Performance Monitoring/Monthly Dashboard Reporting IASBO Annual Conference 2008 Budgeting and...

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Performance Monitoring/Monthly Dashboard Reporting

IASBO Annual Conference 2008

Budgeting and Financial Planning Professional Development Committee

Presenters:Susan Shepard, Ast Supt/Business Services, CCSD 62

Jon Hitcho, Ast Supt/Business, Addison SD 4

Moderator:Michele Slav, Director/Business Services, HSD 203

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Performance Monitoring/Dashboard Reporting

• Purpose:– To introduce and lead the way for the

discussion/implementation of the concepts of Performance Monitoring and Benchmarking in public school finance to highlight the transparency and accountability of Business Managers and their respective Districts.

– To use that data to help make sound financial decisions.

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Purpose for a Business Manager and a School District

• Accountability.• Transparency.• Communication.

– Board of Education.– Community/Constituents.– Staff Members.

• Create an Environment of Trust.• Tool for Decision Making.

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Performance Monitoring with Benchmarking

• Internal– Driven by values held inside by the

organization.

• External– Driven by values held by the organization

comparing themselves to other entities (IE. How they “Stack Up”).

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Internal Performance Monitoring

• District Goals– Board of Education goals.– Driven by Board Policy and Procedures.– Strategic Planning.– District Mission.– District Vision.– Business Office Goals, Objectives and

Principles.

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Internal Performance Monitoring

• Treasurer’s Reports.– Balance Sheets.– Revenue/Expense Statements.– Statement of Changes in Financial Position.– Cash Flow Projections.– Expense Trending.

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Internal Performance Monitoring

• Illinois Financial Profile Ranking– Five Major Areas of Financial Performance.

• Fund Balance to Revenue Ratio.• Expenditure to Revenue Ratio.• Days of Cash On-Hand.• Percent of Short-Term Borrowing Maximum Remaining• Percent of Long-Term Debt Margin Remaining.

– Rates the District.– Can Give up to a Six (6) Year Comparison to Measure

Financial Health Internally.– http://www.isbe.net/sfms/P/profile.htm

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Internal Performance Monitoring

• Dashboard Reporting:– Incorporates Budgets and Annual Financial

Reports (AFRs).– High Level Summary Information:

• Helps Organizations Communicate Strategy.

• Monitor and Adjust the Execution of their Strategy.

• Deliver Insights to All.

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Internal Performance Monitoring

• Financial Projections:– Should be at least five (5) Years of Data.– Should be based on key economic and policy

decisions.– Should be updated with current data.– Can be tracked in a variety of ways.– Integral in understanding the long-range effects

of Budget decisions.

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External Performance Monitoring

• Illinois Financial Profile – Five Major Areas of Financial Performance.

• Fund Balance to Revenue Ratio.• Expenditure to Revenue Ratio.• Days of Cash On-Hand.• Percent of Short-Term Borrowing Maximum Remaining• Percent of Long-Term Debt Margin Remaining.

– Rates the District.– Can Give up to a Six (6) Year Comparison to Measure

Financial Health Externally v. Other Districts.– http://www.isbe.net/sfms/P/profile.htm

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External Performance Monitoring

• Equalized Assessed Valuation (EAV) per Average Daily Attendance (ADA).– Can Show the Strength of the Community Financially.

• Operating Expense Per Pupil– Determined by Perception

• Tax Rates.– Compare by District Type (i.e. Unit, K-8, and HS)

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External Performance Monitoring

• Available Debt Capacity– Shows the Potential for Borrowing.

• Bond Rating.– Shows the District’s “Credit Rating.”

• Step/Lanes of Salary Schedule– Negotiated Agreement

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Incorporation of Data

• Instructional– Illinois Report Card Data.

– ISAT

– PSAE

– MAPS

– AIMSWEB

– Iowa Basics

– Average Yearly Progress (AYP)

– Extremely Important

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Incorporation of Data

• Staffing.– Number of Full-Time Employees to Student Ratios

• Teacher to Pupil

• Administrator to Pupil

• Administrator to Teacher

– Number of Full-Time Employee History.• Academic

• Demographic

• Experience

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Incorporation of Data

• Facility/Operations– Cost Per Square Foot– Facility Condition Index

• Facility Renewal and Repair Costs/Replacement Cost of the Asset

– Good (0 to 5%)– Fair (5 to 10%)– Poor (10 to 30%)– Critical (30% and Over)

– Utility Costs

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Practical Examples to Implement and Start the Process

• January– Mid-Year Monitoring of Revenues/Expenditures

• February– Staff Development.

• March– Staff Attendance

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Practical Examples to Implement and Start the Process

• April– Staffing

• May– Health Insurance

• June– Workers’ Compensation Insurance

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Practical Examples to Implement and Start the Process

• July– Utilities

• August– Enrollment

• September– Year-End Monitoring Revenues/Expenditures

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Practical Examples to Implement and Start the Process

• October– Financial Profile Rating– Web Brochure

• November– ILEARN/Financial Comparison 2 3– http://webprod1.isbe.net/ilearn/ASP/index.asp

• December– Tax Levy

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Internet

• Websites– Powerful Communication Medium that is

Interactive, Unstratified, and Multi-Channeled plus its easy!

• http://www.d62.org/schoolboard/dashboardreports.html

• http://www.lz95.org/business/dashboard_indicators.htm

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Conclusion

• Need to get this topic in the forefront of our colleagues to stay ahead of the curve.

• Need to be accountable and transparent in our practices to our community.

• Need to communicate realistic data (good or bad) to help make sound decision making.