The Business of Catholic Education 2014
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1 The Business of Catholic Education 2014 Convocation 2014 Napa, California Presented by: Diane Starkovich - Ph.D., Superintendent of Schools, Archdiocese of Atlanta Jim Owens - Executive Vice President, FACTS Management/NBS
2 What is school vitality? A school with vitality is one that is able to sustain its effectiveness as an educational institution through lasting improvement, adequate support and resources, capacity for long-term capability and a supportive environment for adaptation to changing situations. (Blankenstein, 2004) 2
3 Catholic Schools and Best Practices We hope to share with you financial best practices which have been implemented to improve the financial health of Atlanta Catholic Schools. School administrators must be able to quickly access the current financial status of a school to effectively manage the school and provide the best education possible to the students they serve. 3
4 Monitoring by the Diocesan Schools Office The importance of strategic planning and monitoring by the diocesan schools office is critical to helping to maintain the viability of catholic schools, especially those in urban areas. (DeFiore, Convey, & Schuttloffel, 2009) 4
5 Diocesan Oversight Standardized chart of account Standard budget template Budgets approved by the pastor (if a parish sponsored school), advisory council, and final approval by the CFO and Superintendent of Schools. Books closed within 30 days of the end of the month, financial statements provided to advisory council, finance department, and Office of Catholic Schools. 5
6 Tuition Policies Studies conducted by The Center for the Study of Church Management at Villanova University have documented the need for policy and best practices regarding diocesan and parish schools. (West and Zech, 2006) 6
7 Tuition Policies We require one tuition management company for all schools which offers on-line viewing by the Office of Catholic Schools. Tuition due dates are set by the schools; tuition 30 days in arrears parent receives an electronic reminder that tuition is past due; at 60 days in arrears parents are notified that students may not report to class unless account is brought current. 7
8 Financial Best Practices We have set tuition at 80-85% of the cost to educate; A yearly deposit to the school endowment is required; Common salary scales; Common benefits; Uniform human resources policies; School development program should generate a minimum 1% of operating revenue 8
9 Financial Best Practices Continued Capital reserves are planned 1% of total budget in high schools;.5% of total budget in grade schools; Uncollected tuition should be less than 5% of total tuition receivables in prior year s budget; Administrative costs should not exceed 12% of total budget expenses; Strategic plan must be current which includes mission effectiveness, finances, building/facilities, technology, marketing & recruitment and 3-year projections for expenses and income, including tuition. 9
10 One Tuition Management Company Families have students in more than one school; allows for consistent analysis of financial need and continuity in tuition collection. Standardization Real-time financial reporting occurs. Security issues and compliance concerns are minimized. Allows Office of Catholic Schools to access a dashboard with aggregate results across the system while still being able to review individual school tuition receivables. 10
11 Dashboard Review In addition to reviewing income statement and balance sheets monthly, the Office of Catholic Schools reviews an on-line dashboard accessible 24/7 Facilitates discussions with principal, business manager and finance committee of schools advisory boards. 11
12 Security & Compliance 12
13 Security & Compliance Meeting Parent Expectations SSAE 16 Audited (KPMG) PCI Compliant Red Flags Ready 13
14 Advantages of Tuition Management Company Partnership Tuition delinquency prevention; Reinforces tuition policy established across the Archdiocese; reminders; Second attempt of automatic deduction if payment missed. Notes in student accounts can be posted and principal retains some discretion in emergency situations. 14
15 Annual Viability Index Our schools complete an annual viability index which is scored and returned to the school. Principal completes with assistance of finance committee of the advisory council. Assists with early warnings and red flags that may effect long-term school sustainability. 15
16 Viability Index Schools are rated in the following areas: mission effectiveness and Catholic identity; academic quality; financial practices; enrollment management; and staffing ratios. Schools receive a score which indicates school viability as: outstanding, healthy, fragile, or viability questioned. Archdiocesan schools advisory council assists with interventions. 16
17 The Business of Catholic Education Summary School Vitality Best Financial Business Practices Standardized Policies and Procedures Partnership with Third Party Security & Compliance Importance of Annual Viability Index 17
18 Questions? Our contact information: Diane Starkovich, Ph.D., Superintendent of Schools, Archdiocese of Atlanta, Jim Owens, Executive VP, FACTS Management 18
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