Transcript REVIEW SESSION ONE - Southeast Missouri State University

REVIEW SESSION ONE
• When does the Fiscal Year begin each year?
• What are the five parts of a budget?
• There are four funds. Name them and provide
a brief explanation of each.
• What is ADA and how do you calculate regular
ADA and summer school ADA?
• What is EP?
REVIEW CONTINUED
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Define Operating Levy
Define Voluntary Rollback
Unadjusted Tax Rate
Adjusted Tax Rate
BUDGET TIMELINE
• January: Meet with Board of Education and Adm.
staff to establish priorities. You can actually begin
this process as early as November if needed.
• February: Preliminary budget estimates of
revenues and expenditures should be prepared
and discussed with the board of education.
• March: Make any preliminary expenditure
revisions based on discussions with BOE. Make
sure to include insurance increases, retirement
increase percentages and all other known
increases in expenditures.
BUDGET TIMELINE
• April: Update projections, if needed, and
present to the board of education.
• Should work with board to make sure have
established tentative tax levy for next fiscal
year.
• Begin working with staff and board on salary
and benefits.
BUDGET TIMELINE
• May/June: Complete end of year reports.
• June: Determine fund balances (ASBR). ASBR
must be submitted by midnight, August 15 to
DESE (Finance Section).
• Complete discussions on tax levy
• New budget must be adopted no later than
June 30th. Many districts adopt the existing
budget for operating purposes until all
revenues and expenditures are known.
BUDGET TIMELINE
• July/August: The statutory and constitutional
compliance checks for the district’s tax rate
ceiling for operations and the establishment of
the debt service levy need to be completed (State
Auditors Form). Board must have tax rate hearing
and adopt a tax rate, usually at August meeting.
• State Auditors forms need to be completed and
filed with the County Clerk of each county served
by your district. This needs to be completed no
later than September 1st.
REVENUE
(Refer to your budget)
• Local Revenue (5100): Major sources of local
revenue are from tax collections (current and
delinquent), Prop C. During good economic
times, interest can also be a good source of
local revenue.
• County Revenue (5200): Major source Railroad
and Utilities receipts. Another good source is
fines and forfeitures.
REVENUE
• STATE (5300): Largest state revenue is “Basic
Formula” money. This amount varies from
school to school based on a variety of
variables. Other major state revenues are
Classroom Trust Fund, Career Ladder,
Transportation (this funding categorical
continues to be reduced).
• Federal (5400): Major sources are from Title
funds, IDEA, Food Service.
REVENUE
• There are other sources of revenue such as
Tuition from other districts, sale of real estate,
sale of buses, etc.
REVENUE PROJECTIONS
• When doing preliminary work on a budget you
should begin by calculating revenues.
• ALWAYS, ALWAYS, ALWAYS, have a copy of
your current budget at hand when working on
budget projections. You need to know if there
is a major difference from year to year and
you need to know WHY there is a major
difference.
REVENUE PROJECTIONS
• To project local revenue you will need to know
the amount of your proposed tax levy,
anticipated collection rate, and your assessed
valuation.
• To estimate your assessed valuation you may
want to contact your County Assessor.
REVENUE PROJECTIONS
• Example: Project a $3.10 Operating levy and a
$0.86 debt service levy =$3.96 total levy.
• Multiply $3.96 x Assessed Valuation then
divided this number by 100 and multiply by
your collection rate.
• Complete: Levy of $4.05, Assessed Valuation
of 80,000,000 and a collection rate of 90%.
REVENUE PROJECTIONS
• Your total anticipated local revenue should be
$2,916,000. This is a projection based on the
best information available.
• How do you determine your collection rate?
REVENUE PROJECTIONS
• Proposition C Revenue: Each month DESE sends
financial information to districts which includes
your monthly revenue from state and federal
dollars, and they also include information about
projections for things such as Prop C payments,
which is based on “EP”. This is also available to
review on the DESE web site.
• You simply multiply the dollar amount per EP
projected by DESE by your projected EP.
REVENUE PROJECTIONS
• County Revenue: The major source of county
revenue will be Railroad and Utilities. This is an
extremely complicated calculation, one most do
not attempt. Districts receive a one-time
payment in January. Amount based somewhat on
your levy, number of students, and bond issues in
all districts in the county. Generally, the amount
will be similar to the prior year.
• Fines/Forfeitures: It is impossible to calculate this
amount. Again, generally based on the prior year.
REVENUE PROJECTIONS
• State Revenues: The major state funds will come
through SB 287-School Foundation Formula. This
replaced SB 380 and is being phased in over a
seven year period. State aid is provided to
districts on a monthly basis. Each district will
receive dollars based on several different
variables. This will be discussed when we review
the formula calculation.
• Classroom Trust Fund: These dollars are allocated
as part of the formula and can be placed in any
Fund at the discretion of the board.
REVENUE PROJECTIONS
• The remaining large state appropriation is for
transportation. Again, there is a formula for
determining the amount districts receive and it is
based on number of students who ride the bus
and the total eligible miles traveled.
• Originally, the state planned to fund 75% of
allowable cost, however, that percentage was
reduced to about 47% last year, and will continue
to fall until the state appropriates more money
for transportation.
REVENUE PROJECTIONS
• Federal: It is difficult to make preliminary
revenue projections for federal programs as
the information constantly changes and is not
known until very late in the year. Work closely
with the Director of Federal Programs and
keep as current as possible.
• For all revenue projections, it is good practice
to review the three year comparison data in
the prior year budget.
REVENUE
• State Auditors Calculation: Review state
auditors tax levy calculation form.
• Estimate of Required Local Taxes form for
County Clerk. This form must be submitted
prior to September 1st. The County Clerk will
then file this with the State Auditors Office.
REVENUE
• Review SB 287 Foundation Formula.
• Major implications on formula:
1. ADA
2. Dollar Value Modifier
3. Free/Reduced numbers
4. Special Education numbers
5. Other
Session Three
• Our next session will focus on Expenditures
and the Annual Secretary of the Board Report
(ASBR).
• We will also discuss how to evaluate a budget
and Fund Transfers