Presenters: Susan Shepard, Ast Supt/Business Services, CCSD 62

1. Performance Monitoring/Monthly Dashboard ReportingIASBO Annual Conference 2008Budgeting 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. 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. 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. 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. 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. Internal Performance Monitoring • Treasurer’s Reports. • Balance Sheets. • Revenue/Expense Statements. • Statement of Changes in Financial Position. • Cash Flow Projections. • Expense Trending.

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.htm

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. 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. 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.htm

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

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. Incorporation of Data • Facility/Operations • Cost Per Square Foot • Facility 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. Practical Examples to Implement and Start the Process • January • Mid-Year Monitoring of Revenues/Expenditures • February • Staff Development. • March • Staff Attendance

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

18. Practical Examples to Implement and Start the Process • July • Utilities • August • Enrollment • September • Year-End Monitoring Revenues/Expenditures

19. Practical Examples to Implement and Start the Process • October • Financial Profile Rating • Web Brochure • November • ILEARN/Financial Comparison23 • http://webprod1.isbe.net/ilearn/ASP/index.asp • December • Tax Levy

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

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.