FISCAL MANAGEMENT

Fiscal management is the process of keeping an organization running

efficiently within its allotted budget. Though the word "fiscal" can be used
interchangeably with the word financial, in most cases, fiscal management
refers to money management within a government entity. Overall, its goal is
to improve the way the department operates by properly planning,
recording, and performing procedures that relate to the budget. This
involves a variety of tools, including budget spreadsheets, accounting
software, and guides outlining procedures for department management.

Poor fiscal management is indicated by a lack of record-keeping and

unnecessary or unplanned expenditures that can cause a department to go
over budget or fail to meet its objectives. Generally, fiscal planning is done
yearly, often coinciding (the same point or period of time) with the fiscal
year under which the department operates. A fiscal year is typically a 12-
month period, but it is not always the same as a calendar year.

The types of expenditures accounted for in a fiscal budget differ,

depending on the organization. Fiscal expenditures for an educational
institution might include buying and maintaining property, supplying
electrical power, and educating instructors. Budgeted expenditures at an
emergency services department might go to purchase and upkeep of
emergency vehicles, uniforms, and advanced training for emergency
services professionals.

A well-designed management plan can supply a guide upon which

department members base financial decisions. Detailed budgets can help
prevent financial emergencies by planning recurring expenditures that an
organization regularly faces, but which might come as a surprise to
managers operating without proper planning. For instance, if a department
has already budgeted for the cost of cleaning uniforms, the cleaning cost
will not come as a surprise that costs an organization more than its budget
can afford. Budgeting for this type of cost can also give a fiscal manager
time to find less expensive solutions for costs placed within the budget.
This saves money on avoidable last-minute emergency expenditures that
might cost more than they would if they were properly planned.

Generally, a good fiscal management involves recording all fiscal

transactions in a checks-and-balances system that reduces mistakes or
omissions that might lead to surprise budget overages. After financial
transactions are recorded, they must also be reconciled on a regular basis,
usually monthly, to help a fiscal manager identify any discrepancies
between the financial records and the available remaining budget. Without
proper and regular reconciliation, a small error in recording financial
transactions can become a large deficit over time that may create serious
budget shortfalls.

WHAT IS AN SCHOOL FINACE OFFICER?

 An employee in this class responsible for managing the fiscal affairs
of a school system through the installation and maintenance of an
integrated system to plan fiscal needs, to ensure valid disclosure of
receipts and disbursements and to make sound investments of any cash
balances. This employee interprets and follows regulations prescribed by
the Local Government Commission, funding agencies and the board of
education. The employee exercises discretionary judgment in the resolution
of operational problems and correction of the resulting effects of these.
Errors may cause significant disruption of the school system's operations
and/or loss of considerable funds. The employee receives general direction
and the work is evaluated through accomplishments and the reports of
official audits. Direct supervision is exercised over the staff in the business
office.

DUTIES AND RESPONSIBILITIES OF SCHOOL FINANCE OFFICER

Develops, for the superintendent and board, short and long term
budgets and amendments with concise explanation of needs and reasons
for any change.
Establishes and maintains an accounting system to detail assets,
liabilities, equities, obligations, expenditures, and current and projected
revenues.
Certifies the requisition of operational funds.
Receipts and oversees the deposit of all money accruing to the
school system.
Allocates funds to programs and schools with conditions governing
their use.
Conducts pre-audits of all obligations to ensure budgeted
appropriation and unencumbered balances.
Approves or disapproves necessary disbursement for fiscal claims
against the school system.
 Audits accounts of employees collecting or receiving taxes or other
monies.
Ensures the timely and accurate preparation of required and
requested reports.
Invests all idle cash as directed by the local board.
Assigns work and evaluates performances of subordinates.
Recommends to the superintendent the selection and discipline of
employees.
Maintains liaison with other departments to serve as the financial
advisor.

KNOWLEDGE, SKILLS AND ABILITIES

Considerable knowledge of generally accepted accounting concepts
and principles with emphasis on governmental accounting.
Considerable knowledge of information processing and networking
practices.
Considerable knowledge of computer operations and capabilities.
Working knowledge of general business management practices.
Ability to analyze and synthesize data.
Ability to present complex information in a clear and concise manner.
Ability to plan, organize and direct work of subordinate personnel.
Ability to communicate clearly regulations and practices.

SUGGESTED EDUCATION AND EXPERIENCE

Baccalaureate degree from an accredited four-year college or university
with a concentration in accounting, finance or business administration and
three years of professional experience in business related field; or an
equivalent combination of education and experience.
SPECIAL REQUIREMENTS
Qualify for certification as a School Business Administrator according
to policy of the State Board of Education.
Qualify for a performance bond.

WHAT IS PAYROLL?
Total amount required to pay workers and employees during a week,
month or other period.
Paysheet which records wage rates, deductions, and net pay.

WHAT IS A PAYROLL DEDUCTION?

Amount withheld by an employer from employee's earnings. It

typically includes income tax, national insurance or social security
contributions, and may also include group insurance or pension fund
contributions, union or association dues, authorized wage assignments,
etc.

FINANCIAL STATEMENTS

Summary report that shows how a firm has used the funds entrusted
to it by its stockholders (shareholders) and lenders, and what is its current
financial position. The three basic financial statements are the (1) balance
sheet, which shows firm's assets, liabilities, and net worth on a stated date;
(2) income statement (also called profit & loss account), which shows how
the net income of the firm is arrived at over a stated period, and (3) cash
flow statement, which shows the inflows and outflows of cash caused by
the firm's activities during a stated period. Also called business financials.

a.) Balance Sheet - A condensed statement that shows the financial

position of an entity on a specified date (usually the last day of an
accounting period).
Among other items of information, a balance sheet states (1) what
assets the entity owns, (2) how it paid for them, (3) what it owes (its
liabilities), and (4) what is the amount left after satisfying the liabilities.
Balance sheet data is based on a fundamental accounting equation (assets
= liabilities + owners' equity), and is classified under subheadings such as
current assets, fixed assets, current liabilities, Long-term Liabilities. With
income statement and cash flow statement, it comprises the set of
documents indispensable in running a business.

b.) Income Statement - A summary of a management's performance as

reflected in the profitability (or lack of it) of an organization over a certain
period. It itemizes the revenues and expenses of past that led to the current
profit or loss, and indicates what may be done to improve the results.
In contrast to a balance sheet, an income statement depicts what
happened over a month, quarter, or year. It is based on a fundamental
accounting equation (Income = Revenue - Expenses) and shows the rate
at which the owners equity is changing for better or worse. Along with
balance sheet and cash flow statement it forms the basic set of financial
information required to manage an organization.

c.) Statement of Financial Condition - A quantitative summary of a

company's financial condition at a specific point in time, including assets,
liabilities and net worth. The first part of a balance sheet shows all the
productive assets a company owns, and the second part shows all the
financing methods (such as liabilities and shareholders' equity).

d.) Statement of Retained Earnings - A document that reflects the amount

of income received for the fiscal year.
Financial statement showing the net income of a firm set aside as a
reserve, paid out to the stockholders (shareholders), and consumed by the
losses. It usually accompanies an income statement or statement of
owners' equity.