The Role of the School Business Official

Lou Alaimo, Assistant Superintendent for AdministrationBrighton Central School District

Objective

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

1. 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

2. Fiduciary Responsibility Approve a Budget Ensure the Budget is Monitored Audit Committee

Board of EducationResponsibilities

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 Planningand Development

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Budget Planningand Development

Object-level expenditures are allocated to the different functions

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Budget Planningand Development

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Budget Planningand Development

A successful budget (from the Business Official’s perspective)….1.Meets all program; operating; and, capital commitments2.Adequately protects against operating risks3.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’ needs/programmingEnrollment swingsVolatility in heath care costsChanges in pension ratesUnplanned capital needs

RevenuesInability to accurately project State Aid/Gap Elimination AssessmentChanges in PILOT revenueTax Cap and consequences of a defeated budgetSustainability 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 GroundsLong-range capital planningParticipate in construction meetings/oversee project financesMonitor project scope Prepare cost reports

Oversight of Support Services

TransportationPromote outstanding customer service – set tone for department, participate in refresher trainingsConsistently enforce policies and regulations

Home-to-school Home-to-bus stop Private/parochial Day care

Oversight of Support Services

Food ServicesMonitor financial accountability and participationLong-range capital planningConsistently 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.

Some of the recent changes

◦ NYS Tax Cap

◦ School Aid Caps

◦ Comptroller Audits

◦ Complying with (unfunded) Mandates

- Accounting Rules Compliance (GASB)

New Challenges for the Business Office

Closing Suggestions

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

2. 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.