SFO Certification Exam Copyright 2012 ASBO International Disclaimer ASBO Internationals certification program is governed by the Certification Commission a semiindependent certifying body of the Association of School Business Officials International ID: 669911
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Skills Refresher for ASBO International’s SFO® Certification Exam
Copyright 2012 ASBO InternationalSlide2
Disclaimer ASBO International’s certification program is governed by the Certification Commission, a semi-independent certifying body of the Association of School Business Officials International. In adherence to best practices for certifying bodies, Certification Commission volunteers and certification staff are not involved in the development of any preparatory program, and no preparatory program is endorsed by the Certification Commission nor is a prerequisite to earn the certification.
The Certification Commission and its staff are solely responsible for the policies and administration of the certification program, including application procedures and qualification requirements.
Copyright 2012 ASBO International
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SFO® Exam Content
Part 1
Manage Accounting Systems
(28%-33%)Manage Accounting Functions (67%-72%)
Part 2
Conduct Financial Planning and Analysis
(27%-32%)
Conduct Budget and Reporting Activities
(15%-20%)
Conduct Risk Management Activities
(10%-15%)
Manage School Facilities (7%-12%)Manage Information Systems (4%-6%)Manage Human Resource Functions (15%-20%)Manage Ancillary Services (7%-12%)
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Manage Accounting SystemsMarvin
DeReef
Ellen R.
SkovieraAnn Williams
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What is an Accounting System? A series of steps, either manual or automated, that records the transactions of a business, and provides the information for financial reports Expense Revenue
Debit
Credit
Debit CreditCopyright 2012 ASBO International
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Typical Accounting FlowJournalize the business event (accounting transaction) in a book of original entry (a special or general journal)Post the business event from the journal to a subsidiary ledgerPost the total from the journal to the General Ledger
Summarize the business events by preparing a trial balance
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Automated Systems3 steps: Record Transaction Update Master Data Generate reports (and support queries)Password control is essential
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Online Communications TechnologyCommunication networks range from those designed to link a few computers, to the internet which links most of the world’s computers togetherClient/server: the physical and logical division between user-oriented allocation programs that are run at the client (user) level and the shared data that must be available through the server (the central server that handles centrally shared activities)
Copyright 2012 ASBO International
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Online Communications TechnologyLAN (Local-area network): links several different local user machines with printers, databases, and shared devicesWAN (Wide-area network): links distributed users and local networks into an integrated communications networkWeb browsers: software designed to allow users to easily view various documents and data sources available on the Internet
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Online Communications TechnologyIntranet: mini internal equivalent to the Internet, links an organization’s internal documents and databases that are accessible via Web browsers or internally developed softwareExtranet: expanding access to a company’s intranet to external, trusted partnersCopyright 2012 ASBO International
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Internet-based Systems (Cloud Computing)Cloud computing is a paradigm shift following the shift from mainframe to client–server in the early 1980s. Details are abstracted from the users, who no longer have need for expertise in, or control over, the technology infrastructure "in the cloud" that supports them.
Copyright 2012 ASBO International
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Continued…Slide12
Internet-based Systems (Cloud Computing)Cloud computing describes a new delivery model for IT services based on the Internet, and it typically involves over-the-Internet provision of dynamically scalable and often virtualized resources. Cloud services provide ease of access to remote computing sites provided by the Internet, web-based tools or applications that users can access and use through a web browser, as if it were a program installed locally on their own computer.
Copyright 2012 ASBO International
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Important Things to RememberSecurity: are your records housed either manually or on-line in a location that is protected from intrusion? In fire-proof cabinets, if hard to replaceBack-up: are your electronic records backed-up at least each night?
If there were an emergency, have you assigned records responsibility to anyone?Do you have Business Interruption Insurance?
Is your data encrypted when attached to an email?
Do you have “secure” thumb drives? Copyright 2012 ASBO International
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DocumentationSarbanes-Oxley Act of 2002 Section 404 requires that organizations document internal controls over their financial reporting processesThis documentation helps the organization know the flow of transactions through the accounting system, helps identify which areas have implemented internal controls, and can identify areas of control gaps that need to be addressed
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DocumentationWritten proceduresFlowcharts: Data flow diagrams, which portray business process activities , storage of data, and flows of data
Systems flowcharts present a comprehensive picture of the management operations, information systems, and process controls present in the business processes
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Fraud PreventionEspecially in periods of tight money, it is important to maintain absolute integrityEthical cultureDual controlSign offs and cross checksAudit trailsSecure passwords, encrypted mailings
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Fraud PreventionExternal audit not designed to discloseInternal audit functionMetrics to indicate anomaliesException reportsOverride authority/ sharing passwordsMultiple employees with same deposit account
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FraudThree factors are generally necessary for fraud to occur:PressureOpportunityRationalization (often referred to as the fraud triangle)
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FraudDevelop and promote a district-wide culture of honesty (tone at the top)Separation of duties and responsibilities among employeesDual controls-minimum of two people involved in all aspects of monetary responsibilitiesMonitoring controls review- spot check staff and management override controls on a periodic basis to ensure controls are working and effectiveFraud reporting process in place-internal employee, external customer tips, fraud hot line, etc.
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FraudUnderstand what can happen –common fraud schemesIdentify red flags to look forTest for the red- flag type activitiesCopyright 2012 ASBO International
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Fraud ResourcesAssociation of Certified Fraud Examiners (AFCE): www.acfe.comInstitute of Internal Auditors (IIA):
www.theiia.org
Information Systems and Control Association (ISACA):
www.isaca.orgAmerican Institute of Certified Public Accounts (AICPA): www.aicpa.org
Open Web Application Security Project (OWASP): www.
owasp
.org
Payment Card Industry – Data Security Standards(PCI DSS):
www.
pci
securitystandards.org/security_standardsSlide24
Internal Service FundsUsed when providing goods or services to other funds, departments, or agencies of the primary government on a cost-reimbursement basis. An internal service fund should be used only when the reporting government is the predominant participant in the activity. Otherwise, the activity should be reported as an enterprise fund.Copyright 2012 ASBO International
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Due to/Due fromBalance monthlyExamples:Internal services fundsField trip costsOther interfund transfersState aid “settle up”
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Surprise Quiz!If a district purchases inventory in Year 1 but charges it to expense, which of the following is the result?-The first year shows less fund balance than it should-Both the first and second year are misstatedCopyright 2012 ASBO International
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Manage Accounting FunctionsBrenda R. Burkett, CPA, SFO
ASBO Int’l Board of Directors 2011-2013
Chief Financial Officer
Norman Public Schools, Norman OKbrendab@norman.k12.ok.us
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Manage Payroll FunctionsThe greatest portion of the price of education is concentrated in the form of personnelEducation is labor intensivePersonnel costs make up 80-90% of most school budgetsCopyright 2012 ASBO International
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Personnel CostsPersonnel costs are the single most expensive (and most important) item in school budgetsAfter estimating enrollment and envisioning programs, costing out salaries is the next most important task in successfully balancing revenues and expendituresA demographer may be needed to assist with studying the population and student growth of your district
Copyright 2012 ASBO International
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Determining Staffing NeedsEnrollment drives staffingAbility to properly determine staffing needs is a function of organizing and using information about the district and its current and prospective staffProjections indicating a need for new staff require budget inputCopyright 2012 ASBO International
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Determining Staffing NeedsHiring decisions must be coordinated with the budget office, which must find money for salariesMust determine if budget constraints will allow for additional staff to be hiredIf so, consider whether the district should hire beginning teachers or whether it can afford more experienced staffCopyright 2012 ASBO International
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Data InputAs the hiring decisions are made, and the staff member’s payroll information is processed, it is critical that data be correctly entered into the payroll systemThere are many items pertaining to compensation that must be accurately keyed into the system, for a person’s pay and benefits to be correctCopyright 2012 ASBO International
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CompensationEmployee compensation includes negotiated benefits such as teacher’s retirement, defined contribution plans and various kinds of insuranceCompensation also includes employer costs for workers’ compensation coverage, unemployment insurance, and social securityCopyright 2012 ASBO International
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Pay Tables And Deduction CodesOne of the most critical functions of the payroll office is to ensure that pay tables and deduction codes are set up and entered correctly into the softwareIt doesn’t matter if you’ve entered the staff person’s correct pay step into the computer. If the pay step amount is not correct in the computer, underpays or overpays will occur.Copyright 2012 ASBO International
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Pay Tables And Deduction CodesDeduction codes and the correct percentages should be entered and double checked for accuracyRetirement payments into the Teachers Retirement System, and taxes paid to the IRS, are dependent on accurate percentages being set up in the payroll softwareCopyright 2012 ASBO International
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Benefits/Other CompensationLeave Benefits: There is often time away from the job not deducted from pay, including sick leave, bereavement leave, and personal leaveOther Comp: Direct and indirect compensation such as overtime pay, supplemental salaries, and performance pay may also occurCopyright 2012 ASBO International
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Benefits/Other CompensationLeave balances available to employees are handled either by regular accruals, or by days given on an annual basis or some other benchmark in the employment processA system must be in place for all leave requests so proper reduction of leave balances occurs, or pay docks are processed, if no leave is availableCopyright 2012 ASBO International
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Checks and BalancesPayroll oversight entails making sure that the amounts paid are correct, and that the benefit calculations are accurately figuredDeduction registers should be scrutinized for reasonablenessRandom sampling should be performed to check % calculations Copyright 2012 ASBO International
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Salary Payment OptionsThere are many different categories of employees that work in a school system, and often their start dates and contract days vary Many districts require 10 month employees receive their annualized pay over 12 months, to handle monthly insurance premiums or annuity deductions that continue on a year-round basisCopyright 2012 ASBO International
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Salary Payment OptionsSummer checks run in June (July and August checks that are for salaries to be charged in current fiscal year) will have taxes, retirement payments and other deductions withheld Payment of these deductions require close supervision to ensure paid in the right month and paid by certain deadlinesCopyright 2012 ASBO International
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Manage Accounts ReceivableThe purpose of Accounts Receivable is to track revenues that are not yet received by the DistrictProcedures should be set in place to accumulate, categorize, report and control revenues due the districtCopyright 2012 ASBO International
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Manage Accounts ReceivableProcedures and practices should remain the same across time and reports. If differences occur, they should be due to substantive differences in the events and conditions reported rather than because of arbitrary accrualsCopyright 2012 ASBO International
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Manage Accounts ReceivableThe Accounts Receivable function can provide a method for accruing revenues earned for a certain period, for consistency and comparative analysis to that same period the year before.Copyright 2012 ASBO International
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Revenue ApplicationsRevenue and Accounts Receivable applications should be designed with superior and flexible functionality to generate, maintain, inquire, collect and report on revenues earnedCopyright 2012 ASBO International
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Manage Purchasing ProcessAccountability for public money is backbone of purchasingProcedures must be in place that focus on getting the best bang for the buck with taxpayer fundsAs long as procedures are outlined and followed, then substantiation for purchasing decisions will be in place
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How Districts Procure Goods and ServicesThe District obtains quotes, at the appropriate dollar threshold, on items to be purchased and then creates purchase orders to award the contracts based on Board of Education approvalRequisition system-used to acquire goods/services by purchase order and verify budget authority
Purchase order – legal authority to spendContracts - to delineate specific terms
Districts should purchase from responsible business entities.
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Purchasing ProcessBidding Public notice normally 10 to 20 days before
All bids must be sealedAll bids must be opened during a public bid opening where the contents are announced
Bids should be awarded to the lowest responsible bidder who conforms in all material aspects to the requirements and criteria set in the invitation to bid
Request for Proposals - often used for servicesCopyright 2012 ASBO International
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Options for PurchasingQuotes from vendors State Contract pricingNational Purchasing cooperativeUS Communities
NJPA (National Joint Powers Alliance)allow participating governmental and municipal agencies to reduce the cost of purchased goods by leveraging their combined purchasing power.
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Manage Accounting Functions -continuedCopyright 2012 ASBO International49
Ann C. Williams, SFOBusiness Manager
Bloom Township HSD 206Chicago Heights, ILSlide50
AgendaCopyright 2012 ASBO International50
Manage Annual Budgets
Prepare Financial Reports
Manage Cash FlowManaging Activity AccountsGASBSlide51
Know your fundsGeneral FundsRestricted FundsenterpriseProprietary fundsCopyright 2012 ASBO International
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Manage BudgetsWhat is a budget?An educational plan that….Satisfies requirements of state, local and federal governmentsProvides both expending and taxing authority
Estimate of revenues and expendituresProvides a tool to measure fiscal performance
Attempts to accomplish the financial goals of the Board of Education and its stakeholders
It’s an estimate. Copyright 2011 ASBO International52Slide53
Manage Budgets cont’dPhilosophiesBusiness as usualZero BasedSite Based
Program BasedCombination of the above
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Manage Budgets cont’dBegin with assumptionsState and federal government budget projectionsTax cap, if applicable
Contractual obligations (collective bargaining agreements, vendor contracts, etc.)
Programmatic changesStaffing changes
Non-routine expenditures (e.g., textbooks, uniforms)Technology needsCapital projects/expenditures
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Manage Budgets, cont’dBudget revenueLocalStateFederalDifficult to forecast and budgetReview historical trends
Know the program or population being servedFederal Grants are potentially difficult to budget because of the timing of approvals
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Manage Budgets, cont’dBudget expensesReview assumptions on key budget drivers, make additional assumptions and collect other expense related information, including:Current and projected enrollmentTrend analysisCohort survivalCurrent and projected number of employees
Status of negotiationsCurrent fiscal year – year to date resultsLimitations imposed by revenue projections
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Manage Budgets, cont’dBudget expensesSalariesBenefitsPurchased ServicesSupplies & MaterialsCapital OutlayOther ObjectsOut of district tuition (e.g., special ed)
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Manage Budgets cont’dEstimating expendituresIdentify programs and functionsDetermine types and quantities of resources neededEstimate costs of each program or functionConsider the teacher contractHow much schedule movement can you anticipate?Is there a new Master’s program in town?
Copyright 2012 ASBO International
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Manage Budgets cont’dEstimating expendituresIdentify programs and functionsDetermine types and quantities of resources neededEstimate costs of each program or functionConsider the teacher contractHow much schedule movement can you anticipate?Is there a new Master’s program in town?
Copyright 2012 ASBO International
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Continuum for budget reductionObtain reduced prices for servicesIncrease productivityDefer spendingMake across the board cutsEliminate “non-essential” servicesReduce instructional positions and programsCopyright 2012 ASBO International
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Manage Budgets con
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Manage Budgets cont’dReductions through improved efficienciesEnergy conservationRisk managementPurchasingPrivatizationTraining for operations/support staffDeferral of expenditures
Use of more efficient equipmentEarly retirement plansLower salary increases
Lower cash carryover (working cash)
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Budgeting AdjustmentsBudget reductions due to program reductionsReduce instruction staffReduce course offeringsReduce support staffReduce non essential services
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Manage Budgets cont’dReductions are inevitable, but how can we increase revenues to avoid cuts?Charge for services providedFacility use by others (pool, auditorium, etc.)ParkingCharge for non academic servicesTransportation (if not mandated)Private sector support
Volunteers
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Manage Budgets cont’dThe budget is “done”, the year is almost over, what now? Compare budget to actualsAre actual expenditures within the budgeted amount?How much is left to spend?Look at encumbrancesDefined-obligations in the form of purchase orders, contracts or salary commitments chargeable to an appropriation and for which part of the appropriation is reserved
Copyright 2012 ASBO International
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Preparing Financial ReportsAccountabilityTransparencyEnvironment of trustReporting is dependant on the needs of the stakeholdersHow do you present your budget?PowerPoint presentation?Executive Summary?Detailed spreadsheet?
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Preparing Financial ReportsConsider the Budget at a Glance reportingConsider Dashboard reportsIL provides a financial profile
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Budget at a Glance Samplehttp://www.orland135.org/about/Administration.asphttp://www.orland135.org/departments/business_office/FinancialReports.asp
Copyright 2012 ASBO International
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Dashboard samplehttp://www.d13.dupage.k12.il.us/dashboard/index.htmhttp://www.d62.org/schoolboard/dashboardreports.htmlhttp://schooldashboard.org/d205/default.aspx?DashboardID=64&ParentID=39&SchoolID=11110723http://www.byron226.org/education/components/scrapbook/default.php?sectiondetailid=4577
Copyright 2012 ASBO International
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Managing Cash FlowDetermine cash on hand requirementsCash on Hand = projected estimate of the number of days a district could meet operating expenditures provided no additional revenues were received. Review historical cash flow patternsEvaluate anticipated changes in patterns (recession)Establish Board PolicyCreate plan to build fund balances over time
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Managing Cash FlowCash vs. AccrualCashRecognizes revenue when receivedRecognizes expenses when paidAccrualRecognizes revenue before it is received
Recognizes expenses when they are incurredModified accrualRecognizes revenue revenue when
it becomes available and measurable and, with a few exceptions, recognizes expenditures when liabilities are incurred.
Which method is better for your district? Why?Copyright 2012 ASBO International70Slide71
Student Activity AccountsActivity accountONLY benefit studentsOwned, operated, and managed by organizations within the student body under the guidance of a faculty memberExamples?Convenience accountFor faculty, staff, parent organizations, or similar non-student groupsMaintained by the district
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Student Activity Accounts cont’dSchool Board responsibilitiesApprove the establishment and purpose of each activity fundSet policy for student participation and adult supervision of fundsAppoint a treasurer to oversee fundsEnsure appropriate recordkeepingTreasurer responsibilities
Consistent with district funds
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Student Activity Accounts cont’dQuiz!!!Which expense is not an allowable activity account expense?Meals for students participating in an away football gameMagazines used for the benefit of the student organization
Meals for football coaches meetingAthletic tournaments outside of regular scheduled games
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Student Activity Accounts cont’dQuiz!!!Which expense is an allowable activity account expense?Meals for football coaches meetingPolo shirts with team name and sport for football coaches
Sales tax for football supplies for football studentsGifts for football coaches or adult volunteers
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GASB 54Governmental Accounting Standards BoardGASB 54 Fund Balance Reporting and Governmental Fund Type DefinitionsClarifies fund types (general, special revenue, debt service, capital projects) and their useRevises how balances are reportedNonspendable fund balanceRestricted fund balanceCommitted fund balance
Assigned fund balanceUnassigned fund balance
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Find out more about GASB at….http://www.gasb.org/st/summary/gstsm54.html
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Conduct Financial Planning and AnalysisEllen R. Skoviera
Leander ISD, Leander , TX
September 24, 2010
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Serve as School LeaderRepresent the district on financial mattersCommunityBudget“Data-driven” analytical resourceLegislature
Bond ratings
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Some Questions to ponderWhat does it cost us to reduce by one child per elementary/middle/high school? What is your overall teacher-pupil ratio? How does it compare to similar districts?How do your function costs compare to other similar/state/provincial districts?How do your budget expenditures tie to the organization’s stated mission?
Copyright 2012 ASBO International
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Leadership“You are a fund balance manager”Ready access to various data servicesAwareness of financial trends in your state, province, or region
Long term planning- multi-year projectionsWhat are the demographic trends being seen in your district, and what are the cost implications?
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LegislationHow often does the governing legislature meet?Is your state/ province financial system stable or constantly being changed? What data resources are available to you?(Good chance for a brainstorm: what are your best sources to know what to expect? Share with the group)
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Impact of Legislation/Other National Events
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How will the downgrading of municipal debt in general impact your school district’s debt ratings? What are the most important factors affecting your debt rating?Slide83
Presenting Your DistrictCopyright 2011 ASBO International
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Presenting Your DistrictCopyright 2012 ASBO International
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Presenting Your DistrictCopyright 2012 ASBO International
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Telling Your StoryBe ready with talking points at all times: necessary for community and elected representativesBe ready to provide cost data, as legislators may call on you for immediate answers when they are deliberating new laws/requirementsDemographic trendsCopyright 2012 ASBO International
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Financial Impact of Strategic Planning GoalsKnow ahead of time what a program is likely to cost: have metrics to know what Involves working closely with program developers, particularly CurriculumAn example:
Science scores need to improvePilot run, funded at $120,000 to provide regular rotation of science kits by grade level
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Example of Budget Costs for Strategic Objective: Improve Science ScoresAdded Science materials Center ManagerPurchased buildingPurchased initial start up supplies for kits, expanded each year
Courier cost was absorbed in current mail delivery modelScience scores show great improvement at all levels
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Sample Goal: Want latest technology for studentsOperational definition: “Latest” (Best? Newest?)TCO: Total cost of ownership (CoSN model)What are the direct costs of the goal?(Teacher training? Other staff to support the equipment? R and D to identify the proper technologies, space (small classrooms?), computer(s) and peripherals, supplies-more printing, for example (paper, toner), training, energy, opportunity cost—what else are we giving up?
Capital refreshment cycle
Bring Your Own Technology (BYOT)
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Develop Financial GoalsOperating cost per studentCost of instruction as a percent of dollarCost of teacher starting salaries to be highest in region
Fund balance policy, if not prescribed by lawCost of support (metrics:cost per square foot to maintain, clean, landscape)
Long-term strategies: 10 year facilities plan
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Other Financial GoalsDoes the Board wish to control its tax rate against any given benchmark?Long-term replacement plans (buses, copiers, technology refreshment, musical instruments)
Construction of facilities: cost to construct, life cycle costs, green initiatives (LEED)For each area or program, what are the costs?
For example, do you pay more for staff development, but have lower turnover as a result? It is more than just the metric
Can you point to resources in the budget that demonstrate commitment to strategic goals?Copyright 2012 ASBO International
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Evaluate Funding Options for Debt ManagementTypically, highly regulated…you need an attorney and a financial advisorBond programs require a long-term strategy
Including community involvement, education, identification of essential projects, recognition of failing existing building systems (roofs, HVAC, e.g.), Informational materials for the general community, tax election
Lease vs. Buy (consider state aid funding mechanisms)
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Funding Options for Debt ManagementThe following are various forms of securities, which may not be legal in your state or provinceGeneral Obligation BondsCIBs (Current Interest Bonds
CABs (Capital Appreciation bonds)
RANs and TANs (Revenue and Tax Anticipation Notes-not for raising capital, only for cash management)
Leasing (may or may not be legal in your state/province)Budget Notes, Public Property Finance Contractual Obligations (PPFCOs), Lease Revenue Obligations (public facility corporation is created which issues)Time Warrants
Maintenance Notes, Delinquent Tax Notes, Stadium Revenue Notes, Refunding Bonds
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Lease vs. BuyCalculate the total cost of ownershipCalculate the cost of leasingWhich is a better economic value?Which poses more risk? (for example, if you lease, what happens if your budget cannot sustain?)
NON-APPROPRIATIONS clauses-include in all contracts
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Contract Management as Financial ToolCentral review of all documents which bind the districtDoes state/province have a caveat emptor or caveat vendor philosophy? Include venue, hold-harmless restrictions, restrictive covenants
Be sure that someone does not “lease” what is actually a lease-purchase capital acquisition if your state does not permit such acquisitions
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Develop Outside Funding SourcesFinancial Advisor Grants- cost/benefit analysis (monitor cash request submissions)
DonorsFoundations (MOUs)
Fund Raising (internal controls)Wise investments
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Analyze Economic DataAnnual schedule of economic announcementsWhat is your region’s primary industry?What is housing doing in your region?
Are there any tax-credit housing developments being started?Consumer confidence
Interest rate projectionsUnemployment rate
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Economic FactorsSlower housing may lead to slower growth in enrollment (or not! More nuclear families in one domicile)Tax-credit developments may lead to higher school nutrition program eligibility (U.S.)Unemployment may key slower tax collections (what are you using for collection rate?)
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Analyze Demographic DataWhat is your cohort survival at each grade level?Are your lower grades more populous than your higher grades?
What is your free/reduced percentage over time?Are you enrolling more harder-to-educate youngsters? What impact will that have on your costs? On your general programs?
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Analyze Your Demographic DataHousing: any new starts? Foreclosures?From city planning departments: Plat approvalsInventory of homes: size in square feet, number of bedrooms, starter vs. move-up,Apartments
“Recycling” of neighborhoods (children grow up, house sells, new family with new children)
Copyright 2012 ASBO International
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Develop Multi-year ForecastUse Excel as an easy tool for thisIdentify major budget drivers: enrollment, property value, income (if part of the state aid equation)Identify major budget costs:
Personnel (staffing ratios) , Operating metrics (cost per square foot or student or ‘x’)
Other: energy, support costs, equipment refreshment
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Multi-year ForecastingImportant to understand how various components affect your state aid calculationsLook at least three years ahead on your debt rate, do you need to smooth it out? If operating rate is concern, look at combination of both tax rates (debt and operating), consider timed application of fund balance, if available
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Multi-year forecastingDevelop and share replacement schedules with Board (action, where applicable)Develop and share staffing ratios with Board(action, where applicable)
Examples: 1:22 k-4, 1: 27 at 5th
, 6 teachers to 150/team at middle school, 30 per class at high school (watch core class enrollments)
Examples: Buses, 200,000 miles or 15 years, Band Uniforms, every 8 years Copyright 2012 ASBO International
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Multi-year Forecast
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Estimate Real Property Tax RevenuesMaintain long term collection data, and couple it with economic health indicators in your areaAre there any changes to the formula that will affect your collections?If you have disabled, senior, or portability exemptions, is there any new development that might cause an increase in exemptions?
Is the Board considering any economic development strategies that will impact your collections (P.I.L.O.T agreements, for example)
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Tax CollectionsKnow the local tax office officialsHave there been any property value appraisal studies?Based on longitudinal data, estimate tax collections. Consider last three years, last five, last ten. If the economy is changing, shorten the comparison years.
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End of Financial Planning and Analysis ModuleQuestions?Copyright 2012 ASBO International
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Conduct Budgeting and Reporting Activities Conduct Budgeting and Reporting ActivitiesCopyright 2011 ASBO International
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Marvin Dereef, SFO
Executive Director of Budget Services Fulton County SchoolsAtlanta, GACopyright 2012 ASBO InternationalSlide111
Project Student Enrollment
Evaluate Instructional Program(s) Costs
Develop Annual Budgets
Manage Grant ActivitiesPrepare for Annual AuditCopyright 2012 ASBO International
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Conduct Budgeting and Reporting Activities Slide112
Project Student EnrollmentCopyright 2012 ASBO International112
Purpose
Trend line analysis
Cohort survivalSlide113
Evaluate Instructional Program(s) CostsSalary and Benefits
Cost vs. ResultsOne time vs. Continuous
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Develop Annual BudgetsPolicy
Budget ProcessApproaches to Budgeting
Revenue forecast State differences
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Manage Grant Activities
Grant SourcesMajor Federal Grants
Key termsReporting
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Prepare for Annual Audit
ChecklistInventory
Year End Closing
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Conduct Risk Management Activities: Plan, Prepare, Protect
Brian N. Moore
Supervisor, Public Safety
Red Clay Consolidated School District Wilmington, DE
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Jim Westrum
Exec. Dir. of Finance and Business
Wayzata Public Schools
Wayzata, MNSlide118
What will we cover?What is School Risk Management?How do you perform a Risk Audit?How to follow up a risk audit?How to analyze available insurance options.
Some help!
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School Risk Management for Dummies!
The process of analyzing the risks to the health and welfare of our students and staff then finding ways to effectively mitigate that risk!
The process of analyzing the risks to the stability and well being of our physical assets, our schools and finding ways to mitigate them.
Making intelligent financial decisions regarding how to best manage that risk.
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What is a risk audit?It is an exercise in history and predicting the future.A risk audit begins with a historical analysis of incidents that have occurred in your schools, including Workers Compensation Claims and Incident Reports.
What happened and when?
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Predicting the future?Perform a trend analysis!Flood Data From NOAA
Look at weather or flood predictions.Review long term community growth trends.
Review crime statistics and discuss possible future trends.
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What’s Next?Mitigation Planning
Review ways to reduce risks associated with historical or possible future threats.
Purchase products or create policies to reduce risks associated with operating a school.
NEVER STOP! The cycle continues!!!122
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Insurance ManagementOutside Insurance FirmsSelf Insurance
Review available options from commercial business insurers.
Allow them to help provide you with a risk assessment!Don’t trust the agent who tries to sell you flood insurance for your school on TOP of the Mountain!
What are the risks?What is your current Situation?
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Other Options?Insurance Pool?State Office of Insurance?Combination planning.
Legal insurance.
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Manage School FacilitiesIf you build it..They will come!Copyright 2012 ASBO International
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Brian N. Moore
Supervisor, Public Safety
Red Clay Consolidated School District,
Wilmington, DESlide126
What would school look like without walls?Copyright 2012 ASBO International
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So we know we need walls!We will review how we plan our schools.How do we maintain our schools?How do we build new schools?
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You need a plan!How many schools do you need?How many schools WILL you need?How many schools do you have?
How long will the schools that you have last?
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Did you know?
The average age of a school in the US is 42 years old!1927 new schools were opened in 2008.
2120 schools were closed!
Public school enrollment is expected to increase by 12% before 2017.Copyright 2011 ASBO International129Slide130
How do we maintain them?A strong maintenance team is necessary to extend the service life of schools.Focus on preventive maintenance, use electronic work orders.
Perform life cost analysis rather than the early savings!
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Train your teamThey must focus on good work skills.
They should have a strong sense of ownership in the facilities.They can be a key resource for any energy saving initiatives!
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Build your next school!Once you know that you need a new school.Where can you build it?How much money will it cost too build?
How will you pay for it?
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Marketing for school facilitiesUse your parents as key stakeholdersSell your School BoardSell your elected officials
Sell your voters or the public!
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Caution: Most states do not allow schools to advocate , only to inform with facts regarding school district bondsSlide134
Once you pass a bond or budget fundingFind the right architect.
Decide what construction model you would like to use: Managing Architect versus Construction Manager.
Begin planning!
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What else?Outside groups using school facilities.Recreational and sports facility management.Green cleaning initiatives.
Fixed assets.
IPM programs.
Energy purchasing and conservation programs.Life safety management programs.Copyright 2012 ASBO International
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Where can I learn more?ASBO School Facilities CommitteeNational Clearinghouse for Educational Facilities.Facility Masters Program.
Just ask me!
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Manage Information SystemsEllen R. Skoviera, RTSBA, SFOLeander ISD Leander, TX
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Assist in Developing Technology PlanWhat is the district’s Technology Vision?What is desired for children to use and to know?
Roles include automational, transformational, communications, efficiency“Mission critical”
What is mandated?
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Assist in Developing Technology PlanConsider:Infrastructure, telecommunications (e-rate)Training of staff (critical!)
Equipment standards and refreshment
Accessibility of printers to classrooms (cost factor)
Standardization of softwareDisaster and recovery (share with other schools?)Business interruption insurance
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Assist in Developing Technology PlanHigh degree of attention needs to be placed on securitySecure versus non-secure sitesMany textbook companies are offering online textbook enhancements, but the sites are not secure: FERPA and privacy concerns
National Education Technology Plan
3d2know.cosn.org/presentations/DDDottawa.ppt
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Assist in Developing Technology PlanOpen source computing vs. proprietary softwareCloud computingScope agreement (scope creep)
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CoSN Checklist for Efficient OperationsIT Asset ManagementManage software licenses repurpose minimally used computers: Some computers are used more than others. Certain software applications are no longer used, or they’re not installed on all of the systems for which they are licensed. It is prudent to make sure that computers (including servers) are located where they are needed most and licensed only for the software actually in use. An IT asset management application can monitor this use over the network, evaluating usage results over time.
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CoSN Checklist for Efficient Operations Help Desk and Centralized Support ToolsTechnical support consumes time and money when technology professionals must travel from building to building to maintain equipment, troubleshoot problems and support end users. With already stretched staffs and more staff reductions in the offing, it’s a good idea to find a way to support users more efficiently.
Automated, remote support from a centralized help desk is an answer. Centralized user support requires tools to view and control computers remotely. This approach to problem management does have some up-front costs, but it provides the opportunity for efficiencies over the longer term, while maintaining user satisfaction by effectively managing responses to support requests. A vendor-provided centralized support ROI calculator can be found on KACE's website.
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CoSN Checklist for Efficient OperationsComputer Refresh CycleDuring times of economic stress, one of the budget areas that receives scrutiny is the IT capital budget and the computers scheduled for replacement. Leasing…
Direct and Indirect Labor While looking into reducing time computer support techs spend traveling through centralized support techniques, it is also important to ask, "Who is providing direct labor services?" Direct labor includes all personnel who have as at least part of their responsibility to provide computer support or other computer services. This may include external providers, teachers, aids, school-based techs who don't report to the IT organization, as well as the computer services organization. Is your current support structure as effective as it can be? In many cases it doesn't make sense to pay teachers, who are not trained as techs and are more expensive, to provide user support services.
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CoSN Checklist for Efficient OperationsComputer, Server and Network ConsolidationServer Consolidation and server virtualization reduce complexity, OS and other software licenses, and power usage. This process involves up-front planning and some initial investment, but can result in significant savings. This topic is covered under "Other Resources" and in CoSN's Green Computing Leadership Initiative.
Networks: A district telecom system typically consists of data lines from campuses to the central office and connection to the Internet, plus internal and external voice communications and often security and clock synching networks. The external voice connections through the local telephone company can add up to a significant cost, as do Internet access lines and Internet service provider (ISP) charges. A study of VoIP costs and savings should be considered, as well as consolidation of the data networks.
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CoSN Checklist for Efficient OperationsNumber of Supported Operating Systems and ApplicationsA broad mix of desktop, laptop and server operating systems requires a broad mix of support talent and complicates system integration and network management. This is not to say there should be only one operating system. More than one client and one server operating system however, that supporting multiple OS versions also could be more costly in terms of support talent and system/network integration issues.
Printing
Printing and copying can be major expense that include hardware, ink or toner cartridges, energy and paper costs. It’s important to evaluate your current printer inventory: How many and what type of printers and copiers are connected to computers and on the network? Operational costs can be drastically reduced by replacing individual other inkjet printers in favor of strategically located print/copy centers. Implementing electronic forms for staff and school board use can also reduce the cost of printing. Some of these issues are covered in CoSN's Green Computing Leadership Initiative.
http://www.cosn.org/Initiatives/ClassroomTotalCostofOwnership/Checklist/tabid/5126/Default.aspx
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Maintain Technology and Telecommunications SystemsPlatform decisions-cost and complexityStaffing ratios for support - fixing and teaching
R&D: emerging trends and technologiesCloud computing, in-house programming, open-source
VoIP, POTS
Refreshment cycles, and how fundedE-rate decisionsSecurity policies, spam filtering, content blocking
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Maintain Technology Systems/Oversee Telecommunications SystemsCapacity should always be measured: when will you need more (ports? shelves? band width?) Conduct predictive exercisesPlanning for capacity is multi-year effort (budget and bonds)
License compliance
Acceptable use policies, employment consequences
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Manage Technology and Telecommunications SystemsStaffing: expertise and staying competitive with marketPreventive Maintenance schedules
Service Level Agreements
ITIL:Responding to growing dependence on IT, the UK Government's
Central Computer and Telecommunications Agency (CCTA) in the 1980s developed a set of recommendations. It recognized that without standard practices, government agencies and private sector contracts were independently creating their own IT management practices.The IT Infrastructure Library originated as a collection of books, each covering a specific practice within IT Service Management. ITIL was built around a process-model based view of controlling and managing operations often credited to W. Edwards Deming and his plan-do-check-act (PDCA) cycle.
http://en.wikipedia.org/wiki/Information_Technology_Infrastructure_Library
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Manage Information SystemsQuestions?
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Manage Human Resource Functions Copyright 2012 ASBO International153
Matthew J. Malinowski
Director of Business Affairs
School District of Cheltenham TownshipElkins Park, PA Slide154
Manage Hiring of Good EmployeesRecruitmentReview the necessary qualifications by appropriate personnel: HR, principals, supervisorsUtilize exit interview paperwork
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Manage Hiring of Good EmployeesVacancy NoticeInclude job description or summary job descriptionWork Schedule
Hourly rateSalary
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Manage Hiring of Good EmployeesApplicationQualificationsReference Check
Interviews
Use at least teams of two Ensure at least one individual on the team is knowledgeable of job functions
Document questions and answersEnsure questions are appropriateProhibit comments that are personal and subjective
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Manage Hiring of Good EmployeesOrientation GoalsTo Promote the new employee’s identification with the school entityTo facilitate the new employee’s successful adjustment to the entity and to the position to which he/she has been assigned
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Manage Hiring of Good EmployeesProbationary Period30 days to 1 yearFormal evaluation
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Manage Hiring of Good EmployeesTour of facilityIntroduction to staff
On-site organization structure
Reporting time/proceduresInclement weather procedures
Attendance/punctualityAbsence notificationSpecial equipment/supplies (tools, etc.)Dress
Security/ID badges
Emergency procedures
School calendar
Break times
Lunch area procedures
Parking
Telephone calls/rules
Overtime/comp. time/extra dutyStaff/faculty meetingsSick leave/other leavesJury dutySafety/accident reportingHandbook or contract distributionReview of position descriptionEvaluation form
Review and receipt of particular policies
(harassment, smoke/tobacco/drug-free workplace, workers’
compensation, evaluation, discipline, child/student abuse)
Explanation of applicable employee benefit programs
(Retirement, health and life benefits, flexible spending accounts)
Tax-sheltered annuities
Payroll dates and procedures
Probationary period
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Develop Compensation StructureCompensation ManagementGoal: Have a system of determining compensation for employees that is: Fair
UnderstandableRational
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Develop Compensation StructureCompensation ManagementInternal EquityRange of pay for positions in organization and the relative value/rate of pay assigned
External EquityRate of pay for a position as compared to the “market”
“Market” for school districts is surrounding districts
For some trades and technology other external data may be relevantCritical to attracting and retaining qualified candidatesCopyright 2012 ASBO International
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Manage Staff Development and Training ProgramsLink Training with ASBO/ Local ASBOLook for appropriate college opportunities for staff developmentBring effective Personnel through internal and external development programs
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Manage Evaluation ProcessPurpose of EvaluationFirst, it acts as the tool to evaluate administrator performance
Secondly, it provides the documentation necessary to award merit increases as a result of demonstrated performance
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Manage Personnel AdministrationPertinent RegulationsFamily and Medical Leave Act of 1993 (FMLA)
The U.S. Department of Labor’s Employment Standards Administration, Wage and Hour Division, administers and enforces the Family and Medical Leave Act (FMLA) for all private, state and local government employees, including school entities. FMLA became effective on August 5, 1993 and entitles eligible employees to take up to 12 weeks of unpaid, job-protected leave in a 12-month period for specified family and medical reasons. The employer may elect to use the calendar year, a fiscal year or a 12-month period prior to or after the commencement of leave as the 12-month period.
The law contains provisions on employer coverage, employee eligibility for the law’s benefits, entitlement to leave, maintenance of health benefits during leave, job restoration after leave, notice and certification of the need for FMLA leave and protection for employees who request or take FMLA leave. The law also requires employers to keep certain records.
School entities should adopt policies to clarify specific aspects of the law.
Consolidated Omnibus Budget Reconciliation Act (COBRA)Federal law requires that employers offer eligible employees and their dependents the opportunity for a temporary extension of health coverage called continuation coverage at group rates in certain instances, or Qualifying Events, where coverage under the plan would otherwise end.
The Health Insurance Portability and Accountability Act of 1996 (HIPPA)
HIPAA protects health insurance coverage for workers and their families when they change or lose their jobs.
http://www.hhs.gov/ocr/privacy/
Drug-Free Workplace Act of 1988
Required of any organization who receives federal funding
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Manage Personnel AdministrationOmnibus Transportation Employee Testing Act of 1991requires all school entities to establish programs and practices designed to help prevent accidents and injuries resulting from the misuse of alcohol or controlled substances by drivers of commercial vehicles subject to the commercial driver’s license (CDL) requirements
Harassment Policy
Equal Employment Opportunity Commission guidelines on discrimination because of sex define sexual harassment as any unwelcome sexual conduct that “has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile or offensive work environment.”
Americans with Disabilities Act (ADA)Activities covered under the ADA include but are not limited to walking, talking, seeing and hearing. People with a record of such impairment and those regarded as having an impairment are protected under the ADA.
Age Discrimination in Employment Act (ADEA)prohibits employment discrimination against any individual forty years of age or older.
Pregnancy Discrimination Act (PDA)
Employees who are pregnant must be treated the same as other employees with similar disabilities or limitations. An employer cannot refuse to hire a woman because she is pregnant nor may an employer terminate a woman simply because she becomes pregnant.
If an employee is temporarily unable to perform the requirements of a job due to pregnancy, the employer must treat her like any other temporarily disabled employee
State Regulations
Veterans Preference
State Certification Guidelines
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Manage Employee Benefit ProgramsThe most important and overlooked aspect of employee benefits administration is communicating the value of these benefits to staffBenefits can average 25-30% of total compensation for most entities
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How to Communicate Benefit Information Personalized statements sent periodically to each employee showing the employee’s salary and an itemized list of the benefits available to that employee and the entity’s cost to provide those benefits
Benefit booklets written so that they can be easily read and understood by the employeePeriodic meetings to review changes in coverage utilizing insurance company representatives to explain coverage, answer questions, etc.
Orientation programs for new employees
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Manage Employee Benefit ProgramsAll school administrators should have a basic understanding of the value and coverage offered through their entity’s benefit package. They should be able to direct employee inquiries to the appropriate staff person who can answer specific questions. Areas in which staff members must be knowledgeable include:
Eligibility requirements for all insurance coverageRates for all insurance coverage
Co-payment amounts, if applicable
COBRA regulationsEligibility requirements for PSERSBasic understanding of all coverage providedAmounts and procedures for calculating vacation days, sick days, personal days, etc.
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Manage Ancillary ServicesEllen R. Skoviera, RTSBA, SFOAssistant Superintendent for Business and Operations
Leander ISDLeander, TX 78641
ellen@leanderisd.org
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Manage Ancillary ServicesThere is a tendency in society to see the mission of schools as exclusively instructionalThe unfortunate outcome is other areas are ignored when they should also be valued for their role in providing equal opportunity and meaning to the social and educational mission of schools
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Transportation and Food Service ProgramsSchools would be negatively impacted without these operationsEvery child has a right to a good education without regard for socioeconomic statusEvery child should be able to get to school without hardship and attend classes free from hunger
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Transportation and Food Service ProgramsThere is no equal opportunity when educational programs are physically inaccessible or when children are underfedAll stakeholders in education should be concerned with organizing and operating efficient systems for transporting and feeding children.
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TransportationThese operations are large and complex regardless of school district sizeUrban districts use many buses to transport thousands of students over short distances
Rural districts also need many buses, despite low pupil population, to travel over countless open miles
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Transportation Actual costs may be similar, and large and small systems alike face issues of safety, insurance, and so onBillions are spent annually, making it a major industryComplex issues of liability, safety, and equal access
State and federal regulations
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Transportation FunctionNo doubt one of the most visible services in schoolsBright yellow school buses arrive in front of homes of more than half of all school children each morningAnd the bus is often the last school contact of the day
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Transportation FunctionAlso involves taking students on field trips and to athletic and academic eventsAlso assist with other services such as special education
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“When floors shine, the schools seem good”When buses are late or when problems arise, everything about schools seems suspectAs a result, transportation is one of the most important and visible non-instructional activities of schools
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Transportation Origins and PurposeTransportation and state financial support have been in existence since 1869Pupil transportation has had no choice but to grow as compulsory attendance, district consolidation, and the advent of motor vehicles have drastically affected society.
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Transportation Origins and PurposeA major role for transportation has also arisen from court-ordered desegregation plans revolving around forced busingMore recently, magnet schools and year-round schools have added to the complexity of pupil transportation
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Complexity of TransportationVariables such as population density, number of pupils to be transported, topography, road conditions, and length of routes affecting the size of buses on routesMovement of population within a community may create new transportation demands
Racial integration may require new school attendance boundaries
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Director of Transportation ServicesRequires a variety of talents and skills:
Ability to efficiently organize a large transportation fleet and to consistently demonstrate human relations skills in working with personnel problems
Skilled in decision-making to manage effectivelyKnowledge of diverse topics, including computer routing, budgeting, labor relations, inventory, drug testing, underground storage tanks, and hazardous materials
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Comprehensive Transportation ManualDocument should be open to public, and in-service should be held with transportation staff to clarify the policies of the districtSpecial emphasis must be given to driver training, pupil discipline, energy conservation, disability issues, public relations, bus routes, and bus schedules
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Transportation FundingLike other forms of state aid, transportation aid varies in amount and distribution method from state to stateFormulas include a variety of factors, such as expenditures per pupil, population density, bus capacities, matching grants, or some combination as common denominators
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Transportation FundingSome states provide a transportation allowance based on hazardous walking conditionsIn some states, transportation aid is tied to the general fund formula
One basic similarity: in most states, transportation aid almost NEVER covers the entire cost
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What other Transportation issues are relevant?Owning or ContractingComputerizing Transportation ServicesPurchasing Buses
Maintenance and Safety
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Owning or ContractingContracting avoids the cost of buying busesContracting avoids the high maintenance cost of older buses
It’s argued that contracting lowers capitalization costs, reduces personnel and administration costs, and provides greater efficiency through contractors whose sole business is transportation
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Contracting TransportationCounterarguments, however, include: how to ensure quality performance by a contractor when the district no longer controls the public relations aspect of the contractor’s behaviorthe need for insuring against liability for acts of contractors.
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District Ownership of TransportationArguments for district ownership:Provides more flexibility, provides selection, training, and supervision of transportation employees, and ensures control over changes in operational costs
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Owning or ContractingIt may be that there is no one best option for transportation, as the right choice may depend on a district’s financial position and the community’s attitude about this vital serviceCopyright 2012 ASBO International
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Computerizing Transportation ServicesEvery year more districts are using computerized routing systemsThese plans are cost-effective in that they can apply mathematical formulas for routing efficiencyAid in mapping routes, including census data, highway time delay studies, and other manual data supplied
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Computerizing Transportation ServicesSoftware is even available to preplan routes in undeveloped areas in advance of actual population movementComputerized fleet maintenance is also common. Total costs and item costs can be accounted for instantly and used to make decisions about maintenance and disposal
Geocoding, privacy issues
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Purchasing BusesLarge outlays (over $50,000 per bus, plus additional thousands for a bus with a wheelchair lift)Local districts use written specifications, usually based on state guidelines
Especially complicated because they are purchased on separate chassis and body bids, but this provides both economy and specialization that can be used by manufacturers
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Purchasing BusesLarger buses are more versatile, which in turn reduces the number of buses and staff. Smaller buses are used in sparsely inhabited areas or inner cities on crowded streets
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Maintenance and SafetyMaintenance, safety, and staff are inseparable in any discussion of transportationGood drivers cannot offset bad buses, nor can new equipment offset bad drivers.Transportation utmost duty: To ensure student safety
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Surprise Quiz!Let’s say you are a bus driver. You make your first stop, and ten children get on. At the second stop, two get off (for some permissible reason), and eight get on. At the third stop, seven students board the bus. When you get to the school, all the children disembark.Copyright 2012 ASBO International
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Surprise Quiz! (Cont’d)How old is the bus driver?Copyright 2012 ASBO International
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Food Service ProgramsLike transportation, the food service function is a key to effective and efficient operation of schoolsLess visibly related to the primary mission of schools, but provides vital support to the instructional process
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Food Service FunctionNeed to understand the following:How it operatesHow meal prices are set under federal, state, and local participation
How revenues and expenditures in food service budgets are allocated
Much more regulation on meal content
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Linking School Performance to NutritionUndernourishment due to poverty and ignorance is still sizable in today’s era of economic progressData exists that links poor school performance to nutrition The role of food service in schools has increased with time, as seen in the fact that most U.S. schools now have both breakfast and lunch programs
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Food Service FundingLong history of federal (U.S.), state, and local subsidies to supplement meal prices paid by childrenThese sources make up the revenue side of food service operations and are highly interdependent
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Federal SupportSurplus commodities began to be used in school lunch programs in 1936Not long afterward, The United States Congress enacted the National School Lunch Act authorizing grants to states to help provide food and facilities for school lunch programs
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State SupportIndividual state participation is harder to summarize because each state has been free to determine the extent of its involvement in the National School Lunch ActState funding is relatively small compared to federal spending
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Local SupportThe local contribution is defined as dealing with the leftover costs after fed/state revenues are expendedThe local role is thus one of determining how much, if any, the district wishes to further subsidize meals by shifting additional local tax revenue to food service
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Local SupportLeaving the unfunded part of meal costs to the local district creates a heavy burden for schools, in that such decisions have moral and financial implications.If the district channels all unfunded costs to families, then some children may not receive the intended benefits of food service programs.
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Local SupportIf the district subsidizes meals from tax revenues, a choice to reduce other program expenditures is often made.Costs, efficiencies, and all other aspects of operations are a function of district size and skill in directing food service operations. The number of meals and dollars becomes large very quickly.
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Relevant IssuesOften the biggest problem is rising costs associated with purchasing and preparing foods such as supply price increases, labor costs, and equipment and facilities – all of which must factor into what the district ultimately charges for meals.Copyright 2012 ASBO International
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Compliance RequirementsCompliance is a common concern whenever outside aid is provided. Assurances are directed to the federal government in return for dollars and commoditiesDistricts must assure states of compliance so the state can provide its own assurances to the fed govt.
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Federal Rules and RegsOperate a nonprofit program Only a 3 month operating balance may be kept on hand and still be nonprofitServe meals that meet nutrition requirements
- Programs can offer single menu, fast food choice menu, or a’ la carte menu
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Federal Rules and RegsPrice meals as a unitTo count as reimbursable, meals must be priced as a unit. This does not prohibit single item sales
Supply free and reduced mealsTo eligible needy children
Agree to avoid discriminationNo child may be refused because of inability to pay, race, gender, or national origin
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Federal Rules and RegsKeep accurate records of income and expendituresRecords are subject to intensive state and federal auditsComplete a formal reimbursement claim
Claims must be sent on a timely basis each month to the state
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Federal Rules and RegsDistribute applications for free and reduced mealsDistricts must actively inform each student of the program
Review and act on F&R applicationsParents or guardians must be notified regarding decisions
Develop and implement verification procedures
A method of verifying accuracy of applications must be followed212
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Federal Rules and RegsMaintain accurate participation recordsThe district must establish procedures for obtaining accurate meal countsEstablish and implement purchasing procedures
Purchasing procedures must comply with state and federal regulations
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Federal Rules and RegsUse federally donated foods or commoditiesThis includes the ability to store commodities properly without spoilageApproved programs provide meals based on daily nutritional requirements
Must provide approx 1/3 of the recommended dietary allowance (RDA)
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Meal ReimbursementsTo receive reimbursement, a lunch must contain a set of specified components and menu items, where components are:Meat or meat alternate
Vegetable and/or fruitBread or bread alternate
Milk The Goal is a balanced diet
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Food Service ManagementOptions on types of mgmt systems best suited to a district’s needs:Management companiesCentralized in-house operations
Decentralized in-house food service
Careful cost analysis necessary since each has its benefits and problems
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Management CompaniesUse of outside management companies centers around debate of whether it is more cost-effectiveThe main reason many districts have decided to contract for food service has been a benefit stemming from fiscal and managerial efficiency
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Benefits to ContractingAdministrators have more time for curriculumWage and benefit costs, disputes, and grievances have been reduced because the district no longer handles personnelMenu planning is improved by use of food professionals
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Benefits to ContractingIn-house record-keeping requirements are reducedThere is strong incentive for food service to become a profit center with high client satisfaction
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Contracting ServicesDistricts should take care to choose from a list of reputable and experienced firmsShould act from a set of bid specs to assist bidders in deciding whether to bid, as well as establishing the criteria for evaluating proposals
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In-House OperationsCentralize or de-centralize servicesOn-site food preparation vs. satelliting from central kitchens
‘Satelliting’ means delivering cooked food with finishing kitchens on-site, in contrast to on-site food prepMajor benefit is mass preparation and non-duplication of full facilities
Concern could be loss of site control and responsiveness, and over standardization
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In-House Food Services DirectorFull time director highly trained to assure the efficient and cost-effective operation. Needs skills to work closely with principals and central office, as well as supervising service workers
Must work with district budget director, and provide leadership in setting meal prices
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Wrap upAncillary services are a vital contribution to educational outcomesAlthough often lacking in glamour, they represent vast expenditure outlays and significant liability
They are interrelated parts of a complete educational system. Each piece makes a vital contribution and can’t be slighted without significant harm to children
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All One TeamInvolving support staff in the instructional program, such as voluntary mentoring, has tremendous benefit to the campus, and generally provides more fulfillment to the workers. Job satisfaction is a tremendous asset of any school.Copyright 2012 ASBO International
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Thank you!Thank you for being here today and for your personal investment in bettering the lives of those we educate and care forThank you for your personal commitment to enriching your skillsHAVE A GREAT CONFERENCE!Copyright 2012 ASBO International
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