CHARTER SCHOOLS

Charter schools are unique entities — running like a business,
acting like a nonprofit, and subject to regulations like a government

Charter School Distinctiveness

Charter schools are unique entities — running like a business, formed as a nonprofit and subject to regulations like a government. They require professionals with a diverse background much like ours to fully understand the complexities and challenges that charter schools face. For example, money is received from the public and must be utilized and managed like a business. There are no owners, and the governing body ultimately responsible for the entity is the board of governance. We have often found that the personality and strength of the academic leaders of the school drive much of the success and direction of the school, although the decisions are made by the board. In addition, understanding the population and focus of the children and parents is crucial in providing financial consulting assistance to charter schools. As you can see, there are so many special aspects to these unique entities, and the professionals at Grennan Fender Hess & Poparad, LLP have dedicated significant resources and many years of experience and research to this industry.

At Grennan Fender Hess & Poparad, LLP our mission is to accelerate success through financial clarity.

other services

Audit & Assurance

We understand the annual audit can bring additional stress and can sometimes disrupt the normal flow of your day-to-day business. The professionals at Grennan Fender Hess & Poparad, LLP make this process smooth, friendly and educational for all of the stakeholders of your school. Our approach is to thoroughly understand your school and financial reporting requirements through detailed planning and open communication. This allows for a complete understanding of the process and ensures our performance is conducted in the most friendly, effective and efficient manner.

Professional standards through the American Institute of Certified Public Accountants allow us to offer different levels of assurance on financial statements. Those levels of assurance include audits, reviews, compilations and agreed upon procedures. Please contact us to help you determine which level of service best meets your needs.

Financial Statement Audit Defined

A financial audit, or audit of financial statements, is the examination by an independent third party of the financial statements of a company resulting in the publication of an independent opinion on whether or not those financial statements are relevant, accurate, complete and fairly presented.

Audits exist to add credibility that the financial statements fairly represent the organization’s position and performance. The financial statements are considered crucial to the decisions of all stakeholders, such as the IRS, creditors and regulators.

Financial Statement Review Defined

A review is substantially less in scope than an audit. A review consists of making detailed inquiries, understanding the organization and performing analytical procedures which result in a review report on the financial statements.

A financial statement review is the middle ground between an audit and compilation. It results in less expense and work than an audit yet still requires the expertise and experience of a CPA. A review makes sure your company’s financial statements are consistent and not questionable because inquiry and analytical procedures are performed on the financial statements.

Financial Statement Compilation Defined

A compilation is limited to presenting organization- or company-prepared financial information in a proper financial statement format, without expressing an opinion.

Through compilations, we rely on our knowledge of accounting principles and get a general understanding of your company to present a representation of your management without an opinion. Compilations do not require inquiries of management or analytical procedures.

Agreed Upon Procedures

With an agreed upon procedure engagement, we work with your company to define the scope of specific procedures. Specific procedures allow for us to target specific activities in an organization. These procedures can include specific tests or reports depending on your company’s financial needs. In performing agreed upon procedures, the auditor provides no opinion, certification or assurance that the assertions being made in the financial statements are free from material misstatement.

Accounting

Charter schools are such unique entities — running like a business, acting like a nonprofit and subject to regulations like a government. It requires professionals with a varied background much like ours to fully understand the complexities and challenges charter schools face. For example, money is received from the public and must be utilized and managed like a business. There are no owners, and the governing body ultimately responsible for the entity is the board of governance. We have often found that the personality and strength of the academic leaders of the school drive much of the success and direction of the school, although the decisions are made by the board. In addition, understanding the population and focus of the children and parents is crucial in providing financial consulting assistance to charter schools. Clearly, there are many diverging aspects to these unique entities, and the professionals at Grennan Fender McCrady Hess & Poparad, LLP have experience with them all due to their many years of experience, research and commitment to the industry.  

Budget

Being proactive is one of our firm’s core values, and the budget process is an excellent example to demonstrate proactive management.  A budget is never perfect — it’s an estimate, built on industry experience, historical fiscal and operational activities and wish list items necessary to run a school.  Budgeting is directly connected with the concept of proper fiscal guidance, and it is necessary for proper monitoring and required for maintaining accountability.  We work shoulder-to-shoulder with your school’s management team to build budgets from the ground up.  We work with management to implement the proper monitoring and oversight processes to provide your management team and board of directors reliable and continuous reporting. As the school year continues, operational and fiscal attributes naturally evolve, and as a result, ongoing budget maintenance is critical to continuous fiscal responsibility.

Compliance

Charter schools are subject to numerous and complex regulatory requirements. One of the most important compliance measures relates to the fiscal operations of the school.  Things like district financial reports, program cost reports, red book and federal tax can be overwhelming for management to keep up with but vital to keeping the doors open to provide our children the best education possible.  Our compliance services are designed to monitor and track compliance with your regulatory requirements throughout the year.  We proactively work with management to ensure the school is fully compliant with its fiscal reporting responsibilities.