1. Finances, Budgets and Purchasing
With Thanks and Credit to Maryanne Dempster, Former Budgeting and Accounting Manager, School District 17 and current Auditor with Province of New Brunswick

2. As Principal, you should:
Budget & Accounting
As Principal, you should:
Be prepared to wisely and confidently execute the financial aspects of being part of the school administration team.
Have an understanding of the Budget breakdown and accounting processes.
Have an understanding of the difference between the “Fiscal year” and the “School Year”.
Have an understanding of what school raised funds are and how to account for them.

3. Legal Foundations Federal Government New Brunswick Legislature
Department of Education
District Education Council
School District

4. Legal Documents Financial Administration Act Education Act
Crown Construction Act
Public Purchasing Act
Collective Agreements
District Education Council Policies
Department of Education Policies

5. Basic Funding Models
Provincial Funding from the Department of Education
Budget Guidelines
Professional Funding Norms
District Expenditure Plan
School-based Budgets
Open out DOE funding spreadsheet-yellow sheet in binder
Open Funding Norms and guidelines- blue sheets in binder
Professional Funding norms spreadsheet - Purple sheet in binder

6. Example of a School District Expenditure Plan
Teacher Salaries
Special Needs
School Based Budgets
School Support
Information Technology
Supplementary Educational Programs
Facilities
Transportation
DEC/PSSC
District Office
Employee Benefits
Total
54% 8% 3% 2% 1%
11% 5%
100%

7. Example of School Based Operating Budgets
Instructional materials, Equipment & photocopying
Telephones
Office Supplies
Library Materials
Curricular Trips
Healthy Minds
PSSC
PLEP (Positive Learning Environment) (District specific)
Instructional Resources
Teacher Working Condition Fund
Total School Based Budgets
36% 8% 2% 4% 5% 3%
23%
13%
100%

8. Funding Formula’s for school Based Budgets
Objective: an equitable and fair distribution of funds
Various factors are considered in the funding formulas
Pupil population, number of teachers, elementary vs. secondary, field trip distances
Details and calculations may be provided in “Fiscal Facts” memo

9. Site-based School Budgets
Regular Instruction:
Classroom Supplies & Furniture
Photocopying
Instructional Materials, Equipment & Repairs
School Administration Support:
Office Supplies & Telecommunications
Library Resources

10. Site-based School Budgets
Teachers’ Working Conditions Fund
Collective Agreement negotiated item (Schedule K)
Pre-approval of purchases/uses by Superintendent
Balances at March 31st carry forward
“Healthy Minds” Nutrition Program (changing in the next year)

11. Site-based School Budgets
PLEP (Positive Learning Env’t & Tutor Suppor; may be school based or may be district based)
Co- & Extra-Curricular Trips
PSSC
Parent School Support Committee
To be expended as per guidelines outlined by District Education Council (DEC)
Instructional Resources
- Only approved resources can be purchased unless permission is obtained by the Superintendent.

12. School-to-pay Technically, funds are “Donations” to the Crown
PROCEDURE
School makes the purchase (using the Purchase card or requisition),
District pays the invoice to the vendor (requisition) or the Bank of Montreal pays the vendor (Purchase card).
School sends in cheque to District Office to cover the purchase (including freight, excluding HST)

13. School-to-Pay
WHY?
Save the HST on purchases (i.e. Playground equipment, Hockey Team jerseys, etc.)
Same purchasing procedures and guidelines apply to these purchases
Access to Government Contracts of Supply and Standing Offers
Benefit of tendering process through Dept Supply and Services
Biggest bang for the buck!
Balances at March 31st carry forward
spend your budgets first

14. Expectations It is expected that :
Site-based school budgets will be spent, but not overspent
Surpluses do NOT carry forward for Global Budgets
Deficits will be charged to School-to-Pay
Purchases will be made in accordance with the Public Purchasing Act
Expenditures will be made in accordance with the educational objectives of the funding
e.g. Library funds will be spent on library materials

15. Financial Reports
Summary and detail reports available on the WEB through the Principal or Secretary
Updated regularly
Information reflects processed transactions only
Processing is always weeks later than the purchase decision

16. Fiscal Facts
Sample Information Source for School Administrators; May be District Specific
Fiscal Facts #1 – Budget Allocation
Fiscal Facts #2 – Telecommunications Plan
Fiscal Facts #3 – Photocopier Usage
Fiscal Facts #4 – Healthy Minds
Fiscal Facts #5 – School Reserves
Fiscal Facts #6 – Instructional Resources
Open spreadsheets for fiscal facts backup

17. Teacher Working Condition Fund
In accordance with the guidelines in the NBTA collective agreement.
Does not have to be spent by March 31st.
Balance is rolled over into new fiscal period.
Prior approval from the superintendent is required for purchases outside the general list of approved items.

18. Audit, Fraud and Abuse
Principles for safeguarding school and public funds
Spending Authority
Recording and Reporting
Financial Administration Act
Public Purchasing Act

19. Risk Management
Be Aware
Be Proactive
Be Accountable

20. AWARE Roles and Responsibilities
Acts, Regs, Policies and procedures and collective agreements
Listen, look
Know issues, hot topics

21. PROACTIVE Plan with team Know issues, resources Share, communicate
Implement, monitor and redesign

22. ACCOUNTABLE
Inform
Monitor
Report
Investigate
Record
Follow up

23. You should know.. District policies and procedures
Fiscal year/school year
Zero balance at year end
Target dates for expenditures
Spending authority
Purchasing regulations

24. Prep Work for Preparing the School Budget
Examine history
Prioritize
Survey Staff
Review SIP
Seek assistance and training
Champagne taste on a school budget printout

25. Budgeting Fixed, variable expenses Use the guidelines provided
Review historical expenditures
Needs Assessment
Communicate

26. Accountable Present to staff
Purchase in accordance with Public Purchasing Act
Receive Goods
Excellent record keeping

27. School Raised Funds
Are funds that are generated at the school level for specific purposes.
Internal Controls to safeguard cash must be in place.
School Raised funds can be audited .
Banking software to track funds.