Budgets and Cash Flow
Governing Law: The petitioner or petitioners shall also be required to provide financial statements that include a proposed first year operational budget, including startup costs, and cash flow and financial projections for the first three years of operation- (Education Code Section 47605(g))
Attached, as Appendix C, please find the following documents:
These documents are based upon the best data available to the Petitioners at this time.
The Charter School shall provide reports to the District as follows, and may provide additional fiscal reports as requested by the District:
4. By September 15, a final unaudited report for the full prior year. The report submitted to the District shall include an annual statement of all the Charter School’s receipts and expenditures for the preceding fiscal year.
The Charter School shall acquire and finance general liability, workers compensation, and other necessary insurance of the types and in the amounts required for an enterprise of similar purpose and circumstance. The District Board of Education shall be named as an additional insured on all policies of the Charter School. In the event that the Charter School is permitted to locate on grounds controlled by the Port of Oakland, the Charter School shall at a minimum maintain insurance sufficient to meet the terms of a lease contract or other agreement with the Port of Oakland.
Prior to opening, the Charter School shall provide evidence of the above insurance coverage to the District.
Governing Law: The manner in which administrative services of the School are to be provided. (Education Code Section 47605(g)).
A school site Executive Director/Principal will assume the lead responsibility for administering the Charter School under the policies adopted by the School’s Board of Directors. The petitioners anticipate that the Charter School will provide or procure most of its own administrative services, including but not limited to financial management, personnel, and instructional program development. The petitioners have hired EdTech to provide business and back office services to the Charter School. The petitioners are interested in discussing the possibility of purchasing some of these or other services from the District. The specific terms and cost for these services will be the subject of an annual memorandum of understanding (“MOU”) between the Charter School and the District and subject to District availability.
Upon approval of the charter, if not completed during the charter approval process, the Charter School shall begin MOU negotiations with the District over contracted services. Should services be unavailable, or by August 1, 2006, if no MOU has been executed between the Parties, the Charter School shall obtain its own administrative services either in house or through a third party contractor.
Governing Law: The facilities to be utilized by the school. The description of facilities to be used by the charter school shall specify where the school intends to locate. (Education Code Section 47605.6(b)(5)(D))
The Charter School has begun discussions with the Port of Oakland to locate the school site at the airport in close proximity to technology that will be used in the aviation training program. In the event that the facility is not ready for fall 2006, the Charter School will file a Proposition 39 facilities request with the District to accommodate the Charter School for its first year of operations.
A separate written agreement between the District and the Charter School shall be executed regarding the use of District facilities.
Independent Fiscal Audit
Governing Law: The manner in which an annual, independent financial audit shall be conducted, which shall employ generally accepted accounting principles, and the manner in which audit exceptions and deficiencies shall be resolved to the satisfaction of the chartering authority—California Education Code Section 47605(b)(5)(I)
The Charter School will facilitate an annual independent audit of the school's financial affairs. The Board will select and oversee an auditor with education audit experience.
The audit will verify the accuracy of the Charter School's financial statements, attendance and enrollment accounting practices and review the school's internal controls. The audit will be conducted in accordance with generally accepted accounting principles applicable to the Charter School. It is anticipated that the annual audit will be completed four months after the close of the fiscal year and that a copy of the auditor's findings will be forwarded to the District, the County Superintendent of Schools, the State Controller and to the CDE by December 15th each year. The Charter School's Executive Director/Principal along with an audit committee will review any audit exceptions or deficiencies and report to the Charter School Board with recommendations on how to resolve them. The Charter School Board will submit a report to the District describing how the exceptions and deficiencies have been or will be resolved to the satisfaction of the District. Any disputes regarding the resolution of audit exceptions and deficiencies will be referred to the dispute resolution process contained in this Charter.
Governing Law: A description of the procedures to be used if the charter school closes-Education Code Section 47605(b)(5)(p)
The following procedures shall apply in the event the Charter School closes. The following procedures apply regardless of the reason for closure.
Closure of the Charter School will be documented by official action of the Board. The action will identify the reason for closure.
The Board will promptly notify the District of the closure and of the effective date of the closure.
The Board will ensure notification to the parents and students of the Charter School of the closure and to provide information to assist parents and students in locating suitable alternative programs. This notice will be provided promptly following the Charter School Board's decision to close the Charter School.
As applicable, the Charter School will provide parents, students and the District with copies of all appropriate student records and will otherwise assist students in transferring to their next school. All transfers of student records will be made in compliance with the Family Educational Rights and Privacy Act (“FERPA”) 20 U.S.C. § 1232g. The Charter School will ask the District to store original records of Charter School students. All records of the Charter School shall be transferred to the District upon Charter School closure.
As soon as reasonably practical, the Charter School will prepare final financial records. The Charter School will also have an independent audit completed as soon as reasonably practical, which period is generally no more than six months after closure. The Charter School will pay for the final audit. The audit will be prepared by a qualified Certified Public Accountant selected by the Charter School and will be provided to the District promptly upon its completion.
On closure of the Charter School, all assets of the Charter School, including but not limited to all leaseholds, personal property, intellectual property and all ADA apportionments and other revenues generated by students attending the Charter School, remain the sole property of the Charter School and shall be distributed in accordance with the Articles of Incorporation upon the dissolution of the nonprofit public benefit corporation. On closure, the Charter School shall remain solely responsible for all liabilities arising from the operation of the Charter School.
As the Charter School is organized as a nonprofit public benefit corporation, the Charter School Board will follow the procedures set forth in the California Corporations Code for the dissolution of a nonprofit public benefit corporation and file all necessary filings with the appropriate state and federal agencies.
^ ON THE DISTRICT
Governing Law: Potential civil liability effects, if any, upon the school and upon the District. (Education Code Section 47605(g)).
Potential Civil Liability Effects
This statement is intended to fulfill the terms of Education Code Section 47605(g) and provides information regarding the proposed operation and potential effects of the Charter School on the District.
The Charter School shall be operated as a California non-profit public benefit corporation. This corporation is organized and operated exclusively for charitable purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code and California Revenue and Taxation Code Section 23701d. One of the objectives of the corporation is to provide public education for residents of the State of California, in accordance with the Charter Schools Act, California Education Code Section 47600, et seq.
Pursuant to Education Code Section 47604(c), an entity that grants a charter to a charter school operated by or as a non-profit public benefit corporation shall not be liable for the debts or obligations of the charter school or for claims arising from the performance of acts, errors or omissions by the Charter School if the authority has complied with all oversight responsibilities required by law. The Charter School shall work diligently to assist the District in meeting any and all oversight obligations under the law, including monthly meetings, reporting, or other requested protocol to ensure the District shall not be liable for the operation of the Charter School.
Further, the Charter School and the District shall enter into a memorandum of understanding (“MOU”), which shall provide for indemnification of the District.
The corporate bylaws of the Charter School shall provide for indemnification of the school’s Board of Directors, officers, agents, and employees, and the Charter School will purchase general liability insurance, Directors and Officers insurance, and fidelity bonding to secure against financial risks. Insurance amounts will be determined by recommendation of the insurance company for schools of similar size, location, and type of program. The District shall be named an additional insured on the general liability insurance of the Charter School.
The Board of Directors of the Charter School will institute appropriate risk management practices, including screening of employees, establishing codes of conduct for students, staff, and participating families, and procedures governing financial transactions and dispute resolution.
By approving this charter, the Oakland Unified School District will be fulfilling the intent of the Charter Schools Act to increase learning opportunities for all pupils; create new professional opportunities for teachers; and provide parents and pupils with expanded choices in education and following the directive of law to encourage the creation of Charter Schools. The Petitioners are eager to work together with the District to set the highest standard for what an elementary school should and can be. To this end, the Petitioners pledge to work cooperatively with the District to answer any concerns over this document and to present the District with the strongest possible proposal for approval of a five-year charter to begin operation in August 2006. Renewal of the charter shall be governed by the standards and criteria in Education Code Section 47605 and/or applicable law.
1 See the following texts: Getting Started: Reculturing Schools to Become Professional Learning Communities, Professional Learning Communities at Work, Whatever it Takes: How Professional Learning Communities Respond When Kids Don’t Learn.
2 See section on Assessments
3 Getting Started: Reculturing Schools to Become Professional Learning Communities, page 5.