ROLE OF SCHOOL BUSINESS OFFICIAL

1. ROLE OF SCHOOL BUSINESS OFFICIAL Karen Lusk-Smith Mountain Brook Schools Mountain Brook, Alabama April, 2008

2. 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.

3. 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.

4. 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

5. 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

6. 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

7. 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 • - Recordingcost of facilities to board, public, or grantors

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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.

15. 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.

16. 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

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

18. 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

19. 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

20. 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.

21. CHILD NUTRITION PROGRAM Food 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.

22. 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

23. 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.

24. FEDERAL PROGRAMS • Understand the Federal laws and guidelines. • Coordinate with the instructional programs • Communicate with your coordinators

25. 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

26. “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

27. 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 BusinessOfficial. Tuscaloosa, Alabama: Alabama Association of School Business Officials.