825 4th St NW Byron MN 55920   |  507.254.6215  |  tnetzke@schoolmanagementservices.org

Services

School Management Services will provide a customized business management and support services solution to meet the needs of your District. Services can be provided on a long-term or short-term basis and can be provided as a supplementary service to existing District resources. Services can also be provided on an A La Carte or 1-time basis for example: prepare state aids or taxes receivable for your audit; provide an internal benefits or MARSS audit, preparation of bank reconciliations, etc.

Accounting Services

Supervision – SMS will provide effective supervision and direction for the district business support services staff. We will be on-site a minimum of two days per week to ensure the business support services are being delivered in an accurate and timely manner.

UFARS Compliance – It is imperative that consistent and accurate coding of district revenue and expenditures occurs in order to facilitate comparability of financial results from year to year and more importantly to accurately develop budgets. In addition, accurate coding of expenditures allows for maximization of revenues, such as Special Ed State and Federal revenues as well as grants and title program revenues.

General Ledger Reconciliation – Timely reconciliation of general ledger items such as cash, deferred revenue, accounts payable, etc. are critical to accurate financial reporting. It is this area that is often responsible for misrepresenting revenues and expenditures and delaying the annual audit.

Special Education Reporting – SMS will work closely with the Director of Special Ed to ensure staffing is appropriately designated as State or Federal and that all appropriate Special Ed costs are coded as such to maximize available revenues. SMS will also assist the Director of Special Ed to ensure the district is meeting maintenance of effort requirements to ensure no federal funds are lost.

Federal & Local Grants – Accurate and timely reporting of federal and grant expenditures is important in securing all available revenues. In addition to ensuring revenues aren’t lost, it is also critical to comply with periodic reporting requirements to receive funds available in a more timely fashion, which has a positive impact on cash flow and can translate into increased interest earnings.

Accounts Payable

Annual Audit

Planning & Coordination – SMS will maintain communications with the district auditor and key district staff to facilitate the timely completion of the annual audit. Timely audit completion translates into savings in audit fees for the district.

Audit Schedules – SMS will prepare the annual audit schedules required by auditors. Such schedules include: property taxes, state aids, federal grants, budget reconciliation, general ledger account reconciliation, etc. Accurate completion of these schedules by SMS will translate into an efficient audit and savings in audit fees for the district.

Auditor Experience – SMS has worked with several of the leading auditors of Minnesota school districts and is expert in what constitutes high quality auditor services. SMS will ensure the district is receiving high quality auditing services.

Board and Planning Services

5-Year Plan – SMS will meet with the appropriate Board appointed group or committee at time intervals according to the desires of the board. The 5-Year plan discussions will consist of establishing board approved assumptions and discussing key variables such as enrollment projections and staff planning. In addition, we may discuss future space needs, technology, deferred maintenance, and textbook needs, etc. SMS will also communicate the 5-Year plan to the entire board and the public at board meetings in time intervals to be determined by the Board.

Budget Cycle – SMS will prepare a district budget and communicate it to the board according to the following timeline: Truth-in-Taxation Hearing – SMS will prepare and communicate pertinent information regarding the current proposed levy via the truth-in-taxation hearing.

Levy Certification – SMS will communicate all factors influencing the proposed maximum levy and provide them with options for adjustment to align with the long-range financial plan of the District.

Committee Representation – SMS will attend committee meetings as the Board and Management determines appropriate.

Benefit Plan Information – SMS, working with management, will assist in preparing communications to the Board regarding the results of the benefit plans, benefit plans strategies and year-to-date results. Renewal previewing will help keep the Board up to date on how the health insurance plan is matching up to the budgeted allowance for benefits, enabling proactive planning activities.

Cash Flow Management

Cash Flow Projections – SMS will provide the district with annual cash flow projections, periodically updated for unanticipated events. SMS will seek quotes on investments, according to district policy, to multiple brokers, banks, etc. to receive the most competitive rate of return available.

Schedule of Investments – SMS will provide the School Board with a schedule of investments periodically, according to the desires of the Board. The schedule of investments will include type of investment, principal amount invested, term of investment, rate of return, and anticipated interest earnings.

Treasurer’s Report – SMS will provide the School Board with a monthly Treasurer’s report which will serve as a summary of cash transactions for reporting period. The Treasurer’s report will also serve as a reconciliation of cash between the bank and general ledger.

Aid/Tax Anticipation - Depending upon the current financial state of the district, the district may have a need to borrow funds in order to ensure adequate resources are available to meet current obligations. Due to the State of Minnesota’s practice of holding back approximately 20% of a school districts current year revenue’s, a district may need to borrow, even in financially healthy times. SMS will assist in determining the amount of borrowing needed and properly invest funds prior to use in order to minimize the cost of borrowing.

Pledged Collateral Compliance – It is necessary to have securities pledged equal to 110% of the cash exceeding $100,000 on deposit at a local banking institution. SMS will ensure the District is in compliance with this Statute.

E-Rate

Financial Planning

Multi-Year Financial Planning Model – Minnesota School Districts are experiencing times of uncertain funding levels and volatile changes in student enrollments, it is critical for the district to have an interactive planning model to create a long-range plan to visualize the impact of these variables. SMS utilizes Schoolfinances.com’s powerful, long-range Financial Planning Model (FPM). The FPM addresses two key variables of financial planning, enrollment and staff planning, which drive approximately 75% of your revenues and expenditures. See the Resources area for a sample 5-year plan.

Budget Development – SMS provides the Board with a budget cycle that will consist of budget adoption (May/June), Revisions (Nov/Dec) and a Final revision (Feb/Mar). Negotiations Support and Costing – Salaries and benefits account for approximately 75% of the districts General Fund budget. A first step to creating boundaries for negotiations relates back to the creation of a realistic long-range plan. SMS will bring expertise, knowledge and third party examples of what is being done to control districts salary and benefit costs (see 3-D Benefits™).

Bond/Operating Referendum Planning – Due to the inadequate levels of funding and frequent changes in building space needs, it is important to have the ability to adequately plan for the utilization of these funding and financing tools. SMS is well versed in the tools available to fund projects and the planning and communications that are necessary to successfully achieve community support in passing referendums.

Internal Audit

Payroll & Accounts Payable:

Levy Certification

Levy Planning – SMS will help Districts exercise the little control they have over the annual levy. For the most part, the District is at the mercy of the State when it comes to shifts between State aid and local levy. However there are a few items that the district has the ability to anticipate. SMS will help identify the proper amount of operating levy referendum authority for the District and strategize the timing for beginning efforts to renew or initiate new referendum authority.

Levy Certification – SMS will perform all the necessary tasks and meet all deadlines in preparing the annual levy certification for the District. This includes communicating preliminary levy amounts to the school board ahead of the official Truth-in-Taxation hearing and final Board approval of the certified levy.

Board Communication – SMS will communicate the maximum levy amount and options for adjusting the levy to facilitate the long-range levy plan.

Truth-in-Taxation Hearing – SMS will prepare a presentation regarding the preparation of the annual levy, legislative impacts, and other factors impacting the proposed levy and communicate them to the board and public via the annual Truth-in-Taxation hearing.

Payroll

Human Recources

EMPLOYEE DISCIPLINARY MATTERS

CONSULTATION

PROFESSIONAL DEVELOPMENT & TRAINING

MATERIALS DEVELOPMENT

NEGOTIATIONS

NONORGANIZED