READING AND INTERPRETING THE BOARD SECRETARY’S REPORT Beth Ann Coleman, RSBA Collingswood and Oaklyn School Districts

Objective Understand how to read the report Understand how to use it as: Planning/managerial tool Board member orientation tool Financial reporting tool- To DOE, MSRB, S&P

Board Secretary’s Report importance: Report is a reflection of Board Goals and District programs Picture of District financial health Budget status Report reflects resources- budgeted, used, pending, and available Available/unused is an opportunity for planning Use report to monitor district resources each month BA’s role as manager of resources Where do I see this information? What to do with this information?

Why? 18A:17-9 6A:23A-16.2 Report tells the user: Status of spending plan- budget How much we have paid (bills) What funds have been received and from whom Reconciled cash balances- Is Treasurer’s report current? If not current why? If not in balance why?

Managerial Tool Does my cash reconcile? Have I done a cash flow analysis? Do I have enough cash to pay the bills? What is in my Accounts Receivable balance? What is in my Liabilities balance? When to communicate a potential problem to the Superintendent/Board President. Should be reviewing- twice a month for QSAC. What happens to funds available? Monthly proofing of Board Secretary report!

Monthly Certification- BA “A district Board of Education or charter school board of Trustees shall obtain a certification from the school business administrator/board secretary each month that the total of encumbrances and expenditures for each line item account do not exceed the line item appropriation.” What happens when that happens?

Transfers! Transfers are changes to our approved spending plan (budget) Transfers are approved by the board each month Transfers occur between board meetings with approval of the superintendent. There are restrictions- 10% rule

Board Member Orientation Tool Full Disclosure!!!! Talking points and discussion with your board Understanding the finances aids in making decisions What are the rules and regulations that govern the business office and district finances( 18A:19-1,2; 6A:23A; 18A:22-8) Transparency!!

Board member Orientation cont. Board members should be reviewing details each month. Why? BOE certifies every month that there have been no “over-expenditures” and that there are sufficient funds. NJAC 6A:23A-16.10c(3) Budgetary controls.

Financial Reporting Tool CAFR County Offices MSRB S&P- Bond rating

Report sections Interim Balance Sheet Interim Statements budgeted revenue to actual and appropriations with expenditures and encumbrances to date Schedule of revenues- actual compared with estimated Statement of Appropriations- compared with Expenditures and Encumbrances.

To do Tie cash out to Treasurer’s report and bank reconciliation Tie out estimated revenues- (add in budgeted FB/excess surplus)- should agree to approved General Fund budget!! Tie out reserve balances Remember- Asset/Resources must equal Liabilities & Fund Equity!!

To do: Tie out all fund balances from audit (C-1): Reserve for encumbrances Capital reserve Maintenance reserve Excess Surplus Designated for subsequent years budget

To do: Tie out Approved Budget to district software- Original and encumbrances. Tie out appropriations in approved budget to district software- Appropriations are matched by budgeted revenue and budgeted fund balance. Always prove that your Board Secretary’s report Original budget agrees to Final DOE approved budget (from which budget presentations are made). Remember- Original budget never changes. How do I prove the numbers?

Adjusted Budget (Current+ W) = Original Budget +/- Transfers + Prior year encumbrances= Adjusted budget (Current +W). Prior year encumbrance amount- C-1

Treasurer’s report Summary of the bank reconciliations Details cash receipts and disbursements Includes all funds- 10,20, 30, 40, 60 and 90. Does not include Student Activity- however bank reconciliations must be done on these accounts!! Ending Cash Balance on the Treasurer’s report must equal Cash on the Board Secretary’s report.

What if I’m not in balance? Did a transaction post to the wrong fund? Did you add a new account? Make sure it is set up in your system to roll into the board secretary’s report Make sure everything was posted BEFORE reports were run. Did something slip in? Are deposits all recorded in the correct period?

Let’s Review Where is the Original Budget number? What should the Board Secretary’s Report Original budget equal? What documents do I need to prove my Board Secretary’s report? How do we prove (tie-out) the adjusted budget?

Any Questions? I can be reached at bcoleman@collsk12.org