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transcript
The Mechanics of Building a Charter School Budget
Statewide Charter School Budget Boot Camp
September 24, 2009
©2009 -- ESC Region XI
Financial Health of a Charter School
Audit Report
Fund Balance
Financial Performance
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©2009 -- ESC Region XI
Warning Signs of Financial Troubles
Declining enrollment
Inappropriate staffing levels
State funding not monitored
If you had an overpayment, did you save the overpayment?
©2009 -- ESC Region XI
Example Charter School
Possible Scenario
$425,000
$475,000
$350,000
$25,000
-$120,000
300
225Students
28Staff
20
©2009 -- ESC Region XI
Budget Laws and Polices
Texas Education Code Section 44.002 through 44.006
The Superintendent shall prepare, or cause to be prepared, a proposed budget covering all estimated revenue and proposed expenditures of the District for the following fiscal year. Education Code 44.002
Budget prepared in accordance with GAAP and FASRG specifications
Budget must be adopted by the governing body not later than August 31 or June 30
©2009 -- ESC Region XI
Budget Process Planning
Instructional Plans Planning should drive the budget, the budget
should not drive the Instructional Plan
Preparation Develop Budget Guidelines Develop Budget Calendar Develop Building Maintenance and Equipment
Calendar
Federal/Program FundsInstructional Planning
Instructional Plan
Comprehensive Needs
Assessment
Instructional Improvement
Pieces
Campus Expenditures
©2009 -- ESC Region XI
From an Auditor’s Perspective
Reserve space in your instructional plan to include how
you spend your Sate Compensatory Ed
and Title Funds.
It’s a MUST!
©2009 -- ESC Region XI
Sample using dollar amounts and FTEs
Example from actual instructional plan:Thunderbird Elementary is a Title I School-wide
campus with a 90% or more free/reduced meal rate. State Compensatory Education Funds will be used on the school-wide campus to support and upgrade programs and activities for students at-risk of dropping out of school.
Campus Total: $208,112.00 FTEs: 9.3 Personnel: $208,112 Supplies $0
©2009 -- ESC Region XI
Purpose of Title I, Part A
Improving Basic Programs provides supplemental funding for resources to help schools with high concentrations of students from low-income families provide a high-quality education that will enable all children to
meet the state's student performance standards.
©2009 -- ESC Region XI
Purpose of Title I, Part A, cont.
Title I, Part A supports schools in implementing either a school-wide program or a targeted assistance program. These programs must use effective methods and instructional strategies that are grounded in scientifically based research.
©2009 -- ESC Region XI
What is a Needs Assessment?
A good plan starts with knowing the needs of your students.
The data from assessments (needs) should support your expenditures that will enable all children to meet the state's student performance standards.
©2009 -- ESC Region XI
A Look at the Yellow Hand-Outs
Update 13 – Instruction plan outline Sample Plan Skeleton with sample
SCE statement Required Components – Title I Allowable and Unallowable costs Recap
©2009 -- ESC Region XI
Strategies Person Responsible
Resources Formative Evaluation
Timeline Summative Evaluation
Sample Academic Campus PlanGoal: Objective:
©2009 -- ESC Region XI
Each ESC Region has specialists!Use them for support!
Texas Education AgencyDahlinda Alaniz
Division of Financial Audits512-463-9095
State Compensatory Ed Specialists
©2009 -- ESC Region XI
Revenue Sources
State Funding Foundation School Program (FSP) Technology Allotment State Fiscal Stabilization Fund (SFSF)
Federal Funds and Grants
©2009 -- ESC Region XI
Building the Campus Budget
Established by charter school guidelines
Level of review determined by charter school size
Budget Line-Item
Non-Allocated/Priority
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©2009 -- ESC Region XI
Building the Budget Code Structure
Fund Codes Function Codes Object Codes Local Option Codes Organizational Codes Fiscal Year Code Program Intent Codes Local Option Codes
PEIMS Information ADA Types of students (e.g., Sp. Ed., G&T, Career Tech., etc.)
©2009 -- ESC Region XI
Estimate Salaries 70%+ are salary-related expenditures
Salaries and Wages 6111X and 6112X Social Security 6141 Health Insurance 6142 Workers Compensation 6143 TRS On-Behalf 6144 Unemployment 6145 TR Care 6145 Employee Benefits 6146
©2009 -- ESC Region XI
Special Program Budgets - Expenditures
Special Populations – State Program Monies Special Education (85%) Career and Technology (90%) Gifted and Talented (85%) Bilingual Education (85%) Compensatory Education (55%, 45% indirect costs)
State Board of Education directed to increase indirect cost rates in similar fashion for other special population programs
Title Programs (85% ?)
©2009 -- ESC Region XI
Internal Controls of the Budget Calculate and project revenue and expenditures
– be conservative. Use historical information. Build the budget with proper coding. Know how the coding relates to the TEA
Summary of Finance and other supporting state and federal documents. Proper coding keeps the school in compliance. Correct PEIMS data; improper PEIMS reporting
may cost the campus revenue.
©2009 -- ESC Region XI
©2009 -- ESC Region XI
Budget Amendments
Adopted budget can be amended Function level Other budget amendments are
determined by Board policy Amended budget must be recorded in
board minutes
©2009 -- ESC Region XI
Activity Funds Local Policy One Account Collection of funds Expenditure payments Check writing Purchase orders/requests Money in classrooms Events and money collected
©2009 -- ESC Region XI
Teacher Organizations (e.g., TSTA, ATPE, etc.)
Civic Organizations (e.g., Optimist, Lions, Rotary, etc.)
Booster Clubs (e.g., Athletics, Band, UIL, etc.)
Parent Support Groups (e.g., PTA, PTO, etc.)
Charter School Support Organizations
©2009 -- ESC Region XI 26
Miscellaneous – New (HB3646)
Vending machines Requires adoption of local policies
regarding use of funds from vending machines, gate receipts, rentals, etc.
Requires expenditures to be related to district’s educational purpose and to provide benefit to district or its students
Lisa Dawn-FisherTEA
©2009 -- ESC Region XI
Dr. Clyde W. Steelman, Jr.Deputy Director of Administrative and Business Servicesclydes@esc11.net 817-740-3630
---------------------------------------------------------------------Linda RowlandEducational Consultant for Administrator Developmentlrowland@esc11.net 817-740-7535
-------------------------------------------------------------------DeAnna JenkinsCoordinator for Administrator Developmentdjenkins@esc11.net817-740-3685