FISCAL
PERFORMANCE REPORT
2013-2014
ABC ACADEMY
ABC
Academy
ABC
ACADEMY
ABC Academy
:44 PM
24 PM
OUR MISSION
To transform public education through accountability, innovation
and access to quality education for all students.
OUR VISION
We envision a diverse and dynamic public education marketplace
that fosters academic excellence for all children.
The Governor John Engler Center for Charter Schools
Central Michigan University | Mount Pleasant, MI 48859
(989) 774-2100 | www.TheCenterForCharters.org
2
Fiscal Performance Report 2013-2014
© 2015 The Governor John Engler Center for Charter Schools at Central Michigan University
To the dedicated board members serving charter public schools authorized by
Central Michigan University:
On behalf of our entire team at The Governor John Engler Center for Charter Schools
(the Center), I am pleased to present this year’s annual Fiscal Performance Report
(FPR). The FPR focuses on the Academy’s fiscal performance throughout the 201314 school year as it relates to fiscal activities outlined in the Charter Contract. This
report, which is the third of four reports in the Performance Suite, is a tool that
provides critical information to help the Academy work efficiently toward its goals.
As a key tool in making data-informed decisions, the FPR contains information
that will assist in ensuring that the Academy’s educational program is being fully
supported. In addition to making sure as many dollars as possible are reaching the
classroom, maintaining the Academy’s fiscal health and long-term sustainability
is essential in ensuring a successful and viable school. The information within
this report should be used in conjunction with other data, including the Academic
Performance Report (APR) and the Operational Performance Report (OPR), when
making decisions.
Cynthia M. Schumacher
Executive Director
As always, the Center welcomes your feedback in order for us to maximize the
usefulness of this information and to make sure you have the data you need.
We cannot thank you enough for your dedication and commitment to pursuing
excellence for Michigan’s students. Your efforts at creating quality educational
opportunities will help provide each child with the tools they need to be successful
in college, work and life.
Thanks again for keeping kids first!
Cynthia M. Schumacher
Executive Director
Footer
© 2015 The Governor John Engler Center for Charter Schools at Central Michigan University
ABC ACADEMY
3
REPORT SUITE
The annual performance report
suite is made up of three distinct
reports: the Academic Performance
Report, the Operational
Performance Report and the Fiscal
Performance Report, as well as
one capstone report - the annual
Scorecard of School Performance.
These reports, shown to the right,
cover each of the primary content
areas and are intended to provide
a greater understanding of the
Academy’s holistic performance
for a complete academic year (July
through June).
The first report is distributed in
June when the academic data
becomes available, with the
operational and fiscal reports
following suit. The final report,
the Scorecard, is released in the
winter of the following year, as the
summary of the three performance
reports.
ACADEMIC
PERFORMANCE
REPORT
ACADEMIC
PERFORMANCE REPORT
2013-2014
ABC Academy
OPERATIONAL
PERFORMANCE
REPORT
OPERATIONAL
PERFORMANCE REPORT
2013-2014
ABC Academy
FISCAL
PERFORMANCE REPORT
2013-2014
ABC Academy
The third and final performance
report, published annually in the
winter, provides a comprehensive
overview of the Academy’s
financial outcomes for the
previous academic year.
SCORECARD
OF SCHOOL
PERFORMANCE
SCORECARDof
SCHOOL PERFORMANCE
ABC Academy
Fiscal Performance Report 2013-2014
The second performance
report, published annually in the
fall, provides a comprehensive
overview of the Academy’s
operational outcomes for the
academic year ending in June.
FISCAL
PERFORMANCE
REPORT
2013-2014
4
The first performance report,
published annually in the summer,
provides a comprehensive
overview of the Academy’s
academic outcomes for the
academic year just completed.
As a summary of the three
performance reports, published
annually in the winter, the
Scorecard provides an overview
of the Academy’s performance, as
it relates to the Charter Contract.
© 2015 The Governor John Engler Center for Charter Schools at Central Michigan University
TABLE OF CONTENTS
6 ACADEMY OVERVIEW
8 SCHOOL FINANCE
9 ACCOUNTING STRUCTURE
10 BUDGETING
10 Overview
11 Budgeting in the Current School Environment
12 REVENUE
12 Overview
13 Timelines
14 EXPENDITURES
14 Overview
15 Expenditures Breakdown
16 BORROWING HISTORY
17 ANNUAL FINANCIAL AUDIT
18 FISCAL PERFORMANCE
18 Overview
19 Fund Balance & Liquidity
21 END NOTES
Footer
21 Resources, Acronyms & Glossary
23 Sources & Citations
© 2015 The Governor John Engler Center for Charter Schools at Central Michigan University
ABC ACADEMY
5
ACADEMY
OVERVIEW
Demographics
Demographics
Knowing your students and from which communities
they come helps in understanding the make-up of the Academy and the student population
Demographics
it serves. The data displayed in this section represents a summary of the Academy’s demographics for the 2013-2014 school year and provides
an overview of trending and comparison information.
Enrollment by Year
Sources:
28
24
32
4th
6
13-14 13-14
74%8th
7th
Grades Offered:
41
6th
31
5th
CEPI - Public Headcount Data; MSDS
3+ Year Students
MSDS - Fall 2013 Unaudited
9th 10th
11th 12th
Number
of Students
in
45
Enrollment 40
by Year
13%
Chart 2
Chart 3
14%
14%
12%
35
Enrollment by Year:
2 Years
30
3ABC
YearsAcademy
4 Years
Enrollment by Grade:
8%
5 Years
25
7%
8%
25%
CEPI - Public Headcount Data; MSDS
6 Years
7 Years
8+ Years
MSDS - Fall 2013 Unaudited
450
382
20
366
400
348
Student
Breakdown
342 Ethnicity
338
335
325
15
350
LOE 291
1 Year
2 Years 3 Years 10
4 Years 5 Years 6
Your
300
Count
48
50
57
34
Ethnicity
5 44
School
250
Percent
13%
14%
14%
12%
8%
0
American Indian or Alaskan Native
0.3%
200
K
1st 2nd
150
Asian American
2.0%
Fall_2013
1
2
3
4
5
100
Black or African
American
65.9%
50
Native Hawaiian or Other Pacific Islander
0.0%
Chart 3
0
White
22.3%
Racial/Ethnic Breakdown
390
397
Fig. 4
Chart 2
Chart 2
Enrollment by Year:
Chart 3
Enrollment by Grade:
Fig. 5
Contract Term:
AOIS
Fiscal Performance
Report 2013-2014
5) Compiled
by: The Center
for Charter
Schools Central
Michigan
University
© 2015
The Governor
John Engler
Center
for Charter Schools at Central Michigan University
ESP:
Mission Stmt:
AOIS
Notes:
AOIS
Created: 1)5/27/2011
PM
Source: Fall2:04:01
2013 CEPI
- Public Headcount Data
34
32
24
28
13-14
12-13
10-11
09-10
08-09
07-08
06-07
05-06
AOIS
3) Students with duplicate UICs were not included in this count
AOISmay not total 100% due to rounding
4) Percentages
27
Years 7 Years 8+ Years
CMU
State
29
23
100
Average Average
7%
8%
25%
0.3%
0.7%
3rd
4th
5th
6th
7th
2.7%
3.0%
650.2% 718.2% 8+
0.1%
0.1%
38.4%
68.5%
Notes:
Hispanic or Latino
2.3%
2.8%
6.7%
1) Source: Fall MSDS - Unaudited
Sources:
Multi-Racial
7.2%
5.5%
2.8%
2) Years enrolled
calculated by subtracting field 20 (Date of Enrollment) from field 123
(Date of Count)
25
Date Opened:
s in
12th
50
1 Year
04-05
Fig. 1
11th
09-10
27
3rd
08-09
41
31
2nd
10th
Fig. 3
31
AOIS
1234 Abacus Ave. AOIS
Scholastic, MI 42860
sion Stmt:
0
AOIS
AOIS
1st
60
AOIS
2013-2014_MI-63901
Address
K
Enrollment by Year:
Enrollment by Grade:
Chart40
3
20
District Code
Chart 3
9th
Chart 2
34
80
Chart 2
8th
11-12
AOIS
0
Demographics100
7th
32
AOIS
6th
24
AOIS
5th
28
ontract Term:
SP:
4th
27
AOIS
3rd
31
10
120
5
Students
AOIS
2nd
Chart 3
Sources:
ate Opened:
1st
20
Length
of Student Enrollment
15
Prepare students academically for success in
college, work and life.
Grades Offered:
K
20
Mission Statement
20
300
ABC Academy
25
47
15
40
10
355
338
335
07-08
31
20
45
47
Self-managed
30
25
50
27
06-07
Students
Management
ntract Term:
Fig. 2
Number of Students in Each Grade
27
35
05-06
30
40
2012-2017
P:
Enrollment by
325
291
20
Charter Contract
350
300
250
200
150
100
50
0
30
1234 Abacus Ave.
50
Scholastic,45
MI 42860
04-05
34
Grades Served
e Opened:
397
397
450
Number
of Students
in Each
Grade
Number
of Students
in Each348Grade
Address
Chart 2
400
342
K-12
ades Offered:
390
390
12-13 12-13
2013-2014_MI-63901
ally for success in
Mission Stmt:
382
382
Demographics
25
nt
366
366
11-12 11-12
DistrictChart
Code
2
338
335
09-10 09-10
Date Opened
9/1/1995
342
08-09 08-09
ically for success in
338
335
07-08 07-08
ent
325
342
06-07 06-07
ABC Academy
348
348
325
291
291
25
t
Students
1234 Abacus Ave.
1234
Abacus Ave.
Scholastic, MI 42860
Scholastic, MI 42860
450
450
400
400
350
350
300
300
250
200
250
150
200
100
150
50
1000
50
0
05-06 05-06
Address
Address
04-05 04-05
2013-2014_MI-63901
2013-2014_MI-63901
Enrollment by Year
10-11 10-11
Total Enrollment by Year
District
Code
District Code
88.7% General Education
English Language Learners (ELL)
2013-2014
ABC Academy
ABC ABC
Academy
Academy
Notes: ABC Academy
Free and
Reduced
Price Lunch Eligibility
9.4% Reduced
ELL
Student
Pop.
Free Free
and
and
Reduced
PricePrice
Lunch
Lunch
Eligibility
Eligibility
2013-2014
Free
and
Reduced
Price Lunch Eligibility
2013-2014
2013-2014
2013-2014
90.6% General Education
2)
Numbers:
A10.04.00;
D40.03.00
1) Chart
Sources:
1)
Sources:
Fall 2010
Fall
, 2011
2010
MEAP;
,,D30.03.00;
2011
MEAP;
2011
Fall
MSDS
2011
MSDS
Spring 2011,
Spring
2012
2011,
MME;
2012
Fall
MME;
2011Fall
CEPI
2011
Public
CEPI
FRL
Public
DataFRL
ABC
Academy
1)
Sources:
Fall
2010
2011Fall
MEAP;
Fall
2011- Unaudited;
MSDS -- Unaudited;
Unaudited;
Spring
2011,
2012
MME;
Fall
2011
CEPI
Public
FRL Data
Data
Notes:
Free and Reduced Price Lunch Eligibility
1)
Sources:
Fall 2010 , 2011 MEAP; Fall 2011 MSDS - Unaudited; Spring 2011, 2012 MME; Fall 2011 CEPI Public FRL Data
Notes:
Notes:
Notes:
2013-2014
MEAP and MME Achievement Results
Free and Reduced Price Lunch Eligibility
3)
by: The
Center
for,D30.03.00;
Charter
Schools
Central
Michigan
University
2) Compiled
Chart Numbers:
2)
Numbers:
A10.04.00;
A10.04.00;
D30.03.00;
D40.03.00
D40.03.00
2)
Chart
Numbers:
A10.04.00;
D30.03.00;
D40.03.00
1) Chart
Sources:
Fall
2010
2011
MEAP;
Fall 2011
MSDS
- Unaudited;
Spring 2011, 2012 MME; Fall 2011 CEPI Public FRL Data
3) Compiled
3)
by: The
Center
by:
for
Center
Charter
for
Schools
Charter
Central
Michigan
Central
University
University
3)
Compiled
by: The
The
Center
forD30.03.00;
Charter Schools
Schools
Central Michigan
Michigan
University
2) Compiled
Chart
Numbers:
A10.04.00;
D40.03.00
Notes:
Updated:3)7/25/2014
2:43:10
PM
Compiled
TheMEAP;
CenterFall
for2011
Charter
Schools
Central Michigan
University
1) Sources:
Fall 2010 by:
, 2011
MSDS
- Unaudited;
Spring 2011,
2012 MME; Fall 2011 CEPI Public FRL Data
Updated:Updated:
7/25/2014
7/25/2014
2:43:10 PM
2:43:10
PM
Updated:
7/25/2014
2:43:10
PM
COMPOSITE
2) Chart Numbers: A10.04.00; D30.03.00; D40.03.00
Updated:
7/25/2014
2:43:10
PM
3) Compiled
by:
The
Center
for
Charter
Schools
Central
Michigan
University
SUBJECT/
RESIDENT
GRADE
Updated: 7/25/2014
2:43:10 PM
2013-2014
2013-2014
2012-2013
CHANGE
DISTRICT
STATE AVERAGE
Reading 3
61.7%
56.4%
5.3%
58.7%
61.3%
Reading 4
63.6%
69.0%
-5.4%
68.5%
70.0%
Reading 5
79.3%
60.0%
19.3%
68.3%
71.7%
Reading 6
66.7%
70.6%
-3.9%
67.2%
71.5%
Reading 7
77.4%
48.0%
29.4%
54.2%
60.4%
Reading 8
78.9%
44.0%
34.9%
66.4%
72.7%
Reading 11
72.7%
57.7%
15.0%
48.8%
58.7%
Math 3
42.6%
20.5%
22.1%
39.3%
40.2%
Math 4
52.9%
23.3%
29.6%
41.9%
45.3%
Math 5
33.3%
36.7%
-3.4%
41.7%
45.2%
Math 6
24.2%
35.3%
-11.1%
36.4%
41.5%
Math 7
39.4%
24.0%
15.4%
33.6%
39.2%
Math 8
26.3%
12.5%
13.8%
30.7%
34.5%
Math 11
28.1%
20.0%
8.1%
22.7%
28.8%
*Family Education Rights and Privacy Act (FERPA) – Federal law that prohibits student identifiable education data from
being publicly disseminated. A group of 10 or less students is considered to contain student identifiable data.
62% Free
62% Free
62% Free
62% Free
9.6% Reduced
9.6%
9.6%
Reduced
Reduced
62% Free
9.6% Reduced
28.4% Not-Eligible
28.4%
Not-Eligible
Not-Eligible
9.6% 28.4%
Reduced
28.4% Not-Eligible
28.4% Not-Eligible
Fig. 7
General and Special Education Status
General
General
and Special
and
Special
Education
Education
Status
Status
2013-2014
General and
Special
Education Status
2013-2014
2013-2014
2013-2014
General and Special Education Status
2013-2014
General and Special Education Status
2013-2014
11.3% Special Education
11.3%11.3%
Special
Special
Education
Education
11.3% Special Education
88.7% General Education
88.7%
General
General
Education
Education
11.3%88.7%
Special
Education
88.7% General Education
88.7% General Education
Fig. 8
English Language Learners (ELL)
English
English
Language
Language
Learners
Learners
(ELL)(ELL)
English
Language
Learners
(ELL)
English Language Learners (ELL)
2013-2014
2013-2014
2013-2014
2013-2014
2013-2014
English Language Learners (ELL)
2013-2014
Fig. 6
- - No Data Available.
Printed: 7/25/2014 2:39 PM
9.4% ELL Student Pop.
9.4% 9.4%
ELL Student
ELL Student
Pop. Pop.
9.4% ELL Student Pop.
90.6% General Education
90.6%
General
Education
General
Education
9.4% 90.6%
ELL
Student
Pop.
90.6% General Education
90.6% General Education
Fig. 9
COMPOSITE
COMPOSITE
COMPOSITE
SUBJECT/
RESIDENT
COMPOSITE
SUBJECT/
SUBJECT/
RESIDENT
RESIDENT
GRADE
2013-2014
2012-2013
CHANGE
DISTRICT
STATE AVERAGE
SUBJECT/
RESIDENT
GRADE
GRADE
2013-2014
2013-2014 2012-2013
2012-2013 CHANGE
CHANGE COMPOSITE
DISTRICT
DISTRICTSTATE
STATE
AVERAGE
AVERAGE
GRADE
2013-2014
2012-2013
CHANGE
DISTRICT
STATE
SUBJECT/
RESIDENT
Reading 3
61.7%
56.4%
5.3%
58.7%
61.3%AVERAGE
Reading
Reading
3
3
61.7%
61.7%
56.4%
56.4%
5.3%5.3%
58.7%
58.7% STATE
61.3%
61.3%
GRADE
2012-2013
CHANGE
DISTRICT
AVERAGE
Reading 3 2013-2014
61.7%
56.4%
5.3%
58.7%
61.3%
The Composite
Resident
District
(CRD)
illustrates
the
public
school
districts
to
which
students
would
Reading
4
63.6%
69.0%
-5.4%
68.5%
70.0% be assigned if they were not enrolled in the Academy. A
Reading
3
61.7%
56.4%
5.3%
58.7%
61.3%
Reading
4
4
63.6%
63.6%
69.0%
69.0%
-5.4%
-5.4%
68.5%
68.5%
70.0%
70.0%
list
of those4 resident districts
a detailed map showing
of the Academy is shown
Reading
63.6% along with69.0%
-5.4%the location 68.5%
70.0%below. Due to geographical constraints, the map may
Reading
5
79.3%
60.0%
19.3%
68.3%
71.7%
not
show
all
districts.
4
63.6%
69.0%
-5.4%
68.5%
70.0%
Reading
Reading
5
5
79.3%
79.3%
60.0%
60.0%
19.3%
19.3%
68.3%
68.3%
71.7%
71.7%
A.G.B.U. Alex
and Marie Manoogian School
2012-2013
Reading 5
79.3%
60.0%
19.3%
68.3%
71.7%
Reading 6
66.7%
70.6%
-3.9%
67.2%
71.5%
5
Number of
Percent of
79.3%
60.0%
19.3%
68.3%
71.7%
Reading
Reading
6
6
66.7%
66.7%
70.6%
70.6%
-3.9%
-3.9%
67.2%
67.2%
71.5%
71.5%
Reading 6
66.7%
70.6%
-3.9% Macomb County 67.2%
71.5%
Students from
Students from
Oakland
County
Reading
7
77.4%
48.0%
29.4%
54.2%
60.4%
Resident
District
Resident
District
Students' Resident District
ABC
6 Academy
66.7%
70.6%
-3.9%
67.2%
71.5%
Reading
Reading
7
7
77.4%
77.4%
48.0%
48.0%
29.4%
29.4%
54.2%
54.2%
60.4%
60.4%
Rochester
Southfield60.4%
Public School District
113
29.7%
Reading 7
77.4%
48.0%
29.4%
54.2%
1
Reading 8
78.9% West Bloomfield44.0%
34.9%
66.4%
72.7%Public School District
Farmington
42
11.0%
Chippewa54.2%
Reading
77.4%
29.4%
60.4%
(7
!
Reading
8 School
8
78.9%
78.9% 40 48.0%
44.0%
44.0%
34.9%
34.9%
66.4%
66.4%
72.7%
72.7%
Utica
West
Bloomfield
School District
40
10.5%
Valley
Waterford
Birmingham
Reading
8
78.9%
44.0%
34.9%
66.4%
72.7%
Student
1
1
5
Oak Park, School District of the City of
35
9.2%
3
ReadingPopulation:
11
72.7%
57.7%
15.0%
48.8%
58.7%
Hamtramck,
School District of the City of
34
8.9%
Reading
8 11
78.9%
44.0%
34.9%
66.4%
72.7%
Reading
Reading
11
72.7%
72.7%
57.7%
57.7%
15.0%
15.0%
48.8%
48.8%
58.7%
58.7%
Lowest 25%
Troy
Reading 11
72.7%
57.7%
15.0%
48.8%
58.7% Schools
Warren Consolidated
21
5.5%
Bloomfield Hills
COMPOSITE RESIDENT DISTRICT
WHERE YOUR STUDENTS COME FROM
Math 3 25% - 50% 42.6%
Math 3
42.6%
Math 4 Highest 25%52.9%
3
42.6%
MathMath
4
4
52.9%
52.9%
Math 4
52.9%
South Lyon
Math 5 Miles
33.3%
1
4
52.9%
MathMath
5
33.3%
5
33.3%
0
5
10
Math 5
33.3%
Math 6
24.2%
5
33.3%
MathMath
6
24.2%
6
24.2%
Math 6
24.2%
Math 7
39.4%
6
24.2%
MathMath
7
39.4%
7
39.4%
Math 7
39.4%
Washtenaw
Math 8
26.3%
County
7
39.4%
MathMath
8
26.3%
8
26.3%
Math 8
26.3%
Math 11
28.1%
( 28.1%
MathMath
8 11 !
26.3%
Math
11
28.1%
Math 11
28.1%
Math 11
28.1%
Reading
72.7%
MathMath
311 50%
3 - 75% 42.6%
42.6%
Footer
4
20.5%
22.1%
39.3%
Warren
Warren
Woods
57.7%
15.0%
48.8%
20.5%
20.5%5
22.1%
22.1%
39.3%
39.3%
Consolidated
8
20.5%
22.1%
39.3%
3
21
Royal Oak
23.3%
29.6%
41.9%6
Farmington
Southfield
Novi
20.5%
22.1%
39.3%
23.3%
23.3%
29.6%
29.6%
41.9%
41.9%
Madison
42
6
23.3% 113 !
29.6%
41.9%
(
4
Berkley
36.7%
-3.4%
41.7%
Northville
23.3%
29.6%
41.9%
36.7%
-3.4%
-3.4%
41.7%
41.7%
1
36.7%
4
Detroit
Livonia
Ferndale
36.7%
-3.4%
41.7%
10
11
5
35.3%
-11.1%
36.4%
Oak
Park
36.7%
-3.4%
41.7%
35.3%
-11.1%
36.4%
36.4%
35.3%
-11.1%
35
35.3% Dearborn -11.1%
36.4%
Hamtramck
24.0%
15.4%
33.6%
6-11.1%
34
35.3%
36.4%
24.0%
15.4%
33.6%
33.6%
Wayne 24.0%
County
15.4%
Ecorse
24.0%
15.4%
33.6%
Dearborn Heights
12.5%
13.8% 1
30.7%
24.0%
15.4%
33.6%
12.5%
13.8%
30.7%
30.7%
7
12.5%
13.8%
12.5%
13.8%
30.7%
20.0%
8.1%Woodhaven-Brownstown22.7%
12.5%
13.8%
30.7%
20.0%
8.1%8.1% 3
22.7%
22.7%
20.0%
20.0%
8.1%
22.7%
20.0%
8.1%
22.7%
Walled Lake
Consolidated
© 2015 The Governor John Engler Center for Charter Schools at Central Michigan University
40.2%
Livonia
Public Schools School District
58.7%
40.2%
40.2%
Detroit City School District
40.2%
Warren
Woods
45.3% Public Schools
Dearborn
Heights School District #7
40.2%
45.3%
45.3%
Dearborn 45.3%
City School District
45.2%
School
District of the City of Royal Oak
45.3%
45.2%
45.2%
Novi Community School District
45.2%
Bloomfield
41.5%Hills Schools
45.2%
Waterford
School District
41.5%
41.5%
41.5%
Ferndale Public
Schools
39.2%
Northville
Public Schools
41.5%
39.2%
39.2%
Madison District
Public Schools
39.2%
Troy
School District
34.5%
39.2%
34.5%
34.5%
Other
34.5%
28.8%
34.5%
28.8%
28.8%
Total Number
of Districts: 28
28.8%
28.8%
11
10
8
7
6
6
6
5
5
5
4
4
4
15
2.9%
2.6%
2.1%
1.8%
1.6%
1.6%
1.6%
1.3%
1.3%
1.3%
1.0%
1.0%
1.0%
3.9%
Fig. 10
ABC ACADEMY
7
SCHOOL
FINANCE
Overview
Where Does Your Money Come From?
Fiscal management is critical to all organizations and charter public schools are no exception. Each charter public school is basically
a multi-million dollar, non-profit entity that is accountable to taxpayers. As such, each board of directors is entrusted with significant
public resources and has contractual obligations including the stated educational goal and related measures in its Charter Contract.
It is critical that each board member has a thorough understanding of where and how the school’s revenues are generated in order to
effectively manage the outflow.
In 1994, Proposal A significantly changed the way public schools in Michigan were funded, and led to the establishment of charter
public schools. Although all schools in Michigan receive a “foundation allowance” (or per-pupil funding), charter public schools are
unlike their traditional counterpart in that they do not have taxing authority.
Your Academy’s revenue can easily be divided into categories based on the source of revenue: local, state, federal or other. In each of
these categories, the dollars would be either restricted – meaning the funds can only be used for a specific purpose – or unrestricted
– funds that are available for general use.
Within these state and federal categories, there are specific sub-categories, referred to as categorical dollars, including special
education, at-risk and title funding. Examples of local revenue include contributions or funding from local foundations, fee based
school programs or student activities. Finally, the ‘other’ category would account for proceeds from long-term debt transactions and
other unique transfer situations.
The Flow of State Aid
State School Aid
Traditional public schools and charter public schools
alike are funded through the State School Aid Act and
receive funding based upon the foundation allowance
(or per-pupil funding). During 2013-2014, the maximum
foundation allowance a charter public school could receive
was $7,168. The state’s payment schedule provides for
11 state aid payments per year – beginning in October
through the following August. These payments include the
basic foundation allowance as well as categorical funding,
including but not limited to, at-risk and special education
dollars. In accordance with the Charter Contract, the
University is the Fiscal Agent for the Academy Board
for the limited purpose of receiving state aid payments.
Although the Charter Contract allows up to 10 days, the
University makes every attempt to process the state aid
the same day it is received from the Michigan Department
of Treasury. The Revised School Code allows the University
to withhold 3% of all state aid, but the University Board of
Trustees has chosen to recognize the special needs and
specific counts under categorical funding so it only applies
the 3% to funds for general operating purposes. As a
result, the effective rate applied for the University oversight
fee for the 2013-2014 fiscal year was 2.8%.
8
Fiscal Performance Report 2013-2014
The Academy
Student Count
The Academy’s 2013-2014 foundation
allowance was calculated based upon a
“blended student count” consisting of
90% of the Academy’s adjusted fall
headcount (October 2013) and 10% of
the Academy’s spring headcount
(February 2014).
The State of Michigan
MDE and Treasury
Central Michigan
University
The Michigan Department of Education,
Office of State Aid and School Finance,
calculates state aid based upon the
blended student count and forwards the
state aid payment information to the
Michigan Department of Treasury for
distribution.
As the Fiscal Agent for the Academy, the
University receives the state aid and
conducts the following activities:
1. The University oversight fee is calculated
and withheld.
The Academy
Board of Directors
2. If applicable, long or short-term loan
payments are withheld based upon
the terms of the Academy’s intercept
agreement.
3. The University transfers the remaining
funds electronically to the account
designated by the Academy Board.
© 2015 The Governor John Engler Center for Charter Schools at Central Michigan University
ACCOUNTING STRUCTURE
Overview
Accounting Structure: The Basics
The Michigan Public School Accounting Manual, commonly referred to as Bulletin 1022, serves as the mandatory guide to the uniform
classification and recording of accounting transactions for all Michigan school districts, including intermediate and local districts, as well
as charter public schools. It was adopted in 1963 and underwent significant revisions in 1976, 1988 and 2004; it conforms to the 2003
federal Financial Accounting for Local and State School Systems. Revisions occur in order to conform to changes from the Governmental
Accounting Standards Board and Generally Accepted Accounting Principles along with changes in legislation related to state and federal
financial reporting requirements.
The primary purpose of the Michigan Public School Accounting
Manual is to provide a standard framework for reporting financial
data to the state. It is important that all schools recognize that
the standardization of definitions and classifications is critical
to the data gathering process. The Michigan Public School
Accounting Manual provides the minimum requirements, thus
allowing comparability in the recording and reporting of financial
information for all school districts, regardless of size.
State law and the Charter Contract require the Academy to follow
public sector accounting principles as well as the prescribed chart
of accounts found in the Michigan Public School Accounting
Manual. Annually, the Academy is required to submit its audited
financial statements, as prepared by the board-approved
independent certified public accountant, to both the Michigan
Department of Education (MDE) and the Center.
In addition, the Academy is required to submit its Financial
Information Database (FID) data set to the State’s Center for
Educational Performance and Information (CEPI), as well as the
Center. These data sets are used to compile significant reports,
including required state and federal reporting. Stakeholders,
including legislators and bondholders, may refer to these
public reports and could make decisions based upon the
data presented within them. Therefore, it is crucial that the
Academy Board make certain that systems and processes
are in place to ensure a high level of data accuracy.
Footer
© 2015 The Governor John Engler Center for Charter Schools at Central Michigan University
For more information on the Michigan Public School Accounting
Manual (Bulletin 1022), please visit:
http://www.michigan.gov/mde/0,4615,7-140-6530_660521321--,00.html
ABC ACADEMY
9
BUDGETING
Overview
Budgeting: The Basics
Developing and maintaining an effective operating budget is a
critical function of the Academy Board. The Academy’s budget
should reflect a philosophy that supports the Academy’s
mission, vision and values and act as a financial plan; identifying
the spending priorities and resources needed to deliver a quality
educational program. As with traditional public school, charter
public schools follow specific laws surrounding the approval
and administration of its budget. These laws are designed to
offer transparency to the public.
The Uniform Budgeting and Accounting Act (UB&AA) requires
budgets to be adopted annually prior to July 1st, the start of
the fiscal year. Prior to adopting its budget, the Academy
Board must first hold a public hearing as mandated by the
Budget Hearings of Local Governments statute. The UB&AA
and the Academy’s Charter Contract Terms and Conditions
outline specific budget requirements. For example, the UB&AA
requires that the Board pass a General Appropriations Act,
which is done by resolution, when formally approving the
General Fund and Special Revenue Fund budget.
Another requirement of the UB&AA includes the Academy
Board’s designation, also by resolution, of a Chief Administrative
Officer (CAO). The CAO has the responsibility to present the
budget recommendations and detail to the Board. Additionally, the
CAO must monitor whether a balanced budget is being maintained
and expenditures are controlled. When the CAO notifies the
Board that the revenues are going to be less than estimated, or
expenditures are going to be greater than those used to formulate
the original budget, the Board must amend the budget.
A budget amendment should be approved by the Academy Board
prior to the expenditures exceeding the current appropriation.
Most charter public schools will amend the budget shortly after
the fall pupil count in order to align revenue estimates with the
actual enrollment. Furthermore, this provides the Board with an
opportunity to adjust its expenditures accordingly. There is no
authority to amend the budget after year end.
Both the UB&AA and the State School Aid Act prohibit a board from
passing a deficit budget; however, it is permissible for the Academy
to use unappropriated fund balance to cover a current year
operating deficit. At no time should the Academy’s fund balance
fall below $0. A deficit fund balance is considered “illegal” by the
UB&AA as well as the State School Aid Act; as such, this would
be considered a violation of the Charter Contract and warrant the
issuance of a Notice of Intent to Revoke by the Center.
Budget and Salary/Compensation Transparency Reporting
In July 2010, the State School Aid Act was amended (specifically, MCL 388.1618(2) and (3)) to include
salary/compensation transparency reporting requirements for Michigan Public Schools in addition to
the budget reporting requirements previously established. The legislation requires that the Academy’s
Budget and Salary/Compensation Transparency information be published on the Academy’s website
and available through a data link specifically titled “Budget and Salary/Compensation Transparency
Reporting” on the Academy’s Home Web Page.
A summary of the Budget and Salary/Compensation Transparency Reporting guidelines can be found at:
http://www.michigan.gov/documents/mde/Guidance_Section_18_463857_7.pdf.
10
Fiscal Performance Report 2013-2014
© 2015 The Governor John Engler Center for Charter Schools at Central Michigan University
BUDGETING
Budgeting in the Current School Environment
Budgeting Practices
Having sound budget practices is essential to fiscal success. It
is important to create a budget that is conservative, aligns with
the educational and operational needs of the Academy and is
flexible to adjust for unanticipated events. Examples of such
events may include:
• Lower than anticipated enrollment
• Reductions in funding
• Facility improvements
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• Create multiple budget scenarios at various enrollment and funding levels
• Set aside funds for capital improvements or enrollment fluctuations
• Create a multi-year capital budget – facility, technology and transportation
2014-15
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© 2014 Centra
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Center for Charte
For more information on the Budget Requirements Guide,
please visit:
http://www.TheCenterforCharters.org à Administrators
Budget Requirements
Annually, the Center publishes its Budgeting Requirements
guide to assist the Academy Board through the various legally
required steps that culminate in the approval of the Original
Budget. A key component of the budget process is the
formation of a budget timeline. While the Academy Board is
required to approve the General Appropriations Act prior to
July 1, preparing the budget can generally take several months.
A detailed timeline provides a clear set of expectations for both
the Academy’s board and administration. While not required,
the Center recommends that the Academy Board approve a
timeline annually at the beginning of the budget process. This
provides an opportunity to adjust the timeline based on either
positive or negative lessons learned from the previous year’s
process.
Footer
© 2015 The Governor John Engler Center for Charter Schools at Central Michigan University
Budget Timeline Example:
January
Budget requests are submitted internally
February
Requests are prioritized and cost estimates prepared
March
Budget is prepared and CAO presents to budget committee
April
Budget committee reviews, adjusts as necessary and presents to full board
May
Public budget hearing and budget approval
June
Budget approval (if not approved in May)
ABC ACADEMY 11
REVENUE
Overview
As previously stated, the majority of the Academy’s revenue
comes from the State in the form of state aid (see p. 8).
Unlike traditional public schools, charter public schools do not
have taxing authority to raise funds for capital or technology
investments, so facility, capital and technology projects must be
paid for by using state aid funds.
Consistent with traditional public schools, charter public
schools receive funding based upon a “blended student
count.” The 2013-2014 foundation allowance was calculated
based upon a blended student count consisting of 90% of
the Academy’s adjusted fall headcount (October 2013) and
10% of the Academy’s spring headcount (February 2014).
Given the significance of these pupil counts, it is critical that
the Academy’s budget assumptions are based upon realistic
enrollment estimates.
For more information on Michigan’s State School Aid Act,
please visit:
http://www.legislature.mi.gov/documents/mcl/pdf/mclact-94-of-1979.pdf
By law, the base foundation allowance received by a charter
public school may not exceed the per-pupil base foundation
allowance received by the local school district in which the
Academy resides, or $7,168 (for 2013-2014), whichever is lower.
The Academy’s blended student count, foundation allowance
and total state revenue history are detailed in the accompanied
timelines.
Section 25e of the State School Aid Act provides schools with
the ability to count a proration of a full-time equivalent (FTE) for
students who transfer from one school to another between
the fall and spring count days, provided that the student was
counted in a Michigan public school on the fall count date.
Your Academy’s Revenue
2007-2008
2008-2009
2009-2010
2010-2011
A.G.B.U. Alex and Marie Manoogian School
2010-2011
Amount
2011-2012
Percent of
Revenues
Amount
2012-2013
Percent of
Revenues
Amount
Percent of
Revenues
2013-2014
Percent of
Amount
Revenues
Revenues
Local
$43,004
1%
$48,168
2%
$54,078
2%
$72,988
2%
State
$2,897,359
92%
$2,947,028
93%
$2,912,844
92%
$2,998,398
93%
$216,445
7%
$172,202
5%
$187,112
6%
$146,149
5%
$0
0%
$0
0%
$0
0%
$0
0%
Federal
Other
Total Revenues
$3,156,808
$3,167,398
$3,154,034
$3,217,535
Fig. 11
Notes:
1) Sources: 2010-11, 2011-12, 2012-13, 2013-14 FID Submissions
2) Compiled by: The Center for Charter Schools Central Michigan University
12
Fiscal Performance Report 2013-2014
Created: 12/15/2011 11:18:03 AM
Updated: 1/26/2015 3:58:37 PM
© 2015 The Governor John Engler Center for Charter Schools at Central Michigan University
REVENUE
Timelines
A.G.B.U. Alex and Marie Manoogian School
Enrollment
Blended
Student Count
A.G.B.U. Alex and Marie Manoogian School
Enrollment
A.G.B.U. Alex and Marie Manoogian School
382.50
391.70
382.00
387.10
361.00
Enrollment
344.87
344.50
338.75
336.50
382.50
323.88
391.70
382.00
387.10
361.00
323.88
2004-2005
344.50
344.87
2005-2006
2006-2007
344.50
344.87
Per-Pupil Foundation Allowance
391.70
387.10
338.75
336.50
2007-2008
2008-2009
338.75
336.50
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2007-2008
2008-2009
$7,580
2009-2010
$7,580
2010-2011
$7,580
2011-2012
2012-2013
2013-2014
$7,110
$7,110
$7,168
$7,110
$7,110
$7,168
2011-2012
2012-2013
2013-2014
$7,110
$7,110
$7,168
2011-2012
2012-2013
2013-2014
382.50
2009-2010
361.00
2010-2011
2011-2012
382.00
2012-2013
2013-2014
Fig. 12
323.88
2004-2005
2005-2006
2006-2007
Per-Pupil Foundation Allowance
Per-pupil
Foundation
2004-2005
2005-2006Allowance
2006-2007
$7,385
$7,475
Per-Pupil Foundation
Allowance
$7,175
$7,000
$7,385
$7,475
$7,580
$7,580
$7,580
$7,580
$7,580
$7,580
2008-2009
2009-2010
2010-2011
$7,175
$7,000
2004-2005
2005-2006
$7,175
$7,385
2006-2007
$7,475
2007-2008
$7,000
Total
Statewide Revenue
(in millions)
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
Fig. 13
2004-2005
2005-2006
2006-2007
Total
Statewide Revenue
(in millions)
2007-2008
2008-2009
2009-2010
Total
Revenue
(inmillions)
millions)
Total State
Statewide
Revenue (in
2010-2011
2011-2012
2012-2013
2013-2014
$2.9
$2.9
$2.9
$3.0
$2.9
$2.9
$2.9
$3.0
2010-2011
2011-2012
2012-2013
2013-2014
$2.9
$2.9
$2.9
$3.0
$2.3
$2.5
$2.6
$2.6
$2.6
$2.6
$2.3
$2.5
$2.6
$2.6
$2.6
$2.6
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
$2.3
$2.5
$2.6
$2.6
$2.6
$2.6
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Notes:
1) Sources:
2) Compiled by: The Center for Charter School Central Michigan University
2004-2005
2005-2006
2006-2007
2007-2008
Fig. 14
Notes:
Created: 2/1/2012 4:39:29 PM
1)
Sources:
Updated:
1/26/2015 3:45:28 PM
2) Compiled by: The Center for Charter School Central Michigan University
Footer
Notes:
2/1/2012
4:39:29
©Created:
2015 The
Governor
JohnPM
Engler Center for Charter Schools at Central Michigan University
1) Sources:
Updated: 1/26/2015 3:45:28 PM
2) Compiled by: The Center for Charter School Central Michigan University
Page 1 of 1
ABC ACADEMY 13
Printed: 2/2/2015 3:19 PM
EXPENDITURES
Overview
Expenditures: The Basics
High performing academies generally adopt sound fiscal practices
designed to maximize student achievement and support their
mission and vision. Through effective allocation of resources and
control of expenditures, the Academy is better able to recruit
and retain highly effective teachers, provide a quality learning
environment, meet the needs of struggling, at-risk or gifted
students and ensure that the educational program, as defined in
the Charter Contract, is fully implemented.
As fiscal stewards, the Academy Board is charged with ensuring
that management efficiently controls costs while effectively
delivering the quality educational program defined within the
Charter Contract. Prudent spending and cost control should result
in the Academy reporting a surplus of revenues over expenditures,
which accumulates as its fund balance. Below are the Academy’s
expenditures, which show the Academy’s spending over the past
four years.
The majority of the Academy’s expenditures fall under two main
categories: Instruction and Supporting Services. Instructional
expenditures are related to activities dealing directly with teaching
and learning. Supporting Services account for the non-instructional
spending that supports the instructional program. A major
component of Supporting Services are occupancy expenditures,
which are associated with building operations and maintenance
in addition to debt service obligations. The charts on the facing
page reflect the Academy’s spending related to these expenditure
categories for the fiscal year ending June 30, 2014.
Your Academy’s Expenditures
A.G.B.U. Alex and Marie Manoogian School
2010-2011
Amount
Total Revenues
2011-2012
Percent of
Expenditures
$3,156,808
Amount
2013-2014
2012-2013
Percent of
Expenditures
$3,167,398
Amount
Percent of
Expenditures
Amount
Percent of
Expenditures
$3,217,535
$3,154,034
Expenditures
$1,685,294
Basic
$1,569,801
$1,553,352
$1,591,434
$1,609,515
$115,493
$86,887
$84,487
$94,786
Added Needs
Supporting Services
$1,281,806
57%
43%
$1,640,239
$1,471,476
53%
47%
$1,675,921
$1,704,301
Instruction
$1,493,611
53%
$1,476,236
47%
Pupil
$81,911
$167,653
$167,435
$167,936
Instructional Staff
$63,421
$115,882
$105,242
$104,269
General Administration
$99,560
$99,829
$96,631
$97,506
School Administration
$438,592
$414,087
$407,351
$391,114
Business
Operations and Maint.
Transportation
Central
Other
Community Services
Outgoing Transfers and
Other Transactions
Total Expenditures
$53,870
$79,637
$58,813
$63,469
$401,717
$422,480
$451,237
$466,422
$0
$0
$0
$0
$139,736
$167,888
$203,345
$181,330
$2,999
$4,020
$3,557
$4,190
54%
46%
$0
0%
$0
0%
$0
0%
$0
0%
$3,065
<1%
$0
0%
$0
0%
$0
0%
$2,970,165
$3,111,715
$3,180,537
$3,169,532
Revenues over Expenditures
$186,643
6%
$55,683
2%
($15,498)
<0%
$36,998
1%
Ending Fund Balance
$584,048
20%
$639,731
21%
$624,234
20%
$661,232
21%
Fig. 15
Notes:
$
661,232 $
-
1) Sources: 2010-11, 2011-12, 2012-13, 2013-14 FID Submissions
2) Compiled by: The Center for Charter Schools Central Michigan University
14
Fiscal Performance Report 2013-2014
Created: 12/15/2011 3:46:24 PM
Updated: 1/26/2015 3:58:37 PM
© 2015 The Governor John Engler Center for Charter Schools at Central Michigan University
EXPENDITURES
Expenditures Breakdown
INSTRUCTIONAL
EXPENDITURES
SUPPORTING SERVICES
EXPENDITURES
OCCUPANCY
EXPENDITURES
These include teachers, teacher
assistants, textbooks, classroom
supplies and resources dealing directly
with the instructional program. These
are direct classroom expenditures.
These include the cost of services
that provide administrative, technical
and logistical support to facilitate and
enhance instruction. This classification
of expenditures includes non-classroom
expenditures.
These are a combination of
expenditures related to keeping the
physical plant open, clean and ready
for daily use, which include lease
payments, debt service, maintenance,
improvements and other miscellaneous
expenses related to the facility.
A.G.B.U.
Alex and
Marie
Manoogian
School
A.G.B.U.
Alex
andand
Marie
Manoogian
School
A.G.B.U.
Alex
Marie
Manoogian
School
Total Instructional
Expenditures
HIGHEST HIGHEST
HIGHEST
66%
Total Supporting
Services
Expenditures
HIGHEST HIGHEST
HIGHEST
CMU
CMUCMU
2013-2014
PERCENT
PERCENT
PERCENT
CMU
66%
66%
66%
66%
CMU
CMUCMU
2013-2014
PERCENT PERCENT
PERCENT
CMU
CMU
2013-2014
A.G.B.U.
Alex
A.G.B.U.
and
Marie
Alex Manoogian
and Marie Manoogian
School
School
A.G.B.U. Alex and
Marie
Manoogian
School
PERCENT
PERCENT
PERCENT
69%
66%
66%
HIGHEST
CMU
PERCENT
HIGHEST
CMU
PERCENT
Occupancy
Expenditures
HIGHEST HIGHEST
HIGHEST
HIGHEST
CMU
PERCENT
66%
HIGHEST
CMU
PERCENT
66%
35%
69%
69%
35%
35%
Alex
A.G.B.U.
andHIGHEST
Marie
Alex Manoogian
andHIGHEST
Marie Manoogian
School HIGHESTSchool
A.G.B.U.
Alex andA.G.B.U.
Marie Manoogian
School
HIGHEST
HIGHEST
CMU
PERCENT
HIGHEST
CMU
PERCENT
CMU
PERCENT
HIGHEST
CMU
PERCENT
69%
69%
69%
69%
CMU
PERCENT
69%
HIGHEST
CMU
PERCENT
69%
CMU
PERCENT
HIGHEST
CMU
PERCENT
35%
CMU
PERCENT
HIGHEST
CMU
PERCENT
35%
35%
HIGHEST
CMU
PERCENT
35%
HIGHEST
CMU
PERCENT
35%
HIGHEST
CMU
PERCENT
HIGHEST
CMU
PERCENT
35%
ACADEMY'S
ACADEMY'S
ACADEMY'S
INSTRUCTIONAL
INSTRUCTIONAL
INSTRUCTIONAL
ACADEMY'S ACADEMY'S
SPENDING
ACADEMY'S
SPENDING
SPENDING
INSTRUCTIONAL
INSTRUCTIONAL
INSTRUCTIONAL
54%
54%
54% ACADEMY'S
SPENDING ACADEMY'S
SPENDING
SPENDING
ACADEMY'S
INSTRUCTIONAL
54%
SPENDING
54%
ACADEMY'S
ACADEMY'S
ACADEMY'S
INSTRUCTIONAL
INSTRUCTIONAL
54%
54%
SPENDING SPENDING
54%
SUPPORTING
SUPPORTING
SUPPORTING
ACADEMY'S
ACADEMY'S
ACADEMY'S
SERVICES
SERVICES
SUPPORTING
SUPPORTING
SERVICES SUPPORTING
SERVICES
SERVICES
SERVICESSPENDING
SPENDING
ACADEMY'S
ACADEMY'S
SPENDING ACADEMY'S
SPENDING
SPENDING
SPENDING
SUPPORTING SUPPORTING
SUPPORTING
SERVICES
SERVICES
SERVICES
46%
46%
46%
SPENDING SPENDING
SPENDING
54%
ACADEMY'S
OCCUPANCY
SPENDING
ACADEMY'S
OCCUPANCY
15%
SPENDING
46%46%
46%
46%
46%
31%
31%
31%
31%
LOWEST
CMULOWEST
LOWEST
PERCENTCMU 31%
CMU
CMU
LOWEST
PERCENT PERCENT
PERCENT
31%
31%
LOWEST
CMU
PERCENT
31%
LOWEST
CMU
31%
PERCENT
LOWEST
CMU
PERCENT
29%
LOWEST
CMU
PERCENT
LOWEST
CMU
PERCENT
29%
29%
29%
29%
29%
LOWEST
LOWEST29%
CMU
LOWEST LOWEST
CMU
LOWEST
29% CMUPERCENT
29%
PERCENT
CMU
CMU
LOWEST
LOWEST PERCENT PERCENT
PERCENT
CMU
CMU
PERCENT
PERCENT
46%
3%
LOWEST
CMU
PERCENT
LOWEST
CMU
PERCENT
15%
3%
LOWEST
CMU
PERCENT
LOWEST
CMU
PERCENT
3%
3%
15%15%
15%
15%
15%
3%
3%3%LOWEST
LOWEST
CMU
PERCENT
CMU
PERCENT
CMU LOWEST
LOWEST
LOWESTCMU
3% CMU
PERCENT
CMU
CMUPERCENT
LOWEST
LOWEST
PERCENT PERCENT
PERCENT
$1,704,301
$1,704,301
$1,476,236
$1,476,236
$466,422
$466,422
$1,704,301
$1,704,301
$1,704,301
$1,704,301
$1,704,301
$1,704,301
$1,476,236
$1,476,236
$1,476,236 $1,476,236
$1,476,236
$1,476,236
$466,422
$466,422
$466,422
$466,422
$466,422
$466,422
$1,704,301
$1,476,236
3%
ACADEMY'S
ACADEMY'S
ACADEMY'S
ACADEMY'S
ACADEMY'S
OCCUPANCY
OCCUPANCY
OCCUPANCY
OCCUPANCY
OCCUPANCY
SPENDING
SPENDING
SPENDING
SPENDING
SPENDING
ACADEMY'S ACADEMY'S
OCCUPANCY
OCCUPANCY
15%
15%
SPENDING SPENDING
$466,422
$72,000
$72,000 Lease/Loans/Bonds
(15.4%)
(15.4%)
$272,205
Pupil/Instructional
(18.4%) $72,000
Support Lease/Loans/Bonds
(18.4%)
(15.4%)Lease/Loans/Bonds
$1,637,614
Instructional
Salaries,
Instructional
Benefits &Salaries,
Services
Benefits
(96.1%)Pupil/Instructional
& Services (96.1%)
$272,205
Support Pupil/Instructional
(18.4%)$272,205 Support
$1,637,614 Instructional Salaries,
Benefits
& $1,637,614
Services
(96.1%)
$100,492
Janitorial$100,492
& SecurityJanitorial
(21.5%) & Security (21.5%)
$100,492
(21.5%)
$97,506
General Administration
$97,506 General
(6.6%)
Administration
(6.6%)Janitorial & Security
$27,678Media
Textbooks
$27,678
& Educational
Textbooks
Media
& Educational
(1.6%) $97,506
Media (1.6%)
General Administration
(6.6%)
$27,678 Textbooks & Educational
(1.6%)
$72,000
Lease/Loans/Bonds
Lease/Loans/Bonds
(15.4%)
(15.4%)
$272,205
Pupil/Instructional
$272,205 Support
Pupil/Instructional
(18.4%) $72,000
SupportLease/Loans/Bonds
(18.4%)
(15.4%)
$1,637,614
Instructional
$1,637,614
Salaries,
Instructional
Benefits &Salaries,
Services
Benefits
(96.1%)
& Services (96.1%)
$272,205
Pupil/Instructional
Support (18.4%)
$1,637,614 Instructional Salaries,
Benefits
& Services
(96.1%)
$116,282
Repairs $72,000
$116,282
& Maintenance
Repairs
(25.0%)
& Maintenance
(25.0%)
$116,282
Repairs & Maintenance
(25.0%)
Equipment & Furniture
$0 Equipment
(0.0%) & Furniture (0.0%)
$391,114
School Administration
$391,114 School
(26.5%)
Administration
(26.5%)
$0 Equipment & Furniture $0
(0.0%)
$391,114 School Administration
(26.5%)
Lease/Loans/Bonds
(15.4%)
$272,205
Pupil/Instructional
Support
(18.4%)
$1,637,614
Instructional
Salaries,
Benefits
&$27,678
Services
(96.1%)
$72,000
Lease/Loans/Bonds
Pupil/Instructional
Support
(18.4%)
$1,637,614
Instructional
Salaries,
Benefits
&Textbooks
Services
$100,492
Janitorial
&Lease/Loans/Bonds
SecurityJanitorial
(21.5%)
&(15.4%)
Security
(21.5%)
$100,492
&$72,000
Security
(21.5%)
$72,000
(15.4%)
$272,205
Pupil/Instructional
Support
(18.4%)
$1,637,614
Salaries,
& Services
(96.1%)
$97,506
General
Administration
$97,506
General
(6.6%)
Administration
(6.6%)Janitorial
$27,678
Textbooks
&Benefits
Educational
Media
&(96.1%)
Educational
(1.6%)
Media
(1.6%) $272,205
$97,506
General
Administration
(6.6%)
$27,678
Textbooks
& Instructional
Educational
Media
(1.6%)
$138,354
Utilities $100,492
$138,354
(29.7%)
Utilities
(29.7%)
$138,354
Utilities (29.7%)
$39,009
Other
(including
$39,009
Supplies
Other
(including
&
Materials)
Supplies
(2.3%)
&
Materials)
(2.3%)
$466,422 Operations
& Maintenance
Operations
(31.6%)
& Maintenance (31.6%)
$39,009 Other (including Supplies & Materials) (2.3%)
$466,422 Operations & Maintenance
(31.6%)$466,422
$116,282
Repairs
$116,282
&&
Repairs
&(6.6%)
(25.0%)
$116,282
Repairs &&Maintenance
(25.0%)
$100,492
Janitorial
Security
(21.5%)
$100,492
& Security
(21.5%)
$0Educational
Equipment
&Media
Furniture
$0Media
Equipment
(0.0%)
& Furniture (0.0%)
$391,114
School
Administration
$391,114
(26.5%)
Administration
(26.5%)
$0$27,678
Equipment
&&Furniture
$97,506
General
Administration
(6.6%) School
$391,114
School$97,506
Administration
(26.5%)
$27,678
Textbooks
Educational
(1.6%)
Insurance
$30,680
&Maintenance
Bond
Premiums
Insurance
&Maintenance
Bond
Premiums
(6.6%)
$100,492
Janitorial
&(25.0%)
Security
(21.5%)
$30,680
Insurance
Bond$30,680
Premiums
(6.6%)Janitorial
General
Administration
(6.6%)
Textbooks
&(0.0%)
(1.6%)
$97,506
General
Administration
$27,678
Textbooks
& Media
Educational
(1.6%)
$248,989 Other(6.6%)
(16.9%)
$248,989 Other (16.9%) $248,989 Other (16.9%)
$138,354
Utilities
$138,354
(29.7%)
Utilities
(29.7%)
$138,354
Utilities
(29.7%)
$0(0.0%)
Capital
Projects
$0
&Maintenance
Outlay
Capital
(0.0%)
Projects
& Outlay(25.0%)
(0.0%)
$0
Capital
Projects
&
Outlay
$39,009
Other
(including
$39,009
Supplies
Other
(including
&
Materials)
Supplies
(2.3%)
&
Materials)
(2.3%)
$466,422
Operations
$466,422
&
Maintenance
Operations
(31.6%)
&
Maintenance
(31.6%)
$39,009
Other
(including
Supplies
&
Materials)
(2.3%)
$116,282
Repairs
&
(25.0%)
$466,422
Operations
&
Maintenance
(31.6%)
$116,282
Repairs
&
Maintenance
$116,282
Repairs
&
Maintenance
(25.0%)
$0 Equipment
&Equipment
Furniture
(0.0%)
$391,114$391,114
School
Administration
(26.5%) (26.5%)
$0 $0
Equipment
& Furniture
(0.0%)
School
Administration
& Furniture
(0.0%)
$391,114
School
Administration
(26.5%)
$30,680
Insurance
$30,680
& BondOther
Premiums
Insurance
& Bond Premiums (6.6%)
$30,680 Insurance & Bond $8,614
Premiums
(6.6%)
Other
(1.8%)
$8,614
(1.8%)(6.6%)
$248,989 Other (16.9%) $8,614 Other (1.8%) $138,354
$248,989 Other (16.9%) $248,989 Other (16.9%)
Utilities
(29.7%)
$138,354
Utilities
(29.7%)
$138,354
Utilities
(29.7%)
$39,009$39,009
Other
(including
Supplies
& Materials)
$466,422$466,422
Operations
&Operations
Maintenance
(31.6%) (31.6%)
Other
(including
Supplies
& Materials)
(2.3%)
Operations
& Maintenance
$39,009
Other
(including
Supplies
&(2.3%)
Materials)
(2.3%)
$466,422
& Maintenance
(31.6%)
Capital Projects$0
& Outlay
Capital(0.0%)
Projects & Outlay (0.0%)
$0 Capital Projects & Outlay$0(0.0%)
Created:
5:05:271/21/2011
PM
5:05:27 PM
Created: 1/21/2011 5:05:27
PM 1/21/2011Created:
$30,680
Insurance
& Insurance
BondOther
Premiums
(6.6%)
$30,680
Insurance
& Bond
Premiums
(6.6%)
$30,680
& Bond
Premiums
(6.6%)
$8,614
Other
(1.8%)
$8,614
(1.8%)
$8,614 Other (1.8%)
$248,989$248,989
Other
(16.9%)
Other
(16.9%)
$248,989
Other
(16.9%)
Updated:
Updated:
3:16:46
1/27/2015
PM
3:16:46 PM
Updated: 1/27/2015 3:16:46
PM1/27/2015
$0 Capital
& Outlay
$0 Projects
Capital
Projects
&(0.0%)
Outlay
(0.0%)
$0
Capital
Projects
& Outlay
(0.0%)
1/21/2011Created:
5:05:271/21/2011
PM
5:05:27 PM
Created: 1/21/2011 5:05:27Created:
PM
Fig.
Updated:
Updated:
3:16:46
1/27/2015
PM 16 3:16:46 PM
Updated: 1/27/2015 3:16:46
PM1/27/2015
Created: Created:
1/21/2011
5:05:27
PM
1/21/2011
5:05:27
PM PM
Created:
1/21/2011
5:05:27
Fig. 17
$8,614 $8,614
Other
(1.8%)
Other
(1.8%)
$8,614
Other
(1.8%)
Printed:
1
Printed: 1/28/2015
2:26 PM
Fig. 18
1
Printed: 1/28/2015Printed:
2:26 PM
The
CenterUpdated:
acknowledges
that there
are
differing
models of management approaches utilized by academies and accounts for these differences through various reporting mechanisms. These mechanisms include all aspects
Updated:
1/27/2015
3:16:46
PM
1/27/2015
3:16:46
PMPM
Updated:
1/27/2015
3:16:46
of the Academy’s financial reporting from budgets (original and amended) to the audited financial statements and associated management letter. To help put this information into perspective, this report includes comparison
information, such as the industry standard and averages. These comparators should, however, be taken into context with other factors at the Academy as they may not accurately reflect long-term planning and other unknown
influences that are unique and specific to the Academy.
Footer
© 2015 The Governor John Engler Center for Charter Schools at Central Michigan University
ABC ACADEMY 15
Pr
BORROWING
HISTORY
Short-term & Long-term Borrowings
Financings: The Basics
Short-term & Long-term Borrowings
The financial market and access to facility financing have
greatly evolved since the inception of charter public schools.
Lenders credit much of this access and availability to the
stability and success of charter public schools, as well as
the strong oversight by authorizers, like CMU. Since charter
public schools do not have the same general authority
to borrow money like private corporations, nor do they
have taxing authority like traditional public schools, prior to
entering into a financial obligation, the Academy must first
receive approval from the state – specifically the Department
of Treasury (Treasury). This process is known as obtaining
“qualified status.”
Since state aid payments are only distributed eleven (11) times,
on or after the 20th of each month (October through August
with no payment issued during the month of September), the
Academy may need to utilize a State Aid Anticipation Note
(SAAN), also known as a cash flow borrowing or “bridge
loan” as a way to bridge the gap in state aid payments. The
Academy has the authority to incur temporary debt for cash
flow purposes (MCL 380.504a(e)). It also has authority to enter
into a line of credit for cash flow borrowings; however, that
requires specific approval from the Treasury (MCL 380.1225)
in addition to the qualified status previously discussed. These
SAAN’s cannot exceed 372 days or 70% of the Academy’s
total state aid (MCL 380.1225).
The easiest way to accomplish this is by submitting the
Academy’s annual financial audit and completing the required
submission by December 31st each year. In the event the
Academy fails to obtain “qualified status,” it may still be able
to enter into a financing; however, it will require approval
from Treasury prior to each borrowing. This process is timeconsuming and also has substantially higher costs associated
with it. It is important to remember that when seeking “qualified
status,” Treasury is not assessing the Academy’s credit
quality; it only considers compliance with the requirements of
the Revised Municipal Finance Act (PA 34 of 2001).
The Academy also has authority to acquire real and personal
property (MCL 380.504a(b)). As such, it also has authority to
borrow money and issue bonds (MCL 380.504a(g)). Common
structures for long-term, facility financings include:
• Bank Loan
• Bond Issuance
• Community Development Financing
• Land Contract
See p. 21 for glossary
Your Academy’s Borrowing History
Below is a table that represents your Academy’s financings over the past three years. The percentage rates for each borrowing are also
included for the Academy’s short-term borrowings (less than 372 days) as of June 30, 2014, per the Academy’s short-term borrowing
documents as received by the Center. Total outstanding long-term debt represents the Academy’s total long-term (more than 1 year)
Woodland Park Academy
outstanding debt as of June 30, 2014, per the Academy’s audited financial statements.
Academy Short-term Borrowing
Borrowed
Amount #1
Percentage
Rate #1
CMU Average Short-term Borrowing
Borrowed
Amount #2
Percentage
Rate #2
Borrowed
Amount
Percentage
Rate
Total Outstanding
Long-term Debt
20
2011-2012
$600,000
2.90%
--
--
$877,018
3.39%
$3,934,815
20
2012-2013
$512,000
2.95%
--
--
$922,556
3.68%
$3,684,364
20
2013-2014
$420,000
2.80%
--
--
$896,133
3.29%
$3,628,825
- - No Data Available.
NOTE: Variable rates have been excluded from the CMU average.
Fig. 19
Notes:
1) Variable rates have been excluded from the CMU average rate
2) "CMU Average Short-term Borrowing" is the average of schools with S-T Borrowing, not the overall average
16
Fiscal Performance Report 2013-2014
Created: 1/21/2011 5:05:27 PM
© 2015 The Governor John Engler Center for Charter Schools at Central Michigan University
ANNUAL FINANCIAL AUDIT
Overview
Annual Financial Audit: The Basics
The State School Aid Act requires the Academy to engage an
independent certified public accountant to conduct an annual
financial audit of the Academy. This process is initiated when
the Board approves the auditor’s engagement letter outlining
the services that will be provided, which should include the cost
of the audit.
The Center recommends that the Academy Board stipulate
the date upon which they require the auditor to present the
audited financial statements to the Academy Board. Failure to
comply with the State’s November 15th deadline will result in
withholding of the Academy’s monthly state aid payments until
such time as the audited financial statements are on file with
the Michigan Department of Education, Office of Audits.
findings and recommendations can be found in various places
throughout the audited financial statements and related letters
so it is imperative that the Academy Board responds to all items.
The Center’s review of the findings and recommendations
includes an analysis of whether it is a repeat item from the prior
year and whether or not the previous Board-approved response
indicated an expectation that the issue would be resolved in
a timely manner. If a policy was developed or implemented
and the Academy’s administration did not adhere to the Board’s
directive, then the repeat finding may indicate to the Board that
it has issues or concerns that extend beyond simply what was
identified in the audit finding.
In addition to the engagement letter and the audited financial
statements, the Master Calendar of Reporting Requirements
requires academies to submit all letters issued by the
Academy’s auditor, as well as all Board-approved responses to
any findings and recommendations that were identified. These
A list of all independent accounting firms that have
experience auditing school districts, including
charter public schools, can be found on the Michigan
Department of Education’s website:
http://www.michigan.gov/documents/mde/
AuditorList2012_419152_7.pdf
ABC Academy
Findings/Recommendations
and Board-approved
Response
Findings/Recommendations and Board-approved
Response
Repeat Item
Repeat
Item
N
2014-1: Significant Deficiency and Noncompliance (Cash Management/Allowable Costs)
Program Name – Title I (CFDA 84.010)
The Academy’s internal control system related to cash management and allowable costs did not function properly for the cash
management request and for the charge to the grant. Because of the internal control failure, the Academy did in fact have cash
reimbursements in excess of actual expenditures for the year.
The Academy should have a system of posting the payroll related costs based on actual costs and not on budgeted
costs and this should be reviewed by responsible Academy officials.
Response
The Academy will design an accounting system which provides for the posting of payroll related costs based
on actual costs. The business manager and the finance committee will review the amounts to be posted to the grants to
ensure they are based on actual costs. The Academy will review its 2014-2015 records to ensure this situation has not
occurred in the current fiscal year and correct its current system by November 30, 2014.
2014-2: Significant Deficiency
The Academy lacks an appropriate segregation of certain incompatible duties with appropriate control objectives. The effect of this
condition subjects the Academy to increased risk of misstatements within the financial statements and misappropriation of assets.
Response
Due to budget constraints and the small size of the Academy, the Board reaffirms and makes no adjustments to their
previous action plan of close monitoring by board and administrative members. The Board of ABC Academy therefore
reaffirms that their planned actions for the June 30, 2014 audit report will be the same planned actions that were taken for
these same findings that were noted in the June 30, 2013 audit report.
NOTE: Any information presented in Fig. 20 is directly reported as received from, and approved by, the Academy Board.
Footer
© 2015 The Governor John Engler Center for Charter Schools at Central Michigan University
Y
Fig. 20
ABC ACADEMY 17
FISCAL
PERFORMANCE
Overview
Fiscal Performance
An essential function of the Academy Board is to use financial reporting as a tool to ensure that the approved budget remains on track
throughout the course of the fiscal year. The Academy’s administration presents interim financial statements to the Board monthly,
while the Center receives them on a quarterly basis. Comparing the Academy’s year ending June 30 interim financial statements to
the audited financial statements provides an opportunity to measure the accuracy of the Academy’s financial reporting. Additionally,
when the year is over, it is equally important to review how well the Academy remained aligned with the final budget and ensure that
variances are explained and understood since they can have a long-term impact on the Academy’s fiscal sustainability.
Final Budget vs. the Audited Financial Statements
The chart below compares the Academy’s final approved budget and its audited financial statements for the year ending June 30, 2014. The Board
A.G.B.U.
Alex
and as
Marie
Manoogian
School
should inquire about large variances, both
positive and
negative,
they could
have an impact
on subsequent budgets.
Annual Budget
2013-2014
Positive (Negative)
Variance
Final Budget
Audited Financial Statements 1
Total Revenues
$3,104,200
$3,217,535
Annual Budget
Total Expenditures
$3,104,200
Final Budget
$3,180,537
Audited Financial Statements 1
Revenues over
Total
Revenues
Expenditures
$0
$3,104,200
$36,998
$3,217,535
$36,998
$113,335
4%
Ending Fund Balance
Total Expenditures
$624,234
$3,104,200
$661,232
$3,180,537
$36,998
($76,337)
-2%
A.G.B.U. Alex and Marie Manoogian School
$113,335
Percent
4%
2013-2014
Revenues over
Expenditures
$0
Interim Financial Statements
$36,998
2013-2014
($76,337)
Positive
(Negative)
Variance
-2%
Percent
Fig. 21
$36,998
Interim Financial Statements vs. the Audited Financial Statements
Positive (Negative)
2
1
Ending
Fund
Balance
$624,234
$661,232
$36,998
Auditedand
Financial
Statements
Financial
Statements
Variance
Percent
The
chart
below
compares Interim
the Academy’s
interim
financial statements
its audited
financial statements
for the year ending June
30, 2014.
Large variances could indicate that substantial audit adjustments were required. In this case, the Academy Board should inquire and review the
$3,220,797
$3,217,535
($3,262)
0%
Total Revenues
Interim Financial Statements
information.
2013-2014
Total Expenditures
$3,185,448
Interim Financial Statements 2
$3,180,537
Audited Financial Statements 1
Revenues over
Total
Revenues
Expenditures
$35,349
$3,220,797
$36,998
$3,217,535
$1,649
($3,262)
0%
Ending Fund Balance
Total Expenditures
$659,583
$3,185,448
$661,232
$3,180,537
$1,649
$4,911
0%
$35,349
$36,998
$1,649
$659,583
$661,232
$1,649
Revenues over
Expenditures
Positive $4,911
(Negative)
Variance
0%
Percent
Created: X/X/2012 00:00:00 PM
Updated: 1/27/2015 3:54:22 PM
Ending Fund Balance
Fig. 22
1 For the purpose of the charts on this page, Audited Financial Statements data was sourced from the FID.
2 For the purpose of the chart on this page, Interim Financial Statements data was sourced from the year ending 4th Quarter Financial Statements as submitted by the Academy to the Center.
Printed:
Created: X/X/2012 00:00:00 PM
1/27/2015
3:54:22 PM
18Updated:
Fiscal
Performance
Report 2013-2014
© 2015 The Governor John Engler Center for Charter Schools at Central Michigan University
FISCAL PERFORMANCE
Fund Balance & Liquidity
A.G.B.U. Alex a
A.G.B.U. Alex
Fund Balance
Fund balance, which does not necessarily represent
cash-on-hand, is created or increased when
revenues exceed expenditures in a fiscal year. The
difference between the Academy’s assets (what
it owns) and liabilities (what it owes) equals its
fund balance. A positive fund balance represents
the financial resources available to finance future
expenditures.
Traditional
industry
standards
suggest that schools maintain a fund balance
between 5-15% of general operating expenditures.
The Academy Board should determine what
fund balance amount is appropriate based on
the needs and long-term vision of the Academy.
NOTE: The industry standard is the range used by schools as a benchmark, and should
be taken into consideration with other factors at the Academy as they may not accurately
reflect long-term planning, such as property acquisitions, and other unknown influences at
the time this report was generated.
FundBalance
Balance
Fund
TOTALFUND
FUNDBALANCE
BALANCE
ASAAPERCENT
PERCENT
OF TOTAL
TOTAL EXPENDITURES
TOTAL
AS
OF
EXPENDITURES
Fund
Balance
TOTAL FUND BALANCE AS A PERCENT OF TOTAL EXPENDITURES
100%
100%
90%
90%
80%
80%
70%
70%
60%
60%
50%
50%
40%
40%
30%
30%
20%
20%
10%
10%
0%
0%
21%
21%
20%
20%
21%
21%
FYE 2012
FYE 2012
FYE 2013
FYE 2013
FYE 2014
FYE 2014
Fund Balance
Fund Balance
Fig. 23
Liquidity
A.G.B.U.
Alex
andand
Marie
Manoogian
School
A.G.B.U.
Alex
Marie
Manoogian
School
Created:
1/21/2011
5:05:27 PM
Liquidity measures the Academy’s ability to use cash,
and convert other short-term assets into cash, in
order
to meet
immediate and short-term obligations
Fund
Balance
Fund
Balance
OTAL
FUNDFUND
BALANCE
AS Aas
PERCENT
OF TOTAL
EXPENDITURES
(known
liabilities).
Typical current assets
TOTAL
BALANCE
AS
Acurrent
PERCENT
OF
TOTAL
EXPENDITURES
include: cash, cash equivalents, accounts receivable
and short-term investments. The current ratio is
commonly used to measure liquidity, which is a good
indicator of the Academy’s ability to pay its shortterm liabilities with its short-term assets. The higher
the current ratio, the more capable the Academy is
of paying its obligations. A ratio under 1.0 suggests
that the Academy would be unable to pay off all of
its current obligations
due at that point.
21%
21%
20%
21%
21%
20% if they came
Another statement used by boards to monitor its
liquidity is a cash flow statement. Boards should
receive and review this information on a monthly
FYEFYE
2012
FYEFYE
2013
FYEFYE
2014
2012
2014
basis along with
its2013
other standard
financial
reports.
Created: 1/21/2011 5:05:27 PM
Updated: 1/27/2015 3:23:28 PM
Updated: 1/27/2015 3:23:28 PM
Fund
Balance
Fund
Balance
Liquidity
Liquidity
CURRENT
RATIO
Liquidity
CURRENT
RATIO
CURRENT
RATIO
10 10
9
9
8
8
7
7
6
6
5
5
4
4
3
3
2
2
1
1
0
0
3.63.6
FYEFYE
2012
2012
3.33.3
FYEFYE
2013
2013
3.83.8
FYEFYE
2014
2014
Current
Ratio
Current
Ratio
Fig. 24
Footer
© 2015 The Governor John Engler Center for Charter Schools at Central Michigan University
11 5:05:27
PM PM
1/2011
5:05:27
ABC ACADEMY 19
NOTES
NOTES
20
20
Fiscal Performance Report 2013-2014
Fiscal Performance Report 2011-2012
© 2015 The Governor John Engler Center for Charter Schools at Central Michigan University
© 2013 Central Michigan University The Governor John Engler Center for Charter Schools
END NOTES
Resources, Acronyms & Glossary
RESOURCES
Budget and Salary/Compensation Transparency Reporting: http://www.michigan.gov/mde/0,1607,7-140-6530_6605-159882--,00.html
Center for Educational Performance and Information (CEPI): www.michigan.gov/cepi
CEPI FID information: www.michigan.gov/cepi/0,1607,7-113-986_10484---,00.html
Financial Status Reports: http://mdoe.state.mi.us/samsstatusreports/statusreports.aspx
Michigan Department of Treasury: www.michigan.gov/treasury
Michigan Public School Accounting Manual: http://michigan.gov/mde/0,4615,7-140-6530_6605-21321--,00.html
Michigan Pupil Accounting and Attendance Association: www.mpaaa.org
Michigan School Business Officials: www.msbo.org/
Michigan State School Aid Act: www.legislature.mi.gov/documents/mcl/pdf/mcl-act-94-of-1979.pdf
Monthly State School Aid Update: www.michigan.gov/mde/0,4615,7-140-6530_6605-21108--,00.html
Revised School Code: www.legislature.mi.gov/(S(31qrkl55wovjbx4511l0rl45))/documents/mcl/pdf/mcl-chap380.pdf
The Governor John Engler Center for Charter Schools: www.TheCenterForCharters.org
Uniform Budgeting and Accounting Act: www.legislature.mi.gov/documents/mcl/pdf/mcl-act-2-of-1968.pdf
ACRONYMS & GLOSSARY
Bank Loan – A loan made by a bank that is secured by real property.
Blended Student Count – Public schools receive funding based upon a “blended student count.” The 2013-2014 foundation allowance was
calculated based upon a blended student count consisting of 90% of the Academy’s adjusted fall headcount (October 2013) and 10% of the
Academy’s spring headcount (February 2014).
Bond Issuance – A debt security under which the issuer owes the bond holders principal and interest payments at fixed intervals of time.
Community Development Financing – A financing that promotes economic revitalization and community development through investment by a
community development financial institution.
Community Services Expenditures – Community activities that are not directly related to providing education for pupils in a school system.
Current Ratio – This is a liquidity ratio that measures the Academy’s ability to pay short-term debt obligations. Current Ratio = Current Assets/
Current Liabilities.
Federal Sources Revenues – Funding from the federal government, generally in the form of restricted grants including Title I, Part A.
Financial Information Database (FID) – For purposes of this report, all source references to the Academy’s FID are related to the FID data files for
the General Fund only.
Footer
© 2015 The Governor John Engler Center for Charter Schools at Central Michigan University
ABC ACADEMY 21
END
NOTES
Acronyms & Glossary Continued
Function – The broadest way to categorize the Academy’s expenditures is at the functional level, and is the basic account identifier for
expenditures outlined in the Michigan Public School Accounting Manual. The basic functional categories operated by most districts are
basic instruction, added needs instruction, pupil support, instructional staff support, general administration support, school administration
support, business support, operations and maintenance, transportation, central support, other support, community services and outgoing
transfers and other transactions. The Academy’s budget is adopted at the functional level.
Fund Balance – Term used for governmental funds representing the difference between assets and liabilities. Fund balance must be classified
as non-spendable, restricted, committed, assigned or unassigned.
FYE – Fiscal Year Ending (as of June 30th of that year).
Instructional Expenditures – Include teachers, teacher assistants, textbooks, classroom supplies and resources directly dealing with the
instructional program. These are direct classroom expenditures.
Land Contract – A contract between a seller and a buyer for the purchase of real property.
Liquidity – The ability to convert short-term assets into cash.
Local Sources Revenues – Funding from local contributions or local foundations, fee based school programs or student activities.
Object Code – The coding level which further defines/distinguishes between expenditures, and is the detailed coding for expenditures outlined
in the Michigan Public School Accounting Manual. The broad object code categories include salaries, benefits, purchased services,
supplies/materials and capital outlay. It is not a requirement of The Uniform Budgeting and Accounting Act to adopt the budget at this level
of detail.
Other Revenues – Transfers from another school district or another fund and proceeds from issuance of long-term debt.
Outgoing Transfers and Other Transaction Expenditures – Payments to other school districts, debt service and fund modifications.
Per-pupil Foundation Allowance – This amount is established by the legislature each year and accounts for the majority of the Academy’s
state revenue.
Section 31a At-Risk – Section 31a of the State School Aid Act provides funding to eligible districts. This funding is restricted for use in
increasing the academic achievement of at-risk students and cannot be used to cover any administrative or other related costs. This is the
state funding that is similar to Title I, Part A federal dollars.
Short-term Cash Flow Borrowings – Debt obligations that are incurred for cash flow purposes that must be repaid by the borrower in less
than 372 days.
State Sources Revenues – Funding from the state in the form of the foundation allowance and additional unrestricted and restricted funds.
Supporting Services Expenditures – Services that provide administrative, technical and logistical support to facilitate and enhance instruction.
This classification of expenditures includes non-classroom expenditures.
Title I, Part A - Improving Basic Programs – Federal Title I, Part A funds are restricted and are intended to help students that are not meeting
or most at risk of not meeting the achievement standards in four ‘Core Academic Areas’: English/Language Arts, mathematics, science,
and social studies. This funding supplements state aid and is used to provide a direct service to raise student achievement and parent
involvement. This funding is based upon student eligibility, thus follows the student.
22
Fiscal Performance Report 2013-2014
© 2015 The Governor John Engler Center for Charter Schools at Central Michigan University
END NOTES
Sources & Citations
Fig. 1
Source: The Charter Contract and Educational Service Provider Agreement (if applicable)
Fig. 2
Source: Michigan Department of Education, CEPI Public Data
Fig. 3
Source: Michigan Department of Education, CEPI Public Data
Fig. 4
Source: Michigan Department of Education, Michigan Student Data System fall - Unaudited
Fig. 5
Source: Michigan Department of Education, CEPI Public Data
Fig. 6
Source: Michigan Department of Education, MEAP and MME
Fig. 7
Source: Michigan Department of Education, CEPI Public Data
Fig. 8
Source: Michigan Department of Education, Michigan Student Data System fall - Unaudited
Fig. 9
Source: Michigan Department of Education, Michigan Student Data System fall - Unaudited
Fig. 10
Source: Michigan Department of Education, Michigan Student Data System fall - Unaudited
Fig. 11
Source: FID
Fig. 12
Source: Michigan Department of Education, August Financial Status Report
Fig. 13
Source: Michigan Department of Education, August Financial Status Report
Fig. 14
Source: Audited Financial Statements and FID
Fig. 15
Source: FID
Fig. 16
Source: FID
Fig. 17
Source: FID
Fig. 18
Source: FID
Fig. 19
Source: Short-term borrowing documents as received by the Center, Audited Financial Statements
Fig. 20
Source: Audited Financial Statements and letters issued by the auditor
Fig. 21
Source: Audited Financial Statements and FID
Fig. 22
Source: 4th Quarter Financial Statements and FID
Fig. 23
Source: FID
Fig. 24
Source: FID
SPECIAL NOTE:
Several of the charts and graphs presented in this Fiscal Performance Report were generated using the
Academy’s 2013-2014 Financial Information Database (FID) data files; a state-mandated submission through the
Center for Educational Performance and Information (CEPI) as well as a required submission to the Center per the
Master Calendar of Reporting Requirements. A component of this submission includes a verification statement
indicating that the FID data files uploaded to CEPI align with the Academy’s audited financial statements.
Questions surrounding discrepancies between the amounts presented in the charts and graphs in this FPR and
the amounts reported in the Academy’s audited financial statements for the year ending June 30, 2014 should be
addressed with the individual(s) responsible for the preparation and submission of the Academy’s FID data files.
Footer
© 2015 The Governor John Engler Center for Charter Schools at Central Michigan University
ABC ACADEMY 23
Central Michigan University | Mount Pleasant, MI 48859
989-774-2100 | www.TheCenterForCharters.org
February 2015
© 2015 CENTRAL MICHIGAN UNIVERSITY THE GOVERNOR JOHN ENGLER CENTER FOR CHARTER SCHOOLS