Gahanna Jefferosn Treasurer Office Salary Study

Gahanna-Jefferson Public Schools Treasurer’s Staff Salary Study

Prepared February 14, 2014

By: K-12 Business Consulting, Inc. www.k12consulting.net Christopher Mohr, MBA, RSBA, CGFM - President Jeffrey McCuen, CPA - Associate

Table of Contents Project Overview ........................................................................................................................................................1

Gahanna-Jefferson Public Schools Overview .............................................................................................................1

Scope and Methodology .............................................................................................................................................2

Section One: Executive Summary ...............................................................................................................................3

Section Two: Compensation Comparisons .................................................................................................................4

Treasurer ................................................................................................................................................................4

Assistant Treasurer .................................................................................................................................................5

Accountant .............................................................................................................................................................6

Payroll Coordinator ................................................................................................................................................7

Payroll/Benefits Support ........................................................................................................................................8

Accounts Payable/Receivable.................................................................................................................................9

Treasurer Secretary ............................................................................................................................................. 10

Section Three: Appendix – Salary Information ........................................................................................................ 12

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Project Overview The Gahanna-Jefferson Public Schools Treasurer, Julio Valladares, engaged K12 Business Consultants, Inc. to conduct a review of the treasurer’s office employee compensation levels and to compare them to selected surrounding school districts. The information will be helpful to the organization as it makes decisions on setting compensation levels to attract and retain qualified staff as well as remain fiscally stable and efficient with its resources. The overall objective of the project is to compare salary packages to peer organizations and make recommendations based upon the data gathered.

Gahanna-Jefferson Public Schools Overview

The Gahanna-Jefferson Public School District (the District) is conveniently located in northeast Franklin County, adjacent to I-270 and approximately 8 miles from downtown Columbus. The district, which includes the City of Gahanna and parts of Jefferson and Mifflin townships, is a culturally diverse suburban area with about 35,000 residents. Approximately 7,000 students from kindergarten through grade 12 attend the district's seven elementary schools, three middle schools and one high school. Approximately 86% of the students graduating from Gahanna Lincoln High School are pursuing a two- or four-year post-secondary option, and 14% attend either vocational schools, the military or pursuing other opportunities. The elementary schools have approximately 450 students in each building. The middle schools have around 550-600 students per building and the high school level has around 2,330 students in attendance. The district also provides a 'big picture' view of education, going beyond schools and encompassing the community. A broad scope of academic, cultural and athletic programs abound for both students and adults. The Gahanna Concert Series featuring nationally known musicians, local community theater productions, the Gahanna City Recreation Department and Junior League athletic events, local religious groups and Columbus State Community College, all use the G-J facilities to provide services that enhance educational opportunities for the student body and the community.

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Scope and Methodology We contacted and received information from select school districts in cooperation with the Treasurer. The school districts in the study vary in student population, demographics, facilities and citizenry. The districts were selected as representative based on location in the central Ohio area and place Gahanna in the middle for student population and annual budget.

We obtained information from the following school districts: New Albany, Olentangy, Pickerington, Reynoldsburg, Upper Arlington, Westerville, and Worthington. All information was self-reported by the respective District.

Field work was conducted from January 2014 to February 2014 in the form of surveys, interviews, and follow up discussions. Periodic meetings and preliminary drafts were reviewed with the Treasurer and the final study was completed February 14, 2014.

We grouped the data into 7 position categories based on common job duties: Treasurer, Assistant Treasurer, Accountant, Payroll Coordinator, Payroll/Benefits Support, Accounts Payable/Receivable, and Treasurer Secretary.

We divided this report into three sections, Section One: Executive Summary, Section Two: Compensation Comparisons, and Section Three: an appendix of salary data gathered.

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Section One: Executive Summary The goal of a compensation system is to provide an organization the opportunity to attract and retain valued employees. However, compensation is just one of many factors that influence employees. Climate, culture, workload, and location are also key factors in a person’s decision of employment. Table 1-1 illustrates the staffing and size of the Districts selected as part of the peer group in this study. Several key operating indicators are listed so that the reader can gain a better understanding of the workload the respective Treasurer’s office staff may be experiencing.

Table 1-1 Size and Staffing Comparison

District Name

Treasurer's

Office Staff Students

District

Staff

Operating

Budget

Purchase

Orders

Processed

New Albany 7.0 4,758 620 56,420,925$ 3,177

Upper Arlington 7.0 5,786 750 79,149,778 7,653

Reynoldsburg 5.4 6,753 632 60,444,401 4,601

Gahanna 7.0 7,200 807 80,765,445 3,476

Worthington 10.0 9,626 1,219 119,658,012 6,860

Pickerington 8.0 10,205 946 97,363,069 6,464

Westerville 10.0 14,705 1,696 141,050,377 7,738

Olentangy 11.0 18,119 1,920 164,635,481 8,895

Source: District self reported; October 2013 Five Year Forecast

Gahanna falls in the middle of the peer group in terms of student population, annual budget, and District staffing level. The District is larger than New Albany, Upper Arlington, and Reynoldsburg, but smaller than Worthington, Pickerington, Westerville, and Olentangy. The results of the study indicate the District overall has a reasonable amount of staff and compensation levels for current employees. There are areas where the ability to attract future staff will be challenging due to lower than average starting salaries. Our recommendations for the office follow in Section Two of this report.

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Section Two: Compensation Comparisons

Treasurer The Treasurer serves as the Chief Financial Officer of the District and is directly hired by the Board. As such, most treasurer positions do not have ranges, but rather a total package is negotiated during the hiring process. The table below illustrates the total compensation packages reported by the peer districts, sorted in descending order of total compensation.

Table 2-1 Treasurer Compensation

District Name Base Salary

SERS

Pickup

Paid

Annuity

Paid

Medicare

Performance

Comp

Other

Comp Phone

Total

Compensation

Worthington 123,268 11.00% 26,315 1.45% 0.00% - 720 168,937

New Albany 132,000 11.00% - 1.45% 10.00% - 900 164,190

Upper Arlington 131,378 11.00% 13,138 1.45% 0.00% - - 162,508

Westerville 153,000 0.00% - 1.45% 0.00% - - 155,219

Gahanna 148,715 0.00% - 0.00% 2,000 - - 150,715

Olentangy 123,500 11.00% - 1.45% 0.00% - - 138,876

Reynoldsburg 99,450 11.00% 10,940 1.45% 0.00% 7,800 - 132,046

Pickerington 117,000 11.00% - 1.45% 0.00% - - 131,567

Chart 2-1 Treasurer Compensation

Compensation for the Treasurer position is in the middle of the comparison group and appears reasonable based on size and student population of peer districts. In addition, three of the treasurers are CPAs, two of which are compensated higher than Gahanna, and three have MBAs, including the Gahanna treasurer, two of which are compensated higher than Gahanna.

100,000

110,000

120,000

130,000

140,000

150,000

160,000

170,000

180,000

Pickerington Reynoldsburg Olentangy Gahanna Westerville UpperArlington

New Albany Worthington

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Assistant Treasurer The Assistant Treasurer manages day to day financial operations and serves as Treasurer in his/her absence. All peer Districts had an assistant treasurer with the exception of Reynoldsburg. Most of these positions reported salary ranges, although none had steps, so the table below reflects the total compensation package sorted in descending order by the beginning total compensation.

Table 2-2 Assistant Treasurer Compensation Olentangy 84,000 91,410 11.00% - 93,240 101,465

New Albany 77,000 80,000 11.00% - 5.00% 900 90,644 94,140

Westerville 80,000 105,000 11.00% - 88,800 116,550

Worthington 72,459 91,093 11.00% 2,790 83,526 104,210

Upper Arlington 78,000 78,000 0.00% 3,900 81,900 81,900

Pickerington 58,690 74,346 11.00% - 65,146 82,524

Gahanna 63,861 69,608 0.00% - 63,861 69,608

Chart 2-2 Assistant Treasurer Compensation

Recommendation #1 Review Assistant Treasurer Compensation The compensation for the Assistant Treasurer is the lowest among peer districts for both the beginning and ending total compensation amounts. Based on the size, staff levels, and operating budget, we would expect this position to be somewhat lower than the selected peers, however, we recommend monitoring this category to ensure it remains competitive to attract and retain qualified candidates.

50,000

60,000

70,000

80,000

90,000

100,000

110,000

120,000

Gahanna Pickerington UpperArlington

Worthington Westerville New Albany Olentangy

Beginning Ending

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Accountant The accountant category includes positions with job duties overseeing financial reporting and the various operations of accounting and payroll, performing reconciliations, cost studies, and other duties as assigned by the Treasurer. This position is generally exempt from unions and generally requires a higher educational degree than other treasurer office support staff. Although Gahanna does not currently have someone in this category, we have included the table below for illustrative purposes.

Table 2-3 Accountant Compensation Comparison

District Name Position Title FTE

Base

Beginning

Salary

Base

Ending

Salary

SERS

Pickup

Beginning

Total

Compensation

Ending Total

Compensation

New Albany Accounts Coordinator 1.0 68,080 68,080 0.00% 68,080 68,080

Olentangy Accountant 2.0 56,000 57,222 11.00% 62,160 63,516

Worthington Acquisition & Financial Reporting 1.0 51,750 73,778 0.00% 51,750 73,778

Reynoldsburg Accountant 0.8 40,000 40,000 0.00% 40,000 40,000

Chart 2-3 Accountant Compensation Comparison

Recommendation #2 Consider Adding 1 FTE as an Accountant Position The Treasurer’s Office total staffing level of 7.0 FTE appears reasonable in relation to the peer group; however we noted the absence of an accountant position. A District the size of Gahanna could benefit from an accountant position to help assistant in the preparation of financial statements, monitor the accounting functions, and perform other analysis and duties as needed by the Treasurer. Part of this position typically pays for itself by allowing the District to perform certain tasks internally as opposed to outsourcing. Enhanced internal and external reporting accomplished by this position would also reflect positively on the financial perception of the District. Reynoldsburg’s Accountant is only 0.8 FTE, explaining their lower compensation level. Most positions do not include retirement pickup, and we would recommend a salary range beginning in the upper $40,000’s and ending in the mid $60,000’s based on the size and structure of the District.

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Reynoldsburg Worthington Olentangy New Albany

Beginning Ending

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Payroll Coordinator Three of the seven peer districts employ a Payroll Coordinator to oversee and manage payroll and employee benefits. Gahanna does not currently employ this position. The chart below illustrates the compensation of the payroll coordinator.

Table 2-4 Payroll Coordinator Compensation Comparison


Base

Beginning

Salary

Base

Ending

Salary

SERS

Pickup

Beginning

Total

Compensation

Ending Total

Compensation

Worthington Compensation Supervisor 1.0 57,600 72,413 11.00% 67,033 83,475

Pickerington Payroll coordinator 1.0 46,384 54,912 0.00% 46,384 54,912

Westerville Payroll Coordinator 1.0 43,202 59,405 0.00% 43,202 59,405

Chart 2-4 Payroll Coordinator Compensation Comparison

Gahanna currently employs two payroll support staff, and due to the size of the District, we do not recommend adding a payroll coordinator position. However, the Treasurer may want to consider elevating one of the current payroll associate positions to a slightly higher coordinator position. Recommendation #3 Reclassify 1 Payroll Associate to Payroll Coordinator The reclassification of one of the associate positions into a coordinator position would provide several benefits. A higher compensation would provide incentive to retain qualified candidates, provide aspiration for the entry level employee to remain in the organization and move up, and provide a trainer and mentor for the entry level position. In addition, the upcoming changes to employee benefits as a result of the Affordable Care Act will result in more focus and demand in the payroll category.

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Westerville Pickerington Worthington

Beginning Ending

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Payroll/Benefits Support Gahanna currently has 2 FTE as payroll associates that perform payroll and employee benefit processing duties. The position currently has 22 steps (some steps include no change in pay). The Table below illustrates comparative compensation information in this category.

Table 2-5 Payroll/Benefits Support Staff Compensation Comparison

Gahanna Peer Average Difference

Base Rate (Step 0) 35,663 38,286 (2,623)

Ending Rate (Final Step) 51,886 50,788 1,098

# of Steps 22 18 4

Average $ Step Increase 737 826 (89)

Average % Step Increase 1.70% 2.00% -0.30%

Total Percent Salary Increase 45.50% 32.65% 12.85%

FTE 2.00 2.29 -0.29

Note: New Albany and Reynoldsburg do not step, so those districts are not

included in the averages related to step information

Chart 2-5 Payroll/Benefits Support Staff Compensation Comparison

Compensation in this category overall appears reasonable and competitive, but the base rate is lower than peers. This may cause difficulty in attracting qualified new candidates. In addition, the total number of steps is higher than peer average, but the percent increase in pay per step is lower. Gahanna has 2 FTE in this position while peer districts have on average 2.29 FTE. Recommendation #4 Increase the Base Rate and Decrease the Number of Steps Increasing the entry level compensation should allow Gahanna to better attract qualified candidates. Decreasing the number of steps without increasing the ending rate will allow the District to remain competitive with peers while not impacting total expenditures significantly.

30,000

35,000

40,000

45,000

50,000

55,000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Gahanna Peer Average

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Accounts Payable/Receivable Gahanna currently has 2 FTE in this position, an accounts payable associate and a student activity associate.

Table 2-6 Accounts Payable/Receivable Compensation Comparison


Base Rate (Step 0) 35,663 37,454 (1,791)

Ending Rate (Final Step) 51,886 49,191 2,695

# of Steps 22 18 4




FTE 2.00 2.43 -0.43

Note: New Albany and Reynoldsburg do not step, so those districts are not

included in the averages related to step information

Chart 2-6 Accounts Payable/Receivable Compensation Comparison

Gahanna currently classifies these positions in the same category as their payroll associates. This category again has a lower base rate but a higher ending rate, as well as more steps than peers. Gahanna’s 2 FTE is comparable to the peer average of 2.43. Recommendation #5 Consider classifying these employees separately from Payroll Associates The payroll associate position is significantly more demanding than an accounts payable/receivable position. The payroll process includes constant stress: employee changes, tax code and benefit changes, and weekly deadlines, and as such, should be compensated accordingly. We recommend placing this category in a separate pay classification than the payroll associates. As the graph illustrates, Gahanna can benefit from increasing the base rate in this category to better attract qualified candidates. However, it is currently paying a 6.6% premium compared to peers at the ending rate. We recommend reducing steps, especially at the later experience level, so that the position levels out at a more cost effective, while still competitive, rate.

30,000

35,000

40,000

45,000

50,000

55,000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22


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Treasurer Secretary

Table 2-7 Treasurer Secretary Compensation Comparison


Base Rate (Step 0) 35,663 38,011 (2,348)

Ending Rate (Final Step) 51,886 51,026 860

# of Steps 22 19 3




FTE 1.00 1.00 0.00

Note: Reynoldsburg does not step. New Albany and Westerville share secretary duties with AP/AR

Chart 2-7 Treasurer Secretary Comparison

Gahanna currently classifies this position in the same category as the other support staff. This category again has a lower base rate but a higher ending rate, as well as more steps than peers. The Buckeye Institute reported an average of $52,499 to $59,425 for the low and high salaries, respectively, for governmental executive assistants for fiscal year 2010. The compensation level for a Treasurer’s Secretary varies significantly between districts. A list of desired responsibilities for the position should be created and then compared to other districts to set a market rate compensation level. New Albany and Westerville secretaries split duties between administrative assistant and accounts payable/accounts receivable, and those salary ranges are from $35,880 to $59,286.

30,000

35,000

40,000

45,000

50,000

55,000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22


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Recommendation #6 Reorganize Job Duties and Titles We recommend adjusting job duties for current staff to fit their unique skill sets and to provide the necessary training to ensure success in the newly organized office. Our recommended structure is listed below, but the effectiveness will depend on the particular strengths of current staff as well as a reassignment of job duties. Recommended Structure of Treasurer’s office:

Treasurer Assistant Treasurer Secretary to the Treasurer Accountant Payroll Coordinator Payroll Associate Accounts Payable Associate

This structure does not increase the current FTE total and should produce a balanced and manageable workload while still maintaining adequate internal controls and segregation of duties.

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Section Three: Appendix – Salary Information

Appendix A-1 Treasurer

District Name Base Salary

SERS

Pickup

Vacation

Days

Personal

Days

Paid

Annuity

Paid

Medicare

Perf.

Comp

Other

Comp Phone

Ending Total

Compensation

Worthington 123,268 11% 20 3 26,315 1.45% 720 168,937

New Albany 132,000 11% 25 3 - 1.45% 10.00% 900 164,190

Upper Arlington 131,378 11% 25 3 13,138 1.45% 162,508

Westerville 153,000 0% 10 4 - 1.45% 155,219

Gahanna 148,715 0% 20 3 - 0.00% - - 148,715

Olentangy 123,500 11% 25 3 - 1.45% 138,876

Reynoldsburg 99,450 11% 30 3 10,940 1.45% 7,800 132,046

Pickerington 117,000 11% 20 3 - 1.45% 131,567

Appendix A-2 Assistant Treasurer

District Name

Base

Beginning

Salary

Base Ending

Salary

SERS

Pickup

Vacation

Days

Personal

Days

Paid

Annuity

Perf.

Comp Phone

Beginning

Total

Compensation

Ending Total

Compensation

Olentangy 84,000 91,410 11.00% 25 3 - 93,240 101,465

New Albany 77,000 80,000 11.00% 28 3 - 5.00% 900 90,644 94,140

Westerville 80,000 105,000 11.00% 16-26 4 - 88,800 116,550

Worthington 72,459 91,093 11.00% 20 3 2,790 83,526 104,210

Upper Arlington 78,000 78,000 0.00% 20 3 3,900 81,900 81,900

Pickerington 58,690 74,346 11.00% 20 3 - 65,146 82,524

Gahanna 63,861 69,608 0.00% 20 3 - 63,861 69,608

Appendix A-3 Accountant


Base

Beginning

Salary

Base

Ending

Salary

SERS

Pickup

Vacation

Days

Personal

Days

Beginning

Total

Comp.

Ending

Total

Comp.

New Albany Accounts Coordinator 1.0 68,080 68,080 0.00% 20 3 68,080 68,080

Olentangy Accountant 2.0 56,000 57,222 11.00% 25 3 62,160 63,516

Worthington Acquisition & Financial Reporting 1.0 51,750 73,778 0.00% 10-20 3 51,750 73,778

Reynoldsburg Accountant 0.8 40,000 40,000 0.00% 10-20 3 40,000 40,000

Appendix A-4 Payroll Coordinator


Base

Beginning

Salary

Base

Ending

Salary

SERS

Pickup

Vacation

Days

Personal

Days

Paid

Annuity

Beginning

Total

Comp.

Ending

Total

Comp.

Worthington Compensation Supervisor 1.0 57,600 72,413 11.00% 20 3 2,790 67,033 83,475

Pickerington Payroll coordinator 1.0 46,384 54,912 0.00% 20 3 - 46,384 54,912

Westerville Payroll Coordinator 1.0 43,202 59,405 0.00% 10-25 4 - 43,202 59,405

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Appendix A-5 Payroll/Benefits Support


Base

Beginning

Salary

Base

Ending

Salary Steps

Union

Member

Vacation

Days

Personal

Days

Beginning

Total

Comp.

Ending

Total

Comp.

Reynoldsburg Payroll 1.0 51,162 51,162 0 N 10-20 3 51,162 51,162

New Albany Payroll 2.0 50,777 57,866 0 N 20 3 50,777 57,866

Worthington Financial Associate 2.0 40,227 51,189 17 Y 10-20 3 40,227 51,189

Upper Arlington Payroll 2.0 36,348 48,477 10 Y 10-28 3 36,348 48,477

Pickerington Certified Payroll Specialist 1.0 36,192 44,720 16 N 15 3 36,192 44,720

Pickerington Classified Payroll Specialist 1.0 36,192 44,720 16 N 15 3 36,192 44,720

Westerville Payroll Associate I 1.0 35,880 54,059 18 N 10-25 4 35,880 54,059

Westerville Benefits Associate I 1.0 35,880 54,059 18 N 10-25 4 35,880 54,059

Gahanna Payroll Associate 1.0 35,663 51,886 22 N 11 3 35,663 51,886

Gahanna Payroll Associate 1.0 35,663 51,886 22 N 19 3 35,663 51,886

Westerville Payroll Associate II 1.0 33,092 48,630 18 N 10-25 4 33,092 48,630

Westerville Benefits Associate II 1.0 33,092 48,630 18 N 10-25 4 33,092 48,630

Olentangy Payroll 3.0 32,302 55,162 30 N 10 3 32,302 55,162

Appendix A-6 Accounts Receivable/Payable


Base

Beginning

Salary

Base

Ending

Salary Steps

Union

Member

Vacation

Days

Personal

Days

Beginning

Total

Comp.

Ending

Total

Comp.

New Albany Accounts Payable 2.0 54,363 59,286 0 N 20 3 54,363 59,286

Reynoldsburg Accounts Payable 1.0 45,000 45,000 0 N 10-20 3 45,000 45,000

Worthington Financial Associate 3.0 40,227 51,189 17 Y 10-20 3 40,227 51,189

Pickerington Budgetary Specialist (Acct. Clerk) 1.0 36,192 44,720 16 N 20 3 36,192 44,720

Pickerington Accounts Payable Specialist (Acct. Clerk)1.0 36,192 44,720 16 N 20 3 36,192 44,720

Pickerington Cashier/Accounts Receivable (Acct. Clerk)1.0 36,192 44,720 16 N 20 3 36,192 44,720

Westerville Secretary/Acts. Rec. 1.0 35,880 54,059 18 N 10-25 4 35,880 54,059

Gahanna Accounts Payable Associate 1.0 35,663 51,886 22 N 11 3 35,663 51,886

Gahanna Student Activity Associate 1.0 35,663 51,886 22 N 17 3 35,663 51,886

Westerville Accounts Payable I 2.0 33,946 47,507 17 Y 10-25 4 33,946 47,507

Upper Arlington Accounts Payable 1.0 33,423 44,382 10 Y 10-28 3 33,423 44,382

Upper Arlington Accounts Receivable 1.0 33,423 44,382 10 Y 10-28 3 33,423 44,382

Olentangy Accounts Payable 2.0 32,302 55,162 30 N 10 3 32,302 55,162

Olentangy Accounting 1.0 32,302 55,162 30 N 10 3 32,302 55,162

Appendix A-7 Treasurer Secretary


Base

Beginning

Salary

Base

Ending

Salary Steps

Union

Member

Vacation

Days

Personal

Days

Beginning

Total

Comp.

Ending

Total

Comp.

Reynoldsburg Secretary 1.0 42,791 42,791 0 N 10-20 3 42,791 42,791

Worthington Administrative Secretary 1.0 40,227 51,189 17 N 10-20 3 40,227 51,189

Upper Arlington Executive Assistant 1.0 35,062 50,095 10 N 10-28 3 39,070 54,103

Gahanna Treasurer Secretary 1.0 35,663 51,886 22 N 19 3 35,663 51,886

Olentangy Executive Secretary 1.0 32,302 55,162 30 N 10 3 32,302 55,162

Gahanna Jefferosn Treasurer Office Salary Study

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