Finances, Budgets and Finances, Budgets and PurchasingPurchasing

With Thanks and Credit to Maryanne With Thanks and Credit to Maryanne Dempster, Former Budgeting and Dempster, Former Budgeting and Accounting Manager, School District Accounting Manager, School District 17 and current Auditor with 17 and current Auditor with Province of New BrunswickProvince of New Brunswick

Budget & AccountingBudget & Accounting

As Principal, you should:As Principal, you should: Be prepared to wisely and confidently Be prepared to wisely and confidently

execute the financial aspects of being part execute the financial aspects of being part of the school administration team.of the school administration team.

Have an understanding of the Budget Have an understanding of the Budget breakdown and accounting processes.breakdown and accounting processes.

Have an understanding of the difference Have an understanding of the difference between the “Fiscal year” and the “School between the “Fiscal year” and the “School Year”.Year”.

Have an understanding of what school Have an understanding of what school raised funds are and how to account for raised funds are and how to account for them.them.

Legal FoundationsLegal Foundations

Federal GovernmentFederal Government New Brunswick LegislatureNew Brunswick Legislature Department of EducationDepartment of Education District Education CouncilDistrict Education Council School District School District

Legal DocumentsLegal Documents

Financial Administration ActFinancial Administration Act Education ActEducation Act Crown Construction ActCrown Construction Act Public Purchasing ActPublic Purchasing Act Collective AgreementsCollective Agreements District Education Council PoliciesDistrict Education Council Policies Department of Education PoliciesDepartment of Education Policies

Basic Funding ModelsBasic Funding Models

Provincial Funding from the Provincial Funding from the Department of EducationDepartment of Education

Budget GuidelinesBudget Guidelines Professional Funding NormsProfessional Funding Norms District Expenditure PlanDistrict Expenditure Plan School-based BudgetsSchool-based Budgets

Example of a School Example of a School DistrictDistrict

Expenditure PlanExpenditure PlanTeacher SalariesTeacher SalariesSpecial NeedsSpecial NeedsSchool Based BudgetsSchool Based BudgetsSchool SupportSchool SupportInformation TechnologyInformation TechnologySupplementary Educational Supplementary Educational

ProgramsProgramsFacilitiesFacilitiesTransportationTransportationDEC/PSSCDEC/PSSCDistrict OfficeDistrict OfficeEmployee BenefitsEmployee BenefitsTotalTotal

54%54%8%8%3%3%2%2%1%1%3%3%11% 11% 8%8% 5%5%5%5%100%100%

Example of School Based Example of School Based Operating BudgetsOperating Budgets

Instructional materials, Instructional materials, Equipment & photocopyingEquipment & photocopying

TelephonesTelephones Office SuppliesOffice Supplies Library MaterialsLibrary Materials Curricular TripsCurricular Trips Healthy MindsHealthy Minds PSSCPSSC PLEP (Positive Learning PLEP (Positive Learning

Environment) (District Environment) (District specific)specific)

Instructional ResourcesInstructional Resources Teacher Working Condition Teacher Working Condition

FundFund

Total School Based BudgetsTotal School Based Budgets

36%36%

8%8%2%2%4%4%5%5%3%3%2%2%23%23%13%13%4%4%

100%100%

Funding Formula’s for Funding Formula’s for school Based Budgetsschool Based Budgets

Objective: an equitable and fair Objective: an equitable and fair distribution of fundsdistribution of funds

Various factors are considered in the Various factors are considered in the funding formulasfunding formulas Pupil population, number of teachers, Pupil population, number of teachers,

elementary vs. secondary, field trip elementary vs. secondary, field trip distancesdistances

Details and calculations may be Details and calculations may be provided in “Fiscal Facts” memoprovided in “Fiscal Facts” memo

Site-based School BudgetsSite-based School Budgets•Regular Instruction: Regular Instruction:

–Classroom Supplies & FurnitureClassroom Supplies & Furniture

–Photocopying Photocopying

–Instructional Materials, Equipment & Instructional Materials, Equipment & Repairs Repairs

•School Administration Support: School Administration Support:

–Office Supplies & TelecommunicationsOffice Supplies & Telecommunications

•Library ResourcesLibrary Resources

Site-based School BudgetsSite-based School Budgets•Teachers’ Working Conditions Fund Teachers’ Working Conditions Fund

–Collective Agreement negotiated item Collective Agreement negotiated item (Schedule K)(Schedule K)

–Pre-approval of purchases/uses by Pre-approval of purchases/uses by SuperintendentSuperintendent

–Balances at March 31Balances at March 31stst carry forward carry forward

•““Healthy Minds” Nutrition Program Healthy Minds” Nutrition Program (changing in the next year)(changing in the next year)

Site-based School BudgetsSite-based School Budgets•PLEP (Positive Learning Env’t & Tutor Suppor; PLEP (Positive Learning Env’t & Tutor Suppor; may be school based or may be district based)may be school based or may be district based)

•Co- & Extra-Curricular TripsCo- & Extra-Curricular Trips

•PSSCPSSC–Parent School Support CommitteeParent School Support Committee

–To be expended as per guidelines outlined by To be expended as per guidelines outlined by District Education Council (DEC)District Education Council (DEC)

•Instructional ResourcesInstructional Resources

- - Only approved resources can be purchased unless Only approved resources can be purchased unless permission is obtained by the Superintendent.permission is obtained by the Superintendent.

School-to-paySchool-to-pay•Technically, funds are “Donations” to the Technically, funds are “Donations” to the CrownCrown

•PROCEDUREPROCEDURE–School makes the purchase (using the Purchase School makes the purchase (using the Purchase card or requisition), card or requisition),

–District pays the invoice to the vendor (requisition) District pays the invoice to the vendor (requisition) or the Bank of Montreal pays the vendor (Purchase or the Bank of Montreal pays the vendor (Purchase card). card).

–School sends in cheque to District Office to cover School sends in cheque to District Office to cover the purchase (the purchase (inincluding freight, cluding freight, exexcluding HST)cluding HST)

School-to-PaySchool-to-PayWHY?WHY?•Save the HST on purchases (i.e. Playground Save the HST on purchases (i.e. Playground equipment, Hockey Team jerseys, etc.)equipment, Hockey Team jerseys, etc.)

•Same purchasing procedures and guidelines Same purchasing procedures and guidelines apply to these purchasesapply to these purchases

•Access to Government Contracts of Supply and Access to Government Contracts of Supply and Standing OffersStanding Offers

•Benefit of tendering process through Dept Benefit of tendering process through Dept Supply and ServicesSupply and Services

–Biggest bang for the buck! Biggest bang for the buck!

•Balances at March 31Balances at March 31stst carry forward carry forward –spend your budgets firstspend your budgets first

ExpectationsExpectationsIt is expected that :It is expected that :

•Site-based school budgets will be spent, Site-based school budgets will be spent, but not overspentbut not overspent

–Surpluses do NOT carry forward for Global Surpluses do NOT carry forward for Global BudgetsBudgets

–Deficits will be charged to School-to-PayDeficits will be charged to School-to-Pay

•Purchases will be made in accordance with Purchases will be made in accordance with the Public Purchasing Actthe Public Purchasing Act

•Expenditures will be made in accordance Expenditures will be made in accordance with the educational objectives of the with the educational objectives of the fundingfunding

–e.g. Library funds will be spent on library e.g. Library funds will be spent on library materialsmaterials

Financial ReportsFinancial Reports•Summary and detail reports available on Summary and detail reports available on the WEB through the Principal or Secretarythe WEB through the Principal or Secretary

•Updated regularlyUpdated regularly

•Information reflects processed transactions Information reflects processed transactions onlyonly

•Processing is always weeks later than the Processing is always weeks later than the purchase decisionpurchase decision

Fiscal FactsFiscal Facts

Sample Information Source for School Sample Information Source for School Administrators; May be District SpecificAdministrators; May be District Specific

Fiscal Facts #1 – Budget AllocationFiscal Facts #1 – Budget Allocation Fiscal Facts #2 – Telecommunications PlanFiscal Facts #2 – Telecommunications Plan Fiscal Facts #3 – Photocopier UsageFiscal Facts #3 – Photocopier Usage Fiscal Facts #4 – Healthy Minds Fiscal Facts #4 – Healthy Minds Fiscal Facts #5 – School ReservesFiscal Facts #5 – School Reserves Fiscal Facts #6 – Instructional ResourcesFiscal Facts #6 – Instructional Resources

Teacher Working Teacher Working Condition FundCondition Fund

In accordance with the guidelines in the In accordance with the guidelines in the NBTA collective agreement.NBTA collective agreement.

Does notDoes not have to be spent by March 31 have to be spent by March 31stst..

Balance is rolled over into new fiscal Balance is rolled over into new fiscal period.period.

Prior approval from the superintendent is Prior approval from the superintendent is required for purchases outside the general required for purchases outside the general list of approved items.list of approved items.

Audit, Fraud and AbuseAudit, Fraud and Abuse

Principles for safeguarding school Principles for safeguarding school and public fundsand public funds Spending Authority Spending Authority Recording and ReportingRecording and Reporting Financial Administration ActFinancial Administration Act Public Purchasing ActPublic Purchasing Act

Risk ManagementRisk Management

Be AwareBe Aware

Be ProactiveBe Proactive

Be AccountableBe Accountable

AWAREAWARE

Roles and ResponsibilitiesRoles and Responsibilities Acts, Regs, Policies and procedures Acts, Regs, Policies and procedures

and collective agreementsand collective agreements Listen, lookListen, look Know issues, hot topicsKnow issues, hot topics

PROACTIVEPROACTIVE

Plan with teamPlan with team Know issues, resourcesKnow issues, resources Share, communicateShare, communicate Implement, monitor and redesignImplement, monitor and redesign

ACCOUNTABLEACCOUNTABLE

InformInform MonitorMonitor ReportReport InvestigateInvestigate RecordRecord Follow upFollow up

You should know..You should know..

District policies and proceduresDistrict policies and procedures Fiscal year/school yearFiscal year/school year Zero balance at year endZero balance at year end Target dates for expendituresTarget dates for expenditures Spending authoritySpending authority Purchasing regulationsPurchasing regulations

Prep Work for Preparing Prep Work for Preparing the School Budgetthe School Budget

Examine historyExamine history PrioritizePrioritize Survey StaffSurvey Staff Review SIPReview SIP Seek assistance and trainingSeek assistance and training

BudgetingBudgeting

Fixed, variable expensesFixed, variable expenses Use the guidelines providedUse the guidelines provided Review historical expendituresReview historical expenditures Needs AssessmentNeeds Assessment CommunicateCommunicate

AccountableAccountable

Present to staffPresent to staff Purchase in accordance with Public Purchase in accordance with Public

Purchasing ActPurchasing Act Receive GoodsReceive Goods Excellent record keepingExcellent record keeping

School Raised School Raised FundsFunds

Are funds that are generated Are funds that are generated at the school level for specific at the school level for specific purposes.purposes.Internal Controls to Internal Controls to safeguard cash must be in safeguard cash must be in place.place.School Raised funds can be School Raised funds can be audited .audited .Banking software to track Banking software to track funds.funds.