1. BUDGET SERVICES AND FINANCIAL PLANNING
BUDGET OVERVIEW
BUDGET SERVICES AND FINANCIAL PLANNING

2. AGENDA School Funding Unrestricted Restricted Accounting Structure
School Budgeting Process

3. School Funding Resources
Unrestricted
General Fund School Program
Targeted Student Population
Donations
Restricted
Specially Funded:
Categorical Programs
Special Education
Cafeteria

4. General Fund School Program
Unrestricted
General Fund School Program
(Program Code 13027)
The District allocates resources to schools in the form of positions using staffing ratios and other dollars based on projected enrollments.

5. General Fund School Program
Resources included in the General Fund Program are:
Principals and Assistant Principals
Teachers
Day to Day Substitutes
Assistant Principal, Secondary Counseling Services
Teacher Academic Differentials
Counselors and Registration Advisor Time
School Discretionary Program
Plant Managers and Building and Grounds Workers
Clerical Support
Financial Managers
Clerical Substitute Time
Temporary Personnel Account
Psychologist
Nurse
Secondary Restroom Attendants
Instructional Material
Custodial Supplies

6. General Guidelines
Budget Development allocations are based on E-Cast projections and Board Approved Staffing Ratios
After Norm Day school’s allocations are updated to reflect staffing ratios and resources under Norm Day enrollment counts.
Resources for Nurses and Psychologist will not be updated for Norm Day enrollment counts.
Schools May convert a vacant secondary teacher position into Auxiliary periods after Norm Day. The school must submit a completed Request for Auxiliary Teacher form to the Instructional Director and Personnel Specialist for approval.
After Norm Day, the Staffing and Resources report will be updated to reflect Norm Day enrollment.
Budget Services will open positions and/or allocate resources to schools that are entitled to additional positions and or resources after Norm Day.
Budget Services will also close positions and reduce resources, if Norm Day enrollment decreases. Instructional Material, General Supplies, Day to Day Substitutes and Temporary Personnel Account are subject to reductions.

7. Guidelines & Flexibility
Schools have the flexibility to implement budgets that meet their instructional and operational priorities of their school sites.
The flexibility for resources included are subject to State and Federal laws, collective bargaining unit agreements, Personnel Commission rules, Human Resources Division Rules & Policies, court orders and consent decrees.
If a school receives an augmentation for a particular resource, the school may not exercise flexibility over the same resource allocated as part of the General Fund.
Positions must be budgeted at the level of the assigned employee.
Advances in Salary Table Pay Scale will be calculated after Human Resources and Personnel Commission have processed changes in staff due to Norm Day. If the net cost of positions is projected to increase, funds will be provided.
If a school receives off-Norm resources, and also receives salary savings due to the actual cost settle-up, then the off-norm resources will be converted to program
Guidelines and Flexibility: Schools should review all their available finances, including categorical funds when implementing their budgets.
Schools have flexibility when building their budgets, however, schools must follow State and Federal laws, collective bargaining unit agreements, Personnel Commission Rules, Human Resources Division rules, court orders and consent decrees.
If schools choose to exercise flexibility to close positions, they will not be able to repurchase these positions from Specially Funded programs. For example, if a school closes an Office Technician position it was entitled to under the staffing ratios, it will not be able to fund this position from Categorical programs. This is to ensure that Categorical resources are used to supplement, not supplant the core program.
Any flexibility exercised over positions will only be valid for that fiscal year.

8. Accountability
Positions must be budgeted at the level of the assigned employee. Not budgeting at actual salary levels may result in overdrafts to your school’s budget.
Schools are responsible for any additional assignment costs related to positions that are purchased above the District’s staffing levels. For teachers, this includes the 10 substitute days, any differentials, and salary pay scale increases.
Schools that purchase positions above the district staffing level are responsible for all cost related to those positions. For example: If according to the Staffing and Resources report, the school is required to purchase 10 teachers and instead they purchase 11 teachers. The school is responsible for any costs related to the 11th teacher position, such as, day to day substitutes, differentials, and any salary increases.
The District will cover any salary increases for positions recommended on the Staffing and Resources report.
Schools should limit adjustments to the step and level of budgeted positions as this may result in overdrafts. For example: During budget development, there is a teacher position budgeted at step level 27/6 ($81,191). The school reduces the position to step/level 22/5 ($67,085) to transfer $14,106 to other resources. The school then hires a teacher at step/level 27/7 ($82,778). Budget Services will only cover the difference between step/level 27/6 and 27/7 ($1,587). The school will be held responsible for the difference between step/level 22/5 and 27/6 ($14,106) that was transferred to other resources.
If there is an overdraft in program 13027, it will be carried over to the next fiscal year.

9. Targeted Student Population (Program 10183)
Schools receive an allocation based on their unduplicated count of low-income, English Learner, and Foster students under Program 10183, Targeted Student Population.
Positions, services, and programs funded with Program must support the needs of the students that generated these resources.
Positions budgeted in the Targeted Student Program should be budgeted at their actual costs.
If schools close positions that are allocated to them in Program 13027, these positions cannot be re-purchased from the Targeted Student Program. This is to ensure that Targeted Student Program resources supplement, not supplant, the District’s core program.
Core services must be budgeted in the General Fund School Program before purchasing additional resources in the Targeted Student Program. These resources include Norm Register-Carrying teachers, Counselors, Nurses, Psychologists, and Clerical.

10. TSP Allocation TSP Program Allocation Rates (FY 2015-2016):
Funding Source
Description
Program Code
Poverty Level
Rate
Targeted Student Population
High Needs Students
10183
High Needs Students above 55%
Unduplicated Count
$400.00
$150.00
[Speaker should explain how schools get their TOTAL allocation: For example, # of identified students x rate]
High-needs student defined as Foster Youth, English Learners, and those who qualify for the Free and Reduced Lunch Program
Supplemental Allocation = Total Enrollment*Poverty Percentage* Rate
Concentration Allocation = Total Enrollment *Poverty Percentage above 55%*Rate
Total Allocation in Program = Supplemental Allocation + Concentration Allocation

11. Donations Donors may specify how the funds should be spent.
Donors or principals designate dollar amounts and activities to be supported when filling out the Donation Form.
They should not indicate “Principal’s Discretion” or “School Determined Needs.”
- See Bulletin No.5895 dated September 3, 2013

12. Restricted
Categorical Funds – resources are allocated to supplement the core instructional program. (i.e. must supplement and not supplant). Allocated on a per pupil rate based on student characteristics such as Low Income and English Language Learners.
Special Education Funds - resources are allocated based on student needs per Individual Education Plan (IEP).
Cafeteria Funds – resources are allocated to operate the District’s food service program. (Centrally controlled)

13. Title 1 Allocation Title I Rates (FY 2015-2016): Funding Source
Description
Program Code
Poverty Level
Rate
Title I
Socioeconomically Disadvantaged
7S046
65-100% %
$615.00
$467.00
[Speaker should explain how schools get their TOTAL allocation: For example, # of identified students x rate]
Students are deemed Socioeconomically Disadvantaged if they qualify for Free & Reduced Meals
Total Allocation = # of Participants * Rate

14. Norm Day Settle-Up – Specially Funded Programs
The following categories of schools will have their categorical allocations adjusted based on norm day data:
New Schools
Sending Schools
Reconfigured Schools (adding or losing a grade level)
If English Learner (EL) resources (Program 7S176) are allocated based on estimates, then all K-12 schools EL funds allocations will be adjusted based on norm day data.
New, Sending, and Reconfigured schools will have their categorical allocations adjusted based on norm day data.
If English Learner (EL) resources are allocated based on estimates, then all K-12 schools allocated EL funds will be adjusted based on norm day data.

15. Budget Structure
For time reporting and budgeting, we use Standardized Account Code Structure(SACS) to represent school locations and specific programs in SAP.

16. Cost Center is composed of 7 digits
Budget Structure
Cost Center
Cost Center is composed of 7 digits
Location Code
Cost Center beginning with a 1 followed by the current (4) digit Location Code and ending with (2) additional digits for sub-location designation, such as magnet centers and small learning communities
Magnet Cost Center
(subsequent numbers if more than one Magnet location)

17. Budget Structure SACS FUND
SACS FUND - Consist of a 3 digit SACS Fund number and a 4 digit SACS Resource number
FUND RESOURCE
[add “Resource” definition]
[add “Functional Area”, “Goal,” “Function”]

18. Budget Structure
Functional Area is composed of 3 groups of numbers
Goal is the first 4 digits of the functional area. It groups costs by population, setting, and/or educational mode
1110-Regular Education, K-12
4760-Bilingual
Function is the middle 4 digits of the functional area. It describes activities or services performed to accomplish one or more objectives in the Goal.
1000-Instruction
2700-Adminstration
Program Code is the last 5 digits of the functional area
General Programs start with
1XXXX
13027=General Fund
Categorical Funds and Grants start with
7XXXX
7S046=Title I Program

19. Commitment Item/General Ledger Account
Budget Structure
Commitment Item/General Ledger Account
Is composed of 6 digits
430010
The commitment item, general ledger are expenditure codes that represent all the things, whether goods or service, that may be purchased.

20. Budget Structure Commitment Item/General Ledger Account Categories
Certificated Salaries
Regular Teacher Salary
Supplemental Teacher Salary
Other Certificated Salary
Classified and Unclassified Salaries
Instructional Assistants
Office Personnel Salary
– Benefits
Health/Welfare-Certificated
Health/Welfare-Classified
– Other Expenditures/Goods
Instructional Material Account

21. Budget Structure Commitment Item/General Ledger Account Categories
– Other Expenditures/Goods (continued)
General Supplies (Equipment Unit cost up to $499)
Non-Capital Equipment (Unit cost from $500 to $4,999)
Instructional Material Account Adjustment/Potential Funding Variance
Pending Distribution
– Other Expenditures/Services
Travel/Conference Attendance
Curricular Trips
Capital
Buidings/Improvements to Buildings
Capitalized Equipment (Unit or aggregate cost greater than $5,000)
– Administrative Charges
Indirect Support
[Speaker should explain what Potential Funding Variance and Pending Distribution]

22. Budget Responsibilities of a Principal
The Principal is responsible for budget decisions made on behalf of the school. Principals are expected to engage their school community in the budget-building process.
Budget Planning & Development: the Principal leads the planning and development process.
Budget Maintenance: the Principal is responsible for the ongoing maintenance of the budget.
The Principal is responsible for budget decisions made on behalf of the school. Principals are expected to engage their school community in the budget-building process.
Support Staff: school site and Educational Service Center staff support the Principal.
Budget Planning & Development: the Principal leads the planning and development processes.
Budget Maintenance: the Principal is responsible for the ongoing maintenance of the budget.

23. School Budgeting Process
Planning and Assessing
.Analyze student achievement and school performance data
Adjust goals based on data findings
Develop instructional and operational strategies to achieve goals
Identify resources (such as personnel, time, materials, and dollars) needed to support strategies
Development
Prioritize investments
Align all budgeted funding sources, both restricted and unrestricted, to those priorities
Budget Planning & Development
Budget management includes monitoring, modification, time-reporting and purchasing.
Budget Management

24. School Budgeting Process
Budget Monitoring – the regular reviewing of budget balances
Schools are expected to spend within their allocations. If schools end the year with negative balances in programs that carryover, it will impact next Fiscal Year’s budget.
Budget Modification
Stakeholder engagement
Categorical program Budget Adjustments require School Site Council approval.
General Fund School Program (13027) Budget Adjustments should also be discussed with stakeholders.

25. Thank you!