MEMPHIS SCHOOL OF EXCELLENCE CORDOVA A Charter School Application Submitted by: Read Foundation April 1, 2019 Table of Contents General Information Assurances New Application Section 1: Academic Plan Design and Capacity 1.2 Enrollment Summary 1 1.12 Community Involvement and Parent Engagement 8 1.13 Existing Academic Plan 18 1.14 Performance Management 19 Section 2: Operations Plan Design and Capacity 2.11 Network Vision, Growth Plan, & Capacity 30 2.12 Network Management 40 2.13 Network Governance 50 2.14 Charter School Management Contracts 60 2.15 Personnel/Human Capital – Network-wide Staffing Projections 61 2.16 Personnel/Human Capital – Staffing Plans, Hiring, Management, and Evaluation 63 Section 3: Finances 3.4 Financial Plan 73 Section 4: Portfolio Review/Performance Record 4.1 Past Performance Additional Information Required by SCS 77 97 Attachments E: Pledged Support 100 F: Board Documents 112 G: School Organizational Chart 130 L: Organization/Network Annual Reports or Audits 131 M: Network Organizational Chart 284 O: Planning and Budget Worksheet 287 P: Budget Narrative 294 Q: Network Budget 311 R: Student Achievement/Growth Results 322 S: Portfolio Summary Template 327 U: School Financials 332 Original Application 347 GENERAL INFORMATION Name of proposed school: Memphis School of Eggllence Cordoya Projected year of school opening: 2020 Charter authorizer for proposed school: Shelby County Schools Sponsorr'SponsoringAgency: Read Foundation The sponsor is a not-for-profit organization with No In Process Model or focus of proposed school: 6?12:FoI:us on STEM Name of primary contact person [this person should serve as the contact ior follow?up, interviews, and notices regarding this application]: MuhammetTurkay 44505 Mendenhall Road St. 1 Memphis, TN 33141 Primary Telephone: 491?6354 Alternate Telephone: I 9&1} 367-?314 EmailAddress: mturkayt?lsememohisore Names. current employment, and roles of all people on school design team [add lines as needed]: Full name Current job title and employer Position with proposed sthool ., Muhammet Turkey Executive Director, MSE Executive Director Samuel Beyhan Director of Operations, MSE Director of Operations Gabriella Nelson Director of Academics, MSE Director of Academics Gregory Thompson Financial Adviser-Consultant, GT3 Group Financial adviser-Consultant Name of proposed school leader [if any): To be determined Proposed school leaders current employment: City or geographic community: Cordelia Does the proposed school intend to contract or partner with a charter management organization or not-for-profit education service provider? Yes No If yes. identify the or other partner organization: Does this applicant have charter school applications under consideration by any other authorizeris}? Yes_No 3 If yes. complete the table below} adding lines as needed: State Authorizer Proposed School Name Application Decislon Prupused DUE Date Date opening Indicate Applicant Type: El New-Start Applicant El Existing TN Operator Proposing New Focus/Grade DR Existing non?TN operator DR Existing ASD operator Existing Tennessee Operator Proposing Exact Focustrade Structure ASSURANCES As the authorized representative of the sponsor, I hereby certify that the information submitted in this application for a charter for Memphis School of Excellence Cordova is true to the best of my knowledge and belief, realizing that any misrepresentation could result in disquali?cation from the application process or revocation after award; and if awarded a charter, the school: 1. Will operate as a public, nonsectarian, non-religious public school, with control of instruction vested in the governing body of the school under the general supervision of the chartering authority and in compliance with the charter agreement and the Tennessee Public Charter Schools Act; Will follow all federal, state, and local laws and regulations that pertain to the operation of a public school, unless waived according to T.C.A. 4943-105; Will provide special education services for students as provided in Tennessee Code Annotated Title 49, Chapter 10, Part of the individuals with Disabilities Education Act; Title I: of the Americans with Disabilities Act of 1990, and Section 504 of the Rehabilitation Act of 19?3; Will adhere to all provisions of federal law relating to students who are limited English proficient including Title VI of the Civil Rights Act of 1964 and the Equal Educational Opportunities Act of 19?4, that are applicable to it; Will follow all federal and state laws and constitutional provisions prohibiting discrimination on the basis of disability, race, creed, color, national origin, religion, ancestry, or need for special education services; Will utilize this application as a contract with the authorizer, if no other agreement is signed, pursuant to Tennessee Attorney General Opinion No. 10-45; Will comply with all provisions of the Tennessee Public Charter Schools Act, including, but not limited to a. employing individuals to teach who hold a license to teach in a public school in Tennessee; b. complying with Open Meetings and Open Records laws (T.C.A. 3-44-101 et seq.; 10- 7-503, 504) {guidance is available from the Of?ce of Open Records (Sou?reels c. not charging tuition, except for students transferring from another district to the school pursuant to the local board?s out-of-district enrollment policy and 49-6?3093; d. following state financial [budgeting and audit) procedures and reporting requirements according to 49?13411, 120, and 12?; e. requiring any member of the governing body, employee, officer, or other authorized person who receives funds, has access to funds, or has authority to make expenditures from funds, to give a surety bond in the form prescribed by 23-19-101; and 8. Will, at all times, maintain all necessary and appropriate insurance coverage. M. ?fir/M7? i. Signature Muhammet Turkay Printed Name of Authorised Signer Executive Director Title of Authorized Signer Section 1: Academic Plan Design and Capacity 1.2 Enrollment Summary In this section: a. Describe the community from which the proposed school intends to draw students, including the demographic profile and school zones within the LEA. Our school will be located in the Cordova area of Memphis, which is zoned under Shelby County schools. In recent years, Cordova has experienced rapid commercial and residential growth – many new businesses and organizations have opened, and numerous housing developments have been, or are in the process of being, built across the Cordova area. Since the most recent available census data is from 2010, the demographic profile captured during the census does not mirror the demographic profile of students currently enrolled in the public schools operating in Cordova. Given this discrepancy, the following chart details the demographic profile of students enrolled in every public school operating in Cordova as detailed on 2018 State report cards: School Chimneyrock Elementary School Cordova Elementary School Dexter Elementary School Macon-Hall Elementary School Riverwood Elementary School Cordova Middle School Dexter Middle School Cordova High School Percentage of Black, Hispanic, and Native American Students Percentage of Economically Disadvantaged Students Percentage of English Learner Students Percentage of Students with Disabilities 79.6% 36.8% 11.6% 11.2% 78.7% 37.2% 8.3% 11.9% 84.7% 46.3% 9.7% 10.3% 78.4% 26.7% 5.2% 7.4% 71.8% 25.4% 5.7% 8.1% 80.4% 32.2% 6.1% 11.9% 89.1% 39.8% 4.9% 13.6% 86.9% 32.4% 6.8% 12.4% Page 1 b. Provide a rationale for selecting the community where the proposed school will locate. The rationale for selecting the community where the proposed school will locate revolves around three primary reasons: 1) help alleviate the problem of over-enrollment of the public schools currently in operation in Cordova; 2) expand public school choice in Cordova for parents; and 3) offer students the opportunity to engage in STEM-centered academic program. As indicated above, the Cordova area of Memphis has experienced recent rapid commercial and residential growth, which has yet to slow. Continued growth of both businesses and households is predicted to further populate the Cordova neighborhood in the upcoming years. While commercial facilities and housing developments have been built in response to this growth, the creation of enough new schools to accommodate the growing number of school-aged children, as well as provide families with school choice has not kept pace with demand. More specifically, there are currently only two middle schools and one high school operating in the Cordova area. While SCS’s Supplemental Information for Charter School Applicants indicates that the average middle school building utilization is only currently 69%, we project that the middle schools will soon reach, and eventually exceed, enrollment capacity. More specifically, the five public elementary schools operating in Cordova currently serve a combined total of about 4,000 students across the schools. With the matriculation of these elementary school students and projected continued growth of the Cordova area, the middle schools will soon reach capacity and will eventually become over-enrolled. Additionally, the average high school building utilization is 108%, indicating that the one public high school option in Cordova is already overenrolled. Accordingly, we selected Cordova, in part, to alleviate the problem of anticipated and current over-enrollment. With only two public middle schools and one public high school currently in operation, parents seeking a public school education for their child(ren) currently have limited options in Cordova. One middle school and the high school are large, with enrollments of more than 700 and 2,000 students, respectively. While the other middle school currently serves approximately 400 students, both middle schools are about 30% under-enrolled, which means a much larger student body upon reaching enrollment capacity at both schools. While some parents may prefer a large school setting for their child(ren), other parents may wish to send their child(ren) to a small school but do not have the option to currently do so in Cordova. We intentionally designed our school to be small to keep class sizes down, to provide an individualized learning environment, and to cultivate a family-like school culture. By year six of operation, we will be operating at capacity with enrollment capped at 525 total students across grades six through twelve. Our school will provide parents seeking a small school environment for their child(ren) an option that does not currently exist in Cordova. Further, both middle schools and the high school operate as traditional public schools. Similar to size, some parents may prefer a traditional school. Others, however, may want another public option, which is not currently available to them in Cordova. Under the traditional model, schools must implement the district’s curricula and administer specific district-mandated assessments, as well as adhere to the district’s academic and operational policies and procedures. Our school will operate as a charter, which will grant us certain autonomies that traditional public schools Page 2 do not enjoy. While we will be accountable for meeting established school goals – including academic, operational, and financial targets, as well as will be required to administer all Statemandated assessments – we will have more control over our academic and cultural programming, as well as more freedom around the operation of the school. Such autonomy will enable us to implement an innovative academic program, which will have a strong science, technology, engineering, and mathematics (STEM) focus (discussed in more detail below). c. Discuss the academic performance and enrollment trends of surrounding schools in that community. School Total Enrollment Graduation Rate On Track Plus Mastered Rate 2018 ELA On Track Plus Mastered Rate 2018 Math Cordova 731 N/A 21.2% 13.8% Middle Dexter 411 N/A 20.5% 17.3% Middle Cordova 2210 87.2% 13.8% 6.3% High SCS N/A 79.6% 20.4% 19.6% Average State N/A 89.1% 32.8% 33% Average SCS Average Middle School Building Utilization in Cordova SCS Average High School Building Utilization in Cordova School TVAAS Composite Rating School TVAAS Rating 2018 Literacy School TVAAS Rating 2018 Numeracy 1 2 1 5 5 5 1 1 1 2 5 1 Data Not Available 69% 108% As explained above, the Cordova area of Memphis has experienced recent rapid commercial and residential growth, which has yet to slow. Per the United States Census, the total population of Cordova was 52,262 in 2010. Estimates put the total population at 60,762 as of 2017, which is 16.3% increase in just seven years. Despite this growth, there are currently only two public middle schools and one public high school operating in the Cordova area. While Shelby County Schools (SCS) Supplemental Information for Charter School Applicants indicates that the average middle school building utilization is only currently 69%, we project that the middle schools will soon reach, and eventually exceed, enrollment capacity. More specifically, the five public elementary schools operating in Cordova currently serve a combined total of about 4,000 students across the schools. With the matriculation of these elementary school students and projected continued growth of the Cordova area, the middle schools will soon reach enrollment capacity and will likely eventually become over-enrolled. Additionally, the average high school building utilization is 108%, indicating that the one public high school option is already over-enrolled. According to SCS’ School Performance Scorecards for the 2017-18 school year, both of the public middle schools operating in Cordova exceeded the district’s average for on-track plus mastered rates in English language arts (ELA); however, neither middle school met the State’s average. Both of the middle schools also fell below the district and State’s average in mathematics. Additionally, one middle school earned a Tennessee Value-Added Assessment System (TVAAS) Page 3 composite score of 5 while the other received a 1. The high school currently in operation in Cordova was significantly below the district and State’s average for on-track plus mastered rates in ELA and mathematics and earned a composite TVAAS score of 1. While the high school exceeded the district’s graduation rate, it did not meet that of the State. Our school would provide parents with another much-needed high-quality public-school option in the Cordova area. Since opening in 2010, our network has a solid track record of success. More specifically, since its first graduating class in 2014, MSE has consistently graduated nearly 100% of seniors, with graduation rates of 100% from 2014-16 as well as 2018, and a 98% graduation rate in 2017. Further, in 2018, 100% of graduates were accepted into college, the majority of whom participated in the TN Promise Program and collectively earned more than $6M in scholarships. The school: has significantly increased its American College Test (ACT) score average over the past 5 years (from 13.8 in 2014 to 18.8 in 2018); ranks #5 among all Shelby County Schools (SCS) high school in terms of the percentage of its graduates who are college-ready; and is in the top quartile of all SCS high schools for its ACT average. These successes contributed to MSE being recognized by US News and World Report, which ranked it the #1 charter high school in Tennessee and #26 among all high schools in the State.1 In 2016, Tennessee moved to more rigorous State standards and tests, which resulted in a significant decline in student proficiency rates across Shelby County and the State. Despite the more challenging academic environment, MSE has performed well among its peers in math and English Language Arts (ELA) – as well as in academic growth. On SCS’ School Performance Framework (SPF) in 2017-18, MSE ranked #12 of 82 middle and high schools in the district and #8 of 42 high schools. In 2016-17, MSE’s SPF was ranked #4 among all SCS high schools. In terms of math and reading/language arts proficiency, MSE has performed in the top 20% of all middle/high schools in the district over the past two academic years. Finally, MSE has consistently achieved strong TVAAS scores over the past 8 years, achieving a Level 4 or 5 in seven of the last eight years. We are eager to expand to the Cordova community to provide the area with a high-quality middle and high school option that will help to alleviate anticipated and current over enrollment, as well as provide parents with a high-quality option to increase public-school choice in Cordova. d. Describe the specific population of students the proposed school intends to serve. We intend to serve students residing in the Cordova neighborhood, as well as students living in the areas immediately surrounding Cordova. Accordingly, we anticipate that the majority of our students will qualify for free and reduced-price lunch as indicated by PowerSchool data. We also predict that the majority of our student body will be composed of students of color. More specifically, we anticipate that most of our students will be African American. We also predict that Latino students will account for approximately a fifth of our student body, followed by Caucasian and Asian students. Given enrollments in public schools currently operating in 1 https://www.usnews.com/education/best-high-schools/tennessee/districts/shelby-co/memphis-school-of- excellence-147620 Page 4 Cordova, we anticipate that approximately a twelfth of our student body will be students with special needs and less than a tenth will be students who are English language learners (ELLs). e. Summarize what the proposed school would do more effectively than the schools that are now serving the targeted population. As described above, our network has a solid track record of success. We intend to replicate the exact grade structure and focus of our school currently in operation in Hickory Hill. We are confident that the replication of our model will also result in positive student outcomes and success in Cordova. The following explains the key design elements that we will implement to more effectively serve the students of Cordova: ● Enriched Curriculum: Our curriculum and learning environment will provide all students with access to engaging, stimulating, and rigorous curriculum. More specifically, our curriculum will be personalized, inquiry-based and, as applicable, aligned to the Common Core State Standards (CCSS), Next Generation Science Standards, and Tennessee Academic Standards. STEM will be infused across our academic program, and students will have ample opportunities to apply their learning through projects and science fairs. In addition, all students will take a STEM class that will employ the Code.org curriculum. We also plan to have a robotics club; all students will have the opportunity to join. The robotics club will meet regularly and will expand on the STEM concepts and skills learned during the school day. Members will have the opportunity to compete in local, State, and national competitions. The club currently active at our school in Hickory Hill has enjoyed numerous wins and top placements in competitions over the last several years. Further, we will implement Math Counts and American Math Competition as extracurricular activities, which will also serve to further reinforce and extend STEM skills and concepts learned during the school day. ● Technology Integration: To support our STEM focus, as well as equip students with the technology skills needed to succeed in the 21st century, all students will take a technology class as an elective. This class will teach and reinforce the fundamentals of effectively using a computer, as well as expose students to more complex STEM-related concepts and activities through the implementation of code.org curriculum, which will enable students to master the fundamental, as well as more advanced, principles and concepts of computer science. Additionally, the technology classroom will be outfitted with a three-dimensional (3-D) printer, which will allow students to participate in numerous STEM projects, such as creating the specifications for, and printing, a working prosthetic hand (among other items). Additionally, technology will be infused across other disciplines. Laptops and iPads will be readily available for teachers to use during instruction; classrooms will be outfitted with technological tools such as document cameras and SMARTboards to utilize during instruction. We will also provide a fully outfitted computer lab. Our robust integration of technology across contents and classrooms through the use of computer-based programs such as Accelerated Reader, Accelerated Math, iReady, MobyMax, Kuta, and Study Island, as well as digital curricular resources, will better equip students with critical skills and will enable us to implement our STEM focus. ● Standardized and Authentic Assessment: To ensure that students are mastering the standards and content taught through our enriched curriculum, we will implement a robust assessment program. We will administer all required State standardized assessments, as well Page 5 as regular benchmark assessments, to gauge student proficiency on pre-established benchmarks of learning at specific points in time. Benchmarks will be formative and summative, allowing teachers to adjust instruction to meet the needs of every student and enabling teachers to discern proficiency rates. We will also measure student growth through administrations of the Northwest Evaluation Association Measures of Academic Progress (NWEA MAP) assessment three times a year. Our authentic assessment system will work to complement the standardized assessments we administer. Teachers will collect and analyze student work over time; work samples and teacher observations will be housed in student portfolios, enabling teachers and students to see progressive growth. ● Effective Intervention: All students will have individualized learning plans that guide and are responsive to students’ individual learning needs. We will also provide numerous tutoring opportunities, including before and after school, on Saturdays, as well as with peers and mentors. For students in need of additional academic and/or behavioral support, we will implement a robust Response to Instruction and Intervention (RtI2) program to ensure that all students receive the support they need to be successful. We will also provide robust English language learner programming to ensure that students who are acquiring English language proficiency receive all needed and legally-mandated services and supports. ● Robust Support for Instructional Staff: To ensure that our instructional staff provides rigorous, high-quality instruction and effectively implements our academic focus and model, we will provide robust supports. More specifically, every teacher will be assigned an instructional coach who will provide individualized support through observation and feedback cycles, as well as unit and lesson plan design and implementation support. Every teacher will have two daily planning periods to enable teachers ample time to create and revise plans. Further, we will provide extensive assessment and data supports. Leadership will create all benchmark exams for teachers. In addition, we will offer an electronic test center, which will enable teachers to enter tests and have scantrons created and graded by the center. The center will also allow teachers to assign standards to every question. The center will provide teachers with easy access to disaggregated data to the question and standard level, as well as by subpopulation, cohort, and individual student levels, to inform upcoming instructional plans. To support teachers in using the center and becoming fluent in data, we will offer robust professional development (PD) and support around data-driven instruction (DDI) throughout the year. Further, we will implement a “Grow Your Own Administration” program, which will build leadership capacity. ● Parental Involvement: We believe that parents are our partners; we will actively engage parents and community members in the life of our school. We will build strong family-school partnerships that will strengthen support for learning and encourage parent involvement through methods such as the following, which are thoroughly described in the Community ● ● ● ● ● Parent-Board Member School Advisory Council Parent-Teacher Organization Orientations Meet-and-Greets ● ● ● ● ● Parent-Teacher Conferences School Events Volunteering Opportunities Parent Information Room Parent Recognition Program Page 6 ● Home Visits ● Communication Methods (school website, social media (e.g., Facebook, Instagram, Twitter, YouTube, Google Business Site), school database, parent mobile application, language translation services, monthly newsletter, phone calls, emails, inperson communications, suggestion boxes) ● Adult Education Classes ● Parent Academy f. If you are an existing operator, describe any enrollment practices, processes, and policies that will differ from the existing school. The enrollment practices, processes, and policies that we will implement at the proposed school will not differ from those currently being implemented at our existing school. g. Complete the enrollment summary and anticipated demographics charts below. Anticipated Demographics African American: 70% Latino: 20% Caucasian: 8% Asian: 2% % of Economically Disadvantaged Students 70% % of Students with disabilities 12% % of English language learners 7% Page 7 1.12 Community Involvement and Parent Engagement (after school opens) In this section: a. Describe student recruitment after the school has opened. How will it differ from preopening recruitment? Once our proposed school opens, we will expand our marketing and recruitment efforts to ensure that we fulfill enrollment targets every year. We will still employ many of the same recruitment strategies as we do during our pre-opening year: developing and distributing marketing materials in languages other than English; visiting community centers and hubs (e.g., faith-based organizations, businesses, feeder schools); placing advertisements; and employing social media. However, after we open, we will shift the focus of many of our recruitment efforts to highlight the school as it exists in operation. More specifically, on our website and social media accounts, we will feature current school events and programming. We will advertise upcoming events, highlight events immediately after they occur, and celebrate the success of past events, creating multiple points of exposure for each. In short, with permission, we will highlight students who are enrolled in our school engaging in school activities so that potential parents and students can appreciate the student experience while attending our school. On our website and every social media account, we will also solicit the contact information of prospective families, enabling us to cultivate a robust database of potential students. In addition to our website (also discussed below), the social media outlets we intend to utilize are: ● School website: We will maintain a comprehensive website that is informational and easy to navigate. Our website will advertise our academic program and upcoming events for students, as well as families and the community, so that prospective students and parents can see the wide range of programming and activities offered by the school. The website will also feature special happenings and recognitions, such as visits from local officials and community members and results from sports and robotics competitions. Additionally, our website will provide potential students and parents with valuable academic information, including access to our State report card, which will showcase and educate prospective students and parents about our school’s success. Our enrollment form will always be prominently featured on our website so that interested students and parents can easily complete and submit the form electronically. ● Facebook: We will leverage our Facebook page to serve as a complement to our school website. We will regularly post upcoming school activities, as well as provide accounts of school events by posting pictures and descriptions as soon as activities unfold so that prospective students and parents can gain a fuller perspective of the student experience while attending our school. We will include hashtags and links to our other social media account(s), as well as to our website, to drive traffic to our other outlets. A direct link to our enrollment form will also be embedded on our page, allowing potential students and parents to easily locate and complete the form in the moment of interest. We will also place advertisements for our school on Facebook, increasing our exposure. ● Twitter: Our Twitter account will dovetail the content contained on our website and posts to our other social media outlets. We will regularly tweet about school events and programming, as well as content related to our school, such as STEM. We will utilize Twitter’s Page 8 streamlined approach to communication to our advantage, posting links to our website and other social media account(s) to drive traffic to other outlets. In our profile, we will also provide direct links to our enrollment form so that interested students and parents can easily access, complete, and submit the form. ● Instagram: We will also advertise our school through postings on Instagram. Like our other social media accounts, we will upload videos and pictures of school activities immediately after they occur to expose prospective students and parents to our event offerings. We will also link our other accounts to our Instagram to direct users through our social media suite and school website. Our enrollment form will be easily accessible to those interacting with our Instagram account. ● YouTube: We will maintain a YouTube channel where we will post videos of school events to attract potential students and parents. We will also utilize YouTube to answer questions; more specifically, we will produce a Frequently Asked Questions (FAQs) video. The FAQs video will feature the commonly-asked questions by students and parents. School staff will answer these questions and direct viewers to resources if they want additional information. We will embed links to our website, enrollment form, and other social media accounts on our YouTube page. ● Google: We have established a Google-verified Google Business Site, on which we will upload pictures of school events and activities, as well as other notable school happenings. We will also publish news about our school on our Goggle site to inform prospective parents and students about our mission, model, and programming. We will also leverage the ability to manage advertisements about our school through our Google site, as well as drive traffic to our other social media accounts via links. Our Google site will also allow us track searches, which will enable us to refine our recruitment plans if analysis of search data deems it necessary. In addition to our website and active social media campaign, we will hold open houses for prospective students and parents to enable them to see our school in operation first hand. Open houses will occur at least seven times a year, mostly during third and fourth quarter. During open houses: potential students and parents will receive a comprehensive tour of the school; will be provided with literature further highlighting and explaining the school; will be given an enrollment form and will be offered support in completing the form; and will have the opportunity to ask any questions. We will also advertise and demonstrate our robust school database and parent mobile application during open houses. We will show parents how they will be able to access information about their child(ren) though our school database and parent mobile application, including upcoming class activities, assignments, and projects, as well as grades and test scores. Additionally, we will demonstrate how behavioral and attendance data will be contained in the database and application, so parents can track their child(ren)’s conduct, as well as be alerted to absences and tardies. Further, we will emphasize how the database will serve as a direct link between teachers and students. Teachers and parents will be able to leave notes for, and send, electronic communications to each other, enabling frequent and fluid communications. Open house participants will be asked to provide some personal information such as name, mailing address, phone number, and email address, which will enable us to keep in contact with Page 9 them after the open house. We will follow-up with attendees via physical and electronic mailings and phone calls to maintain their interest in our school, as well as answer any questions and solicit feedback about our school. Prospective parents and students may also request a tour of the school outside of offered open houses. We will also publish a comprehensive monthly newsletter that will highlight all of the school’s recent past and upcoming events and accomplishments. Newsletters will be disseminated through electronic mailings and postings on our website. All prospective students and parents whose information will be captured in our database, cultivated through the channels described above, will receive newsletters. In addition, we will send newsletters to all currently-enrolled student and parents, staff, Board members, and other school stakeholders, such as community members and organizations to ensure that a wide swath of school stakeholders regularly receive information about our school. Further, we will enlist the support of school stakeholders – staff members working at the school, students attending the school, parents involved with the school, Board members governing the school, and community members and organizations supporting the school. We will encourage this robust group of school stakeholders to advertise our school, through word-of-mouth, engagement with our social media accounts (e.g., Facebook likes, retweets), and sharing of newsletter publications. We will implement a referral program; students currently enrolled in the school will be eligible to participate. Students who refer a student who then completes an enrollment form get a free dress day. Students who refer three students who submit enrollment forms get a free uniform shirt. b. Outline how the school will engage parents and community members in the life of the school (in addition to any proposed governance roles). Explain the plan for building family-school partnerships that strengthen support for learning and encourage parent involvement. Our mission calls for us to prepare students for higher learning in a safe, caring, and collaborative atmosphere. To realize our mission, we will actively engage parents and community members in the life of our school. We will build strong family-school partnerships that will strengthen support for learning and encourage parent involvement through methods such as: ● Parent Board Member: As outlined thoroughly in the Network Governance section, the Board of Directors that governs our schools currently in operation will also serve as the Governing Board of the proposed school. Currently, a parent whose child is enrolled in our existing schools in the Hickory Hill area serves as an active Board member. Additionally, within six months of opening, a parent whose child attends school at our Cordova location will be appointed to the Board. We will have two parents on the Board to ensure that parents are actively engaged in the governance of the school, as well as to enable parent voices to be officially represented in the areas in which we operate. ● Advisory Council: Also explained in detail in the Network Governance section, each school will have an advisory council. In accordance with Tennessee Code § 49-13-109, an advisory school council shall include no fewer than five (5) members and shall include the Principal, at least one (1) parent, and at least one (1) teacher representative. Advisory councils will convene quarterly to discuss needs, identify areas for improvement, pinpoint problems, and Page 10 ● ● ● ● ● recommend solutions. Following every meeting, each advisory council will submit a report detailing the council’s conversations, needs, and recommendations among other pertinent information to the Board. The advisory council offers parents another layer of official representation in the oversight of the school, as well as another opportunity to actively engage in the school’s operations. Parent-Teacher Organization (PTO): Every school will have a Parent-Teacher Organization (PTO) that meets regularly to discuss matters related to the school’s operation and programming. PTO meetings will enable parents to formally convene to discuss ideas, identify concerns, brainstorm solutions, and offer feedback about the operation of the school. The PTO will offer parents the opportunity to form relationships with other parents and with school staff, as well as provide parents with a forum in which they can contribute to the functioning of the school. Orientation: Prior to the start of school, we will hold orientation sessions for parents to orient them to the school building, as well as educate them about the school’s policies and procedures. Parents will also learn about the school’s database and parent mobile application, which is detailed thoroughly below, as well as other communication structures and opportunities to engage with the school, including upcoming family activities and our home visit program. Meet-and-Greet: Parents will be encouraged to attend a meet-and-greet event, which will occur within the first two weeks of school. During this time, parents will meet their child(ren)’s teachers and other school staff and tour the school. The meet-and-greet will also serve as an opportunity to introduce the curricula that will be taught and educational software that will be used, as well as (re)familiarize parents with the school’s policies, website, database, and parent mobile application. Parents will receive support in creating usernames and passwords and logging into the database and downloading and accessing the application – both of which serve as central communication platforms between school and home. Home Visits: We will encourage and compensate our teachers for making visits to the homes of students they serve. Home visits will enable teachers to make authentic connections with their students and students’ families. During home visits, teachers will engage students and families in conversations about the school and about themselves. Teachers will provide strategies and suggest activities in which students and parents can engage together that will reinforce and extend what is learned at school. Teachers will also support parents in using the school’s database and parent mobile application, which serve as the primary communication methods between home and school. Home visits will also act as a source of support when students and their families are facing difficulty such as the loss of a loved one. Communication Methods: We will utilize multiple communication methods to ensure that students and parents are fully informed about school activities. Among these are: ○ School Website: As indicated above, we will maintain a comprehensive website with information about the school’s programming, performance, and events. The school website will be updated regularly to provide timely announcements to students and parents. Links to our social media account(s), school database, parent mobile application download, and newsletter will also be prominently featured on the website. Page 11 ○ Social Media: Also described above, we will utilize social media, including Facebook, Twitter, and Instagram, as means to engage with, and provide timely information to, students and parents. We will post and tweet regularly about upcoming activities so that students and parents are fully informed about, and have ample notice to participate in, school events. We will often post and tweet immediately after events conclude, which allows families to stay informed about activities at which they could not be physically present. We will also embed links to our school website and database on our home page and profile so that users can access and engage with them easily. ○ School Database: Parents will be able to access information about their child(ren) though our school database. Teachers will post upcoming class activities, assignments, and projects, as well as record students’ grades so that parents can receive timely updates about their child(ren)’s progress and achievement. Assessment data will also be housed on the database so that parents can access benchmark and other test scores. Additionally, behavioral and attendance data will be contained in the database so parents can track their child(ren)’s conduct, as well as be alerted to absences and tardies. Further, the database will serve as a direct link between teachers and students. Teachers and parents will be able to leave notes for, and send electronic communications to, each other, enabling frequent and fluid communications. ○ Parent Mobile Application: We will offer an application that can be downloaded so that parents can access information from the database on their mobile devices. The application will allow parents to monitor their child(ren)’s progress; grades, homework assignments, behavioral data, and attendance records can be accessed on the application. In addition, the application will provide important school information such as the school bell schedule, lunch menus and payments, and the school calendar of events. In addition, our newsletter, described below, will be included in the application every week, enabling parents to easily stay informed about, and engaged in, their child(ren)’s educational experience, as well as school events and happenings. ○ RemindMe Application: We will also employ the RemindMe application to remind parents about upcoming events and activities. The application will also enable us to send out announcements so that parents are informed in a timely manner. ○ Language Translation: All of our parents must be informed about, and given opportunity to engage with, the school. We will translate all documents into the languages other than English most commonly spoken at the school. Our website is also equipped with a translation program that allows it to be translated into multiple languages. In addition, at least one front office staff member will be bilingual and fluent in the language other than English spoken most frequently. We will also enlist the services of translators, when necessary, to ensure that all parents can effectively communicate with, and receive communications from, the school. ○ Monthly Newsletter: We will publish a comprehensive monthly newsletter that will highlight all of the school’s recent past and upcoming events and accomplishments. Newsletters will be disseminated through website postings and electronic mailings to all families whose child(ren) attend our school. Parents utilizing the parent mobile application will receive the newsletter via their application every month. Page 12 ○ Phone Calls: We will conduct robocalls to make school-related announcements, as well as inform families about upcoming events. All robo calls will be translated into Spanish. In addition, teachers will make frequent phone calls to the parents of their students to highlight successes, as well as discuss any concerns. Teachers will be required to return parent phone calls within 48 business hours to ensure that parents’ questions, comments, and/or concerns are addressed in a timely manner. ○ Emails: As indicated above, our database streamlines electronic communications between parents and teachers. As with phone calls, teachers will be required to reply to emails within 48 business hours. Emails will be utilized as a means for parents and teachers to quickly and fluidly communicate with each other. ○ In-person Communications: We will welcome parents to visit our school. Parents will be encouraged to make appointments to confer with their child(ren)’s teachers, and school leadership will have an open-door policy for parents. In addition, we will encourage parents and teachers, as well as other school staff, to engage in short conversations during morning drop-off and afternoon dismissal. During this time, teachers and staff will be visible and available to briefly engage with parents. ○ Suggestion Boxes: We will welcome feedback and input so that we can continually improve our school and be responsive to the needs and ideas expressed by parents. We will install a suggestion box in the main lobby of our school. Parents will be encouraged to communicate their opinions, suggestions, and concerns about the school. We will also build a virtual suggestion box on our website, allowing parents to submit their thoughts remotely and electronically. When suggestions are submitted, school leadership will promptly review the suggestion and take appropriate action. ● Parent Teacher Conferences: Conferences will be held at minimum twice a year – once during the first quarter and once during the third quarter. Conferences will enable teachers and parents to discuss academic achievement, behavioral progress, assessment scores, and upcoming curricula. Parents can also use this time to address any concerns or questions. Parents unable to attend will be encouraged to schedule a meeting with their child(ren)’s teachers at another time. ● School Events: Throughout the year, we will hold a number of school events for students and families. Many of these events will be academic in nature, such as curriculum nights, during which teachers and staff will review upcoming curricula with parents so that they are fully informed about what their child(ren) is/are learning. Curriculum nights will allow parents to engage with the skills and content their child(ren) will be expected to master, as well as ask any questions and/or voice any concerns about the material. During this time, teachers will also provide strategies about how parents can support learning of the curricula at home. In addition, we will host multiple social events for families so that staff, students, and parents can come together as a community. Among these events will likely be festivals, food and clothing drives, and dinners and banquets. We will also hold assemblies throughout the year, such as honor roll celebrations, to celebrate students and the school and cultivate school spirit. Further, we will offer events specifically for our parents; these events will enable parents to interact and build relationships with school staff. For example, we plan to host regular Muffins for Moms and Donuts for Dads meetings, allowing parents to form and strengthen relationships with each other and school leadership and staff. Page 13 ● Volunteering Opportunities: All parents will be asked to volunteer upon their child(ren) enrolling in the school. While volunteering will be optional, we will highly encourage it as a means to engage in the school and form meaningful relationships with staff, students, and other parents. Parents will be presented with a wide range of volunteering activities from which to choose, including supporting teachers by making copies, reading with and/or to students, providing instructional support to students, and assisting with field trips. ● Parent Information Room: We understand that not all parents have access to computers and printers or to mobile devices. Accordingly, we will dedicate a space equipped with Internet and outfitted with a kiosk machine, computer, and printer for parents’ use. Parents will be able to access our website, social media platform(s), and database to retrieve information and monitor their child(ren)’s progress. They can print announcements and reports at their convenience. School staff will be available for parents in need of technological assistance in utilizing the parent room. ● Parent Recognition Program: Just as we will celebrate our students’ success and contributions to the school on social media, in newsletters, and during assemblies and other school events, we will recognize parents who are actively engaged and involved in the school. Parents who volunteer for a certain number of hours and who participate in a certain amount of school events and programs – both of which will be exactly determined in the future upon the school’s opening – will receive recognition. More specifically, recognized parents’ names will be published on our school website. We will also host a reception during which recognized parents will be awarded a certificate. Such recognition will encourage other parents to volunteer and participate in school activities and will motivate parents who are active to continue to engage with the school. ● Adult Education Classes: We believe in supporting and empowering our parents. To that end, we will offer a series of language classes and computer classes throughout the school year. Classes will be held once a week for 45 minutes. Language classes will support parents who speak languages other than English in gaining English language proficiency. Computer classes will cover the fundamentals of computer use, as well as how to work in the Google suite and Microsoft Office. For parents who possess more advanced technological skills, classes will support them in earning Apple and Google certifications. ● Parent Academy: In addition to language and computer classes, we will hold a parent academy – a series of educational and inspirational sessions. Topics covered will likely include: How to Help Your Child with Math Homework; Conscious Discipline at Home; Helping Your Child Make Healthy Relationship Choices; How to Stay Involved at the Secondary Level; Healthy Eating Habits; Mentoring; College Preparation and Financial Aid; STEM High School Activities; and Northwest Evaluation Association Measures of Academic Progress (NWEA MAP). We fully believe parents are our partners. Our parent academy will strengthen this partnership, as well as support parents in creating healthy learning environments at home. c. Describe how parents will be informed and educated on all school policies and any commitments or volunteer opportunities the school will seek from, offer to, or require of, parents. As indicated above, we fully appreciate that for our school to be successful, we need to create strong partnerships with parents and engage them in the life of our school. The foundation of Page 14 building these robust partnerships with parents is communication. We must ensure that our parents are fully informed of, and educated about, all school policies and volunteer opportunities. We will accomplish this through initiatives such as: ● Registration: During registration, parents will receive a parent/student handbook that comprehensively outlines all of the school’s policies and procedures. Parents will be required to sign a receipt of acknowledgement that they received, and will abide by, the handbook. During orientation and the meet-and-greet event, time will be dedicated to more thoroughly explaining the policies and procedures detailed in the handbook. Additionally, during the registration process, parents will be asked to complete a volunteer form to indicate volunteering preferences, such as frequency and type of volunteer work. While volunteering will not be mandatory, we will highly encourage parents to volunteer as much as able. ● Parent Student Handbook: Parents will receive, and sign for, a comprehensive parent/student handbook during the registration process. The handbook will explicitly outline the school’s mission and vision, as well as – among others – all the school’s policies and procedures, including expectations for field trips, school visitors, arrival and dismissal, attendance and absences, dress code, technology use, code of conduct, behavioral consequences, and school closure. The parent-student handbook will also be available in languages other than English and will be easily accessible on the school’s website. ● Orientation: Prior to the start of school, we will hold orientation sessions for parents to orient them to the school building, as well as educate them about the school’s policies and procedures as outlined in the parent-student handbook they received during registration. During orientation, parents will be reminded about the ample volunteering opportunities available to them. Parents will also learn about the school’s database and parent mobile application, detailed below – both of which house information about the school’s policies and volunteer opportunities. ● Meet-and-Greet: Parents will be encouraged to attend a meet-and-greet event, which will occur within the first two weeks of school. During this time, parents will meet their child(ren)’s teachers and other school staff and tour the school. The meet-and-greet will also serve as an opportunity to introduce the curricula that will be taught and educational software that will be used, as well as (re)familiarize parents with the school’s policies and procedures as outlined in the parent/student handbook. During the meet-and-greet, teachers will also discuss volunteering opportunities with parents, providing them with their monthly parent volunteer wish list. ● Home Visits: To build relationships with our families, as well as inform them about school policies and volunteer opportunities, we will implement a robust home visit program. Home visits will enable teachers to make authentic connections with their students and students’ families. During home visits, teachers will engage students and families in conversations about themselves, as well as review school policies and procedures and volunteering. Teachers will provide strategies and suggest activities in which students and parents can engage together that reinforce and extend what is learned at school. Teachers will also support parents in using the school’s database and parent mobile application (described below), which will serve as the primary communication methods between home and school. ● School Database: Parents will be able to access information about the school and their child(ren) though our school database. Teachers will post upcoming class activities, Page 15 ● ● ● ● ● ● assignments, and projects, as well as record students’ grades so that parents can receive timely updates about their child(ren)’s progress and achievement. Assessment data will also be housed on the database, so that parents can access benchmark and other test scores. Additionally, behavioral and attendance data will be contained in the database, so parents can track their child(ren)’s conduct, as well as be alerted to absences and tardies. Mobile Parent Application: We will offer an application that can be downloaded so that parents can access information from the database on their mobile devices. The application will allow parents to monitor their child(ren)’s progress; grades, homework assignments, behavioral data, and attendance records can be accessed on the application. In addition, the application will provide important school information, such as the school bell schedule, lunch menus and payments, and the school calendar of events. In addition, our newsletter, described below, will be included in the application every week, enabling parents to easily stay informed about and engaged in their child(ren)’s educational experience, as well as school policies and events. School Website: As indicated above, we will maintain a comprehensive website with information about the school’s policies, procedures, programming, performance, and events. The school website will be updated regularly to provide timely announcements to students and parents. Links to our social media account(s), school database, parent mobile application download, and newsletter will also be prominently featured on the website so that parents can easily stay informed about the school. Social Media: Also described above, we will utilize social media, including Facebook, Twitter, and Instagram as means to engage with, and provide timely information to, students and parents. We will post and tweet regularly about parent volunteer opportunities so that parents can stay abreast of the most current opportunities to help in the school. We will also embed links to our school website and database on our home page and profile so that users can access and engage with them easily. Board Meeting Agendas and Minutes: Following every Board meeting, the meeting agenda and minutes will be promptly uploaded on to our school website so that parents can access them, and be informed about, Board discussions and decisions. Parents may request hard copies of all Board agendas and minutes. Parents will also be encouraged to physically attend Board meetings as a means to stay informed about the school. Advisory Council Reports: Also explained in detail in the Network Governance section, each school will have an advisory council. In accordance with Tennessee Code § 49-13-109, an advisory school council shall include no fewer than five (5) members and shall include the Principal, at least one (1) parent, and at least one (1) teacher representative. Advisory councils will convene quarterly to discuss needs, identify areas for improvement, pinpoint problems, and recommend solutions. Following every meeting, each advisory council will submit a report detailing the council’s conversations, needs, and recommendations among other pertinent information to the Board. These reports will be available to parents not serving on the council so that they can stay informed about discussions regarding and proposed modifications to the school’s policies and procedures. PTO Membership and Meeting Minutes: Every school will have a Parent-Teacher Organization (PTO) that meets regularly to discuss matters related to the school’s operation and programming. Parents will be encouraged to volunteer to participate on the PTO. PTO Page 16 meetings will enable parents to formally convene to discuss ideas, identify concerns, brainstorm solutions, and offer feedback about the operation of the school. For parents who are unable to participate on the PTO, meeting minutes will be uploaded to the school’s website so that all parents can be informed of discussions about and suggested changes to school policies and procedures. d. If already identified, describe any programs you will offer to parents and/or the community and how they may benefit students and support the school mission and vision. Our mission entails preparing students for higher learning in a safe, caring, and collaborative atmosphere, and our vision revolves around enabling students to succeed in secondary school, college, and in the workplace, and to provide an option for students to enter STEM careers after college completion. As indicated throughout this section, we firmly believe creating strong partnerships with parents is critical to realizing our mission and vision and, ultimately, to our school’s success. Robust parent partnerships better ensure that student learning and achievement is reinforced at home. As a means to cultivate these partnerships, as well as provide a source of support to parents in expanding their own skill sets and, in their efforts to support their child(ren)’s academic and social-emotional development and achievement at home, we plan to offer the following the programs: ● Adult Education Classes: We will offer a series of language classes and computer classes throughout the school year. Classes will be held once a week for 45 minutes. Language classes will support parents who speak languages other than English in gaining English language proficiency. Computer classes will cover the fundamentals of computer use, as well as how to work in the Google suite and Microsoft Office. For parents who possess more advanced technological skills, classes will support them in earning Apple and Google certifications. Since our school will have a heavy STEM focus, developing parents’ technology skills will, in turn, help them support their child(ren)’s mastery of STEM concepts. ● Parent Academy: In addition to language and computer classes, we will hold a parent academy – a series of educational and inspirational sessions. Topics covered will likely include: How to Help Your Child with Math Homework; Conscious Discipline at Home; Helping Your Child Make Healthy Relationship Choices; How to Stay Involved at the Secondary Level; Healthy Eating Habits; Mentoring; College Preparation and Financial Aid; STEM High School Activities; and Northwest Evaluation Association Measures of Academic Progress (NWEA MAP). We fully believe parents are our partners. Our parent academy will strengthen this partnership, as well as support parents in creating healthy learning environments at home. ● Thanksgiving Food Drive: While our mission and vision are largely academic in nature, our mission calls for us cultivate a caring environment. We will hold an annual food drive during the month of November to collect food items for families in need. The school will provide turkeys to every family who cannot otherwise afford one. We believe that ensuring every family enjoys a Thanksgiving dinner will contribute to the creation of a caring environment, strengthening the bond between home and school. Page 17 1.13 Existing Academic Plan (for existing operators) In this section: a. Describe any key academic plan features for the replication school that will differ from the operator’s existing schools. We do not intend to implement any key academic plan features that will differ from our existing school. b. Explain why you would implement these different features, any new resources they would require, and the rationale for the variation in approach. Not applicable. Page 18 1.14 Performance Management (for existing operators) In this section: a. If different than the original application, describe any mission-specific educational goals and targets that the organization will have. State goals clearly in terms of the measures or assessments you plan to use. Since submitting our original middle and high school application submitted in 2009 and our original elementary school application submitted in 2015, we have refined our mission-specific educational goals and targets for our organization. They are: Goal Method of Measurement Academic Achievement and Growth Math, Reading, Science, TNReady Social Studies Achievement & Growth SCS School Performance Framework Frequency Measurable Student Outcomes 1x/year Proficiency rates at each grade level and subject will exceed the district average by at least 10 percentage points each academic year. At each grade level and subject, 50% of the students who have been enrolled in an MSE school for three consecutive years will be proficient. All reporting categories (grades/subjects) will show significant growth, with a combined TVAAS score of a 3 or higher each academic year. 60% of students will meet growth targets. Students enrolled in the school for at least three years will score at the 60th percentile or higher. All MSE schools will score at least 3.5 out of 5 on SCS’ School Performance Framework (which measures academic achievement and growth, college readiness, and school climate). TVAAS 1x/year NWEA MAP 3x/year SCS School 1x/year Performance scoring rubrics High School Graduation and College Readiness College-Ready Early PostSecondary Opportunities (EPSO), ACT, Armed 1x/year 50% of seniors will graduate college-ready. Page 19 Goal AP and College Courses Method of Frequency Measurement Services Vocational Aptitude Battery (ASVAB) Enrollment Numbers 1x/year AP Exams AP Test 1x/year College Admissions HS Graduation ACT Student Information System (SIS) SIS/College Tracker 1x/year 1x/year 1x/year 90% of graduating students will matriculate to a postsecondary institution. SIS SIS SIS SIS HR Files 1x/year 1x/year 1x/year 1x/year 1x/year >97% Elementary: <3%; High School: <10% Elementary: 0%; High School: <1% >90% >90% Budget Monthly Audit Third Party Audit 1x/year SCS Operations and Financial Scorecards SCS Report 1x/year MSE will demonstrate fiscal sustainability and stability through efficient use and monitoring of resources and develop and maintain balanced budgets each year. MSE will ensure that an annual audit is conducted by an independent certified public accountant and contains no material findings. MSE will score at least a 4 out of 5 on both SCS’ Operations and Financial Scorecard each year. Post-secondary Matriculation School Climate Attendance Suspensions Expulsions Student Retention Staff Retention Financial Goals Financials Measurable Student Outcomes 40% of students will be enrolled in at least one AP or dual enrollment course. The percentage of students passing an AP exam with a score of 3 or above will increase by 5% each year. 40% of students will score at least a 21 on the ACT. 95% of MSE seniors will graduate each year. Page 20 b. Explain how the organization will measure and evaluate academic progress of individual schools within your network throughout the school year. We will measure and evaluate academic progress of individual schools within our network throughout the school year in the following ways: ● Benchmark Assessment Scores: Students are assessed every six weeks in contents and on standards that are tested on State-mandated assessments. The same benchmark assessments are administered at each school, which allows for comparative analysis across schools and accurate monitoring and evaluation of individual schools. Leadership creates all benchmark assessments to ensure every test aligns with, and accurately gauges, students’ levels of proficiency and progress toward mastery of standards. Further, we have created a virtual test center, which allows test results to be disaggregated to the question and standard level, as well as by subpopulation, cohort, and individual student levels. Coupled, our benchmark assessment system and ability to disaggregate benchmark data through our test center enables us to closely and accurately monitor and evaluate the academic progress of all students enrolled in each of our schools throughout the year. ● Northwest Evaluation Association Measures of Academic Progress (NWEA MAP) Growth Results: All students take NWEA MAP assessments three times year. NWEA MAP is highly regarded and is given in many SCS schools, as well as in schools around the nation. NWEA MAP measures students’ proficiency in mathematics, science, reading, and language arts, identifying each student’s individual proficiency levels, as well as rate of growth. Since NWEA MAP is a nationally-normed assessment and all students enrolled in schools across our network will be taking it, we can monitor proficiency levels and rates of growth to measure and evaluate the academic progress of individual schools within our network. ● Teacher Observation Scores: Every teacher is assigned a coach who conducts frequent informal observations using a standardized tool. In addition to coaches, school-level leadership also completes formal and informal observations on a regular basis. All observers norm and calibrate throughout the year to ensure consistency of scoring across the network. Additionally, coaches and school-level leadership regularly meet to analyze observation data to identify trends, areas of strength, and areas of opportunity – the results of which are then presented to network-level leadership. Every formal observation is scored and documented in TNCompass so that network leadership has access to, and can closely monitor, teachers’ observation scores across the network. The database enables network-level leadership to compare observation scores and/or averages at the school level and grade level, as well as by content and/or specific class. Since the provision of high-quality instruction stands as the primary determinant of positive academic outcomes, the systems and mechanisms we have established allow us to closely monitor, as well as respond to, the quality of instruction being provided to our students across our network of schools throughout the school year. ● Attendance Rates: Students cannot learn if they do not attend school. As such, network-level leadership vigorously monitors the attendance rates at each school in the network. Attendance is checked on a daily basis; staff also call the homes of absent students every day. If students are chronically absent or otherwise flagged for excessive absences, the Principal and/or counselor meets with the student’s parents to determine the root cause of the absences. Once identified, support plans are collaboratively created and implemented to Page 21 ensure that students attend school. At the network-level, attendance data is housed in PowerSchool and our database is examined weekly. If attendance rates are cause for concern, student attendance data is disaggregated at the subpopulation, cohort, and individual student levels to identify, and respond to, trends. Network-level leadership works closely with school-level leadership to monitor attendance rates as a means to monitor academic progress throughout the school year. c. Describe the organization’s approach to academic underperformance for schools that fall short of student academic achievement expectations or goals at the school-wide, classroom, or individual student level. Underperformance at the school-wide level. If a school underperforms academically as a whole, we will have already flagged the school as being at-risk for underperformance prior to the end of the school year based on the monitoring and evaluation of benchmark scores, NWEA MAP results, teacher observation scores, and/or attendance rates throughout the year. Upon being flagged for underperformance, network-level leadership will engage in a root cause analysis and needs assessment to pinpoint the specific areas and reasons for, as well as remedies to, underperformance. Since the Principal is responsible for, and held accountable to, the academic success of the school, once identified, the Executive Director, in collaboration with the Principal, will create a specific growth plan to remedy underperformance, which will include the following steps and actions: ● Design a Growth Plan - the design of the growth plan will include the following: o Outline specific and measurable actions, expectations, and desired outcomes o Detail resources to be allocated as supports for growth (e.g., coaching, targeted professional development, assignment of a mentor) o Include a detailed timeline for progress monitoring o Receive formal approval from the Executive Director ● Implement the Growth Plan - the implementation of the growth plan will entail the following: o Monitor closely the implementation of, as well as progress made toward, the plan by the Executive Director o Adhere to the plan’s timeline for implementation, monitoring, and progress made ● Evaluate Employment Status – the evaluation of employment status will encompass the following: o Consider employment status if monitoring reveals insufficient progress has been made in accordance with the determined timeline o Terminate employment only after exhausting every avenue and effort to remedy unsatisfactory performance Underperformance at the classroom level. Since we administer benchmark assessments every six weeks and frequently conduct classroom observations – the results of which are analyzed and uploaded to a network-wide database – as well as engage in regular conversations at the school and network level about instructional trends, strengths, and needs, we will have already flagged a classroom in danger of not meeting student academic achievement expectations or goals prior to the end of the school year. Classroom teachers are responsible for, and held accountable to, the academic success of their students. As such, if a classroom teacher is identified as being atrisk of not meeting academic expectations, the Principal, with support from the Executive Page 22 Director, will create a specific improvement plan to remedy underperformance, which will include the following steps and actions: ● Create an Improvement Plan - the creation of an improvement plan will entail the following: o Outline specific and measurable actions, expectations, and desired outcomes o Detail resources to be allocated as supports for growth (e.g., more frequent coaching, targeted professional development) o Include a detailed timeline for progress monitoring o Receive formal approval from the Principal ● Implement the Improvement Plan - the implementation of the implementation plan will involve the following: o Monitor closely the implementation of, as well as progress made toward, the plan by the academic coordinator o Adhere to the plan’s timeline for implementation, monitoring, and progress made ● Evaluate Employment Status – the evaluation of employment status will encompass the following: o Consider employment status if monitoring reveals insufficient progress has been made in accordance with the determined timeline o Terminate employment only after exhausting every avenue and effort to remedy the unsatisfactory performance Underperformance at the individual student level. As indicated above, we will closely monitor individual student’s indicators of, and progress toward, meeting academic expectations and goals throughout the school year. If at any time benchmark results, NWEA MAP scores, and/or attendance rates, as well as other sources of academic data, indicate that a student is underperforming and at risk or struggling to achieve positive academic outcomes, we will immediately do the following: ● Assign Individualized Tutoring: As indicated above, students are assessed through benchmark tests every six weeks in contents and standards that are tested by Statemandated assessments. After each benchmark administration, students’ scores are analyzed; students whose benchmark results indicate that they require more support are assigned to tutoring. Based on individual students’ needs, students are either tutored during the school day during pull-out sessions that typically occur during electives, after school, or on the weekend during Saturday tutoring, which occurs mid-January through mid-April. ● Refer to Response to Instruction and Intervention (RtI2): We implement a robust RtI2 program to provide effective, individualized support to students who are identified as struggling and/or at risk of underperforming. More specifically, in the event that Tier I instruction and/or individualized tutoring is not meeting the needs of some students, they are referred to the Student Support Team (SST). The SST then convenes, analyzes multiple sources of data, examines the effectiveness of, and progress made through, previously applied supports and interventions, and prescribes appropriate Tier II interventions. The SST monitors the implementation and effectiveness of Tier II interventions; if adequate progress is not made, students will receive Tier III supports, which is also closely progress-monitored. ● Evaluate for Specialized Services: In the event that RtI2 interventions and supports do not result in sufficient academic progress and/or at students’ parents or guardians request, Page 23 students are referred for testing to determine if they qualify for specialized services. If evaluation results indicate a need for specialized services, the Special Education Coordinator will work closely with school special education staff to create and implement Individualized Educational Plans (IEPs) to ensure that students receive all necessary and mandated supports and services. d. Describe the organization’s plans to monitor performance of the portfolio as a whole. What actions will you take if the network as a whole fails to meet goals? Plans to monitor performance. We will monitor performance of the portfolio as a whole through the following measures academic, operational, and financial measures and targets. ● Academic Measures: o SCS School Performance Framework (SPF) Rankings: We have set a minimum target of 3.5 on our annual SPF rankings. o State-Mandated Assessment Results: We expect that the percentage of students scoring on-track plus mastered on State-mandated assessments will meet our Annual Measurable Objectives (AMOs) every year. Proficiency rates at each grade level and subject will exceed the district average by at least 10 percentage points each academic year. At each grade level and subject, 50% of the students who have been enrolled in an MSE school for three consecutive years will be proficient. o Tennessee Value-Added Assessment System (TVAAS) Scores: We expect that our combined TVAAS score is at minimum a 3 each year. o ACT Results: We established the target of at least an 18.8 average ACT score each year, with 40% of students scoring at least a 21. o Graduation Rates: We have set 95% as our target annual graduation rate. ● Operational Measures: o Student Retention Rates: We have established a 90% student retention rate as our annual minimum target. o Staff Retention Rates: To be considered satisfactory, we must retain at least 90% of our staff every year. o Teacher Recruitment: We expect that our recruitment efforts result in every vacant position being filled by high-qualified, high-quality candidates. o Survey Results: We have established a 90% satisfaction response rate for all stakeholder groups surveyed. ● Financial Measures: o Budget: We will demonstrate fiscal sustainability and stability through efficient use and monitoring of resources and develop and maintain balanced budgets each year. o Audit: We will ensure that an annual audit is conducted by an independent certified public accountant and contains no material findings. o SCS Operations and Financial Scorecards: We will score at least a 4 out of 5 on both SCS’ Operations and Financial Scorecard each year. Actions Taken if the Network Fails to Meet Goals. If the network as a whole fails to meet goals, we will have already flagged the network’s collective underperformance prior to the end of the school year based on the monitoring and evaluation of the academic, operational, and financial measures described above in detail. Upon being flagged for underperformance, network-level Page 24 leadership, with guidance and oversight from the Board, will engage in a root cause analysis and needs assessment to pinpoint the specific areas and reasons for, as well as remedies to, underperformance. Since the Executive Director is responsible for, and held accountable to, the success of the network, once identified and analyzed, the Board will act swiftly, enacting steps such as: ● Design a Corrective Action Plan - the design of the corrective action plan will include the following: o Outline a needs assessment and root cause analysis, as well as specific and measurable actions, expectations, and desired outcomes o Include a detailed timeline for progress monitoring o Receive formal approval from the Board of Directors ● Implement the Corrective Action Plan - the implementation of the corrective action plan will entail the following: o Monitor closely the implementation of, as well as progress made toward, the plan by the Board of Directors o Adhere to the plan’s timeline for implementation, monitoring, and progress made ● Evaluate Employment Status - the evaluation of employment status will encompass the following: o Consider employment status if monitoring reveals insufficient progress has been made in accordance with the determined timeline o Terminate employment only after exhausting every avenue and effort to remedy unsatisfactory performance e. Discuss how the organization assesses its readiness to grow and under what circumstances the organization will delay or modify its growth plan. Readiness to Grow. We assessed our readiness to grow based on three primary factors: our track record of consistent success academically, operationally, and financially as described below: ● Academic Success: As explained throughout this section, we have consistently been academically successful since 2014 as evidenced by the following measures and indicators: o SCS School Performance Framework Ranking: On SCS’ School Performance Framework in 2017-18, we ranked #12 of 82 middle and high schools in the district, and #8 of 42 high schools. o State-Mandated Assessment Results: Since opening, we have consistently improved our State-mandated assessment scores. Further, our scores have been in the top 10% of all SCS since 2014. o Tennessee Value-Added Assessment System (TVAAS) Scores: We have consistently achieved strong TVAAS scores over the past 8 years, achieving a level 4 or 5 in seven of the last eight years. o ACT Results: We have significantly increased our ACT average score over the past 5 years (from 13.8 in 2014 to 18.8 in 2018). We are in the top quartile of all SCS high schools for ACT average. We also rank #5 among all SCS high schools in terms of the percentage of graduates who are college-ready. These successes contributed to MSE being recognized by US News and World Report, which ranked us the #1 charter high school in Tennessee and #26 among all high schools in the State. Page 25 o Graduation Rates: Since our first graduating class in 2014, we have consistently graduated nearly 100% of seniors. More specifically, we achieved graduation rates of 100% from 2014-16 as well as in 2018, and a 98% graduation rate in 2017. Further, in 2018, 100% of graduates were accepted into a 4-year college, the majority of whom participated in the TN Promise Program and collectively earned more than $6M in scholarships. o SCS Operational Scorecard: MSE received the highest operational scorecard among all charter schools in 2016 2, 2017 3, and 2018 4. o Extracurricular Offerings: We believe that extracurricular activities contribute to our students’ success and positive learning outcomes. Accordingly, we have successfully established numerous extracurricular activities for students, providing them with the opportunity to participate in a number of sports, including volleyball, basketball, soccer, track, cross-country, baseball, softball, bowling, and cheerleading. Participation in athletics position students to gain critical skills that translate to the classroom, including collaboration, cooperation, and teamwork. We also have multiple clubs that students may join such as Drama, Robotics, Math Counts, Science Olympiad, National Junior Honor Society, National Honor Society, Student Council, Chess, Board Games, and Bingo. Like sports, clubs encourage students to collaborate and work together. In addition, clubs reinforce and extend academic learning; for example, students in the robotics club apply principles and concepts learned during their mathematics, science, and technology classes. ● Operational Success: We have a solid history of operational success since our organization’s establishment in 2010 as indicated by the following measures and indicators: o Student Retention Rates: We have historically retained the vast majority of our students. More specifically, we have maintained an approximate 90% student retention rate from year-to-year – one of the highest in the district. o Staff Retention Rates: For the past five years, our average staff retention rate is 85%, which, coupled with consistently positive staff survey results, indicates that our staff believes and is invested in our school. o Teacher Recruitment: As explained thoroughly in the Personnel/Human Capital – Staffing Plans, Hiring, Management, and Evaluation section, we have developed and implemented comprehensive teacher recruitment plans. Our recruitment efforts have consistently resulted in the hiring of high-quality teachers in both of our schools currently in operation, as evidenced by our consistently high TVAAS scores. o Staff Development: We have successfully implemented a program entitled, “Grow Your Own Administration” at our two schools currently in operation. The program targets teachers who have expressed interest in building capacity around leadership skills, indicated the desire to transition to administration in the future, and have at least two years of teaching experience with track records of success educating students and working with parents. Once identified, staff will complete a formal tuition and service 2 http://www.scsk12.org/calendar/files/2016/2016-Charter-Report.pdf http://www.scsk12.org/charter/files/2017/2017-CHARTER-ANNUAL-REPORT.pdf 4 http://www.scsk12.org/charter/files/2018/2018-CHARTER-REPORT.pdf 3 Page 26 o o o o agreement, and school leadership will work with candidates to pinpoint the leadership programs best suited for their current skill sets and desired leadership outcomes and roles. Once candidates are enrolled in leadership programs, MSE will reimburse tuition of up to $10,000 per year for up to three years. To date, six staff members have successfully completed the program, and five more are currently participating in the program. We intend to utilize graduates of the program in key leadership roles at our proposed school. Since our proposed school will replicate the exact grade structure and focus of our existing schools, these future leaders have valuable, extensive experience with our mission, vision, model, academic and cultural programming, policies, and procedures. Such institutional knowledge and experience coupled with the skills learned through the successful completion of their leadership programs will better ensure the smooth opening and operation of our school. Virtual Test Center: We created an electronic test center that enables teachers to enter tests and have scantrons created and graded by the center. The center allows teachers to assign standards to every question. The center provides teachers with easy access to disaggregated data to the question and standard level, as well as by subpopulation, cohort, and individual student levels, to inform upcoming instructional plans. Providing our teachers with the ability to disaggregate data in multiple ways and student groupings has cultivated a robust culture of data-driven instruction, which has greatly contributed to our success. School Database: We created a comprehensive database that successfully enables parents to access information about their child(ren). Teachers post upcoming class activities, assignments, and projects, as well as record students’ grades so that parents can receive timely updates about their child(ren)’s progress and achievement. Assessment data are also housed on the database, so that parents can access benchmark and other test scores. Additionally, behavioral and attendance data is contained in the database, so parents can track their child(ren)’s conduct, as well as be alerted to absences and tardies. Further, the database serves as a direct link between teachers and students. Teachers and parents leave notes for and send electronic communications to each other, enabling frequent and fluid communications. One-hundred percent of our parents have completed the registration process to access our database, and 70% use it at least once a week. Parent Mobile Application: We offer an application that can be downloaded so that parents can access information from the database on their mobile devices. The application allows parents to monitor their child(ren)’s progress as grades, homework assignments, behavioral data, and attendance records can be accessed on the application. In addition, the application provides important school information, such as the school bell schedule, lunch menus and payments, and the school calendar of events. In addition, our newsletter, described below, is included in the application every month, enabling parents to easily stay informed about, and engaged in, their child(ren)’s educational experience, as well as school events and happenings. Survey Results: We administer surveys to our staff, parents, and students every year to collect qualitative data about the state of the school. Surveys ask stakeholders to provide input around, as well as rate, various aspects of our school, including leadership, the Page 27 academic program, and culture and climate, among other indicators. Survey data consistently indicates that staff, parents, and students approve of, and enjoy, our school. ● Financial Success: Since our organization’s inception in 2010, we have maintained a solid track record of financial success as evidenced by the following indicators and measures: o Budget Surplus: MSE has achieved a budget surplus every year since its founding in 2010. o Strong Balance Sheet: The balance sheet is strong and reflects that the organization has more than 60 days of cash on hand. o Clean Audits: MSE has received clean audits every year since inception. o SCS Financial Scorecard: MSE scored a 4.5 out of 5 on SCS’ Financial Scorecard, indicating strong financial health per the following: ▪ Clean and timely audit ▪ Timely submission of budget and financial reports to authorizer ▪ Timely filing of tax return ▪ Healthy financial ratios Circumstances to Delay or Modify Growth Plans. While we do not intend to grow beyond the two schools that we are proposing in separate charter applications this year, we have established the following thresholds to ensure that our network maintains academic, operational, and financial success. In the event that we decide to expand our network in the future, these thresholds will also serve to inform us about the viability of expansion. Accordingly, if we were planning to expand, we will delay or modify our growth plan under the following circumstances: ● Academic Circumstances: In the event that our academic performance drops over multiple consecutive years, we will likely delay or modify growth plans. The measures below specify the outcomes that would result in delay or modification: o SCS School Performance Framework (SPF) Rankings: Not meeting our target of 3.5 on our annual SPF rankings for 2 consecutive years. o State-Mandated Assessment Results: Not achieving our Annual Measurable Objective (AMO) for 2 consecutive years. o Tennessee Value-Added Assessment System (TVAAS) Scores: Not earning a minimum 3 combined TVAAS score for each tested subject area for 2 consecutive years. o ACT Results: Not achieving our target of at least an 18.8 average ACT score for 2 consecutive years. o Graduation Rates: Not achieving a graduation rate of 95% for 2 consecutive years. ● Operational Circumstances: If factors contributing to our operational success begin to underperform, we would likely delay or modify growth plans as indicated below: o Student Retention Rates: In the unlikely event that our student retention rate dropped below 80% for 2 consecutive years, we would re-examine our growth plans until we recovered and stabilized our retention rates. o Staff Retention Rates: If our staff retention rates fell below 80% for 2 consecutive years, we would modify our growth plans to identify, analyze, and remediate the causes contributing to declining staff retention. o Staff Recruitment: We have a robust teacher recruitment program as outlined in the Personnel/Human Capital – Staffing Plans, Hiring, Management, and Evaluation section. Our recruitment plans have consistently proved successful year-after-year; we have Page 28 consistently hired high-quality staff to fill all instructional positions as they become vacant. However, in the event that our recruitment efforts do not produce a pool of highly-qualified candidates from which to hire, resulting in multiple instructional vacancies, we would examine our growth plans and delay and modify, as needed, to allow us to examine and adjust our recruitment program to ensure that we are able to attract and hire high-quality teachers to fill all needed positions. o Staff Development: As described above, we have implemented a “Grow Your Own Administration” program, from which six staff members have graduated. These graduates will be strategically placed in leadership roles to leverage their institutional knowledge of, and experience with, our mission, vision, academic and cultural programming, and general operation of the school and network. In the unlikely event that these teachers decided that they do not want to assume the leadership roles for which they are slated, we would analyze our growth plan and delay and modify, as needed, to secure highlyqualified candidates to fill leadership positions within the school and network. o Survey Results: We administer surveys to our staff, parents, and students every year to collect qualitative data about the state of the school. Surveys ask stakeholders to provide input around, as well as rate, various aspects of our school, including leadership, the academic program, and culture and climate, among other indicators. Survey data consistently indicates that staff, parents, and students approve of, and enjoy, our school. ● Financial Circumstances: If factors contributing to our financial success were to decline and underperform, we would likely delay or modify our growth as indicated below: o Budget Surplus: If we did not maintain a surplus for two consecutive years, we would likely delay or modify our growth plans to analyze financial projections and implement any needed allocation adjustments to ensure the financial sustainability of the organization. o Strong Balance Sheet: If we did not have at least 60 days of cash of hand, we would likely delay growth to build a stronger financial foundation for growth. o Clean Audits: If we did not receive a clean audit, we would likely delay or modify our growth plan to implement any and all needed solutions to remedy all adverse audit findings. o High Fiscal Scorecard Rating: If we do not receive a minimum score of 4 on SCS’ Fiscal Performance Scorecard for 2 consecutive years, we would likely delay or modify our growth plans to identify, analyze, and remediate the causes contributing to declining scorecard scores. Page 29 Section 2: Operations Plan Design and Capacity Section 2.11 Network Vision, Growth Plan, & Capacity (a) Describe the network’s strategic vision, desired impact, and five-year growth plan for developing new schools in Tennessee. Include the following information: proposed years of opening; number and types of schools; any pending applications; all currently targeted markets/communities and criteria for selecting them; and projected enrollments. Memphis School of Excellence’s strategic vision is to enable students to succeed in secondary school, college and in the workplace, and to provide an option for students to enter Science, Technology, Engineering, and Math (STEM) careers after college completion. The organization is seeking to create two separate K-12 feeder patterns in the city: Hickory Hill, where the organization is currently operating a K-5 elementary charter and a grades 6-12 middle and high school charter; and Cordova, where the organization is planning to open a new K-5 elementary charter and a new grades 6-12 middle and high school charter. MSE is submitting two charter applications to Shelby County Schools by April 1, 2019 to open these two new charter schools in the Cordova area in 2020. The rationale for selecting the Cordova community where the proposed schools will locate revolves around helping to alleviate the problem of over-enrollment of the public schools currently in operation in that area and offering additional high-quality options to students and families in Cordova -- particularly high-quality options with a STEM focus. The Cordova area of Memphis has experienced rapid commercial and residential growth, which has yet to slow. Continued growth of both businesses and households is predicted to further populate the Cordova neighborhood in the upcoming years. While commercial facilities and housing developments have been built in response to this growth, the creation of enough new schools to accommodate the growing number of school-aged children, as well as provide families with school choice, has not kept pace with demand. What’s more, while a number of public schools in the Cordova area are performing well, some are not. Two elementary schools in the area received a TVAAS composite score of 1 (the lowest rating); both of the middle schools in the Cordova area are underperforming the district and State in mathematics, with one of the middle schools also receiving a TVAAS composite score of 1. Also, the only high school in the area (Cordova High School) was significantly below the district and State’s average for ELA and mathematics proficiency and earned a TVAAS composite score of 1. MSE believes that it will provide additional high-quality options in the Cordova area -- given the organization’s strong academic track record to date. ● On SCS’ School Performance Framework (SPF) in 2017-18, MSE ranked #12 of 82 middle and high schools in the district and #8 of 42 high schools across SCS. ● In 2016-17, MSE was ranked #4 among all the district’s high schools on the SPF. ● In math and reading/language arts proficiency, MSE has performed in the top 20% of all middle and high schools in the district over the past two academic years. Page 30 ● MSE has consistently achieved strong TVAAS scores (Level 4 or 5 in seven of the last eight years). ● Since its first high school graduating class in 2014, the school has graduated nearly 100% of its students each year and almost 100% of its graduates have been accepted into postsecondary institutions. During that same timeframe, the school’s ACT Scores have improved from 13.8 to 18.8. While MSE’s current elementary school in Hickory Hill does not yet have State tests results, it replicates the best practices of the middle and high school; MSE elementary students showed great improvements on school benchmark tests during the 2017-18 school year. After the growth of two new charter schools in Cordova in 2020, Memphis School of Excellence will be serving approximately 1,700 students in the Hickory Hill and Cordova areas and graduating each year more than 125 students who will be prepared for college and STEM-related fields. MSE does not anticipate expanding further within the next five years. School Opening and Enrollment Summary School Year Grade Opened structure (at full capacity) Enrollment 2019 - 2020 - 2021 - 2022 – 2023 2020 2021 2022 2023 2024 MSE Middle and High 2010 6-12 485 485 513 513 513 MSE Elementary 2017 K-5 286 372 372 372 372 MSE Elementary Cordova 2020 K-5 0 190 260 285 310 MSE Middle and High Cordova 2020 K-5 0 225 300 375 450 (b) If the existing portfolio or growth plan includes schools in other states, explain specifically how Tennessee fits into the overall growth plan. Not applicable. (c) Provide evidence of organizational capacity to open and operate high quality schools in Tennessee and elsewhere in accordance with the overall growth plan. Outline specific timelines for building or deploying organizational capacity to support the proposed schools. To prepare for the growth of additional schools, Memphis School of Excellence is creating a network-level team that will ensure the Network and each of its schools has the tools, resources, Page 31 experience, and expertise to effectively implement the academic program and achieve the organization’s goals, as well as effectively manage operations and financial resources. These positions, their responsibilities, and start year at the network-level are included in the following table. Position Start Year (at Network Level) Responsibilities Executive Director 2019-20 (position begins at the Network level one year prior to the opening of the Cordova Elementary and Middle/High campuses) The Executive Director is responsible for making high-level strategic decisions, including the oversight and hiring of networklevel leadership and Principals, the establishment of organization-wide expectations, and implementation of organizational systems, business processes, and academic and cultural programming—all of which must align with, and support, MSE’s mission and vision. The Executive Director also manages vendor relations, contract oversight, food service, facilities, and security and safety systems. Directors of Operations 2019-20 (position begins at the Network level one year prior to the opening of the Cordova Elementary and Middle/High campuses) The Director of Operations provides leadership and robust support around operational aspects across the network, including oversight of student and parent engagement, technology, counseling programs, 504 plans, and athletic and sports programming. The Director of Operations also assists the Executive Director with the oversight of school Principals and the Director of Academics. In addition to providing support to, and receiving training from, the Executive Director, the Director of Operations supports the Technology Coordinator and Human Resources and supports the Federal Programs Manager to ensure that systems and policies related to technological infrastructure, human capital, and federal programs operate effectively and comply with all local, State, and federal laws, regulations, and statutes. Page 32 Director of Academics 2019-20 (position begins at the Network level one year prior to the opening of the Cordova Elementary and Middle/High campuses) The Director of Academics is responsible for overseeing, implementing, and supporting the network’s academic programming, including instruction, assessment, and professional development. While the Executive Director is ultimately responsible for the success of the network, as well as the success of the individual schools operating across the network, the Director of Academics is also held accountable for the academic performance of each school. The Director of Academics oversees the network’s instructional coaches, as well as manages the Academic Coordinators at the school level. Additionally, the Director of Academics is responsible for the oversight of Response to Instruction and Intervention (RtI2), special education, English language learner, and gifted and talented programming Director of Finance 2021-22 (position begins at the networklevel upon the opening of the Cordova Elementary and Middle/High campuses) The Director of Finance is responsible for the financial health and sustainability of the network. The Director of Finance oversees the financial aspects of the network, including budget development, payroll preparation, accounts payable and receivable, and grant reimbursements. The Director of Finance also reports monthly to the Tennessee Consolidated Retirement System. The Director of Finance works closely with the Executive Director to ensure that budget allocations reflect and support the operational and academic needs of the network. The Director of Finance, in collaboration with the Executive Director, also works with Principals, supporting them in school-based budgeting and financial decisions. Technology Coordinator 2019-20 (position begins at the Network level one year prior to the opening of the Cordova Elementary The Technology Coordinator oversees all technology-related functions across the network, including supporting the implementation of educational technology initiatives, the installation of technology tools Page 33 and Middle/High campuses) and systems, management and maintenance of technological systems and equipment, oversight of technological inventory, and provision of technology support to schools and individuals across the network. The Technology Coordinator also works with the PowerSchool and Engagement Coordinator to support the technological needs around effectively implementing PowerSchool. PowerSchool and Engagement Coordinator 2019-20 (position begins at the Network level one year prior to the opening of the Cordova Elementary and Middle/High campuses) The PowerSchool and Engagement Coordinator will be tasked with overseeing the implementation of PowerSchool across the network. The PowerSchool and Engagement Coordinator ensures that PowerSchool is effectively employed to house and manage student data, including grades and attendance records. The PowerSchool and Engagement Coordinator lends robust direct support to school leaders and staff across the network in the effective and proper utilization of the PowerSchool database and receives technological support from the Technology Coordinator. The PowerSchool and Engagement Coordinator also oversees student, parent, and staff engagement activities, as well as the network’s home visit program. Human Resources and Federal Programs Manager 2020-21 (position begins at the networklevel upon the opening of the Cordova Elementary and Middle/High campuses) The Human Resources and Federal Program Manager is responsible for maintaining and enhancing the network’s human capital through the planning, implementation, and evaluation of staff relations and human resource programs, practices, and policies. The Human Resources and Federal Program Manager also ensures full legal compliance with all human resource-related local, State, and federal rules, regulations, requirements, and laws. The Human Resources and Federal Program Manager is also tasked with overseeing the Principals in the implementation of all relevant federal programs to ensure full compliance with all Page 34 applicable rules, regulations, requirements, and laws. Special Education Coordinator 2020-2021 (position begins at the networklevel upon the opening of the Cordova Elementary and Middle/High campuses) The Special Education Coordinator oversees the special education program and services across the network. With support from the Director of Academics, the Special Education Coordinator supports all schools operating within the network: in ensuring full legal compliance; in creating, implementing, monitoring, and updating individual education plans; and in ensuring students receive all needed and mandated modifications, accommodations, services, and supports. The Special Education Coordinator also oversees the execution of RtI2 and gifted learner programming. English as a Second Language (ESL) Coordinator 2020-2021 (position begins at the networklevel upon the opening of the Cordova Elementary and Middle/High campuses) The ESL Coordinator is responsible for the oversight and implementation of the English language learner programming across the network. The ESL Coordinator supports schools operating within the network in ensuring full legal compliance and in providing students with all necessary and mandated language services and supports. The ESL Coordinator works with the Director of Academics to ensure that language learner students have full access to all academic programming. The ESL Coordinator also works hand-in-hand with the Special Education Coordinator to ensure that language learner students with special needs, as well as those who require intervention or enrichment, receive all needed supports and services. 4 Middle/High Instructional Coaches (Math 612; English 6-12; Science 6-12; Social Studies 6-12) 2020-21 (positions begin at the networklevel upon the opening of the Cordova Elementary and Middle/High campuses) Instructional coaches are responsible for supporting and coaching teachers to ensure the delivery of high-quality instruction across the network. Instructional coaches work closely with the Director of Academics and Academic Coordinators to support teachers in planning and implementing instruction. Instructional coaches conduct frequent Page 35 informal observation and coaching cycles to refine and, when necessary, remediate teacher performance. Instructional Coach (K-5) 2021-2022 The instructional coach is responsible for supporting and coaching teachers to ensure the delivery of high-quality instruction across the network. The instructional coach works closely with the Director of Academics and Academic Coordinators to support teachers in planning and implementing instruction. The instructional coach conducts frequent informal observation and coaching cycles to refine and, when necessary, remediate teacher performance. In addition to the positions detailed above (who will provide support to all four schools in the network), MSE has a strong leadership structure established at each school. The school leadership teams will be responsible for the day-to-day academic and operational functioning of the schools. For the two new schools being opened in Cordova, founding Principals will start in January of the planning year to participate in essential pre-opening activities. These key positions include: ● Principal: The Principal is responsible for, and given the autonomy to lead, the day-to-day academic and operational functioning of the school. Among the responsibilities of the Principal is hiring and evaluating school staff, ensuring the effective execution of the school’s academic and cultural programming, and cultivating a safe and positive school culture and learning environment. The Principal reports to, receives support from, and is evaluated by the Executive Director or Director of Operations. ● Academic Coordinator: While the Principal is responsible for, and held accountable to, the school’s academic performance, with support from the Director of Academics, the Academic Coordinator is tasked with directly implementing the school’s academic program. The Academic Coordinator works closely with instructional staff, supporting the development and execution of instructional plans and assessments anchored in the school’s curricula. The Academic Coordinator also oversees the creation and implementation of teacher improvement plans. The Academic Coordinator reports to, receives support from, and is evaluated by the Principal. The Academic Coordinator also receives support from the Director of Academics. ● Dean of Students: The Dean of Students is responsible for overseeing the cultural and behavior management aspects of the school. The Dean of Students is fundamental in maintaining a positive and safe school environment and provides support and directs resources to students who are struggling behaviorally and/or social-emotionally. The Dean of Students also handles all discipline-related issues. The Dean of Students reports to, receives support from, and is evaluated by the Principal. Page 36 ● Counselors: Counselors are responsible for tracking and making recommendations about student attendance, truancy, and transcript data. In addition, a primary component of our school culture is emphasis on college readiness. Counselors not only ensure students are ontrack to matriculate/graduate through regular reviews of transcripts, they also help students in developing their post-secondary goals and plans. Counselors aid students in identifying colleges and university that meet their individual learning needs. Counselors also assist students in the college and financial aid application process. To ensure all network-level and school-level leadership positions have the capacity, skill sets, and resources needed to effectively implement the organization’s academic and operational plans, MSE has a robust set of strategies around bench development, as well as established professional development activities (as more detailed in Section 2.16): ● Cross-training among organizational leadership positions - MSE strategically embeds crosstraining tasks and duties in the roles and responsibilities of other network-level leadership positions to ensure that individuals in MSE are ready and able to assume other network-level leadership roles if needed. For instance, the Director of Finance works closely with the Director of Operations in understanding the operational processes and needs of the organization. The Special Education Coordinator and ESL Coordinator work closely with, and receive training from, the Director of Academics who, in turn, receives training and development in supporting and evaluating staff. ● “Grow Your Own Administration” - For teachers expressing an interest in school leadership or administrative roles, MSE provides funding support and matches teachers with established leadership training programs to develop their skill sets. This initiative will be particularly important and effective as MSE launches new schools. ● Preparation and development of school-level leadership - Organization-level leadership works closely with school-level leadership, especially with the Principal and Academic Coordinator. Such collaboration not only ensures that school-level leadership receives ample support in executing their current roles, but it also provides valuable development and training in the event a school-level leader is tasked with assuming an network-level leadership role. ● Coaching support for teachers - MSE will utilize instructional coaches at the network level (in addition to the Academic Coordinators) to provide observation and ongoing instructional support to teachers at the classroom level. Teachers are also provided with timely assessment data (via the test center) to analyze student achievement and make instructional adjustments as needed. We believe that the collection of these strategies – the establishment of a network support team, strong instructional leadership teams at each school site, and a robust set of bench development and professional development strategies – equips MSE with the necessary capacity to successfully operate four charter schools and achieve strong academic results. Evidence of this capacity is further bolstered in the context of a strong academic and operational track record (as discussed in subsection [a] and detailed in SCS’s School Performance Framework and Operational and Financial Scorecards) and the historically high staff retention rates at MSE, which ensures the continuity of organizational knowledge and continuity and MSE. Page 37 (d) If applicable, list any schools that were previously approved by this or another authorizer but which failed to open or did not open on time, and explain the reasons for the failure or delay. Not applicable. (e) Discuss the results of past replication efforts and lessons learned – including particular challenges or troubles encountered and how you have addressed them. Not applicable. (f) Discuss the greatest anticipated risks and challenges to achieving the organization’s desired outcomes in Tennessee over the next five years and how the organization will meet these challenges and mitigate risks. There are a number of risks, both internal and external, that pose challenges to Memphis School of Excellence and to any organization opening new charter schools. Identifying risks and taking concrete steps to mitigate those risks is critical in MSE being able to successfully achieve its desired goals and outcomes. Those risks include: ● Talent Recruitment - In growing its network of schools, it is critical to have education talent at all levels of the organization – network -level, school leadership and administration, teachers, and support staff. To ensure that MSE has the human capital to successful achieve its desired outcomes, it is establishing a number of strategies to recruit/retain talent – see more detail in Section 2.16 (Personnel/Human Capital): ○ Advertising through print, radio, and online media outlets; school leader and teacher preparation programs; universities; and education job sites. ○ Attending job fairs (Teach901, Christian Brothers University) ○ Networking with local colleges and universities that produce teacher candidates (University of Memphis, Rhodes, CBU, Relay Graduate School) ○ Developing relationships with local education organizations (Memphis Teacher Residency, Teach For America) ○ Leveraging referrals from current MSE employees ○ Utilizing current talent at MSE for its new charter schools opening in Cordova. ● Student Recruitment - Being able to attract students and families is important for the academic and operational success and financial sustainability of the organization. MSE has been successful in recruiting and retaining families at its schools in Hickory Hill since inception, with a student retention rate of nearly 90%. The organization is seeking to open charter schools in a different area of the city (Cordova) from which it has been serving families. To build relationships in the Cordova community, Memphis School of Excellence is engaging in a number of community engagement activities: visiting community centers and hubs (i.e., faith-based organizations, businesses, feeder schools); conducting open houses; and placing advertisements in print and through online media platforms and social media. ● Facilities and Funding - As described in subsection (g) below, MSE is intending to purchase the Harding Academy campus in Cordova to house the two new charter schools (elementary and middle and high) it is planning to open in Cordova in 2020 . MSE does not take for granted securing the resources to effectuate the purchase and is actively engaging with lenders a Page 38 year-and-a-half before the schools open to ensure it has the financing to purchase and move into its new campus in the summer of 2020. In addition, MSE has carefully crafted a multiyear budget to ensure it can operate its network office and its schools in a financially sustainable manner in the short- and long-term. ● Local and State-wide charter policies and regulations - MSE recognizes that it operates in a policy and regulatory environment that, periodically, is subject to change. These changes can have a positive or negative impact on the environment in which MSE operates its schools (e.g., funding impact, impact on student eligibility). MSE continually monitors the policy and regulatory environment at the local, State, and national level to ensure that it is in compliance and that it is acting as an effective and responsible steward of public resources and serving its students and families well. (g) If you have already identified a charter school facility, indicate the location(including street address and school zone). Describe the facility, including whether it is new construction or part of an existing public or private school building. If a facility has not been identified, indicate any existing possibilities and the process that will be used to find a suitable facility. Include a timeline for facility selection and requisition. MSE is intending to purchase the Harding Academy campus in Cordova (located at 8360 Macon Road, Cordova, TN 38018) and has already committed earnest money to give it the option (expiring in December 2019) to purchase the property. The Harding Academy campus has two separate building, totaling approximately 90,000 square feet and 20 acres and would have the capacity to house the new elementary charter and middle and high school charter over the longterm. MSE is holding conversations with a local banking institution to secure funding to purchase the facility and will move forward with the purchase upon approval of the two charter applications (elementary, and middle and high school). (h) Provide, as Attachment L, the organization’s most recent annual report. See Attachment L. Page 39 2.12 Network Management (for existing operators) In this section: a. Identify the organization’s leadership team and their specific roles and responsibilities. Network-level leadership will oversee and support all MSE schools. With guidance and support from organization-level leadership, school-level leadership will lead the day-to-day operational and academic functioning of the school. As such, our organizational structure will include: Network-level Leadership ● Executive Director: The Executive Director serves as the leader of the network and is ultimately responsible for ensuring that the network as a whole, as well as each school within the network, succeeds. The Executive Director oversees and supports Principals and ensures that they run effective, high-quality schools. As such, the Executive Director is tasked with making high-level, strategic decisions, including the oversight and hiring of network-level leadership and Principals, establishment of organization-wide expectations, implementation of organizational systems, business processes, and academic and cultural programming – all of which must align with, and support, MSE’s mission and vision. The Executive Director also manages vendor relations, contract oversight, food service, facilities, and security and safety systems. The Executive Director is responsible for cultivating a healthy culture across the organization – one of accountability, collaboration, and collegiality. The Executive Director reports to, receives support from, and is evaluated by the Board of Directors. ● Director of Operations: The Director of Operations provides leadership and robust support around operational aspects across the network, including oversight of student and parent engagement, technology, counseling programs, 504 plans, and athletic and sports programming. The Director of Operations also assists the Executive Director with the oversight of Principals and the Director of Academics. In addition to providing support to, and receiving training from, the Executive Director, the Director of Operations supports the Technology Coordinator and Human Resources and supports the Federal Programs Manager to ensure that systems and policies related to technological infrastructure, human capital, and federal programs operate effectively and comply with all local, State, and federal laws, regulations, and statutes. The Director of Operations reports to, receives support from, and is evaluated by the Executive Director. ● Director of Academics: The Director of Academics is responsible for overseeing, implementing, and supporting the network’s academic programming, including instruction, assessment, and professional development. While the Executive Director is ultimately responsible for the success of the network, as well as the success of the individual schools operating across the network, the Director of Academics is also held accountable for the academic performance of each school. The Director of Academics oversees the network’s instructional coaches, as well as manages the Academic Coordinators at the school level. Additionally, the Director of Academics is responsible for the oversight of Response to Instruction and Intervention (RtI2), special education, English language learner, and gifted and talented programming. Accordingly, the Director of Academics oversees and provides support to the Special Education Coordinator and English-as-a-Second Language Coordinator to ensure that students with special needs and who are English language learners receive Page 40 ● ● ● ● curricular and instructional support, accommodations, modifications, and language services as mandated by law and as outlined in individual education plans and language learner plans. The Director of Academics reports to, receives support from, and is evaluated by the Executive Director. Director of Finance: The Director of Finance is responsible for the financial health and sustainability of the network. The Director of Finance oversees the financial aspects of the network, including budget development, payroll preparation, accounts payable and receivable, and grant reimbursements. The Director of Finance also reports monthly to the Tennessee Consolidated Retirement System. The Director of Finance works closely with the Executive Director to ensure budget allocations reflect and support the operational and academic needs of the network. The Director of Finance, in collaboration with the Executive Director, also works with Principals, supporting them in school-based budgeting and financial decisions. The Director of Finance reports to, receives support from, and is evaluated by the Executive Director. Special Education Coordinator: The Special Education Coordinator is tasked with overseeing the special education program and services across the network. With support from the Director of Academics, the Special Education Coordinator supports all schools operating within the network in ensuring full legal compliance; in creating, implementing, monitoring, and updating individual education plans; and in ensuring that students receive all needed and mandated modifications, accommodations, services, and supports. The Special Education Coordinator also oversees the execution of RtI2 and gifted learner programming. The Special Education Coordinator reports to, receives support from, and is evaluated by the Director of Academics. English as a Second Language (ESL) Coordinator: The ESL Coordinator is responsible for the oversight and implementation of the English language learner programming across the network. The ESL Coordinator supports schools operating within the network in ensuring full legal compliance and in providing students with all necessary and mandated language services and supports. The ESL Coordinator works with the Director of Academics to ensure that language learner students have full access to all academic programming. The ESL Coordinator also works hand-in-hand with the Special Education Coordinator to ensure that language learner students with special needs, as well as those who require intervention or enrichment, receive all needed supports and services. The ESL Coordinator reports to, receives support from, and is evaluated by the Director of Academics. Technology Coordinator: The Technology Coordinator oversees all technology-related functions across the network, including supporting the implementation of educational technology initiatives, the installation of technology tools and systems, management and maintenance of technological systems and equipment, oversight of technological inventory, and provision of technology support to schools and individuals across the network. The Technology Coordinator also works with the PowerSchool and Engagement Coordinator to support the technological needs around effectively implementing PowerSchool. The Technology Coordinator reports to, receives support from, and is evaluated by the Director of Operations. Page 41 PowerSchool and Engagement Coordinator: The PowerSchool and Engagement Coordinator will be tasked with overseeing the implementation of PowerSchool across the network. The PowerSchool and Engagement Coordinator ensures that PowerSchool is effectively employed to house and manage student data, including grades and attendance records. The PowerSchool and Engagement Coordinator lends robust direct support to school leaders and staff across the network in the effective and proper utilization of the PowerSchool database and receives technological support from the Technology Coordinator. The PowerSchool and Engagement Coordinator also oversees student, parent, and staff engagement activities, as well as the network’s home visit program. The PowerSchool and Engagement Coordinator reports to, receives support from, and is evaluated by the Executive Director. ● Human Resources and Federal Programs Manager: The Human Resources and Federal Program Manager is responsible for maintaining and enhancing the network’s human capital through the planning, implementation, and evaluation of staff relations and human resource programs, practices, and policies. The Human Resources and Federal Program Manager also ensures full legal compliance with all human resource-related local, State, and federal rules, regulations, requirements, and laws. The Human Resources and Federal Program Manager is also tasked with overseeing the Principals in the implementation of all relevant federal programs to ensure full compliance with all applicable rules, regulations, requirements, and laws. The Human Resources and Federal Program Manager reports to, receives support from, and is evaluated by the Executive Director. ● School-level Leadership: ● Principal: The Principal is responsible for, and given the autonomy to lead, the day-to-day academic and operational functioning of the school. Among the responsibilities the Principal is tasked with are hiring and evaluating school staff, ensuring the effective execution of the school’s academic and cultural programming, and cultivating a safe and positive school culture and learning environment. The Principal reports to, receives support from, and is evaluated by the Executive Director or Director of Operations. ● Academic Coordinator: While the Principal is responsible for, and held accountable to, the school’s academic performance, with support from the Director of Academics, the Academic Coordinator is tasked with directly implementing the school’s academic program. The Academic Coordinator works closely with instructional staff, supporting the development and execution of instructional plans and assessments anchored in the school’s curricula. The Academic Coordinator also oversees the creation and implementation of teacher improvement plans. The Academic Coordinator reports to, receives support from, and is evaluated by the Principal. The Academic Coordinator also receives support from the Director of Academics. ● Dean of Students: The Dean of Students is responsible for overseeing the cultural and behavior management aspects of the school. The Dean of Students is fundamental in maintaining a positive and safe school environment and provides support and directs resources to students who are struggling behaviorally and/or social-emotionally. The Dean of Students also handles all discipline-related issues. The Dean of Students reports to, receives support from, and is evaluated by the Principal. Page 42 ● Counselors: Counselors are responsible for tracking and making recommendations about student attendance, truancy, and transcript data. In addition, a primary component of our school culture is emphasis on college readiness. Counselors not only ensure students are ontrack to matriculate/graduate through regular reviews of transcripts, they also help students in developing their post-secondary goals and plans. Counselors aid students in identifying colleges and university that meet their individual learning needs. Counselors also assist students in the college and financial aid application process. b. Provide, as Attachment M, the organization charts for Year 1 networks as a whole (including both network management and schools within the network). Year 3 network as a whole and Year 5 network as a whole. The network organization charts should clearly delineate the roles and responsibilities of – and lines of authority and reporting among – the governing board, staff, any related bodies (such as advisory bodies or parent/teacher councils), and any external organizations that will play a role in managing the schools. If the school intends to contract with a charter management organization clearly show the provider’s role in the organizational structure of the school. See Attachment M. c. Explain any shared or centralized support services the network organization will provide to schools in Tennessee. Describe the structure, specific services to be provided, the cost of those services, how costs will be allocated among schools, and specific service goals. How will the organization measure successful delivery of these services? (In the case of a governing board proposing to contract with a management organization, service goals should be outlined in the term sheet and draft contract). Services to be provided. To ensure each MSE school has strong academic, operational, and financial support, MSE’s Network office and team will provide services to MSE’s schools in the form of: • Shared professional development opportunities for school leaders, teachers, and staff members (coordinated by the Network leadership team) • Curriculum selection and design (and standards for development of unit and lesson plans, pacing, and level of rigor) • Data management (i.e., test center and analysis of formative and summative assessments; student enrollment, attendance, transfer, and withdrawal data; local, State, and federal compliance reporting) • Accounting and budget management • Vendor management and procurement • Information Technology (IT) management (computers, equipment) • Facilities management and maintenance (including financing and funding to secure school facilities) • Human Resources management o Staff recruitment and hiring o Payroll processing and benefits administration • Student recruitment Page 43 • • Fundraising (for the organization on behalf of MSE schools) Community relations The services provided by the Network office are carried out by the network leadership team, who provide a breadth of experience and skill sets around the service areas outlined above. Cost and allocation of services. Schools will share in the costs of the network office (staffing, operating expenses) pro rata based on each school’s percentage of the organization’s total student enrollment. For example, if one of MSE school’s enrollment is 25% of the enrollment of all MSE schools, that school would pay 25% of the network office’s expenses from the school’s Basic Education Payment revenue. The following table summarizes the costs of the network office over the next five years. Fiscal Year 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 Network costs ~$632K ~$1.1M ~$1.2M ~$1.3M ~$1.5M Service goals. Memphis School of Excellence is seeking to create a network and a K-12 feeder pattern that deeply serves several communities in the Memphis area: Hickory Hill and Cordova. By creating a network support team and office, MSE is seeking to leverage resources, experience, and expertise to ensure academic leaders, teachers, and staff can focus on driving student achievement, and that they have professional development and coaching, curricular materials, financial resources, and effective operational processes to support them in that effort. As such, the service goals of the network support team are to: 1. Provide professional development and other learning opportunities for school leaders and teachers to allow them to grow as educators (“Grow Your Own Administration program” as one example). As a network, MSE educators will have access to a vast array of learning opportunities from within the network and outside the network. 2. Provide access to a robust set of curricular resources and materials aligned to Tennessee State standards, and provide effective frameworks, standards, feedback, and coaching around unit and lesson plan development and data-driven instructional cycles. 3. Provide access to, and analysis of, student achievement data and trends. 4. Provide Human Resources (HR) management (recruiting, on-boarding, payroll systems, benefits) to ensure MSE schools have the education talent to meet its vision and mission. 5. Provide the financial resources (and help individual school leaders prioritize spending) to maximize teaching and learning in the school. This includes fundraising on behalf of the needs of MSE’s individual schools. 6. Provide an efficient system of procurement to ensure that each MSE school has the supplies, materials, and equipment to operate effectively. 7. Provide well-maintained and functioning facilities that support teaching and learning in the school and that provides students with an array of enrichment activities, clubs, and sports. Page 44 8. Assist MSE schools with student recruitment efforts to ensure that each school is fully enrolled each year. Service delivery success measures. To measure how the network office is doing in terms of school support, a survey will be administered to school level leaders, teachers, and staff at least two times per year with a series of satisfaction-related questions around the service goals mentioned above (with opportunities for comments and feedback). For example, questions will address whether, and to what extent, schools feel supported by the network in professional development, curricular resources, HR management, budgeting and financial management, facilities, and student recruitment. In addition to formal surveys, MSE will create informal feedback loops in which the network team and school-level personnel communicate (in-person and via written communications) on the effectiveness of support services. Finally, MSE will develop a monthly dashboard to continuously evaluate quantitative measures around its support services. Dashboard metrics would include: • Frequency and types of professional development (and percentage of participation from school level staff) • Monitoring of any instances of procurement delays, absence of materials, supplies, and equipment • Teacher evaluation (coaching and observation frequency and quality) • School level financial metrics (monthly budget to actuals, cash balances, timeliness of closing books each month) • Student enrollment and attendance • Staff hiring and retention • Frequency of facilities-related issues • Timeliness of student achievement data availability and analysis Using the table below, summarize school- and organization-level decision-making responsibilities as they relate to key functions. Function Performance Goals Network Decision Making The Executive Director, in collaboration with relevant network- and school-level leaders and with approval from the Board of Directors, is responsible for decisions related to performance goals. Examples of such decisions may include: the establishment of network-wide academic, operational, and financial performance goals; identification of benchmark measures and metrics; and specification of monitoring mechanisms for the network as a whole and individual schools within the network, as well as adjustments to academic, operational, and financial programming, policies, and practices in support of achieving goals. School Decision Making The Principal, with support from, and in collaboration with, the Executive Director and other relevant networkand school-level leaders, is responsible for decisions related to school-specific performance goals that support the achievement of networkwide goals. Examples of such decisions may include the establishment of goals specific to subpopulations and cohorts of students, as well as contents and grade levels as applicable to the network’s goals. Page 45 Function Curriculum Professional Development Data Management and Interim Assessments Promotion Criteria Network Decision Making The Director of Academics, with support and oversight from the Executive Director, is responsible for decisions related to curriculum. Examples of such decisions may include unit and lesson plan design requirements to ensure alignment to all applicable standards, appropriate pacing, and high levels of rigor, as well as the elimination and adoption of curricular resources. The Director of Academics, with support and oversight from the Executive Director, is responsible for decisions related to professional development (PD). Examples of such decisions may include the creation and implementation of the network’s PD plan in support of achievement of the network’s established performance goals, as well as determinations about PD offerings as informed by formal and informal observation data, benchmark scores, and other sources of data. The PowerSchool and Engagement Coordinator, with input from the Technology Coordinator, when applicable, and with support and oversight from the Executive Director, is responsible for decisions related to data management. Examples of such decisions may include creating and/or modifying the master schedule in PowerSchool, fulfilling State and district reporting requirements, as well as tracking student attendance, enrollment, transfer, and withdrawal data. The Director of Academics, with support and oversight from the Executive Director, is responsible for decisions regarding interim assessments. Examples of such decisions include creating and validating all internal benchmark assessments and establishing and modifying assessment administration practices, as well as vetting and proposing the adoption, elimination, or replacement of external standardized interim assessments such as NWEA MAP. The Executive Director, with input from the Director of Academics and approval from the Board of Directors, is responsible School Decision Making The Academic Coordinator, with support and oversight from the Director of Academics and Principal, is responsible for decisions related to curriculum at the school level. Examples of such decisions may include the determination of schoolspecific details around unit and lesson plan review, as well as the deployment and allocation of curricular resources. The Principal and/or the Academic Coordinator, with oversight and support from the Director of Academics, is responsible for decisions related to PD at the school level. Such decisions may include determinations about instructional staff in need of additional support and development, as well as requests to the network for PD on specific topics as informed by various sources of data like teacher request, observations, and assessment results. The Counselor, with support and oversight from the Principal and Academic Coordinator, is tasked with decisions around data management at the school level. Examples of such decisions include tracking and making recommendations about student attendance, truancy, and transcript data. The Academic Coordinator, with support and oversight from the Principal and Director of Academics, is responsible for decisions regarding interim assessments at the school level. Examples of such decisions may include making determinations about tutoring groups, as well as prescribing student interventions and assigning teacher supports as informed by analysis of benchmark interim assessments. The Principal, with support and oversight from the Executive Director, is responsible for decisions related to Page 46 Function Culture Budgeting, Finance, and Accounting Student Recruitment School Staff Recruitment and Hiring Network Decision Making for decisions related to promotion criteria. Examples of such decisions may include modifying promotion thresholds, as well as revising retention policies and practices while still complying with all applicable district and State mandated requirements. The Executive Director is responsible for decisions related to the network’s culture as whole, as well as the cultural programming implemented in each of the network’s schools. Examples of such decisions may include the adoption of social-emotional curriculum and implementation of cultural structures, as well as changes to the network’s behavioral management practices and discipline policies. The Director of Finance, with support and oversight from the Executive Director and, by extension, the Board of Directors, is responsible for decisions related to budgeting, finance, and accounting. Examples of such decisions may include initial budget development, proposed resource allocations, as well as practices guiding payroll preparation, accounts payable and receivable, and grant reimbursements. The Executive Director, with support and input from the Director of Operations and Director of Finance, is responsible for decisions regarding student recruitment. Examples of such decisions may include creation of or adjustment to recruitment plans, such as advertising mechanisms, target markets, and events, as well as adjustments to student enrollment targets. The Executive Director, with support and input from the Director of Operations, Director of Academics, Director of Finance, and Human Resources and Federal Programs Manager, is responsible for decisions regarding school staff recruitment and hiring. Examples of such decisions may include advertising School Decision Making promotion criteria at the school level. Such decisions may include determinations of retention as outlined by the network’s policies, as well as alternative solutions to retention. The Dean of Students, with support and oversight from the Principal and, by extension, the Executive Director, is responsible for school-level decisions related to culture. Examples of such decisions may include the establishment or modification of school-specific cultural practices in support of the network’s cultural vision and programming, as well as determinations about student-specific consequences in alignment to the network’s behavioral plan as related to discipline infractions. The Principal, in collaboration with the Executive Director and Director of Finance, is responsible for decisions related to budgeting, finance, and accounting at the school level. Examples of such decisions may include allocations for school-specific resources like instructional materials and supplies and PD, as well as for offerings such as school-specific school events and clubs. The Principal, with support and oversight from the Executive Director, is responsible for decisions regarding student recruitment at the school level. Such decisions may include details regarding open houses, as well as school-specific advertising and marketing content. The Principal, with support and oversight from the Executive Director, is responsible for school staff recruitment and hiring at the school level. Examples of such decisions may include participation details in recruitment events such as fairs, as well as hiring determinations for Page 47 Function Human Resources (H/R) Services (e.g., payroll, benefits) Development/ Fundraising Community Relations Network Decision Making mechanisms, target markets, and events, as well as adjustments to hiring targets. Decisions also may encompass changes to hiring practices and compensation packages, which would comply with all applicable district, State, and federal laws and policies. The Director of Finance and Human Resources and Federal Programs Manager, with support and oversight from the Executive Director and Director of Operations, are responsible for decisions related to H/R Services. The Director of Finance may make decisions such as changes to payroll procedures, as well as recommendations about compensation and benefits packages. The Human Resources and Federal Programs Manager may make determinations about personnel policies, as well as human resource programming across the network. The Executive Director, with support and input from the Director of Operations and Director of Finance, is responsible for decisions related to development and fundraising. Examples of such decisions may include fundraising targets, markets, and events, as well as the allocation of monies raised by fundraising efforts. The PowerSchool and Engagement Coordinator, with support and oversight from the Executive Director, is responsible for decisions regarding internal community relations. Examples of such decisions may include the development of parent and community events and programs, as well as oversight of and changes to the network’s home visit program. The Human Resources and Federal Programs Manager, with support and oversight from the Executive Director, is tasked with decisions regarding external community relations. Examples of such decisions may include planning and implementing community stakeholder School Decision Making school-specific vacancies. Hiring determinations will be made from a pool of candidates previously screened or approved by networklevel leadership. The Principal, with support and oversight from the Executive Director and input from the Human Resources and Federal Programs Manager, is responsible for decisions regarding H/R Services at the school level. Examples of such decisions may include assigning extra duties as needed, allocating stipends for duties related to sports and clubs, as well as determining payroll deductions for situations, such as teacher absences or lost equipment. The Principal, with support and oversight from the Executive Director, Director of Operations, and Director of Finance, is responsible for school-level decisions related to development/ fundraising. Examples of such decisions may include the development and implementation of fundraising targets and events, as well as the allocation of raised funds to support school-specific initiatives. The Dean of Students, with support and oversight from the Principal and PowerSchool and Engagement Coordinator, is responsible for decisions regarding community relations at the school level. Examples of such decisions may include schoolspecific implementation details of network-wide parent and community events and programs and the home visit program, as well as the development and implementation of school-specific community offerings, such as computer and language classes. Page 48 Function Information Technology (I/T) Facilities Management Vendor Management/ Procurement Network Decision Making events, as well as managing media relations. The Technology Coordinator, with support and oversight from the Director of Operations and input from the PowerSchool and Engagement Coordinator, is responsible for decisions related to I/T. Examples of such decisions include the proposal of educational technology initiatives and assessment of technology-related needs and maintenance plans, as well as the allocation of technological support provided to schools. The Executive Director, with support and input from the Director of Operations and Director of Finance, is responsible for decisions regarding facilities management. Examples of such decisions include the provision of security and safety systems, assessment of building-specific needs and maintenance plans, selection and execution of facility-related vendors and contracts, as well as determinations about facility procurement. The Executive Director, with support and input from the Director of Operations and Director of Finance and approval from the Board of Directors, is responsible for decisions regarding vendor management/procurement. Examples of such decisions may include establishment and advertisement of RFPs, use of SCS approved RFPs and vendors, selection and management criteria for vendors, as well as determinations about resource allocations for procurements. School Decision Making The Technology Coordinator, with support and oversight from the Director of Operations and input from the PowerSchool and Engagement Coordinator as applicable, is responsible for decisions related to I/T at the school level. The Technology Coordinator rotates between all MSE campuses to oversee and manage each school’s technological infrastructure and systems. The Principal is tasked with alerting the Technology Coordinator to all schoolspecific technology needs and issues, to which the Technology Coordinator decides how to respond. Additional examples of decisions may include assigning school specific technology resources, as well as providing customized technology support to staff and students. The Principal, with support and oversight from the Executive Director and/or Director of Operations, is tasked with decisions regarding facilities management at the school level. Examples of such decisions may include determining and reporting facility needs, remedying maintenance issues under $1K, communicating with approved vendors, as well as evaluating custodial performance. The Principal, with support and oversight from the Executive Director, Director of Operations, and Director of Finance, is responsible for vendor management/procurement decisions at the school level. Examples of such decisions may include procuring items under $1K, as well as working with approved vendors. Page 49 2.13 Network Governance (for existing operators) a. As applicable, describe the governance structure at the network level and how that relates to the individual school. • Will each school/campus have an independent governing board, or will there be a single network-level board governing multiple schools? If there will be a networklevel board, discuss the plan for satisfying the statutory requirement of either: having a parent from one of the network’s Tennessee schools serve on the governing body, or having advisory councils at each school. A single network-level Board will govern all of our schools. More specifically, our sponsoring entity – Read Foundation (RF) – is a nonprofit corporation that was established according to Federal and Tennessee nonprofit corporation laws. The Board of Directors of the RF are dedicated to quality education and the promotion of science, mathematics, engineering, and technology (STEM) in school environments. The primary purpose of the foundation is to organize and operate exclusively for charitable, educational, scientific, and literary purposes. Accordingly, the Board of Directors of the Read Foundation will serve as the governing body for all MSE schools. MSE’s Executive Director oversees the operation of all MSE schools and is evaluated annually by the Board of Directors. To satisfy the statutory requirement of parental representation on the Board, one parent whose child is currently enrolled in one of our operating schools in the Hickory Hill neighborhood of Memphis serves as an active Board Member. On approval of the proposed school’s charter, another parent whose child is enrolled in our school located in Cordova will be appointed to the Board within six months of the school’s opening, ensuring parent representation in both areas of Memphis in which we will operate. Additionally, each school will have an advisory council. In accordance with Tennessee Code § 49-13-109, an advisory school council shall include no fewer than five (5) members and shall include the Principal, at least one (1) parent, and at least one (1) teacher representative. Parent and teacher membership will be determined by election. In addition, at least one community member who is active in the area in which the school resides will also be appointed to each advisory council to ensure that constituencies local to each school are also represented. Advisory councils will convene quarterly to discuss needs, identify areas for improvement, pinpoint problems, and recommend solutions. Following every meeting, each advisory council will submit a report detailing the council’s conversations, needs, and recommendations among other pertinent information to the Board. Each Principal on the advisory councils will attend Board meetings to further expound on the needs and requests identified in reports. Upon hearing from individual school’s Principals and receiving reports, the Board will determine what further actions need to be taken in response to the councils’ input. Accordingly, based on individual needs, the Board may elect to adopt school-specific policies, such as implementing varying pay scales, employing retention bonuses, and enacting sports compensation policies. In short, advisory councils will ensure that each school has representation and will inform the Board of each school’s individual needs and interests, allowing the Board to effectively govern all schools. Page 50 b. Describe the size and composition (current and desired) for the board. Explain how the proposed governance structure and composition will help ensure that there will be active and effective representation of key stakeholders. Size and composition of the Board. Currently, the Board is composed of six highly qualified, diverse individuals who are committed to MSE’s mission, vision, and model. In anticipation of replication, the Board recently added new members, taking membership to six directors. The addition of directors ensures that the Board will be able to effectively govern all MSE schools, as well as enabling effective representation of key stakeholders. As indicated above, upon approval of, and opening of, the proposed school, the Board will appoint an additional parent to serve as an active director. The Board does not currently intend to add additional directors beyond that of a parent in the near future. The current Board has the collective expertise, competence, and experience to effectively govern and ensure the financial, operational, and educational success of all our schools. Active and effective representation of key stakeholders: The size and composition of the Board will enable active and effective representation of key stakeholders through: • Parent Representation: As explained above, a parent whose child is currently enrolled in one of our schools in operation is an active Board Member. Additionally, upon approval of the charter and opening of the proposed school, a parent whose child is enrolled in our school in Cordova will be appointed to the Board. These members lend key parent voice and representation of the Hickory Hill and Cordova areas of Memphis to the Board. • Advisory Councils: As indicated above, each school will have an advisory council. In accordance with Tennessee Code § 49-13-109, an advisory school council shall include no fewer than five (5) members and shall include the Principal, at least one (1) parent, and at least one (1) teacher representative. In addition, at least one community member who is active in the area in which the school resides will also be appointed to each advisory council to ensure constituencies of each school are also represented. Every council will meet quarterly and, upon convening, will submit a report to the Board for review. Advisory council reports, as well as further information provided by Principals who reside on councils, will ensure that school stakeholders are actively and effectively represented. • Tennessee Open Meetings Act: All Board meetings are open to the public; the Board encourages all stakeholders to regularly attend. Board meeting dates, agendas, minutes, and policies are published on MSE’s website. Stakeholders may request hard copies of public Board artifacts. • Parent-Teacher Organization: Every school will have a Parent-Teacher Organization (PTO) that meets regularly to discuss matters related to the school’s operation and programming. Each PTO employs a robust governing structure that consists of the following elected officers: President, First Vice President, Second Vice President, Secretary, Treasurer, Assistant Treasurer, and Parliamentarian and Liaison Officers. After PTO meetings, the President or his/her designee will meet with the Principal to relay comments, concerns, and ideas. The Principal will then share relevant information with the Board for consideration. • Stakeholder Input: The Board values community stakeholder input and will regularly solicit feedback from stakeholders, such as parents, community members, local businesses, and community hubs through methods such as surveys, presentations, meetings, and forums. Page 51 c. Discuss the powers and duties of the governing board(s). Identify key skills, areas of expertise, and constituencies that will be represented on the governing board(s). Powers and duties of the Governing Board. The Board is ultimately responsible for the success of all MSE schools. As outlined in the Board’s by-laws, the composition of the Board includes a President, Vice President, a Treasurer, and a Secretary. The by-laws define each officer’s powers and duties as follows: • President: The president shall be the chief executive officer of the Corporation. The president shall supervise and control all of the business and affairs of the Corporation. The president shall preside at all meetings of the members and of the Board of Directors. The president may execute any deeds, mortgages, bonds, contracts, or other instruments that the Board of Directors has authorized to be executed. However, the president may not execute instruments on behalf of the Corporation if this power is expressly delegated to another officer or agent of the Corporation by the Board of Directors, the bylaws, or statute. The president shall perform other duties prescribed by the Board of Directors and all duties incident to the office of president. • Vice President: When the president is absent, is unable to act, or refuses to act, a vice president shall perform the duties of the president. When a vice president acts in place of the president, the vice president shall have all the powers of and be subject to all the restrictions of the president. If there is more than one vice president, the vice presidents shall act in place of the president in the order of the votes received when elected. A vice president shall perform other duties as assigned by the president or Board of Directors. • Treasurer: The treasurer shall: o Have charge and custody of and be responsible for all funds and securities of the Corporation. o Receive and give receipts for moneys due and payable to Corporation from any source. o Deposit all moneys in the name of Corporation in banks, trust companies, or other depositories as provided in the bylaws or as directed by the Board of Directors or president. o Write checks and disburse funds to discharge obligations of the Corporation. o Maintain the financial books and record of the Corporation. o Prepare financial reports at least annually. o Perform other duties as assigned by the president or by the Board of Directors. o If required by the Board of Directors, give a bond for the faithful discharge of his/her duties in a sum and with a surety as determined by the Board of Directors. o Perform all of the duties incident to the office of treasurer. • Secretary: The secretary shall: o Give all notices as provided in the bylaws or as required by law. o Take minutes of the meetings of the members and the Board of Directors and keep the minutes as part of the corporate records. o Maintain custody of the corporate records and of the seal of the Corporation. o Affix the seal of the Corporation to all documents as authorized. o Keep a register of the mailing address of each director, officer, member, and employee of the Corporation. Page 52 o Perform duties as assigned by the president or by the Board of Directors. o Perform all duties incident to the office of secretary. The Board’s by-laws also dictate that the Board must have an Academic Committee and Finance Committee; each committee’s activities and scope of work is as follows: • Academic Committee: Reviews curriculum to ensure alignment with MSE’s mission; recommends policy changes to the Board when appropriate; and participates in program development and evaluation. • Finance Committee: Drafts annual operating and capital budgets for approval by the Board; reviews and presents monthly actual revenues and expenditures of operating, capital, and enterprise activities to the Board; and provides advice to the Board and school leadership about financial matters. In addition to the committees outlined above, the by-laws indicate that the Board may adopt a resolution establishing one or more committees. A committee must include two or more directors and may include members who are not serving as directors. However, if the Board delegates any of its authority to a committee, the majority of the committee will consist of directors. In accordance with the by-laws, the Board has established the following committees, which function as follows: • Facilities and Equipment Committee: Determines space and equipment needs and costs associated therewith; develops plans for any necessary renovations to sites; monitors ongoing compliance with regulations; and oversees maintenance of buildings and equipment. • Personnel Committee: Reviews and recommends job descriptions to the Board; reviews Principals’ recommendations for hiring and dismissing employees; makes employment recommendations to the Board; and provides advice to the Board and school leadership about personnel matters. Key skills and areas of expertise represented on the Governing Board. Individually and collectively, directors possess the skills and expertise to govern and ensure each school achieves academic, operational, and financial success. More specifically, the Board is composed of six dedicated educators and distinguished community members who have expertise in community service and outreach, the law, public relations, education, management, parent and community involvement, finance, marketing, fundraising and grant writing, personnel and human capital, and non-profit governance. Directors also have vast experience in school administration, medicine, science, mathematics, and computer education at a national as well as at an international level. Name Dr. Cem Akkus Patty Farmer Dr. Richard E. Potts Current Job and Employer GIS Analyst at the School of Public Health, University of Memphis Not Applicable – Parent Representative Associate Professor of Education, Christian Brothers University Focus/Expertise Community Service/Outreach, Community Involvement Community Service/Outreach, Education, Organizational Experience Community Service/Outreach, Education, Management/ Organization Experience Page 53 Bayram Demirbuga Veda V.T. Cherry Dr. David C. Akdemir Statistical Programmer, TN Department of Health Lawyer, Cherry & Cherry, LLC Director of Leadership Development, Harmony Public Schools Community Service/Outreach, Education Legal Expertise/Attorney, Community Involvement , Public Relations Personnel/Human Capital, Education, Finance, Marketing Dr. Akkus is an educator and consultant to a charter school; he has been instrumental in creating and implementing after-school programs for underprivileged and underserved students. Mrs. Farmer serves as the Board’s parent representative and has extensive experience working with PTOs, as well as sponsoring and executing robust fundraising activities. Additionally, Mrs. Farmer annually organizes an open house, welcoming all community members to attend; most recently, more than 150 families and community stakeholders visited our operational schools. Dr. Potts is an associate professor at Christian Brothers University Education Department with expertise in higher education and educational management. Mr. Demirbuga is a former teacher who currently works for the TN Department of Health; he brings valuable science, technology, engineering, and mathematics (STEM) knowledge and experience to the Board. Ms. Cherry is a practicing lawyer; she is a founding partner at Cherry & Cherry, LLC and offers a wealth of legal expertise. Dr. Akdemir is the current Director of Leadership Development at Harmony Public Schools. He possesses extensive experience and knowledge in K-12 education, as well as is an expert in personnel and human capital and educational leadership. Dr. Akdemir also brings finance and marketing expertise to the Board. Constituencies represented by the Governing Board. As explained throughout this section, each school will have an advisory council. In accordance with Tennessee Code § 49-13-109, an advisory school council shall consist of no fewer than five (5) members and shall include the Principal, at least one (1) parent, and at least one (1) teacher representative. In addition, at least one community member – such as a local leader and/or member of a faith-based or other community organization who is active in the area in which the school resides – will be appointed to each advisory council to ensure that constituencies of each school are also represented. Advisory councils will convene quarterly to discuss needs, identify areas for improvement, pinpoint problems, and recommend solutions. Following every meeting, each advisory council will submit a report detailing the council’s conversations, needs, and recommendations among other pertinent information to the Board. Each Principal on the advisory councils will attend Board meetings to further explain the needs and requests identified in reports. Upon hearing from individual school’s Principals and receiving reports, the Board will determine what further actions need to be taken in response to the councils’ input. d. Explain how this governance structure and composition will help ensure that a) the school will be an educational and operational success; and b) the board will evaluate the success of the school and leader. Ensuring the school will be an education and operational success. The Board of Directors is ultimately accountable for the oversight and success of all MSE schools. As such, the Board’s Page 54 primary focus is to ensure that all necessary resources are available to accomplish MSE’s mission and goals. The Board will delegate to the appointed Principal authority and decision-making responsibility for day-to-day operations of the school, including (but not limited to): hiring and dismissing school staff; designing the school’s curriculum; and creating the school’s annual budget (subject to Board approval). To that end, Board Members’ responsibilities include (but are not limited to): • Affirm MSE’s mission, goals, and objectives • Attend regular and special Board meetings • Provide leadership to Board committees and sub-committees • Help prepare the budget collaboratively with the Executive Director and Director of Finance • Commit time to developing financial resources for the charter school • Evaluate the performance of the Executive Director • Establish and maintain all policies governing the operation of MSE schools • Ensure that MSE schools adhere to the mission and goals outlined in the charter • Hold the Executive Director accountable for the academic success and fiscal responsibility of MSE schools • Provide support to schools for additional fund-raising, marketing, and other services as needs arise • Hear and render decisions on issues brought to the Board’s attention • Participate in disputes that are brought to the Board’s attention as they relate to MSE’s discipline policy – especially disputes arising in the areas of expulsion and long-term suspension • Handle complaints submitted to the Board in a timely manner per the complaints process detailed in the charter application • Responsibly review and act on committee recommendations • Assist in identifying resources and attracting resourceful people • Advocate on behalf of MSE by working to establish partnerships with community organizations, institutions of higher learning, and nonprofit foundations In addition to the robust responsibilities of each Board Member, the collective expertise of the Board will further ensure that MSE schools will be an educational and operational success. As described in detail above, the Board possesses extensive knowledge in the key areas of community service and outreach, law, public relations, education, management, parent and community involvement, finance, marketing, and personnel and human capital. Members’ collective experience enables the Board to provide informed oversight and effectively govern MSE schools. The Board is composed of four officers: President, Vice President, Treasurer, and Secretary. These offices have distinct powers and duties (described above) as dictated by the Board’s by-laws. Such clear delineation of roles and responsibilities further ensures success as each officer is specifically tasked with, and held accountable to, clear responsibilities related to the operational success of MSE schools. Additionally, as detailed above, the Board implements a robust committee structure. Collectively, committees oversee critical educational and operational aspects of MSE schools, including Page 55 curricula and academic programming, facilities and equipment needs, financial health, and personnel matters. In short, the Board’s layered approach to governance, including extensive member responsibilities, depth and breadth of member expertise, clearly defined offices, and comprehensive committees ensure that each MSE school is, and will be, an educational and operational success. Evaluating the success of the school. The Board of Directors is ultimately accountable for the success of MSE schools. The Board will evaluate each school against the applicable goals outlined in the Performance Management section. Data gleaned from the district Operational Scorecard and Performance Framework, TN report card, State assessment results, and audit reports will inform evaluation of the school. In addition, the Executive Director or his designee provides information about each school’s performance via a dashboard that outlines metrics during Board meetings. Such data includes: • Student academic achievement and growth • Financial reports • Behavioral and discipline reports • Enrollment data • Average daily attendance Evaluating the success of the leader. The Board of Directors is responsible for evaluating the success of the Executive Director. The Board has partnered with BoardOnTrack – an organization with expertise in supporting charter school Boards. With guidance from BoardOnTrack, the Board will conduct an annual evaluation of the Executive Director. The Board evaluates the Executive Director against the School Performance Framework provided by the district and State. In addition, the Board examines the annual financial report, district financial report, and financial audits, as well as the district’s operational scorecard to inform the Executive Director’s evaluation around finance and operations. e. Explain how the interests of individual schools will be balanced with network interests and how key stakeholders will be represented. As previously indicated, each school will have an advisory council. In accordance with Tennessee Code § 49-13-109, an advisory school council shall consist of no fewer than five (5) members and shall include the Principal, at least one (1) parent, and at least one (1) teacher representative. Parent and teacher membership will be determined by election. In addition, at least one community member who is active in the area in which the school resides will also be appointed to each advisory council to ensure that constituencies of each school are also represented. In short, advisory councils serve to identify and represent the specific interests of individual schools in the network. Advisory councils will convene quarterly to discuss needs, identify areas for improvement, pinpoint problems, and recommend solutions. Following every meeting, each advisory council will submit a report detailing the council’s conversations, needs, and recommendations among other pertinent information to the Board. Each Principal on an advisory council will also attend Board meetings to further explain the needs and requests identified in reports. Upon hearing from individual school’s Principals and receiving council reports, the Board will determine what further school-specific actions need to be taken in response to each councils’ input. Accordingly, based on individual needs, the Board may elect to adopt school-specific Page 56 policies, such as implementing varying pay scales, employing retention bonuses, and enacting sports compensation policies. In short, advisory councils will ensure that the interests of individual schools are balanced with network interests. The Board will ensure active and effective representation of key stakeholders through the following: • Parent Representation: As explained above, a parent whose child is currently enrolled in one of our schools in operation is an active Board Member. Additionally, upon approval of the charter and opening of the proposed school, a parent whose child is enrolled in our school in Cordova will be appointed to the Board. These members lend key parent voice and representation of the Hickory Hill and Cordova areas of Memphis to the Board. • Advisory Councils: As indicated above, each school will have an advisory council. In accordance with Tennessee Code § 49-13-109, an advisory school council shall consist of no fewer than five (5) members and shall include the Principal, at least one (1) parent, and at least one (1) teacher representative. In addition, at least one community member who is active in the area in which the school resides will also be appointed to each advisory council to ensure that constituencies of each school are also represented. Every council will meet quarterly and, upon convening, will submit a report to the Board for review. Advisory council reports, as well as further information provided by Principals who reside on councils, will ensure that school stakeholders are actively and effectively represented. • Tennessee Open Meetings Act: All Board meetings are open to the public; the Board encourages all stakeholders to regularly attend. Board meeting dates, agendas, minutes, and policies are published on MSE’s website. Stakeholders may request hard copies of public Board artifacts. • Parent-Teacher Organization: Each school in operation has an active Parent-Teacher Organization (PTO) that meets regularly to discuss matters related to the school’s operation and programming. Each PTO employs a robust governing structure, which can consist of the following elected officers: President, First Vice President, Second Vice President, Secretary, Treasurer, Assistant Treasurer, and Parliamentarian and Liaison Officers. After PTO meetings, the President or his/her designee will meet with the Principal to relay comments, concerns, and ideas. The Principal will then share relevant information with the Board for consideration. • Stakeholder Input: The Board values community stakeholder input and will regularly solicit feedback from stakeholders, such as parents, community members, local businesses, and community hubs through methods such as surveys, presentations, meetings, and forums. f. Will the charter be held by the same existing non-profit board or will a new board be formed? The charter will be held by the same existing nonprofit Board. • If the existing board will also govern the new school: o Include a copy of the by-laws and organizational chart, with emphasis on what changes, if any, will need to take place at the board level for it to be effective (i.e., add members, redistribute roles, responsibilities, etc.). See Attachment F. Page 57 o Discuss any plans to transform the board’s membership, mission, and by-laws to support the charter school expansion/replication plan. Describe the plan and timeline for completing the transition and orienting the board to its new duties. Transformation of the Board’s membership, mission, and by-laws. As previously indicated, in anticipation of replication, the Board recently appointed additional members, increasing membership to six directors. In addition, upon approval of the charter and opening of the proposed school, another parent will be appointed to the Board to ensure parent voice and representation of the Cordova area of Memphis. The Board’s mission and by-laws will not change; the crux of the mission is to provide effective oversight and support to ensure each school is successful. The by-laws as adopted also allow for robust membership, as well as a healthy officer and committee structure; thus, they do not need to be amended. They already dictate effective governance guidelines for multiple schools. Transition and orientation plan. As stated above, the existing Board will serve as the Governing Board of the proposed school. Since the proposed school will replicate the exact same focus and grade structure, the Board is already very familiar with the proposed school’s academic and cultural programming, as well as operations. However, to ensure that the Board is fully oriented to the proposed school, the Board president and secretary will organize an orientation program that will include the selected Principal of the proposed school to certify that s/he also fully understands the role responsibility of the Board. The goals of the orientation will be to: • Communicate and discuss the mission, vision, and goals of the proposed school • Define the roles and responsibilities of the Board • Provide an overview of the proposed school’s educational program • Discuss the bylaws of the Board • Discuss Open Meetings Act and pertinent laws relative to charter schools As indicated throughout this section, the Board will appoint another parent to serve on the Board within six months of the school’s opening. To orient the new parent Board Member, as well as any future new member, the Board will provide a robust orientation to ensure s/he quickly becomes familiar with Board duties, responsibilities, policies, and practices. New member orientation will cover topics such as: • Mission and vision • Academic focus and plan • Key design elements • Cultural and parent programming • Demographic data and student enrollment A thorough summary of MSE’s approved charter applications, as well as the roles and responsibilities of the Board, officers, and committees and key Board policies will be provided. New members will receive a binder that houses the above information, as well as Board agendas, minutes, and handbooks. In addition to the initial and new Board Member orientations, the Board will participate in development activities throughout the year. As indicated above, the Board has partnered with Page 58 BoardOnTrack, which specializes in developing charter Board capacity. The Board will engage in development activities facilitated by and/or provided by BoardOnTrack throughout each school year to continuously expand capacity and grow knowledge. Development topics may include the following: • Supporting and evaluating the Executive Director • Archiving documents and cultivating institutional memory • Simplifying processes and streamlining board logistics • Engaging in coaching calls from Board experts • Participating in member-only webinars, virtual coaching, and on-demand training and resources to learn about best practices The Board will also engage in other professional development, including at least one annual Board training as mandated by Tennessee law. Other activities may include: • Literature: The Board may study publications that relate to the school’s academic programming and student population, such as Making Science by Christa Flores. In addition, the Board may read titles related to building Board capacity, including Board Meetings: A Guide for Charter Schools and Board Structure: A Guide to Bylaws, Officers and More! both authored by Marci Cornell-Feist. • School Visits: The Board may visit schools that are successfully implementing similar programming to learn more about best practices. • Community Events: The Board may engage in events provided by local foundations and organizations that align to and support the MSE’s mission, vision, and programming. Orientation timeline. The Board will adhere to a timeline such as the following around orientation and development activities: • Initial board orientation for proposed school: Within one month of the school’s opening • Orientation for new member: Within one month of appointment • Capacity building activities: Ongoing • Board retreat: Annually • If a new board will be formed: o Describe how and when the board will be created and what the relationship between the two boards will be (including any overlapping responsibilities). Please include biographies of the new board members, roles and responsibilities needed to govern the new school, organizational chart, and governing board structure. If available, include the by-laws of the new governing board. Please indicate if the charter will ultimately be held by the existing non-profit or a different non-profit board. If the latter, explain the transition. Not applicable. Page 59 2.14 Charter School Management Contracts (for existing operators, if applicable) If the proposed school intends to contract with a charter management organization (CMO) or other education service provider (ESP) for school management, provide the following information as Attachment N: a. An explanation of how and why the CMO was selected; b. A term sheet setting forth the proposed duration of the contract; roles and responsibilities of the school governing board, the school staff, and the service provider; scope of services and resources to be provided by the CMO; performance evaluation measures and mechanisms; detailed explanation of compensation to be paid to the provider; financial controls and oversight; methods of contract oversight and enforcement; investment disclosure; and conditions for renewal and termination of the contract; c. A draft of the proposed management contract; d. Disclosure and explanation of any existing or potential conflicts of interest between the school governing board and proposed service provider or any affiliated business entities; and e. Documentation of the service provider’s non-profit status and evidence that it is authorized to do business in Tennessee. Not applicable. Page 60 2.15 Personnel/Human Capital - Network-wide Staffing Projections (for existing operators) Complete the following table indicating projected staffing needs for the entire network over the next five years. Include full-time staff and contract support that serve the network 50% or more. Change or add functions and titles as needed to reflect organizational plans. If the proposed school plans to use a staffing model that diverges from the school staffing model in the original application, please explain. While we have modified the titles of positions since our original application, such as changing the title of the Assistant Principal to the Academic Coordinator, as well as have created network-level leadership positions as we have expanded, our core staffing model has not changed since submission of the original application for each school in our network. Year Number of elementary schools Number of middle/high schools Total Schools Student Enrollment Network Positions Executive Director Director of Operations Director of Academics Director of Finance HR & Federal Programs Manager Technology Coordinator Power School and Engagement Coordinator Instructional Coaches Special Education Coordinator RTI Coordinator ESL Coordinator Total back-office FTEs Elementary School Staff 5 Principal Academic Coordinator Dean of Students Classroom Teachers (Core Subjects) Year 1 2020-2021 2 Year 2 2021-2022 2 Year 3 2022-2023 2 Year 4 2023-2024 2 Year 5 2024-2025 2 2 2 2 2 2 4 1,272 4 1,445 4 1,545 4 1,645 4 1,670 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 4 4 1 5 1 10 12 13 5 1 1 1 15 5 1 1 1 15 1.5 1.5 1 1.5 1.5 2 1.5 1.5 2 1.5 1.5 2 1.5 1.5 2 24 28 35 35 35 5 We currently operate two schools in Hickory Hill; our elementary school facility also houses grades 6-8 of our middle and high school, so some positions are shared across the school building, which accounts for the partial positions reflected in the staffing chart. Page 61 Classroom Teachers (Specials/SPED/Intervention) Counselor Business Manager Teacher Aides and Assistants Secretaries Total FTEs at elementary schools Middle/High School Staff Principal Academic Coordinator Dean of Students Counselor Classroom Teachers (Core Subjects) Classroom Teachers (Electives/SPED/Intervention) ISS Teacher Business Manager Teacher Aides and Assistants Secretaries Total FTEs at middle/high schools 14 14.5 17 18 18 1 .75 1 3 2 .75 1 3.5 2 1 1 3.5 2 1 2 3.5 2 1 2 3.5 47.75 54.75 64.5 66.5 66.5 2.5 2.5 2 2 2.5 2.5 3 3 2.5 2.5 3 4 2.5 2.5 3 4 2.5 2.5 3 4 38 42 44 48 52 17 18.5 25.5 25.5 25.5 1.25 .5 1.25 .5 2 .5 2 .5 2 5 5.5 5.5 5.5 5.5 70.25 78.75 89.5 93.5 97.5 Page 62 2.16 Personnel/Human Capital – Staffing Plans, Hiring, Management, and Evaluation In this section complete the following, if not previously addressed (in 2.4): a. Describe the organizational structure of the proposed school. Network-level leadership will oversee and support all MSE schools. With guidance and support from organization-level leadership, school-level leadership will lead the day-to-day operational and academic functioning of the school. As such, our organizational structure will include: Network-level Leadership ● Executive Director: The Executive Director serves as the leader of the network and is ultimately responsible for ensuring that the network as a whole, as well as each school within the network, succeeds. The Executive Director oversees and supports Principals and ensures that they run effective, high-quality schools. As such, the Executive Director is tasked with making high-level, strategic decisions, including the oversight and hiring of network-level leadership and Principals, establishment of organization-wide expectations, implementation of organizational systems, business processes, and academic and cultural programming – all of which must align with, and support, MSE’s mission and vision. The Executive Director also manages vendor relations, contract oversight, food service, facilities, and security and safety systems. The Executive Director is responsible for cultivating a healthy culture across the organization – one of accountability, collaboration, and collegiality. The Executive Director reports to, receives support from, and is evaluated by, the Board of Directors. ● Director of Operations: The Director of Operations provides leadership and robust support around operational aspects across the network, including oversight of student and parent engagement, technology, counseling programs, 504 plans, and athletic and sports programming. The Director of Operations also assists the Executive Director with the oversight of school Principals and the Director of Academics. In addition to providing support to, and receiving training from, the Executive Director, the Director of Operations supports the Technology Coordinator and Human Resources and supports the Federal Programs Manager to ensure that systems and policies related to technological infrastructure, human capital, and federal programs operate effectively and comply with all local, State, and federal laws, regulations, and statutes. The Director of Operations reports to, receives support from, and is evaluated by, the Executive Director. ● Director of Academics: The Director of Academics is responsible for overseeing, implementing, and supporting the network’s academic programming, including instruction, assessment, and professional development. While the Executive Director is ultimately responsible for the success of the network, as well as the success of the individual schools operating across the network, the Director of Academics is also held accountable for the academic performance of each school. The Director of Academics oversees the network’s instructional coaches, as well as manages the Academic Coordinators at the school level. Additionally, the Director of Academics is responsible for the oversight of Response to Instruction and Intervention (RtI2), special education, English language learners, and gifted and talented programming. Accordingly, the Director of Academics oversees and provides support to the Special Education Coordinator and English-as-a-Second Language Coordinator to ensure that students with special needs and who are English language learners receive Page 63 ● ● ● ● curricular and instructional support, accommodations, modifications, and language services as mandated by law and as outlined in individual education plans and language learner plans. The Director of Academics reports to, receives support from, and is evaluated by, the Executive Director. Director of Finance: The Director of Finance is responsible for the financial health and sustainability of the network. The Director of Finance oversees the financial aspects of the network, including budget development, payroll preparation, accounts payable and receivable, and grant reimbursements. The Director of Finance also reports monthly to the Tennessee Consolidated Retirement System. The Director of Finance works closely with the Executive Director to ensure budget allocations reflect and support the operational and academic needs of the network. The Director of Finance, in collaboration with the Executive Director, also works with Principals, supporting them in school-based budgeting and financial decisions. The Director of Finance reports to, receives support from, and is evaluated by, the Executive Director. Special Education Coordinator: The Special Education Coordinator is tasked with overseeing the special education program and services across the network. With support from the Director of Academics, the Special Education Coordinator supports all schools operating in the network in ensuring full legal compliance; in creating, implementing, monitoring, and updating individual education plans; and in ensuring that students receive all needed and mandated modifications, accommodations, services, and supports. The Special Education Coordinator also oversees the execution of RtI2 and the gifted learner programming. The Special Education Coordinator reports to, receives support from, and is evaluated by, the Director of Academics. English as a Second Language (ESL) Coordinator: The ESL Coordinator is responsible for the oversight and implementation of the English language learner programming across the network. The ESL Coordinator supports schools operating in the network in ensuring full legal compliance and in providing students with all necessary and mandated language services and supports. The ESL Coordinator works with the Director of Academics to ensure that language learner students have full access to all academic programming. The ESL Coordinator also works hand-in-hand with the Special Education Coordinator to ensure that language learner students with special needs, as well as those who require intervention or enrichment, receive all needed supports and services. The ESL Coordinator reports to, receives support from, and is evaluated by, the Director of Academics. Technology Coordinator: The Technology Coordinator oversees all technology-related functions across the network, including supporting the implementation of educational technology initiatives, the installation of technology tools and systems, management and maintenance of technological systems and equipment, oversight of technological inventory, and provision of technology support to schools and individuals across the network. The Technology Coordinator also works with the PowerSchool and Engagement Coordinator to support the technological needs around effectively implementing PowerSchool. The Technology Coordinator reports to, receives support from, and is evaluated by, the Director of Operations. Page 64 ● PowerSchool and Engagement Coordinator: The PowerSchool and Engagement Coordinator will be tasked with overseeing the implementation of PowerSchool across the network. The PowerSchool and Engagement Coordinator ensures that PowerSchool is effectively employed to house and manage student data, including grades and attendance records. The PowerSchool and Engagement Coordinator lends robust direct support to school leaders and staff across the network in the effective and proper utilization of the PowerSchool database and receives technological support from the Technology Coordinator. The PowerSchool and Engagement Coordinator also oversees student, parent, and staff engagement activities, as well as the network’s home visit program. The PowerSchool and Engagement Coordinator reports to, receives support from, and is evaluated by, the Executive Director. ● Human Resources and Federal Programs Manager: The Human Resources and Federal Program Manager is responsible for maintaining and enhancing the network’s human capital through the planning, implementation, and evaluation of staff relations and human resource programs, practices, and policies. The Human Resources and Federal Program Manager also ensures full legal compliance with all human resource-related local, State, and federal rules, regulations, requirements, and laws. The Human Resources and Federal Program Manager is also tasked with overseeing the Principals in the implementation of all relevant federal programs to ensure full compliance with all applicable rules, regulations, requirements, and laws. The Human Resources and Federal Program Manager reports to, receives support from, and is evaluated by, the Executive Director. School-level Leadership: ● Principal: The Principal is responsible for, and given the autonomy to lead, the day-to-day academic and operational functioning of the school. Among the responsibilities with which the Principal is tasked are hiring and evaluating school staff, ensuring the effective execution of the school’s academic and cultural programming, and cultivating a safe and positive school culture and learning environment. The Principal reports to, receives support from, and is evaluated by, the Executive Director or Director of Operations. ● Academic Coordinator: While the Principal is responsible for, and held accountable to, the school’s academic performance, with support from the Director of Academics, the Academic Coordinator is tasked with directly implementing the school’s academic program. The Academic Coordinator works closely with instructional staff, supporting the development and execution of instructional plans and assessments anchored in the school’s curricula. The Academic Coordinator also oversees the creation and implementation of teacher improvement plans. The Academic Coordinator reports to, receives support from, and is evaluated by, the Principal. The Academic Coordinator also receives support from the Director of Academics. ● Dean of Students: The Dean of Students is responsible for overseeing the cultural and behavior management aspects of the school. The Dean of Students is fundamental in maintaining a positive and safe school environment and provides support and directs resources to students who are struggling behaviorally and/or social-emotionally. The Dean of Students also handles all discipline-related issues. The Dean of Students reports to, receives support from, and is evaluated by, the Principal. Page 65 ● Counselors: Counselors are responsible for tracking and making recommendations about student attendance, truancy, and transcript data. In addition, a primary component of our school culture is emphasis on college readiness. Counselors not only ensure students are ontrack to matriculate/graduate through regular reviews of transcripts, they also help students in developing their post-secondary goals and plans. Counselors aid students in identifying colleges and university that meet their individual learning needs. Counselors also assist students in the college and financial aid application process. b. Provide the school organizational chart as Attachment G. See Attachment G. c. Delineate the relationship of the school organization to the network organization as a whole. The network as a whole has two schools currently in operation – an elementary school and a middle and high school, both of which are located in the Hickory Hill neighborhood of Memphis. The network is proposing to open two additional schools, both of which will replicate the exact grade structure and focus of its counterpart in Hickory Hill. In 2020, we project that the two additional schools – one elementary school and one middle and high school – will open in the Cordova area of Memphis, for a total of four schools in operation across our network. We do not have plans to expand or replicate additional schools at this time. Each school that is a part of the network will be overseen and supported by network-level leadership. However, each school will have a school leadership structure independent of network leadership. School-level leadership will be responsible for the day-to-day operational and academic functioning of the school. School-level leadership will also be tasked with managing and evaluating school staff. See Attachment G for our school organizational chart and Attachment M for our network organizational chart. d. Describe the operator’s current or planned process for sourcing and training potential school leaders. Explain how you have developed or plan to establish a pipeline of potential leaders for the network as a whole. If known, identify candidates already in the pipeline for future positions. Sourcing and training potential school leaders. We fully appreciate the importance of cultivating a cadre of potential school leaders. To establish a robust pipeline, we have successfully implemented a program entitled, “Grow Your Own Administration,” at our two schools currently in operation. The program targets teachers who have expressed interest in building capacity around leadership skills, indicated the desire to transition to administration in the future, and have at least two years, teaching experience with track records of success educating students and working with parents. Once identified, staff will complete a formal tuition and service agreement, and school leadership will work with candidates to pinpoint the leadership programs best suited for their current skill sets and desired leadership outcomes and roles. For instance, candidates may pursue a Masters of Science in Leadership or Masters of Education degree or may elect to receive development and training through Ops360. Once candidates are enrolled in leadership programs, MSE will reimburse tuition of up to $10,000 per year for up to three years. Tuition reimbursement does require that candidates formally agree to remain employees of MSE Page 66 for two years. To date, six staff members have successfully completed the program, and five more are currently participating in the program. As we continue to grow with the opening of our proposed school, newly-hired teachers who demonstrate success in their classrooms, as well as articulate the desire to learn about, and transition to, school administration will be eligible for the program, which will deepen our pool of potential school leaders. Identified candidates for future leadership positions. As indicated above, six staff members have successfully completed the program. We intend to utilize them in key leadership roles at our proposed school. More specifically, we anticipate these individuals eventually filling the leadership roles of Principal, Academic Coordinator, Dean of Students, Director of Academics, and Human Resources and Federal Programs Manager. Since our proposed school will replicate the exact grade structure and focus of our existing schools, these future leaders have valuable, extensive experience with our mission, vision, model, academic and cultural programming, policies, and procedures. Such institutional knowledge and experience, coupled with the skills learned through the successful completion of their leadership programs, will better ensure the smooth opening and operation of our school. Pipeline development of potential leaders for the network as a whole. In addition to our “Grow Your Own administration” program described above, we also have strategically enacted the following to create a viable pipeline of potential leaders for the network as a whole: ● Hired a Director of Operations: We recently hired a Director of Operations. This person has extensive expertise in, and experience with, overseeing and managing educational, operational, and financial processes, as well as academic programming. The Director of Operations intentionally works closely with the Executive Director to provide support, as well as receive training and development, around the role and responsibilities of the Executive Director. In addition, the Director of Operations is tasked with supporting and overseeing the Technology Coordinator, including completing his/her formal evaluation, as well as providing to support to the Human Resources and Federal Programs Manager. Accordingly, we have strategically structured the working relationship between the Executive Director and Director of Operations, as well as assigned the Director of Operations to support and oversight roles, to ensure that he is able to seamlessly assume the role of Executive Director if ever needed. ● Cross-train Organization-level Leadership: Just as we have intentionally developed and positioned the Director of Operations to be able to smoothly take over the role of Executive Director if needed, we have strategically embedded cross-training tasks and duties within the roles and responsibilities of other organization-level leadership positions to ensure they are ready and able to assume other organization-level leadership roles if needed. For instance, the Director of Finance works closely with the Director of Operations in understanding the operational processes and needs of the organization. The Special Education Coordinator and ESL Coordinator work closely with, and receive training from, the Director of Academics, who, in turn, receives training and development in supporting and evaluating staff. In short, organization-level leadership roles are not siloed and were intentionally designed to enable cross-training across positions, which deepens and strengthens the pipeline of leaders at the organization level. ● Prepare School-level Leadership: As outlined above, organization-level leadership works closely with school-level leadership, especially with the Principal and Academic Coordinator. Page 67 Such collaboration not only ensures that school-level leadership receives ample support in executing their current roles but also provides valuable development and training in the event a school-level leader is tasked with assuming an organization-level leadership role. e. Describe your organization’s strategy and plans for recruiting and hiring teaching staff, including the plan for hiring highly qualified staff. Explain other key selection criteria and any special considerations relevant to your school design. ● Strategy and plans for recruiting and hiring highly-qualified teaching staff. To ensure that we are able to recruit and hire highly-qualified teaching staff, we will implement a robust recruitment plan. Central to our recruitment efforts will be the advertisement of the extensive supports we will provide for our teachers. More specifically, we will highlight that every teacher is assigned an instructional coach who will be provided with individualized support through observation and feedback cycles, as well as unit and lesson plan design and implementation support. We will also emphasize that we believe in autonomy with oversight; we will allow our teachers to innovate and adapt curricula and instructional plans as long as instruction is anchored in, and aligns to, grade-level Common Core State Standards, Next Generation Science Standards, and/or Tennessee Academic Standards, as applicable. Instructional coaches and/or the Academic Coordinator will review all lesson plans on a weekly basis. Since we believe in creativity and innovation, as well as instructional oversight, we will highlight that every teacher will have two daily planning periods to enable teachers ample time to create and revise plans. Further, we will also advertise our extensive assessment and data supports. We will explain how leadership will create all benchmark exams for teachers. In addition, we will offer an electronic test center, which will enable teachers to enter tests and have scantrons created and graded by the center. The center will also allow teachers to assign standards to every question. The center will provide teachers with easy access to disaggregated data to the question and standard level, as well as by subpopulation, cohort, and individual student levels, to inform upcoming instructional plans. To support teachers in using the center and becoming fluent in data, we will discuss how we will offer robust professional development and support around data-driven instruction throughout the year. Further, we will advertise that we will implement a “Grow Your Own Administration” program, which builds leadership capacity and opportunity within the MSE organization through mentorship and tuition reimbursement. We will additionally highlight that we will provide a moving stipend for teachers who have to relocate more than 50 miles as a result of accepting employment at MSE. As such, we will implement the following actions to recruit and inform highly-qualified candidates about our school. ● Place Advertisements: We will advertise teaching vacancies through numerous outlets, including in local print and online newspapers, on local radio stations, on our website and social media accounts, on other websites, including the Teach For America (TFA) Alumni site, and the Tennessee Department of Education’s recruitment and referral site, as well as on jobs boards, such as Christian Brothers University, Union University, Bethel University, University of Memphis, Vanderbilt University, Students for Education Reform, Teach901, Idealist.org, Teach.org, WantToTeach.com, Teachers-Teachers.com, EducationCrossing.com, LinkedIn, Indeed.com, SchoolSpring.com, Monster, and Top School Jobs. Page 68 ● Attend Job Fairs: We will attend multiple job fairs, including Teach901 and Christian Brothers University, among others. ● Network with Higher Education Institutions: We have established a relationship with Christian Brothers University. Our relationship with the university provides us access to teacher candidates who are highly-qualified. In addition, we are currently in the process of establishing relationships with the University of Memphis and Bethel University, which will enable us to connect with their highly-qualified pool of teaching candidates. ● Build Relationships with Local Education Organizations: We plan to establish and leverage relationships with local education organizations that can help us in recruiting highly-qualified teaching candidates. Among the organizations with which we intend to work are Memphis Teacher Residency and TFA Memphis. ● Leverage Current School Stakeholders: We will call on the stakeholders employed and educated by, as well as involved in, our existing schools to advertise vacancies to their own professional and/or personal networks. We enjoy a deep pool of active school stakeholders who will serve as spokespeople for the school, informing us about and connecting us to potential high-quality candidates. Additionally, we will implement a teacher referral program for staff employed by MSE, excluding hiring Managers, Principals, Assistant Principals, Human Resource Staff, hiring committee members and directors at the network level. If a staff referral results in the hiring of a teaching candidate and that candidate works for MSE for a minimum of 90 days, the referring staff member will receive a stipend. In addition to the actions above, we also intend to transfer some of our staff who teach at our school currently in operation to the proposed school upon opening. Since we are proposing to replicate the exact same grade structure and focus, teaching staff at our current school have valuable knowledge of and experience in implementing our mission, vision, academic and cultural programming, and school policies and procedures. The placement of current teaching staff at our proposed school will better ensure continuity of our model and practices across the organization. Additionally, transferred staff will be positioned to provide support and insight to those new to MSE. Even with our robust recruitment plan, we understand that recruiting and hiring simultaneously for two new schools will pose a challenge. In anticipation of that, we already have identified and will hire the Principals of this proposed school and of the school being proposed in a separate charter application by January 1, 2020, so that they may begin working mid-way through the preopening year. More specifically, Principals will be employed full-time on pre-opening contracts, which will enable them to fully participate in essential pre-opening activities, including hiring. Prior to Principals assuming their part-time work loads, network-level leadership will have already implemented many of the recruitment actions described above, which will ensure that Principals have a foundational pool of candidates from which to draw. Additionally, since its opening in 2010, MSE has been compiling a job application database. Currently, our database contains more than 1,500 instructional candidates from which we can hire. Further, our two other schools in operation in Hickory Hill will almost be fully grown by the 2020-21 school year. We have an approximate 90% staff retention rate, so minimal hiring will have to be done to fill Hickory Hill vacancies. Further, we will identify staff who will transferred from Hickory Hill to Cordova early in the pre-opening year, allowing the network and school ample time to hire for Page 69 those positions. Given our extensive recruitment plans and teacher database, as well as strategic pre-opening year Principal start dates, current retention rates, and early identification of staff that will be transferred, we are confident that we will be able to fill all vacancies with high-quality staff. Key selection criteria. Every MSE-hired staff member, regardless of title and position, will demonstrate a firm commitment to the following key selection criteria: ● Implementing MSE’s mission and vision ● Supporting high-quality, rigorous instruction for every student ● Holding high expectations for every student ● Working to achieve MSE’s goals ● Showing respect for all members of the MSE community Special Considerations: To ensure that we hire high-quality teachers and staff, the following special considerations will also be taken into account: ● Hold high-qualified status in accordance with Every Student Succeeds Act (ESSA), as applicable ● Demonstrate evidence of producing positive student outcomes, as applicable ● Possess expertise in and experience with science, technology, engineering, and mathematics (STEM), as applicable f. Explain how the organization intends to handle unsatisfactory leadership or teacher performance, as well as leadership/teacher changes and turnover. Unsatisfactory leadership performance. The Executive Director will ultimately be held accountable for the success of the school. The Board of Directors will evaluate the Executive Director annually in accordance with the evaluation procedures and criteria outlined in the Network Governance section. If the Board determines that the Executive Director’s performance is unsatisfactory, the Board will act swiftly, enacting steps such as the following: ● Design a Corrective Action Plan - the design of the corrective action plan will include the following: o Outline specific and measurable actions, expectations, and desired outcomes o Include a detailed timeline for progress monitoring o Receive formal approval from the Board of Directors ● Implement the Corrective Action Plan - the implementation of the corrective action plan will entail the following: o Monitor closely the implementation of, as well as progress made toward, the plan by the Board of Directors o Adhere to the plan’s timeline for implementation, monitoring, and progress made ● Evaluate Employment Status - the evaluation of employment status will encompass the following: o Consider employment status if monitoring reveals insufficient progress has been made in accordance with the determined timeline o Terminate employment only after exhausting every avenue and effort to remedy unsatisfactory performance Page 70 The Principal will be accountable for the day-to-day operation of the school, as well as for achieving school-specific goals. The Executive Director will be tasked with evaluating the Principal. If the Executive Director determines that the Principal’s performance is unsatisfactory, s/he will act swiftly by immediately placing the Principal on a growth plan as follows: ● Design a Growth Plan - the design of the growth plan will include the following: o Outline specific and measurable actions, expectations, and desired outcomes o Detail resources to be allocated as supports for growth (e.g., coaching, targeted professional development, assignment of a mentor) o Include a detailed timeline for progress monitoring o Receive formal approval from the Executive Director ● Implement the Growth Plan - the implementation of the growth plan will entail the following: o Monitor closely the implementation of, as well as progress made toward, the plan by the Executive Director o Adhere to the plan’s timeline for implementation, monitoring, and progress made ● Evaluate Employment Status - the evaluation of employment status will encompass the following: o Consider employment status if monitoring reveals insufficient progress has been made in accordance with the determined timeline o Terminate employment only after exhausting every avenue and effort to remedy unsatisfactory performance Unsatisfactory teacher performance. If the results of formal and/or informal evaluation and observation indicate that a teacher is struggling to provide high-quality instruction and effective classroom management that results in positive student outcomes, the following steps will be taken: ● Create an Improvement Plan - the creation of an improvement plan will entail the following: o Outline specific and measurable actions, expectations, and desired outcomes o Detail resources to be allocated as supports for growth (e.g., more frequent coaching, targeted professional development) o Include a detailed timeline for progress monitoring o Receive formal approval from the Principal ● Implement the Improvement Plan - the implementation of the implementation plan will involve the following: o Monitor closely the implementation of, as well as progress made toward, the plan by the academic coordinator o Adhere to the plan’s timeline for implementation, monitoring, and progress made ● Evaluate Employment Status - the evaluation of employment status will encompass the following: o Consider employment status if monitoring reveals insufficient progress has been made in accordance with the determined timeline o Terminate employment only after exhausting every avenue and effort to remedy unsatisfactory performance Page 71 Leadership changes and turnover. The continuity of leadership is critical to the success of the network as a whole, as well as to individual schools operating in the network. As such, every effort will be made and every available resource will be exhausted prior to termination, especially if the school year is in session. If, after exhausting all courses of action, the Board determines the termination of the Executive Director is absolutely necessary, or in the unlikely event that the Executive Director decides to resign from his/her position, the Board will create and enact a leadership transition plan to guide the network through leadership changes and turnover. Similarly, if after exhausting all courses of action, the Executive Director determines the termination of the Principal is absolutely necessary, or in the unlikely event that the Principal decides to resign from his/her position, the Executive Director will create and enact a leadership transition plan to guide the school through leadership changes and turnover. Teacher changes and turnover. The continuity of instruction is paramount to students’ success and to the success of the school. Accordingly, every effort will be made and every available resource will be exhausted prior to termination, especially if the school year is in session. If, after exhausting all courses of action, the Principal, with the Executive Director’s approval, determines the termination of a teacher is absolutely necessary, or in the unlikely event that a teacher resigns from his/her position, the Principal, with support from the Executive Director and other networklevel leadership, will create and enact a teacher transition plan and immediately begin the hiring to fill the vacancy. Page 72 Section 3: Finances 3.4 Financial Plan (for existing operators NOT required to complete Sections 3.1 and 3.2) In this section: a. Describe the systems and processes by which the organization will manage accounting, purchasing, payroll, and audits. Specify any administrative services expected to be contracted; and describe the criteria and procedures for the selection of contractors. While Memphis School of Excellence contracts with outside parties for bookkeeping services and the production of monthly financial statements, payroll, and audits, the Director of Finance (with oversight from the Executive Director) is responsible for all aspects of the financial management of the network, including: budget development and analysis of budgets to actuals; payroll processing; accounts payable and receivable; grant reimbursements; retirement reporting; and financial compliance with local, State, and federal government agencies. The Director of Finance works closely with the Executive Director to ensure the use of financial resources reflects and supports the operational and academic needs of the network. The Director of Finance, in collaboration with the Executive Director, also works with Principals, supporting them in schoolbased budgeting and financial decisions. • Accounting & Payroll – MSE uses Whitehorn Tankersley & Davis, PLLC for Accounting/ Bookkeeping Services and payroll processing. • Purchasing – See MSE’s internal controls, processes, policies, and procedures manual, which has been included as Attachment P. • Audits – MSE’s Board of Directors and network and school leadership teams recognize the vital role an independent financial audit plays in the long-term success of the organization. MSE contracts with an auditing firm each year (and currently works with Cannon Wright Blount). Each Spring, the auditing firm presents to the MSE Board an overview of the audit process, as well as the roles and responsibilities of all parties. After the audit is complete, the audit report and findings are presented to the MSE Board and copies of the final audit report are forwarded to the TN Comptroller’s office, as well as Shelby County Schools. b. If applicable, describe the fiscal health of other schools in your network. Are any of the schools on fiscal probation or in bankruptcy? The current schools operated by Memphis School of Excellence are not on fiscal probation and not in bankruptcy. Since MSE opened its first school in Shelby County in 2010, its schools have been financially healthy as evidenced by strong balance sheets and balance sheet ratios (including cash reserves) – as well as its ratings on SCS’ financial scorecard. For example, on the 2015-16 and 2016-17 financial scorecards (the last available scorecards for the organization), MSE scored a 4.93 out of 5 and 4.29 out of 5, respectively. c. Present, as Attachment P, a detailed budget narrative describing assumptions and revenue estimates. See Attachment P Page 73 d. Include any committed contributions or in-kind donations of goods or services to be received by the charter school that will assist in evaluating the financial viability of the school. You should clearly indicate between those grants or in-kind donations which have already been firmly committed and those you are planning to pursue. For grants or donations that you are planning to pursue provide the source, estimated amount of contribution, and expected date of receipt if known. Memphis School of Excellence may pursue private funding from local and/or national foundations to further strengthen its academic programming, support for students, and for facilities. Grants would potentially support college-preparation programming, extracurricular activities, student support services, and facilities-related needs. MSE does believe it is important to be able to operate its core programming on public revenues for long-term sustainability and has diligently established a strong balance sheet with adequate cash reserves to do so. The Executive Director of the organization is responsible for cultivating relationships with potential donors and applying for grant funding. e. Provide 24-month cash flow projections. Cash Flow Projections for the Fiscal Years (July 1, 2019 – June 30, 2020; and July 1, 2020 – June 30, 2021) have been included as Attachment Q. f. Detail the contingency plan to meet financial needs if anticipated revenues are not received or are lower than estimated. As evidenced in MSE’s cash flow statements for the 2019-20 and 2020-21 fiscal years -- and the organization’s consolidated 6-year budget -- MSE is projecting to continue to have a healthy cash balance, even with the start-up costs for two new schools in the Cordova area. Should revenues from the Basic Education Program (BEP) not be as expected, MSE would make reductions in staff and operating expenses necessary to align expenses with reduced revenues. The organization would also seek a line of credit to bridge any cash flow needs created by the timing of revenue receipts. g. Describe Year 1 cash flow contingency, in the event that revenue projections are not met in advance of opening. As mentioned in subsection (f), MSE is projecting to continue to have strong cash flow balances going forward ($1.5M at the end of the 2018-19 fiscal year; $1.9M at the end of the 2019-20 fiscal year; and $3.2M at the end of the 2020-21 fiscal year. Because of its strong cash flow balances, and history of achieving budget surpluses, MSE will be able to absorb the start-up costs of MSE Cordova, even if it did not receive start-up funds from public or private grants. MSE is planning to apply for start-up funding from the TN Department of Education, as well as the Walton Family Foundation, which would provide additional resources for school start-up expenses. h. Explain how the organization will reach its fundraising goals over the next five years. Provide a development plan that includes staffing needs. As mentioned in subsection (d), MSE may pursue private funding from local and/or national foundations to further strengthen its academic programming, support for students, and for Page 74 facilities-related needs. The Executive Director is responsible for cultivating relationships with stakeholders, including local and national donors in the pursuit of private funding. MSE does believe, however, that it is important to be able to operate its core programming on public revenues for long-term sustainability and has diligently established a strong balance sheet with adequate cash reserves to do so. The organization has also historically achieved budget surpluses, which will further strengthen the organization’s cash reserves. As such, private fundraising has not been included in the budgets for Memphis School of Excellence or MSE Cordova in the interest of conservative budgeting. i. Provide, as Attachment O, a detailed budget for the proposed school, and as Attachment Q, the network budget as a whole. You may reference school-level budgets provided in the original application, as appropriate. Applicants must submit financial forms detailing: • A back-office budget • Financial implications of facilities plans • All major assumptions including but not limited to: o Student enrollment; o All anticipated funding sources3, including:  Local, State, and federal per-pupil funding; eligibility levels; and annual increases;  Other government resources;  Private fundraising;  eRate; and  Student fees; • Total employee compensation (network/CMO level), including the percentage of the total compensation allocated for the proposed school; • Line items for each major expense and delineation of assumptions (at the school level only), including: o Instructional materials and supplies; o School equipment and furniture; o Technology for student and instructional use; o Professional development; o Student assessments; o Student information system; o Special education services; o Student activities; o Contracted services at school (audit, I/T, PD, etc.); o Rent and utilities; o Office supplies and equipment; o Technology for administrative use; and o Fundraising materials and resources (non-staff); • School start-up costs; • Management fees and any other management compensation to the CMS or network (if applicable); Page 75 • • Facility scenarios; and Capital, contingency, and insurance reserve funds. See Attachment O and Q. Page 76 Section 4: Portfolio Review/Performance Record 4.1 Past Performance For applicants with only one school in their network, please mark not applicable where necessary. In this section: a. Describe your existing educational program and whether or not it is a success. Explained in more detail below, our elementary school that is in the Hickory Hill neighborhood of Memphis does not yet have historical data, including State assessment results, from which to inform a judgment about success. We are only in our second year of operation and are just serving grades kindergarten through five this school year. However, the results of easyCBM mathematics assessments administered to second through fourth grade students in the Fall and Winter of this school year are strong. More specifically, of the 19 second grade students who took the assessment in the Fall and Winter, all but one showed growth. Of the 20 students who took the Winter assessment, 14 scored in the 89th percentile and 3 scored in the 100th. Third grade students also demonstrated great growth, with 17 out of 22 students improving their scores from the Fall. Additionally, 11 out of 24 students scored in 89th percentile, and 3 scored in the 100th. Further, of the 19 fourth grade students who took the assessment in the Fall and Winter, 11 demonstrated growth on the Winter administration; 15 out of 21 students who took the assessment in the Winter scored in the 89th percentile and 1 scored in the 100th. Additionally, our middle and high school has been in operation since 2010 and has consistently been successful as indicated by SCS school performance framework ranking, State assessment results, TVAAS scores, ACT results, graduation rates, student retention rates, and stakeholder survey results. We have replicated the key design elements of our educational program that resulted in the consistent success of our middle and high school at the elementary level; they are: ● Enriched Curriculum: Our curriculum and learning environment provides all students with access to engaging, stimulating, and rigorous curriculum. More specifically, our curriculum is personalized, inquiry-based, and aligned, as applicable, to the Common Core State Standards, Next Generation Science Standards, and Tennessee Academic Standards. STEM is infused across our academic program, and students have ample opportunities to apply their learning through projects and science fairs. In addition, all students take a STEM class that employs the Code.org curriculum. We also have a robotics club that meets regularly and expands on the STEM concepts and skills learned during the school day. Members have the opportunity to compete in local, State, and national competitions. The club currently active at our school in Hickory Hill has enjoyed numerous wins and top placements in competitions over the last several years. Further, we will implement Math Counts and American Math Competition as extracurricular activities, which will also serve to further reinforce and extend STEM skills and concepts learned during the school day. ● Technology Integration: To support our STEM focus, as well as equip students with the technology skills needed to succeed in the 21st century, all students take a technology class as an elective. This class teaches and reinforces the fundamentals of effectively using a Page 77 computer, as well as exposes students to more complex STEM-related concepts and activities through the implementation of code.org curriculum, which enables students to master the fundamental, as well as more advanced, principles and concepts of computer science. Additionally, the technology classroom is outfitted with a three-dimensional (3-D) printer, which allows students to participate in numerous STEM projects, such as creating the specifications for, and printing, a working prosthetic hand, among other items. Additionally, technology is infused across other disciplines. Laptops and iPads are readily available for teachers to use during instruction, and classrooms are outfitted with technological tools such as document cameras and SMARTboards to utilize during instruction. We also provide a fullyoutfitted computer lab. Our robust integration of technology across contents and classrooms through the use of computer-based programs such as Accelerated Reader, Accelerated Math, iReady, MobyMax, Kuta, and Study Island, as well as digital curricular resources, equips students with critical skills and enables us to implement our STEM focus. ● Standardized and Authentic Assessment: To ensure that students are mastering the standards and content taught through our enriched curriculum, we implement a robust assessment program. We administer all required State standardized assessments, as well as regular benchmark assessments to gauge student proficiency on pre-established benchmarks of learning at specific points in time. Benchmarks are formative and summative, allowing teachers to adjust instruction to meet the needs of every student and enabling teachers to discern proficiency rates. We also measure student growth through administrations of the Northwest Evaluation Association Measures of Academic Progress (NWEA MAP) assessment three times a year. Our authentic assessment system works to complement the standardized assessments we administer. Teachers collect and analyze student work over time; work samples and teacher observations are housed in student portfolios, enabling teachers and students to see progressive growth. ● Effective Intervention: All students have individualized learning plans that guide, and are responsive to, students’ individual learning needs. We also provide numerous tutoring opportunities, including before and after school, on Saturdays, as well as with peers and mentors. For students in need of additional academic and/or behavioral support, we implement a robust Response to Instruction and Intervention (RtI2) program to ensure that all students receive the support they need to be successful. We also provide robust English language learner programming to ensure that students who are acquiring English language proficiency receive all needed and legally-mandated services and supports. ● Robust Support for Instructional Staff: To ensure that our instructional staff provides rigorous, high-quality instruction and effectively implements our academic focus and model, we provide robust supports. More specifically, every teacher is assigned an instructional coach who provides individualized support through observation and feedback cycles, as well as unit and lesson plan design and implementation support. Every teacher has two daily planning periods to enable teachers ample time to create and revise plans. Further, we provide extensive assessment and data supports. Leadership creates all benchmark exams for teachers. In addition, we offer an electronic test center that enables teachers to enter tests and have scantrons created and graded by the center. The center also allows teachers to assign standards to every question. The center provides teachers with easy access to disaggregated data to the question and standard level, as well as by subpopulation, cohort, Page 78 ● and individual student levels, to inform upcoming instructional plans. To support teachers in using the center and becoming fluent in data, we offer robust professional development and support around data-driven instruction throughout the year. Further, we implement a “Grow Your Own Administration” program, which builds leadership capacity. Parental Involvement: We believe that parents are our partners. We actively engage parents and community members in the life of our school. We build strong family-school partnerships that will strengthen support for learning and encourage parent involvement through methods such as the following, which are thoroughly described in the Community ● Parent Board Member ● Parent-Teacher Conferences ● School Advisory Council ● School Events ● Parent-Teacher Organization ● Volunteering Opportunities ● Orientations ● Parent Information Room ● Meet-and-Greets ● Parent Recognition Program ● Home Visits ● Adult Education Classes ● Communication Methods (school website, social media, school database, parent mobile application, language translation services, monthly newsletter, phone calls, emails, inperson communications, suggestion boxes) ● Parent Academy b. Provide detailed student achievement and growth results for each school in the network as Attachment R. See Attachment R. Page 79 c. Have the schools in the network demonstrated success in raising student achievement levels by meeting/exceeding state and national standards for most students? Our elementary school that is in the Hickory Hill neighborhood of Memphis does not yet have historical data, including State and national assessment results. We are only in our second year of operation and are just serving grades kindergarten through five this school year. However, our middle and high school has been in operation since 2010 and has consistently been high-performing and has a solid track record of academic success by raising student achievement levels – even in 2016, when Tennessee moved to more rigorous State standards and tests, which resulted in a significant decline in student proficiency rates across Shelby County and the State. Despite the more challenging academic environment, MSE has performed well among its peers in math and English Language Arts – as well as in academic growth. On SCS’ 2016-17 School Performance Framework (which measures academic achievement and growth, college graduation and readiness, and school climate), MSE ranked #8 of 78 middle and high schools in the district and #4 of all charter schools in Shelby County. Page 80 In 2017-18, MSE ranked #12 of 82 middle and high schools in the district and # 6 of all charter schools in Shelby County on the School Performance Framework. Page 81 Among the 42 high schools in Shelby County, MSE ranked #8 on the 2017-18 School Performance Framework. Page 82 In English/Language Arts proficiency, MSE has performed in the top 20% of all High Schools in the district over the past two academic years. Page 83 MSE has consistently achieved strong TVAAS scores over the past 5 years, achieving a Level 4 or 5 in four of the last five years. Page 84 Further, since its first graduating class in 2014, MSE has consistently graduated nearly 100% of its seniors. ● 2014: 100% graduation rate ● 2015: 100% graduation rate ● 2016: 100% graduation rate ● 2017: 98% graduation rate ● 2018: 100% graduation rate Snapshot of 2017 and 2018 Graduating Classes Class of 2017 • • • 40 graduates 31 (77.5%) matriculated into post-secondary institutions 19 into a 4-year college 12 into a 2-year college $3.9M earned in scholarship funding Class of 2018 • • • 52 graduates 41 (78.8%) matriculated into post-secondary institutions 23 into a 4-year college 16 into a 2-year college 2 into a Technical college $5.8M earned in scholarship funding Page 85 MSE has significantly increased its ACT score average over the past 5 years (from 13.8 in 2014 to 18.8 in 2018). Page 86 Page 87 Excel Center B. T. We shington High Hamilton High Sheffield High Northwest Prep Academy Menesses High Westwood High Trezevent High Oekheven High Mitchell High Raleigh-Egypt High Wooddale High Kirby High Melrose High Dougless High Creigm ont High City University Kingsbury High East High Memphis Academy of Health Sciences High Memphis Business Academy High KIPP Memphis Collegiate High Southwind High Ridgewey High Overton High Cordove High Memphis Academy of Science Engineering Whitehaven High Power Center Academy High I Memphis School of Excellencel Bolton High Central High Freedom Preparatory Academy Soulsville Charter Hollis F. Price Middle College High Germantown High Middle College High White Station High 15 0 10.0 0.0 9" c: SCS High Schools 2017-2018 Academic Year 20.0 25.0 ACT Scores MSE is ranked in the top quartile of all SCS high schools in ACT average. MSE ranks #5 among all SCS high school in terms of the percentage of its graduates who are “College Ready” (i.e., score a 21 or higher on the ACT and graduate on time). Page 88 d. If applicable, provide the graduation rates for each school in the network. Since graduating our first class in 2014, we have consistently graduated nearly 100% of our senior students. The chart below details our graduation rate by year: Year 2014 2015 2016 2017 2018 Graduation 100% 100% 100% 98% 100% Rate e. Using the Portfolio Summary Template, provide a detailed summary of all of the schools in the operator's portfolio as Attachment S. See Attachment S. f. Select one or more of the consistently high-performing schools that the organization operates and discuss the school’s performance. ● Be specific about the results on which you base your judgment that the school is high-performing. ● Discuss the primary causes to which you attribute the school’s distinctive performance. ● Discuss any notable challenges that the school has overcome in achieving its results. ● Identify any ways in which the school’s success has informed or affected how other schools in the network operate. Explain how the effective practice or structure or strategy was identified and how it was implemented elsewhere in the network. Results. Our elementary school that is in the Hickory Hill neighborhood of Memphis does not yet have historical data, including State assessment results, from which to inform a judgment about performance. We are only in our second year of operation and are just serving grades kindergarten through five this school year. However, our middle and high school has been in operation since 2010 and has consistently been high-performing. The following results inform this judgment about our middle and high school: ● SCS School Performance Framework Ranking: On SCS’ School Performance Framework in 2017-18, we ranked #12 of 82 middle and high schools in the district and #8 of 42 high schools. ● State-Mandated Assessment Results: Since opening, we have consistently improved our State-mandated assessment scores. Further, our scores have been in the top 10% of all SCS schools since 2014. ● Tennessee Value-Added Assessment System (TVAAS) Scores: We have consistently achieved strong TVAAS scores over the past 8 years, achieving a level 4 or 5 in seven of the last eight years. ● ACT Results: We have significantly increased our ACT average score over the past 5 years (from 13.8 in 2014 to 18.8 in 2018). We are in the top quartile of all SCS high schools for ACT average. We also rank #5 among all Shelby County Schools (SCS) high schools in terms of the percentage of graduates who are college-ready. These successes contributed to MSE being recognized by US News and World Report, which ranked us the #1 charter high school in Tennessee and #26 among all high schools in the State. Page 89 ● Graduation Rates: Since our first graduating class in 2014, we have consistently graduated nearly 100% of seniors. More specifically, we achieved graduation rates of 100% from 201416 and, as well, in 2018, and a 98% graduation rate in 2017. Further, in 2018, 100% of graduates were accepted into college, the majority of whom participated in the TN Promise Program and collectively earned over $6M in scholarships. ● SCS Operational Scorecard: MSE received the highest operational scorecard among all charter schools in 2016 6, 2017 7, and 2018 8. ● Student Retention Rates: We have historically retained the vast majority of our students. More specifically, we have maintained an approximate 90% student retention rate from yearto-year – one of the highest in the district. ● Survey Results: We administer surveys to our staff, parents, and students every year to collect qualitative data about the state of the school. Surveys ask stakeholders to provide input around, as well as rate,- various aspects of our school, including leadership, the academic program, and culture and climate, among other indicators. Survey data consistently indicates that staff, parents, and students approve of, and enjoy, our school. ● Extracurricular Competition Placements: As explained in more detail below, we offer numerous extracurricular activities for our students, some of which involve participating in competitions. Our competing clubs have experienced great success, including: o Science Olympiad Team: In the 2018-19, the team placed second out of twelve in the Memphis City competition; we have placed every year that we have participated. o Robotics Team: In 2016, the team placed second out of 41 teams in the West Region Tennessee competition. In 2013, the team placed first out of 26 teams in the West Region Tennessee competition. In 2012, the team placed third out of 46 teams in the West Region Tennessee competition. Primary Causes of Distinctive Performance. We attribute our school’s distinctive performance to the following primary causes: ● Small Class Sizes: Our average class size is 24. This low student-to-teacher ratio enables teachers to provide individualized, differentiated instruction to meet the needs of every child enrolled in their class. Our small class sizes also allow teachers to form supportive, trusting relationships with their students, as well as positions students to be able to foster meaningful relationships with each other. We firmly believe the academic and cultural benefits of small class sizes has greatly contributed to our success. ● Benchmark Assessment and Tutoring System: Students are assessed every six weeks in contents that are tested through State-mandated assessments. The Academic Coordinator creates all benchmark assessments to ensure that every test aligns with the standards and accurately gauges students’ levels of proficiency and progress toward mastery of standards. After each benchmark administration, teachers analyze students’ scores, the results of which inform upcoming instructional plans. In addition, benchmark results determine student groupings for, and the focus of, tutoring. More specifically, students whose benchmark results indicate that they require more support are assigned to tutoring. Based on individual 6 http://www.scsk12.org/calendar/files/2016/2016-Charter-Report.pdf http://www.scsk12.org/charter/files/2017/2017-CHARTER-ANNUAL-REPORT.pdf 8 http://www.scsk12.org/charter/files/2018/2018-CHARTER-REPORT.pdf 7 Page 90 ● ● ● ● students’ needs, students are either tutored during the school day during pull-out sessions that typically occur during electives, after school, or on the weekend during Saturday tutoring, which occurs every week from mid-January to mid-April. Further, benchmark results are examined during data meetings, during which the Academic Coordinator and instructional coach meet with teachers individually to set instructional goals and determine upcoming benchmark targets. Test Center: We created an electronic test center that enables teachers to enter tests and have scantrons created and graded by the center. The center allows teachers to assign standards to every question. The center provides teachers with easy access to disaggregated data to the question and standard level, as well as by subpopulation, cohort, and individual student levels, to inform upcoming instructional plans. College Readiness: A primary component of our school culture is emphasis on college readiness. We employ two full-time counselors who work in collaboration with grade-level teachers and closely with students directly around college readiness. Counselors not only ensure students are on-track to graduate through regular reviews of transcripts, they also help students in developing their post-secondary goals and plans. Counselors aid students in identifying colleges and university that meet their individual learning needs. Counselors also assist students in the college and financial aid application process. In addition, we host an annual college fair and offer a practice ACT program to further build a college-readiness culture on campus. School Community Focus: We intentionally cultivate a positive school culture for students, parents, students, and staff. More specifically, throughout the year, we hold a number of school events for students and families. Many of these events are academic in nature, such as curriculum nights, during which teachers and staff review upcoming curricula with parents so that they are fully informed about what their child(ren) is/are learning. In addition, we host multiple social events for families so that staff, students, and parents can come together as a community. Among these events are festivals, food and clothing drives, and dinners and banquets. We will also hold assemblies, such as honor roll celebrations throughout the year to celebrate students and the school and cultivate school spirit. Further, we will offer events just for our parents; these events enable parents to interact and build relationships with school staff. For example, we have regular Muffins for Moms and Donuts for Dads meetings. In addition, we engage in team-building activities as a staff every month. This team-building is critical to staff forming and maintaining positive, collegial relationships, which fosters a collaborative and respectful staff culture. Home Visits: In addition to building strong partnerships with parents through our school community focus as described above, we also implement a robust home visit program. Home visits enable teachers to make authentic connections with their students and students’ families. During home visits, teachers engage students and families in conversations about the school and about themselves. Teachers provide strategies and suggest activities in which students and parents can engage together that reinforce and extend what is learned at school. Teachers also support parents in using the school’s database and parent mobile application (described below), which serve as the primary communication methods between home and school. Page 91 ● Parent Communication: We believe that parents are our partners and need to be fully informed about their child(ren)’s progress, which, in turn, better enables parents to hold their child(ren) accountable for their learning. To that end, parents are able to access information about their child(ren) though our school database and parent mobile application. Teachers post upcoming class activities, assignments, and projects, as well as record students’ grades so that parents can receive timely updates about their child(ren)’s progress and achievement. Assessment data are also available through the database and application, so that parents can access benchmark and other test scores. Additionally, behavioral and attendance data will be contained in the database, so parents can track their child(ren)’s conduct, as well as be alerted to absences and tardies. Further, the database serves as a direct link between teachers and students. Teachers and parents are able to leave notes for and send electronic communications to each other, enabling frequent and fluid communications. ● Extracurricular Offerings: While academics are our primary focus, we believe that extracurricular activities contribute to our students’ success and positive learning outcomes. Accordingly, we offer students the opportunity to participate in a number of sports, including volleyball, basketball, soccer, track, cross-country, baseball, softball, bowling, and cheerleading. Participation in athletics position students to gain critical skills that translate to the classroom, including collaboration, cooperation, and teamwork. We also have multiple clubs that students may join, such as Drama, Robotics, Math Counts, Science Fairs, American Math Competition, Science Olympiad, National Junior Honor Society, National Honor Society, Bingo, and Board Games Club. Like sports, clubs encourage students to collaborate and work together. In addition, clubs reinforce and extend academic learning. For example, students in the robotics club apply principals and concepts learned during their mathematics, science, and technology classes. Challenges. We faced and overcame two notable challenges in achieving our results. These challenges are: ● In 2012, our test scores resulted in us being placed on the priority list in the bottom 5% of all schools across the State. Our low performance and placement on the priority list caused us to examine our data, as well as our systems and structures to identify the root causes of poor student outcomes, which were determined to be: 1) instruction was not aligned to Common Core State Standards and/or Tennessee Academic Standards; and 2) students did not receive enough instructional time in English language arts (ELA) and mathematics. In response, we modified our professional development plans to provide sessions and implementation support around designing and delivering standards-based instruction, implemented a standardized lesson plan structure, provided an electronic test center, and modified our daily schedule to provide students with double blocks of ELA and mathematics instruction – all of which is described below in more detail. Resultantly, our test scores improved, and we were removed from the priority list in 2014. Additionally, our scores have been in the top 10% of all SCS schools since 2014, and we have achieved a Level 4 or 5 TVAAS score in seven of the last eight years. ● In 2014, our ACT average was ranked as one of the lowest across the State. In examining factors that contributed to this poor performance, we noted that students were testing poorly on math questions. In response, we began to offer ACT Bridge math – a class for credit Page 92 – that provides a comprehensive review of math concepts tested on the ACT. We also pinpointed the lack of ACT test preparation and support as a root cause. Accordingly, we created and implemented an after-school ACT tutoring program, which has been successful in raising scores. The tutoring program is implemented by grade-level teachers who use the results of practice ACT assessments to inform the tutoring focus for each session. Both of these offerings have proven successful. We have significantly increased our ACT average score over the past 5 years, from 13.8 in 2014 to 18.8 in 2018. We are now in the top quartile of all SCS high schools for ACT average. Network Operation. Upon deciding and receiving approval to open our elementary school, which is currently in its second year of operation, we strategically located the elementary school to the same grounds as the middle school so that both schools would be in very close proximity. The closeness of the two schools enabled middle school leadership to also oversee the elementary school upon opening. We intentionally structured overlapping oversight of the elementary and middle school so that we could replicate the key design elements (described above) to which we directly attribute the consistent high performance of our middle and high school. Since middle school leadership had valuable knowledge of, and experience in, implementing and managing our systems and structures, we were able to replicate them with fidelity at the elementary school. Of the replicated best practices, our benchmark assessment and tutoring system stands as the most impactful. More specifically, upon implementing our benchmark assessment and tutoring system (described above) in 2010 at the middle and high school, we observed the positive impact it had on students’ test scores on State-mandated assessments. After implementation, we have consistently improved our State-mandated assessment scores. Further, since 2014, our scores have been in the top 10% of all SCS schools. To ensure efficient and effective replication, the Academic Coordinator was tasked with overseeing the creation and implementation of the benchmark assessment and tutoring system at the elementary level. She ensured that instructional staff received professional development around the system so that they fully understood how and why benchmarks are created; administration procedures; how to analyze and apply results to inform instruction and tutoring groupings; and how to set goals based on results. In addition to overseeing the system at the elementary school, the Academic Coordinator also continued to manage the benchmarks and tutoring at the middle and high school to ensure the system was implemented with fidelity and continuity at both schools. In addition to replicating our benchmark assessment and tutoring system in our elementary school, during the 2017-18 school year, we also helped another charter school organization implement the system in their schools. More specifically, this network has three schools operating across their organization. Each school within the network was not performing well on State-mandated assessments and was not demonstrating student growth as evidenced by TVAAS scores of 1s. After seeing the successful results of our test scores and high operational scorecard, the organization contacted us for support. After implementing our system for just one year, each school saw a significant improvement in their test and TVAAs scores, which went from 1s at all three schools to a 2, 4, and 5 in 2018. Page 93 g. Select one or more of the organization’s schools whose performance is relatively low or not satisfactory and discuss the school’s performance. Be specific about the results on which you base your judgment that performance is unsatisfactory. ● Describe the primary causes to which you attribute the school’s problems. ● Explain the specific strategies that you are employing to improve performance. ● How will you know when performance is satisfactory? What are your expectations for satisfactory performance in terms of performance levels and timing? As explained above, our elementary school that is in the Hickory Hill neighborhood of Memphis does not yet have historical data, including State assessment results, from which to inform a judgment about performance. We are only in our second year of operation and are just serving grades kindergarten through five this school year. However, our middle and high school, which has been consistently high-performing since 2014 as discussed above, experienced low, unsatisfactory performance in the initial years after opening. Primary Causes. As indicated above, in 2012, our test scores resulted in us being placed on the priority list in the bottom 5% of all schools across the State. Our middle school English language arts, mathematics, and science scores were very low, 8.82%, 2.45%, and 8.82% proficient and advanced respectively, and greatly contributed to our priority status. Upon isolating our middle school scores, we analyzed our instructional practice, systems, and structures, and identified two primary causes of such unsatisfactory performance: ● Instruction was not aligned to Common Core State Standards and Tennessee Academic Standards as evidenced by test scores, informal and formal teacher observation data, and reviews of instructional plans. ● Students were not receiving enough instructional minutes in ELA and mathematics to master the content; most students enrolled below grade level and needed additional time to build foundation skills to enable them to engage in and master grade-level standards and content. Strategies for Improvement. To remedy the primary causes of unsatisfactory performance as described above, we successfully implemented the following strategies for improvement: ● Professional Development: To ensure that instruction aligned to Common Core State Standards and Tennessee Academic Standards, we first examined our professional development plans and realized that we were not offering sufficient professional development around implementing standards-based instruction. As a result, we immediately altered our professional development calendar and dedicated a number of professional development sessions to the following: o Understanding and unpacking the standards o Writing standards-based learning objectives o Determining specific learning outcomes to indicate if students mastered learning objectives o Designing instructional plans, including learning activities and assessments, aligned to and driven by standards-based objectives and desired learning outcomes o Analyzing data sources to identify objectives that were not mastered and creating reteach plans ● Standardized Lesson Plan Structure: In addition, we also implemented a standardized lesson plan structure to support teachers in creating instructional plans with standards-based Page 94 learning objectives and outcomes that aligned to learning plans and activities. As indicated above, we provided robust professional development around the lesson plan structure. Further, we required all teachers to submit their plans to be reviewed by the Academic Coordinator, who provided intensive implementation support in revising, as well as creating plans. We ensured that every teacher had two daily planning periods so that they would have ample time to engage in purposeful planning and revision. ● Test Center: We created an electronic test center that enables teachers to enter tests and have scantrons created and graded by the center. The center allows teachers to assign standards to every question. The center provides teachers with easy access to disaggregated data to the question and standard level, as well as by subpopulation, cohort, and individual student levels, to inform upcoming instructional plans. Providing our teachers with the ability to disaggregate data in multiple ways and student groupings has cultivated a robust culture of data-driven instruction, which as greatly contributed to our success. ● Additional Time for Core Instruction in ELA and Mathematics: We modified our daily schedule to enable students to received additional time for core instruction. More specifically, we implemented double ELA and mathematics blocks so that students received a total of 90 minutes of instruction in each subject. The double blocks ensured that students had ample time to engage in ELA and mathematics. The double blocks also provided teachers the time they needed to provide individualized remediation and/or intervention to struggling students in need of support. Expectations for satisfactory performance. We have established the following academic measures and targets, which outline our expectations for satisfactory performance: ● SCS School Performance Framework (SPF) Rankings: We have set a minimum target of 3.5 on our annual SPF rankings. ● State-Mandated Assessment Results: To be deemed satisfactory, we expect that the percentage of students scoring on-track plus mastered on State-mandated assessments will meet our Annual Measurable Objective every year. Proficiency rates at each grade level and subject will exceed the district average by at least 10 percentage points each academic year. At each grade level and subject, 50% of the students who have been enrolled in an MSE school for three consecutive years will be proficient. ● Tennessee Value-Added Assessment System (TVAAS) Scores: We expect that our combined TVAAS score is at minimum a 3 each year. ● ACT Results: We established the target of at least an 18.8 average ACT score each year, with at least 40% of students scoring 21. ● Graduation Rates: We have set 100% as our target annual graduation rate. h. For all schools operating under another authorizer: provide, as Attachment T, the most recent performance/evaluation/renewal reports produced by the authorizer(s) (or by a third- party evaluator, if applicable). Not applicable. Page 95 i. For all schools operating in the state of Tennessee: provide the following in Attachment U: (a) the last two years of audited financial statements for each school or school(s); and (b) the most recent internal financial statements, including balance sheets and income statements. See Attachment U. j. List any contracts with charter schools that have been terminated by either the organization or the school, including the reason(s) for such termination and whether the termination was for “material breach.” Not applicable. k. List any and all charter revocations, non-renewals, shortened or conditional renewals, or withdrawals/non-openings of schools operated by the organization, and explain what caused these actions. Not applicable. l. Explain any performance deficiencies or compliance violations that have led to formal authorizer intervention with any school operated by the organization in the last three years and how such deficiencies or violations were resolved. Not applicable. m. Identify any current or past litigation, including arbitration proceedings, by school, that has involved the organization or any charter schools it operates. If applicable, provide in Attachment V: (1) the demand, (2) any response to the demand, and (3) the results of the arbitration or litigation. Not applicable. Page 96 Additional Information Required by SCS 2019 Charter Application Supplement To supplement Section 1.2 Enrollment Summary, please elaborate on the need of the community in your selected region. The need for a charter school in a given region may be any or all of the following: • Academic – the other public schools in the region are underperforming and would benefit from your proposed charter option. • Over Enrollment – the other public schools in the region are over-enrolled or overcrowded and would benefit from your proposed charter option. • Programmatic– the other public schools in the region do not offer the program(s) the proposed charter would offer (e.g., language immersion; Montessori; agribusiness). Please attach the narrative describing the need for the proposed charter school in your selected region, using the defined categories and the Regional Seats Analysis to guide your discussion. The need for our proposed school is great. As explained in the Enrollment Summary section, Cordova has rapidly grown and continues to grow both commercially and residentially. While commercial facilities and housing developments have been built in response to this growth, the creation of enough new schools to accommodate the growing number of school-aged children has not kept pace with demand. More specifically, there are currently only two public middle schools and one high school operating in the Cordova area. Accordingly, Shelby County School’s (SCS) Regional Seats Analysis and 2019 Charter Application Supplement indicate that elementary schools in the East region of Memphis, where Cordova is located, are overenrolled. SCS’ Regional Seats Analysis specifically states that 785 more middle school seats are needed and 2,263 additional high school seats are needed at schools with a 3.00+ SPS – MSE earned a 4.25 in 2018. As explained throughout this application, MSE has a strong track record of success. Additionally, as depicted below, MSE outperformed the public middle and high schools currently in operation in Cordova. Page 97 Further, Memphis School of Excellence has significantly outperformed Cordova High School, which is currently the only high school serving students in that area. Memphis School of Excellence High School Cordova High School ACT Average Score 18.8 17.5 Graduation Rate (2018) 100% 87.3% Ready Graduate (% of students scoring above a 21 on the ACT) 31.7% 17.7% TVAAS (2016-2017) 5 1 TVAAS (2017-2018) 3 1 Math proficiency 16.3% 5.2% ELA proficiency 21.1% 17.6% Science proficiency 51.2% 21% Social Studies proficiency 22.3% 11.5% Page 98 Given SCS’ recommendation for additional high-quality middle and high school seats in the Cordova area, as well as MSE’s high performance rankings and outperformance of schools currently operating in Cordova, we contend that MSE will provide a much-needed high-quality option to serve middle and high students in Cordova. Page 99 February 26, 2019 To Whom it May Concern: Please accept this letter of support on behalf of the Memphis School of Excellence (MSE) Cordova campus. As you are aware, MSE has submitted an application to establish and open a charter school in the Cordova area. MSE’s STEM-focused education and small class size will provide students in Cordova a strong educational opportunity in these important areas. The Department of Education at Christian Brothers University has been working with MSE for several years. Our professors conduct PDs and teacher observations throughout the year. We are also looking forward to placing teachers at MSE campuses next year as part of our residency program. With Cordova schools operating over capacity, many parents and students would welcome the option of a charter school and I am confident that MSE’s history of success will enable them to provide the same experiences to students in the Cordova area. I am pleased to give my support to Memphis School of Excellence Cordova. Sincerely, Samantha M. Alperin, Ed.D. Chair, Professor of Education Director of Undergraduate and Graduate Programs (901) 321-3116 salperin@cbu.edu Page 100 March 7, 2019 Dear Shelby County School Board: On behalf of The Children?s Museum of Memphis, I am proud to declare our intent to collaborate with and support the School of Excellence Memphis. Access to high quality education is a critical component for all of the children in Memphis. Providing strong educational options is important to building and maintaining a healthy community. The Children?s Museum is committed to providing hands-on learning experiences for our guests and we believe that there is alignment between our mission and the work taking place at the School of Excellence Memphis. In recent years, the School of Excellence has proven a commitment to the success of their students by consistently performing well, growing quality programs, and cultivating a positive and supportive school culture. I am excited about the value the School of Excellence Memphis can add to the Cordova community. Building a successful partnership will benefit the educators, students, and families that are and will become a part of the school family. it is with great enthusiasm that we commit to be a collaborating resource for the School of Excellence Memphis at Cordova. If you have any questions, please contact me at (901) 458-2678 ext. 230 or Avis.Robinson@CMOM.com Sincerely, Maw Avis Robinson, Director of Education The Children?s Museum of Memphis Page 101 DEXTER RIDGE HOA March 01, 2019 Please accept this letter of support on behalf of the Memphis School of Excellence Cordova (MSE). As you are aware, MSE has submitted an application to establish and open a charter school in our area in order to better serve the needs of our students. STEM-focused education and small class size will provide students in Cordova with a strong educational opportunity. As past president of the homeowners association, I know that there are many parents and students in the neighborhood who are interested in a quality public school option. After meeting with MSE administrators, I am confident that history of success in Hickory Hill will enable them to provide the same experience to students in Cordova. I am pleased to give my support to Memphis School of Excellence Cordova. We look forward to welcoming them to the neighborhood. Sincerely, 6&sz Mum Eleanor Merrill Past President Dexter Ridge HOA Page 102 March 6, 2019 Charter Authorizer Review Committee Shelby County Schools 995 S. Lauderdale, Room 212 Memphis, TN 38126 Dear Review Committee: It is my pleasure to write a letter in support of the proposal Memphis School of Excellence (MSE) has presented to you seeking approval for their expansion in Cordova. As the Executive Director of Teach For America – Memphis, I believe that Memphis School of Excellence provides students with a foundational academic experience as well as one where they’re affirmed and given access to a multitude of opportunities to broaden their worldviews and make them competitive for college and careers. Teach For America has partnered with MSE since 2011 in the placement of our first and second year teachers. Mr. Turkay and his team of administrators and teachers have welcomed our corps members and established a strong culture and community of support for them and for the students and families they serve. We currently have over 20 current and former Teach For America corps members working across the three campuses, including 7 alumni who have chosen to stay beyond their corps commitment to continue their work with the MSE team. Based on MSE’s past record of success, as demonstrated by their local and national rankings and recognition, I believe they will add to the growing number of schools in our community that believe that every child can achieve at the highest level and that, when given the right supports and in partnership with many, students can transcend what demographics would otherwise predict for their futures and that we can all create a different paradigm of schooling that works with, not against, students’ success. I’m excited about what MSE’s expansion could mean for the infinitely talented students in Cordova and, at Teach For America, we’re committed to the successful continuation of our partnership. Thank you for your consideration of Memphis School of Excellence’s application. I know the school will be an asset to our students, the community of Cordova and our district. I look forward to working with MSE in the future and helping them build on the successes they have seen at their initial campuses. Sincerely, Mackenzie Smith Managing Director, Participant Operations, Teach For America Memphis 1350 Concourse Ave., Suite 437 • Memphis, TN 38104 • P 901 527-7510 F 901 521-8323 • www.teachforamerica.org Page 103 To whom it may concern, Please accept this letter as evidence of our support for the Memphis School of Excellence in Cordova. We feel that this school would fill a void for formal technical education in our community and offer additional options to families in the area. We value the STEM focused curriculum and feel that science, engineering, and math are key components to a good overall education and will prepare students for the tech jobs when the time comes. Having owned and operated Memphis Motorwerks at 9063 Macon Road for over 24 years, we have come in contact with hundreds of customers and their families. Schools are a common topic of conversation. We feel we also can express their support of the addition education opportunities that Memphis School of Excellence will offer Cordova students. Sincerley, MM David LaBarreare, Owner 9063 Macon Road 0 Cordovo, TN 380M) . 901l757-i009 595g "h Authorized Service To Whom it May Concern: Please accept this letter of support on behalf of the Memphis School of Excellence Cordova (MSE). As you are aware, MSE has submitted an application to establish and open a charter school in our area in order to better serve the needs of our students. MSE’s STEM-focused education and small class size will provide students in Cordova with a strong educational opportunity. As a resident of the Cordova area, I know that there are many parents and students in my neighborhood who are interested in a quality public school option. After meeting with MSE administrators, I am confident that MSE history of success in Hickory Hill will enable them to provide the same experience to students in Cordova. I am pleased to give my support to Memphis School of Excellence Cordova. We look forward to welcoming them to the neighborhood. Sincerely, Traci Smith Resident 38018 Page 105 March 4, 201-9 To Whom it May concern: Please accept this letter of support on behalf of Memphis School of Excellence, Cordova Campus (MSE). As you are aware, MSE recently applied for the establishment of a new charter school in our area. MSE's STEM?focused education and small student/teacher ratio will provide Cordova students the opportunity to reach high educational goals and achievement in grades K-12. As a pastor in the Cordova community at Advent Presbyterian Church for 33 years and now working part time in my retirement at the church, I believe our students and our community would greatly benefit from an additional public?school option. After reviewing the mission and history of MSE, I am confident that its success in Memphis, if granted the opportunity, will extend to Cordova as well. I am pleased to give my support for the establishment of Memphis School of Excellence, Cordova Campus, because it will offer another needed option for our community. i look forward to MSE becoming a part of our community. Sincerely, 24 m/ 5%er David A. Schieber, Minister to Senior Adults, Advent Presbyterian Church Page 106 To Whom it MayConcern: opportunity- SAILS ?eld coordinator, i know that MSE provides a quality public school option. After meeting with MSE administrators, I am con?dent that MSE history of sum in Hickory Hill will enable them to provide the same experience to student in Cordova. I have observed the classes there and was very impressed with the quality of education they have provided their students. This opportunity would enable them to bring that same quality to the Cordova area. with the administrative support the teachers feel they are more than willing to go above and beyond to bring quality education to the students daily. 8mm. 167/5416?) ?rye/M7 Brenda McCall Field Coordinator. Wen ?m Seamless Alignment and Integrated Learning Support (SAILS) Department of K-12 Initiatives Of?ce of Academic Affairs Phone: 901-413-7327 SAILS Of?ce: 615-365-1518 Page 107 Department of Computer Science Dunn Hall, 375 University of Memphis Memphis, Tennessee 38152-3370 Office: 901.678.3463 www.memphis.edu March 8, 2019 To The Charter Authorizer Review Committee: I am providing this letter of recommendation of support for Memphis School of Excellence Cordova. As a Faculty in the Department of Computer Science at University of Memphis, I've experienced that students with strong STEM background perform better. Therefore, having a STEM-focused curriculum would strengthen the background of students in science, engineering and math before they major a related field in a university or college. Currently, I have been personally offering coding classes as an after-school activity at MSE's Winchester location. I would like to continue and offer the same club in MSE Cordova Campus. I served as a board member for three years in Memphis School of Excellence's board. During this time, I had a chance to closely observe MSE's teachers and administrators. Their hard work and dedication for their students always impressed me and I felt fortunate to serve for such a successful school. I strongly believe that they would succeed in the Cordova area when they are given the opportunity. Therefore, I am pleased to support for the new establishment of Memphis School of Excellence in Cordova. Sincerely. Fatih Şen, Instructor, Ph.D. Computer Science University of Memphis An Equal Opportunity · Affirmative Action University Page 108 School of Public Health 339 Robison Hall Memphis, Tennessee 38152-3370 Office: 901.678.1340 Fax: 901.678.0372 www.memphis.edu/sph/people/f aculty_profiles/ullmann.php 3/8/2019 Muhammet Turkay Memphis School of Excellence 4450 S. Mendenhall Road Memphis, TN 38141 Dear Mr. Turkay: We are happy to confirm our intent to support the application of the proposed Memphis School of Excellence Cordova Campus and our willingness to work with MSE on health-related educational efforts. MSE is known for using innovative ways to inspire students’ learning process (https://www.commercialappeal.com/story/news/education/2017/04/07/memphis-school-3d-prints-prosthetic-arm-student/100133266/). The School of Public Health of the University of Memphis has been working with MSE for several years on projects to address the epidemic of childhood obesity. Free online tools such as FitKids (memphisfitkids.memphis.edu, https://www.ncbi.nlm.nih.gov/pubmed/?term=memphisfitkids) and FitWizard were developed by researchers at the University of Memphis to combat the sedentary habits and childhood obesity that threaten many students’ scholastic success. Researchers made teachers, students and parents aware about these tools. We will continue to work with MSE to guide parents, students and teachers to a healthy lifestyle, and we look forward to including the proposed MSE Cordova campus in our efforts to improve health for all students and their families. Sincerely, Gerhild Ullmann, PhD, CPH Research Assistant Professor, Div. Social and Behavioral Sciences School of Public Health The University of Memphis 339 Robison Hall, Memphis, TN 38152 USA 901.678.1340 ullmann1@memphis.edu https://www.memphis.edu/sph/people/faculty_profiles/ullmann.php An Equal Opportunity · Affirmative Action University Page 109 To Whom it May Concern: Please accept this letter of support on behalf of the Memphis School of Excellence Cordova (MSE). As you are aware, MSE has submitted an application to establish and open a charter school in our area in order to better serve the needs of our students. MSE’s STEM-focused education will provide students in Cordova with a strong educational opportunity. As a Recruiter, I know that there are many parents and students in my neighborhood who are interested in a quality public school option. After meeting with MSE administrators, I am confident that MSE history of success in Hickory Hill will enable them to provide the same experience to students in Cordova. I am pleased to give my support to Memphis School of Excellence Cordova. We look forward to welcoming them to the neighborhood. Sincerely, Shenay Nolan Page 110 Shelby County Schools Office of Charter Schools 160 S. Hollywood Street Memphis, TN 38111 To Whom It May Concern: On behalf of the Tennessee Charter School Center, I am writing to express our support of the proposed Memphis School of Excellence Cordova charter schools. At the Tennessee Charter School Center, we are committed to developing and supporting high-performing public charter schools while advocating for autonomy, accountability, and choice across public education in Tennessee. Over the years, Memphis School of Excellence has proven its ability to demonstrate meaningful growth and success for Shelby County students. MSE has earned Level 4 or 5 TVAAS score for six out of the last seven years. With a 100% graduation rate in 4 of the last 5 years and a 98% college acceptance rate, it is clear that MSE has discovered a method to move the needle for students in Memphis. Memphis School of Excellence’s mission is to provide a safe and collaborative environment by utilizing programs and strategies as well as math, science and technology tools to promote academic excellence, lifelong learning, and strong character development. MSE is a school that places an emphasis on developing creative approaches to problem solving and preparing students for secondary school and for their future careers as skilled professionals. TCSC is passionately committed to our belief that all families deserve access to high-quality public education options and opportunities. As the state’s primary charter school support organization, we have witnessed first-hand the transformative work that is happening in our charter school sector. We feel optimistic that Memphis School of Excellence’s new campuses will provide those high-quality seats for students in Cordova based on their performance over the last several years. Sincerely, Maya Bugg Chief Executive Officer Page 111 21118 Concordia Park Ln. Richmond, TX 77407 (512) 993-1893 davidcakdemir@harmonytx.org David C Akdemir, Ed.D Experience 2016 - Current Harmony Public Schools - Central Office Director of Leadership Development Houston, TX • Sets the vision and priorities of the leadership development team • Manages all work streams toward the vision • Collaborates closely with chiefs and area superintendents to implement leadership development programs • Uses data to drive decision-making about program content and structure • Ensures full implementation of leadership development initiatives in schools and districts • Leads group workshops and coaches individual rising leaders in select topics • Leads to organize annual leadership summit and regional development events, seminars, and workshops for leaders • Facilitates performance management systems for leaders that include TPESS (Texas Principal Evaluation and Support System) and HPESS (Harmony Performance Evaluation and Support System) • • • • • • Facilitates new leadership academies such as New Principals Academy Facilitates leadership coaching programs Facilitates organizational assessment programs for campus leaders Leads to maintain TEA required charter officer and administrator training Facilitates succession management system Facilitates online learning management system with assistants 2014 - 2016 Harmony Public Schools - Austin Area Superintendent Austin, TX • Functioned as the Superintendent for assigned cluster • Managed of human resources, maintenance, plant operations, facilities planning/management, construction and support services • Implemented selection, training, and supervision of personnel • Supervised school operations • Supervised and evaluated principals; serves as liaison between principals and the Superintendent and Chiefs; works with principals to resolve school-based concerns and problems; assists principals and teachers in striving for maximum student achievement • Supervised and conducted personnel administration duties for principals, including evaluating, assigning special duties, monitoring attendance and travel reports Page 112 • Supervised principals in analyzing school achievement data and to discuss implications for curriculum and instructional needs • Developed and administered the district/cluster budget in cooperation with Finance Department using sound fiscal practices • Ensured implementation of federal, state, and local mandated programs in relation to school site instructional and operational programs • Provided professional and leadership development to principals and leadership teams in conjunction with the Human Resources Department • Hired principals and cluster office personnel • Holds regular meetings with school Principals, cluster directors/coordinators and other administrators to discuss the progress and problems of the cluster • Directly monitored the work of cluster office personnel • Visited campuses regularly to coordinate support services with principals • Initiated and maintained ongoing and effective communication with community and parents regarding student achievement and school programs; supports schoolbased parent outreach programs and strategies to engage parents in student learning • Resolved conflict with administrators, parents, teachers, staff, and community regarding extracurricular activities • Assisted in determining school plant needs of the district by utilizing pupil projections, demographic studies, educational requirements, facilities requirements, and financial projections • Served as district resource person in dealing with legal issues regarding staff members • Implemented policies established by federal and state laws, State Board of Education rule, and local board policies • Supported the alignment of functions between schools and central office divisions • Worked with various committees and school administrative teams to review school’s staffing allocations and forecasted enrollments • Attended board meetings, and make presentations to the board 2010 - 2014 LISA Academy Principal/Superintendent Little Rock, AR • Coordinated and assisted teachers and students in implementing Arkansas Standards and Frameworks. • Provided professional development for teacher on state assessment standards. • Maintained and monitored records for ESL, GT and Special Education students. • Assisted an efficiency study to analyze how campus could be more fiscally resourceful. • Provided leadership and mentoring opportunities to assistant principals • Provided instructional resources and materials to support teachers in accomplishing instructional goals • Communicated and promoted expectations for high-level performance to staff and students. • Built common vision for school improvement with staff Page 113 • Directed planning activities and put programs in place with staff to ensure attainment of school’s mission. • Observed employee performance, recorded observations, and conducted evaluation conferences with staff. • Used student achievement data to recommend improvement in the purpose, design, materials, and implementation of the instructional program • Supervised maintenance of facilities to ensure a clean, orderly, and safe campus. • Ensured that school rules are uniformly observed and that student discipline is appropriate and equitable in accordance with Student Code of Conduct and Student Handbook. • Developed master schedule based on campus data. • Attended conferences, workshops, seminars, and disseminated relevant information to instructional team leaders and members • Used appropriate and effective techniques to encourage community and parent involvement. • Ensured the effective and quick resolution of conflicts. • Implemented Staff Hiring – Personnel Issues/Resolutions/Supervision/Staff Development – Planning and Execution 2009- 2010 LISA Academy Vice Principal/System Manager • • • • • • • • Little Rock, AR Managed academic programs for middle and high school classes Created and maintained class schedules Supervised teachers as Curriculum Director Provided High School Counseling for 8th grade and High School Students Managed Professional Development and Appraisal System Managed Student report cards and transcripts Managed Practice Mock Tests and State Tests Provided IT supports for servers, printers, computers and network 2008-2009 LISA Academy – North Little Rock Vice Principal/System Manager • • • • • • • • Sherwood, AR Managed academic programs for elementary and middle school classes Created and maintained class schedules Supervised teachers as Curriculum Director Provided High School Counseling for 8th graders Managed Professional Development and Appraisal System Managed student report cards and transcripts Managed practice mock tests and state tests Provided IT supports for servers, printers, computers and network Page 114 2004-2008 Dove Science Academy – Tulsa Computer Science Teacher/System Manager Tulsa, OK • Taught 6th, 7th and 8th grade Computer Classes including Keyboarding and Microsoft Office • Taught High School Computer Science classes including Desktop Publishing, Visual Basic, Video Production, Digital Graphics and Animation • Provided IT supports for servers, printers, computers and network 2003-2004 Dove Science Academy - OKC Oklahoma City, OK Computer Science Teacher Taught 6th, 7th and 8th grade Computer Classes including Keyboarding and Microsoft Office Education 2014 - 2016 Lamar University Beaumont, TX • Doctorate in Educational Leadership and Administration • Dissertation Titled “Perceptions of Teachers in a Charter School District Regarding Administrator Strategies That Contribute to Teacher Retention” 2011- 2012 University of Arkansas in Little Rock Little Rock, AR • Master in Educational Leadership and Administration 1997-2003 Middle East Technical University Ankara, TURKEY • B.S., Computer Education 1993-1997 Kartal Technical High School Istanbul, TURKEY • High School Diploma from Computer Science Interests Education, Educational Leadership, Leadership Development, Computers, Networking, IT, Programming, Soccer Licensure Areas Superintendent (EC-12) – Texas, Principal (EC-12) – Texas, Principal (EC-12) – Arkansas, Math Teacher (7-12) – Texas, Math Teacher (5-12) – Arkansas, Math Teacher (5-12) - Oklahoma Page 115 VEDA V. T. CHERRY 3228 Whisperwind Cove Memphis, TN 38125 404-277-5787 EDUCATION The George Washington University School of Law Juris Doctor, May 1995 Washington, DC The Georgia Institute of Technology Bachelor of Electrical Engineering, September 1991 Atlanta, GA Tougaloo College Bachelor of Science in Physics, Magna Cum Laude, May 1991 Tougaloo, MS LEGAL EXPERIENCE Cherry & Cherry, LLC Atlanta, GA (1/05-present) Member (Managing Partner) Established law firm in 2005. The firm’s primary practice areas are intellectual property law, business transactions, and entertainment law. The Institute of Paper Science and Technology, Inc. Atlanta, GA (6/98-12/04) General and Patent Counsel/Board of Trustees Secretary Reported to the President. Managed the intellectual property portfolio. Provided legal counsel, advice, and training in general and intellectual property matters. Outsourced projects to general and patent law firms and managed outside general and patent counselors. Performed in-house patent prosecution and oversaw outside patent prosecution. Drafted, reviewed, and monitored IPST service contracts, technology licenses, material transfer, secrecy and research agreements. Negotiated general and technology licensing agreements. Established, reviewed, and approved company policies. Chaired the IPST intellectual property management council that determines intellectual property strategy. Monitored and advised on anti-trust compliance at IPST industry meetings. Served as Secretary on the Board of Trustees, provided guidance in corporate compliance, and prepared the minutes for board meetings. Jones & Askew (merged with Kilpatrick-Stockton in 2000) Associate Atlanta, GA (9/95-5/98) Prepared and prosecuted patent applications in the fields of software and telecommunications and in the electrical and mechanical arts. Prepared patentability and non-infringement opinions and IP licenses. Handled trademark prosecution and trademark opposition matters. Prepared and negotiated intellectual property agreements. Advised and counseled clients in intellectual property matters. LICENSES AND MEMBERSHIPS State Bar of Georgia License, Registered U.S. Patent Attorney. State Bar of Georgia Association, Atlanta Bar Association. Page 116 BYLAWS Read Foundation 4450 S. Mendenhall Rd. St 1 Memphis, TN, 38141 ARTICLE 1 OFFICES Principal Office 1.01. The principal office of the Read Foundation (“Corporation”) shall be located at 4450 S Mendenhall Rd. St 1 Memphis, TN 38141. The Corporation may have such other offices, either in Tennessee or elsewhere, as the Board of Directors may determine. The Board of Directors may change the location of any office of the Corporation. Registered Office and Registered Agent 1.02. The Corporation shall comply with the requirements of the Act and maintain a registered office and registered agent in Tennessee. The registered office may, but need not, be identical with the Corporation’s principal office in Tennessee. The Board of Directors may change the registered office and the registered agent as provided in the Act. ARTICLE 2 BOARD OF DIRECTORS Management of the Corporation 2.01. The affairs of the Corporation shall be managed by the Board of Directors. Number Qualifications and Tenure of Directors 2.02. The number of Directors shall be no less than three (3). The number of the directors may be increased or decreased as needed by amendments by majority vote of the directors. Number of Directors may never be less than three (3). Directors need not be residents of Tennessee. Nomination of Directors 2.03. At any meeting at which the election a director occurs, a director may nominate a person with the second of any other director. In addition to nominations made at meetings, a nominating committee shall consider possible nominees and, make nominations for each election of directors. The secretary shall include the names nominated by the nomination committee, and any report of the committee, with the notice of the meeting at which the election occurs. Election of Directors 2.04. A person who meets any qualification requirements to be a director and who has been duly nominated may be elected as director. Directors shall be elected by the vote of the majority of the Board of Directors. Each director shall hold office until a successor is elected and qualified. A director may- [if desired, add: not] be elected to succeed himself or herself as director. Read Foundation Bylaws (Adopted on 4/13/2019) Page 117 Vacancies 2.05. Any vacancy occurring in the board of directors, and any director position to be filled due to an increase in the number of directors, shall be filled by the affirmative vote of a majority of the remaining board of directors. When a vacancy on the Board exists, nominations for new members may be received from present board members one week in advance of a board meeting. Annual Meeting 2.06. The annual meeting of the Board of Directors shall be held in the first two week of July of each year. The date of the annual meeting may be changed with a written notice by the President who shall also set the time and place of that delayed meeting. The president or the secretary shall give a written notice of the meeting to each director not less than five nor more than 30 days before the date of the meeting and shall post a written notice for general public as required in section 2.09 of this bylaw. Regular meeting 2.07. Regular meetings of the board shall be held at the principal office as noted online. Meetings days, hours and locations for the upcoming year will be posted in December of the previous year. The number of meetings may be increased or decreased by a resolution of the board. The president or the secretary shall give a written notice of the meeting to each director not less than five nor more than 30 days before the date of the meeting and shall post a written notice for general public as required in section 2.09 of this bylaw. Special Meetings 2.08. Special meetings of the Board of Directors may be called by or at the request of the president or any two directors. A person or persons authorized to call special meetings of the Board of Directors may fix any place for holding a special meeting. The person or persons calling a special meeting shall notify the secretary of the information required to be included in the notice of the meeting. Then, the secretary shall give a written notice of the meeting to each director not less than five nor more than 30 days before the date of the meeting and shall post a written notice for general public as required in section 2.09 of this bylaw. Notices 2.09. All meeting (Annual, Regular, and Special Meetings) notices must be in writing. The written notices must be posted and must be readily accessible by the general public at all times for at least 72 hours before the scheduled time of the meeting. The written notice shall include agenda items, day, time, and the location of the meeting. The written notice shall use plain, concise English. Quorum 2.10. A majority of the number of directors then in the office shall constitute a quorum for the transaction of business at any meeting of the Board of Directors. Directors present by proxy may not be counted toward a quorum. The directors present at a duly called or held meeting at which a quorum is present may continue the meeting even if enough directors leave the meeting so that less than a quorum remains. However, no action may be approved without the vote of at least a majority of the number of directors required to constitute a quorum. If less than a quorum is present at any meeting, a majority of the directors present may adjourn the meeting at any time without further notice. Duties of Directors 2.11. Directors shall exercise ordinary business judgments in managing the affairs of the Corporation. Directors shall act as fiduciaries with respect to the interests of the members. In acting in their official capacity as directors of this corporation, directors shall act in good faith and take actions they reasonably believe to be in not take any action that they should reasonably believe would be opposed to the Corporation’s best interests or would be unlawful. A director shall not be liable if, in the exercise of ordinary care, the director acts in good faith relying on written financial and legal statements provided by an account or attorney retained by the Corporation. Read Foundation Bylaws (Adopted on 4/13/2019) Page 118 Actions of Board of Directors 2.12. The Board of Directors shall try to act by consensus. The act of a majority of the Directors present at a meeting at which a quorum is present shall be the act of the Board unless the act of a greater number is required by law or these bylaws. If a quorum is present but thereafter a sufficient number of Directors leave such meeting so that a quorum no longer present, then any action taken by the remaining Directors shall not be the act of the Board. Proxies 2.13. Board of Directors may not issue a proxy or may not be represented by a proxy. Compensation 2.14. Directors shall not receive salaries for their services. The Board of Directors may adopt a resolution providing for a reimbursement payment according to the state law to the Directors for their expenses of attendance, if any, for attendance at each meeting of the Board of Directors. Removal of Directors 2.15. The Board of Directors or members may vote to remove a director at any time, only for good cause. Good cause for removal of a director shall include the unexcused failure to attend four consecutive meetings of the Board of Directors. A meeting to consider the removal of a director may be called and noticed following the procedures provided in the bylaws. The notice of the meeting shall state the issue of possible removal of the director that will be on the agenda the notice shall state the possible cause for removal. The director shall have the right to be represented by an attorney at and before the meeting. At the meeting, the Corporation shall consider possible arrangements for resolving the problems that are I the mutual interest of the Corporation and the director. A director may be removed by the affirmative vote of fifty one (51) percent of the Board of Directors. ARTICLE 3 OFFICERS Officer Positions The officers of the Corporation shall be a president, vice president, a secretary, a treasurer. The Board of Directors may create additional officer positions, define the authority and duties of each such position, and elect or appoint persons to fill the positions. Any two or more offices may by the same person, except the offices of president and secretary. Election and Term of Office 3.02 The officers of the Corporation shall be elected annually by the Board of Directors at the regular annual meeting of the Board of Directors. If the election of officers is not held at this meeting, the election shall be held as soon thereafter as conveniently as possible. Each officer shall hold office until a successor is duly selected and qualified. An officer may be elected to succeed himself or herself in the same office. Removal 3.03 Any officer elected or appointed by the Board of Directors may be removed by the Board of Directors with or without good cause. The removal of an officer shall be without prejudice to the contract rights, if any, of the officer. Vacancies 3.04. A vacancy in any office may be filled by the Board of Directors for the unexpired portion of the officer’s term. Read Foundation Bylaws (Adopted on 4/13/2019) Page 119 President 3.05. The president shall be the chief executive officer of the Corporation. The president shall supervise and control all of the business and affairs of the Corporation. The president shall preside at all meetings of the members and of the Board of Directors. The president may execute any deeds, mortgages, bonds, contracts, or other instruments that the Board of Directors has authorized to be executed. However, the president may not execute instruments on behalf of the Corporation if this power is expressly delegated to another officer or agent of the Corporation by the Board of Directors, the bylaws, or statute. The president shall perform other duties prescribed by the Board of Directors and all duties incident to the office of president. Vice President 3.06. When the president is absent, is unable to act, or refuses to act, a vice president shall perform the duties of the president. When a vice president acts in place of the president, the vice president shall have all the powers of and be subject to all the restrictions upon the president. If there is more than one vice president, the vice presidents shall act in place of the president in the order of the votes received when elected. A vice president shall perform other duties as assigned by the president or board of directors. Treasurer 3.07. The treasurer shall: (a) Have charge and custody of and be responsible for all funds and securities of the Corporation. (b) Receive and give receipts for moneys due and payable to Corporation from any source. (c) Deposit all moneys in the name of Corporation in banks, trust companies, or other depositories as provided in the bylaws or as directed by the Board of Directors or president. (d) Write checks and disburse funds to discharge obligations of the Corporation. (e) Maintain the financial books and record of the Corporation. (f) Prepare financial reports at least annually. (g) Perform other duties as assigned by the president or by the Board of Directors. (h) If required by the Board of Directors, give a bond for the faithful discharge of his or her duties in a sum and with a surety as determined by the Board of Directors. (i) Perform all of the duties incident to the office of treasurer. Secretary 3.08 The secretary shall: (a) Give all notices as provided in the bylaws or as required by law. (b) Take minutes of the meetings of the members and the Board of Directors and keep the minutes as part of the corporate records. (c) Maintain custody of the corporate records and of the seal of the Corporation. (d) Affix the seal of the Corporation to all documents as authorized. (e) Keep a register of the mailing address of each [if corporation has members, add: member], director, officer, and employee of the Corporation. (f) Perform duties as assigned by the president or by the Board of Directors. (g) Perform all duties incident to the office of secretary. ARTICLE 4 COMMITTEES Establishment of Committees 4.01. The Board of Directors may adopt a resolution establishing one or more committees delegating specified authority to a committee, and appointing or removing members of a committee. A committee shall include two or more directors and may include persons who are not directors. If the Board of Directors delegates any of its authority to a committee, the majority of the committee shall consist of directors. Read Foundation Bylaws (Adopted on 4/13/2019) Page 120 The Board of Directors may establish qualifications for membership on a committee. The Board of Directors may delegate to the president its power to appoint and remove members of a committee that has not been delegated any authority to it shall not relieve the Board of Directors, or any individual director, of any responsibility imposed by the Bylaws or otherwise imposed by law. No committee shall have the authority of the Board of Directors to: (a) Amend the articles of incorporation. (b) Adopt a plan of merger or a plan of consolidation with another corporation. (c) Authorize the sale, lease, exchange, or mortgage, of all or substantially all of the property and assets of the Corporation. (d) Authorize the voluntary dissolution of the Corporation. (e) Revoke proceedings for the voluntary dissolution of the Corporation. (f) Adopt a plan for the distribution of the assets of the Corporation. (g) Amend, alter, or repeal the bylaws. (h) Eject, appoint, or remove a member of a committee or a director or officer of the Corporation. (i) Approve any transaction to which the Corporation is a party and that involves a potential conflict of interests as defined in paragraph 5.04, below. (j) Take any action outside the scope of authority delegated to it by the Board of Directors. Authorization of Specific Committee 4.02. There shall be the following committees: Academic and Finance Committees. The Board of Directors shall define the activities and scope of authority of each committee by resolution. Term of Office 4.03. Each member of a committee shall continue to serve on the committee until the next annual meeting of the Directors of the Corporation and until a successor is appointed. However, the term of a committee member may terminate earlier if the committee is terminated or if the member dies, ceases to qualify, resigns, or, is removed as a member. A vacancy on a committee may be filled by an appointment made in the same manner as an original appointment. A person appointed to fill a vacancy on a committee shall serve for the unexpired portion of the terminated committee member’s term. Chair and Vice-Chair 4.04. One member of each committee shall be designated as the chair of the committee and the other member of each committee shall be appointed by the president of the Corporation. The chair and vicechair shall be appointed by the president of the Corporation. The chair shall call and preside at all meetings of the committee. When the chair is absent, is unable to act, or refuses to act, the vice-chair shall perform the duties of the chair. When a vice-chair acts in place of the chair, the vice-chair shall have all the powers of and be subject to all the restrictions upon the chair. Notice of Meetings 4.05. Written or printed notice of a committee meeting shall be delivered to each member of a committee not less than, seven nor more than 30 days before the date of the meeting. The notice shall state the place, day, and time of the meeting, and the purpose or purposes for which the meeting is called. 4.06. A majority of the number of persons shall constitute a quorum of a committee for the transaction of business at any meeting of the committee. The directors present at a duly called or held meeting at which a quorum is present may continue the meeting even if enough directors leave the meeting so that less than a quorum remains. However, no action may be approved without the vote of at least a majority of the number of directors required to constitute a quorum. If less than a quorum is present at any meeting, a majority of the directors present may adjourn the meeting at any time without further notice. Actions of Committees 4.07. Committees shall try to take action by consensus. However, the vote of a majority of committee members present and voting at a meeting at which a quorum is present shall be sufficient to constitute the act of the committee unless the act of a greater number is required by law or the bylaws. A Read Foundation Bylaws (Adopted on 4/13/2019) Page 121 committee member who is present at a meeting and abstains from a vote is not considered to be present and voting for the purpose of determining the act of the committee. Proxies 4.08. A committee member may not vote by a proxy. Compensation 4.09. Committee members shall not receive salaries for their services. The Board of Directors may adopt a resolution providing for the payment to committee members of a fixed sum and expenses of attendance, if any, for attendance at each meeting of the committee. A committee member may serve the Corporation in any other capacity and receive compensation for those services. Any compensation that the Corporation pays to a committee member shall be commensurate with the services performed and shall be reasonable in amount. However, the Board of Directors is highly encouraged to provide services on a voluntary basis and request no compensation. Rules 4.10. Each committee may adopt rules for its own operation not inconsistent with the bylaws or with rules adopted by the Board of Directors. ARTICLE 5 TRANSACTIONS OF THE CORPORATION Contracts 5.01. The Board of Directors may authorize any officer or agent of the Corporation to enter into a contract or execute and deliver any instrument in the name of and on behalf of the Corporation. This authority may be limited to a specific contract or instrument or it may extend to any number and type of possible contracts and instruments. Deposit 5.02. All funds of the Corporation shall be deposited to the credit of the Corporation in banks, trust companies or other depositaries that the Board of Directors selects. Gifts 5.03. The Board of Directors may accept on behalf of the Corporation any contribution, gift, bequest, or devise for the general purposes or for any special purpose of the Corporation. The Board of Directors may make gifts and give charitable contributions that are not prohibited by the bylaws, the articles of incorporation, state law, and any requirements for maintaining the Corporation’s federal and state tax status. Potential Conflicts of Interest 5.04. The corporation shall not make any loan to a director or officer of the corporation. The Corporation shall not borrow money from or otherwise transacts business with a member, director, officer, or, committee member of the Corporation unless the transaction is described fully in a legally binding instrument and is in the best interests of the Corporation. The Corporation shall not borrow money from or otherwise transact business with a director, officer, or committee member of the Corporation without full disclosure of all relevant facts and without the approval of the Board of Directors, not including the vote of any person having a personal interest in the transaction. Annual Statements Regarding Conflict of Interest Policy 5.05. Each director, principal officer and member of a committee with governing board delegated powers shall annually sign a statement which affirms such person: (a) Has received a copy of the conflicts of interest policy, Read Foundation Bylaws (Adopted on 4/13/2019) Page 122 (b) (c) (d) Has read and understands the policy, Has agreed to comply with the policy, and Understands the Organization is charitable and in order to maintain its federal tax exemption it must engage primarily in activities which accomplish one or more of its tax-exempt purposes. Records of Proceedings 5.06. The minutes of the governing board and all committees with board delegated powers shall contain: (a) The names of the persons who disclosed or otherwise were found to have a financial interest in connection with an actual or possible conflict of interest, the nature of the financial interest, any action taken to determine whether a conflict of interest was present, and the governing board’s or committee’s decision as to whether a conflict of interest in fact existed. (b) The names of the persons who were present for discussions and votes relating to the transaction or arrangement, the content of the discussion, including any alternatives to the proposed transaction or arrangement, and a record of any votes taken in connection with the proceedings. Violations of the Conflicts of Interest Policy 5.07. If the governing board or committee has reasonable cause to believe a member has failed to disclose actual or possible conflicts of interest, it shall inform the member of the basis for such belief and afford the member an opportunity to explain the alleged failure to disclose. If, after hearing the member’s response and after making further investigation as warranted by the circumstances, the governing board or committee determines the member has failed to disclose an actual or possible conflict of interest, it shall take appropriate disciplinary and corrective action. Prohibited Acts 5.08. As long as the Corporation is in existence, and except with the prior approval of the Board of Directors, no director, officer or committee member shall: (a) Do any act in violation of the bylaws or a binding obligation of the Corporation. (b) Do any act with the intention of harming the Corporation or any of its operations. (c) Do any act that would make it impossible or unnecessarily difficult to carry on the intended or ordinary business of the Corporation. (d) Receive an improper benefit from the operation of the Corporation. (e) Use the assets of the Corporation, directly or indirectly, for any purpose other than carrying on the business of the Corporation. (f) Wrongfully transfer or dispose of Corporation property, including intangible property such as good will. (g) Use the name of the Corporation (or any substantially similar name) or any trademark or trade name adopted by the Corporation, except on behalf of the Corporation in the ordinary course of the Corporation’s business. (h) Disclose any of the Corporation business practices, trade secrets, or any other information not generally known to the business community to any person not authorized to receive it. ARTICLE 6 BOOKS AND RECORDS Required Books and Records 6.01. The Corporation shall keep complete books and records of account. The Corporation’s books and records shall include: (a) A file-endorsed copy of all documents filed with Tennessee Secretary of State relating to the Corporation, including, but not limited to, the articles of Corporation, and any articles of Read Foundation Bylaws (Adopted on 4/13/2019) Page 123 amendment, restated articles, articles of merger, articles of consolidation, and statement of change of registered office or registered agent. (b) A copy of the bylaws, and any amended versions or amendments to the bylaws. (c) Minutes of the proceedings of the Board of Directors, and committees having any of the authority of the Board of Directors. (d) A list of the names and addresses of the directors, officers and any committee members of the Corporation. (e) A financial statement showing the assets, liabilities and not worth of the Corporation at the end of the three most recent fiscal years. (f) A financial statement showing the income and expenses of the Corporation for the three most recent fiscal years. (g) All rulings, letters, and other documents relating to the Corporation’s federal, state, and local tax status. ARTICLE 7 FISCAL YEAR 7.01 The fiscal year of the Corporation shall begin on the first day of July and end on the last day in June in each year. ARTICLE 8 INDEMNIFICATION When Indemnification is Required, Permitted, and Prohibited 8.01. (a) The Corporation shall indemnify a director, officer, committee member, employee or agent of the Corporation who was, is or may be named defendant or respondent in any proceeding as a result of his or her actions omissions within the scope of his or her official capacity in the Corporation. For the purposes of this article, an agent includes one who is or was serving at the request of the Corporation as a director, officer, partner, venturer, proprietor, trustee, partnership, joint venture, sole proprietorship, trust, employee benefit plan, or other enterprise. However, the Corporation shall indemnify a person only if he or she acted in good faith and reasonably believed that the conduct was in the Corporation’s best interests. In a case of criminal proceeding, the person may be indemnified only if he or she had no reasonable cause to believe that the conduct was unlawful. The Corporation shall not indemnify a person who is found liable to the Corporation or is found to be liable to another on the basis of improperly receiving a personal benefit. A person is conclusively considered to have been found liable in relation to any claim, issue, or matter if the person has been adjudged liable by a court of competent jurisdiction and all appeals have been exhausted. (b) The termination of a proceeding by judgment, order, settlement, conviction, or on a plea of polo contendere or its equivalent does not necessarily preclude indemnification by the Corporation. (c) The Corporation shall pay or reimburse expenses incurred by a director, officer, committee member, employee, or agent of the Corporation in connection with the person’s appearance as a witness or other participation in a proceeding involving or affecting the Corporation when the person is not a named defendant or respondent in the proceeding. (d) In addition to the situations otherwise described in this paragraph, the Corporation may indemnify a director, officer, committee member, employee, or agent of the Corporation to the extent permitted by law. However, the Corporation shall not indemnify any person in any situation in which indemnification is prohibited by the terms of paragraph 8.01., above. Read Foundation Bylaws (Adopted on 4/13/2019) Page 124 (e) Before the final disposition of a proceeding, the Corporation may pay indemnification expenses permitted by the bylaws and authorized by the Corporation. However, the Corporation shall not pay indemnification expenses to a person before the final disposition of a proceeding. If the person is a named defendant or respondent in a proceeding brought by the Corporation; or the person is alleged to have improperly received a personal benefit or committed other willful or intentional misconduct. (f) If the Corporation may indemnify a person under the bylaws, the person may be indemnified against judgment, penalties, including excise and similar taxes, fines, settlements, and reasonable expenses (including attorney’s fees) actually incurred in connection with the proceeding. However, if the proceeding was brought by or on behalf of the Corporation, the indemnification is limited to a reasonable expenses actually incurred by the person in connection with the proceeding. Procedures Relating to Indemnification Payments 8.02. (a) Before the Corporation may pay any indemnification expenses (including attorney’s fees), and determine that expenses to be reimbursed are reasonable, except as provided in paragraph 8.02(c), below. The Corporation may make theses determinations and decisions by any one of the following procedures: (i) Majority vote of the quorum consisting of directors who, at the time of the vote, are not named defendants or respondents in the proceeding. (ii) If such a quorum cannot be obtained, by a majority vote of committee of the Board of Directors, designated to act in the matter by a majority vote of all directors, consisting solely of two or more who at the time of the vote are not named defendants or respondents in the proceeding. (iii) Determination by special legal counsel selected by the Board of Directors by votes as provided in paragraph 10.02(a)(I) or 10.02(a)(ii), or if such a quorum cannot be obtained and such a committee cannot be established, by a majority vote of all directors. (b) The Corporation shall authorize indemnification and determine that expenses to be reimbursed are reasonable in the same manner that it determines whether indemnification id permissible. If the determination that the facts then known to those making the determination would not preclude indemnification and authorization of payment shall be made in the same manner as a determination that indemnification is permissible under paragraph 8.02(a), above. The person’s written affirmation shall state that he or she has met the standard of conduct necessary for indemnification under the bylaws, The written undertaken shall provide for repayment of the month paid or reimbursed by the Corporation if it is ultimately determined that the person has not met the requirements for indemnification. The undertaken shall be an unlimited general obligation of the person, but it need not be secured and it may be accepted without reference to financial ability to make repayment. ARTICLE 9 NOTICES Notice by Mail, Telegram, email 9.01. Any notice required or permitted by the bylaws to be given to a director, officer or member of a committee of the Corporation may be given by mail, telegram or email. If mailed a notice shall be deemed to be delivered when deposited in the United States mail addressed to the person at his or her address as it appears on the records of the Corporation, with postage prepaid. If given by telegram, a notice shall be deemed to be delivered when accepted by the Telegram Company and addressed to the person at his or her address as it appears on the records of the Corporation. A person may change his or her address by giving written notice to the secretary of the Corporation. Read Foundation Bylaws (Adopted on 4/13/2019) Page 125 Signed Waiver of Notice 9.02. Whenever any notice is required to be given under the provisions of the act or under the provisions of the articles of incorporation or the bylaws, a waiver in writing signed by a person entitled to receive a notice shall be deemed equivalent to the giving of the notice. A waiver of the notice shall be effective whether signed before or after the time stated in the notice being waived. Waiver of Notice by Attendance 9.03. The attendance of a person at a meeting shall constitute a waiver of notice of the meeting unless the person attends for the express purpose of objecting to the transaction or any business because the meeting is not lawfully called or convened. ARTICLE 10 SPECIAL PROCEDURES CONCERNING MEETINGS Meeting by Telephone or Internet 10.01. A. Subject to the provisions required or permitted by the Tennessee Open Meetings Act or notice of meetings, unless otherwise restricted by the articles of incorporation or bylaws, members of the board of directors of the corporation, or members of any committee designated by such board may participate in and hold a meeting of such members, board, or committee by means of: (1) conference telephone or similar communications equipment by which all persons participating in the meeting can hear each other; or (2) another suitable electronic communications system, including videoconferencing technology or the Internet, only if: (a) each member entitled to participate in the meeting consents to the meeting being held by means of that system; and (b) the system provides access to the meeting in a manner or using a method by which each member participating in the meeting can communicate concurrently with each other participant. B. Participation in a meeting pursuant to this Article shall constitute presence in person at such meeting, except where a person participates in the meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened. ARTICLE 11 AMENDMENTS TO BYLAWS 11.01 The bylaws may be altered, amended, or repealed, and new bylaws may be adopted a majority vote by the Board of Directors. The notice of any meeting at which the bylaws are altered, amended, or repealed, or at which new bylaws are adopted shall include the text of the proposed bylaw provisions as well as the text of any existing provisions proposed to be altered, amended, or repealed. Alternatively, the notice may include a fair summary of those provisions. Read Foundation Bylaws (Adopted on 4/13/2019) Page 126 ARTICLE 12 MISCELLANEOUS PROVISIONS AND CLAUSES Dissolution Clause 12.01. Upon the dissolution of this organization, assets shall be distributed for one or more exempt purposes within the meaning of section 501(c)(3) of the Internal Revenue Code, or corresponding section of any future federal code, or shall be distributed to the federal government, or to a state or local government, for a public purposes. Legal Authorities Governing Constructions of Bylaws 12.02. The bylaws shall be construed in accordance with the laws of the State of Tennessee. All references in the bylaws to statutes, regulations, or other sources of legal authority shall refer to the authorities cited, or their successors, as they may be amended from time to time. Legal Construction 12.03. If any bylaw provision is held to be invalid, illegal, or unenforceable in any respect, the invalidity, illegality, or unenforceability shall not any other provision and the bylaws shall be construed as if the invalid, illegal, or unenforceable provision had not been included in the bylaws. Headings 12.04. The headings used in the bylaws are used for inconvenience and shall not be considered in contouring the terms of the bylaws. Gender 12.05. Wherever the context requires, all words in the bylaws in the male gender shall be deemed to include female or neuter gender, all singular words shall include the plural, and all plural words shall include the singular. Seal 12.06 The Board of Directors may provide for a corporate seal such a seal would consist of two concentric circles containing the words Read Foundation, “Tennessee,” in on encircle and the word “Incorporated” together with the date of incorporation of the Corporation in the other circle. Power of Attorney 12.07. A person may execute any instrument related to the Corporation by means of a power of attorney if an original executed copy of the Corporation to be kept with the Corporation records. Parties Bound 12.08. The bylaws shall be binding upon and inure to the benefits of the directors, officers, committee members, employees, and agents of the Corporation and their respective heirs, executors, administrators, legal representatives, successors, and assigns except as otherwise provided in the bylaws. ARTICLE 13 THE NON-DISCRIMINATORY STATEMENT 13.01. It is the policy of Read Foundation not to discriminate on the basis of age, color, handicap or disability, ancestry, national origin, marital status, race, religion, gender, veteran status, or political affiliation, in its educational programs and/or activities. Read Foundation Bylaws (Adopted on 4/13/2019) Page 127 CERTIFICATE OF APPROVAL I certify that I am the duly elected and acting president of Read Foundation and that the foregoing Bylaws constitute the Bylaws of the Corporation. These Bylaws were duly adopted at a meeting of the Board of Directors held on ____________________, 20___. ___________________________________________ _____ / _____ /________ [Signature] Date (mm/dd/yyyy) ___________________________________________ [Name] Read Foundation Bylaws (Adopted on 4/13/2019) Page 128 Board of Directors Organizational Chart Board President Dr. Cem Akkus Board Member Board Member Board Member Secretary Dr. David Akdemir Dr. Richard Potts Veda V.T. Cherry Bayram Demirbuga Vice President and Treasurer Patty Farmer Page 129 Attachment G: School Organizational Chart Special Education Coordinator! Teacher Business Manager Academic Coordinator Dean of Students ESL CoordinatorfTeacher Teachers and Support Staff Page 130 Read Foundation Financial Statements June 30, 2018 Page 131 READ FOUNDATION Title Page June 30, 2018 ANNUAL FINANCIAL REPORT TENNESSEE PUBLIC CHARTER SCHOOLS OPERATED BY the READ FOUNDATION MEMPHIS SCHOOL OF EXCELLENCE MEMPHIS SCHOOL OF EXCELLENCE ELEMENTARY SCHOOL Page 132 READ FOUNDATION Table of Contents June 30, 2018 Page Governance Officials .................................................................................................................................................. 4 Independent Auditor’s Report .................................................................................................................................... 5 Management’s Discussion and Analysis .................................................................................................................... 7 Basic Combined Financial Statements Government-Wide Financial Statements: Combined Statement of Net Position ........................................................................................................... 11 Combined Statement of Activities ................................................................................................................. 12 Combined Fund-Financial Statements: Combined Balance Sheet - Governmental Funds ........................................................................................ 13 Reconciliation of the Combined Balance Sheet to the Combined Statement of Net Position – Governmental Activities .............................................................................. 14 Combined Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds ............................................................................................................................... 15 Reconciliation of the Combined Statement of Revenues, Expenditures, and Changes in Fund Balance of Governmental Funds to the Combined Statement of Activities .................................... 16 Notes to the Combined Financial Statements ................................................................................................... 17 Required Supplementary Information Schedule of Proportionate Share of the Net Pension Liability (Asset) – Teacher Legacy Pension Plan of the TCRS ................................................................................................. 36 Schedule of Contributions – Teacher Legacy Pension Plan of the TCRS......................................................... 37 Schedule of Changes in Net Pension Liability (Asset) and Related Ratios Based on Participation in the Public Employee Pension Plan of the TCRS – Non Teacher ........................................ 38 Schedule of Contributions Based Upon Participation in the Public Employee Pension Plan of the TCRS – Non Teacher ................................................................................................... 40 Schedule of Proportionate Share of the Net Pension Liability (Asset) Teacher Retirement Plan of the TCRS ......................................................................................................... 41 Schedule of Contributions – Teacher Retirement Plan of the TCRS ................................................................. 42 Other Supplementary Information Combining Schedule of Assets, Liabilities, and Fund Balances – Governmental Funds .................................. 44 2 Page 133 READ FOUNDATION Table of Contents June 30, 2018 Page Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds .................................................................................................................................... 45 Schedule of Combined Expenditures of Federal Awards and State Financial Assistance................................ 46 Non-Financial Information Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................................... 48 Schedule of Findings and Responses ............................................................................................................... 50 Schedule of Prior Year Findings and Responses .............................................................................................. 51 3 Page 134 READ FOUNDATION Governance Officials June 30, 2018 BOARD OF DIRECTORS Dr. Cem Akkus, President Patty Farmer, Treasurer Bayram Demirbuga, Secretary Dr. Richard Potts ADMINISTRATIVE OFFICIALS Muhammet Turkay, Executive Director 4 Page 135 INDEPENDENT AUDITOR’S REPORT To the Board of Directors Read Foundation Memphis, Tennessee Report on the Combined Financial Statements We have audited the accompanying combined financial statements of the governmental activities and the major fund of the Read Foundation as of and for the year ended June 30, 2018, and the related notes to the combined financial statements, which collectively comprise the Read Foundation’s basic combined financial statements as listed in the table of contents. Management’s Responsibility for the Combined Financial Statements Management is responsible for the preparation and fair presentation of these combined financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of combined financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these combined financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the combined financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the combined financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the combined financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the combined financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the combined financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the combined financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and the major fund of the Read Foundation as of June 30, 2018, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. CANNON WRIGHT BLOUNT PLLC PHONE 901.685.7500 756 RIDGE LAKE BLVD FAX 901.685.7569 MEMPHIS TN 38120 WWW.CANNONWRIGHTBLOUNT.COM Page 136 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the required supplementary information, as listed in the table of contents, be presented to supplement the basic combined financial statements. Such information, although not a part of the basic combined financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic combined financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the management’s discussion and analysis and the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic combined financial statements, and other knowledge we obtained during our audit of the basic combined financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the combined financial statements that collectively comprise the Read Foundation’s basic combined financial statements. The governance officials schedule, the combining financial statements of the governmental funds, and the schedule of combined expenditures of federal awards and state financial assistance are presented for purposes of additional analysis and are not a required part of the basic combined financial statements. The combining schedules of the governmental funds and the schedule of combined expenditures of federal awards and state financial assistance are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic combined financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic combined financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic combined financial statements or to the basic combined financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining financial statements of the governmental funds and the schedule of combined expenditures of federal awards and state financial assistance are fairly stated, in all material respects, in relation to the basic combined financial statements as a whole. The governance officials schedule has not been subjected to the auditing procedures applied in the audit of the basic combined financial statements and, accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report, dated November 16, 2018, on our consideration of the Read Foundation’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is soley to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Read Foundation’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Read Foundation’s internal control over financial reporting and compliance. Memphis, Tennessee November 16, 2018 6 Page 137 READ FOUNDATION Management’s Discussion and Analysis June 30, 2018 The following Management’s Discussion and Analysis (MD&A) of the Read Foundation’s (“the Foundation”) activities and financial performance provides the reader with an introduction and overview to the financial statements of the Foundation for the year ended June 30, 2018. This information should be considered within the context of the accompanying financial statements and note disclosures. OVERVIEW OF THE FINANCIAL STATEMENTS Financial Highlights  The assets of the Read Foundation exceeded its liabilities at the end of the fiscal year by $3,854,089 (net position).  The Read Foundation’s total net position increased by $735,376.  The Read Foundation’s total expenses increased by $1,120,588, primarily due to increase in salaries and for the addition of several new teachers and office expenses. This financial report consists of a series of financial statements, notes to those statements, and required supplementary information. The statements are organized so that the reader can understand the Read Foundation as a whole and then proceed to a detailed look at specific financial activities of the Read Foundation. Reporting the Read Foundation as a Whole The Statement of Net Position and Statement of Activities: In general, users of these financial statements want to know if the Foundation is better off or worse off as a result of the year’s activities. The Statement of Net Position and Statement of Activities report information about the Foundation as a whole and about the Foundation’s activities in a manner that helps to answer that question. These statements include all assets and liabilities using the accrual basis of accounting. Under the accrual basis, all of the current year’s revenue and expenses are taken into consideration regardless of when cash is received or paid. The Statement of Net Position reports the Foundation’s net position (total assets less total liabilities). Private sector entities would report retained earnings. The Foundation’s net position balance at year-end represents available resources for future growth. The Statement of Activities reports the change in net position as a result of activity during the year. Private sector entities have a similar report titled the statement of operations, which reports net income. It provides the user a tool to assist in determining the direction of the Foundation’s financial health during the year. Users will want to consider non-financial factors as well as the financial data in arriving at a conclusion regarding the overall health of the Foundation. Reporting the Read Foundation’s Funds Fund Financial Statements: The Read Foundation’s governmental fund financial statements, the Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balances, provide detailed information about the Foundation’s most significant funds, not the Foundation as a whole. Funds are established by the Foundation to help manage money for particular purposes and compliance with various grant provisions. The Read Foundation funds are categorized as “governmental funds.” Governmental funds focus on how money flows into and out of the funds and the balances left at year-end that are available for spending in future periods. Fund financial statements are reported using an accounting method called “modified accrual” accounting, which measures cash and other financial assets that can readily be converted to cash. This basis of accounting is different from the accrual basis used in the government – wide financial statements to report on the Foundation as a whole. The modified accrual basis of accounting treats capital assets purchased and debt payments as expenses and new debt as income. There is no depreciation expense since the capital assets are expensed when acquired. Capital assets acquired during the current year were $524,331. The relationship between governmental activities, as reported in the Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balances is reconciled following the basic financial statements. 7 Page 138 READ FOUNDATION Management’s Discussion and Analysis June 30, 2018 FINANCIAL ANALYSIS A summary of the Read Foundation’s financial position for its governmental activities is as follows: 2018 Assets and deferred outflows of resources $ Increase (Decrease) 2017 5,941,523 $ 5,334,692 $ 606,831 Liabilities and deferred inflows of resources 2,087,434 2,215,579 (128,145) Net position Invested in capital assets Unrestricted 2,394,355 1,459,734 2,491,801 626,912 (97,446) 832,822 Total net position $ 3,854,089 $ 3,118,713 $ 735,376 A summary of the Read Foundation’s operations from governmental activities is as follows: 2018 Revenues $ 6,105,225 Expenses Change in net position $ 4,642,451 5,369,849 $ 735,376 Increase (Decrease) 2017 $ 1,462,774 4,249,261 $ 393,190 1,120,588 $ 342,186 Revenues Funding for the Read Foundation comes primarily through the per-pupil allocation from the Shelby County Schools’ Board of Education. An analysis of the changes between the current year and prior year governmental activity revenues are as follows: 2018 Shelby County Schools Operating and capital grants and contributions Other charges for services Total $ 5,222,408 $ 813,887 68,930 $ 6,105,225 Increase (Decrease) 2017 4,076,530 $ 462,780 103,141 $ 4,642,451 1,145,878 351,107 (34,211) $ 1,462,774 8 Page 139 READ FOUNDATION Management’s Discussion and Analysis June 30, 2018 The variance for the Foundation’s per-pupil allocation is due to the increase in the Foundation’s enrollment, from an average of 475 students in the prior year to an average of 600 students in the current year plus an increase in the per-pupil allocation from $8,506 to $8,707 per-pupil. Federal awards increased due to the Foundation being awarded a Planning and Implementation grant for Memphis School of Excellence Elementary. The Capital Outlay funds are based on student enrollment. Because of the increase in student enrollment in the current year, the Foundation received more capital outlay funding than in the previous year. The Foundation also received $185,000 from a new capital outlay grant for the purpose of assisting public charter schools in acquiring and improving property to educate students. Expenses An analysis of the changes between the current year and prior year governmental activities funds expenses are as follows: Salaries, wages, and benefits Instructional General and administrative Other instructional General and administrative Debt service Total Increase (Decrease) 2018 2017 $ 2,499,440 724,507 1,717,394 346,158 82,350 2,141,182 301,136 1,406,913 356,515 43,515 $ $ 5,369,849 4,249,261 $ $ 358,258 423,371 310,481 (10,357) 38,835 1,120,588 The increase in salaries, wages, and benefits and other instructional expenses is due to more teachers and other instructional staff employed during the current year because of the increase in enrollment. ECONOMIC FACTORS Significant economic factors affecting the Read Foundation are as follows:  The amount of State funding received per student for the year. This amount per student can fluctuate from year to year based on total funds available to the State and the number of students enrolled during the school year.  The continued funding of other programs and grants.  Inflationary pressure on utility rates, supplies, insurance, and other costs.  Local labor supply and demand, which can affect salary and wage rates. REQUEST FOR INFORMATION This financial report is designed to provide a general overview of the Foundation’s finances for all those with an interest in the Foundation. Questions concerning any of the information provided in this report may be addressed to the office of: Read Foundation 4450 South Mendenhall Road, Suite 1 Memphis, Tennessee 38141 Telephone (901) 367-7814 9 Page 140 Basic Combined Financial Statements Page 141 READ FOUNDATION Combined Statement of Net Position June 30, 2018 Governmental Activities Assets Cash Grants receivable Prepaid expenses Net pension asset Non-depreciable capital assets Depreciable capital assets, net of accumulated depreciation $ Total assets 5,507,576 Deferred outflows of resources - pensions 433,947 Total assets and deferred outflows of resources 5,941,523 Liabilities Accounts payable Accrued liabilities Notes payable - due in one year Notes payable - due in more than one year 17,929 73,344 89,754 1,697,215 Total liabilities 1,878,242 Deferred inflows of resources - pensions 209,192 Total liabilities and deferred inflows of resources 2,087,434 Net position Net investment in capital assets Unrestricted Total net position 1,108,748 34,113 105,785 77,606 779,900 3,401,424 2,394,355 1,459,734 $ 3,854,089 See independent auditor’s report and notes to the combined financial statements 11 Page 142 READ FOUNDATION Combined Statement of Activities For the Year Ended June 30, 2018 Functions Total Instructional and Student Services $ 3,223,947 258,644 326,616 1,166,830 110,940 14,184 96,458 8,411 81,205 264 82,350 $ 2,499,440 313,551 1,120,157 105,349 6,512 96,038 75,523 264 - 5,369,849 4,216,834 1,070,665 82,350 Program revenues: Operating grants and contributions Capital grants and contributions Charges for services 365,887 448,000 68,930 365,887 448,000 68,930 - - Total program revenues 882,817 882,817 - - Governmental Activities Program expenses: Employee compensation Office Depreciation Occupancy Supplies Staff development Travel Advertising Other Student services Interest Total expenses Net program expenses General revenues: SCS per pupil allocations Change in net position Net position - beginning of year Net position - end of year General and Administrative Debt Service $ 724,507 258,644 13,065 46,673 5,591 7,672 420 8,411 5,682 - $ (4,487,032) $ (3,334,017) $ (1,070,665) $ 82,350 (82,350) 5,222,408 735,376 3,118,713 $ 3,854,089 See independent auditor’s report and notes to the combined financial statements 12 Page 143 READ FOUNDATION Combined Balance Sheet – Governmental Funds June 30, 2018 General Fund ASSETS Cash Grants receivable Prepaid expenses Total assets $ 1,108,748 34,113 105,785 $ 1,248,646 $ 17,929 73,344 LIABILITIES AND FUND BALANCE Liabilities Accounts payable Accrued liabilities Total liabilities 91,273 Fund balance Non-spendable Unassigned 105,785 1,051,588 Total fund balance Total liabilities and fund balance 1,157,373 $ 1,248,646 See independent auditor’s report and notes to the combined financial statements 13 Page 144 READ FOUNDATION Reconciliation of the Combined Balance Sheet to the Combined Statement of Net Position – Governmental Activities June 30, 2018 General Fund Total governmental fund balance $ 1,157,373 Amounts reported for governmental activities in the Statement of Net Position are different because: Net pension asset/liability is not carried on the General Fund Balance Sheet Long-term debt is not due and payable in the current period and, therefore, is not reported in the general fund 77,606 (1,786,969) Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 4,181,324 Deferred outflows/inflows related to pensions are not reported in the General Fund Balance Sheet 224,755 Net position of governmental activities $ 3,854,089 See independent auditor’s report and notes to the combined financial statements 14 Page 145 READ FOUNDATION Combined Statement of Revenues, Expenditures, and Changes in Fund Balance – Governmental Fund For the Year Ended June 30, 2018 General Fund Revenues: Shelby County Schools Operating grants and contributions Capital grants and contributions Charges for services $ Total revenues 5,222,408 365,887 448,000 68,930 6,105,225 Expenditures: Current: Salaries, wages and benefits: Instructional General and administration Instructional General and administration Capital outlay: Current expenditures Debt service: Principal payments on notes payable Interest 2,550,028 779,929 1,403,843 333,093 524,331 218,258 82,350 Total expenditures 5,891,832 Revenues over (under) expenditures 213,393 Other financial sources Issuance of notes payable 513,419 Change in fund balance 726,812 Fund balance - beginning of year 430,561 Fund balance - end of year $ 1,157,373 See independent auditor’s report and notes to the combined financial statements 15 Page 146 READ FOUNDATION Reconciliation of the Combined Statement of Revenues, Expenditures, and Changes in Fund Balance of Governmental Funds to the Combined Statement of Activities For the Year Ended June 30, 2018 General Fund Net change in fund balance - governmental funds $ 726,812 Amounts reported for governmental activities in the Statement of Activities are different because: GASB 68 negative pension expense is not reported in the Statement of Revenues, Expenditures, and Changes in Fund Balance 106,010 Repayment of the principal of long-term debt consumes the current financial resources of governmental funds. These transactions do not have an effect on net position 218,258 Issuance of long-term debt provides the current financial resources to governmental funds. These transactions do not have an effect on net position (513,419) Capital outlays, reported as expenditures in governmental funds, are shown as capital assets on the Statement of Net Position 524,331 Depreciation expense on capital assets is included only in the governmental activities in the Statement of Activities Change in net position of governmental activities (326,616) $ 735,376 See independent auditor’s report and notes to the combined financial statements 16 Page 147 READ FOUNDATION Notes to the Financial Statements June 30, 2018 Note 1 - Summary of Significant Accounting Policies Reporting Entity The Read Foundation was formed as a Tennessee non-profit corporation. The Read Foundation (the “Foundation”), is the sponsor of Memphis School of Excellence and Memphis School of Excellence Elementary School. Pursuant to the provisions of the Tennessee Public Charter Schools Act of 2002 (the Act), T.C.A. Section 49-12-101, et seq., Memphis School of Excellence has been approved as a public charter school. Pursuant to the Act, public charter schools are part of the state’s public education program offering an alternative means within the public school system for accomplishing necessary outcomes of education. Memphis School of Excellence, through the Read Foundation, as sponsor, entered into a Charter School Agreement with the Board of Education of the Shelby County Schools to operate a charter school in Memphis, Tennessee, for the purpose of operating an alternative school to improve the learning of students with special needs as specified in the Federal Individuals with Disabilities Education Act. The School began classes in September 2010, with grades sixth through ninth. The initial Charter School Agreement expires in October 1, 2020, and is subject to renewal at the discretion of the Board of Education for the Shelby County Schools. Memphis School of Excellence Elementary School was formed pursuant to the provisions of the Tennessee Public Charter Schools Act of 2002 (the Act), T.C.A. Section 49-12-101, et seq. Memphis School of Excellence Elementary School, through the Read Foundation, as sponsor, entered into a Charter School Agreement with the Board of Education of the Shelby County Schools to operate a charter school in Memphis, Tennessee. Memphis School of Excellence Elementary School began classes in August 2017, with kindergarten through second grade. The initial Charter School Agreement expires on June 30, 2026, and is subject to renewal at the discretion of the Board of Education for the Shelby County Schools. Measurement focus, basis of accounting and presentation The Foundation, in accordance with the applicable Governmental Accounting Standards Board (GASB) statement, are considered a special-purpose governmental entity and is not a component unit of another governmental entity. Therefore, the financial statements have been prepared in the same manner as generalpurpose governments. The Foundation’s basic financial statements include both government-wide and fund financial statements. The combined government-wide financial statements (i.e., the combined statements of net position and the combined statements of activities) report information on all the non-fiduciary activities of the primary government. Governmental activities normally are supported by taxes and inter-governmental revenues and are paid to the Foundation through the Board of Education of the Shelby County Schools. The combined government-wide financial statements of the Foundation have been prepared on the accrual basis of accounting. Under the accrual basis, revenues are recognized when earned and expenses are recognized when incurred. The combined governmental fund financial statements are presented on the modified accrual basis of accounting. Revenues under the modified accrual basis are recognized when measurable and available. Revenues are considered available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Foundation considers revenues available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when the related liability is incurred, as under accrual accounting. Combined Government-wide Financial Statements In the combined government-wide statement of net position, activities are reported on a full accrual, economic resource basis, which recognizes all long-term assets and receivables as well as long-term debt and obligations. The combined statement of net position presents the financial condition of the Foundation at year-end. GASB regulations require the classification of net position into three components: invested in capital assets, net of related debt; restricted; and unrestricted. These classifications are defined as follows: Net investment in capital assets – This component of net position consists of capital assets, including restricted capital assets, net of accumulated depreciation and reduced by outstanding balances (if any) of bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction or improvement of those assets. 17 Page 148 READ FOUNDATION Notes to the Financial Statements June 30, 2018 If there are significant unspent related debt proceeds at year end, the portion of the debt attributable to the unspent proceeds is not included in the calculation of invested in capital assets, net of related debt. Rather, that portion of the debt is included in the same net position component as the unspent proceeds. Restricted – This component of net position consists of constraints placed on net position use through external constraints imposed by creditors (such as through debt covenants), contributors or laws or regulations of other governments or constraints imposed by law through constitutional provisions or enabling legislation. Unrestricted – This component of net position consists of net position that do not meet the definition of restricted or invested in capital assets, net of related debt. When both restricted and unrestricted assets are available for use, it is the Foundation’s policy to utilize restricted assets first, then unrestricted assets as needed. The government-wide statement of activities demonstrates the degree to which the direct expenses of a given function or program is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to students for lunches, school supplies, after school care, athletic programs, and other services; 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment; and 3) contributions that are generally unrestricted. The primary sources of the Foundation’s revenue is from the following: Shelby County Schools – the Foundation receives funds from Shelby County Schools (SCS) based on a perpupil allocation. The Foundation received $8,707 per-pupil and had an average of 534 students in the High School and 66 students in the Elementary School for the year ended June 30, 2018. The per-pupil allocation received for the year ended June 30, 2018, totaled $5,222,408 and is included in the Shelby County Schools revenue. Federal Awards – the Foundation is a recipient of Title I and Planning and Implementation federal grant awards. The Foundation recognizes grant income when it is earned. The Foundation recognized $365,887 in federal grant revenue for the year ended June 30, 2018. The Foundation also received $448,000 from the State of Tennessee Capital Outlay Grant, which was disbursed through the Board of Education of the Shelby County Schools. Contributions – Contributions are recognized as support when they are pledged or received. The Foundation report gifts of cash and other assets as unrestricted support unless they are received with donor stipulations that limit the use of the donated assets. Governmental Combined Fund Financial Statements The financial transactions of the Foundation are reported in individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, reserves, fund equity, revenues and expenditures. The Foundation reports the following major governmental fund: The General Fund is the primary operating fund of the Foundation and accounts for all financial resources of the general government, except those required to be accounted for in another fund, if any. The governmental funds’ focus is upon the determination of financial resources, their balance, sources and use, rather than upon net income. In accordance with the applicable GASB statement, the Foundation classifies governmental fund balances as: non-spendable, restricted, committed, assigned and unassigned based on the level of constraints on the fund balances. When an expenditure is incurred in which both restricted and unrestricted funds are available for use, it is the Foundation’s policy to spend restricted funds first, then unrestricted funds. When an expenditure has been incurred for purposes in which multiple categories of unrestricted funds are available, it is the Foundation’s policy to spend funds in the following order, committed, then assigned, and lastly unassigned funds. The classifications of fund balances are defined as follows: Non-spendable – This classification consists of fund balances that cannot be spent because they are either not in spendable form, for example, noncash amounts that are not expected to be converted to cash, or the funds are legally or contractually required to be maintained intact. 18 Page 149 READ FOUNDATION Notes to the Financial Statements June 30, 2018 Restricted – This classification consists of fund balances with external constraints on use imposed by creditors (such as through debt covenants), contributors or laws or regulations of other governments or constraints imposed by law through constitutional provisions or enabling legislation. Committed – This classification consists of fund balances that can only be used for specific purposes established by formal action of the Foundation’s Board of Directors, its highest level of decision making authority. Such commitments should include contractual obligations of fund assets. Fund balance commitments can only be removed by the same process of the same body employed to previously commit those amounts. Assigned – This classification consists of all fund balances that are not in the general fund or classified as non-spendable, restricted, or committed. In addition, general fund balances that the Foundation intends to use for specific purposes are classified as assigned. The Foundation gives the authority to assign amounts for specific purposes to the Schools’ office manager and personnel under the supervision of the schools’ office manager tasked with financial recording responsibilities. Unassigned – This classification consists of all fund balances in the general fund that are not reported as non-spendable, restricted, committed or assigned. Other Accounting Policies Cash and Cash Equivalents The Foundation consider deposits that can be redeemed on demand and investments that have original maturities of less than three months, when purchased, to be cash equivalents. Grants Receivable Grants Receivable represents amounts due from the State of Tennessee for reimbursement of expenses allocated to the Title I and Capital Outlay grants. An allowance for doubtful accounts is maintained based upon collection experience and a review of the collectability of specific outstanding receivables. Receivables are charged against the allowance when they are determined to be uncollectible by management. There is no allowance for doubtful accounts as of June 30, 2018, as management believes all amounts are collectible. Capital Assets Capital assets acquired by the Foundation are considered to be owned by the Foundation. However, State funding sources may maintain equitable interest in the capital assets purchased with grant monies as well as the right to determine the use of any proceeds from the sale of these assets. The State’s equitable interest is in capital assets with an acquisition cost which equals or exceeds $5,000 and an estimated useful life of more than one year. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized. Capital assets purchased are stated at cost, if purchased, or the estimated value on the date received, if donated. Depreciation is computed using the straight-line method over the estimated useful lives of the assets and over the term of the lease for leasehold improvements, ranging from 3 to 39 years. The Foundation follows the practice of capitalizing all expenditures for property and equipment items over $1,500. Accrued Compensated Absences No accrual of compensated absences is necessary for the Foundation’s faculty/staff because the summer months, during which classes are not in session, are considered employees’ vacation. The administrative employees of the Foundation follow the same schedule as the instructors of the charter schools; therefore, no compensated absences accrual for any of the employees of the Foundation is appropriate. Income Taxes The Foundation has been determined to be exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code (IRC) as evidenced by a letter of determination dated September 17, 2009. As an exempt corporation, the Foundation must operate in conformity with the IRC in order to maintain its tax-exempt status. The Foundation is also exempt from state income tax. As of June 30, 2018, the following tax years remain open due to the applicable tax authority’s ability to review and assess previously issued returns: federal – June 30, 2015, 2016, and 2017. 19 Page 150 READ FOUNDATION Notes to the Financial Statements June 30, 2018 Pensions (Teacher Legacy Pension Plan; Teacher Retirement Plan; Public Employee Retirement Plan) For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the above named plans in the Tennessee Consolidated Retirement System (TCRS) and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis as they are reported to the TCRS. For this purpose, benefits (including refunds of employee contributions) are recognized when due and payable in accordance with the benefits terms of the pension plans named above. Investments are reported at fair value. Deferred Outflows / Inflows of Resources As defined in GASB statement 63, in addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, Deferred Outflows of Resources, represents a consumption of net position that applies to a future period and so will not be recognized as an expense or expenditure until then. As defined in GASB statement 63, in addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, Deferred Inflows of Resources, represents an acquisition of net position that applies to a future period and so will not be recognized as revenue until then. Obligations In the government-wide financial statements, debt and other obligations are reported as liabilities in the applicable governmental activities and statement of net position. In the fund financial statements, any obligations secured by capital assets would not be reflected as a liability. Estimates and Uncertainties The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Concentrations Approximately 86% of the Foundation’s funding during the year ended June 30, 2018, was from the Board of Education of Shelby County Schools for their per-pupil allocation. Events occurring after reporting date The Foundation has evaluated subsequent events for potential recognition and disclosure through November 16, 2018, the date that the combined financial statements were approved for issuance. Note 2 – Deposits with Financial Institutions At June 30, 2018, the Foundation’s carrying amount of deposits was $1,108,748 and the bank balances totaled $1,165,341. Accounts at the institution are insured by the Federal Deposit Insurance Company up to an aggregate of $250,000, therefore, the Foundation maintains its bank accounts at a banking institution that is included as a Collateral Pool Participant, which provides collateral coverage for public funds deposits in excess of $250,000 20 Page 151 READ FOUNDATION Notes to the Financial Statements June 30, 2018 Note 3 – Capital Assets Capital asset activity for the year ended June 30, 2018, was as follows: Balance June 30, 2017 Non-depreciable capital assets: Land Construction in progress Total non-depreciable capital assets Depreciable capital assets: Leasehold improvements Building Furniture and equipment Total depreciable capital assets Less accumulated depreciation: Leasehold improvements Building Furniture and equipment Total accumulated depreciation Total depreciable capital assets, net Total capital assets, net $ 2,564,714 2,564,714 Additions $ 355,116 355,116 Transfers/ Disposals Balance June 30, 2018 $ 779,900 $ (2,919,830) (2,139,930) 779,900 779,900 2,567,332 335,278 169,215 2,139,930 - 2,567,332 2,139,930 504,493 2,902,610 169,215 2,139,930 5,211,755 (1,244,079) (239,636) (220,266) (50,297) (56,053) - (1,464,345) (50,297) (295,689) (1,483,715) (326,616) - (1,810,331) 1,418,895 (157,401) 2,139,930 3,401,424 - $ 4,181,324 $ 3,983,609 $ 197,715 $ Depreciation expense was $326,616 for the year ended June 30, 2018. The allocation of this expense is as follows: Governmental Activities: Instructional General and Administrative $ 313,551 13,065 Total depreciation expense - governmental activities $ 326,616 Note 4 – Operating Leases The Foundation leases office and instructional facilities under a lease agreement which will expire July 2020. Rent expenses under this lease totaled $537,592 for the year ended June 30, 2018. The Foundation also leases certain equipment which will expire between August 2019 and June 2021. Rent expense under these leases totaled $20,399 for the year ended June 30, 2018. Future minimum lease payments required under these leases for the years ending June 30 are as follows: Year Ending June 30: 2019 2020 2021 $ 581,713 592,475 56,650 $ 1,230,838 21 Page 152 READ FOUNDATION Notes to the Financial Statements June 30, 2018 Note 5 – Notes payable The Foundation has a $1,680,000 non-revolving line of credit with a financial institution for construction. The line has been fully drawn, bears interest at 4.66%, is secured by real estate, and matures on June 21, 2020. At June 30, 2018, the amount outstanding under this non-revolving line of credit was $1,641,515. The line of credit is payable in monthly principal and interest installments of $10,774. The Foundation also has a $61,567 note payable to a financial institution. The note bears interest at 4.55%, is secured by certain equipment, is payable in monthly principal and interest installments of $1,493, and matures on March 8, 2022. The Foundation also has an $83,887 promissory note with a financial institution for construction. The note bears interest at 5.10%, is secured by certain equipment, is payable in monthly principal and interest installments of $1,804, and matures on October 1, 2022. Beginning Balance Additions Notes payable transactions for the year $ 1,491,808 $ Reductions 513,419 $ Ending Balance (218,258) $ 1,786,969 Due Within One Year $ 89,754 Principal and interest payments required to maturity for the long-term debt agreements mentioned above for the years ending June 30 are as follows: Principal 2019 2020 2021 2022 2023 $ Interest 89,754 1,620,407 36,618 33,638 6,552 $ 79,101 77,362 2,947 1,153 66 $ 1,786,969 $ 160,629 Total $ 168,855 1,697,769 39,565 34,791 6,618 $ 1,947,598 Note 6 – Commitments On July 1, 2013, the Foundation entered into an educational professional services agreement with Harmony Public School, a Texas-based non-profit organization, to provide management and consulting services, training and providing ongoing professional development to the schools in all areas within the charter school system. The contract is a three year agreement which expired June 30, 2016. The Foundation agreed to pay Harmony Public School an annual fee of $15,000 per year. As of June 30, 2016, the contract has been extended an additional three years which will expire on June 30, 2019, with all of the above terms and annual fee remaining the same. On December 31, 2014, the Foundation entered into an educational professional services agreement with Teach for America, a Connecticut-based non-profit organization for recruiting, selecting, training and providing ongoing professional development to teachers within the charter school system. As of June 30, 2018, the contract has been extended an additional two years and will expire on May 31, 2020. The revised terms to the extended agreement are the Foundation agrees to hire a minimum of six (6) teachers from the Teach for America program for the academic years ending 2018, 2019, and 2020 and pay Teach for America an annual fee of $5,000 per teacher for each year the teachers are employed. The Foundation paid $65,000 under this agreement for the year ended June 30, 2018. Note 7 - Teacher Legacy Pension Plan General Information about the Pension Plan Plan description. Teachers with membership in the Tennessee Consolidated Retirement System (TCRS) before July 1, 2014 of the Foundation are provided with pensions through the Teacher Legacy Pension Plan, a cost sharing multiple-employer pension plan administered by the TCRS. The Teacher Legacy Pension Plan closed 22 Page 153 READ FOUNDATION Notes to the Financial Statements June 30, 2018 to new membership on June 30, 2014, but will continue providing benefits to existing members and retirees. Beginning July 1, 2014, the Teacher Retirement Plan became effective for teachers employed by the Foundation after June 30, 2014. The Teacher Retirement Plan is a separate cost-sharing, multiple-employer defined benefit plan. The TCRS was created by state statute under Tennessee Code Annotated Title 8, Chapters 3437. The TCRS Board of Trustees is responsible for the proper operation and administration of all employer pension plans in the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publically available financial report that can be obtained at www.treasury.tn.gov/tcrs. Benefits provided. Tennessee Code Annotated Title 8, Chapters 34-37 establishes the benefit terms and can be amended only by the Tennessee General Assembly. Members of the Teacher Legacy Pension Plan are eligible to retire with an unreduced benefit at age 60 with 5 years of service credit or after 30 years of service credit regardless of age. Benefits are determined by a formula using the member’s highest five consecutive year average compensation and the member’s years of service credit. A reduced early retirement benefit is available at age 55 and vested. Members are vested with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced 10 percent and include projected service credits. A variety of death benefits are available under various eligibility criteria. Member and beneficiary annuitants are entitled to automatic cost of living adjustments (COLAs) after retirement. A COLA is granted each July for annuitants retired prior to the 2nd of July of the previous year. The COLA is based on the change in the consumer price index (CPI) during the prior calendar year, capped at 3 percent, and applied to the current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A one percent COLA is granted if the CPI change is between one-half percent and one percent. A member who leaves employment may withdraw their employee contributions, plus any accumulated interest. Under the Teacher Legacy Pension Plan, benefit terms and conditions, including COLAs, can be adjusted on a prospective basis. Moreover, there are defined cost controls and unfunded liability controls that provide for the adjustment of benefit terms and conditions on an automatic basis. Contributions. Contributions for teachers are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly. Teachers contribute 5 percent of salary. The Foundation makes employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation. By law, employer contributions for the Teacher Legacy Pension Plan are required to be paid. TCRS may intercept the state shared taxes of the sponsoring governmental entity of the Foundation if the required employer contributions are not remitted. Employer contributions by the Foundation for the year ended June 30, 2018, to the Teacher Legacy Pension Plan were $91,330 which is 9.08 percent of covered payroll. The employer rate, when combined with member contributions, is expected to finance the costs of benefits earned by members during the year, the cost of administration, as well as an amortized portion of any unfunded liability. Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Pension liabilities (assets). At June 30, 2018, the Foundation reported a liability (asset) of ($7,511) for its proportionate share of net pension liability (asset). The net pension liability (asset) was measured as of June 30, 2017, and the total pension liability used to calculate the net pension liability (asset) was determined by an actuarial value as of that date. The Foundation’s proportion of the net pension liability was based on the Foundation’s share of contributions to the pension plan relative to the contributions of all participating LEAs. At the measurement date of June 30, 2017, the Foundation’s proportion was 0.022962 percent. The proportion measured as of June 30, 2016, was 0.021745 percent. Pension expense (negative pension expense). For the year ended June 30, 2018, the Foundation recognized pension expense (negative pension expense) of $52,169. 23 Page 154 READ FOUNDATION Notes to the Financial Statements June 30, 2018 Deferred outflows of resources and deferred inflows of resources. For the year ended June 30, 2018, the Foundation reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ 4,529 Changes in assumptions $ 155,105 63,629 - Net difference between projected and actual earnings on pension plan investments 1,140 - Changes in proportion of Net Pension Liability (Asset) 180,664 32,866 91,330 (not applicable) Read Foundation's contributions subsequent to the measurement date of June 30, 2017 Total $ 341,292 $ 187,971 The Foundation’s employer contributions of $91,330, reported as pension related deferred outflows of resources subsequent to the measurement date, will be recognized as an increase in net pension liability (asset) in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended June 30: 2019 2020 2021 2022 2023 Thereafter $ (1,677) 75,181 32,720 (44,233) - In the table above, positive amounts will increase pension expense, while negative amounts will decrease pension expense. Actuarial assumptions. The total pension liability in the June 30, 2017, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Salary increases Investment rate of return Cost-of Living Adjustment 2.5 percent Graded salary ranges from 8.75 to 3.45 percent based on age, including inflation, averaging 4.00 percent 7.25 percent, net of pension plan investment expenses, including inflation 2.25 percent Mortality rates were based on actual experience including an adjustment for some anticipated improvement. 24 Page 155 READ FOUNDATION Notes to the Financial Statements June 30, 2018 The actuarial assumptions used in the June 30, 2017, actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2012 through June 30, 2016. The demographic assumptions were adjusted to more closely reflect actual and expected future experience. Changes of assumptions. In 2017, the following assumptions were changed: decreased inflation rate from 3.00 percent to 2.50 percent; decreased the investment rate of return from 7.50 percent to 7.25 percent; decreased the cost-of-living adjustment from 2.50 percent to 2.25 percent; decreased salary growth graded ranges from an average of 4.25 percent to an average of 4.00 percent; and modified mortality assumptions. The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees in conjunction with the June 30, 2016 actuarial experience study. A blend of future capital market projections and historical market returns was used in a building-block method in which a best-estimate of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) is developed for each major asset class. These best-estimates are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation of 2.5 percent. The best-estimates of geometric real rates of return and the TCRS investment policy target asset allocation for each major asset class are summarized in the following table: Asset Class U.S. equity Developed market international equity Emerging market international equity Private equity and strategic lending U.S. fixed income Real estate Short-term investments Long-Term Expected Real Rate of Return 5.69% 5.29% 6.36% 5.79% 2.01% 4.32% 0.00% Target Allocation 31% 14% 4% 20% 20% 10% 1% 100% The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees as 7.25 percent based on a blending of the factors described above. Discount rate. The discount rate used to measure the total pension liability was 7.25 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current rate and that contributions from all LEAs will be made at the actuarially determined contribution rate pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 25 Page 156 READ FOUNDATION Notes to the Financial Statements June 30, 2018 Sensitivity of the proportionate share of net pension liability (asset) to changes in the discount rate. The following presents the Foundation’s proportionate share of the net pension liability (asset) calculated using the discount rate of 7.25 percent, as well as what the Foundation’s proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.25 percent) or 1percentage-point higher (8.25 percent) than the current rate: 1% Decrease (6.25%) Read Foundation's proportionate share of the net pension liability (asset) $ 674,115 Current Discount Rate (7.25%) $ (7,511) $ 1% Increase (8.25%) (570,923) Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position is available in a separately issued TCRS financial report. Payable to the Pension Plan At June 30, 2018, the Foundation reported a payable of $41,850 for the outstanding amount of contributions to the pension plan required at the year ended June 30, 2018. Note 8 – Non-Teacher Retirement Plan General Information about the Pension Plan Plan description. Employees of the Foundation are provided a defined benefit pension plan through the Public Employee Retirement Plan, an agent multiple-employer pension plan administered by the TCRS. The TCRS was created by state statute under Tennessee Code Annotated Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publically available financial report that can be obtained at www.treasury.tn.gov/tcrs. Benefits provided. Tennessee Code Annotated Title 8, Chapters 34-37 establishes the benefit terms and can be amended only by the Tennessee General Assembly. The chief legislative body may adopt the benefit terms permitted by statute. Members are eligible to retire with an unreduced benefit at age 60 with 5 years of service credit or after 30 years of service credit regardless of age. Benefits are determined by a formula using the member’s highest five consecutive year average compensation and the member’s years of service credit. Reduced benefits for early retirement are available at age 55 and vested. Members vest with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced 10 percent and include projected service credits. A variety of death benefits are available under various eligibility criteria. Member and beneficiary annuitants are entitled to automatic cost of living adjustments (COLAs) after retirement. A COLA is granted each July for annuitants retired prior to the 2nd of July of the previous year. The COLA is based on the change in the consumer price index (CPI) during the prior calendar year, capped at 3 percent, and applied to the current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A one percent COLA is granted if the CPI change is between one-half percent and one percent. A member who leaves employment may withdraw their employee contributions, plus any accumulated interest. 26 Page 157 READ FOUNDATION Notes to the Financial Statements June 30, 2018 Employees covered by benefit terms. At the measurement date of June 30, 2017, the following employees were covered by benefit terms: Inactive employees or beneficiaries currently receiving benefits Inactive employees entitled to but not yet receiving benefits Active employees Total Employees 4,452 7,154 3,921 15,527 Contributions. Contributions for employees are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly. Employees contribute 5 percent of salary. The Foundation makes employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation. For the year ended June 30, 2018, the employer contributions for the Foundation were $16,182 based on a rate of 7.00 percent of covered payroll. By law, employer contributions are required to be paid. The TCRS may intercept the Foundation’s state shared taxes if required employer contributions are not remitted. The employer’s ADC and member contributions are expected to finance the costs of benefits earned by members during the year, the cost of administration, as well as an amortized portion of any unfunded liability. Net Pension Liability (Asset) The Foundation’s net pension liability (asset) was measured as of June 30, 2017, and the total pension liability used to calculate net pension liability (asset) was determined by an actuarial valuation as of that date. Actuarial assumptions. The total pension liability in the June 30, 2017, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Salary increases Investment rate of return Cost-of Living Adjustment 2.5 percent Graded salary ranges from 8.75 to 3.45 percent based on age, including inflation, averaging 4.00 percent 7.25 percent, net of pension plan investment expenses, including inflation 2.25 percent Mortality rates were based on actual experience including an adjustment for some anticipated improvements. The actuarial assumptions used in the June 30, 2017, actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2012 through June 30, 2016. The demographic assumptions were adjusted to more closely reflect actual and expected future experience. Changes in assumptions. In 2017, the following assumptions were changed: decreased inflation rate from 3.00 percent to 2.50 percent; decreased the investment rate of return from 7.50 percent to 7.25 percent; decreased the cost-of-living adjustment from 2.50 percent to 2.25 percent; decreased salary growth graded ranges from an average of 4.25 percent to an average of 4.00 percent; and modified mortality assumptions. 27 Page 158 READ FOUNDATION Notes to the Financial Statements June 30, 2018 The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees in conjunction with the June 30, 2016 actuarial experience study. A blend of future capital market projections and historical market returns was used in a building-block method in which a best-estimate of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) is developed for each major asset class. These best-estimates are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation of 2.5 percent. The best-estimates of geometric real rates of return and the TCRS investment policy target asset allocation for each major asset class are summarized in the following table: Asset Class U.S. equity Developed market international equity Emerging market international equity Private equity and strategic lending U.S. fixed income Real estate Short-term investments Long-Term Expected Real Rate of Return Target Allocation 5.69% 5.29% 6.36% 5.79% 2.01% 4.32% 0.00% 31% 14% 4% 20% 20% 10% 1% 100% The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees as 7.25 percent based on a blending of the three factors described above. Discount rate. The discount rate used to measure the total pension liability was 7.25 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current rate and that contributions from all LEAs will be made at the actuarially determined contribution rate pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make projected future benefit payments of current active and inactive members. Therefore, the longterm expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 28 Page 159 READ FOUNDATION Notes to the Financial Statements June 30, 2018 Changes in the Net Pension Liability (Asset) Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (Asset) (a) (b) (a) - (b) Balance at 6/30/16 $ 406,732 Changes for the year: Service cost Interest Differences between expected and actual experience Changes in assumptions Contributions - employer Contributions - employees Net investment income Benefit payments, including refunds of employee contributions Administrative expense Other changes Net changes Balance at 6/30/17 $ $ 426,624 $ (19,892) 8,265 30,174 - 8,265 30,174 2,182 9,001 - 8,583 4,635 47,649 2,182 9,001 (8,583) (4,635) (47,649) (25,347) 24,275 (25,347) (197) 62 35,385 197 (62) (11,110) 431,007 $ 462,009 $ (31,002) Sensitivity of the net pension liability (asset) to changes in the discount rate. The following presents the net pension liability (asset) of the Foundation calculated using the discount rate of 7.25 percent, as well as what the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.25 percent) or 1-percentage-point higher (8.25 percent) than the current rate: 1% Decrease (6.25%) Read Foundation's proportionate share of the net pension liability (asset) $ 20,379 Current Discount Rate (7.25%) $ (31,002) $ 1% Increase (8.25%) (73,914) Pension Expense (Negative Pension Expense) and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Pension expense (negative pension expense). For the year ended June 30, 2018, the Foundation recognized pension expense (negative pension expense) of ($3,867). 29 Page 160 READ FOUNDATION Notes to the Financial Statements June 30, 2018 Deferred outflows of resources and deferred inflows of resources. For the year ended June 30, 2018, the Foundation reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ Net difference between projected and actual earnings on pension plan investments Changes in assumptions Contributions subsequent to the measurement date of June 30, 2017 Total $ 1,746 $ 14,783 18 - 7,201 - 16,182 (not applicable) 25,147 $ 14,783 The amount shown above for "Contributions subsequent to the measurement date of June 30, 2017," will be recognized as a reduction (increase) to net pension liability (asset) in the following measurement period. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended June 30: 2019 2020 2021 2022 2023 Thereafter $ (6,270) 505 932 (986) - In the table above, positive amounts will increase pension expense, while negative amounts will decrease pension expense. Payable to the Pension Plan At June 30, 2018, the Foundation reported a payable of $3,053 for the outstanding amount of contributions to the pension plan required at the year ended June 30, 2018. 30 Page 161 READ FOUNDATION Notes to the Financial Statements June 30, 2018 Note 9 – Teacher Retirement Plan (After June 30, 2014) General Information about the Pension Plan Plan description. Teachers with membership in the Tennessee Consolidated Retirement System (TCRS) before July 1, 2014, of the Foundation are provided with pensions through the Teacher Retirement Plan, a cost sharing multiple-employer pension plan administered by the TCRS. The Teacher Legacy Pension Plan closed to new membership on June 30, 2014, but will continue providing benefits to members and retirees. Beginning July 1, 2014, the Teacher Retirement Plan became effective for teachers employed by the Foundation after June 30, 2014. T he Teacher Retirement Plan is a separate cost sharing, multiple-employer defined benefit plan. The TCRS was created by state statute under Tennessee Code Annotated Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of all employer pension plans in the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publically available financial report that can be obtained at www.treasury.tn.gov/tcrs. Benefits provided. Tennessee Code Annotated Title 8, Chapters 34-37 establishes the benefit terms and can be amended only by the Tennessee General Assembly. Members of the Teacher Retirement Plan are eligible to retire with an unreduced benefit at age 65 with 5 years of service credit or pursuant to the rule of 90 in which the member’s age and service credit total 90. Benefits are determined by a formula using the member’s highest five consecutive year average compensation and the member’s years of service credit. A reduced early retirement benefit is available at age 60 and vested or pursuant to the rule of 80. Members are vested with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced 10 percent and include projected service credits. A variety of death benefits are available under various eligibility criteria. Member and beneficiary annuitants are entitled to automatic cost of living adjustments (COLAs) after retirement. A COLA is granted each July for annuitants retired prior to the 2nd of July of the previous year. The COLA is based on the change in the consumer price index (CPI) during the prior calendar year, capped at 3 percent, and applied to the current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A one percent COLA is granted if the CPI change is between one-half percent and one percent. A member who leaves employment may withdraw their employee contributions, plus any accumulated interest. Under the Teacher Retirement Plan, benefit terms and conditions, including COLAs, can be adjusted on a prospective basis. Moreover, there are defined cost controls and unfunded liability controls that provide for the adjustment of benefit terms and conditions on an automatic basis. Contributions. Contributions for teachers are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly or by automatic cost controls set out in law. Teachers contribute 5 percent of salary. The Foundation makes employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation. Per the statutory provisions governing the TCRS, the employer contribution rate cannot be less than 4 percent, except for in years when the maximum funded level, approved by the TCRS Board of Trustees, is reached. By law, employer contributions for the Teacher Retirement Plan are required to be paid. The TCRS may intercept the state shared taxes of the sponsoring governmental entity of the Foundation if the required employer contributions are not remitted. Employer contributions by the Foundation for the year ended June 30, 2018, to the Teacher Retirement Plan were $58,120 which is 4.00 percent of covered payroll. The employer rate, when combined with member contributions, is expected to finance the costs of benefits earned by members during the year, the cost of administration, as well as an amortized portion of any unfunded liability. Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Pension liabilities (assets). At June 30, 2018, the Foundation reported a liability (asset) of ($39,093) for its proportionate share of net pension liability (asset). The net pension liability (asset) was measured as of June 30, 2017, and the total pension asset used to calculate the net pension liability (asset) was determined by an actuarial value as of that date. The Foundation’s proportion of the net pension liability (asset) was based on The 31 Page 162 READ FOUNDATION Notes to the Financial Statements June 30, 2018 Foundation’s share of contributions to the pension plan relative to the contributions of all participating LEAs. At the measurement date of June 30, 2017, the Foundation’s proportion was 0.148179 percent. The proportion measured as of June 30, 2016, was 0.189570 percent. Pension expense (negative pension expense). For the year ended June 30, 2018, the Foundation recognized pension expense (negative pension expense) of $17,940. Deferred outflows of resources and deferred inflows of resources. For the year ended June 30, 2018, the Foundation reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ 1,370 Net difference between projected and actual earnings on pension plan investments $ 2,940 - 2,104 Changes in assumptions 3,435 - Changes in proportion of Net Pension Liability (Asset) 4,583 1,394 Read Foundation's contributions subsequent to the measurement date of June 30, 2017 58,120 (not applicable) Total $ 67,508 $ 6,438 The Foundation’s employer contributions of $58,120, reported as pension related deferred outflows of resources, subsequent to the measurement date, will be recognized as an increase of net pension liability (assets) in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended June 30: 2019 2020 2021 2022 2023 Thereafter $ 21 21 (100) (641) 351 3,298 In the table above, positive amounts will increase pension expense, while negative amounts will decrease pension expense. 32 Page 163 READ FOUNDATION Notes to the Financial Statements June 30, 2018 Actuarial assumptions. The total pension liability in the June 30, 2017, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Salary increases Investment rate of return Cost-of Living Adjustment 2.5 percent Graded salary ranges from 8.75 to 3.45 percent based on age, including inflation, averaging 4.00 percent 7.25 percent, net of pension plan investment expenses, including inflation 2.25 percent Mortality rates are customized based on actual experience including an adjustment for some anticipated improvement. The actuarial assumptions used in the June 30, 2016, actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2012 through June 30, 2016. The demographic assumptions were adjusted to more closely reflect actual and expected future experience. Changes of assumptions. In 2017, the following assumptions were changed: decreased inflation rate from 3.00 percent to 2.50 percent; decreased the investment rate of return from 7.50 percent to 7.25 percent; decreased the cost-of-living adjustment from 2.50 percent to 2.25 percent; and decreased salary growth graded ranges from an average 4.25 percent to an average of 4.00 percent. The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees in conjunction with the June 30, 2016 actuarial experience study. A blend of future capital market projections and historical market returns was used in a building-block method in which a best-estimate of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) is developed for each major asset class. These best-estimates are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation of 2.5 percent. The best-estimates of geometric real rates of return and the TCRS investment policy target asset allocation for each major asset class are summarized in the following table: Asset Class U.S. equity Developed market international equity Emerging market international equity Private equity and strategic lending U.S. fixed income Real estate Short-term investments Long-Term Expected Real Rate of Return 5.69% 5.29% 6.36% 5.79% 2.01% 4.32% 0.00% Target Allocation 31% 14% 4% 20% 20% 10% 1% 100% The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees as 7.25 percent based on a blending of the three factors described above. Discount rate. The discount rate used to measure the total pension liability was 7.25 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current rate and that contributions from all LEAs will be made at the actuarially determined contribution rate pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 33 Page 164 READ FOUNDATION Notes to the Financial Statements June 30, 2018 Sensitivity of the proportionate share of net pension liability (asset) to changes in the discount rate. The following presents the Foundation’s proportionate share of the net pension liability (asset) calculated using the discount rate of 7.25 percent, as well as what the Foundation’s proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.25 percent) or 1percentage-point higher (8.25 percent) than the current rate: 1% Decrease (6.25%) Read Foundation's proportionate share of the net pension liability (asset) $ 7,800 Current Discount Rate (7.25%) $ 1% Increase (8.25%) (39,093) $ (73,493) Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position is available in a separately issued TCRS financial report. Payable to the Pension Plan At June 30, 2018, the Foundation reported a payable of $6,691 for the outstanding amount of contributions to the pension plan required at the year ended June 30, 2018. 401(k) Plan The Teacher Retirement Plan provides a combination of a defined benefit plan and a defined contribution plan. The defined benefit portion of the Teacher Retirement Plan is managed by TCRS. The defined contribution assets are deposited into the State’s 401(k) plan where the employees manage the investments within the 401(k) plan. Contributions are made on a tax-deferred basis. Employer contributions by the Foundation for the year ended June 30, 2018, to the 401(k) plan were $72,650 which is 5 percent of covered payroll. Note 10 – Reconciliation of Net Pension Assets and Liabilities at June 30, 2018 Net Pension Asset Teacher Legacy Pension Plan 7,511 $ 341,292 Non-Teacher Retirement Plan 31,002 Teacher Retirement Plan (After June 30, 2014) Total assets and liabilities $ Deferred Outflows of Resources $ Net Pension Liability $ Deferred Inflows of Resources - $ 187,971 25,147 - 14,783 39,093 67,508 - 6,438 77,606 $ 433,947 - $ 209,192 $ Note 11 – Risk Management The Foundation is exposed to the normal risks of loss related to torts; theft or damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Foundation’s policy is to minimize these risks through the purchase of commercial insurance. Settled claims have not exceeded the commercial insurance coverage in the past three years. 34 Page 165 Required Supplementary Information Page 166 READ FOUNDATION Required Supplementary Information June 30, 2018 Schedule of Proportionate Share of the Net Pension Liability (Asset)* Teacher Legacy Pension Plan of the TCRS Last Fiscal Year Ended June 30 2017 Memphis School of Excellence's proportion of the net pension liability (asset) $ Memphis School of Excellence's proportionate share of the net pension liability (asset) Memphis School of Excellence's covered payroll 2016 (7,511) $ 135,893 2015 $ 2014 - 0.022962% 0.021745% 0.000000% $ 811,701 $ 784,941 $ - $ 5,648 0.034755% $ 1,364,143 Memphis School of Excellence's proportionate share of the net pension liability (asset) as a percentage of its covered payroll -0.93% 17.31% 0.00% 0.41% Plan fiduciary net position as a percentage of the total pension liability 100.14% 97.14% 0.00% 100.08% * GASB 68 requires a 10-year schedule for this data to be presented starting with the implementation of GASB 68. The information in this schedule is not required to be presented retroactively prior to the implementation date. Please refer to previously supplied data from the TCRS GASB website for prior year's data, if needed. See independent auditor’s report 36 Page 167 READ FOUNDATION Required Supplementary Information June 30, 2018 Schedule of Contributions Teacher Legacy Pension Plan of the TCRS Last Fiscal Year Ended June 30 2018 Contractually required $ Contribution in relation to the contractually required contribution 2017 91,330 $ 91,330 2016 73,378 73,378 Contribution deficiency (excess) $ - $ - Memphis School of Excellence's covered payroll $ 1,005,837 $ 811,704 Contributions as a percentage of Memphis School of Excellence's covered payroll 9.08% $ 9.04% 2015 70,959 $ 70,959 $ - $ 784,941 9.04% $ 2014 91,917 $ 121,136 91,917 121,136 - $ 1,016,779 9.04% $ - $ 1,364,144 8.88% * GASB 68 requires a 10-year schedule for this data to be presented starting with the implementation of GASB 68. The information in this schedule is not required to be presented retroactively prior to the implementation date. Please refer to previously supplied data from the TCRS GASB website for prior year's data, if needed. See independent auditor’s report 37 Page 168 READ FOUNDATION Required Supplementary Information June 30, 2018 Schedule of Changes in Net Pension Liability (Asset) and Related Ratios* Based on Participation in the Public Employee Pension Plan of the TCRS – Non Teacher Last Fiscal Year Ending June 30 2017 Total pension liability Service cost Interest Changes in benefit terms Differences between actual & expected experience Change of assumptions Benefit payments, including refunds of employee contributions Net change in total pension liability Total pension liability - beginning Total pension liability - ending (a) $ $ 2016 2015 2014 8,265 $ 30,174 2,182 9,001 (25,347) 24,275 406,732 431,007 $ 5,620 $ 19,995 (7,217) (16,445) 1,953 269,202 271,155 $ 5,728 $ 19,398 (412) (16,860) 7,854 261,347 269,201 $ 8,757 24,997 (20,101) (22,997) (9,344) 336,028 326,684 5,405 $ 2,917 7,455 (16,445) (115) 386 (397) 284,814 284,417 $ 5,289 $ 2,853 8,653 (16,860) (77) (142) 284,956 284,814 $ 7,579 4,241 51,507 (22,997) (106) 40,224 315,972 356,196 Plan fiduciary net position Contributions - employer Contributions - employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Other Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b) $ 8,583 $ 4,635 47,649 (25,347) (197) 61 35,384 426,624 462,008 $ Net Pension Liability (Asset) - ending (a) - (b) $ (31,001) $ (13,262) $ (15,613) $ (29,512) 107.19% 104.89% 105.80% 109.03% $ Plan fiduciary net position as a percentage of total pension liability Covered payroll Net pension liability (asset) as a percentage of covered payroll $ 92,489 -33.52% $ 58,527 -22.66% $ 53,898 28.97% $ 84,344 34.99% See independent auditor’s report 38 Page 169 READ FOUNDATION Required Supplementary Information June 30, 2018 Notes to Schedule: Changes of assumptions . In 2017, amounts reported as changes of assumptions resulted from changes to the inflation rate, investment rate of return, cost-of-living adjustment, salary growth and mortality improvements. ** GASB 68 requires a 10-year schedule for this data to be presented starting with the implementation of GASB 68 . The information in this schedule is not required to be presented retroactively prior to the implementation date. Please refer to previously supplied data from TCRS GASB website for prior years' data, if needed. See independent auditor’s report 39 Page 170 READ FOUNDATION Required Supplementary Information June 30, 2018 Schedule of Contributions* Based Upon Participation in the Public Employee Pension Plan of the TCRS – Non Teacher Last Fiscal Year Ending June 30 2018 Actuarially determined contribution $ Contributions in relation to the actuarially determined contribution 2017 16,182 $ 16,182 2016 8,583 $ 8,583 2015 5,405 $ 5,405 2014 4,038 $ 4,038 7,579 7,579 Contribution deficiency (excess) $ - $ - $ - $ - $ - Covered payroll $ 231,171 $ 92,489 $ 58,527 $ 43,560 $ 84,344 Contributions as a percentage of covered payroll 7.00% 9.28% 9.24% 9.27% 8.99% * GASB 68 requires a 10-year schedule for this data to be presented starting with the implementation of GASB 68. The information in this schedule is not required to be presented retroactively prior to the implementation date. Please refer to previously supplied data from the TCRS GASB website for prior year's data, if needed. Notes to Schedule Valuation date: Actuarially determined contribution rates for fiscal year 2018 were calculated based on June 30, 2017, actuarial valuation. Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method Remaining amortization period Asset valuation Inflation Salary increases Investment Rate of Return Retirement age Mortality Cost of Living Adjustments Entry age normal Level dollar, closed (not to exceed 20 years) Varies by Year 10-year smoothed within a 20 percent corridor to market value 3.0 percent Graded salary ranges from 8.97 to 3.71 percent based on age, including inflation 7.50 percent, net of investment expense, including inflation Pattern of retirement determined by experience study Customized table based on actual experience including an adjustment for some anticipated improvement 2.50 percent See independent auditor’s report 40 Page 171 READ FOUNDATION Required Supplementary Information June 30, 2018 Schedule of Proportionate Share of the Net Pension Liability (Asset)* Teacher Retirement Plan of the TCRS Last Fiscal Year Ended June 30 2017 Memphis School of Excellence's proportion of the net pension liability (asset) 0.148179% Memphis School of Excellence's proportionate share of the net pension liability (asset) $ Memphis School of Excellence's covered payroll $ 1,001,284 Memphis School of Excellence's proportionate share of the net pension liability (asset) as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total pension liability 2016 2015 2014 0.189570% 0.000000% 0.000000% (39,093) $ (19,735) $ $ 834,118 $ - $ - - $ - -3.90% -2.37% 0.00% 0.00% 126.81% 121.88% 0.00% 0.00% * GASB 68 requires a 10-year schedule for this data to be presented starting with the implementation of GASB 68. The information in this schedule is not required to be presented retroactively prior to the implementation date. Please refer to previously supplied data from the TCRS GASB website for prior year's data, if needed. See independent auditor’s report 41 Page 172 READ FOUNDATION Required Supplementary Information June 30, 2018 Schedule of Contributions Teacher Retirement Plan of the TCRS Last Fiscal Year Ended June 30 2018 Contractually required contribution $ Contribution in relation to the contractually required contribution 2017 58,120 58,120 Contribution deficiency (excess) $ Memphis School of Excellence's covered payroll $ 1,453,000 Contributions as a percentage of Memphis School of Excellence's covered payroll $ - 4.00% 2016 38,902 38,902 $ - $ 1,001,284 3.89% $ 20,880 33,365 2015 $ 287 2014 $ 11,486 - - $ (12,485) $ (11,199) $ - $ 834,118 - 4.00% $ 287,166 4.00% $ 0.00% * GASB 68 requires a 10-year schedule for this data to be presented starting with the implementation of GASB 68. The information in this schedule is not required to be presented retroactively prior to the implementation date. Please refer to previously supplied data from the TCRS GASB website for prior year's data, if needed. See independent auditor’s report 42 Page 173 Other Supplementary Information Page 174 READ FOUNDATION Combining Schedule of Assets, Liabilities, and Fund Balances – Governmental Funds June 30, 2018 Governmental Activities ASSETS Cash Grants receivable Prepaid expenses TOTAL ASSETS LIABILITIES Accounts payable Accrued liabilities TOTAL LIABILITIES Memphis School of Excellence Memphis School of Excellence Elementary School $ 837,865 34,113 105,785 $ 270,883 - $ - $ 1,108,748 34,113 105,785 $ 977,763 $ 270,883 $ - $ 1,248,646 $ $ $ - $ 17,929 73,344 - Elimination TOTAL 17,929 73,344 91,273 - - 91,273 105,785 780,705 270,883 - 105,785 1,051,588 TOTAL FUND BALANCE 886,490 270,883 - 1,157,373 TOTAL LIABILITIES AND FUND BALANCE $ 977,763 $ 270,883 - $ 1,248,646 FUND BALANCE Non-spendable Unassigned $ See independent auditor’s report 44 Page 175 READ FOUNDATION Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds For the Year Ended June 30, 2018 General Funds Memphis School of Excellence Memphis Elementary School of School Excellence Revenues: Shelby County Schools Operating grants and contributions Capital grants and contributions Charges for services Elimination $ 4,647,771 365,887 424,000 76,059 574,637 24,000 6,121 5,513,717 604,758 (13,250) 6,105,225 2,208,904 740,501 1,317,173 269,198 341,124 39,428 86,670 77,145 (13,250) 2,550,028 779,929 1,403,843 333,093 524,331 - - 524,331 218,258 82,350 - - 218,258 82,350 5,360,715 544,367 153,002 60,391 - 213,393 Other financial sources Issuance of notes payable Transfers 513,419 (70,336) 70,336 - 513,419 - Change in fund balance 596,085 130,727 - 726,812 Fund balance - beginning of year 290,405 140,156 - 430,561 886,490 $ 270,883 - $ 1,157,373 TOTAL REVENUES Expenditures: Current: Salaries, wages, and benefits: Instructional General and administrative Instructional General and administrative Capital Outlay: Current expenditures Debt Service: Principal payments on long-term debt Interest Total expenditures Revenue over (under) expenditures Fund balance - end of year $ $ TOTAL - $ 5,222,408 365,887 448,000 (13,250) 68,930 (13,250) $ 5,891,832 See independent auditor’s report 45 Page 176 READ FOUNDATION Schedule of Combined Expenditures of Federal Awards and State Financial Assistance Federal Grantor / Pass-through Grantor / Program Title For the Year Ended June 30, 2018 CFDA Contract Number Number Expenditures Federal Awards U.S. Department of Education / Board of Education of Shelby County Schools / Title I Grants to Local Educational Agencies 84.010 N/A U.S. Department of Education / Office of Innovation and Improvement / Charter Schools Program 84.282 N/A $ 222,251 143,636 Total Federal Awards 365,887 State Financial Assistance Tennessee Department of Education / Board of Education of Shelby County Schools / ADA Per-Pupil Funding Allocation N/A N/A 5,222,408 Tennessee Department of Education / Board of Education of Shelby County Schools / Capital Outlay Funding N/A N/A 263,000 Tennessee Department of Education / Board of Education of Shelby County Schools / High-Quality Charter School Facilities Program N/A N/A 185,000 Total State Financial Assistance Total Federal Awards and State Financial Assistance 5,670,408 $ 6,036,295 Note 1 - Basis of Presentation The Schedule of Combined Expenditures of Federal Awards and State Financial Assistance includes the federal and state grant activity of the Read Foundation for the year then ended June 30, 2018, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the State of Tennessee Department of Audit, Audit Manual. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic combined financial statements. See independent auditor’s report 46 Page 177 Non-Financial Information Page 178 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Directors Read Foundation Memphis, Tennessee We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the combined financial statements of the governmental activities and the major fund of the Read Foundation as of and for the year ended June 30, 2018, and the related notes to the combined financial statements, which collectively comprise the Read Foundation’s basic combined financial statements, and have issued our report thereon dated November 16, 2018. Internal Control over Financial Reporting In planning and performing our audit of the combined financial statements, we considered the Read Foundation’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the combined financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Read Foundation’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Read Foundation’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s combined financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Read Foundation’s combined financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of combined financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. CANNON WRIGHT BLOUNT PLLC PHONE 901.685.7500 756 RIDGE LAKE BLVD FAX 901.685.7569 MEMPHIS TN 38120 WWW.CANNONWRIGHTBLOUNT.COM Page 179 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Memphis, Tennessee November 16, 2018 49 Page 180 READ FOUNDATION Schedule of Findings and Responses For the Year Ended June 30, 2018 There were no findings and/or responses for the fiscal year ended June 30, 2018. 50 Page 181 READ FOUNDATION Schedule of Prior Year Findings and Responses June 30, 2018 There were no findings and/or responses for the fiscal year ended June 30, 2017. 51 Page 182 Read Foundation Financial Statements June 30, 2017 Page 183 READ FOUNDATION Title Page June 30, 2017 ANNUAL FINANCIAL REPORT TENNESSEE PUBLIC CHARTER SCHOOLS OPERATED BY the READ FOUNDATION MEMPHIS SCHOOL OF EXCELLENCE MEMPHIS SCHOOL OF EXCELLENCE ELEMENTARY SCHOOL Page 184 READ FOUNDATION Table of Contents June 30, 2017 Page Governance Officials ............................................................................................................................................... 4 Independent Auditor’s Report ................................................................................................................................ 5 Management’s Discussion and Analysis ............................................................................................................... 8 Basic Combined Financial Statements Government-Wide Financial Statements: Combined Statement of Net Position ........................................................................................................... 12 Combined Statement of Activities ................................................................................................................. 13 Combined Fund-Financial Statements: Combined Balance Sheet - Governmental Funds ........................................................................................ 14 Reconciliation of the Combined Balance Sheet to the Combined Statement of Net Position – Governmental Activities .............................................................................. 15 Combined Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds ............................................................................................................................... 16 Reconciliation of the Combined Statement of Revenues, Expenditures, and Changes in Fund Balance of Governmental Funds to the Combined Statement of Activities .................................... 17 Notes to the Combined Financial Statements ................................................................................................... 18 Required Supplementary Information Schedule of Proportionate Share of the Net Pension Liability (Asset) – Teacher Legacy Pension Plan of TCRS ....................................................................................................... 37 Schedule of Contributions – Teacher Legacy Pension Plan of TCRS ............................................................... 38 Schedule of Changes in Net Pension Liability (Asset) and Related Ratios Based on Participation in the Public Employee Pension Plan of TCRS – Non Teacher............................................... 39 Schedule of Contributions Based Upon Participation in the Public Employee Pension Plan of TCRS – Non Teacher ......................................................................................................... 40 Schedule of Proportionate Share of the Net Pension Liability (Asset) Teacher Retirement Plan of TCRS ............................................................................................................... 41 Schedule of Contributions – Teacher Retirement Plan of TCRS ....................................................................... 42 Other Supplementary Information Combining Schedule of Assets, Liabilities, and Fund Balances – Governmental Funds .................................. 44 2 Page 185 READ FOUNDATION Table of Contents June 30, 2017 Page Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds .................................................................................................................................... 45 Schedule of Combined Expenditures of Federal Awards and State Financial Assistance................................ 46 Non-Financial Information Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................................... 48 Schedule of Findings and Responses ............................................................................................................... 50 Schedule of Prior Year Findings and Responses .............................................................................................. 51 3 Page 186 READ FOUNDATION Governance Officials June 30, 2017 BOARD OF DIRECTORS Dr. Cem Akkus, President Patty Farmer, Treasurer Dr. Fatih Sen, Secretary Dr. Richard Potts Bayram Demirbuga ADMINISTRATIVE OFFICIALS Muhammet Turkay, Executive Director 4 Page 187 INDEPENDENT AUDITOR’S REPORT To the Board of Directors Read Foundation Memphis, Tennessee Report on the Combined Financial Statements We have audited the accompanying combined financial statements of the governmental activities and the major fund of the Read Foundation as of and for the year ended June 30, 2017, and the related notes to the combined financial statements, which collectively comprise the Read Foundation’s basic combined financial statements as listed in the table of contents. Management’s Responsibility for the Combined Financial Statements Management is responsible for the preparation and fair presentation of these combined financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of combined financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these combined financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the combined financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the combined financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the combined financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the combined financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the combined financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the combined financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and the major fund of the Read Foundation as of June 30, 2017, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. CANNON WRIGHT BLOUNT PLLC PHONE 901.685.7500 756 RIDGE LAKE BLVD FAX 901.685.7569 MEMPHIS TN 38120 WWW.CANNONWRIGHTBLOUNT.COM Page 188 Emphasis of Matter As discussed in Note 1 of the combined financial statements, the Read Foundation follows GASB Statement No. 68, Accounting and Financial Reporting for Pensions. As a result of the continuing implementation, the Read Foundation increased their governmental activities net position by $299,534 as of June 30, 2016. This restatement was necessary to continue the transition of this accounting guidance. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the required supplementary information as listed in the table of contents be presented to supplement the basic combined financial statements. Such information, although not a part of the basic combined financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic combined financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the management’s discussion and analysis and the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic combined financial statements, and other knowledge we obtained during our audit of the basic combined financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the combined financial statements that collectively comprise the Read Foundation’s basic combined financial statements. The governance officials schedule, the combining financial statements of the governmental funds, and the schedule of combined expenditures of federal awards and state financial assistance are presented for purposes of additional analysis and are not a required part of the basic combined financial statements. The combining financial statements of the governmental funds and the schedule of combined expenditures of federal awards and state financial assistance are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic combined financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic combined financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic combined financial statements or to the basic combined financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining financial statements of the governmental funds and the schedule of combined expenditures of federal awards and state financial assistance are fairly stated, in all material respects, in relation to the basic combined financial statements as a whole. The governance officials schedule has not been subjected to the auditing procedures applied in the audit of the basic combined financial statements and, accordingly, we do not express an opinion or provide any assurance on it. 6 Page 189 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report, dated November 13, 2017, on our consideration of the Read Foundation’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Read Foundation’s internal control over financial reporting and compliance. Memphis, Tennessee November 13, 2017 7 Page 190 READ FOUNDATION Management’s Discussion and Analysis June 30, 2017 The following Management’s Discussion and Analysis (MD&A) of the Read Foundation’s (“the Foundation”) activities and financial performance provides the reader with an introduction and overview to the financial statements of the Foundation for the year ended June 30, 2017. This information should be considered within the context of the accompanying financial statements and note disclosures. OVERVIEW OF THE FINANCIAL STATEMENTS Financial Highlights  The assets of the Read Foundation exceeded its liabilities at the end of the fiscal year by $3,118,713 (net position).  The Read Foundation’s total net position increased by $692,724, due to an operating profit of $393,190 plus a pension related adjustment of $299,534 to beginning net position.  The Read Foundation’s total expenses increased by $741,930, primarily due to increase in salaries and for the addition of several new teachers and office expenses. This financial report consists of a series of financial statements, notes to those statements, and required supplementary information. The statements are organized so that the reader can understand the Read Foundation as a whole and then proceed to a detailed look at specific financial activities of the Read Foundation. Reporting the Read Foundation as a Whole The Statement of Net Position and Statement of Activities: In general, users of these financial statements want to know if the Foundation is better off or worse off as a result of the year’s activities. The Statement of Net Position and Statement of Activities report information about the Foundation as a whole and about the Foundation’s activities in a manner that helps to answer that question. These statements include all assets and liabilities using the accrual basis of accounting. Under the accrual basis, all of the current year’s revenue and expenses are taken into consideration regardless of when cash is received or paid. The Statement of Net Position reports the Foundation’s net position (total assets less total liabilities). Private sector entities would report retained earnings. The Foundation’s net position balance at year-end represents available resources for future growth. The Statement of Activities reports the change in net position as a result of activity during the year. Private sector entities have a similar report titled the statement of operations, which reports net income. It provides the user a tool to assist in determining the direction of the Foundation’s financial health during the year. Users will want to consider non-financial factors as well as the financial data in arriving at a conclusion regarding the overall health of the Foundation. Reporting the Read Foundation’s Funds Fund Financial Statements: The Read Foundation’s governmental fund financial statements, the Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balances, provide detailed information about the Foundation’s most significant funds, not the Foundation as a whole. Funds are established by the Foundation to help manage money for particular purposes and compliance with various grant provisions. The Read Foundation funds are categorized as “governmental funds.” Governmental funds focus on how money flows into and out of the funds and the balances left at year-end that are available for spending in future periods. Fund financial statements are reported using an accounting method called “modified accrual” accounting, which measures cash and other financial assets that can readily be converted to cash. This basis of accounting is different from the accrual basis used in the government – wide financial statements to report on the Foundation as a whole. The modified accrual basis of accounting treats capital assets purchased and debt payments as expenses and new debt as income. There is no depreciation expense since the capital assets are expensed when acquired. Capital assets acquired during the current year were $1,734,885. The relationship between governmental activities, as reported in the Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balances is reconciled following the basic financial statements. 8 Page 191 READ FOUNDATION Management’s Discussion and Analysis June 30, 2017 FINANCIAL ANALYSIS A summary of the Read Foundation’s financial position for its governmental activities is as follows: 2017 Assets $ 5,334,692 Increase (Decrease) 2016 $ 4,477,959 $ 856,733 Liabilities 2,215,979 2,051,970 164,009 Net position Invested in capital assets Unrestricted 2,491,801 626,912 1,484,255 941,734 1,007,546 (314,822) Total net position $ 3,118,713 $ 2,425,989 $ 692,724 A summary of the Read Foundation’s operations from governmental activities is as follows: 2017 Revenues $ Expenses Change in net position 4,642,451 $ 4,249,261 $ 393,190 Increase (Decrease) 2016 4,159,192 $ 3,507,331 $ 651,861 483,259 741,930 $ (258,671) Revenues Funding for the Read Foundation comes primarily through the per-pupil allocation from the Shelby County Schools’ Board of Education. An analysis of the changes between the current year and prior year governmental activity revenues are as follows: 2017 Shelby County Schools Federal and state awards and contributions Other charges for services Total $ 4,076,530 2016 $ 462,780 103,141 $ 4,642,451 Increase (Decrease) 3,480,342 $ 377,428 301,422 $ 4,159,192 596,188 85,352 (198,281) $ 483,259 9 Page 192 READ FOUNDATION Management’s Discussion and Analysis June 30, 2017 The variance for the Foundation’s per-pupil allocation is due to the increase in the Foundation’s enrollment, from an average of 446 students in the prior year to an average of 475 students in the current year plus an increase in the per-pupil allocation from $7,735 to $8,506 per-pupil. The Capital Outlay funds are based on student enrollment. Because of the increase in student enrollment in the current year, the Foundation received more capital outlay funding than in the previous year. The above revenue increases were offset by a drop in contributions due to a $250,000 contribution that was received in the prior year. Expenses An analysis of the changes between the current year and prior year governmental activities funds expenses are as follows: Salaries, wages, and benefits Instructional General and administrative Other instructional Food services General and administrative Debt service Total Increase (Decrease) 2017 2016 $ 2,141,182 301,136 221,323 939 1,541,166 43,515 1,855,937 199,258 91,121 1,345 1,340,005 19,665 $ 285,245 101,878 130,202 (406) 201,161 23,850 $ 4,249,261 3,507,331 $ 741,930 $ The increase in salaries, wages, and benefits and instructional expenses is due to more teachers and other instructional staff employed during the current year because of the increase in enrollment. The current year increase in general and administration expense is due primarily to the increase in occupancy, office expenses, and travel expenses. ECONOMIC FACTORS Significant economic factors affecting the Read Foundation are as follows:  The amount of State funding received per student for the year. This amount per student can fluctuate from year to year based on total funds available to the State and the number of students enrolled during the school year.  The continued funding of other programs and grants.  Inflationary pressure on utility rates, supplies, insurance, and other costs.  Local labor supply and demand, which can affect salary and wage rates. REQUEST FOR INFORMATION This financial report is designed to provide a general overview of the Foundation’s finances for all those with an interest in the Foundation. Questions concerning any of the information provided in this report may be addressed to the office of: Read Foundation 4450 South Mendenhall Road, Suite 1 Memphis, Tennessee 38141 Telephone (901) 367-7814 10 Page 193 Basic Combined Financial Statements Page 194 READ FOUNDATION Combined Statement of Net Position June 30, 2017 Governmental Activities Assets Cash Grants receivable Prepaid expenses Net pension asset Non-depreciable capital assets Depreciable capital assets, net of accumulated depreciation $ Total assets 4,811,985 Deferred outflows of resources 522,707 Liabilities Accounts payable Accrued liabilities Net pension liability Notes payable - due in one year Notes payable - due in more than one year 334,588 30,230 135,893 241,854 1,249,954 Total liabilities 1,992,519 Deferred inflows of resources 223,460 Net position Net investment in capital assets Unrestricted Total net position 722,238 14,504 58,637 32,997 2,564,714 1,418,895 2,491,801 626,912 $ 3,118,713 See independent auditor’s report and notes to the financial statement 12 Page 195 READ FOUNDATION Combined Statement of Activities For the Year Ended June 30, 2017 Total Instructional and Student Services $ 2,442,318 260,180 260,818 1,008,618 75,194 19,311 94,568 19,151 25,429 159 43,515 $ 2,141,182 250,385 968,273 67,013 2,896 94,568 23,619 159 - 4,249,261 3,548,095 657,651 43,515 Program revenues: Operating grants and contributions Capital grants and contributions Charges for services 257,780 205,000 103,141 257,780 205,000 103,141 - - Total program revenues 565,921 565,921 - - Governmental Activities Program expenses : Employee compensation Office Depreciation Occupancy Supplies Staff development Travel Advertising Other Student services Interest Total expenses Net program expenses General revenues: SCS per pupil allocations Change in net position $ (3,683,340) $ (2,982,174) $ 301,136 260,180 10,433 40,345 8,181 16,415 19,151 1,810 - $ (657,651) $ 43,515 (43,515) 4,076,530 393,190 Net position: Beginning of year GASB 68 adjustments 2,425,989 299,534 Beginning of year, as restated 2,725,523 Net position, end of year General and Administrative Debt Service $ 3,118,713 See independent auditor’s report and notes to the financial statement 13 Page 196 READ FOUNDATION Combined Balance Sheet – Governmental Funds June 30, 2017 General Fund ASSETS Cash Grants receivable Prepaid expenses Total assets $ 722,238 14,504 58,637 $ 795,379 $ 334,588 30,230 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable Accrued liabilities Total liabilities 364,818 Fund balance: Non-spendable Unassigned 58,637 371,924 Total fund balance Total liabilities and fund balance 430,561 $ 795,379 See independent auditor’s report and notes to the financial statement 14 Page 197 READ FOUNDATION Reconciliation of the Combined Balance Sheet to the Combined Statement of Net Position – Governmental Activities June 30, 2017 General Fund Total governmental fund balance $ 430,561 Amounts reported for governmental activities in the Statement of Net Position are different because: Net pension asset/liability is not carried on the General Fund Balance Sheet Long-term debt is not due and payable in the current period and, therefore, is not reported in the general fund (102,896) (1,491,808) Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 3,983,609 Deferred outflows/inflows related to pensions are not reported in the General Fund Balance Sheet 299,247 Net position of governmental activities $ 3,118,713 See independent auditor’s report and notes to the financial statement 15 Page 198 READ FOUNDATION Combined Statement of Revenues, Expenditures, and Changes in Fund Balance – Governmental Fund For the Year Ended June 30, 2017 General Fund Revenues: Shelby County Schools Federal awards and contributions Capital outlay Other charges for services $ Total revenues 4,642,451 Expenditures: Current: Salaries, wages and benefits: Instructional General and administration Instructional General and administration Capital outlay: Current expenditures Debt service: Principal payments on notes payable Interest 2,164,265 316,416 1,156,528 346,082 1,734,885 115,079 43,515 Total expenditures 5,876,770 Revenues over (under) expenditures (1,234,319) Other financial sources Issuance of note payable 581,600 Net change in fund balance (652,719) Fund Balance: Beginning of year Fund balance - end of year 4,076,530 257,780 205,000 103,141 1,083,280 $ 430,561 See independent auditor’s report and notes to the financial statement 16 Page 199 READ FOUNDATION Reconciliation of the Combined Statement of Revenues, Expenditures, and Changes in Fund Balance to the Combined Statement of Activities For the Year Ended June 30, 2017 General Fund Net change in fund balance - governmental funds $ (652,719) Amounts reported for governmental activities in the Statement of Activities are different because: GASB 68 negative pension expense is not reported in the Statement of Revenues, Expenditures and Changes in Fund Balance 38,363 Repayment of the principal of long-term debt consumes the current financial resources of governmental funds. These transactions do not have any effect on net assets 115,079 Issuance of long term debt provides the current financial resources to governmental funds. These transactions do not have an effect on net assets. (581,600) Capital outlays, reported as expenditures in governmental funds, are shown as capital assets on the Statement of Net Position 1,734,885 Depreciation expense on capital assets is included only in the governmental activities in the Statement of Activities Change in net position of governmental activities (260,818) $ 393,190 See independent auditor’s report and notes to the financial statement 17 Page 200 READ FOUNDATION Notes to the Financial Statements June 30, 2017 Note 1 - Summary of Significant Accounting Policies Reporting Entity The Read Foundation was formed as a Tennessee non-profit corporation. The Read Foundation (the “Foundation”), is the sponsor of Memphis School of Excellence and Memphis School of Excellence Elementary School. Pursuant to the provisions of the Tennessee Public Charter Schools Act of 2002 (the Act), T.C.A. Section 49-12-101, et seq., Memphis School of Excellence has been approved as a public charter school. Pursuant to the Act, public charter schools are part of the state’s public education program offering an alternative means within the public school system for accomplishing necessary outcomes of education. Memphis School of Excellence, through the Read Foundation, as sponsor, entered into a Charter School Agreement with the Board of Education of the Shelby County Schools to operate a charter school in Memphis, Tennessee, for the purpose of operating an alternative school to improve the learning of students with special needs as specified in the Federal Individuals with Disabilities Education Act. The School began classes in September 2010, with grades sixth through ninth. The initial Charter School Agreement expires in October 1, 2020, and is subject to renewal at the discretion of the Board of Education for the Shelby County Schools. Memphis School of Excellence Elementary School was formed pursuant to the provisions of the Tennessee Public Charter Schools Act of 2002 (the Act), T.C.A. Section 49-12-101, et seq. Memphis School of Excellence Elementary School, through the Read Foundation, as sponsor, entered into a Charter School Agreement with the Board of Education of the Shelby County Schools to operate a charter school in Memphis, Tennessee. Memphis School of Excellence Elementary School began classes in August 2017, with kindergarten through second grade. The initial Charter School Agreement expires on June 30, 2026, and is subject to renewal at the discretion of the Board of Education for the Shelby County Schools. Measurement focus, basis of accounting and presentation The Foundation, in accordance with the applicable Governmental Accounting Standards Board (GASB) statement, are considered a special-purpose governmental entity and is not a component unit of another governmental entity. Therefore, the financial statements have been prepared in the same manner as generalpurpose governments. The Foundation’s basic financial statements include both government-wide and fund financial statements. The combined government-wide financial statements (i.e., the combined statements of net position and the combined statements of activities) report information on all the non-fiduciary activities of the primary government. Governmental activities normally are supported by taxes and inter-governmental revenues and are paid to the Foundation through the Board of Education of the Shelby County Schools. The combined government-wide financial statements of the Foundation have been prepared on the accrual basis of accounting. Under the accrual basis, revenues are recognized when earned and expenses are recognized when incurred. The combined governmental fund financial statements are presented on the modified accrual basis of accounting. Revenues under the modified accrual basis are recognized when measurable and available. Revenues are considered available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Foundation considers revenues available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when the related liability is incurred, as under accrual accounting. Combined Government-wide Financial Statements In the combined government-wide statement of net position, activities are reported on a full accrual, economic resource basis, which recognizes all long-term assets and receivables as well as long-term debt and obligations. The combined statement of net position presents the financial condition of the Foundation at year-end. GASB regulations require the classification of net position into three components: invested in capital assets, net of related debt; restricted; and unrestricted. These classifications are defined as follows: Net investment in capital assets – This component of net position consists of capital assets, including restricted capital assets, net of accumulated depreciation and reduced by outstanding balances (if any) of bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction or improvement of those assets. 18 Page 201 READ FOUNDATION Notes to the Financial Statements June 30, 2017 If there are significant unspent related debt proceeds at year end, the portion of the debt attributable to the unspent proceeds is not included in the calculation of invested in capital assets, net of related debt. Rather, that portion of the debt is included in the same net position component as the unspent proceeds. Restricted – This component of net position consists of constraints placed on net position use through external constraints imposed by creditors (such as through debt covenants), contributors or laws or regulations of other governments or constraints imposed by law through constitutional provisions or enabling legislation. Unrestricted – This component of net position consists of net position that do not meet the definition of restricted or invested in capital assets, net of related debt. When both restricted and unrestricted assets are available for use, it is the Foundation’s policy to utilize restricted assets first, then unrestricted assets as needed. The government-wide statement of activities demonstrates the degree to which the direct expenses of a given function or program is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to students for lunches, school supplies, after school care, athletic programs, and other services; 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment; and 3) contributions that are generally unrestricted. The primary sources of the Foundation’s revenue is from the following: Shelby County Schools – the Foundation receives funds from Shelby County Schools (SCS) based on a perpupil allocation. The Foundation received $8,506 per-pupil and had an average of 475 students for the year ended June 30, 2017. The per-pupil allocation received for the year ended June 30, 2017, totaled $4,076,530 and is included in the Shelby County Schools revenue. Federal Awards – the Foundation is a recipient of Title I federal grant monies. The Foundation recognizes grant income when it is earned. The Foundation recognized $257,780 in federal grant revenue for the year ended June 30, 2017. The Foundation also received $205,000 from the State of Tennessee Capital Outlay Grant, which was disbursed through the Board of Education of the Shelby County Schools. Contributions – Contributions are recognized as support when they are pledged or received. The Foundation report gifts of cash and other assets as unrestricted support unless they are received with donor stipulations that limit the use of the donated assets. Governmental Fund Financial Statements The financial transactions of the Foundation are reported in individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, reserves, fund equity, revenues and expenditures. The Foundation reports the following major governmental fund: The General Fund is the primary operating fund of the Foundation and accounts for all financial resources of the general government, except those required to be accounted for in another fund, if any. The governmental funds’ focus is upon the determination of financial resources, their balance, sources and use, rather than upon net income. In accordance with the applicable GASB statement, the Foundation classifies governmental fund balances as: non-spendable, restricted, committed, assigned and unassigned based on the level of constraints on the fund balances. When an expenditure is incurred in which both restricted and unrestricted funds are available for use, it is the Foundation’s policy to spend restricted funds first, then unrestricted funds. When an expenditure has been incurred for purposes in which multiple categories of unrestricted funds are available, it is the Foundation’s policy to spend funds in the following order, committed, then assigned, and lastly unassigned funds. The classifications of fund balances are defined as follows: Non-spendable – This classification consists of fund balances that cannot be spent because they are either not in spendable form, for example, noncash amounts that are not expected to be converted to cash, or the funds are legally or contractually required to be maintained intact. 19 Page 202 READ FOUNDATION Notes to the Financial Statements June 30, 2017 Restricted – This classification consists of fund balances with external constraints on use imposed by creditors (such as through debt covenants), contributors or laws or regulations of other governments or constraints imposed by law through constitutional provisions or enabling legislation. Committed – This classification consists of fund balances that can only be used for specific purposes established by formal action of the Foundation’s Board of Directors, its highest level of decision making authority. Such commitments should include contractual obligations of fund assets. Fund balance commitments can only be removed by the same process of the same body employed to previously commit those amounts. Assigned – This classification consists of all fund balances that are not in the general fund or classified as non-spendable, restricted, or committed. In addition, general fund balances that the Foundation intends to use for specific purposes are classified as assigned. The Foundation gives the authority to assign amounts for specific purposes to the Schools’ office manager and personnel under the supervision of the schools’ office manager tasked with financial recording responsibilities. Unassigned – This classification consists of all fund balances in the general fund that are not reported as non-spendable, restricted, committed or assigned. Other Accounting Policies Cash and Cash Equivalents The Foundation consider deposits that can be redeemed on demand and investments that have original maturities of less than three months, when purchased, to be cash equivalents. Grants Receivable Grants Receivable represents amounts due from the State of Tennessee for reimbursement of expenses allocated to the Title I grant. An allowance for doubtful accounts is maintained based upon collection experience and a review of the collectability of specific outstanding receivables. Receivables are charged against the allowance when they are determined to be uncollectible by management. There is no allowance for doubtful accounts as of June 30, 2017, as management believes all amounts are collectible. Capital Assets Capital assets acquired by the Foundation are considered to be owned by the Foundation. However, State funding sources may maintain equitable interest in the capital assets purchased with grant monies as well as the right to determine the use of any proceeds from the sale of these assets. The State’s equitable interest is in capital assets with an acquisition cost which equals or exceeds $5,000 and an estimated useful life of more than one year. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized. Capital assets purchased are stated at cost, if purchased, or the estimated value on the date received, if donated. Depreciation is computed using the straight-line method over the estimated useful lives of the assets and over the term of the lease for leasehold improvements, ranging from 3 to 20 years. The Foundation follows the practice of capitalizing all expenditures for property and equipment items over $1,500. Accrued Compensated Absences No accrual of compensated absences is necessary for the Foundation’s faculty/staff because the summer months, during which classes are not in session, are considered employees’ vacation. The administrative employees of the Foundation follow the same schedule as the instructors of the charter schools; therefore, no compensated absences accrual for any of the employees of the Foundation is appropriate. 20 Page 203 READ FOUNDATION Notes to the Financial Statements June 30, 2017 Income Taxes The Foundation has been determined to be exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code (IRC) as evidenced by a letter of determination dated September 17, 2009. As an exempt corporation, the Foundation must operate in conformity with the IRC in order to maintain its tax-exempt status. The Foundation is also exempt from state income tax. As of June 30, 2017, the following tax years remain open due to the applicable tax authority’s ability to review and assess previously issued returns: federal – June 30, 2014, 2015, and 2016. Pensions (Teacher Legacy Pension Plan; Teacher Retirement Plan; Public Employee Retirement Plan) For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the above named plans in the Tennessee Consolidated Retirement System (TCRS) and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis as they are reported to the TCRS. For this purpose, benefits (including refunds of employee contributions) are recognized when due and payable in accordance with the benefits terms of the pension plans named above. Investments are reported at fair value. Deferred Outflows / Inflows of Resources As defined in GASB statement 63, in addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, Deferred Outflows of Resources, represents a consumption of net position that applies to a future period and so will not be recognized as an expense or expenditure until then. As defined in GASB statement 63, in addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, Deferred Inflows of Resources, represents an acquisition of net position that applies to a future period and so will not be recognized as revenue until then. Obligations In the government-wide financial statements, debt and other obligations are reported as liabilities in the applicable governmental activities and statement of net position. In the fund financial statements, any obligations secured by capital assets would not be reflected as a liability. Estimates and Uncertainties The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Concentrations Approximately 88% of the Foundation’s funding during the year ended June 30, 2017, was from the Board of Education of Shelby County Schools for their per-pupil allocation. Recent accounting pronouncements and restatement of net position The provisions of GASB Statement No. 68 were implemented during the year ended June 30, 2015. As a result of the continuation of implementing this new standard, the Foundation increased governmental activities net position by $299,534 as of June 30, 2016. Events occurring after reporting date The Foundation has evaluated subsequent events for potential recognition and disclosure through November 13, 2017, the date that the financial statements were approved for issuance. 21 Page 204 READ FOUNDATION Notes to the Financial Statements June 30, 2017 Note 2 – Deposits with Financial Institutions At June 30, 2017, the Foundation’s carrying amount of deposits was $722,238 and the bank balances totaled $742,629. Accounts at the institution are insured by the Federal Deposit Insurance Company up to an aggregate of $250,000, therefore the Foundation maintains its bank accounts at a banking institution that is included as a Collateral Pool Participant, which provides collateral coverage for public funds deposits in excess of $250,000. Note 3 – Capital Assets Capital asset activity for the year ended June 30, 2017, was as follows: Non-depreciable capital assets: Construction in progress Balance June 30, 2016 Additions $ 1,012,063 $ 1,552,651 2,404,782 315,594 Depreciable capital assets: Leasehold improvements Furniture and equipment Total depreciable capital assets Less accumulated depreciation: Leasehold improvements Furniture and equipment Total accumulated depreciation Total depreciable capital assets, net Total capital assets, net Balance June 30, 2017 Disposals - $ 2,564,714 162,550 19,684 - 2,567,332 335,278 2,720,376 182,234 - 2,902,610 (1,027,426) (195,471) (216,653) (44,165) - (1,244,079) (239,636) (1,222,897) (260,818) - (1,483,715) 1,497,479 (78,584) - 1,418,895 - $ 3,983,609 $ 2,509,542 $ 1,474,067 $ $ Depreciation expense was $260,818 for the year ended June 30, 2017. The allocation of this expense is as follows: Governmental Activities: Instructional General and Administrative $ 250,385 10,433 Total depreciation expense - governmental activities $ 260,818 Note 4 – Operating Leases The Foundation leases office and instructional facilities under a lease agreement which will expire July 2020. Rent expenses under this lease totaled $521,337 for the year ended June 30, 2017. The Foundation also leases certain equipment which will expire between June 2018 and June 2020. Rent expense under these leases totaled $20,880 for the year ended June 30, 2017. 22 Page 205 READ FOUNDATION Notes to the Financial Statements June 30, 2017 Future minimum lease payments required under these leases for the years ending June 30 are as follows: 2018 2019 2020 2021 $ 557,991 567,101 577,863 47,685 $ 1,750,640 Note 5 – Notes payable The Foundation has a $153,771 note payable to a construction company with $50,000 due July 3, 2017, and the remaining balance due on December 30, 2017. The note bears interest at 4% per annum, matures December 30, 2017, and is collateralized by certain equipment. The Foundation also has a $1,680,000 non-revolving line of credit with a financial institution for construction. The line bears interest at 4.66%, is secured by real estate, and matures on June 21, 2020. At June 30, 2017, the amount outstanding under this non-revolving line of credit was $1,261,768. The line of credit is payable in monthly principal and interest installments of $10,774. The Foundation also has a $76,269 note payable to a financial institution. The note bears interest at 4.55%, is secured by certain equipment, is payable in monthly principal and interest installments of $1,493, and matures on March 8, 2022. Beginning Balance Increases Notes payable transactions for the year $ 1,025,287 $ Decreases 581,600 $ Ending Balance (115,079) $ 1,491,808 Due Within One Year $ 241,854 Principal and interest payments required to maturity for the long-term debt agreements mentioned above for the years ending June 30 are as follows: Principal 2018 2019 2020 2021 2022 $ Interest 241,854 90,951 1,128,849 16,901 13,253 $ 61,017 56,251 51,938 1,012 245 $ 1,491,808 $ 170,463 Total $ 302,871 147,202 1,180,787 17,913 13,498 $ 1,662,271 Note 6 – Commitments On July 1, 2013, the Foundation entered into an educational professional services agreement with Harmony Public School, a Texas-based non-profit organization, to provide management and consulting services, training and providing ongoing professional development to the schools in all areas within the charter school system. The contract is a three year agreement which expired June 30, 2016. The Foundation agreed to pay Harmony Public School an annual fee of $15,000 per year. As of June 30, 2016, the contract has been extended an additional three years which will expire on June 30, 2019, with all of the above terms and annual fee remaining the same. On December 31, 2014, the Foundation entered into an educational professional services agreement with Teach for America, a Connecticut-based non-profit organization for recruiting, selecting, training and providing ongoing professional development to teachers within the charter school system. The Foundation agrees to hire a minimum of five (5) teachers from the Teach for America program for the academic years ending 2016, 2017, and 2018 and pay Teach for America an annual fee of $5,000 per teacher for each year the teachers are employed. The Foundation paid $50,000 under this agreement for the year ended June 30, 2017. 23 Page 206 READ FOUNDATION Notes to the Financial Statements June 30, 2017 On October 11, 2016, the Foundation signed a contract with Ybos & Sons Construction, Inc. for construction on the building purchased at 4921 Winchester Road. The total amount of the contract is $1,585,656. As of June 30, 2017, the total construction completed and stored to date was $1,433,347. Note 7 - Teacher Legacy Pension Plan General Information about the Pension Plan Plan description. Teachers with membership in the Tennessee Consolidated Retirement System (TCRS) before July 1, 2014, of the Foundation are provided with pensions through the Teacher Legacy Pension Plan, a cost sharing multiple-employer pension plan administered by the TCRS. The Teacher Legacy Pension Plan closed to new membership on June 30, 2014, but will continue providing benefits to existing members and retirees. Beginning July 1, 2014, the Teacher Retirement Plan became effective for teachers employed by the Foundation after June 30, 2014. The Teacher Retirement Plan is a separate cost-sharing, multiple-employer defined benefit plan. The TCRS was created by state statute under Tennessee Code Annotated Title 8, Chapters 3437. The TCRS Board of Trustees is responsible for the proper operation and administration of all employer pension plans in the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publically available financial report that can be obtained at www.treasury.tn.gov/tcrs. Benefits provided. Tennessee Code Annotated Title 8, Chapters 34-37 establishes the benefit terms and can be amended only by the Tennessee General Assembly. Members of the Teacher Legacy Pension Plan are eligible to retire with an unreduced benefit at age 60 with 5 years of service credit or after 30 years of service credit regardless of age. Benefits are determined by a formula using the member’s highest five consecutive year average compensation and the member’s years of service credit. A reduced early retirement benefit is available at age 55 and vested. Members are vested with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced 10 percent and include projected service credits. A variety of death benefits are available under various eligibility criteria. Member and beneficiary annuitants are entitled to automatic cost of living adjustments (COLAs) after retirement. A COLA is granted each July for annuitants retired prior to the 2nd of July of the previous year. The COLA is based on the change in the consumer price index (CPI) during the prior calendar year, capped at 3 percent, and applied to the current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A one percent COLA is granted if the CPI change is between one-half percent and one percent. A member who leaves employment may withdraw their employee contributions, plus any accumulated interest. Under the Teacher Legacy Pension Plan, benefit terms and conditions, including COLAs, can be adjusted on a prospective basis. Moreover, there are defined cost controls and unfunded liability controls that provide for the adjustment of benefit terms and conditions on an automatic basis. Contributions. Contributions for teachers are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly. Teachers contribute 5 percent of salary. The Foundation makes employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation. By law, employer contributions for the Teacher Legacy Pension Plan are required to be paid. TCRS may intercept the state shared taxes of the sponsoring governmental entity of the Foundation if the required employer contributions are not remitted. Employer contributions by the FoundationRead Foundation for the year ended June 30, 2017, to the Teacher Legacy Pension Plan were $69,878 which is 9.04 percent of covered payroll. The employer rate, when combined with member contributions, is expected to finance the costs of benefits earned by members during the year, the cost of administration, as well as an amortized portion of any unfunded liability. 24 Page 207 READ FOUNDATION Notes to the Financial Statements June 30, 2017 Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Pension liabilities (assets). At June 30, 2017, the Foundation reported a liability of $135,893 for its proportionate share of net pension liability. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial value as of that date. The Foundation’s proportion of the net pension liability was based on the Foudnation’s share of contributions to the pension plan relative to the contributions of all Local Education Agencies (LEAs). At the measurement date of June 30, 2016, the Foundation’s proportion was 0.021745 percent. The proportion measured as of June 30, 2015, was 0.027161 percent. Pension expense. For the year ended June 30, 2017, the Foundation recognized negative pension expense of $65,885. Deferred outflows of resources and deferred inflows of resources. For the year ended June 30, 2017, the Foundation reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ 5,719 $ 164,521 Net difference between projected and actual earnings on pension plan investments 151,726 - Changes in proportion of Net Pension Liability (Asset) 232,348 41,082 69,878 - Read Foundation's contributions subsequent to the measurement date of June 30, 2016 Total $ 459,671 $ 205,603 The Foundation’s employer contributions of $69,878, reported as pension related deferred outflows of resources, subsequent to the measurement date, will be recognized as an increase in net pension liability (asset) in the year ended June 30, 2018. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended June 30: 2018 2019 2020 2021 2022 Thereafter $ 24,443 24,443 97,226 57,016 (18,937) - In the table above, positive amounts will increase pension expense, while negative amounts will decrease pension expense. 25 Page 208 READ FOUNDATION Notes to the Financial Statements June 30, 2017 Actuarial assumptions. The total pension liability in the June 30, 2016, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Salary increases Investment rate of return Cost-of Living Adjustment 3.0 percent Graded salary ranges from 8.97 to 3.71 percent based on age, including inflation, averaging 4.25 percent 7.5 percent, net of pension plan investment expenses, including inflation 2.5 percent Mortality rates are customized based on the June 30, 2012, actuarial experience study and included some adjustment for expected future improvement in life expectancy. The actuarial assumptions used in the June 30, 2016, actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2008 through June 30, 2012. The demographic assumptions were adjusted to more closely reflect actual and expected future experience. The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees in conjunction with the June 30, 2012 actuarial experience study by considering the following three techniques: (1) the 25-year historical return of the TCRS at June 30, 2012, (2) the historical market returns of asset classes from 1926 to 2012 using the TCRS investment policy asset allocation, and (3) capital market projections that were utilized as a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. Four sources of capital market projections were blended and utilized in the third technique. The blended capital market projection established the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding inflation of 3 percent. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Asset Class U.S. equity Developed market international equity Emerging market international equity Private equity and strategic lending U.S. fixed income Real estate Short-term investments Long-Term Expected Real Rate of Return 6.46% 6.26% 6.40% 4.61% 0.98% 4.73% 0.00% Target Allocation 33% 17% 5% 8% 29% 7% 1% 100% The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees as 7.5 percent based on a blending of the three factors described above. Discount rate. The discount rate used to measure the total pension liability was 7.5 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current rate and that contributions from all LEAs will be made at the actuarially determined contribution (ADC) rate pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 26 Page 209 READ FOUNDATION Notes to the Financial Statements June 30, 2017 Sensitivity of the proportionate share of net pension liability (asset) to changes in the discount rate. The following presents the Foundation’s proportionate share of the net pension liability (asset) calculated using the discount rate of 7.5 percent, as well as what the Foundation’s proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.5 percent) or 1-percentagepoint higher (8.5 percent) than the current rate: 1% Decrease (6.5%) Read Foundation's proportionate share of the net pension liability (asset) $ 746,211 Current Discount Rate (7.5%) $ 135,893 1% Increase (8.5%) $ (369,667) Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position is available in a separately issued TCRS financial report. Payable to the Pension Plan At June 30, 2017, the Foundation reported a payable of $20,204 for the outstanding amount of contributions to the pension plan required at the year ended June 30, 2017. Note 8 – Non-Teacher Retirement Plan General Information about the Pension Plan Plan description. Employees of the Foundation are provided a defined benefit pension plan through the Public Employee Retirement Plan, an agent multiple-employer pension plan administered by the TCRS. The TCRS was created by state statute under Tennessee Code Annotated Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publically available financial report that can be obtained at www.treasury.tn.gov/tcrs. Benefits provided. Tennessee Code Annotated Title 8, Chapters 34-37 establishes the benefit terms and can be amended only by the Tennessee General Assembly. The chief legislative body may adopt the benefit terms permitted by statute. Members are eligible to retire with an unreduced benefit at age 60 with 5 years of service credit or after 30 years of service credit regardless of age. Benefits are determined by a formula using the member’s highest five consecutive year average compensation and the member’s years of service credit. Reduced benefits for early retirement are available at age 55 and vested. Members vest with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced 10 percent and include projected service credits. A variety of death benefits are available under various eligibility criteria. Member and beneficiary annuitants are entitled to automatic cost of living adjustments (COLAs) after retirement. nd A COLA is granted each July for annuitants retired prior to the 2 of July of the previous year. The COLA is based on the change in the consumer price index (CPI) during the prior calendar year, capped at 3 percent, and applied to the current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A one percent COLA is granted if the CPI change is between one-half percent and one percent. A member who leaves employment may withdraw their employee contributions, plus any accumulated interest. 27 Page 210 READ FOUNDATION Notes to the Financial Statements June 30, 2017 Contributions. Contributions for employees are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly. Employees contribute 5 percent of salary. The Foundation makes employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation. For the year ended June 30, 2017, the employer contributions for the Foundation were $7,439 based on a rate of 9.27% percent of covered payroll. By law, employer contributions are required to be paid. The TCRS may intercept the Foundation’s state shared taxes if required employer contributions are not remitted. The employer’s ADC and member contributions are expected to finance the costs of benefits earned by members during the year, the cost of administration, as well as an amortized portion of any unfunded liability. Net Pension Liability (Asset) The Foundation’s net pension liability (asset) was measured as of June 30, 2016, and the total pension liability used to calculate net pension liability (asset) was determined by an actuarial valuation as of that date. Actuarial assumptions. The total pension liability in the June 30, 2016, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Salary increases Investment rate of return Cost-of Living Adjustment 3.0 percent Graded salary ranges from 8.97 to 3.71 percent based on age, including inflation, averaging 4.25 percent 7.5 percent, net of pension plan investment expenses, including inflation 2.5 percent Mortality rates were based on actual experience from the June 30, 2012, actuarial experience study adjusted for some of the expected future improvement in life expectancy. The actuarial assumptions used in the June 30, 2016, actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2008 through June 30, 2012. The demographic assumptions were adjusted to more closely reflect actual and expected future experience. The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees in conjunction with the June 30, 2012 actuarial experience study by considering the following three techniques: (1) the 25-year historical return of the TCRS at June 30, 2012, (2) the historical market returns of asset classes from 1926 to 2012 using the TCRS investment policy asset allocation, and (3) capital market projections that were utilized as a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. Four sources of capital market projections were blended and utilized in the third technique. The blended capital market projection established the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding inflation of 3 percent. 28 Page 211 READ FOUNDATION Notes to the Financial Statements June 30, 2017 The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Asset Class U.S. equity Developed market international equity Emerging market international equity Private equity and strategic lending U.S. fixed income Real estate Short-term investments Long-Term Expected Real Rate of Return Target Allocation 6.46% 6.26% 6.40% 4.61% 0.98% 4.73% 0.00% 33% 17% 5% 8% 29% 7% 1% 100% The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees as 7.5 percent based on a blending of the three factors described above. Discount rate. The discount rate used to measure the total pension liability was 7.5 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current rate and that contributions from all LEAs will be made at the ADC rate pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 29 Page 212 READ FOUNDATION Notes to the Financial Statements June 30, 2017 Changes in the Net Pension Liability (Asset) Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (Asset) (a) (b) (a) - (b) Balance at 6/30/15 $ 269,202 Changes for the year: Service cost Interest Differences between expected and actual experience Contributions - employer Contributions - employees Net investment income Benefit payments, including refunds of employee contributions Administrative expense Other changes Net changes Balance at 6/30/16 $ 284,814 5,620 19,995 $ $ - (15,612) 5,620 19,995 (7,217) - 5,405 2,917 7,455 (7,217) (5,405) (2,917) (7,455) (16,445) 1,953 (16,445) (115) 386 (397) 115 (386) 2,350 271,155 $ 284,417 $ (13,262) Sensitivity of the net pension liability (asset) to changes in the discount rate. The following presents the net pension liability (asset) of the Foundation calculated using the discount rate of 7.5 percent, as well as what the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.5 percent) or 1-percentage-point higher (8.5 percent) than the current rate: 1% Decrease (6.5%) Read Foundation's proportionate share of the net pension liability (asset) $ 18,644 Current Discount Rate (7.5%) $ (13,262) $ 1% Increase (8.5%) (39,976) 30 Page 213 READ FOUNDATION Notes to the Financial Statements June 30, 2017 Negative Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Negative pension expense. For the year ended June 30, 2017, the Foundation recognized negative pension expense of $2,161. Deferred outflows of resources and deferred inflows of resources. For the year ended June 30, 2017, the Foundation reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ - $ 14,061 Net difference between projected and actual earnings on pension plan investments 9,288 - Contributions subsequent to the measurement date of June 30, 2016 7,439 - Total $ 16,727 $ 14,061 The amount shown above for "Contributions subsequent to the measurement date of June 30, 2016," will be recognized as a reduction (increase) to net pension liability (asset) in the following measurement period. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended June 30: 2018 2019 2020 2021 2022 Thereafter $ (3,523) (3,523) 994 1,279 - In the table above, positive amounts will increase pension expense, while negative amounts will decrease pension expense. Payable to the Pension Plan At June 30, 2017, the Foundation reported a payable of $0 for the outstanding amount of contributions to the pension plan required at the year ended June 30, 2017. 31 Page 214 READ FOUNDATION Notes to the Financial Statements June 30, 2017 Note 9 – Teacher Retirement Plan (After June 30, 2014) General Information about the Pension Plan Plan description. Teachers with membership in the Tennessee Consolidated Retirement System (TCRS) before July 1, 2014, of the Foundation are provided with pensions through the Teacher Retirement Plan, a cost sharing multiple-employer pension plan administered by the TCRS. The Teacher Legacy Pension Plan closed to new membership on June 30, 2014, but will continue providing benefits to members and retirees. Beginning July 1, 2014, the Teacher Retirement Plan became effective for teachers employed by the Foundation after June 30, 2014. T he Teacher Retirement Plan is a separate cost sharing, multiple-employer defined benefit plan. The TCRS was created by state statute under Tennessee Code Annotated Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of all employer pension plans in the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publically available financial report that can be obtained at www.treasury.tn.gov/tcrs. Benefits provided. Tennessee Code Annotated Title 8, Chapters 34-37 establishes the benefit terms and can be amended only by the Tennessee General Assembly. Members of the Teacher Retirement Plan are eligible to retire with an unreduced benefit at age 65 with 5 years of service credit or pursuant to the rule of 90 in which the member’s age and service credit total 90. Benefits are determined by a formula using the member’s highest five consecutive year average compensation and the member’s years of service credit. A reduced early retirement benefit is available at age 60 and vested or pursuant to the rule of 80. Members are vested with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced 10 percent and include projected service credits. A variety of death benefits are available under various eligibility criteria. Member and beneficiary annuitants are entitled to automatic cost of living adjustments (COLAs) after retirement. A COLA is granted each July for annuitants retired prior to the 2nd of July of the previous year. The COLA is based on the change in the consumer price index (CPI) during the prior calendar year, capped at 3 percent, and applied to the current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A one percent COLA is granted if the CPI change is between one-half percent and one percent. A member who leaves employment may withdraw their employee contributions, plus any accumulated interest. Under the Teacher Retirement Plan, benefit terms and conditions, including COLAs, can be adjusted on a prospective basis. Moreover, there are defined cost controls and unfunded liability controls that provide for the adjustment of benefit terms and conditions on an automatic basis. Contributions. Contributions for teachers are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly or by automatic cost controls set out in law. Teachers contribute 5 percent of salary. The Foundation makes employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation. Per the statutory provisions governing the TCRS, the employer contribution rate cannot be less than 4 percent, except for in years when the maximum funded level, approved by the TCRS Board of Trustees, is reached. By law, employer contributions for the Teacher Retirement Plan are required to be paid. TCRS may intercept the state shared taxes of the sponsoring governmental entity of the Foundation if the required employer contributions are not remitted. Employer contributions by the Foundation for the year ended June 30, 2017, to the Teacher Retirement Plan were $41,166 which is 4 percent of covered payroll. The employer rate, when combined with member contributions, is expected to finance the costs of benefits earned by members during the year, the cost of administration, as well as an amortized portion of any unfunded liability. 32 Page 215 READ FOUNDATION Notes to the Financial Statements June 30, 2017 Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Pension liabilities (assets). At June 30, 2017, the Foundation reported an asset of $19,735 for its proportionate share of net pension asset. The net pension asset was measured as of June 30, 2016, and the total pension asset used to calculate the net pension asset was determined by an actuarial value as of that date. The Foundation’s proportion of the net pension asset was based on The Foundation’s share of contributions to the pension plan relative to the contributions of all participating LEAs. At the measurement date of June 30, 2016, the Foundation’s proportion was 0.189570 percent. The proportion measured as of June 30, 2015, was 0.135356 percent. Pension expense. For the year ended June 30, 2017, the Foundation recognized pension expense of $16,396. Deferred outflows of resources and deferred inflows of resources. For the year ended June 30, 2017, the Foundation reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ 1,912 Net difference between projected and actual earnings on pension plan investments Changes in proportion of Net Pension Liability (Asset) Read Foundation's contributions subsequent to the measurement date of June 30, 2016 $ $ 2,275 3,231 - - 1,521 41,166 - 46,309 $ 3,796 Total The Foundation’s employer contributions of $41,166, reported as pension related deferred outflows of resources, subsequent to the measurement date, will be recognized as an increase of net pension liability (assets) in the year ended June 30, 2018. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended June 30: 2018 2019 2020 2021 2022 Thereafter $ 672 672 672 518 (174) (1,013) In the table above, positive amounts will increase pension expense, while negative amounts will decrease pension expense. 33 Page 216 READ FOUNDATION Notes to the Financial Statements June 30, 2017 Actuarial assumptions. The total pension liability in the June 30, 2016, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Salary increases Investment rate of return Cost-of Living Adjustment 3.0 percent Graded salary ranges from 8.97 to 3.71 percent based on age, including inflation, averaging 4.25 percent 7.5 percent, net of pension plan investment expenses, including inflation 2.5 percent Mortality rates are customized based on the June 30, 2012, actuarial experience study and included some adjustment for expected future improvement in life expectancy. The actuarial assumptions used in the June 30, 2015, actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2008 through June 30, 2012. The demographic assumptions were adjusted to more closely reflect actual and expected future experience. The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees in conjunction with the June 30, 2012 actuarial experience study by considering the following three techniques: (1) the 25-year historical return of the TCRS at June 30, 2012, (2) the historical market returns of asset classes from 1926 to 2012 using the TCRS investment policy asset allocation, and (3) capital market projections that were utilized as a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. Four sources of capital market projections were blended and utilized in the third technique. The blended capital market projection established the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding inflation of 3 percent. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Asset Class U.S. equity Developed market international equity Emerging market international equity Private equity and strategic lending U.S. fixed income Real estate Short-term investments Long-Term Expected Real Rate of Return 6.46% 6.26% 6.40% 4.61% 0.98% 4.73% 0.00% Target Allocation 33% 17% 5% 8% 29% 7% 1% 100% The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees as 7.5 percent based on a blending of the three factors described above. Discount rate. The discount rate used to measure the total pension liability was 7.5 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current rate and that contributions from all LEAs will be made at the actuarially determined contribution rate pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 34 Page 217 READ FOUNDATION Notes to the Financial Statements June 30, 2017 Sensitivity of the proportionate share of net pension liability (asset) to changes in the discount rate. The following presents the Foundation’s proportionate share of the net pension liability (asset) calculated using the discount rate of 7.5 percent, as well as what the Foundation’s proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.5 percent) or 1-percentagepoint higher (8.5 percent) than the current rate: 1% Decrease (6.5%) Read Foundation's proportionate share of the net pension liability (asset) $ 9,319 Current Discount Rate (7.5%) $ 1% Increase (8.5%) (19,735) $ (41,142) Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position is available in a separately issued TCRS financial report. Payable to the Pension Plan At June 30, 2017, the Foundation reported a payable of $188 for the outstanding amount of contributions to the pension plan required at the year ended June 30, 2017. 401(k) Plan The Teacher Retirement Plan provides a combination of a defined benefit plan and a defined contribution plan. The defined benefit portion of the Teacher Retirement Plan is managed by TCRS. The defined contribution assets are deposited into the State’s 401(k) plan where the employees manage the investments within the 401(k) plan. Contributions are made on a tax-deferred basis. Employer contributions by the Foundation for the year ended June 30, 2017, to the 401(k) plan were $51,458 which is 5 percent of covered payroll. Note 10 – Reconciliation of Net Pension Assets and Liabilities at June 30, 2017 Net Pension Asset Deferred Outflows of Resources Net Pension Liability Deferred Inflows of Resources - $ 459,671 $ 135,893 $ 205,603 Non-Teacher Retirement Plan 13,262 16,727 - 14,061 Teacher Retirement Plan (After June 30, 2014) 19,735 46,309 - 3,796 32,997 $ 522,707 $ 135,893 $ 223,460 Teacher Legacy Pension Plan Total assets and liabilities $ $ Note 11 – Risk Management The Foundation is exposed to the normal risks of loss related to torts; theft or damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Foundation’s policy is to minimize these risks through the purchase of commercial insurance. Settled claims have not exceeded the commercial insurance coverage in the past three years. 35 Page 218 Required Supplementary Information Page 219 READ FOUNDATION Required Supplementary Information June 30, 2017 Schedule of Proportionate Share of the Net Pension Liability (Asset)* Teacher Legacy Pension Plan of TCRS Last Fiscal Year Ended June 30 2016 Memphis School of Excellence's proportion of the net pension liability (asset) 0.021745% Memphis School of Excellence's proportionate share of the net pension liability (asset) $ 135,893 Memphis School of Excellence's covered payroll $ 784,941 Memphis School of Excellence's proportionate share of the net pension liability (asset) as a percentage of its covered payroll 17.31% Plan fiduciary net position as a percentage of the total pension liability 97.14% * GASB 68 requires a 10-year schedule for this data to be presented starting with the implementation of GASB 68. The information in this schedule is not required to be presented retroactively prior to the implementation date. Please refer to previously supplied data from the TCRS GASB website for prior year's data, if needed. See independent auditor’s report 37 Page 220 READ FOUNDATION Required Supplementary Information June 30, 2017 Schedule of Contributions Teacher Legacy Pension Plan of TCRS Last Fiscal Year Ended June 30 2016 Contractually required $ Contribution in relation to the contractually required contribution 2017 70,959 $ 70,959 69,878 69,878 Contribution deficiency (excess) $ - $ - Memphis School of Excellence's covered payroll $ 784,941 $ 772,987 Contributions as a percentage of Memphis School of Excellence's covered payroll 9.04% 9.04% * GASB 68 requires a 10-year schedule for this data to be presented starting with the implementation of GASB 68. The information in this schedule is not required to be presented retroactively prior to the implementation date. Please refer to previously supplied data from the TCRS GASB website for prior year's data, if needed. See independent auditor’s report 38 Page 221 READ FOUNDATION Required Supplementary Information June 30, 2017 Schedule of Changes in Net Pension Liability (Asset) and Related Ratios* Based on Participation in the Public Employee Pension Plan of TCRS – Non Teacher Last Fiscal Year Ending June 30 2016 Total pension liability Service cost Interest Changes in benefit terms Differences between actual & expected experience Change of assumptions Benefit payments, including refunds of employee contributions Net change in total pension liability Total pension liability - beginning Total pension liability - ending (a) Plan fiduciary net position Contributions - employer Contributions - employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Other Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b) Net Pension Liability (Asset) - ending (a) - (b) Plan fiduciary net position as a percentage of total pension liability Covered payroll Net pension liability (asset) as a percentage of covered-employee payrol $ 5,620 19,995 (7,217) (16,445) 1,953 269,202 271,155 $ 5,405 2,917 7,455 (16,445) (115) 386 (397) 284,814 284,417 $ (13,262) 104.89% 58,527 -22.66% * GASB 68 requires a 10-year schedule for this data to be presented starting with the implementation of GASB 68. The information in this schedule is not required to be presented retroactively prior to the implementation date. Please refer to previously supplied data from the TCRS GASB website for prior year's data, if needed. See independent auditor’s report 39 Page 222 READ FOUNDATION Required Supplementary Information June 30, 2017 Schedule of Contributions* Based Upon Participation in the Public Employee Pension Plan of TCRS – Non Teacher Last Fiscal Year Ending June 30 2016 Actuarially required contribution $ Contributions in relation to the actuarially determined contribution 2017 5,405 $ 5,405 7,439 7,439 Contribution deficiency (excess) $ - $ - Covered payroll $ 58,527 $ 80,248 Contributions as a percentage of covered payroll 9.24% 9.27% * GASB 68 requires a 10-year schedule for this data to be presented starting with the implementation of GASB 68. The information in this schedule is not required to be presented retroactively prior to the implementation date. Please refer to previously supplied data from the TCRS GASB website for prior year's data, if needed. Notes to Schedule Valuation date: Actuarially determined contribution rates for 2017 were calculated based on June 30, 2015, actuarial valuation. Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method Remaining amortization period Asset valuation Inflation Salary increases Investment Rate of Return Retirement age Mortality Cost of Living Adjustments Frozen initial liability Level dollar, closed (not to exceed 20 years) Varies by Year 10-year smoothed within a 20 percent corridor to market value 3.0 percent Graded salary ranges from 8.97 to 3.71 percent based on age, including inflation 7.5 percent, net of investment expense, including inflation Pattern of retirement determined by experience study Customized table based on actual experience including an adjustment for some anticipated improvement 2.5 percent See independent auditor’s report 40 Page 223 READ FOUNDATION Required Supplementary Information June 30, 2017 Schedule of Proportionate Share of the Net Pension Liability (Asset)* Teacher Retirement Plan of TCRS Last Fiscal Year Ended June 30 2016 Memphis School of Excellence's proportion of the net pension liability (asset) 0.189570% Memphis School of Excellence's proportionate share of the net pension liability (asset) $ Memphis School of Excellence's covered payroll $ 834,118 Memphis School of Excellence's proportionate share of the net pension liability (asset) as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total pension liability (19,735) -2.37% 121.88% * GASB 68 requires a 10-year schedule for this data to be presented starting with the implementation of GASB 68. The information in this schedule is not required to be presented retroactively prior to the implementation date. Please refer to previously supplied data from the TCRS GASB website for prior year's data, if needed. See independent auditor’s report 41 Page 224 READ FOUNDATION Required Supplementary Information June 30, 2017 Schedule of Contributions Teacher Retirement Plan of TCRS Last Fiscal Year Ended June 30 2016 Contractually required contribution $ Contribution in relation to the contractually required contribution 20,880 2017 $ 33,365 41,166 Contribution deficiency (excess) $ (12,485) $ Memphis School of Excellence's covered payroll $ 834,118 Contributions as a percentage of Memphis School of Excellence's covered payroll 4.00% 41,166 - $ 1,029,150 4.00% * GASB 68 requires a 10-year schedule for this data to be presented starting with the implementation of GASB 68. The information in this schedule is not required to be presented retroactively prior to the implementation date. Please refer to previously supplied data from the TCRS GASB website for prior year's data, if needed. See independent auditor’s report 42 Page 225 Other Supplementary Information Page 226 READ FOUNDATION Combining Schedule of Assets, Liabilities, and Fund Balances – Governmental Funds June 30, 2017 Governmental Activities ASSETS Cash Grants receivable Prepaid expenses TOTAL ASSETS LIABILITIES Accounts payable Accrued liabilities TOTAL LIABILITIES Memphis School of Excellence Memphis School of Excellence Elementary School $ 582,082 14,504 58,637 $ 140,156 - $ - $ 722,238 14,504 58,637 $ 655,223 $ 140,156 $ - $ 795,379 $ 334,588 30,230 $ $ - $ 334,588 30,230 - Elimination TOTAL 364,818 - - 364,818 58,637 231,768 140,156 - 58,637 371,924 TOTAL FUND BALANCE 290,405 140,156 - 430,561 TOTAL LIABILITIES AND FUND BALANCE $ 655,223 $ 140,156 - $ 795,379 FUND BALANCE Non-spendable Unassigned $ See independent auditor’s report 44 Page 227 READ FOUNDATION Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance – Governmental Funds For the Year Ended June 30, 2017 General Funds Memphis School of Excellence Memphis Elementary School of School Excellence REVENUES: Shelby County Schools Federal awards and contributions Capital outlay Other charges for services $ 4,076,530 257,780 205,000 116,391 TOTAL REVENUES EXPENDITURES: Current: Salaries, wages, and benefits: Instructional General and administrative Instructional General and administrative Capital Outlay: Current expenditures Debt Service: Principal payments on long-term debt Interest TOTAL EXPENDITURES REVENUE OVER (UNDER) EXPENDITURES OTHER FINANCIAL SOURCES Issuance of long-term debt FUND BALANCE, End of year - $ 4,076,530 257,780 205,000 (13,250) 103,141 (13,250) 4,642,451 2,164,265 272,076 1,138,122 303,268 44,340 18,406 56,064 (13,250) 2,164,265 316,416 1,156,528 346,082 1,734,885 - - 1,734,885 115,079 43,515 - - 115,079 43,515 5,771,210 118,810 (1,115,509) (118,810) 1,083,280 $ $ - (533,909) FUND BALANCE, Beginning of year - TOTAL 4,655,701 581,600 NET CHANGE IN FUND BALANCE $ Elimination 549,371 (118,810) $ (118,810) $ (13,250) - 5,876,770 (1,234,319) - 581,600 - (652,719) - 1,083,280 - $ 430,561 See independent auditor’s report 45 Page 228 READ FOUNDATION Schedule of Combined Expenditures of Federal Awards and State Financial Assistance Federal Grantor / Pass-through Grantor / Program Title For the Year Ended June 30, 2017 CFDA Number Contract Number 84.010 N/A Tennessee Department of Education / Board of Education of the Shelby County Schools / ADA Per-Pupil Funding Allocation N/A N/A 4,076,530 Tennessee Department of Education / Board of Education of the Shelby County Schools / Capital Outlay Funding N/A N/A 205,000 Expenditures Federal Awards U.S. Department of Education / Board of Education of the Shelby County Schools / Title I Grants to Local Educational Agencies $ 257,780 State Financial Assistance Total State Financial Assistance Total Federal Awards and State Financial Assistance 4,281,530 $ 4,539,310 Note 1 - Basis of Presentation The Schedule of Expenditures of Federal Awards and State Financial Assistance includes the federal and state grant activity of the Read Foundation and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the State of Tennessee Department of Audit, Audit Manual. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. See independent auditor’s report 46 Page 229 Non-Financial Information Page 230 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Directors Read Foundation Memphis, Tennessee We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and the major fund of the Read Foundation as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the Read Foundation’s basic financial statements, and have issued our report thereon dated November 13, 2017. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Read Foundation’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Read Foundation’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Read Foundation’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Read Foundation’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. CANNON WRIGHT BLOUNT PLLC PHONE 901.685.7500 756 RIDGE LAKE BLVD FAX 901.685.7569 MEMPHIS TN 38120 WWW.CANNONWRIGHTBLOUNT.COM Page 231 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Memphis, Tennessee November 13, 2017 49 Page 232 READ FOUNDATION Schedule of Findings and Responses For the Year Ended June 30, 2017 There were no findings and/or responses for the fiscal year ended June 30, 2017. 50 Page 233 READ FOUNDATION Schedule of Prior Year Findings and Responses June 30, 2017 There were no findings and/or responses for the fiscal year ended June 30, 2016. 51 Page 234 Memphis School of Excellence Financial Statements June 30, 2016 Page 235 MEMPHIS SCHOOL OF EXCELLENCE Table of Contents June 30, 2016 PAGE Governance Officials…………………………………………………………………………………………………………..3 Independent Auditor’s Report………………………………………………………………………………………………...4 Management’s Discussion and Analysis……………………………………………………………………………………6 Basic Financial Statements Government-Wide Financial Statements: Statement of Net Position……………………………………………………………………………………………..11 Statement of Activities…………………………………………………………………………………………………12 Fund-Financial Statements: Balance Sheet – Governmental Funds………………………………………………………………………………13 Reconciliation of the Balance Sheet to the Statement of Net Position – Government Activities……..………………………............................................................................14 Statement of Revenues, Expenditures, and Changes in Fund Balance – Government Fund………………………………………………………………………………………………………...15 Reconciliation of the Statement of Revenues, Expenditures, and Change in Fund Balances of Governmental Funds to the Statement of Activities………………………………16 Notes to the Financial Statements…………………………………………………………………………......................17 Required Supplemental Schedules Schedule of Memphis School of Excellence’s Proportionate Share of the Net Pension Asset – Teacher Legacy Pension Plan of TCRS………………………………………………………………..37 Schedule of Memphis School of Excellence’s Contributions – Teacher Legacy Pension Plan of TCRS……………………………………………………………………………………………………………...38 Schedule of Changes in Net Pension Liability (Asset) and Related Ratios Based on Participation in the Public Employee Pension Plan of TCRS – Non Teacher………………………………………………………………………………………………………...39 Schedule of Contributions Based upon Participation in the Public Employee Pension Plan of TCRS – Non Teacher……………………………………………………………………………………..40 Schedule of Contributions – Teacher Retirement Plan of TCRS…………………………………………………41 Supplemental Schedules Schedule of Expenditures of Federal Awards and State Financial Assistance………………………………….43 Non-Financial Information Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards…………………………………46 Schedule of Findings and Responses……………………………………………………………………………….48 Schedule of Prior Year Findings and Responses…………………………………………………………………..49 Page 236 MEMPHIS SCHOOL OF EXCELLENCE Governance Officials June 30, 2016 BOARD OF DIRECTORS Cem Akkus, President Patty Farmer, Treasurer Fatih Sen, Secretary Dr. Richard Potts Bayram Demirbuga ADMINISTRATIVE OFFICIALS Muhammet Turkay, Executive Director 3 Page 237 INDEPENDENT AUDITOR’S REPORT To the Board of Directors Memphis School of Excellence Memphis, Tennessee Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities and the major fund of Memphis School of Excellence as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise Memphis School of Excellence’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and the major fund of Memphis School of Excellence, as of June 30, 2016, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. CANNON WRIGHT BLOUNT PLLC PHONE 901.685.7500 756 RIDGE LAKE BLVD FAX 901.685.7569 MEMPHIS TN 38120 WWW.CANNONWRIGHTBLOUNT.COM Page 238 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Memphis School of Excellence’s basic financial statements. The governance officials schedule and the schedule of expenditures of federal awards and state financial assistance are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards and state financial assistance is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards and state financial assistance is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The governance officials schedule has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report, dated December 8, 2016, on our consideration of Memphis School of Excellence’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Memphis School of Excellence’s internal control over financial reporting and compliance. Memphis, Tennessee December 8, 2016 5 Page 239 MEMPHIS SCHOOL OF EXCELLENCE Management’s Discussion and Analysis June 30, 2016 The following Management’s Discussion and Analysis (MD&A) of Memphis School of Excellence’s (the “School”) activities and financial performance provides the reader with an introduction and overview to the financial statements of the School for the year ended June 30, 2016. This information should be considered within the context of the accompanying financial statements and note disclosures. OVERVIEW OF THE FINANCIAL STATEMENTS Financial Highlights  The assets of the School exceeded its liabilities at the end of the fiscal year by $2,425,989 (net position).  The School’s total net position increased by $651,861.  The School’s total expenses increased by $460,794, primarily due to increase in general salaries and the addition of several new teachers during the fiscal year. This financial report consists of a series of financial statements, notes to those statements, and required supplementary information. The statements are organized so that the reader can understand the School as a whole and then proceed to a detailed look at specific financial activities of the School. Reporting the School as a Whole The Statement of Net Position and Statement of Activities: In general, users of these financial statements want to know if the School is better off or worse off as a result of the year’s activities. The Statement of Net Position and Statement of Activities report information about the School as a whole and about the School’s activities in a manner that helps to answer that question. These statements include all assets and liabilities using the accrual basis of accounting. Under the accrual basis, all of the current year’s revenue and expenses are taken into consideration regardless of when cash is received or paid. The Statement of Net Position reports the School’s net position (total assets less total liabilities). Private sector entities would report retained earnings. The School’s net position balance at year-end represents available resources for future growth. The Statement of Activities reports the change in net position as a result of activity during the year. Private sector entities have a similar report titled the statement of operations, which reports net income. It provides the user a tool to assist in determining the direction of the School’s financial health during the year. Users will want to consider non-financial factors as well as the financial data in arriving at a conclusion regarding the overall health of the School. Reporting the School’s Funds Fund Financial Statements: The School’s governmental fund financial statements, the Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balances, provide detailed information about the School’s most significant funds, not the School as a whole. Funds are established by the School to help manage money for particular purposes and compliance with various grant provisions. The School’s funds are categorized as “governmental funds.” Governmental funds focus on how money flows into and out of the funds and the balances left at year-end that are available for spending in future periods. Fund financial statements are reported using an accounting method called “modified accrual” accounting, which measures cash and other financial assets that can readily be converted to cash. This basis of accounting is different from the accrual basis used in the school – wide financial statements to report on the School as a whole. The relationship between governmental activities, as reported in the Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balances is reconciled following the basic financial statements. 6 Page 240 MEMPHIS SCHOOL OF EXCELLENCE Management’s Discussion and Analysis June 30, 2016 FINANCIAL ANALYSIS A summary of the School's financial position for its Governmental Activities is as follows: 2016 Assets $ 4,477,959 Increase (Decrease) 2015 $ 2,782,062 $ 1,695,897 Liabilities 2,051,970 1,007,934 1,044,036 Net position Invested in capital assets Unrestricted 1,484,255 941,734 1,052,814 721,314 431,441 220,420 Total net position $ 2,425,989 $ 1,774,128 $ 651,861 A summary of the School’s operations from governmental activities is as follows: 2016 Revenues $ Expenses Change in net position 4,159,192 $ 3,507,331 $ 651,861 Increase (Decrease) 2015 3,877,941 $ 3,046,537 $ 831,404 281,251 460,794 $ (179,543) Comparisons of the Statement of Revenue, Expenditures and Changes in Fund Balance – Governmental Funds are as follows: Revenues Funding for the School comes primarily through the per-pupil allocation from the Shelby County Schools’ Board of Education. An analysis of the changes between the current year and prior year governmental activity revenues are as follows: 2016 Shelby County Schools Federal and state awards and contributions Other charges for services Total $ 3,480,342 $ 377,428 301,422 $ 4,159,192 Increase (Decrease) 2015 3,412,449 $ 393,132 72,360 $ 3,877,941 67,893 (15,704) 229,062 $ 281,251 7 Page 241 MEMPHIS SCHOOL OF EXCELLENCE Management’s Discussion and Analysis June 30, 2016 The variance for Memphis School of Excellence’s per-pupil allocation is due to the increase in the School’s enrollment, from an average of 441 students in the prior year to an average of 446 students in the current year. The Capital Outlay funds are based on student enrollment. Because of the increase in student enrollment in the current year, the School received more funding than in the previous year. Federal awards consist of a Title I Grant for Tennessee Public Charter Schools. The School’s Title I funding allocation increased in the current year. Expenses An analysis of the changes between the current year and prior year governmental funds expenses are as follows: Salaries, wages, and benefits Instructional General and administrative Other instructional Food services General and administrative Debt service Total Increase (Decrease) 2016 2015 $ 1,855,937 199,258 91,121 1,345 1,340,005 19,665 1,569,995 193,791 157,809 1,263 1,095,547 28,132 $ 285,942 5,467 (66,688) 82 244,458 (8,467) $ 3,507,331 3,046,537 $ 460,794 $ The increase in salaries, wages, and benefits is due to more teachers and other instructional staff employed during the current year because of the increase in enrollment. Other instructional expenses increased in the current year due primarily to the increased need for the purchases of instructional supplies during the current year because of the increase in enrollment. General and administration expenses include professional fees for accounting and other contracted services, professional development expenses, marketing, advertising, telephone and internet expense, repairs and maintenance, lease expenses, printing and office supplies. The current year decrease in general and administration expense is due to decreases in salaries. ECONOMIC FACTORS Significant economic factors affecting the School are as follows:  The amount of State funding received per student for the year. This amount per student can fluctuate from year to year based on total funds available to the State and the number of students enrolled during the school year.  The continued funding of other programs and grants.  Inflationary pressure on utility rates, supplies, insurance, and other costs.  Local labor supply and demand, which can affect salary and wage rates. 8 Page 242 MEMPHIS SCHOOL OF EXCELLENCE Management’s Discussion and Analysis June 30, 2016 REQUEST FOR INFORMATION This financial report is designed to provide a general overview of the School’s finances for all those with an interest in the School. Questions concerning any of the information provided in this report may be addressed to the office of: Memphis School of Excellence 4450 South Mendenhall Road, Suite 1 Memphis, Tennessee 38141 Telephone (901) 367-7814 9 Page 243 Basic Financial Statements Page 244 MEMPHIS SCHOOL OF EXCELLENCE Statement of Net Position June 30, 2016 Governmental Activities Assets Cash Grants receivable Prepaid expenses Net pension asset Non-depreciable capital assets Depreciable capital assets, net of accumulated depreciation $ Total assets 1,078,283 36,156 50,000 21,598 1,012,063 1,497,479 3,695,579 Deferred outflows of resources 782,380 Liabilities Accounts payable Accrued liabilities Note payable - due in one year Note payable - due in more than one year 27,127 54,032 940,000 85,287 Total liabilities 1,106,446 Deferred inflows of resources 945,524 Net position Net investment in capital assets Unrestricted Total net position 1,484,255 941,734 $ 2,425,989 See independent auditor’s report and notes to the financial statement 11 Page 245 MEMPHIS SCHOOL OF EXCELLENCE Statement of Activities June 30, 2016 Total Instructional and Student Services $ 2,055,195 141,418 239,983 933,064 44,674 15,436 11,936 21,360 24,065 535 19,665 $ 1,855,937 230,384 895,741 34,185 1,231 11,936 22,711 535 - 3,507,331 3,052,660 435,006 19,665 Program revenues: Operating grants and contributions Capital grants and contributions Charges for services 192,428 185,000 301,422 192,428 185,000 301,422 - - Total program revenues 678,850 678,850 - - Governmental Activities Program expenses : Employee compensation Office Depreciation Occupancy Supplies Staff development Travel Advertising Other Student services Interest Total expenses Net program expenses General revenues: SCS per pupil allocations Change in net position Net position: Beginning of year Net position, end of year General and Administrative Debt Service $ (2,828,481) $ (2,373,810) $ 199,258 141,418 9,599 37,323 10,489 14,205 21,360 1,354 - $ (435,006) $ 19,665 (19,665) 3,480,342 651,861 1,774,128 $ 2,425,989 See independent auditor’s report and notes to the financial statement 12 Page 246 MEMPHIS SCHOOL OF EXCELLENCE Balance Sheet – Governmental Funds June 30, 2016 General Fund Assets Cash Grants receivable Prepaid expenses Total assets $ 1,078,283 36,156 50,000 $ 1,164,439 $ 27,127 54,032 Liabilities and Fund Balance Liabilities: Accounts payable Accrued liabilities Total liabilities 81,159 Fund balance: Non-spendable Unassigned 50,000 1,033,280 Total fund balance Total liabilities and fund balance 1,083,280 $ 1,164,439 See independent auditor’s report and notes to the financial statements 13 Page 247 MEMPHIS SCHOOL OF EXCELLENCE Reconciliation of the Balance Sheet to the Statement of Net Position – Governmental Activities June 30, 2016 General Fund Total governmental fund balance $ 1,083,280 Amounts reported for governmental activities in the Statement of Net Position are different because: Net pension asset is not carried on the General Fund Balance Sheet Long-term debt is not due and payable in the current period and, therefore, is not reported in the general fund Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Deferred outflows/inflows related to pensions are not reported in the General Fund Balance Sheet Net position of governmental activities 21,598 (1,025,287) 2,509,542 (163,144) $ 2,425,989 See independent auditor’s report and notes to the financial statement 14 Page 248 MEMPHIS SCHOOL OF EXCELLENCE Statement of Revenues, Expenditures, and Changes in Fund Balance – Governmental Fund For the Year Ended June 30, 2016 General Fund Revenues: Shelby County Schools Federal awards and contributions Capital outlay Other charges for services $ Total revenues 3,480,342 192,428 185,000 301,422 4,159,192 Expenditures: Current: Salaries, wages and benefits: Instructional General and administration Instructional expenses General and administration Capital outlay: Current expenditures Debt service: Principal payments on notes payable Interest 1,943,581 210,950 966,339 226,149 1,245,358 186,066 19,665 Total expenditures 4,798,108 Revenues over (under) expenditures (638,916) Other financial sources Issuance of note payable 760,000 Net change in fund balance 121,084 Fund Balance: Beginning of year Fund balance - end of year 962,196 $ 1,083,280 See independent auditor’s report and notes to the financial statement 15 Page 249 MEMPHIS SCHOOL OF EXCELLENCE Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2016 General Fund Net change in fund balance - governmental funds $ 121,084 Amounts reported for governmental activities in the Statement of Activities are different because: GASB 68 negative pension expense is not reported in the Statement of Revenues, Expenditures and Changes in Fund Balance 99,336 Repayment of the principal of long-term debt consumes the current financial resources of governmental funds. These transactions do not have any effect on net assets 186,066 Issuance of long term debt provides the current financial resources to governmental funds. These transactions do not have an effect on net assets. (760,000) Capital outlays, reported as expenditures in governmental funds, are shown as capital assets on the Statement of Net Position 1,245,358 Depreciation expense on capital assets is included only in the governmental activities in the Statement of Activities Change in net position of governmental activities (239,983) $ 651,861 See independent auditor’s report and notes to the financial statement 16 Page 250 MEMPHIS SCHOOL OF EXCELLENCE Notes to the Financial Statements June 30, 2016 Note 1 - Summary of Significant Accounting Policies Reporting Entity Memphis School of Excellence (the “School”) was formed on September 3, 2009, as a Tennessee non-profit corporation. The Read Foundation (the “Foundation”), a Tennessee non-profit corporation, is the sponsor of the School. Pursuant to the provisions of the Tennessee Public Charter Schools Act of 2002 (the Act), T.C.A. Section 49-12-101, et seq., the School has been approved as a public charter school. Pursuant to the Act, public charter schools are part of the state’s public education program offering an alternative means within the public school system for accomplishing necessary outcomes of education. The School, through the Read Foundation, as sponsor, entered into a Charter School Agreement with the Board of Education of the Shelby County Schools to operate a charter school in Memphis, Tennessee, for the purpose of operating an alternative school to improve the learning of students with special needs as specified in the Federal Individuals with Disabilities Education Act. The School, located at 4450 S. Mendenhall Road, Suite 1, Memphis, TN 38141, began classes on September 3, 2010 with grades sixth through ninth. The initial Charter School Agreement expires in October 1, 2020, and is subject to renewal at the discretion of the Board of Education for the Shelby County Schools. Measurement focus, basis of accounting and presentation The School, in accordance with the applicable Governmental Accounting Standards Board (GASB) statement, is considered a special-purpose governmental entity and is not a component unit of another governmental entity. Therefore, the financial statements have been prepared in the same manner as general-purpose governments. The School’s basic financial statements include both government-wide and fund financial statements. The government-wide financial statements (i.e., the statements of net position and the statement of activities) report information on all the non-fiduciary activities of the primary government. Governmental activities normally are supported by taxes and inter-governmental revenues and are paid to the School through the Board of Education of the Shelby County Schools. The government-wide financial statements of the School have been prepared on the accrual basis of accounting. Under the accrual basis, revenues are recognized when earned and expenses are recognized when incurred. The governmental fund financial statements are presented on the modified accrual basis of accounting. Revenues under the modified accrual basis are recognized when measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the School considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when the related liability is incurred, as under accrual accounting. Government-wide Financial Statements In the government-wide statement of net position, activities are reported on a full accrual, economic resource basis, which recognizes all long-term assets and receivables as well as long-term debt and obligations. The statement of net position presents the financial condition of the School at year-end. GASB Statement 63 requires the classification of net position into three components: invested in capital assets, net of related debt; restricted; and unrestricted. These classifications are defined as follows: Net investment in capital assets – This component of net position consists of capital assets, including restricted capital assets, net of accumulated depreciation and reduced by outstanding balances (if any) of bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction or improvement of those assets. If there are significant unspent related debt proceeds at year end, the portion of the debt attributable to the unspent proceeds is not included in the calculation of invested in capital assets, net of related debt. Rather, that portion of the debt is included in the same net position component as the unspent proceeds. 17 Page 251 MEMPHIS SCHOOL OF EXCELLENCE Notes to the Financial Statements June 30, 2016 Restricted – This component of net position consists of constraints placed on net position use through external constraints imposed by creditors (such as through debt covenants), contributors or laws or regulations of other governments or constraints imposed by law through constitutional provisions or enabling legislation. Unrestricted – This component of net position consists of net position that do not meet the definition of restricted or invested in capital assets, net of related debt. When both restricted and unrestricted assets are available for use, it is the School’s policy to utilize restricted assets first, then unrestricted assets as needed. The government-wide statement of activities demonstrates the degree to which the direct expenses of a given function or program is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to students for lunches, school supplies, after school care, athletic programs, and other services; 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment; and 3) contributions that are generally unrestricted. The primary sources of the School’s revenue are from the following: Shelby County Schools – The School receives funds from Shelby County Schools (SCS) based on a per-pupil allocation. The School received $7,735 per-pupil and had an average of 446 students for the year ended June 30, 2016. The per-pupil allocation received for the year ended June 30, 2016, totaled $3,480,342 and is included in the Shelby County Schools revenue. Federal Awards – The School is a recipient of Title I and Planning and Implementation federal grant monies. The School recognizes grant income when it is earned. The School recognized $192,428 in federal grant revenue for the year June 30, 2016. The School also received $185,000 from the State of Tennessee Capital Outlay Grant, which was disbursed through the Board of Education of the Shelby County Schools. Contributions – Contributions are recognized as support when they are pledged or received. The School reports gifts of cash and other assets as unrestricted support unless they are received with donor stipulations that limit the use of the donated assets. Governmental Fund Financial Statements The financial transactions of the School are reported in individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, reserves, fund equity, revenues and expenditures. The School reports the following major governmental fund: The General Fund is the primary operating fund of the School and accounts for all financial resources of the general government, except those required to be accounted for in another fund, if any. The governmental funds’ focus is upon the determination of financial resources, their balance, sources and use, rather than upon net income. In accordance with the applicable GASB statement, the School classifies governmental fund balances as: non-spendable, restricted, committed, assigned and unassigned based on the level of constraints on the fund balances. When an expenditure is incurred in which both restricted and unrestricted funds are available for use, it is the School’s policy to spend restricted funds first, then unrestricted funds. When an expenditure has been incurred for purposes in which multiple categories of unrestricted funds are available, it is the School’s policy to spend funds in the following order, committed, then assigned, and lastly unassigned funds. The classifications of fund balances are defined as follows: Non-spendable – This classification consists of fund balances that cannot be spent because they are either not in spendable form, for example, noncash amounts that are not expected to be converted to cash, or the funds are legally or contractually required to be maintained intact. Restricted – This classification consists of fund balances with external constraints on use imposed by creditors (such as through debt covenants), contributors or laws or regulations of other governments or constraints imposed by law through constitutional provisions or enabling legislation. 18 Page 252 MEMPHIS SCHOOL OF EXCELLENCE Notes to the Financial Statements June 30, 2016 Committed – This classification consists of fund balances that can only be used for specific purposes established by formal action of the School’s Board of Directors, its highest level of decision making authority. Such commitments should include contractual obligations of fund assets. Fund balance commitments can only be removed by the same process of the same body employed to previously commit those amounts. Assigned – This classification consists of all fund balances that are not in the general fund or classified as non-spendable, restricted, or committed. In addition, general fund balances that the School intends to use for specific purposes are classified as assigned. The School gives the authority to assign amounts for specific purposes to the School’s office manager and personnel under the supervision of the school office manager tasked with financial recording responsibilities. Unassigned – This classification consists of all fund balances in the general fund that are not reported as non-spendable, restricted, committed or assigned. Other Accounting Policies Cash and Cash Equivalents The School considers deposits that can be redeemed on demand and investments that have original maturities of less than three months, when purchased, to be cash equivalents. Grants Receivable Grants Receivable represents amounts due from the State of Tennessee for reimbursement of expenses allocated to the Title I grant. An allowance for doubtful accounts is maintained based upon collection experience and a review of the collectability of specific outstanding receivables. Receivables are charged against the allowance when they are determined to be uncollectible by management. There is no allowance for doubtful accounts as of June 30, 2016, as management believes all amounts are collectible. Capital Assets Capital assets acquired by the School are considered to be owned by the School. However, State funding sources may maintain equitable interest in the capital assets purchased with grant monies as well as the right to determine the use of any proceeds from the sale of these assets. The State’s equitable interest is in capital assets with an acquisition cost which equals or exceeds $5,000 and an estimated useful life of more than one year. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized. Capital assets purchased are stated at cost, if purchased, or the estimated value on the date received, if donated. Depreciation is computed using the straight-line method over the estimated useful lives of the assets and over the term of the lease for leasehold improvements, ranging from 3 to 20 years. The School follows the practice of capitalizing all expenditures for property and equipment items over $1,500. Accrued Compensated Absences No accrual of compensated absences is necessary for the School’s faculty/staff because the summer months, during which classes are not in session, are considered employees’ vacation. The administrative employees of the School follow the same schedule as the employees of the charter school; therefore, no compensated absences accrual for any of the employees of the School is appropriate. Income Taxes The School has been determined to be exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code (IRC) as evidenced by a letter of determination dated September 17, 2009. As an exempt corporation, the School must operate in conformity with the IRC in order to maintain its tax-exempt status. The School is also exempt from state income tax. As of June 30, 2016, the following tax years remain open due to the applicable tax authority’s ability to review and assess previously issued returns: federal – June 30, 2013, 2014, 2015 and 2016. 19 Page 253 MEMPHIS SCHOOL OF EXCELLENCE Notes to the Financial Statements June 30, 2016 Pensions (Teacher Legacy Pension Plan; Teacher Retirement Plan; Public Employee Retirement Plan) For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the above named plans in the Tennessee Consolidated Retirement System (TCRS) and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis as they are reported to the TCRS. For this purpose, benefits (including refunds of employee contributions) are recognized when due and payable in accordance with the benefits terms of the pension plans named above. Investments are reported at fair value. Deferred Outflows / Inflows of Resources As defined in GASB statement 63, in addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, Deferred Outflows of Resources, represents a consumption of net position that applies to a future period and so will not be recognized as an expense or expenditure until then. The School has no items that meet this criterion. As defined in GASB statement 63, in addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, Deferred Inflows of Resources, represents an acquisition of net position that applies to a future period and so will not be recognized as revenue until then. The School has no items that meet the criterion for this category. Obligations In the government-wide financial statements, debt and other obligations are reported as liabilities in the applicable governmental activities and statement of net position. In the fund financial statements, any obligations secured by capital assets would not be reflected as a liability. Estimates and Uncertainties The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Concentrations Approximately 83% of the School’s funding during the year ended June 30, 2016, was from the Board of Education of Shelby County Schools for their per-pupil allocation. Events occurring after reporting date The School has evaluated subsequent events for potential recognition and disclosure through December 8, 2016, the date that the financial statements were approved for issuance. Note 2 – Deposits with Financial Institutions At June 30, 2016, the School’s carrying amount of deposits was $1,078,283 and the bank balances totaled $1,085,452. Accounts at the institution are insured by the Federal Deposit Insurance Company up to an aggregate of $250,000, therefore the school maintains its bank account at a banking institution that is included as a Collateral Pool Participant, which provides collateral coverage for public funds deposits in excess of $250,000. 20 Page 254 MEMPHIS SCHOOL OF EXCELLENCE Notes to the Financial Statements June 30, 2016 Note 3 – Capital Assets Capital asset activity was as follows: June 30, 2015 Non-depreciable capital assets: Construction in process $ Total depreciable capital assets Less accumulated depreciation: Leasehold improvements Furniture and equipment Total accumulated depreciation Total depreciable capital assets, net Total capital assets, net - $ 1,012,063 - Disposals $ 1,012,063 1,012,063 - 1,012,063 2,231,697 255,384 173,085 60,210 - 2,404,782 315,594 2,487,081 233,295 - 2,720,376 (822,868) (160,046) (204,558) (35,425) - (1,027,426) (195,471) (982,914) (239,983) - (1,222,897) (6,688) - 1,497,479 - $ 2,509,542 1,504,167 $ 1,504,167 $ 1,005,375 $ June 30, 2016 - Total non-depreciable capital assets, net Depreciable capital assets: Leasehold improvements Furniture and equipment Additions $ Depreciation expense was charged to: Governmental Activities: Instructional General and Administrative $ 230,384 9,599 Total depreciation expense - governmental activities $ 239,983 Note 4 – Operating Leases The School leases office and instructional facilities under a lease agreement which will expire July 2020. Rent expenses under this lease totaled $496,465 for the year ended June 30, 2016. The School also leases certain equipment which will expire between June 2018 and April 2020. Rent expense under these leases totaled $12,883 for the year ended June 30, 2016. Future minimum lease payments required under these leases for the years ending June 30 are as follows: 2017 2018 2019 2020 2021 $ 536,586 552,841 556,780 573,173 47,685 $ 2,267,065 21 Page 255 MEMPHIS SCHOOL OF EXCELLENCE Notes to the Financial Statements June 30, 2016 Note 5 – Note payable The School has a $265,287 note payable to a construction company payable in monthly installments of $14,800 including interest at 4% per annum, maturing December 2017, collateralized by certain equipment. The School also has a $760,000 short-term payable to bank that will be due January 1, 2017, which is currently being renegotiated into a construction loan and has yet to be finalized (see note 12). Note payable transactions for the year Beginning Balance Increase $ 451,353 $ 760,000 Decrease Ending Balance $ (186,066) $ 1,025,287 Due within One Year $ 940,000 Future minimum principal payments for the years ending June 30 are as follows: 2017 $ 940,000 2018 85,287 $ 1,025,287 Note 6 – Commitments On July 1, 2013, the School entered into an educational professional services agreement with Harmony Public School, a Texas-based non-profit organization, to provide management and consulting services, training and providing ongoing professional development to the School in all areas within the charter school system. The contract is a three year agreement which expired June 30, 2016. The School agreed to pay Harmony Public School an annual fee of $15,000 per year. As of June 30, 2016, the contract has been extended an additional three years which will expire on June 30, 2019, with all of the above terms and annual fee remaining the same. On December 31, 2014, the School entered into an educational professional services agreement with Teach for America, a Connecticut-based non-profit organization for recruiting, selecting, training and providing ongoing professional development to teachers within the charter school system. The School agrees to hire a minimum of five (5) teachers from the Teach for America program for the academic years ending 2016, 2017, and 2018. The School agrees to pay Teach for America an annual fee of $5,000 for each year that teacher is employed. The School paid $45,000 under this agreement for the year ended June 30, 2016. 22 Page 256 MEMPHIS SCHOOL OF EXCELLENCE Notes to the Financial Statements June 30, 2016 Note 7 - Teacher Legacy Pension Plan General Information about the Pension Plan Plan description. Teachers with membership in the Tennessee Consolidated Retirement System (TCRS) before July 1, 2014, of Memphis School of Excellence are provided with pensions through the Teacher Legacy Pension Plan, a cost sharing multiple-employer pension plan administered by the TCRS. The Teacher Legacy Pension Plan closed to new membership on June 30, 2014, but will continue providing benefits to existing members and retirees. Beginning July 1, 2014, the Teacher Retirement Plan became effective for teachers employed by the School after June 30, 2014. The Teacher Retirement Plan is a separate cost-sharing, multiple-employer defined benefit plan. The TCRS was created by state statute under Tennessee Code Annotated Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of all employer pension plans in the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publically available financial report that can be obtained at www.treasury.tn.gov/tcrs. Benefits provided. Tennessee Code Annotated Title 8, Chapters 34-37 establishes the benefit terms and can be amended only by the Tennessee General Assembly. Members of the Teacher Legacy Pension Plan are eligible to retire with an unreduced benefit at age 65 with 5 years of service credit or pursuant to the rule of 90 in which the member’s age and service credit total 90. Benefits are determined by a formula using the member’s highest five consecutive year average compensation and the member’s years of service credit. A reduced early retirement benefit is available at age 60 and vested or pursuant to the rule of 80. Members are vested with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced 10 percent and include projected service credits. A variety of death benefits are available under various eligibility criteria. Member and beneficiary annuitants are entitled to automatic cost of living adjustments (COLAs) after nd retirement. A COLA is granted each July for annuitants retired prior to the 2 of July of the previous year. The COLA is based on the change in the consumer price index (CPI) during the prior calendar year, capped at 3 percent, and applied to the current benefit. No COLA is granted if the change in the CPI is less than onehalf percent. A one percent COLA is granted if the CPI change is between one-half percent and one percent. A member who leaves employment may withdraw their employee contributions, plus any accumulated interest. Under the Teacher Legacy Pension Plan, benefit terms and conditions, including COLAs, can be adjusted on a prospective basis. Moreover, there are defined cost controls and unfunded liability controls that provide for the adjustment of benefit terms and conditions on an automatic basis. Contributions. Contributions for teachers are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly or automatic cost controls set out by law. Teachers contribute 5 percent of salary. The School makes employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation. Per the statutory provisions governing the TCRS, the employer contribution rate cannot be less than 4 percent, except in years when the maximum funded level, as established by the TCRS Board of Trustees, is reached. By law, employer contributions for the Teacher Legacy Pension Plan are required to be paid. TCRS may intercept the state shared taxes of the sponsoring governmental entity of the School if the required employer contributions are not remitted. Employer contributions by Memphis School of Excellence for the year ended June 30, 2016, to the Teacher Legacy Pension Plan were $91,917 which is 9.04 percent of covered payroll. The employer rate, when combined with member contributions, is expected to finance the costs of benefits earned by members during the year, the cost of administration, as well as an amortized portion of any unfunded liability. 23 Page 257 MEMPHIS SCHOOL OF EXCELLENCE Notes to the Financial Statements June 30, 2016 Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Pension liabilities (assets). At June 30, 2016, Memphis School of Excellence reported a liability of $11,126 for its proportionate share of net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. Memphis School of Excellence’s proportion of the net pension liability was based on Memphis School of Excellence’s share of contributions to the pension plan relative to the contributions of all LEAs. At the measurement date of June 30, 2015, Memphis School of Excellence’s proportion was 0.027161 percent. The proportion measured as of June 30, 2014 was 0.000000 percent. Negative pension expense. For the year ended June 30, 2016, Memphis School of Excellence recognized negative pension expense of $9,393. Deferred outflows of resources and deferred inflows of resources. For the year ended June 30, 2016, Memphis School of Excellence reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ 8,929 $ 173,181 Net difference between projected and actual earnings on pension plan investments 200,904 272,738 Changes in proportion of Net Pension Liability (Asset) 290,435 - 43,893 - Memphis School of Excellence's contributions subsequent to the measurement date of June 30, 2015 Total $ 544,161 $ 445,919 Memphis School of Excellence employer contributions of $135,810, reported as pension related deferred outflows of resources, subsequent to the measurement date, will be recognized as an increase in net pension liability (asset) in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended June 30: 2017 $ (15,450) 2018 (15,450) 2019 (15,450) 2020 75,463 2021 25,237 Thereafter In the table above, positive amounts will increase pension expense, while negative amounts will decrease pension expense. 24 Page 258 MEMPHIS SCHOOL OF EXCELLENCE Notes to the Financial Statements June 30, 2016 Actuarial assumptions. The total pension liability in the June 30, 2015 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Salary increases Investment rate of return Cost-of Living Adjustment 3.0 percent Graded salary ranges from 8.97 to 3.71 percent based on age, including inflation, averaging 4.25 percent 7.5 percent, net of pension plan investment expenses, including inflation 2.5 percent Mortality rates are customized based on the June 30, 2012, actuarial experience study and included some adjustment for expected future improvement in life expectancy. The actuarial assumptions used in the June 30, 2015, actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2008 through June 30, 2012. The demographic assumptions were adjusted to more closely reflect actual and expected future experience. The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees in conjunction with the June 30, 2012 actuarial experience study by considering the following three techniques: (1) the 25-year historical return of the TCRS at June 30, 2012, (2) the historical market returns of asset classes from 1926 to 2012 using the TCRS investment policy asset allocation, and (3) capital market projections that were utilized as a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. Four sources of capital market projections were blended and utilized in the third technique. The blended capital market projection established the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding inflation of 3 percent. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Asset Class U.S. equity Developed market international equity Emerging market international equity Private equity and strategic lending U.S. fixed income Real estate Short-term investments Long-Term Expected Real Rate of Return 6.46% 6.26% 6.40% 4.61% 0.98% 4.73% 0.00% Target Allocation 33% 17% 5% 8% 29% 7% 1% 100% The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees as 7.5 percent based on a blending of the three factors described above. Discount rate. The discount rate used to measure the total pension liability was 7.5 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current rate and that contributions from the all LEAs will be made at the actuarially determined contribution rate pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make projected future benefit payments of current active and inactive members. Therefore, the 25 Page 259 MEMPHIS SCHOOL OF EXCELLENCE Notes to the Financial Statements June 30, 2016 long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the proportionate share of net pension liability (asset) to changes in the discount rate. The following presents Memphis School of Excellence’s proportionate share of the net pension liability (asset) calculated using the discount rate of 7.5 percent, as well as what Memphis School of Excellence’s proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.5 percent) or 1-percentage-point higher (8.5 percent) than the current rate: 1% Decrease (6.5%) $ 758,545 Current Discount Rate (7.5%) $ 11,126 1% Increase (8.5%) $ (607,649) Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position is available in a separately issued TCRS financial report. Payable to the Pension Plan At June 30, 2016, Memphis School of Excellence reported a payable of $43,599 for the outstanding amount of contributions to the pension plan required at the year ended June 30, 2016. Note 8 – Non-Teacher Retirement Plan General Information about the Pension Plan Plan description. Employees of Memphis School of Excellence are provided a defined benefit pension plan through the Public Employee Retirement Plan, an agent multiple-employer pension plan administered by the TCRS. The TCRS was created by state statute under Tennessee Code Annotated Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publically available financial report that can be obtained at www.treasury.tn.gov/tcrs. Benefits provided. Tennessee Code Annotated Title 8, Chapters 34-37 establishes the benefit terms and can be amended only by the Tennessee General Assembly. The chief legislative body may adopt the benefit terms permitted by statute. Members are eligible to retire with an unreduced benefit at age 60 with 5 years of service credit or after 30 years of service credit regardless of age. Benefits are determined by a formula using the member’s highest five consecutive year average compensation and the member’s years of service credit. Reduced benefits for early retirement are available at age 55 and vested. Members vest with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced 10 percent and include projected service credits. A variety of death benefits are available under various eligibility criteria. Member and beneficiary annuitants are entitled to automatic cost of living adjustments (COLAs) after retirement. nd A COLA is granted each July for annuitants retired prior to the 2 of July of the previous year. The COLA is based on the change in the consumer price index (CPI) during the prior calendar year, capped at 3 percent, and applied to the current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A one percent COLA is granted if the CPI change is between one-half percent and one percent. A member who leaves employment may withdraw their employee contributions, plus any accumulated interest. 26 Page 260 MEMPHIS SCHOOL OF EXCELLENCE Notes to the Financial Statements June 30, 2016 Employees covered by benefit terms. At the measurement date of June 30, 2015, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits Inactive employees entitled to but not yet receiving benefits Active employees 4,069 6,771 4,268 15,108 Contributions. Contributions for employees are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly. Employees contribute 5 percent of salary. Memphis School of Excellence makes employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation. For the year ended June 30, 2015, the Actuarially Determined Contribution (ADC) for Memphis School of Excellence was $11,692 based on a rate of 9.27% percent of covered payroll. By law, employer contributions are required to be paid. The TCRS may intercept Memphis School of Excellence’s state shared taxes if required employer contributions are not remitted. The employer’s ADC and member contributions are expected to finance the costs of benefits earned by members during the year, the cost of administration, as well as an amortized portion of any unfunded liability. Net Pension Liability (Asset) The School’s net pension liability (asset) was measured as of June 30, 2015, and the total pension liability used to calculate net pension liability (asset) was determined by an actuarial valuation as of that date. Actuarial assumptions. The total pension liability in the June 30, 2015 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Salary increases Investment rate of return Cost-of Living Adjustment 3.0 percent Graded salary ranges from 8.97 to 3.71 percent based on age, including inflation, averaging 4.25 percent 7.5 percent, net of pension plan investment expenses, including inflation 2.5 percent Mortality rates were based on actual experience from the June 30, 2012, actuarial experience study adjusted for some of the expected future improvement in life expectancy. The actuarial assumptions used in the June 30, 2015, actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2008 through June 30, 2012. The demographic assumptions were adjusted to more closely reflect actual and expected future experience. The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees in conjunction with the June 30, 2012 actuarial experience study by considering the following three techniques: (1) the 25-year historical return of the TCRS at June 30, 2012, (2) the historical market returns of asset classes from 1926 to 2012 using the TCRS investment policy asset allocation, and (3) capital market projections that were utilized as a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. Four sources of capital market projections were blended and utilized in the third technique. The blended capital market projection established the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding inflation of 3 percent. 27 Page 261 MEMPHIS SCHOOL OF EXCELLENCE Notes to the Financial Statements June 30, 2016 The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Asset Class U.S. equity Developed market international equity Emerging market international equity Private equity and strategic lending U.S. fixed income Real estate Short-term investments Long-Term Expected Real Rate of Return Target Allocation 6.46% 6.26% 6.40% 4.61% 0.98% 4.73% 0.00% 33% 17% 5% 8% 29% 7% 1% 100% The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees as 7.5 percent based on a blending of the three factors described above. Discount rate. The discount rate used to measure the total pension liability was 7.5 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current rate and that contributions from the School will be made at the ADC rate pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 28 Page 262 MEMPHIS SCHOOL OF EXCELLENCE Notes to the Financial Statements June 30, 2016 Changes in the Net Pension Liability (Asset) Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (Asset) (a) (b) (a) - (b) Balance at 6/30/14 $ Changes for the year: Service cost Interest Differences between expected and actual experience Contributions - employer Contributions - employees Net investment income Other Benefit payments, including refunds of employee contributions Administrative expense Net changes Balance at 6/30/15 261,347 $ 284,956 5,728 19,398 - (412) - (16,860) 7,854 $ 269,201 $ $ (23,609) 5,728 19,398 5,289 2,853 8,653 - (412) (5,289) (2,853) (8,653) - (16,860) (77) (142) 77 7,996 284,814 $ (15,613) Sensitivity of the net pension liability (asset) to changes in the discount rate. The following presents the net pension liability (asset) of the School calculated using the discount rate of 7.5 percent, as well as what the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.5 percent) or 1-percentage-point higher (8.5 percent) than the current rate: 1% Decrease (6.5%) Memphis School of Excellence's proportionate share of the net pension liability (asset) $ 16,573 Current Discount Rate (7.5%) $ (15,613) $ 1% Increase (8.5%) (42,536) 29 Page 263 MEMPHIS SCHOOL OF EXCELLENCE Notes to the Financial Statements June 30, 2016 Negative Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Negative pension expense. For the year ended June 30, 2016, Memphis School of Excellence recognized negative pension expense of $3,493. Deferred outflows of resources and deferred inflows of resources. For the year ended June 30, 2016, Memphis School of Excellence reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ - $ (330) Net difference between projected and actual earnings on pension plan investments 9,911 7,197 Contributions subsequent to the measurement date of June 30, 2015 6,403 - Total $ 16,314 $ 6,867 The amount shown above for "Contributions subsequent to the measurement date of June 30, 2015," will be recognized as a reduction (increase) to net pension liability (asset) in the following measurement period. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended June 30: 2017 2018 2019 2020 2021 Thereafter $ (4,802) (4,802) (4,802) (285) - In the table above, positive amounts will increase pension expense, while negative amounts will decrease pension expense. Payable to the Pension Plan At June 30, 2016, Memphis School of Excellence reported a payable of $0 for the outstanding amount of contributions to the pension plan required at the year ended June 30, 2016. 30 Page 264 MEMPHIS SCHOOL OF EXCELLENCE Notes to the Financial Statements June 30, 2016 Note 9 – Teacher Retirement Plan (After June 30, 2014) General Information about the Pension Plan Plan description. Teachers with membership in the Tennessee Consolidated Retirement System (TCRS) before July 1, 2014, of Memphis School of Excellence are provided with pensions through the Teacher Legacy Pension Plan, a cost sharing multiple-employer pension plan administered by the TCRS. The Teacher Legacy Pension Plan closed to new membership on June 30, 2014, but will continue providing benefits to members and retirees. Beginning July 1, 2014, the Teacher Retirement Plan became effective for teachers employed by LEAs after June 30, 2014. T he Teacher Retirement Plan is a cost sharing, multiple-employer defined benefit plan. The TCRS was created by state statute under Tennessee Code Annotated Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of all employer pension plans in the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publically available financial report that can be obtained at www.treasury.tn.gov/tcrs. Benefits provided. Tennessee Code Annotated Title 8, Chapters 34-37 establishes the benefit terms and can be amended only by the Tennessee General Assembly. Members of the Teacher Retirement Plan are eligible to retire with an unreduced benefit at age 65 with 5 years of service credit or pursuant to the rule of 90 in which the member’s age and service credit total 90. B e n e f i t s a r e d e t e r m i n e d b y a f o r m u l a u s i n g t h e m ember’s highest five consecutive year average compensation and the member’s years of service credit. A reduced early retirement benefit is available at age 60 and vested or pursuant to the rule of 80. Members are vested with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and nonservice related disability benefits are determined in the same manner as a service retirement benefit but are reduced 10 percent and include projected service credits. A variety of death benefits are available under various eligibility criteria. Member and beneficiary annuitants are entitled to automatic cost of living adjustments nd (COLAs) after retirement. A COLA is granted each July for annuitants retired prior to the 2 of July of the previous year. The COLA is based on the change in the consumer price index (CPI) during the prior calendar year, capped at 3 percent, and applied to the current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A one percent COLA is granted if the CPI change is between one-half percent and one percent. A member who leaves employment may withdraw their employee contributions, plus any accumulated interest. Under the Teacher Retirement Plan, benefit terms and conditions, including COLA, can be adjusted on a prospective basis. Moreover, there are defined cost controls and unfunded liability controls that provide for the adjustment of benefit terms and conditions on an automatic basis. Contributions. Contributions for teachers are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly or by automatic cost controls set out in law. Teachers contribute 5 percent of salary. The School makes employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation. Per the statutory provisions governing the TCRS, the employer contribution rate cannot be less than 4 percent, except for in years when the maximum funded level, approved by the TCRS Board of Trustees, is reached. By law, employer contributions for the Teacher Retirement Plan are required to be paid. TCRS may intercept the state shared taxes of the sponsoring governmental entity of the School if the required employer contributions are not remitted. Employer contributions by Memphis School of Excellence for the year ended June 30, 2016, to the Teacher Retirement Plan were $11,486 which is 4 percent of covered payroll. The employer rate, when combined with member contributions, is expected to finance the costs of benefits earned by members during the year, the cost of administration, as well as an amortized portion of any unfunded liability. 31 Page 265 MEMPHIS SCHOOL OF EXCELLENCE Notes to the Financial Statements June 30, 2016 Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Pension liabilities (assets). At June 30, 2016, Memphis School of Excellence reported an asset of $5,560 for its proportionate share of net pension asset. The net pension asset was measured as of June 30, 2015, and the total pension asset used to calculate the net pension asset was determined by an actuarial valuation as of that date. Memphis School of Excellence’s proportion of the net pension asset was based on Memphis School of Excellence’s share of contributions to the pension plan relative to the contributions of all p a r t i c i p a t i n g LEAs. At the measurement date of June 30, 2015, Memphis School of Excellence’s proportion was 0.138209 percent. Pension expense. For the year ended June 30, 2016, Memphis School of Excellence recognized pension expense of $7,287. Deferred outflows of resources and deferred inflows of resources. For the year ended June 30, 2016, Memphis School of Excellence reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ Net difference between projected and actual earnings on pension plan investments $ (1,810) 449 Memphis School of Excellence's contributions subsequent to the measurement date of June 30, 2015 Total - - (7,164) $ - (6,715) $ (1,810) Memphis School of Excellence’s employer contributions of $4,322, reported as pension related deferred outflows of resources, subsequent to the measurement date, will be recognized as an increase of net pension liability (assets) in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended June 30: 2017 2018 2019 2020 2021 Thereafter $ (38) (38) (38) (38) (151) (1,056) In the table above, positive amounts will increase pension expense, while negative amounts will decrease pension expense. 32 Page 266 MEMPHIS SCHOOL OF EXCELLENCE Notes to the Financial Statements June 30, 2016 Actuarial assumptions. The total pension liability in the June 30, 2015 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Salary increases Investment rate of return Cost-of Living Adjustment 3.0 percent Graded salary ranges from 8.97 to 3.71 percent based on age, including inflation, averaging 4.25 percent 7.5 percent, net of pension plan investment expenses, including inflation 2.5 percent Mortality rates are customized based on the June 30, 2012, actuarial experience study and included some adjustment for expected future improvement in life expectancy. The actuarial assumptions used in the June 30, 2015, actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2008 through June 30, 2012. The demographic assumptions were adjusted to more closely reflect actual and expected future experience. The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees in conjunction with the June 30, 2012 actuarial experience study by considering the following three techniques: (1) the 25-year historical return of the TCRS at June 30, 2012, (2) the historical market returns of asset classes from 1926 to 2012 using the TCRS investment policy asset allocation, and (3) capital market projections that were utilized as a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. Four sources of capital market projections were blended and utilized in the third technique. The blended capital market projection established the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding inflation of 3 percent. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Asset Class U.S. equity Developed market international equity Emerging market international equity Private equity and strategic lending U.S. fixed income Real estate Short-term investments Long-Term Expected Real Rate of Return 6.46% 6.26% 6.40% 4.61% 0.98% 4.73% 0.00% Target Allocation 33% 17% 5% 8% 29% 7% 1% 100% The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees as 7.5 percent based on a blending of the three factors described above. Discount rate. The discount rate used to measure the total pension liability was 7.5 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current rate and that contributions from the all LEAs will be made at the actuarially determined contribution rate pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make projected future benefit payments of current active and inactive members. 33 Page 267 MEMPHIS SCHOOL OF EXCELLENCE Notes to the Financial Statements June 30, 2016 Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the proportionate share of net pension liability (asset) to changes in the discount rate. The following presents Memphis School of Excellence’s proportionate share of the net pension liability (asset) calculated using the discount rate of 7.5 percent, as well as what Memphis School of Excellence’s proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.5 percent) or 1-percentage-point higher (8.5 percent) than the current rate: 1% Decrease (6.5%) Memphis School of Excellence's proportionate share of the net pension liability (asset) $ 986 Current Discount Rate (7.5%) $ (5,560) $ 1% Increase (8.5%) (10,361) Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position is available in a separately issued TCRS financial report. Payable to the Pension Plan At June 30, 2016, Memphis School of Excellence reported a payable of $7,106 for the outstanding amount of contributions to the pension plan required at the year ended June 30, 2016. Note 10 – Reconciliation of Net Pension Assets and Liabilities at June 30, 2016 Asset Liability Net Deferred Deferred Pension Outflows of Inflows of Asset (Liability) Resources Resources Begininng balance July 1, 2015 $ 35,160 $ 228,620 $ (504,662) (445,919) Teacher Legacy Pension Plan (11,126) 544,161 Non-Teacher Retirement Plan (7,996) 16,314 6,867 5,560 (6,715) (1,810) Teacher Retirement Plan (After June 30, 2014) Total assets and liabilities $ 21,598 $ 782,380 $ (945,524) 34 Page 268 MEMPHIS SCHOOL OF EXCELLENCE Notes to the Financial Statements June 30, 2016 Note 11 – Risk Management The School is exposed to the normal risks of loss related to torts; theft or damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The School’s policy is to minimize these risks through the purchase of commercial insurance. Settled claims have not exceeded the commercial insurance coverage in the past three years. Note 12 – Subsequent Events As of December 8, 2016, the School is still negotiating a construction loan with a bank that would incorporate the $760,000 short-term debt that will become due January 1, 2017. The total amount of the loan would be approximately $2,000,000. The School is also in the final stages with an architecture firm to renovate the newly purchased elementary school building for approximately $1,500,000. 35 Page 269 Required Supplemental Schedules Page 270 MEMPHIS SCHOOL OF EXCELLENCE Required Supplemental Schedule June 30, 2016 Schedule of Memphis School of Excellence’s Proportionate Share of the Net Pension Asset Teacher Legacy Pension Plan of TCRS 2016 Memphis School of Excellence's proportion of the net pension liability (asset) 0.271610% Memphis School of Excellence's proportionate share of the net pension liability (asset) $ Memphis School of Excellence's covered payroll $ 1,016,779 Memphis School of Excellence's proportionate share of the net pension liability (asset) as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total pension liability 11,126 1.094257% 99.81% *The amounts presented were determined as of June 30 of the prior fiscal year. This is a 10-year schedule. However, the information in this schedule is not required to be presented retroactively. Years will be added to this schedule in future years until 10 years of information is available. See independent auditor’s report 37 Page 271 MEMPHIS SCHOOL OF EXCELLENCE Required Supplemental Schedule June 30, 2016 Schedule of Memphis School of Excellence’s Contributions Teacher Legacy Pension Plan of TCRS 2015 Contractually required $ Contribution in relation to the contractually required contribution 2016 91,917 $ 135,810 91,917 135,810 Contribution deficiency (excess) $ Memphis School of Excellence's covered payroll $ 1,016,779 Contributions as a percentage of Memphis School of Excellence's covered payroll - 9.04% $ - $ 1,502,323 9.04% This is a 10-year schedule. However, the information in this schedule is not required to be presented retroactively. Years will be added to this schedule in future years until 10 years of information is available. See independent auditor’s report 38 Page 272 MEMPHIS SCHOOL OF EXCELLENCE Required Supplemental Schedule June 30, 2016 Schedule of Changes in Net Pension Liability (Asset) and Related Ratios Based on Participation in the Public Employee Pension Plan of TCRS – Non Teacher 2015 Total pension liability Service cost $ Interest 5,728 19,398 Changes in benefit terms - Differences between actual & expected experience (412) Change of assumptions - Benefit payments, including refunds of employee contributions (16,860) Net change in total pension liability 7,854 Total pension liability - beginning 261,347 Total pension liability - ending (a) $ 269,201 Plan fiduciary net position Contributions - employer $ 5,289 Contributions - employee 2,853 Net investment income 8,653 Benefit payments, including refunds of employee contributions (16,860) Administrative expense Net change in plan fiduciary net position (77) (142) Plan fiduciary net position - beginning 284,956 Plan fiduciary net position - ending (b) $ 284,814 Net Pension Liability (Asset) - ending (a) - (b) $ (15,613) Plan fiduciary net position as a percentage of total pension liability Covered payroll Net pension liability (asset) as a percentage of covered-employee payroll 105.80% $ 53,898 28.97% This is a 10-year schedule; however, the information in this schedule is not required to be presented retroactively. Years will be added to this schedule in future fiscal years until 10 years of information is available. See independent auditor’s report 39 Page 273 MEMPHIS SCHOOL OF EXCELLENCE Required Supplemental Schedule June 30, 2016 Schedule of Contributions Based on Participation in the Public Employee Pension Plan of TCRS – Non Teacher 2015 Contractually required contribution $ Contributions in relation to the contractually required contribution 2016 4,038 4,038 Contribution deficiency (excess) $ - Covered payroll $ 43,560 Contributions as a percentage of covered payroll $ 9.27% 11,692 11,692 $ - $ 126,127 9.27% This is a 10-year schedule; however, the information in this schedule is not required to be presented retroactively. Years will be added to this schedule in future fiscal years until 10 years of information is available. See independent auditor’s report 40 Page 274 MEMPHIS SCHOOL OF EXCELLENCE Required Supplemental Schedule June 30, 2016 Schedule of Contributions – Teacher Retirement Plan of TCRS 2015 Contractually required $ 287 2016 $ 4,322 Contribution in relation to the contractually required contribution 11,486 Contribution deficiency (excess) $ Memphis School of Excellence's covered payroll $ 287,166 4,322 (11,199) $ - $ 108,050 Contributions as a percentage of Memphis School of Excellence's covered payroll 4.00% 4.00% This is a 10-year schedule. However, the information in this schedule is not required to be presented retroactively. Years will added to this schedule in future fiscal years until 10 years of information is available See independent auditor’s report 41 Page 275 Supplemental Schedules Page 276 MEMPHIS SCHOOL OF EXCELLENCE Schedule of Expenditures of Federal Awards and State Financial Assistance Federal Grantor / Program Title / Pass-through Grantor Federal Awards U.S. Department of Education / Board of Education of the Shelby County Schools / Title I Reimbursement For the Year Ended June 30, 2016 (Receivable) Federal Payable Contract CFDA Balance at Number Number June 30, 2015 - 84.010 $ Total Federal Awards State Financial Assistance Tennessee Department of Education / Board of Education of the Shelby County Schools / ADA Per-Pupil Funding Allocation Capital Outlay Funding - n/a n/a Total State Financial Assistance Total Federal Awards and State Financial Assistance $ Receipts (18,167) $ 174,439 (18,167) (Receivable) Payable Disbursements Balance at or Expenditures June 30, 2016 (192,428) $ (36,156) 174,439 (192,428) (36,156) - 3,480,342 185,000 (3,480,342) (185,000) - - 3,665,342 (3,665,342) - (18,167) $ 3,839,781 $ $ (3,857,770) $ (36,156) See independent auditor’s report 43 Page 277 MEMPHIS SCHOOL OF EXCELLENCE Schedule of Expenditures of Federal Awards and State Financial Assistance For the Year Ended June 30, 2016 NOTE 1 - BASIS OF PRESENTATION The Schedule of Expenditures of Federal Awards and State Financial Assistance includes the federal and state grant activity of Memphis School of Excellence and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the State of Tennessee Department of Audit, Audit Manual. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. See independent auditor’s report 44 Page 278 Non-Financial Information Page 279 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Directors Memphis School of Excellence Memphis, Tennessee We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and the major fund of Memphis School of Excellence as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the School’s basic financial statements, and have issued our report thereon dated December 8, 2016. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered Memphis School of Excellence’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Memphis School of Excellence’s internal control. Accordingly, we do not express an opinion on the effectiveness of Memphis School of Excellence’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether Memphis School of Excellence’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. CANNON WRIGHT BLOUNT PLLC PHONE 901.685.7500 756 RIDGE LAKE BLVD FAX 901.685.7569 MEMPHIS TN 38120 WWW.CANNONWRIGHTBLOUNT.COM Page 280 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Memphis, Tennessee December 8, 2016 47 Page 281 MEMPHIS SCHOOL OF EXCELLENCE Schedule of Findings and Responses For the Year Ended June 30, 2016 No matters were reported as findings and/or responses for the fiscal year ended June 30, 2016. 48 Page 282 MEMPHIS SCHOOL OF EXCELLENCE Schedule of Prior Year Findings and Responses June 30, 2016 No matters were reported as findings and/or responses for the fiscal year ended June 30, 2015. 49 Page 283 Year One Staffing Chart 2020-2021 MSE Board of Directors Advisory Committee Director of Dperations Human Resources E. Power School Federal Programs Engagement Manager Coordinator Te ch nolog1.r Coordinator Director of Academics Principal M5E Hickory Principal - MSE High Principal - MSE Elementary Principal - MSE Cordova lrtle'ucIional Coach 6-12 Hill Hickory Hill Cordova Business Manager Business Manager Mam?-lz Academic Coordinator Acacl emic Coordinator Academic Coordinator Acacl emic Coordinator lnsouctional lIlloach Science 6-1.2 Dean of Students Coach Social Studies 6-1.2 Special Education Special Education Coordinatorf'l'eacher CoordinatorfTeacher Special Education Coordinatorf'l'eacher l2} ESL CoordinatorfTeacher l2} ESL Coordinatorf'l'eacher Teachers and Support Staff Teachers and Support Teachers and Support Staff Teachers and Support :42} Staff Staff :15} Secretary Secretary Secretary Secretary Page 284 Year Three Staffing Chart 2022-2023 Shelby County Schools MSE Board of Directors Advisory Committee Executive Director Director of Operations Director of Academics Principal MSE K-8 Hickory Hill Principal - MSE High Hickory Hill Principal - MSE Elementary Cordova Business Manager Business Manager Academic Coordinator Academic Coordinator Academic Coordinator Academic Coordinator Instructional Coach Science 6-12 Dean of Students (2) Dean of Students Dean of Students Dean of Students Instructional Coach Social Studies 612 Counselor (2) Counselor Counselor Counselor (2) Instructional Coach K-5 Special Education Coordinator/Teacher (2) Special Education Coordinator/Teacher Special Education Coordinator/Teacher (2) SPED Coordinator ESL Coordinator/Teacher (2) ESL Coordinator/Teacher ESL Coordinator/Teacher (2) Principal - MSE Cordova Business Manager Teachers and Support Staff (49) Teachers and Support Staff (17) Teachers and Support Staff (19.5) Teachers and Support Staff (27.5) Secretary (3) Secretary (2) Secretary (2) Secretary (2) Technology Coordinator Director of Finance Human Resources & Federal Programs Manager Power School & Engagement Coordinator Instructional Coach ELA 6-12 Instructional Coach Math 6-12 Page 285 Year Five Staffing Chart 2024-2025 Shelby County Schools MSE Board of Directors Advisory Committee Executive Director Director of Operations Director of Academics Principal MSE K-8 Hickory Hill Principal - MSE High Hickory Hill Principal - MSE Elementary Cordova Business Manager Business Manager Academic Coordinator Academic Coordinator Academic Coordinator Academic Coordinator Instructional Coach Science 6-12 Dean of Students (2) Dean of Students Dean of Students Dean of Students Instructional Coach Social Studies 612 Counselor (2) Counselor Counselor Counselor (2) Instructional Coach K-5 Special Education Coordinator/Teacher (2) Special Education Coordinator/Teacher Special Education Coordinator/Teacher (2) SPED Coordinator ESL Coordinator/Teacher (2) ESL Coordinator/Teacher ESL Coordinator/Teacher (2) ESL Coordinator RTI Coordinator Principal - MSE Cordova Business Manager Teachers and Support Staff (49) Teachers and Support Staff (17) Teachers and Support Staff (21.5) Teachers and Support Staff (35.5) Secretary (3) Secretary (2) Secretary (2) Secretary (2) Technology Coordinator Director of Finance Human Resources & Federal Programs Manager Power School & Engagement Coordinator Instructional Coach ELA 6-12 Instructional Coach Math 6-12 Page 286 Attachment O Budget Narrative for Memphis School of Excellence Cordova The budget for Memphis School of Excellence Cordova has been carefully developed to ensure the fiscal stability of the school, as well as ensure students have access to excellent teachers, support services, curricular materials, and other elements that will ensure their success. The budget reflects leadership’s experience in operating schools in Tennessee and is based on both historical data and the elements necessary to run the school. Student Enrollment Memphis School of Excellence Cordova will begin with 225 students in grades 6-9, and grow to 475 students in grades 6-12 by year 5. Enrollment growth is detailed in the table below. Memphis School of Excellence Cordova Enrollment Summary Memphis School of Excellence Cordova Planning Year 2019-2020 6th Grade 7th Grade 8th Grade 9th Grade 10th Grade 11th Grade 12th Grade Total Enrollment Year 1 2020-2021 Year 2 2021-2022 Year 3 2022-2023 Year 4 2023-2024 Year 5 2024-2025 75 50 50 50 75 75 50 50 50 75 75 75 50 50 50 225 300 375 75 75 75 75 50 50 50 450 75 75 75 75 75 50 50 475 Revenue The primary source of revenue for Memphis School of Excellence Cordova will be from the Basic Education Program (BEP). The school has used the current BEP funding levels in 2018-2019 ($9,000 per student) and assumed 1.5% growth year over year to conservatively project budget revenues for its first operational year (2020-2021) and expects to receive approximately $9,272 per student -- which includes the transportation allocation. Additionally, MSE Cordova has budgeted to receive BEP capital funds in the amount of $485 per student per year (based on historical funding levels) and Federal Title I funds of $400 per student per year. We have assumed a 1.5% increase year over year for BEP funds and no increases in Title I funding. While MSE Cordova will apply for startup funds from the Charter School Planning grant program from the TN Department of Education as well as startup funding from the Walton Family Foundation, we recognize these funds are a part of competitive grant processes and are not guaranteed. As such, the school has not included these amounts in its budget. Additionally, the school will pursue philanthropic funds – as needed – to close any budget shortfalls. Page 287 Expenses Salaries and Benefits Memphis School of Excellence Cordova has included the following positions for the planning year and its first five years of operation (see Staffing Chart table below). Memphis School of Excellence Cordova Staffing and Salaries Chart Memphis School of Excellence Cordova Starting Annual Salary Principal Academic Coordinator Dean of Students Business Manager Guidance Counselor Secretary Total Administrators $90,000.00 $60,000.00 $60,000.00 $60,000.00 $55,000.00 $30,000.00 Classroom Teachers Math English Science Social Studies Total Classroom Teachers $50,000.00 $50,000.00 $50,000.00 $50,000.00 Other Teachers PE Art Music Computer Spanish Teacher Interventionist/RTI ESL Coordinator/Teacher SPED Coordinator/Teacher Part-Time ISS Total Other Teachers $50,000.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00 $55,000.00 $30,000.00 Total FTEs Planning Year Year 1 Year 2 Year 3 Year 4 Year 5 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 0.5 1 1 0.5 1 0.5 0.5 2 5 1 1 1 0.5 1 2 6.5 1 1 1 0.5 2 2 7.5 1 1 1 0.5 2 2 7.5 1 1 1 0.5 2 2 7.5 0 3 3 2 2 10 4 4 3 3 14 5 5 3 3 16 6 6 4 4 20 7 7 5 5 24 0 1 0.5 0.5 1 1 1 0.5 1 0 6.5 1 0.5 0.5 1 2 1 1 1 0.5 8.5 2 1 1 2 2 3 2 2 0.5 15.5 2 1 1 2 2 3 2 2 0.5 15.5 2 1 1 2 2 3 2 2 0.5 15.5 1 21.5 29 39 43 47 A 1.5% annual increase has been budgeted for salaries. Benefits include standard employer payroll taxes, such as FICA and Medicare; $250 per employee per year for unemployment insurance; and employer contributions to the Tennessee Consolidated Retirement System (TCRS) at an average of 9% of salaries. Health insurance per employee is based on costs incurred in the past by MSE and is budgeted at $5,400 per employee per year. Additional benefits include life insurance (budgeted at $96 per employee per year) and workers’ comp (budgeted at $60 per employee per year). Programmatic and Operating Expenses The table below outlines assumptions for the programmatic and operating expenses of MSE Cordova. Page 288 Contracted Services Substitute Teachers Nurse Service Well Child Cleaning /Janitorial Services Trash Removal Services Transportation SCS Administrative Services TFA Database Fee Phone/Internet Fees Professional Development Contracted Services - SPED Supplies & Materials Computers (classrooms/labs) Curricular Materials (Textbooks, software) Office Supplies/Copy Paper Testing/Evaluation Copier Janitorial/Cleaning Supplies School Furniture Assumes 5 days per teacher for needed substitutes (at $130 per day). $5,400 per year (based on historical costs). $60,000 per year (based on historical costs). $6,000 per year (based on historical costs). Assumes one bus route is shared with MSE Elementary Cordova in year one ($30,000 per school and $60,000 total); 1 bus route at $60,000 per year in years 2 and 3; and 2 bus routes at $120,000 per year in years 4 and 5. 3% of BEP or $35,000 cap. $5,000 fee per corp member. Assumes MSE Cordova will have 5 corps members in year 1, 7 in year 2, 10 in year 3, 12 in year 4, and 13 in year 5. $5,000 per year for the licensing of an assessment/data management software. $6,000 per year (based on historical costs). $500 per full-time staff member (professional development fees and travel). $15,000 per year for contracted services with licensed providers. $20,000 during the planning year for the purchase of laptops for faculty and staff. $15,000 per year is budgeted for each year thereafter for replacement costs and purchases of computers for computer labs. Should MSE secure funding from the CSP grant, it would consider additional purchases of chromebooks (or other similar student computers) for instructional purposes. $20,000 during the planning year for the purchase of curricular materials and supplies (including software). $10,000 per year is budgeted for each year thereafter for replacement costs and/or additional curricular materials purchases. $10,000 per year (includes office supplies and copy paper). Based on historical costs. $5,000 per year (includes interim assessments and state assessments) for years 1-2; $10,000 per year for years 3-5. Based on historical costs. $6,000 per year (based on historical costs). $8,000 per year (based on historical costs). $50,000 during the planning year and $25,000 in year one for initial furniture purchases. $15,000 Page 289 Security Equipment (i.e. cameras and related equipment) Facility Related Expenses Rent/Debt Service Utilities Facilities Maintenance Security Services Advertisement Insurance per year is budgeted for each year thereafter for replacement costs. MSE anticipates that there will already by some furniture available in the facility it is seeking to purchase (described below). $15,000 during the planning year for the purchase of equipment. $5,000 per year is budgeted for each year thereafter for replacement costs. Memphis School of Excellence has entered into a purchase agreement for the Harding Academy Cordova campus, and is projecting to secure a loan of approximately $6M. The budget assumes MSE Cordova would share debt service costs with MSE Elementary Cordova. Assumptions include a $6M loan with a 20-year amortization schedule at 5% interest. $5,000 per month or $60,000 per year for the MSE Cordova building. $20,000 per year for routine maintenance repairs. $5,000 per year (based on historical costs). $10,000 per year for student recruitment and advertising. Based on historical costs. $15,000 per year (based on historical costs). Costs for accounting, audit, and legal services will be incurred at the network office. Special Education Services MSE Cordova will have a special education coordinator/teacher on staff in years 1-2 and will add a second special education teacher in year 3. In addition, MSE has budgeted $15,000 per year to contract for additional services as needed (i.e. speech therapy, behavioral services). All other special education services will be delivered internally at the school or through the use of Shelby County Schools professionals. Facilities As mentioned in the assumptions above, Memphis School of Excellence has entered into a purchase agreement for the Harding Academy Cordova campus, which would provide a long-term home for MSE Cordova. The school would co-locate on the campus with MSE Elementary Cordova. The Cordova campus has two buildings on the property, totaling 90,000 square feet: an elementary building, comprised of approximately 35,000 square feet, and a middle/high building, comprised of approximately 55,000 square feet. MSE is in conversations with local banks to secure financing for the property, which will require up to $6M to purchase and prepare for opening. MSE Cordova will share debt Page 290 services costs with MSE Elementary Cordova and has included debt service costs in its budget. Please see the summary table below for debt service cost assumptions. Loan Amount Amortization Period Interest Rate Monthly Payment Annual Payment Annual Shared Debt Service Payments $6,000,000 20 years 5% $39,597 $475,168 (split between MSE Elementary Cordova and MSE Cordova by student enrollment). MSE Elementary Cordova MSE Cordova Planning Year (2019-2020) Interest Only Year 1 (2020-2021) Year 2 (2021-2022) Year 3 (2022-2023) Year 4 (2023-2024) Year 5 (2024-2025) $60,000 $217,547 $220,614 $205,186 $193,819 $187,646 $90,000 $257,621 $254,554 $269,982 $281,350 $287,522 Should MSE Cordova not be able to secure the Harding Academy Cordova Campus, it will pursue other facilities options in the Cordova area, including an option to lease space or the purchase and renovation of a facility. MSE believes, though, that the costs included in the table above (which contemplates financing $6M) will be adequate to address other facility scenarios it might face. Network Fees As part of the MSE network of schools, MSE Cordova will share in the costs of the network office, based on the school’s percentage of the network’s total student enrollment. The table below summarizes these costs for MSE Cordova over its first five years of operation. Year 1 (2020-2021) Year 2 (2021-2022) Year 3 (2022-2023) Year 4 (2023-2024) Year 5 (2024-2025) MSE Total Enrollment Across Network MSE Cordova Enrollment 1,272 1,445 1,545 1,645 1,670 225 300 375 450 475 MSE Cordova MSE Cordova Enrollment Network Office Share of Network Office Costs as % to Total Enrollment Costs 17.7% 20.8% 24.3% 27.4% 28.4% $1,073,816 $1,243,795 $1,333,433 $1,505,064 $1,517,312 $189,944 $258,227 $323,649 $411,720 $431,571 Page 291 The table on the following page summarizes revenues and expenses for Memphis School of Excellence Cordova during the planning year and its first five years of operation. Page 292 MSE recognizes that the Cordova campus will have an operating deficit in the planning year (due to initial startup costs and not receiving BEP funding until year one). Because MSE has a strong balance sheet (approximately $1.5M in cash is projected to be on the balance sheet at the end of the 2018-2019 fiscal year, and the organization will have operating surpluses at its current charter schools), MSE, as an organization, will be financially strong. In addition, MSE will be applying for startup funds from the TN Department of Education as well as startup funds from the Walton Family Foundation, which, if awarded, would significantly decrease deficits from initial school startup expenses. Page 293 Attachment P Please see Attachment O and Attachment Q for detailed revenue and expense assumptions for MSE Cordova as well as the Network back-office. These assumptions are also included below. Student Enrollment Memphis School of Excellence Cordova will begin with 225 students in grades 6-9, and grow to 475 students in grades 6-12 by year 5. Enrollment growth is detailed in the table below. Memphis School of Excellence Cordova Enrollment Summary Memphis School of Excellence Cordova Planning Year 2019-2020 6th Grade 7th Grade 8th Grade 9th Grade 10th Grade 11th Grade 12th Grade Total Enrollment Year 1 2020-2021 Year 2 2021-2022 Year 3 2022-2023 Year 4 2023-2024 Year 5 2024-2025 75 50 50 50 75 75 50 50 50 75 75 75 50 50 50 225 300 375 75 75 75 75 50 50 50 450 75 75 75 75 75 50 50 475 Revenue The primary source of revenue for Memphis School of Excellence Cordova will be from the Basic Education Program (BEP). The school has used the current BEP funding levels in 2018-2019 ($9,000 per student) and assumed 1.5% growth year over year to conservatively project budget revenues for its first operational year (2020-2021) and expects to receive approximately $9,272 per student -- which includes the transportation allocation. Additionally, MSE Cordova has budgeted to receive BEP capital funds in the amount of $485 per student per year (based on historical funding levels) and Federal Title I funds of $400 per student per year. We have assumed a 1.5% increase year over year for BEP funds and no increases in Title I funding. While MSE Cordova will apply for startup funds from the Charter School Planning grant program from the TN Department of Education as well as startup funding from the Walton Family Foundation, we recognize these funds are a part of competitive grant processes and are not guaranteed. As such, the school has not included these amounts in its budget. Additionally, the school will pursue philanthropic funds – as needed – to close any budget shortfalls. Expenses Page 294 Salaries and Benefits Memphis School of Excellence Cordova has included the following positions for the planning year and its first five years of operation (see Staffing Chart table below). Memphis School of Excellence Cordova Staffing and Salaries Chart Memphis School of Excellence Cordova Starting Annual Salary Principal Academic Coordinator Dean of Students Business Manager Guidance Counselor Secretary Total Administrators $90,000.00 $60,000.00 $60,000.00 $60,000.00 $55,000.00 $30,000.00 Classroom Teachers Math English Science Social Studies Total Classroom Teachers $50,000.00 $50,000.00 $50,000.00 $50,000.00 Other Teachers PE Art Music Computer Spanish Teacher Interventionist/RTI ESL Coordinator/Teacher SPED Coordinator/Teacher Part-Time ISS Total Other Teachers $50,000.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00 $55,000.00 $30,000.00 Total FTEs Planning Year Year 1 Year 2 Year 3 Year 4 Year 5 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 0.5 1 1 0.5 1 0.5 0.5 2 5 1 1 1 0.5 1 2 6.5 1 1 1 0.5 2 2 7.5 1 1 1 0.5 2 2 7.5 1 1 1 0.5 2 2 7.5 0 3 3 2 2 10 4 4 3 3 14 5 5 3 3 16 6 6 4 4 20 7 7 5 5 24 0 1 0.5 0.5 1 1 1 0.5 1 0 6.5 1 0.5 0.5 1 2 1 1 1 0.5 8.5 2 1 1 2 2 3 2 2 0.5 15.5 2 1 1 2 2 3 2 2 0.5 15.5 2 1 1 2 2 3 2 2 0.5 15.5 1 21.5 29 39 43 47 A 1.5% annual increase has been budgeted for salaries. Benefits include standard employer payroll taxes, such as FICA and Medicare; $250 per employee per year for unemployment insurance; and employer contributions to the Tennessee Consolidated Retirement System (TCRS) at an average of 9% of salaries. Health insurance per employee is based on costs incurred in the past by MSE and is budgeted at $5,400 per employee per year. Additional benefits include life insurance (budgeted at $96 per employee per year) and workers’ comp (budgeted at $60 per employee per year). Page 295 Programmatic and Operating Expenses The table below outlines assumptions for the programmatic and operating expenses of MSE Cordova. Contracted Services Substitute Teachers Nurse Service Well Child Cleaning /Janitorial Services Trash Removal Services Transportation SCS Administrative Services TFA Database Fee Phone/Internet Fees Professional Development Contracted Services - SPED Supplies & Materials Computers (classrooms/labs) Curricular Materials (Textbooks, software) Office Supplies/Copy Paper Assumes 5 days per teacher for needed substitutes (at $130 per day). $5,400 per year (based on historical costs). $60,000 per year (based on historical costs). $6,000 per year (based on historical costs). Assumes one bus route is shared with MSE Elementary Cordova in year one ($30,000 per school and $60,000 total); 1 bus route at $60,000 per year in years 2 and 3; and 2 bus routes at $120,000 per year in years 4 and 5. 3% of BEP or $35,000 cap. $5,000 fee per corp member. Assumes MSE Cordova will have 5 corps members in year 1, 7 in year 2, 10 in year 3, 12 in year 4, and 13 in year 5. $5,000 per year for the licensing of an assessment/data management software. $6,000 per year (based on historical costs). $500 per full-time staff member (professional development fees and travel). $15,000 per year for contracted services with licensed providers. $20,000 during the planning year for the purchase of laptops for faculty and staff. $15,000 per year is budgeted for each year thereafter for replacement costs and purchases of computers for computer labs. Should MSE secure funding from the CSP grant, it would consider additional purchases of chromebooks (or other similar student computers) for instructional purposes. $20,000 during the planning year for the purchase of curricular materials and supplies (including software). $10,000 per year is budgeted for each year thereafter for replacement costs and/or additional curricular materials purchases. $10,000 per year (includes office supplies and copy paper). Based on historical costs. Page 296 Testing/Evaluation Copier Janitorial/Cleaning Supplies School Furniture Security Equipment (i.e. cameras and related equipment) Facility Related Expenses Rent/Debt Service Utilities Facilities Maintenance Security Services Advertisement Insurance $5,000 per year (includes interim assessments and state assessments) for years 1-2; $10,000 per year for years 3-5. Based on historical costs. $6,000 per year (based on historical costs). $8,000 per year (based on historical costs). $50,000 during the planning year and $25,000 in year one for initial furniture purchases. $15,000 per year is budgeted for each year thereafter for replacement costs. MSE anticipates that there will already by some furniture available in the facility it is seeking to purchase (described below). $15,000 during the planning year for the purchase of equipment. $5,000 per year is budgeted for each year thereafter for replacement costs. Memphis School of Excellence has entered into a purchase agreement for the Harding Academy Cordova campus, and is projecting to secure a loan of approximately $6M.The budget assumes MSE Cordova would share debt service costs with MSE Elementary Cordova. Assumptions include a $6M loan with a 20-year amortization schedule at 5% interest. $5,000 per month or $60,000 per year for the MSE Cordova building. $20,000 per year for routine maintenance repairs. $5,000 per year (based on historical costs). $10,000 per year for student recruitment and advertising. Based on historical costs. $15,000 per year (based on historical costs). Costs for accounting, audit, and legal services will be incurred at the network office. Special Education Services MSE Cordova will have a special education coordinator/teacher on staff in years 1-2 and will add a second special education teacher in year 3. In addition, MSE has budgeted $15,000 per year to contract for additional services as needed (i.e. speech therapy, behavioral services). All other special education services will be delivered internally at the school or through the use of Shelby County Schools professionals. Page 297 Facilities As mentioned in the assumptions above, Memphis School of Excellence has entered into a purchase agreement for the Harding Academy Cordova campus, which would provide a long-term home for MSE Cordova. The school would co-locate on the campus with MSE Elementary Cordova. The Cordova campus has two buildings on the property, totaling 90,000 square feet: an elementary building, comprised of approximately 35,000 square feet, and a middle/high building, comprised of approximately 55,000 square feet. MSE is in conversations with local banks to secure financing for the property, which will require up to $6M to purchase and prepare for opening. MSE Cordova will share debt services costs with MSE Elementary Cordova and has included debt service costs in its budget. Please see the summary table below for debt service cost assumptions. Loan Amount Amortization Period Interest Rate Monthly Payment Annual Payment Annual Shared Debt Service Payments Planning Year (2019-2020) Interest Only Year 1 (2020-2021) Year 2 (2021-2022) Year 3 (2022-2023) Year 4 (2023-2024) Year 5 (2024-2025) $6,000,000 20 years 5% $39,597 $475,168 (split between MSE Elementary Cordova and MSE Cordova by student enrollment). MSE Elementary Cordova MSE Cordova $60,000 $217,547 $220,614 $205,186 $193,819 $187,646 $90,000 $257,621 $254,554 $269,982 $281,350 $287,522 Should MSE Cordova not be able to secure the Harding Academy Cordova Campus, it will pursue other facilities options in the Cordova area, including an option to lease space or the purchase and renovation of a facility. MSE believes, though, that the costs included in the table above (which contemplates financing $6M) will be adequate to address other facility scenarios it might face. Network Fees As part of the MSE network of schools, MSE Cordova will share in the costs of the network office, based on the school’s percentage of the network’s total student enrollment. The table below summarizes these costs for MSE Cordova over its first five years of operation. Page 298 Year 1 (2020-2021) Year 2 (2021-2022) Year 3 (2022-2023) Year 4 (2023-2024) Year 5 (2024-2025) MSE Total Enrollment Across Network MSE Cordova Enrollment 1,272 1,445 1,545 1,645 1,670 225 300 375 450 475 MSE Cordova MSE Cordova Enrollment Network Office Share of Network Office Costs as % to Total Enrollment Costs 17.7% 20.8% 24.3% 27.4% 28.4% $1,073,816 $1,243,795 $1,333,433 $1,505,064 $1,517,312 $189,944 $258,227 $323,649 $411,720 $431,571 The table on the following page summarizes revenues and expenses for Memphis School of Excellence Cordova during the planning year and its first five years of operation. Page 299 MSE recognizes that the Cordova campus will have an operating deficit in the planning year (due to initial startup costs and not receiving BEP funding until year one). Because MSE has a strong balance sheet (approximately $1.5M in cash is projected to be on the balance sheet at the end of the 2018-2019 fiscal year, and the organization will have operating surpluses at its current charter schools), MSE, as an organization, will be financially strong. In addition, MSE will be applying for startup funds from the TN Department of Education as well as startup funds from the Walton Family Foundation, which, if awarded, would significantly decrease deficits from initial school startup expenses. Page 300 Memphis School of Excellence Cordova Rev&Exp Pre-Opening Year 2019-2020 Year 1 20202021 Year 2 20212022 Year 3 20222023 Year 4 20232024 Year 5 20242025 Student Enrollment 6th 7th 8th 9th 10th 11th 12th 0) 0) 0) 0) 0) 0) 75) 50) 50) 50) 0) 0) 0) 75) 75) 50) 50) 50) 0) 0) 75) 75) 75) 50) 50) 50) 0) 75) 75) 75) 75) 50) 50) 50) 75) 75) 75) 75) 75) 50) 50) Total 0) 225) 300) 375) 450) 475) 10.00% 23.00) 5.00% 11.00) 10.00% 30.00) 5.00% 15.00) 10.00% 38.00) 5.00% 19.00) 10.00% 45.00) 5.00% 23.00) 10.00% 48.00) 5.00% 24.00) 0.0) 1.0) 1.0) 16.5) 5.0) 21.5) 22.5) 6.5) 29.0) 31.5) 7.5) 39.0) 35.5) 7.5) 43.0) 39.5) 7.5) 47.0) Pre-Opening Year 2019-2020 Year 1 20202021 Year 2 20212022 Year 3 20222023 Year 4 20232024 Year 5 20242025 Basic Education Program BEP - SCS Capital Allocation (SCS) Total Basic Education Program $0.00 $0.00 $0.00 $2,086,263.58 $109,125.00 $2,195,388.58 $2,823,410.04 $145,500.00 $2,968,910.04 $3,582,201.49 $181,875.00 $3,764,076.49 $4,363,121.41 $218,250.00 $4,581,371.41 $4,674,599.80 $230,375.00 $4,904,974.80 PreK Funding $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Title I $0.00 $90,000.00 $120,000.00 $150,000.00 $180,000.00 $190,000.00 Title III $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 IDEA B $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 USDA - SNP $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Other Income Contributions & Gifts School Fundraising Charter School Startup Grant Interest Income $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $2,285,388.58 $10,157.28 $3,088,910.04 $10,296.37 $3,914,076.49 $10,437.54 $4,761,371.41 $10,580.83 $5,094,974.80 $10,726.26 Personnel Salaries Principal Assistant Principals/Deans Operations Office/Clerical Social Worker Guidance Other Non-Instructional Teachers Educational Aides/Interventionists Total Salaries $45,000.00 $0.00 $0.00 $15,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $60,000.00 $90,000.00 $60,000.00 $30,000.00 $60,000.00 $0.00 $27,500.00 $0.00 $780,000.00 $50,000.00 $1,097,500.00 $91,350.00 $121,800.00 $30,450.00 $60,900.00 $0.00 $55,825.00 $0.00 $1,070,825.00 $65,975.00 $1,497,125.00 $92,720.25 $123,627.00 $30,906.75 $61,813.50 $0.00 $113,324.75 $0.00 $1,452,617.25 $169,987.13 $2,044,996.63 $94,111.05 $125,481.41 $31,370.35 $62,740.70 $0.00 $115,024.62 $0.00 $1,683,542.18 $172,536.93 $2,284,807.25 $95,522.72 $127,363.63 $31,840.91 $63,681.81 $0.00 $116,749.99 $0.00 $1,921,068.03 $175,124.99 $2,531,352.07 Benefits Social Security Medicare Health $3,720.00 $870.00 $5,400.00 $68,045.00 $15,913.75 $116,100.00 $92,821.75 $21,708.31 $156,600.00 $126,789.79 $29,652.45 $210,600.00 $141,658.05 $33,129.71 $232,200.00 $156,943.83 $36,704.60 $253,800.00 % SPED Number of SPED Students % ELL Number of ELL Students Staffing Instructional Non-Instructional Total Grant Code REVENUE TOTAL REVENUE Per Student Grant Code EXPENSES Page 301 Memphis School of Excellence Cordova Rev&Exp Pre-Opening Year 2019-2020 $5,400.00 $250.00 $60.00 $96.00 $15,796.00 26.33% Year 1 20202021 $98,775.00 $5,375.00 $1,290.00 $2,064.00 $307,562.75 28.02% Year 2 20212022 $134,741.25 $7,250.00 $1,740.00 $2,784.00 $417,645.31 27.90% Year 3 20222023 $184,049.70 $9,750.00 $2,340.00 $3,744.00 $566,925.94 27.72% Year 4 20232024 $205,632.65 $10,750.00 $2,580.00 $4,128.00 $630,078.41 27.58% Year 5 20242025 $227,821.69 $11,750.00 $2,820.00 $4,512.00 $694,352.12 27.43% Contracted Services Substitute Teachers Nurse Service Well Child Accounting/Payroll Services Audit Services Legal Services Cleaning/Janitorial Services Trash Removal Services Transportation SCS Admin Fee $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $10,725.00 $5,400.00 $0.00 $0.00 $0.00 $60,000.00 $6,000.00 $30,000.00 $35,000.00 $14,625.00 $5,400.00 $0.00 $0.00 $0.00 $60,000.00 $6,000.00 $60,000.00 $35,000.00 $20,475.00 $5,400.00 $0.00 $0.00 $0.00 $60,000.00 $6,000.00 $60,000.00 $35,000.00 $23,075.00 $5,400.00 $0.00 $0.00 $0.00 $60,000.00 $6,000.00 $120,000.00 $35,000.00 $25,675.00 $5,400.00 $0.00 $0.00 $0.00 $60,000.00 $6,000.00 $120,000.00 $35,000.00 TFA Database Fee Phone/Internet Fees Professional Development Contracted Services - SPED Total Contracted Services $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $25,000.00 $5,000.00 $6,000.00 $10,750.00 $15,000.00 $208,875.00 $35,000.00 $5,000.00 $6,000.00 $14,500.00 $15,000.00 $256,525.00 $50,000.00 $5,000.00 $6,000.00 $19,500.00 $15,000.00 $282,375.00 $60,000.00 $5,000.00 $6,000.00 $21,500.00 $15,000.00 $356,975.00 $65,000.00 $5,000.00 $6,000.00 $23,500.00 $15,000.00 $366,575.00 Supplies & Materials Computers (classrooms/labs) Curricular Materials (Textbooks, software) Office Supplies/Copy Papers Testing/Evaluation Copier Janitorial/Cleaning Supplies School Furniture Security Equipment Total Supplies & Materials $20,000.00 $20,000.00 $0.00 $0.00 $0.00 $0.00 $50,000.00 $15,000.00 $105,000.00 $15,000.00 $10,000.00 $10,000.00 $5,000.00 $6,000.00 $8,000.00 $25,000.00 $5,000.00 $84,000.00 $15,000.00 $10,000.00 $10,000.00 $5,000.00 $6,000.00 $8,000.00 $15,000.00 $5,000.00 $74,000.00 $15,000.00 $10,000.00 $10,000.00 $10,000.00 $6,000.00 $8,000.00 $15,000.00 $5,000.00 $79,000.00 $15,000.00 $10,000.00 $10,000.00 $10,000.00 $6,000.00 $8,000.00 $15,000.00 $5,000.00 $79,000.00 $15,000.00 $10,000.00 $10,000.00 $10,000.00 $6,000.00 $8,000.00 $15,000.00 $5,000.00 $79,000.00 Facility Related Expenses Rent/Debt Service Utilities Facility Maintenance Security Services Total Facility Related Expenses $90,000.00 $6,000.00 $6,000.00 $0.00 $102,000.00 $257,621.28 $60,000.00 $20,000.00 $5,000.00 $342,621.28 $254,554.36 $60,000.00 $20,000.00 $5,000.00 $339,554.36 $269,981.89 $60,000.00 $20,000.00 $5,000.00 $354,981.89 $281,349.55 $60,000.00 $20,000.00 $5,000.00 $366,349.55 $287,522.12 $60,000.00 $20,000.00 $5,000.00 $372,522.12 Other Charges Advertisement Insurance Total Other Charges $0.00 $0.00 $0.00 $10,000.00 $15,000.00 $25,000.00 $10,000.00 $15,000.00 $25,000.00 $10,000.00 $15,000.00 $25,000.00 $10,000.00 $15,000.00 $25,000.00 $10,000.00 $15,000.00 $25,000.00 Network Fee $0.00) $189,943.87) $258,227.30) $323,648.76) $411,719.76) $431,570.69) 282,796.00) 2,255,502.89) 2,868,076.97) 3,676,928.21) 4,153,929.97) 4,500,372.00) ($282,796.00) $29,885.68) $220,833.07) $237,148.27) $607,441.44) $594,602.80) State Retirement Unemployment Workers Comp Life Insurance Total Benefits % of salary TOTAL EXPENSES SURPLUS / (DEFICIT) Page 302 MEMPHIS SCHOOL OF EXCELLENCE INTERNAL CONTROL PROCESSES, POLICIES AND PROCEDURES Updated August, 2018 Page 303 1 Page TABLE OF CONTENTS SECTION 1 – INTRODUCTION SECTION 2 – RESPONSIBILITIES 1. –Director 1.1 - Principal 1.2 -Business Manager 1.3 – Front Office secretaries 1.4 - Outside Vendor SECTION 3 – INTERNAL CONTROL PROCESSES AND PROCEDURES 2. – Internal Control Processes and Procedures 2.1 - Checks 2.2 – Payroll Preparation, and Payments 2.3 – Purchasing and Reimbursement Page 304 2 Page SECTION 1 INTRODUCTION Purpose This manual has been prepared to document the Internal Control Processes, Policies and Procedures for Memphis School of Excellence. Its purpose is to ensure that schools’ assets and finances are managed responsibly. Page 305 3 Page SECTION 2 RESPONSIBILITIES 1. – Executive Director & Director of Operations Duties of the Directors:  Approve all requisition forms more than $1,000. Any purchase more than $10,000 requires Board approval.  Sign checks and approve online payments and purchases.  Set the budget development program.  Present the monthly financial reports, Annual Financial Report, Form 990, and audit report to the board.  Approve all Capital Improvement Plans  Review monthly transaction lists for schools and email related documents to accounting firm. 1.1- Principal Duties of the Principal  Approve all requisition forms up to $1,000.  Sign activity fund checks and approve online payments and purchases. 1.2- Staff Position  Business Manager Responsible for the development and control of the school’s budget and daily business operations. Duties of the Business Manager:  Receive collected cash from the secretaries daily with Tabulations of Monies Form, signed by minimum 2 staff.  After receiving the Tabulation of Monies form from the secretaries, review and approve the form.  Fill out deposit slips base on the Tabulation of Monies Form and take deposits to the bank.  Prepare monthly transaction lists for schools‘ accounts and report it to the director. Page 306 4 Page  Calculate monthly gross pays and present them to the Director. After approval, its Business Manager responsibility to send them to the contracted third party accounting firm for preparation of the schools payroll.  Purchase requested and approved items and place orders.  Send approved, stamped, and signed invoices to the accounting firm.  Review and process the Capital Improvement Project and related documents.  Review and process the grant documents and invoices.  Review and process the Payroll and benefits files. 1.3- Front Office Secretaries  Minimum of two secretaries (if needed with Business Manager/Principal) open the mail and distribute it.  Mail the checks to the vendors.  Return the collected cash with the Tabulation of Monies form to the Business Manager/Principal, daily. 1.4- Outside Vendor/ Contracted Third Party Accounting Firm In order to get financial statements prepared in conformity with generally accepted accounting principles and state laws, Memphis School of Excellence outsources financial services from third party accounting firm. This outsourced accounting firm is required to provide following services;  Consult the school in establishing basic financial structure based on district, the state foundation school program, and federal funding.  Enter the transaction list into the accounting system, prepare and review the bank reconciliations and prepare monthly financial statements.  Prepare and cut the A/P checks when requested.  Prepare and process the payroll and tax returns  Record and track the depreciation expenses  Prepare the financial audit documents  Prepare W2 and 1099 forms Page 307 5 Page SECTION 3 2. Main Internal Control Processes and Procedures It is the policy of Memphis School of Excellence to create and maintain accounting, billing, and cash control policies, procedures, and records which are consistent with generally accepted accounting principles, using the accrual basis of accounting and tax exemption 501 (c) (3) that meet the requirements of state and federal statutes, regulations, and governmental reports. 2.1- Checks  Check Writing Procedures; All checks are written through Memphis School of Excellence’s accounts and require two signatures. Individuals generally authorized to sign checks include:  Director  Board President  Principals (Only the Activity Fund Checks)  Check Approval Process This procedure is designed to ensure that all checks have adequate documentation and authorization and that there are no missing checks or checks written to phantom vendors. A copy of each check, plus any other documentation, such as purchase orders, is attached to the invoice, and filed in check number order in the respective Memphis School of Excellence file. Checks which are not deposited within the 180 days of the written date will be voided. Checks are mailed to vendors. If a check is picked up, the person picking up the checks must provide identification which matches the payee on the check or must have verifiable authorization from the payee to pick up the check. There should be two signatures on the vendor invoices. The approved invoice with the “Received [dated], I received that I have firsthand knowledge that the goods/services listed in this invoice have been received by our campus. [Two signatures required (Secretaries, Principal, Directors, Board President)]” stamp should be present on all of the invoices to be paid. Page 308 6 Page 2.2 - Payroll Preparation, and Payment Memphis School of Excellence pays its employees twice a month, usually the last and middle of the business day of the following month. The payroll dates will be published annually during the teacher orientation week. Payroll is prepared from employee data gained from the school’s database which is also reviewed by the director and business manager. Memphis School of Excellence requires all its employees to have a direct deposit. After all employees’ monthly gross salaries’ are prepared by the business manager and approved by the director, approved payroll file will be sent to the outside vendor who sets up and prepares payroll for each employee. When the payroll is ready, the accounting firm starts to make direct deposits with the approval of the director. Employees can access the paystubs, W2s, and W4 forms online through the accounting firm portal. 2.3 - Purchasing and Reimbursements Purchasing Procedures: All requests for purchases must be submitted to the business office with official school’s online google purchase order (PO) form with the appropriate approvals. The online Google Form will be shared with the staff at the beginning of the year. No purchases, charges, or commitments to buy goods or services for the school can be made without a PO number. The school will not reimburse employees or assume responsibility for purchases made without authorization. Employees are not permitted to purchase supplies or equipment for personal use through the schools’ business office. Contact the business office for additional information on purchasing procedures. Reimbursement for Purchases, Travel, Expenses: MSE will honor reimbursement requests only if the expenditure has had prior approval from their supervisors and requested according to established procedures. All reimbursement requests must be submitted with 60 days of the relevant travel or purchase. All requests of this nature must have original receipts attached. Staff members should consult with the Principal or Director regarding matters of this nature in order to prevent misunderstandings, assumptions, etc. Before any travel expenses are incurred by an employee, the employee’s supervisor must give written approval. For approved travel, employees will be reimbursed for mileage and other travel expenditures according to the current rate schedule authorized by the School Board and the Internal Revenue Service if a personal vehicle is used. All employees are entitled to reimbursement up to the per diem rate or the sum of their itemized receipts, whichever is less. Memphis School of Excellence uses federal per Page 309 7 Page diem rates, published at www.gsa.gov to calculate the employees’ allowable hotel, lodging, and meal expenses with the exception of Directors. Employees must submit original receipts to be reimbursed for expenses other than mileage. Memphis School of Excellence prohibits the use of gift cards and debit cards for the disbursement of MSE funds. Non-Reimbursable Expenses: MSE will not reimburse the following expenses.  Any expense unrelated to official MSE business  Meal and lodging expenses incurred more than one night before or after an approved               event/conference/workshop Personal incidental expenses, such as the rental or purchase of a videotape for personal entertainment, dry cleaning, or laundry Expenses solely for the personal convenience of the employee, such as airport express check-ins Expenses for alcoholic beverages Expenses for in-room internet service Expenses for the employee’s spouse, children, or guests Valet parking (unless incurred by a MSE executive officer or director) Excess baggage charges beyond the first bag Transportation or lodging purchased using the employee’s personal accumulated miles, points, or other non-monetary credit, unless the credit belongs to MSE Expenses incurred by or on behalf of another employee or a person who is not employed by Memphis School of Excellence Expenses deemed unreasonable by the employee’s immediate supervisor Any kind of tickets/fines issued by public officers like traffic fines/tickets, toll violations, etc. Un-itemized receipts cannot be used to as a proof of purchase Air flight tickets, hotel and rental car expenses can be only reimbursed after the travel takes place Per Diem rates are limited to IRS’s daily rates cannot be combined for multiple days. Page 310 8 Page Attachment Q Network-Wide Budget The tables below include the consolidated budget for the entire network, the network office (back-office) as well as each school in the MSE network. Memphis School of Excellence: Network-wide Budget Page 311 MEMPHIS SCHOOL OF EXCELLENCE 2019-2020 CASH FLOW STATEMENT NETWORK-WIDE 2019-2020 Fiscal Year (July 1, 2019 - June 30, 2020) July August Budget Budget September October November December Budget Budget Budget January February March April May June Total Budget Budget Budget Budget Budget Budget Budget Budget REVENUE Basic Education Program $0 Title I $0 TOTAL REVENUE $0 Salaries Benefits Total Personnel $731,883 $731,883 $731,883 $731,883 $731,883 $731,883 $731,883 $731,883 $731,883 $0 $109,225 $0 $0 $109,225 $0 $109,225 $731,883 $731,883 $731,883 $731,883 $841,108 $731,883 $731,883 $841,108 $731,883 $109,225 $731,883 $7,646,504 $329,019 $329,019 $329,019 $329,019 $329,019 $329,019 $329,019 $329,019 $329,019 $329,019 $329,019 $329,019 $3,948,233 $91,093 $91,093 $91,093 $91,093 $91,093 $91,093 $91,093 $91,093 $91,093 $420,113 $420,113 $420,113 $420,113 $420,113 $420,113 $420,113 $420,113 $420,113 $420,113 $420,113 $420,113 $5,041,354 $0 $0 $0 $0 $731,883 $7,318,829 $0 $327,675 Per Student EXPENSES Personnel $91,093 $91,093 $91,093 $1,093,121 Contracted Services Substitute Teachers $0 $0 $4,444 $4,444 $4,444 $4,444 $4,444 $4,444 $4,444 $4,444 $4,444 $0 $40,000 Nurse Service Well Child $0 $0 $2,222 $2,222 $2,222 $2,222 $2,222 $2,222 $2,222 $2,222 $2,222 $0 $20,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $60,000 Accounting/Payroll Services Audit Services $20,000 $20,000 Legal Services $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $20,000 Cleaning/Janitorial Services $9,550 $9,550 $9,550 $9,550 $9,550 $9,550 $9,550 $9,550 $9,550 $9,550 $9,550 $9,550 $114,600 Trash Removal Services $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $20,000 Transportation $0 $0 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $0 $120,000 SCS Admin Fee $0 $0 $0 $0 $35,000 $0 $0 $0 $35,000 $0 $0 $0 $70,000 TFA $0 $0 $0 $35,000 $0 $0 $0 $35,000 $0 $0 $0 $0 $70,000 Database Fee $0 $0 $0 $0 $0 $0 $7,500 $0 $0 $7,500 $0 $0 $15,000 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $10,000 Professional Development $417 $2,417 $2,417 $2,417 $2,417 $2,417 $2,417 $2,417 $2,417 $2,417 $2,417 $417 $25,000 Contracted Services - SPED $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $30,000 Total Contracted Services $21,633 $23,633 $43,633 $78,633 $78,633 $63,633 $51,133 $78,633 $78,633 $51,133 $43,633 $21,633 $634,600 $40,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $40,000 Phone/Internet Fees Supplies & Materials Computers (classrooms/labs) Page 312 MEMPHIS SCHOOL OF EXCELLENCE 2019-2020 CASH FLOW STATEMENT NETWORK-WIDE 2019-2020 Fiscal Year (July 1, 2019 - June 30, 2020) Curricular Materials (textbooks, software) July August Budget Budget September October November December Budget Budget Budget Budget January February March April May June Total Budget Budget Budget Budget Budget Budget Budget $50,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $50,000 $917 $917 $917 $917 $917 $917 $917 $917 $917 $917 $917 $917 $11,000 Testing/Evaluation $3,500 $3,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $7,000 Copier $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $25,000 Office Supplies Copy Paper $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $6,000 Janitorial/Cleaning Supplies $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $75,000 School Furniture $70,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $70,000 Security Equipment $21,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $21,000 Total Supplies & Materials $194,250 $13,250 $9,750 $9,750 $9,750 $9,750 $9,750 $9,750 $9,750 $9,750 $9,750 $9,750 $305,000 Rent/Debt Service $81,288 $81,288 $81,288 $81,288 $81,288 $81,288 $81,288 $81,288 $81,288 $81,288 $81,288 $81,288 $975,459 Utilities $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $144,000 Facility Maintenance $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $27,000 Security Services $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $30,000 Total Facility Related Expenses $98,038 $98,038 $98,038 $98,038 $98,038 $98,038 $98,038 $98,038 $98,038 $98,038 $98,038 $98,038 $1,176,459 Advertisement $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $25,000 Insurance $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $48,000 Total Other Charges $6,083 $6,083 $6,083 $6,083 $6,083 $6,083 $6,083 $6,083 $6,083 $6,083 $6,083 $6,083 $73,000 Facility Related Expenses Other Charges TOTAL EXPENSES $740,118 $561,118 $577,618 $612,618 $612,618 $597,618 $585,118 $612,618 $612,618 $585,118 $577,618 $555,618 $7,230,413 SURPLUS / (DEFICIT) -$740,118 $170,765 $154,265 $119,265 $119,265 $243,490 $146,765 $119,265 $228,490 $146,765 -$468,393 $176,265 Beginning Cash Balance Ending Cash Balance $1,500,000 $759,882 $930,647 $1,084,913 $1,204,178$1,323,443 $1,566,933 $1,713,698 $1,832,963 $2,061,454 $2,208,219 $1,739,826 $1,916,091 $416,091 Page 313 MEMPHIS SCHOOL OF EXCELLENCE 2020-2021 CASH FLOW STATEMENT NETWORK-WIDE 2019-2020 Fiscal Year (July 1, 2019 - June 30, 2020) July August September October Budget Budget Budget Budget November December Basic Education Program $0 $1,230,402 Title I $0 $0 TOTAL REVENUE $0 $1,230,402 Salaries $551,686 $551,686 $551,686 $551,686 $551,686 $551,686 $551,686 $551,686 $551,686 $551,686 $551,686 $551,686 Benefits $154,676 $154,676 $154,676 $154,676 $154,676 $154,676 $154,676 $154,676 $154,676 $154,676 $154,676 $154,676 $1,856,112 Total Personnel $706,362 $706,362 $706,362 $706,362 $706,362 $706,362 $706,362 $706,362 $706,362 $706,362 $706,362 $706,362 $8,476,345 Substitute Teachers $0 $0 $6,683 $6,683 $6,683 $6,683 $6,683 $6,683 $6,683 $6,683 $6,683 $0 $60,150 Nurse Service Well Child $0 $0 $3,422 $3,422 $3,422 $3,422 $3,422 $3,422 $3,422 $3,422 $3,422 $0 $30,800 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $100,000 Legal Services $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $20,000 Cleaning/Janitorial Services $17,883 $17,883 $17,883 $17,883 $17,883 $17,883 $17,883 $17,883 $17,883 $17,883 $17,883 $17,883 $214,600 Trash Removal Services $2,667 $2,667 $2,667 $2,667 $2,667 $2,667 $2,667 $2,667 $2,667 $2,667 $2,667 $2,667 $32,000 Transportation $0 $0 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $0 $180,000 SCS Admin Fee $0 $0 $0 $0 $70,000 $0 $0 $0 $70,000 $0 $0 $0 $140,000 TFA $0 $0 $0 $55,000 $0 $0 $0 $55,000 $0 $0 $0 $0 $110,000 Database Fee $0 $0 $0 $0 $0 $0 $10,000 $0 $0 $10,000 $0 $0 $20,000 $1,833 $1,833 $1,833 $1,833 $1,833 $1,833 $1,833 $1,833 $1,833 $1,833 $1,833 $1,833 $22,000 Budget Budget January February March April May June Total Budget Budget Budget Budget Budget Budget Budget REVENUE $1,230,402 $1,230,402 $1,230,402 $1,230,402 $1,230,402 $1,230,402 $1,230,402 $1,230,402 $0 $0 $0 $169,600 $0 $0 $169,600 $0 $0 $169,600 $1,230,402 $12,304,024 $0 $508,800 $1,230,402 $1,230,402 $1,230,402 $1,400,002 $1,230,402 $1,230,402 $1,400,002 $1,230,402 $169,600 $1,230,402 $12,812,824 Per Student EXPENSES Personnel $6,620,233 Contracted Services Accounting/Payroll Services Audit Services Phone/Internet Fees $30,000 $30,000 Professional Development $833 $4,883 $4,883 $4,883 $4,883 $4,883 $4,883 $4,883 $4,883 $4,883 $4,883 $833 $50,500 Contracted Services - SPED $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $60,000 Total Contracted Services $38,217 $42,267 $72,372 $127,372 $142,372 $102,372 $82,372 $127,372 $142,372 $82,372 $72,372 $38,217 $1,070,050 $30,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30,000 Supplies & Materials Computers (classrooms/labs) Page 314 MEMPHIS SCHOOL OF EXCELLENCE 2020-2021 CASH FLOW STATEMENT NETWORK-WIDE 2019-2020 Fiscal Year (July 1, 2019 - June 30, 2020) July August September October Budget Budget Budget Budget November December Budget Budget January February March April May June Total Budget Budget Budget Budget Budget Budget Budget Curricular Materials (Textbooks, software) $30,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30,000 Office Supplies $2,583 $2,583 $2,583 $2,583 $2,583 $2,583 $2,583 $2,583 $2,583 $2,583 $2,583 $2,583 $31,000 Testing/Evaluation $8,500 $8,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $17,000 Copier $3,083 $3,083 $3,083 $3,083 $3,083 $3,083 $3,083 $3,083 $3,083 $3,083 $3,083 $3,083 $37,000 Copy Paper $1,167 $1,167 $1,167 $1,167 $1,167 $1,167 $1,167 $1,167 $1,167 $1,167 $1,167 $1,167 $14,000 Janitorial/Cleaning Supplies $4,833 $4,833 $4,833 $4,833 $4,833 $4,833 $4,833 $4,833 $4,833 $4,833 $4,833 $4,833 $58,000 School Furniture $35,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $35,000 Security Equipment $11,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $11,000 Total Supplies & Materials $126,167 $20,167 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $263,000 Rent/Debt Service $108,386 $108,386 $108,386 $108,386 $108,386 $108,386 $108,386 $108,386 $108,386 $108,386 $108,386 $108,386 $1,300,627 Utilities $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $240,000 Facility Maintenance $3,917 $3,917 $3,917 $3,917 $3,917 $3,917 $3,917 $3,917 $3,917 $3,917 $3,917 $3,917 $47,000 Security Services $3,167 $3,167 $3,167 $3,167 $3,167 $3,167 $3,167 $3,167 $3,167 $3,167 $3,167 $3,167 $38,000 $135,469 $135,469 $135,469 $135,469 $135,469 $135,469 $135,469 $135,469 $135,469 $135,469 $135,469 $135,469 $1,625,627 Advertisement $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $45,000 Insurance $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $78,000 Total Other Charges $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $123,000 TOTAL EXPENSES $1,016,464 $914,514 $936,120 $991,120 $1,006,120 $966,120 $946,120 $991,120 $1,006,120 $946,120 $936,120 $901,964 $11,558,022 SURPLUS / (DEFICIT) -$1,016,464 $315,888 $294,283 $239,283 $284,283 $239,283 Beginning Cash Balance Ending Cash Balance $1,916,091 $899,627 $1,215,515 Facility Related Expenses Total Facility Related Expenses Other Charges $224,283 $433,883 $393,883 $284,283 -$766,520 $328,438 $1,254,802 $1,509,797 $1,749,080 $1,973,363 $2,407,245 $2,691,528 $2,930,810 $3,324,693 $3,608,975 $2,842,455 $3,170,893 Page 315 Network Office (back-office) Revenue Because the network office serves as a support system and provides support services to MSE’s schools, revenue from the network office includes fees from each of the schools (paid through BEP funds). Each school shares in the network office costs based on pro rata enrollment. For example, if a school in the network has 25% of the network’s total enrollment, that school would incur 25% of the network office costs. Page 316 Expenses Staffing The table below details staffing positions and salaries for the network office. Memphis School of Excellence - Network Staff Executive Director Director of Operations Director of Academics Director of Finance Technology Coordinator Power School & Engagement Coordinator Human Resources & Federal Programs Manager Instructional Coach - ELA (6-12) Instructional Coach - Math (6-12) Instructional Coach - Science (6-12) / STEM Coordinator Instructional Coach - Social Studies (6-12) Instructional Coach K-5 RTI Coordinator ESL Coordinator SPED Coordinator Total FTEs Annual Salary 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 $113,300.00 $97,200.00 $75,000.00 $63,000.00 $70,000.00 $60,536.00 $60,000.00 $60,000.00 $60,000.00 $60,000.00 $60,000.00 $60,000.00 $60,000.00 $60,000.00 $60,000.00 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 5 10 1 12 1 13 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 15 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 15 Operational Expenses Other expenses in the network office include: • • • • • • Professional Development – Budgeted at $1,000 per FTE per year. Accounting/Bookkeeeping - $60,000 in 2019-2020; and $100,000 per year in each year thereafter. Audit - $20,000 in 2019-2020; and $30,000 per year in each year thereafter. Legal services - $20,000 per year. Office supplies - $5,000 per year. Office space – The MSE network office will be housed at one of MSE’s schools, so will not incur rent expense. Page 317 REVENUE 325i: Fragrar?: Title TIIJTAL REVENUE EHPE HE E5 Salaries Eer'el'its Contracted Services Supplies 5 Materials :E-Eilit'lu' Related Expenses I:Ither Charges Hath-Curl: Fee TIIJTAL E5 IHEDME School Level Budget Summaries Memphis School of Excellence: Grades K-8 Hickory Hill 25222525 2525-2522 2521-2522 2522-2522 2522-2524 2524-2525 54,22 2,212 55,55 2,422 55,245,555 55,521,225 55,215,522 55,255,2-25 5-2 55 55 55 55 5-2 5252,55-2 5242,455 5242,455 5242,455 5242,455 5242,455 54,455,552 55,152,552 55,155,555 55,222,525 55,255,425 55,445,555 52,544,555 52,5 :5,555 52,222,522 52,245,525 52,252,225 52,224,522 5525,525 5242,522 5222,555 5555,441 5522,252 5252,242 5225,252 5255,555 5255,255 5255,255 5255,255 5255,555 545,552 545,555 542,555 542,555 542,555 542,555 5225,154 522 5,154 522 5,254 522 5,254 522 5,254 522 5,254 525,2 52 52 5,555 525,525 525,5-25 525,5-25 525,5-25 5252,2 52 5222,552 5522,512 5522515 552 4,442 552 5,522 54,555,555 54,244,422 55,154,552 55,525,522 55,214,452 55,255,252 5242.522 51,152,522 522552.255 5545,552 5545,5152 5552, 242 Page 318 REVENUE 3210i: E::lu:e :i0n Prugrer? Title TIIJTAL HE'lul'El'll-IE EHPE HE E5 Eel-0 ries 3er' e?ts Contracted Services Supplies 01 Materials Zaeilitllr Related Expenses IElt her Charges Hetwerk Fee TIIJTAL EHPE HE E5 INCDME Memphis School of Excellence: Grades 9-12 Hickory Hill 1019-1321] 05,002,01225 $1 50,020-00 $5,252,442.20 $1,502,520.00 $522, 540-5 0 $200,100.00 $45,000.00 $222,500-00 $50,000.00 $200, 22 2-02 $2,022,000.40 $000,000.00 EDIE-21111 02,505,540-00 $100,400.00 $2.405.240.00 $1,204,220-00 $5 40,051.20 $20 0,000.00 $40,000.00 $222,550.00 $5 0,000.00 $211,002.04 $2,452,020.04 $00,220.00 1011-2022 02, 000,5 00.05 $111,000-00 $2,010,100.05 205,200.00 $540,010-40 $200,000.00 $45,000.00 $222,500-00 $50,000.00 $240,101-50 $2,405,502.02 $520,200.22 l?lE?E?lli 02,252,5 21.54 $111,000-00 $2,040,021.54 $1,550,400.05 $500,402-05 $200,000.00 $45,000 .00 $222,500-00 $50,000 .00 $240,204-02 $2,042,200.04 204.20 1023-20211 02,220,20201 $111,000. 00 $2,000,0 02.01 $1,505,400.02 $505,055.24 $25 0,000. 00 $45,000-00 $222,505.00 $5 0,000-00 $250,200. 20 $00,040.41 $505,512.00 02,010,25522 $111,000.00 $2,020,550.22 $1,520,025.20 $502,210.00 $200,000.00 $40,000.00 $222,500.00 $5 $205,401.00 $2,000,002.00 $521,542.42 Page 319 Memphis School of Excellence Elementary Cordova Detailed budget assumptions have been included in Attachment O in the MSE Elementary Cordova application. Page 320 Memphis School of Excellence Cordova Detailed budget assumptions have been included in Attachment O. Page 321 Attachment R: Student Achievement/Growth Results Post- Sec:ondary Graduatio Pro?ciency Rates ACT Enrollment Rate State Report Card College 8: Stu dent Ch ronically Achievement rowth Career Climate Z?year Z?year Z?year Z?year Z?yea Z?year Z?year Academic Academic Out of Progress Rea dy rad. Cha rter School Com p. Com p. Category Category Category Category Com p. CompComp. Comp. Comp. Achievement rowth School ELL Prof. Era duate Rate Memphis Rise Acad emy 4. 50 4.48 5.00 4.00 4.55 4.3 3 5 5 23.Freedom Prepa ratory Acad emy 4.45 4.38 4. ?5 3.5? 4.?5 5.00 5 5 21.1% 20.9% 51.4% 21.5% 19.4 90.Power Center Academy Middle 3.4? 4.28 4.25 4.13 NA 4.5? 1 5 14.0% 24.3% 43.Soulsvi ll Ch arter 4.11 4.19 4. ?5 3.1? NA 4.5? 5 5 12.1% 53.2% 22. 5% 19. 2 98.1% 1.0 4.0 4.0 NA 4.0 4.0 Memphis Academy of Sci en ce 8 Engineering 4.51 4.11 4.50 3.51 4.50 4.5? 5 1 12.3% 2% 15.1% 1?.0 59.0% 92. 0.4 1.8 2.0 4.0 3.0 4.0 Memphis School of Excellence 4. 25 3.95 4. ?5 3.00 NA 3.33 5 3 15.57.0% 98.8% 0.0 1.1 3.9 1.0 4.0 4.0 Memphis Grizzlies Preparatory 4.03 3.83 4.00 3.?5 NA 3.5? 5 5 12.2% 19.1% 51.5% 44.Southwest Ea rly College High NA 3.?5 3. 25 4.40 4.00 3.3 3 NA 5 1.City niversity 2. ?9 3.44 2. 50 3.3 3 3.00 4.3 3 1 5 2.1% 12. 1% 23.1% 3.8% 15.4 5% 2.4 3.5 4.0 NA 2.0 4.0 Memphis Business Academy High 3.?2 3.23 3.50 2.1? NA 4.00 3 1 4.4% 15.1% 25.1% 13.5% 1?.2 50.0% 0.0 0.4 2.8 2.0 0.4 4.0 Memphis Academy of Health Sciences 2.30 3.04 1.?5 3.59 NA 4.33 1 5 5.5% 8.1% 40.Kaleidoscope School of Memphis NA 2.98 2. ?5 2.20 NA 5.00 NA 2 5.8% 18. 2% 48.9% 11.KIPP Memphis Collegiate High 3.2? 2.95 3.00 2.28 4.25 4.00 3 1 4.9% 11. 1% 18.9% 8.5% 1?.4 1.0 0.0 NA 0.0 2.2 Power Center Academy High 2.53 2.85 2. ?5 1.44 2.33 4.33 1 1 4.4% 11.4% 20.0% 4.5% 18.4 98.3% 1.0 0.5 0.0 0.8 1.4 4.0 Memphis Academy of Health Sciences High 3.50 2.?9 3.00 2.22 3.50 3.5? 4 1 3.4% 12.5% 21.1% 5.9% 1?.1 55.0% 89.2% 0.0 0.3 4.0 NA 0.0 4.0 KIPP Memphis Middle Academy 2.23 2.?3 2.50 3.00 NA 2.5? 1 5 10.1% 34.9% 22.City University School Girls Prep 2.1? 2.54 1.25 3.19 NA 4.33 1 4 4.5% 11. 1% 4.DuBois Middle? Leadership 81 Public Policy 1.83 2.54 1.50 3.19 NA 3.33 1 3 2.3% 11.DuBois High - Leadership 8i Public Policy 0.5% 5.8% 20.DuBois High Arts 3t Technology 0.8% 14.Veritas College Preparatory 2.4? 2.48 2.00 2.38 NA 3.5? 2 4 8.1% 28. 5% 13.Memphis Busin ess Acad emy 3 . 2? 2.48 2. ?5 1.94 NA 3.00 3 1 14.9% 13 41. 11.City University School Boys Prep 2. 23 2.44 1. ?5 2.19 NA 4.33 1 2 14.2% 25.City University School of Independence 2.80 2.25 2. 25 1.85 4.?5 3.5? 2 2 0.0% 8.8% 35.0% 5.Power Center Academy Middle School South east 2.30 2.23 2. 50 1.55 NA 3.00 1 1 12.8% 15.5% 34.5% 10.KIPP Memphis Collegiate Middle 2.?3 2.19 1.?5 2.55 4.50 2.33 4 5 9.5% 8.2% 39.0% 8.DuBois Middle? Arts 81 Technology 2.0? 2.09 1. 25 2.31 NA 3.33 2 4 2.1% 3.3% 28.0% 2.Excel Center 1.58 1.89 1.00 1.83 NA 4.33 1 1 0.0% 3.9% 1.8% 0.9% 11Gateway University NA 1.54 1.00 1.50 NA 4.33 NA 1 0.0% 1.Page 322 Page 323 9 Northwest Prep Academy I 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% Gateway University I Trezevant High Excel Center - Hamilton High - B. T. Washington High - Melrose High - DuBois High - Leadership Public Policy Douglass High Kirby High Mitchell High Oakhaven High DuBois High - Arts at Technology Sheffield High Manassas High Westwood High City University School of Independence Raleigh-Egypt High Wooddale High KIPP Memphis Collegiate High Southwest Early College High Power Center Academy High Ridgeway High Craigmont High City University Kingsbury High Memphis Academy of Health Sciences High Southwind High East High Memphis Business Academy High Bolton High Memphis Academy of Science Cordova High Soulsville Charter Overton High Whitehaven High Freedom Preparatory Academy I Memphis School of Excellence Legacy Leadership Academy Memphis Rise Academy Central High Germantown High Hollis F. Price Middle College High White Station High Middle College High English Language Arts Proficiency 2 Year Composite Scores (2016-2018) Memphis Scheel of Excellence WAAS Scores: 2013-2013 2013-2014 2014-2015 2015-2015 2015-201? 201?-2013 Page 324 Memphis School of Excellence ACT Scores 2013-2014 2014-2015 2015-2016 2016-201? EDIT-2013 ?I?Memphis School of Excellence Page 325 Page 326 B. T. Washington High Bolton High Douglass High Excel Center Hamilton High Hollis F. Price Middle College.. Ma nassas High Melrose High Mitchell High Northwest Prep Academy Dakhaven High Raleigh-Egypt High Sheffield High Trezevant High Westwood High Wooddale High City University Kirby High Kingsbury High MAHS High East High Craigmont High MBA High Southwind High KIPP Memphis Collegiate High Ridgeway High Dverton High MASE Cordova High Whitehayen High Power Center Academy High Freedom Preparatory.. Central High Memphis School of Excellence Soulsyille Charter Germantown High White Station High Middle College High 0.0% 10.0% 20.0% 30.0% 50.0% 60.0% T0095 Ready Graduate Percentage School Name Memphis School of Excellence Middle and High School Memphis School of Excellence Elementary School Year Opened City State Grades Served Total Enrollment 2010 Memphis TN 6-12 510 2017 Memphis TN K-5 165 Page 327 Demographics and Socioeconomics % African American % Hispanic % White % Other Race/ Ethnicity % FRPL 63% 35% 0 2% 95% 62% 38% 0 0 95% % SPED 4.20% % ELL 8.36% 2% 16.70% Page 328 School Contact Info Contact Name Contact Title Contact Email Contact Phone Muhammet Turkay Executive Director mturkay@sememphis.org 901-491-6854 Muhammet Turkay Executive Director mturkay@sememphis.org 901-491-6854 Page 329 Authorizer Contact Information Authorizing Organization Contact Name Contact Title Shelby County Schools Daphne Robinson Director of Charter Schools Shelby County Schools Daphne Robinson Director of Charter Schools Page 330 on Contact Email Contact Phone ROBINSOND5@scsk12.org 901-416-5321 ROBINSOND5@scsk12.org 901-416-5321 Page 331 Attachment U: School Financials Refer Attachment L: Network Annual Audits for last two audited financial statements. Page 332 READ FOUNDATION dba MEMPHIS SCHOOL OF EXCELLENCE FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION JANUARY 31, 2019 Page 333 FINANCIAL STATEMENTS Page 334 Whitehorn Tankersley & ~ Davis, PllC CERTIFIED PUBLIC ACCOUNTANTS 670 Oakleaf Office Lane Memphis, TN 38117-4811 (901) 767-5080 • (901) 767-5263 FAX www.wtdcpa.com ACCOUNTANT'S COMPILATION REPORT The Board of Directors Read Foundation dba Memphis School of Excellence Menrrphis, Tennessee Management is responsible for the accompanying financial statements of Read Foundation, Inc. (a nonprofit organization) which comprise the Statement of Net Position·· as of January 31, 2019 and the related Statenrrents of Activities - Actual and Budgeted for the month and the year to date periods then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying fmancial statements, nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by nrranagement. Accordingly, we do not express an opinion, a conclusion, nor provide any form of assurance on these financial statements. Accounting principles generally accepted in the United States of America require that capital assets which have future value and use be capitalized on the statenrrent of net position and have depreciation recorded in the statements of activities. The organization capitalizes its current year capital asset additions and records depreciation expense in connection with its annual audit. In addition, categories of net position are required to be presented for each period presented. The organization chooses to adjust these categories of net position only in connection with its annual audit. Also, deferred inflows and outflows related to pension assets and liabilities are adjusted only in connection with the annual audit. Management has not determined the effects of these departures on the fmancial statements. Management has elected to omit substantially all of the disclosures required by accounting principles generally accepted in the United States of America. If the omitted disclosures were included in the financial statenrrents, they might influence the user's conclusions about the organization's financial position and changes in net assets. Accordingly, these financial statements are not designed for those who are not informed about such matters. AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AICPA DIVISION OF FIRMS: PRIVATE COMPANIES PRACTICE SECTION TENNESSEE SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS Page 335 The accompanying budgeted statements of activities for the month ended January 31, 2019 and for the year ending June 30, 2019 and the schedules of activities- actual and budgeted by school are presented for purposes of additional analysis and are not a required part of the basic financial statements. This information is the responsibility of management. The information was not subject to our compilation engagement. We have not audited or reviewed the supplementary budgeted information and, accordingly, we do not express an opinion, a conclusion, nor provide any form of assurance on such supplementary information. Management has elected to omit the summaries of significant assumptions and accounting policies required under established guidelines for presentation of prospective financial statements. If the omitted summaries were included with the annual budgeted information, they might influence the user's conclusions abut Read Foundation dba Memphis School of Excellence's budgeted information. Accordingly, this budgeted information is not designed for those who are not informed about such matters. We are not independent with respect to Read Foundation, Inc. March 4, 2019 Memphis, Tennessee Page 336 READ FOUNDATION MEMPHIS SCHOOL OF EXCELLENCE STATEMENT OF NET POSITION As of January 31, 2019 ASSETS CURRENT ASSETS Cash in Bank-Checking Cash in Bank-Activity Fund Accounts Receivable Prepaid Insurance Prepaid Rent Prepaid Expenses $ 1,622,365.16 33,118.96 1,952.46 16,967.94 54,852.56 165.07 Total Current Assets 1 729 422.15 CAPITAL ASSETS Building 2,139,929.67 Land 779,900.00 Furniture & Equipment-G&A Accum Depr-Furniture & Equipment-G&A 119,161.81 Accum Depr - Building (50,297.00) Building Improvements (81,993.03) 2,567,331.81 Accum Depr-Leasehold Improvement Furniture, Fixtures & Equipment (1 ,464,345.09) 369,709.68 Accum Depr-F&E-Instruction (206,912.01) Food Service Equipment 15,620.77 Accum Depr-F &E-Food Service (6.784.31 ) Net Capital Assets 4 181 322.30 OTHER ASSETS Prepaid Security Deposit Net Pension Asset 77.606.00 Total Other Assets 127 606.00 50,000.00 DEFERRED OUTLOWS OF RESOURCES-PENSION TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 433 947.00 $ 6.472.297.45 See Accountant's Compilation Report Page 337 READ FOUNDATION MEMPHIS SCHOOL OF EXCELLENCE STATEMENT OF NET POSITION As of January 31, 2019 LIABILITIES AND NET POSITION CURRENT LIABILITIES Accounts Payable Income Tax WH & Unpaid State Income Tax Withheld Social Security Tax Medicare Tax Retirement-TCRS Retirement-Hybrid 401 (k) Contributions Roth 401(k) After Tax Insurance Deductions Current Portion-Regions Construction Loan Current Portion of Regions Promissory Note Current Portion of Regions Loan for HS Gym 30,230.54 (102.66) 855.13 (115.22) (26.94) 50,282.81 5,345.41 861.85 107.29 (254.86) 55,997.00 15,608.86 18 148.42 Total Current Liabilities 176 937.63 LONG-TERM LIABILITIES Mortgage Payable-Regions Regions Promissory Note 1,553,983.63 37,071.80 Regions-Loan for HS Gym Building Work 55,433.33 Total Long-Term Liabilities 1646 488.76 Total Liabilities 1,823.426.39 DEFERRED INFLOWS OF RESOURCES-PENSION 209,192.00 NET POSITION Investment in Capital Assets, net 2,445,079.26 Restricted 121,985.57 Unrestricted 1,287,022.70 Change in Net Position 585.591.53 Total Net Position 4 439 679.06 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION 6 472 297.45 See Accountant's Compilation Report Page 338 READ FOUNDATION dba MEMPIDS SCHOOL OF EXCELLENCE STATEMENTS OF ACTIVITIES- ACTUAL AND BUDGETED 1 Month Ended 1 Month Ended 7 Months Ended January 31, 2019 Actual January 31, 2019 Budget January 31, 2019 Actual Annual Budget Budget Variance Revenues Community Services-Day Care Lease/Rentals Sale of Materials & Supplies Contributions & Gifts Other Local Revenue Basic Education Program Other State Grants Other State Revenues Title I - Grants to Local Education Agencies Total Revenue $ -$ 416.67 $ 1,646.00 $ 5,000.00 $ (3,354.00) - 8,000.00 - 96,000.00 (96,000.00) 3,830.40 5,166.67 59,055.22 62,000.00 (2,944.78) - 208.34 - 2,500.00 (2,500.00) 780.00 - 3,597.08 - 633,251.68 502,283.92 3,574,986.10 6,027,407.00 (2,452,420.90) - 38,028.67 - 456,344.00 (456,344.00) 28,700.00 19,250.01 526,764.28" 231,000.00 295,764.28 - 23,272.84 134!333.28 279,274.00 (144,940.72) 666,562.08 596,627.12 4,300,381.96 7,159.525.00 (2,~143.04) 33,175.26 24,395.24 205,583.12 292,743.00 87,159.88 190,884.17 219,370.75 1,166,407.82 2,632,449.00 1,466,041.18 5,250.00 5,250.00 36,765.00 63,000.00 26,235.00 9,975.92 9,975.91 61,280.52 119,711.00 58,430.48 16,750.00 10,125.00 103,320.00 121,500.00 18,180.00 10,000.00 5,000.00 60,075.00 60,000.00 (75.00) 9,581.82 15,416.66 70,444.52 185,000.00 114,555.48 1,701.18 - 4,252.95 - 233.33 - 2,800.00 2,800.00 2,379.50 2,500.00 14,352.00 30,000.00 15,648.00 3,597.08 Program Expenses Principal Teachers Accountants/Bookkeepers Guidance Personnel Assistant Principal Assistant Principal Secretary Educational Assistants Bonus Payments Other Salaries & Wages Social Security State Retirement Medical Insurance Dental Insurance Unemployment Compensation Employer Medicare Other Fringe Benefits Advertising Audit Services - (4,252.95) 16,271.58 18,530.16 101,732.09 222,362.00 120,629.91 32,345.50 29,435.73 177,319.38 353,229.00 175,909.62 24,470.41 13,799.49 211,104.14 165,594.00 (45,510.14) 222.61 93.16 3,302.61 1,118.00 (2,184.61) 2,745.23 854.41 4,275.82 10,253.00 5,977.18 3,805.47 3,474.49 23,792.24 41,694.00 17,901.76 36.86 25.00 1,269.96 300.00 2,038.50 4,166.66 5,570.06 50,000.00 - 1,641.66 19,700.00 19,700.00 See Accountant's Compilation Report (969.96) 44,429.94 Page 339 READ FOUNDATION dba MEMPIDS SCHOOL OF EXCELLENCE STATEMENTS OF ACTIVITIES- ACTUAL AND BUDGETED Communication Contracts with Other School Systems Data Processing Services Data Processing Services Dues & Memberships Janitorial Services Operation Lease Payments Legal Services Maintenance & Repair Serv-Building Maintenance & Repair Services-Building Maintenance & Repair Serv-Equipment Payments to Schools-Lunch Postal Charges Rentals Travel Disposal Fees Contracts for Substitute Teachers-Non-certified Other Contracted Services Other Contracted Services Plant Oper-Electricity Instructional Supplies & Materials Office Supplies Textbooks Other Supplies & Materials Liability Insurance Premium on Corporate Surety Bonds Workers' Compensation Insurance Workers' Compensation Insurance In Services/Staff Development Other Charges Interest on Notes Administrative Equipment Building Construction 1 Month Ended 1 Month Ended 7 Months Ended January 31, 2019 Adual January 31, 2019 Budget January 31, 2019 Actual Annual Budget Budget Variance 378.46 2,083.33 7,337.34 25,000.00 17,662.66 - 2,916.66 - 35,000.00 35,000.00 - 83.33 770.00 1,000.00 230.00 - 84.00 - (84.00) 105.00 70.82 6,105.46 850.00 (5,255.46) 9,640.00 11,791.66 67,480.00 141,500.00 74,020.00 - - (0.18) - 0.18 2,916.66 4,353.00 35,000.00 30,647.00 10,681.00 - 87,445.36 - (87,445.36) - 5,000.00 - 60,000.00 60,000.00 - 416.66 - 5,000.00 5,000.00 - 83.33 - 1,000.00 1,000.00 500.00 2,916.66 1,300.00 35,000.00 33,700.00 46,275.30 57,570.16 322,564.68 690,842.00 368,277.32 724.08 12,916.65 76,102.66 155,000.00 78,897.34 929.16 1,000.00 6,463.40 12,000.00 5,536.60 - 4,166.66 - 50,000.00 50,000.00 24,709.53 16,867.81 149,902.79 202,414.00 - (37,000.00) 156,000.00 83,630.94 (94,627.58) 52,511.21 - - 9,327.50 13,000.00 37,000.00 72,369.06 936.66 7,083.33 179,627.58 85,000.00 72.96 166.66 7,075.66 2,000.00 (5,075.66) - 8,750.00 41,713.94 105,000.00 63,286.06 8,813.14 12,916.66 37,763.95 155,000.00 117,236.05 2,603.01 448.00 15,618.06 5,376.00 (10,242.06) 187.50 482.83 787.50 5,794.00 5,006.50 1,825.81 1,510.41 8,897.04 18,125.00 9,227.96 (11,125.11) - - 11,125.11 - 4,385.44 4,583.33 18,891.42 55,000.00 36,108.58 19,497.69 29,456.48 147,456.79 353,478.00 206,021.21 6,800.05 8,750.00 47,772.06 105,000.00 57,227.94 - - 1,503.07 - (1,503.07) - 7,500.00 12,000.00 90,000.00 78,000.00 See Accountant's Compilation Report Page 340 READ FOUNDATION dba MEMPIDS SCHOOL OF EXCELLENCE STATEMENTS OF ACTIVITIES- ACTUAL AND BUDGETED Building Improvements Furniture & Fixtures Regular Instruction Equipment Total Program Expenses Change in Net Position $ 1 Month Ended 1 Month Ended 7 Months Ended January 31, 2019 Actual January 31,2019 Budget January 31, 2019 Actual Annual Budget Budget Variance - 5,224.41 - 62,693.00 62,693.00 - - 64,728.33 - (64,728.33) 7,198.50 11.666.66 10,005.12 140,000.00 129,994.88 517,224.80 596,626.81 3,714,790.43 7,159,525.00 3,444,734.57 - 585,591.53 149,337.28 $ 0.31 $ See Accountant's Compilation Report 585,591.53 $ Page 341 SUPPLENIENTAL INFORMATION Page 342 READ FOUNDATION dba MEMPIDS SCHOOL OF EXCELLENCE SCHEDULE OF ACTIVITIES -ACTUAL AND BUDGETED MIDDLE & IDGH SCHOOL 1 Month Ended 1 Month Ended 7 Months Ended January 31, 2019 January 31, 2019 January 31, 2019 Annual Actual Budget Actual Budget Budget Variance Revenues Sale ofMaterials & Supplies $ 3,830.40 $ 4,166.67 $ 49,601.63 $ 50,000.00 $ (398.37) Contributions & Gifts - Other Local Revenue 780.00 - 3,597.08 - 438,682.93 431,581.17 2,628,401.12 5,178,974.00 22,300.00 17,333.34 129,000.00 208,000.00 (79,000.00} - 20,907.67 99,333.28 250,892.00 (151,558.72) 465,593.33 474,155.52 2,909,933.11 5,689,866.00 (2,779,932.89} Basic Education Program Other State Revenues Title I - Grants to Local Education Agencies Total Revenue 166.67 - 2,000.00 (2,000.00} 3,597.08 (2,550,572.88) Program Expenses Principal Teachers Accountants/Bookkeepers Guidance Personnel Assistant Principal Secretary Bonus Payments Other Salaries & Wages Social Security State Retirement Medical Insurance Dental Insurance Unemployment Compensation Employer Medicare Other Fringe Benefits Advertising Audit Services Communication Data Processing Services Dues & Memberships Janitorial Services Operation Lease Payments 21,346.05 17,026.58 116,140.61 204,319.00 88,178.39 140,716.41 179,995.75 866,069.58 2,159,949.00 1,293,879.42 4,593.75 5,250.00 36,108.75 63,000.00 26,891.25 5,250.00 5,250.00 32,925.00 63,000.00 30,075.00 16,750.00 10,125.00 103,320.00 121,500.00 18,180.00 9,581.82 12,916.66 61,531.30 155,000.00 93,468.70 - 233.33 2,800.00 2,500.00 - 2,800.00 - 30,000.00 30,000.00 11,494.30 14,756.08 71,615.75 177,073.00 105,457.25 23,115.08 23,382.24 127,635.41 280,587.00 152,951.59 17,319.38 10,299.49 146,787.22 123,594.00 (23,193.22) 1,753.43 1,118.00 (635.43} 48.62 93.16 1,941.91 620.33 2,952.75 7,444.00 4,491.25 2,688.22 2,766.83 16,748.90 33,202.00 16,453.10 (466.65} 17.48 25.00 766.65 300.00 1,867.01 2,500.00 3,622.87 30,000.00 26,377.13 - 1,083.33 19,700.00 13,000.00 (6,700.00) 378.46 1,250.00 6,521.43 15,000.00 8,478.57 - 83.33 770.00 1,000.00 230.00 105.00 29.16 5,525.28 350.00 (5,175.28) 7,640.00 9,166.66 50,450.00 110,000.00 59,550.00 - - (0.18) See Accountant's Compilation Report - 0.18 Page 343 READ FOUNDATION dba MEMPHIS SCHOOL OF EXCELLENCE SCHEDULE OF ACTIVITIES -ACTUAL AND BUDGETED MIDDLE & HIGH SCHOOL Legal Services Maintenance & Repair Serv-Building Maintenance & Repair Services-Building Maintenance & Repair Serv-Equipment Payments to Schools-Lunch Postal Charges Rentals Travel Disposal Fees Contracts for Substitute Teachers-Non-certified Other Contracted Services Other Contracted Services Plant Oper-Electricity Instructional Supplies & Materials Office Supplies Textbooks Other Supplies & Materials Liability Insurance Premium on Corporate Surety Bonds Workers' Compensation Insurance Workers' Compensation Insurance In Services/Staff Development Other Charges Interest on Notes Administrative Equipment Building Construction Building Improvements Furniture & Fixtures Regular Instruction Equipment 1 Month Ended 7 Months Ended January 31,2019 Adual January 31, 2019 Budget January 31, 2019 Actual $ Annual Budget Budget Variance - 2,500.00 4,353.00 30,000.00 25,647.00 9,477.41 - 76,790.86 - (76,790.86) - 5,000.00 - 60,000.00 60,000.00 5,000.00 5,000.00 416.66 - 83.33 - 1,000.00 1,000.00 - 1,666.66 150.00 20,000.00 19,850.00 46,275.30 47,570.16 322,564.68 570,842.00 248,277.32 531.17 8,749.99 52,530.78 105,000.00 52,469.22 929.16 1,000.00 4,044.48 12,000.00 7,955.52 - 4,166.66 - 50,000.00 50,000.00 23,608.98 14,999.98 118,298.74 180,000.00 61,701.26 - - 19,500.00 - (19,500.00) 9,327.50 10,000.00 70,373.06 120,000.00 49,626.94 809.72 5,000.00 19,900.11 60,000.00 40,099.89 72.96 - 2,811.76 - - 5,000.00 4,048.29 60,000.00 55,951.71 2,890.15 7,500.00 13,194.85 90,000.00 76,805.15 1,301.51 223.00 7,809.06 2,676.00 (5,133.06) 187.50 274.50 1,010.41 787.50 - 3,294.00 12,125.00 2,506.50 12,125.00 - 5,562.57 - (5,562.57) - Total Program Expenses Change in Net Position 1 Month Ended (2,811.76) 675.44 3,458.33 8,179.26 41,500.00 33,320.74 19,289.18 28,041.65 136,159.96 336,500.00 200,340.04 6,800.05 8,750.00 47,772.06 105,000.00 57,227.94 - - 1,503.07 - (1,503.07) 7,500.00 12,000.00 90,000.00 78,000.00 - 5,224.41 - 62,693.00 62,693.00 - - 7,196.00 - (7,196.00) 7,198.50 6,666.66 7,393.38 80,000.00 72,606.62 394,228.02 474,155.33 2,613,868.22 5,689,866.00 3.075,997.78 - 296,064.89 71 ,365.31 $ 0.19 $ See Accountant's Compilation Report 296,064.89 $ Page 344 READ FOUNDATION dba MEMPHIS SCHOOL OF EXCELLENCE SCHEDULE OF ACTIVITIES -ACTUAL AND BUDGETED ELEMENTARY SCHOOL 1 Month Ended 1 Month Ended 7 Months Ended January 31, 2019 Actual January 31,2019 Budget January 31, 2019 Actual Annual Budget Budget Variance Revenues Community Services-Day Care $ 416.67 $ -$ 1,646.00 $ 5,000.00 $ (3,354.00) Lease/Rentals 8,000.00 - 96,000.00 (96,00Q.OO) Sale of Materials & Supplies 1,000.00 9,453.59 12,000.00 (2,546.41) 41.67 - 500.00 (500.00) Contributions & Gifts Basic Education Program 194,568.75 Other State Grants Other State Revenues 6,400.00 Title I - Grants to Local Education Agencies Total Revenue _ _ _ _2_00 ~ ,9_68_.7_5 70,702.75 946,584.98 848,433.00 98,151.98 38,028.67 - 456,344.00 (456,344.00) 1,916.67 397,764.28 23,000.00 374,764.28 2,365.17 35,000.00 28,382.00 6,618.00 &--·.471.60 . 1,390,448.85 1,469,659.00 (79,210.15) 1?? Program Expenses Principal Teachers Accountants/Bookkeepers Guidance Personnel Assistant Principal Secretary Educational Assistants Other Salaries & Wages Social Security State Retirement Medical Insurance Dental Insurance Unemployment Compensation Employer Medicare Other Fringe Benefits Advertising Audit Services Communication Contracts with Other School Systems Data Processing Services 11,829.21 7,368.66 89,442.51 88,424.00 (1,018.51) 50,167.76 39,375.00 300,338.24 472,500.00 172,161.76 656.25 - 656.25 - 4,725.92 4,725.91 28,355.52 56,711.00 5,000.00 60,075.00 60,000.00 (75.00) 2,500.00 8,913.22 30,000.00 21,086.78 10,000.00 (656.25) 28,355.48 1,701.18 - 4,252.95 2,379.50 - 14,352.00 - 4,777.28 3,774.08 30,116.34 45,289.00 15,172.66 9,230.42 6,053.49 49,683.97 72,642.00 22,958.03 7,151.03 3,500.00 64,316.92 42,000.00 (22,316.92) 173.99 - 1,549.18 - (1,549.18) (4,252.95) (14,352.00) 803.32 234.08 1,323.07 2,809.00 1,485.93 1,117.25 707.66 7,043.34 8,492.00 1,448.66 19.38 - 503.31 - 171.49 1,666.66 1,947.19 20,000.00 (503.31) 18,052.81 558.33 - 6,700.00 6,700.00 833.33 815.91 10,000.00 9,184.09 - 35,000.00 35,000.00 84.00 - (84.00) 2,916.66 See Accountant's Compilation Report Page 345 READ FOUNDATION dba MEMPHIS SCHOOL OF EXCELLENCE SCHEDULE OF ACTIVITIES -ACTUAL AND BUDGETED ELEMENTARY SCHOOL Dues & Memberships Janitorial Services Legal Services Maintenance & Repair Serv-Building Postal Charges Rentals Travel Disposal Fees Other Contracted Services Other Contracted Services Plant Oper-Electricity Instructional Supplies & Materials Office Supplies Textbooks Other Supplies & Materials Liability Insurance Premium on Corporate Surety Bonds Workers' Compensation Insurance Workers' Compensation Insurance In Services/Staff Development Other Charges Furniture & Fixtures Regular Instruction Equipment Total Program Expenses Change in Net Position $ 1 Month Ended 1 Month Ended 7 Months Ended January 31, 2019 Adual January 31, 2019 Budget January 31, 2019 Actual Annual Budget Variance Budget - 41.66 580.18 500.00 (80.18) 2,000.00 2,625.00 17,030.00 31,500.00 14,470.00 - 416.66 - 5,000.00 5,000.00 1,203.59 - 10,654.50 - (1 0,654.50) 500.00 1,250.00 1,150.00 15,000.00 13,850.00 - 10,000.00 - 120,000.00 120,000.00 192.91 4,166.66 23,571.88 50,000.00 26,428.12 - - 2,418.92 - (2,418.92) 1,100.55 1,867.83 31,604.05 22,414.00 (9,190.05) - - 17,500.00 - (17,500.00) - 3,000.00 1,996.00 36,000.00 34,004.00 126.94 2,083.33 159,727.47 25,000.00 (134,727.47) - 166.66 4,263.90 2,000.00 (2,263.90) 3,750.00 37,665.65 45,000.00 7,334.35 5,922.99 5,416.66 24,569.10 65,000.00 40,430.90 1,301.50 225.00 7,809.00 2,700.00 (5,109.00) - 208.33 - 2,500.00 2,500.00 1,825.81 500.00 8,897.04 6,000.00 (2,897.04) (5,562.54) 2,787.84 - - 5,562.54 3,710.00 1,125.00 10,712.16 13,500.00 208.51 1,414.83 11,296.83 16,978.00 5,681.17 - - 57,532.33 - (57,532.33) - 5,000.QO 2,611.74 60,000.00 57,388.26 122,996.78 122,471.48 1,100.922.21 1,469,659.00 368,736.79 - 289,526.64 77,971.97 $ 0.12 $ See Accountant's Compilation Report 289,526.64 $ Page 346 Memphis School of Excellence Memphis, Tennessee A Charter School Proposal Submitted by Read Foundation Rev. December 8, 2009 Page 347 Table of Contents Chapter page Charter Application Information Sheet 3 Assurances Form 4 1. Mission Statement 6 2. Instructional Goals and Methods 22 3. Student Evaluation and Remediation 101 4. Budget 115 5. Financial Audit 116 6. Start-up Timetable 117 7. Rules, Guidelines, and Governance 126 8. Board Members? Data 135 9. Enrollment and Admission 140 10. Student Code of Conduct 144 11. Health and safety compliance 169 12. Human Resources Employee Quali?cations 173 13. Charter Holder Data (the Sponsoring Entity) 187 14. Business Procedures 192 15. Management and Administration 206 16. Bylaws 226 227 17. Assurance of Liability 228 18. Insurance 19. Transportation 229 20. Financial Commitments 230 . - . 231 21. 233 Appendix A 243 Appendix 354 Appendix 431 Appendix 447 AppendixE 484 Appendix 487 Appendix 506 Appendix 509 Appendix I 511 AppendixJ 531 Appendix 544 Appendix 562 Appendix 569 AppendixN 571 Appendix 0 2 Page 348 Charter Applicant Information Sheet Name of Proposed Public Charter School: Memphis School of Excellence Proposed School Address (if known): City, County, and School System in which Proposed School is Located: Memphis. Shelby Countv. Memphis Citv Schools Legal Name of Group (Sponsor) Applying for Charter: Read Foundation Primary Contact Person: Cem Akkus (President). Dr. Soner Tarim (Spokesperson) Address: 198 Island BluffDr. City: Memphis State: Zip: 38103 Daytime Telephone: Cem Akkus 646-387-9885. Dr. Tarim; 832-641-5588 Fax: 901-595-4585 Email Address: Mr. Akkus Dr. Tarim (sonertarim@gmail.com) Proposed Grade Levels Total Student Enrollment: Year One 6?9 Year Two 6? 1 0 50 Year Three 6-1 I 400 Year Four 6?12 475 Year Five 6?12 475 Ultimately, once all grade spans have been added, what is the proposed grade con?guration of the school? 6-12 Brief description of the proposed school?s focus and mission (2-3 sentences): The mission of Memphis School of Excellence is to provide a safe and collaborative environment which will cultivate the academic and social development of its students by emphasizing math, science, and technology for the purpose of students setting and meeting higher education goals. school model is rigorous (prepares students for college), relevant (reinforces math and science skills) and is underpinned by a tight web of relationships (a strong culture reinforced by teachers and parents). Student achievement/outcome will be built on 3 core principles within the school model: a challenging math and science curriculum supported by theory; a focus on assessment; and a culture of constructive competition, discipline and parental engagement. MSE will utilize technology across all of these dimensions to reinforce its school model and curriculum. Signature of Primary Contact Person: Date: December 8, 2009 I Page 349 Assurances Form his form must be signed by a duly authorized representative of the sponsor and submitted with the application. An application will be considered incomplete if it is not accompanied by the Assurances Form signed by an authorized individual. As the authorized representative of the Sponsor, I hereby certify that the information submitted in this application for a charter for the Memphis School of Excellence to be located at the MNPS Clusters is true to the best of my knowledge and belief; and further I understand that, if awarded a charter, the school: 1. 10. 11. 12. 13. will operate as a public, nonsectarian, non-religious public school, with control of instruction vested in the goveming body of the school under the general supervision of the chartering authority and in compliance with the charter agreement and the charter school act; will meet the same performance standards and requirements adopted by the state board of education for public schools; will provide special education services for students as provided in Title 49, Chapter 10; will follow all federal and state laws and constitutional provisions prohibiting discrimination on the basis of disability, race, creed, color, national origin, religion, ancestry, or need for special education services; will follow any federal and state court orders in place in the local school district; will comply with federal and state applicable health and safety standards; will not be a conversion of any private, parochial, cyber-based, or home-based school; will not be a cyber-based school; (if conversion school) will demonstrate that parents of sixty percent of the children enrolled at a public school or sixty percent of the teachers assigned to the school have consented their support to conversion (please provide petitions as attachment); will open to bid all contracts for goods and services in excess of ?ve thousand dollars will be subject to the provisions of Tenn. Code Ann. ?12?4-101 and 12-4-102 with regard to con?icts of interest; will deem meetings of the governing body as public business and be held in compliance with Tenn. Code Ann. ?8-44-102; will employ individuals to teach who hold a license to teach in a public school in Tennessee or meet the minimum requirements for licensure as de?ned by the state board of education; 14. will follow state audit procedures and audit requirements; Page 350 15. 16. 17. 18 19. 24. will not charge tuition, unless the governing body of the charter school approves a transfer from another district to a public charter school in its district pursuant to the provisions of Term. Code Ann. ?49-6-3003; will operate on a July 1 to June 30 ?scal year and will adopt and operate under an annual budget for such ?scal year; will prepare a budget in the same format as that required by the state department of education for local education agencies; . will maintain its accounts and records in accordance with generally accepted accounting principles and in conformance with the uniform chart of accounts and accounting requirements prescribed by the comptroller of the treasury; will prepare and publish an annual ?nancial report that encompasses all funds and includes the audited financial statements of the charter school; . will require any member of the governing body, employee, of?cer or other authorized person who receives funds, has access to funds, or has authority to make expenditures from funds, to give a surety bond in the form prescribed by Tenn. Code Ann. ?8-l9-lOl; . will at all times maintain all necessary and appropriate insurance coverage; . will be non-religious in its programs, admissions policies, governance, employment practices and all other operations, and its curriculum will be completely secular; . will adhere to all provisions of federal law relating to students who are limited English pro?cient (LEP), including Title VI of the Civil Rights Act of 1964 and the Equal Educational Opportunities Act of 1974, that are applicable to it; will follow any and all federal, state, and local laws and regulations that pertain to the applicant or the operation of the charter school; Cem Akkus Name of Authorized Signer (Print or type) President Title of Authorized Signer g5: Signatl?e December 8. 2009 Date Page 351 1. Mission Statement Section 1 - Provide a statement de?ning the mission and goals of the proposed public charter school. Explain the mission of your proposed public charter school. Provide a clear and concise statement that de?nes the purposes and nature of the school. Your mission statement should in one or two sentences indicate what the school intends to do, for whom, and to what degree. Explain the need for this particular school in the community it will serve and the target student population. If your school currently exists and is applying for a conversion to charter status, explain how the school will bene?t ?om becoming a public charter school and how the conversion will more adequately meet the needs of the students being served. State the goals for the proposed school. Specify in clear and measurable terms what you hope to accomplish in the areas of(1) academic performance, (2) organizational performance, and (3) other school-speci?c goals. The Mission Statement The mission of Memphis School of Excellence (MSE) is to provide a safe and collaborative enviromnent which will cultivate the academic and social development of its students by science, and technology for the purpose of students setting and meeting higher education goals. Graduates of MSE will have the tools necessary to positively impact their communities as they pursue their personal and professional aspirations. Memphis School of Excellence believes an effective and adequate education necessary for the citizens of the future relies heavily on a multidimensional academic curriculum in which all core subjects will be blended together through various teaching methods while promoting the development of a strong character that supports and respects society. We strongly believe that mission statement and our outlined goals relate to the Memphis City Schools? strategic plan which is based on student achievement, accountability, parent and community involvement, healthy youth development, safety and diversity. Memphis School of Excellence believes that focusing on an overall high academic achievement will include providing opportunities for individual skills and talents to develop to higher levels. This will inspire in students a lifelong love of learning and desire for self-improvement and creativity. MSE strives to lead each and every studentto these accomplishments by using enhanced Tennessee Curriculum Standards. The No Child Left Behind (NCLB) Act of 2001 will serve as a guideline in our commitment to teach every student how to reach his or her fullest potential. As part of the NCLB Act, instruction at MSE will be research based and evaluated Page 352 frequently, teacher development will be a continual process, and special emphasis will be given for the adequate yearly progress of each student. Every effort will be made to humanize and personalize the environment in which students learn, and to maintain safe, friendly and wholesome atmosphere that encourages creative expression and a desire to acquire knowledge. The emphasis of the entire instructional program is aimed at meeting the individual needs of each student in order to allow children to develop to their fullest potential. The school establishes an atmosphere in which students develop abilities to generate new thoughts, to think analytically, to draw logical conclusions, and to express thoughts in written and verbal form. By instilling in the student?s knowledge and appreciation of one?s heritage as a member of the American community, as an American citizen, and as a member of a family, the school strives to make the student aware of accountability to oneself and to others. Since adolescents thrive in an environment of diversity, we will strive to create a diverse learning environment. Diversity is not only a motivating factor, but also an essential element in a well- rounded education. It serves as a key to success in our diverse American society, institutions of higher learning, and inter-connected global economy. Each and every student at MSE will be regarded as a unique, valuable, and vital member of the school community. Individual attention in the form of one-on?one tutorial, intensive counseling, and individualized goals is the key to motivating our students. Cooperation with area universities is an effective means toward enhancing the effectiveness of our tutorial system. Multi-cultural aspects are also integrated into our curricula; not just through geography and foreign language, but within each of our subject areas. Our students are encouraged to make additional contacts with other cultures by participating in local, national and International Science and Mathematics Competitions. While cherishing the individual choice of each student, the school will focus on curriculum standards so that children may achieve the mastery upon which further learning will be built. MSE will use a variety of teaching methods to ensure learning for all students regardless of race, gender, or socioeconomic background. Page 353 Memphis School of Excellence?s curriculum will be project oriented, interdisciplinary, and thematic. School Science fairs, student work displays, performances, newsletters, multimedia publications (web, CDs and etc.), in-school academic competitions and various methods will be used to exhibit student work. The founders envision an environment where families, teachers, and students communicate on a regular basis, in order to optimize the students? educational opportunities in addition to activities that contribute to the complete personal and social development and personal esteem, such as recreation, athletics and co-curricular and/or extracurricular activities. Learning and applying Science, Ma?i, and Technology through projects that are linked to community and family is the means by which students experience personal academic success and emotional growth. Students at MSE will have an extended Health Curriculum that will involve Nutrition, Health and Fitness. Students will be educated on healthy and safe nutritional habits in our school in order to develop a ?t and healthy generation. The founders believe that leading by example is the best .way to inspire change. Through the development of a school with challenging standards of academic excellence, which results in higher achievement scores; through the inclusion of all students regardless of racial, ethnic background, language barriers, educational classi?cations, or socio-economic status; and through the demonstrated satisfaction of students and families alike, the impetus for change in the region public schools will be realized. Needs A recent report prepared for Members of Congress by the Congressional Research Service highlights a growing concern that the United States is not preparing a suf?cient number of students, teachers, and practitioners in the areas of science, technology, engineering, and mathematics (STEM). A large majority of secondary school students fail to reach pro?ciency in math and science, and many are taught by teachers lacking adequate subject matter knowledge. Overall, Tennessee is among the nation?s lowest-ranking states in the proportion of the adult population with a college degree. Tennessee?s high school graduation rate is the third lowest in the nation, barely ahead of South Carolina and Nevada; worse yet, our graduation rate has actually declined over the past decade. Tennessee students routinely fall below national averages in reading and mathematics scores on the Nation?s Report Card. Page 354 There are a limited number of schools in Memphis that offer a comprehensive college preparatory program emphasizing mathematics, science, and technology. Memphis School of Excellence will strive to play a role in satisfying this need. University of Memphis and other local institutions of higher learning currently offer programs in mathematics, science, and technology. MSE will offer programs to develop the necessary skills for its students to enroll in Science and Engineering departments in local and national universities; to compete in the increasingly demanding workplace of science and technology; and to contribute to the long-term economic development of the region. As seen in the following tables (Table 1.1 and Table 1.2), Academic ACT achievement of Memphis City Schools? students is below state averages at all subjects. This low performance means that the majority of students do not receive a college preparatory education in MCS. These numbers indicate that the students of the region need stronger encouragement and motivation for Higher Education Programs. Tables 1.1 and 1.2 clearly depict that there is a great need for a college preparatory charter school that offers rigorous math and science programs to low achieving students in the city of Memphis. Grades 9-12: ACT Schools Sub ects 2007 1 7.7 ish 7.3 Math 1 7.3 Read' 1 7.8 Science/Reason 1 7.7 I I . MCS State . MCS State Subjects Grades 2007 2007 Subjects Grades 2007 2007 6 81 89 9 64 86 Math Algebra Reading/Physical 10 74 90 6 66 84 Science 1 1 84 90 Science 3:53:Page 355 Memphis School ofExcellence will be addition to Memphis City Schools to address this critical need ofhaving a college preparation charter school focusing on Math, Science, and technology. MSE will provide exemplary education to underserved population. rigorous academic program will present a choice as an alternative path for students and families of Memphis City Schools. Table 1.3 through Table 1.5 compares the percentages of student populations that are pro?cient, below and advance in mathematics, reading, and writing. As it is seen, African American and economically disadvantage student populations are below the target percentages of pro?ciency in all grade levels. Because majority of student population in Memphis City schools made up of African American students (Table 1.6), MCS did not meet AYP in high school grades for African American students. It is important to offer a high achieving, goal oriented, and rigorous academic program for all students. Subgroups All Students African American Asian/Paci?c Islander His nic Native American White Economicallv Disadvanta ed Students with Disabilities Limited En lish Pro?cient 2007 Target Pro?cient Adv. 79) Below Prof ProfSource: 'l?cnnesscc Department 01? Education Report Cards 2008. 2008 Target" Pro?cient 8: Adv. 86% Below ProfIx.) OOUI Prof Belo 2008 State Target Pro?cient Adv. 86%) Prof& ProfTable 1.4: AYP Summary Table for Math (Grades 9-12) 2007 2008 2008 State Target Pro?cient Target Pro?cient Target Pro?cient Subgroups Adv. 8: Adv. (83) Adv. (83) Below Prof Below Prof Below Prof Prof Adv Prof Adv Prof Adv All Students 31 69 25 75 13 87 African American 34 66 27 73 23 77 Page 3860 Asian/Paci?c Islander 10 90 5 95 5 95 Hispanic 26 74 17 83 14 86 Native American 11 89 White 10 90 4 96 9 91 Economically Disadvantaged 35 65 28 72 20 80 Students with Disabilities 60 40 53 47 38 62 Limited English Pro?cient 34 66 20 80 22 78 Source: Tennessee Department of Education Report Cards 2008. Table 1.5: Summary Table for Reading/Language Plus \Vriting (Grades 9-12) 2007 2008 2008 State Target Pro?cient Target Pro?cient Target Pro?cient Subgroups Adv. Adv. Adv. 93%) Below Prof Below Prof Below Prof Prof. Adv Prof. Adv Prof. Adv All Students 12 88 10 90 7 93 African American 14 86 11 89 11 89 Asian/Paci?c Islander 11 89 6 94 5 95 Hispanic 14 86 14 86 12 88 Native American 8 92 White 2 98 2 98 6 94 Economically Disadvantaged 14 86 12 88 11 89 Students with Disabilities 48 52 34 66 26 74 Limited English Pro?cient 33 67 24 76 28 72 Source: Tennessee Department of Education Report Cards 2008. Table 1.6: Memphis City Schools Student Body Demographics Subgroups of Students of Students African American 96,118 86.1 Asian Paci?c Islander 1,397 1.3 Hispanic 5,943 5.3 Native American Alaskan 106 0.1 White 8,040 7.2 Economically Disadvantaged 78,036 79.6 Source: Tennessee Department of Education Report Cards 2008. In addition to low student achievement in Memphis City Schools, attendance and graduation rates are extremely low in MCS compared to state average (Table 1.7). Consequently, the dropout rate is almost twice as high as the state average. MSE will provide alternatives for parents, especially for those who would like their children to be educated with an orientation in a particular subject area. Because of its small size and ?'iendly environment, MSE will draw parents to school in larger numbers more than a traditional public school. Speci?cally, MSE will offer parents and students more options to participate in an academic setting in a more dynamic manner. 11 Page 357 'l?able 1.7: Attendance and Graduation Rates for Students in Grades 9-12 Non-Academic Indicators 2006 2007 2008 State Goal Attendance Rate (Grade not included) 88.6 89.2 89.2 93 Cohort Dropout 1 5 14.7 19.3 10 Graduation Rate (NCLB) 67.2 69.6 66.9 90 Source: Tennessee Department of Education Report Cards 2008. According to national statistics, minorities and women are still underrepresented (about 10%) in the high-tech and science careers. MSE will focus its efforts on becoming a vehicle for underrepresented communities and women to select and succeed in rigorous programs of studies and careers in Math, Science and engineering ?elds. Need for Memphis School of Excellence in Memphis Memphis School of Excellence will allow room for flexibility, creativity, and ?ne tuning in school policies, curriculum, and management based on local needs. While keeping state standards and benchmarks as a guiding tool, MSE will implement additional programs to meet the individualized needs of their students, parents and teachers. The small classroom and school size will help to maintain a low faculty: student ratio (1 :15) to achieve targeted performance goals. The educational philosophy and specialized mission of MSE will foster an entrepreneurial spirit that will create a productive educational community. The ?exible curriculum will allow a successful implementation and evaluation of a Character Education and Teen Leadership program on campus. The small number of students and a small sized campus will enable the administration to implement a ?rm discipline policy, provide supervision on campus, and avoid circumstances that jeopardize safety by applying measures to take certain precautions in an unlikely emergency situation. In MSE, school of?cials will be able to educate and guide our parents on how to develop a positive attitude and approach towards their children, how to communicate and interact with their children more effectively, and how to manage their children?s natural transformation and development. MSE will help to create a community by involving parents, neighbors, non-pro?t organizations, and businesses in various educational activities. page 3282 One of the priorities in schools today is the safety of students. Parents are looking for a small campus where they can leave their children in a safe and nurturing environment. While the proposed communities at large are suffering in both the short and long run from the violence and instability that may occur in and around large schools, MSE is committed to standing against any and all threats by forming a safe campus environment through ongoing monitoring and supplemental supervision for the students. As a small sized campus, MSE will have the secure and conducive learning environment that parents hope to ?nd. There is a need for strong parent/teacher/student relationships. We strongly believe that establishing a positive relationship with students? families is an important tool in school reform, particularly in low-income, urban districts where educators traditionally struggle to build parent involvement. Faculty and administrators of Memphis School of Excellence will conduct periodic home visit for all students. Home visits help establish rapport between parents and teachers. During home visits, teachers discuss student progress, school programs and planning; and parents provide invaluable feedback and input; thus students improve both academically and socially. Home visits will be an integral part of our educational program and we believe that home visits will contribute greatly to our students? success. There is a serious need for instilling moral values in students at our schools. The school plans to implement a campus-wide Character Education Program that will help our students build unshakable character and the personal and professional skills needed for future leadership. Students at MSE will be encouraged to take responsibility for their actions, seek role models and develop into good citizens with high ethical and moral values. Parents will be regularly informed about the Character Education Program to ensure that they will also be involved in our effort in inspiring good behavior in our future leaders. Students will also meet and interact with professionals during Career Days and develop an early inclination toward success for their future aspirations. 7 Integration of technology into various curricula has been an ambitious goal in schools. MSE will serve as a unique school in the region where technology is widely and scienti?cally used as a student-oriented learning tool. Students in our schools will bene?t from being taught the signi?cance of giving back to community. Parents and students will actively be involved in the community service program at MSE and reach out to the community as the community in turn adopts ideas and contributes to the school. The demand for professionals with a strong math, science and technology background 13 Page 359 outpaces many other non-technical careers. Attracting young people to attend high schools, and giving them the motivation to pursue their academic goals in a college by preparing them for higher education is one of the aims of MSE. Memphis City Schools? vision is to become an internationally competitive urban school system that produces well-rounded, high-achieving students. However, most middle and high school students are not aware of the opportunities to compete in global math and science competitions science and math Olympiads). MSE will raise students? awareness and begin the process of guiding them toward developing skills and the desire to compete at the highest level. Students in middle and high school will be introduced to research methods. MSE students will be asked to complete a science project every year. This research effort will be an enrichment activity, a family experience, an early start to academic work, an opportunity to develop a portfolio, a reference for the best colleges, and a way to establish connections with universities. Students will have the opportunity to work on advanced projects under the supervision of college professors and students. Students in our schools need and can greatly bene?t from this type of exposure. The Character Education and Teen Leadership programs will meet the need for instilling ethical and moral values in our children and will develop leadership skills in our youth. MSE plans to implement a campus-wide Teen Leadership Program that will help our students build great character, exemplary personalities, and skills for future leadership. The Career Education Program will address the needs of middle and high school students by helping them learn more about themselves, the corporate world, and various professions in order for students to make the perfect match. In the Career and Technology, students will be guided to follow different tracks such as business, health, technology, trade, etc. Academic and Organizational Goals Based on the comments of the Application Review Committee, following revisions are made: 1- ?Performance Measure Indicator? is added for each speci?c goal to show how the performance for each goal is going to measured. 2- Some of the objectives were modi?ed (and changes were underlined) to make them more speci?c and clear. Page 3&4 3.. ?Academic Performance Goals? part was modi?ed. These goals not only relate to state testing but also SAT, ACT, demographics ratio, drop-out rate, college acceptance rate, student attendance rate, enrollment in AP and dual-credit courses, and career-technology classes in high school. Academic Goals Goal Students will receive a thorough and comprehensive, balanced education, meeting and exceeding the Tennessee Curriculum Standards. Objectives: a. All students will be given standardized tests geg. Iowa Tests of Basic Skills, STAR Reading test, STAR Early Literacy TesL and Star Math Test) at the beginning of the school year. Test data will help teachers and administrators to adiust the instructional level. and arrange appropriate supportive proggams for students at risk. Test results will also be utilized by the administrative staff to modi the curriculum if necessa in order to em hasize areas of de?ciency bv the end of the ?rst school year. (Please see ?student goals? part of the section 2 for more detailed explanations about strategies, performance measures, and assessment tools that the school will use to achieve its academic objectives for each core subject.) . Students with special needs will receive individualized goals, and as appropriate, students suSpected of being eligible for special education will be referred for evaluation, evaluated, and if classi?ed will receive Individualized Educational Plans developed and implemented, according to the state and federal timelines. c. Students entering with IEPs will be accommodated according to the IEP in place. . Special Education teacher will utilize a consultative model to work with all classroom teachers and other applicable staff members, to assist with modi?cations to the students? programs within the mainstream classrooms. This process will begin as early as the faculty orientation. 100% of the students will be re-tested at the end of the academic year, utilizing standardized tests and teacher tests. 85% of the students will demonstrate improvement in identi?ed areas of de?ciency. . 85% of the students will demonstrate improvement academically, at a minimum, meeting the standards of the TCS. . 100% of the students will take standardized tests required of all public school students. Students will also be assessed through teacher tests, and student maintained portfolios. Page 361 i. In regard to special education students, 85% of classi?ed students will demonstrate mastery of 85% of their educational goals as outlined on their IEPs. Performance Measure Indicator: of the students taking the above mentioned tests and programs, of students performing at above mentioned levels. Goal All students will be educated in an environment of mutual respect. Ch racter Education and Leadership development will be provided. Objectives: a. All students will participate in classroom activities geared towards problem solving, con?ict resolution, peer support, leadership, group sharing, cooperative learning projects, and self- esteem. . The aims of education are to support the growth of pupils' overall personalities. The cognitive goals of education are to strengthen study skills and cognitive skills of pupils. The affective and social goals of education are met by providing socio-ethical and aesthetic education alongside with the conventional learning of facts. Keeping these in mind, a strong character education and leadership development program will be implemented at MSE. . Starting from 6th grade, MSE will offer a character education class. The Character Education class will encourage students to take responsibility for their actions. 100 of students in grades 6 throth 12 will take character education class. 100 school-wide students will participate in character education proggam . All teachers will be evaluated with a component of inclusion of character development in the classroom activities and periodic teacher evaluations. . Issues of cultural and ethnic diversity will be considered valuable additions to the learning environment and will be encouraged as subjects of study and discussion. Language barriers will be eliminated through the infusion of ELL programs, as re?ected in the daily class schedule. . Students and families will be requested to complete a feedback questionnaire regarding satisfaction with the atmosphere concerning mutual respect, at the end of the ?rst academic year and annually thereafter. Performance Measure Indicator: of the students. teachers. and parents who attend the above mentioned classes, proggams, or surveys. Page 362 Goal All students will become computer literate so that they will become part of the digital revolution. The school web site will be another communication tool between school and home. Objectives: a. Parents will be able to access student academic information (attendance, conduct, discipline reports, and teacher comments) via intemet. The school web site will be used as a strong communication tool between school and home. The web page will be updated regularly with ongoing projects, activities, announcements, and homework logs. All students will receive computer instruction according to achievement level, grade level, and appropriateness of technology use for the speci?c lessons. Eventually all students will be able to utilize the computer for word processing, data collection and maintenance, research, use of the Internet, report cards, and portfolios. 80 students will present a project/topic to their class by use of PowerPoint type presentation at least in one subject by the end of ?rst year this percentage will increase in next coming years. Teachers will utilize computer technology and other electronic media such as video, audio, and computer software from the inception of the academic program. 50% of teacher will use technology in the classroom (Website, Online Supplemenm courses, Smart Boards etc.) by the end of the ?rst school year and this percentage will increase in next coming years. Teachers will be aided in their use of computers for classroom instruction through in- service training prior to the opening of the school. School will seek funding to expand computer availability for students to reduce the ratio of computers for students. Performance Measure Indicator:: of students using technology in their presentations. of teachers using technology in their classroom, of students who receive adeguate computer education, of parents using school web site for their children academic records and communicating with the teachers. and student/computer ratio. Goal Students will be given the opportunity to expand their knowledge in the subject of their interest beyond curriculum level. Objectives: a. All students will be encouraged to become self-directed learners and competitors, through encouragement, provision of choices, and ensuring that opportunities for success are consistently presented. Page 363 (1. Opportunities for academic ?competition? will be presented for student choice. These may be teacher generated classroom activities, as well as official national and international events, as they become available. Membership in academic clubs will be available for student choice, math club, science club, available at the beginning of the second month of school. Students will be encouraged to compete against their own ?personal best? performance. Performance Measure Indicator: of students participating the academic competitions (eg. science fairs, science Olympiads= Math counts, . . of clubs offered by the school, of students enrolling after school clubs. More detailed information can be found about clubs and other extracurricular activities that will be offered in ?measurable school objectives? part of section 2. Goal A large number of parents will be involved in the school activities and families will be visited. Peer Tutorial, Mentoring, and Counseling will be provided. Objectives: a. Teachers will be required to regularly contact parents to discuss the students? progress in academic and non-academic areas. All parents will be encouraged to participate in activities of the classrooms, cafeteria, playground and many other extra-curricular affairs. Parent-teacher relationship will be improved by family visits. Teachers will be urged to visit students at home to inform the parents about the school and student?s progress, while the parents will have an opportunity to provide the teachers with feedback and input. parents will be visited by the end of the ?rst year. For the followingjears. new students will be given priority. Parent education programs will provide information and support to parents on how to help their children?s learning and development. Community-based partnerships will bring health and human service agencies together to provide more convenient, comprehensive, and sustained services to young children and families. Students will be required to commit to community service hours. MSE will use peer partnership as a positive tool. High school students will tutor middle school students in core areas. They will act as role models/mentors and facilitate group help sessions. Performance Measure Indicator: of parent participating the above mentioned activities, of parent visited by the teachers. of parents contacted to discuss the students? progress in academic 18 Page 364 and non-academic areas, of parents participating parent education programs, the number of students participating students peer tutoring program as tutor. Goal All students will bene?t from a smaller class size. Objectives: a. Student to teacher ratio will be 15 to 1, as re?ected in the student-teacher ratio. b. Individual instruction in a small class size setting will be available to those who are de?cient in their subject areas. Performance Measure Indicator: Student to teacher ratio. Organizational Goals MI. Build and maintain positive relationships among all school and communirz members. Objectives: a. A comprehensive and dvnamic school website will be created so that parents and communig members can be informed. b. School will utilize local media and public TV to provide information, ?good news? and special events information bv invitingLocal press. Public TV to school programs and activities and by publishing school newsletters. Community members will be invited to school programs. d. School will provide continuing education opportunities for parents and other communig members computer classes, language classes.) Performance Measure Indicator: The number of the programs arranged for communi? members, the number of communigg members invited and attended the school programs, the number of continuing education programs offered to community members and the number of people attended these programs. Goal Develop a sound financial plan to provide high gualim cost etZective educational opportunities for all. Objectives: a. The school will maintain a well balanced budget development and presentation format b. The school will develop long-term spending/savings/capital plan c. The school will seek grant ?mding for additional resources Performance Measure Indicator: The and vearlv budget status reports. Page 365 \a Goal Maintain a clean, sate, and modern facility that provides a setting [or appropriate academic, extracurricular, and community activities. Objectives: a. The school will make yearly plans for replacement of classroom furniture; provide support for both personnel and infrastructure b. The school will Prioritize facilities improvement projects yearly Performance Measuregldicator: The yearly facility status reports. Goal Multicultural and multiethnic diversi? will be considered valuable attributes. Obiectives: a. All students will be encouraged to tink beyond cultural boundaries. and to show tolerance and acceptance of individuals or gxoups with different cultural backgrounds, and to accept people in their own ethical and cultural positions. b. The school will explore training options to allow focus on issues of sensitivig; to ethnic and cultural backggounds, for the entire staff. All staff will be encouraged to participate in training scheduled prior to the opening of the school. Performance Measure Indicator: The number of the programs focusing on multicultural and multiethnic diversity offered to students and teachers. of students and teachers participating the offered programs. Academic Performance Goals 0 MSE will be in the top 15% of schools when compared to the public schools with similar demographics in Memphis City Schools in terms of the percentage of students who score at pro?cient or above on TCAP Achievement Test in Mathematics, Reading, Science, and Social Studies at any grade level. a MSE will be in the top 15% of schools when compared to the public schools with similar demographics in Memphis City Schools in terms of the percentage of students who score at pro?cient or above on Gateway Assessment in Language Arts, Mathematics, and Science. 0 MSE will be in the top 15% of schools when compared to the public schools with similar demographics in Memphis City Schools in terms of the percentage of students who score at pro?cient or above on End-of-Course in Math, Physical Science, English, and US History. 0 MSE will be in the top 15% of schools when compared to the public schools with similar demographics in Memphis City Schools in terms of the percentage of students who score a 4 or above on TCAP Writing Assessment at 8, and 11 grade levels. Page 366 MSE will be in the top 20% of schools when compared to the public schools with similar demographics in Memphis City Schools in terms of the mean SAT scores in Math, Critical Reading, Writing for all students who take SAT Test. MSE will be in the top 20% of schools when compared to the public schools with similar demographics in Memphis City Schools in terms of the mean ACT scores in English, Math, Reading, Science for all students who take ACT test. MSE will be in the top 15% of schools when compared to the public schools with similar demographics in Memphis City Schools in terms of high school graduation. MSE will be in the top 15% of schools when compared to the public schools with similar demographics in Memphis City Schools in terms of minimizing the drop-out rate. MSE will be in the top 15% of schools when compared to the public schools with similar demographics in Memphis City Schools in terms of maximizing college acceptance rate. MSE will be in the top 15% of schools when compared to the public schools with similar demographics in Memphis City Schools in terms of student attendance rate. 100% of students will take the career education course in 8th and upper grades in 5 years of MSE years. By the end of fourth years. 90 of students will gke at least one AP course. By the end of four years, 60 of students will pass test of at least one AP course. 50 of students will take dual credit courses in 11th and upper grades each year. 90% of students will involve career and technology program in high school. All of our goals are related to mission. The MSE school model allows room for ?exibility, creativity, and ?ne tuning in school policies, curriculum, and management based on local needs. While keeping state standards and benchmarks as a guiding tool, MSE will implement additional programs to meet the individualized needs of their students, parents and teachers. The small classroom and school size helps to maintain a low faculty: student ratio to achieve certain performance goals listed above. The educational philosophy and specialized mission of MSE is aiming to foster an entrepreneurial spirit that will create a productive educational community. The small number of students and a small sized campus will enable the administration to implement a ?rm discipline policy, provide supervision on campus, and avoid circumstances that jeopardize safety by applying measures to take certain precautions in an unlikely emergency situation. 2 Page 367 2. Instructional Goals and Methods Section 2 - Detail the proposed instructional goals and methods for the school, which, at a minimum, shall include teaching and classroom instruction methods that will be used to provide students with the knowledge, pro?ciency, and skills needed to reach the goals of the school. Provide a general description of'the teaching and classroom instruction methods that will be used by the proposed school. Explain the theory and research base supporting these approaches to educating the target population. Describe the school ?5 curriculum by summarizing the levels of ltnondedge, proficiency and skill expected to be achieved by students in core subject areas at each grade level. Demonstrate how the school 's curriculum meets state content standards. Explain how your school will educate children with special needs. Provide details about how limited English prtJicient learners, disabled students, and at-rislt students will benefit from your proposed teaching and classroom instruction methods. Goals. objectives, and content in all subject areas and grade levels under the Tennessee Curriculum Standards have been established by Tennessee Department ofEducation. Memphis School of Excellence embraces all the state's goals and objectives related to curriculum and will meet all appropriate content standards, learning expectations, and performance indicators. Educational programs will mirror and support the state?s aims through: 0 Selecting textbooks and other instructional materials that are aligned with the Tennessee State Department of Education?s ?Curriculum Standards? 0 Maintaining updated information provided by Tennessee Department of Education related to the Tennessee Content Standards requirements. - Requiring curriculum for each content area and grade level that is consistent with the state?s Content Standards I Ensuring rigor in the school?s curriculum. - Articulating the parents, students and others in the community as to what students should know and be able to do at each grade level. 0 Ensuring that knowledge and skills meet the learning needs of all students. 0 Providing professional development to teachers and others related to the state?s Content Standards (from resources provided by the regional ESC, the Tennessee Charter Schools Resource enter, and other appropriate sources) 0 Ensuring student assessment measures that are aligned with the TCAP and Tennessee Content Standards. Memphis School of Excellence will use strategies predicated on diverse research-based approach in that the age and individual learning preferences will determine the way skills are taught use of Learning Styles and Multiple lntelligences). Special needs students and students speaking other languages will learn along with peers and will not be segregated to learn a second curriculum. 22 Page 368 Additional services will be contracted to provide a comprehensive program for identi?ed special learners special education, ELL, etc.) Memphis School of Excellence?s core curriculum will integrate and require mastery and skill development in the areas of science, computer, technology applications, English language arts, social studies, and mathematics. In addition, Memphis School of Excellence will incorporate an enrichment curriculum, which includes a secondary language (Language Other Than English- LOTE), ?ne arts, health, and physical education, service learning, especially laboratory instruction for secondary school along with the science and technology education. Oral and written language activities will be embedded in the curriculum in conjunction with adventure projects, technology, art, music, movement, drama, dance, and games. The curriculum of Memphis School of Excellence will combine traditional teaching methods with student-centered curriculum in an inter-disciplinary, collaborative classroom environment; Project and service based learning, individualized attention to each student's educational needs, and a rigorous process of assessment and evaluation. Student-centered curriculum will give priorities to the students' interests. The teacher's role is to guide these interests, providing the skills and tools, as they are needed. The teacher, an expert in his/her discipline of study, will guide student interests to that discipline, ?nding opportunities for demonstrating relevance by asking essential questions, questions of relevance to the students' lives, questions that are worthy of the effort to think and questions whose answers might make a difference in this world. Student based curriculum is best taught through inter-disciplinary project based learning. While the teaching plans of a scripted curriculum may provide a series of activities, no scripted curriculum can re?ect the needs, interests and varied skill levels of an individual class of students. Student-centered curriculum is not a set of textbooks and teacher-proof teaching plans. Student- centered curriculum calls on commitment from teachers and students to go beyond Chapter One and the questions at the end. This curriculum provides a forum for thinking, calling on teachers to facilitate the students' desire to learn how to think about the world, how to assess information, how to integrate new knowledge into what they have learned and experienced, and how to become a contributing member of society. 23 Page 369 These interdisciplinary projects will allow the students to prepare for real-world challenges, connecting the core subjects instead of segmenting them. The ability to read is the key to knowledge; the ability to perform math is the key to analyzing that knowledge; the ability to speak, listen and write are the keys for clarifying and sharing new knowledge. English/language Arts and math skills support all disciplines, providing a vehicle for examining scienti?c and social problems. When these interdisciplinary projects are supported through service learning, which is a method of connecting service to the curriculum and fostering growth through re?ection; school becomes the student's vehicle for becoming a contributing member of society. Integrating standards into the curriculum is a complex endeavor that brings added dimensions to the curriculum-development process. Traditionally the school curriculum provides a plan of instruction that indicates structured learning experiences and outcomes for students. It speci?es the details of student learning, instructional strategies, the teachers' roles, and the context in which teaching and learning take place. More recently, however research on teaching and learning and research on the characteristics of successful schools have broadened the scope of curriculum to include everything that affects what happens in the classroom and consequently affects student leaming. The process of integrating standards into the curriculum emphasizes learning and growth for all as the natural and desired outcome of reform in the schools. From that perspective, a standards-based curriculum includes goals, objectives, and standards, but also everything that is done to enable attainment of those outcomes and, at the same time, foster re?ection and revision of the curriculum to ensure students' continued growth. Curriculum development is most successful when educators collaborate with parents, community members, and students. "Before" and "after" school and Saturday tutorial services will be provided to facilitate working households and single parents. The programs will deepen the educational offerings of the day school and extend the learning time for the students in an atmosphere that is both relaxed and supportive. Students will experience situations that are both structured and student driven. The school will offer the following educational settings: Multi-age grouping when appropriate Integration of the visual and performing arts into the curriculum Character Education Core Knowledge Learning Styles Placement in appropriate learning groups based on assessment Individualized instruction Developmentally appropriate practices Page 370 v. 0 Parent and community education 0 Technology 0 Intensive English and oral language development The academic staff including teachers will pay close attention to the sequence of courses taken and place students in courses that are in a logical order and based on the cumulative nature of certain core subjects. Using content standards as a foundation, teachers will have curricula for each course that meets all the objectives through written assignments, projects, group discussions, formal instruction, peer tutoring, or computer assignments. Many resources will be used such as state- adopted textbooks and other educational materials, teacher created lessons, as well as educational software systems. The curriculmn of the school will be comprehensive and broad in scope. An ongoing review and analysis process of all aspects of the curriculum ensures that students are always afforded a challenging program. The sequence of all program courses is matched with the local schools program offerings, thereby enabling students a smooth transition into and out of the school as well as to the local school districts. We will strengthen our educational plan over time through the following activities designed for continuous improvement in educational service delivery: 0 Ongoing professional development activities provided by regional professional development center will enhance the knowledge base of instructional staff, thereby providing additional strategies and classroom activities that add value. 0 Regional, state, and national conference and seminars attended by the administrators and staff members will provide additional resources to increase the academic services. 0 Retention of quali?ed staff members will ensure that continuous improvement in the educational plan occurs. As experience increases so will the quality of services. 0 Onsite professional development for both administrators and instructional staff will broaden the knowledge base and add value to the educational services. 0 The utilization of technology and the intemet will offer unlimited resources for instructional staff. 0 Annual evaluations regarding academic progress, parent satisfaction, and teacher satisfaction will provide feedback that will strengthen the educational plan. Memphis School of Excellence strongly encourages those students who are performing higher than their age level to advance by taking courses from an upper grade. The scope and sequence of the proposed educational programs including ESL and special education addressing each grade level and their alignments to the Tennessee content standards are listed below. Page 371 Middle School Course Descriptions 6th Grade Subject MATH EM A TIC Course Sixth Grade Mathematics SDE COurse Code: 0606 Course Description The sixth grade mathematics deals with problem solving and skill building that involves basic operations with rational numbers. Students will estimate. round, order and manipulate rational numbers from billions to millionths. Students will be provided opportunities to work with plane and solid figures, collect data, compute simple probabilities, use variable in simple expressions, and convert measurements from one form to another within the same system. Students will be asked to explain the mathematical processes used to solve problems and recognize relationships between multiple representations of information. In 6th grade Mathematics, students will learn: . Numeration - Basic Operations with Whole Numbers and Integers Fractions/Decimals/Percent/ Ratio 0 Basic Geometry Principles 0 Measurement (both Metric and Customary Units) 0 Graphs/Tables/Charts - Patterns/Functions/Algebraic Concepts and Reasoning - Probability and Statistics Connected Mathematics curriculum will be used in 6Ill grade mathematics course.(Please see the Appendix A for details about the program) LANGUAGE ARTS Sixth Grade Language Arts Grades SDE Course Code: 0601 The sixth grade language arts curriculum includes the study of grammar, mechanics, spelling strategies, vocabulary skills, and the writing process. Content reading across the curriculum using literary techniques is emphasized. Accelerated ReaderTM program will be a supplementarv program to the Language Arts Curriculum. (Please see the Appendix for details about the program) In 6th grade Language Arts. students will learn: 0 Eight parts of speech - Mechanics capitalization and punctuation 0 Sentence and paragraph structure . Writing process - Vocabulary definition and usage 0 Vocabulary synonyms. antonyms and analogies SCIENCE 6th Grade Science/ Health SDE Course Code:0607 The concepts in the sixth grade are the Earth, Life and Physical sciences. with a special emphasis on investigations and experimentation in each area, as well as appropriate observance of safety guidelines. Earth Science t0pics include the basic components ofthe Universe, relative sizes, positions, and distances of each, as well as solar and lunar eclipses. Life science topics include the ways in which living things interact with one another and with the nonliving parts oftheir environments; adaptations that enable organisms to live in a particular environment, and how living things have changed over time. as evidenced by fossils. Physical Science topics include an understanding ofthe properties ofenergy in heat, 26 Page 372 light, electricity, magnetism and nuclear energy. Appropriate use of metric measuring devices and mathematical manipulations are also a major component. Vernier Data Collection Labs will be major components of hands-on science learning. (Please see the Appendix for details about the program) In 6th grade Science, students will learn: Earth and Space Science Physical Science 0 Landforms 0 States of Matter Earthquakes and Volcanoes 0 Physical Properties Plate Tectonics and Change Rocks and Minerals 0 Chemical Properties Atmosphere and Change Water Cycle Types of Energy Rivers and Streams Elements Life Science Atoms Diversity Magnets Motors - Ecosystems/Environment Universe Sun Stars Moon SOCIAL STUDIES 6th Grade Social Studies SDE Course Code 0619 The sixth grade social science focuses on world history up to the Middle Ages. Emphasis is placed primarily on the study of the Ancient Civilizations such as Mesopotamia, Egyptian, Greek and Roman. This course emphasizes the rise of western civilization through various cultures, and concludes with the study of the Middle Ages and the Renaissance In 6th grade Social Studies, students will learn: 0 To interpret maps, graphs and charts 0 To understand the cultures of ancient Egypt, Greece, Rome and the middle ages of Europe by comparing and contrasting their social, political and economic development 0 To understand current events in the news and to form opinions about news events from varied sources of information. 7th Grade Subject Course Course Description MATHEMATICS Seventh Grade Mathematics SDE Course Code: 0706 The seventh grade mathematics curriculum deals with deepening students? understanding of problem solving and of operations using rational numbers. Students apply appropriate techniques, tools, and formulas to determine measurement of two- and three-dimensional geometric figures. Patterns, data, graphs, relations, words and algebraic symbols are used to analyze mathematical situations. Students are expected to communicate logical thinking using correct terminology and multiple forms of representation. In 7th grade Mathematics, students will: 0 Identify, read, write, order and compare, and round whole numbers and decimals to the millionths place 0 Calculate squares, perfect square roots and use scienti?c and expanded notation 0 Demonstrate and apply understanding of all operations with Page 373 whole numbers and/or integers using appropriate properties by solving computational and problem solving problems 0 Demonstrate an understanding of and apply knowledge of ratios, proportions, and percents in a wide variety of situations a Solve computational and real-life problems involving conversions, estimation, and measurement using metric and customary units Be able to identify, classify and bisect geometric figures Will apply their knowledge of geometric properties to solve computational an real-life problems 0 Will be able to read, interpret information from and construct various types of graphs, tables and charts 0 Will make inferences, draw conclusions and solve multi-step word problems related to display data 0 Will solve one and two-step equations and graph a function table 0 Will make predictions based on experimental and theoretical probabilities Connected Mathematics curriculum will be used in 7th grade mathematics course. MATHEMATICS Algebra 1- Seventh Grade SDE Course Code: 0842 Algebra I provides students with a transition from thinking about patterns and operations using concrete quantities to their abstraction as variables, expressions, equations, inequalities, and functions Students should become adept at translating between verbal, symbolic, and graphical forms for representing algebraic ideas While most of the Gateway indicators will be covered in the ?rst semester of this course, the second semester topics will provide the foundation for a student?s further study of mathematics Technology and manipulative are used to develop and extend algebraic thinking and to engage student reasoning Students will take the Gateway Mathematics Test upon completion of this course In 7th grade Algebra 1, students can learn: 0 Operations with rational numbers 0 Solving equations in one or two variables, 0 Graphing linear and quadratic ?mctions, 0 Operations with polynomials Simplifying radical expressions and equations LANGUAGE ARTS Seventh Grade Language Arts SDE Course Code: 0701 Seventh grade language arts focus on the development of writing skills through daily journals, essay writing, peer editing, and the study of the writing process. Spelling, vocabulary, novels, short stories, mythology, poetry, drama, public speaking, and Socratic seminars are also part of the curriculum. Accelerated ReaderTM program will be a supplementagy program to the Langpage Arts Curriculum. In 7th grade Language Arts, students will learn: 0 Literature/Reading: Elements of Literature textbook; poetry, short story, the novel, non-fiction, mythology and drama 0 Writing: Descriptive, narrative, expository and persuasive essays, poetry, short stories, research papers, speeches - Grammar: Elements of Language textbook and workbook Vocabulary: Vocabulary Workshop: Level workbook SCIENCE 7th Grade Science/Health SDE Course The concepts in the seventh grade are the Earth, Life and Physical sciences, with a special emphasis on investigations and experimentation in each area, as well as appropriate observance of Page 3248 Code:0707 safety guidelines. Earth science topics include the use of instruments to gather and interpret weather data, plate tectonics and catastrophic events. Life science covers concepts related to cells, their parts and functions, the use and production of energy within cells, as well as knowledge of the processes of heredity and reproduction. Physical science concepts relate to understanding the properties of matter and the use of symbols and simple equations to represent matter as it interacts. Vernier Data Collection Labs will be major components of hands-on science learning In 7th grade Science, students will learn: Earth and Space Science In Personal/Social 0 Soil Perspective 0 Water cycle a Safety 0 Rivers and streams Nutrition/Health Life Science 0 Resources 0 Organisms Pollution 0 Diversity 0 Technology 0 Environment/Ecosystems Nature of Science 0 Cells 0 Careers 0 Science and Technology 0 Micro organisms 0 Scienti?c tools 0 Animals--characteristics, Science as Inquiry classi?cation, life cycle/reproduction 0 Human body 0 Genetics SOCIAL STUDIES 7th Grade Social Studies SDE Course Code 0712 The seventh grade social studies content is a study of world geography. Students study in detail the six essential elements of geography: world in spatial terms, places and regions, physical systems, human systems, environment and society, and the uses of geography. This study places great emphasis on the characteristics and uses of various types of maps, globes and other geographic tools. Students also study in detail the various governments, cultures and religions throughout the world. There is also an emphasis on the impact that man has on the environment, and the consequences of that impact. In 7th grade Social Studies, students will learn: 0 The ?ve themes of geography--location, place, human/environmental interaction, movement and region 0 How people live on earth (settlement patterns) and how people use the earth to satisfy basic needs (resources, economic development) To contrast how people live from one place or region to another 0 To use maps and other geographic representations and tools 0 Physical and cultural processes such as climate, erosion, ?ooding, human migration, urbanization, transportation and trade The diversity of Tennessee's physical geography About European settlements and early con?icts with Native Americans and frontier life in Tennessee 0 Tennessee's state and local government 259 Page 37 8th Grade Subject Course Description MATHEMATICS 8th Grade Pre? Pre-algebra for middle school students develops the topics ofrational Algebra numbers, number properties, order of operations, inverse operations, Credit: 1/2?1 operations with integers, functions. graphs. measurement and SDE Course computation, patterns, algebraic expressions and solving equations, Code: 0806 statistics and probability. geometric properties and relationships and problem-solving strategies with a theme of?Thinking Algebraically?". Concrete strategies and geometric models of mathematical concepts will be emphasized. In 8th grade Pre-Algebra, students can learn: 0 Operations with fractions. decimals and percents 0 Basic Geometry - Operations with integers 0 Solving one and two step equations Connected Mathematics curriculum will be used in grade mathematics course. MATHEMATICS Algebra 1- Algebra 1 provides students with a transition from thinking about Eighth Grade patterns and operations using concrete quantities to their abstraction Grades as variables, expressions, equations, inequalities, and functions. Offered: 8 Students should become adept at translating between verbal, Credit: 1 symbolic, and graphical forms for representing algebraic ideas. SDE Course While most of the Gateway indicators will be covered in the first Code: 0842 semester ofthis course, the second semester topics will provide the foundation for a student?s further study of mathematics. Technology and manipulative are used to develop and extend algebraic thinking and to engage student reasoning. Students will take the Gateway Mathematics Test upon completion ofthis course. In 8th grade Algebra l, students can team: 0 Operations with rational numbers 0 Solving equations in one or two variables, 0 Graphing linear and quadratic functions, 0 Operations with polynomials - Simplifying radical expressions and equations. MATHEMATICS Eighth Grade Geometi'y develops the concepts of plane, solid, and coordinate Geometry geometry through the use of proofs, both deductive and inductive, For High while simultaneously developing logical thought and reasoning School Credit processes Prerequisite: In 8th grade Geometry, students can learn: Algebra 1 Credit: 1 0 Explore geometric figures including: points, lines, planes, SDE Course polygons, circles and polyhedrons Code: 3108 use logical reasoning, formal proofs, experimentation, geometric constructions and algebra to discover relationships and patterns among the figures LANGUAGE Eighth Grade Eighth grade communication arts encompass reading, vocabulary, ARTS Language Arts writing, and speaking skills. Short stories, novels, dramas, poetry, SDE Course Code: 0801 creative writing, research-based writing, and forensics are explored as well. Accelerated ReaderTM program will be a supplementary program to the Lana, uage Arts Curriculum. In 8th grade Language Arts, students will learn: 0 Reading skills 3 Page 376 Poetry Elements of the short story Novel studies including: non-?ction, science fiction, biography, ?ction books and plays Four areas of writing and literary response Grammar and vocabulary SCIENCE Eighth Grade Science/Health SDE Course Code: 0807 The concepts in the eighth grade are the Earth, Life and Physical sciences, with a special emphasis on investigations and experimentation in each area, as well as appropriate observance of safety guidelines. Earth science topics include understandings of continental drift, geologic time, and the identification of rocks and minerals. Life science covers concepts related to the interaction of living and nonliving things, principles of inheritance, and methods used to classify living things. Physical science concepts relate to understanding the interactions of matter, the in?uence of forces and motion on objects, and the principles of simple machines. Vernier Data Collection Labs will be major components of hands-on science learning In 8th grade Science, students will learn: 0 Metric measurement Motion Forces Conservation Laws Elements, molecules, compounds and mixtures Chemical changes and reactions Types of chemical reactions Nuclear reactions and decay Electricity Genetics Astronomy SCIENCE Eighth Grade Physical Science - For High School Credit Credit: 1 SDE Course Code: 3202 Students will study introductory chemistry and physics, covering fundamental concepts such as structure and properties of matter, interactions of matter, force, motion, and energy. Hands-on laboratory investigations should constitute a major portion of the learning experience. Appropriate use of metric measuring devices and mathematical manipulations are also major curriculum components. Students will be administered the state Physical Science End of Course test at the conclusion of this course. Students completing this course are eligible for high school credit in physical science if they (1) pass the state End of Course test, a_nd_ (2) earn a 70 or above as a ?nal average in the course. SOCIAL STUDIES 8th Grade Social Studies SDE Course Code 0814 The eighth grade social studies content?s focus is the period of American history from pre-exploration to Reconstruction. There is a greater emphasis on American history in context with world history, and the impact that world history had on the creation of the United States. The students in eighth grade study in detail the origins of the United States through an in-depth study of the American Revolutionary War, and the creation of the Constitution and Bill of Rights. There is also an in-depth study of the Civil War period and the events that led to this event. The use of primary source documents is of importance in promoting both the study of history, as well as reading comprehension. page 3371 In 8th grade Social Studies, students will learn: 0 About American history from discovery through the Cold War 0 To analyze primary source documents and apply them to social studies 0 About the Constitution and the role it plays in the world today Geographic features Federal government Election process Map skills High School Courses SDE Grades Courses Course Credit Prerequisite?) Offered Code Math Foundations 3131 1/2 1 9-12 None Algebra-l 3102 1/2 1 9-12 None Algebra-I Honors 3102 1/2 1 9-12 None Geometry 3108 1/2 1 9-12 Algebra I Geometry Honors 3108 1/2 1 9-12 Algebra I Algebra II 3103 1/2 1 9?12 Algebra I and Geometry Algebra II Honors 3103 1/2 1 9-12 Algebra I and Geometry Pre?Calculus with Trig. Honors 3126 1/2 1 10-12 Algebra 1, Geometry, and Algebra II Calculus-AB AP 3127 1/2 1 9-12 Algebra 1, Geometry, Algebra II, and Pre?Calculus with Trigonometry Calculus-BC AP 3128 1/2 1 9-12 Algebra 1, Geometry, Algebra II, Pre-Calculus with Trigonometry, and AP Calculus AB Statistics AP 3129 1/2 1 10-12 Algebra 1, Geometry, Algebra II, and Pre-Calculus with Trigonometry Algebra Gateway Intervention 1* 3180 l/2 1 9-12 Algebra I Algebra Gateway Intervention 11* 3180 1/2 1 9-12 Algebra Gateway Intervention I Algebra Gateway Intervention 3180 1/2 1 9-12 Algebra Gateway Intervention I, II Algebra Gateway Intervention 3180 1/2 1 9-12 Algebra Gateway Intervention I, II, 111 English English-I 3001 1/2 1 9-12 None English-I Honors 3001 1/2 1 9-12 None page 3382 English-II 3002 1/2 1 9-12 English I English-II Honors 3002 1/2 1 9-12 English I 3003 1/2 1 9-12 English II Honors 3003 1/2 1 9-12 English II English-IV 3005 1/2 1 9-12 English English-IV Honors 3005 1/2 1 9-12 English English Language and 3013 1/2 1 11-12 English II Honors Composition AP English-Literature and 3014 1/2 1 11-12 English Honors or Composition AP English Lang. and Comp. AP Linguistic 0985 1/2 1 9-12 Reading De?ciencies as documented by TCAP reading scores. Linguistic 0985 1/2 1 9-12 Linguistic I Linguistic 0985 1/2 1 9-12 Linguistic II Linguistic 0985 1/2 1 9-12 Linguistic 111 English Gateway Intervention 3080 1/2 1 9-12 Failing score on the TCAP English I End-of-Course or TCAP English Gateway Assessment English Gateway Intervention 3080 1/2 1 9-12 English Gateway Intervention I English Gateway Intervention 3080 1/2 1 9-12 English Gateway Intervention II English Gateway Intervention 3080 1/2 1 9-12 English Gateway Intervention Science Physical Science 3202 1/2 1 9-12 None Physical Science Honors 3202 1/2 1 9-12 None Ecology 3255 1/2 1 10-12 Biology I and Physical Science, Chemistry or Physics Biology-I 3210 1/2 1 9-12 None Biology-I Honors 3210 1/2 1 9-12 None Biology-II AP 3217 1/2 1 10-12 Biology I and Chemistry I Chemistry-I 3221 1/2 1 10-12 Algebra I Chemistry-I Honors 3221 1/2 1 10-12 Algebra I Chemistry-II AP 3225 1/2 1 10-12 Chemistry I and Algebra II Physics-I 3231 1/2 1 9-12 Geometry or Algebra II Physics-I Honors 3231 1/2 1 9-12 Geometry or Algebra 11 Physics- AP Physics 3233 1/2 1 9-12 Physics I Physics- AP Physics 3234 1/2 1 9-12 Physics I \l Page 3 Environmental Science AP 3236 1/2 1 10-12 Biology-I, Physical Science, and Algebra I Biology Gateway Intervention 3280 1/2 1 9-12 Biology I Biology Gateway Intervention 3280 1/2 1 9-12 Biology and Biology Gateway lnt. I Biology Gateway Intervention 3280 1/2 1 9-12 Biology and Biology Gateway Int. 111*? I, II Biology Gateway Intervention 3280 1/2 1 9-12 Biology and Biology Gateway Int. 1,11, 111 Social Studies World History 3401 1/2 1 9-12 None World History Honors 3401 1/2 1 9-12 None World Geography 3448 0.5 9?12 None World Geography Honors 3410 0.5 9-12 None US. History 3405 1/2 1 10-12 None US. History Honors 3405 1/2 1 10-12 None Economics 3435 0.5 9-1 2 None US Government 3407 0.5 9-12 None World History AP 3449 1/2 1 9-12 None World Geography AP 3448 1/2 1 9-12 None US. History AP 3440 1/2 1 9-12 World Geography AP, World History AP, or European History AP European History AP 3441 1/2 1 9-12 World Geography AP US Government Comparative AP 3446 0.5 9-12 None US Government and Politics AP 3445 0.5 9-12 None Micro Economics AP 3443 0.5 9-12 None Macro Economics AP 3444 0.5 9-12 None Visual Arts Visual Arts?I (Elective) 3501 1/2 1 9-12 None Digital Art (Elective) 3599 1/2 1 10-12 Visual Arts I Physical Education Physical Education I 3301 1/2 9-12 None Physical Education 11 3302 1/2 9-12 Physical Education I Lifetime Wellness 3303 1/2 1 9-12 None Page 380 Electives Electives include but not limited to the followings. SAT Preparation 1/2 1 11 None ACT Preparation 1/2 1 11 None Computer Applications-I 1/2 1 9-12 None Computer Applications-II 1/2 1 10-12 Computer Applications-I Foundations of Information 1/2 1 9-12 None technology Digital Communications Systems 1/2 1 9-12 None Business and Electronic 1/2 1 10-12 Digital Communications Systems Communications Computer Programming-I 1/2 1 9-12 None Computer Programming-II 1/2 1 10-12 Computer Programming-I e-Commerce I 1/2 1 9-12 None e-Commerce 11 1/2 1 10-12 e-Commerce I Networking-I 1/2 1 9-12 None Network Administration II?Linux 1/2 1 10-12 Networking-I Network Administration 11- 1/2 1 10-12 Networking-I Microsoft Network Administration II-Novel 1/2 1 10-12 Networking-I English Language Learners ELDO 3075 1/2 1 9-12 English Pro?ciency Oral Level of Beginner or Pre-production stage; and English Pro?ciency Scores of non-English pro?cient. 3075 1/2 1 9-12 ELD 0 or English Pro?ciency Oral Level of Beginner or High beginner stage; and English Pro?ciency Scores of non-English pro?cient. ELD2 3075 1/2 1 9-12 ELD I or English Pro?ciency Oral Level of Beginner or High beginner stage; and English Pro?ciency Scores of limited English pro?cient. ELD3 3075 1/2 1 9-12 ELD II or English Pro?ciency Oral Level of Beginner, High beginner or intermediate stage; and English Pro?ciency Scores of limited English pro?cient and/or fully English pro?cient. 3 Page 381 ELD4 3075 1/2 1 9-12 ELD or English Proficiency Oral Level of Beginner, High beginner, intermediate or high- . intermediate stage; and English Pro?ciency Scores of limited English pro?cient and/or fully English pro?cient. Reading I 3075 1/2 1 9-12 English Pro?ciency Oral Level of Beginner or Pre-production stage; and English Pro?ciency Scores of non-English pro?cient. Reading 11 3075 1/2 1 9-12 Reading I or English Pro?ciency Oral Level of Beginner or High beginner stage; and English Pro?ciency Scores of non-English pro?cient. This course cannot replace any required Math course, but it may be counted as an elective course. High School Curriculum (Grades 9-12) I Language Arts English I Grade: 9 Credit: 1.00 (2 semesters) Prereguisites: 8th Grade English In English 1, students begin developing college level skills in the use and integpretation of language to better understand themselves and their world. Students read and analyze a wide varie? of World Literature, including novels, short stories, plays, essays, and poems. Reading instruction centers not on mere comprehension, but focuses on building higher level thinking skills to evaluate the literag techniques of the author and inteppret the themes of the work. Students learn literary forms and terms associated with selections being read and apply these in analysis. Teachers model writing strategies that students apply in their work, centering on the development and masteg of focus and coherence, voice, conventions, depth of thought, and conventions. Students compose college level analytical papers using appropriate formatting and documentation. Students ?nd the tools to express their ideas through vertically aligned vocabulam development stressing masteg of Greek and Latin roots. Students learn to view art and other visual representations as a compliment to the written word and determine an image?s connection with the themes of the text. Students develop speaking skills to express their ideas clearly and effectively. Students re?ne their listening skills to better participate in lecture, classroom discussion, and cooperative groupactivities. English II Grade: 10 Credit: 1.0012 semesters) Prereguisites: English I In English 11, students continue developing college level skills in the use and intemretation of language to better understand themselves and their world. Students read and analyze a wide variety of World Literature, including novels, short stories, plays, essays, and poems. Reading instruction centers not on mere comprehension, but focuses on building higher level thinking skills to evaluate the litergg techniques of the 3 Page 382 author and interpret the themes of the work. Students learn literary forms and terms associated with selections being read and apply these in analysis. Teachers model writing strategies that students apply in their work, centering on the development and masteg of focus and coherence, voice, conventions, depth of . thoughr, and conventions. Students compose college level analytical papers using appropriate formatting and documentation. Students ?nd the tools to express their ideas through vertically aligned vocabula? development stressing masteg of Greek and Latin roots. Students learn to view art and other visual representations as a compliment to the written word and determine an image?s connection with the themes of the text. Students develop speaking skillsto express their ideas clearly and effectively. Students re?ne their listening skills to better participate in lecture, classroom discussion, and cooperative group activities. English 111 Grade: 11 Credit: 1.00 (2 semesters) Prereguisites: English II In English students further develop college level skills in the use and interpretation of language to better understand themselves and their world. Students read and analyze a wide varieg of American literature, including novels, short stories, plays, essays, and poems, as well as literature from other cultures. Reading instruction centers not on mere comprehension, but building higher level thinking skills to evaluate the litera__ry techniques of the author and interpret the themes of the work. Students learn literam forms and terms associated with selections being read and apply these in analysis. Teachers model writing strategies that students apply in their work, centering on the development and masteg of focus and coherence, voice, conventions, depth of thoughr, and conventions. Students compose college level analytical papers using appropriate formatting and documentation. Students ?nd the tools to express their ideas through vertically aligped vocabulg development stressing maste? of Greek and Latin roots. Students learn to view art and other visual representations as a compliment to the written word and determine an image?s connection with the themes of the text. Students develop speaking skills to express their ideas clearly and effectively. Students re?ne their listening skills to better participate in lecture, classroom discussion, and cooperative group activities. English IV Credit: 1.00 (2 semesters) Prereguisites: English In English IV, students master college level skills in the use and intemretation of langpage to better understand themselves and their world. Students read and analyze a wide varie? of British literature, including novels, short stories. Dlavs, essays. and poems. as well as literature from other cultures. Reading instruction centers not on mere comprehension, but building higher level thinking skills to evaluate the litera? techniques of the author and interpret the themes of the work. Students learn literary forms and terms associated with selections being read and apply these in analysis. Teachers model writing strategies that students apply in their work, centering on the development and maste? of focus and coherence, voice, conventions, depth of thoughr.l and conventions. Students ?nd the tools to express their ideas through vertically aligned vocabulary development stressing masterv of Greek and Latin roots. Students learn to view amd other visual representations as a compliment to the written word and determine an image?s connection with the themes of the text. Students develop speaking skills to express their ideas clearly and effectively. Students re?ne their listening skills to better participate in lecture, classroom discussion, and cooperative group activities. English I and 11 Grades: 9-10 Credit: 1.0012 semesters) Prereguisites: Administration and Teacher Approval In 9th and 10th grade, students may take English Language Arts. prepares students for high school AP courses in language and literature by further emphasizing students? skills in using and analyzing language. In addition to the goals of on-level language arts courses, students read from more advanced texts Page 383 and seek to offer more in?depth integpretations. Students compose more advanced analytical papers using a college level rubric with appropriate formatting and documentation. AP English Langpage and Composition Grade: 11 Credit: 1.00 (2 semesters) Prerepuisites: Administration and Teacher Approval I 11 grade, students may take AP English Language and Composition. Teachers create a course audit approved by College Board for accreditation. College Board states thpt. ?The AP English Language and Composition course is designed to help students become skilled readers of prose written in a varieg of rhetorical contexts and to become skilled writers who compose for a varie? of pugposes. Both their writing and their reading should make students aware of the interactions among a writer's pugposes, audience expectations, and subjects as well as the way generic conventions and the resources of language contribute to effectiveness in writing. ?The goals of an AP English Language and Composition course are diverse because the college composition course is one of the most varied in the curriculum. The college course provides students with opportunities to write about a varieg of subjects and to demonstrate an awareness of audience and purpose. But the overarching objective in most ?rst-year writing courses is to enable students to write effectively and con?dently in their college courses across the curriculum and in their professiona_1_ and personpl lives. Therefore, most composition courses emphasize the expositog, analytical, and argumentative writing that forms the basis of academic and professiopal communication. as well as the personal and re?ective writing that fosters the gbilitv to write in any context. In addition, most composition courses teach students that the expository. analytical, and argumentative writing thev must do in college is based on reading texts from yarious disciplines and periods as well as personal experience and observation. Composition courses. therefore. teach students to read primgry and secondm sources carefully, to materials ?'om these texts in their own compositions, and to cite sources using conventions recommended by professional organizations such as the Modern Language Association (MLA), the Universiy of Chicago Press (The Chicago Manual of Sale), and the American Association (APA j. MW Grade: 12 Credit: 1.0012 semestersj Prereguisites: Administratiomd Teacher Approval In 12th grade. students may take AP English Literature and Composition. Teachers create a course audit approved bv College Bogrd for accreditation. College Board states that, ?The AP English Literature and Composition course is desigped to engage students in the careful reading and critical analysis of imaginative literature. Through the close reading of selected texts, students can deepen their understanding of the ways writers use language to provide both meaning and pleasure for their readers. As they read, students should consider a work's structure, sgle, and themes. as well as such smaller-scale elements as the use of ?gprative langpage, imagery, symbolism, and tone. Reading: ?Reading in an AP course should be both wide and deep. This reading necessarily builds upon the reading done in previous English courses. These courses should include the in-depth reading of texts drawn from multiple genres, periods, and cultures. In their AP course, students should also read works from several genres and periods -- ?om the sixteenth to the tweng-?rst centug -- but, more importantly, they should get to know a few works well. They should read deliberately and thoroughly. taking time to understand a work's complexity, to absorb its richness of meaning, and to analyze how that meaning is embodied in literag form. In addition to consideringja work's literag artis?, students should consider the social and historical values it re?ects and embodies. Care?il attention to both textual detail and historical context should provide a foundation for interpretation, whatever critical perspectives are brought to bear on the literary works studied. Writing: ?Such close reading involves the experience of literature, the interpretation of literature. and the evaluation of literature. All these aspects of reading are important for an AP course in English Literature and Composition, and each corresponds to an approach to writing about literarry works. Writing to understand a Page 384 literm work may involve writing response and reaction papers along with annotation, freewriting, and keeping some form of a reading journal. Writing to explain a literm work involves analysis and interpretation. and may include writing brief focused analyses on aspects of language and structure. Writing to evaluate a literary work involves making and explaining judgr_nents about its artis? and exploring its underlying social and cultural values through analysis. interpretation, and argument. ARM Grade: 9 Credit: 1 Prerequisite: Mag; Coarse 3 In this two-semester course. students use algebraic methods to explore, model and describe patterns, relationships and functions. There is a strong emphasis on writing, graphing, and solving linear equations. Students will use data collection and analysis; statistics and probability to make inferences. decisions. and arguments as they solve a variegr of practical problems. The depth and breadth of the course will develop a strong foundation for the more theoretical and rigorous experience students will encounter at the Advanced Placement level. Algebra I provides a formal development of the algebraic skills and concepts necessary for students who will take other advanced college-preparatory courses. In particular, the instructional program in this course provides for the use of algebraic skills in a wide range of problem-solving situations. The concept of function is emphasized throughout the course. Topics include: (1 operations with real numbers. (2) linear equations and inequalities. (3) relations and ?mctions. (4) graphing linear equations and inequalities, (5) pairs of linear equations and inequalities, (6) polynomials. (7) algebraic functions. (8) qu_adratic. cubic. and radical equations. and (9) mathematical reasoning and problem solving. 9mm Grade: 10 Credit: 1 Prerequisite: Algebra I In this course, students use geometric methods, properties and relationships as a means to recognize, draw, describe, connect, and analyze shapes and representations in the physical world. Students will also apply algebraic models and probabilities to Students develop powers of spatial visualization while building their understanding of geometric ?gures. Students develop an understanding of the deductive reasoning method. Through applications and measurements. students use and strengthen their algebra skills. Geometry offers students many opportunities to explore geometric situations, develop conjectures and prove conjectures using a variegr of methods. Geomeriy students examine the properties of two-and three- dimensional objects. Proof and logic, as well as investigative strategies in drawing conclusions. are stressed. Properties and relationships of geometric objects include the study of: (1) points, lines, angles, and planes, (2) polygons, with a special focus on guadrilaterals, triangles, right triangles; (3) circles; and (4) polyhedral and other solids. Mathematical Models with Applications Grade: 11 Credit: 1 Prerequisite: Geometry This is a course for high school students with a minimum prerequisite of Algebra I. This course will reinforce, broaden, and extend the mathematical knowledge and skills acquired in algebra. The course should build on the mathematical background of the students yet stretch their knowledge toward topics studied in Geomem and Algebra 11. Students should have the opportuni? to reinforce all the objectives, maintain and extend their algebraic and geometric skills, and ?nd mathematics both useful and enjoyable. The primagr purpose of this course is to use mathematics as a tool to model real-world phenomena in science, ?nance, music, and art including the following basic understandings: In Mathematical Models with Applications, students use algebraic, graphical, and geometric reasoning to recognize patterns and structure, to model information, and to solve problems from various disciplines. Students use mathematical methods to model and solve real-life applied problems involving money. data, chance, patterns, music, desigp, and science. Students use mathematical models from algebra geomem, probabiliry, and statistics and connections among these to solve problems from a wide varieg of advanced applications in both 3 Page 385 mathematical and nonmathematical situations. Students use a varie? of representations (concrete, pictorial, numerical, symbolic, graphical, and verbal), tools, and technology (including, but not limited to, calculators with graphing capabilities, data collection devices, and computers) to link modeling techniques and purely mathematical concepts and to solve applied problems. As they do mathematics, students continually use roblem solvin lan ua and communication and reasonin 'ustification and mo to make connections within and outside mathematics. Students also use multiple representations, technology, applications and modeling, and numerical ?uency in problem-solving contexts. mm Grade: 12 Credit: 1 Prereguisite: Mathematical Models with Applications Students in this course use algebraic methods to explore. model and describe patterns. relationships and functions involving numbers. shgpes. data and graphs within a variety of real-world problem solving situations. They represent problem situations using discrete structures such as ?nite graphs, matrices, sequences yd recurrence relations. This course reviews and builds on those concepts learned in Algebra I Geometrv. It places more emphasis on applying the basic concepts of Algebra to rational numbers and irrational numbers. The course expands techniques in anal_v_tical geomem and trigonomem: learned in Geome? as a preview of the next two courses offered. Algebra II is a course which extends the content of Algebra I and provides further development of the concept of a function. Topics include: (1 relations, functions uations and ine ualitieS' 2 conic sections 3 ol nomiaIS' 4 al ebraic functions 5 logarithmic and exponential functions; (6) sequences and series; and (7) counting principles and probabiliy. Graphing calculator technologv is ?'equentlv used in this course. Math Course 2 Grade: 6 This course continues the study of basic concepts involved in working with whole numbers, fractions, decimals, integers, and percents. Emphasis is given to problem solving, communicating mathematically, reasoning, connections with other disciplines and the real world, patterns and functions, algebrg, statistics, probabilitv. and geometrv. Students in grade seven Irrat?hematics will extend and build upon their foundation of basic understandings of numbers, operation, and quantitative reasoning, patterns, relationships, and algebraic thinkinngeometrv and spatial reasoning, measurement, probability and statistics, and problem- solving. Areas of emphasis include using proportional relationships and addition, subtraction, multiplication, and division of decimals, fractions, and integers. Students will continue to experience opportunities to use models, manipulatives, and data collection and interpretation with appropriate technology. Problem-solving, communication, connections of concepts both within and outside mathematics, and informal and formal reasoning will be emphasized. Math Coprse 3 Grade: 7 This course continues the study of whole numbers, fractions, decimals, and percents. Math course 3 helps students make the transition from arithmetic to algebra. Students are introduced to integers, solving equations, and the basics of algebra early in the course. Other topics include graphing and probabilig and statistics. Problem solving, applications, and communication are integrated throughout the course. Students in grade eight mathematics will continue to extend and build upon their foundation of basic understandings of numbers, operation, and Quantitative reasoning; patterns, relationships, and algebraic thinking: geometry and spa?al reasoning; measurement. probabilitv and statistics, and problem-solving. The areas of emphasis are using algebraic principles to analyze proportional relationships and using probabilitv to describe data and make predictions. Students will continue to experience opportunities to use models, manipulatives, and data collection and interpretation using appropriate technology. Problem- solving, communication, connections of concepts both within and outside mathematics, and informal and formal reasoning will be emphasized. This course is designed to successfully prepare students for Algebra in 8th grade. Algebra 1: Grade: 8 Page 386 Nd Credit: 1 Prerequisite: Ma_tri Coqrse 3 In this two-semester course, students use algebraic methods to explore, model and describe patterns, relationships and functions. There is a strong emphasis on writing, graphing, and solving linear equations. Students will use data collection and analysis; statistics and probability to make inferences, decisions. and arguments as they solve a variety of practical problems. The depth and breadth of the course will develop a strong foundation for the more theoretical and rigorous experience students will encounter at the Advanced Placement level. Algebra I provides a formal development of the algebraic skills and concepts necessm for students who will take other advanced college-preparatory courses. In particular, the instructional program in this course provides for the use of algebraic skills in a wide range of problem-solving situations. The concept of function is emphasized throughout the course. Topics include: (1 operations with real numbers, 2) linear equations and inequalities. (3) relations and functions, (4) graphing linear equations and inequalities, (5) pairs of linegr equations and inequalities, (6) polynomials. (7) algebraic ?mctions. (8) quadratic, cubic, and radical equations, and (9) mathematical reasoning and problem solving. Geometr Grade: 9 Credit: 1 Prerequisite: Algebra I In this course. students use geometric methods, properties and relationships as a means to recognize. draw. describe. connect. and analyze shapes and representations in the physical world. Students will also apply algebraic models and probabilities to physical applications. Students develop powers of spatial visualization while building their understanding of geometric ?gures. Students develop an understanding of the deductive reasoning method. Through applications and measurements, students use and strengthen their algebra skills. Geomem offers students many opportunities to explore geometric situations, develop conjectures and prove coniectures using a variety of methods. Geometry students examine the properties of two-and three- dimensional objects. Proof and logic, as well as investigative strategies in drawing conclusions, are stressed. Properties and relationships of geometric objects include the study of: (1) points, lines, angles, and planes, 2) polygons. with a special focus on quadrilaterals, triangles, right triangles; (3) circles; and (4) polyhedral and other solids. Algebra II: Grade: 10 Credit: 1 Prerequisite: Algebra I Students in this course use algebraic methods to explore, model and describe patterns, relationships and functions involving numbers, shapes, data and graphs within a varieg of real-world problem solving situations. They represent problem situations using discrete structures such as ?nite graphs, matrices. sequences and recurrence relations. This course reviews and builds on those concepts learned in Algebra I and Geomem. It places more emphasis on applying the basic concepts of Algebra to rationll numbers and irratioan numbers. The course expands techniques in analytical geometry and trigonometry learned in Geome? as a preview of the next two courses offered. Algebra II is a course which extends the content of Algebra I and provides further development of the concept of a function. Topics include: (1 relations, functions. equations. and inequalities: (2) conic sections: (3) polynomials: (4) algebraic functions; (5) lo arithmic and ex onential functions 6 se uences and series and 7 countin rinci les and robabili Graphing calculator technology is frequently used in this course. was. Grade: 11 Credit: 1 Prerequisite: Algebra II In Pre Calculus, students use symbolic reasoning and analytical methods to represent mathematical situations. to express generalizations. and to study mathematical concepts and the relationships among them. Students use ?mctions, equations, and limits as useful tools for expressing generalizations and as means for Page 387 analyzing and understanding a broad variety of mathematical relationships. Students also use functions as well as symbolic reasoning to represent and connect ideas in geomem, probabilig, statistics, trigonomem, and calculus and to model physical situations. Students use a varieg of representations (concrete, pictorial, numerical. symbolic, graphical. and verbal), tools, and technology (including, but not limited to, calculators with graphing capabilities, data collection devices, and computers) to model functions and equations and solve real-life problems. As they do mathematics, students continually use problem solving, language and communication. and reasoning (iusti?cation and proof) to make connections within and outside mathematics. Students also use multiple representations, technology, applications and modeling, and numerical ?uencv in problem-solving contexts. AP Statistics Grade: 10-11-12 Credit: 1 Prereguisite: Pre AP Algebra 1, Teacher Recommendation Students are introduced to maior concepts and tools for collecting. analyzing, and draw conclusions from data. This course prepares students for the College Board AP Statistics Examination for possible college (one-semester. non-calculus based statistics) credit. Students collecL organize, analyze. intemret, and report data using statistical formulas and processes. Students distinguish between random sampling and biased sampling. Students use statistical measures to analyze real-world phenomena. Upon completion of this course students are well prepared and expected to take the Advanced Placement Statistics test which can result in one semester of college credit. Successful Completion of the AP Exam for any AP course will allow for acqui_sition of college credit upon approval of the college. For Advanced Placement courses please access more information on the intemet at the web address AP Calculus AB Grade: 11-12 Credit: 1 Prereguisite: Pre AP Algebra 11, Teacher Recommendation Students explore functions, graphs, limits, derivatives, and integrals. This course prepares students for the College Board AP Calculus AB Examination for possible college credit semester calculus). For Advanced Placement courses, please access more information on the intemet at the web address AP Calculus BC Grade: 11-12 Credit: 1 Prereqpisite: Pre AP Algebra II, Teacher Recommendation Students explore all topics covered in AP Calculus AB plus additional topics including parametric, polar, and vector ?inctions and polynomial approximations and series. This course prepares students for the College Board AP Calculus BC Examination for possible college credit (a full year of calculus). This exam also has a Calculus AB sub-score ggade for students to receive semester college calculus credit. For Advance Placement courses, please access more information on the internet at the web address Grade: 9-10 Credit: 1.00 (2 semesters) Prereguisite: None Biology is designed to acquaint students with basic concepts in science process skills, laboratog skills, and the study of cells, DNA, genetics, the living kingdoms on our earth and how they interact. A study of the fundamental concepts. including the origin and development of life, the similarigy of living organisms, the classi?cation, characteristics, structure, reproduction and ?mction of plants and animals, as well as the interrelationships of plants, animals and the physical environment. 42 Page 388 V. Biology Grade: 9-1 0 Credit: 1.00 (2 semesters} Prerequisite: Enrollment in Honor class and teacher recommendation Biology is desigped to acquaint students with basic concepts in science process skills, laboratog skills, and the living kingdoms on our earth and how they interact. A study of the fundamental concepts, including the origin and development of life. the similarity of living organisms. the Llassi?cation. characteristics, structure, reproduction and function of plants and animals, as well as the interrelationships of plants, animals and the physical environment. The first semester?s study includes the study of cells, DNA, genetics. The class can be considered college preparatopy, suggested for the average to above average student. AP Biology Grade: 10 Credit: 1.0012 semesters) Prerequisite: Biology, Chemistry Honors or an in Chemistgy or Teacher approval This course covers the ?rst year college curriculum and prepares students to take the AP Biology exam. Emphasis is on developing the conceptual framework. knowledge. and analytical skills to understand, and participate in, the modern ?eld of biology. The curriculum includes the study of molecular, cellular, ecological, and evolutionm biology, presented in a varieg of formats, including class discussions, readings, lab work, and lecture. Students interested in this course should be successful independent learners with a strong interest in the ?eld of biology. . Chemistry Grade: 10-11 Credit: 1.00 (2 semesters} Prerequisite: None Chemis? provides a broad survey of basic chemis?. The ?rst semester examines chemical and physical properties, the qualitative nature of chemical reactions, chemical periodicig, and bonding. The second semester continues with the quantitative nature of chemical reactions, states of matter, gaseous behavior, solutions, equilibrium, and acid-base chemis?. Throughout the year, the course makes use of laboratom investigations to develop the relationships between experiment and theory. Chemistry Grade: 10-11 Credit: 1.00 {2 semesters) Prerequisite: Biology and Teacher approval Chemis? covers many of the same topics as Chemis? in greater depth. Special emphasis is placed on a rigorous mathematical examination of chemical principles. The ?rst semester focuses on basic concepts of chemism including the qualitative nature of chemical reactions. atomic structure. chemical bondng and molecular geome?. The second semester opens with stoichiomet? and the quantitative nature of chemical equations. These concepts are then applied to various topics such as the kinetic theory of gases. condensed phases of matter, reaction kinetics, equilibrium, acid-base chemist_ry and oxidation-reduction chemistry. Interested students must meet with the teacher and get tegher?s approval. AP Chemistry Grade: 11 Credit: 1.0012 semesters) Prerequisite: Biology, Chemistpy, and Teacher approval The AP Chemistry course is designed to be the equivalent of the general chemistry course usually taken during the ?rst college year. Students in this course should attain a depth of understanding of fundamentals and a reasonable competence in dealing with chemical problems. The curriculum prepares students to take the AP chemis? exam for AP credit. Five general areas are intensively studied: the Structure of Matter, Chemical Bonding, States of Matter, Physical Chemism and Chemical Reactions. Advanced laboratom 4 Page 389 work is done in each topic area. Students are expected to take the AP Examination given by the Educational Testing Service in My, Physics Grade: 11-12 Credit: 1.00 {2 semesters) Prereguisites: Biology, ChemistrL and Teacher approval Physics, as the most basic of all sciences. introduces the nature of basic things around us such as matter, energy. heat. motion. forces. light and sound. This course has been designed to teach the laws of ngture in their simplicig, and problem solving skills corresponding to both in ideal and real world situations. The course of physics is integrated with veg basic mathematical rules includes mechanics, heat and thermodynamics, waves and optics, electricig and magnetism, and atomic and nuclear physics. A set of experiments will allow students to implement the theory into the real world and appreciate the beauty of the natural world. Physics Grade: 11 Credit: 1.0012 semesters) Prereguisites: Biology, ChemistrL and Teacher approval This advanced level physics course will allow students to learn the same physical concepts with more depth and mathematical basis. The purpose of this course is to prepare students for the college level physics courses. AP Physics Grade: 12 Credit: 1.0012 semesters) Prerequisites: Biology, Chemistry, and Teacher approval This course is designed to introduce a college level. calculus based physics course with a set of advanced laboratory experiments. The students of AP Physics course will be well prepared to the College Board?s advance placement physics exam. Also. students will have the opportuniy to receive college credits if they ?n pass the advance placement exam with a satisfactory grade. AP Physics is recommended to the students who would like to pursue a profession in the ?elds of science, engineering, and medicine. Environmental Science Grade: 12 Credit: 1.00 (2 semesters) Prereguisites: Biology, Chemistry, and Physics Environmental Science is designed to provide students the environmental gspects. explore Earth?s n_atural systems, and impacts of human activipg on the environment. The topics covered in this course are introduction to ecology. the atmosphere of the Earth. food on Earth. water. and energy. The theory is supported with lab and ?eld investigations, and discussions in cooperative learning groups on environmental issues enable students to improve their critical thinking, and problem solving skills. Students are expected to become more sensitive on environmental issues. Environmental Science Grade: 12 Credit: 1.00 (2 semesters) Prereguisites: BiologL Chemistpy, and Physics Environmental Science is designed to provide students the environmental aspects, explore Earth?s natural systems, and impacts of human activiLy on the environment in more details, The topics covered in this course are introduction to ecology, the atmosphere of the Earth, food on Earth, water, and energy. The theom is supported with lab and ?eld investigations, and discussions in coopegltive learning groups on environmental issues enable students to improve their critical thinking, and problem solving skills. Students are expected to become more sensitive on environmentpl issues. Page 390 World Geography Grade: 9 Credit: 1.00 (2 semesters} Prereguisites: Social Studies 8 In World Geoggaphy Studies, students examine people, places, and environments at local, regional, national, and international scales from the spatial and ecological perspectives of geography. Students describe the in?uence of geoggaphy on events of the past and present. A sigpi?cant portion of the course centers around the thsical processes that shape patterns in the physical environment; the characteristics of major land forms, climates, and ecosystems and their interrelationships; the political, economic, and social processes that shape cultural patterns of regions; apes and patterns of settlement; the distribution and movement of world population; relationships among people, places, and environments; and the concept of region. Students analyze how location affects economic activities in different economic systems throughout the world. Students identi? the processes that in?uence political divisions of the planet and analyze how different points of view affect the development of public policies. Students compare how components of culture shape the characteristics of regions and analyze the impact of technology and human modi?cations on the physical environment. Students use problem-solving and decision-making skills to ps_k and answer geographic questions. World Histogy Grade: 10 Credit: 1.00 (2 semesters! Prereguisites: World Geogpaphy World Histom Studies is the only course offering students an overview of the entire histog of humankind. The major emphasis is on the study of sigpi?cant people, events, and issues from the earliest times to the present. Traditional historical points of reference in world histou are identi?ed as students analyze important events and issues in western civilization as well as in civilizations in other parts of the world. Students evaluate the causes and effects of political and economic imperialism and of major political revolutions since the 17th centurv. Students examine the impact of geographic factors on major historic events and identi? the historic origins of contemporary economic systems. Students analyze the process by which democratic-republican governments evolved as well as the ideas from historic documents that in?uenced that process. Students trace the historical development of important legal and political concepts. Students examine the history and impact of major religious and philosophical traditions. Students analyze the connections between major developments in science and technology and the growth of industrial economies, and they use the process of historical inguig to research, integpret, and use multiple sources of evidence. Advanced Placement (AP) World History Grade: 10 Credit: 1.00 (2 semesters) Prereguisites: Teacher and Administration Approval The AP World Histom course is designed to provide students with the analytic skills and factual knowledge necessm to deal critically with the problems and materials in world histog. The program prepares students for intermediate and advanced college courses. Students learn to access historical materials and scholarship and evaluate their reliyabilitv and importance. This course develops the skills necessary to arrive at conclusions on the basis of an informed judgment and to present reasons and evidence clearly and persuasively in essav format. United States Hi_storv since Grade 11 Credit: 1.00 (2 semesters) Prerequisites: World Historv Page 391 In this course, which is the second part of a two-year study of US. histogr that begins in Grade 8, students study the histog of the United States since Reconstruction to the present. Historical content focuses on the politicalaeconomic. and social events and issues related to industrialization and urbanization, major wars, domestic and foreigp policies of the Cold War and post-Cold War eras, and reform movements including civil rights. Students examine the impact of geographic factors on major events and analvze causes and effects of the Great Depression. Students examine the impact of constitutional issues on American societv. evaluate the dynamic relationship of the three branches of the federal government, and analyze efforts to expand the democratic process. Students describe the relationship between the arts and the times during which they were created. Students analyze the impact of technological innovations on the American labor movement. Students use critical-thinking skills to explain and apply different methods that historians use to interpret the pas; including points of view and historical context. Advanced Placement (AP) United States History Grade: 11 Credit: 1.00 {2 semesters) Prereguisites: Teacher and Administration Approval The AP US. Histom course is designed to provide students with the analytic skills and factual knowledge necessarv to deal critically with the problems and materials in US. history. The program prepares students for intermediate and advanced college courses. Students learn to access historical m_aterials and scholarship and evaluate their reliabilig and importance. This course develops the skills necessarv to arrive at conclusions on the basis of an informed judgment and to present reasons and evidence clearly and persuasively in essav forma_t. Advanced Placement (AP) European History Grade 12 Credit: 1.00 (2 semesters! Prereguisites: Teacher and Administration Approval The AP European Histog course is desigped to provide students with the analytic skills and factual knowledge necessarv to deal critically with the problems and materials in US. histogr. The program prepares students for intermediate and advanced college courses. Students learn to access historical materials and scholarship and evaluate their reliabilig and importance. This course develops the skills necessm to arrive at conclusions on the basis of an informed judgment and to present reasons and evidence clearly and persuasively in essay format. United States Government Grade 12 Credit: .5 (1 semesters) Prereguisites: United States History since Reconstruction In Govemmena the focus is on the principles and beliefs upon which the United States was founded and on the structure, functions, and powers of government at the national, state, and local levels. This course is the culmination of the civic and governmental content and concepts studied ?om Kindergarten through required secondary courses. Students learn major political ideas and forms of government in history. A sigpi?cant focus of the course is on the US. Constitution, its underlying principles and ideas, and the form of government it created. Students analyze major concepts of republicanism, federalism, checks and balances, separation of powers, popular sovereigpg, and individual rights and compare the US. svstem of government with other political systems. Students identi? the role of government in the US. free enterprise system and examine the strategic importance of places to the United States. Students analyze the impact of individuals, political parties, interest groups. and the media on the American political system, evaluate the importance of voluntm individual participation in a democratic sociegr, and analvze the rights guaranteed by the US. Constitution. Students examine the relationship between governmental policies and the culture of the United States. Students identi? examples of government policies that encourage scienti?c research and use critical-thinking skills to create a product on a contemporary government issue. Grade: 9, 10, ll, 1 Page 392 Credit: .5 (1 semester) Prerequisites: Teacher and Administration Approval In an elective course. students consider the development of the individual and the personglitv. The study of is based on an historical framework and relies on effective collection and analysis of data. Students studv tonics such as theories of human development. personality. motivation. and learning Sociology Grade: 9, 10, 11, 12 Credit: .5 (1 semester) Prerequisites: Teacher and Administration Approval In Sociology, an elective course, students study dynamics and models of individual and ggoup relationships. Students study topics such as the histog and systems of sociology, cultural and social norms, social institutions and mass communication. Digital Graphics and Animation Grade: 9 Credit: 1.00 (2 semesters) Prerequisite: None Digital Graphics and Animation is an introductom course in design, upoggaphy. and imaging techniques. The course includes topics such as digital composition, color, imaging, editing, and animation. An integral component in other areas, understanding design elements is essential in the creation of a successful product in this course. The student will use the computer's set of tools, common to bitrnapped and object-oriented software programs, to produce and edit digital designs as well as to incopporate desigp principles when capturing digital images with the scanner and camera. Students will work with color, resolution, and halftones as well as other image enhancing strategies including outlining, cropping, digital manipulation, color correction, masking, and the use of channels, paths, background, and layers. Animation, both 2-D and 3-D. will be introduced in this course. Students enrolled in this course will be computer litmte and 1% experience with the basic electronic productiviy and telecommunication tools. A prerequisite for this course is grades 6-8 Technology Applications Knowledge and Skills. 221mm Grade: 10 Credit: 1.00 {2 semesters) Prerequisite: None The World Wide Web is the fastest growing part of the Internet. The populariy of the is due largely to the ease with which users can not only access and navigate the web but also create pages of information to share with others Students will learn how to design. create. maintain web pages. Proiects will incomorate tools such as HTML, Dreamweaver, Photoshop, Flash, Fireworks, digital cameras, and scanners. Video Technology Grade: 11 Credit: 1.00 (2 semesters! Prerequisite: None Video production is probably the most universally known of all visual media and is an integral component of many technology applications. The process of editing creates a special mood, tempo, and pace to enhance the subject matter. Video production is not only instructional and analytical, but also artistic. Students will learn video basics as well as participate in pre?production, production, and post production stages of video creation, distribution, and evaluation of the product. Students enrolled in this course will be computer literate and have experience with the basic electronic productivity tools. Computer Science 1 Grade: 9, 10, 11, 12 Credit: 1.00 (2 semesters) Page 393 Prerequisite: Teacher Recommendation Computer Science involves the understanding of programming langpage concepts and how these are applied to problem solving. The enormous growth of programming languages requires a changing curriculum and ?exibiliry in the pace of instruction. Computer Science I is a course covering problem solving, computer architecture, and programming concepts. This knowledge helps students understand how software is written which increases the student's ability to learn application software through understanding of the basic concepts. Students can study Computer Science to comprehend the social, economic and cultural environment of the information age. Programming equips students with skills which involve much more than the syntax of a programming language. Computer programs are a form of communication. When developing program solutions, students consider clarig of expressing (readabilig program maintenance, ease of debugging, program extension, reliability, utiliy, and validity. Concept masteg of a high level language, while creating solutions which are well structured and modular in npture. is the primary emphasis rather than syntax. Computer Science 11 Grade: 9, 10, 11, 12 Credit: 1.00 (2 semesters) Prerequisite: Computer science 1 and Teacher approval Computer Science reinforces and increases the depth of understanding of the basic concepts and covers advanced programming concepts which are useful in preparation for the Computer Science Advanced Placement tests. Multimedia Grade: 9, 10, 11, 12 Credit: 1.00 (2 semesters) Prerequisite: Teacher approval Multimedia is a laboratom-based course designed to provide an overview of and experience in multimedia technology. Sounds. images, graphics, and video are the informational projects from which students will construct media rich knowledge structures. Students will develop skills and obtain hands-on experiences working with a variepg of multimedia tools to build linear and non-linear interactive products. Students enrolled in this course will be computer literate and have experience with basic electronic productivig tools. Robotics Grade: 9, 10, 11, 12 Credit: 1.0012 semesters) Prerequisite: Teacher approval This course explores concepts related to basic residential wiring, serial and parallel electrical circuits. and wiring connections. The students will also learn about desigping and etching a solid state electronic project. Projects will allow students to desigp and build computer interface boards. learn basic computer programming, and master the control of simple robot ?mctions. Other skills covered include soldering, metering, and working with resistors. Business Computer Information Systems I Grade: 9,10,11 Credit: 1.0012 semesters! Prerequisite: None Students implement personal and interpersonal skills to strengthen individual performance in the workplace and in society and to make a successful transition to the workforce and/or post-secondary education. Students apply technical skills to address business applications of emerging technologies. Business Computer Information Systems 11 Grade: 9, 10, 11 Credit: 1.00 (2 semesters) Page 394 Prereguisite: Microcomputer Applications, An occupationally speci?c course (pre-employment laboratog or cooperative education) designed to provide advanced training in concepts and skills related to computer applications. Special emphasis is placed on computer operations, word processing, database management, spreadsheet manipulation, telecommunications, desktop publishing. and other high-level business application so?ware. The course may be taught as a pre-employment laboratopy or as cooperative education. The course is approved for computer proficiency credit. Spanish I Grades: 9-12 Credit 1.0 (2 semesters) Prerequisites: Spanish 8 This class serves as an introduction to the basics of the Spanish language. The basics of speaking, reading, listening, writing and comprehension are taught. as are aspects of the culture in countries where Spanish is spoken. An emphasis is placed on speaking and comprehension of Spanish. Class participation is reguired, as is dailv studv and practice time (outside of the classroom) to ensure the student?s success in the course. Spanish II - 1.0 credit (2 terms) Grades: 9-12 Credit 1.0 (2 semesters) Prereguisites: Spanish I This class serves to further develop the student?s abilig to use the Spanish language. Speaking, reading, listening, writing and comprehension of Spanish are taught, as is the culture of the countries where the language is spoken. An emphasis is placed on speaking and comprehension of Spanish. Class participation is required as is daily study and practice time (outside of the classroom) to eigure the student?s success in the course. Grades: 10-12 Credit 1.0 (2 semesters) Prereguisites: Spanish This class serves to further develop the student?s abilig to use the Spanish language. More emphasis is placed on the culture of Spanish?speaking countries than in previous levels, as well as a higher emphasis on the utilization of Spanish in conversation, presentations, etc. Texts, films and other cultural resources are studied Class artici ation is re uired as is dail stud and ractice time outside of the classroom) to ensure the student?s success in the course. Spanish IV Grades: 10-12 Credit 1.0 12 semesters) Prereguisites: Spanish 1111 This class seeks to develop the student?s abilig to utilize Spanish to the point of maste?. A higher emphasis is placed on the reading of texts, watching of ?lms and studying the histom and culture from the countries where anish is oken. Class artici ation is re uired as is dail stud and ractice time outside of the classroom) to ensure the student?s success in the course. All MSE teachers will have a copv of and will use the Tennessee Standards that correspond to the classes they are teaching. MSE curriculum will have academic as well as non-academic standards that ever_'y student must meet. In their syllabi and lesson plans, teachers will be muired to cite which learning standards they are addressing and how the content and performance standards align with those of the Tennessee Content standards. The Principal Page 395 will con?rm that all lessons and academic goals are aligned with the Tennessee Standards and will take appropriate action to guide teachers in meeting the Standards. The objectives of the math, science, and technology curriculum of Memphis School of Excellence are to; 1. Meet the cognitive, social, and affective needs of our students with multiple intelligences by offering the following practices through integration of technology into curriculum; core knowledge, thematic approach, cross-disciplinary project-based learning, experiential learning, community-based learning, and performance assessment. Instill in our students, teachers, and parents a culture of inquiry, ?eld observation, research, and hands-on practice in science and technology and communicate high expectations to students by acknowledgement of academic success, to teachers by emphasizing staff development, and to parents by advocating parental involvement. Produce and prepare high school students and leaders of tomorrow with high expertise and positive character traits for science and technology related careers, such as engineering, health, math, biology, chemistry, astronomy, environmental sciences, genetics, etc. Enable students to develop research skills, practice their scienti?c knowledge through experimentation, and demonstrate their skills and ?nal products in extracurricular activities, displays, fairs, competitions, and science Olympiads. Establish partnerships with post-secondary institutions in forms of research study, internships, dual credit programs, and other innovative practices. Expose our students to professional workforce experience by adopting policies, creating opportunities, establishing school networks, and allowing changes in curriculum to attract community resources and private businesses. Consider each student of diverse backgrounds as an individual and provide career guidance by personalizing graduation plans, list of electives, their research area of interest, and college choice. Instructional Methods Students will be provided with opportunities to expand their mental and physical abilities in socially acceptable activities. Students and teachers will be considered as partners in the students? educational program, where there will be mutual respect and support. We believe that addressing students? successes and setbacks are equally important for the students? growth. Because thought and expression develop out of experience, learning should nurture a sense of caring for other people and the environment. The following list is examples of teaching methods that will be utilized by the instructional staff throughout the year at Memphis School of Excellence. Page 396 The thematic approach will be used as the basis for planning six-week academic term. The theme topic will be driven by student interest and group consensus. Once a theme topic is chosen, a variety of core activities across the curriculum will be brainstormed by group members. Students will then examine these activities and choose several to complete, based on time constraints, group and individual interest, availability of camp and community resources, and general compatibility with the school program. The group will then set a schedule of completion with input from program, education, and other support staff. Cooperative learning will be integral and essential to all learning experiences. Success will be measured at the group level as well as the individual level. Group work and portfolio work will be an essential part of the therapy that will take place in the program, so it will become a natural part of instructional opportunities as well. Goal-setting will be another strategy that bridges academic and therapeutic boundaries. Students will be expected to write long-term and short-term goals for every aspect of their life. Educational goals will be evaluated for every activity throughout the day. Goals will be expected to be realistic, reliable, and measurable. Individualized instruction will be one of the most important instructional strategies of Memphis School of Excellence, which will be provided to students all the time they need. It will be accommodated in group settings because of the favorable student/teacher ratio. Each student?s education plan will be individualized according to his or her education, emotional, and needs. By using a multi-sensory approach to learning, students will be provided opportunities to learn through auditory, visual, tactile, and kinesthetic activities. Students will be guided through the process of determining which learning style is best suited to their needs. In Role modeling, teachers will actively participate in the daily routine and educational process of the group. The power of role modeling is especially important in demonstrating a respect for others and the environment. Page 397 Modular Instruction; A leamer-centered and self-directed learning experience will be designed for individuals or for small teams in the school. Learning teams will be randomly assigned so cooperation will be required of students who may be from diverse backgrounds or groups. Simulation is a learning process that involves students as participants in role-playing presentations and/or problem-solving games imitating real-life situations or workplace environments will be used as instructional strategies. Demonstrations; Showing practical applications of theory, product, or equipment; will be done by teacher, guest, and/or students. There are many forms of Multiple Intelligence; many ways by which we know, understand, and learn about the world. Seven intelligences have been identi?ed: verbal/linguistic, logical/mathematical, visual/spatial, body/kinesthetic, interpersonal, and interpersonal. Instructional staff will use the following areas to challenge the students' various intelligences. Visual/Spatial: charts, graphs, photography, visual awareness, organizers, visual metaphors, visual analogies, visual puzzles, 3D experiences, painting, illustrations, story maps, visualizing, sketching, patterning, mind maps, color, and symbols. 0 Verbal/Linguistic: stories, retelling, journals, process writing, reader's theatre, storytelling, choral speaking, rehearsed reading, book making, speaking, non?ction reading, research, speeches, presentations, listening, reading, reading aloud, and drama. 0 Bodily Kinesthetic: ?eld trips, activities, creative movement, hands on experiments, body language, manipulative, physical education activities, crafts, and drama. 0 Logical/Mathematical: problem solving, tangrams, coding, geometry, measuring, classifying, predicting, logic games, data collecting, serialing, attributes, experimenting, puzzles, manipulative, scienti?c model, money, time, sequencing, and critical thinking. 0 singing, humming, rap, background music, music appreciation, mood music, patterns, form, and playing instruments. 0 Intrapersonal: individual study, personal goal setting, individual projects, journal log keeping, personal response, personal choice, individualized reading, and self-esteem activities. 52 Page 398 Interpersonal: co-operative learning, sharing, group work, peer teaching, social awareness, con?ict mediation, discussion, peer editing, cross age tutoring, social gathering, study groups, clubs, and brainstorming. Strong Reading and Writing Emphasis: English teachers and ELL teacher focus on pronunciation and spelling of vocabulary used in the classroom, cafeteria, home, and school. All classroom teachers and parents are involved in and out of class in helping children overcome typical errors in English in intonation, pluralizations, grammar, tenses, etc. High school students are also be trained with Literary, Interpretative and Creative Writing skills. . Grade Advancement Policy: The school develops a grade advancement policy for exceptional learners who demonstrate outstanding skills in Reading, Science, and Mathematics. Acceleration of the student allows the student to continue his or her education at his or her own pace. Performance Assessments: Performance assessments - also known as "alternative" or "authentic" assessments -- augment norm-referenced multiple-choice tests in all grade levels. Portfolios and presentations are widely used. Cross-disciplinary learning: Students work on projects that require cooperative teaching efforts in Language Arts, Fine Arts, Math, Social Studies and Science. Teachers make cooperative lesson plans and student product consists of material covered in different subjects. Character Education and Leadership development: The aims of education are to support the growth of pupils' whole personality. The cognitive goals of education are to strengthen study skills and thinking skills of pupils. The affective and social goals of education are met by providing socio-ethical and aesthetic education alongside the conventional learning of facts. Keeping these in mind, a strong character education and leadership development program are implemented at all grade levels. The Character Education class encourages students to take responsibility for their actions. It aims to familiarize them with good character traits, to place teachers as role models before them and to help develop good citizens with high moral values. Career Education: All students attend an annual Career Day at Memphis School of Excellence and meet professionals from different occupations. 8th graders and high school students take a Page 399 ?Career Choices? class. The purpose of this program is to enable students to apply the knowledge and skills needed to design personal plans for achieving their goals in college and after college. Career Education attempts to give general information about career theories, opportunities, tests, ?nancial aid, scholarships, and instill in the student college awareness through preparing him/her for the senior year in high school. Dual-credit: Students in high school especially in their junior and senior year have completed many of the credits required by the state. These last two years are a perfect period to sign up for AP classes and dual credit program. Students are encouraged to take at least 15 hours of college credit. Individual Graduation Plan (1GP): The school counselor acts as an advisor who helps the student make an individual graduation plan. The plan consists of a four year plan that outlines the career track, classes that the student will sign up for, electives, research area, AP courses, and dual credits. The counselor meets with the student twice a year to check the progress and update the plan. The student?s ?le must include academic and weaknesses, TCAP scores, EXPLORE, PLAN, scores, all credits, and any transfer credit. The counselors are highly quali?ed and use software programs to keep track of the IGPs. For students who are in danger of not graduating in time, tutorials are arranged with their teachers (all Memphis School of Excellence teachers are highly quali?ed) and paper-based and online diagnostic assessments are done frequently to track the progress. Participation in Contests: Students in gifted and talented and the regular program are encouraged to participate in local, statewide, national and international competitions. This keeps the students engaged and excited about learning. Some of these competitions are American Mathematics Contest (AMC), Math League, Math Counts, International Science Olympiads, Science Fair, Science Olympiad, History Fair, Geography Bee, Spelling Bee, Science Bowl, and Art Exhibitions. Integration of technology into curriculum and Constructivist Learning Another recent change in the area of learning and teaching is due to the emerging concept of human, knowledge and learning that refers to cognition-based views on learning and to constructivism in particular. If constructivist principles are implemented in teaching practices, they will certainly have an effect on teachers' and students' roles. The modern concepts of Page 400 learning emphasize the students' responsibility for their own learning and their active role in seeking and using information. The role of the teacher changes from being an information- transmitter into being an instructor who guides the students. This innovation is a great step towards individualizing education. Technology contributes to (1) student learning through involvement with authentic, challenging tasks; (2) professionalization of teachers; and (3) creation of a culture that supports learning both in the classroom and beyond the school walls. By using a multi-sensory approach to learning, students will be provided with opportunities to learn through auditory, visual, tactile, and kinesthetic activities. Students will be guided through the process of determining which learning style is best suited to their needs. Technology helps students by making learning fun. The Internet allows students to explore resources, new horizons, and other people. Computers can be used to individualize education for students. Students can pace themselves and drills, simulations and games can contribute to regular class teaching. Technology, if used wisely, is a most useful tool for teachers. Teachers learn how to use technology to the bene?t of children. Teacher?s role is to facilitate learning by offering different learning styles through the use of multimedia instructional aids. Teachers have access to their laptops 24 hours. By establishing safety and general use guidelines, faculty will be able to bene?t from technology constantly. Teachers have cell phones that are open to calls from students and parents. Communication through computers allows students and faculty to exchange ideas and information instantaneously. Our school offers an online database which keeps the school community informed of everything from grades to meetings. Parents are given a usemame and a password to check their children?s attendance, homework, grades, conduct, teacher comments and messages from school. The school offers online drills and homework for some classes. Students take tests, do drills, and write reports at their own pace. The feedback is sent to the teacher and parent immediately. Page 401 The school employs an instructional technologist who will educate the administration and faculty on effective ways of integrating technology into education. This person is responsible for laying out a technology infrastructure plan for technology use across the disciplines. Dean of academics will be in charge of integrating and incorporating these strategies to the taught curriculum. MSE will make sure that teachers receive appropriate trainings in the individualized learning spiles, multiple intelligences, ELL enrichment, traditional teaching in interdisciplingy classes, collaborative classrooms, projects. service-based learning, core knowledge, and inguin- based learning. During department and grade level meetings, teachers will discuss the appropriate strategies to incogporate in their classroom. Graduation Requirements Memphis School of Excellence will implement the graduation requirements mandated by 0520-1-3-.06 Memphis School of Excellence will offer its students the options graduation path as follows. To meet the requirements for all diplomas, a student must have attained an approved attendance, conduct and subject matter record, which includes a completed graduation path. MSE will award following types of diplomas/certi?cates to students who qualify. 1) The Regular Diploma 2) The Academic Honors Diploma 3) The Distinguished Scholars Diploma 4) Certi?cate of IEP The Regular Diploma shall be awarded to students who: 1. Earn the speci?ed 22 units of credit in the Ready Core program (Students with disabilities will be included in regular classes to the degree possible and with appropriate support and accommodations. To earn a regular high school diploma, students with disabilities must earn the prescribed 22 credit minimum. 2. Have an opportunity to take an exit exam to assess readiness for the work place or higher education. ,or Work Keys) 3. have satisfactory records of attendance and conduct. 4. Conduct a senior capstone project such as, but not limited to Senior project Internship Work based learning Service learning (minimum 40 hours) Community Service (minimum 40 hours) 5 Page 402 Requirements for a regular high school diploma Required Subjects Credits Minimum Required Courses . - English I English I Honors - English II English 54? Honors - English Ill English fHonorsr?AP Language - English English lV/Honors/ AP Literature Math 0 Algebra I Geometrv - Geometrv Algebra 1] One and Upper level math ., - Biologv Biologv Honors-l Credit - Chemistrv or thsics 2 - Students will take another one credit course in science based on their interest and prerequisite requirements. US Historv (Honors or AP) -1 Credit - Economics?1.32 Social Studies 3 Credit - Government?U2 Credit - (World Geographv. World Historv. AP World Geographv. AP World l-listow. AP European Historv)-l Credit W3 2 credits in the same language. Wellness?l Credit P.E.-O.5 credit __Personal Finance Persona] Finance-0.5 Credit Visual/Performing Arts 1 Visual Arts-l Credit Preparation-I Credit Students will choose 3 elective courses based on their need and interest. CTE Courses Computer Education 1 Total 2 The Academic Honors Diploma shall be awarded to students who: Earn the speci?ed 22 units of credit in the Ready Core Program. 2. Attain an 85?92 average for the high school career and completing at least one of the following: a earn a nationally recognized industrv certi?cation b. participate in at least one ofthe Governor?s Schools participate in one ofthe state?s All State musical organizations d. be selected as a National Merit Finalist of Semi?Finalist (IQ attain a score offal or higher composite score on the ACT attain a score of 3 or higher on at least two advanced placement exams earn 12 or more semester hours oftranscripted postseeondarv credit Page 403 3. Students who score at or above all of the subject area readiness benchmarks on the ACT or equivalent score on the SAT will graduate with honors. 4. have satisfactorv records of attendance and conduct. 5. Conduct a senior capstone project such as, but not limited to Senior project Internship Work based learning Service learning (minimum 40 hours) Community Service (minimum 40 hours) The Distinguished Diploma shall be awarded to students who: 1. Earn the speci?ed 22 units of credit in the Scholars Program. 2. Attain an 93-100 average for the high school career and completing at least one of the following: earn a nationally recogpiged industly certi?cation participate in at least one of the Govemor?s Schools participate in one of the state?s All State musical organizations be selected as a Nation_al Merit of Semi-Finalist attain a score of 31 or higher composite score on the ACT attain a score of 3 or higher on at least two advanced placement exams earn 12 or more semester hours of transcripted postsecondm credit 3. Students who score at or above all of the subject area readiness benchmarks on the ACT or eguivalent score on the SAT will graduate with honors. 4. have satisfactory records of attendance and conduct. 5. Conduct a senior capstone project such as, but not limited to Senior project Internship Work based learning Service learning (minimum 40 hours) Community Service (minimum 40 hours) Examinations End-of-course examinations will be given in English 1, English 11, English Algebra I, Geome?, Algebra II, US. Histog= Biology 1, Chemism and Physics. Further, the results of these examinations will be factored into the student?s grade at a percentage determined by the State Board of Education in accordance with T.C.A. ?49-1-302 (2). The weight of the end-of-course examination on the student?s course average is as follows for entering 9th ggaders: 58 Page 404 I. Fall of 2010 20% II. Fall 0f2011 and 2012-25% Fall of 2013 and thereafter 25% The students are not required to pass anv one examination. but instead the students need to achieve a passing score for the courses. The Certi?cate of IEP shall be awarded to students who: Complete an Individualized Education Program successfullv completed a portfolio have satisfactorv records of attendance and conduct. bllit?I Sample four-year program: Grade 9 Grade 10 Grade 11 Grade 12 English 1 English 11 English English IV Pie-Calculus with Algebra Geometw Algebra II . Bioloszv I Chemistrv I thsics I Biologv-AP World Geographv U.S. Historv Government/Economics Elective thsical Education/ Wellness Visual Arts I Elective Personal Finance Foreign Language I Foreinn [1 Computer Literacv Elective Sample program for students who enter with high school credits earned in middle school: Grade 9 Grade 10 Grade 11 Grade 12 English I -Honors English II - Honors English -I-Ionors English Literature-AP Pie-Calculus with Geometrv -Honors Algebra II Honors Calculus AB - AP Trig= onometry Biolouv I ~Honors Chemistw I thsics I Chemistrv - AP Foreign Language I Foreign Language II Foreign Language Foreign Language -AP Page 405 Visual Arts I World Geographv US. Historv - AP Government/Economics thsical Education/ Interactive Multimedia Wellness . Elective Personal Finance Desmn Grading Policy Memphis School of Excellence will use the uniform grading system for students enrolled in grades nine through twelve (9-12) as mandated in 0520-1-3-.05. Percentage Range Weighting for Honors Courses and Weighting for Advanced Placement and National Industry Certi?cation International Baccalaureate Courses 100 May include the addition of3 May include the addition ofS percentage 92 percentage points to the grades points to the grades used to calculate the used to calculate the semester semester average. 34 74 69 Instructional Arrangements for Special Education Students Dependingr on needs ol?wecial education student. IEP committee will consider instructional placement options for the student. These Options mav include mainstream. inclusion. resource room. self?contained classroom. etc. Student-centered curriculum will also provide opportunities for special education students to engage in individualized learning. curriculum and instructional program was designed in a wav that all needs oi'exceptional students are met. Furthermore. supplementarv aids and services. accommodations. and modi?cations will be integrated into instructional plan of students with disabilities. The plan complies with all federal and state regulations. A variety of instructional arrangements and settings is provided along a continuum from the least restrictive to the most restrictive environment. The team, when placing a student in special education, considers all available options in the process of determining the most appropriate instructional setting(s) for the student. Page 406 Each student with disabilities will have available a six-hour instructional day and seven-hour school day as provided for all other students. The IEP team shall determine the appropriate instructional setting and length of the instructional day as appropriate for each student with disabilities. As determined by the IEP meeting, students may be served in a combination of appropriate instructional arrangements during any given semester. Some of these arrangements are: Mainstream, Resource Room, Self-contained, Mild and Moderate, Regular Campus, Self- contained, Severe, Regular Campus, Vocational Adjustment Class, Homebound, Hospital Class, and Speech Therapy. In addition to these arrangements, MSE will provide direct services such as inclusive support, instructional modi?cations/accommodations, content mastery support, physical and occupational therapy, and consultation with special education staff. Referral and Identi?cation Process for Special Education Services Referral Process for special education services consists of Response to Intervention (RTI) method. According to this method, there are three main intervention categories. These categories include research-based scienti?c interventions that are applied prior to special education. Sample intervention forms are attached in Appendix D. RTI Tiered Intervention Categories: 1. Tier I interventions: These interventions are universal and available to all students. Teachers often deliver these interventions in the classroom. Tier I interventions are those strategies that instructors are likely to put into place at the ?rst sign that a student is struggling. 2. Tier II interventions: These interventions are individualized to the unique needs of struggling learners. They are reserved for students with signi?cant skill gaps who have failed to respond successfully to Tier I strategies. There are two different methods that can be used to deliver Tier II interventions: a) Problem-solving (Classroom-based) interventions: The classroom teacher is often responsible for carrying out these interventions. In this approach, the intervention can be customized to the student?s needs. However, developing intervention plans for individual students can be time consuming. b) Standard-protocol (Stand-alone) interventions: In this method, group intervention programs based on scienti?cally valid instructional practices are created to address frequent students referral concerns. These services are provided outside of the classroom. It is ef?cient and consistent because large numbers of students can be put into these group interventions. However, standard protocol Page 407 3. interventions cannot be often individualized easily to accommodate a speci?c student?s unique needs. Tier interventions: These interventions are the most intensive academic supports available in school and are generally reserved for students with severe and chronic academic delays or behavioral problems. They are mostly given only through special education. Identi?cation steps of a student with disabilities are as follows: 1. 2. 3. 4. Classroom teacher notices the sign of academic dif?culty. Teacher independently puts Tier I interventions into place and monitors/documents the performance. If the student fails Tier I, the teacher refers him/her to IEP Team for Tier II interventions by completing a referral form. IEP Team starts collecting data and meets with the teacher in order to brainstorm about interventions (must be scienti?c, research-based interventions) likely to meet the needs of the referred student. The student is observed/monitored with Tier II by IEP Team for a reasonable period of time (Ex: 6 weeks). If the student fails, change the intervention. A student, who continues to show chronic and signi?cant academic de?cits despite a history of intervention attempts, may need to be found eligible for special education. Then Tier 111. If a child continues to experience dif?culty in general education after above interventions, school personnel may refer the child for an evaluation for special education services. A parent may directly ask for an evaluation for special education services. A parent may begin this process of referral by indicating in writing to the teacher or administrator that he or she believes that the child is in need of special education services. During the initial referral process, notice of procedural safeguards should be given to the parent and receipt should be signed by parent. If a parent makes a referral for an evaluation and the school decides an evaluation is not needed, the school must give prior written notice to the parent of its refusal to evaluate. Evaluation Process 1) School must ask for consent from the parent to conduct evaluation. 2) IEP team reviews observations and additional data collected from teachers and parent. 3) Within 40 school days, necessary evaluations should be completed. 4) IEP initiation meeting must be conducted within 10 calendar days after evaluation in order to discuss child?s eligibility for special education and provision of appropriate instructional and/or related services. The meeting committee includes the following members: the parents of the child; not less than one regular education teacher of the child (if the child is, or may be, participating in the regular education environment); not less than one special education teacher of the child or when appropriate, not less than one special education provider of the child; a representative of the public agency (LEA) who: is quali?ed to provide or supervise the provision of specially designed instruction to meet the unique needs of children with disabilities; (ii) is knowledgeable about the general education curriculum; and Page 408 knowledgeable about the availability of resources of the public agency an individual who can interpret the instructional implications of evaluation results; at the discretion of the parent or the agency (LEA), other individuals who have knowledge or special expertise regarding the child, including related services personnel as appropriate; and whenever appropriate, the child with a disability. 5) Parental consent to initiate special education and related services must be separately obtained from the parent. If parent refuses consent, no special education and related services will be provided. IEP team collects the following data before evaluation: (see Appendix for attached forms) 1. Parent Consent for Evaluation Oral Language Rating Scale Behavior Rating Scale Vision and Hearing Screening Sociological Data Classroom Observation Form Classroom Based Assessment Referral Letter to the Parent (for initial evaluation only) Please see Appendix for summary of special education timeline. Instructional Arrangements for Memphis School of Excellence will place students identi?ed as limited English pro?cient (LEP) based on the results obtained through the screening instrument. The goal of English as a second language programs shall be to enable limited English pro?cient students to become competent in the comprehension. speaking. reading. and composition of the English language through the integrated use of second language methods. The English as a second language program shall emphasize the mastegg of English language skills. as well as mathematics, science and social studies, as integral parts of the academic goals for all students to enable limited English pro?cient students to participate equitablv in school. English as a second language program shall be integral parts of the total school program. Such proggam shall use instructional approaches desigped to meet the special needs of limited English pro?cient students. The plan complies with all federal and state regulations. The approaches to English Language Learner (ELL) programs are multifaceted due to diverse student populations and variant languages groups represented by those culturally diverse language groups. Often, the variety of programs, the de?nitions and the legal requirements for program 63 Page 409 implementation are confusing to educators. Services provided for second language learners should be addressed as an instructional continuum and delivery should be dependent on the students? needs and the program in which those needs are served. ELL, the primary program of second language instruction, focuses on assisting the student to learn content area subject matter. The following are descriptions of speci?c second language programs. ELL Program Models de?ne diversity and are dependent on state and federal laws. The students considered ELL in this scenario are those who are in transition from bilingual education to regular education classes. The sole use of ELL as an instructional medium is likely to be used in districts where language minority groups, are diverse and represent many different language groups. ELL programs can accommodate students from different backgrounds in the same classroom, and teachers do not need to be pro?cient in the student?s home language(s). Sheltered English is an approach to teaching content area subject matter through speci?c teaching techniques to homogeneous language leveled groups. Sheltered English teaching techniques facilitate the acquisition of the second language through content area curriculum. Teachers use challenging materials at appropriate reading levels, which help the student acquire the content, as well as vocabulary in the target language. The teacher uses clear concrete language with plenty of visuals, supporting clues, and relevant teaching strategies combined with appropriate manipulatives allowing the students to have real world experiences. Teachers control their speech speed and vocabulary and use few idiomatic expressions. ELL Class Period Students receive ELL instruction during a regular class period and also receive course credit for the class. Students may be grouped for instruction according to their second language pro?ciency level. ELL Resource Center is a variation of the pull out design bringing students from several classroom or schools to a central location. The resource center, which will be located in the campus, concentrates material and staff in one place and is generally staffed by at least one certi?ed teacher. A resource center can also provide services for recent arrival, such as general school and community orientation classes for students and parents. Page 410 Gifted and Talented (GT) program Memphis School of Excellence School will implement a Gifted and Talented (GT) program that meets the unique social, emotional, and intellectual needs of gifted and talented students through the collaboration of students, educators,lparents and community members that ensures opportunities for maximum growth and development for lifelong success. A GT student is de?ned as a child or a youth who performs at or shows the potential for performing at a remarkably high level of accomplishment when compared to others of the same age, experience, or environment and who: (1) exhibits high performance capability in an intellectual, creative, or artistic area; (2) possesses an unusual capacity for leadership; or (3) excels in a speci?c academic ?eld. Goals of GT Program: a) GT students will develop understanding of self and others, develop self-con?dence, and recognize the worth of others, b) GT students will utilize higher level thinking skills to foster creative results, which demonstrate an understanding of advanced content, c) GT students will have the opportunity to develop and maximize their cognitive and creative abilities to the fullest, within the framework of each task. Objectives: GT students will a) Develop critical thinking skills in order to solve problems logically, b) Develop research skills and use information gathered implementing a group research project, c) Demonstrate the ability to use creative problem solving strategies, (I) Recognize how change in and around their world affects their relationships. Program Services: Students in Program at Memphis School of Excellence will be offered the following services: Identi?ed students are provided with the options of taking GT courses where they have the opportunity to work with other GT students, non-identi?ed students, and to work independently. Differentiated, GT curriculum is taught in the academic core areas of Reading, Math, Science, Social Studies, and Computer Technologies. . Pull- Out Program Option is available in the academic core areas of Math, Science, and Computer Technologies. . A Gifted and Talented Mentorship Program. Identi?cation Process: Identi?cation of a GT student encompasses a three step procedure; 1) Nomination: students may be nominated by a) Parent, b) peers, 0) teachers, d) other professional personnel, and e) themselves. Page 411 2) Assessment/Testing: Students seeking admission to Program of Memphis School of Excellence take three tests (Ability, Achievement, Interviews). 3) Selection: The Committee convenes to make selection decisions. The decision is based on both Quantitative and Qualitative data. 4) Noti?cation: Parents are noti?ed in writing of the Campus Selection Committee's decision. Along with ITBS, the Cognitive Abilities Test assessment instruments will be used to identify gifted and talented students. The Cognitive Abilities Test appraises the level and pattern of cognitive development of students from 6 through 12 grades (the pertinent section will be used only). The test measures both general and speci?c reasoning abilities. The general reasoning abilities re?ect the overall ef?ciency of cognitive processes and strategies that enable individuals to learn new tasks and solve problems, especially in the absence of direct instruction. These abilities are assessed in three batteries: the Verbal, Quantitative, and Nonverbal batteries. Each is represented by two or three different reasoning tasks. Having multiple measures in each domain greatly increases the dependability of the score pro?le that is reported for each student. The Cognitive Abilities Test measures developed abilities, not innate abilities. As a part of qualitative assessment, teachers and/or parents will complete student observation forms. Memphis School of Excellence will offer a wide range of clubs and athletics activities. Additional programs and activities will be offered during and after school hours. Leadership activities such as Honor Society, Boy Scouts, Girl Scouts, 4H, and Student Council will be organized. Memphis School of Excellence is also planning to develop agreements with several charter schools to conduct joint hands-on science and mathematics education programs, joint arts exhibitions, and joint sports competitions at all grade level. Memphis School of Excellence will be in communication with Memphis City Police Department to provide a Drug Free America program at MSE. The of?cers of the police department will hold seminars and workshops to inform the students about the dangers of substance abuse. The following list of clubs that will be offered for Memphis School of Excellence students are: Computer Club: Students with an interest in computer technology will have the opportunity to learn new skills and practice those previously learned. Projects will be developed around areas that the club members suggest. Possible areas of exploration will Page 412 be Internet searching and Hyper Studio. The members of this club will introduce new developments in computer technology to other students. Math Club: Math Club is an alter-school activity which will use a variety of games designed to promote math skills and thinking strategies. Students with a high interest in math and related areas will learn to make better use of their skills. Peer tutorial and coaching will also occur among students who excel in math and those who struggle with the subject. Peer tutorial and coaching will take place between the upper grades. Science Club: Students with an interest in science will be given an opportunity to experience hands-on activities and experiments in the various areas of science. This club will organize small competitions and exhibits about science and increase the popularity of science in Memphis School of Excellence. This club will occupy the most impOrtant place in the co-curricular life at Memphis School of Excellence. Chess Club: The purpose of the chess club will be to give students the opportunity to practice the strategy of chess. Students will take turns pairing with other during each session. At the end of the year, there will be a contest to determine who the champion chess player is for that year. During the winter, there will be a district contest held at Memphis School of Excellence. Art Club: Students with an interest in art will have an opportunity to work with different ideas and materials not usually experienced in art class. Students need not be registered in an art class to join. Students will do fun art activities along with an emphasis on community service. Soccer Club: Open to any student who is interested in soccer. This club will support drug prevention programs by encouraging the students in sport activities. They will meet regularly to improve their soccer skills. Recreational Activities: Memphis School of Excellence will organize several teams sport, which includes but not limited to soccer, basketball, and volleyball. Page 413 Drama Club: Open to any student who wishes to develop acting skills. The group will meet regularly to listen to guest speakers on various aspects of acting as well as reading through plays and working on character development and stage presence. The Students will be able to express themselves in a variety of ways. They will build upon their existing ?air for the dramatics and have a lot of ?m in the process the culminating activity will be the performance of a short play chosen by the students. Family Consumer Science Club: Fun, ?'iends, food, crafts community service! Students will use their creative skills to make projects for themselves, families, and friends and/or to "serve" others in their community and school. Students will meet Fees will be charged for the cost of the materials for each project. Math Olympiad: There will be two-separated small math Olympiad inside the school; Math Counts (Grades 6-8), and Math Bowl (Grades 9-12) encourage students to develop an interest in and enthusiasm for math and problem solving, and contribute to intellectual development. They will provide opportunities for math enrichment, along with academic competition with students from other schools. Success?il students will be chosen by these small competitions to study and join other national and international Olympics. There will be special, chosen Olympiad teams, who will study with their guide math teacher for Olympics. Memphis School of Excellence will provide them with a suitable atmosphere to study well. Science Olympiad: Science Olympiad is another important goal in Memphis School of Excellence. It aims to join international science, biology and environmental Olympics. All science talented students will be encouraged to become involved in science Olympics. There will be science teams who will study for Olympics with a special guide teacher. Students will also compete with other public and private schools. Student Council: An organization of student representatives whose main purpose is to make students' interests known while providing opportunities for leadership and service within the school and community. Students will be elected from their Prime time to form a general body. The entire school will elect members of the Senate. Both groups will meet at regular periods. Middle School Student Government will develop leadership, serves as an Page 414 information conduit between students and teachers, and promotes social and service activities. Gifted Programming and Animation Club: Besides the regular computer class, this club aims students to gain the basic knowledge of "Visual Basic? programming language and Flash Program. Students will learn how to construct algorithms, digital graphics and animation, and write simple programs. They will receive hands-on experience with the various components associated with today's IBM compatible PCs. Electronics and Robotics Club: This club is designed to introduce students with the ?mdamentals of electronics and robotics. Main topics covered are analog and digital circuits, laws of electronics, and electricity as well as basic mathematical concepts af?liated with physics. They will perform experiments on circuits. Secondly, student teams will design and construct their own robots. Also, they?ll learn about the process as well as simple programming. Memphis School of Excellence plans to develop agreements with several charter schools to conduct joint advanced science and mathematics education programs, joint arts exhibitions, and joint sports programs. Memphis School of Excellence will develop plans with other public or private agencies to facilitate and enhance the enjoyment of student life. Academic assessment Academic assessment is an integral part of the curriculum at Memphis School of Excellence. Students will be tested periodically throughout the each school year to measure academic progress. Many types of assessments will take place in the classroom, both formal and informal. ITBS: The Memphis School of Excellence will meet all applicable state assessment requirements (Achievement Test in grades 6-8), the Writing Test, the Gateway Tests and the End of Course Tests) prescribed by law for all Tennessee public schools. In addition to the State assessment tests, students will be given the Iowa Test of Basic Skills (ITBS). The ITBS is administered to gauge the progress of students and to create a standardized basis for measuring schools? achievement and growth. This nationally norm-referenced test will be administered to all students during the fall semesters of the ?rst year to measure ?rst-year growth, and to establish a norm? referenced baseline. The results of these tests will be used to evaluate school programs and, in Page 415 conjunction with other assessments, classroom performance, student progress. Students will be divided into sections within each grade level according to the school-wide testing so that teachers can teach subject material to more homogeneous student cohorts. This ability grouping will enable teachers to provide effective classroom management practices. ITBS will be administered in core courses reading, mathematics, science, and language arts). The ITBS Will then be administered during the fall each of each subsequent year. The goal will be to increase same cohort performance on the ITBS by at least ?ve percentile ranks each year thereafter, or 25% over the life of the charter. This nationally recognized test when viewed with daily work performance, report cards, work portfolio, and attitude toward learning, give a balanced picture of each student's progress. The ITBS Form A and Form measures the skills and achievement of students form 6 through Grade 12 (the pertinent section will be used only). Developed at The University of Iowa and backed by a tradition of more than 70 years of educational research and test development experience, the ITBS provides an in?depth assessment of students? achievement of important educational objectives. Tests in Reading, Language Arts, Mathematics, Social Studies, Science, and Sources of Information yield reliable and comprehensive information both about the development of students? skills and about their ability to think critically. Benchmark Assessments: In addition to these assessments, locally prepared benchmark assessments will be given to the students at the end of each six-week grading period. The Benchmark Assessments have several important purposes. Their primary goal is to help teachers improve their classroom instruction by providing regular feedback regarding the students? knowledge of particular strands of instruction. Students? retention within a strand can be monitored and graphed to provide important information to teachers during their lesson planning. The benchmark system is based on assessments administered in writing, reading, and math in all grades. The Benchmarks allow the identi?cation of and weaknesses of individual students as they apply to the students? achievement of their educational goals and performance standards. The Benchmark Assessments are designed to support a comprehensive program of teaching and learning. The Benchmarks offer teachers the unique opportunity for a gauge of students' knowledge and national testing strands. These assessments take the form of short quizzes that mirror criterion-referenced and norm-referenced tests. This means, for example, that certain tests will require open-ended problem solving or persuasive writing along with traditional Page 416 multiple-choice questions. Teachers evaluate and score the work of their own students using common scoring guides, or rubrics. Teachers will use the results to adjust their instruction to meet individual student needs. The Benchmarks will be available online through an Intemet-based system. Memphis School of Excellence will report annually on all student achievement measures via quarterly School Report Cards. The connection among Tennessee Content Standards, TCAP, and classroom instruction will be aligned through out the school year. Upon completion of a subject unit, students will be given an assessment tool to measure mastery of those speci?c objectives that were thought. For majority of the courses, teachers will develop tests for periodic administration to give students opportunity to demonstrate their knowledge and understanding. Teachers will maintain a checklist of Tennessee Content Standards that will updated periodically on each students regarding mastery of speci?c objectives corresponding to Performance Indicator of the topic:. At the end of each school year, checklists will be compared to TCAP results to estimate effectiveness of classroom instruction. Objective of this comparison is to measure correlation between classroom instruction and Tennessee Content Standards,. High test scores will be an indication of an effective correlation between TCAP and classroom instruction. At the end of each school year, student test scores from state mandated (Achievement Test (grades 6-8), the Writing Test, the Gateway Tests and the End of Course Tests), locally adopted (IBTS), and other tests will be plotted over time to see improvement in students? achievement. This will enable teachers and administrators to identify the educational and needs of an individual?s students and extent to which educational goals and performance standards are being met. Those objectives that are not being mastered will be an indication of an area that needs for improvement in instructional techniques. Regular course grades will also be a program evaluation and effectiveness. Students who are failing in a particular subject area or course objectives will be tutored during after school hours or on the weekends until the subject is mastered. 7 Page 417 In 8th and 9th grade, MSE will administer EXPLORE and develop individual intervention plans for students who are not on track to be successful. In 10th grade, MSE will administer PLAN and develop individual intervention plans for students who are not on track to be successful. 10th grade students who could not met the college readiness standards 500; English PLAN: 15/ SAT: 500) must participate to this summer program. The aim of the summer program is not only to help students the remediate the academic benchmarks, but also guide them with the college application process. Finally, student surveys will be used to collect information and suggestion for improving classroom instruction, overall school environment, and educational program. End-of-course examinations will be given in English I, English II, English Algebra I, Geomem, Algebra II, US. Histom, Biology I, Chemism and Physics. The results of these examinations will be factored into the student?s grade at a percentage determined by the State Board of Education in accordance with T.C.A. ?49-1-302 (2). Students who are entering 9th grade in 2010 ,the yearly grade will be calculated by counting the teacher assigned grades for the course 80% and counting the end-of-course test grade 20%. Starting with freshmen in 2011 and thereafter end-of-course test grades will weight 25%. Higher Education Connections The connection between MSE and institutions of higher education listed below; 0 MSE will be a college-prep charter school. Every opportunity will be used to convey the message out to students and parents. In middle school and high school, students will take a Career Education class. The purpose of this course is to enable students to apply the knowledge and skills needed to design personal plans for achieving their goals in college and after college. The course attempts to give general information about career theories, opportunities, and instill in the student college awareness through preparing him/her for the senior year in high school. 0 During teacher in-services, college professors will be invited to train our teachers. They expose the faculty to original ideas and updates in 6-12 education. 0 Researchers and doctoral students at the University of Memphis and other local colleges will supervise our students on their science fair projects. Students will take trips to college campuses and use the library, computer center, and science labs. Page 418 With seminars, career fairs, individual and group counseling, students will demonstrate awareness of careers and terminology regarding colleges, ?nancial aid, etc. and become familiar with application and ?nancial aid forms. The high academic and behavior expectations, challenging promotion standards, and graduation plans the students are required to follow create a college culture. All students will be expected to graduate on regular or scholar diploma. Students are awarded for their accomplishments, highly regarded for being in honor roll, and encouraged to participate in academic competitions. Students will have an opportunity take AP classes starting in 9th grade. Some of the AP classes that will be offered are AP Spanish, AP Calculus AB, AP Calculus BC, AP Statistics, AP World History, AP Human Geography, AP US History, AP Biology, AP Chemistry, AP Physics, AP English Language, AP English Literature, AP Computer Science A, and AP Environmental Science. Students will be able to take dual credit courses at local community colleges or 4-year colleges. The class load of a high school student will not exceed two dual credit courses per semester (fall, spring, and summer). However, under special circumstances that indicate a student with exceptional academic abilities is capable of additional college-level work, the academic dean may grant exceptions to this requirement. There is no limit on the hours of college credits a student will earn. Some students may earn up to 36 hours of college credit with a combination of AP, dual credit, and tech prep courses. Every student will be required to present a major research project in their high school years. The project will be in one of the following areas; Mathematics, Computer Science, Physics, Biology, Chemistry, Biochemistry, Botany, Zoology, Engineering, Environmental Science, Earth Science, or Behavioral Sciences including Statistics, and Education. Students will be expected to set up an experimental design, follow scienti?c research guidelines and use technology to create their product. The product could be a PowerPoint presentation, a video, or an animation that explains the student?s work. During the defense of the project, 2 judges will ask questions and score the presentation. Members of the judging committee will be professors, doctoral students, engineers, doctors, researchers, technology specialists, and teachers at other high schools. Page 419 Award Program The student recognition program is a very important aspect of school life. Students in all grades are recognized at the end of each grading period for accomplishments in attendance, academics, and responsibility. The awards are presented in each homeroom class at the end of each semester. At the end of the school year, school also holds annual Awards Day ceremonies with recognition for year-long accomplishments. Other types of awards are rewarded for each subject due to the teachers? policies. These might be homework pass, candy, gift card, coupon, trophy, medal etc. However, attendance, academics and responsibility are important components for at?risk students and they are awarded based on the following criteria: Attendance: School targets to reach the maximum attendance limits. In order to promote the importance of attendance, students who attended over 95% of the semester period will be awarded. Students with 100% attendance rate will receive special awards. This award will help the school improve the level of attendance. Academics: Students who get all A?s in courses will be awarded with special awards in each semester. Students with As and Bs will be awarded as well as students with all Bs. This will help students gain encouragement and appreciation in their education. Responsibility: Students accomplished exemplary course projects in science, math, reading etc. will be awarded to special awards at the end of each semesters. The name of the awards will be designed by the school principal?s proposal to governing board. The award decision apprOved by the board will be presented to students of each grade level. Parent Visitations by Homeroom Teachers Communication is absolutely essential for success in any human endeavor. The administrators and staff will recognize this and will strive to facilitate open and frequent communications with parents at all times. In addition to the report cards and conferences, student work will be sent home along with a progress report from student's teacher in a communication folder. The parent/ guardian will be asked to sign and return the information the following day. This information will be sent home weekly. It is imperative that parents speak with the child?s teacher ?rst for classroom issues. It is the desire of the administrators and the faculty to be of service to both parent and student, and every teacher Page 4204 welcomes a conference with any parent. At no time is it appropriate for a teacher to meet with parents while students are present, including the arrival time of the student. Therefore, conferences need to be scheduled ahead of time, so the teacher and/or administrator will be available to meet with the parents. Parents are welcome to visit and observe our classes. However, for sound educational planning, school requests that a visitation appointment be made by calling the school office at least one day prior to the planned visit. Weekly newsletters and/or notices will be sent home with students to be signed by parents. Same notices will be published at school?s web site. It is the parents? responsibility to stay informed. If parents don?t have access to the intemet, a copy of the same information will be made available at the school?s lobby. School visitors, including parents are not permitted to go to their child's classroom unannounced during school hours because this disrupts normal routine and instruction. For the safety and protection of all students, visitors (including parents) must present a valid Tennessee Drivers License which will be processed through the front desk service. Parents must also sign-in and -out, state why they are visiting, and what the purposes of the visit are, and obtain a pass before proceeding to a classroom. Cooperation will enable the school to provide a safe and orderly learning environment for all students. In order to solidify the communication among parents, student and teacher, homeroom teachers will schedule a home visit to student?s parent/guardian at least once a semester. Teacher will give a little brie?ng about the school, students? classroom and student?s performance in classroom. If there is any speci?c question raised by the parent/guardian teacher will try to answer or invite them to school further follow-up. Student?s performance in all curricular areas, school activities and attendance and academic progress will be discussed with the parent. Feedback about student, teachers and school received from the parent will be reported to school?s principal for the success of student and continues improvement of the school. Student Support and Guidance Program (MSE-SSGP) Model MSE-SSGP is an in-school academic and social support program for grades 6-12 grades designed to continually assess students? engagement through close monitoring of students? performance and Page 421 progress indicators including attendance, behavioral incidents, course grades, state and standardized test results, and earned credits. Students at all levels are assisted by staff to solve problems that can potentially interfere with their doing well in school. The program focuses on drop-out prevention that provides academic assistance, guidance, counseling, and community outreach services to at-risk children. The program provides support services for students that enable them to appreciate leaming, stay in school, and improve their academic performance. MSE-SSGP is composed of two stages, diagnostic intervention. The purpose of diagnostic is to systematically assess the extent to which students are engaged in school or, conversely, are exhibiting signs of school withdrawal as well as the intervention stage is to respond on a regular basis to students? educational needs according to their type and level of risk for disengagement from school. MSE-SSGP involves school faculty and staff member who will be providing individualized attention to students in partnership with families and the community. MSE-SSGP is implemented under the supervision of School SSGP Coordinator designated by the school principal. The structure of the program is as follows. SSGP-MS Coordinator (MS Counselor) ., . 'm xr when.? SSGP-HS Coordinator (HS Counselor) Parent Participation Program Parental involvement is recognized as a crucial factor in school success. MSE will be most appropriate for parental involvement due to its educational program and small size, and individual attention. Each classroom and homeroom teacher will mentor a number of students, monitor their Page 4Z26 progress in each subject matter, and contact their parents regularly. This will be a unique way of increasing parental awareness and involvement with school activities and their children?s education. To establish more organized parental involvement and help parents enhance their children?s learning at home, MSE will initiate Parent Participation Program which is composed of series of parent seminars. Parents Seminars will be organized to assist parents in understanding, living with, and educating their children. Through parent seminars, parents will be educated on: Increasing understanding of parents to become a more supportive, encouraging and effective parent Increasing awareness to speci?c factors affecting their school experience; How to monitor academic progress, attitude, and social adjustment, and provide opportunities for teachers to outline for parents appropriate learning strategies to be implemented at home to reinforce classroom learning. How to spare time each evening to monitor homework and to provide assistance and encouragement to their child as needed, and as directed by the classroom teacher. Encouragement, support, and strategies to be implemented at home to enhance their child's prospects for academic progress. Setting high expectations and motivation strategies. In addition to parent seminars, parents will be recommended to do followings for an active involvement in their child?s education. Ask parents to read to their children regularly or listen to the children read aloud. Lend books, workbooks, and other materials to parents. Ask parents to take their children to the public library. (Provide the necessary information about how to get there, how to get a library card, and so forth needed.) Ask parents to get their children to describe (in detail, daily) what they did in school. Give an assignment that requires children to ask their parents questions. Ask parents to watch a speci?c television program with their children and discuss it afterward. Suggest ways for parents to include their children in any of their own educationally enriching activities. Suggest games or group activities related to the children?s schoolwork that can be played by either parent or child or by child and siblings. Suggest how parents can use home materials and activities to stimulate their children?s interest in reading, math and other subjects. Establish a formal agreement whereby parents supervise and assist children in completing homework tasks. Establish a formal agreement by which parents provide rewards or penalties (or both) based on children?s school performance and behavior. Give a questionnaire to parents, so that they can provide feedback about their children?s progress. Explain certain techniques for teaching, making learning materials, or correcting mistakes appropriately. Page 423 0 Ask parents to sign homework to ensure its completion. 0 Ask parents to provide spelling practice, math drills, or other practice. To avoid assignments being used as useless attachments to current duties, faculty will be assigned to work closely with parents using one-on-one settings and group activities. Working with parents in this way will be the responsibility of each faculty member. The School SSGP Coordinator will supervise these activities. The following actions will be taken to improve the effective communication and partnerships with parents: 0 Publish a clear policy welcoming parental involvement, publicize it, and post it in the school buildings in an obvious place for all to see. 0 Home visit by teachers will be a great tool for parents? education and building strong relation between student and teacher. 0 Organize the staff, so that at least one person knows each student well- how he or she is doing in all subjects; whether he or she is making friends; whether he or she is anxious, afraid of failing, and so forth. 0 Make sure that the school of?ce is friendly and open and that parents are treated with respect and are not kept waiting. 0 School?s web page will be used effectively for constant communication. Parents will be able to have access to daily homework assignments, grades, attendance via school?s secure web page. 0 School will assign individual email account to its parents who need it. Sponsor parent-to-parent events, so that parents can get to know one another and develop common standards for their children?s behavior and social life. 0 Set up a parent room in the school building. Equip it with comfortable places to sit, a telephone, books about school age-children and what they need, and access to a copying machine. 0 Provide in-person contact with parents whose primary language is not English, and be sure that translators are involved in all parent-teacher interaction as needed. At MSE, we believe that involving more parents more often and more productively requires changing the major location of parent involvement from the school to the home, changing the major emphasis from general policies to speci?c skills, and changing the major target from the general population of students or school staff to the individual child at home as speci?ed above. Memphis School of Excellence will provide a real choice among education opportunities for students, parents, and teachers. The availability of choice is an important element in educational accountability that promotes higher standards throughout the system. The accountability that choice encourages will also help maintain strong public support for public education as a whole. Page 4Z48 By meeting its objectives, Memphis School of Excellence will provide children with a positive educational and social experience in a structured, challenging, yet nurturing environment. It will be a community in which students, teachers, and parents are jointly aware of and committed to the mission and goals of the school. After School Program (MSE-ASP) Memphis School of Excellence will offer a quality after school program to its students, which will yield positive effect on academic success and social behavior of students. The goal of the program is to create a safe haven for students, keep students out of trouble/reducing risk behaviors, and improve academic performance by providing academic support, enriching experiences, social, cultural, and recreational activities. The MSE-ASP will help participating students improve their scores in core subjects, in large because students will be able to focus their attention on areas where they have weaknesses. The MSE-ASP will also contribute to raising self-con?dence of participating students, and help them develop better social skills and learn how to handle con?icts in more socially acceptable ways. The MSE-ASP will contribute to improving school attendance, increasing engagement in school, and reducing the dropout rate because, based on a research, students who spent even one to four hours a week in extracurricular activities were 60% less likely to have dropped out of school by 12"1 grade than their peers who did not participate. Memphis School of Excellence will seek to increase community and parent involvement to improve the availability of the after-school program. Partnerships among schools, local governments, youth- and community-based organizations, social and health services, and businesses will result in a high-quality after school program at MSE. The MSE-ASP will have four components as follows: 1. Academic o??erings: Academic activities will include enrichment activities that are linked to the curriculum and that are provided by school teachers as course/homework assistance and tutoring in core subjects. 0 MSE Tutorial Program Saturday Attendance Program 2. Enrichment and accelerated learning: Student will be exposed to visual and performing arts, character education, critical thinking skills, foreign languages, and technology. Examples include web-design club, ?ash club, and preparation for academic teams to Page 425 participate in local, statewide, national and international competitions such as Math Counts, American Mathematics Contest (AMC), International Science Olympiads, Science Fair, Geography Bee, Spelling Bee, Book club, creative writing, Digital Club- digital photography, digital video, and digital communication. 3. Supervised recreation: Organized sports and sports education such as basketball club, and soccer club, dance club, rock band, and role playing. 4. Community service: Some projects and activities associated with service-learning program will be carried out after school. The MSE-ASP will re?ect different types of learning and balance the three: 1. Extended learning from activities that are aligned to the regular school day, such as homework help and tutorial; 2. Enriched learning that is project-based, more hands?on and experiential than regular classroom, such as service-learning, and will be aligned with school curricula; 3. Intentional learning, which includes all nonacademic activities that foster social and other nonacademic types of skills, like through sports. The School SSGP Coordinator will ensure that the after-school program provides high quality services that meet the needs of program staff, students and families. MSE will utilize its partnerships with schools, local governments, youth- and community-based organizations, social and health services, and businesses to ?nd skilled and quali?ed volunteers that are experienced in working with school-age children, and provide professional development for staff to sustain a quality program. The School SSGP Coordinator will also design effective evaluations in ways that incorporate multiple measures of success that re?ect program goals. Continuous monitoring and shared understanding of program goals will help staff maintain their focus, improve effectiveness and accountability, ensure parent and participant satisfaction, and identify necessary changes. Tutorial Program Memphis School of Excellence will implement a tutorial program, called MSE Tutorial Program, to its students who have demonstrated a need for extra help to pass state tests and courses in English/Language Arts, Math, and Science in all grade levels. The main goal of the program is the academic improvement that will yield positive outcomes in reducing dropout rates. Tutorial will be offered to students both afterschool and Saturdays. Students who identified for placement in afterschool tutorial will be required to attend; where Saturday Tutorial is invitational- Page 426 based. MSE Tutorial program will be offered free of charge to students to increase students attendance. MSE Tutorial Program aims to achieve the followings. Increases students? mastery of academic skills 0 Improves students? self-esteem and self-con?dence Improves students? attitudes toward school: reduces dropout rates, truancies, and tardiness 0 Help students break down social barriers and creates new friendships Students enrolled for the tutorial program will receive; 0 Individual instruction?lessons are tailored to individual students? learning styles and levels of understanding Instruction free of competition?students progress at their own pace Private instruction, apart from whole class instruction Increased praise, feedback, and encouragement over what they might receive from one teacher 0 Closer monitoring (from the teacher and tutor) that maximizes time on task 0 Skills demonstrated instead of just verbalized School, students, families, and community dynamics will all contribute to the success of the program. The program will be facilitated by the School SSGP Coordinator and mainly carried out by school staff members, but not limited to, and involve parents and community members that will deliver after-school instruction to students in case of lack of teachers who will be offering tutorials. All local resources including community colleges, universities and learning centers will be utilized to ?nd and recruit volunteer tutors. The School SSGP Coordinator willrecruit volunteer tutors, giving the priority to the candidates who are competent in the subject they will be tutorial and demonstrate willingness, patience, dedication, assertiveness, and the ability to lead and instruct. All personnel who will be offering tutorials, including school teachers and tutors from outside recourses, will be provided with training by the School SSGP Coordinator. The training sessions will include the following steps; Tutors will be given an overview of the program structure, procedures, and goals. Familiarize the tutorial personnel with the curriculum. Assess tutors? skills and comprehension before assigning them to students to ensure that tutors have mastered the material enough to effectively teach it. 0 Give tutors background information about their tutees in a way that students? privacy is protected, by not disclosing unnecessary personal information. 0 Model instructional techniques you would like tutors to implement, emphasizing interpersonal, management, and content skills. Page 4?7 0 Teach tutors to recognize the appropriate time to demonstrate skills to tutees, and the right time to provide tutees with feedback Ensure tutors are able to recognize areas where their tutees need extra help. Ensure tutors are trained in a speci?c error correction procedure. It should be quick, simple, consistently applied, and non-stress?rl for both tutor and tutee. 0 Train tutors to keep accurate records, as this is used in the assessment of the tutee and the evaluation of the program overall. 0 Provide tutors with ongoing monitoring and supervision throughout the course of their Tutorial experience. 0 Make sure tutors know who to talk to when they have any questions or concerns. Saturday Attendance Program (SAP) 7 Reducing drop-out rates and increasing student attendance among at?risk students in 6 thru 12 educations are very important and successful programs emphasize creating meaningful bonds between students and teachers, connecting students to an attainable future, giving students opportunities to work while in school, providing academic assistance, and giving students some roles in the school. Memphis School of Excellence will implement the successful best practices of SAP program. The SAP will be a free program which gives students increased academic support. MSE teachers and principal may refer students to the Saturday School for minor disciplinary reasons, for example: tardiness, truancy, coming to class without the necessary materials, weak scores, and failing to participate in instructional activities. Parents may also bring their children for homework assistance. Participation in the Saturday School Program is not mandatory. But, students might receive bonus. The goals of the program: 0 To increase academic achievement 0 To provide homework assistance - To improve attendance To provide parent involvement - To provide test, homework, and TCAP support All student participants will be expected to bring the necessary study materials, such as paper, pencils, or pens, textbooks, etc. Students must be able to tell the teachers and tutors what assignments they will work on while at the Saturday School Program. Transportation is not provided by the school since student participation in this program is voluntary. Parents must provide transportation to and from the school. All students will be Page 428 allowed to enter the building at 8 am. and must clear the building by 12:00 pm. All students and parents must be picked up on time. Failure to pick up students on time may result in exclusion from future participation. SAP Rules are given below: 0 Student participants must bring their referrals or be accompanied by parents with valid identi?cation. All students must sign in upon arrival to receive credit for attendance. Students are allowed to talk only to the teacher, tutor, or monitor while in class. Normal school rules will apply. All provisions of the Student Code of Conduct are applicable in the SAP. 0 Student participants may not bring their children, siblings, relatives, friends, or pets to the program. - Loitering in the halls and/or restrooms will not be permitted. 0 When students complete their assignments or study periods, they must leave the building after signing out. Middle School Counseling Program Middle school is an exciting, yet challenging time for students, their parents and teachers. During this passage from childhood to adolescence, middle school students are characterized by a need to explore a variety of interests, connecting their learning in the classroom to its practical application in life and work; high levels of activity coupled with frequent fatigue due to rapid growth; a search for their own unique identity as they begin turning more frequently to peers rather than parents for ideas and af?rmation; extreme sensitivity to the comments from others; and heavy reliance on friends to provide comfort, understanding and approval The middle school counselor will serve as SSGP-MS Coordinator, and provide proactive leadership that engages all stakeholders in the delivery of programs and services to help students achieve success in school. Middle school counselor will implement the counseling program by providing: 1. School Guidance Curriculum a. Academic skills support b. Organizational, study and test-taking skills c. Education in understanding self and others (1. Coping strategies e. Peer relationships and effective social skills f. Communication, problem-solving, decision-making and con?ict resolution g. Career awareness, exploration and planning h. Substance abuse education Page 4289 i. Multicultural/diversity awareness 2. Individual Student Planning a. Goal-setting/decision? making b. Academic planning c. Career planning (1. Education in understanding of self, including and weaknesses 6. Transition planning 3. Responsive Services a. Individual and small group counseling b. Individual/family/school crisis intervention c. Peer facilitation d. Consultation/collaboration e. Referrals Middle school counselor will collaborate with the homeroom teachers in: a. Career portfolio development b. Assistance with students? academic plans c. Classroom guidance activities on study skills, career development, etc. d. Academic support and learning style assessment e. Classroom career speakers f. Interventions for at-risk students to enhance success g. Parent communication/education Middle school counselor will play an important role in planning, developing and organizing parent information nights, academic planning programs, parent and family education, one?on-one parent conferencing, assessment results interpretation, resource referrals, and college/career exploration. Why Counseling in Middle School Middle school students are characterized by rapid physical growth, curiosity about their world and an emerging self-identity. Through MSB-MS Counseling Program, middle school counselor work as a team member with school staff, parents and the community to create a caring, supportive climate and atmosphere whereby young adolescents can achieve academic success. Middle school counselor will enhance the learning process and promote academic achievement. The MSE-MS Counseling Program will help students to achieve optimal personal growth, acquire positive social skills and values, set appropriate career goals and realize full academic potential to become productive, contributing members of the world community. The counselor will participate in on- going professional development to stay current with education reform and challenges facing today?s students. Page 430 MSE-HS Counseling Program High school is the ?nal transition into adulthood and the world of work as students begin separating from parents and exploring and de?ning their independence. Students are deciding who they are, what they do well, and what they will do when they graduate. During these adolescent years, students are evaluating their skills and abilities. The biggest in?uence is their peer group. They are searching for a place to belong and rely on peer acceptance and feedback. They face increased pressures regarding risk behaviors involving sex, alcohol and drugs while exploring the boundaries of more acceptable behavior and mature, meaning?Jl relationships. They need guidance in making concrete and compounded decisions. They must deal with academic pressures as they face high-stakes testing, the challenges of college admissions, the scholarship and ?nancial aid application process and entrance into a competitive job market. Secondary School Counselors Implement the Counseling Program by Providing: 1) Classroom Guidance a) Academic skills support b) Organizational, study and test-taking skills c) Post-secondary planning and application process (1) Career planning 6) Education in understanding self and others i) Coping strategies g) Peer relationships and effective social skills h) Communication, problem-solving, decision-making, con?ict resolution and study skills i) Career awareness and the world of work j) Substance abuse education k) Multicultural/diversity awareness 2. Individual Student Planning a) Goal Setting b) Academic Plans c) Problem Solving d) Education in understanding of self, including and weaknesses e) Career plans t) Transition plans High school counselor will also any out responsive services such as Individual and small-group counseling, individual/family/school crisis intervention, peer facilitation, consultation, collaboration, and referrals. High school counselor will be in cooperation with teachers to provide the following services; 1) Portfolio development, providing recommendations, and assisting students with the post- secondary application process 2) Classroom guidance lessons on post-secondary planning, study skills, career development, etc. 3) School-to-work transition programs Page 431 4) Academic support, learning style assessment and education to help students succeed academically 5) Classroom speakers 6) Implementation of interventions to enhance students? success Why Counseling in High School High school years are full of growth, promise, excitement, frustration, disappointment and hope. It is the time when students begin to discover what the future holds for them. High school counselors enhance the learning process and promote academic achievement. MSE-HS Counseling Program will help students to achieve optimal personal growth, acquire positive social skills and values, set appropriate career goals and realize full academic potential to become productive, contributing members of the world community. The counselor will attend on-going professional development to stay current with educational reform and challenges facing today?s students. Professional Development MSE Counselors and SSGP Coordinators will attend professional development to enhance students? education, and to stay current with educational reform and challenges facing today?s students. Professional development will include but not limited to national conferences, state conferences, and site-based trainings provided by American School Counselor Association, The Tennessee School Counselor Association. Student Goals Memphis School of Excellence is committed to creating a safe, enriched and challenging educational environment, which supports and promotes the intellectual, social, emotional and physical and development of each child. Staff, students and parents will work together, and share the responsibility of creating an optimum educational environment that responds to student and community needs. At Memphis School of Excellence students? unique abilities and talents will be valued and nurtured. In addition to the indicators set by the state accountability rating system, Memphis School of Excellence expects its students to achieve the goals given in the tables below. Individual student progress shall be monitored by the classroom teacher, the principal of MSE, and the students. The school shall demonstrate student improvement on standardized tests and compare favorably with Page 432 schools having similar student populations. The following tables indicate the student goals and strategies and describe how the progress will be measured relative to each student goal. GOAL-1: READING Student Goals: Student pro?ciency and achievement in reading will grow academically. 85% of students will increase their CAP reading scores or national percentile in below mentioned standardized tests a?er two years ofenrollment in MS E. Strategies 1- At the beginning ofthe school year, students will be given standard tests STAR Reading test, STAR Early Literacy Test, and These data will help teachers and administrators to adjust the instructional level, and arrange appropriate supportive programs for students at risk. Performance Measure/Structure Based on the data gathered from the tests given at the beginning, each student's individual Reading Achievement Goals will be determined by a group oftrained ELA teachers. These tests will be given throughout the year to monitor the progress. Each individual student?s growth will be carefully watched. At risk students will be easily detected and provided extra help (after school tutorials, Saturday programs) in order to catch up their peers. Assessment Tools Progress Results ITBS. STAR Reading test, STAR Early Literacy Test, School assessments, TCAP. 2-Teachers will develop individual instructional plans for all students who require remediation or enrichment. Students who need individual instructional plans will be identi?ed with STAR Reading and STAR Early Literacy tests. STAR Reading and STAR Early Literacy tests will be given every month throughout the year to see iithese students are responding to their individual instructional plans. NWEA Assessment, STAR Reading test, STAR Early Literacy Test. 3-Teachers will instruct all students at instructional reading levels. STAR Reading test results indicate each student instructional reading levels. From time to time, students at the same instructional level can be taught in small group settings. Dean of academics and ELA department chair will make regular weekly class walk?ins to observe ELA teachers. ELA department chair should also make sure that all ELA teachers have access to test results and know how to form and instruct students in small groups. 4? Accelerated Reader: AR (Renaissance Learning) program will be implemented in school's reading curriculum in order to get students excited about Students, parents, teachers, and administrators will have access to HomeConnect website where everybody can monitor student's reading progress online. ELA teachers will set individual goals for each student (initially based on STAR Reading Test results). School administrators and department chairs will monitor the success ofthe program. Page 433 reading. 5- Students will have at least 30 min daily independent reading time during school hours. Each student will have individual achievement goals. The progress of students will be monitored and encouraged closely by school administrators and ELA teachers. Classroom logs of family/at home reading time will be used along with AR test results. 6-Expose all students to a wide variety of literary genres. Book drives, and fund raising programs will be organized to enhance the school library. First year, the goal is to have minimum 3000 books in the school library. 7-Specially trained teachers will employ strategies in reading to meet the needs of individual learners. ELA Department Chair and the school administrators will plan each teacher's personal development based on class observations and students test results. Teachers will be required to participate 60 hours of professional development every year. School administrators will keep track of each teacher?s professional development program and consult with department chairs on the effectiveness of the program. 9-Family at home reading will be encouraged. Parents will be invited to school for informative meetings. Parents will be informed on STAR Reading, STAR Early Literacy, Accelerated Reader, HomeConnect (website where parents can have access to their kid's test results), AR Book Find (website where parents find appropriate books for their kids). Parents will be encouraged to meet with their kids ELA teachers to discuss test results. Parents will also be informed on how to establish a good reading environment at home. Teachers will be required to keep track of parent meetings. During weekly department meetings. Teachers will be asked if they have contacted with the parents of struggling students. school-wide celebration of reading will occur. A good school-wide reading incentive program is essential. Principal and PTO will raise money to have good sustainable incentive program that will last for the entire year. After every grading period, students who reached their individual goals will be recognized. Page 434 WRITING Student Goals: Student pro?ciency and achievement in written language will improve. 85% of students will increase their CAP writing scores after two years ofenrallmenr in MSE. Strategies Performance Measure Assessment Tools Progress l?Complete Test item analysis to determine program and areas of concern. Based on the data gathered from both test (State and Benchmark Tests) the writing curriculum Results TCAP Writing assesment School assessments, School wide Mock Tests school. writing improvement plans will be assignments. determined by a group ot?trained ELA teachers. 2?Students will practice writing Maintain student?writing Portfolios. daily. portfolios. 3-Special trained teachers will employ differentiation strategies in writing across all curriculum areas to meet the needs ofindividual learners, including Special Education, and Dyslexic. Essays, exams, portfolios, exhibitions, and oral examinations. Differentiating the education is a key to succeed. In order to check if each student reaches his/her potential, ELA teachers and dean of academics will meet regularly to go over each student's progress. 4-Teachers will demonstrate and model examples of good writing across grade levels. S-Teachers will use targeted writing skills across grade levels. Varied writing assignments, portfolios, exhibition. and standardized tests Varied writing assignments, portfolios, exhibition. and standardized tests 6- Writing will be integrated into other curricular areas. ELA teachers will work with Science and social studies teachers on certain assignments such as Science Fair Projects, Research Paper assignments, power point presentations of certain topics. Dean of academics and department chairs of ELA, science, and social studies will plan this collaboration and work on the implementation throughout the year. Every semester the activities will be reported to principal. At the end ofthe ?rst year, based on the experiences of the ?rst year, a new plan will be deveIOped. 89 Page 435 GOAL-3: MATHEMATICS Student Goals: Students will demonstrate pro?ciency in Math. 85% ofstudents will increase their CAP mathematics scores or national percentile in below mentioned standardized tests after two years of enrollment in MSE. Strategies Performance Measure Assessment Tools Progress Results 1- At the beginning ofthe school year, students will take standardized tests (ITBS and STAR Mathematics Test). Test data will help teachers and administrators to adjust the instructional level, and arrange appropriate supportive programs for students at risk. Star Math tests will be given throughout the year to monitor the progress. Each individual student?s growth will be carefully watched. At risk students will be easily detected and provided extra help (after school tutorials, Saturday programs) in order to catch up their peers. The results of ?rst year results of various tests (TCAP, School assessments, School wide Mock Tests school, End of Course Algebra] . Geometry, Algebra 2, Matheounts, AMC, STAR Math) results will be used as baseline data to determine an improvement plan for each grade level for the following years. 2?Every grade level will increase the use of math manipulative. Teachers will be trained on how to use math manipulative. Math department chair will monitor the usage ofmath manipulative. 3-Students will complete daily problem solving activities in the grade levels. Performance on daily practice activities. Accelerated Math Program will be used daily to monitor students? progress. By using the online reporting features of Accelerated Reader, administrators and department chairs will monitor grade level progress. 3-Specially trained teachers will employ strategies in math to meet the needs ofindividual learners, including BE, Off, and Special Education. Essays, exams, standardized tests, portfolios, exhibitions, lab practical and oral examinations. Different libraries of Accelerated Math will be used to address the needs of different groups of students, such as special education, etc. Differentiating the education is a key to succeed. In order to check if each student reaches his/her potential, math department chair and dean of academics will meet regularly to go over each student's progress monitoring report. This feature ofAcceIerated Math will give clear picture if each student is challenged according to his/her capacity, or not. 5-Develop site?based pre and posttests for math skills at each grade level. Accelerated math provides great tools to give pre and post tests (diagnostic tests and regular tests). This way instruction can focus on the concepts that are missed by the majority of the students. Others can be delivered in small group instructions while other students are working on their practice problems. Accelerated Math enables school administrators, parents. and students to reach learned objectives data withjust a few clicks. This way, anybody within the system can see the progress, or identify any problem. 90 Page 436 6?Start a Math Olympics team after school program. GT students will have a good opportunity to get in?depth math instructions during after school math Olympiad classes. Math department chair will try to communicate with neighborhood schools to have small mathcounts competitions among these schools before participating regional ones. GOAL-4: SCIENCE Student Goals: Students will demonstrate pro?ciency in science. 8500 of students will increase their TCAP science scores or national percentile in national standardized tests a?er two years of enrollment in MSE. Strategies l-Teachers will increase the number of hands?on activities and investigate labs at every grade level. Performance Measure Teachers will keep a copy of graded lab reports and activity hand-outs in their portfolios as a proof of students? work. They will share their experiences with other science teachers during weekly department meetings. Progress Results Science department chair and dean of academics will check the teacher portfolios at the end of each grading period. Teachers will be encouraged to increase the number ofhands-on activities. 2-lmplement technological applications as appropriate. Vernier (electronic measuring interfaces/sensors) Elementary Science Lab program will be used along with traditional methods. Teachers will keep a copy of graded lab reports and activity hand-outs in their portfolios as a proof of students' work. They will share their experiences with other science teachers during weekly department meetings. Science department chair and dean of academics will evaluate the portfolios and talk with the teachers to determine if professional developments are needed to implement more technological applications. 3?Teachers will implement activities and provide resources to meet the individual needs of all students, including LEP, and Special Education. Cooperative learning techniques will be used to address the needs of different individuals. Each student in a team will have certain responsibilities and the roles will be switched after each activity. including LEP, and Special Education. During weekly department meetings, science teachers will share their experiences and get feedbacks from department chair. New cooperative learning techniques will be introduced by the department chair throughout the year. 4-Staff will continue to develop technical skills through in- service, training. classes, and mentors. Continuous training is essential part of implementing the science program. Principal and dean ofacademics will monitor the progress ofstaff and make some changes/innprovements on the development plan as needed. 91 Page 437 5- Students will utilize Science teachers will work with Dean of academics and department classroom, lab, and library ELA teachers and social studies chairs of ELA, science, and social technology as appropriate to the teachers on certain assignments studies will plan this collaboration learning activities. such as Science Fair Projects, and work on the implementation Research Paper assignments, power throughout the year. Every point presentations of certain semester the activities will be historical achievements in history of reported to principal. At the end of science. the ?rst year, based on the experiences of the first year, a new plan will be developed. GOAL-5: TECHNOLOGY Student Goals: Students will use technology as an integrated tool in learning and teaching Performance Progress Results Strategies Mensure/Structm?e 1- Students will utilize Check list of classroom software First year of school operation, dean classroom, lab, and library use. of academics will make sure that technology as appropriate to the Pre/Post keyboarding assessment department chairs will discuss and learning activities. in grades 6. Teachers will work work on digital portfolio project on a platform that will hold throughout the year. Second year digital portfolio of students. The teachers will star to use the system rubrics and details will be for their work, and third year, 6th discussed with other department graders will start to use a simple chairs as well. system that was developed by the school to post their projects. 2~ Starting in grade 6 all students Portfolio, Presentation will present a project/topic to their class by use of PowerPoint type presentation at least in one subject. 3- Starting in grade 8, all students will be competent the set of technical and computer skills identi?ed below: -able to prepare documents in all Office type programs (Word processor, Excel spreadsheet, PowerPoint multi medium slide show or Publisher advanced text compositions). -able to prepare a webpage of their own design. -able to set up a multimedia projector with PC and operate it. 92 Page 438 4- Staff will continue to develop technical skills through in- service, training, classes, and mentors. 5- Staff will utilize school technology. 6- Staff will investigate to inform and facilitate discussion surrounding the issue of computer lab vs. classroom technology. Classroom documentation of usage. At the beginning of the school year, one full day and two half days will be spent on training of staff on database, technology and so?ware that school will utilize. Training of staff will continue through?ut the year. Principal will meet with technology specialist once a month and based on the feedbacks and observations made during staff meetings, class visits and walk-ins, new trainings will be planned as needed. 7- Purchase and utilize needed software, hardware, and technology tools. As need arises, new software, hardware, and technology tools might be purchased. This will bring a new cycle of training and implementation and integration cycle. Principal along with other staff members, will evaluate the effectiveness of the purchased programs and technology tools, and then decide if they will be used for another year. If yes, they will discuss how to improve implementation and integration of the technology product to school environment. 8- Support and encourage a?er school parent and student computer use. 9- Assign a staff member/parent volunteer to monitor the computer lab. Computer lab(s) will be used in the most effective way. To do this, a lab will be accessible before school, during lunch, and a?er school to both students and parents. During normal school day, teachers will have access to computer lab(s) at least once every other week for each of their classes. This way, if they need to use the computer lab to use either intemet or other programs, they can go, if not stay in their classrooms. After the second grading period, dean of academics will prepare a report on the usage of computer lab(s) and multimedia room. During staff meeting, principal and teachers will discuss to ?nd more efficient/effective use of these rooms. GOAL-6: CITIZENSHIP Student Goals: The school will provide an exemplary academic program while instilling strong character education built upon respect and responsibility, including violence and drug prevention strategies. Strategies l-Counselor will provide weekly lessons and morning announcements to all students. Structure. narratives, notebook Progress Results Logs will be recorded. Results will be discussed at the end of each semester. 93 Page 439 2-Students will develop leadership skills through character education and Student Council. Logs will be recorded. Results will be discussed at the end of each semester. 3-Counselor and Character Education program will promote responsible behavior including violence and drug prevention. All discipline data will be recorded in school's database and will be available to the parents online. Discipline data will be analyzed at the end of each semester. 4-Diversity Club will promote cultural awareness by highlighting various cultures in the community. S-Students will participate in community service projects via Club activities. Volunteer hours 6- The principal will plan avenues for effective communication among parents, staff and administration. 7- A strong parent council will work toward activities and projects that enhance the educational programs and school climate. Home visits will be conducted to establish effective parent-school relationships. Parent-Teacher Organization will be established. Surveys will be administered to evaluate parent-school relationships. Results (home visit number will be collected and analyzed at the end of each semester GOAL-7: ATTENDANCE Student Goals: Student?s attendance rate will be increased gradually over the first ?ve years. Strategies Performance Measure l-Maintain current monitoring of attendance by staff. Daily recording and Informing parents and immediately if student is not attending regularly 2-Maintain current recognition of attendance and current incentives. 3-Teachers will conference with parents. Professional Development Memphis School of Excellence administration team believes that professional development opportunities provide teachers the skills to enhance student learning. Thus the administration along with the sponsoring institution, Read Foundation will make every effort to provide best possible professional developments opportunities for teachers and administrators. Professional development will be essential in core subject areas and will be emphasized throughout the school year. The school administration will bring colleagues, mentors, and outside experts to the school to provide up to date and research based applications. Faculty and staff will also be encouraged to participate 94 Page 440 in local professional development workshop as well as national workshops. Technical assistance will be sought from the universities, and professional consultants. Teachers and administrators will be encouraged to attend state conferences and local educational agency sponsored staff development workshops. Every year, all faculty members and administrators are required to attend designated professional developments workshops and seminars (at least 18 hours) hosted by the school and the regional educational service center. At least one teacher (generally the department chair) will be required to attend a workshop on the state curriculum in four core areas (Mathematics, Science, English LA, and Social Studies). They then will share the information they obtained with other colleagues in department meetings. Memphis School of Excellence Mentoring Program MSE Mentoring Program will be an ongoing professional development activity. The overall focus of the program is to provide individualized assistance to teachers (entry-year teachers and experienced teachers having serious dif?culty in the classroom) and create a positive ongoing professional development atmosphere where everybody can learn from each other. MSE Mentoring Program is a modi?ed version of the Peer Assistance and Review (PAR) program. The PAR program is a research based program and commonly used many states including Texas and Ohio. The components of the program offer a useful professional development program model and also serve as an effective evaluation tool to assess teacher performance. Implementation 1. Formation of teams: Each team consists of one consulting teacher (Mentor Teacher) and one regular teacher. Minimum Quali?cations for a consulting teacher are; a Two years of outstanding teaching service; . Proven outstanding classroom teaching ability; . Proven talent in written and oral communications; . Proven ability to work cooperatively and effectively with other professional staff members; . Extensive knowledge of a variety of classroom management and instructional techniques. 2- Training Consulting Teachers: The three-day workshop is intended to prepare the consulting teacher for his or her new role as a mentor. The workshop focuses on the organizational, technical, and affective knowledge and skills of mentoring. Since not all of the demands of serving as a consulting teacher can be addressed in a three day workshop, it is important that on-going and regularly scheduled seminars be conducted. These seminars should re?ect the current needs and concerns of the consulting teachers. 3- Preparation Time Line for Class Visits: Consulting teachers are supposed to conduct 0 Conference with the assigned teacher. Page 441 Observation, evaluation, and feedback to the teacher. 0 Monitor progress toward goals. Professional development through observation of other consulting teacher/teacher teams. 0 Communicate with the principal. 4- Regular Teacher Orientation: Each regular teacher receives an orientation folder and a local education association handbook. Agenda items for teacher orientation program include the following: Introductions . MSE Mentoring Program description. 0 Background information sheet filled out by the teacher . Observation and conference forms . Professional opportunities . Speci?c information on the ?rst workshop opportunity for new teachers 0 Organizing for the ?rst day of school . How to prepare a student centered classroom, setting the tone 0 Ideas for structuring lesson plans . Management plan and creating a discipline plan before school begins 0 Advice for the ?rst week: over prepared, ?exible, consistent, respect?il . Discussion of teacher presence . Lesson pacing . Staff as a resource . Lists of ?rst day ideas, a checklist of ?rst day musts . Conveying teacher expectations . Preparing a substitute folder . Parent communication New teachers are given the opportunity to ask questions about any topic related to the program, the beginning of school, resources and the like. 5- Teacher Professional Development: The overall focus of the MSE Mentoring Program is to provide individualized assistance to teachers (entry-year teachers and experienced teachers having serious dif?culty in the classroom) and create a positive on going professional development atmosphere where everybody can learn from each other. Therefore, the focus of the teacher's professional development is based upon teachers? speci?c needs in their classroom environment. Teacher is not in a passive position in the group. He/She takes active roles in decision making process. Teacher and the consulting teacher discuss and pick the appropriate method and related instrument together. Initial actions will be taken by the consulting teacher are; . initial discussion with the teacher 0 observation of the classroom . completing a needs assessment survey, and using the teacher's responses as a basis for further discussion . completing a goal-setting agreement with the teacher, where speci?c goals are written and become a major focus over the next few weeks and months. The consulting teacher then uses this information as a basis for observations, feedback, and conferences with the teacher. Page 442 The primary role and responsibility of a teacher is to provide students with appropriate educational activities and experiences that will enable them to ful?ll their potential for intellectual, emotional, physical and social growth. Teachers will help students develop the skills necessary to be a productive member of society. The Read Foundation will be incompliance with the NCLB Act and will seek to hire teachers that are highly quali?ed in core academic subjects (English, reading or language arts, mathematics, science, foreign languages, civics and government, economics, arts, history, and geography) area. There will be a lead teacher/department head (mentor) for each subject area. . The lead teacher will have weekly meetings with the same subject area teachers at the campus. The lead teacher will monitor progress of the same subject area teachers. The lead teacher will also have weekly meetings with the assistant principal who is in charge of curriculum administration to report weekly progress of teachers and students. Data-driven decision-making and student work analysis Memphis School of Excellence staff will be trained how to use technology and professional expertise to improve instruction and operations. MSE is using data-driven decision making to provide more individualized instruction to students, monitor student progress, identify successful instructional strategies, better allocate scarce resources, and communicate better with parents and the community. Reports will be provided timely by the school database and available to all staff members with the responsibility and ability to act on them. Data reports that show data in different ways such as tables, charts, graphs, and trends enable more staff members to access and understand the information. Web-based feature of the system enable teachers to log-in and View what they need. Administrators will use data on attendance, enrollment, student/teacher/parent satisfaction surveys, and test results to assess progress, allocate resources, and create school improvement plans. Throughout the MSE PD process, faculty and staff members will be trained how to read data and apply it to their goals and objectives. They will be also trained in different instructional strategies to apply when the data shows that traditional methods are not working. School administration will help teachers become data-driven decision makers by scheduling time for teams to meet, plan, train, and conduct evaluation. 97 Page 443 Teachers use benchmark assessments tied to state and school standards provide quick snapshots of where students are with regard to the progress they are expected to make. Interventions will be used by them include reemphasizing skills, utilizing additional diagnostics to get at the root cause, changing instructional materials, and creating cohort groups within schools and classrooms of students who have a similar achievement gap or pattern to apply instructional strategies. Measurable School Objectives Activities Responsibility Performance Indicators By the end of The number of second year, passing tutorial hours rates of MSE school conducted for all subject areas Necessary interventions will be and all sub groups implemented to meet the needs of Princi al Cam us of students who will be equal or 1 students who demonstrated de?ciency A dmiEistratorsp pass the TCAP test in higher than on either a TCAP exam or a each subgroup Tennessee state curriculum-based assessment. average. of students who promote to the next 95 of students grade level. will promote to the next grade level. - . Students starting at the 8 grade level A) of students taking 100% of students Will be offered an opportunity to take a the career education . . . . . a. Will take the career Career Education course to ensure that Principal, Dean of course education course in students have an opportunity to Academics upper grades. . . . 8 and upper grades continually raise their personal and . . . 5 years of MSE academic expectations. years. In MSE, students will have an opportunity to take AP courses starting as early as 9th grade. The following AP courses will be offered at various grade levels as the proposed school By the end of fourth have all grade levels (6-12): AP years, Calculus AB, AP Calculus BC, AP 90 of students AP World History, AP . . of students taking Will take at least one 3 Human Geography, AP US History, Prmc1pal, Dean of AP classes in 9:11 and AP course. AP Biology, AP Chemistry, AP Academics er des By the end of four Physics, AP English Language, AP pp gra years, English Literature, AP Computer 60 of students Science A, and AP Environmental Science. In the ?rst year, 9?h graders will be offered AP Human Geography. Multiple AP courses will be offered in a single year as long as there is enough demand by students. will pass test of at least one AP course. Page 444 In High School, students will be able to take dual credit courses at local 50 of students community colleges or 4-year colleges. Principal Dean of of students taking will take dual credit 4 The class load of a high school student Academics dual credit courses in courses in 1 1th and will not exceed two dual credit 1 1th and upper grades. upper grades each courses per semester (fall, spring, and year. summer). In hi l, dent will be requ?tjto 32in:a:ars:zr and Of students Principal, Dean of involving career and 90% of students will 5 technology programthis program, students will earn a Academics technology program Involve career and certi?cate. in school. technology program in high school. Internship Programs will be a requirement for high school students. These programs of students 90 of high school be available to students during involving internship students will the summer months. Based on Programs in high complete internship their interest, students will Principal, Dean of ?1100] Programs in high 6 A school choose a program where they ca emlcs of students can experience working in a completing internship professional environment, programs in high enhance their skills, build their 5?h??l r?sum?s, and complete community service hours. 100 of parents At MSE, teachers take the extra mile will be visited in the 7 2:135:23; 1:51:11: Principal, Campus of parents visited year. For the I.) . gr Administrators followmg years, role in relationships and partnerships new students will be with families. given priority. At the beginning of each school year, the school will organize a two-day The number of workshop for parents at the beginning workshop days 65% of the parents 8 of the ?rst semester in order to Principal, Campus will attend the encourage them to be actively involved Administrators The number of the workshop on the in educating their child, organizing and parents attending the ?rst year. monitoring their time and discussing workshop school matters. At the beginning of each school year, 100% of the the school will organize an in-service The Central Office, The number of the teachers will attend 9 program to train teachers who will Principal, Campus teachers attending the the in-service take part in the implementation of Administrators in-service program program school goals. In order to increase the level of of science fair 20 of science fair partnerships with other organizations, projects prepared projects will be 10 20% of the science fair projects will Principal, Dean of with the help of prepared with the be prepared under the supervision of Academics neighboring help of neighboring neighboring university staff and, once university staff university staff. a month; the school administration will Page 445 invite a Career Guest Speaker ??om the local community to mentor students. The number of speakers invited MSE will offer online supplementary classes to the regular ones. With the implementation of this program, teachers will be able to prepare more Principal, Dean of Academics, IT The number of supplementary on- 50% of classes will have supplementary on-line classes. ll appropriate and indiVIdualized classes Manager, Computer line classes offered according to the different ability levels De artment Chair of student groups. Also, students will be able to take tests online, do drills, and write reports at their oWn pace. In order to improve the skills of 90% of GT students students who are gifted in technology, will take these MSE Will offer an elective Electromcs Principal, Dean of of GT students classes. 12 class as a part of the school 5 Gi?ed Academics takin these classes and Talented program starting from 7?h graders and Robotics class starting ?om 6th graders. In high school, as a part of Gifted and 70 of GT students Talented program, Logic and will take these Mathematical Applications classes classes in high Will be offered to all grades as . . . of GT students school. electives to enrich the mathematics Dean of . . l3 . . taking these classes in curriculum and Astronomy, Academics . high school Envnronmental Science, Introduction to Genetics Engineering to enrich the science curriculum. Starting from 6* grade, every student will be required to prepare a science fair project under the supervision of 100 of students in the science teacher. The project will be grades 6 through 12 in one of the followmg areas: . . of students will prepare science Mathematics, Computer Science, Princ1pal, Dean of . . . fair pl'OjeCtS. l4 . . . . preparing sc1ence fair PhySics, Biology, Chemistry, Academics ro'ects Biochemistry, Botany, Zoology, Engineering, Environmental Science, Earth Science, Literature, Social or Behavioral Sciences including Statistics, and Education. 100 of students in grades 6 through 12 Starting from 6* grade, MSE will offer will take character a character education class. The Princi an of of students taking education class. 15 Character Education class will pa., character education 100 school-wide Academics . encourage students to take class students Will responsibility for their actions. participate in character education program. 100 Page 446 3. Student Evaluation and Remediation Section 3 - Describe the plan for evaluating student academic achievement at the proposed public charter school and the procedures for remedial action that will be used by the school when the academic achievement of a student falls below acceptable standards. To retain its charter, a charter school is required by law to make adequate yearly progress, as measured by the state, tor-vard achievement of the state 's accountaln'lity goals. All schools must participate in the state?s assessment system, the Tennessee Comprehensive Assessment Program (TCAP). Provide a detailed?'amework of the school ?s approach to assessment, including any external and internal measures that will be used to establish and monitor student academic and non-academic progress beyond the state testing requirements. Summarize llOl-t? performance data 1.vill be collected, reported, and used to improve instruction. Provide details about your plan for intervention and remediation should students?til to demonstrate adequate yearly progress. Implementation of Curriculum Memphis School of Excellence will provide a curriculum guide, which is an overview of what should be taught during the academic year. Each teacher will possess a curriculum guide for every subject that he/she teaches. Contained within the curriculum guide is a scope and sequence of the course, subject objectives, standards, TCAP objectives and Gateway connections if appropriate. Teachers will align their lesson plans to the curriculum guide. The Dean of Academics and department chairs will monitor the implementation ofthe curriculum guide and the scope and sequence for each subject at each grade. The curriculum guide will be divided into six parts, each part scheduled for a six weeks period oftime. The curriculum is paced so that every student will be exposed to every concept, which will be tested on the TCAP test. Some students will be able to master all the material in the curriculum guide. Some student will need additional time (intervention) to master the content. Each teacher will determine how students without prerequisite skills would move at the appropriate pace. Assessment MSE will utilize formative and summative assessment tools. Administering a pre-assessment tells the teacher how much background information each student brings to the table. Understanding the knowledge level of each student tells the teachers where to begin and what the and weaknesses of each student are. 101 Page 447 Teachers will administer one pre-assessment at the beginning of each unit. Some of the internal pre-assessment techniques for the classroom include the following examples; 0 KWL- Have students divide a sheet of paper into thirds Above each column write, ?Know,? ?Want to know? and ?Learned.? Have student ?ll in the ?rst two columns. The last column can be ?lled in when the lesson is ?nished. 0 Pre-test, quiz give students a few questions that brie?y skim the information that you will teach next. 0 Have student perform the skill that will be needed (manipulating a microscope, measuring, reading maps, etc.). Brainstorming After writing a major concept word on the board, have students suggest words that ?go with? that word (noun, equator, Boston Tea Party, etc.) Each student must suggest at least one work. After the list is generated, students think how each work relates to the original concept word or students categorize the suggested words. 0 Anticipation guides Before reading a selection or studying a unit, students respond to several statements that challenge or support their preconceived ideas about key concepts in the unit. Read the following statements concerning volcanoes. Put a check next to the statements with which you agree. Be prepared to support your reasoning by thinking about what you know about volcanoes. Also be prepared to share with your group. 1. Volcanoes can form anywhere. 2. How volcanoes form depend on the type of lava. 3. Once a volcano forms it remains active. 4. Volcanoes affect the environment. 0 Inquiry charts students generate questions about the upcoming unit. 0 Possible sentences ?teacher identi?es key vocabulary, concepts or passage in an upcoming unit. Based on prior knowledge the students make predictions about the meaning of words, concepts or the passage. Some of the post-assessment tools include standardized tests, portfolios, essays, journals, science fair projects, student web pages, presentations, etc. Surveys, test results, teacher recommendations, and report cards provide all the data needed to evaluate instruction. MSE will use an online database to track student progress. 102 Page 448 The Dean of Academics will be responsible for aligning all assessments with the instructional program. All lesson plans and benchmark tests are aligned with TCAP objectives. The Dean of Academics and Department Chairs train, monitor, meet regularly, and evaluate the teachers during the implementation of the instructional program. The course outlines and lesson plans include Objectives, TCAP alignment, TCAP competencies, Materials, Procedure, Assessment, Homework, and Resources. The review and test materials used by MSE include information on alignment with TCAP objectives. MSE uses a database of students, teachers, individual schedules, test questions, practice items, and TCAP objectives. All instructional materials used are matched with knowledge and skills of the TCAP curriculum with the help of the database. Below are some examples of how assessment will be integrated into the instructional program: 0 Chunking: Break the information into discrete segments during the period. After teaching the ?ch the teacher assesses how much of the information the students learned. 0 Teacher Feedback: the teacher makes constructive comments on assignments, projects, homework. 0 Student Feedback: (peer editing) Student assesses the quality of another?s student?s work, making constructive comments on assignment, projects, homework. (Students will be taught how to assess the work using a rubric.) Homework: Look over AND respond to the homework that is assigned. The teacher uses homework to assess whether the students truly mastered the material taught the previous day. 0 Reading inventory 0 Skills checklist: make a list of the skills that need to be learned. As the teacher assesses each student he/she checks off the particular skill on a checklist. 0 Whole class response: When a chunk of material has been taught the teacher assesses the entire class at one time to see how many student have mastered the material. This could be in the form of a quiz, response boards (slates/chalk, wipe-off boards/markers), signal cards, written responses, etc. 0 Performance task: Students actually perform the task as an assessment. For example, students measure an object, ?nd the density of an object, ?nd a city using latitude and longitude, design a book cover, etc. 0 Teacher observation: Teacher uses a skills checklist as he/ she circulates through the room - observing, asking questions, looking at student performances or work and recording the results on the checklist. Page 0 Collaborative pairs practice: Given two lists of problems, student pair members take turns working one problem at a time with the other partner observing, coaching and assessing. For example, two lists of sentences with no ending punctuation, two lists of equations, two lists of animals that ?t into a certain category. 0 Summarizing the learning/paraphrasing the learning: After a chunk of information is taught, every student writes a few sentences stating their understanding of the information. 0 Learning logs: Students write summaries of the learning in a notebook or in a section in a notebook. 0 Graphic organizers: Students complete an assigned graphic organizer to show mastery of the learning. For example, after completing instructional activities, students would complete a Venn diagram summarizing what they have learned. (positive/negative numbers, angiosperms/gymnosperms, Paci?c/Atlantic Oceans). 0 Games: The teachers lead the class through whole class games like Jeopardy, Memory, Pictionary. Small groups (three or four students) also play learning games. The teacher observes to see who has mastered the information and if misunderstandings still exist. 0 Rubrics: Effectively assess student work by creating rubrics. To design a rubric: 0 Identify what the best and least acceptable student work will look like. 0 List the criteria for the work a short, simple list. 0 Fill in good, acceptable and ?needs improvement? work. 0 In addition to traditional tests, include Authentic assessment: related to real world problems Portfolio assessment: a collection of student work Performance assessment: student assessed while performing a task such as a speech, experiment, debate, skit, song. Product assessment: students produce a concrete result such as a videotape, script, song, poem, manual, brochure, and exhibit. At MSE, we ensure that students learn socially from each other in a group setting or from their teacher in a one-on-one setting. The teachers use scaffolding techniques and the zone of proximal development concept in determining the level of help each child needs. We also bene?t from the works of Gardner who recommends using various teaching styles for students wo are intelligent in different ways (Logical-Mathematical, Verbal-Linguistic, Spatial, Interpersonal, Intrapersonal, Naturalistic, Kinesthetic, and Musical). We also believe in automaticity; drills in math and literacy development to reinforce problem solving, number sense, analytical reasoning, phonics, ?uency, vocabulary, and reading comprehension. For drills, we utilize computers as well for students to work at their own pace. Page14964 We inform our parents regularly by mail, emails, and phone calls. We hold competitions among our students and offer incentives. Students use textbooks, worksheets, leveled readers, and manipulatives to improve their potential. They can also use educational software to reinforce their academic skills at their own pace. Students can also use the in-house library at MSE site. Interventions Once MSE identi?es objectives and competencies not mastered based on results reported based on benchmark tests, tutor observations, and student products, more emphasis is given to those objectives. Test results will be analyzed through a computer software . The software generates individual and group reports, which display number of questions answered correctly, the questions not answered correctly, mastery of each objective, the alignment of each question with TCAP objectives, item analysis for each test question, recommendations for each student. The report also provides information about a student's academic level which allows placement in a homogeneous group setting. Students will be tutored in the areas that they need help. For students failing to make adequate yearly progress, MSE will offer tutorials for all students. The tutorial can be towards the TCAP test, help in schoolwork, and ELL. After the analysis of test scores, students are placed in small-group settings (3 to 6) or tutored in a one-on-one setting. Students are tutored based on their level by a quali?ed instructor. State curriculum standards and national norms are considered in developing programs to help each student. Teachers instruct in various teaching styles. Students are tutored by the same instructors for at least six weeks to assure consistency. Each student will have an average of ?ve hours of tutoring a week. Our programs will be offered weekdays after school and during weekends. Our program design for remedial tutoring takes into consideration the developmental learning by Piaget, cognitive domain by Bloom, social learning by Vygotsky, multiple intelligences by Gardner, and other techniques such as scaffolding, automaticity, group work, and use of computers. Our teachers use Direct Instruction during the tutorial sessions. In this technique, our teachers follow a direct-instruction sequence to increase the probability that our students will both correctly master and actually use effective academic strategies. This framework includes four major stages: (1) we explicitly show students how to use the skill or strategy, (2) students practice the skill under our supervision--and we give frequent corrective feedback and praise, (3) students use the skill 105 Page 451 independently in real academic situations, and (4) students use the skill in a variety of other settings or situations generalization"). To avoid overloading our students with more new information than they can absorb, we teach only one strategy at a time and make sure that our students have thoroughly mastered each strategy before teaching them another. Our curriculum coordinators observe some of the tutorial sessions for evaluating our instructors, hold weekly meetings, and arrange professional development opportunities. Plan of Action for Interventions At MSE, we determine interventions best suited for each student by: Meeting and conferencing with the parents to involve them in the child?s intervention program; Identifying individual student skill and weaknesses using diagnostic tools; Creating a student individual learning plan for each student along with the parent and teachers; Delivering curriculum that is aligned to state and district standards; Providing ongoing evaluations to monitor student achievement and adjust instruction; Providing parents, teachers and school administrators progress reports; Motivating students by rewarding effort, achievement, and attendance; and Post-testing to determine growth. One of the pedagogies that will be applied for interventions, known as Study Technology, is based on the discoveries of humanitarian and educator, L. Ron Hubbard. Study Technology recognizes three main barriers to learning, each accompanied by distinct and recognizable physical and mental reactions in the student. By observing the reactions of the student the teacher knows a barrier has been struck, and which one, and is able to apply the precise remedy, thus allowing the student to progress toward the learning goal. While the student, over time, learns to recognize his own reactions and be aware of barriers, the teacher helps the student be aware of his understanding or lack of it until he is able to self-monitor his comprehension and recognize misunderstandings independently. Thus, in order that learning barriers be identi?ed and remedied it is important that interventions be delivered in face?to-face mode. Results from assessments are the basis for l) A Customized Education Plan 2) Instruction through the program and 3) Determining overall growth at the completion of the program. After the assessment, evaluation, and gap analysis are completed, a strategy is developed to accelerate the student back to grade level. Test results are loaded into a computer program that automatically grades the test and highlights de?ciencies. From there, goals are generated 106 Page 452 based on speci?c state content.A Customized Education Plan is designed to guide students through various academic topics and build the foundation to progress from one level to the next. Most children are assigned a combination of Math, Language Arts, Science and/or Social Studies goals. Each prescription is individualized for each client; each child receives a tailored academic plan based on individualized needs. But, more importantly, we will document the progression. Just as a medical record is used to document the medical history of a patient, we believe that a personalized education portfolio should document the educational history of the student. Our communication with the parent begins with the initial introduction to the best interventions. At the initial meeting, we consult with the parent to determine the best means of communication. The diagnostic test is reviewed with the parent and the Personalized Education Plan is explained. This goal sheet is then completed by the teacher and the family based on goals that have been chosen from the pretest results. The goal sheet, with timelines, is then forwarded to the Dean of Academics for review before the plan is implemented. At MSE, we believe that the most effective way for students to learn is through a gentle development of concepts and the practice of those concepts extended over a considerable period of time. This is known to us as incremental development and continual practice and review. At its simplest, incremental development is the introduction of topics in easily understandable pieces (increments), permitting the assimilation of one facet of a concept before the next facet is introduced. Both facets are then practiced together until another is introduced. The incrementalization of topics is combined with continual review, wherein all previously learned material is reviewed in every lesson for the duration of the Education Plan. Topics are never dropped but are increased in complexity and practiced every day, providing the time required for concepts to become completely familiar. As concepts become familiar and the requisite skills become automated, learning becomes an enjoyable experience at which students are able to succeed and ?nd satisfaction as well as self-worth. Teachers differentiate activities to adjust the lesson for individual students. Each instructional session includes a balance of guided instruction and the opportunity for students to work independently. All students are taught individually in one-on-one or small group formats. We believe that genuine learning is demonstrated not only through the understanding of a concept but also through the ability to apply that concept to new situations. MSE students master both with ease and con?dence.The standards are incorporated into the Personalized Education Plan and the student?s skills in comparison to the standards are continually assessed throughout the program engagement. Page 453 Our program is skill-based and students are evaluated as to what skills are mastered or what skills need practice. Timelines are determined by the teacher and the family based on input from all these teammates and the results of the pretest. Throughout the intervention process, these goals and timelines are monitored through ongoing mini-assessments to determine pro?ciency gains. If goals and timelines need to be adjusted during the course of the intervention period, teachers can easily ?ex their plan based on need. Teachers complete a weekly report for each child in the intervention program. Teachers keep logs of each lesson, as well as student?s progress reports, assessment results and Customized Education Plan. The instructor must comment on the activities and materials used that week as well as which state content standards they addressed in their instruction. Teachers must also comment on the pro?ciency gains they are making with their students and when various goals have been accomplished. Our goal is to coordinate a face-to-pace Parent/Teacher/Administrator conference. If a face-to-face conference cannot be accommodated, we conduct a conference call. If we cannot facilitate the joint meeting, then we meet with the parents and teachers separately. The parents are required to attend our parent orientation workshop, which is scheduled on the weekend. However, sessions have been scheduled during the week to accommodate parents? work schedules. The following topics are facilitated during the parent meeting: (1) creating a good learning environment; (2) making the most of homework; (3) Helping your child prepare for assessments; (4) Bringing math and reading into everyday life and (5) drinking about why your child might be struggling. Reading Strategies Our reading instructional programs focus on the National Reading Panel?s ?ve dimensions of reading: phonemic awareness, ?uency, vocabulary, phonics instruction and comprehension. The various instructional programs surrounding these dimensions vary (for example guided oral reading or rhyming exercises), but our teachers will be trained in this research-based methodology. Math Strategies All teaching will be organized around all the strands of mathematical pro?ciency using an integrated, coherent approach. Our teachers will use multiple representations of mathematical ideas to support understanding rather than conventional computation-oriented curriculum. Our math lessons emphasize conceptual understanding and expand the range of mathematical concepts beyond arithmetic drills. Teachers always explain the logic behind problems. This style of math instruction is based on signi?cant numbers of research found at the US. Department of Education?s 108 Page 454 website and focuses on the math pro?ciency strands of computing, understanding, applying, reasoning and engaging. Use of Computer Technology A computer software information management system is used to manage, administer, analyze and disaggregate data. Progress is reported to students and parents at the completion of each intervention session. This constant and systematic student feedback is not only a tool for onoging monitoring and tracking of progress but also allow for instructional adjutments when necessary. Students are encouraged to utilize self-assessment in monitoring their own progress. Teachers and parents are provided with electronic program summary reports both and after students complete the intervention program. A written summary progress report is available to parents and teachers upon completion of the program. To the extent that it is practical for the school, written reports may be available in a language that the parents can understand or the information in the progress reports may be communicated to parents in their primary language in alternative forms. A typical one-hour intervention session Check-In/Snack Time (3 minutes): Collect "Weekly Progress Report", review any notes from teachers and home. Warm-up Activity (5 minutes): Give students a ?bell ringer? activity based on the last intervention session. Target Concept (15 minutes): Share the concepts to be worked on by each student at this time, make additional notes about any weaknesses noticed in any of the "Target Skills", record target concepts and materials used on the "Weekly Progress Report". Activities, Assignments, Educational Games (15 minutes): Check the target skills noted on the Education Plan, choose a game or activity that will strengthen a "Target Skill". Individual/Guided Practice (IO-minutes): Each student should be working on their individual assignments that address identi?ed de?ciencies as demonstrated by the Pre-test. Wrap-Up (10 minutes): Review the work of the day and discuss the lesson or topic to work on in the next tutoring session. Pack-up (2 minutes): Students should collect their materials and ready themselves to leave. Grading, promotion, and retention policies MSE has set 70 as a minimum passing grade. The grading system is as follows: 93-100 (Excellent) 85?92 (Good) 75-84 (Satisfactory) 70-74 (Poor but passing) 69-and below (not achieving mastery) Incomplete Page Conduct Grades: Excellent Satisfactory Needs Improvement Poor I Incomplete The thru 8th grade promotion from one grade to another at MSE shall be based on the following criteria: 1. A student who has not maintained a grade average for a school year equivalent to at least 70 on a scale of 100 may not be advanced from one grade level to the next. A student must maintain a yearly average of 70 in English. A student must maintain a yearly average of 70 in Mathematics. A student must maintain a yearly average of 70 in Social Studies A student must maintain a yearly average of 70 in Science. A student must meet the minimum requirements in all TCAP tests. A student must attend at least 95% of the classes throughout the year in order to be promoted to the next grade level. More than 9 unexcused absences within one school year will result in failing. There will be no make-up exam for unexcused absences. sgweww Promotion or retention will be considered on the basis of what is in the best interest of the student. The ?nal determination of whether a student is promoted or retained in the grade shall be made by appropriate school of?cials. Students at grades 6-8 may be retained 0an once. Furthermore. if a student has been retained in 4th or 5th ggade at previous school cannot be retained again. If a student who has not been retained before is decided to be retained, the student?s parents have right to appeal the decision. A student who has not been previously retained may be retained to attain grade level pro?ciency in low performing areas. Although the ?nal decision will be made by the Principal either a student who has not been previously retained will be reatained at ggades 6-8, teachers are responsible for making intial decisions to promote or retain a student in a course or glade based on ggading criteria and promotional standards which are explained above. Before a student has been retained, the student may be offered opportunities, and interventions such as a ?nal exam, a summer school, or an extended year program. If the student still fails to achieve, and cannot demonstrate progress at grade level pro?ciency, the student may be retained by consulting with parents of the student. Page 456 Based on the student?s academic performance, level of improvement, age, social, and economic factors, poor attendance, and important factors if there is any should be taken into consideration before a student is retained. Principal is required to consult with parents, teachers, and other professional staff before the ?nal decision. The decission cannot be made on student?s behaviour, but only based on academic performance. The proggess of the student througout the year must be documented well. Report cards must be sent home.and made sure that parents received them. Parent conferences should be arranged regularly. and inform parents about the student?s academic performance. Parents should be informed about a possible retention two months before the ?nal decision has been made. Graduation criteria for students; Graduation Requirements Memphis School of Excellence will implement the graduation requirements mandated by 0520-1-3-.06 Memphis School of Excellence will offer its students the options graduation path as follows. To meet the requirements for all diplomas, a student must have attained an approved attendance, conduct and subject matter record, which includes a completed graduation path. MSE will award following types of diplomas/certi?cates to students who qualify. 1) The Regular Diploma 2) The Academic Honors Diploma 3) The Distinguished Scholars Diploma 4) Certi?cate of IBP The Regular Diploma shall be awarded to students who: 1. Earn the speci?ed 22 units of credit in the Ready Core program 2. Have an opportunity to take an exit exam to assess readiness for the work place or higher education. ,or Work Keys) 3. have satisfactogy records of attendance and conduct. 4. Conduct a senior capstone project such as, but not limited to 0 Senior project 0 Internship 0 Work based learning a Service learning (minimum 40 hours) 0 Community Service (minimum 40 hours) Pagel?tg71 Requirements for a regular high school diploma Reguired Cre d1 ts Minimum Regun'ed Courses English I English Honors - English II English II Enll'Sh 3 Honors - English English Honors/AP Language English lV/ English IV/Honorsr? AP Literature Math 4 - Algebra I Geometrv - Geometrv Algebra II One and Upper level math . - Biologv Biologv Honors-l Credit - Chemistry or thsics 3 Students will take another one credit course in science based on their interest and prerequisite requirements. US Historv (Honors or AP) -1 Credit - Economics-1,52 Social Studies 3 Credit - Govemment-l/2 Credit - (World Geographv. World Histonr. AP World Geographv. AP World Historv. AP European Historvl-l Credit .3 2 credits in the same language. Wellness-l Credit P.E.-0.5 credit W119i:- Personal Finance-0.5 Credit Visual/Performinu Arts i Visual Arts-l Credit Preparation-l Credit Students will choose i elective courses based on their need and interest. CTE Courses Total 2 The Academic Honors Diploma shall be awarded to students who: ?1 . Earn the speci?ed 22 units of credit in the Ready Core Program. 2. Attain an 85-92 average for the high school career and completing at least one ofthe following: a. earn a nationallv recognized industrv certi?cation b. participate in at least one of the Governor?s Schools c. participate in one of the state?s All State musical organizations (1. be selected as a National Merit Finalist ofSemi-Finalist e. attain a score of3l or higher composite score on the ACT f. attain a score of3 or higher on at least two advanced placement exams g. earn 12 or more semester hours of transcripted postsecondarv credit Students who score at or above all of the subiect area readiness benchmarks on the ACT or equivalent score on the SAT will graduate with honors. 4. have satisfactorv records of attendance and conduct. 5. Conduct a senior capstone project such as, but not limited to 0 Seniorproject - Internship 1 2 Page 458 0 Work based learning 0 Service learning (minimum 40 hours) 0 Community Service (minimum 40 hours) The Distinguished Diploma shall be awarded to students who: 1. Earn the speci?ed 22 units of credit in the Scholars Program. 2. Attain an 93-100 average for the high school career and completing at least one of the following: earn a nationally recognized industLy certi?cation participate in at least one of the Govemor?s Schools participate in one of the state?s All State musical organizations be selected as a National Merit Finalist of Semi-Finalist attain a score of 31 or higher composite score on the ACT attain a score of 3 or higher on at least two advanced placement exams earn 12 or more semester hours of transcripted postsecondm credit wrung-99?s? 3. Students who score at or above all of the subiect area readiness benchmarks on the ACT or eguivalent score on the SAT will ggaduate with honors. 4. have satisfactory records of attendance and conduct. 5. Conduct a senior capstone project such as, but not limited to Senior project Internship Work based learning Service learning (minimum 40 hours) Community Service (minimum 40 hours) Examinations End-of-course examinations will be given in English 1, English II, English Algebra I, Geomeg, Algebra II, US. Histog= Biology 1, Chemism and Physics. Further= the results of these examinations will be factored into the student?s?grade at a percentage determined by the State Board of Education in accordance with T.C.A. ?49-l-302 (2). The weight of the end-of-course examinamon on the student?s course average is as follows for entering 9th graders: I. Fall of 2010 - 20% II. Fall of2011 and 2012 - 25% Fall of 2013 and thereafter - 25% The students are not required to pass anv one examination. but instead the students need to achieve a passing score for the courses. Page 459 The Certi?cate of IEP sh_all be awarded to students who: 1. Complete an Individualized Education Program 2. successfullv completed a portfolio 3. have satisfactog records of attendance and conduct. Scholars Designation/Grades: The averages for Academic Honors and Distinguished Scholar shall be computed from seven semesters. The overall cumulative average for Distinguished Scholar shall be 93-100 (no rounding). The overall grade average for Academic Honors shall be 85-92 (no rounding). These Scholars designations shall be noted on the student?s transcript and diploma. In computing numerical grades for Advanced Placement ?ve points shall be added to the numerical nine weel_