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DEVELOPING A TRAINING PROGRAM FOR NEW LOCAL SCHOOL

BOOKKEEPERSMAY 3, 2017

AASBO Annual ConferenceKaren O’Bannon, CSFOMadison County Schoolskobannon@mcssk12.org

Training Program for Local School Bookkeepers

Professional Development:

• Four Times Per Year (Time Lines)April – May (Budget Preparation and End of School Checklist)

Summer Conference (Payroll/Accounting Manual Topics and Updates/Special Guests)

September (Fiscal Year End Checklist)

December (Calendar Year End)

• All Bookkeepers (Networking)

• Local Support (On Site Training and Job Shadowing)

• Financial Procedures Manual

Sample Agenda ~ Spring MeetingLocal School Accounting

Bookkeeper’s MeetingApril 19, 2016

9:00 AMCentral Office Auditorium

Introductions (New Bookkeepers) Computer Services Budgets Extended Day/Daycare Rates Physical Inventory End of School Checklist May Calendar Deadlines

**Important Date**Summer WorkshopJune 20 & June 21Career Technical Center Auditorium

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Sample Agenda ~ Summer ConferenceFINANCE MATTERS

Summer WorkshopJune 20 and June 21

Wednesday, June 20th

7:30 a.m. Sign In

7:45 – 8:00 a.m. Welcome by Superintendent

8:00 – 10:00 a.m. Alabama State Department – Dennis HeardFollowed by Questions and Answers from Audience

10:00 – 10:15 a.m. BREAK

10:15 – 12:00 p.m. State Examiners Office – Kathy WrenFollowed by Questions and Answers from Audience

12:00 – 12:15 p.m. BREAK

12:15 – 1:00 p.m. LUNCH Presentation – Karen O’Bannon2015 Audit Findings

Our WeaknessesOur StrengthsAuditor Recommendations for Improvement

1:00 – 2:45 p.m. Madison County Board of Education Financial PolicyBreaking it all Down – Principal and Bookkeeper ResponsibilitiesAdditional Information:Financial ReportsInternal AuditingEthics Policy

Karen O’Bannon, Chief Financial OfficerGena Groce, Accounting SupervisorJanet Elliott, Local School Accounting Supervisor

2:45 – 3:00 p.m. BREAK

3:00 – 4:00 p.m. Jim Owens – Motivational Speaker“Thriving on Changes”

Sample Agenda ~ Summer Conference

Thursday, June 21st

7:45 a.m. Sign In

8:00 – 9:30 a.m. General Meeting – Back to School – Janet Elliott

Review and Feedback from Wednesday – Your Thoughts?

Auditor Review Recommendations

9:30 9:45 a.m. BREAK

9:45 – 10:30 a.m. Payroll Issues – Payroll Manager

10:30 – 11:30 a.m. Round Table – Discussion

11:30 – 1:00 p.m. LUNCH

1:00 – 2:00 p.m. Workshop (Laptop brought from school)

Setting up Allocation Tracking

(Will need listing of teacher names)

Sample Checklist ~ September

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Sample Agenda ~ December Meeting

Local School AccountingBookkeeper’s Meeting

December 8, 20168:30 AM

Central Office Auditorium

Christmas Breakfast (Potluck) ARI Funds Calendar Year Close/1099 Vendors Coding Issues Payroll Issues Accounts Payable Issues Receipting Issues Miscellaneous Accounting Items

Contracts VS Personnel Actions Tickets – Ticket Reconciliations EZ Tickets Absences – AESOP Purchasing Cards My School Fees Deadlines

Mission of Budget Process

The mission of the budget process is to help decision makers make informed choices about the services and needs of a particular activity or local school function.

Elements of the Budget Process

Develop a Budget Consistent with Goals

Develop a process for preparing and adopting a budget/communication

Evaluate financial resources and prioritize needs

Prepare budget based on decisions from team

Evaluate Performance

Monitor, measure, evaluate, and report

Adjust or amend if necessary

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Budgeting for Activity Funds

Budgeting is the process of planning resources and prioritizing needs of an organization. In most cases, for a governmental entity the budget represents the legal authority to spend money.

The budget also provides an important tool for the control and evaluation of resources and the uses of those resources. It is a tool to evaluate financial performance by comparing budgeted and actual operations. Bottom line, the budget is linked to financial accountability.

Budget Responsibilities

Delegate responsibilities for the budget

(Teamwork)

The educational decisions and the expenditure of approved budget funds must be controlled by the appropriate sponsor.

The local school office (administrators and bookkeepers) responsibility is to assist with the organization and administration of the budget, to monitor and track spending within established guidelines.

BUDGETING CLASSROOM

INSTRUCTIONAL SUPPORT

(CIS) FUNDS

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Elements of CIS

Student Materials

Technology

Library Enhancement

Professional Development

Common Purchases

Classroom Instructional Support Funds

PERMISSIBLE EXPENDITURES. Monies allocated for classroom instructional support may be spent for classroom instructional support purposes only, to be used either by classroom teachers or students in each teacher’s respective classes. It shall be permissible to expend these monies on instructional equipment and electrical equipment which is actually utilized with students in the teacher’s classroom.

UNSPENT FUNDS. Any funds appropriated for classroom instructional support but not expended according to this section by the end of each fiscal year shall revert to the Education Trust Fund.

TRANSFER WITH TEACHER DISALLOWED. Classroom instructional support monies are to be expended on behalf of students at a specific school and are not transportable with the teacher if the teacher is transferred to another school.

ANNUAL AUDIT. All expenditures for classroom instructional support and related documents by each county and city board of education shall be subject to audit by the Examiners of Public Accounts/Private CPA Firm.

It’s the Law…Not the CSFO

Ala. Code 1975, §16-1-8.1

Student Materials (Teacher Fee) allocations may not be used to supplement common purchases (Ala. Code 1975, §16-1-8.1 (13)) note: $200 per unit for common purchases was appropriated in 2008. These funds have not been allocated since that time.

Student Materials (Teacher Fee) allocations are not subject to a vote by the budget committee.

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Budget Committee

Each school must have a budget committee.

The budget committee should be comprised of 5 members

Principal (or designee)

4 Teachers Elected Annually

Voting by Secret Balllot

Majority Vote

Budget Committee The committee should elect: chairperson secretary responsible for keeping minutes and actions taken to approve the

budgets during the secret balloting process.

The committee may form advisory committees.

The committee must propose a budget for CIS, excluding student materials/teacher fee.

Budgets for Library Enhancement funds are to be developed in consultation with the school’s media specialist.

Professional Development and Technology budgets should be consistent with the system’s PD and Technology Plans

Approval of Budgets

Proposed budgets should be submitted to teachers at a called meeting.

Teachers must be given at least two workdays to review the proposed budget prior to taking a vote.

Voting must be by secret ballot.

Budget must be approved by majority vote.

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Local School

Funds

Lines of AuthorityBoard of Education. The Board of Education adopts policies to govern the establishment and operation of all activity funds. The district’s auditors reviews these policies for sound accounting and reporting principles. The Board approves the budget and financial statements as recommended by the Superintendent.

Superintendent. The Superintendent is directly responsible to the Board of Education for administering all Board policies and recommends the budget and financial statements to the Board for approval.

Chief School Financial Officer. The Chief School Financial Officer has the overall responsibility for accounting for and reporting all funds, including district and student activity funds, to the Board. The Chief School Financial Officer is also responsible for implementing and enforcing appropriate internal control procedures as well as monitoring and managing the financial resources.

Principal. The Principal at each school is the activity fund supervisor and has overall responsibility for the operation of all activity funds, including collecting and depositing activity fund monies; approving disbursements of student activity fund monies; and adequately supervising all bookkeeping responsibilities. The activity fund supervisor should be a signatory to all disbursements, including checks drawn on the activity fund.

Fiduciary Responsibility of the Principal

Ultimately it is the Principal’s responsibility to ensure that funds are collected and disbursed in accordance with local board policies.

The Principal should be familiar with the Financial Procedures for the School District to have a basic understanding of the accounting regulations for schools. (mcssk12.org/Departments/Finance/Financial Procedures)

The Principal should work with the bookkeeper and staff when preparing the local school annual budgets. (April – May)

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Local School Activity FundsActivity funds are established to direct and account for monies available and used at the local school level.

Activity funds are unique to school districts. The distinction is based on the purpose of the funds, that is, the programs and activities supported by the funds .

The classifications which are commonly recognized are:

• district activity funds

• student activity funds

• parent support or school related organization funds

Public Local School FundsFunds received from public (tax) sources /appropriations for the

general operations of the local school under the control and direction of the Principal.

Public funds are restricted to the same legal requirements as system funds at the district level.

Funds are generally classified as “public” when the following criteria are met:

A) Money generated school-wide

B) Money used for all students instead of individual group

C) Money controlled by the Principal or a school employee

Public Funds - Revenue

• Admissions• Appropriations• Concessions• Commission• Dues & Fees – Required• Fines & Penalties• Fund Raisers*• Grants• Sales• Donations*

*In specific situations, these may be considered Non-Public

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Non-Public Local School Funds

Funds received by an organization’s or club’s sponsor or officer not usually used for the general operations of the school.

Non-Public funds are restricted to the intent and authorization of various organizations (their officers and members), and are not under the direct control of the Principal, although he/she has the authority to prohibit inappropriate expenditures.

Funds are generally classified as “non-public” when the following criteria are met:

A) Money generated by a particular group

B) Money used for that particular group

C) Money controlled by the students and/or a parental organization

Non-Public Funds - Revenue

• Dues & Fees – Self imposed by clubs or classes

• Fund Raisers*

• Donations*

• Accommodations*

• Other*

*In specific situations, these may be considered public funds

School Related Organizations

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Non-Public Activity Funds

Parent Support Organization Funds – (School Related Organizations) School districts and student groups are also increasingly benefited by affiliated organizations that support curricular, co curricular, and extracurricular activities.

Affiliated organizations include groups such as Parent-Teacher Associations (PTAs), Parent-Teacher Organizations (PTOs), school foundations, and athletic booster clubs. Contributions by these groups often include supplies, materials, equipment, and even school facilities, such as weight training rooms.

Financial records may be included in the school books and classified as non-public funds or may be maintained outside the school records depending on the board’s policy. Additional procedures should be in place for those records maintained outside the school books. (Only PTA/PTO Funds for MCBOE)

Specific Requirements

Parent organizations such as PTAs and PTOs that maintain their own financial records must provide:

Proof of employer identification number Annual audit report Financial records to the school’s auditors and authorized school

employees upon request Required financial reports Fidelity Bond for Treasurer

Again, a school employee may not hold a leadership role in a parent organization, i.e., President or Treasurer, if the funds are to remain “non-public”.

Standardized Account Codes – LEA Manual

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Principal’s

Activity Report

HIGH

SCHOOL

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MIDDLE

SCHOOL

ELEMENTARY

SCHOOL

Questions &

Answers