Budget Development
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Transcript of Budget Development
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Budget Development
Kern CountySuperintendent of Schools
Division of Administration and Finance
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What is a budget? Spending Plan
Critical Financial Management Tool
District Goals and Priorities Expressed in Dollars
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Major Budget Variables Student Enrollment Student Attendance School Facilities Educational Funding/Revenues Program Expenditures Board Priorities
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When is it due? Single Adoption
July 1st Dual Adoption
September 8th
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What to file? Source – SACS software
Adopted Budget for all Funds Average Daily Attendance (Form A) Revenue Limit Summary (Form RL) Technical Review Checklist (Form TRC) Criteria and Standards Review (CS) Summary of Interfund Activities for all
funds (Form SIAAB)
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What to file? SACS (con’t)
Certification of Budget Adoption with required 2 signatures
Multi-Year Projection SACS School Services Excel Spreadsheet Include detailed assumptions
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What we look for… Budget Review checklist
Certification page submitted and signed Summaries of interfund activities agree with
transfer detail in all funds Form A: Estimated Actuals agree with school
district attendance reports and budget ADA agrees with form RL
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What we look for… General Fund Review: Actuals and Budget
Verify that summary/detail totals agree Verify that the restricted columns on page 2,
line F, are zero or positive Verify that any contributions to restricted
programs were entered on the detail pages and agree with the summary page
Verify that the ending balance for the prior fiscal year, line F2, equals the beginning balance for new fiscal year line F1a
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What we look for… General Fund Review: Actuals and Budget
Verify that the current year beginning balance, line F1a, equals the ending balance reported to the CDE last year
Verify that the components of ending balance equal line F2
Verify that apportionment, object 8011, agrees with the form RL
Verify that property tax accounts, 8021-8089, equal the amount listed on the form RL, line 25
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What we look for… General Fund Review: Actuals and Budget
Verify that the PERS reductions are entered on page 4 (8092), offset on page 7 (38xx) and agrees with the form RL, line 21. Remember that the offset of expenditures may be divided up among the various funds
Verify that Special Ed, Continuing Ed, Community Day school ADA transfers are entered on page 4 (8091)
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What we look for… General Fund Review: Actuals and Budget
Accounts 5710 and 7310 net to zero in columns C and F
Accounts 5750 and 7350 are offset with equal amounts in special funds
Revenue limit summary submitted and agrees with the general fund
Verify that SACS forms match budget reports (BDX110)
TRC check
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Reasonable Budget Estimates
Reasonable Budget estimates for Revenue limit sources (ADA) Federal sources of revenue State categorical revenues Local sources of revenue Certificated salaries Classified salaries
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Reasonable Budget Estimates
Reasonable Budget estimates for Employee benefits Books and supplies Services Capital Outlay Other Outgo Transfers Other sources/Uses
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Criteria Standards review
Criteria Standards review ADA variance Deficit variance Minimum reserve level Fund balance trend Contingent liabilities Use of one-time resources Special Ed funding
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Criteria Standards review
Criteria Standards review Multi-year commitments Contributions to restricted programs Retiree health and welfare liability Temp borrowing between funds Capital Projects Collective bargaining status
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Multi-Year Projection
Multi year Projection Enrollment and ADA trends Health and Welfare % increases (unless
capped) COE billback Deficit spending projected in the two
out years? Does the projection satisfy the reserve
requirement in the next two out years?
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Other Checks
All other funds Verify that summary/detail totals agree Verify that the ending balance for prior year, line F2,
equals the beginning balance for the new year, line F1a Verify that the new year beginning balance, line F1a,
equals the ending balance reported to the CDE last year Verify that the components of ending balance equal line
F2 Criteria and Standards submitted Verify that software matches budget reports
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Estimating Actuals What is my ending balance going to
be? Unrestricted Restricted
Estimated ending balances in current year becomes the beginning balances in the budget year.
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Revenue Limit – Form RL The form RL draws data from the
following sources: K12 (P2 for unaudited, P1 if the P2 is not yet
available) P2 School District Attendance report P2 J29 – Statement of Taxes RL Estimate provided by COE
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Form RL – cont. The Form RL revenue limit ADA
should agree with Form A. The Form RL State and local
property taxes should agree with form 01.
PERS reduction (line 21) should agree with object 8092, and total object 3800-02 in all funds.
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AB 1200 Guidelines Fiscal Monitoring Guidelines Sets Standards for Budget Review and
Monitoring County Office Powers and Responsibilities Criteria and Standards Greatly Enhances Fiduciary Management
Statewide
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AB 1200 Guidelines Self Certification at Each Phase of Budget
cycle Budget Adoption Interim Report Periods
Certification Positive Qualified Negative
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AB 1200 GuidelinesThree Major Certifications
Positive Will Complete Year with Positive Fund and Cash
Balance District is solvent and can meet obligations
Qualified May not Complete Year with positive fund and/or cash
balance Financial Indicators require scrutiny – modest
intervention Negative
Will not complete year with positive fund/cash balance Financial Indicators require aggressive action
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AB 1200 Guidelines
County Office Reviews each District Certification May change the district certification if the
situation warrants Reports findings to the State Controller Various actions available to County Office
• Assign a fiscal advisor and/or• Budget Review Committee
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Budgeting for Categoricals
The Keys – Single Adoption Estimating what the ending balance or
carryover will be for each categorical program
Knowing what new $ will be in the new year
SACS software requires that grant programs are balanced. Revenues must equal expenditures
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Helpful Hints
Reduce program encroachments as much as possible
Consider charging programs and other funds an indirect cost rate to cover the cost of administration
Others?
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Questions?
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Questions? If you have any questions regarding budget
development please feel free to contact us for additional help. Steve Mattern 636-4691 Kim Baehr 636-4617 Maxx Garris 636-4641 Robert Harte 636-4689 Maria Rameriz 636-4494