2013-14 Charter Review Report

National Collegiate
Public Charter School

July 21, 2014

DC Public Charter School Board

3333 14th Street, NW, Suite 210
Washington, DC 20010
(202) 328-2660
www.dcpcsb.org

TABLE OF CONTENTS

FINDINGS AND RECOMMENDATION.................................................................................. 2
INTRODUCTION ........................................................................................................................ 3
ANALYSIS .................................................................................................................................... 6
SECTION ONE: GOALS AND ACADEMIC ACHIEVEMENT EXPECTATIONS............... 7
SECTION TWO: COMPLIANCE WITH APPLICABLE LAWS ........................................... 22
SECTION THREE: FISCAL MANAGEMENT AND ECONOMIC VIABILITY ................. 28

fSUMMARY OF FINDINGS AND RECOMMENDATION

The District of Columbia Public Charter School Board (PCSB) conducted a charter review of National
Collegiate Preparatory Public Charter High School (National Collegiate Prep PCS), as required by the
School Reform Act (SRA), with the PCSB Board voting 5-0 on July 21, 2014 to continue the schools
charter, on the condition that the school cure its noncompliance with the SRAs requirements regarding
procurement contracts within two months of the date of its vote.1 Specifically, the school must submit
outstanding documentation regarding qualifying contracts it has entered into from 2009-10 to the
present.
Notably, National Collegiate Prep PCS performed strongly in terms of student proficiency in school
years 2010-11 and 2011-12, and its students have exhibited strong academic growth over the past three
school years. PCSBs analysis of the schools goals and academic achievement expectations
(collectively, goals) reveals that, of its 12 goals that could be assessed, National Collegiate Prep PCS
has fully met one goal, partially met five goals, and did not meet one goal. Regarding the remaining five
goals, there was insufficient evidence for PCSB to make an assessment. Accordingly, PCSBs first
recommendation is that National Collegiate Prep PCS revise its goals so that they are measurable using
among other indicators externally valid and reliable assessments, including the state assessment. If the
school does not revise its goals, PCSB may use the same indicators and standards on future charter
review and renewal analyses that were used in this review.
In addition, PCSB has the following concerns:
1. Non-adherence to PCSB policies regarding attendance/truancy data submission;
2. Non-adherence to the SRA and PCSBs Contract and Minute Submission policy in regards to
procurement contracts;
3. A high mid-year student withdrawal rate, especially for students with disabilities; and
4. Weak economic viability as measured by its fiscal liquidity and net assets
This review also serves as notice to the school regarding these areas of weakness, which PCSB will
review as part of the schools next charter review, which per the SRA PCSB is required to conduct at
least once every five years. The schools failure to improve in these areas, particularly numbers two and
four, may result in a finding of a material violation of the law and/or charter revocation. Regarding
concern number one, also at PCSBs July 2014 meeting the PCSB Board issued a notice of concern for
the schools most recent violations of PCSBs data submission policy, as discussed in more detail below.
Moreover, at the schools ten-year review, failure to meet one or more goal(s) due to insufficient
evidence could be grounds for recommended charter revocation.
Balanced against these areas of weakness, as stated above, the schools overall performance on the
Performance Management Framework (PMF) has been relatively strong for a school in its first five
1

D.C. Code 38-1802.12(a)(3).

years of operation. However, PCSB was unable to assess one academic area closely related to the
schools mission student achievement in the schools International Baccalaureate Program because
the related data had not been published at the time of this review. Given this, PCSB requests that the
school submit these results when they become available, and to include data related to its International
Baccalaureate program in its upcoming annual report.

INTRODUCTION
School Overview
National Collegiate Prep PCS began operation in 2009 under authorization of PCSB. Its mission is to (1)
provide a rigorous ninth through twelfth grade standards-based college preparatory curriculum to
maximize their students' academic achievement; (2) provide an interdisciplinary curriculum which
integrates international studies themes across the academic curriculum leading to an International
Baccalaureate Diploma; and (3) prepare their students to be self-directed, life-long learners equipped to
be engaged citizens of their school, community, country, and world.
National Collegiate Prep PCS currently operates one campus with grades nine through twelve, and is
certified to award International Baccalaureate Diplomas.2 The schools overall performance data on the
PMF, which assesses many indicators beyond reading and math proficiency, including academic growth,
attendance, and reenrollment, are summarized in the table below.

Ward
8

Year
Grades
Opened Served
2009

9 12

2013-14
Enrollment

10-11
PMF

11-12
PMF

12-13
PMF

333

48.6%
(Tier 2)

49.0%
(Tier 2)

51.4%
(Tier 2)

In 2013, the Office of the State Superintendent of Education (OSSE) designated National Collegiate
Prep PCS as a Focus school by for the purposes of its Elementary and Secondary Education Act
waiver. The school received this designation because the performance of the schools African American
and economically disadvantaged students was disproportionately low as compared to other schools in
the state.3

See International Baccalaureate Certificate of Authorization, issued to National Collegiate Prep PCS, dated Feb. 7, 2012,
attached to this report as Appendix A.
3
In 2012-13, 19.1% of National Collegiate Prep PCS African American students scored proficient in math on the DC CAS
(compared to 47.1% in the state), and 32.4% scored proficient in reading (compared to 43.7% in the state). In the same school
year, 19.4% of the schools economically disadvantaged students scored proficient in math (compared to 46.2% in the state),
and 31.3% scored proficient in reading (compared to 42% in the state).

Charter Review Standard

The SRA stipulates that the authorizer shall review [a schools] charter at least once every [five]
years.4 As part of this review, PCSB must determine whether:
(1) The school committed a material violation of applicable laws or a material violation of the
conditions, terms, standards, or procedures set forth in its charter, including violations
relating to the education of children with disabilities; and/or
(2) The school failed to meet the goals and student academic achievement expectations set forth
in its charter.5
If PCSB determines that a school has committed a material violation of law, or has not met its goals and
expectations, it may, at its discretion, revoke the schools charter, or grant the school conditional
continuance.
Additionally, there is a fiscal component to the charter review. PCSB is required by the SRA to revoke a
schools charter if PCSB determines in its review that the school (1) has engaged in a pattern of nonadherence to generally accepted accounting principles; (2) has engaged in a pattern of fiscal
mismanagement; and/or (3) is no longer economically viable.
PCSB review analysis and vote
PCSBs analysis supports that, of the schools 12 goals that could be assessed, National Collegiate Prep
PCS has fully met one goal, partially met five goals, and did not meet one goal. For the remaining five
goals, there was insufficient evidence for PCSB to make an assessment. Due to the lack of evidence the
school provided on these five goals, its partially met status on another five goals, and its steep decline in
academic performance on the state assessment in school year 2013-14, PCSB staff will monitor the
school to collect qualitative data to assess that the schools program is on track for goal attainment by its
next review, which per the SRA PCSB must conduct at least once every five years.
PCSB recommends that the school revise its goals so that they are measurable using, among other
indicators, externally valid and reliable assessments, including the state assessment. If the school does
not revise its goals, PCSB may use the same indicators and standards on future charter review and
renewal analyses that it did on this review. Further, at future reviews, any goal for which valid and
reliable data are not available will be considered to have not been met, with consequences that could
include charter revocation or non-renewal. As further described below, school-issued grades alone are
not considered to be valid and reliable data.

4
5

SRA, D.C. Code 38-1802.12(a)(3).

SRA, D.C. Code 38-1802.12(c).

In addition to the goals and academic achievement expectation concerns discussed above, PCSB staff
identified other areas of concern in this charter review analysis. First, the school has violated PCSBs
policies regarding data submission most recently, by changing attendance data after the validation
window was closed. Second, the school has not adhered to the SRAs requirements regarding
procurement contracts, as further described below. It is imperative that the school submit all outstanding
contracts to PCSB, and to adhere to SRA and PCSB requirements regarding procurement contracts
moving forward.
To this end, PCSBs approval of charter continuance is conditioned on the school bringing itself into
compliance with the SRAs procurement requirements within two months of the PCSB Boards vote on
its continuance. National Collegiate Prep PCS must submit outstanding documentation regarding
qualifying contracts it has entered into from 2009-10 to present. Adherence to contracting requirements
will be assessed in future reviews, and continued noncompliance may lead to a finding of a material
violation of the SRA.
Third, the schools mid-year withdrawal rate (analyzed in support of the schools student satisfaction
goal) is one of the highest of all DC charter high schools. Given this, PCSB determined the school did
not meet the related goal. For the school to fully meet this goal at its next charter review, it must ensure
that its mid-year withdrawal rate is in line with the sector average or the consequences could be charter
revocation as a result of failing to meet its goals and academic achievement expectations. In addition,
nearly one-quarter of its students with disabilities withdrew from the school during school year 2013-14
a point of concern that PCSB will closely monitor moving forward.
Finally, National Collegiate Prep PCS economic viability is weak as measured by its net asset position
and liquidity. The school should improve its financial position, given that PCSB is required by the SRA
to revoke a schools charter if it finds the school is economically nonviable.
These points of concern notwithstanding, National Collegiate Prep PCS academic performance was
relatively strong in the 2011 and 2012 school years, with proficiency rates higher than the state average
in reading, composition, and biology, and slightly below average in math.6 It then fell far below state
averages in all subject areas in 2013 the most recent year covered by this review. However, in all three
years it has been calculated, the schools median growth percentiles in reading and math have been
higher-than-average, indicating that the school moves students forward academically at a rate higher
than the average DC public high school.
One academic area closely related to the schools mission PCSB was unable to assess student
achievement in the schools International Baccalaureate Program because related data had not been
published at the time of this review. Given this, PCSB requests that the school include the following
data in its upcoming annual report so that this component of its program can be more accurately
6

The school received no proficiency rates in 2010, its first year of operation, because it was only serving ninth grade students
at the time. Statewide assessments in high school are only given to tenth graders.

measured: (a) the number of students who took tests in each IB subject and grade; (b) the IB scores of
each student, and (c) the number of diplomas attempted and earned.
Taking all aspects of the schools performance into account, the PCSB Board voted 5-0 on July 21, 2014
to continue the schools charter, on the condition that the school cure its noncompliance with the SRAs
requirements regarding procurement contracts within two months of the date of its vote.7
Finally, this review report serves as notice to National Collegiate Prep PCS that it must improve in its
areas of weakness proper data submission, adherence to contract requirements, mid-year withdrawal
rates (for all students and for students with disabilities), and economic viability all of which will be
assessed as part of the schools next charter review within the next five years.

D.C. Code 38-1802.12(a)(3).

SECTION ONE: GOALS AND ACADEMIC ACHIEVEMENT EXPECTATIONS

The SRA requires PCSB to review whether a school has met its goals and student academic achievement
expectations (expectations) at least once every five years. Goals are specific aims that are measurable
and usually related to a schools mission, which may be categorized as academic, non-academic, and
organizational, whereas expectations are student academic aims measured by assessments. Goals and
expectations are only considered as part of the review analysis if they were included in a schools
charter, charter amendment, or accountability plans approved by the PCSB Board (collectively, the
Charter).
The school has academic expectations in place that students will demonstrate proficiency and/or
content mastery in five subjects English, world language, social science/history, math, and science.
PCSBs practice is to analyze a schools state assessment performance to determine proficiency in each
subject (this practice is reinforced by the fact that the schools charter refers to DC CAS performance as
a measure of these academic expectations8). However, National Collegiate Prep PCS current position is
that their end-of-term grades demonstrate students content mastery in these subjects, and it submitted
student transcripts as evidence of this.
PCSB staff does not agree that end-of-term grades are an appropriate measure of content mastery for
three reasons. First, PCSB seeks externally verifiable data whenever possible; grades generated by the
school staff do not meet this standard. Second, there is no mention of end-of-term grades being the
measure of proficiency in the schools charter.9 Finally, the school submitted only a portion of student
transcripts to PCSB, making it impossible to conduct a valid analysis of end-of-term grades. For all of
these reasons, end-of-term grades were not considered as part of PCSBs determinations.
% of Student Transcripts submitted by
National Collegiate Prep PCS
9th Grade10
10th Grade
11th Grade
12th Grade

SY 09-10
39.3%
(33 of 84)

SY 10-11
57.4%
(54 of 94)
56.2%
(41 of 73)

SY 11-12
49.4%
(42 of 85)
80.6%
(58 of 72)
100.0%
(46 of 46)

SY 12-13
56.0%
(51 of 91)
52.3%
(45 of 86)
92.2%
(71 of 77)
92.9%
(52 of 56)

See National Collegiate Prep PCS Charter Application, p. 12, attached to this report as Appendix B; see also the
Accountability Plan included on p. 107 of the application.
9
See National Collegiate Prep PCS Charter Agreement, dated Aug. 17, 2009, attached to this report as Appendix C.
10
For students with five or more years of enrollment, a grade in their first year as a ninth grade student was counted towards
the ninth grade submission rate of that first year while a grade in the following year was counted towards the ninth grade
submission rate of the following year.

The chart below summarizes PCSBs determinations of whether the school met its goals and academic
expectations. These determinations are further detailed in the body of this report.

Goal or Expectation
Students will demonstrate proficiency and/or content
mastery in English (i.e., reading and writing).

Met?
Partially

Students will demonstrate proficiency and/or content

mastery in a World Language.

No
(Insufficient
Evidence)

Students will demonstrate proficiency and/or content

mastery in mathematics.

Partially

Students will demonstrate proficiency and/or content

mastery in history/social studies and of its application to
current events.

5
6

Students will demonstrate proficiency and/or content

mastery in science.
Student satisfaction with the schools programs and
ability to demonstrate an understanding of Honor,
Scholarship and Leadership values.

Teacher satisfaction with the schools operations and

programs.

Family/parents support of the school and its mission.

10

11

The Board of Trustees will ensure that National

[Collegiate] Prep [PCS] is financially viable and
demonstrates fiduciary responsibility for all monies
received by and for the school.
The Board of Trustees will ensure that National
[Collegiate] Prep [PCS] has access to appropriate and
quality human and capital resources to support the
education program.
The Board of Trustees will ensure that National Prep
maintains and enforces its fiscal and organizational
policies.

No
(Insufficient
Evidence)
Partially
No
No
(Insufficient
evidence)
No
(Insufficient
evidence)

Partially

Yes

No
(Insufficient
Evidence)

1. Students will demonstrate proficiency and/or content mastery in English (i.e., reading and
writing).
Assessment: National Collegiate Prep PCS partially met this academic expectation. The schools
reading proficiency rate was above the state average for the first two years the test was given at the
school, but dropped 20 percentage points in 2012-13. However, the schools reading median growth
percentile (MGP) has increased every year, showing that despite a drop in proficiency, students were
growing in reading at average to higher-than-average rates.
The school requested that this goal be measured by the grades students received in its English courses
rather than just on test scores. However, as described above, the school submitted only a portion of its
students transcripts. For the cohorts of students for which the school provided at least 90% of
corresponding transcripts (students in the eleventh grade in 2011-12, and students in eleventh and
twelfth grades in 2012-13), passage rates of English courses ranged from 84.4% to 97.8%.
Reading Proficiency
National Collegiate Prep PCS tenth grade reading proficiency rate was at or above the state average in
2010-11 and 2011-12, but dropped by 21.3 percentage points from 2011-12 to 2012-13.

National Collegiate Prep PCS

DC CAS Reading Proficiency
Tenth Grade Students
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

48.4%

53.2%
31.9%

2010-11
2011-12
2012-13
National Collegiate PCS
State Average (Grade 10)

Reading Growth
The graph below represents National Collegiate Prep PCS MGP in reading, which is the median of its
individual students growth percentiles.11 An MGP of 50 indicates that a schools students have
11

A students growth percentile (SGP) can range from 1% to 99%, and reflects that students academic growth compared
to that of other DC students in their grade with similar initial proficiency. For example, a student with a reading SGP of 77%
SGP has grown in reading proficiency (as measured by the DC-CAS), as much or more than 77% of his/her peers.

average growth in reading proficiency, as compared to other DC students in the same grades and with
the same initial DC CAS performance.
As shown in the graph below, National Collegiate Prep PCS reading MGP has increased each year
since 2010-11, the first year this metric was calculated, and has consistently been at or above 50.

National Collegiate Prep PCS

Reading MGP
100
80
60
40
20

49.5

55.1

63.3

2010-11

2011-12

2012-13

0
National Collegiate PCS

50th Percentile

DC CAS Composition Proficiency

National Collegiate Prep PCS tenth grade composition proficiency rate was above the state average in
2010-11 and 2011-12. However, from 2011-12 to 2012-13, this proficiency rate dropped from 75.8% to
26.5%.

National Collegiate Prep PCS

DC CAS Composition Proficiency
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

75.8%
35.4%
2010-11
2011-12
National Collegiate PCS

26.5%
2012-13
State Grade 10 Average

10

Qualitative Evidence
In December 2013, PCSB conducted a Qualitative Site Review (QSR) of the school, in which the
following was observed.
English classes generally met PCSBs standard for proficient instruction
but [were] not exemplary. The QSR team noted that students spoke with
vocabularies that seemed to be appropriate for their grade levels; every
classroom had SAT words of the day posted and some teachers referenced
these words. Instruction in English classes was teacher-centered and
questions were primarily low-level. Students were inconsistently engaged
in the lesson content and activities. Teachers checks for understanding
were cursory, involving either choral responses rather than individual
assessments or rapid-fire questions without follow-up for adjustment.12

2. Students will demonstrate proficiency and/or content mastery in a World Language.

Assessment: National Collegiate Prep PCS did not meet this academic expectation because there
was insufficient evidence to assess it. The school requested that this goal be measured by the grades
students received in its world language courses. However, as described above, the school submitted only
a portion of its students transcripts and PCSB does not accept student grades as evidence of proficiency.
For the cohorts of students for which the school provided at least 90% of corresponding transcripts
(students in the eleventh grade in 2011-12, and students in eleventh and twelfth grades in 2012-13),
passage rates of world language courses ranged from 69.6% to 87.5%.
Qualitative Evidence
During PCSBs December 2013 QSR, the following was observed.
The QSR team observed Spanish instruction. Teachers had posted Spanish
vocabulary words, but the lesson objectives were written in English.
Teachers did not consistently speak Spanish to the students or require
students to speak Spanish.13

3. Students will demonstrate proficiency and/or content mastery in mathematics.

Assessment: National Collegiate Prep PCS partially met this academic expectation. The schools
math proficiency rate was just below the state average for two years, but dropped 21.5 percentage points
in 2012-13. However, its math median growth percentile has been higher than 50 for each of the past
12
13

See National Collegiate Prep PCS QSR Report, dated February 5, 2014, p. 4, attached to this report as Appendix D.
See Appendix D, p. 5.

11

three years, indicating that students are gaining in proficiency at a faster rate than other students in the
city.
The school requested that this goal be measured by the grades students received in its math courses.
However, as described above, the school submitted only a portion of its students transcripts and PCSB
does not accept student grades as evidence of proficiency. For the cohorts of students for which the
school provided at least 90% of corresponding transcripts (students in the eleventh grade in 2011-12,
and students in eleventh and twelfth grades in 2012-13), passage rates of math courses ranged from
88.3% to 97.8%.
DC CAS Math Proficiency
National Collegiate Prep PCS math proficiency rate was slightly below the state average in 2010-11,
and decreasing slightly 2011-12. From 2011-12 to 2012-13, the schools DC CAS proficiency rate
dropped by 21.5 percentage points, and was 25.9 percentage points below the state average.

National Collegiate Prep PCS

DC CAS Math Proficiency
Tenth Grade Students
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

42.2%

40.3%
18.8%

2010-11
National Collegiate PCS

2011-12

2012-13
State Average (Grade 10)

Math Growth
The graph below represents National Collegiate Prep PCS MGP in math, which is the median of its
individual students growth percentiles.14 A growth percentile of 50 indicates that a schools students
have average growth in reading proficiency, as compared to other DC students in the same grades and
with the same initial DC CAS performance.

14

A students growth percentile (SGP) can range from 1% to 99%, and reflects that students academic growth compared
to that of other DC students in their grade with similar initial proficiency. For example, a student with a reading SGP of 77%
has grown in reading proficiency (as measured by the DC CAS) as much or more than 77% of his/her peers.

12

National Collegiate Prep PCS math MGP has been above the 50th percentile since 2010-11, the first
year this metric was calculated.

100

National Collegiate Prep PCS

Math MGP

80
60
40
59.5

63.6

2010-11

2011-12

55.4

20
0
National Collegiate PCS

2012-13
50th Percentile

Qualitative Evidence
During PCSBs December 2013 QSR, the following was observed.
In about half of the math class observations, students were intellectually
engaged in the lesson. Students were invited to assess their own work and
make improvements. Teachers also provided students with specific
feedback on how students could improve their work product. The QSR
team observed limited cases of interdisciplinary instruction in math during
a music class. The other math classes observed failed to fully engage
students or struggled with classroom management. Students worked on
content such as multiplication and order of operations in an Algebra 2
Honors class; solving a right triangle in a Trigonometry class; and
defining domains and x and y values in a twelfth grade math class.15

4. Students will demonstrate proficiency and/or content mastery in history/social studies and of
its application to current events.
Assessment: National Collegiate Prep PCS did not meet this academic expectation because it
provided insufficient evidence. The school requested that this goal be measured by the grades students
received in its history/social studies courses. However, as described above, the school submitted only a
15

See Appendix D p. 5.

13

portion of its students transcripts, and PCSB does not accept student grades as evidence of proficiency.
For the cohorts of students for which the school provided at least 90% of corresponding transcripts
(students in the eleventh grade in 2011-12, and students in eleventh and twelfth grade in 2012-13),
passage rates of history/social studies courses ranged from 89.6% to 87.5%.

5. Students will demonstrate proficiency and/or content mastery in science.

Assessment: National Collegiate Prep PCS partially met this academic expectation. The schools
biology proficiency rate was at the state average for two years, but dropped significantly in 2012-13.
The school requested that this goal be measured by the grades students received in its science courses.
However, as described above, the school submitted only a portion of its students transcripts and PCSB
does not accept student grades as evidence of proficiency. For the cohorts of students for which the
school provided at least 90% of corresponding transcripts (students in the eleventh grade in 2011-12,
and students in eleventh and twelfth grade in 2012-13), passage rates of science courses ranged from
88.3% to 100.0%.
DC CAS Biology Proficiency
National Collegiate Prep PCS biology proficiency rate was above the state average in 2010-11 and
2011-12, but decreased by 17.2 percentage points from 2011-12 to 2012-13.

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

National Collegiate Prep PCS

DC CAS Biology Proficiency

52.3%

50.0%
32.8%

2010-11
National Collegiate PCS

2011-12

2012-13
State Grade 10 Average

14

Qualitative Evidence
In May 2013, PCSB conducted a QSR of the school, in which the following was observed.
One of the science courses observed was taught with a high level of
expectations for student involvement and proficiency. During class, the
students completed differentiated assignments while rotating through work
stations. Students were able to make real-world connections with the
content they learned in class. In another science course, three students
answered a question incorrectly, and the teacher did not address their
errors. The students struggled with an activity because of the lack of
clarity the teacher gave when providing directions to the students.16

6. Student satisfaction with the schools programs and ability to demonstrate an understanding
of Honor, Scholarship and Leadership values.
Assessment: National Collegiate Prep PCS did not meet this goal. PCSB considered a variety of
evidence, including mid-year withdrawal rates, reenrollment rates, discipline rates, and results from the
schools Qualitative Site Review. The schools reenrollment rate demonstrates that just over two thirds
of eligible students re-enrolled at the school in 2011-12, increasing to over 80% in school year 2012-13.
The qualitative evidence was mixed, but generally strong, supporting that the schools students often
demonstrate an understanding of positive character values. The school historically has had very high
discipline rates; these dropped considerably in the year that just ended to well below the charter average.
However, the schools mid-year withdrawal rate is extremely high among the highest in the charter
sector -- indicating significant student dissatisfaction with the program. Moreover, the rates among
students with disabilities are double that of its general education population, with approximately one
quarter of the students withdrawing in the middle of the year. Based on this, PCSB cannot conclude that
the school has met this goal.

16

See Appendix D, p. 4.

15

Reenrollment Rate
National Collegiate Prep PCS reenrollment rate was slightly below the high school charter sector
average in 2011-12, and at the high school charter average in 2012-13.

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

National Collegiate Prep PCS

Reenrollment Rates16

75%

82.1%

68.8%

2009-10 to 2010-11
2010-11 to 2011-12
2011-12 to 2012-13
National Collegiate PCS
HS Charter Average

17

Mid-Year Withdrawals
Since opening, National Collegiate Prep PCS has had high mid-year withdrawal rates. In 2012-13,
National Collegiate Prep PCS had the highest mid-year withdrawal rate among all DC charter schools
only an alternative high school had the same withdrawal rate. In 2013-14 the school had the thirdhighest mid-year withdrawal rate among DC charter schools. This indicates a significant minority of
students are not satisfied with the schools program. Additionally, in 2013-14, 23.1% (12 of 52 students)
of the schools special education students withdrew from the school mid-year. This is a point of concern
that PCSB intends to monitor closely.
Student Attrition: Mid-Year Withdrawal

Students that
withdrew mid-year
Total Students
Mid-year
withdrawal rate
High School Charter
Sector Average

20091018

2010-11

2011-12

2012-13

2013-14
(through
May)

21

22

35

52

44

84

167

203

310

330

25.0%

13.2%

17.2%

16.8%

13.3%

8.6%

11.9%

8.9%

10.4%

17

The 2009-10 to 2010-11 reenrollment rates were self-reported by the school in its 2010-11 annual report, attached to this
report as Appendix E.
18
Self-reported by the school in its 2009-10 annual report, attached to this report as Appendix F.

16

Discipline
The following tables detail National Collegiate Prep PCS discipline rates since 2009-10. PCSB has
calculated the charter sector averages for these data points starting in 2011-12. Red shading indicates
that the schools discipline rate is above the sector average. From 2011-12 to 2012-13, the schools outof-school suspension rate increased greatly by 31.1 percentage points. While its suspension and
expulsion rates were above the charter high school average in 2012-13, these rates declined significantly
in the 2013-14 school year.

National Collegiate
Prep PCS
Charter High
School Average

National Collegiate
Prep PCS
Charter High School
Average

Out-of-School Suspensions
09-10
10-11
11-12
14.3%
None
11.8%
(12 students) reported (24 students)
-

13-1419
5.2%
(17 students)

24.5%

18.1%

Long-Term Suspensions (10+ Days)

09-10
10-11
11-12
12-1320
0%
None
2.0%
1.9%
(0 students) reported (4 students) (6 students)
-

09-10

National
Collegiate Prep
PCS
Charter Average21

25.0%

12-13
42.9%
(133 students)

1.0%

Expulsions
10-11
11-12

13-14
0.0%
(0 students)

0.9%

0.6%

12-13

13-14

3.6%
(3 students)

3.6%
(6 students)

3.0%
(5 students)

3.9%
(12 students)

0.0%
(0 students)

1%

0.5%

0.7%

Qualitative Evidence
During PCSBs QSRs, the following was observed. This evidence, while mixed, is generally supportive
of the school meeting its goal. In the schools 2012-13 QSR, PCSB staff observed:
In nearly all of the classroom observations, students were respectful and
courteous to their peers and the classroom teacher. Two students were
heard correcting each others language and encouraging each other to
behave in a way that was appropriate for school. The teachers were polite
to students and never raised their voices to address student behavior. The
19

The 2013-14 data is provisional and has not been fully validated by schools.
In 2012-13, PCSB defined long-term suspension as eleven11 or more days.
21
Expulsion averages are available only for the charter sector as a whole, not for specific grade bands.
20

17

Spanish teacher often communicated her behavioral expectations to

students in Spanish. One teacher was observed frequently using sarcastic
comments towards her students. This was the only classroom observed
where students were not respectful to the teacher or towards one another.22
Further, in the schools 2013-14 QSR, PCSB staff noted:
Students were well-behaved in the schools hallways and acted as
responsible and respectful school citizens. Students had their shirts tucked
in, were respectful of guests, and did not exhibit any misbehavior.23

However, in almost one-quarter of the observations, students were not

consistently respectful of teachers. In particular, the team observed
repeated cases of students interrupting their teachers or talking over
them.24
7. Teacher satisfaction with the schools operations and programs.
Assessment: National Collegiate Prep PCS did not meet this goal because it provided insufficient
evidence. The school provided insufficient evidence from a survey it conducted. While its teacher
attrition rate neared half in its latest school year, in other years it was much lower.
Teacher Attrition Rate
National Collegiate Prep PCS reported the following teacher attrition rates in its annual reports. PCSB
bases this rate on the number of teachers that retired, resigned, or were terminated between October of
one school year through the first day of school of the following school year.
Teacher Attrition Rate25
2009-10 2010-11
National Collegiate Prep PCS
29%
1%

2011-12
0%

2012-13
41%

Teacher Survey Results

The school provided undated teacher survey results from one of its four years in operation.26 However,
this document is incomplete (43 out of 85 pages submitted). Additionally, the staff surveys questions
22

See Appendix D, p. 7.
See Appendix D, p. 4.
24
See Appendix D, p. 8.
25
See annual reports. See National Collegiate Prep PCS 2009-10, 2010-11, 2011-12, and 2012-13 Annual Reports, attached
to this report as Appendices F, E, I, and J.
26
See National Collegiate PCS staff survey results, attached to this report as Appendix G.
23

18

are not all appropriate for National Collegiate Prep PCSs program. For example, there are about twenty
items related to a faith-based program, while other questions related to a distance learning program. Still
others related to infant care, and some questions related to students transitioning from elementary to
middle to high school. Given this, PCSB did not include these survey results in its assessment of this
goal.

8. Family/parents support of the school and its mission.

Assessment: National Collegiate Prep PCS did not meet this goal because it provided insufficient
evidence. The school provided an undated document titled Parent Survey Data Summary from one
of its four years in operation.27 Its unclear how many parents responded to this survey because parent
responses are detailed by percentages, rather than including an n-size of respondents. For the most part,
the responding parents found the school to be meeting or exceeding governance, educational, financial,
and other standards.

9. The Board of Trustees will ensure that National [Collegiate] Prep [PCS] is financially viable
and demonstrates fiduciary responsibility for all monies received by and for the school.
Assessment: National Collegiate Prep PCS partially met this goal. Audits of the school indicate that
the Board of Trustees has demonstrated fiduciary responsibility for the schools funds. However, the
schools economic viability is an area of concern, and, because of this, the school has partially met this
goal. National Collegiate Prep PCS cash liquidity and net asset position are weak, although there was
slight improvement in these areas in FY2013. The schools current ratio has been volatile over the past
four years, but improved in FY2013, indicating that the school can currently meet its short-term
financial obligations adequately.

10. The Board of Trustees will ensure that National [Collegiate] Prep [PCS] has access to
appropriate and quality human and capital resources to support the education program.
Assessment: National Collegiate Prep PCS has met this goal. As described in further detail below in
this reports fiscal section, the schools spending decisions are aligned with PCSBs financial metrics for
general education public charter schools. The school has consistently hired Highly Qualified teachers (as
defined by the federal Elementary and Secondary Education Act), and has increased its teaching staff to
account for increased enrollment from year-to-year. Additionally, the schools positive cash flow from
operations supports that the school has met this goal.
27

See Appendix G.

19

Highly Qualified Teachers

From 2009-10 through 2011-12, the school employed a high rate of Highly Qualified Teachers (as
defined by the federal Elementary and Secondary Education Act).
Highly Qualified Teachers (HQT)28
2009-10
2010-11 2011-12 2012-13
Not
# of HQT
3
12
19
reported
Total Teachers
4
12
19
22
Percentage of
75%
100%
100%
HQT
Qualitative Evidence
The following qualitative evidence indicates National Collegiate Prep PCS board of trustees is
responsive to the schools educational expenses.
A PCSB consultant attended the National Collegiate board meeting on
May 15thThe boarddiscussed facilities and finance issues and voted
to approve the budget presented at the meeting The budget that was voted
on includes an increase in programmatic funds for the IB program, a
projection of higher legal fees to ensure compliance with special education
law and interventions to support students struggling with literacy and
numeracy.29

11. The Board of Trustees will ensure that National Prep maintains and enforces its fiscal and
organizational policies.
Assessment: National Collegiate Prep PCS did not meet this goal because there is insufficient
evidence to assess it. A review of the meeting minutes of the schools board of trustees indicates that its
board actively discussed such policies in from 2010-12. However, PCSB does not have on record the
schools fiscal and organizational policies, and as such cannot further assess this goal.
National Collegiate Prep PCS 2010 through 2012 meeting minutes indicate that the schools board of
trustees discusses and maintains its policies. No examples of this were found in 2013 or 2014.

In April 2010, the board discussed the schools conflict of interest policy, whistle-blower policy
for the employee handbook, and a retention policy for internal controls.30

28

See Appendices F, E, I, and J.

See Appendix D, p. 2.
30
National Collegiate Prep PCS Board Meeting Minutes, dated April 21, 2010, attached to this report as Appendix K.
29

20

In June 2010, the board discussed their policy for teacher contract approval, and requested to
review all proposed contracts before they were executed.31
In September 2011, the board again discussed the schools discipline policy.32
In February 2012, the board discussed the development of a charter school policy handbook.33
In October 2012, the school discussed board voting procedures as well as the schools retirement
benefits and grievance and special education policies.34

31

National Collegiate Prep PCS Board Meeting Minutes, dated June 16, 2010, attached to this report as Appendix L.
National Collegiate Prep PCS Board Meeting Minutes, dated September 21, 2011, attached to this report as Appendix M.
33
National Collegiate Prep PCS Board Meeting Minutes, dated February 15, 2012, attached to this report as Appendix N.
34
National Collegiate Prep PCS Board Meeting Minutes, dated October 17, 2012, attached to this report as Appendix O.
32

21

SECTION TWO: COMPLIANCE WITH CHARTER AND APPLICABLE LAWS

The SRA requires PCSB to determine at least every five years whether a school has committed a
material violation of applicable laws or a material violation of the conditions, terms, standards, or
procedures set forth in its charter, including violations relating to the education of children with
disabilities.35
Compliance with Applicable Laws
The SRA contains a non-exhaustive list of applicable laws, and PCSB also monitors charter schools for
compliance with additional laws in annual compliance reviews.
Compliance Item

Description

Schools Compliance Status

2009-10 to present

Fair enrollment
process
SRA 38-1802.06

DC charter schools must have a fair

and open enrollment process that
randomly selects applicants and does
not discriminate against students.

Compliant since 2009-10

Notice and due

process for
suspensions and
expulsions
SRA 38-1802.06(g)

DC charter school discipline policies

must afford students due process36
and the school must distribute such
policies to students and parents.

Compliant since 2009-10

Student health and

safety
SRA 38-1802.04
(c)(4); DC Code 41321.02; DC Code
38-651

The SRA requires DC charter

schools to maintain the health and
safety of its students.37 To ensure that
schools adhere to this clause, PCSB
monitors schools for various
indicators, including but not limited
to whether schools:
- have qualified staff members that
Compliant since 2009-10
can administer medications;
- conduct background checks for
all school employees and
volunteers; and
- have an emergency response plan
in place and conduct emergency
drills as required by DC code and
regulations.

35

SRA 38.1802.12(c).
See Goss v. Lopez, 419 U.S. 565 (1975).
37
SRA 38.1802.04 (c)(4)(A).
36

22

Equal employment
SRA 38-1802(c)(5)

A DC charter schools employment

policies and practices must comply
with federal and local employment
laws and regulations.

Compliant since 2009-10

Insurance
As required by the
schools charter

A DC charter school must be

adequately insured.

The schools insurance

documentation did not identify
the school in 2011-12.38

A DC charter school must possess all

required local licenses.

Compliant since 2009-10

DC charter schools receiving Title I

funding must employ Highly
Qualified Teachers as defined by
ESEA.

Compliant since 2009-10

Proper composition of
board of trustees
SRA 38-1802.05

A DC charter schools Board of

Trustees must have:
an odd number of members that does
not exceed 15;
a majority of members that are DC
residents; and
at least two members that are parents
of a student attending the school.

In 2011-12, the school did not

have verification that the
majority of its board members
were DC residents.39

Accreditation Status
SRA 38-1802.02(16)

A DC charter school must maintain

accreditation from an SRA-approved
accrediting body approved by the
SRA.

Achieved Middle States

Candidacy status in 2012-13

Facility licenses
DC code 472851.03(d); DC
regulation 14-1401
Highly Qualified
Teachers
Elementary and
Secondary Education
Act (ESEA)

PCSB Notices
In April 2010, the PCSB Board issued National Collegiate Prep PCS a Notice of Concern for its 20.22%
truancy rate in the second quarter of the 2009-10 school year,40 and also issued a Notice of Deficiency in

38

See National Collegiate Prep PCS 2011-12 Compliance Report, attached to this report as Appendix P.
See Appendix P.
40
See PCSB Board Meeting Minutes, dated April 19, 2010, attached to this report as Appendix V; Board Action Proposal,
Proposal to Issue Board Action for Attendance & Truancy 2nd Qtr. National Collegiate Prep PCS, date March 15, 2010,
attached to this report as Appendix W.
39

23

May 2010 for a 23.16% truancy rate during the third quarter of the 2009-10 school year.41 In December
2010, the Board lifted the Notice of Deficiency.42
At PCSBs July 2014 board meeting, PCSB staff will recommend to the PCSB Board to issue National
Collegiate Prep PCS a notice of concern for its practice of changing attendance codes in such a time
frame that violates PCSBs data submission policy. The school was informed on February 28, 2014 that
it could not change data after PCSBs validation window had closed (55 days after the data was
inputted). However, a complaint that was received by PCSB staff indicates that this practice was still
continuing as of May 2014.
Procurement Contracts
SRA 38-1802.04(c)(1) requires DC charter schools to utilize a competitive bidding process for any
procurement contract valued at $25,000 or more, and within three days of awarding such a contract, to
submit to PCSB all bids received, the contractor selected, and the rationale for which contractor was
selected. To ensure compliance with this law, PCSB requires schools to submit a Determinations and
Findings form to detail any qualifying procurement contract that the school has executed. To date,
National Collegiate Prep PCS has not submitted any documents of contracts valued at $25,000 or more
to PCSB, and is therefore in violation of the SRA.

Year
2009-10
2010-11
2011-12
2012-13

Qualifying
contracts
executed by
school
Data
unavailable
Data
unavailable
9
5

Corresponding
documentation
submitted to
PCSB
0
0

Special Education Compliance

Charter schools are required to comply with all federal and local special education laws, including,
among others, the Individuals with Disabilities Education Act43 (IDEA) and the Rehabilitation Act of

41

See letter from Brian Jones, PCSB Board Chair, to Walter Pryor, National Collegiate Prep PCS Board Chair, dated May
17, 2010, attached to this report as Appendix Q.
42
See January 5, 2011 letter from Brian Jones, PCSB Board Chair to Walter Pryor, National Collegiate Prep PCS Board
Chair, dated January 5, 2011, attached to this report as Appendix R.
43
20 USC 1413(a)(5).

24

1973.44 The following section summarizes National Collegiate Prep PCS special education compliance
from 2010-11 to the present.
References to Special Education in School Charter Agreement
References in a schools Charter to special education must comply with special education laws.
National Collegiate Prep PCS description of serving special education students is appropriate and
complies with such laws.
OSSE Special Education Compliance Reviews
OSSE monitors charter schools special education compliance and publishes three types of reports
detailing its findings: (1) Annual Determinations; (2) On-Site Monitoring; and (3) Quarterly Findings
(also called Special Conditions Reports). OSSEs findings of National Collegiate Prep PCS special
education compliance are summarized below.
Annual Determinations
As required by IDEAs implementing regulations, OSSE annually analyzes each Local Education
Agencys (LEA) compliance with 20 special education compliance indicators, and publishes these
findings in an Annual Determination report.45 Each years report is based on compliance data collected
several years earlier. As such, OSSE does not require schools to cure any compliance issues detailed in
these reports. In 2012, OSSE published its 2010 Annual Determination reports (based on the schools
2009-10 performance).
In 2011, OSSE found that National Collegiate Prep PCS was 83% compliant with special education
requirements and noted that the school Meets Requirements in fulfilling all applicable federal and
local special education regulations.46 In 2010, OSSE found that National Collegiate Prep PCS was 70%
compliant, and designated the school as Need[ing] Assistance with special education compliance.47
On-Site Monitoring Report
OSSE periodically conducts an on-site assessment of an LEAs special education compliance with
student-level and LEA-level indicators, and publishes its findings in an On-Site Monitoring Report. If a
school is less than 100% compliant with a student-level and/or LEA-level indicator, it must implement
corrections and report these corrections to OSSE.48
In 2013, OSSE published an on-site Compliance Monitoring Report of National Collegiate Prep PCS
PCS. The school was required to implement corrections in the areas indicated in the table on the next
page. OSSE has since verified that the LEA has implemented corrections for all identified student level
and LEA level findings.
44

20 USC 794.
As required by federal regulation 34 CFR 300.600(c).
46
As required by federal regulation 34 CFR 300.600(c).
47
See FFY 2010 IDEA Part B LEA Performance Determination, attached to this report as Appendix S.
48
If OSSE finds that the school is less than 100% compliant with a student-level indicator that was impossible for the school
to cure retroactively, OSSE would identify the point of noncompliance as an LEA-level violation (Prong II).
45

25

Student-Level Compliance

Compliance Area

Number of
indicators where
corrections were
required

Initial Evaluations
and Reevaluations

4 of 7

IEP Development

4 of 16

Least Restrictive
Environment

Total indicators
where corrections
were required

0 of 2

8 out of 25

LEA-Level Compliance

Compliance Area

Number of
indicators
where
corrections were
required

Extended School Year

0 of 1

Least Restrictive
Environment

1 of 1

IEP

0 of 1

Data Verification

0 of 2

National Instructional
Materials Accessibility
Standard

1 of 1

Fiscal Requirements

8 of 21

Total indicators
where corrections
were required

12 out of 29

Special Conditions Quarterly Reports

OSSE submits quarterly reports to the U.S. Department of Educations Office of Special Education
Programs detailing each LEAs compliance in three areas: (1) Initial and Reevaluation Timelines; (2)
Early Childhood Transition Timelines; and (3) Secondary Transition Requirements.
In recent special conditions reporting on OSSEs DC Corrective Action Tracking System Database
(DCCATS), National Collegiate Prep PCS was found to be noncompliant for Reevaluation Timelines
during FY 2012 Quarter Three. According to OSSE, the LEA has since corrected this issue of
noncompliance.49
During FFY 2013 Quarters One, Two, and Four, National Collegiate Prep PCS was found to be
noncompliant for Secondary Transition Requirements.50 As of May 2014, OSSE confirms that the
corrections are still pending and the school is within the timelines for correcting all findings. 51
Blackman Jones Implementation Review
With compliance requirements pursuant to IDEA and the 2006 Blackman Jones Consent Decree, OSSE
49

See Appendix T for FFY 2012 Quarter 3 Quarterly Findings Summary.

See Appendix T for FFY 2013 Quarter 1 and 2 Quarterly Findings Summary.
51
LEAs have 365 days (1 year) from the date of the final notice in which to address the areas of noncompliance identified by
OSSE.
50

26

manages and oversees the Blackman Jones database that tracks each LEAs timely implementation of
Hearing Officer Determinations (HODs) and Settlement Agreements.
As of May 2014, OSSE reports that National Collegiate Prep PCS has one open HOD that is currently
timely.
Of additional note is National Collegiate Prep PCSs low reenrollment rate of students with disabilities
between school year 2012-13 and 2013-14. As per the verified data within the PMF, the schools rate
(70%) is 15 percentage points lower than the reenrollment rate for general education students.

27

SECTION THREE:
FISCAL MANAGEMENT AND ECONOMIC VIABILITY
Separate and apart from the standard for charter renewal, the SRA requires that PCSB Board shall
revoke a schools charter if PCSB determines that the school:

Has engaged in a pattern of non-adherence to generally accepted accounting principles

(GAAP);
Has engaged in a pattern of fiscal mismanagement; or
Is no longer economically viable.

In the following section, PCSB has analyzed National Collegiate Prep PCS financial record in these
areas. For FY2012, the school was identified as a low fiscal-performing school, but has made modest
financial improvements in FY2013. While the school has shown a year of fiscal stability, there has not
been a consistent history of stable financial performance and position. The schools cash liquidity and
net asset reserves relative to annual expenditures remain areas of concern. The school has no pattern of
fiscal mismanagement and no pattern of non-adherence to GAAP.
Adherence to Accounting Principles and Fiscal Mismanagement
Audits of National Collegiate Prep PCS establishes that the school adhered to GAAP. The school had
unqualified opinions on these financial statements, with no material weaknesses52 or significant
deficiencies53 identified in its past four audits. Also, the school had unqualified opinions in its FY2010
and FY2013 single audits54 with no material weaknesses or significant deficiencies identified.
Economic Viability
National Collegiate Prep PCS is economically viable based on the schools financial performance,
sustainability, liquidity, and debt burden, as described below.55 The schools cash liquidity and net asset
position are weak and remain concerns with slight improvement in FY2013.
Financial Performance
PCSB assesses a schools financial performance with two key indicators. The first indicator is a schools
operating result how much its total annual revenues exceed its total annual expenditures. In general,
PCSB recommends that a schools annual operating results equal at least zero. Another indicator of a
52

A material weakness is defined as a deficiency, or a combination of deficiencies, in in internal control, such that there is
a reasonable possibility that a material misstatement of the entitys financial statements will not be prevented, or detected and
corrected on a timely basis.
53
A significant deficiency is identified by the auditor as existing 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.
54
Per the federal Single Audit Act of 1984, as amended by the Single Audit Act Amendments of 1996, any entity that
receives $500,000 or more in federal funding is required to undergo a Single Audit conducted by an independent, external
auditor, in accordance with the Office of Management and Budgets Circular A-133 (OMB A-133).
55
National Collegiate Preparatory PCS financial ratios are based on the audited reports between FY2010 and FY2013.

28

schools financial performance is its earnings before depreciation (EBAD),56 a financial performance
measure that eliminates the effects of financing and accounting decisions.
National Collegiate Prep PCS has achieved positive operating results in three of the past four years, with
a $306,385 result in FY2013. National Collegiate Prep PCSs management primarily attributes the most
recent operating surplus to meeting enrollment and budget projections. The school experienced a similar
trend with its earnings before depreciation in the past four years, with the most recent EBAD being
$396,251 in FY2013.
Fiscal Period
Operating
Result
EBAD

2010

2011

2012

2013

$192,371

$64,792

$(190,677)

$306,385

$192,371

$112,542

$(127,183)

$396,251

Expenditures
National Collegiate Prep PCS spending decisions, illustrated in the graph below, are aligned with
PCSBs financial metrics for general education public charter schools. 57

National Collegiate Preparatory:

Expenditures as % of Revenues (FY2010 - FY2013
averages)
Personnel expenses

Direct student costs

56%

10%

13%

17%

Occupany expenses

Office and General

expenses

0%

56
57

20%

40%

60%

80%

100%

EBAD is the change in net assets plus amortization and depreciation.

Note that the percentage does not equal 100% because expenditures exceeded revenues on average.

29

Sustainability
A schools net assets58 and primary reserve ratio demonstrate its sustainability.59 PCSB recommends that
schools accrue net asset reserves equal to three to six months of operating expenditures; PCSB would be
concerned with net assets reserves below zero. Over the past four years, National Collegiate Prep PCS
net asset position remains positive, but weak. The schools net asset position grew from $158,844 in
FY2010 to $339,344 in FY2013. Yet, the schools FY2013 primary reserve ratio was only 0.06,
meaning that its net asset reserves equal 6% of its annual expenditures. This is a concern because the
schools net asset reserves are less than three to six months of operating expenditures. The table below
details the schools net assets and primary reserve ratios over the past four years.
Fiscal Period
Net Assets
Primary
Reserve Ratio

2010

2011

2012

2013

$158,844

$223,636

$32,959

$339,344

0.09

0.08

0.01

0.06

Liquidity
Two indicators of a schools short-term economic viability are its current ratio60 and its days of cash on
hand.61 A current ratio greater than one indicates a schools ability to satisfy its immediate financial
obligations. National Collegiate Prep PCS current ratio was volatile over the past four years, peaking at
1.2 in FY2011, declining to 0.4 in FY2012, and increasing again to 1.1 in FY2013. The schools
FY2013 current ratio indicates that the school can meet its short-term financial obligations with current
assets.
Typically, 90 days or more of cash on hand indicates a school can satisfy immediate obligations with
cash. Less than 30 days of cash on hand is a liquidity concern. National Collegiate Prep PCS days of
cash on hand has been weak over the last four fiscal years, with the schools days of cash on hand on
June 30 decreasing from 16 days in FY2010 to 10 days in FY2013. The schools days of cash on hand
remains a concern.
To meet its short-term obligations, the school has relied on short-term borrowing. National Collegiate
Prep PCS established a $100,000 secured line of credit and the school had an outstanding balance of
$60,000 as of June 30, 2013. The school anticipates the $60,000 outstanding balance being repaid in
FY2014. Additionally, National Collegiate Prep PCS obtained short-term advances from Building Hope
in FY2010 and FY2011 to assist in cash flow while waiting for reimbursements from the Office of the
State Superintendent of Education.
58

Net Assets equals total assets minus total liabilities.

Primary Reserve Ratio equals total net assets divided by total annual expenses.
60
Current assets divided by current liabilities. Current refers to the 12 months or normal operating cycles that a school can
convert certain assets into cash or use up or settle certain obligations.
61
Cash on hand equals unrestricted cash and cash equivalents divided by total expenditures divided by 360 days.
59

30

The schools current ratio and days of cash on hand trends are detailed in the table below.
Fiscal Period

2010

2011

2012

2013

Current Ratio

0.9

1.2

0.4

1.1

16

10

Day Cash on
Hand62

Cash flow from operations indicates whether a school produces adequate cash flow to meet its operating
needs. Since FY2009, National Collegiate Preparatory PCS has produced positive cash flow from
operations, as detailed in the below table.
Fiscal Period
Cash Flow from
Operations

2010

2011

2012

2013

$240,971

$145,586

$57,131

$261,688

Debt Burden
A schools debt ratio63 indicates the extent to which a school relies on borrowed funds to finance its
operations. A debt burden ratio in excess of 0.92 is a source of concern to PCSB. National Collegiate
Prep PCS debt burden has fluctuated over the past four years as a result of short-term borrowing to
supplement liquidity challenges.
Fiscal Period
Debt Ratio

62
63

2010
0.75

2011
0.37

2012
0.91

2013
0.49

Because there was no breakdown for unrestricted and restricted cash in FY2009, total cash was used.
Debt ratio equals total liabilities divided by total assets.

31