preparing your budget to meet the asbo meritorious budget award criteria

Preparing Your Preparing Your Budget to Meet the Budget to Meet the ASBO Meritorious ASBO Meritorious

Budget Award Budget Award CriteriaCriteria

Illinois ASBO Annual Illinois ASBO Annual ConferenceConference

May 20, 2010May 20, 2010

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PresentersPresenters Barrington CUSD 220 – 847-842-3500Barrington CUSD 220 – 847-842-3500

Gary Frisch CPA – Chief Financial OfficerGary Frisch CPA – Chief Financial Officer

MBA Reviewer – ASBOMBA Reviewer – ASBO George Lingel George Lingel

PMA Financial Network, Inc. 630-657-PMA Financial Network, Inc. 630-657-64006400 Vladimir Dragosavljevic Vladimir Dragosavljevic

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MBA ProgramMBA Program

What is the MBA?What is the MBA? Best Standards in Best Standards in

the Industrythe Industry Feedback from Feedback from

Reviewers – ExpertsReviewers – Experts MBA Improves MBA Improves

Community Community PerceptionsPerceptions

Toot Your Own Toot Your Own HornHorn

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What’s in it for the What’s in it for the Business OfficialBusiness Official

Build Solid Skills Build Solid Skills Developing and Developing and

Analyzing BudgetsAnalyzing Budgets Preparing Budgets using Preparing Budgets using

State of the Art CriteriaState of the Art Criteria Feedback – Continuous Feedback – Continuous

ImprovementImprovement

RecognitionRecognition

CommunityCommunity Board Board SuperintendentSuperintendent Marketability Marketability

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What is in the MBA?What is in the MBA? Four SectionsFour Sections

Introductory SectionIntroductory Section Organizational SectionOrganizational Section Financial SectionFinancial Section Informational SectionInformational Section

Six Page Criteria Checklist: Six Page Criteria Checklist: http://www.asbointl.org/index.asp?bid=4415

Criteria Criteria What does an outstanding presentation need What does an outstanding presentation need

to have?to have?

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The MBA Criteria The MBA Criteria

Makes it relevantMakes it relevant Uses the best standards in the industryUses the best standards in the industry Shows relevance to the classroomShows relevance to the classroom Uses narrative, charts, graphs and tablesUses narrative, charts, graphs and tables Accommodates different levels of interest Accommodates different levels of interest

Executive Summary to Greater levels of DetailExecutive Summary to Greater levels of Detail

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Introductory SectionIntroductory Section

Is an executive summary of the Is an executive summary of the organizational, financial and organizational, financial and information sections.information sections.

It is meant to be a stand alone It is meant to be a stand alone document which tells the complete storydocument which tells the complete story

It tells the story in narrative, numerical It tells the story in narrative, numerical and graphical forms.and graphical forms.

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Organizational SectionOrganizational Section Information about your school districtInformation about your school district

Significant Financial and Budgetary Significant Financial and Budgetary PoliciesPolicies

Goals and Objectives of the Goals and Objectives of the OrganizationOrganization

Description of the Budget Process and Description of the Budget Process and the management of the Budget the management of the Budget

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Financial SectionFinancial Section Presentation of all Presentation of all

governmental fundsgovernmental funds

Use a Pyramid Approach Use a Pyramid Approach

Describe significant Describe significant revenue sources and revenue sources and significant expenditure significant expenditure categoriescategories

Describe District Goals Describe District Goals and Objectives that are and Objectives that are not metnot met

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Financial SectionFinancial Section A pyramid approach A pyramid approach

should be used: a summary should be used: a summary of all funds, followed by of all funds, followed by the presentation of the presentation of individual fundsindividual funds

Optional: The Optional: The presentation may be presentation may be followed by program, followed by program, location, and/or location, and/or administrative unit administrative unit budgetsbudgets

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Informational SectionInformational Section

Information on taxes and assessed Information on taxes and assessed valuationvaluation

The Budget’s effect on the individual The Budget’s effect on the individual taxpayertaxpayer

Three years of financial forecasts Three years of financial forecasts Student enrollmentStudent enrollment Personnel resource allocationPersonnel resource allocation Student performance measuresStudent performance measures

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Benefits of the MBABenefits of the MBA

Business Manager’s PerspectiveBusiness Manager’s Perspective You will become more informed on all aspects of You will become more informed on all aspects of

your Organization including instructional your Organization including instructional performanceperformance

You will be ready for any question from the public You will be ready for any question from the public You will have one document that contains You will have one document that contains

everything from financial forecasts to enrollment everything from financial forecasts to enrollment projections to staffing allocationsprojections to staffing allocations

You will have earned credibility with your Board You will have earned credibility with your Board and Community and Community

Recognition by ASBO and your peersRecognition by ASBO and your peers

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Benefits of an MBABenefits of an MBA Positively viewed by ratings agenciesPositively viewed by ratings agencies Standard and Poor’s Financial Standard and Poor’s Financial

Management Assessment (FMA) areas Management Assessment (FMA) areas of analysisof analysis Revenue and Expenditure AssumptionsRevenue and Expenditure Assumptions Budget Amendments and UpdatesBudget Amendments and Updates Long-term Financial PlanningLong-term Financial Planning Long-term Capital PlanningLong-term Capital Planning Investment Management PoliciesInvestment Management Policies Debt Management PoliciesDebt Management Policies Reserve and Liquidity PoliciesReserve and Liquidity Policies

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Invest in YourselfInvest in Yourself Your Document is Reviewed by a Certified Your Document is Reviewed by a Certified

MBA ReviewerMBA Reviewer

What does an MBA Reviewer look for?What does an MBA Reviewer look for? Introductory section – An Executive Summary Introductory section – An Executive Summary

“liftable”“liftable” Organization section – Significant Board PoliciesOrganization section – Significant Board Policies Financial section – Pyramid ApproachFinancial section – Pyramid Approach Information Section – Tax Information & Information Section – Tax Information &

ProjectionsProjections

Feedback – Constructive Criticism - meant Feedback – Constructive Criticism - meant to improve your budget for next year!to improve your budget for next year!

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Next Year SubmittalNext Year Submittal You must address the changes listed in the You must address the changes listed in the

MBA review letter from last year in a MBA review letter from last year in a separate letter.separate letter.

New reviewer will look at the MBA New reviewer will look at the MBA document to see if the suggested changes document to see if the suggested changes have been made or reasons why a change have been made or reasons why a change cannot be made.cannot be made.

A reviewer will not be allowed to evaluate A reviewer will not be allowed to evaluate budgets from within their own state. budgets from within their own state.

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Common PitfallsCommon Pitfalls

The Introductory section is not The Introductory section is not complete – It should tell the budget complete – It should tell the budget story without the need for the reader story without the need for the reader to look at the other sections.to look at the other sections.

Financial Section does not use the Financial Section does not use the pyramid approach.pyramid approach.

Beginning and Ending Fund Balances Beginning and Ending Fund Balances are missing. are missing.

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Reviewer TipsReviewer Tips

Use the MBA Criteria Checklist and the Use the MBA Criteria Checklist and the Corresponding MBA Criteria Narrative to Corresponding MBA Criteria Narrative to ensure you have met all the required ensure you have met all the required criteriacriteria

Use a separate letter to explain why one or Use a separate letter to explain why one or more of the criteria could not be metmore of the criteria could not be met

Proof read your document Proof read your document Use the same font through-out the Use the same font through-out the

documentdocument

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Improve Community Improve Community PerceptionsPerceptions

Demonstrating a Comprehensive Demonstrating a Comprehensive Fiscal Perspective Fiscal Perspective

Demonstrating Transparency Demonstrating Transparency

Demonstrating Long Range PlanningDemonstrating Long Range Planning

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Benefits from a Financial Benefits from a Financial PerspectivePerspective

Given the current limited market for Given the current limited market for bond insurance, underlying credit ratings bond insurance, underlying credit ratings have become much more important for have become much more important for districts issuing debtdistricts issuing debt

High Credit Scores can be linked to the High Credit Scores can be linked to the same criteria listed in the MBA.same criteria listed in the MBA. Strong Board Policies and Five Year Strong Board Policies and Five Year

ForecastingForecasting

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Facilities PlanFacilities Plan

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Financial Section Financial Section SamplesSamples

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Informational Section Informational Section SamplesSamples

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ISAT Performance History 1999 - 2007READING

Percent of District 220 Students Meeting and Exceeding State Standards

84

77

8485

81

8584 84 8485 8482

86 85 84

89

848788

83

8890 91 91

93 93 92

40

50

60

70

80

90

100

1999 2000 2001 2002 2003 2004 2005 2006 2007

Grade 3 Grade 5 Grade 8

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Final ThoughtsFinal Thoughts

Strive for ExcellenceStrive for Excellence Invest in Yourself Invest in Yourself Improve Community Perceptions Improve Community Perceptions

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Application ProcessApplication Process

Submissions are due 90 days after Submissions are due 90 days after budget adoptionbudget adoption Electronic or paper copies of the budgetElectronic or paper copies of the budget Application FormApplication Form Criteria ChecklistCriteria Checklist Fee – ASBO member discounts, sliding Fee – ASBO member discounts, sliding

scale based upon district sizescale based upon district size

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Application MentorsApplication Mentors

Gary Frisch - 847-842-3514 Gary Frisch - 847-842-3514 [email protected]

George Lingel -847-833-7899 George Lingel -847-833-7899 [email protected]

Vlad Dragosavljevic -630-657-6400 x Vlad Dragosavljevic -630-657-6400 x 6410 6410 [email protected]

QuestionsQuestions

And Discussion And Discussion

preparing your budget to meet the asbo meritorious budget award criteria

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