Businesss
BesstPrracticesinB
OperattionssofPub
blicSScho
ool
Disstriccts
GoodFinanciialManaagementtSupporrtingTeeachingand
Learn
ning
LastUpdaated:May7,2015
LastReviiew:May7,2
2015
453NewK
KarnerRoad,A
Albany,NewY
York12205|w
www.nysasbo..org|518‐434
4‐2281
Wouldyouliketoseeanothertopicinthismanual?
Use this form to suggest topics you would like to see added to this Best Practices handbook
I would like to see the following topic included in this handbook:
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
I would like to serve as an author or reviewer (please specify) for the following topic:
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
I would recommend you invite ___________________________to serve as an author or reviewer
(please specify) for the topic of ____________________________________________________
Please send this information to: asbomail@nysasbo.org
Introduction
1
CO NTENTS
S
Introducttion ..................................................................................................................................................... 4 Understa
and and Man
nage Reserve Funds ...................................................................................................... 6 Maximizee Aid with Contract
C
Tran
nsportation Resulting
R
froom RFPs ........................................................ 8 Submit Contracts
C
and
d Contract Extensions
E
Th
hat are Timeely and Accu
urate......................................... 10 Understa
and Mileage Requirement
R
ts for Pupil Transportati
T
ion................................................................ 12 Manage Bus
B Replacem
ment and Ma
aintenance Records
R
for E
Each Vehiclee ............................................... 14 Manage Grants
G
for Cash
C
Flow an
nd Intent ................................................................................................. 16 Maximizee State Aid for
f Special Education
E
Pla
acements ........................................................................... 18 Claiming
g Aid for Special Educatio
on Services During
D
the S ummer ........................................................ 20 Timely Su
ubmission off Final Cost Report
R
for Capital
C
Projeects .............................................................. 22 Engage in
n Long-Rang
ge Financiall Planning ............................................................................................... 26 Conclusio
on ..................................................................................................................................................... 31 Contribu
utors .................................................................................................................................................. 31 The information provided in publications, webinars,
w
conferencces or other meanss sponsored in whhole or in part by thhe New York Statee
Associa
ation of School Business Officials (N
NYSASBO) is intended solely as a puublic service to its membership, and is not intended to
constiitute or take the pllace of legal, finan
ncial, or other proffessional advice reendered in the conntext of a contractuual professional
relationsh
hip. NYSASBO doees not guarantee th
he accuracy, releva
ance, timeliness orr completeness of information providded in such formats.
Any views expressed
e
by indiviidual authors, pressenters or speakerrs are theirs alone and do not necesssarily represent thhe views of NYSASB
BO.
NYSASB
BO disclaims all liiability and/or resp
ponsibility for dam
mages and/or harm
m allegedly arisingg out of reliance oon the information
provided in NYS
SASBO’s publicatiions, webinars, connferences or otherr means.
2
New York State
S
Associattion of Schoo
ol Business O fficials
Introoduction
3
INTRO
ODUCTIO
ON
Good financial manag
gement of scchool districtt resources iss critical to achieving thhe school district’s
o providing quality edu
ucation to its students. W
While the ccomplexity of school business
mission of
managem
ment has increased over thee years, best practices
p
can be identifiedd. If followedd, they can heelp the
district maximize
m
the potential of business
b
operrations to suppport and enhhance the disstrict’s educaational
programs.. NYSASBO is seeking to
o develop a co
onversation w
with New Yorrk’s school buusiness comm
munity
about besst practices. This
T
manual provides
p
bestt practices in nine areas frrom managinng fund balannce, to
pupil tran
nsportation to
o accounting for capital projects andd special eduucation to lonng range finaancial
planning. We invite ou
ur readers to suggest otherr areas wheree best practices can be ideentified and, w
where
ntribute descriiptions in bestt practices.
expertise exists, to con
ual will form
m the basis forr professionall developmennt sessions forr new schooll business stafff and
This manu
for board members and
d superintendeents who oveersee the workk of such staff
ff.
4
New York State
S
Associattion of Schoo
ol Business O fficials
Introoduction
5
UNDERSTAND AND MANAGE RESERVE FUNDS
Patricia Service, pservice@nysasbo.org
(Last Updated: 5/6/15, Last Reviewed: 5/6/15)
The Issue
The New York State Comptroller’s guidance on the Reserve Fund describes the importance of Reserve
Funds for good financial management.
“Saving for future projects, acquisitions, and other allowable purposes is an important planning
consideration for local governments and school districts. Reserve funds provide a mechanism for
legally saving money to finance all or part of future infrastructure, equipment, and other
requirements. Reserve funds can also provide a degree of financial stability by reducing reliance
on indebtedness to finance capital projects and acquisitions. In uncertain economic times, reserve
funds can also provide officials with a welcomed budgetary option that can help mitigate the need
to cut services or to raise taxes. In good times, money not needed for current purposes can often
be set aside in reserves for future use. “
Legal Reference













Repair Reserve Fund (GML Section 6-d)
Workers’ Compensation Reserve Fund (GML Section 6-j)
Mandatory Reserve Fund (GML Section 6-l)
Unemployment Insurance Payment Reserve Fund (GML Section 6-m)
Insurance Reserve Fund (GML Section 6-n)
Employee Benefit Accrued Liability Reserve Fund (GML Section 6-p)
Retirement Contribution Reserve Fund (GML Section 6-r)
Property Loss Reserve and Liability Reserve Fund (Education Law Sections 1709[8-c],
1950[4][cc])
School District Capital Reserve Funds (Education Law Section 3651)
Tax Certiorari Reserve Funds (Education Law Section 3651)
Tax Reduction Reserve Funds for School Districts (Education Law Sections 1604[36], 1709[37])
Career Education Instructional Equipment Reserve Fund (Education Law Section 1950[4][ee])
Uncollected Taxes in a City School District (Education Law Section 3651(1-b)
Best Practices
1. Familiarize yourself, the administrative team and the Board of Education as to the purpose and
rules of Reserve Funds. Listed above are Reserve Funds available to school districts and
BOCES. 1 But not all school districts or BOCES can establish each of the listed funds. For
example, the big five school districts, school districts with more than 125,000 inhabitants, cannot
use the Insurance Reserve Fund, Employee Benefit Accrued Liability Reserve Fund or the
Retirement Contribution Reserve Fund. Only a BOCES can use the Career Education
Instructional Equipment Reserve Fund.
1
Each reserve should be examined for applicability to school districts or BOCES as they are not all
available for all.
6
New York State Association of School Business Officials
2. Sh
hare the Neew York Staate Comptrolller’s guidancce documentt with intereested parties. The
do
ocument can be found at th
he link noted below in the resource secttion.
3. Review
R
your district’s
d
reserrve funds ann
nually to assurre that the funnding level iss appropriate based
on
n the prescrib
bed purpose of the Reserrve Fund. Shhare an updatte with the S
Superintendennt and
Board
B
of Educcation.
4. When
W
establish
hing a Reserv
ve Fund, docu
ument the reassons and the ddollar amounnt. Keep a recoord of
diiscussion witth the Board of Education
n and any Booard action. K
Keep the doccumentation iin the
bu
usiness officee.
5. Sh
hare informaation with yo
our external auditor
a
duringg the school year as youu make changges to
Reserve
R
Fundss.
m the
6. Iff the district changes the level
l
of fund
ding in a reseerve fund, doccument the reeasons, inform
Board
B
of Educcation and keeep a copy of th
he resolution in the busineess office.
Resourcess

New
N
York Staate Office of State Comptrroller guidannce documentt: This docum
ment outlines all of
th
he reserves av
vailable to mu
unicipalities and
a school disstricts
o

http://o
osc.state.ny.u
us/localgov/pu
ubs/lgmg/reseervefunds.pdff
New
N
York Sttate Office of
o State Com
mptroller Locaal Governmeent and Schoool Accountaability
Accounting
A
Releases: The state may create new reeserves or claarify requirem
ments relatedd to a
reeserve. This in
nformation iss released in a bulletin. Bullletins can be found at thiss link
o
http://o
osc.state.ny.u
us/localgov/pu
ubs/releases/ppastreleases.hhtm
Underrstand and Maanage Reservve Funds
7
MAXIMIZE AID WITH CONTRACT TRANSPORTATION
RESULTING FROM RFPS
Gregg Diefenbach, gregg.diefenbach@nysed.gov
(Last Updated: 5/6/15, Last Reviewed: 5/6/15)
The Issue
What are the most common mistakes districts make with pupil transportation contracts, that result from
requests for proposals, and that will affect Transportation Aid?
Legal Reference



Education Law section 305 (14)
General Municipal Law section 103
NYSED Commissioner’s Regulations – 8NYCRR Section 156.1
Best Practices
1. Develop a quality bid document and scoring system:
a. Develop specifications for the services to be delivered. It is recommend that the bid use
an add /delete clause for all areas of major expense: bus, route, child, and attendants
b. Determine how cost will be bid. For example: per bus, per child, per four hour bus run,
per attendant, etc.
c. Establish clear quantities of service. For example: number of routes, number of students.
d. Determine the number of points available for each of the 10 criteria used for scoring.
e. Set a minimum score which must be met in order to win an award.
2. Advertise the RFP in the district’s official newspaper. The advertisement should contain at least
the 10 criteria and possible points for each, the minimum score necessary to award a contract, the
bid opening date and location.
3. Form a committee to score every application that is received, even if only one is submitted. It
must meet at least the minimum score to receive an award. It is recommended that Transportation
Director not be on the scoring committee.
4. Submit a copy of all RFP materials including advertisement, specifications and quantity
information, applications received, scoring sheets, resulting contract(s) to NYSED in a timely
fashion.
5. Not following the requirement of Ed. Law section 305 (14) regarding bid advertisement and bid
opening dates. The law provides that there must be at least 5 full days between the first day of
advertisement (competitive bid or RFP) and the actual date of bid opening.
6. School districts may enter into transportation contracts for a period not exceeding five years (see
Education Law §1709[27]), so the cooperative bid or RFP should clearly state the term of the
resulting contract.
8
New York State Association of School Business Officials
7. Not
N meeting th
he requiremeent to conducct competitivee bidding if tthe total aggrregate value of all
neew contracts to be awardeed for new school year foor a given coommodity, arre at or exceeed the
$2
20,000 thresh
hold. If so, th
hen all contrracts must bee bid, not sim
mply the onee which makees the
ag
ggregate totall reach $20,0
000 or more. If a new conntract is needeed after the ffirst day of scchool,
th
hen all other contracts isssued 3 dayss before or aafter that conntract would be combineed for
deetermining whether
w
the $20,000 thresho
old would be met or exceeded. If so, theen all must bee bid.
8. Iff you are part of a Cooperaative Bid, you
u must have sspecified a quuantity of morre than zero ffor the
item to be aw
warded. Districts, including
g those that aare part of a Cooperativee, may not “ppiggybaack” on the award
a
of ano
other party to
o the Cooperaative bid. Yoou must have bid quantityy. In a
co
ooperative RF
FP only distriicts that have quantity mayy make an aw ard.
9. Responding
R
to
o faxes sent or phone callls from NYS
SED staff to the contractt contact persson is
im
mportant. Not responding may delay the
t approval of the contrract. If the diistrict changees the
reesponsible staaff member for
f the contrract the new contact inforrmation shouuld be sharedd with
NYSED.
N
Resourcess

NYSED,
N
Pupill Transportatiion
o Phone: 518-474-654
41
www.p12.nyssed.gov/schoo
olbus/
o http://w

NYSED,
N
Statee Aid
o Phone: 518-474-2977
o https://stateaid.nyseed.gov/
Maxim
mize Aid with
h Contract Traansportation R
Resulting from
m RFPs
9
SUBMIT CONTRACTS AND CONTRACT EXTENSIONS THAT ARE
TIMELY AND ACCURATE
Gregg Diefenbach, gregg.diefenbach@nysed.gov
(Last Updated: 5/6/15, Last Reviewed: 5/6/15)
The Issue
Once a pupil transportation contract has been accepted by the Board of Education it must be submitted to
NYSED. Initial contracts or contract extensions must be submitted to NYSED within certain standards in
order to generate aid.
Legal Reference



Education Law section 305 (14)
General Municipal Law section 103
NYSED Commissioner’s Regulations – 8NYCRR Section 156.1
Best Practices
1. Pupil transportation contracts and extensions must be filed with NYSED within 120 days of the
first day of service. The Office of Educational Management Services can still approve the
contract however the Office of State Aid will deduct aid for each day late.
2. Executing a contract in the correct manner and date order for required signatures is important. If
done incorrectly the contract may be disapproved. Leaving signatures blank or not calculating
total cost are two typical mistakes. The following are basic signatory requirements:
a. Agreement Date must be before the first day of service
b. The Board President and the Contractor sign with the Agreement Date
c. Superintendent must sign the contract on or after the Agreement Date
3. Submit the contracts or contract extension by the required dates. Missing the June first and July
first deadline dates for bidding regular home-to-school and special education contracts may lead
to a contract not being approved. If a district supplies a reason for the late filing the program
office may accept it.
4. Watch the start and stop dates of the contract such as beginning a Summer Contract or Extension
before July first or running it after August 31st or beginning a School Year Contract or Extension
before September first or running it after June 30th.
5. Using the correct form and completing all the information will speed up approval. A link to the
forms and instructions is listed below.
6. Responding to faxes sent or phone calls from NYSED staff to the contract contact person is
important. Not responding may delay the approval of the contract. If the district changes the
responsible staff member for the contract, the new contact information should be shared with
NYSED.
10
New York State Association of School Business Officials
Resourcess



NYSED,
N
Pupill Transportatiion
o Phone: 518-474-654
41
o http://w
www.p12.nyssed.gov/schoo
olbus/
NYSED,
N
Statee Aid
o Phone: 518-474-2977
o https://stateaid.nyseed.gov/
Contract
C
exten
nsion forms an
nd informatio
on
o http://w
www.p12.nyssed.gov/schoo
olbus/contraccts.html
Submit
S
Contrracts and Con
ntract Extensioons That are T
Timely and Accurate
11
UNDERSTAND MILEAGE REQUIREMENTS FOR PUPIL
TRANSPORTATION
Gregg Diefenbach, gregg.diefenbach@nysed.gov
(Last Updated: 5/6/15, Last Reviewed: 5/6/15)
The Issue
Non-city school districts are required to provide transportation to and from school for all students. The
law does not differentiate if the student is in a public or private school. The statutory mileage limits are
different than the mileage limit set in the state aid calculation. Districts that consider changing the
mileage limits for transportation should review the last voter authorized mileage standards.
Legal References


Education Law sections 2023 and 3635
NYSED Commissioners decisions: 46 Ed Dept. Rep 565 (2007), 22 Ed Dept. Rep 381(1983), 1
Ed Dept. Rep 381 (1959)
Best Practices
1. Know the miles limitation when the district must transport students and compare those state
minimums to the district’s policy. For districts other than city districts transportation must be
provided to elementary (K-8) pupils who live more than two miles and up to fifteen miles from
the school they legally attend. For pupils in grades nine through twelve, transportation must be
provided if they live more than three and up to fifteen miles from the school they legally attend.
2. Pupils living more than 1.5 miles from school are considered allowable students in the calculation
of the non-allowable pupil decimal used in the calculation of Transportation Aid. The district
must report all bus runs with the number of students outside 1.5 miles (allowable students) and
students within 1.5 miles (non-allowable students) every three years. If the district has
computerized routing, work with the transportation department to assure that the data is correct so
that maximum aid can be generated.
3. Work with the Committee on Special Education (CSE) and the transportation department to
coordinate transportation for students with disabilities. There is no mileage limitation for pupils
with disabilities transported pursuant to a determination by your district's committee on special
education that such transportation is required as a related service.
4. When considering changing the transportation policy of the district NYSED advises that school
districts shall continue to transport students to and from the regular school program in accordance
with the mileage limitations previously adopted by the qualified voters of the school district. Such
mileage limits shall change only when amended by a special proposition passed by a majority of
the qualified voters of the school district., In the event a school district does not have
documentation of voter approval of mileage limitations that go beyond those in statute, NYSED
recommends that a current proposition be put to the voters. The district’s policy manual should
reflect voter authorization.
12
New York State Association of School Business Officials
Resourcess

NYSED,
N
Pupill Transportatiion
o Phone: 518-474-654
41
o http://w
www.p12.nyssed.gov/schoo
olbus/

NYSED,
N
Statee Aid
o Phone: 518-474-2977
o https://stateaid.nyseed.gov/
Understand Mileage
M
Requuirements for Pupil Transpportation
13
MANAGE BUS REPLACEMENT AND MAINTENANCE RECORDS
FOR EACH VEHICLE
Gregg Diefenbach, gregg.diefenbach@nysed.gov
(Last Updated: 5/6/15, Last Reviewed: 5/6/15)
The Issue
Bus maintenance and bus replacement are important for the safety for the students that ride the buses and
the taxpayers that authorize the purchases.
Legal References

Education Law (sections 101, 207, 305[14] [d],1604[23], 1709, 3602[7][a]-[b], [d], 3624, 3625,
3635[4], 3637)

Vehicle and Traffic Law (sections 509-g, 1229-d; L. 1990, ch. 661; L. 1993, ch. 700, § 2; L.
1995, ch. 439; L. 1996, ch. 698; L. 1997, ch. 436, § 1, part A, § 58; L. 2002, chs. 472, 529, 600;
L. 2003, ch. 159; L. 2003, ch. 270; L. 2007, ch. 670)

8NYCRR 156.4
Best Practices
1.
In considering a bus replacement schedule it would be beneficial for the district to use a cost
evaluation methodology to weigh and evaluate the fleet’s condition. NYSED states the
average life of a bus is 10 to 12 years or 150,000 to 175,000 miles.
2.
Maintenance records should be kept for individual buses and reviewed by the transportation
department and business office to determine when a bus will need to be replaced.
3.
State aid for buses is paid over five years, the district may consider financing buses to match
state aid payments. A replacement schedule should be developed that keeps the annual
budgeted cost stable.
4.
The only buses that should be kept for a longer period of time would be spares. But it needs
to be noted that spares are costly to keep as they still require DOT inspection and proper
maintenance.
5.
Use of specialized vehicles like wheelchair lifts should be evaluated. The district should
consider the length of time the vehicle will be needed. Would it be cheaper to lease a
specialized vehicle than to purchase it?
6.
Keep a spreadsheet with the following information for each vehicle:
a. Month/Year of purchase, number of passengers, purchase price, annual mileage, date sold
or traded.
7.
14
Submit a SA-16 to the NYSED’s state aid unit as soon as a bus is delivered and starts service.
The SA-16 is the trigger for state aid. Both the transportation department and business office
need to work together to assure all the correct paperwork is submitted. A copy of the SA-16
should be retained in the business office.
New York State Association of School Business Officials
Resourcess

NYS
N
Department of Transp
portation

NYSED,
N
Pupill Transportatiion


o
Phone: 518-474-654
41
o
www.p12.nyssed.gov/schoo
olbus/
http://w
NYSED,
N
Statee Aid
o
Phone: 518-474-2977
o
https://stateaid.nyseed.gov/
A copy of the SA-16 can bee found at http
ps://stateaid.nnysed.gov/tranns/sa16_fi.pddf
Manage Bu
us Replacemeent and Mainttenance Recoords for Each Vehicle
15
MANAGE GRANTS FOR CASH FLOW AND INTENT
Patricia Service, pservice@nysasbo.org
(Last Updated: 5/6/15, Last Reviewed: 5/6/15)
The Issue
Grants can be awarded from a variety of state, federal or private agencies. Each grant has its own
requirements. The business office should be aware of all grant funds awarded to the district, minimally
the business office should assist in the development of the budget and submit the claims for
reimbursement. At best the business office may be involved in the administration of the grant and should
be aware of all the requirement of each grant.
Legal Reference
Varies by grant
Best Practices
1.
Most grants are accounted for in the Special Aid Fund, the district needs to establish the
budget for each fiscal year in its accounting system.
2.
Review the rules for each grant. Some grants will allow for cash advances, others will not. In
order to assist in managing the district’s cash flow submit a reimbursement claim. For federal
grants such as Title 1 and IDEA an FS-25 is used to claim spent funds.
3.
Employees paid with federal money must complete payroll certifications, which the business
office should keep on file.
4.
Grants may cross fiscal years. For example, Title 1 grants run September 1 to August 31.
Districts should establish the budgets in the accounting system and should be reviewed at the
end of the fiscal year, to determine what the level of funds remain be expended in the
following fiscal year.
5.
Traditionally only 90 percent of funds are released until the final cost report is submitted and
the final cost report must be filed within a limited number of days after the closing of the
grant. Timely submission of the final cost report will assist with cash flow and avoid
unnecessary additional paperwork.
6.
Some grants allow for carryover of funds from one fiscal year to another fiscal year. Each
grant has different rules for carry over. For example, only 15 percent of Title 1 funds can be
carried over, while the whole allocation of IDEA grant can be carried over.
7.
Office of Management and Budget Circular A-133 states that entities that expend $500,000 or
more in a year in Federal funds are required to have an A-133 audit. An A-133 audit
examines compliance with the regulations governing the use of the funds submitted (FS10-F)
8.
The business office annually must register on-line with the federal System for Award
Management (SAM), which is a Web-enabled government-wide application that collects,
validates, stores and disseminates business information about the federal government's
trading partners in support of the contract award, grants and the electronic payment processes.
Keep a file of the password and information submitted, this will be helpful during the renewal
process.
16
New York State Association of School Business Officials
Resourcess


NYSED
N
Grantts Finance Un
nit
o
Phone: 518-474-4815
o
www.oms.nysed.gov/cafe//
http://w
Sample letter for
f payroll cerrtifications
o

www.p
p12.nysed.gov/accountabillity/consolidaatedappupdatee/documents//FulltimeEPC
CSam
ple.doc
Budget
B
forms and
a claims fo
or reimbursem
ment
o
http://w
www.oms.nysed.gov/cafe//forms/
Managee Grants for C
Cash Flow annd Intent
17
MAXIMIZE STATE AID FOR SPECIAL EDUCATION
PLACEMENTS
Patricia Service pservice@nysasbo.org
(Last Updated: 5/6/15, Last Reviewed: 5/6/15)
The Issue
State aid for students with disabilities is paid to school district after districts complete the necessary
paperwork. Students in public placements either at BOCES, your school district or another public school,
receive Foundation Aid and Excess Cost Aid. Students with disabilities must have an Individual
Education Plan (IEP) provided by the Committee on Special Education (CSE). All public placements
students generate Foundation Aid, students that have an IEP with a minimum minutes of service per week
drive additional Foundation aid. In addition students that are in a public placement whose tuition cost
more than three times the average cost of educating a student in the district can generate high cost public
excess cost aid. Students that are placed by the CSE in a private institution drive private excess cost aid.
Legal References

Section 3602 of NY State Education Law, the CSE responsible district may file a Request for
Reimbursement Approval for school-age special education students who attend district or
BOCES programs and who have an annualized special education cost that meets or exceeds their
district threshold dollar amount

Section 4405 of NY State Education Law, the CSE responsible district may file a Request for
Reimbursement Approval for school-age special education students placed in day or residential
programs at SED-approved private schools. Private excess cost aid is generated to the CSE
district for the costs of education only
Best Practices
1.
The business office must work with the Committee on Special Education Office in order to
maximize state support. The two offices should develop a plan on which office will submit
the necessary paperwork.
2.
Annually make sure the appropriate staff has access to the online system.
3.
The Business Office and CSE staff needs to review who has access to the state’s electronic
claim system, STAC on-line or EFRT. Information for individual students must be submitted
and verified on-line.
4.
The offices should meet at least once a month to review new student placements.
5.
Students that are placed in private institutions must have state approval of the placement. The
approval is secured by submitting on-line a D-Cert within six days of the CSE meeting
making the placement.
6.
Maintenance cost for residential placements are paid by the County. The county then bills the
district 38.424 percent of the maintenance costs. Budget the cost appropriately and accrue the
cost at the end of fiscal year if the county has not billed.
18
New York State Association of School Business Officials
Resourcess


NYSED
N
STAC
C Unit
o
Phone: 518-474-71
116
o
www.oms.nysed.gov/stac/
http://w
Request
R
for on
n-line access
o

http://w
www.oms.nysed.gov/stac/forms/stac_acccess_form.ppdf
Training
T
Materrials on STAC
C unit
o
http://w
www.oms.nysed.gov/stac/training_mateerials/
Maximiize State Aid for Special E
Education Placcements
19
CLAIMING AID FOR SPECIAL EDUCATION SERVICES DURING
THE SUMMER
Patricia Service pservice@nysasbo.org
(Last Updated: 5/6/15, Last Reviewed: 5/6/15)
The Issue
Students with a disability may require services during the summer months of July and August. State
support for summer services is claimed and calculated differently than during the school year, September
to June.
Legal Reference

Section 4408 of Education Law
Best Practices
1.
Business office and Committee on Special Education (CSE) must coordinate who will submit
the assurance of required certifications for all school age private school reimbursement (the
DCERT) online within six days of the CSE meeting. State approval of the placement
(DCERT) is required annually and covers the school year from July 1 to June 30. This means
that any student in a private placement that attends a summer program must have the DCERT
filed within six days of the start of the summer program. The DCERT will cover the whole
year including the school year if there has been no change in the placement.
2.
The business office needs to develop a budget in the Special Aid Fund for the all the student
attending special education programs. Tuition, maintenance cost and transportation cost are
recorded in the Special Aid Fund.
3.
Maintenance cost for residential private institutions is paid by the district and reimbursed 80
percent by the state.
4.
Reimbursement for one on one aides is separate, therefore the CSE and business office must
determine which students have additional services and who will submit the STAC to generate
the aid.
5.
The business office must work with the transportation department to calculate the cost of
transporting special education student to their programs. Cost for transportation is reimbursed
through the STAC (EFRT) on-line system at 80 percent.
6.
The district may receive partial current year aid for summer placement, However, all state aid
will not be received in the current fiscal year. Therefore, the district must calculate and create
a state aid receivable in the Special Aid Fund.
7.
Education and transportation cost must be verified separately on-line before the state
generates payments. The district needs to determine who is responsible for verifying
placements and the transportation cost, it maybe two different people.
20
New York State Association of School Business Officials
Resourcess

NYSED
N
STAC
C unit
o

Request
R
for on
n-line access
o

http://w
www.oms.nysed.gov/stac/
http://w
www.oms.nysed.gov/stac/forms/stac_acccess_form.ppdf
Training
T
Materrials on STAC
C unit
o
http://w
www.oms.nysed.gov/stac/training_mateerials/
Claim
ming Aid for Special
S
Educaation Servicess During the S
Summer
21
TIMELY SUBMISSION OF FINAL COST REPORT FOR CAPITAL
PROJECTS
Patricia Service, pservice@nysasbo.org
(Last Updated: 5/6/15, Last Reviewed: 5/6/15)
The Issue
Building aid for capital construction projects with NYSED approval after July 1, 2011 are aided by the
state after the Final Cost Report is submitted to NYSED. Accurate accounting will lead to a timely
submission of the Final Cost Report. The process starts at the beginning of the construction discussion.
Legal Reference

Section 4 of Chapter 97 of the Laws of 2011 altered the Building Aid start date by amending
NYSEL 3602 6.e.(3)(b). The earliest Building Aid can begin for projects approved by Facilities
Planning on or after July 1, 2011 is 18 months after the Commissioner’s Approval Date (CAD) or
the date on which both the final Certificate of Substantial Completion (CSC) and a completed
Final Cost Report (FCR) are on file at the State Education Department, whichever is later.
Best Practices
1.
Get involved or track the scope of the project from the beginning; As soon as the Board of
Education starts discussing the possibilities of a project. The scope of the project will change
throughout the discussion. The Board of Education and administration may want a $40
million project but have determined that the public may only support $11 million. Be
proactive and understand what is included in a $11 Million project is very different than a
$40 million project. Once the project scope has been defined and a budget has been set obtain
the basic information from the architect.
a. How many separate projects will be submitted to NYSED. The voters may authorize $11
million of construction; however there maybe work in three different buildings. Each
building will have its own building project number.
b. Anticipated budget for each project. The architect should be able to provide a preliminary
budget for each project, the more specific the information you get the better you will be
able to understand the project and financial needs.
c. If there are multiple projects, get a schedule of value for each project. For example, the
$11 million will be used for 3 projects, one in the high school, elementary and middle
school. It is anticipated that $6 million will be spent in the high school, $3 million in the
middle school and $2 million in the elementary. Costs that are shared by all three
projects, such as architect and legal fees should be split between the projects: 54 percent
to the high school, 27 percent to the middle school and 19 percent to the elementary.
2.
22
Set up your district’s accounting system from the start to mirror the reporting on NYSED’s
Final Cost Report. A FCR will be submitted for each project. Therefore, separate account
codes for each project should be established. Use the established project number to separate
the codes. Each accounting system is different but most allow for identifiers. Here is an
example of project expenditure codes and revenue codes.
New York State Association of School Business Officials
Expenditures
Fund
H
H
H
H
H
H
H
H
H
H
H
H
Proj #
413
413
413
413
413
413
413
413
413
413
413
413
Function
2110
1620
1620
1620
1620
2110
2110
2110
2110
2110
2110
2110
Object
0.201
0.293
0.294
0.295
0.296
0.246
0.24
0.243
0.297
0.2
0.245
0.244
Description
Clerk of Works / CM
General Construction
HVAC
Plumbing
Electrical
Incidental - Survey and Engineering
Incidental - Administrative/ Contractual
Incidental - Insurance
Incidental - Site Improvement
Incidental - Furniture & Equipment
Incidental - Architect Fees
Incidental - Legal Fees
Proj #
413
413
413
413
413
413
413
413
413
413
413
413
413
413
413
413
Function
2680
2705
2770
3297
3297
4297
5031
5700
5710
5720
5730
5740
5785
5789
2401
5031
Description
Insurance Recoveries
Gift and Donations
Other Miscellaneous
State Sources, Excel Aid
State Sources, OTHER
Federal Sources
Interfund Transfer from General Fund
Term Bonds
Serial Bonds
Statutory Installment Bond
Bond Anticipation Notes
Capital Notes
Installment Purchase Debt
Other Debit
Capital Reserve - Interest and Earning
Capital Reserve Interfund Transfer
Revenue
Fund
H
H
H
H
H
H
H
H
H
H
H
H
H
H
HR
HR
H= Capital fund
3.
After submitting the Final Cost Report any excess funds must be moved to the Debt Service
Fund in order to pay the debt.
Timely Submission of Final Cost Report for Capital Projects
23
Resourcess

NYSED
N
Faciliities Planning
g Unit
o

Facilities Plan
nning websitee has informaation on projeect status inccluding listingg of open buuilding
N
approval of Final P
Plans and Speecs, approvedd change orderrs and
prroject numberrs, dates of NYSED
geeneral inform
mation.
o

Phone: 518-474-3906
http://w
www.p12.nyssed.gov/facplan/
Final Cost Rep
ports
o
24
http://w
www.p12.nyssed.gov/facplan/document s/FinalCostR
Report.xls
New York State
S
Associattion of Schoo
ol Business O fficials
Timely Submiission of Finaal Cost Reporrt for Capital Projects
25
ENGAGE IN LONG-RANGE FINANCIAL PLANNING
Kurt Jaeger, k_jaeger@saratogaschools.org
Kathryn M. Barrett, kathryn.barrett@freedmaxick.com
Deborah H. Cunningham, dcunningham@nysasbo.org
(Last Updated: 5/6/15, Last Reviewed: 5/6/15)
The Issue
In the turbulent economic and policy environment of the past six years, involving freezing and deficit
reduction of state education aid, a quest to slow the growth of local education taxes through a statewide
Tax Cap and policy changes affecting teacher evaluation, assessment, data privacy and learning standards,
school districts need to use every resource and tool to ensure effective and efficient management of
school resources. Many districts are establishing long-range financial plans. These plans are critical to
maintaining sound fiscal health while maintaining educational programs for students. A long-range
financial plan can link multi-year budgets to show what decisions are necessary to maintain programs and
fiscal stability over the long term. They can assist administrators and school boards in understanding the
long-term impact of decisions made today. They take into consideration community priorities, anticipated
student enrollment, curriculum mandates, technology needs of students, facility needs, contractual
provisions, rapidly increasing cost items, anticipated state resources, property tax caps and use of reserve
funds.
Legal Reference

None.
Best Practices
1.
Include all of the key stakeholders in the development of the long-range financial plan,
making the general public, including parents and students aware of the work: board of
education members, superintendent, curriculum director, business official, and facilities
director.
2.
Basic components. Long-range financial plans should include five basic components:
expenditures, revenues, fund balance, the five-year capital plan and a plan to accomplish the
district’s instructional goals.
3.
Uncertainties. Do not avoid long-range financial planning because of uncertainties about
state aid, the allowable growth factor for the Tax Cap, contractual increases in times of
contract negotiations and increases in health insurance and pension costs. Instead carefully
document and articulate the assumptions that are in the financial forecast.
4.
Estimating Expenditures. Most district expenditures such as salaries, retirement system
contributions, and debt service requirements are fixed costs that are fairly simple to estimate
over the next five years based on current contracts, projections of full-time equivalent staff,
information provided by retirement systems and debt service schedules maintained by
districts. Estimates for utilities and transportation may be based on historical increases over
the past three to five years. School officials can document facility maintenance costs with the
assistance of qualified professionals (engineers and architects) by updating and utilizing the
building condition survey. This document is required to be updated every five years but doing
annual updates will give the district a tool that provides current information and costs.
26
New York State Association of School Business Officials
5.
School officials can document facility maintenance costs with the assistance of qualified
engineers.
6.
Consider the potential for savings by using the following approaches:

Review collective bargaining agreements and seniority lists and understand the terms
and conditions for layoffs and recall provisions.

Work with union leadership. Reductions by attrition are more cost effective than
layoffs. Layoffs affect the least senior people, result in less savings due to the lower
salaries of less senior staff, and have significant additional unemployment cost
associated with them.

Concerning possible labor concessions, share with your bargaining unit leadership
what can be accomplished with concessions compared to layoffs.
7.
Estimating revenues. Revenues and more specifically state aid are likely to be the most
challenging component of a long-range plan to develop. Generally, revenues other than
property taxes and state aid are a very small component of total revenue and tend to follow
historical trends. With three years of experience with the Tax Cap, Business Officials will be
able to estimate future property tax revenue with some degree of reasonableness. State aid is
less predictable. How long will it take the State to phase out the Gap Elimination
Adjustment? The optimistic estimate is two years. Most districts are taking a conservative
approach assuming flat state aid over the near term or slight increases factoring in some
recovery of aid from phase out of the Gap Elimination Adjustment.
8.
Use of Reserves. The new reality of district budgeting is the inevitable use of fund balance
and reserves. Boards and community members must remember that use of fund balance and
reserves to balance the budget is a reliance on “one shot” revenues. Once used, they are not
available for future years and the budget may be unsustainable. Some important points to
consider include:

Use of fund balance affects cash flow for districts especially during the summer
months when they are receiving little or no other revenue.

Given flat or decreasing state aid, use of designated fund balance to subsidize the tax
levy must be monitored very carefully. Reduced state aid and a reduced ability to
designate fund balance quickly becomes a “double hit”.

Be mindful of the multi-year impact of using reserves. Acceptable minimum reserve
balances, and related reductions, should be established early in the process.

The plan will highlight the pitfalls of indiscriminately using one-time revenues
without any follow up strategies. The long-range financial plan will help school
officials take timely actions that avoid long-term problems.

Consider the timing of the use of reserves. For example, consider use of the
unemployment reserve when your unemployment costs are expected to be higher.
Otherwise, the district may be faced with holding reserve funds that they cannot use
when needed.

Districts may find it wise to budget more conservatively when using reserves. This
may provide some opportunity to replace these reserves, at least in part.
Engage in Long-Range Financial Planning
27
9.
Five-year capital plan. Any long-range financial plan should include districts’ five-year
capital plans, which have been required since 2001 and updated annually pursuant to
Commissioner’s Regulations Part 155. The capital plan can involve significant expenditures
and may be critical to achieving the district’s education mission such as providing facilities
appropriate for students with disabilities, prekindergarten students or science, technology and
engineering programs that are part of a district’s efforts to prepare students to be college and
career ready. The goal of the five-year plan is to preserve school district capital assets and
meet expectations with regard to the use of facilities to meet the district’s education and
community goals.
10.
Supporting long-range instructional goals. The plan should describe revenue expectations
and expenditure projections that support the implementation of a plan to achieve the school
district’s instructional goals. The district may decide to focus on a variety of strategies
including for example: improving access and opportunity to advanced coursework for
historically under-performing students, strengthening English language arts and mathematics
instruction by implementing programs aimed at achieving Common Core Learning Standards,
developing educational programs for prekindergarten students that are aligned with
instructional initiatives targeted for early grades, developing science, technology and
engineering programs, or strengthening linkages between educational programs and career
opportunities for students. Whatever the priority or priorities, the board, district staff and
general public will benefit from understanding the district’s long-term goals and how its
finances are aligned to accomplish them.
11.
For a long-range financial plan to be a useful tool for administrators and boards, it must be
based on accurate data and rational assumptions to provide users with a realistic picture of the
financial challenges that lie ahead. The plan should allow users to change and analyze
varying scenarios or assumptions such as, allowing users to compare the financial impact of a
negotiated 3 versus 2.5 percent increase in teacher contracts, consolidation of bus runs, or use
of a retirement incentive.
12.
The plan should provide districts with a road map of the steps to be taken financially in order
to meet goals and objectives of providing students with a high quality education that will
enable students to become college and career ready. Consider sharing with the community the
short and long-term financial challenges of the district and the plans the district has
developed to overcome them. Continued open and honest communication with will help the
district manage its financial operations and achieve educational objectives.
13.
Experience has shown that by the last years of a five-year forecast many districts may see
shockingly large numbers. This can send administrations and boards of education into a
tailspin (resulting in dysfunction) that the "sky is falling in." In practice, corrective action
(cost containment and restructuring) is done each year so that this doesn't happen five years
out. The five-year forecast will be more credible and understandable if this type of thinking is
built into the process. The practical problem is owning, adjusting and documenting these
"corrective action" assumptions.
28
New York State Association of School Business Officials
Resources

New York State Rural Schools Center’s budget sandbox
o

New York State Comptroller’s long range planning tool
o

http://www.nyruralschools.org/w/data-tools/budget-playground/#.VLQdHGTF84I
http://osc.state.ny.us/localgov/myfp/index.htm
Forecast5 Data Analytics system
o
http://www.forecast5analytics.com/news/nysasbo-partnership
Engage in Long-Range Financial Planning
29
30
New York State Associattion of Schoo
ol Business Officials
CON
NCLUSIO
ON
Best Pracctices for Fisccal Managem
ment is a docu
ument that wiill always adaapting to new
w laws, regulaations
and techn
nology. If you
u have a recom
mmendation for a best praactice that cann be includedd in this docuument,
you may suggest a top
pic or write a section. Keep
p it simple, byy following tthe format off - The Issue, Legal
Referencees, Best Practtices and Ressources. Conttact New Yorrk State Assoociation of Buusiness Officiials at
518-434-2
2281 or emaill the documen
nt to pservice@nysasbo.orrg.
Sharing in
nformation am
mong our pro
ofessional collleagues will make us all successful. W
We appreciatee your
assistancee and input.
CONT
TRIBUTO
ORS
This best practices han
ndbook is inteended to be a living docum
ment with conntributions byy NYSASBO staff,
BO members and other gu
uest writers. The accuraccy of the conntent, includinng any errorss, will
NYSASB
remain thee responsibiliity of the auth
hors and not th
he NYSASBO
O.
Deborah Cunningham,
C
Director of Education
E
and
d Research, N
NYSASBO dccunningham@
@nysasbo.orgg
Gregg Dieefenbach, Associate in Sch
hool Financiaal Aid, Officee of Educationnal Managem
ment Services,, New
York Statte Education Department
D
gregg.diefenba
g
ach@nysed.ggov
Kurt Jaeeger, Assistaant Superinttendent for Business, Saratoga Spprings City School D
District
k_jaeger@
@saratogaschools.org
Kathryn M.
M Barrett
Director,
D
Freeed Maxick CP
PAs, P.C. katthryn.barrett@
@freedmaxick.com
Patricia Service, Educaation and Ressearch Adviso
or, NYSASBO
O pservice@nnysasbo.org
Connclusion
31