Finance 5342 Week 5 Part 3
This course has given me time to reflect on finance process in education. I have had the opportunity to gain knowledge about budget through my Wiki group. I have been able to communicate with my partners and work on assignments and discuss formulas. There have been plenty of occasions that I visited with my Assistant Superintendent of Business Services, Mrs. Tami Pierce, and our district finance department. It is great that this class has opened me up to have conversations about budgets, ADA, WADA, Ch. 41 Funds, INS Funds, State Target Revenue Funds, etc. I am now able to have some knowledge about a variety of topics focusing on budget.
I am very appreciative of Dr. Stephens and Dr. Arterbury because there interviews were phenomenal. They have shared many insightful information regarding budgets that are all applicable for being a future superintendent. The interviews also assisted my group and myself with the challenging assignments that we had to complete each week. It gave us a great chance to collaborate and work towards understanding finance. I noticed that through this class and conversations with colleagues that each district my have a strong Chief Financial Officer.
Superintendents must be able to work with the Board of Trustees and ensure that each are familiar with the written policies regarding budget. I personally have made some significant progress but know that I have much more knowledge to gain due to this class being five weeks. I was able to gain much information in five weeks and know that I must continue what this class has started for me.
Friday, December 16, 2011
Finance Week 5, Part 2
Finance 5342 Week 5 Part 2
The finance class has been challenging one for me. The self-evaluation gives me a great opportunity to really self-reflect on what knowledge I have gained and what areas I still need to improve. I am still looking to make some improvements with working collaboratively with the board of trustees and appropriate personnel to develop district budgets. I recently attended a budget workshop with the superintendent, central staff, and district principals. We worked together to develop a district vision statement for starters and eventually work together on budget. I felt it was a good experience because I am a principal and want more chances to work with our board of trustees.
I am competent with applying procedures for effective budget planning and management, effective account auditing, district procedures for ethical purchasing, manage resources according to district vision and priorities, develop and implement plans for using information and technology systems, apply legal concepts, regulations, and codes as required, and forecasting for personnel and budgetary. I am currently feeling competent about these items mentioned. I have began to get more hands-on experience with the budget process and building confidence with each exploration.
I feel that my strength areas are: use district and staff evaluation data for personnel policy development and decision making, apply knowledge associated with personnel management, including requirements related to certifying, recruiting, screening, selecting, evaluating, disciplining, reassigning, and dismissing personnel, and manage one's own time and the time of others to enhance district operations. These are all areas that I feel I have excelled in when working with budget.
The finance class has been challenging one for me. The self-evaluation gives me a great opportunity to really self-reflect on what knowledge I have gained and what areas I still need to improve. I am still looking to make some improvements with working collaboratively with the board of trustees and appropriate personnel to develop district budgets. I recently attended a budget workshop with the superintendent, central staff, and district principals. We worked together to develop a district vision statement for starters and eventually work together on budget. I felt it was a good experience because I am a principal and want more chances to work with our board of trustees.
I am competent with applying procedures for effective budget planning and management, effective account auditing, district procedures for ethical purchasing, manage resources according to district vision and priorities, develop and implement plans for using information and technology systems, apply legal concepts, regulations, and codes as required, and forecasting for personnel and budgetary. I am currently feeling competent about these items mentioned. I have began to get more hands-on experience with the budget process and building confidence with each exploration.
I feel that my strength areas are: use district and staff evaluation data for personnel policy development and decision making, apply knowledge associated with personnel management, including requirements related to certifying, recruiting, screening, selecting, evaluating, disciplining, reassigning, and dismissing personnel, and manage one's own time and the time of others to enhance district operations. These are all areas that I feel I have excelled in when working with budget.
Finance Week 5, Part 1
Finance Week 5 Part 1
Example 1- Standard 1.2 of the Code of Ethics states that, “the educator shall not knowingly misappropriate, divert, or use monies, personnel, property, or equipment committed to her or her charge for personal gain or advantage. An example would be a teacher collects money for student fund raising activity. The teacher turns the cash in to an administrator and the administrator doesn’t deposit the money but instead uses it for personal purposes.
Consequence- An educator should not misappropriate funds and there could be short and long term consequences due to this type of violation. This incident could be investigated and the educator could be put on administrative leave or terminated. If terminated, the administrator’s reputation could be damaged.
Preventive Action- The superintendent knows how to apply laws, policies, and procedures in a fair and reasonable manner. Provide proper training for procedures on depositing checks on a daily basis. Ensure a budgeting process that accounts for depositing money on a daily basis.
Example 2- Standard 1.3 of the Code of Ethics states that, “the educator shall not submit fraudulent requests for reimbursement, expenses, or pay. An example is an educator manufactures fake receipts to request reimbursement from district.
Consequence- Short term and long term consequences could result from this violation. Administrator could be placed on administrative leave pending an investigation. The educator could receive a written reprimand or terminated. If terminated, there would be a Code of Ethics violation filed with the Texas Education Agency.
Preventive Action- The superintendent knows how to model and promote the highest standard of conduct, ethical principles, and integrity in decision making, actions, and behaviors. School district should establish training for appropriate use of school funds.
Example 3- Standard 1.13 of the Code of Ethics states that, “the educator shall not consume alcoholic beverages on school property or during school activities when students are present. A teacher decided to drink an alcohol beverage on a school trip during her class lunch at a restaurant. The teacher drank while sitting at the table with her high school students.
Consequence- Short term and long term consequences resulted from this violation. The teacher was placed on administrative leave with pay pending an investigation. The teacher was then terminated and a Code of Ethics was filed with the Texas Education Agency.
Preventive Action- The superintendent knows how to monitor and address ethical issues impacting education. The district should inform faculty and staff about appropriate behavior and discuss Code of Ethics!
Example 4- Standard 2.1 of the Code of Ethics states that, “the educator shall not reveal confidential health or personnel information concerning colleagues unless disclosure serves lawful professional purposes or is required by law. A department leader shared with her department that a teacher would no longer be returning to school to work. The teacher was still an employee of the district and had been out on administrative leave.
Short term consequence was a written reprimand and for the department leader to share with the department that she gave misinformed information. The teacher is still an employee of the district and a substitute will work in the class until further notice.
Example 5- Standard 2.2 of the Code of Ethics states that, “the educator shall not harm others by knowingly making false statements about a colleague or the school system. An administrator was visiting with faculty and staff members on an individual basis spreading rumors. The administrator was implying that one of the other administrators had already accepted a job as a principal of another school.
Short term consequence was a written reprimand on professional communication. Administrators know to work together as professionals and not spread false information regarding colleagues. The administrator did file a grievance on the other for falsifying information.
Example 1- Standard 1.2 of the Code of Ethics states that, “the educator shall not knowingly misappropriate, divert, or use monies, personnel, property, or equipment committed to her or her charge for personal gain or advantage. An example would be a teacher collects money for student fund raising activity. The teacher turns the cash in to an administrator and the administrator doesn’t deposit the money but instead uses it for personal purposes.
Consequence- An educator should not misappropriate funds and there could be short and long term consequences due to this type of violation. This incident could be investigated and the educator could be put on administrative leave or terminated. If terminated, the administrator’s reputation could be damaged.
Preventive Action- The superintendent knows how to apply laws, policies, and procedures in a fair and reasonable manner. Provide proper training for procedures on depositing checks on a daily basis. Ensure a budgeting process that accounts for depositing money on a daily basis.
Example 2- Standard 1.3 of the Code of Ethics states that, “the educator shall not submit fraudulent requests for reimbursement, expenses, or pay. An example is an educator manufactures fake receipts to request reimbursement from district.
Consequence- Short term and long term consequences could result from this violation. Administrator could be placed on administrative leave pending an investigation. The educator could receive a written reprimand or terminated. If terminated, there would be a Code of Ethics violation filed with the Texas Education Agency.
Preventive Action- The superintendent knows how to model and promote the highest standard of conduct, ethical principles, and integrity in decision making, actions, and behaviors. School district should establish training for appropriate use of school funds.
Example 3- Standard 1.13 of the Code of Ethics states that, “the educator shall not consume alcoholic beverages on school property or during school activities when students are present. A teacher decided to drink an alcohol beverage on a school trip during her class lunch at a restaurant. The teacher drank while sitting at the table with her high school students.
Consequence- Short term and long term consequences resulted from this violation. The teacher was placed on administrative leave with pay pending an investigation. The teacher was then terminated and a Code of Ethics was filed with the Texas Education Agency.
Preventive Action- The superintendent knows how to monitor and address ethical issues impacting education. The district should inform faculty and staff about appropriate behavior and discuss Code of Ethics!
Example 4- Standard 2.1 of the Code of Ethics states that, “the educator shall not reveal confidential health or personnel information concerning colleagues unless disclosure serves lawful professional purposes or is required by law. A department leader shared with her department that a teacher would no longer be returning to school to work. The teacher was still an employee of the district and had been out on administrative leave.
Short term consequence was a written reprimand and for the department leader to share with the department that she gave misinformed information. The teacher is still an employee of the district and a substitute will work in the class until further notice.
Example 5- Standard 2.2 of the Code of Ethics states that, “the educator shall not harm others by knowingly making false statements about a colleague or the school system. An administrator was visiting with faculty and staff members on an individual basis spreading rumors. The administrator was implying that one of the other administrators had already accepted a job as a principal of another school.
Short term consequence was a written reprimand on professional communication. Administrators know to work together as professionals and not spread false information regarding colleagues. The administrator did file a grievance on the other for falsifying information.
Sunday, December 11, 2011
Finance Week 4, Part 3
In the EDLD 5342 week 4 lecture, Dr. Lu explains that differentiated staffing can be used to create increased efficiency by assigning teachers and other educators different responsibilities based on carefully prepared definitions of many teaching functions (EDLD 5342 Week 4 Lecture, Page1). Using this thinking to restructure professional responsibilities, school districts can work towards eliminating non-essential staff. This is especially important in current times where Texas school districts are receiving decreased funding. Campus as well as district leaders must examine all positions to determine if the responsibilities of one or more positions can be eliminated. The eliminated position responsibilities can then be divided among the remaining employees. One example of this would be to have instructional specialists, who have typically not been assigned to teach a classroom of students, teach at least half of one day. Instructional specialists are campus level employees who have been utilized to provide direct interventions for struggling students, write local assessments, observe and guide direct instruction at the campus level, and revise curriculum. Eliminating half of the instructional specialist position allows the district to eliminate half of a teaching position for every two instructional specialists. Instructional specialists would still be able to perform their duties but would only have half of the day to do so. This realignment of instructional specialist responsibilities would result in about a 20,000 dollar savings per instructional specialist. This savings could be significant when applied across a school district.
While the elimination of one half an instructional position appears to be pretty simple, a great deal of collaboration among central office curriculum professionals as well as among campus leaders must occur. All professionals must be able to communicate to all employees the need for the restructuring. Additionally, school districts must be able to ensure that all responsibilities are reassigned in the same manner from campus to campus and also be able to determine where gaps in performance might occur. Addressing these potential gaps will ensure the continued success of the district’s instructional program, even in the face of decreased budgets and the elimination of staff. Having a clear cut plan determining how to examine and address needs in the face of campus personnel restructuring will help to not only help the district save money but, the district will ensure that student needs continue to be met.
PART 3 REFLECTION
I felt that Dr. Lu Stephens did a wonderful job of explaining differentiated instruction during her interview. School districts are looking at a variety of strategies to address personnel and budget cuts. As a future superintendent, I realize that it takes a great amount of time to collaborate with key stakeholders to have crucial conversations about cutting positions. I think that during those crucial conversations, the goal is to see where can you cut positions and still be able to address the needs of the districts so that students are still going to be successful. It is a positive to be able to save money and still address the needs of the district. Of course, this puts an increase on significant positions workload. Serving as a principal, I have had the opportunity to visit with our superintendent and justify every position. We had a discussion that if we ever had to RIF, what areas would have the possibility to do so. I think it is an unfortunate time for education. We have an increase in accountability ratings and expectations and we are being provided with less funds from the state.
While the elimination of one half an instructional position appears to be pretty simple, a great deal of collaboration among central office curriculum professionals as well as among campus leaders must occur. All professionals must be able to communicate to all employees the need for the restructuring. Additionally, school districts must be able to ensure that all responsibilities are reassigned in the same manner from campus to campus and also be able to determine where gaps in performance might occur. Addressing these potential gaps will ensure the continued success of the district’s instructional program, even in the face of decreased budgets and the elimination of staff. Having a clear cut plan determining how to examine and address needs in the face of campus personnel restructuring will help to not only help the district save money but, the district will ensure that student needs continue to be met.
PART 3 REFLECTION
I felt that Dr. Lu Stephens did a wonderful job of explaining differentiated instruction during her interview. School districts are looking at a variety of strategies to address personnel and budget cuts. As a future superintendent, I realize that it takes a great amount of time to collaborate with key stakeholders to have crucial conversations about cutting positions. I think that during those crucial conversations, the goal is to see where can you cut positions and still be able to address the needs of the districts so that students are still going to be successful. It is a positive to be able to save money and still address the needs of the district. Of course, this puts an increase on significant positions workload. Serving as a principal, I have had the opportunity to visit with our superintendent and justify every position. We had a discussion that if we ever had to RIF, what areas would have the possibility to do so. I think it is an unfortunate time for education. We have an increase in accountability ratings and expectations and we are being provided with less funds from the state.
Finance Week 4, Part 2
Using 2009 District Snapshot data, our group has determined that the two districts are quite different.
District 1:
Student population: 830
2% AA
22% H
76% White
0% Other
43% Eco Dis
4% LEP
10% SPED
District 1 highlights:
Total Revenue per pupil: $10,529
Total Operational Expenditures per pupil: $8,611
Fund Balance: 2,552,074, 39% of 2008-09 budget
Average teacher salary: $39,771
Teacher average years of experience 13.3
Teacher turnover rate: 16.4
Student Progress Measures:
% Passing All tests taken 80
Average SAT 1043
% taking SAT 60.5
Attendance rate: 96.7
Longitudinal Dropout rate 1.9
District 2:
Student population: 32,326
7% AA
56% H
31% White
7% Other
54% Eco Dis
33% LEP
9% SPED
District 2 highlights:
Total Revenue per pupil: $10,316
Total Operational Expenditures per pupil: $8,908
Fund Balance: 42,780,035, 16% of 2008-09 budget
Average teacher salary: $50,307
Teacher turnover rate: 15.7
Teacher average years of experience 11.6
Student Progress Measures:
% Passing All tests taken 78
Average SAT 1058
% taking SAT 86
Attendance rate: 95.9
Longitudinal Dropout rate 10.2
When examining the two districts, district 2 is much larger than district 1. While the total revenue per pupil is only about $213 more in district 1, this represents a great deal less funding for district 2 because of the number of students the district serves. Additionally, district 2 must have to pay their teachers a greater salary to retain quality teachers as indicated by the higher teacher turnover rate and lower years of teacher experience in district 2, compared to district 1. This results in more revenue that must be allocated to operations and taken away from instruction. Teacher salaries are likely to be the most impacted when funding is decreased for district 2 especially considering that their current fund balance is only 16% of their 2008-09 budget, compared to 39% of district 1’s budget.
Both districts have similar percents of economically disadvantaged students; however, district 1 has a significantly less longitudinal dropout rate. While the two districts have fairly similar percent of students meeting standard on all TAKS tests taken, district 2 has a much larger percent taking the SAT test as well as a higher average total score. This would indicate that district 2 has a much more success with preparing students for college.
Dr. Lu Stephens mentioned in the week 4 EDLD 5342 lecture, “economy of scale” certainly plays a factor in student learning. “Economy of scale” is when increased size results in lower per unit cost. The state considers the "economy of scale" when calculating the WADA of each school district in an effort to provide additional funding to smaller school districts. Due to this concept of "economy of scale" students in a much larger school district are less expensive to educate than those in a rural environment. Larger districts are thought to have an advantage of creating greater efficiency due to a decreased cost per student. Dr. Stephens discussed that the larger district would be attract and retain excellent teachers. This is likely why the district is able to offer much higher salaries which likely has led to higher quality teachers. This is the best reason to support why district 2 has much fared much better on their college admissions indicators with a very similar percent of economically disadvantaged students.
PART 2 REFLECTION
Dr. Lu Stephens talked about economy of scale during her interview. She explained how larger districts benefit from economy of scale as opposed to smaller districts. I was able to get hands on experience with it from part two assignment. District 1 is much smaller with 830 students, while District 2 has 32,326 students. The assignment allowed me to see that District 1 (smaller) spent around 34% of its budget for Plant Services and other Operating Expenditures. District 2 (bigger) spent approximately 28%. District 2 was allowed to pay more money towards teacher salaries since they don’t have to use a high percentage towards Plant Services and other Operating Expenditures. District 2 also has a better chance of retaining quality teachers due to the salary they will receive. The starting salary will attract highly qualified teachers to their district. It was eye opening to see that both districts received around the same amount of money for students per class and tax rates. I wasn’t sure if the size of a district was considered when the amount of money for student per class was factored. I can clearly see that larger districts have the advantage when it comes to an economy of scale.
District 1:
Student population: 830
2% AA
22% H
76% White
0% Other
43% Eco Dis
4% LEP
10% SPED
District 1 highlights:
Total Revenue per pupil: $10,529
Total Operational Expenditures per pupil: $8,611
Fund Balance: 2,552,074, 39% of 2008-09 budget
Average teacher salary: $39,771
Teacher average years of experience 13.3
Teacher turnover rate: 16.4
Student Progress Measures:
% Passing All tests taken 80
Average SAT 1043
% taking SAT 60.5
Attendance rate: 96.7
Longitudinal Dropout rate 1.9
District 2:
Student population: 32,326
7% AA
56% H
31% White
7% Other
54% Eco Dis
33% LEP
9% SPED
District 2 highlights:
Total Revenue per pupil: $10,316
Total Operational Expenditures per pupil: $8,908
Fund Balance: 42,780,035, 16% of 2008-09 budget
Average teacher salary: $50,307
Teacher turnover rate: 15.7
Teacher average years of experience 11.6
Student Progress Measures:
% Passing All tests taken 78
Average SAT 1058
% taking SAT 86
Attendance rate: 95.9
Longitudinal Dropout rate 10.2
When examining the two districts, district 2 is much larger than district 1. While the total revenue per pupil is only about $213 more in district 1, this represents a great deal less funding for district 2 because of the number of students the district serves. Additionally, district 2 must have to pay their teachers a greater salary to retain quality teachers as indicated by the higher teacher turnover rate and lower years of teacher experience in district 2, compared to district 1. This results in more revenue that must be allocated to operations and taken away from instruction. Teacher salaries are likely to be the most impacted when funding is decreased for district 2 especially considering that their current fund balance is only 16% of their 2008-09 budget, compared to 39% of district 1’s budget.
Both districts have similar percents of economically disadvantaged students; however, district 1 has a significantly less longitudinal dropout rate. While the two districts have fairly similar percent of students meeting standard on all TAKS tests taken, district 2 has a much larger percent taking the SAT test as well as a higher average total score. This would indicate that district 2 has a much more success with preparing students for college.
Dr. Lu Stephens mentioned in the week 4 EDLD 5342 lecture, “economy of scale” certainly plays a factor in student learning. “Economy of scale” is when increased size results in lower per unit cost. The state considers the "economy of scale" when calculating the WADA of each school district in an effort to provide additional funding to smaller school districts. Due to this concept of "economy of scale" students in a much larger school district are less expensive to educate than those in a rural environment. Larger districts are thought to have an advantage of creating greater efficiency due to a decreased cost per student. Dr. Stephens discussed that the larger district would be attract and retain excellent teachers. This is likely why the district is able to offer much higher salaries which likely has led to higher quality teachers. This is the best reason to support why district 2 has much fared much better on their college admissions indicators with a very similar percent of economically disadvantaged students.
PART 2 REFLECTION
Dr. Lu Stephens talked about economy of scale during her interview. She explained how larger districts benefit from economy of scale as opposed to smaller districts. I was able to get hands on experience with it from part two assignment. District 1 is much smaller with 830 students, while District 2 has 32,326 students. The assignment allowed me to see that District 1 (smaller) spent around 34% of its budget for Plant Services and other Operating Expenditures. District 2 (bigger) spent approximately 28%. District 2 was allowed to pay more money towards teacher salaries since they don’t have to use a high percentage towards Plant Services and other Operating Expenditures. District 2 also has a better chance of retaining quality teachers due to the salary they will receive. The starting salary will attract highly qualified teachers to their district. It was eye opening to see that both districts received around the same amount of money for students per class and tax rates. I wasn’t sure if the size of a district was considered when the amount of money for student per class was factored. I can clearly see that larger districts have the advantage when it comes to an economy of scale.
Finance Week 4, Part 1
The FIRST (Financial Integrity Rating System of Texas) is a financial accountability system that measures the degree to which school districts and open-enrollment charters the quality of their financial management practices and their ability to maximize the performance of their financial resources. This system is mandated by Texas Administrative Code (TAC), Title 19, § 109.1001. From the state’s viewpoint, the school districts in Texas maximize the use of funds when they work to provide the largest allocation possible for direct instruction purposes. The system will also disclose the quality of local management and decision-making processes that impact the allocation of financial resources in Texas public schools. There are several important components of the FIRST system. Our group has determined reserve funds, transparency, and consistent assessment of districts across Texas to be the most critical areas the FIRST system.
Reserve Funds: Districts with a healthy fund balance are able to use these funds when experiencing decreased funding from the state and the district can address unexpected expenditures that are likely to occur from time to time. Reserve funds are a critical component of any Texas’s school budget in this date in time. School districts are, in fact, receiving less state funding and many districts are experiencing unexpected expenditures as a result of a year-long drought. The Board of Trustees as well as school district officials are responsible for ensuring that the district makes responsible financial decisions and that the district can remain solvent, even when unexpected factors influence funding. On March 16, 2011, a "To The Administrator Addressed" letter was sent to school districts to inform them of changes to the FIRST rating system so they will not be penalized for dipping into their reserve funds during the current biennium due to the current financial situation the state is facing.
Transparency: School districts are required to explain how tax payer funds are used to fund education. Not only are districts required to manage funds appropriately, they are also responsible for showing that those funds were used to deliver services to the student body and support a high quality education. Additionally, this system of funding must have checks and balances to ensure that district expenditures are in line with district goals as well as the adopted budget. Transparency is the critical component that ensures districts are spending funds intended and that interested parties can observe this function.
Consistency: Consistency is a very broad terms but, it is one of the most important components of the FIRST system. This component determines that all school districts in Texas are held accountable for the same measures when assessing district financial integrity and that the state uses the same methodology to examine the quality of school district management decisions.
PART 1 REFLECTION
According to Dr. Lu Stephens, districts are held accountable for the Academic Excellence Indicator System (AEIS) and Financial Integrity Rating System of Texas (FIRST). I personally think it is good that FIRST is directly related to school districts and their accordance in utilizing the most of funds for instruction purposes. Our group decided that reserve funds, transparency, and consistency were the three most important components for the FIRST system. The Assistant Superintendent of Business Services in my district, Mrs. Tami Pierce, shared some more valuable input regarding FIRST. She discussed with me unqualified opinion, having controls in place to be compliant, and keeping expenditures less than resources. Basically, she stressed to me the importance of maintaining an internal control in place. Also, Mrs. Pierce elaborated on having a good qualified report. In other words, was there anything that was a problem or unqualified in the report? If so, then it is not good and districts should want to focus on correcting what is unqualified. Overall, I was able to learn some valuable things about FIRST from valuable resources, reading assignments, Dr. Lu Stephens interview, Mrs. Pierce’s interview, and collaborating with my WIKI group and having a discussion to choose the top three critical areas of FIRST.
Reserve Funds: Districts with a healthy fund balance are able to use these funds when experiencing decreased funding from the state and the district can address unexpected expenditures that are likely to occur from time to time. Reserve funds are a critical component of any Texas’s school budget in this date in time. School districts are, in fact, receiving less state funding and many districts are experiencing unexpected expenditures as a result of a year-long drought. The Board of Trustees as well as school district officials are responsible for ensuring that the district makes responsible financial decisions and that the district can remain solvent, even when unexpected factors influence funding. On March 16, 2011, a "To The Administrator Addressed" letter was sent to school districts to inform them of changes to the FIRST rating system so they will not be penalized for dipping into their reserve funds during the current biennium due to the current financial situation the state is facing.
Transparency: School districts are required to explain how tax payer funds are used to fund education. Not only are districts required to manage funds appropriately, they are also responsible for showing that those funds were used to deliver services to the student body and support a high quality education. Additionally, this system of funding must have checks and balances to ensure that district expenditures are in line with district goals as well as the adopted budget. Transparency is the critical component that ensures districts are spending funds intended and that interested parties can observe this function.
Consistency: Consistency is a very broad terms but, it is one of the most important components of the FIRST system. This component determines that all school districts in Texas are held accountable for the same measures when assessing district financial integrity and that the state uses the same methodology to examine the quality of school district management decisions.
PART 1 REFLECTION
According to Dr. Lu Stephens, districts are held accountable for the Academic Excellence Indicator System (AEIS) and Financial Integrity Rating System of Texas (FIRST). I personally think it is good that FIRST is directly related to school districts and their accordance in utilizing the most of funds for instruction purposes. Our group decided that reserve funds, transparency, and consistency were the three most important components for the FIRST system. The Assistant Superintendent of Business Services in my district, Mrs. Tami Pierce, shared some more valuable input regarding FIRST. She discussed with me unqualified opinion, having controls in place to be compliant, and keeping expenditures less than resources. Basically, she stressed to me the importance of maintaining an internal control in place. Also, Mrs. Pierce elaborated on having a good qualified report. In other words, was there anything that was a problem or unqualified in the report? If so, then it is not good and districts should want to focus on correcting what is unqualified. Overall, I was able to learn some valuable things about FIRST from valuable resources, reading assignments, Dr. Lu Stephens interview, Mrs. Pierce’s interview, and collaborating with my WIKI group and having a discussion to choose the top three critical areas of FIRST.
Saturday, December 10, 2011
Finance Week 4, Part 4
I had the opportunity to interview our Assistant Superintendent of Business Services, Mrs. Tami Pierce, about pertinent information about our district financial system. Mrs. Pierce informed me that approximately 78% of the district’s budget is allocated for personnel. Our personnel salary ranges over 27 million dollars. Over the past five years, our retired superintendent, Mr. Greg Hayman, has had the district absorb positions as teachers have left the district, when it was possible. He has always mentioned that there were enormous budget cuts coming from our legislation for the upcoming years. Last year under our new superintendent, Mr. Mike Kuhrt, our district wanted to save 15% overall for the budget. Each department had to save 15% to help absorb the budget shortfall from the legislation. Our district ended up losing one million dollars from our fund balance. Our superintendent and board of trustees decided not to cut any positions last year and, of course, this year we will have to face the same challenges due to another anticipated budget shortfall. We are currently looking at differentiated staffing to accommodate some of the deficit. Our superintendent wants all campus principals to look at the possibility of shifting personnel to other campuses to continue to help our district be academically successful.
5% Increase
Giving our district a 5% salary increase can have both a positive and negative effect. It will definitely be positive by helping to build morale. Our district salary is above the state average, however, it is below the average starting salary for other districts in Region IV. A raise will definitely help in retaining teachers, as well as, also attracting new teachers or others with experience to our district. However, in order to get to a raise, we must go through the reduction in force (RIF) process. We would have to cut positions due to budget cuts handed down to us from legislation. Allowing our district to have a raise would result in a $1.35 million increase to the budget. This is currently not the time for any type of raise. With most districts utilizing some of their fund balance to maintain their budget, a raise would only be a rare occurrence, as just about all districts prepare for more anticipated budget cuts.
5% Increase
Giving our district a 5% salary increase can have both a positive and negative effect. It will definitely be positive by helping to build morale. Our district salary is above the state average, however, it is below the average starting salary for other districts in Region IV. A raise will definitely help in retaining teachers, as well as, also attracting new teachers or others with experience to our district. However, in order to get to a raise, we must go through the reduction in force (RIF) process. We would have to cut positions due to budget cuts handed down to us from legislation. Allowing our district to have a raise would result in a $1.35 million increase to the budget. This is currently not the time for any type of raise. With most districts utilizing some of their fund balance to maintain their budget, a raise would only be a rare occurrence, as just about all districts prepare for more anticipated budget cuts.
Tuesday, December 6, 2011
Week 4, Part 5
In interviewing the Assistant Superintendent of Business Services from Dayton ISD, Tammy Pierce, I was able to answer questions regarding how auditors are involved with school districts. Details from these conversations are detailed below:
1. How is an external auditor selected?
An external auditor can be selected on a request for qualifications. Districts can not go out and select one on a bid because they provide professional services. In other words, you can’t select an auditor based on low bids. A request for qualifications mean that an external auditor responds and provides a district with what qualifications make them qualified to conduct an audit. The auditors respond back to a district giving the qualifications that they have that makes them qualified. Auditors can, however, provide an estimate of what they think the audit is going to cost. Most auditors have been known to bill by the hour, due to calculate profit and to cover the actually time that they spent working on the audit. If the bill is too high, a school district has the option to contact other school districts and compare their request for qualifications. This provides an opportunity to see who other districts used and how much each district may have paid. Each school district wants to get a good deal and get someone that they can trust to review their financial documents.
2. How does the auditor conduct the audit?
An auditor comes in and needs a list of checks for the school year. School districts must show in all accounts where the check number began and ended for the fiscal school year. Auditors then do a random sampling from a list of checks given to them from the district. The district is in charge of giving the appropriate checks to the auditors that they request of them. Auditors are checking for proper coding for items like functions, object code, grant funds, adequate expenditure, etc. Also, they are normally looking for a reference with the check that makes it valid, as well as documentation regarding the purchase. In most cases, they may only check 50 checks out of 50,000. Furthermore, they may also be looking to see if there are any errors regarding any financial procedures. For example, did the error take place one time out of 50 or is it continuously a mistake in a specific area? Auditors can do further investigating if there is a certain area with mistakes such as more specific sampling in any area of concerns. Mrs. Pierce stated that auditors have also viewed fiscal reports provided to the school board, certain investments (quarterly investments), and if she in compliance with the laws and regulations . Normally, the auditors are in a district for about a week to look at fixed assets, inventory, and/or depreciation. The auditors and district can send information back and forth to one another once they leave after that week.
3. What does the audit conclude about district financial procedures and actions?
The audit company gives information to the district through opinion letters. They can give opinion letters for overall financial statements, program compliance, internal control structure, federal compliance, etc. These are all part of a single audit. A single audit act is what a government goes through when you receive a certain amount of dollars for federal assistance. This triggers a Single Audit Act, which means you have to do more investigating than, for instance, a smaller district where it would be a much simpler audit involving federal money.
4. How are the results communicated?
The auditor comes to the board meeting and gives a presentation of the report from the audit. If there were any findings, then he or she would report it to the board in a management letter. A management letter addresses some concerns that might focus on areas to strengthen systems in place for the district. In Dayton ISD, Mrs. Pierce assists principals in acquiring proper approval regarding purchase orders. These are just suggestions from the auditor that can help improve some areas that may be concerns. Also the board does have the option to go visit with the auditor about any concerns that they may have with the audit.
1. How is an external auditor selected?
An external auditor can be selected on a request for qualifications. Districts can not go out and select one on a bid because they provide professional services. In other words, you can’t select an auditor based on low bids. A request for qualifications mean that an external auditor responds and provides a district with what qualifications make them qualified to conduct an audit. The auditors respond back to a district giving the qualifications that they have that makes them qualified. Auditors can, however, provide an estimate of what they think the audit is going to cost. Most auditors have been known to bill by the hour, due to calculate profit and to cover the actually time that they spent working on the audit. If the bill is too high, a school district has the option to contact other school districts and compare their request for qualifications. This provides an opportunity to see who other districts used and how much each district may have paid. Each school district wants to get a good deal and get someone that they can trust to review their financial documents.
2. How does the auditor conduct the audit?
An auditor comes in and needs a list of checks for the school year. School districts must show in all accounts where the check number began and ended for the fiscal school year. Auditors then do a random sampling from a list of checks given to them from the district. The district is in charge of giving the appropriate checks to the auditors that they request of them. Auditors are checking for proper coding for items like functions, object code, grant funds, adequate expenditure, etc. Also, they are normally looking for a reference with the check that makes it valid, as well as documentation regarding the purchase. In most cases, they may only check 50 checks out of 50,000. Furthermore, they may also be looking to see if there are any errors regarding any financial procedures. For example, did the error take place one time out of 50 or is it continuously a mistake in a specific area? Auditors can do further investigating if there is a certain area with mistakes such as more specific sampling in any area of concerns. Mrs. Pierce stated that auditors have also viewed fiscal reports provided to the school board, certain investments (quarterly investments), and if she in compliance with the laws and regulations . Normally, the auditors are in a district for about a week to look at fixed assets, inventory, and/or depreciation. The auditors and district can send information back and forth to one another once they leave after that week.
3. What does the audit conclude about district financial procedures and actions?
The audit company gives information to the district through opinion letters. They can give opinion letters for overall financial statements, program compliance, internal control structure, federal compliance, etc. These are all part of a single audit. A single audit act is what a government goes through when you receive a certain amount of dollars for federal assistance. This triggers a Single Audit Act, which means you have to do more investigating than, for instance, a smaller district where it would be a much simpler audit involving federal money.
4. How are the results communicated?
The auditor comes to the board meeting and gives a presentation of the report from the audit. If there were any findings, then he or she would report it to the board in a management letter. A management letter addresses some concerns that might focus on areas to strengthen systems in place for the district. In Dayton ISD, Mrs. Pierce assists principals in acquiring proper approval regarding purchase orders. These are just suggestions from the auditor that can help improve some areas that may be concerns. Also the board does have the option to go visit with the auditor about any concerns that they may have with the audit.
Saturday, December 3, 2011
Finance Week 3, Part 4
Currently, the district I work in receives approximately thirty-four million dollars in revenue. From local property taxes, we received 42% ($13.9 million), 57% ($19.5 million) from state funds, and less than 1% ($75,000) from federal funds. The revenue is then allocated to different categories. Function 11, which is instruction, receives the largest allocation at approximately $19 million. Our district has focused on instruction the past few years and wants to ensure that horizontal and vertical alignment are taking place. Now, as we move to STAAR testing, instruction has been the focal point for rigor and differentiated teaching methods. District Operation (Function 51) is the second highest category which receives $4.3 million. Function 51 receives around 12% of the allocation. Function 23 receives approximately $1.6 million towards school leadership. The district wants to move from being a “good district” to a “great district”. Our district now has in place an Executive Director of Curriculum position. This position works collaboratively with principals and assists in developing our principals into instructional leaders. With this in mind, the district is spending money to ensure that effective leadership is being practiced.
According to my district’s summary of finances, our WADA is $5,456,266. State Compensatory Allotment receives $2.8 million. Compensatory education focuses on at-risk students and giving additional support to ensure that these students have a chance to be academically successful. Furthermore, the career and technology allotment is approximately $2.1 million and funding for special education is $1.7 million. My campus, specifically, has had a tremendous gain for about $700,000 allotted towards career and technology. The focus has been getting more students involved with career and technology education. Having more students involved with CTE will increase our revenue. My district, however, also received $1.4 million decrease in total tax collections from the previous year.
My district has been anticipating budget shortfall from the state for a few years. In preparation for this, we did not have to absorb any positions this past year. This can be mainly due to a fund balance that has over $12 million. Over the years, anytime someone left our district, we absorbed that position when it was possible. In my opinion, this was a smart move because it has helped us build a strong fund balance. There are still crucial decisions in the upcoming months about our anticipated budget shortfall and what our board of trustees will have to decide is most important for our student’s education.
According to my district’s summary of finances, our WADA is $5,456,266. State Compensatory Allotment receives $2.8 million. Compensatory education focuses on at-risk students and giving additional support to ensure that these students have a chance to be academically successful. Furthermore, the career and technology allotment is approximately $2.1 million and funding for special education is $1.7 million. My campus, specifically, has had a tremendous gain for about $700,000 allotted towards career and technology. The focus has been getting more students involved with career and technology education. Having more students involved with CTE will increase our revenue. My district, however, also received $1.4 million decrease in total tax collections from the previous year.
My district has been anticipating budget shortfall from the state for a few years. In preparation for this, we did not have to absorb any positions this past year. This can be mainly due to a fund balance that has over $12 million. Over the years, anytime someone left our district, we absorbed that position when it was possible. In my opinion, this was a smart move because it has helped us build a strong fund balance. There are still crucial decisions in the upcoming months about our anticipated budget shortfall and what our board of trustees will have to decide is most important for our student’s education.
Thursday, December 1, 2011
EDLD 5342 Week 3, Part 1
Analysis of district snapshots:
District 1 Economically Disadvantaged: 93.3%
District 2 Economically Disadvantaged: 20.7%
Total Refined ADA Adjusted for Decline District 1: 3,893
Total Refined ADA Adjusted for Decline District 2: 4,032
District 1 WADA: $ 5,555.815
District 2 WADA: $4,794.076
The district with the lower ADA receives a higher WADA in order to provide equity, equality and accessibility. The WADA formula is based on a formula that provides additional funding to districts based on the number of students involved in special programs such as Special Education, Career and Technology, and Gifted and Talented Education. District 1 has a higher WADA due to the fact that they have a higher number of students that fall into the State Compensatory Education category and have a higher number of students that fall into the additional funded programs listed above. Since District 1 has a higher need based on this information they receive a higher WADA than District 2. The WADA is higher for the district with the lower ADA so it can meet the needs of its students who (based on the information) have more educational needs than the district with the higher ADA.
District 1 Economically Disadvantaged: 93.3%
District 2 Economically Disadvantaged: 20.7%
Total Refined ADA Adjusted for Decline District 1: 3,893
Total Refined ADA Adjusted for Decline District 2: 4,032
District 1 WADA: $ 5,555.815
District 2 WADA: $4,794.076
The district with the lower ADA receives a higher WADA in order to provide equity, equality and accessibility. The WADA formula is based on a formula that provides additional funding to districts based on the number of students involved in special programs such as Special Education, Career and Technology, and Gifted and Talented Education. District 1 has a higher WADA due to the fact that they have a higher number of students that fall into the State Compensatory Education category and have a higher number of students that fall into the additional funded programs listed above. Since District 1 has a higher need based on this information they receive a higher WADA than District 2. The WADA is higher for the district with the lower ADA so it can meet the needs of its students who (based on the information) have more educational needs than the district with the higher ADA.
EDLD 5342 Week 3, Part 2
Revenue per WADA@Compressed Rate:
District 1: $5,044
District 2 : $7,206
Total target revenue for the M & O: This is calculated by multiplying the WADA by the WADA@Compressed Rate and then making adjustments for the transportation allottment and New Instructional Facilities Allotment:
District 1: 28,023,530 +$215,301 (transportation allotment) +$0 (NIFA)= $ 28,238,831
District 2: 34,546,111+$391,955 (transportation allotment) +$0 (NIFA)= $34,938,066
Neither district applied for NIFA.
Total number of teachers, librarians, nurses & counselors in each district.
District 1: 618 x (8%+43% of the total staff FTE)=315
District 2: 560 x (6%+47% of the total staff FTE)=297
Both districts have the same number of Total Teacher FTEs when looking at the chart. However, it is important to look closer at the information. The chart lists the total percentage of each category which can be added and together and then multiplied to the Total Staff FTE to calculate the number of teachers librarians, nurses & counselors in each district. In this scenario, District 1 has more staff members in order to meet the needs of their students. District 2 has a much higher property value than District 1. Both districts have the same compressed tax rate. However, the amount of money that each district receives from their M&O collections is vastly different with District 2 collecting much more.
District 1: $5,044
District 2 : $7,206
Total target revenue for the M & O: This is calculated by multiplying the WADA by the WADA@Compressed Rate and then making adjustments for the transportation allottment and New Instructional Facilities Allotment:
District 1: 28,023,530 +$215,301 (transportation allotment) +$0 (NIFA)= $ 28,238,831
District 2: 34,546,111+$391,955 (transportation allotment) +$0 (NIFA)= $34,938,066
Neither district applied for NIFA.
Total number of teachers, librarians, nurses & counselors in each district.
District 1: 618 x (8%+43% of the total staff FTE)=315
District 2: 560 x (6%+47% of the total staff FTE)=297
Both districts have the same number of Total Teacher FTEs when looking at the chart. However, it is important to look closer at the information. The chart lists the total percentage of each category which can be added and together and then multiplied to the Total Staff FTE to calculate the number of teachers librarians, nurses & counselors in each district. In this scenario, District 1 has more staff members in order to meet the needs of their students. District 2 has a much higher property value than District 1. Both districts have the same compressed tax rate. However, the amount of money that each district receives from their M&O collections is vastly different with District 2 collecting much more.
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