1. 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

2. 2 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.

3. 3 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.

4. 4 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”).

5. 5 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.

6. 6 Internal Performance Monitoring Treasurer’s Reports. –Balance Sheets.Balance Sheets. –Revenue/Expense Statements.Revenue/Expense Statements. –Statement of Changes in Financial Position. –Cash Flow Projections.Cash Flow Projections. –Expense Trending.Expense Trending.

7. 7 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.htmhttp://www.isbe.net/sfms/P/profile.htm

8. 8 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.

9. 9 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.

10. 10 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.htmhttp://www.isbe.net/sfms/P/profile.htm

11. 11 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)

12. 12 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

13. 13 Incorporation of Data Instructional –Illinois Report Card Data. –ISAT –PSAE –MAPS –AIMSWEB –Iowa Basics –Average Yearly Progress (AYP) –Extremely Important

14. 14 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

15. 15 Incorporation of Data Facility/Operations –Cost Per Square Foot –Facility Condition IndexFacility 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

16. 16 Practical Examples to Implement and Start the Process January –Mid-Year Monitoring of Revenues/ExpendituresMid-Year Monitoring of Revenues/Expenditures February –Staff Development.Staff Development. March –Staff AttendanceStaff Attendance

17. 17 Practical Examples to Implement and Start the Process April –Staffing May –Health Insurance June –Workers’ Compensation InsuranceWorkers’ Compensation Insurance

18. 18 Practical Examples to Implement and Start the Process July –UtilitiesUtilities August –EnrollmentEnrollment September –Year-End Monitoring Revenues/Expenditures

19. 19 Practical Examples to Implement and Start the Process October –Financial Profile RatingFinancial Profile Rating –Web BrochureWeb Brochure November –ILEARN/Financial Comparison 2 3ILEARN/Financial Comparison23 –http://webprod1.isbe.net/ilearn/ASP/index.asphttp://webprod1.isbe.net/ilearn/ASP/index.asp December –Tax LevyTax Levy

20. 20 Internet Websites –Powerful Communication Medium that is Interactive, Unstratified, and Multi-Channeled plus its easy! http://www.d62.org/schoolboard/dashboardreports.h tmlhttp://www.d62.org/schoolboard/dashboardreports.h tml http://www.lz95.org/business/dashboard_indicators. htmhttp://www.lz95.org/business/dashboard_indicators. htm

21. 21 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.