20082009 Adopted Budget

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West Sacramento Early College Prep Charter School
October 7, 2008

• 2008-2009 Adopted Budget

www.wsecp.org [phone] [phone]
FAX 919 Westacre Rd. West Sacramento, CA 95619
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Table of Contents
1. Introductory SectionPage 1
2. Organizational Section.Page 22
3. Financial Section...Page 38
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Introductory Section
Principals Message.Page 4
Board of DirectorsPage 5
Organizational ChartPage 6
Executive Summary.Page 7
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Principals Message

• October 7, 2008
• As Principal of the West Sacramento Early College
  Prep Charter School, it is my distinct pleasure
  to present you with the 2008-2009 Budget. This
  past school year was an exciting year filled with
  many achievements by our students and staff. We
  completed our first year of operations and are
  pleased to report the end of a successful school
  year filled with collaboration with our
  supporting organizations, UC Davis, Sacramento
  City College and Washington Unified School
  District. Although we, like everyone else, have
  experienced hardship in these times of state
  fiscal crisis, as you can see from the following
  report, we continue our pursuit of academic
  excellence.
• Our chief business officer and I have been
  meeting since April to review our budget
  priorities for the 2008-09 budget. A proposed
  budget was accepted by the board of directors at
  its June 26th meeting. With the recent adoption
  of the State budget for 2008-09, we have now been
  able to finalize the revenue portion of our
  general fund budget. Unfortunately, our revenue
  limit revenue was reduced by 33,000 based on
  lower than anticipated enrollment in 6th grade.
  Lottery funding has been reduced in the final
  state budget which also resulted in a 2,000 loss
  in revenue. Because of conservative budgeting by
  the board, the reductions to the expenditures
  were minimal with no reduction of staff. We will
  be able to continue to provide excellent
  educational opportunities to our students and
  improve the fiscal soundness of West Sacramento
  Early College Prep Charter School without the
  need of a start up loan from Washington Unified
  School District. This budget document is much
  more than numbers. You will see that a large
  percentage of the money spent by our school goes
  to hiring people who directly or indirectly
  support our students. The document will also
  provide you with an understanding of all aspects
  of the operation of West Sacramento Early College
  Prep Charter School including our governance and
  administrative structure, the formulas that are
  used to allocate funds, and a summary of student
  achievements. This budget document represents
  our fiscal plan to provide an educational program
  for all students of the charter school as we
  continue our vision to prepare our students for
  success in college and beyond. If you have any
  questions or need additional information or
  further explanations on any aspect of the Adopted
  Budget, please feel free to call me at (916)
  375-7680. I, along with our staff, will meet
  with you to answer your questions and/or listen
  to your concerns.
• Yolanda Falkenberg,
• Principal, WSECP Charter School

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Board of Directors

• President, Harold Levine
• Vice President, Deborah Travis
• Secretary, Steven Lawrence
• Treasurer, Ursula Ruffalo

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Organizational Chart
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Executive Summary

• West Sacramento Early College Prep Charter School
  serves students primary from the Washington
  Unified School District in the City of West
  Sacramento. Our class population is limited to
  60 students per grade level. For 2008-09, we
  operate grades 6, 7 and 8. We will continue to
  add an additional grade level each year until we
  operate grades 6-12.
• A Different Kind of School
• Several characteristics set our school apart
• - A learning environment where students are
  safe, well cared for, and treated as
  individuals- Small school with personalized
  learning opportunities- A clear and explicit
  focus on college-going- A strong connection with
  the community and local neighborhood- A sense of
  community within classrooms and throughout the
  school  - A challenging and engaging learning
  environment
• Focus on ResultsThe curriculum and teaching
  philosophy are designed to serve students who
  have had difficulty succeeding in traditional
  middle and high school classrooms. Every graduate
  of our school will have completed the courses
  required for the University of California and the
  California State University. While in high
  school, students will have the opportunity to
  enroll in up to eight college courses.

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Executive Summary

• The West Sacramento Early College Prep Charter
  School is designed to provide an exceptional
  education that will empower students to excel
  inside and outside of school. By preparing all
  students to succeed in college and an
  increasingly global workplace, the school hopes
  to create a community of motivated, educated
  life-long learners.
• The budget process starts in January of each year
  with the State of the State Address by the
  Governor and continues through this adopted
  budget plan for the coming fiscal year. West
  Sacramento Early College Prep (WSECP) Charter
  School, like most charter schools in California,
  is dependent upon the State for much of its
  revenue each year. The Charter Schools Adopted
  Budget revenue projection is developed based on
  the State Budget, along with the Charter Schools
  student enrollment projection for the budget
  year.

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Revenue Limit Summary

• Revenue Limit Funding
• State of California has been marred by the budget
  crisis over the last several years. The start of
  the 2008-09 school year is very encouraging for
  WSECP Charter School, with almost full enrollment
  in 7th and 8th grade and an improvement of 14 in
  the size of the 6th grades class. Revenue limit
  income is almost 99 percent of the entire charter
  school budget. The state only granted an cost of
  limit increase of 0.68 percent and these
  increases are used to cover all increased supply
  costs, and increased salary and benefit costs.

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Summary of Revenues

• The Charter Schools total budgeted revenue for
  2008-09 is 1,058,676. This is a increase of
  388,599 from the 2007-08 unaudited actuals
  revenue of 670,077. This increase is mainly due
  to increased enrollment and the additional
  revenue source of lottery funding.

Prior Year
Budget Year
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Summary of Proposed Expenses

• The Charter Schools total budget expense for
  2008-09 is 986,371. This is an increase of
  244,034 compared to the unaudited actuals. Most
  of the increase is because our student enrollment
  has increased by 60. WSECP also hired a Chief
  Business Officer to take on some of the duties
  that were charged to operating costs last year.

Prior Year
Budget Year
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• West Sacramento Early College Prep Charter
  Schools Enrollment Patterns
• Many school districts and charter schools
  throughout California experienced a decline in
  student enrollment during previous years but
  WSECP has increasing enrollment because of a rise
  in the popularity of our school as well as adding
  an additional grade.

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School Staffing

• As with any educational organization, people
  and/or positions are the key factors in budget
  development. The success of the Charter School is
  dependent upon the quality of staff in the
  School. WSECP Charter School employees have
  allowed the District to meet the aims of the
  Governing Board.
• The certificated and classified staff all play a
  key role in continuing the Charter Schools
  success. The certificated staff have played a key
  role in maximizing student achievement while the
  classified staff have been essential in
  supporting the educational programs. All of WSECP
  Charter Schools employees help to ensure the
  safe and positive learning environment at WSECP.
• With the addition of a new grade level, two new
  6th grade teachers were hired while our previous
  teachers took on the task of creating an 8th
  grade curriculum. We also hired a math teacher
  to replace a departing teacher. Our school
  administrative assistant was made full time and
  we hired our own half time Chief Business Officer
  to handle our finance, risk management and human
  resources duties.

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Ending Fund Balance

• Examining a charter schools unrestricted Net
  Ending Balance over a series of years can provide
  a good overview of a charter schools fiscal
  health and stability. While examining the current
  year's unrestricted balance is an essential part
  of good fiscal management, examining the balance
  over a course of years can provide an additional
  image of Charter Schools fiscal strengths or
  weaknesses. The "unrestricted" Net Ending
  Balance--the year end balance that reflects the
  income that can be expended as the local agency
  determines--is the most-watched single
  characteristic of a charter school's fiscal
  health. Charter Schools are recommended to have
  minimum balances available to meet potential
  emergency needs. Assuring that adequate balances
  are available at the end of the year is an
  important part of Charter School fiscal
  management.

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Budget Adoption

• The Adopted Budget document provides the reader
  with a detailed review of the goals and
  objectives of West Sacramento Early College Prep
  Charter School and the school allocates its funds
  to meet those objectives. The budget has been
  completed using the ASBO Meritorious Budget
  format to provide the reader with a more readable
  document in understanding the charter school
  budget and California school finance. In the
  2008-09 fiscal year, West Sacramento Early
  College Prep Charter School is projecting to
  receive 1,058,676 and spend 986,371 from the
  general fund with a staffing of 9.5 full-time
  equivalent employees. One school site with grades
  6-8 will be served with the vision to provide an
  exceptional education that will empower students
  to excel inside and outside of school. By
  preparing all students to succeed in college and
  an increasingly global workplace, WSECP Charter
  School will create a community of motivated,
  educated life-long learners.

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Multi Year Projections

• Often, looking at one or two years of financial
  data will not provide the reader with the ability
  to observe financial trends. The Charter School
  provides one year of prior data, the budget for
  the current year and three years of projected
  data for our only fund, the general fund. The
  projections take into consideration economic
  forecasts for the State of California and a
  variety of other issues. Most projections for
  future years are calculated at 4.5 increase for
  certificated and classified salaries. Benefits
  and non-salary expenses are projected based on
  anticipated growth and expected increases in
  costs of materials/services. The financial
  projections for the next three fiscal years are
  positive and it is projected that by 2011-12, the
  District will have a General Fund ending fund
  balance of more than 500,000.

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English Language Learners

• ELL students at WSECP are tested each fall using
  the California English Language Development Test
  (CELDT) with respect to the percent of students
  who are attaining English proficiency. English
  proficiency is defined by the State as achieving
  an overall score at the Early Advanced or
  Advanced proficiency level on the CELDT.
• The data is for our 08-09 students divided by
  grade level. We will use this information as a
  baseline to evaluate our ELL student progress in
  the future.

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STAR California Standards TestEnglish Language
Arts Grade 6

• Results from STAR tests taken in May 2008 for 6th
  grade. A majority of our 6th grade students came
  from Westfield and Elkhorn.

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STAR California Standards TestEnglish Language
Arts Grade 7

• Results from STAR tests taken in May 2008 for 7th
  grade. A majority of our 7th grade students came
  from the Golden State Middle School Attendance
  Area.

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STAR California Standards TestMath Grade 6

• Results from STAR tests taken in May 2008 for 6th
  grade. A majority of our 6th grade students came
  from Westfield and Elkhorn.

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STAR California Standards TestMath Grade 7

• Results from STAR tests taken in May 2008 for 7th
  grade. A majority of our 7th grade students came
  from the Golden State Middle School Attendance
  Area.

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Organizational Section
Charter Organization.Page 23
Budget Factors used for 2008-09 General
FundPage 29
Budget Calendar..Page 33
Budget Development Process..Page 37
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Charter Organization

• Organized as a charter school in 2007, WSECP is
  administered through a nonprofit public benefit
  corporation formed by the Washington Unified
  School District (WUSD), Sacramento City College
  and UC Davis. The Washington Unified School
  District, the Regents of the University of
  California on behalf of UC Davis, and the Los
  Rios Community College District desired to
  collaborate by using their respective know-how
  and expertise to establish a public charter
  school. A new West Sacramento Early College Prep
  (WSECP) Charter School in the City of West
  Sacramento provides an exceptional opportunity
  for students in the Washington Unified School
  District to achieve the promise of a
  postsecondary degree. It will also afford an
  opportunity to create and investigate the
  learning conditions that have to be promoted in
  secondary schools and their local communities to
  promote educational engagement and attainment.

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Governance

• The West Sacramento Early College Prep is
  governed by four (4) member Board of Directors
  whose roles and responsibilities will include but
  not be limited to establishing broad policies
  that affect the West Sacramento Early College
  Prep by approving the schools annual budget, and
  overseeing the schools financial affairs. The
  Board of Directors will be responsible for hiring
  a Principal who will be responsible for
  management of the day-to-day affairs of the
  School. The composition of the Board of Directors
  will be as follows
• The Superintendent or his/her designee from
  Washington Unified School District
• One representative from the University of
  California at Davis
• One representative from Sacramento City College.
• One representative from the Community

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Mission

• The mission of West Sacramento Early College Prep
  Charter School, using a diverse set of approaches
  to learning, is to provide educationally
  disadvantaged students with an exceptional
  education that will allow them to excel inside
  and outside of school. The School strives to
  ensure that students are prepared for college and
  for the 21st Century world and workplace by
  becoming thoughtful and engaged global citizens.
• The West Sacramento Early College Prep Charter
  School will improve learning opportunities for
  educationally disadvantaged students and increase
  learning opportunities for its students according
  to the following guiding principles
• Create successful lifelong learners through an
  engaging and challenging college preparatory
  curriculum.
• Support for every child through a) a foundation
  of nurturing relationships between teachers,
  staff, and community members in the school and b)
  a diversity of approaches to learning.
• Focus on 21st Century problems through
  inquiry-based learning, developed with the
  philosophy of teaching how real practitioners
  (scientists, historians, physicians, legal
  experts, etc.) think and "do" their craft.
• Promote student academic, social, and emotional
  well-being, self-efficacy, independence, and the
  opportunity to obtain college credit as part of
  their high school experience.
• Create a small school learning community, with a
  higher than average ratio of adults to students.
• Foster deep and ongoing engagement with parents,
  families, and community members. It will be a
  community school, physically located in or near
  the community we intend to serve.
• Create a professional learning community among
  teachers, administrators, and other school
  leaders that emphasizes cooperative professional
  learning.
• Serve as an important learning organization which
  focuses on both promising educational practices
  and on the conditions that must be in place to
  bring about change in the learning skills,
  achievement, and success opportunities of
  historically underserved learners.

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Educational Philosophy

• The educational program of the West Sacramento
  Early College Prep consists of a challenging core
  curriculum, with outstanding staff, high
  standards and expectations, support, and
  personalized learning opportunities. Among the
  goals of the West Sacramento Early College Prep
  is the objective of enabling students to become
  self-motivated, competent, and life-long
  learners.
• Class sizes will be kept to an average of 30
  students per class, not to exceed 33. However,
  individual class sizes will vary depending upon
  the instructional activities.

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Students to be Served

• The West Sacramento Early College Prep opened in
  2007-08 as a campus serving approximately 100
  students in grades 6 and 7 (60 students max per
  grade level) and will expand to serve up to 630
  students in grades 6 through 12 by adding a grade
  level each year in sequence (i.e., add grade 8 in
  2008-09, etc.).
• Although the School will draw from the District
  as a whole, the focus will be on recruiting
  students in a manner to ensure a diverse student
  body. Many students living in the District face
  tremendous obstacles to attending college or
  pursuing their career goals including language
  barriers, lack of resources, peer pressure, poor
  learning habits, and limited success in mastering
  academic skills. Many students hope to become
  the first in their family to attend college. The
  Schools educational program is based on the
  instructional needs of our students, who are
  educationally disadvantaged young children,
  including those who
• Come from economically disadvantaged families and
  the economically disadvantaged neighborhood
  cachement area (s) for the school and/or
• Are first-generation college-goers and/or
• Do not speak English as their first language
  and/or
• Are underachieving in math, reading, and writing
  and/or
• Whose academic needs necessitate a small school
  environment with personalized attention and/or
• Who have not experienced success in a traditional
  school environment.

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Charter Funds and Location

• At this time, West Sacramento Early College Prep
  Charter School only operates one fund, the
  general fund. All of the revenue it receives is
  unrestricted.
• There is one school site for West Sacramento
  Early College Prep Charter School located at 919
  Westacre Road in West Sacramento at the former
  site of Evergreen school. We currently share the
  campus with the 6-8 grades of Westmore Oaks
  Elementary and a Pre-School.

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Budget Factors Used for the 2008-09 Budget
Enrollment and Employment

• Average Daily Attendance (ADA) Calculation 95
  ADA of enrollment (as of 10/1/08) was used for
  08/09. For the 9th grade class in 09/10,
  enrollment drop of 15 is anticipated because of
  the opening of the new River City High School.
  We expect to see those students return or be
  replaced, but to be conservative, the ADA for the
  9th grade class in 09/10 used is 95 of 85 of
  full enrollment. 95 of full enrollment
  estimated for all future years. Percentage is
  below ADA percentages of other charter schools in
  the Sacramento area and is lower than our average
  ADA for 07/08.
• Percentage of Free and Reduced-Price Lunch for
  Students The percentage that is being used is
  88 this is the average free and reduced-price
  lunch number for WSECPs student population in
  07-08.
• Percentage of LEP Students The percentage that
  is being used is 42 this is the average
  percentage of LEP students for WSECPs student
  population in 07-08.
• Number of Teachers WSECP Charter School has 7
  teachers 08/09. The budget includes 9 teachers
  as well as one guidance counselor in 09-10, 12
  teachers/1 guidance counselor in 10-11 and 15
  teachers/2 guidance counselors in 11-12.

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Budget Factors Used for the 2008-09 Budget
Revenues

• Principal Apportionment 08-09 estimates are
  based on revenue limit estimates provided by
  School Services of California for state budget
  signed in September. For 09/10 and 10/11, no
  revenue limit increases are included as
  recommended by the California County
  Superintendents Educational Services Association.
  In 11/12, the percentage increase of the funded
  revenue limit change provided by School Services
  of California was used to estimate revenue limit
  amounts.
• Federal Revenues WSECP has applied for federal
  revenues through the consolidated application
  process. If the charter qualifies for federal
  revenues, those amounts will be added to the
  budget in the 1st or 2nd Interim Budgets when
  accurate amounts are known.
• Other Categorical Revenues and Local Grants
  Amounts will be added to the budget in the 1st or
  2nd Interim Budgets when accurate amounts are
  known.
• Special Education Currently we are deemed a
  public school of Washington Unified School
  District for Special Education funding. No
  encroachment on the general fund is anticipated.
  WSECP Charter has planned a very conservative
  budget that has at least 24 percent of its
  yearly expenses in reserve each year.

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Budget Factors Used for the 2008-09 Budget
Employment Expenditures

• Certificated Salaries
• 1100 Series Teachers Salaries Teacher Salaries
  for 08-09 are based on contracts offered. A 4.5
  increase is included in subsequent years.
• 1200 Series School Administrative Salaries
  Principals salary is based on the current
  contract amount. A 4.5 increase is included in
  subsequent years.
• Classified Salaries
• 2100 Instructional Aid Salaries The 09-10
  budget includes a .5 FTE classroom aide. The
  10-11 and 11-12 budgets includes two .5 FTE
  classroom aides.
• 2300 Classified Administrators Salaries The
  08-09 budget includes a .5 FTE Chief Business
  Officer. The 09-10 budget increases the FTE of
  the CBO to 1.0. A 4.5 increase is included in
  subsequent years.
• 2400 Clerical Salaries The school secretary will
  be full time in 08-09 and beyond. In 09-10 an
  additional .5 FTE clerical position is included
  in the budget. A 4.5 increase is included in
  future years.
• Employee Benefits
• 3000 Series Assumes existing published rates for
  STRS, PERS, Medicare, OASDI, Unemployment
  Insurance, Workers Compensation, and 10,500 per
  year per employee for health and welfare costs.

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Budget Factors Used for the 2008-09 Budget
Supplies and Operating Expenditures

• Books and Supplies
• 4000 Series Textbooks Other Books Expenses in
  08-09 assume that WSECP purchases 400 in books
  for each new student. An additional 10,000 was
  added in subsequent years to replace borrowed
  books from its authorizing district. In 11-12,
  an additional 100,000 is included for planned
  textbook adoption. Additional costs for supplies
  and equipment reflect the need for furniture and
  technology as we add a new grade each year as
  well as the costs of supplies for school
  administration.
• Services and Other Operating Expenditures
• 5000 Series Services and Other Operating
  Expenditures Included in this category are
  expenses for Travel and Conference, Dues and
  Membership and Insurance. Travel and Conference
  amount increased in 09-10 and 11-12 because of
  staff increases as well as plans to send staff to
  the Charter Association Annual Conference held in
  Sacramento on 09-10 and 11-12. Additionally,
  technology services, transportation, health
  services and food services provided for WSECP by
  WUSD are included in this series. The 08-09
  budget includes 156,850 (15,685 per classroom)
  for facilities as requested by WUSD which
  includes custodial services and utilities.
  Starting in 09-10, WSECP Charter will apply for
  Prop 39 facilities from WUSD. Until a new
  agreement is reached, the amounts estimated for
  services and facilities from the district are
  based on projections given to WSECP by WUSD. The
  08-09 budget and subsequent years do not include
  payment for superintendents office, human
  resources or fiscal services because the charter
  will have a chief business officer to assume
  those duties.
• Direct Support/Indirect Costs 1 of general
  purpose and categorical block grant revenue to be
  paid to chartering agency for oversight is
  included in the Professional Services section of
  the budget.

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Budget Calendar

• In October 1991, Governor Wilson signed into law
  Assembly Bill 1200 which became effective on
  January 1, 1992, allowing school districts (and
  now Charter Schools) to choose one of two methods
  for the approval of their local budgets. Since
  our inception in 2007, the Governing Board has
  proposed the single budget adoption process which
  requires a charter school to conduct its public
  hearing and adopt its final budget by July 1 of
  each year. The selection of the single budget
  adoption process further requires a Charter
  School present a revised budget within forty-five
  (45) days of the Governors signing of the State
  Budget, including revisions in revenue and
  expenditures that reflect the funding made
  available by the State Budget Act.
• The process of developing a school district
  budget is an ongoing function that must be
  addressed by the Board and Administration
  throughout the school year. In order to
  effectively develop a fiscal document that
  reflects the goals and objectives of the charter
  school, the budget process must include a
  well-defined budget calendar outlining when each
  component of the budget is to be completed.
• Although there are numerous deadlines used in the
  development of the 2008-09 budget, the calendar
  highlights the main steps, specifically those
  involving the Governing Board.
• Following is the budget calendar for its use in
  the 2008-09 budget adoption process.
• January 10, 2008 Governors 2007-08 budget
  proposal released
• May 15, 2007 Governors Budget May Revise
• May, 2008 Preliminary Budget presentation to
  Board
• June 26, 2007 2008-09 Adopted Budget approved
• September 26, 2008 Governor signed 2008-09 budget
• October 7, 2008 Board meeting to adopt revised
  2008-09 Budget

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Significant Accounting Policies and Terms

• The Charter School accounts for its financial
  transactions in accordance with the policies and
  procedures of the Department of Educations
• California School Accounting Manual. The
  accounting policies of the District conform to
  accounting principles generally accepted
• in the United States of America as prescribed by
  the Governmental Accounting Standards Board and
  by the American Institute of
• Certified Public Accountants. The following is a
  summary of the significant accounting policies
• A. Fund Accounting - The accounts of the District
  are organized on the basis of funds or account
  groups, each of which is
• considered to be a separate accounting entity.
  The operations of each fund are accounted for
  with a separate set of selfbalancing
• accounts that comprise its assets, liabilities,
  fund balance, revenues and expenditures, as
  appropriate. Charter
• resources are allocated to, and accounted for, in
  individual funds based upon the purpose for which
  they are to be spent and
• the means by which spending activities are
  controlled. The Charter accounts are organized
  into major, non-major, and fiduciary
• funds.
• Major Governmental Funds
• General Fund is the main operating fund (and at
  this time, the only fund) of the Charter. It is
  used to manage all financial resources except
  those required to be accounted for in another
  fund. As we grow, we may find it necessary to
  use the following funds in the future
• Building Fund is used to account for the
  acquisition of major governmental capital
  facilities and buildings from bond
• proceeds.
• Capital Facilities Fund is used to account for
  resources received from developer fees.
• Non-Major Governmental Funds
• Special Revenue Funds are used to account for the
  proceeds of specific revenue sources that are
  legally restricted to
• expenditures for specific purposes. Funds in this
  category are Adult Education Fund, Child
  Development Fund and Food
• Service Fund (Campus Catering).

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Significant Accounting Policies and Terms

• Basis of Accounting - Basis of accounting refers
  to when revenues and expenditures are recognized
  in the accounts and reported in the financial
  statements. Government-wide revenues and
  expenditures are recorded using the modified
  accrual basis of accounting. Fiduciary funds use
  the accrual basis of accounting.
• Accrual Revenues are recognized when earned and
  expenses are recognized when incurred.
• Modified Accrual Revenues are recorded in the
  fiscal year in which the resources are measurable
  and become available. Available means the
  resources will be collected within the current
  fiscal year or are expected to be collected soon
  enough thereafter to be used to pay liabilities
  of the current fiscal year. Revenue from property
  taxes is recognized in the fiscal year for which
  the taxes are levied. Revenue from grants and
  entitlements is recognized in the fiscal year in
  which all eligibility requirements have been
  satisfied. Expenditures are generally recognized
  in the accounting period in which the related
  fund liability is incurred. However, debt service
  expenditures, as well as expenditures related to
  compensated absences and claims and judgments,
  are recorded only when payment is due.
  Allocations of cost, such as depreciation and
  amortization, are not recognized in governmental
  funds. When both restricted and unrestricted
  resources are available for use, it is the
  Charters policy to use restricted resources
  first then unrestricted resources as they are
  needed.
• Budgets and Budgetary Accounting - Annual budgets
  are proposed on a basis consistent with generally
  accepted accounting principles for all government
  funds. By State law, the Charters Governing
  Board must adopt a final budget no later than
  July 1. These budgets are revised by the
  Charters Governing Board during the year to give
  consideration to unanticipated income and
  expenditures. Formal budgetary integration was
  employed as a management control device during
  the year for all budgeted funds. The Charter
  employs budget control by minor object and by
  individual appropriation accounts. Expenditures
  cannot legally exceed appropriations by major
  object account.

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• Encumbrances - Encumbrance accounting is used in
  all budgeted funds to reserve portions of
  applicable appropriations for which commitments
  have been made. Encumbrances are recorded for
  purchase orders, contracts, and other commitments
  when they are initiated. Encumbrances are
  liquidated when the commitments are paid.
• Inventories - Inventories are recorded using the
  consumption method, in that inventory
  acquisitions are initially recorded in inventory
  accounts and the cost is recorded as expenditure
  at the time items are requisitioned. Inventories
  are valued on the weighted average method.
  Reported inventories are equally offset by a fund
  balance reserve which indicates that these
  amounts are not available for appropriation and
  expenditure even though they are a component of
  net current assets.
• Prepaid Expenses - The District has the option of
  reporting expenditure in governmental funds for
  prepaid items either when purchased or during the
  benefiting period. The District chooses to report
  expenditures in the benefiting period.
• Capital Assets - Assets purchased or acquired
  with an original cost of 5,000 per unit or more
  are reported as capital assets.
• Fund Balance Reserves and Designations -
  Reservations of the ending fund balance indicate
  the portions of fund balance not set up for
  expenditure or amounts legally segregated for a
  specific future use. Designations of the ending
  fund balance indicate tentative plans for
  financial resource utilization in a future
  period.

37
Budget Administration and Management

• Budget Administration and Management-During the
  2008-09 fiscal year, the Board will utilize the
  single step budget calendar in meeting its legal
  requirements regarding the adoption of the annual
  operating budget. The Charters annual Proposed
  Budget is approved at the June board meeting each
  year. Consistent with California Education Code,
  the district must revise its 2008-09 budget for
  all funds within 45 days from the date the State
  adopts its budget (State Budget Act). Once the
  Districts Budget is adopted it will be modified
  to reflect revenue and expenditure adjustments on
  a quarterly basis.
• Budget Adjustments-Each year quarterly financial
  reports are prepared by the Principal and Chief
  Business Officer for review by the Board that
  reflect updated financial data. In addition,
  prior to the completion of the audited financial
  reports, the Administration prepares a separate
  annual financial report for review. The quarterly
  report, which provides the reader with a summary
  of adjustments made to major object
  classifications of revenue and expenditure
  accounts, is another tool used by management to
  monitor the budget. The quarterly report compares
  the Districts Proposed Budget to the updated
  budget, including all adjustments made to date.
  The report also includes revenues received and
  expenditures made to date. A narrative that
  briefly summarizes major adjustments made
  precedes each funds financial comparison. The
  annual financial report is presented in this same
  format to the Board in August or September of
  each year.
• Budget Development Process-Preparing the budget
  is an ongoing process that formally begins in
  January of each year for the following July. The
  Principal and Chief Business Officer work
  together to develop a budget which is based on
  the goals and direction of the Charters
  Governing Board
• Budget Management-Budget management is
  accomplished in part through the Charters fully
  integrated financial software system. Orders for
  outside vendor items are requisitioned by the
  staff and entered into our software system and
  must include a valid account number to which the
  items will be charged. The software verifies the
  validity of the account number and whether
  sufficient dollars are available to cover the
  items being purchased. The system advises the
  user immediately if the order will or will not be
  processed, and if not, why and how the user can
  correct the problem.

38
Financial Section
Summary of RevenuePage 39
Summary of ExpendituresPage 40
General Fund BalancePage 45
Multi-Year ProjectionsPage 46
State Reports...Page 48
39
Revenue Classifications

• For reporting purposes, General Fund Revenue is
  divided into four (4) major account
  classifications. Following is a summation of the
  major account classifications and anticipated
  revenues for 2008-09. Our only source of revenue
  that is not considered part of Revenue Limit
  Funding is the State Lottery Funding, which
  represents 1 of our revenue.

40
Expenditure Classifications

• For reporting purposes, General Fund expenditures
  are divided into seven (7) major account
  classifications. WSECP charter currently only
  uses the following five (5) account
  classifications. The following is a summation of
  the major account classifications and anticipated
  expenditures for 2008-09 as compared to the
  2007-08 actual expenses
• Certificated Salaries
• Certificated salaries include teachers,
  administrators, counselors, librarians,
  supervisors, psychologists and other employees
  who maintain a credential with the State of
  California. This expense represents approximately
  42 of total expenditures. It is projected that
  420,746 will be expended on certificated
  salaries in 2008-09. This represents an increase
  of 82,778 over 2007-08.
• Significant changes in Certificated Salaries from
  the 2007-08 program include the following
• Two additional teachers hired for the additional
  grade level

41
Expenditure Classifications

• Classified Salaries
• Classified salaries are comprised of the
  Districts support staff, including instructional
  aides, clerical, custodial, maintenance, grounds,
  transportation, uncredentialed administrative and
  other personnel who are not required to maintain
  a credential with the State of California. These
  expenses represent approximately 6 of total
  expenditures.
• It is projected that 67,000 will be expended on
  classified salaries in 2008-09. This represents
  an increase of 46,413. from 2007-08 actuals.
• Following is a summation of the major changes
  affecting the 2008-09 classified salaries budget
• Increase the Administrative Assistant from .5 to
  1.0 FTE
• Creation of new .5 FTE Chief Business Officer
  Position

42
Expenditure Classifications

• Employee Benefits
• Employee benefits include all employer
  contributions to retirement plans (State Teachers
  Retirement, Public Employees Retirement,
  part-time Employees Retirement and Social
  Security) and health welfare benefits provided
  to all eligible employees. These expenses
  represent approximately 17 of total
  expenditures.
• It is currently anticipated that approximately
  165,597 will be expended on employee benefits in
  2008-09. This represents a net increase of
  98,866 from 2007-08.
• The charter currently received health and welfare
  benefits through Washington Unified School
  district through 12/31/08. We are currently
  working with a insurance broker to obtain health
  and welfare benefits on our own. We hope to
  obtain rates comparable to the rates we received
  through Washington Unified School District.
• Employee benefits not relating to health and
  welfare benefits are based upon a formula
  percentage of the employees salary.

43
Expenditure Classifications

• Books and Supplies
• Books and Supplies include those items which are
  consumed and generally not capitalized, such as
  textbooks, library books,
• and supplies for the classroom, office,
  custodial, maintenance and transportation areas.
  With the implementation of the States
• Standardized Account Code structure and GASB34,
  all equipment under 5,000 per item is now
  reflected in this category.
• Books and supply expenses represent approximately
  4 of total expenditures. It is anticipated that
  approximately 43,000 will be expended on books,
  supplies and other materials during 2008-09. This
  represents an decrease of 30,374 from 2007-08.
  The major reasons for this change is the large
  amount of start up supplies that were needed
  during our first year of operation.

44
Expenditure Classifications

• Contracted Services and Other Operating
  Expenditures
• Contracted Services and Other Operating
  Expenditures include items such as utilities,
  repairs, consultants, travel, rent, leases,
  postage, legal fees, liability insurance and
  other service contracts. These expenses represent
  approximately 29 of total expenditures.
• It is anticipated that approximately 290,028
  will be expended in this classification in
  2008-09. This represents a increase of 46,351
  from 2007-08. The increase is mainly due to the
  need to rent four additional classrooms for our
  increasing student body and staff.

45
General Fund Balance
46
Multi-Year Projections

• Often, looking at one or two years of financial
  data will not provide the reader with the ability
  to observe financial trends. Accordingly, in this
  section, the Charter provides one year of prior
  data, the budget for the current year and three
  years of projected data for the Charter Schools
  General Fund. The projections take into
  consideration economic forecasts for the State of
  California, local growth trends as determined by
  Washington Unified School Districts consultants
  and a variety of other issues. Most projections
  for future years are calculated at 4.5 increase
  for staff

47

• Insert 5 year budget

48
State Reports

• Sacs