The Role of the School Business Official

1. The Role of the School Business Official Lou Alaimo, Assistant Superintendent for AdministrationBrighton Central School District

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

3. Board of EducationResponsibilities • 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 • Fiduciary Responsibility • Approve a Budget • Ensure the Budget is Monitored • Audit Committee

4. 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

5. 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

6. Budget Planningand Development

7. Budget Planningand Development Object-level expenditures are allocated to the different functions

8. Budget Planningand Development

9. Budget Planningand Development A successful budget (from the Business Official’s perspective)…. • Meets all program; operating; and, capital commitments • Adequately protects against operating risks • Provides for stability over next two budgets (minimally) • Minimizes reliance on one-shot revenues • Prevents spikes in future expenses.

10. Budget Monitoring

11. Budget Monitoring

12. 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)

13. Developing Long-Range Financial Plans Limitations in Developing Long-Term Financial Plans Expenses: • Change in students’ needs/programming • Enrollment swings • Volatility in heath care costs • Changes in pension rates • Unplanned capital needs Revenues • Inability to accurately project State Aid/Gap Elimination Assessment • Changes in PILOT revenue • Tax Cap and consequences of a defeated budget • Sustainability of fund balance and reserves

14. 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

15. Oversight of Support Services Buildings and Grounds • Long-range capital planning • Participate in construction meetings/oversee project finances • Monitor project scope • Prepare cost reports

16. Oversight of Support Services Transportation • Promote outstanding customer service – set tone for department, participate in refresher trainings • Consistently enforce policies and regulations • Home-to-school • Home-to-bus stop • Private/parochial • Day care

17. Oversight of Support Services Food Services • Monitor financial accountability and participation • Long-range capital planning • Consistently enforce policies and regulations • Health code regulations • Health Hunger Free Schools Act • Promote outstanding customer service

18. 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.

19. New Challenges for the Business Office • Some of the recent changes • NYS Tax Cap • School Aid Caps • Comptroller Audits • Complying with (unfunded) Mandates - Accounting Rules Compliance (GASB)

20. Closing Suggestions • Understand that maintaining a healthy financial position is in the best educational interest of the students. • Recognize the importance of consistently applying policy and regulation. • Trust, but verify, that the financial information presented by the Superintendent and Business Official is complete, accurate and was built with integrity.