Board Financial

Oversight
Governing Board Online Training Module
General financial
responsibilities
Responsibilities of financial oversight and
monitoring of schools finances
Schools finances include:
Budget development and management
Accounting system development and management
Financial reporting
Safeguarding of assets
Audits
Oversight vs.
Management
The board as a whole provides financial oversight
usually through the Board Treasurer
School administration, typically defined as the
principal and other lead management, is
responsible for managing finances usually
through the Business Administrator
Board Treasurer and
Business Administrator
Responsibilities
Budget Development / Management
Board Treasurer Work with Business Administrator
to develop budget timelines; verify timelines are
being followed; review budget status through
regular financial reporting; assure that budget is
aligned with strategic goals.
Business Administrator Prepare, present, and
execute the budget in alignment with established
timelines and strategic goals.
Board Treasurer and
Business Administrator
Responsibilities
Accounting System Development / Management
Board Treasurer Assure that financial controls are
in place; periodically review to make sure financial
controls are being followed; assure that accounting
system is meeting schools needs.
Business Administrator Design and implement
financial controls; manage accounting system and
execute financial policies and procedure.
Board Treasurer and
Business Administrator
Responsibilities
Financial Reporting
Board Treasurer Review and understand regular financial
reports; monitor financial reports to track progress of school;
ask questions of management to clarify financial activity.
Business Administrator Prepare regular financial reports;
Reconcile accounting system regularly to ensure accuracy of
financial reports; Present financial reports to Board Treasurer
and others as needed; Submit all required financial
reports complete, on-time, and accurate to
authorizer, lender, and other required parties.
Board Treasurer and
Business Administrator
Responsibilities
Safeguarding of Assets
Board Treasurer Verify that the school has proper
insurance coverage in place; ensure that proper
financial controls and security measures for building
assets are in place.
Business Administrator Work with vendor(s) to
execute proper insurance coverages are in place for
the school; execute proper financial controls and
implement appropriate security measures for building
assets.
Board Treasurer and
Business Administrator
Responsibilities
Audit
Board Treasurer Review annual audit report and
compare to regular financial statements prepared
by Business Administrator; read management letter
and any recommendations in audit.
Business Administrator Prepare for audit;
coordinate audit and work with auditors while on-
site; present audit report to the board; implement
any recommendations and correct concerns from
audit.
Budget Development /
Management
Development
Understand sources of funding
Understand expenditures
Tie expenditure decisions to school goals
Monitoring
Regular budget vs. actual reporting
Regular update on changes to budget projections
Long-Range Planning
Plan for increasing financial health
Tie revenue and expenditure projections
to school goals
Accounting System
Development /
Management
Cash management
Purchasing
Accounts payable
Human resources
Buildings operation / contract oversight
Payroll
Payroll taxes
Benefits
PERA
Accounting System
Development /
Management
Internal controls
Segregation of duties
Financial Reporting
Management reporting
Balance sheet
Statement of revenues and expenditures vs. budget
Statement of cash flows
Other
Regulatory reporting
USOE reporting
FASB (Financial Accounting Standards Board)
TABOR
Grant reporting / Bondholder reporting / Other
reporting
Safeguarding of Assets
Proper recording and tracking of assets
Maintenance of adequate insurance
Security of cash on hand
Security of records on hand
Audit
Annual audit required
Contract with independent CPA firm
Review annual audit report and compare with
regular financial management reports
Read management letter with audit report
Source of Financial
Information at Your
School
Contract with authorizer
All annual financial reports, journals, ledgers,
vendor ledgers, and audits
All monthly financial reports, journals, ledgers,
and backup
Bond financing documents
Bylaws
Vendor contracts
Other School-Related
Entities
School Foundation
School facility corporation
Parent/teacher organizations
Educational Service Providers (ESPs)