Christian Schools of Florida
Accreditation Standards  

6000.4: FISCAL MANAGEMENT AND ACCOUNTABILITY


4.1 The school’s financial resources must be sufficient to sustain an education program consistent with the school’s philosophy and objectives.
4.2

The school’s finances must be well-managed and documented annually by a licensed CPA using one of the following:

  1. A financial report
  2. A financial review
  3. A compilation report
  4. A certified audit

In the year of accreditation or re-accreditation, the financial documentation from the previous fiscal year must be presented to the accreditation team. CSF reserves the right to require a certified audit sealed by an outside licensed CPA, when appropriate.

4.3 The school must utilize an effective budgetary process and develop annual budgets that are realistic and adequate to manage the school’s finances.
4.4 The school must develop and publish an annual tuition and fee schedule appropriate to its operations and clientele and have an established refund policy that is communicated in written form and meets legal and ethical considerations. A written delinquent policy must also be published.
4.5 The school’s fund-raising and resource development activities must be documented and handled in a legal, ethical, and professional manner.
4.6 All schools must be covered by liability insurance.
 
4.6.1 Premises and vehicular liability insurance must provide a minimum amount of $l,000,000 coverage and, based on enrollment, a minimum amount of umbrella coverage as follows:
1-200 $2,000,000
201-500 $3,000,000
501-up 501 and up $5,000,000
4.6.2 Schools must provide sufficient property insurance to cover the value of the contents and structure(s). This coverage May be provided through a commercial policy or through self-insurance. Documentation of coverage is to be maintained, either through a commercial policy or an ongoing line item in the operating budget of the school.
4.6.3 It is required that member schools provide professional liability coverage for directors and officers in leadership.
4.7 The school’s compensation policies (including salary schedules and other benefits) must be available to and understood by the employees.
4.8 The school must participate in the Federal Social Security Program.
4.9 CSF considers the following situations to be violations relative to sound fiscal management.
 
4.9.1 current liabilities in excess of current assets;
4.9.2 lack of a definite plan for repayment of debt, including the payment of the principal, as well as the interest;
4.9.3 a debt in the amount which the school does not have the ability to repay;
4.9.4 a substantial portion of debt with provisions for a “balloon” repayment, or which is payable on demand to the lender;
4.9.5 any significant delinquent contracted debt that is owed to a staff member, officer or trustee of the school, as well as late payments of salaries to employees and/or payments to vendors;
4.9.6 three consecutive years of operation at a deficit (greater than 3% of budget) evidenced by the end of the year financial statements without a plan to reverse the trend or eliminate the deficit;
4.9.7 any significant downtrend in enrollment without justifiable reasons.

Policy number: 6000.4
Approved: April 2003
Amended: January 2005