School FinanceIntroduction
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“Line Item” ComponentsBudget ReportsBudget Adjustment Requests (BAR’s)Council Meeting ReportsOther Duties of the CouncilTips for Financial Oversight
LINE ITEMS
XXXXX . XXXX . XXXXX . XXXX . XXXXXX . XXXX . XXXX
Fund Function Object Program Location Job Class Data
28 DIGITS
What are line items?Fund Function Object Program Job class
11000 1000 51100 1010 1411Funds:11000 – State Equalization Guarantee – generated by # of Students, a grade level weighting factor and Unit values (dollar amount)14000 – Instructional Materials – textbooks, materials and supplies24106 – Special Education – generated by the number of students with special needs and the levels of service that is written into their IEP; flows through the Aztec School District27106 – Student Library Funds - from sale of 2010 GO Bonds at the state level27114 – NM Read to Lead K-3 – PED initiative to improve student reading skills26170 – Non-recurring vouchers awarded by the Attorney General as a result of a settlement with Microsoft. There is slightly over $7,000 left in this fund31200 – Lease reimbursement Grant – generated by the number of students enrolled on the previous year’s 40th day count multiplied by a set dollar value31700 – Small guaranteed funding per student; PLUS, new this year, our share of the property taxes collected from residential and business owners. Equipment/software for student use.
What are line items?
Fund Function Object Program Job class
11000 1000 51100 1010 1411
Functions:1000 –Instruction – includes all expenses that specifically involve instruction of students in the classroom2000 – Support Services – includes expenses incurred in the support of classroom instruction3100 – Food Services to students4000 – Facilities Acquisition and Construction
These are required reporting codes – additionally, under the 2000 and 4000, there are further breakdowns of expenditures to reflect exactly where those funds are going.
For instance: 2100 – attendance, counseling, health, speech; 2200 – library, testing, technology; 2300 – audit, council expenses; 2400 office of the principal, etc.
The PED requires that we report expenditures only to the second digit of the function code.
What are line items?
Fund Function Object Program Job class
11000 1000 51100 1010 1411
Object: (WHAT is being purchased)Describes the expenditure. For instance – salaries, supplies, small assets, software, construction, other contract services, etc.
Program: (WHO is benefiting from the purchase)General education students, special education students or no specific group of students
Job class: (What POSITION is being paid a salary)Teacher, teaching assistant, clerical, substitute for sick leave, substitute for professional development, etc.
Line items allow us to track expenditures for the purpose of budgeting and ensuring that funds are being expended in support of the goals and needs of the students of the school.
Budget Rollup Report
GL Account Description Budget YTDExpend Encumbrance Budget Bal
11000-1000-51100-0000-000000-0000-0000 SALARIES EXPENSE 522,889.00 1,187.50 511,780.54 9,920.96
11000-1000-51300-0000-000000-0000-0000
ADDITIONAL COMPENSATION 9,400.00 .00 .00 9,400.00
11000-1000-52111-0000-000000-0000-0000
EDUCATIONAL RETIREMENT 56,490.00 138.34 1,980.21 54,371.45
11000-1000-52112-0000-000000-0000-0000 ERA RETIREE HEALTH 6,304.00 15.44 159.14 6,129.42
11000-1000-52210-0000-000000-0000-0000 FICA PAYMENTS 30,063.00 73.63 1,020.42 28,968.95
11000-1000-52220-0000-000000-0000-0000 MEDICARE PAYMENTS 7,032.00 17.22 238.65 6,776.13
11000-1000-52311-0000-000000-0000-0000
HEALTH & MEDICAL PREMIUMS 83,241.00 .00 .00 83,241.00
11000-1000-52312-0000-000000-0000-0000 LIFE 702.00 1.36 15.14 685.50
11000-1000-52313-0000-000000-0000-0000 DENTAL 5,284.00 .00 .00 5,284.00
11000-1000-52314-0000-000000-0000-0000 VISION 827.00 .00 .00 827.00
11000-1000-52315-0000-000000-0000-0000 DISABILITY 71.00 .00 .00 71.00
11000-1000-52500-0000-000000-0000-0000 UNEMPLOYMENT 7,922.00 6,055.85 .00 1,866.15
Budget Adjustment Request (BAR)
BUDGET = PLAN FOR SPENDING
So what happens if, in our best planning efforts, we cannot foresee what line items we will actually need or how much we might need in a specific line item. When a line item does not have sufficient budget to support needed expenditures, then a Budget Adjustment Request must be submitted to the Council for approval. If the request is within the same function, it does not require PED approval – only Council approval.
This is often called a “Maintenance BAR”
PED Budget Adjustment Request
If we are requesting to move funds from one function to another, we must first obtain Council approval and then submit to the PED for their approval. PED has 30 days to provide approval of the request.
If additional funding becomes available or if we are notified of a decrease in funding, we are required to correct our budget through this process as well.
A BAR that is submitted to the PED for approval will look similar to this.
Governing Council Financial Documents
In your Council Packet you will see the Budget rollup report, both Revenue and Expenditure
Includes % Remaining Column to far right
Accounts Payable Check listing
Payroll Check listing
Bank Reconciliations
Bank Statements for all three accounts
Operational Account – revenue for all funds is deposited here
Accounts Payable Clearing (zero balance) Account – used to process checks written to pay vendors
Payroll Clearing Account – used to process all payroll expenses
Any maintenance or PED BAR’s being requested
Bank Documents
MOSAIC ACADEMY CHARTER CHECK LISTING
Bank ID: CB Bank Account: 0198780106 From: 8/1/2008
To: 8/31/2008
Bank Name: Accounts Payable Clearing
Number Date Payee Amount Voucher StatusCleared Check Type
1724 08/08/2008 AZTEC HARDWARE CO $54.00 1003Printed Expense
1725 08/08/2008 AZTEC MUN.SCH TRANSPORTATION $378.80 1003Printed Expense
1726 08/08/2008 BILL IRWIN $193.73 1003 PrintedExpense
1727 08/08/2008 CITY OF AZTEC $537.23 1003 PrintedExpense
1728 08/08/2008 HA ELECTRIC PLUS INC $2,160.69 1003Printed Expense
1729 08/08/2008 PUERTA DOOR & HARDWARE INC. $107.00 1003Printed Expense
1730 08/08/2008 SCHOOL SPECIALTY $12,049.35 1003 PrintedExpense
1731 08/08/2008 STONE MOUNTAIN FLOORING $228.22 1003Printed Expense
1732 08/08/2008 The Barnyard $150.00 1003 PrintedExpense
1733 08/08/2008 TNT $841.26 1003 PrintedExpense
1734 08/18/2008 ARID MECHANICAL, INC, DBA $229.37 1004Printed Expense
1735 08/18/2008 BODE ELIZABETH D.$275.00 1004 PrintedExpense
1736 08/18/2008 CITY OF AZTEC $3,731.48 1004 PrintedExpense
1737 08/18/2008 CRANE & SONS $9,233.00 1004 PrintedExpense
1738 08/18/2008 HA ELECTRIC PLUS INC $1,851.50 1004Printed Expense
1739 08/18/2008 J&T Distributing Co., Inc. $49.30 1004Printed Expense
1740 08/18/2008 KNIGHT, AMANDA $275.00 1004 PrintedExpense
1741 08/18/2008 SCHOOL SPECIALTY $1,983.60 1004 PrintedExpense
1742 08/18/2008 WILLIAMS SCOTSMAN INC. $1,251.16 1004Printed Expense
1743 08/19/2008 WILLIAMS SCOTSMAN INC. $7,462.84 1005Printed Expense
1744 Printed
Check Listing
Bank Statements
Bank Reconciliation
Bank Statements
The bank statements are now received electronically and transmitted digitally to the contracted Business Manager. This process allows us to reconcile our accounts much more efficiently and timely.
The Aztec Municipal School District Business Office also transmits our SEG payment electronically; which provides us with quicker access to the major source of our funding.
OTHER DUTIES OF THE COUNCIL
Serve on the Audit Committee Participate in the selection process for hiring an auditor
Meet with auditors
Gain an understanding of the audit process and the audit report itself
Serve on the Finance Committee Periodically report the financial stability of the Charter to the
full Council
Periodically report the efficiency of the organization to the full Council
Serve on the budget committee
Oh, No !!
This is a lot to be responsible for !!
TIPS FOR FINANCIAL OVERSIGHT
Financial Document
Check Listings
Bank Reconciliations
Budget Reports
Budget Adjustment Requests (BAR’s)
Missing check numbers, unfamiliar vendors
Pending transactions, cash availability
Deficit accounts; %
Charter goals
Watch For
ADDITIONAL THOUGHTS
Ask questions Question vendors on the check list that you don’t recognize
Question checks to individuals that are for large amounts
Question recurring checks to a particular individual – whether large or SMALL
Question movement of cash from one bank account to another
Question “stale” adjusting entries on the bank reconciliation
Question stale dated outstanding checks
Question how the BAR’s affect the accomplishment of Council goals
ADDITIONAL TIPS
Occasionally Ask us to show you the security available in the accounting
software that decreases the opportunity for fraud
Ask to see manual journal entries and the backup documentation
Ask to see documentation for movement of cash
Ask to see original request form for a particular purchase
Ask to see documentation of best obtainable price
Ask to see documentation that supports control over cash up to point of deposit
Ask to see documentation that supports control over a fundraising activity
Ask to see documentation that shows importance of safety during a field trip
Ask to see the original void check and backup for the void
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