Common use of Mandatory Notification The School Clause in Contracts

Mandatory Notification The School. is aware they have to notify Commission within two calendar days when it has knowledge of any of the items listed in Section 20.2 of the Charter Contract. x Interview Additional Obligations Annual Renewal Meets Does Not Meet Comments Exhibit “A”: Financial Performance Framework‌ EXHIBIT “A” FINANCIAL PERFORMANCE FRAMEWORK Introduction The Financial Performance Framework (“Framework”) serves as a tool for the Commission to assess the financial health and viability of charter schools in its portfolio. The framework intends to provide a financial frame of reference based on current and past financial performance of charter schools. The indicators used in the framework are based on industry standard financial measures (e.g. ratios, variances) designed to be viewed in the aggregate with other complementary and supplementary information (e.g. timely and accurate financial and reporting practices, management practices). No single indicator or point in time data point gives a full picture of the financial situation of a school. Taken together, however, the indicators provide a qualitative assessment of the school’s near-term financial health, mid-term capacity, and long-term financial sustainability. Sustainability Indicators Debt to Asset Ratio Cash Flow Total Margin Planning & Budgeting Indicator Budget Variance Near-Term Indicators Current Ratio Unrestricted Days Cash Financial Performance Framework Financial Management & Oversight Financial Reporting Compliance Annual Audit Report, Financial Review, and Related Management Letters