October 12, 2016 Special Meeting Agenda Golden Valley Charter Schools Special Meeting of the Board of Trustees 9601 Lake Natoma Drive Orangevale, CA 95662 1. Call to Order 5:30p.m. (J. Hanafee) 2. Roll Call 5:30p.m. Board Members: John Hanafee, Chair, Ally Jakubicka, Vice Chair, Jodi Begley, Secretary, Sarah Sullivan, Zachary Phillips, G anna Burke, Joanne Ahola, Becky Page, Ryan Sutton. 3. Approval of Contracted Chief Business Officer (CBO) Services 5:30 p.m. (J. Hanafee) Action: Shall the Board approve contracted CBO services through CSMC? 4. Recitation of the Motto of the Social Ethic 5:45 p.m. The healing social life is found When in the mirror of each human soul The whole community finds its reflection, And when, in the community, The virtue of each one is living. 5. Adjournment of the meeting 5:46 p.m. (J. Hanafee)
Back Office and CBO Service Proposal for: Golden Valley Charter Schools 9601 Lake Natoma Drive Orangevale, CA October 10th, 2016 CSMC 40925 County Center Drive Temecula, CA 92591 www.csmci.com (888) 994- CSMC
About CSMC We at CSMC are excited about the potential partnership with Golden Valley Charter Schools. We look forward to a pro-active relationship, one in which we become part of the family and staff of the schools. We believe we have much to add to this partnership, and we would be honored to serve your schools. For twenty years, charter schools have been at the forefront of education reform, and the charter school movement as a whole can be considered a great success. CSMC was founded to support educational and community experts, and ease the maturity curve and growth phase of charter schools by providing them with a range of costeffective, high-quality back-office business services. CSMC is the largest provider of back office services to charter schools in the nation, with more than 90 employees currently serving 200 schools. CSMC is committed to empowering charter schools, and their leaders, to create and lead successful, innovative charter schools, and we have the experience, personnel and resources to make it happen. With our background in school development, budgeting, operations, and financial management, CSMC can free you to lead your team toward your core mission: educating your students. CSMC s history echoes the same personal story upon which many charter schools are founded: President and founder Sandro Lanni was looking for a better school for his own children and decided to help start a charter, which was then a new concept in public schools. The leaders of this new charter school needed financial and business support, so Sandro utilized his professional experience and passion for the charter school movement and launched an organization to provide charter school financial services at affordable rates. Our innovative and experienced team is equipped to help you with all of your school back office needs. We know that offering unrivalled quality of service and outstanding value is not enough. We are often requested to deliver challenging out of the box solutions to our schools, while never ceasing to go the extra mile in pursuit of funding opportunities, cost savings, and innovative opportunities to help your students. The CSMC Impact v Serving more than 200 charter schools v Over 55,000 K-12 students enrolled in CSMC supported schools v 2,000 full time teachers receiving payroll and benefit support through CSMC v Thousands of training hours presented at school sites, regional meetings, conferences and for thought leaders and associations CSMC Proposal for Golden Valley Charter Schools 2016-2018 1
Proposal Contents About CSMC... 1 Proposal Contents... 2 Chief Business Officer Services... 3 Back- Office Services... 3 Day- to- Day Operational Support... 3 School Business Manager... 3 Account Manager... 4 Internal Reporting and Budgeting... 4 Fiscal Back Office Support... 5 External Authorizer & Compliance Reporting... 6 Payroll & Human Resources... 7 Charter Vision Key Features... 8 Facilities - Acquisition, Finance, Lease, Planning... 12 Financing - Loan Procurement... 12 Insurance - Cost Management... 12 Development and Grant Administration... 12 CSMC References... 14 CSMC Employee Snapshot... 15 School Profile:... 17 CSMC Services Included in this Proposal:... 18 Proposed Service Period:... 18 Summary of Pricing for Total Services:... 18 CSMC Proposal for Golden Valley Charter Schools 2016-2018 2
Detailed Description of CSMC Services Chief Business Officer Services CSMC will provide Golden Valley Charter Schools with high- level school financial operations, including: Annual financial planning with all revenue & expense projections Budget development, mid- year revisions, fiscal and cash flow analysis Reporting school fiscal outlook to board of directors Evaluation of cash needs and lending options Completion and submission of state and federal funding applications Completion of compliance reports Back- Office Services While the total depth of services CSMC provides its schools will be explained throughout the service proposal, the basic tenets of back office support include: Direct access to your own CSMC School Business Manager and Account Manager Total fiscal support including authorizer communications, general ledger, accounts receivable/payable, payroll, audit, and budgeting support 24/7 access to all your pertinent fiscal reports via CharterVision State and Federal reporting to assure all the maximization of revenues Ensuring accuracy in your charter school s fiscal situation, projections, and compliance reporting Day- to- Day Operational Support With offices throughout California and serving over 100 schools in the state, CSMC provides your school a robust team with expansive charter school expertise. CSMC pairs your school with at least two high level, experienced financial professionals to support your day- to- day needs, while also creating access to the entire CSMC team for direct and indirect training and support. Those charter school back office experts are: School Business Manager CSMC s School Business Manager (SBM) serves their assigned school with all of the high- level school financial operations. Some key SBM duties include: Annual financial planning with all revenue & expense projections, Budget development, mid- year revisions, fiscal and cash flow analysis Reporting school fiscal outlook to Charter Board and Authorizer CSMC Proposal for Golden Valley Charter Schools 2016-2018 3
Evaluation of cash needs and lending options, Completion and submission of state and federal funding applications Account Manager CSMC s Account Manager (AM) is your day to day accounting expert supporting your SBM in all fiscal reporting and processing. Some key AM duties include: Prepare and maintain accurate financial reports (general ledger, etc.), Accounts payable services i.e. reviewing and auditing vendor invoices, preparing check requests, monitoring financial activities, aligning monthly spending with budgets, and maintaining vendor files, Perform attendance accounting function, tracking monthly attendance and reporting information to sponsoring district, All other needed day- to- day accounting functions Internal Reporting and Budgeting In today s challenging economic times, it is crucial that the budget is constantly reviewed and modified as needed; therefore, there are no limits to the number of budget revisions that may be requested by Golden Valley Charter Schools. Cash flow projections and Budget to Actual reporting are samples of monthly reporting provided to Golden Valley Charter Schools. Internal Monthly Reporting: CSMC will create and provide to Golden Valley Charter Schools monthly reports including: Revenue & expense to budget forecasting Budget to actual income statement Balance sheet Cash flow projections Fiscal analysis and commentary as applicable CSMC will provide expert budget versus actual interpretation flagging necessary changes, adjusting assumptions and forecasts throughout the year, and warning about potential future cash flow issues. Budgeting/Cash Flow: CSMC, collaboratively with Golden Valley Charter Schools, shall develop and modify both current and future year budgets and cash flow models. All state mandated development and adoption timelines shall be incorporated into the planning process. At least one budget revision shall occur each year upon certification of the P1 report. Other modifications are to be performed as necessary or requested by Golden Valley Charter Schools, including for strategic planning purposes. Board Meeting Support CSMC Proposal for Golden Valley Charter Schools 2016-2018 4
CSMC s School Business Manager will be available as requested for Golden Valley Charter Schools board meetings to present financial reports and/or answer financial questions (by teleconference or in person). There is no limitation to the number of times Golden Valley Charter Schools may request the School Business Manager s attendance on average, CSMC s clients tend to request the School Business Manager s presence every other month. Additionally, CSMC will provide your board of directors training and access to our Charter Vision system. This will allow the board to retrieve financial statements and board reports 24 hours a day, 7 days a week. Training CSMC trains appropriate personnel on accounting procedures and practices designed to ensure accurate record keeping. Fiscal Back Office Support Complete Bookkeeping Support Utilizing an enterprise- quality bookkeeping system from Sage, one of the country s largest bookkeeping software companies, CSMC can provide a complete bookkeeping solution to Golden Valley Charter Schools. Specifically, CSMC will: Chart of Accounts Review GVCS Standard Account Code Structure (SACS) and Generally Accepted Accounting Principles (GAAP) compliant Chart of Accounts. General Ledger Maintain SACS and GAAP compliant General Ledger. CSMC will modify, revise, and incorporate more or less detail in account code structure as requested by Golden Valley Charter Schools. Accounts Receivable Monitor receipt of revenues tied to budget and expected entitlements. Includes all collection activities necessary to obtain past due funding. Accounts Payable (AP) Process all vendor invoices and payments. Includes utilizing GAAP system for verification, approval, and payment. System includes utilization of AP batch approvals, and check register reviews. Includes preparation of all 1099s. Fund / Restricted Accounts Track any legally- restricted revenues (e.g. Title I) and/or other revenues client wishes to separately track (e.g. parent fundraising) and corresponding expenditures via unique account coding to yield separate net income / loss per account Fixed Assets and Inventory Control Create and maintain asset tracking and depreciation schedule system which is integrated into the General Ledger. Purchasing: Vendor selection CSMC provides recommendations of vendors based on its experience with vendors around the state and country. Purchasing assistance on big- ticket items CSMC can assist the school leader CSMC Proposal for Golden Valley Charter Schools 2016-2018 5
in its purchase or leasing of big ticket items such as portables. Associated Student Body (ASB) Bookkeeping If your school has such student- specific funds, CSMC will maintain separate ASB accounts and reconcile them into your larger bookkeeping structure. External Authorizer & Compliance Reporting One of the most important factors for determining the continued operation of a charter school is ensuring that your school stays in compliance with all local, state, and federal regulations. Charter school renewals and federal funding opportunities often rely on the accuracy of your student data. Going through and filling out various state reports can be very cumbersome and quite a headache if you don t know how to properly record and report your student data. CSMC understands the complexity in trying to learn multiple systems and making them all work for you. CSMC s experts can work with you to put together a well- configured system to guard your reports against errors. CSMC performs regular diagnostics to catch any potential problems as soon as possible, ensuring the accuracy of those Attendance and Enrollment reports all- important to school funding. Preparation and data submittal of required budget reports in SACS format: Includes 1st Interim, 2nd Interim, next year proposed, and unaudited actual to district, county and state entities. Attendance includes preparation and data submittal of Period 1 (P1), Period 2 (P2), and annual (P- Final) attendance reports to district, county and state entities. Audit CSMC can act as the lead point of contact with Golden Valley Charter Schools auditor and will work with the auditor through finalization of the audit report. Categorical program budgeting and oversight separate fund tracking for all restricted or categorically relevant programs. CBEDS Assist schools in the completion of their School Information Form for Independently Reporting Charter Schools CBEDS annual survey. National School Lunch Program (NSLP) If your school participates in this program, CSMC will assist with NSLP bookkeeping, submission of monthly food program reimbursement forms and completion of required annual reports. General Reporting 1 includes any necessary grant, award, program, state, county, and district report related to financial, or operating activity. 1 This section does not apply to CALPADS data reporting. CSMC Proposal for Golden Valley Charter Schools 2016-2018 6
Payroll & Human Resources Payroll setup Based upon the payroll information from Golden Valley Charter Schools, CSMC will enter each full- and part- time employee into an enterprise- class payroll service (e.g., Pay Bridge), and ensure each is paying appropriate withholdings, taxes and other deductions. Payroll processing Includes updating, maintenance, and regular, emergency and special payroll entry, as requested by Golden Valley Charter Schools. Payroll processing includes all of the following: Prepare and maintain annual payroll schedule and calendar Complete STRS and PERS reporting through the County Office of Education. 2 Voluntary deductions (e.g. 403(b)) Distribution of pay warrants and direct deposit administration Preparation and distribution of W2 s Supporting in all State Disability, Workers Compensation, or Unemployment Insurance claims Salary adjustments Verify budget numbers, dates and rates of pay Process Exit Forms (resignations, terminations, etc.) CSMC provides clients with template employee files and procedures to help ensure compliance with state and federal requirements regarding Live Scan procedures, TB Test information, and/or credential verification information. CSMC provides schools with non- legal, business advice on employment contracts and employee handbooks and their business implications. Health & Wellness Benefits service and administration CSMC will act as the bookkeeping liaison for workers compensation and Health and Welfare policies. CSMC will assist in the selection of insurance service providers, emphasizing selecting a provider that will provide high value support to the charter school. 2 Please note that some Counties or Districts charge a fee to charter schools to transmit STRS and PERS information to the STRS and PERS systems. If the county or district charges such a fee, Golden Valley Charter Schools will be responsible for paying this fee directly. In addition, the payroll company charges a monthly fee that is paid separately. CSMC Proposal for Golden Valley Charter Schools 2016-2018 7
CharterVision.net is CSMC s easy to use online portal giving each school 24/7 access to their financial standing and reports. Charter Vision has your school s real time detailed financial metrics and reports, shared document templates, latest announcements, and upcoming deadlines. Every financial report needed to lead a cutting edge charter school is available at the tip of your fingers. Charter Vision Key Features 1. Real- Time Financial Report Access Get 24/7 access to your school s vital financial reports in real time. Track accounts receivable and payable, view paid invoices, revenue and expenses by category, cash flow projection and more. 2. Compliance Calendar Never miss a state- reporting deadline again! On CSMC s Compliance Calendar, you can view your charter school s annual state and federal reporting calendar, with linked information for greater detail, assignment of duties, and stored documents for evidence of submission. 3. Subscriptions Don t have time to log in to Charter Vision? Simply want reports delivered to your e- mail box at a time you choose? With Charter Vision, you can set up subscriptions to have all Charter Vision reports delivered to your e- mail box as often as you would like. 4. Customizable Home Page You can now customize the home page in a way that works for your specific interest. Interested in Expenses Year to Date? Choose the Expenses Year to Date widget for your home screen. From Revenue to Budget to Projected Net Income, mix and match the financial widgets to fit your needs. 5. Sorting reports by parent organization or by individual schools If your organization leads more than one charter school, often it can be challenging to get network wide or individual school reports. Charter Vision allows you do sort through every school in your organization with the ease of a drop down selection. No more searching through multiple files, Charter Vision is your one stop shop. 6. Fiscal Transparency Like No Other Charter Vision is not just for your school leader or business manager; all key stakeholders can get up to date access to your school s financial data. Charter Vision is free to CSMC clients, so key staff members, board members, auditors, or anyone you decide can each have their own unique logon. CSMC Proposal for Golden Valley Charter Schools 2016-2018 8
Charter Vision Financial Dashboard 1. Customizable dashboard with all your favorite reports. 2. Active widgets that allow the user to dive deeper in any desired financial report. 3. Key reports include the: a. Financial Health b. Recent Expenses c. Expenses by Category d. YTD Reports e. Net Income/Loss f. Book Balance Charter Vision Student Data Page 1. Customizable widgets that allow for only the information you want 2. Key reports include: a. Frequently absent students b. Absence financial impact c. Student demographic totals d. LCFF & Special Program eligible totals CSMC Proposal for Golden Valley Charter Schools 2016-2018 9
Charter Vision Compliance Calendar 1. Key due dates for all state and federal compliance reporting 2. Visible assignment of reporting duties & responsibilities 3. Links to the corresponding state or federal programs for more detailed information 4. Downloadable access to all completed reporting documents such as CALPADS, Attendance Reports, and Unaudited Actuals CSMC Proposal for Golden Valley Charter Schools 2016-2018 10
Charter Vision Financial Reports Page 1. 24/7 Real- time access to all your school s financial reports 2. Sort reports by total Charter Management Organization or by individual school sites 3. Popular reports include: a. Actual to Budget Summary b. Expenses by Category c. Income Statement d. Revenue by Category e. Restricted Funds Tracking f. Check Register CSMC Proposal for Golden Valley Charter Schools 2016-2018 11
Facilities - Acquisition, Finance, Lease, Planning CSMC has been a leader in the facilities and facilities finance advice space for most of its 14 years of existence. We have advised dozens of clients on their buildings or prospective buildings, and prefer to be closely involved in the build out process to offer the best advice on affording and planning your build out. Our facilities finance division has experienced lenders who provide unbiased, independent advice on what is best for your school. In addition, CSMC has assisted many schools to identify, acquire or lease, and build out their sites. On the financing side, we assist in identifying, evaluating and comparing traditional loans such as: Construction Loans Permanent Loans, including New Markets Tax Credits and Bond Financing Leasehold Improvement Loans Financing - Loan Procurement CSMC works with multiple lenders to ensure its independence and your lowest costs. We never work with lenders for a fee, as we believe it compromises the school s ability to get the best rates. There are three kinds of lenders, and with each of category of lender comes certain criteria, benefits and challenges. Receivables financing companies Bond issuers Banks lines of credit CSMC is committed to finding your school the best and lowest cost solution. Insurance - Cost Management CSMC has worked with and continues to work with multiple insurance companies. We do this to ensure your costs are the lowest they can be, while still protecting you and your school and employees. CSMC is often in the position with new school clients to find them savings in their annual insurance bills. We provide an annual insurance audit as part of our service to ensure your school is keeping its costs low and passing along the savings to the classroom. Development and Grant Administration CSMC has been managing grants as part of its back office support since its inception. We work closely with your school and its grantors to ensure absolute compliance. On the reporting side, our staff ensures that all reporting is completed accurately and on time, for any grant, award, program, state, county, and district report related to financial or operating activity. CSMC Proposal for Golden Valley Charter Schools 2016-2018 12
CSMC Proposal for Golden Valley Charter Schools 2016-2018 13
CSMC References CSMC knows that choosing a business back office provider like CSMC is an important decision. Below is a list of CSMC supported charter schools, name of school contact, brief school description, and phone number. The O Farrell Charter School K- 12 Charter School 6130 Skyline Drive San Diego, CA 92114 CSMC client since 2012 Museum School K- 8 Charter School 211 Maple Street, San Diego CA 92103 CSMC client since 2011 Bella Mente Montessori Academy K- 8 Charter School 1737 W Vista Way, Vista, CA 92083 CSMC client since 2011 Community School for Creative Education K- 8 Charter School 2111 International Blvd. Oakland, CA 94606 CSMC client since 2014 Innovations Charter School K- 8 Charter School 10380 Spring Canyon Road, San Diego, CA CSMC client since 2010 McGill School of Success TK- 4 Charter School 3025 Fir Street, San Diego, CA 92102 CSMC client since 2014 Jonathan Dean Executive Director (619) 263-3009 Phil Beaumont Director (619) 236-8712 Erin Feely Executive Director (760) 621-8948 Dr. Ida Oberman Executive Director (510) 686-4131 Christine Klugen Director (858) 271-1414 Sobeida Fuentes Principal/CEO (619) 239-0632 Back Office Services Data Assessment Support PowerSchool Support Back Office Services Back Office Services Back Office Services Back Office Services Data Assessment Support PowerSchool Support Back Office Services CSMC Proposal for Golden Valley Charter Schools 2016-2018 14
CSMC Employee Snapshot Sandro Lanni, CSMC Founder & CEO Sandro Lanni became involved in the charter school movement in 1997 when he began the process of writing a charter petition as a committed parent, and ultimately opening a charter school in Temecula, Ca. The school Temecula Preparatory School currently in its 13 th year, serves 900+ students in grades K- 12. Mr. Lanni served on its Board of Directors for 4 years. His professional experience includes purchasing, accounting, and management experience at various manufacturing and services firms. Upon finishing the process of getting a charter approved as a parent, he saw a need in providing financial and management services to charter groups who otherwise had little or untenable options for the provision of services. CSMC was created to provide complete business and operations related services to charter developers and schools with an emphasis on the need for personal partner involvement in the early stages of charter formation and development. Mr. Lanni s education includes a Bachelor of Science, and an MBA in Finance from Cal State University Long Beach Nick Driver, Vice President of Strategic Development Nick brings a diverse background in charter schools, education advocacy, journalism and business development to his school support work for CSMC. Before coming to CSMC, Nick managed the petition writing, organizing and research of conversion public schools. Three district schools and their parent and community supporters secured approval to become partnership charter schools in 2012. From 2003 until 2011, Nick served as General Manager and Vice President at the California Charter Schools Association. He was responsible for the development of the organization s northern California strategy, on- the- ground advocacy, and community presence. Nick s political work includes multiple campaigns for bond measures and parcel taxes, as well as advocating for a revamped education finance system. He serves on the board of three non- profits, University of San Francisco s Center for the Pacific Rim, Educate Our State, and Education for Change Public Schools. A graduate of the University of California, Berkeley, Nick lived and worked in Beijing for 14 years and speaks fluent Mandarin. Jennifer Afdahl Rice, Chief Client Services Officer Jennifer Afdahl Rice has over 15 years of experience working with small businesses, social enterprises, and non- profit organizations, including public schools. Prior to joining Charter School Management Corporation, she served as senior loan and business development officer, vice president, with NCB Capital Impact (now Capital Impact Partners) for nearly six years. During this time, she had the opportunity to lead innovation, strategic and tactical planning for Capital Impact s education sector; to manage nationwide partnerships and loan programs; and to assist with the development and implementation of new products and services. She underwrote complex transactions, including New Markets Tax Credits and credit enhancements for tax- exempt bond financing, and managed a loan portfolio of $63 million. Her community outreach efforts included presentations at a variety of national and state conferences. CSMC Proposal for Golden Valley Charter Schools 2016-2018 15
Miles Denniston, Vice President and School Business Director Miles helps to lead CSMC as a School Business Director, as well as with its strategic planning efforts. Previously, Miles worked with the Charter Schools Development Center providing in- depth consulting to individuals and groups seeking to found a charter school. Miles also was the Managing Director and founding team member of Oakland School for the Arts, a downtown Oakland charter high school that successfully opened in 2002. Additionally, he founded the San Francisco- based nonprofit Youth for Environmental Service (YES), eventually expanding the program to Seattle and Los Angeles. For his work with YES, Miles was awarded a national Environmental Hero award presented by then Vice President Al Gore. Miles also has worked in the White House. He earned academic honors while receiving his MBA from Harvard Business School and his BA from Pomona College. Eileen Logue, School Business Director Eileen has worked with charter schools since 1994 and brings a wealth of charter school experience as she was among the first Charter Business Managers in California. Eileen s first involvement was as a parent at the Harriet Tubman Village Charter School (HTVCS), then joining the school as their Business Manager. After 5 years at HTVCS, Eileen moved to The O Farrell Charter School and served as the Chief Operating Officer for 10 years. Eileen has been a sought after presenter and peer mentor to many charter business managers. Along with Owen Sweeney at the San Diego County Office of Education, Eileen helped to start the Charter School Business Manager Group, which was active for several years and provided support to new and veteran Charter School Business Managers. Eileen received her Bachelor of Science in Finance from San Diego State University. A fluent Spanish speaker, Eileen has worked with International companies in Mexico for many years prior to her work with charter schools. CSMC Proposal for Golden Valley Charter Schools 2016-2018 16
School Profile: Golden Valley Charter Schools River School K- 8 Orchard School K- 8 + home study Kindergarten Total 2016-17 Student Enrollment: 552 Students (est.) Shared Understanding of Golden Valley Charter Schools Focus and Needs: CBO Services 2016-17 Accounting and back office services, including payroll and benefits service, beginning 2017-18. Train Golden Valley Charter Schools staff on Charter Vision and all back office related tasks Proposal Contact: Dr. Caleb Buckley, Ed. D. Executive Director CSMC Contact Information: Main Proposal Contact: Nick Driver Vice President of Strategic Development (415) 225-4661 ndriver@csmci.com CSMC Proposal for Golden Valley Charter Schools 2016-2018 17
CSMC Services Included in this Proposal: CBO Services 2016-17 Back-Office Services beginning 2017-18 o Internal Reporting and Budgeting o Fiscal Accounting & Back Office Support o External Authorizer & Compliance Reporting o Payroll & Human Resource Support Charter Vision Access Proposed Service Period: October 2016 June 2018 Summary of Pricing for Total Services: CBO Monthly Services Fee (October 2016- June 2017): $4,000 Back Office Setup Fee (July 2017): $5,000 Back Office Monthly Service Fee 2017-18: $7,250 Our proposal is predicated on our shared understanding of your support needs. If your number of students is appreciably higher than this number, an adjustment of fees may be required. With that principle in mind, we remain open to modify elements of our program to accommodate your changing needs. CSMC Proposal for Golden Valley Charter Schools 2016-2018 18