Budget Process Fiscal Year 200910

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Budget ProcessFiscal Year 2009-10
Presented by the Finance Department December
2008
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Agenda

• 2008-09 Budget Summary
• Budget Issues
• Budget Development Process
• Budget Forms
• Allotment Formulas
• Budget Management Overview

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Handouts

• Departments
• Presentation
• Budget Calendar
• Forms
• Budget Responsibility Chart

• Schools
• Presentation
• Budget Calendar
• Forms
• Capital Outlay Reports
• Allotment Formulas

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2008-09 Operating Budget

• Current Operating Budget is 216 million
• County Appropriation - 65.7 (No Capital Outlay)
• Per Pupil Budget - 8,934

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2008-09 Capital Budget

• No County Appropriation for Capital Outlay
• Carryover Project Budgets 86.5 million
• E-rate - 362,000 For Facilities and Furniture
• Facilities Project Savings - 577,000 for new
  projects
• State Technology Fund - 707,000 for Technology
  Projects

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Budget Issues

• Reduction of State Local Revenue
• Two New Schools
• Salary Benefit Increases possible
• Current Year Plan
• Freezing vacant, non-critical positions
• Reduction of Workshop budgets by 10
• Reviewing all phases of NHCS operations to see
  where costs can be reduced.
• Identify and prioritize list of possible programs
  and or line items in the operating budget that
  may need to be reduced or eliminated.

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Budget Allocations

• Schools
• Funds allocated by formula
• Additional funds allocated based on need
• Budget line items ending with school number are
  usually allocated to schools
• Most salaries are budgeted centrally and
  allocated by position rather than dollar amount

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Budget Allocations

• Departments (Programs)
• Most program budgets continue from year to year
• Adjustments made for salary/benefit increases
• Other changes requested during the budget process
• This year we need to estimate the impact of a 5
  Budget Reduction on Central Office Program
  Budgets

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Budget Development Process

• The purpose of the budget process is
• To determine the best use of existing resources
• To identify additional resources needed to
  accomplish system goals
• No additional revenue projected for 2009-10

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Budget Development Process

• Process
• Budget Analysis
• Justification of Requests / Changes
• Prioritization
• Approval

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Budget Analysis

• Identify Strategies to accomplish School or
  Department Goals
• Identify Resources needed to implement those
  Strategies
• Evaluate Use of Current Resources
• Which resources can be redirected to accomplish
  goals?
• Which programs/services are not aligned or
  required?
• Identify areas for cost reduction

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Budget Request Procedures

• Budget Documentation - All budget information
  located on Finance Web Site under budget tab
• Budget Training power point file
• Budget Calendar
• Capital Outlay Forms
• Budget Summary Form (Schools)
• Budget Reduction Plan (Departments)
• Allotment formulas

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School Budget Information

• Simplified Process for 2009-10
• Process Focus
• Alignment of Current Resources with Strategies to
  meet School Goals
• Changes Include
• No Operating Requests
• Only submit changes to unfunded priorities for
  Capital
• Supplemental Resource Plan only required if
  school plans to use resources differently

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Capital Outlay Procedures

• Capital Procedures and listing of current
  unfunded requests in school folders
• Only submit new project requests or priority
  changes
• E-mail changes to the appropriate program
  director by January 6, 2009
• Prioritized Capital Outlay requests will be
  prepared by Operations and submitted to Senior
  Staff on February 2, 2009.

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What is Capital Outlay?

• Expenditures for acquiring fixed assets,
  including
• Land, existing buildings, renovation or major
  repairs, and reconstruction
• Furniture and Equipment
• Technology
• Include items in excess of 1,000
• Include items less than 1,000 if quantity causes
  total cost to exceed feasible operating purchase
• Vehicles

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School Budget Information

• Student Projections
• Student Support Services will release preliminary
  Student Projections in February
• Position Allocations
• Human Resources will release preliminary position
  allocations in May after Choice Process is
  complete.

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School Budget Information

• School Budget Summary
• One Page
• Uniform Format
• Summary Listing of Capital Priorities
• May attach one page of photos supporting capital
  projects
• Short Narrative explaining how school resources
  are aligned to school improvement Plan

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Supplemental Resource Plan

• Supplemental Resource Plans
• Budget changes for 2009-10
• Assume current funding level
• Supplemental Resources Includes
• 072 Improving Student Accountability
• 024 Disadvantaged Student Supplemental Funding
  (Priority Schools)
• 050 Title I School Plans Priority Funding
• 069 - At-Risk/Remediation Positions
• Local Positions for Magnet, Focus, and
  Alternative Schools

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School Request Procedures

• Submit requests as follows
• Save completed files on your computer named as
  follows
• School Summary (School Name).xls
• Supplemental (School Name).xls
• Email forms to Donna Rosser
• Due January 12th
• You will receive an email confirmation that
  request was received.

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Program Budgets

• Program Directors
• Submit a 5 Budget Reduction Plan for each
  program listed on the Budget Responsibility
  Chart.
• No expansion requests should be submitted
• Transfers within programs allowed, but net
  reduction should equal at least 5 of Program
  Total, excluding School Position Allocations
• Provide Impact of Potential Reduction on Programs
  and Services provided

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Program Request Procedures

• Submit to the appropriate Assistant
  Superintendent by email no later than January 12,
  with a copy to Finance
• Save completed files on your computer named as
  follows
• Budget Reduction (Program).xls
• Change to your program name

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Budget Resolution

• Next Years Budget Resolution will be determined
  as follows
• Local Amended Local Ending Budget, less
  one-time appropriations, plus changes approved by
  the Board.
• State and Federal will match Planning Allotments
• Line Items based on CY amended adjusted for
  changes approved during budget process.

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Budget Management Topics

• Responsibilities
• State and Federal Allocation Process
• Review Finance Web Site
• Chart of Accounts
• Allotment Policy Manual

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Budget Management Responsibilities

• Budget managers, principals and program directors
  assume the responsibility for
• Budget Development
• Grant Compliance
• Budget Management
• To ensure that all funds are expended in
  accordance with state and federal law, and in
  alignment with the goals of the school,
  department, and system.

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Budget Management Duties

• Budget Delegation
• While specific budget duties may be delegated,
  the overall responsibility for the funds
  allocated to a school or department remains with
  the budget manager.
• Budget Delegation Form on Finance web site should
  be completed and sent to Donna Rosser if you wish
  to delegate specific budget duties.

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Budget Management Duties

• Review budget reports on a monthly basis to
  ensure
• Funding is being expended in a timely manner
• The general ledger properly reflects activity as
  approved by the budget manager

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Budget Management Duties

• Approve disbursements
• Requisitions
• Check Requests
• Travel Reimbursements
• Invoices
• Manage Positions Allocated to your School or
  Department
• Request budget transfers as needed

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State Funding

• Allotments are distributed by the Department of
  Public Instruction based on formulas approved by
  the State Board of Education
• Three Types of Allotments
• Position
• Dollar
• Categorical

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State Position Allotments

• Positions allotted for a specific purpose
• Teachers
• Instructional Student Support
• School Administrators
• Paid based on State Salary Schedule, without
  limitation to specific dollar budget

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State Dollar Allotments

• Local systems can hire employees or purchase
  goods for a specific purpose, but must operate
  within the allotted dollar amount.
• Examples
• Teacher Assistant
• Central Office Administration
• Textbooks
• Classroom Materials/Supplies/Equipment

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State Categorical Allotments

• Used to fund all costs necessary to address the
  needs of a special population or service. The
  funds may be used to hire personnel, provide a
  service, or to purchase supplies and materials.
• Examples
• At Risk/Remediation
• Exceptional Children
• Transportation

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State Formulas

• Funds are allocated with various formulas such
  as
• Per of students in Average Daily Membership
  (ADM)
• per School or LEA
• of students eligible for free/reduced lunch
• Combination of base allotments per LEA with
  additional amount per ADM
• 1 position per set of ADM - such as
  instructional support

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State Formulas

• Based on School Performance - Incentive Funding
  Improving Student Accountability
• Amount per EC Headcount
• Transportation formula based on efficiency
• Federal Allotments are based on many of the
  formulas listed above as well as competitive
  grant awards.
• Noncontributory employee benefits are funded
  based on actual costs

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Carryover

• Most state programs must be expended by June 30
• Allowable Carryover of State At-Risk funding and
  Staff Development
• Carryover of School Technology funds and
  Textbooks expected to continue
• No local carryover of operating funds anticipated
  for 2009-10

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Year-End Issues

• Expenditures must be booked in the fiscal year
  that goods are received or services delivered
• Prepaid Expenditures
• Travel requests submitted for payment in the
  spring for travel after June 30 are booked as
  expense in the new year
• Accrued Expenditures
• Payments in the new year for goods/service
  received before July 1 are expended in the prior
  year (local funds) if possible.

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Local Funding

• Local Formulas
• Personnel Resource Allocation Formulas
• Elementary/Middle/High
• Non-Salary Allocation Formulas
• Local Formulas supplement State Formulas
• Special Allocations
• Through program specific state and local funding,
  we are able to provide additional resources as
  needed

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Local Formula Enhancements

• Teachers
• K-3 Teacher Assistants
• Technology Facilitators
• Instructional Student Support
• Counselors, Social Workers, Psychologists Media
  Specialists, and Nurses
• Custodians
• Clerical
• Assistant Principals

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Finance Web Site

• www.nhcs.k12.nc.us/finance/
• Staff Directory
• Memos Procedures
• Salary Schedules
• Budget Information
• Useful Links

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Helpful Links to State Finance Information

• State Uniform Chart of Accounts
• http//www.ncpublicschools.org/fbs/finance/reporti
  ng/
• State Allotment Policy Manual
• http//www.ncpublicschools.org/fbs/allotments/gene
  ral/