Common use of Financial Performance Framework Clause in Contracts

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 sharing of best practices to help ensure that all sponsored schools are supported to meet the financial goals outlined in the framework. Framework Structure