1. ACSA Leadership Conference November 2013
Brett W. McFadden, CBO Pajaro Valley USD
Sandra J. Harrington, CBO Ukiah Unified School District
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2. The Big Picture: Areas of Responsibility
The Role of the Business Department
The Role of the Principal
The Budget Process: Macro-to-Micro
State Budget
District Budget
Site Budgets
Other Areas of Responsibility
Attendance
ASB
Fundraising
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4. It will depend on the size of the district
◦ Larger districts (6k ADA +) – more of a leadership and strategic role, with reliance on
department directors for technical expertise
◦ Smaller districts (3k ADA -)– more technical expertise and hands on, may rely more on
the county office of education for direct service
But the CBO is the one that’s in charge of the operational and fiscal aspects of the
district – the stuff that makes the wheels go round
Their top priority – keeping the district fiscally solvent!
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5. Customer Service and Support – We are dedicated to helping you “Do It Right”
The responsibilities of the business office include:
◦ Accounting
◦ Budgeting
◦ Purchasing
◦ Technology
◦ Facilities
◦ Maintenance, ops, grounds, and transportation
◦ Food services
◦ Risk management and safety
◦ And any other operational, technical, administrative matter
Advice for a new principal – get to know the business office staff well, “always take care of the
gate keepers”
Keep in mind that they are not typically educators – they often will speak and think differently
than instructional folks
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6. Instructional and Site Leader
Budget Management
Recordkeeping
Legal Compliance
Safety
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7. School finance is complicated – even seasoned veterans make mistakes
Keep your own records – it is the site leader’s responsibility
◦ District financial systems are often hard to understand – keep your own excel spreadsheets
Don’t rely solely on the district office for record keeping
There will often be a delay from when a site encumbers or spends funds and when
that activity shows up on a district report and/or updated budget
Distinguish between ongoing commitments and one-time expenditures – you may
look like you have the budget, but your ongoing commitments may limit your ability to
spend funds at the end of the year
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8. Projects education plan for fiscal year
Shows sources of funds and expenditures
School Site Council
School Plan for Student Achievement
Informs the public
Guides evaluation of a year’s program
Guides comparison to prior years
9. It’s a brand new world…2012/13
Local Control Funding Formula…
Local Control Accountability Plan
(LCAP)…Common Core State
Standards…
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The LCFF is the most sweeping change to school finance policy in 40 years
Policy and budget making via formulas is gone
◦ Local control accountability plan and budget developed simultaneously = What you will do
and be held accountable for
◦ Under an 8-year phase in
LCFF/ LCAP
The paradigm shift:
Spending directly accountable to educational outcomes
13. Factors K-3 4-6 7-8 9-12
Grade Span Base
Grant per ADA
$6,845 $6,947 $7,154 $8,289
Adjustment factors 10.4% CSR -- -- 2.6% CTE?
CSR, CTE amounts $711.88 -- -- $215.51
Add the following amounts to the base grant and adjustments above:
• Supplemental grant - 20% of the grade span base grant multiplied by the
districtwide % eligible students
• Concentration grant - 50% of the grade span base grant multiplied by the
districtwide % eligible students that exceed 55% of total enrollment
Add each column to get target grant and divide by 8 to get yearly increase
Add on: Home-to-School Transportation and Targeted Instructional Improvement Grant
Funded at 2012-13 levels
14. ◦ $1.25 billion for Common Core implementation –
one-time over two years
◦ CTE one-time grants - $250 million statewide
◦ Prop. 39 energy efficiency grants – dedicated
solely to schools via formula
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Check your LCFF funding and 8-year target
◦ Figures could be inaccurate, do double check
◦ Double check F/R lunch count and EL student enrollment
◦ Check that your base year amount is correct
Watch for updates and direction on Local Control Accountability Plan
Start educating your board, employees, unions,
community now
Integrate LCFF planning into Common Core
implementation and planning
16. Core Includes (but not limited to)
Teachers/classroom Adult Ed
Professional Dev. Sports/Athletics
Facilities/Planning Books/Supplies
Educational Services Utilities
Maintenance Health & Welfare
Operations BTSA For New Teacher
Textbooks Gate
IT Board of Trustees
Business Services Safety and Security
HR Student Services
State categoricals Child Care
Transportation Healthy Start
Nutrition/Food
Migrant Ed (State)
Nurses
Speech/Hearing
State/Federal Accountability
New unrestricted funding is limited
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Districts will need to develop a process for LCAP development and approval
• What do you do now?
• How much does that cost?
• What must you absolutely
do to stay operational?
• Where do you want to be?
• What do your students
need?
This is like zero-
based budgeting
• How much do you get
under LCFF?
• What is your yearly
revenue growth?
• What is the break down –
restricted vs. unrest.?
• What are your immediate
and long term needs?
• What does your board
look like and want?
• Where is your
community?
• Where are your unions?
• What is your
communications and
political game plan?
Internal planning w/
the LCFF model
Facilitating, selling,
communicating
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District revenues
Equates to
a 23%
drop in
state
revenues
Eight year phase in of LCFF funding
Return to 2007-08 per ADA
statutory funding levels
Phased recovery over time
20. • Projects education plan
• Identifies sources of revenue &
expenditures
• Informs the public
• Guides evaluation of programs
• Trend Analysis
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21. Developed and adopted each year
Revised no less than two times per year
Many forms and schedules
Many factors contribute to change
22. Locally Controlled Funding Formula (LCFF)
◦ Base funding
Determined by ADA, Grade span target funding levels
◦ Supplemental and Concentration funding
Determined by Unduplicated English learners, FRPM eligible and foster care
students
◦ Data Integrity
CalPADS – Directly tied to funding
◦ Includes previously designated funding sources
EIA, CSR (add on), ROP, Tier III Flex Categoricals
◦ Accountability Requirements – LCAP
A work in process
23. Add-ons to LCFF
◦ Home-to-School Transportation
◦ Targeted Instructional Improvement Grant (TIIG)
State Lottery
Common Core Standards Implementation
◦ One-time funding – Ongoing Need
Spending authority over two years
◦ Technology, Professional Development, Instructional Materials
24. Revenue
◦ CBEDS
◦ ADA
◦ COLA
◦ New Programs
◦ Eliminated Programs
◦ Statewide ADA
Expenditures
• New Programs
• Delivery of Programs
• Carry Over Balances
• Balance from prior year programs
• Calculated when year-end closing completed
• September 15th
• Audited by external auditors
• Step & Column
• Salary Costs
• Unemployment Insurance
• Worker’s Compensation
• Cost of Doing Business
25. Budget action: Adoption date:
Adopted budget* July 1
Unaudited actuals (fiscal activity through year end) By September 15
Annual independent audit of prior-year budget October each year
1st
Interim Report (activity through Oct 31) December 15
2nd
Interim Report (activity through January 31) March 15
3rd
Interim Report (activity through June 30) If required by COE
Federal fiscal year Oct 1 – Sept 30
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•If no state budget by July 1, a revised budget must be adopted within 45 days after the state budget is adopted
•Federal expenditure reporting will follow the federal fiscal year
27. LEAs typically get their revenues from five sources:*
1. State aid: state sales and income taxes – allocated via the Proposition 98 funding
formula
2. Property taxes: Collected locally but allocated to schools based on a state-determined
formula (Prop. 98)
3. Federal aid: Earmarked for special purposes, most notably Child Nutrition, Special
Education, and No Child Left Behind (NCLB)
4. Local miscellaneous: Can include such sources as community contributions, interest
income, developer fees, and revenues from local parcel tax elections
5. Lottery: Portions of the proceeds from the California State Lottery goes to school districts
on a per-pupil basis, providing a token per-pupil allocation to school districts and charter
schools
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* EdSource and Legislative Analyst’s Office
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EdSource Jan. 2011
* Not all revenues go to instruction. For example, $2.5 billion pays for child care and adult ed.
29. Unrestricted Income – Resource “0000”
◦ Not restricted or designated by the donor
Not subject to specific constraints
May be used for any purpose not prohibited by law
Restricted Income – Resource “1000-9999”
◦ Legally restricted use
◦ Restricted use defined by owner
For specific purposes
30. All school district budgeting is organized according to the Standardized
Accounting Code Structure (SACS)
SACS provides a level of consistency for budget comparisons and reporting
It provides:
◦ Ability to identify expenditures by type and amount
◦ Ability to make reasonable comparisons between districts and programs
Districts are required to use SACS for state and federal reporting purposes
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31. The seven fields in SACS and the required minimum digits for each are:
Note: These are minimums, districts may require additional digits
◦ Fund - 2 digits
◦ Resource - 4 digits
◦ Project Year - 1 digit
◦ Object - 4 digits
◦ Goal - 4 digits
◦ Function (Activity) - 4 digits
◦ District Defined – 4 digits
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32. Fund: A fund identifies specific activities or defines certain objectives of BHUSD in accordance with CDE.
Most activity occurs in Fund 01, our general fund.
Resource: The resource code is used to classify revenue and expenditures that have special accounting or reporting
requirements or that are legally restricted. This code explains what restricted/unrestricted funding source is
being used.
Object: The object code classifies expenditures by type of commodity or service. (e.g. – certificated salaries, benefits,
instructional supplies, travel & conference)
Project Year: Identifies the reporting year for a project that has more than one reporting year during the LEA’s
fiscal year.
Location: The site code designates a specific, school or department structure or group of structures that form a campus or
department under an administrator’s responsibility.
Goal: The goal identifies the instructional goals and objectives. It groups costs by population, setting, and/or
educational mode. Examples include regular education K-12, continuation schools, migrant education, and
special education. This code explains who is being served.
Function: The function identifies activities or services performed to support or accomplish one or more goals
or objectives. Examples include instruction, school administration, and transportation. This code explains what
you are doing with the funds.
District Defined: District specific code that ties to a specific function/project not identified within other codes.
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35. • Projects education plan
• Identifies sources of revenue &
expenditures
• Informs the public
• Guides evaluation of programs
• Trend Analysis
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36. Knowing what to do and when is key to success
Develop clear timelines on your site / program budgets over the course of the
fiscal year
Make sure your fiscal and instructional actions match up – if you change your
plan, change your budget to reflect the change (if needed)
◦ LCAP
◦ School Site Council
◦ School Plan for Student Achievement
Memorialize your actions – text explanations should accompany your
budgets to explain what you did, why, and when you did it.
Keep your district office budget person up to speed – always!
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37. As principal / assistant principal, you will oversee several types of budgets
The type of funds will depend on district protocols and fiscal practice
◦ Site discretionary funds
◦ Site operations and administration
◦ Books and supplies
◦ Associated Student Body (ASB) funds
◦ Federal grants – QEIA, Title I, SIG
◦ Clubs, parent groups, site council
◦ Special funds – facilities, recycling, after-school
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Unrestricted fund
•Usually recurring
•Supply and equipment budgets
•Typically less rules
Restricted fund
•Categorical programs
•Usually recurring
•SIP, EIA-LEP, Title 1
•Program-based with rules/restrictions
Grants/Donations
•Usually one-time
•Variable rules/restrictions
•Provided for specific expenditures
PTA/Booster Clubs
•Usually one-time
•Political context – keep it in mind
•Provided for specific expenditures
•Be careful / ask questions
39. Spring
◦ Begin planning for FY and instructional year
◦ Determine inefficiencies, deficiencies, and areas of improvement
◦ Determine available funding and what you want to accomplish
◦ Develop budget that coincides with program implementation and goals/objectives
◦ Begin discussions with School Site Council
Identify and align budgeted expenditures with Single Plan for Student Achievement
Start of the instructional year
◦ Resource allocation and match up
◦ Oversee program and evaluate program startup
◦ Review SPSA and budget for alignment
During the year
◦ Periodically evaluate program and budget
◦ Compare any variances to prior year
◦ Monitor year-to-date spending and where you are to budget
Monthly Budget Certification Reports – Review, transfer and certify
◦ Keep district office personnel up to date on status and progress
◦ Recommend taking these actions monthly
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40. You will likely have several different funding sources – ASB, yearbook,
PTO/A, site discretionary, campus supervision, etc. etc.
Understand the rules of each – what you can, and what you can’t
Work with your district office staff to develop one overall site / program
budget that includes all funds and spending
Organize it in a way you can easily see the macro and micro
You should be able to describe the basics of your site / program budget to
your staff, parents, board members, superintendent
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41. Personnel costs are often the top expenditure – especially for programs
◦ About 85 percent of your total budget is locked up in salaries and benefits
Things to remember and factor into site/program budgeting:
◦ Total compensation – not just salary, but benefits too!
◦ Length of position
◦ Certification
◦ Funding source – one-time vs. ongoing, categorical ?
◦ Job description – especially if a new position
◦ Management vs. labor position – is it subject to collective bargaining
◦ Reporting and accountability
◦ Layoff notification, bumping, 39-month rehire list, and other seniority requirements
Remember to work closely with the Human Resources and Business Office when personnel changes are
necessary or clarification is required.
We are here to help!
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42. Remember – all revenues are “green”
Spend most restricted dollars first
Spend time sensitive funds first
Consider multi-funding
Good balances are prudent – but remember, the money is meant for students, so spend it
appropriately and timely
Use the SMART goal approach to evaluate effectiveness – did your spending positively impact
learning and achievement?
Budget Integrity in Purchasing –Budgets have to be sufficient or purchase orders should not
be processed.
◦ .
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43. Developing and implementing budgets is a critical skill for all site leaders
Knowing it and doing it well increases your chances for success in all areas –
student achievement, site management, instructional leadership
It can be a career ender if you don’t pay attention and get sloppy
Always use the Business Office as a resource to help spend
today’s dollars on today’s students responsibly and
within the legal guidelines
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45. Average Daily Attendance
◦ Legal Responsibility
Accountability
◦ Recordkeeping
Complete & Accurate
◦ Audit focus
Errors can costs $$$$$$$
◦ Determines funding levels
State, Federal
◦ Safety
Where is my child?
Data Integrity
◦ CBEDS
LCFF = Critical to get your data right!!!!
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46. California Basic Education Data System (CBEDS)
◦ A count of enrolled students
◦ Updated every year in October
◦ Statistical data drives various fund sources
Average Daily Attendance (ADA)
◦ Average student attendance on any given day
◦ Calculated three times a year for State Reporting
◦ Determines base LCFF funding, lottery funding, etc.
47. Establish monthly activity reports and closely track expenditures and income
Identify a site-level staff member to act as bookkeeper – but monitor them, you are ultimately
responsible!
Follow district and board-adopted procedures
Distribute monthly reports to club members, staff, and business office
Put in controls for cash management and collection
See FCMAT manual – www.fcmat.org
WARNING – Don’t take this for granted. ASB funds can quickly get out of control!
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48. This is typically an account to deposit funds raised by and/or for students –
specifically mentioned in Education Code 48930-48938
Warning! – This is the most common account that is noted for audit exceptions and
mismanagement
Site leaders are responsible management and reporting
It is critical that site leaders master the essentials of proper supervision and
management of ASB funds
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49. Allowable
Field trips and camps
Science and nature trips
Library materials
Awards for students/staff
Playground equipment
Magazine subscriptions
Student services
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Prohibited
Salaries for district employee
Supplies for district purposes
Faculty professional development
Expenses for PTC/PTAs
Maintenance/repair of equipment
Items of personnel use by district
employees
50. You don’t need to be a budget “whiz” to be a great instructional leader
Business office staff won’t expect you to be a budget expert – and they may not want
you to be
You do, however, need to have a baseline competency and appreciation of budget
concepts and technical practices
More importantly, you need to respect timelines and administrative processes – they
are there because they are required to be and to protect you and the district as a
whole.
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51. A great site and program leader should be a passionate advocate for their school
and/or program
It is okay to have a bit of “push the envelope” mentality for your site/program – all
great leaders display an element of this trait
But respect the fiscal process – understand how far the envelope goes
Know the fiscal and HR process – understand it – and stay current on it
Respect fiscal and HR staff – give them proper heads up – give them the opportunity
to serve students too.
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As a leader, you are only going to be as “popular” as your last
“yes”. Strive to be trustworthy, consistent, fair, and set a positive
model of the work habits and interpersonal behaviors you value
in the organization. The popularity will eventually follow.
Dr. Jeff Baarstadt, Superintendent
Conejo Valley USD
Former CBO, Principal and Teacher
