1

2

Budget Development Schedule

January - Proposed Governor’s Budget To Begin July 1st

April/May - Presentations To The Board Of Budget Needs For The Next Year

June Board Meeting – Public Hearing and Formal Budget Adoption

Budget Revision Submitted Within 45 Days After The State Budget Adoption if Necessary

December 15th - First Interim Report

March 15th - Second Interim Report

3

4

How Are Revenue & Expenditure Projections Established?

There are so many unpredictable factors affecting revenue and expenditures that it is important to develop and utilize budget assumptions based on the best information available at the time the budget is adopted.

The Adopted Budget, therefore, should be considered a “financial snapshot” on the date it is adopted. As variables change, formal adjustments, approved by the Governing Board, are made throughout the course of the year.

5

Where Does The Money Come From?

Most of the district’s General Fund revenue is generated from the district’s revenue limit, which provides funds to the district based on a State-determined dollar amount times the average number of students who are in attendance throughout the school year. Public education, unlike any other public agency, receives most of its revenue based on the population it serves.The second biggest source of revenue is State categorical income that must be spent for selected State determined programs.

Federal income is a small corner of the entire district income but it is growing as new federal commitments are added

Local income includes interest earned and other small revenue sources

6

How Are Funds Allocated To Support Education?

It takes people to teach people and 86% of the District’s total expenditures are committed to the employees of the district.

Employee salaries are divided into three separate categories:

Certificated Non-Management – includes teachers, nurses, librarians and others that provide services that require credentials from the State of California.

Classified Non-Management – includes all of the support personnel such as clerical, bookkeepers, custodians, bus drivers, food service and maintenance personnel.

Management – includes superintendents, principals, vice principals and other instructional and support leaders.

7

What Method Is Used For Allocations To School Sites?

Certificated Positions: Based On Enrollment & Class Size

Classified Positions: Based On Enrollment

Supplies: Based On Enrollment

Classroom Supplies: $32- Elementary $50-Junior High

Lottery Allocation: $7 Per Student

Duplicating Allocation: $7 Per Student

First Aid Allocation: $1 Per Student

Equipment Allocation: $2,600 Plus $4 Per Student

Special Funds Are Allocated Based On Identified Students

8

What’s The Difference Between Restricted And Unrestricted?

The general fund is split between restricted and unrestricted

funds. The unrestricted general fund consists of revenue

received to run the basic educational program, offset by the

expenditures of the basic program. The restricted general

fund consists of revenue received for specific and limited

purposes, offset by the cost of those specific programs.

9

“This money is to be spent for

college, it can only be used for books

and materials”

RESTRICTED

“This money is to be spent for

college, buy anything you

need”

UNRESTRICTED

Tuition

Car

Books

Food

Clothes

Etc.

Books

Software

Paper

Pencils

Workbooks

10

How Much Money Is Left Over In The General Fund At The End Of The Year?

The ending balance consists of the following:

“Total Budget” includes the beginning balance and all anticipated income for the year. The “Ending Balance” is the resources that remain after expenditures are deducted from the total budget amount.

Beginning Balance $ 63,807,796Plus Anticipated Income $231,890,535Less Planned Expenditures ($238,005,709)Ending Balance $ 57,692,622

11

Ending Balance $57,692,622

Less Stores ($ 151,213)

Less Revolving Fund ($ 89,000)

Less Economic Uncertainties ($7,140,171)

Assigned –Potential Mid-Yr Cut ($11,796,247)

Unassigned Balance $38,515,991

12

What Other Financial Reports Are Required?

In addition to the budget, the school district’s financial records are audited on an annual basis by independent certified public accountants.

The District must file a report with the State Department of Education of all expenditures that occurred each fiscal year.

The District must also file interim financial reports twice a year with the Department of Education. These reports present the financial condition of the district and require a certification from the Board of Education as to whether all financial obligations for the fiscal year will be met.

13

What Other Financial Reports Are Required? (continued)

All specially funded programs have extensive reporting requirements that must be met.

Total expenditures related to pupil transportation must be filed annually.

All support cost expenditures must be reported.

14

What Is Encroachment?

Encroachment is the expenditure of unrestricted funds in support of a restricted program.

Funding for restricted programs such as special education and transportation is less than the expenditures to provide these mandated or court ordered services. The difference between the funding and the expenditures encroaches on the unrestricted funding.

15

Account Codes

OBJECT

Fund RESOURCEPROJECT YEAR

GOALFUNCTION

LocationDistrictCode

Unassigned

The Account Classification Is Made Up Of Different Identifying Components

16

Account Code Definition

Fund: The accounting systems of school districts are organized and operated on a fund basis. The BCSD has 12 funds.

Resource: A resource code is assigned to identify the funding source of a program

Project Year: Identifies those projects with a fiscal year that is different from the normal July-June fiscal year

Goal: Defines an objective or set of objectives i.e., regular education, staff development, special education

Function: Indicates the type of activity, i.e., instruction, administration, pupil services

Object: Classifies expenditures according to the types of items purchased or service obtained. It classifies revenues by the general source and type of revenue

Location: Identifies the site

District Code: Further identifies the object code, i.e., substitutes

17

Hills SchoolCertificated Teacher

Instruction (purpose)

K-12 Education (Objective)

Current Year (0 always indicates current year)

General Fund (fund paid from)

Extra Time

Account Classification Example

01

Title I (funding source)

3150 10000 1110 1100 018 01

18

If You Have Any Questions Or Need Additional InformationContact

Sherry GladinDirector, Fiscal Services

(661) 631-4696gladins@bcsd.com

orNatalie Sorhouet

Assistant Director, Fiscal Services(661) 631-4698

sorhouetn@bcsd.com