2018 Financial Analysis Review Released
DC public charter schools’ audited FY 2018 aggregated financial results continue to show strong results, as reflected by the 6 key financial indicators below. Fifty-three schools, or 80% of the total LEAs in the sector, meet or exceed all of these standards.
Across all public charter schools, assets grew by over $55 million, while liabilities only grew by approximately $16 million, for a net increase to total sector reserves in the current fiscal year. Total net assets grew by approximately $39M, compared to $33M in FY 2017, indicating the charter sectors’ financial strength has improved compared to the prior year.
As enrollment continued to increase by 6.7% in FY18, revenues grew by 12%, to $976M. This is largely the result of a $95 million increases in DC Uniform Per Student Funding Formula (UPSFF) funding and $9 million in total grants and other contributions received in FY18.
Total functional expenses grew by $84 million, or 10%, compared to FY 2017. Over $58 million (70%) of that growth is the result of increased spending on personnel and other direct students costs. Personnel expenses comprised roughly 61% of DC public charter schools’ expenses, consistent with previous years; however, personnel expenses range from 28% to 80% of expenses across LEAs. In cases where the school uses a school management organization (SMO), the proportion of expenses spent on personnel is impacted by the level of staffing support provided by the SMO.
In FY2018, schools received $3,193 per student in local facilities funding, for a total of $141M, or approximately 17% of their total UPSFF funding. Total occupancy costs for the year were $162M, for a net deficit of $21M between facilities funding and total occupancy costs. While the sector’s average occupancy cost are approximately 17% of total expenditures, occupancy costs range up to 31% of total revenues for some schools. The percent of expenses spent on occupancy is often higher as schools ramp up their enrollment levels.
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