Charter Schools

Charter schools are publicly funded educational institutions that operate independently of traditional school district systems under a charter or performance contract. These schools are established to offer innovative educational approaches and are granted greater flexibility in areas such as curriculum design, teaching methods, and administrative practices. Charter schools are accountable to their charter authorizers for meeting specific academic and operational performance standards. They receive funding primarily from state and local sources and often have the autonomy to develop unique programs and educational models to better meet the needs of their students.

Thomas and Company CPA PA can provide audit services for charter school entities through a tailored approach that addresses their unique operational and financial characteristics. Here’s an overview of how the firm might conduct these services:

1. Initial Consultation: The firm would begin by meeting with the charter school’s management to understand its operational structure, financial processes, and specific regulatory requirements. This includes reviewing the school’s charter agreement and compliance obligations.
2. Audit Planning: Thomas and Company CPA PA would develop an audit plan that reflects the charter school’s specific needs. This involves identifying risk areas, setting materiality thresholds, and understanding compliance with relevant regulations, such as those from the Governmental Accounting Standards Board (GASB) or other applicable standards.
3. Internal Controls Assessment: The audit team would evaluate the effectiveness of the charter school’s internal controls, including those related to financial reporting, student enrollment, grant management, and compliance with state and federal regulations.
4. Fieldwork: During the audit, the firm would examine financial records, test transactions, and review documentation related to revenue sources, expenditures, and compliance with grant conditions. They would focus on areas such as public funding, donations, and expenditures related to educational programs.
5. Compliance Testing: Thomas and Company CPA PA would ensure the charter school complies with legal and regulatory requirements, including those related to public funding, reporting standards, and operational performance as outlined in the charter agreement.
6. Reporting: After completing the audit, the firm would prepare a comprehensive audit report. This report would include their opinion on the fairness of the financial statements, highlight any significant findings or issues, and provide recommendations for improving financial management and compliance.
7. Advisory Services: The firm might also offer advisory services, including guidance on financial management practices, compliance with regulatory changes, and strategic planning to support the charter school’s mission and operations.

By following this approach, Thomas and Company CPA PA helps charter schools ensure transparency, accountability, and effective management of their resources, supporting their educational goals and compliance with regulatory requirements.

Thomas and Company CPA PA provides specialized tax services for charter schools to ensure compliance with tax regulations and optimize their financial operations. Their services include preparing and filing Form 990 or other required tax documents, advising on the tax implications of grants and donations, and helping manage financial reporting for public funding. The firm also offers guidance on maintaining tax-exempt status and navigating state and federal tax requirements specific to educational institutions. By leveraging their expertise, Thomas and Company CPA PA supports charter schools in managing their finances effectively while focusing on their educational goals.