CONNECTICUT STATE DEPARTMENT OF EDUCATION DIVISION OF FINANCE AND INTERNAL OPERATIONS BUREAU OF GRANTS MANAGEMENT

Transcription

1 CONNECTICUT STATE DEPARTMENT OF EDUCATION DIVISION OF FINANCE AND INTERNAL OPERATIONS BUREAU OF GRANTS MANAGEMENT END OF YEAR SCHOOL REPORT FOR CHARTER SCHOOLS (ED001C) INSTRUCTION MANUAL SCHOOL YEAR REVISED JULY 2011

2 TABLE OF CONTENTS TOPIC PAGE INTRODUCTION... 3 GENERAL INSTRUCTIONS... 4 ASSISTANCE WITH ED001C AND INSTRUCTIONS 6 HIGHLIGHTS OF ED001C FORM AND MANUAL CHANGES FOR SCHEDULE 1: TOTAL EXPENDITURES AND ENCUMBRANCES BY SOURCE.. 9 SCHEDULE 2: SCHEDULE 3: SCHEDULE 4: TOTAL EXPENDITURES FROM ALL SOURCES BY FUNCTION AND OBJECT. 12 STATE CHARTER SCHOOL GRANT MONITORING OF THE RESERVE PROVISIONS PURSUANT TO C.G.S ee(d) OF CARRYOVER, CAPITAL PURCHASE, EQUIPMENT PURCHASE OR OTHER PROJECTS APPROVED BY COMMISSIONER OF EDUCATION CHARTER SCHOOL RELATED PARTY DISCLOSURE INFORMATION AND MANAGEMENT ORGANIZATION FEES PREPARER S CHECKLIST APPENDIX 1: GLOSSARY OF TERMS APPENDIX 2: POLICY STATEMENTS 33 APPENDIX 3: WORKSHEET FOR DETERMINING APPROVED CHARTER SCHOOL APPLICATION EXPENDITURES 37 APPENDIX 4: WORKSHEETS FOR IN-KIND SERVICES APPENDIX 5: SAMPLE FORMAT FOR STAFF DATA EXCLUDED FROM ED001C

3 INTRODUCTION Form ED001C, the END OF YEAR SCHOOL REPORT for CHARTER SCHOOLS, is the primary source of financial information on charter school education within the state. The data are used in providing statistical information to local, state and federal decision-makers. The ED001C was created specifically for charter school reporting. It is a modified version of the END OF YEAR SCHOOL REPORT (ED001) which all local school districts file with the State Department of Education. Classifications, coding and definitions are based on those listed in the federal publication FINANCIAL ACCOUNTING FOR LOCAL AND STATE SCHOOL SYSTEMS 2003 (Education Publications Center Publication ID: ERN3671P). This document is located on the Internet under the address The coding is intended to provide complete, uniform and comparable data from each charter school. Where necessary, however, we have created subcodes within a general grouping to allow for an appropriate reporting for our purposes. Refer to Connecticut General Statutes, Sections 10-66cc, 10-66dd and for legal authority for collecting data from charter schools. -3-

4 GENERAL INSTRUCTIONS Completing the Form: The ED001C is designed to collect all expenditures generated from the approved activities contained in the charter school application from all sources. This includes expenditures from state and federal grants as well as the value of in-kind services***. If the charter school provided services that were not part of an approved charter school application, they must not be included in this report regardless of their inclusion in the charter school budget. Specifically, do not include expenditures for the following: Adult education services; Before and after school daycare services; Community services; Salaries and fringe benefits for uncertified personnel in certified positions; Noneducational expenditures; Volunteer services; and PTO and PTA contributions. The ED001C must be completed using the accrual or modified accrual basis of accounting and cover the period July 1, 2010 through June 30, For local and state audit purposes, all supporting documentation and work papers generated in completing the report must be maintained. For certain state and federal grants, the local board of education has the option to 1) pass the grant money on to the charter school or 2) hold the money in an account, provide services to the charter school and pay for those services from that account. If the local board of education chooses the second option, ensure that you receive written confirmation of the agreed upon services (and the dollar amount) which came from that account for charter school services. Before completing the report, we suggest that you complete the Worksheet for Determining Approved Charter School Application Expenditures (see Appendix 3). To complete the ED001C form, you will need, in addition to your regular accounting records, the details of in-kind services*** provided by your local school district or other town officials (see Appendix 4). Place only one amount in each box. Do not enter zeros. ***Defined term: Appendix 1-4-

5 Filing: The Internet application is the sole source for reporting the ED001C data and any subsequent adjustments. Section of the Connecticut General Statutes requires the ED001C data to be submitted to the State Department of Education, Division of Finance and Internal Operations, Bureau of Grants Management (BGM) on or before September 1, Desk Audit Findings: A mailing will be sent to you in mid-october as part of a complete audit package based on your originally submitted report. A Charter s responses to all desk audit findings and their related adjustments must be supplied to the auditor prior to the auditing of the ED001C. In addition, a copy of responses provided to the auditor must be sent to the Bureau of Grants Management. All adjustments are to be made through the Internet application. These changes must be authorized by the director and should be reviewed by your auditors as part of the audit review package. Data Changes Requested by BGM Personnel: Due to grant deadlines and other time constraints, responses to BGM requests for adjustments and other information must be made within two weeks of the request. Audit: Section of the Connecticut General Statutes requires an audit of each Charter School s ED001C. It is the board s responsibility to ensure that the audit review package is submitted to the State Department of Education on or before December 31, However, because December 31, 2011 falls on a Saturday, the audit review package must be submitted on or before the next business day (January 3, 2012). This report should be either hand-delivered or mailed using certified mail (return receipt requested). The State Department of Education has designed a specific audit review package for charter schools under C.G.S This audit should not be confused with other potential audits involving charter schools. Another audit, for example, may be the Connecticut Office of Policy and Management's (OPM) State Single Audit. In addition, the audit submission deadline of December 31 under C.G.S cannot be extended, where other audits may allow for an extension of their submission deadline. It is the director s responsibility to maintain a file copy of the ED001C and all supporting documentation necessary for a complete audit trail, including appropriate documentation for data provided by the town. -5-

6 ASSISTANCE WITH ED001C AND INSTRUCTIONS FOR CLARIFICATION OF INSTRUCTIONS OR GENERAL ASSISTANCE IN COMPLETING YOUR ED001C, CONTACT: MARK STANGE DIVISION OF FINANCE AND INTERNAL OPERATIONS, BUREAU OF GRANTS MANAGEMENT..(860) OR AT: QUESTIONS ABOUT EMPLOYEES CERTIFICATION STATUS SHOULD BE REFERRED TO: BUREAU OF EDUCATOR STANDARDS AND CERTIFICATION..(860) OR AT: CT.GOV -6-

7 HIGHLIGHTS OF ED001C FORM AND MANUAL CHANGES FOR ED001C Form Changes The ED001C Form include no significant content changes. -7-

8 ED001C Manual Revisions The instructions include no significant content changes. -8-

9 SCHEDULE 1: TOTAL EXPENDITURES AND ENCUMBRANCES BY SOURCE Report all expenditures and encumbrances for elementary and secondary programs and services provided for the pupils of the charter school for the period from July 1, 2010 through June 30, This includes in-kind services*** provided to the school. If the charter school revenues and expenditures included services which went beyond the approved activities contained in the charter school application, those revenues and expenditures must not be included in the ED001C. For example, a charter school is approved to provide a kindergarten to grade four education program and the expenditures for that program are $500,000. In addition to that program, the charter school is asked by community leaders to run a recreational arts and crafts program for high school kids. The arts and crafts program is offered at night and costs $10,000. The costs for the arts and crafts program are covered by the fees paid by parents. This program is not part of the approved charter school application. However, the charter school accounting system is used to manage the collection of fees and payment of expenses. The charter school accounting system has the $10,000 of financial transactions in the system along with the $500,000 for the kindergarten to grade four program. The $10,000 for the recreational arts and crafts program must not show up on the ED001C. The charter school would only report the $500,000 for the kindergarten to grade four program. Appendix 3 contains a worksheet to crosswalk the charter school accounting records to the amount to be included on the ED001C. Complete the worksheet before completing Schedule 1. Column Instructions Column 1: Expenditures & Encumbrances: Report expenditures and encumbrances for each funding source listed on the schedule. If the local board of education receives a grant on your behalf and provides you with the services in lieu of passing on the grant check to the charter school, you should report the services from that grant revenue on the applicable grant line on the schedule. Do not report that as an inkind service*** on Line 127 or Line 128. Line Item Instructions The line item portion of Schedule 1 requires charter schools to break down their expenditures by funding source. This schedule is organized so that grants which pass through the State Department of Education are listed first, followed by other potential sources of funding. ***Defined term: Appendix 1-9-

10 Lines : For the grants which pass through the State Department of Education, the fivedigit number listed on Schedule 1 are the sixth through tenth digits from the accounting coding string that the State Comptroller s Office prints on all grant checks sent out from the state. Together, these five digits are referred to as the Special Identification (SPID) code number. For example, the State Operating Grant for Charter Schools has the accounting coding string of The Special Identification (SPID) code number is State Department of Education staff refers to that SPID code number when managing grant programs. That code number can be used as a reference to assist in posting your grant information in the appropriate line on Schedule 1. The Department of Education maintains a listing of all grants and their accounting coding string on the Internet under the address That listing is updated through out the year on an as needed basis. If the local board of education receives a grant on your behalf and provides the charter school with the services in lieu of passing on the grant check to the charter school, you should report the services from that grant revenue on the applicable grant line on the schedule. Do not report that as an in-kind service*** on Line 126 or Line 127. Line 123: Line 124: Line 125: Line 126: Other State Grants: This is the area to report state grants which are not listed in Lines 101 through 120. This area can include grants which came from the State Department of Education (other than those listed above), or they can be grants that came from another state agency. If you need to use Line 123, you also need to provide a list with the grant name and grant amount for each grant included on Line 123. Other Federal Grants: This is the area to report federal grants which are not listed in Lines 101 through 120. This area can include grants which came from the State Department of Education (other than those listed above), or they can be grants that came from another state agency or directly from the federal government. If you need to use Line 124, you also need to provide a list with the grant name and grant amount for each grant that is included on Line 124. Contributions: Report expenditures from monetary contributions or donations from a philanthropic foundation, private individuals or private organizations for which no repayment or special service to the contributor is expected. Note: The code number 1920 comes from the federal publication FINANCIAL ACCOUNTING FOR LOCAL AND STATE SCHOOL SYSTEMS It is the federal government s code number. It is not a SPID number like those in lines 101 through 120. Regular Education In-Kind Services*** from Local School District: This is the area to report the value of regular education services which local board of education employees or other town employees provide to the charter school. (See Appendix 4 for the worksheet and detailed instructions for this line.) ***Defined term: Appendix 1-10-

11 Line 127: Special Education In-Kind Services*** from Local School District: This is the area to report the value of special education services which local board of education employees or other town employees provided to the charter school. (See Appendix 4 for the worksheet and detailed instructions for this line.) As noted above in the column instructions, if the local board of education receives a grant on your behalf and provides the charter school with the services in lieu of passing on the grant check to the charter school, you should report the services from that grant revenue on the applicable grant line on the schedule. Do not report that as an in-kind service*** on Line 126 or 127. Line 128: Line 129: Line 130: Line 131: Line 132: Miscellaneous Income: Report expenditures from any minor type revenue source which cannot be categorized in Lines 101 through 127 or Lines 129 through 131. If you have some miscellaneous income which is a significant portion of your expenditures, then do not use Line 128. Use Line 132 to list any significant miscellaneous income source. Interest Income: Report any expenditures which came from interest income on this line. Loans: Report any expenditures which came from loans on this line. Retained Earnings: Report any expenditures which came from retained earnings on this line. Do not report any negative figures here in order to balance with financial statements. Other Sources of Revenue: Report any expenditures from miscellaneous income source which is a significant portion of the charter school expenditures. Line 199: Post column total on Line 199. Note that after completing Schedule 1 and Schedule 2, the total on Line 199, column 1 must equal the total on Schedule 2, line 298, column 1. ***Defined term: Appendix 1-11-

12 SCHEDULE 2: TOTAL EXPENDITURES FROM ALL SOURCES BY FUNCTION AND OBJECT Report on Lines 201 through 221, all expenditures and encumbrances for elementary and secondary programs and services provided for the pupils of the school. This includes in-kind services*** provided to the school. Schedule 2 is designed to break down the total expenditures and encumbrances reported in Schedule 1 (line 199, column 1) into their function and object categories. Connecticut follows the lead of the federal government when collecting expenditures by their function and object. The U.S. Department of Education s publication Financial Accounting for Local and State School Systems 2003 is the authority with respect to classifying expenditures/services by function and object code dimensions. (Note: This document is located on the Internet under the address Schedule 2 is a matrix type schedule. In order to eliminate the repetition in the instructions among common elements for each data cell, below you will find line item (function) instructions presented first, followed by column (object) instructions. Review the applicable line and column item instructions to determine what should be reported for each data cell in this schedule. Reporting of Expenditures by Line (function) The instructions are organized so that for each line on Schedule 2, you will find a quick reference to what should be reported on that line. The codes and descriptions listed for each line come directly from the function codes and major headings listed on pages 121 through 132 of the publication Financial Accounting for Local and State School Systems (Note: This document is located on the Internet under the address If you need further guidance, please refer to those pages. If there is any additional guidance beyond what is in the federal publication, it is included at the end of each line s instructions below under the heading Additional Instructions for Line NOTE: LINES 201 THROUGH 210 ARE FOR EXPENDITURES FOR REGULAR EDUCATION SERVICES. These are activities that provide pupils with learning experiences to prepare them for activities as citizens, family members and vocational workers. These activities contrast with those designed to improve or overcome physical, mental, social and/or emotional handicaps. ***Defined term: Appendix 1-12-

13 LINE 201: 1000 INSTRUCTION (ALL REGULAR EDUCATION PROGRAMS) 1000 Instruction Additional Instructions for Line 201: Line 201 includes the salaries and benefits of certified personnel*** providing instructional services. The salaries and fringe benefits for personnel without certification occupying certified positions are excluded from reporting on the ED001C. Report expenses for instruction of pupils whose backgrounds necessitate additional educational programs. Expenditures for programs for culturally disadvantaged pupils funded by the state under Section k (Compensatory Education) and federal funds from Title I (Basic Grant, Concentration Grant, Migrant Grant, Even Start Grant, Neglected or Delinquent Children Grant) and ARRA Title I Improving Basic Programs are included here. LINE 202: S SUPPORT SERVICES REGULAR EDUCATION STUDENTS 2100 Support Services - Students 2110 Attendance and Social Work Services. Among the services reported here are Supervision of Attendance and Social Work Services, Attendance Services, and Student Accounting Services Guidance Services. Among the services reported here are Supervision of Guidance Services, Counseling Services, Appraisal Services, Record Maintenance Services, and Placement Services Health Services. This includes Supervision of Health Services, Medical Services, Dental Services and Nursing Services Psychological Services. This includes Supervision of Psychological Services, Psychological Testing Services, Psychological Counseling Services, and Psychotherapy Services Speech Pathology and Audiology Services 2160 Occupational Therapy Related Services 2190 Other Support Services - Student Additional Instructions for Line 202: The salaries and fringe benefits for personnel without certification occupying certified positions are excluded from reporting on the ED001C. ***Defined term: Appendix 1-13-

14 LINE 203: IMPROVEMENT OF INSTRUCTION SERVICES 2200 Support Services - Instruction 2210 Improvement of Instruction Services 2212 Instruction and Curriculum Development Services 2213 Instructional Staff Training Services 2219 Other Improvement of Instruction Services 2220 Library/Media Services 2230 Instruction Related Technology 2240 Academic Student Assessment 2290 Other Support Services - Instructional Staff Additional Instructions for Line 203: The salaries and fringe benefits for personnel without certification occupying certified positions are excluded from reporting on the ED001C. LINE 204: S SUPPORT SERVICES GENERAL ADMINISTRATION 2300 Support Services - General Administration 2310 Board of Education Services. This include Supervision of Board of Education Services, Board Secretary/Clerk Services, Board Treasurer Services, Election Services, Tax Assessment and Collection Services, and Staff Relations and Negotiations Services Executive Administration Services. This include Community Relations Services, and State and Federal Relations Services. LINE 205: S SCHOOL BASED ADMINISTRATION 2400 Support Services - School Administration 2410 Office of the Principal Services 2490 Other Support Services - School Administration -14-

15 LINE 206: S OPERATION AND MAINTENANCE OF PLANT 2600 Operation and Maintenance of Plant Services 2610 Supervision of Operation and Maintenance of Plant Services 2620 Operating Buildings Services 2630 Care and Upkeep of Grounds Services 2640 Care and Upkeep of Equipment Services 2650 Vehicle Operation and Maintenance Services (Other Than Student Transportation Vehicles) 2660 Security Services 2670 Safety Services 2690 Other Operation and Maintenance of Plant Services Additional Instructions for Line 206: The Connecticut State Department of Education has developed a policy statement (see Appendix 2) regarding school expenditures in the areas of remodeling, extending service systems and improvements to sites. This policy was developed to assist in differentiating between capital and noncapital type school construction activities. Noncapital type school construction activities are reported on Line 206. Major school construction type activities are reported on Line 215. If you have any questions, call Mark Stange at LINE 207: S STUDENT TRANSPORTATION SERVICES (other than providing services to transport pupils from home to school and back home again) 2700 Student Transportation Services 2710 Vehicle Operation Services 2720 Monitoring Services 2730 Vehicle Servicing and Maintenance Services 2790 Other Student Transportation Services -15-

16 LINE 208: S AND SUPPORT SERVICES 2500 Central Services 2510 Fiscal Services. This include Supervising Fiscal Services, Budgeting Services, Receiving and Disbursing Funds Services, Payroll Services, Financial Accounting Services, Internal Auditing Services, and Property Accounting Services Purchasing, Warehousing, and Distributing Services 2530 Printing, Publishing and Duplicating Services 2580 Administrative Technology Services 2590 Other Support Services Central Services 2900 Other Support Services Additional Instructions for Line 208: The salaries and fringe benefits for personnel without certification occupying certified positions are excluded from reporting on the ED001C. LINE 209: 3100 FOOD SERVICES 3100 Food Services Operations LINE 210: 3200 OTHER ENTERPRISE OPERATIONS 3200 Enterprise Operations LINE 211: TOTALS Columns 1 through 8, this is the sum of Lines 201 through 210. NOTE: Expenditures reported in Lines 212 through 221 are not to be reported in Lines 201 through

17 LINE 212: SPECIAL EDUCATION SERVICES These are expenditures for activities primarily for pupils having special needs. These activities are for services for the gifted and talented, mentally retarded, physically handicapped, emotionally disturbed and special programs for other types of students. They are designed to improve or overcome physical, mental, social and/or emotional handicaps. The various functions and descriptions have not been repeated here. Refer to the function coding for Lines 201 through 205 above as those most likely to provide guidance. If applicable, IDEA Part B instructional expenditures should be reported here. LINE 213: HOME-SCHOOL-HOME TRANSPORTATION SERVICES (providing services to transport pupils from home to school and back home again) 2700 Student Transportation Services 2710 Vehicle Operation Services 2720 Monitoring Services 2730 Vehicle Servicing and Maintenance Services 2790 Other Student Transportation Services LINE 214: TOTALS Columns 1 through 8, this is the sum of Lines 211 through 213. LINE 215: S FACILITIES ACQUISITION/CONSTRUCTION 4100 Site Acquisition Services 4200 Site Improvement Services 4300 Architecture and Engineering Services 4400 Educational Specifications Development Services 4500 Building Acquisition and Construction Services -17-

18 4600 Site Improvement Services 4700 Building Improvement Services 4900 Other Facilities Acquisition and Construction Services Additional Instructions for Line 215: The Connecticut State Department of Education has developed a policy statement (see Appendix 2) regarding school expenditures in the areas of remodeling, extending service systems and improvements to sites. This policy was developed to assist in differentiating between capital and noncapital type school construction activities. Noncapital type school construction activities are reported on Line 206. Capital type activities are reported on Line 215. If you have any questions, please call Mark Stange at Note: Review the instructions for Lines 216 through 221 before completing any line. Lines 216 and Debt Service for Non-Facility Items such as Vehicles, Computers and Furnishings LINE 216: 5100 REDEMPTION OF PRINCIPAL 5000 Debt Service Additional Instructions for Line 216: Report the servicing of the principal portion of the charter school s debt service in Line 216 that is for non-facility items such as vehicles, computers and furnishings. LINE 217: 5100 INTEREST 5000 Debt Service Additional Instructions for Line 217: Report the servicing of the interest portion of the charter school s debt service in Line 217 that is for non-facility items such as vehicles, computers and furnishings. -18-

19 Lines 218 and Debt Service for Improvements to Facilities LINE 218: 5100 REDEMPTION OF PRINCIPAL 5000 Debt Service Additional Instructions for Line 218: Report the servicing of the principal portion of the charter school s debt service in Line 218 that is for improvements to an existing facility such as constructing walls to divide a room into two rooms. Improvements do not include building maintenance activities. LINE 219: 5100 INTEREST 5000 Debt Service Additional Instructions for Line 219: Report the servicing of the interest portion of the charter school s debt service in Line 219 that is for improvements to an existing facility such as constructing walls to divide a room into two rooms. Improvements do not include building maintenance activities. Lines 220 and Debt Service for Facilities Excluding Improvements LINE 220: 5100 REDEMPTION OF PRINCIPAL 5000 Debt Service Additional Instructions for Line 220: Report the servicing of the principal portion of the charter school s debt service in Line 220 that is for facilities (excluding improvements to an existing facility) such as the purchase of a building. -19-

20 LINE 221: 5100 INTEREST 5000 Debt Service Additional Instructions for Line 221: Report the servicing of the interest portion of the charter school s debt service in Line 221 that is for facilities (excluding improvements to an existing facility) such as the purchase of a building. LINE 298: TOTAL Column 1, this is the sum of Lines 214 through

21 Reporting of Expenditures by Column (object) The instructions are organized so that for each column on Schedule 2, you will find a quick reference to what should be reported in that column. The codes and descriptions listed for each column come directly from the object codes and major headings listed on pages 133 through 144 of the publication Financial Accounting for Local and State School Systems (Note: This document is located on the Internet under the address If you need further guidance, please refer to those pages. If there is any additional guidance beyond what is in the federal publication, it is included at the end of each column s instructions below under the heading Additional Instructions for Column TOTAL (COLUMN 1) For Lines 201 through 214, Column 1 is the sum of Columns 2 through 8. SALARIES (COLUMN 2): S Personal Services - Salaries 110 Salaries of Regular Employees 120 Salaries of Temporary Employees 130 Salaries for Overtime 140 Salaries for Sabbatical Leave 150 Additional Compensation such as Bonuses, or Incentives Additional Instructions for Column 2: Column 2 includes the salaries of certified personnel*** and noncertified personnel. The salaries for personnel without certification occupying certified positions are excluded from reporting on the ED001C. EMPLOYEE BENEFITS (COLUMN 3): S Personal Services - Employee Benefits 210 Group Insurance 220 Social Security Contributions ***Defined term: Appendix 1-21-

22 230 Retirement Contributions (Note: This does not include expenditures from funds provided to the Charter School from the State Teachers Retirement Board.) 250 Tuition Reimbursement 260 Unemployment Compensation 270 Workers Compensation 280 Health Benefits 290 Other Employee Benefits (Note: This does not include the co-pay that an employee provides to the Charter School for Health Benefits. In addition, this does not include the expenditures from funds provided to the Charter School from the State Teachers Retirement Board for Health Benefits. If the funding source of the expenditure can not be specifically identified, then the gross expenditure for the line item must be reduced by the revenue received, e.g., employee copayment or State Teacher Retirement revenue, to determine a net expenditure, or the amount of the expenditure supported by other than these source of funds.) Additional Instructions for Column 3: Column 3 includes the benefits of certified personnel*** and noncertified personnel. The fringe benefits for personnel without certification occupying certified positions are excluded from reporting on the ED001C. PURCHASED SERVICES -- RENT (COLUMN 4a): Renting Land and Buildings PURCHASED SERVICES -- OTHER THAN RENT (COLUMN 4b): S Purchased Professional and Technical Services 310 Official/Administrative Services ***Defined term: Appendix 1-22-

23 320 Professional-Educational Services 330 Other Professional Services 340 Technical Services 400 Purchased Property Services 410 Utility Services. Water/Sewage is included here. 420 Cleaning Services. Among the services reported here are Disposal Services, Snow Plowing Services, Custodial Services, and Lawn Care. 430 Repairs and Maintenance Services 440 Rentals 442 Rental of Equipment and Vehicles 450 Construction Services 490 Other Purchased Property Services 500 Other Purchased Services 510 Student Transportation Services 511 Student Transportation Purchased from Another LEA Within the State 512 Student Transportation Purchased from Another LEA Outside the State 519 Student Transportation Purchased from Other Sources 520 Insurance (Other Than Employee Benefits) 530 Communications 540 Advertising 550 Printing and Binding 570 Food Service Management 580 Travel 590 Intereducational, Interagency Purchased Services 591 Services Purchased from Another LEA Within the State 592 Services Purchased from Another LEA Outside the State -23-

24 SUPPLIES (COLUMN 5): S Supplies 610 General Supplies 620 Energy 621 Natural Gas 622 Electricity 623 Bottled Gas 624 Oil 625 Coal 626 Gasoline 629 Other 630 Food 640 Books and Periodicals 650 Supplies Technology Related EQUIPMENT (COLUMN 6): S (OTHER THAN 710 AND 720) 730 Equipment 731 Machinery 732 Vehicles 733 Furniture and Fixtures 734 Technology Related Hardware 735 Technology - Software 739 Other Equipment -24-

25 CAPITAL IMPROVEMENT (COLUMN 7): S 710 AND Land and Improvements 720 Buildings Additional Instructions for Column 7: Column 7 includes expenditures for capital improvements funding from the charter school s current operating budget. Capital improvements funding from other than the charter school s current operating budget (bonding) is reported on Lines 218 and 219. Expenditures for the maintenance of the facilities would not be reported here. OTHER (COLUMN 8): S Dues and Fees 820 Judgments Against the LEA 832 Interest 890 Miscellaneous Expenditures 900 Other Objects -25-

26 SCHEDULE 3: STATE OPERATING GRANT MONITORING OF THE RESERVE PROVISIONS PURSUANT TO C.G.S ee(d) OF CARRYOVER, CAPITAL PURCHASE, EQUIPMENT PURCHASE OR OTHER PROJECTS APPROVED BY COMMISSIONER OF EDUCATION Schedule 3 is designed to assist in monitoring the use of the Charter School State Operating Grant funds not spent in the current fiscal year. These funds not spent in the current fiscal year may be carried over to be expended in the following fiscal year or may be deposited in a reserve fund for certain projects for the charter school that can be expended beyond the next fiscal year. Part 1: Monitoring Expenditures from Prior Year s Carryover Funds Line 301: Line 302: Line 303: Carryover from Source Funds: This is the carryover amount from the grant source funds that was designated to be spent in the fiscal year. In the ED001C Internet application, this line is prefilled from the audited carryover amount reported on the ED001C in Line 310. Expenditures from Carryover Funds: Report here the amount from Line 301 that was expended during fiscal year Balance (Line 301 minus Line 302): In the ED001C Internet application, this line is automatically computed. [Note: If Line 303 is positive, this amount must be refunded to the State Department of Education.] Part 2: Line 304: Line 305: Line 306: Reserve Fund Balance (beginning of year): This is the amount from the grant source funds that was placed in the charter school reserve fund ( ED001C Line 311) plus any unexpended reserve funds that were placed in the reserve fund from years prior to ( ED001C Line 306). In the ED001C Internet application, this line is prefilled based on the ED001C data. Expenditures from Line 304: Report here the amount from Line 304 that was expended during fiscal year Reserve Fund Balance from Prior Year Source Funds (Line 304 minus Line 305): In the ED001C Internet application, this line is automatically computed. [Note: This balance excludes any current year ( ) contribution to the reserve fund listed below in Part 3, line 311.] Part 3: Monitoring Current Year State Operating Grant Funds Line 307: State Operating Grant (SDE): This is the State Operating Grant paid to the charter school. In the ED001C Internet application, this line is prefilled using State Department of Education payment records. -26-

27 Line 308: Statutory Maximum Carryover to be Expended in : This is 10% of the grant paid (Line 307). In the ED001C Internet application, this line is automatically computed. Line 309: Line 310: Line 311: Line 312: Line 313: Line 314: Statutory Maximum Amount for Capital, Equipment or Other Projects Reserve Fund: This is 5% of the grant paid (Line 307). In the ED001C Internet application, this line is automatically computed. Actual Carryover to be Expended in : Report here the amount of the grant that is to be used for the expenses of the charter school next year (fiscal year ). Note: This amount cannot exceed the amount in Line 308. Actual Amount for Capital, Equipment or Other Projects Reserve Fund: The charter school may create a reserve fund to finance a specific capital or equipment purchase or another specified project which the charter must request approval from the Commissioner of Education. Report here the amount of the grant that was placed in the reserve fund. Note: This amount cannot exceed the amount in Line 309. Amount of Line 307 Expended During Excluding Amounts Reported on Line 310 and Line 311: Report here the amount of the grant that was expended in excluding what was already reported on Lines 310 and 311. Total (Sum of Lines 310 through 312): In the ED001C Internet application, this line is automatically computed. Amount of Grant to be Refunded to State Department of Education (Line 307 minus Line 313): This amount of the grant must be returned to the State Department of Education. In the ED001C Internet application, this line is automatically computed. -27-

28 SCHEDULE 4: CHARTER SCHOOL RELATED PARTY DISCLOSURE INFORMATION AND MANAGEMENT ORGANIZATION FEES Report in Schedule 4 information related to the management of the charter school. Unlike the other schedules in the ED001C, where expenditures are limited to only those activities relating to providing elementary and secondary education services, in Schedule 4 report all charter school related party activity goods/services and/or management organization fees. As a result of reporting all related party activity and/or management organization fees, the amounts reported in Schedule 4 may be greater than those reported within the other schedules of the ED001C. When reporting the goods/services, report the annual amount by the type of good or service. If a related party provides more than one type of service during the fiscal year, e.g., bookkeeping services and transportation services, list both services and the annual amount for each service. Part 1: Charter School Related Party Disclosure Information Report in Part 1 information regarding related party activity involving the charter school. All related party activity must be disclosed. FASB Statement No. 57 provides guidance on the definition of related parties. Related parties include persons or organizations related through marriage, ability to control, ownership, family or business association. Past exercise of influence or control need not be shown, only the potential or ability to directly or indirectly exercise influence or control for the current school year. Your Certified Public Accountant (CPA) can provide assistance regarding the definition of related parties relative to FASB Statement No. 57. The State Department of Education s guidelines for auditing Schedule 4 will require that the CPA who reviews this schedule review all related party activity regardless of materiality. All related party activity is of equal importance, regardless of the amount, frequency or type of activity. Note: If a related party provides management-related type services, that information must be reported here in Part 1 and also reported again in Part 2 of this schedule. Line 401: Line 402: Are any individuals receiving compensation from the charter school related through marriage, ability to control, ownership, family or business association to any of the owners, operators or officials of this charter school? Respond with either a yes or no. Are any vendors that provide goods or services to the charter school, including the rental of property or the loaning of funds to this school, related through family association, common ownership, control or business association to any of the owners, operators or officials of this charter school? Respond with either a yes or no. -28-

29 Line 403: List the individual or company, the goods or services provided and the amount paid below. If the response to Line 401 or Line 402 is yes, then list the name of relative (or the company), the goods or services provided, and the amount paid. If more than one individual or organization provided goods or services, use an additional line to report that information separately. If an individual or organization provided multiple goods or services, use an additional line to report that information separately. Part 2: Management Organization Fees Note: If a related party provides management-related type services, that information must be reported here in Part 2 and also reported in Part 1 above. Line 405: Line 406: Are any charter school Board members or management level employees also Board members or management level employees of the charter school management organization? Respond with either a yes or no. Does the charter school pay fees to an organization for management-related services? Respond with either a yes or no. Lines : If the response to Line 406 is yes, then list the name of management company, the services provided and the amount paid. If more than one organization was paid a fee for management-related services, use an additional line to report each organization s information separately. -29-

30 PREPARER S CHECKLIST Have you excluded the salary and fringe benefits for each improperly certified teacher as determined by the Bureau of Educator Standards and Certification? Have you retained the required worksheet (format illustrated in Appendix 5) detailing the exclusion? Have you reported the expenditure for an asset on the ED001C rather than a depreciation expense amount for that asset? Other state or federal reports which the charter school may have to file for the fiscal year may allow (or require) that a depreciation expense be reported rather than the cost for that asset for the fiscal year. Depreciation for an asset should not be reported on the ED001C. Does Schedule 1, line 199, column 1 equal Schedule 2, line 298, column 1? Have you contacted the local school district to confirm in writing the grant amount(s) they have received on behalf of the charter school? Have you maintained a complete and final copy of your ED001C submission with all worksheets and full documentation (including in-kind services*** and grant amounts the local school district received on behalf of the charter school) for your audit records? ***Defined term: Appendix 1-30-

31 APPENDIX 1 GLOSSARY OF TERMS ED001C END OF YEAR SCHOOL REPORT The definitions included here are for purposes of completing the ED001C. They are not intended to supersede any statutory or regulatory definitions of similar or like terms. Defined terms are highlighted in the text of the manual by three asterisks ***. Questions about interpretation of these definitions or any perceived conflicts with definitions contained elsewhere should be referred to the Division of Finance and Internal Operations, Bureau of Grants Management for resolution at Certified Personnel means the gross salary for all certified personnel occupying positions requiring certification by the State Department of Education. PERSONNEL WITHOUT CERTIFICATION OCCUPYING CERTIFIED POSITIONS ARE EXCLUDED FROM REPORTING ON THE ED001C. A schedule detailing these uncertified salaries by funding source MUST be maintained along with the ED001C report upon completion. The uncertified personnel will be identified by the Teacher Certification Unit of the State Department of Education. Questions regarding the status of an individual reported on the uncertified list must be referred to the Bureau of Educator Standards and Certification at Debt Service means expenditures of the board of education or the town on behalf of the board of education to retire debt. Payments to retire loans or notes in the same fiscal year in which the borrowing occurred are treated as current expenditures. This definition applies to all debt, regardless of the nature of the purchase for which the borrowing occurred. Direct State and Federal Grants mean grants for which payment flows directly to the school (or town) from any agency of the federal government or any state agency other than the Department of Education. Equipment means an item excluding vehicles used for pupil transportation which has an expected useful life of greater than one year and an initial purchase price of over $1,000.00; retains its original shape and appearance with use; is non-expendable; and, does not lose its identity through transformation or incorporation into a different or more complex item. Expenditures mean all charges incurred (modified accrual basis) for the period July 1 - June 30 including the value of in-kind services. In-Kind Service means those expenditures for services provided by other municipal agencies which DIRECTLY SUPPORT the public elementary and secondary educational programs of the school. (See instructions for Schedule 1, lines 126 and 127 in Appendix 4 for detailed examples of allowable in-kind services.) Major vs. Minor Remodeling: See State Department of Education policy memorandum in Appendix 2. Note that no credit toward current expenditures may be claimed under this policy unless they are funded from the current operating budget of the board of education or the town. Debt service may be claimed only if the expenditure item meets the conditions of the remodeling policy (Appendix 2) and an approved Debt Service Claim Form (ED452) is on file with the State Department of Education. -31-

32 Public Expenditures mean all expenditures made by the local board of education and the value of in-kind services provided by other municipal agencies for the education of the PK-12 public school children of the school. Pupil School Transportation Expenditures include expenditures incurred to provide pupil transportation services. Examples of the types of expenditures incurred are the cost of vehicles (purchased, leased or leased-purchased), transportation supplies, contract transportation, and personal services and fringe benefits of bus drivers, school crossing guards, etc. Vehicles for Pupil Transportation - Net Cost means the total purchase price less any trade-in allowance or the actual cash expenditure for the purchase or annual lease of such vehicle, WHICHEVER IS LESSER. -32-

33 APPENDIX 2 POLICY FOR SCHOOL EXPENDITURES IN REMODELING, EXTENSION OF SERVICE SYSTEMS AND IMPROVEMENTS TO SITES Capital expenditures for land, buildings, and equipment otherwise supported by a state grant pursuant to Chapter 173 of the General Statutes and debt service are excluded from the calculation of Net Current Expenditures (NCE). These expenditures are defined in regulations of the State Board of Education under Section (c)-l(f). This policy is adopted to further clarify specific expenditures found in the above referenced regulation. Remodeling means a major permanent structural improvement. Major means 20% or more of the gross square footage of a building; or, in the case of exterior walls, 20% or more of the exterior surface of the building. Remodeling does not include expenditures for keeping the building in its original condition of completeness or efficiency, either through repairs or by replacement of property. It does not include the restoration of a given building to the original condition of completeness or efficiency from a worn, damaged, or deteriorated condition. Nor does it include expenditures for the repair or replacement of roofs. Examples: a) Moving a permanent partition within a room is not a major permanent structural improvement if the affected area involves less than 20% of the gross square footage of the building. b) Removing three windows and resurfacing with brick is not a major permanent structural improvement if the affected area involves less than 20% of the total exterior wall surface. c) Replacing a gym floor is not a major permanent structural improvement if the original floor was in a worn, damaged, or deteriorated condition. However, if it was not in a worn, damaged, or deteriorated condition and involves more than 20% of the gross square footage of the building, it is a major permanent structural improvement Extension of service systems means the enlargement or expansion of an existing service system. It does not include replacement of a service system with a more efficient, more powerful, or better quality system. Service systems include heating, cooling, water, disposal, mechanical, electrical, communications, and safety and security. Examples: a) Replacing a heating system with a heating/cooling system is an extension of the service system. b) Replacing the entire plumbing system of a building with higher quality tubing is not an extension of the service system. -33-

34 c) Replacing the electrical system in four rooms and extending the wiring into a new fifth room is an extension of the service system with respect to the fifth room only. The cost of replacing the wiring in the original four rooms is not an extension of the service system. Improvements to sites are permanent and structural alterations to the surface of the land, or any additional item permanently affixed to the land. Examples: a) Initial grading, landscaping, seeding, and planting of shrubs and trees, constructing new sidewalks, roadways, overpasses, retaining walls, sewers, and storm drains are improvements to sites. b) Installing water mains, field hydrants and sprinkling systems, and outdoor drinking fountains are improvements to sites. c) Original surfacing and soil treatment of athletic fields and tennis courts are improvements to sites. d) Furnishing and installing, for the first time, playground or playing-field apparatus built into the grounds, flagpoles, gateways, fences, and underground storage tanks that are not part of building service systems are improvements to sites. e) Off site improvements necessitated by improvements made on the site, such as installing sewer lines and building roads, are improvements to sites. -34-

35 CONNECTICUT STATE DEPARTMENT OF EDUCATION POLICY STATEMENT END OF YEAR SCHOOL REPORT ED001 - ADJUSTMENT OF EXPENDITURES Auditors may discover that expenditures have been included in the ED001 Schedule 1A (local effort) which either do not belong in the report at all, or belong in Schedule 2A (expenditures from nonlocal sources). In most cases, they will be able to identify the proper object lines and columns for adjustment purposes. In some isolated cases, particularly if miscellaneous town revenue from endowments, rentals, etc., is pooled with tax revenues in the appropriated budget, the district will not be able to identify specific objects of expenditures. In such cases, the auditors will know the amount to exclude, however, they may not be able to identify the lines of the schedule which should be adjusted. 1. If the total amount to be excluded represents less than or equal to 1% of the schedule total (or $10,000, whichever is less), exclude it from the line with the highest dollar value (Column 1 or Column 2, whichever is greater). If the expenditures excluded should have been properly reported on Schedule 2A, make the corresponding entry in the appropriate line of Schedule 2A to offset the exclusion from 1A. 2. If the total amount to be excluded represents more than 1% of the schedule total (or exceeds $10,000), prorate the exclusion among the 3 lines on Schedule 1A with the greatest dollar values, using Columns 1 and 2. Corresponding adjustments to Schedule 2A should be proposed as necessary. 3. If it can be determined that the exclusions impact reimbursable special education, but the objects cannot be identified, follow the same procedure, using Column 4 amounts only. If less than or equal to 1% of the Column 4 total, adjust the single highest amount. If greater than 1%, adjust the 3 highest Column 4 objects. Use of this procedure will provide for an accurate expenditure figure from local efforts for grant purposes. If the expenditures excluded from 1A are to be reported in 2A, the value of a particular object will not be affected. (Example: Certified personnel, object code 111, is the sum of Schedule 1A, line 1 and Schedule 2A, line 47.) If the excluded amount does not belong on the report at all and no specific object code(s) can be identified, using this procedure may delete the validity of the adjusted line(s) for statistical (not grant) purposes. This impact should be marginal in all cases. Note: Although this policy references a previous year s ED001 format, the policy remains in effect for this year s ED001 and is applicable to the ED001C for charter schools. -35-