School Policies
3000: Annual Budget and Cash Flow Management
Adopted 2023-10-26
Revised 2024-02-22
Education Code section 47604.33 requires charter schools to prepare a series of annual budget reports to be submitted to the chartering authority and the county superintendent of schools of the county in which their sponsoring district is located.
Cash flow management involves tracking actual and projected revenues, expenditures, and cash receipts and disbursements to ensure that sufficient cash is available to meet all financial needs when due and that sufficient available reserves are maintained as a contingency in the event of unforeseen financial setbacks.
In accordance with the Memorandum of Understanding (“MOU”) between Epic California Academy (“Epic California Academy”) and the San Juan Unified School District (SJUSD), Epic California Academy has agreed to provide the following budget reports to SJUSD and the Sacramento County Office of Education (SCOE) by the following dates:
- On or before June 25, a preliminary budget for the upcoming year.
- On or before July 1, LCAP Annual Update.
- On or before 45 days after the Governor signs the annual Budget Act, a revised budget (if necessary), including any reEpic California Academy in revenues and expenditures that have been made to its budget to reflect the funding made available by the Budget Act.
- On or before September 10, unaudited actual data for the full prior year.
- On or before December 10, a first interim financial report reflecting changes through October 31. This interim report shall include projections of year-end balances and projections for the next two (2) years thereafter.
- On or before December 15, the annual audit report for the prior year.
- On or before March 10, a second interim financial report reflecting changes through January 31. This interim report shall include projections of year-end balances and projections for the next two (2) years thereafter.
- On or before March 15, corrective action plans addressing any audit findings for the annual audit report that was due on December 15.
- All of these submissions shall be signed by the Chief Financial Officer (“CFO”)/Chief Operations Officer (“COO”) or Designee.
- Upon submission of these reports, an email shall be sent to the Superintendent/Executive Director or Designee and COO to confirm submission.
State-required financial reports shall be forwarded to SJUSD as soon as they are completed and no later than the dates of submission that are established by law.
Reporting Schedule: SJUSD and SCOE (July 1 thru June 30)
Budget Structure
- Epic California Academy’ annual budget includes a statement (income statement or operational statement) that shows projected revenues, expenditures, and changes in fund balance for the fiscal year beginning July 1 and ending June 30 of the following year. The budget is based upon these activities and includes notations of balance sheet activities such as asset acquisitions and debt repayment that affect Epic California Academy’ operations.
- All annual budgets, including initial and interim updates, shall include a Multi-Year Projection (MYP) for the current year and the following two fiscal years, as well as a corresponding monthly cash flow statement that shows year-to-date and projected revenues and expenditures as well as other transactions affecting cash, plus a beginning and ending cash balance, broken out monthly.
Annual Budget Development and Monitoring Calendar
- In accordance with the MOU between Epic California Academy and SJUSD, Epic California Academy will forward the annual budget development and monitoring calendar (e.g. as outlined below) to SJUSD by December 1 of each year.
- During the months of March through May of each year, Epic California Academy will begin preparing the draft preliminary budget under the direction and supervision of the Superintendent/Executive Director or Designee, using all available data, including monthly actual revenues and expenditures to date as well as planned adjustments for the coming year.
- Prior to June 1 of each year, the Board will hold a “Public Hearing” specifically for budget review and discussion, in which the preliminary budget, prepared by the Superintendent/Executive Director or Designee in conjunction with the CFO/COO, is presented to the Board and each area of the budget may be discussed in depth by staff and Board members.
- Alternatively, a Finance Committee may hold a separate Budget Planning meeting in place of a meeting of the entire Board. In the case of a separate Finance Committee meeting, the results of this meeting will be presented to the Board at their next regular or special Board meeting.
- The Superintendent/Executive Director or Designee (with the assistance of the CFO/COO) will then revise and adjust the preliminary budget as directed by the Board and/or the Committee to create the final preliminary Budget for the coming fiscal year. Additional Budget Planning meetings may be scheduled if necessary to discuss any further reEpic California Academy prior to finalizing the preliminary budget.
- Prior to July 1 of each year, the final preliminary budget will be presented to the Board for final approval. Once approved, the adopted budget will be submitted to SJUSD and SCOE by July 1 as required under the Education Code.
Interim Reports
- Epic California Academy’ First and Second interim reports (budget to actuals) will be presented to the Board at a regular or special Board meeting, where the Board will be asked to approve/ratify the reports.
- The interim reports may include interim budgets reflecting adjustments or reEpic California Academy to the original budget made in response to changing financial conditions or needs of Epic California Academy. Any revised interim budgets will be Board approved. The Board may elect to hold one or more Budget Planning meetings, or a Finance Committee may hold Budget Planning meetings, if deemed necessary, prior to approval of an interim revised budget.
Unaudited Actual Report
- On or before September 10, the Superintendent/Executive Director or Designee will develop the unaudited actual report for the previous year. The unaudited report will be presented to the Board at a regular or special Board meeting. This report represents the finalization of the prior year’s annual budget. This report will be submitted to SJUSD and SCOE on or before September 10, as required by the MOU.
Periodic Fiscal Updates and Budget Updates
- In accordance with the MOU between Epic California Academy and SJUSD, the CFO/COO or Designee will provide the Board with an update of year-to-date revenues and expenditures, including a comparison of budgeted vs. actual amounts and a brief explanation of significant deviations from the original budget. The CFO/COO or Designee will also present a cash flow report that projects cash flow through the end of the fiscal year, as well as a balance sheet. The Board is not required to approve these updates, which are informational items only – however, the Board may elect to approve any additions, reEpic California Academy, or modifications to the budget that it deems necessary under a separate agenda item at the same or a subsequent meeting. Any such Board-approved changes to the budget will be used as the current operating budget by school staff from that point forward.
Recommended Reporting Schedule to the Board (July 1 thru June 30)
Financial Statements
The CFO/COO is responsible for maintaining current financial statements. The accounting policies of the Charter conform to accounting principles generally accepted in the United States of America as prescribed by the Governmental Accounting Standards Board and the American Institute of Certified Public Accountants. Annually, the CFO/COO, Superintendent/Executive Director or Designee, and the Board shall review the government-wide (organization-wide) financial statements (e.g. when the Board reviews the annual audit).
Government-wide (i.e. organization-wide) Financial Statements
The statement of net position and the statement of activities display information about Epic California Academy. These statements include the financial activities of the overall government. The government-wide statement of net position presents information on all of Epic California Academy’ assets and liabilities, with the difference between the two presented as net position. Net position is reported as one of three categories: invested in capital assets, net of related debt, restricted or unrestricted. A restricted net position is further classified as either net position restricted by enabling legislation or net position that is otherwise restricted.
The government-wide financial statements are reported using the economic resources measurement focus and the modified accrual basis of accounting. Revenues are recorded when earned, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements are met. Expenses are recorded when liabilities are incurred.
The government-wide statement of activities presents a comparison between direct expenses and program revenues for each function or program of Epic California Academy’ governmental activities. Direct expenses are those that are specifically associated with a service, program, or department and are, therefore, clearly identifiable to a particular function. Epic California Academy does not allocate indirect expenses to functions in the statement of activities. Program revenues include charges paid by the recipients of goods or services offered by a program, as well as grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues, which are not classified as program revenues, are presented as general revenues of Epic California Academy, with certain exceptions. The comparison of direct expenses with program revenues identifies the extent to which each governmental function is self-financing or draws from the general revenues of Epic California Academy.
Epic California Academy reports all direct expenses by function in the Statement of Activities. Direct expenses are those that are clearly identifiable with a function. Depreciation expense is specifically identified by function and is included in the direct expense function. Interest on long-term liabilities is considered an indirect expense and is reported separately in the Statement of Activities.
Governmental Fund Financial Statements
Governmental Fund financial statements report detailed information about Epic California Academy. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major governmental fund is presented in a separate column, and all non-major funds are aggregated into one column.
Governmental fund financial statements (i.e., balance sheet and statement of revenues, expenditures, and changes in fund balances) are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded under the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the fiscal year in which the resources are measurable and become available. “Available” means the resources will be collected within the current fiscal year or are expected to be collected soon enough thereafter to be used to pay liabilities of the current fiscal year. For Epic California Academy, “available” means collectible within the current period or within 60 days after year-end.
Non-exchange transactions, in which Epic California Academy receives value without directly giving equal value in return, include property taxes, grants, and entitlements. Under the accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and entitlements is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are to be used or the fiscal year when use is first permitted; matching requirements, in which Epic California Academy must provide local resources to be used for a specified purpose; and expenditure requirements, in which the resources are provided to Epic California Academy on a reimbursement basis. Under the modified accrual basis, revenue from non-exchange transactions must also be available before it can be recognized.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
The accounts of Epic California Academy are organized on the basis of funds or account groups, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Charter resources are allocated to and accounted for in individual funds based on the purpose for which they are to be spent and the means by which spending activities are controlled. Epic California Academy’ funds and account groups are as follows:
Governmental Funds:
The General Fund is the general operating fund of Epic California Academy. It is used to account for all transactions except those required or permitted by law to be accounted for in another fund.
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes.
Capital Projects Funds are used to account for the acquisition and/or construction of all major governmental general fixed assets.
3010: Fund Balance & Cash Reserves
Adopted 2023-10-26
Revised 2024-01-25
Pursuant to the Memorandum of Understanding (“MOU”) between Epic California Academy (“Epic California Academy”) and the San Juan Unified School District (SJUSD), Epic California Academy maintains a minimum of three percent (3%) of the school’s total budgeted expenditures as a reserve account for economic uncertainty at the end of each fiscal year.
This policy describes several reserve fund types that may be maintained by Epic California Academy to minimize adverse annual and multi-year budgetary impacts from anticipated and unanticipated expenses. The adequacy of the reserves’ target year-end balance ranges and/or annual contributions will be reviewed annually during the budgeting process and may be revised accordingly as necessary. The following reserve fund types may be maintained by Epic California Academy for planning purposes:
- Restricted Reserves
- Those amounts are required to be held in reserves by applicable proEpic California Academy of law for certain expenditures (i.e. reserves required by special grant funds)
- Unrestricted Reserves
- Operating Reserves for Economic Uncertainty: Target operating reserve is 4 months “average” monthly expenditures (based upon prior fiscal year)
- Assigned Reserves: For planning purposes, the Superintendent/Executive Director or Designee may work with the Chief Financial Officer (“CFO”)/Chief Operations Officer (“COO”) or Designee and the Board of Directors (“Board”) to determine additional assigned reserves that should be set aside based upon organizational goals and objectives (e.g., Technology Replacement Reserves, PERS/STRS Increase Reserves, etc.)
- The remainder of Epic California Academy’ unrestricted reserves not included in the Operating Reserves for Economic Uncertainty or Assigned Reserves shall be considered Epic California Academy’ Unappropriated Fund Balance.
- Unless specifically restricted by the Board, all Unrestricted Reserves may be accessed and utilized by Epic California Academy at any time and as needed for an appropriate public school purpose of Epic California Academy as determined by the Epic California Academy Board. This includes funds in Operating Reserves for Economic Uncertainty or Assigned Reserves, even if those funds were set aside and/or maintained for a particular purpose for planning purposes.
3020: Revenue and Accounts Receivable
Adopted 2023-10-26
Revised 2024-01-25
Epic California Academy (“Epic California Academy”) will record all revenue on the modified accrual basis of accounting, consistent with generally accepted accounting principles, meaning that revenue is recorded when earned without regard to when payment is issued or received.
Cash Receipts
Epic California Academy will deposit all funds received as soon as practical upon receipt. All cash and checks must be deposited within thirty (30) days (except for periods when Epic California Academy’ offices are closed for extended periods). Epic California Academy may use electronic fund transfers to accelerate deposits. Cash and checks received may not be retained outside of the Epic California Academy’ bank accounts to hold for future projects.
Any checks received by Epic California Academy will be restrictively endorsed immediately upon receipt (e.g. “For Deposit Only – Epic California Academy”).
Epic California Academy’ Director of Fiscal Services, or Designee other than the person responsible for deposits, will log all cash or checks received by Epic California Academy in the Cash Receipts Book and sign their name. The Cash Receipts Book will be kept in a secure location that is separate from the cash and checks.
Cash and checks received by Epic California Academy are kept in a secure, locked location (e.g., a safe) until deposit. The Director of Fiscal Services, or Designee other than the person responsible for logging checks or cash payments received, is responsible for making bank deposits within 30 days of receipt.
Epic California Academy’ Fiscal Services Department will reconcile the Cash Receipts Book to the deposit slips and bank statements as part of the monthly reconciliation process and will maintain the general ledger records of all cash receipts received by Epic California Academy.
Petty Cash
A petty cash fund shall be maintained in the Fiscal Services Department of Epic California Academy having a balance-on-hand maximum of $500.00.
Epic California Academy will maintain a petty cash fund ledger separate from the general ledger, which will be reconciled monthly by the Chief Financial Officer/Chief Operations Officer (CFO/COO) or Designee, Director of Fiscal Services or Designee who is not authorized to expend petty cash.
- Petty cash is secured such as by way of a locked box located in a fireproof safe inside the Fiscal Services Manager’s office. Access will be restricted, requiring two parties to be present when petty cash is accessed. Petty cash may be advanced by the Director of Fiscal Services or Designee to Epic California Academy staff upon their request and the execution of a receipt for the same for the purpose of procuring item(s) or service(s) appropriately relating to Epic California Academy business. After the said item(s) or service(s) have been obtained and on the same day, a receipt for the same shall be submitted to the Director of Fiscal Services or Designee, and any remaining advanced funds shall be returned. The maximum petty cash advance shall be $25.00. All disbursements must be approved by the Director of Fiscal Services or Designee.
- Whenever employees or the Board of Directors of Epic California Academy incur “out-of-pocket” expenses under $25 for an item(s) or service(s) appropriately relating to valid Epic California Academy expenditures, the employee or board member shall complete an appropriate reimbursement form provided by the Accounting office and shall include valid receipts. Upon approval of the form by the Director of Fiscal Services or Designee, said expended amount may be reimbursed from Epic California Academy’ petty cash fund.
- No personal checks or checks of any kind shall ever be cashed in the petty cash fund.
- The petty cash fund shall only be replenished by a check from the General Fund Account and shall be recorded in the appropriate expense accounts and the petty cash ledger.
- The petty cash fund may be reviewed for internal controls as part of the annual audit.
3030: Purchasing and Procurement
Adopted 2023-10-26
Adopted 2023-10-26
Objectives
The Board of Directors (“Board”) is committed to safeguarding the Epic California Academy’ funds and promoting transparency and accountability when it comes to the use of its funds. The objective of this policy is to ensure that Epic California Academy (“Epic California Academy”) receives high-quality and cost-effective equipment, materials, supplies, and services in an efficient manner from reputable vendors. Although cost is an important factor, Epic California Academy is not required to select the vendor with the lowest price.
When approving contracts and purchases, Epic California Academy must:
- Determine if the expenditure is budgeted.
- Determine if funds are available for the expenditure.
- Determine if the expenditure is allowable under the appropriate revenue source.
- Determine if the expenditure is appropriate and consistent with the School’s vision, approved charter, policies and procedures, and any related laws or applicable regulations.
- Determine if the price is reasonable and prudent.
- Comply with all applicable laws, including, but not limited to, any laws prohibiting conflicts of interest.
This policy does not apply to enrichment and extracurricular vendors selected by families, which adhere to Epic California Academy’ separate vendor processes and are processed through Epic California Academy’ proprietary ordering systems.
Request Processes
The following procedures will be followed for all contracts for the purchase of goods or services.
- Request for Purchase of Goods
- To request equipment, materials, or supplies of any amount, the purchasing process begins with a requisition for goods by an individual or department within the Epic California Academy, submitted online through Launchpad Student Support System LPAD SSS or in writing via a purchase requisition submitted to the Fiscal Services Department.
- Requests should include the following, as appropriate:
- Description of equipment, materials, supplies, or services needed, including quantity if applicable;
- Date equipment, materials, supplies, or services are needed;
- Requesting department name and budget account number;
- Any special shipping or receiving requirements;
- For textbooks, full ISBNs;
- Vendor name;
- Drawings or specifications that can help further document the purchase; and
- Any additional relevant information.
- Request for Purchase of Services
- To request services of any kind or amount, the purchasing process begins with a requisition for services by an individual or department within Epic California Academy, submitted in writing via a purchase requisition or service agreement to the Fiscal Services Department.
- Requests should include the following, as appropriate:
- A description of the service to be performed;
- Requirements for personnel qualifications and/or licenses, if known;
- Any additional relevant information.
Approval Thresholds
Except as otherwise provided herein, the following officials have the authority to approve contracts and purchases at the listed threshold amounts during the course of a fiscal year, provided funds are authorized and available within Epic California Academy’ adopted budget:
How contract/purchase amount is determined: For one-time purchases, the total dollar amount is the total purchase amount, including all taxes, shipping charges, and other costs.
For purchases and contracts with a fixed price in excess of $150,000 and which span more than a single fiscal year, Board approval in the initial year would be required but not the subsequent year. See example scenario below:
- For a construction contract of $160,000 related to work that will commence in March of one year, and be completed in the following August of the new fiscal year, while this contract spans multiple fiscal years, Board approval would only be required when the contract is initially approved in March.
For multi-year contracts, only those contracts that are $150,000 or higher for an individual fiscal year are required to be approved by the Board. See example scenarios for several multi-year contracts below:
- Year One: $60,000, Year Two, $20,000, Year 3: $75,000, board approval NOT required.
- Year One: $160,000, Year Two: $40,000, Year 3: $20,000, Board approval IS required in Year One but not in Years Two and Three.
- Year One:$175,000 Year Two: $140,000 Year 3: $250,000, Board approval IS required in the initial year AND in the third year (when establishing the new year’s purchase order (> $150k)), but not in the second year, when the contract amount is less than $150,000
For contracts where the total amount to be paid cannot be determined at the time the contract is entered into (e.g. contracts for certain ongoing services at hourly rates or as-needed), the applicable procedure depends on, in the judgment of the Chief Operating Officer, how much Epic California Academy reasonably expects to pay under the contract each year. When multiple one-time purchases are made from the same purchase order/contract with supplier and/or vendor over time, it is within the discretion of the Chief Operating Officer whether to aggregate such purchases (change order increases to the original purchase/contract), taking into account the objectives of this procurement policy. Epic California Academy will not engage in any contracting or purchasing activities intended to circumvent the procedures of this policy.
Once a contract is approved, the contract may be executed by an authorized signer or other person specifically designated by the Board at the time the contract was approved.
Notwithstanding the approval threshold, any purchase, sale, lease, or transfer of real property on behalf of Epic California Academy, regardless of the amount, must be approved by the Board and will be evidenced by a written agreement identifying all the material terms and conditions of the transaction.
Notwithstanding the approval thresholds herein, Board approval is not required for:
- Contracts or purchases in an “emergency” situation. “Emergency” is defined as work stoppage, threat of financial loss, or other situations that impair the health, welfare, and safety of students, staff, or Epic California Academy property. These contracts/purchases must be accompanied by a memo noting the urgency of the contract/purchase and the justification, must be approved by the Superintendent/Executive Director, or Designee, and must be reported to the Board.
- Contracts subject to privilege.
- Contracts for special education services provided directly to students.
- Contracts for student curriculum purchases.
- Contracts for student enrichment/voucher purchases.
Employment contracts.
Bidding/Estimates
Bids or estimates (informal and/or formal quotes) will be obtained by Epic California Academy in accordance with the following procedures:
Bids or estimates may also be obtained, or a formal request for proposal (RFP) process for soliciting goods or services may be used, where required by law or otherwise deemed by the Board and/or Superintendent/Executive Director or Designee to be appropriate and in the best interests of Epic California Academy.
Epic California Academy shall not be required to solicit formal written quotes or proceed through a formal bidding process in the following circumstances:
- The requested product is an integral repair part or accessory compatible with existing equipment.
- The requested product is essential in maintaining continuity or to remain in compliance with established standards.
- Only a particular brand or “make” is compatible with existing equipment or inventory.
- Only one source is known for a specialized item of equipment or material.
- Only one contractor is capable of providing the required service.
- The product is included in cooperative public purchasing contracts, multiple award schedules, and other approved California State Contracts.
Examples are:
-
- California Multiple Award Schedules (CMAS)
- NASPO ValuePoint
- WSCA
- Calsave
- SPURR
- PEPPM
- GSA Schedule #70
- US Communities
- Cal eProcure (DGS)
- BuyQ
Selection Process
When selecting contractors and making purchasing decisions, Epic California Academy officials who have the authority to approve contracts and purchases at the listed threshold amounts shall apply the objectives in this policy to their decision-making. Pricing should be competitive, but price is not the only factor. Epic California Academy’ objective is to obtain quality, high-value supplies and services in the best interests of Epic California Academy.
Procurement Cards
Epic California Academy currently utilizes procurement cards to enable the appropriate staff to make budgeted expenditures through approved merchants. Procurement card expenditures are recorded in real-time, and approvals are made by appropriate department leaders prior to payment. No charges may be made for non-business expenses under any circumstances. Any procurement card must bear the name of both Epic California Academy and the staff member who conducted the transaction.
Staff must ensure adequate funding exists within the accounts to be charged prior to conducting the transaction. If adequate funding does not exist and the staff member still conducts the transaction, the staff member may be required to personally fund the purchase him/herself.
Copies of itemized receipts for all transactions must be retained. The procurement card statement is not an acceptable substitute for individual receipts. Perceived abuse of this policy as determined at the discretion of the Superintendent/Executive Director or Designee may result in loss of the procurement card and disciplinary action. This section on procurement cards does not apply to travel expenses, which are covered by Epic California Academy’ Reimbursements for Purchases and Travel policy.
Invoicing Processing
For procedures on invoice processing, please see the Accounts Payable Policy.
Contracts and Agreements
All contracts or agreements, including those for ongoing services, shall be negotiated to obtain such services in the most efficient and cost-effective manner and in the best interests of Epic California Academy, consistent with the objectives in this policy. All such agreements must clearly define the scope of services to be performed and the price for such services.
Vendor Files
A file shall be created and maintained for each vendor used by Epic California Academy for significant or ongoing purchasing. The vendor files should include all relevant items related to that vendor. Documents in the vendor files shall be retained pursuant to Epic California Academy’ Record Retention Policy.
Receipt of Ordered Goods Procedure
With the exception of student purchases and limited consumable staff office supplies, all ordered goods should be shipped to the Epic California Academy’ main address unless explicit instruction is provided by the Superintendent/Executive Director or Designee that an alternate address should be used. If goods are expected to be received during periods when Epic California Academy is closed, a staff member shall be directed to contact the appropriate shipping provider and instruct them to re-deliver the goods when Epic California Academy is again open. Staff members shall not receive ordered goods during Epic California Academy closures unless arrangements are approved by the Superintendent/Executive Director or Designee. Upon receipt, the goods should be immediately reviewed for accuracy. Any problems must be immediately reported to the Fiscal Services Department for review and intervention.
3040: Reimbursements and Employee Travel
Adopted 2023-10-26
Revised 2024-01-25
Epic California Academy (“Epic California Academy”) hereby adopts the following procedures governing reimbursements for purchases and travel. This policy applies to employees and board members alike.
Reimbursements
Reimbursements shall be made only for reasonable and necessary Epic California Academy expenses actually incurred. Purchases are subject to the approval process set forth in the Epic California Academy’ Board Policy 3030: Purchasing and Procurement. Department Managers are responsible for reviewing and approving all reimbursements pertaining to their department, up to $1,000. The Chief Operations Officer (“COO”) or Chief Academic Officer (“CAO”) is responsible for approving all reimbursements for more than $1,000 and up to $5,000. The Superintendent/Executive Director or Designee is responsible for approving all reimbursements of more than $5,000.
Reimbursement requests shall contain an itemized receipt, invoice and/or record of sale, and documentation of the prior approval (as appropriate). Reimbursement requests shall be submitted to the Fiscal Services Department as soon as possible after incurring the expense. Employees and directors seeking reimbursements must submit itemized receipts that only reflect School-related purchases and do not include any unrelated personal purchases.
Purchases not eligible for reimbursement include, but are not necessarily limited to:
- Donations
- Gifts
- Alcoholic beverages
The use of School funds for personal use is prohibited, including the submission of any non-School-related purchases for reimbursement. Individuals who use or attempt to use School funds or seek reimbursement for non-school-related purposes may be subject to disciplinary action. No individual may request reimbursement for expenses on behalf of another individual.
In the event an employee or director seeks reimbursement for a purchase without following these procedures, Epic California Academy may refuse the services and deny payment or return the supplies to the vendor and deny payment, and the purchasing party may be held personally and financially liable for payment of the supplies or services.
Travel
Epic California Academy recognizes that employees and directors may be required to travel for School business purposes from time to time. The purpose of this policy is to ensure that (a) adequate cost controls are in place, (b) travel and related expenditures are appropriate, and (c) to provide a uniform and consistent approach for the timely reimbursement of authorized expenses incurred by employees and directors. Our policy is to reimburse only reasonable and necessary expenses actually incurred for the benefit of Epic California Academy.
When incurring business expenses, Epic California Academy expects employees and directors to:
- Exercise discretion and good judgment with respect to those expenses.
- Be cost-conscious and spend money carefully and judiciously.
- Report expenses, supported by required documentation, as they were actually spent.
Initial Approval for Travel Costs
Written approval (which may be in the form of an email) must be given by the Superintendent/Executive Director or Designee prior to travel costs being incurred. A copy of the written approval should be provided along with the Expense Report at the time reimbursement is requested (see below). The travel approval should contain a brief description of the travel being approved, including dates, destination, and purpose for the trip. Repeat trips may be approved in a single approval (e.g., approving a weekly trip).
Cost caps for various travel costs are provided for in this policy. For reimbursement to be provided in excess of these cost caps, explicit pre-approval to exceed caps must be included in the approval document provided by the Superintendent/Executive Director or Designee. Without prior written explicit approval, no reimbursement for costs in excess of the cost caps will be provided after the fact.
Expense Report for Travel Costs
Expenses will not be reimbursed unless the individual requesting reimbursement submits a written Expense Report. The Expense Report shall be submitted to the Fiscal Services Department as soon as possible after the completion of travel. The Expense Report must include:
- The individual’s name
- The date, destination, and purpose of the trip (should match the information on the approval document)
- Itemized receipts listing all expenses for which reimbursement is requested
- If seeking mileage reimbursement, the origin and destination of each trip, total miles driven, and the business purpose of each trip (see “Personal Cars” section below)
- If item cost exceeds the cap, explicit authorization on the approval document to exceed caps.
Receipts for Travel Costs
Itemized receipts are required for all expenditures, whether billed directly to Epic California Academy, paid with a school procurement card, or paid by the individual for later reimbursement. No expense will be reimbursed unless the individual requesting reimbursement submits with the Expense Report all original itemized receipts for each expenditure showing the vendor’s name, a description of the goods or services provided, the date, and the itemized and total expenses, including tips (if applicable). A procurement card or bank statement print-out showing only the total purchase cost and date is insufficient, except in the case of receipts such as parking garages, tolls, or other single charges that do not provide itemized receipts.
Organization Procurement Cards
If a corporate procurement card is issued for travel or other organization-related expenses, copies of all itemized receipts must be submitted to the Fiscal Services Department for audit purposes, although an Expense Report need not be filed if no reimbursement is requested. The monthly procurement card statement is not an acceptable substitute for individual receipts. No charges may be made for non-business expenses under any circumstances. Failure to meet these requirements may result in loss of the procurement card and disciplinary action.
Necessity of Travel
In determining the reasonableness and necessity of travel expenses, the individual and Superintendent/Executive Director or Designee shall consider the ways in which Epic California Academy will benefit from the travel and weigh those benefits against the anticipated costs of the travel. Less expensive alternatives, such as participation by telephone or video conferencing or the availability of local programs or training opportunities, shall be considered. However, cost is not the sole consideration; a reasonable balance should be struck between cost and convenience, with the final goal being the best combination of cost and benefit in the interests of Epic California Academy.
Air Travel
Air travel reservations should be made as far in advance as possible in order to take advantage of reduced fares. Economy or Premium Economy should be selected in all cases unless explicit authorization, including reason, is provided for Business/First class. The individual may choose to upgrade school-paid fares to a higher class if additional charges are paid directly by the individual (upgrade charge cannot be on a school card or charged to Epic California Academy and later reimbursed). Airline lounge passes may not be paid for or reimbursed by Epic California Academy.
Lodging
Staff and board members traveling on behalf of Epic California Academy may be reimbursed for the reasonable cost of hotel accommodations when the event is at least 50 miles (as per CA Dept of Human Resources travel policy) from the individual’s residence and regular work site. Convenience, the cost of staying in the city in which the hotel is located, safety, and proximity to other venues on the individual’s itinerary for Epic California Academy travel shall be considered in determining reasonableness. Hotel rates will be negotiated at the lowest level possible, including the corporate, nonprofit, or government rate if offered, and the lowest rate available at the time of booking. Individuals may choose to upgrade school-paid room charges, add incidental charges, or otherwise increase the cost of stay only if paid directly by the individual (upgrade charge cannot be on a school card or charged to Epic California Academy and later reimbursed). Charging questionable incidentals may lead to revocation of any future hotel incidental charges and/or discipline of the employee.
Out-Of-Town Meals & Incidental Expenses
Staff and employees traveling on behalf of Epic California Academy are reimbursed on a per-meal basis not to exceed the following rates (tied to current General Services Administration per diem rates) when they actually incur the cost of a meal. They will not be reimbursed for meals paid for or provided by others.
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Meal costs in excess of the above will not be reimbursed unless explicitly pre-authorized in advance. If traveling to an expensive city or area, Staff are advised to seek pre-approval of higher caps when obtaining overall trip approval. Epic California Academy shall not reimburse for any alcohol purchases.
Ground Transportation
Individuals are expected to use the most economical ground transportation appropriate under the circumstances and should generally use the following, in this order of desirability:
Courtesy Shuttles. Many hotels have courtesy shuttles, which will take you to and from the airport at no charge. Individuals should take advantage of this free service whenever possible.
On-Demand Car Services or Taxis. When courtesy cars and airport shuttles are not available, an On-Demand Car Service (e.g. Uber or Lyft) or taxi is often the next most economical and convenient form of transportation when the trip is for a limited time and minimal mileage is involved.
Rental Cars. Individuals may rent a car while out of town, provided that the total cost is estimated to be less than the total cost of alternative methods of transportation. Gas charges to refill the car are reimbursable.
Carpools are strongly encouraged when two or more individuals need to travel to the same destination and would otherwise do so in separate privately owned vehicles unless other circumstances make such pooling impractical and/or more costly.
Individuals who use private rental vehicles in the course of their official duties are required to have in their possession a valid driver’s license and carry current automobile insurance with at least the minimum coverage for public liability and property damage as specified by the State. Any traffic violation shall be the responsibility of the individual.
Personal Cars
Individuals are compensated for the use of their personal cars when used for business travel. When individuals use their personal car for such travel, including travel to and from the airport, mileage will be allowed at the standard mileage rate per mile as determined by the Internal Revenue Service. All individuals requesting such mileage reimbursement are required to identify in the Expense Report the origin and destination of each trip, the total miles driven, and the business purpose of each trip. Unless there is a valid reason for taking an alternative route, individuals are expected to take the shortest route to the destination.
Exception: You will not be reimbursed for mileage to go to or from your assigned work site (i.e., commuting to work).
Parking/Tolls
Parking and toll expenses, including charges for hotel parking, incurred by individuals traveling on organization business will be reimbursed. The costs of parking tickets, fines, car washes, etc., are the responsibility of the individual and will not be reimbursed. On-airport parking is permitted for short business trips. For extended trips, individuals should use off-airport facilities to the greatest extent practical to minimize costs. For toll roads and bridges, when a receipt is not practical, the individual should produce a copy of the invoice received from the toll road and/or bridge (if automated) or identify the amount and the toll road or bridge (if paid in cash) on the Expense Report.
Lavish/Excessive Expenditures
Epic California Academy discourages expenses in any category that could be perceived as lavish or excessive, as such expenses are inappropriate for reimbursement by a charter school. Some examples of excessive spending may include, but are not necessarily limited to:
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Limousine/town car service;
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Beach resort accommodation;
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Sporting/golf events;
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Music events/festivals/concerts;
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Luxury hotels (unless clear reasons can be shown as to why other options were unavailable);
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Alcohol
Out-of-state travel
This type of expense should have prior approval from the Board for the Superintendent/Executive Director or Designee, however, the Board’s Designee, the Superintendent/Executive Director or Designee may approve all other travel requests.
Lost Receipts
In the rare instance where a receipt cannot be located, it is required that a “Payment Affidavit” form be completed and submitted with the expense report or credit card supporting documentation. This form may be used for expenses not exceeding $75; proof of payment must also accompany the form, such as a bank or credit card statement as proof of payment. Inappropriate or excessive use of the “Payment Affidavit” form may result in disciplinary action and payment from personal funds may be the responsibility of the individual.
3050: Asset Management
Adopted 2023-10-26
Revised 2024-01-25
Fixed Assets
In order to provide adequate insurance coverage and ensure control and accountability, an inventory must be maintained for all non-consumable goods and equipment with a value of $5,000 or more. In addition, an inventory shall be established and maintained of all electronic and computer equipment.
Epic California Academy Inventory Record shall include the asset description, original purchase price and date, location, and ID tag/serial number, and for applicable items exceeding $5,000, shall reference the corresponding entry in the Fixed Asset Register for capitalized assets (see below). All inventoried items shall be tagged with a unique identification tag.
Fixed Asset Register
Assets with a single value of $5,000 or more (or a collection of items such as a computer lab or set of similar furniture that has a system value of over $5,000) and a useful life of more than one year are considered “fixed assets,” meaning they are included as assets on Epic California Academy’ balance sheet (rather than as expenses such as books and supplies) and the cost of these assets is spread out over the useful life of the asset. This process is called “capitalization” and involves including the value of the asset on Epic California Academy’ balance sheet at acquisition and charging a portion of the item’s value as “depreciation” each year over its useful life. In order to properly account for capitalized assets, a Fixed Asset Register must be maintained for all capitalized assets and shall include asset description, acquisition date, cost basis, depreciation expense, accumulated depreciation, and useful life. The Chief Financial Officer (“CFO”)/Chief Operations Officer (“COO”) or Designee is responsible for maintaining the fixed asset register.
Accounting for Sold or Disposed Fixed Assets
Sold/obsolete fixed assets should be accounted for. When an item is sold or otherwise disposed of, the responsible person for that asset must notify the accounting department and provide the following information: date sold or disposed of, amount received from sale, ID tag/serial number for the item that is sold or obsolete. This information is necessary for the accounting department to reconcile the item in the general ledger system and to remove it from the fixed asset records. Depending on the total value of the item, the Superintendent/Executive Director or Designee may report items for sale or disposal to the Board of Directors (“Board”), e.g. by way of Board Consent.
Annual Inventory
At the end of each fiscal year, upon a date determined by the Superintendent/Executive Director or Designee, a comprehensive physical inventory shall be conducted of all inventoried assets of $5,000 or more (including all fixed assets), reconciling the Inventory Record, the Fixed Asset Register, and the information in the general ledger to match the results of the physical inventory.
3060: Accounts Payable
Adopted 2023-10-26
Revised 2024-01-25
All incoming invoices received by the Fiscal Services Department are date-stamped upon receipt.
For Operational/Administrative invoices:
- Purchases of tangible goods and services from vendors require approval and may require a contract as set forth in Board Policy 3030: Purchasing and Procurement.
- When receiving tangible goods from a vendor, Epic California Academy (“Epic California Academy”), staff will trace the merchandise to a receiving document and note any items that were not in the shipment.
- The Department Manager will annotate on the invoice the correct Purchase Order to charge the invoice against.
- Invoices are approved by the Department Manager for payment of goods and services. Prior to approval of invoices, Epic California Academy staff will review the invoice for accuracy and ensure sufficient supporting documentation is included as appropriate.
For Student-Related Invoices:
- Epic California Academy operates a separate system of audits and approvals for student-related ordering and invoices (i.e., purchases for student curriculum and enrichment/extracurricular services).
- All initial orders are approved by the Teacher/Principal in writing, such as from our LPAD system or related systems/processes.
- Approved orders are routed through the Ordering Services Department for final review and approval before the order is processed by the Ordering Services Department.
- Invoices are approved by Fiscal Services staff for payment of goods and services. Prior to approval of invoices, Epic California Academy staff, vendors, and/or parents/guardians may verify the invoice for accuracy from within the LPAD system as appropriate.
- A/P batches are then audited by the Sacramento County Office of Education (“SCOE”) before payments are released.
As appropriate, Epic California Academy will obtain a W-9 from a vendor prior to submitting any requests for payment.
Certain vendor invoices, such as for building utilities or retirement and health benefit premiums, may be auto-debited from Epic California Academy’ accounts monthly and are reviewed as part of Epic California Academy’ monthly reconciliation process. Any discrepancies will be reported to the Chief Financial Officer (“CFO”)/Chief Operations Officer (“COO”) and/or Superintendent/Executive Director or Designee as appropriate.
Epic California Academy endeavors to pay undisputed invoices within 30 days from the date the invoice is received (net 30) unless payment terms provide for a longer payment schedule. If there are questions or disputes regarding invoices, Epic California Academy will not issue payment of the disputed amount until full resolution of the disputed amount.
3070: Banking and Reconciliation
Adopted 2023-10-26
Revised 2024-01-25
The Board of Directors (“Board”), by resolution, shall designate a depository or depositories for custody of Epic California Academy’s (Epic California Academy’) funds so that Epic California Academy’ funds are managed and held in a manner that provides a high degree of protection of Epic California Academy’ assets. All bank accounts shall be established in Epic California Academy’ name at an accredited institution with prior Board approval of the initial authorized signers. Epic California Academy may maintain an account in the County Treasury pursuant to a memorandum of understanding between Epic California Academy and the Sacramento County Office of Education (SCOE). As necessary, the Board shall review and approve all authorized signers, may open new accounts as warranted, and may close accounts if there is not a continuing need for each account. Epic California Academy will provide SCOE a 90-day notice prior to drawing down Epic California Academy’ funds maintained in the County Treasury. Only individuals authorized by the Board may sign checks or transfer funds from any such depositories.
All private Epic California Academy funds, such as donations, will be deposited into a local bank account of Epic California Academy and not the County Treasury.
Reconciliations
All bank statements will be reconciled monthly by the CFO/COO or a designee who does not participate in cash handling.
On a monthly basis, Epic California Academy’ Chief Financial Officer (“CFO”)/Chief Operations Officer (“COO”) or designee will reconcile Epic California Academy’ general ledger with its accounts in the County Treasury. This review and reconciliation will inform Epic California Academy’ preparation of the (1) balance sheet, (2) comparison of budgeted to actual revenues and expenditures to date, and (3) cash flow statement for the Superintendent/Executive Director or Designee and the Board’s regular review, as set forth in Board Policy 3000: Annual Budget and Cash Flow Management.
If Epic California Academy maintains a petty cash fund, the ledger will be reconciled monthly by the CFO/COO or a designee who is not authorized to expend petty cash.
Commingling of Funds
Epic California Academy prohibits commingling funds to such an extent that the funds become blended. For purposes of this policy, blending means that the identity, origin, and source of the funds are lost or unidentifiable. Financial records shall be maintained in a manner that allows auditors to trace, audit, and document all funds.
3080: Debt Management
Adopted 2023-10-26
Revised 2024-01-25
The purpose of this policy is to enhance Epic California Academy’s (“Epic California Academy”) ability to manage its debt in a fiscally conservative and prudent manner. The effects of decisions regarding types of borrowing, covenants and terms, interest rates, and payment structure directly impact the school’s continuing operation. Epic California Academy has thus established this Debt Management Policy to provide goals and guidelines for the Epic California Academy’ borrowings.
Epic California Academy Debt Management Policy is as follows:
- The Superintendent/Executive Director or Designee is responsible for administering and maintaining Epic California Academy current obligations under the direction of the Board of Directors (“Board”). The Chief Financial Officer (“CFO”)/Chief Operations Officer (“COO”) will meet with the Superintendent/Executive Director or designee and the Board, as appropriate, regarding the status of the school’s existing debt and make specific recommendations.
- No new debt shall be incurred without the approval of the Board.
- All approved annual budgets shall include timely repayment of all outstanding debt or include a reasonable repayment plan for such debt if timely repayment is not possible.
- Prior to incurring any new borrowing, the CFO/COO shall prepare a financial analysis showing the effect of the borrowing on current and future operations. Epic California Academy may not borrow if a reasonable financial analysis cannot show timely repayment of all obligations, including the planned borrowing.
- Epic California Academy will seek financing options that are at the lowest interest cost and in the best interests of Epic California Academy.
- Epic California Academy will take all practical precautions and proactive measures to avoid borrowing decisions that can negatively impact current or future operations.
- Epic California Academy will determine the terms, rates, and covenants that will best fit within the overall existing debt structure at the time any new debt is incurred.
- Epic California Academy will explore, assess risk, and implement innovative structuring ideas when they are consistent with the above goals.
- This policy excludes lines of credit associated with vendors used to support student curriculum purchases (Amazon, etc) and which are short-term in nature.
- As stated in our Memorandum of Understanding (“MOU”) with San Juan Unified School District (“SJUSD”), any loans in excess of $25,000 will have a fiscal plan presented to the Board and a copy provided to SJUSD.
3090: Annual Audit
Adopted 2023-10-26
Revised 2024-01-25
The Board of Directors (“Board”) will contract annually with a qualified independent certified public accounting firm to conduct an audit of the organization’s financial statements in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards issued by the Comptroller General of the United States, and, if applicable, the U.S. Office of Management and Budget’s Circular A-133. The selected audit firm must be familiar with these standards, the related State of California and Charter School regulations, and the Standards and Procedures for Audits of California K-12 Local Education Agencies Audit Guide in order to properly conduct the audit engagement. At least every six fiscal years, the organization will contract with a new audit firm or require a change/rotation in audit partners in the seventh year unless a waiver is obtained from the Educational Audit Appeals Panel.
3100: Political Activities, Political Contributions, Expenditures, and Uses of Assets and Resources
Adopted 2023-10-26
Revised 2024-01-25
Epic California Academy’s (“Epic California Academy”)’ employees, Board of Directors (“Board”) or other representatives may engage in political activities on their own time, using their personal assets and resources; however, they may not act or appear to be acting on behalf of Epic California Academy and may not use any of Epic California Academy’ resources to assist in political activities.
Epic California Academy must comply with all federal, state, and local laws and regulations regarding political activities, political contributions, lobbying, and expenditures. Epic California Academy’ funds and assets cannot be used to support or oppose candidates for public office or to engage in political activities including, but not limited to, the following:
- Contributions to, or support/opposition for, political parties or political action committees.
- Contributions to, or support/opposition for, campaigns of individual candidates for public office, including all federal, state, and local elections.
- Contributions to, or support/opposition for, ballot measures, referenda, or recall efforts.
- Purchasing, selling, printing, or assisting in printing any political materials, such as pamphlets, fliers, bumper stickers, or posters.
- Publication of political advertisements via TV, radio, signs, billboards, mail, email, telephone, text message, or the internet (e.g., on Epic California Academy’ website or sharing links to another website).
At the Board’s discretion, Epic California Academy may engage in legislative lobbying and/or employ third parties that act on Epic California Academy’ behalf, within the limits of the law, to present information or advocate for or against laws, regulations, or policies that impact Epic California Academy or the ability to support our student’s success. In no event shall such lobbying expenditures exceed 5% of the Epic California Academy budget or any future IRS rules, regulations or determination for what constitutes a “substantial part” of Epic California Academy’ activities.
Epic California Academy shall comply with applicable requirements of the Political Reform Act when hiring a lobbyist or expending funds to influence legislative or administrative action, as well as any applicable local ordinances.
No Loans to Third Parties
Epic California Academy shall not loan or gift its funds to any third party or organization. Examples of third parties and organizations are employees, board members, foundations, sole statutory members, separate nonprofit parent organizations, and separate nonprofit student body associations.
Nonprofit Integrity Act
Epic California Academy, Inc. shall adhere to the Nonprofit Integrity Act as applicable.
3110: Generally Accepted Standards of Fiscal Management
Adopted 2023-10-26
Revised 2024-01-25
Charter schools are required to utilize prudent fiscal practices and generally accepted accounting principles. The primary responsibility for the fair presentation of Epic California Academy’s (“Epic California Academy”) financial information rests with the reporting management of the organization, on which Epic California Academy’ independent financial audit and financial statements rely. Accordingly, Epic California Academy management and other staff adhere to the following standards:
- Preparation of a fiscal year balanced budget that clearly delineates expected expenditures by category, synced to Epic California Academy’ charter and approved by the Board of Directors (“Board”) prior to July 1.
- Accounting records should properly and accurately record and account for all cash equivalent transactions, including actual cash. Accounting information should be relevant, reliable, comparable, up-to-date, and consistent and must be available for the preparation of reliable financial statements.
- Compliance with Federal and state laws/regulations, State Board of Education policies, and other compliance requirements such as Epic California Academy’ Memorandum of Understanding (“MOU”) with the charter authorizer, San Juan Unified School District (“SJUSD”).
- Maintenance of documentation that outlines internal controls on business practices and operations.
- Transactions are executed in compliance with laws, regulations, and the proEpic California Academy of appropriately approved contracts or grant agreements.
- Funds, property, and other assets of Epic California Academy are safeguarded against loss from unauthorized use or disposition.
- Required independent audits are performed and submitted when due in a timely manner as prescribed by the law and by the California Department of Education (“CDE”).
- Epic California Academy should have documentation that supports its financial statements, and that reflects its financial position/condition, results of operations or changes in net assets, and, where appropriate, cash flows.
- Any necessary corrective action plans on any audit findings must be completed in writing, and proposed changes must be implemented in the subsequent fiscal year and/or as set forth in the corrective action plan.
- Epic California Academy is committed to strong financial systems and internal controls, timely and accurate financial reports, a balanced budget, adequate cash flow and positive fund balances, and effective oversight by the governing board.
- Epic California Academy, Inc. shall adhere to the Nonprofit Integrity Act as applicable.
3120: Donations
Adopted 2023-10-26
Revised 2024-01-25
When funds are donated to Epic California Academy (”Epic California Academy”), Epic California Academy will endeavor to promptly provide a donor acknowledgment letter thanking the donor. For charitable contributions of $250 or more, Epic California Academy’ donor acknowledgment letter will memorialize the donation date and amount (or description, for non-monetary donations), specific purpose, if any, inform the donor of Epic California Academy’ tax-exempt status, and provide Epic California Academy’ employer identification number. Unless donated funds are more specifically restricted, charitable contributions to Epic California Academy are utilized in furtherance of Epic California Academy’ charitable purposes. On the occasion that a grant, donation, or gift card is donated to the school for a particular purpose, the spirit of the intent in which the donation is received will be honored so long as it is lawful to do so. For example, if a donation is given specifically to provide science equipment for students, then funds will be utilized in accordance with that donor’s intent.
3130: Filing of Governmental Returns
Adopted 2023-10-26
Revised 2024-01-25
Filing of Governmental Returns and Corporate Documents
The Chief Financial Officer (“CFO”)/Chief Operations Officer (“COO”) is responsible for ensuring that Epic California Academy (“Epic California Academy”) follows all governmental and corporate filing requirements. This includes, but is not limited to, filings in the following categories:
- Annual information returns with the Internal Revenue Service (IRS) and Franchise Tax Board (FTB)
- Information returns for retirement plans
- Payroll withholding tax returns
- Information filed with the California Secretary of State and Fair Political Practices Commission, as applicable.
The following list of reports and returns are the responsibility of the CFO/COO to file, as applicable:
- Form 990, Return of Organization Exempt from Income Tax
- Form 199, Exempt Organization Annual Information Statement or Return (California)
- Form 5500, Annual Return/Report of Employee Benefit Plan
- Federal and State Payroll Returns
- SF-SAC, the data collection form for reporting audits of state, local government, and nonprofit organizations (if applicable)
- Forms 1099, as applicable
- Form 1096, Annual Summary and Transmittal of U.S. Information Returns (if applicable)
- Payment to Agency Report, California Form 801 (if applicable)
- Form SI-100, Statement of Information filed with California Secretary of State every 2 years, as well as when officers/corporate information changes
- Annual property tax exemption claim (if applicable)
- Form W-2, Wage and Tax Statement
- Form W-3, Transmittal of Wage and Tax Statements (if applicable)
Reports Regarding Unrelated Business Income
The CFO/COO is also responsible for tracking and filing reports and returns relating to any unrelated business activities of the nonprofit, including the Form 990-T and Exempt Organization Business Income Tax Return (if applicable). Funds generated from unrelated business activities should be separately tracked in the charter school’s general ledger to facilitate tracking and accumulation, if any, of unrelated trade or business activities income.
3140: Appropriate Use of Funds
Adopted 2023-10-26
Revised 2024-01-25
The primary purpose of all expenditures of Epic California Academy’s (“Epic California Academy”) public funds shall be for public education purposes in the determination of Epic California Academy. In no event shall public funds be spent on gifts for individual students, employees, Board members, or community members. For example, flowers shall not be sent by the school to students, employees, Board members, or community members who are sick. An award certificate, other tokens of recognition, or plaque of de minimis value does not constitute a gift and may be given for exceptional contributions by employees or awards to students for excellence. These expenditures, as well as flowers or decorations for an awards ceremony or commemorative event, refreshments/meals for students during the school day or for meetings for the purpose of conducting school business, research, and promotional activities to advance public education, and other expenditures that serve public purposes, are permissible as authorized by the Superintendent/Executive Director or Designee. Employee compensation, including bonus or other incentive pay, is not a gift and is permissible so long as it is duly approved, supports Epic California Academy’ educational purposes, and Epic California Academy receives adequate consideration in return for the compensation.
No Loans to Third Parties
Epic California Academy shall not loan or gift its funds to any third party or organization. Examples of third parties and organizations are employees, board members, foundations, sole statutory members, separate nonprofit parent organizations, and separate nonprofit student body associations.
3150: Student Records Retention Policy
Adopted 2023-10-26
Revised 2024-01-25
1. Purpose
The purpose of this Student Records Retention Policy (“policy”) is to provide Epic California Academy (“Epic California Academy”) details for maintaining student records and provide appropriate guidelines for the maintaining, accessing, and disposing of student records.
2. Terms and Definitions
“Student record” means any item of information (in handwriting, print, tape, film, computer, or other medium) directly related to an identifiable student and maintained or required to be maintained by Epic California Academy or any employee in the performance of his/her duties. Student records are divided into the following three categories: (1) mandatory permanent student records, (2) mandatory interim student records, and (3) permitted student records. Student records do not include:
- Directory information.
- Informal notes compiled by a school officer or employee, which remain in the sole possession of the maker, are used only as a personal memory aid and are not accessible or revealed to any other person except a substitute.
- Records of any law enforcement unit of Epic California Academy, subject to the proEpic California Academy of Title 34 of the Code of Federal Regulations section 99.8.
- Records created or received by Epic California Academy after an individual is no longer a pupil in attendance and that are not directly related to the individual’s attendance as a pupil.
- Grades on peer-graded papers before they are collected and recorded by the teacher.
- Test protocols, test instruments, and interpretative materials that do not contain the pupil’s name or other personally identifiable information (defined below).
“Mandatory permanent student record” is a record that Epic California Academy is required to maintain in perpetuity and which Epic California Academy has been directed to compile by state law, regulation, or administrative directive. Such records shall include the following:
- Legal name of pupil
- Date of birth
- Method of verification of birth date
- Sex of pupil
- Place of birth
- Name and address of parent of the minor pupil
- Address of minor pupil if different than the above
- An annual verification of the name and address of the parent and the residence of the pupil
- Entering and leaving date of each school year and for any summer session or other extra session
- Subjects taken during each year, half-year, summer session, or quarter
- If marks or credits are given, the mark or number of credits toward graduation allows for work taken
- Verification of or exemption from required immunizations
- Date of high school graduation or equivalent
- All records pertaining to any accident or injury involving a minor for which a claim for damages has been filed as required by law, including any policy of liability insurance relating thereto, except that these records cease to be Class–Permanent records one year after the claim has been settled or the statute of limitations has run
“Mandatory interim student record” is a record that Epic California Academy is required to compile and maintain for a period of three (3) years after the student leaves Epic California Academy or the usefulness ceases. Such records include:
- A log or record identifying those persons (except authorized school personnel) or organizations requesting or receiving information from the record. The log or record shall be accessible only to the legal parent or guardian, the eligible pupil, a dependent adult pupil, an adult pupil, or the custodian of records.
- Health information, including Child Health Developmental Disabilities Prevention Program verification or waiver.
- Participation in special education programs, including required tests, case studies, authorizations, and actions necessary to establish eligibility for admission or discharge.
- Language training records.
- Progress slips and/or notices.
- Parental restrictions regarding access to directory information or related stipulations.
- Parent or adult pupil rejoinders to challenged records and to disciplinary action.
- Parental authorizations or prohibitions of pupil participation in specific programs.
- Results of standardized tests administered within the preceding three years.
“Permitted student record” is a record that has clear importance only to the current educational program and is maintained for appropriate educational purposes. It must be kept for six (6) months after its usefulness ceases. Such records may include:
- Objective counselor and/or teacher ratings.
- Standardized test results older than three years.
- Routine discipline data.
- Verified reports of relevant behavioral patterns.
- All disciplinary notices.
- Attendance records are not covered in the Administrative Code Section 400.
“Personally identifiable information” includes, but is not limited to:
- The student’s name.
- The name of the student’s parent/guardian or other family members.
- The address of the student or student’s family.
- A personal identifier, such as the student’s social security number, student number, or biometric record (e.g., fingerprints, retina and iris patterns, voiceprints, DNA sequence, facial characteristics, and handwriting).
- Other indirect identifiers, such as the student’s date of birth, place of birth, and mother’s maiden name.
- Other information that, alone or in combination, is linked or linkable to a specific student would allow a reasonable person in the school community who does not have personal knowledge of the relevant circumstances to identify the student with reasonable certainty.
- Information requested by a person who Epic California Academy reasonably believes knows the identity of the student to whom the student record relates.
“Parent” means a natural parent, an adopted parent, a legal guardian, a surrogate parent, or a foster parent. If the parents are divorced or legally separated, only a parent with legal custody of the pupil may challenge the content of the record, offer a written response to a record, or consent to release records to others. Either parent may grant consent if both parents have notified, in writing, Epic California Academy that an agreement has been made. If a student has attained the age of 18 years or is attending an institution of postsecondary education, the permission or consent required of, and the rights accorded to, the parents or guardian of the student shall thereafter only be required of, and accorded to, the student, unless the student transfers his or her educational rights.
3. Maintenance, Retention, and Destruction of Student Records
Student records shall be maintained in a central file at Epic California Academy attended by the student or, when records are maintained at different locations, a notation shall be placed in the central file indicating where other records may be found.
Epic California Academy shall not collect or solicit social security numbers or the last four digits of social security numbers from pupils or their parents or guardians unless otherwise required to do so by state or federal law.
Epic California Academy’ Senior Director of Operations is the designated Custodian of Records. The Custodian of Records and/or his or her designee shall be responsible for overseeing the implementation of this policy and processing any requests for access to or transfer of student records. The Custodian of Records is responsible for the security of student records maintained by Epic California Academy and for devising procedures for assuring that access to such records is limited to authorized persons.
Student records shall be maintained consistent with the classification of the record as either mandatory permanent student record, mandatory interim student record, or permitted student record. The retention period for the records shall be as follows:
- Mandatory permanent student records: Must be maintained for an indefinite period of time.
- Mandatory interim student records: Unless forwarded to another school, must be maintained for a period of three (3) school years after the student leaves Epic California Academy or the usefulness of the record ceases. The mandatory interim student record may be destroyed thereafter.
- Permitted student records: May be destroyed when their usefulness ceases. They may be destroyed six (6) months after the student completes or withdraws from the educational program and their usefulness ceases.
Student records may be destroyed by shredding the records or by other means to assure complete destruction and to prevent any reconstruction of the records and disclosure of any personally identifiable information.
4. Access to Student Records
In accordance with state and federal laws, absolute access to any student record shall be granted to:
- Parents/guardians of students younger than age 18 years, including the parent who is not the student’s custodial parent.
- An adult student, or a student under the age of 18 years who attends a postsecondary institution, in which case the student alone shall exercise rights related to the student’s records and grant consent for the release of records.
- Parents/guardians of an adult student with disabilities who is age 18 years or older and has been declared incompetent under state law.
In addition, as permitted by law, certain individuals or agencies may have access to particular records that are relevant to their legitimate educational interest or other legally authorized purpose.
Requesting Student Records
To inspect, review, or obtain copies of student records, authorized persons shall submit a request to the Custodian of Records. For any individual granted access based on a legitimate educational interest, the request shall specify the interest involved. Within five business days following the date of request, the authorized person shall be granted access to inspect, review, and obtain copies of student records during regular school hours.
When required by law, a student’s parent/guardian or an adult student shall provide written, signed, and dated consent before Epic California Academy discloses the student’s record. If the parent/guardian or adult student refuses to provide written consent for the release of student information, Epic California Academy shall not release the information unless it is otherwise subject to release based on a court order or a lawful subpoena.
Access Logs
A log shall be maintained for each student’s record, which lists all persons, agencies, or organizations requesting or receiving information from the record and the legitimate educational interest of the requester. In every instance of inspection by persons who do not have assigned educational responsibility, the Custodian of Records shall make an entry in the log indicating the record inspected, the name of the person granted access, the reason access was granted, and the time and circumstances of inspection. The log shall be open to inspection only by the parent/guardian, adult student, dependent adult student, custodian of records, and certain state or federal officials specified in Education Code section 49064.
Duplication of Student Records
To provide copies of any student record, Epic California Academy may charge a reasonable fee not to exceed the actual cost of providing the copies. No charge shall be made for providing up to two transcripts or up to two verifications of various records for any former student. No charge shall be made to locate or retrieve any student record.
Contract for Digital Storage, Management, and Retrieval of Student Records
Epic California Academy may enter into a contract with a third party for the digital storage, management, and retrieval of student records and/or to authorize a third-party provider of digital software to access, store, and use student records, provided that the contract meets the requirements under Education Code section 49073.1 and other applicable state and federal laws.
5. Changes to Student Records
Only a parent/guardian having legal custody of a student or an adult student may challenge the content of a record or offer a written response to a record. No additions or changes shall be made to a student’s record after high school graduation or permanent departure, other than routine updating, unless required by law or with the prior consent of the parent/guardian or adult student.
When a former student submits a state-issued driver’s license, birth certificate, passport, social security card, court order, or other government-issued documentation demonstrating that the former student’s legal name and/or gender has changed, Epic California Academy shall update the former student’s records to reflect the updated legal name and/or gender. Upon request by the former student, Epic California Academy shall reissue any documents conferred upon the former student, including, but not limited to, a transcript, a high school diploma, a high school equivalency certificate, or other similar documents. Epic California Academy is not required to modify records that the former student has not requested for modification or re-issuance.
The documentation provided by a former pupil demonstrating legal name or gender change may include, but need not be limited to, any of the following:
- State-issued driver’s license
- Birth certificate
- Passport
- Social security card
- Court order indicating a name change or a gender change, or both
If the former student’s name or gender is changed and the requested records are reissued, a new document shall be added to the former student’s file that includes all of the following information:
- The date of the request
- The date the requested records were reissued to the former student
- A list of the records that were requested by and reissued to the former student
- The type of documentation, if any, provided by the former student to demonstrate a legal change to the student’s name and/or gender
- The name of the employee who completed the request
- The current and former names and/or genders of the student
Any former student who submits a request to change the legal name or gender on the student’s records but is unable to provide any government-issued documentation demonstrating the legal name or gender change may request a name or gender change through the process described in Education Code section 49070.
3160: Disposal of Surplus Equipment and Materials
Adopted 2023-10-26
Revised 2024-01-25
Epic California Academy (“Epic California Academy”) is committed to responsible policies and procedures for the sale
and disposal of worn-out, obsolete, or unneeded books, equipment, supplies, and other materials.
The intent of this policy is to ensure responsible management of Epic California Academy’ assets while providing a
practicable process for Epic California Academy to dispose of items that are no longer useful for its program. To the
extent this policy conflicts with another Epic California Academy policy, the terms of this policy shall apply.
1. Methods by Which Epic California Academy May Dispose of Materials:
Epic California Academy may dispose of unneeded or obsolete instructional materials in its possession in any of the following ways:
- By sale, where practicable.
- By donating to a nonprofit charitable organization.
- By donation to a school district governing board, county free library, or other state
institution. - By donation to any public agency or program.
- By donation to children or adults for the purpose of increasing the general literacy of
the people. - By disposal and/or recycling, where appropriate.
2. Evaluation Process for Determining Worn Out, Obsolete and Unneeded Items:
On an ongoing basis and as needed, the Superintendent/Executive Director or Designee will evaluate the school
equipment, supplies, or other materials based on the definitions below and determine
whether or not items are worn out, obsolete, and/or unneeded. Worn out, obsolete, and/or
unneeded items should be reported to the business office/accounting department, including
a description, serial number (if applicable), and condition of the item. Epic California Academy should keep a
record of the sale, donation, and/or disposal of such items.
- Worn Out or Obsolete: Old/outdated model/version/publication at the end of its
product life cycle. May also include items that have not been used for more than a
year and for which there is no foreseeable use in the near future. - Unneeded Items: Items whose type and/or stock surpasses the need of Epic California Academy and/or
exceeds available storage space. May also include items that have not been used for
more than a year, and there is no foreseeable use in the near future. - Donation, Sale, and/or Disposal of Materials: The Superintendent/Executive Director or Designee may direct the donation, sale, and/or disposal of worn-out, obsolete, or unneeded school property through the following methods. For computers and similar devices that store information, Epic California Academy will ensure the following: 1) as applicable, records stored on the computers have been transferred to an appropriate data storage system in compliance with applicable record retention laws; 2) once all necessary records are transferred, devices will be wiped of any confidential information and either sold, donated, or recycled at an e-recycling center (not thrown away).
- In evaluating worn-out, obsolete, and/or unneeded items, Epic California Academy will determine and consider whether the items are of more than nominal value. In determining whether an item is of more than nominal value, Epic California Academy will consider whether it would cost the school more to go through the process of selling the items (including an appraisal if necessary) than it could obtain by selling them.
- For item(s) of more than nominal value, Epic California Academy will endeavor to sell the items for a fair market value. Epic California Academy may offer item(s) for sale first to stakeholders (e.g. parents, staff, and families) and/or may sell items at auction or by any other permissible method, as Epic California Academy determines is appropriate.
- For item(s) of nominal or no value or for items of value that do not sell after reasonable effort, the items(s) may be donated to a nonprofit charitable organization, a school district governing board, a county free library, or other state institution, a public agency or program, or to children or adults for the purpose of increasing the general literacy of the people.
- In all cases of sale or donation, the item(s) shall be offered “as is” without any warranty and buyers or donees agree to waive all claims with respect to the condition or utility of the property.
- Property not suitable for sale or donation may be destroyed or otherwise disposed of by any economical means. Computers and any other item(s) constituting universal waste will be e-recycled as required by law.
3. Where the Money Will be Deposited: Revenue received from the sale of property described hereunder shall be either deposited in Epic California Academy’ unrestricted reserve or general fund or credited to the fund from which the original purchase was made.
4. Policy Implementation: Epic California Academy staff must implement this policy consistent with applicable legal requirements, such as applicable laws regarding conflicts of interest and
nondiscrimination. Epic California Academy staff shall conduct sales, donations, and disposals fairly and equitably without regard to personal preferences for any potential recipient of Epic California Academy
property.
3170: Record Retention and Disposal Policy
Adopted 2023-10-26
Revised 2024-01-25
1. Purpose
The records of Epic California Academy (“Epic California Academy”) are important to our efficient and effective operation. Epic California Academy’ records include those produced by Epic California Academy’ employees, volunteers, and board members, both in electronic and paper form, when acting in the course and scope of their roles at Epic California Academy, and/or using Epic California Academy’ computers, email accounts, or other electronic storage devices owned or controlled by Epic California Academy. Items that may seem unimportant, such as interoffice emails, desktop calendars, and printed memoranda, nonetheless may be considered records under this Policy.
The purpose of this policy is to ensure that necessary records of Epic California Academy are adequately protected and maintained and to ensure that records no longer needed by Epic California Academy or that are of no value are appropriately discarded at the proper time. This policy should also aid employees, volunteers, and board members of Epic California Academy (sometimes referred to herein as “you”) in understanding your obligations in retaining electronic documents, including email, web files, text files, sound and movie files, .pdf documents, and Microsoft Office or other native-format files. If you are ever uncertain as to any procedures set forth in this policy (e.g., what records to retain or destroy, when to do so, or how), it is your responsibility to seek direction from the designated Administrator (defined below).
2. Policy and Scope
This policy applies to all records (used interchangeably with “documents”) generated in the course of Epic California Academy’ operations, including both original documents and reproductions, and also applies to electronic documents (e.g., emails and documents saved electronically).
The goals of this policy are to:
- Retain important documents for reference and future use in accordance with applicable laws;
- Delete or dispose of documents that are no longer necessary for the operation of Epic California Academy;
- Organize important documents for efficient retrieval; and
- Ensure that Epic California Academy’ employees, volunteers, and board members know which documents should be retained, the length of their retention, means of storage, and when and how they should be destroyed.
Federal and state laws require Epic California Academy to maintain certain types of records for particular periods. Failure to maintain such records could subject Epic California Academy to penalties and fines, lead to compliance issues, obstruct justice, affect evidence, and/or seriously harm Epic California Academy’ position in a tax or litigation matter. Thus, it is important that you understand and comply with this policy.
Notwithstanding anything contrary to this policy, you should retain and seek direction from the Administrator concerning any records which you reasonably believe: (i) are or could be relevant to any future tax or litigation matter; (ii) arise from a dispute that could lead to litigation; or (iii) pertain to a lawsuit in which Epic California Academy is a party. In such situations, Epic California Academy must preserve records unless or until Epic California Academy’ legal counsel determines that the records can be destroyed in accordance with this policy and applicable legal requirements.
3. Administration and Oversight
Attached as Appendix A is a Record Retention Schedule (“Schedule”) that is approved as the initial maintenance, retention, and disposal schedule for physical and electronic records of Epic California Academy. The Schedule lists several categories of records, including those with specific retention periods. The Human Resources Director of Epic California Academy (the “Administrator”) or her/his designee is in charge of the administration of this policy and the implementation of processes and procedures to ensure that the Schedule is followed. The Administrator is also authorized to: (i) make modifications to the Schedule from time to time to ensure that it is in compliance with local, state, and federal laws and includes the appropriate record categories for Epic California Academy; (ii) monitor local, state, and federal laws affecting record retention; (iii) annually review the record retention and disposal program, and (iv) monitor compliance with this policy.
To ensure compliance with this policy, the Administrator is responsible for the following oversight functions:
- Informing employees, volunteers, and board members, as needed, of this policy and the Schedule, as well as any changes to the policy and/or Schedule;
- Providing oversight of actual retention and destruction/disposal of documents;
- Ensuring proper storage of documents;
- Periodically checking to see if proper retention periods are in place; and
- Suspending the destruction of documents upon actual or foreseeable litigation.
All questions relating to document retention and/or destruction should be directly addressed to the Administrator.
4. How Records are Stored
Tangible Records
Tangible records are those that you must physically move to store, such as paper records (including records printed versions of electronically saved documents). Active records that are retained as set forth in the Schedule and need to be easily accessible may be stored in Epic California Academy’ administration space or equipment. Inactive tangible records that are retained as set forth in the Schedule may be sent to an off-site storage facility.
Electronic Records
Electronic records are those which are stored digitally, such as email and other computer files. Email that is required to be retained as set forth in the Schedule should be either printed and stored as tangible records or stored electronically. Epic California Academy may utilize computer applications that duplicate files, which are then backed up on central servers or by other means. Nonetheless, it is important that all employees take precautionary measures to save work and records on Epic California Academy’ network drive(s). If you save sensitive or important records on other drives or memory devices, you should duplicate the information in an alternate format so that records are not lost or damaged.
5. Destruction/Deletion of Records
Tangible Records
Tangible records that are not required to be retained as set forth in the Schedule should be destroyed by shredding or some other means that will render them unreadable. If you have a record that you do not know how to destroy, such as a compact disk or tape recording, ask the advice of the Administrator.
Electronic Records
Electronic records that you “delete” from a device typically remain in Epic California Academy’ system. Epic California Academy’ information technology (“IT”) staff or vendor will be responsible for permanently removing deleted files from the entire system. Permanently deleting a file is usually sufficient in most circumstances to dispose of a record. Keep in mind where duplicate records are involved, both/all copies should be destroyed/deleted where proper.
6. Suspension of Record Disposal In Event of Litigation or Claims
In the event Epic California Academy is served with a document subpoena, or an employee becomes aware of a governmental investigation or audit concerning Epic California Academy or the commencement of any litigation against or concerning Epic California Academy, such employee shall inform the Administrator, and any further disposal of documents shall be suspended until such time as the Administrator, with the advice of counsel, determines otherwise. The Administrator shall take such steps as is necessary to promptly inform all staff of any suspension in the further disposal of documents.
APPENDIX A
RECORD RETENTION SCHEDULE
This Record Retention Schedule is organized as follows:
SECTION TOPIC
- Accounting and Finance
- Compliance Reports
- Contracts
- Corporate Records
- Correspondence and Internal Memoranda
- Electronic Documents
- Grant Records
- Insurance Records
- Legal Files and Papers
- Payroll Documents
- Pension Documents
- Personnel Records
- Property Records
- Tax Records
- Donation Records
- Programs & Services Records
- Other
_______________________________________
a. ACCOUNTING AND FINANCE
b. COMPLIANCE REPORTS
c. CONTRACTS
d. CORPORATE RECORDS
e. CORRESPONDENCE AND INTERNAL MEMORANDA
General Principle: Key correspondence and internal memoranda should be retained for the same period as the document they pertain to or support. For instance, a letter pertaining to a particular contract would be retained as long as the contract (7 years after expiration). It is recommended that records supporting a particular project be kept with the project and take on the retention time of the particular project file.
Correspondence or memoranda that do not pertain to documents having a prescribed retention period or draft correspondence or memoranda should generally be discarded sooner. These may be divided into two general categories:
Those pertaining to routine matters and having no significant, lasting consequences should be discarded at any time and at least within two years. Some examples include:
-
Routine letters and notes that require no acknowledgment or follow‑up, such as notes of appreciation, congratulations, letters of transmittal, and plans for meetings.
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Form letters that require no follow‑up.
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Letters of general inquiry and replies that complete a cycle of correspondence.
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Letters or complaints requesting specific action that have no further value after changes are made or action is taken (such as name or address change).
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Other letters of inconsequential subject matter or that definitely close correspondence to which no further reference will be necessary.
Please note that copies of interoffice correspondence and documents where a copy will be in the originating department file should be read and destroyed unless that information provides reference to or direction to other documents and must be kept for project traceability.
Those pertaining to non‑routine matters or having significant lasting consequences should generally be retained permanently.
f. ELECTRONIC DOCUMENTS
Epic California Academy does not automatically delete electronic files beyond the dates specified in this policy, but may do so at its discretion. Epic California Academy may regularly keep a backup of all electronic files (including email) on Epic California Academy’ server(s). Any backup is meant to be a safeguard to retrieve lost information within a one-year retrieval period should documents on the network experience problems. Any backup copy would be considered a safeguard for the record retention system of Epic California Academy, but is not considered an official repository of Epic California Academy’ records.
In certain cases, a document will be maintained in both paper and electronic form. In such cases, the official document will be an electronic document, and the paper version may be destroyed.
Electronic Mail: Not all email needs to be retained, depending on the subject matter. If the content of an email requires it to be retained under any sections of this policy, you are responsible for printing and storing the email as a tangible record or storing the email electronically.
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All emails—from internal or external sources—may be deleted immediately by email users unless the content of the email requires it to be retained under any sections of this policy. The length of time that an email should be retained should be based on the content of the email and the category under the various sections of this policy.
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Epic California Academy may automatically archive email for up to one fiscal year beginning July 1 and ending June 30 of the year after the email was created. For example, if the email was created in February 2022, during the fiscal year 2021-22, the email may be archived until the end of the 2022-23 fiscal year or June 30, 2023. All emails not saved by the user and older than one fiscal year after the year the email was created may be automatically deleted from Epic California Academy email system, servers, backup servers, and any other electronic storage system as early as the first day of the subsequent fiscal year. The subsequent fiscal year is defined as beginning on July 1.
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Staff will strive to keep all of their email communication related to Epic California Academy issues.
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You will not store or transfer school-related email on non-work-related computers except as necessary or appropriate for school purposes.
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You will take care not to send confidential/proprietary information of Epic California Academy to outside sources.
Electronic Documents, which include Microsoft Office Suite, PDF files, Google Docs, etc. The appropriate retention period depends on the subject matter.
-
PDF documents – The length of time that a PDF file should be retained should be based on the content of the file and the category under the various sections of this policy.
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Text/formatted files – You will conduct annual reviews of all text/formatted files (e.g., Microsoft Word or Google Docs) and will delete all those you consider unnecessary or outdated.
Web Page Files: Internet Cookies may be scheduled to be deleted automatically once per month.
g. GRANT RECORDS
h. INSURANCE RECORDS
j. PAYROLL DOCUMENTS
k. PENSION DOCUMENTS
General Principle: Pension documents and supporting employee data shall be kept in such a manner that can establish at all times whether or not any pension is payable to any person and, if so, the amount of such pension.
i. PERSONNEL RECORDS
m. PROPERTY RECORDS
n. TAX RECORDS
General Principle: Epic California Academy must keep books of account or records as are sufficient to establish the amount of gross income, deductions, credits, or other matters required to be shown in any tax return.
These documents and records shall be kept for as long as the contents thereof may become material in the administration of federal, state, and local income, franchise, sales, and property tax laws.
o. DONATION RECORDS
p. PROGRAMS AND SERVICES RECORDS
q. OTHER
3180: GASB 87 Lease Capitalization
Adopted 2022-06-23
Revised 2024-01-25
General Policy
If Epic California Academy (Epic California Academy) enters into one or more leases that are not classified as short-term and whose aggregate payments made or received exceed $0.5 million, those leases will be capitalized (“Capitalization Threshold”) in compliance with Government Accounting Standards Board (GASB) 87 , except as noted below:
- Leases that transfer ownership and do not contain termination options;
- Short-term leases (12 months or less);
- Leases of assets that are investments;
- Intangible assets (mineral rights, patents, software, copyrights);
- Biological assets (timber, living plants, living animals);
- Supply contracts; and
- $1.00 leases or similar, not an exchange/exchange-like transaction.
This policy shall be reviewed annually and adjusted as conditions warrant. This policy, and future changes to it, will be approved by the Superintendent or designee.
The capitalization threshold of $0.5 million represents less than five percent (5%) of Epic California Academy’ net position.
Definitions
Lease: A contract that conveys control of the right to use another entity’s nonfinancial asset (underlying asset) as specified by the contract for a period of time in an exchange or exchange-like transaction.
Short-term lease: A lease that, at the beginning of its term, has a maximum possible term under the contract, including any option to extend regardless of its probability of being exercised, of 12 months or less.
Financed purchase: If a contract (1) transfers ownership of the underlying asset to the lessee by the end of the contract and (2) does not contain termination options other than fiscal funding or cancellation clauses, the contract is not a lease and should be reported as a financed purchase.
Finance Lease: A finance lease is a leasing arrangement in which the lessee obtains ownership of the leased asset by the end of the lease term. With the implementation of GASB 87 effective for fiscal years beginning after June 15, 2021, there is no longer an operating vs. capital classification. Instead, all leases will be referred to as financing leases.
Measurement of a Finance Lease
As of the commencement date of a lease, the lessee measures the liability and the right-of-use asset associated with the lease. These measurements are derived as follows:
Lease Liability: The present value of the lease payments, discounted at the discount rate for the lease. This rate is the rate implicit in the lease when that rate is readily determinable. If not, the lessee instead uses its incremental borrowing rate.
Right-of-Use Asset: The initial amount of the lease liability, plus any lease payments made to the lessor before the lease commencement date, plus any initial direct costs incurred, minus any lease incentives received.
Determining Lease Term
Lease terms are:
- The noncancelable period;
- PLUS the period covered by option to terminate when it is NOT certain to be exercised;
- PLUS the period covered by the option to extend when it is reasonably certain to be exercised;
- EQUALS the total lease term
Epic California Academy will reassess the lease term if one or more of the following occurs:
- Lessee or lessor elects to exercise an option even though originally determined that the lessee or lessor would not exercise that option.
- Lessee or lessor elects to not exercise an option even though previously determined that the lessee or lessor would exercise that option.
- An event specified in the contract that requires an extension or termination of the lease takes place.
This Board policy will be reviewed annually and adjusted as conditions warrant, such as changes in net assets, or other required updates by the Government Accounting Standards Board (GASB).
3190: GASB 96 Subscription-Based Information Technology Arrangement Capitalization
Adopted 2022-07-01
Revised 2024-01-25
Background
In recent years, subscription-based information technology arrangements (SBITAs) have become an increasingly common method for government entities to access and use software to perform their operations. SBITAs provide a flexible and cost-effective solution for governments without the upfront costs associated with traditional software licenses. Rather than purchasing software outright, government entities can subscribe to software services from vendors for a specified period, typically one year or more, paying for the service on a recurring basis. SBITAs often include additional benefits like automatic software updates, data backup and recovery, and technical support. Given the increasing prevalence of SBITAs, it is important for governments to understand the accounting and reporting implications of these arrangements to ensure that they are accurately reflected in the financial statements.
The Government Accounting Standards Board (GASB) has issued Statement Number 96 (GASB 96, “the standard”), which is effective for fiscal years that begin after June 15; GASB 96 provides guidance on proper accounting for SBITAs while improving the comparability and consistency of financial reporting across governments that use these arrangements.
Purpose
This policy states the capitalization threshold Epic California Academy (“Epic California Academy”) has established for SBITAs, provides guidance to Epic California Academy’ staff about when it is appropriate to capitalize SBITAs, and describes the measurement and accounting treatment of SBITAs under GASB Statement No. 96.
Definitions
Subscription-based information technology arrangement (SBITA): A contract that conveys control of the right to use another party’s (a SBITA vendor’s) IT software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction. Short-term SBITA: Subscription-based information technology arrangements that have a maximum possible term of 12 months or less, including any options to extend, regardless of their probability of being exercised. Subscription payments for short-term SBITAs are recognized as outflows of resources (e.g., expenditures). Subscription term: The period during which Epic California Academy has a noncancelable right to use the underlying IT assets (referred to as the non-cancelable period), plus the following periods, if applicable:
- Periods covered by Epic California Academy’ option to extend the SBITA if it is reasonably certain, based on all relevant factors, that Epic California Academy will exercise that option.
- Periods covered by Epic California Academy’ option to terminate the SBITA if it is reasonably certain, based on all relevant factors, that Epic California Academy will not exercise that option.
- Periods covered by a SBITA vendor’s option to extend the SBITA if it is reasonably certain, based on all relevant factors, that the SBITA vendor will exercise that option.
- Periods covered by a SBITA vendor’s option to terminate the SBITA if it is reasonably certain, based on all relevant factors, that the SBITA vendor will not exercise that option.
Cancelable periods: Periods in which both Epic California Academy and the SBITA vendor have an option to terminate the SBITA without requiring the permission of the other party (or if both parties have to agree to extend). Noncancelable period: The period of a contract during which the contract cannot be terminated without the consent of the other party.
General Policy
Epic California Academy has established a capitalization threshold of 8% of total assets of net position for SBITAs (SBITA capitalization threshold) that are subject to the requirements of GASB 96. SBITAs whose payments in aggregate during the subscription term are below this threshold will not be capitalized, as Epic California Academy has determined that such IT arrangements are not material to its financial statements. The capitalization threshold will be reviewed regularly and adjusted as conditions warrant to ensure compliance with GASB 96 and any subsequent amendments. Changes to this policy shall be approved by the Chief Operations Officer/Chief Financial Officer (COO/CFO).
Qualifying Criteria
If a contract meets all the following criteria, the contract is subject to the treatment of SBITAs described in GASB 96 and will be capitalized accordingly:
- The contract meets the definition of SBITA as defined in the standard.
- The contract is not a short-term SBITA, as defined.
- The contract is not subject to any exclusions listed in the standard.
- The payments in aggregate called for under the contract meet or exceed the Epic California Academy SBITA capitalization threshold.
Exclusions
The proEpic California Academy of GASB Statement 96 do not apply to the following:
- SBITAs that are not considered capital assets, such as short-term SBITAs with a maximum possible term of 12 months or less, including any options to extend.
- SBITAs that provide the government with ownership or indefinite use of the vendor’s IT assets, arrangements for internally generated software, or commercially available software acquired through perpetual licensing agreements.
- SBITAs that convey control of the right to use another party’s combination of IT software and tangible capital assets that meets the definition of a lease in GASB Statement No. 87, Leases.
- SBITAs that are not considered subscription-based, such as contracts that solely provide IT support services, which are excluded from the definition of a SBITA in paragraph 8 of the standard.
- Contracts in which Epic California Academy provides the right to use its IT software and associated capital assets to other entities through SBITAs.
- Contracts that meet the definition of a public-private and public-public partnership in GASB 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements.
- SBITAs that are not material to Epic California Academy’ financial statements, as the standard allows for materiality considerations in the application of its proEpic California Academy.
Recognition and Measurement for SBITAs Other Than Short-Term Under GASB 96, Epic California Academy will recognize a right-to-use subscription asset and a corresponding subscription liability. The subscription liability should be recognized at the start of the subscription term when the subscription asset is placed into service; this occurs when the initial implementation phase is complete and Epic California Academy obtains control of the right to use the underlying IT assets.
Subscription Liability
The subscription liability is initially measured as the present value of subscription payments expected to be made during the subscription term. Subscription payments are discounted at the implicit rate when known; if unknown, a reasonable incremental borrowing rate will be used. The discount on the subscription liability is amortized over subsequent accounting periods. The amortization is calculated using the effective interest method, which results in a constant periodic interest rate applied to the outstanding balance of the subscription liability. The effective interest rate is calculated at the inception of the subscription liability and is based on the discount rate used to measure the liability, adjusted for any changes in the liability’s expected cash flows. Any subscription payments made should be allocated first to the accrued interest liability and then to the subscription liability. The financial statements should include disclosure of the amount of interest expense recognized during the reporting period and the amount of the discount on the subscription liability that has been amortized to date (i.e.,accumulated amortization).
Subscription Asset
The subscription asset is measured at the commencement of the subscription term, which occurs when the initial implementation stage is completed, and Epic California Academy has obtained control of the right to use the underlying IT assets. The subscription asset is recognized and initially measured as follows:
The initial subscription liability amount
+ Payments made to the SBITA vendor at or before commencement of the subscription term
+ Capitalizable implementation costs
– Incentives received from the SBITA vendor at or before commencement of the subscription term
= Subscription Asset amount
The subscription asset should be amortized in a systematic and rational manner over the shorter of the subscription term or the useful life of the underlying IT assets. The amortization of the subscription asset begins at the commencement of the subscription term and is reported as an outflow of resources (e.g., amortization expense), which may be combined with depreciation expense related to other capital assets for financial reporting purposes. The amortization of the subscription asset is calculated using the straight-line method, which results in a constant periodic amortization amount over the subscription term. The periodic amortization amount is calculated as the initial measurement of the subscription asset, less any residual value, divided by the shorter of the subscription term or the useful life of the underlying IT assets. The amount of the subscription asset recognized during the reporting period, the amount of accumulated amortization, and the remaining useful life of the subscription asset should be disclosed in the financial statements.
Reassessment of Subscription Term
Epic California Academy will reassess the subscription term only if one or more of the following occur:
Epic California Academy or the SBITA vendor elects to exercise an option even though it was previously determined that it was reasonably certain that Epic California Academy or the SBITA vendor would not exercise that option.
Epic California Academy or the SBITA vendor elects not to exercise an option even though it was previously determined that it was reasonably certain that Epic California Academy or the SBITA vendor would exercise that option.
An event specified in the SBITA contract that requires an extension or termination of the SBITA takes place.
Impairment
Impairment refers to the decline in value of an asset below its fair value. Under GASB 96, the impairment of a SBITA asset occurs when its carrying amount exceeds its recoverable amount. Epic California Academy will evaluate its SBITA assets at least annually for indications of impairment, such as a significant change in the fair value of SBITA assets or a change in the assets’ intended use. If such indications are present, Epic California Academy will take the following steps:
Identify the assets to be tested for impairment.
Determine, to the extent practicable, the fair value of the assets. If the fair value cannot be readily estimated, the present value of expected future cash flows may be used.
Determine the recoverable amount of the SBITA asset. The recoverable amount is the higher of its fair value less the costs to sell or the asset’s value in use.
Compare the recoverable amount of the asset to its carrying value. If the carrying value exceeds its recoverable amount, the asset is considered impaired.
Determine if the impairment is temporary.
If the decline in value is believed to be temporary, the asset may continue to be held until the value recovers. No further action is required.
If the decline in value is not temporary, adjust the carrying amount of the asset to agree with its fair value.
If an impairment is identified and it is determined to be other than temporary, calculate the impairment loss, and recognize the loss as an expense on the financial statements of the year in which the impairment occurred. Document the method used to estimate the asset’s fair value to support the calculation of the impairment loss.
Other Modifications and Terminations
Modifications or terminations of SBITAs may require the re-measurement of the SBITA asset and liability. If the modification results in the addition of a new SBITA asset, as opposed to an addition to an existing asset, it will be treated as a new SBITA asset.
Account Coding
The California Department of Education has defined the following object code classifications to use in conjunction with GASB 96 accounting entries:
- Subscription Assets – Object 6700
- Proceeds from SBITAs – Object 8974
- Other object codes used in recording the accounting entries required under GASB 96 may include, but are not necessarily limited to, the following:
- Debt Service, Interest – Object 7438
- Other Debt Service, Principal – Object 7439
- Cash in County Treasury – Object 9110
3200: GASB 101 Compensated Absenses
Adopted 2024-07-01
Revised 2024-10-24
Effective Date: July 1, 2024
Background
GASB 101 establishes standards of accounting and financial reporting for (a) compensated absences and (b) associated salary-related payments, including certain defined contribution pensions and defined contribution other post-employment benefits (OPEB). The requirements of this Statement apply to the financial statements of all state and local governments.
Governments often provide their employees with paid leave benefits, such as vacation leave and sick leave. GASB 101 requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means.
The Government Accounting Standards Board (GASB) has issued Statement Number 101 (GASB 101, “the standard”), effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. Earlier application is encouraged.
Purpose
This policy determines the accrual of compensated absences and salary-related payments for Epic California Academy (hereinafter referred to as “Epic California Academy”), provides guidance to Epic California Academy staff about when it is appropriate to accrue compensated absences and related payments, and describes the measurement and accounting treatment of compensated absences and related payments under GASB Statement No. 101.
Definitions
Compensated Absences is leave for which employees may receive one or more (a) cash payments when the leave is used for time off; (b) other cash payments, such as payment for unused leave upon termination of employment; or (c) noncash settlements, such as conversion to defined benefit post-employment benefits. The payment or settlement could occur during employment or upon termination of employment. Compensated absences generally do not have a set payment schedule. Examples of compensated absences include vacation (or annual) leave, sick leave, paid time off (PTO), holidays, family and medical leave, pregnancy disability leave, birthday holidays, bereavement leave, school appearance, and jury/witness duty leave.
Salary-related payments are obligations that Epic California Academy incurs related to providing leave in exchange for services rendered. (The term salary in salary-related payments represents any pay provided to the employee, whether it is a fixed amount or an hourly wage.) Examples of salary-related payments include the employer’s share of Social Security, Medicare taxes, PERS/STRS, Disability, and others.
General Policy
Compensated Absences
GASB 101 requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means.
Leave that has not been used:
the leave is attributable to services already rendered,
the leave accumulates and
the leave is more likely than not* to be used for time off, paid in cash, or settled through noncash means.
*The term more likely than not means a likelihood of more than 50 percent.
A government should evaluate whether the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means by assessing relevant factors, including the following:
The government’s employment policies are related to compensated absences.
Whether leave that has been earned is or will become, eligible for use or payment in the future.
Historical information about the use, payment, or forfeiture of compensated absences.
Information is known to the government that would indicate that historical information may not be representative of future trends or patterns.
A liability for leave described above should be measured using an employee’s pay rate as of the date of the financial statements, except for the following situation:
If some or all of the leave is more likely than not to be paid at a rate different from the employee’s pay rate at the time the payment is made, a government should measure that portion of the liability using that different rate as of the date of the financial statements.
If the leave is not attributable to a specific employee as of the financial statement date (for example, if leave has been donated to a shared employee leave pool), a government should measure the liability using an estimated pay rate representative of the eligible employee population.
If some or all of the leave is more likely than not to be settled through noncash means other than conversion to defined benefit post-employment benefits, a government should measure the liability based on the amount for which it is more likely than not to be settled.
Leave that has been used:
A liability should be reported when leave is used for time off but has not yet been paid in cash or settled through noncash means, including the types of leave like unlimited leave and holiday leave that is taken on a specific date, not at employees’ discretion. That liability, including any applicable salary-related payments, should be measured at the amount of the cash payment or noncash settlement to be made for the use of the leave.
Salary-related payments
GASB 101 requires Epic California Academy to include in the measurement of its liabilities for compensated absences (for both leave that has been used and leave that has not been used) salary-related payments that are directly and incrementally associated with the leave, except for salary-related payments related to defined benefit pensions or defined benefit OPEB.
A salary-related payment may be incrementally associated only with a portion of the recognized leave.
For leave that has not been used, expenses for salary-related payments related to defined contribution pensions or defined contribution OPEB should be recognized when the liability for that leave is recognized and should be reported as pension expense or OPEB expense, as applicable. Those amounts should not be reported as a pension or OPEB liability. For leave that has been used, salary-related payments related to defined contribution pensions or defined contribution OPEB should be included in a pension liability or an OPEB liability in accordance with the requirements of Statements (GASB) 68, 73, or 75, as amended.
Based on historical information and experience, our entity, Epic California Academy, has selected fifty-five percent (55%) of sick leave and salary-related payments to be accrued along with the entire vacation accrual balance and salary-related payments.
The determination of accrual of compensated absences and salary-related payments will be reviewed regularly and adjusted as conditions warrant to ensure compliance with GASB 101 and any subsequent amendments. Epic California Academy’ management shall approve changes to this policy.
Relationship to Postemployment Benefits
The projected effects on an employer’s defined benefit post-employment benefits liability resulting from payment for compensated absences should not be included in the liability for compensated absences.
Exclusions
The proEpic California Academy of GASB Statement 101 do not apply to the following:
Leave that is more likely than not to be settled through conversion to defined benefit post-employment benefits should not be recognized as a liability for compensated absences.
For types of compensated absences that are dependent upon the occurrence of a sporadic event that affects a relatively small proportion of employees in any particular reporting period, Epic California Academy should not recognize a liability until the leave commences. For the purposes of this Statement, family and medical leave, pregnancy disability leave, birthday holidays, and jury/witness duty leave should not be recognized as liabilities until the leave commences. However, sick leave should be recognized in accordance with the proEpic California Academy in compensated absence under leave that has not been used.
For the following types of compensated absences, Epic California Academy should not recognize a liability until the leave is used:
Leave that employees are able to take as needed without specific limits (sometimes referred to as unlimited leave)
Holiday leave that is taken on a specific date, not at the discretion of employees.
Calculating the Liability Related to GASB 101 Compensated Absences
Determine accumulated leave balances.
Calculate leave liability based on employee-calculated hourly rates. (Additional information in General Policy Section)
Add the salary-related payments liability to the leave liability. (e.g., employee taxes and benefits) – see the Definition Section for salary-related payments for additional information.
Adjust total leave liability by projected utilization percentage (if any adjustment applies)
Other Modifications and Terminations
Changes to the measurement of liability in future periods due to a change in pay rate should be recognized during the change.
3210: Federal Grants Funds Policy
Adopted 2024-03-28
Purpose
The Board of Directors for Epic California Academy (“Epic California Academy”) recognizes the charter school’s responsibility to maintain fiscal integrity and transparency in the use of all funds awarded through federal grants. Epic California Academy shall comply with all applicable requirements detailed in any grant agreement with an awarding agency and with the federal Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards specified in 2 CFR 200.0-200.521.
Any goods or services purchased with federal funds shall be reasonable in cost and necessary for the proper and efficient performance or administration of the program. The Superintendent/Executive Director or Designee shall ensure that Epic California Academy’ financial management systems and procedures provide for the following: (2 CFR 200.302)
- Identification in Epic California Academy accounts of each federal award received and expended and the federal program under which it was received.
- Accurate, current, and complete disclosure of the financial and performance results of each federal award or program in accordance with the reporting requirements of 2 CFR 200.327 and 200.328.
- Records and supporting documentation that adequately identify the source and application of funds for federally funded activities, including information pertaining to federal awards, authorizations, obligations, unobligated balances, assets, expenditures, income, and interest.
- Effective controls and accountability for all funds, property, and other assets and assurance that all assets are used solely for authorized purposes.
- Comparison of actual expenditures with budgeted amounts for each federal award.
- Written procedures to implement proEpic California Academy governing payments as specified in 2 CFR 200.305.
- Written procedures for determining the allowability of costs in accordance with 2 CFR 200.400-200.475 and the terms and conditions of the federal grant award.
The Superintendent/Executive Director or Designee shall develop and implement appropriate internal control processes to reasonably assure that transactions are properly executed, recorded, and accounted for so that Epic California Academy can prepare reliable financial statements and federal reports, maintain accountability over assets, and demonstrate compliance with federal laws, regulations, and conditions of the federal award. (2 CFR 200.61, 200.62, 200.303)
Equipment purchased with federal funds shall be properly inventoried and adequately maintained to safeguard against loss, damage, or theft of the property.
All staff involved in the administration or implementation of programs and activities supported by federal funds shall receive information and training on the allowable use of federal funds, purchasing procedures, and reporting processes commensurate with their duties.
Epic California Academy shall submit performance reports to the awarding agency in accordance with the schedule and indicators required for that federal grant by law and the awarding agency. As required, such reports may include a comparison of actual accomplishments to the objectives of the federal award, the relationship between financial data and performance accomplishments, the reasons that established goals were not met if applicable, cost information to demonstrate cost-effective practices, analysis and explanation of any cost overruns or high unit costs, and other relevant information. The final performance report shall be submitted within 90 days after the ending date of the grant. (2 CFR 200.301, 200.328)
3220: Transportation as a Related Service for Students with Disabilities
Adopted 2024-06-27
According to state and federal laws, charter schools are not mandated to provide transportation to general education students. However, in individualized circumstances, an individualized education program (“IEP”) team may determine that a student with a disability requires transportation as a related service on their IEP to benefit from special education.
The Superintendent/Executive Director or Designee shall establish criteria and procedures for determining the most appropriate mode of transportation for an individual student with disabilities based on the student’s identified needs and the IEP team’s determination if the student is eligible to receive transportation as a special education-related service. This shall include, but not be limited to: (1) the severity of the student’s disability, (2) consideration of the effect that the location of placement will have on the length of time that a student has to and from school each day, and (3) access to offer of free appropriate public education (“FAPE”) and special education related services. In addition, the placement and transportation criteria shall be reviewed at least annually to determine suitability.
The Superintendent/Executive Director or Designee shall ensure that appropriate transportation services are provided for students with disabilities as specified in their IEP or 504 accommodations plan. Considering the IEP team’s identified specialized transportation needs of a pupil, transportation options may include, but are not limited to: walking, utilizing public transportation, reimbursing a parent/guardian driving with the individual’s voluntary participation, or other mode as determined in the IEP or 504 accommodations plan.
The Superintendent/Executive Director or Designee shall ensure that students who are eligible for transportation services in the IEP or 504 accommodations plan are transported by an individual who has a valid California driver’s license, minimum liability insurance in accordance with Epic California Academy’ policies and procedures, and has completed Epic California Academy’ specialized transportation agreement.
The Superintendent/Executive Director or Designee shall ensure that in circumstances where the IEP or 504 accommodations plan determines reimbursement will be provided to a parent/guardian, the parent/guardian is reimbursed at the California government reimbursement rate for short-term travel-personal vehicle mileage.
The Superintendent/Executive Director or Designee shall ensure that students who are eligible for transportation services in the IEP or 504 accommodations plan and suspended from transportation receive an alternative form of transportation at no cost to the pupil or parent/guardian.
3230: Time and Effort Reporting Policy
Adopted 2024-10-24
The Board of Directors (“Board”) adopts this time and effort reporting policy in compliance with applicable federal and state law.
Employees who receive compensation from federal programs or state categorical programs must complete supporting documentation confirming that the activities they performed and for which they were compensated were indeed for the program(s) that funded those activities.
The required supporting documentation will vary depending upon whether the employee is working under a single cost objective or multiple cost objectives. A “cost objective” is a set of work activities allowable under the terms and conditions of a particular funding source. An employee would work under a single cost objective if s/he works entirely on activities funded by a single program; or if s/he works entirely on activities that are funded by a mixture of programs but where the activities could be entirely funded by any one of those programs. An employee would work under multiple cost objectives if s/he works on a variety of activities that are supported by a mixture of programs, and the activities are diverse such that they could not be funded entirely by any single one of those programs.
Employees shall complete one of two types of documentation:
Semiannual Certification: All employees who are paid completely from one restricted source of federal or state categorical revenue, or otherwise perform one cost objective, must complete a semiannual certification form twice a year for the previous six-month period (July-December, January-June).
Monthly Personnel Activity Report: Employees working on multiple cost objectives must complete a Personnel Activity Report (PAR) for each month that coincides with one or more pay periods.
Documentation must be an after-the-fact certification of actual time worked, not anticipated or budgeted time. Employees are expected to diligently track and record their time worked to specific activities to ensure that time and effort documentation is accurate.
The Chief Operations Officer or designee shall provide training to employees in determining which documentation they are required to provide and how to complete this documentation.
Each employee’s supervisor shall review the semiannual certifications and/or monthly personnel activity reports. If the actual hours worked according to this documentation are different than the employee’s hours worked as entered into the regular timekeeping system, the supervisor should determine which version is accurate, such as through discussion with the employee, to ensure that the time and effort documentation aligns with clocked hours. Similarly, if the actual hours worked according to this documentation are different than the employee’s budgeted time, the supervisor should consult with the Chief Operations Officer and HR Department to enter adjustments into the payroll system so that actual time worked is reflected and charged to the program.
3530: Risk Management Insurance
Adopted 2018-02-15
Revised 2024-01-25
The Board of Directors (“Board”) strongly supports a risk management program that protects Epic California Academy’ resources and promotes the safety of students, staff, and the public.
The Superintendent/Executive Director or Designee shall establish a risk management program that uses effective safety and loss control practices. Epic California Academy shall strive to keep its liability at a minimum and its insurance premiums as low as possible while maintaining adequate protection. To determine the most economical means of ensuring Epic California Academy Is consistent with required services, the Superintendent/Executive Director or Designee shall annually review Epic California Academy’ options for obtaining coverage, including qualified insurance agents, a joint powers agency, self-insurance, or a combination of these means.
The Board reserves the right to remove an insurance agent-of-record or a participating agent whenever, in the judgment of the Board, such action becomes desirable for the best interests of Epic California Academy.
To attempt to minimize Epic California Academy’ exposure to liability, the Board shall adopt clear policies related to discrimination, harassment, safety procedures, and the timely handling of claims. The Superintendent/Executive Director or Designee shall ensure that these policies and related procedures are enforced fairly and consistently.
The Superintendent/Executive Director or Designee shall report to the Board once a year on Epic California Academy’s risk management activities.