Transcript School Board Budget Presentation

Financial Management
Workshop
Presentation to Providence School Board
November 22, 2010
Objective of Presentation
The goal of this presentation is to provide school
board members with a better understanding of the
financial operations of the school district, in order to
assist the members in responding to the financial
challenges facing the Providence School Department.
Providence School’s Financial Management
Process
School Board Sets
Strategic Direction
Superintendent & Senior
Staff Establishes Tactics
and Budget
• Defines Department’s
• Core Values
• Strategic Goals
• Strategic Direction
• Define operational and
strategic initiatives to
achieve goals
• Develops annual
budget and financial
systems to support
operational and
strategic initiatives
Senior Staff Operate
School Department
• Manage and coordinate
plans
• Execute strategic
initiatives
• Manage Department
programs consistent
with budget and public
policies (GAAP, Audit,
City ordinances, and
others)
Operational Results and Financial Reports inform Strategic Direction
2
Section I
Finance Division
Organizational Overview
3
Overview of Finance Division
Chief Financial
Officer
Matt Clarkin
Senior Budget
Officer
Chris Petisce
Controller
Michael
D’Antuono
Grants Mgmt
Coordinator
Anthony Vescera
Secretarial
Assistant
Donna Labbe
Director of
Technology
Peter Santos
Purchasing
Supervisor
Judith Petrarca
Mail Services
Warehouse
Supervisor
VACANT
4
Finance Division - Information
• 75 Full time Employees;
• New initiatives currently underway:
•
•
•
•
•
•
50% Reduction to Warehouse Space
Continued Training on Textbook Management System (Destiny)
Energy Source/National Grid Project
Participation in “BuyBoard” – Superintendents
FICA Alternative Plans
Medicaid Reimbursement Increases
5
Finance Division – Duties and Responsibilities
• Manage the seven divisions of the Finance Department, which are
responsible for all financial operations in the district;
• Ensure that appropriate procedures are in place to meet federal, state and
local compliance regulations and School Board policies;
• Develop the district’s operating and capital budgets and ensure the fiscal
integrity of local and non-local transactions.
6
Finance Division – Duties and Responsibilities
• Assist with labor and other contract negotiations
• Collaborate with Human Resources in addressing union grievances
• Research and implement financial management best practices
• Manage system-wide information technology needs
• Manage major operational, capital and inventory assets
Medicaid Office – Duties & Responsibility
• Administer approximately 50,000 Medicaid billing transactions
annually for health-related costs associated with providing Special
Education services to students
• Services that are reimbursable are speech therapies, occupational and
physical therapies, counseling, case management, behavioral health, and
personal care that are required in a students IEP
• The district’s consultant, Public Consulting Group, Inc. (PCG), provides a
web-based service documentation tool, EasyTrac™ that special education
service providers to document the health related services
• FY2010 results were the strongest in recent history due to improved and
timely reporting.
8
Medicaid Reimbursements - FY2010 Overview
9
Medicaid Reimbursements - FY2010 Overview
Revenue Per Yr.
$3.50
$3.00
FY07
FY08
$3.35
FY06
$2.75
FY05
$2.52
FY04
$1.00
$2.52
$3.20
$1.50
$3.13
$2.00
$3.10
$2.50
Million
$0.50
$0.00
FY09
FY10
10
Controller
Controller
Michael
D’Antuono
Secretarial
Assistant
Vanthy Prek
Payroll Supervisor
Lori Lazzareschi
Payroll Clerk
Carol Russo
Moi Lee
Deborah Autieri
Donna Hurley
Ivana Macchio
Susan Sant
Evelyn Lizotte
Budget Officer
Non-Local
Kimberly Evans
Benefit Clerk
Toni Barletta
John Glascom
Fiscal Officer
John Welch
Secretary
Assistant
Augusta Arce
AR Bookkeeper
Janice Amaral
AP Accounting
Clerks
Fue Yang
Carol Sullivan
Leah Seton
Khan Seng
Marilyn Wade
Lynette Gardner
11
Controller – Duties and Responsibilities
• Ensures adequate internal controls are in place and proactively responds
and corrects internal control weaknesses
• Manages employment and post-employment benefits
• Manages the ERP System
• Prepares accurate and timely financial statements
• Assesses, designs and sets up accounting systems to ensure effective and
efficient recording of accounting transactions
• Monitors adherence to established operating procedures/internal controls
• Prepares/reviews general ledger accounts to ensure the integrity and
accuracy of accounts
• Coordinates activities of external auditors, receives timely annual audit and
uses it to improve operations
• Prepares support schedules for year-end work papers
12
Controller - Statistics
• FYE 2010
– 128,117 payroll checks generated/distributed per year (75% direct
deposit);
– 16,015 checks processed per payroll staff member;
– Payroll cycles:
o 10 month employees 21 biweekly, 26 biweekly, 42 weekly;
o 12 month employees 26 biweekly, 52 weekly.
– 1,507 former employees receiving post retirement benefits;
– 18,084 post-employment benefit checks processed;
– 13 Active and 13 Post Employment Health Insurance Packages:
– Accounts Payable volume 9,271 checks – 1,854 per AP staff.
13
Controller – Other Information
• Types of funds and their use:
– General: Unrestricted school department use;
– Non-Local: Restricted use determined by the specific regulations of
the grantor ( 80 grants/entitlements);
•
•
•
•
Direct Federal
State Direct
Federal Through State
Private/Local Grants
– Enterprise Fund: Self supporting fund
• School Nutrition – Food Service program proceeds may only be used for
food service related activities.
– Student Activity and Other Bank Accounts
Controller – New Initatives
• New Initiatives in Progress
– Implement a position control system
– Implement an absence management system
Budget Office
Senior Budget Officer
Chris Petisce
Budget Analyst
Joseph Ciotti
Secretarial
Assistant
Teresa Sant
Bookkeeper
Linda DeFeo
16
Budget Office – Duties and Responsibilities
• Lead in the planning, preparation and management of the district’s
local budget
• Create and analyze reports on budget trends, budget drivers, laws
and regulations affecting the School Department’s operating budget
• Proactively works with departmental and school staff during budget
development process and throughout year
• Establish and maintain procedures to ensure that expenditures are
not made by individual departments except as authorized in the
budget
17
Budget Office – Duties and Responsibilities
• Develop financial analysis as needed to support the overall financial
management function
• Prepares quarterly budget reports for submission to the State Office
of Municipal Affairs and materials for InSite and RIDE
• Prepares budget schedules, reports, decision items and fiscal impact
statements for proposed actions
18
Budget Office - Information
• Providence School Department budget is the largest municipal
budget in the State of Rhode Island
• The Department’s local budget, staffing, and staff salary ranges
must be approved by the Providence City Council prior to
implementation
• All purchase orders and invoices requests using local funds are
approved by the Budget Office prior to implementation
19
Grants Management
Grants Management
Coordinator
Anthony Vescera
Secretarial Assistant
Patricia Mendes
Financial
Assistant
Amy Mossman
20
Grants Management – Duties and Responsibilities
•
•
•
•
Manages grants fiscal operations
Prepares fiscal portion of all grant funding
Develops individual budgets for each approved grant award
Tracks all grant activities and issue budget summary statements as a
management tool
• Develops centralized information system for multiple programs and to
track grant status
• Maintains systems for tracking all active grants
• Coordinates with the Grant Writer & Director of Federal Programs to
prepare budgets for all grant applications
21
Grants Management - Statistics
• Department currently manages approx. 80 active grants totaling approx.
$64 million
• Approximately 85 schools (public & non public) and 20 District
departments receive grant funding that passes through the Grants Office
• All non-public schools receiving Federal Funds must be visited by
Department staff at least twice a year
• $13.1 million of Title I Funds allocated directly to schools
22
Providence Public Schools Active Grants
(2010/2011)
• Title I
– Contact is made with 90 nonpublic schools
– 29 schools have accepted
participation, of which 10 are
outside Providence
• Title II
– Contact is made with 37 non
public schools, all of which
are in Providence
– 29 of the 37 have accepted
$519,000
Title I Funding - Non-Public Schools
Outside Providence
School
Location
Barrington Christian Academy
Barrington
St. Elizabeth Ann Seton Academy
Central Falls
St. Mary-Cranston
Cranston
St. Paul School
Cranston
Sacred Heart
East Providence
St. Rocco
Johnston
St. Raphael Academy
Pawtucket
West Bay Christian Academy
Islamic School of Rhode Island
Mount St. Charles Academy
South Kingstown
West Warwick
Woonsocket
23
Grants Management - Information
Major Grant Programs
Funding Source
Title I
Title I, ARRA
Title I, SIG A - ARRA
Title II, Part A
Title III
Title IV
IDEA
IDEA, Part B - ARRA
IDEA, Part B - Preschool ARRA
Literacy
Perkins
Stabilization
Purpose
Improving the Academic Achievement of
Disadvantaged; Homeless Children & Youth
Accelerated Improvement & Academic Achievement
Intensive Support & Intervention for lowest performing
schools
Teacher Quality/Class Size
Language Acquisition
Safe & Drug Free Schools
Special Education
Special Education
Special Education
Improving Literacy Achievement
Vocational Education
Funds to Minimize Reductions in Educational Services
Providence School Department
Active Grants (2010/2011)
$4,100,000
$500,000
$20,600,000
CRP
$38,500,000
ARRA
Federal-State
Private
25
Purchasing
Purchasing Supervisor
Judith Petrarca
Clerk
VACANT
Departmental
Secretary
Linda Buehne
Buyers
Theresa Douglas
Cecilia Doctor
Marlene Mattis
Virginia Gilbody
26
Purchasing – Duties and Responsibilities
• Maintains an effective purchasing function that ensures goods and
services of acceptable quality and performance are acquired at prices
that are fair and competitive
• Ensures adherence to all purchasing regulations
• Negotiates and recommends execution of contracts for the purchase
of supplies, services and equipment
• Recommends to the CFO rules and procedures governing the
purchase of supplies, services and equipment for the Department
• Keeps informed of current developments in the field of purchasing,
prices, market conditions and new products
• Maintains a bidders’ list, vendors’ file, and such other records as are
needed for the efficient operation of the purchasing function
27
Purchasing – FY2010 Statistics

FY2010 Purchase Orders
Processed 4,011 purchase orders with
total value of $81.1 million
Amount


565 PO’s (96.4% of total) > $5,000
submitted to School Board and Board
of Contract and Supply;
Transactions per purchasing staff
member = 1,950
0-5,000
# of PO
Share
$ Amount*
Share
3,446
85.9%
2.9
3.6%
5,001-10,000
186
4.6%
1.3
1.6%
10,001-15,000
93
2.3%
1.1
1.4%
286
7.1%
75.8
93.5%
15,001+
Total
4,011
81.1
* Millions
28
Purchasing – Other Information
• Per City Charter
– All purchases $100 - $500 require 2 bids
– All purchases greater than $500 require 3 bids
– All purchases greater than $5,000 must be approved by the City
Board of Contract and Supply and are approved by the School
Board
Information Technology
Dept. Clerks
Lee Ann Claytor
Doreen DaCruz
Leatrice Higgins
Info Technology
Officer
Peter Santos
E-Mail Admin.
Cathy Sperduti
Tech Services Expeditor
Vacant
Network Faciilitator
Susana Ponte
Field Service Specialists
Mark Anderson
David Curry
John DiSano
Abayomi Elemo
Julio Estrada
Cleora Francis-O’Connor
Vinicio Vasquez
Rodney Wilson
VACANT
VACANT
Student Information
Systems
REG 2000 Team
Consultants:
Lou DiPaola
Mark Achin
Mike Izzi
Software Specialist
Efrain Osorio
Network Engineers
Pete Santos
Susana Ponte
Consultants:
Raul Samayoa
Michael Sullivan
Arthur Leheurx
Tomas Iacono
30
Information Technology - Statistics
• Total Number of Technical Requests: 1,487
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•
•
•
•
•
•
•
•
E-mails: 768
Phone Calls: 276
V-Mail: 209
Walk Ins: 44
SAF/SIRF: 190
Total Amount of Work Orders Resolved: 1162
Requests Resolved Remotely: 371
Average response time; 2 business days.
Average response time to resolution; 7 business days.
Information Technology - Statistics
• Locations Supported: 53
• Network Servers: 124 (9% Virtualized).
• Network Equipment: Over 1,200 devices.
• Network Users: Over 27,000 Accounts.
• Student Workstations: Approximately 6,500
• 1/4 have been purchased in the past 3 years.
• 5:1 (ES), 3:1 (MS) and 3:1 (HS) Ratio of student to computers.
• Applications: 200 local and networked applications.
Mail/Warehouse
Mail Services
Warehouse
Supervisor
VACANT
Non-Public
Textbook
Aris Pujols
Mailroom
Clerk
Kevin
McCormick
Secretary Assistant
L’Ryssa Brazao
Receiving
Clerk
Jason Petrarca
Driver
Lois
Michaud
School Stock
Clerks
Carlos Santana
Miles Hamerick
Donald Petrarca
Frederick Ruffin
John Benitez
Jerry Carpenter
1 Vacancy
33
Mail/Warehouse – Duties and Responsibilities
• Manage the textbook inventory system (Destiny) for public and non-public
schools
• Manage the distribution of 5,000 text books distributed to 50 non public
schools
• Prepare USPS mail & deliver inter-office & inter-departmental mail
• Receive all school department of goods
• Deliver and transfer small equipment and furniture within the school
department
• Maintain district’s warehouse and associated asset management
34
Mail/Warehouse - Information
• Processed in excess of 200,000 pieces of mail per year
• Coordinated the movement from items the closure of Perry Middle School
and Feinstein High School
• Warehouse, located at 304 Pearl Street, is currently being reduced to
15,000 square feet
35
Section II
Finance Division
FY2011 Budget
36
FY2011 Budget - Review
•
School board authorized district’s proposed budget on April 26, 2010
•
Proposed budget was $329,436,497, which was $15,890,845 (5.07% increase)
•
93.5% ($14,863,973) of this expenditure increase was due to salary and benefits
•
The proposed budget was submitted to the city with a $16.8 million budget gap,
which assumed that city and state funding would remain at FY2010 levels
37
FY2011 – Update
•
Working with the city administration, the district has revised its original budget to
bring it to balance
•
The revised budget has been submitted to the City Council’s Finance Committee
•
Expenditures have been reduced by $16.3 million in its revised budget
•
The city assumed $7.9 million of these reductions (debt service)
•
The city’s direct contribution to schools is increased by $8.3 million in FY2011
•
The FY2011 city and school budget has not been approved by the City Council
38
FY2011 - Update on Latest Proposed Budget
Budget Gap
Original Budget Gap
$16,861,025
Reduction to State Aid
8,074,822
Total
$24,935,847
Solutions:
Expenditure Changes
$16,345,720
School Revenue Increase
300,000
Direct City Aid
8,290,127
Total
$24,935,847
39
Section III
Finance Division
How Does the District Compare?
40
How Do We Compare – FY 2009 Spending
FY 2009 Per Pupil Spending
$18,732
• Providence spent $15,305 per
pupil in FY 2009 – ranking it
22nd highest
Newport
$15,939
Warwick
$15,711
West Warwick
$15,305
$14,471
State
Providence
$14,212
$13,991
East Providence
North Providence
$13,261
$12,362
Woonsocket
Cranston
$11,999
Pawtucket
• Rhode Island school districts
spent slightly more than $2.1
billion in FY 2009 – at a per pupil
cost of $14,471
• Providence’s per pupil spending
was less than 5.0% higher than
the State average
41
How Do We Compare – FY 2011 Teacher Salaries
$74,722
• Rhode Island districts paid an
average of $70,862 in salaries per
teacher in FY 2011 (10th step)
Warwick
$73,479
Newport
$71,409
Cranston
$70,862
State
$70,310
Pawtucket
$70,042
Woonsocket
$69,970
West Warwick
$69,190
North Providence
$69,064
Providence
East Providence
$65,562
FY 2011 Teacher Salaries
10th Step
• Providence paid $69,064, which
ranked the district 10th highest in
the State
• Providence’s 10th step teacher
salary is 2.5% above the State
average
42
How Do We Compare – FY 2009 Allocation of
Elementary and Middle School Expenditures
FY 2009 Elementary
Expenditures by Function
FY 2009 Middle School
Expenditures by Function
Providence
Providence
State
60.7%
57.5%
State
60.4%
53.9%
20.1%18.5%
23.3%
18.5%
19.1%
16.0%
18.0%
15.8%
4.9% 5.2%
3.2% 4.8%
Instruction
Instuctional
Support
Operations
Leadership
Instruction
Instuctional
Support
Operations
Leadership
43
How Do We Compare – FY 2009 Allocation of
High School Expenditures
FY 2009 High School
Expenditures by Function
Providence
State
60.6%
56.6%
24.4%
19.6%
13.1%
14.3%
5.9%
Instruction
Instuctional Support
Operations
5.4%
Leadership
44
Section IV
Finance Division
School Board Questions
45