Budget Development 2012-13

Kern County

Superintendent 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 1, 2012

• Dual Adoption– September 8, 2012

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 SIAB)

What to file?

• SACS (con’t)– Certification of Budget Adoption (Form CB)– Health & Welfare/Workers’ Compensation

Certifications

What to file?

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

What we look for…

• 2012-13 Budget Review checklist– Certification pages submitted and signed

• CA, CB and CC Table of Contents

– Summaries of interfund activities agree with transfer detail in all funds

– Form A: Actuals agree with district’s J18/19 and budget ADA agrees with revenue estimate

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 2011-12, line F2, equals the beginning balance for 2012-13 line F1a

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

– Verify that the 2012-13 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 revenue summary

– Verify that property tax accounts, 8021-8089, equal the amount listed on the revenue limit summary, line 27

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 revenue limit summary, line 13. 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 2013-14 & 2014-15?

Other Checks• All other funds

– Verify that summary/detail totals agree

– Verify that the ending balance for 2011-12, line F2, equals the beginning balance for 2012-13, line F1a

– Verify that the 2001-02 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 J18/19– P2 J29 – Statement of Taxes

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 13, EDP 085) 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• Budget Review Committee• Appoint a fiscal expert

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?

Changes in SACS– See Handouts

FY 2012-13 Calendar

• Handout on the CDE’s due dates as well as Ed Code citiations

Questions?