Central Business Office

1. Central Business Office Benefits of Use & Comparative Costs January 9, 2013

2. Who Are We? Your Back Office! CBO allows participating districts to share professional office staff, equipment, and other resources in order to maximize efficiency of use and minimize costly duplication at the local level. Established in the early 90’s with three districts and two staff, housed at S-E. Currently we support 13 districts with 18 staff from our offices in the SSC.

3. District Services

4. Payroll: CBO vs Commercial vendors Do you get what you pay for? Fortunately, yes! • Paychex • No Fed./NYS tax pmts. • No verification of hours • No checking of rates • No checking of codes • 941/NYS quarterlies cost extra • Garnishments cost extra • W-2’s cost extra • Complete Payroll Processing • Fed./NYS tax pmts. cost extra • Voided checks cost extra • Add-on checks cost extra • No verification of hours • No checking of rates • No checking of codes • W-2’s cost extra

5. Is there cost savings if you don’t get what you need? Recoding of labor costs Annual calculation of new rates/salaries Prorated salary calculations (staff leaving/starting mid-yr.) Proration of health/dental insurance Calculation of retro payments Encumbering payroll Pennies Remaining & Deductions Reports in FM Special year-end payrolls • Labor Reporting (monthly & quarterly) • Disability Reporting • Retirement Reporting • Civil Service Reporting • New Hire report each payroll • TRS membership verification • SSN verification • Interface with IRS, DoL, NYS Dept. of Taxation • Balloon payment calculations • Summer & Special payrolls (coaching, stipends, contractual pmts.)

6. A/P: Benefit from best practices • Established procedures lead to enhanced turn around time • Designated backups ensure consistency during staff absences • Efficiency through use of technology • Multi-level staff oversight for quality control • Ongoing staff training • We “steal from the best and leave the rest”

7. Value-added A/P: It’s about more than just a warrant Printed, stuffed, and mailed w/supporting docs Date stamping of invoices when received and paid P.O.’s printed and faxed/mailed Confirmation of bid pricing Contacting vendors for invoicing errors (shipping charges, sales tax, incorrect item/quantity, etc.) -1099’s printed & mailed; file submitted to IRS Vendor name changes & W-9 file maintenance Booking of accruals for outstanding liabilities Archival of current & prior year records Online sales tax reporting forms

8. Claims Auditing: “Apples to Apples?” The Differences • 36 audit points vs how many? • Senior Acct. Clk. vs LTA, Aide, hotel bookkeeper, payroll svc., etc. • Trained by School Dist. Internal Auditing Alliance • Identified backups to cover for absences • Board report format endorsed by SDIAA

9. CBO Services: More Than Meets The Eye • System Administration • User resets, additions, inactivation, permission updates • Rolling over of fiscal year • General Ledger mapping and ST-3 annual SAMS upload • Tax table updates and other software revisions applied • Audit readiness • Completion of ST-3 & Supplemental Schedules • Monthly check-points for financials reported to Board • Yearend closing, audit preparation, and hosting on-site • Revenue preservation • Categorical Aid review and advisement • Monitoring Federal grant expenditures prior to due date • Federal/NYS breakfast & lunch claims tracked vs. payment rec’d. • Filing of FS-25’s monthly and FS-10F’s annually (short and long forms)

10. The Costs Of Being Cost Effective • Overtime, part-time help, support staff • - we plan for the unexpected so you don’t have to • Employee benefits (health, dental, ERS) • - your current and future liabilities transfer to us • Equipment repair and replacement • - shared ownership reduces long-term costs for everyone • Office supplies • - reduced inventories at discount pricing • Hiring, training, supervision, evaluation • - it just gets done, no worries

11. District X: $19.7M budget