FCMAT
Union Hill School District Report
child development department and programs review
Read the report at Union Hill School District ↗
Union Hill School District
Child Development Program Review
February 15, 2011
Joel D. Montero
Chief Executive Officer
Fiscal crisis & ManageMent assistance teaM
February 15, 2011
Susan Barry, Superintendent
Union Hill School District
10879 Bartlett Drive
Grass Valley, CA 95945
Dear Superintendent Barry,
In September 2010, the Union Hill School District and the Fiscal Crisis and Management Assistance Team
(FCMAT) entered into an agreement for a child development program review. Specifically, the agreement
stated that FCMAT would perform the following:
1. Analyze the organizational structure of the child development department,
including the number of programs, size and complexity of programs, and the
administrative, instructional and support personnel required for an efficient opera-
tional program.
2. Assess the alignment of the district’s child development programs, including;
infants, toddlers, preschool, before and after-school care.
3. Evaluate the revenue sources of the various child development programs and make
recommendations to enhance revenues or provide alternative funding sources.
4. Assess the expenditure patterns of the various child development programs and
make recommendations to reduce expenses.
5. Review the child development program’s multiyear fiscal solvency plan and recom-
mend any changes necessary to improve the plan.
6. Evaluate workflow processes and communication efficiencies between the child
development program, business and personnel departments.
7. Analyze the hours of site operation and the employment calendars of site staff,
including the year-round staff, and make recommendations to reduce positions, if
any.
8. Review the job descriptions of the coordinator, administrator and head teacher to
assess leadership requirements of the program’s organizational structure.
FCMAT
Joel D. Montero, Chief Executive Officer
. .
1300 17th Street - CITY CENTRE, Bakersfield, CA 93
.
301-4533 Telephone 661-6
.
36-4611 Fax 661-63
.
6-4647
422 Petaluma Blvd North, Suite. C, Petaluma, CA 94952 Telephone: 707-775-2850 Fax: 707-775-2854 www.fcmat.org
Administrative Agent: Christine L. Frazier - Office of Kern County Superintendent of Schools
This final report contains the study team’s findings and recommendations in the above areas of
review. We appreciate the opportunity to serve the Union Hill School District, and extend our
thanks to all the staff for their assistance during fieldwork.
Sincerely,
Joel D. Montero
Chief Executive Officer
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TABLE OF CONTENTS
Table of contents
About FCMAT .........................................................................................iii
Introduction ............................................................................................1
Study Guidelines ............................................................................................2
Study Team.......................................................................................................2
Executive Summary ........................................................................3
Background ......................................................................................................4
Findings and Recommendations .....................................................5
Organizational Structure .............................................................................5
Program Alignment .....................................................................................13
Revenue Sources ..........................................................................................15
Expenditure Trends .....................................................................................21
Multiyear Fiscal Solvency ..........................................................................25
Workflow and Communication ...............................................................27
Hours of Operation and Employment Calendars ..............................29
Job Descriptions ...........................................................................................31
Appendices ............................................................................................33
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ABOUT FCMAT
About FCMAT
FCMAT’s primary mission is to assist California’s local K-14 educational agencies to identify,
prevent, and resolve financial and data management challenges. FCMAT provides fiscal and
data management assistance, professional development training, product development and other
related school business and data services. FCMAT’s fiscal and management assistance services
are used not just to help avert fiscal crisis, but to promote sound financial practices and efficient
operations. FCMAT’s data management services are used to help local educational agencies
(LEAs) meet state reporting responsibilities, improve data quality, and share information.
FCMAT may be requested to provide fiscal crisis or management assistance by a school district,
charter school, community college, county office of education, the state Superintendent of Public
Instruction, or the Legislature.
When a request or assignment is received, FCMAT assembles a study team that works closely
with the local education agency to define the scope of work, conduct on-site fieldwork and
provide a written report with findings and recommendations to help resolve issues, overcome
challenges and plan for the future.
Study Agreements by Fiscal Year
90
80
70
60
50
40
30
20
10
0
92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11
Projected
FCMAT also develops and provides numerous publications, software tools, workshops and
professional development opportunities to help local educational agencies operate more effec-
tively and fulfill their fiscal oversight and data management responsibilities. The California
School Information Services (CSIS) arm of FCMAT assists the California Department of
Education with the implementation of the California Longitudinal Pupil Achievement Data
System (CALPADS) and also maintains DataGate, the FCMAT/CSIS software LEAs use for
CSIS services. FCMAT was created by Assembly Bill 1200 in 1992 to assist LEAs to meet and
sustain their financial obligations. Assembly Bill 107 in 1997 charged FCMAT with responsi-
bility for CSIS and its statewide data management work. Assembly Bill 1115 in 1999 codified
CSIS’ mission.
AB 1200 is also a statewide plan for county office of education and school districts to work
together locally to improve fiscal procedures and accountability standards. Assembly Bill 2756
(2004) provides specific responsibilities to FCMAT with regard to districts that have received
emergency state loans.
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ABOUT FCMAT
In January 2006, SB 430 (charter schools) and AB 1366 (community colleges) became law and
expanded FCMAT’s services to those types of LEAs.
Since 1992, FCMAT has been engaged to perform nearly 850 reviews for LEAs, including school
districts, county offices of education, charter schools and community colleges. The Kern County
Superintendent of Schools is the administrative agent for FCMAT. The team is led by Joel D.
Montero, Chief Executive Officer, with funding derived through appropriations in the state
budget and a modest fee schedule for charges to requesting agencies.
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INTRODUCTION
Introduction
The Union Hill School District was established in 1868 and consists of a traditional K-8 school,
a home-schooling charter school and the Bearcat Discovery Center, which offers a preschool and
infant through eighth-grade child care. The district’s student enrollment is approximately 800. It
is located in Grass Valley, California, in Nevada County.
In August 2010 the district requested FCMAT to review its child development programs and
services. The study agreement specifies that FCMAT will perform the following:
1. Analyze the organizational structure of the child development department,
including the number of programs, size and complexity of programs, and the
administrative, instructional and support personnel required for an efficient
operational program.
2. Assess the alignment of the district’s child development programs, including;
infants, toddlers, preschool, before and after-school care.
3. Evaluate the revenue sources of the various child development programs and
make recommendations to enhance revenues or provide alternative funding
sources.
4. Assess the expenditure patterns of the various child development programs
and make recommendations to reduce expenses.
5. Review the child development program’s multiyear fiscal solvency plan and
recommend any changes necessary to improve the plan.
6. Evaluate workflow processes and communication efficiencies between the
child development program, business and personnel departments.
7. Analyze the hours of site operation and the employment calendars of site
staff, including the year-round staff, and make recommendations to reduce
positions, if any.
8. Review the job descriptions of the coordinator, administrator and head
teacher to assess leadership requirements of the program’s organizational
structure.
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INTRODUCTION
Study Guidelines
FCMAT visited the district on December 7 and 8 to conduct interviews, collect data and review
documents. This report is the result of those activities and is divided into the following sections:
• Executive Summary
• Background
• Organizational Structure
• Program Alignment
• Revenue Sources
• Expenditure Trends
• Multiyear Fiscal Solvency
• Appendices
Study Team
The study team was composed of the following members:
John F. Von Flue Cynthia Ruiz*
FCMAT Fiscal Intervention Specialist Director, Early Childhood Education
Bakersfield, California Services
Kern County Superintendent
Laura Haywood of Schools Office
FCMAT Public Information Specialist Bakersfield, California
Bakersfield, California
*As a member of this study team, this consultant was not representing her employer but was
working solely as an independent contractor for FCMAT.
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EXECUTIVE SUMMARY
Executive Summary
The Union Hill School District provides preschool and child care services through its Bearcat
Discovery Center. These programs have grown to offer needed care services and accommodations
for many families of the area, reflecting the district’s commitment to provide on-site child care.
The state preschool and child care contracts are governed by CDE funding terms and conditions.
The Child Development Attendance and Fiscal Reporting and Reimbursement Procedures
manual, commonly known as the Greenbook, provides essential guidance for meeting compli-
ance requirements, effective program management, and receiving maximum reimbursements.
Using the guidance and standards provided in the Greenbook as well as the funding terms and
conditions, FCMAT reviewed the Bearcat Discovery Center to evaluate program compliance,
optimization, and alignment, as well as revenues and expenditures.
Staffing and the operational structure of the center involve multiple assignments for some staff,
and may not meet contract requirements. Adjustments should be made to streamline staffing
and meet the ratios required to comply with program contracts. Enrollment priorities should be
established for subsidized programs as required by contract, and unsubsidized (fee-based) services
should be revamped to eliminate program encroachment on the district’s unrestricted fund.
The child development center is not completing much of the record keeping and reporting
required for program compliance. Children’s files contained deficiencies related to admission
and eligibility determination. These noncompliance findings are similar to those identified in the
Coordinated Compliance Review conducted in 2005.
Commingling of the subsidized and unsubsidized programs creates unnecessary complexities in
the programs offered by the center. FCMAT’s recommendations include separating the programs
and reviewing services, program hours, and child needs to simplify center staffing and cost
tracking.
Maximum reimbursable amounts can be obtained from contracts by ensuring that the district
receives the standard reimbursement rate for fee-based programs. In addition, program revenues
and budgeting for fee-based programs should be reviewed regularly. Rate schedules should be
adjusted to align with program costs and enrollment priority should be given to families who
commit to regular attendance and keep tuition payments current. A waiting list should be estab-
lished for families who desire to receive services should program vacancies become available.
The child development fund trend analysis shows deficit spending in the program for the last
two years and current fiscal year, 2010-11. The district should improve awareness and control of
expenditures by better tracking expenses by program, monitoring supplemental compensation
and extra staff hours, and including additional facility expenses related to the Bearcat Discovery
Center.
Job descriptions for child development positions contain inconsistencies. Job descriptions for
every position should be current and accurately reflect essential duties and requirements to clearly
establish authority, responsibility, and expectations.
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BACKGROUND
Background
The Union Hill School District provides preschool and child care programs for children through
the Bearcat Discovery Center. Board Policy 5148 recognizes child care and supervision as a neces-
sity for many families and commits to providing on-site child care.
The child development programs began as fee-based programs and subsequently added state
subsidy contracts. The program has continued to grow, providing additional services and accom-
modating the needs and requests of families in the community and beyond. The Union Hill
School District is considered to have the most comprehensive child services in Nevada County as
it is the only district that provides education and child care programs from infant to 8th grade.
The district believes these services draw families to the district as demonstrated by high numbers
of incoming interdistrict transfers.
Because of the governor’s proposed reduction in child care subsidies for fiscal year 2010-11 in
addition to deficit expenditures in the child care fund for 2009-10, the district took action to
reduce program expenses. This included the reduction or elimination of several staff positions
effective July 1, 2010. The district’s adopted 2010-11 budget reflects a reduction in revenue of
27.7% over prior year due to the subsidy decline and a corresponding reduction of expenses
in the amount of $314,226.88 (30.9%) to balance the budget. In addition, the district began
providing tuition-based child care services only. To assist families with the transition, the fees for
these services included discounts of 10% to 50% for qualified families. In a September letter,
the district informed parents that child care services would be restricted to families receiving
CalWORKS Stages 1 and 2 funding, children receiving preschool funds, and tuition-based
services.
Subsequently, with the passing of the 2010-11 budget, the governor’s proposal to eliminate
CalWORKS-related child care programs was overturned by the Legislature. The district’s first
interim budget reflects the subsequent increase in state revenue and a reduction in tuition
collections. The district also budgeted an increase in expenses over the July 1 budget of just over
$63,000. These increases were mostly for classified salaries and supply budget line items. The
district did not reinstate the support service positions reduced in the July 1 cuts.
The proposed and actual budget cuts, reduction of support staff, and deficit spending in the child
development fund over the last two fiscal years have left the district concerned about how to
operate these programs most efficiently while maintaining legal standards and compliance. The
district’s goal as stated by board members and the superintendent is to provide quality child care
and compliant programs that serve the families and children without incurring encroachment.
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ORGANIZATIONAL STRUCTURE
Findings and Recommendations
Organizational Structure
The Union Hill School District operates preschool and child care programs through its Bearcat
Discovery Center. The director of child development programs, under the direction of the super-
intendent, provides leadership and supervision to the center and oversees both the preschool and
child care programs. The preschool is staffed with three teachers, six assistants, and an aide for a
total of 8.044 full-time equivalents (FTE). The child care program is staffed with four instruc-
tors, eight assistants, and one aide for a total FTE of 7.594.
The district’s child development programs are funded by two California Department of
Education (CDE) contracts, a contract with Sierra Nevada Children’s Service (SNCS), and
tuition-based child care and preschool programs for infants, toddlers, preschool and school-age
children.
Enrollment numbers for all programs is maintained at approximately 300 children throughout
the year.
Total enrollment is sufficient to easily meet child care center (CCTR) and California State
Preschool Program (CSPP) contracts and receive maximum contracted reimbursement. However,
the current structure of the program adds unnecessary complexity. The increased difficulties in
managing the program stem from inconsistent enrollment practices, the lack of certifying fami-
lies prior to enrollment, and improper identification and/or placement in the program that will
best generate funding.
Contract Compliance Standards
The Child Development Fiscal Services (CDFS) department of the CDE publishes a Child
Development Attendance and Fiscal Reporting and Reimbursement Procedures manual,
commonly known as the Greenbook. This book, available by download from the Internet, serves
as a guide to program compliance and procedures.
References from the Greenbook regarding compliance standards applicable to Union Hill
contracts reviewed in this study are included in the Appendix section of this report.
Staff Scheduling
Current staff scheduling creates confusion, potential accountability issues, and inefficiencies since
many staff work in multiple locations and under various contracts. Employees are scheduled
with multiple programs and children to fulfill their hours. Inefficiencies occur due to transition
between locations and responsibilities. These schedules are also difficult for substitute staff to
follow.
The following are examples of current scheduling taken from the Bearcat Discovery staffing
schedule:
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ORGANIZATIONAL STRUCTURE
Employee A: 10 month employee, 7.25 Preschool & .75 AM Care
7:30-8:15 AM Care
8:10 At curb
8:15-11:15 Dancing Dolphins
11:15-3:30 Non Nappers
Employee B: 12 month employee, 1.5 AM Care and 4.25 Preschool
6:45-8:15 AM Care
8:15-11:15 Fluterpups
11:15-12:30 Non Nappers
Employee C: 12 month employee, 2.5 hours PM Care, 5.5 Preschool
8:15-11:15 Dancing Dolphins
11:45-12:30 Sleepers
12:30-1:00 Break
2:30-4:45 One and Up Care
As evident in the examples above, employees are assigned to several programs and classrooms
through the course of their day. Each employee schedule is unique and appears adjusted to fit the
hours of employment. Rather, the employee schedules should be adjusted to meet the needs of
the program.
Classroom Staffing
Important considerations for determining appropriate staffing levels include:
• Adult to child ratios as required according to age group
• Fulfillment of CSPP and CCTR contracts
• Verification that each subsidized family meets the criteria for eligibility and need
• Number of families who demonstrate a need for services
• Facility license capacities
FCMAT calculated the approximate staffing necessary to meet current CCTR and CSPP
contracts considering licensing capacity and maximum reimbursable amount (MRA) to be as
follows:
• 4 full time teachers: Infant, Toddlers, CSPP full day, and half day
• 3 full time aides (1 per class except for ½ day preschool)
• 8 part time aides (1 per each ½ day preschool class)
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ORGANIZATIONAL STRUCTURE
CSPP
Best practice and recommended staffing for the CSPP program is detailed below.
Operations structure:
• 1 AM class of 20 children all attending 8:15 to 11:15 (180 days)
• 1 PM class of 20 children all attending 12:15 to 3:15 (180 days)
• 1 All Day class of 20 children full day CSPP (7:30 -5:30) (247 days)
The above combination would also allow the agency to provide preschool services for up to seven
tuition-based families because the current facility license has capacity for 47 preschool age chil-
dren, as long as the program does not exceed 24 children in any one of the preschool classrooms.
Staffing recommendations for the above classes are as follows:
• AM Class – 1 teacher, 1 part time aide (3.5 hour) and 1 parent volunteer or substitute
aide to meet the adult to child ratio
• PM Class (same teacher as AM) – 1 part time aide (3.5 hours) and 1 parent volunteer or
substitute aide to meet adult to child ratio
• Full Day Class (no parent volunteers allowed to meet ratio due to program need criteria)
– 1 teacher, 1 full time aide with permit and 3 part time aides to help cover full day.
Therefore, the total staffing for CSPP is:
• 1 teacher (186 days) assigned to teach AM and PM class (3 hours each)
• 1 teacher (230 days) full day
• 1 full time aide with permit (230 days)
• 2 part time aides, 3.5 hours (182 days/ half day preschool)
• 3 part time aides, 3.5 hours (247 days/ full day preschool)
CCTR
Following the best practice and recommended staffing for the CCTR program, the operations
structure could be:
• 1 infant class (6 weeks to 24 months) with 6 infants
• 1 toddler class (18 months to 30 months) with 8 toddlers
• Neither the infant class nor the toddler class is to exceed 12 children due to licensing
capacity.
The staffing requirement for the above classes is:
• Ratio for infants under Title 5 is 1 adult per 3 babies; 1 teacher not to exceed 18 babies.
• Ratio for toddlers under Title 5 is 1 adult per 4 toddlers; 1 teacher not to exceed 16
toddlers.
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ORGANIZATIONAL STRUCTURE
The above combination would also allow the agency to provide infant and toddler care for up to
10 tuition-based families since the program only needs 14 full time infants and toddlers to earn
the full CCTR contract.
The facility license in these two age groups combined allows for a total of 24 children; 12 per
each group.
The total staffing needed for the CCTR program is:
• Infant: 1 full time teacher, 1 full time aide, 1 part time aide
• Toddler: 1 full time teacher, 1 full time aide, 1 part time aide
The SNCS after-school subcontract for CCTR would need 1 part-time teacher and 1-2 part-time
aides depending on enrollment. The maximum ratio of children to adults is 14:1, with the total
not to exceed 28 children on any day.
Support Staff
In response to the Governor’s May revise that threatened deep revenue cuts to state contract
funding, the district made severe staff reductions. The staff reductions enacted for 2010-11
included the following:
Position Number of positions affected Hours reduced
Child Care Assistant 11 2.5 to 5.5 hours/day each
Assistant Director 1 4 hours/day, 10 month
Admissions / Accounting Tech 1 8 hours/day, 12 month
Health Aide / Receptionist 1 5.75 hours/day, 12 month
Preschool Teacher 1 5.75 hours/day, 10 month
3 hours/day, 12 month
Instructor 2
5.75 hours/day, 12 month
Assistant 7 Total reduction of 12.75 hours/day
With the staff reductions, the director of child development programs is now required to perform
the duties previously provided by the assistant director, admissions/accounting tech, and health
aide/receptionist.
As a result, the duties and responsibilities newly assumed by the director for 2010-11 included:
• Unassisted oversight of the child development programs and staff
• Initial contact for public, parents, staff and children
• Answering calls and inquiries of the Bearcat center
• Clerical and accounting duties related to the various programs
• Student absence and tardy logs
• Student attendance accounting
• Supply maintenance and ordering
• Campus visitor controls
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ORGANIZATIONAL STRUCTURE
• Child enrollment and eligibility assessment
• Child records and filing system
• Tuition billing, collection, and reconciliation
• Maintain fixed asset records
• Calling substitutes and/or adjusting staff schedules to ensure proper adult/child ratios
The amount of paperwork for these programs is extensive and typically warrants support staff for
administrative and clerical support. In addition, it is essential for support staff and administration
(director) to possess knowledge pertaining to the regulations and requirements of CDE contracts
and the Community Care Licensing Division.
Program Records
FCMAT sampled Bearcat Discovery Center children’s file folders for proper enrollment and eligi-
bility requirements. The findings of record keeping were of great concern because there is little
structure or accountability in the admission and eligibility determination process.
FCMAT observed the following deficiencies:
• Income Sheet not signed by parent
• CDFS 9600A not signed by parent
• No calculation tape on income form
• Notice of Action missing parent’s initials
• Father is on child’s birth certificate but his information not in file; neither is single-parent
status
• A file that contained a self-declaration of income for various work hours and no contract
hours of care were documented
• A file with 6 in family with a monthly income of $5751.89 has no fee written on Notice
of Action
Compliance Review
A Coordinated Compliance Review (CCR) conducted in May 2005 listed a total of 17 non-
compliant items; six were found in child development, six in general child care and five in preschool.
FCMAT’s findings of noncompliance items in this study are similar to the findings in May 2005.
Components that are key to maintaining compliance in the CCTR and SNCS contracts include:
• Family data files that contain documentation for eligibility and need
• CDFS 9500 attendance and fiscal reports and a Notice of Action Recipient of Services
with fees and contract hours
• Accurate daily sign-in sheets
• CDFS 9400 monthly attendance with documented excused and unexcused absences
• Tracking records for both certified (subsidized) and noncertified (nonsubsidized) children
• Staffing ratio must meet attendance numbers, not enrollment
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ORGANIZATIONAL STRUCTURE
The CCR found the following noncompliance issues:
• Notice of Action is not always complete, accurate or timely
• Eligibility of families based on income is not always documented
• Waiting list procedure for enrollment is not followed
• Basic data file for families is not always complete, accurate or timely
• No system is established to track unexcused absences, Best Interest of the Child (BIC)
days, attendance sheets
• Some families in attendance are not eligible
FCMAT observed sign-in sheets where white correction fluid was used, and parent signature with
times in and out written in advance. Sign in/out sheets for preschool were not signed by parents
because students were taken out to parents for curbside pickup.
The CCR did commend the Union Hill School District for exceeding the CDE requirements in
providing infant to eighth grade services. The commendations were, in part, due to the district
providing an additional 30 minutes of instruction per day to the early care and education
program. However, the additional time is not required and causes unnecessary fiscal strain on the
child development budget. This issue will be reflected in the Hours of Operation section of this
report.
The CDE requires contract holders to perform annual self-review. The self-review performed on
May 21, 2009 did not identify any noncompliance issues. These results are much different from
the findings in the 2005 CCR and the current FCMAT study, which raises concerns regarding
the level of understanding the director may have of the programs’ compliance requirements.
As a result of these issues, FCMAT strongly recommends that the director and support staff
attend training on child development programs and compliance requirements. Training should
also include how to accurately complete reports, especially for attendance and expenditures
claims. In addition, it would be beneficial for staff to attend a CDE review for income and eligi-
bility enrollment requirements.
Recommendations
The district should:
1. Increase familiarity with the Child Development Attendance and Fiscal
Reporting and Reimbursement Procedures manual, commonly referred to as
the Greenbook.
2. Annually evaluate the CSPP and CCTR based contracts to identify
maximum reimbursable amount and funding terms and conditions, and then
develop and implement a program plan including number of classes, hours of
service, calendar, and staffing to meet the requirements.
3. Routinely review progress toward fulfillment of contracts, evaluate enrollment
and staffing, and make necessary adjustments to meet contract goals and
MRA.
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ORGANIZATIONAL STRUCTURE
4. Review child file compliance requirements. Implement procedures and
accountability measures necessary to ensure file and records system is main-
tained, student attendance accounting is complete, and timely claim and
tuition billing is performed.
5. Review support staffing needed to provide administrative and clerical duties
for the Child Development Center. Add staff as necessary to deliver essential
services and maintain compliance.
6. Ensure the director and support staffs attend training on child development
programs and compliance requirements, attendance and expenditure claim
reporting, and income and enrollment eligibility.
7. Work closely with the CDE Child Development consultant who can assist
with program compliance and meeting the contracts MRA.
8. Implement sign-in sheets based on a daily roster (current roster is organized
by student) to increase staff awareness of scheduled daily attendance and
visibility of compliance for parent sign in/out.
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PROGRAM ALIGNMENT
Program Alignment
The district’s child development program consists of two CDE contracts, a local CCTR based
contract with Sierra Nevada Children’s Services (SNCS), and district-controlled, tuition-based
services.
The CDE contracts with Union Hill are easily manageable. Total enrollment to meet the CCTR
contract is approximately 14 infants and toddlers. The CSPP contact would be met with an
enrollment of approximately 60 preschool age children.
The district maintains facility licenses to serve 12 students in the infant center and 59 students in
the preschool program. The infant center can serve children 0 to 24 months with no more than
6 infants under the age of 12 months present at one time. The day care center can serve up to 47
children from age 30 months to entry into kindergarten and up to 12 toddlers from age 18 to 30
months.
The program maintains an enrollment of nearly 300 children. Enrollment is not regulated by
need or attendance commitment. Most of these children listed in the tuition based program are
infrequent attendees and make no commitment to regular year-round attendance. Enrollment
rosters should not be maintained beyond numbers needed to fulfill contracts and load classes to
license capacity.
The Bearcat Discovery Center commingles all contract programs, fee-based programs, staff, and
students. This arrangement makes staff scheduling difficult and complicates contract claims and
tuition reconciliation. It appears that the program is managed solely to accommodate requests
for services and utilization of staff. Rather, the program should be managed based on providing
services within program funding limitations. By prioritizing the fulfillment of the CDE contracts
and then allowing fee-based family contracts to the extent of commitment and need, the align-
ment of the Bearcat Discovery Center programs can be easily managed.
Recommendations
The district should:
1. Separate contracts and programs to simplify staffing and cost tracking.
2. Prioritize enrollment to fulfill CDE contracts.
3. Prioritize services in tuition-based programs to families in most need of
regular and long term services.
4. Review services, program hours, and child needs and impose enrollment
limitations that align with contracts and resources.
5. Establish a waiting list for families that the program is unable to serve due to
resource limitations.
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REVENUE SOURCES
Revenue Sources
The district’s child development program received $972,809.17 in revenue for the 2009-10 fiscal
year. Of this amount, $400,023 (approximately 41%) was received from state subsidy contracts
and $571,525 (approximately 59%) was received from local revenue sources, which include
local contracts and fees. For the current fiscal year, the district has budgeted total revenues at
$756,591, with about 58% ($437,865) from state contracts and 40% ($303,281) from local
sources.
The contracts and rates in effect for the child development program for the 2010-11 fiscal year
are detailed below.
Subsidized Programs
The CDE contracts are for California State Preschool Program (CSPP) and General Child Care
(CCTR) and are reimbursed at a rate of $34.38 per child per day of full-time enrollment. The
district’s contract for services with Sierra Nevada Children’s Service (SNCS) is funded through
a CCTR contract with the CDE. The child care services are provided a reimbursement rate of
$29.22 per child per day of full-time enrollment.
Maximum Minimum child Minimum SACS
Contract
Program Type reimbursable days of days of Resource/
number
amount (MRA) enrollment operation Object
CCTR-0182 3,451
General Child Care $118,647 247 6105 / 8590
2010-11
CCAP-0061
Infant Toddler $131 n/a n/a 5037 / 8290
2010-11
CSPP-0338
State Preschool $313,810 9,128 247 6105 / 8590
2010-11
CRPS-9081 6145 / 8590
Facilities Renovation $17,663 n/a n/a
2009-12 5037 / 8290
CRPM-8089 n/a
Facilities Renovation $12,653 n/a 5035 / 8290
2008-12
Sierra Nevada
Subcontract
Children’s Services
2010-11 $97,653 3,342 n/a 6105 / 8699
(SNCS)
Unsubsidized (Fee-Based) Programs
Child Care and Preschool
Registration $25 per family Fall / Summer
$43 full day
Babycats Infant/Toddler Daily Rate
$28 half day
Per session calculated at monthly rate for
Preschool $18
10 months
$5.50 per hour
Preschool Extended Care $10 per day / preschool
$15 per day / state preschool
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REVENUE SOURCES
School Age
$5.50 per hour
Kindergarten $13 three hours or less
$17 more than three hours
$5.50 AM care or 1st hour
1st – 8th grades
$11.50 AM/PM care
(July – Nov 2010)
$10 PM care only
$6 AM care or 1st hour
1st – 8th grades
$12 AM/PM care
(effective Dec 2010)
$10 PM care only
Non-School Days & Summer Rates
$40 per child
Summer registration
$50 per family
$25 day – school age
Full Day
$28 day – preschool
$19 day – school age
Half Day
$22 day - preschool
The district offers a 25% discount for district staff members for preschool through 8th grade
students.
Temporary Summer Childcare Assistance Program was offered from July 1, 2010 through August
17, 2010. The program provided a 10% to 50% discount on summer rates to school age children
of qualifying families and a 50% discount for preschool care.
Maximizing Subsidized Revenues
Prior to earning and claiming reimbursement for contract funds, contractors must first expend
all fees received from subsidized parents, The fees must be expended on reimbursable costs and
earned by providing child days of enrollment. To be reimbursed the full contract amount in addi-
tion to the fees received from subsidized parents, the contractor must have additional reimburs-
able expenditures and provide child days of enrollment beyond the minimum required by the
contract at a rate equal to the lesser of the daily contract rate or the actual cost.
Contractors shall be reimbursed for an audited claim that is the least of the following:
1. The maximum reimbursable amount as stated in the annual child develop-
ment contract
2. The actual and allowable net program costs
3. Contract service earnings – The adjusted child days/hours of enrollment for
certified children, times the contract rate per child day/hour of enrollment,
times the actual percentage of attendance plus 5%, but in no case to exceed
100% of enrollment.
Source: California Code of Regulations (paraphrased)
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REVENUE SOURCES
California State Preschool Program (CSPP)
The Union Hill CSPP contract is for $313,810.
To receive the maximum reimbursement amount, the program would need to maintain an
enrollment of 80 half-day children (21.22 for half day) for 180 days of operations or could
operate CSPP full day for 247 days and maintain enrollment of 37 full-day children (34.38 for
full day).
The best practice and one recommendation to earn the maximum reimbursement and meet
the various needs of families would be to operate both half- and full-day CSPP. The operational
structure would be:
• 1 morning class of 20 children all attending half day (8:15 to 11:15 for 180 days)
• 1 afternoon class of 20 children all attending half day (12:15 to 3:15 for 180 days)
• 1 all day class of 20 children in full-day CSPP (7:30 to 5:30 for 247 days)
The above combination would also allow agency to provide preschool services for up to seven
tuition-based families, not to exceed 24 children in any one of the preschool classrooms.
• Current Facility License No. 293601742 has capacity for 47 preschool age children.
• Capacity total is for 59, with a stipulation that 12 of 59 are for ages 18-30 months
General Child Care (CCTR)
The Union Hill CCTR contract is for $118,647.
To receive maximum reimbursement, the program would need to maintain an enrollment of 14
full-day children (7:30 to 5:30) for 247 days of operations.
The CCTR contract would need to consist of children who meet the infant, toddler or after-
school age group because AB 2579 excluded preschool age children from eligibility.
The program could include one infant class (6 weeks to 24 months) and one toddler class (18
months to 30 months) with 6 infants and 8 toddlers for a total of 14 children. Neither the infant
class nor the toddler class may exceed the 12-child license capacity.
Sierra Nevada Children’s Services Contract
The district also has a contract with Sierra Nevada Children’s Services (SNCS) for subsidized
child care. SNCS is funded through a CCTR contract with CDE. Child care services are
provided through the district at a rate of $29.22 per adjusted day of enrollment for eligible
children; reimbursable days are not to exceed 3,342 adjusted child days of enrollment during the
contract period.
The current contract with SNCS is $97,653, which would equal approximately 28 children per
year if each child were enrolled under four hours of care per day (half time) at 217 days. Half-
time care (under four hours) is 0.55 of the maximum daily rate of $29.22, which is $16.07.
Program attendance reports have some children listed in SUB (subsidized) and other children in
SNCS, which makes it unclear if there is another revenue source for alternative payments. The
October 2011 attendance reports indicate 34 children in SNCS and 15 children in SUB. Of the
49 children enrolled in SNCS and SUB contract, 26 children or 52% do not display a consistent
need for services, as follows:
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REVENUE SOURCES
• Eight children (16%) did not attend any days in October
• Eleven children (22%) attended 1-5 total days for the month
• Seven children (14%) attended between 5-10 total days for the month
Children enrolled in the program should be required to meet need, eligibility, and program
attendance commitments. Those not meeting these requirements should be removed from the
enrollment rosters and placed on a waiting list. This will create opportunity for other families
who qualify for services and will secure the 28 children needed for contract fulfillment.
Maximizing Unsubsidized Revenues
• Tuition families should be contracted for the year instead of the current practice of
monthly contracts
• Enrollment priority should be given to parent(s) willing to make the enrollment/
attendance commitment
• The tuition rate should take into consideration the state reimbursement amount for
certified or subsidized children enrolled
• Tuition for after-school care should be set up for parents who have a three-hour or
more need, and the district should establish tuition rates that coincide with subsidized
rates. Best practice would be to set up child care rates under the same division of CDE
reimbursement.
• Under 4 hours of care $18.90
• 4.0 to 6.5 hours of care $25.78
• 6.5 to 10.5 hours of care $34.38
The best practice for billing tuition-based parents would be to take the $21.22 daily rate for part
day at 180 days and divide it by 11 equal months for a fee of $347.23. This amount could be
rounded up to $350 per month and the district could drop the registration fee.
A full-time tuition rate that matches the reimbursement rate for subsidized children is approxi-
mately $710 per month. Infant and toddler care is more expensive to operate than after-school
care because the child-to-adult ratio is lower.
This practice would also eliminate some of the paper work and simplify book keeping.
Program Findings
Tuition Deposits
Deposits were reviewed for November 2010. Deposit memos indicated that several payments
received were not from funds generated during the current period. One deposit was received
from March 2010 and nine others were for periods prior to October 2010. During interviews,
the director stated concerns about being able to perform timely reconciliations without addi-
tional staff assistance. Timely deposits and reconciliation are important internal control proce-
dures that are essential to the proper management and accounting of the program funds.
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REVENUE SOURCES
Program Revenue Distinctions
Program revenues are received and deposited without clear designation as to the source of the
revenue. It appears that the district uses SACS sub-object codes to identify subsidized CCTR and
CSPP revenues; however, FCMAT could not distinguish all revenues by the program or resource
in which they were earned.
Budget vs. Actuals
The annual audit of the child development fund for 2008-09 and 2009-10 indicates sizeable vari-
ances between original budget, final budget and year-end actual revenues.
For the period ending June 30, 2009, the district’s original budgeted revenues from state sources
was $554,500. It appears that no budget adjustments were made through the year as the final
budgeted revenue remained $554,500. Actual state sources revenue for the period came to
$494,611, a variance of $59,889 or over 10% below the budgeted amount.
For the period ending June 30, 2010, the original budget from state revenue sources was
$579,912. Budget adjustments through the year resulted in a final budget amount of $568,418.
The actual revenues from state sources ended at $400,023, or $168,395 less than projected. In
addition, revenue from local sources was budgeted at $430,103 but $571,526 was received for a
favorable variance of $141,423.
Enrollment
October and December attendance sheets show enrollment of approximately 290 infants to
after-school age students. Records indicate that over 60% of these children are tuition-based, yet
center staff indicated that many families claim they cannot afford tuition. These families should
be reviewed for subsidized care eligibility.
Recommendations
The district should:
1. Regularly monitor state contract claims, make program adjustments and
prioritize enrollment into contract programs to ensure the MRA is achieved.
2. Regularly monitor the revenue budget and make revisions that accurately
reflect obtainable revenue projections.
3. Utilize the SACS code structure to clearly identify revenue by program and/
or source.
4. Annually review contract reimbursement rates to ensure that the agency
approved daily rate is no less than the standard reimbursement rate (SRR).
5. Consider a direct contract or additional negotiations in the current contract
with Sierra Nevada Children’s Services to obtain the SRR of $34.38.
6. Review annual insurance costs for the child development and request a rate
increase above the SRR should there be a documented increase in insurance
costs.
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REVENUE SOURCES
7. Consider revising the rates of fee-based programs to match subsidized rates
and/or cost to provide services.
8. Consider prioritizing enrollment in fee-based programs to children who have
regular need for the services.
9. Consider reducing or eliminating voluntary district tuition discounts.
10. Provide for timely reconciliation of program fees and collections for regular
attendees at least monthly. More frequent reconciliation and accounting
is recommended for cash collections, new registrations, and inconsistent
attendees to promptly identify irregularities.
11. Seek additional revenues through local grants, donations, and partnerships.
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EXPENDITURE TRENDS
Expenditure Trends
FCMAT reviewed the district’s child development program fund actual revenue and expenditures
in years 2008-09 and 2009-10 and the budgeted revenue and expenditures for 2010-11 in an
effort to identify areas of potential cost savings.
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EXPENDITURE TRENDS
2009-10 Expenses
The child development program expended $1,017,968.88 in fiscal year 2009-10. Of the total
amount, employee compensation accounted for approximately 92% while supplies, services and
indirect expenditures account for the remaining 8%.
2009-10
3% 1%
4%
Certificated Salaries
21% 28%
Classified Salaries
Employee Benefits
Books and Supplies
43%
Services and Operating
Indirect Cost
2010-11 Budgeted Expenses
The budgeted expenditures for 2010-11 are $763,816, a reduction of $254,153 over prior year.
This reduction was necessary to align expenditures with budgeted revenues. To accomplish this
reduction, the district had to consider employee compensation as the major component of the
budget. Through the staff cuts identified earlier in this report, the program was able to reduce
employee costs by approximately $250,000. The anticipated reductions in revenue made the
program cuts necessary to control expenditures and maintain a positive fund balance for the
program.
2010-11
5%
5%
Certificated Salaries
Classified Salaries
22%
36%
Employee Benefits
Books and Supplies
Services and Operating (0%)
32%
Indirect Cost
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EXPENDITURE TRENDS
Ending Fund Balance
During the fiscal years reviewed, the program’s ending fund balance eroded from nearly $75,000
in June 2008 to a projected balance of less than $16,000 at the end of the current year.
Should the deficit spending trend continue as budgeted in the current year, the district will
expend its fund reserve over the next two fiscal years and the program will require an encroach-
ment to other district funds.
Fund 12 Ending Balance
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
0
Actual 2008-09 Actual 2009-10 Budget 2010-11
Expenses by Program
FCMAT attempted to extrapolate expenditure trends by program but was not able to identify
expenses by program with a high degree of confidence. Employee compensation can be tracked
to school or child care by examining the SACS function and goal codes. However, commingling
of child placement within programs and coding of all child development revenues under resource
6105 left the analysis inconclusive.
Supplemental Compensation
FCMAT reviewed financial activity and extra hours reports for the period July through October
2010. Within this period, 2,203 hours of extra and substitute time were reported. The cost for
these extra hours in salary compensation only (not including statutory benefits) was $23,720.28.
The district budget for this supplemental compensation is $35,000 for the period to end June
2011. Should these expenses not be controlled, the program will overexpend this budget line
item and jeopardize fund solvency.
Further, a more extensive use of the SACS coding capabilities may help the district to more
specifically identify employee supplemental compensation by program and by type (substitute,
extra hours, time payoff, overtime, etc.).
Sustainability of Expenditure Cuts
The program may be unable to sustain the support staff cuts implemented at the beginning of
the fiscal year. It will be difficult for the program to maintain compliance, internal controls, and
essential procedural functions given the reduction of administrative and clerical support. This is
discussed in more detail in the Staffing section of this report.
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EXPENDITURE TRENDS
Facilities Expense
Budget reports for 2009-10 and 2010-11 show that the district does not assign maintenance,
custodial, operational, and utilities expenses to the Bearcat Discovery Center. These expenses are
absorbed by the district’s general fund. Without accounting for these necessary expenses, the true
cost of the child development programs is unknown. The absence of these expenses artificially
improves the center’s budgetary outlook.
Recommendations
The district should:
1. Implement increased use of the SACS coding capabilities to more specifically
identify expenditures by program, including compensation, supplies, and
other expenditures.
2. Monitor staff hours and assignments to control extra time and supplemental
compensation. Should additional staff hours be necessary to maintain
compliance and service goals, make timely budget adjustments to reflect the
increased costs.
3. Review administrative and clerical needs for the center and instate positions
as necessary to maintain compliance, internal controls, and essential func-
tions.
4. Identify and assign all expenses associated with running the Bearcat Discovery
Center to the child development fund, including those associated with facili-
ties maintenance, custodial services, operational expenses, and utilities.
5. Seek alternative opportunities for cost reductions including adjusting
employee calendars and hours, eliminating programs that are not self-
sustaining, and increasing parent voluntary participation and support.
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MULTIYEAR FISCAL SOLVENCY
Multiyear Fiscal Solvency
As reported in the revenue and expenses sections of this report, dramatic fluctuations have
occurred in the child development program that affect its ongoing solvency. Child care programs
faced threats of reduced funding in the 2010-11 May Revise and again in the 2011-12 governor’s
proposed budget. Expenditures, driven by employee compensation, continue to rise because of
salary and benefit cost increases inherent in the district’s compensation schedules. The district
recognized the need to reduce program costs and staffing to balance the budget.
Other than actions taken to balance the budget in the current year, neither the program director
nor other district personnel has devised a fiscal solvency plan for the child development program.
FCMAT’s review of the program operations and fiscal solvency identified options to increase
efficiencies, reduce costs, and maximize revenues, as discussed in other sections of this report. To
further evaluate and create a multiyear solvency plan, the district should first implement detailed
tracking of child enrollment and attendance revenues and expenditures for each program and
contract. This level of detail is necessary to determine the solvency of each program and to calcu-
late the effects of the various revenue and expenditure fluctuations.
In developing a plan, the district should determine multiyear goals for service and program
offerings. A multiyear facilities plan should be developed that reflects facilities and facility main-
tenance needs for the Bearcat Discovery Center. Available funds should be identified along with
a process for seeking additional revenue sources to meet these needs. Program revenue sources
should be reviewed, as well as current and potential threats to those funds in a multiyear scenario.
Program expenses should be forecast, inclusive of all staff, supplies, operational and utilities costs.
A healthy reserve should be re-established in the child development fund.
Recommendations
The district should:
1. Develop a multiyear solvency plan for the Bearcat Discovery Center.
2. Establish an annual calendar that reflects key timelines to regularly review
program status and update the plan. This calendar should consider timelines
necessary to make decisions regarding staffing, program offerings, contract
applications, and district reporting requirements.
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WORKFLOW AND COMMUNICATION
Workflow and Communication
Prior to the reductions and staffing at the beginning of the 2010-11 fiscal year, the positions
of director, assistant director, administrative assistant, bookkeeper/clerk, and district business
manager worked together to perform duties with regard to student enrollment, attendance
tracking, contract claims, tuition billing, staffing, and other necessary functions. As the FCMAT
study team conducted interviews and reviewed program files, procedures, and compliance
reviews, there were no indications that the policies, procedures and communications were clearly
defined. Staff interviewed provided different responses regarding enrollment processes, eligibility
determination, and child placement in the program. File inconsistencies indicated a lack of
defined processes and accountability. Compliance reviews reflected several concerns regarding
file maintenance, program documentation, timely communications, and following proper proce-
dures.
Since the reduction in staffing, the director has performed the data collection and tracking
involved in maintaining enrollment and attendance, establishing eligibility, determining tuition
and fees, and parent communications. The district’s business manager provides support through
deposit reconciliation, revenue tracking, and program budget monitoring.
Recommendations
The district should:
1. Establish policies and procedures for workflow and communication between
the child development program and district.
2. Delegate administrative and clerical duties among staff to ensure that the
director and business manager do not perform all such duties. Ensure that
each staff member is aware of responsibilities, knows how to accomplish
them, and has time allocated to complete their duties.
3. Regularly evaluate staffing to ensure it is appropriate and sufficient to attain
the goals and compliance requirements of the program.
4. Establish accountability and process review procedures to ensure file and
program records maintenance, to audit source documents, and to identify
redundancies or weaknesses in workflow.
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HOURS OF OPERATION AND EMPLOYMENT CALENDARS
Hours of Operation and Employment
Calendars
The program operates from 6:45 a.m. to 6 p.m., 11.25 hours a day. Actual hours of care for
children range from 3 to under 10.5 hours. It appears that the hours of operation have expanded
to accommodate parent requests. The program is not required to span the number of operating
hours it currently does, and the hours at the beginning and end of the day are underutilized.
Although it is important to respond to the needs of the families served, it is not efficient to adjust
to all requests. The program should operate no more than 10 hours per day to allow for proper
staffing and to accommodate most families. Many child care centers find that 7:30 a.m. to 5:30
p.m. works well. An analysis of family contracts and daily sign-in sheets may show that the hours
could be reduced even further. Should the center wish to provide hours outside the standard
operating hours, fees should be collected to fully offset the resulting expenses.
FCMAT reviewed the October 2010 attendance records and found the following:
• Children on roster 301 (includes children counted multiple times due to different
programs).
• Total 2,663 student attendance reported for the month (equals number of children times
days attended)
• 1,573 attendance days at less than 4 hours
• 290 attendance days at 4 to 6.5 hours
• 796 attendance days at 6.5 to 10.5 hours
• 4 attendance days total for only two children at 10.5 or more hours
In addition, the program offers multiple choice of care options to parents regardless of income
and need certification. During interview inquiries about student tracking and claim reporting,
options were referenced regarding days of attendance and program flexibility including allowing
families to add a day, switch a day, and trade out a day.
To maintain program efficiencies and compliance whenever these options are exercised by the
families, staffing must be adjusted to maintain appropriate ratios of oversight. These options also
make tracking attendance for contracts and tuition billing cumbersome. Overall, the level of
flexibility and options offered to families makes it extremely difficult to operate a fiscally sound
program.
Recommendations
The district should:
1. Review program hours of operation and student attendance at the beginning
and end of the day when it is typically low.
2. Stagger staff shifts to accommodate student attendance.
3. Align hours of operation to meet the greatest needs of parents and students.
Union Hill scHool District
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HOURS OF OPERATION AND EMPLOYMENT CALENDARS
4. Review fee contracts to identify needs of parents and adjust hours to maintain
attendance minimums necessary to cover costs.
5. Standardize policy and procedures for accommodating parent needs for addi-
tional days and additional hours. Ensure that the flexibility options do not
encroach on the program.
6. Exercise the authority of the superintendent to change the work calendar of
employees to meet program needs (see Work Year as defined on job descrip-
tions).
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JOB DESCRIPTIONS
Job Descriptions
The intent of a job description is to clearly define the requirements of the job and the role of
that position in the organization. Components of a good job description include title, job clas-
sification, duties and responsibilities, essential functions, necessary and desired qualifications,
supervision, and working conditions of the job. They should also clearly establish authority,
responsibility, and expectations of the position.
Accurate and current job descriptions assist an organization in operating efficiently and effec-
tively.
As organizations change and job requirements evolve, job descriptions should be updated regu-
larly to ensure their accuracy and relevance to the current organizational structure and position
requirements.
FCMAT reviewed the Union Hill School District job descriptions that related to the child devel-
opment program, which included the positions of preschool teacher, center instructor, center
assistant, Bearcat/Alta special needs assistant, center aide, health aide/receptionist, administrative
assistant, bookkeeper/clerk, and supervisor of child development programs.
Director of Childcare Programs
As FCMAT reviewed job descriptions, salary schedules, and staffing rosters for the program, the
study team found discrepancies between the job description, classification, and authority of the
position that oversees the Bearcat child care programs.
The supervisor of child development programs job description approved May 2000 indicates the
position overseeing the Bearcat Discovery Center is a confidential supervisory position. This is
consistent with the district staff directory, position control, and salary schedule.
The business cards for the position and the job descriptions of subordinate positions reference the
position as director of child care programs. The positions of preschool teacher, child development
center instructor, child development center assistant, Bearcat/Alta special needs assistant, child
development center aide, and child development center administrative assistant all report to the
director of child development programs. The job description for the position of bookkeeper/
clerk for Bearcat child care programs reports to the director of child care programs but receives
supervision from the supervisor of child care programs. Further, the position, although identified
as confidential on the job description, is placed on the management salary schedule.
The irregularities in identifying the classification, roles and responsibilities for this position may
cause confusion regarding authority and responsibility and may complicate accountability issues
for the district.
Assistant Director
No job description was found for the Assistant Director position.
Admissions/Accounting Tech
No job description was found for the admissions/accounting tech.
Staff interviews indicated that the duties of the admissions/accounting tech included those listed
for the bookkeeper/clerk for Bearcat child care programs and the Child Development Center
administrative assistant positions. The job descriptions for both positions indicate they were last
updated in May 2007.
Union Hill scHool District
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JOB DESCRIPTIONS
The district salary schedule for 2010-11 does list a salary range for the child development admis-
sions/accounting tech and classifies it as a confidential position.
Recommendations
The district should:
1. Regularly review and update job descriptions to identify their accuracy and
ensure their alignment with the needs of the district.
2. Identify and create missing or incomplete job descriptions so that the job
description for every district position clearly identifies the position’s responsi-
bilities, classification and authority, as well as the expectations of the position.
3. Ensure that employees whose employment is divided between more than one
role with the district are clearly identified by job title, funding, and hours or
FTE for each position they hold. Align the payroll and accounting records
with this identification.
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Appendices
Appendix A
Study Agreement
Appendix B
Excerpts from CDE’s Greenbook
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Appendix A
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Program Management and Fiscal Expertise Appendix B
A successful program must have sound fiscal management. There is no requirement that an agency earn
the full Maximum Reimbursable Amount (MRA) of its contract. What is important for fiscal solvency
is that an agency does not spend more than it will collect as income. Contractors are responsible for
knowing the details of their contract’s Funding Terms and Conditions and pertinent sections of the
Education Code and California Code of Regulations, Title 5. While CDFS staff provides some tech-
nical assistance, contractors are ultimately responsible for monitoring their enrollment and expenditure
levels, knowing what steps need to be taken to ensure program compliance, and having the business
expertise to manage the program’s finances and avoid deficit spending.
To quote an Administrative Law Judge’s ruling denying a contractor’s appeal:
“If a program operator does not know, or have the competence to know, that it will not meet
its program goals, who should? … The Department should be able to rely on a reasonable level
of fiscal competence.”
Contractors should become familiar with their contract Funding Terms and Conditions so they know
what expenses are reimbursable and which reimbursable costs have limits.
Contractors should monitor both their enrollment and their expenses so they do not spend more than
their income.
Certification of Eligibility and Need
“CSPP eligible four-year-old children” means children who will have their fourth birthday on or before
December 2 of the fiscal year in which they are enrolled in a California State preschool program.
“CSPP eligible three-year-old children” means children who will have their third birthday on or before
December 2 of the fiscal year in which they are enrolled in a California State preschool program.
CSPP eligible three-year old children may be enrolled in a CCTR program until their third birthday.
CSPP eligible four-year old children are ineligible for CCTR program services.
The contractor shall designate the staff persons authorized to certify eligibility. Prior to initial enroll-
ment and at the time of recertification, an authorized representative of the contractor shall:
1. Certify each family’s/child’s eligibility and need for child care and develop-
ment services after reviewing the completed application and documentation
shall be contained in the family data file.
2. Issue a Notice of Action (NOA), Application for Services or a NOA, Recipient
of Services.
At the time of certification and recertification, families shall be informed of their responsibility to
notify the contractor, within five (5) calendar days, of any changes in family income, family size, or
need for child care and development services.
Full day preschool is only for age eligible 3 & 4 year old children who meet the age, income and family
need criteria.
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Half day preschool is only for age eligible 3 & 4 year old children who meet age & income require-
ments.
Subsidized child care and development services shall only be available to the extent which the parent
meets a need criterion that precludes the provision of care and supervision of the family’s child for some
of the day. Since CDE contracts subsidize only certified children, if a program includes non-certified
children, the CDE will prorate the total program costs to determine the appropriate amount to be
allocated to the state-subsidized portion.
Contractors shall use daily sign-in/sign-out sheets as a primary source document for audit and reim-
bursement purposes.
Community Care Licensing
Department of Social Services Title 22 Division 12
Section 101156 License Required
Unless a child care arrangement is exempt from licensure (101158), no adult, partnership, corpora-
tion, public agency or other governmental entity shall operate, establish, manage, conduct or provide
care and supervision without a valid license from the Department.
Section 101179 Capacity Determination
A license is issued for a specific capacity which is the maximum number of children that can be cared
for at any given time. The number of children is determined by the fire clearance; the physical features
of the Child Care Center, including available space; and the available staff to meet the care and super-
vision needs of the children.
Section 101482 Issuance of a School-age Child Care Center License
Dated 7/25/2007: The Department shall issue a license to an applicant according to Health and Safety
Code Section 1597.21, after a completed application has been submitted, and all licensing require-
ments have been met.
Staffing Ratio Requirements
Section 18290 of Title 5 of the California Code of Regulations provides:
Contractors shall maintain at least the following minimum ratios in all centers:
Infants (birth to 18 months old) - 1:3 adult-child ratio, 1:18 teacher-child ratio.
Toddlers (18 months to 36 months old) - 1:4 adult-child ratio, 1:16 teacher-child ratio.
(C) Preschool (36 months to enrollment in kindergarten) - 1:8 adult-child ratio, 1:24
teacher-child ratio.
(D) Children enrolled in kindergarten through 14 years old - 1:14 adult-child ratio, 1:28
teacher-child ratio.
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(E) Compliance with these ratios shall be determined based on actual attendance.
(2) Section 18291 of Title 5 of the California Code of Regulations provides:
(A) Whenever groups of children of two (2) age categories are commingled and the younger age group
exceeds fifty percent (50%) of the total number of children present, the ratios for the entire group must
meet the ratios required for the younger age group.
(B) If the younger age group does not exceed fifty percent (50%) of the total number of the children
present, the teacher-child and adult-child ratios shall be computed separately for each group.
101216.4 PRESCHOOL PROGRAM WITH TODDLER COMPONENT 101216.4
(a) Licensees serving preschool-age children may create a special program component for children
between the ages of 18 months and 30 months. The provisions of Sections 101151 through 101239.2
shall apply for children over 24 months, except as specified in Sections 101216.4(a)(1) through (6).
The provisions of Sections 101351 through 101439.1 shall apply for children between the ages of
18 and 24 months participating in a preschool toddler component, except as specified in Sections
101216.4(a)(1) through (6).
(1) Child care centers with an existing preschool program wishing to establish a toddler component
shall submit an amended application and obtain approval from the Department.
(2) Children in a child care center between the ages of 18 months and 30 months may be placed in the
toddler program. A child older than 30 months may participate in the toddler program with written
permission from the child’s authorized representative. No child in the toddler program shall be placed
in the preschool program before the age of 30 months without written permission from the child’s
authorized representative.
(3) It shall be permissible for a child whose developmental needs require continuation in a toddler
component to remain in the toddler component up to a maximum age of three years.
(4) A ratio of six children to each teacher shall be maintained for all children in attendance in the
toddler program. An aide who is participating in on-the-job-training may be substituted for a teacher
when directly supervised by a fully qualified teacher.
(5) The maximum group size, with two teachers, or one fully qualified teacher and one aide, shall not
exceed 12 toddlers.
(6) The toddler program shall be conducted in areas physically separate from those used by older
or younger children. Space planning and usage for the toddler component shall be governed by the
provisions of Section 101438.3. Plans to alternate use of outdoor play space must be approved by the
Department.
(A) Requirements for physical separation between children in the toddler component and older or
younger children need not apply when a planned activity is being conducted.
Union Hill scHool District
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A licensed school age child care center has the following teacher-child ratio
1 teacher to no more than 14 children
1 teacher and 1 aide may supervise no more than 28 children
Funding
As with all CDE full-day child development contracts, the CSPP and CCTR contracts use
the standard reimbursement rate as the maximum daily reimbursement. The current rate is
$34.38 per child day.
The CDE contracts allow for actual enrollment to be adjusted by part-day adjustment factors. Part-day
designations (full-time, half-time, etc.) account for costs based on the length of services in a day. Rather
than complicate contracts with multiple reimbursement rates for these part-day designations, the CDE
uses adjustment factors to change actual enrollment to Adjusted Days of Enrollment. Since service-level
earnings are based on the contract rate multiplied by Adjusted Days of Enrollment, this practice results
in different reimbursement levels.
General programs (CCTR) are divided into a four-part day. The four divisions and their adjustment
factors, in accord with Education Code Section 8266.1, are:
Full-time plus (10.5 hours and over) 1.18
Full-time (6.5 to under 10.5 hours) 1.00
Three-quarters-time (4 to under 6.5 hours) 0.75
Half-time (under 4 hours) 0.55
California State Preschool programs (CSPP) are divided into a four-part day. The four divisions and
their adjustment factors are:
Full-time plus (10.5 hours and over) 1.18
Full-time (6.5 to under 10.5 hours) 1.00
Three-quarters-time (4 to under 6.5 hours) 0.75
Half-time (under 4 hours) 0.6172
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