Greater Opportunity Through Innovative Change

A Management Study of the Little Rock School District Final Report March 25, 1999

Prepared by: MGT of America, Tallahassee, Florida (Management Consultants to the Little Rock School District)

Chapter 6: Assessment of Financial Condition

Recommendation 6-25:

ESTABLISH A NATIONAL AND LOCAL COMPARATIVE BENCHMARK SERIES OF SCHOOL DISTRICTS AND ORGANIZATIONS.

In the absence of establishing benchmarks, the LRSD has very little direction for quality improvement. The LRSD Strategic Plan supports the concept of comparative analysis with other benchmark school districts and organizations; however, for the most part, no comparisons have been made by the Little Rock School District.

Today's demanding fiscal environment creates a need to find ways to enhance financial decisions with innovative management, and to facilitate the creation and communication of beneficial fiscal tools, techniques and procedures. Benchmark guidelines can facilitate better understanding and communication of issues to citizens and elected officials. Greater comparability and compatibility of fiscal practices and budget presentations across jurisdictions can facilitate innovative results. The art of budgeting lies in the LRSD knowing when the consistency or inconsistency presented by such benchmarks has to accomodate the unique requirements of a particular time and place.

Implementation Strategies And Timeline

(September 1999) The Superintendent should direct senior staff to establish a formal process for implementation of an action plan to set up benchmark school districts and other comparable organizations to create ongoing quality improvement results.

(Fall 1999) The Superintendent and appropriate staff should develop the key indicators to be used to measure results outlined in the Strategic Plan as the foundation for benchmarking.

Fiscal Impact: Benchmark comparisons can be identified and made within existing sources.

Recommendation 6-26:

ESTABLISH A TASK FORCE TO REVIEW COST ACCOUNTING SOFTWARE OPTIONS FOR PURCHASE AND IMPLEMENTATION WITHIN THE NEXT TWO YEARS

The comparative analysis of ERS statistics highlights the need for a system of accountability within LRSD that will prorate and allocate costs according to logical patterns of shared expense. A prior report had recommended that the LRSD implement the use of a computer software package called In-$ite. A brief overview by MGT of In-$ite's reports, formats, and how the allocation system works found this system to be consistent with many cost reporting systems. The In-$ite system and others should be considered by the district. The purpose of this endeavor is to more accurately reflect how many districtwide costs, as well as other direct and indirect costs, should be spread as a shared cost for all operational units.

Implementation Strategies And Timeline

(Summer 1999) The Superintendent should select the task force to review cost accounting software and coordinate the process with the objectives of the Strategic Plan.

(August 1999) The Superintendent should initiate the first task force meeting and provide direction as to expectations and timelines.

(Fall 1999) The task force should begin the process of reviewing cost accounting software for recommendation to the Superintendent and Board of Directors.

(December 1999) The Superintendent and Board should select an acceptable cost accounting software package.