board member questions concerning school finance dr. tony prothro assistant executive director asba...
TRANSCRIPT
Board Member Questions Concerning School Finance
Dr. Tony Prothro
Assistant Executive Director
ASBANew Board Member Conference October 15, 2012
What will we not cover today?
Everything you need to know about school finance
What do we hope to gain today?
A beginning understanding of the role of board members in school finance and the questions to consider.
**** Answers to questions may vary greatly according to characteristics of district (size, location, demographics, etc…)
Pinnacle Question
What should be the top consideration in school finance?
Linked to District Vision and Goals
Almost Pinnacle Question
Is my superintendent a crook?
Monthly Financial Report Question
When should I receive monthly financial reports in relation to approval of the financial report?
Early enough to generate questions and be familiar with contents
Monthly Financial Report Question
What types of reports should I be viewing on a monthly basis?
Reports entailing district status in all fund areas
(operational, athletics, categorical, federal programs, building programs, food service, etc…)
Monthly Financial Report Question
What should be the format of the reports? Do we have the authority to require certain types of reports or to have the reports in a certain format?
Boards have the authority to request various reports help them to gain understanding of the district status
Always compare APSCN report with district created reports
Monthly Financial Report Question
Should we be reviewing and approving a monthly check register?
Depends on the size and other demographic or particular conditions of the district (fiscal distress, etc..)
Monthly Financial Report Question
What should I be looking for in monthly financial reports?
Out of the ordinary expenditures or balances
Comparison of current status to previous months and years
Monthly Financial Report Question
When is it appropriate to ask about items in the financial report?
Before meeting? During meeting? After meeting?
All of the above is correct
Try to gain as much understanding as possible before the meeting
Monthly Financial Report Question
Should I be asking questions about detailed expenses?
Depends on the size and other demographic or particular conditions of the district (fiscal distress, etc..)
Budget Questions
Should I have a general idea of the budget before I vote to approve or disapprove?
Only if you want to keep your job as board member!
Budget meetings can be valuable
Budget Questions
We approve our budget in September – three months into the fiscal year. Why can’t we approve the budget in May or June before the fiscal year begins?
State aid printouts received in July
Student count at beginning of school may affect budget
Budget Questions
Do we have a budget for board professional development?
Professional development is needed to do your job effectively
Sets the tone for staff members who have required professional development
General Question
Should I ask for individual extra reports concerning the budget or monthly financials? Should there be a limit on the number of extra reports?
Ask for reports that will help you to become a better steward of district finances
Be aware that 5 to 7 board members with excessive reporting requirements may impede business office operations
General Question
How much should we carry over monthly and yearly in operational balances? Federal balances? Building Fund? Categorical? Others?
Healthy balances vary according to district characteristics
Everyone is watching for excessive balances (and reporting those excessive balances)
Act 1220
Act 1220 of 2011, Ann. Code 6-20-2305• Legislature watching district
balances• Greatly expanded options for use of
NSLA funds• Tied to “what is good for students”• Act in attendee packet
General Question
Where do we get our money?
Local Property Taxes
State Taxes and Revenue
Federal Revenue
Grants and other Sources
General Question
Are we guaranteed a certain amount of money each year for our schools?
State foundation in most cases guarantees a certain amount of funds
Be wary of sequestration and possible loss of federal funds
How do we know if we are in good shape financially this year and in years to come?
Trends in revenue, expenditures and balances
State department notification of fiscal distress
Who is in charge of financial reports and who is accountable?
Superintendent is in charge of generation of financial reports according to board requests – but everyone can lose job or position if district is taken over by state
Departing Question
Is my superintendent a crook?
Serious Departure
“Our greatest national resource is the minds of our children.”
Walt Disney
Thank you!
Dr. Tony Prothro