FILE:  DCBC

Cf:  DCBA

 

DEFERRED REVENUES

 

 

The Superintendent shall distribute deferred local revenues to charter schools in any year that such revenues exist, according to the procedures provided for in this policy. “Deferred local revenues” means “the amount of local revenues specified in La. Rev. Stat. Ann. §17:3995(A)(1) for distribution to all charter schools under the school board's jurisdiction that vary from the total amount of local revenues distributed to all charter schools pursuant to La. Rev. Stat. Ann. §17:3995(A)(3) due to a collection of local revenues that is higher or lower than the amount distributed by the board.”  “Positive” deferred local revenues result when the amount of local revenues distributed by the school board is lower than the actual amount of local revenues collected.  When the amount of local revenues distributed by the school board is higher than the actual amount of local revenues collected, “negative” deferred revenues result.  The Superintendent will strive to project local revenues as accurately as possible in order to ensure that the school district allocates the maximum amount of collected local revenues to schools through the district-level funding computation’s monthly payments, as established in policy DCBA, District-Level Funding Allocation.

 

CALCULATING DEFERRED REVENUES

 

  1. The school district will calculate deferred revenue amounts for each school as soon as is practicable after:

     

    1. Completion of the school board’s annual audit for the prior fiscal year; and

       

    2. Official state October 1st and February 1st MFP enrollment counts are available for the current school year.

     

  2. The school district will calculate deferred revenue for all public schools receiving local revenue from Orleans Parish through the Minimum Foundation Program, including Type 2 charter schools.

    The school district will calculate deferred revenue for each student for which schools receive Orleans Parish local revenue through the MFP, as reported by the state according to official state MFP enrollment counts.  Beginning on July 1, 2022, the per-student deferred revenue calculation will be differentiated for Type 1, 3, 3B, and 5 charter schools located in Orleans Parish and any schools directly managed by the School Board, using categories and weights provided for in the district-level funding computation.

 

POSITIVE DEFERRED REVENUES

 

In a year in which deferred revenues are positive, the school district shall present the amount of deferred revenue to be distributed to each school at a School Board meeting prior to distribution of the amounts to schools.  Prior to presenting to the board, the school district shall provide each school with a detailed calculation of its individual deferred revenue allocation.

 

NEGATIVE DEFERRED REVENUES

 

In a year in which deferred revenues are negative, the School Board may carry forward the amount of any loss, to be recovered from deferred revenues in any future year in which deferred revenues are positive, prior to distribution of revenues to schools.

 

  1. In such years where the school district anticipates negative deferred revenues, the district will evaluate its ability to carry forward a partial or total amount of such loss.  The school district will present a plan to the School Board for approval, no later than June of the prior fiscal year in which deferred revenues are anticipated to be negative.  The plan shall detail whether, when, and how the school district will collect negative deferred revenues from schools or carry forward the loss and recoup it in one or more future years when deferred revenues are positive.  Prior to presentation of the plan for approval to the School Board, the school district shall provide the plan to all schools and provide an opportunity for feedback and revision of the plan based on that feedback.

     

  2. The school district will finalize amounts to be collected or carried forward according to the plan adopted by the School Board after completion of the school board’s annual audit for the prior fiscal year and official state October 1st and February 1st MFP enrollment counts are available for the current school year.

 

  1. Should it be necessary for School Board to change its plan based on the outcome of the school district’s annual audit, the Superintendent shall present a revised plan to the School Board for approval.  Prior to presenting the revised plan, the Superintendent shall provide the plan to all schools and provide an opportunity for feedback.

     

  2. In cases where the school district carries forward the loss and determines to recoup amounts from individual schools, the governing authority for each school shall sign an agreement detailing the terms of delayed collections no later than March 30th of the current school year.

     

  3. The Superintendent will provide a report to the school board on the anticipated financial impact for the school district and schools no later than the next regular School Board meeting after which amounts are finalized.

 

OTHER REPORTING

 

Each fiscal year, the School Board shall include the deferred revenue calculations and distributions in the School Board’s annual audit.

 

Adopted:  November 19, 2020

Revised:  February 17, 2022

 

 

Ref:    La. Rev. Stat. Ann. §§17:10.7.1, 17:3995

Board minutes, 11-19-20, 2-17-22

 

Orleans Parish School Board