Week 5 - School Finance Reflection

Starting with week 1 where I learned about the history of school finance and ending with week 5 where I gained an understanding of the Code of Ethics for School Leaders from the Texas Administrative Code, I have gained a detail overview of the entire school finance system. While I still have a lot to learn, exploring the relationship of the superintendent and school board as it pertains to the budget, analyzing the budget process and how it is developed, interviewing my superintendent and district CFO, exploring goal driven budgeting, reviewing the various funds/ monies that make up a school budget, and examining the components of FIRST, have given me more confidence in my ability to work with a school budget.  The budget has always been the main area I feel I need more improvement in.

In reflecting on my ability in each of the 11 quality indicators of Competency 8, I still feel as though I have a lot to learn about the budget process.  Although I have a better understanding of the school budget process, I don’t think I will consider myself competent until I actually have been a part of this process as a superintendent. I have gained a greater understanding of the Financial Integrity System of Texas and the audit process and would feel competent in this area now.  When it comes to personnel or collaborating on the budget, I feel I have gain adequate knowledge and feel competent in these areas as well.  However, it seems like the more I have learn about School Finance, there is even more I need to learn. I know I will only want to be a superintendent in a district that has a CFO and a history of being ethical and effective with their monetary resources.

Having a wiki group was very helpful in this course. We had to communicate consistently to not only understand the assignments, but to complete them.  We had to collaborate to effectively complete the tasks assigned to us.  I appreciate each of my team members’ efforts.  As well as being helpful in the learning process, the wiki group process also reminded me that the budget process will be a group effort too that will require open communication and collaboration.

Interview with the District CFO

Our district has received a Superior rating for the last several years on our FIRST report. Our CFO contributes this success to making sure that the budget books are prepared based on TEA guidelines and working with the auditors through the year to get all the information they need to complete the audit. He also stated that the district makes changes in procedures based on audit recommendations and tries not to have the same exceptions year after year.   He explained that to find an external auditor, the district request proposals from interested audit fims and then makes a selection based on their expertise, staffing capacity, and services offered.  When asked about the actual audit procedures, he stated that the auditors conduct an interim audit during the year to make sure that the district is following policies and procedures established.  He explained that sample transactions are pulled for verification. He went on to state the the year-end audit is done after the books are closed and schedules are created.  Then the schedules are reviewed against the books for accuracy.  He stated that the auditors can pull more samples for further review as needed. He concluded that the audit findings are created based on exceptions found on the samples pulled for review. Our CFO then explained that the audit report refers to the internal control structure and how well the systme can eliminate or detect any wrong doing. It also refers to the reliability of the data presented on the report.  When asked at how the results are communicated, he answered that all the findings are reported on the audit report and are presented to the board of trustees and to TEA.  - Denise