Fiscal Oversight Module 1 - New York State School Boards ...
Fiscal Oversight Module 1 - New York State School Boards ...
Fiscal Oversight Module 1 - New York State School Boards ...
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<strong>Fiscal</strong> <strong>Oversight</strong> Fundamentals<br />
<strong>Module</strong> 1: <strong>School</strong> District Finances:<br />
Roles and Responsibilities<br />
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
The Five-Point Plan<br />
1. Requires training for school board<br />
members<br />
2. Created Audit Committee<br />
3. <strong>New</strong> Internal Audit Requirement<br />
4. Improved External (Independent) Audit<br />
5. Claims Auditor position strengthened
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Five <strong>Module</strong>s<br />
1. Roles and Responsibilities<br />
2. Building <strong>School</strong> District <strong>Fiscal</strong> Fitness<br />
3. Managing <strong>School</strong> District <strong>Fiscal</strong> Fitness<br />
4. Monitoring <strong>School</strong> District <strong>Fiscal</strong> Fitness<br />
5. Preventing Fraud, Waste and Abuse of<br />
District Resources
In this <strong>Module</strong>:<br />
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY
The Claims Auditor<br />
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
What is a Claim?<br />
• A claim is a legal document (invoice) from<br />
a vendor or contractor, that demands<br />
money in consideration for goods or<br />
services delivered by them to the school<br />
district based upon a properly executed<br />
purchase order<br />
• The claims approval process ensures that<br />
all claims submitted for payment are<br />
supported by sufficient documentation.
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
The Claims Auditor<br />
• The Education Law requires audit and approval of<br />
claims prior to payment<br />
• Union Free, Central & Small City school districts with<br />
enrollment of 10,000 or more and large city school<br />
districts may adopt a risk based or sampling<br />
methodology of auditing claims pursuant to board<br />
resolution (expires 7/1/14)<br />
– Methodology must reasonably assure all claims represented in<br />
sample are proper charges.<br />
– The Comptroller will review the effectiveness of such methods to<br />
determine if adequate accountability is maintained and issue<br />
report to governor and legislature by 1/15/14.
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
The Claims Auditor - Two Ways<br />
• Board’s responsibility is to audit all claims<br />
• May delegate this authority by establishing<br />
position by board resolution<br />
– Position is paid<br />
– All or nothing<br />
• Board cannot audit some claims and leave<br />
remainder to claims auditor<br />
– Can be abolished by board resolution
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Claims Auditor Duties<br />
• Audit each claim for payment against the<br />
district, verifying that:<br />
– The purchase is in compliance with law and<br />
regulation and is in accordance with district<br />
policy<br />
– All requisite forms are present and complete<br />
– All required authorization and signatures were<br />
obtained
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Claims Auditor Duties Cont’d<br />
• Audit each claim for payment against the<br />
district, verifying that:<br />
– The claim is for an actual and necessary<br />
expense<br />
– The expenditure is supported by a budgetary<br />
appropriation<br />
In simple terms, the Claims Auditor is telling the<br />
Treasurer that they have certified the claim to be<br />
true and accurate, and to issue payment to the<br />
claimant.
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Voucher Packet<br />
• Purchase order with appropriate authorization<br />
signed by the purchasing agent<br />
• Receiving report confirming that work was<br />
complete, goods/services were received<br />
satisfactorily<br />
• Documentation that purchasing agent approved<br />
voucher packet<br />
• Original invoice containing description, cost, and<br />
quantity of (if appropriate) goods/materials/svcs
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Conditions for Claims Approval<br />
In addition, the Claims Auditor will verify:<br />
• The receiving copy was signed and dated,<br />
indicating that the materials or services were<br />
received;<br />
– Suggested legend: “I hereby certify that the work has<br />
been completed and/or the materials delivered<br />
satisfactorily to the District on dates stated.”
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Conditions for Claims Approval<br />
• The charges are not duplicates of an<br />
item(s) already paid<br />
• The proposed payment is for a valid and<br />
legal purpose<br />
• The unit price billed (invoice) does not<br />
exceed the bid or contract authorization<br />
• There is no “cancellation” or “paid” stamp<br />
on original invoice
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Conditions for Claims Approval<br />
Cont’d<br />
• If the expenditure was required to be bid<br />
are there supporting documents?<br />
• Do goods or services being paid for<br />
appear reasonable (i.e. are utilities being<br />
paid only for school district addresses?)
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Conditions for Claims Approval<br />
Cont’d<br />
• Compare actual check to voucher packet<br />
approved, (i.e., address, amount.)<br />
• Authorize treasurer to sign checks<br />
• Suggested legend: “To the District Treasurer: I<br />
hereby certify that this claim has been audited and<br />
allowed in the total amount of $ . You are<br />
hereby authorized and directed to pay the claimant<br />
the amount allowed, and charge to the proper<br />
fund.”
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Claims Auditor Appointment<br />
• Can be anyone except:<br />
– Board member, clerk or treasurer<br />
– Superintendent<br />
– Business official or other district official (i.e.<br />
audit committee member)<br />
– Purchasing agent<br />
– Anyone associated with the business functions<br />
of the district or under the direct supervision of<br />
the superintendent<br />
– Internal and external auditor
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Claims Auditor Appointment<br />
• Can also delegate authority using:<br />
– Inter-municipal cooperative agreements<br />
– Shared services to the extent authorized by law<br />
– Independent contractors<br />
• Does not have to be a district resident, and<br />
may be an employee of the district or<br />
BOCES
The Audit Committee<br />
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Audit Committee Function<br />
• Advises the board on issues relating to the<br />
internal and external audits<br />
• Assists with interpreting complex financial<br />
documents, reports and recommendations<br />
• Responsible for asking the right questions<br />
and getting answers in order to keep the<br />
board informed<br />
– Communication between the audit committee,<br />
auditors, and board is key<br />
• Hold regularly scheduled meetings and report<br />
to the board at least once per year
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Audit Committee Duties<br />
• Assist in coordinating the external audit processes<br />
• Provide recommendations to the board regarding<br />
the appointment of the external auditor<br />
– Interview process<br />
• Meet with the external auditor prior to<br />
commencement of the audit<br />
– Understand the engagement letter<br />
– Discuss the audit plan and risk assessment<br />
– Review drafts or anticipated representation letters<br />
– Review drafts of anticipated audit opinions
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Audit Committee Duties<br />
• Providing recommendations to the school board<br />
regarding the acceptance of the external<br />
auditor's audit report and management letter<br />
• Reviewing a correction action plan developed in<br />
response to an audit report and assisting with<br />
the implementation of that plan
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Audit Committee Duties<br />
Also assists with the oversight of the internal<br />
audit function:<br />
– Provide recommendations regarding the<br />
appointment of the internal auditor<br />
– Review and discuss the annual internal audit<br />
plan to ensure that high risk areas and key<br />
control activities are periodically evaluated<br />
and tested
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Audit Committee Duties<br />
Also assists with the oversight of the internal<br />
audit function (cont’d):<br />
– Review all significant findings and<br />
recommendations of the internal auditor<br />
– Monitor the school district’s implementation of<br />
the internal auditor’s recommendations<br />
– Assist in the evaluation of the internal auditor<br />
by providing feedback on the performance of<br />
the internal audit function
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Audit Committee Meetings<br />
• Meetings should occur quarterly<br />
– Minimum is annually<br />
– Subject to Open Meetings Law<br />
– Can enter executive session as defined by law<br />
and commissioner’s regulations<br />
– Also can enter executive session for reasons<br />
pertaining to External Audit:<br />
• Meet with external auditor prior to audit<br />
• Review with external auditor the risk assessment<br />
• Receive and review the draft annual report and<br />
management letter (interpret with External Auditor)
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Audit Committee Composition<br />
• All, some, or none of the board<br />
– Minimum of three members<br />
– Members do not have to be a district resident<br />
– Do not need to be a financial professional<br />
• For non- board members, can be anyone except:<br />
– District employee<br />
– Recent employee (within two years)<br />
– Internal, External, or Claims Auditor<br />
– Close or immediate family member of employee or<br />
recent employee, trustee, contractor or anyone<br />
holding a business interest with the district
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Audit Committee Charter<br />
• Required<br />
• Submitted to board for approval<br />
• Establishes guidelines, procedures and<br />
requirements to allow committee to operate<br />
effectively<br />
• Should specify:<br />
– Purpose/mission<br />
– Duties/responsibilities<br />
– Membership and meeting frequency<br />
– Reporting requirements<br />
– Self -evaluation requirements
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Audit Committee Self-Evaluation<br />
Areas of Focus:<br />
– Working relationship with management,<br />
auditors, and board.<br />
– Participation level and contribution of<br />
members.<br />
– Do committee members possess the<br />
appropriate skills to do the job?<br />
– Is the size of the committee appropriate?<br />
– Does the committee meet regularly enough?
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Audit Committee Self-Evaluation<br />
Areas of Focus (cont’d):<br />
– Does the committee encourage a tone at the top?<br />
– Does the committee evaluate the internal auditor<br />
to ensure overall effectiveness and compliance<br />
with expectations?<br />
– Has the committee reviewed all significant control<br />
deficiencies identified by the internal/external<br />
auditors as well as management’s corrective<br />
action plan to address recommendations?
Internal Audit Function<br />
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Internal Audit Purpose<br />
• To assist the board in ensuring that<br />
financial risks are identified and that<br />
appropriate internal controls are in place to<br />
address these risks<br />
• The internal audit function assists the<br />
board in its oversight responsibility through<br />
its capacity as an objective third party
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Internal Audit Responsibilities<br />
• Development of an initial risk assessment<br />
of district operations including, but not<br />
limited to, a review of district financial<br />
policies, procedures and practices<br />
• An annual review and update of the risk<br />
assessment<br />
• Annual testing and evaluation of one or<br />
more areas of the district's internal<br />
controls
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Internal Audit Responsibilities (cont’d)<br />
• Report to the board with analysis of<br />
significant risk assessment findings<br />
• Recommend changes for strengthening<br />
controls and reducing identified risks<br />
• Agreement with auditor should be<br />
documented in an engagement letter.
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Areas of Focus for the<br />
Internal Audit<br />
• Payroll<br />
• Purchasing<br />
• Food service<br />
• Fixed asset policy<br />
• Extra-curricular activities fund<br />
• Budget transfers<br />
• Bank statements
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Risk Assessment – Evaluation<br />
• Need to identify the kind of risk in order to<br />
reduce the following risks:<br />
– That financial results will be manipulated by<br />
recording revenue or expenditures in the<br />
wrong year so that the resulting fund balance<br />
will meet projected targets<br />
– That Individual assets will be stolen<br />
– The risk of an unintentional error
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Internal Audit Evaluation<br />
Focus Areas:<br />
– Is the experience level of the auditor<br />
adequate?<br />
– Is the scope of the internal audit adequate?<br />
– Relationship with Audit Committee and<br />
Management.<br />
– Does the Internal Auditor meet with the Audit<br />
Committee to provide and discuss the audit<br />
plan prior to the audit?
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Internal Audit Evaluation<br />
Focus Areas:<br />
– Does the auditor report significant findings to<br />
the attention of the Audit Committee?<br />
– Is the frequency of reporting and level of<br />
detail sufficient to ensure effective action by<br />
management and the Audit Committee?
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Appointing Your Internal Auditor<br />
• Can be:<br />
– District staff (no responsibility to business<br />
operations, i.e. math teacher)<br />
– Inter-municipal cooperative agreements<br />
– Shared services to the extent authorized by law<br />
– Independent contractors<br />
• Is not required to be a financial profession or<br />
hold any financial certification (but should)
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Additional Resources for the<br />
Internal Audit:<br />
• The Institute of Internal Auditors:<br />
– www.theiia.org<br />
• Association of Certified Fraud Examiners<br />
– www.acfe.com/fraud/view.asp?ArticleID=13<br />
• The American Institute of CPAs<br />
– www.aicpa.org<br />
• Getting the Most Out of Your Internal Audit Function, NYS<br />
Office of the Comptroller:<br />
– http://www.osc.state.ny.us/localgov/pubs/internalauditfunction.pdf<br />
• Internal Controls, NYS Office of the Comptroller:<br />
– http://www.osc.state.ny.us/localgov/pubs/lgmg/internal_controls.pdf
External Audit Function<br />
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
External Audit Purpose<br />
• Section 2116-A of Ed. Law and Section<br />
170(r) of Commissioner Regulations<br />
require each board of education employing<br />
eight or more teachers to secure an<br />
annual audit by an independent auditor
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
External Audit Purpose<br />
• Principal goal of the external auditor is to<br />
opine on the district’s financial statements<br />
– Are the financial statements a fair presentation of<br />
the financial position of the district?<br />
• Audit report is presented to the board<br />
– Draft to audit committee<br />
– Management must prepare corrective action plan<br />
for any findings in audit report or management<br />
letter within 90 days, and begin implementing by<br />
end of next fiscal year
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Appointing Your External Auditor<br />
• District MUST use an RFP (request for<br />
competitive proposal) when hiring external<br />
auditors<br />
– Lowest responsible bidder<br />
• No engagement can exceed five years<br />
– After five years, new RFP must go out<br />
– Can use same firm if they win bid, but use<br />
different partner within firm<br />
• Existing contracts can continue until<br />
expiration
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
External Auditor Qualifications<br />
• MUST be a financial professional<br />
– Be registered and licensed to practice public<br />
accountancy in <strong>New</strong> <strong>York</strong> <strong>State</strong><br />
– Meet the qualifications requirement including<br />
the completion of at least 80 hours of<br />
continuing professional education every two<br />
years<br />
– Have an appropriate internal quality control<br />
system in place and undergo an external<br />
quality review at least once every three years
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
External Auditor Qualifications<br />
• MUST be a financial professional<br />
– Possess experience in audits of governmental<br />
entities and federal Single Audits<br />
– Meet government auditing standards<br />
– Possess sufficient staff to complete the audit<br />
in a timely manner<br />
– Be independent in fact and appearance
Treasurer<br />
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Treasurer<br />
• Appointed by the Board at re-org meeting<br />
• Deputy Treasurer is highly recommended<br />
to handle duties in absence of Treasurer<br />
• Must be bonded in an amount determined<br />
by the board<br />
– No set or recommended amount<br />
– Can be covered by a blanket bond<br />
• Conduit for monitoring fiscal condition
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Treasurer<br />
• Must provide quarterly budget status<br />
report (monthly if budget transfers have<br />
been made since last report).<br />
– Must show at least the status of the district’s<br />
revenue accounts and appropriation accounts<br />
required in the state budget form.<br />
• Estimated revenues, amounts received as<br />
appropriation accounts, original appropriations,<br />
transfers and adjustments, revised appropriations,<br />
expenditures to date, outstanding encumbrances,<br />
and unencumbered balances
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Treasurer<br />
• Provide monthly report for each fund<br />
showing:<br />
– Cash balance on hand at the beginning and<br />
end of month<br />
– Receipts by source<br />
– Total disbursements<br />
– Reconciliation with bank statements
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
The “Sixth Point”<br />
• Comptroller audits of school districts, BOCES<br />
and Charter <strong>School</strong>s<br />
• Focus on internal controls, policies, practices<br />
and operations to ensure adequate protection<br />
against fraud, waste and abuse.<br />
– Will not duplicate the work of the external auditor<br />
• Subsequent audits can occur and will be<br />
determined using a risk assessment process<br />
– Previous audit findings<br />
– Investigation of alleged improprieties<br />
– Other financial indicators
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Comptroller Audit Findings<br />
• Information Technology<br />
– Security issues relating to access of data and<br />
systems<br />
– Lack of policies for acceptable use standards for<br />
computers, internet and email<br />
– Access rights above what was required for job<br />
duties<br />
– No requirement to change user password<br />
– No audit logs to determine who, where and when<br />
information was access or changed. (similar to<br />
lack of segregation of duties)<br />
– Lack of data backup and disaster recovery plans
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Comptroller Audit Findings (cont’d)<br />
• Claims Audit Deficiencies<br />
– Incompatible business functions (authorize<br />
and approve a payment)<br />
– Reported to management rather than board<br />
– Deficient auditing of claims<br />
• Lack of documentation<br />
• Lack of department review or approval
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Comptroller Audit Findings (cont’d)<br />
• Payroll Issues<br />
– Separation Payments<br />
• Lack of Board oversight regarding accuracy of leave<br />
balances or that payments were made in accordance<br />
with employment contracts<br />
• Insufficient or lacking payroll policies<br />
– Payment for personal services without contracts<br />
• Again, related to inadequate internal controls and<br />
policies over payroll<br />
• Loose employee contracts did not specify entitlement to<br />
salary and benefits; as a result offending districts paid<br />
these officials far more than they were entitled
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Comptroller Audit Findings (cont’d)<br />
• Financial Condition Issues<br />
– Inaccurate recording and reporting of district<br />
financial data.<br />
• Prevented boards from monitoring the districts<br />
fiscal condition in a timely manner.<br />
• Over-expending appropriations and fund balances<br />
deteriorated, often to a deficit.<br />
– Over- reliance on fund balance, or using nonrecurring<br />
revenue sources to fund<br />
expenditures.
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Key Points to Remember<br />
• Board is ultimately accountable for<br />
oversight of district financial operations.<br />
– Failure of one component, i.e. Audit<br />
Committee, is still the board’s responsibility<br />
• Listen!<br />
– Follow up on anything that is not easily<br />
understood!<br />
• Seek Additional Training
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Additional Resources<br />
• NYS Comptroller’s Office Local<br />
Government and <strong>School</strong> Accountability<br />
landing page:<br />
– www.osc.state.ny.us/localgov/index.htm<br />
– Contains a wealth of information specific to<br />
maintaining and improving school district<br />
fiscal health such as:<br />
• <strong>School</strong> District Financial Toolboxes, which provide<br />
additional information on Claims Auditor, Audit<br />
Committee, Internal and External Audit functions
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Additional Resources<br />
• <strong>State</strong>ment on the Governance Role of a<br />
Trustee or Board Member, Board of<br />
Regents, USNY, November 2007<br />
http://www.regents.nysed.gov/about/state<br />
ment_governance.html
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Additional Resources<br />
• www.openbooknewyork.com<br />
– Provides financial transparency for all<br />
government institutions in NYS<br />
– Excellent resource for determining how school<br />
districts generate their revenues and what<br />
activities and services those revenues support<br />
• Can compare revenues/expenditures from other<br />
districts to your own to identify potential<br />
efficiencies
© 2012 <strong>New</strong> <strong>York</strong> <strong>State</strong> <strong>School</strong> <strong>Boards</strong> Association, Latham NY<br />
Additional Resources<br />
• NYS <strong>State</strong> Education Department Office of<br />
Education Management Services landing<br />
page:<br />
– www.emsc.nysed.gov/mgtserv/