Pub. 1 2011-2012 Issue 2

24 B e aware of funding timelines. In addition to the state funding that schools rely on, there are federal Title and IDEA funds that schools build into their bud- gets each year. The caveat with these funds is that they will not be available for use on the first day of school. In fact, in most cases, these funds will not be available for use until the fiscal year is halfway over. As such, it is important to analyze your cash flow independent of these funds. If you are planning on hiring staff using these funds, it is imperative that your cash balance can carry these expenses until the corresponding revenues are available for reimbursement. Also, using the federal government’s “sup- plement, not supplant” rules, any materials, supplies, or equipment a school is planning on purchasing with these funds should be extra items, not essential items. This will allow the school to delay, as necessary, the purchase of these items, while ensuring that the school will meet the needs of its students and various programs as required. How to get the best financing for your charter school. When faced with multi-million dollar real estate and financial decisions, you need attorneys with the experience, integrity and ability to get your school the best possible deal. Our firm has represented over 30 Utah charter schools who have borrowed more than $350 million, helping each one get the best price and lowest cost financing available. Our firm has the experience to present all available options so your board can be confident they made the best decision in an arm’s length transaction. Please contact Joel Wright at jwright@kmclaw.com or 801.426.2100 for a free consultation on your school’s real estate situation. www.kmclaw.com C reate and update cash flow reports monthly. While this may seem like a big “No Duh,” it is an area often forgotten or mismanaged. Doing a monthly cash flow projection reminds the school’s board, financial team, and administrative team of previously planned cash outlays, while a statement of cash flows reports how cash was used in the previous period, as well as pointing out any fluctuations. Cash flow projection updates are also extremely valuable in the planning process that continues during the school year. For instance, updating the school’s yearly cash flow projection as the October 1st student count nears helps the school anticipate how changes in the student population will affect future cash amounts received. In addition, older schools with debt covenants will have an easier time making sure they meet the cash require- ments within the covenants when they monitor cash continuously throughout the year. All charter schools create a budget, but not all schools go the extra mile and analyze cash flow. The old idiom, “Cash is King,” is as true in the charter school world as it is in any other business. When a charter school manages its cash flow, it is the students and the vision of the school that ultimately win. ...continued from page 16 5373 S. Green Street, 4th Floor, Salt Lake City, UT 84123 Phone: (801) 495-3000 Toll Free: (800) 999-9789 www.dentalselect.com www.sealantsforsmiles.org $80,000,000 Is a conservative estimate of how much Sealants for Smiles has saved Utah families over the last four years. By providing preventive services, Sealants for Smiles minimizes the need for additional care that Utah’s children would have needed had they not been treated. As the Title Sponsor, Dental Select extends its congratulations to the growing success of the Sealants for Smiles programand its participating Utah school districts. SALT LAke CITy SChooL DISTrICT GrAnITe SChooL DISTrICT JorDAn SChooL DISTrICT MUrrAy SChooL DISTrICT DAvIS SChooL DISTrICT TooeLe SChooL DISTrICT CAnyonS SChooL DISTrICT