Transcript 1997-98 BUDGET PRESENTATION

SESSION #5
September Tentative Outline
Teaching Goals for this session (building upon last
session):
 Provide CBOs with information on basic financial
reporting that will enable them to read and understand
financial reports.
 Provide CBOs with information on budgeting that will
enable them to put systems into place that will produce
reliable budget data for decision making purposes.
Per Ron Bennett – As a future CBO, your budget is a
PASS/FAIL situation. Our goal is to make sure you pass!
2
3
Tentative Outline
Friday night
5:00 to 5:30
WORKING DINNER (Bill)
5:30 to 7:00
Finishing Financial Reporting (Francie)
7:30 to 9:00
Budget Development (Bill)
Saturday
8:00 to 10:00
10:00 to 3:00
Medical Benefits (Terri Ezaki
Budget Development (Bill McGuire)
4
Introduction for Terri Ezaki
5
Schedule
2008-09 CBO Mentor Project
`
5
6
September 12 & 13
October 17 & 18
financial Reporting
(Francie)
Budget Development
(Bill M)
Building Relationships
with HR/Position
Control (Don Zimring)
7
November 21 & 22
5:00 to 5:30
5:30 to 7:30
7:30 to 9:30
Food Service
Presentations
8:00 TO 10:00
10:00 to 11:00
11:00 to 12:00
12:00 to 1:00
1:00 to 1:30
1:30 to 2:30
Medical Benefits (Teri
Ezaki)
Budget Development
(Bill M)
Annual Audit (John
Goodell)
Facilities A to Z (Eric
Hall)
Workers Compensation
(Terri Prichard)
Property & Liability
(Paula Tanquay-ASCIP)
Working Lunch,
Staffing a School
exercise, mid year
evaluations
evaluations until 6:00
6
November Symposium
see CASBO.org
Registration Deadline is November 6, 2008
CASBO Member Registration $450 (paid by SI&A for
CBO Mentor Project)
2008 CBO Symposium November 20-21, 2008
Newport Beach Hotel and Spa, Newport Beach, CA
Your responsibility:
Be there Thursday, Friday, Saturday (until 6:00 if you
can on Saturday)
Book your own hotel room
7
CBO Symposium
 Thursday and Friday
 Attend Symposium and spend all your spare time practicing
for your presentation on Friday night
 Friday
 Symposium lunch ends around 2:00
 2:00 to 3:00
Joel Montero meets with Mentors for
mid year evaluation
 3:00 to 4:00
Joel Montero meets with Participants for
mid year evaluation
 4:00 to 5:00
Free time
 5:00 to 9:00
Group Presentations
8
Mentor Discussion
Discuss with your mentor their tips for a
successful budget presentation.
What advice would they give you
regarding budget documents?
Budget presentations?
9
Mentor Discussion
What health and welfare benefits does your district offer?
Medical, dental, vision, life insurance, EAP, other?
What are the costs? Who are the providers?
Do you have a benefit cap? What does the contract
language say?
Talk to your mentor about caps on benefits and the various
ways in which they might work in contract language.
Bring to the class your contract language relative to benefit
caps. Be prepared to talk about your benefits costs and
benefit caps.
10
Mentor Discussion
Practice your opening interview question/answer with
your mentor.
“Please tell us about yourself, your education and
your experience, as it relates to this position.”
Time your response to be under five minutes.
11
ASSIGNMENTS
End of Year variance analysis
User Friendly Budget
Attend a JPA meeting (workers compensation/property &
liability/health and welfare).
And not due until November – but you need to attend a collective
bargaining session. If for some reason this is not possible, see
the instructors for alternatives.
And for the really early birds – get working on your resume – (due
in January) and get input from your mentor.
12
Two more Assignments

Prepare a board summary report of your district prior year actuals. This report should include:
 Spreadsheet summary of variances from last information told to board and final information at year
end with narrative explaining the variances
 Documents to look for:
 2008-09 Budget to board – find 2007-08 estimated actuals from this document
 2007-08 Actuals (September 15, 2008 document)
If you do not have a district, request your mentor’s assistance in finding a suitable district for analysis.
Finished assignment due – October 17, 2008 to submit electronically to instructors.
End of year variance analysis due to your mentor by September 30 for mentor review and input. The variance
analysis will include a narrative and a summary financial document. The template for the financial report
will be provided (will send at later date). Mentor review should be done and rewrites finalized by the
October meeting. Mentors are asked to pay particular attention to the narrative and provide input that
makes the document “board package ready.” Your rewritten assignment is due at the October meeting.
User Friendly BUDGET. CD provided. Your job is to complete the User Friendly Budget.
Complete all sections of UFB 6.2 for the District/COE of your choice. Review and discuss with your mentor
prior to the class. Be prepared to report out in TWO minutes and two minutes only what you learned about
budgeting in CA using UFB during dinner on October 17, 2008. Bring one copy to the class.
13
October Mentor Questions
 Be prepared to describe how position control works in your district. Discuss
this with your mentor and talk about what are the elements critical to position
control and what are the barriers to successful implementation.
 Ask your mentor about a time in their career where they had a strong working
relationship between HR and Business?
 Has your audit started? Who is the auditor? Talk to your mentor about the role
of the auditor and what attributes they feel are important in the selection of an
auditor. Bring a copy of your audit report (2006-07 audit) to this session and
discuss with your mentor the findings and recommendations.
 What are the most pressing issues for your district relative to facilities? What
are the barriers to your construction program? Talk to your mentor about what
they view as the most critical role of a CBO relative to facilities?
14
October Assignments
End of Year Variance analysis due – October 17, 2008 to
submit electronically .
User Friendly BUDGET. CD provided. Your job is to
complete the User Friendly Budget.
Complete all sections of UFB 6.2 for the District/COE of
your choice. Review and discuss with your mentor
prior to the class. Be prepared to report out in TWO
minutes and two minutes only what you learned
about budgeting in CA using UFB during dinner on
October 17, 2008. Bring one copy to the class.
15
October Practice Interview Question
Our district is wanting to have a bond election in order
to modernize and expand existing facilities.
As the CBO, with oversight of the facilities and a
member of the district leadership team, describe the
process we should be undertaking as we start the
bond election planning process.
16
Financial Reporting
Finally…We are finishing our segment on financial
reporting.
A little review and some more practice reading financial
statements.
And a discussion of deferred income and carryover and
how that makes your financial reports REALLY
CONFUSING.
17
CBO Leadership Role
Accurate Budget Data & Accurate Financial Reporting
 Dependent upon systems, systems, & more systems
 Assume sound budget development systems are in place
(another CBO mentor session topic)…the next step is tracking
revenue/expenditures to budget…which leads to financial
reporting.
 What systems are in place to ensure that transactions are
properly coded? Do you have an ongoing training program for
all staff (including school site staff involved in account coding).
 What systems are in place to ensure that transactions are
monitored relative to the budget? Do you have a
comprehensive Budget review/monitoring process?
18
CBO Leadership Role Year End Closing
 What systems are in place for accurate year end
closing procedures?
 Income – determination of what the income should be and
posting of appropriate receivables and payables
 Expenditures – ensuring that all expenditures are posted and
payables posted as appropriate.
 Determination of deferred income/carryover and other
restricted amounts
 What systems are in place for following up on year
end closing – monitoring those receivables and
payables to determine if they come true to
projections?
19
Basic Reporting Cycle
Preliminary Budget
July 1, 2008
 Note – typically no state budget yet
 Revise budget 45 days after State of CA budget
adoption if material revisions
First Interim
December 15, 2008
 Board approval by December 15 (for time period
ended October 31)
20
Basic Reporting Cycle
Second Interim
 Board approval by March 16, 2009 (for time period
ended January 31)
Third Interim (optional) (April to June 2009)
 Required if qualified
June update (optional)
 Most districts provide current year update with
next year budget but OK to use 2nd interim
21
Quick Reading of Financial Statements
 Your Director of Fiscal Services prepares a 1st
interim report for your review
 Where do you start your review?
Hint – Joel’s FAVORITE line




Sample Summary of SACS document attached
Compare unrestricted total from last report to next report
Compare restricted total from last report to next report
What are the differences?
Your group should take five minutes to compile your
questions.
22
2
b
c
d
3
Unrestricted
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
e
f
g
Adopted Budget
Restricted
h
Total
Unrestricted
Restricted
Total
Revenue Detail
Revenue Limit
Federal Revenue
Other State Revenue
Other Local Revenue
Total Revenue
22,547,098
250,812
2,086,406
297,000
25,181,316
850,000
2,401,954
5,035,166
350,575
8,637,695
23,397,098
2,652,766
7,121,572
647,575
33,819,011
22,547,098
250,812
2,086,406
297,000
25,181,316
850,000
2,721,187
5,201,994
358,051
9,131,232
23,397,098
2,971,999
7,288,400
655,051
34,312,548
Expenditure Detail
Certificated
Classified
Employee benefits
Books & Supplies
Service, Other Operating
Capital Outlay
Other Outgo
Direct Support/Indirect
Total Expenditures
13,587,220
2,767,638
5,250,950
487,468
1,863,078
8,000
110,179
(79,828)
23,994,705
4,095,988
2,506,541
1,957,225
970,594
225,184
329,506
611,369
79,828
10,776,235
17,683,208
5,274,179
7,208,175
1,458,062
2,088,262
337,506
721,548
34,770,940
13,605,469
2,799,238
5,357,419
474,200
1,832,589
15,140
110,179
(81,648)
24,112,586
4,064,391
2,594,432
1,983,831
1,661,078
324,115
287,784
611,369
81,648
11,608,648
17,669,860
5,393,670
7,341,250
2,135,278
2,156,704
302,924
721,548
35,721,234
1,186,611
(2,138,540)
(951,929)
1,068,730
(2,477,416)
(1,408,686)
77,000
165,000
(88,000)
77,000
(1,558,419)
(1,481,419)
(1,039,929)
(412,689)
Excess/(Deficiency)
Other Financing Sources/uses
Transfers In
Transfers Out
Other Sources
Other Uses
Contributions
Total Other Sources/Uses
Net Inc/Dcr to Fund Balance
Beginning Balance
Audit Adjustment
Ending Balance
Components of Ending Fund Balance
Revolving Cash
Stores
Prepaid Expend.
Reserve for Economic Uncertainty
Other restricted
Undesignated
Total
% EUR
I
j
k
Restricted
Variance
g-d
Total Change
1st Interim
Unrestricted
Variance
f-c
2,739,770
1,914,884
4,654,654
2,739,770
1,914,884
4,654,654
18,249
31,600
106,469
(13,268)
(30,489)
7,140
(1,820)
117,881
(117,881)
520,121
520,121
402,240
-
1,924,841
1,689,884
3,614,725
601,836
2,327,081
830,887
3,157,968
402,240
319,233
166,828
7,476
493,537
(31,597)
87,891
26,606
690,484
98,931
(41,722)
1,820
832,413
(338,876)
(520,121)
(520,121)
(858,997)
(858,997)
10,000
26,000
1,040,587
2,038,378
43,003
3,157,968
2.90%
26,000
(7,491)
603,132
(219,401)
402,240
(650,162)
(650,162)
77,000
165,000
(2,078,540)
(2,001,540)
(814,929)
2,078,540
1,913,540
(225,000)
10,000
1,048,078
604,359
262,404
1,924,841
1,481,049
1,481,049
10,000
1,048,078
2,085,408
262,404
3,405,890
3.00%
165,000
1,558,419
1,393,419
(1,083,997)
(1,496,686)
10,000
26,000
1,040,587
1,207,491
43,003
2,327,081
77,000
165,000
(88,000)
830,887
830,887
-
319,233
166,828
7,476
493,537
(13,348)
119,491
133,075
677,216
68,442
(34,582)
950,294
(456,757)
(456,757)
(456,757)
26,000
(7,491)
(47,030)
(219,401)
(247,922)
23
Change in Unrestricted? Does it make sense?
“Diagramming the Change in Financial Position”
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Changes in Financial Position
Adopted
Budget
Unrestricted
Total Revenue
Transfers In
Total Income
25,181,316
77,000
25,258,316
Total Expenditures
Contributions to Rest
Total Other Sources/Uses
23,994,705
2,078,540
26,073,245
Net Inc/Dcr to Fund Balance
Beg. Balance (adjusted for actuals)
Ending Balance
Increase to
expend - came
from
undesignated
Change in
undesignated
Reduction to maint
moved some
expenditure on
undesignated to
rest. side- savings
restricted
put in locally rest.
1st Interim
Unrestricted
Change
(814,929)
-
2,739,770
1,924,841
-
25,181,316
77,000
25,258,316
24,112,586 117,881
1,558,419 (520,121)
25,671,005 (402,240)
(412,689) 402,240
2,739,770
2,327,081 402,240
83,011
(83,011)
-
10,000
26,000
1,040,587
(7,491)
1,207,491 603,132
43,003 (193,401)
2,327,081 402,240
Components of Ending Fund Balance
Revolving Cash
10,000
Stores
26,000
Prepaid Expend.
Reserve/ Economic Uncertainty
1,048,078
Other restricted
604,359
Undesignated
236,404
Total
1,924,841
117,881
(520,121)
-
(7,491)
520,121
(117,881)
-
7,491
-
-
24
Change in Restricted – does it make sense?
Rest. Adopted
Budget
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Total Revenue
Transfers In
Total Income
Total Expenditures
transfer out
Contributions to Rest
Total Other Sources/Uses
Net Inc/Dcr to Fund Balance
Beg. Balance (adjusted for actuals)
Ending Balance
Restricted
8,637,695
1st Interim
Restricted
Changes in Financial position
Budget
Deferred
Income
Budget
Carryover
Reduce Maint
expenditure
493,537
8,637,695
10,776,235
165,000
(2,078,540)
8,862,695
493,537
858,997
Change
(520,121)
493,537
493,537
832,413
(225,000)
(1,083,997)
1,914,884
1,689,884
1,914,884
830,887
520,121
1,352,534
(858,997)
(858,997)
830,887
830,887
(858,997)
(858,997)
Components of Ending Fund Balance
Revolving Cash
Stores
Prepaid Expend.
Reserve/ Economic Uncertainty
Legally restricted
1,689,884
Undesignated
Total
1,689,884
520,121
9,131,232
9,131,232
11,608,648
165,000
(1,558,419)
10,215,229
(858,997)
-
-
25
Restricted
To read the restricted side of the financial
statement you must understand the treatment
of deferred income and restricted ending
balance “carryover”
26
Carryover Defined
Carryover is a term that applies to money
not spent in the current year.
Carryover can be for local sources of
revenue or state/ federal categorical funds
For categorical programs, carryover is
treated in two different ways
Grants are subject to deferred revenue.
Entitlements do not defer revenue but the
carryover is a restricted ending balance.
27
Note: $41,000 in
ending balance
to be spent next
year.
Note: $20,000
reduction in
ending balance.
To be counted as
income in next
year
28
Prior Year Carryover and Deferred Income incorporated in Current
Year First Interim Budget
Current Year
First Interim Budget NO
incorporating
Carryover Adjustments
carryover
1
2
3
4
5
District A has RL Income of
1,000,000
State Grant
100,000
Instructional Materials $
50,000
Local donation- future playground
Total Income
1,150,000
6
7
8
9
10
11
Expenditures:
General Fund Expenditure
1,000,000
State Grant
100,000
Instructional Materials Expenditures 50,000
Local contribution expenditure
Total Expenditures
1,150,000
20,000
40,000
1,000
61,000
1,000,000
120,000
90,000
1,000
1,211,000
11
Income less Expenditures
(41,000)
(41,000)
12
13
Updated Beg. Balance
Ending Balance
641,000
641,000
14
15
16
17
18
Restricted Balances:
State Grant
Instructional Materials
Restricted - Local Donations
Balance = Unrestricted
Total
40,000
1,000
600,000
641,000
-
20,000
1,000,000
120,000
50,000
20,000
1,170,000
SIP increased
by deferred
income
No change to Inst. Mat
or Local Income
State Grant expenditures now
match income available
641,000
600,000
(40,000)
(1,000)
(41,000)
600,000
600,000
Inst. Materials budget now
reflects $40,000 from restricted
ending balance
Donation from
restricted ending
balance reflected in
budget
29
Final Result – comparison of final last year data to this year’s updated First Interim
Prior Year Current Year
Final
Reported
Actuals
1
2
3
4
5
District A has RL Income of
State Grant
Instructional Materials $
Local donation- future playground
Total Income
First Interim
Variance
incorporating
carryover
6
7
8
9
10
11
1,000,000
80,000
50,000
1,000
1,131,000
Expenditures:
General Fund Expenditure
900,000
State Grant
80,000
Instructional Materials Expenditures
10,000
Local contribution expenditure
Total Expenditures
990,000
1,000,000
120,000
50,000
1,170,000
1,000,000
120,000
90,000
1,000
1,211,000
40,000
(1,000)
39,000
100,000
40,000
80,000
1,000
221,000
11
Income less Expenditures
141,000
(41,000) (182,000)
12
13
Beginning Balance
Ending Balance
500,000
641,000
641,000
600,000
141,000
(41,000)
14
15
16
17
18
Restricted Balances:
State Grant
Instructional Materials
Restricted - Local Donations
Balance = Unrestricted
Total
40,000
1,000
600,000
641,000
600,000
600,000
(40,000)
(1,000)
(41,000)
State grant
increased by
deferred
income
State grant expenditures now match income
available
3.45%
Inst. Materials budget now reflects $40,000
from restricted ending balance
22.32%
Donation from restricted
ending balance reflected
in budget
30
Problem:
During your board presentation of first
interim – someone asks why prior year State
Grant Income was $80,000 and this year it is
$120,000? We obviously had a $40,000
increase in State Grant income and can afford
now to hire two new aides.
Your Answer?
31
 We have an ongoing income source of $100,000 per
year
 Prior Year income was $100,000 but is reflected on
the books at $80,000 since $20,000 was unspent.
 Current Year income is $100,000 PLUS $20,000 in one
time money from the prior year.
 It is available for expenditure, but prudent budgeting
means that we allocate one time dollars for one time
uses
32
Problem:
An irate bargaining union member asks:

How can you have a 3.45% increase in
income and 22% increase in expenditures
($221,000 increase)? The board obviously
has money to spend on everything but
salaries for employees.
 Your Answer?
33
One Answer
 In order to properly compare financial data from one reporting
period to the next, you get the most accurate picture by
comparing unrestricted data.
 Unrestricted expenditures only increased $100,000
 Restricted data increases and decreases significantly based on
changes in categorical funding and by the impact of budgeting
deferred income and carryover.
2003-04
Unrest.
1
Revenue Limit Income
2
3
Expenditures
Income less Expenditures
Rest.
2004-05
Total
Unrest.
Change
Rest.
Total
1,000,000
131,000
1,131,000
1,000,000
170,000
900,000
100,000
90,000
41,000
990,000
141,000
1,000,000
-
211,000 1,211,000
(41,000)
(41,000)
4
5
Beginning Balance
Ending Balance
6
7
8
9
10
11
12
Ending Balance Detail
5% Reserve for Economic Uncertainty
Instructional Materials
Restricted - Local Donations
Locally Restricted
Unrestricted
Total
500,000
600,000
41,000
49,500
40,000
1,000
500,000
50,500
600,000
41,000
1,170,000
-
500,000
641,000
600,000
600,000
49,500
40,000
1,000
500,000
50,500
641,000
60,550
500,000
39,450
600,000
Change in
Unrest.
100,000
(100,000)
-
Change In
Rest
39,000
Total
Change
39,000
121,000 221,000
(82,000) (182,000)
-
-
41,000
-
641,000
600,000
100,000
-
41,000
(41,000)
141,000
(41,000)
11,050
-
(40,000)
(1,000)
11,050
(40,000)
(1,000)
-
60,550
500,000
39,450
600,000
(11,050)
-
(41,000)
(11,050)
(41,000)
34
Problem:
A board member asks why it is that they
adopted a balanced budget. Income =
Expenditures. Our first interim now shows
we are deficit spending by $41,000. We all
know that deficit spending is WRONG.
Therefore, how can we approve this budget?
 Your Answer?
35
One Answer
 The “true” operating deficit is still -0 Unrestricted income less unrestricted expenditure is
balanced
 The$41,000 negative income/expenditure variance
relates to the planned use of prior year restricted
monies
Current Year Budget
Unrest.
Rest.
Total
1
Revenue Limit Income
1,000,000
170,000
1,170,000
2
3
Expenditures
Income less Expenditures
1,000,000
-
211,000 1,211,000
(41,000)
(41,000)
-
4
5
Beginning Balance
Ending Balance
600,000
600,000
6
7
8
9
10
11
12
Ending Balance Detail
5% Reserve for Economic Uncertainty
Instructional Materials
Restricted - Local Donations
Locally Restricted
Unrestricted
Total
60,550
500,000
39,450
600,000
41,000
-
641,000
600,000
-
60,550
500,000
39,450
600,000
36
More Financial Review
The Year End Analysis Tool
Year End Analysis
How did our actuals compare to our June projection?
As year end closing occurs in
July/August, the CBO and Director of
Fiscal Services should be waiting with
bated breath for the results of
closing…answering that critical
question….How close to budget were
we?
37
Sample attached
What are the critical elements that
you see in the attached analysis?
38
June Budget Update to Board
3
Unrestricted
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
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29
30
31
32
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34
35
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40
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43
44
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Revenue Detail
Revenue Limit
Federal Revenue
Other State Revenue
Other Local Revenue
Total Revenue
Expenditure Detail
Certificated
Classified
Employee benefits
Books & Supplies
Service, Other Operating
Capital Outlay
Other Outgo
Direct Support/Indirect
Total Expenditures
Excess/(Deficiency)
Restricted
22,665,889
250,812
2,135,953
302,487
25,355,141
850,000
2,789,701
5,420,926
474,653
9,535,280
13,715,734
2,797,376
5,363,688
467,155
2,037,694
2,518
110,179
(78,965)
24,415,379
4,143,609
2,610,192
2,035,152
2,083,894
579,115
404,938
611,369
78,965
12,547,234
939,762
(3,011,954)
Other Financing Sources/uses
Transfers In
Transfers Out
Other Sources
Other Uses
Contributions
Total Other Sources/Uses
(1,613,983)
(1,971,983)
1,613,983
1,448,983
Net Inc/Dcr to Fund Balance
(1,032,221)
(1,562,971)
2,739,770
67,685
1,775,234
1,914,884
97,254
449,167
Beginning Balance
Audit Adjustment
Ending Balance
Components of Ending Fund Balance
Revolving Cash
Stores
Prepaid Expend.
Reserve for Economic Uncertainty
Other Designations
Undesignated
Total
% EUR
77,000
435,000
-
165,000
-
10,000
25,628
6,614
1,116,799
616,193
449,167
1,775,234
449,167
Actuals as of 6/30/04
Total
23,515,889
3,040,513
7,556,879
777,140
34,890,421
17,859,343
5,407,568
7,398,840
2,551,049
2,616,809
407,456
721,548
36,962,613
(2,072,192)
77,000
600,000
(523,000)
(2,595,192)
4,654,654
2,059,462
10,000
25,628
6,614
1,116,799
1,065,360
2,224,401
2.97%
Unrestricted
Restricted
22,676,200
239,132
1,998,917
526,405
25,440,654
954,393
2,404,357
5,195,346
474,831
9,028,927
13,626,953
2,873,480
5,230,846
409,288
2,029,477
1,319
110,179
(78,965)
24,202,577
4,116,119
2,368,098
1,899,771
1,172,881
465,312
135,376
606,539
78,965
10,843,061
1,238,077
(1,814,134)
Total
23,630,593
2,643,489
7,194,263
1,001,236
34,469,581
17,743,072
5,241,578
7,130,617
1,582,169
2,494,789
136,695
716,718
35,045,638
Unrestricted
Variance
10,311
(11,680)
(137,036)
223,918
85,513
(88,781)
76,104
(132,842)
(57,867)
(8,217)
(1,199)
(0)
(212,802)
(576,057)
74,411
884,625
(810,214)
298,315
(1,244,112)
(1,386,271)
890,062
2,739,770
67,685
2,665,296
1,914,884
97,254
768,026
4,654,654
164,939
3,433,321
10,000
22,609
313,048
1,077,908
333,225
908,506
2,665,296
768,026
74,411
609,680
(844,967)
(1,380,236)
(142,159)
274,945
844,967
570,022
768,026
10,000
22,609
313,048
1,077,908
1,101,251
908,506
3,433,322
3.00%
(2,589)
174,680
769,016
591,747
890,062
(3,019)
306,434
(38,891)
(282,968)
908,506
890,062
Restricted
variance
104,393
(385,344)
(225,580)
178
(506,353)
(27,490)
(242,094)
(135,381)
(911,013)
(113,803)
(269,562)
(4,830)
(1,704,173)
1,197,820
109,945
(769,016)
(878,961)
318,859
(0)
318,859
318,859
318,859
39
Systems Check
 Do you have a five year history that compares your
June budget estimate to end of year actuals?
 What does that history tell you?
 Focus on the unrestricted changes in your review.
 We expect to see restricted changes as we typically
budget income and matching expenditures and if we
don’t spend restricted funds, they are carried over.
 Are your salary and benefit projections on target?
 Is your unrestricted carryover significantly higher or
lower than expected? Can you analyze why?
40
Additional Information on Budgets,
Multi Year, Collective Bargaining
Disclosure
Elements of Financial Reports to Board
Financial Summary/Budget Document
 Locally developed format
 Contains Assumptions and Narrative
Multi-Year Projection
 State format or district developed
Board Certification
 Finding of Positive, Qualified, Negative
Official SACS forms (state required reporting format)
CASH Flow worksheets for first and 2nd interim
42
Another Reporting Requirement
Collective Bargaining Disclosure information
that goes to board
Must also go to county office
If qualified district, COE must review and
comment BEFORE board action
Requires Superintendent and CBO to certify
the district can afford the settlement
43
Multi-Year Projection
Know where the district will be financially in
current and next two few years
Basis for critical decision making
Identify potential deficits/encroachments
Enable district to provide ongoing educational
programs
Help develop negotiating strategies
Incorporate enrollment and staffing projections
Indicate assumptions
44
Multi-Year Projections
 Beware of:
Predicting terrible conditions that never occur
Overly conservative assumptions
Overly optimistic assumptions
Projections on unsound assumptions
45