web analytics
April 28, 2015 / 9 Iyar, 5775
At a Glance
InDepth
Sponsored Post


Home » InDepth » Op-Eds »

The Importance Of Strong Management In Day Schools

Goldstein-110212

Yet other schools just don’t have enough expertise to conduct proper financial oversight. Such schools lack even basic management tools and controls – even though there are so many effective policies and practices that schools could and should be using. They are easy to learn and simple to put into practice.

For example, coherent and informative quarterly financial and cash flow reports are critical to proper financial management. Included in such reports should be a variance analysis to the comparative periods in the budget and prior year. Other important steps schools can take include utilizing tuition management and analytical tools, conducting payroll oversight and reasonableness testing, among other effective controls and procedures. When a school’s management is equipped with the proper financial skills and techniques, it will be able to:

* Discover problems and find corrective actions through proper analysis of financial reports.

* Use the reports to make projections that act as goals and standards for upcoming periods.

* Assess performances against these projections at the end of the fiscal period.

* Work more effectively and cohesively with the lay leadership in achieving better governance and decision-making.

* Respond intelligently to financial inquiries and issues raised by board members, parents, donors and other third parties.

There is another, no less important, reason why schools should ensure that administrative staffs are trained in using effective internal controls and best practices in corporate management: It inspires greater confidence in the parent body and generates a greater willingness in donors to give more. The Shulchan Aruch notes that one should not give tzedakah to an organization unless he knows “shehamemona aleha ne’eman veyode’a linhog ba keshura” (Yoreh Deah 249:7). Roughly translated this means tzedakah should only be given to those organizations with reliable management and the necessary expertise to manage the funds properly.

To be sure, schools that suffer from financial issues generally do so not from malfeasance but from a lack of the financial sophistication necessary to operate the school efficiently. Still, it is inexcusable for such schools to manage their assets irresponsibly and carelessly. Their ship is full of holes and it would be unwise to talk about improvement in fundraising and development before repairing and strengthening the administrative foundation.

 

About the Author: Jake (Yaakov) Goldstein is a CPA and part-time consultant for day schools and non-profit organizations. He is also the executive vice president of Torah Institute of Baltimore. He can be reached at jakegolds@gmail.com.


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

No Responses to “The Importance Of Strong Management In Day Schools”

Comments are closed.

Current Top Story
The Straits of Hormuz
Iran Seizes Cargo Ship Under US Protection in Strait of Hormuz
Latest Indepth Stories
Those who need care can least afford it: African refugees.

We could establish cities of refuge for the refugees; they’d become citizens of these new places.

The International Criminal Court building in the Hague, the Netherlands.

There is cause to believe the ICC is an improper venue for sorting the Israeli-Palestinian conflict.

.The real BDS.

Congress described it as “economic warfare against Israel” yet US Jewish leaders proudly finance it!

World Zionist Congress elections end April 30.

Groups promoting anti-Israel/anti-Jewish BDS right on their websites are running in the WZC election

Pataki is the last Republican Governor to win a majority of Jewish votes.

Obama’s desire to be “fair” enables Iran to get nuclear weapons which will threaten global security

All GOP candidates will continue seeking – and praying – for Jewish money with greater success.

The one reason to make Aliyah outweighs all the arguments not to move to Israel.

“We returned to this Land not in order to be murdered, or uprooted. We came here to be replanted!”

I don’t fear for the future of our people because I believe Yeshiva University has created an “Iron Dome” of Jewish leadership

Poland’s great Jewish cities where Jewish life had once flourished and thrived, were now desolate

Chief rabbi, Rav Dovid Lau, stated that the Torah community’s turnout in the WZO election is vital.

Iran has at its core the same ideology as that of ISIS but, inaccurately, is thought a lesser threat

An early Yom Ha’atzmaut gathering for Israel’s 67th birthday with Pres. Rivlin of Israel and guests

Israel’s Memorial Day shouldn’t be a day of mourning, it’s a day to honor, not another Holocaust Day

God’s 3 part promise for Israel: to the Avot; a plentiful land; the eventual return home by all Jews

More Articles from Jake Goldstein
money

How much wealth exists in the American Orthodox community?

praying robber.jpeg

The pressure to live a lifestyle of the rich and famous can be overwhelming. This just serves, of course, to increase the risk of fraud and deceit.

One of the hottest topics across all spectrums in the Jewish community is the financial sustainability of Jewish day school education in America. Schools have invested a lot of time and resources to train their professionals in the art of fundraising, developing donor relationships, and launching effective capital campaigns. And there has been a concerted effort among Jewish educational organizations to establish programs to assist day schools in improving their governance and developmental practices.

Many American parents are passionate about providing their children with opportunities to participate in sports and develop as great athletes. A recent article in the Financial Post posed the question “Are your kids’ athletic dreams worth breaking the bank for?” For parents of elite athletes, the costs can be astronomical. Such parents designate “tens of thousands of dollars of their household budget to help their child’s athletic career blossom, a sacrifice that impacts everything from daily spending to retirement.”

A recent CNN Money article focused on how more students than ever are requesting need-based financial aid from the private schools they attend. “Private schools are getting flooded with financial aid applications, and a growing number of the parents seeking help are earning $150,000 or more a year,” the article stated. It also pointed out that “overall, the average cost of tuition at private schools across all grades is nearly $22,000 a year, up 4% from a year ago and 26% higher than it was in the 2006-07 academic year, according to the National Association of Independent Schools.”

Printed from: http://www.jewishpress.com/indepth/opinions/the-importance-of-strong-management-in-day-schools/2012/11/01/

Scan this QR code to visit this page online: