Transcript The County Board Member And County Board’s

WVSBA Orientation ’14
Waterfront Place Hotel
Morgantown, WV
June 24, 2014
J. P. Mowery, CPA
Treasurer- Pendleton County Schools
David McClure
Treasurer- Greenbrier County Schools
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Balanced Budget?
Wisely Managing Resources?
Planning for the Future?
Statutory Component?
» 1. Liable to be required to give account, as of one's
actions or of the discharge of a duty or trust.
» 2. Involving personal accountability or ability to act
without guidance or superior authority
» 3. Able to be trusted or depended upon; reliable.
» 4. Based on or characterized by good judgment or
sound thinking
» 5. Having the means to pay debts or fulfill
obligations.
» A county board of education and a county
superintendent shall comply with the
instructions of the state board of school finance
and shall perform the duties required of them
in accordance with the provisions of this article.
» 18-4-10
» The county superintendent shall:
(1) Act as the chief executive officer of the
county board….. and, under the direction of the
state board, execute all its education policies.
» 18-9-6
» The treasurer is the fiscal officer of the board,
or an employee commonly designated as the
person in charge of the financial affairs of the
county board.
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Board of Education
Superintendent – Administrative Degree
Treasurer – Business Degree; CPA
Other Stakeholders – Other Administrators,
Employees, Public
» What is a budget?
» A document with numbers prepared by school
board treasurer?
» It is a necessary tool to guide the school system.
» It is not just an annual event.
» WV Code 18-9b-5
» The board of finance shall formulate and
prescribe a uniform system of school district
budgeting for the use of all county school
districts…
» Budgeting is the accepted method for
governments to allocate scarce resources to
demanded services. As a result, it is a powerful
tool and one of the most important
governmental processes…As the focal point for
key resource decisions, the budget process can
help governments make better financial and
program decisions, improve operations, and
enhance relations with citizens and
stakeholders. -- National Advisory Council on State and Local
Budgeting -
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Planning
Public Involvement
Legal – The legal basis for spending public funds
Control – Monitoring
Evaluation/Accountability
» To translate the school district’s educational
priorities into program and financial terms—
within available fiscal resources and legal
constraints.
» Budget planning is a deliberate action.
» It should provide a perspective on what has
been done, what is now being done and what
should be done in relationship to available
resources.
» Completion of the budget document does not
terminate the planning process. Constant
monitoring and updating is necessary.
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Goals, Vision, Mission
Needs Identified
Needs versus Wants
Programs
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Programs
Revenues (available resources)
Expenditures
Trends -- Present, Past, Future
» Local
» State
» Federal
Local Tax Sources
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Regular Levy
Excess Levy
Other Levies
Local Share
Other
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Legislature sets regular levy rates
Statutory Requirements/Timelines
Local Share – Requirements
Excess Levy
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Approximately 43 out of 55 Counties
Communicate Needs
It Can Not be Driven by the Board
Members or by Administration
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9% Kept for Local Needs
SB 541
Competition for Funds
Assessors’ Role
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Example – State Funding Formula (Step 10)
indicates $10,000,000 to fund school system.
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Local taxes for education are $2,000,000
9% X $2,000,000 = $180,000
$10,000,000 - $1,820,000 = $8,180,000 state
funding
School System Receives $2,000,000 local taxes,
$8,180,000 state funding and receives a total of
$10,180,000.
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State Tax Sources
 State Aid – Driven by Enrollment
 State Grants
 Special Education
 Alternative Education
 – School Building Authority
 – Technology Allocations
 -- Other
Federal Tax Sources
Programs
» Special Education
» Title 1, Title 2
» Child Nutrition
» E-Rate
» Other
» Enrollment is the engine that drives state
funding.
» Trends, Projections…
» 1st Month Enrollment (Mid September)
» 2nd Month Enrollment (Mid October) -Snapshot
» Personnel
 80 to 90 Percent of Expenditures
 Think Through Personnel Actions Carefully
 Superintendent Makes Recommendations
 Annual Expense
» Personnel
» Operations
 Utilities, Textbooks, Supplies, Equipment,
Maintenance, Capital Improvements,
Transportation
» Fixed
» Variable
» Generated by the WVDE Office of School
Finance
» Preliminary Usually Available in December
» Very Important
» State Funding Formula
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Step 1 – Allowance for Professional Educators
Step 2 – Allowance for Service Personnel
Step 3 – Allowance for Fixed Costs
Step 4 – Allowance for Transportation
» Step 5 – Allowance for Professional Student
Support Personnel
» Step 6a – Allowance for Other Current Expense
» Step 6b – Allowance for Professional Personnel
Substitute Costs
» Step 6c – Allowance for Service Personnel
Substitute Costs
» Step 6d – Allowance for Faculty Senates
» Step 7(a) – Allowance for Improvement of
Instructional Programs
» Step 7b – Allowance for 21st Century
Technology Systems – WVDE Office of
Technology
» Step 7c – Allowance for Advanced Placement
Programs
» Step 8 -- Total Basic Program Allowance
» Step 9 – Local Share – Subtract 90% (91%) of
Local Property Tax Levy
» Be Aware of Assessed Valuation Requirements
» Step 10 – Basic State Allowance for County
Boards
» Necessary Throughout the Year
» Circumstances Change
» Ask Questions
» Funds expended only for purposes which raised
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Unlawful expenditures by local fiscal body
-- A local fiscal body shall not expend money
or incur obligations:
 In an unauthorized manner;
 For an unauthorized purpose;
 In excess of the amount allocated to the fund in
the levy order;
 In excess of the funds available for current
expenses.
** A local fiscal body or its duly authorized
officials shall not be penalized for a casual
deficit which does not exceed its approved
levy estimate by more than three percent,
provided such casual deficit be satisfied in the
levy estimate for the succeeding fiscal year..
Provided, however, That in calculating a deficit
for purposes of this section, account shall not
be taken of any amount for which the local
fiscal body may be liable for the unfunded
actuarial accrued liability of the West Virginia
Retiree Health Benefit Trust (RHBT) Fund or
any amount allocated to the local fiscal body
as an employer annual required contribution
that exceeds the minimum annual employer
payment component of the contribution
(q) "Casual deficit" means a deficit of not more
than three percent of the approved levy
estimate or a deficit that is nonrecurring from
year to year.
Fund Balance Handout
State Board of Education
Office of Education Performance Audits
» Whenever a county board has more than a
casual deficit, as defined in section one, article
one of this chapter, the county board shall
submit a plan to the state board specifying the
county board's strategy for eliminating the
casual deficit. The state board either shall
approve or reject the plan.
» Whenever non-approval status is given to a
school system, the state board shall declare a
state of emergency in the school system and
shall appoint a team of improvement
consultants to make recommendations within
sixty days of appointment for correcting the
emergency.
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Personal liability of official participating in
unlawful expenditure
A person who in his official capacity
negligently participates in the violation of
either section twenty-five or section twentysix of this article shall be personally liable,
jointly and severally, for the amount illegally
expended.
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Recovery of unlawful expenditure from
participating official by action; costs
A person who in his official capacity negligently
participates in an illegal expenditure may be
proceeded against for the recovery of the
amount illegally expended. The political
subdivision concerned, a taxpayer of the
subdivision, the state tax commissioner or a
person prejudiced may bring the proceeding.
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Criminal liability of official violating provisions
of article; proceeding for removal.
A person who in his official capacity willfully
violates the provisions of this article shall be
guilty of a misdemeanor, and, upon
conviction, shall be fined not more than five
hundred dollars, or confined in jail not more
than one year.
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Certain county officials may not have a
financial interest in any amount in a public
contract over which their public position gives
them voice, influence or control.
Hardship waivers “may” be granted.
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Criminal liability of official violating provisions
of article; proceeding for removal.
A person who in his official capacity willfully
violates the provisions of this article shall be
guilty of a misdemeanor, and, upon
conviction, shall be fined not more than five
hundred dollars, or confined in jail not more
than one year.
» Monitoring the financial condition of a school
system is a year-round process.
» Reports at Board Meetings
» Reports at LSIC/Faculty Meetings
» Media Outlets
» Public Involvement
» Financial/Budget Updates at Each Board
Meeting.
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Treasurer’s Report
Statement of Cash Flows
Budget to Actual Comparative Data
Trends
Ask Questions
» Financial/Budget Updates at Each Board
Meeting.
 Approval of the Bills
» Reduce Expenditures
˃ Reduce Personnel Over The Formula
+ Including Professional Over 200 Days, Supplemental Pay,
etc.
˃ Reduce Operating Expenditures – Energy Savings, Supplies, etc.
» Increase Revenue
˃ Excess Levy,
˃ Other?
» Communicate Clearly
» Surplus/Deficit
» Annual Financial Statements -- WV Code 18-9b9; 18-9-3a – Due 90 Days After the June 30
Year-End
» Audit -- WV Code 18-9b-13; 6-9-7 – Due by
March 31 of the Following Year
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Know Your Numbers
Analyze Needs Versus Wants
Learn From the Past
Look Ahead -- Trends
» Fiscal Conservatism
» Communicate
» Students – It’s Why We Are Here
» Financial management of the school
˃ Ensure compliance with manual and local board
policies
˃ Maintain internal control structure
˃ Communicate expectations
˃ Safeguard public assets (cash and capital assets)
˃ Provide full accounting to the staff, to the business
office, and to the public
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WVDE-OSF
» Liaison with school support organizations
˃ Ensure all organizations that intend to raise monies in
the name of the school are approved by the board
˃ Approve all fund raisers
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WVDE-OSF
» Insist that accounting procedures be followed:
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Receipts issued at the time monies change hands
POs issued prior to purchases being made
Monthly bank statements open by you personally
Proper accounting maintained for all fund raising
activities
» Ensure that fiscal activities are monitored and
reviewed periodically
» Be actively involved in the financial management
of the school
WVDE-OSF
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» State Board Policy 1224.1
» Applies to every public school in WV,
including multi-county vocational centers
» Most recent update of the manual was
effective on August 13, 2012
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WVDE-OSF
» Most common area for financial irregularities
» Receipt and disbursement procedures apply
» Remit funds collected to school on a frequent
basis
» Prepare profit/loss statement for each fundraising activity (must be signed by both the
preparer and the principal)
» Fundraising activities must be covered by liability
insurance
WVDE-OSF
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» School boards are legal entities created by statutory
authority and may exercise only the powers designated
by those statutes
» Schools are not legal entities – may only expend quasipublic funds (boards cannot distribute public funds to the
schools for expenditure)
» All contracts must be signed by the board, or the
superintendent, if designated by the board
» Appendix C provides a list of expenditures specifically
authorized or unauthorized by the State Attorney
General opinions or State Superintendent of Schools
interpretations
WVDE-OSF
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» All moneys collected by a school are
considered to be quasi-public funds and are
to be expended for the benefit of the
students at the school
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WVDE-OSF
» Purchase of food and drink for meetings
» Purchase of awards for staff
˃ Allowed only if part of a recognition program pursuant to
W. Va. Code §18-5-13
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WVDE-OSF
» Procedures for the operation of school
support organizations to be established by
board policy
» At a minimum, each organization:
˃ Must be approved by the board in advance
˃ Must advise the principal of each fund-raiser that
the organization intends to conduct
˃ Must provide an annual financial statement to the
principal
WVDE-OSF
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 Each school support organization:
 Must have its own FEIN and business registration
certificate
 May not use the school’s FEIN
 Must be officially organized with a a set of
published by-laws
 Must prepare and make available written minutes
of each meeting
 Must maintain a transaction journal of all receipts
and disbursements
 Must establish proper accounting procedures
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WVDE-OSF
» If an organization does not wish to obtain its
own FEIN, must deposit funds in the school’s
bank account (Cannot deposit funds in a
bank account under an individual’s social
security number)
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WVDE-OSF
» Boards have the authority to examine the
financial records of all school support
organizations, including the operation of
concession stands, fund raisers and gate
collections
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WVDE-OSF
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WVDE-OSF