Financial Performance Framework. The annual negotiated Performance Framework includes three parts. One part is a Financial Framework. The Financial Framework looks at the financial viability of the School.
Financial Performance Framework. Is the School financially viable? The annual negotiated Performance Framework includes three parts. One part is a Financial Framework. The Financial Framework looks at the financial viability of the School.
Financial Performance Framework. The Financial Performance Framework (“Framework”) serves as a tool for the Commission to assess the financial health and viability of charter schools in its portfolio. The framework intends to provide a financial frame of reference based on current and past financial performance of charter schools. The indicators used in the framework are based on industry standard financial measures (e.g. ratios, variances) designed to be viewed in the aggregate with other complementary and supplementary information (e.g. timely and accurate financial and reporting practices, management practices). No single indicator or point in time data point gives a full picture of the financial situation of a school. Taken together, however, the indicators provide a qualitative assessment of the school’s near-term financial health, mid-term capacity, and long-term financial sustainability. Sustainability Indicators •Debt to Asset Ratio •Cash Flow •Total Margin Planning & Budgeting Indicator •Budget Variance Near-Term Indicators •Current Ratio •Unrestricted Days Cash Financial Performance Framework Financial Management & Oversight •Financial Reporting •Compliance •Annual Audit Report, Financial Review, and Related Management Letters
Financial Performance Framework. The purpose of the CMSD Financial Performance Framework is to measure and evaluate the financial health of all CMSD sponsored charter schools. The framework is an accountability tool that will be used on a monthly basis, as required by law, to guide discussions between CMSD and CMSD sponsored charter schools. The monthly meetings regarding the framework are not summative, but rather provide the basis for discussions. School ratings on the financial framework will be published annually and submitted to the school’s governing authority, parents, and the Ohio Department of Education, pursuant to section 0000-000-00 of the Ohio Administrative Code. CMSD will provide monthly written reports with feedback and proactive recommendations, as appropriate, that help the schools achieve greater efficiencies, or that result in timely interventions, if needed. Collecting this data is paramount to ensuring that each sponsored school maintains the public trust and its fiduciary responsibility by maintaining a quality school that spends public funds appropriately and adheres to the laws, rules, and charter requirements as governed by their respective boards. The measures in this framework are designed to be complementary; no single measure provides a full picture of the financial health of a school. Together, however, the measures provide a comprehensive assessment of the school’s financial health and viability based on a school’s historic trends, near-term financial situation, and future viability. It is important to note that if a school receives a “below standard” rating, it may or may not be in financial distress. The Financial Performance Framework is meant to flag any areas for further investigation. In the event an area is flagged, the Sponsor may request additional documentation from a school. The rating may be adjusted if sufficient evidence is provided. An example of additional information taken into consideration for rating purposes could be a long-term strategic partnership that acts as an additional funding source for the school. The Sponsor will provide schools with a preliminary report before ratings are published so as to give schools time to respond. Monthly Review Process To ensure execution of the aforementioned framework and compliance with Ohio Revised Code 33314.023, sponsored schools must agree to participate in a monthly review process to measure and review the financial and enrollment records. CMSD will work to encourage a culture of learning and s...
Financial Performance Framework. Is the School financially viable? The Authorizer shall establish general financial annual performance targets for its authorized schools in consultation with its charter school(s). The Parties shall then negotiate school-specific annual performance targets for the Financial Framework for each year this Contract is in effect. During the Annual Site Visit, in addition to reviewing the annual financial targets for the previous year, the Parties shall negotiate school-specific annual financial targets for the next year.
Financial Performance Framework. The Financial Performance Framework (“Framework”) serves as a tool for the Commission to assess the financial health and viability of charter schools in its portfolio. The framework intends to provide a financial frame of reference based on current and past financial performance of charter schools. The indicators used in the framework are based on industry standard financial measures (e.g. ratios, variances) designed to be viewed in the aggregate with other complementary and supplementary information (e.g. timely and accurate financial and reporting practices, management practices). No single indicator or point in time data point gives a full picture of the financial situation of a school. Taken together, however, the indicators provide a qualitative assessment of the school’s near-term financial health, mid-term capacity, and long-term financial sustainability. Sustainability Indicators •Debt to Asset Ratio •Cash Flow •Total Margin Planning & Budgeting Indicator •Budget Variance Near-Term Indicators •Current Ratio •Unrestricted Days Cash Financial Performance Framework Financial Management & Oversight •Financial Reporting •Compliance •Annual Audit Report, Financial Review, and Related Management Letters Risk-Based Approach The framework adopts a risk assessment model as part of ongoing oversight and monitoring of charter schools’ fiscal activities, and renewal decision-making. The model aligns the framework to the unique funding and governance environment for charter schools in the State of Hawai`i. This risk-based approach will help identify areas of strength and weakness, highlighting controls that are designed to mitigate risks. School(s) will be closely monitored if there is heightened risk of financial problems. Financial monitoring may include, but not limited to, request for reports or other documentation, inquiries through written or telephone communications, desk audits, or on-site visits, announced or otherwise. Moreover, a school may be requested to develop an appropriate corrective action plan in accordance with the Intervention Protocol (Exhibit D) to address any monitoring issues identified during the risk assessment. The corrective action plan provides a school an opportunity to explain the issue(s); identify measurable solution(s); identify person(s) who will be responsible for each solution; set timelines; and monitor the progress of the corrective action plan.
