New School Seminar
description
Transcript of New School Seminar
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New School SeminarNew School Seminar
Private Licensed Schools
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ContentsContents
• Foundations – Statute, Regs, and Memos• Board and staff roles• Form PDE-3775• Fees• Form PDE-1003• Facility• Type of Ownership• PDE-5004 Forms• School Name
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Contents ContinuedContents Continued
• Surety• Finances• Ethics Statement• Records Retention Agreement• PDE-340 Forms• Catalog• Enrollment Agreement• New Program Applications• Admissions Representatives
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HandoutsHandouts
• Regulations
• New School Application
• Internet Sites
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Legal AuthorityLegal Authority
• Statute
• Regulations
• Board Policy Memos
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Internet ResourcesInternet Resources
• Public Website: http://www.pde.state.pa.us/pls
• Financial Forms - ftp://ftp.state.pa.us/pub/PDE_PUBLIC/PLS Financial/
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Staff RoleStaff Role
• Determine if application is complete and acceptable for Board review
• Give school feedback with 10-day “cure” period
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Staff Staff
• Staff can answer questions and provide guidance and insight into Board requirements and standards.
• Staff cannot teach applicants to develop a syllabus, prepare basic financial statements, or operate the school.
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StaffStaff
• Ed Rech
• John Galganovicz
• Bob Kline
• (717)783-8228
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ConsultantsConsultants
• Accountant
• Attorney
• Educational/Administrative
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Role of BoardRole of Board
• Approve
• Approve Pending
• Defer
• Deny
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FeesFees
• $200 – This Mandatory Seminar
• $1500 – Application Fee
• $700 – Each Additional Program
• $500 – Site Visit
• $300 – Admissions Representatives
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PDE-3775PDE-3775
• Follow PDE-3775
• Use as a check sheet for submission
• Include in application
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PDE - 1003PDE - 1003
• Complete all information
• Must have valid mailing address and phone number.
• Fax and/or e-mail will speed communications
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PDE-1003 Red FlagPDE-1003 Red Flag
• Be sure the address, fax, phone number, and e-mail that you provide are active. Otherwise, important correspondence or communication about your application might not reach you!
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FacilityFacility
• Must have Certificate of Occupancy
• Floor plan with measurements
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Type of OwnershipType of Ownership
• Corporate registration from Department of State, Corporate Bureau
• Partnership agreement
• Personal financials if sole proprietorship
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School NameSchool Name
• Fictitious Name registration from Department of State Corporate Bureau unless the school name is exactly the same as the name of the corporation.
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PDE-5004 FormsPDE-5004 Forms
• Needed for each corporate officer
• 3 Letters of recommendation – one from a bank
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SuretySurety
• Surety Bond
• PTAF
• Irrevocable Administrative Trust
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Financial StatementsFinancial Statements
• All schools are required to submit financial All schools are required to submit financial documentation as a component of the license application documentation as a component of the license application (24 P.S. § 6507). (24 P.S. § 6507).
• The financial documentation is required in order to The financial documentation is required in order to demonstrate that the school has the financial solvency demonstrate that the school has the financial solvency that will be required to successfully launch the operation that will be required to successfully launch the operation and prevent negative consequences for students (22 Pa. and prevent negative consequences for students (22 Pa. Code § 73.53). Code § 73.53).
• Each application must include documentation that Each application must include documentation that demonstrates that the school is appropriately capitalized, demonstrates that the school is appropriately capitalized, that accurate assessments have been made regarding that accurate assessments have been made regarding operating costs, and that the individual, partnership, or operating costs, and that the individual, partnership, or corporation that owns the school is solvent and has the corporation that owns the school is solvent and has the financial capacity to support the operation.financial capacity to support the operation.
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Financials Con’tFinancials Con’t
• The Financial Review Committee reviews the financial The Financial Review Committee reviews the financial statements and supporting documentation before each statements and supporting documentation before each Board meeting. A license cannot be issued until the Board meeting. A license cannot be issued until the Financial Review Committee approves the financial Financial Review Committee approves the financial condition of the applicant school.condition of the applicant school.
• Submit Submit actualactual financial statements specific to the school financial statements specific to the school on the PDE-2006 form. This statement should be only on the PDE-2006 form. This statement should be only for the school site that is applying for licensure (i.e. stand for the school site that is applying for licensure (i.e. stand alone statement). The financial statements should not alone statement). The financial statements should not include other schools and reflect include other schools and reflect actualactual results. results.
• All financial documentation must be less than six months All financial documentation must be less than six months old on the Board meeting date at which the application old on the Board meeting date at which the application will be reviewedwill be reviewed
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Financial Reports for New School Financial Reports for New School ApplicantsApplicants
• PDE-2006
• Pro Forma
• Parent Company Financials
• Proof of Capital
* New School Financial Statements must be audited or reviewed
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PDE-2006PDE-2006
• Forms and instructions located at:Forms and instructions located at:ftp://ftp.state.pa.us/pub/PDE_PUBLIC/PLS%20Financial/
• A guide for the FRC to assess the financial strength and A guide for the FRC to assess the financial strength and solvency of a school / institutesolvency of a school / institute
• Measures the current condition and ability to operate in Measures the current condition and ability to operate in the future through:the future through:– Income Statement (page 1)- Revenue and ExpensesIncome Statement (page 1)- Revenue and Expenses– Balance Sheet (page 2) – Assets, Liabilities and Stockholder’s Balance Sheet (page 2) – Assets, Liabilities and Stockholder’s
EquityEquity– Disclosure Information (page 3) – Methodologies, Terms of Disclosure Information (page 3) – Methodologies, Terms of
Significant Notes, Parent Company Information, Pending Significant Notes, Parent Company Information, Pending regulatory/legal Issues and Explanationsregulatory/legal Issues and Explanations
– Key Indicators (page 4) – Individual program informationKey Indicators (page 4) – Individual program information
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PDE-2006 and GAAPPDE-2006 and GAAP
• All financial information must conform with All financial information must conform with Generally Accepted Accounting Principles Generally Accepted Accounting Principles (GAAP)(GAAP)– The common set of accounting principles, standards and The common set of accounting principles, standards and
procedures that companies use to compile their financial procedures that companies use to compile their financial statements. GAAP are a combination of authoritative standards statements. GAAP are a combination of authoritative standards (set by policy boards) and simply the commonly accepted ways (set by policy boards) and simply the commonly accepted ways of recording and reporting accounting information. of recording and reporting accounting information.
– Imposed on companies so that investors have a minimum level Imposed on companies so that investors have a minimum level of consistency in the financial statements they use when of consistency in the financial statements they use when analyzing companies for investment purposes. GAAP cover analyzing companies for investment purposes. GAAP cover such things as revenue recognition, balance sheet item such things as revenue recognition, balance sheet item classification and outstanding share measurements. classification and outstanding share measurements.
– Still Room for interpretation and different methodologies within Still Room for interpretation and different methodologies within GAAPGAAP
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Accrual AccountingAccrual Accounting
• Key concept of GAAP is Accrual Key concept of GAAP is Accrual AccountingAccounting– An accounting method that measures the performance and An accounting method that measures the performance and
position of a company by recognizing economic events position of a company by recognizing economic events regardless of when cash transactions occur. The general idea is regardless of when cash transactions occur. The general idea is that economic events are recognized by matching revenues to that economic events are recognized by matching revenues to expenses (the matching principle) at the time in which the expenses (the matching principle) at the time in which the transaction occurs rather than when payment is made (or transaction occurs rather than when payment is made (or received). This method allows the current cash inflows / received). This method allows the current cash inflows / outflows to be combined with future expected cash inflows / outflows to be combined with future expected cash inflows / outflows to give a more accurate picture of a company's current outflows to give a more accurate picture of a company's current financial condition. financial condition.
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Memo #72Memo #72
• Board requires audited or reviewed financial statements for new school applications.
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FinancesFinances
• PDE-2006 – ACTUAL, REAL, income statement and balance sheet
• MUST balance
• May not be completely zeros
• At least 4 months of operating capital
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Financials Con’tFinancials Con’t
• Financial statements provided for new school Financial statements provided for new school applications are expected to meet the following applications are expected to meet the following criteria:criteria:– A current ratio of 1:1 (current assets to current A current ratio of 1:1 (current assets to current
liabilities)liabilities)– A positive net worth, accompanied by a reasonable A positive net worth, accompanied by a reasonable
debt to equity ratio debt to equity ratio – Net profit in one of the last two fiscal yearsNet profit in one of the last two fiscal years– Sufficient cash reserves to support 4 months of Sufficient cash reserves to support 4 months of
operation without depending on tuition revenue.operation without depending on tuition revenue.– Accurate and realistic reflection of the revenue and Accurate and realistic reflection of the revenue and
expenditures anticipated prior to opening and the first expenditures anticipated prior to opening and the first 12 months of operation post opening.12 months of operation post opening.
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PDE - 2006PDE - 2006
• ftp://ftp.state.pa.us/pub/PDE_PUBLIC/PLS Financial/
• Both form and instructions on this site
• Use Annual Form
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Owner FinancialsOwner Financials
• All applicant schools must demonstrate the All applicant schools must demonstrate the financial solvency of the owners. If the school is financial solvency of the owners. If the school is a proprietorship (single owner) or partnership, a proprietorship (single owner) or partnership, the application should include personal financial the application should include personal financial statements. If the school is owned by a statements. If the school is owned by a corporation, corporate financial statements must corporation, corporate financial statements must be provided. Audited or reviewed statements be provided. Audited or reviewed statements are appreciated, but not required, unless the are appreciated, but not required, unless the committee specifically requests an audited or committee specifically requests an audited or reviewed statement.reviewed statement.
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Evidence of CapitalEvidence of Capital
• 4 Months of Operating Costs
• In Name of School
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Pro-Forma ProjectionPro-Forma Projection
• Projection for first 12 months of operation
• Be realistic – include all possible expenses
• Include the costs of advertising
• Include attrition
• It is ok if there is no profit immediately
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Proforma ProjectionsProforma Projections
• Provide a pro-forma financial statement that accurately Provide a pro-forma financial statement that accurately and realistically reflects the revenue and expenditures and realistically reflects the revenue and expenditures anticipated prior to opening anticipated prior to opening andand the first 12 months of the first 12 months of operation (post opening.) This pro-forma statement operation (post opening.) This pro-forma statement should include all costs associated with the operation of should include all costs associated with the operation of the school, including facilities, utilities, advertising, the school, including facilities, utilities, advertising, printing costs, staffing, staff benefits, insurance, and all printing costs, staffing, staff benefits, insurance, and all other expenses. Failure to accurately anticipate other expenses. Failure to accurately anticipate reasonable expenses or unrealistic revenue projections reasonable expenses or unrealistic revenue projections can result in deferral or denial by the Financial Review can result in deferral or denial by the Financial Review Committee. Committee.
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Financial SummaryFinancial Summary
• PDE – 2006 is the PLS form for your income statement and balance sheet – this is real
• Proforma – required projection of income and expenses for first year
• Capital – evidence of capitalization of school• Parent financials
* New School Financial Statements must be audited or reviewed
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Additional HelpAdditional Help
• Consult an accountant
• Attend quarterly financial seminar– April 15, 2009– July 15, 2009– October 21, 2009
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Disclaimer re FinancialsDisclaimer re Financials
• Information is provided to guide schools Information is provided to guide schools and applicants in financial planning and and applicants in financial planning and financial reporting. However, the Board financial reporting. However, the Board and the Financial Review Committee may and the Financial Review Committee may look at any other indicator to determine look at any other indicator to determine stability and are not limited to or bound by stability and are not limited to or bound by the criteria outlined in this presentation.the criteria outlined in this presentation.
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Ethics StatementEthics Statement
• Serious commitment
• Read carefully and comply
• Signed by owner or director
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Records RepositoryRecords Repository
• Should be with another Private Licensed School in Pennsylvania
• Must have signature for both schools
• No fee may be required after closure
• Service fees may be charged to students
• Samples
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Sample Repository –NO FORM PROVIDED
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PDE-340 FormsPDE-340 Forms
• For Director
• For Acting Directors
• Complete all sections
• Include documentation of qualifications
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PDE-3774PDE-3774
• Check sheet for Enrollment Agreement
• Blue
• Include with application
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Enrollment AgreementEnrollment Agreement
• Name and address of school
• Student name
• Program title
• Hours
• Document awarded at graduation (Certificate or Diploma)
• Costs
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Enrollment Agreement Con’tEnrollment Agreement Con’t
• Terms of Payment• Starting date• Cancellation and termination policy• Refund policy• Placement assistance if provided
– Placement is not guaranteed
• Complaint procedure– MUST include title of school official and address for
PLS
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Enrollment Agreement Con’tEnrollment Agreement Con’t
• Student’s signature must confirm that they have received the catalog
• Student’s signature must confirm that they have received a copy of the enrollment agreement
• Effective date (not binding until also signed by school official)
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Enrollment Agreement Con’tEnrollment Agreement Con’t
• Student (and parent or guardian if under 18) signature
• Pagination
• Completely consistent with catalog
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PDE-4627PDE-4627
• Check sheet for Catalog (Goldenrod)
• Include with application
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CatalogCatalog
• Name and address of school• Date of publication• Admission requirements• Objectives• Clock Hours• Course list• Facilities description• Student behavior policies
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Catalog ContinuedCatalog Continued
• Grading System
• Requirements for graduation
• Tuition
• Refund policy
• Job placement assistance – if provided– No guarantee of placement
• Student Services – if provided
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Catalog ContinuedCatalog Continued
• School calendar
• Transfer of Credit Disclaimer– No guarantee that these credits will transfer to
another institution
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BREAKBREAK
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New Program ApplicationNew Program Application
• $700 Fee
• PDE-3003
• PDE-3004
• PDE-279 forms
• Externship information
• Catalog
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PDE-3776PDE-3776
• Instruction sheet for new programs
• Include with application
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PDE-3003PDE-3003
• Signed• Number of hours• Tuition, registration fees, other fees• Diploma vs. Certificate• Start date – after Board meeting• Student:Equipment Ratio• Entrance Requirements compared to reading
levels of texts• Employment opportunities
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Clock HoursClock Hours
• Insufficient hours of instruction is a common problem for new schools
• Do not assume that students will have a foundation in the field if it is not required for admission
• Do not assume that all students are highly disciplined with independent learning skills
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Diploma vs. CertificateDiploma vs. Certificate
• Diploma for a program – multiple courses
• Certificate for a course – one course on PDE-3004, one syllabus
• Guideline – Not absolute
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DegreeDegree
• New programs can not be degrees
• AST or ASB degrees require additional approval by the Secretary of Education after approval by the PLS Board at the diploma level
• Approval to award any degree above the AST or ASB requires authorization as a college
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Certificate vs. CertificationCertificate vs. Certification
• Certificate – a credential awarded by the school upon successful completion of a course
• Certification – a credential awarded by a 3rd party after meeting established criteria – usually involves passing a 3rd – party exam
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Accreditation vs. LicensureAccreditation vs. Licensure
• License – permission to operate
• Accreditation – by an authorized private agency that confirms that the education and practice meets certain quality standards.
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Entrance RequirementsEntrance Requirements
• Ensure that all students admitted can reasonably be expected to handle the curriculum– Reading level for admission compared to reading
level of texts– Consider a reading test– High School diploma or GED does not demonstrate
12th grade reading ability
• Ensure that all students who meet admission criteria can reasonably expect to qualify for employment after completing the training.
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A + B = CA + B = C
A = admission requirements
B = curriculum
C = job ads
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Occupational ObjectivesOccupational Objectives
• Narrative or list of the major occupational skills the student will learn
• Do not list the jobs in this section – list the skills
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Employment OpportunitiesEmployment Opportunities
• List the job titles for which graduates should be qualified
• Provide the list of job titles on the PDE-3003 form or attached
• In addition, provide evidence of job opportunities
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Job adsJob ads
• Demonstrate that there are jobs for graduates• Local jobs or provide a disclaimer regarding
relocation• May not require any skills, experience, or
credentials that are not either required for admission or taught in the program.
• No jobs that require degrees– Unless required for admission
• No jobs that require job experience– Unless required for admission
• No jobs that don’t require any training
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Job Ads ContinuedJob Ads Continued
• Include actual ad – do not retype information
• Show name of employer
• Include entire ad – not just a list of openings
• Letters from prospective employers can be used
• Occupational Outlook is not sufficient
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SitesSites
• Provide the address if you will offer this program at an approved branch
• This is very uncommon for new schools
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Remote FacilitiesRemote Facilities
• If part of the training is provided at another site, list the address.– Driving range, clinical facility, lab
• Site visit required
• $500 additional site visit fee.
• Remote vs. Externship Site
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EquipmentEquipment
• List all equipment
• Give specifications – model number, speed, etc.
• Provide student to equipment ratio – best to list for each item of equipment
• If there is any doubt about whether it is equipment or supplies, list it.
• Usually requires an attachment
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InstructorsInstructors
• List all instructions and assigned courses on PDE-3003 or attachment
• Do not simply refer to PDE-279’s
• Ensure that PDE-3003 list matches PDE-279 forms
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PDE-3004PDE-3004
• Credit Conversion
• Course List– Check Math on Hours and Credits
• Signed
• Syllabus for EACH Course
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SyllabiSyllabi
• One Syllabus per Course
• All elements required in each syllabus
• Must be detailed
• See sample
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SAMPLE SYLLABUSNO FORM PROVIDED
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Elements of Each SyllabusElements of Each Syllabus
• Course Title
• Objectives
• Course description
• Course schedule
• Instructor
• Pre-requisites (differ from admissions requirements)
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Elements of Syllabus Con’tElements of Syllabus Con’t
• Policies
• Specific policies on make-up work and whether there is any charge for make-up work
• Grading System
• Author/Title/Publisher of Texts and Software
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Elements of Syllabus Con’tElements of Syllabus Con’t
• Course outline– (DETAILED)
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Syllabus ReminderSyllabus Reminder
• Don’t forget to include a syllabus for the externship, if the program has an externship
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Sample Reading LevelsNO FORM PROVIDED
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Reading Levels of TextsReading Levels of Texts
• Grade Level of each text
• Method used to determine– Publisher– Reading level specialist– Flesch-Kincaid
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PDE-279 FormPDE-279 Form
• Complete all sections
• Sign
• Complete section 6
• Provide documentation
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ExternshipsExternships
• Site Selection Criteria
• Sample Written Agreement
• Site Responsibilities
• School Responsibilities
• Evaluation Instrument
• Include externship syllabus in syllabus section
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Externship HoursExternship Hours
• Enough to ensure appropriate experience to compete for jobs
• Enough to ensure compliance with certification requirements
• Do not turn the program into on-the-job training
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Externship SupervisionExternship Supervision
• The school must supervise the externship
• The externship site should be visited
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Externship SitesExternship Sites
• Highly recommended to provide letters from prospective sites to demonstrate that sites are available for all students in each cohort
• Highly recommended to have a procedure for student to select own site, but not to require students to find their own site
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Externship Evaluation RubricExternship Evaluation Rubric
• Specific to professional skills
• A tool for site to use to formally evaluate student extern for the school
• Provide sample
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Admission RepresentativesAdmission Representatives
• Required if students will be asked to sign enrollment agreement anyplace off the school property
• Not required for marketing – education fairs, etc – if students do not enroll
• PDE-5006
• $300 Fee
• Must be renewed annually
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Cure PeriodCure Period
• Cure Letter
• Cure Memo – see sample on public site
• Deadlines
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SubmissionsSubmissions
• All applications must be in by deadline
• All revisions must be submitted to staff by deadline in “cure letter”
• Do not bring revisions to the Board meeting
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Board Meeting and Deadlines 2009Board Meeting and Deadlines 2009
Meeting Dates Submission Deadlines
February 12, 2009 December 5, 2008
May 14, 2009 March 6, 2009
August 13, 2009 June 5, 2009
November 19, 2009 September 11, 2009
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Common PitfallsCommon Pitfalls
• Organize application– Tabs for each section
• Prepare a neat, readable application– Avoid handwriting, keep copies readable
• Ensure that any changes are incorporated consistently throughout the application
• Be consistent throughout
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Additional Common PitfallsAdditional Common Pitfalls
• If experienced in another state, do not use their forms or procedures – take the time to learn the PA requirements.
• Do not expect the Board to change requirements.