FINANCIAL SERVICES BUDGET DEPARTMENT BUDGET 101

1. FINANCIAL SERVICESBUDGET DEPARTMENTBUDGET 101 February 27, 2012

2. BUDGET DEPARTMENT • Marilyn Farrell, Budget Director • marilyn.farrell@humble.k12.tx.us, x8012 • Jennifer Eaton, Budget Coordinator • jennifer.eaton@humble.k12.tx.us, x8024 • Patty Epps, Position Control • patricia.epps@humble.k12.tx.us, x8122

3. ACCOUNT CODE STRUCTURE • GAAP and Legal Compliance • Guidelines for financial accounting and reporting are derived from generally accepted accounting principles (GAAP). • School districts are required to adhere to GAAP. • The Texas Education Code (TEC) and other state statutes contain the legal requirements for public school finance, accounting, budgeting and reporting.

4. ACCOUNT CODE STRUCTURE • PROGRAM • ACTIVITY • SOURCE • PROJECT • FUND CODE • FUNCTION • OBJECT • SUB-OBJECT • ORGANIZATION *Source: Budget Management Guidelines and Procedures document available for download on the Budget website

5. ACCOUNT CODE STRUCTURE • FUND CODE - A fund (3 digits) is an accounting entity with a self-balancing set of accounts recording financial resources and liabilities. The fund's purpose can be established by the state or federal government as well as the school district. • EXAMPLES OF FUND TYPES • General Fund (Fund 199) • Special Revenue Funds (Funds 200 – 499) • Federal (Funds 200 – 379) • State (Funds (380 – 459) • Local (Funds (460 – 499) • Capital Projects Funds (Funds 600 – 699) • Internal Service Funds (Funds 750 – 799) • Fiduciary Funds (Funds 800 – 899) *Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

6. ACCOUNT CODE STRUCTURE • FUNCTION - A function (2 digits) represents a general operational area in a school district and groups together related activities. Most school districts use all of the functions in the process of educating students or organizing the resources. For example, in order to provide the appropriate atmosphere for learning, school districts transport students to school (function 34), teach students (function 11), feed students (function 35) and provide health services (function 33). Each of these activities is a function. • SUMMARY OF COMMONLY USED FUNCTIONS • 11 Instruction • 12 Library • 13 Staff Development • 23 Campus Administration • 31 Counselor • 33 Nurse • 34 Transportation to/from school • 36 Extracurricular • 41 General Administration • 5 1 Maintenance • 52 Security • 53 Data Processing • 61 Community Services *Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

7. ACCOUNT CODE STRUCTURE • OBJECT - An object code (4 digits) identifies the nature of an account or transaction. The school district's accounting records are to reflect expenses at the most detailed level, as depicted in the chart of accounts for accounting and Public Education Information Management System (PEIMS) reporting (actual data) purposes. • SUMMARY OF COMMONLY USED OBJECT CODES • 6100 Payroll - Common Object Codes • 6112 – Substitutes for Teachers/Professionals • 6118 – Teacher/Professional Extra Duty Pay • 6121 – Support Personnel Extra Duty • 6122 – Substitutes for Support Personnel/Temps • 614X – Payroll Benefit Accounts *Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

8. ACCOUNT CODE STRUCTURE • SUMMARY OF COMMONLY USED OBJECT CODES (cont’d) • 6200 Services – Common Object Codes • 6239 – Education Service Center • 6249 – Equipment Repair Contracts • 6269 – Rentals/Operating Leases • 6291 – Consulting Services • 6299 – Miscellaneous Contracted Services *Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

9. ACCOUNT CODE STRUCTURE • SUMMARY OF COMMONLY USED OBJECT CODES (cont’d) • 6300 Supplies – Common Object Codes • 6315 – Custodial/Janitorial and Pest Control • 6321 – Textbooks • 6329 – Reading Materials • 6399 – Teaching/General Supplies *Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

10. ACCOUNT CODE STRUCTURE • SUMMARY OF COMMONLY USED OBJECT CODES (cont’d) • 6400 Other Operating – Common Object Codes • 6411 – Employee Travel • 6412 – Student Travel • 6494 – Field Trips (Humble ISD Transportation) • 6495 – Dues • 6499 – Miscellaneous Operating *Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

11. ACCOUNT CODE STRUCTURE • SUMMARY OF COMMONLY USED OBJECT CODES (cont’d) • 6600 Capital Outlay – Common Object Codes • 6631 – Vehicles >= $5,000 • 6639 – Furniture, Equipment and Software >= $5,000 • 6649 – Controllable Assets* • 6669 – Library Books and Media *Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

12. ACCOUNT CODE STRUCTURE • Humble ISD Capital Assets Accounting and Financial Reporting Regulation • Purpose of Regulation • Safeguard the significant investment in capital assets • Management tool for the replacement of recurring items • Comply with State law and regulations, and provide information for the preparation of financial statements • Ensure that capital assets are adequately insured to cover losses

13. ACCOUNT CODE STRUCTURE • Controllable Assets • Tangible or intangible assets with a useful life that extends beyond a single reporting period that do not meet the District’s capitalization threshold but for which the District maintains an inventory record for other than reporting purposes, such as security from theft. • Controllable assets include the following: • Athletic/Fine Arts equipment, including uniforms, robes and costumes • Graduation uniforms for administrators • Audio-visual equipment, including TV’s, CD players, stereos, certain cameras and projectors • Telecommunications equipment • Computer equipment (computers, laptops, printers, scanners, software) • Health & safety equipment (security systems, AEDs, etc.) • Copiers • Student desks and chairs • Office furniture • Cafeteria tables • Major appliances (these items are large, difficult to move, and generally fixed in place, e.g. ranges, refrigerators, ice makers, washers, dryers, and dishwashers) • Special needs mobility equipment • Tools • Graphing calculators • Commercial grade custodial equipment (back pack vacuums, floor scrubbers, pressure washers, wet/dry vacs, floor buffers, carpet extractors, sweepers, etc.) *Refer to the Capital Assets Accounting and Financial Reporting Regulation which governs the use of capital funds.

14. ACCOUNT CODE STRUCTURE • SUB-OBJECT - The sub-object (2 digits) further identifies the object code (numeric and alpha) and is used by a district, campus, or department for management purposes to distinguish accounts. • Sub-objects are optional in most cases and are used by the district to further define expenses such as: • Printing (PR) • Technology (65) • Postage (PM) • Mileage (MI) • Subject Areas such as Math (54), Science (67), etc. *Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

15. ACCOUNT CODE STRUCTURE • ORGANIZATION - An organization (3 digits) is a group of employees who are obligated to complete a specific responsibility and will generally have an identifiable leader or an individual who is accountable for the overall completion of the responsibility. • Organizations are defined by the Financial Accounting Standards and Reporting Guidelines published by TEA • 001-040 High Schools • 041-100 Middle Schools • 101-698 Elementary Schools • 699 Summer School • 700-997 Administrative • 998 Unallocated • 999 Undistributed *Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

16. ACCOUNT CODE STRUCTURE • PROGRAM - A program intent code (2 digits) is used to account for the cost of instruction and other services that are directed toward a particular need of a specific set of students. The intent (the student group toward which the instructional or other services is directed) determines the program intent code, not the demographic makeup of the students served. • SUMMARY OF PROGRAM CODES • 11 Basic Education • 21 Gifted & Talented • 22 Career & Technology • 23 Special Education • 24 State Comp Ed (SCE) • 25 Bilingual • 26 AEP Basic Services • 28 DAEP Basic Services • 30 SCE Title I • 31 High School Allotment • 32 Prekindergarten • 91 Athletics • 99 Undistributed *Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

17. ACCOUNT CODE STRUCTURE • ACTIVITY - The activity (4 digits) identifies the campus program, student group, or department program for which the expenditures are intended. Activities can be linked to expenditure as well as revenue accounts. • Activities are optional in many cases. They are required for centralized activity fund accounts. Activities used by the district to further define groups or departments such as: • Athletics groups (Basketball, Cross Country, Football, etc.) • Academic groups (Debate/Speech, Science Olympiad, etc.) • Departments/Classes (Math, English, Science, Library, etc.) • Organizations/Clubs (NHS, Student Council, Honor Choir, etc.) *Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

18. ACCOUNT CODE STRUCTURE • SOURCE - The source (3 digits) identifies the campus/department with budget authority over the expense/receipt. A department can continue to maintain control over those funds that are transferred to campuses and still maintain proper PEIMS coding. • Source Codes are locally defined by the District and are used to assign budget authority within the financial system. See Summary of Organization Codes for list of values. *Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

19. ACCOUNT CODE STRUCTURE • PROJECT - The project code identifies grants, bond projects, maintenance projects and other special projects where costs must be accumulated as separate projects with 5 characters in length. • Project Codes are locally defined by the district. Some of the examples of how project codes are used to further define expenditures are: • Projects beginning with F are granted by the Education Foundation • Projects beginning with B are capital projects usually funded by bonds • Projects that begin with numbers are generally federal, state or local grants where the first three digits define the fund, the fourth digit defines the expenditure period (e.g. 2 is for 2011-12) and the letter code separates multiple grants that may be combined in the same fund. • Projects that begin with GF are part of the General Fund allocation • Projects that begin with SP denote special projects related to unforeseen events (fire damage, water damage, etc.) *Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

20. ACCOUNT CODE STRUCTURE TEA STUDENT DEMOGRAPHICS Public Education Information Management System (PEIMS) ACADEMIC PERFORMANCE PERSONNEL INFORMATION FINANCIAL DATA (MUNIS)

21. GENERAL INFORMATION • Budget Management Guidelines and Procedures Document available for download on the Budget webpage

22. BREAK

23. GENERAL INFORMATION • 2.1 – Definitions • Accounting Periods - The months within a fiscal year are referred to as accounting periods in MUNIS. The District’s financial reporting periods begin with July (period 1) and end with June (period 12). • Budget Amendment – This is a transfer of budget money between general ledger accounts. These items are generally processed by the budget department.

24. GENERAL INFORMATION • 2.1 – Definitions (cont’d) • Capital Asset – Items with a useful life of more than one year and a unit cost greater than or equal to $5,000 (object code 6639.) Capital asset as defined by the District's capitalization policy includes equipment, furniture, works of art, historical treasures and infrastructure.

25. GENERAL INFORMATION • 2.1 – Definitions (cont’d) • Controllable Asset – Items that do not meet the district's capitalization threshold, but for which the district maintains an inventory record, and which have a useful life of more than one year (object code 6649.) See the Capital Outlay Guidelines for a specific list of items which qualify.

26. GENERAL INFORMATION • 2.1 – Definitions (cont’d) • External Budget Amendment - transfer to/from an account outside of the originating department’s budget authority. • Fiscal Year - The start and end of the District’s financial year. The district’s fiscal year begins with July and ends with June. • Internal Budget Amendment - transfer to/from accounts within the originating department’s budget authority.

27. GENERAL INFORMATION • 2.1 – Definitions (cont’d) • Journal Entry – This is a transfer of actuals (e.g. revenues, expenditures) between general ledger accounts. These items are generally processed by the general ledger accountants. • Multiyear Fund – Need exists to manage financial information for a set of accounts greater than one fiscal year (many federal grants have a begin and end date of greater than one year), or where the fiscal year of the grant does not line up with the district’s fiscal year (Jul – Jun.)

28. GENERAL INFORMATION • 2.1 – Definitions • 2.2 – Creating New Accounts • 2.4 – Comparison Symbols • 2.5 – Quick Reference Tools • 2.6 – Understanding Multiyear Funds

29. GENERAL INFORMATION • Journal Acronyms • Accounts Payable • API - AP Invoice Posting • APM - AP Invoice Maintenance • Budget Entries • BUA - Budget Adjustment • BUC - New Budget Posting • Cash Receipts • CRP - Posted Payments & Reversals • GCR - General Cash Receipts

30. GENERAL INFORMATION • Journal Acronyms (cont’d) • Encumbrances • GEL - General Encumbrance Journal • Journal Entries • GEN - General Journal Entry • GNI - General Journal Import • GRV - Journal Reversal • Inventory Entries (Warehouse) • INI - Inventory Issue • Work Order Entries (Print Shop, Postage) • WOJ - Work Order Journal

31. GENERAL INFORMATION • Journal Acronyms (cont’d) • Purchase Order Entries • POE - PO Entry • POL - PO Liquidation • POM - Purchase Order Maintenance • SOY - Open New Fiscal Year • YEC - Close Current Fiscal Year • Payroll Entries • PRJ - Payroll Distribution Journal • PRX - Payroll Texas TRS

32. BUDGET TRANSFERS AND AMENDMENTS • 4.1 Internal Budget Transfers • 4.2 External Budget Transfers • 4.3 Viewing or Editing Pending Amendments • 4.4 Budget Amendments for Board Approval • 4.5 Board Meeting Dates • 4.6 Making Deposits in Munis • 4.6.1 Athletic Activity Fund • 4.6.2 Campus Activity Fund • 4.6.3 ERATE • 4.6.4 Foundation Grants • 4.6.5 Livestock Activity Fund • 4.6.6 Local Misc Deposit • 4.6.7 Local Vending Deposit

33. BUDGET TRANSFERS AND AMENDMENTS • Transferring Centralized Activity Funds • Between Campus (461) Activity Accounts • Create an internal budget transfer in Munis • Include description of why funds are transferring • Release for campus administrator’s approval • Campus (461) or Student (865) Activity Account to Student Activity (865) or Scholarship Account (810) • Complete Request for Internal Transfer of Funds form • Initiate budget transfer in Munis (status will be “unbalanced”) • Record journal number on transfer request form and submit to the Director of Campus and Departmental Support • Once original copy of form is received, transfer will be completed and released for your campus administrator’s approval • Original form will be returned to you when process is complete

34. BUDGET TRANSFERS AND AMENDMENTS • Transferring Centralized Activity Funds (cont’d) • Between Student (865) Activity Accounts • Complete Request for Internal Transfer of Funds form • Initiate budget transfer in Munis (status will be “held” – do not release journal) • Record journal number on transfer request form and submit to the Director of Campus and Departmental Support • Once original copy of form is received, transfer will be completed and released for your campus administrator’s approval • Original form will be returned to you when process is complete • Student (865) Activity to Campus (461) Activity • Transfer from student activity to campus activity are generally not allowable • Contact the Finance Department with questions

35. BUDGET TRANSFERS AND AMENDMENTS • Querying and Printing Posted Journals • Under the Financials Menu, select General Ledger Menu, Journal Entry/History, then click Journal Inquiry/Print • In the Journal Inquiry/Print screen, click the magnifying glass to enter “find” mode • Input these criteria to find a budget amendment journal: • Year = Fiscal year journal was posted (2012) • Period = Period journal posted (Jul = 1, etc.) or leave blank. • Journal = Enter journal number or leave blank • Source = BUA for budget amendment journals • Created by = your user id (first initial and first 6 letters of last name) • Leave the remaining fields blank and click Accept (green check) • Scroll through journals on screen, print, display or save as PDF file

36. QUERIES, REPORTS AND GUIDELINES • 3.1 GL Account Inquiry • 3.2 YTD Budget Report • 3.3 Capital Outlay Guidelines • 3.4 Payroll Template • 3.5 Purchase Orders by GL Account

37. QUERIES, REPORTS AND GUIDELINES • Centralized Activity Fund Reporting • Use Report Sequence under Report Options to control how the report sorts and breaks Example of Report Options to use for printing reports for Sponsors

38. QUERIES, REPORTS AND GUIDELINES • Centralized Activity Fund Reporting (cont’d) • Example Sponsor Report (see Report Options on previous slide)

39. QUERIES, REPORTS AND GUIDELINES • Centralized Activity Fund Reporting • Use “Totals Only” to summarize by Report Sequence for reporting to Principals Example of Report Options to use for printing reports for Principals

40. QUERIES, REPORTS AND GUIDELINES • Centralized Activity Fund Reporting (cont’d) • Example Principal Report (see Report Options on previous slide)

41. QUERIES, REPORTS AND GUIDELINES • Budgeting for P-Cards • Funds set aside using sub-object P1 • P-Cards using 199-General Fund • Funds will be re-appropriated each year from your current year allocation • Set aside funds will be used against P-Card purchases for June each year • In the event a P-Card is cancelled, remaining funds will be released into available balance • P-Cards using other funding sources • Funds will be set aside one time and remain set aside until P-Card is deactivated • Set aside funds will be used against P-Card purchases for the last month the P-Card is active • Remaining funds will be released into available balance

42. QUERIES, REPORTS AND GUIDELINES • Year End Close • 15% Carry Forward • Available balances at year end can be rolled forward up to a maximum of 15% of your original General Fund allocation • Accounts that are not part of discretionary funds will be excluded from this calculation (example: utilities, legal fees, etc.) • Amount will be added to your supply account once approved by the Board of Trustees at the September board meeting

43. QUERIES, REPORTS AND GUIDELINES • Year End Close (cont’d) • Cut Off Dates • Transfers between functions for 199-General Fund must be submitted no later than May 31, 2012 in order to be approve by the Board at the June board meeting • All requisitions must be entered and approved by administrator June 14, 2012

44. QUERIES, REPORTS AND GUIDELINES • Year End Close (cont’d) • A/P Reconciliation • If the appropriate documentation is received by A/P, funds will be appropriated in the next fiscal year for purchases where the goods have not been received by Jun 30th • Reconcile open PO’s by running the Purchase Orders by GL Account report (section 3.5) and insure only valid purchase orders are carried forward into the next fiscal year

45. QUERIES, REPORTS AND GUIDELINES • Year End Close (cont’d) • Capital Outlay Allocation • Budget submitted by Feb 23rd • All requisitions entered and approve by administrator by May 11th • Receiving records entered for items received / services provided on or before Jun 30th by Jul 10th • All items must be received by Aug 31st • Receiving records entered for items received / services provided after Jun 30th by Sep 7th • ALL PAYMENTS MADE BY A/P NO LATER THAN SEP 30TH

46. BEST PRACTICES • Review YTD Budget Reports once per week • Resolve negative balances once per week • Periodically review and purge any pending budget amendments (section 4.3) and requisitions • Review Field Trip reports from Transportation to ensure correct accounts will be charged • Maintain sufficient funds in supplemental pay accounts (6112, 6118, 6121, 6122) and field trip accounts (6494)

47. BREAK

48. POSITION CONTROL

49. WRAPPING UP • Conclusions • Questions • Scheduling Campus Visits

50. THANK YOU!!