“Keep your child a step ahead.” 3241 Oakham Lane, St. Cloud, MN 56301 Tel. 320.217.6941 Fax: 320.217.6318 August 17, 2012 Ms. Beth Topoluk Executive Director Friends of Education 200 Lake Street East EX0-01-A Wayzata, MN 55391 Dear Beth: STRIDE Academy takes the concerns presented in the letter that Friends of Education (FOE) sent to the Board of Directors on July 16, 2012 very seriously. Since receiving the letter, STRIDE’s Board of Directors has worked very hard to research the concerns, provide explanations, and lay the ground work for putting in place better financial and management controls. Some of the concerns presented by FOE have already been addressed as of the writing of this letter, while others will take some time and continued hard work by the Board and staff. STRIDE is committed to improving our policies and procedures to ensure the continued success of STRIDE Academy and our students. Since receiving the letter dated July 16, 2012, the following steps have been taken: Regular Board meeting on 7/17 : Brief discussion and acknowledgement of the serious concerns brought up in the letter. Special Board meeting on 7/24 : Divide up items among Board members for further research and to begin to prepare the response. Special Board meeting on 8/1 : Board members reported back on the specific issues they were tasked with researching and finding appropriate responses and solutions for. This meeting was attended by approximately 25 parents, teachers, and community members. On 8/2, Jon Halter attended and addressed the full STRIDE Academy staff regarding the concerns and rumors. Teacher Board members left the meeting to comply with the Open Meeting Law. Special Board meeting on 8/13 : Dale Beutel placed on administrative leave until the investigation into the preliminary allegations is complete. Regular Board meeting on 8/16 : Our executive director, Mr. Beutel, was terminated with cause based on the Board research and findings regarding the allegations. Final response to the FOE letter was Board approved. Page 2 The remainder of this letter includes the specific issues and concerns identified, followed by the Board of Directors responses and corrective plans going forward: Conflict of Interest: Unfortunately, Dale Beutel did not check the box indicating that his daughter, Anna Beutel, worked for STRIDE on FOE’s “Conflict of Interest Statement” form. Mr. Beutel reports that it was simply an oversight on his part. Mr. Beutel’s daughter no longer works for STRIDE Academy. Mr. Beutel’s daughter was hired as an after school worker in the STRIDE Alive program by Julie Dickinson, STRIDE Alive Coordinator, in October of 2010. Anna was paid $8.00 per hour for a limited and varying work schedule that included approximately 6 hours per week. Anna’s employment at STRIDE Alive ended in May, 2012. Mr. Beutel did not play any role related to Anna’s work or reviews at STRIDE Alive. Rather, Ms. Dickinson supervised Anna and conducted her reviews. Although we regret Mr. Beutel’s oversight in not properly completing the form, we do not believe that Mr. Beutel had a statutory conflict of interest. I can assure Friends of Education that a lesson has been learned, and all future conflict of interest forms will be scrutinized more closely to ensure that the forms are properly completed. Director Evaluations: Revising the director evaluation process is something that the School Board was working on prior to receiving the FOE letter. At the 8/16 School Board Meeting, the School Board approved a new Executive Director Evaluation process. The new evaluation process is attached to this letter. Fund Balance Loss: Attached to this letter is a breakdown of the revenue and expenditure changes that resulted in the fund balance losses for the 2010/2011 and 2011/2012 school years. Based on the lessons learned from these budget variations, we have updated and improved our budget models going forward with more conservative assumptions related to staffing and enrollment figures. As of the writing of this letter, the budgeted enrollment was 473, and the actual students attending STRIDE Academy during the first week of classes is 478. We expect this to be a sign, that with continued hard work and financial diligence, STRIDE will have a positive operating budget for the 2012/2013 school year, and begin our slow climb to our new goal of a 25% fund balance. 2011/2012 Budget adjusting from a budgeted $15,020 surplus to a projected $173,456 deficit: The significant negative change can be attributed to many factors, but the more significant factors are: 1. Enrollment decrease from a budgeted 415 to an actual 402 2. Actual staffing was more than budgeted 3. Spending patterns and program costs for opening of the Middle School in the 2010-2011 school year included more ongoing costs than originally anticipated when the 2011-2012 budget was originally adopted. See attached breakdown of the revenue and expenditure deviations that further breakdown the difference in the 2011/2012 Budget. As stated above, we have made improvements to our budgeting assumptions based on the lessons learned from this past year. We also have some plans Page 3 in place, which are further explained later in this letter, to help ensure our free / reduced student counts are accurately reported going forward. Fund Balance Policy: Although our fund balance has decreased over the past few years for reasons outlined throughout this document, it is and has always been the Board’s desire to maintain a healthy fund balance. A 20% fund balance policy was adopted by the Board without realizing Friend of Education 25% fund balance requirement. We respect that requirement and will adjust our policy accordingly. Although we can adjust our policy in short order, actually building our fund balance will take some time, dedication, and strong leadership. Below are the current projections of our fund balance for the next five years (not including the increased enrollment numbers for this school year). As you can see, we expect to make some significant strides in the right direction. At our August 16, 2012 Board meeting, the first read through of a revised fund balance policy that included a 25% fund balance occurred, with intentions of approving that policy at our September Board meeting. Current = 3.5% 2012/2013 = 3.9% 2013/2014 = 6.3% 2014/2015 = 8.1% 2015/2016 = 9.1% See attached Multi-Year Budget Projection Model for more information and detail. Comment Regarding $100,000 Surplus: This comment was made by Dale as a goal. We were working through the 2012/2013 budget, and making expenditure cuts, reviewing revenues, and laying the ground work for the following (now current) years’ budget. The $100,000 surplus goal was no more than a comment. With the deep cuts that were already being considered, Dale had hoped that we could make enough cuts to provide a $100,000 surplus. That unofficial goal did not happen, as the School Board approved a budget that showed an $82 surplus. Since the adopted budget in June, some positive steps have been made in both enrollment and expenditure reductions, and the current working budget includes a projected $29,636 surplus. This working budget surplus of $29,636 conservatively includes an enrollment of 473, while the first few weeks of class have seen an actual enrollment closer to 478. Business Manager: STRIDE’s executive director is the School’s Business Manager. BKDA provides STRIDE with consultation services for financial management and human resources. The Board has been updated on the role of the Business Manager. Prior to the FOE letter, the School Board has expressed interest in exploring different administration structures that would include a Business Manager separate from the Executive Director Role. Over the next few months, the School Board will continue to explore our options with respect to the administrative structure. Page 4 Check # 6078: This check was made out to Dale Beutel for Security provided for building rentals for basketball practices between December 19th, 2010 and January 23, 2011. This check was made out for $345.00 and was paid for 20 hours of security at $15/hour plus $45.00 for mileage reimbursement. See attached documentation regarding this check. Financial policies regarding checks and balances will be addressed later in this letter. Check # 6081: This check was made out to Dale Beutel for Security provided for building rentals for volleyball events between January 9, 2011 and February 14, 2011. This check was made out for $389.70 and was paid for 25.5 hours of security at $15/hour plus $7.20 for supplies related to the volleyball tournament. See attached documentation regarding this check. Financial policies regarding checks and balances will be addressed later in this letter. Check # 43927: This check was made out for $414.00 for real estate taxes associated with the property behind the elementary school that is used for our playground, but owned by the Oak Knoll Tennis Association. Per a land use agreement regarding this property, STRIDE Academy pays the property taxes for the property we use for our playground. See attached documentation regarding this check. Check # 4145: This was a mileage reimbursement from Simply Outdoors, with a hand written receipt. Although not properly documented, our relationship with SOE has ended. Check # 4068: SOE wrote a check out to Mr. Beutel rather than writing it out to STRIDE Academy. Mr. Beutel promptly deposited the check in STRIDE’s account. Delinquent Accounts / Payments made within 35 days: In the past, STRIDE did not have an established practice of stamping invoices upon receipt to ensure that they were paid within 35 days of receipt or sooner as required by vendor. No legal action has ever been taken against STRIDE regarding any late payments. In regards to the Traut water cooler bill, the only explanation is that the bill must have been lost in the shuffle. That bill and all other bills are now current. STRIDE Academy and its administration realize that it needs to establish procedures so that invoices are promptly paid in accordance with Section 471.425. STRIDE has begun the practice of stamping the date received on all invoices to ensure a clear due date can be established 35 days from receipt. STRIDE Academy with the help of BKDA (our financial consultant) will work diligently to ensure all future bills are paid promptly within the 35 day requirements. See attached draft Internal Control Procedures. Financial Procedures: STRIDE’s School Board understands the need for better financial practices. The School Board, Finance Committee, and Administration have identified this as a very high priority that will take hard work, leadership, and sound advice. The Board is developing a Financial Controls Policy that will ensure better financial practices and documentation going forward. A draft Internal Page 5 Controls Procedures is attached to this letter. The School Board hopes to continue to develop and refine this policy to the point we can formally approve the policy this fall. Any input FOE would have regarding this draft policy is welcomed. Although the policy is in draft form at this point, STRIDE will begin to implement some of the financial management and controls identified immediately. One of the criticisms in the FOE letter, and in our past audit findings are transactions that are missing documentation. Although, the vast majority of transactions at STRIDE are properly documented, there is no excuse that 100% of the transactions going forward are not properly documented to ensure sound financial management and oversight. Some of the transactions that are missing documentation are associated with SOE. That relationship has now ended which will help eliminate some of the missing documentation issues. With better financial practices and oversight, STRIDE Academy’s School Board, Finance Committee, and Administration will work towards a goal of zero transactions going forward that do not include the proper documentation. STRIDE currently has a petty cash fund in the amount of $100 that is stored in a locked safe at each school. This money has been on site to be used in the event that small school related purchases are needed to be made when the executive director is not available. STRIDE has decided the petty cash funds are no longer needed, and per the new fiscal policies, the petty cash fund will no longer exist at either school. STRIDE has eliminated all but one debit card. The lone remaining debit card is in the possession of the executive director, and is used for online curriculum orders, costs associated with field trips that we cannot get a purchase order for, etc. STRIDE is committed to ensuring all background documentation is properly collected, and that the use of the debit card is minimized. STRIDE’s financial controls regarding the petty cash fund and the debit card are defined in the draft Financial Controls Procedures that is attached to this letter. Free / Reduced Reporting: In order to ensure free and reduced numbers are reported accurately and STRIDE collects all funds we are due, STRIDE is working on the following: 1. Collect as many free and reduced lunch applications as possible. We are proactively informing all of our families so that the families that qualify for this option are informed and understand how to fill out the proper forms. 2. MARSS and CLiCS Reporting training for the appropriate Administrative Assistants and at least one member of the Administration team 3. Power School training for the Administrative Assistants and at least one member of the Administration team 4. Included on the School Board Calendar (which is attached), is a plan to review the numbers submitted and the turn around reports to ensure proper reporting. 5. Although not a goal that can be accomplished this year, STRIDE is beginning to look into software systems other than Power School. Simply Outdoors Experiences: Our relationship with Simply Outdoors Experiences (SOE) began in November of 2010, and ended in January of 2012. Although the School Board never approved this relationship with a vote, there was a presentation to the School Board in October of 2010. An initial contract was Page 6 signed by Dale Beutel and Mr. Russel on behalf of SOE on 4/15/11. An agreement was signed in May of 2011 to end the relationship as of August 31, 2011. Although by 8/31/11, SOE had established its own 501(c)3 corporation, transactions continued until January of 2012. Although SOE and their educational outreach is a positive for STRIDE students, their relationship with STRIDE Academy should have never happened. Our relationship with SOE produced many errors and financial mistakes that included: Seven purchases over $1,000 that were never approved by the Board A $4,000 donation that was not approved by the Board. All donations are to be approved by the School Board. Authorized signers from SOE that were never approved by the School Board. In summary, although the relationship with SOE is regretful and has contributed to some audit findings, STRIDE’s relationship with SOE has ended. Audit Findings: As FOE noted in the letter, our Audit findings from 2009 with no deficiencies to the 2011 audit with three deficiencies clearly shows a need for improvement in our financial policies. As outlined later in this letter, STRIDE understands the need for improvement, and is beginning the steps necessary to approve a financial policy that will help us ensure future audits do not have deficiencies. The Board entrusted the regular financial reviews to the finance committee. The Board has, even prior to the letter from FOE, started a much more intensive involvement in the daily financials of STRIDE. Every Board member will be e-mailed a copy of all check registers by at least the Friday before the Board meeting (allowing almost one full week for review). The Board also has had several meetings in regards to finances, cutting costs, and policy revision. Additional resolution: The Board will perform its own monthly “proper documentation” audits. During each month’s financial portion of the meeting, a Board member not on the finance committee will request all documentation for random transactions for review. This process will continue at least for two years to clear up the “material weakness” listed on our audit. We want FOE to be aware that it is highly likely that due to the SOE relationship, we will experience another audit rating showing a “material weakness.” In reviewing our future audits, the Board plans to have the audit firm come to the Board meeting to walk us through the audit to ensure the Board and Administration clearly understand the audit and its findings (if any). Future Submittals to FOE: Attached to this letter is a chart outlining all of the submittal due dates for each month. This schedule has been Board approved, and will be revisited on a yearly basis to update and modify this document as needed. In addition to developing the attached submittal chart, BKDA will begin a practice of including FOE on the emails that include the monthly financial reports and management reports. Stride Academy St. Cloud, Minnesota Analysis of 2010-2011 Budget vs. Actual Variance Revenues Actual enrollment was 348 students for the year, compared to a budget of 348, which was a positive variance of 3.86 ADM for funding purposes $25,570 Targeted Services Program revenue was higher than budgeted, based on actual number of students served $12,699 State Special Education Aid was higher than budgeted, based on the actual costs of the program $119,033 Prior Year estimates were underestimated when last year's audit was completed $11,512 Revenues for Federal Programs (Title and Special Education) were less than budgeted, based on actual program expenditures) ($25,566) Other Local Revenues (Fees from Students, Donations and Gifts, Other Local Revenues) were lower than budgeted ($21,948) Revenues for Food Service Programs were less than budgeted, primarily in the revenue for fees charged for meals served) ($12,415) Fees and other revenues for programs operated in the Community Services Fund were less that budgeted ($5,831) Total Revenues $103,054 Expenditures Targeted Services Program expenses were higher than budgeted ($4,287) Expenditures for Special Education Programs that qualify for State Aid were higher than budgeted ($131,475) Expenditures for Federal Programs were lower than budgeted $25,566 Expenditures for Food Service Programs were higher than budgeted ($15,205) Expenditures for programs operated in the Community Services Fund were higher than budgeted ($7,471) Salaries and Benefits for General Education Programs were higher than budgeted ($29,061) Cost of Bonuses paid (Q Comp and Other) increased by 103% from the prior year, and were higher than budgeted ($22,276) Fundraising Costs were $8,947 less than receipts and higher than budgeted, including transferring funds to the PATHS organization ($7,539) Fees paid for student Field Trips and other events were higher than budgeted ($8,502) Planning Costs for opening the Middle School building were higher than projected ($6,143) Other Operational Costs for the year, including the Middle School program, were higher than projected ($4,050) Total Expenditures ($210,442) Overall Variance ($107,388) Stride Academy St. Cloud, Minnesota Analysis of 2011-2012 Adopted vs. Revised Budget Change Revenues Adopted Budget Revenues $4,177,762 Enrollment decrease from 415 to 402 students, resulting in a reduction of 15.55 WADM ($55,273) Reduction in Building Lease Aid due to reduction in enrollment ($18,661) Increase in State Special Education Aid, based on projected program costs $68,337 Increase in Targeted Services Program revenue, based on participation $4,499 Adjustments for prior year state aid revenues ($2,542) Increase in Federal Title Programs revenue based on allocations $30,550 Increase in Federal Special Education revenue based on allocations $14,766 Final allocation of Federal Education Jobs Fund grant $14,108 Food Service Program revenues ($6,641) Community Services Programs revenues ($19,797) Local revenues for gifts and grants, fees, fundraising ($31,127) Total Budget Changes ($1,781) Revised Budget Revenues $4,175,981 Expenditures Adopted Budget Expenditures $4,130,942 Salaries and Benefits $254,765 Salary and wage increases given in excess of amounts budgeted Positions added in prior year that were unbudgeted and continued in current year Hourly employees working more hours that Administration approved, in some cases making employees eligible for insurance benefits Dean of Students/Special Education Director - 25% of time moved from federal special education grant to general fund Library paraprofessional position added Cost of Paid Time Off (PTO) for Principal added to the budget Increased costs for merit pay estimated, based on prior year costs Contracted Services budget reduced ($15,000) Telephone, Postage, Utilities, and Property/Liability Insurance budgets reduced ($18,903) Repairs and Manteca budget reduced ($12,674) Transportation budget increased $15,564 Travel for conferences/staff training and between school buildings budget increased $2,959 Field Trip fees and other entry fees budget increased $2,228 Building Lease budget increased based on property tax costs $266 Other Rentals and Operating Leases budget increased $743 Special Education Costs for Student Services budget increased $4,619 Supply, Instructional Materials, Textbooks, Standardized Tests, and Media Resources budgets reduced ($23,971) Technology and Other Equipment budgets reduced ($10,218) Targeted Service Program, Federal Title and Special Education Programs budgets increased based on revised allocations $10,135 Food Service Program budget increased $7,608 Community Services Programs budget increased $374 Total Budget Changes $218,495 Revised Budget Expenditures $4,349,437 Adopted Budget Revenues less Expenditures $46,820 Revenue Budget Changes ($1,781) Expenditure Budget Changes ($218,495) Revised Budget Revenues less Expenditures ($173,456) Mission: STRIDE Academy will provide educational experiences for all children promoting a strong foundation in all core academic areas. Using researched based curriculum, students will excel academically through real‐life educational experiences in a challenging, caring, and student‐centered environment. By meeting each student’s unique educational, emotional, and social needs, students will be empowered to become responsible life‐long learners and leaders. Date: To: From: Board of Directors for STRIDE Academy Subject: Executive Director’s Evaluation STRIDE Academy values excellence in its academic and administrative programs. It is committed to creating and maintaining an environment that emphasizes the importance of relating work performance to its mission. This evaluation supports that commitment and establishes the foundation for the performance evaluation process. The actual performance assessment serves several purposes. It encourages executive director’s involvement, provides a formal mechanism for director to receive feedback regarding job performance and expectations, and allows the director to work closely with the School Board to establish goals and priorities. Performance assessment also facilities growth and development of executive director and results in a documented history of the director’s performance. Instructions: This evaluation is completely confidential so we ask you to be as candid as possible. We ask that you provide comments specific examples of how this individual demonstrates strengths and improvement needs in as many categories as possible. The feedback you provide will be considered as input to the overall evaluation of performance, and in the creation of an individual development plan. You may indicate to what level your expectations are being met by checking the appropriate box to clarify your written feedback. If you are unable to provide this feedback, please notify the Executive Review Committee Chair. 1 | P a g e Complete and return in the enclosed sealed envelope to Executive Review Committee Chair no later than October 1st/February 1st/June 1st Evaluation for: ______________________, Executive Director of STRIDE Academy Evaluation Date: Assessor (Optional): _________________________ Please check the appropriate box for each performance factor. You may provide comments using examples of actual behavior‐ although doing so is optional. Your evaluation will be summarized to include common themes with specific details kept confidential. The school board would like to thank you in advance for your time, input, and immediate attention to this request. Levels of Performance: 5 ‐ Outstanding (Performance yields extraordinary results). 4 ‐ Highly Accomplished (Performance consistently generates results above those expected of the position). 3 ‐ Successful (Performance fully meets job expectations and occasionally generate results beyond those expected). 2 ‐ Needs Improvement (Performance meets some, but not all, job expectations). 1 ‐ Unsatisfactory (Performance is below job requirements. Immediate improvement is required). 2 | P a g e 1. Mission/Philosophy Support: __‐Outstanding (5) Demonstrates an understanding of their own area of responsibility fits within __‐Highly Accomplished (4) the mission of STRIDE Academy and the ways in which it impacts others __‐Successful (3) within the organization. To include supporting staff, parents, and students to __‐Needs Improvement (2) the mission. __‐Unsatisfactory (1) Strengths: (specific examples) Improvement Needs: (specific examples) 2. Financial Management: __‐Outstanding (5) Works with the Board to develop and manage the budget. Completes financial __‐Highly Accomplished (4) management of STRIDE Academy, including the development and implementation of __‐Successful (3) the annual budget, completions of reports required for fiscal reimbursement, and __‐Needs Improvement (2) auditing procedures. Ensures compliance with UFARS and GAAP. __‐Unsatisfactory (1) Strengths: (specific examples) Improvement Needs: (specific examples) 3 | P a g e 3. Legal & Compliance Management: Is knowledgeable regarding day‐to‐day legal and compliance requirements of __‐Outstanding (5) operating a Minnesota charter school. Ensures school operates with all __‐Highly Accomplished (4) applicable legal requirements. Ensures timely filling of required reports to __‐Successful (3) the Minnesota Departments of Education. This includes policy review __‐Needs Improvement (2) according to MDE. __‐Unsatisfactory (1) Strengths: (specific examples) Improvement Needs: (specific examples) 4. Board Relations: Provides accurate and timely information to all board members. Works with __‐Outstanding (5) the Board to establish short‐term and long‐term goals, assessing the school’s __‐Highly Accomplished (4) on‐going alignment to its mission, and ensuring student achievement. __‐Successful (3) Attends all board meetings. Provides additional information that might be of __‐Needs Improvement (2) interest to the Board. __‐Unsatisfactory (1) Strengths: (specific examples) Improvement Needs: (specific examples) 4 | P a g e 5. Authorizer and Community Relationships: __‐Outstanding (5) Ensures charter contract requirements and authorizer requests are fulfilled __‐Highly Accomplished (4) in a timely manner. Develops and implements a program to ensure regular __‐Successful (3) communication with parents to encourage parent involvement and __‐Needs Improvement (2) participation in the school. Promotes STRIDE Academy and develops good __‐Unsatisfactory (1) relationships with interested people outside the school community. Strengths: (specific examples) Improvement Needs: (specific examples) 6. Instruction & Assessment: Implements all designated academic programs and ensures alignment with __‐Outstanding (5) state standards. Makes research‐based recommendations to the board __‐Highly Accomplished (4) regarding curriculum enhancement. Provides appropriate professional __‐Successful (3) development to teachers and staff. Supervises all required standardized tests __‐Needs Improvement (2) as well as additional tests to diagnose student needs and to assess student __‐Unsatisfactory (1) academic progress. Evaluates data to ensure instruction and student achievement is on‐track to achieve grade‐level standards. Supervises administration who works with teachers to develop specific plans to assist all students in increasing individual student achievement. 5 | P a g e Strengths: (specific examples) Improvement Needs: (specific examples) 7. Staffing & Staff Development/Evaluation: Recommends to the Board all hiring and termination of staff. Provides __‐Outstanding (5) instructional leadership to teachers and ensures appropriate and __‐Highly Accomplished (4) documented evaluation of all staff. Reviews progress of current __‐Successful (3) administrative structure to the board quarterly. Ensures all staff follows __‐Needs Improvement (2) policies and procedures authorized by the Board and the Minnesota __‐Unsatisfactory (1) Department of Education. Strengths: (specific examples) Improvement Needs: (specific examples) 6 | P a g e Stride Academy Yearly Board Meeting Schedule July ‐ Organizational Meeting Induct members, elect officers Approve MSBA membership and subscriptions Award bids for commodities Review opening week activities Buildings and Grounds report Set meeting dates for upcoming school year Set substitute teacher and paraprofessional pay Director’s evaluation (offered to be closed session) Review Yearly Board Meeting Schedule August ‐ Board Training & Forming Committees Review opening week, including enrollment numbers Review extra‐curricular activity report New members attend new board member training Confirm committees and members September ‐ Preliminary UFARS (Financial Data) Confirm preliminary upload of UFARS data (financials) Report and review data on MCA results Develop authorizer, MDE and/or annual curriculum report Director’s quarterly report on administration team October ‐ MARSS (Student Data) Reporting Approve and submit annual charter performance report to MDE MARSS Reporting to MDE STARS personnel reporting to MDE Testing results reported and due to FOE 11‐1‐12 November ‐ Finance Finals Confirm final UFARS updates Submit form for school finance award STRIDE Alive report Publish current and prior year budget information to clientele (primarily parents) Review and approve final audit – DUE FOE 12‐1‐12 December ‐ Budget Revisions Budget revision based upon audit, enrollment, finalize budget Approve progress reports on Corrective Action Plans (CAP) from audit Final (hard copy) audit to FOE & MDE` Organize attendance at MSBA Leadership Conference Director’s quarterly report on administration team Responses to financial audit management letter (if any) Due 1‐1‐13 January – Mid‐year reflection Review enrollment projections MSBA Leadership Conference Review enrollment numbers as related to budget Special Education Report to the Board Self‐Reflection by the Board February – Update on Assessments & Student Achievement Report form Panther program showing mid‐year growth related to NWEA Review on building needs and parent contact organizations Approve School Calendar for next year Review Winter NWEA testing prepare for submittal to FOE March – Preliminary Budget Director’s quarterly report on administration team Review staffing and supply needs Review all corrective action plans from past audit Review staff expenditures Review all assumptions and preliminary numbers for upcoming budget year April – Curriculum, Building and Services Review all curriculum progress to date Approve summer work schedule Review all building needs including lease status for coming year Hold School Board Elections Confirm transportation needs with host district or vendor Confirm audit contract Attend year end training (regional and/or MDE) Draft budget for upcoming year‐submit to FOE 5/1/13 May – Personnel & Enrollment Confirm personnel needs and hiring process Submit lease agreement to state Submit Title grants as required or needed Submit Food and Nutrition grant as required or needed Confirm enrollment projections Review polices for which annual review is required Approve school calendar for the following year Approve final budget – due to FOE 6/1/13 June – Final on Preliminary Budget & Grants Review handbooks (Student, parent, teacher, athletic) Adopt preliminary budget Board self‐evaluation/in‐service Establish meal ticket prices Director’s quarterly report on administration team Report and review data from NWEA testing submit to FOE Review strategic plan, adopt and implement continuous academic improvement plan – due FOE 7‐1‐13 Develop Teacher Retention Plan – due FOE 7‐1‐13 Ongoing items: Enrollment updates, policy approvals, committee updates, updated budgets, staffing, treasury reports Classification of Fund Balances The policy of the School is to classify its fund balances based on the nature of the particular net resources reported in the separate funds of the School. Nonspendable net resources will be identified first followed by restricted, committed, assigned, and lastly unassigned as per the guidelines in Governmental Accounting Standards Board (GASB) Statement No. 54. The School's goal shall be to maintain an unrestricted general fund balance of not less than the amounts stated above for a Fund Balance Reserve Level. When the Unrestricted General Fund balance is projected to drop below the Reserve Level, the School shall initiate measures to either generate additional revenue or to reduce expenditures through a budget reduction, or a combination of both. The Board of Directors shall be responsible for committing any fund balance portions to specific purposes. Once the action has been taken, committed funds cannot be used for any other purpose unless the commitment is rescinded by the Board of Directors. Examples of committed general fund balances are general funds set aside for specific projects or school expansion. The Board of Directors delegates to the executive director and chief financial officer the authority to assign fund balances for specific purposes. Examples of assigned general fund balances are funds set aside for technology, employee severance costs, and fiscal stabilization. The Board of Directors hereby establishes the following order for resource use: Restricted funds shall be spent first followed by unrestricted funds. For unrestricted funds, committed fund balances should be spent first, followed by assigned fund balances and lastly unassigned fund balances for amounts in which any of those fund balances may be used. STRIDE Academy Internal Control Procedural Improvements Revenue and Cash Receipts Cycle: All cash or checks received in the building need to be sealed into an envelope and put into the locked box located in the office. Follow the Deposits Procedures (see attached document) for record keeping of these items. Director conducts check that all deposit procedures are followed. Implement the following policies: o Non-sufficient funds (NSF) policy, for NSF checks o Late charge policy, especially for chronically late payers o Timely bank deposit policy weekly or within 24 hours of event Purchasing and Cash Disbursements Cycle Purchase Authorization Form (PA) signed for both the Requestor and Approver o Staff requests (other than the Director) over $25.00 to be approved by Assistant Principals per building. o Staff requests over $1,000 to be approved by School Board. Debit Card Purchases o All debit card purchases are initiated with a Purchase Authorization Form (PA) signed by both the Requestor and the Director. o Director approves and signs the Vendor Payment Request (VPR). o The Requestor is responsible to turn in all receipts for the debit card purchases to the Director to attach to the VPR. o Treasurer of the School Board approves and signs credit card expense report (including supporting documents) monthly. o Outside business/accounting firm conducts match between Purchase Authorization Form (for purchases over $1,000 per policy), receipt/invoice, and debit card expense report. o Any purchases made with the debit card not authorized will be expected to be repaid by the requestor within two days or no receipt received after seven days. Checks Purchases o Requestor must fill out a Purchase Authorization Form (PA) and receipt/invoice prior to pay-out. If a receipt or invoice is not available prior to purchase they must submit one within 7 days of purchase. These items must be approved by two of the three following people Director, School Board Chair, or Treasurer. o Reimbursement request policy provides for no longer than 30 days to request a reimbursement. All reimbursement must take place through outside accounting firm and NOT to be issued a check or cash. Employee Reimbursement/Expense Form must be completed with supporting receipts and faxed to outside accounting firm for check to be issued. Staff will NOT be reimbursed sales tax. Budget to actual spending report prepared by outside accounting firm submitted to the School Board for monthly review. There is no longer a Petty Cash in either school. All items must go through the PA system. Simply Outdoors Experience (SOE) Background Information In this section, FOE asked us to answer the following: SOE violates applicable law and disbursements deviated from GAAP, FOE was not made aware of the relationship with SOE, the Board required the contract to terminate on 08/31/2011 and approve all transactions over $1,000 at the May 10, 2011 meeting‐ why did the SOE relationship continue until January 2012, why did the board approve activity in contravention to applicable laws, Check #4068 for $200 is not adequately documented, and Executive Director’s approval of mileage without a business purpose listed. Upon review of published board minutes as well as personal minutes, we have found that STRIDE Academy School Board did not authorize our Executive Director, Dale Beutel, to take Simply Outdoor Experiences into our program. The SOE program was originally to be presented at the September 2010 meeting, but it was cancelled from the agenda due to a scheduling conflict of Mr. Sankey (per Dale Beutel interview 08/10/2012). The group did present at the October 19, 2010 meeting. The published Board minutes read as follows: 4. Ultimate Outdoor Experiences: STRIDE Outreach Simply Outdoor Experiences‐ For young boys and girls to build self‐confidence through outdoor experiences. STRIDE Academy is looking at overseeing this non‐profit organization until they get a 501C3approval. This would allow STRIDE to network with another organization as well as benefit our students. We need to take this to our lawyer and bring information/recommendation to next board meeting Simply Outdoor Experience was never again brought to the Board for approval. February 2011, SOE reported to the Board as a point of information. They were having another event and hosting our third annual ice fishing event for which they received money from PATHS (our parents’ organization). No action was required by the Board. At the April 19th, 2011, Board Meeting, the published minutes note that “Outdoor Experience on our budget questioned.” “Outdoor Experience will have their own 50143C [SIC] by end of fiscal year.” May 10th, 2011, this Board took action to terminate the unauthorized relationship with Simply Outdoor Experiences. We reiterated that it is our policy is to approve all checks over $1,000 (this is not a new policy and pertains to all STRIDE accounts). Additionally, we gave SOE until August 2011 to be off of our accounts. Additional conversation from that meeting included: no additional cost to STRIDE as BKDA is a flat fee audit, that volunteers are screened, and that there were no additional insurance costs to us for having SOE on our policy. Specifically stated to our Executive Director at that time is that this agreement should have come to the board ahead of time [personal meeting notes of Board member Shawna Kedrowski]. Even though the relationship was not authorized by the Board, our Executive Director did receive an opinion from our legal counsel, Amy Mace and Trevor Helmers. The opinion contemplated that SOE would be a part of STRIDE and would be classified as an extra curricular or community education group under the direction of STRIDE Academy. An agreement was drafted and signed by our Executive Director and Simply Outdoors Experience Vice President/Treasurer on 4/15/2011. This contract was not authorized by the Board. This contract was signed before the first questions of the Board took place as to why SOE is on our finance reports. An additional document, labeled as an Addendum dated May 2011 advises SOE that STRIDE is requiring the contract to terminate “earlier than August 31, 2011.” At the August 16, 2011 Board meeting, there is no mention of any SOE conversation in the meeting minutes, but the personal notes of Shawna Kedrowski noted, “SOE to be gone soon.” December 20, 2011, the personal notes again of Shawna Kedrowski note “Outdoor Experiences through end of Aug but gone now.” During this process, multiple board members remember being told by Chuck Herdegen that Simply Outdoor Experiences remains on our finances because they are part of the school year financials. This made sense. This Board trusted in its Executive Director who followed only part of its direction. Once this Board was aware that the Director had placed us in an unauthorized contract, steps were taken to dissolve the relationship. However, it is the opinion of our accountant that this relationship did not violate accounting principles on its face. The Director approved transactions that violated accounting principles. This was not caught by this Board. The relationship between Simply Outdoors Experience and STRIDE Academy was required to be terminated by August 31st, 2011. The Board did not authorize an extension to that relationship and was provided misinformation about the status of that relationship starting at the August 2011 Board meeting. Check number 4001 for Simply Outdoor Experiences was not brought to the Board for approval. The check was written out for $1,744.64. This violates a well established policy of STRIDE Academy that all checks over $1,000 be brought to the Board for approval (See STRIDE Academy Board Meeting Minutes February 22, 2005). The detailed finances of STRIDE Academy such as check register review had previously been left up to the finance committee. As of the July 2012 meeting, all check registers are required to be provided to all Board members for review. With full Board review of all check registers and management reports, we can catch such transactions immediately. The finance committee includes a member from our accounting firm, BKDA. Check number 4068 written to Dale is signed by Mr. Russell. Dale in turn deposited that check into STRIDE’s account as the check was intended for STRIDE Academy. There was a substantiated debit card purchase for the amount of $236.23. The purchase was $220 and tax was $16.23. Paperwork claims that tax was reimbursed on check number #4109. No explanation is available as to why Dale approved mileage transactions without proper paperwork and paid them out at different rates than the IRS rate. The mileage rate that was used for reimbursement was less than the applicable IRS rate. As previously stated, the Board entrusted the regular financial reviews to the finance committee. The Board has, even prior to the letter from FOE, started a much more intensive involvement in the daily financials of STRIDE. Every Board member will be e‐mailed a copy of all check registers by at least the Friday before the Board meeting (allowing almost one full week for review). The Board also has had several meetings in regards to finances, cutting costs, and policy revision. Additional resolution: The Board will perform its own monthly “proper documentation” audits. During each month’s financial portion of the meeting, a Board member not on the finance committee will request all documentation for random transactions for review. This process will continue at least for two years to clear up the “material weakness” listed on our audit. It is highly likely that due to the SOE relationship, we will experience another audit rating showing a “material weakness.” STRIDE Academy Multi Year Budget Projection Model August 15, 2012 Budgets Approved 6/19/2012 Revised Adopted Working Actual Actual Budget Budget Budget Budget Projections 2009 2010 2010 2011 2011 2012 2012 2013 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 Enrollment Projections Number Students Grade K 35.95 53.89 55 75 75 75 75 75 75 75 Number Students Grade K (Handicapped) 0.00 6.09 5 5 5 5 5 5 5 5 Number Students Grade 1 40.92 39.99 59 60 60 80 80 80 80 80 Number Students Grade 2 38.99 39.62 40 60 60 60 80 80 80 80 Number Students Grade 3 39.69 39.99 42 63 63 63 63 84 84 84 Number Students Grade 4 39.80 39.48 44 44 44 66 66 66 88 88 Number Students Grade 5 34.85 39.89 43 44 44 44 66 66 66 88 Number Students Grade 6 33.32 46.18 48 48 48 48 44 66 66 66 Number Students Grade 7 31.12 43 44 44 44 48 48 48 48 Number Students Grade 8 11.83 23 30 30 30 30 30 30 30 Enrollment totals by state pupil unit weighting category Total Number of Students Grade K 36 53.89 55 75 75 75 75 75 75 75 Number Students Grade K (Handicapped) 0 6.09 5 5 5 5 5 5 5 5 Total Number of Students Grades 1%3 120 119.60 141 183 183 203 223 244 244 244 Total Number of Students Grades 4%6 108 125.55 135 136 136 158 176 198 220 242 Total Number of Students Grades 7%12 0 42.95 66 74 74 74 78 78 78 78 Total Number of Students 263.52 348.08 402 473 473 515 557 600 622 644 Total Number of Current Year Pupil Units 269.80 361.34 424.78 495.31 495.31 540.93 587.51 634.24 657.56 680.88 Total Number of Marginal Cost Pupil Units 269.80 361.35 424.78 495.31 495.31 540.93 587.51 634.24 657.56 680.88 C. Herdegen 8/15/2012 Beltz, Kes, Darling and Associates Page 1 of 5 SA Budget Model by OBJ Working Copy.xlsx STRIDE Academy Multi Year Budget Projection Model August 15, 2012 Budgets Approved 6/19/2012 Revised Adopted Working Actual Actual Budget Budget Budget Budget Projections 2009 2010 2010 2011 2011 2012 2012 2013 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 State Revenue Assumptions and Calculation General Education Revenue State Averages Per Pupil Unit $5,124 $5,124 $5,174 $5,224 $5,224 $5,224 $5,224 $5,224 $5,224 $5,224 Inflation Rate Assumption % Basic only 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Basic Excluding Transportation $4,875.49 $4,875.49 $4,923.06 $4,970.64 $4,970.64 $4,970.64 $4,970.64 $4,970.64 $4,970.64 $4,970.64 Gifted and Talented 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 One%Time Additional Revenue 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Sparsity 24.65 25.02 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 Operating Capital 205.30 205.27 205.00 205.00 205.00 205.00 205.00 205.00 205.00 205.00 Training & Experience 0.71 0.41 0.40 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Equity 97.70 97.39 99.00 99.00 99.00 99.00 99.00 99.00 99.00 99.00 Transition 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Referendum 6.26 5.36 4.47 4.47 4.47 4.47 4.47 4.47 4.47 4.47 Transportation 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Per Pupil Unit State Revenue 5,222.11 5,220.94 5,268.93 5,316.11 5,316.11 5,316.11 5,316.11 5,316.11 5,316.11 5,316.11 Less Pension Adjustment (32.55) (32.68) (32.68) (32.68) (32.68) (32.68) (32.68) (32.68) (32.68) (32.68) Total Per Pupil Unit State Revenue 5,189.56 5,188.26 5,236.25 5,283.43 5,283.43 5,283.43 5,283.43 5,283.43 5,283.43 5,283.43 Total General Education State Revenue 1,400,161 1,874,776 2,224,229 2,616,907 2,616,907 2,857,937 3,104,039 3,350,960 3,474,170 3,597,379 Compensatory Revenue 0.3795 0.4318 0.4103 0.3255 0.3255 0.3255 0.3255 0.3255 0.3255 0.3255 A: 'Number of Students prior yr. (current year for 1st year) 249 264 351 404 404 473 515 557 600 622 B: Number of Free Lunch Students prior yr. (or current year for 1st yr.) 74 85 107 95 95 111 121 131 141 146 C: Number of Reduced Lunch Students prior yr. (current yr. For 1sr yr.) 41 58 74 73 73 85 93 101 108 112 D: Adjusted Counts = 100% Free, 50% Reduced (A) 94.50 114.00 144.00 131.50 131.50 153.96 167.63 181.30 195.30 202.46 E: Concentration Portion 0.3795 0.4318 0.4103 0.3255 0.3255 0.3255 0.3255 0.3255 0.3255 0.3255 F: Concentration Factor (lessor of 1 or Conc. portion/.8) 0.4744 0.5398 0.5213 0.4069 0.4069 0.4069 0.4069 0.4069 0.4069 0.4069 G: PU = .6 * D * F 26.90 36.92 45.04 32.10 32.10 37.58 40.92 44.26 47.68 49.42 H: Initial Revenue = $4,709 * G 126,664 173,858 212,095 151,168 151,168 176,986 192,702 208,417 224,507 232,739 I: Short Year Factor 1 1 1 1 1 1 1 1 1 1 rounding adjustment 8 (2) 3,586 3,586 Calculated Compensatory State Revenue ((A) x (B)) 126,672 173,856.28 212,095 154,754 154,754 176,986 192,702 208,417 224,507 232,739 Building Lease Aid Aid at $1,200 per pupil unit as per state cap 323,764 433,611 509,730 594,366 594,366 649,110 705,006 761,088 789,072 817,056 Aid at 90% of Lease 340,259 637,088 659,678 779,588 779,587 816,015 882,530 952,608 957,893 963,441 90% of lease payment % per pupil unit 1,261 1,763 1,553 1,574 1,574 1,509 1,502 1,502 1,457 1,415 Lessor of $1,020/p.u. or 90% of lease payment 323,764 433,611 509,730 594,366 594,366 649,110 705,006 761,088 789,072 817,056 Estimated Proration of Lease Aid Revenue 96.0% 96.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Total Prorated Building Lease Aid Revenue 310,813 416,267 509,730 594,366 594,366 649,110 705,006 761,088 789,072 817,056 Lease Aid Revenue per pupil unit (before proration) 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 Special Education Revenue State Special Education Aid 219,500 428,033 499,240 554,107 570,077 470,356 362,502 246,322 125,882 1,182 C. Herdegen 8/15/2012 Beltz, Kes, Darling and Associates Page 2 of 5 SA Budget Model by OBJ Working Copy.xlsx STRIDE Academy Multi Year Budget Projection Model August 15, 2012 Budgets Approved 6/19/2012 Revised Adopted Working Actual Actual Budget Budget Budget Budget Projections 2009 2010 2010 2011 2011 2012 2012 2013 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 Budget Projections Revenue Summary and Projections State Aids General Education Basic Revenue 1,400,161 1,874,776 2,224,229 2,616,907 2,616,907 2,857,937 3,104,039 3,350,960 3,474,170 3,597,379 General Education Revenue Reduction offset by Federal Stabilization (145,504) 0 0 0 0 0 0 0 0 0 Literacy Incentive Aid 0 40,000 40,000 40,000 40,000 40,000 40,000 40,000 Q Comp 61,045 65,620 63,263 70,563 70,563 85,405 95,625 105,844 110,954 116,307 Compensatory Revenue 126,672 173,856 212,095 154,754 154,754 176,986 192,702 208,417 224,507 232,739 General Education Revenue 1,442,374 2,114,252.12 2,499,587 2,882,223 2,882,223 3,160,329 3,432,366 3,705,222 3,849,631 3,986,425 Endowment Fund 5,207 11,091 11,091 11,091 11,091 11,091 11,091 11,091 Building Lease Aid 328,739 433,608 509,730 594,366 594,366 649,110 705,006 761,088 789,072 817,056 Special Education Aid 202,785 428,033 499,240 554,107 570,077 470,356 362,502 246,322 125,882 1,182 Targeted Services 35,680 54,682 55,000 64,714 64,714 70,460 76,206 82,090 85,100 88,109 Prior Year Under (Over) Accruals 2,085 11,462 (2,542) Total State Aids 2,011,663 3,042,037 3,566,222 4,106,501 4,122,471 4,361,346 4,587,171 4,805,812 4,860,775 4,903,863 Other Revenue Federal Title Programs 79,143 72,985 123,601 87,966 87,966 95,777 103,588 111,585 115,676 119,767 Federal Special Education Programs 53,701 97,889 106,978 91,588 91,588 99,721 107,854 116,180 120,440 124,700 Federal Education Jobs Fund Grant 57,449 14,108 Food Service Program Revenue 121,891 139,212 175,751 223,557 223,557 243,408 263,258 283,582 293,980 304,378 Community Services Program Revenues 34,973 104,334 115,371 139,275 139,275 154,675 170,635 187,484 198,245 209,362 Proceeds from Capital Equipment Loan 140,000 Fees from Patrons, Fundraising, Gifts, Misc 62,524 87,225 73,950 82,511 82,511 89,837 97,164 104,665 108,503 112,340 Transfers from Other Funds 32,090 0 0 Total Other Revenue 497,736 699,094 641,849 624,897 624,897 683,418 742,499 803,496 836,844 870,548 Total Revenues 2,509,399 3,741,131 4,208,071 4,731,399 4,747,368 5,044,763 5,329,670 5,609,307 5,697,619 5,774,411 C. Herdegen 8/15/2012 Beltz, Kes, Darling and Associates Page 3 of 5 SA Budget Model by OBJ Working Copy.xlsx STRIDE Academy Multi Year Budget Projection Model August 15, 2012 Budgets Approved 6/19/2012 Revised Adopted Working Actual Actual Budget Budget Budget Budget Projections 2009 2010 2010 2011 2011 2012 2012 2013 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 Expenditure Calculations Assumptions Additional Teaching Posidions 5.34 2 2 2 1 1 Cost per Teacher 35,500 36,000 36,500 37,000 37,500 38,000 Salary Cost for Staff Changes 149,271 72,000 73,000 74,000 37,500 38,000 Cost of Personnel Changes 142,564 123,937 149,271 72,000 73,000 74,000 37,500 38,000 Cost of Step Increases 20,500 0 0 0 0 0 0 0 Cost of Group Insurance Increases 26,500 26,500 29,150 32,065 35,272 38,799 42,679 Inflation Calculations Salaries & Benefits 1.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Other costs 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% Budget Calculations 100 Salaries (Includes Year End Merit Pay) 1,091,623 1,615,895 2,010,534 2,118,685 2,101,995 2,173,995 2,246,995 2,320,995 2,358,495 2,396,495 Return Incentive Pay cost 0 0 0 0 0 0 0 0 0 0 200 Benefits 249,706 428,775 517,456 570,330 573,436 622,228 675,187 732,695 783,332 838,632 303 Federal Contracted Servcies Sub Awards 1,340 4,348 4,348 4,829 5,327 5,853 6,189 6,536 305 Contracted Services 145,933 181,784 185,000 196,028 196,028 217,703 240,166 263,881 279,028 294,675 320 Communications Services 9,211 23,164 25,253 27,320 27,320 30,341 33,472 36,777 38,888 41,069 329 Postage 1,571 2,249 2,250 2,700 2,700 2,999 3,308 3,635 3,844 4,059 330 Utilities 33,159 58,113 60,000 72,009 72,009 79,971 88,223 96,934 102,498 108,246 340 Insurance 16,266 15,597 18,537 20,187 20,187 33,229 35,246 37,582 37,582 37,582 350 Repairs and Maintenance 15,407 17,295 15,000 10,000 10,000 11,106 12,252 13,462 14,234 15,033 360 Contracted Transportation 62,880 89,259 114,844 122,653 122,653 125,106 127,608 130,160 132,764 135,419 366 Travel, conferences and staff training 12,100 8,799 25,050 17,050 17,050 18,935 20,889 22,952 24,269 25,630 369 Entry Fees 119 195 2,800 3,360 3,360 3,732 4,117 4,524 4,783 5,051 Current Building Lease (including property taxes) 378,066 707,876 732,976 866,208 866,208 906,683 980,589 1,058,454 1,064,325 1,070,491 4,500 additional square feet at Middle School beginning in 2013 2014 Building Lease Costs 378,066 707,876 732,976 866,208 866,208 906,683 980,589 1,058,454 1,064,325 1,070,491 370 Other Rentals and Operating Leases 4,278 7,018 8,177 9,622 9,622 10,476 11,331 12,205 12,653 13,101 394 Other Spec Educ Student Service Fees 8,549 10,573 0 0 0 0 0 0 0 0 371 Physical Therapy Contracted Services 1,400 1,400 1,400 1,524 1,649 1,776 1,841 1,906 372 Occupational Therapy Contracted Services 4,465 4,465 4,465 4,861 5,258 5,664 5,872 6,079 378 Licensed School Psychologist Contracted Services 13,282 13,282 13,282 14,461 15,641 16,848 17,466 18,084 390 Education Services Purchased from Another School District 2,185 2,571 2,571 2,799 3,028 3,261 3,381 3,500 394 Other Contracted Services for Students 5,000 5,883 5,883 6,405 6,928 7,463 7,736 8,010 401 Suppllies % Non Instructional 35,796 56,003 59,846 53,646 53,646 58,409 63,173 68,050 70,545 73,040 430 Instructional Supplies 14,490 37,321 40,339 40,561 40,561 44,163 47,764 51,452 53,338 55,225 433 Individualized Instructional Supplies 3,768 2,900 2,900 3,158 3,415 3,679 3,814 3,948 460 Textbooks and Workbooks 5,000 145 11,136 15,139 15,139 16,483 17,827 19,204 19,908 20,612 461 Standardized Tests 0 3,113 3,113 3,113 3,389 3,666 3,949 4,094 4,238 470 Media Resources 306 0 1,370 1,400 1,400 1,524 1,649 1,776 1,841 1,906 490 Food 883 1,424 1,900 2,235 2,235 2,433 2,632 2,835 2,939 3,043 530 Equipment Purchased 1,970 7,270 1,500 17,019 17,019 18,530 20,041 21,588 22,380 23,172 555 Technology Equipment Purchased 2,375 2,668 16,012 7,124 7,124 7,757 8,389 9,037 9,368 9,699 730 Payments on Capital Equipment Loan 69,850 76,200 76,200 6,350 0 0 0 0 740 Interest on Cash Flow Borrowing and Capital Loan 0 23,271 28,608 33,661 33,661 36,650 39,638 42,699 44,264 45,830 820 Dues and memberships 17,668 42,274 40,392 46,874 46,874 51,036 55,198 59,460 61,640 63,820 895 Federal Indirect Costs Chargeback 511 511 511 556 602 648 672 696 899 Budget Contingency 0 0 0 0 0 0 0 0 910 Transfers to Other Funds 32,090 0 0 0 0 0 0 0 C. Herdegen 8/15/2012 Beltz, Kes, Darling and Associates Page 4 of 5 SA Budget Model by OBJ Working Copy.xlsx STRIDE Academy Multi Year Budget Projection Model August 15, 2012 Budgets Approved 6/19/2012 Revised Adopted Working Actual Actual Budget Budget Budget Budget Projections 2009 2010 2010 2011 2011 2012 2012 2013 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 Food Service Program Expenses 121,204 180,374 190,000 223,557 223,557 243,408 263,258 283,582 293,980 304,378 Community Service Program Expenses 45,997 117,636 135,542 139,275 139,275 154,675 170,635 187,484 198,245 209,362 Total Expenses 2,494,644 4,027,123 4,381,526 4,731,317 4,717,732 4,919,906 5,215,101 5,530,561 5,686,207 5,848,566 Total Expenditures 2,494,644 4,027,123 4,381,526 4,731,317 4,717,732 4,919,906 5,215,101 5,530,561 5,686,207 5,848,566 Annual Surplus (Deficit) 14,755 (285,992) (173,454) 82 29,636 124,857 114,569 78,747 11,412 (74,156) Beginning Fund Balance 599,404 614,159 328,167 154,713 154,713 184,349 309,206 423,775 502,522 513,934 Ending Fund Balance 614,159 328,167 154,713 154,795 184,349 309,206 423,775 502,522 513,934 439,779 Fund Balance Percentage of Annual Total Expenditures 24.6% 8.1% 3.5% 3.3% 3.9% 6.3% 8.1% 9.1% 9.0% 7.5% C. Herdegen 8/15/2012 Beltz, Kes, Darling and Associates Page 5 of 5 SA Budget Model by OBJ Working Copy.xlsx The Policy Committee will meet the fourth Monday of the month at the Elementary School at 3:15 pm in Room 113. Current members: Monica Schraut-Chair, Shawna Kedrowski, Rebecca Hull. Will ask for a non-board representative from north and south campuses as well as at least one parent. 2012-2013 Policy Review Schedule August* 410 - Family Medical Leave 413 - Harassment & Violence 418 - Drug-Free Workplace/Drug-Free School 506 - Student Discipline & Notice of Suspension 514 - Bullying annual notification/training to staff 524 - Internet Acceptable Use & Safety Policy 526 - Hazing Prohibition - to discuss w/ students & staff September 102 - Equal Education Opportunity 401 - Equal Employment Opportunity 402 - Disability Nondiscrimination Policy 522 - Student Sexual Nondiscrimination 612-1- Development of Parental Involvement Policies for Title I programs 709 - Student Transportation Safety Policy 533 - Wellness - posted on website October 214 - Out-of-Sate Travel by School Board Members 406 - Public & Private Personnel Date & Form 412 - Expense Reimbursement 501 - School Weapons Policy 516 - Student Medication (Invite School Nurse) 609 - Religion 801 - Equal Access to School Facilities November 515 - Protection and Privacy of Pupil records 521 - Student Disability Nondiscrimination 531 - Pledge of Allegiance 532 - Use of Police Officers and Crisis Teams to Remove Students 616 - School District System Accountability 806 - Crisis Management Policy 807 - Health & Safety Policy January 417 - Chemical Use & Abuse 501 - Scholl Weapons Policy 601 - School District Curriculum and Instruction Goals 603 - Curriculum Development March To be determined after looking at non-mandatory policies April To be determined after looking at non-mandatory policies May - review policies for fall handbooks 419 - Tobacco Free Environment 502 - Search of Student Lockers, Desks, Personal Possessions, and Student's Persons (handbook or other distribution) 504 - Student Dress & Appearance 506 - Student Discipline & Notice of Suspension 514 - Bullying Prohibition Policy 526 - Hazing Prohibition (also in staff handbook) 533 - Wellness (Director's report to School Board also Due) I will also ask Rodger to establish a place on our website for these to be placed so they will be accessible to any future policy review committee. *In the following year, the mandatory policies will only be reviewed once a year. During the school year of 2012-2013 we will review immediately in the fall to ensure that they are current and have board approval. Any changes will be sent to parents. Then we will always review the mandatory policies in the spring to ensure they are approved for the fall handbooks.