The Role of the School Business Official

Lou Alaimo, Assistant Superintendent for Administration Brighton Central School District

Objective

 To get an overview of the functions and responsibilities of the school business official.

Board of Education Responsibilities

1.

2.

   Governance

Set the District

’ s Direction - drawing upon the community, the Board describes a shared vision, and established goals, standards and strategy to transform vision into reality.

Ensure Alignment - of strategy, resources, policies, programs, and processes with district goals Assess & Account for Progress - using comprehensive data, thorough deliberation, and open communication    Fiduciary Responsibility Approve a Budget Ensure the Budget is Monitored Audit Committee

Duties and Responsibilities of the School Business Official         Budget Planning and Development Budget and Cash Flow Oversight and Monitoring Developing a Long Range Financial Plan Oversight of the School Business Office Oversight of District Support Services Preparation of Reports of the Superintendent and Board of Education Preparation of Reports required by State Agencies Ensuring Financial Compliance with Professional Standards and State Requirements

Education and Finance

Finances play a large role in educating children  Every educational decision has a dollar impact and  Every dollar decision has an educational impact

Budget Planning and Development

Needs Assessed Results Evaluated Issues Identified Plans Revised /Implemented Financial Capabilities Determined Plans Designed 6

Budget Planning and Development

Benefits Equipment/ Supplies Utilities/ Tuition / Contracted BOCES Services Salaries/Wages Interfund Transfers

Object-level expenditures are allocated to the different functions 7

8

Budget Planning and Development

Summary by Function provides a macro view of spending allocations –

Community Service and Interfund Transfers General Support Instruction Employee Benefits Principle and Interest Payments Pupil Transportation

Budget Planning and Development

A successful budget (from the Business Official ’ s perspective)….

1.

2.

3.

Meets all program; operating; and, capital commitments Adequately protects against operating risks Provides for stability over next two budgets (minimally)   Minimizes reliance on one-shot revenues Prevents spikes in future expenses.

Budget Monitoring

Budget Monitoring

Developing Long-Range Financial Plans

Importance of Long-Range Financial Planning

 To determine financial position and condition. Regularly highlight long-term financial condition and issues.

 To build the case for action. Make stakeholders aware of long-term issues and increase their desire to confront them.

 To build trust with citizens. Citizens are often prepared to pay more in taxes if that is necessary to realize the future they want, but only if steps are taken to increase accountability and trust. Financial planning provides great accountability for how resources are used.

 To comply with rating agency expectations. Financial planning is described by Standard and Poor ’ s as one of the “ top 10 management characteristics of highly rated credits.

” ( Source: Government Finance Officers ’ Association )

Developing Long-Range Financial Plans

Limitations in Developing Long-Term Financial Plans Expenses:  Change in students ’  Enrollment swings needs/programming  Volatility in heath care costs  Changes in pension rates  Unplanned capital needs Revenues   Inability to accurately project State Aid/Gap Elimination Assessment Changes in PILOT revenue  Tax Cap and consequences of a defeated budget  Sustainability of fund balance and reserves

Oversight of Business Office

        Treasury Payroll Accounts Payable Accounts Receivable Others:  Grants   Secretarial Functions Security Technology  Buildings and Grounds – Community Use of Facilities Transportation Administration School Food Service – Free and Reduced Applications

Oversight of Support Services

Buildings and Grounds  Long-range capital planning    Participate in construction meetings/oversee project finances Monitor project scope Prepare cost reports

Oversight of Support Services

Transportation  Promote outstanding customer service – set tone for department, participate in refresher trainings  Consistently enforce policies and regulations  Home-to-school    Home-to-bus stop Private/parochial Day care

Oversight of Support Services

Food Services  Monitor financial accountability and participation  Long-range capital planning   Consistently enforce policies and regulations  Health code regulations  Health Hunger Free Schools Act Promote outstanding customer service

Ensuring Financial Compliance

     Prepare and execute corrective actions plans in response to independent internal and external audits.

Provide periodic updates to Audit Committee on status of corrective action plans.

Collaborate with the Internal Claims Auditor to correct procedural deficiencies noted in claim audit process.

Partner with the Board Clerk to timely respond to notices of claims, FOI requests, and records retention.

Provide Board of Education with financial reports to meet fiduciary responsibilities.

New Challenges for the Business Office

 Some of the recent changes ◦ NYS Tax Cap ◦ School Aid Caps ◦ Comptroller Audits ◦ Complying with (unfunded) Mandates - Accounting Rules Compliance (GASB)

Closing Suggestions

1.

Understand that maintaining a healthy financial position is in the best educational interest of the students.

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Recognize the importance of consistently applying policy and regulation.

3.

Trust, but verify, that the financial information presented by the Superintendent and Business Official is complete, accurate and was built with integrity.