School FinanceIntroduction

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“Line Item” ComponentsBudget ReportsBudget Adjustment Requests (BAR’s)Council Meeting ReportsOther Duties of the CouncilTips for Financial Oversight

LINE ITEMS

XXXXX . XXXX . XXXXX . XXXX . XXXXXX . XXXX . XXXX

Fund Function Object Program Location Job Class Data

28 DIGITS

What are line items?Fund Function Object Program Job class

11000 1000 51100 1010 1411Funds:11000 – State Equalization Guarantee – generated by # of Students, a grade level weighting factor and Unit values (dollar amount)14000 – Instructional Materials – textbooks, materials and supplies24106 – Special Education – generated by the number of students with special needs and the levels of service that is written into their IEP; flows through the Aztec School District27106 – Student Library Funds - from sale of 2010 GO Bonds at the state level27114 – NM Read to Lead K-3 – PED initiative to improve student reading skills26170 – Non-recurring vouchers awarded by the Attorney General as a result of a settlement with Microsoft. There is slightly over $7,000 left in this fund31200 – Lease reimbursement Grant – generated by the number of students enrolled on the previous year’s 40th day count multiplied by a set dollar value31700 – Small guaranteed funding per student; PLUS, new this year, our share of the property taxes collected from residential and business owners. Equipment/software for student use.

What are line items?

Fund Function Object Program Job class

11000 1000 51100 1010 1411

Functions:1000 –Instruction – includes all expenses that specifically involve instruction of students in the classroom2000 – Support Services – includes expenses incurred in the support of classroom instruction3100 – Food Services to students4000 – Facilities Acquisition and Construction

These are required reporting codes – additionally, under the 2000 and 4000, there are further breakdowns of expenditures to reflect exactly where those funds are going.

For instance: 2100 – attendance, counseling, health, speech; 2200 – library, testing, technology; 2300 – audit, council expenses; 2400 office of the principal, etc.

The PED requires that we report expenditures only to the second digit of the function code.

What are line items?

Fund Function Object Program Job class

11000 1000 51100 1010 1411

Object: (WHAT is being purchased)Describes the expenditure. For instance – salaries, supplies, small assets, software, construction, other contract services, etc.

Program: (WHO is benefiting from the purchase)General education students, special education students or no specific group of students

Job class: (What POSITION is being paid a salary)Teacher, teaching assistant, clerical, substitute for sick leave, substitute for professional development, etc.

Line items allow us to track expenditures for the purpose of budgeting and ensuring that funds are being expended in support of the goals and needs of the students of the school.

Budget Rollup Report

GL Account Description Budget YTDExpend Encumbrance Budget Bal

11000-1000-51100-0000-000000-0000-0000 SALARIES EXPENSE 522,889.00 1,187.50 511,780.54 9,920.96

11000-1000-51300-0000-000000-0000-0000

ADDITIONAL COMPENSATION 9,400.00 .00 .00 9,400.00

11000-1000-52111-0000-000000-0000-0000

EDUCATIONAL RETIREMENT 56,490.00 138.34 1,980.21 54,371.45

11000-1000-52112-0000-000000-0000-0000 ERA RETIREE HEALTH 6,304.00 15.44 159.14 6,129.42

11000-1000-52210-0000-000000-0000-0000 FICA PAYMENTS 30,063.00 73.63 1,020.42 28,968.95

11000-1000-52220-0000-000000-0000-0000 MEDICARE PAYMENTS 7,032.00 17.22 238.65 6,776.13

11000-1000-52311-0000-000000-0000-0000

HEALTH & MEDICAL PREMIUMS 83,241.00 .00 .00 83,241.00

11000-1000-52312-0000-000000-0000-0000 LIFE 702.00 1.36 15.14 685.50

11000-1000-52313-0000-000000-0000-0000 DENTAL 5,284.00 .00 .00 5,284.00

11000-1000-52314-0000-000000-0000-0000 VISION 827.00 .00 .00 827.00

11000-1000-52315-0000-000000-0000-0000 DISABILITY 71.00 .00 .00 71.00

11000-1000-52500-0000-000000-0000-0000 UNEMPLOYMENT 7,922.00 6,055.85 .00 1,866.15

Budget Adjustment Request (BAR)

BUDGET = PLAN FOR SPENDING

So what happens if, in our best planning efforts, we cannot foresee what line items we will actually need or how much we might need in a specific line item. When a line item does not have sufficient budget to support needed expenditures, then a Budget Adjustment Request must be submitted to the Council for approval. If the request is within the same function, it does not require PED approval – only Council approval.

This is often called a “Maintenance BAR”

PED Budget Adjustment Request

If we are requesting to move funds from one function to another, we must first obtain Council approval and then submit to the PED for their approval. PED has 30 days to provide approval of the request.

If additional funding becomes available or if we are notified of a decrease in funding, we are required to correct our budget through this process as well.

A BAR that is submitted to the PED for approval will look similar to this.

Governing Council Financial Documents

In your Council Packet you will see the Budget rollup report, both Revenue and Expenditure

Includes % Remaining Column to far right

Accounts Payable Check listing

Payroll Check listing

Bank Reconciliations

Bank Statements for all three accounts

Operational Account – revenue for all funds is deposited here

Accounts Payable Clearing (zero balance) Account – used to process checks written to pay vendors

Payroll Clearing Account – used to process all payroll expenses

Any maintenance or PED BAR’s being requested

Bank Documents

MOSAIC ACADEMY CHARTER CHECK LISTING

Bank ID: CB Bank Account: 0198780106 From: 8/1/2008

To: 8/31/2008

Bank Name: Accounts Payable Clearing

Number Date Payee Amount Voucher StatusCleared Check Type

1724 08/08/2008 AZTEC HARDWARE CO $54.00 1003Printed Expense

1725 08/08/2008 AZTEC MUN.SCH TRANSPORTATION $378.80 1003Printed Expense

1726 08/08/2008 BILL IRWIN $193.73 1003 PrintedExpense

1727 08/08/2008 CITY OF AZTEC $537.23 1003 PrintedExpense

1728 08/08/2008 HA ELECTRIC PLUS INC $2,160.69 1003Printed Expense

1729 08/08/2008 PUERTA DOOR & HARDWARE INC. $107.00 1003Printed Expense

1730 08/08/2008 SCHOOL SPECIALTY $12,049.35 1003 PrintedExpense

1731 08/08/2008 STONE MOUNTAIN FLOORING $228.22 1003Printed Expense

1732 08/08/2008 The Barnyard $150.00 1003 PrintedExpense

1733 08/08/2008 TNT $841.26 1003 PrintedExpense

1734 08/18/2008 ARID MECHANICAL, INC, DBA $229.37 1004Printed Expense

1735 08/18/2008 BODE ELIZABETH D.$275.00 1004 PrintedExpense

1736 08/18/2008 CITY OF AZTEC $3,731.48 1004 PrintedExpense

1737 08/18/2008 CRANE & SONS $9,233.00 1004 PrintedExpense

1738 08/18/2008 HA ELECTRIC PLUS INC $1,851.50 1004Printed Expense

1739 08/18/2008 J&T Distributing Co., Inc. $49.30 1004Printed Expense

1740 08/18/2008 KNIGHT, AMANDA $275.00 1004 PrintedExpense

1741 08/18/2008 SCHOOL SPECIALTY $1,983.60 1004 PrintedExpense

1742 08/18/2008 WILLIAMS SCOTSMAN INC. $1,251.16 1004Printed Expense

1743 08/19/2008 WILLIAMS SCOTSMAN INC. $7,462.84 1005Printed Expense

1744 Printed

Check Listing

Bank Statements

Bank Reconciliation

Bank Statements

The bank statements are now received electronically and transmitted digitally to the contracted Business Manager. This process allows us to reconcile our accounts much more efficiently and timely.

The Aztec Municipal School District Business Office also transmits our SEG payment electronically; which provides us with quicker access to the major source of our funding.

OTHER DUTIES OF THE COUNCIL

Serve on the Audit Committee Participate in the selection process for hiring an auditor

Meet with auditors

Gain an understanding of the audit process and the audit report itself

Serve on the Finance Committee Periodically report the financial stability of the Charter to the

full Council

Periodically report the efficiency of the organization to the full Council

Serve on the budget committee

Oh, No !!

This is a lot to be responsible for !!

TIPS FOR FINANCIAL OVERSIGHT

Financial Document

Check Listings

Bank Reconciliations

Budget Reports

Budget Adjustment Requests (BAR’s)

Missing check numbers, unfamiliar vendors

Pending transactions, cash availability

Deficit accounts; %

Charter goals

Watch For

ADDITIONAL THOUGHTS

Ask questions Question vendors on the check list that you don’t recognize

Question checks to individuals that are for large amounts

Question recurring checks to a particular individual – whether large or SMALL

Question movement of cash from one bank account to another

Question “stale” adjusting entries on the bank reconciliation

Question stale dated outstanding checks

Question how the BAR’s affect the accomplishment of Council goals

ADDITIONAL TIPS

Occasionally Ask us to show you the security available in the accounting

software that decreases the opportunity for fraud

Ask to see manual journal entries and the backup documentation

Ask to see documentation for movement of cash

Ask to see original request form for a particular purchase

Ask to see documentation of best obtainable price

Ask to see documentation that supports control over cash up to point of deposit

Ask to see documentation that supports control over a fundraising activity

Ask to see documentation that shows importance of safety during a field trip

Ask to see the original void check and backup for the void