Thursday, April 12, 2007 3 PM - 4:15 PM

1. Thursday, April 12, 20073 PM - 4:15 PM Business Manager's Role in Relation to the Board: Best Practices for Sound Management Michael Naccarato – Treasurer: Mother Seton Academy – Baltimore, MD Christopher Sapienza - CFO: Mount Saint Joseph High School - Baltimore, MD Mother Seton Academy

2. WHERE ARE WE GOING? • CONTRAST SIZE AND COMPLEXITY OF MOTHER SETON ACADEMY AND MOUNT ST. JOSEPH HIGH SCHOOL • GOVERNANCE AND ACCOUNTABILITY ROLES RELATING TO BUSINESS FUNCTIONS(S) OF SCHOOL • WHO’S IN THE BUSINESS OFFICE? • WHAT KIND OF BOARD DO YOU HAVE? • SAMPLE ROLES: CFO, FINANCE COMMITTEE & BOARD • WORKING TOGETHER • LEVEL OF DETAIL NEEDED BY ROLE • TYPES OF REPORTS BY ROLE • BUDGET PROCESS BY ROLE • TIMELINES & DELIVERABLES

3. ALL-SCHOLARSHIP, INDEPENDENT CATHOLIC MIDDLE SCHOOL DEDICATED TO THE EDUCATION OF BOYS AND GIRLS FROM LOW-INCOME FAMILIES IN BALTIMORE • FOUNDED IN 1993 • 1ST CO-ED NATIVITY SCHOOL IN THE COUNTRY • OVER 85% OF GRADUATES GO ON TO CATHOLIC, PRIVATE AND MAGNET COLLEGE-PREP HIGH SCHOOLS

4. 6 CO-SPONSORING CONGREGATIONS • SCHOOL SISTERS OF NOTRE DAME • XAVERIAN BROTHERS • SISTERS, SERVANTS OF THE IMMACULATE HEART OF MARY • SISTERS OF ST. FRANCIS OF PHILADELPHIA • DAUGHTERS OF CHARITY • MARIANISTS • CO-ED; GRADES 6 – 8 • 70 CHILDREN • ANNUAL BUDGET UNDER $1 MILLION • 16 EMPLOYEES; 3 VOLUNTEERS

5. STUDENT SCHEDULE • 7:45-8:00am BREAKFAST8:00-3:00pm ACADEMIC SCHOOL DAY3:00-3:20pm SCHOOL CLEANING3:20-3:45pm SNACK & RECREATION3:45-4:45pm SUPERVISED HOMEWORK

7. MOUNT SAINT JOSEPH HIGH SCHOOL

8. A XAVERIAN BROTHERS SPONSORED SCHOOL • CATHOLIC COLLEGE PREPARATORY SCHOOL FOR YOUNG MEN • FOUNDED IN 1876 • GRADUATED OVER 15,000 STUDENTS SINCE OPENING; OVER 12,000 LIVING ALUMNI • BR. MATTHIAS, C.F.X. MENTOR TO BABE RUTH • 1ST HIGH SCHOOL IN BALTIMORE/WASHINGTON ARCHDIOCESE TO ADMIT A DOWN SYNDROME STUDENT IN 2005 AS PART OF THE ST. GILES PROGRAM • 1ST SCHOOL IN STATE OF MARYLAND TO HAVE A FACULTY MEMBER WIN THE VFW STATE TEACHER OF THE YEAR FOUR YEARS IN A ROW

9. XAVERIAN BROTHERS SPONSORED SCHOOL • GRADES 9 – 12 • 1,100 STUDENTS • ANNUAL BUDGET JUST UNDER $10 MILLION • 140 EMPLOYEES

11. GOVERNANCE & ACCOUNTABILITY: DISCERNING ROLES • CREATING & DEVELOPING PROGRAMS & POLICIES • NUMBER & TYPES OF FUNCTIONAL AREAS WITHIN PURVIEW OF BUSINESS OFFICE • IMPLEMENTATION • MONITORING • OVERSIGHT: REPORTING TO & EDUCATING BOARD • ACCOUNTABILITY: EVALUATION; FACILITATION OF BOARD DECISIONS

12. GOVERNANCE & ACCOUNTABILITY: SPECIFIC NEED/ISSUE • WHO TAKES THE LEAD? • WHO SERVES PRIMARILY IN SUPPORT ROLE? • WHAT INFORMATION IS SHARED WITH WHOM, WHEN AND HOW? • HOW ARE VARIOUS ACTORS ACCOUNTABLE TO ONE ANOTHER AS WELL AS OTHER STAKEHOLDERS?

13. WHO’S IN YOUR BUSINESS OFFICE? • CFO • VISIONARY • TACTICAL • FUNTIONAL • BUSINESS MANAGER • LIMITED TACTICAL • FUNCTIONAL • BOOKKEEPER • LIMITED FUNCTIONAL

14. WHAT KIND OF BOARD DO YOU HAVE? • GOVERNING/POLICY BOARD • ADMINISTRATIVE BOARD • WORKING/LINE BOARD • ADVISORY BOARD

15. Practical application • SAMPLE ROLES • WORKING TOGETHER

16. CFO/BUSINESS MANAGERJOB DESCRIPTION MANAGE BUSINESS OFFICE AUDIT BANKING BOARD/FINANCE COMMITTEE BOOKSTORE CAFETERIA ENDOWMENT/INVESTMENT COMMITTEE FINANCIAL AID COMMITTEE INSURANCE PLANT MANAGEMENT SALARY SCALE/EMPLOYMENT AGREEMENTS TRANSPORTATION

17. FINANCE COMMITTEEROLE • ASSISTS THE PRINCIPAL AND/OR PASTOR IN THE DEVELOPMENT OF THE SCHOOL BUDGET • REVIEWS IMPLEMENTATION OF THE BUDGET AND PROVIDES PERIODIC FINANCIAL REPORTS TO THE BOARD • MONITOR SCHOOL INVESTMENTS • ADVISE IN SETTING FINANCIAL POLICY • AVAILABLE TO ASSIST IN OTHER NON-RECURRING TRANSACTIONS (I.E. FINANCING CONSTRUCTION OF A NEW BUILDING)

18. SCHOOL BOARD ROLE • TO ASSIST THE PASTOR OR PRINCIPAL WITH COUNSEL AND ADVICE, CONTRIBUTING THE BENEFIT OF ITS JUDGMENT AND EXPERIENCE • TO REFRAIN FROM HANDLING DIRECTLY ANY ADMINISTRATIVE DETAILS • TO SUPPORT THE PRINCIPAL IN ALL DECISIONS AND ACTIONS AS A RESULT OF BOARD POLICIES AND ACCEPT RESPONSIBILITY FOR ADMINISTRATIVE ACTS RESULTING FROM THE IMPLEMENTATION OF POLICIES • APPRAISE ADMINISTRATION WITH RESPECT TO THE IMPLEMENTATION OF BOARD POLICIES • TO SELF-EVALUATE THE BOARD’S EFFECTIVENESS

19. OTHER COMMITTEES • EXECUTIVE • REPRESENT FULL BOARD • ADDRESS URGENT SITUATIONS BETWEEN BOARD MEETINGS • LONG-RANGE PLANNING • ASSIST IN THE DEVELOPMENT OF A LONG RANGE STRATEGIC PLAN CONTAINING ACHIEVABLE GOALS AND OBJECTIVES • WITH THE PRINCIPAL, ESTABLISH A PROCESS FOR COORDINATION OF ALL ACTIVITIES INVOLVED WITH IMPLEMENTING, EVALUATING AND REVISING THE LONG RANGE PLAN AND ITS ACTION STEPS • FACILITIES • RECOMMEND NEEDED CAPITAL REPAIRS • RECOMMEND PROCEDURES AND POLICIES FOR EFFICIENT OPERATION AND PHYSICAL PLANT AND SURROUNDING AREAS • DEVELOPMENT/MARKETING • SUGGESTS VEHICLES FOR ATTRACTING NEW STUDENTS, TEACHERS AND BUSINESS PARTNERSHIPS • SUPPORTS AND ENCOURAGES DEVELOPMENT EFFORT • EDUCATIONAL • WORKS WITH ADMINISTRATION TO ENSURE THE INTENDED MISSION OF THE SCHOOL IS CARRIED OUT • ADVISES ADMINISTRATION ON CHANGES TO CURRICULUM, NEW VENTURES, MIDDLE STATES ACCREDITATION, ETC.

20. CFO/BUSINESS MANAGER JOB DESCRIPTION MANAGE BUSINESS OFFICE AUDIT BANKING BOARD/FINANCE COMMITTEE BOOKSTORE CAFETERIA ENDOWMENT/INVESTMENT COMMITTEE FINANCIAL AID COMMITTEE INSURANCE PLANT MANAGEMENT SALARY SCALE/EMPLOYMENT AGREEMENTS TRANSPORTATION FINANCE COMMITTEE • ASSISTS THE PRINCIPAL AND/OR PASTOR IN THE DEVELOPMENT OF THE SCHOOL BUDGET • REVIEWS IMPLEMENTATION OF THE BUDGET AND PROVIDES PERIODIC FINANCIAL REPORTS TO THE BOARD • MONITOR SCHOOL INVESTMENTS • ADVISE IN SETTING FINANCIAL POLICY SCHOOL BOARD • TO ASSIST THE PASTOR OR PRINCIPAL WITH COUNSEL AND ADVICE, CONTRIBUTING THE BENEFIT OF ITS JUDGMENT AND EXPERIENCE • TO REFRAIN FROM HANDLING DIRECTLY ANY ADMINISTRATIVE DETAILS • TO SUPPORT THE PRINCIPAL IN ALL DECISIONS AND ACTIONS AS A RESULT OF BOARD POLICIES AND ACCEPT RESPONSIBILITY FOR ADMINISTRATIVE ACTS RESULTING FROM THE IMPLEMENTATION OF POLICIES • APPRAISE ADMINISTRATION WITH RESPECT TO THE IMPLEMENTATION OF BOARD POLICIES • TO SELF-EVALUATE THE BOARD’S EFFECTIVENESS

21. HOW DO THE CFO AND THE FINANCE COMMITTEE/BOARD WORK TOGETHER? CFO BOARD Administration

22. THE REVERSE PYRAMID BUSINESS MANAGER FINANCE COMMITTEE BOARD

23. HOW MUCH DETAIL DOES EACH GROUP REQUIRE? BUSINESS MANAGER LEVEL OF DETAIL FINANCE BOARD LET’S LOOK AT THE PYRAMID….

24. BUSINESS MANAGER FINANCE COMMITTEE BOARD

25. WHAT TYPES OF INFORMATION ARE USEFUL TO THE CFO/FINANCE COMMITTEE/BOARD? REPORTS STANDARD I/S, B/S, CASH FLOW SPECIAL REPORTS BENCHMARKING RATIOS TRENDS (INTERNAL/EXTERNAL) BUSINESS MANAGER REPORTING FINANCE BOARD

26. BUSINESS MANAGER THE BUDGET FINANCE BOARD • SETTING THE TUITION & FEES • SALARY AND BENEFITS ADMINISTRATION • ALTERNATE SOURCES OF REVENUE • EXPENSE CONTAINMENT • MARKET CONDITIONS

27. BUSINESS MANAGER BUDGET PROCESS • CHART OF ACCOUNTS • INVOICES • INTERVIEWS WITH DEPARTMENTS • HISTORY

28. “REVENUE EXCEEDS EXPENSES. THAT COVERS BEST PRACTICES AND SOUND MANAGEMENT.” -MSJ FC CHAIR BUDGET PROCESS • DETAILED FINANCIAL STATEMENTS • SUMMARIZATION OF REPORTS FINANCE COMMITTEE

29. BUDGET PROCESS • SUMMARY OF RESULTS • RESOLUTION TO ACCEPT COMMITTEE RECOMMENDATION OF TUITION/FEES BOARD

30. BUSINESS MANAGER SCHOOL CALENDAR FINANCE BOARD • BOARD/FINANCE COMMITTEE MEETINGS • LENGTH OF MEETINGS • HOW OFTEN TO MEET • TIMING OF DELIVERABLES • WHAT IS DONE WHEN • TUITION/FEES • TEACHER CONTRACTS • OPERATING/CAPITAL BUDGET • FINANCIAL AID