ROLE OF SCHOOL BUSINESS OFFICIAL

Karen Lusk-SmithMountain Brook SchoolsMountain Brook, AlabamaApril, 2008

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.

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.

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

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

ACCOUNTING AND FINANCE Cash Management Investment Practices Recording, collecting, adjusting, and

reporting receivables Employee’s compensation and benefits Analyze, evaluate, monitor and report debt

financing alternative Monitors and reports grant activities

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

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

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

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

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/encumbrances (obligations) are properly authorized, documented, and recorded

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

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 it’s adopted five year plan

Incorporate factors to minimize the maintenance and operations requirements of the new facility

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.

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.

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

STRATEGIC PLAN

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

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

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

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.

CHILD NUTRITION PROGRAMFood 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.

CHILD NUTRITION PROGRAM Financial control process includes an

ongoing review of the program’s 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

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.

FEDERAL PROGRAMS

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

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

“The key to a leader’s 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

REFERENCES

OPPAGA and the Auditor General, Best Practices and Indicators

Conzemius, Anne and O’Neil, 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.