SDAO Best Practices

Best Practices for Oregon Special Districts

Members to complete the Best Practices Self-Assessment Checklist Online

Public entities are under constant public scrutiny. Policy-making elected officials are concerned about responsiveness to their constituency. Politics may sometimes influence decisions. Because of this, public entities operate in a different environment than the private sector. This environment also impacts actions involving organizational risks arising from administration, operations, and board decisions.

To properly perform their duties all Oregon special district boards and management personnel need to address the risk management functions for their entity. Risk management is described as a process of planning, organizing and controlling losses for the district at a reasonable cost. Risk management functions can and do vary widely in Oregon special districts depending upon the type, size, and complexity of a district's operation. Risk management includes five common elements for all Oregon districts. Districts should:

Ensure that loss exposures are identified
Examine the options to treat the exposures
Select and budget for the best option
Fully implement the best option
Annually monitor and set appropriate policy to best manage your operations

Special districts should establish policies that guide their risk management efforts based upon “Best Practices.” Best Practices are tools for specific activities that a district may use or undertake to properly identify risks, and options to mitigate the risks. Staff and budget resource limitations in many cases are obstacles in assessing reasonable costs for the district in attempting to control and manage these risks.

In an effort to improve decision maker’s abilities in setting policies to develop a risk management program, SDAO has created a self-assessment checklist for boards and managers to assess the Best Practices available relative to their district size and complexity of operations. This guide generally categorizes the areas of risk by administrative activities, operation of facilities and services, policy setting and organizational structure. Districts are categorized in the matrix as large, medium-sized, small, and very small organizations. Definitions are provided to assist in determining the most appropriate classification for your district.

The Best Practices Self-Assessment Checklist is divided into three sections. The first section, Board of Directors Responsibilities, should be completed by the district Board of Directors as the policy making body of the district. The second section, Management Responsibilities, should be completed by district manager or management personnel. The third section will be one of the following, depending on which survey applies to your district: Fire, Irrigation, Park, Port, Transit, or Supplemental for all others. Please complete the supplemental checklist indicated for your type of district to receive the maximum amount of points possible.

Size Classification for Oregon Special Districts

Large Organizations
Characterized by maintaining permanent staff positions for major functional areas including Executive Director, Finance/Accounting Manager, Personnel Administration, and various operational supervisors. Operations of these districts are complex and require ongoing strategic planning, automatic/electronic data systems, formal training programs, and formalized policies and procedures.

Medium-Sized Organizations
Characterized by employment of a full-time manager but other administrative personnel may share duties that are commonly segregated in large organizations. For example, the Finance Manager may also be responsible for personnel activities. This size organization generally has automated systems but formal training programs and a formal process for continually updating policies and procedures are not as consistent as in larger organizations. Budget limitations can affect the ability of this sized organization to commit to outside consultations and fixed budget authority for various risk management activities.

Small Organizations
Characterized by full-time managers with no professional staff support. Manager generally has ongoing operational responsibilities. District operations are focused on a few primary activities. Budgets for training and risk management assessments are limited requiring district to rely on utilizing free or low cost training and materials available through associations or informal contact with peers.

Very Small Organizations
No full-time personnel resulting in the Board being responsible for many tasks that are generally undertaken by staff. This district is characterized by service being delivered and a small budget that limits training and risk management efforts to only specific problems that arise. The district relies almost exclusively on advice from association affiliations and peers. The district generally maintains only manual accounting records and maintains very limited written formal policies.

Best Practices Reference Guide

SDAO has the following reference material and sample policies available in its resource library. If you need assistance in locating a copy of any of the following or to find reference information on any of the questions listed, please call Melissa High at 1-800-285-5461. Complete the Checklist online at www.sdao.com and get immediate access to reference material.

Board Duties and Responsibilities

SDAO Management and Policy Resource Guide
ORS 198 and the ORS Statute that governs your type of district. A listing of statutes by type of district can be found in the SDAO Management and Policy Guide.
ORS 246, 260 and 255 – Elections law
Districts Elections Manual – Oregon State Elections Division
Campaign Finance Manual – Oregon State Elections Division
Attorney General’s Administrative Law Manual and Model Rules of Procedure – Oregon Department of Justice

Public Budgeting

SDAO Management and Policy Resource Guide
ORS 294 – Public Budgeting
Local Budgeting in Oregon , Revised Edition – Oregon State Department of Revenue
Local Budget Laws and Notice of Property Tax Forms and Instructions Booklet – Oregon State Department of Revenue

Personnel Policies

SDAO Management and Policy Resource Guide
A Handbook for Oregon Employers of Wage and Hour Laws – Oregon Bureau of Labor and Industries

Public Contracting

SDAO Management and Policy Resource Guide
ORS Chapters 279 and 282
OAR Chapter 125
Attorney General’s Model Public Contract Rules Manual – Oregon State Department of Justice

Financial Controls

SDAO Management and Policy Resource Guide
ORS Chapters 294, 297 and 310

Public Meetings and Records

SDAO Management and Policy Resource Guide
ORS Chapter 192
Attorney General’s Public Records and Meetings Manual – Oregon State Department of Justice