LOCAL SCHOOL BUDGETING

1. LOCAL SCHOOL BUDGETING Karen Lusk-Smith, CSFO Mountain Brook City Schools March 8, 2011

2. LOCAL SCHOOL BUDGETING What do you need? What will it cost? Where will the money come from? If resources are limited how do you prioritize? How do you keep track of the money spent and the balance?

3. LOCAL SCHOOL BUDGETING Long and short range budget priorities Set up realistic budget calendar Who is involved What do those involved need Develop a budget review process Managing the budget

4. KEY PLAYERS

5. TEAM APPROACH All key players must be invested in the philosophy of the school system with the goal being the best educational environment for their children.

6. TEAM APPROACH They must serve together side by side to build a strong foundation that will provide every student an effective, challenging and engaging education.

7. Team Approach • Board of Education- understand the philosophy for your school system • Administrative Staff- Principal, Assistant Principals, Athletic Director • Counselors • Teachers • Support Staff • Parents/Community

8. Team Approach It takes input from all the above individuals to plan for the upcoming budget

9. BUDGET CALENDAR February – reminder to appropriate staff to start forming a thought process March – inquire on any upcoming staffing request April-meet with appropriate staff to discuss needs and request May- Review and modify June/July -Turn in to Central Office for review August - Approve Budget

10. BUDGET PROCESS Meet with Principal to discuss initial budget needs Plan meetings to discuss individual activity budgets for needs/changes/request with appropriate departments/programs Understand where they spend their dollars Understand what they can afford Proactive – send invitations to meet with the key players

12. BUDGET PROCESS • Meet with the Principal again to review request and needs. All departmental budget request should be approved by the Principal. The Principal is ultimately responsible for anything in the budget. • Sometimes they might be referred to as ….. the big dog!!!

13. Things you need to have to start the process • Allocations/Revenue Projections • Staffing Projections • Departmental Budgets • Time • Time • Time

17. BUDGET PROCESS

18. BUDGET PROCESS

21. Meet with Principal again for last minute changes

22. BUDGET PROCESS • Review • Review • Review Compare previous years Define increases/decreases • Review

23. BUDGET PROCESS Develop a review system and manage • Print reports and review with activity managers • Make necessary amendments and review for any discrepancies and necessary journal entries if needed • Internal transfers in and out must balance • No negative balances

27. Budget Amendments

29. BUDGET PROCESS • Know your short and long term priorities • Allow for time to plan and respond and not just react to a budget crisis. • Review and manage Helps all players to stay focused on the big picture from a budgeting perspective.

31. TRIAL BALANCE THINGS TO LOOK FOR ON A MONTHLY BASIS: Make sure it is in balance Look for cash accounts added by the system Debit items have debit balance and credit items have credit balance Review receivable and payables Encumbrances and Encumbrances Offset are in balance

34. INVENTORY

35. INVENTORY

37. AUDIT FINDINGS • DEFICIT BALANCES • ATHLETIC GATES • FOOTBALL PARKING FEES • TICKET RECONCILIATION FORMS • CONCESSIONS • CHANGE CASH

38. AUDIT FINDINGS FINDING: Cash receipts turned into the bookkeeper were not deposited on numerous occasions during the examination period. This resulted in deficit balances in 21 of 65 athletic, academic and club accounts RECOMMENDATION: All cash receipts should be recorded in the proper activity and deposited in the bank account.

39. AUDIT FINDINGS FINDING: Money received from athletic gates and football parking fees were originally documented on Ticket Reconciliation forms and given (both money and forms) to the bookkeeper for processing. The bookkeeper did not issue receipts or record revenue for many athletic events or parking fees. The number of games played and attendance were determined by reviewing athletic schedules and interviewing coaches. RECOMMENDATION: All athletic gate receipts and parking fees should be properly receipted and deposited.

40. AUDIT FINDINGS FINDING: Concessions were sold at the athletic events. Two concession stands operated during football season and one during the other seasons. Monies collected were documented on Receipt Sheets and these sheets and the money were turned into the bookkeeper. Revenues were missing from one or both stands throughout the examination period. RECOMMENDATION: All concession sales should be properly receipted and deposited.

41. AUDIT FINDINGS FINDING: Ticket Reconciliation Forms(for athletic events) and Receipt Sheets (for concessions) were missing, altered and were falsified for various athletic events. RECOMMENDATION: Ticket Reconciliation Forms and Receipt Sheets should be retained for review in the original, unaltered form.

42. AUDIT FINDINGS FINDING: Checks were routinely issued for change cash to make change at the athletic games and concessions. This change cash is to be re-deposited (at the latest) at the end of the sports season but was held out for lengthy time periods. Checks were cashed over the examination period and were never re-deposited. RECOMMENDATION: Change cash should be promptly re-deposited into the school’s accounts after each event.

43. AUDIT FINDINGS FINDING: Invoices were routinely paid from the wrong activity accounts. For example, the band account might pay for the concessions for an athletic event. Funds were transferred from activities that had money to activities that did not have money without proper authorization. Reports documenting account revenues and expenditures were not being issued to the principal or teacher by the bookkeeper. Account balances were communicated verbally, by e-mail, or by adding machine tape. RECOMMENDATION: Care should be taken to properly pay invoices from the appropriate activity account. Transfers among activities should be approved by the sponsor/teacher and principal. Monthly reports should be issued to the principal and teachers showing account information and details.