Staff has reviewed the schools fourth quarter financial reports that - - PDF document

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Staff has reviewed the schools fourth quarter financial reports that - - PDF document

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J OHN S.S. K IM D AVID Y. I GE C HAIRPERSON G OVERNOR STATE OF HAWAII STATE PUBLIC CHARTER SCHOOL COMMISSION (AHA KULA HOMANA) 1111 Bishop Street, Suite 516, Honolulu, Hawaii 96813 Tel: (808) 586-3775 Fax: (808) 586-3776 DATE OF

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SLIDE 1

DAVID Y. IGE GOVERNOR STATE OF HAWAII STATE PUBLIC CHARTER SCHOOL COMMISSION (ʻAHA KULA HOʻĀMANA) 1111 Bishop Street, Suite 516, Honolulu, Hawaii 96813 Tel: (808) 586-3775 Fax: (808) 586-3776 JOHN S.S. KIM CHAIRPERSON

DATE OF SUBMITTAL: September 11, 2019 MEETING DATE: TO: FROM: AGENDA ITEM: September 12, 2019 John Kim, Chairperson State Public Charter School Commission Sione Thompson, Executive Director State Public Charter School Commission

  • IV. Presentation/Action on Charter Schools Fourth Quarter Financial Performance

Report SY 2018-2019 I. DESCRIPTION Presentation on financial performance of charter schools for fourth quarter of school year 2018- 2019 II. AUTHORITY Hawaii Revised Statutes §302D-17 provides that “(a) An authorizer shall continually monitor the performance and legal compliance of the public charter schools it oversees, including collecting and analyzing data to support ongoing evaluation according to the charter contract.” The State Public Charter School Contract requires schools to prepare and submit quarterly financial reports to the Commission, which includes a balance sheet, income statement, and statement of cash flows. The quarterly financial reports are key documents that provide the necessary financial information needed by the Commission to perform periodic financial monitoring of a school, which is a component of its general oversight function. Staff has reviewed the schools’ fourth quarter financial reports that involved analyzing the schools’ financial statements and measuring its performance against the financial performance framework.

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SLIDE 2

III. BACKGROUND The Commission’s Financial Performance Framework utilizes six ratios included in a risk assessment model that measures annual financial performance. Each indicator is given a score of 1 to 5 according to the framework metrics and those scores are utilized to determine an overall risk assessment score ranging from “low” to “significant.” The information provided by the of schools for this risk assessment is unaudited, self-reported financial information. The formula to calculate the weighted aggregate assessment score for each school and a description of each measure are represented in the tables below:

Ratio What it Means Current Ratio Identifies if a school has enough current assets to pay

  • ff its current liabilities

Year-end Unrestricted Indicates how many days a Days’ Cash on Hand school can pay its expenses without another inflow of cash Budget Variance Identifies whether or not a school is accurately projecting revenues, and consequently, budgeting appropriately Total Margin Measures the surplus or deficit a school yields out of its total revenues Debt to Assets Ratio Measures the amount of liabilities a school owes versus the assets it owns Cash Flow Measures a school’s change in cash balance from one year to another

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SLIDE 3

IV.

PRESENTATION The Fourth Quarter Financial Statement Template (Exhibit 1) utilized by the schools in reporting for Fiscal Year 2018-2019 introduced the Financial Performance Framework Risk Assessment Calculator as a tool incorporated into the reporting template workbooks. This tool allows schools to see their Financial Performance Risk Assessment results by automatically populating the financial information provided by the school in the workbooks of the template into a calculator embedded into the final workbook of the template to illustrates how the schools’ reported data translates into the Financial Performance Framework Risk Assessment indicators and metrics. The calculator allows both the Commission and the schools the ability to monitor Financial Performance using the same methodology and fiscal indicators as approved by the Commission and prescribed in the charter contract. The calculator also eliminates any uncertainty in Financial Performance Framework Risk Assessment standing for schools and the Commission. Exhibit 2 incorporates financial information provided by the charter schools utilizing the template provided in Epicenter for the period ending June 30, 2019 of the fiscal year into a Compiled Financial Performance Risk Assessment that illustrates the financial health of all schools using the metrics and formulas outlined in the tables. As represented in the Financial Performance Framework Fourth Quarter Fiscal Year 2019 Risk Assessment (Exhibit 2), based on the self-reported fiscal data provided by the schools, all schools received a score of “Low,” “Acceptable,” or “Moderate.” Further analysis reveals that charter schools as a whole received a score of “Low,” “Acceptable,”

  • r “Moderate” on 204 of 216 total individual indicators, a rate of 94%. These results are

encouraging as they indicate that all schools in the portfolio are in position to comply with these requirements of the Financial Performance Framework of their contracts for fiscal year 2018-19 if validated through finalized independent audit reports due November 1st, 2019 to the Commission. Currently, there is one school that received a Notice of Concern for their risk assessment results for fiscal year 2018 and provided a Corrective Action Plan to ensure compliance for the Financial Performance Framework. Risk assessment results for the fourth quarter fiscal year 2018-19 indicate this school is in a reasonable position to fall within the range of “Acceptable” under the risk assessment model of the Financial Performance Framework.

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SLIDE 4

EXHIBIT 1 Financial Performance Framework 4th Quarter Reporting Template for Fiscal Year 2018-2019

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SLIDE 5

Please see the following web address to view Presentation to Charter Schools: www.youtube.com/watch?v=v288aVVpYG8&t=2386s

The Every Student Success Act (ESSA) implemented a new per-pupil expenditure (PPE) reporting requirement. Each Charter School must prepare an annual State report card that includes the per-pupil expenditures of F

Per Pupil Expenditures Calculation : by Fiscal Year 2018-19

Instructions/Notes

Expenditures State / Local Funds

No need to enter information in this cell. Information is pulled from another schedule or based on a formula.

Federal Funds [2]

Enter Information in this cell.

Total $0.00 Please use accrual accounting for expenditure reporting and only enter data into the yellow highlighted areas. Official [4] : Data to be provided by DOE PPE #DIV/0! PPE #DIV/0! #DIV/0!

Data to be provided by Charter Schools: [1] Expenditures of State / Local Funds, [2] Expenditures of Federal Funds, and [3] Total Expenditures Data to be provided by DOE: [4] Official Enrollment Count For questions, please contact Scott Hall, SPCSC Financial Performance Officer, at (808) 586-3835 or email scott.hall@spcsc.hawaii.gov.

Total

HAWAII STATE DEPARTMENT OF EDUCATION

HawaiiPublicSchools.org

EXCLUDE INCLUDE Exclude all of the following cost items:

  • Nonimposed Fringe for State (General) Funded Payroll
  • Community services (After School Programs, etc.)
  • Student Activity Funds (Local School Funds)
  • Private Donations/Grants (OHA, Kamehameha Schools, etc.)
  • Capital Outlay (Capital Improvement Projects)
  • Debt Service

Include all other cost items, including, but not limited to:

  • Instruction, Instructional Support, Student Support Services for Regular

Education, Special Education, Early Learning

  • School Administration
  • School Food Services
  • Student Transportation Services
  • Facility Operations and Repair & Maintenance

OTHER SPECIAL GUIDELINES

  • Expenditures of Impact Aid funds must be included in State/Local, as Impact Aid is considered Federal funds intended to replace local tax revenue
  • Expenditures for the School Food Service program must be included in Federal, as school food service program revenue is considered part of the

nonprofit school food service account (NSFSA), which has a Federal identify (per 7 CFR 210).

The DUE DATE for transmitting this COMPLETED FORM to the Commission Office for the Twelve Months Ended June 30, 2019 is: July 31, 2019

[1] [3] State / Local Funds Federal Funds

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SLIDE 6

Page 1

Org ID ASSETS School Component Unit Current Assets 1 Cash and Cash Equivalents 2 Accounts Receivable net of doubtful accounts 3 Grants Receivable - State 4 Grants Receivable - Federal 5 Grants Receivable - Private 6 Contributions Receivable 7 Due from related parties 8 Prepaid Expenses 9 Short-Term Investments 10 Other: 11 Other: 12 TOTAL CURRENT ASSETS

  • Noncurrent Assets

Capital Assets 13

  • Land and Buildings

14

  • Building/Leasehold Improvement

15

  • Furniture and Equipment

16

  • Less Accumulated Depreciation

17 Net Capital Assets

  • 18

Restricted cash and cash equivalents 19 Long-Term Investments 20 Other: 21 Other: 22 TOTAL NONCURRENT ASSETS

  • 23

TOTAL ASSETS

  • LIABILITIES AND NET ASSETS

Current Liabilities 24 Accounts Payable 25 Accrued Expenses 26 Deferred Revenue 27 Due to related parties 28 Current Debt Payable 29 Current Lease Obligations Payable 30 Other: 31 Other: 32 TOTAL CURRENT LIABILITIES

  • Noncurrent Liabilities

33 Noncurrent Lease Obligations 34 Long-Term Debt 35 Other: 36 Other: 37 TOTAL NONCURRENT LIABILITIES

  • 38

TOTAL LIABILITIES

  • NET ASSETS

39 Investment in capital assets (net of related debt) Restricted: 40

  • Temporarily:

41

  • Permanently:

42 Unrestricted: 43 TOTAL NET ASSETS

  • 44

TOTAL LIABILITIES AND NET ASSETS

  • Statement of Net Assets (Balance Sheet)

June 30, 2019 NAME: The DUE DATE for transmitting this COMPLETED FORM to the Commission Office for the Twelve Months Ended June 30, 2019 is: July 31, 2019

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SLIDE 7

Page 1

NAME: Org ID

For the Twelve Months Ended June 30, 2019

OPERATING REVENUES Budget School Component Unit 1 Grants - State Per Pupil 2 Grants - State Facilities 3 Grants - State Other 4 Grants - Federal 5 Grants - Private 6 Nutrition Funding - Federal 7 Nutrition Funding - Fees 8 Other Program Fees 9 Contributions, in-kind 10 Contributions, cash 11 Transportation Fees 12 SPED Reimbursements 13 Other: 14 Other: 15 TOTAL OPERATING REVENUES

  • OPERATING EXPENSES

16 Administration 17 Instructional Services

  • 18

Pupil Services

  • 19

Operation & Maintenance of Plant

  • 20

Benefits and Other Fixed Charges

  • 21

Community Services

  • 22

Other: 23 Other: 24 TOTAL OPERATING EXPENSES

  • 25

TOTAL OPERATING GAIN/(LOSS)

  • NONOPERATING REVENUE

26 Grants - Private 27 Contributions, in-kind 28 Contributions, from Component Unit 29 Contributions, Other 30 Rental Income 31 Interest/Investment Income 32 Other: 33 Other: 34 TOTAL NONOPERATING REVENUE

  • NONOPERATING EXPENSES

35 Long-Term Interest

  • 36

Other:

  • 37

TOTAL NONOPERATING EXPENSES

  • 38

TOTAL NONOPERATING GAIN/(LOSS)

  • 39

CHANGES IN NET ASSETS:

  • 40

Other: 41 NET ET A ASSET SSETS A S AT B BEG EGINNING O OF YEA YEAR 42 NET ET A ASSET SSETS A S AT EN END O OF YEA YEAR

  • Statement of Revenues, Expenses, and Changes in Net Assets (P & L)

For the Twelve Months Ended June 30, 2019 The DUE DATE for transmitting this COMPLETED FORM to the Commission Office for the Twelve Months Ended June 30, 2019 is: July 31, 2019

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SLIDE 8

NAME:

CASH FLOWS FROM OPERATING ACTIVITIES School Component Unit Increase/(Decrease) in net assets

  • 1

Adjustments to reconcile increase/(decrease) in net 2 assets to net cash provided by operating activities 3 Change in A/P 4 Change in accrued expenses 5 Change in grants receivable 6 Change in other receivables 7 Change in other assets 8 Change in other liabilities 9 Depreciation 10 Net cash provided by operating activities

  • CASH FLOWS FROM INVESTING ACTIVITIES

11 Purchases of property and equipment 12 Sale of property and equipment 13 (Increase) in deposits 14 Decrease in deposits 15 Other 16 Net cash provided/(used) by investing activities

  • CASH FLOWS FROM FINANCING ACTIVITIES

17 Cash provided from sale of debt instruments 18 Cash used retire/service debt 19 Other 20 Net cash provided/(used) by financing activities

  • NET INCREASE/(DECREASE) IN CASH
  • 21

CASH BALANCE, JUNE 30, 2018 22 CASH BALANCE, JUNE 30, 2019

  • Cash Balance from Balance Sheet, Cell F10
  • RECONCILIATION OF INCREASE/ (DECREASE) IN

NET ASSETS TO NET CASH PROVIDED BY OPERATING ACTIVITIES Statement of Cash Flows

For the Twelve Months Ended June 30, 2019 The DUE DATE for transmitting this COMPLETED FORM to the Commission Office for the Twelve Months Ended June 30, 2019 is: July 31, 2019

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SLIDE 9

Page 1

NAME: ORGID Line Functional Category

Expenses FTE

100 Administration

  • 0.0

110 Subtotal - Local School Board

  • 111 Contracted Services

112 Travel and other expenses 113 Supplies & Materials 120 Subtotal - School Leadership

  • 0.0

121 Salaries - Professional 122 Contracted Services 130 Subtotal - Business and Finance

  • 0.0

131 Salaries - Professional 132 Contracted Services 140 Subtotal - Human Resources

  • 0.0

141 Salaries - Professional 142 Contracted Services 150 Subtotal - Legal Services

  • 0.0

151 Salaries - Professional 152 Contracted Services 160 Subtotal - Info. Management & Technology

  • 0.0

161 Salaries - Professional 162 Contracted Services 163 Supplies and Materials 164 Depreciation for Information Technology 170 Subtotal - Development

  • 0.0

171 Salaries - Professional 172 Contracted Services 173 Fundraising 180 Subtotal - Other Administration

  • 0.0

181 Salaries - Clerical 182 Recruitment/Advertising 183 Travel and other expenses 184 Supplies and Materials 185 Other: Dues, Licenses, Permits, Admin Meetings 200 Instructional Services

  • 210 Subtotal - Instructional Leadership
  • 0.0

211 Salaries - Professional 212 Salaries - Clerical 213 Contracted Services 214 Supplies and Materials 215 Travel and other expenses 220 Subtotal - Classroom and Specialist Teachers

  • 0.0

221 Salaries - Teachers, Classroom 222 Salaries - Teachers, Specialists 230 Subtotal - Other Teaching Services

  • 0.0

231 Salaries - Professional 232 Salaries - Nonclerical Paraprofessionals 233 Salaries - Clerical 234 Contracted Services 240 Subtotal - Professional Development

  • 0.0

241 Salaries - Professional 242 Contracted Services 243 Supplies and Materials Schedule of Functional Expenses - For School ONLY For the Twelve Months Ended June 30, 2019 TOTAL The DUE DATE for transmitting this COMPLETED FORM to the Commission Office for the Twelve Months Ended June 30, 2019 is: July 31, 2019

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SLIDE 10

Page 2

NAME: ORGID Line Functional Category

Expenses FTE

Schedule of Functional Expenses - For School ONLY For the Twelve Months Ended June 30, 2019 TOTAL The DUE DATE for transmitting this COMPLETED FORM to the Commission Office for the Twelve Months Ended June 30, 2019 is: July 31, 2019 244 Travel and other expenses 250 Subtotal - Guidance, Psychological & Testing

  • 0.0

251 Salaries - Professional 252 Salaries - Clerical 253 Contracted Services 254 Supplies and Materials 260 Subtotal - Materials, Equipment & Technology

  • 261 Textbooks & Related Media/Materials

262 Other Instructional Materials 263 Instructional Equipment 264 General Supplies 265 Other Instructional Services 266 Classroom Instructional Technology 267 Other Instructional Hardware 268 Instructional Software 269 Depreciation for Instructional Equipment 300 Pupil Services

  • 0.0

310 Salaries - Pupil Services 320 Health Services 330 Student Transportation (to and from school) 340 Depreciation of Transportation Vehicles 350 Food Services 360 Athletic Services 370 Other: Supplies, Travel Expenses 400 Operation & Maintenance of Plant

  • 0.0

410 Salaries - Operation & Maintenance of Plant 415 Utilities 420 Maintenance of Buildings & Grounds 425 Maintenance of Equipment 430 Networking and Telecommunications 435 Depreciation of Equipment, Building, & Grounds 440 Rental/Lease of Buildings & Grounds 445 Rental/Lease of Equipment 450 Other: Furniture & Equipment 455 Other: Custodial supplies 460 Other: 500 Benefits and Other Fixed Charges

  • 510 Employee Retirement

520 Fringe Benefits 530 Insurance (non-employee) 560 Short-Term Interest 570 Other: 600 Community Services

  • 610 Dissemination Activities

620 Civic Activities 700 Non-Operating Expenses

  • 720 Long-Term Interest

730 Other:

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SLIDE 11

Page 3

NAME: ORGID Line Functional Category

Expenses FTE

Schedule of Functional Expenses - For School ONLY For the Twelve Months Ended June 30, 2019 TOTAL The DUE DATE for transmitting this COMPLETED FORM to the Commission Office for the Twelve Months Ended June 30, 2019 is: July 31, 2019 800 TOTALS

  • 0.0
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SLIDE 12

Page 1

NAME: ORGID Line Functional Category

Expenses FTE

Sources Used to Fund Facilities Expenses 1 Grants - State Per Pupil 2 Grants - State Facilities 3 Grants - State Other 4 Grants - Federal 5 Grants - Private 6 Other 7 TOTAL F FACILITIES R ES REVEN EVENUES ES 400 Operation & Maintenance of Plant

0.0

410 Salaries - Operation & Maintenance of Plant

0.0

415 Utilities 420 Maintenance of Buildings & Grounds 425 Maintenance of Equipment 430 Networking and Telecommunications 435 Depreciation of Equipment, Building, & Grounds 440 Rental/Lease of Buildings & Grounds 445 Rental/Lease of Equipment 450 Other: Furniture & Equipment 455 Other: Custodial supplies 460 Other: 700 Non-Operating Facilities Related Expenses 720 Long-Term Interest Related to Facilities 730 Other: 800 TOTAL F FACILITIES EXPEN ES EXPENSES SES

0.0

Schedule of Facilities Revenues & Expenses - For SCHOOL ONLY For the Twelve Months Ended June 30, 2019 TOTAL The DUE DATE for transmitting this COMPLETED FORM to the Commission Office for the Twelve Months Ended June 30, 2019 is: July 31, 2019

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SLIDE 13

NAME: ORGID 0

Form C6 Federal grant information (Do not include SPED, School Nutrition or Impact Aid funds) Title I

CFDA #84.010

Title IIA

CFDA #84.367

Title III

CFDA #84.365A

Prog ID 18902 funds to schools Prog ID 20696 Non-HQT to HQT Prog ID 18085 English Language Learner Prior-year carryforward Prior-year carryforward Prior-year carryforward

  • New funds

New funds New funds

  • Total revenue
  • Total revenue
  • Total revenue
  • Employee expenses

Employee expenses

  • Employee expenses
  • Non-employee expenses

Non-employee expenses Non-employee expenses

  • Total expenses
  • Total expenses
  • Total expenses
  • June 30 balance
  • June 30 balance
  • June 30 balance
  • Prog ID 18935 Parent Involvement

Prog ID 20697 Professional Development Other federal grants: Prior-year carryforward

  • Prior-year carryforward
  • Include below, using same format

New funds

  • New funds

School Improvement #84.377

Total revenue

  • Total revenue
  • Impact Aid

#84.041 Migrant Ed #84.011

Employee expenses

  • Employee expenses
  • Career and Technical

#84.048A

Non-employee expenses

  • Non-employee expenses

21st Century Community #84.287

Total expenses

  • Total expenses
  • Special Education

#84.027

Pre-K Grant 84.419A June 30 balance

  • June 30 balance
  • Prog ID 18927 School Improvement

Prior-year carryforward

  • New funds
  • Total revenue
  • Employee expenses
  • Non-employee expenses
  • Total expenses
  • June 30 balance
  • Prog ID 52003 Professional Development

Prior-year carryforward

  • New funds
  • Total revenue
  • Employee expenses
  • Non-employee expenses
  • Total expenses
  • June 30 balance
  • The DUE DATE for transmitting this COMPLETED FORM to the Commission Office for

the Twelve Months Ended June 30, 2019 is: July 31, 2019

Reminder: Payroll certifications or allowable alternative documentation is required for all employees paid with federal funds, including substitute teachers and training stipends.

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SLIDE 14

Financial Performance Framework Indicators

Form C7

Instructions/Notes Current Assets

  • No need to enter information in this cell. Information is pulled from another schedule or based on a formula.

Current Liabilities

  • Current Ratio

#DIV/0!

Cash

  • Total Exp - Deprec

*

  • deprec
  • #DIV/0!

Net Income

  • Net Revenue
  • Total Margin

#DIV/0!

Total Liabilities

  • Total Assets
  • Debt to Asset Ratio

#DIV/0!

Cash, 6/30/18

  • Cash, 06/30/19
  • Cash Flow
  • Budgeted Revenue 2018-2019
  • Actual Revenue 6/30/19
  • Budget Variance

#DIV/0!

Financial Performance Framework Risk Assessment Calculator

Indicators Risk Risk Index Official School Name Org ID 2019 Risk Rating 2017 2018 2019 Avg. Risk Rating 2019 Risk Rating 2017 2018 2019 Risk Rating 2017 2018 2019 Risk Rating 2019 Risk Rating 4th Qtr Risk Rating #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

  • FALSE

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Unrestrictred days cash

Near Term Sustainability Budget (+,+,+) Margin, upward trend = 1 (-,+,+) Margin, up/down trend = 2 (+,-,+)or (+,+,-) Margin, up/down trend = 3 (-,-,+) or (+,-,-) or (-,+,-) Margin, up/down trend = 4 (-,-,-) Margin, downward trend = 5 Over 99% = 1 96%-98% = 2 94%-95%- = 3 91%-93% = 4 Less than 90% = 5 Low = 1 to 1.45 Acceptable = 1.5 to 2.45 Moderate = 2.5 to 3.45 High = 3.5 to 4.45 Significant = 4.5 or higher Total Margin Budget Variance Closure risk when operating at a deficit for a sustained period 25% Unable to meet budgeted expenses 10% Risk Assessment Results

The DUE DATE for transmitting this COMPLETED FORM to the Commission Office for the Twelve Months Ended June 30, 2019 is: July 31, 2019

*Please enter your school's identifying data and Fiscal Year 2017-2018 data into corresponding color coded cells above in the Financial Performance Framework Risk Assessment Calculator using your school data found in the data sheet below to calculate your school's 4th Quarter Fiscal Year 2018-2019 Financial Performance Risk Assessment score. 4th Qtr 2019 Financial Performance Framework Risk Assessment Calculator * Total of Days Cash for three current years/3 Annual scoring metric: More than 60 days,= 1 50-59 days, = 2 30-49 days, = 3 20-29 days, = 4 Less than 20 days, = 5 Less than 0.20 = 1 0.20-0.40 = 2 0.40-0.50 = 3 0.50-0.75 = 4 More than 0.75 = 5 (+,+,+) CF, upward trend = 1 (-,+,+) CF, up/down trend = 2 (+,-,+) or (+,+,-) CF, up/down trend = 3 (-,-,+) or (+,-,-) or (-,+,-) CF, up/down trend = 4 (-,-,-) CF, downward trend = 5 Inability to meet current

  • bligations 10%

Insufficient cash to meet its cash obligations 35% Not being able to pay back its debt 10% Financial instability over time 10% More than 1.5 = 1 1.35-1.5 = 2 1.20-1.35 = 3 1.0-1.2 = 4 Less than 1.0 = 5 Current Ratio Unrestricted Days Cash Debt to Assets Cash Flow

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SLIDE 15

EXHIBIT 2 Financial Performance Framework 4th Quarter Risk Assessment Projects for Fiscal Year 2018-2019

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SLIDE 16

Indicators

Risk Risk Index Official School Name Org ID 2019.0 Risk Rating 2017 2018 2019 Avg. Risk Rating 2019 Risk Rating 2017 2018 2019 Risk Rating 2017 2018 2019 Risk Rating 2019 Risk Rating 4th Qtr Risk Rating Waiʻalae Elementary Public Charter School 149 5.4 1 156 166 173 165 1 0.28 2 (48,659) 249,158 322,822 2 0.5% 10.3% 1.8% 1 100% 1 1.20 Low Kamaile Academy, PCS 275 5.9 1 223 243 276 247 1 0.12 1 1,025,224 880,444 1,231,803 1 11.1% 10.0% 0.8% 1 103% 1 1.00 Low Ka'ōhao School (formerly: Lanikai Elementary Public Charter School) 320 21.3 1 182 228 687 366 1 0.04 1 207,476 338,517 1,940,226 1 5.0% 7.8% 18.6% 1 108% 1 1.00 Low Laupāhoehoe Community Public Charter School 377 4.7 1 113 95 102 103 1 0.19 1 60,807 (36,465) 324,321 3 7.4% 4.5% 5.0% 1 118% 1 1.30 Low Waimea Middle Public Conversion Charter School 394 2.4 1 199 213 223 212 1 0.33 2 17,207 26,364 272,975 1

  • 4.8%

0.1%

  • 4.5%

4 110% 1 1.80 Acceptable Connections Public Charter School 396 8.6 1 187 256 305 250 1 0.09 1 545,755 553,238 462,711 1 18.5% 16.7% 14.5% 1 108% 1 1.00 Low Kanu o ka ‘Āina New Century Public Charter School 397 8.6 1 65 135 165 122 1 0.10 1 291,522 1,182,914 2,313,710 1 11.8% 17.3%

  • 8.1%

3 99% 2 1.60 Acceptable Nā Wai Ola Public Charter School 398 10.1 1 51 52 48 50 2 0.07 1 127,444 43,150 (8,772) 3 11.8%

  • 1.0%

5.1% 3 119% 1 2.15 Acceptable West Hawai‘i Explorations Academy 399 12.9 1 195 198 285 226 1 0.08 1 310,837 175,706 200,199 1

  • 4.3%

5.8% 10.6% 2 108% 1 1.25 Low Kualapu`u School: A Public Conversion Charter 411 3.5 1 158 178 208 182 1 0.26 2 301,748 436,753 381,977 1 11.5% 15.4% 1.1% 1 105% 1 1.05 Low Kula Aupuni Niihau A Kahelelani Aloha A New Century Public Charter School 466 13.2 1 191 95 127 137 1 0.06 1 12,475 (129,862) 24,580 3 12.2%

  • 7.8%

0.4% 3 94% 3 2.00 Acceptable Hālau Kū Māna Public Charter School 540 23.0 1 375 310 275 320 1 0.03 1 (76,286) (7,447) (100,183) 5

  • 2.6%
  • 0.8%

0.7% 4 105% 1 2.35 Acceptable Voyager: A Public Charter School 541 3.2 1 122 115 130 122 1 0.25 2 113,620 (19,390) 88,884 3 5.0% 1.8% 1.7% 1 99% 1 1.35 Low University Laboratory School 543 3.6 1 87 83 90 86 1 0.27 2 55,907 11,460 107,800 1 0.4% 2.3% 2.3% 1 102% 1 1.05 Low Myron B. Thompson Academy 544 17.6 1 512 560 626 566 1 0.06 1 756,021 430,234 740,872 1 16.3% 8.0% 8.1% 1 107% 1 1.00 Low Ka Waihona o ka Naʻauao Public Charter School 545 1.5 1 24 9 31 21 4 0.17 1 118,173 (264,909) 463,768 3 2.5% 0.2% 3.8% 1 110% 1 2.35 Acceptable Hakipuʻu Learning Center 546 4.6 1 62 102 158 107 1 0.21 2 (83,015) 251,601 97,117 2

  • 5.9%

9.4% 5.3% 2 100% 1 1.45 Low Ke Kula ʻo Samuel M. Kamakau Laboratory Public Charter School 547 7.9 1 157 130 222 170 1 0.10 1 97,675 (99,296) 334,382 3 13.6% 15.6% 31.6% 1 128% 1 1.30 Low Innovations Public Charter School 548 2.5 1 149 102 100 117 1 0.32 2 164,043 (211,093) (11,889) 4 0.5% 4.2% 1.3% 1 106% 1 1.50 Acceptable Ke Ana Laʻahana Public Charter School 549 5.2 1 340 306 298 315 1 0.19 1 88,256 (36,290) 65,965 3 8.3%

  • 3.7%

2.9% 3 102% 1 1.80 Acceptable Mālama Honua Public Charter School 550 7.5 1 186 228 260 225 1 0.12 1 233,997 217,493 266,943 1 23.6% 16.6% 11.7% 1 101% 1 1.00 Low Hawaiʻi Technology Academy (HTA) 551 2.3 1 97 123 111 111 1 0.37 2 (237,668) 768,454 168,946 2 3.3% 9.7% 37.1% 1 108% 1 1.20 Low Kamalani Academy 553 1.5 1

  • 23

37 30 3 0.80 5

  • 204,043

33,566 1

  • 6.7%

0.2% 1 126% 1 1.90 Acceptable Kihei Charter School 554 26.2 1 90 113 110 105 1 0.04 1 (708,556) 237,113 276,738 2 1.0% 1.9% 3.3% 1 100% 1 1.15 Low Kapolei Charter School 555 5.5 1

  • 152

226 189 1 0.18 1

  • 145,720

195,165 1

  • 22.5%

23.7% 1 98% 2 1.10 Low Ke Kula Niihau O Kekaha Learning Center 556 5.8 1 56 101 95 84 1 0.08 1 (101,203) 157,096 53,074 2 3.6%

  • 2.1%
  • 3.6%

4 102% 1 1.90 Acceptable Kua o ka Lā New Century Public Charter School 557 6.7 1 109 80 154 114 1 0.14 1 524,962 (11,842) 701,110 3 6.7%

  • 0.9%

17.8% 3 112% 1 1.80 Acceptable Alaka'i O Kaua'i 558 1.6 1

  • 24

24 4 0.63 4

  • 69,749

1

  • 3.1%

1 92% 4 2.50 Moderate The Volcano School of Arts & Sciences 560 3.6 1 52 39 44 45 3 0.25 2 41,289 (43,406) 85,129 3

  • 4.6%

5.8% 2.0% 2 107% 1 2.30 Acceptable Hawaiʻi Academy of Arts & Science Public Charter School 561 4.3 1 157 177 169 168 1 0.18 1 706,352 584,166 (27,345) 3 9.1% 2.9% 2.8% 1 110% 1 1.30 Low Ka ‘Umeke Kā’eo Public Charter School 562 2.7 1 254 251 302 269 1 0.32 2 108,186 478,626 696,053 1 11.0% 1.6% 13.4% 1 98% 2 1.15 Low Ke Kula ‘o Nāwahīokalani’ōpu’u Iki Lab Public Charter School 563 5.9 1 86 48 136 90 1 0.15 1 196,085 (762,574) 462,671 3 5.8%

  • 6.1%

1.6% 3 102% 1 1.80 Acceptable Kanuikapono Public Charter School 564 15.3 1 126 204 182 171 1 0.06 1 173,170 355,145 217,565 1 14.3% 18.8% 8.7% 1 99% 1 1.00 Low Kawaikini New Century Public Charter School 565 3.5 1 83 50 75 69 1 0.07 1 172,570 (113,860) 80,221 3

  • 0.4%
  • 9.2%

17.4% 4 98% 2 2.15 Acceptable Kona Pacific Public Charter School 566 2.2 1 10 10 47 22 4 0.42 3 4,765 8,555 234,188 1 0.4% 1.7% 7.2% 1 103% 1 2.15 Acceptable SEEQS: the School for Examining Essential Questions of Sustainability 567 3.6 1 57 84 82 75 1 0.18 1 219,173 109,252 59,076 1 3.1% 11.5% 2.3% 1 94% 3 1.20 Low (+,+,+) Margin, upward trend = 1 (-,+,+) Margin, up/down trend = 2 (+,-,+)or (+,+,-) Margin, up/down trend = 3 (-,-,+) or (+,-,-) or (-,+,-) Margin, up/down trend = 4 (-,-,-) Margin, downward trend = 5 Over 99% = 1 96%-98% = 2 94%-95%- = 3 91%-93% = 4 Less than 90% = 5 Closure risk when operating at a deficit for a sustained period 25%

Low = 1 to 1.45 Acceptable = 1.5 to 2.45 Moderate = 2.5 to 3.45 High = 3.5 to 4.45 Significant = 4.5 or higher

4th Qtr FY 2018-2019 Financial Performance Framework Risk Assessment Results

Inability to meet current

  • bligations 10%

Insufficient cash to meet cash obligations 35% Not being able to pay back debt 10% Financial instability over time 10% More than 1.5 = 1 1.35-1.5 = 2 1.20-1.35 = 3 1.0-1.2 = 4 Less than 1.0 = 5 Total of individual score for three years/3 Annual scoring metric: More than 60 days,= 1 50-60 days, = 2 30-50 days, = 3 20-30 days, = 4 Less than 20 days, = 5 Less than 0.20 = 1 0.20-0.40 = 2 0.40-0.50 = 3 0.50-0.75 = 4 More than 0.75 = 5 (+,+,+) CF, upward trend = 1 (-,+,+) CF, up/down trend = 2 (+,-,+) or (+,+,-) CF, up/down trend = 3 (-,-,+) or (+,-,-) or (-,+,-) CF, up/down trend = 4 (-,-,-) CF, downward trend = 5 Near Term Sustainability Budget

Risk Assessment Results

Current Ratio Unrestricted Days Cash Debt to Assets Cash Flow Total Margin Enrollment Variance Unable to meet budgeted expenses 10%