Budget ManagementCentral Office Administration, August 28,2015

Agenda

Budget UpdateBudget Manual Highlights:

Responsibilities of Budget Directors Program Assignments Budget Codes Contracts Disbursements

Payroll RemindersOther Miscellaneous Topics

Budget Update

State Budget Pending: Still Operating under a Continuing Resolution (CR)

County Budget Approved – 4.2 % Increase

NHCS Budget:1. Budget Resolution approved 8/4/152. Carryover has been keyed3. Recommended Local Funding Changes

based on our best estimates of State Raises

4. We will amend State funding and finalize pay scales after State Budget Approved

Budget Update:

Pending State Budget Issues

Teacher Assistants: Funding reduced 6% in Continuing Resolution and 52% in Senate Budget

Classroom Teachers: Substantial k-3 Increase in Senate budget funded from TA reduction

Driver Education: No funding in CR; $65 Fee authorized Our program on hold until State Budget Finalized Local funds to be appropriated if no State Funding Approved

Pay: Beginning Teacher pay increased to $35,000 in CR

We anticipate step increase for teachers and $75o Bonus for other employees but don’t have details or state approval yet!

Budget Update:

Highlights of Proposed NHCS Budget

Teachers: Student Growth Funded in CR Teaching positions allotted on current formulas

Teacher Assistants: Local funds used to offset reduction in CR, but additional reductions are possible

Hiring for k-3 TA vacancies on hold until State Budget finalized

Other School Formula Changes: Increase Custodial Allocations as per budget proposal:

14 half-time positions added Increased selected positions to 12 months

Added 3 Social Workers High School AP formula returned to 1:4 Adding half-time HS testing clerical support New $10 per student Staff Development Allocation

Budget Update:

Salaries and Benefits

Local Supplements: Veteran Teacher (steps 26+) Supplement Increase to 9%

New Schedule for Athletic Stipends

$500 Bonus for Classified and CO: Added to Salary Reserve but won’t be finalized until state budget approved in case funding needed for another purpose

Budget Update:

Other Local Changes

New Positions: Special Education Budget Support Position

Accounts Payable Support Testing Technician Painter Half-time Health and PE Coordinator

Instructional Software and Curriculum

Revised Board Scholarships

Budget Update:

Capital Outlay

To be funded as per original proposal

Partially funded in April 2015 with available funds

$3 Million County Increase: Renovation of Sidbury Road Property for College Park

Lakeside Demolition and Site Improvement

Technology Computer Replacements Furniture and Equipment Replacements

Budget Manual Highlights

Responsibilities of

Budget Director

Implementation of programs and initiatives:

Planning for expenditures in alignment with school or department goals

Ensuring all procedures are followed and funds are expended in a timely and accurate manner

Authorizing expenditures in accordance with financial procedures and in compliance with grant requirements

Requesting Budget Transfers and/or Position Changes as needed

Review and reconciliation of transactions to ensure general ledger properly reflects activity approved by the Budget Manager

Budget Delegation: Responsibility and accountability for delegated duties remain with the budget director

Budget Management& Accounting Flow

Plan

• Budget Development (Align with Goals)• Implementation Plan in a Timely Manner• Verify Funding Availability

Purchase

• Requisitions and/or Contracts• Purchase Orders; P-Cards• Ensure procedures are followed in compliance

with grant

Pay

• Verify Receiving• Send Invoices, Check Requests, or

Reimbursement Requests to AP

Evaluate

• Monthly Account Activity Review/Reconciliation• Evaluate Use of Funds

State & Federal Allotments

State Allotment Manual: http://www.ncpublicschools.org/docs/fbs/allotments/general/2013-14policymanual.pdf

Includes formula, purpose, grant term, and special provisions for each program

Federal Compliance Resources: http://www.ncpublicschools.org/fbs/finance/federal/

IDEA, Time and Effort, Maintenance of Effort, Indirect Cost, BAAS Budget and Amendment System

Program Assignments

Program Allotments/Assignments: Programs Assigned to Budget Directors Position Allotment Budgets managed centrally

www.nhcs.net/finance/budget.htm Select Program Assignments

Every program is assigned a Finance Liaison (Budget Analyst), whose duties include:

Primary Contact for budget questions Program Review/Reconciliation to help you maximize the use of your funding

Compliance oversight

Budget Tools

General Ledger: Account Lookup Grouped Accounts Code Lookup (Roll-up Codes)

On-line Receiving

Cook Spreadsheets: Reporting Tool

Doc Agent: Electronic File Cabinet

Employee Portal View Paycheck History W-2’s New in 2016: Health Care Reporting

Travel Tracker: Schedule and Approve Payment for Field Trips

Budget Codes

Segment Structure

X XXXX XXX XXX XXX XXX XXFUND FUNCTIO

NPROGRA

MOBJECT SCHOOL USE 1 USE 2

State Uniform Chart of Accounts Segments are divided by dots First 5 segments must be in compliance with

the State Chart of Accounts The last two segments are locally defined:

Use 1 for Department Numbers as needed for budget delegation

Use 2 as needed to define projects, program set-asides, or installment indicators

Budget Codes

Fund

A Fund is an Independent Fiscal Accounting Entity.

1 – State2 - General 3 - Federal 4 - Capital Outlay 5 - Enterprise (Child Nutrition)6 - Trust8 - Other Restricted Revenue

Budget Codes

Purpose

Purpose: The reason for which something exists or is used. Activities or actions performed to accomplish the objectives of a local school administrative unit.

Five Categories of Expense:5000 - Instructional Services 6000 - System-Wide Support Services 7000 - Ancillary Services 8000 - Non-Programmed Charges 9000 - Capital Outlay

Purpose Code Breakdown:

X X X XPURPOSE  

FUNCTION 

SUBFUNCTION

LOCAL USE 

Each of the 4 digits have a specific meaning/use: Example:5000 - Instructional Services 5300 - Alternative Programs and Services 5350 - Extended Day/Year Instructional Services 5353 - Summer School Instructional Services • The function (2nd digit) is used to categorize the

major operational activities of the district. The budget is approved and financial statements reported at this level.

• The sub-function level (3rd digit) provides greater level of detail used in program analysis.

• The 4th digit use is optional. We use when we need to track program expenditures at a greater level of detail

Budget Codes

ProgramReport Code

Program: A program report code (PRC) designates a plan of activities or funding designed to accomplish a predetermined objective.

Program Codes are defined by DPI to track allotments for State and Federal Programs

Local allocations are also made by program The chart of accounts for local program must match state

PRC 032 – Children with Special Needs

Locally defined programs can have a locally defined Chart

PRC 856 – Human Resources

Budget Codes

Object Code

Object: Service or Commodity obtained as a result of a specific expenditure:

100 - Salaries: All payroll amounts paid to persons who are employed by the local school administrative unit200 - Benefits: Amounts paid by the local school administrative unit on behalf of employees, in addition to the regular salary. 300 - Purchased services400 - Supplies and Materials500 - Capital Outlay700 – Transfers

 Manual includes Object Code definitions for most commonly used non-salary school codes

See State Chart for all definitions:www.ncpublicschools.org/fbs/finance/reporting/coa2015

Disbursement Procedures

Policy Guidance: All purchases and contracts shall be made in accordance with Board Policies

4610(Purchasing Administration) 3410 (Contract Administration)

All purchases of goods and services must be supported by an encumbrance (PO)

Exceptions for items to be immediately expensed are listed in Disbursement Procedures

Disbursement Violations: Require Justification Subject to personal liability

Contracts

Contracts which need Board Approval: Service Contracts over $50,000 Contracts extending into the next fiscal year

Format: Standard format on web site

Need vendor # or W-9 completed by vendor before pre-audit

Any other formats or vendor contracts should first be reviewed by Mr. Bullard

Pre-audit: All service contracts must be pre-audited We must have budget code to pre-audit

Check funding before you submit! CFO must sign first or second, but not last so contract is pre-audited before it is in effect

Federal Surplus

Procedural Change: New guidelines increased value of federal assets that need DPI approval for disposal to $5,000

Please review the Federal Disposition process carefully before disposing of any Federal Assets

Other Topics Included in Manual

Print Shop

ContractsTextbooks

Travel TrackerBudget

Transfers

Doc Agent

Allotme

nts

Cook Spreadsheets

Workshop ProceduresPre-Audit

Federal Programs

Travel Procedures

Disbursements

Discussion: What items would you want to discuss in

more detail?

•Supervisor DutiesProcedural OversightSchedule and Monitor WorkTimesheet ApprovalEmployee Training:

Payroll Operator should train your new employees on timekeeping procedures, leave, and employee portal

Assign a payroll back-up and ensure they are adequately trained

Payroll Reminders

Payroll Reminders

Payroll Due Dates: Be aware of due dates/deadlines Extra Duty Pay Requests and Payroll Corrections must be received by that date

Make sure your payroll back-up is also aware of the dates and knows when payroll operator will be out.

Make sure Professional Leave forms are approved and returned to schools in a timely manner:

They are not allowed to use budgeted funds for subs unless they have you approval prior to the date they key.

Only applies to Non-Exempt StaffHR publishes a list by positionEarned at time and one-half for actual hours worked in excess of 40

Earned at straight time for if total hours including leave and holidays exceed 40

Should be pre-approved by SupervisorCompensatory Systems are not allowed for Exempt Employees

For employees set up to receive overtime rather than comp time, approval should only be given if funding is available

Compensatory Time

and Overtime

Employees must be allowed to use within a reasonable period of requested use:

Within 30 days of request May be required to use prior to annual or bonus leave

Unused balances carry over to the next year

Balances in excess of 240 hours or any balance payout upon termination or transfer will be paid from school or department overtime codes:

If budget balance insufficient, school or department budgets will be transferred as needed

Balances should be monitored monthly by the supervisor

Compensatory “Comp” Time

Cook Training

More training to be offered in the fall

Contact us with questions if you can’t access your data or are not sure which report to use

Individual Training can be scheduled through your Budget Analyst

Internal Controls

Three components of internal controls:

1.Safeguarding resources against waste, fraud, and inefficiency

2.Promoting accuracy and reliability in accounting and operating data

3.Encouraging and measuring compliance with board policy.

Discussion: What processes do you have in place to ensure assets/resources are safeguarded and procedures followed?

Questions?

Thanks for all you do!

Let us know how we can help.