Pub. 9 2019-2020 Issue 1

9 It seems possible, perhaps even likely, that the State Board, the Legislature or char ter school authorizers will mandate financial trainings. that they spend those revenues only on expenses that fit within the restrictions established by the funder (federal govern- ment, state legislature, state board of education, and so on). LEAs with multiple campuses must track those expenditures separately for each campus. As I’ve examined this issue, and the potential consequences of not getting it right, it’s clear that each LEA needs to consider at least these two questions. • Which accounting software should we use? • How well do our business manager, the director/ principal and board members understand what docu- mentation and procedures they need, and how it must connect to the LEA’s accounting systems? To get a better grasp on these issues, UAPCS distributed a survey to each charter school. That survey asked schools to describe which accounting software package they use. Unsurprisingly, many schools use a QuickBooks product, often the less expensive option. In talking with folks at the State Board of Education, it is clear that LEAs are likely to have trouble complying with R277-113 if they: a) Use a QuickBooks product that is b) Something other than the Enterprise edition. (LEAs that use robust accounting software like Intact, Pelorus or NetSuite are likely to be fine.) Some LEAs using QuickBooks editions other than Enterprise edition have tried to supplement QuickBooks with spreadsheets. Because these spreadsheets are necessarily outside the account- ing database, it is easy for those spreadsheets to inadvertently contain duplicate or otherwise inconsistent reimbursement requests. Even where an LEA spent the money appropriately, if an LEA’s reimbursement requests do not contain appropriate documentation, LEAs may have to repay restricted funds out of its unrestricted funds. The second question demands that key LEA personnel have appropriate training. Business managers and directors need to know the intimate details about which flows of money are restricted and which are unrestricted, how the LEA uses those flows, what documentation and procedures the LEA needs to demonstrate that it uses those flows appropriately, and how to ensure that the documentation and procedures are consistent and appropriate. LEA board members need to make sure that they adopt appropriate policies that ensure their administrative team will fulfill state accounting requirements. In addition, they need to adopt policies and procedures which, as a matter of course, reveal gaps or problems in how well the administration manages the LEA’s finances on a day-to-day basis. It seems possible, perhaps even likely, that the State Board, the Legislature or charter school authorizers will mandate financial trainings. We are not waiting for that mandate. As part of our training and mentoring grant, which was provided by the State Charter School Board, UAPCS offers training for administrators and board members on the accounting and reporting requirements. In addition, it is very important that business managers actively participate in the finance trainings the State Board provides to each LEA.