Ohio Department of Education
Office of Community Schools

Guide for Funding and Financial Planning*

March 1999 

Table of Contents
 

Section I  Overview	Page
Introduction	2-3
Section II  Required Financial Plan Items
School Budget	3
Spending Plan	3-5
Enrollment Projection	5
Per Pupil Expenditure & Worksheets	6-10
Accountability	10
Section III  Fact Sheets & Useful Reference Material
Bus Transportation Fact Sheet	10
ESEA Title I Grant Fact Sheet	11-12
ESEA Title VI Fact Sheet	12-13
School Food Service Fact Sheet	13-15
Title IV Drug Free School Fact Sheet	15-16
References for Grants and Contributions	16-17
Auditor of State Bulletin 98-003	17-18
Community School Directory	18-20
USAS Object Codes	20-26
Charter Friends Guide	27
Section IV Financial Plan Samples
(Samples of these planning and budgeting forms may be obtained by writing the Academy)
Sample Five Year Budget	A-1
Sample Spending Plan	A-2
Financial Schedules	A-3
Basic Formula/DPIA Worksheet	A-4
Cost of Doing Business Factors	A-5

    *Disclaimer 

The Ohio Department of Education does not endorse the financial material presented in this guide or 
any organizations listed in this booklet. It is provided to assist you in your search for a suitable Financial Plan for your Community School. We are not responsible for the accuracy of any financial material presented in this guide. 

Overview: 

A Community School financial plan and its components are detailed here to guide you in developing a sound financing and budgeting plan to make sure public funds are used efficiently and effectively. The State Board of Education encourages you to utilize the services of a financial advisor in planning for the first year of operations, since careful fiscal planning is critical to the success of any new endeavor. Community schools are required to maintain their financial records in accordance with Generally Accepted Accounting Principles (GAAP). The concept of fund accounting under GAAP refers to maintaining accounting records of the school’s activities through the use of specific funds: 

     Governmental Funds, 
     General Funds, 
     Special Revenue Funds, 
     Capital Projects Fund, 
     Debt Service Funds, 
     Proprietary Funds, and 
     Fiduciary Funds. 

A community school with limited purpose may not need to use many of the above mentioned funds other than the General Fund. The basis of accounting for all these funds must be on a modified accrual basis. Under this method, revenues are recognized when they become both measurable and available, and expenditures are recognized at the point at which they are incurred. 

What is a financial Plan? 

A good financial plan should detail the costs involved in establishing a community school and give accurate projections about the school’s future economic condition. Developing a financial plan helps schools to convince prospective donor organizations that the school is financially viable and effectively and efficiently manages public and private funds. 

Basic Requirements: 

There are five components in the financial plan that a community school is required to submit the State Board of Education as part of their contractual agreement. These are: 

     A.  School Budget 
     B.  Spending Plan 
     C.  Enrollment Projection 
     D.  Per-pupil Expenditure 
     E.  Financial Accountability and Record Keeping 

Assumptions to the Financial Information: 

The governing authority of a community school should describe and disclose basic assumptions that it believes is significant to the budget and the overall financial condition of the school. 

Community Schools should:

•   State general assumptions about the operation of their instructional program in accordance
  
  with the adopted school calendar and the anticipation to meet all their financial obligations.
•   Describe all revenue and other financing sources.
•   Detail all anticipated expenditures and the basis for estimation and calculation. 

The major sources of revenue received by community schools will come from the following: 

Start-up Funds:

These are funds that are raised by the governing authority of the community school or the owners from different sources that may include but not limited to a) Personal funds, b) Grants, c) Funds raised from the community, and d) Start-up funds from the State available only to the community school pilot projects in Lucas County. [Now start-up funds are available to all start-up schools whose sponsors have approved their preliminary agreements.] Start-up funds are only useful for the first years of operation that the funds are actually used. 

Local Sources:

Enhancement Grants: These are local funds that may be provided by a sponsoring school board that wishes to provide financial assistance from local funds to a community school in their district on a contractual or voluntary basis, or may provide the community school specific services at no cost. 

Grants and Contributions: 

Grants and contributions are a common source of funding for community schools. The most common ones are grants and contributions from individuals and organizations that are interested or are advocates of your school’s mission. Please see references and grants information attached. 

State Sources: 

A per-pupil amount of funding based on the number of students in the community school will be provided by the State. The per-pupil revenue to a community school depends on the amount of money the district in which the student resides receives for its own students. 

Federal Sources: 

As a local educational agency, community schools are eligible for Title 1 reimbursement. Title 1 funds are a function of low income students in your school. Community school are also eligible for other federal categorical grants, such as those for special education and bilingual education. Contact the Federal Assistance division of the Ohio Department of Education for more information about eligibility. 

The community school budget statement is designed to keep financial reporting requirements at a minimum, while enabling compliance with monitoring standards and comparability to public school financial data collected through Ohio Department of Education’s Education Management Information System (EMIS). 

Financial Plan Components: 

    A. School Budget 

The governing authority of the community school as part of the application process is required to develop and present a three year annual school budget detailing all sources of revenues and expenditures based on the Uniform School Accounting System (USAS) methods of coding and chart of account structures. 

The governing authority should describe sources of funding for all start-up costs used in establishing the school and any other fund-raising efforts engaged to generate funding to supplement the anticipated per-pupil allocations. The governing authority should discuss its plan for regular review of school budgets during the fiscal year as circumstances change and actual figures become available. A generic three year school budget model is included in the financial plan section of the application packet. This is just a model budget for reference and each school is expected to develop a budget that meets its needs using the Uniform School Accounting System (USAS) manual as a guide. 

        Instructions for preparing the budget 

A three year (life of the contract) budget is required for all prospective community schools. The attached budget document shows a three year projection of revenues and expenditures for all funds and accounts. A majority portion of community schools may find this document usable in its exact format and utilize the category "other" for any specific source of revenue or expenditure not included in the generic budget. All amounts on this form are to be rounded to the nearest dollar, i.e., $15.50 would be rounded to $16 (not 16.00). 

Every blank would contain a figure. If there is a zero amount for a particular blank, a zero (-0-) should be entered. 

Whenever a negative or deficit amount occurs, indicate by enclosing the amounts in brackets, i.e., a negative or deficit of 15,294 would be shown as $(15,294). 

    B.  Spending Plan 

The governing authority of the community school should submit a detailed monthly spending plan for the first fiscal year for example (1999) specifying all the planned expenditures. Monthly spending plans for the subsequent fiscal years e.g. (2000-2001) remaining in the life of the contract should be submitted annually as it becomes feasible. A spending plan model is also included in the guideline.

        Instructions for preparing a Spending Plan 

The attached monthly spending plan is to be prepared and adopted by the governing authority of the community school. School officials must use the guidelines, coding system, and other information contained in the new " Uniform Accounting User Manual" (Revision 11) prescribed by the Bureau of Inspection and Supervision of Public Offices, of the State Auditor’s office. A copy of USAS manual will be provided for all schools by the State Auditor’s Office. Questions regarding the Accounting System may be referred to office of the Auditor of State by calling (614) 466-4717. Questions regarding the "Spending Plan" may be referred to the Community Schools Section of the Ohio Department of Education by calling 1-888-510-3941. All amounts on this form are to be rounded to the nearest dollar, i.e., $15.50 would be rounded to $16 (not 16.00). 

Every blank would contain a figure. If there is a zero amount for a particular field,   a zero (-0-) should be entered. 

Whenever a negative or deficit amount occurs, indicate by enclosing the amounts in brackets, i.e., a negative or deficit of 15,294 would be shown as $(15,294). 

The annual spending plan is to be adopted by the governing authority as a part of the annual appropriation measure. The horizontal sum of columns (1) through (12) must equal the amounts indicated for lines in the column (A) except for three lines: Beginning Cash Balance; Total Receipts including start-up funds (Line 15); and ending cash balance (line 26). In preparing the annual spending plan, the community school governing authority should present a true reflection of the estimated financial condition of the school for the fiscal year by showing budgeted receipts, expenditures and prior year encumbrances. 

The following items 1 through 26 are all recorded in Column (A) 

Line 1:  Enter the estimated amount of "start-up funds" available for the school. 
Line 2: Enter the estimated amount of "Enhancement Grants " received from your local school district
     board of education. 
Line 3: Enter the amount of revenues received through borrowing. 
Line 4: Enter the amount of revenues received from earnings on your investment. 
Line 5: Enter all other local sources of revenue. 

Information on items 6 through 11 can be obtained from the Ohio Department of Education.

Line 8:  Enter your Disadvantaged Pupil Impact Aid "DPIA" amount. 
Line 9: Enter your special education excess cost for the fiscal year. 
Line 10: Enter all other state revenues. 
Line 11:  Include Enhancement Grant in this block 
Line 12:  Other Federal grant money is hard to estimate at this point and we advise leaving it out of your
     budget at this time. 
Line 13& 14:  Transfers and other miscellaneous sources of revenue 
Line 15: Enter the total of beginning cash balance plus items 1 through 14. 
Line 16:  Enter the "Salaries" of the administrative staff not including teachers (Objects 100 through 199.
     Include Encumbrances from last year. 

(Encumbrance Method of Accounting: Under this system purchase orders, contracts, and other commitments for the expenditure of funds are recorded in order to reserve a portion of  the applicable appropriation). 

Line 17: Enter the "Fringe Benefits" of the administrative staff not including teachers (Objects 200 through 299.
     Include Encumbrances from last year. 
Line 18: Enter the "Salaries" of the teaching staff only (Objects 100 through 199. Include Encumbrances from
     last year. 
Line 19: Enter the "Fringe Benefits" of the teaching staff only (Objects 200 through 299. Include
     Encumbrances from last year. 
Line 20: Enter the estimated amount for "purchased Services" for the fiscal year. (Object codes 
     400-499). Include Encumbrances from last year. 
Line 21: Enter the estimated amount for "Materials, Supplies, and Textbooks" for the fiscal year. (Object 
     Codes 500-599). Include Encumbrances from last year.. 
Line 22: Enter the estimated amount for " Capital Outlay" (including replacements) for the fiscal year. 
     (Object Codes 600-799). Include Encumbrances from last year. 
Line 23: Enter the estimated cost for "Repayment of Borrowing (Principal + Interest)" for the fiscal year. 
     Include Principal + Interest. (Object Codes 812 and/or 813 for principal, and 822 and/or 813 for
     interest.) 
Line 24: Enter the estimated amount for "Transfers and advances out" for the fiscal year. (Object Codes
     910 and/or 920). 
Line 25: Enter the estimated amount for All "Other" general fund expenditures for the fiscal year. (Object
     Codes 800 through 899, except codes indicated for use on Line 19). (Object Code 930 should also 
     be included). 
Line 26: Enter the sum of lines 16 through 25, "Total Expenditures" for the fiscal year. 
Line 27: Enter Ending Cash Balance - Subtract Line 26 from Line 15 and enter difference. 
Line 28: Enter Encumbrances for the fiscal year. 
Line 29: Enter the unencumbered cash balance for the current fiscal year 

* Reference USAS Object Codes in Section III 

    C.  Enrollment Projection 

The governing authority of a community school should develop a student enrollment projection estimates for three years explaining the basis and rationale for the estimates. In addition, the governing authority of the community school should have a comprehensive recruiting and marketing plan to attract a sufficient pool of applicants to generate satisfactory funding levels. The rationale behind this is to be able to accurately estimate enrollments that can justify the establishment of the school and its viability to maintain administrative and instructional expenses. These data should be based on demographic information of the community from public agencies and local government offices so as to accurately predict enrollment figures. Many variables such as economic conditions affect population growth, migration and other indicators that are basis for the enrollment estimation. Information on these variables and indicators may be readily available at the local census bureau, chamber of commerce, department 
of health and other public agencies. 

* See enrollment projection worksheet on next page 

        Enrollment Projection Worksheet 

                                                                      FY:   2000     2001     2002     2003     2004 
    A)  Estimated  student enrollment              ____     ____     ____      ____    ____

    B)  Explain your recruiting and marketing plan to attract students _______________________________
____________________________________________________________________________________ 
_____________________________________________________________________________________
_____________________________________________________________________________________ 
_____________________________________________________________________________________ 
_____________________________________________________________________________________ 
_____________________________________________________________________________________ 
_____________________________________________________________________________________ 

    C)  Provide and explain justifications for your enrollment projections _____________________________ 
__________________________________________________________________________________ 
_____________________________________________________________________________________  __________________________________________________________________________________ 
_____________________________________________________________________________________  _____________________________________________________________________________________ 
_____________________________________________________________________________________ 
_____________________________________________________________________________________ 
_____________________________________________________________________________________ 

    D) Other relevant information ____________________________________________________________
_____________________________________________________________________________________  _____________________________________________________________________________________  _____________________________________________________________________________________ 
_____________________________________________________________________________________ 
_____________________________________________________________________________________ 
_____________________________________________________________________________________ 
_____________________________________________________________________________________ 

 * This worksheet may be as many pages as necessary to describe your plan. 
** Be sure to include with your Financial Plan Package. 

    D.  Per-Pupil Expenditure 

The governing authority of the community school should calculate on the attached worksheet an annual per-pupil expenditure using enrollment figures and basic formula amounts. The school may choose one of the options between total per-pupil expenditure amount on line C of the worksheet and the basic formula amount line G of the worksheet. A per-pupil expenditure worksheet shall be included in the financial plan. Attached page shows a calculation worksheet that allows schools to come up with a choice of two options: 

         i) Per-pupil expenditure, 
         ii) Base Formula amount. 

The two amounts may not always be similar and schools must choose the lower figure not exceeding the amount shown on G. 

Distribution of  Funds: 

Community Schools will receive their per-pupil or base formula amount payments directly from the State Treasurer through the Division of School Finance of the Ohio Department of Education. Payments are made monthly in roughly twelve equal installments. The enrollment reports in the beginning and the end of the school year may cause adjustments to be made that may either increase or decrease payments depending on the changes in the estimate and actual enrollment figures used in the calculation. 

Calculations for DPIA disbursements can be made when the following information is provided to the Ohio Department of Education: 

      1.  For the all day kindergarten amount, community schools should provide an estimate of the number of students enrolled in all day kindergarten.  This number would then be adjusted when the schools’ October count becomes available. 
      2. For the safety and security amount, community schools should provide the number of students eligible for family assistance.  The community school needs to send a list of their enrollees to Department of Human Services, who will verify the number of students who are eligible for family assistance. 
      3.  For the classroom size reduction amount, community schools should  provide the number of students in grades K through 3 who are not handicapped and who are eligible for family assistance. 

    Per-Pupil Expenditure Calculation Worksheet 

        A)  Total estimated expenditure for FY_______ (from Line 26 of the budget) $______________ 

        B)  Total estimated student enrollment (from Student Enrollment Projection Sheet) _________ 

        C)  Total Per-Pupil Expenditure  (A/B)    ________________ 

    Basic Formula Amount 

        D)  Maximum Foundation Amount for FY_2000___         $___4038______ 

        E)  Cost of Doing Business Factor* in ___________ district _______________ 

        F)  Basic Formula Amount ( D x E)  _______________ 

            Estimate % Eligible for DPIA for FY______________________ 
            Less: DPIA Reduction Factor _____%         (______0_______) 

        G)   Adjusted Base Formula _______________ 

Community School Selection (amount not greater than G ) $_______________ 

• A list of  Ohio community cost of doing business factor is provided on the next page. 

Year Computation Multiplier 

2000    12.4/7.5 
2001    13.8/7.5 
2002    15.2/7.5 
2003    16.6/7.5 
2004 and thereafter  18.0/7.5 

Calculation: 

        [ Cost of doing business factor - 1] x [Multiplier for the fiscal year of the calculation] + 1. 

Example: 

Community School A is located in Cuyahoga County and wants to calculate its Cost of doing 
business factor for fiscal year 2001. 

Calculation: 

 CODBF for Cuyahoga County Base Year = 1.0725 
 Multiplier for FY 2001  =  13.8/7.5 
 Formula:  [CODBF-1]*[Fiscal Year Multiplier] + 1 
     [1.0725-1]*[13.8/7.5] + 1 
     CODBF for FY 01 = 1.1334(Round to four decimal places) 

The following calculations in each category assume the student is enrolled as a full-time student.  If a student is enrolled for only part of a day, the calculation will be prorated appropriately. 

Maximum Foundation Amounts 

    Base Formula Amount:   FY 2000 = $4038 

        FY 2001 = $4226 
        FY 2002 = $4414* 
        FY 2003 = $4538* 
        FY 2004 = $4665* 

*Projected amounts, subject to change. 

      1. FORMULA AMOUNT PER PUPIL FY 2000: 

          a.  KINDERGARTEN STUDENTS: 

 $4,038 x .50 x Cost-of-Doing Business Factor of Student’s Residence 

    Calculation: 
        ________________   _______________________     ____________________ 
          Per pupil amount     x     Number of kindergartners    =  Total Formula Amount 

Per Pupil Amount for FY 2000 

    Kindergartners   

Note:  These per pupil amounts apply to both half-day and full day kindergarten programs. 

           b.  STUDENTS IN GRADES 1-12: 

$4,038 x Cost-of-Doing Business Factor of Student’s District of Residence. 

    Calculation: 

         _____________  x ____________________________  =  __________________ 
        Per pupil amount  x  Number of students in grades 1-12  =   Total Formula Amount 

Per Pupil Amount for FY 2000 

    Students in Grades 1-12   

     2. DPIA AMOUNT PER PUPIL: 

Note: The community school is eligible for DPIA if the student’s district of residence receives DPIA funding from the state. 

        a.  KINDERGARTEN STUDENTS ONLY: 

ALL DAY KINDERGARTEN AMOUNT 

Per Pupil Amount for All Day Kindergarten = $4038 x .50 = $2,019 

    Calculation: 

         ____________     ______     _________________________________ 
          Total Amount     = $2,019   x     Number of All Day Kindergarteners 

NOTE:  This amount is available only for students from school districts with a 
DPIA index equal or greater than 1.0 and is not available for half-day kindergarten students. 

       b. STUDENTS IN GRADES K-12:  SAFETY/SECURITY AMOUNT 

           (1) If the DPIA index of student’s district of residence is 1.0 or greater: 

    Calculation: 
         ____     __________     _________________________  =  __________________ 
        $230   x  DPIA Index     x     Number of Students Eligible     =     Total Safety/Security 
                                                             for Family Assistance 
Est. DPIA Index:  

           (2) If DPIA index of student’s district of residence is less than 1.0 but  equal or greater than .35: 

     Calculation: 

              $230   x   ___________________________   =   _____________________ 
              $230   x         Number of Students Eligible         =       Total Safety/Security 
                                   for Family Assistance 

        c.  STUDENTS IN GRADES K-3 ONLY: 

CLASSROOM SIZE REDUCTION AMOUNT 

    Calculation: 

        Per Pupil Amount x K-Grade 3 Nonhandicapped = Total Classroom Size 

Note: Kindergarten students are counted as .5 if they are enrolled in a half-day program and as 1.0 if enrolled in an all day program. 

                                   Est. Amount/# Students   Per Pupil Amount   

        3. SPECIAL EDUCATION EXCESS COSTS AMOUNTS 

These amounts will vary according to the county of residence of the student. Once a student is identified as a special education student and the Department of Education is notified, then the excess cost payment can begin. 

     E.  Financial Records and Accountability 

The governing authority of a community school should develop a comprehensive accounting system for record keeping and maintaining a system of internal financial controls. The community school should have a detailed plan for disposition of equipment, materials, supplies, and facilities. This plan must include an inventory system that maintains a list of all the fixed assets in the school. 

The plan should also describe accounting procedures used by the community school such as use of Generally Accepted Accounting Procedures (GAAP). If accounting services are contracted, a detailed outline must be included in the application that describes the techniques and procedures used by the service provider. 

Bus Transportation – OAC Section 3314.09 

The Board of Education of the city, local, or exempted village school district in which a community school is located shall provide transportation to students enrolled in the community school, except that board shall be required to pick up and drop off a non-handicapped student only at a regular school bus stop designated in accordance with the boards transportation policy. 

For more information on transportation, contact Ohio Department of Education, Community Schools office at 1-888-510-3941. 

Letter to public school district superintendents requesting school transportation service for the new community school in the district. 

Dear  Superintendent, 

As you are aware, the ___________ community school intends to commence operations in your district this next September.  The school intends to enroll ______ students in grades _____
through _____, and grow to grades _____ to _____ over the next _____ years. 

This letter is to remind you of the ______ City School Districts obligation to provide transportation
for these students per Ohio Revised Code 3314.09 which is quoted below. 

The Board of Education of the city, local, or exempted village school district in which a community school is located shall provide transportation to students enrolled in the community school, except
that the board shall be required to pick up and drop off a non-handicapped student only at regular school bus stops designated in accordance with the boards transportation policy. It is our sincere hope that the ________ City School District and the ________ Community School can develop a transportation plan that meets the students needs.  We have asked that _______ point of contact name ________ of the _______ Community School contact your transportation coordinator and provide the names and addresses of all enrolled students. 

If you have questions, please contact Ohio Department of Education, Attention Steven Burigana
via telephone at 888.510.3941 or via e-mail at [ae_community@ode.ohio.gov]. 

Federal Programs 

PROGRAM DESCRIPTION / INTENT 

Title I is authorized by the Elementary and Secondary Education Act, and funds are allocated to the states on a formula basis and are non-competitive. Title I provides a federally funded compensatory program to improve the educational performance of low-achieving children in high-poverty schools. The legislation directs that priority education needs of these children be identified and programs be designed to provide appropriate supplemental instruction. Funds are allocated to provide supplemental instruction in basic and advanced skills such as reading, writing, and mathematics in qualifying public and nonpublic schools. Programs may take place before, during, or after school, on Saturdays and in the summer. Instruction must be coordinated among title I and classroom teachers, and parents must be involved in the planning and implementation of Title I programs, Professional development is also a part of the program. 

The intent of the program is to enable schools to provide opportunities for children served to acquire the knowledge and skills contained in the challenging state content standards and to meet the challenging state performance standards developed for all children. The evaluation of the progress in achievement of students served by Title I uses the same student performance standards used to evaluate the progress of all students using statewide assessments including proficiency and competency-based (CBE) tests. 

ELIGIBILITY CRITERIA 

A Local Educational Agency (LEA) is eligible to receive Title I funds if there are a least ten (10) children from low-income families and the number of these children make up more than two (2) percent of the LEA’s population. An LEA should contact the Division of Child Nutrition Services 614.466.2945 to secure information related to free and reduced-price meal benefits and income eligibility guidelines. If free and reduced-price meals are not available in an LEA, a family low-income survey may be used. Income eligibility guidelines on such surveys will follow the free and reduced price meal guidelines. 

The Division of Federal Assistance, after receiving verification of an LEA’s eligibility to receive funds, will provide an allocation and application to the LEA.  In order to provide an allocation, Federal Assistance will need to know the following: 

    1) LEA total enrollment; 
    2) number of low-income students; and 
    3) LEA and school building last attended for each low-income child. (Example: Dayton City -- McGuffey 
        Elementary -- 14 children. Although 30 children may have enrolled in the community school, only 14 
        have been identified as low-income.) 

Student names are not submitted with the above information. The information is necessary in order to reduce the allocation of the LEA whose children have enrolled in the community school. Documentation of an LEA’s eligibility and the information requested above are kept on file in the LEA for review purposes. 

Community schools will receive access to the Consolidated Local Plan through which they will be able to apply for funds from Titles I, II, IV, and VI. Applications are due July 1 of each  year. Due to this being the first year for the operation of community schools, a flexible schedule will be in place. 

Once a community school is eligible to receive funds, a consultant for the Division of Federal Assistance will be assigned to work with the school concerning Title I and Title VI applications, budget revisions, and other program activities. Until that time, Joe Armentrout, Consultant, Division of Federal Assistance should be contacted at 614.466.4161 for information 

POLICY ISSUES 

Community schools must be approved to operate by September 1, 1998 and must be operational by January 1, 1999 to receive Title I funds. This provides a window of opportunity for such schools to secure federal funds and put programs in place for a majority of the school year. Public LEAs, that may have their allocations reduced to provide funds for community schools, must be given the courtesy of a deadline beyond which they will be able to manage their funds with fear of further reductions. 

PROGRAM DESCRIPTION / INTENT

Title VI is authorized by the elementary and Secondary Education Act, and funds are allocated to these states on a formula basis and are non-competitive. Title VI provides funds to local school district (LEAs) in the state to plan, design, and implement creative programs within the eight Innovative Assistance Programs designated in the legislation. The programs include technology; the acquisition and use of instruction and education materials, including library services; education reform projects; the improvement of higher order thinking skills of disadvantaged elementary and secondary school students and to prevent students from dropping out of school; the prevention of illiteracy in the student and adult population, including parent illiteracy; meeting the educational needs of gifted and talented children; school reform activities consistent with the Goals 2000:Educate America Act; and Title I programs and activities. 

The intent of the program is to utilize Title VI funds in conjunction with state and federal funds to enhance local reform efforts. The evaluation of programs provided through Title VI is established by the local school or school district to measure the unique nature of each innovative project approved in the LEA’s application. 

ELIGIBILITY CRITERIA 

Public and nonpublic LEAs, joint vocational schools, county boards of mental retardation /
developmental disabilities, state institutions, and special purpose schools are eligible to receive Title VI funds. 

The Division of Federal Assistance, after receiving verification of an LEAs eligibility to receive funds, (charter approved for operation) will provide an allocation and application to the LEA. In order to provide an allocation, Federal Assistance will need to know the following: 

    1) applicant’s total enrollment; 
    2) number of low-income students; and 
    3) LEA and school building last attended for each low income child. (Example Dayton City -- McGuffey 
        Elementary -- 14 children. Although 30 children may have enrolled in the community school, only 14 
        have been identified as low income.) 

Student names are not submitted with the above information. The information is necessary in order to reduce the allocation of LEA whose children have enrolled in the community school. Documentation of an LEA’s eligibility and the information requested above are kept on file in the LEA for review purposes. 

Community schools will receive access to the Consolidated Local Plan through which they will be able to apply for funds from Titles I, II, IV, and VI. Applications are due July 1 of each year. Due to this being the first year for the operation of community schools, a flexible schedule will be in place. 

Once a community school is eligible to receive funds, a consultant for the Division of Federal Assistance will be assigned to work with the school concerning Title I and Title VI applications, budget revisions, and other program activities. Until that time, Joe Armentrout, Consultant, Division of Federal Assistance should be contacted at 614.466.4161 for information. 

POLICY ISSUES 

Community schools must be approved to operate by September 1, 1998 and must be operational by January 1, 1999 to receive Title VI funds. This provides a window of opportunity for such schools to secure federal funds and put programs in place for a majority of the school year. Public LEAs, that may have their allocations reduced to provide funds for community schools, must be given the courtesy of a deadline beyond which they will be able to manage their funds without fear of further reductions.

Welcome to Ohio’s Child Nutrition Programs. The Ohio Department of Education, Division of School Food Service, in partnership with the United States Department of Agriculture, administers the National School Lunch, School Breakfast, Special Milk and Government Donated Food Programs. 

Nationally, over 25 million children in over 90 thousand schools participate in these child nutrition programs, making them one of the country’s largest food service operations. Ohio’s food service programs serve over 1 million meals daily at over 4,000 sites. 

THE GOALS OF THE CHILD NUTRITION PROGRAMS ARE TO: 

•   Safeguard the health and well-being of this nation’s children
•   Encourage domestic consumption of nutritious agricultural foods
•   Give children an understanding of the relationship between proper eating habits and good health.

•   Any school of high school grade or under recognized by the State of Ohio as operating under
  
  public or nonprofit private ownership
•   Any public or nonprofit classes of preprimary grades when conducted in the aforementioned
  
  schools
•   Any public or nonprofit private licensed Residential Child Care Institution (RCCI)

Any child under age 21 who is enrolled in a school or RCCI that participates in the National School Lunch Program, the School Breakfast Program, or the Special Milk Program can participate. 

Additional benefits may be available to a child when his or her guardian submits an income eligibility application to the school.  Based on the household’s size and income, the child may be eligible for meals free or at a reduced price. 

WHAT ARE THE MEAL SERVICE REQUIREMENTS? 

To be eligible for cash reimbursement and government donated food, participating schools must prepare and serve meals that are planned to meet the meal pattern requirements. The reimbursable meal must be priced as a unit and be made available to all children regardless of their ability to pay. Following are the required meal patterns: 

LUNCH: Meal service must be between 10 AM - 2 PM 

       2 oz meat or meat alternate 
       ¾ cup of 2 offerings of fruit and/or vegetable 
       1 serving of bread (1 oz) at least 8 servings per week 
       8 oz of fluid milk: lowfat plain and whole milk must be offered 

BREAKFAST: 8 oz fluid milk

       4 oz (1/2 cup) fruit or vegetable or full-strength fruit or vegetable juice 
               AND 
       2 bread servings 1 oz each or 
       2 meat or meat alternate servings 1 oz each or 
       1 bread serving and 1 meat or meat alternate serving 

There are guidelines to adjust serving sizes to meet the needs of different age groups. 

WHAT REIMBURSEMENT WILL THE SCHOOL RECEIVE? 

Each complete meal (i.e., breakfast or lunch) served to an eligible child is reimbursed based on that child’s income eligibility. The three levels of cash reimbursement are for paid full-price, reduced-price and free.  In addition, a government donated food entitlement is earned for each lunch served. The government donated food is allocated monthly based on the preceding year’s entitlement. 

WHAT RECORDS MUST BE KEPT? 

Following are required records, these must be kept for the past three years in addition to the current school year: 

•   Menus and production of records 
•   Daily meal count and receipt worksheets 
•   Income eligibility applications for free and reduced meals 
•   Monthly inventories of purchased foods, donated foods and supplies 
•   Monthly participation and cost reports 
•   Verification records 
•   Record of Accuclaim on-site reviews 

Ohio Department of Education 
Standards & Evaluations - Community Schools 
25 South Front Street, Room 408 
Columbus, OH  43215-4183 
1.888.510.3941 

Outlined below is the process to follow for participation in the national School Lunch Program, the School Breakfast Program, and Government Donated Food Program. By federal and state standards, the school year begins on July 1 and ends on June 30; however, participation can begin or end at any time during the school year. 

STEP 1:  ANNUALLY 

Read the Permanent Agreement and retain it in your file 

•   To understand the responsibilities of the School Food Authority (SFA) 
•   To understand the responsibilities of the State Agency 
•   To understand the partnership between the School Food Authority and the State Agency 

Read the instructions to complete the "CN-A Application" and "CN-A Supplement." Send the completed application to the Ohio Department of Education, Division of School Food Service, for approval. 

STEP 3:  NEW PROGRAM SCHOOLS 

Contact the Ohio Department of Education, Division of School Food Service, to arrange for a meeting with a regional consultant. The consultant will: 

•   Give an overview of program benefits and responsibilities 
•   Offer assistance, answer questions, and make recommendations as needed 
•   Provide detailed information and comprehensive guidance materials 
•   Help evaluate the food service area 
•   Assure that there are proper licenses and that storage and equipment are adequate for 
  preparation and serving 

Read the instructions to complete the "Policy Statement Attachments." The "Policy Statement Attachments" will: 

• Identify general policies that must be followed to provide free and reduced-price benefits to
  
eligible children 
• Require each SFA to identify the approving, verification, hearing, and reimbursement claims
  
officials. 
• Require each SFA to submit sample form letters for approval. 
• Please send them to the Ohio department of education, division of school food service, for approval before printing or distributing any material.

Read the instructions to complete "Form CN-3-Beginning and Change Report" for each feeding and/or reporting site. Complete it and return to the Ohio Department of Education, Division of School Food Service. 

•   Use the same form throughout the year to report changes

    LUNCH 

•   Count all lunches at the point of meal service by category: paid full price, reduced-price, or free.
•   Record daily lunch counts and receipts on "Form CN-7" - "School Lunch and Milk Program
  
  Daily Worksheet."
•   Deposit receipts daily.
•   Record receipts the day they are collected. Record lunches the day they are served.

•   Follow the process listed above to complete "Form CN-6" - School Breakfast Program Daily
  
  Worksheet"

    Monthly Reporting 

Take a physical inventory of all purchased foods, government donated food, and nonfood supplies on the last day of the month. 

•   Complete "Form CN-1" for each feeding and or reporting site
•   Complete "Form CN-2" and "CN-8" for each onsite and base site.
•   Complete "Form CN-4" for each breakfast site.

Retain in the School Food Authority’s files the following records for the past three years in addition to 
the current school year: 

•   "CN_A Application" and "CN-A Supplement"
•   Permanent Agreement
•   "Policy Statement Attachments"
•   Menus and production records
•   Daily meal count and receipt worksheets
•   Income eligibility applications for free and reduced meals
•   Monthly inventories of purchased foods, donated foods, and supplies
•   Monthly participation and cost reports
•   Verification records
•   Record of Accuclaim on-site reviews

PROGRAM DESCRIPTION / INTENT 

Title IV is authorized by the Improving America’s Schools Act of 1994 which is a reauthorization of the Elementary and Secondary Education Act. Funds are allocated to the states on a formula basis and are non-competitive. 

It is the purpose of the Safe and Drug-Free Schools and Communities Act (SDFSCA) to support programs to meet the seventh national Education Goal by preventing violence in and around schools and by strengthening programs that prevent the illegal use of alcohol, tobacco, and other drugs, involve parents, and are coordinated with related Federal, State, and community efforts and resources. 

ELIGIBILITY CRITERIA 

Each Local Educational Agency (LEA) may apply for funds through the Safe and Drug-Free Schools and Communities Act. 

APPLICATION & ALLOCATION PROCEDURES / DEADLINES 

Seventy percent of the total allocation awarded to LEAs is based on average daily membership (ADM), public plus nonpublic. Thirty percent of the funds distributed to LEAs are allocated to 10% of the districts determined to have the greatest need for additional funds to carry out violence, alcohol, and other drug prevention programs. 

Categories of authorized activities for the use of SDFSCA funds are the following: 

•   curriculum development and acquisition
•   teacher and staff training
•   student instruction
•   drug-free activities for students
•   student assistance programs (including prevention and intervention counseling, identification 
  and referral, alternative educational services and support groups)
•   before-and-after school programs
•   special events (Red Ribbon week, special assemblies, etc.)
•   parent and community education and involvement
•   security
•   evaluation

Community Schools will receive access to the Consolidated Local Plan through which they will be able to apply for funds from Titles I, II, IV, and VI. Applications are due July 1 of each year. Due to this being the first year for the operation of community schools, a flexible schedule will be in place. For further information call 614.466.2471. 

Listed are a number of publications that you might find useful in your search for grants from national organizations.

•   The Board Member’s Guide to Fund Raising: What Every Trustee Needs to Know About
  
  Raising Money, by Fisher Howe (Jossey-Bass, 1991): Highlights the role of trustees in
  successful fund raising programs.
•   The Foundation Directory of Corporate Giving (The Foundation Center, 1997): Offers information
  
  on corporate philanthropic programs.
•   Grant Guide for Elementary and Secondary Education (The Foundation Center, 1997): Lists 
  grants to elementary and secondary schools for academic programs, scholarships, counseling,
  educational testing, drop-out prevention, teacher training and education, salary support, student
  activities, and school libraries.
•   National Guide to Funding for Children, Youth, and Families (the Foundation Center, 1997):
  
  Offer information on foundations and corporate programs that have awarded grant dollars to
  projects and institutions related to children, youths, and families.
•   National Guide to Funding for Elementary and Secondary Education (The Foundation Center,
  
  1997): Offers information on foundations and corporate programs that have awarded grant 
  dollars to projects related to elementary and secondary education.

•   Adult Basic Literacy Education
•   Title I (Chapter 1
•    Migrant Education
•   Education of all Handicapped
•   Special Education Personnel Development
•   National Diffusion Network
•   Project Life
•   Handicapped Preschool
•   Drug Free Schools
•   Christa McAuliffe 
•   Homeless Children and Youth
•   Javits Gifted and Talented Schools
•   Even Start
•   Comprehensive Arts Education
•   Capital Expenses
•   Program Improvement
•   Foreign Language
•   State Literacy Resource Centers
•   Goals 2000
•   Goals Technology
•   Eisenhower, IASA Title II
•   Innovative Programs, IASA Title VI
•   Dependent Care
•   Intergenerational Initiative
•   Learn and Serve America
•   Licensing of Childcare

Ohio Department of Education 
Office of Grants Management 
933 High Street, Suite 250 
Worthington, Ohio 43085-4017 
Telephone 614.752.1483 

Auditor of State Bulletin, Bulletin 98-003, August 13, 1998 

    Subject:  Accounting and Reporting for Community Schools 

Authority for the establishment of Community Schools was provided for under Chapter 3314., ORC, HB 215, effective until 7-1-98 and SB 55, effective 7-1-98. This bulletin provides guidance for the financial accounting and reporting for such community schools . 

With certain exceptions which are discussed in this bulletin, a community school with an approved contract is to account for and report its financial transactions in the same manner as all Ohio school districts. Community schools should notify the Auditor of State’s office of their existence at the beginning of the first fiscal year in which they commence operations. Notification should be sent to: 

State Auditor’s Office 
Clerk of the Bureau 
88 E. Broad Street 
PO Box 1140 
Columbus, OH 43216-1140 

The governing authority, fiscal agent or sponsor should obtain an "information retrieval number" (IRN) for the community school district established by an approved plan. IRN’s should be obtained from the Ohio Department of Education by writing, or e-mail at Ohio Department of Education Information Management Service, 1320 Arthur E. Adams Drive, Columbus, OH 43221-3595. E-Mail: IMS_Stein@ode.ohio.gov 

The Community School district should use the Uniform School Accounting System (USAS) and the Education Management Information System (EMIS) chart of accounts. The treasurer of the community school district or the fiscal agent should use, at a minimum, the required USAS/EMIS dimensions and codes to record the financial transactions of the community school district. 

The fiscal year of each community school district should begin July 1 and end June 30. The financial activity of each community school district should be reported in accordance with Generally Accepted Accounting Principles (GAAP) and within 150 days from the close of the fiscal year submitted to the State Auditor’s Office, Local Government Services Division. 

Community school districts are not mandated to budget, appropriate, encumber, use purchase orders or obtain the fiscal officer’s certification for expenditures. It is strongly recommended, however, that community school districts implement all of these procedures and establish appropriate internal controls. Community school districts should have budgets, (both revenues and expenditures) approved by their governing authority as well as financial plans submitted to and approved by the sponsor. 

In order for each community school to be accounted for as a separate school district, the community school must have a complete set of distinguishable financial records including but not limited to: 

•   Its own checking and other bank accounts (possibly separate banks)
•   Its own federal and state tax identification numbers
•   Its own checks and other financial documents such as purchase orders
•   Separate data processing runs will be or may be necessary to keep track of each community
  
  school separately. (For example, the fiscal agent may run payroll checks for his/her school
  district; then stop and switch checks, this time loading those belonging to community school 
  A; then run payroll for community school A; then switch from community school A to 
  community school B; then run and so forth.)
•   Its own reconciliation’s and controls totals
•   General Ledger
•   Cash receipts records
•   Cash disbursements records
•   Fixed asset records
•   Other records necessary to enable the school to prepare an annual report that conforms to GAAP  
  (Generally Accepted Accounting Principals)

If you have any questions, please contact (800) 345-2519 for the Local Government Services Division or 800.282.0370 for the Audit Division of the Auditor of State. 

Codes          DESCRIPTOR 

100 PERSONAL SERVICES -- EMPLOYEES SALARIES AND WAGES 

  110 CERTIFICATED EMPLOYEES SALARIES AND WAGES 

  120 CERTIFICATED LEAVE BENEFITS * 

  130 CERTIFICATED OTHER COMPENSATION * 

  140 NON-CERTIFICATED SALARIES AND WAGES 

  150 NON-CERTIFICATED LEAVE BENEFITS * 

    * denotes a required level of coding 

    155 Professional Leave 
    156 Military Leave 
    157 Jury Duty 
    159 Other Non-Certificated Leave 

  160 NON-CERTIFICATED OTHER COMPENSATION 

  170 OTHER WAGES AND SALARIES * 

  190 OTHER PERSONAL SERVICES * 

200 EMPLOYEES’ RETIREMENT AND INSURANCE BENEFITS 

  210 RETIREMENT -- CERTIFICATED * 

  220 RETIREMENT -- NON-CERTIFICATED * 

  230  EMPLOYEE REIMBURSEMENTS AND OTHER FRINGE BENEFITS * 

  240  INSURANCE BENEFITS -- CERTIFCATED EMPLOYEES * 

  250  INSURANCE BENEFITS -- NON-CERTIFICATED EMPLOYEES * 

  260  INSURANCE -- WORKER’S COMPENSATION AND DISABLED WORKER’S RELIEF * 

  270  DEFERRED COMPENSATION * 

    * denotes a required level of coding 

    272 Deferred Compensation -- Non-Certificated Employees 
    273 Annuities - Certificated Employees 
    274 Annuities - Non-Certificated Employees 
    279 Other Deferred Compensation 

  280  INSURANCE -- UNEMPLOYMENT COMPENSATION * 

  290  OTHER RETIREMENT AND INSURANCE BENEFITS * 

  300 NOT USED AT THIS TIME 

400  PURCHASED SERVICES 

  410  PROFESSIONAL AND TECHNICAL SERVICES * 

  420  PROPERTY SERVICES (OTHER THAN UTILITIES) * 

  430  TRAVEL MILEAGE/MEETING EXPENSE * 

  440  COMMUNICATIONS * 

  450  UTILITIES SERVICES 

    * denotes a required level of coding 

    459 Other Utilities Services * 

  460  CONTRACTED CRAFT OR TRADE SERVICES * 

  470  TUITION * 

  480  PUPIL TRANSPORTATION * 

  490  OTHER PURCHASED SERVICES * 

500  SUPPLIES AND MATERIALS 

  510  GENERAL SUPPLIES * 

  520  TEXTBOOKS * 

  530  LIBRARY BOOKS * 

  540  NEWSPAPERS, PERIODCALS, FILMS AND FILMSTRIPS * 

  550  SUPPLIES AND MATERIALS FOR RESALE * 

    * denotes a required level of coding 

    552 Workbooks for Resale 
    553 Textbooks for Resale 
    559 Other Items for Resale 

  560  FOOD AND RELATED SUPPLIES AND MATERIALS * 

  570  SUPPLIES AND MATERIALS FOR OPERATION, MAINTENANCE AND REPAIR * 

  580  SUPPLIES AND MATERIALS FOR OPERATION AND REPAIR OF MOTOR VEHICLES* 

  590  OTHER SUPPLIES AND MATERIALS * 

600  CAPITAL OUTLAY 

  610  LAND *
  620  BUILDINGS *
  630  IMPROVEMENTS OTHER THAN BUILDINGS *
  640  EQUIPMENT *
  650  VEHICLES *
  660  SCHOOL BUSES *
  670  LIBRARY BOOKS *
  680  LIVESTOCK *
  690  OTHER CAPITAL OUTLAY * 

700  CAPITAL OUTLAY -- REPLACEMENT 

  710  REPLACEMENT LAND *
  720  REPLACEMENT BUILDINGS *
  730  REPLACEMENT IMPROVEMENTS OTHER THAN BUILDINGS *
  740  REPLACEMENT EQUIPMENT * 
  750  REPLACEMENT VEHICLES * 

    * denotes a required level of coding 

  760  REPLACEMENT SCHOOL BUSES * 

  790  OTHER CAPITAL OUTLAY -- REPLACEMENT * 

800  OTHER OBJECTS 

  810  REDEMPTION OF PRINCIPAL 

  820  INTEREST 

  830  OTHER DEBT SERVICE PAYMENTS * 

  840  DUES AND FEES * 

  850  INSURANCE * 

  860  JUDGMENTS * 

  870  TAXES AND ASSESSMENTS * 

  880  AWARDS AND PRIZES *

  890  OTHER MISCELLANEOUS EXPENDITURES * 

900  OTHER USES OF FUNDS 

    * denotes a required level of coding 

  910  TRANSFERS * 

  920  ADVANCES * 

  930  REFUND OF PRIOR YEAR RECEIPT * 

  940  GRANT PAYMENTS TO OTHER DISTRICTS/ORGANIZATIONS/INDIVIDUALS 

    *denotes a required level of coding 

Charter Friends Network works with charter (Community Schools in Ohio) school developers nationwide. 

To review their Financial Planning Guide, go to  http://www.csus.edu/ier/charter/bizpl.html. This guide may be sued by charter operators in develping a business plan to be used as a management toool in the operaion of indivudal schools as well as preparing applications for charters, seeking renewals, and applying for grants and loans. 

The guide was develped in consulatiaon with both lenders and funders and draws heavily on the experience and previously published resource guides developed by two of the nation’s leading experts on charter school financing and operations: 

      Eric Prmack, director fo the California Charter School Develpement Center and 
      Linda Brown, Director fo the Massachusetts Charter School Resource Center 

Individual copies of the Financial Planning Guide are available to current and prospective school operators at no charge and may be ordered by calling the Friends Network office at 612.644.5270 or via e-mail at info@charterfriends.org. 

In Ohio you may call Clint F. Sataw, The Ohio Charter Schools Association at 614.224.2647 or toll free at 1.877.school-8  

You may also review the guide via the internet at the above web address. 

Common Questions 

     1.  Have you worked in  a school and/or educational setting similar to the one you want to start? 

     2.  Have you had any business and/or education training in school? 

     3.  Do you know how much money you will need to get the school started? 

     4.  Have you decided on a marketing plan? 

     5.  Have you talked with other school developers/operators about what they think of the school? 

     6.  Can you determine the amount of money you should receive in terms of revenues per student? 

     7.  Have you tried to find out how well schools similar to the one you want to open are doing in your community and in the rest of the country. 

     8.  If you need to hire someone to help you, do you know where to look? 

     9.  Do you know what benefits to provide? 

   10.  Do you have a training plan for your employees? 

   11.  Have you talked with the parents and schools in the area? 

   12.  Have you talked to an insurance agent about what kind of insurance you need? 

   13.  Do you know what equipment and supplies you will need and how much they will cost? 

   14.  Can you save money by buying second hand equipment? 

   15.  Have you compared the prices and credit terms of different suppliers? 

   16.  Are you ready for the challenge?