Transcript What is the MBA Program

Preparing Your Budget to
Meet the ASBO
Meritorious Budget
Award Criteria
Illinois ASBO Annual Conference
May 20, 2010
Presenters
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Barrington CUSD 220 – 847-842-3500
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MBA Reviewer – ASBO
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Gary Frisch CPA – Chief Financial Officer
George Lingel
PMA Financial Network, Inc. 630-657-6400
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Vladimir Dragosavljevic
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MBA Program
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What is the MBA?
Best Standards in the
Industry
Feedback from
Reviewers – Experts
MBA Improves
Community Perceptions
Toot Your Own Horn
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What’s in it for the Business Official
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Build Solid Skills
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Developing and
Analyzing Budgets
Preparing Budgets using
State of the Art Criteria
Feedback – Continuous
Improvement
Recognition
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Community
Board
Superintendent
Marketability
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What is in the MBA?
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Four Sections
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Introductory Section
Organizational Section
Financial Section
Informational Section
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Six Page Criteria Checklist:
http://www.asbointl.org/index.asp?bid=4415
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Criteria
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What does an outstanding presentation need to have?
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The MBA Criteria
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Makes it relevant
Uses the best standards in the industry
Shows relevance to the classroom
Uses narrative, charts, graphs and tables
Accommodates different levels of interest
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Executive Summary to Greater levels of Detail
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Introductory Section
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Is an executive summary of the organizational,
financial and information sections.
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It is meant to be a stand alone document which
tells the complete story
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It tells the story in narrative, numerical and
graphical forms.
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Organizational Section
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Information about your school district
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Significant Financial and Budgetary Policies
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Goals and Objectives of the Organization
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Description of the Budget Process and the
management of the Budget
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Financial Section
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Presentation of all
governmental funds
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Use a Pyramid Approach
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Describe significant revenue
sources and significant
expenditure categories
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Describe District Goals and
Objectives that are not met
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Financial Section
A pyramid approach should
be used: a summary of all
funds, followed by the
presentation of individual
funds
 Optional: The presentation
may be followed by program,
location, and/or
administrative unit budgets
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Informational Section
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Information on taxes and assessed valuation
The Budget’s effect on the individual taxpayer
Three years of financial forecasts
Student enrollment
Personnel resource allocation
Student performance measures
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Benefits of the MBA
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Business Manager’s Perspective
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You will become more informed on all aspects of your
Organization including instructional performance
You will be ready for any question from the public
You will have one document that contains everything from
financial forecasts to enrollment projections to staffing
allocations
You will have earned credibility with your Board and
Community
Recognition by ASBO and your peers
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Benefits of an MBA
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Positively viewed by ratings agencies
Standard and Poor’s Financial Management
Assessment (FMA) areas of analysis
Revenue and Expenditure Assumptions
 Budget Amendments and Updates
 Long-term Financial Planning
 Long-term Capital Planning
 Investment Management Policies
 Debt Management Policies
 Reserve and Liquidity Policies
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Invest in Yourself
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Your Document is Reviewed by a Certified MBA
Reviewer
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What does an MBA Reviewer look for?
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Introductory section – An Executive Summary “liftable”
Organization section – Significant Board Policies
Financial section – Pyramid Approach
Information Section – Tax Information & Projections
 Feedback – Constructive Criticism - meant to improve
your budget for next year!
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Next Year Submittal
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You must address the changes listed in the MBA
review letter from last year in a separate letter.
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New reviewer will look at the MBA document
to see if the suggested changes have been made
or reasons why a change cannot be made.
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A reviewer will not be allowed to evaluate
budgets from within their own state.
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Common Pitfalls
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The Introductory section is not complete – It
should tell the budget story without the need for
the reader to look at the other sections.
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Financial Section does not use the pyramid
approach.
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Beginning and Ending Fund Balances are
missing.
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Reviewer Tips
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Use the MBA Criteria Checklist and the
Corresponding MBA Criteria Narrative to
ensure you have met all the required criteria
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Use a separate letter to explain why one or more
of the criteria could not be met
Proof read your document
Use the same font through-out the document
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Improve Community Perceptions
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Demonstrating a Comprehensive Fiscal
Perspective
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Demonstrating Transparency
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Demonstrating Long Range Planning
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Benefits from a Financial Perspective
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Given the current limited market for bond
insurance, underlying credit ratings have become
much more important for districts issuing debt
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High Credit Scores can be linked to the same
criteria listed in the MBA.
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Strong Board Policies and Five Year Forecasting
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Facilities Plan
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Financial Section Samples
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Financial Section Samples
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Financial Section Samples
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Informational Section Samples
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Informational Section Samples
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Informational Section Samples
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Informational Section Samples
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Informational Section Samples
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Informational Section Samples
ISAT Performance History 1999 - 2007
READING
Percent of District 220 Students Meeting and Exceeding State Standards
1999
2000
2001
2002
2003
2004
2005
2006
2007
100
93
90
86
84 85 84 85
89 88
91
90
91 92
87 88
81
80
93
84 84 85 84 83
84 85 84
82
84
77
70
60
50
40
Grade 3
Grade 5
Grade 8
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Final Thoughts
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Strive for Excellence
Invest in Yourself
Improve Community Perceptions
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Application Process
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Submissions are due 90 days after budget
adoption
Electronic or paper copies of the budget
 Application Form
 Criteria Checklist
 Fee – ASBO member discounts, sliding scale based
upon district size
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Application Mentors
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Gary Frisch - 847-842-3514
[email protected]
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George Lingel -847-833-7899
[email protected]
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Vlad Dragosavljevic -630-657-6400 x 6410
[email protected]
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Questions
And Discussion