For children, school is still about starting with the ABCs. However, for many modern school districts and private institutions, education is focused on 123s. Educational districts and private schools look to school boards to manage the logistics and standards needed to educate young people, including money matters. School boards play key roles in helping manage district and institutional finances, and their help comes in multiple ways.

Setting Financial Goals

School boards help districts focus their resources, which come from public taxes or private fees, by setting realistic financial goals. This important work involves strategic planning to help educational institutions promote student achievement by making the most of their funds. 

These periodic planning reviews require business acumen, and many boards include experienced business people, such as the Board of Directors at Saint Martin de Porres High School. Board members should be knowledgeable about financial matters so they can ask the right questions and offer pointed suggestions aimed at optimizing finances for the good of the children. 

Reducing Inefficient Spending

Boards of directors for educational institutions and districts put their knowledge of modern markets to use to help reduce or eliminate spending that is wasteful or overly lavish. This includes overspending on consultant attorneys. While this service is important and, at times, invaluable, schools and districts should not be imprudent in their legal spending. Those experienced in the world of business can offer sound advice gleaned from experience to help manage uneconomical spending in many areas, from legal fees to purchasing equipment and supplies. 

Approving Financial Reports and Matters

Educational boards ensure all reports dealing with financial matters agree. Boards also review expenditures item by item and review payrolls. Studying payroll is a vital matter for educational boards, as in some cases, payroll can account for as much as 75% of expenditures. 

Managing the Annual Audit

In many cases, locations require districts and private institutions to be audited annually.  Educational boards set auditor fees, keeping in mind the specific points auditors will examine. Board members need knowledge of and experience with advanced finances so they can interpret and understand audit results. Furthermore, they should be able to extrapolate best practices from audit findings to help schools best serve students. 

Preparing the Budget

Budget-making is a task that may cause people’s eyes to water. This is why school boards need professionals experienced with creating complex budgets. This advanced financial management includes looking ahead to potential scenarios and building space for unexpected expenses into financial plans. 

Maintaining a Code of Ethics

Board members are responsible for keeping a code of ethics that ensures student interests are paramount to all that is decided and carried out. For example, board members should recuse themselves from voting due to a conflict of interest if they or family members could benefit from voting decisions. Family members also should not be favored. 

Directors of schools, in the ideal scenario, bring together financial knowledge and experience from successful business management in order to help students be the best they can be. This is important, forward-looking work. When young people are given the resources they need to learn, the entire society benefits.