School Finance - Week 5 Assignment, Part 3: Reflection

           Overall, I found this course to be very valuable for preparation of a superintendent’s responsibilities as the financial officer of the District. My post-self-assessment indicates that I increased my level of competence, specifically in two areas: ¹⁾ obtaining and using funds from various sources, and ²⁾ developing and implementing plans for using technology and information systems to enhance efficiency and effectiveness of school district operations. Though these are two indicators in which I experienced the largest growth, I feel I have gained a higher level of competency in all indicators.

            With regard to the lectures, I found the history of school finance particularly interesting. It was an unexpected aspect of the course, and I was very pleased that it was included in the lecture. The area from which I benefitted the most was introduced in week three’s lessons and activities. There is so much to know about the M & O budget: from where the funds come and how they may be allocated. This is an area in which I had the largest gaps in my knowledge. Week three’s lecture, resources, and activities for the assignment helped to fill some of these gaps.

            The opportunity to work as a group on activities with some of my cohorts was enriching. It gave me an opportunity to gain deeper insights by incorporating their experiences, wisdom gained from their district leaders, and their unique points of view into my own. I feel I gained a much broader and deeper understanding by collaborating and sharing with my group members.

             Finally, I especially enjoyed interviewing my superintendent and assistant superintendent. They are both always very gracious with their time and with support of my endeavors. After visiting with them, I feel more enlightened with regard to their roles and responsibilities.

         

School Finance - Week 5 Assignment, Part 1: Reflection

     It is imperative that the leadership of a district model the code of ethics at all times – actions speak louder than words. It is also important to remind staff of the code of ethics standards and the consequences for violating these standards. As Dr. Arterbury stated in the video interview, it is amazing that school leaders, particularly superintendents, would participate in unethical/illegal activities (especially with school finances). They must surely know the risk of being discovered. Yet, we have seen this happen time and again. However, we must remember these incidents involve a small minority of administrators. I believe the vast majority of educators demonstrate strong moral character and are role models for the students and members of the communities in which they serve.

School Finance - Week 5 Assignment, Part 1

TAC 247.2 1. Examples of ethics violations:       Section 1       Standard 1.2. The educator shall not knowingly misappropriate, divert, or use monies, personnel, property, or equipment committed to his or her charge for personal gain or advantage.       Standard 1.3. The educator shall not submit fraudulent requests for reimbursement, expenses, or pay.      Standard 1.5. The educator shall neither accept nor offer gratuities, gifts, or favors that impair professional judgment or to obtain special advantage. This standard shall not restrict the acceptance of gifts or tokens offered and accepted openly from students, parents of students, or other persons or organizations in recognition or appreciation of service.       Section 2       Standard 2.3. The educator shall adhere to written local school board policies and state and federal laws regarding the hiring, evaluation, and dismissal of personnel.       Standard 2.6. The educator shall not use coercive means or promise of special treatment in order to influence professional decisions or colleagues. 2. Consequences of ethics violations: In regard to the three examples of ethics standards from section 1, my district’s employee handbook states: The dismissal or resignation of a certified employee will be reported to SBEC when the superintendent first learns about an alleged incident of conduct that involves . . . ·   The illegal transfer, appropriation, or expenditure of school property or funds ·   Committing a crime on school property or at a school-sponsored event According to the above stated consequences, the immediate consequence for the employee is to be reported to SBEC and law enforcement officials. The long term consequences may be dismissal (or possibly the opportunity to resign). Depending on the severity of the violation, consequences may include revocation of certificate – resulting in the loss of a career in education, as well as a possible criminal record. 3. Preventative actions: Preventative actions to ensure these standards are enforced include: Establishing a culture of high expectations Making and keeping staff aware (placed in handbook, reviewed on campus level annually, etc.) Continuous monitoring and supervising, audits, and  a check and balance system in place Several of the SBEC Superintendent Competency 1 Quality Indicators apply to the above preventative actions: Model and promote the highest standard of conduct, ethical principles, and integrity in decision making, actions, and behaviors. Exhibit understanding and implement policies and procedures that promote district personnel compliance with The Code of Ethics and Standard Practices for Texas Educators. Monitor and address ethical issues impacting education.

School Finance - Week 4 Assignment, Part 5

I found the interview with my assistant superintendent of finance very informative. Every year I am informed of the results of the audit while at a board meeting and/or during an administrative meeting. However, I have not known how the auditor is selected, nor what the logistics of conducting the audit are. Here is what I found out:

The auditor is selected in this manner:

• A call for proposals from auditors is advertised in the local newspapers and on our website.
• The proposals are reviewed, references are called, etc. – very much like an individual applying for a job position.
• The cost of the auditor’s fees are considered in deciding who to contract – though the lowest cost is not always the best to hire.

The auditor conducts the audit in this manner:

• Typically a team of four to five auditors visit the district in the summer, for approximately a week, to conduct an interim audit.
• The team of four to five returns, for approximately a week, shortly after the close of the fiscal year to complete the details of the audit.

The auditor makes the following conclusions about the financial procedures and actions:

• The auditors check for coding errors – use of grants, federal and state funds, etc.
• They look for internal controls, such as procedures that build in redundancy to ensure appropriate actions are made with regard to revenues and expenditures.

The results of the audit are communicated in this manner:

• The auditor prepares a written report that is usually received by the district in November.
• The report is presented to the Board of Trustees for approval at the next regular board meeting.
• After board approval, the report is posted on the district’s website and in the local newspapers (legal requirement).

My assistant superintendent pointed out that they choose an auditor that is reputed to be very thorough, will point out mistakes, and/or ways in which the district can improve. He also mentioned that it is important that the auditor have a strong school finance background. There are reputable financial auditors that are experienced in business and corporate finance, but are not proficient in school finance.

School Finance - Week 4 Assignment, Part 4

My opinion about the following:

• Insights and analysis regarding the district’s total personnel salaries as a percentage of the total district budget;
• Analysis of the positive and negative impact associated with a five percent salary increase for all personnel.

      My district’s total personnel salaries is $24,798,569 – 77% of the district’s total budget. If all personnel were given a five percent increase in salary, the total personnel salaries would increase by $1,239,928.45. This would result in total personnel salaries increasing to $26,038,497.45. If all other budget figures remained the same, personnel salaries would then increase from 77% of the total budget to 80.9%.

      The obvious positive impact is that morale would increase among staff. Theoretically, increased personnel retention and hiring of higher quality personnel would result. However, our district has an excellent personnel retention rate, and it is one of the more desirable districts to be employed in the region. Historically, retention and hiring has not been a problem in our district. Also, in the current climate, with many districts declaring a reduction in force, or at least reduction by attrition, there are limited opportunities for personnel to find positions elsewhere. Consequently, our district is able to maintain their current salary schedule with minimal negative consequence to the flat salaries. Collaboratively, district leaders and stakeholders have determined that no increase in salary for this school year is the most fiscally responsible decision due to the present educational funding structure.

School Finance - Week 3 Assignment, Part 4: Comment/Reflection

This part of the assignment was humbling. Though I've participated in budget planning, this has made me realize how much I don't know with regard to the calculations for projections. The more I learn in this course, the more I realize how much I have yet to learn!

School Finance - Week 3 Assignment, Part 4

Our district has a total student population of approximately 3750 with one 4A high school campus. Our property values are healthy and have continued to increase at a normal rate for our area, even through the recent economic recession. However, only approximately 20% of our district’s tax base comes from industry. Consequently, though property values are good, our district is not a “wealthy” one.

The 2010/2011 district’s refined ADA was 3442.620 with a WADA of 4624.619. The local district property value (DPV) is $887,708, 523. Our M & O tax rate is 1.04 (down from 1.5 over the last five years), making our M & O tax collections $8,514,220.

Other funds, provided from Tier I allotments, include monies from regular education ($16,495,725), special education ($3,282,133), career and technology ($1,538,266), compensatory education ($1,326,043), bilingual education ($27,352), transportation ($391,240), and high school allotment ($301,103). The sum of our Tier I allotment funding totals $23,471,861. In addition, our Foundation School Fund adds $14,116,628 to our revenue.

Since much of the M & O funding comes from state allotments and other state funding, the funds are designated for specific use. In addition, the state regulates the percentage of revenue that must be spent on curriculum and instruction. Designated spending does not include the maintenance or construction of facilities. As a result, many of our district’s facilities have become inadequate and difficult to maintain. A bond will be required to provide the funding needed to bring those facilities up-to-date.

Though we would not be considered a “poor” district, we are certainly not a “wealthy” one. We have maintained a healthy fund balance through proactive decisions made over the past several years. We are fortunate to have leaders who have been excellent custodians of our resources. As most districts throughout the state, we have made cuts in programs and personnel. However, these cuts were made with the determination to minimize negative impact on students’ success. Also, with the exception of a few paraprofessional positions, personnel cuts were made by attrition.

School Finance - Week 2 Assignment, Part 5

Summary of Interview:

Central office administrators and staff work together to collect the necessary information to make projections for the next year’s revenue. They also guide the principals and directors in prioritizing expenditures.  Each principal, along with their site-based committee, assesses the needs of their campus. They develop a budget according to their needs assessment, which is then submitted to central office administrators for review. The district improvement committee, which includes representatives from all campuses and departments, as well as parents, community members, and other key stakeholders, discusses needs to be addressed across the district. The recommendations of the district improvement committee are submitted to central office administrators for review. After all proposals are submitted, the central office administrative team discusses all proposed expenditures with the pertinent personnel. Administrators collaborate and negotiate to prioritized district needs. The assistant superintendent, who is the financial manager of the district, recommends a budget to the superintendent. The superintendent reviews the proposed budget and may make some revisions before presenting it to the board of trustees. The role of the board is to approve (or reject) the proposed budget after they review it, determine whether it is viable, and will promote student success.

Reaction:

I enjoyed interviewing my assistant superintendent. He was very gracious with his time and information during a very busy point in the fiscal year. As I have mentioned before, I am fortunate to have been involved in different aspects of the budget process. Consequently, the timeline and personnel roles were familiar to me. However, it was wonderful hearing his point of view during this interview. The dynamic of our discussion was (of course) very different from when we are in a budget planning meeting with a committee of other individuals. I very much appreciated the opportunity to visit with him face to face about this very critical aspect of his job, which he obviously enjoys.

School Finance - Week 2 Assignment, Part 1

A goal driven budget is, simply put, is a budget that is created in response to the district’s needs assessment. The district develops its improvement plan based on the district’s needs. This includes, but is not limited to, needs for infrastructure such as buildings, utilities, and technology hardware; instructional needs such as materials, personnel, and technology software/devices; and transportation. The district’s needs should always be determined with student improvement and safety as primary purposes. The needs of the students must be based on data, facts, legal requirements, and state and federal standards.

Once a needs assessment has been thoughtfully conducted in all areas of the organization, measureable goals are developed, timelines established, as well as the manner in which the outcomes will be measured. Resources necessary to attain goals are also identified. Resources for improved instruction may include educator training opportunities, added personnel, and instructional materials. Infrastructure may include building renovation or construction, utility repairs or replacement.

The cost of improvement must be determined for each goal. This is done by assessing the costs of resources and fees necessary to attain the goals set forth in the District Improvement Plan. In order for the district to budget its resources efficiently, each department and campus must carefully research the most cost effective approach to meeting their stated goals. The superintendent is ultimately responsible for making sure the goals are aligned with the board’s and the community’s expectations, as well as state and federal standards. The superintendent is also charged with prioritizing needs when, as is most often the case, resources are limited and fall short of the cost of the proposed improvements. It is equally critical that the sources of funding are properly allocated to goals according to the legal requirements placed on specific state and federal funding.

In sum, a budget that is developed by procedures based upon a data-driven, fact-based, objective assessment of student needs, is a goal driven budget. Theoretically, following procedures of this nature will also be cost effective and purposeful. Consequently, the goal outcomes will more likely be successful while maintaining responsible spending.

I have had the opportunity to participate in developing my district's DIP, and I know procedures (as described above) are in place to provide assurance that we have a goal driven budget. Our assistant superintendent is in charge of the financial management of the district, and does an excellent job of keeping our district solvent, while assisting the leaders in maintaining high standards for our students' safety and success.

School Finance - Week 2 Assignment, Part 4

Summary:

     My school district is mid-sized with approximately 3500 students enrolled in three elementary campuses, two middle schools, and one high school. I interviewed our assistant superintendent of finance and personnel to find out more about the budgeting process. I chose to interview the assistant superintendent, rather that the superintendent, because he has by far the most responsibility in the day to day activities of the budget. However, the superintendent meets regularly with the assistant superintendent to discuss the budget, and the superintendent is always involved in decision-making.

     Our district uses the Region XIII template for developing the budget. According to the assistant superintendent, projected revenues are calculated using “best guess” estimates from our district’s own calculations (i.e. projected state revenue and tax rolls), rather than the state’s estimates. In his experience, this has proven to be a more accurate projection. Expenditure allotments are then determined according to campus and department needs assessments. In early spring semester, campuses and departments submit budget proposals to the superintendent and the assistant superintendent. They review the proposals and prioritize according to need and/or urgency. Eventually, the superintendent, assistant superintendent, directors, and principals collaborate to draft the budget for board approval.

     Though the superintendent in my district is not involved in the minutia of the budget, she is very much involved in the overarching development of the budget, as well as decision-making for expenditures that are presented throughout the year. Ultimately, it is her responsibility to maintain fiscal wellbeing. The assistant superintendent is charged with managing the budget and informing the superintendent of all important information with regard to the budget.

Reaction:

     In my opinion, and based on my first hand experience, the process that our district utilizes is effective and efficient. Though our district is not large compared to many districts in the state, it is large enough that the superintendent’s time is better spent on other matters than the day to day budget activities. The assistant superintendent has a talent for finance and is highly effective in managing the business of the organization. In addition, the campus and department leaders are involved, so it is an ongoing collaborative effort with the superintendent’s and assistant superintendent’s guidance.