Who creates the budget and makes financial decisions for a charter school?
Ultimately, the board of trustees is responsible for the financial management of the school. The board or principal usually hires a school business manager to perform day-to-day financial management and to develop and execute the budget. Typically, the following year’s budget is developed by the business manager and school staff members such as teacher committees, department chairs, and administration. The budget is then approved by the board prior to the new fiscal year. Once approved, the budget becomes the legal authorization to spend state funds in order to operate the school. Any subsequent changes to the budget must be authorized by the board. Day-to-day financial decisions are usually made by the business manager and approved by the principal. The board of trustees is responsible for creating the financial policies to be followed by the school’s administration, including defining who is responsible for authorizing expenditures, who executes the transactions, and who records and
