Transcript ASBO & GFOA Budget Presentation and CAFR RequirementsTASBO 61st Annual Conference Welcome Jon Graswich, CPA Chief Financial Officer DeAnne Hatfield Business Services Director Northwest Independent School.

ASBO & GFOA
Budget Presentation
and
CAFR Requirements
2007
TASBO 61st Annual Conference
Welcome
Jon Graswich, CPA Chief Financial Officer
DeAnne Hatfield Business Services Director
Northwest Independent School District
[email protected] (817) 215-0025
[email protected] (817) 215-0041
www.nisdtx.org
Agenda
Introduction
Budget Presentation
Comprehensive Annual Financial Report
Summary
Questions and Answers
The Financial Cycle
The Financial Cycle starts with strategic planning and
ends with the audited financial statements.
The Financial Cycle
The seven steps of the Northwest ISD Financial Cycle are:
• Strategic Plan / Five-Year Forecast
Fall-January
• Budget Preparation
February - March
• Board Budget Review
April - May
• Budget Adoption
June
• Tax Rate Adoption
July - August
• Financial & Investment Reporting
July - June
• Audited Financial Statements
November
Association of School
Business Officials
International
Meritorious Budget Award
Meritorious Budget Award
The Meritorious Budget Awards Program
(MBA) uses examples of the latest
techniques from school business
administrators to build your skills for
developing, analyzing, and presenting your
school system budget.
2005-2006
Texas Recipients
Alief
Houston
Allen
Klein
Carrollton-Farmers Branch
Laredo
Conroe
Lewisville
Dallas
Northwest
Fort Bend
Rockwall
Government Finance
Officer’s Association
Distinguished Budget Presentation
Award
Distinguished Budget
Presentation Award
The Budget Awards Program is designed to
encourage governments to prepare budget
documents of the highest quality to meet the
needs of decision-makers and citizens.
2005-2006
Texas Recipients
Alief
Fort Bend
Austin
Houston
Big Spring
Laredo
Carrollton-Farmers Branch
Lewisville
Conroe
North East
Corpus Christi
Northwest
Dallas
United
What The Budget Document
Is
The budget document is a policy document, an operations guide, a
financial plan, and a communications medium designed to meet the
needs of decision-makers and citizens.
What The Budget Document
Ain’t
It is not a “magic” bullet.
What The Budget Document
Ain’t
It will not cause money to rain from the heavens.
The “Magic” Bullet
is
the Strategic Plan
The Northwest Independent School District approach to coping with
the combination of fast student growth in a restricted funding
environment with increasing academic standards has been to ensure
that the budget process is driven by the Strategic Plan. The Board of
Trustees and Administration review the Strategic Plan. The
Administration performs a detailed review of all revenues and
expenditures. The focus is on aligning the allocation of resources,
both personnel and financial, with the accomplishment of the goals
and objectives which are directly linked to the plan as described in the
budget document.
ASBO & GFOA
Criteria Checklist
Applicants rate their budget against the criteria using the checklist
and identify any adjustments that can be incorporated into the final
document. To receive these awards, a school entity must publish a
budget document as a policy document, an operations guide, a
financial plan, and a communications medium.
ASBO International’s
Meritorious Budget Award
Criteria Checklist
General Requirements
Introductory Section
Organizational Section
Financial Section
Informational Section
Government Finance
Officer’s Association
Distinguished Budget Presentation
Award
Criteria Guide
Policy Document
Financial Plan
Operations Guide
Communication Device
ASBO Criteria Checklist
General Requirements
The General Requirements relate to the overall budget document
but do not necessarily apply to a specific section of a document.
They set criteria concerning the document cover page, the
sectional division and table of contents, page numbering
information not included in the budget document, response to
previous review team comments, use of graphs and charts, and the
technical preparation of the document.
ASBO Criteria Checklist
Introductory Section
Introduces the reader to the document as a whole.
It highlights important information contained
in the budget. Users rely on this section to get
an overview. They want a quick overview –
a snapshot of what
they can expect
to find in the rest
of the document.
ASBO Criteria Checklist
Introductory Section
1.
2.
3.
A liftable executive summary
A copy of the MBA certificate
(if awarded in the preceding year)
A listing of school board members and top level
administrative personnel
Organizational Section
Provides the context and framework within which the
budget is developed and managed. The context for the
budget is substantially predicated on the type and level of
service to be provided to the students
of the community. The framework
also includes the District's
organizational and financial structure
as well as the controls that
direct and regulate the development
and administration of the budget.
Criteria Checklist
Organizational Section
1.
2.
3.
4.
5.
6.
7.
Explanation of the school entity
Significant budget and financial policies
Organizational Chart
Statement of the mission
Major goals and objectives
The operating and capital budget development process
The budget administration and management process
Financial Section
The heart of the school budget document.
The budget financial schedules
present the adopted budgets
for the District compared
with the results
of past budget plans
and with future projections.
Criteria Checklist
Financial Section
1.
2.
3.
4.
5.
6.
Scope and format of budget presentations (i.e., schedules0
Use of the pyramid approach in the presentation of budgets
Complete information presented including fund balances,
revenues, expenditures and other funding sources/uses
Inclusion of capital budgets and a list of major capital
projects
Description of capital spending impacts on the operating
budget
Current debt, legal debt limits and effects on current/future
budgets
School & Programs
Section
Provides the Mission Statements carried out by the school
or program, objective methods of results by school or
program, and includes the resources, both personnel and
dollars, allocated to the school or program to carry out the
stated mission.
School & Programs
Section
1. ASBO - Optional.
2. GFOA - Required:
• Display by Organizational Units or Programs.
• Describe activities, services or functions carried out.
• Provide objective methods to measure progress toward
accomplishing the government’s mission as well as specific
unit program goals and objectives.
Informational Section
Contains information on past and future budgets and
factors influencing the proposed budget. Puts the adopted
budget into context and it explains past budget decisions.
Criteria Checklist
Informational Section
1.
2.
3.
4.
5.
6.
Revenue Sources, Assumptions and Trends
Values of Taxable Properties
Property Tax rates and Collections
Analysis of Tax Burden
Comparison of Revenues and Expenditures
Budget Forecasts
Criteria Checklist
Informational Section
7.
8.
9.
10.
11.
12.
Student Enrollment History and Forecasts
Personnel Resource Allocations
Bond Amortization Schedules
Performance Measurements
Other Useful Information
A Glossary of Terms
ASBO
Application Materials
(1) Application Form
(4) Transmittal Letter
(4) Budget Document
(4) Criteria Location Checklist
(4) Responses to Last Year’s
Comments (if applicable)
(-) Fee ($350 - $900)
ASBO
Application Deadline
Submitted within 90 days of FINAL legal adoption date.
Adoption processes may include several dates.
• Budget Adoption in June.
• Tax Rate Adoption in August.
WWW.ASBOINTL.ORG
GFOA
Application Materials
(5) Application Form
(4) Transmittal Letter
(4) Budget Document
(5) Criteria Location Guide
(5) Responses to Last Year’s
Comments (If applicable)
(-) Fees ($165 - $630)
GFOA
Application Deadline
Two options:
• Proposed budget
• Within 90 days of submission to governing body.
• Adopted budget
• Within 90 days of adoption.
WWW.GFOA.ORG
What is a CAFR?
The Comprehensive Annual Financial
Report (CAFR) is a report that tells the
financial story of the school system through
narrative, financial statements, and
chart/graphs. The CAFR not only gives the
summary and detailed information for the
school year being reported, but also includes
information for the previous ten years.
ASBO International’s
Certificate of Excellence
in
Financial Reporting
Certificate of Excellence
in
Financial Reporting
The Certificate of Excellence in Financial
Reporting (COE) Program reviews the
accounting practices and reporting
procedures used by school districts in their
Comprehensive Annual Financial Reports
(CAFR), and enhances the award winners'
credibility among stakeholders.
2005
Texas Recipients
Independent School Districts
35
Educational Service Centers
2
Government Finance
Officer’s Association
Certificate of Achievement
for
Excellence in Financial Reporting
Certificate of Achievement for
Excellence in Financial Reporting
The Certificate Program, which was
established in 1945, is designed to recognize
and encourage excellence in financial
reporting by state and local governments.
2005 Results
Texas Recipients
Independent School Districts
50
Educational Service Centers
1
What is the mission of
ASBO’s COE Program?
To encourage and recognize excellence in
the preparation and issuance of school
system’s Comprehensive Annual Financial
Reports.
What is the application
deadline?
School systems must submit their application to
ASBO no later than six months after a school
system’s fiscal year end. For example,
Fiscal Year EndApplication Deadline
June 30
December 31
August 31
February 28
What is the fee to participate
in the program?
The application fee is based on the school system’s total revenue, all
funds. All school systems (regardless of ASBO International
membership) may apply. Below is the fee information:
Total Revenue, All Funds
Under $1 Million
$1 to $5 Million
$5 to $10 Million
$10 to $25 Million
$25 to $50 Million
$50 to $100 Million
$100 to $250 Million
ASBO Member
$350
$450
$550
$700
$800
$900
$1,000
How long does the review
process take?
The process takes approximately 4-5
months. As part of each review, reviewer
comments are provided back to the
submitting school district to be used in
preparation of subsequent CAFR’s.
What needs to be submitted to
be considered for the program?
The application materials include:
•
One copy of the completed application form
•
Three copies of the CAFR
•
Three copies of the school system’s responses to last year’s
comments (if applicable)
•
Three copies of the Self-Evaluation Worksheet (Self-Evaluation
worksheets are required for first time participants or if a school
system did not apply to the program for the previous year.)
•
Application Fee
What are the benefits/features
of the program?
•
All applicants receive constructive comments about their CAFR
from trained accounting professionals.
Those who receive the award also receive:
•
A prestigious award plaque
•
A printed award certificate to be used in the school system’s next
CAFR
•
Professional recognition in ASBO’s and ASBO affiliate publications
•
Media recognition
•
Strengthened budget planning and forecasting
What are the benefits/features
of the program?
The Certificate of Excellence in Financial Reporting Award is
recognized by:

Bond Rating Agencies

Securities Analysts

Underwriters

Educational, teacher, and citizen groups

Accounting Professionals
Self-Evaluation Worksheet
The guidelines of the program, contained in the
Self-Evaluation Worksheet provide a resource for
school business officials and auditors to use when
preparing a CAFR.
Submitting the self-evaluation worksheet is
optional for school systems that received the award
for the prior fiscal year. New applicants, past
conditional awards, and past denials are required to
complete and submit three copies of the worksheet.
I have a technical question. Can
ASBO help me?
Yes, please contact Michelle Williams at
703/ 708-7067 or email her at
[email protected]
and she will put you in touch with the
Certificate of Excellence in Financial
Reporting Technical Consultant, Gary
Heinfeld of Heinfeld & Meech Co., P.C.
My state doesn't require a
CAFR. Can I still participate?
Yes. In order to participate in the COE
program, you will need to convert your
state's required financial reporting format
into the CAFR format. Please contact
Michelle Williams at (703) 708-7067 for
more information.
Why Should My School
System Participate?
Credibility: Participation validates a school
system’s commitment to fiscal and financial
integrity and enhances its credibility with the
school board and community.
Confidence: Receiving the Certificate of
Excellence Award gives the superintendent and
school board confidence about their school system
and the business management staff.
Savings: A CAFR complies with disclosure
requirements by providing ninety percent of what is
needed for credit evaluation.
SUMMARY
Implementation
Board works with the Administration to develop
goal / objective guiding the development of the
budget document avoiding specific content.
• Goal: Northwest ISD will invest resources to ensure that
students, parents, and the community receive optimal
educational services.
• Objective: The information in the budget document and
CAFR will meet the requirements of ASBO and GFOA.
Receiving the Award
Receiving the Award
Awards are granted for only one year.
Notification and confidential comments.
A personalized award plaque and certificate.
Strongly recommend official Board presentation.
Local Media news release
Questions and Answers
Workshop Concluded