Central Business Office Benefits of Use & Comparative Costs

January 9, 2013

Who Are We? Your Back Office!

CBO allows participating districts to share professional office staff, equipment, and other resources in order to maximize efficiency of use and minimize costly duplication at the local level.

Established in the early 90’s with three districts and two staff, housed at S-E.

Currently we support 13 districts with 18 staff from our offices in the SSC.

Payroll Accounts Payable

Claims Auditing Attendance

Downsville Downsville Downsville

Franklin

GMU

Greene Greene Greene

Unadilla Valley Unadilla Valley Unadilla Valley Unadilla Valley

Unatego Unatego Unatego

Sidney Sidney Sidney

Afton Afton

Oxford Oxford Oxford Oxford

Otselic Valley Otselic Valley Otselic Valley

Walton Walton Walton

Norwich

S-E

District Services

Payroll: CBO vs Commercial vendors

Do you get what you pay for? Fortunately, yes!

PaychexPaychexoNo Fed./NYS tax pmts.oNo verification of hoursoNo checking of ratesoNo checking of codeso941/NYS quarterlies cost extraoGarnishments cost extraoW-2’s cost extra

Complete Payroll Complete Payroll ProcessingProcessingoFed./NYS tax pmts. cost extraoVoided checks cost extraoAdd-on checks cost extraoNo verification of hoursoNo checking of ratesoNo checking of codesoW-2’s cost extra

Is there cost savings if you don’t get what you need?

Labor Reporting (monthly & quarterly)

Disability Reporting

Retirement Reporting

Civil Service Reporting

New Hire report each payroll

TRS membership verification

SSN verification

Interface with IRS, DoL, NYS Dept. of Taxation

Balloon payment calculations

Summer & Special payrolls (coaching, stipends, contractual pmts.)

Recoding of labor costs

Annual calculation of new rates/salaries

Prorated salary calculations (staff leaving/starting mid-yr.)

Proration of health/dental insurance

Calculation of retro payments

Encumbering payroll

Pennies Remaining & Deductions Reports in FM

Special year-end payrolls

A/P: Benefit from best practices

Established procedures lead to enhanced turn around time

Designated backups ensure consistency during staff absences

Efficiency through use of technology

Multi-level staff oversight for quality control

Ongoing staff training

We “steal from the best and leave the rest”

Value-added A/P: It’s about more than just a warrant

Printed, stuffed, and mailed w/supporting docs

Date stamping of invoices when received and paid

P.O.’s printed and faxed/mailed

Confirmation of bid pricing

Contacting vendors for invoicing errors (shipping charges, sales tax, incorrect item/quantity, etc.)

-1099’s printed & mailed; file submitted to IRS

Vendor name changes & W-9 file maintenance

Booking of accruals for outstanding liabilities

Archival of current & prior year records

Online sales tax reporting forms

Claims Auditing: “Apples to Apples?”

The Differences

36 audit points vs how many?

Senior Acct. Clk. vs LTA, Aide, hotel bookkeeper, payroll svc., etc.

Trained by School Dist. Internal Auditing Alliance

Identified backups to cover for absences

Board report format endorsed by SDIAA

CBO Services: More Than Meets The Eye

System Administration User resets, additions, inactivation, permission updatesRolling over of fiscal yearGeneral Ledger mapping and ST-3 annual SAMS uploadTax table updates and other software revisions appliedAudit readinessCompletion of ST-3 & Supplemental SchedulesMonthly check-points for financials reported to Board Yearend closing, audit preparation, and hosting on-siteRevenue preservationCategorical Aid review and advisementMonitoring Federal grant expenditures prior to due dateFederal/NYS breakfast & lunch claims tracked vs. payment rec’d.Filing of FS-25’s monthly and FS-10F’s annually (short and long forms)

The Costs Of Being Cost Effective

Overtime, part-time help, support staff - - we plan for the unexpected so you don’t have towe plan for the unexpected so you don’t have to

Employee benefits (health, dental, ERS)- your current and future liabilities transfer to usyour current and future liabilities transfer to us

Equipment repair and replacement- - shared ownership reduces long-term costs for everyoneshared ownership reduces long-term costs for everyone

Office supplies- reduced inventories at discount pricingreduced inventories at discount pricing

Hiring, training, supervision, evaluation- it just gets done, no worriesit just gets done, no worries

District X: $19.7M budget

FTE Composition Assigned Actual

Senior Acct. Clk. 0.65 Payroll, Sr. for Dist., Auditor, Audit backup

Acct. Clerk 1.01 A/P, A/P backup, Payroll helper, Attendance, Bank Recon. Clerk 0.12

Principle Acct. Clk. 0.22 Two available as needed

Business Manager 0.12

2.12 13

Service FTE Cost Annual Volume

Payroll 0.70 $44,762 5k chks., 283 W-2's

A/P 1.16 $74,061 2.4k chks., 1.3k P.O., 23 -1099's

Claims Auditing 0.13 $8,139 4.9k invoice entries

Attend. 0.13 $8,139 241 employees

2.12 $135,101