Financial Planning, Reporting, and Accountability
Preliminary Renewal Petition language for submission for charter renewal 2021 - 2026)

BUDGET DOCUMENTS
Governing Law: The petitioner or petitioners also shall be required to provide financial statements that include a proposed first-year operational budget, including startup costs, and cashflow and financial projections for the first three years of operation. Education Code Section 47605(h).
Encore relies on State and Federal funding sources to support the basic program, instruction and curriculum. Federal, Private, and State Grants will be used to enhance learning opportunities and provide extra activities and events.


SEGREGATION OF DUTIES
All proposed expenditures must be approved by at least two levels of management. The first level of approval is a manager or administrator. The second level of approval is completed by an executive manager or the CEO. The third level of approval can be completed by the CEO or the Encore School Board President, but is only necessary if the purchase exceeds $25,000. The CEO will review the proposed expenditure to determine whether it is consistent with the adopted budget and sign the check request form. All transactions will be posted on an electronic general ledger. The transactions will be posted on the ledger by Encore site bookkeeper at the school site. To ensure segregation of recording and authorization, the bookkeeper may not co-sign check requests or purchase orders.


ON SITE BANKING ARRANGEMENTS
Encore Education Corporation will maintain an account with an established bank or credit union. The Executive bookkeeper (maintained currently through Delta Managed Solutions LLC) will reconcile Encore’s ledger(s) with its accounts in the bank or credit union on a monthly basis and prepare (1) a balance sheet, (2) comparison of budgeted to actual revenues and expenditures to date, and (3) a cash flow statement. This information will be made public in Encore Education Corporation Encore School Board meetings.


The Executive Office will regularly review these statements. Encore will deposit all funds received as soon as practical upon receipt.
A debit account will be established for onsite purchases. Purchases will use dual signed checks or debit card for purchases and will be reconciled by an onsite bookkeeper. Monthly reconciliation of this account will be approved in consent items of the Encore School Board.
Additional fiscal responsibilities will be handled by an outsourced Administrative Services Company, currently Delta Managed Solutions, LLC. All references herein to “Delta Managed Solutions, LLC” or “DMS” refer to Delta Managed Solutions, LLC, or a replacement qualified provider. The District shall at all times be provided with a current copy of any contract between Encore and any outside business services provider. Fees of the outside service provider shall not be on a contingency or percentage basis, or other basis whereby the service provider could make service decisions affecting their service fees at the expense of Encore and its students.

FINANCIAL REPORTING
In order to maintain proper bookkeeping, the Encore records clerk will be responsible for keeping day to day monetary income and expenditures for the office. All bookkeeping will be checked and approved by the Executive Office, then sent to an outside contracted payroll and bookkeeping service that will make records appropriate for tax and audits (currently Delta Managed Solutions, LLC.) A copy of these records will be kept on hand in the administrative office, and in an offsite secure location. Deposits will be made as needed to the correct financial institution.


Encore will adhere to the District’s reporting requirements.

  1. Encore will provide the following reports as required by Education Code Section 47604.33:

    1. By July 1, a preliminary budget for the current fiscal year.

    2. By July 1, an annual update (LCAP) required pursuant to Education Code Section 47606.5.

    3. By December 15, an interim financial report for the current fiscal year reflecting changes through October 31. Additionally, on December 15, a copy of Encore’s annual, independent financial audit report for the preceding fiscal year shall be delivered to the District, State Controller, State Department of Education and County Superintendent of Schools.

    4. By March 15, a second interim financial report for the current fiscal year reflecting changes through January 31.

    5. By September 15, a final unaudited report for the full prior year. The report submitted to the District shall include an annual statement of all Encore’s receipts and expenditures for the preceding fiscal year.

    6. The District shall use any financial information it obtains from Encore, including, but not limited to the reports required by this section, to assess the fiscal condition of Encore pursuant to subdivision (d) of Section 47604.32.

  2. Encore will provide the following data and reports as required by the District:

    1. If requested, monthly statements of accounts;

    2. Test results for all state mandated assessments, which are:

      1. CAASPP (California Assessment of Student Performance and Progress

      2. ELPAC (English Language Proficiency Assessments for California)

      3. SABE/2 (Spanish Assessment of Basic Education)

      4. CBEDS (California Basic Educational Data System)

      5. ADA (Average Daily Attendance) reports J18/19

      6. SARC (School Accountability Report Card – charter schools may use their own formats).

      7. By July 1 annually, an annual update (LCAP) required pursuant to Education Code Section 47606.5

PURCHASING PROCEDURES
All purchases over $25,000 must include documentation of a good faith effort to secure the lowest possible cost for comparable goods or services. The Executive Office shall not approve purchase orders or warrant requests lacking such documentation. Documentation shall be attached to all warrant and purchase order requests showing that at least (3) vendors were contacted and such documentation shall be maintained for (3) years.

PROPERTY INVENTORY
The Executive Office will work with contracted administrative services provided (currently Delta Managed Solutions, LLC) to establish and maintain an inventory of all non-consumable goods and equipment over $500. This inventory shall include the original purchase price and date, a brief description, serial numbers and other information on an annual basis and lists of any missing property shall be presented to the Encore Education Corporation Encore School Board.


ADMINISTRATIVE SERVICES
Governing Law: The manner in which administrative services of the charter school are to be provided. Education Code Section 47605(g).
Many core operations in the Encore Executive Office are outsourced to an appropriate firm with a solid background in charter school business services. Currently, these services are provided by Delta Managed Solutions, LLC. Delta Managed Solutions, LLC deals with over 40 charter schools within the state of California and keeps current with the ever changing charter laws. By outsourcing the following operations, Encore Education Corporation is able to focus on student success. The contract service provider covers the following administrative services:


FISCAL SERVICES -

  • ACCOUNTING – all accounting and bookkeeping functions using AptaFund (SACS-compliant with additional customized teacher element), with monthly reporting to Board of year to date budget vs. actual, trends, and projections.

  • BUDGETING – oversight and advisory role during the initial and ongoing budgeting process, assisting staff and Board with recommendations where requested.

  • ACCOUNTS PAYABLE/RECEIVABLE – timely processing of all invoices, maintenance of solid vendor relationships, establishment of credit as an independent school, coordinate with District, County and CDE staff to ensure timely and accurate apportionment transfers.

HUMAN RESOURCES -

  • PAYROLL – all payroll functions handled in house, including distributing checks and/or direct deposit, tracking and paying all payroll tax deductions, and STRS/PERS reporting/integration.

  • BENEFITS – researching and recommending benefit plan alternatives (matching or exceeding existing plan benefits), assisting all employees in subscribing for benefits.

  • GENERAL HR – coordinating initial hiring paperwork, DOJ clearances, contracts, general oversight of all HR matters.

PURCHASING/PROCUREMENT -

  • PURCHASING – coordinating purchasing of all materials using AptaFund – teachers will be able to see teacher-specific budgets in real-time and can order materials online – SACS coding handled by the contracted administrative services provider (currently Delta Managed Solutions, LLC) (including teacher-specific coding).

  • FIXED ASSET INVENTORY MANAGEMENT – compile and maintain complete fixed asset list.

STUDENT INFORMATION OVERSIGHT -

  • ADA REPORTING – including all required 20-day, P-1, P-2, and Annual Reports.

  • DATA TRACKING ASSISTANCE – ARRA, Cash Management, EL, etc.

INSURANCE
Encore Education Corporation shall maintain general liability, workers compensation, and other necessary insurance of the types and in the amounts required for an enterprise of similar purpose and circumstance. Coverage amounts will be based on recommendations provided by the District and Encore’s insurer. The District Board of Education shall be named as an additional insured on all policies of Encore.


POLICES, CONTROLS, GUIDELINES
Encore has developed, implemented, and ensured compliance with health, safety, and risk management guidelines in consultation with its insurance carriers and risk management experts.


Encore maintains other fiscal control policies as recommended by independent certified public accountant retained by Encore to advise it on fiscal control policy matters.


Encore High School of the Arts and Encore Education Corporation holds and will maintain in full force and effect a Memorandum of Understanding (“MOU”) MOU with the District to legally establish the specifics of the mutual relationship, as necessary and/or required by the District. Such MOU, as it may be amended from time to time, is incorporated into the Charter and made a part hereof as if set forth in full in the Charter.


Encore will act as its own fiscal agent to the fullest extent of the law.

DISTRICT OVERSIGHT
Petitioner understands that current law mandates that the District provide oversight and performance monitoring services, including monitoring School and student performance data, financial statements and audit reports, enrollment verification, performing annual site visits, engaging in the Dispute Resolution Process, and considering charter amendment and renewal requests. Encore shall at all times work cooperatively and support the District in its oversight role over Encore, providing all information and documentation necessary for the District efficiently to carry out its oversight function. The District may charge for the actual cost of supervisory oversight of Encore, up to any maximum permitted by law (currently described and limited in Education Code Section 47613). Encore and the District agree that the District’s actual oversight costs will meet or exceed the maximum fee permitted by law and that the District does not have to submit invoices or other proof of its oversight costs.


FACILITIES
Governing Law: The facilities to be utilized by the charter school. The description of the facilities to be used by the charter school shall specify where the charter school intends to locate. Education Code Section 47605(h).

  • Encore Education Corporation currently owns a 100,000 square foot campus on 11 acres located off of C and Lemon Avenue.

  • This facility was purchased using bond funding from CFSA

  • Encore Jr./Sr. High School has been housed in this facility since 2008.

  • All facilities occupied by Encore shall comply with all applicable federal, state and local laws and regulations applicable to California charter school facilities, including but not limited to accessibility and safety requirements.

TRANSPORTATION
Encore may provide limited transportation to and from school as funding allows, but will not commit to offering transportation at all times, except as required by law for students with disabilities in accordance with a student’s IEP. Encore reserves the right to operate a bus service for a fee to the students if the need arises.


SITE SAFETY and COMPLIANCE
Encore shall comply with Education Code Section 47610 by either utilizing facilities that are compliant with the Field Act or facilities that are compliant with the California Building Standards Code. The Certificate of Occupancy and other pertinent records will be kept on file by Encore In the event Encore is cited by any agency, e.g. Cal OSHA or the Fire marshal, for failure to comply with regulations, the District’s Charter Liaison Office will be notified immediately.

ASBESTOS MANAGEMENT
The Asbestos Hazard Emergency Response Act (AHERA) 40 CFR part 763 requires that any building leased or acquired that is to be used as a School or administrative building be initially inspected for asbestos-containing materials by an accredited inspector. Additionally, Encore will comply with all other AHERA requirements, such as performing re-inspections and maintaining an asbestos management plan.

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Office: 760-949-2036

Hesperia: 760-956-2632 

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16955 Lemon Street

Hesperia, CA 92345

Established 08/08/08

© 2020 Encore Education Corporation

Encore Education Corporation does not and shall not discriminate on the basis of race, color, religion (creed), gender, gender identity or expression, age, national origin (ancestry), ethnic group identification, mental and physical disability, marital or parental status, sex, sexual orientation, or military status, or genetic information in any of its activities or operations. The perception of one or more of such characteristics: or association with a person or group with one or more of these actual or perceived characteristics. Encore Education Corporation is an equal opportunity employer.