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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.