Accreditation Standard #6.5School Budgets and Raises Sufficient Financial Resources

The school budgets and raises sufficient financial resources to enable the ongoing implementation of the mission, vision and purpose of the school, and its improvement plan. [Note: While specific items from time to time will have to be delayed or modified due to the absence of sufficient resources, normally the budget of the school should reflect the importance and priority of the School Effectiveness and Improvement Plan (SESIP) by assigning sufficient funds to achieve its accomplishment.]

Explanatory Standards

Fundraising and Resource Development Documented
The school’s fundraising and resource development activities are documented and handled in a legal, ethical, and professional manner.
ArtifactEvidence of specific fundraising efforts or support
School Liability Insurance
The school is covered by liability insurance.
1. Premises and Vehicular Liability
  Premises and vehicular liability insurance provides $1,000,000 coverage as a minimum and, based on student enrollment, provides a minimum amount of umbrella coverage as follows:
  - 1–200: $2,000,000
  - 201–500: $3,000,000
  - 501–up: $5,000,000
  ArtifactsEvidence of adequate vehicular liability insurance based on student enrollment Evidence of premises insurance based on student enrollment
2. Property Insurance
  Sufficient property insurance to cover the value of the school’s existing contents and structure(s), which may be provided through a commercial policy or through self-insurance. Documentation of coverage is maintained, either through a commercial policy or an ongoing line item in the operating budget of the school.
  ArtifactEvidence of sufficient property insurance
School Compensation Policies
The school’s compensation policies (including salary schedules and other benefits) are available to and understood by the employees.
ArtifactCopy of school salary schedule and other benefits
Participation in Federal Social Security Program
The school must participate in the Federal Social Security Program.
ArtifactEvidence of participation in Federal Social Security Program
Sound Fiscal Management
The school avoids situations considered by Christian Schools of Florida to be violations of sound fiscal management:
ArtifactCurrent Year Operating Budget *
1. Excessive Liabilities
  Current liabilities in excess of current assets
2. Absence of Debt Repayment Plan
  Absence of a definite plan for repayment of debt, including the payment of the principal, as well as the interest
3. Inability to Repay Debt
  A debt in such an amount that the school does not have the ability to repay.
4. Excessive Balloon
  A substantial portion of overall debt with provisions for a “balloon” repayment
5. Payable On-Demand Debt
  A debt that is payable on demand to the lender
6. Delinquent Contracted Debt
  Any significant delinquent contracted debt that is owed to a staff member, officer, or trustee of the school, as well as late payments of salaries to employees and/or payments to vendors
7. Consecutive Yearly Deficits
  Three consecutive years of operation at a deficit (greater than 3% of budget)
8. Deficit without Plan to Reverse
  A deficit evidenced by the end of the year financial statements without a plan to reverse the trend or eliminate the deficit
9. Enrollment Downtrend
  Any significant downtrend in enrollment without justifiable reasons