ACE Preparatory Academy Charter School...Recommendation F3 was moved by the Finance committee: that...

ACE Preparatory Academy

Charter School

Board of Directors’ Post-Meeting

Materials: 9.30.15

For questions, please contact John Shertzer, ACE Prep Board Chair:

[email protected]

mailto:[email protected]

Through rigorous academics, positive character development, and excellence in everything we

do, ACE Preparatory Academy Charter School educates all Kindergarten through Grade 5

students for school success and lives of opportunity.

Goals: 1. Ground ourselves in the mission of ACE Prep – keep it front and center!

2. Approve sound fiscal policies to govern our school and heed all committee

recommendations.

3. Deepen our understanding of ACE Prep’s philanthropic goals and efforts.

AGENDA

Time Item Lead Action Materials

4:00 Welcome

- Our Mission

- Announcements/Good News!

- Acknowledgement of guests

John

4:05 Initial Business

- Review of the monthly agenda

- Approval of August minutes

- Consent Agenda

John

Vote

Vote

- September agenda

- August packet

4:09 Carry-Over Business

- Board Expansion: Anne Eaton

- D&O/EPLI Insurance

John

Vote

- Recommendation #G3

4:12 Board Chair Report John Discussion

4:16 Head of School Report Anna Discussion - Management Report

4:21 Action Items

- Background check provider

- Financial Policies & Procedures

- Payroll provider

- School Treasurer

John

Vote

Vote

Vote

Vote

- Recommendation #G4

- Recommendation #F3



4: 30

8 min

5 min

5 min

2 min

Committee Reports

- Finance Committee

- Academic Achievement Committee

- Governance Committee

- Fund Development

Andrea/Lori

Curt

Chasity

Roderick

Discussion

Discussion

Discussion

Discussion

- Monthly report & financials

- Monthly report & dashboard

- Monthly report & dashboard

4:50 Board Development

- Fundraising 101: The ACE Prep Way

Roderick &

Elana

Training

5:20 Discussion Items

- ICSB Contract

Anna

Discussion

-ICSB Contract for ACE Prep

5:25 Questions & Closing Thoughts John

5:29 Executive Session John

5:30 Adjournment John

ACE Prep Board Meeting

September 30, 2015 4:00 PM – 5:30 PM

MINUTES

ACE Preparatory Academy September 30, 2015

4:00 – 5:30

Speakeasy

Present: Board Members: John Shertzer, Amy Marsh, Roderick Wheeler, Andrea McGordon,

Chasity Thompson, Elana Thompson, Curt Merlau, Anne Eaton

Ex-officio Members: Anna Shults

Not Present:

Welcome and Call to Order (John Shertzer, Board Chair)

The meeting was called to order at 4:03 pm.

Mission Read.

Quorum reached.

Good news shared by board members.

Agenda approved.

Minutes from the August meeting approved.

Carry over business

It was reported that Anne Eaton completed the background check requirement and is

officially a member of the board.

Old business

D&O Insurance: Recommendation G3 was moved by the Governance

committee: that ACE Preparatory Academy Charter School Board of Directors

approves E-Risk D&O and EPLI insurance coverage for $3,265, paid in full. No

discussion. Motion was approved.

Action Items:

Recommendation G4 was moved by the Governance committee: that ACE

Preparatory Academy Charter School Board of Directors approves the services

of Safe Hiring Solutions to perform background checks for board members,

committee members, staff and others as required by our Charter and the laws of

Indiana. Proposal from Safe Hiring Solutions was reviewed. Discussion was all in

support of the recommendation. Motion was approved.

Recommendation F3 was moved by the Finance committee: that ACE

Preparatory Academy Charter School Board of Directors approve the Financial

Policies and Procedures Manual dated September 30, 2015. Manual was

reviewed and discussion was all in support of the motion. Motion was approved.


Preparatory Academy Charter School Board of Directors approve Time Payroll as

the third-party vendor hired to process all of the school payroll needs. Proposal

was reviewed and discussion was all in support of the recommendation. Motion

was approved.


Preparatory Academy Charter School Board of Directors approve the

appointment of Anna Shults, Head of School, as the School Treasurer for ACE

Prep. Motion was approved.

Board Chair Report (John Shertzer, Board Chair):

Excellent job getting committees to meet. Rhythm is set.

Request: Facebook page for the school only has 48 followers. Board members

are encouraged to follow and to spread the word to help promote the school.

See Indy Star from today - cover story about charter schools. Story demonstrates

concern over Title 1 funding shortfalls to charters.

Founder/Management Report (Anna Shults, School Founder):

See Head of School Report: countdown of days until school starts, categories of

work.

Discussion around Vista volunteers and partnerships to host volunteers.

Work toward hiring is underway.

Great response to the Midtown Education Summit!

Title 1 funding issues at state level should be resolved before ACE Prep opens.

Introduction of Lori Thompson who follows charter issues and is providing assistance to

the Fund Development Team.

Committee Reports

Academic Achievement Committee (Curt Merlau, Committee Chair):

Scope of work for remainder of the year. Staff and student recruitment is crux of work

for year zero - see dashboard metrics. Plans to visit peer schools to learn comparative

data. What is metric closest related to full enrollment? Is there a mechanism to learn

where students go if they sign a letter of intent but do not enroll? These items are to be

considered in year zero. Others will share with this committee items that need to be

understood by the board over the course of the next year.

Finance Committee (Andrea McGordon and Roderick Wheeler):

Creation and final edits of handbook. Now have corporate credit card for regular

expenses, along with online banking. Laurie Thompson of INIschools will start training

Anna on financial statements. Lori updated current funds - no restrictions on Walton

Funds. No outstanding debts and minimal expenses. Books will be kept on accrual

basis, as required by authorizer. Lori’s roll will be supporting from INI schools - reporting,

transactions, software entry as needed, grant management, general financial

reporting. INIschools will provide a chart with projected cash flow projections.

Committee will meet with Lori monthly.

Fund Development Committee (Roderick Wheeler, Committee Chair):

No report this month.

Governance Committee (Chasity Thompson, Committee Chair):

Finalizing dashboard. Committee chairs should use Box account for documents and

meeting dates. One event, Get on Board, is upcoming. Board members are

encouraged to participate and find potential Board members. Let Chasity know of

additional events that ACE Prep should consider being involved with.

Presentation (Elana):

The Fund Development committee provided a presentation on the importance of

fundraising and development of a case statement for ACE Prep. The presentation was

well-received and discussions will continue at future meetings.

Adjournment

The meeting was adjourned at 5:35 pm.

INDIANA SCHOOL CRIMINAL HISTORY

Employment & Volunteer Screening

Level I Screen (VOLUNTEER)

Social Security Verification

Address History

National Criminal History Database Search (300+ million records)

Multi-State Sex Offender Registry Search (records from 50 states and Washington D.C.)

County Criminal Search Level III Screen/Expanded Criminal History $28.00*

Social Security Verification

Address History

National Criminal History Database Search (300+ million records)

Multi-State Sex Offender Registry Search (records from 50 states and Washington D.C.)

Up to 3 County Criminal Searches based on Address History * Additional court access fees in a few jurisdictions

Additional Screening Services Motor Vehicle/Driving Records $5*

Federal Criminal Records Search $3.50

Employment Verification (up to 3 prior employers) $18

Education Verification $8

Electronic Form I-9 $3.75

Legal Right to Work Verification $4

Employment Credit Report $7

Military Service Verification $8

Professional License Verification $8

Professional Reference Verification $10

Drug Testing Call for Pricing

ACE Preparatory Academy Charter School

Financial Policies and Procedures

Manual

DRAFT 9.23.15

This document describes the f inanc ial policies and procedures for the accounting and

administrative functions conducted by ACE Preparatory Academy Charter School. The Board of

Directors is to review the manual every year and may amend it as needed.

1

Table of Contents

General Information……………….………………………..……………………………………3

Overview – Fiduciary Responsibilities of the Board of Directors…….…………..……….4

SECTION 1 – Budget………………………………………………………….…………..……….5

1.01 Budget Development………………………………………….………………………….5

SECTION 2 – Purchases.………………………..………………………………………..……….6

2.01 Purchasing…………………………………………………………………………………..6

2.02 Receipt of Goods …………………………………….…….…………………………..…7

SECTION 3 – Contracts.………………………..………………………………………..……….7

3.01 Contracts……….…………………………………………..……………………......……...7

3.02 Competitive Bidding Procedure……………...………………………………....……...8

SECTION 4 – Accounts Payable……………..………………………………………..………..8

4.01 Segregation of Duties…....………………………………………………………...……...8

4.02 Bank Checks…...…....………….………………………………..…………………..……..9

4.03 Cutting Checks..……………………………………………………………………….….10

4.04 Board Approval of Expenditures…...………………………………………………….10

4.05 Reoccurring Expenses..……………………………………………………………….…11

4.06 Fixed Assets……..………………………………………………………………………….11

SECTION 5 – Accounts Receivable….……………..…………………….………….……….11

5.01 Cash Receipts via ACH..……………………….……………………………….....…….11

5.02 Cash Receipts via Bank Deposit ……………………………..………………………..13

SECTION 6 – Recording Cash Receipts….………..…………………….…………………..13

SECTION 7 – Payroll……………………...…………..……………….…….…………..……….13

7.01 Timesheets………………..……………………….……………………………….....…….13

7.02 Payroll Processing………………………………………………..………………………..14

7.03 Payroll Taxes and Filings..……………………….……………………………….....…….14

7.04 Record Keeping…………………..……………………………..………………………...14

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SECTION 8 – Expenses………………….……………..…………………….………….……….14

8.01 Expense Reports………..……………………….……………………………….....….….14

8.02 Travel………………………………..……………………………..………………….……..15

8.03 Governing Board Expenses…………………………………………………….………..15

SECTION 9 – Finance…………………….….………..…………………….…………………..16

9.01 Timesheets………………..……………………….……………………………….....…….16

9.02 Financial Institution..……………………………………………..………………………..16

9.03 Bank Reconciliation….....……………………….……………………………….....…….16

SECTION 10 – Month-End Process….….….………..…………………….…………………..16

SECTION 11 – Financial Compliance…….………..…………………….…………………..17

11.01 Form 9…..………………..……………………….……………………………….....…….17

11.02 Annual Financial Audit Responsibilities……………………..………………………..17

11.03 Form 990…………..….....……………………….……………………………….....…….18

11.04 Property Tax……………………………………………………………………………….18

SECTION 12 – Records Management...….………..…………………….…………………..18

SECTION 13 – Grants…………………..…….………..…………………….…………………..18

13.01 Grant Management.....……………………….……………………………….....…….18

13.02 Grant Reports…………………………….……………………..………………………..19

APPENDIX A: Due Dates……………………………………………………………………….20

APPENDIX B: Form 517A………………………………………………………………………..22

Special thanks to University Prep Charter School, Great Lakes Academy, Stellar Collegiate Charter

School, Laurus Collegiate Charter School, and INIschools for their guidance in developing this

manual.

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GENERAL INFORMATION

Definitions

HOS: Head of School

DOE: Indiana Department of Education

FE: Blackbaud’s Financial Edge accounting system

INIschools: Indiana Network of Independent Schools, LLC

SBOA: State Board of Accounts

Accounting Service Provider

ACE Preparatory Academy Charter School (“ACE Prep”) has contracted with Indiana

Network of Independent Schools, LLC (“INIschools”) to provide accounting services. A

Request For Proposal (RFP) will be prepared in Spring 2016 to identify a CPA firm to conduct

the school’s annual audit.

Accounting System

ACE Prep uses Blackbuad’s “The Financial Edge” (FE) accounting system. The following

users will have access to The Financial Edge:

Anna Shults – Head of School, ACE Prep

Andrea McGordon – Board Treasurer, ACE Prep

Lori Thompson – Controller, INIschools

Chart of Accounts

The chart of accounts consists of three segments:

1. 4-digit fund code – per SBOA guidelines. This segment must balance.

2. 12-digit account code – the first two digits define the account type, next 8 digits

are the department and object code (or revenue code) specified by SBOA, and

the last two digits are designed to allow the SBOA code to be broken down into

further detail. Account types are defined as follows:

1 – Asset 3 – Equity

11 – Cash 31 – Unrestricted Net Assets

12 - Accounts Receivable 32 – Temporarily Restricted Net Assets

13 – Prepaid Expenses 4 – Revenue

15 – Fixed Assets 41 – Private Funding

2 – Liabilities 42 – State Funding

21 – Accounts Payable 43 – Federal Funding

22 – Payroll Liabilities 44 – Student Fees

24 – Short-Term Debt 49 – Miscellaneous

26 – Long-Term Debt 5 – Expenses

29 – Interfund Transfers 51 – Personnel Expenses

52 – Non-Personnel Expenses

3. 3-character location code. This segment must balance.

A 3-digit grant code is an additional required field of data. Codes are assigned

numerically as grants are awarded. Numbers are assigned within the following categories:

000 – used for transactions that

are not related to a specific grant

100 -199: Not In

Use

200 - 299:

Private Funding

300 – 499:

State Funding

500 – 799: Federal

Funding

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OVERVIEW – Fiduciary Responsibilities of the Board of Directors

ACE Preparatory Academy Charter School (“ACE Prep”) is committed to developing and

maintaining financial policies and procedures that ensure sound internal controls, fiscal

responsibility, and accountability in accordance with Generally Accepted Accounting

Principles (GAAP). ACE Prep will follow all relevant laws and regulations that govern charter

schools in Indiana. As a nonprofit organization, ACE Prep is entrusted with funds granted by

government agencies, private foundations, and individual contributors, and it will adhere

to the highest of accounting standards.

The Financial Policies and Procedures Manual contains the policies necessary to be strong

stewards of public dollars and to carry out the fiduciary responsibilities pursuant to Indiana

charter schools and non-profit entities for the purpose of creating a high quality, public

charter school for the students and families of Indianapolis. Clear policies and procedures

will enable the school to meet its financial needs and obligations, ensure long-term financial

stability and viability, and protect its tangible assets and reputation.

The Board of Directors for ACE Prep has reviewed and adopted the following procedures to

ensure transparent and effective use of ACE Prep’s funds aligned with the school’s mission

and vision. Furthermore, the policies outlined within safeguard that funds are budgeted,

accounted for, expended, and maintained appropriately.

Financial Leadership and Management

The financial management team of ACE Prep consists of:

- Board of Directors

- Finance Committee

- Treasurer of the Board of Directors

- Head of School (HOS)

- Operations Manager

- School Treasurer

- Back-office Service Provider (INIschools)

The day-to-day fiscal responsibilities of ACE Prep are assigned to INIschools and the

school’s fiscal staff. However, ultimate fiduciary responsibility for the overall

management of the organization lies with the Board of Directors.

Financial duties and responsibilities must be separated so that no one employee has

sole control over cash receipts, disbursements, payrolls, and reconciliation of bank

accounts.

Any violation of these policies and procedures is considered to be cause for

termination or removal and, depending upon the nature of the infraction, civil and/or

criminal prosecution.

Governance Responsibilities – Full Board of Directors

The ACE Prep Board of Directors will meet at least 10 times per year to ensure its

fiduciary duty is maintained. The Board of Directors formulates financial policies and

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procedures, delegates administration of the policies and procedures to the Head of

School, and reviews operations and activities on a regular basis.

The Board of Directors will commission an annual financial audit by an independent

third party auditor who will report directly to the Finance Committee. The Board will

approve the final audit report and a copy will be provided to the Indiana Charter

School Board (ICSB). Any audit exceptions and/or deficiencies will be resolved to the

satisfaction of the Board and ICSB.

The Board of Directors can appoint someone else to perform the HOS responsibilities

in the case of absence. (See ACE Prep’s board approved Leadership Sustainability

Plan.)

Governance Responsibilities – Finance Committee

ACE Prep established a Finance Committee by the first full governing board meeting

post authorization. This committee will meet monthly prior to the board meeting and

is responsible for selecting an audit firm, reviewing the financial policies and

procedure manual on an annual basis, approving the annual budget, and working

with the school’s finance team to review the monthly financial statements.

The Finance Committee of the Board of Directors shall be responsible for the primary

Board-level oversight of school financial matters, as defined by the Board. The HOS

will have the primary responsibility of executing all financial matters. All members of

the financial management team will work together to make certain that all financial

matters of the organization are addressed with care, integrity, and in the best interest

of ACE Prep. (See Page 4 for members.)

Section I - Budget

1.01 Budget Development

ACE Prep’s budget is created annually and updated regularly based on actual expenditures

and programmatic changes that occur during the year. Creation of the annual budget and

capital budget is an iterative process led by the Head of School with input from other staff

members as appropriate and developed alongside INIschools. INIschools is available to

draft the initial budget, meet periodically with the HOS, Board Treasurer, and other key

personnel to determine what changes are necessary.

Once complete, the HOS presents the overall budget to the Finance Committee for review.

If/when the committee is satisfied, the budget is then presented to the entire Board for a

vote of approval. The budget must be approved and passed by June 30, before the start

of a new fiscal year. Once approved, the budget is forwarded to INIschools, who then

enters it into FE in order to prepare budget-to-actual and year-to-year reports as needed.

The implementation of, and accountability for, the budget is the sole responsibility of the Head

of School.

From a day-to-day operational standpoint, the HOS may work with the Treasurer of the Board

of Directors or the Chairperson of the Board of Directors to resolve questions or issues related

to the budget.

6

SECTION II – Purchases

By the adoption of the operating budget by the Board of Directors, the Head of School

becomes both responsible for, and generally authorized to expend, the amounts budgeted.

This authorization may, however, be qualified by Board action based upon availability of

funds.

ACE Prep procures only those items and services that are required to fulfill the mission and/or fill a

legitimate need. Procurements are made using best value contracting which entails assessing the

best value considering quality, performance, and price. This is achieved partly by the Operations

Manager, who also has the annual responsibility of reviewing the newly approved budget to

uncover patterns of orders and opportunities for clustering orders to achieve volume discounts.

ACE Prep adheres to the following objectives:

Procurements will be completely impartial based strictly on the merits of supplier and

contractor proposals and applicable related considerations, such as delivery,

quantity, quality, etc.

The school will make all purchases in the best interests of the school and its funding

sources.

The school will obtain quality supplies/services needed for delivery at the time and

place required.

The school will buy from reliable sources of supply.

The school will obtain maximum value for all expenditures.

The school will deal fairly and impartially with all vendors.

The school will be above suspicion of unethical behavior at all times – avoid any

conflict of interest, related parties or even the appearance of a conflict of interest in

ACE Prep supplier relationships. The school’s conflict of interest policies are described

in the bylaws.

2.01 Purchasing

The Head of School may authorize expenditures and may sign related contracts

within the approved budget.

All purchases over $5,000 must include documentation of a good faith effort to

secure the lowest possible cost for comparable goods or services.

The HOS must approve all purchases. Purchase requisitions, authorizing purchase of

items greater than $500, must be signed by the HOS. When approving purchases,

the HOS must determine:

- Is the expenditure is budgeted?

- Are funds currently available for expenditures?

- Is the expenditure is appropriate and consistent with the mission and vision of ACE

Prep?

- Is the expenditure aligned with the approved charter application, school policies

and procedures, and any related laws or applicable regulations?

- Is the price competitive and prudent?

Any individual making an authorized purchase on behalf of the school must provide

ACE Prep’s Operations Manager with appropriate documentation of the purchase.

7

Individuals who use personal funds to make unauthorized purchases will not be

reimbursed. Authorized purchases will be promptly reimbursed upon receipt of

appropriate documentation of the purchase.

The HOS may authorize an individual to use a school credit card to make an

authorized purchase on behalf of the school, consistent with these guidelines

provided by the HOS and/or Board of Directors.

- The school card will be kept under locked supervision by the HOS and authorized

individuals must sign the credit card out and must return the credit card and the

related documentation of purchases within 24 hours of the purchase, unless

otherwise authorized by the HOS.

- If receipts are not available or are “missing”, the individual making the charge will

be held responsible for payment.

The Finance Committee must review all expenditures. This will be done via approval

of documentation listing all debits written during a set period of time.

2.02 Receipt of Goods

All goods purchased by ACE Prep are delivered directly to the school. It is the responsibility

of the Operations Manager to sign for delivery. The Operations Manager is also responsible

for opening the package(s) and obtaining the packing slip(s). The packing slip will be

reviewed for accuracy, checked against the original PO, stamped as received, and signed

by the Operations Manager. If everything is not correct with the order, the Operations

Manager will contact the vendor for a return/credit to the account. When discrepancies

occur, they are to be resolved by the Operations Manager and/or HOS.

SECTION III - Contracts

3.01 Contracts

Consideration will be made of in-house capabilities to accomplish services before

contracting for them.

The Head of School will approve all proposed contracts and modifications in writing

and is responsible for ensuring the terms of the contract are fulfilled.

The Operations Manager will keep and maintain a contract file evidencing the

competitive bids obtained (if any) and the justification of need for any contracts over

$5,000.

All purchases over $5,000 must include documentation of a good faith effort to

secure the lowest possible cost for comparable goods or services.

- Written contracts clearly defining work to be performed will be maintained for all

contract service providers (i.e. consultants, independent contractors,

subcontractors).

- Contract service providers must show proof of being licensed and bonded, if

applicable, and of having adequate liability insurance and worker’s

compensation insurance currently in effect. The HOS may also require that

contract service providers list the school as an additional insured.

The Board of Directors must also review all contracts over $5,000 outside of budgeted

dollars.

8

Contract service providers will be paid in accordance with approved contracts as

work is performed.

If the contract service provider is a sole proprietor or a partnership, the school must

have a W-9 from the contract service provider prior to submitting any requests for

payment to ACE Prep.

Potential conflicts of interest will be disclosed upfront, and the HOS and/or members

of the Board of Directors with the conflict will excuse themselves from discussion and

from voting on the contract.

When necessary, legal counsel deemed will review all contracts over $5,000.

3.02 Competitive Bidding Procedure

Competitive bids will be obtained where required by law or otherwise deemed appropriate

and in the best interest of the school.

Contracts less than $75,000:

- The school uses sound business practices when procuring goods and services for

amounts less than $75,000.

Contracts greater than $75,000:

- The school seeks price quotes from at least three vendors and awards the contract

to the responsible vendor offering the supply or service needed for the lowest price.

The Operations Manager is responsible for soliciting these quotes, and the Head of

School provides final approval. Award may be made to a vendor other than the

low bidder in circumstances where the higher bid demonstrates best value

contracting procedures to the school. In such situations, the Operations Manager

shall prepare a justification statement for such awards, furnishing a brief explanation

of the factors leading to such a decision, and the HOS approves the final bid.

Sole proprietor:

- If the vendor is providing a unique service that is not offered by other vendors

then they are called a “sole proprietor” and no bidding is required. However, it

does require a letter describing the unique service.

SECTION IV – Accounts Payable

ACE Prep has established an accounting system comprised of the methods and records

used to identify, assemble, classify, record, and report accounting transactions. The

methods are set up to: (1) identify and record all of the organization’s transactions, (2) verify

that recorded transactions actually took place, (3) describe the transactions in enough

detail to allow classification for financial reporting, (4) ensure transactions are recorded at

the appropriate amounts, (5) indicate the time period in which transactions occurred in

order to record them in the proper accounting period, and (6) ensure that transactions were

properly authorized.

The fiscal year is from July 1st to June 30th. The school’s audited financial statements must

be approved by the Board of Directors and provided to the appropriate oversight entity

according to all applicable requirements. Furthermore, the school’s budget for the following

9

fiscal year must be drafted for Board review and approved prior to the end of the current

fiscal year. The budget may later be revised and approved as necessary.

4.01 Accounts Payable Cycle: Segregation of Duties

A hierarchical structure of authority and responsibility has been developed at ACE Prep.

Tasks are divided and allocated to guard against one individual having the ability to make

an accounting error (either knowingly or unknowingly). This protects the school from any

potential fraud or misappropriation of funds.

1. ACE Prep Operations Manager (Year 0 - HOS)

- Is responsible for collecting all bills and invoices

- Reviews all invoices for accuracy

- Matches invoices to supporting documentation

- Contacts vendors if corrections are needed

- Forwards bills/invoices to HOS/School Treasurer for review and approval

2. Head of School/School Treasurer (Year 0 – Could also be performed by Board Treasurer)

- Reviews all invoices for reasonableness

- Initials all invoices to indicate that the transaction is to be entered in to the

accounting system

- Returns all documents to Operations Manager

3. ACE Prep Office Manager (Year 0 – HOS)

- Collects approved documents and forwards to INIschools for processing

4. INIschools

- Receives invoices/statements from Office Manager

- Records invoices in FE Accounts Payable module as an outstanding payable,

indicating the appropriate fund, ledger account, location, and grant code for

each line item

- Files invoices and documentation awaiting payment

- Prepares an AP Voucher (Form 523 prescribed by State Board of Accounts) for

each invoice

- Forwards AP Vouchers to Operations Manager for signature

- On a weekly basis, prepares an Outstanding Payables report and forwards to

Head of School/School Treasurer

5. ACE Prep Operations Manager (Year 0 – Could also be performed by Board Treasurer.)

- Signs all AP Vouchers indicating that the invoice has been reviewed and is correct

- Forwards AP Vouchers to Head of School/Treasurer for signature

6. Head of School

- Signs all AP Vouchers indicating that the invoice is approved for payment

- Returns documentation to Office Manager

- Reviews weekly Outstanding Payables report

- Indicates which items on the Outstanding Payables report should be paid that

week

- Returns the Outstanding Payables report to INIschools for checks to be processed

10

4.02 Bank Checks

The Board of Directors will approve, in advance, the list of authorized signers on the

school account. The Head of School, the Board Chair, Treasurer (or approved

designee) may sign bank checks within established limitations.

The Board of Directors will be authorized to open and close bank accounts.

ACE Prep’s HOS will be responsible for all blank checks and will keep them under lock

and key.

The Head of School and either the Board Chair, Treasurer (or approved designee) will

co-sign checks in excess of $10,000 for all non-recurring items. All checks less than

$10,000 require only the signature of the Head of School.

Under no circumstance will any individual sign a blank check.

4.03 Cutting Checks

All invoices under $10,000 will immediately be sent to the Head of School for approval. All

invoices above follow dual signature process.

INIschools

- Prints checks for invoices approved for payment

- Forwards all checks along with documentation to the HOS/School Treasurer for

signature

HOS/School Treasurer

- Signs checks if under $10,000. If over $10,000 an additional signature is required

as stated above.

- Forwards checks to Operations Manager

Operations Manager

- Mails checks to vendors

- Attaches check stub to AP Voucher, invoice, packing slip, and other supporting

documentation if available

- Notes check number on AP Voucher

- Files documentation in vendor files

4.04 Board Approval of Expenditures

The Board of Directors approves the budget for ACE Prep annually.

The Board gives school management permission to make all purchasing decisions

based on need, available budget, and cash flow.

At each Board meeting, the Board is provided with an Accounts Payable Voucher

Register (APVR) which documents all expenditures made during the prior period.

The Board has the opportunity to question management on any/all purchases

documented on the APVR.

During the Board meeting, the Board approves all expenditures on the APVR as

allowed by SBOA.

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4.05 Recurring Expenses

Recurring expenses that exceed the thresholds stated above can be approved once

annually by the Board Treasurer, and then will not need to be approved monthly moving

forward. For example, if the cost of health insurance payments exceeds $10,000 per month,

the Treasurer may approve that payment one time, co-sign the check, and then provide

written approval so that in future months his approval and co- signatory are not needed to

process payment.

4.06 Fixed Assets

Items valued at more than $1,000 that have a useful life beyond one year are

capitalized.

Invoices for fixed assets are processed the same as other vendor invoices, however

additional steps are taken to document the purchase of fixed assets.

INIschools

- Records each asset, along with serial number when available, in FE’s Fixed Assets

module.

- Assets are coded to the appropriate asset class and grant.

FE is setup to calculate depreciation on a straight line basis as follows:

- Furniture – 5 years

- Equipment – 5 years

- Computer – 3 years

- Software – 3 years

On an annual basis, inventory will be taken and adjustments for disposal of assets will

be recorded in FE and Form 369 will be updated as required by SBOA.

SECTION V – Accounts Receivable

Documentation will be maintained for accounts receivable and provided to ACE Prep’s

INISchools and/or Operations Manager, recorded in the general ledger, and collected on

a timely basis.

The majority of funds are received by ACH from the State Auditor’s office.

5.01 Cash Receipts via ACH

Basic Tuition Support

Received from DOE based on student counts as of two specific count days – one in

Sept and on in Feb

- May: submit estimated student count

- July: receive 1/12 of annual funding based on estimated May count

- Aug: receive same amount as in July; based on estimate

- Sept: receive same amount as in July; based on estimate. Count Day occurs.

- Oct: receive same amount as in July; based on estimate

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- Nov: reconciliation based on Sept count; DOE determines what funding should

be received July-Dec based on actual count, reduces that by what was actually

received July-Oct, divides by two

- Dec: receive same amount as Nov; based on Sept count

- Jan: receive 1/12 of annual funding based on Sept count

- Feb: receive same amount as in Jan; based on Sept count. Count Day occurs.

- March: receive same amount as in Jan; based on Sept count

- April: reconciliation based on Feb count; DOE determines what funding should

be received Jan-June based on Feb count, reduces that by what was actually

received Jan-March, divides by three

- May: receive same amount as in April; based on Feb count. Submit estimate for

coming school year to DOE.

- June: receive same amount as in April; based on Feb count.

Funds are received on the 15th of each month (the previous Friday if the 15th falls on

Saturday; the following Monday if the 15th falls on Sunday).

DOE emails a notice of deposit to designated school official.

See Section VI: Recording Cash Receipts.

Federal Grants

The majority of federal grant awards are made through DOE and funds are distributed on a

reimbursement basis.

Reimbursement claims can be submitted to DOE on the 1st and 15th of each month.

INIschools is informed at the time of the grant award as to which staff members

should be coded to the grant.

INIschools codes the grant expenses appropriately in FE when recording the vendor

invoice.

INIschools:

Codes the appropriate staff members to the grant when recording the bi-weekly

payroll transactions.

At the end of each month, reviews the General Ledger to determine which expenses

should be claimed for reimbursement.

Prepares the appropriate reimbursement claim form and forwards to the HOS/School

Treasurer for review.

Records an entry to adjust the outstanding grant receivable balance.

Head of School/School Treasurer:

Reviews the reimbursement claim for accuracy.

Signs grant claim.

Submits grant claim to DOE or appropriate agency.

DOE:

Submits payment via ACH

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Emails a notice of deposit to designated school official.

See Recording Cash Receipts

5.02 Cash Receipts via Bank Deposit

Cash and checks are received for various purposes. All employees receiving or accepting

cash or checks are instructed to forward the funds to the Office Manager the same day.

Office Manager

- Issues a receipt to all individuals making payments to the school

- Maintains a daily log of all funds received, noting who the funds were received

from, amount received, and for what purpose.

- Copies all checks received

Operations Manager

- Prepares a bank deposit slip

- Delivers the deposit to the bank by the end of the next business day as required

by SBOA

- Attaches bank receipt to documentation

- Forwards all documentation to INIschools

See Section VI: Recording Cash Receipts.

SECTION VI – Recording Cash Receipts

6.01 Recording Cash Receipts

Once the receipt of funds has been confirmed:

INIschools

- Records the cash receipt in FE’s Cash Receipts module

- Creates Receipt (Form 517 prescribed by State Board of Accounts)

- Attaches Receipt to supporting documentation

- Forwards Receipt to HOS/School Treasurer for signature

HOS/School Treasurer reviews documentation and signs Receipt

Office Manager files documentation

SECTION VII – Payroll

ACE Prep contracts with a payroll provider to process all payroll transactions, make

appropriate tax payments and prepare/submit all payroll tax reporting to the appropriate

agencies.

Payroll is processed bi-weekly.

Employees are required to receive their paycheck via direct deposit.

7.01 Timesheets

Time is accumulated through timesheets.

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Office Manager collects timesheets and forwards to Head of School

7.02 Payroll Processing

Head of School approves all timesheets and forwards to INIschools for processing

INIschools

- Submits all payroll information to the payroll provider for processing based on

information provided by the school

- Creates a summarized journal entry and enters it into FE

- Reviews quarterly payroll reports for accuracy

- Reviews W2 annually for accuracy

7.03 Payroll Taxes and Filings

ACE Prep’s payroll provider will prepare payroll check summaries, tax

withholding summaries, and other payroll tracking summaries.

INIschools, with the help of the payroll provider, will prepare the state and

federal quarterly and annual payroll tax forms, review the forms with the HOS,

and submit the forms to the respective agencies.

7.04 Record Keeping

The Operations Manager will be responsible for all new employees completing and/or

providing all of the items required for inclusion in individual personnel files and the

maintenance of these records to ensure information is up-to-date.

An employee’s hiring is not effective until the employment application, form W-4, form I-9,

and health insurance forms have been completed.

The designated school employee will maintain written records of all full time employees’ use

of sick leave, vacation days, and any other unpaid absences. The designated school

employee will immediately notify the HOS if an employee exceeds the accrued sick leave

or vacation pay, or has any other unpaid absences. Each employee must maintain

personal contemporaneous records. (All HR policies are listed in the staff handbook.)

SECTION VIII – Expenses

8.01 Expense Reports

Employees will be reimbursed for expenditures within thirty (30) days of

presentation of appropriate documentation.

Employees will complete expense reports monthly, as necessary, to be submitted

to the office manager and in turn, provided to ACE Prep's Financial Consultant

and/or School Treasure.

Receipts or other appropriate documentation will be required for all expenses.

The employee and the Head of School must sign expense reports.

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Head of School expense reports should be approved by a member of the board

and always be submitted to INISchools for processing and payment.

Expenses greater than two months old will not be reimbursed.

8.02 Travel

Mileage

Employees will be reimbursed for mileage only when pre-approved by the HOS.

Mileage will be reimbursed at the government-mandated rate for the distance

traveled, less the distance from the employee’s residence to the school site for reach

direction traveled. For incidental travel, mileage will be only reimbursed if the one-

way mileage exceeds 10 miles.

Staff members must complete the appropriate mileage reimbursement form along

with a Mapquest printout that includes the starting point and destination.

Approved reimbursement forms and documentation are forwarded to INIschools for

processing.

INIschools includes reimbursement for travel expenses on the employee’s next

paycheck.

Out of Town Travel

The HOS must pre-approve all out of town travel.

Employees will be reimbursed for overnight lodging when pre-approved by the HOS

and the event is more than 60 miles from either the employee’s residence or the

school site. Lodging rates should be negotiated at the lowest level and rate possible.

Employees will be reimbursed at the established per diem rate for any breakfast,

lunch, or dinner that is not included as part of the related event.

Travel Advances

Travel advances require written approval from the HOS.

Travel advances require receipts for all advanced funds.

After the trip, the employee must enter all of the appropriate information on an

expense report and submit to the HOS for approval and then on to the Operations

Manager for processing.

If the advance exceeds the amount of the receipts, the employee will pay the

difference immediately in the form of a check.

If the advance is less than the amount of the receipt, the difference will be

reimbursed to the employee in accordance with the expense report.

8.03 Governing Board Expenses

Any board member incurring authorized expenses while carrying out the duties of

the school will complete and sign an expense report.

The HOS will approve and sign the expense report and submit it to INISchools and/or

Operations Manager for payment.

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SECTION IX – Finance

9.01 Financial Reporting

• Prior to each Board of Director’s meeting, the following will be sent to the Finance

Committee for review:

1. monthly budget vs. actual reports

2. monthly balance sheets

3. cash flow projections

4. accounts payable voucher

5. accounts receivable voucher

6. enrollment budget vs. actual report per grade for General Education and Special

Education students.

9.02 Financial Institution

All funds will be maintained at a high-quality financial institution.

All funds will be maintained or invested in high-quality, short maturity, and liquid funds.

Physical evidence will be maintained on-site for all financial institution transactions.

9.03 Bank Reconciliation

The following staff members have online access to the bank accounts:

Head of School

Board Treasurer (or appointed designee)

INIschools (read only access)

On a weekly basis INISchools reviews account for unusual or suspicious activity. At the end

of each month:

INISchools

- Downloads the bank statement

- Reconciles the bank account in FE

- Notifies HOS/School Treasurer of any checks outstanding for more than six months

- Sends HOS/Board Treasurer the bank reconciliation report

Head of School/Board Treasurer

- Reviews bank statement and reconciliation report

SECTION X – Month-End Process

10.01 Month-End Process

Once the bank statement has been reconciled, the following steps are taken:

INIschools

- Prepares month-end journal entries for the following items:

To expense prepaids

To record any outstanding receivables, including grant receivables

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To record monthly depreciation

To accrue payroll, if necessary

To accrue any recurring monthly expenses for invoices that have not

yet been received

Any additional entries identified during the month

- Reviews GL for accuracy

Journal entries are posted to make any necessary corrections

- Prepares draft of financial statements in accordance with accounting principles

for not-for-profit organizations.

- Meets with HOS/Finance Committee to review financial reports prior to Board

meeting and makes corrections if necessary.

- Finalize reports and send final copy to HOS and Board Treasurer.

SECTION XI – Financial Compliance

11.01 Form 9

The Form 9 is the state Biannual Financial Report required by the State Board of

Accounts.

The January report includes cash-based information for the period of July 1 through

December 31.

The July report includes cash-based information for the period of January 1 through

June 30.

INIschools is responsible for preparing these reports and submitting them to the

HOS/Treasurer in a timely manner.

HOS/Treasurer will review and submit to DOE by due date.

11.02 Annual Financial Audit Responsibilities

The Board of Directors will annually appoint an Audit Committee comprised of

members of the Finance Committee by January 1 to select an auditor by March 1

prior to year-end (June 30).

Any persons with expenditure authorization or recording responsibilities within the

school may not serve on the committee.

The Audit Committee will annually contract for the services of an independent,

certified, public accountant to perform an annual fiscal audit.

The audit shall comply with state regulations and shall include, but not be limited to:

- An audit of the accuracy of the financial statements

- An audit of the attendance accounting and revenue accuracy practices

- An audit of the internal control practices

ACE Prep will contract with a local CPA firm for annual audit services.

HOS/Treasurer

- Notifies SBOA once the audit has been scheduled.

- Provides the necessary financial reports and documentation to auditors.

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- Serves as the main point of contact during the audit process.

- Notifies SBOA at least 2 days in advance of exit interview (including date, time,

and place).

INIschools will provide support to HOS/Treasurer as needed during the audit process.

11.03 Form 990

The Form 990 will be prepared by the same CPA firm that contracts to conduct the

annual audit.

HOS/Treasurer is responsible for providing information to the CPA firm.

INIschools will provide support to HOS/Treasurer as needed.

11.04 Property Tax

The annual Property Tax return will be prepared by the same CPA firm that contracts

to conduct the annual audit.

Head of School/Treasurer is responsible for providing information to the CPA firm.

INIschools will provide support to the HOS/Treasurer as needed.

Section XII – Records Management

ACE Prep is responsible for maintaining all financial records in accordance with all state

regulations defined by public record laws. INIschools will provide support and guidance as

needed.

Section XIII - Grants

13.01 Grant Management

Upon notification of a grant award, the grant’s manager will submit a copy of the grant

agreement and notification letter to HOS/Treasurer and INIschools.

Head of School and INIschools will discuss the requirements of the grant.

INIschools:

- Will determine in which period revenue should be recorded and whether any or

all of the grant should be recorded as temporarily restricted funds.

- Assigns a grant code and sets up the necessary accounts in the accounting

system.

- Reviews all grant activity on a monthly basis to determine accuracy and

compliance.

- Provides a summary of all grant activity to HOS/Board Treasurer on a monthly

basis.

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13.02 Grant Reports

INIschools is responsible for preparing all grant reports on a timely basis. All reports

will be forwarded to HOS/Board Treasurer for review.

Head of School/Board Treasurer reviews all grant reports prior to submission to the

appropriate agency.

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APPENDIX A: DUE DATES (Below is the calendar for school year 2015-2016. This section will be updated accordingly when

dates for the 2016-2017 school year are known.)

JULY 2015

1 – Grant claims due to DOE

5 – Quarterly interest earned reports due to DOE


15 – Monthly financial statements due to HOS/Treasurer

AUGUST 2015


1 – Quarterly financial statements due to authorizer



SEPTEMBER 2015




* - student count due to DOE

OCTOBER 2015


5 – Quarterly interest report due to DOE



NOVEMBER 2015





15 – Form 990 due

30 – Audit draft due to SBOA

DECEMBER 2015




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JANUARY 2016





30 – Form 9 due

FEBRUARY 2016





* - student count due to DOE

MARCH 2016




APRIL 2016




15 – Monthly financial statement due to HOS/Treasurer

MAY 2016




15 – Monthly financial statement due to HOS/Treasurer

15 – Property Tax Return due

* - estimated student count for 2015-2016 due to DOE

JUNE 2016




30 – Submit copy of Board approved budget and cash flow to authorizer

* - Budget presented to Board of Directors for approval

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APPENDIX B: FORM 517A

Form 517A Installed in Ace Preparatory Academy- 2016

RECEIPT

OFFICE OF TREASURER OF SCHOOL BOARD

DATE:

SCHOOL: Ace Preparatory Academy DEPOSIT NO:

BANK: PAYMENT

NO:

RECEIVED FROM: AMOUNT:

DESCRIPTION:

PAYMENT TYPE:

ACCOUNT: GRANT: PROJECT: AMOUNT:

SCHOOL TREASURER

Payroll

Time & Labor Mgmt.

HR

Ace Prep Charter School

Important Needs:

• Security and Reliability

• Service – Local & Accessible

• Accuracy

• Efficiency

• Price Point & ROI

• Time Saving

– “Hands-Off” – Approve and Pay

– New Hire, EE On Boarding, EE Maintenance

Security

Ability to set how often employees will be required to reset their password

Payroll client & SBO users will be able to change their passwords when required

Ability to set the minimum password requirement character length

Automatic account lockout when the user enters their password incorrectly 5 times

Ability to reset user password when the user forgets their password

SSL 128 Bit Encryption

Time Payroll Data Storage – Atlanta, New Jersey

Service

• Dedicated Account Manager

– Selena Corpuz (she is a clone of Alicia)

– Direct Dial Number

– Quarterly Networking Events – Clients & Partners

– Stop in and see us!

• Dedicated Account Team

– Heidi Wright – Vice President of Service

– David Seitz – Vice President of Sales

Employer On The Go (EGO)

My Employer On The Go

(MEGO)

•

My Employer On The GO

(MEGO)

• SSL 128 Bit Encryption

• Any Device, Any Browser, Any Time

• Integrated Web Based Time Keeping

• Integrated Time Off Request & Approval

– Employee

– Manager

• Document Storage

– Company

– Employee

Key Features & Functionality

Electronic Pay Stubs

Tasks

Timekeeping

Timesheets

W2

W4

Direct Deposits

Emergency Contacts

Leave Management

Benefits Statements

Company

Announcements

Payroll & HR Calendar

Employee Directory

HR -Reviews, Education,

Training, Tests, Property

Document Storage

Employee

Photos

Reviews

Signed Forms

Application

Company

Forms

Handbook

Contacts

Tax Documents

Payroll, HR, Time, Employee

Solutions Include:

• Payroll Processing

• Payroll Tax Service – One State

• 401k Report

• GL Report/Service

• Work Comp Report

• Check Signing

• Check Stuffing

• Garnishments Processing - $5.00 per check

• Report Wizard

• Report Library

• Check Logo

• Labor Poster Service

• Document Storage– Company

– Employee

• Employer On the Go

• My Employer On the Go

– Tas

– Benefit Statements

– HR Reviews, Education, Training,

Tests, Property

– Employee Directory

– Employee Self Service• W2

• W4

• Banking

• Emergency Contacts

• Payroll & HR Calendar

Quote for Solution

• One Time Setup Fees –

– Payroll – No charge

– Per Payroll Fee:

Up to 3 Employees biweekly $35 Per Payroll

4 to 15 employees biweekly $49 Per Payroll

16 to 25 employees biweekly $62 per Payroll

W2 cost is $45 base and $4.50 per W2

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