Spreadsheet: ff6970e5-8e5d-476f-b023-58ebcb1503ec
Sheet: Sheet1

Unnamed: 0 | Application for an Open-Enrollment Charter School - Eighteenth Generation | Unnamed: 2
 | Estimated Revenues and Expenses - Year 0 Start-Up Budget
 | Instructions to Complete Budget Worksheet and Template
 | Please print instructions.
(A) Introduction
1. | Begin the budget process by reading these instructions in their entirety.
 | Read and follow the instructions in (B) and (C) for completing the year 0 budget worksheet and the year 0 budget template.
 | Once you have completed the budget worksheet, use the applicable amounts from that sheet's tables to complete the budget template.
 | *The worksheet does not include tables for determining every item in the budget template. It includes tables for only those items that have proved particularly difficult to estimate in the past.
2. | * * * Please refer to 19 Texas Administrative Code (TAC) §100.1015.
 | If there are any inconsistencies between the body of the application and the budget, neither the application nor the budget will be accepted, per 19 TAC §100.1015 (4)(A).
3. | Enter data in only the yellow-highlighted areas. The file's other cells are locked.
 | The terms "rows" and "columns" will be used as reference points.
4. | As a reminder, for those new to the application process, Year 0 is the plan year with no students.
5. | If your budget template estimates do not come from the budget worksheet, you must provide a detailed explanation of how you derived the estimates, per 19 TAC §100.1015 (1)–(3).
6. | Consider the following requirements and guidance in preparing the budget. The following list is not all inclusive.
 | (a) | The budget must adhere to Texas Education Code (TEC), §44.004.
 | (b) | The effectiveness of the budget, as a financial control tool, depends on adherence to the following basic principles:
 |  | >   Ensure that revenues are closely linked to expenses for consistent assumptions, and explain the assumptions used, as applicable.
 |  | >   Avoid overly optimistic revenue and expense projections (use conservative projections).
 |  | >   Use a budget process that provides periodic (monthly or quarterly) comparisons of budget to actual results so that differences can be acted on in a timely manner when necessary. Include in the periodic review processes to adjust for changes such as those related to inventories, bad debt expense, etc.
 |  | >   Put in place a reasonable process to allow the charter school to modify its budget.
 | (c) | Capital assets and investment projections should be considered using the accrual basis of accounting.
 | For further information, visit the following web page, and select Financial Accountability System Resource Guide (FASRG) Module 2, Budgeting.
 |  | http://www.tea.state.tx.us/index4.aspx?id=1222
7. | Refer to FASRG Module 10, Special Supplement to Financial Accounting and Reporting, Nonprofit Charter School Chart of Accounts, to ensure that the appropriate account codes are used. Module 10 is available on the following web page.
 |  | http://www.tea.state.tx.us/index4.aspx?id=1222
(B) Budget Worksheet Instructions
Click the "Year_0_Budget_Worksheet" tab to open the worksheet.
The purpose of the worksheet tables is to provide help with calculating those budget template items that have proved the most difficult to calculate in the past. Therefore, tables are provided for calculating several, but not all, budget template items.
1. | Name of Sponsoring Entity, Proposed Charter School and School Period
 | row 4 | Enter the name of the sponsoring entity/charter holder in the following cell. Once you have entered the name here, it will automatically appear in the cell in row 4 of the worksheet and year -0- Budget template.
 |  | Name of Sponsoring Entity/Charter holder
 | row 5 | Enter the name of the proposed charter school in the following cell. Once you have entered the name here, it will automatically appear in the cell in row 5 of the worksheet and year -0- Budget template.
 |  | Name of Proposed Charter School
 | row 6 | Enter the date range for the proposed charter school's start-up budget in cells D6 and F6 of the worksheet. (For example, enter 08/01/14 to 08/01/15.)
2. | ADA Revenue Table
 | rows        8–30 | As stated in item (A)4, year 0 is the plan year with no students. Therefore, for this year 0 budget worksheet, no ADA (students in average daily attendance) revenue table entries are needed or required. However, if you choose to, you can use the ADA revenue table to estimate ADA revenue for year 1–5 budget projections. (The table is also included in the worksheet for years 1–5, available in a separate Excel file.)
3. | Student:Teacher Ratios Table
 | rows        32–43 | The purpose of the student:teacher ratios table is to assist potential charter schools in determining appropriate student:teacher ratios given their circumstances, in accordance with TEC, §25.111, Student/Teacher [NAME], and §25.112, Class [NAME]. Because there are no students for year 0, it is not necessary to complete this table. The following instructions apply to years 1–5 and also appear in the instructions for completing those years' budget worksheet.
 | rows 38–43 | > For each year, enter in column (d) the total number of teachers that are required according to the student:teacher ratio specified in Section 4(i) of the application (Educational Plan).
 | rows 38–43 | > For each year, enter in column (e) the total number of teachers that have been budgeted for.
 | rows 38–43 | > For each year, enter in column (f) the number of the application page that corresponds to the information in that row.
 |  | *** The student teacher ratios should correspond to those in Section 4(i) of the application (Educational Plan).
4. | Payroll Costs Table (see the application's Attachment D and I)
 | rows        45–66 | The purpose of this table is to assist potential charter schools in determining reasonable salaries given those of other schools with similar enrollment and circumstances and in determining payroll costs based on those salaries.
 | rows        52–65 | > Enter the page number from the application associated with each position.
 |  | > Enter each comparable school's salary for each position (columns [b]–[d], rows 52–65). Column (e) will automatically calculate the average salary for each position.
 |  | > For budget year 0 (column [g]), enter the average salary amount from column (e) for each position (or an amount reasonably close to that amount), multiplied by the number of individuals to be employed in that position [column f]. Row 66, column (g), will automatically calculate the total salary amount.
 |  | > Use the salary amounts from column (g) in determining the amounts to enter in the object code 6100 series cells (starting with row 57) in the year 0 budget template.
5. | Number of Students Served at Comparable Schools (Year 1) Table
 | row 72 | Enter each comparable school's number of students served (columns [b]–[d]). Column (e) will automatically calculate the average enrollment.
6. | Proposed Charter School's Enrollment Cap Table
 | row 69 | Enter the proposed charter school's enrollment cap for each year.
7. | Professional and Contracted Services Tables
 | rows 74–97 | The purpose of the professional and contracted services (code 6200 series) table is to assist potential charter schools with calculations related to utilities and rentals/leasing. Enter the information asked for.
(C) Year 0 Budget Template Instructions
Click the "Year_0_Budget_Template" tab to open the template, and follow these instructions.
1. | Name of Sponsoring Entity and Charter School, Period
 | row 4 | Note that the name of the sponsoring entity/charter holder that you entered in the worksheet instructions in (B) automatically appears in cell (D4) of the template.
 | row 5 | Note that the name of the proposed charter school that you entered in the worksheet instructions in (B) automatically appears in cell (D5) of the template.
 | row 6 | Enter the date range for the proposed charter school's start-up budget in cells D6 and F6 of the year 0 budget template. (For example, enter 08/01/14 to 08/01/15.)
2. | Summary of Estimated Net Assets and Expenses Report
 | rows            8–25 | The Summary of Estimated Net Assets and Expenses report provides a brief summary of the data entered in the Estimated Net Assets and Revenue and Estimated Expenses tables. The information in the Summary of Estimated Net Assets and Expenses report will be calculated automatically once you complete the Estimated Net Assets and Revenue and Estimated Expenses tables. No data entry is required, with the exception of the information in row 11 (Net Assets at the Beginning of the Year).
 | row 25 | Once you have completed the year 0 budget template, enter the amounts that appear in row 25 (Net Asset Amounts at the End of Year 0) of this template in row 11 of the year 1 budget template (Net Assets at the Beginning of the Year [Year 1]), provided in a separate Excel file.
3. | Estimated Net Assets and Revenue
 | rows           29–53 | * Enter data in the yellow-highlighted areas only. Totals and subtotals will be calculated automatically.
 |  | * Enter net assets and revenue amounts according to the account codes specified in [NAME] 10 of the FASRG (link provided in [A]7 of these instructions).
 |  | * In each row, enter the applicable account code classification, a description of the net asset or revenue, the dollar amounts, and information on the source of funds, such as cross-references to or explanations or descriptions of verifiable documentation.
 |  | * Refer to the information in the year 0 budget worksheet in completing this part of the budget template.
 | rows 29–38 | > Enter the beginning cash balance and any start-up capital.
 | rows 42–51 | > Enter any verifiable revenue, such as fundraising revenue. Include in the source notes source and bank statement attachments that can be used to verify revenue.
 | If there are any inconsistencies between the body of the application and the budget, neither the application nor the budget will be accepted, per 19 TAC §100.1015 (4)(A).
4. | Estimated Expenses
 | rows           55–118 | * Enter data in the yellow-highlighted areas only. Totals and subtotals will be calculated automatically.
 |  | * Enter expense amounts according to the account codes specified in [NAME] 10 of the FASRG (link provided in [A]7 of these instructions).
 |  | * In the "Source Notes" column, enter information on documentation that can support the expense amounts entered.
 |  | * Refer to the information in the year 0 budget worksheet in completing this part of the budget template.
 | rows 57–68 | > Enter payroll costs (refer to the information you entered in the budget worksheet).
 | rows 71–83 | > Enter professional and contracted services expenses (refer to the information you entered in the budget worksheet).
 | rows 87–98 | > Enter supplies and materials expenses (refer to the information you entered in the budget worksheet).
 | rows 101–109 | > Enter other operating costs (refer to the information you entered in the budget worksheet).
 | rows 112–117 | > Enter debt expenses (refer to the information you entered in the budget worksheet).
 | If there are any inconsistencies between the body of the application and the budget, neither the application nor the budget will be accepted, per 19 TAC §100.1015 (4)(A).
5. | Report and Application
 | rows      8–25 | > After you have completed entering information, note that the amounts in the Summary of Net Assets and Expenses report at the beginning of the template have been automatically calculated. Double-check the amounts to ensure that they correspond to those in the application and the rest of the budget template.
 |  | > Print out the Summary of Net Assets and Expenses report to include with the application submission.