Title: Budget and Finance: What Every NEW School Board Member Needs to Know Jennifer bergel, Loudoun County School Board member Leigh Burden, Assistant Superintendent Business
1Budget and Finance What Every NEW School Board
Member Needs to KnowJennifer bergel, Loudoun
County School Board member Leigh Burden,
Assistant Superintendent Business Finance
2Fiduciary Duty
- Legal authority
- Malfeasance
Who is minding the store?
3Fiduciary Duty
- Legal authority
- Malfeasance
VA Code 22.1-89 Management of funds Each
School Board shall manage and control the funds
made available to the School Boards for public
schools and may incur costs and expenses.
What this means The School Board determines how
the funds are to be spent. The local governing
body determines appropriation levels.
4Fiduciary Duty
- Legal Authority
- Malfeasance
- VA Code 22.1-91 Limitation on expenditures
- No school board shall expend or
- contract to expend, in any fiscal year, any sum
of money in excess of the funds available for
school purposes for that fiscal year . . . .
What this means The School Board can not exceed
the appropriation levels determined by the local
governing body.
5So, who IS minding the store?
- Superintendent
- CFO/Director of Finance/Assistant Superintendent
- School Board
6 7Budget
- Superintendents role
- School Board role
- Local governing body role
Who does whatwhen?
8ORIGIN OF WORD BudgetUsed VIDEO on Budget
from HOTFORWORDS.com
9ORIGIN OF WORD Budget
The origin of our word budget is the Latin
bulga, a little pouch or knapsack. The word
turned up in English in the fifteenth century,
having travelled via the French as leather bag
where housewives kept their money.
10Superintendents Role
- Development of needs-based budget
- Compensation decisions
- Date requirements
What LCPS does.
11School Board Role
- Sometimes direction to Superintendent on
priorities - Public hearings (formally advertised)
- Public input (community info)
- Submission to local governing body
What LCPS does.
12Local Governing Body Role
- Fiscal guidance?
- Appropriation lump sum or state category?
- Its all about relationships.
What LCPS does.
13Budget Development Key Players
- Board of Supervisors
- School Board
- Superintendent
- Senior Staff
- Department of Business and Financial Services
- School Administrators
- Parents and School Community
- Education Association
14Standard Budget Reports
- Budget reports
- Trend data
- Comparisons with previous year
- Explanations of changes cost of salaries
- Enrollment projections
- Peer comparisons
15FINANCE
16Finance
- School activity funds
- Finance committee
- School operating fund
- Where the money goes
- How to monitor? Financial reporting
17School Activity Funds
- Basic principles
- Funds used for purpose collected
- Projects shall contribute to educational
experience - Funds derived by student body used for student
body - Students encouraged to participate in management
- Funds managed with sound business practices
- Note no oversight responsibility of
PTAs/PTOs/Boosters
18Finance Committee
- Contracts/Procurement
- Virginia Public Procurement Act (VPPA)
- Sanctions significant
- School Board policy
- Competition thresholds
19Standard Finance Reports
- Monthly financial reports
- Reporting by state category
- Quarterly financial reports
- Expenditure and revenue summary
- Expenditure detail (by Dept, by Sub object)
20LCPS Monthly Report- State Category ex.
State Category Original Budget Revised
Budget Actual Balance Expended Operating
Fund Instruction 540,362,397 560,301,189 443,
090,286 117,210,903 79.08 Admin, Attend
Health 34,590,145 38,420,337 34,496,855 3,923,
482 89.79 Facilities 2,308,489 4,224,570 3,0
59,755 1,164,815 72.43 Operation
Maintenance 65,840,169 64,436,188 55,227,551 9
,208,636 85.71 Pupil Transportation 52,466,940
53,052,165 39,733,172 13,318,993 74.89 Tech
nology 25,277,522 30,838,772 22,709,099 8,129,
674 73.64 Debt Service Fund
Transfers 0 7,434,609 7,434,609 0 100.00 Fu
nd Subtotal 720,845,662 758,707,831 605,751,327
152,956,504 79.84 Food Service Fund Food
Services 24,034,272 24,034,272 18,318,973 5,71
5,299 76.22 TOTAL 744,879,934 782,742,103 6
24,070,300 158,671,803 79.73
21LCPS Quarterly Report Summary ex.
Expenditures FY11 Budget Expenditures Encumbrances Current Balance Spent Projection Balance
Salaries 443,907,086 283,244,196 0 160,662,890 64 149,830,464 10,832,426
Employee Benefits 173,175,217 122,025,112 0 51,150,105 70 47,980,520 3,169,585
Contractual Services 20,616,004 13,282,156 3,440,205 3,893,643 81 3,493,643 400,000
Internal Services 11,873,258 7,269,088 0 4,604,170 61 4,604,170 0
Utilities 16,236,799 8,340,677 14,400 7,881,722 51 5,261,722 2,620,000
Communication 3,145,404 1,932,485 5,476 1,207,443 62 1,147,443 60,000
Insurance 1,460,919 1,230,325 0 230,594 84 230,594 0
Materials, Supplies 26,103,487 15,871,987 1,654,404 8,577,095 67 8,577,095 0
Training and Mileage 1,820,412 1,016,703 30,253 773,456 58 583,456 190,000
Continuing Education 548,042 350,468 1,385 196,189 64 196,189 0
Leases Rentals 536,484 371,729 34,946 129,809 76 129,809 0
Ops Maintenance 8,500 -24,748 0 33,248 -291 33,248 0
Capital Outlay 1,843,271 342,180 69,984 1,431,107 22 1,431,107 0
Transfer Out 5,168,683 5,168,683 0 0 N/A 0 0
Total Expenditures 706,443,566 460,421,041 5,251,053 240,771,471 66 223,499,460 17,272,011
Revenue FY11 Budget Revenue Received Current Balance Rec. Projection Balance
County 470,818,084 470,818,084 0 100 0 0
State 196,451,138 140,960,915 55,490,223 72 62,490,223 2,953,903
Federal 120,000 171,602 -51,602 143 -51,602 0
Other 5,654,344 4,607,493 1,046,851 81 1,046,851 0
Appropriated Fund Bal. 33,400,000 33,400,000 0 100 0 0
Total Revenue 706,443,566 649,958,094 56,485,472 92 63,485,472 2,953,903
Projected Change to Fund Balance _at_ June 30, 2011 20,225,915
22VSBA Quarterly Report Detail ex.
23EXPENDITURES
24LCPS School Operating Fund Where the money goes
25Fund Balance/Surplus/Savings
- Coming soon to a Local Governing Body meeting
- Important issue facing School Boards across the
Commonwealth - Why it happens and why it matters
26Why it happens and why it matters
- What is lapse and turnover?
- Fluctuations of budget to actual
- Position lapse and turnover
- CAUTION, CAUTION
- Only flexibility the division has
27How To Address It
- Budget a large negative number
- Make assumptions for vacant / new positions
- Other variables
- Predicting human behavior
28Surpluses Come From Savings
- Surpluses are not a surprise
- All school divisions budgets should have unspent
funds - School divisions cannot exceed their
appropriations
29Unspent Funds
Division Percentage
Alexandria 6.5
Arlington 6.8
Fairfax 6.5
Falls Church 6.6
Loudoun 5.7
Manassas 7.1
Prince William 6.4
All school divisions have unspent funds at the
end of the year.
Source FY 2010 Comprehensive Annual Financial
Reports
30 31LCPS - Where the money comes from
- FY 2012 Amount ( in millions)
- Carryover 10.0
- Local/County funding 494.0
- State revenue 221.6
- Federal funds 13.2
- Other Funds 7.2
- Total 746.0
State 29.7
Local/County 66.2
32Local/County Funding
Source FY 2012 WABE Guide
Tax Rate 1.285 per 100 of assessed value Value
of 1 7.5 million
33State Funding the Local Composite Index
- Components
- True Value of Property
- Adjusted Gross Income
- Taxable Retail Sales
- LCPS LCI - .5854
Source DOE website
According to the LCI, locally we should be able
to pay for about 58 percent of the costs of
education and the Commonwealth should pick up 42
percent.
34Basic Aid Calculation
Sales Tax Calculation
Adjusted ADM (K-12) 61,893 State per pupil
amount 5,448 Total 337.2 million Less sales
tax (51 million) Total Basic Aid 286.2
million State share .4146 State funding 118.7
million
08 Triennial census statewide 1,511,877 08
Triennial census LCPS 71,489 LCPS
Percentage 4.7285 Sales tax statewide 95.9
billion Education share 1.125 1.1
billion LCPS percentage 4.7285 Sales tax
funding 51 million
35 36Other Stuff You Should Know
- Misinformation
- Simplify, simplify, simplify
- Strategies to cut spending
37MisinformationUsed VIDEO from SNL Violins on
Television from HULU.com
38Misinformation
- The media sometimes gets it wrong
- If your version isnt out there, it doesnt
exist. - Tell the story better
- Everyone has to help
39Simplify, Simplify, Simplify
- What kind of information do employees need?
- What can be easily understood?
- The right data will tell your story.
- Peer comparisons
- Pupil/teacher ratios
- Cost per pupil
- Compensation packages
- School-based and non-school based positions
-
40Strategies to Cut Spending
- Reduce employer share of healthcare
- Defer equipment replacement plans
- Mid-year salary enhancements
- Increase fees
- Selective elimination of programs
- Last in first out
- Reduce staffing greater than SOQ
- Review current vacancies
- Reduce extended contracts
- Increase class size
- Healthcare co-pays and deductibles
41Random thoughts about work
42.and life in general
43The nice thing about teamwork is you always have
others on your side.
Margaret Carty American Author
44I cant remember the last time I wasnt at least
kind of tired.
Author Unknown
45- Can we all just agree to ignore whatever comes
after Blue Ray? I don't want to - have to restart my collection...again.
Author Unknown
46-
- Snowflakes are one of natures most fragile
things, but just look what they can do - when they stick together.
Author Unknown
47- I disagree with Kay Jewelers. I bet on any given
Friday or Saturday night more kisses begin with
Miller Lite than Kays. -
-
-
Author Unknown
48- A positive attitude may not solve every problem,
but it makes solving any problem - a more pleasant experience.
Grant Fairley Motivational Speaker
49- Obituaries would be a lot more interesting if
they told you how the person died.
Author Unknown
50-
- Delegating work works, provided the one
delegating works too.
Robert Half Founder of Staffing Firm
51 The trouble with doing nothing is you never know
when youre done.
Author Unknown
52- It is amazing how much you can accomplish when it
doesn't matter who gets the credit.
Harry S. Truman 33rd President, United States
53- I hate it when I just miss a call (Hello? Darn
it!), but when I immediately call back, it rings
nine times and goes to voicemail. What'd you do
after I didn't answer? Throw the phone and run
away? -
-
-
Author Unknown
54 It is hard to lead a cavalry charge if you think
you look funny on a horse.
Adlai Stevenson Former Vice President
Congressman
55- No one can whistle a symphony, it takes a whole
orchestra to play it.
Halford E. Luccock American Methodist Minister
56-
- I totally take back all those times I didn't want
to nap when I was younger.
Author Unknown
57- Men have never been individually
- self-sufficient.
Reinhold Niebuhr American Theologian
58- I think part of a best friend's job should be
- to immediately clear your computer
- history if you die.
Author Unknown
59- I keep some peoples phone numbers in
- my phone just so I know not to answer
- when they call.
Author Unknown
60- Nothing sucks more than that moment
- during an argument when you realize
- you're wrong.
Author Unknown
61- Map Quest really needs to start their
- directions on 5. I'm pretty sure I know
- how to get out of my neighborhood.
Author Unknown
62-
- What separates those who achieve from
- those who do not is in direct proportion
- to ones ability to ask for help.
Donald Keough Former Coca Cola President
63 You moon the wrong person at an office party,
and suddenly you arent professional anymore.
Author Unknown
64- Teamwork is the fuel that allows common people to
attain uncommon results.
Andrew Carnegie Entrepreneur Philanthropist
65- I'm always slightly terrified when I exit
- out of Word and it asks me if I want to save
- any changes to my ten-page document
- that I swear I did not make any changes to
-
-
Author Unknown
66- The best way to appreciate your job is to imagine
yourself without one.
Oscar Wilde Irish Writer/Poet
67- You never know when it will strike, but sometimes
there comes a moment at - work when you just know that you aren't
- going to get anything productive done
- for the rest of the day.
Author Unknown
68-
- A pat on the back is only a few vertebrae removed
from a kick in the pants, but is - miles ahead in results.
-
-
-
Ella Wilcox American Author/Poet
69-
- I hate leaving my house confident and
- looking good and then not seeing
- anyone of importance the entire day.
- What a waste.
-
-
-
Author Unknown
70- The only place where success comes before work is
in the dictionary.
Donald M. Kendall Former CEO Pepsico
71-
- There is a great need for a sarcasm font.
Author Unknown
72Author Unknown
73- Bad decisions make good stories.
Author Unknown
74- Simply stated, it is less me and more
we.
Author Unknown
75-
- I think the freezer deserves a light as well.
Author Unknown
76 None of us is as smart as all of us.
Ken Blanchard American Author Management Expert
77-
- We are all in this together.
78QUESTIONS? Jennifer.Bergel_at_LCPS.org Leigh.Bu
rden_at_LCPS.org