Fortify your Financial Acumen: Learn the Fiscal Responsibility Method

About the Webinar:

Raj Thakkar began the session by underscoring that financial mismanagement is the number one reason charter schools close, with one in seven schools shutting down and the vast majority due to financial issues. His mission—and that of CSBM—is to eradicate financial mismanagement by equipping schools and boards with proven practices, tools, and training. He framed responsible financial management as not just about compliance but about empowering boards, leaders, and stakeholders to make confident, informed decisions that support long-term academic success.

The session centered on Thakkar’s “10 Cures to the 10 Causes of Financial Mismanagement”, a framework that helps schools shift from crisis management to proactive fiscal health. He explained that financial reports and audits are like lab results—they show the condition of the school’s finances—but cures and remedies are like diet and exercise: the actionable practices that improve those results. The ten cures include building clear policies and procedures, maintaining strong accounting systems, processing payroll accurately, passing audits, creating reality-based budgets, producing timely forecasts, managing cash carefully, planning growth wisely, mitigating organizational risk, and valuing both talent and technology.

Thakkar provided practical guidance and “impactful one-pagers” that translate these cures into action. He emphasized the importance of forecasting alongside budget vs. actual reports to get a complete picture of financial health, warning that too many boards stop short at reviewing historical numbers. He encouraged leaders to tag grant revenues and expenses properly to avoid misuse of restricted funds, use fiscal calendars to track key deliverables, and develop mid-year wish lists to guide the use of surplus or unexpected funds. He also highlighted succession planning and staff culture as vital components of financial stability, since turnover and burnout in finance teams can undermine even the best systems.

In closing, Thakkar stressed that charter schools must strike a balance between relationships and results, or what he calls “re-relationships.” Boards and leaders should foster strong working dynamics while also insisting on accountability and timely action. By implementing these cures and remedies, schools can safeguard themselves from the common pitfalls that lead to closure, protect their financial futures, and keep their focus on serving students effectively.