1. Skills Refresher for ASBO International’s SFO ® Certification Exam Copyright 2012 ASBO International

2. Disclaimer ASBO International’s certification program is governed by the Certification Commission, a semi-independent certifying body of the Association of School Business Officials International. In adherence to best practices for certifying bodies, Certification Commission volunteers and certification staff are not involved in the development of any preparatory program, and no preparatory program is endorsed by the Certification Commission nor is a prerequisite to earn the certification. The Certification Commission and its staff are solely responsible for the policies and administration of the certification program, including application procedures and qualification requirements. Copyright 2012 ASBO International 2

3. SFO ® Exam Content Part 1 Manage Accounting Systems (28%-33%) Manage Accounting Functions (67%-72%) Part 2 Conduct Financial Planning and Analysis (27%-32%) Conduct Budget and Reporting Activities (15%-20%) Conduct Risk Management Activities (10%-15%) Manage School Facilities (7%-12%) Manage Information Systems (4%-6%) Manage Human Resource Functions (15%-20%) Manage Ancillary Services (7%-12%) Copyright 2012 ASBO International 3

4. Manage Accounting Systems Karin Slater, CFO, SFO Montrose County School District Montrose, CO Dan Huenneke Director of Budget, SFO Cherry Creek School District Greenwood Village, CO Copyright 2012 ASBO International 4

5. What is an Accounting System? A series of steps, either manual or automated, that records the transactions of a business, and provides the information for financial reports AssetsLiabilities ExpenseRevenue DebitCreditDebitCredit Copyright 2012 ASBO International 5

6. Typical Accounting Flow Journalize the business event (accounting transaction) in a book of original entry (a special or general journal) Post the business event from the journal to a subsidiary ledger, if appropriate Post the total from the journal to the General Ledger Summarize the business events by preparing a trial balance Copyright 2012 ASBO International 6

7. Automated Systems 3 steps: Record Transaction Post to books of record Generate reports (and support queries) Password control is essential Copyright 2012 ASBO International 7

8. Online Communications Technology Communication networks range from those designed to link a few computers, to the internet which links most of the world’s computers together Client/server: the physical and logical division between user-oriented allocation programs that are run at the client (user) level and the shared data that must be available through the server (the central server that handles centrally shared activities) Copyright 2012 ASBO International 8

9. Online Communications Technology LAN (Local-area network): links several different local user machines with printers, databases, and shared devices WAN (Wide-area network): links distributed users and local networks into an integrated communications network Web browsers: software designed to allow users to easily view various documents and data sources available on the Internet Copyright 2012 ASBO International 9

10. Online Communications Technology Intranet: mini internal equivalent to the Internet, links an organization’s internal documents and databases that are accessible via Web browsers or internally developed software Extranet: expanding access to a company’s intranet to external, trusted partners Copyright 2012 ASBO International 10

11. Internet-based Systems (Cloud Computing) Cloud computing is a paradigm shift following the move from mainframe to client–server in the early 1980s. Technical expertise in server management is no longer required of the users. Instead, the technology infrastructure is managed and supported “in the cloud”. Copyright 2012 ASBO International 11 Continued…

12. Internet-based Systems (Cloud Computing) Cloud computing describes a new delivery model for IT services based on the Internet, and it typically involves over-the-Internet provision of dynamically scalable and often virtualized resources. Cloud services provide access to remote computing sites provided by the Internet, web-based tools or applications that users can access and use through a web browser, as if it were a program installed locally on their own computer. Copyright 2012 ASBO International 12

13. Important Things to Remember Security: are your records housed either manually or on-line in a location that is protected from intrusion? In fire-proof cabinets, if hard to replace Back-up: are your electronic records backed-up at least each night? If there were an emergency, have you assigned records responsibility to anyone? Do you have Business Interruption Insurance? Is your data encrypted when attached to an email? Do you have “secure” thumb drives? Copyright 2012 ASBO International 13

14. Documentation Sarbanes-Oxley Act of 2002 Section 404 requires that organizations document internal controls over their financial reporting processes This documentation helps the organization know the flow of transactions through the accounting system, helps identify which areas have implemented internal controls, and can identify areas of control gaps that need to be addressed Copyright 2012 ASBO International 14

15. Documentation Written procedures: ▫Do you have them in writing? Flowcharts: ▫Data flow diagrams, which portray business process activities, storage of data, and flows of data ▫Systems flowcharts present a comprehensive picture of the management operations, information systems, and process controls present in the business processes Copyright 2012 ASBO International 15

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18. Fraud Prevention Especially in periods of tight money, it is important to maintain absolute integrity Ethical culture Dual control Sign offs and cross checks Audit trails Secure passwords, encrypted mailings Copyright 2012 ASBO International 18

19. Fraud Prevention External audit not designed to disclose Internal audit function Metrics to indicate anomalies Exception reports Override authority/ sharing passwords Multiple employees with same deposit account Copyright 2012 ASBO International 19

20. Fraud Three factors are generally necessary for fraud to occur: Motivation (i.e. external pressures) Opportunity Rationalization (often referred to as the fraud triangle) Copyright 2012 ASBO International 20

21. Fraud Develop and promote a district-wide culture of honesty (tone at the top) Separation of duties and responsibilities among employees Dual controls-minimum of two people involved in all aspects of monetary responsibilities Monitoring controls review- spot check staff and management override controls on a periodic basis to ensure controls are working and effective Fraud reporting process in place-internal employee, external customer tips, fraud hot line, etc. Copyright 2012 ASBO International 21

22. Fraud Understand what can happen –common fraud schemes Identify red flags to look for Test for the red-flag type activities Copyright 2012 ASBO International 22

23. Fraud Resources Association of Certified Fraud Examiners (AFCE): www.acfe.comwww.acfe.com Institute of Internal Auditors (IIA): www.theiia.orgwww.theiia.org Information Systems and Control Association (ISACA): www.isaca.org www.isaca.org American Institute of Certified Public Accounts (AICPA): www.aicpa.org www.aicpa.org Open Web Application Security Project (OWASP): www.owasp.org www.owasp.org Payment Card Industry – Data Security Standards(PCI DSS): www.pcisecuritystandards.org/security_standards www.pcisecuritystandards.org/security_standards

24. Internal Service Funds Used when providing goods or services to other funds, departments, or agencies of the primary government on a cost- reimbursement basis. An internal service fund should be used only when the reporting government is the predominant participant in the activity. Otherwise, the activity should be reported as an enterprise fund. Copyright 2012 ASBO International 24

25. Due to/Due from Balance monthly Examples: ▫Internal services funds ▫Field trip costs ▫Other interfund transfers ▫State aid “settle up” Copyright 2012 ASBO International 25

26. Surprise Quiz! If a district purchases inventory in Year 1 but charges it to expense, which of the following is the result? -The first year shows less fund balance than it should -Both the first and second year are misstated Copyright 2012 ASBO International 26

27. Manage Accounting Functions Karin Slater, CFO, SFO Montrose County School District Montrose, CO Dan Huenneke Director of Budget, SFO Cherry Creek School District Greenwood Village, CO Copyright 2012 ASBO International 27

28. Manage Payroll Functions The greatest portion of the cost of education is concentrated in the form of personnel Education is labor intensive Personnel costs make up 80-90% of most school budgets Copyright 2012 ASBO International 28

29. Personnel Costs Personnel costs are the single most expensive (and most important) item in school budgets After estimating enrollment and envisioning programs, costing out salaries is the next most important task in successfully balancing revenues and expenditures A demographer may be needed to assist with studying the population and student growth of your district Copyright 2012 ASBO International 29

30. Determining Staffing Needs Enrollment drives staffing Ability to properly determine staffing needs is a function of organizing and using information about the district and its current and prospective staff Projections indicating a need for new staff require budget input Copyright 2012 ASBO International 30

31. Determining Staffing Needs Hiring decisions must be coordinated with the budget office Will budget constraints allow for additional staff to be hired If so, consider what recruiting strategy is appropriate Copyright 2012 ASBO International 31

32. Data Input As the hiring decisions are made, and the staff member’s payroll information is processed, it is critical that data be correctly entered into the payroll system There are many items pertaining to compensation that must be accurately keyed into the system, for a person’s pay and benefits to be correct Copyright 2012 ASBO International 32

33. Compensation Employee compensation includes negotiated benefits such as teacher’s retirement, defined contribution plans and various kinds of insurance Compensation also includes employer costs for workers’ compensation coverage, unemployment insurance, and social security (PERA) Copyright 2012 ASBO International 33

34. Pay Tables And Deduction Codes One of the most critical functions of the payroll office is to ensure that pay tables and deduction codes are set up and entered correctly into the software It doesn’t matter if you’ve entered the staff person’s correct pay step into the computer. If the pay step amount is not correct in the computer, underpays or overpays will occur. Copyright 2012 ASBO International 34

35. Pay Tables And Deduction Codes Deduction codes and the correct percentages should be entered and double checked for accuracy Retirement payments made to the Employee Retirement System, and taxes paid to the IRS, are dependent on accurate percentages being set up in the payroll software Copyright 2012 ASBO International 35

36. Benefits/Other Compensation Leave Benefits: There is often time away from the job not deducted from pay, including sick leave, bereavement leave, and personal leave Other Comp: Direct and indirect compensation such as overtime pay, supplemental salaries, and performance pay may also occur Copyright 2012 ASBO International 36

37. Benefits/Other Compensation Leave balances available to employees are handled either by regular accruals, or by days given on an annual basis or some other benchmark in the employment process A system must be in place for all leave requests so proper reduction of leave balances occurs, or pay docks are processed, if no leave is available Copyright 2012 ASBO International 37

38. Checks and Balances Payroll oversight entails making sure that the amounts paid are correct, and that the benefit calculations are accurately figured Deduction registers should be scrutinized for reasonableness Random sampling should be performed to check % calculations Copyright 2012 ASBO International 38

39. Salary Payment Options There are many different categories of employees that work in a school system, and often their start dates and contract days vary Many districts require 10 month employees receive their annualized pay over 12 months, to handle monthly insurance premiums or annuity deductions that continue on a year- round basis Copyright 2012 ASBO International 39

40. Salary Payment Options Summer checks run in June (July and August checks that are for salaries to be charged in current fiscal year) will have taxes, retirement payments and other deductions withheld Payment of these deductions require close supervision to ensure paid in the right month and paid by certain deadlines Copyright 2012 ASBO International 40

41. Manage Accounts Receivable The purpose of Accounts Receivable is to track revenues that are not yet received by the District Procedures should be set in place to accumulate, categorize, report and control revenues due the district Copyright 2012 ASBO International 41

42. Manage Accounts Receivable Procedures and practices should remain the same across time and reports. If differences occur, they should be due to substantive differences in the events and conditions reported rather than because of arbitrary accruals Copyright 2012 ASBO International 42

43. Manage Accounts Receivable The Accounts Receivable function can provide a method for accruing revenues earned for a certain period, for consistency and comparative analysis to that same period the year before. Copyright 2012 ASBO International 43

44. Revenue Applications Revenue and Accounts Receivable applications should be designed with superior and flexible functionality to generate, maintain, inquire, collect and report on revenues earned Copyright 2012 ASBO International 44

45. Manage Purchasing Process Accountability for public money is backbone of purchasing Procedures must be in place that focus on getting the best bang for the buck with taxpayer funds As long as procedures are outlined and followed, then substantiation for purchasing decisions will be in place Copyright 2012 ASBO International 45

46. How Districts Procure Goods and Services The District obtains quotes, at the appropriate dollar threshold, on items to be purchased and then creates purchase orders to award the contracts based on Board of Education approval Requisition system-used to acquire goods/services by purchase order and verify budget authority Purchase order – legal authority to spend Contracts - to delineate specific terms Districts should purchase from responsible business entities. Copyright 2012 ASBO International 46

47. Purchasing Process Bidding ▫Public notice normally 10 to 20 days before ▫All bids must be sealed ▫All bids must be opened during a public bid opening where the contents are announced ▫Bids should be awarded to the lowest responsible bidder who conforms in all material aspects to the requirements and criteria set in the invitation to bid Request for Proposals - often used for services Copyright 2012 ASBO International 47

48. Options for Purchasing Quotes from vendors State Contract pricing National Purchasing cooperative ▫US Communities ▫NJPA (National Joint Powers Alliance) Allow participating governmental and municipal agencies to reduce the cost of purchased goods by leveraging their combined purchasing power. Copyright 2012 ASBO International 48

49. Manage Accounting Functions - continued Copyright 2012 ASBO International 49 Karin Slater, CFO, SFO Montrose County School District Montrose, CO Dan Huenneke Director of Budget, SFO Cherry Creek School District Greenwood Village, CO

50. Agenda Copyright 2012 ASBO International 50 Manage Annual Budgets Prepare Financial Reports Manage Cash Flow Managing Activity Accounts GASB

51. Know your funds Governmental Funds  General Fund  Special Revenue Funds  Capital Project Funds  Debt Service Funds  Permanent Funds Proprietary Funds  Enterprise Funds  Internal Service Funds Copyright 2012 ASBO International 51

52. Know your funds Fiduciary Funds  Pension Funds  Investment Funds  Private Purpose Funds  Agency Funds Copyright 2012 ASBO International 52

53. Manage Budgets What is a budget? ▫An educational plan that….  Satisfies requirements of state, local and federal governments  Provides both expending and taxing authority  Estimate of revenues and expenditures  Provides a tool to measure fiscal performance  Seeks to accomplish the financial goals of the Board of Education and its stakeholders  It’s an estimate. Copyright 2011 ASBO International 53

54. Manage Budgets cont’d Philosophies ▫Student-Based ▫Zero-Based ▫Site-Based ▫Program-Based ▫Combination of the above Copyright 2012 ASBO International 54

55. Manage Budgets cont’d Begin with assumptions ▫State and federal government budget projections ▫Tax cap, if applicable ▫Contractual obligations (collective bargaining agreements, vendor contracts, etc.) ▫Programmatic changes ▫Staffing changes ▫Non-routine expenditures (e.g., textbooks, uniforms) ▫Technology needs ▫Capital projects/expenditures Copyright 2012 ASBO International 55

56. Manage Budgets, cont’d Budget revenue ▫Local ▫State ▫Federal  Difficult to forecast and budget  Review historical trends  Know the program or population being served  Federal Grants are potentially difficult to budget because of the timing of approvals Copyright 2012 ASBO International 56

57. Manage Budgets, cont’d Budget expenses Review assumptions on key budget drivers, make additional assumptions and collect other expense related information, including: ▫Current and projected enrollment  Trend analysis  Cohort survival (i.e. grade level roll) ▫Current and projected number of employees ▫Status of negotiations ▫Current fiscal year – year to date results ▫Limitations imposed by revenue projections Copyright 2012 ASBO International 57

58. Manage Budgets, cont’d Budget expenses Salaries Benefits Purchased Services Supplies & Materials Capital Outlay Other Objects Out of district tuition (e.g., special ed) Copyright 2012 ASBO International 58

59. Manage Budgets cont’d Estimating expenditures ▫Identify programs and functions ▫Determine types and quantities of resources needed ▫Estimate costs of each program or function ▫Consider the teacher contract  How much schedule movement can you anticipate?  Is there a new Master’s program in town? Copyright 2012 ASBO International 59

60. Continuum for budget reduction  Obtain reduced prices for services  Increase productivity  Defer spending  Make across-the-board cuts  Eliminate “non-essential” services  Reduce instructional positions and programs Copyright 2012 ASBO International 60

61. Manage Budgets cont’d Reductions through improved efficiencies ▫Energy conservation ▫Risk management ▫Purchasing ▫Privatization ▫Training for operations/support staff ▫Deferral of expenditures ▫Use of more efficient equipment ▫Early retirement plans ▫Lower salary increases ▫Lower cash carryover (working cash) Copyright 2012 ASBO International 61

62. Budgeting Adjustments Budget reductions due to program reductions ▫Reduce instruction staff ▫Reduce course offerings ▫Reduce support staff ▫Reduce non-essential services Copyright 2012 ASBO International 62

63. Manage Budgets cont’d Reductions are inevitable, but how can we increase revenues to avoid cuts? ▫Charge for services provided  Facility use by others (pool, auditorium, etc.)  Parking ▫Charge for non academic services  Transportation (if not mandated)  Private sector support  Volunteers Copyright 2012 ASBO International 63

64. Manage Budgets cont’d The budget is “done”, the year is almost over, what now? ▫Compare budget to actuals  Are actual expenditures within the budgeted amount?  How much is left to spend? ▫Look at encumbrances  Defined-obligations in the form of purchase orders, contracts or salary commitments chargeable to an appropriation and for which part of the appropriation is reserved Copyright 2012 ASBO International 64

65. Preparing Financial Reports Accountability Transparency Environment of trust Reporting is dependent on the needs of the stakeholders and legal compliance requirements How do you present your budget?  PowerPoint presentation?  Executive Summary?  Detailed spreadsheet? Copyright 2012 ASBO International 65

66. Preparing Financial Reports Consider Budget at a Glance reporting Consider Performance reporting at various levels ▫School and Department Level Budgets ▫Information on School & District Goals ▫Be considered for national budget awards  ASBO, GFOA  Set the professional standard for your school district Copyright 2012 ASBO International 66

67. Budget at a Glance Sample Performance Budgeting by Level Copyright 2012 ASBO International 67 http://www.cherrycreekschools.org/FiscalServices/Budget/Pages/2013-14.aspx

68. Managing Cash Flow Determine cash on hand requirements Cash on Hand Liquidity Test = projected estimate of the number of days a district could meet operating expenditures provided no additional revenues were received Review historical cash flow patterns Evaluate anticipated changes in patterns (recession) Establish Board Policy Create plan to build fund balances over time Copyright 2012 ASBO International 68

69. Managing Cash Flow Cash vs. Accrual ▫Cash  Recognizes revenue when received  Recognizes expenses when paid ▫Accrual  Recognizes revenue before it is received  Recognizes expenses when they are incurred ▫Modified accrual  Recognizes revenue when it becomes available and measurable and, with a few exceptions, recognizes expenditures when liabilities are incurred. Colorado has rules to follow (i.e. FPP Manual) Copyright 2012 ASBO International 69

70. Student Activity Accounts Activity account ▫ONLY benefit students ▫Owned, operated, and managed by organizations within the student body under the guidance of a faculty member ▫Examples? Convenience account ▫For faculty, staff, parent organizations, or similar non-student groups ▫Maintained by the district Copyright 2012 ASBO International 70

71. Student Activity Accounts cont’d School Board responsibilities  Approve the establishment and purpose of each activity fund  Set policy for student participation and adult supervision of funds  Appoint a treasurer to oversee funds  Ensure appropriate recordkeeping Treasurer responsibilities  Consistent with district funds Copyright 2012 ASBO International 71

72. Student Activity Accounts cont’d Quiz!!! ▫Which expense is not an allowable activity account expense? a)Meals for students participating in an away football game b)Magazines used for the benefit of the student organization c)Meals for football coaches meeting d)Athletic tournaments outside of regular scheduled games Copyright 2012 ASBO International 72

73. Student Activity Accounts cont’d Quiz!!! ▫Which expense is an allowable activity account expense? a)Meals for football coaches meeting b)Polo shirts with team name and sport for football coaches c)Sales tax for football supplies for football students d)Gifts for football coaches or adult volunteers Copyright 2012 ASBO International 73

74. GASB 54 Governmental Accounting Standards Board ▫GASB 54 Fund Balance Reporting and Governmental Fund Type Definitions  Clarifies fund types (general, special revenue, debt service, capital projects) and their use  Revises how balances are reported  Nonspendable fund balance  Restricted fund balance  Committed fund balance  Assigned fund balance  Unassigned fund balance Copyright 2012 ASBO International 74

75. Find out more about GASB at…. http://www.gasb.org/st/summary/gstsm54.html Copyright 2012 ASBO International 75

76. Conduct Financial Planning and Analysis Karin Slater, CFO, SFO Montrose County School District Montrose, CO Dan Huenneke Director of Budget, SFO Cherry Creek School District Greenwood Village, CO Copyright 2012 ASBO International 76

77. Serve as School Leader Represent the district on financial matters Community Budget “Data-driven” analytical resource Legislature Bond ratings Copyright 2012 ASBO International 77

78. Some Questions to ponder What is your overall student-teacher ratio? How does it compare to similar districts? How do your (program) costs compare to other similar/state/provincial districts? How do your budget expenditures tie to the organization’s stated mission? Copyright 2012 ASBO International 78

79. Leadership “You are a fund balance manager” Ready access to various data services Awareness of financial trends in your state, province, or region Long term planning- multi-year projections What are the demographic trends being seen in your district, and what are the cost implications? Copyright 2012 ASBO International 79

80. Legislation How often does the governing legislature meet? Is your state/ province financial system stable or constantly being changed? What data resources are available to you? (Good chance for a brainstorm: what are your best sources to know what to expect? Share with the group) Copyright 2012 ASBO International 80

81. Impact of Legislation/Other National Events Copyright 2011 ASBO International 81 How will the downgrading of municipal debt in general impact your school district’s debt ratings? What are the most important factors affecting your debt rating?

82. Presenting Your District Copyright 2011 ASBO International 82

83. Presenting Your District Copyright 2012 ASBO International 83

84. Presenting Your District Copyright 2012 ASBO International 84

85. Telling Your Story Be ready with talking points at all times: necessary for community and elected representatives Be ready to provide cost data, as legislators may call on you for immediate answers when they are deliberating new laws/requirements Demographic trends Copyright 2012 ASBO International 85

86. Financial Impact of Strategic Planning Goals Know ahead of time what a program is likely to cost: have metrics to know what Involves working closely with program developers, particularly Curriculum An example: ▫Science scores need to improve ▫Pilot run, funded at $120,000 to provide regular rotation of science kits by grade level Copyright 2012 ASBO International 86

87. Example of Budget Costs for Strategic Objective: Improve Science Scores Added Science materials Center Manager Purchased building Purchased initial start up supplies for kits, expanded each year Courier cost was absorbed in current mail delivery model Science scores show great improvement at all levels Copyright 2012 ASBO International 87

88. Sample Goal: Want latest technology for students Operational definition: “Latest” (Best? Newest?) TCO: Total cost of ownership (CoSN model) What are the direct costs of the goal?(Teacher training?) Other staff to support the equipment? R and D to identify the proper technologies, space (small classrooms?), computer(s) and peripherals, supplies- more printing, for example (paper, toner), training, energy, opportunity cost—what else are we giving up? Capital refreshment cycle Bring Your Own Technology (BYOT) Copyright 2012 ASBO International 88

89. Develop Financial Goals Operating cost per student Cost of instruction as a percent of dollar Cost of teacher starting salaries to be highest in region Fund balance policy, if not prescribed by law Cost of support (metrics:cost per square foot to maintain, clean, landscape) Long-term strategies: 10 year facilities plan Copyright 2012 ASBO International 89

90. Other Financial Goals Does the Board wish to control its tax rate against any given benchmark? Long-term replacement plans (buses, copiers, technology refreshment, musical instruments) Construction of facilities: cost to construct, life cycle costs, green initiatives (LEED) For each area or program, what are the costs? For example, do you pay more for staff development, but have lower turnover as a result? (Better retention/morale – student achievement) Can you point to resources in the budget that demonstrate commitment to strategic goals? Copyright 2012 ASBO International 90

91. Evaluate Funding Options for Debt Management Typically, highly regulated…you need an attorney and a financial advisor Bond programs require a long-term strategy Including community involvement, education, identification of essential projects, recognition of failing existing building systems (roofs, HVAC, e.g.), Informational materials for the general community, tax election Lease vs. Buy (consider state aid funding mechanisms) Copyright 2012 ASBO International 91

92. Funding Options for Debt Management The following are various forms of securities, which may not be legal in your state or province General Obligation Bonds CIBs (Current Interest Bonds) CABs (Capital Appreciation Bonds) RANs and TANs (Revenue and Tax Anticipation Notes-not for raising capital, only for cash management) Leasing (TABOR provisions) Budget Notes, Public Property Finance Contractual Obligations (PPFCOs), Lease Revenue Obligations (public facility corporation is created which issues) Time Warrants Maintenance Notes, Delinquent Tax Notes, Stadium Revenue Notes, Refunding Bonds Copyright 2012 ASBO International 92

93. Lease vs. Buy Calculate the total cost of ownership Calculate the cost of leasing Which is a better economic value? Which poses more risk? (for example, if you lease, what happens if your budget cannot sustain?) NON-APPROPRIATIONS clauses-include in all contracts Copyright 2012 ASBO International 93

94. Contract Management as Financial Tool Central review of all documents which bind the district Does state/province have a caveat emptor or caveat vendor philosophy? Include venue, hold-harmless restrictions, restrictive covenants Be sure that someone does not “lease” what is actually a lease-purchase capital acquisition if your state does not permit such acquisitions Copyright 2012 ASBO International 94

95. Develop Outside Funding Sources Financial Advisor Grants- cost/benefit analysis (monitor cash request submissions) Donors Foundations (MOUs) Fund Raising (internal controls) Wise investments Copyright 2012 ASBO International 95

96. Analyze Economic Data Annual schedule of economic announcements What is your region’s primary industry? What is housing doing in your region? Are there any tax-credit housing developments being started? Consumer confidence Interest rate projections Unemployment rate Copyright 2012 ASBO International 96

97. Economic Factors Slower housing may lead to slower growth in enrollment (or not! More nuclear families in one domicile) Tax-credit developments may lead to higher school nutrition program eligibility (U.S.) Unemployment may result in slower tax collections (what are you using for collection rate?) Copyright 2012 ASBO International 97

98. Analyze Demographic Data What is your cohort survival at each grade level? Are your lower grades more populous than your higher grades? What is your free/reduced percentage over time? Are you enrolling more harder-to-educate youngsters? What impact will that have on your costs? On your general programs? Copyright 2012 ASBO International 98

99. Analyze Your Demographic Data Housing: any new starts? Foreclosures? From city planning departments: Plat approvals Inventory of homes: size in square feet, number of bedrooms, starter vs. move-up Apartments “Recycling” of neighborhoods (children grow up, house sells, new family with new children) Copyright 2012 ASBO International 99

100. Develop Multi-year Forecast Use Excel as an easy tool for this Identify major budget drivers: enrollment, property value, income (if part of the state aid equation) Identify major budget costs: Personnel (staffing ratios), Operating metrics (cost per square foot or student or ‘x’) Other: energy, support costs, equipment refreshment Copyright 2012 ASBO International 100

101. Multi-year Forecasting Important to understand how various components affect your state aid calculations Look at least three years ahead on your debt rate, do you need to smooth it out? If operating rate is concern, look at combination of both tax rates (debt and operating), consider timed application of fund balance, if available Copyright 2012 ASBO International 101

102. Multi-year forecasting Develop and share replacement schedules with Board (action, where applicable) Develop and share staffing ratios with Board ▫(action, where applicable) Examples: 1:22 k-4, 1: 27 at 5 th, 6 teachers to 150/team at middle school, 30 per class at high school (watch core class enrollments) Examples: Buses, 200,000 miles or 15 years, Band Uniforms, every 8 years Copyright 2012 ASBO International 102

103. Multi-year Forecast 103

104. 104

105. Copyright 2011 ASBO International 105

106. Estimate Real Property Tax Revenues Maintain long term collection data, and couple it with economic health indicators in your area Are there any changes to the formula that will affect your collections? If you have disabled, senior, or portability exemptions, is there any new development that might cause an increase in exemptions? Is the City/County considering any economic development strategies that will impact your collections Copyright 2012 ASBO International 106

107. Tax Collections Know the local tax office officials Have there been any property value appraisal studies? Based on longitudinal data, estimate tax collections. Consider last three years, last five, last ten. If the economy is changing, shorten the comparison years. Copyright 2012 ASBO International 107

108. End of Financial Planning and Analysis Module Questions? Copyright 2012 ASBO International 108

109. Conduct Budgeting and Reporting Activities Copyright 2011 ASBO International 109 Karin Slater, CFO, SFO Montrose County School District Montrose, CO Dan Huenneke Director of Budget, SFO Cherry Creek School District Greenwood Village, CO Copyright 2012 ASBO International

110.  Project Student Enrollment  Evaluate Instructional Program(s) Costs  Develop Annual Budgets  Manage Grant Activities  Prepare for Annual Audit Copyright 2012 ASBO International 110 Conduct Budgeting and Reporting Activities

111. Project Student Enrollment Copyright 2012 ASBO International 111  Purpose  Trend line analysis  Cohort survival

112. Evaluate Instructional Program(s) Costs  Salary and Benefits  Cost vs. Results  One-time vs. Continuous Copyright 2012 ASBO International 112

113. Develop Annual Budgets  Budget Calendar, Budget Process  Revenue Forecast/Funding Per Pupil  Assumptions drive cost projections  District Goals/Policy  Budget – Compensation Negotiations  Approaches to Budgeting  Capital and Operating Parameters – Budget goal setting Copyright 2012 ASBO International 113

114. Manage Grant Activities  Grant Sources  Local, Private, Foundations  State  Federal Confirm expected funding for budget and anticipate carryover  Key terms – Sequestration effects, if any  Reporting to State, Federal, Local, Private Sources Copyright 2012 ASBO International 114

115. Prepare for Annual Audit  Checklist  Be vigilant about reconciliations, documentation  Inventory  Cut-offs for determining year-end figures  Year End Closing Copyright 2012 ASBO International 115

116. Conduct Risk Management Activities: Plan, Prepare, Protect Karin Slater, CFO, SFO Montrose County Schools Montrose, CO Copyright 2012 ASBO International 116 Dan Huenneke Director of Budget, SFO Cherry Creek School District Greenwood Village, CO

117. What will we cover? What is School Risk Management? How do you perform a Risk Audit? How to follow up a risk audit? How to analyze available insurance options. Copyright 2012 ASBO International 117

118. School Risk Management for Dummies! The process of analyzing the risks to the health and welfare of our students and staff then finding ways to effectively mitigate that risk! The process of analyzing the risks to the stability and well being of our physical assets, our schools and finding ways to mitigate them. Making intelligent financial decisions regarding how to best manage that risk. Copyright 2012 ASBO International 118

119. What is a risk audit? It is an exercise in history and predicting the future. A risk audit begins with a historical analysis of incidents that have occurred in your schools, including Workers Compensation Claims and Incident Reports. What happened and when? Copyright 2012 ASBO International 119

120. Predicting the future? Perform a trend analysis!Flood Data From NOAA Look at weather or flood predictions. Review long term community growth trends. Review crime statistics and discuss possible future trends. 120 Copyright 2012 ASBO International

121. What’s Next? Mitigation Planning Review ways to reduce risks associated with historical or possible future threats. Purchase products or create policies to reduce risks associated with operating a school. NEVER STOP! The cycle continues!!! 121 Copyright 2012 ASBO International

122. Insurance Management Outside Insurance FirmsSelf Insurance Review available options from commercial business insurers. Allow them to help provide you with a risk assessment! What are the risks? What is your current situation? What knowledge do YOU have? 122 Copyright 2012 ASBO International

123. Other Options? Insurance Pool? State Office of Insurance? Combination planning. Legal insurance. Copyright 2012 ASBO International 123

124. Manage School Facilities If you build it.. They will come! Copyright 2012 ASBO International 124 Karin Slater, CFO, SFO Montrose County School District Montrose, CO Dan Huenneke Director of Budget, SFO Cherry Creek School District Greenwood Village, CO

125. What would school look like without walls? Copyright 2012 ASBO International 125

126. So we know we need walls! We will review how we plan our schools. How do we maintain our schools? How do we build new schools? Copyright 2012 ASBO International 126

127. You need a plan! How many schools do you need? How many schools WILL you need? How many schools do you have? How long will the schools that you have last? Copyright 2012 ASBO International 127

128. Did you know? The average age of a school in the US is 42 years old! 1927 new schools were opened in 2008. 2120 schools were closed! Public school enrollment is expected to increase by 12% before 2017. http://www.rebuildameric asschools.org/ http://www.rebuildameric asschools.org/ Copyright 2011 ASBO International 128

129. How do we maintain them? A strong maintenance team is necessary to extend the service life of schools. Focus on preventive maintenance, use electronic work orders. Perform life cost analysis rather than the early savings! Copyright 2012 ASBO International 129

130. Train your team They must focus on good work skills. They should have a strong sense of ownership in the facilities. They can be a key resource for any energy saving initiatives! Copyright 2012 ASBO International 130

131. Build your next school! Once you know that you need a new school. Where can you build it? How much money will it cost too build? How will you pay for it? Copyright 2012 ASBO International 131

132. Marketing for school facilities Use your parents as key stakeholders Sell your School Board Sell your elected officials Sell your voters or the public! Copyright 2012 ASBO International 132 Caution: Most states do not allow schools to advocate, only to inform with facts regarding school district bonds

133. Once you pass a bond or budget funding Find the right architect. Decide what construction model you would like to use: Managing Architect versus Construction Manager. Begin planning! Copyright 2012 ASBO International 133

134. What else? Outside groups using school facilities Recreational and sports facility management Green cleaning initiatives Fixed assets Preventive maintenance programs Energy purchasing and conservation programs Life safety management programs Copyright 2012 ASBO International 134

135. Where can I learn more? ASBO School Facilities Committee National Clearinghouse for Educational Facilities. Facility Masters Program Copyright 2012 ASBO International 135

136. Manage Information Systems Karin Slater, CFO, SFO Montrose County School District Montrose, CO Dan Huenneke Director of Budget, SFO Cherry Creek School District Greenwood Village, CO Copyright 2012 ASBO International 136

137. Assist in Developing Technology Plan What is the district’s Technology Vision? What is desired for children to use and to know? Roles include automational, transformational, communications, efficiency “Mission critical” What is mandated? What does it take to get there? Copyright 2012 ASBO International 137

138. Assist in Developing Technology Plan Consider: Infrastructure, bandwidth, telecommunications (E-rate) Training of staff (critical!) Equipment standards and refreshment Accessibility of printers to classrooms (cost factor) Standardization of software Disaster and recovery (share with other schools?) Business interruption insurance Copyright 2012 ASBO International 138

139. Assist in Developing Technology Plan High degree of attention needs to be placed on security Secure versus non-secure sites Many textbook companies are offering online textbook enhancements, but the sites are not secure: FERPA and privacy concerns You need a Technology Plan ! Copyright 2012 ASBO International 139

140. Assist in Developing Technology Plan Open source computing vs. proprietary software Cloud computing Scope agreement ▫Due diligence about project scope (avoid scope creep) Copyright 2012 ASBO International 140

141. CoSN Checklist for Efficient Operations IT Asset Management Manage software licenses repurpose minimally used computers: Some computers are used more than others. Certain software applications are no longer used, or they’re not installed on all of the systems for which they are licensed. It is prudent to make sure that computers (including servers) are located where they are needed most and licensed only for the software actually in use. An IT asset management application can monitor this use over the network, evaluating usage results over time. Consortium for School Networking, www.cosn.orgwww.cosn.org Copyright 2012 ASBO International 141

142. CoSN Checklist for Efficient Operations Help Desk and Centralized Support Tools Technical support consumes time and money when technology professionals must travel from building to building to maintain equipment, troubleshoot problems and support end users. With already stretched staffs and more staff reductions in the offing, it’s a good idea to find a way to support users more efficiently. Automated, remote support from a centralized help desk is an answer. Centralized user support requires tools to view and control computers remotely. This approach to problem management does have some up-front costs, but it provides the opportunity for efficiencies over the longer term, while maintaining user satisfaction by effectively managing responses to support requests. A vendor-provided centralized support ROI calculator can be found at www.kace.com (a Dell program)www.kace.com Copyright 2012 ASBO International 142

143. CoSN Checklist for Efficient Operations Computer Refresh Cycle During times of economic stress, one of the budget areas that receives scrutiny is the IT capital budget and the computers scheduled for replacement. Leasing… Direct and Indirect Labor While looking into reducing time computer support techs spend traveling through centralized support techniques, it is also important to ask, "Who is providing direct labor services?" Direct labor includes all personnel who have as at least part of their responsibility to provide computer support or other computer services. This may include external providers, teachers, aids, school-based techs who don't report to the IT organization, as well as the computer services organization. Is your current support structure as effective as it can be? In many cases it doesn't make sense to pay teachers, who are not trained as techs and are more expensive, to provide user support services. Copyright 2012 ASBO International 143

144. CoSN Checklist for Efficient Operations Computer, Server and Network Consolidation Server Consolidation and server virtualization reduce complexity, OS and other software licenses, and power usage. This process involves up-front planning and some initial investment, but can result in significant savings. This topic is covered under "Other Resources" and in CoSN's Green Computing Leadership Initiative. Networks: A district telecom system typically consists of data lines from campuses to the central office and connection to the Internet, plus internal and external voice communications and often security and clock synching networks. The external voice connections through the local telephone company can add up to a significant cost, as do Internet access lines and Internet service provider (ISP) charges. A study of VoIP costs and savings should be considered, as well as consolidation of the data networks. Copyright 2012 ASBO International 144

145. CoSN Checklist for Efficient Operations Number of Supported Operating Systems and Applications A broad mix of desktop, laptop and server operating systems requires a broad mix of support talent and complicates system integration and network management. This is not to say there should be only one operating system. More than one client and one server operating system however, that supporting multiple OS versions also could be more costly in terms of support talent and system/network integration issues. Printing Printing and copying can be major expense that include hardware, ink or toner cartridges, energy and paper costs. It’s important to evaluate your current printer inventory: How many and what type of printers and copiers are connected to computers and on the network? Operational costs can be drastically reduced by replacing individual other inkjet printers in favor of strategically located print/copy centers. Implementing electronic forms for staff and school board use can also reduce the cost of printing. Copyright 2012 ASBO International 145

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147. Maintain Technology and Telecommunications Systems Platform decisions-cost and complexity Staffing ratios for support - fixing and teaching R&D: emerging trends and technologies Cloud computing, in-house programming, open-source VoIP, POTS (Plain Old Telephone Service) Refreshment cycles, and how funded E-rate decisions Security policies, spam filtering, content blocking Copyright 2012 ASBO International 147

148. Maintain Technology Systems/Oversee Telecommunications Systems Capacity should always be measured: when will you need more (ports? shelves? band width?) Conduct predictive exercises Planning for capacity is multi-year effort (budget and bonds) License compliance Acceptable use policies, employment consequences Policies on social media-risks and benefits Copyright 2012 ASBO International 148

149. Manage Technology and Telecommunications Systems Staffing: expertise and staying competitive with market Preventive Maintenance schedules Service Level Agreements ITIL: (Information Technology Infrastructure Library) Responding to growing dependence on IT, the UK Government's Central Computer and Telecommunications Agency (CCTA) in the 1980s developed a set of recommendations. It recognized that without standard practices, government agencies and private sector contracts were independently creating their own IT management practices.The IT Infrastructure Library originated as a collection of books, each covering a specific practice within IT Service Management. ITIL was built around a process-model based view of controlling and managing operations often credited to W. Edwards Deming and his plan-do-check-act (PDCA) cycle. Central Computer and Telecommunications Agency http://en.wikipedia.org/wiki/Information_Technology_Infrastructu re_Library Copyright 2012 ASBO International 149

150. Manage Information Systems Questions? Copyright 2012 ASBO International 150

151. Manage Human Resource Functions Copyright 2012 ASBO International 151 Karin Slater, CFO, SFO Montrose County Schools Montrose, CO Dan Huenneke Director of Budget, SFO Cherry Creek School District Greenwood Village, CO

152. Manage Hiring of Good Employees Recruitment ▫Review the necessary qualifications by appropriate personnel: HR, principals, supervisors Utilize interview paperwork Copyright 2012 ASBO International 152

153. Manage Hiring of Good Employees Vacancy Notice ▫Include job description or summary job description ▫Work Schedule ▫Hourly rate ▫Salary Copyright 2012 ASBO International 153

154. Manage Hiring of Good Employees Application Qualifications Reference Check Interviews ▫Use at least teams of two  Ensure at least one individual on the team is knowledgeable of job functions ▫Document questions and answers ▫Ensure questions are appropriate ▫Prohibit comments that are personal and subjective Copyright 2012 ASBO International 154

155. Manage Hiring of Good Employees Orientation Goals ▫To promote the new employee’s identification with the school entity ▫To facilitate the new employee’s successful adjustment to the entity and to the position to which he/she has been assigned Copyright 2012 ASBO International 155

156. Manage Hiring of Good Employees Probationary Period ▫30 days to 1 year ▫Formal evaluation Copyright 2012 ASBO International 156

157. Manage Hiring of Good Employees Tour of facility Introduction to staff On-site organization structure Reporting time/procedures Inclement weather procedures Attendance/punctuality Absence notification Special equipment/supplies (tools, etc.) Dress Security/ID badges Emergency procedures School calendar Break times Lunch area procedures Parking Telephone calls/rules Overtime/comp. time/extra duty Staff/faculty meetings Sick leave/other leaves Copyright 2012 ASBO International 157 ORIENTATION TOPICS

158. Manage Hiring of Good Employees Jury duty Safety/accident reporting Handbook or contract distribution Review of position description Evaluation form Review and receipt of particular policies ▫(harassment, smoke/tobacco/drug-free workplace, workers’ compensation, evaluation, discipline, child/student abuse) Explanation of applicable employee benefit programs ▫(Retirement, health and life benefits, flexible spending accounts) Tax-sheltered annuities Payroll dates and procedures Probationary period Copyright 2012 ASBO International 158 ORIENTATION TOPICS

159. Develop Compensation Structure Compensation Management ▫Goal: Have a system of determining compensation for employees that is:  Fair  Understandable  Rational Copyright 2012 ASBO International 159

160. Develop Compensation Structure Compensation Management ▫Internal Equity  Range of pay for positions in organization and the relative value/rate of pay assigned ▫External Equity  Rate of pay for a position as compared to the “market”  “Market” for school districts is surrounding districts  For some trades and technology other external data may be relevant  Critical to attracting and retaining qualified candidates Copyright 2012 ASBO International 160

161. Manage Staff Development and Training Programs Link training with ASBO/ Local ASBO Look for appropriate college opportunities for staff development Bring effective personnel through internal and external development programs Copyright 2012 ASBO International 161

162. Manage Evaluation Process Purpose of Evaluation First, it acts as the tool to evaluate administrator/teacher/staff support performance Secondly, it provides the documentation necessary to award merit increases as a result of demonstrated performance Copyright 2012 ASBO International 162

163. Manage Personnel Administration Pertinent Regulations ▫Family and Medical Leave Act of 1993 (FMLA)  The U.S. Department of Labor’s Employment Standards Administration, Wage and Hour Division, administers and enforces the Family and Medical Leave Act (FMLA) for all private, state and local government employees, including school entities. FMLA became effective on August 5, 1993 and entitles eligible employees to take up to 12 weeks of unpaid, job-protected leave in a 12-month period for specified family and medical reasons. The employer may elect to use the calendar year, a fiscal year or a 12-month period prior to or after the commencement of leave as the 12-month period.  The law contains provisions on employer coverage, employee eligibility for the law’s benefits, entitlement to leave, maintenance of health benefits during leave, job restoration after leave, notice and certification of the need for FMLA leave and protection for employees who request or take FMLA leave. The law also requires employers to keep certain records.  School entities should adopt policies to clarify specific aspects of the law. Copyright 2012 ASBO International 163

164. Manage Personnel Administration ▫Consolidated Omnibus Budget Reconciliation Act (COBRA)  Federal law requires that employers offer eligible employees and their dependents the opportunity for a temporary extension of health coverage called continuation coverage at group rates in certain instances, or Qualifying Events, where coverage under the plan would otherwise end. ▫The Health Insurance Portability and Accountability Act of 1996 (HIPPA)  HIPAA protects health insurance coverage for workers and their families when they change or lose their jobs.  http://www.hhs.gov/ocr/privacy/ ▫Drug-Free Workplace Act of 1988  Required of any organization who receives federal funding Copyright 2012 ASBO International 164

165. Manage Personnel Administration ▫Omnibus Transportation Employee Testing Act of 1991  requires all school entities to establish programs and practices designed to help prevent accidents and injuries resulting from the misuse of alcohol or controlled substances by drivers of commercial vehicles subject to the commercial driver’s license (CDL) requirements ▫Harassment Policy  Equal Employment Opportunity Commission guidelines on discrimination because of sex define sexual harassment as any unwelcome sexual conduct that “has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile or offensive work environment.” ▫Americans with Disabilities Act (ADA)  Activities covered under the ADA include but are not limited to walking, talking, seeing and hearing. People with a record of such impairment and those regarded as having an impairment are protected under the ADA. Copyright 2012 ASBO International 165

166. Manage Personnel Administration ▫Age Discrimination in Employment Act (ADEA)  prohibits employment discrimination against any individual forty years of age or older. ▫Pregnancy Discrimination Act (PDA)  Employees who are pregnant must be treated the same as other employees with similar disabilities or limitations. An employer cannot refuse to hire a woman because she is pregnant nor may an employer terminate a woman simply because she becomes pregnant.  If an employee is temporarily unable to perform the requirements of a job due to pregnancy, the employer must treat her like any other temporarily disabled employee ▫State Regulations  Veterans Preference  State Certification Guidelines Copyright 2012 ASBO International 166

167. Manage Employee Benefit Programs The most important and overlooked aspect of employee benefits administration is communicating the value of these benefits to staff Benefits can average 25-30% of total compensation for most entities Copyright 2012 ASBO International 167

168. How to Communicate Benefit Information Personalized statements sent periodically to each employee showing the employee’s salary and an itemized list of the benefits available to that employee and the entity’s cost to provide those benefits Benefit booklets written so that they can be easily read and understood by the employee Periodic meetings to review changes in coverage utilizing insurance company representatives to explain coverage, answer questions, etc. Orientation programs for new employees Copyright 2012 ASBO International 168

169. Manage Employee Benefit Programs Copyright 2012 ASBO International 169

170. Manage Employee Benefit Programs All school administrators should have a basic understanding of the value and coverage offered through their entity’s benefit package. They should be able to direct employee inquiries to the appropriate staff person who can answer specific questions. Areas in which staff members must be knowledgeable include: Eligibility requirements for all insurance coverage Rates for all insurance coverage Co-payment amounts, if applicable COBRA regulations Eligibility requirements for PSERS (PERA) Basic understanding of all coverage provided Amounts and procedures for calculating vacation days, sick days, personal days, etc. Copyright 2012 ASBO International 170

171. Manage Ancillary Services Karin Slater, CFO, SFO Montrose County School District Montrose, CO Dan Huenneke Director of Budget, SFO Cherry Creek School District Greenwood Village, CO Copyright 2012 ASBO International 171

172. Manage Ancillary Services There is a tendency in society to see the mission of schools as exclusively instructional The unfortunate outcome is other areas are ignored when they should also be valued for their role in providing equal opportunity and meaning to the social and educational mission of schools Copyright 2012 ASBO International 172

173. Transportation and Food Service Programs Schools would be negatively impacted without these operations Every child has a right to a good education without regard for socioeconomic status Every child should be able to get to school without hardship and attend classes free from hunger Copyright 2012 ASBO International 173

174. Transportation and Food Service Programs There is no equal opportunity when educational programs are physically inaccessible or when children are underfed All stakeholders in education should be concerned with organizing and operating efficient systems for transporting and feeding children. Copyright 2012 ASBO International 174

175. Transportation These operations are large and complex regardless of school district size Urban districts use many buses to transport thousands of students over short distances Rural districts also need many buses, despite low pupil population, to travel over countless open miles Copyright 2012 ASBO International 175

176. Transportation Actual costs may be similar, and large and small systems alike face issues of safety, insurance, and so on Billions are spent annually, making it a major industry Complex issues of liability, safety, and equal access State and federal regulations Copyright 2012 ASBO International 176

177. Transportation Function No doubt one of the most visible services in schools Bright yellow school buses arrive in front of homes of more than half of all school children each morning And the bus is often the last school contact of the day Copyright 2012 ASBO International 177

178. Transportation Function Also involves taking students on field trips and to athletic and academic events Also assist with other services such as special education Copyright 2012 ASBO International 178

179. “When floors shine, the schools seem good” When buses are late or when problems arise, everything about schools seems suspect As a result, transportation is one of the most important and visible non-instructional activities of schools Copyright 2012 ASBO International 179

180. Transportation Origins and Purpose Transportation and state financial support have been in existence since 1869 Pupil transportation has had no choice but to grow as compulsory attendance, district consolidation, and the advent of motor vehicles have drastically affected society. Copyright 2012 ASBO International 180

181. Transportation Origins and Purpose A major role for transportation has also arisen from court-ordered desegregation plans revolving around forced busing More recently, magnet schools and year-round schools have added to the complexity of pupil transportation Copyright 2012 ASBO International 181

182. Complexity of Transportation Variables such as population density, number of pupils to be transported, topography, road conditions, and length of routes affecting the size of buses on routes Movement of population within a community may create new transportation demands Racial integration may require new school attendance boundaries Copyright 2012 ASBO International 182

183. Director of Transportation Services Requires a variety of talents and skills: Ability to efficiently organize a large transportation fleet and to consistently demonstrate human relations skills in working with personnel problems Skilled in decision-making to manage effectively Knowledge of diverse topics, including computer routing, budgeting, labor relations, inventory, drug testing, underground storage tanks, and hazardous materials Copyright 2012 ASBO International 183

184. Comprehensive Transportation Manual Document should be open to public, and in- service should be held with transportation staff to clarify the policies of the district Special emphasis must be given to driver training, pupil discipline, energy conservation, disability issues, public relations, bus routes, and bus schedules Copyright 2012 ASBO International 184

185. Transportation Funding Like other forms of state aid, transportation aid varies in amount and distribution method from state to state Formulas include a variety of factors, such as expenditures per pupil, population density, bus capacities, matching grants, or some combination as common denominators Copyright 2012 ASBO International 185

186. Transportation Funding Some states provide a transportation allowance based on hazardous walking conditions In some states, transportation aid is tied to the general fund formula One basic similarity: in most states, transportation aid almost NEVER covers the entire cost Copyright 2012 ASBO International 186

187. What other Transportation issues are relevant? Owning or Contracting Computerizing Transportation Services Purchasing Buses Maintenance and Safety Copyright 2012 ASBO International 187

188. Owning or Contracting Contracting avoids the cost of buying buses Contracting avoids the high maintenance cost of older buses It’s argued that contracting lowers capitalization costs, reduces personnel and administration costs, and provides greater efficiency through contractors whose sole business is transportation Copyright 2012 ASBO International 188

189. Contracting Transportation Counterarguments, however, include: how to ensure quality performance by a contractor when the district no longer controls the public relations aspect of the contractor’s behavior the need for insuring against liability for acts of contractors Copyright 2012 ASBO International 189

190. District Ownership of Transportation Arguments for district ownership: Provides more flexibility, provides selection, training, and supervision of transportation employees, and ensures control over changes in operational costs Copyright 2012 ASBO International 190

191. Owning or Contracting It may be that there is no one best option for transportation, as the right choice may depend on a district’s financial position and the community’s attitude about this vital service Copyright 2012 ASBO International 191

192. Computerizing Transportation Services Every year more districts are using computerized routing systems These plans are cost-effective in that they can apply mathematical formulas for routing efficiency Aid in mapping routes, including census data, highway time delay studies, and other manual data supplied Copyright 2012 ASBO International 192

193. Computerizing Transportation Services Software is even available to preplan routes in undeveloped areas in advance of actual population movement Computerized fleet maintenance is also common. Total costs and item costs can be accounted for instantly and used to make decisions about maintenance and disposal Geocoding, privacy issues Copyright 2012 ASBO International 193

194. Purchasing Buses Large outlays (over $50,000 per bus, plus additional thousands for a bus with a wheelchair lift) Local districts use written specifications, usually based on state guidelines Especially complicated because they are purchased on separate chassis and body bids, but this provides both economy and specialization that can be used by manufacturers Copyright 2012 ASBO International 194

195. Purchasing Buses Larger buses are more versatile, which in turn reduces the number of buses and staff. Smaller buses are used in sparsely inhabited areas or inner cities on crowded streets Copyright 2012 ASBO International 195

196. Maintenance and Safety Maintenance, safety, and staff are inseparable in any discussion of transportation Good drivers cannot offset bad buses, nor can new equipment offset bad drivers. Transportation utmost duty: To ensure student safety Copyright 2012 ASBO International 196

197. Surprise Quiz! Let’s say you are a bus driver. You make your first stop, and ten children get on. At the second stop, two get off (for some permissible reason), and eight get on. At the third stop, seven students board the bus. When you get to the school, all the children disembark. Copyright 2012 ASBO International 197

198. Surprise Quiz! (Cont’d) How old is the bus driver? Copyright 2012 ASBO International 198

199. Food Service Programs Like transportation, the food service function is a key to effective and efficient operation of schools Less visibly related to the primary mission of schools, but provides vital support to the instructional process Copyright 2012 ASBO International 199

200. Food Service Function Need to understand the following: How it operates How meal prices are set under federal, state, and local participation How revenues and expenditures in food service budgets are allocated Much more regulation on meal content Copyright 2012 ASBO International 200

201. Linking School Performance to Nutrition Undernourishment due to poverty and ignorance is still sizable in today’s era of economic progress Data exists that links poor school performance to nutrition The role of food service in schools has increased with time, as seen in the fact that most U.S. schools now have both breakfast and lunch programs Copyright 2012 ASBO International 201

202. Food Service Funding Long history of federal (U.S.), state, and local subsidies to supplement meal prices paid by children These sources make up the revenue side of food service operations and are highly interdependent Copyright 2012 ASBO International 202

203. Federal Support Surplus commodities began to be used in school lunch programs in 1936 Not long afterward, The United States Congress enacted the National School Lunch Act authorizing grants to states to help provide food and facilities for school lunch programs Copyright 2012 ASBO International 203

204. State Support Individual state participation is harder to summarize because each state has been free to determine the extent of its involvement in the National School Lunch Act State funding is relatively small compared to federal spending Copyright 2012 ASBO International 204

205. Local Support The local contribution is defined as dealing with the leftover costs after fed/state revenues are expended The local role is thus one of determining how much, if any, the district wishes to further subsidize meals by shifting additional local tax revenue to food service Copyright 2012 ASBO International 205

206. Local Support Leaving the unfunded part of meal costs to the local district creates a heavy burden for schools, in that such decisions have moral and financial implications. If the district channels all unfunded costs to families, then some children may not receive the intended benefits of food service programs. Copyright 2012 ASBO International 206

207. Local Support If the district subsidizes meals from tax revenues, a choice to reduce other program expenditures is often made. Costs, efficiencies, and all other aspects of operations are a function of district size and skill in directing food service operations. The number of meals and dollars becomes large very quickly. Copyright 2012 ASBO International 207

208. Relevant Issues Often the biggest problem is rising costs associated with purchasing and preparing foods such as supply price increases, labor costs, and equipment and facilities – all of which must factor into what the district ultimately charges for meals. Copyright 2012 ASBO International 208

209. Compliance Requirements Compliance is a common concern whenever outside aid is provided. Assurances are directed to the federal government in return for dollars and commodities Districts must assure states of compliance so the state can provide its own assurances to the federal government. Copyright 2012 ASBO International 209

210. Federal Rules and Regs Operate a nonprofit program ▫Only a 3 month operating balance may be kept on hand and still be nonprofit Serve meals that meet nutrition requirements - Programs can offer single menu, fast food choice menu, or a’ la carte menu Copyright 2012 ASBO International 210

211. Federal Rules and Regs Price meals as a unit ▫To count as reimbursable, meals must be priced as a unit. This does not prohibit single item sales Supply free and reduced meals ▫To eligible needy children Agree to avoid discrimination ▫No child may be refused because of inability to pay, race, gender, or national origin Copyright 2012 ASBO International 211

212. Federal Rules and Regs Keep accurate records of income and expenditures ▫Records are subject to intensive state and federal audits Complete a formal reimbursement claim ▫Claims must be sent on a timely basis each month to the state Copyright 2012 ASBO International 212

213. Federal Rules and Regs Distribute applications for free and reduced meals ▫Districts must actively inform each student of the program Review and act on F&R applications ▫Parents or guardians must be notified regarding decisions Develop and implement verification procedures ▫A method of verifying accuracy of applications must be followed 213 Copyright 2012 ASBO International

214. Federal Rules and Regs Maintain accurate participation records ▫The district must establish procedures for obtaining accurate meal counts Establish and implement purchasing procedures ▫Purchasing procedures must comply with state and federal regulations Copyright 2012 ASBO International 214

215. Federal Rules and Regs Use federally donated foods or commodities ▫This includes the ability to store commodities properly without spoilage Approved programs provide meals based on daily nutritional requirements ▫ Must provide approx 1/3 of the recommended dietary allowance (RDA) Copyright 2012 ASBO International 215

216. Meal Reimbursements To receive reimbursement, a lunch must contain a set of specified components and menu items, where components are: ▫Meat or meat alternate ▫Vegetable and/or fruit ▫Bread or bread alternate ▫Milk The Goal is a balanced diet Copyright 2012 ASBO International 216

217. Food Service Management Options on types of management systems best suited to a district’s needs: ▫Management companies ▫Centralized in-house operations ▫Decentralized in-house food service Careful cost analysis necessary since each has its benefits and problems Copyright 2012 ASBO International 217

218. Management Companies Use of outside management companies centers around debate of whether it is more cost- effective The main reason many districts have decided to contract for food service has been a benefit stemming from fiscal and managerial efficiency Copyright 2012 ASBO International 218

219. Benefits to Contracting Administrators have more time for curriculum Wage and benefit costs, disputes, and grievances have been reduced because the district no longer handles personnel Menu planning is improved by use of food professionals Copyright 2012 ASBO International 219

220. Benefits to Contracting In-house record-keeping requirements are reduced There is strong incentive for food service to become a profit center with high client satisfaction Copyright 2012 ASBO International 220

221. Contracting Services Districts should take care to choose from a list of reputable and experienced firms Should act from a set of bid specs to assist bidders in deciding whether to bid, as well as establishing the criteria for evaluating proposals Copyright 2012 ASBO International 221

222. In-House Operations Centralize or de-centralize services On-site food preparation vs. satelliting from central kitchens ‘Satelliting’ means delivering cooked food with finishing kitchens on-site, in contrast to on- site food prep Major benefit is mass preparation and non- duplication of full facilities Concern could be loss of site control and responsiveness, and over standardization Copyright 2012 ASBO International 222

223. In-House Food Services Director Full time director highly trained to assure the efficient and cost-effective operation. Needs skills to work closely with principals and central office, as well as supervising service workers Must work with district budget director, and provide leadership in setting meal prices Copyright 2012 ASBO International 223 In-House Operations

224. Wrap up Ancillary services are a vital contribution to educational outcomes Although often lacking in glamour, they represent vast expenditure outlays and significant liability They are interrelated parts of a complete educational system. Each piece makes a vital contribution and can’t be slighted without significant harm to children Copyright 2012 ASBO International 224

225. All One Team Involving support staff in the instructional program, such as voluntary mentoring, has tremendous benefit to the campus, and generally provides more fulfillment to the workers. Job satisfaction is a tremendous asset of any school. Copyright 2012 ASBO International 225

226. Thank you! Thank you for being here today and for your personal investment in bettering the lives of those we educate and care for Thank you for your personal commitment to enriching your skills HAVE A GREAT CONFERENCE! Copyright 2012 ASBO International 226