EDLD 5342 Final Reflection

As aspiring superintendents, we all have had the opportunity to delve a bit further into the complicated world of school finance.  For me, it has been a learning journey that will certainly not end with the conclusion of this course.  One of the most thought provoking and reassuring things that I learned throughout this course is that very few people really have a deep understanding of the school finance system.  As a future district leader, I realize that I will need to continue to learn as much as possible, but I also realize the importance of building a strong advisory team.  The district CFO is a critical component to that team.  Superintendents usually develop from the classroom, where as CFOs typically come from the business world.  The two worlds are very different, but each person must have an understanding of the role both play in ensuring the success of the district.

Another key idea that I will take back to my current position and district is the importance of having solid financial procedures and processes in order to eliminate the opportunity for financial mistakes.  District personnel must make sure that everyone who is involved in the book-keeping process is adequately trained.  District financial procedures and policies must be clear, concise, and monitored.  When people know that internal audits are being conducted regularly, then there will be fewer instances of financial wrong doing. 

In conclusion, I have enjoyed participating in the learning journey that we all have participated in over the past five weeks.  I believe we have all had to rely on assistance from each other in order to sort through the confusing world of “school finance.”  I am confident that the skills that we have learned during this course will be helpful in all future district leadership positions.

EDLD 5342 Week 5

• Example 1--Standard 1.2 of the Code of Ethics states that, “the educator shall not knowingly misappropriate, divert, or use monies, personnel, property, or equipment committed to his or her charge for personal gain or advantage.  An example of an ethical violation within this section would be an administrator who utilized district personnel and district property to assist with a personal move.  The superintendent directed personnel under their supervision to come to their home and help box up personal belongings after the sale of their home.  District personnel were “on the clock” and used district boxes to assist the superintendent with the move.  This is an obvious violation since the “educator” knowingly used district personnel and property for personal gain. 

Consequence—The superintendent could face immediate and long term consequences for misusing public funds and resources.  The board could call for the superintendent to be placed on administrative leave, pending the results of an investigation.  If the investigation substantiated the allegations, then the superintendent could ultimately be forced to re-pay the taxpayers’ dollars that were used for personal gain, and the superintendent could face termination by the board.

Preventive action—The district should provide training for all educators on the code of ethics.  Professional educators must understand that it is their responsibility to uphold a high standard of ethical behavior.  Additionally, district employees should be trained to know that they are not required to perform job duties which are not directly related to the professional day to day operations of the district.

• Example 2—Standard 1.4 of the Code of Ethics states that, “the educator shall not use institutional or professional privileges for personal or partisan advantage.”  An example of a violation of this standard would be a superintendent who uses district meetings as a forum to advocate religious beliefs and opinions to stakeholders.  Specifically, I was informed of a superintendent who used the privilege of being a leader within the district to target parents and abuse public forums by disseminating information about Christianity and the importance of teaching abstinence as a Biblical truth.  This action is a violation because the superintendent used their position of power to influence captive audiences and disseminate information that was part of a personal agenda.  The pamphlets and literature were all printed by the district, which is an inappropriate use of funds.

Consequence—Some districts are very conservative, while others are very liberal.  Depending on the culture and climate within a school district, an educator who uses district resources to promote a personal agenda could face an investigation into the matter.  If stakeholders feel that the educator is abusing or misusing funds, then ultimately it could lead to negative contractual actions. 

Preventive action—District employees should have a checks and balances system in place to “approve” district generated and funded publications.  If more than one district employee was responsible for proofreading and approving district materials, then the opportunity to promote personal agendas would decrease.

• Example 3—Section 1.5 of the Code of Ethics states that, “the educator shall not accept nor offer gratuities, gifts, or favors that impair the professional judgment or to obtain special advantage.”  An example of a violation would be a superintendent who knowingly accepts extravagant gifts (large sums of money) in order to secure a job contract.  Superintendents must be very careful not to violate the BBFB Legal policy, as this could easily be defined as bribery.
• Example 4—Section 2.2 of the Code of Ethics states that, “the educator shall not harm others by knowingly making false statements about a colleague or the school system.”  In connection to school finance, a violation in this area might occur is an educator insinuated that another educator was misappropriating funds.  Allegations of this nature are very serious, and making a false statement about a colleague would certainly be a violation of this section of the code of ethics.

Consequence—If an educator knowingly started false rumors or reports about a colleague who was allegedly misappropriating funds, there could be a multitude of consequences.  For instance, the victim in the situation would certainly have the right to sue for libel/slander.  Also, the board of trustees would be obligated to take some level of disciplinary action against the employee.  

Preventive Action—All district employees should receive annual training regarding the code of ethics.  Employees should be familiar with the district grievance process in order to eliminate the opportunity for someone to make false statements.  Employees should also be informed on the severity of such actions, which could ultimately impact the status of their contract.

• Example 5—Section 2.6 states that, “the educator shall not use coercive means or promise special treatment in order to influence professional decisions or colleagues.”  An example of a violation related to school finance would be a superintendent who offers increased salary or benefits to an individual as a method to persuade an employee to resign or retire.  Personnel matters must be handled with a high standard of ethical behavior.  An educator that used financial power to coerce employees would be violating the code of ethics.

EDLD 5342 Week 4; Part 5

Even though district financial experts are working to deal with the upcoming budget shortfall, I was able to interview our CFO (chief financial officer).  The information he shared was very helpful.  The external auditor is selected by requesting proposals from interested audit firms.  Once the proposals are received, the final selection is then made based on expertise, experience, staffing capabilities, and services offered.  Our district CFO stated that the auditor then conducts an interim audit during the year to make sure financial policies and procedures are followed.  The auditors pull sample transactions for verification.  The year-end audit is completed after the books are closed in August, which is the end of the fiscal year.  The internal control is audited throughout this time to look for any possible wrong doing.  The auditors then make conclusions and complete a report to determine how accurately financial procedures are being followed.  During this process, the auditors make recommendations, if necessary, on how the district can improve financial record keeping processes.  The findings are then reported to the district and shared with the Board of Trustees and TEA (Texas Education Agency.)

In reflecting on the information obtained during my interview with the CFO, it seems as though the audit process is very systematic and purposeful.  I believe that this is one of the most important components of the district’s financial system in order to identify areas that need improvement.  When you have people dealing with very detailed financial policies and procedures, there must be an awareness of the accountability that comes with legally required auditing.  Humans are going to make mistakes, and I believe being pro-active to identify potential problems before they occur is fiscally responsible.  Large districts have large numbers of people that deal with the finances, which requires sound financial procedures in order to eliminate misuse of funds.

EDLD 5342 Week 4; Part 4

In order to obtain information about the district’s financial system, I interviewed the Chief Financial Officer for the district.  Our time together was very limited due to the enormous changes that school districts in Texas are facing due to the budget shortfall.  The CFO shared that 80% of the district’s total budget is allocated for personnel salaries.  Having worked as a campus principal for the past six years, I was not at all surprised by this figure.  This year we have had numerous meetings to prepare for the inevitable impact of the Texas budget shortfall.  We have had several planning sessions to analyze staffing, since it comprises the largest portion of the district budget.  Fortunately, my district has not had to cut too many positions.  The Superintendent and CFO announced that the cuts could be handled through normal attrition.  The district has instituted a hiring freeze, which means open positions will be filled with existing personnel.  We are a fast-growing district and are planning to open a new elementary campus in August.  All positions for the campus are being filled with what essentially was “over-staffing” from existing campuses.  A five percent salary increase would certainly have both positive and negative impacts.  On the positive side, teachers are working harder than ever to meet the ever increasing performance standards and expectations.  When a district has the funds available to offer a five percent raise, I believe it validates the hard work that is happening on the district’s front lines, which is the classroom.  A five percent raise is great for improving morale, district and campus culture, and can be used as a tool to motivate professionals to give their best to their students every single day.  On the negative side, districts are facing multi-million dollar budget cuts, and they simply cannot afford to offer a raise of any kind.  A five percent raise would force most districts, including mine, to dip into their fund balance.  Districts might be able to afford that for one year, but my CFO mentioned that it is not fiscally responsible to use the fund balance in that manner.  Offering a five percent raise that is paid for by the fund balance could potentially put districts in financial hardship in the future.