Common use of Budget Variance Clause in Contracts

Budget Variance. Budget Variance = Actual Total Revenues ÷ Projected Total Revenues in the Charter School’s Board- Approved Budget The budget variance depicts actual versus projected incoming revenues for a fiscal year. This indicator is important because revenues drive the development of a school’s budget. While the per-pupil funding is the primary revenue source for charter schools, there are other sources (e.g. federal funds, grants, other state funds) that provide the basis for determining costs such as staffing and supplies. A budget based on revenues that are significantly more than its actual revenues may be at-risk of not meeting all of its budgeted expenses. Budgeted revenues that do not exceed actual revenues would not have a significant impact to the risk assessment rating scale. This indicator accounts for 10 percent of a school’s aggregate final risk assessment. Low Acceptable Moderate High Significant Variance is greater than (>) 99% Variance is between 96% – 98% Variance is between 94% – 95% Variance is between 91% – 93% Variance is less than (<) 90%

Budget Variance. Budget Variance = Actual Total Revenues ÷ Projected Total Revenues in the Charter School’s Board- Board-Approved Budget The budget variance depicts actual versus projected incoming revenues for a fiscal year. This indicator is important because revenues drive the development of a school’s budget. While the per-pupil funding is the primary revenue source for charter schools, there are other sources (e.g. federal funds, grants, other state funds) that provide the basis for determining costs such as staffing and supplies. A budget based on revenues that are significantly more than its actual revenues may be at-risk of not meeting all of its budgeted expenses. Budgeted revenues that do not exceed actual revenues would not have a significant impact to the risk assessment rating scale. This indicator accounts for 10 percent of a school’s aggregate final risk assessment. Low Acceptable Moderate High Significant Variance is greater than (>) 99% Variance is between 96% – 98% Variance is between 94% – 95% Variance is between 91% – 93% Variance is less than (<) 90%