THE FINAL WORD

Sounding Off About School District Accounting

SEAN CARNEY

ASST. SUPT./FINANCE & OPERATIONS/CSBO

ADLAI. E. STEVENSON HSD 125

I believe the CSBO is… the most important role at Adlai E. Stevenson High School. Similar to all of my colleagues, we must effectively manage the balance between the financial obligation on our taxpayers and operational needs of our organization to ensure success for every student. We are the ones that get it done. We might not be in the classroom or work directly with students, but we are a very important part of the process.

What do you see as the biggest accounting challenge(s) facing school business officials?

In my opinion, the biggest accounting challenge for school business officials is finding a method for districts to compare their finances. More specifically, a method of comparison that our various communities understand and trust. The State has tried to create a mechanism for this type of comparison (Operating Expense Per Pupil), but it is difficult for a taxpayer to understand the formula. Furthermore, the State now utilizes a different method to calculate OEPP for the district report card.

Accounting issues to watch…

We all need to pay attention to the various GASB standards that are enacted. Additionally, I believe there are two specific accounting issues that a district should watch for:

• Fund Balances – Does your community understand your fund balance?

Are comparisons made to other districts that might not be similar to yours?

Is your fund balance inflated because of receipt of early property taxes?

• Accrued Liabilities – OPEB, retirement and absences.

What can districts do to improve their accounting process?

If a district is concerned about their accounting practices or procedures, I would recommend starting with a review of prior year audits and/or discussion with your auditors. I would also recommend talking to your peer network. Why reinvent the wheel, when many of us have updated procedures and practices.