Hand for Eval - WASBO · ACKNOWLEDGEMENT This updated handbook is being made available to all...

ACKNOWLEDGEMENT

This updated handbook is being made available to all active voting members of the Wisconsin Association of School Business Officials and Wisconsin School Districts free of charge courtesy of the Wisconsin Association of School Business Officials and the Wisconsin Department of Pub-lic Instruction.

After July 1, 2000 copies may be purchased or accessed at designated web sites.

The Wisconsin Association of School Business Officials wishes to express its appreciation to the Wisconsin Department of Public Instruction for its support of the development and distribution of this handbook. Further acknowledgement and appreciation is extended to the three consultants who undertook the task of updating, refining, and supplementing the information contained in this valuable resource manual. They are WASBO members Bambi Statz, Todd Gray and Howard Sampson.

PLEASE NOTEA copyright has been applied for. Reproduction of any part of the material contained within this handbook is forbidden unless permission is granted by the Executive Director of the Wisconsin Association of School Business Officials.

No commercial use may be made of this handbook without a contractual agreement with the Wis-consin Association of School Business Officials.

WASBO members, school districts and the Wisconsin Department of Public Instruction may copy all or any portions of this handbook for non-commercial use.

Copyright applied for July 1, 2000.

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TABLE OF CONTENTS

CHAPTER 1 - TODAY’S BUSINESS ADMINISTRATOR

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1MAJOR RESPONSIBILITIES OF THE BUSINESS ADMINISTRATOR . . . . . . . . . . . . . . 1THE BUSINESS ADMINISTRATOR AND THE ORGANIZATION. . . . . . . . . . . . . . . . . . 2LEGAL STATUS - LICENSING OF SCHOOL BUSINESS

ADMINISTRATORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4PI 3.55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4PI 3.61 SCHOOL BUSINESS ADMINISTRATOR - 08. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4ETHICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5WISCONSIN ASSOCIATION OF SCHOOL BUSINESS OFFICIALS (WASBO) CODE OF

ETHICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6ASSOCIATION OF SCHOOL BUSINESS OFFICIALS INTERNATIONAL (ASBO)

STANDARDS OF BEHAVIOR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6WASBO MISSION AND GOALS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7DETERMINING IF A PROPOSED ACTION IS ETHICAL . . . . . . . . . . . . . . . . . . . . . . . . . 8

CHECKLIST FOR DETERMINING IF A PROPOSED ACTION IS ETHICAL . . . . . 11LONG-RANGE FINANCIAL PLANNING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

CHAPTER 2 - FINANCIAL PLANNING, BUDGETING AND ONGOING FISCAL MANAGEMENT

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1FINANCIAL PLANNING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1FISCAL MANAGEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

CHECKLIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3LONG-RANGE FINANCIAL PLANNING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3BUDGETING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3ONGOING FISCAL MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

CHAPTER 3 - PERSONNEL MANAGEMENT

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1STAFFING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1RECORD MAINTENANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4INSERVICE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5CONTRACT ADMINISTRATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6LEGAL ASPECTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7PERFORMANCE APPRAISALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

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CHAPTER 4 - DATA PROCESSING AND MANAGEMENT INFORMATION SYSTEMS

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1ORGANIZING DATA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1COMPUTER SYSTEMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1THE NEEDS ASSESSMENT STUDY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3OPERATIONAL PROCEDURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8CHAPTER SUMMARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

CHAPTER 5 - FACILITY PLANNING AND CONSTRUCTION

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1LONG RANGE PLANNING/FEASIBILITY STUDY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

LONG RANGE PLANNING/FEASIBILITY STUDY CHECKLIST . . . . . . . . . . . . . . . 1

SELECTING AN ARCHITECT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2SELECTING AN ARCHITECT CHECKLIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

PLANNING/EDUCATIONAL SPECIFICATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3PLANNING/EDUCATIONAL SPECIFICATIONS CHECKLIST . . . . . . . . . . . . . . . . . 3

PROJECT BUDGET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4PROJECT BUDGET CHECKLIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

SITE SELECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5SITE SELECTION CHECKLIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

OWNER/CONTRACTOR RELATIONSHIP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6OWNER/CONTRACTOR RELATIONSHIP CHECKLIST. . . . . . . . . . . . . . . . . . . . . . . 6

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

CHAPTER 6 - INSURANCE/RISK MANAGEMENT

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1TYPES OF INSURANCE COVERAGE USUALLY INCLUDED . . . . . . . . . . . . . . . . . . . . 2INSURANCE/RISK MANAGEMENT EVALUATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

INSURANCE/RISK MANAGEMENT CHECKLIST . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

CHAPTER 7 - DEBT SERVICE MANAGEMENT

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1TEMPORARY BORROWING (TAX AND REVENUE ANTICIPATION NOTES) . . . . . . 1LONG-TERM BONDS AND NOTES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3STATE TRUST FUND LOAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

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LIMITED REFERENDUM-FREE BORROWING AUTHORITY UNDER WISCONSIN STATUTES 67.05(6A)(B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

PLANNING FOR BOND OR NOTE ISSUANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6ARBITRAGE AND DISCLOSURE RULES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10MUNICIPAL BOND DISCLOSURE REQUIREMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . 10

REFERENCES: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

CHAPTER 8 - STRATEGIC PLANNING

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1AN OVERVIEW OF THE STRATEGIC PLANNING PROCESS. . . . . . . . . . . . . . . . . . . . . 1DEFINITIONS OF TERMS INTEGRAL TO THE STRATEGIC PLANNING PROCESS . 3ROLE OF THE BUSINESS ADMINISTRATOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

CHECKLIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7ORGANIZING FOR PLANNING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7SITUATION AUDIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7EXTERNAL ANALYSIS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11INTERNAL ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11MISSION STATEMENT AND GOALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12OBJECTIVES AND ACTION PLANS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12COMMUNICATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12EVALUATION AND ADJUSTMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12STRATEGIC PLANNING CHECKLIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

CHAPTER 9 - OFFICE MANAGEMENT

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1STRUCTURING THE BUSINESS OFFICE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1WRITING A GOOD JOB DESCRIPTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1DEALING WITH A BARGAINING UNIT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2COMPENSATION GUIDELINES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2ESTABLISHING A SECRETARIAL JOB EVALUATION/PLACEMENT SYSTEM. . . . . 2DEVELOPING A SALARY STRUCTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4ESTABLISHING OFFICE PERFORMANCE EVALUATION

PROCEDURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5RESOLVING OFFICE PROBLEMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6CHANGES IN EMPLOYMENT STATUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

OFFICE MANAGEMENT CHECKLIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7BUSINESS OFFICE DUTIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7JOB DESCRIPTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7BARGAINING UNIT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8COMPENSATION POLICIES AND OBJECTIVES . . . . . . . . . . . . . . . . . . . . . . . . . 9SALARY STRUCTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9HANDLING CONFLICTS BETWEEN INDIVIDUALS OR GROUPS . . . . . . . . . 10SITUATIONS REQUIRING DISCIPLINARY ACTION . . . . . . . . . . . . . . . . . . . . . 11

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GRIEVANCE PROCEDURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11DISCHARGING AN EMPLOYEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13SENIORITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13TRANSFERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14PROMOTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15LAYOFFS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

CHAPTER 10 - CASH MANAGEMENT AND INVESTMENTS

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

SELF-EVALUATION GUIDE AND CHECKLIST FOR SETTING UP AN EFFECTIVE CASH MANAGEMENT AND INVESTMENT PROGRAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

STATE STATUTES AND BOARD POLICY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5RESOLUTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5BANK DEPOSITORIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6INVESTMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7CASH MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8TRAINING ORIENTATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

CHAPTER 11 - TRANSPORTATION

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1CONTRACTING WITH INDEPENDENT CARRIERS FOR PUPIL TRANSPORTATION 3

CONTRACTING WITH INDEPENDENT CARRIERS FOR PUPIL TRANSPORTATION CHECKLIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

ADMINISTRATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4ADMINISTRATION CHECKLIST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

OPERATIONS AND OFFICE MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8OPERATIONS AND OFFICE MANAGEMENT CHECKLIST . . . . . . . . . . . . . . . . . . . 8

FLEET MAINTENANCE AND OPERATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11FLEET MAINTENANCE AND OPERATIONS CHECKLIST . . . . . . . . . . . . . . . . . . . 11

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

CHAPTER 12 - NEGOTIATIONS

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1THE PSYCHOLOGY OF NEGOTATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1PROVISIONS OF WISCONSIN STATE STATUTE 111.70 . . . . . . . . . . . . . . . . . . . . . . . . . 3PREPARING FOR NEGOTIATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8RECORD KEEPING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8METHODOLOGY IN BARGAINING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

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CHOOSING YOUR SPOKESPERSON . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10CHOOSING YOUR NEGOTIATIONS COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11TRAINING IN NEGOTIATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12PREPARING FOR THE OPENING SESSION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13BARGAINING SESSIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15POST SETTLEMENT/IMPASSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18QUALIFIED ECONOMIC OFFER (QEO) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

PROFESSIONAL NEGOTIATIONS CHECKLIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

ORGANIZATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22RECORD KEEPING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22TRAINING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23PREPARATION FOR BARGAINING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23BARGAINING SESSIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24INITIAL ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24REGULAR BARGAINING SESSIONS AFTER THE INITIAL EXCHANGE OF PROPOSALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24POST SETTLEMENT PROCEDURES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

CHAPTER 13 - PURCHASING AND SUPPLY MANAGEMENT

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1PURCHASING ETHICS AND POLICIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1THE PURCHASING PROCESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4PURCHASING METHODS

(CENTRALIZATION/STANDARDIZATION) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5INFORMAL METHODS OF PURCHASING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6FORMAL METHODS OF PURCHASING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7PURCHASING/BUDGETING

(RELATED BUT SEPARATE FUNCTIONS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7PROCEDURAL MANUAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8LEASE VS. PURCHASE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8WAREHOUSE OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10DESIRABLE WAREHOUSE FEATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10STOCK LOCATOR SYSTEM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10INVENTORY CONTROL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11DISTRIBUTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11DELIVERY SCHEDULE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11CAPITAL OUTLAY INVENTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11BIDS, CONTRACTS, PUBLIC WORKS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

CHECKLIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

PURCHASING PROCEDURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15BIDDING AND QUOTATION PROCEDURES . . . . . . . . . . . . . . . . . . . . . . . . . . . 15PURCHASING PERSONNEL AND EQUIPMENT . . . . . . . . . . . . . . . . . . . . . . . . . 16RELATED PURCHASING FUNCTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

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CHAPTER 14 - OPERATIONS/MAINTENANCE OF FACILITIES

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1LONG- AND SHORT-RANGE PLANNING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

LONG- AND SHORT-RANGE PLANNING CHECKLIST. . . . . . . . . . . . . . . . . . . . . . . 3

GENERAL POLICIES AND PROCEDURES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4GENERAL POLICIES AND PROCEDURES CHECKLIST . . . . . . . . . . . . . . . . . . . . . . 4

PERSONNEL AND TRAINING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6PERSONNEL AND TRAINING CHECKLIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

DEPARTMENT OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8DEPARTMENT OPERATIONS CHECKLIST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

MAINTENANCE DEPARTMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10MAINTENANCE DEPARTMENT CHECKLIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

OPERATIONS AND HOUSEKEEPING DEPARTMENT. . . . . . . . . . . . . . . . . . . . . . . . . . 12OPERATIONS AND HOUSEKEEPING DEPARTMENTCHECKLIST. . . . . . . . . . . . 12

UPKEEP OF GROUNDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13UPKEEP OF GROUNDS CHECKLIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

PREVENTIVE MAINTENANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14PREVENTIVE MAINTENANCE CHECKLIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

ENVIRONMENTAL AND SAFETY PROGRAMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16ENVIRONMENTAL AND SAFETY PROGRAMS CHECKLIST . . . . . . . . . . . . . . . . 16

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

CHAPTER 15 - FOOD SERVICE MANAGEMENT

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1FOOD SERVICE MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

FOOD SERVICE MANAGEMENT CHECKLIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1FOOD SERVICE FINANCIAL MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

CHAPTER 16 - STATE FUNDING APPROACHES

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1FUNDING VARIABLES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2JUDGING BASIC STATE AID FORMULAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3STATE AID FORMULAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

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CHAPTER 17 - COMPUTER-AIDED FACILITIES MANAGEMENT

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1DEFINITON – WHAT IS CAFM? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1BENEFITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2CHARACTERISTICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2ELEMENTS OF CAFM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4SYSTEM REQUIREMETNS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5CADD TECHNOLOGY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6CONCLUSION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

CHAPTER 18 - SCHOOL ACCOUNTING

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1GOVERNMENTAL FUNDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1PROPRIETARY FUNDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1FIDUCIARY FUNDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1SPECIAL RESERVE FUNDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2GAAP ACCOUNT GROUPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2GASB 34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

CHECKLIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3ACCOUNTING SYSTEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3INTERNAL CONTROL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3ACCOUNTING PROCEDURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3RECEIPTS & DISBURSEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4BUDGET MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5BANKING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5PAYROLL RELATED ACCOUNTING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

CHAPTER 19 - SCHOOL FINANCIAL REPORTING

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1HISTORICAL PERSPECTIVE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1CURRENT & FUTURE PERSPECTIVE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2A PRACTICAL APPROACH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3SELF EVALUATION CHECKLIST FOR FINANCIAL REPORTING . . . . . . . . . . . . . . . . 4

CHECKLIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5LOCAL FINANCIAL OPERATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5STATE AND FEDERAL REPORTING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

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CHAPTER 20 - WISCONSIN SCHOOL DISTRICT AUDITING

SCHOOL DISTRICT AUDIT REQUIREMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1OBTAINING AUDIT SERVICES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2PREPARING FOR THE AUDIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4AUDIT RESPONSIBILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

CHECKLIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7ANNUAL AUDITING & RELATED REQUIREMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7PREPARING FOR THE AUDIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9YEAR-END REVIEW OF BALANCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10WORKING WITH THE AUDITORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

CHAPTER 21 - WISCONSIN RECORDS RETENTION SCHEDULE FOR SCHOOL DISTRICTS

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1MICROFILMING SCHOOL DISTRICT RECORDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2PUBLIC RECORDS LAW SECTION 19.21(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2NOTE ON PUPIL RECORDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2TO ADOPT THE SCHEDULE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3DESTRUCTION AND TRANSFER OF RECORDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3RECORDS OF PERMANENT HISTORICAL IMPORTANCE. . . . . . . . . . . . . . . . . . . . . . . 4

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

APPENDIX I - WISCONSIN STATUTE SECTION 19.21 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . 6

APPENDIX II - WISCONSIN STATUTE SECTION 118.125(1)(2M) AND (3). . . . . . . . . . . . . 7

APPENDIX III - LIST OF RELEVANT STATUTES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

APPENDIX IV - THE EDUCATION DEPARTMENT’S GENERAL ADMINISTRATIVE REGULATIONS (EDGAR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

CHAPTER 22 - AGENCY FUNDS/TRUST FUNDS(STUDENT ACTIVITY FUND)

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1AGENCY FUND ACCOUNTING OPERATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2POLICIES CONCERNING PUPIL ORGANIZATION FUNDS . . . . . . . . . . . . . . . . . . . . . . 3CRITERIA FOR EVALUATING THE INTERNAL CONTROL OF AUDITING . . . . . . . . 5

CHECKLIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

APPENDIX I - SAMPLE POLICY AND PROCEDURES FOR STUDENT BODY ACTIVITY ACCOUNTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

TOC-11

PROCEDURES FOR THE ADMINISTRATION/MANAGEMENT OF STUDENT ACTIVITY FUNDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

ADMINISTRATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

FACULTY/ADVISOR RESPONSIBILITIES FOR FUND RAISING ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

RETENTION OF RECORDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12CASH HANDLING PROCEDURES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

CHAPTER 23 - SITE-BASED MANAGEMENT

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1SITE-BASED MANAGEMENT: AN OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1IMPLEMENTING SITE-BASED MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3RESPONSIBILITIES OF THE SCHOOL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6RESPONSIBILITIES OF THE CENTRAL OFFICE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7THE ROLE OF THE BUSINESS MANAGER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9ADVANTAGES OF IMPLEMENTING SITE-BASED MANAGEMENT . . . . . . . . . . . . . 11DISADVANTAGES OF IMPLEMENTING SITE-BASED

MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

CHECKLIST FOR DELEGATING DECISION-MAKING AUTHORITY UNDER SITE-BASED MANAGEMENT: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

INSTRUCTION (CURRICULUM AND STUDENT LEARNING) . . . . . . . . . . . . . 16PERSONNEL (STAFFING). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16GENERAL MANAGEMENT & PLANNING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17BUILDING & FACILITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17STUDENT MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

CHAPTER 24 - BOARD OF EDUCATION & BUSINESS OFFICEPOLICIES AND PROCEDURES

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1DISTRICT ORGANIZATION AND INTERNAL POLICIES . . . . . . . . . . . . . . . . . . . . . . . . 2

DISTRICT ORGANIZATION AND INTERNAL POLICIES CHECKLIST. . . . . . . . . . 2

BOARD OF EDUCATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4BOARD OF EDUCATION/BUSINESS OFFICE CHECKLIST . . . . . . . . . . . . . . . . . . . 4

COMMUNITY RELATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11COMMUNITY RELATIONS CHECKLIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

BUSINESS AND NON-INSTRUCTIONAL OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . 18BUSINESS AND NON-INSTRUCTIONAL OPERATIONS CHECKLIST . . . . . . . . . 18

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SITES AND FACILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36SITES AND FACILITIES CHECKLIST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

CHAPTER 25 - IMPLEMENTING COMPUTERIZED MAINTENANCE MANAGEMENT PERSPECTIVE FROM A LARGER SCHOOL DISTRICT – A CASE STUDY

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1IMPLEMENTING CMMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2OBJECTIVES OF MAINTENANCE MANAGEMENT PROGRAM . . . . . . . . . . . . . . . . . . 6PROBLEMS IDENTIFIED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6EFFORTS TO REDUCE THE HIGH COST OF MAINTENANCE. . . . . . . . . . . . . . . . . . . . 7SUMMARY AND CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

CHAPTER 26 - PAYROLL MANAGEMENT

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1GENERAL ORGANIZATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1DEDUCTIONS/BENEFIT MAINTENANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6LEAVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12FAIR LABOR STANDARD ACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15TERMINATIONS/RESIGNATIONS/RETIREMENTS . . . . . . . . . . . . . . . . . . . . . . 16

REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

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CHAPTER 1

TODAY’S BUSINESS ADMINISTRATOR

INTRODUCTION

The educational work environment is affected by a constant and accelerating process of change. Politics, new technologies and products, greater understanding of how organizations function and how people learn, the actions of special interest groups, and growing economic pressures, repre-sent some of the forces stimulating the change process. These forces also create challenges for the person responsible for the business functions of school districts-TODAY’S BUSINESS ADMINISTRATOR.

Today’s Business Administrator assumes many responsibilities and the role differs among school districts in the state. Historic patterns of responsibility, the size of the district, community politics, the organizational philosophy, and the competencies of the individual, all influence the business administrator’s role. Although no two school districts are identical, there are basic characteristics common to Today’s Business Administrator.

I. MAJOR RESPONSIBILITIES OF THE BUSINESS ADMINISTRATOR

Major responsibilities common to most school business officials include financial man-agement, personnel management, technology, facilities, and other ancillary services such as transportation and food services. It is not unusual for the experience of a school busi-ness manager in any given day to involve dealing with issues from each of these catego-ries. This requires the ability to juggle multiple tasks and to constantly realign priorities.

Responsibility for these diverse areas involves working with different groups of people both internal and external to the organization. Dealing effectively with key stakeholders around each of these issues requires a great deal of knowledge and skill. In addition to having the technical background in each area of responsibility, the effective school busi-ness administrator must have an understanding of the “big picture” with full appreciation of how the services that he or she supervises facilitate the overall needs of the educational enterprise. Good human relation and communication skills are vital to successful business administration as well.

Managing the “business” of the organization is not an end in itself. To be effective, the business administrator must have a clear understanding of the district's primary educa-tional goals and work closely with the instructional staff to promote the best education the community can afford. The education of children is the primary business of the district, and the business administrator’s energies must constantly focus on achieving that mission.

The table on the following page outlines the specific responsibilities and the primary stakeholders inherent in each of these major areas as outlined by Cecilia DiBella, Ed.D., in a School Business Affairs article entitled, Leading People, Managing Processes: School Business Administrators in the 21st Century.

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II. THE BUSINESS ADMINISTRATOR AND THE ORGANIZATION

The business administrator is a highly qualified member of the district’s top administrative team. Reporting directly to the superintendent, the business administrator fulfills multiple responsibilities to the superintendent, the Board of Education, and the school staff.

In smaller communities the superintendent may be responsible for the district’s business functions, while in larger districts, the business administrator may direct the efforts of sev-eral hundred people. Regardless, the functions cannot be properly discharged unless the

Responsibilities and Spheres of Involvement

Responsibilities: ParentsSchoolStaff

Central Office Staff

Town Officials

Vendors Specialists

Financial Management

• Budget development and management X X X

• Accounting and internal controls X X X

• Contracts and grants X X X X X

• Reporting X X X X

• Audit X X

• Purchasing X X X X

Personnel Management

• Wage and benefit administration X X

• Collective bargaining X X X

• Payroll X X X

• Recruitment and hiring X X X

• Training X X X X

Technology

• Hardware and software purchasing X X X X X

• Network administration X X X

• Telecommunications administration X X X X

• Maintenance X X

• Training X X

Facilities

• Maintenance and custodial services X X

• Safety and security X X X X X

• Air quality X X X X X

• Capital planning X X X X

• Renovation and rehabilitation X X X X

Ancillary Services

• Transportation X X X X

• Food services X X X X

Source: DiBella, Cecilia, Leading People, Managing Processes: School Business Administrators in the 21st Century, School Business Affairs, December 1999.

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business administrator involves those responsible for implementation in a process that allows them to share in the decision making process. The business administrator must cre-ate teams of people and be a team player. Being a “team player” means creating, support-ing, and belonging to teams of people, not managing teams “at a distance.”

The purpose of creating teams is to accomplish the goals of the organization and make accomplishment personally satisfying to team members. Maintaining a balance between organizational goals and the personal satisfaction of employees is a critical task of the business administrator. Developing an organizational design that addresses business func-tions, and placing people within the structure so they can perform according to their tal-ents and abilities, requires great skill. Creating teams that are involved in the development of objectives, share accountability, and effectively evaluate results, provides a constant challenge to the business administrator.

Developing effective and efficient teams means that the business administrator must also be a teacher. People need to be trained to function as teams and then continue to be edu-cated regarding changes affecting their responsibilities. In this sense, the business admin-istrator must be an advocate for the continuing education of individuals within the business division and throughout the organization.

Being responsible for the “business” of the organization provides the business administra-tor with information critical to the district's operation. Making that information accessible in an open, ethical, and responsible fashion allows people in the district to perform their responsibilities and take advantage of their talents. It also provides community members with current information that allows them to contribute to the decision-making process and remain confident of the district’s integrity. This also means that confidential informa-tion will be handled in a fashion that is required by law, protective of the organization’s integrity, and within the district’s policies and procedures.

Achieving the mission of educating children requires the establishment of policies and procedures. The business administrator is a primary initiator of policies and procedures, and serves as a guide and interpreter to those who implement and are affected by them. Close contacts with those who implement policies and procedures on a day-to-day basis provides the business administrator with information necessary to recommend modifica-tions responsive to changes occurring “in the field”. It also places the business administra-tor in the position of “provost marshal”, making sure that sound policies and procedures are followed and meet the legal, ethical, and philosophical guidelines within which they were established.

Regulating the implementation of policies and procedures must not be done in a “heavy handed” fashion. Today’s business administrator must ensure that every staff activity is directed toward improving educational opportunities for children. As such, the business division serves to support the educational program. The service concept means the busi-ness administrator and staff must be flexible enough to adapt to changes occurring in the field and accommodate those changes within existing policies and procedures or request appropriate modifications.

All in all, the business administrator serves as an educator, organizer, communicator, eval-uator, team player, teacher, initiator, regulator and accommodator. Needless to say, these

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characteristics define the importance of the business administrator within the district’s organizational design.

III. LEGAL STATUS - LICENSING OF SCHOOL BUSINESS ADMINISTRATORS

Administrative Rules for the licensing of all public school administrators were revised July 1, 1992. They, along with all rules for continuing licenses of administrative and instructional staff, are being considered for revision at this writing. The following rules currently pertain to the initial licensing of School Business Administrators.

A School Business Administrator’s license may be granted to an individual who met the following requirements prior to July 1, 1992: held a School District Administrator license and completed a minimum of three years of experience as a chief school district adminis-trator in a district employing no less than 16 teachers.

PI 3.55

(1) GENERAL REQUIREMENTS - An applicant for a license under this sub-chap-ter shall meet all of the following requirements:

(a) Degree - An applicant for a superintendent license shall have completed an approved specialist degree program or the equivalent; for all other licenses under this sub-chapter, the applicant shall have completed an approved mas-ter’s degree program or the equivalent in the area of administration; or a mas-ter’s degree or the equivalent and an approved program leading to a license under this subchapter.

PI 3.61 SCHOOL BUSINESS ADMINISTRATOR - 08.

(1) Except as specified in sub. (2), the School Business Administrator - 08 license is required for the person who has primary budget and fiscal responsibility in the school district. For a license under this section, the applicant shall meet all of the general requirements under s. PI 3.55 which do not provide an exception for this license, and all of the following requirements:

(2) The applicant shall have successfully completed an approved program leading to licensure as a School Business Administrator which includes 18 semester credits of graduate course work, including the following:

(a) Accounting

(b) Data management and processing

(c) Risk Management

(d) School Facilities

(e) One of the following:

1. Collective Bargaining

2. Employee contract administration

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3. Support services

(d) Practicum or internship in School Business Administration

The Department of Public Instruction has provided clarification of the most common questions related to the School Business Administrator’s license.

Effective July 1, 1992, the School Business Administrator (08) license is required for the individual who has primary budget and fiscal responsibility in a school district (except for the School District Superintendent if he/she has that responsibility).

No matter what the enrollment size of a school district, an individual assigned the primary budget/fiscal responsibility must hold the School Business Administrator (08) license.

The School Business Administrator license shall be granted only to individuals who have completed an approved School Business Administrator preparation program under the new Administrative Rules, or who had met the requirements in effect prior to July 1, 1992. Individuals who are enrolled in approved Wisconsin School Business Administrator pro-grams prior to July 1, 1992, may be issued a license based upon their completion of the specified requirements of the approved program in effect at the time of their admission to the program.

IV. ETHICS

The challenge to provide excellence in the business office is becoming more difficult. The scope and complexity of decisions have increased and school business personnel are expected to demonstrate more and better skills, attitudes, information and wisdom as they perform their jobs. These factors, combined with the expectation that business personnel act as stewards of the community’s financial investment in children, make ethical behavior an issue of critical importance.

The School Business Administrator must consider her/his professional ethics as a resource and guide to help cope effectively with the complex problems before her/him. A Code of Ethics provides a guide to common sense behavior and a set of acceptable rules of conduct for a reasonable person.

Too often the public focuses attention on the most highly publicized acts illustrative of unethical conduct. School Business Administrators and other school personnel are targets for those desiring special favors or considerations that would provide them with “special advantages.” Extreme care must be taken by anyone involved with educating children because any lapse of ethics causes everyone to lose. No winners emerge when there is a forced change in leadership caused by unprofessional/unethical conduct: the school dis-trict is damaged; public support is weakened; and valuable resources are diverted from children. Everyone fails a little when there is a loss of educational opportunity caused by unethical behavior.

The Wisconsin Association of School Business Officials accepts the obligation to provide a framework for responsible, professional behavior on the part of its members. With that in mind, the Code of Ethics on the following page exists to guide those in the profession:

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V. WISCONSIN ASSOCIATION OF SCHOOL BUSINESS OFFICIALS (WASBO) CODE OF ETHICS

High standards of ethical behavior for the Professional School Business Official are essen-tial and compatible with the purpose of public education and to a commitment to leader-ship in the continuing improvement of the educational enterprise. To that end, the Professional School Business Official shall:

adhere to local, state and national laws;

maintain high ethical standards;

accept responsibility for mastering, contributing to and sharing in the growth of spe-cialized knowledge, concepts, and skills which are necessary to perform their duties;

perform or direct the Business functions of the district in full support of educational opportunities provided to “all persons” in the district;

honor the public trust of the position above any economic or social rewards; not permit considerations of private gain nor personal economic interest to affect the discharge of their professional responsibilities; and recognize that the schools are the public’s busi-ness and seek to keep the community fully informed about its schools.

VI. ASSOCIATION OF SCHOOL BUSINESS OFFICIALS INTERNATIONAL (ASBO) STANDARDS OF BEHAVIOR

The Association of School Business Officials International (ASBO) is equally concerned about standards of behavior. They believe that in this age of accountability, when the activ-ities and conduct of school business officials are subject to greater scrutiny than ever before, Standards of Ethical Conduct are in order. With that in mind, the following Stan-dards of Behavior are promulgated.

In Relationships within the School District it is expected that the School Business Admin-istrator will:

1. Support the goals and objectives of the school district;

2. Interpret the policies and practices of the district to subordinates and to the com-munity fairly and objectively;

3. Implement, to the best of the official’s ability, the policies and administrative regu-lations of the district;

4. Assist fellow administrators as appropriate in fulfilling their obligations;

5. Build the best possible image of the district;

6. Refrain from publicly criticizing board members, administrators, or otheremployees;

7. Help subordinates to achieve their maximum potential through fair and just treat-ment.

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In the Conduct of Business and the Discharge of Responsibilities, the School Business Administrator will:

1. Conduct business honestly, openly and with integrity;

2. Avoid conflict of interest situations by not conducting business with a company or firm in which the official’s family has a vested interest;

3. Avoid preferential treatment of one outside interest group, company, or individual over another

4. Uphold the dignity and decorum of the office in every way;

5. Avoid using the position for personal gain;

6. Never accept or offer illegal payment for services rendered;

7. Refrain from accepting gifts, free services, or anything of value for or because of an act performed or withheld;

8. Permit the use of school property only for officially authorized activities;

9. Refrain from soliciting contributions from subordinates or outside sources for gifts or donations to a superior.

In relationship with Colleagues in Other Districts and Professional Associations, it is expected that the School Business Administrator will:

1. Support the actions of a colleague whenever possible, never publicly criticizing or censuring the official;

2. Offer assistance and/or guidance to a colleague when such help is requested or when the need is obvious;

3. Actively support appropriate professional associations aimed at improving school business management and encourage colleagues to do likewise;

4. Accept leadership roles and responsibilities when appropriate, but refrain from “taking over” any association;

5. Refrain from using any organization or position of leadership in it for personal gain.

VII. WASBO MISSION AND GOALS

The mission of the Wisconsin Association of School business Officials is as follows:

The mission of the Wisconsin Association of School Business Officials is to provide information and resources that assist members, school districts, governmental agen-cies and other organizations to continually improve educational opportunities for chil-dren in the state of Wisconsin.

WASBO’s goals are:

- To continue to grow as a professional association.

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- To serve as a unique resource to the membership, individual, and organization.

- To provide dynamic professional growth opportunities.

- To effectively communicate with the membership, individuals, and organizations.

- To encourage a broad and diverse membership.

- To provide opportunities for the informal and free exchange of ideas among members.

- To promote active membership participation in political issues.

- To promote active participation in regional, state and International Association of School Business Officials.

- To work cooperatively with other professional organizations.

- To promote and strengthen a partnership with the private sector.

VIII. DETERMINING IF A PROPOSED ACTION IS ETHICAL

Ethics refers to the principles of right and wrong that guide decision-making. Also involved in principle-centered decisions is consideration for the impact of these choices may have on others, considered to be stakeholders in the given situation. There are several steps a business manager can take in determining if a proposed action or decision isethical.

Steps administrators may take to determine if a proposed action or decision is ethical

Step 1.Determine if the action would be legal. Does it violate any state or federal laws or contradict any local ordinances or school district policies? It may be determined that the proposed action is legal, yet, there may still be reason to question its ethics.

Step 2.Determine if the action violates the code of ethics of the profession or the organization. Once both of these conditions have been satisfied, there are several tools used in business to evaluate whether a proposed action is ethical. They include the Pagano Model, the Utilitarian Theory, and the Doctrine of Prima Facie Duties.

Step 3.Apply the Pagano Model by answering the following questions:

1. Is the proposed action legal?2. What are the benefits and costs to the people involved?3. Would you want this action to be a universal standard, appropriate for every-

one?4. Does the action pass the light-of-day test? That is, if your action appeared on

television or others learned about it, would you be proud?5. Does the action pass the Golden Rule test? That is, would you want the same to

happen to you?6. Does the action pass the ventilation test? Ask the opinion of a wise friend with

no investment in the outcome. Does this friend believe that the action is ethical?

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Step 4.Apply the Utilitarian Theory

1. Believes that in all situations one ought to do that which provides the greatest balance of good over harm for all parties involved. Therefore, estimate the impact of each alternative action being considered on all stakeholders and then select the one that optimizes the satisfaction of the greatest number of people.

Step 5.Apply the Doctrine of Prima Facie Duties which involves:

1. Not harming innocent people,2. Keeping promises,3. Showing gratitude,4. Acting in a just way, and5. Providing reparations to those who have been harmed by one’s actions.

In applying these basic tenets, consider the organization’s major stakeholders and deter-mine which may be violated for any of the stakeholders.

Attached is a checklist of some questions that business officials can ask to apply these the-ories when contemplating whether a particular action is ethical. A flow chart is provided in the figure that follows that can assist business managers in addressing the steps necessary to identify whether a particular action is ethical.

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Framework for Analyzing Ethical Issues

Source: Himstreet and Baty’s Business Communication, 12th Edition, Figure 1-6, page 17.

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CHECKLIST FOR DETERMINING IF A PROPOSED ACTION IS ETHICAL

Yes No N/A

I. LONG-RANGE FINANCIAL PLANNING

A. Is the alternative legal?

1. Does it comply with all relevant state laws?

2. Does it comply with all relevant federal laws?

3. Does it comply with all contractual agreements?

4. Does it comply with all school board policies?

5. Does it comply with all local ordinances?

B. Is the alternative consistent with all Codes of Ethics?

1. Is it consistent with the WASBO Code of Ethics?

2. Is it consistent with ASBO’s Standards of Behavior?

3. Is it consistent with my employer’s Code of Ethics?

C. Does the proposed action considered ethical in terms of the Utilitarian Theory?

1. Does it provide the greatest good over harm for all stakeholders?

D. Is the proposed action ethical according to the Pagano Model?

1. Is the proposed action legal?

2. Are there more benefits than costs to the people affected?

3. Would you want this action to be a universal standard, appropriate for everyone?

4. Does the action pass the light-of-day test? That is, if your action appeared on television, would you be proud of it?

5. Does the action pass the Golden Rule test? Would you want the same to happen to you?

6. Does the action pass the ventilation test? Does or would a wise friend believe that the action is ethical?

E. Is the action consistent with the Doctrine of Prima Facie Duties?

1. Does the proposed action avoid harming innocent people?

2. Does the proposed action involve keeping promises?

3. Does the proposed action show gratitude?

4. Does the action involve acting in a just way?

5. Would reparations be provided to anyone who has been harmed?

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REFERENCES

Armstrong, William I., Burkybile, Sharon, Dembowski, Frederick L., and Guiney, Susan, Crisis and Confidence: The Changing Faces of the School Business Official, School Business Affairs, 65/12, December 1999.

DiBella, Cecilia M., Leading People, Managing Processes: School Business Administrators in the 21st Century, School Business Affairs, 65/12, December 1999.

Himstreet and Baty, Business Communication 12th Edition, South-Western College, Cincin-nati, Ohio,Publishing, 1999.

Pichel, Dr. Frank M. and Piper, Dr. Wallace B., Future Trends in Our Profession, School Business Affairs, 65/12, September 1998.

WASBO website lists association goals: http://www.wasbo.com/

Weeks, Richard H., The First 100 Days: A Successful Beginning as a School Business Administrator, School Business Affairs, 65/12, December 1999.

ASBO website: http://www.asbointl.org/

DPI Teacher Education and Licensing website: http://www.dpi.state.wi.us/dpi/dlsis/tel/pi3guide.html

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CHAPTER 2

FINANCIAL PLANNING, BUDGETING AND ONGOING FISCAL MANAGEMENT

INTRODUCTION

While school districts vary in terms of organizational structure, there are some critical steps of financial planning and budgeting that are universal. In some school districts the fiscal issues may be the responsibility of the district administrator who answers directly to the school board. In others, these responsibilities may be addressed by another administrative position. This middle management level administrator may report directly to the board and/or district administrator. There are many titles, which are used to describe this middle management administrator. While business manager is a common title, other titles might be business administrator, assistant district administrator, chief fiscal officer, and director of support services or director of financial services.

While the title of the position may vary there is commonality in the responsibilities. The efficient and effective management of the supportive functions of the educational program serves as a gen-eral description. These responsibilities may take the form of several roles that business officials find to be part of their positions. In some cases, the business official will find herself/himself func-tioning as the district’s technical expert. This technician’s role requires a level of knowledge and skills that allow the individual to understand the cause and effect relationship between the many details associated with budget and fiscal management.

In other areas of responsibility, the business official will serve as a resource person, calling upon the special information and perspective she/he has gained through professional training and expe-riences to guide the school district. Still, at other times, the business official must act as the decision-maker. She/he makes recommendations to the board and district administrator after studying budget and fiscal data, weighing costs and benefits, interpreting board policy, checking compliance with state statute, and evaluating conformance with the school district’s mission.

I. FINANCIAL PLANNING

Financial planning involves both long and short range planning. The long-range plan, developed around the mission and strategic plan of the school district, is based upon the desired educational outcomes of the “community.” “Community” here is not always lim-ited to the local community. Since sources of finances often dictate the course institutions take both state and federal “community” outcomes play a role.

Long-range plans must remain flexible because they are based upon an ever-changing set of assumptions that must be viewed and updated on a regular basis. The long-range plan sets the framework within which the annual, monthly, and daily financial plan decisions must be made. Below you will find a checklist of “Long Range” and “Ongoing” consider-ations within a financial plan.

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The budget is an integral part of any financial plan. The budget should translate both long and short-range goals of the district into a set of revenues, expenditures and balance sheet accounts.

Richard W. Hostrop & Associates breaks the budget process into eight steps.

A. Developing an educational plan that reflects the district’s educational philosophy and encourages citizen participation in the planning process.

B. Developing an expenditure plan, by developing a budget calendar and examining the previous year’s plan.

C. Developing a revenue plan.

D. Presentation of the budget.

E. Adoption of the budget.

F. Implementation and administration of the budget.

G. Amending the budget document.

H. Appraisal of the budget.

A checklist of considerations to be used in budgeting that incorporates these eight steps is provided later in this section.

II. FISCAL MANAGEMENT

Since a budget represents a financial plan for the district based on the best estimate of what is likely to occur, it requires careful monitoring once it has been adopted. Actual experience will differ from that plan in the area of revenues as well as expenditures. There-fore, the entire management team, program specialists, as well as the school board must be continually updated about the status of the budget. Regular reports comparing the actual experience of the district to the budget must be provided to key stakeholders. This infor-mation should include encumbrances, or obligations of the district for which it has not yet paid.

Key functions of the business office that provide internal services as well as impact the financial records include payroll processing, accounting, purchasing, cash flow analysis, and investing. Staff should be designated with responsibility for each of these functions. In addition to staff, the district relies on computer software and equipment that integrates these functions so that the financial records of the district remain up to date and accessible to those who rely on them for decision making. Access to accurate information facilitates the efficient management of district resources and the timely investment of public funds.

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CHECKLIST

Complete In Progress N/A

I. LONG-RANGE FINANCIAL PLANNINGA. The Board of Education has adopted policies outlining the

scope of the financial planning function of the school district assigning specific responsibilities and timetables.

B. The district has a ten-year history of the following school district information:

1. Per pupil assessed valuation

2. Per pupil equalized valuation

3. Operating expenditure per pupil

4. Tax rates by fund

5. Revenues by fund

6. Actual student enrollments by building

7. Actual student enrollments by grade

8. Actual student enrollments by program

9. Total school district enrollment

10.Five-year Enrollment projection completed within the past 2 years.

C. The business office has prepared and the Board has adopted a financial plan for at least three years projecting both revenues and expenditures and maintains at least a three-year history of actual expenditures and revenues.

D. The district has at least a five-year district facility plan, which includes major capital improvements.

E. The community is properly informed about the current financial needs of the district including the impact of the state-imposed revenue limits.

F. The community is properly informed about and is involved in the development and review of the school system’s long range capital plan of the Board of Education.

II. BUDGETINGBUDGETING PROCESS

A. The district has Board approved budgeting policies and procedures that are published and disseminated to appropriate staff and committee members which:

1. Identify roles and responsibilities in the budget process of Board, Superintendent, Assistant Superintendents, Business Administrator, Principals, Directors, Teachers, Non-teachers, and Community.

2. Allows for the evaluation and prioritization of the special needs of the district.

3. Includes an analysis of prior year budgets and expenditures.

4. Provides in-service training in the budget development process for the staff.

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5. Provides for a budget manual containing all relevant forms, instructions, and other data.

6. Includes a calendar scheduling the development of budget activities throughout the year.

7. Contains a statement of district philosophy and educational objectives to support the proposed expenditure pattern

B. The budget process provides for long-term budget planning including the following:

1. Enrollment projections

2. Staffing requirements

3. Facility Needs

4. Long-term debt requirements

5. Staff development

6. Salary and benefit projections

7. Transportation needs

8. Maintenance needs

9. Capital expenditures

10.Revenue projections

11.Expenditure projections

C. The business office provides projections, trends, comparative analyses, and multi-year planning by:

1. Developing and verifying enrollment projections or utilizing those developed by other staff members.

2. Projecting inflationary costs for energy, insurance, and other fixed expenditures.

3. Utilizing formalized forecasting methods in the budget development process.

4. Utilizing multi-year comparisons for analysis.

D. All funds (including student activity funds) are integrated into the district’s budgeting system with:

1. Procedures clearly designating responsible budget management of all funds.

2. An annual budget submitted for all funds in accordance with district budgeting procedures.

E. The district has a position control system for budgeting and controlling staff allocations and hiring.

F. The Board establishes various staffing ratios for grade levels and special program classes.

G. An authorized positions control document is prepared for each site or program for the district as a whole and is reflected in the total budget.

H. The budgeting practices within the district are consistent by building, department and program.

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I. The budget is planned and developed with appropriate input from the Board of Education, Administrators, Teachers, Support Staff and Community.

J. The Board of Education holds at least one public budget hearing prior to formal adoption. (Wisconsin State Statute 65.90 [4])

K. The notice of a public hearing on the School District Budget is published in a newspaper in accordance with state statutes. (Wisconsin State Statutes 65.90 [2][3][d]3)

BUDGET EXPENDITURES AND REVENUE PLAN

L. The budget is prepared using historical data and considers anticipated changes in the local economic climate.

M. The budget document:

1. Lists expenditures and revenues to the level of detail necessary to respond to local inquiries.

2. Contains provisions for contingencies.

3. Includes an adequate general or working capital reserve balance.

BUDGET PRESENTATION

N. The budget document:

1. Follows the minimum chart of accounts as required by the Wisconsin Department of Public Instruction for complete annual and grant program reporting.

2. Contains a summary by fund and reflects expenditures, revenues and the balance sheet for each fund.

3. Is prepared in an understandable format and in accordance with the chart of accounts as prescribed by the State Department of Public Instruction.

O. The district has a public relations program to inform the community on budget matters.

P. Copies of the adopted budget are available to all interested persons.

BUDGET ADOPTION AND TAX LEVY CERTIFICATION

Q. A preliminary budget is adopted by the Board of Educa-tion for presentation to the Budget Hearing/Annual Meet-ing

R. The Board of Education passes a formal resolution adopting the budgets for each of the funds it maintains in October once the revenues limit and state aid calculations are final.

S. The final tax levies for operation and maintenance and for debt retirement are certified by the Board of Education on or before November 1st or other date as specified by Wisconsin Statutes 120.12 (3][a])

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T. The tax levy is certified to the municipality(ies) of the school district on or before November 6th, unless it falls on a Saturday, in which case the final day for certification is November 8th. (Wisconsin Statutes 120.12 [3]a 120.12 [4])

III. ONGOING FISCAL MANAGEMENT

A. Periodic financial reports showing budget and actual figures, encumbrances and other expenditure commitments are prepared and disseminated.

B. A budget and actual summary is provided monthly to the Board of Education and to the administration for use as a management tool for controlling the budget.

C. The district has an expenditure control system, which provides an interrelationship between purchasing, payroll, accounting, and the business office.

D. The budget is monitored during the year and transfers made

E. Budgets are reviewed at least quarterly and budget revisions prepared and submitted for Board approval to reflect changes in management plans.

F. A process exists for evaluating budget projections and budget accuracy according to actual experience.

G. The district has a designated staff, which has assigned areas of responsibility and monitoring of budget projections and actual expenditures for all funds.

H. The budgeting hardware and software system meets the needs of the district with:

1. Budget data automated and accessible to appropriate district staff and management.

2. Automated features that facilitate the budget preparation process.

3. Accurate budget reports which are provided to Board and staff members.

4. Integration of the budget system with financial, cash management, and payroll systems.

I. There is a bond and interest schedule indicating individual levies required for outstanding bonds and monies received each year by bond issue.

J. A plan is developed for the timely sale of bond issues, long term notes and the possible use of bond anticipation notes.

K. Daily and monthly cash flow charts are used for investment planning and issuance of Tax and Revenue Anticipation Notes.

L. All funds are deposited on a timely basis.

M. Excess funds are invested in accordance with Wisconsin statutes and Internal Revenue Service arbitrage regulations. (Wisconsin statutes 66.04(2) & Section 148 of the IRS Code.)

N. Appropriate financial reports are prepared to record data and provide information for management decisions.

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REFERENCES

Everett, Lows, and Johnson, Financial and Managerial Accounting for School Administrators, ASBO International, 1996.

Goertz, Margaret E. and Odden, Allan, School-Based Financing, Corwin Press, INC., 1999.

Hostrop, Richard W & Associates, The Effective School Administrator, ETC Publications, Palm Springs, CA, January 1990.

Self-Evaluation Manual for School Business Management. Michigan ASBO, 1989.

Self-Evaluation Manual for School Business Management. Pennsylvania ASBO, 1987.

Handbook for School Business Officials. Illinois ASBO, updated 1990.

School Budgeting and Financial Planning. Michigan Institute for Educational Management, 1988-89 School Year

Site-Based Management, School Business Affairs, November 1997.

Jacoby, Michael A., The Future Demands it Now - Multi-Year budgeting, School Business Affairs, June 1995.

Wood, Craig R., Principles of School Business Management, ASBO International, 1986.

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CHAPTER 3

PERSONNEL MANAGEMENT

INTRODUCTION

Personnel functions, primarily dependent upon the size of a school district, may be vested in a Personnel Department, be a responsibility resting solely or primarily with the Business Department, or have its needs split among a variety of school departments. In any of these alignments, the Business Office will, of necessity, maintain at least some of the normal personnel responsibilities. In the following, the broader picture has been addressed which should enable each district to adapt according to its own needs.

I. STAFFING

Staff make any operation work or fail. It is therefore essential that the best people available are utilized in the best manner possible in positions designed to meet the total needs of the organization.


A. Organization patterns

1. Tables of organization are in place and approved by Board of Education action and/or superintendent of schools.

2. Staff ratios have been reviewed and established.

3. Job descriptions are in writing and regularly updated for each position.

B. Hiring procedures

1. Applications

a) Forms are standardized by types of employees.

b) Application forms meet federal and state regulations regarding non-discrimination, etc.

c) Applications are received and maintained in one location to avoid duplication and to maintain continuity.

2. Postings

a) All openings are posted using a standardized format in compliance with negotiated contract agreement(s).

b) All postings contain a standard statement of nondiscrimination in compliance with E.E.O.C. requirements.

c) Postings are placed in all district locations and in such out-of-district locations as may offer the best prospective applicants.

3. Job advertising and/or recruitment

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a) District has established a general strategy for recruiting both internal and external candidates.

b) The district compiles records on annual hires by position to determine if turnover problems exist in certain job classifications.

c) The district forecasts long-range needs for hard-to-fill positions in order to avoid long-term gaps in service.

d) Newspaper job advertisements take into account the following characteristics:

(1) District reputation

(2) Board set of qualifications

(3) Salary and benefits

(4) Layout of advertisement

(5) East (pleasing) to read

4. Screening

a) References are thoroughly checked by telephone or letter.

b) Past experience is verified.

c) Required licensing is up to date.

d) All necessary forms, transcripts, references, etc., accompany the application form.

e) Total applications for each opening are reviewed to eliminate non-qualified applicants and/or to reduce the number of applicants to a workable size for final consideration.

f) A cross-referencing system is maintained in filing of applicants where applicants are qualified for more than one type of work.

5. Testing (prior to employment)

a) Medical testing (physical, TB, etc.) has been completed to meet district and state requirements.

b) Standard district-mandated drug test completed where required.

c) District established written, oral, and/or skills tests have been administered and scored.

6. Interviewing

a) The District conducts annual review of standardized interview questions with district’s legal counsel to prevent asking any improper interview questions.

b) Standardized questions are asked of all interviewees for the same position to assure comparability and fairness.

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c) Personal interviews are given by at least two individuals or groups, including the individual who will be directly responsible for supervision.

d) In addition to “c” above, a professionally designed standardized interview instrument is administered to all final candidates for each position.

e) Recommendations for hiring are made to the individual responsible for hiring. NOTE: It is preferable if at least two individuals are recommended in priority order in case the first choice refuses the offer or is in some way disqualified.

7. Selection

a) The selected applicant is offered employment only by the individual with hiring authority.

b) The selected candidate is approved for district employment by the board of education.

c) At the time of hire, the new employee is furnished with:

(1) A copy of the applicable bargaining unit agreement.

(2) Confirmation of salary and benefits

(3) A packet containing necessary employment forms (W-4, I-9, directory information, insurance forms), etc.

(4) A written job description

(5) Written confirmation of employment stating starting date, position, salary, and other related information.

(6) Employment contract where applicable

8. The District has considered the following federal and state laws in all employment interviews and the hiring process:

a) Title VII of the Civil Rights Act of 1964

b) Age Discrimination in Employment Act (ADEA)

c) Older Workers Benefit Protection Act

d) Americans with Disabilities Act (ADA)

e) Wisconsin Fair Employment Law (Ch. III)

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II. RECORD MAINTENANCE

Accurate records must be maintained to handle current needs, to fulfill local, state and fed-eral regulations, and to assure historical reference. Note the statute of limitations regarding retention of various forms, reports and other records. The Department of Public Instruction prepares record retention guidelines specific to school districts. The general personnel file should be maintained in one place, although some portions of the total file (payroll, insurance, attendance, etc.) may, due to organizational patterns, be in other locations.


A. A records retention plan adopted by the District has been developed.

B. Records to be maintained include:

1. Initial employment records

2. Letters of recommendation

3. Transcripts or other verification of training/course completion.

4. Current and past licenses.

5. Individual evaluations.

6. Seniority and tenure records.

7. General correspondence directly related to the employee.

8. Attendance record detailing absences for illness, vacations, emergency/personal leave, leaves of absence, sabbatical leaves, school business, absences with pay deductions, and unauthorized absences.

9. Health/accident records

10.Pay status including pay level, overtime, bonuses, authorized deductions, etc.

11.Disciplinary records including full records of hearings, etc.

12.Termination records.

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III. INSERVICE

In addition to being mandated in Wisconsin, continuing education records may be required for updating of certification or district requirements, promotions, pay increases, contractual reimbursement for credit attainment, etc. Inservicing not only meets a variety of requirements, it can also stimulate employees, provide them with updated information, or enable them to obtain new knowledge and skills directly or indirectly related to their work.


A. District-wide and school/department inservice committees covering of all segments of staff are in place.

B. District strategic plans and goals are considered when establishing district inservice programs.

C. Applications are routinely filed so that DPI equivalency credits can be offered for district-sponsored courses.

D. Cooperative efforts are utilized for available programs from such sources as the district’s health insurance carrier for health related inservicing, workers’ compensation carrier for such topics as safety programs, etc.

E. Staff is kept informed of available course offerings in the area from colleges, technical schools, etc., through regular postings or through a newsletter.

F. District staff are encouraged to serve as inservice instructors within the district in areas of their own expertise.

G. Records are maintained of each district inservice program offered including the date(s) of the program, basic course outline, presenters, credit offered, and those attending/completing the course.

H. A specific orientation/inservice program is required of all new employees to acquaint them with both the district as a whole and to their individual work responsibilities.

I. Incentives are provided to encourage participation by all staff at inservice programs outside of contracted work schedules.

J. Inservicing is made available to all staff affected by programs new to the district staff.

K. Provisions are in place for retraining of employees who may be laid off due to lack of work, physical disability or similar changes in category.

L. An annual report is made to the Board of Education summarizing inservice activities for the year.

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IV. CONTRACT ADMINISTRATION

Statutory provisions relating to collective bargaining in Wisconsin have given special emphasis to contract administration in school districts. Rights of both employees and the employer are outlined in such agreements, yet those rights may differ greatly from one bargaining unit to the next. Insightful contract administration can save time, money, improve labor-management relationships, and maintain/improve staff morale.


A. One individual is given primary responsibility for contract interpretation for the district.

B. Each contract formally negotiated between the district and a recognized bargaining unit is in writing and signed by representatives of both parties.

C. Such documents as employee handbooks within individual schools or departmental guidebooks for staff are screened before being issued to staff, since they may have the same effect under the law as negotiated agreements.

D. Administrators/supervisors are regularly inserviced on the terms of negotiated contracts as well as their rights and responsibilities within and apart from negotiated contracts.

E. Union representation is guaranteed to any employee facing possible disciplinary action.

F. A good working relationship is maintained with the representatives of all recognized bargaining units.

G. Complaints/grievances are settled at the lowest possible level whenever possible.

H. The district has qualified legal assistance either on staff or on retainer to advise as needed.

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V. LEGAL ASPECTS


A. The district has a legal counsel available at least on a retainer basis.

B. Responsibility for all legal matters are routed through the same office/department.

C. Settlements short of legal action or arbitration are made whenever possible without compromising the position of the district.

D. The district maintains adequate liability and errors and omissions insurance coverage.

E. The importance of keeping full records in the event of possible legal action is impressed upon all staff.

F. Attendance at seminars and/or courses in public school law are encouraged of all administrative staff members.

G. District policies and regulations are clearly outlined in writing.

H. All required legal and employee notices are posted in a timely manner in accordance with regulations of state and federal agencies.

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VI. PERFORMANCE APPRAISALS


A. Employees are evaluated on an annual basis for the first 3 years of employment, then at least every 2 years.

B. The process and goals of the performance evaluations are clear to both appraiser and employee.

C. A carefully developed evaluation form is used for all evaluations.

D. Focus of evaluation has an “outcome” orientation which is job specific.

E. Annual performance goals or objectives are established for each employee as part of the annual performance evaluation.

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REFERENCES

“The New Public Personnel Administration,” 4th edition, Lloyd G. Nigro & Felix A. Nigro, Published by F.E. Peacock Publishers, Inc., 1994.

“Compensation Decision Making,” F.S. Ailis, T.J. Borgmann and V. G. Scarpello, Published by the Dryden Press, 1994.

“Public Sector Labor Relations, Analysis and Readings,” D. Lewin, P. Feuille, T.A. Kochan, J. Delaney, Published by Lexington Books, 1977.

“Principles of School Business Management,” R. Craig Wood, Editor, Published by ASBO, International, 1986.

“The Complete Guide to Performance Appraisal,” Richard C. Grote, Published by Amacon, 1996.

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CHAPTER 4

DATA PROCESSING AND MANAGEMENT INFORMATION SYSTEMS

INTRODUCTION

A commons need of all school districts is to organize information to make management decisions at all levels. The basic purpose of a data processing system is to improve information management. This is accomplished by electronically manipulating data so that it is better organized, more reliable, and more readily available.

A computer system is only part of a data processing system. A data processing system must inte-grate personnel, procedures and a computer system to be able to provide information used by management for decision-making purposes.

The purpose of this chapter is to discuss some of the fundamental concepts involved in organizing data and the activities involved in selecting a data processing system. Additionally, the chapter will focus on how these concepts and activities relate to the operational objectives of the school business function, and it will provide a self-evaluating tool which can be used in developing a suc-cessful data processing operation.

I. ORGANIZING DATA

All school districts must routinely organize data and make decisions relating to student records, personnel, budget, finance, materials, facilities and more. Whether a district’s information should be organized manually or electronically is a result of the size, complexity and needs of that particular school district. Greater demands for information by the public and increased reporting requirements by state and federal agencies have forced districts to compile an increasing number of reports with greater detail.

II. COMPUTER SYSTEMS

Early data processing systems could be divided into definitive groups. There were micro, mini, and mainframe computer systems. Today, technology has made these distinctions less discernible. The speed and capabilities of microcomputers now exceed those of larger systems which were the “state of the art” only a few years ago. Combinations of micro and general purpose computers are now used to provide an overall solution to a district’s data processing needs. “Networks” of microcomputers can now provide much more flexibility and computing power than many older mainframe systems at significantly less cost.

A. Determining Whether to Purchase a Computer System:

Many districts that are using manual methods or contracting with data processing agencies may find it feasible to purchase a general purpose computer system.

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B. Microcomputers

Microcomputers (often called desktop or laptop units) are small, self-contained data processing systems. Improvements in microcomputer technology have prompted a number of vendors to develop financial, payroll, pupil and other administrative soft-ware for the microcomputer. Microcomputer software and hardware is now a cost-effective alternative to larger, mainframe data processing systems for some school districts.

The most common use of microcomputers is to provide solutions to specific adminis-trative problems that do not require the manipulation and sorting of large quantities of data. Administrative applications have historically been developed by utilizing com-mercially available software packages. Many different packages can be used with the same computer, as long as they are all compatible with the hardware being used. These software programs include Database Programs (usually for managing more complex data which needs to be sorted), Spreadsheet Programs (used for gathering and manipu-lating numerical data), Word Processing Programs (for manipulating written data) and Graphics and Presentation Programs (for generating charts).

Many school business management applications have been developed and are avail-able from the State of Wisconsin Department of Public Instruction (DPI). Applications available through the DPI include programs to prepare the Annual Bud-get Report, the Annual Report, and the Summer School Report. The DPI also has soft-ware available a number of financial spreadsheets which can be downloaded from the DPI website to help districts calculate equalization aid, revenue control limits and other categorical aids.Annual reports and budget reports can now be sent electronically to the DPI through


1. The purchase of a computer system versus contracting with a data processing agency has been analyzed.

2. All costs associated with purchasing a computer system have been considered in the cost-benefit analysis.

3. Funds have been committed to finance the purchase of all system components:

a) Software and training

b) Software maintenance contracts

c) Equipment

d) Training

e) Supplies

f) Equipment maintenance contracts

4. Both user capacity and data capacity have been consid-ered in the selection of equipment for a computer system.

5. System selected will provide for easy expansion and for migration of the database when software upgrading is done.

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use of a computer modem.The selection of a microcomputer for administrative applications should be based on what software will be used. Just as in the selection of a comprehensive information system, operational objectives and software, as well as size of school district, will dic-tate what type of hardware is needed.

C. Mainframe or Network Systems

Mainframe computer systems are generally characterized by their ability to manipulate extremely large quantities of complex data. Typically they differ from microcomputers in that devices are specialized and separate.

Additionally, mainframe computer systems can provide the capability to communicate to a number of remote sites, such as schools. Mainframe computers vary in size depending on the complexity of the information that must be input, processed, stored, and printed. Traditionally, these systems have been used to perform most of the major tasks (such as payroll, budget, student and financial accounting) a school district must accomplish.

General Purpose/Mainframe Computer Systems are composed of:

1. A Central Processing Unit (CPU) which controls all activities of the computer.

2. One or more input devices for entering data into the system such as terminals and optical character readers. Desktop units and even laptop units can be tied into mainframe systems to emulate terminal units.

3. One or more output devices which produce reports or information, such as printers.

4. Devices to store information, such as disk or magnetic tape drives.

III. THE NEEDS ASSESSMENT STUDY

In order to determine whether it is economically justifiable to institute a data processing system, a needs assessment study is usually conducted. A thorough analysis of the total informational system must be made to identify informational requirements, determine how those requirements are currently being met, evaluate possible alternatives to procure the required information, select the most effective means of achieving information system objectives, and devise a plan for implementing the proposed system.


1. The size of the district will allow for the microcomputer to be a suitable option with future expansion considered.

2. There is a need for a wide variety of administrative software applications requiring minimal effort.

3. Current and future requirements for storage, retrieval and communication of information and rapid manipulation of data are considered.

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A. Determining Who Should Perform Needs Assessment Study:

A study of this kind will allow management to make a reasonable decision concerning the needs of the district. If the district does not have enough qualified personnel to per-form such an analysis, the careful selection of a qualified consultant can be a great asset in completing the study and making recommendations. Even where district per-sonnel are available, a consultant should be used to assist with the final report and pro-vide an independent view of the study.

B. Identifying Informational Requirements

The first step in conducting a needs assessment study is to identify the informational requirements of the school district. These can be subdivided into six basic components: Personnel & Payroll, Student Data, Finance, Purchasing, Facilities, and Administration. Transportation may also be included depending on the size and needs of the district.

Organizing the district’s needs into these components is desirable to expedite the col-lection data and provide an outline for conducting the study. Whether or not each of these components is addressed by the study depends on the problem areas identified by district staff. Problem areas may be limited to finance and payroll or may encompass the entire informational system. The degree to which each of the various components of a district’s informational system is addressed can be measured by its ability in pro-viding staff with necessary data for completing routine tasks.

C. Determining How Informational Requirements are Being Met

The most expedient means of determining how informational requirements are cur-rently being met is to develop a checklist or survey form. At this juncture in the study it is important that the committee determines which informational requirements are currently being met satisfactorily. A data processing solution is not necessarily the best solution in all instances, and in some cases a manual method may be adequate and less frustrating.


1. Qualified staff representatives from the various areas affected by the needs assessment study are available to perform a thorough analysis of the district’s data processing needs with some assistance from appropriate consultants.

2. The option of having an outside firm perform the needs assessment study has been evaluated.


1. District staff have identified problem areas and prioritized current needs and established future needs.

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D. Software Selection

Once the committee has determined which operational objectives lend themselves to data processing solution, the next step is to investigate possible software alternatives. The district must consider whether it should design its own applications software, purchase applications software from a vendor, or contract for data processing services from a service bureau.

Software are those programs which have been written to store, organize and report information in a desired form. It is crucial that software be selected before hardware (the physical components that make up the computer), since it is the software, not the hardware, that will provide solutions to a district’s informational objectives.

Software used in computer systems are either systems or applications software. Systems software are manufacturer supplied programs which are used to control the operations of the system. Applications software are user or vendor supplied programs which address specific tasks such as payroll, inventory, and so forth.

The primary concern of the needs assessment study is to select the appropriate applica-tions software for the tasks that have been identified as informational requirements of the district.

Specifications should include the types of reports needed to be generated by the system, approximate size of each file such as payroll, budget, or pupil component, and desired method of processing data for each specific task (on-line or batch processing).

On-line processing provides almost instantaneous responses, such as the encumbrance of a purchase order, which immediately updates an account’s status. Batch processing is the regular processing of data collected over a specific period of time, which is then processed all at once, such as payroll.

When specifications for each task have been generated, the next step is to review alter-native methods for accomplishing information-processing tasks.

Staff demonstrations should be arranged with each software vendor. Areas of concern should be investigated and a written response provided by the vendor. Software docu-mentation should be requested so that it can be reviewed later. A careful review of reports generated and information stored by the system is useful in determining whether or not the software will meet specific needs. If serious concerns exist, schedule a second demonstration session.


1. A checklist has been developed which indicates whether the needs are currently being met by computer, pencil and paper, a contractual service, or not generated at all.

2. A determination has been made of the adequacy by which the district’s needs are currently being met.

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Prior to selecting a vendor to provide applications software, other districts should be contacted where that software has been installed. Ideally, a district should be selected that is of similar size and has been utilizing the software to solve similar informational problems.

The trend in public education is to purchase applications software from a vendor; however, it is important to carefully review each vendor’s ability to meet needs that have been identified in the study. If a vendor promises to develop a particular software application in the near future, the district must decide if they can wait for the new application.

It is advisable to conduct a careful investigation of the software vendor to include such factors as the size of his staff, the number of years he has been in business, types of warranties, and the cost of software, software alterations and training. Each vendor should be able to provide a detailed analysis as to how their software meets each of your specifications. Care should be taken to ensure that software the vendor shows you is currently available and that its continued availability is anticipated. Provisions for updates should be identified in advance.


1. Management has prioritized the applications to be implemented on the computer system.

2. The software has on-line capabilities and allows for multiple users.

3. The various software applications are integrated with each other.

4. The software provides for an audit trail.

5. The software has complete, understandable documentation. Consider staff training time.

6. Software has been tested and evaluated to verify that it meets each of the school district’s specifications. Do not make a final payment to the software vendor until this has been completed.

7. The source code is available for school district use in making changes and modifications.

8. Qualified vendor personnel are available to develop and support software.

9. The software has been evaluated.

10. The software is “user friendly.” Consider all the staff that will be using each software application.

11. The software has been evaluated to ascertain whether or not there are problem areas.

12. The vendor and district have developed a plan to effectively train key personnel.

13. Inquiries have been made to other districts using software developed by the vendor to verify that the vendor has satisfactorily responded to problems and requests for software updates.

14. Software is developed within the time period specified.

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E. Hardware Selection

The selection of hardware is usually dictated by the applications software that has been selected. In some instances a vendor’s application software may run on one or more computer systems. In those instances, a decision must be made as to which computer system best fits the needs of the institution.

At this point it should be relatively easy to differentiate which tasks are appropriate for micro or mainframe computers. A combination of both types offers the most flexible and useful hardware solution.

Specifications must be developed which include information regarding the size of var-ious files such as payroll, budget, or pupil component, number of staff needing to access system, number and location of staff that will need reports generated by system, types of input that will be utilized to enter data (optical scanning sheets, keyboard, etc.), response time desired, types of special applications software which the hardware vendor is to supply with the system, and the level of support needed.

F. Selecting the Appropriate System

A final comparative analysis report should be made of each software/hardware alternative, comparing initial cost of software and any special alterations needed, initial cost of hardware, cost of training personnel, cost of transferring (or entering) information into system, projected cost of hardware maintenance, projected cost of software maintenance and enhancements, total anticipated cost over a specified period (such as five years), and necessity for additional personnel to operate system. Often, “hidden costs” such as additional personnel being required will have an impact on the selection of a data processing system.


1. Specifications have been developed to meet the district’s needs as set forth in the preceding paragraph.

2. The hardware is compatible with the software applications being used by the district.

3. The hardware vendor provides on-site maintenance.

4. Hardware maintenance is provided from a local office. Response time is reasonable.

5. Hardware allows for upgrading as needs increase without significant changes to operations.

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G. Implementation Plan

Prior to making a final recommendation, an implementation plan stipulating proce-dures and practices should be developed to ensure the successful operation of the data processing system. Both hardware and software vendors should be able to provide a significant amount of assistance.

IV. OPERATIONAL PROCEDURES

A. System Security

Operational procedures must ensure that information entered and produced by the sys-tem is both reliable and available. In addition to the operations manuals which most software and hardware vendors supply, a school district data processing procedures


1. The final report discusses each of the steps pursued in the needs assessment study.

2. Request for proposal has been written and sent to all qualified vendors meeting criteria established through the needs assessment study.

3. The final recommendation of the committee reflects the system which best meets the district's operational objectives.


1. A timetable for the installation, training and start-up of the various components of the system has been developed.

2. Enough time has been allowed for establishing or transferring data files and testing the system.

3. Staff assignments must be developed or altered to compensate for the computer system.

4. There are standard procedures for acquiring data processing equipment.

5. Sufficient space and building alterations, including HVAC considerations, have been provided for total data processing operations.

6. Appropriate fire protection and security systems have been installed in the computer site.

7. A separate electrical service supply (dedicated line) is provided for the data processing area. Uninterruptible power supply systems are used.

8. Computer operators have been thoroughly trained on the computer system and its peripherals.

9. Data entry clerks/computer operators have been cross-trained in the various applications.

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manual should be developed. This manual should clarify how the software and hard-ware is to be utilized and what steps should be taken in an emergency.

It is usually desirable that sensitive or confidential information such as salaries, per-sonnel data, student grades and budgetary data be restricted for use. Passwords should be assigned with access codes that limit personnel to specific components, limit their ability to manipulate data and their ability to view data and generate reports. The level of access given to key personnel is usually a function of their “need to know.” Also, data processing hardware and software should be housed in areas with limited access. The physical security system must prevent a disgruntled employee or vandal who can freely enter a district office and destroy valuable data or equipment.

B. Data Integrity

Information generated by a data processing system is of little use if it is not reliable. It is important, therefore, to develop practices and procedures which will ensure the integrity of data entered into the system.


1. Software includes an internal security system.

2. The operating system as well as the application programs provide for password security.

3. Access codes have been provided that restrict personnel to specific components of the system and limit their ability to manipulate or view data or generate reports.

4. The computer room is secure against unauthorized entry.

5. The computer area is secure against vandalism.

6. An alarm system is installed in the computer room to notify staff or police of an attempted entry.


1. Data input forms have been developed that are easy to use and follow data input screens.

2. There are clearly written instructions and/or user manuals for preparing input documents.

3. There is a formal procedure for requesting informa-tion from the data processing department.

4. Subsequent to data input, source documents are initialed and dated by the operator.

5. Batch controls such as dollar amounts or item counts are maintained for all transactions.

6. The software provides verification for the integrity of the data.

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C. Backup Procedures

Whether through error, malfunction or some other reason, data occasionally is “lost” or unreadable by the data processing system. To ensure that current work can be recov-ered in the event of system malfunction, it is imperative that backup copies of all data be made on a regular basis. System software backups should be updated whenever pro-gram changes have been made. The more often a backup is performed, the less work would be involved in duplicating any information that may be lost by a system mal-function.

D. Emergency Procedures

Emergencies may occur as a result of a natural disaster, hardware malfunction, or other event. A good emergency plan will state what and how personnel are to be contacted in case of an emergency, what responsibilities are assigned to key personnel, how must work schedules be altered, where off-site backups are stored, what other facility can be used in an emergency, and what arrangements must be made to transport information to and from an alternate facility. If the district has a good emergency plan, it ensures that payrolls, bills, attendance reports, and other information continues to be generated until the situation which caused the emergency is alleviated.


1. A formal back-up procedure has been implemented.

2. A secure off-site area is available for storage of back-up media, such as a complete set of system software, procedural manuals, and data files.

3. Arrangements have been made to replace off-site backups on either a weekly or monthly basis to ensure the information they contain is reasonably current.

4. A system of setting up on-site backups of data files on a daily basis has been established.

5. Specific personnel have been assigned the task of ensuring that backups are made at the end of every workday.


1. The software allows for the recovery of data in case of a machine failure with a minimal loss of data.

2. A written plan has been developed outlining steps to be followed in case of a natural disaster, hardware malfunction or other catastrophic event.

3. Key personnel know their responsibilities should an emergency occur.

4. Arrangements have been made with another compatible computer installation in fairly close proximity for use as a back-up site in emergencies.

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V. CHAPTER SUMMARY

Data processing systems provide an alternative to the manual system of gathering infor-mation to meet operational objectives. A well-designed system will enhance and improve the decision-making process. Depending on the setting, standalone micro, networked, mini, or mainframe computers may be desirable to meet various operational objectives. A needs assessment is a process which can be used to select the appropriate data processing system for a district. Such a study identifies operational objectives, determines who these needs are being met, reviews software and hardware alternatives and establishes an imple-mentation schedule.

Operational procedures should be developed for each data processing system and updated regularly. These procedures ensure a system’s success. They address the areas of data integrity and security, emergency planning and back-up procedures. Each district should develop its own procedure manual to supplement documentation provided by various ven-dors. The self-evaluation questions listed on the preceding pages can be used in the devel-opment or refinement of a school district computer system so that district personnel can be aware of some of the pitfalls that have befallen some of those who went this way before.

More and more school districts are finding it advantageous to employ a management information specialist or technology coordinator. This individual may be responsible for the coordination of administrative applications exclusively, or may oversee instructional needs as well. As districts spend more and more dollars on technology, having a trained person on site to support in-house operations can be a good investment as well. The responsibilities of such an employee may include:

1. Reviewing hardware and software purchases,

2. Monitoring network operations,

3. Trouble-shooting day to day problems,

4. Maintaining rapport with service providers, and

5. Training.

This vital support can save time and money for the district by eliminating duplication and waste in purchasing, dealing with appropriate service providers in a positive manner, and minimizing downtime of the overall system.

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REFERENCES



Handbook for School Business Officials. Illinois ASBO, updated 1990.

"Essentials of Management Information Systems," Kenneth C. Laudon and Jane Price Laudon, Published by Prentice Hall, 1998.

Computer Vendor Websites:

Compaq www.compaq.com

Apple www.apple.com

Dell www.dell.com

Hewlett Packard www.hp.com

IBM www.ibm.com

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CHAPTER 5

FACILITY PLANNING AND CONSTRUCTION

INTRODUCTION

The importance of well-planned school facilities cannot be emphasized enough. Carefully planned and quality constructed facilities can enhance the learning environment for students and teachers. School administrators should use every resource, from within the district as well as out-side consultants, to ensure the project is a success.

The following sections are not intended to be a comprehensive plan for building projects. However, they may serve as a tool for a more complete and detailed planning process within each school district.

I. LONG RANGE PLANNING/FEASIBILITY STUDY

A. Evaluation criteria for this section are contained in the following.

LONG RANGE PLANNING/FEASIBILITY STUDY CHECKLIST


1. Has a comprehensive study of present facilities been completed?

2. Has the study been conducted by:

a) An architectural and/or engineering firm?

b) A professional educational planner?

c) Some other consultant who has expertise in education, facilities, and planning?

3. Did the study take the following points into consideration?

a) School enrollments-present and future?

b) The ability of present facilities to adequately house existing programs?

c) The ability of present facilities to adequately house future programs?

d) The physical condition of the facilities?

e) The operating efficiency of the present facilities?

4. Did the study consider the nature of the community, their attitudes toward education, and their expectations of the schools?

5. Has the district consulted with financial consultants and bond counsel to determine the funding alternatives available?

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II. SELECTING AN ARCHITECT

A. After the initial study of present facilities has been completed, the district must select an architect. This architectural firm does not necessarily have to be the same firm that may have done the initial feasibility study. Since the architect will advise the district regarding design, building codes, feasibility, functional efficiency, construction costs, and operational and maintenance costs, the choice of architects is one of the most important steps in a building project.

B. As a public service to school districts, information on how to establish an objective and rational process for selecting an architect can be obtained from the:

Wisconsin Society of Architects321 South Hamilton StreetMadison, WI 53703(608)257-8477

C. Evaluation criteria for this section are contained in the following.

SELECTING AN ARCHITECT CHECKLIST


1. Competence

2. Qualifications

3. Experience

4. Support staff

5. Location

6. Compatibility with your district

7. Recommendations from other school districts

8. Past record and/or willingness of working with a construction manager

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III. PLANNING/EDUCATIONAL SPECIFICATIONS

A. If a complete, comprehensive, and high quality set of educational specifications are developed for the building or remodeling project, the facilities will enhance the educa-tional and support programs being provided within the facilities.

B. Evaluation criteria for this section are contained in the following.

PLANNING/EDUCATIONAL SPECIFICATIONS CHECKLIST


1. Planning for the new or remodeled facilities contain input from:

a) District administrators

b) Principals

c) Teachers

d) Students

e) Community members

f) Building services personnel

g) Architect

h) School board members

2. Has a planning and construction timeline been established?

3. Have the following questions been answered within the educational specifications?

a) Who is to be served? (Students? Teachers? Aides? Before- and after-school day care? Community? Co-curricular?)

b) What programs are to be offered? (Auditorium? Vocational area? Library or IMC? Special education program? Gifted and talented? Athletic facilities? Family and consumer living? Cooperative education? Student parking? Visitor and staff parking?)

c) What functions or activities will take place in each space?

d) What furniture and equipment will be needed for each space?

e) Have alternative plans been prepared to accommodate students if construction delays occur?

IV. PROJECT BUDGET

A. A project budget includes several critical components.

B. Evaluation criteria for this section are contained in the following.

PROJECT BUDGET CHECKLIST


1. Site acquisition (if applicable)

2. Site development

3. Construction costs

4. Furniture and equipment

5. Fees for architects, engineers and other professional services

6. Contingencies

Always keep in mind the various costs that may be incurred but are not necessarily a part of the construction budget. Some examples might include asbestos abatement, security systems, telephone systems, site utility modification, insurance, unusual soil conditions, cleaning of the facilities and moving expenses.

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V. SITE SELECTION


SITE SELECTION CHECKLIST


1. If site acquisition is required, have the services of legal counsel been utilized?

2. Has a site selection committee been selected to consider alternatives and receive input from the community?

3. Criteria that the committee may want to consider when selecting a site can include:

a) Is the site available, reasonably priced and can it be expanded for future growth?

b) Does the site support the educational specifications?

c) What is the impact on transportation, both district transportation and community traffic patterns?

d) Is the site accessible to main thoroughfares?

e) Is the topography of the site conducive to the desired development?

f) Are utilities accessible nearby?

g) Will the cost to install and/or move utilities be prohibitive?

h) Is there sufficient acreage for development of playgrounds, football fields, ball diamonds, soccer fields and other outdoor facilities?

i) Is there sufficient acreage for outdoor storage?

j) Is the site convenient for the majority of students it will serve and/or central to the student population for transportation services?

k) Is the site safe for children and is it served by public protection services, i.e., police and fire departments?

4. Have local community needs been considered? (Will the site contribute to community activities and events?)

5. Has a study been completed to analyze the number of parking spaces needed for employees, students, and visitors?

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VI. OWNER/CONTRACTOR RELATIONSHIP


OWNER/CONTRACTOR RELATIONSHIP CHECKLIST


1. Has consideration for employing a construction management firm been given?

2. Have appropriate state statutes been reviewed prior to contracting?

3. Have all district policies and procedures related to construction and the awarding of contracts been reviewed?

4. Has the district pre-qualified potential contractors using criteria based on financial responsibility, equipment, skill, past performance, integrity, and any other criteria related to this specific project?

5. Has a contract document between the school district and the contractor been prepared by the architect or construction manager in conjunction with the board and the board's attorney?

6. Has consideration been given to awarding a contract to a general contractor with all subcontractors reporting to the general contractor versus separate contracts between the general contractor an all prime subcontractors and the school district?

7. Has a school district staff person been appointed to serve as a liaison between the owner and the contractor(s) and the owner and the architect?

8. Have regular progress meetings been established until the project has been completed?

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REFERENCES

Selecting Your Architect for Public Projects. Wisconsin Society of Architects, American Institute of Architects, 1988.


To Create a School, A Design for Working Relationships. Third Edition, Revised 1986. Copyright © 1987 by Wisconsin Association of School Boards, Inc. Winneconne, Wisconsin.

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CHAPTER 6

INSURANCE/RISK MANAGEMENT

INTRODUCTION

Risk management is a complex function. Its goal is to identify and minimize the risks of doing the business of the school district at an acceptable cost.

In order to manage risks they must first be identified and an assessment done to determine the probability and frequency of occurrence. Next the severity of loss needs to be determined. Catastrophic losses are the most important function of the risk manager. Finally, study of risks and education of employees need to be accomplished to reduce or eliminate as many risks as possible. Once this final step has been accomplished the remaining risks need to be handled either by risk assumption or risk transfer.

Assumption of risk occurs when a school district decides to retain a risk and pay as necessary when such risks occur. This is usually done when the frequency of the risk is high and the severity is low, such as frequent glass breakage. This is an example of a risk that could occur so frequently that it would increase insurance premiums or fall below the per occurrence portion of the deductible.

Transfer of risk can occur in one of two ways. The first is a non-insurance transfer by either con-tract or agreement with parties to require them to accept liability for the risk themselves or insure it themselves. Another way to handle risk on a non-insurance basis is to use the hold harmless clause or agreement where one party agrees to hold the other party harmless for certain conditions or acts should they occur. The second way that risk can be transferred is by purchasing insurance. Basically the insurance transfer is by a contract whereby the insurance company agrees to pay for losses covered in a written contract which the insured (school district in this case) has paid a pre-mium (fee) for in advance.

Insurance contracts can either be negotiated or bid. Bidding sometimes can help to control the costs of a district’s insurance package. However, a requirement to bid can limit the options avail-able to the risk manager. Frequent bidding of a district’s insurance package can actually drive the costs up, especially during tight market conditions. A product risk manager would suggest that a bidding frequency of 3 to 5 years is most responsible. The greater the number of years between bids the more probability exists for better package prices because insurers will be able to cover the initial high cost of initializing coverage and covering first year claims.

Dividend history of insurers also needs to be considered. Though dividends are not guaranteed in amount, they can significantly reduce the net cost of the coverage. Mutual companies pay divi-dends to insureds, Stock companies do not.

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A reasonable alternative to bidding is the use of an insurance broker who can “shop” the cover-ages required by the school district and place each part of the package with the insurer who can deliver the coverage required at the lowest cost. Whatever method of obtaining the insurance package, the coverages and requirements must be spelled out carefully in advance and bidders or brokers made aware of their limitations in obtaining the coverages specified.

Whatever method used, nothing ever replaces the value of a good, close relationship and constant communication between the district risk manager and the insurance representative or broker throughout the length of the contract.

I. TYPES OF INSURANCE COVERAGE USUALLY INCLUDED

The following three groups of insurance coverage are commonly included as a part of the “complete” district insurance package. All should be seriously considered by any district based upon the unique needs present.

A. The first group is usually tied to the negotiated contract for teachers and/or other employees of the school district. It is therefore difficult to bid or broker as a part of the greater district insurance package. This group of employee benefits includes:

1. Medical and Hospitalization Insurance

a) Dental Insurance

b) Vision Care Insurance

c) Disability Insurance

d) Life Insurance

B. The second group is usually included in the district insurance package and includes:

1. Fire Insurance (protection against losses from fire, lightning and other optional coverages by endorsement). Additional coverages in this category include:

a) Business interruption

b) Rental value

c) Valuable papers

d) Demolition

e) Personal property of employees

f) Personal property off premises

g) Trees, plants and shrubs

2. Other Property Coverages (including crop, earthquake, water damage, sprinkler leakage, boiler and machinery). Losses that school district property should be pro-tected against include:

a) Personal property

b) Messenger robbery

c) Inside robbery

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d) Safe burglary

e) Fidelity bond

f) “3-D” bond

3. Boiler and Machinery Coverage (usually separate from the property package). The most important aspect of this coverage is the highly technical and specialized inspection service provided by all carriers.

4. Casualty (Liability) Coverage (required by most states; broad, comprehensive coverages should be sought). Coverages should include:

a) Basic, comprehensive coverage (e.g., $500,000 to $1,000,000).

b) Umbrella coverage (coverage over and above the basic and usually contains few exclusions).

c) School board liability (errors and omissions) and employee liability.

d) Awards for damages (special, general and punitive)

5. Workmen’s Compensation (required by law).

6. Automobile Insurance (the following coverages shooed be included):

a) Liability

b) Collision

c) Comprehensive

d) Medical Payments

e) Uninsured Motorist

Note: Wisconsin requires a physical every 3 years and a driving record of any employee or volunteer who will be either driving district vehicles or transporting students.

C. The third group includes employee benefits not usually included in the first group. These also could be a part of negotiated agreements. They should be considered for the positive benefits and “good will” that they afford. Usually these benefits do not incur a net cost to the district. In some cases they will actually allow the district to realize a net savings through their installation. They include:

1. Tax Sheltered or Deferred Annuities (these allow any employee to payroll deduct tax deferred amounts into an individual retirement annuity)

2. Section 125 Employee Benefit Plans (these plans allow employees to payroll deduct on a tax-deferred basis certain payments for specified categories of health care and other payments they make. Both district and employees benefit by paying lower FICA tax. This savings can, if the plan is installed correctly, more than offset the cost of administrative fees. These plans have the potential of “grossing up” the paycheck of participating employees.)

a) Premium only plan (where only the employee’s portion of health insurance premiums are sheltered).

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b) Full plan (where additional payments for allowable services are sheltered). These include the following in addition to other covered categories:Eye care, including contact lenses

(1) Dental care and orthodontics

(2) Childcare

(3) Medical and hospitalization insurance deductibles

(4) Braces and other prosthetics

(5) Certain types of prescribed therapy

(6) Many other categories

Note: Due to the limited nature of the foregoing discussion, it is strongly sug-gested that authoritative sources on each of the topics covered be consulted as the various aspects of an insurance and risk management plan are developed. An excellent general source is Principles of School Business Management, R. Craig Wood, Ed.D., editor (1986), published by the Association of School Business Officials International, Reston, Virginia. Most of the foregoing dis-cussion was adapted from that source.

Specific information on different types of insurance coverage and employee ben-efits can be obtained from any of the many providers of such services, including companies and agents or brokers in the local area.

II. INSURANCE/RISK MANAGEMENT EVALUATION

A. To maintain public trust it is incumbent upon the local school business official to assure that the community is protected from potential losses. The school business offi-cial must, therefore, develop an insurance program which protects the district from all aspects of liability and property damage losses. In today’s complex climate of business operations the management of an adequate insurance program is a multi-faceted task. It should be continuously evaluated and updated as necessary to meet new require-ments placed on the school district through court decisions and legislation.

B. Evaluation criteria for this section are contained in the following Checklist.

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INSURANCE/RISK MANAGEMENT CHECKLIST


1. PROPERTY INSURANCE

a) Physical Damage Insurance provides coverage for property, including buildings, contents, and monetary items against loss from specified perils. Its primary purpose is to indemnify the insured against the large loss; the degree to which the insured is willing to assume the risk of the smaller loss by incorporating deductible amounts will have an impact on the cost of premiums.

Several specific coverages exist. Every coverage included in the following lists would not be appropriate for every district.

b) Available Property Coverages:

(1) Fire insurance

(2) Deductible fire insurance

(3) Builders risk

(4) Vandalism and malicious mischief

(5) Replacement cost

(6) Glass insurance

(7) Sprinkler leakage

(8) Flood insurance

(9) Office personal property

(10)Improvements and betterments insurance

(11)Extended coverage

(12)Boiler and machinery

(13)Consequential damage

(14)Inland marine insurance

(15)Valuable papers and records insurance

(16)Fine arts policy

(17)Time element insurance

(18)Extra expense insurance

(19)Rent or rental value insurance

c) Fire insurance is carried on all buildings and contents as part of a multi-peril policy.

d) Property and contents are insured at replacement value.

e) There is an up-to-date appraisal of all real property.


f) A recent statement of values is on file for each building and contents.

g) The policy is written on a “blanket” basis covering all properties.

h) Coinsurance terms are complied with or there is an “Agreed Amount” endorsement waiving coinsurance clause.

i) An “All-Risk" or “Special” form applies.

j) Coverage is provided for extra expenses which might be incurred as a result of loss.

2. LIABILITY INSURANCE

a) Liability Insurance will make payment on behalf of the insured to a third party if the insured is proven to be negligent or otherwise legally liability and will provide legal defense if sued. The costs of defending such suits and the resulting judgement and settlements may be high and could have a devastating effect on an organization if not adequately insured. When dealing with property insurance, the possible loss is limited to identifiable values, but liability exposure has no such limitation.

b) Available Liability Coverages

(1) General liability insurance

(2) Comprehensive general liability

(3) Contractual liability

(4) Owners protective liability

(5) Produce liability

(6) Medical payments

(7) Workers compensation insurance

(8) Automotive liability

(9) Employer’s non-ownership liability

(10)Hired cars

(11)Collision

(12)Comprehensive

(13)Aviation insurance

(14)Aircraft policy

(15)Umbrella liability insurance

c) Comprehensive general liability coverage is carried.

d) Limits of liability are adequate.

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e) Comprehensive general liability includes the broad form CGL endorsement.

f) Personal injury liability coverage is provided.

g) School physicians, dentists, and nurses contracted by the school districts are covered for malpractice.

h) Employed social workers, nurses, psychologists, and other special education staff are covered for professional liability while acting within the scope of their employment.

i) School officials, employees, and volunteers are included as additional named insureds under the comprehensive general liability policy.

j) Product liability coverage is provided.

k) Coverage is provided for use of premises and equipment by other than school employees.

l) School sponsored activities, both on and off school property, are covered.

m) If elevators are present, elevator collision liability is covered.

n) Others performing services under contract have provided evidence of “Liability and Worker’s Compensation Insurance.” The district is named as an additional insured.

o) Athletic participants liability coverage is included.

p) Teachers liability, including corporal punishment, is included.

q) Employee benefits liability is included.

3. BURGLARY AND THEFT

a) Burglary and theft coverages are carried (or included under “All-Risk” or “Special” Property Insurance coverage).

b) Money and securities are covered both on and off premises.

c) Coverage is sufficient to cover periods of peak receipts.

d) Depositors forgery coverage for loss due to alteration or check forgery is provided.

e) All employees are covered by a blanket fidelity bond for fraudulent or dishonest acts.

4. INLAND MARINE INSURANCE

a) Provision is made for the reproduction of valuable papers.

b) Coverage exists for school district property which is mobile in nature while in transit either on or off district property.

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c) The policy includes musical instruments, band uniforms, cameras, audiovisual equipment, computers, data processing equipment, landscaping equipment, lawn mowers, paintings, and other non-licensed equipment.

d) The equipment is covered for the replacement cost of each item.

e) An inventory list of all covered equipment is kept up-to-date and on file with the insurance company.

5. BOILER AND MACHINERY INSURANCE

a) All boilers, any fired pressure vessel, and unfired vessel normally subject to vacuum or internal pressure, any refrigerating vessels and piping, or any piping and accessory equipment is insured.

b) Annual inspections are made by a qualified inspector and a file maintained for each location.

c) Certificates issued by the Department of Industry, Labor & Human Relations and/or OSHA are currently displayed at each pressure vessel or boiler location.

d) The policy is written in broad form and limits are compatible with liability coverages.

e) Other mechanical or electrical machines or electrical apparatus used for generation, transmission, or utilization of mechanical or electrical power is insured.

f) Any transformer or electrical apparatus owned by a public utility company which is used solely to supply electrical power to the premises of the insured is covered.

g) Repair or replacement coverage is provided.

6. FLEET INSURANCE

a) Fleet Insurance meets State of Wisconsin requirements for vehicle insurance coverage and provides protection against losses from property damage, bodily injury, personal injury, etc., arising from accidents and other catastrophes in which vehicles, school-owned and non-owned, are involved.

b) Liability insurance pays all sums the insured legally must pay as damages because of bodily injury or property damage caused by accidents and resulting from ownership, maintenance, or use of a covered auto. Liability limits are usually stated as a combined single limit (CSL). This coverage includes the provision of legal and other defense costs.

c) Comprehensive coverage is carried to pay for loss to covered vehicles from any cause except collision.

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d) Specified Perils coverage provides loss to covered vehicles from causes such as fire, explosion, theft, windstorm (i.e., peril must be named to covered).

e) Collision coverage provides loss to covered vehicles from collision with another object or its overturn.

f) Other coverage is carried for such items as towing and transportation expenses.

g) Uninsured Motorist insurance covers sums the insured is legally entitled to recover as damages from the owner or driver of an uninsured motor vehicle resulting from bodily injury.

7. GARAGE KEEPER’S LEGAL LIABILITY (IF AN AUTO MECHANIC SHOP IS OPERATED

a) A garage keeper’s legal liability policy is carried.

b) Provision is made for coverage on fire and explosion, theft of auto, riot, civil commotion, malicious mischief, and vandalism.

c) Garage Liability coverage is carried or exposures are covered under “Comprehensive General Liability Policy.”

8. UMBRELLA LIABILITY

a) Umbrella Liability insurance is carried and extends the limits of the underlying comprehensive general liability insurance coverage. It also covers a broader array of insurable losses that the underlying CGL policy.

b) Names insureds are the same as underlying liability coverage.

c) Full legal defense coverage is provided in addition to applicable limits.

d) Coverage is coordinated with Comprehensive General Liability and Fleet Insurance underlying limits.

e) Limit of employers liability coverage B is coordinated with Worker’s Compensation coverage.

9. SCHOOL BOARD LIABILITY (ERRORS & OMISSIONS)

a) School Board Liability coverage (also known as “Errors and Omissions”) is carried to protect the insured from the costs of legal actions arising out of real or alleged errors, omissions, or negligent acts committed in the course of official school duties.

b) Coverage includes the school district, all members of the Board of Education, officials, employees, and volunteers.

c) “All prior acts” coverage is required.

d)

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e) Full defense coverage is provided in addition to applicable limits.

10.WORKER’S COMPENSATION INSURANCE

a) State Workers’ Compensation laws are designed to cover work related illnesses and injuries, including work related deaths. Prior to these laws, the established principle of common law held that the employer was responsible for injury or death of employees resulting from negligence of the employer. The disabled workers had to sue and provide negligence, often a slow and costly process. Worker’s compensation laws established means of recovery for medical and hospitalization costs. They also provide a partial reimbursement for loss of wages and death benefits. All employees of the school district are covered by workers’ compensation.

Workers’ compensation insurance provides the following benefits to employees:

(1) Loss of income provides partial payment of wages which are lost due to occupational injury or disease. Death benefits are also provided.

(2) Medical expenses pay for treatment of injury or occupational disease.

(3) Approved rehabilitation is considered a part of medical treatment.

(4) Occupational disease is covered as well as accidents.

b) Loss Experience is obtained and reviewed regularly.

c) Payroll department maintains the record of absences due to work connected injuries.

d) Individual claim files are established upon notification of pending claim.

e) All accident reports and claims are reviewed by the business official.

f) Private contractors doing work on school premises have provided evidence of workers’ compensation insurance coverage for their workers.

g) A written process has been developed for reporting job related illnesses/injuries (accident report form, name of company doctor, timeliness for reporting to supervisor, etc.).

11.UNEMPLOYMENT INSURANCE

a) Wisconsin unemployment law requires Wisconsin employers to contribute toward payments of unemployment insurance for qualified persons.

b) Sufficient monies are budgeted each year for unemployment liability.

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12.GENERAL

a) All policies are kept in the Board of Education vault or safe.

b) Copies of all open claims are retained in office and reviewed regularly for status.

c) Copies of loss experience reports are obtained from insurers and reviewed regularly for status.

d) An insurance roster and/or schedule of coverages and expiration dates is maintained.

e) Appropriate bidding practices are conducted for all insurance coverages.

f) The school district is named as an additional insured in a contractor’s insurance policy for property damage and liability coverage. Certificates of insurance are on file in the business office.

g) A safety committee meets periodically to review accident reports.

h) All work related injuries are reported to the business office for reporting and investigation.

i) A program for periodic building inspections is in place and functioning.

j) Self-insurance has been considered as an alternative to fully insured plans.

k) A multi-year history is maintained to evaluate long-term costs and benefits of each self-insured program.

13.OTHER AVAILABLE COVERAGES

a) Crime insurance.

b) Blanket crime policy.

c) Dishonesty, destruction, and disappearance policy.

d) Fidelity bonds.

e) Notary public bond.

f) Data processing equipment policy.

g) Fiduciary liability insurance.

h) Special events liability insurance.

i) Tuition refund plan.

j) Student sickness and accident insurance.

k) Travel accident insurance.

l) Legal expense insurance.

m)

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n) Medical and hospitalization insurance.

o) Dental insurance.

p) Vision care insurance.

q) Disability insurance (long-term or short-term)

r) Life insurance.

s) Tax sheltered annuities.

t) Section 125 Employee Benefit Plans.

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REFERENCES

Principals of School Business Management, R. Craig Wood, ed., ASBO International, Reston, VA, 1986.


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CHAPTER 7

DEBT SERVICE MANAGEMENT

INTRODUCTION

A school district may borrow for operating cash flow purposes, capital improvements, equipment, or to pay off the district’s prior service pension liability with the Wisconsin Retirement System (if such a liability exists).

Short-term operating loans, called tax and revenue anticipation note (TRAN’s) are used for cash flow purposes while long-term general obligation bonds or promissory notes are generally used for capital purchases and improvements. There are a number of options available for referendum and non-referendum borrowing. Public finance advisors can be consulted to develop a debt issue which meets the needs of the district while minimizing the net interest costs and overall impact on the debt service property tax levy.

Internal Revenue Code Section 265 addresses how tax-exempt municipal bonds are sold or traded. A review of the IRS requirements prior to borrowing can eliminated unexpected tax code prob-lems later on. State municipal debt regulations must also be understood and followed prior to issu-ing debt. A qualified bond counsel (attorney) should be consulted on a number of issues well prior to entering into any borrowing transactions.

Proper planning for debt issuance will serve to minimize costs and insure compliance with federal and/or state borrowing regulations, while helping to inform the community on the need for the borrowing.

The different type of debt issues are discussed in Sections I through IV. Planning for debt issuance is covered in Section V.

I. TEMPORARY BORROWING (Tax and Revenue Anticipation Notes)

A. State legal requirements - Wisconsin Statutes 67.12 (8)(a)(1)

1. Purpose must be for immediate expenses.

2. The amount must the lessor of one half the estimated current year operation and maintenance receipts or the maximum cumulative cash flow deficit as determined by federal arbitrage regulations.

3. The timing of the borrowing must take place after the budget and tax levy are adopted by the board of education for the current year (Wisconsin Statutes 67.12(8)(a)(2) provides for alternative procedures)

4. The term of the borrowing may extend until November 1 of the following year but may not exceed 13 months.

5. The board of education must authorize a resolution including all pertinent details of the borrowing including the name of the lender or purchaser of the note(s).

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6. The district must comply with Wisconsin Statutes pertaining to Open Meeting Laws: Chapter 19, Subchapter IV, and Subchapter V.

7. The contents of the open meeting notice must be complete and include:

a) Time of meetings

b) Location of the meeting

c) Agenda items pertaining to the temporary borrowing.

8. The notice must be communicated in the following manner:

a) Sent to the district’s official newspaper.

b) Sent to any local news media requesting notices of school board meetings.

c) Posting the agenda in at least three district locations where such notices are normally posted, or by publishing a legal notice in district’s official newspaper.

B. Federal tax law: Internal Revenue Code requirements

1. Internal Revenue Code section 148 prescribes arbitrage restrictions as summarized:

a) Purpose must be for district expenditures, not merely for investment.

b) The amount of borrowing must be determined as the cash flow deficit plus any reasonably necessary cash balance and must be calculated on the Arbitrage Computation Form.

c) The term of the borrowing can be for 13 months or 60 days after the date of final payment of property taxes (normally August 20).

d) An arbitrage certificate must be prepared and executed by a district officer (normally the Clerk of the board of education).

2. Arbitrage rebate restrictions under section 148(f):

a) All arbitrage profits (investment return in excess of borrowing rate) made by investing the borrowed funds must be rebated to the federal government, except for:

3. Where the district issues less than $5 million in tax exempt issues in any calendar year. Long-term debt issued in any calendar year is included under the $5 million cap. (Small Issuer Exception)

4. If within six months, the actual cash flow deficit exceeds 90% of the face amount of the temporary borrowing. (Safe Harbor Rule)

5. Other Federal Legal Requirements:

a) IRS Information Report, Form 8038G must be completed. Form 8038GC is used for borrowings of less than $100,000.

b) The notes must be issued and maintained in registered for.

c) Where a district’s total tax-exempt borrowing is less than $10 million in any calendar year, the borrowing can be designated as “Bank Qualified.” Notes car-

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rying a bank-qualified designation provide certain financial advantages to banks and normally result in a lower interest cost to the district.

6. Federal securities law, SEC Rule 15c1-12 requires the dissemination of informa-tion in conjunction with offerings of municipal debt obligations to underwriters who bid on the district’s borrowing.

II. LONG-TERM BONDS AND NOTES

A. The Board of Education adopts a resolution (Initial Resolution) that states the purpose and the maximum amount of the borrowing. When the Board adopts such a resolution, the district clerk must publish a Class 1 notice of the adopted resolution within ten days after date of adoption. The Board must also take one of the following actions:

1. Direct the Board clerk to call a special referendum election or direct that the reso-lution be submitted at the next regularly scheduled election. With either option, there must be a 45-day (or more) period between Board adoption and the election.

OR

2. Specify within the initial resolution: the date, the time and the location for a public hearing on the resolution which must take place within ten (10) days subsequent to the publication of the notice. The notice must also specify whether the hearing is for informational purposes only, or, whether the electors present at the hearing will be given the opportunity to vote if a referendum shall or shall not be held.

B. Public Hearing

1. If the decision is made that the hearing is for informational purposes only, the dis-trict may then proceed to issue bonds provided a petition for referendum is not filed with the district clerk within 30 days immediately subsequent to the public hearing. The petition must be signed by the lesser of at least 7,500 electors of the district or 20% of the electors who voted for governor in the most recent general election.

2. If the decision is made that a vote will be taken at the public hearing on whether or not a referendum shall be held and a majority of the electors present and voting determine that a referendum should held, the Board of Education then proceeds as they would if the Board was requiring a referendum (per II (A)(1) above). However should the vote determine that no referendum shall be held, the Board can then proceed to issue bonds if no petition for referendum is filed within 30 days subsequent to the hearing (WI Stat. 67.05(6a)).

3. CAUTION: Issuing long-term bonds without holding a referendum election may have an adverse impact on operating budgets under current Wisconsin school dis-trict revenue-control laws.

C. The third option is to borrow funds through promissory notes to be repaid within a period not to exceed ten years from the original date of the note. Under this procedure, the Board of Education would adopt an initial resolution stating the maximum amount proposed to be borrowed and the purpose for the borrowed funds. The district must then publish a Class 1 notice indicating amount, purpose, and that the resolution was adopted under Wisconsin Statutes 67.12 (12). The notice must also disclose the place and times during which the resolution can be inspected.

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If no petition for referendum is filed within fifteen days after publication or posting, the Board may then proceed to issue general obligation promissory notes. The number of petitioners required would be the same as other referendum petition requirements: the lesser of 7,500 electors or 20% of the electors voting for governor in the most recent general election.

Obviously the major disadvantage to this option would be the ten-year payback period as opposed to twenty year for general obligation bonds. However it may be possible under Wisconsin Statutes 67.05(15) to refund these promissory notes up to a combined maximum of twenty years without a referendum.

Again caution should be used as this type of borrowing may have an adverse impact on operating budgets under current Wisconsin revenue control laws.

D. Bond Anticipation NotesBond Anticipation Notes (BAN’s) allow a school district to borrow short-term funds against a future long-term bond issue. These notes typically have six to twelve month maturities although it may be possible to “roll” these notes for a longer period. These notes may be used for a number of different purposes when a long-term debt issue is being planned. In order for a long-term debt issue to be paid “outside” revenue controls, a referendum is generally required. Since the neither the timing of the refer-endum or the commencement of the construction project may not coincide with good timing for committing to long-term interest rates, a BAN can be issued to provide the district with funds while anticipating a decline in long-term interest rates.

Another purpose of BAN’s is to facilitate the method of selling a bond issue. Wisconsin municipal finance laws require any new bonds issued by school districts to be competitively bid. Refunding bonds, on the other hand, are eligible for a negotiated sale. BAN’s can be sold through competitive bidding then “refunded” with long-term debt using either competitive bid or negotiated sale approach.

A third purpose of the Bond Anticipation Note is to maximize investment earnings on debt proceeds. Where a BAN is issued with a six-month maturity and the correspond-ing long-term bonds are issued shortly thereafter, both BAN and long-term bond pro-ceeds can be invested at rates that will likely exceed the BAN/bond rates by 1% to 2%.

III. STATE TRUST FUND LOAN

Yet another option for long-term borrowing is through the state’s Board of Commissioners of Public Lands, Madison, Wisconsin. This borrowing is in the form of a promissory note and normally can be accomplished without the aid of a financial advisor/underwriter. In fact, the required legal opinion is provided by the Attorney General’s office thereby saving the district legal expenses.

Note: Under current revenue control laws, the State Trust Fund loan is a good alternative for borrowing under a district’s $1 million “non-referendum” borrowing capability. This is due to the fact that many bond attorneys will not provide a legal opinion where the debt service levy is subject to the revenue control limits.

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The State Trust Fund loan process:

A. Request an application on district letterhead from the Board of Commissioners of Pub-lic Lands, 110 E. Main Street, Suite 701, Madison, WI 53703.

B. Complete the “Worksheet for School District Application Request” which will include the following:

1. Official name of the school district

2. Contact person and telephone number

3. Contact address

4. Name of District Administrator and telephone number

5. Purpose of loan with appropriate documentation

6. Amount of the loan requested

7. Expected dates bids will be accepted or purchasing will commence

8. Term of loan (not to exceed 10 years)

9. Estimated completion date of project or delivery date of equipment

10. Date of next scheduled Board of Education meeting

11. Type of borrowing forms the district will require depending on borrowing proce-dure to be used:

a) Ten year promissory notes

b) Special meeting

c) Annual meeting

IV. LIMITED REFERENDUM-FREE BORROWING AUTHORITY UNDER WISCONSIN STATUTES 67.05(6a)(b)

A. A school district can avoid the referendum procedures and process if the amount they wish to borrow through bonding or promissory note causes the aggregate long-term debt of the district, borrowed after August 1992 without referendum to be equal to or lesser than:

The lesser of:

(1) $1,000,000 /or/

(2) 1.5% of the State average valuation per member multiplied by the school district’s membership.

B. Caution: Borrowing without a referendum-even from the State Trust Fund-may have an adverse impact on district operating budgets under current Wisconsin revenue-control laws.

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V. PLANNING FOR BOND OR NOTE ISSUANCE

A. Professional Assistance-Financial Advisors

There is no legal requirement for a school district to seek assistance from municipal finance professional when issuing bonds or promissory notes. However, given the complexities and competitiveness of the present bond marketplace, such professional advice is important. In fact, a good financial advisor can efficiently handle nearly all phases of a bond or TRAN issue.

B. The Financing Schedule

Either the financial advisor or the bond underwriter, depending on the type of sale, will develop a financing schedule which will serve to establish deadlines and completion dates for the work of all the parties involved in the debt issuance. It is the responsibil-ity of the financial advisor or underwriter to keep the project on track and to assure the sale occurs at the desired time. It is imperative however, that the district business man-ager be fully informed on all phases of the borrowing process and has a good under-standing what is expected of district personnel or Board of Education.

C. Timing of the Sale

Timing will depend on the cash flow needs of the issuer and current bond market conditions. A reasonable lead-time will be required to develop the issue, submit data to credit rating agencies, and prepare the official statement.

D. Structure of Bonds or Notes-Maturity Schedule

The maturity schedule developed for the bond/note issue will depend primarily on the district’s projection of the effect of debt service payments on the local property tax levy. The debt repayments can be structured to effect nearly equal annual payments, increasing annual payments to take advantage of growth in property tax values, or declining payments if further borrowing is anticipated in the near future. It should be noted that the longer the repayment schedule, the higher the average interest rates will be.

E. Competitive Sale versus Negotiated Sale

Both approaches have been used by school districts for many years suggesting that either approach works well depending on the situation. Much has been written on the advantages and disadvantages of each, but a new bond issue should be analyzed inde-pendently to determine the best approach. The decision to go competitive or negotiated should not be automatic-the best interests of the district must be considered.

1. Competitive Sale: After appropriately advertising the sale, bonds or notes are sold to the bidder offering the lowest net interest cost to the district. An Official State-ment must be prepared and circulated to underwriters or financial institutions to attract a broad category of bidders.

a) Advantages:

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(1) Because the sale is put to the market in a competitive bid format it is assumed that the lowest possible interest rate, given current market conditions, will be received.

(2) Gross underwriter spreads are lower under this approach.

(3) It avoids the potential appearance of favoritism towards a particular underwriter.

b) Disadvantages:

(1) Where market demand for this issue is unpredictable, the underwriter may submit a bid with a risk premium.

(2) The selection of the underwriter is out of the hands of the district since the lowest qualified bidder will typically gain the right to underwrite the issue.

(3) The district may have less margin to change the timing of the bid offering if district circumstances change.

2. Negotiated Sale: The district (issuer) selects a bond underwriter to assist in struc-turing and marketing the proposed debt issue. An Official Statement must prepared under this approach as well, however this will generally be prepared by the underwriter.

a) Advantages:

(1) The district can select the underwriter prior to going into the market. This may be helpful if trying to avoid a poor underwriter.

(2) Where an underwriter is selected prior to offering, the district can procure assistance from the underwriter with important issues such as market tim-ing and official statement preparation.

(3) Where the underwriter has sufficient time to aggressively market the issue, a lower interest rate can be achieved.

b) Disadvantages:

(1) The most significant problem with this approach is for the district to deter-mine if the underwriting fees accurately reflect the services provided by the underwriter.

(2) If the fees appear to be high and/or interest rates tend to be higher that the current market, then a perceived-or actual--lack of independence will be present.

F. The Bond Rating Process

The importance of a certain bond rating is currently a topic of discussion among school business administrators. While an investment grade rating is certainly impor-tant in lowering interest costs on long-term debt issues, there appears to be no over-whelming evidence that getting a short-term rating has a significant impact on rates for tax and revenue anticipation notes (TRAN’s).

1. The Rating Process

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The rating process is similar among the three primary rating companies; Moody’s Investors Service, Standard & Poors, and Fitch Investors Service.

Step 1. The district (or underwriter) must first request a rating from one of the rat-ing agencies.

Step 2. The district may be required to complete a rating form in order to enter a request into the rating agency’s administrative system.

Step 3. The rating agency assigns a team of analysts to work on the rating for this issue.

Step 4. The rating analysts first perform research on the district from in-house databases and files.

Step 5. The analysts then review district financial and demographic information received from the district and prepare a preliminary credit analysis. This report will only cover a basic overview of financial, employee and demo-graphic information required by the rating agency. A review of a standard official statement will help provide an understanding of the data required under this step.

Step 6. The rating analyst will conduct face-to-face meetings or phone confer-ences with the district in order to discuss financial condition and address other questions about the district.

Step 7. The rating analysts prepare a final credit analysis and present this to the agency’s executive rating committee.

Step 8. The executive rating committee reviews the analysis and votes on the rat-ing to be assigned.

Step 9. The district is notified of the assigned rating. This is the final step unless the district desires to appeal the rating by providing the rating analysts with additional information that could support and improved rating.

G. Applying for a Credit Rating

Good financial practices in years prior to applying for a credit rating are important in securing a good bond rating. Each rating agency has its own specific list of informa-tion requirements. The lists are similar among these agencies and much of this infor-mation is already being prepared for use in the official statement.

A suggested list of information to be provided to a rating agency is as follows:

1. General information about the district

a) location, land area, population

b) governance (board) and administration

c) facilities

d) number of certified and non-certified staff

e) historical and project enrollment data

2. Property tax information

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a) history of equalized values

b) history of assesses values

c) equalized value of district’s largest property tax payers

d) equalized and assessed property tax rates

e) delinquent taxes

f) tax rates of overlapping jurisdictions

g) tax assessment and collection procedures

h) maximum authorized tax rates and referendum information

3. Debt information

a) statement of district’s debt and the debt of overlapping jurisdictions

b) principal and interest maturities for current outstanding debt

c) the district’s debt limit calculation

d) the district’s future borrowing plans (if any)

e) short-term debt history

4. Economic information

a) local and regional employment data

b) largest employers plus number of employees in the district

c) local and regional economic development data

d) other demographic characteristics of the district

5. District Financial Information

a) 3 to 5 years of complete audited financial statements

b) detailed breakdown of major revenue sources

c) current and prior budgets

d) actual and projected cash-flow data

6. Description of Bonds and/or Notes to be Issued

a) authority for issuing

b) purpose

c) structure: security, denominations, maturity, payment dates

d) credit enhancements (bond insurance, letter or credit, other)

H. Credit Enhancements

What happens if the district may not be able to obtain a good bond rating given its cur-rent financial condition? Municipal bond insurance or a backup letter of credit may be appropriate.

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1. Municipal bond insurance: Purchasing bond (or note) insurance will earn a top rating from the bond rating agencies. Essentially, the bond insurance will pay the bondholder in the event the district defaults. This reduced risk to purchasers of the bonds results in a lower interest rate. Caution: Bond insurance may not be eco-nomically feasible for your bond issue. If your district has a reasonably good bond rating, the additional cost of bond insurance may not be offset by lower interest rates.

2. Backup letter of credit: These are purchased from a bank and are generally more expensive. The letter of credit substitutes the credit of the bank for the credit of the district issuing the bonds.

VI. ARBITRAGE AND DISCLOSURE RULES

Arbitrage, in relation to municipal bonds, exists when proceeds from a low-rate municipal bond issue are invested in higher-rate taxable securities. Consider that with a multi-million dollar bond issue and an interest rate spread of 1.5% to 2%, the interest earnings can be significant. Because this was a matter of practice for many governmental agencies, the Tax Reform Act of 1986 effectively eliminated this practice except for certain 'safe harbor' conditions. However, a district can invest in high yielding investments and qualify for safe harbor exceptions under the following circumstances:

A. For construction related debt, a two-year spend-down rule applies to the debt proceeds. 10 percent must be spent within six months, 45 percent should be spent within 12 months, 75 percent should be spent within 18 months and 100 percent should be spent within 24 months. A reasonable amount of retainage (not exceeding 5%) may be able to be carried over for an additional 12 months.

B. A district can qualify for the “small issuer exemption” if less that $5 million is issued annually and at least 95% of the debt proceeds are spent for public school district activities.

C. A district can eliminate the arbitrage problem altogether by investing the bond pro-ceeds in securities that pay no more than 1/8 of a percent above the interest rate paid on the bonds.

Implementation of the arbitrage laws can be very complex and will likely require the assis-tance of a financial advisor or bond counsel. In the event the issuer does not meet the exceptions noted previously, a rebate payable to the IRS must be calculated. The penalties for failing to observe the arbitrage rebate requirements can have serious consequences. The bond issue could be treated as a “arbitrage bond” and therefore lose its tax-exempt status, retroactive to the date of issuance.

VII. MUNICIPAL BOND DISCLOSURE REQUIREMENTS

As of July 1995, issuers of municipal securities will be required to comply with the fol-lowing disclosure requirements:

A. Prepare official statements meeting certain comprehensive content requirements as contained in Securities and Exchange Commission (SEC) Rule 15c2-12.

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B. File financial and operating data as prescribed by SEC Rule 15c2-12(b)(5), with national municipal securities information repositories.

C. File announcements of significant events as set forth in SEC Rule 15c2-12(b)(5).

SEC Rule 15c2-12(b)(5) sets forth the requirement of annual information reporting and prescribes the type of information to be reported. These disclosure reports must be deliv-ered to nationally recognized municipal securities information repositories annually for the life of the bonds.

Each new bond issue will have a final official statement normally will contain a “Continu-ing Disclosure Certificate” which must be signed by the district Clerk. This disclosure statement establishes the information that must be reported, the due date for filing the annual disclosure report, and where the reports are to be filed. The signature of the district Clerk represents a “promise” to annually fulfill the disclosure requirements.

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TEMPORARY BORROWING CHECKLIST


1. Determine the amount to be borrowed by preparing a cash flow forecast.

2. Obtain certificate of equalized value of taxable property for the district, available from the Wisconsin Department of Revenue.

3. Prepare drafts or provide information to financial advisor for preparation of the following documents:

a) Clerk’s Certificate

b) Certificate of Compliance with Open Meeting Law Notice Requirements

c) Resolution adopted by Board of Education

d) Treasurer’s Certificate

e) Certificate of Full Equalized Value

f) Certificate of Estimated Receipts

g) Certificate with Respect to Arbitrage and Other Tax Matters and Computation Sheet

h) Form 8038-G or 8038-GC; Internal Revenue Service Information Report

i) Tax and revenue anticipation notes (TRAN’s) along with drafts of closing documents reviewed by bond attorney prior to taking bids or negotiating on notes.

4. Negotiate or bid the amount to be borrowed (may be done by financial advisor)

5. Schedule a board of education meeting to adopt a resolution authorizing the borrowing

6. At the board meeting:

a) Determine that a quorum is present

b) A majority vote is required to adopt a resolution setting forth the purpose, principal, interest rate, term and purchaser of notes.

7. Provide the bond attorney originals of closing documents as signed by the board officers for final review and preparation of a legal opinion.

8. Deliver documents to lender (unless handled by financial advisor or bond attorney)

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REFERENCES:

Zipf, Robert, How Municipal Bonds Work, New York Institute of Finance, New York, NY 1995.

Hildreth, W. Bartley, State & Local Government Debt Issuance and Management, Sheshun-off Information Services, Inc., Austin TX, 1996.

Aronson, J. Richard (Editor), Management Policies in Local Government Finance, 4th Edition, ICMA University, 1996.

Zipf, Robert, How the Bond Market Works, 2nd Edition, New York Institute of Finance, New York, NY 1988.

Standards & Poors, Municipal Finance Criteria, New York, NY, 1996.

Moody’s Investors Service, An Issuer’s Guide to the Rating Process, New York, NY, 1995.

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CHAPTER 8

STRATEGIC PLANNING

INTRODUCTION

Planning is the foundation of sound management and establishes the basis for intelligent direc-tion, cooperation, and change in an organization. Strategic planning is a proactive process that helps a school district assess its strengths and weaknesses, determine what it wants the future to bring (long-range planning), and helps chart a course to get to that future (short-range planning). The process of strategic planning also opens the decision making process to community members, teachers, students, parents, and support staff.

Key questions answered by the planning process include:

1. Where are we?2. Where do we want to go?3. What resources will we commit to get there?4. How do we get there?5. When will it be done?6. Who will be responsible?7. What will be the impact on human resources?8. What data will be needed to inform the planning process, monitor progress and measure

results?

I. AN OVERVIEW OF THE STRATEGIC PLANNING PROCESS

Strategic planning is a long-term process aimed at achieving a vision of a desired future condition. It allows school districts to decide where they want to go and how they want to get there. Strategic planning is a systematic process, which involves:

1. Identifying beliefs.2. Completing internal and external analysis.3. Identifying those factors crucial to the district’s success.4. Determining “where we are” and “where we want to go.”5. Completing an analysis of strengths, weaknesses, existing internal and external

opportunities, and threats, which may assist or constrain leaders in reaching their goals.

6. Developing a mission statement.7. Arriving at strategic goals and objectives.8. Developing action plans to accomplish goals and objectives.9. Arriving at a monitoring structure which would provide for an evaluation of each

action plan.

The whole notion of strategic planning revolves around the concept of developing a pro-cess which allows for continuous improvement, thereby, making the district more efficient on a “day to day” basis. The planning team will be involved in the development of “belief

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statements” specific to the school district resulting in a concise “mission statement” iden-tifying the overall objectives of the district. In addition, “strategic policies” will be devel-oped to assure the team stays on task accomplishing the intended objectives. These policies will be over-all guidelines for committee operation. An “internal analysis” leads to a thorough understanding of not only the strengths but the weaknesses of the existing systems.

“External analysis” will also be accomplished to provide an understanding of the environ-ment in which the school district must function. Community structure from the standpoint of demographics (population and ethnic background) will be important. A study should be made of the business community including a review of potential growth within the com-munity, which would require educational responses. Inherent in this review is the identifi-cation of “competing” institutions for the education of the school district’s youth.

“Objectives” accomplished through the strategic planning process are itemized by the planning team. The process includes the identification of the “strategies” needed to accomplish the objectives. Finally, “action plans” are established and assigned to action teams to be carried out after the planning team has concluded its efforts.

In order for the strategic planning team to effectively assimilate information relative to the current status of the school district, it is essential that a number of items be provided them and in a concise, meaningful format. It is suggested that a three-ring binder be provided to each team member containing relative information describing “where we are.” This three-ring binder will allow for additional information to he inserted as it is created. Initial infor-mation will include a five-year budget summary, identification of the curriculum cycle, staff development plans, as well as a staffing profile. There should also be a section on long-range plans in the area of library/media, computers/information management, and facilities use/development. Goals should also be included that include state, community (town meeting), and district initiatives from the last several years. Enrollment patterns will need to be identified showing growth trends and ethnic patterns. Projections will need to be made identifying gifted and talented and special education numbers. High school grad-uation requirements and the availability of higher education opportunities need to be con-sidered. A community profile is also important. It would be necessary for individuals to be assigned to each area for development.

“Action plan” implementation teams will consist of one member from the original plan-ning team and, more importantly, members from the larger group initially showing interest in Strategic Planning. Work that is done at the action team level will result in improve-ments in the selected activities. Each action team will cause specific tasks to be assigned to responsible individuals, determine a timeline and perform an analysis of the costs and ben-efits of the plan.

The plans developed by the action teams are presented to the original planning team for review and approval. The planning team may accept, reject or return for revision each of the plans submitted. After all plans are accepted by the planning team, they are forwarded to the Board of Education for approval and funding, which should be forthcoming as sev-eral members of the Board would be part of the preceding activities. The results are con-sidered the communities’ expectations.

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II. DEFINITIONS OF TERMS INTEGRAL TO THE STRATEGIC PLANNING PROCESS

BELIEFS: A statement of the organization’s fundamental convictions, its values, its character.

MISSION: A broad statement of the unique purpose for which the organization exists and the specific function it performs.

STRATEGIC POLICIES (PARAMETERS): Management pronouncements that establish the parameters within which the organization will accomplish its mission.

STRENGTHS: Characteristics which contribute to the ability of the organization to achieve its mission.

WEAKNESSES: Characteristics that limit the ability of the organization to achieve its mission.

ORGANIZATIONAL STRUCTURE: The arrangement of authority and responsibilities among people within an enterprise.

COMPETITION: Any entity that successfully attempts to fill the same need as the planning organization.

EXTERNAL ANALYSIS: An examination of those forces over which an organization has little or no control. External change usually impacts an organization by virtue of its existence in a larger, sometimes more complex situation.

OBJECTIVES: An expression of the desired, measurable end results for the organization. For a school district, objectives are likely to include such items as increased student success, performance, and/or achievement, enhanced safety, expanded access to school facilities, greater application of technology in instruction, and so on.

STRATEGIES: The broadly stated means of organization’s objectives.

ACTION PLANS: The explicit portion of a given strategy that outlines the tasks required to implement that program, the person responsible for each task, the due date for the completion of each task, and an analysis of the benefits and costs for the specific action plan.

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III. ROLE OF THE BUSINESS ADMINISTRATOR

Strategic planning for a school district cannot be accomplished by the business office alone. In fact, several key parts of the process must be performed by the board of educa-tion and the superintendent; however, the topic has been included in this manual for sev-eral reasons:

1. Business office personnel will play a key role in the process if implemented by the Board and/or Superintendent.

2. Many elements of the strategic planning process can be applied to business and support staff operations in addition to a district's overall operations.

3. The results of strategic planning require the commitment of resources that must be incorporated in the district’s financial plan.

4. Good planning in the business office will provide an example to the rest of the organization and may provide the stimulus for system-wide strategic planning.

The business administrator plays a significant role in the strategic planning process. The following specific beliefs are related to school business functions.

1. Students shall be provided with a healthy and safe environment.2. The district shall be operated in a business-like manner.3. Clients shall be treated in a courteous and helpful manner.4. Clients include students, parents, business representatives and community repre-

sentatives.

External analysis should include:

1. Interest trends.2. Cost of production and equipment.3. Income trends from federal, state, regional and local sources.4. Property assessed valuation.5. Cost of insurance.6. Cost of utilities.7. Client attitudes as gleaned through phone calls, letters, and surveys.

Internal analysis should include:

1. Client attitudes.2. Cash flow.3. Cost of fringe benefits.4. Employee union contracts negotiated.5. Profit/loss ratio for food services.6. Cost per mile for pupil transportation.7. Unit standard costs for custodial and maintenance services.8. Cost/benefit and cost/effectiveness ratios for automated versus manual procedures.

Critical success factors to strive for are:

1. A clean, healthy, and safe environment.2. An economical, safe and cost/effective transportation system.

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3. A balanced budget with a sufficient contingency funds to allow for a stable, high quality district operation.

4. Investment and purchasing procedures, which make the maximum funds available for the district operations.

5. An appealing, attractive and cost/effective food service program.

The school business administrator along with the business office staff will be responsible for developing its own mission statement. An example mission statement might read like this:

The mission of the school business office is that of operating as a highly successful busi-ness in a manner which functions as a supporting structure to the instructional operations of the district. In carrying out this mission, it is the intent of the school business office to:

1. Provide a healthy, clean, attractive, and safe environment for students, clients, and employees.

2. Provide effective income and expenditure procedures.3. Provide cost effective transportation which is safe and on time.4. Provide food services which are cost effective, appealing and attractive.

Some strategic goals relating to the mission could be:

1. To increase the percentage of total district income from investments.2. To develop a system of bulk, year-long purchasing of supplies, and to recruit other

school districts to join in a cooperative purchasing agreement take advantage of the economy of scale.

3. To develop an internal auditing procedure that guarantees that all discounts for early payment are taken, that all purchasing is done on the basis of specifications, and that, other things being equal, the bid award is given to the lowest bidder.

4. To computerize the transportation system to make it as efficient and effective as possible.

5. To equip the custodial and maintenance staff with state-of-the-art equipment.

One or more objectives will be developed for each strategic goal. An example would be:

Goal: To lower the cost of purchasing and maintaining computers.

Objective: To lower the cost of purchasing and maintaining computers by a minimum of ten percent by September 1, 2000, by arranging for a cooperative large-quantity purchas-ing agreement with 20 area school districts.

A single action plan format such as the following will provide the example necessary to understand the action planning process.

Tasks Chronology Who is Responsible When Completed How Measured

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Lastly, a monitoring structure needs to be devised. The school business administrator should have two types of monitoring in place. One type is the continuous analysis of exter-nal and internal factors which may affect the school district’s or school business office’s missions. The other type is that which constructs an in process monitoring of the level of achievement toward goals and objectives at various time periods. Both types are necessary to determine if and when modifications should be made.

The school business administrator is a crucial player in any school district’s strategic plan-ning. Even if the district is not involved in strategic planning, it behooves the school busi-ness administrator to conduct such planning in the business office. The following hints should be helpful at this point.

1. Strategic planning is a continuous process.2. Once a plan is developed, you need to manage it and monitor it to make any neces-

sary adjustments.3. Involve all crucial stakeholders in your strategic planning process.4. Develop action plans that will allow you to achieve your goals and objectives.5. Celebrate your successes and market your plan in a way that makes believers out of

the stakeholders.6. The more successful your operation, the better service you can provide to the

instructional programs, and the greater benefit to the students of the school district.

The following section provides the vehicle for evaluating the entire strategic planning pro-cess; however, the situation audit is covered in greater detail since this part of the process will most likely be the responsibility of the business office.

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CHECKLIST


I. ORGANIZING FOR PLANNING

A. The Board of Education has made a commitment to developing a strategic plan.

B. The superintendent is dedicated to committing the time and resources necessary to ensure a successful planning process as well as the implementation of its results.

C. All key segments of the school staff and community are involved in the planning process.

II. SITUATION AUDIT

A. The district has collected historical data for a minimum of 3 years, preferably 5 - 10, to facilitate the planning process in each of the following areas:

1. Property tax base (Assessed & Equalized Valuation)

2. Revenues by major function

a) State Aids

b) Federal Aids

c) Grants

d) Other local revenues (fees, fundraising, donations, etc.)

3. Expenditures in each of these formats:

a) Expenditures by Fund

b) Expenditures by Function

c) Expenditures by Program

d) Expenditures per pupil

4. Enrollment data by:

a) Total enrollment

b) By grade level

c) By school

5. Fund Balance

6. Mill Rates

a) For the school district

b) For other local municipalities

7. Staffing numbers

a) By employee group

b) By program

8. Salaries (total and average)

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b) By program

9. Benefits (total and average) by employee group


b) By employee

10.Pupil Teacher Ratios

a) By grade

b) By program

11.Population (not enrollment)

12.Debt

a) Direct

b) Overlapping

c) Ratio - Per capita

d) Ratio - Debt/Assessed Valuation

e) Ratio - Debt/Equalized Valuation

B. The district has collected current data in each of the following areas:



3. Expenditures

a) By Fund

b) By Function

c) By Program

d) By object

e) Per pupil


a) Total enrollment

b) By grade level

c) By school

5. Fund Balance

6. Mill Rates



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7. Staffing numbers


b) By program



b) By program



b) By employee


a) By grade

b) By program


12.Debt

a) Direct

b) Overlapping




13.Facilities - Building inventory

a) Number classrooms

b) Functional capacity

c) Year built

14.Equipment

a) Inventory

b) Useful life

C. The district has provided forecasts in each of the following areas:



3. Expenditures a) By Fund

b) By Function

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c) By Program

d) By object

e) Per pupil


a) Total enrollment

b) By grade level

c) By school

5. Fund Balance

6. Mill Rates



7. Staffing numbers


b) By program



b) By program



b) By employee


a) By grade

b) By program


12.Debt

a) Direct

b) Overlapping




13.Facilities - Building inventory

a) Number classrooms available

b) Number classrooms needed

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14.Equipment needs

III. EXTERNAL ANALYSIS

A. Demographic data is available in the following areas:

1. Family income

2. Housing patterns

3. Employment (numbers)

a) By occupation

b) By industry

4. Employers

a) Line of business

b) Number of employees

5. Unemployment

6. Retail sales

7. Transportation systems

8. Higher education availability

9. Recreational facilities

10.Health care facilities

11.Utilities

12.Public School Choice

a) Transfers-In

b) Transfers-Out

13.Other educational providers

a) Private schools

b) Charter schools

c) Home-based students

14.Financial institutions

15.Postsecondary service providers drawing high school students

IV. INTERNAL ANALYSIS

A. The district has a process for assessing current strengths and identifying present weaknesses.

B. The district has identified opportunities and potential threats in the future.

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V. MISSION STATEMENT AND GOALS

A. The district has developed a mission statement to provide a focus for the future.

B. The district has developed short and long term goals based on the mission statement.

C. The goals developed are clear, understandable and have broad support based on a priority consensus process.

VI. OBJECTIVES AND ACTION PLANS

A. Objectives are developed for each goal area.

B. Action plans have been developed for each objective.

C. Responsibilities have been assigned for each activity.

D. Timelines have been established for each activity.

VII. COMMUNICATION

A. Meetings were held with all staff members to communicate the strategic plan.

B. The strategic plan was clearly communicated and made available to community members.

VIII.EVALUATION AND ADJUSTMENT

A. An evaluation process has been established to monitor progress on a periodic basis (at least annually).

B. Based on feedback received the plan is modified on a periodic basis.

IX. STRATEGIC PLANNING CHECKLIST

A. Develop the structure of the Strategic Planning Committee. Representatives of the various stakeholders in the district should participate in the planning and decision making process.

B. The planning committee develops the mission statement of the organization.

C. The Board of Education critically reviews the annual budget and determines final allocation based on its annual plan including educational goals, objectives, and facility needs.

D. The district has an enrollment projection developed using recognized techniques such as a cohort survival method and known information about future growth, patterns in the district.

E. The district has projected the impact of the state-imposed revenue limits on its ability to maintain its programs and facilities over time.

F. The Board of Education has analyzed the impact of future enrollments on staffing, budget, facilities, and program, and has developed a long range plan to address needs in these areas.

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G. Long range projections of revenues and budget appropriations have been completed and plans developed to address any anticipated shortfalls.

H. Capital needs have been identified and a plan has been developed to address them.

I. A long-range facilities use plan, considering such factors as changes in enrollment, program needs, site needs, and community use, has been developed.

J. The Board of Education reviews long range plans periodically and adjusts them to reflect changes in priorities and/or needs.

K. The Board of Education adopts annual objectives for the district and evaluates itself and the administration on the basis of these objectives.

L. Staff and community input is used to develop long range plans for the district.

M. All staff is actively involved in the budgeting, planning and evaluation process.

N. The Board of Education has established sound fiscal procedures to insure the appropriate funding of education programs and the provision of attractive, standard, safe, and barrier-free facilities pursuant to law and regulation.

O. The Board of Education has established plans for use of school space considering such factors as enrollment, resources, program requirements and community needs, and the maximum benefit to the community.

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REFERENCES

Brassard, Michael, The Memory Jogger Plus+, Featuring the Seven Management and Planning Tools, Methuen, MA: GOAL/QPC, 1996.

Cook, William J., Ph.D., Strategic Planning for American Schools, Cambridge Management Group, Inc. 1990.

Cunningham, William G., System Planning for Educational Change, Palo Alto, CA: Mayfield Publishing Company. 1982.

Guide for Evaluating the Business Functions of a School District, New Jersey ASBO, 1975, updated 1985.

Hartley, Hany J., Educational Planning - Programming - Budgeting: A Systems Approach, Englewood Cliffs, NJ: Prentice Hall, Inc. 1968.

Herman, Dr. Jerry J., School District Strategic Planning (Parts I and II), School Business Affairs, February and March, 1989.

Scholtes, Peter R., Bayless, David L., Massaro, Gabriel A., and Rocke, Nancy K., The Team Handbook for Educators, Madison, WI, Joiner Associates, Inc., 1994.

Self-Evaluation Manual for School Business Management, Michigan ASBO, 1989.

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CHAPTER 9

OFFICE MANAGEMENT

INTRODUCTION

The main purpose of this chapter will be to present guidelines to follow in setting up procedures for structuring and operating a school district office. Besides the actual structure, or set-up, of the school business operation, it will illustrate hints in writing a good job description, dealing with a bargaining unit, determining compensation guidelines, establishing a job evaluation/placement system, developing a salary structure, establishing performance evaluation procedures, resolving office problems, and changes in employment status.

Matters pertaining to hiring guidelines, benefits and in-service programs are covered in the Per-sonnel Management chapter of this handbook so those subjects will not be re-addressed here.

I. STRUCTURING THE BUSINESS OFFICE

A. The exact structure of the school district Business Office will naturally be dependent upon the size of the district. Districts can be structured in various ways. In smaller dis-tricts the Superintendent, or even the district bookkeeper, might handle business mat-ters. Larger districts might require that someone be assigned office management duties to handle some of the more routine aspects of managing the Business Office. However, in many school districts, the business administrator invariably has overall responsibil-ity for the business aspects of the school district.

B. Those responsibilities that generally revert back to the business administrator include such areas as the Food Service Department, the Buildings and Grounds Department, Pupil Transportation, development of the annual budget, district insurance, purchasing, accounting, controlling the cash flow through investment of excess funds, supervising referendums and any subsequent building programs, negotiations and ven-dor agreements or contracts.

C. If the district is large enough to warrant the appointment of a person to an office man-agement position, that person should have responsibility for assignment of duties to other office personnel, directly supervising office attendance, acting as a resource per-son for employees having questions pertaining to the duties involved with the opera-tion of the Business Office, and the assignment of specific duties to Business Office personnel. The distribution of duties must be flexible enough so that if one person is unusually busy due to cyclical demands, other personnel are available to assist in meeting deadlines.

D. Evaluation criteria for this section are contained in Checklist 9-a.

II. WRITING A GOOD JOB DESCRIPTION

A. A well-written job description with complete information regarding duties pertaining to each position is important when evaluating jobs for placement on a salary schedule.

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B. If properly written, the job description can be a useful tool in helping an employer avoid the disruption and expense of litigating a discrimination claim under the Ameri-cans With Disabilities Act (ADA), since the ADA provides that job descriptions writ-ten before the employer advertised or interviewed applicants for a specific job may be used as evidence that particular functions are essential to the job.

C. Evaluation criteria for this section are contained in Checklist 9-b.

III. DEALING WITH A BARGAINING UNIT

A. Some of the districts have recognized bargaining units, such as unions or associations, representing the clerical employees. In those cases, the district and the bargaining unit are each responsible for determining compensation guidelines, establishing job evalua-tion/placement systems, developing salary structures, establishing performance evalu-ation procedures, and administering other provisions of the labor agreement.

B. Evaluation criteria for this section are contained in Checklist 9-c.

IV. COMPENSATION GUIDELINES

A. Compensation is the reward employees receive in exchange for their contributions of time, effort, and certain abilities. Because of the sensitivity of today’s taxpayers to school district costs, it is becoming increasingly important to control the cost of compensation. Since productivity often depends in part upon how well employees are motivated by the pay they receive for their work, it is often a challenge to effectively control compensation costs while continuing to motivate employees to perform at a high level

B. Also, by developing written guidelines, school districts can reduce the rate of turnover caused by lack of understanding or dissatisfaction with the compensation program. The number of grievances relating to the compensation plan and the costs of process-ing them also are likely to be reduced with a formal compensation program.

C. In some instances, office salaries are predetermined by the Human Resources (Person-nel) Department or are negotiated with a recognized bargaining unit rather than being determined by the Business Office. However, if the Business Office is responsible for establishing an office salary schedule, the following are some basic guidelines to con-sider while it is being developed.

D. Evaluation criteria for this section are contained in Checklist 9-d.

V. ESTABLISHING A SECRETARIAL JOB EVALUATION/PLACE-MENT SYSTEM

A. In some instances the Human Resources (Personnel) Department is solely responsible for the development of a Job Evaluation/Placement system; however, because other districts place that responsibility in the hands of the business administrator, it is being included in this chapter.

B. Secretarial job rankings may be determined by using various methods of evaluation, depending on the needs of the individual organization. Some districts may have no need for going into great detail in ranking the positions, while some of the larger dis-

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tricts may want the job placements to be clearly defined so as to provide a tangible and objective basis for determining where each position should be ranked within the salary structure.

Various methods of handling Job Evaluation/Placement are listed below:

1. Job Grade System

In the Job Grade System, jobs are classified and grouped according to a series of predetermined wage classes or grades. While this system has the advantage of simplicity, it is less precise than the Point/Factor comparison system, and it allows for the possibility that employees could perceive themselves as being victims of inequity because there is no fully defined system for placement.

2. Job Ranking System

The simplest and oldest system of job evaluation is the Job Ranking System by which all positions within the organization are ranked on the basis of their relative worth. In this system, jobs are ranked based on the various job descriptions which are reviewed by an individual or committee. Differences of opinion in rankings made by more than one person must be reconciled before placement into various ratings.

The basic weakness of this system is that it does not provide a very refined mea-sure of each job’s worth, and there is a danger that one or more of the factors will bias the ranking given to the job, particularly if the job is complex.

3. Job Factor/Point System

The Job Factor/Point System uses a complex methodology of assigning weighted point values to positions based on several compensable factors that are designed to reveal the relative importance of each position.

Job Factors can be a valuable tool in determining various categories for compensation, although the time required to develop, prepare, maintain, and evalu-ate formal pay programs can be considerable. However, the employees’ increased perception of fairness from having such a program can make the effort worthwhile.

With this method, jobs are evaluated by carefully reviewing the job descriptions and assigning a weighted point value based on predetermined factors or elements that reflect the demands of the job.

a) Determining Job Evaluation Factors

Job Factors are usually put into four major categories:

Skill - what does the person bring to the job?

Effort - how difficult is the job?

Responsibility - what is the impact of the job on the organization?

Job/Working Conditions - what special factors are involved?

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b) Assigning Point Values for Job Factors

The total point value of each of the four major categories should be prorated on a percentage basis among the sub-factors within each major category. Each of the sub-factors is then assigned weighted percentages and point values, or degrees. The number of degrees into which the sub-factors are divided can vary, depending upon the relative weight assigned and the ease with which the individual degrees can be defined or distinguished.

The Job Factors will vary depending on the individual district’s prioritization.

c) Developing a Factor Comparison Scale

Once the Job Factors have been divided into degrees, a Factor Comparison Scale must be prepared defining each of the degrees, as well as a general over-view statement explaining each job factor. Note that these descriptions should be written with guidelines that have been so clearly defined that it simplifies the task of those persons conducting the evaluation and slotting each position into the proper weighted degree of the various compensable Job Factors on the Point Values for Job Factors scale.

In order for a position to be placed on a particular degree of one of the com-pensable Job Factors, the job must fulfill every statement within the definition for that degree.

VI. DEVELOPING A SALARY STRUCTURE

A. Once the parameters have been set and the type of job placement method to be used has been determined, a salary schedule for office personnel must be developed. Generally it is preferable to group jobs into wage classes, or grades, and to pay all jobs within a particular class the same rate or rate range.

B. When the grade or classification system of job evaluation is used, jobs are grouped into classes as a part of the evaluation process. When the Job Factor/Point system is used, however, wage classes must be established at selected intervals representing either the point values or evaluated monetary value of these jobs.

C. After the various jobs have been listed in order of the point ranking, a wage scale can be developed which would assign salaries based on where each position ranks between specific point totals. Using Figure 1 as a basis, a typical wage scale could be structured as follows:

Wage Class Point Range Minimum Step Maximum Step1 180-344 $5.00 $8.00

2 345-508 $6.00 $9.00

3 509-672 $7.00 $10.00

4 673-836 $8.00 $11.00

5 837-1000 $9.00 $12.00

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This method allows for a great deal of flexibility in setting up an equitable wage structure. Obviously, there are many variations of wage scales that can be developed based on whatever sys-tem of evaluation is chosen.

D. Evaluation criteria for this section are contained in Checklist 9-e.

VII. ESTABLISHING OFFICE PERFORMANCE EVALUATION PROCEDURES

A. Performance evaluation occurs whether or not there is a formal evaluation program. It is an inevitable consequence of the way in which organizations are structured and jobs are designed. Superiors are constantly observing the manner in which subordinates are carrying out their assignments and forming impressions as to their relative worth to the organization.

B. Performance appraisal is viewed as a once-a-year activity; however, an effective per-formance appraisal system demonstrates feedback and coaching as a day-to-day activ-ity since coaching must be associated immediately and directly with the performance, or lack of performance, at issue.

C. New demands for performance accountability, brought about to some extent by the “belt-tightening” campaigns of taxpayers, have resulted in greater attention to perfor-mance evaluation. It is true there are some shortcomings of evaluation programs; however, a well-designed and properly used appraisal system can be a valuable tool in the effective functioning of most organizations.

1. Determining necessity of a formal Performance Evaluation

Most large and many small districts have developed a formal program that is designed to facilitate and to standardize the evaluation of employees. The success or failure of performance evaluations is dependent upon the philosophy by which it is established, the attitude of supervisory personnel toward it, the amount of train-ing given to the various supervisors in administering the program, and the supervi-sors’ skills in achieving the objectives of the program.

2. Determining Responsibility for Evaluation

By virtue of their positions in the organization, managers and supervisors have tra-ditionally performed evaluations of their subordinates. In order to reduce the chance of a superficial or biased performance rating, and to limit the possibility of being accused of discrimination, it is important that more than one management person review the evaluations.

Some believe it is important to offer the evaluators a uniform training program and to stress that no more than 5% to 10% of the workers should be rated in either the highest/lowest levels of performance. This can force evaluators to honestly identify strengths and weaknesses or areas of needed improvement for all employees.

3. Performance Evaluation Methods

The various evaluation methods that can be used are only as good as the evaluator.

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Evaluations can be used in different ways. It can simply be used in reviewing the performance of individuals on a broad general basis, or it can be used in conjunc-tion with a weighted point value scale in determining the amount of salary adjust-ment.

If the point value method is used, it is possible to assign weighted point values using a combination of evaluation methods. For example, a certain percent of the total score could be designated for the Performance Appraisal rating method based strictly on the manner in which the employee performed. Another percent could be designated for a Goals/Objectives method which places the emphasis on results through the achievement of previously stated goals. Using that combination, it would be possible to encourage not only good performance, but also the use of ini-tiative in attaining new goals or objectives.

4. Feedback of Evaluations

The success of the performance evaluation program is dependent upon the effec-tive utilization of the information that results from the appraisal process. First and foremost, the information should be communicated to the employee by the person or persons who made the evaluation. Preferably an interview can be scheduled free from interruptions. An interview provides the superior with the opportunity to dis-cuss the quality of performance and to explore areas of possible improvement or growth when necessary.

The key to successful interviewing lies in a versatile and flexible approach in which the procedure is adjusted to the method of evaluation that is used, the overall purposes of the evaluation, and the specific needs of the individual being inter-viewed.

In order to maintain a positive approach which will enhance staff morale, the inter-view should be carefully planned.

VIII. RESOLVING OFFICE PROBLEMS

A. At one time or another, every organization will have some type of a problem, whether it is a conflict between individuals or groups, a grievance that is filed by an employee, or an act or attitude requiring disciplinary action. It is imperative that problems in the workplace be acted upon promptly since the mere existence of a problem can affect productivity, cause hard feelings, and hurt team effort.

B. Evaluation criteria for this section are contained in Checklist 9-f.

IX. CHANGES IN EMPLOYMENT STATUS

A. Occasionally circumstances dictate that a change in the employment status of individ-uals within the office setting is desirable. It is a good idea to have specific guidelines to follow in those instances.

B. Evaluation criteria for this section are contained in Checklist 9-g.

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OFFICE MANAGEMENT CHECKLISTComplete In Progress N/A

I. Business Office Duties

A. Duties as the personal secretary to the Business Manager.

B. Completing the district payroll and preparing all the necessary tax, retirement, insurance and other liability reports and payments.

C. Performing functions within the accounts payable area such as verifying availability of funds, encumbering purchase orders, matching invoices with purchase orders, assigning Wisconsin Elementary and Secondary Schools Accounting System (WESSAS) account numbers to items being paid, preparing checks for payment, and entering payments into the accounting system.

D. Performing functions within the accounts receivable area, including preparing receipts for deposit to the proper bank account, assigning WESSAS account numbers to revenues, and entering the receipts into the district accounting systems.

E. Posting all journal entry transactions not associated with checks or deposits into the district accounting system.

F. Preparing specifications for large purchases for the purpose of obtaining bids/quotations and compiling a comparative list for analytical purposes.

G. Reconciling bank statements for district accounts.

H. Assisting in the preparation and coordination of the district’s annual budget.

I. Preparing DPI reports, including the fall Budget Report and Annual Report.

J. Accounting for and preparing claims for any Federal programs of the district.

K. Preparing non-resident tuition billings.

II. Job DescriptionA. A general statement explaining the “Function” of the

position is included.

B. The “Relationships” of the position are listed, in other words, various positions with whom the person interacts.

C. A detailed listing of the “Responsibilities” of the position which would include any duties which have been assigned to the position on a recurring basis, whether on a daily, weekly, monthly or annual basis.

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D. The “Qualifications” necessary for the responsibilities of the position must be shown, but they cannot be used specifically to screen out applicants with disabilities.

1. Minimum knowledge, skills or abilities necessary for the position.

2. Minimum training and work experience necessary for the position.

III. Bargaining UnitA. It is agreed that both sides will work together in

resolving any differences over the interpretation of the agreement.

B. It is agreed that both sides will meet to discuss any problems that were not anticipated at the time negotiations were held.

C. Prior to opening talks, district negotiators will develop a bargaining plan in anticipation of the bargaining unit’s demands based on the most recent agreements between internal and external comparables, unsatisfied demands from previous negotiations, known goals the union is trying to achieve, and the extent to which the union may be willing to make concessions.

D. Supporting data for any bargaining proposals will be assembled well in advance of negotiations to maintain a more orderly, factual and positive basis with a greater likelihood of achieving desired goals.

E. The district will carefully avoid disclosing the relative importance attached to each proposal so as not to be forced to pay a higher price than is necessary to achieve proposals that are of the greatest importance.

F. District negotiators will review and diagnose the mistakes and weaknesses of any agreement soon after it has been signed to assure that the same mistakes do not reoccur.

G. If a deadlock in bargaining occurs in which the two sides are unable to resolve their differences, the case will be submitted to mediation/arbitration at the state level.

H. Once an agreement has been reached, it must be reduced to writing and signed by representatives of both sides.


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IV. Compensation Policies and ObjectivesA. Establishing Policies and Parameters

1. It has been determined if the rate of pay within the organization will generally be above, below, or at the prevailing community rate.

2. Labor markets have been selected for comparison purposes in establishing a salary schedule.

3. A format to conduct a survey of comparable labor markets has been developed.

4. The extent to which individual bargaining should permit deviations from the established rates and pay structure has been resolved.

5. The intervals at which pay raises are to be granted has been established.

6. A probationary performance period is in place for all newly hired or rehired employees.

7. If an office employee is granted a part-time contract, then is scheduled to work additional hours each day on a sustained and consistent basis, an expanded contract can be provided to that employee.

B. Objectives of the Compensation Program

1. Helps attract and retain the type of competent personnel needed to operate the district.

2. Plays a positive role in motivating employees to perform to the best of their abilities.

3. Has employee acceptance.

4. Provides employees with opportunity to achieve reasonable aspirations within a framework of impartiality and equity.

5. Provides employees with an incentive to improve their skills and abilities.

6. Helps control and manage personnel costs.

V. Salary StructureA. A determination has been made of the method of job

placement that will be used.

B. The competitiveness of the proposed Salary Structure has been determined.

C. Initial placement on the salary schedule has been determined using a uniform tool mutually agreed upon by the district and office personnel.


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D. If the “Step” system is chosen, a plan has been agreed to for placement of personnel whose salary rate is either below or above established steps.

E. A system has been developed so a person would have the opportunity to appeal the placement of a position on the salary schedule by presenting justification for a higher classification.

F. A procedure has been agreed upon to allow for advancement in job classification category due to a change in duties or reclassification of position.

G. A provision has been included to grant additional compensation to a secretary who has been called upon to do the work of another secretary in a higher classification for an extended period.

H. The pay differential, if any, between new and more senior employees has been determined.

I. A determination has been made whether advancement on the salary schedule will be based upon seniority, relative worth, performance evaluation/merit, or a combination of those factors.

J. It is agreed upon that if an employee’s performance is deemed below satisfactory standards, increases for that year may be withheld.

K. The method of compensation for overtime work has been determined.

L. A pay rate has been determined for non-contracted, part-time or substitute office personnel.

VI. Handling Conflicts Between Individuals or GroupsA. All parties involved in the conflict will be called

together to discuss the situation in the presence of an impartial third party witness such as a Human Resources administrator.

B. The disorder within the office being caused by the conflict will be explained to both sides.

C. The effect of the conflict on the district as a whole will be discussed with both parties.

D. The supervisor’s intention of attempting to help them settle their differences will be expressed.

E. The supervisor will explain how much both parties mean to the district.

F. Both sides will be allowed to have their say.


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G. If it is impossible for a peaceful agreement to be worked out, suggest they seek ways to compromise.

H. Commitments will be sought on how they intend to handle the same situation if it recurs in the future.

I. The meeting will be concluded on as friendly a basis as possible.

J. If it becomes apparent that one person or side is primarily at fault, that person will be talked to later in private to discuss the fault and a promise or commitment to change will be requested.

VII. Situations Requiring Disciplinary ActionA. An employee that causes a problem in the office

through an objectionable act or attitude will be given an initial warning for that occurrence.

B. If the supervisor is not present at the time of the infraction, a thorough study will be conducted to gather all facts pertaining to the incident in question.

C. Written documentation will be prepared stating the name of the employee being disciplined along with the nature of the infraction, the time and date it occurred, and any possible witnesses present at the time of the occurrence.

D. Continued violations of established rules or procedures will result in a suspension, with the reason for the suspension carefully documented.

E. A determination has been made of how many and what length suspensions will be allowed before discharge proceedings are initiated.

F. When a severe disciplinary procedure is considered, the infraction will be reviewed by more than one management person in order to reduce the chance of a superficial or biased decision and to limit the possibility of being accused of discrimination.

G. A policy of consistency has been established so that if one person is suspended for a rules violation, any other person violating the same rule at a later date will also be suspended.

VIII.Grievance ProceduresA. The grievant must meet with the supervising

administrator before an actual grievance is filed.

B. The grievance must be filed within a specified period of time after the occurrence giving rise to the grievance.


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C. If there is a recognized bargaining unit representing the office staff, a representative of the bargaining unit can be requested to participate if the grievant wishes.

D. If the problem is not resolved to the satisfaction of the grievant within a specified period of time after the supervising administrator’s response, the grievance shall be put in writing with copies being forwarded to the immediate supervising administrator and to the superintendent or his designee.

E. There is a specified period of time within which both sides involved in the grievance must present their positions to the superintendent or his designee.

F. If the superintendent/designee’s reply does not satisfy the grievant, there is a specified period of time for the grievant to submit the matter in writing to the Board of Education.

G. There is a specified period of time in which the grievant may notify the superintendent/designee in writing of the intent to process and submit the grievance to arbitration.

H. There is a specified period of time in which the superintendent/designee and the grievant’s representative shall attempt to mutually select an arbitrator.

I. If agreement on the selection of an arbitrator cannot be reached, the request for arbitration shall be forwarded to the Wisconsin Employment Relations Commission for a list of arbitrators. The parties shall alternately strike names until a sole arbitrator remains.

J. The arbitrator’s role in reaching agreement between the two parties has been clearly defined.

K. The method of covering the expenses of arbitration has been determined.

L. It is agreed that the grievant may request and be granted the assistance of other qualified co-workers in the solution of the problem.

M. Proper procedures have been developed if the grievance affects more than one secretary.

N. Specific forms have been developed for use in filing a grievance.

O. Guidelines have been developed for the disposition of the grievance, if any, if the specified time limits are not met.

P. A policy has been established on whether the grievance can be adjusted in any way during the process.


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IX. Discharging an EmployeeA. Proof must be available that the person was given prior

warning that continued failure to correct the situation would result in discharge.

B. No firing procedure can be instituted without careful documentation of the infraction(s) with which the employee is charged, the date(s) and time(s) it occurred, and names of witnesses, if any.

C. Actual discharge proceedings must be handled legally to avoid the chance of conflict with the union.

1. The verbal discharge will take place in the presence of the immediate supervisor and an impartial third party witness, such as a Human Resources administrator.

2. Written notification of the discharge, with an explanation of the reason(s) leading to the discharge will be provided to the employee.

D. Once a decision has been reached to discharge an employee who has been given prior warnings and/or has exhausted all grievance procedures, the decision to discharge the employee will be final.

X. SeniorityA. Seniority will be determined by computing the

accumulated total number of hours of consecutive contracted employment within the district.

B. The initial date of the most recent period of uninterrupted employment will determine seniority when two or more persons have the same number of accumulated hours of service.

C. Seniority shall be terminated if an employee is discharged, quits, retires, or fails to report for work at the termination of a leave of absence.

D. A determination has been made whether it is necessary to maintain separate seniority lists for those people working ten or twelve months and for those working full-time or part-time.

E. A decision has been made on whether employees will be allowed to transfer their accumulated hours of seniority with them to a new position.


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XI. TransfersA. Necessity for Making Transfer

Transfers should not be made unless they are necessary because some loss of efficiency is likely to occur while the employee adjusts to the new position. Following are factors that should be taken into consideration when transfers are contemplated:

1. There is truly a greater need for the employee’s services in another area of the district.

2. The employee can be placed in a position which he/she would prefer and in which he/she would most likely perform more effectively.

3. The employee would feel more challenged in a different position.

4. The employee would be enabled to join a work group in which he/she could work more cooperatively.

5. The organizational structure is being changed, which affects the total number of district jobs.

B. Determination of Involuntary Transfers

1. Transfers will be based on seniority.

2. Previous district experience will be taken into consideration when transfers are being made.

3. Attitude and qualifications will be taken into consideration when transfers are being made.

4. A contingency plan has been agreed to in the event the transferred employee is unable to handle the new position’s responsibilities.

5. The district determines beforehand that the new staffing requirements are necessary to insure the continuity of district services.

6. If a position exists through attrition or the expansion of services, opportunities for transfer will be available to qualified employed personnel before implementing the recall of employees on lay-off.

7. A determination has been made for placement of an employee on the salary schedule who is being involuntarily transferred to another position which pay rate is lower than that of the former position.

8. Involuntary transfers shall not be made for disciplinary purposes.


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9. An annual cut-off date shall be established for notification of involuntary transfers, unless unforeseen circumstances leading to the necessity for a transfer occur after the cut-off date.

XII. PromotionsA. The organization can utilize more effectively any skills

and abilities an individual has been able to develop while employed by the district.

B. The employee merits a promotion based on ability and record of performance.

C. Advancement due to person’s seniority.

XIII.LayoffsA. Secretaries with the least seniority will be laid off first.

B. Both preliminary and final notification of layoff dates have been established.

C. A layoff can occur if it can be proven that the quality of work in a specific position can be improved by a layoff.

D. A determination has been made relative to the length of time a laid-off employee is subject to recall.

E. An employee that has been recalled for a position other than the one formerly held by that employee will be given a specified time in which to prove competence in the position.

F. Notice of recall for any employee who has been laid off will be sent by certified mail to the last known address.

G. A specified time period has been allowed for response to the notice of recall, and failure to respond within that time-frame will be considered sufficient reason to eliminate that employee’s name from the laid-off list.


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REFERENCES

Personnel Management: The Utilization of Human Resources. H.J. Chruden, A.W. Sherman, Jr., 1980.

Supervisor’s Standard Reference Handbook. W. H. Weiss, 1980.

Classified and Non-Professional Compensation and Related Benefits Salary Guide-Secretarial. School District of Elmbrook, Brookfield, WI, 1989.

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CHAPTER 10

CASH MANAGEMENT AND INVESTMENTS

INTRODUCTION

The goal of financial management in any school system is to make the most productive use of financial resources in the operations of the school district. In Wisconsin, the primary responsibil-ity for achieving this goal falls on the school business administrator as allowed by state statute.

It should be the goal of the school business administrator to have temporary surplus funds gener-ating additional revenue at the maximum rate of return available right up to the moment they are needed for disbursement. This requires a well-planned program of cash management and invest-ment consistent with sound business practice.

To predict with reasonable accuracy the timing and amounts of cash receipts, cash disbursements, transfers, purchase of investments and sale of investments, the school business administrator should develop and maintain a cash flow projection schedule. In whatever form it takes - a simple handwritten record, electronic worksheet, or a sophisticated computer program - it is an indis-pensable tool of financial management. Schedule A, which follows, illustrates a cash flow schedule. Revenues should be separated into easily identifiable categories; for example, Local Taxes, State Aids, Federal Aids and Other. A determination must be made as to when various rev-enues are expected by these designated sources. Once a budget is established, this known pattern can be applied to the total revenue and scheduled by month. The local municipality will normally make the first installment of property tax revenue around January 15 of each year and the school business administrator will need to establish when “other” revenue is to be expected. Schedule C is simply a summary of the detailed cash flow.

Wisconsin State Statutes 120.16, Duties of School District Treasurer and 66.04(2) Investments, define the parameters for appropriate handling of receipts, investments and disbursements. Basically, timely deposit into authorized financial institutions is required. Investments may include: (1) time deposits, (2) bonds or securities insured or guaranteed as to principal and interest by the federal government, (3) bonds or securities of any municipality or school district of the State of Wisconsin, or (4) commercial paper rated Aa1 or AA. For a more detailed review, reference the State Statutes 34.05, 66.04, 66.042 and 120.16. School districts have a variety of options available for fixed-term investments. Certificates of deposit, treasury bills and other short-term obligations of the United States and municipal bonds and other obligations of the State of Wisconsin and its political subdivisions are all permitted investments.

Repurchase agreements are instruments used by some school districts to invest funds for very short terms, sometimes just overnight or for a weekend. Because the statutes make no specific ref-erence to them, questions are frequently raised as to whether they are lawful investments. Each school business administrator who plans to use this type of investment should first consult with the district's bond counsel.

In addition to fixed-term investments, there are excellent opportunities for generating interest income by depositing cash in savings accounts, NOW accounts, money market accounts, sweep

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accounts, and interest-bearing checking accounts. Another excellent cash management alternative is participation in one of the professionally managed money market funds created specifically for school districts in Wisconsin such as the Wisconsin School District Liquid Asset Fund (WSD-LAF) or the State of Wisconsin Local Government Pooled Investment Fund (LGPIF). These funds offer a desirable combination of checking account liquidity, high yield, fixed-term investment ser-vices, convenience and safety.

Board policy will establish the investment parameters and must follow state statutes. Investments procedure is set by the business office to cover daily transactions and maintain approved invest-ment contacts and transaction execution. Investment income is very important and transactions should be conducted within the policy and procedure established by the district. Investment is an important part of cash management and can be conducted more profitably if there is good cash flow information. You can plan for investments if a consistent pattern of receipts and expenditures is identified and used for future estimates of available cash balances. Prompt deposits of receipts enhance cash balances available for investments.

A primary consideration in any program of cash management and investment must be the safe-guarding of public funds from potential loss. School funds should be treated with the greatest of care. A school business administrator should never sacrifice safety to earn a higher return. Adequate protection f school deposits by requiring depositories to furnish proper bond or collat-eral in lieu of bond is appropriate. Collateral security may be furnished by specific collateral or by pooled collateral. Deposits insured by the Federal Deposit Insurance Corporation or other federal insuring agencies do not require additional bond or collateral, except for amounts that exceed FDIC maximums.

The investment and cash management program of a school district should never be static. The school business administrator must be responsible to changes in statutes and regulations, conscious of an ever-changing financial marketplace and open to new ideas.

Following Schedule A is a self-evaluation guide and checklist, which should be very useful to the busy school administrator in developing a cash flow projection and determining next year’s short-term borrowing needs. This checklist can be used as an aid in administering an effective Cash Management and Investments Program. The guide and checklist is intended to identify and main-tain the strengths of the district’s program and possibly be helpful in developing a realistic plan for its improvements. The business administrator should, however, gain additional knowledge on district investing through seminars as offered by WASBO and financial institutions.

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Schedule ATypical Medium Sized School District - State of Wisconsin

Cumulative Cash Flow Deficit Projection General Fund

Beginning Cash Balance

Total Cash Disbursements &

Other

Total Cash Receipts

Cumulative Surplus Or Deficit At End

Of Month

JUL $ 4,629,446 $ 256,135 0 $ 4,373,311

4,373,311 380,514 0 3,992,797

3,992,797 605,865 $ 32,746 3,419,678

3,419,677 0 0 3,419,678

AUG 3,419,677 256,135 0 3,163,543

3,163,543 364,659 0 2,798,884

2,798,884 629,848 5,084,596 7,253,632

7,253,632 0 0 7,253,632

7,253,6321 935,062 0 6,318,570

SEP 6,318,570 1,376,395 0 4,942,175

4,942,175 567,778 2,014,804 6,389,201

6,389,201 964,171 0 5,425,030

5,425,030 4,300,000 0 1,125,030

OCT 1,125,030 0 0 1,125,030

1,125,030 1,836,183 0 (711,153)

(711,153) 544,071 109,152 (1,146,072)

(1,146,072) 964,171 0 (2,110,243)

NOV (2,110,243) 0 0 (2,110,243)

(2,110,243) 1,423,959 0 (3,534,202)

(3,534,202) 544,071 98,237 (3,980,036)

(3,980,036) 964,171 288,748 (4,655,459)

DEC (4,655,459) 964,171 3,537,604 (2,082,026)

(2,082,026) 459,788 0 (2,541,814)

(2,541,814) 1,531,949 54,576 (4,019,187)

(4,019,187) 0 0 (4,019,187)

JAN (4,019,187) 995,574 0 (5,014,761)

(5,014,761) 354,090 0 (5,368,851)

(5,368,851) 1,508,242 3,365,395 (3,511,698)

(3,511,698) 0 481,250 (3,030,448)

(3,030,448) 964,171 0 (3,994,619)

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FEB (3,994,619) 380,514 323,248 (4,051,885)

(4,051,885) 544,071 8,398,699 3,802,743

3,802,743 964,171 0 2,838,572

2,838,572 964,171 0 1,874,401

MAR 1,874,401 412,224 0 1,462,177

1,462,177 1,531,949 76,407 6,635

6,635 0 0 6,635

6,635 964,717 3,537,604 2,580,068

APR 2,580,068 1,302,406 0 1,277,662

1,277,662 544,071 2,122,474 2,856,065

2,856,065 964,171 0 1,891,894

1,891,894 0 0 1,891,894

MAY 1,891,894 1,392,250 0 499,644

499,644 544,071 87,322 42,895

42,895 964,171 0 (921,276)

(921,276) 0 0 (921,276)

JUN (921,2760 3,796,315 0 (4,717,591)

(4,717,591) 422,794 0 (5,140,385)

(5,140,385) 1,848,956 1,733,753 (5,255,588)

(5,255,588) 0 5,369,370 113,782

113,782 0 0 113,782

TOTAL $ 41,231,649 $ 36,715,985

Cumulative Cash Flow Deficit $ 5,368,851

Safe Harbor Amount ($ 5,368,850 ÷ 90 = $5,965,390) $ 5,965,390

Rounded off for Short Term Borrowing Purposes $ 5,950,000

Opening Cash Balance (7/1) $ 4,629,446

Plus Estimated Fiscal Year Cash Receipts 36,715,985

Total Cash Available During Fiscal Year $ 41,345,431

Less Estimated Cash Disbursements in Fiscal Year 41,231,649

Est. Cash Bal. 6/30 (Assuming no borrowing in fiscal year) $ 113,782

Schedule ATypical Medium Sized School District - State of Wisconsin

Cumulative Cash Flow Deficit Projection General Fund

Beginning Cash Balance

Total Cash Disbursements &

Other

Total Cash Receipts

Cumulative Surplus Or Deficit At End

Of Month

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SELF-EVALUATION GUIDE AND CHECKLIST FOR SETTING UP AN EFFECTIVE CASH MANAGEMENT

AND INVESTMENT PROGRAM

I. STATE STATUTES AND BOARD POLICY

Purpose: To provide a guide for investments of public funds with primary importance on safety of principal and availability of funds when required.

II. RESOLUTIONS

Purpose: To clearly grant authority for conducting financial transactions.


A. The school board, by state statute, written policy or guideline has provided for a school district program of investment and cash management, which is consistent with sound business practice. (Wisconsin State Statutes 34.01, 34.05, 34.06, 34.09, 34.105, 34.11, 66.04, 66.042 and 120.16)

B. Types of investments are clearly delineated as to authorized investments. (Wisconsin State Statutes 66.04[2]).

C. Safekeeping of investments is prudent and conforms to established guidelines


A. The school board has authorized the treasurer, business administrator, or other specific individuals to transfer school funds between accounts by means of telephone, verbal order or written order. (Wisconsin State Statutes 66.042[1][2][3][4][6][7]).

B. The school board has authorized the treasurer, business administrator or other specified individuals to purchase and sell investments. (Wisconsin State Statutes 66.04[2] and 66.04[2m]).

C. Depositories are named annually. (Wisconsin State Statutes 34.05[1]).

D. Funds transfer authority is granted under a system of checks and balances.

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III. BANK DEPOSITORIES

Purpose: To receive deposit of district funds and facilitate conducting daily transactions.


A. Bank depository services are procured through formal bid procedures or an active negotiations process in order to minimize bank service costs and maximize investment opportunities.

B. The school board has officially designated a proper depository for each deposit account and savings account used for school funds, including student activity funds. (Wisconsin State Statutes 34.05[1][2][3][4]).

C. Financial strength of the investment or banking institutions is reviewed regularly.

D. The school district performs, or contracts with others to perform, a thorough analysis of each financial institution and savings and loan institution before purchasing an investment from that institution, even though the investment may be fully insured by FDIC or FSLIC or fully secured by pledged collateral.

E. For each depository securing school district deposits with specific collateral, the district has on file a current written depositor/depository/custodian agreement which states the rights and obligations of each of the three parties and identifies the specific securities, the combined market value of which is not less than 120 percent of the highest daily balance in funds secured.

F. For all district deposits secured by pooled collateral, the district has on file a written statement from the depository stating that adequate pooled collateral is pledged naming the custodian of the pledged securities.

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IV. INVESTMENTS

Purpose: Cash balances not immediately required are kept invested to maximize revenue. (Wisconsin State Statutes 66.04[2] and 6.04[2m]).


A. A cash flow projection schedule is maintained, analyzed and frequently updated for the purpose of planning investments and transferring funds in and out of interest-bearing deposit accounts.

B. Credit quality of each investment is reviewed prior to making a transaction.

C. The school district secures quotes from approved financial institutions before purchasing investments in order to obtain the best possible yield.

D. Marketability (liquidity) of an investment is reviewed when uncertainty exists in the duration of the investment.

E. Total exposure of district funds with a single investment credit should be analyzed and compared to a standard of concentration.

F. Transactions are conducted through banks, brokers or dealers which have been reviewed and approved in terms of integrity and reputation as well as for investment products.

G. Each transaction is recorded and income checked with written confirmation received at time of purchase.

H. The school district purchases federally-insured certificates of deposit in amounts exceeding the insured maximum for one institution only when the excess amounts is fully secured by collateral.

I. The school district takes actual possession of securities purchased or has a safekeeping receipt in its possession as proof of ownership.

J. When approved collateral security is used to secure certificates of deposit which are not federally-insured or which exceed the insured maximum, the school district takes possession of the collateral or has it deposited with a separate bank or trust company custodian under terms of a written agreement signed by the school district, the issuing financial institution and the custodian.

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V. CASH MANAGEMENT

Purpose: To provide an accurate record of all receipts and disbursements and to plan the temporary investment of available cash balances.


A. A regular schedule of receipts and expenditures is maintained to anticipate required balances and payments.

B. Available balances are kept invested until required.

C. Receipts are deposited as soon as possible.

D. Invoices are paid as required to meet cash discounts or under the normal bill payment schedule of the district.

E. The school district uses a money market account, NOW account, savings account, interest-bearing checking account, or one of the liquid asset money market funds established for exclusive use of school districts in Wisconsin.

F. Checks, wire transfers and other cash disbursements are released as close as possible to due dates in order to obtain maximum use of district cash for investment purposes.

G. Certificates of deposit or other investments are scheduled to mature on the dates the funds are actually needed to cover expenditures rather than at the end of 30, 60 or 90 days.

H. Early checks are issued only when the school district gains a discount or avoids a penalty by early payment.

I. The district maintains a sufficient balance in a checking account or other liquid asset account to cover a certain level of emergency expenditures.

J. When qualified, the district takes advantage of tax and/or revenue anticipation borrowing.

K. The school district subscribes to financial publications and/or electronic mail services which provide frequent updates on interest rates and other investment data useful in planning and adjusting investment strategies.

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VI. TRAINING ORIENTATION

Purpose: To periodically update skills and review the importance of cash management and investment as it pertains to earning investment revenues for the district.


A. Business administrator reviews cash management skills as required for daily operations or investments.

B. Business office staff is trained in cash management skills and investment procedures.

C. Reports are made to the school board and the administration reflecting changes in cash flow which affect investment income.

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REFERENCES



“State & Local Government Investment Series,” Published by Sheshunoff Information Services, Inc., 505 Barton Springs Road, Austin, TX 78704

“Budgetary Forecasting in Local Government,” Howard A. Frank, Published by Quorum Books, Westport, CT, 1993.

“Finance and Investment Handbook, 3rd edition,” John Downes and Jordan Elliot Goodman, Published by Barron's Educational Services, Inc., 1990.

“The Money Market,” Marcia Stigum, Published by Richard D. Irwin, Inc., 1990.

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CHAPTER 11

TRANSPORTATION

INTRODUCTION

An important auxiliary service provided by most districts is pupil transportation. Not only does the school district transport its own students to and from school, but since the passage of Wiscon-sin State Statutes 121.51, 121.54 and 121.55, private school students are transported within the district or within five miles of the district's boundaries. Transportation of special education stu-dents has become more complex as a result of P.L. 94-142 and Wisconsin State Statute 121.54 Subsection 3.

Today most pupil transportation systems provide more than just transporting children to and from school. The pupil transportation service also generally provides transportation for moving particu-lar children to and from special schools and programs. Additionally, school or contracted vehicles are used to transport children to extra-curricular activities, field trips, athletic events and practices, and other, after or during-school activities.

The guiding principle with respect to pupil transportation should be that a district provide safe, efficient, cost-effective transportation services.

Transportation systems vary greatly in size of fleet and the use of local school district resources. Some districts own their own vehicles and run their own transportation systems, while others contract with independent carriers to provide transportation for their students. However, all systems perform the same functions and should be structured to assure safe, efficient transportation service.

Safety and efficiency are the results of management’s ability to identify the required functional areas and address them with a competent staff and reasonable resources to assure that children, the staff, district, and community resources are protected. Unfortunately problems connected with these functional areas often go undetected until a loss occurs and the costs are unacceptable.

When the business is that of providing a service for impulsive, active community youth, the acceptable range of error must be taken to an absolute minimum. Transportation is also a business that must operate by acceptable business procedures.

The following survey items are certainly not a complete list of program profile issues, however, they have been selected to emphasize the specialized nature of the service that is to be provided and the modified business practices that are required to assure the safety of those being served.

State of Wisconsin Statutes regarding transportation are also an important source. The school dis-trict’s Director of Transportation should become knowledgeable in applying the state statutes listed below to the day-to-day operation of the transportation program.

Wisconsin Statutes, Chapter 110, Motor Vehicles,

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Wisconsin Statutes, Chapter 121, School Finance, Subchapter IV, Transportation,

Wisconsin Statutes, Chapter 340, Vehicles - General Provisions,

Wisconsin Statutes, Chapter 341, Registration of Vehicles,

Wisconsin Statues, Chapter 343, Operators’ Licenses,

Wisconsin Statutes, Chapter 345, Vehicles - Civil and Criminal Liability,

Wisconsin Statutes, Chapter 346, Rules of the Road,

Wisconsin Statues, Chapter 347, Equipment of Vehicles,

Department of Transportation Rules, Chapter 110, School Bus Operator License.

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I. CONTRACTING WITH INDEPENDENT CARRIERS FOR PUPIL TRANSPORTATION

A. Evaluation criteria for this section are contained in the following checklist.

CONTRACTING WITH INDEPENDENT CARRIERS FOR PUPIL TRANSPORTATION CHECKLIST


A. All pupils transported to and from school at district expense are transported by bonded carriers.

B. Carriers have provided proof of adequate liability and property damage insurance coverage.

C. Copies of these proofs are kept on file in the School District office.

D. All contracted vehicles meet all requirements of the State Department of Public Instruction and the State Motor Vehicle Department.

E. Evidence has been provided by the carrier that all contracted vehicles are subject to a high standard of preventive maintenance.

F. Contracts for transportation services have been approved by the Board of Education and are on file.

G. All routes have been established by the bus carrier and approved by the administration.

H. Contracts are revised as necessary to reflect changes in routes, mileage, or other factors.

I. Contracts for transportation services are reviewed at least annually.

J. The contractor hires and trains employees in accordance with state laws and regulations and provides evidence of same upon request of the school district.

K. The contractor hires only those school bus operators who meet the requirements as set forth in Wisconsin Statute 343.12.

L. The contractor implements the discipline policies as established by the Board of Education.

M. The contractor assists school district personnel in establishing schedules.

N. The contractor supplies information for state reporting forms.

O. The data supplied by contractors is reviewed by school district personnel.

P. Records are kept by the contractor for all gasoline or other supplies.

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II. ADMINISTRATION


ADMINISTRATION CHECKLISTComplete In Progress N/A

A. Policy

1. The Board of Education has adopted written policies and rules specifying:

a) Pupil walking distance to school and stops.

b) Vehicle use for field trips, community activities, “non-public” service, and private party service requests.

c) Pupil supervision requirements of staff at school loading areas and bus stops.

d) Information process for notifying parents and pupils of rider rules, program objectives, schedules, and personnel communication methods.

e) The approved methods of pupil traffic safety and transportation education.

f) Passengers are only to be picked up or discharged at school management designated stops unless guardian requests for alternative services are approved.

g) The acceptable class of vehicles to be used for transporting pupils.

h) Review procedures for students who qualify for special education transportation.

B. Operations:

1. Staff job descriptions have been prepared and timely qualification/certification status reports are maintained for:

a) The Director of Transportation

b) Operations supervisor(s)

c) Dispatcher(s)

d) Driver trainer(s)

e) Secretary(ies)

f) Fleet maintenance supervisor(s)

g) Head maintenance technician(s)

h) Maintenance technician(s) (Mechanics)

i) Maintenance helper(s)

j) Driver(s) and substitute driver(s)

k) Driver(s) of special education pupils

l) Attendant(s)/aide(s)

m) Substitute(s)

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2. Driver education programs are in place and include:

a) Bus driver procedural “risk” management for:

(1) Railroad crossings

(2) Bus stops

(3) Behavior disruptions

(4) School loading areas

(5) Disabled vehicle

(6) Fire control incidents

(7) Pupil illness

(8) Passenger evacuation procedures

(9) Bloodborne pathogens

b) Defensive driving procedures.

c) Vehicle inspection and mechanical system performance monitoring.

d) Bleeding, shock, breathing, CPR, communicable disease, and choking treatment/control methods.

e) Law and procedural liability control.

f) Behavior management and methods.

g) Pupil rider count instruction.

h) Child development and behavioral expectations.

i) A 40 hour (minimum) “behind the wheel” individual teaching experience.

j) Health and care assurance of the special education pupils.

3. All prospective transportation employees are interviewed and records are reviewed by department management.

4. All staff procedural performance and assignment performance are observed and documented no less than once per year.

5. An annual plan for staff entry-level education, continuing education, and retraining programs are documented and the instructional staff is identified.

6. Department purchasing practices conform with state and district requirements, are documented, and are designed to assure rapid, efficient arrival of parts and services and competitive price minimums with equal vendor consideration.

7. Department staff teams design and document rationale of all equipment and parts specifications and assure, through documentation, their role as design participants.


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8. Department management maintains a liaison relationship with:

a) State law enforcement representatives.

b) Local law enforcement representatives.

c) State Department of Public Instruction representatives.

d) Local road authority representatives.

e) Community emergency planning unit representatives.

f) District administrative council.

9. Staff personal accident reporting system is in place, quarterly summary reports are prepared, and the fire and injury control facilities and procedural plans are reviewed each year for:

a) Vehicle service areas.

b) Fueling areas.

c) Vehicle storage areas.

10. Legal, regulatory, procedural, and service specification data are maintained and made available to all staff members.

11. Signed and dated staff acceptance of all procedural guides and test scores reflecting the level of understanding are documented and summarized in the director’s office.

12. Documented proof of all contractor and contracted service agent compliance with all laws, regulations, and acceptable product standards of safety are maintained in the manager’s office.

13. Bus stops are annually reviewed and office documentation is maintained on sight distance, traffic volume and speed, pupil waiting area, and pedestrian path acceptability.

14. Pupil traffic safety risk avoidance objectives and bus rider safety education protective procedures are specifically identified for all age/grade level pupils and instructional programs are being conducted.

15. The director is willing to factually confront problems with staff, assist staff in planning problem resolution, and enthusiastically recognizes staff accomplishments.

16. School passenger loading areas are free of automobile and pedestrian traffic conflicts.

17. Parents receive notice of pupil(s) by stop locations and bus arrival time prior to the start of school.

C. Planning

1. Departmental project and long-range planning teams are established to document goals, objectives, and accomplishments which are prepared as an annual report.

2. Community road network maps displaying bus stops, student numbers, and highlighted routes are prepared for all grade levels and pupils assigned to special programs.


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3. Annual reports of school start times and simulated transportation system efficiency options are documented.

4. Quarterly vehicle utilization reports identifying actual hourly activity and percentage of daily hour rating, passengers served, and accumulated mileage are prepared for all fleet vehicles.

5. Vehicle replacement plans reflecting performance level, maintenance mileage costs, and projected service demand levels are prepared by November 1 of each year.

6. Departmental operations and staff needs assessment are prepared for a semiannual review and resource assignment adjustments.

7. A specific chart of staff communication for parents, drivers, and administration is established and a log of contacts and resolutions is maintained and reviewed periodically.

8. Energy management and hazardous waste management program plans and semiannual documented performance assessments are maintained in the director’s office.

9. Fleet vehicle accident summary data is prepared from the National Uniform Accident Report records and analyzed quarterly.

10. Department Management prepares an annual budget, reviews monthly and annual “to-date” expenditures for departmental activity control.

11. Special education pupil needs are evaluated by a consultant team for personal restraint system and equipment design.


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III. OPERATIONS AND OFFICE MANAGEMENT


OPERATIONS AND OFFICE MANAGEMENT CHECKLIST


A. Personnel

1. Specific staff are trained and assigned the following personnel duties:

a) Dispatching, monitoring, and modifying driver and vehicle assignments.

b) Pupil discipline.

c) Financial record management and business office contact for expenditure posting, program cost report preparation, payroll generation, inventory maintenance, and budget review.

d) Bus stop selection and review.

e) Staff driving procedure monitoring and instruction.

f) Communicating with parents/students.

g) Communicating with driver, mechanic, and office staff regarding procedure manual production and updating.

h) Communicating with administrative/instructional staff.

i) Personnel seniority and assignment selection listings.

j) Personnel timekeeping and payroll.

2. Drivers are assigned a team management responsibility to monitor route, traffic, and student risk conditions and are rewarded for performance standard improvements.

3. Drivers and management serve as accident and fleet review teams.

4. Employees are responsible for continuous monitoring and compliance for:

a) License renewals.

b) Performance.

c) Physicals/TB tests.

d) Education (entry).

e) Education (continuing).

f) Driving record.

5. Functional assignment preparation for additional “back-up” office staff is in place.

6. Office contingency plans and staff assignments are prepared for:

a) Lost child.

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b) Vehicle accidents.

c) Child injury.

d) Medically fragile children conditionally advanced.

e) Disabled vehicle.

f) Extra trip pupil injuries.

g) Early school closing.

h) Weather condition alerts.

i) Tornado sighting.

j) Pupil fights (in route).

k) Bus fire.

l) Fleet vandalism.

m) Late return to storage.

n) Bomb threat.

o) Weapons/beepers.

B. Routing

1. Specific staff are trained and assigned the following duties.

a) Maintain street and address ranges for all stops.

b) Map data preparation and activity reporting.

c) Maintain routing and census records and pupil seating assurance.

d) Extra trip driver assignments.

e) Preparation of 95% accurate route design, produce bus or driver daily listings of buildings served, pupils served by stops, mileage, time, total students per run.

f) Preparation of district building attendance area maps for all building administration.

g) Map displays of pupil grade levels and

h) program assigned pupils.

i) Preparation of building lists of pupil

j) passengers by bus number stop assignment, sequenced stop locations and pupil

k) demographics.

l) Route adjustment plan for overloading, excessive riding time, or late school arrivals.

m) Route design and route modification

n) contingency plan for special education


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o) students services.

p) Maintain route design for kindergarten

q) students.

r) Prepare audits periodically for passenger rider count reflecting 98% accuracy with route passenger assignment records.

s) Monitor special education pupil rider items to identify ride times in excess of 60 minutes.

t) Keep maps of all district roads, bridges,

u) construction limitations, and route

v) modification plans current and available.

w) Document and review pupil stop/route assignments to eliminate road “crossover” actions of pupils and bus “turn around” all at high risk roadway locations.


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IV. FLEET MAINTENANCE AND OPERATIONS


FLEET MAINTENANCE AND OPERATIONS CHECKLISTComplete In Progress N/A

A. Inventory Control

1. Vehicle inventory records are current and include:

a) Chassis/year manufactured.

b) Body/capacity.

c) Engine size.

d) Fuel type.

e) Purchase price.

f) Method of financing.

g) Annual amortization.

h) Engine ID number.

i) Vehicle ID number.

j) Transmission ID number.

k) License plate number.

l) Department assignment.

m) Current odometer.

n) Starting odometer.

o) Sale price.

2. Vehicle parts are stored in a secure location and monthly “sample” physical inventory/verification is conducted and documented.

3. Work orders identifying required parts, mechanic, estimated time, repair classification, and combined costs are required for procurement of parts.

4. Parts inventory, purchasing procedures, and cost reports reveal:

a) Manufacturer.

b) Parts available.

c) Current costs.

d) Parts supplier.

e) Purchase price.

f) Parts system classification and ID number.

g) Replacement level.

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h) Performance trends of components.

5. Fuel delivery and physical quantity monitoring record keeping system is in place to reveal fuel supplies at a 98% accuracy level.

6. Contracted maintenance costs reports are reviewed quarterly for budget allocations.

7. A hazardous waste management program is posted and written records are summarized to verify procedural compliance.

8. A vehicle maintenance history report of cost/10,000 miles is maintained revealing fleet average costs and vehicle comparisons for all fleet vehicles.

B. Maintenance Procedures and Scheduling:

1. Driver pre-trip and post-trip inspection reports are used as a means for producing work orders.

2. Disabled vehicle incident repair quarterly reporting:

a) Insurance/accident costs.

b) Warranty repair costs.

c) Operational failure.

d) Roadway/Weather.

e) Driver error.

f) Costs to recover disabled vehicle.

3. Weekly vehicle maintenance scheduling based on time, distance, inspections, or incidents are prepared.

4. Weekly reports of vehicle fuel, oil and coolant use per mile reveal a fleet priority listing of vehicle performance problems.

5. Mileage and time preventive maintenance schedules are in place and posted as a vehicle service schedule for all fleet vehicles.

6. Quarterly vehicle maintenance exception reports reveal unusual vehicle performance ratings and “flagged” costs.

7. Fuel conservation procedures are described and staff procedural compliance is documented.

8. Daily accumulated vehicle route mileage summary reports are produced on a monthly basis.

9. Disabled vehicle recovery procedures are specified in writing and personnel are trained and certified to provide service.

10. Annual Wisconsin State Patrol vehicle inspections of all pupil transportation fleet vehicles are summarized and reviewed for maintenance personnel performance review.

11. Vehicle repair history records are readily available to all maintenance technicians for any vehicle being serviced.


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12. Vehicle interiors and exteriors are clean and well maintained.

13. Customized preventative maintenance schedules are designed for all special education buses, equipment, and restraint systems.

C. Personnel and Work Safety

1. A maintenance technician and support staff continuing education program is cooperatively constructed with staff and documented competency attainment is recorded.

2. Climatically controlled, well-lighted service areas are provided for all work stations.

3. Adequate service staff are employed to perform maintenance functions on a timely basis for all fleet vehicles.

4. Fire suppression equipment and procedures are prominently displayed and readily available within 50 feet of garage service areas and fueling location.

5. Service improvement staff suggestion program is in place as a part of the planning effort.

6. Garage service equipment and environmental control equipment are safety inspected quarterly with condition and repairs documented for transportation management.


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REFERENCES

Principles of School Business Management, R. Craig Wood, ed., ASBO International, Reston, VA, 1986.

Issues in Pupil Transportation, Ernest Farmer, ASBO International, Reston, Virginia, 1987.


Self-Evaluation Manual for School Business Management, Pennsylvania ASBO, 1987.

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CHAPTER 12

NEGOTIATIONS

INTRODUCTION

In 1959 Wisconsin became the first state to adopt legislation regarding public sector employee relations. Since that time, many states have borrowed extensively from the Wisconsin law in creat-ing their own employee relations legislation, and most state bargaining laws have at least some features which have been borrowed from Wisconsin. Wisconsin §111.70, the bargaining statute, has changed considerably since 1959. The original statute called for a meet-and-confer arrange-ment, while today’s statute provides for final and binding arbitration or qualified economic offer for impasse resolution. A major impetus for the binding arbitration provision was the highly pub-licized strike by teachers in Hortonville, Wisconsin. Strikes were, for most intents and purposes, made illegal as a result of the legislation, with binding arbitration being the implied trade-off for labor peace. There have, in fact, been a number of small, illegal strikes since the new law was put into effect, but they have been very minor in nature. The statute has been changed a number of times over the years, and undoubtedly will continue to be changed as a result of pressure from unions, management and the public at large.

It is perhaps fair to say that prior to the enactment of Wis. §111.70, and particularly of the imple-mentation of binding arbitration, employers had most of the bargaining chips in their hands. Sup-ply and demand and withholding of services were essentially the only tools that school employees had. Over most of those years, there was a very plentiful supply of teachers and other school workers. Strikes, if not illegal, were viewed by both employees and the public at large as unac-ceptable. Boards of education also had the power to discharge almost at will, which further negated strikes. While the original public sector employee relations laws legitimized negotiations, the power in bargaining still remained with the employer. Once binding interest (non-grievance) arbitration was made part of the law, the balance of power quickly shifted to the employees. It has often been said, fairly or not, that unions now bargain at the table for all they can get, and then go to arbitration to get more.

Today, salaries and accompanying fringe benefits comprise from 82 percent to 87 percent of a school district’s total budget. Perhaps even more important, negotiated contract language has in many instances moved management rights from boards of education and administration to staff and unions. At the same time some of those changes have enhanced both working conditions and the educational climate, others have had delitescent or negative effects upon the educational sys-tem and its students.

Approaches in bargaining appear to have moved from a more confrontational approach to one of cooperation and understandings. In some instances this has had most positive results; in others it has led to false security and greater problems. More changes will surely be seen in the future.

I. THE PSYCHOLOGY OF NEGOTATIONS

People in conflict can often negotiate their differences. Typically, each side begins by ask-ing for more than it expects to get, and through concession by both sides, a mutually

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acceptable agreement is ultimately reached. While most things can be negotiated, there are some deeply cherished beliefs and values that simply are not negotiable. Likewise, not all conflicts or disagreement should be settled through negotiation.

Those who negotiate face the two extremes of competition and cooperation. Those tempted to be overly tough and demanding can well drive the other “side” to leave the table. By being too cooperative, it is well possible to give up more than necessary or truly desirable. In the same vein, a negotiator faces the conflicting dangers of being too honest and open versus exhibiting total misrepresentation. The former stance can lead to exploita-tion while the latter could bring such mistrust that the other party may be unwilling to negotiate at all. One more concern is the question of a short-term gain versus a gain in the long run. Short-term personal gain often comes at the sacrifice of mutual gain over the long haul. Long term mutual gain and satisfaction generally outweigh short-term gains where one party feels short-changed or deceived.

Where fears of giving up too much lock parties to the point that there is no room for any type of conciliation, third parties are often able to facilitate concession-making without loss of face. If a third party asks you to make a concession and you do, you have conceded not to your opponent but to a third party, who asked for your assistance. If the resultant agreement works well, the party who has acceded can take credit for the initial movement, and if it does not work well, the third party can be saddled with the fault.

Getting to know the person on the other side of the negotiations will enable you to realize the difference between what is said and what is meant. Interpersonal sensitivity may help increase negotiating effectiveness, but only up to a point. Neither excessive reaction to nor ignoring everything another person says will lead to optimal agreements. It is undoubtedly better to put forth initially extreme demands, thereby providing your op-ponent with the information necessary to move toward a mutually advantageous solution.

Psychological research indicates that negotiators are more conciliatory when faced with an adversary who is consistently cooperative rather than competitive. One team should be made to feel that the other team is willing to cooperate because of their own willingness to cooperate. An adversary whose behavior is contingent upon your own is letting you know that you have the skill and competence necessary to shape his or her behavior. Conces-sions are more likely to come from those who are made to feel competent. Moreover, if you can let the other person feel they are regarded as a worthy negotiator, bigger conces-sions may be gained on those issues that really count.

Those who will not move “until the other guy does” may push the other side into taking exactly the same stance. If both sides retain that stance, impasse will be imminent. It is also true that tactics and gambits, which may work when the intensity of conflict is low, may have just the opposite effect when the intensity of conflict is high. Negotiators stuck in hostility may need to shake things loose by experimenting with different arrangements, anything that may help break the negative momentum the disputants have generated.

Negotiations remains a technique that promises less than one might like but a great deal more than typically can be obtained without it.

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II. PROVISIONS OF WISCONSIN STATE STATUTE 111.70

Negotiations for public school employees are governed by provisions of Wisconsin §111.70. The original statute has been revised a number of times, most recently by 1991’s Act 39. At the time of this writing, additional changes have been proposed in bills before the legislature. It is thus essential to keep current with the statute. Knowing the basics of this statute is essential for anyone involved in any way with public sector bargaining. Those most intimately involved in collective bargaining should have an even greater knowledge of the specifics of this statute. This writing speaks to a number of the basic pro-visions of the statute, with the caution that for your own usage, you should refer directly to the statute for specifics and should utilize legal counsel for any necessary interpretations.

Collective bargaining as defined by the statute means the “mutual obligation of a munic-ipal employer. . .and the representatives of its employees, to meet and confer at rea-sonable times, in good faith, with the intention of reaching an agreement, or to resolve questions arising under such an agreement, with respect to wages, hours and conditions of employment.” It is also important to not that, “The duty to bargain. . .does not com-pel either party to agree to a proposal or require the making of a concession.” Fur-ther, “The employer shall not be required to bargain on subjects reserved to management and direction of the governmental unit except insofar as the manner of exercise of such functions affects the wages, hours and conditions of employment of the employees.”

Labor organizations tend to take the broadest view possible of this last statement, while management usually takes a much, much narrower view.

Although the statute provides that the municipal employer must negotiate with its employ-ees, it excludes independent contractors, supervisors, or confidential, managerial or execu-tive employees. This is very important in determining unit clarification. For example, “Supervisor” under the statute means. . .any individual who has authority, in the interest of the municipal employer, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward or discipline other employees, or to adjust their grievances or effectively to recommend such action, if. . .such authority is not of a merely routine or clerical nature, but requires the use of independent judgment. The WERC rules on questions of unit clari-fication.

Strikes, for all practical purposes, are prohibited by the statue, although they can be legal in very limited situations to which both parties have basic advance knowledge and agree-ment. The specific definition of “Strike” under the statute is important to highlight. “Strike” includes any strike or other concerted stoppage of work by municipal employees, and any concerted slowdown or other concerted interruption of operations or services by municipal employees, or any concerted refusal to work or perform their usual duties as municipal employees, for the purpose of enforcing demands upon a municipal employer.

The section regarding rights of employees under the statute relates primarily to those of organizing, or refraining therefrom, for the purpose of bargaining, but also imposes the statutory right to fair share agreements. There is no specific section under the statute regarding rights of employers. Management often takes the stance that they thus have the right to do anything not specifically denied them under the statute while unions often

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maintain that management only has those rights specifically given to them by other por-tions of this or other statutes.

Prohibited practices are stipulated in the statute for both municipal employers and munici-pal employees. It is important to note that these apply “individually or in concern with oth-ers.” The prohibitions relate primarily to interfering with guaranteed rights of organizations and bargaining, or to live up to negotiated and arbitrated agreements.

The Wisconsin Employment Relations Commission is given specific powers under 111.70. Among these are the prevention of prohibited practices, resolving questions of failure to bargain, providing for specific methods for peaceful settlement of disputes, pro-viding for selection of representative and determination of appropriate units for collective bargaining.

Certain requirements are noted by the statute regarding the initiation of bargaining.

1. Notice of the commencement of contract negotiations must be given to the com-mission in writing by the party requesting negotiations on a form provided by the commission.

2. Meetings held between the parties for the purpose of presenting initial bargaining proposals, along with supporting rational, shall be open to the public. Each party is required by statute to present its initial bargaining proposals to the other party in writing.

3. By agreement of the parties, meetings after the initial exchange of proposals may be closed to the public.

The commission is also empowered by the statute to given methods for peaceful settle-ment of disputes.

Mediation under the statute is a process encouraging voluntary settlement by the parties, through the use of a neutral third party, “but no mediator shall have the power of compul-sion.”

Fact-finding includes an investigation to see if an impasse exists followed by formal hear-ings and investigation into the facts, which in turn leads to written findings of fact and rec-ommendations for solution of the dispute. Within 30 days of the receipt of the fact-finder’s recommendations, each of the parties must advise each other and the commission of its acceptance or rejection of the recommendations. The recommendations are not binding upon either party and are often used more as a pressure instrument with the public and oth-ers. Fact-finding has been used very sparingly by the parties in recent years.

Arbitration may be agreed to by the parties for any dispute pertaining to the meaning or application of the terms of a written collective bargaining agreement. Such grievance arbi-tration is separate from interest arbitration which involves disputes over bargainable items to be included in a new collective bargaining agreement.

Voluntary impasse procedures under the statute also provide that the employer and labor organization may, as a permissive subject of bargaining, agree in writing to a dispute

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settlement procedure including authorization for a strike. Any such agreement must be filed by the parties with the commission.

Interest arbitration is perhaps the most controversial provision of 111.70. In brief, the provisions for interest arbitration under the statute state that:

1. Mediation and all other settlement procedures established by the parties must first have been exhausted;

2. Either party or the parties jointly may then petition the commission for arbitration;

3. The petitioning party must submit in writing to the commission and the other party its final offer “containing its latest proposals on all issues in dispute.” If it is not a joint petition, the non-filing party must submit its latest proposals within 14 calen-dar days of receipt of the filing;

4. The commission makes an investigation, upon receipt of a petition for arbitration, to determine whether an impasse does exist and arbitration should be commenced. If the commission feels full efforts have not been made to resolve the impasse, it may order such compliance before ordering arbitration;

5. Prior to the close of the investigation, each party submits in writing “its single final offer containing its final proposals on all issues in dispute.” Such final offers may include only mandatory subjects of bargaining, except that a permissive subject of bargaining may be included by a party if the other party does not object and shall then be treated as a mandatory subject”;

6. Fifteen days after a mediator has declared that an impasse exists, the employer may provide a qualified economic offer to its professional bargaining units. Where a valid QEO is given, the employer can avoid settling through arbitration. (See Section XII on QEO.)

7. At the same time, or earlier, the parties submit to the commission of a written stip-ulation regarding all matters which are agreed upon for inclusion in the new bar-gaining agreement.

8. Arbitration is ordered after receipt of the investigator’s report and a determination that arbitration is called for;

9. If the parties do not mutually agree to a specific individual as arbitrator:

a. A list of 7 arbitrators is submitted to the parties. They then take turns striking names until one name remains with that individual being designated as arbitra-tor; OR

b. The parties may, instead of a single arbitrator, agree to a tripartite arbitration panel consisting of one member selected by each of the parties and a neutral party designated by the commission as chairperson; OR

c. At the request of the parties, a random selection process may be used for selecting the arbitrator. Such a procedure has the commission submit a list of 7 names to the parties for consideration. Each party deletes one name, and the commission randomly selects one name from the remaining five names to appoint as arbitrator

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10. The commission formally appoints the chosen arbitrator and sends them the final offers of the parties which are considered as public documents. Unless the parties agree otherwise, every person whose name is submitted by the commission for appointment as an arbitrator and every individual who is designated as an arbitra-tion panel chairperson “shall be a resident of this state at the time of designation”;

11. Within 10 days of appointment, the arbitrator sets a date and place for the conduct-ing of the arbitration hearing;

12. Upon petition of 5 citizens of the jurisdiction served by the employer, filed within 10 days of the arbitrator’s appointment, the arbitrator shall hold a public hearing within the jurisdiction for the parties to explain their positions and for members of the public to have input;

13. The final offers given to the arbitrator by the commission serve as the basis for continued negotiations, if any , between the parties. At any time prior to the arbi-tration hearing either party, with the consent of the other party, may modify its final offer in writing;

14. Prior to the arbitration hearing, either party may withdraw its final offer and imme-diately provide written notice thereof to the other party, the arbitrator, and the com-mission. If both parties withdraw their final offers, the union, after giving 10 days written notice, may strike. Unless both parties withdraw their offers, the final offer of neither party is deemed withdrawn, and the arbitrator proceeds to resolve the dispute by final and binding arbitration.

15. The arbitrator continues to attempt to get the parties to resolve their differences and may, at this discretion, conduct a public meeting for both sides to present their positions and rationale.

16. Either party may petition the commission questioning whether any proposal made by either party is a mandatory, permissive or prohibited subject of bargaining. If such a declaratory ruling is sought, the arbitration award is delayed until the com-mission renders a decision in the matter. Mandatory subjects include those such as base salary upon which the employer must agree to bargain. Permissive topics are those upon which neither party is required to bargain but upon which they agree to negotiate. Prohibited subjects are those expressly excluded from bargaining such as setting the district’s tax levy limit.

17. The arbitrator adopts, without further modification, the final offer of one of the parties on all disputed issues submitted except those items the commission deter-mines not to be mandatory subjects of bargaining.

18. The arbitrator’s decision is final and binding on both parties and shall be incorpo-rated into a written collective bargaining agreement.

19. Costs of the arbitration are equally divided between the parties.

20. Arbitration hearings cannot be interrupted or terminated because of prohibited practice complaints.

The statute indicates ten factors to which “the arbitrator shall give weight” in making any decision under the arbitration procedures. Comparability has been the primary (sometimes sole) factor used by most arbitrators, but the entire list of factors is important to consider

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and emphasize in making presentations to arbitrators. Recent changes to arbitration laws, however, have required the arbitrator to give much greater weight to employers ability to pay (#3 below) than to comparables. The listed factors are:

1. The lawful authority of the municipal employer. (This is not usually contested.)

2. Stipulations of the parties.

3. The interests and welfare of the public and the financial ability of the unit of gov-ernment to meet the costs of any proposed settlement. (A factor more recently used by districts.)

4. Comparison of wages, hours and conditions of employment of the municipal employees involved in the arbitration proceeding with the wages, hours and condi-tions of employment of other employees performing similar services. (To date the factor most considered.)

5. Comparison of the wages, hours and conditions of employment of the municipal employees involved in the arbitration proceedings with the wages, hours and con-ditions of employment of other employees generally in public employment in the same community and in comparable communities.

6. Comparison of the wages, hours and conditions of employment of the municipal employees involved in the arbitration proceedings with the wages, hours and con-ditions of employment of other employees in private employment in the same com-munity and in comparable communities.

7. The average consumer prices for goods and services commonly known as the cost-of-living.

8. The overall compensation presently received by the municipal employees, includ-ing direct wage compensation, vacation, holidays and excused time, insurance and pensions, medical and hospitalization benefits, the continuity and stability of employment, and all other benefits received.

9. Changes in any of the foregoing circumstances during the pendency of the arbitra-tion proceedings.

10. Such other factors, not confined to the foregoing, which are normally or tradition-ally taken into consideration in the determination of wages, hours and conditions of employment through voluntary collective bargaining, mediation, fact-finding arbitration or otherwise between the parties, in the public service or in private employment.

Although factor “2” indicates that the arbitrator is to give weight to what has already been agreed to for the new agreement (the stipulations), the arbitration is a question beyond those stipulations. In effect, this may be considered double dipping. The union has already gained through the stipulations, has been given a final offer on the item(s) being arbitrated, will receive no less than that, and may receive much more.

Except for the initial collective bargaining agreement between the parties, and except as the parties otherwise agree, collective bargaining agreements covering municipal employ-ees under 111.70 shall be for a term of 2 years. No collective bargaining agreement shall be for a term exceeding 3 years. Thus, if the parties cannot agree to some other time frame,

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all bargained agreements are for two years. Professional bargaining unit parties can collec-tively agree to agreements of 2 years while other bargaining units can agree to 1, 2, or 3 year contracts, but not to any term in excess of 3 years duration.

A caution is again made to the reader that the foregoing is but a brief highlighting of what are considered by this writer to be major provisions of Wis. §111.70. There are many other details and concepts the negotiator must consider in specific cases. Legal counsel is rec-ommended for any significant questions or contract changes that may be raised.

III. PREPARING FOR NEGOTIATIONS

To be an effective negotiator and to be effective in negotiations, preparation must be an ongoing process. Those who wait until just before reopening of a contract to begin their preparations will not be able to do a creditable job at the table. Unfortunately, those who serve as negotiators for school districts usually have negotiations as just part of their duties. Unions, on the other hand, generally have full-time individuals who specialize in bargaining with much greater resources at their disposal than do most school districts. WEAC, for example, has an excellent computer network for bargaining data, a legal staff with many specialists in labor law, Uniserv directors well schooled in bargaining, and pro-fessional training for members of their local bargaining committees. Bargaining in the public sector is a complex responsibility that takes much time, patience, preparation and understanding. Each bargain has its own peculiarities, and each negotiator has his/her own personality and approach to fit into the process. Thus, while there is no one approach that will work for every individual in every situation, there are basic preparation steps that can be taken. A “bargain” as used in this chapter is intended to mean the total bargaining pro-cess between a municipal employer and the representatives of its employees (union) for one contract term.

IV. RECORD KEEPING

It is wise if not essential to keep a separate and complete file of applicable bargaining items for reference. The following is but a partial listing of items to be considered for such a filed. Even more important than having these files is assuring that they are updated and kept.

Complete records of past bargains. This is most important not only for its historical sig-nificance but for future necessary reference. It should include minutes and notes of all meetings, ground rules, original and amended proposals of both parties, and any handouts there may have been.

Carry-over items.

Almost every bargain results in certain items being dropped by one or both of the parties as a compromise or to speed the negotiations process. In the case of union requests, you can often expect them to show up again the next year. By the same token, you may wish to reintroduce items that the employer dropped in a former bargain.

Problems with existing language and/or provisions.

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There are a number of sub-categories that may fit your needs here:

1. Language which may have seemed innocent or logical at the time it was adopted may be causing you and/or the union problems;

2. Language in the master agreement may be unclear even though the parties thought it was clear at the time they agreed to it;

3. Language is outdated and no longer applicable;

4. Language or terms have been superseded by statute, rulings, etc., and thus need to be deleted or replaced.

Language clause finder. Sample language dealing with public sector master agreements can serve both as a thesaurus and to obtain near model language for clauses already in your agreement and for clauses which might be added.

New provisions that have been requested by the board of education oradministration.

Grievances. Whether upheld or not, grievances give indications of requests that will no doubt come up at the table in the future. Reviewing past grievances can alert you to and prepare you for these possibilities.

Declaratory rulings. WERC rulings, not just for your district but for the state as a whole, will alert you to what are permissive, mandatory and prohibited topics of bargaining. These are important to review in analyzing union requests.

Salary schedule scatter-grams from your district for each contract year. Charts such as this enable you to more quickly cost proposals, give you historic reference, and indicate trends you may need to answer union requests or upon which to base your own requests for needed changes.

Costs and fluctuations of costs for your district’s salary schedule and benefits. Ris-ing health insurance costs are today the most obvious of these. Such tings as increased usage of sick leave, increased overtime for staff, general absenteeism, movement on the salary schedule as a result of additional training, unemployment and/or workers' compen-sation claims can all affect future directions.

Comparison of salaries, benefits and language provisions between bargaining units in your own district. While the nature of their work may be different, and salaries may justifiably differ from group to group, different bargaining units tend to compare with one another as much as possible to justify expanded pay and benefit requests.

Composition of the bargaining unit(s). Age, sex, marital status, number of children and such similar factors can be scrutinized both to anticipate future requests at the table and the projected costs of those requests.

Comparable benefits and their costs in other districts. These are often available through surveys available to you from local consortiums, WASB, WASDS, AWSA, or even the union. If they are not readily available, consider a survey of your own.

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Settlements in other districts. What has been settled in other districts, especially your immediate comparable districts, will assuredly come up in your district. That is true whether it is a union gain, which the union will demand, or something you feel is advanta-geous to your district which you want on your list of requests. This can also be valuable as regards total settlement costs and comparative pay schedules. You should also be particu-larly aware of any language changes which might have an affect on your future negotia-tions.

Clippings. Clippings from newspapers, periodicals and similar sources which might affect bargaining are easier to file at the time you become aware of them than trying to search them out when memory feels they might be of use.

V. METHODOLOGY IN BARGAINING

There is no one best way for the parties to bargain. The old method of confrontational bar-gaining has undoubtedly been by-passed by better approaches, yet it is impossible to state that one method of bargaining would be the best for all districts or even for different bar-gaining units in the same district. What has become more and more clear is that the best results for all concerned seem to be reached when there is mutual respect and good, clear communications between the parties.

Approaches that may be utilized would include the confrontational approach, concept bar-gaining, problem solving, consensus bargaining, mediation and other forms of assisted negotiation, and conflict resolution. What is most important is that you and your board of education first agree on the approach you feel is best for you, and you then agree with the other party (union) as to the approach that will be used.

VI. CHOOSING YOUR SPOKESPERSON

Dependent upon the methodology decided upon for your bargaining, a chief spokesperson must be chosen for the district. Even in the case of the purest consensus bargaining approach, it is generally necessary to have one bargaining specialist to rely upon. Often the next question is whether to have someone from within the district (an insider) or some-one not a part of the district (contracted) as spokesperson/negotiator. The AASA drew up the following “scoreboard” to compare the two choices:

Inside Negotiator

Advantages Disadvantages

Remains in the district after ratification to administer the contract.

Insulated from trends.

Knows the history of bargaining in the district. If the superintendent or a principal is used, hostilities from the table could hinder the person’s effectiveness following negotiations.

Is likely to have more credibility with the other side. May not have the training and background to match that of the union negotiator.

Offers contract-to-contract continuity.

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VII. CHOOSING YOUR NEGOTIATIONS COMMITTEE

Your negotiations committee must be large enough to provide the needed input and yet not be so large that it could hinder the bargaining process. Those who will be responsible in the future for administering the negotiated agreement should all have input. They do not, however, have to specifically be on the negotiations committee, or, they at least do not have to sit at the bargaining table. They can, instead, be advisory or resource personnel. Whether they are a direct part of the committee or not, the following areas of administra-tion should be a part of the input for teacher negotiations: Board of education,, superinten-dent, chief business official, personnel director, the various levels of school administration (high school, middle school, elementary school, exceptional education, resource person-nel). Similar relationships should be utilized for bargaining with other non-teacher units.

There are different schools of thought on whether board of education members and the superintendent should be a part of the bargaining committee. While some feel their pres-ence enhances the bargaining, others feel they are better held in a neutral role as far as bar-gaining itself is concerned; although all recognize that their input is needed. One caution is necessary. It has been held by a Wisconsin court that having a majority of the total board of education present when a tentative agreement is made constituted acceptance of that agreement even though that tentative agreement was later rejected by the total board of education. If a majority of the board members are present at one or all negotiation ses-sions, a written agreement with the union should be made stipulating that any agreements made are tentative and contingent upon final ratification by the board of education. The inclusion of either board of education members or the superintendent depends on each dis-trict’s own uniqueness and needs.

Legal counsel is essential to any bargaining committee. A district may have its own legal staff with labor expertise; however, most districts cannot afford that luxury. Other districts use an outside individual with a labor law or industrial relations background as chief nego-tiator. Those who do not have these legal sources should obtain legal counsel on at least a retainer basis to answer questions that will arise. Such a person need not, however, be a formal part of the negotiation committee or sit at the table.

Contracted Negotiator

Advantages Disadvantages

Hard feelings leave with the outsider. When the outsider leaves, someone must administer the contract. That person may not be as familiar with the lan-guage or intent of contract.

Costs less than a full-time staff person. The administration may have to spend a good deal of time helping the outsider.

With professionals on both sides of the table, less personal animosity generally results.

The public may criticize the district for paying a high fee to an outsider.

Can give an objective appraisal of management’s negotiations objectives.

The outsider may seek “spectacular results” to enhance ability to be hired elsewhere.

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VIII. TRAINING IN NEGOTIATIONS

Training in negotiations is available for both those with very little and those with a great deal of bargaining expertise. Training for negotiators should be on going. It is also best for individuals to get training through a variety of mediums. Both formal and informal train-ing is available in a number of formats. Some formats provide self-instruction while others have a more direct instructional format. Examples of several of these approaches are given below. Often only one example will be given, not as specific endorsement of that source, but merely to provide a starting reference.

Nation-wide professional training sessions. An excellent example of this would be “The Program on Negotiation for Senior Executives:” sponsored by the Harvard Law School in conjunction with Tufts University and the Massachusetts Institute of Technology. Although the cost for this particular program is far from minimal, the training should prove invaluable. There are many similar opportunities throughout the nation.

Conferences, conventions and seminars. A distinction is made here differentiating between the professional training session and more informal meetings. Conferences are generally less concentrated than formal training sessions and often contain a variety of topics in addition to negotiations. They also have the advantage of being more localized and giving more emphasis to one or more narrow topics dealing with the entire negotia-tions and labor relations realm. The annual WASB/WASDA/WASBO joint convention held in Milwaukee, Wisconsin would be an example of one of these, while any negotia-tions-related conference sponsored by an individual association would be another exam-ple.

Consultant services. You can contract with such groups or individuals to put on special training sessions in your own district or area. An example of this would be Robert Chad-wick’s Consensus Associates of Terrebonne, Oregon. The example given concentrates on the consensus approach to bargaining. Others concentrate on other specific bargaining approaches or are generalists in the field of labor relations and bargaining.

National and state professional associations. Some of these associations deal specifi-cally with negotiations while others are broader in nature but provide concerted efforts in the area of negotiations. By the same token, some are solely educationally related while others cover a wider membership. The Wisconsin Manufacturers & Commerce Associa-tion is an example of a broad statewide association which deals in part with questions of bargaining and related costs. The Wisconsin School Attorney’s Association is an example of an educationally related organization that specializes in negotiations and labor related items. The North American Association of Educational Negotiators (formerly the National Association of Educational Negotiators) is one example of a nationwide (plus Canada) association concentrating on educational negotiations beyond the individual state level. All of these organizations have newsletters, publications, conferences and training ses-sions for negotiations.

Local/regional consortiums. At times local school districts will meet on either a regular or need basis to discus mutual problems or to have more specific learning sessions. These are of particular value since one in your area would have more direct comparable values for you.

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Media. Through reading, listening and watching, training through use of a variety of sources can provide self-education/training. Examples include books, periodicals, spe-cially prepared audio and visual tapes, publications of various governmental and associa-tions groups, professional journals, and various packaged materials. A highly recommended publication/service is the Bureau of National Affairs (BNA) negotiations service. That provides everything from a weekly publication highlighting current school negotiations news to file folders which are regularly updated on bargaining laws of all the sates, a clause finder, CPI information, and various statistical data.

Each member of your bargaining team should have some degree of training. The entire administrative staff and board of education members need at least basic knowledge of negotiations and bargaining since they are the ones responsible for the day-to-day admin-istration of the negotiated agreements.

IX. PREPARING FOR THE OPENING SESSION

Assemble information about the members of the union negotiation team. Intentionally or not, people in bargaining tend to be guided by their own needs and desires. If the majority of a bargaining team of teachers represent the secondary level, for example, you may well find concerns of the elementary level teachers will not be as important at the table. If most of them are single, they will not be as likely to worry about concerns that would be more applicable to those with family concerns. More senior members can be expected to be more concerned with retirement benefits, while younger and less senior members would be more likely to concentrate on base salary increases. Knowledge of these demographics can well influence how strongly the committee as a whole will feel about specific issues and how likely they are to hold or drop on those issues.

Assemble demographic information about the employee group. (See the reference under Record Keeping.)

Assemble internal and external financial information. This was also referenced earlier under various parts of the Record Keeping. Collectively this should now be formatted so you can have knowledge of and be ready to present facts on issues such as monies cur-rently paid, monies available, comparable, total compensation, and ancillary benefit costs.

Anticipate union demands. Past grievances, carry-over items from the last bargain, items in union publications, resolutions passed in union conventions, state-level union lists of wants, demands in surrounding districts, and unresolved requests from the last bargain all give hints of what may be in the unions list of demands (requests). These may in part dic-tate items you may wish to include in your own initial proposals.

Obtain parameters from the board of education.

1. Suggest to the board and obtain their approval for:

a. The methodology to be used in bargaining;

b. The individual to serve as spokesperson;

c. Composition of the management negotiations team.

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2. Endeavor to have the board approve parameters relating to both language and dollars.

3. Establish procedures for communicating with the board.

4. Request any specific items/areas the board wishes brought to the negotiations table.

Assemble management’s bargaining team.

1. If possible, include both new and experienced members.

2. Assure that team members have some basic training in negotiations.

3. Review with the team the methodology to be used in bargaining.

4. Discuss each member’s role in the bargaining process.

Develop management’s initial negotiating position/requests for changes.

1. Include board of education suggestions.

2. Solicit specific requests from all administrators. This can be done through use of a formal survey form, individual contacts, and at joint meetings with the administra-tive staff.

3. Review the last bargain for outstanding issues.

4. Check your grievance and arbitration files.

5. Consider complaints from the public.

6. Review costs.

7. Evaluate the current contract for needed changes in format and language.

8. Anticipate union requests you may wish to counter.

9. Consider needs which might be viewed as gains for the other side but which will actually be of value to the district and students.

10. Consider preliminary language which would fit each of your requests.

11. Check to see if your requests are permissive, mandatory or prohibited subjects.

12. Develop written rational for each of your requests.

13. Ascertain costs for each of the tentative proposals to assure that they stay within board approved parameters.

Prioritize management’s requests. For your purposes, which requests are essential to have, nice if you can get them, things you would like but can’t expect to get, ones you can drop.

Hold a pre-bargaining meeting with the union spokesperson and other leaders. Most of the items to be discussed can better be handled away from the bargaining table and before formal bargaining begins. Some of the following must, of necessity, be handled prior to the first formal meeting; others could be handled at the first meeting; all should be confirmed at the first formal meeting.

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1. Set a date for the initial exchange of proposals.

2. Tentatively set ground rules to include such items as:

a. Will meeting beyond the proposal exchange be open or closed;

b. Set a target date for the completion of bargaining;

c. Decide if meeting minutes should be shared or taken by each party;

d. How will press releases be handled, joint releases or at will;

e. What will be the stance of the parties on confidentiality during bargaining;

f. How will tentative agreements on each issue be handled such as initialing;

g. Starting and ending times for meetings;

h. Tentative dates for meetings;

i. Location of meetings;

j. Participants at the table - regular and resource;

k. Comparable districts to be used in bargaining;

l. How ratification will be handled.

Assure that proper forms have been filed with the WERC as required by Wis. §111.70.

Provide for public notifications of the opening of negotiations. A simple way of doing this is to make public notification of it as you would for a regular board of education meet-ing.

X. BARGAINING SESSIONS

The Opening Session

In most Wisconsin school districts, the initial bargaining session will be the only open or public session. The tone for regular bargaining sessions is often set at this meeting. It is perhaps the most opportune time for your to explain where management intends to go in this bargain, what its overall goals may be, and the meaning of and rationale for each of its proposals. The same should be obtained from the union side. This meeting should be rela-tively concise, not going into actual bargaining, but going over the proposals of both par-ties with listening and exchange of explanations. There are also ground rules and other formalities to be considered.

If future sessions will be closed, that should be announced at this time.

Those present should be introduced. This is a good ice-breaking exercise, and it also lets the media/public know who will be involved. The media should also be formally recog-nized. If questions are to be answered for the public in the future, that can be indicated at this time as well who the contact person(s) from each of the parties will be.

Written initial proposals should be distributed to all present.

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Initialing or signing of the ground rules by the spokesperson for each party can set a trend for future agreements, and also is indication to the parties that they are working together for a common cause under agreed-upon procedures.

Although many of the proposals of both parties may seem self-explanatory, it is wise to have each proposal read and explained aloud. Questions for clarity can then immediately be raised and answered. It is important to raise questions and be sure that you understand the answers. Your team members should, however, limit themselves to questions. They should not at this time challenge or debate any of the issues. One important question that should be asked is whether individual requests have been costed, and what the projected cost of each is. Should the union provide such information, it will give you a starting point for your own analysis as well as a rough estimate of total costs. Any cost estimates given to you must be checked using your own calculations.

Once all issues have been presented and questions have been asked, it is advised that the session be adjourned with notation of the next meeting time, date and location.

Initial Analysis

Your bargaining team needs an immediate analysis of not just the initial proposals of the union, but also an analysis of the meeting itself. Such analysis should continue throughout the course of the total bargain, either at the conclusion of each bargaining session or dur-ing the course of sessions by calling for a caucus.

Analyzing the meeting. Everyone is bound to recognize reactions from those on the other bargaining team. Body language, facial expressions and even the tone of statements or questions they raise can all be indicators. Someone skilled in recognizing this can make very good use of what they have seen or heard. The general tone of the meeting and of the group as a whole is also important.

Analyzing the requests. Each issue or request presented by the union must be analyzed regarding the reason it was raised, its monetary cost in both the long and short term, how it affects others, whether it is in conflict with other contractual provisions, whether it might be precedent-setting for your district and your comparables, and whether it is a mandatory, permissive or prohibited topic. Costing each request separately at this time is more impor-tant than the total package cost of the collective requests. Obviously some of the requests will be modified or dropped during the course of the bargain. Having separate costings will make it easier to determine your total cost figures at the conclusion of bargaining.

Requests from the union can now be categorized into priorities both as management views them and as your committee feels the union views them. This prioritization is much the same as was recommended in preparing management's requests.

At this time you may also wish to categorize requests from both parties. Several groupings might be drawn up such as salary, fringe benefits, hours and working conditions, union rights, educational concerns/curriculum, calendar, management rights, and general lan-guage items. If such a division is made, it would be wise to have no more than three or four classifications. Such a list can be presented at the first working session of the parties for better organization of the bargain. It is even possible for sub-committees to work on

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separate classifications with recommendations being brought back to the full bargaining teams. This can effectively cut down on the amount of work and research all bargaining team members do. It is important, however, to limit the power of such sub-committees because of both cost and crossover concerns. With many requests to be considered, one sub-committee could conceivable “give” something that would have an adverse effect on the bargain as a whole.

Follow-up Bargaining Sessions

How sessions are arranged and conducted following the opening session depends to a large degree on the methodology the parties have chosen for the bargain. There are a myr-iad of books and articles that have been written on how to bargain. These range from seat-ing arrangements and size of the table to having only one person speak for your committee versus everyone having an open voice. The best approach is simply that which works best for the parties in the bargain. There are, however, general suggestions that should be appli-cable to all bargains.

Discussion is better than angry debate. There may be times when a genuine expression of anger is healthy, but it too often leads to both parties stiffening their own positions with the result that nothing can be accomplished.

Show respect for the other party. No matter what your feelings are for the other person or their ideas, they should have equal stature in the bargain and receive that recognition.

Stand firm for that in which you believe. Do not be defensive about your position. While your issues may become modified or dropped during the course of the bargain, that should be done as a result of reason and discussion, not because of simple pressure or without good cause.

Take accurate notes and minutes. Memories may fail, and having accurate notes and minutes will become essential. There are those who advocate tape recording sessions, but that tends to stifle open, honest expression, and sometimes leads to grandstanding.

Keep the length of meetings reasonable. Individuals do not operate as effectively when they are tired. There can be a tendency to make agreements because of tiredness or frustra-tion that would not and should not normally be made.

Make specific note of tentative agreement as they are made. It is common for the spokespersons from both parties to initial written agreements immediately after they are made with each party retaining a copy. If specific contract language has not been written, it should be noted on the initialed agreement. The initialed agreement should contain suffi-cient specificity to allow accurate language to be written later without debate. Be sure that issues which are dropped are handled in the same manner.

Be cautious of permissive topics of bargaining. If you feel an issue brought to the table by your opposition is a permissive topic of bargaining, let that be known from the start, even if it is a topic you are willing to discuss. If it is an issue on which you are not willing to yield, listen to the other sides reasoning before rejecting it out of hand. If there is a question about whether the issue is permissive or not, be willing to file for a ruling by the

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WERC. Take the same stance with issues on which the union may questions your requests. Remember that a permissive topic not challenged as such prior to arbitration becomes a mandatory topic of bargaining. Remember, also, that the statute “does not compel either party to agree to a proposal or require the making of a concession.”

Make good use of the caucus. If you have questions concerning any issue that would bet-ter not be brought up before the union, call for a caucus. This will give the opportunity to discuss the matter among your own committee members before either making a decision on the issue or prematurely revealing your stance to the union. The caucus, on the other hand, should not be overused by the parties, and time limits should be mutually agreed to concerning the length of a caucus.

Don’t be afraid to put issues on hold. If discussion on a particular issue seems to be get-ting nowhere, or if you need to do further research on it, put it on hold until a more oppor-tune time.

Cost as you go. Once agreed to, agreements are nearly impossible to reverse. Know what the cost is and if you can afford it before you agree to it.

Language versus dollars. More often than not, dollars become the bottom line. Although language can at times be more costly than salary increases, most bargaining unit members are more concerned about salaries and fringes than language changes. The vast majority of impasse cases (mediation and arbitration) have monetary items as their sole or primary issues. How you approach which area to discuss and settle first is thus noteworthy. At the same time, money issues are much easier to assess and cost than are language issues.

Strive for settlement - but not at any cost. Impasse resolution is time-consuming, costly, and politically unpopular. For these reasons, as well as labor peace, you should do your best to arrive at a settlement that is good for both parties. In spite of the costs men-tioned for impasse resolution, a settlement on unacceptable terms or made solely to avoid impasse may be far more expensive in the long run. The district, as well as the union, must carefully weight both its changes in arbitration and the alternatives before taking that step.

XI. POST SETTLEMENT/IMPASSE

There are two obvious culminations to negotiations, the parties will either reach a settle-ment or come to impasse. Should the latter occur in Wisconsin public sector negotiations, impasse resolution directions are prescribed by statute. The parties may either have agreed to impasse resolution procedures themselves, or they must follow those specifically out-lined in Wis. §111.70. Settlement, on the other hand, results in non-statutory procedures.

Impasse

Impasse resolution under the statutes, as previously mentioned, can be costly in terms of time, money and politics. It also requires a higher level of negotiations expertise for pur-poses of researching, compiling, writing and presenting. Legal counsel is strongly urged for any district faced with arbitration. The statutory provisions relating to impasse resolu-tion have already been covered herein. This chapter will not delve further into that process. See section on QEO for impasse with teacher bargaining units.

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Post Settlement Procedures

Having arrived at a tentative settlement in the bargain is an accomplishment for both par-ties.

The seasoned negotiator, however, realizes that there is still much work to be done before the settlement is finally in place. They also recognize that problems may still arise that have not been anticipated, upon which the parties have different understandings, or because those not at the table were not a part of the discussions, compromises and agree-ments. A number of tasks still remain.

Assuring completeness. Lists of initial and additional requests by both management and the union should be reviewed to be certain that all topics have been addressed and that there has been agreement either to settle or to drop the issue. The initialed/signed tentative agreements are invaluable to this end.

Announcing the settlement. Settlement has impact on and interest to a wide audience. It is wise immediately after agreement has been accomplished to make note of that in public. It is not always wise, however, to reveal any of the terms of the settlement. More often than not the parties agree to indicate to the media that a tentative settlement has been reached but that details will not be forthcoming until the union membership and manage-ment have been briefed on the terms. In some instances the details are not revealed until ratification has been accomplished. The media may press for immediate details, but the reasons for delays such as those mentioned are obvious.

Writing the contract language. Specific language may already have been approved at the time of tentative agreement on a specific clause or issue. Just as often the parties will agree to an issue or request that still needs written clarification for inclusion in the final master agreement. Charts, schedules and similar presentations are also included under this step. The importance of this task cannot be overemphasized. In spite of the efforts of the parties in the bargaining sessions, clarity and total agreement may falter at this step. Those responsible for final language compilation should be both knowledgeable and experienced in this area. They must be able to accurately interpret what the parties intended and accu-rately reflect that in writing. There are times when compromise will again become neces-sary and when cool heads are needed. Completeness must once more be assured. One person with expertise from each of the two parties working together on language is per-haps an ideal arrangement. Even then, there may be a need for other advice or added expertise.

Proofing the compiled agreements. Hard as the writers may try, there may be mistakes made in putting together the written agreement. Proofing this by a number of individuals acquainted with the agreement is wise.

Reporting to the parties. Both management and union have an obligation to report the final results of their negotiations to those they represent. In doing so, they should be acting for both parties in recommending ratification by both sides. The obligation for the man-agement team should be to report not only to the board of education and superintendent, but also to the administrators of the district who will be administering the agreements. A step that has proven to have value is to develop a joint summary of the agreement which

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can be given to both management and union members. This minimizes contradictory reports. If possible, the same can be done regarding the costing of the agreement. Report-ing to the board is most often done in executive session. Reporting to the union members is most often done in a closed general meeting of the union membership.

Ratification. The date(s) for formal ratification by the parties should be indicated in advance, with the dates of ratification by each of the parties being in close proximity. The union often ratifies at the same meeting at which the agreement is presented to the mem-bership in closed session. It is common practice for the union to ratify first with the board of education ratifying very soon thereafter. Formal notice of ratification should be commu-nicated to the other party.

Reporting to the public. The timing for notification to the public becomes a matter for the parties to decide collectively. Details often do leak out earlier than the parties might desire, and that should be taken into consideration when determining the timing. The union, especially in the case of the WEAC, is noted for informing the state union office of the full details of the settlement as quickly as possible to assist other district’s unions in their bargaining efforts. A similar reporting to state associations and to comparable dis-tricts is often undertaken by management on a somewhat confidential basis.

Producing, signing and distributing the final master agreement document. Both sides are a part of the compilation of language and charts for the printed agreement. According to Wis. §111.70 “Collective bargaining includes the reduction of any agree-ment reached to a written and signed document.” At least one original copy of the total agreement signed by representatives of the parties should be retained by each of the two parties. Generally a printed copy is then given to each member of the staff affected by the agreement. The document also becomes part of public records and is available to others under the State of Wisconsin open records law.

Educating your board of education and administration. Reporting to the parties is one part of the job; educating your people to the results is another. The board and administra-tion are charged with the day-to-day administration of the agreement that has been reached. There is a real need to fully educate them as to just what the language means, what their rights and obligations are under the new agreement, and now the new agree-ments will affect the ways in which they operate. It should also be stressed that the board and administration should ask questions if there is any doubt about operating under the new agreement. Such training in a timely manner can do much to avoid problems in the future. One member of management should henceforth have the primary responsibility for master agreement language interpretation.

XII. QUALIFIED ECONOMIC OFFER (QEO)

Introduction

With the commencement of school district revenue controls established in 1993, the state legislature recognized a need to prevent large teacher compensation increases from con-suming entire district budgets. Therefore, it enacted what is known as the Qualified Eco-nomic Offer Law. This law is contained in Wisconsin Statutes §111.70.

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While the mechanics of this law are quite detailed, essentially the law prevents a teachers’ union from going to interest arbitration as long as the Board of Education offers at least a salary and benefit package increase of 3.8% over the prior year base of salary and benefits. No changes to salary schedule or benefit structure (i.e., benefits offered and Board's con-tribution) may be made by the Board in establishing a qualified economic offer.

Points of Interest - Qualified Economic Offer

A. Boards of Education must provide accurate costing data to their teacher unions 60 days prior to the expiration of the current contract.

B. The “cast-forward” method of costing is required using bargaining unit members currently employed as of the 90th day prior to the expiration of the current contract. This “cohort group” is projected through both years of the new contract regardless of retirements or resignations.

C. If the Board’s final offer meets or exceeds an increase of 3.8% of the total salary and benefit compensation package paid in the base year, the teachers' union may not successfully petition for interest arbitration on economic issues.

D. Before the Board can implement a QEO, a W.E.R.C. mediator must certify negoti-ations impasse exists.

E. As pointed out previously, the QEO law, found in Wis. Stats. 111.70, is very detailed. The business official would be well advised to become familiar with this law and QEO costing rules well prior to the commencement of bargaining with the teachers' union.

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PROFESSIONAL NEGOTIATIONS CHECKLISTComplete In Progress N/A

I. ORGANIZATION

A. The district has one individual responsible for coordinating union negotiations

B. The district has a labor attorney on staff or on retainer

C. The district has a stated methodology(ies) for bargaining

D. Negotiations teams represent all elements of management

E. A chief spokesperson is appointed by the board of education

II. RECORD KEEPINGA. Items dealing with negotiations are kept in one master file.

B. Separate files are maintained for each bargaining unit

C. Records include the following:

1. Copies of all your district’s past negotiated master agreements.

2. Copies of comparable district’s negotiated master agreements.

3. Complete records of past bargains by contract year.

4. Carry-over items from past bargains.

5. Notes on problems with existing master agreements

6. Sample language from other contracts (clause finder)

7. Suggestions for new language from management

8. Grievances

9. Declaratory rulings on permissive topics of bargaining

10. Salary schedule scatter-grams for each contract year

11. Costs and cost fluctuations for salaries and benefits

12. Comparisons with other districts on salaries/benefits/ language

13. Composition of the bargaining unit such as age, sex, marital status, and children

14. Settlement reports for other districts

15. Surveys

16. CPI and related data

17. Media articles applicable to bargaining

D. Files are updated on an ongoing basis.

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III. TRAININGA. Lead administrators receive professional negotiations train-

ing.

1. Membership is maintained in negotiation-related organizations.

2. Applicable publications are available to management’s team.

3. The board participates in regional and state WASB meetings.

4. Key administrators attend out-of-district training ses-sions.

5. Negotiation related conferences are attended by negotia-tors

B. District participation is encouraged in area negotiation groups.

C. Consultant services for in-service in negotiations are utilized

D. Bargaining team members are trained in the basics of bargaining.

E. In-service is held for all administrators on bargaining principles

IV. PREPARATION FOR BARGAININGA. Information is assembled about union bargaining team

members.

B. Demographic information is gathered about the employee group

C. Union demands are forecasted and analyzed.

D. Internal and external comparable financial information is assembled

E. Parameters are given by the board of education concerning:

1. Methodology to be used in bargaining

2. A spokesperson, where applicable, is appointed.

3. Composition of the management negotiations team is approved

4. Cost and language limitations are outlined

F. Management’s bargaining team is oriented to the upcoming bargain.

G. Management’s initial proposal is assembled.

1. Board of education provides input

2. All administrators are surveyed about upcoming negotiations

3. Outstanding issues are reviewed

4. Grievance/arbitration files are reviewed


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5. Proposal costs are analyzed

6. Format content of current contract is reviewed

7. Anticipated union requests are considered

8. Determination is made of mandatory/permissive/ prohibited nature of subjects to be bargained

9. Written rationale is developed for each proposal

10. Costs fit within board directed parameters

H. Board/Management’s requests are prioritized

I. A preliminary meeting is held with the union to:

1. Set the date, place and time for initial proposal exchange.

2. Discuss ground rules for implementation in bargaining

J. Required notification is filed with the WERC for start of negotiations

K. Public notification is given of the commencement of negotiations

V. BARGAINING SESSIONSA. The initial bargaining session is noticed and open to the

public/media

B. Notification is made regarding open or closed future sessions

C. Proposals and rationale of both parties are in writing

D. Opportunity is given for full explanation of all proposals

E. Ground rules are formally adopted.

VI. INITIAL ANALYSISA. Meetings are analyzed afterwards.

B. Requests of the union are analyzed as to:

1. Cost on both a short and long-term basis.

2. Comparison with contract provisions of comparable districts

3. The possible effect on the district and individuals

4. The real reason why the request was presented

5. Whether the request is mandatory, permissive or prohib-ited

C. Requests are prioritized

D. Requests are categorized as to financial or non-financial issues

VII.REGULAR BARGAINING SESSIONS AFTER THE INITIAL EXCHANGE OF PROPOSALSA. All sessions are conducted in a professional manner


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B. Accurate notes, minutes and records are maintained

C. Meetings are kept at a reasonable length

D. A target date is set for the conclusion of bargaining

E. Tentative agreements are approved as they occur

F. Items are costed as you proceed

G. Permissive topics of bargaining are noted and treated cautiously

H. Caucus sessions are properly utilized

I. Agreements are made with reason, not as a result of pressure

J. Language changes are given special scrutiny

K. All tentative agreements are dependent upon final ratification

VIII.POST SETTLEMENT PROCEDURESA. The parties assure that all topics have been addressed.

B. A joint announcement of tentative settlement is made

C. The parties have procedures for writing final contract lan-guage

D. A final costing of the total agreement is made

E. The total agreement is proofed by the parties prior to adop-tion

F. Detailed reports are made to the individual parties on the terms

G. The parties separately ratify the new agreement.

H. Terms of the agreement are made public

I. The new agreement is produced for distribution

J. The agreement is formally signed by representative of the parties

K. The management team and payroll staff is educated concerning the new agreement


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REFERENCES

“Effective Bargaining Handbook: Strategies and Tactics for the Next Contract,” published by Wisconsin Association of School Boards, 2000, 122 West Washington Avenue, Suite 400, Madison, WI 53703.

“Getting to Yes,” Roger Fisher and William Ury, Published by Houghton Mifflin Company, 1991.

American Arbitration Association, www.aaa.com

Wisconsin Association of School Boards, 122. Washington Ave., Suite 400, Madison, WI 53703. www.wasb.org

“The McGraw-Hill 36-Hour Negotiating Course,” Mark R. Schoenfield and Rick M. Schoenfield, Published by McGraw-Hill, Inc., 1991.

“Updated Wisconsin School Laws,” A subscription service provided by Wisconsin Associa-tion of School Boards, 2000, 122 West Washington Avenue, Suite 400, Madison, WI 53703 and the Wisconsin Attorneys Association, 2 volumes.

“Compensation Theory and Practice,” Marc Wallace and Charles Fay, Published by PWS-Kent Publishing, 1988.

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CHAPTER 13

PURCHASING AND SUPPLY MANAGEMENT

INTRODUCTION

The procurement function plays an integral part in an educational system. Books, instructional materials, supplies, and equipment as well as a variety of services are necessary to the process of educating students. The system used by a school district to make purchases affects the quantity and quality of the merchandise or services purchased and, as importantly, the timeliness with which they are received. The act of purchasing should be done within the policies and procedures set forth by the board of education in order to make use of the district’s financial resources most effectively and efficiently.

I. PURCHASING ETHICS AND POLICIES

“The purchasing function is considered one of the most touchy jobs in public service. When it is performed fairly, judiciously, and with good management techniques, few peo-ple outside the purchasing department concern themselves with it. Let any questionable practices come to light, however, and the public spotlight focuses with ruthless intensity upon the total organization. Mismanagement in purchasing can throw an entire organization into turmoil and disre-pute.” (Wood, 492)

“The reputation of the school district is reflected through the practices of the district’s pur-chasing official. A Code of Ethics should be developed to guide the acts of purchasing and the district’s method of doing business.” (Wood, 492)

Following is a suggested Code of Ethics:

1. To regard public service as a sacred trust, giving primary consideration to the inter-ests of the school district and community by which we are employed.

2. To purchase without prejudice, seeking to obtain the maximum benefit for the tax dollar.

3. To avoid unfair and sharp practices (questionable or unethical).4. To respect our obligations and to require that obligations to our school district be

respected.5. To accord vendor representatives the same courteous treatment we would like to

receive.6. To strive constantly for the improvement of our purchasing methods and of the

materials we buy.7. To counsel and assist fellow purchasing officials in the performance of their duties.8. To conduct ourselves with fairness and dignity, avoid any conflict of interest, and

to demand honesty and truth in buying and selling.9. To cooperate with all organizations and individuals engaged in enhancing the

development of the purchasing profession.

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10. To remember that we act as a representative of the school district and to govern those actions accordingly.

“School personnel authorized to make purchases for the school district as well as other staff engaged in the purchasing operation must maintain high ethical standards. A Code of Ethics combined with school regulations and adherence to various statutes will provide the groundwork for a respectable and reputable purchasing operation. A high ethical standard of conduct results in a reputation for a district and purchasing official above any suspicion of unfair dealings.” (Wood, 493)

Following are suggested policies:

1. The procurement function is one of the major business responsibilities of the board.

2. The board of education has the authority and responsibility for all purchase con-tracts of the district. The authority and responsibility can be delegated, with certain restrictions, under provisions of the state statutes and by rules and regulations of the State Department of Public Instruction.

3. The purchasing authority and responsibility should be centralized under a supervi-sor of purchasing or such other person who is officially designated by the board of education. This permits the purchasing function to be supervised by a profession-ally qualified person and permits the establishment of uniform policies for internal and/or external purchasing functions.

4. The supervisor of purchasing will ensure performance within the limitations pre-scribed by law, by legal opinions, and in accordance with board policies. This does not mean that the purchasing official must be a legal expert, nor that he/she should not rely upon his/her own judgment when questionable points arise. It is only important that the purchasing official learn the fundamentals so that he/she will recognize the need for legal guidance and obtain it when necessary.

5. Four fundamental functions of the purchasing department are:a. Buy the proper product for the purpose required.

b. Have the product available when and where needed.

c. Buy the proper quantity of the product.

d. Pay the lowest possible price, consistent with the preceding principles.

6. All approvals of purchase orders should be recorded in the minutes of the board.7. Specifications governing supplies, equipment, and services are a joint responsibil-

ity of the educational and business departments. In the procurement function, the supervisor of purchasing should do his or her utmost to ensure that the items and services specified will meet the needs of the educational program. It is the duty of the purchasing official to stress the importance of standardization where possible.

“Written policies help interpret institutional purposes and facilitate speed and accuracy in translating policy into action. They clarify the relationships of the school board, superin-tendent, and staff to and among each other in the matter of providing materials for the school program. Carefully considered and well-written policies are the basis for all board

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functions. They legalize actions and relieve employees of the responsibility of making pol-icy decisions under the pressure of time or expediency.” (Burrup and Brimley, 364)

Efficient and economic business procedures should be established in accordance with sound principles of business administration compatible with the needs of the educational program. These principles of administration should be governed by an established Code of Ethics and by General Policies of the Board. “The most effective communication devices possible must be used to make the information available to staff personnel and to vendors and interested patrons in the community.” (Burrup, 364)

The following Rules and Regulations are recommended for the procurement function:

1. The purchasing department should conduct all purchase transactions for the dis-trict.

2. The purchasing department should establish practical and efficient office proce-dures, reports, records, and systems that will allow the department to give maxi-mum effort to the acquisition of supplies, equipment and services for the educational program and assist the administration in its role of management.

3. The purchasing department should maintain a library of current trade catalogues, which should be available to all departments.

4. The purchasing department should, when warehousing responsibilities are assigned, maintain a system of warehouse inventory control to account for available equip-ment and supplies. A catalogue of current warehoused items should be maintained and distributed to all using departments.

5. The purchasing department should handle the disposal of all personal property declared surplus or obsolete by the board of education. Consideration will be given to maximize the monetary return to the district in the process.

“Legal fraud has been defined as any act, deed, or statement made by either a purchaser or vendor, before the purchase contract is formalized, that is likely to deceive the other party. A vendor is not liable for fraud if the evidence proves (1) that the vendor or the salesman made a false statement after the contract was signed, (2) that the vendor or salesman did not know that the quality of the merchandise was not as claimed in the contract, or (3) that the buyer did not rely on the vendor’s statements concerning the product. If a buyer inspects merchandise before entering into the contract, he/she, if experienced with the merchandise, is expected to practice good judge-ment in decision making. If a contract agreement is made on the basis of fraudulent acts or statements, the contract is not valid. A delay in claiming fraud or a payment made after fraud is discovered may destroy the basis for recision and damages.” (Candoli, Hack, and Stollar, 207)

The power and authority to contract is the responsibility of the board of education and may not be delegated. The mechanics of the purchasing function are usually delegated by the board of education through written board policies, with the board of education having the sole authority to contract or to expend funds except under certain very limited condi-tions.

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“Making a purchase involves a transfer of title of the merchandise from vendor to the buyer. If goods are sold and shipped F.O.B. (free on board) the vendor’s location, the pur-chaser automatically takes legal title. By doing so, he/she assumes full responsibility for accident, contingencies, damage, loss, or delay by carrier. If goods are shipped F.O.B. buyer’s location, title passes to the buyer when goods are delivered by the carrier.” (Can-doli, 204)

“Whatever purchasing authority a school district possesses is granted by the state. Pur-chasing power is not inherent but must be delegated to the local district through statutory law passed by the legislature or by rules and regulations of the State Department of Public Instruction.” (Candoli, 204)

States frequently mandate purchasing responsibility and authority, purchasing limits, pro-cedures, forms, and so forth. Many states have regulations requiring that all purchasing for accounts beyond a specified amount must be procured by sealed bids, meeting state bid-advertising and bid allocating procedures: other states require purchasing from state lists at stipulated prices.

Restrictions imposed by regulations for particular grants must be read carefully and fol-lowed closely. Many will require that you purchase from organizations that employ fair labor practices, other policies may suggest you purchase from minority owned business or service agencies and/or agencies that practice affirmative action in personnel policies.

“Effective school purchasing requires a systematic purchasing organization that is oper-ated by established procedure. Purchasing policies and procedures should provide guide-lines in the following areas: (1) purchasing structure; (2) purchasing personnel; (3) establishing specifications; (4) selecting vendors; (5) purchasing procedures; (6) receiving and inspecting supplies; and (7) storing, inventorying, and distributing supplies.” (Burrup, 364)

“Many vendors are aware of the role of the industrial purchasing agent and assume that the same relationship exists within the educational setting. Because this is not so, school administrators should develop comprehensive job descriptions for their purchasing per-sonnel, with definitive statements as to their authority and responsibility.” (Candoli, 206)

“A primary rule for purchasing personnel is to consult the school’s legal counsel on any doubtful or controversial points in the analysis of unusual or obscure legal terms in the vendor’s forms and in the phrasing of clauses and conditions that are to be incorporated into purchase agreements.” (Candoli, 206)

II. THE PURCHASING PROCESS

The purchasing process consists of more than just buying materials, supplies, and equip-ment. As a result, the purpose and basic function of the supervisor of purchasing is to obtain needed materials or services in the proper quantity and quality, to have them avail-able at the time they are needed, and to secure them at the lowest possible price from a responsible source.

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There is no single purchasing system used by all school districts because a system that works well in one district may not be effective in another district. The fundamental objec-tives for a purchasing department are:

1. To plan a program of educational materials and equipment procurement that will optimize the educational output of the system.

2. To maintain continuity of supply to support the educational program with the min-imum in inventory consistent with educational need, safety, and economic advan-tage.

3. To maintain standards of quality in relation to suitability of use.4. To acquire materials and equipment at the lowest cost consistent with quality and

service required.5. To help the educational system maintain maximum instructional efficiency at all

times.

The purchasing function of the school district, which begins with the recognition of a need and ends with paying of an invoice, must be governed by a system of procedures needed to accomplish the tasks necessary to procure the goods and services, in order to operate effi-ciently and accurately. Functions of the business office/purchasing department:

1. Time and date stamp all requisitions.2. Verify that funds are available.3. Develop standards or specifications.4. Identify the most appropriate purchasing method.5. Obtain and evaluate prices, products, services, and sources.6. Negotiate prices, terms, and conditions of delivery.7. Recommend awards.8. Issue purchase orders, contracts, and agreements.9. Follow-up on delivery.10. Investigate short and damaged shipments.11. Perform invoice/receiver matching prior to payment.12. Arrange for returns to vendors.

Multiple copies of purchase orders are necessary. The original should go to the vendor, a second copy for the bookkeeper, a third copy for the warehouse/receiving department, a fourth copy for the purchasing office, and a fifth copy to the requisitioner.

In back order situations, it is common to pay a purchase order on a “partial” for the items received at the time and pay for the remaining balance when the back order items come in.

III. PURCHASING METHODS(Centralization/Standardization)

Before engaging in the purchasing of various goods and services for the school system, the purchasing official must become familiar with the state laws, rules and regulations of the State Department of Public Instruction, and local policies and regulations governing pur-chasing in the public sector, particularly educational institutions. There are several pur-chasing methods available to school districts. A centralized system is recommended.

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Through a centralized system of purchasing, standardized lists of supplies and equipment should be developed and used. There will be exceptions when employees need special order items, and in such cases where exception to the standardized list is appropriate, pro-vided the budget dollars are available and the purchase is authorized. Benefits of standard-ization are:

1. Allows for lower costs due to ordering large quantities of one item.2. Allows for lower costs on repairs and replacements of equipment due to consolida-

tion of maintenance agreements.3. Reduces inventories, which reduces storage costs and increases the amount of

funds available for other purposes.4. Speeds the delivery of materials and equipment.5. Reduces the number of times specifications must be written.6. Reduces the work of the purchasing department and the business office.

IV. INFORMAL METHODS OF PURCHASING

Some alternative methods to the formal purchasing procedure of the requisition/purchase order system are used by school districts as a way to save time and money by reducing the number of purchase orders generated. Such methods are:

1. Blanket/Open Purchase Order -Establish one blanket or open purchase order with a vendor specifying a period of time, such as a month and the dollar amount, which is not to be exceeded. Thus, employees may purchase many small items needed on this same purchase order and need only sign a sales slip and forward it to the accounting department. This type of set up may be a problem when employees from various sites or depart-ments are purchasing on the same purchase order. The total dollar amount must be allocated into several different accounts in order to properly encumber the district’s books. In this instance, separate purchase order numbers may be assigned specific to a site and/or department.

2. Revolving Cash Fund -The revolving cash fund is an informal method of purchasing, which is one of the least expensive and most expeditious methods of acquisition. As the fund is dimin-ished by payments, signed receipts and invoice vouchers are submitted to support the expenditures in order to replace the funds. A single purchase order is then gener-ated, paying back the revolving cash account.

3. Confirming Orders -Consistent with good purchasing policies, no acquisition should occur without proper authorization from the purchasing department.a. Pre-assigned Orders: In some instances, a pre-assigned purchase order number

may be given to a district employee to acquire certain immediate-need items. The employee making the acquisition must follow-up with a completed requi-sition and receipt or an itemized invoice to initiate the processing of payment.

b. Telephone Orders: All telephone orders should be identified by a purchase order

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number. Telephone orders are an expedient method of operation, however, a disadvantage of this process is the possibility of a misunderstanding by the vendor which could cause an even greater delay had the regular purchasing process been followed. Again, follow-up by the vendor is necessary to insure proper payment.

4. Warehouse-A well-stocked warehouse with readily available standardized items will save both time and money by cutting out the purchase order/paperwork process.

V. FORMAL METHODS OF PURCHASING

1. Cooperative Purchasing -Various government entities have entered into joint ventures to consolidate their requirements in order to obtain lower prices and avoid the bidding process. Some examples of these agreements are county contracts and state contracts.

2. Lease and Lease/Purchase -Leasing and lease/purchase is a valuable method for acquisition of equipment. Vendors and lending institutions have found that they can provide capital financing to school districts as tax exempt loans at rates far below commercial loan rates. Every multiple year lease must contain the standard municipal leasing clause, which makes it possible for a district to terminate a lease at the end of any fiscal year without penalty.

VI. PURCHASING/BUDGETING(Related But Separate Functions)

Inclusion of an item in the budget should not imply authority is given to the administrative staff to make the purchase. All purchases must be approved by the business office.

The purchasing procedures of a district and the approved budgetary appropriations must be coordinated and monitored as part of the budget administration process. Program cost counts.

When insufficient funds occur, specific orders will be rejected and the requisitioner will be directed to adjust the order or secure additional funding through a transfer of appropria-tions.

The Association of School Business Officials, in its Purchasing and Supply Handbook, outlines the following procedures for maintaining adequate budgetary and accounting con-trol:

1. All purchases should be based on purchase orders initiated by those having appro-priate authority.

2. Purchase orders should be approved through one central office by those having appropriate authority.

3. Purchasing practices should be reviewed periodically in order to disclose inequi-ties.

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4. Incoming merchandise should be controlled by the preparation of a receiving report.

5. Vendor invoices should be mailed directly to the accounting department for verifi-cation with the purchase order and receiving report.

6. Invoices should not be recorded as a liability until properly approved.7. Adequate separation of accounting, purchasing, and receiving duties should be

provided.8. Prompt payment of vendors’ claims is necessary.

VII. PROCEDURAL MANUAL

To provide for an efficient procurement operation with the proper authority and delinea-tion of responsibility, it is necessary to have written policies that establish the procedures used in the purchasing of goods and services for the district.

The district’s purchasing procedures must be communicated to all levels of the organiza-tional structure. Employees must be informed of the process and given the information needed to effectively submit requests for their needs. A purchasing manual is an ideal way to inform all staff about the district’s procurement process. The manual should include information about state and local laws, regulations and policies, guidelines to follow in making a request, a flow chart of the steps of the process showing the amount of time expected before delivery, and purchasing practices and procedures. It should also provide details on what to do in special situations, persons to contact for additional information, and samples of the forms to be used, with instructions on how to complete and route them.

A good requisition properly filled out will expedite action and delivery. The following information should be provided on a requisition:

1. Originating school/department, requestor’s signature, and authorized approval.2. Date originated.3. Suggested vendor.4. Department and account to be charged.5. Purpose/justification for order.6. Point of delivery and special instructions.7. Catalogue number, quantity, unit measure, complete description, unit price, exten-

sion, and total requisition charge.

VIII. LEASE VS. PURCHASE

Each time the acquisition of equipment or property is considered, the decision to lease or purchase must be made. The following factors should be given serious consideration:

1. Advantages:a. Avoids capital expenditure for equipment/property, which may only be needed

for a short time.

b. Permits acquisition of equipment/property when funds for purchase are unavailable.

c. Provides for the use of equipment/property, which is not for sale.

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d. Precludes the necessity of disposing of equipment/property when no longer needed.

e. Eliminates problems of owning equipment/property, which may quickly become obsolete.

f. Permits use of new products to determine suitability for use.

g. Satisfies immediate need while awaiting delivery of equipment or appropria-tion of funds for purchase.

h. Ensures an ongoing source of supplies or maintenance for the leased equip-ment/ property.

i. May permit a district to invest its capital outlay funds at a higher rate of return than the interest charges paid in connection with leasing.

j. Hedges against inflation.

2. Disadvantages:a. More expensive over total useful life of the product.

b. May be cumbersome to terminate agreement early if equipment/property is no longer needed.

c. Complicated to arrange and administer.

d. No assurance of the continued use of the equipment/property beyond the end of the lease period or what the cost may be.

Banks, some leasing companies, and a few major vendors, who do sufficient public agency business, offer tax-exempt financing to states, counties, schools and other munici-palities. This type of financing is especially attractive as it permits the lessor to extend financing to school districts at roughly half the interest rate charged to non-exempt bor-rowers. Serious consideration should be given to leasing equipment/property any time tax-exempt financing is made available, even though the cash may be on hand. The reason a lease may be advantageous over a purchase in this instance is because districts could invest the cash on hand at the prevailing interest rate, which is substantially higher than the interest they will pay for the tax-exempt lease.

Typically, lease agreements contain provisions whereby a portion of the payments made “accrues” toward purchase at a later date. These accrual policies generally differ among vendors and are complex, confusing and tend to obscure the actual cost.

The selection of a lease agreement proposal can be a complex task. Constructing a bid form requiring all prospective lessors to provide comparable information such as accrual provisions, lease period, rate of interest, etc. will simplify the selection process.

All lease agreements containing any type of accrual provisions should be scheduled for review at least annually and prior to reaching the point of maximum accruals to determine whether to purchase, replace, or continue the lease agreement.

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IX. WAREHOUSE OPERATIONS

The purposes of warehousing should be carefully studied. The basic element of a good purchasing program includes the acquisition of the right material at the right time, deliv-ered to the right place at the right price. The warehouse is a very useful tool to the educa-tional program by making volume buying possible and implementing standardization of supplies and materials, thus enabling the district to maximize instructional dollars.

Generally, warehousing is the responsibility of the purchasing department. It is generally accepted that the size of a school district (both student enrollment and number of schools) will help determine the need for and the space necessary for a district warehouse. A well-planned warehouse facility will facilitate the operation of a functional system of receiving, storage and distribution.

A “Warehouse Catalog” or “Stock List” should be published by the purchasing department and revised each year. This information should include; stock number, item name, descrip-tion, unit of issue, and price. It is recommended that a cooperative committee made up of the school business administrator or supervisor of purchasing, principals and other admin-istrators, teachers representing various grades and subjects, as well as non-teaching per-sonnel help develop the list of items to be included in the warehouse stock.

X. DESIRABLE WAREHOUSE FEATURES

A central location is preferred, near administrative offices and the school district’s mainte-nance shops. Planning the location to accommodate heavy truck traffic should minimize traffic hazards. The receiving area should be accessible to trucks to permit direct unload-ing. The location selected should also facilitate regularly scheduled delivery routes to all district sites. It is also important to have adequate storage space to meet the needs of the warehouse function. The layout must be such that every foot of storage space is utilized to the maximum level. Storage space must be visualized from the floor up, as well as in terms of horizontal space.

XI. STOCK LOCATOR SYSTEM

Stock location control helps promote quick selection of stock for issue and encourages the maximum utilization of warehouse space. A method of locating and selecting stock should be developed which enables personnel to determine existing locations, consolidate storage and to adjust for extension or reduction of storage locations. A floor plan of the warehouse indicating location of materials and/or supplies by item identification including stock number should be maintained in the warehouse office. A stock locator card file system should be maintained in the warehouse office. A stock locator card is used for each indi-vidual item stocked and is filed by stock number. The stock locator card should include the following information; stock number, description, unit of issue, number of units in each package, reorder level and location of the item by area, section, bin or shelving row.

The warehouse is where deliveries and shipments for the district are made. Upon receipt of each delivery, the warehouse personnel must check the orders to be sure the correct number of packages has been received and the packages are in good condition. Any visi-ble damages or shortage of packages should be noted on the delivery receipt. It is also nec-essary to open the packages to ensure items ordered on the purchase order and as indicated

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on the packing slip included with the shipment are correct. Quantity, size, color, brand name, etc. must be verified.

XII. INVENTORY CONTROL

The need for accurate record keeping within the warehouse is very important, from where an item was purchased, to the fact that it was actually received by the district, and finally, where it ended up. Complete accountability from the purchase to the distribution of ware-house items helps maintain a continuous supply of materials and minimizes the loss and mysterious disappearance of materials. A perpetual inventory of what is maintained in the warehouse should be the responsibility of someone in the purchasing office. It should be noted that the storekeepers should not maintain their own inventory records. This does not provide for proper checks and balances. A physical inventory should be taken at least once a year and records adjusted accordingly.

XIII. DISTRIBUTION

Once the warehouse has been designated as the central receiving point for the district, it also becomes the central distribution point. The purchase order controls the receiving in the same way a requisition controls the distribution of items from the warehouse. A copy of the requisition will always accompany a delivery from the warehouse. The initial order is completed by the school site or department and forwarded to the purchasing office for processing. The original and a delivery copy are forwarded to the warehouse. Supplies are pulled from warehouse stock and set aside by the warehouse personnel. On the scheduled delivery day for that particular site, supplies are delivered and signed for by authorized site personnel. The delivery copy of the requisition is left with the supply order. The original signed copy of the requisition is returned to the purchasing department for further process-ing and posting.

XIV. DELIVERY SCHEDULE

Delivery services should be clearly established and communicated to schools and depart-ments. Generally, weekly or bi-weekly schedules are established for the delivery of ware-house orders. The following are some of the other services typically provided by the ware-house delivery personnel, distribution of school mail, issuance of textbooks and library books, and the pickup and delivery of audio-visual equipment.

XV. CAPITAL OUTLAY INVENTORY

After a purchase order has been processed for the purchase of equipment, a copy would be forwarded to the central receiving department within the warehouse. As the orders are received, the items are checked in by warehouse personnel, including verification of receipt in good condition and correctness to the specifications of the order. The warehouse personnel then tag the item with a pre-printed property control number and record the appropriate information on the inventory log sheet. It is also recommended that items be actually engraved with the property control number with an electric engraver. This will prevent future problems of identification if a tag is lost or removed.

The warehouse personnel forward the completed inventory log sheet to the district busi-ness office for further processing. Business office personnel then enter the information

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into the inventory system. The use of a computerized inventory system is recommended. The inventory system should provide a means to track and monitor inventory. Desirable features to look for when selecting a computerized inventory system are:

1. The required information regarding inventory is included.2. Items deleted from inventory remain in a deleted status, allowing for inquiry or

reporting of deleted items.3. Inventory items moved from one location to another can be easily identified with

the use of the new location field. The latest “old location” is maintained in the sys-tem.

4. Items can be classified into categories by the use of a description code.5. Use of the fund source code can identify where inventory funding originated.6. Deleted or modified inventory items can be examined through the use of change/

delete code, disposition code, and recovery amount, which provides additional information about the action.

7. The ability to generate various reports that would be an asset to the inventory pro-cess.

If an item is to be transferred from one location to another, or is to be removed from the active inventory, a completed District Property Inventory Control Update form should be completed and forwarded to the business office to ensure the inventory is current. It is rec-ommended that a copy of this form be attached to the actual item being removed, thus, the delivery personnel will know the appropriate approval and authorization has been received. The reason for an item being dropped from the inventory needs to be explained on the form, (i.e., worn out, broken, lost, obsolete, etc.).

An actual physical inventory by site should be completed once each year. This inventory will provide the district with verification that all inventory items are accounted for. The importance of accurate maintenance of the inventory during the year cannot be stressed enough. If the inventory is regularly updated, as changes are made during the year, the physical inventory will go smoothly.

If this process is maintained and continuously updated, the district will have accurate records of not only what equipment they own, but where it is located. The use of property control numbers will also be a valuable tool, and will facilitate the identification of prop-erty, in the event of possible losses.

XVI. BIDS, CONTRACTS, PUBLIC WORKS

The school business administrator/supervisor of purchasing is responsible for purchasing and supply management. This work area typically provides for the procurement of supply and equipment needs of the school district, the preparation of supply and equipment items and the authorization of payment of supply and equipment invoices. Contracted services also fall under the auspices of the school business official. To secure bids for contracted services, the board must publish, at least once a week for two weeks in a newspaper of general circulation published in the district, a notice calling for bids, stating the work to be done or materials or supplies to be furnished and the time when and the place where bids

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will be opened. Whether or not bids are opened exactly at the time fixed in the public notice for opening bids, a bid cannot be received after that time.

It is important that the board of education and the supervisor of purchasing recognize that many factors must be considered before rational decisions can be made about the quantity of goods and services ordered and purchased by the school district. It is often false econ-omy to save money by purchasing an item, which cannot do the job required of it, and it is wasteful to spend more money than necessary to purchase a high quality item when a less costly item would do the job as well.

Sound business practices require an ordering procedure which will guarantee, as far as possible, that goods and service purchased by the district will meet the needs of the person or department ordering them, yet will permit purchasing at the lowest possible cost to the district.

Every transaction between a buyer and seller involving the transfer of property, equipment or supplies or the supplying of services should be by purchase order or formal contract. All contracts between a school district and outside agencies must conform to prescribed standards as required by law and should be prepared under the supervision of the chief school business administrator or the supervisor of purchasing, and where appropriate, sub-ject to the approval of the legal advisor of the district.

A contract is a binding agreement. By one definition, “a contract is a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty”. Contracts arise out of agreements; therefore, a contract may be defined as an agreement creating an obligation.

The elements of a contract are: (1) an agreement, (2) between competent parties, (3) based upon the genuine assent of the parties, (4) supported by consideration, (5) made for a law-ful objective, and (6) in the form required by law.

A common practice of many school districts in the procurement of goods is referred to as “piggybacking.” Piggybacking is the process of one governmental entity utilizing the bid of another governmental entity. A school district may piggyback on another bid when it is in the best interest of the district. As a piggybacker, a school district can deal directly with the vendor rather than through the original district buying the goods. If the low bidder reduces the price from the original bid, a school district may purchase from that vendor because it is in the best interest of the district.

If a school district makes the decision to “piggyback,” the board of education must take formal action to do so. It is important that the piggybacking district have all of the proper documentation (i.e., notice calling for bids, acceptance of bid by board action, and con-tract documents). There are no requirements for a school district to provide written autho-rization for another district to purchase off of their bid. However, in order for another district to piggyback on a bid, bid documents should include a phrase that the number of items being bid is an estimated quantity and the district retains the right to purchase more or less of the items. Quite often, other public entities have less restrictive purchase require-ments than school districts. School districts may also piggyback off those bids.

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A public school district’s requirement of bidder’s security, in order to participate in the bidding process, must appear in the bid documents and should read as follows:

All bids shall be presented under sealed cover and must be secured by cash, a cashier’s check, a certified check, or a bidder’s bond executed by an admitted surety insurer made payable to the school district. Such a bond must be issued by a company or individual with a Certificate of Authority to transact surety insurance in Wisconsin.

Public education is a great public enterprise, and the school district business administrator/supervisor of purchasing bears the responsibility for making the purchases and contracting for the services necessary for smooth and continuing operation of the school district. This professional must also be cognizant of the provisions of the Statutes of Wisconsin which relate to the purchasing operations of the school district, and must maintain the highest of ethical standards in all transactions. (Refer to Wisconsin State Statutes 66.29 and 946.13(2)(a)).

To measure the success or adequacy of the purchasing program, it is necessary to assure that the whole educational program is considered and that the purchasing is the result of and fulfills the needs of the whole district regardless of the size or location of the school system.

The whole degree of efficiency of the purchasing program needs to be reviewed as it relates to the ability to get the supplies, materials and equipment needed at the lowest pos-sible costs commensurate with the needs of the school district. A checklist follows for use in evaluating the effectiveness of a local purchasing program.

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CHECKLIST


I. PURCHASING PROCEDURES

A. The district has a clearly defined board policy outlining purchasing procedures.

B. Purchase orders are processed in a timely and efficient manner.

C. Adequate procedures are set up for preparation and processing of purchase orders.

D. Purchase orders and vouchers are numbered and accounted for.

E. Purchase order forms are consistent with normally accepted orders issued.

F. An attempt is made to hold down the number of purchase orders issued.

G. All purchase orders are signed by authorized personnel.

H. Purchases are kept within budget figures.

I. There are adequate procedures for purchasing small items from petty cash or other funds.

J. The purchasing department requires that no purchase or commitments for purchase be made except through the business office.

K. The purchasing department has authorization to make purchases within the law and the budget in accordance with board policy.

L. Invoice extensions and additions are checked on bills.

M. Discounts are taken where applicable.

N. Proper documentation is required prior to paying invoices.

O. Documentation on freight charges is made part of back-up information on orders.

P. Bills are paid promptly.

Q. There is a procedure for payment of partial shipments.

R. Bills are charged to the proper line item account.

S. Vendors are notified of terms, conditions, and payment procedures.

T. Deliveries are checked promptly, discrepancies noted and packing slips are sent to the business office for quick processing and payment.

U. Destination of deliveries is considered when relevant.

V. Poorly performing vendors are documented and removed from vendor lists in accordance with law and regulations.

II. BIDDING AND QUOTATION PROCEDURES

A. State Statutes are adhered to in the bidding process.

B. Requests for bids are advertised at least as required by law.

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C. Bid lists are complete enough to permit free, open and competitive bidding and to encourage a large number of bids.

D. The notice to bidders adequately covers the various bid requirements, such as: time requirements, information regarding location of bid opening and documents required of bidders.

E. Bid bonds or bid deposits are required when necessary.

F. Performance bonds are required where applicable.

G. There are provisions for adequate insurance coverage as deemed necessary by contracts.

H. Provisions are made for prevailing wage requirements and pre-qualifications of bidders as required by statutes.

I. Labeled and sealed bids are opened only at time and place designated in the bid advertisement.

J. Bids are publicly received in the presence of any parties bidding or their agents who desire to be present

K. Complete and accurate tabulations are made on bids where applicable.

L. Awards of bids and contracts are made promptly and follow the statute as to low bidders.

M. There are adequate safeguards to protect the school district if the successful bidder defaults on his contract.

N. Bid files are kept on all bidding transactions.

O. Bid files are indexed by bid number or name.

P. Bid reports are presented to the board of education in an accepted format listing recommendations for bid awards.

Q. Quotations are obtained on all items as required by statute.

R. Quotation files are kept on all legally required quotations.

S. Quotation files are indexed by number or name.

III. PURCHASING PERSONNEL AND EQUIPMENT

A. The business office is adequately staffed in relation to the purchasing function.

B. Responsibilities and duties are clearly defined and job descriptions are available.

C. The staff is receptive to new ideas, methods and procedures.

D. An attempt is made to provide in-service training in the purchasing area.

E. There are routine evaluations of the purchasing personnel.

F. The office layout is conducive to efficient performance of the purchasing functions.

G. There is adequate space for personnel and equipment.

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IV. RELATED PURCHASING FUNCTIONS

A. The board of education, administrators, principals, teachers and non-teachers are involved in the budget process.

B. There is free and adequate interchange of ideas and requirements among the various areas of the school functions with particular emphasis on budget preparation and needs.

C. Cooperative purchasing of supplies and equipment with other school districts, municipalities, cooperative educational service agencies, counties, and the state is done where appropriate.

D. State contracts are reviewed as one purchasing alternative.


REFERENCES

Anderson, R., Fop, I., and D. Twomey, D., Business Law. Ohio, Southwestern Publishing Co., 1987.

Barclay, Brian C., Centralized Purchasing in a Decentralized Environment, School Business Affairs, December 1995.

Benevento, Louis P., Trimming Purchasing Paperwork, School Business Affairs, November 1995.

Burrup, P., Brimley, V. Jr. Financing Education in a Climate of Change. Third Edition.Massachusetts, Allen & Bacon, Inc., 1982.

Candoli, W., Hack, J., Ray, D., and Stollar. School Business Administration. Third Edition.Massachusetts, Allen & Bacon, Inc., 1984.

Enos, Eileen, Procurement Cards Pave the Way to Efficient Purchasing, School Business Affairs, April 1999.

Evaluation Manual for School Business Management. Indiana ASBO.

Everett, Lows, and Johnson, Financial and Managerial Accounting for School Administrators, ASBO International, 1996.

Finkel, Karen, Writing the Right Contract: Getting What You Want, School Business Affairs, February 1998.

Hallwood, Dex, Trimming Purchasing Costs, School Business Affairs, November 1995.

Nelson, D. and Purdy. W., School Business Administration. Massachusetts, D.C. Heath & Co, 1971.

Petersen, John E. and Strachota, Dennis R., Local Government Finance: Concepts and Practices, Government Finance Officers Association, Chicago, IL. 1991

School Purchasing Handbook. California CASBO, 1990.

Wood, Craig R., Principles of School Business Management, ASBO International, 1986.

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CHAPTER 14

OPERATIONS/MAINTENANCE OF FACILITIES

INTRODUCTION

The primary responsibility of the Operations/Maintenance of Facilities Department (Buildings and Grounds Department) is to provide a healthy, clean, and safe environment for all students, staff, administration, and the public who use the school buildings and grounds.

This chapter is broken down into several areas of concern. It covers long- and short-range plan-ning and financing, general policies and procedures, personnel and training, general maintenance, operations and housekeeping, upkeep of grounds, preventive maintenance, environmental pro-grams and safety programs.

A school district’s largest capital investments are its sites, school buildings, equipment and contents. The average cost of school building construction is $75-$125 per square foot. These buildings and grounds must be maintained on a daily and yearly basis.

The maintenance of these facilities is a critical portion of each district’s annual budget. If the bud-get is not adequate, more costly repairs to the facilities will be needed at a future date. Preventive Maintenance is the most cost effective method of maintenance. Some school districts choose to borrow money each year to supplement the general fund for specific capital improvements or projects such as roof repair, building remodeling or other long-range programs. Other districts may choose to incorporate these costs into the general fund or try to get approval through the use of a referendum. Whatever method of financing is used, each district must have a game plan, both long and short-term.

It is difficult to project costs for five years, but projects with estimated costs should be put in motion and updated each year. More specific details of the plan should be projected on a three-year basis with updating for implementation each year.

Three types of maintenance can be identified and broken down as follows:

1. Emergency maintenance – unscheduled work that requires immediate attention and fund-ing to repair or replace the service interrupted.

2. Routine maintenance - repetitive work usually budgeted in the annual budget.

3. Preventive maintenance – scheduled work to provide routine inspections and maintenance of equipment to increase its efficiency, life expectancy, and prevent emergency breakdowns. A good preventive maintenance program will significantly reduce emergen-cies and the downtime of critical equipment. It will also lower repair costs, overtime, and postpone costly equipment replacement.

School buildings have a life cycle comprised of five ages, or phases, according to a study by Benjamin Handler of the University of Michigan. Those five ages, or phases, include:

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Phase One – The first twenty years of a building’s life. Maintenance costs normally are lim-ited to minor repairs and small improvements to reflect changes in the instructional program.

Phase Two – The period between twenty and thirty years. Facilities require increasing amounts of annual maintenance and more frequent replacement of worn-out equipment.

Phase Three – From thirty to forty years. General maintenance needs increase rapidly. Most original equipment should have been replaced and major items such as roofs and lighting fix-tures will need replacing during this time period. This work should not be viewed as emergen-cies but as necessities arising from the natural aging of the buildings.

Phase Four – From forty to fifty years. This is a period of accelerated deterioration. In most instances the needs, the neighborhood and the community have changed. For example, there may no longer be many children in an older building’s attendance area. If well constructed, a fifty year-old building frequently is too new to abandon but too old to be an effective resource of the district.

Phase Five – More than fifty years old. Usually the building should be completely recon-structed or abandoned.

Many factors will have a bearing on the cost and priority of a maintenance program. Circumstances such as the district’s proximity to goods and services, urban or rural location, wealth of the community, state aids, financing, unfunded mandates, state and federal grants, political climate, safety program and school board priorities all play an important part in how a program gets implemented.

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I. LONG- AND SHORT-RANGE PLANNING

A. Evaluation criteria for this section are contained in the following Checklist.

LONG- AND SHORT-RANGE PLANNING CHECKLIST


A. A study of the district’s facilities has been made to determine the adequacy of each, taking the age of each facility, its size, and the size of the district into consideration.

B. The district’s facilities have been reviewed at each grade level to determine their adequacy to support current/future programs.

C. The district has adopted policies for the operation and maintenance of the plant, taking federal and state mandates into consideration.

D. The district has a long-range plan for the operation and maintenance of the plant.

E. The district has a well-planned, long-range, three to five-year planning program for buildings, grounds and equipment.

F. The long-range plan includes information on financial resources, human resources, and equipment needed to meet the objectives.

G. The long-range plan also includes detailed year-by-year listings for major maintenance projects, deferred maintenance projects, renovation projects, and new facilities construction projects.

H. The district has short-range goals and objectives in place.

I. The school board and administration supports a well-planned, properly funded and staffed maintenance program.

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II. GENERAL POLICIES AND PROCEDURES


GENERAL POLICIES AND PROCEDURES CHECKLISTComplete In Progress N/A

A. An organizational chart of the operation and maintenance depart-ment is used to define lines of authority and responsibility. The chart shows how the department fits into the overall structure of the school district.

B. The school board has adopted policies for the department and those policies are regularly updated and are on file in the office of the Supervisor of Buildings and Grounds in a clearly identified and bound manual.

C. The school board understands the necessity of a well-planned maintenance program.

D. The district maintains a policy for the use of buildings and sites by any group for other than school use.

E. The department is notified of building uses for purposes of scheduling and energy usage.

F. The department has policies and procedures to facilitate the operation of the department. This includes work and safety rules, personal injury and accident procedures, vehicle accidents, and such.

G. Procedures have been developed to handle emergency situations, such as power outages, boiler malfunctions, or other equipment failures that affect normal school operation.

H. Procedures have been developed to handle disasters such as fires, tornadoes, snowstorms and other severe weather to minimize their effect on normal school operation.

I. Requests for budgetary consideration are developed by the Supervisor of Buildings and Grounds, including adequate documentation to explain how funds are to be expended and to serve as a guide during implementation.

J. An adequate percent of the annual budget is set aside for maintenance.

K. Sufficient money is budgeted for overtime.

L. Annual increases for maintenance are provided in the budget as needed.

M. An evaluation is made to determine whether it is more beneficial to fund maintenance projects by borrowing or operating on a cash basis out of the current budget.

N. Periodic budget reports are provided to the department to assist in financial management by the supervisor and staff.

O. The department has adequate financial and human resources to provide for the efficient, safe operation of the facilities.

P. Mechanical/technical resources are available.

Q. An active safety program is in effect.

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R. An active safety committee is in place, which meets regularly and acts on its recommendations.

S. The district takes advantage of dollar-saving programs such as smart money, blueprint for saving, and state and federal grants.


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III. PERSONNEL AND TRAINING

A. The Supervisor of Buildings and Grounds (Title selected for use in this chapter) could have a wide and diverse background depending on the district’s requirements. This person may have come up through the ranks of the custodial or maintenance depart-ment or received technical training in this field. Other districts may require a degree in a specific field such as registered engineer.

The responsibilities of the Supervisor of Buildings and Grounds will usually vary according to his/her background and training. The supervisor may be responsible for specific areas, such as the cleaning and custodial staff or general maintenance of the buildings and grounds. In other districts the head of the department may be required to handle both areas including the budget, specifications, state and federal mandates, drawings, engineering, hiring, bidding and recommending bidders. The supervisor should be encouraged to obtain a Registered School Business Official’s rating (RSBO) through the Association of School Business Officials, International (ASBO). The Supervisor of Buildings and Grounds and staff should be treated as an integral part of the district. Secretarial assistance should be provided for the typing, computer pro-grams and record keeping. This is especially vital when the supervisor is out of the office.

This position could have several assistants in various areas of expertise, for example, an assistant for safety, for operations, or for maintenance. A designated person for safety responsibilities is a requirement. Usually this was the responsibility of the Supervisor of Buildings and Grounds but, with more and more mandated programs, it is becoming increasingly more important to hire an individual strictly for the safety function. Another option for a district is to contract with private companies to handle the work necessitated by programs mandated by the state and federal governments.

The person responsible for the Operation/Maintenance of Facilities has a variety of titles in the State of Wisconsin - Supervisor of Buildings and Grounds, Buildings and Grounds Director, Custodial Supervisor, Maintenance Director and Operations Manager. This position should be considered a part of the administrative team.


PERSONNEL AND TRAINING CHECKLISTComplete In Progress N/A

A. The district has adequate operation and maintenance staff to provide for the needs of the district.

B. Each position has a job classification and job description on file that accurately reflects the job duties.

C. Personnel are assigned to jobs consistent with the job classification and the person’s abilities and training background.

D. The staff is provided with training opportunities to improve technical, human relations, and leadership skills.

E. An orientation program is used to indoctrinate new employees, outline policies and procedures, and to provide in-service for Right-to-Know and asbestos.

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F. Training opportunities consist of a combination of in-service, conferences, seminars, and formal education.

G. Staff members are periodically evaluated using an objective evaluation system and written reports are kept on file.

H. The evaluation process provides the employee with an opportunity to discuss his/her performance with the supervisor and be provided with specific direction for improvement.

I. The progressive disciplinary program is used to correct employee deficiencies.

J. A grievance procedure has been developed and made accessible to all employees and is uniformly administered by the supervisory staff.

K. An absenteeism control system is used to minimize worker absenteeism with a clearly written policy that is uniformly administered by the supervisory staff.

L. Employment procedures are in accordance with local, state and federal mandates.

M. Vacancies are filled with the best available person.

N. Promotion from within the organization is encouraged.

O. The staff is sufficiently experienced or trained to perform efficiently in all areas of responsibility.

P. Schedules are in place and followed for operational personnel.

Q. Schedules are maintained for drivers who transport food between buildings.

R. There is a method to train substitute personnel.

S. Current lists are kept of substitute drivers and schedules are available for their use.

T. The staff is involved in the development of the policies that affect their day-to-day operations.

U. Driver licenses are inspected and checked at least once a year for validity.

V. The district has an emergency medical plan in place for routine injury and catastrophic events.

W. Access to personnel records and documents is restricted to ensure necessary confidentiality but is available to staff as required.

X. The current salary schedule compares favorably with positions in other school districts.

Y. A written negotiated contract is in existence.


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IV. DEPARTMENT OPERATIONS


DEPARTMENT OPERATIONS CHECKLISTComplete In Progress N/A

A. The master files for construction contracts, plans, specifications, and shop drawings are centrally located in the supervisor’s office.

1. The records are in a fireproof room and are stored in file cabinets, drawers, and hanging files to properly preserve these valuable documents.

2. A non-destructive fire suppression system is installed in the storage area.

3. A check-out system with controls is used to ensure that no documents are “lost.” However, they are readily available on a need-to-use basis for workers.

B. The departmental personnel records, correspondence, building files, and other necessary information is properly filed and stored so as to ensure current and future availability.

C. An inventory and maintenance record is kept on operation and maintenance equipment.

D. An inventory record is kept on materials and supplies utilized in the operations and maintenance of plant.

E. All maintenance requests and follow-up are prepared in writing on prescribed forms.

F. The Supervisor of Buildings and Grounds reviews all maintenance requests and establishes a procedure to assign completion of tasks according to a priority system.

G. Provision is made for the inspection and approval of all work completed including maintaining adequate records.

H. Adequate job cost records are maintained.

I. A set of up-to-date blueprints and specifications is on file in the office of each building, as well as the office of the Supervisor of Buildings and Grounds.

J. Adequate office space is provided for the Supervisor of Buildings and Grounds and staff.

K. Secretarial services are provided for the staff.

L. Adequate equipment, materials, and supplies are provided for an effective operations and maintenance program.

M. There is a method in place to determine whether jobs are to be contracted or completed in-house.

N. Maintenance projects clearly beyond the capabilities of the existing staff are contracted out.

O. A current list is kept of available outside contractors.

P. Daily, weekly, and monthly work schedules are written and updated periodically.

Q. An inventory of all supply items is maintained.

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R. There is an efficient requisition procedure for the acquisition and distribution of supplies.

S. Updates of facilities and equipment values are done annually for insurance purposes.

T. Competitive bids, using adequate specifications, are received for the purchase of maintenance and custodial supplies and equipment, special repair work contracts, and long-range capital outlay projects as stated in board policy.

U. Inspection and approval is required for all work completed.

V. An adequate preventive maintenance program is operating.

W. A summer, winter, and holiday operations and maintenance program is in place.

X. Buildings are checked when school is not in session-weekends, holidays, and vacations.

Y. A plan is in place for reporting acts of vandalism promptly, making repairs as soon as possible, and completing necessary written reports as soon as possible.

Z. Building equipment is scheduled to run only as needed for the maintenance of occupant comfort and consistent with good operating practices and energy conservation.

AA. The energy management function is well integrated into the custodial and maintenance operations of the physical plant department.

AB. Adequate funding is provided for energy conservation projects through grants, budget line items, bond issues, and/or other creative financing means.

AC. Building energy audits are routinely performed and energy conservation suggestions are solicited from occupants and building operators.

AD. Electric and gas meters are read monthly and consumption reports are accurately prepared to compare usage with the same period in the previous year.

AE. An evaluation has been made to determine the most efficient way to handle and distribute inter-school mail.

AF. Computers are utilized in the daily operation of the department.


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V. MAINTENANCE DEPARTMENT


MAINTENANCE DEPARTMENT CHECKLISTComplete In Progress N/A

A. The maintenance department is properly trained and ade-quately staffed to carryout its program.

B. District maintenance staff does work properly and efficiently.

C. Inspection and approval is required of all contract work.

D. A coordinated system of maintenance performed by staff or by contracts awarded for special jobs is working satisfactorily.

E. There is a planned program of maintenance.

F. The present program of maintenance is effective and efficient.

G. The present program of maintenance is economical.

H. The maintenance budget is adequate for the present program.

I. The morale of maintenance staff is good.

J. There is a process designed to regularly survey other district professionals about the maintenance program.

K. Teachers and professional staff feel that the buildings and grounds are maintained regularly and properly.

L. A maintenance shop, specially designed for repair work, is provided.

1. The maintenance shop is centrally located.

2. The shop is well-lighted, ventilated, heated, and conducive to practicing good safety procedures.

3. Adequate shop equipment is provided.

4. All power equipment is properly grounded.

5. All equipment is kept clean and in good repair.

6. Employees are trained in the proper use of all equipment, including hand and power tools.

M. Vehicles are provided for staff members appropriate to their needs on the job.

1. Vehicles and plows are in good condition and repair.

2. There is a regular schedule of vehicle and equipment replacement.

3. Employees are not allowed to use school vehicles for personal use.

4. Adequate maintenance records are kept for all vehicles and equipment.

5. An inventory of all vehicles and equipment is maintained.

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N. An adequate stock of the following maintenance supplies is readily available to meet normal day-to-day requirements.

1. Glass or acrylic for window replacement.

2. Lumber.

3. Hardware items, such as: hinges, panic bars, door closers, nails, screws.

4. Plumbing supplies.

5. Electrical supplies.

6. Paint.

7. Heating supplies.

O. Maintenance personnel are available to make emergency repairs at all district facilities.

P. Self-contained and mobile equipment is ready for use in making repairs at all district facilities.


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VI. OPERATIONS AND HOUSEKEEPING DEPARTMENT


OPERATIONS AND HOUSEKEEPING DEPARTMENTCHECKLISTComplete In Progress N/A

A. An adequate stock of custodial supplies and materials are stored to meet day-to-day requirements.

B. Housekeeping is monitored through the use of daily work schedules.

C. There is a regular inspection process for housekeeping activities.

D. A pest control program is in place and use of chemicals is carefully monitored.

E. A procedure for seasonable housekeeping activities such as window washing, floor stripping, waxing, and carpet cleaning is scheduled and the completed work is regularly inspected.

F. Boiler rooms are properly cleaned and maintained in accordance with safety regulations.

G. Chemicals are disposed of in accordance with local, state, and federal regulations.

H. Provisions are made for trash disposal on a daily basis or as frequently as needed to maintain a clean and healthy environment.

I. Trash disposal containers are of safe and fire retardant design and maintained in accordance with health standards.

J. Custodial supply closets are equipped with sinks, hot and cold water, shelves for supplies, and racks for appropriate equipment storage.

K. There is an evaluation program for new equipment and materials.

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VII. UPKEEP OF GROUNDS


UPKEEP OF GROUNDS CHECKLISTComplete In Progress N/A

A. Provisions are made for timely snow removal for opening of schools.

B. Trees, shrubs, and lawns are maintained.

C. Grounds are kept free of litter.

D. Parking lots are hard surfaces, lighted, kept clean, and marked for parking.

E. Playground equipment is inspected periodically and maintained in a clean, safe condition.

F. Playgrounds, physical education and athletic fields are maintained in a safe and usable condition.

G. Flag is flown daily and properly.

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VIII. PREVENTIVE MAINTENANCE


PREVENTIVE MAINTENANCE CHECKLISTComplete In Progress N/A

A. The district has a well-planned preventive maintenance program for buildings, grounds, and equipment

B. Air, water, and oil filters, as well as drive belts on HVAC equipment are inspected, cleaned or replaced on a scheduled basis.

C. Equipment is lubricated on a regular basis.

D. Accurate records of Preventive Maintenance functions are maintained.

E. Buildings including tunnels, pits, storage areas, and manholes are visually inspected on a regular basis.

F. A schedule is established for seal coating driveways and parking areas.

G. Doors are checked for free operation, proper closings, broken or missing parts, as well as air infiltration on a regular basis.

H. Washers, seats and seals are replaced in lavatory facilities when necessary.

I. The free and full movement of all automatic and manual valves are checked regularly.

J. Plumbing is checked for inoperative pressure regulators, valves, meters and float assemblies, as well as leaks on a regular basis.

K. Heating, cooling, and fire prevention lines are flushed annually.

L. The operation of all sump and sewage injection pumps are checked regularly.

M. Boiler hot and chilled water systems are treated.

N. All heating and cooling coils are checked for leaks and cleanliness on a regular basis.

O. Boilers and heat exchangers are inspected on a regular basis for proper operating limits, combustion, water level controls, and leaking seals and tubes.

P. Heating oil system check valves, pressure regulators, and filters are inspected for potential leaks on a regular basis.

Q. Condensation pumps are checked for leaks and functioning of the float assembly to ensure proper operation.

R. Steam traps are replaced or rebuilt as necessary.

S. Fuel, water, and oil tanks are monitored and inspected for possible leaks regularly.

T. Roofs and drains are inspected for blockages, damage and leaks monthly.

U. Proper damper operations on unit ventilators, fresh-air intakes and large zone units are checked regularly.

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V. HVAC controls including thermostats and zone valves are inspected regularly.

W. Air compressors are checked for pressure build up, faulty limit switches and leaks as necessary.

X. Air conditioning roof-top units, including cooling towers and chillers, are checked for proper operation, pressures and leaks annually at start-up.

Y. Electrical wiring is inspected for exposed conductors, weak or inoperative breakers and signs of overheating on a scheduled basis.

Z. Transformers and switch gear are checked for loose or burned connections, leaks and PCB contamination.

AA. Time clocks for lights, boilers, and HVAC are checked regularly.

AB. Pull stations on the fire alarm system are checked weekly.

AC. Emergency generator testing is completed for the circuitry on a monthly basis.

AD. Fire extinguishers, including the kitchen overhead systems and the sprinkler systems are inspected regularly.

AE. Refrigerators, freezers, and compressors are checked for proper operation limits, loose connections, and leaks.

AF. A planned program for replacing carpeting and other floor surfaces is in place.

AG. the district has a planned program for painting classrooms and other areas of the building.

AH. The district has a plan in effect for replacing lighting in classrooms and other areas of the building.


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IX. ENVIRONMENTAL AND SAFETY PROGRAMS


ENVIRONMENTAL AND SAFETY PROGRAMS CHECKLISTComplete In Progress N/A

A. Asbestos

School districts must comply with all federal and state regula-tions concerning asbestos, including the 1988 Asbestos Haz-ard Emergency Response Act (AHERA). Every district must determine whether asbestos is present in its schools, how sig-nificant existing or potential problems are, and what control measures are needed.

1. Building plans and remodeling records have been reviewed to locate the existence of friable asbestos materials.

2. Buildings have been inspected to locate friable materials.

3. Inspection of insulation and pipes and boilers has been done.

4. Samples and analysis of friable asbestos materials have been completed.

5. The district has an agreement with an accredited laboratory to provide emergency and routine sampling and testing of asbestos and advising on asbestos management.

6. A qualified and experienced agent has been selected to determine the present and potential exposure.

7. An asbestos management plan is on file in each district building for that school or building and in the office of the Supervisor of Buildings and Grounds.

8. These plans have been implemented and progress is on schedule.

9. Employees and the public have been notified of the presence of any friable asbestos containing materials in their school buildings as required by law.

10. Notices have been posted in all buildings to notify the public of the presence of any friable asbestos containing material in those buildings where it is present as required by law.

11. School employees have received the required 2 hour, 16 hour, 24 hour and 32 hour training as defined by AHERA.

12. New employees have been trained and fitted with negative pressure respirators after appropriate physical examinations required by AHERA law.

13. Proper and adequate safety equipment is available to employees.

14. Contractors and other non-school employees involved in the asbestos abatement program have required training.

15. Labels have been posted designating the asbestos in maintenance areas and boiler rooms.

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16. Employees and parents have been notified of the location of asbestos in buildings and have access to asbestos management documents.

17. All employees keep appropriate records as directed by their supervisors and required by law.

18. All employees who transfer from one building to another are trained as to the location of asbestos within the new building.

19. A license abatement contractor or a trained response team is available to respond to asbestos fiber release episodes.

20. Asbestos inspections are performed by the building head custodian or other designated person every 180 days to comply with AHERA regulations.

B. Hazardous Chemicals and Chemical Hygiene Plan

The school district should have a list of all hazardous chemi-cals used in the facilities. Material Safety Data Sheets (MSDS), which can be procured from the U.S. Department of Labor, provide you with specific information on the chemicals used.

The purpose of a Chemical Hygiene Plan is to protect employ-ees from health hazards associated with the use of hazardous chemicals and to assure that employees are not exposed to substances in excess of the permissible exposure limits as defined by OSHA.

OSHA requires employee training and information, medical consultation and examinations, hazard identification, respira-tor use, and record-keeping.

1. There is a binder in the office of the Supervisor of Buildings and Grounds with an MSDS on every substance on the list of hazardous chemicals.

2. All hazardous chemicals are properly labeled listing the chemical identity, appropriate hazard warnings, name and address of manufacturer, importer, or other responsible party.

3. The labels are updated as necessary

4. Custodial employees are trained in acknowledging the proper handling of chemicals that they use daily as it relates to the Hazardous Communication Law.

5. A pest control program is in place and the use of chemicals is closely monitored.

6. The school district has developed a Chemical Hygiene Plan.

7. A copy of the plan is available to employees in the office of the Supervisor of Buildings and Grounds.

8. The plan is reviewed and revised as necessary.


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C. Lead

Lead is a heavy, soft, bluish-white metal found mostly in com-bination with other metals. It may be present in food, air, dust, paint, water, gasoline, and other sources. Lead has many effects throughout the body that may hurt the growth and development of children.

1. Proper precautions are taken to ensure that students and employees are not exposed to lead.

2. Employees are trained in the proper method of the safe removal of lead paint.

3. Measures are being taken to identify lead levels in the district's water supply, and steps are being taken to lower any high lead levels.

D. Radon

Radon is a radioactive gas in nature. You cannot see it, smell it, or taste it. High levels of radon are sometimes found in buildings, especially in basements and lower levels. The only known health effect associated with exposure to high levels of radon is increased risk of developing lung cancer. Smoking may increase the risk of exposure to radon.

1. All buildings are checked periodically for radon.

2. All smoking is prohibited in district buildings to reduce risk of radon exposure.

3. Buildings are ventilated by opening windows and turning on fans when practical to increase air flow.

4. Activities are curtailed as much as possible in basements and below grade levels.

E. Air Quality

1. Building ventilating systems bring in adequate amounts of fresh outdoor air.

2. Building ventilating systems are well-designed and maintained.

3. Particulate and gaseous filters are properly

4. maintained.

5. Energy costs are balanced with indoor air quality considerations and employee health and productivity costs.

F. PCB’s (Polychlorinated Biphenyls)

PCB's are a family of more than 200 chemical compounds which range from oily fluids to heavy greases. They were commonly used to cool and lubricate electrical transformers and capacitors. They were also used in the manufacture of plastics, adhesives, paints, varnishes, and caulking com-pounds. Use of PCB’s was prohibited by Congress in 1976.

1. Proper disposal is made when equipment containing PCB’s is removed from service.


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2. The Supervisor of Buildings and Grounds is knowledgeable concerning the proper disposal of equipment containing PCB’s as set down by the EPA office of Toxic Substances.

3. The Supervisor of Buildings and Grounds is familiar with and follows through with the necessary record keeping concerning PCB’s.

G. Wooden Ladders

1. New Ladders

a) All wood for ladders is of straight grain, thoroughly seasoned stock, free from large checks, shakes, decay, or injurious knots.

b) No ladders are purchased over thirty feet in length.

c) The width between the side rails at the base is not less than 11-1/2 inches for ladders up to and including twelve feet in length.

d) The width between the side rails is increased at lest ¼ of an inch for each foot of length.

2. Maintenance of Ladders

a) Ladders have been protected by applying boiled linseed oil or a clear material such as shellac.

b) Ladder rails are occasionally sanded smooth and refinished.

c) Ladders are checked carefully before using.

d) Ladders are stored on ladder racks and

e) protected from the weather.

f) Extension ladders are equipped with at least two automatic locks of an approved design.

H. Waste Fluorescent Lamps and Incandescent Bulbs

Waste lamps and bulbs are regulated as hazardous waste because they contain toxic heavy metals. If these lamps are burned or thrown into landfills, the mercury and lead in them can be released into the environment where contamination problems may occur.

I. Waste lamps are recycled whenever possible.

1. Waste lamps not recycled are disposed of according to hazardous waste regulations.

J. Confined Space Program

A “confined space” may be generally defined as any area which has limited means of egress and is subject to an oxygen deficient atmosphere or the accumulation of toxic, explosive, or flammable atmospheres such as tanks, vats, boilers, bins, tunnels, sewers, and pits. Potential killers are oxygen defi-ciency, explosive or flammable gases and vapors, and toxic gases and vapors. Another hazard encountered in confined spaces is high temperature.


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1. Confined spaces within the school district have been identified.

2. Employees are aware of the dangers of confined space.

3. Employees have had training in safety precautions concerning confined spaces.

K. UST’s - Underground Storage Tanks (Petroleum)

1. New and existing tanks are constructed of materials in accordance with federal UST regulations.

2. New and existing tanks are equipped with catchment basins, as well as one of the following - automatic shut-off devices, overfill alarms, or ball float valves.

3. New and existing tanks are monitored periodically according to current regulations.

4. Existing piping that does not meet current requirements has been upgraded.

L. Safety Committees

1. The school district has selected a safety committee to create and maintain each employee’s active, positive interest in safety.

2. A specific list of duties has been assigned to the safety committee.

3. The safety committee uses an open forum approach where personnel at all levels can take part and discuss accident causes and means of prevention.

4. The safety committee assists new employees in becoming familiar with district practices and rules relative to their safety and the safety of other employees.

M. “Employees’ Right to Know” Law

This law requires all public sector employers in Wisconsin to inform workers about toxic substances, infectious agents and pesticides used in the workplace.

1. The district posts notices in the workplace informing employees of their right to request information about toxic substances, infectious agents, and pesticides.

2. The district provides the required information about such substances in response to written requests from employees.

3. Employees who are routinely exposed to toxic substances, infectious agents, or pesticides are provided with education and training.

4. The district maintains Material safety Data Sheets (MSDS) on toxic substances or keeps a list of toxic substances in the workplace.


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N. Community’s “Right to Know”

Because of local concern about chemical spills and other catastrophes, the Emergency Planning and community Right-to-Know Act was passed as part of the SARA Title III amend-ments in 1986. The law was written to help communities plan for chemical accidents by providing them with information on the chemicals stored, used, disposed of, and discharged by public or private operations.

1. Notification is given to state and local authorities when extremely hazardous substances are used or stored in quantities equal to EPA’s Threshold Planning Quantity (TPQ).

2. Local and state authorities are notified in the event of a spill or other accidental release of an extremely hazardous substance.

3. Local and state authorities are provided with MSDS’s for any hazardous chemicals that are stored or used in the district.

O. Disposal of Hazardous Wastes

1. The district has a hazardous waste management system in place.

2. Hazardous wastes have been identified by gathering information personally, through departmental report, by questionnaire, and by studying the district’s Material Safety Data Sheets.

3. Effective ways to reduce the amount of waste generated have been studied.

4. Purchasing policies have been reviewed since surplus products sometimes result from overbuying.

5. Requirements under Title III of SARA are being met.

P. Recycling

1. The following hazardous wastes are currently being recycled:

a) Spent materials - those that have been used and because of contamination can no longer serve their original purpose.

b) Listed and characteristic sludges - residues from treating air or wastewater or residues from pollution control.

c) Commercial chemical products.

d) Scrap metal.

2. Hazardous wastes are recycled in the proper manner according to U.S. Environmental Protection Agency requirements.

3. Non-hazardous recyclables such as paper, plastics, metals, glass, used oil, and lead acid batteries are separated from other waste material.


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4. These non-hazardous recyclables are handled in the proper manner.

5. Organic materials such as yard waste are composted whenever possible.

Q. Bloodborne Pathogens

Bloodborne pathogens are pathogenic bloodborne microor-ganisms including, but not limited to, the HIV/HBV. The pur-pose of regulations concerning bloodborne pathogens is to limit occupational exposure to blood and other potentially infectious materials since any exposure could result in the transmission of bloodborne pathogens which could lead to disease or death.

1. The district has a Bloodborne Pathogen Plan in place to protect personnel whose job might require providing first-response medical care in which there is reasonable expectation of contact with blood or potentially infectious materials.

2. This plan also includes a provision for the proper disposal of such materials.

3. The district has identified in writing tasks and procedures as well as job classifications where occupational exposure to blood occurs.

4. Training is available for those employees who may be exposed to bloodborne pathogens.

5. The district has made gloves available to employees who may be exposed to bloodborne pathogens.

6. Employees are familiar with the proper method of handling contaminated material to minimize exposures.

7. Custodial employees are familiar with the proper method of cleaning contaminated areas.

R. Americans with Disabilities Act (ADA)

The ADA prohibits discrimination against “qualified individu-als with disabilities” in all employment practices, including job application procedures, hiring, firing, advancement, com-pensation, training, and other terms, conditions, and privileges of employment. It applies to recruitment, advertising, tenure, layoff, leave, fringe benefits, and all other employment-related activities.

The ADA defines an “individual with disability” as a person who has a physical or mental impairment that substantially limits one or more major life activities, has a record of such an impairment, or is regarded as having such an impairment.

1. Application procedures and interview processes are available in alternative formats to applicants with vision, hearing, or manual impairments.

2. Current job descriptions have been reviewed for accuracy and completeness with respect to “essential functions” of each particular position.


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3. Jobs have been identified for which post-offer/pre-employment physicals are given.

4. If a decision is made not to employ an applicant, the district confirms that generally accepted medical evidence supports this and details the specific job duties that the applicant would be unable to perform or that would create a “direct threat” to health or safety.

5. Employment tests are designed to measure an applicant’s job skills and aptitude and not the applicant’s impaired sensory, manual, or speaking skills.

6. Employee benefit plans and insurance policies have been reviewed to confirm that they are uniformly applied to all employees.

7. All contracts with employment agencies, labor unions, and training organizations have been reviewed to confirm that contractual provisions do not seek to circumvent the requirements of the ADA.

8. The school district has ascertained that employees with disabilities have equal access to break rooms, employee lounges, cafeterias, and other non-work facilities provided by the district.

9. The district has ascertained that employees with disabilities have equal opportunity to attend and participate in district-sponsored social events.

10. Human resources personnel, supervisors and staff have been educated concerning the ADA’s requirements.

S. Fire Safety Provisions

1. The buildings are in compliance with the state and local fire safety codes.

2. A complete file of applicable fire/safety rules and regulations is available and up to date.

3. The buildings are inspected by school personnel and at specified intervals by public inspectors as a precaution against explosion, fire and other safety hazards.

4. The installation of all electrical conduits, wiring and related devices has been inspected and approved by an electrical inspector.

5. Fire extinguishers and other fire-fighting equipment are readily accessible and selection is determined by area served.

6. Fire alarms are distinct from regular program signals.

7. Fire alarm stations are placed in accordance with state and local fire safety codes.

8. An alternate alarm system is available for use in the event of a power failure.

9. All fire alarms are placed so as to be heard throughout the entire building.


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10. The alarm system is designed so that the master control quickly designates the location of fire or machinery failure.

11. Emergency gas and electric shut-off switches are located in areas where heavy-duty equipment and machinery are used.

12. Emergency lighting back-up systems are installed in accordance with state and local fire safety codes.

13. All fire extinguishers and sprinkler systems are inspected annually.

14. Fire alarm systems are operated, inspected and tested as required by state and local fire safety codes.

15. Fire and tornado drills are conducted periodically.

16. A plan is in place for proper procedures to follow during a tornado watch or a tornado warning.

T. Swimming Pool Provisions

1. The pool is periodically inspected by the head custodian or other designated person.

2. The pool and filters are checked daily for proper operation, flow, chemical content and leaks.

3. The potable water supply system serving the pool and all plumbing fixtures is protected against backflow by either an acceptable air gap or an approved backflow preventer device.

4. The walkway around the pool is unobstructed and not less than four (4) feet wide.

5. An unobstructed walkway not less than three (3) feet is provided on the side and behind a piece of diving or deck equipment.

6. The entire deck area is slip resistant, easily cleaned, nonabsorbent, and water readily flows toward drains.

7. There is no visible growth of microorganisms on any pool enclosure surface.

8. A drinking fountain is provided.

9. Depth markers are provided on the deck next to the pool and, if possible, above the water surface on the pool wall.

10. Where water surface is less than five (5) feet, the words “NO DIVING” are placed between the depth markers on the deck.

11. The pool has the required number of ladders and all are corrosion resistant, sturdy, and with slip resistant treads.

12. Flow controls and rate of flow indicators are accessible and operable.

13. The required water re-circulation rate is known and is being met by the re-circulation and water treatment system.

14. An appropriate chemical test kit is available and ready for use.


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15. The pool is equipped with the following safety equipment:

a) Long spineboard.

b) Approved first aid kit.

c) A twelve (12) foot rescue pole.

d) A ring buoy with rope.

e) A whistle, megaphone, or public address system.

f) An emergency telephone.

16. A lifeline separating shallow and deeper areas is in its intended place, unless it is removed for a supervised activity.

17. The pool locker room has safe and sanitary conditions in dressing, shower, and toilet facilities.

18. Signs are visible referring to the “Rules for Swimming Pool Use” and “Bather Capacity Limits.”

19. An “Operation Report” is available showing current daily pool operational data.


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REFERENCES



Dennis Carpenter. Facilities Management. Michigan ASBO, 1991.

Guide for Evaluating the Business Functions of a School District. New Jersey ASBO, 1975, updated 1985.

Wisconsin Department of Corrections OSHA Compliance Seminar, Madison, WI, April 13, 1993, Presented by Dan Stenger, CSP, ARM and George Kattleman, CSP, Sentry Parker Services, Stevens Point, WI.

Wisconsin School Safety Coordinators, Inc. (WSSCA) Handbook. 1986, Revised 1989.

Occupational Health and Safety Technical Assistance Manual. State of Wisconsin Department of Administration, Bureau of State Risk Management, 1993.

Environmental Compliance in Wisconsin BLR – Business and Legal Reports, Inc. February, 1993

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CHAPTER 15

FOOD SERVICE MANAGEMENT

INTRODUCTION

A school food service program is a unique business enterprise operating within an educational institution. While the program must be organized and managed using sound business principles, at the same time the program strives in the educational roles of preparing children for learning, and supporting the teaching and learning process in the district. To be a viable operation, it is important that the program offer products and services that are high quality, competitively priced, and nutritionally sound. Pricing must be adequate to cover not only operational costs but reinvest-ment as well. Reinvestment is more than the replacement of equipment, it also includes improve-ments in training and staff development, food preparation, service, and supplies. These improvements build strength and ensure the financial viability of the food service operation, both now and in the future.

I. FOOD SERVICE MANAGEMENT


FOOD SERVICE MANAGEMENT CHECKLISTComplete In Progress N/A

A. District Organization

1. The objectives and purposes of the food service program are defined.

2. The district food service policies and procedures allow for program operation in accordance with State and Federal regulations and local needs.

3. The food service program is under the supervision of a trained food service director who is a full-time employee whose primary interest is that of managing the program.

4. The food service director has a degree in foods and nutrition, hospital dietary food service management, or combination thereof.

5. The food service director meets the requirements of the position as established by the board of education.

6. The food service director is included in the appropriate administration level and building level meetings so decisions that affect the food service program are fully considered.

7. The food service director is encouraged to attend conferences and seminars designed to update skills and improve knowledge that will benefit the program.

8. The food service director is encouraged to be an active member in professional state and national organizations.

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9. The lines of authority and responsibilities are clearly defined for proper administration and supervision of the food service program.

B. Communication

1. The objectives and purposes of the food service program are communicated to students, staff, and the community.

2. A procedure for student, staff, and community involvement is established and utilized.

3. The food service director utilizes a variety of communication techniques to inform the students, community, staff, administration, and board of education about the food service program through presentations in classrooms, meetings, in-service sessions, monthly menus, and newsletters.

4. The food service director regularly communicates with the food service personnel through staff meetings, memos, and/or site visits as a means of communicating program expectations, needs, modifications, and to improve program quality and performance.

5. Local news media are kept informed of newsworthy activities relating to the food service program

6. Food service personnel consciously strive to improve the image of Child Nutrition Programs by always projecting a pleasant professional appearance and attitude.

C. Merchandising

1. The food service department surveys student food preferences periodically.

2. Menus are enhanced through:

a) Providing choices.

b) Using creative artwork.

c) Using descriptive names.

d) Publicizing menus in the media.

3. Innovative methods of service have been implemented (soup or salad bars, family service, express service, self-service lines, etc.).

4. Holidays and special events are recognized with appropriate promotions, cafeteria decorations, and meal service.

D. Personnel

1. Food service personnel know the objectives and purposes of the food service program.

2. Food service personnel know the nutritional components of the school lunch meal pattern.


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3. Job descriptions are reviewed and revised regularly to clearly define the levels of responsibility and supporting qualifications.

E. Job descriptions contain the following items:

a) Position title

b) Qualifications

c) Performance responsibility

d) Direct accountability

F. Work schedules are provided for all employees with consideration given to daily menu, personnel, and equipment.

1. A dress code, a code of conduct, and work rules have been established and are adhered to.

2. A formal employee performance assessment system has been implemented and is performed on a regular basis.

3. The food service director is actively involved in food service staff negotiations.

4. Food service personnel are provided with and encouraged to participate in appropriate training programs that will enable them to perform their duties more efficiently and to grow professionally.

5. The food service personnel are encouraged to attain food service certifications and to be active members in professional organizations.

6. A checklist of various tasks to be performed in the training of new and substitute employees has been developed and is being utilized.

7. A policy of staff rotation is utilized to cross-train employees and to give everyone in the kitchen an appreciation for the different jobs within the kitchen.

8. Food service personnel are given opportunities to offer input into program goals or possible solutions to problems.

9. Food service personnel are encouraged to attend appropriate district and building level meetings.

G. Accounting Procedures

1. The food service program operates as a self-supporting entity on a non-profit basis.

2. Projections of revenue and expenditures are established prior to the start of the school year.

3. Financial statements are reviewed and compared monthly to the budget so potential financial problems may be dealt with in a timely manner.

4. Accurate accounting procedures are in effect for the control and management of food service revenues and expenditures.


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5. Local income is documented daily according to type of income (full priced meals, reduced priced meals, adult meals, a la carte sales, special milk program, Wisconsin morning milk program, etc.) and supported by daily cashier reports, cash register receipts, bank deposits, or other reports showing income received.

6. Employees responsible for handling money are bonded.

7. Money handled in the food service program is insured.

8. All invoices are verified before payment.

9. Claims for aid reimbursement are sent to the Department of Public Instruction as soon as practical following the month for which they are claimed to insure optimum cash flow and interest earnings.

H. Record Keeping

1. The food service program operates as a self-supporting entity on a non-profit basis.

2. Projections of revenue and expenditures are established prior to the start of the school year.

3. Financial statements are reviewed and compared monthly to the budget so potential financial problems may be dealt with in a timely manner.

4. Accurate accounting procedures are in effect for the control and management of food service revenues and expenditures.

5. Local income is documented daily according to type of income (full priced meals, reduced priced meals, adult meals, a la carte sales, special milk program, Wisconsin morning milk program, etc.) and supported by daily cashier reports, cash register receipts, bank deposits, or other reports showing income received.

6. Employees responsible for handling money are bonded.

7. Money handled in the food service program is insured.

8. All invoices are verified before payment.

9. Claims for aid reimbursement are sent to the Department of Public Instruction as soon as practical following the month for which they are claimed to insure optimum cash flow and interest earnings.

I. Record Keeping

a) Documentation on the reason for change in application status is on file.

1. Civil rights data is maintained in compliance with Title VI, Title IX, and Section 504 of the Civil Rights Act.

2. Monthly claims for reimbursement are sent to the Department of Public Instruction no later than 60 days after the last day of the month covered.


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3. Quarterly financial reports are submitted to the Department of Public Instruction no later than 60 days after the last day of the quarter covered.

4. Yearly Wisconsin Morning Milk program claims for reimbursement are sent to the Department of Public Instruction no later than 60 days after the close of the fiscal year.

5. Accurate records are maintained on a continuous basis for food service expenditures, revenues, and participation.

6. A system is maintained to record daily meal counts at the point of service.

7. Food production records are maintained.

8. The following participation records are maintained for historical progress comparisons:

a) Average Daily Participation.

b) Percent of Student Participation.

c) A la carte Meal Equivalents.

d) Adjusted Average Daily Participation.

e) Adjusted percent of Student Participation.

9. The following meal statistics are maintained for historical progress comparisons:

a) Meals served per labor hour.

b) Revenue per labor hour.

c) Revenue per customer served.

d) Meal counts by entrée served.

e) Pre-cost and post-cost of a menu.

f) Eligible vs. actual free and reduced price lunches served.

10. Daily records are kept by individual school as well as at the district level.

a) Facilities, Equipment, and Service Areas

11. A periodic evaluation of food service facilities and equipment is made.

12. Facilities and equipment are upgraded and/or replaced on a regular basis.

13. Food service equipment is maintained and operated in a safe and sanitary manner.

14. The dining area furniture is durable and easily cleaned.


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15. The dining area is furnished to provide the required amount of seating and designed to promote a safe and efficient traffic pattern.

16. The dining area:

a) Has acoustical provisions to reduce noise.

b) Has a proper amount of lighting.

c) Has a proper amount of ventilation.

d) Is clean, pleasant, and friendly.

e) The serving areas are designed to promote an efficient flow and minimal time in the service lines.

f) There is an adequate amount of time provided in the lunch period to serve students well.

J. Food Preparation

1. School meals follow prescribed dietary guidelines and established meal patterns.

2. Students with special dietary needs are accommodated within the constraints of the program.

3. A district policy is in effect that prohibits food sold in competition with the lunch program.

4. Proper preparation and presentation techniques are utilized to assure optimum nutrient content, food quality, and eye appeal.

5. The offer vs. serve concept is utilized to reduce plate waste and keep food cost down.

6. Standardized recipes have been developed.

7. Production records and meal counts (or historical meal patterns) are used to limit overproduction.

8. Minimum required portion size is served.

9. A la carte prices are charged for leftovers.

K. Purchasing and Receiving

1. The food service department utilizes cooperative purchasing whenever it is available and feasible.

2. The food service department utilizes government commodities to the fullest extent possible.

3. Bidding and price quotation procedures are established.

4. Specifications for food, supplies, and services are written for the attainment of optimum quality at the lowest possible price.

5. Awards are made to the bidder whose bid is most responsive to the invitation and is most advantageous to the district when price, service, and past performance are considered.


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6. Price discounts are taken rather than free promotional items.

7. Accurate records are kept of problems relating to a supplier's consistency of product quality and service.

8. Competitive bids and price quotations are kept on file for three years.

9. Items purchased are evaluated periodically by students and food service personnel to ensure that high quality standards and specifications are being met.

10. Delivery times and sites are specified to suppliers.

11. A receiving area is provided to properly receive food and supplies.

12. Receiving personnel are instructed on policies and procedures for receiving purchased items.

13. Delivery tickets are checked and signed by authorized personnel.

14. Invoice charges are compared to price quotations. Discrepancies are documented and corrected prior to payment.

15. Inventories are taken into consideration when determining quantities to order.

L. Storage and Inventory

1. Products are dated when placed in storage to ensure rotation of stock (first-in, first-out).

2. Storage areas are easily accessible to the kitchen and receiving area.

3. Storage areas are secure and access is limited to authorized personnel only.

4. Storage areas are neat, clean, and well organized.

5. Products are stored off the floor.

6. Storage areas are cool, dry, and well ventilated.

7. Chemicals are stored away from food products.

8. Freezer temperatures are maintained at 0 degrees Fahrenheit or below.

9. Cooler temperatures are maintained between 32 and 40 degrees Fahrenheit.

10. Physical inventories are taken on a predetermined time schedule.

11. Receiving and food service staff have been instructed on proper storage and inventory procedures.

M. Sanitation and Safety

1. Foods are visually examined before using to determine quality and freshness.


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2. Highly perishable foods are prepared as close to serving time as possible.

3. Hot foods are heated to and held at a temperature greater than 140 degrees Fahrenheit and cold foods are held at a temperature below 45 degrees Fahrenheit during transportation and/or serving.

4. Food service personnel practice good personal hygiene.

5. There are procedures in place to ensure adequate control of insects and rodents in the food service area.

6. All equipment meets government sanitation standards and is in good repair.

7. All food service personnel are aware of the proper procedures to follow in case of a fire within the food service area.

8. Floors, walls, and ceilings are in good repair.

9. Dish washing facilities maintain the correct per-rinse, wash, and final rinse water temperatures.

10. A regularly scheduled maintenance program is followed for the care of food service equipment.

N. Catering

1. The administration encourages the use of the food service department to provide products and services for both school and community groups.

2. All services are provided on a cost-plus basis.

3. A list of products and services is made available to school and community groups.

4. A policy is in effect prohibiting the use of food service facilities by commercial caterers.

5. A policy is in effect regulating the use of food service facilities by community groups.

O. Management Companies

1. The contract specifies that revenues may not accrue to the management company.

2. An advisory board comprised of parents, students, and staff has been established to assist in menu planning.

3. The district retains signature authority on monthly claims, application agreements, and free and reduced price meal applications.

4. State guidelines are followed in developing the management company contract.

5. The district has met all bid requirements relating to food service management contracts.


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II. FOOD SERVICE FINANCIAL MANAGEMENT

A. In view of the foregoing, the topic of food service financial management is well cov-ered in Solving The Money Mystery, a Handbook for School Food Service Managers, published in June 1993. This handbook addresses several components set forth below. They are:

1. Evaluating Your Program’s Revenues and Expenses

2. Merchandising Your Lunch Program

3. Strategies to Increasing Revenues

4. Points to Consider Before Raising Prices

5. Practices to Employ to Decrease Your Food, Labor, and Other Costs

6. Potential Roadblocks to Program Success

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REFERENCES

Solving the Money Mystery, a Handbook for School Food Service Managers in the National School Lunch Program, published in June 1993.


Handbook for School Business Officials, Illinois ASBO, 1990 Update.

Guide for Evaluating the Business Functions of a School District, New Jersey ASBO, 1975.

Boehrer, 10. (1993). Managing to meet the bottom line. School Business Affairs, 59(11), 3-8.

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CHAPTER 16

STATE FUNDING APPROACHES

INTRODUCTION

This chapter was originally written by Dr. Lloyd E. Frohreich, Retired Professor of Educational Administration at the University of Wisconsin – Madison, for the purpose of providing the reader with an introduction to some of the basic vocabulary and concepts that states use in providing funds to local school districts. This is not meant to be an exhaustive discussion. The reader is advised to refer to one of the many basic texts on school finance among the references to find a more comprehensive treatment of funding approaches.

States use a variety of methods to aid local districts. These methods vary according to constitu-tional provisions, state statutes, and perceived educational need. The result is that no two states fund education exactly the same. In the United States there are fifty different systems of funding education. These funding approaches range from the simple to the complex. However, there are commonalities in funding sources across states and these basic methods will be discussed in this chapter.

The first delineation that must be defined is the difference between basic support and categorical support.

Basic support aid is state aid that provides the majority of aid in most states. This aid is used to support the operating costs of school districts for the general education program of the district. Its general purpose is to address discrepancies among local districts in educational need and ability to finance education. The intention of basic support programs is to distribute aid in direct relation-ship to educational need and inversely to local ability to pay. Thus, the greater the perceived need, the more aid a district will receive, and the greater the ability of a district to finance education, the less aid it will receive compared to districts with less ability.

Categorical state aid is used to address special educational needs in local school districts. Categorical aid programs are used to address needs in such areas as transportation, special educa-tion, compensatory education, vocational education, capital outlay, sparsity, and to correct minor-ity imbalances. Generally, greater need and the more students in one of these programs results in more state aid. Categorical aid normally is distributed on a fixed dollar amount per unit of need. Local ability to pay is not taken into account. However, this does not have to be the case. Some states do incorporate local fiscal capacity measures into some of their categorical aid programs to account for differences in school district ability to pay.

Most of the remainder of this chapter will be devoted to a discussion of how states distribute basic support aid that incorporates provisions for considering local ability to pay. State basic support programs can be broadly placed in five categories: flat grants, foundation programs, percentage equalizing, guaranteed tax base on guaranteed tax yield programs, and full state funding programs. According to a recent survey, two states had flat grant programs, 38 states had founda-tion programs, six states had percentage specialization programs, two states had guaranteed tax

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base/yield programs and two states used full state funding. This chapter will not discuss the indi-vidual characteristics of each state but will discuss how each funding mechanism operates.

I. FUNDING VARIABLES

There are two basic funding variables and a variety of ways these are measured. The two funding variables are educational need and ability to pay. The combination of these two variables determines local fiscal capacity. Generally fiscal capacity is expressed as a dis-trict’s fiscal resources or tax base divided by a measure of the district’s need for those resources.

A. Educational Need

Educational need can be defined as the demand placed upon a district’s resources available to fund education. Normally this demand is related to the number of pupils in a school district, the cost of educating different groups of students, and other cost fac-tors that are beyond the control of the district.

The most common method of measuring the educational need of a district is through pupil counts. States use three types of pupil counts: Average Daily Attendance (ADA), Average Daily Membership (ADM), and Enrollment (ENR). ADA is determined by averaging a district’s total daily attendance over a particular time period or over a few selected attendance days. ADM is determined by averaging a district’s enrollment over a particular time period or over a few selected school days. ENR is calculated by counting a district’s total enrollment on a single day. Some states use previous year pupil counts and some states use current year pupil counts to determine their educa-tional need component in the state aid formula. Most school finance authorities agree that ADM is the best measure of educational need because it counts the number of stu-dents who need educational programs. ADA is subject to the vagaries of attendance and health problems.

Many states allow local districts to weight the pupil counts according to the special needs of students. For example, many states allow special education students or com-pensatory students to be counted as more than one depending on the nature and cost to educate a particular student. These states include a weighted ADM (WADM) or weighted ADA (WADA) in the basic state aid formula. A total of 39 states use some type of weighing procedure in the calculation of pupil units.

A less common method of measuring educational need is the use of teacher units, classroom units, or instructional units. However, the number of these units generally is based on the district’s ADA, ADM, or ENR count. According to a survey of states, 21 states use ADM, 11 states use ENR, 9 states use ADA, and 9 states use teacher or instructional units.

In recognition of the varying circumstances that affect a district’s cost of educating students, many states allow for special adjustments in the basic state aid formula. For example, states may provide more aid to districts that are isolated (sparsity factor), smaller districts, urban districts, and districts that are growing rapidly or declining in enrollment, districts with municipal overburden, and districts that are located in high

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cost of living areas. The extent of these adjustments in state aid formulas varies greatly across the United States.

B. Ability to Pay

The other primary variable used in determining basic state aid is a district’s ability to pay. The most common fiscal measure of ability to pay is a district’s property valuation normally expressed as assessed valuation or equalized assessed valuation (Wisconsin). School districts in some states have access to other revenue such as a local income tax, a local sales tax, vehicle excise tax, mobile home fees, and user fees. Combined with property value, these form the pool of resources available to local districts to fund education.

Most states take into account a local district’s ability to pay when its basic state aid is determined. The district’s ability to pay or wealth factor generally is its equalized assessed value or a combination of district wealth factors that were mentioned above. Currently, 24 states use property valuation as the single measure of district wealth, 10 states use property valuation plus other revenue sources, 8 states use property valua-tion and personal income, and 5 states use property valuation, personal income and other revenue sources. When multiple wealth sources are used, there is a great variety of methods used to determine the share each revenue source contributes to the overall wealth measure applied to the basic state aid formula.

II. JUDGING BASIC STATE AID FORMULAS

There are several ways of judging the merits of state aid formulas and these criteria are used by finance experts, policy analysts, legislators, school officials, taxpayers, and others to judge the effects of formulas on school districts. It is important to recognize that two people from different positions may judge a formula in an entirely different way using the same criteria. How one views the effects of a formula often is a function of which side of a position one is located, e.g. taxpayer or school official. People also differ on how the fol-lowing criteria are defined. What constitutes equity or equality in the judgment of one per-son may be totally different for another person.

A. Equity

The concept of equity can be divided into a number of areas and requires answers to a number of questions. What resources or services should be distributed equitably among the targeted group? The typical answer is that dollars or revenues should be distributed equitably among children. This may also imply that processes, programs, and delivery systems also should be distributed equitably. For whom should school finance be equitable? There are two major groups to consider: students and taxpayers. The equity considerations for each group are quite different. Students are concerned with equal access to revenues and school resources. Taxpayers are concerned with the equity of the tax system that produces school revenues.

A third question is concerned with how equity is to be defined. There are four equity principles that must be considered.

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(1) Horizontal equity relates to how individuals of equal position and circumstances are to be treated. The equal treatment of equals has been an enduring principle of school finance and taxation for many years.

(2) Vertical equity refers to the relative treatment of unequals. How are the differences among individuals in a group to be recognized and how are resources to be distrib-uted to those individuals?

(3) Equal opportunity or fiscal neutrality is the third component of equity. Fiscal neu-trality suggests that wealth, individual differences or circumstances should not be related to access to educational resources. That is, every district or child should have access to the same level of resources or services regardless of their wealth or where they live in the state.

(4) Effectiveness is the fourth component of equity. Effectiveness assesses the degree to which resources are used in ways which research has shown to be effective. Resource inequities exist not only when insufficient resources are available, but when resources are not used in ways that produce desired impacts on student performance.

A fourth question that must be asked is how much equity is in the system or the spe-cific status of equity? The answer to this question requires the use of statistical proce-dures that are beyond the scope of this chapter. To measure horizontal equity, one may use such measures as the range, restricted range, federal range ratio, coefficient of variation, Gini coefficient, or the McLoone index. To measure fiscal neutrality, the use of correlation coefficients and regression elasticity are appropriate. The reader is advised to consult a recent edition of school finance texts for a discussion of these methods.

B. Liberty

A more recent concept used to judge state finance formulae is liberty. Liberty refers to the freedom which local districts have to define their own programs and serve their own students’ needs. If state aid programs, either through the lack of sufficient aid or through the overly prescriptive provisions in state support programs, inhibit or distort local decision making, then the aid program is said to be a violation of the principle of liberty. It is evident that this principle may be in opposition to concepts of equity or the idea that education is a state function and the state must set standards and prescribe certain controls to maintain those standards. State imposition of cost controls is a good example of a violation of the principle of liberty.

C. Adequacy

The concept of adequacy is receiving more attention in school finance literature and among school finance experts. To date, this criterion has been applied mostly to school inputs or school resources and whether they are equal or sufficient in terms of need and ability to pay. A more recent contention is that not only must inputs be adequate, but their adequacy must be judged on the basis of whether they are sufficient for some purpose, such as school achievement. In other words, are there adequate resources that allow students to achieve at some desired level. The change in focus has shifted from judging the adequacy of inputs to judging adequacy according to outputs.

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Although we see adequacy of outputs as an important concept, we cannot judge the following formula on this criterion because we have no way of determining or setting achievement or performance standards and relating those outputs to resources. States and local school districts must necessarily determine their own achievement goals and judge whether there are sufficient resources available to meet those goals.

III. STATE AID FORMULAS

Basic state support mechanisms may be divided conveniently into three broad categories: flat grants, equalization grants, and full state funding. Equalization grants may be further categorized into minimum foundation, guaranteed tax base/yield, percentage equalization, power equalization, and combinations of the above. These state support systems will be discussed and some examples will be provided using a hypothetical set of 12 school districts.

A. Flat Grants

One of the earliest forms of state aid was the flat grant and although it has been dis-credited by school finance for being disequalizing, it is still used by two states to dis-tribute basic state aid and by many states to distribute categorical aid. A flat grant can be defined as a fixed sum of money or resources distributed to local school districts without concern for a local share or the ability of local districts to pay for the services it funds.

The formula for the flat grant may be stated as follows:

SA1 = F N1

Where:

SA1 = The dollar value of the state’s grant to the ith district;

F = The dollar amount to be paid for each student or unit;

N1 = The number of pupils or units in the ith district.

For example, if the dollar amount per pupil or unit was $3,000 and the number of pupils was 1,000, this district would receive $3,000,000. Districts having the same unit count would receive the same amount of state aid regardless of the district’s ability to pay for education. Flat grants do not address differences in local fiscal capacity among districts. Flat grants can address educational need by using a weighting procedure in the determination of unit count. For example, weighting special education students more than regular students would give more aid to districts with more special students.

For the most part flat grant systems are considered to be in violation of most equity measures, fiscal neutrality, and liberty unless the grant covers the full cost of the pro-gram in each district.

Table I shows the results of a flat grant of $3,000 per student distributed to each of 12 school districts. Notice that District E, which wants to spend $7,000, must levy 40 mills, or four times as much as District H which wishes to spend the same amount. The

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reason is that District H has four times the wealth as District E. This table illustrates the serious inequities that result from a flat grant system of distributing state funds.

B. Foundation Grants

Foundation grants or minimum foundation programs as they are sometimes called, are the most widely used form of grant system in the United States. Currently, 38 states use some form of a foundation grant. Foundation grants may be further categorized into those state systems that require a minimum local tax rate (23 states) and those states in which a mandatory local tax effort is not required (15 states). In some states the local effort is mandatory and districts are required to have a tax rate no lower than a state prescribed level in order to participate in the program. In other states districts are free to determine their own tax rates. Foundation programs provide each school district with a level of funding necessary to guarantee each of the district’s pupils access to a minimum level of educational services in terms of dollars per pupil as pre-scribed by the state. Foundation programs incorporate a measure of local wealth, usually property value, into the formula.

Local fiscal capacity or wealth is not used in flat grant programs. The wealth measure establishes an inverse relationship between a district’s ability to pay and the amount of state foundation aid. Like flat grants, foundation grants may also take into account a district’s educational need by using weighting procedures for students and programs with more need.

Table IIllustration of a State Using

A Flat Grant Formula

DistrictExpenditure

per pupilProperty

value per pupilState aid per

pupil

Localrevenue

per pupil

Property taxrate in mills

A $5,000 $100,000 $3,000 $2,000 20.00

B 5,000 200,000 3,000 2,000 10.00

C 5,000 300,000 3,000 2,000 6.67

D 5,000 400,000 3,000 2,000 5.00

E 7,000 100,000 3,000 4,000 40.00

F 7,000 200,000 3,000 4,000 20.00

G 7,000 300,000 3,000 4,000 13.33

H 7,000 400,000 3,000 4,000 10.00

I 9,000 100,000 3,000 6,000 60.00

J 9,000 200,000 3,000 6,000 30.00

K 9,000 300,000 3,000 6,000 20.00

L 9,000 400,000 3,000 6,000 15.00

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The formula for a foundation grant program may be expressed as follows:

SA1 = (N1 U) - (r W1)

Where:

SA1 =The dollar value of the state’s grant to the ith district;

N1 = the number of pupils in the ith district (weighted or unweighted);

U = the foundation level;

r = the common tax rate established by the state or local district;

W1 = the total value of the ith district’s tax base.

Let’s assume the foundation level is $5,000, the district’s property value is $200,000 and state’s mandatory tax rate is 5 mills. The district will raise $1,000 (5 mills X $200,000) and the state will provide the difference between the foundation level ($5,000) and the local contribution (1,000) or $4,000. If the state’s required tax rate was 10 mills, the district would provide $2,000 and the state would provide $3,000. If the district’s expenditure level was $5,000, no further local contribution or tax effort would be required.

Table II illustrates a hypothetical state with 12 districts in which the state has set the foundation level at $5,000 and requires a local tax effort of 10 mills. It may be observed in this table that if districts are spending at the foundation level ($5,000) tax equity is being achieved. Each of those districts wants to spend $5,000 and the required local effort of 10 mills in each district plus the state aid is providing the nec-essary funds to support the local program with the same local tax rate.

However, it is a different story if districts want to spend more than the foundation level provides. Notice that District E must levy an additional 20 mills above the required rate of 10 mills to spend $7,000, while District H need only levy an additional 5 mills to raise the same amount. This example addresses a major problem of equity that most states face when they set the foundation level too low to cover most of the costs of local districts. If the foundation level had been set at $7,000 then those districts spend-ing $7,000 would only be required to levy the required rate of 10 mills and the state would provide the balance. Thus, fiscal equity would be achieved with a 10 mill levy up to $7,000.

Another major problem with foundation grants is that expenditure level is not related to the required local tax rate up to the foundation level. If the foundation level was $7,000, the required local tax rate stays the same regardless of the district’s expendi-ture level up to $7,000. Most finance experts agree that if a district spends more rela-tive to another district then its tax burden also should be higher.

C. Guaranteed Tax Base and Yield Programs

Guaranteed tax base (GTB) and guaranteed tax yield (GTY) are very similar in that the state provides matching funds based on the level of local tax effort and the amount of revenues generated by that effort. Both the GTB and GTY programs guarantee the

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school district a given amount of revenue per pupil for a given tax effort. GTB pro-grams attempt to equalize district ability to pay by guaranteeing a certain level of prop-erty value per pupil for all districts. States may set the guaranteed level at any amount, and, in principle, this is how they control the level of state support.

In determining the tax rate necessary to raise its budget, the school district would use the state guaranteed property value per pupil. The district would apply this tax rate to its actual property value per pupil and the state will compensate the district for the dif-ference between the actual revenue raised and the amount that would be raised at the state guaranteed property value.

The formula for a state GTB program may be stated as follows:

SA1 = (Vs - V1)r1

Where:

SA1 = the dollar value of the state’s aid to the ith district;

Vs = the state guaranteed property tax base per pupil;

V1 = the property tax base per pupil in the ith district;

r1 = the locally determined tax rate in the ith district.

Table IIIllustration of a State Using a Foundation Level of $5,000

with a Required Local Tax Rate of 10 mills

DistrictExpenditure

perpupil

Propertyvalue

per pupil

LocalResources

fromrequired

rate

StateAid

Additional local

revenue needed

Additionalmillage

rateneeded

Totalmillage

rate

A $5,000 $100,000 $1,000 $4,000 $0 0 10.00

B 5,000 200,000 2,000 3,000 0 0 10.00

C 5,000 300,000 3,000 2,000 0 0 10.00

D 5,000 400,000 4,000 1,000 0 0 10.00

E 7,000 100,000 1,000 4,000 2,000 20.00 30.00

F 7,000 200,000 2,000 3,000 2,000 10.00 20.00

G 7,000 300,000 3,000 2,000 2,000 6.67 16.67

H 7,000 400,000 4,000 1,000 2,000 5.00 15.00

I 9,000 100,000 1,000 4,000 4,000 40.00 50.00

J 9,000 200,000 2,000 3,000 4,000 20.00 30.00

K 9,000 300,000 3,000 2,000 4,000 13.33 23.33

L 9,000 400,000 4,000 1,000 4,000 10.00 20.00

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For example, if the state guaranteed property value per pupil was $300,000, the local property value per pupil was $100,000, and the locally determined tax rate was 16.67 mills, then ($300,000 - $100,000) (.01667) would produce $3,333 in state support per pupil. The equalizing effect of GTB programs depends on the guaranteed level of property value per pupil. The higher the guaranteed level, the greater the equalizing effect. However, the cost to the state also rises as the guaranteed level increases.

Table III is an illustration of a state that uses a guaranteed tax base formula and guar-antees $300,000 per pupil. The guaranteed tax base formula has the same basic charac-teristics as the Wisconsin formula. The difference is that Wisconsin uses a two-tiered approach: one guarantee level for a primary cost ceiling and another guaranteed level for dollars expended above the ceiling. The effect is to reduce the state’s percentage reimbursement for expenditures above the primary cost.

The following principles apply to the GTB program.

1. Districts that spend the same amount and are below the state’s guaranteed value will have the same local tax rate effort.

2. Districts whose property wealth is the same, yet below the state guaranteed value, will receive the same percentage of state aid.

3. Districts choosing to spend more will have a higher local tax rate and tax effort.

The problems with a GTB program are as follows:

1. Critics argue that districts who choose to spend more will receive more state dollars. It should be noted, however, that the percentage reimbursement stays the same if districts are below the state guaranteed level and are at the same wealth level.

2. Equalization stops at the guaranteed level. This may be observed in Table III for districts D, H and L. Those districts, wishing to spend $5,000, $7,000, and $9,000 respectively will have lower tax rates of 12.5 mills, 17.5 mills, and 22.5 mills, respectively. These mill rates are much less than for districts that want to spend equal amounts. Thus, taxpayers in the high wealth districts have a tax advantage over taxpayers in districts, which want to spend equivalent amounts on education.

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D. Percentage Equalization Programs

Like the guaranteed tax base/yield programs, the percentage equalization program allows local districts to decide the level spending and provides aid based on a philoso-phy of equal access to educational funding. The state also will match the percentage of the funds raised by the school district based on the fiscal capacity of that district. Both of these programs are sometimes called district power equalizing formulas since their primary concern is with the equalization of the local districts’ ability to raise revenue. In practice, these grant programs achieve their objective but do not equalize per pupil spending, if that is a state objective. School districts with above-average tax bases may simply impose higher tax rates to spend more than districts with below average tax bases. Without power (or perfect) equalization, wealthier school districts are able to tax at a lower rate and yet spend more than their less wealthy counterparts.

Percentage equalization grants take the following form:

AR1 = 1-(FW1/Ws)

Where:

AR1 = The aid ratio to the ith school district;

F = a scaling coefficient equivalent to the local share of the grant program;

Table IIIIllustration of a State Using a Guaranteed

Tax Base Formula with the Guarantee Set at $300,000 Per Pupil

DistrictExpenditure

per pupil

Propertyvalue per

pupil

State aidper pupil

LocalRevenue per

pupil

TotalMillage

rate

A $5,000 $100,000 $3,333 $1,667 16.67

B 5,000 200,000 1,667 3,333 16.67

C 5,000 300,000 0 5,000 16.67

D 5,000 400,000 0 5,000 12.50

E 7,000 100,000 4,667 2,333 23.33

F 7,000 200,000 2,333 4,667 23.33

G 7,000 300,000 0 7,000 23.33

H 7,000 400,000 0 7,000 17.50

I 9,000 100,000 6,000 3,000 30.00

J 9,000 200,000 3,000 6,000 30.00

K 9,000 300,000 0 9,000 30.00

L 9,000 400,000 0 9,000 22.50

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= a measure of the local fiscal capacity for the ith district;

= an arbitrary measure of fiscal capacity set by the state for this formula.

The state sets the aid ratio, the scaling coefficient, and the arbitrary measure of fiscal capacity. The school district determines its expenditure level and the local fiscal capac-ity is determined by existing wealth measures. For example, if the aid ratio was set at .6, the state would match 60% of the locally raised school revenue obtained by multi-plying the wealth ratio by .4 (40%) and subtracting the result from one. If the wealth ratio was $200,000/$300,000 or .66 7, then .4 X .667 would provide 1 - .2668 or .733 (73.3%) state aid. If the wealth ratio was $300,000/$300,000 on 1.0, the state would provide exactly .6 or 60%. Districts with less than $300,000 in fiscal capacity would get more than 60% of their expenditures paid by the state. Districts with more than $300,000 in fiscal capacity would get less than 60% of their expenditures paid by the state.

The amount of state aid a district receives is determined as follows:

SA1 = AR1 E1 N1

Where:

SA1 = The dollar value of the state’s grant to the ith district;

AR1 = the aid ratio in the ith district;

E1 = the per pupil expenditure in the ith district;

N1 = the number of pupils in the ith district (weighted or unweighted).

For example, if the aid ratio is determined to be .6 (60%) and the district expenditure level is set at $7,000, then the state would provide 60% x $7,000 or $4,200. The local district would need to raise $2,800.

In practice, states seldom allow local districts to spend without limiting the state share. In those cases, the above formula is adjusted and the state substitutes its own spending ceiling for the local expenditure level. If a spending ceiling is used in the formula, the result is exactly the same as one would get by using a guaranteed tax base/yield for-mula with a guarantee limit set by the state.

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Table IV provides an illustration of 12 hypothetical districts in a state that has chosen to use a percentage equalizing formula. The level of state support has been set at 50% and the state determined fiscal capacity is $400,000 and equal to that of the wealthiest school district.

It may be seen in this set of districts that the state formula provides for perfect fiscal effort equalization. Districts that wish to spend the same amount will have equal local tax rates and the state will provide the same percentage of state aid to those districts that have the same fiscal capacity regardless of what they choose to spend.

Critics of the percentage equalizing problem argue that no limit on spending will encourage districts to spend more. Like the GTB/Y formula, the more districts increase local spending, the more a state must increase its aid to local districts. The practical result of this is that of the six states that use the percentage equalizing formula, all have placed limits on spending and/or the state determined fiscal capacity measure.

Table IVIllustration of a State Using a Percentage Equalizing Formula

with the State Share Set at 50% and the State FiscalCapacity Limit Set at $400,000 Per Pupil

District Expenditureper pupil

Property valueper pupil

State aidper pupil

Localrevenueper pupil

Totalmillage

rate

A $5,000 $100,000 $4,375 $ 625 6.25

B 5,000 200,000 3,750 1,250 6.25

C 5,000 300,000 3,125 1,875 6.25

D 5,000 400,000 2,500 2,500 6.25

E 7,000 100,000 6,125 875 8.75

F 7,000 200,000 5,250 1,750 8.75

G 7,000 300,000 4,375 2,625 8.75

H 7,000 400,000 3,500 3,500 8.75

I 9,000 100,000 7,875 1,125 11.25

J 9,000 200,000 6,750 2,250 11.25

K 9,000 300,000 5,625 3,375 11.25

L 9,000 400,000 4,500 4,500 11.25

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E. Full State Funding Program

The last form of general state aid that will be discussed is full state funding (FSF). There is only one state that may be classified as having full state funding (Hawaii). With FSF, all educational funds are raised by statewide taxes and all revenues are sent to the state for payment to local districts. Local school districts normally operate under an approved program basis. That is, the local district determines its own budget and the revenues needed to operate its programs and submits that to the state for approval. Local district budgets are approved as submitted or adjusted by the state.

FSF has never been politically attractive because it relinquishes a great deal of local control and transfers determination of educational standards and what constitutes acceptable local need to the state. Another disadvantage is the perceived need for a larger state bureaucracy to evaluate and determine local district budgets and expendi-ture needs. FSF works in Hawaii because it has an historical basis and because the state need only approve seven school district budgets. Many states have several hun-dred school districts.

Nevertheless, FSF is based on a determination of local district need so each district is treated as a unique entity. Furthermore, each district and child has access to the total fiscal capacity and resources of the state. For these reasons, FSF is considered to be the best formula for satisfying the concepts of fiscal equity, neutrality, and equality of edu-cational opportunity.

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REFERENCES

American Education Finance Association (1992). Public School Finance Programs of the United States and Canada; 1990-1991. Albany, NY: The Nelson A. Rockefeller Institute of Government, State University of New York.

Berne, Dr. Robert, Trends in Education Equity: A Movement to the School Level, School Business Affairs, August 1995.

Burrup, P.E., V. Brimley, Jr., and R.R. Garfield (1993). Financing Education in a Climate of Change. Boston, MA: Allyn and Bacon.

Monk, D.H. (1990). Educational Finance: An Economic Approach. New York: McGraw Hill.

Delon, Floyd G., Missouri v. Jenkins: Resurrecting Local Control, School Business Affairs, April 1998.

DeMitchell, Todd A., School Finance Reform: The Carousel Reform, School Business Affairs, January 1999.

Herbert, Dr. Linda, Right Game, Wrong Field? The Pursuit of School Funding Equity, School Business Affairs, August 1995.

Hess, G. Alfred, School-Based Finance: An Equity Solution for Urban Schools, School Business Affairs, August 1995.

Odden, A.R. and L.O. Picus (1992). School Finance: A Policy Perspective. New York: McGraw Hill.

Parrish, Thomas B., What Is Fair? Special Education and Finance Equity, School Business Affairs, August 1995.

Picus, Dr. Lawrence O., Rethinking Equity—There Are Alternatives, School Business Affairs, April 1998.

Picus, Dr. Lawrence O., Defining Adequacy: Implications for School business Officials, School Business Affairs, January 1999.

Polansky, Dr. Harvey B., Equity and SBM: It Can Be Done, School Business Affairs, August 1995.

Polansky, Dr. Harvey B., Homogeneous v. Heterogeneous: Is Tracking a Barrier to Equity, School Business Affairs, August 1995.

Prouix, Raymond J. and Jimerson, Lorna, Business as Usual? Not in Vermont, School Business Affairs, April 1998.

Thompson, D.C., R.C. Wood and D.S. Honeyman (1994). Fiscal Leadership for Schools: Concepts and Practices. New York: Longman.

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CHAPTER 17

COMPUTER-AIDED FACILITIES MANAGEMENT

INTRODUCTION

When it comes to sites and facilities management, creativity and innovation are less important than proactive thinking. But creativity and innovation cannot be forgotten because they are pre-cisely the reasons that the job of sites and facilities manager promises to become increasingly more efficient and productive.

The needs of educational-defined space are evolving as rapidly as our existing construction is dilapidating. Effective facilities management considers today’s tasks and tomorrow’s endeavors. Historically, information gathering took the forms of blueprints, paper correspondence, photographs and other artifacts of significance. This manual system results in disarray. Furthermore, interpreting data from different sources requires precious time and patience not often afforded in the arena within which we practice.

Today the most versatile computerized facilities management system combines the information gathering into a single source. With this comes organization and eventual simplicity. Computer technology offers facilities management an effective tool for compiling, sorting and reporting site and building information and maintenance activity. Fortunately, both the manager’s time and the consultants’ time is conserved which helps to justify the cost of the investment.

Computerized facilities management encompasses varied philosophies of manufacturers as well as differences in their product lines. Companies can be quite diverse in their offerings. This chap-ter does not emphasize proprietary goods nor the differences in philosophy in order to preserve individuality and personality in choice. It attempts to reference what facilities managers should consider essential elements in setting up a computerized facilities management system. This chapter emphasizes benefits, positive traits, computer system requirements, prioritizing needs, elements of computerized facilities management and extensions of capabilities.

I. DEFINITON – WHAT IS CAFM?

A. CAFM stands for Computer-Aided Facilities Management. CAFM is a tool designed to computerize the process of buildings and grounds maintenance tracking and planning. It also enables the manager to access and organize the information that is critical in managing district assets.

B. CAFM provides information fast. Information supplied by computerized management is as general or specific as need be. Query data such as staff records; building inventory; equipment statistics; parts, supplies, and furniture inventory; task standards and descriptions; work order types; preventive maintenance schedules, and sites and facilities physical boundaries are examples of information which CAFM can generate. From this data correlations can be formed to produce an almost endless array of facts and functions.

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C. CAFM is an enticing technology offering an opportunity to enhance a district’s facility management operation.

II. BENEFITS

A. It seems to be the consensus that the greatest benefit CAFM offers is its ability to pro-vide more control of select maintenance operations. When valuable bits of informa-tion are combined in a manner in which their relative importance is understood, functions are more apt to be adjusted optimally for the benefit of the total operation.

B. Scheduling and assigning are the key means of relating maintenance function to facili-ties data. Establishing schedules and assignments creates the standards for comparison, or control, and CAFM provides the impetus. Scheduling and assigning utilize site, building, staff, task, and inventory information. With this information at a single source, the management of such information is most expedient.

C. Convenience is commonplace in, but is not always synonymous with, computerized management. Whether it is word processing, spreadsheets, business accounting, or maintenance management, computer technology is most advantageous when its worth can be realized in the form of increased productivity.

D. The user and end-user receive the benefits of increased productivity by using CAFM. The user expedites the task of scheduling and making assignments by incorporating the pertinent information from a single source rather than from various sources. The end-user, or the person to whom the task is assigned, works more effectively because of the wealth of information supplied to him initially. Another way the user benefits is by differentiating between routing and task-specific work orders and allowing CAFM to correlate schedules and assignments. Following regular procedures (i.e., preventive maintenance) is one form of making optimal use of CAFM.

E. It is worth mentioning here from an informational-resource viewpoint that the entire district benefits from the facts compiled by CAFM (summaries, reports, illustrations, planning, etc.). The end-users also include vendors, consultants, and the general public. CAFM generates accurate reports on virtually any topic for which there exists correlating data.

F. Furthermore, by implementing CAFM as a databank, one has ensured greater accuracy of data as a result of the controlled environment in which it is contained. Updates are simple and quick.

G. Last but not least, CAFM promotes teamwork. From initiation through daily operation, information giving and gathering unites administrators, teachers, and main-tenance staff. During the process of implementation, data entry is preceded by verifi-cation of information gathered in numerous forms. From this information-sharing comes the satisfaction of being a part of the effort and the recognition of favorable innovation. Again, CAFM serves different people in different ways.

III. CHARACTERISTICS

CAFM should include the following positive traits:

A. Modular design

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B. Networkable

C. Optional customization

D. Apparent user network

E. Manufacturer commitment to service and support

F. Link to computer-aided design/drafting (CADD)

When choosing to introduce CAFM to the buildings and grounds department, time and money are likely the overriding factors for consideration. By phasing-in capital improve-ment projects rather than deferring them, tasks are accomplished constructively because time and money are used effectively. Phasing-in the adoption of CAFM is similar in this regard and likely the wisest decision that can be made. To do this, first prioritize needs and wants considering the service CAFM provides. Is work order management of top concern? Is building information management? Employee/Staff information? How much time will it take to attain and then input this data? Be prepared. To implement any com-puter program will require time and expense. It should stand to reason, then, that the pro-gram’s structure should allow it to grow at a rate consistent with demands. Modular design in software exists and should be highly regarded. Don’t be overwhelmed by the demands of the software.

As the CAFM program takes hold, multiple users will likely require its services. Whether the users be departmental support staff or remote building contacts, the program should allow you the option to interconnect with them. This is a good time to consult the dis-trict’s Management of Information Systems (MIS) Specialist. That person is knowledge-able about networkability of the system and how its requirements fit in with the district’s goals and objectives.

The ability to customize the program is vital, since no two school districts operate alike. Though, realistically, the need does not present itself often, embellishments may be neces-sary to provide tailored reports and other presentation material. Furthermore, it is a rarity that software is suited to a particular need, and its off-the-shelf style often does nothing to promote enthusiasm for its use.

The possible accomplishments of CAFM may foster communication between other users of the program resulting in efficiency and progress and the development of a strong user network. Tap into it for the best results. Learn more about how CAFM can be applied to different facilities and operations.

Perhaps the most important link in the users network is the CAFM program manufacturer. Commitment to service and ongoing support is crucial. Investigate the track record of the manufacturer and be convinced that your relationship is amicable and long-term.

Finally, one of the leading innovations in document preparation, CADD (Computer-Aided Design and Drafting), can facilitate the consolidation of the graphical and text forms of information management. Since its introduction during the 1980s, CADD has emerged as one of the next-generation graphics standards. It is likely that most drafted documents from vendors and consultants will take this form. The information is swiftly transferred to wherever its use can be justified, including CAFM. CADD-interfaced CAFM is a very

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wise option which separates those software packages with the greater potential from those with lesser potential. More will be said of this option, and CADD, later in this chapter.

IV. ELEMENTS OF CAFM

There are attributes of most computerized facilities management systems that are usually consistent between manufacturers and should be regarded as minimum requirements for the successful implementation and application of a new program. It is vital to prioritize information needs so that the effects of CAFM are realized swiftly and with minimal disruption. The following is a list of common CAFM inclusions:

A. Information

1. Building

2. Floor

3. Room

4. Division

5. Department

6. Employee

7. Vendor

8. Equipment

B. Inventory – Parts

1. Understock

2. Vendor

C. Work Order

1. Types (Correct, Install, Move, Preventive Maintenance, Routine Housekeeping)

2. By Location

3. By Equipment

4. By Employee

5. By Requestor

6. By Priority

7. By Assignment Date

8. By Completion Date

D. Preventive Maintenance

1. Tasks

a) Standards

b) Descriptions

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2. Task Types

a) Housekeeping

b) Equipment

3. Forecast/Schedule

4. Parts Usage by Equipment

E. Equipment and Employee Management

1. Equipment Maintenance – History

2. Equipment Down Time

3. Employee Workload

4. Employee Performance

F. Move Order

1. Department/Employee

2. Equipment

3. Furniture

G. Daily Tasks

1. Standards

2. Descriptions

3. By Location

4. By Employee

5. Equipment Requirements

6. Parts usage

7. Costs

a) By Location

b) By Department

H. Space Management

1. Forecast – growth

2. Allocation – standards

V. SYSTEM REQUIREMETNS

CAFM programs may be run under DOS (Disk Operating System) or a UNIX system. The operating system chosen will be determined by your existing computer environment. Consult the District’s MIS specialist before embarking on the program.

Most reputable CAFM programs will be PC-based (personal computer) and this allows for economizing on the up-front expense of implementation. Certain enhancements of exist-

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ing hardware may accommodate the program of choice. Be comfortable phasing-in the start up. Again, phasing-in CAFM allows for purchasing according to priorities, whereas a total system purchase may be cost prohibitive.

Some DOS system hardware and software minimum requirements might include the following:

A. IBM compatible 386 or higher

B. 2 Megabytes extended memory

C. 4 Megabytes free disk space

D. Math co-processor

E. MS-DOS® Version 4.01 or higher

F. Mouse or digitizing tablet

G. Monochrome or EGA Monitor

VI. CADD TECHNOLOGY

A. It was previously mentioned that CADD technology is a tool for managing documentation. The process by which standard documents are prepared for use with or by CADD is known as “automating.” Automating documents can be performed by scanning or manual translation (digitizing). These methods are services rendered by vendors and consultants. Typically, scanning a school floor plan will cost approxi-mately three-to-five cents per square foot of building area. The more detail added, the greater the associated costs. Manual translation of drawings is more time consuming and, thus, more expensive generally exceeding ten cents per square foot.

B. The result of automating a drawing is a computerized version capable of being inter-preted and manipulated electronically. Technology has now permitted graphics lan-guage to interface with text language. This “bridge” allows for interrelating information-management styles (databases) pictorially.

C. Document archiving is a smart means of managing and preserving your new and/or existing paper-based documents; CAFM is enhanced by its presence. CADD technol-ogy will continue to play a vital role in information-sharing well into the future.

VII. CONCLUSION

A. This chapter has introduced the concept of computerized sites and facilities mainte-nance management. As managers, the potential of realizing increased productivity, greater operation control, and teamwork is enticing. Many characteristics help define the usefulness of CAFM products. The diversity of options proves to be a challenge during the selection process. Hopefully through this chapter some insights into special features has been gained to permit continual growth in operational efficiency as long as computerized facilities management remains in effect.

B. Prioritize operational needs before selecting maintenance management software. It is likely a product exists that is suitable from the start. Examine the district’s existing

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computer hardware to determine if it has the capability to accommodate a CAFM system. If so, this could maximize the hardware’s usefulness.

C. Computerized facilities management systems are comprehensive tools of the trade. Sites and facilities managers can regard this affordable technology as a big step toward improved organization and efficiency.

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REFERENCES

ARCHIBUS/FM Building Operations Management. Archibus, Inc., Jung/Brannen Research & Development Corporation, Boston, MA, 1993.

AutoCAD rel. 12, Autodesk, Inc., Sausalito, CA, 1992.

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CHAPTER 18

SCHOOL ACCOUNTING

INTRODUCTION

Government, whether federal, state, or local are created to protect and serve the needs of their citizens. To help ensure that the financial resources collected by any government are used for the purpose that was intended by the citizens, other legislative bodies, and creditors the Governmental Accounting Standards Board (GASB) was established. GASB has the responsibility to create gen-erally accepted accounting principles (GAAP) for governments.

One of the basic principles in GAAP is fund accounting. Fund accounting is a fiscal and account-ing entity that records assets, liabilities, and residual equities and the changes that occur in those groups which are segregated for the purpose of carrying on special activities. In governmental accounting, which includes school districts, there are four types of funds. They are governmental funds, proprietary funds, fiduciary funds, and special revenue funds.

I. GOVERNMENTAL FUNDS

Governmental funds are further broken down into four classifications. These are the Gen-eral Fund, Special Revenue Fund, Capital Projects Fund, and Debt Service Fund. The General Fund (Fund 10) accounts for all financial resources not specifically required in another fund. The Special Revenue Fund accounts for revenue sources where the expendi-tures of those resources has specific purposes (Fund 20). Capital Projects Fund is to record financial resources used to acquire or construct major capital facilities (Fund 40). Finally, the Debt Service Fund is to account for the receipt of resources and the payment of those resources on the long-term debt principal and interest payments of the governmental unit (Fund 30).

II. PROPRIETARY FUNDS

Proprietary funds are made up of Enterprise Funds and Internal Service Funds. Enterprise Funds account for operations that are run similar to private business enterprises in which revenue collected through fee or user charge should at least equal the expenses of provid-ing the goods or service. In Wisconsin, Fund 50-Food Service is not considered a propri-etary fund.

Internal Service Funds are used to account for services or goods provided by one depart-ment to other departments within the governmental unit.

III. FIDUCIARY FUNDS

Fiduciary Funds are also known as Trust and Agency Funds The governmental unit is a trustee of the assets that are present and will disperse those assets as an agent as requested by the provider of the assets (Fund 60-Activity Funds, Fund 71-Expendable Trust Fund, Fund 75-Non-Expendable Trust Fund).

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In establishing funds, it is a good business practice to only establish and maintain funds required by legal and operating requirements. Unnecessary funds result in a lack of flexi-bility and a lack of efficient financial administration.

IV. SPECIAL RESERVE FUNDS

Special revenue funds are used to account for revenue received from a source designated to be used for a specific purpose to supplement the basic educational program (Fund 50-Food Service).

V. GAAP ACCOUNT GROUPS

Under GAAP, besides the three types of funds are also two account groups. These account groups are the general fixed assets account group and the general long-term debt account group. These groups exist to provide a long-term financial picture of the governmental unit, because funds only provide a yearly view of the use of financial resources.

VI. GASB 34

Statement 34 establishes new requirements for the school district annual financial reports. Recordkeeping procedures and state reporting formats are likely to change with its imple-mentation. For most Wisconsin school districts, the required changes are scheduled to go into effect in 2002 and 2003. Since the implications of the new requirements have not been fully identified at the time of this writing, it is suggested that district personnel become familiar with the guidelines, remain alert to DPI and WASBO information on their application, and work closely with auditors to assure local compliance.

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CHECKLISTComplete In Progress N/A

I. ACCOUNTING SYSTEM

A. The district maintains a fund accounting system consistent with generally accepted accounting principles.

B. The district maintains accounts consistent with the State Accounting Manual.

C. An annual comprehensive financial report is filed annually and audited by independent Certified Public Account.

D. Audit suggestions are implemented on a timely basis.

E. Reports to the public are clear, concise and accurate.

F. The accounting system allows for the retrieval of information as needed.

II. INTERNAL CONTROL

A. Internal audit procedures are maintained for all cash transactions in the district.

B. Effective internal controls systems are used throughout the accounting system.

C. The Board of Education has established policies governing the operation of accounts in the individual schools petty cash and various athletic activities.

D. Accounting records and reports are maintained in a secure place with access only by authorized persons.

E. Controls and physical safeguards exist for working (petty cash) funds.

F. Control exists over warrant or check-signing machines as to signature plates and usage.

G. State and federal reports are filed on a timely basis.

H. The business office receives copies of all allocation letters, approval letters, and approved budgets for all federal projects.

I. Business office duties are segregated in such a manner as to ensure that no one person on staff is responsible for all aspects of a transaction.

J. Facilities for physical protection of cash are adequate.

III. ACCOUNTING PROCEDURES

A. The budget for all funds has been adopted in accordance with the State statutory requirements.

B. The district maintains an encumbrance system for all purchase orders.

C. A requisition system is properly maintained.

D. Prior approvals of all purchase orders are required to insure need, price and availability of funds.

E. Accounting transactions are kept up to date, balanced monthly, and are in sufficient detail to be useful by the various departments in preparing reports.

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F. The district has a procedure for returning merchandise and following up with vendor credit advice or refunds.

G. Purchase orders are prenumbered and controlled.

H. Purchase orders are required for all purchases (except small items purchased from petty cash).

I. Purchase orders are compared to appropriation balance to avoid over-expending budgets.

J. Vendor invoices are checked against purchase orders and receiving reports for terms, prices and quantities.

K. Cash balances are reconciled to bank balances monthly.

L. The school board approves all payments on a monthly basis.

M. Vendors are properly and promptly paid (timely payments are made to take advantage of discounts offered or to avoid penalties and interest).

N. Monthly reports from the treasurer concerning cash are presented to the school board.

IV. RECEIPTS & DISBURSEMENTS

A. Checks come into the district made out to the district rather than a person.

B. Disbursements are recorded chronologically showing date, vendor, check number, purpose and amount.

C. Disbursements are recorded chronologically showing date, vendor, check number, purpose and amount.

D. Prenumbered receipts are issued for all cash received and deposits made within a reasonable period, usually forty-eight hours.

E. A representative endorsement is placed on each incoming check upon receipt.

F. Receipts are posted to a receipts register and posted at least monthly to the General Ledger Revenue Accounts.

G. Drawing of checks to cash or bearer is prohibited.

H. The supply of unused and voided checks is controlled to prevent their misuse and assure that they are retained for documentation.

I. Tax collections from other units of government are monitored to assure timely receipt and amounts received are reasonable.

J. State aid status reports are checked for accuracy.

K. The signing of checks in advance of their getting completely filled out is prohibited.

L. Receipts are issued for all monies received.

M. All cash disbursements, except petty cash items, are made by check.

N. Disbursements from petty cash are properly evidenced by supporting data and approvals.


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V. BUDGET MANAGEMENT

A. The budget for all funds has been adopted in accordance with Wisconsin Statutes.

B. Amendments to the budget are authorized and documented.

C. The school board approves all budgetary transfers of funds as required by Wisconsin Statute.

D. Items are adequately insured or otherwise safeguarded from loss due to fire, theft or misplacement.

E. Monthly reports comparing expenditures with budget are presented to the school board.

F. Internal financial reports for management use are distributed at least monthly.

G. An inventory of fixed assets at historical cost is maintained.

VI. BANKING

A. Depositories have been authorized by the Board of Education and required signatures are affixed to all checks.

B. All securities are registered in the name of the school district including the appropriate fund.

C. Segregated bank accounts are maintained for Debt Retirement funds as required by Wisconsin Statutes.

D. The food service and/or milk accounts are properly maintained.

VII.PAYROLL RELATED ACCOUNTING

A. All changes in employment (additions and terminations), salary and wage rates, and payroll deductions are properly authorized, approved, and documented.

B. All notices of additions, separations, and changes in salaries, wages, and deductions are promptly reported to the payroll department.

C. All hours worked, overtime hours, and other special benefits are reviewed and approved by the employee’s supervisor.

D. Appropriate payroll records are maintained for accumulated employee benefits such as vacation time, sick leave, and qualification date for pensions.

E. Completed payroll registers are reviewed and approved before disbursements are made.

F. W-2 forms are compared to payroll records and mailed by employees not otherwise involved in the payroll process.

G. Accrued liabilities for unpaid employee compensation and benefit costs are properly recorded or disclosed.

H. Personnel records including salary and deduction data are maintained for all employees.


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REFERENCES

DiCello, Jim, Decentralization Calls for Internal Audits, School Business Affairs, 61/10, October 1995.

Guide for Evaluating the Business Functions of a School District. New Jersey ASBO, 1975, Updated 1985.

Governmental Accounting, Auditing, and Financial Reporting. Government Finance Officers Association, 1988.

Petersen, John E. and Strachota, Dennis R., Local Government Finance: Concepts and Practices, Government Finance Officers Association, Chicago, IL, 1995



Wisconsin Institute of Certified Public Accountants. School District Audit Updates, 1990.

Governmental Accounting Standards Board (GASB) Website:http://www.rutgers.edu/Accounting/raw/gasb/index.html

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CHAPTER 19

SCHOOL FINANCIAL REPORTING

INTRODUCTION

School financial reporting raises some immediate thoughts of national accounting regulations, and state and federal laws. In an attempt to redefine school financial reporting within a customer (user) framework, this chapter will provide only a general overview of statutory reporting and reg-ulatory requirements. This framework is designed to provide customers with the financial basics of public schools. In the four major sections of this chapter, school financial reporting will be con-sidered from a historical perspective, current/future perspective, a practical approach, and a checklist of reporting.

During the research phase for this chapter, a review of several Wisconsin Department of Public Instruction’s (DPI) reports was conducted. One particular paragraph from a DPI report captured the essence of what school financial reporting should never become.

“Remember that it is the universal tendency of officialdom to magnify itself, to complexity itself, to make two record books grow where only one was before, to make the bureaucracy constantly more complete, more stifling, more expensive, more ponderous. By and by the sys-tem will get you hypnotized so that you cannot escape, cannot see out of it, even. Now, while you are new and fresh and see clearly, now is the time to cut out the useless official red tape. Probably in most cases from one fourth to one half of your office work is better omitted than done. Look at it. Your greatest work is afield. A smile of encouragement to some forlorn youngster is worth a cord of useless record books plus a thousand official letters of nothing.”

This was written by Edward Hyatt, the fifteenth California Superintendent of Public Instruction, to new school administrators in 1915. It was reprinted by State Superintendent John Benson in the 1993-94 Data Collection Plan. The impetus for placing it in this section is not to suggest that financial reporting is unimportant, cumbersome, or in need of major revisions. Rather, the oppo-site is true. Public school districts are required by law to provide a full disclosure of financial activity, in a standardized format, and this priority will only continue in its importance. However, public schools cannot think financial reporting is an end to itself.

Over the years financial reporting has evolved into a rigorous practice that is governed by state and federal law and national accounting standards. Financial reporting responsibilities of public school districts continue to grow as the demand for information relating to the operation of schools increases. An example of this growth is illustrated in the Annual Report provided to the Department of Public Instruction. It has grown from 8 pages in 1917 to over 100 pages, including amendments, in 1994, to an exclusively electronic document by the year 2000.

I. HISTORICAL PERSPECTIVE

The accounting regulations and the Wisconsin Elementary and Secondary Accounting System (WESSAS) effectively standardized the format for reporting financial data. WES-SAS allows school districts to utilize a standardized accounting system for reporting financial data. This standardized framework also enables users to quickly analyze a school

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district’s financial operations, as well as utilizing these data for comparable studies among public school districts.

Wisconsin State Statute 120.14 requires school districts to undergo an annual independent financial audit to review their financial operations. This audit yields a review and analysis of financial activity, internal controls on financial activities, verification of budgeted and actual balances for the periods ending, and addresses national accounting regulations along with state and federal laws for financial reporting. The audit statement generated by this review confirms the data reported in the Annual School Report (P1-1505).

II. CURRENT & FUTURE PERSPECTIVE

The challenge facing us with financial reporting has little to do with the completion of an annual audit or completing the state and federal required financial reporting, although at times they are challenging. The true challenge rests in a school district’s ability to provide meaningful and purposeful financial data to one’s customers. You mean the annual audit and state reports aren’t enough? It depends on the customers!

Customers such as parents, students, community members, teachers, and school boards are demanding more information about the financial activities of schools. (i.e., “Where is all that money spent?”) It’s not surprising to many of us that the phrase, “The district spends 30% of the budget on undifferentiated curriculum”, doesn’t mean a lot to most par-ents, teachers or community members. The confusing nature of financial records coupled with the need to ensure the district is providing quality educational services while maxi-mizing resources seems to be at an all time high, and requires accurate, timely and mean-ingful reporting. Perhaps, this desire for information is fueled by the desire to hold the line on taxes, or a sign that taxpayers are looking to curb costs in any way possible. Regardless of the potential causes, school business administrators have found themselves in the mid-dle of providing financial data that customers are using for a multiplicity of purposes.

Where will financial reporting go in the future? The need for standardized formats for accounting purposes and year-end reporting will continue to be met through the current reporting systems (i.e. annual audit and annual report). However, the need for financial data for customer-generated questions or uses will continue to grow both in terms of vari-ety and volume. It’s simple. Customers desire “data” to support or refute a position they are taking in the local decision-making process. For example, customers (electors) ponder these “data” as they consider their votes on the school referendum, a vote to exceed the annual revenue limit, or a vote on the tax levy at the annual meeting.

So, how can school business administrators respond to these requests? Listen, listen and continue to listen to the customers. Then, work within your district’s decision-making pro-cess, take action steps to develop baseline data consistent with customer requests, and report it in a standardized multi-year format so the trends can be plotted and analyzed. As Dr. W. Edwards Deming has stated in his book, Out of the Crisis, “Organizations must respond to customer demands with meaningful and purposeful data.” In the case of school financial reporting, public schools cannot simply provide customers with the state or fed-erally correct reports, unless this is all they want.

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III. A PRACTICAL APPROACH

School financial reports can be oral or written, formal or informal, and technical or non-technical. These descriptions are not all inclusive, rather, they are listed in a effort to show the diversity of financial reporting and to bring attention to many ways that public school districts use financial data. For example, some of the most often asked questions of school financial officers include “What is the increase/decrease of expenditures contained in your current budget over last year?”; “What is the district’s current tax mill rate and projected rate for next year?”; and “What portion of the school’s budget is personnel?”. These ques-tions show financial data that may affect a future decision and most often these questions are responded to with an oral response. The point is that financial reporting requests can and will come in all shapes and sizes, and school business administrators need to respond to these question in a manner that will satisfy the customer.

Local school financial reporting can be summarized as the process of communicating information concerning the financial condition and activities of the school district to your customers. This reporting falls within the range of stringent accounting and state agency requirements, to specific local school district reports that contain local financial measure-ments and specific measures to respond to local customer questions. The accounting and state agency requirements are somewhat easy to identify as they are the responsibility of each and every public school district within the state of Wisconsin. Local school district reporting is a somewhat illusive concept since there is a variety of customer expectations. However, this variation can be managed through school board policy. For example, the financial reporting can be standardized and documented in school board policies. This process involves the development of financial reports based on customer questions and school district study and research.

The balance of this section will address school financial reporting as outlined by the Municipal Finance Officers Association of the United States and Canada. This organiza-tion lists financial reports in two sections — interim and annual. The term interim finan-cial report is used to describe a report used to document (1) period ending financial activity, (2) compliance with statutory and budget requirements; and (3) illustrate antici-pated financial events affecting the school operations. As an example, the school business administrator will prepare interim financial reports on construction projects to provide the school board with the period-ending report of budget to actual expenditures on the projects, or an interim financial report that illustrates a year- end projection on the person-nel budget.

Annual financial reports are designed primarily to meet the statutory requirements of financial reporting. They are largely used by school boards, regulatory agencies, taxpay-ers, investors, and creditors. Financial debt rating firms will use the historical audit state-ments to analyze a district’s financial position and assign a debt rating. In an effort to promote high quality annual financial reporting, the Association of School Business Offi-cials (ASBO) awards an annual distinction to public school districts for excellence in financial reporting via a program called ASBO’s Certificate of Excellence in Financial Reporting. The program requires school districts to complete a Comprehensive Annual Financial Report (CAFR). The CAFR is submitted to an independent group of ASBO rep-resentatives made up of independent certified public accountants, school business officers,

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academics, and consultants. This panel reviews the reports and awards the certificate based on benchmark requirements.

IV. SELF EVALUATION CHECKLIST FOR FINANCIAL REPORTING

The financial reporting responsibility of public school districts continues to grow as the demand for information increases. The aim of this section is to summarize reporting requirements for local financial operations and state and federal reporting.

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I. LOCAL FINANCIAL OPERATIONS

A. All accounts in the district accounting ledger are consistent with the Wisconsin Elementary and Secondary Accounting System (WESSAS).

B. The School Board approves the annual budget prior to July 1 of each year.

C. The School Board hosts a budget hearing to review the proposed annual operating budget.

D. Public notices for budget hearings are distributed to all customers on a timely basis.

E. A school board policy exists listing the standardized financial reports of the school district.

F. A school board policy exists outlining the process for responding to customer requests for budget information consistent with open meeting laws.

G. A treasurer’s financial report listing deposits and checks is submitted to the school board monthly and approved at a regularly scheduled meeting.

H. A treasurer’s financial report listing deposits and checks is available for customer review.

I. Budgeted expenditures, revenue and balance sheet totals are available or submitted to the school board/customers on a monthly basis.

J. Financial reports are available to the public and offered in a format consistent with Wisconsin Open Records Laws.

K. Financial reports are offered in an accessible format consistent with the American Disability Act (ADA).

L. The annual audit report is discussed at a regular public school board meeting and copies are available in accordance with state law.

M. The auditors’ recommendations are followed.

N. The computer systems security system is used to maintain confidentiality and access to the input of financial records.

O. Internal reports are maintained, reconciled and reviewed to insure proper internal controls.

P. Payroll reports, Wisconsin Retirement Reports and Federal Tax Withholdings are properly prepared, signed/certified and timely filed.

Q. Reports are submitted to Moody and/or Dun Bradstreet to maintain bond ratings.

II. STATE AND FEDERAL REPORTINGThis serves as a summary of DPI reports contained in the Data Collection Plan Report that are to be submitted to DPI on the appropriate dates.

A. July

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1. July 1st - Transfer of Service exemption requests due for students transferred in from another WI school district.

2. July 1st – Districts receive DPI estimate of general aid based on district budget data.

3. July 1st – Verification of Private School Names and Addresses, PI-1201 due

4. July 1st – School District Statistical Report, PI-1203 due

5. July 1st – Public School Directory Update, PI-1280 due

6. July 10th Lunch/breakfast reimbursement claim PI-1409, and special milk reimbursement claim, PI-1468

7. July 15th School census report by taxing municipalities, PI-1276

8. July 30th Wisconsin Morning Milk Program, PI-6036

B. August

1. August 1st Information Required For The Full Disclosure Tax Bill is submitted to DPI, PI-15 12

2. August 15th General Tuition Worksheet, PI-1524-A. PI-1524-B, PI-1524-C, Allocable Supplemental EEN program costs and PI-1524-E, EEN Program Costs by Type, PI-1524-F, Tuition Claim Worksheet, PI-1524-G, Tuition Claim Summary, CESA claim for Categorical Aid, and PI-1804, Summer School Program Report

3. August 30th State Supplemental Reimbursement for Elderly Nutrition, PI-1450

C. September

1. September 1st Annual Report, PI-1505 and County Handicapped Children’s Education Board PI-1511, and CESA, P1-1523 due

2. September 1st -Pupil Transportation Report, PI-1408

3. September 10th Lunch and breakfast Reimbursement Claim, PI-1409, submitted on a monthly basis September through June

4. September 15th – Financial Audit Statements due

5. About September 15th (9/17/99) – Third Friday Count Day. Districts use membership to finalize revenue limits and maximum levies.

6. One week later – Third Friday in September Pupil Count Report, P1-1567 due to DPI

7. September 30 – Last day for annual meeting in Common School Districts.

D. October

1. October 1st - DPI provides certified equalized value of property for current year as supplied by DOR (used to apportion tax levy; includes equalized value for property tax exemption for business computers.


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2. October 1st Tax Levy Certification, PI-1508

3. October 1st School Performance Report data due

4. October 15th –Fall Staff and Enrollment Reports, PI-1202/PI-129 due

5. October 15th – DPI certifies general aid estimate to school districts; districts finalize revenue limit calculation and maximum levy prior to computer aid. Districts calculate computer aid for property tax exemption for business computers and reduce the levy by the amount of the aid.

6. October 31st Tax Levy Certification, PI-1508

E. November

1. November 1st - Last day for the School Board to certify the tax levy [s. 120.12(3)(a)]

2. November 1st Financial Audit Report PI-1506 due

3. Federal Program Audit Statement, PI-1507 due to DPI

4. CESA Audit Statement, PI-1533 due to DPI

5. November 6 (about– Friday of that week) Last day to notify municipalities of tax levy. [s. 120.12(3)(b)]

6. November 8th (about) Budget Report, PI-1504 due

F. December

G. January

1. January 8 – 14th (designated day each year)- Second Friday Pupil Count Day

H. February

1. February 1st January Pupil Membership Report, PI-1563 due to DPI

2. February 14th CHCEB, General Aid Claim, PI-1560, Enrollment Report, PI-1561, and Joint Membership Report, PI-1562

3. February 14th – Districts notified of required membership audits.

I. March

J. April

1. April 14th – Course Offerings Report, PI-1215 due

K. May

1. May 1st – Last day to request state aid ten-payment option.

2. May 1st – Required Membership audits due to DPI

3. May 15th - Summer School Program Report, PI-1804

L. June


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REFERENCES

Derning, W. Edwards, Out of The Crisis. Massachusetts Institute of Technology. Cambridge, MA, 1991.

Gatti, Bernard F., Year in Review - ASBO’s Certificate of Excellence in Financial Reporting, School Business Affairs. 59, 10:28-29, 1993.

Handbook for School Business Officials. Illinois ASBO, Updated 1990.

Municipal Financial Officers Association of the U. S. and Canada, Governmental Accounting, Auditing and Financial Reporting. Chicago, IL, 1990.

Financial Management Handbook for Federal and State Grant Programs. 1993.

Wisconsin Department of Public Instruction, Data Collection Plan, Bulletin Number 93267, State of WI Publications, Madison, WI.

Wisconsin Department of Public Instruction, Data Collection Plan Description, Updated September 8, 1999, Bulletin Number 93267, State of WI Publications, Madison, WI, http://www.dpi.state.wi.us/oea/dpidata.html

Wisconsin Department of Public Instruction, Data Collection Applications, Updated September 8, 1999, Bulletin Number 93267, State of WI Publications, Madison, WI.http://www2.dpi.state.wi.us/AboutPub.asp

Wisconsin Department of Public Instruction, Data Collection Applications - Note from the State Superintendent, December 19, 1999.http://www2.dpi.state.wi.us/StSupt.asp

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CHAPTER 20

WISCONSIN SCHOOL DISTRICT AUDITING

I. SCHOOL DISTRICT AUDIT REQUIREMENTS

The statutory provision (s.120.14 Wisconsin statutes.) for the audit of school district accounts require school boards to employ a licensed accountant to audit district accounts and provide a membership audit if so required of the district by the Department of Public Instruction (DPI). If the district has a self-funded health benefit plan, the audit must include information about the plan specified by the Wisconsin Commissioner of Insur-ance. The DPI is required by s.120.14 to establish minimum standards for school district audits. An accountant engaged in public practice as a Certified Public Accountant (CPA) in Wisconsin must possess a license issued by The Wisconsin Department of Regulation and Licensing.

The term “audit” as used in the context of requirements for Wisconsin school districts are financial audits as defined in Governmental Auditing Standards, “GAO standards”, issued by the United States Comptroller General. These standards define financial audits as audits which “....determine (1) whether the financial statements of an audited entity present fairly the financial position, results of operations, and cash flows or changes in financial position in accordance with generally accepted accounting principles, and (2) whether the entity has complied with laws and regulations for those transactions and events that may have a material effect on the financial statements.”

Pursuant to the statutory requirement to prescribe minimum school district audit standards the DPI developed Wisconsin Administrative Code PI 14.03 “Minimum standards for audit and standard school district audit contract”. This administrative rule requires the audit include the examination of the district’s general purpose financial statements for all funds and account groups. It requires the auditor to respond directly to inquiries from the DPI or the United States Department of Education. The auditor must permit these agen-cies to review work papers upon request.

The financial statements presented in the auditor’s report must comply with generally accepted accounting principles and conform to the account structure prescribed for school districts. The auditor must express an opinion on the district’s financial statements. If the auditor is unable to express an unqualified opinion, “clean opinion,” the reason for the qualification or disclaimer must be fully explained. It is the responsibility of the school district to correct any deficiencies which caused the qualification or disclaimer.

Specified standards the auditor must follow include:

A. Standards issued by the American Institute of Public Accountants (AICPA). These standards must be followed by CPA’s in expressing opinions on financial state-ments.

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B. Standards for Audit of Governmental Organizations, Programs, Activities and Functions established by the United States Comptroller General. These standards are also referred to as Governmental Auditing Standards or GAO standards.

In addition, the auditor must meet the requirements of the federal Single Audit Act and perform applicable procedures included in the Wisconsin Public School District Audit Manual issued by the DPI.

A distinction must be made between auditing standards and auditing procedures. Auditing standards define the broad objectives and requirements for the audit prescribed by profes-sional and oversight organizations, while auditing procedures are the methods used in an audit engagement to satisfy the objectives and requirements identified in the standards. Auditing procedures are specific in application and vary from audit to audit, depending on the circumstances.

II. OBTAINING AUDIT SERVICES

School districts are free to contract with any licensed accountant for audit services. The administrative rule PI14.01 includes a standard audit contract format. The cost of audit services is a matter of negotiation between the district and auditor. When contracting for audit services the district is purchasing time from the auditor. The charge for that time will vary from one auditor to another. Although cost is an important factor when hiring an auditor, experience, availability, quality and timeliness of work are also important consid-erations. The DPI will not recommend auditors, but will upon request provide a listing of auditors currently performing school district audits or expressing an interest in doing so.

Procuring audit services is somewhat simplified due to the uniformity of school district accounting systems and audit requirements. The usual way to solicit for audit services is to have the auditor respond to a “request for proposal” (RFP). The RFP could be a letter identifying that the district is requesting bids for audit services meeting federal and state requirements, and the auditor should contact the district for information. Conversely the RFP may be a document including items such as the following:

A. The criteria to be used in evaluating the bid and the relative importance of each. If price is not the only criteria, the RFP should plainly state this. If criteria other than price are used, an evaluation process for the non-price criteria will be necessary.

B. Identification of due dates, and consequences if dates are missed.

C. Services in addition to auditing that the successful bidder will be expected to pro-vide.

D. A description of the district’s accounting and fiscal environment as it impacts on audit procedures and the time necessary for performing the procedures:

- accounting funds other than the General Fund used;

- number of checking, savings and investment accounts for each fund;

- number of locations with pupil activity funds;

- name of accounting software used;

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- number of taxing districts within the school district;

- a listing of the federal and state aid programs the district participates in and estimated receipts for each;

- number of debt issues outstanding and whether or not refinancing transactions has occurred or is contemplated for the year for which the audit proposal is requested;

- if the district is the fiscal agent for a co-operative or host for a CESA packaged services program.;

- if the district is self-funding health benefits;

- status of employee contracts.

E. A request that the bidder identify experience in governmental and Wisconsin school district auditing, with permission being granted to contact identified clients.

F. A request that the bidder identify personnel to be assigned to the audit, and rele-vant experience each has.

Should a district change auditors? The answer to this question is dependent upon the feel-ings of district management and circumstances of the moment. A district management that views selecting an auditor as a requirement to be met by having only price as a criteria are doing a disservice to their district and are potentially placing themselves at risk. If a dis-trict wishes to minimize audit costs, it may be possible to do this by bidding for services every year. However, many firms will not respond for RFPs with a one year contract period.

Again, the auditor is selling time, and audit cost is going to be a function of time spent on the audit and the chargeable time rate the auditor is willing to accept. When one auditor bids a lower contract amount than another, this means that auditor with the lower bid is willing to accept a lower rate for chargeable time or is planning to spend less time on the audit than a firm with a higher bid. A low bid does not necessarily connote an inadequate audit. There are several reasons why a firm would be willing to accept less than its stan-dard rate. The time frame for school district audits may occur at a time when firm staff is available. A firm may wish to get a “foot in the door” for school district audits. Others may view school district audits as a means to expose staff to governmental accounting and auditing.

Rather than cost as criteria to change auditors, it is more appropriate to consider a change when the current auditor is not performing satisfactorily or when a fresh perspective is felt desirable. Not performing satisfactorily means the auditor is not meeting due dates, is not communicating with management, is not responding to requests for information from the district or the DPI. It does not mean a legitimate difference of opinion concerning a sub-ject where the auditor has, under professional standards, adequate justification for the position taken.

Performance and reasonable cost, not the size of the firm, should be considerations when selecting an auditor. Many of the most highly regarded individuals involved in school dis-trict auditing are representatives of small or medium size firms or are sole proprietors. This is likewise true for individuals associated with larger firms. The quality of the audit

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will have a relationship to the ability and knowledge of the individuals performing the audit procedures and responsible for report issuance. The audit contract period may range from one year to several years. As previ-ously mentioned, auditors may be reluctant to bid on audit contracts for only a year’s period. The reason for this is the “start-up” involved in an audit. It is necessary for the auditor to obtain an understanding of the district’s accounting and internal control systems, identify contact personnel and develop a working relationship with them, obtain “permanent file” documents such as debt amortization schedules, and organization charts. The most com-mon contract period is three years. Such a contract period permits the auditor to use the understanding regarding the district’s operations gained in the first year to focus efforts on specific concerns of the district.

III. PREPARING FOR THE AUDIT

The cost of the audit and timings of report receipt is related to the amount of work required by the auditor. A district that is able to close its accounting records, has recon-ciled bank statements, has a completed Annual Report, and can reconcile aid claims to accounting records should incur lower audit costs than a district that does not. The district and the auditor should have an entrance conference, preferably prior to the end of the fis-cal year identifying documents needed by the auditor and assistance required of district staff.

Documents needed by the auditor include:

A. Accounting ledgers and supporting documents such as vouchers and canceled checks;

B. Board minutes;

C. Budgets and amendments;

D. Board policies, particularly those regarding pupil activity funds and cash flow;

E. Bank reconciliations and documents relating to investment transactions;

F. Contracts (personal, transportation, tuition, CESA and cooperative programs);

G. Debt payment schedules and capital lease agreements;

H. Aid claims and worksheets;

I. Communications from the DPI regarding filed Annual and Budget reports.

The auditor may request that district staff prepare the following schedules (the extent of which is subject to agreement between the district and the auditor):

A. A listing and value of prepaid items, supplies and materials on hand;

B. “Fixed asset” summaries and listings showing additions and disposals in equip-ment and buildings;

C. A schedule showing beginning and ending balances, receipts and disbursements for pupil activity and district trust accounts;

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D. A schedule showing levy, tax collections and uncollected balances by taxing dis-trict;

E. A schedule showing federal and state grant and aid program receipts and uncol-lected amounts at beginning and year end.

The entrance conference should serve for more than a discussion of the logistics of the audit. It can serve as a means for communicating concerns that may be addressed by the auditor in conducting the audit. Prior to the conference it would be helpful that an opportu-nity be given to the district’s school board to make known any concerns or issues that it feels the auditor should address. It is recommended that the district identify an audit com-mittee to interact with the auditor. The audit committee may be the district’s financial committee or budget committee. If so, it is important that this committee has been for-mally designated oversight responsibilities for financial reporting process and this fact conveyed to the auditor. The reason for this is that auditors are required by AICPA stan-dards to communicate certain matters relating to the audit when such a committee is iden-tified.

IV. AUDIT RESPONSIBILITIES

Management and the auditor each have responsibilities regarding audited financial state-ments. Financial audits have a limited objective. The limitations of financial audits are identified in “Governmental Accounting, Auditing and Financial Reporting” published by the Governmental Finance Officers Association:

“Financial audits are designed to provide reasonable assurance the financial state-ments are free from material misstatements (intentional or unintentional), Auditors do not assert the absolute accuracy of the information presented, not do they claim that an audit will disclose all instances of illegal acts.”

The limited financial audit objectives are reflected in the auditor’s report or “opinion” that accompany audited financial statements. The auditor’s report is usually the only page in a financial audit report for which the auditor has sole responsibility.

The following first and second paragraphs (emphasis added) of a standard auditor’s reports identifies management and auditor responsibilities regarding the financial state-ments.

We have audited the general purpose financial statements of the School District of Anywhere as of and for the year ended June 30, 20XX as identified in the accompany-ing table of contents. The general purpose financial statements are the responsibility of the District’s Board of Education and management. Our responsibility is to express an opinion of these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards and Government Audit Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence support-ing the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Dis-trict’s Board of Education and management, as well as evaluating the overall financial

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statement presentation. We believe that our audit provides a reasonable basis for our opinion.

Note that the financial statements along with the accounting principles and estimates used in those statements are the responsibility of the district, not the auditor. This means that district management is responsible for the content of the financial statements contained in an “audit report.” The auditor’s responsibility is to express an opinion in accordance with the requirements of the identified standards, which is done in the third paragraph of a stan-dard auditor’s report and states:

In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the District of Anywhere at June 30. 19XX, and the results of its operations and the cash flows of its fiduciary fund types for the year then ended, in conformity with generally accepted accounting prin-ciples.

This paragraph represents the objective of a financial audit, to enable the auditor to express an opinion on the district’s financial statements. According to the Governmental Auditing Standards definition of a financial audit, its purpose is to determine whether the financial statements of an audited entity present fairly the financial position, results of operations, and cash flows in accordance with generally accepted accounting principles.

The second item in the Governmental Auditing Standards definition for financial audits is a determination that laws and regulations that may have a material effect on the financial statements have been complied with. This requirement results from government organiza-tions and activities usually being created by law and being subject to specific rules and regulations.

Both the auditor and management have responsibilities in regard to issues related to legal compliance. Management is responsible for establishing an internal control structure to assure compliance with laws and regulations. The auditor, in determining compliance with laws and regulations, is responsible for designing audit steps and procedures to provide reasonable assurance of detecting errors, irregularities, and illegal acts that could have a direct and material effect on the financial statement amounts or the results of financial related audits.

A self-evaluation guide and checklist follows that can be useful in preparation for the annual audit.

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I. ANNUAL AUDITING & RELATED REQUIREMENTSA. An annual audit of the school district’s general purpose financial

statements is conducted by a certified public accountant in conformity with generally accepted auditing standards.

B. The audit report is prepared in accordance with the standards as set forth by Wisconsin administrative code, section P114.03. (standard school district audit contract).

C. The district has an annual audit conducted promptly at the end of each fiscal year by an independent Certified Public Accountant.

D. The audited general purpose financial statements include the following:

1. General Fund

2. Special Projects Funds

3. Debt Retirement Fund

4. Building and Site Funds

5. Food Service Fund

6. Student Activity Funds

7. Trust and Agency Funds

8. Community Service Funds

9. Package/Cooperative Program Funds

10. General Fixed Assets Account Group

11. General Long-Term Debt Account Group

12. Notes to Financial Statements

13. Additional information required by the Wisconsin Department of Public Instruction.

E. The audit should include at least the following records of the school district:

1. A review of internal controls

2. An audit of all cash accounts

3. An audit of all investments

4. An audit of any imprest funds

5. An audit of the payroll records

6. An audit of accounts receivables

7. An audit of encumbrances outstanding

8. An audit of inventory items and values

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F. The audit report includes an opinion letter signed by the auditor and directed to the school board, indicating the scope of the audit, expressing an opinion as to the presentation of the school district’s financial statements in conformity with generally accepted accounting principles, and indicating that the audit was made in accordance with generally accepted audited standards.

G. The audit report includes a management letter identifying strengths and weaknesses of the accounting system and detailed recommendations for improvement.

H. The audit contains notes to the financial statements that are essential to fairly presenting the financial position of the school district and communicating information that is not apparent from the reports themselves.

I. The audit includes a review of the official minutes of all the school board’s public meetings.

J. The audit includes a review of all legal contracts approved by the board.

K. The audit includes a review of all bids approved by the board.

L. A “single audit” is conducted annually of federally funded grant programs as required by the Federal Government for all school districts receiving at least $300,000 in federal financial aid annually. For districts receiving between $25,000 and $100,000, either a single audit or individual grant audit is required. The single audit includes both financial audits on the grant projects and audits for compliance with applicable regulations.

M. The audit report is completed and delivered to the district in a timely fashion following the close of the school year.

N. The audit report is filed on the appropriate form and in accordance with the requirements of the Wisconsin Department of Public Instruction.

O. A financial report is published annually and:

1. Does not include the auditor’s name unless the full report, including footnotes, is published.

2. Is published in a newspaper having significant general circulation in the school district or in a newsletter mailed to each resident in the district.

3. Is published prior to the Annual School District Meeting.

4. Is comparative with the previous fiscal year.

5. Includes balance sheets and statements of revenues and expenditures for the various Funds of the district, and the statement of the General Long-Term Debt Account Group.

6. Includes statistical information and a narrative statement describing the general financial condition of the school district and recommendations for next year.

P. The audit report is filed with all other appropriate agencies such as

1. Wisconsin Department of Public Instruction.


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2. Federal Agencies responsible for programs directly funded by federal sources. (Single Audit Act of 1984, P.L. 98-502 and 0MB Circular No.A-133.)

3. National Clearinghouse for Single Audit Reports (0MB Circular No. A-128)

4. Municipal Bond Rating Agencies.

5. Authorized Financial Institutions.

Q. The auditor is a certified public accountant licensed to practice in the State of Wisconsin.

R. Ideally, the selected CPA will have experience with Wisconsin school audits, and have a large enough staff to provide the appropriate services to the school district. This service should include the ability to meet the minimum components of a single audit report.

S. The initial selection process should include solicitation of quotes from numerous auditing firms and CPA’s.

T. The selection of the independent Certified Public Accountant (CPA) is made by the board of education based on a recommendation from the administration.

U. The selection of the CPA and amount of compensation are made a part of the official board minutes.

V. The administration signs a formal engagement letter with the auditor.

W. A member of the district’s staff has been designated by the board to act as the resource person responsible to provide all required records necessary for the CPA to complete the audit.

II. PREPARING FOR THE AUDIT

A. The following records are available for the auditors:

1. General Ledgers

2. Budget Reports

3. Transaction Registers

4. Cash Receipts Journal

5. Cash Disbursements Journal

6. Purchases Journal

7. Payroll Distribution Journal

8. Personnel files

9. Bank reconciliations

10. Investment records

11. Federal Funding Requests and Expenditure Reports completed to date

12. Minutes of School Board meetings


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13. Copies of original and amended budgets

B. Business office staff are available to locate and retrieve invoices, cancelled checks, and personnel files.

C. All federal program directors are available for questions.

D. Federal grant records are available for inspection, including grant awards, budgets, expenditure reports, cost allocations, and student eligibility records.

E. During the preliminary phase of the audit, the timing and scope of the audit procedures and any unusual issues or transactions are discussed

F. The auditors and the business administrator/designee reach an agreement on who will prepare year-end lead schedules and account analyses for the audit.

G. Prior year journal entries are reviewed to ensure some adjustments, if appropriate, are made to current year records.

H. Confirmation letters are typed for the auditors to mail approximately June 30. The typed and signed letters are returned directly to the auditor.

III. YEAR-END REVIEW OF BALANCES

A. All normal month-end and year-end closing procedures are completed prior to the beginning of the audit.

B. The business administrator/designee carefully reviews the year-end trial balance after all closing entries are made.

C. All key asset and liability accounts are reviewed for propriety.

D. All key revenue and expenditure accounts are reviewed for reasonableness in relation to the final amended budget.

E. The business administrator/designee checks to see that all key balance sheet accounts are in agreement with supporting documentation to be examined by the auditors. Some of the key accounts are as follows (all funds):

1. Cash (Bank Reconciliations)

2. Due From Other Governments (Federal Funding Requests) and Grant Revenues

3. Property Taxes Receivable and Revenue

4. Inventories

5. Prepaid Expenditures

6. Accounts Payable

7. Contracts Payable

8. Accrued Payroll (Hourly and Summer Employees)

9. Accrued Expenditures

10. Notes Payable

11. Inter-fund Receivables/Payables and Transfers


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12. General Fixed Assets

13. General Long-Term Debt

F. The year-end financial statements and footnotes are prepared for the auditor’s examination.

IV. WORKING WITH THE AUDITORS

A. The district attempts to secure suitable space for the auditors that is easily accessible to the business office.

B. Work schedules in the business office are arranged so that all appropriate staff are accessible to the auditors for questions and to resolve problems during the entire audit period.

C. All schedules the school district agreed to furnish or prepare are completed and furnished to the auditors at the beginning of the first day of the audit.

D. If the auditors propose adjustments to the accounting records, the business administrator/designee reviews the entries and supporting records with the auditors and decides whether to record the entries. All agreed to entries are posted to the district’s accounting records.

E. An exit conference is held with the auditors, the business administrator/designee, and the federal grant directors at the completion of the federal grant compliance audit to review any findings.

F. After the final audit adjustments are posted to the accounting records, a final trial balance is prepared and compared to the final audit report to ensure agreement.

G. At the completion of the audit, the business administrator/designee and/or Superintendent meets with the auditors to review a preliminary draft of the audited financial statements, the single audit report, and the auditor’s management letter and recommendations prior to final issuance.

H. The audit report is formally presented to the Board either by the auditor or the business administrator.

I. The auditor’s management letter and recommendations are reviewed in detail to determine the feasibility of implementing any or all of the recommendations.

J. The administration prepares a written response to the board of education detailing the plan of action in response to the recommendations in the auditor’s management letter. A copy of this response is shared with the auditor.


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REFERENCES

Lundberg, Paul J., Audit Preparation: How to Save Time and Money, School Business Affairs, 61/10, October 1995

Petersen, John E. and Strachota, Dennis R., Local Government Finance: Concepts and Practices, Government Finance Officers Association, Chicago, IL, 1995



Wisconsin Association of School Boards (WASB), The School Budgeting Cycle, 1996.

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CHAPTER 21

WISCONSIN RECORDS RETENTION SCHEDULE FOR SCHOOL DISTRICTS

INTRODUCTION

School districts accumulate thousands of pages of records every year—records that soon become obsolete. Questions arise frequently regarding record retention, destruction, and the interpretation of statutes relating to the transfer of records.

Section 19.21(6) l) provides statutory guidance for the policy development, retention, transfer, and destruction of school district records. A school district, except a first class city school district, may provide for the destruction of obsolete school records. Prior to any such destruction, at least 60 days’ notice in writing of such destruction shall be given to the State Historical Society, which shall preserve any records it determines to be of historical interest. The State Historical Society may, upon application, waive the notice. The period of time a school district record shall be kept before destruction shall be not less than seven years, unless a shorter period is fixed by the Public Records and Forms Board under s. 16.61 (3)(e) and except as provided under sub. (7). This sec-tion does not apply to pupil records under s. 118.125.

Section 19.21 (6) of the Wisconsin statutes states the following:

• School districts may provide for the destruction of obsolete school records except for pupil records under s. 118.125. However, prior to, any destruction, at least 60 days’ written notice must be given to the State Historical Society (SHS). The prior notice requirement enables the preservation of school records determined by the SHS to be of historical interest. The SHS may waive the notice requirement.

• The period of time a school district record must be kept before destruction must be not less than 7 years, unless a shorter period of time is fixed by the Public Records and Forms Board.

The Department of Public Instruction has developed a School District Records Retention Sched-ule (SDRRS) design to guide school district decisions regarding records management. The SDRRS provides recommended retention periods for records common to all school districts, denotes records of historical importance, and describes a process for transfer of records to the State Historical Society (SHS) as well as a procedure whereby the SHS may waive the notice requirement. School districts that adopt the SDRRS will find the retention, destruction, and trans-fer of records to the SHS more manageable. A copy of the schedule is available from the Informa-tion Management Specialist, Department of Public Instruction (See References).

A district may adopt the entire Schedule, individual sections, or a modified version. It is recom-mended that school districts adopt the Schedule and submit the Notification Form to the SHS. This document addresses hard copy (paper) and microfilm records only. Adoption of the SDRRS will

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• enable disposal of some records in less time than the seven years generally required by the statutes;

• provide guidance regarding those school district records that should be preserved locally or are of interest to the SHS; and

• eliminate paperwork for both the district and the SHS.

Questions concerning the retention of other types of storage media are handled on a case by case basis with assistance available from either DPI or the SHS.

I. MICROFILMING SCHOOL DISTRICT RECORDS

School Districts may keep and preserve public records through the use of microfilm pro-viding that the microfilming meets the applicable standards established in s.16.61 (7), Wisconsin Statutes. School districts should consider factors such as the retention period and estimated cost of the microfilming in deciding which records to microfilm. After veri-fication by school district, paper records can be destroyed if these records are to be pre-served on microfilm. For microfilmed records not identified as permanent, the designated records retention period applies.

Note of Caution: It is important to be aware of the latest regulations regarding records. Contact the organization(s) listed in the For Further Assistance section for more informa-tion.

II. PUBLIC RECORDS LAW SECTION 19.21(6)

Section 19.21(6), Wisconsin Statutes, states that school districts may provide for the destruction of obsolete school records except for pupil records under s. 118.125. Section 19.21(6) also explains the advance notice that must be given to the historical society. In addition, the law states: The period of time a school district record shall be kept before destruction shall be not less than seven years, unless a shorter period of time is fixed by the Public Records and Forms Board. The Public Records and Forms Board has fixed/approved the retention periods* listed in this schedule, many of which are less than seven years. Retention periods begin at the time the records are created (except for records, which pertain to federally funded projects as footnoted in the Schedule). The opportunity to destroy records after a shorter period of time will alleviate some long-term storage needs.

III. NOTE ON PUPIL RECORDS

Although most school district records fall under Section 19.21(6), pupil records do not. Pupil

* Retention periods begin at the time the records are created (except for records which pertain to federally funded projects as footnoted in the Schedule).

records are addressed in Section 118.125, Wisconsin Statutes. (see Appendix II). The law states that each school board shall specify “the time during which pupil records shall be maintained.” However, two guidelines are stated: 1) No behavioral records may be main-

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tained for more than one year after the date upon which the pupil graduated from or last attended school, unless the student specifies otherwise, and 2) pupil records need not he maintained for a period of longer than five years after the pupil ceases to be enrolled in the school.”

The Task Force on School District Records recommends the retention periods listed in this Schedule. Some recommended retention periods are less than seven years, others (for records deemed to have administrative, historical, fiscal and/or legal value) are more than seven years.

For any record that indicates a retention period of less than seven years, the school district may destroy the record in compliance with s. 19.21(6) if the school district has retained the record for at least the period of time indicated on the Schedule. For example, if the Schedule indicates a retention period of three years, the school district may destroy the record any time after three years, but not before three years, and be in compliance with s. 19.21 (6).

For any record on the Schedule that indicates a retention period of seven years or more, the school district may destroy the record and comply with s. 19.21(6) if the school district has retained the record for at least seven years. For example, if the Schedule indicates a retention period of ten years, it is recommended to retain the record for ten years, but the school district may destroy the record any time after seven years and be in compliance with s. 19.21(6).

IV. TO ADOPT THE SCHEDULE

School districts are advised to adopt the Schedule even though they may not have all the records listed in it. A district may adopt the entire schedule, individual sections, or a mod-ified version. A district may develop a Schedule with different retention periods from those listed. For records to be retained less than seven years, the district may not adopt a retention period shorter than that indicated in the Schedule without the approval of the Public Records and Forms Board. A new Schedule, or list of modifications, must be sent with the Notification Form. Specific school district records can be listed in Section 6, Mis-cellaneous Records. An adopted Schedule becomes the district’s policy on record reten-tion, destruction, and local preservation and/or the transfer of records to the historical Society.

V. DESTRUCTION AND TRANSFER OF RECORDS

If the district has made a decision to adopt the Schedule, notification can be given to the Historical Society of the district’s intention to destroy/transfer records in accordance with the Schedule. The Notification Form provides a “blanket”, 60-day notice to the Historical Society in compliance with s. 19.21(6). Records older than 50 years require a separate (or additional) notification to the Historical Society prior to destruction. Unless the Historical Society informs the district otherwise, the district may begin record destruction upon acknowledgment of receipt of the form from the Historical Society. A district should con-tact the State Historical Society prior to transfer.

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For any record that does not appear on the Schedule, the school district may destroy the record (after notice to the Historical Society) any time after seven years and be in compli-ance with s. 19.21(6). If the school district wants to destroy such a record before a period of seven years has elapsed, the district must obtain the approval of the Public Records and Forms Boards as provided in s. 19.21(6).

Note of Caution: Under the law, no record may be destroyed after a receipt of a request for inspection or copying of the record until the request is granted or until at least 60 days after the date that the request was denied. If a legal action has begun to obtain access to a requested record, the record may not be destroyed until after the litigation is completed (as provided in s. 19.35(5), Wisconsin Statutes).

VI. RECORDS OF PERMANENT HISTORICAL IMPORTANCE

Those records determined to be of permanent historical importance are noted on the Schedule. If the Historical Value column is checked, then the district should transfer the indicated record to the Historical Society only if the district does not wish to physically retain the records permanently. Because historically valuable school records tend to be most frequently used by local citizens, the Historical Society may recommend that these records be retained locally where they can be preserved in a safe and permanent manner. The statutes (s. 120.13 (12), s. 44.09, and s. 19.23) permit any school district/board to transfer custody to the Historical Society of any record that is no longer needed for the proper administration of the district and that is deemed by the Historical Society to be of permanent historical importance.

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REFERENCES

For Further Assistance, contact the following individuals:

— for general information on records management and technical assistance:

Executive SecretaryPublic Records and Forms Board4622 University AvenueMadison, WI 53702(608) 266-2996

— for information or questions about historical records:

Archives Collection DevelopmentState Historical Society816 State StreetMadison, WI 53706(608) 262-0629

— for information on records-related requirements of the Department of Public Instruction:

Information Management SpecialistDepartment of Public Instruction125 South Webster StreetMadison, WI 53702(608) 267-9154

— for information on records-related requirements of pupil records of children with exceptional educational needs contact DPI:

http://www.dpi.state.wi.us/dpi/een/bul98-02.html

— for information on Frequently Asked Questions About Libraries and Wisconsin’s Public Records Law:

http://www.dpi.state.wi.us/dltcl/pld/publicrec.html

— for information on records-related requirements of state and federal grants (34 CFR, Part 80.42) administered by the he Department of Public Instruction:

http://www.dpi.state.wi.us/dpi/dfm/sms/doc/fhndbook.doc

— To contact the State Historical Society (SHS):

http://www.shsw.wisc.edu/archives/locrecs/locguide.html

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APPENDIX I

WISCONSIN STATUTE SECTION 19.21 (6)

(6) A school district, except a first class city school district, may provide for the destruction of obsolete school records. Prior to any such destruction, at least 60 days’ notice in writing of such destruction shall be given to the historical society, which shall preserve any records it determines to be of historical interest. The historical society may, upon application, waive the notice. The period of time a school district record shall be kept before destruction shall be not less than seven years, unless a shorter period is fixed by the public records and forms board under s. 16.61(3)(e) and except as provided under sub. (7). This section does not apply to pupil records under s. 118.125.

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APPENDIX II

WISCONSIN STATUTE SECTION 118.125(1)(2M) AND (3)

118.125 Pupil records.

(1) DEFINITIONS. In this section:

(a) “Behavioral records” means those pupil records which include psychological tests, personality evaluations, records of conversations, any written statement relating spe-cifically to an individual pupil’s behavior, tests relating specifically to achievement or measurement of ability and any other pupil records which are not progress records.

(b) “Directory data” means those pupil records which include the pupil’s name, address, telephone listing, date and place of birth, major field of study, participation in offi-cially recognized activities and sports, weight and height of members of athletic teams, dates of attendance, photographs, degrees and awards received and the name of the school most recent previously attended by the pupil.

(c) “Progress records” means those pupil records which include the pupil’s grades, a statement of the courses the pupil has taken, the pupil’s attendance record and records of the pupil’s school extracurricular activities.

(cm)“Pupil health care records” means all records related to the health of an elementary or high school pupil prepared by or under the supervision of a health care provider, as defined under s. 146.81(1), except those records subject to s. 51.30 or records of tests administered under s. 343.305.

(d) “Pupil records” means all records, except pupil health care records, relating to indi-vidual pupils maintained by an elementary or high school but does not include notes or records maintained for personal use by a teacher or other person who is required by the department under s. 115.28(7) to hold a certificate, license or permit if such records and notes are not available to others nor does it include records necessary for, and available only to persons involved in, the psychological treatment of a pupil.

118.125(2m) CONFIDENTIALITY OF PUPIL HEALTH CARE RECORDS. (a) Except as provided in par. (b), for the purposes of this section, a pupil health care record shall be treated as is a patient health care record under ss. 146.81 to 146.83.

(c) Any part of a pupil health care record that concerns the results of a test for the pres-ence of HIV or an antibody to HIV shall be treated as provided under s. 146.025.

(3) MAINTENANCE OF RECORDS. Each school board shall adopt rules in writing speci-fying the content of pupil records and the time during which pupil records shall be maintained, except that no behavioral records may be maintained for more than one year after the date upon which the pupil graduated from or last attended the school, unless the pupil specifies in writing that individual behavioral records may be maintained. Rules adopted under this subsection shall he published by the school board as a class one notice under ch. 985. Pupil records need not be maintained and pupil health care records may not be maintained for a period of longer than five years after the pupil ceases to be enrolled in the school. School districts may maintain pupil records on microfilm or in such form as the board deems appropriate.

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APPENDIX III

LIST OF RELEVANT STATUTES

Destruction of Public Records

After Request to Inspect or Copy § 19.35(5)

City Council, Authorization § 19.21(4)

Village Board, Authorization § 19.21(4)

County Boards, Authorization § 59. 717

School Boards, Authorization § 19.21(6)

Town Boards ,Authorization § 19.21(4)

Milwaukee County, Authorization § 19.21(5)

Metropolitan Sewerage Commission, Authorization § 19.21(8)

Notice of State Historical Society § 19.21(4)(a), (6), (8)

When May be Destroyed § 19.21(4)(b), (6), (7), (8), 19.35(5)

Meetings, Tape Recordings § 19.21(7)

School District

Pupil Records § 118.125(1)

Confidentiality § 118.125(2)

Maintenance of Records § 118.125(3)

Transfer of Records § 118.125(4)

Use for Suspension or Expulsion § 118.125(5)

Application to Existing Records § 118.125(6)

Records, When Obsolete Destruction of § 19.21(6)

Authority, Included as § 19.21(1)

Records, Microfilming §19.21(4)(c)

Public Records and Forms Board § 16.61

Public Records Defined § 19.32 (2)

Historical Society

Notice to of Destruction of Records § 19.21(4)(a), (5), (6), (8)

Transfer of Records to § 19.23

County Records, Transfer to § 59.716

Municipal and Court Records, Transfer to § 44.09

Access to Public Records § 19.35

Custodian, Restricting § 19.35(1)(k)

Limitations Upon Access § 19.36, 19.35(1)(k)

Notice of Right to § 19.34(1)

Hours in Which Permitted § 19.34(2)

Exceptions to Public Records Law

Limitations Upon Access § 19.36(1)

Law Enforcement Records § 19.36(2)

Trade Secrets § 19.36(5)

Separating Public from Nonpublic § 19.36(6)

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APPENDIX IV

THE EDUCATION DEPARTMENT’S GENERAL ADMINISTRATIVE REGULATIONS (EDGAR)

EDGAR consolidated into a single document uniform requirements for the administration of U.S. Department of Education grants. The administrative regulations provide specific provisions for retention of federal program records. EDGAR provides for a five year retention period. If any litigation, claim, negotiation, audit or other action involving the records has commenced before the end of the five year period, the records must be retained until completion of the action and res-olution of all issues or until the end of the five year period, whichever is later.

The following is a listing of federal educational programs covered by these EDGAR provisions:

Education of Handicapped Children in State Operated or Supported Schools (89-313)

• Chapter I - Basic Grant

• Chapter I - Migrant

• Chapter I - Neglected and Delinquent

• Education of the Handicapped Act PL 94-142

• Public Library Services (LSCA 1)

• Library Services and Construction Act (LSCA 2)

• Interlibrary Cooperation (LSCA 3)

• Carl D. Perkins Vocational Education Act

• Transition Program for Refugee Children

• Chapter 2

• Removal of Architectural Barriers to the Handicapped Emergency Immigrant Education Assistance

State Grants for Strengthening the Skills of Teachers and Instruction in Mathematics, Science, Foreign Languages and Computer Learning (EESA, Title II)

• EHA PL 99-457 Preschool Grants

• Drug Free Schools and Communities Act of 1986

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CHAPTER 22

AGENCY FUNDS/TRUST FUNDS(STUDENT ACTIVITY FUND)

INTRODUCTION

The Agency Fund (Student Activity Fund) is used to record receipts and expenditures for student body organizations. While no school district funds are normally used to subsidize these operations, the financial transactions are subject to the same controls as other funds. In addition, the agency fund may be used:

a. To record returnable fees collected by a school, such as deposits on books, locks, or locker rental.

b. To temporarily record non-returnable fees, such as school lunch collections, athletic fees, music fees, or driver education fees until these revenues are turned over to the district for placement in appropriate funds.

This fund is accounted for only as balance sheet accounts in the school district's accounting system. However, detailed records of revenues and expenditures must be maintained in auxiliary accounts at the sites responsible for the accounts. Program, project and/or location /organization dimensions may be used to differentiate between various pupil organizations. The detailed accounting records maintained at the sites are not required to use the same level of W.E.S.S.A.S. detail as district operating accounts.

Agency funds are Fiduciary Type Funds. The assets of an agency fund are held by the school dis-trict as an agent, not as an administrator or manager. Thus, the Board of Education has only cus-todial powers and duties rather than administrative and management responsibilities as is the case in accounting for trust funds. Therefore, an agency fund has only asset and liability accounts. It has no equity accounts. This does not, however, relieve the district administration of responsibil-ity for proper accounting and financial control of these accounts.

Trust funds are of two types: Non-expendable trust funds and expendable trust funds. The amount held by the school district in trust funds is held by the Board of Education as a trustee under the provision of a trust agreement.

Most often, a non-expendable trust fund is created by a gift to the school district that is to be used for the purpose or purposes specified in the trust agreement. A non-expendable trust fund requires the Board of Education to act as the administrator of the fund and to take whatever action is necessary to keep the principal of the fund intact.

A corresponding expendable trust fund must be created with the earnings from the non-expendable trust fund for the purpose of disbursing earnings. The non-expendable trust fund earnings are moved to the expendable trust via an operating transfer. Each trust fund created should be authorized by action of the Board of Education.

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A non-expendable trust fund has asset accounts for cash and for each of its investment and liabil-ity accounts when necessary. The fund equity account should be equal to the non-expendable trust fund principal. Theoretically, this principal amount should not be spent or “wasted.” A non-expendable trust fund does not have revenue and expense accounts that could increase or deplete the trust fund principal.

An expendable trust fund has asset, liability, a retained earnings account and revenue and expense accounts. The retained earnings account reflects the amount of net earnings that are pending dis-positions according to the terms of the expendable trust fund agreement.

I. AGENCY FUND ACCOUNTING OPERATIONS

Accounting for Local Educational Agencies (LEAs) is referred to as fund accounting. A fund is a fiscal and accounting entity with a self-balancing set of accounts: it records cash and other finan-cial resources together with all related liabilities and residual balances. The function of the accounting system is to present fairly and with full disclosure the financial position of the LEA in conformity with generally accepted accounting principles.

There is a continuing debate concerning whether school systems should centralize or decentralize accounting for student activity funds. The primary difference in the two methods is where the expenditures are made. The internal controls on expenditures under either method should be essentially the same.

Ongoing internal audit or financial review is recommended in order to determine whether legal procedures applicable to the control of the Agency Fund (Student Activity Fund) are being fol-lowed and whether funds and property are safeguarded through an effective system of internal control. Auditing is defined as “the process of examining documents, records, reports, systems of internal controls, accounting and financial procedures, and other evidence for the purpose of test-ing their accuracy, truth and authenticity.”

An external auditor is engaged primarily to examine the financial statements of an organization and make a judgment as to whether the statements present fairly the financial position of the orga-nization according to generally accepted accounting principles. Many districts request their exter-nal independent auditors to perform various levels of audit work on student activity accounts. An internal auditor does not perform the same function as an external auditor. Each has an important function to perform. An internal auditor’s role goes beyond that of an external auditor and includes a series of functions:

A. Objectives of Accounting Operations

1. Establish adequate safeguards of public funds.

2. Provide permanent record of financial activity.

3. Relate expenditure pattern to adopted budget.

4. Develop records for planning for future budgets.

5. Furnish data for reports.

6. Verify stewardship to public.

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7. Document compliance with law.

B. Purposes of Internal Audits

1. Protect employees and board.

2. Check for accurate financial records.

3. Provide assurance to public.

4. Determine adequacy of internal controls.

5. Determine adequacy of records.

6. Improve administration and policies.

7. Ensure that board members and school district employees do not have an interest in firms doing business with the school district.

8. Check that bank provides adequate security for deposits.

9. Safeguard district resources.

II. POLICIES CONCERNING PUPIL ORGANIZATION FUNDS

School districts should establish a written policy concerning pupil organization funds. At a minimum, the policy should address the topics covered in the sample policy for student body activity accounts as shown on the following pages.

** SAMPLE POLICY AND PROCEDURES FOR STUDENT BODY ACTIVITY ACCOUNTS ARE INCLUDED AT THE END OF THIS CHAPTER

A. POLICY

The Board of Education shall authorize the establishment of student body activity accounts for the operation and maintenance of student body activities. Student body activities are defined as school clubs, classes and other related activities which orga-nize to raise money and/or promote a particular program, project or subject area. Parent groups such as booster clubs are excluded from this definition and are not a responsibility of the school district.

As student activity account funds are actually school district funds, it is essential that they be accounted for in a manner consistent with other funds of the school district. Therefore, the policy of the Board of Education shall require that the district business official shall establish procedures for the creation, operation and closing of student body activity accounts.

B. PROCEDURES

1. Administration

a) The business official/designee shall have responsibility and authority to imple-ment all policies and rules pertaining to the supervision and administration of student body activity funds in schools under his jurisdiction in accordance with established policies and rules of the Board of Education.

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b) The principal of the school, as trustee, shall be directly responsible for the con-duct of student financial activities in accordance with the policies, rules and procedures set forth by the state, local district and superintendent or business official/designee.

c) The business official of the district is responsible for prescribing appropriate accounting procedures.

2. Creation and Governance

a) Student activity organizations may be created for a specific purpose as outlined in board policy with the approval of the principal and the business official.

b) Each organization must have a faculty advisor, approved by the principal. The official list of organizations and faculty advisors shall be submitted to the busi-ness office before the commencement of school each year and updated as necessary.

c) Each organization must have an advisor designated as the person solely respon-sible for the handling and accounting of the funds. Proper documentation must be maintained.

3. Budgeting and Accounting

a) Each organization must prepare an annual budget of estimated receipts and expenditures. This budget should be reviewed and approved by the principal.

b) Appropriate receipt forms must be used to record the collection of money. One copy goes to the payee, the other should be maintained by the organization treasurer or school office.

c) A ticket reconciliation form must be used to record ticket sales at fund raising events. This form must be returned to the school office with unused tickets. All tickets shall be pre-numbered and accounted for by the faculty advisor.

d) All monies that are raised by a project must be properly receipted and depos-ited daily in the school office. All checks received shall be immediately stamped “For Deposit Only.”

e) Schools should use a safe for protection of money, if possible.

f) No monies may be disbursed from undeposited receipts.

g) Under no circumstances should monies be placed in an advisor’s personal account.

h) The faculty advisor has personal responsibility for monies collected until they are deposited at the school office or turned over to a school administrator for handling. The faculty advisor must receive and retain the receipt of the deposit.

i) Expenditures will be requested via a requisition form or a request for check form, both of which require the principal’s/designee’s approval.

j) The payment to individuals from student activity funds of salaries and fees for services rendered is prohibited.

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k) No personal purchases may be made through the student activity funds for staff members or other individuals.

l) Expenditures from student activity funds for staff’s professional books and periodicals and personal memberships in professional organizations are prohibited.

m) Student activity records and financial procedures are subject to periodic inter-nal audits by the business office.

n) Activity fund financial records and supporting documents should be kept at least seven (7) years.

o) The business official shall establish receipt and expenditure accounts within Fund 60 for each organization, utilizing locations, functions and objects pro-vided in WESSAS.

p) The school secretary shall provide the business office with a monthly status report of each activity account showing beginning balance, receipts, expenditures and ending balance for each account.

q) No organization shall be allowed to operate with a negative balance in its account. Special exception may be made with the approval of the principal or business official based on a reasonable expectation that such negative balance is a temporary condition that will be corrected timely by incoming receipts.

r) It is the responsibility of the faculty advisor to reconcile activity records with general ledger information provided by the school secretary.

4. Inactive Accounts/Disposition of Funds

a) An account may be considered inactive after twelve consecutive months with-out financial activity.

b) Inactive accounts may be closed at the request of the school principal and the funds transferred to the district general fund.

c) The treasury of a graduating class shall be closed out no later than one (1) year after graduation of the class and the money transferred to the general fund.

III. CRITERIA FOR EVALUATING THE INTERNAL CONTROL OF AUDITING

While hiring a full-time internal auditor may not be practical for many districts, many of the internal audit procedures can be carried out by the business official or business staff.

Once the internal auditing function has been established and the assignment of auditing student activity funds has been made, the preparations for conducting an audit may begin. The following standards may serve as a basis from which the specific guidelines can be developed to plan, prepare and present an audit of student activity funds.

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A. Cash Receipts

1. Records are maintained for all receipt books and other numbered forms are used in acknowledging the receipt of cash.

2. Copies of voided receipts are retained.

3. Issuances of receipt books listing sheets and sub-receipt books to individuals and activities are properly recorded and controlled.

4. Cash is turned in by individuals and activities identified with the numbered receipts acknowledging initial receipt of the monies.

5. Cash receipts are recorded promptly when received.

6. Details as to the number of items receipted and the unit price per item are included in the receipt.

7. Cash deposits made are prompt and are intact.

8. Personal checks are prohibited from being cashed by associated student body funds.

9. Cash receipts from student fund-raising activities are turned in or deposited promptly.

10. The cash over/short account is properly used and the controls imposed by the school district are observed.

B. Cash Disbursements

1. Cash balances are reconciled with bank balances monthly and detailed items listed on bank statements are recorded on the books.

2. Voided checks are retained.

3. Expenditures are approved by the student activity groups and the proper three persons: the advisor together with student representatives or officers.

4. Cash expenditures are supported by a vendor’s invoice, a notation indicating receipt of materials or services, and authenticated purchase orders if required.

5. Disbursements by check are properly signed and are they in agreement with the information recorded in the journal.

6. Disbursements from petty cash are properly supported by vouchers or receipts.

7. Distribution of cash expenditures is being correctly charged to the proper accounts.

C. Sales and Activities

1. Revenue-producing activities are in accordance with those approved by the school district.

2. Adequate control is exercised by supervisory personnel over student fund-raising activities to ensure that such activities are in keeping with the intent of the program.

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3. Pre-numbered stationery is printed by an outside vendor.

4. All records of sales such as receipt books and register tapes are reconciled to the cashier’s receipt for monies received.

5. Student store inventories are reviewed regularly to determine propriety as to character and quantities.

6. Revenue and expenditure statements for the student store are reviewed periodically.

7. Completed meeting minutes by the student council or other activity groups are prepared on a timely basis and properly reflect approval of activity expenditures.

D. Purchases

1. Items of purchase are in accordance with the intentions of the student program and they are reflected in the minutes or activity fund records.

2. Associated student body monies are spent only to enhance the welfare of the general student body and not to benefit any individual.

3. Approved purchase orders, whether voided or not, are maintained in a file.

4. Contractual obligations are properly authorized and are kept within established limits.

5. The purchase of major equipment items are properly recorded in the equipment account.

6. Proper controls exist to prevent expenditures in excess of funds available for a particular activity.

7. Timely payments are made on all purchases on account.

E. Financial Statements

1. Monthly reports of financial transactions of various trust and club accounts are prepared and submitted to the appropriate administrators.

2. Periodic financial statements of budgeted and actual revenues and expenditures are prepared and submitted to appropriate administrators.

3. A balance sheet is prepared at the end of each year.

4. The funds and annual financial report of the student organization are audited annually by an independent auditor.

5. Bank accounts are reconciled monthly.


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REFERENCES

Principles of School Business Management. R. Craig Wood, ed., ASBO International, Reston, Virginia. 1986.

Internal Audit Guide for Student Activity Funds. Reston, ASBO International, Reston, Virginia. 1986.

WESSAS Handbook. Wisconsin Department of Public Instruction, Madison, Wisconsin. 1992.

American Institute of CPA’s: www.aicpa.com: Literature and courses on internal control.

“Policies and Procedure Manual for Accounting and Financial Control,” Douglas Kurz and Dawn Rhodes, Published by Prentice Hall, 1992.

“Internal Auditing for School Districts,” Charles Cuzzetto, Published by ASBO, International, Reston, Virginia, 1993.

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ADDENDUM TO AGENCY FUNDS/TRUST FUNDS

"Example" School District

STUDENT ACTIVITY FUNDSMANUAL

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APPENDIX I

APPENDIX ISAMPLE POLICY AND PROCEDURES FOR STUDENT BODY ACTIVITY ACCOUNTS

INTRODUCTION

This manual is designed to provide a set of standardized accounting procedures for the adminis-tration of student activity funds in all schools in the Oshkosh Area School District. Adherence to these guidelines and procedures is expected from all district staff and students. All monies that are handled for bookkeeping purposes by school building personnel are considered student activ-ity funds. All student activity funds are considered to be assets of the district. The student activ-ity records should be up-to-date at all times and are subject to audit at any time without warning. The Superintendent/Designee may request any or all funds be remitted to the Business office and all transactions would then flow through the Business Office.

These guidelines and procedures reflect existing state statute, School Board policies, current administrative procedures and good business practice. They are intended to protect the building administrators, the respective staff members who are responsible for maintaining student activity fund financial records, the students, and the district.

PROCEDURES FOR THE ADMINISTRATION/MANAGEMENT OF STUDENT ACTIVITY FUNDS

I. ADMINISTRATION

A. The Superintendent/designee shall have responsibility and authority to implement all policies and rules pertaining to the supervision and administration of student activity funds in schools under his/her jurisdiction in accordance with established policies and rules of the Board of Education.

B. The principal of the school shall be directly responsible for the conduct of student financial activities in accordance with the policies, rules and procedures set forth by the state, district and Superintendent.

C. The Controller of the District is responsible for prescribing and monitoring appropri-ate accounting procedures.

II. MANAGEMENT

A. Clearance of Money Collected from Pupils - All money collected from pupils on school premises shall be processed through the office.

B. Signatures on Checks - The principal of each school shall designate two persons including himself/herself who shall be authorized to sign checks withdrawing money from the bank account or accounts. Two authorized signatures are required for all withdrawals. This rule applies to savings as well as checking accounts. Persons sign-ing checks shall require supporting evidence and shall initial the invoice and statement

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accompanying each check before signing the check. Signing blank checks is prohibited, and such action makes the signer personally liable.

C. Personal Checks - Personal checks may not be cashed for anyone. Personal checks may be accepted, however, when they are for the exact amount due the school.

D. Loans and Accommodations from Student Activity Funds - Student activity funds shall not be used for any purpose that represents an accommodation, loan, or credit.

E. Contracts and Other Payments - Student organizations may obligate themselves by contract for the purchase of equipment, supplies, or services through the purchase order system. Funds should be remitted to the district business office and payment will be processed through the district operating fund accounts. Any agreement with a vendor in excess of twelve (12) months must be reviewed and approved by the busi-ness office.

The payment of salaries/stipends to district employees from student activity funds is prohibited. Records must be maintained, including social security number, for tax pur-poses of any payments for services (salaries/stipends) to independent contractors.

Expenditures from student activity funds for professional books and magazines and personal memberships in professional organizations is prohibited.

F. Audits - Student activity records and financial procedures are subject to periodic inter-nal audits by the Business Office and to outside audits by independent auditors.

G. Protection of Funds - The following rules should guide all employees who are custodi-ans of Board of Education and student activity funds:

1. Receipts are to be written in a pre-numbered receipt book. A receipt shall be writ-ten any time money is transferred from one person to an activity account. A receipt is to be written by the person receiving the money and given to the person presenting the money at the time the money is transferred.

2. No school employee shall keep student activity funds overnight on his or her per-son or in the personal bank account or at any other place.

FACULTY/ADVISOR RESPONSIBILITIES FOR FUND RAISING ACTIVITIES

A. The faculty member/advisor in charge of the fund raising project is responsible to the principal for preparing and maintaining sales and financial records.

B. All money that is raised by the project must be properly receipted and deposited daily in the school office.

C. No money may be disbursed from receipts waiting to be deposited. No cash payments shall be made from activity funds.

D. No money may be deposited in the advisor’s personal checking account.

E. The faculty member/advisor is personally liable for all money collected until it is deposited at the school office, or in night deposit (bank), or turned over to a school administrator for handling. The faculty/advisor who deposits money in the school

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office or turns over money to another school employee is responsible for securing a receipt for the exact amount of money transferred at that time.

I. RETENTION OF RECORDS

Activity fund financial records shall be kept a minimum of seven (7) years after audit.

II. CASH HANDLING PROCEDURES

A. Student Activity Funds - All monies that are handled by school personnel are consid-ered to be student activity funds for bookkeeping purposes. Student activity funds include but are not limited to funds raised by student groups, athletic funds, student fees, and sale of supplementary materials.

B. Bank Account

1. Each school shall have its own bank account for the purpose of depositing and dis-bursing activity funds

2. The only authorized signatures are those of the principal and assistant principal/designee. Two signatures are required for withdrawals from either the checking or savings account. The designee must be a separate individual from the person responsible for the bank statement reconciliation.

C. Receipts

1. Pre-numbered receipts must be used and accounted for in numerical order for auditing purposes.

2. Do not destroy VOIDED receipts. Keep both copies of the receipt.

3. Pre-numbered receipts must be issued for all money received at the school office.

4. The person issuing the receipt must count all money at time of receipt.

5. One receipt may be issued to a person turning in money to the school office, received from a group collection; however, the person turning in the money must have a detailed record of the group collection.

6. All checks received shall be immediately stamped “For Deposit Only”.

D. Deposits

1. All receipts must be deposited promptly with daily deposit being the recom-mended practice. No employee shall keep any amount of student activity funds overnight except those funds properly receipted and stored in the designated school safe.

2. Schools shall use the bank night depository for receipts from night activities. Money is not allowed to be taken home by an advisor in charge, or by any other school employee. The advisor assumes personal responsibility until funds are deposited.

E. Disbursements

1. All disbursements must be in form of a check.

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2. All check requests must be signed by the advisor for the activity and initialed by the principal or his designee indicating approval.

3. Check requests must be accompanied by supporting documents such as invoices, sales slips, letters, etc.

4. Use of cash collection for disbursements is prohibited. There shall be no cash pay-ments from student activity funds for any purpose.

5. Principals should not reimburse themselves for school expenditures through the student activity account. Any reimbursements of this type should be processed through the business office.

F. Bad Checks

1. Call the maker of a bad check and make a note of the conversation. All returned check fees are the responsibility of the maker.

2. Before accepting a new check from the maker of a bad check confirm with the bank that funds are available. If someone has multiple instances of bad checks, the school may, at the principal's discretion, require all transactions to be cash.

3. Treat the check reversal by the bank as a negative receipt for the amount of the check plus any fees charged by the bank. When the replacement check (or cash) is deposited it should be treated as a new receipt.

4. If there is no response from maker of the bad check within seven (7) days of the initial call, the principal should send a follow-up letter.

G. Student Instrument Rental Fees and Fines - All Instrument rental fees and student fines must be forwarded to the Business Office at least monthly. These accounts must be at a zero balance at the end of each school year.

H. Investments

1. The principal may invest activity funds.

2. Activity funds may be invested only in the types of securities that are qualified for investment of school district funds in accord with Wisconsin Statutes and are sub-ject to annual financial audit review.

3. Interest earned from such investments may be prorated to the various activity fund accounts or credited to a central activity fund. (General account)

I. Transfers Between Accounts - All transfers between accounts must be authorized in writing by the principal and the advisor(s) for the activities. The documentation should include an explanation of why the transfer is needed and any receipts, invoices, or checks associated with the transaction.

J. Discontinued Activity Groups

1. The principal is authorized to close out balances in activity accounts that no longer are active. The principal should document the reason for closing the account and submit it for approval to the Controller.

2. These balances may be transferred to other student activity accounts or to a general activity account upon written approval of Controller.

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K. Reporting

1. Preparation of bank reconciliation reports must be completed and submitted to the district business office prior to the 20th day of each month. This report should include a summary of each activity fund's beginning balance, receipts, disbursements, and ending balance.

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CHAPTER 23

SITE-BASED MANAGEMENT

INTRODUCTION

Site-based management is an educational philosophy that has existed for decades: that local con-trol of schools improves educational quality. It is generally defined as a system where the individ-ual school building is the focus of educational decision-making as contrasted with central administration. The school becomes the primary unit of management and educational improvement. Instead of decisions coming from the top (superintendent) down (principals and teachers), under site-based management, decisions come from the bottom up.

The Superintendent and other central office administrators and support staff become support per-sons with most of the decision-making carried out in the individual schools. Allowing decisions to be made as close to the classroom as possible is considered a powerful strategy for improving the delivery of educational services. It is thought that those most familiar with the day to day opera-tion are better able to assess needs. Participation in decision-making by teachers, parents, the community and even, in some cases, students will instill a sense of pride and ownership in the school. It is believed that increased authority at the school site facilitates stronger student achievement and will lead to better accountability.

I. SITE-BASED MANAGEMENT: AN OVERVIEW

While site-based management programs will vary from one district to another, there are characteristics common to all of them. One of the major changes involves school district personnel. The literature identifies some general changes that personnel at both the central office and school levels might experience.

A. School Board

The school board provides direction through writing broad educational philosophy and mission statements. In order for site-based management to succeed, the school board must be positive thinking and supportive.

B. Superintendent

The superintendent is the key person in initiating site-based management. While remaining chief administrator, the superintendent must delegate power both in theory and in practice. There is a change in the relationship between the superintendent and principals in that the role of the superintendent becomes one of support rather than the traditional top-down structure.

C. Site-Based Manager

Some districts appoint a director of site-based management who reports directly to the superintendent on all site-based matters. Usually, this manager and the superintendent are the only administrators who have the authority to say “no” to a principal.

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D. Central Office Administrators and Staff

Central office administrators and staff become supporters and facilitators rather than supervisors. Their roles are to provide technical support, access to information, and assist the school board and the superintendent in developing long-range plans. The specific role of the business manager will be discussed later in this chapter.

E. Principals

The principal experiences the most dramatic role change. While the authority and responsibility of the principal expand, that person must learn to share power to operate in this new structure. The principal is in a difficult situation, having to share power while at the same time holding ultimate responsibility. Strong leadership by the princi-pal is essential to the success of the plan. The principal must be in total support of this type of change. The program’s success depends on this leader’s ability to accomplish the following tasks:

1. Obtain and maintain a positive school climate

2. Engender high standards

3. Facilitate the process of strategic planning

4. Coordinate the school improvement plan

5. Promote the decision-making process

6. Train staff and other participants

7. Trouble-shoot problems

8. Evaluate performance

9. Represent site-based team at district activities

F. Teachers

The role of teachers is significantly enhanced professionally under site-based management. Site-based management gives them the ability to have impact over deci-sions that affect their work. Teachers exhibit a wide-range of reactions regarding their role, from being anxious to participate to having no desire to at all. Some difficulties teachers may experience include:

1. Anxiety

2. Impatience with the slowness of group decision-making

3. Finding the process too time-consuming

4. Lack of influence over substantial issues

However, it is felt that empowering teachers will increase feelings of professionalism among the staff, contribute to personal commitment, provide a feeling of ownership, encourage re-examination and new learning, shorten response time, minimize manage-ment by “surprise,” improve collaboration, mold school to community, and enhance accountability.

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G. Support Staff

Other members of the school staff can and should become a part of the site-based man-agement process in a school district. These staff members can provide valuable input, appreciate a share in the empowering of employees, and can make a valuable contribu-tion particularly within their areas of expertise. Including representatives from the sup-port staff on the school-site committee is important to ensure complete participation of all school personnel.

H. Parents and Community Members

Beyond the involvement of the staff of a school, site-based management should include a commitment to utilize the school community, both parents and other commu-nity members, in the process. The inclusion of these players in the decision making process results in a greater acceptance of the actions taken at each site by the commu-nity as a whole and lends more credibility to the decentralization of the decision mak-ing process. The extent of the involvement by parents and community members may differ in each school, but is an important component of site-based management.

II. IMPLEMENTING SITE-BASED MANAGEMENT

Site-based management must be explored carefully by any school district considering its implementation. Careful consideration should be made to the following assumptions, which are often made by proponents of site-based management, since they may not be true in all cases or in a particular district at a given point in time:

A. A common assumption is that improvement in productivity will come about with more teacher, parent, and student control. Power struggles between principals and site councils, for instance, cannot improve productivity.

B. The second assumption is that there is a surplus of building-level experience just wait-ing to be utilized. Principals may be required to make financial decisions for which they are not schooled. Principals would have to spend time away from their leadership roles in curriculum, evaluation and discipline. Also, teachers might not be committed to spending extra time on budget preparation.

C. The third assumption is that the building level provides a perfect setting for parents, teachers, and the principal to work together toward structuring the local building bud-get without digressing from the instructional needs of the students. However, it is sometimes difficult to focus on the task at hand. When parents have the principals and teachers’ attention, they may view this time as an opportunity to air individual com-plaints or champion causes.

These potential problems must be considered before implementing site-based management. The following areas should be explored to successfully implement a site-based management plan:

A. Administration - the school board, superintendent and other administrators must be solidly behind the new plan.

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B. Training - a substantial investment of time and money must be made in training during the early years of implementation.

C. New budgeting practices - to be effective, site-based management must include site-based budgeting. The emphasis shifts from allocation by formula (X dollars per pupil) to allocation by objective.

D. Time - implementing a system of site-based management takes time, years not months. It is not a quick fix.

E. Access to information - central office administrators are responsible for ensuring that schools receive accurate and timely information.

F. Communication - this system is an inclusionary process under which principals, teachers, parents, and community members make significant decisions. Collective bar-gaining agreements may need to be adjusted. Communication between everyone involved with the schools must receive top priority.

Once a decision is made to implement site-based management, the following steps should be taken:

A. Develop awareness throughout the system - Provide training so that all concerned can learn as much as possible about site-based management.

B. Determine that the district is ready - Communicate with all persons involved to be sure that they are committed to the process and have the same expectations.

C. Secure outside help - Use a consultant experienced in site-based management to guide the district.

D. Establish a development committee - Include teachers, parents, administrators, and community members.

E. Survey and assess - Determine the educational aspirations of the community, strengths of the schools, as well as any unmet needs.

F. Set objectives and goals - The district establishes educational objectives while local schools set their own goals.

G. Decide on a time line - Build in a generous amount of lead-time for training, selection of school-based committees, improving access to information, and setting up new bud-get procedures.

H. Decide on an approach for implementation - Pilot-test in a limited number of schools or implement the program in all schools. It might be wise to implement the program in a few schools whose principals are the most enthusiastic about the plan.

I. Train - All persons involved will need special training.

J. Implement the program - Try to decide on some issues that can provide immediate and visible indications that the program is working. For example, while the committee is grappling with the problem of improving reading scores, it might also find a way to handle public address announcements so that they would be less intrusive.

K. Monitor, evaluate, adjust - Try to have a monitoring system in place to make minor changes as problems arise.

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Establishing a school-site committee for each school made up of the principal, some teachers, some support staff, parents, community members, and, in some cases, students is an important step. The make-up of this committee ensures a large degree of formal participation.

One of the committee’s duties is to establish by-laws that outline procedures and regula-tions to be followed. The authority of this committee varies in different districts from act-ing only in an advisory capacity to having the authority to fire the principal. The committee must decide on a decision-making process with consideration for which deci-sions should be made by a consensus of opinion or by the majority, allowing for dissenting opinions.

Site-based management has its pitfalls. Some obstacles to the success of every new pro-gram that may need to be overcome are listed below:

A. Expectations that are too high - This plan cannot solve all the problems; but it can increase involvement in decision-making and can lead to better decisions.

B. Changing roles and relationships - Changing to new roles is difficult. The new roles need to be defined. The division of authority between central office and the school level needs to be clarified.

C. Inappropriate “downsizing” - It may appear that with more decisions being made at the school level, fewer administrators will be needed. Every effort should be made to ensure that reducing administrators does not jeopardize the program.

D. Collective bargaining agreements - Some changes may be necessary in the district’s collective bargaining agreement; however, many districts have managed to negotiate contracts that foster site-based management.

E. Inaccurate beliefs about equity - Some districts have insisted that all children follow the same program; but, when equity is synonymous with uniformity, some children will be short-changed.

F. State initiatives - In some cases, districts will need to work with state departments of education to ensure that state-mandated objectives will be met but sometimes without the state-mandated procedures.

G. Skepticism - Try to assist from principals, teachers, and other staff members in over-coming their fears and criticisms by involving them early in the development of the program.

H. Lack of resources - Additional expense is required to cover the costs of training, extra substitutes to fill in for teachers and compensation for teachers for time spent outside of school hours.

To make site-based management succeed; there must be trust, time, and training. Administrators must learn to trust their staff, to give the ball to others and let them run with it. Sufficient time must be allowed. Site-based management should be consistent with a district’s three-to-five-year strategic plan. Setting up the complete site-based manage-ment program could take five to ten years. It is important that training programs be set up for all personnel involved in site-based management. Expectations must be realistic.

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III. RESPONSIBILITIES OF THE SCHOOL

Under site-based management, authority is given to the individual school in the areas of budget, curriculum, and personnel.

A. Budget

Site-based budgeting assumes that local personnel are better informed about the resource needs of students and can expend funds in a more efficient manner than through a central administrative office. Site-based budgeting can be handled in various ways. In Rochester, New York a particular item can be considered within the purview of building decision making if

1. The school has control over the expenditure.

2. The expenditure has a direct bearing on the schools instructional program.

3. The accounting costs do not exceed the net value of the service or item.

4. There is not a significant cost-saving advantage to maintaining district central office control of the service or item.

The school-based planning team at one pilot site in Rochester takes charge of 14 spe-cific areas.

1. Instructional staff

2. School-level support staff

3. Extra-curricular activities

4. Extra-curricular pay differentials

5. Substitutes

6. Interscholastic sports

7. Supplies

8. Materials and services

9. Staff development

10. School-based planning activities

11. Clerical and security overtime

12. Equipment repair/service contracts

13. Equipment rental

14. Equipment, library books, textbooks

In most districts school principals have complete control over their budget including the ability to set up special programs, move funds between accounts as deemed necessary, and hire staff. The funds for utilities such as gas, oil, and telecommunication are early choices for transfer to the school. In some schools, if the school has control of capital fund allocations, they would be in a position to evaluate trade-offs. For example, the school

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could improve insulation to save fuel. There is, however, a lack of data to show whether increased efficiency of consumption outweighs savings made through bulk purchase. Most districts agree that maintenance, foodservice, and transportation are better placed under the management of the central office. In many districts the school assumes authority over the cleaning and grounds-keeping staffs.

B. Curriculum

Site-based curriculum development refers to decisions made regarding offered or methodological applications. It covers a broad range of matters from the overall phi-losophy of the district to the structure of the school and ending with the selection of text and library books. Under site-based management some schools have the ability to plan openly with no constraints. Others are limited to following required courses, stringent adoption policies, and state-mandated testing programs. Most schools fall somewhere in the middle. They have latitude in their planning as long as they adhere to certain district and state mandates. In the move toward devolution of operational matters, how to teach and how to manage have been placed under the jurisdiction of the school with what to teach remaining a centralized decision.

C. Personnel

Personnel decisions in site-based management are made based upon the idea that local schools should choose what kind of staff will be working there if that staff is to be held accountable for student performance. In some districts site-based management gives school committees complete authority over the composition of and hiring of staff including teachers or even the principal. However, when a position becomes available, the site-based committee is often required to select an individual from a list prepared by the central office. The principal or school committee may also have the discretion to shift personnel within the school.

Funds for substitute teachers are typically one of the first items to be allocated to schools, thus, encouraging a more efficient use of funds. If schools reduce their need for substitutes by reducing absenteeism or covering for one another, those funds may be used for other purposes. Allocation of funds for staff development may also be transferred from the central office to the school. This allows a closer matching of development programs to school and staff needs as well as a more appropriate sched-uling of events.

IV. RESPONSIBILITIES OF THE CENTRAL OFFICE

Decisions that require uniformity for purposes of efficiency, economy, or understanding should be made at the central level. Operations that are non-instructional and system-wide, not easily assigned to individual buildings, and those of such magnitude that they benefit from economies of scale should be handled centrally.

A. Risk management program

The district may transfer some power and authority to individual schools, but under “respondent superior” and other legal tenets, the district will still share heavily in

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errors made at the school level. School personnel must provide adequate supervision and instruction and must maintain school facilities and equipment in good repair. The legal theory of “respondent superior” (the master is responsible for the acts of the ser-vant) is applied if a staff member commits an “error of judgement” or a principal vio-lates “reasonable trust.” An employee’s alleged negligent performance of assigned duties usually results in district as well as individual liability. Transferring much of the power of decision-making to the schools may invite problems in the existing district-wide risk management program. Some districts have chosen to hire a “risk manager” to oversee the establishment of risk management programs in each school.

B. School maintenance

Maintenance often involves infrequent activities, like the replacement of a roof that may have considerable cost. The centralization of the maintenance function has been seen as beneficial for several reasons.

1. The limited resources available can be applied uniformly to all of the school sys-tem’s buildings.

2. Centralized maintenance relieves the building administrator of the responsibility of overseeing the completion of maintenance work. Experts and selected craftsmen can better handle the task of identifying, scheduling, and completing maintenance needs. When the maintenance item has some impact on the curriculum program or the health and safety of students and staff, the building principal should have strong input.

Some specific maintenance functions are best handled centrally such as painting of buildings, roof maintenance, heating and ventilating systems, grounds repair, and boiler room operations. Special reserves must be available to meet unforeseen safety or health problems. Required plans for asbestos control and radon testing must be addressed centrally to be in compliance with federal law.

C. Psychological and Social Services

Traditionally psychologists and social workers have been hired by the central office and provide service on an on-call or scheduled basis. Under decentralization, staff may be assigned to an individual school, schools may hire such staff, or services may be purchased from either the central office or private practitioners.

D. Transportation

Due to the district-wide nature of the service, the central office is in the best position to handle transportation.

E. Capital Outlay

Capital expenses are quite variable from year-to-year and school-to-school. Their allo-cation is centrally controlled and allocated according to need.

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F. Collective Bargaining

School-based management has not resulted in a formal shift of the bargaining unit from one level to another. In a number of cases, teachers’ unions have adapted the con-tract to meet individual school needs.

G. Utilities and other services

While some schools take responsibility for utility costs, these services often can be purchased more efficiently on a centralized district basis. The central office is best pre-pared to purchase heating oil on a volume basis, arrange for garbage collection, pay the water and electric bills, adjust for changes in postage and telephone billings, and develop energy management plans.

H. Purchasing of common supplies

Under site-based management some schools handle all of their purchasing of supplies. In large districts it may be more cost-efficient to handle supply purchases on the cen-tral level.

V. THE ROLE OF THE BUSINESS MANAGER

The adoption of an ambitious site-based management program demands that the school business manager assume a dramatically different role within the district. Anticipating what this role will entail and learning the appropriate skills will be necessary for the busi-ness manager to succeed in this new arena. The business manager will have an important place in a decentralized plan. As budget matters become more school-centered, the busi-ness manager will be the key central office administrator to deal with the different schools. This administrator will achieve an initial familiarity with each school principal, staff, particular program, and school culture. As school-based management is implemented and extended into the areas of curriculum and personnel, the business manager will become the pivotal contact person with other central office personnel.

If the school business manager is also the district director of union/management relations, it may be necessary for this administrator to obtain an agreement from union officials con-cerning flexible hiring practices. The school business manager may also be expected to anticipate and/or reconcile individual school site decisions that may be in conflict with state and federal fiscal accounting or personnel action regulations.

School-based management may provide the following benefits to school business operations.

A. Allocations reviewed and assigned at the building level permit a closer review of expenditures with funding dealt with in smaller, better understood, and more manage-able parcels.

B. If financial inducements such as voluntary utility cost savings are offered by the busi-ness office to encourage efficiency, the individual schools may be able to increase their discretionary budgets through a partial carryover guarantee on their savings, thus, reducing the overall district costs.

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C. More creative and customized expenditure solutions to school site needs may result from a closer relationship between the business manager and school budgetary personnel.

D. As the business manager becomes increasingly familiar with each school’s programs, the opportunity may arise to design and devise revenue enhancements such as obtain-ing individual school grants while assisting each school in avoiding occasional redun-dancies or mistakes in budgetary matters.

E. School-based management may allow the business manager to deal more coopera-tively with teacher unions and other organizations. Some unions have reserved wage and benefit agreement for negotiation while dealing with individual site committees on some working conditions and regulation agreements.

The business office will most likely continue to be responsible for

A. Spending on a district-wide basis,

B. Accountability for expenditures with auditors,

C. Compliance with federal, state, and local laws, and

D. Compliance with accounting standards.

School site budget flexibility as well as school site personnel and curricular decision-making may impinge on local, state, and federal regulations and reporting or accounting specifications. The school business manager will be required to maintain sufficient flexi-bility in budgetary records to translate them into required uniform formats for statutory reporting. Also, the existing accounting system may have to be revised to open up more account codes such as identifying costs in particular subject areas or even establishing an account for individual teacher expenditures.

Keeping track of position changes and switches at the school level will be a major area of concern. It will be necessary to have a position control system, which keeps track of shifts of full-time positions between teachers, instructional aides, and substitutes. Also, with site-based management more informational requests will come from principals as schools seek such information as a school profiles or information on comparable costs for similar items in other schools.

Since taxpayers will continue to demand that schools be cost effective, the business man-ager will have to retain some control. With equipment like copying machines and microcomputers, the best approach might be to offer schools a district approved list with proven reliability providing a fiscal incentive through district-wide purchasing. A basic service philosophy could also be applied to such areas as computers, telephones, and printing with each school being assured a basic level of service with schools having the authority to supplement the basic service from their school level allocations.

In a site-based environment, the school business manager can no longer “control” the money and “run” the decisions. Instead, the role becomes one of service with a focus on student performance, creative problem-solving, building coalitions, encouraging entrepreneurs, teaching fiscal mechanics, and participating in the evaluation process.

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The Texas Association of School Business Officials has identified the following roles for the business manager.

A. Trainer of principals, site councils, and others on such operations as the budgeting process, accounting codes, accounting rules, and purchasing laws

B. Technical assistant to the principal during early implementation

C. Broker of certain services to schools particularly when schools have choices of outside vendors

D. Liaison between school site personnel and central office personnel in business matters

E. Monitor of federal, state, and local regulations

F. Reviewer of school expenditures

G. Consultant to schools on methods to increase discretionary budgets and generate surpluses.

H. Reviser of cost centers and budgetary procedures

I. Provider of information flow from the data processing system through existing or new technology

J. Assignor of allocations to school sites

K. Researcher on formulas, ratios, averages, and other factors used in school allocations

L. Planner of central support operations such as maintenance, transportation and other services

The business manager must also become familiar with the non-budgetary aspects of site-based management as follows:

A. Be involved in the development of a mission statement

B. Understand the instructional side

C. Understand the impacts of site-based management on student performance

D. Understand the curricular implications

E. Understand personnel decisions and work with instructional personnel in hiring staff to meet the needs of specific programs and specific schools

F. Attend building committee meetings

G. Provide information - It is important to gather appropriate data such as research, test scores and a history of existing site-based districts across the country.

H. Provide the time and resources - Provide release time or pay teachers for curriculum work. Resource availability demonstrates commitment.

VI. ADVANTAGES OF IMPLEMENTING SITE-BASED MANAGEMENT

A. Formally recognizes the expertise and competence of those who work in individual schools to make decisions to improve learning

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B. Gives teachers, other staff members, and the community increased input into decisions

C. Improves morale of teachers, because staff members see they can have an immediate impact on their environment

D. Brings both financial and instructional resources in line with the instructional goals developed in each school

E. Nurtures and stimulates new leaders at all levels; superstars emerge from the process

F. Increases both quantity and quality of communication which is more likely to be infor-mal in face to face meetings

G. Brings school and community together

H. The resources of the school district are used more effectively where they are needed.

I. School-based management may conserve money since the principal and school staff has more incentive to conservation items such as energy. However, the funds saved would not necessarily reduce the district budget overall as they would be expended for other school needs.

J. Better decisions are made and are better supported because parents, faculty, and stu-dents have a meaningful opportunity for involvement before a decision is made.

K. There is a greater chance of productive innovation under school-based management since each school is allowed greater freedom to try new approaches to educational management.

VII. DISADVANTAGES OF IMPLEMENTING SITE-BASED MANAGEMENT

A. Little hard data has been collected about the actual impact on students and teachers or on the costs and benefits of the program. Evaluations tend to focus on the process rather than on outcomes.

B. Procedures vary significantly from district to district and school to school, so it is diffi-cult to obtain from the literature a set of guidelines that will ensure a successful program.

C. When the initial members of the site-based committee in a school decide to bow out, there needs to be other interested teachers and parents ready to take their place.

D. When a site-based committee is allowed to develop programs peculiar to one particular school, parents in other schools may become dissatisfied. For example, if one school decides to hire a specialist to assist at-risk students, will the parents in other schools pressure the district for a similar program? Who will provide the funds to extend such a program district-wide?

E. If much of the power of school decision making and operations in transferred to indi-vidual schools, problems may occur in the area of district-wide liability prevention and risk management programs.

F. Problems may arise in contractual matters since principals are not automatically duly authorized agents unless given that power by action of the school board.

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G. Much time and energy is needed to plan team meetings, hold community hearings, and maintain accurate documentation. Team members unfamiliar with accounting procedures, regulations, and technical language will need to seek guidance from the district business office.

H. Site-based management will put additional burdens on the budget. A few areas repeated in the literature include:

1. Staff may need to be reimbursed for extra time spent in planning meetings.

2. Extra clerical help may be needed.

3. Additional dollars may be needed to train site-based teams and to hire additional business office and budget office personnel to consult with and support the individ-ual teams.

I. Most writers agree that maintenance should remain a function of the central office. If principals are given full authority concerning maintenance matters, problems may arise. The following questions are illustrative of some of the issues that may occur:

1. How will funds be allocated – per pupil, per square foot or by building?

2. Will principal be the final authority on how funds are expended?

3. Who will identify maintenance needs?

4. How will the school district ensure economy of scale/volume in bidding projects?

5. Who will be allowed to tender bids?

6. Which maintenance projects will be bid by building staff and which by the mainte-nance department?

7. How can school boards guarantee adherence to proper legal procedures when bid-ding is done on the school level?

8. Can building principals sign valid contracts for goods and services?

9. Can principals use funds from outside sources such as PTA or band booster groups to complete maintenance projects?

10. Who is responsible for inspecting work if central office is not responsible?

11. What kind of staff development will be needed to assure that building decision-makers are knowledgeable concerning maintenance matters?

12. How can school boards guarantee that preventive maintenance is completed in a regular and timely fashion if individual schools make the decision as to how funds are expended?

13. Will the building principal need extra staff to properly take care of maintenance matters?

VIII. SUMMARY

The State of Wisconsin paved the way for site-based management during the 1991-1992 legislative session by its mandate approved in Wisconsin Statute 118.013 which outlined the legal requirement for every school district to participate in training concerning school

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based management. Each school in the state was required to form a representative team composed of school board members, administrators, teachers, parents, and students to par-ticipate in a training session on management restructuring. The training was conducted in each of the Cooperative Educational Service Agencies (CESAs) under the auspices of the Department of Public Instruction (DPI).

During the 1993-1994 school year, if the representatives who participated in the training sessions agreed, they were to meet to develop a management-restructuring program. If there was agreement by two-thirds of the teachers at a school, the implementation of the program was to begin in the 1994-1995 school year unless a different timeline was specified. However, the process was only be implemented by mutual agreement of the parents, board of education, the teachers’ association, and the administration. A small amount of grant money was made available to schools to facilitate planning. Wisconsin, then, stands solidly behind the concept of school-based decision making.

This concept of site-based management is not a new one. While, perhaps, new to education, it has been successfully implemented in business for some time. Site-based management, as a way of doing business, is appealing because it reflects the ideals of democratic self-governance cherished by our country. It is a workable tool for making sure that all stakeholders (staff, parents, community members and when appropriate students) are involved in ensuring that quality education is available to the students of the community. Site-based management is a collaborative, cooperative, trust building, open method of communication that leads to positive thinking about how to improve education. Committees who have visited districts involved with site-based management report that those participating showed no desire to return to the traditional ways of doing things.

It must be remembered, however, that no matter how enthusiastic the stakeholders in the district are about the concept of site-based management, care must be taken in its implementation. It takes time to make any worthwhile change. All participants must be dedicated to the change and districts must move slowly. Pilot programs offer one way to initiate a system of site-based management.

All functions of a school system cannot be carried out within the school setting. Some operations such as maintenance and food service are best left under central control. Expectations should be held to a reasonable level. Change does not happen quickly, and at this time, there is little substantial proof that site-based management really works. Those districts interested in its implementation can only depend upon the enthusiasm of those already participating in the program.

A common criticism of education is that educators have been beleaguered with trendy ideas about improving education. Most educators have experienced the rush to implement a new concept only to have the idea lose momentum, support, and interest before it has been fully integrated and evaluated. Part of this problem has been one of organization. In the past, change has been initiated from the top down. To be significant, change should come from grass roots sources and introduced at grass roots levels. Sometimes ideas are forced upon professional educators without proper evaluation, follow-up, or support from the people who initiated the idea in the first place. Such initiatives rarely become a long-term reality.

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Educators need to be more assertive about what happens in their professional lives and take charge in a way that can benefit both their schools and their students. Site-based man-agement seems to offer an alternative to attempts of a distant district office to control qual-ity in education. It is not intended to solve all the problems. Neither is it just a passing fancy. What it can provide is a workable structure in which professionals can apply their craft with experienced peers as guides. The community can then evaluate the ultimate results of their efforts. Quality programs with designed diversity can grow from decentral-ized policies. While there appears to be a growing interest in site-based management, it cannot be imposed on schools. The support of the entire school community and board of education are essential before it can be fully implemented.

In order for site-based management to succeed, it is important to clearly state the division of responsibility between site councils, principals, central office and the school board. One method would be for each committee member and any other persons involved with the program to fill out a check-list to determine which decision should be school-based, central office-based, or decided collaboratively. The development of a site-based plan should delineate lines of responsibility for specific types of decisions. A sample checklist is provided for this purpose.

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CHECKLIST FOR DELEGATING DECISION-MAKING AUTHORITY UNDER SITE-BASED MANAGEMENT:

INSTRUCTIONS: Read each decision/issue and determine whether the particular decision or issue should be made by the school, the central office or as a collaborative decision between the school and central office.

DECISION/ISSUE School Collaborative Central

I. INSTRUCTION (Curriculum and Student Learning)A. Annual priorities for student learning needs for school

B. Annual school objectives for student learning

C. Overall strategies for achieving school objectives

D. Purchase materials for classroom instruction

E. Changes in curriculum content, scope, or sequence

F. Changes in time allocation for subjects and courses

G. Textbook needs

H. Instructional material needs

I. Purchase supplementary instructional materials

J. Student field trips

K. Changes to the daily or weekly instructional schedule

L. Time and format for “field days”

M. Date, time, content and presenters at student assemblies

N. Teaching methodology and techniques

O. Staff attending meetings and staff development away from the district or school

P. High school graduation requirements

Q. Starting and ending time of the school day

R. Early release of students for teacher staff development

S. Waivers concerning number of days for student attendance

II. PERSONNEL (STAFFING)

A. Annual Staffing Needs

B. Recruiting staff members

C. Applicant screening for positions

D. Selecting staff members

E. Assigning staff to specific jobs (Teachers, Counselors, Librarians, Special Ed., etc.)

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F. Performance evaluation of school staff

G. Promotion, discipline, and dismissal of employees

H. Rate of pay and incentive pay

I. Negotiate consultation agreement between school and staff

J. Conduct grievance hearings

K. Identify specific staff development for faculty and staff

L. Determine “overtime” pay for staff

III. GENERAL MANAGEMENT & PLANNING

A. School mission statement

B. Annual goals and objectives for student learning

C. School priorities

D. Define accountability measures for school improvement

E. Changes in job duties for school staff

F. Monitor compliance with court orders, civil rights, equity rights, equity requirements

G. Additional days to staff contract for special duties

H. Content of school staff meetings

I. Student enrollment projections for school attendance area

J. Date, time, and methods for school fund raisers

K. Reallocation of funds within the school budget allotment

L. Use of general school funds for school-designated projects

IV. BUILDING & FACILITIES

A. Capital equipment needs

B. Inventory control and records maintenance

C. Building maintenance and repairs

D. Purchase of cleaning and maintenance supplies

V. STUDENT MANAGEMENT

A. Starting and ending time of the school day

B. Early release of students for teacher staff development

C. Waivers concerning number of days for student

D. attendance

E. School attendance area boundaries

F. School assignment for individual students


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G. Time allotment for classroom seasonal parties and celebration

H. Release of students from class for extracurricular activities

I. Changes in the student discipline program or procedures

J. Credit for transfer students

K. Grade placement of transfer students


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REFERENCES

Bailey, William J., School-Site Management Applied, Technomic Publishing Company, Inc., 1991.

Cardilli, Sally Ann; Serling, Renee Levy; and Graczyk, Dr. Sandra L., Teachers Tackle Budgeting-Site-Based Budgeting at Work, School Business Affairs, December 1992.

Conrad, Mark, One Step at a Time—SBM as an Incremental Process, School Business Affairs, May 1995.

DiBella, Cecilia M. and Krysiak, Barbara H., The Art and Science of Letting Go, School Business Affairs, November 1997.

Drury, Dr. Darrel W., Reinventing School-Based Management: A School Board Guide to School-Based Improvement, National School Boards Association (NSBA), 1999.

Dunklee, Dr. Dennis R., Site-Based Management—Implications for Risk Management, School Business Affairs, June 1990.

Earthman, Dr. Glen I., Who Will Fix the Roof? Site-Based Management Program, School Business Affairs, December 1992.

English, Fenwick W., School-Site Management, The Practitioner, Vol.XVI, No. 2, December 1989.

Frohreich, Dr. Lloyd, What Have We Learned? A Look at the SBM Literature, School Business Affairs, May 1995.

Griffin, Dr. Richard A. and Griffin, Ann D., The Legacy of Apollo: Assessed and Appreciated, School Business Affairs, November 1997.

Griffin, Dr. Richard A. and Phipps, Bill, RSBA, From Power to Persuasion- The Business Official’s Role in Site-Based Decision-Making, School Business Affairs, December 1992.

Herman, Dr. Jerry J., School-Based Management: Staffing and Budget Expenditures, School Business Affairs, December 1992.

Herman, Dr. Jerry J. and Herman, Dr. Janice L., Business Officials and School-Based Management—Roles, Opportunities and Challenges, School Business Affairs, November 1991.

Hess, G. Alfred, Reallocating Resources for SBM—Creating an Engine for School Reform, School Business Affairs, May 1995.

Honeyman, Dr. David S., Learning from Mistakes—Successfully Implementing SBM, School-Business Affairs, May 1995.

Honeyman, Dr. David S. and Jensen, Rich, School-Site Budgeting, School-Business Affairs, February 1988.

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Lausberg, Dr. Clement A., Site-Based Management—Crisis or Opportunity? School Business Affairs, April 1990.

Lawton, Stephen B., Restructuring Education: An International Perspective, a paper presented at ASBO Convention, Toronto, Ontario, Canada, October 1990.

Neal, Richard G., School-Based Management: An Advanced Model, paper presented at Annual Meeting of the Association of Negotiations and Contract Administrators, San Francisco, California, November 1988.

Neal, Richard G., School-Based Management Lets Principals Slice the Budget Pie, a paper presented at ASBO Convention, Toronto, Ontario, Canada, October 1990.

Odden, Dr. Allen, Wohlstetter, Priscilla, and Odden, Eleanor, Key Issues in Effective Site-Based Management, School Business Affairs, May 1995.

Peters, Dr. Frank, School-Based Decision-Making: The Canadian Perspective, School Business Affairs, November 1997.

Picus, Dr. Lawrence O., Assigning Responsibilities: Where Do the Dollars Go? School Business Affairs, November 1997.

Polansky, Dr. Harvey B., Requiem of a Theory: The Fallacy of SBM, School Business Affairs, November 1997.

Russo, Charles J., A State Mandate—Kentucky’s Ongoing Implementation, School Business Affairs, November 1997.

School-Based Management - A Strategy for Better Learning, AASA, NEASP, NASSP, 1988.

School-Centered Decision Making, a report from the SCDM Steering Committee to the Elmbrook Board of Education, August 24, 1993.

Site-Based Management, Educational Research Service, 1990. Site-Based Management and Decision-Making, Video, AASA, 1992. Site-Based Management and the School Business Administrator - #26, ASBO, 1993.

Wagoner, Robert V., Site-Based Budgeting—A Critical Factor in the Success of Decentralized School Management, School Business Affairs, May 1995.

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CHAPTER 24

BOARD OF EDUCATION & BUSINESS OFFICEPOLICIES AND PROCEDURES

INTRODUCTION

By definition, a policy shall be a statement of principle or an operational guideline established and approved by the Board of Education to guide the decisions of the School Board and the School Administration in order that continuous educational and administrative leadership may be exercised.

In keeping with the primary responsibility of the Board of Education as the elected representatives of the citizens of the school district, a complete document should be developed in policy form regarding decisions necessary for the general operation of the School District to ensure the effec-tive and efficient operation of the public schools. Policies adopted by the Board shall reflect its direct relationship with and responsibility to state government and its delegation of specific authority to the Superintendent of Schools. When necessary, policies should be adopted to ensure compliance with the School Laws of Wisconsin and the United States.

The subjects addressed here will serve as a checklist for some of the more common areas for which policies should be written as a means of communicating the goals and objectives of the Board of Education to the management team.

This chapter is being written for school board/administrative and business office purposes only. Some districts will want to have additional policies written for other areas, such as Personnel, Students and Instruction; however, checklists for those areas will not be included here.

Although it is not possible to cover every contingency in any one document, when a policies and procedures manual is developed, an attempt should be made to list most of the situations that need interpretation and to insure that such interpretations are consistent.

Policy development is an ongoing function because there is no end to the issues that require a pol-icy solution. Policies can help define the proper role for the Board of Education and administra-tion by identifying their respective lines of authority.

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I. DISTRICT ORGANIZATION AND INTERNAL POLICIES

A. The first step in organizing a school district is to establish policies and procedures dealing with the laws and rules which govern the organization and operation of a school district in the State of Wisconsin.


DISTRICT ORGANIZATION AND INTERNAL POLICIES CHECKLISTComplete In Progress N/A

A. Organization

1. The official description of the district as created in accordance with Chapter 117 of the Wisconsin State Statutes, including the date, method of approval, and type of district.

2. The official name of the district as outlined in Wisconsin Statutes 115.01(5) is determined.t

3. The make-up of the Board in accordance with guidelines set forth in Wisconsin Statutes 120.01, 120.02(3), 120.06(3), and 120.06(4) relative to the number of members on the board, the terms of office, and methods of electing members is included.

4. A description of the qualifications necessary for eligibility as a Board Candidate per Wisconsin Statute 8.21 is included.

5. The apportionment by area of the members of the Board will be determined by using a map of the district.

6. The procedure to follow in filling Board of Education vacancies has been established based on guidelines set forth in Wisconsin Statutes 17.03, 17.26, 17.26(1), and 19.88.

7. The Board shall delegate to the Superintendent of Schools the function of formulating administrative procedures and designing the detailed regulations under which the schools shall be operated, which shall be in conformance with Board of Education policy and applicable statutes.

8. The Board of Education shall be responsible for annually evaluating the job performance of the Superintendent of Schools.

9. The President of the Board shall be responsible for scheduling four evaluations of the Superintendent each year in accordance with Wisconsin Statute 19.85.

10. At the time of contract renewal, the Board shall prepare a written evaluation of the job performance of the Superintendent, one copy of which shall be placed in the permanent file of the Board of Education and one copy shall be given to the Superintendent.

11. The board shall delegate to the Superintendent of Schools the function of formulating administrative procedures and designing the detailed arrangements under which the schools shall be operated.

12. The rules and administrative procedures shall constitute the administrative regulations governing the schools and shall be in conformance with Board of Education policy and applicable statutes.

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13. The Board of Education shall write broad goals and objectives for the operation of the Board and of the District prior to the beginning of each fiscal year.

g) The goals and objectives of the Board of Education shall be evaluated at the middle and end of each fiscal year.

14. District Elections

a) The election of members of the Board of Education in the spring has been determined per Wisconsin Statute 120.06(1).

b) Voter qualifications will be based on guidelines described in Wisconsin Statues 6.02, 6.27, and 120.06(5).

c) Procedures for the proper handling of absentee ballots have been established using Wisconsin Statutes from 6.85 to 6.89.

d) Location of polling places, the dates the various elections will be held, and the hours the polls will be open has been agreed to between the various municipalities and the school district.

e) Methods of selecting inspectors (Board of Canvassers) and tellers have been determined using Wisconsin Statute 120.06(8)(f)(1) as the basis for selection.


II. BOARD OF EDUCATION

A. It is essential to develop a complete document of policies and procedures governing the organization and function of the Board of Education to be used as a checklist for current and incoming Board Members.

B. The role of the Board of Education as a corporate entity empowered by Wisconsin Statutes has been clearly delineated in Chapter 120.

C. Evaluation criteria for this section are contained in the following Checklist.

BOARD OF EDUCATION/BUSINESS OFFICE CHECKLIST


A. Organization of Board

1. The Code of Ethics under which the Board of Education will function is spelled out in Statute 19.41.

2. The method of election of Board Officers has been established per Wisconsin Statutes 19.88(1) and 120.05 as being a secret written ballot.

3. Vacancies which occur in any office shall be filled using the same election process.

4. A definite process for nomination of Board officers has been defined and adopted and shall be explained on a timely basis to all newly elected Board members.

5. Job Descriptions shall be developed for all Board officers.

6. The Board and the administrative staff shall assist each member-elect in understanding the Board’s functions, policies, and procedures before he/she takes office by following a carefully prepared, predetermined list of methods to be employed for this purpose.

7. The philosophy of the Board of Education shall be that each motion be discussed and voted upon by each Board Member, including the President, at a public meeting, except when a closed session is indicated by Wisconsin law.

B. Written Policies

1. The policies of the Board of Education have been adopted and recorded at a regular public meeting of the Board.

2. Policy books are kept in convenient loose-leaf form.

3. Policies of the Board of Education are recorded in one place.

4. The chief school administrator has developed a framework to create, revise, and evaluate approved policy.

5. Staff members are involved in the development of policies.

6. Policies are printed one to a page so updating requires a minimum of typing.

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7. All policies or amendments to policies shall be adopted by a majority vote of the Board after two presentations to the Board of Education with not less than two weeks between presentations.

8. New policies are added to the book immediately after they are approved by the Board and old policies are discarded.

9. Board policies are indexed.

10. Policies are numbered and are arranged in a systematic manner.

11. Policies of the Board are kept up to date with a review at least every three years.

12. A plan is developed to inform the staff of changes in policy which concern them.

13. Policy books are distributed to the Board of Education and appropriate members of the management team.

14. The policy manual is available at pre-designated locations within the school district.

15. A record is maintained of the location of policy manuals in order to facilitate the distribution of updates.

C. Meetings

1. Robert’s Rules of Order, Newly Revised, 1970, or later, shall govern the Board of Education deliberations, except as noted elsewhere in the Board Policy.

2. An Order of Business for regular monthly Board meetings shall be agreed upon and included in the Board policies.

3. A quorum of a majority of the Board members has been established for transacting official business of the District as stated in Wisconsin Statute 120.11(1).

4. A packet containing information relative to the next regular Board meeting will be distributed to each Board Member at least three working days prior to the meeting.

D. Board of Education Open Meetings

1. The date and the time of the Annual Meeting have been determined based on Wisconsin Statute 120.08(1).

2. The location of the Annual Meeting and Annual Budget Hearing will be specified and publicized annually by the Board of Education.

3. The powers of the Annual Meeting have been delineated in Wisconsin Statute 120.10.

4. As per Wisconsin Statute 120.08(2), Special Meetings of the electorate may be called to transact District business.

5. A policy is in effect for the time and location of regular meetings of the Board of Education as specified in Wisconsin Statute 120.11(1).

6. A policy has been established for holding additional meetings at such other times as deemed appropriate.


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7. Special Board Meetings

A Special Board Meeting can be held if the following criteria are met in accordance with Wisconsin Statute 120.11(2):

a) A Special Meeting can be called upon the written request of any Board member.

b) The request must be filed with the School District Clerk, or in the Clerk’s absence, the School Board President.

c) Each School Board Member must be notified in writing at least 24 hours in advance of a Special Meeting.

d) There are clearly defined methods of delivering the notification of a Special Meeting to each Board Member to assure the written notice is received.

e) A Special School Board meeting may be held without prior notice if all School Board members are present and consent.

f) A Special Meeting may be held if every School Board member consents in writing, even though he or she does not attend.

8. School District Board meetings shall be open to the public unless exempted by Wisconsin Statute 19.85.

E. Board of Education Closed Meetings

1. Closed sessions of the Board of Education may be held in accordance with Wisconsin Statute 19.85, provided the motion to hold such a meeting is carried by a majority vote in such manner that the vote of each member is ascertained and recorded in the minutes.

2. The Board of Education has agreed to include in the board policies a list of reasons under which a closed session can legally be held.

3. A closed meeting can only be held if the chief presiding officer announces to those present at the open meeting at which such motion to hold a closed session is made, the nature of the business, and the specific legal reason(s) by which such closed session is claimed to be authorized.

4. Announcement of such a meeting shall become part of the record of the meeting.

5. No business may be taken up at any closed session except that which relates to matters contained in the chief presiding officer’s announcement of the closed session.

6. All motions made and votes cast in a closed session of the Board of Education shall be made available to the public as required by Wisconsin Statute 19.88.


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7. Minutes of the closed sessions of the Board of Education shall be available for public inspection within 24 hours after the meeting has adjourned or as soon thereafter as the minutes can reasonably be prepared as per Wisconsin Statute 19.35(4).

8. A disclaimer stating “Rough Draft Not Approved by the Board of Education” shall be in the minutes until formally approved.

9. If the reason for convening the closed session continues, the custodian of records may withhold the closed session minutes.

10. If an oral request for the minutes of a closed session is made, the custodian of records may deny the request orally.

11. If a written request for the minutes is made, the custodian of records shall provide the requester with a written statement of the reasons for denial, also informing the requester that the denial is subject to review by mandamus under Section 19.37(1), Wisconsin Statutes, or upon application to the Attorney General or District Attorney.

12. The results of the closed session may be released verbally by the President, Clerk, Committee Chairperson or Superintendent/designee prior to the preparation of minutes if the reason for convening the closed session no longer continues.

13. The public shall be allowed access to a designated waiting area or they must leave the building during a closed session meeting if there is no other business or activity in which the public may attend or take part.

14. In the event any member(s) of the public does not remain in the designated waiting area or leave the building, the School Board President, Committee Chairperson, or designee may request such person(s) to vacate the building immediately or district personnel may contact the local police department and request assistance.

F. Board Committees and Appointments

1. The Board of Education shall maintain standing and special committees whenever it is deemed to be in the best interests of the Board and the District to do so.

a) Each standing and special committee will have a specific job description detailing the duties of the committee.

b) The first person named by the President to serve on the committee shall serve as committee chairperson - the second named shall assume the responsibilities of the chairperson in the absence of the chairperson.

c) Committee appointments shall be made no later than the first regular meeting after the election of Board officers.


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d) The standing and special committee functions should be clearly understood as fact-finding, deliberative and advisory and are never legislative or administrative.

e) A committee derives its authority from the full Board and from Board policy and has no decision-making authority onto itself.

f) The President of the Board and Superintendent of Schools shall serve as ex officio members of each Board committee.

g) The Superintendent of Schools and all board members shall be notified of all committee meetings and receive a copy of the minutes of each meeting.

h) All reports and recommendations of Board committees which are to be brought to the Board of Education for action (vote) shall be in writing and shall be included in the Board packet or previously distributed committee minutes if a vote is to be taken at the Board meeting.

i) Any reports or recommendations not distributed to Board members prior to the meeting shall need a two-thirds vote of the Board to be brought to the floor for action at that meeting.

2. A standing Board committee shall be appointed for one year for the performance of duties as outlined in the job description of that committee.

a) Each standing Board committee shall include three Board members.

b) Each Board member shall be asked to indicate preferred committee assignments, but the final committee appointments shall be determined by the Board President and approved by the Board.

3. A special Board committee shall be appointed by the Board President for a specific period of time to accomplish a single task as outlined in the charge to the committee which shall be developed by the President of the Board and approved by the complete Board.

G. Legal Counsel

1. The Board of Education shall annually appoint an attorney to represent the School District and advise the Board of Education.

2. The attorney shall attend regular and Special meetings of the Board when requested and shall be available for consultation as needed.

3. A specific policy has been written designating the line of authorization for the various services requested of the attorney.

4. Distribution of copies of all opinions has been clearly set forth as to who shall be given copies, both for confidential opinions and opinions of a more general nature.


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H. Board Membership in Organizations

1. The School District shall pay for membership in both state and national school board organizations and approved expenses incurred in attending meetings of such organizations upon approval of the Board of Education.

2. An annual budget must be developed to cover the costs of membership and expenses for attendance at meetings of such organizations.

3. The types of approved expenses and proper procedure to follow filing for reimbursement is clearly spelled out.

4. Honorariums for Board member participation in programs may be accepted in the name of the school district.

I. Official Depositories

The Board of Education shall designate annually one or more depositories in which money belonging to the School District shall be deposited in accordance with Wisconsin Statute 120.12(7).

J. Student Representatives

1. The position of Student Representative to the Board of Education shall be established in an effort to encourage participation in the democratic process and to encourage open communication with the student body.

2. Student Representatives will be elected by the student body of their school.

3. Student Representatives shall act as a liaison between the student body and the Board of Education.

4. Student Representatives will be allowed to attend all non-closed sessions, sit with the Board in its deliberations, receive all non-confidential materials sent to Board members, and speak at meetings when recognized.

5. Student Representatives will not be able to vote or make motions.

6. Each new Student Representative will meet with the outgoing student representative and the Superintendent of Schools for a complete orientation.

K. Board Member Request for Information that Requires Administrative Research

1. Requests for information must be made only through certain specified administrators.

2. If, in the determination of the Superintendent, the request involves an inordinate burden or length of time to complete, the request may be denied, but the Board member making the request shall be advised of the reason for denial.


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3. A procedure to follow has been established in the event the Board member wishes to appeal the denial of the request for information.

4. The policy for denying information does not authorize the withholding of information available under the Open Meetings or Open Records Law.


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III. COMMUNITY RELATIONS

A. Public schools are the people’s schools. They belong to the people, and they are the people’s responsibility. The people have a right to know the educational objectives, financial status, and facility requirements of the school district.

B. Communication should be a continuing effort of the Board and district employees to insure the maximum understanding by the community of the objectives, activities and needs of the school district. Therefore, policies and procedures should be established dealing with mass media of communications, parent-teacher organizations, citizens’ committees, complaints concerning school personnel, community use of school buildings, other governmental and private groups concerned with education and the like to assure guidelines are established for maintaining good community relations.


COMMUNITY RELATIONS CHECKLISTComplete In Progress N/A

A. Communication with the Public

1. All publications shall be factual in nature and shall be guided by a code of truth, accuracy, fairness, objectivity and good taste.

2. The school district shall sponsor both district and individual school-sponsored publications, newsletters and other communications to disseminate information pertinent to the school district.

3. All new district or individual school-sponsored newsletters shall be approved by the Superintendent and shall carry a statement as to their purpose, scope, frequency of publication, and identity of the editor.

4. The district shall sponsor publications which shall be designated as Forums for Student expression in which content is determined by student journalists who can therefore exercise their right to freedom of expression and exchange of ideas.

5. District-sponsored advertising requiring expenditure, other than that relating to hiring personnel and other regular business functions, shall have the prior approval of the Board and Superintendent of Schools.

6. School-sponsored advertising shall have the approval of the Building Principal.

7. Suitable working accommodations shall be furnished to representatives of the press at all meetings of the Board.

8. All meetings of the Board shall be public meetings and open to press coverage, except as exempted by Wisconsin Statute 19.85.

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9. To assure adequate consideration of a matter, persons wishing to place any matter of district concern on the agenda shall make a written request listing the nature of their business to the Superintendent at least five working days prior to the meeting so the matter can be scheduled as an agenda item.

10. Persons making requests to be added to the agenda shall identify themselves by name and address indicating whether they represent themselves or a group.

11. In case of emergency prior to or during the meeting, Board members present may unanimously consent to add unwritten requests by persons to the agenda.

12. Such matters shall be designated by the Board president as to where they will be placed on the agenda and a time limit for discussion.

13. Persons wishing to speak in regard to agenda items shall make their desire to speak known prior to the President’s closing of public participation, and such requests will be honored with a possible time limit.

14. District employees shall give maximum cooperation to other governing bodies, including attendance at governmental meetings or discussions of mutual concern whenever such attendance or discussion would affect any facet of the district’s programs.

15. The Superintendent’s office shall supply any information being requested by a governing body pertaining to district programs.

16. The Board shall maintain contact with district parent-teacher organizations, private or parochial schools, and other community, civic, and service organizations.

B. Participation by the Public

1. Parent organizations should be encouraged as a means of strengthening the home-school relationship, identifying the needs and values of students, and attaining community and parent input regarding district concerns.

2. Content of school parent organizations’ publications shall be considered the responsibility of the parent group.

3. Distribution of school parent organizations’ publications shall be determined by the building principal.

4. Study Committees may be appointed by the Board to accomplish specific tasks, to keep posted on public opinion, or to inform the public of district needs.

5. Visits to the schools by members of the community are encouraged through open houses, parent-teacher meetings, and other formally organized programs to acquaint the public with the school programs.


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6. Individuals visiting schools should first report to the Principal’s office, and prior arrangements with the office are encouraged.

C. Public Activities Involving Staff or Students

1. Constructive comments regarding the district are welcomed when motivated by a desire to improve the quality of the educational program or to equip the schools to more effectively perform a task in order to make district personnel aware of potential problems and issues affecting the district.

2. Complaints of citizens against district personnel must be filed on a complaint form in writing and signed.

3. District administrative personnel shall investigate written and signed complaints and prepare a written report within thirty days and inform the Board of such complaints.

4. If the complaint is not resolved and the complaint involves a substantial question of policy or importance to the district, or if the citizen establishes the administration’s investigation was deficient, the citizen may request, in writing, that the Board grant a de novo (from the beginning) hearing.

5. All persons involved with the complaint must be notified of the date and time established for the hearing.

6. The hearing shall be conducted in a manner which provides due process to all involved.

7. Board members and district staff may refuse to take anonymous telephone calls or complaints and are under no obligation to issue public statements on reports or charges based on hearsay or rumors.

8. People wishing to express appreciation to district personnel are encouraged to send a letter of appreciation in lieu of gifts, except in such cases as the employee is leaving the district or retiring.

9. During the calendar school year, organized school groups may participate in community functions which require no cost to the district with the approval of the Principal.

10. Activities which would incur a cost to the district require Board/designee approval.

11. Outside the calendar school year, organized school groups may participate in outside functions with Board/designee approval.

12. Student participation outside the calendar school year is strictly voluntary.

13. Contests sponsored by groups outside the school in which students representing the school participate must have prior approval of the Superintendent/designee.


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14. Literature advertising or promoting contests, trips, or any other activity or commodity shall not be distributed to district students without prior approval of the Superintendent/designee.

D. Activities Involving School Facilities

1. It is the policy of the Board to cooperate with community agencies and organizations to the fullest extent, consistent with appropriate use of facilities, in making school facilities available for community needs provided such usage does not interfere with the regular academic pursuits, extra-curricular activities or school maintenance functions.

2. Applicants shall assume responsibility for, and compensate for, any damage done to buildings, sites or equipment during the period of usage; to indemnify and to forever hold harmless the Board and its officers, agents and employees from any and all claims of whatsoever kind, nature or description arising out of use of any school facilities controlled by the Board, pursuant to an application which shall be signed prior to proposed usage date.

3. The administration may grant responsible organizations use of school facilities in accordance with the usage policy

4. Failure to follow district requirements may preclude a group’s future use of facilities.

5. When any organization is granted use of a school facility and when publicity of the meeting is disseminated by the news media or other means, the organization must agree to fully identify itself and the name of the official representative of that group.

6. An application form has been developed which all organizations must complete upon requesting building usage privileges including type of meeting and purpose of the organization.

7. Any special equipment necessary must be requested and approved in advance.

8. Any usage billing must be completed and sent by the individual school to the person whose signature appears on the application.

9. Any non-school organization must file a group certificate of insurance with the office of the school being rented when the application form is submitted.

10. Any non-school organization using pool facilities must provide proof of insurance which includes comprehensive, general liability policy limits of not less than $1,000,000 combined single limit per occurrence for bodily injury and property damage and naming the district as an additional-named insured.


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11. The applicant shall be liable for any damage to property or for any expenses incurred as a consequence of any such use of school building, or any part thereof, and shall hold Board members, the school district and its staff free and harmless of any liability.

12. No meeting fostered by a political group, nor any religious meeting designed for persons of a specific religious affiliation or to encourage such religious affiliation, shall be permitted to use any school building without prior approval of the Board of Education.

13. No group shall be denied use of school facilities because of sex, race or religious affiliation.

14. Buildings and facilities are to be used only for the purpose noted on the application.

15. A group must be supervised by a responsible adult designated by the organization renting the facilities as the person in charge.

16. The designated adult, of 21 years of age or older, must be present prior to the activity, during the activity and must remain until all members of the group have left the building at the activity's conclusion.

17. A regular member of the district’s custodial staff, or a designated school employee, shall be on duty during all functions where permission has been granted for use of any building or portion thereof.

18. If a group requests use of a kitchen, a pre-determined fee will be levied for a district employed cook to be present to supervise, coordinate, direct, and/or be of service.

19. Users shall adhere to other expectations, rules, regulations or policies unique to an individual building.

20. Use of sites, facilities and equipment can be denied due to security, building maintenance, operation, or lack of staff availability.

21. Some facilities are not available for use by non-district school organizations, such as football or soccer stadiums, computer rooms, specialized classrooms and libraries unless granted an exemption by the Superintendent/designee on an individual basis.

22. The organization renting facilities shall provide adequate supervision to ensure control of all attendees.

23. All rooms must be left orderly; furniture must be placed in its original arrangement.

24. Smoking permitted only in designated areas.

25. In the event of emergency situations such as fire or civil defense, the adult in charge shall be responsible for the welfare of all attendees and shall direct them per the posted emergency procedures.


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26. An area has been designated on the application where food and beverages are permitted.

27. Group rates have been established for school-related, community or outside groups.

28. A schedule of usage rates has been developed for various facilities and equipment.

29. An area has been designated as a smoking area and signs have been posted identifying those areas pursuant to Wisconsin Statute 101.123.

30. If smoking areas are adjacent to non-smoking areas, seating shall be arranged to accommodate nonsmokers.

E. Access to School Records, Procedures and Materials

1. The Board has appointed the Superintendent/designee as its legal custodian for the keeping and providing of its records.

2. The Superintendent/designee may designate other district employees to maintain this public accommodation for the district at those locations and for those services over which the employee has direct control and/or responsibility.

3. The Board has vested the legal custodian with full legal power to render decisions and carry out the duties of the Board to keep and provide records.

4. The legal custodian may keep and preserve public records in his or her possession by means of microfilm or other photographic reproduction method as set forth in Statute 16.61(7), which shall be considered original records for all purposes.

5. The Superintendent/designee shall be responsible to direct those designated employees maintaining and providing public records to maintain a prominent notice of a description of its organization as well as the times, places, persons, and methods for obtaining access to the district's records.

6. Records shall be made available for access at all times during office hours as specified in Wisconsin Statutes Chapter 19, Subchapter II.

7. The Board will provide for the keeping and preservation of public records according to the following categories:

a) All district records shall be kept for a period of not less than seven years unless a shorter period is fixed by the public records and forms board under s.16.61(3)(e) of the Statutes and except as provided in (b).


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b) Any taped recording of a meeting by a governmental body must be kept for 90 days after the minutes have been approved and published if the purpose of the recording was to make minutes of the meeting per Statute 19.82(1) and (2).

c) Prior to destruction of any records, the Historical Society shall be notified at least sixty days in advance to determine if historical interest justifies preservation of such records.

8. Whenever a designated custodian is unsure if a particular item should be subject to public inspection, the Superintendent should be contacted for guidance in determining whether it should be made available or withheld from the public.

9. When further guidance is necessary, the Legal Custodian may contact the district’s legal counsel or the State Attorney General’s office for further direction.

10. Fees have been established in the event that a copy of the public record is requested based either on a flat fee or on the actual cost to the district of providing the copy.


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IV. BUSINESS AND NON-INSTRUCTIONAL OPERATIONS

A. Because of the accountability necessary for the financial and non-instructional opera-tions of the school district, it is imperative that policies and procedures be established to insure compliance with the laws of Wisconsin and the United States, as well as insuring a consistent method of business procedures.

B. Subjects for which policies should be written include budgeting, proper procedures relating to revenues and expenditures, purchasing guidelines, accounting procedures, operations and maintenance, transportation, food services, long and short-term loans, and capital outlay procedures.


BUSINESS AND NON-INSTRUCTIONAL OPERATIONS CHECKLISTComplete In Progress N/A

A. Budget

1. The Superintendent, with the assistance of the Business Administrator, shall formulate a budget review timetable for the following fiscal year, including possible revisions.

2. The official adopted budget and tax levy shall be approved by the Board prior to November 1 per Wisconsin Statute 120.12(3).

3. A summary of the recommended budget containing at a minimum the information required by Wisconsin Statue 65.90(2)(3)(c) shall be published in the designated newspapers of the district as a Class I Notice no less than 10 days prior to the Budget Hearing and Annual Meeting.

4. Along with the budget summary, a detailed copy of the proposed budget shall be made available for public inspection at a central place not less than 10 days prior to the Annual Meeting.

5. Summaries of the budget will be mailed to all residences within the district at least one week prior to the Annual Meeting.

6. Public budget review meetings for the purpose of acquainting the resident taxpayers with the progress of the proposed budget can be held at the discretion of the Board prior to the Annual Meeting date.

7. A public hearing on the proposed budget will be held at the time and place of the Annual Meeting at which time any resident of the district shall have an opportunity to be heard on the proposed budget.

8. Summaries of the major account number classifications shall be prepared for distribution to those attending the Budget Hearing and Annual Meeting showing the proposed budget amounts for the next fiscal year, budget and projected actuals for the current year, and actual totals from the previous year.

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9. Appropriate amounts may be transferred from those areas of appropriations in which a surplus is anticipated into those areas in which a deficit is anticipated upon authorization by a two-thirds vote of the entire membership of the Board, and shall be duly noted by publication of a Class I Legal Notice per State Statute 65.90(5)(a).

10. The Superintendent/designee is authorized to make expenditures and commitments in accordance and in harmony with the administrative plans and budget approved by the Board.

11. Budgets shall be formulated each year for each fund which will experience any activity during the school year.

12. Those areas of the budget which are more of a district-wide nature shall be formulated by the district administration.

13. Each district location will be given a total allocation for which that building’s administrator shall be responsible to distribute according to the specific requirements of that building.

14. If any administrator wishes to exceed the budget

15. allocation by an amount less than $1,000, a written request must be submitted to the Superintendent/designee for approval.

16. The Board shall be informed of any approved requests to overextend the budget by less than $1,000.

17. If any administrator wishes to exceed the budget allocation by $1,000 or more, a written request must be submitted to the Superintendent/designee and referred to the Board for approval.

B. Income

1. The Board shall recommend the local tax levy for school district purposes for approval by the electorate at the Annual Meeting per Statute 120.08(2)(c).

2. The tax levy is subject to amendment and final approval by the Board on or before November 1 if the Annual Meeting has voted a tax greater than or less than that which is sufficient to operate and maintain the school district for the ensuing school year per Statute 120.12(3).

3. The approved tax levy shall published with a Class I Notice.

4. Certification of the tax levy shall be made to the municipal clerks on or before the last working day in October.

5. The Superintendent/designee shall submit to the State required reports necessary to qualify for General and categorical State aids.


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6. The Superintendent/designee will monitor Federal programs and recommend those programs in which it would be feasible for the district to apply for Federal Funds with each new or renewal application being subject to approval by the Board of Education.

7. A student whose parent/legal guardian is a resident of the state but not a resident of the school district may attend a district school for up to nine weeks without paying tuition if s/he is in the process of establishing a permanent residence in the district per Statute 121.81(2)(c).

8. Prior to that student’s attending classes, the parent/legal guardian must file a written application with the district stating their intent to establish residency in the district.

9. If residency is not established within nine weeks, another application for the next nine weeks must be filed along with a check as advance payment of the estimated nine-week per pupil costs of tuition which shall be retained if residency is not established during that second nine-week period.

10. If residency is not established during the second nine-week period and the student wishes to continue attending school in the district, a new application accompanied by another tuition check must be filed prior to the third nine-week period which check can also be retained if residency is not established within the third nine-week period.

11. Estimated amounts are used for the initial tuition billings, with the final billing forthcoming after actual costs are known, following completion of the school year.

12. A student whose residence changes to an area outside the district during the last nine weeks of the school year shall be permitted to finish that school year in the district tuition free.

13. Residents of the district at the time of gaining senior status shall be allowed to complete their senior year at the district high school if their parents/guardians move and reside outside the district.

14. Any non-resident special education students, whose district of residence does not offer satisfactory classes for children with the special needs of that student, may enroll in this district’s special program under a tuition contract agreement if accepted on an individual basis.

15. The parent/guardian of a non-resident student shall be responsible for the transportation of such pupil to the school of enrollment.

16. A fee will be charged for the rental of books and the use of workbooks, current events magazines, and other consumable materials using a schedule developed by the Superintendent and approved by the Board.

17. Registration fees shall be determined by the Board each year prior to May 31.


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18. Schedules have been worked out for payment of registration fees in the event the student does not attend a full school year.

19. Textbooks, library books, and other materials and equipment no longer needed by the district are to be disposed of by sale, scrapping, recycling or incinerating.

20. Requests from non-profit organizations for any of this material will be considered.

21. Non-usable items will be salvaged/destroyed.

22. All monies received from the sale of such items or salvage materials shall be deposited in the General Fund.

23. After obtaining electorate approval for the leasing of school property, the Superintendent/designee shall negotiate with interested parties for rental of district owned real estate not presently used for school purposes.

24. All long-term real estate rental agreements are subject to approval by the Board.

25. The Superintendent/designee shall make periodic reports of the rental arrangements to the Board.

26. Rental rates for the ensuing school year shall be determined by May 31 each year for students using school-owned musical instruments in order to defray costs involving their maintenance and replacement.

27. Gifts, grants and bequests may be presented to the district by individuals, organizations and student body groups and shall become the property of the district.

28. Gifts requiring continued maintenance by the district in future years should be carefully considered before acceptance.

29. Only those gifts and grants specifically permitted by law will be accepted and, in those cases, prior approval of the Superintendent/designee shall be required before such items can be accepted per Statute 118.27.

C. Expenditures

1. All purchases shall be made from the companies offering the most reasonable prices consistent with quality and service.

2. All purchase requests shall be made on an approved purchase order, unless the purchase is of an emergency nature.

3. When an emergency purchase is necessary, a confirming purchase order will be issued immediately thereafter.

4. On purchases which exceed $2,000 for equipment items and $5,000 for construction and repair projects and for which specifications can be reliably written, the quality measured or gauged, and the quantify measured or counted, competitive bids shall be requested.


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5. Specifications on bids shall be as open as possible but shall be clearly drawn so that each concern quoting shall understand the type of materials or service desired.

6. Competitive quotations shall be sought for items of a lesser value when appropriate.

7. Bidding for school-building programs shall conform to Wisconsin Statute 66.29 and shall be preceded by the architect’s pre-qualification procedure as approved by the Board.

8. The district reserves the right to reject any or all bids and to accept that bid which appears to be in the best interest of the District.

9. No prior indication of any vendor's bids or quotations will be divulged in order to permit another possible vendor to lower his/her price.

10. After all bids or quotations have been received, information as to given prices on a bid or quotation will be made available upon request at the Business Office.

11. When the bidding process is used, price shall be only one criterion, with other factors being considered in selection such as quality, service provided for maintenance, repair and guarantee of product, payment terms, promptness of delivery and dependability of supplier.

12. Standard bid lists shall be prepared whenever possible so that the District can benefit from volume buying, a more uniform selection of quality products, and the most reasonable prices.

13. The District shall endeavor to take advantage of State Contract Purchasing whenever it is feasible and beneficial to do so.

14. The District will work with Cooperative Educational Service Agencies and municipalities in cooperative purchasing whenever feasible.

15. District purchasing personnel shall work in harmony with vendors extending to them the same courteous treatment as they would like to receive from the vendors in order to establish a good working relationship and encourage the dependability of the supplier.

16. The District shall cooperate with local merchants in offering them the opportunity bid.

17. Local firms, businesses or vendors supplying equipment and materials at equal cost and quality and who can provide satisfactory service for maintenance, repair and guarantee of product, payment terms, promptness of delivery and dependability of supplier, will be given preference when purchases are made.

18. The Business Administrator/designee shall be responsible for interviewing vendors.


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19. In cases where it may be necessary for salespersons to confer directly with other school personnel, prior approval of the Building Principal and/or the Business Administrator/designee is necessary.

20. Salespersons shall not be allowed in schools without prior approval of the Building Principal and/or Business Administrator/designee for the purpose of soliciting business.

21. In construction projects of $5,000 and over, bid through an architect, the successful bidder shall submit a performance bond for the amount of the contract.

22. Bid bonds in the amount of at least 5% of the total bid shall be required whenever performance bonds are needed.

23. Both performance bonds and bid bonds may be requested for other purchases as determined by the Board and/or the Administration.

24. All purchases made in the open market shall be consummated after careful pricing and checking for quality.

25. Whenever possible, competitive quotations for materials or services shall be sought when the quantity or cost of materials is great enough to warrant the time and expenditure involved.

26. Some items of equipment and supplies which have been found through experience to be superior or to more fully meet the needs of the schools will be bid with no substitutes accepted.

27. All purchase order issues shall include the authorized signatures of the Building Principal and Business Administrator as an indication of proper authority for the availability of budgetary funds.

28. Purchases not handled in this manner become the personal liability of the purchaser.

29. All schools in the District shall be given a supply of purchase orders for use in preparing requests for purchases during the year.

30. Any requests exceeding the amount provided in the budget shall require approval of the Superintendent and/or Business Administrator.

31. The account distribution on the purchase order shall be checked for accuracy and corrected if an error is noted.

32. If the Business Administrator disapproves a purchase order based upon budget availability, it will be returned to the originator.

33. All purchases of goods, services, and equipment for which the District will be responsible for payment-except purchases made under approved Petty Cash Funds-must be made on official purchase order, properly approved and executed.


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34. Prices may be obtained either from formal bids, quotations, verbal quotations, or standard price lists.

35. If the actual price is not known, an estimate can be used.

36. The Business Administrator reserves their right to order the material from other sources than requested if a better price can be obtained for merchandise of comparable quality.

37. Purchasing for any staff member’s personal use in obtaining lower prices resulting from favorable bidding due to the District’s quantity purchasing shall not be permitted through any of the District’s accounts under the various established funds.

38. Each school shall be the receiving point for materials ordered by the individual school.

39. Certain instructional materials and items used in office operation and in the operation and maintenance of the physical plant are received and stored centrally and delivered to various buildings as later requisitioned.

40. Each receipt of goods is to be inspected for possible damage and counted by the person responsible for the receipt.

41. Goods received through cooperative purchasing at the central warehouse will be checked in and distributed to the appropriate school from the warehouse.

42. Checks for all budget approved items shall be issued and released by the Business Office with the prior approval of the Business Administrator.

43. District purchasing aggregating more than $7,500 in a given year may not be placed with any firm in which a significant interest is held by any Board member, the Superintendent, administrative personnel, or any employee of the District in a position to use, or recommend the use of, the item or service purchased per Statute 946.13(2)(a).

44. A system of accounts shall be maintained which will provide an accurate record of balance sheet accounts, revenues and expenditures, using guidelines recommended by the Wisconsin Department of Public Instruction’s manual, Uniform Financial Accounting Handbook for Wisconsin School Districts.

45. Wisconsin Elementary and Secondary Schools Accounting System (WESSAS) shall be used.

46. Classification of expenditures shall be according to recommendations set forth in the Uniform Financial Accounting Handbook for Wisconsin School Districts, and the breakdown shall be in sufficient detail to provide a complete record of the spending plan.

D. Accounts


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1. A summarized report showing the amounts budgeted, expended or received, and the balance in each account shall be distributed on a monthly basis during the school year.

2. The Board shall receive Capital Projects Fund reports quarterly or as requested.

3. Various other monthly and annual reports of a financial and statistical nature shall be filed with the County, State and Federal agencies as required.

4. Prior to the Annual Meeting, the Clerk’s and Treasurer’s Reports shall be submitted to the Board showing a projected breakdown of receipts and expenditures by account classification per Statute 120.11(3).

5. The Clerk's and Treasurer’s Reports shall be prepared for Annual Meeting distribution.

6. Prior to the Annual Meeting, the Business Administrator shall submit a detailed financial report showing projected cash balances on hand at the end of the fiscal year in each of the District’s funds.

7. The books and accounts of the District shall be audited annually by an independent certified public accountant in conformance with the prescribed standards and legal requirements as per Wisconsin Statute 120.14.

8. The certified public accountant shall be selected by the Board, upon the recommendation of the Administration.

9. A letter of recommendation is to be submitted by the auditors within 60 days after completion of the Annual Audit.

10. The Annual Audit, when completed, shall be presented to the Board for examination, and the Board shall make public the report and the recommendations thereof.

11. Response to the auditor’s recommendations shall be presented to the Board no later than the October regular meeting.

12. The Business Administrator shall annually submit to the Board a projection of income and expenditures through the end of the school year showing a comparison with budgeted allocations.

13. A current inventory shall be kept on all assets of the District to assure proper insurance coverage and to support a claim in the event of a loss per Statute 120.12(8).

14. A uniform system of collecting and depositing money and recording receipts shall be followed by all schools within the District.

15. Money not turned in to the office is the employee’s responsibility.

16. Any amount of cash exceeding $500 or a combination of cash and checks which exceeds $1,000 shall be deposited daily in the bank.


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E. Operation of Plant

The operation of the school plant involves all procedures connected with keeping the physical plant open and ready for use in an effective and efficient manner, in the interest of health, safety and welfare, in accordance with code requirements, District policy, and the Safe Place Law per Wisconsin Statute 101.11.

1. The Buildings and Grounds Official shall be responsible for maintaining buildings, grounds and equipment in a safe condition as the nature of the same will reasonably permit per Wisconsin Statutes 101.01 and 101.11.

2. The Buildings and Grounds Official shall see that the heating, lighting and water and sewerage equipment are kept ready for use and functioning properly in accordance with standard code requirements and safety procedures.

3. Buildings and facilities may be used by pupils only when supervised by a member of the professional staff or other responsible adult subject to the approval of the Building Administrator.

4. The use of school buildings and facilities by community-based organizations shall be subject to approval in writing from the appropriate District administrator.

5. No discrimination because of age, sex, race, nationality or religious or political affiliation shall be practiced regarding who is eligible for participation in building utilization per Federal Law Title 29, Chapter 14.

6. The Head Custodian shall plan extensive cleaning when school is not in session.

7. Each Head Custodian shall be responsible for preparing a budget for the supplies required for each building.

8. The Buildings and Grounds official shall be responsible to furnish a list of items available in the central warehouse.

9. A purchase order for those items not available shall be processed through standard purchase procedures after review by the Buildings and Grounds official.

10. Telephones in schools are for official use in connection with school business and shall not be used for personal purposes by students or staff unless there is an emergency.

11. Pay phones are available in convenient places for personal use by staff and students.

12. Students shall not be called to the telephone during school hours except in cases of emergency.

13. Staff should not be called to the telephone for personal purposes while engaged in official duties, except in cases of emergency.

14. Teachers may be called during preparation periods or during duty-free lunch hour.


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15. Long distance calls may be placed by the administrative staff when necessary to carry out their assigned duties.

16. All other personnel must have approval of the Building Administrator or other supervisory personnel before placing long distance calls.

17. Any long distance calls which are made by staff members for business purposes are to be recorded on standard forms and approved by the Building Administrator.

18. Buildings constitute one of the greatest investments of the District; therefore, every effort should be made to protect the District’s investment adequately.

19. Security of the buildings should be the joint responsibility of the Buildings ad Grounds official and the Building Administrator.

20. Security should not mean to secure the building from a locking standpoint only but also a security from fire hazards and faulty equipment, and safe practice in the use of electrical, plumbing, and heating equipment.

21. Operation and maintenance records shall be kept in a safe place.

22. In the event of major vandalism, burglaries, fire and tornadoes, the Board the Superintendent should be notified.

23. The Police Department and Business Office should be notified of all major losses so that all proper reports can be filed.

F. Maintenance of Plant

1. Inspection of all buildings and grounds shall be done periodically by the Building Administrator, Buildings and Grounds Official and/or Head Custodian, and they shall work together in determining necessary maintenance work.

2. Work which is not emergency in nature and which is not provided for in the current budget shall be included in the following year's budget.

3. Where possible, work shall be scheduled so as not to interfere with the normal educational process (e.g., noxious fumes, excessive noise).

4. Grounds shall be adequately maintained for the educational program of school children and the overall requirements of the educational program shall be continually reviewed.

5. Upkeep of grounds shall include such tasks as the repairing of walks, fences, drains, sewers, and driveways, and the replanting of lawns, flowers, shrubs, and trees.

6. The grounds shall be maintained in a safe and attractive condition year-round.

7. Buildings shall be maintained efficiently through a program of continuos scheduling and completing of necessary repair, reconditioning or remodeling, and long-range planning.


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8. Both the interior and exterior of a vacant building shall be maintained in a safe, sanitary manner consistent with the preservation of occupied buildings in the district.

9. The district shall continue to enter into cooperative agreements with common municipal governments for the regular maintenance of exterior facilities not used in the educational programs of the district.

10. Building maintenance shall include annual, emergency and long-range projects.

11. Schedules for the periodic and regular painting of District property shall be planned by the Buildings and Grounds Official in cooperation with the Building Administrator and/or Head Custodian.

12. Other maintenance work shall include repair to structures and the redecorating of interiors, repairing of roofs or foundations, replacing of doors and windows, upkeep of fire protection equipment and other mechanical equipment, and other such work as deemed necessary for maintenance of the building.

13. Evaluation of the adequacy of the various service systems (heating and ventilating, lighting, plumbing) shall be the joint responsibility of the Building and Grounds Official, Head Custodian and building Administrator.

14. Every effort should be made to meet all the standards developed through an energy program to assure the maximum amount of energy conservation.

15. Mechanical operations and techniques used in meeting energy conservation standards shall be the responsibility of the Buildings and Grounds Official.

16. All instructional or operational apparatus and furniture shall be maintained in serviceable condition by a continuous program of repair or reconditioning.

17. Every effort shall be made to safeguard District equipment against loss, damage, or undue depreciation.

18. Since it is recognized that equipment which is not operating at a high degree of efficiency and plants which are improperly maintained can be potentially hazardous to the people using them, a preventative maintenance program shall be closely followed.

19. Safety of the equipment is a prime concern and budgetary allocations should be made yearly to insure same.

G. Employee Benefits

1. The District shall make provision for inclusion of employees under the federal Social Security Fund per Wisconsin Statute 40.41.


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2. The District shall contribute the appropriate share to the Wisconsin Retirement System as required in the different categories within the System for eligible certificated and classified District personnel.

3. Provision shall be made for participation in tax-sheltered annuity and/or tax deferred compensation programs for staff members only after written notification of an employee’s intent to participate has been filed with the Business Office.

4. The District will not favor participation in any particular company.

5. The District will make every effort to obtain insurance at the most economical cost, consistent with required service and coverage, by obtaining quotations or by negotiation, using whichever method is advantageous to the District.

6. Since insurance is not a commodity but a service, it should not be purchased upon the basis of price alone.

7. The insurance program shall be dealt with as a whole in order to eliminate policy non-currency, inconsistency in rates, overlapping coverage, and gaps in the overall program.

8. The Board shall purchase, upon the recommendation of the Superintendent/designee, the type and amount of Property, Casualty and Worker’s Compensation insurance necessary to protect itself as a corporate body, its individual members, its officers, and its employees from financial loss arising out of any claim, demand, suit or judgment by reason of alleged negligence or other act resulting in accidental injury to any person or in property damage within or without the school buildings while they are acting in the discharge of their duties within the scope of their employment.

9. The District will make every effort to obtain group insurance coverage including Med-Dental Plan, Life Insurance and Long-Term Disability at the most economical cost, consistent with required service and coverage, by obtaining quotations or by negotiation, using whichever method is advantageous to the District.

10. The Board shall purchase Employee Dishonesty Coverage under a Comprehensive Liability Policy for all employees, including members of the Board of Education, with a $100,000 individual limit of liability.

H. Pupil Transportation

It is the intent of the District’s student transportation program to provide all eligible students safe, prompt, reliable and efficient transportation to and from school and on special trips at an economical cost to the District.


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1. The District will make every effort to obtain transportation services at the most economical cost, consistent with required service, by obtaining quotations or by negotiations, using whichever method is advantageous to the District.

2. Since transportation is not a commodity, but a service, it should not be purchased upon the basis of price alone.

3. The Board shall provide transportation for students in full accordance with the laws of the State of Wisconsin per Statutes 121.51, 121.54 and 121.55.

4. Public school students shall be transported to those schools designated by the Board.

5. Eligible students attending public or private schools two or more miles from their homes shall be provided transportation.

6. Eligible students attending public or private schools less than two miles from their homes may be provided transportation if they reside within an area of unusual hazard for walking to and from school.

7. A student is not eligible for transportation consideration if the student, parent, or guardian cause the student to attend a school of the District other than the one designated to serve the area in which the student resides and the student is not enrolled in a Special Education program.

8. The Superintendent/designee shall have the overall responsibility of the transportation program to see that it operates efficiently at all times and fulfills all requirements stipulated by the State of Wisconsin.

9. The Building Administrator/designee shall be responsible for the overall supervision of the transportation of students to and from their schools.

10. The Building Administrator/designee shall make all necessary arrangements for extra-curricular trips such as field trips for instructional purposes, interscholastic events or meets, or club/activity group trips.

11. Drivers shall meet all the requirements of the Department of Public Instruction and the State Motor Vehicle Department in accordance with Wisconsin Statute 121.52.

12. Drivers shall be in uniform while on duty.

13. Any driver who is unsatisfactory in the opinion of the Superintendent/designee shall be replaced.

14. All pupils transported to and from school at District expense shall be transported by bonded carriers.

15. Carriers shall provide proof of adequate liability and property damage insurance coverage, and copies of same shall be kept on file in the School District office in accordance with Wisconsin Statue 121.53(4).


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16. Contracted vehicles must meet all requirements of the State Department of Public Instruction and the State Motor Vehicle Department per Statute 121.52(1)(a).

17. Evidence shall be provided by the carrier that all contracted vehicles are subject to a high standard of preventive maintenance.

18. All routes shall be established by the bus carrier(s), subject to the final approval of the Superintendent/designee.

19. All students transported for participation in an interscholastic event, meet, approved field trip for instructional purposes, or club/activity groups, shall be transported by a District-sponsored carrier, unless otherwise approved by the Superintendent/designee.

20. In all cases, a faculty member or an adult chaperone approved by the Building Administrator shall accompany the group.

21. Except in cases where the parent of an individual student objects, all students transported to school-sponsored events in vehicles other than a school bus shall be required to use a seat belt during such trips.

22. When “Alternative Methods of Providing Transportation” as defined in Section 121.555 of the Wisconsin Statutes is utilized for the transportation of students, vehicle inspection, driver physical exam screening, driving record verification and insurance coverage verification shall be completed and on file in the school office each year prior to the utilization of such vehicles or the use of the services of such drivers.

23. District students with identified Exceptional Educational Needs enrolled in special programs shall be provided transportation.

24. Transportation for these students shall be coordinated between the directors of Exceptional Education and Transportation.

25. An exceptional education student is eligible for consideration for transportation to a private school if the student resides within the established attendance area of the private school and the private school is located within five miles of the District.

26. An exceptional education student is not eligible for transportation if the student, parent, or guardian cause the student to attend a school other than the one designated by the District to serve the particular student’s exceptional education needs.

27. The District shall provide for the same number of days of transportation service to private school students as it does for public school students.


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28. Reasonable uniformity between transportation services provided to public and private school students shall be maintained.

29. The costs of all private school bus routes shall be reviewed annually by the Board and, in cases of atypically high costs of specific routes, the Board may issue parent/guardian contracts to the parents/guardians of children on these routes in lieu of bus service in accordance with Statute 121.55(3).

30. Any pupil whose conduct on the school bus is disruptive, destructive, obscene, or a threat to the health or safety of others is subject to suspension of school bus transportation or other disciplinary action at the discretion of the Principal/designee.

31. The bus rides to and from school are considered extensions of the regular classroom and the same standards of student behavior and discipline shall apply.

32. When inclement weather threatens the safe travel of students to and from school or when other conditions threaten the safety of students, the Superintendent/designee may cancel classes or dismiss school early in accordance with Wisconsin Statute 121.02(1)(f).

33. Students shall be allowed to drive motor vehicles to or from the school site during the school day with the prior approval of the Building Principal/designee.

34. Written requests for permission to drive to or from the school site, submitted by the parent/adult student, are required.

I. Food Service

The purpose of the School Food and Nutrition Program is to serve wholesome, nutritious meals to all students at the lowest possible cost to the District as regulated by the United States Department of Agriculture.

1. All schools shall be equipped to serve the National School Lunch Program.

2. The Board shall continue to review the School Food and Nutrition Program annually.

3. The Superintendent/designee shall have the overall responsibility of the School Food and Nutrition Program to see that it operates efficiently at all items and fulfills all requirements stipulated by the United States Department of Agriculture.

4. The Building Principals shall be responsible for the collection procedure and the overall supervision of the cafeteria, including the enforcement of the stipulation that lunch personnel shall be present when kitchen facilities are being used.


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5. The Building Principals shall be responsible for determining the eligibility of students in their schools for free and reduced lunches and free milk according to criteria established by the Federal Government and approved by the Board.

6. The Business Administrator shall have the general responsibility for the operation of the school food service, particularly in regard to the financial status of the School Food and Nutrition Program.

7. The Supervisor of Food Services shall be responsible for the development and operation of the food service program as regulated by the United States Department of Agriculture.

8. The Supervisor of Food Services shall oversee planning of menus based on sound nutritional adequacy and pupil acceptance.

9. High standards of sanitation and safety are to be maintained in all phases of the school food service program.

10. Lunches served will meet the National School Lunch Pattern as required by the United States Department of Agriculture.

11. Middle and high schools will offer a choice of entrees with an a la carte service being provided in the secondary schools.

12. Lunches shall be provided for the elderly residents of the District in accordance with the Nutrition Improvement Program per Wisconsin Statute 115.345.

13. With the approval of the Building Administrator, recruiting, selecting and supervising the training of new food service employees shall be the responsibility of the Supervisor of Food Services.

14. The Supervisor of Food Services shall be responsible for the overall supervision of the school kitchens and cooking staffs within the schools of the District.

15. Prices for the School Food and Nutrition Program shall be sufficient to cover all costs of operating the program, including salaries, fringe benefits, and non-capital equipment.

16. The District shall participate in the Federal Commodities Program to help offset the cost of food and shall abide by the rules and regulations of that program.

17. The Board shall continue its underlying support of the food service program.

18. The District shall purchase all capital equipment from the General Fund and shall endeavor to obtain the most functional equipment at the most reasonable prices and, whenever possible, competitive quotations or bids shall be sought.

J. Debt Service


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1. The District’s debt limit shall be 10% of the latest certified equalized valuation of the District per Wisconsin Statute 67.03(1)(b).

2. The schedule of payments for principal and interest on Bonds and Long-Term Loans shall be prepared by the Business Administrator working with the designated attorney.

3. Analysis of the District’s existing Debt Service shall be taken into consideration when preparing the schedule of payments.

4. Resolutions stipulating the amount to be borrowed, the purpose for which the money is to be used, the name of the bank, amount of the loan, interest rate to be charged, and duration of the loan shall be recommended to the Board for approval prior to the issuance of the Bonds for Long-Term Loans per Statute 67.05.

5. Prior to the referendum election, notice of referendum, including amount of money proposed, purpose for which it is to be used, and means by which it is to be raised, shall be published in the District’s official newspaper per Statute 67.05(3).

6. A referendum shall be held to obtain approval of the electorate per Statute 67.05(2).

7. Upon approval of the referendum, formal sealed bids shall be sought on the amount required, and bonds shall be sold to the lowest qualified bidder.

8. After authorization by the electorate, the Board shall approve a resolution for levying an irrepealable tax based on Debt Retirement and Interest schedule.

9. The District may use long-term loans, not to exceed ten years, for borrowing to meet contractual obligations per the guidelines set forth in Wisconsin Statute 67.12(12).

10. Bids shall be solicited for all long-term loans which the Board has authorized, and funds shall be borrowed from the bidder offering the most favorable terms.

11. The Business Administrator shall present a resolution to the Board for approval whenever it is determined that a long-term loan in excess of $5,000 is necessary.

12. Upon adoption of the resolution, the Clerk of the District shall, within 10 days, publish a Class I Notice of such adoption.

13. If within 15 days after such publication a petition is filed with the District Clerk signed by 500 electors of the District, such a resolution shall be subject to a referendum election per Statute 67.12(12)(e).


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14. After the 15 day waiting period has expired, or after the referendum has been approved, the Board shall authorize a resolution for levying an irrepealable tax based on the Debt Retirement and Interest schedule.

15. Borrowing funds for the purpose of meeting current expenditures shall be undertaken in accordance with Wisconsin Statute 67.12(8).

16. Whenever short-term borrowing is necessary, the Business Administrator shall secure bids and shall present formal resolutions to the Board for approval which shall include a schedule of interest payments on Short-Term Loans along with other pertinent information including the name of the bank and amount and duration of the loans in accordance with Wisconsin Statute 67.12(8).

17. When deemed necessary, the District may borrow more than once a year and/or establish more than one maturity date for short-term loans.

18. District funds shall be invested in appropriate interest bearing securities consistent with the Statute 66.04(2) limitations.

19. The Business Administrator shall obtain the most favorable terms from a responsible financial institution when surplus funds, not immediately needed to meet current expenditures, are available for investment.

K. Capital Outlay

1. Capital Outlay expenses can be financed out of the current year’s budget, Bond Issues, Long-Term Loans, or Capital Projects Fund.

2. Whenever possible, competitive bids or quotations shall be sought.

3. The Board shall schedule the purchase and installation of service systems, upon the recommendation of the Administration, for old or new structures, so that there will be a continuous trend of replacement without severe fluctuations from year to year.

4. When installing service systems in new structures, the latest technological and energy conservation improvements shall be used.


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V. SITES AND FACILITIES

A. There are many factors to be dealt with pertaining to the various properties owned by a school district. Policies should be written pertaining to the evaluation of existing facil-ity use and adequacy, planning for increases and/or decreases in physical plant needs, and the process of construction of new facilities.


SITES AND FACILITIES CHECKLISTComplete In Progress N/A

A. Evaluating District Property

1. An evaluation and inventory system for accounting and insurance purposes.

2. Inspections and reporting for maintenance and upkeep purposes.

3. System of inspection for safety purposes involving not only in-house personnel, but also involving professional consultants and firms when deemed necessary.

4. System for evaluation of district facilities for program purposes in relation to their spatial, visual, sonic, and aesthetic attributes in terms of desired educational programs of the district.

5. System for evaluation of district sites for program purposes in relating to the current and future applicability for the desired educational programs of the district.

6. Utilization of consultants, teaching staff, administrative staff, community, and specialists as deemed necessary.

B. Determining Facility Needs

1. A five-year statistically sound projection of student enrollments based upon the census report and “third Friday in September” enrollments should be prepared annually.

2. A report shall be submitted to the Board concerning any developments that may have an impact upon site and building needs, such as opening or closing of non-public schools, housing or industrial developments, highway construction, municipal consolidations, or changes in utility services.

3. An annual assessment shall be made pertaining to the financial position and credit rating of the district.

4. The Superintendent/designee must keep the Board informed as to whether the current facilities are under or over capacity in classroom space, athletic, extracurricular, or specialized needs.

5. An annual review shall be made of the financial resources and economic conditions of the community.

6. The Superintendent/designee shall be responsible to recommend to the Board the study or action appropriate to provide the necessary physical facilities in the district.

C. Sites

1. If it is determined that the district must purchase additional land in anticipation of future District needs, the Superintendent/designee shall recommend specific sites for purchase.

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2. The Superintendent/designee, upon approval of the Board, shall represent the Board in all real estate transactions, unless the duties incident thereto may be delegated to subordinates, attorneys, or specialists.

3. The Superintendent/designee shall keep the Board informed as to all land purchases proceedings and negotiations that will lead to a specific request for land purchase.

4. Selection of sites shall take into consideration potential opportunities for unusual and unique development, as well as for satisfying the usual school requirements and cooperative activities with other governmental agencies per Wisconsin Statutes 120.10(5), (5m), (6), and 120.13(18) and (20).

5. When making specific recommendations for purchase, the Superintendent/designee shall report in detail the purpose of the purchase, the evaluation of future needs calling for the purchase, and all other matters related thereto pertaining to items of assessment, access, services, and use.

6. Sites for school purposes shall contain acreage appropriate to the specific purposes intended, plus ample parking area, potential expansion area, and area for recreational needs, using the following approximate sizes:

a) Elementary Schools ten acres

b) Middle Schools thirty-five acres

c) Senior High Schools fifty acres

D. New Construction

1. The board of education shall determine the extent of all new construction based upon reports and recommendations from and through the Superintendent of Schools/designee.

2. New construction is defined to include alterations, replacement, or re-design of all building items to the extent that they shall be maintained in the condition of their original construction or as redesigned to suit newly determined purposes.

3. The Board shall make all initial construction decisions which are of such serious consequence that decisions ought not be rendered without specific recommendations of the Superintendent/designee and construction specialists.

4. The formal selection procedure for hiring an architect shall include a list of potential architectural firms from which the Board may select an architect, along with a recommendation by the Superintendent/designee for an architect to be employed for a particular project.

5. The Board may determine that it is in the best interest of the District to select a particular architect without the use of a formal selection process based on the recommendation of the Superintendent/designee if a specific project or series of projects warrants it.


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6. The Superintendent/designee shall be responsible for drafting all educational specifications on new buildings, assigning such tasks to competent personnel, and training such personnel in knowledge of educational specifications.

7. The Building Administrator of a new facility and the architect will be designated with sufficient lead time so that they can be cooperatively involved in making decisions pertaining to educational specifications.

8. Educational specifications shall include the following minimum requirements:

a) Statement of concepts, purposes and intent.

b) Description of pupils being served.

c) Kinds of educational activities to be carried out in each area.

d) Kinds and amounts of furniture, equipment, audio visual materials, library books, text and reference books needed.

e) Relationships among building areas.

f) Suggested traffic patterns.

g) Spatial site considerations.

h) Any other unique information that will give guidance to the architect designing the facility.

9. Educational specifications, conceptual planning and preliminary drawings should be completed sufficiently in advance of a bond issue so that results of these activities may be used in explaining the program to the public.

10. The primary guiding principle for building design shall be the educational program to be served.

11. The building design shall lend itself to aesthetics, yet consideration shall be given to economic principles by minimizing the combination of the original cost and the long-term maintenance cost.

12. The building design shall provide for as much flexibility and adaptability as possible without deviating from primary guiding principles of the specific educational program.

13. Landscaping services shall be bid as part of the basic contract for school construction.

14. Whenever possible, recreational areas shall be seeded and/or sodded well in advance of a facility’s opening in order that they are immediately ready for student use.

15. Protective landscaping shall be designed in the construction plan so that play areas receive natural protection against wind, snow drifting, rain, or other weather conditions.

E. Lease of District Real Estate

1. District site and/or facilities that are not currently being utilized for school purposes, but are projected to be needed for school use in the future, may be considered for leasing during the interim period.


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2. The Superintendent/designee shall provide an administrative recommendation for such leasing to the Board which shall include terms of the lease as well as future needs of the district relating to the property being leased.

3. Upon determination that a leasing agreement is in the best interests of the district, the Board may recommend to the electors of the district at an Annual or Special Meeting of the district the leasing of specific district sites and/or facilities per Statute 120.13(25) and Statute 120.08(2)(c).

4. Prior to the initial or any subsequent lease agreements, the future need of the district for each property shall be substantiated.

5. Lease agreements and subsequent renewals of such agreements shall require Board action.

6. After the Board determines whether the use of the property is acceptable, leases shall be by single-use agreements or short- or long-term leases at predetermined rates on a first-come, first-served basis.

7. All rental agreements shall define the rights and responsibilities of the renter and provide for protection of the district and facilities.

8. All requested changes shall be reviewed by the Superintendent/designee, but no significant or permanent changes shall be made to district real estate without prior written approval of the Board.

9. All minimal and non-permanent changes shall require approval by the Superintendent/designee.

10. Unacceptable changes in use during the term of any lease shall be grounds for immediate termination.

11. Competitive rates shall be charged with rates being based on full recovery costs to maintain and operate the facilities, including long-term maintenance on a prorated basis.

12. New and renewal leases written for tenants of district facilities may include a provision requiring the payment of a fully refundable security deposit equivalent to at least one month’s rent.

13. If a tenant wishes to have a long-term lease not to exceed fifteen (15) years in duration, the Superintendent/designee may recommend a real estate specialist to represent the District.

14. Long-term lease agreements shall require formal approval by the Board before such agreements become binding upon the district.

F. Sale of District Real Estate

1. When projected levels of district use provide the opportunity, and when it is determined to be in the best interest of the district, the Superintendent/designee may recommend that the Board proceed with a recommendation to the electors for sale of district property.


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2. The Superintendent/designee shall solicit quotes from at least five real estate appraisal firms, from which he will recommend at least two professional independent appraisers to the Board, based on appraisal fee, quality of work and other known qualifications.

3. The Board shall employ two or more independent professional real estate appraisers to determine the “highest and best use” and “fair market value” for the site or facility to be sold in accordance with accepted appraisal practices.

4. The Superintendent/designee shall solicit quotes from area real estate agents, from which he will recommend a list of real estate brokerage firms to the Board, based on experience in handling similar types of real estate, the brokerage fee, quality of work and other known qualifications.

5. The Board shall employ the services of an independent professional, licensed real estate specialist to represent the district in matters relating to sale of district property.

6. The Board may enter into an exclusive listing contract with the real estate agent selected for a period of time not to exceed one year.

7. The listing contract shall be drafted on forms approved by the Wisconsin Bureau of Real Estate or as altered by the district.

8. No listing shall be executed prior to the Board’s receiving a legal opinion from the school district’s attorney.

9. To be acceptable for consideration by the Board, all offers to purchase must be drafted on forms approved by the Wisconsin Bureau of Real Estate.

10. All offers tendered shall remain on permanent file in the District’s permanent files.


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REFERENCES

Board Policies and Administrative Procedures, School District of Elmbrook, Brookfield, Wisconsin, Updated March, 1991.

District Organization and Internal Policies Section

Board of Education Organization and Bylaws Section

Community Relations Section

Business and Non-Instructional Operations Section

Sites and Facilities Section

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CHAPTER 25

IMPLEMENTING COMPUTERIZED MAINTENANCE MANAGEMENT PERSPECTIVE FROM A LARGER

SCHOOL DISTRICT – A CASE STUDY

INTRODUCTION

Maintenance and facility managers at many school districts are being squeezed by the high cost of keeping their facilities and equipment running smoothly. More recently the budget cap legislated in Madison has provided additional pressure. This means that school boards and administrators will look to the maintenance area for funds to finance new programs and staff.

Maintenance has always been the last department considered when improvements in efficiency and cost savings are needed. Maintenance has become a major cost factor in both the public and private sectors.

Developing a Computerized Maintenance Management System (CMMS) can help these opera-tions become more efficient and effectively control labor and material costs.

Convincing the school board and the administration that such a system (CMMS) is needed can be difficult. Technology is outpacing the school system’s ability to comprehend and implement strat-egies necessary to take advantage of the latest developments. Engineering and maintenance data-bases are much more complex than those commonly found in the business office.

Business Viewpoint – Justification of the cost of computerizing the maintenance operation should be presented to school boards from a business point of view. The prediction of more expensive maintenance in the future can be reinforced by making clear to school boards the bene-fits of implementing a computer-managed maintenance program. It can be pointed out that the maintenance function is undergoing tremendous change due to mandated programs and technol-ogy changes. The demand for increased productivity is drawing maintenance to increased sophis-tication in its operation, computerization and improved management techniques.

Getting the facts and figures to justify the cost of such a program can be a problem. Until a CMMS is in place, accumulating actual labor and material costs for each work order or task can be a time consuming project.

It will be necessary to document benefits for a computer-managed system that can be measured through CMMS. Typical measurable benefits include reduced inventory, reduced overtime, reduced emergency cost, work order scheduling, reduced backlog and better identification of equipment that needs replacement with a preventive maintenance system.

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Estimating Potential Savings – How can a maintenance manager measure his results without the tools to measure his performance? Tracking costs is virtually impossible without a computer program, but potential savings can be estimated by establishing a baseline of current costs and establishing reasonable goals. The baseline can be established by researching historical records or collecting cost data for a six month period.

With this data, a graph or chart can be constructed to show the expected results from such a program. As an example, controlling inventory with a CMMS could result in a five to ten percent savings without any decrease in maintenance performance, or productivity can be increased ten to fifteen percent because of better scheduling and less wasted time in searching for materials, traveling unnecessarily between the maintenance department and school buildings, or just waiting for new work orders. An intangible benefit resulting from a CMMS is a saving of time for the maintenance manager. This frees up the manager to spend more time controlling preventive or predictable maintenance rather than “crisis” maintenance.

As a result of measuring maintenance performance, school boards can be shown an expected return on investment, a payback period through resulting savings, as well as improved control of the maintenance function. As a result of all this information, better budgets can be built than can be substantiated with “hard” information: case histories and historical data stored in the CMMS.

The maintenance manager must gather the appropriate data and present the facts in an understand-able manner to school board members and administrators in order to obtain funds to purchase the computer equipment, software and training to effectively implement a successful CMMS.

I. IMPLEMENTING CMMS

A. Getting Started

Staff meetings were held and an audit was preformed to define some of the basic prob-lems confronting the department. Some of the problems defined in the audit follow.

1. Work order system – anyone in the district could write a work order without autho-rization or regard to the budget

2. The preventive maintenance system was done manually

3. Lack of equipment history/failure information

4. Non-existent system to track work orders or project costs

5. Developing reports was time consuming

6. Inventory control was non-existent

7. Work order scheduling was non-existent

8. Budgeting was strictly guesswork

9. Poor efficiency in maintenance department

As a result of this dismal report, a plan of action to correct these problems was devel-oped with special attention upon maintenance efficiency. Some of the common delays were identified and are listed below.

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1. Waiting for orders – morning, noon, and coffee breaks

2. Looking for supervisor to get next job

3. Visiting job site to find out what must be done

4. Unnecessary trips to vendors or inventory

5. Searching for materials and tools

6. Getting requisitions approved

7. Scheduling problems and unnecessary travel

8. Over-manning jobs – “buddy” system

9. Waiting for other workers to finish their phase of job

10. Looking for job site

11. Errors and insufficient information on work order

12. Improper pre-planning of work

13. Poor communication with building staff

14. Late start-ups, extended coffee and lunch breaks and early wash-up

15. Paperwork and meetings

16. Union business

Based on the internal audit and the identification of problems, the necessity to increase performance was confirmed. A better maintenance management system was needed. What must be done to improve our operation was identified. The list follows.

1. An effective organization

2. Improved management control

3. Managed work orders

4. Consistent estimates

5. Correct labor and material charges

6. Equipment history records

7. Backlog control

8. Planning

9. Scheduling and net capacity

10. Stores and inventory control

11. Understanding of preventive maintenance

12. Computerized maintenance management to get management information when needed

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The first step in the plan was to become educated in computerized maintenance man-agement techniques and systems. Various CMMSs were investigated. Maintenance personnel attended many demonstrations. Armed with this new knowledge of CMMS and an update of the latest maintenance techniques, the work order system was revamped and a specification was developed for bidding a CMMS based on this latest information obtained from various sources. Operation and needs were carefully ana-lyzed before the specification was finalized to be sure it would do what best suited the operation. Maintenance personnel paid special attention to the computer hardware needed to do the job. They envisioned, as many professionals warned, that one of the most common pitfalls many others experienced was buying insufficient computing and storage capacity which limits future capabilities as the system develops.

The comment should be made here that it became quite apparent in the beginning that this was a long-term process and the district would need to invest a great deal of time to be successful. It was also felt that maintenance personnel needed to do the work themselves and participate equally to ensure success instead of just buying hardware and software and expecting others to solve the problems. It was understood that as the system developed it would be necessary to regularly audit progress and performance and make adjustments as needed. The district would need to do its own data entry as hiring others would be beyond the budget.

Armed with this knowledge and realistic expectations, our CMMS specification was sent to companies advertising their systems which the district obtained through various sources like seminars, trade magazines, and advertisements received in the mail. Four responses were received to our request for a proposal that could meet the specifications.

Interviews and demonstrations were scheduled with all four companies. The district then short-listed to two companies with systems compatible with our budget and expectations.

Another round of interviews and demonstrations were conducted and a selection was made. The budget at that time was established for hardware and software for a single-user system capable of multi-user conversion at a later date. The equipment was selected with the capability of turning out over 7,000 work orders each year.

The next step was obtaining school board approval for the funds. A presentation was made to the school board using the information developed as discussed in the introduc-tion including slides, graphs, charts and bid proposals. The school board approved the project and budget with words of encouragement. A software license was received and training was initiated.

An important part of the selection process was not only meeting the specifications, but assuring confidence in the software company’s ability to provide support and produc-tive training sessions.

B. System Specifications

The detailed sets of specifications sent to the suppliers is long and too detailed to list here, but the major categories which were requested are listed here to give the reader an idea of the system which was purchased.

1. Labor records and timesheets

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2. Work order (WO) planning and scheduling

3. Finite net capacity, estimating, time slots, repetitive work order standards, backlog graphs, automatic WO scheduling to finite capacity

4. Performance control reports

5. Maintenance budget control

6. Equipment history, data card and spares

7. Stores and inventory management

8. Preventive maintenance

9. General requirements

10. Computer hardware

11. Training

12. Software

C. Planning and Preparation

A great deal of planning was involved and major decisions were made on how to approach the work load and time lines necessary to achieve the goals. The first deci-sion involved staff requirements. It was felt that in order to convince everyone of the need for a new CMMS, additional staff could not be requested for the foreseeable future. An important part of the planning was data entry and work order estimating and scheduling. A way of handling this part of the work load with the existing staff was then devised. The timeline on completion of various tasks was adjusted. To recap the planning process the following list was used.

1. Planning

a) Identify our needs

b) Maintenance audit

c) Develop a maintenance improvement program

d) Switch from manual to computerized

e) Organization

f) Work order system

g) Estimating

h) Planning projects

i) Scheduling improvement

j) Inventory improvement

k) Computerized preventive maintenance

2. Preparation

a) Identify project coordinator

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b) Establish advisory group – Manager of Buildings and Grounds, Supervisor of Maintenance, Supervisor of Operations, and Personal Computer Specialist

c) Determine hardware capabilities

(1) Policies

(2) Mainframe/dedicated, Mini Computer/time share

d) Review maintenance management audit and specify input and output requirements

e) Decide implementation sequence

f) Establish numbering systems

(1) Equipment – cost centers

(2) Parts and materials

(3) Work orders

g) Prepare or purchase suitable software program

h) Plan data entry procedures

II. OBJECTIVES OF MAINTENANCE MANAGEMENT PROGRAM

The following is a list of the major objectives.

A. Maximum operating time and use of facilities at minimum cost

B. Means of collecting cost and other information needed to improve performance

C. Establish methods of evaluating work performance

D. Consolidate maintenance records in comprehensive EDP Program

E. Identify cost reduction opportunities

III. PROBLEMS IDENTIFIED

The problems associated with maintenance cost control were identified as follows:

A. Increasing labor costs

B. Lack of control

C. Urgency of maintenance work; breakdowns

D. Increasing capital costs; spare parts

E. High cost of breakdowns

F. Variable work load; seasonal and random breakdowns

G. Lack of standards

H. Communications problems

I. Lack of equipment standardization

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J. High costs of inventory

K. High costs of maintenance training

IV. EFFORTS TO REDUCE THE HIGH COST OF MAINTENANCE

In order to address the high cost of maintenance it would require efforts in two directions.

A. Decrease the volume of maintenance work

1. Improved preventive maintenance

2. Better operating procedures

3. Correct assignment of budget responsibilities

4. Coordination between facility and maintenance

5. Improved equipment records

6. Analysis of causes for breakdowns

B. Increase performance of the maintenance work force

1. Development of standards

2. Improved planning by controlled backlog – level workload

3. Reduction of unproductive man hours

4. Measured and controlled performance of work force – computer-supported

5. Improved material control

6. Improved training of supervisors and maintenance workers

V. SUMMARY AND CONCLUSION

A. Project Schedule and Status

The system was officially started after preliminary testing using work order scheduling, preventive maintenance, equipment history, and report writer. Equipment inventory and conversion to a multi-user system were features added later.

The system is performing essentially as planned with minor corrections and adjust-ments as expected. Most timelines have been met except for completion of our inven-tory program which was adjusted because of major remodeling in the Buildings and Grounds Department.

Acceptance by the maintenance staff has been slow and not unexpected. Additional training and in-servicing will be required before most problems are resolved and the computerized maintenance management system is fully operational.

B. Future Goals

It is planned in the next few years that all schools can enter work orders directly into the CMMS without a paper work order. Also planned is the entry of all labor hours directly into the CMMS by the maintenance staff without a time card, second-party entry system. This will be accomplished by an electronic timekeeping system posted directly to work orders and will require additional investment in equipment.

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It is recognized that for the CMMS to work more effectively, an additional staff mem-ber is needed to inspect and evaluate work orders, estimate time, order materials on time and schedule work to reduce wasted time completing a work order. The program will not be complete until this is accomplished in the future.

C. Conclusion

Implementing a CMMS involves organization change. Changing the way maintenance is accomplished requires establishing clear and meaningful purposes for the change. Establishing a vision of how maintenance is improved makes employees’ jobs easier and ensures their commitment and involvement in the process.

Having organizational agreement on real maintenance issues and collectively develop-ing new, effective maintenance procedures accelerates the implementation process. Evaluating maintenance indicators keeps the organization on course and improves the maintenance productivity by focusing on the system, not on individuals.

It is the district’s responsibility to take full advantage of the CMMS as a tool to pro-vide the opportunity to do more with less.

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REFERENCES

Effective Computerized Maintenance Management. Paul Juul & Associates, Inc., Bellevue, WA (1987).

Maintenance Technology. January, February and August issues (1988), June and December issues (1989) and February (1991).

Plant Engineering. October 1991.

Building Operating Management. October 1991.

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CHAPTER 26

PAYROLL MANAGEMENT

INTRODUCTION

Processing of payroll on a regular basis is a complex and difficult process requiring strict adher-ence to schedules with considerable cooperation between departments. Failure of any of the vari-ous departments to cooperate by forwarding the proper information to the Payroll Department on a timely basis will result in employees being improperly paid and, in some cases, not being paid at all. Such information as hire dates, changes in both personal and professional status, variances in hours worked, terminations, and paid leave are all critical factors in preparing a proper payroll.

It is very helpful to have a checklist to follow each pay period in order to ensure an accurate and complete payroll and that sufficient controls exist over the payroll process. The purpose of this chapter is to provide a guideline for payroll personnel to follow in collection of data, as well as the procedure to follow in providing proper assistance to employees and documentation for filing payments and reports required by federal, state and financial institutions for the various payroll generated deductions or benefits.


I. GENERAL ORGANIZATION

A. Basic Payroll Procedures

1. All union contract salaries must be based on existing salary schedules

2. Contract salary schedules for all bargaining units are delivered to the payroll department as soon as new contracts have been ratified by both union and board of education.

3. A new employee must complete a W-4 form before a paycheck can be processed.

4. All requests to change deductions must be initiated by completing a new W-4 form.

5. The following information on new contracted or part time employees must be submitted to payroll before a paycheck can be generated:

a) Full name and address

b) Social Security number

c) Starting salary

6. The following additional information must be submitted or determined by the payroll department for employees before a paycheck can be generated:

a) Phone number

b) Date of birth

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c) Sex of employee

d) Starting date

e) Date contract signed

f) Position/Title

g) Salary Schedule placement

h) Hours worked per day

i) Days worked per year

j) Full time equivalency

k) Pay cycle

l) Marital Status

m) Eligible benefits

n) Type of group insurance coverage

o) Regular deductions

p) Elective deductions

q) Earned Income Credit eligibility

r) Number of eligible leave days

s) Number of eligible vacation days

7. Additional information will be necessary on contracted district personnel as follows:

a) Military veteran status

b) Disability status

c) Ethnic group

d) Emergency information such as:

(1) Contact Person and phone number of doctor to be contacted in case of emergency

8. If an employee begins the contract late or terminates early, the annual contract, leave and vacation days should be adjusted for the days actually worked during contract period.

9. All hours worked, overtime hours and account numbers, where applicable, must be reviewed and approved by employee’s supervisor.

10. An employee who misses one or more working days without pay should not be paid overtime unless actual hours worked exceeds either forty hours in any one week unless contract provisions require otherwise.

11. A timeline has been developed which will specify the dates by which the following payroll information must be submitted to payroll each pay period properly authorized, approved, and documented:


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a) Additions to staff

b) Resignations/Retirements

c) Payroll deductions

d) Part-time/extra pay timesheets

e) Changes in status as follows:

(1) Job Classification

(2) Salary

(3) Change in number of contract days

(4) Marital status/beneficiary changes

(5) Change in benefits/deductions

12. Forms for changes in status have been developed by the district.

13. Payroll processing procedures require that administration or board of education authorize hires and rates to be paid.

14. Employees working at more than one location must designate the locations to which their paycheck should be sent.

15. Any changes to the computerized master payroll file must be approved and documented.

16. The person who distributes the payroll is someone who is not responsible for hiring or firing employees and who does not approve time sheets.

17. Payment to district personnel should only be made through the usual payroll, subject to all taxes and retirement requirements, and should not be paid as a stipend or contracted service.

18. Individual earnings records for the current fiscal year are maintained by the district.

19. A historical employment record is maintained for each current employee.

20. Completed payroll registers are reviewed and verified by someone other than Payroll personnel.

21. Staff members should not be permitted a salary advance.

B. Pay Schedules

Determining the type of pay schedule a district follows will depend in large part upon the size of the district and the level of payroll automation. While smaller districts can easily pay everybody on the same day, larger districts may find it desirable to stagger their pay schedules in order to distribute the workload more evenly.

1. Paycheck distribution dates and methods have been established for the following types of employees:

a) Nine/ten month full-time employees


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b) Twelve month full time employees

c) Substitutes

d) Part-time employees

2. A procedure has been developed for paycheck distribution in the event of an emergency school closing on a scheduled payday; i.e., snow day, water problem, etc.

3. Payment of nine/ten month employees

a) Checks will be sent to the designated location where work is performed

b) When school is not in session on a regularly scheduled payday during the school year, checks will be sent to the designated location where work is performed on the last working day preceding the vacation.

c) Forms have been developed on which nine/ten month employees may designate the address to which summer checks will be mailed if it is different from the employer’s home address.

d) All employees who wish to have their checks deposited directly to their bank must complete direct deposit authorization forms.

e) Forms have been developed on which nine/ten month contracted employees have the option of choosing the number of pay periods over which they would like their contract to be paid.

f) Due dates have been established by which nine/ten month contracted employees must submit the forms when requesting an alternative method of receiving paychecks during the summer.

g) Once a staff member has been placed on a specific pay plan, s/he will continue to be paid on that basis each succeeding year unless a written request to change pay plans is submitted to Payroll before the start of a new school year.

h) A change in pay plans is not permitted during the school year unless provided for by contract.

i) Any extra pay earned and approved by the employee’s supervisor will be added to the regular paycheck.

j) Forms and procedures are in place for the automated deposit of funds from the district Payroll bank account to employees’ personal accounts.

4. Payment of twelve month employees

a) Checks will be sent to the designated location where work is performed on every regularly scheduled payday.

b) When a regularly scheduled payday falls on either a weekend or a paid holiday, paychecks will be delivered to the location where work is performed on the last working day preceding that payday.


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c) Any extra pay earned and approved by the employee’s supervisor will be added to the regular paycheck, except where the contract provides for alternate options

5. Payment of substitutes

a) A rate of pay has been established for the following types of substitute teachers:

(1) Regular day-to-day substitutes

(2) Long-term substitutes working a specific number of consecutive days for the same teacher.

b) Payment as a long-term substitute will be based on existing district policy and practices.

c) A pay rate has been determined if a regular teacher covers substitutes when a teacher is absent for a portion of a day.

d) Principals will be responsible for determining training attendance of long-term substitutes and for reporting this information to Payroll.

e) Subs receive no pay for legal holidays

f) Each principal is responsible to authorize and report any subs to Payroll.

g) Substitutes’ paychecks will be mailed directly to their home address, unless the substitute is a district employee receiving a regular paycheck.

6. Payment of part-time employees

a) If a part-time employee works at more than one location, each location must report the time worked there.

b) The pay schedule for nine/ten month part-time employees will be the same as stated in the “Payment of nine/ten month employees” section.

c) The pay schedule for twelve month part-time employees will be the same as stated in the “Payment of twelve month employees” section.

d) Time cards have been developed for use by hourly/part-time employees.

e) Each part-time employee’s hours worked, salary and account numbers must be reviewed and approved by the supervisor.

7. Payment of Extra Duty Assignments (i.e., coaches, club/activity advisors)

a) A form has been developed for reporting any Extra Duty Assignments, which will be reviewed and approved by the Building Principal/designee and forwarded to Payroll.

b) A timeline has been established for the submission of timesheets to the Payroll Department to facilitate payment of Extra Duty assignments on a timely basis.


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c) Timesheets must include the name of the person, the assignment for which payment is requested, the account number to be charged, and the amount to be paid.

d) If the person has never worked for the district before accepting the Extra Duty Assignment, a W-4 form must be forwarded to Payroll before payment is processed.

e) When a person with an Extra Duty assignment is not a regular District employee, the paycheck will be mailed to that person’s home address unless Payroll is otherwise directed.

8. Summer pay procedures

a) A schedule has been established for the dates and methods of payment for those employees working extra hours during the summer months.

b) Forms have been developed for use in mailing summer checks to alternate addresses.

c) Employees wishing to have their summer checks deposited directly to their bank must complete direct deposit authorization forms.

II. DEDUCTIONS/BENEFIT MAINTENANCEEmployee benefits make up a very substantial part of total compensation for employees, yet they often are taken for granted, misunderstood, or not seen as a real cost. Proper maintenance of these benefits can save the employer many dollars while at the same time protect employee coverages. Accurate deduction records can also save time and effort for questions which may arise after the fact. Whenever possible, the individual employee should be made responsible for their own record keeping, but this must be backed up by the employer.

Some deductions, such as federal and state taxes and social security are necessary in any business; however, other deductions and benefits will vary greatly between districts. The guidelines for directing how the deductions or benefits operate will vary greatly also, but it is a good idea to have the policies or procedures clearly stated to reduce the chance for misinterpretation by either Payroll personnel or employees.

A. Generating Deductions/Benefits

1. Payroll deductions are made only upon receipt of written authorization forms from the employee other than federal and state taxes and social security deductions which are directed by law or employee’s share of contract benefits.

2. There are clearly defined guidelines as to the portion of Wisconsin Retirement System contributions that are to be paid as a benefit and the portion that is to be deducted from the employee. (per employee contracts)

3. Group insurances, such as Medical, Dental, Life and Long-Term Disability, have clearly defined contractual guidelines as to the portion that is to be paid as a benefit and the portion that is to be deducted from the employee.


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4. There is a schedule for any Union Dues that are to be deducted from employees’ wages.

5. Forms are available for completion by those employees wishing to have deductions taken for credit union purposes.

6. Forms for donations to such charities as the United Way are available through Payroll.

7. Participation in tax deferred annuity programs is an excellent benefit for school district employees. In some cases, districts allow their employees to participate in any program they choose, and larger districts may elect to limit the plans available so that the number of programs does not get too unwieldy.

There are definite advantages to participating in a tax deferred annuity program including the following:

. . . Employees can defer taxes during higher earning years to a period of lower income.

. . . Deductions are made from pre-tax earnings.

With those advantages in mind, tax deferred annuities will be allowed under the following conditions:

a) Employees electing to participate in a tax deferred annuity program must complete the necessary forms.

b) Only agents authorized by the District to market approved plans are permitted to enroll employees.

c) The employee shall be responsible for computing a legally allowable maximum deposit, hold harmless agreement with assistance of the agent, broker or financial planner.

d) A minimum amount per paycheck should be permitted for payroll deduction subject to individual plan requirements.

e) Deductions must be taken from each paycheck.

f) Changes in salary reduction agreement is permitted each calendar year to the extent allowable by the IRS.

g) Internal Revenue Service regulations provide that a salary reduction agreement must be for a period of at least one year except that this requirement does not apply to the initial agreement if it has less than one year to run at the time it is initiated.

h) A salary reduction agreement may be stopped at anytime during the year.

i) New enrollments, changes in salary reduction amounts, or stoppage of a salary reduction agreement that is at least one year old are permitted any time during the year if proper forms are filed with Payroll at least 20 working days before pay date on which changes occur.

j) If an employee elects to stop a tax deferred salary reduction agreement, a new agreement may be started in a subsequent calendar year.


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k) Employees have been made aware that if a participant decides to transfer one tax deferred annuity contract to another company, it may result in tax consequences unless extreme care is exercised. Advise employee to get appropriate professional advice.

l) Employees have been made aware of who to contact for specific information pertaining to Tax Sheltered Annuities.

8. Flexible Spending Accounts

Flexible Spending Accounts (FSA) under Section 125 are the latest step in the evolution and design of cafeteria plans. FSA can result in tax savings for both the employee and the employer. For the employees, their taxable wage base has been reduced by the amount in the FSA, and for the employer, FICA tax is not paid on employee contribution in the FSA. It must be noted, however, that the reduction in an employee’s wage base may result in a reduction in Social Security benefits, although this reduction is generally modest.

Funding FSA can be accomplished through either employer contributions but is usually accomplished by voluntary salary deductions from employees.

Under the salary reduction concept, at the beginning of the year an employee would select a prorated tax-free contribution to be deducted from each paycheck from which reimbursement can be made for covered expenses such as:

. . .Medical plan deductibles and co-insurance

. . .Employee contributions (premium sharing) to health insurance plans

. . .Unreimbursed medical expenses; i.e., maximum benefit provisions, vision or hearing expenses, annual physicals

. . .Unreimbursed dental expenses

. . .Employee contributions (premiums) for group term life insurance up to $50,000 in coverage

. . .Dependent daycare expenses

. . .Group prepaid legal plan


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One risk of the FSA in some situations is that the amounts set aside by an employee in a reimbursement plan that are not used by the end of the year must be forfeited, because they cannot be refunded to the employee or carried over to another year. This use it-or-lose-it rule should be clearly communicated to all employees before they make their elections for the year.

Smaller districts may be able to administer the FSA with minimal help from legal counsel; however, larger districts would be well advised to hire a Group Administrator to handle the plan implementation. A qualified group administrator can assist with group meetings to explain the plan to employees, initial sign-up of employees, claims processing, issuing reimbursement checks, employer aggregate reporting, employee statements of account and filing of required IRS returns (Form 5500).

For districts desiring to participate in the Flexible Spending Accounts program, the following checklist should be used:

a) A Group Administrator has been contracted with.

b) Group meetings are scheduled at which the FSA program is explained.

c) Literature is prepared that explains the risk of setting aside an amount in the FSA that is more than the expenses the employee will incur during the year.

d) Employees are advised that the reimbursement claims must be substantiated in writing.

e) The literature is provided to employees advising where an employee is reimbursed for dependent care under a cafeteria plan, s/he cannot take the dependent care credit on the income tax return for those expenses.

f) Each month Payroll provides the group administrator with a list of covered employees and the amount withheld from each one.

g) A separate trust account has been established for the FSA administrator’s use in reimbursing claims.

h) A full monthly accounting will be provided by the Group Administrator which will show the current overall status of the district’s account.

i) Monthly statements to the individual employees are provided so each is aware of the status of the FSA account regarding the amount withheld and the claims paid.

j) Employees are given the opportunity to adjust the deduction amount on a yearly basis.

9. An accrual system has been established so that unpaid employee compensation and benefit costs are properly recorded or disclosed.


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10. Appropriate payroll records are maintained for accumulated employee benefits (vacation, pension data, etc.

B. Negotiated Employee Insurances

1. One individual or department in the district has primary responsibility for coordinating all employee insurances.

2. All employees are required to either complete and sign an enrollment card or sign a waiver for each available district insurance (health, dental, life, LTD, etc.). A file is centrally maintained of all such cards.

3. Changes in status (marriage, divorce, birth of child, etc.) are updated on a timely basis with insurance carriers.

4. Individuals leaving district employment (and their dependents) are informed of their rights to continue insurances under provisions of COBRA legislation.

5. The district utilizes coordination of benefits to reduce costs where employees or their spouses have additional coverage.

6. All policy premiums are reviewed every year with the assistance of a qualified insurance consultant to assure that the best rates for identical coverage are maintained.

7. The district should consider an insurance committee with employee (union) representation to attempt to cooperatively hold down insurance costs through various education and/or containment programs.

8. Wellness programs are promoted both to provide for the well being of the employees and to create a positive impact on insurance premium increases.

9. All employees are provided with an updated copy of each district insurance plan in which they participate.

10. A representative of health insurance carriers is available through group meetings or by phone to answer any individual insurance questions employees may have.

C. Mandated Insurance Coverage

1. Workers Compensation

a) Procedures are in place for timely reporting of accidents.

b) Policies are in writing regarding return to work.

c) The district works with the insurance carrier on rehabilitation programs for employees under workers compensation.

d) Various safety/training programs are held regularly to reduce potential on-the-job injuries and illnesses.

e) Reviews of injured employees are regularly made, along with the insurance carrier, to assure a timely return to work.

f) Potentially fraudulent claims for workers compensation benefits by employees are referred to the insurance carrier for investigation.

g) Procedures for annual requirement to post all first reports of injury from preceding calendar year.


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2. Unemployment Compensation

a) One individual is responsible for all UC claims.

b) All UC correspondence for the district is directed to the same administrator or assistant.

c) UC reports are filed in a timely fashion to prevent unnecessary payment of claims due to missed filing dates.

d) Questionable claims are routinely challenged for UC review and/or hearings.

D. Retirement Related Items

1. Wisconsin Retirement System

a) All general (non-teacher) staff employed for more than an anticipated 600 hours per year are included in the provisions of WRS.

b) All teacher employees with an anticipated 440 or more hours are included in the provision of WRS.

c) WRS monies are forwarded on a monthly basis for all included employees.

d) Names of all covered employees are forwarded to WRS at the end of the calendar year.

e) Individual account records provided by WRS are distributed to employees at the end of each year.

2. Social Security

a) All employees have social security deductions taken from their pay upon employment.

b) Social security withholdings are divided into two specific parts, social security (6.2% on a maximum of $76,200 as of 1-1-00) and Medicare (1.45% on a maximum of unlimited as of 1-1-00).

c) Employee and employer withholdings are forwarded as required by law each pay period.

3. Other considerations

a) Availability of tax-sheltered annuities is limited to a reasonable number of providers.

b) Tax sheltered annuity deductions are required to be reviewed by each plan employee and TSA vendor to assure compliance with IRS contribution limits.

c) The District has obtained “hold-harmless” agreements from all tax sheltered annuity vendors regarding employee contribution levels

d) District advising is available to all staff regarding retirement.

e) A payroll “stuffer” is annually given to each staff member indicating the dollar value of regular pay, overtime, and the cost of each individual fringe benefit.


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E. Filing Reports and Payments for Deductions/Benefits

A schedule should be developed listing the various due dates for all payroll liability accounts to ensure that Payroll personnel are aware of deadlines for payments and reports. In some cases substantial penalties will be assessed if payment is not submitted by the scheduled due date, which makes it extremely important to process and send the payments on a timely basis.

1. W-2 totals are always balanced against payroll records and forms are mailed by January 31 each year.

2. Payroll is aware that each year all employers with 250 or more employees must file magnetic media reports accompanied by a Form 6559 Transmitter Report to the federal government with a deadline of the first business day following February 27.

3. Each quarter the Form 941, Schedule B is prepared and submitted to the Internal Revenue Service by the end of the month following the end of each quarter.

4. If all taxes are deposited on a timely basis, a grace period of ten more days is granted after the end of the month following the quarter for which the Form 941 is due.

5. Wisconsin Department of Revenue requirements are for the magnetic media, a transmittal letter, and a Form WT-7 to be filed each year on or before January 31.

6. Deposit slips and payments for federal and social security taxes are prepared and submitted as required by law whenever paychecks are distributed or significant penalties will be assessed.

7. Payments for state taxes are prepared and submitted in accordance with state law whenever paychecks are distributed.

8. Monthly transmittals are due to the Wisconsin Retirement System within one month of the day paychecks are distributed and late deposits are subject to an interest penalty.

9. The annual transaction reports are due to the Wisconsin Retirement System by January 31.

10. Credit union payments will be made the same day as the distribution of each payroll.

11. Tax sheltered annuity payments, Flexible Spending Accounts, union dues, and contributions to charitable organizations must be mailed out on payday.

III. LEAVESA. Paid Leaves

Paid leaves are another benefit that may be granted to District employees. The types of paid leave and number of days granted can vary from one District to another; in fact, the leave days granted may vary within a District between types of employees (i.e., nine/ten month, twelve month, administrators, teachers, classified employees, full-time, part-time). However, it is very important to have a detailed accounting of the types of paid leave granted and the number of paid leave days taken, sot that when somebody has exceeded the District’s allowable days of paid leave, payroll will be aware that a pay deduction is in order.


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1. A comprehensive form has been developed for reporting absences.

2. A schedule of the number of personal illness days allowable has been developed for various employee types usually provided for in union contracts.

3. Allowable paid days for maternity leave has been established by policy or negotiated contract.

4. Allowable paid days for a death in the immediate family is established by policy or negotiated contract.

5. A policy or contract provision stating how many paid absences will be allowed for legal proceedings such as adoption proceedings, wills, real estate closing, or summoning by a government agency such as IRS or State Department of Revenue is in place.

6. A procedure has been established on how compensation will be handled in the case of worker’s compensation injuries.

7. Types of paid absences of school business purposes has been determined; i.e., staff development, state or national organization conventions, curriculum develop-ment, student related absences, organizational/planning, extra-curricular, visitations, or union business.

8. Contract provisions have been established on how compensation will be handled if an employee is requested to serve on jury duty or appear in court as a witness.

9. A policy or contract provision has been developed on how military leave will be handled.

10. A schedule of paid vacation days and paid holidays is included in the negotiated contracts for the various types of employees.

11. A policy or contract provision has been developed on how unused paid leave may be accumulated.

B. Unpaid Leave

If an employee is unable to work the number of days specified in the contract, and the employee either has no paid leave or vacation days available or the absence is not an allowable paid leave day, a payroll deduction will be taken using the daily salary calculated by dividing the annual salary by the number of contracted days or calculated according to provisions contained in negotiated contracts.

1. Maternity leave exceeding the allowable paid leave days will be deducted.

2. Extended personal illness exceeding the allowable sick leave will result in a payroll deduction.

3. A policy has been established by which an employee can request and be granted an unpaid leave of absence.

4. If an employee is suspended from duties for disciplinary reasons, a payroll deduction may be taken. Check with legal counsel prior to withholding pay.


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5. Benefits may cease under unpaid leave provisions of union contracts. An employee on long-term disability may be considered on unpaid leave.

C. Family and Medical Leave Act

Since passage of the Family and Medical Leave Act, employees are afforded the opportunity to take an extended number of days for medical reasons involving not only the employee, but also members of the employee’s immediate family. Federal and State Law define a Family Medical Leave as follows:

. . . An employee is a person who has worked for an employer for at least twelve months and has worked at least 1000 hours over the previous twelve-month period.

. . .Family Leave is an unpaid leave of absence from work, unless other forms of paid leave are also available such as sick leave or compelling personal leave provisions.

. . .Family Leave is available for reasons of birth or adoption/placement of a child, the serious illness of the employee or the serious illness of a family member set forth in Federal and State law.

. . .The employee can select the length of the leave with a maximum of twelve (12) weeks in a twelve (12) month period.

. . .At the end of the Family Leave, an employee has the right to reinstatement to the same job or to a job with the same pay and substantially similar duties.

. . .If the employee’s medical leave involved his/her personal illness or injury, medical certification releasing the employee to return to work must be provided.

. . .Benefits coverage must be continued during the Family Medical Leave.

1. Both Federal and State laws have been reviewed for their appli-cability.

When a Family Medical Leave is granted, it is important for the district to have guidelines to follow in administering the program.

1. Non-compliance with Family Leave requirements or failure to provide required information may result in a denial or termination of Family Leave.

2. A time limit has been established for the submission of a completed medical certification form once approval of a Family Medical Leave due to the employee’s own illness or injury, or to care for an ill family member has occurred.


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3. Family Leave is available for reasons of birth or adoption/placement of a child.

4. If eligible, earned vacation, accrued sick leave or other paid leave may be used for all or part of a requested Family Medical Leave.

5. An employee taking Family Medical Leave days in excess of the allowable paid leave will have a payroll deduction.

6. A policy has been established pertaining to what portion of benefits will be paid by the district and what portion the employee will pay while on leave.

7. A form has been developed for the employee to complete when requesting a Family Leave which should include the following:

a) Reason for the Family Leave request

b) Anticipated dates of the leave

c) Requested days of vacation to be used toward Medical Leave

d) Requested days of paid sick leave to be used toward Medical Leave

e) Anticipated days of unpaid leave applying to Medical Leave

f) A section to be completed by the Personnel Administrator indicating the number of days approved and the number of authorized days of vacation, paid and unpaid leave.

IV. FAIR LABOR STANDARD ACTUnder the Fair Labor Standards Act, work in excess of 40 hours per week initiated by an employee, whether or not requested by an employer, but permitted to be done, is compensable time and must be counted as part of the employee’s work week.

If the employer knows or has reason to believe that work is being performed, even while that work is performed at home, such work is considered compensable time. The employer need not have required, directed, or suggested that the employee work. So long as the employer is aware of the fact that the work is being performed, such work is considered compensable time. The issuance of a rule or procedure requiring authorization prior to the working of extra hours is not sufficient.

In all cases, it is the duty of management to affirmatively act to ensure that work is not performed which it doesn’t want performed. The mere promulgation of a rule against such work is not enough. Management must make every effort to enforce the rule.

A. In accordance with the Fair Labor Standard Act, employees will be compensated at the rate of time and one-half for all hours worked in excess of 40 hours per workweek.

B. Overtime is owed only for actual hours worked exclusive of paid vacation leave, sick leave or compensatory leave.


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C. A procedure has been developed for employees to request written or verbal approval from the supervisor prior to when the employee wishes to work overtime to ensure that unnecessary work is not performed.

D. In lieu of monetary overtime compensation, employees may be offered compensatory time at the rate of time and one-half.

E. Such compensatory time may not accumulate in excess of specific contract limits.

F. After an employee reaches the contract limit of accumulated compensatory time, employees must be paid in cash for all hours worked in excess of 40 hours per workweek.

G. All overtime/compensatory timesheets must be reviewed and approved by the employee’s supervisor before being submitted to Payroll.

V. TERMINATIONS/RESIGNATIONS/RETIREMENTSIt is a good idea to have clearly defined procedures to follow when an employee terminates their employment with the district. This may prevent any misunderstandings relative to the amount of the final check or termination of benefits. Unused vacation days, possible insurance coverages, and possible Flexible Spending Account balances could be benefits subject to dispute.

A. Terminations must be communicated immediately to both Personnel and Payroll departments and accepted by the Board of Education.

1. Employee-initiated terminations are secured in writing with employees’ signature.

B. A form has been developed which will include the following information:

1. Name of employee terminating

2. Position/Title

3. Termination date

4. Insurance information under COBRA

5. Flexible Spending Account information

6. Accumulated/unused vacation or compensatory time

7. Accumulated/unused paid leave

8. Employee signature.

C. A final paycheck will be processed on the next payday following the termination, unless the terminated employee requests a paycheck within the three-day period specified by law.

D. Payment of unused accrued vacation time or compensatory time will be included in the final paycheck.


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REFERENCES

Payroll Services Information. Madison Metropolitan School District, Madison, WI, 1993-94

Administrative Procedures for Small Institutions. National Association of College and University Business Officers, 1985.


Handbook for School Business Officials. Illinois, ASBO, Updated 1990.

American Payroll Assn., 711 Navarro Street, San Antonio, TX 78205, www.americanpayroll.org

CPI Data: Bureau of Labor Statistics, Suite 4175, 2 Massachusetts Ave., N.E., Washington, DC 20212-0001, www.bls.gov

Payroll Tax Forms: Internal Revenue Service, www.irs.gov

Hand for Eval - WASBO · ACKNOWLEDGEMENT This updated handbook is being made available to all...

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