Presentation on theme: "1. 2 Budget Development Schedule èJanuary - Proposed Governors Budget To Begin July 1st èApril/May - Presentations To The Board Of Budget Needs For The."— Presentation transcript:
2 Budget Development Schedule èJanuary - Proposed Governors Budget To Begin July 1st èApril/May - Presentations To The Board Of Budget Needs For The Next Year èJune Board Meeting – Public Hearing and Formal Budget Adoption èBudget Revision Submitted Within 45 Days After The State Budget Adoption if Necessary èDecember 15th - First Interim Report èMarch 15th - Second Interim Report
4 How Are Revenue & Expenditure Projections Established? èThere are so many unpredictable factors affecting revenue and expenditures that it is important to develop and utilize budget assumptions based on the best information available at the time the budget is adopted. The Adopted Budget, therefore, should be considered a financial snapshot on the date it is adopted. As variables change, formal adjustments, approved by the Governing Board, are made throughout the course of the year.
5 Where Does The Money Come From? èMost of the districts General Fund revenue is generated from the districts revenue limit, which provides funds to the district based on a State-determined dollar amount times the average number of students who are in attendance throughout the school year. Public education, unlike any other public agency, receives most of its revenue based on the population it serves. èThe second biggest source of revenue is State categorical income that must be spent for selected State determined programs. èFederal income is a small corner of the entire district income but it is growing as new federal commitments are added èLocal income includes interest earned and other small revenue sources
6 How Are Funds Allocated To Support Education? It takes people to teach people and 86% of the Districts total expenditures are committed to the employees of the district. Employee salaries are divided into three separate categories: èCertificated Non-Management – includes teachers, nurses, librarians and others that provide services that require credentials from the State of California. èClassified Non-Management – includes all of the support personnel such as clerical, bookkeepers, custodians, bus drivers, food service and maintenance personnel. èManagement – includes superintendents, principals, vice principals and other instructional and support leaders.
7 What Method Is Used For Allocations To School Sites? èCertificated Positions: Based On Enrollment & Class Size èClassified Positions: Based On Enrollment èSupplies: Based On Enrollment Classroom Supplies: $32- Elementary $50-Junior High Lottery Allocation: $7 Per Student Duplicating Allocation: $7 Per Student First Aid Allocation: $1 Per Student Equipment Allocation: $2,600 Plus $4 Per Student èSpecial Funds Are Allocated Based On Identified Students
8 Whats The Difference Between Restricted And Unrestricted? The general fund is split between restricted and unrestricted funds. The unrestricted general fund consists of revenue received to run the basic educational program, offset by the expenditures of the basic program. The restricted general fund consists of revenue received for specific and limited purposes, offset by the cost of those specific programs.
9 This money is to be spent for college, it can only be used for books and materials RESTRICTED This money is to be spent for college, buy anything you need UNRESTRICTED Tuition Car Books Food Clothes Etc. Books Software Paper Pencils Workbooks
10 How Much Money Is Left Over In The General Fund At The End Of The Year? The ending balance consists of the following: Total Budget includes the beginning balance and all anticipated income for the year. The Ending Balance is the resources that remain after expenditures are deducted from the total budget amount. Beginning Balance $ 63,807,796 Plus Anticipated Income $231,890,535 Less Planned Expenditures($238,005,709) Ending Balance $ 57,692,622
11 Ending Balance$57,692,622 Less Stores($ 151,213) Less Revolving Fund($ 89,000) Less Economic Uncertainties($7,140,171) Assigned –Potential Mid-Yr Cut ($11,796,247) Unassigned Balance $38,515,991
12 What Other Financial Reports Are Required? è In addition to the budget, the school districts financial records are audited on an annual basis by independent certified public accountants. è The District must file a report with the State Department of Education of all expenditures that occurred each fiscal year. è The District must also file interim financial reports twice a year with the Department of Education. These reports present the financial condition of the district and require a certification from the Board of Education as to whether all financial obligations for the fiscal year will be met.
13 What Other Financial Reports Are Required? (continued) è All specially funded programs have extensive reporting requirements that must be met. è Total expenditures related to pupil transportation must be filed annually. è All support cost expenditures must be reported.
14 What Is Encroachment? Encroachment is the expenditure of unrestricted funds in support of a restricted program. Funding for restricted programs such as special education and transportation is less than the expenditures to provide these mandated or court ordered services. The difference between the funding and the expenditures encroaches on the unrestricted funding.
15 Account Codes OBJECT Fund RESOURCE PROJECT YEAR GOAL FUNCTION Location District Code Unassigned The Account Classification Is Made Up Of Different Identifying Components
16 Account Code Definition Fund: The accounting systems of school districts are organized and operated on a fund basis. The BCSD has 12 funds. Resource: A resource code is assigned to identify the funding source of a program Project Year: Identifies those projects with a fiscal year that is different from the normal July-June fiscal year Goal: Defines an objective or set of objectives i.e., regular education, staff development, special education Function: Indicates the type of activity, i.e., instruction, administration, pupil services Object: Classifies expenditures according to the types of items purchased or service obtained. It classifies revenues by the general source and type of revenue Location: Identifies the site District Code: Further identifies the object code, i.e., substitutes
17 Hills School Certificated Teacher Instruction (purpose) K-12 Education (Objective) Current Year (0 always indicates current year) General Fund (fund paid from) Extra Time Account Classification Example 01 Title I (funding source)
18 If You Have Any Questions Or Need Additional Information Contact Sherry Gladin Director, Fiscal Services (661) or Natalie Sorhouet Assistant Director, Fiscal Services (661)