Within their first year of service, every member of the board of education is required to partake in a minimum of six hours of training in financial responsibilities and oversight. But what exactly is covered in this training, and why is it so important for board members to participate? Let’s talk about it.
Overview of Requirements
Section 2102-a of the New York State Education Law requires board members within the first year of their term to complete at least six hours of mandatory training on financial oversight, accountability, and fiduciary responsibilities of board members. This requirement applies to all appointed or elected board of education members and BOCES board members. Even board members who are certified public accountants with experience auditing school districts are required to participate.
All training curricula and providers must be approved by the Commissioner of Education. Acceptable courses include those offered by the State Education Department, the Office of the State Comptroller, and organizations or individuals that have been approved by the Commissioner of Education. Trainings are offered in person, in live virtual format, or online. After completing training, board members must file a certificate of completion with the district clerk. Board members are only required to complete this training once, regardless of terms served.
Why Is This Training Necessary?
The purpose of this mandated training is to ensure board members are aware of their legal and fiscal responsibilities, as well as to equip them with the expertise needed to provide financial oversight, manage district funds, and improve student outcomes.
What Does the Training Cover?
Topics covered by these courses include the following:
- The roles and responsibilities of district officials, including internal auditors, treasurers, and members of the audit committee
- Financial reports
- Relevant laws and regulations
- Internal controls and risk assessments
- Revenue sources and the budget process
- Internal and external audits
- Monitoring school district financial condition
- Key financial management and accounting practices such as cash flow projections and budget transfers
- Preventing and responding to fraud, waste, and abuse of district resources
- Indicators of a financially stressed district
The Importance of Fiscal Oversight Training
Training in these core areas provides board members with an understanding of key financial concepts, their fiduciary responsibilities, and how to manage public funds. While not required, it is recommended that board members periodically re-take courses to stay up to date with changing regulations. Participating in these trainings is just one step to ensure the financial health of your school district. Another way to keep your district fiscally sound is by partnering with RBT CPAs’ education accounting team. Our experts are familiar with the unique financial challenges facing public school districts and are well-equipped to support your district’s accounting, tax, audit, and advisory needs. Give RBT CPAs a call today and find out how we can be Remarkably Better Together.