Budget Development AdministrationMonitoring Process

1
Budget Development Administration/Monitoring
Process

• An Interview with Associate Superintendent of
  Administrative Services Bill McGuire with Clovis
  Unified School District

2
The Presenters

• Martha Granados-Lemons, Raisin City
• Debra Haney, Kerman USD
• Pam Holland, Fresno COE
• Suzanne Johnson, Pacific Union SD
• Patrick Kraft, Clovis USD

3
Outline of Presentation

• Who is Bill McGuire?
• Facts about Clovis USD
• Budget Basics for Clovis USD
• How is the Budget Built?
• Top Ten Recommendations

4
Bill McGuire - Chief Business Official

• Associate Superintendent of Administrative
  Services
• Reports to Dr. Terry Bradley, District
  Superintendent
• Is supported by 2 Assistant Superintendents and 7
  Directors

5
Bill McGuire - Career Background

• Majored in Economics and Accounting at Central
  Washington University
• Started in the profession in 1981 as a walk-on
  football coach in Crescent City, California and
  ended up as the chief accountant and coached
  football
• Del Mar Single District County (COE and USD)
• Calaveras COE
• Calaveras USD Took over district in financial
  crisis

6
Bill McGuire - Career Background

• Merced City Schools recruited him because
  district was also in financial crisis cut 10
  of budget and corrected poor budgeting decisions
• 1996 Clovis USD (11 years so far) hired him as
  Assistant Superintendent of Business Services
• Promoted to Associate Superintendent of Business
  Services
• Currently Associate Superintendent of
  Administrative Services when Dr. Bradley took
  over as Superintendent four years ago

7
Facts About Clovis Unified

• 31 elementary schools including newest Bud Rank
  with one more scheduled to open in 2009
• 5 intermediate schools including newest Granite
  Ridge
• 5 high schools including newest Clovis North
• 2 community day schools (covering grades 4 12)
• 1 continuation high school
• 1 independent study school (covering grades 4
  12)
• 1 joint charter school with Fresno Unified - CART

8
Facts About Clovis Unified

• Projected enrollment for 2007-08 is 37,450
• Projected ADA for 2007-08 is 34,924
• The district is growing by an estimated 350
  students
• Growth is slowing from 600-700 per year over the
  last 20 years to 350 per year
• Loss of high school students is not being covered
  by a growth in elementary students
• Slow down in growth is hard to budget decline
  in expectations does not slow down even when the
  growth slows down

9
Facts About Clovis Unified

• Demographics approximately 37,000 enrollment
• Primarily Caucasian district
• Low free and reduced count

10
Size of the Budget

• Budgeted Revenue is 542,306,731 for all funds
• General Fund comprises 54
• Budgeted Expenditures are 621,655,788 for all
  funds
• General Fund comprises 48

11
Budget Development Instructions Timelines

• Round the numbers
• Development for budget year has two starting
  points
• First Wednesday in October for CBEDS
• October 31st because it is the best payroll
• Enrollment projections and staff projections to
  determine the cost of maintaining the current
  programs in the next year

12
Budget Development Instructions Timelines

• January Governors budget proposal provides some
  indication of how much will be received for
  Revenue Limit
• Match expected revenue against anticipated
  expenditures and determine if there will be a
  budget shortfall
• Preliminary budget workshop presented to the
  Board February
• Budget Standards Committee begins meeting in
  February

13
Budget Development Instructions Timelines

• Budget Direction Packet is distributed to
  school/site/departments in March
• Budget information is returned to Administration
  from school/site/departments in April
• Budget Standards Committee recommendations are
  presented to the Board in May
• Budget is made available to the public in June
• Public hearing is conducted and the budget is
  approved in June

14
Budget Development Instructions Timelines

• Adopted budget (45-Day Budget) is available for
  public inspection in August
• Budget workshop for adopted budget in August
• Budget process is an 18-month process
• Overlapping process working with multiple budgets
  at the same time
• Timeline document is very detailed and added to
  as problems arise in order to prevent the issue
  from repeating in the next year
• Different versions of the budget are created and
  stored forever for tracking purposes

15
SACS and the Budget

• Traditional format of SACS report is modified for
  easier reading by Board
• Traditional format given to the County office and
  the state
• There should be no surprises by the time the SACS
  report is printed
• Communication between business office, the budget
  standards committee and the board subcommittee

16
Budget Development - Policies

• No official board policies or administrative
  regulations
• Active board subcommittee for budget and finance
• 3 Board members sit on this committee
• District Office informs the committee on state
  changes that affect finances

17
Budget Development - Policies

• Budget Standards Committee
• Board authorized
• Committee meets every other Monday from February
  through May
• 25-27 members sit on this committee
• Board members
• Community Members
• Faculty Senate Members
• School site Representatives
• Department Representatives

18
Budget Assumptions

• Preliminary Budget Factors Worksheet is developed
• Growth Costs new school sites or materials for
  new students
• Unavoidable Costs utilities or retiree costs
• Employee Compensation attrition, longevity,
  step column
• Health and Welfare Changes
• Revenue Limit Increases
• Special Education Master Plan
• K-3 and 9th Grade CSR
• Interest Income
• Other

19
Budget Reductions or Enhancements

• Budget Standards Committee gives input on where
  savings can be achieved or how to spend surplus
• Those recommendations are based upon
• Business Services Department
• Faculty Senate members
• School Site representatives
• Various department heads
• Instructional Administrative Division
• Expanded Benefits Committee

20
What Style is used to Develop the Budget

• A blend of styles are used
• Centralized the district makes the overall
  decisions on how many positions and overall
  amount of funds each site will receive
• Decentralized the sites make decisions on who
  is going to do what and where they will put their
  dollars
• Categorical expenditure decisions are also
  decentralized

21
Staff Involvement in the Budget Process

• 6 people from the Business Services Office
• Associate Superintendent
• Assistant Superintendent of Business Services
  Director of Budget and Finance
• Senior Accountant
• 2 General Fund Fiscal Analysts
• Fiscal analysts for Adult, Child Development and
  Food Services and Campus Catering

22
Technology Utilized for Budget Development

• Bi-tech software internal program
• Not using Fresno COE system
• FCMAT study will be done to analyze districts
  position control system
• to determine how to better control 5,000 employees

23
Carryover

• Sites are generally allowed to carry over unspent
  funds to the following year
• Prevents spending money just for the sake of
  spending money
• Promotes planned spending
• Unintended consequence of sites carrying over
  large balances
• Some categorical funds may be taken back by the
  district for planned expenditures by the
  curriculum department

24
Variance Analysis

• Review variances from prior year in August
• Use original budget and compare to actuals
• Use audit report to analyze what went wrong
• Why did ending fund balance change be specific
• Enrollment to ADA analysis
• Updates to budget throughout year formally
  approved at interims, July 1 and 45 days after
  State approves budget

25
Communication During the Budget Process

• Controlled by the budget calendar
• Key personnel have the calendar
• Board is informed of the budget timeline
• Faculty Senate and CSEA participate with many
  committees where the information is shared
• Bill McGuire meets with certificated and
  classified representatives
• Meetings and communication with all stakeholders
  is a priority
• District-wide emails are sent to everyone after
  all board meetings

26
Top Ten Recommendations

• Communication between departments, sites, board
  members and the community with training so that
  all may follow the process
• Budget Standards Committee
• Budget Calendar
• Monthly budget monitoring and adjustments
• Budget revisions at each interim, including third
  interim and quarterly reports

27
Top Ten Recommendations

• Stay updated on current information
• Budget allocation worksheets for sites
• Careful projection of new revenues
• Track ADA for growth or decline and look for
  trends in attendance rates and enrollment
• Monitor expenditures with use of negative balance
  report