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50 Smart Questions to Ask About Your School's Finances


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.

  1. What is income from operations?
  2. What is net-income?
  3. What is net-loss?
  4. What is a fund balance?
  5. What's the projected net income at year-end?
  6. What does budget vs. actual mean?
  7. What is accounts receivable?
  8. What is accounts payable?
  9. What is a liability?
  10. What is an asset?
  11. What is the school's current enrolment and/or average daily attendance rate?
  12. Does it meet the budget?
  13. What's the projected year-end cash and do we have any months with tight/negative cash in the next 12 months?
  14. What month does the school have its lowest cash balance, and what steps are you taking to mitigate any potential cash shortfalls?
  15. Do we have cash reserves and how long are they sustainable for?
  16. How much does the school pay annually for facility rent and/or mortgage costs?
  17. Is our school reimbursed for facility lease costs?
  18. Do you know the beginning and ending dates of your fiscal year?
  19. When does your board approve the annual operating budget?
  20. What is a cash flow forecast used for?
  21. Does your board review and approve a position control?
  22. Does your school use accrual or cash accounting?
  23. What is the purpose of the annual audit?
  24. Does your board approve the annual audit?
  25. What is the definition of Public Funds?
  26. What is per pupil funding?
  27. Does your school have any debt?
  28. Does your school rely on a line of credit to meet cash needs?
  29. Is your school selling receivables?
  30. Does your school incorporate strategic goals into the budget planning process?
  31. Does your school approve a multi-year budget?
  32. Is your school leader’s annual salary board approved?
  33. Does your board allow employee loans?
  34. Does your school have a board approved fiscal policies and procedures handbook?
  35. Do you receive financial statements at every board meeting?
  36. Does your school have a finance committee?
  37. Does your school have an audit committee?
  38. Does your board review and approve the annual tax returns?
  39. Does your school have a whistleblower policy?
  40. What financial statements do you receive as a board member?
  41. Who prepares your annual operating budget?
  42. Do you receive state and federal government revenue updates?
  43. Does your school permit debit cards?
  44. Does your school have a credit card?
  45. Who is responsible for processing payroll?
  46. Who is responsible for the school’s financial reporting to the state and federal government?
  47. Does your charter authorizer conduct fiscal reviews?
  48. Does your board approve all forms of borrowing?
  49. Is your school a 501c3 non-profit corporation or a government agency?
  50. Does your school rely on fundraising to balance the budget?
  51. Does your school board approve contracts greater than a specific amount?

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