classification in
    2008-09. This represents a increase of 46,351
    from 2007-08. The increase is mainly due to the
    need to rent four additional classrooms for our
    increasing student body and staff.

45
General Fund Balance
46
Multi-Year Projections
  • Often, looking at one or two years of financial
    data will not provide the reader with the ability
    to observe financial trends. Accordingly, in this
    section, the Charter provides one year of prior
    data, the budget for the current year and three
    years of projected data for the Charter Schools
    General Fund. The projections take into
    consideration economic forecasts for the State of
    California, local growth trends as determined by
    Washington Unified School Districts consultants
    and a variety of other issues. Most projections
    for future years are calculated at 4.5 increase
    for staff

47
  • Insert 5 year budget

48
State Reports
  • Sacs
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