2013-14 Charter

Review Report
Two Rivers
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.................................................................................. 1
INTRODUCTION ........................................................................................................................ 1
ANALYSIS .................................................................................................................................... 6
SECTION ONE: GOALS AND ACADEMIC ACHIEVEMENT EXPECTATIONS............... 4
SECTION TWO: COMPLIANCE WITH APPLICABLE LAWS ........................................... 27
SECTION THREE: FISCAL MANAGEMENT AND ECONOMIC VIABILITY ................. 32

SUMMARY OF FINDINGS AND RECOMMENDATION

The District of Columbia Public Charter School Board (PCSB) staff has conducted a charter review of
Two Rivers Public Charter School (Two Rivers PCS), as required by the School Reform Act
(SRA).1
Two Rivers PCS fully met 14 goals and academic achievement expectations (academic expectations),
substantially met one goal, and partially met one goal. The school has not materially violated the law or
its charter, and is in strong fiscal health.
Based on these findings, the PCSB Board voted to grant full continuance to the school without
conditions.

INTRODUCTION
School Overview
Two Rivers PCS began operation in 2004 under authorization of PCSB and recently completed its tenth
year in operation. Its mission is to nurture a diverse group of students to become lifelong, active
participants in their own education develop a sense of self and community and become responsible and
compassionate members of society. The school uses Expeditionary Learning, an educational model that
emphasizes interactive, hands-on project-based learning.2 Additionally, it focuses on developing
students social skills through its use of the Responsive Classroom model.
Two Rivers PCS currently operates one campus with grades pre-kindergarten-3 through eighth grade.
The schools overall performance data are summarized in the table below.

Ward

Year
Grades
Opened Served

1
2

2004

2013-14
Enrollment

PK3-8

516

10-11 PMF

11-12 PMF

12-13 PMF

PK3-2

Met 6 of 8 targets
(75%)

Met 5 of 8 targets
(62.5%)

Met 7 of 7 targets
(100%)

3-8

75.0%
(Tier 1)

73.8%
(Tier 1)

69.9%
(Tier 1)

DC Code 38-1802.12(a)(3).
See p. 3 of Two Rivers PCS 2012-13 Annual report, attached to this document as Appendix A.

.
Charter Amendments
On March 7, 2014, Two Rivers PCS submitted a request to amend its charter to allow it to open a second
campus that will replicate its pre-kindergarten through eighth grade program beginning in SY2015-16,
and to increase its enrollment ceiling from 750 to 1100 to reflect the student population at the new
campus.3 The PCSB Board conditionally approved this request at its June 2014 board meeting, on the
conditions that the school (1) receives full continuance on this charter review; and (2) updates its goals
and academic achievement expectations according to PCSB guidelines.
Previous Charter Review
In 2009-10, PCSB conducted a five-year charter review of Two Rivers PCS. The school was found to
have met two of three academic performance standards and all non-academic performance standards in
place at the time.4 PCSB found the schools governance and finances to also be strong. Based on this
review, the PCSB Board voted at its January 2010 meeting to fully continue the schools charter.5
Charter Review Standard
The SRA stipulates that the authorizer shall review [a schools] charter at least once every [five]
years.6 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.7
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 a 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.

See PCSB board memorandum, Charter Amendment Request to Replicate Two Rivers PCS, dated May 19, 2014,
attached to this report as Appendix B.
4
See 5-year charter review, attached to this report as Appendix C.
5
See January 2009 meeting minutes, attached to this report as Appendix D.
6
SRA 38-1802.12(a)(3).
7
SRA 38-1802.12(c).

PCSB staff review analysis and recommendation

Two Rivers PCS fully met 14 goals and academic achievement expectations (academic expectations),
substantially met one goal, and partially met one goal. The school has committed, as a condition to
replication, to amending its goals to align with PCSB policy.
The school is very strong academically one of the highest performing charter schools in the sector.
The school has not materially violated the law or its charter, and is in strong fiscal health. Based on
these findings, the PCSB Board voted to grant full continuance to the school without conditions.

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 renewal analysis if they were included in a schools
charter, charter amendment, or accountability plans approved by the PCSB Board (collectively, the
Charter).
The chart below summarizes PCSBs determinations whether the school met its goals. These
determinations are further detailed in the body of this report.

2a

2b

2c
2d

4
5

Goal or Expectation
To implement learning expeditions longterm, in-depth investigations of a theme or
topic that engage students through authentic
research, projects, fieldwork, service, and
adventure as the foundation of teaching and
learning.
To expect and attain high levels of student
achievement, critical and creative thinking,
effective communication skills, and character
development, and to develop a sense of joy in
learning.
To demonstrate consistently high expectations,
teamwork, sense of adventure, respect for
diversity, and high quality work in the
classroom, in the larger school community, and
in the community-at large.
To promote a culture of high expectations,
collaboration, service, and respect for diversity.
To create a student-centered environment
focused on the whole child.
To increase student test scores form year-toyear, so that students are performing at or
above grade level in reading and mathematics,
and at comparable levels with students in area
private schools, suburban public schools, and
DCPS schools.
To prepare graduates for the areas top public
and private high schools.
To use diagnostic, formative, and summative
assessments to evaluate student performance
and inform curricular and instructional

Met?

Yes

Yes

Yes

Yes
Yes

6a

6b

8
9
10
11a

11b

11c

11d
12
13
14
15a
15b
16

practices.
To create a community of professionals
dedicated to personal growth through learning
and the sharing of expertise.
To create a flexible school environment that
supports creative student grouping, innovative
use of instructional time, and common staff
planning time.
To use portfolio assessment to demonstrate
students knowledge, skills, and character, and
as a means of understanding curriculum and
instructional practice.
To demonstrate the character values of
responsibility, compassion, discipline,
integrity, and courage in the classroom, in the
larger school community, and in the
community-at-large.
To foster family and community participation.
To create a school that is diverse by design.
To engage all members of the community in
continuous improvement through a system of
shared decision-making, a culture of revision,
and ongoing school review.
To promote inquiry and innovation in a culture
of reflection, critique, revision, and
collaboration.
To involve staff, students, and parents in a
collaborative community of reflective learners
engaged in ongoing assessment, planning, and
action to improve teaching and learning.
To regularly collect and analyze data to assess
progress toward a common vision, set
improvement goals, and develop a
comprehensive school improvement plan.
To conduct an extensive annual school review.
To develop a stable student enrollment with
high rates of student retention.
To expand access continuously to funding
sources from the government, corporate, and
foundation sectors
To make careful financial decision that further
the mission of the school.
To have a clean audit and balanced budget.
To participate in the larger charter school
community.

Yes

Partially

Yes
Yes
Yes

Substantially

Yes
Yes
Yes
Yes
Yes

To implement learning expeditions long-term, in-depth investigations of a theme or topic that

engage students through authentic research, projects, fieldwork, service, and adventure as the
foundation of teaching and learning.
Assessment: Two Rivers PCS has met this goal. The school has consistently used with fidelity learning
expeditions as its foundation of teaching and learning.
Two Rivers PCS uses learning expeditions as its primary instructional strategies. In each classroom,
teachers choose two areas of study from the curriculum framework, which students explore[] in much
greater depth each yearAll units of study involve intensive research, reading, writing, scientific
exploration, and real-world application.8 In its 2012-13 annual report, Two Rivers PCS explained that,
[Two Rivers PCS] educators have continually improved projects by refining recurring themes,
strengthening in-depth student tasks, and discovering new authentic research opportunities and areas to
focus project work. The school also reported that students participated in 22 unique expeditions in
2013, in fields such as Urban Planning, Biology, Anthropology, Ecology, Construction, and Economics.
Work products included policy proposals, urban design schematics, and presentations to the D.C.
Council and the Two Rivers PCS community.9
Qualitative Evidence
PCSB conducted a Qualitative Site Review of Two Rivers PCS in October 2013, during which the
following was observed in support of this goal.
[The] review team members observed a lesson related to results from
the 6th grade scholars on field study. During the observed lesson,
students were assigned to small groups of three or four and given the
opportunity to present results related their in-depth investigation of food
options and choices. Students invited comments and questions from their
small group members. Similarly, an elementary class participated in an indepth investigation centered on how to allocate and disburse a finite
amount of money. The class worked collaboratively and reported how
they planned to use the money and listed several concerns and questions
linked to the learning expedition.10

2a. To expect and attain high levels of student achievement, critical and creative thinking, effective
communication skills, and character development, and to develop a sense of joy in learning.
2b. To demonstrate consistently high expectations, teamwork, sense of adventure, respect for
diversity, and high quality work in the classroom, in the larger school community, and in the
community-at large.
8

See Two Rivers PCS 2009-10 through 2012-13 Annual Reports, attached to this report as Appendices E, F, G, and A.
See 2012-13 annual report, p. 21.
10
See p. 4 of Two Rivers PCS site review, attached to this report as Appendix H.
9

2c. To promote a culture of high expectations, collaboration, service, and respect for diversity.
2d. To create a student-centered environment focused on the whole child.
Assessment: Two Rivers PCS met these goals. Qualitative evidence supports the school meeting these
goals.
Two Rivers PCS uses the Responsive Classroom approach to develop students social-emotional
learning and character. Responsive Classroom is an elementary teaching method that incorporates
the students social and emotional growth into their academic learning, stemming from the notion that
children learn best through social interaction and when they are explicitly taught socially and emotional
skills along with their academic lessons.11 The school reports that this approach create[s] a safe
environment where children are able to take academic and social risks to help children understand the
importance of kindness toward and acceptance of all people, to celebrate differences in people and
cultures, and to learn important social skills such as empathy and problem solving.12
Specific strategies within this approach implemented by the school include starting each day with
Morning Meeting, creating clear and consistent approaches to discipline fostering social responsibility,
classroom organization, and family communication to facilitate families as partners in their childrens
education. Two Rivers PCs middle school students study Scholarly Habits, designed to prepare them
for success in high school and beyond.
Qualitative Evidence
The PCSB review team observed the following in support of these goals.
The review team observed evidence that the school stresses student
achievement, critical and creative thinking, communication, character
development, and joy of learning. Teachers provided students lessons in
multiple modalities (e.g., auditory, kinesthetic, visual, etc.) and
incentivized students with friendly competitions (i.e., Last time you did it
in a little over a minute, lets see if you can get through these flashcards in
under a minute!) to help students develop a sense of joy in learning.

In addition, students were encouraged to be critical and creative thinkers

and expand on their communication skills by teachers asking thoughtful
questions and often encouraging students to explain what they were
learning.

11

The Responsive Classroom Approach. http://teach.com/what/teachers-teach/the-responsive-classroom-approach.

Accessed July 1, 2014.
12
See Appendix A, p.7

Teachers encouraged intellectual engagement by asking students to

present content. In one math class, the students had to represent
multiplication problems on a number line, and explain their
representations to the rest of the class. Students had extensive choice in
completing learning tasks.

The review team looked for evidence of teamwork and high-quality work
within the context of community. Many of the observed classrooms
supported an environment where students were encouraged to work with
others such as in pairs (e.g., turn and talk practice) and, during the 6th
grade jigsaw exercise, in groups of three to four.

In one classroom, the teacher allowed the students to highlight one of their
fellow classmates achievements during the lesson. This process was
called spot the dot.

Students begin each school day with a morning meeting aimed to enhance
character development and to create a sense of community within the
school. During a student led community meeting, students asked for high
quality work for magazine submissions and the best pieces would be
selected to be read at a future community meeting.13

3. To increase student test scores from year-to-year, so that students are performing at or above
grade level in reading and mathematics, and at comparable levels with students in area private
schools, suburban public schools, and DCPS schools.
Assessment: Two Rivers PCS has met this academic expectation. PCSB did not compare Two Rivers
PCS students performance to that of students in private, suburban, and DCPS schools. However, the
school met its goal based on its strong academic performance proficiency rates well above the state
average, and higher-than-average median growth percentiles, indicating that Two Rivers PCS students
are growing faster than their peers in the state.
Early Childhood Performance
Two Rivers PCS has met the majority of the early child targets it set, as detailed in the table on the
following pages. The only area in which the school did not meet its target is first and second grade math
growth.
13

See Appendix H, pp. 4-5.

Pre-Kindergarten Literacy and Numeracy Growth

Year

2010-11

2011-12

Target
85% of preschool and pre-kindergarten
students who score below age equivalency in
the fall administration of the reading and/or
quantitative subtests of the Brigance
Developmental Inventory will score at or
above age equivalency on the reading and
quantitative subtests of the Brigance
Developmental Inventory in the spring
administration.
80% of pre-kindergarten-3 and prekindergarten-4 students will maintain or
progress to age equivalency on the reading or
quantitative subtest by the spring
administration on the Brigance assessment.

Target Met?14

No
68% of students increased
to age equivalency on
both tests.

Yes
91.7% of students
maintained or progressed
to proficiency.

Pre-Kindergarten Literacy Growth

2012-13

60% of pre-kindergarten-3 and prekidnergarten-4 students will progress to age

equivalency in literacy/language on the
Brigance Development Inventory
Standardized assessment.

Yes
99.0% of students met this
goal.

K-2 Literacy Growth (as measured by mCLASS)

Year
2010-11

2011-12

2012-13

Target
90% of kindergarten students will progress
to at least proficiency by the spring
administration in reading on the Wireless
Generation mCLASS assessment.
90% of kindergarten students will maintain
or progress to proficiency by the spring
administration on the Wireless Generation
mCLASS reading assessment.
60% of kindergarten through second-grade
students will advance at least one level in
reading on the mCLASS reading.

Target Met?15
Yes
98% of students
progressed to above
proficiency.
Yes
98% of students
maintained or progressed
to proficiency.
Yes
88.0% of students met this
goal.

14

In 2010-11, all early childhood results were rounded to the nearest whole number. In 2011-12 and 2012-13, early
childhood results were rounded to the nearest tenth decimal.
15
In 2010-11, all early childhood results were rounded to the nearest whole number. In 2011-12 and 2012-13, early
childhood results were rounded to the nearest tenth decimal.

First and Second Grade Literacy Achievement

Year
2010-11

2011-12
2012-13

Target
73% of first- and second-grade students will
be projected to proficient in reading on the
Northwest Education Associations Measures
of Academic Progress (NWEA MAP).
73% of first- and second-grade students will
be projected to proficient in reading on the
NWEA MAP.
60% of first through second-grade students
will meet or exceed college readiness targets
in reading on the NWEA MAP.

Target Met?16
Yes
79% of students scored
proficient.
No
62.8% of students were
projected as proficient.
Yes
84.0% of students met this
goal.

First and Second Grade Math Growth and Achievement

Year

Target

2010-11

73% of first- and second-grade students will

score at or above the expected level of growth
in mathematics on the NWEA MAP.

2011-12

2012-13

73% of first and second-grade students will

score at or above the expected level of growth
in math by the spring administration on the
NWEA MAP.
60% of first through second-grade students
will meet or exceed college readiness targets
in mathematics on the NWEA MAP.

Target Met?17
No
63% of students scored at
the expected level of
growth.
No
58.7% of students scored
at or above the expected
level of growth.
Yes
95.0% of students met this
goal.

16

In 2010-11, all early childhood results were rounded to the nearest whole number. In 2011-12 and 2012-13, early
childhood results were rounded to the nearest tenth decimal.
17
In 2010-11, all early childhood results were rounded to the nearest whole number. In 2011-12 and 2012-13, early
childhood results were rounded to the nearest tenth decimal.

10

Reading Proficiency
Since 2009-10, the schools reading proficiency has been well above the state average, although it has
declined from 2010-11 to present.

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

Two Rivers PCS: Grades 3-8

DC CAS Reading Proficiency

72.1%

77.9%

74.1%

64.7%

2009-10

2010-11

2011-12

2012-13

Two Rivers PCS

Grades 3-8 State Average

Reading Growth
The graph below represents Two Rivers PCS median growth percentile (MGP) in reading, which is
the median of its individual students growth percentiles.18 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.
In reading, the median growth of Two Rivers PCS students exceeds the rate of peers with comparable
starting scores attending other public charter and traditional schools in the District.

100

Two Rivers PCS: Grades 3-8

Reading MGP

50
64.0

62.2

56.5

0
2010-11
2011-12
Two Rivers PCS

2012-13
50th Percentile

18

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.

11

Math Proficiency
Since 2009-10, the schools math proficiency has been well above the state average.

Two Rivers PCS: Grades 3-8

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

58.8%

67.6%

72.6%

68.8%

2009-10

2010-11

2011-12

2012-13

Two Rivers PCS

Grades 3-8 State Average

Math Growth
The graph below represents Two Rivers PCS median growth percentile (MGP) in math, which is the
median of its individual students growth percentiles.19 A growth percentile of 50 indicates that a
schools students have average growth in math proficiency, as compared to other DC students in the
same grades and with the same initial DC CAS performance.
In math, a majority of Two Rivers PCS students are exceeding the rate of peers with comparable starting
scores attending other public charter and traditional schools in the District.

100

Two Rivers PCS: Grades 3-8

Math MGP

80
60
40
20

61.5

59.4

57.5

2010-11

2011-12

2012-13

0
Two Rivers PCS

50th Percentile

19

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.

12

Academic Proficiency of Students with Disabilities

As of April 2014, 22.7% of the schools students had been identified as students with disabilities
(SWD) requiring special education services, higher than the overall charter sector rate of 12%. The
following table compares the percentage of the schools SWD population at each special education
service level to that of the charter sector as a whole.
Students with Disabilities by
Special Education Service Level
Level 1 Level 2 Level 3
Two Rivers
45.3%
26.5%
16.2%
PCS
Charter Sector 32.1%
32.3%
14.5%

Level 4
12.0%
21.2%

Since 2009-10, the reading proficiency rate of Two Rivers PCSs students with disabilities has been
above the state average.
Reading Proficiency
Among Students with Disabilities
09-10
10-11
11-12
Two Rivers PCS 33.3%
28.6% 42.9%
State SWD
Average 15.7%
17.5% 17.1%
(Grades 3-8)

12-13
37.8%
20.2%

Since 2009-10, the math proficiency rate of Two Rivers PCSs students with disabilities has been above
the state average.
Math Proficiency
Among Students with Disabilities
09-10
10-11
11-12
Two Rivers PCS 25.6%
22.4% 40.5%
State SWD
Average 18.4%
21.1% 20.3%
(Grades 3-8)

12-13
45.1%
25.4%

4. To prepare graduates for the areas top public and private high schools.
Assessment: Two Rivers PCS has met this goal. Since 2009-10, the schools eighth grade reading and
math proficiency rates have been consistently higher than the state average. In 2012-13, 85.7% eighth
grade students tested proficiency in reading, and 82.9% of students tested proficient in math.
13

Eighth Grade Proficiency: Reading and Math

The schools eighth grade proficiency rates in reading and math have consistently been above the state
average, and have increased each year since 2009-10.

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

Two Rivers PCS: Grade 8

DC CAS Reading Proficiency

57.1%

59.1%

2009-10
2010-11
Two Rivers PCS

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

70.6%

85.7%

2011-12
2012-13
8th Grade State Average

Two Rivers PCS: Grade 8

DC CAS Math Proficiency

57.1%

68.2%

2009-10
2010-11
Two Rivers PCS

76.5%

82.9%

2011-12
2012-13
8th Grade State Average

High School Enrollment

Two Rivers PCSs reports (but PCSB has not verified) that the majority of graduating eighth grade
students were admitted to selective high schools, including Benjamin Banneker Academic High School,
School Without Walls High School, and Duke Ellington School for the Arts, Dematha Catholic High
School, Georgetown Visitation Preparatory School, and Edmund Burke High School.

14

5. To use diagnostic, formative, and summative assessments to evaluate student performance and
inform curricular and instructional practices.
Assessment: Two Rivers PCS has met this goal. The school details in its annual reports how it uses
data to both evaluate student performance and to inform curricular and instructional practices. The
primary tool for this is the Data Analysis Strategy Loop. According to its 2012-13 annual report,
teachers continuously learn how to use data to help them differentiate in the classroom, so that
instruction creates different pathways for students of different starting places to all access the same
larger conceptual understandings.20
The school also details in its annual report several assessments used to measure student growth, provide
interventions and to share with parents to show their childrens progress.21 These assessments include
the Measures of Academic Progress, Achievement Network quarterly benchmark tests, and Dynamic
Indicators of Basic Early Literacy Skills.
Qualitative Evidence
The PCSB review team observed the following in support of this goal.
The review team observed evidence that the school is using formative and
summative assessments to inform instruction. In many classrooms,
teachers used exit tickets to assess for understanding and in one classroom,
students were required to complete a graphic organizer and individually
share their completed work with the class. The teacher used the share-out
as an opportunity to ask the students probing and open-ended questions to
gauge understanding.22

6a. To create a community of professionals dedicated to personal growth through learning and the
sharing of expertise.
6b. To create a flexible school environment that supports creative student grouping, innovative use
of instructional time, and common staff planning time.
Assessment: Two Rivers PCS has met these goals. The school promotes a culture of reflection for its
students and teachers. Teachers participate in extensive professional development and are encouraged to
reflect on and improve their teaching skills.
Professional Development Plan Process
The professional development program at Two Rivers PCS fosters staff growth through its Individual
Professional Development Plan Process.23 As part of this process, each staff member meets regularly
20

See Appendix A, p. 9.
See Appendix A, p. 10.
22
See Appendix H, pp. 5-6.
23
See p. 3 of Two Rivers PCS Teacher Evaluation Plan, attached to this report as Appendix I.
21

15

with school leadership and the school principal. The school describes this process as designed to
support, encourage, and evaluate the success of teachers[as well as providing] additional guidance and
support for teachers as they progress in developing their craft.24
Professional Development
Teaching staff participates in a three-week orientation before the start of each school year. Additionally,
in at least three hours of professional development each week, including conferences, workshops,
discussion, visits to other schools, and peer support.25
Learning Labs
In its 2012-13 annual report, the school described the creation of Learning Labs, in school
opportunities for teachers to share and learn.26 During these sessions, teachers had the opportunity to
focus on their practice through shared inquiry around instructional questions around topics such as
meaningful debriefs with students and flexible grouping. The school reported that teachers opened
classrooms for observations by other teachers, joined conversations on the various topics of inquiry, and
facilitated the labs.
Staff Presentations
In 2013, Two Rivers PCS staff presented about teaching and learning at various conferences.27
Presentations included:

Data Analysis: A Habit of Mind to Transform Your School, presented at the National Charter
Schools Conference by Jessica Wodatch, Jeff Heyck-Williams, and board member Justin Jones;
Launching Student-Led Conferences, presented at Expeditionary Learning National Conference
by David Philhower and Alicia Rosenberg;
Student Led Data Talks in Conferences, presented at the DC Data Summit by Bill Day, Steven
Karig, and Alicia Rosenberg; and
Teaching and Assessing Students Ability to Create and Evaluate Representations, presented at
the National Council of Teachers of Mathematics Regional Conference by Jeff Heyck-Williams.

Qualitative Evidence
The PCSB review team observed the following in support of this goal.
The review team observed evidence of reflection, critique, and
collaboration. In many classrooms, students were observed reflecting on
how they solved a problem set. In one classroom, students were given the
opportunity to critique both their peers and the teachers work. One

24

See Appendix I, pp. 4-5.

See Appendix A, p. 11.
26
See Appendix A, p. 11.
27
See Appendix A, p. 12.
25

16

student provided a solution set to a problem and another student stated he

had the same answer but took a different path to answer the question.28

The review team observed evidence that teachers teach to the whole-child.
Teachers provided multiple opportunities for students to reflect on
assignments and provide feedback to their classmates. In one class,
students were given multiple options with respect to how they used
classroom materials, with whom they collaborated, and how they
completed assignments.

Observers saw teachers caring about and demonstrating knowledge of

students lives, such as when they discussed how their day was going, and
when a teacher asked a particular student if the student had been practicing
numbers at home with his father. Teachers used endearing phrases such as
sweetheart to talk to students, and observers saw teachers putting a
gentle hand on the shoulders of students, asking if anything was the
matter.

The school showed evidence of creating a professional community of

educators. A review team member observed, a common staff planning
time. The staff met in teams and/or small groups in the first floor common
area to discuss instructional practices.29

The review team observed evidence that the school is creating an

environment that allows for innovative use of instructional time. In most
classrooms observed, students participated in whole group instruction and
differentiated groups.

The review team observed an ELA/History combined classroom that

discussed an expeditionary learning concept. The additional professional
staff in the classroom led various student groupings. At times, the groups
were determined by students, and other times, the groups were determined
by the teacher. The teachers worked with all of the small groups.
28
29

See Appendix H, p. 6.
See Appendix H, p. 8.

17


A review team member observed a common staff planning time. The staff
met in teams and/or small groups in the first floor common area to discuss
instructional practices.30

7. To use portfolio assessment to demonstrate students knowledge, skills, and character, and as a
means of understanding curriculum and instructional practice.
Assessment: Two Rivers PCS partially met this goal. Two Rivers PCS students have completed
portfolios for the past three years, since 2011-12 (whereas the scope of this review is from 2009-10 to
2013-14). The school submitted process documents and samples of student portfolios in support of these
portfolios.
Two Rivers PCS reports that its students present portfolios of work to parents twice a year, showing
three to five pieces of work and explaining the skills, knowledge and processes needed to complete the
work.31 Portfolios are filled with examples of not just masterful work, but self-reflection by the student
on their progress and growth. 32 Seventh grade students take part in Portfolio Passage at the end of
seventh grade, presenting work to Two Rivers PCS teachers. Throughout presentations, parents and
teachers ask students questions, requiring students to discuss strengths and areas that need development.

8. To demonstrate the character values of responsibility, compassion, discipline, integrity, and

courage in the classroom, in the larger school community, and in the community-at-large.
Assessment: Two Rivers PCS has met this goal. The schools discipline rates are low, and qualitative
evidence supports the school meeting this goal.
Discipline
The following tables detail Two Rivers PCS discipline rates since 2009-10. PCSB has calculated the
charter sector averages for these data points starting in 2011-12. Green shading indicates the schools
discipline rate is below the sector average; red shading indicates that its rate is above the sector average.
Two Rivers PCSs out-of-school suspensions and expulsions have been consistently lower than the
charter school sector or close to the sector average, as detailed in the tables on the following page.
30

See Appendix H, p. 8.
See Appendix A, p. 11.
32
See Appendix A, p. 11.
31

18

Two Rivers
PCS
PK-8 Charter
Sector Rate

Two Rivers PCS

Out-of-School Suspensions
10-11
11-12
09-10
5.5%
5.1%
5.3%
(24
students)
(23
students)
(22 students)

12-13
6.6%
(33 students)

10.0%33

11.8%

Two Rivers PCS

Long-Term Suspensions (10+ Days)
09-10
10-11
11-12
0.2%
0.2%
0.0%
Two Rivers PCS
(1 student) (1 student) (0 students)
PK-8 Charter
0.9%
Sector Rate

Two Rivers
PCS
Charter
Average36

Two Rivers PCS

Expulsions
09-10
10-11
11-12
0.0%
0.7%
0.0%
(0 students) (3 students) (0 students)
-

1.0%

12-1334
0.2%
(1 student)

0.0%35

12-1
0.2%
(1 student)
0.5%

Qualitative Evidence
The PCSB review team found the following in support of this goal.
The review team observed evidence that the school demonstrates the
character values of responsibility, compassion, discipline, integrity, and
courage in the classroom, in the larger school community, and in the
community-at large. In most observed classrooms, students participated
and volunteered to assist the teacher during the lesson and during clean-up
activities. In general, students were well behaved and rarely, if at all,
required more than one warning to refocus during instructional time. 88%
of the teachers scored proficient or advanced in the area, Managing
Student Behavior, with over 40% scoring exemplary.

33

2012-13 comparison is a city rate, not a charter sector rate.

In 2012-13, PCSB defined long-term suspension as eleven or more days.
35
2012-13 comparison is a city rate, not a charter sector rate.
36
Expulsion averages are available only for the charter sector as a whole, not for specific grade bands.
34

19

In most classrooms, the rules of behavior were visible and referenced by

both students and teachers. In one classroom, rules for the students during
different learning times (e.g., reading time) were posted on the wall.37

9. To foster family and community participation.

Assessment: Two Rivers PCS has met this goal. As described below, parents participate in many
school activities, and the school has recently developed a Parent School Association. Two Rivers PCS
families participate in several events each year.
Parent and Family Events
The school involves parents by in their childrens education by regularly sharing student data with them.
They hold evening meetings to discuss the schools performance on standardized tests, and presented
data to families at Back to School Night. At this event, parents could meet with school leaders and
discuss their own childs performance.38 Parents also discuss student data during the two parent-teacher
conferences scheduled each school year.39
The school also solicits parents to volunteer in their students classes, and to attend the schools weekly
community meetings, and class field studies. Two Rivers PCS families attend the schools annual math
festival, literacy festival, Spanish night, end-of-the-year potluck, and family dance.40
Parents are also invited to attend their childs Showcase of Student Learning, where students present and
discuss their learning. The school met all early childhood targets related to parent attendance of this
Showcase.
Early Childhood Parent Involvement
Year
2010-11
2011-12
2012-13

Target
85% of parents of preschool through secondgrade children will attend the Showcase of
Student Learning.
80% of parents of pre-kindergarten-3 through
second-grade students will attend their childs
Showcase of Student Learning.
85% of parents of pre-kindergarten-3 through
second-grade students will attend their childs
Showcase of Student Learning.

Target Met?41
Yes
96% of parents attended
their childs Showcase.
Yes
95.1% of parents attended
the Showcase.
Yes
95.8% of parents attended
the Showcase.

37

See Appendix H, p. 7.
See Appendix E, p. 18.
39
See Appendix E, pp. 18-19.
40
See Appendix A, p. 5.
41
In 2010-11, all early childhood results were rounded to the nearest whole number. In 2011-12 and 2012-13, early
childhood results were rounded to the nearest tenth decimal.
38

20

Parent School Association

In 2012-13, parents and staff collaborated to establish the Parent School Association (PSA).42 The
PSAs mission is to provide a structured forum so families, in full partnership with school staff, can
cooperatively contribute their time and talent towards the ongoing success of Two Rivers.43 Parents can
participate on several PSA committees in support of the school.
Qualitative Evidence
The PCSB review team observed the following in support of this goal.
The school showed evidence of fostering family and community
participation. The school newsletter identifies opportunities for parents to
participate in school activities. Parents participated in a beautification
project aimed to clean the street located in front of the school building and
helped maintain the schools gardens. Parents planted new flowers and
pruned the flowerbeds. In addition, approximately 50 parents attended the
Two Rivers PCS student-led community meeting. Parents were observed
taking pictures of their students.44

10. To create a school that is diverse by design.

Assessment: Two Rivers PCS has met this goal. The schools student population is diverse, and
teachers and students promote a culture of diversity.
The following tables detail the schools student diversity rates.

Year
20091045
2010-11
2011-12
2012-13

Two Rivers PCS Student Diversity Rates

African- Asian/Pacific
Caucasian Hispanic
American
Islander
60%
2%
33%
5%
51.5%
57.6%
62.9%

0.0%
1.3%
0.6%

41.5%
34.5%
26.8%

5.6%
6.8%
7.9%

Other
1.5%
0.0%
1.8%

42

See Appendix A, p. 5.
See Appendix A, p. 5.
44
See Appendix H, pp. 7-8.
45
Sourced from 2009-10 annual report, in which data was rounded to the nearest whole number.
43

21

Two Rivers PCS Student Diversity Rates

English
Low
Special
Year
Language
Income
Education
Learners
200932%
<1%
13%
46
10
2010-11
26.9%
0.6%
16.1%
2011-12
30.0%
3.3%
18.3%
2012-13
39.3%
4.0%
21.4%
Qualitative Evidence
The PCSB review team observed the following in support of this goal.
The review team observed evidence that the school promotes a culture of
diversity. In several observed classrooms, teachers displayed self-portraits
of students on walls, which highlighted student-identified differences.47

11a. To engage all members of the community in continuous improvement through a system of
shared decision-making, a culture of revision, and ongoing school review.
11b. To promote inquiry and innovation in a culture of reflection, critique, revision, and
collaboration.
11c. To involve staff, students, and parents in a collaborative community of reflective learners
engaged in ongoing assessment, planning, and action to improve teaching and learning.
11d. To regularly collect and analyze data to assess progress toward a common vision, set
improvement goals, and develop a comprehensive school improvement plan.
Assessment: Two Rivers PCS has substantially met these goals. The school submitted evidence fully
supporting that its staff and teachers regularly and thoroughly collaborate and analyze data to reflect on
the performance of Two Rivers PCS and its students, and then works together to improve this
performance. The schools expeditionary learning facilitates a culture of inquiry, reflection, and
collaboration among its students. However, there is little information in the schools record regarding
parents in this process.
Two Rivers PCS leadership and staff
There is significant evidence that the schools staff meets these goals. As noted below regarding goal
twelve, the schools leadership participates in annual retreats to reflect on the schools performance and
to plan for the upcoming school year. Additionally, the school uses The New Teacher Projects
Instructional Culture Insight diagnostic tool, through which teachers complete a survey reflecting on the
46
47

Sourced from 2009-10 annual report, in which data was rounded to the nearest whole number.
See Appendix H, p. 6.

22

schools culture in several different areas including the schools common vision of great teaching,
clear expectations for effective instruction, and a commitment to developing teachers.48 The schools
leaders then review these survey results and base cultural improvements on them. Significantly, in
Spring 2014 the schools teachers reported that the schools professional development program was very
strong, with responses significantly higher than the responses across the DC sector.49 For instance, 100%
of Two Rivers PCS teachers that completed this survey agreed with the statement that [i]n the past six
months, I have learned new skills that I was able to immediately use in my own classroom.50
The school-developed model for implementing individualized learning, Data-Analysis-Strategy Loop
(DAS Loop), promotes teacher examination and reflection of student performance data to increase
individualized student learning.51 As part of the DAS Loop, during grade-level meetings teacher analyze
student work to determine the extent to which the work demonstrates understanding of the strategy and
brainstorms ways to improve their teaching.
Two Rivers PCS Students
At the student level, the schools Expeditionary Learning model (described above with goal 1)
consistently focuses students on developing inquiry and reflection skills. Additionally, students lead
their teacher-parent conferences, which allows them to analyze their performance and reflect on areas
for improvement and how their parents and teachers can better support them.
Two Rivers PCS Parents
There is limited evidence of the schools parents being involved in achieving these goals. This school
year, the school executed a learning walk for parents to observe how students participate in
expeditionary learning.52 Additionally, the school submitted two editions of its school newspaper, which
contained reflections from two parents.53
Support for these goals included in Two Rivers PCS Annual Reports
Aside from these items, Two Rivers PCS has included in its annual reports many examples of
stakeholders reflecting on and improving teaching and learning in the school, including:

In 2009-10, the school launched a task force to look at the needs of the early childhood program
and issue recommendations to improve the schools ability to analyze early childhood data;
In 2011-12, after an extensive review of the schools achievement data, the leadership team
decided to implement after-school tutoring, expand Achievement Network assessments to second
grade, and create scope and sequence tools in math and language arts, and expand summer
school.

48

The New Teachers Project webpage regarding Instructional Culture Insight. Accessed July 16, 2014. http://tntp.org/whatwe-do/policies/in-action/insight.
49
See TNTP Instructional Culture Index for Two Rivers PCS, dated May 2014, attached to this document as Appendix N.
50
See Appendix N, p. 3.
51
See Data-Analysis-Strategy Loop and the Use of Data in Professional Development, attached to this report as Appendix
O.
52
See Learning Walk flyer, attached to this report as Appendix P.
53
See Two Rivers PCS Gazette, attached to this report as Appendix Q.

23

In 2012-13, the school added lab to its schedule a flexible period at the end of the school
day used to provide intervention services and accelerated support for students54

12. To conduct an extensive annual school review.

Assessment: Two Rivers PCS met this goal. The school submitted information from school years
2009-10 to present supporting this goal.55 This documentation indicated the schools leaders attend an
annual multi-day retreat to review the schools performance from the previous year, analyze data, and
set goals for the upcoming years, among other things.
13. To develop a stable student enrollment with high rates of student retention.
Assessment: Two Rivers PCS met this goal. The school has maintained consistently high enrollment,
and has reenrolled a higher percentage of students than the charter average.
Two Rivers PCS enrollment cap is currently 750, although the capacity of its facilities is approximately
516 students. It has submitted an amendment petition to open a second campus that would eventually
serve an additional 536 students.
Two Rivers PCS Enrollment
2009-10
415
2010-11
434
2011-12
451
2012-13
502
2013-14
516
The schools reenrollment rate is higher than the sector average, with consistently large waitlists.

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

Two Rivers PCS

Reenrollment Rates

83.4%

83.1%

2010-11
2011-12
Two Rivers PCS

88.9%

2012-13
Charter Average

54

See Appendix A, p. 14.

See Appendix A, pp. 11-12. See also 2012-13 Two Rivers PCS Leadership Retreat packet, attached to this report as
Appendix M.
55

24

14. To expand access continuously to funding sources from the government, corporate, and
foundation sectors.
Assessment: Two Rivers PCS has met this goal. The school and its board of trustees raise a significant
amount of money each year to support the schools programming, and have expanded its access to
funding sources, including:

Each year the school holds an annual fundraising event, which has raised over $200,000 for its
arts program over the course of four years.
Each year, the school secured donations of $500 or more from numerous donors.
In 2009, the school was awarded a grant from the Walton Family Foundation that allowed the
school to expand its staffing and provide more services to middle school students; and
In 2011, the school was awarded a grant from the Philip L. Graham Fund, which it used to
purchase Smart Boards.

15a. To make careful financial decisions that further the mission of the school.
15b. To have a clean audit and balanced budget.
Assessment: Two Rivers PCS has met these goals. The schools strong financial position supports that
the school has met these goals. Over the past four years, the school has had operating surpluses, with a
$334,0521 surplus in FY201. The schools net asset position has been strong and has steadily
strengthened, growing from $4.22 million in FY2010 to $5.26 million in FY 2013. The school has
consistently been found to have a clean audit and balanced budget by its auditor.

16.

To participate in the larger charter school community.

Assessment: Two Rivers PCS has met this goal. Two Rivers PCS school has consistently participated
in the larger charter school community, supporting improved instructional practices for the wider DC
education community. Some examples of this participation:

56
57

In 2009-10, the school hosted numerous visitors from the charter school community, including
representatives from Friends of Choice in Urban Schools, the University of Maryland, Gallaudet
University, KIPP, and a Texas school district.56
In July 2011, Mr. Jeff Heyck-Williams, Two Rivers PCS Instructional Guide, led a two-day math
workshop for various public and public charter school educators to help participants engage in
problem-based tasks to build a greater understanding of math and to learn methods for
differentiating instruction to meet the needs of all learners.57

See Appendix E, p. 16.

See Appendix F, p.19.

25

During school year 2011-12, Two Rivers PCS Board Chair Ann Gosier presented at the National
Alliance for Public Charter Schools annual conference in Minnesota, focusing on small boards
and exploring strategies for engaging board members, including the challenges associated with
board recruitment and retention.58
In July 2012, the schools instructional guide and fifth grade teacher presented at the Third
Annual DC Data Summit about using student critique to improve communication of
mathematical thinking.59
In 2012-13, Two Rivers PCS leaders were invited to host sessions at the National Public Charter
Schools Conference, the largest annual gathering of charter school policymakers, educators, and
supporters, held in Washington, DC. Leaders presented on topics including preparation for
national assessments, analyzing student data, and problem-based tasks in math.
In 2012-13, Two Rivers PCS teachers presented at FOCUSs DC Data Summit on topics like the
schools Data Analysis Strategy Loop, analyzing student data with math models, and giving
students the opportunity to lead their own data analysis and student led conferences. 60

58

See Appendix G, p. 16.

See Appendix G, p.16.
60
See Appendix A, p.16
59

26

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.61
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. The following table details the schools
compliance in several areas reviewed by PCSB.
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

Notice and due

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

DC charter school discipline policies

must afford students due process62
and the school must distribute such
policies to students and parents.

Compliant

The SRA requires DC charter

schools to maintain the health and
safety of its students.63 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
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.

Compliant

Compliance Item

Student health and

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

61

SRA 38.1802.12(c).
See Goss v. Lopez, 419 U.S. 565 (1975).
63
SRA 38.1802.04 (c)(4)(A).
62

27

Equal employment
SRA 38-1802(5)

A DC charter schools employment

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

Compliant

Insurance
As required by the
schools charter

A DC charter school must be

adequately insured.

Compliant

A DC charter school must possess

all required local licenses.

Compliant

DC charter schools receiving Title I

funding must employ Highly
Qualified Teachers as defined by
ESEA.

Compliant

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.

Compliant

Accreditation Status
SRA 38-1802.02(16)

A DC charter school must maintain

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

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

Compliant

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. PCSB is
working with Two Rivers PCS to bring it in full compliance regarding these requirements.

28

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

Qualifying
contracts
executed by
school
3
3
6
8

Corresponding
documentation
submitted to
PCSB
3
2
5
8

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 Act64 (IDEA) and the Rehabilitation Act of
1973. The following section summarizes Two Rivers PCS special education compliance from 2010-11
to the present.
References to Special Education in School Charter
References in a schools Charter to special education must comply with special education laws.
Two Rivers PCS description of serving special education students is appropriate.
OSSE Special Education Compliance Reviews
The DC Office of the State Superintendent of Education (OSSE) monitors charter schools special
education compliance and publishes three types of reports detailing these findings: (1) Annual
Determinations; (2) On-Site Monitoring; and (3) Quarterly Findings (also called Special Conditions
Reports). OSSEs findings of Two Rivers PCS special education compliance are summarized below.
Annual Determinations
As required by a federal regulation, OSSE annually analyzes each LEAs compliance with 20 special
education compliance indicators, and publishes these findings in an Annual Determination report.65 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 Two Rivers PCS was 95% compliant with special education requirements,
with OSSE noting that the school Meets Requirement in fulfilling all applicable federal and local

64
65

20 USC 1413(a)(5).
As required by federal regulation 34 CFR 300.600(c).

29

special education regulations.66 In 2010, OSSE found that Two Rivers PCS was 73% compliant, and
again designating the school as Need[ing] Assistance with special education compliance.67
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. At
the time, if a school was less than 95% compliant with a student-level indicator, it was required to
implement corrections and report these corrections to OSSE (beginning in 2013, LEAs are responsible
for being 100% compliant with student-level indicators and LEA-level indicators on On-Site Monitoring
Reports). 68
In 2011, OSSE published an on-site Compliance Monitoring Report of Two Rivers PCS based on the
schools performance in 2010-2011.69 The school was required to implement corrections in the
following areas. OSSE has since verified that Two Rivers PCS has implemented corrections for all
identified student level findings.

Student-Level Compliance
Number of
indicators where
Compliance Area
correction was
required

LEA-Level Compliance
Compliance Area

Number of
indicators where
correction was
required

IEP Development

12 out of 12

Dispute Resolution

1 out of 1

Least Restrictive
Environment

0 out of 3

Access to
Instructional
Materials

0 out of 1

Discipline

2 out of 2

Data Verification

6 out of 7

Fiscal Requirements

0 out of 14

Total

25 out of 32

Total

0 out of 16

66

See FFY 2011 IDEA Part B LEA Performance Determination, attached to this report as Appendix J. OSSE assigns to each
LEA one of the following Determination Level: (1) meets requirements; (2) needs assistance; (3) needs intervention; or (4)
needs substantial intervention.
67
See FFY 2010 IDEA Part B LEA Performance Determination, attached to this report as Appendix K.
68
If the school was found to be less than 100% compliant with a student-level indicator that could not be cured retroactively,
OSSE would identify the point of noncompliance as an LEA-level violation.
69
See 2011-12 On-Site Monitoring Report Attachments, attached to this report as Appendix L.

30

Special Conditions Quarterly Reports

OSSE submits quarterly reports to the U.S. Department of Educations Office of Special Education
Programs detailing District of Columbia LEAs compliance in three areas: (1) Initial and Reevaluation
Timelines; (2) Early Childhood Transition Timelines; and (3) Secondary Transition Requirements.
Two Rivers PCS does not have any recent findings in these areas.
Blackman Jones Implementation Review
With compliance requirements pursuant to the Individuals with Disabilities Education Act (IDEA) and
the 2006 Blackman Jones Consent Decree, OSSE manages and oversees the Blackman Jones database
that tracks each LEAs timely implementation of Hearing Officer Determinations (HODs) and
Settlement Agreements (SAs).
As of May 2014, the Blackman Jones Database shows Two Rivers PCS has no HODs or SAs.

31

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 nonadherence to generally accepted accounting principles;

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

In the following section, PCSB has analyzed Two Rivers PCS financial record in these areas. Over the
past four years, the school exhibited a history of strong financial performance. The school has no pattern
of fiscal mismanagement and no pattern of nonadherence to GAAP.
Adherence to Accounting Principles and Fiscal Mismanagement
Audits of Two Rivers PCS federal funds establish that the school adhered to GAAP. The school had
unqualified opinions on its financial statements, with no material weaknesses70 or significant
deficiencies71 identified in the schools past four audits. The school also had unqualified opinion in its
single audits72 with no material weakness or significant deficiency identified in the past four audits.
Economic Viability
Two Rivers PCS is economically viable based on the schools financial performance, sustainability,
liquidity, and debt burden, as described below.73
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
schools financial performance is its earnings before depreciation (EBAD)74, a financial performance
measure that eliminates the effects of financing and accounting decisions.
Two Rivers PCSs financial performance according to these two indicators has been consistent with four
consecutive operating surpluses since FY2010 with the most recent one totaling $334,051 in FY2013.
70

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.
71
A significant deficiency is identified 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.
72
Per the federal Single Audit Act of 1984, as amended by the Single Audit Act Amendments of 1996, 72 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).
73
Two Rivers PCS financial ratios are based on the audited reports between FY2010 and FY2013.
74
EBAD is the change in net assets plus amortization and depreciation.

32

The school experienced a similar trend with its earnings before depreciation in the past four years, with
the most recent EBAD being $873,089 in FY2013.
Fiscal Period
Operating
Result
EBAD

2010

2011

2012

2013

$177,356

$269,114

$435,705

$334,051

$177,356

$716,713

$893,833

$873,089

Expenditures
Two Rivers PCS spending decisions, illustrated in the graph below, are aligned with PCSBs financial
metrics for general education public charter schools. 75
Two Rivers PCS:
Expenditures as % of Revenues (FY2010 - FY2013 averages)
Personnel
expenses
Direct student
costs
59%

0%

20%

7%

40%

60%

17%

80%

13%

100%

Occupany
expenses
Office and
General
expenses

Sustainability
A schools net assets76 and primary reserve ratio demonstrate its sustainability.77 PCSB recommends that
schools accrue net asset reserves equal to three to six months of operating expenditures and PCSB would
be concerned with net assets reserves below zero. Over the past four years, Two Rivers PCSs net asset
position has been strong and has steadily strengthened. The schools net asset position grew from $4.22
million in FY2010 to $5.26 million in FY2013. The schools FY2013 primary reserve ratio was strong at
0.60, meaning that its net asset reserves equal 60% of its annual expenditures. The table below details
the schools net assets and primary reserve ratios over the past four years.
75

Note that the percentage does not equal 100% because expenditures exceeded revenues on average.
Net Assets equals total assets minus total liabilities.
77
Primary Reserve Ratio equals total net assets divided by total annual expenses.
76

33

Fiscal Period

2010

2011

2012

2013

Net Assets

$4,222,365

$4,491,479

$4,927,184

$5,261,236

Primary
Reserve Ratio

0.64

0.62

0.63

0.60

Liquidity
Two indicators of a schools short-term economic viability are its current ratio78 and its days of cash on
hand.79 A current ratio greater than one indicates a schools ability to satisfy its immediate financial
obligations. Two Rivers PCSs current ratio has been greater than one over the past four years, except
for FY2012. In FY2012, the school had two outstanding loans with a total balloon payment of $13.98
million due on June 30, 2013. This resulted in the schools current liabilities being unusually high in
FY2012 and its current ratio dropping significantly in FY2012. During FY2012, the school had begun
the process of refinancing both loans and completed the process in FY2013. The schools FY2013
current ratio of 4.7 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. Two Rivers PCS days of cash on hand
has been strong over the last four years, with the schools days of cash at 205 in FY2013. 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

2.8

5.0

0.3

4.7

Day Cash on
Hand

159

144

170

205

Cash flow from operations indicates whether a school produces adequate cash flow to meet its operating
needs. Since FY2009, Two Rivers PCS has produced positive cash flow from operations in the past four
years with approximately $1.1 million in FY2013, as detailed in the below table.
Fiscal Period
Cash Flow from
Operations

2010

2011

2012

2013

$881,402

$2,683

$926,653

$1,102,197

78

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.
79
Cash on hand equals unrestricted cash and cash equivalents divided by total expenditures divided by 360 days.

34

Debt Burden
A schools debt ratio80 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. Two Rivers PCSs
debt burden has been stable over the past four years, as detailed in the table below. In 2006, the school
secured two loans to finance the purchase of its 1234 4th Street, NE building and 1227 4th Street NE
building. These loans were set to mature with balloon payments on June 30, 2013. The school paid the
outstanding amount of the loans and refinanced the loan debt with bond financing of $14.5 million in
FY2013.
Fiscal Period
Debt Ratio

80

2010
0.78

2011
0.76

2012
0.74

2013
0.74

Debt ratio equals total liabilities divided by total assets.

35