Lessons Learned from Board Budget Deficits

apple-256261_1920-133251-edited.jpgFunding is a vital component to fueling school district success. But what happens when a school board misspends funds, provides inconsistent budget reports or fails to comply with district policies?

Below, we overview what can go wrong if budgets are mismanaged.

The Affects of Disjointed Board Management

Board members are responsible for keeping schools financially accountable. If funds are mismanaged, school boards may be unable to effectively gauge expected budget versus spend. This, in turn, can lead to:

  • Fund misallocation. For example, investing in value-add, but unnecessary, equipment or programs under the false premise that money is available versus committing it to required initiatives.
  • Overspending. Dedicating money to raises, new technology, building improvements and more that is simply not there.
  • State-mandated budget cuts. If the situation gets too serious, the state may step in and require a balanced budget. This will often lead to staff and program cuts (for example, bussing, field trips, extracurricular activities).

All of the above have a negative affect on students, faculty and the local community.

Keep Boards In Line with a Board Portal

Avoid a dire financial situation for your board. Focus on strategic budget management with a board management solution that: 

  • Allows board members to better communicate, ensuring all are on the same page with approved activities and spend.
  • Stores board-related materials, such as meeting minutes and fundraising information, in a centralized system for easy member accessibility.  
  • Assigns board members specific tasks to ensure job requirements are fulfilled.

How does your board practice sound financial management? Share with us in the comments below.    

Image Source: jarmoluk