Budget Development

Kern CountySuperintendent of Schools

Division of Administration and Finance

What is a budget? Spending Plan

Critical Financial Management Tool

District Goals and Priorities Expressed in Dollars

Major Budget Variables Student Enrollment Student Attendance School Facilities Educational Funding/Revenues Program Expenditures Board Priorities

When is it due? Single Adoption

July 1st Dual Adoption

September 8th

What to file? Source – SACS software

Adopted Budget for all Funds Average Daily Attendance (Form A) Revenue Limit Summary (Form RL) Technical Review Checklist (Form TRC) Criteria and Standards Review (CS) Summary of Interfund Activities for all

funds (Form SIAAB)

What to file? SACS (con’t)

Certification of Budget Adoption with required 2 signatures

Multi-Year Projection SACS School Services Excel Spreadsheet Include detailed assumptions

What we look for… Budget Review checklist

Certification page submitted and signed Summaries of interfund activities agree with

transfer detail in all funds Form A: Estimated Actuals agree with school

district attendance reports and budget ADA agrees with form RL

What we look for… General Fund Review: Actuals and Budget

Verify that summary/detail totals agree Verify that the restricted columns on page 2,

line F, are zero or positive Verify that any contributions to restricted

programs were entered on the detail pages and agree with the summary page

Verify that the ending balance for the prior fiscal year, line F2, equals the beginning balance for new fiscal year line F1a

What we look for… General Fund Review: Actuals and Budget

Verify that the current year beginning balance, line F1a, equals the ending balance reported to the CDE last year

Verify that the components of ending balance equal line F2

Verify that apportionment, object 8011, agrees with the form RL

Verify that property tax accounts, 8021-8089, equal the amount listed on the form RL, line 25

What we look for… General Fund Review: Actuals and Budget

Verify that the PERS reductions are entered on page 4 (8092), offset on page 7 (38xx) and agrees with the form RL, line 21. Remember that the offset of expenditures may be divided up among the various funds

Verify that Special Ed, Continuing Ed, Community Day school ADA transfers are entered on page 4 (8091)

What we look for… General Fund Review: Actuals and Budget

Accounts 5710 and 7310 net to zero in columns C and F

Accounts 5750 and 7350 are offset with equal amounts in special funds

Revenue limit summary submitted and agrees with the general fund

Verify that SACS forms match budget reports (BDX110)

TRC check

Reasonable Budget Estimates

Reasonable Budget estimates for Revenue limit sources (ADA) Federal sources of revenue State categorical revenues Local sources of revenue Certificated salaries Classified salaries

Reasonable Budget Estimates

Reasonable Budget estimates for Employee benefits Books and supplies Services Capital Outlay Other Outgo Transfers Other sources/Uses

Criteria Standards review

Criteria Standards review ADA variance Deficit variance Minimum reserve level Fund balance trend Contingent liabilities Use of one-time resources Special Ed funding

Criteria Standards review

Criteria Standards review Multi-year commitments Contributions to restricted programs Retiree health and welfare liability Temp borrowing between funds Capital Projects Collective bargaining status

Multi-Year Projection

Multi year Projection Enrollment and ADA trends Health and Welfare % increases (unless

capped) COE billback Deficit spending projected in the two

out years? Does the projection satisfy the reserve

requirement in the next two out years?

Other Checks

All other funds Verify that summary/detail totals agree Verify that the ending balance for prior year, line F2,

equals the beginning balance for the new year, line F1a Verify that the new year beginning balance, line F1a,

equals the ending balance reported to the CDE last year Verify that the components of ending balance equal line

F2 Criteria and Standards submitted Verify that software matches budget reports

Estimating Actuals What is my ending balance going to

be? Unrestricted Restricted

Estimated ending balances in current year becomes the beginning balances in the budget year.

Revenue Limit – Form RL The form RL draws data from the

following sources: K12 (P2 for unaudited, P1 if the P2 is not yet

available) P2 School District Attendance report P2 J29 – Statement of Taxes RL Estimate provided by COE

Form RL – cont. The Form RL revenue limit ADA

should agree with Form A. The Form RL State and local

property taxes should agree with form 01.

PERS reduction (line 21) should agree with object 8092, and total object 3800-02 in all funds.

AB 1200 Guidelines Fiscal Monitoring Guidelines Sets Standards for Budget Review and

Monitoring County Office Powers and Responsibilities Criteria and Standards Greatly Enhances Fiduciary Management

Statewide

AB 1200 Guidelines Self Certification at Each Phase of Budget

cycle Budget Adoption Interim Report Periods

Certification Positive Qualified Negative

AB 1200 GuidelinesThree Major Certifications

Positive Will Complete Year with Positive Fund and Cash

Balance District is solvent and can meet obligations

Qualified May not Complete Year with positive fund and/or cash

balance Financial Indicators require scrutiny – modest

intervention Negative

Will not complete year with positive fund/cash balance Financial Indicators require aggressive action

AB 1200 Guidelines

County Office Reviews each District Certification May change the district certification if the

situation warrants Reports findings to the State Controller Various actions available to County Office

• Assign a fiscal advisor and/or• Budget Review Committee

Budgeting for Categoricals

The Keys – Single Adoption Estimating what the ending balance or

carryover will be for each categorical program

Knowing what new $ will be in the new year

SACS software requires that grant programs are balanced. Revenues must equal expenditures

Helpful Hints

Reduce program encroachments as much as possible

Consider charging programs and other funds an indirect cost rate to cover the cost of administration

Others?

Questions?

Questions? If you have any questions regarding budget

development please feel free to contact us for additional help. Steve Mattern 636-4691 Kim Baehr 636-4617 Maxx Garris 636-4641 Robert Harte 636-4689 Maria Rameriz 636-4494