BUSINESS OPERATIONS AND BUDGETING

October 1, 2016

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Todays agenda

◻ The budget process……⬜ Internal process and timelines⬜ State wide budget calendar⬜ Mid year budget reviews⬜ NJDOE budget document⬜ Presentations to the Board and public⬜ Ongoing budget oversight

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Internal process

◻ Extremely important to have a philosophy and to share it will all stakeholders⬜ Superintendent,

board, administrators, and support staff

⬜ BA must be the leader in building the budget…

◻ Business Administrators should document their policies and procedures and have a written “manual” that all people participating in the budget plan can utilize

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Budget Manual

A Mission Statement of the Dunellen Township Schools…..

B Budget Process Introduction………………………………………………. Objectives of the Budget Process………………………… Concept……………………………………………………. Decision Briefs……………………………………………..

D Preparing the Budget Submission Package…………………

E Staffing…………………………………………………………

F Budget Process Calendar……………………………………..

G 2014-2015 Budget Allocations………………………………..

H Additional Information………………………………………. * Supplemental Budget Forms (A, B, C) Budget Projection Instructions NJ Chart of Accounts

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Mid year budget reviews

◻ Usually scheduled in November – December◻ BA and Superintendent meet with County

Business Administrator to review current operations, emerging fiscal issues and budgetary constraints for the next years budget

◻ County sends out a worksheet (or 3) to complete along with a Q&A that is reviewed at the meeting

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Mid year County Review6

Other financial information 7

Other efficiency standards8

Cont…..9

Cont…..10

Additional supplemental questions

◻ In the review of the Taxpayer Guide to Educational Spending (TGES) indicators, where did you not meet the standards? What is your plan to remedy?

◻ What has your district done with respect to implementing the new teacher evaluation system? ◻ What has your district done with respect to implementing the new principal evaluation system? ◻ Priority and focus schools are required to develop a school improvement plan (SIP). All others

need to address any findings of deficiency noted in the new School Performance Report. How do you intend to address your district needs for the remainder of this year and for the 2014-2015 year?

◻ Where do you see your enrollment in the next 5 years? When was the last time that you prepared an enrollment projection?

◻ P.L. 2011, Chapter 78 compliance. Did you implement a Section 125, Flexible Spending Account for the option of using pre-tax dollars to satisfy required contributions to health benefits costs?

◻ Are you a member of the State Health Benefits Plan or if not, can you demonstrate your savings under the proposed amendments to the Chapter 78 law? What did budget for as an increase in health benefits for January 2014 and anticipate budgeting for 2014-2015?

◻ What is the status of your collective bargaining contract(s)? [Lag time for retroactive increases due to change in reporting to the Division of Pensions and Benefits, retroactive salary amounts.] How will you handle the new School Improvement Panel?

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Cont…..

◻ What are your plans for preparing and implements SGO's and SGP's? ◻ How has your district handled displaced students? Has your district been

affected this year adversely by the aftermath of Hurricane Sandy? What were the effects? How has the district handled the problems?

◻ What plans did the district make for the use of any excess surplus anticipated for the period ending June 2013-transfer the monies to reserve accounts prior to June 30th 2013, or apply its use in the 2014-2015 budget? If the funding formula is changed and the district faces a reduction for 2014-2015, will you be doing anything different for the remainder of 2013-2014 to increase fund balance as of June 30, 2014?

◻ Do you anticipate any significant staffing reductions or additions for 2014-2015? If so, professional or support staff and why?

◻ Does the district anticipate going forward with any major building/structural changes for 2014-2015, even without ROD funding?

◻ In developing the district's 2014-2015 budget, are there any other issues that may hinder a balanced and cohesive budget being presented to the populace?

◻ Any other comments or concerns.

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State of NJ Budget Calendar13

NJDOE State wide Q&A14

PREPARATION OF THE BUDGET

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2014 – 2015BUDGET TRAININGSoftware: https://homeroom.state.nj.us/

Guidance: http://www.state.nj.us/education/finance/fp/dwb.shtml

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REFERENCES

▪ Budget Guidelines and Electronic Data Collection (EDC) Manual❑ Separate documents from prior year are

combined into a single document for 2014-15.❑ Contains overview of information necessary to

utilize the web-based program, and detailed budget preparation information.

❑ County review checklist is moved to Appendix D of this document for 2014-15.

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OTHER BUDGET REFERENCES▪ 2014-15 Budget Statement - Other Items

Posted on Website❑ Sample Statement of Priorities❑ Tuition Revenue and Appropriation Worksheets

(Excel)❑ Budget Statement Defeated Budget Information

- Coming April 2014❑ Election Calendar❑ Clarification for Board Reorganization Meetings❑ School Election Guidance (Q&A)

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SOFTWARE LOGIN

▪ District sign on is controlled by the district’s Homeroom Administrator.▪ Multiple users may be logged in at the same time, including the county office.

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SAVE DATA

▪ You must use the SAVE DATA button on each screen to save your input to the database.

▪ If an on-screen edit message appears (in red text, at the top or bottom of the screen) then the data on that screen is not saved. The user must make changes to clear the edit and select the SAVE DATA button again.

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REVIEW OF THE BUDGET SOFTWARE

▪ General Comments - Entry in the System▪ Entering The District Budget❑ General Overview❑ Completing the “Budget” Tab❑ Completing the “Calculations” Tab❑ Completing the “Supporting Documentation”

Tab❑ Completing the “Enrollment” Tab❑ Completing the “Tax Levy Certification” Tab ❑ Completing the “Edit Report” ❑ Completing the “County Review and Approval”

Tab▪ User-Friendly Budget/Advertised Budget▪ Printing

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GENERAL COMMENTS - ENTRY IN THE SYSTEM

▪ System is compatible with the following internet browsers:❑ Internet Explorer versions 8, 9, 10 and 11❑ Google Chrome version 32.0.1700.41❑ Safari version 5.1.7 (7534.57.2)❑ Firefox version 26.0

▪ Follow specific order of completing screens to allow for correct processing of data. Some screens are dependent on data entry completed in other screens for the calculations to be final.

▪ Refer to manual section II-C for details.▪ System automatically logs you off if no activity for two

hours.

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HOME PAGE – MENU SELECTIONS

▪ Software is formatted as a series of tabs to access the various screens.

▪ Notices regarding updates to the software will be included on the “Home” screen.

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ENTERING THE DISTRICT BUDGET - GENERAL▪ 2012-13 actual amounts in the revenues and

appropriations sections are preloaded from the district-certified Audsum submission for that year.

▪ 2013-14 revised revenues and appropriations figures represent the current year budget with revisions as of February 1, 2014.

▪ Budget program preloads the 2013-14 data from certified budget including any adjustments for unliquidated PO’s that were open at the end of the prior audited year.

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ENTERING THE DISTRICT BUDGET - GENERAL (Cont’d)▪ Preloaded 2013-14 data must be updated to reflect

the appropriations for June 30, 2013 year-end encumbrances and any other revisions made between 7/1/13 and 2/1/14.

▪ June 30, 2013 Reserve for Encumbrances total from the Audsum (line 90010) is preloaded in the 2013-14 column on revenue line 710.

▪ Adjust the individual 2013-14 appropriation lines for the roll-over of the 6/30/13 encumbrances.

▪ Refer to manual section III-A

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COMPLETING THE “BUDGET” TAB

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COMPLETING THE “BUDGET” TAB - REVENUES

▪ Data entry for some revenue lines will be performed on the other screens, and will flow to the revenues screen (Recapitulation of Balances, Preschool Education Aid, and SEMI).

▪ When data entry is performed on another screen, the “Subtitle” column on the revenue screen notes the screen where data entry is performed.

▪ On a “Total” line or when data for the entire line is pulled from another screen, the line is highlighted in green, and no data entry is allowed.

▪ Refer to manual section III-C-i.

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COMPLETING THE “BUDGET” TAB – APPROPRIATIONS▪ Data entry for some appropriations lines are entered

on other screens and flow to the appropriations screen (Recapitulation of Balances, Capital Projects, and Preschool Education Aid).

▪ When data entry is performed on another screen, the “Subtitle” column on the appropriations screen notes the screen where data entry is performed.

▪ On a “Total” line or when data for the entire line is pulled from another screen, the line is highlighted in green, and no data entry is allowed.

▪ The “Explanation” column is only applicable to advertised lines.

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COMPLETING THE “BUDGET” TAB – APPROPRIATIONS (Cont’d)

▪ The account list has been divided with page-breaks.❑ Screen will originally load the first 200 lines

applicable to the district operating type.❑ Use the page number links at the bottom of the

screen to move between screens.❑ SAVE YOUR DATA BEFORE MOVING TO

THE NEXT PAGE.▪ Refer to manual section III-C-ii.

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COMPLETING THE “BUDGET” TAB – RECAPITULATION OF BALANCES▪ All districts must complete the Recapitulation of Balances.▪ Data entered on this screen will automatically create the

Advertised Recapitulation of Balances report incorporated in the newspaper file and User-Friendly Budget file.

▪ 2012-13 column is preloaded with the information certified by the district in the 2012-13 Audsum.

▪ Amounts entered into Recapitulation of Balances will flow to the revenues and appropriations screens.

▪ Amounts in middle column flow to the “Appropriation of Excess Surplus” calculation under the Budget tab.

▪ Amount of additional excess surplus calculated on the “Appropriations of Excess Surplus” screen flows to line 4 in the budget year column.

▪ Specific instructions in manual section III-C-iii.

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COMPLETING THE “BUDGET” TAB – RECAPITULATION OF BALANCES (Cont’d)

▪ All entries will be positive numbers and totals will carry from column to column.

▪ Amounts from 2013-14 original budget will preload into middle column.

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RECAPITULATION OF BALANCES – LEGAL RESERVE

▪ Excess surplus from audsum loads into line 14.▪ New line 15 added in 2014-15 for withdrawal from advertising

revenue reserve, for amounts of bus advertising revenue not spent on fuel in 2012-13.

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RECAPITULATION OF BALANCES – CAPITAL RESERVE

▪ Line 29 for designated deposit requires entry in the “Comments” column for description of the designation.

▪ New line 33 added in 2014-15 to reflect change in fund balance for transfer to Debt Service Fund.

▪ Max amount of local share must be entered on line 38.

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COMPLETING THE “BUDGET” TAB (Cont’d)

▪ Preschool Education Aid (manual section III-C-iv)❑ This screen is only to be completed by districts that

receive Preschool Education Aid.❑ Amounts to be entered are from the budgets approved

by Division of Early Childhood.❑ Entry on this screen flows to revenue and

appropriations.

▪ Capital Projects and Reserve (manual section III-C-v)❑ Capital Projects List - Advertised report with summary

level data.❑ Capital Project Detailed Budget – detail report by

function/object code, for each project budgeted. Entry on this screen flows to appropriations.

❑ Detail of Capital Project Fund Balance – detail of amount reported in Audsum as the fund balance as of 6/30/13.

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COMPLETING THE “BUDGET” TAB (Cont’d)

▪ Appropriation of Excess Surplus (manual section III-C-vi)❑ Screen is used to calculate the amount of excess general fund surplus

that must be appropriated in the 2014-15 budget .❑ Calculation is automatic except for lines A1, A2 and A3.❑ Additional excess flows to Recapitulation of Balances line 4.

▪ SEMI (manual section III-C-vii)❑ Screen used to calculate the amount of Medicaid revenue that must be

budgeted under the Special Education Medicaid Initiative (SEMI).❑ New lines in 2014-15 to show estimated number of students and county

office approval of waiver/alternate projections.

▪ School Based Budget & School Based Summary Report (III-C-viii)❑ Only applicable to those schools required to submit SBB

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COMPLETING THE “CALCULATIONS” TAB - SFRA Calculations

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COMPLETING THE “CALCULATIONS” TABSFRA Calculations (Cont’d)

▪ Report of District Status❑ Calculation is not available until release of State Aid.❑ Narrative is required if levy exceeds expected local levy.

▪ Minimum Tax Levy❑ Calculation is not available until release of State Aid.❑ Data entry is required only for Hurricane Sandy districts utilizing

CDL in 2014-15 (new this year). No entry for other districts.❑ GF Tax Levy (Rev. line 100) must be at least the amount on line

D.▪ PreBudget Year Levy and Enrollment Adjustment❑ No data entry required. All amounts are preloaded.❑ New line for Hurricane Sandy districts that utilized CDL or CDBG

in 2013-14. Amount is preloaded.❑ This is the calculation of Line A of the Tax Levy Cap screen.

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COMPLETING THE “CALCULATIONS” TABSFRA Calculations (Cont’d)

▪ Adjustment for Increases in Health Care Costs❑ Allowable adjustment cannot exceed the average

percentage increase SHBP as determined annually by the Division of Pensions and Benefits – preloaded on line E.

❑ Health benefits are defined as group health and prescription. If dental and vision are included in object 270, these amounts must be entered on the Health Care Cost calculation screen (lines A2 and B2).

❑ Support for increases in health care costs must be submitted to the county office for review. See manual section III-D-i-4 for support to be submitted (N.J.A.C. 6A:23A-11.4(c))

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COMPLETING THE “CALCULATIONS” TABSFRA Calculations (Cont’d)

▪ Deferred Pension Contributions ❑ Adjustment applies only to those districts which

deferred payment on the 2008-09 PERS pension liability.

❑ No data entry is required on this screen. Amounts draw from entry in Appropriations screen, object 248 lines.

▪ Adjustment for Responsibility Shifted From/To Another District or Entity ❑ Allows adjustment of tax levy to be increased or

decreased accordingly whenever the responsibility and associated cost of a school district activity is transferred to another school district or government entity.

❑ District must enter all data on these screens.

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COMPLETING THE “CALCULATIONS” TABSFRA Calculations (Cont’d)

▪ Cap Banking Eligibility ❑ A district may request use of “banked cap” only after

fully exhausting all eligible statutory spending authority in the budget year.

❑ Districts must use oldest year of bank first.❑ If using banked cap, general fund levy on revenue line

100 must equal tax levy cap in the budget year.❑ New column added in 2014-15, to reflect three-year

carry forward of banked amounts.❑ New line added in 2014-15 to reflect expiration of

2011-12 bank if not used in 2014-15.

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COMPLETING THE “CALCULATIONS” TABSFRA Calculations (Cont’d)

▪ Tax Levy Cap Calculation ❑ No data entry required on this screen.❑ Amounts are drawn from other SFRA Calculation

screens.❑ GF Tax Levy on revenue line 100 cannot exceed cap.

▪ Separate Proposal Summary❑ Separate Proposals to be presented to voters in April

or November must be included on this screen.❑ Two new columns in 2014-15:

1) Permanent or Budget Year Only.2) Election results for each question (for completion

after the election).

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COMPLETING THE “CALCULATIONS” TABEstimated Tuition Calculations

▪ Calculation of estimated tuition rates for both regular and special education students.

▪ The calculated rate for each program is the maximum rate that may be charged for that program by the receiving district.

▪ Middle column of appropriations must be completed before this screen.▪ Two selections under Estimated Tuition Calculations:

❑ Formulas for Selected Appropriations – calculates amounts used on two lines of Rate for All Programs screen:▪ Building Use Charge ▪ Allocated Costs

❑ Rate for All Programs▪ Provides the calculation of the estimated tuition rates.▪ Budget software automatically calculates the estimated costs per pupil

using the Average Daily Enrollment (ADE) from the School Register Summary as specified in N.J.A.C. 6A:23A-17.1.

▪ If district enters alternate enrollments, entry must be approved by county office.

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COMPLETING THE “CALCULATIONS” TABCSSD Maximum Permitted Net Budget▪ Report added to 2014-15 software. Applicable

to Special Services districts only.

▪ Not available until release of state aid.

▪ Calculates the maximum permitted net budget for the CSSD pursuant to N.J.S.A. 18A:46-31.

▪ Edit #100 checks to make sure district budget does not exceed maximum.

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SUPPORTING DOCUMENTATION MENU

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COMPLETING THE “SUPPORTING DOCUMENTATION” TAB

▪ Statement of Priorities and Core Curriculum Content Standards - All Districts

▪ Contract Information for Select Staff - All Districts▪ Per Pupil Costs - Regular, Vocational and CSSD Districts ▪ Administrative Cost Limit - Regular Districts ▪ Employee Benefits - All Districts ▪ Shared Services - All Districts ▪ Unusual Revenues and Appropriations - All Districts ▪ Equipment - All districts except ESC

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STATEMENT OF PRIORITIES/ CORE CURRICULUM CONTENT STANDARDSDistrict’s Initiatives and Priorities:▪ Use five categories of budget areas of focus:❑ Maintaining Our School System❑ Raising Standards and Expanding Opportunities❑ Building Professionalism ❑ Protecting Our Investment (Capital & Maintenance

Projects/Capital Reserve) ❑ Planning for the Future

▪ See sample posted on website at http://www.state.nj.us/education/finance/fp/dwb.shtml

▪ Data entry in 2014-15 increased to 4,000 characters per area.

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STATEMENT OF PRIORITIES/ CORE CURRICULUM CONTENT STANDARDSCore Curriculum Content Standards: ▪ Provide narrative information regarding new

programs or enhancements to existing programs that will ensure the implementation of the nine Core Curriculum Content Standards in the budget year.

▪ All areas are required to be completed – option to mark select content areas as “not applicable” has been removed in 2014-15.

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CONTRACT INFORMATION FOR SELECT STAFF

▪ Salary and benefit information required for the following: Superintendent; Assistant Superintendent(s); School Business Administrator; and any employee with an annual salary that exceeds $75,000 and is not in a collective bargaining unit.

▪ Three screens for completion. All must be completed.❑ Teacher Contract Screen, ❑ Employee List Screen,❑ Employee Benefit Detail Screen.

▪ Do not use the browser “BACK ARROW” on these screens, or the data will not refresh properly.

▪ Enter contract end date before contract begin date for each employee.

▪ Post-employment benefits must have explanation entered.▪ Refer to manual section III-E-ii.▪ Required for User-Friendly Budget.

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PER PUPIL COST CALCULATIONS

▪ Data entry for the 2013-14 and 2014-15 appropriations, and for the enrollment screen should be completed before running this report.

▪ Advertised Per Pupil Cost Calculations report is generated automatically by the budget program.

▪ Software includes a warning edit (#308) if the district’s 2013-14 budgeted per pupil legal costs, revised as of February 1, 2014, exceeds 130 percent of state average.

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ADMINISTRATIVE COST LIMIT

▪ Advertised per pupil administrative cost cannot exceed the lower of:❑ the district’s adjusted, as of February 1, per pupil

administrative cost for 2013-14 or; ❑ the 2014-15 per pupil administrative cost limit for

the district’s region, inflated (regional limit).

▪ Per pupil administrative regional limits for 2014-15 are $2,035 for the Northern region, $1,894 for the Central region, and $1,887 for the Southern region.

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OTHER SUPPORTING DOCUMENTATION

▪ Shared Services ❑ Enter any information relating to a shared service agreement on

this data entry screen.❑ Separate lines should be used for each service/agreement.❑ The same category may be selected multiple times.❑ Required for User-Friendly Budget.

▪ Unusual Revenues and Appropriations ❑ Summarize unusual revenues and appropriations and provide a

description of the circumstances. ❑ Required for User-Friendly Budget.

▪ Equipment ❑ Appropriations for 2014-15 equipment must be entered in the

appropriations screen before completing this screen.

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COMPLETING THE “ENROLLMENT” TAB

◻ No changes from prior year.◻ If an amount entered causes the resident enrollment calculation in

column H to be less than zero, the cell will not accept the data entry and will revert back to the last saved item in that cell.

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COMPLETING THE “TAX LEVY CERTIFICATION” TAB

▪ Not available until after release of State Aid.▪ Refer to manual section III-G for specific instructions for

completion.▪ Two selections on this tab:❑ A4F

▪ Data entry on this screen must be completed before Estimated Tax Rate Information report.

❑ Estimated Tax Rate Information▪ Report required for User-Friendly Budget.▪ Preloaded valuations are amounts received from Division

of Treasury.

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COMPLETING THE “EDIT REPORT” TAB

▪ Runs edit tests on the data entry in the budget software.

▪ All fatal edits (noted with “error” in the first column) must be cleared before a district will be able to submit the budget to the county office.

▪ Edits labeled as “warning” will not prevent a district from submitting a budget to the county office.

▪ A complete list of edits is included in the manual at Appendix B.

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COMPLETING THE “COUNTY REVIEW AND APPROVAL” TAB

▪ New layout in 2014-15. Added more boxes for different stages of the budget review. The boxes are spread across 3 screens:❑ For Advertising or Board of School Estimate (for all

districts)❑ After Advertising and Prior to Public Hearing, or After

BSE (if needed, for all districts)❑ Results of Public Hearing (for all districts with Public

Hearings)❑ For April Election Districts – Changes for Defeated

Budgets or any Separate Proposals❑ For November Election Districts – Changes for

Separate Proposals

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COMPLETING THE “COUNTY REVIEW AND APPROVAL” TAB (Cont’d)

▪ All districts must complete section 1, “For Advertising or Board of School Estimate”. ❑ For initial review, after fatal edits are cleared, district will

check the box “Ready for Review” on the “District” line in the “For Advertising or BSE” section.

▪ Districts may use the “Comments” box to provide any additional information they wish to communicate to the county office.

▪ District “Ready for Review” box blocks data entry ability in all other screens. County review lines block entry from District “Ready for Review” line.

▪ When the “For Advertising or BSE” section is completed with the ECS approval, a link will appear at the bottom of the screen to allow access to the next page.

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COMPLETING THE “COUNTY REVIEW AND APPROVAL” TAB (Cont’d)

▪ The history of the changes made on each page of this screen are saved in the “Status History” link in the top right corner of each screen.

▪ Each line of entry is made available when the line above is completed. (For example, the ECSBA review line is not available until district clicks “ready for review”. The ECS review line is not available until the ECSBA line has status “approved”).

▪ ECS or ECSBA may use the “changes needed” boxes to open up data entry for changes in each subsequent section.

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USER-FRIENDLY BUDGET▪ Not available until after release of State Aid.▪ UFB must be posted on the district website within 48 hours

after the public hearing. ▪ Posting on district website must be updated for any changes

made for municipal certification of the budget.▪ Posting must be kept on the district website the entire year,

until the next budget cycle.▪ User-friendly budget file contains the following reports:

Advertised Enrollments Advertised RevenuesAdvertised Appropriations Advertised Recap of BalancesPer Pupil Costs Unusual Revenues and AppropsShared Services Estimated Tax Rate InformationContract Information for Select Staff Advertised Blended Resource Statement (SBB districts only)

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ADVERTISED BUDGET FOR NEWSPAPERS

▪ Not available until after release of State Aid.▪ District must have ECS budget approval before

advertising the budget.▪ Advertised file for newspapers contains the following

reports: ❑ Advertised Enrollments ❑ Advertised Revenues ❑ Advertised Appropriations ❑ Advertised Recapitulation of Balances❑ Per Pupil Costs ❑ Capital Projects Summary ❑ Advertised Blended Resource Statement (SBB only)

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STATE AID

▪ Once state aid is released, the software will make available the user-friendly budget, certification of taxes, remaining SFRA calcs, and the option to prepare the advertised budget for newspapers.

▪ The update will change the program without overwriting any data that was previously keyed using the initial program.

▪ State aid revenue lines will be blocked from data entry at this time (except Preschool Education Aid).

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OTHER BUDGET INFORMATION

▪ Governor’s Address – State Aid is released within 48 hours after the address.

▪ Budgets are due to County Office by March 10 – Must be board-approved.

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ADDITIONAL DOCUMENTATION TO BE SUBMITTED WITH BUDGET

▪ Position Control Roster (reconciled to budget accounts)

▪ Board Resolution for Approval of Budget Submission

▪ If Requesting any Cap Adjustments (Enrollment, Health Care Costs, Use of Banked Cap, Responsibility Shift) must provide required documentation❑ See manual for detail of what is needed.

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PRESENTING THE BUDGET

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