Keep Your School Financially Fit

Effective boards prepare a financial plan to ensure a school’s mission will be met and take the time to regularly evaluate their school’s financial performance. Join Institute President & CEO, Dr. Jim Goenner, and Charter School Business Management Inc., Founder & CEO, Raj Thakkar, as they discuss how boards can provide sound fiscal oversight and keep their school financially fit.

Mary Bradley, COO of the National Charter Schools Institute, and Jim Goenner, Ph.D. discussed the importance of financial health for charter schools. They emphasized the need for strong governance, strategic budgeting, and regular financial reporting. Raj Thakkar highlighted his approach to financial management, focusing on teaching schools to manage their finances or outsourcing to experts. Key points included the importance of realistic budgeting, forecasting, and understanding charter contracts. They also discussed the significance of values like kindness and respect in financial management. The session concluded with a Q&A on board treasurer roles, financial reporting, and development strategies.

Outline

Introduction and Gratitude

• Mary Bradley introduces herself as the Chief Operating Officer at the National Charter Schools Institute and expresses gratitude to board members for their service.
• Mary highlights the importance of financial health for charter schools and mentions the upcoming sessions on financial health and strategic budgeting.
• The session will be followed by a deeper dive into financial health next month, focusing on strategic budgeting.
• Mary introduces Jim Goenner, Ph.D. and Raj Thakkar, a charter school finance expert, and mentions a Q&A session at the end of the session.

Upcoming Events and Board Network

• Mary outlines upcoming events: strategic budgeting in April, school safety in May, and strategic planning in June.
• The National Charter Schools conference will feature board homeroom sessions in Austin, Texas.
• Mary encourages board members to join the Board Network, which offers On Demand Learning, access to experts, tools, and resources.
• The Board Network also offers the opportunity to earn CEUs and provides a community for board members to connect and learn from each other.

Raj Thakkar’s Approach to Financial Management

• Raj Thakkar explains his approach to financial management, which includes outsourcing accounting and finance responsibilities or developing in-house staff.
• Raj emphasizes the importance of empowering people with financial knowledge and criticizes the practice of keeping people in the dark about finances.
• Jim Goenner praises Raj’s humility and success, despite his many accomplishments.
• Raj discusses the balance of humility and confidence in leadership and the importance of readiness for growth.

Key Financial Management Concepts

• Raj introduces his book “Fiscally Secure,” which outlines common causes of financial mismanagement and provides cures and remedies.
• The book is divided into three parts: yesterday (accounting), today (finance), and tomorrow (management and governance).
• Raj emphasizes the importance of establishing roles, responsibilities, policies, and procedures for financial management.
• He discusses the need for accurate payroll processing and the importance of passing audits to demonstrate financial stability.

Reality-Based Budgets and Forecasting

• Raj explains the concept of reality-based budgets, which are based on realistic assumptions and iterations.
• He discusses the importance of forecasting to manage cash and plan for the future.
• Raj emphasizes the need for boards to grow wisely, mitigate risks proactively, and value invaluable talent and technology.
• He highlights the importance of transparency and understanding financial reports at every board meeting.

Board Member and School Leader Responsibilities

• Raj advises board members to regularly discuss finances, review financial reports, and ensure the entire board understands financial concepts.
• He emphasizes the importance of involving finance leaders in growth planning and ensuring financial reports are reviewed multiple times before board meetings.
• Raj discusses the need for school leaders to upgrade their financial acumen and build trust with their finance leaders.
• He highlights the importance of understanding the charter contract and the financial implications of enrollment and budget assumptions.

Charter Contract and Financial Health

• Raj explains that charter contracts often require specific deliverables, such as financial reports and audited financial statements.
• He discusses the importance of understanding the restrictions on restricted funding sources and planning accordingly.
• Raj emphasizes the need for boards to monitor financial health and ensure compliance with authorizer requirements.
• He highlights the importance of having a clear understanding of financial policies and procedures and the need for regular audits.

Values and Financial Management

• Raj shares the core values of his organization: kindness, accomplishment, respect, motivation, and appreciation.
• He explains how these values guide their operations and help them achieve their goals.
• Jim Goenner emphasizes the importance of values in governance and leadership, highlighting the role of the board treasurer in overseeing financial management.
• Raj discusses the importance of having clear job descriptions and roles for board members and committee chairs.

Q&A Session and Final Thoughts

• Jim Goenner and Mary Bradley answer questions from the audience about board treasurer responsibilities, financial reports, and development strategies.
• They emphasize the importance of having a plan, understanding financial deadlines, and ensuring transparency in financial reporting.
• Jim Goenner highlights the need for pre-qualification when launching capital campaigns and the importance of key performance indicators.
• Mary Bradley encourages board members to join the board network for additional resources and support.