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