ROLE OF SCHOOL BUSINESS OFFICIAL

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ROLE OF SCHOOL BUSINESS OFFICIAL

• Karen Lusk-Smith
• Mountain Brook Schools
• Mountain Brook, Alabama
• April, 2008

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DUTIES AND RESPONSIBILITIES

• Maintain an accounting system in accordance with
  GAAP and GAAS.
• Maintain a school payroll accounting system in
  accordance with applicable laws and regulations
• Prepare financial reports annually and at other
  times as requested by the local school
  superintendent, the board of education, and other
  agencies.
• Prepare reports as required by other agencies.
• Maintain an adequate system of internal controls
  including property and inventory.
• Maintain a sound system of cash management
• Maintain a sound accounting system in the
  individual local schools.
• Maintain a system of contracting and purchasing
  procedures.
• as appropriate.

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DUTIES AND RESPONSIBILITIES

• Maintain the financial operations of the child
  nutrition program and other special programs in
  accordance with state and federal requirements.
• Coordinate the preparation of the annual budget
  and any amendments as appropriate.
• Carry out all assigned responsibilities in
  accordance federal, state, and local laws and
  with applicable rules and regulations.

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ADMINISTRATOR FOR BUSINESS

• Budgeting
• Accounting and Finance
• Maintenance and Operations
• Purchasing
• Transportation
• Capital Facilities
• Strategic Plan
• Multi-Year Forecasting
• Risk Management
• CNP and Federal Programs

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BUDGETING PROCESS

• Site Based
• Justification Sheets For Specific Needs
• Proposed Budget Is Easy-To-Read, Understandable,
  and Concise Format
• Procedures and Implementation Process for How to
  Handle Reductions, When Necessary

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ACCOUNTING AND FINANCE

• Cash Management
• Investment Practices
• Recording, collecting, adjusting, and reporting
  receivables
• Employees compensation and benefits
• Analyze, evaluate, monitor and report debt
  financing alternative
• Monitors and reports grant activities

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ACCOUNTING AND FINANCE

• Internal auditing function to provide assurance
  that internal control processes are adequately
  designed and functioning effectively.
• External audit and uses the audit to improve its
  operations
• Controls for effective management of capital
  assets
• - Asset acquisition
• - Recording cost of facilities to board,
  public, or grantors

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ACCOUNTING AND FINANCE

• Established controls to ensure financial
  resources are properly managed
• Records and reports financial transactions in
  accordance with prescribed standards
• Financial reports are prepared and distributed
  timely

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MAINTENANCE AND OPERATIONS

• Guidelines and procedures are in place for daily
  operations
• Bid process is in place
• Analyze data YTD budget analysis
• Scheduled ongoing maintenance and replacement
  needs
• Certifications are kept active
• Follow FLSA for over-time

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PURCHASING

• THE DISTRICT HAS ESTABLISHED A DEFINED PURCHASING
  FUNCTION WITH CONTROLS OVER REQUSITIONING,
  AUTHORIZING, AND THE RECEIVING FUNCTIONS
• Segregation of duties
• Established controls for authorizing requisitions
• Established authorization controls to ensure that
  goods and services are fair, competitive, and
  reasonably consistent with acceptable quality
  performance
• Established controls to ensure that goods are
  received and meet quality standards

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PURCHASING

• Established controls for processing invoices to
  ensure quantities, prices, and terms coincide
  with purchase orders and receiving reports
• Established controls to ensure disbursements are
  properly authorized, documented, and recorded
• Established controls to ensure payables/encumbranc
  es (obligations) are properly authorized,
  documented, and recorded

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TRANSPORTATION

• Written guidelines are in place for policies and
  procedures
• 10-year fleet program for funding
• Regular inspections of fleet
• Certification class for employees
• Dual jobs-FLSA
• Field trips

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CAPITAL FACILITIES

• The district uses state and local educational
  facilities construction funds to meet its five
  year facilities work plan in a lawful and cost
  effective manner.
• Funds are used appropriately, lawfully, and in
  accordance with its adopted five year plan
• Incorporate factors to minimize the maintenance
  and operations requirements of the new facility

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CAPITAL FACILITIES

• Plan is based on an evaluation of the physical
  condition and ability of facilities to meet
  educational needs.
• Planning and prioritizing construction needs
• Construction program complies with current law
  and building codes
• Board ensures responsiveness to the community
  through open communication about the construction
  program and the five year facilities work plan.

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CAPITAL FACILITIES

• Facilities planning committee that includes broad
  base of school district personnel, parents,
  construction professionals, an other community
  stakeholders.
• Established authority and assigned
  responsibilities for facilities planning
• Provides budgetary plans and priorities based on
  a master plan and input from the facilities
  planning committee.
• Plan is based on demographic study and enrollment
  projections.

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STRATEGIC PLAN

• ACTION PLAN OBJECTIVE
• Goals should be result oriented goals
• Describe the end
• Describe an output
• Aims productivity improvements
• Involves projected outcomes
• Identifies improvement target
• Secure financial resources necessary to achieve
  our goals and use the best management practices
  to ensure fiscal responsibility

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STRATEGIC PLAN

• Once you have result oriented goals, explore how
  to make them SMART goals.
• SPECIFIC AND STRATEGIC
• MEASURABLE
• ATTAINABLE
• RESULT-ORIENTED
• TIMEBOUND

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MULTI-YEAR FORECASTING

• Anticipate financial impact of potential problems
• Allow for time to plan and respond and not just
  react to a budget crisis
• Show citizens, legislatures, and others that you
  are not just focused on today
• Helps Boards stay focused on the big picture from
  a financial perspective

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MULTI-YEAR FORECASTING

• Make clear what your assumptions are- many people
  are not educated about budgets
• Get people involved in the process
• Use funds, categories and programs just like your
  budgets so people are not having to relearn
• Make sure it accomplishes the reason/goal

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RISK MANAGEMENT

• The District has established procedures that
  identify various risks, and provide for a
  comprehensive approach to reducing the impact of
  losses.
• Process to set objectives for risk management
  activities, identify and evaluate risks, and
  design a comprehensive program to protect the
  District at a reasonable cost.
• Policies and procedures relating to purchasing
  and reviewing insurance coverage.
• Monitors and evaluates its self-insurance program
  to ensure its feasibility.

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CHILD NUTRITION PROGRAM

• Food Services Program has a clear direction of
  and control over resources and services
• Identify barriers to student participation in the
  school meals program and implement strategies to
  eliminate barriers.
• Cost-efficiency benchmarks based on comparable
  industry standards.
• Implement improvements to increase revenue and
  reduce costs.
• The programs budget is based on departmental
  goals, revenue, and expenditure projections.

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CHILD NUTRITION PROGRAM

• Financial control process includes an ongoing
  review of the programs financial and management
  practices.
• Account for and report meals served by category.
• Evaluate purchasing practices to decrease costs
  and increase efficiency.
• Inventory control system that is appropriate to
  the size of the school CNP

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CHILD NUTRITION PROGRAM

• System for receiving and storing food, supplies
  and equipment.
• Long-range plan for the replacement of equipment
  and facilities that includes preventive
  maintenance practices.
• Safety and environmental health practices and
  guidelines.

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FEDERAL PROGRAMS

• Understand the Federal laws and guidelines.
• Coordinate with the instructional programs
• Communicate with your coordinators

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DIFFERENT ROLES OF THE CFO

• Manage the business operations for the school
  district
• Supervise and direct departments and programs
• Coordinate with instructional programs
• Advisor to superintendent and board
• Represent the school district

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• The key to a leaders impact is sincerity.
  Before he can inspire with emotion, he must be
  swayed by it himself. Before he can move their
  tears, his own must flow. To convince them, he
  must himself believe.
• Winston Churchill

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REFERENCES

• OPPAGA and the Auditor General, Best Practices
  and Indicators
• Conzemius, Anne and ONeil, Jan (2001) Building
  Shared Responsibility for Student Learning.
• Finney,Larry(2005)Are You A Highly Effective
  School Business Official? Mobile, Alabama
  Southeastern Association of School Business
  Officials.
• Smith,David(2002)The Role of School Business
  Official. Tuscaloosa, Alabama Alabama
  Association of School Business Officials.