Operational Framework - Utah Charter Access Point

CSAF OPERATIONAL FRAMEWORK

FINAL REPORTS

Introduction

Only an approved authorizer who promotes, annually reviews, and regularly evaluates school performance may authorize charter schools. Authorizers hold charter schools accountable for their performance following statutes, administrative rules, and each school’s unique charter agreement. The Utah State Charter School Board (SCSB) upholds stringent standards of authorization and oversight to ensure that charter schools use public funds as intended. By maintaining high standards, SCSB ensures the long-term viability of schools and mitigates potential underperformance using the Charter School Accountability Framework (CSAF).

Operational Certifications

Charter LEAs certify to a list of charter school operational items they are required to do by Utah law. This is submitted yearly by the charter LEA's Board Chair.

Timeline

The reports confirm the results of the previous school year. Local Education Agencies (LEAs) verify that they have completed the required tasks by the end of the school year, and the State Charter School Board (SCSB) staff prepares a final report by the following February.

OPERATIONAL FRAMEWORK REPORTS

Displays the operational certifications mandated for the charter LEA and highlights whether the LEA has fulfilled these requirements.

REPORT YEAR

OPERATIONAL FRAMEWORK REPORT

SY ---

LEA:

Report Date:

CREATE PDF

Report Results:

1. The Governing Board members are appropriately seated and have the capacity to provide appropriate oversight.

NOAll members have a background check on file.

NOThe Governing Board members have a signed conflict of interest form on file.

NOBoard approved budgets are submitted on-time through the UPEFS.

NOThe Board has adopted Rules of Order and Procedure that govern and prescribe in a public meeting: (a) parliamentary order and procedure; (b) ethical behavior; (c) civil discourse. AND the rules are available to the public.

2. The Governing Board operates in substantial compliance with the Charter Contract and applicable law.

NOThe Board certifies that it holds its meetings in compliance with OPMA requirements.

NOThe Board certifies that it has submitted all requested reports in a timely manner.

3. The School operates in compliance with the charter contract and applicable state, federal, and local laws.

NOAll of the following must be present: 1. The insurance of the school is provided through a carrier with not less than a financial rating of AAA, as rated in the most current available Best Guide insurance report.2. Coverage is up-to-date in all of the following areas:(a) General Liability; (b) errors and omissions; (c) directors and officers liability; (d) workers compensation; (e) comprehensive/collision consistent with cash values of vehicles, if applicable; (f) liability insurance specific to charter schools governing boards financial officer or treasurer or business administrator consistent with coverage designated in board rule; and (g) tail coverage or closeout insurance covering at least one year after closure of the school.3. The SCSB is named as an additional insured under all general liability insurance policies, except where there is common coverage provided by Risk Management.

NOThe school has received 0 complaints in the previous academic year.

NOThe enrollment and lottery policies and procedures of the school comply with state and federal law.

NOThe employees of the school have undergone background checks, per Utah Code 53G-11-402; AND the employees of the school are properly credentialed per state law, as certified in an assurance document signed by the governing board chair.

NOThe school and Board meet statutory minimums regarding the approval and publication of instructional materials.

NOThe website of the school is accurate, updated, and has all required reports and documents available.

4. The school is a safe environment for students, employees, and families.

NOThe school does not have any complaints on file that have been elevated to the Director and Associate Director level for follow-up communications.

Notes

Target: ≤ %

Transfer Rate = Number of transfered students / Total students

Definition: The percentage of students who leave the school during the year to go to another private or public school in the state, to go to home school, or who dropped out. Excluded are non-residents, students whose school of record is another school, students who attended the school for less than 10 days, and students in kindergarten.

Data Source: Enrollment and exit data reported to UTREx.

Target: ≥ %

Retention Rate = Students enrolled at end of previous year and still enrolled on October 1st / Students enrolled at end of previous year

Definition: Percentage of students enrolled at year-end who returned to a school within the LEA by October 1st of the following school year.

Data Source: Enrollment and exit data reported to UTREx.

Target: ≥ % of prior year October 1st enrollment count

Enrollment Trends = Current year October 1st count / Prior year October 1st count

Definition: A trajectory of October 1st enrollment and Average Daily Membership (ADM) derived from enrollment data reported to UTREx.

Data Source: Enrollment data reported to UTREx.

Definition: A comparison of a school’s end of year ADM to that school year’s October 1 counts. A significantly lower ADM compared to October 1 enrollment may negatively affect funding and could signal problems for a school to retain enrollment levels.

Data Source: Enrollment data reported to UTREx.

Unrestricted Days Cash on Hand = (Cash + Cash Equivalent - Total Funds in Restricted Programs) x 365 / (Total Operating Expenses - Annual Depreciation Expense)

Target:

UDCOH ≥ 60 days

OR UDCOH is between 30 and 60 days with a positive increase from previous year

New LEAs: This will not be used in the Financial Framework Report for LEAs in their first two years of operations.

Does the school have the cash to pay bills?

Definition: How long, in days, the school could meet their operating expenses without receiving new income.

Data Source:
Cash and Cash Equivalents: statement of net position
Cash Equivalent: statement of net position
Total Operating Expenses: statement of activities
Annual Depreciation: notes to financial statements

Total Funds in Restricted Programs are restricted funds that are entered in to reflect the decrease in cash.

Facility Ratio = (Operation and Maintenance of Facilities + Lease Payment + Debt Service) / Total Revenue

Debt Service = Annual Principal + Interest

Target: ≤ 20%

Definition: Total operation and maintenance of facility.

Data Source:
Statement of Revenue, Expenditures, and Changes in Fund Balance – Governmental Funds.
Notes Section of the Audited Financials.

Salaries and Benefits Ratio = (Total Salaries + Total Benefits) / Total Revenue

Target: ≤ 60%

Definition: The total salaries and benefits to the total revenue.

Data Source:
Summary - All Funds

Debt Service Coverage Ratio = (Change in Net Position + Depreciation + Interest Expense) / (Annual Principal + Interest + Lease Payment)

Target: ≥ 1.1

Is an LEA able to cover its debt obligations?

Definition: The ratio indicates a school's ability to cover its debt obligations in a current year.

Data Source:
AFS of public financial reporting download in October, Government wide

Debt to Asset = Total Liabilities / Total Assets

Target: ≤ 0.9

To what extent does an LEA rely on borrowed funds to finance its operations?

Definition: The amount of liabilities a school owes versus the assets they own.

Data Source: AFS or public financial reporting download in October, Government wide

Current Ratio = Current Assets / Current Liabilities

Target: Current ratio ≥ 1

Does the school have enough assets to meet its financial obligations over the next year?

Definition: Measures the school's ability to pay its obligations over the next 12 months. It shows how quickly short-term assets can be converted into cash to pay short-term liabilities.

Data Source: Statement of net position

Cash Flow = Current year cash balance - last year cash balance

Target: Cash Flow > $0

Does the LEA have a positive cash flow year over year?

Definition: The LEA's cash generated over a period of time indicating long-term financial stability.

Data Source: AFS or public financial reporting download in October, General Fund

Total Margin = Change in Net Position/Total Revenue

Change in Net Position = Total Revenue - Total Expenses

3 year aggregated = Sum of 3 years' Change in Net Position/Sum of 3 years' Total Revenue

2 year aggregated = Sum of 2 years' Change in Net Position/Sum of 2 years' Total Revenue

Target:

most recent Total Margin > 0% and 3 year aggregated is positive

OR 3 year aggregated > -1.5% and the previous year is positive and most recent year is positive

Is the LEA living within its means?

Definition: Measures an LEA's deficit or surplus out of total revenues (Includes change in temporary restricted net assets)

Data Source: AFS or public financial reporting download in October.

Deficit/Surplus (i.e. Change In Net Position) = Revenue - Expenses

Target: Surplus/Revenue > $0

Is the school living within its available resources?

Definition: Measures an LEA's deficit or surplus out of total revenues (Does not include temporary restricted net assets)

Data Source: Statement of Activities.

Enrollment Variance = Current year enrollment/budgeted enrollment

Target: Enrollment variance >= 95%

Is the enrollment sufficient to cover expenses?

Definition: Measures an LEA's student enrollment to their budgeted (projected) enrollment.

Data Source: UCAP, OCT 1 student enrollment, projections

Target: The LEA has not defaulted on loan covenant(s) or is not delinquent with debt service payments

Has the LEA defaulted on loan covenant(s) or is it delinquent with debt service payments?

Definition: Checks the LEA's responisibility towards loan covenants and debt service payments.

Data Source: AFS unless schools self reported

Material Audit Findings: PASSED

Is the LEAs audit satisfactory?

Definition: Auditor finds the financial statements to be accurate and complete, without material weakness, significant deficiency, or other matters.

Data Source: AFS