Part 1: Reflection
Administrative leaders who are ethical and able to make ethical decisions are critical to the future of education. Education is a field in which ethical standards are still held in high regard. Practicing ethics in the area of finance requires one to demonstrate integrity and credibility because of handling public funds. It is imperative that school administrators know and follow the Texas Administrative Code of Ethics as well as refrain from any appearance of unethical behavior. Sometimes this means safeguards are put in place for administrators and all school empoyees. I have been taught by a mentor to "always do the right thing." Fortunately that is clear a lot of the time. At other times you must seek advice and research alternatives. Another belief that I use to determine what is right or wrong in the school setting is asking, "Is this best for the child(ren)?" Most of the time this helps make a decision clearer. By studying the TAC of Ethics, having discussions with my site supervisor and other leaders in the education field, and using other rresources this class has offered, i have learned a lot of specific information regarding ethics in the area of school finance.
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Thursday, September 22, 2011
Finance EDLD 5342 Week 5 Assignment - Part 1
Week 5 Part 1 Assignment
Standard 1.1. The educator shall not intentionally, knowingly, or recklessly engage in deceptive practices regarding official policies of the school district, educational institution, educator preparation program, the Texas Education Agency, or the State Board for Educator Certification (SBEC) and its certification process.
Example of Unethical Behavior: An administrator knows that it is time for one of his teacher’s certification renewal. The administrator falsifies certificates so that said teacher has enough hours to recertify.
Standard 1.2. The educator shall not knowingly misappropriate, divert, or use monies, personnel, property, or equipment committed to his or her charge for personal gain or advantage.
Example of Unethical Behavior: An administrator keeps the gate at sporting events. The money is occasionally taken home by the administrator instead of taking it back to the school and putting it in the safe. The administrator is guilty of taking some of the money.
Consequences: The actions will be reported to criminal authorities and the administrator may be allowed to resign or will be terminated. Upon resignation or dismissal, the administrator will be reported to SBEC and/ or TEA. The administrator could possibly lose his certification.
Preventative Action: Educators must apply and adhere to, laws, policies , and procedures in a fair and reasonable manner. (Supt. Competency) Administrators should always turn money they are handling over to another administrator or his designee. Money should never be taken to an employee’s home unless it has been counted in the presence of witnesses.
Standard 1.3. The educator shall not submit fraudulent requests for reimbursement, expenses, or pay.
Example of Unethical Behavior: While purchasing supplies for school, an administrator makes purchases for himself using the school credit card.
Consequences: The administrator may be asked to repay the misappropriated funds. He may also be asked to resign or will be terminated. Resignation or termination may be reported to SBEC and / or TEA. The administrator may possibly lose his certification.
Preventative Action: Administrators must model and promote the highest level of conduct, ethical principles, and integrity in decision making, actions and behaviors. (Supt. Competency) All purchases must be made only after receiving a signed purchase order from the employee’s superior. Credit card purchases must have detailed receipts that are scrutinized by the business manager.
Standard 2.3. The educator shall adhere to written local school board policies and state and federal laws regarding the hiring, evaluation, and dismissal of personnel.
Example of Unethical Behavior: An administrator evaluates teachers with whom he has a more personal relationship in a less stringent manner than he does those teachers that he is not as close to.
Consequences: The administrator may be reprimanded by his superior, and possibly be allowed to resign or to be terminated if the offense is extensive. If the offense is more subtle, the administrator may be removed from evaluative duties and may be required to attend professional development regarding evaluation and/or school ethics. Long range consequences may result in the administrator‘s loss of certification.
Preventative Action: Administrators that evaluate teachers should adhere to all policies and procedures in a fair and reasonable manner (Supt. Competency). A grievance plan shall be in place for employees that are evaluated.
Standard 2.4. The educator shall not interfere with a colleague's exercise of political, professional, or citizenship rights and responsibilities.
Example of Unethical Behavior: An administrator sends an email to teachers and staff members promoting a friend that is running for public office.
Standard 1.1. The educator shall not intentionally, knowingly, or recklessly engage in deceptive practices regarding official policies of the school district, educational institution, educator preparation program, the Texas Education Agency, or the State Board for Educator Certification (SBEC) and its certification process.
Example of Unethical Behavior: An administrator knows that it is time for one of his teacher’s certification renewal. The administrator falsifies certificates so that said teacher has enough hours to recertify.
Standard 1.2. The educator shall not knowingly misappropriate, divert, or use monies, personnel, property, or equipment committed to his or her charge for personal gain or advantage.
Example of Unethical Behavior: An administrator keeps the gate at sporting events. The money is occasionally taken home by the administrator instead of taking it back to the school and putting it in the safe. The administrator is guilty of taking some of the money.
Consequences: The actions will be reported to criminal authorities and the administrator may be allowed to resign or will be terminated. Upon resignation or dismissal, the administrator will be reported to SBEC and/ or TEA. The administrator could possibly lose his certification.
Preventative Action: Educators must apply and adhere to, laws, policies , and procedures in a fair and reasonable manner. (Supt. Competency) Administrators should always turn money they are handling over to another administrator or his designee. Money should never be taken to an employee’s home unless it has been counted in the presence of witnesses.
Standard 1.3. The educator shall not submit fraudulent requests for reimbursement, expenses, or pay.
Example of Unethical Behavior: While purchasing supplies for school, an administrator makes purchases for himself using the school credit card.
Consequences: The administrator may be asked to repay the misappropriated funds. He may also be asked to resign or will be terminated. Resignation or termination may be reported to SBEC and / or TEA. The administrator may possibly lose his certification.
Preventative Action: Administrators must model and promote the highest level of conduct, ethical principles, and integrity in decision making, actions and behaviors. (Supt. Competency) All purchases must be made only after receiving a signed purchase order from the employee’s superior. Credit card purchases must have detailed receipts that are scrutinized by the business manager.
Standard 2.3. The educator shall adhere to written local school board policies and state and federal laws regarding the hiring, evaluation, and dismissal of personnel.
Example of Unethical Behavior: An administrator evaluates teachers with whom he has a more personal relationship in a less stringent manner than he does those teachers that he is not as close to.
Consequences: The administrator may be reprimanded by his superior, and possibly be allowed to resign or to be terminated if the offense is extensive. If the offense is more subtle, the administrator may be removed from evaluative duties and may be required to attend professional development regarding evaluation and/or school ethics. Long range consequences may result in the administrator‘s loss of certification.
Preventative Action: Administrators that evaluate teachers should adhere to all policies and procedures in a fair and reasonable manner (Supt. Competency). A grievance plan shall be in place for employees that are evaluated.
Standard 2.4. The educator shall not interfere with a colleague's exercise of political, professional, or citizenship rights and responsibilities.
Example of Unethical Behavior: An administrator sends an email to teachers and staff members promoting a friend that is running for public office.
Wednesday, September 14, 2011
EDLD 5342 EXTERNAL AUDIT PROCEDURES WEEK 4 PART 5
EXTERNAL FINANCIAL AUDIT
After interviewing our Superintendent, I found that our external audit is also conducted very similarly to the way Dr. Lu explained it in the course lecture. First, proposals are solicited from area audit firms. The submitted proposals are evaluated, one is selected and a contracted is prepared. The proposal is then submitted to the Board of Trustees for approval.
Our preliminary audit is generally done in August and completed in early August after the fiscal year has closed out August 31. The auditing firm sends a list of the documents that they will examine and the procedures they will follow. They generally stay in our small district for one and a half to two days. The auditors ask questions regarding procedures and they review documents. They also ask questions of some members of the Board of Trustees to make sure that they have been included in the financial process. The auditors then write up their report that complies with state laws.
The auditors prepare an in-depth booklet that identifies strengths and weaknesses of the school’s financial accounting. They will also communicate any findings that the district is out of compliance in any areas should this be the case. The auditors also help determine the district’s fund balance.
At the November School Board meeting, the accounting firm will communicate the results to the Board of Trustees and any other attendees. The results will be reported at a public hearing, a copy of the report is sent to local media and one is submitted to the Texas Education Agency.
After interviewing our Superintendent, I found that our external audit is also conducted very similarly to the way Dr. Lu explained it in the course lecture. First, proposals are solicited from area audit firms. The submitted proposals are evaluated, one is selected and a contracted is prepared. The proposal is then submitted to the Board of Trustees for approval.
Our preliminary audit is generally done in August and completed in early August after the fiscal year has closed out August 31. The auditing firm sends a list of the documents that they will examine and the procedures they will follow. They generally stay in our small district for one and a half to two days. The auditors ask questions regarding procedures and they review documents. They also ask questions of some members of the Board of Trustees to make sure that they have been included in the financial process. The auditors then write up their report that complies with state laws.
The auditors prepare an in-depth booklet that identifies strengths and weaknesses of the school’s financial accounting. They will also communicate any findings that the district is out of compliance in any areas should this be the case. The auditors also help determine the district’s fund balance.
At the November School Board meeting, the accounting firm will communicate the results to the Board of Trustees and any other attendees. The results will be reported at a public hearing, a copy of the report is sent to local media and one is submitted to the Texas Education Agency.
EDLD 5342 Week 4 Part 4 Salaries
Our school district, in my opinion is very unique. Before discussing teacher salaries, I will tell you a little about the district and the teachers that work here. We are a small, 1A district that lies between the DFW metroplex and Waco from north to south and between Corsicana and Hillsboro from east to west. Our teachers could work in any of the cities mentioned and make more money. We have teachers that were born in this area and remained here as well as teachers that moved in or that commute from the cities to our district. All this is said to make the point that our school is a good place to work and salaries are not the only consideration.
In my school district salaries account for $2,681,475., which is 72.32% of our total budget. This percentage is slightly lower than the teachers’ salaries in surrounding, comparable districts. The difference is negligible and it seems that it makes little difference as we continually have quality teachers seeking jobs at our school which also has a low turnover rate. We are able to retain great teachers, many of which are hometown people that have children in our district.
A five percent salary increase for all personnel would align salaries with those of similar districts. It would increase teacher morale and possibly attract a greater number of teachers to our district. The negative effects of an increase such as this would far outweigh the positive. At this critical time of funding issues, the raise would not be seen favorably by taxpayers of our district. The general public would see this as an extravagance when we are limiting expenditures in so many other areas. Our budget could not support the increase as we have had a decrease in revenue and the only area to get this funding would be the fund balance which is stressed as it is. An across the board raise will need to be postponed until target revenue is raised either through state funds or an increase in ad valorem taxes.
In my school district salaries account for $2,681,475., which is 72.32% of our total budget. This percentage is slightly lower than the teachers’ salaries in surrounding, comparable districts. The difference is negligible and it seems that it makes little difference as we continually have quality teachers seeking jobs at our school which also has a low turnover rate. We are able to retain great teachers, many of which are hometown people that have children in our district.
A five percent salary increase for all personnel would align salaries with those of similar districts. It would increase teacher morale and possibly attract a greater number of teachers to our district. The negative effects of an increase such as this would far outweigh the positive. At this critical time of funding issues, the raise would not be seen favorably by taxpayers of our district. The general public would see this as an extravagance when we are limiting expenditures in so many other areas. Our budget could not support the increase as we have had a decrease in revenue and the only area to get this funding would be the fund balance which is stressed as it is. An across the board raise will need to be postponed until target revenue is raised either through state funds or an increase in ad valorem taxes.
Saturday, September 10, 2011
Analysing School finance in Two School Districts
EDLD 5342 - Week Three - Part Two
District 1 District 2
Revenue per Wada @ Compressed Rate $ 5,044.00 $ 7,206.00
WADA $ 5,555.815 $ 4,794.076
Target Revenue $ 28,023,530.86 $ 34,546,111.66
plus High School Allotment $ 264,196.00 $ 312,260.00
plus Salary Allotment $ 134,334.00 $ 129,563.00
TOTAL TARGET REVENUE $28,422,060.86 $34,987,934.66
Teachers, nurses, librarians 281 307
and counselors
District 1 District 2
Revenue per Wada @ Compressed Rate $ 5,044.00 $ 7,206.00
WADA $ 5,555.815 $ 4,794.076
Target Revenue $ 28,023,530.86 $ 34,546,111.66
plus High School Allotment $ 264,196.00 $ 312,260.00
plus Salary Allotment $ 134,334.00 $ 129,563.00
TOTAL TARGET REVENUE $28,422,060.86 $34,987,934.66
Teachers, nurses, librarians 281 307
and counselors
Review of FISD's Maintenance and Operations Fund
The source for funding for our maintenance and operations budget is two parts. Over seventy percent (70.29) of our funding comes from state revenue sources. The Foundation portion of the state funding, which is based on student count, weights, and tax effort, makes up over ninety percent of the state share. The other ten percent comes from the Available School Fund.
The other source for maintenance and operations funding comes from the local sources, primarily taxes. Earned interest, gifts, and delinquent tax collections are combined with the current year tax collections to generate this portion.
Our district was able to approve a balanced budget despite the funding cuts from the state. The district has over the past three years reduced its payroll costs through attrition and replacing more experienced teachers with younger, less experienced ones. Over two-thirds (68.75%) of the current budget is committed to payroll costs. While this is a significant portion of the budget, it is down considerably from years past. Another factor impacting the ability to maintain a balanced proposed budget is the district’s voters ratified a Tax Ratification Election (TRE) in 2008. This provides the district with much needed revenue. Approximately ten percent of this year’s projected revenue is the result of this funding source. The approval of the TRE is further enhanced because the district’s tax base grew by approximately nine percent from the previous year.
In addition to the impact of staff reductions over the years, the ability to control expenditures for the current year has been greatly impacted by the removal of capital outlay items of roof repairs and HVAC installations. While these situations might occur, they are not budgeted as they were in the prior year’s budget. Any emergency expenditures for these type projects would be met through budget amendments. Expenditures for lease purchase payments that were made last year are also removed.
The other source for maintenance and operations funding comes from the local sources, primarily taxes. Earned interest, gifts, and delinquent tax collections are combined with the current year tax collections to generate this portion.
Our district was able to approve a balanced budget despite the funding cuts from the state. The district has over the past three years reduced its payroll costs through attrition and replacing more experienced teachers with younger, less experienced ones. Over two-thirds (68.75%) of the current budget is committed to payroll costs. While this is a significant portion of the budget, it is down considerably from years past. Another factor impacting the ability to maintain a balanced proposed budget is the district’s voters ratified a Tax Ratification Election (TRE) in 2008. This provides the district with much needed revenue. Approximately ten percent of this year’s projected revenue is the result of this funding source. The approval of the TRE is further enhanced because the district’s tax base grew by approximately nine percent from the previous year.
In addition to the impact of staff reductions over the years, the ability to control expenditures for the current year has been greatly impacted by the removal of capital outlay items of roof repairs and HVAC installations. While these situations might occur, they are not budgeted as they were in the prior year’s budget. Any emergency expenditures for these type projects would be met through budget amendments. Expenditures for lease purchase payments that were made last year are also removed.
Saturday, September 3, 2011
Understanding TEA Budgeting Guidelines
TEA FINANCIAL ACCOUNTABILITY SYSTEM
RESOURCE GUIDE
2010
As I studied this resource guide, it was once again repeated to me that budgeting is a daunting task for which a superintendent must be adequately prepared. There are numerous resources to use in this process and the TEA Resource Guide is one of the most readily available and one of the most accessed by the superintendents and other financial officer that I have spoken with.
This document reiterates some of the other things I have learned in this finance course. Most importantly it states that a budget is the product of the planning process. In addition it describes the budget as an important tool for the control and evaluation of a school district’s sources and use of resources. And ultimately, an evaluation based upon budgeted and actual operations of a school can enlighten constituents as to the performance of a school district. I also learned that a budget is a continuous cycle of planning and evaluation used to achieve district goals.
There are several budgetary approaches. Line-item budgeting, performance budgeting, program and planning budgeting, zero-base budgeting and site-based budgeting are the ones explained in this document. Line-item budgeting, the type in which I am most familiar, is the type in which the financial officers base their expenditure requests upon historical expenditure and revenue data. Performance budgeting is, simply put, a budget where expenditures are based upon standard cost inputs multiplied by the number of units of an activity to be provided in that period. PPB, or program and program-planning budgeting is an approach where a variety of different budgeting systems which base expenditures primarily on programs of work and secondarily on objects. It is considered a transitional form of budgeting between traditional line-item and performance approaches. Zero-Base Budgeting (ZBB) is usually used on a periodic basis. The basic principle here is that the budget is prepared by dividing all of the operations into decision units. Then funds are allocated as a package. The final type of budgeting I wish to address is site-based budgeting. This process grants budgeting authority to principals at each campus to control a share of the budgeting process. This type budgeting is used along with one or more of previously mentioned types so that district-wide needs are also considered.
The next portions of the document include legal requirements that focus on local, state and TEA requirements, annual budgetary responsibilities and guidelines that provide roles, responsibilities and help in preparation of a budgeting calendar. The most important information I take from these sections is that to remain legal and timely – consult the manual. It is too easy to make errors that have enormous consequences.
The manual also provides in-depth explanations in estimating revenue and expenditures. Here again, I learned it is imperative to consult the most recent version of state documents and to keep up with new or revised laws and guidelines. I know I will use this information as a resource rather than attempt to memorize all the procedures. This policy has worked for me in other areas and it lessens the chances of making critical, yet avoidable mistakes.
There is a lot of new information that I have learned after studying this manual. I understand better the processes of planning, implementing and evaluating a budget and I feel that I will be able to use one or more of the budget types that were explained in this document. I also feel that I can put into place a goal driven budget based upon the needs of my students and other stakeholders. I also believe that I can adjust a budget throughout a school year when or if emergencies occur. In our small district, I have seen this done as one air conditioning unit replacement becomes of greater importance than something that may already have been earmarked to get an upgrade!
RESOURCE GUIDE
2010
As I studied this resource guide, it was once again repeated to me that budgeting is a daunting task for which a superintendent must be adequately prepared. There are numerous resources to use in this process and the TEA Resource Guide is one of the most readily available and one of the most accessed by the superintendents and other financial officer that I have spoken with.
This document reiterates some of the other things I have learned in this finance course. Most importantly it states that a budget is the product of the planning process. In addition it describes the budget as an important tool for the control and evaluation of a school district’s sources and use of resources. And ultimately, an evaluation based upon budgeted and actual operations of a school can enlighten constituents as to the performance of a school district. I also learned that a budget is a continuous cycle of planning and evaluation used to achieve district goals.
There are several budgetary approaches. Line-item budgeting, performance budgeting, program and planning budgeting, zero-base budgeting and site-based budgeting are the ones explained in this document. Line-item budgeting, the type in which I am most familiar, is the type in which the financial officers base their expenditure requests upon historical expenditure and revenue data. Performance budgeting is, simply put, a budget where expenditures are based upon standard cost inputs multiplied by the number of units of an activity to be provided in that period. PPB, or program and program-planning budgeting is an approach where a variety of different budgeting systems which base expenditures primarily on programs of work and secondarily on objects. It is considered a transitional form of budgeting between traditional line-item and performance approaches. Zero-Base Budgeting (ZBB) is usually used on a periodic basis. The basic principle here is that the budget is prepared by dividing all of the operations into decision units. Then funds are allocated as a package. The final type of budgeting I wish to address is site-based budgeting. This process grants budgeting authority to principals at each campus to control a share of the budgeting process. This type budgeting is used along with one or more of previously mentioned types so that district-wide needs are also considered.
The next portions of the document include legal requirements that focus on local, state and TEA requirements, annual budgetary responsibilities and guidelines that provide roles, responsibilities and help in preparation of a budgeting calendar. The most important information I take from these sections is that to remain legal and timely – consult the manual. It is too easy to make errors that have enormous consequences.
The manual also provides in-depth explanations in estimating revenue and expenditures. Here again, I learned it is imperative to consult the most recent version of state documents and to keep up with new or revised laws and guidelines. I know I will use this information as a resource rather than attempt to memorize all the procedures. This policy has worked for me in other areas and it lessens the chances of making critical, yet avoidable mistakes.
There is a lot of new information that I have learned after studying this manual. I understand better the processes of planning, implementing and evaluating a budget and I feel that I will be able to use one or more of the budget types that were explained in this document. I also feel that I can put into place a goal driven budget based upon the needs of my students and other stakeholders. I also believe that I can adjust a budget throughout a school year when or if emergencies occur. In our small district, I have seen this done as one air conditioning unit replacement becomes of greater importance than something that may already have been earmarked to get an upgrade!
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