The Charter School Spend Management Guide

Tracking operational costs is not just about good financial management—it’s a cornerstone of transparency, fostering trust and accountability. Without careful cost tracking, schools risk compromising their ability to deliver on their mission.

Accurate spend tracking against budgets and funds provides:

• Clear financial reporting for schools relying on a mix of public funding and private donations
• Accountability in identifying areas where savings can be made or funds need reallocation
• Trust-building with the community and potential donors, enhancing credibility and strengthening relationships
• Compliance with regulations and reporting requirements mandated for charter schools
• Effective resource allocation to areas with the most significant impact on student outcomes

Burn rate refers to the rate at which a school is spending its available funds, particularly in relation to operational expenditure. A high burn rate can lead to cash shortages, forcing the school to make difficult decisions, such as cutting programs or staff.

Why Burn Rate is Important for Charter Schools

• Cash Flow Management: Monitoring the burn rate ensures the school doesn’t overspend and can adjust before funds run out
• Financial Health: Helps evaluate if the school’s spending is sustainable
• Decision-Making: Allocate funds to core educational expenses first

Best Practices

Review Historical Data

Why It Helps: Analyzing spending trends over past years gives insights into where costs have increased, helping to pinpoint areas of concern or opportunities for cost-saving.

Best Practice: Create detailed financial reports comparing year-over-year spending in key categories to identify escalating costs.

Budget Forecasting

Why It Helps: Using historical data to forecast future trends helps schools anticipate changes in funding and plan for upcoming expenses.

Best Practice: Incorporate key variables such as projected enrollment and per-pupil funding adjustments into future budget forecasts.

Benchmark Against Peers

Why It Helps: Comparing your school’s spending and processes with similar institutions can uncover areas where your school may be overspending or inefficient.

Best Practice: Seek comparisons to peer institutions to identify best practices that your school could adopt.

With over 20 years of expertise in spend management, Fraxion is committed to helping schools reduce operational costs and improve efficiency. As a leading procurement software provider, Fraxion’s all-in-one solution for procure-to-pay processes simplifies and automates purchasing, expense management, and accounts payable.

Trusted by charter, private, public, and independent schools worldwide, Fraxion provides real-time visibility and control, ensuring budget and policy compliance while offering advanced spend analysis and reporting. Schools can track spending against grants, funds, and multiple budgets, all while maintaining transparency and audit-readiness.