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Terence WashingtonFinancial and Operational Accountability Manager
Developing Your School’s Budget
State Charter SchoolsCommission of Georgia
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SCSC School Funding Overview
Fiscal Feasibility
ITEMS TO BE COVERED
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FUNDING OVERVIEW
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1.State
2.SCSC Supplemental Funding
3.Federal
3 TYPES OF FUNDING
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The Quality Basic Education Act was enacted into law by the 1985 session of the Georgia General Assembly.
The Act set out the provisions for educational funding for grades Kindergarten through twelve.
Pre-K is not funded through QBE.
STATE/QBE
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QBE is divided up into two partsAmounts based on the number and types of students (Grade
specific, Special Education, …)
Training and Experience (T&E) of Staff
QBE
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Georgia utilizes a state funding formula that is based on the full-time equivalent (FTE) student counts in nineteen instructional programs.
Cost components are identified for each program.
Programs are weighted to reflect estimated costs associated with each program.
STATE/QBE (CONT’D)
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Student Counts are submitted by each school district twice a year October March
Based on the collected FTE counts, a formula is used to calculate the amount of funding(3 Count)
The FTE count records the actual classes the students are attending for six segments of the school day.
FTEs are then multiplied by the QBE funding amount for each QBE program
This will yield the amount of QBE funds earned for students
Training and Experience is calculated separately and added to the student portion
QBE
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Components of the QBE Formula
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DIRECT INSTRUCTIONAL COSTS
Include salaries and benefits for Teachers, paraprofessionals (Kindergarten only), Subject
Specialists (Art, Music, Physical Education, Foreign Language),
Counselors, Technology Specialists.
Consumable Materials, Textbooks, Travel, and
Equipment Replacement.
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INDIRECT INSTRUCTIONAL COSTS
Funds for Central Administration.
Funds for School Administration.
Facility Maintenance and
Operations.
Funds for 20 Additional Days of Instruction.
Media• Media Specialist
salary and benefits• Operations costs
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There are 19 different QBE programs.
Six of these programs are for Exceptional Education students (Mild Resource, Moderate Resource, Moderate Self-Contained, Severe Self-Contained, Inclusion, and Gifted).
QBE is a weighted funded formula based upon cost differentials for students in each program.
PROGRAMS AND PROGRAM WEIGHTS
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Examples include:Grades 9-12 is the Base Unit Cost and carries a weight of 1.0000 and a
fully funded rate of $2,463.43.Kindergarten carries a weight of 1.6532.Middle School carries a weight of 1.1317. https://app3.doe.k12.ga.us/ows-
bin/owa/qbe_reports.public_menu?p_fy=2000
PROGRAMS AND PROGRAM WEIGHTS
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The formula provides salary funding for a T-4 teacher with 0 years of experience. $33,424 base
https://app3.doe.k12.ga.us/ows-bin/owa/qbe_reports.public_menu?p_fy=2000
T&E funds are provided to compensate for education and the difference between beginning and experienced teachers.
The information is obtained from the CPI (Certified Personnel Information) report submitted to GADOE each October.
TRAINING AND EXPERIENCE (T&E)
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SCSC Supplemental Funding
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Calculated by the Georgia Department of Education, Finance and Budget Office.
2 components: State funds equal to the average amount of local revenue and state equalization grant
funding for the five school districts with the lowest assessed valuation per student, and
The statewide average of total capital revenue per full-t ime equivalent student.
Calculation= (Average Total Revenue of the 5 school districts with the lowest assessed valuation – state funding of those districts –federal funding of those districts + state equalization grants of those districts) + the statewide average of capital revenue per FTE
SCSC SUPPLEMENTAL FUNDING
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Since FY 2013 the legislature has proposed budgets that deducts the equivalent of a LFMS deduction from State Charter Schools’ funding.
The LFMS deduction is taken only from the state charter supplement that is allocated to offset the lack of local dollars. The deduction amount is calculated from the average LFMS per FTE of the lowest five systems ranked by assessed valuation (tax digest) per weighted FTE count.
LOCAL FIVE MILL SHARE(LFMS)
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A fee of 2% is withheld from all amounts on the allotment sheet
Used only for funding of the Commission
COMMISSION FEE
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Due to the current economic conditions in Georgia an austerity reduction is included in the calculation of state funds earned by a school system.
The deduction is approximately 9.7% of state funds earned by a school system.
This deduction is identified on the allotment sheets as an amended formula adjustment.
AUSTERITY CUT
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What does this all look like?
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https://app3.doe.k12.ga.us/ows-bin/owa/qbe_reports.public_menu?p_fy=2000Web site used to access allotment sheets, monthly QBE Payment Advice, QBE funding formula information
FINANCIAL REVIEW WEB SITE
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Fiscal Feasibility
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Operational/Financial Plan
What is a reasonable budget/financial plan?How do we make accurate, conservative revenue estimates?
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REASONABLE FINANCIAL PLAN
Conservative revenue
estimatesBasic Internal
Controls
Adequate Cash Flow
Compliance with Charter School Rule• CFO
Requirements• Annual Audit• Facilities
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BASIC INTERNAL CONTROLS
Performance Reviews
Information Processing
ControlsPhysical Controls
Segregation of Duties
Authorization and Document Based Controls
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US GAO-Green Book Great resource for establishing and reviewing internal controls.
http://www.gao.gov/greenbook/overview
BASIC INTERNAL CONTROLS
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CFO REQUIREMENT
At the time you submit your petition you should have a highly qualified CFO in
mind
Name the person OR provide details of job qualifications and rigorous hiring process
List how their qualifications match state requirements
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CFO REQUIREMENT
State Requirements
Documented experience of ten or more years in the field of business and financial management
A baccalaureate or higher degree in business, accounting, or finance from an accredited college or university and a minimum of four years experience in a field related to business or finance; or
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FACILITIES
Make reasonable rent or mortgage estimates when a facility hasn’t been secured• Provide documentation to support your estimate
Provide all information requested on the application• Geographic region• Facility descriptions• Permits, Certificate of Occupancy and documents of
ownership/lease• Etc.
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COMMON BUDGET MISTAKES
Overestimating Funding
Underestimating Expenses
Including Competitive Grants
as a Guaranteed Source of Revenue
Budget Deficits w/o Deficit
Reduction PlanNegative Ending Cash Amounts
Fuzzy Assumptions
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USEFUL LINKS
• https://app3.doe.k12.ga.us/ows-bin/owa/fin_pack_revenue.entry_form
School System Revenues/Expenditures
• https://app3.doe.k12.ga.us/ows-bin/owa/qbe_reports.public_menu?p_fy=2000
QBE Reports
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?
Questions