NJASBO School Finance/Accounting John Serapiglia jserapiglia@mrhs.net NJSBO network password: secretnetwork My cell: 201 400 3542

2018 Class meeting dates September 8, 22, 29 October 6, 13, 20, 27 November 3, 10, 17 10 Sessions/55 hrs Start time 9:00 am

What is on today’s agenda? Board Secretary / BA overview Board meetings Report of the Treasurer Report of the Board Secretary Quick overview of Chart of accounts

Board Secretary Two job functions Prepare Agenda for Board meetings Take minutes of Board meetings In this job capacity you work for Board Information is key

Board meetings What are they? How often held? Who attends? Different types Work Session Regular Reorg (handout) Committee

Board meetings cont’d Structure What is your responsibility Agenda / minutes Platform for discussion Review prior agendas / minutes to see how to set up Consent agendas Know laws for votes (handouts) Ethics

Business Administrator functions Budget / Finance Purchasing Payroll Custodial / Maintenance Transportation Food Service Insurance Legal Core Curriculum Negotiations Grants State Aid NCLB / IDEA

Uniform Chart of Accounts Accounts and account numbers used by all NJ School Districts Conforms with Generally Accepted Accounting Principles (GAAP) Consistent with National Center for Education Statistics (NCES) chart of accounts

Where to find it???

Basic Accounting Terms ASSET – accounts that exhibit what a school district owns, is owed, and has retained for future economic benefit LIABILITY – accounts that exhibit what a school district owes FUND BALANCE – accounts that exhibit how much a school district would have if the assets were liquidated and used to pay the liabilities

Basic Accounting Terms REVENUE – Money received directly or indirectly to fund government operations APPROPRIATION – Money authorized for specific expenditure by an elected body or the public

Basic School Accounting Terms Purchase Order – Indicates amount, vendor, quantity account to be charged Encumbrance – Commitment made by district to purchase / spend money in a given accounting line

Fund Accounting Governmental fund accounting measures fund financial position and changes in fund financial positions – sources, uses, and balances of net fund financial resources – rather than net income A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts

Funds Fund 10: General Fund (3 main parts) Fund 11: General Current Expense Fund 12: Capital Outlay Fund 13: Special Programs Fund 20: Special Revenue (Grants) Fund 30: Capital Projects Fund 40: Debt Service Fund Fund 50: Permanent Fund Fund 60: Enterprise Fund 80: Trust funds Fund 90: Agency Funds

Basic Fund Accounting Equation GENERAL FUND Current Assets – Current Liabilities = Fund Balance Does not provide for fixed assets or long-term debt

Budgetary Basis of Accounting School districts maintain their accounts on the budgetary basis of accounting during the year, for budgetary control and for interim and annual budgetary reporting purposes At year end, the accounts are adjusted to the GAAP basis, or accrual basis of accounting (expenses recorded when they occur; not when cash exchanged) We set up budget at beginning of year and work off of that