Charter school finances can feel intimidating to trustees without a strong financial background. Here are 50 questions you would be smart to review as a board annually. Ask away. And ideally, have the finance committee develop written answers to each of these questions.
- What is income from operations?
- What is net-income?
- What is net-loss?
- What is a fund balance?
- What's the projected net income at year-end?
- What does budget vs. actual mean?
- What is accounts receivable?
- What is accounts payable?
- What is a liability?
- What is an asset?
- What is the school's current enrolment and/or average daily attendance rate?
- Does it meet the budget?
- What's the projected year-end cash and do we have any months with tight/negative cash in the next 12 months?
- What month does the school have its lowest cash balance, and what steps are you taking to mitigate any potential cash shortfalls?
- Do we have cash reserves and how long are they sustainable for?
- How much does the school pay annually for facility rent and/or mortgage costs?
- Is our school reimbursed for facility lease costs?
- Do you know the beginning and ending dates of your fiscal year?
- When does your board approve the annual operating budget?
- What is a cash flow forecast used for?
- Does your board review and approve a position control?
- Does your school use accrual or cash accounting?
- What is the purpose of the annual audit?
- Does your board approve the annual audit?
- What is the definition of Public Funds?
- What is per pupil funding?
- Does your school have any debt?
- Does your school rely on a line of credit to meet cash needs?
- Is your school selling receivables?
- Does your school incorporate strategic goals into the budget planning process?
- Does your school approve a multi-year budget?
- Is your school leader’s annual salary board approved?
- Does your board allow employee loans?
- Does your school have a board approved fiscal policies and procedures handbook?
- Do you receive financial statements at every board meeting?
- Does your school have a finance committee?
- Does your school have an audit committee?
- Does your board review and approve the annual tax returns?
- Does your school have a whistleblower policy?
- What financial statements do you receive as a board member?
- Who prepares your annual operating budget?
- Do you receive state and federal government revenue updates?
- Does your school permit debit cards?
- Does your school have a credit card?
- Who is responsible for processing payroll?
- Who is responsible for the school’s financial reporting to the state and federal government?
- Does your charter authorizer conduct fiscal reviews?
- Does your board approve all forms of borrowing?
- Is your school a 501c3 non-profit corporation or a government agency?
- Does your school rely on fundraising to balance the budget?
- Does your school board approve contracts greater than a specific amount?
Updated