D3+Narrative

D3 Narrativetoc

Narrative Introduction
//**Below you will find Draft 2.0 of the narrative (as of 10/11/11)**// that was created by the WCEA-WASC Core Team, temporarily formatted in this Wiki. All comments and edits should be included at the **bottom of the document** below the narrative. In order to allow for continuity of the document and clarity of revisions, all focus group members should write bulleted notes below the narrative.

Category D: Resource Management and Development

D3: School Finance Resources Criterion

To what extent... Are the school’s financial resources adequate to fulfill its mission and programs? Are the school’s financial operations conducted with integrity and in accordance with acceptable accounting practices?


 * __Focus Group Findings__

The school resources are adequate to carry out its mission, programs, and to promote student achievement of the ESLR’s. The systems and structures in place ensure shared accountability, diligence in planning, and oversight to ensure sound fiscal management. The school conducts its financial operations with integrity, which is seen through the annual audit, the oversight provided by the Finance Committee, the Investment Sub-Committee, and the Board of Trustees. Although the school maximizes the resources that it has to support the academic, social and spiritual learning experiences of students, reliance solely on tuition dollars may limit the future ability of the school to maintain and/or expand programs.

Financial Operations The school’s financial position is audited annually by an outside Independent Auditor. During the 2009-2010 school year, after a holistic process of review, the Finance Committee switched auditing firms from Armanino McKenna, LLP to Hood and Strong LLP. Annual audits are conducted in accordance with Generally Accepted Accounting Principals (GAAP). The audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. It includes a test of the school’s internal controls related to accounting policies and procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

At the conclusion of each annual audit, the auditing firm presents their findings to the Finance Committee (September Meeting) and then the Board of Trustees (October Meeting). The presentation includes a statement of the school’s financial position, of activities and changes in net assets, cash flows, and notes regarding the financial statements. In the final report from the auditing committee they present any communication of significant deficiencies and other control deficiencies. Under the oversight of the finance committee, those significant and control deficiencies are then addressed by the school staff. Progress on addressing those deficiencies are presented to the Finance Committee during their scheduled meetings.

The Business Office has established a system of checks and balances to ensure that all financial transactions are performed with integrity. All expense reports and requests for purchase orders from faculty and staff must be approved and signed by the department chair or immediate supervisor. All checks approved for payment from the school account must contain two signatures. Bi-annually there is a review by the Principal and President of all accounts paid and payroll. Only four people are authorized to sign checks at the school, including the President, Principal, Director of Finance and Director of Site Services. These signatories are approved annually by the Board of Trustees.

Furthermore, clear accounting procedures are in place to ensure integrity in all financial operations. These are outlined in the Business Office procedure manual and the personnel guide. These procedures are reviewed annually with faculty and staff, and included in new teacher orientation.

Financial Resource Planning The Board of Trustees sets tuition annually, approves the annual strategic financial plan and approves the school’s check signatories. Under the direction of the Board of Trustees, the Finance Committee works closely with school staff to review the strategic financial plan, and provide feedback for necessary revisions. The process of developing the strategic financial plan includes members of the leadership team and the Finance Committee. This sets the parameters for the annual budgeting process, which is “bottom-up” by design. It includes input from all departments, department members, and administration in anticipating needs for the school community. Furthermore, each department receives a monthly financial report, and multi-year trend data, to assess current spending patterns alongside anticipated needs. Working collaboratively with department chairs and administration allows for the development of a responsive budget in alignment with the school’s mission.

The strategic financial planning process is a multi-year process looking out over five years to allow for long-range planning. Although the fluctuation in the economy, enrollment, and the demand for tuition assistance has impacted the reliability of forecast numbers, it allows for the school to better anticipate future areas of risk.

In addition to the Finance Committee, the Board of Trustees also established a sub-committee of the Finance Committee to specifically look at and monitor our investments. The Investment Sub-Committee is overseen by the Finance Committee and meets quarterly to review the school’s investment earnings, monitor the reserves and re-balance funds as needed. The school’s investment accounts are managed by Christian Brothers Investment Services, INC. (CBIS), who presents periodically, and when needed, to the Investment Sub-Committee the school’s investment reports.

The objectives of the school’s investments are to:
 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Preserve Capital
 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Maintain Liquidity
 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Achieve Optimal Long-Term Total Return
 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Adhere to Donor Instructions

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">The school’s Operating Reserves are funds that have been accumulated and set aside to be drawn upon if necessary, and has the following three components:
 * 1) <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Unrestricted: a safety net fund available to cover budget deficits due to an enrollment shortfall or unanticipated increase in operating costs
 * 2) <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Capital reserves: funds set aside for replacement and major maintenance of physical plant, structures, and technology replacement
 * 3) <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Quasi-endowment: funds set aside that provide investment income. In recent years, this income has been used to provide for tuition assistance.

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">The reserves are monitored by the Board of Trustees and discussed on an annual basis.

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Tuition Assistance <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">As a result of the current economy and the increase in unemployment, especially in Alameda County, Moreau Catholic has seen a rapid increase in the need for families to receive tuition assistance dollars. During the spring of 2010, after a review of the tuition assistance applications, the Board of Trustees, at the recommendation of staff, decided to increase the tuition assistance dollars beyond the approved strategic financial plan in order to meet the needs of students. Between the 2009-2010 school year and the 2010-2011, the school saw a 55% increase in tuition assistance dollars, to approximately $1.3 million. The increase in dollars for tuition assistance allowed more students to attend Moreau Catholic, where without that assistance, would not have been able to afford tuition payments. That year, the school saw its first deficit budget. The Brothers of Holy Cross, in partnership with the Board of Trustees, approved an deficit budget in order to meet the needs of our families. That year, the Brothers of Holy Cross also waived their sponsorship fee in order for that money to go toward tuition assistance.

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">During the spring of 2011, we similarly saw the need for more tuition assistance dollars and distributed approximately $1.4 million for the 2011-2012 school year. Unfortunately, again we have not been able to meet the needs of all families. The 2011-2012 budget was also a deficit budget. || <span style="background-color: transparent; color: #000000; display: block; font-family: Arial; font-size: 14.6667px; text-align: center; vertical-align: baseline;">__Evidence__


 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Strategic Financial Plan
 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Annual Audit


 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Finance Committee Agendas and Minutes
 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Investment Sub-Committee Agendas and Minutes


 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Annual Audit


 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Finance Committee Minutes and Agendas


 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Finance Committee Minutes and Agendas


 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Business Office Procedure Manual
 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Personnel Guide Policies and Procedures


 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Personnel Guide


 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Strategic Financial Plan


 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Annual Budgeting Process
 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Department Budgets


 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Finance Committee Minutes
 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Investment Sub-Committee


 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Statement of Investment Policies and Objectives, rev 2010


 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Statement of Investment Policies and Objectives, rev 2010


 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Investment Sub-Committee Meetings


 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Board of Trustees Minutes and Finance Committee Minutes
 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Tuition Assistance Data ||

**Focus Group Comments**
Please insert any comments or edits to the narrative in this space. These comments will be integrated into future versions of the narrative.

Under Tuition Assistance Last paragraph please take out the word furthermore, change it to say the 2011-2012 was also a deficit budget. ** DONE **