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

2. 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

3. 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?

4. 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?

5. 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!

6. 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?

7. 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

8. 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!!

9. 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.

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

11. 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.

12. 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!!

18. 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

22. 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?

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

27. 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.

28. 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?

29. 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?

30. Any Questions?
I can be reached at