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F. RENEWAL QUESTION 3. IS THE SCHOOL FISCALLY SOUND?
I. BUDGETING AND LONG RANGE PLANNING (BENCHMARK 3A)
The school has operated pursuant to a long-range financial plan. The school has created realistic
budgets that are monitored and adjusted when appropriate. Actual expenses have been equal to or
less than actual revenue with no material exceptions.
Leadership Preparatory Charter School employs clear budgetary objectives and budget preparation procedures. Each
spring, Uncommon Schools’ Director of Finance, with input from Leadership Preparatory’s leadership team and the
Finance Committee of the Board of Trustees, facilitates a 3-month budget review process. First, the Director of
Operations works with Uncommon’s Director of Finance to refine the current fiscal year’s end-of-year budget
projections. The Director of Finance uses these projections to draft the initial budget for the upcoming fiscal year. Once
the school’s leadership team identifies and determines the programmatic needs for the following year, the Managing
Director and Director of Finance meet with the school leaders to review the preliminary budget. The Board’s Finance
Committee the meets to discuss the preliminary budget and provides input. After revisions are made, Uncommon
Schools provides Leadership Preparatory with the final budget draft for the pending fiscal year. It is then it is presented
to the full Board for consideration and approval.
The budget process includes input and analysis from the school leaders, the Managing Director, the Uncommon
School’s Director of Finance, and the Board of Trustees’ Academic and Finance Committees. Through the process
mentioned above, Leadership Preparatory ensures that the approved budget and budget projections are thorough and
accurate. In addition to an annual budget, in partnership with Uncommon Schools, Leadership Preparatory’s has
developed a 10-year projected budget that is updated every year based on actual and forecasted enrollment, staffing,
income and expenditures. In addition to assisting with long-term financial planning, Uncommon Schools produces
monthly financial reports that include a current balance sheet, a profit and loss statement, a budget-versus-actual
expenditure report, and personnel expenditure projections. The Director of Operations reviews these reports with the
Uncommon Schools’ Director of Finance on a monthly basis to ensure fiscal compliance and responsibility.
Accountability Plan Goal 8 – Fiscal Soundness: Leadership Preparatory Charter School will
demonstrate sound fiscal management and coherent fiscal policies.
Background
Leadership Preparatory Charter School has a history of sound fiscal policies, procedures and practice, and is in a strong
position for growth and continued sustainability. There has been significant development in a number of key areas of
fiscal operations. In particular, Leadership Preparatory adheres to an academic and business services agreement with
Uncommon Schools. Uncommon Schools has assumed responsibility of the following fiscal operations: preparing a
projected annual budget, preparing monthly financial statements, recording and tracking income and expenses related to
all grants and contracts, recording all accounts payable invoices and cash receipts, preparing all vendor checks,
reconciling checking accounts each month, providing and maintain payroll services, processing all school (403b) filings,
and interfacing with an outside accounting firm regarding year-end audit work.
Leadership Preparatory will remain a fiscally sound school. Informed school leaders, knowledgeable Board members,
and the financial leadership of Uncommon Schools ensure long-term viability and sustainability.
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Goal 8, Measure I.A. – Fiscal Soundness: Required Outcome Measures: Each year, the school will operate
on a balanced budget meaning actual revenues will equal or exceed actual expenses.
Result
Result
Leadership Preparatory Charter School achieved this goal, maintaining a positive cash flow for the entire school year and
ending the 2007 fiscal year with a positive fund balance as well as a positive cash balance.
Leadership Prep Bedford Stuyvesant Charter School
Attachment F-1