1301 Pennsylvania Avenue, NW, Suite 702
Washington, DC 20004
The Council of the Great City Schools
Award for Excellence in Financial Management
ü While organizations such as GFOA and ASBO provide standards for excellence in financial reporting and budget presentation, there are no national standards for recognizing excellence in financial accountability and controls that are needed to safeguard and protect the financial integrity of a school district.
ü Unlike the GFOA and ASBO awards, which focus on data content and format, the CGCS Award for Excellence in Financial Management focuses on policies, procedures and outcomes across a broad range of financial areas.
ü A rigorous “Best of Financial Management Practices Peer Review” process assesses a district’s financial management practices; and “Key Performance Indicators” are used as an evaluative research and objective analytical baseline to demonstrate the efficient and effective use of financial resources.
ü The Council recognizes the Office of Program Policy Analysis and Governmental Accountability (OPPAGA) in Florida and The Stupski Foundation for sharing criteria used for this award.
For Service or More Information Contact:
Robert Carlson
Director, Management Services
Office Ø (202) 393-2427 Cell Ø (202) 465-1897 Email Ø
1301 Pennsylvania Avenue, NW, Suite 702
Washington, DC 20004
2017 Award for Excellence in Financial Management
An Electronic Copy of the Assessment Form and Supporting Document should be emailed,
no later than July 31, 2017 to
Robert Carlson at
Director of Management Services
Council of the Great City Schools (CGCS)
(Please Type or Print)
1. Name ______
2. Position ______
3. District ______
4. Address ___ Street City State Zip Code
5. Phone ________ ______
For Service or More Information Contact:
Robert Carlson
Director, Management Services
Office Ø (202) 393-2427 Cell Ø (202) 465-1897 Email Ø
1301 Pennsylvania Avenue, NW, Suite 702
Washington, DC 20004
Award for Excellence in Financial Management
About the Program
The Council of the Great City Schools’ (CGCS) established the Award for Excellence in Financial Management in 2008 to recognize Council member districts that support the highest standards in financial accountability and controls that are needed to safeguard and protect the financial integrity of the district. These efforts reflectan extraordinary dedication to excellencein financial management and demonstrate outstanding stewardship of taxpayer dollars with the ultimate beneficiaries being the childrenof their districts. Four Council member districts have been recipients of the award.
Review Process
Council member school districts participating in the awards program complete an assessment form and supply supporting documentation to demonstrate they comply with a series of management practices that represent the highest standards in financial accountability and control in nine categories. After a preliminary review, a panel of highly respected subject-matter experts from major urban school systems across the country is chosen to review the assessment form and supporting documentation. The review process also entails a site visit to interview the district’s administrative staff and review any additional documentation that may be required.
Review Period
Applicants must email the official assessment form and supporting documentation to Robert Carlson, Director of Management Services at . The closing date for filling the required information is July 31, 2017. The program staff will provide participants with notification of award or reasons for denial following a thorough review process.
For Service or More Information Contact:
Robert Carlson
Director, Management Services
Office Ø (202) 393-2427 Cell Ø (202) 465-1897 Email Ø
Financial Management Practices
A. GENERAL FINANCIAL MANAGEMENT STANDARDS / YES / NO / Documentation[1]1. Mandatory Structure, Staffing and Training Practices
1.a. The Financial Services Department has an approved organizational structure with functions appropriately segregated to control for each of the following --
· Budgeting
· Expenditure control and reporting
· Financial Reporting
· Procurement, receipt of goods and services, and accounts payable
· Salary setting, attendance reporting and payroll processing
· Risk Management and Treasury functions
1.b. The position descriptions for financial services positions contain appropriate education and experience requirements.
1.c. Financial services units are appropriately staffed to ensure effective delivery of financial services.
Recommended Structure, Staffing and Training Practices
1.d. Financial services staff are cross-trained for critical accounting processes.
1.e. Financial services staff and decentralized managerial and accounting staff receive periodic training and professional development.
1.f. District staff periodically analyzes cost savings of alternative financial delivery, e.g., outsourcing of selected functions.
1.g. Staff receive periodic communications to emphasize goals and objectives
1.h. Other Structure, Staffing and Training Practices of the Department (Enumerate and document)
2. Mandatory Policies and Procedure Practices
2.a. Written procedures have been developed for each of the following--
· Identification and description of principal accounting records
· Standard accounting and journal entries including requirements for support documentation
· Identification of positions that approve accounting and journal entries prior to entry
· Instructions for determining cut-off and closing of accounts for each accounting period.
2.b. The district has approved ethics policies for district financial staff.
2.c. The district periodically evaluates and updates its Procedures Manuals for each financial
area
Recommended Policies and Procedure Practices
2.d. The district has established written procedures for confidential reporting of alleged improprieties.
2.e. Other Policies and Procedure Practices of the Department (Enumerate and document)
3. Mandatory Financial Systems and Reporting Practices
3.a. The district’s financial components have integrated software systems that minimize manual processes for each of the following functions--
· Efficient decentralized and one-time data entry
· Capital projects tracking by and across fiscal years
· Automated reconciliations between control accounts and subsidiary records
· Direct deposit program for payrolls
· Availability of a position control system for full-time positions reconciled to the approved budget
· The capacity to generate a variety of ad-hoc analyses and simulations.
3.b. The accounting system facilitates accountability for restricted sources of funds through fund/grant/project control.
3.c. District financial staff provide the board and district management with monthly and annual financial reports in an easy-to-understand summary format.
3.d. District financial staff provide effective information to the board and management on funding sources, budget limitations, and financial impacts relating to major program and contract proposals.
Recommended Financial Systems and Reporting Practices
3.e. The district uses computerized requisition control procedures and minimizes multiple non-originator approvals of requisitions within defined dollar thresholds.
3.f. District staff analyze financial accounting, control, and reporting procedures to minimize duplication of efforts and non-value added activities.
3.g. District managers receive periodic (at least monthly) reports and can electronically view data showing budget vs. expenditure information for their area of responsibility.
3.h. District financial staff analyze contract proposals and other financial negotiations, especially those involving significant dollar limitations to the district.
3.i. District financial staff analyze major expenditures in cost and report findings to management.
3.j. Other Financial Systems and Reporting Practices of the Department (Enumerate and document)
B. INTERNAL CONTROL STANDARDS / YES / NO / Documentation
4. Mandatory Internal Control Practices
4.a. The district has an Internal Audit function or Inspector General which examines both central office and school based financial operations.
4.b. The district takes steps to resolve or correct, and prevent the reoccurrence of any significant weakness in internal, controls, fraud, mismanagement, or financial misstatement identified by the district’s external auditor, any federal or state audit, internal audit, law enforcement agency, or other review group.
4.c. The district has established significant controls over receipting processes for each of the following functions--
· Timely depositing and recording of collections
· Recording of collections to the correct accounting codes
· Compliance with federal, state, and local (if applicable) laws, rules, and policies
4.d. The district has established effective controls over payroll processes for each of the following functions--
· Appropriate and timely reporting of federal and state payroll taxes
· Appropriate and timely reporting of other payroll deductions, e.g., insurance premiums
· Proper charging of salary costs to the correct account codes
4.e. The district has established effective controls over accounts payable for each of the following functions--
· Payments are for authorized purposes, have sufficient budgetary authority with pre- purchase order verification of funds availability
· Payments are supported by evidence that goods and services were received
· Payments are supported by original vendor invoices
· Disbursements are charged to the proper account codes
4.f. The district has instituted procedures to minimize the incidence of check fraud through each of the following measures--
· Use of check stock with security features
· Positive pay
· The securing of check stock
4.g.. The district has written policies and procedures with instructions on employee responsibilities for P-card transactions with written acknowledgements signed by employee.
Recommended Internal Control Practices
4.h.. Vendor invoices and potential upcoming payments are systematically aged and periodically reviewed to maintain a reasonable vendor paying cycle.
4.i. The district has a contract with a Bad Check Collection Agency
4.j. The district has a systematic processes to identify duplicate invoicing
4.k. The district utilizes electronic procedures for the payment of significant vendor, deduction, and retirement transactions, including the use of appropriate controls.
4.l. The district uses automatic pay-deposit for its payrolls.
4.m. The district has a comprehensive ethics policy.
4.n. Other Internal Control Practices of the Department (Enumerate and document)
C. BUDGET, STRATEGIC PLANNING AND MANAGEMENT STANDARDS / YES / NO / Documentation
5. Mandatory Budget Practices
5.a. The district produces and adopts an annual budget that provides useful and understandable information to board members and stake-holders.
· Budgets are prepared and adopted pursuant to applicable state law and local ordinances (if fiscally dependent).
· District staff use appropriate revenue-estimating practices, including prior-year comparisons, program and enrollment criteria, and formal historic trend analyses.
· The district uses an annual and long-range (three-five years) budget planning process and timeline that is clearly communicated to involved stakeholders, including a clear statement of program and financial assumptions and proposed policies.
· The district systematically reviews and analyzes interim fiscal year expenditure activity and school and departmental budget amendments and prepares formal budget amendments for board approval at least on a quarterly basis.
· The district prepares, adopts, and formally updates on an annual basis a five-year capital spending plan, providing both revenue estimates and proposed capital projects, including the effects of proposed capital projects on the operating budget.
5.b. The district allocates resources to schools based upon objective district wide program and enrollment criteria adopted by the board and available for review by all stakeholders.
5.c. Schools and department level budgets and expenditure data are available to all stakeholders in an understandable format.
Recommended Budget Practices
5.d. The district’s strategic plan for improving student achievement and performance is clearly present in district budget planning.
5.e. The district permits schools and departments to effect budget amendments online (within fund and designated programs) up to defined dollar thresholds using automated procedures with embedded decision rules.
5.f. The district successfully participates in juried budget presentation reviews, such as the Government Finance Officers Association (GFOA) Outstanding Budget Presentation Award or the equivalent program administered by the Association of School Business Officials (ASBO).
5.g. Other Budget Practices of the Department (Enumerate and document)
6. Mandatory Strategic Planning Practices
6.a. The district’s strategic plan includes a provision for maintaining adequate levels of unreserved fund balance adopted by the board.
Recommended Strategic Planning Practices
6.b. The district’s strategic plan objectives can be tied to specific departments or projects and provide guidance for budget decisions.
6.c. School principals and the district budget officials include relevant stakeholder and community input when developing school-level and district plans and budgets.
6.d. The district has incorporated review of school-level and departmental performance measures and results as a component of district-wide budgetary decision making.
6.e. The budget document includes a discussion of how the Strategic Plan relates to budget.
6.f. Evidence that results relating to performance measures is included in the departmental section of the budget document.
6.g. Other Strategic Planning Practices of the Department (Enumerate and document)
D. INTERNAL AND FINANCIAL (External) AUDITING STANDARDS / YES / NO / Documentation
7. Mandatory Internal and Financial (External) Auditing Standards
7.a. The district has established an internal audit function with its primary mission that (1) provides assurance that the internal control processes in the district are adequately designed and functioning effectively and (2) offers recommendations and counsel to management that will improve performance where appropriate.
· Employees performing the internal audit functions have adequate education and
technical training necessary to ensure that due professional care is exercised in the
performance of their audits
· For the purposes of safeguarding cash and the protection of employees, armored car services are used
for the collection of funds from sites.
· Internal auditors are not limited in their access to records or on the scope of their activities.
· Audit programs are used by the internal auditors for each activity reviewed to document the nature, timing,
and extent of their audit work.
· Internal auditors are functionally independent of the activities they are auditing.
· Reports are issued by the internal auditors that document the scope of their work, findings, and management
response.
7.b. The district ensures that it receives an annual external audit and uses the auditor management internal control findings to improve its operations.
· Audit reports have been filed with appropriate oversight bodies in accordance with applicable state, federal, and
local (if fiscally dependent) filing requirements
· Audit reports indicate that the audits were completed in accordance with Government Auditing Standards.
7.c. The district provides for timely follow-up of findings identified in the external audit.
· Procedures have been established to provide for the timely review of findings included in the external audit, development of a corrective action plan, and assurance that corrective actions are implemented.