Board Member Questions Concerning School Finance

1. Board Member Questions Concerning School Finance Dr. Tony Prothro Assistant Executive Director ASBA New Board Member Conference October 15, 2012

2. What will we not cover today?

3. Everything you need to know about school finance

4. What do we hope to gain today?

5. 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…)

6. Pinnacle Question What should be the top consideration in school finance?

8. Linked to District Vision and Goals

9. Almost Pinnacle Question Is my superintendent a crook?

11. Monthly Financial Report Question When should I receive monthly financial reports in relation to approval of the financial report?

12. Early enough to generate questions and be familiar with contents

13. Monthly Financial Report Question What types of reports should I be viewing on a monthly basis?

14. Reports entailing district status in all fund areas (operational, athletics, categorical, federal programs, building programs, food service, etc…)

15. 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?

17. 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

18. Monthly Financial Report Question Should we be reviewing and approving a monthly check register?

19. Depends on the size and other demographic or particular conditions of the district (fiscal distress, etc..)

20. Monthly Financial Report Question What should I be looking for in monthly financial reports?

22. Out of the ordinary expenditures or balances Comparison of current status to previous months and years

23. Monthly Financial Report Question When is it appropriate to ask about items in the financial report? Before meeting? During meeting? After meeting?

24. All of the above is correct Try to gain as much understanding as possible before the meeting

25. Monthly Financial Report Question Should I be asking questions about detailed expenses?

26. Depends on the size and other demographic or particular conditions of the district (fiscal distress, etc..)

27. Budget Questions Should I have a general idea of the budget before I vote to approve or disapprove?

28. Only if you want to keep your job as board member! Budget meetings can be valuable

29. 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?

30. State aid printouts received in July Student count at beginning of school mayaffect budget

31. Budget Questions Do we have a budget for board professional development?

32. Professional development is needed to do your job effectively Sets the tone for staff members who have required professional development

33. 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?

34. 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

35. General Question How much should we carry over monthly and yearly in operational balances? Federal balances? Building Fund? Categorical? Others?

36. Healthy balances vary according to district characteristics Everyone is watching for excessive balances (and reporting those excessive balances)

37. 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

38. General Question Where do we get our money?

39. Local Property Taxes State Taxes and Revenue Federal Revenue Grants and other Sources

40. General Question Are we guaranteed a certain amount of money each year for our schools?

41. State foundation in most cases guarantees a certain amount of funds Be wary of sequestration and possible loss of federal funds

42. How do we know if we are in good shape financially this year and in years to come?

43. Trends in revenue, expenditures and balances State department notification of fiscal distress

44. Who is in charge of financial reports and who is accountable?

45. 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

46. Departing Question Is my superintendent a crook?

48. Serious Departure

49. “Our greatest national resource is the minds of our children.” Walt Disney