1

Fiscal Analysis:

Key Strategies for Optimizing Resources

Integrated Service Center (ISC)December 2007

New York City

Department of Education

A Webcast Presented by:A Webcast Presented by:

2

ObjectivesTo build capacity at the school to:

1. Analyze the budget continually to identify available funds & possible uses, in accordance with guidelines.

2. Guide the principal and School Leadership Team in optimizing the utilization of the school budget to meet programmatic needs, in adherence to deadlines.

3

1. Know Your Budget2. Know Your Guidelines3. Know Your Needs 4. Know Your Fiscal Deadlines5. Know Your Expenditure

Plans

Key Strategies

4

1. Know Your Budget

1. Galaxy Tips

2. Mid Year Adjustment

3. Surplus Rollover

4. Reimbursable Allocation Categories

5

Galaxy Tips

• A/C TotalsDo you have any unscheduled funds in any Allocation Category?

If yes, schedule the funds.

• VacanciesDo you have continuing vacancies?

If yes, remove vacancies you do not intend to fill. For those to be filled, adjust start dates to release funds to be scheduled.

• Bulk JobsDo you have sufficient funds scheduled to meet projected needs for planned per session & per diem activities?

If Yes, monitor & aim to identify any surpluses that may develop, which can then be released through budget modification & redirected.

If No, modify the budget to add funds where needed.

6

Galaxy Tips - Continued• OTPS

Are your scheduled OTPS items in alignment with your OTPS expenditure plan emanating from your CEP? Correct Categories? Correct Amounts?

If no, modify the budget accordingly.

• Reimbursable A/CsAre items funded with reimbursable A/Cs consistent with the underlying guidelines & CEP?

If no, modify the budget accordingly.

• Anticipated FundsDo you have any personnel planning to retire, take a leave, sabbatical, etc.?

If yes, consider future plans for deployment of these funds.

7

Mid Year Adjustment: Register Growth and Loss

Early in 2008, the school’s initial budget, based on the projected register, will be adjusted upward or downward, to reflect the audited 10-31-07 general education register.

Register Growth: If the audited 10-31-07 register exceeds the projected

number in the FY 08 allocation, the school will receive additional funds in the TL Fair Student Funding A/C in the midyear adjustment.

Schools which expected a higher register may have requested Additional Spending Authority (ASA) from the ISC.

ASA funds are considered a loan, in anticipation of register growth, to be repaid at the time of the midyear adjustment.

8

Register Loss:

If the audited 10-31-07 register is below the projected number in the FY 08 allocation plus any number granted for ASA, the school will lose funds in the TL Fair Student Funding A/C in the midyear adjustment.

The school will be accountable for:• the full amount of any ASA granted for students not reflected in the audited register, plus • the full amount of the reduction associated with the difference between the DBOR original projection and the audited register.

The ISC Officer has conferred with each principal regarding the expected audited register, register loss & setting up a line item in the school’s budget for an amount equal to the estimated mid-year budget adjustment due to register loss.

If the # gr. 3 students in the audited register is lower than the initial projection, while the gr. 4 register is higher due to promotion of gr. 3 students since the time of the initial register projection, the school will lose money in the midyear adjustment due to the lower funding level for grade 4 (32/class, not 25/class).

Mid Year Adjustment: Register Growth and Loss

9

What is Adjusted at Mid-Year?

• All schools are adjusted for grade per capita weight, SETTS and Multiple SETTS.

• High Schools are additionally adjusted for CTT and Self-Contained weights.

• New Schools are also adjusted for CTT and Self-Contained weights.

10

Surplus Rollover Program (Tax Levy)

If a Tax Levy Surplus Rollover program is announced for rollover of Surplus Tax Levy funds from FY 08 to FY 09, specific criteria will apply in order to participate.

11

Prior YearSurplus Rollover Program Guidelines(For Reference)

• No allocation categories in deficit• No Per Session/Per Diem/F-Status bulk jobs in deficit• No OTPS items with overcommitted amounts • No persons without jobs appearing in the myGalaxy

infolink• No B-Segments using ASA HH funding [exceptions:

Long Term Absence, Leave with Pay, Pending Line of Duty, Reassigned Pending Investigation]

• No items scheduled using ASA AA funding • No item using ASA-Centrally Funded Excess Staff• No item using ASA-Returns from Reassignment

ManagementTool

12

REIMBURSABLE ALLOCATION CATEGORIES (A/C)• Reimbursable Allocation Categories (A/C) correspond to

reimbursable fund sources, each of which is designed to support a supplemental program in the school.

• For each Reimbursable A/C, the school must have an acceptable supplemental program described in its CEP.

• The services scheduled in the budget must be consistent with the program defined in the CEP and adhere to the guidelines for the fund source underlying the Category – purpose and allowable expenditures.

• Each employee charged to a reimbursable A/C must be the person performing the responsibilities associated with the underlying program.

• All OTPS and personnel expenditures must be consistent with the CEP & fund source guidelines.

13

Review

Question and Answer Period

14

2. Know Your Guidelines1. Budget

• Division of Budget Operations and Review/School Allocation Memorandum

• Reimbursable Handbook• Title 1 Mandates

2. Payroll• Principal Per Session• Timekeeping

3. Procurement• Professional Services• Commodities• P-Card

SOP

http://dfoapps.nycenet.edu/SOP/

15

School Allocation Memorandum (SAM)

The Division of Budget Operations and Review (DBOR) is responsible for overall management of the school system's financial resources to support policy directions set by the Chancellor and the Department of Education.

This includes: Allocating Funds to Schools and Offices, Citywide Special Education Programs and Central Offices.

These allocations descriptions can be found at:http://schools.nyc.gov/offices/d_chanc_oper/budget/dbor/allocationmemo/fy07_08/AM_FY08_COVER.html

Budget

16

Reimbursable HandbookThe Reimbursable Handbook is designed as a tool to assist Principals and School Leadership Teams in the appropriate use of reimbursable dollars.

Reimbursable funding:

• Allocative/Formula Grants – Funds are allocated using formula based on specific populations or needs.

• Competitive/Discretionary Grants – Funding awarded based on a submission of a successful grant proposed and approved budget narrative.

The Reimbursable Handbook can be found at:http://schools.nyc.gov/NR/rdonlyres/5B472E25-7EA1-4850-95A9-DB600543F91B/27043/Reimbursablehandbook707.pdf

Budget

17

TITLE I ALLOCATION CATEGORY - Mandates

Plan to expend all Title I funds in FY 08.There will be no rollover of unexpended funds.

Each Title I school has scheduled funds as follows:

10% - professional development

5% - highly qualified

1% - parent involvement

FOR TITLE I SET-ASIDE: 1% - PARENT INVOLVEMENT:

A proposed spending plan & budget is developed by the Title I parent organization in the school (i.e., PA/PTA or PAC).

The Principal reviews it for approval in consultation with the SLT.

Document: Notice of meeting, agenda, attendance record, & minutes

Budget

18

Title I – Schoolwide Program

Title I Schoolwide Programs is used to support allstudents to meet high academic standards, with anemphasis on students who score at level 1 or 2 on state exams.This allocation can be used to fund:

• Additional teachers to reduce class size

• Provide supplementary intervention services

• Before/after school academic programs

• OTPS items to support before/after school programs

• 50% of an assistant principal’s salary can be funded when the assistant principal provides supervision in the areas of English, reading, mathematics, science or social studies

Budget

19

Title I Targeted Assistance funds can only fund supplemental intervention services or OTPS items for students who are academically at risk (at level 1 or 2). These funds may not be used to serve all students.

Additional Guidelines:

• Can not be used to reduce class size • Can not fund an assistant principal’s salary

Title I – Targeted Assistance

Budget

20

• PRINCIPAL PER SESSION LINE -- SUPLS, #2782 --- must be used for principal per session.

• The “Per Session Activity Online Screen” in the FAMIS Portal will allow a principal to request approval to perform a per session activity.

• Once you submit the required information, your request will be automatically e-mailed to your community superintendent for approval.

If a request requires a waiver approval, it will be electronically sent to the Division of Human Resources for appropriate

action.

• Once approved, the payroll secretary may enter time in T-bank using the PR code.

Principal Per Session

NOTE: This screen is currently for school-based programs only and that all principal per session activities are capped at 400 hours.

Payroll

21

Timekeeping• Maintain a written timekeeping policy, specifying procedures for

monitoring and recording employees’ daily arrival, departure, absences and latenesses.

• Maintain a written organization sheet/chart.

• Record absence, lateness and early departure for pedagogues in EIS.

• Cancel Direct Deposit of employees who are going to be on unpaid leaves, terminated or retired.

• Immediately notify the Human Resources Partner to remove from payroll those employees who are on unpaid leave of absence or have left service through termination, resignation or retirement.

• Itinerant Employee: Transmit the employee’s time record to the payroll location (biweekly) to ensure that employees’ time balances are current.

• Return undistributed checks to the Bureau of Check Management within three (3) days of issuance (each check requires an undistributed paycheck form). Maintain an undistributed paycheck log for tracking purposes.

Payroll

22

Professional ServicesProfessional Services: Non-contracted Items

• Increased Professional Services Threshold: The Competitive Proposal limit for orders to Non-Contracted vendors has been increased to $25,000.

• Non-Competitive/Sole Source: Purchase orders up to $25,000 may be processed by schools.

• Non-Competitive/Sole Source: Purchase orders above $25,000 require approval by ISC and DCP.

• For any order to a non-contracted vendor, $10,000 and above, a pre-encumbrance is required.

NOTE: Principals are required to document their selection process and choice of vendor in conformance with the “Best Value” standard, as set forth in the SOPM.

Procurement

23

Commodities• Commodities – Non-Contracted Items

• 0 - $250: No bids • $250 – $5,000: Three (3) telephone and/or written bids• $5,000 – $15,000: Three (3) written bids• $15,000 - $100,000: The request must be sent to DCP, who

will conduct a public solicitation for the goods. Contact the ISC Representative to seek assistance.

• Over $100,000: The school must request via the ISC Rep for DCP to assist in the preparing and processing of a Request for Bid (RFB); or, if applicable, request the ISC to submit a request for sole source approval or exception to bid to the Committee on Contracts

Procurement

24

P- Card Increased Purchasing Limit & Functionality

Single Transaction: P-Card limit for schools has been increased from $2,500 to $5,000 per single transaction

Total: The school may encumber up to $15,000 at a given time on the P-Card Approval is required by the ISC for additional encumbrances.

Multiple Object Codes (100, 300, 400 & 451) on a Single P-Card: The encumbrance may be against multiple object codes, based on projected spending.

FAMIS Onscreen Expense Reporting and Certification: Principals will be asked to certify on-line the breakdown of actual expenditures by object codes; automatic budget modifications will occur as a result, if required.

NOTE: All applicable regulations and procedures still apply. To obtain a P-Card, schools must complete the on-line application in the FAMIS portal.

Procurement

25

Review

Question and Answer Period

26

3. Know Your Needs

1. Review and Realignment of Budget

• Personnel – Vacancies • Bulk Jobs – Per Diem/Per Session• OTPS

2. Bulk Job Forecasting

27

Review andRealignment of Budget A/C Totals – review and ensure all funds are fully

scheduled Vacancies and adjust the start date. F-status Per Diem (8 days x number of mandated teaching

positions Per Session – Number of teachers x hours x number of

days OTPS – ensure all funds are in desired object code

before the budget modification deadline. P-Card balance and ensure all funds will be exhausted

by 6/30/08

28

Bulk Job ForecastingForecast and schedule the total amount needed through June 30th by projecting total cost.

EIS – SCREEN 12.4 shows actual expenditures to date and balances. Option 12 – Payroll Accounting Option 4 – Bulk Job Inquiry Screen

This screen allows a school to quickly monitor any bulk job (school aide, para, sub para, sub school aide, prep periods, per session, per diem, f status) on their TO.

Job Cost (Allocation) - Expenditures = Available Balance. Note: This screen updates much quicker than Galaxy;

approximately a few days after payrolls run.

ManagementTool

29

Review

Question and Answer Period

30

4. Know Your Fiscal Deadlines

1. Calendar of Deadlines

2. NYS Funds

3. P-Card

31

Calendar of DeadlinesBudget, Procurement and Payroll

Budget Surplus Rollover {if announced}

Expected-early March

Budget Mod Close Mid March

Competitive Grants Rollover (if applicable)

Mid May

Procurement Furniture, Computer, Hardware, Security Device

Expected-end of March

FAMIS Portal/E-Catalog orders Mid April

Balance on P-Card to zero June 30

Delivery of Goods and Services

June 30

SIPP Entry June 30

Certify Delivery On-line Immediately

ManagementTool

32

Calendar of Deadlines (continued) Payroll

Payroll Enrollment or Changes to Direct Deposit

May 1

Q-Bank Payroll Close End of May

E-Bank Close End of May

H-Bank and Z-Bank Close End of June

33

NEW YORK STATE FUNDS -NYSTLNEW YORK STATE FUNDS -NYSTLDo you have balances?Do you have balances?

• Textbooks• Library Books• Computer Hardware• Computer Software

Encumber early to ensure timely delivery and optimal usage to benefit student achievement in this school year.

Funds not expended in this fiscal year will be lost!

34

PROCUREMENT CARD

PURCHASES & DELIVERY OF GOODS USING THE PROCUREMENT CARD ARE COMPLETED BY June 30th.

After June 30, any balance remaining on the card will be lost to the school.

In Galaxy the line item for the Procurement Card will appear as fully committed

Keep your receipts for all purchases & a procurement log

Refer to the SOPM for a sample log (Exhibit K).

Compare to the monthly bank statement.

35

Review

Question and Answer Period

36

5. Know Your Expenditure Plans

1. Expenditure Plan Components (Keep calendar of deadlines in mind)

2. Select the Procurement Method

3. Monitor Open Items

4. Certify Delivery On-line promptly

37

EXPENDITURE PLAN

What resources are available byAllocationCategory?

Amount?$$$$

What is the Source?

How will the funds be used?

Budget Mod?If yes, when will it be processed?

WhichProcurement Method?

When?Before the deadline & timely

TL FSF

Plan to utilize available resources in a timely way.Plan to utilize available resources in a timely way.

* Source• Unscheduled Lump Sum• Vacancy not yet filled --- Change start date to release funds to lump sum.• Per Session Balance not needed – Modify - release funds to lump sum & schedule

new item.• Per Diem Balance not needed --- same as above• OTPS Balance not needed --- same as above** REMINDER: Make changes to CEP, as necessary.

* Source• Unscheduled Lump Sum• Vacancy not yet filled --- Change start date to release funds to lump sum.• Per Session Balance not needed – Modify - release funds to lump sum & schedule

new item.• Per Diem Balance not needed --- same as above• OTPS Balance not needed --- same as above** REMINDER: Make changes to CEP, as necessary.Management

Tool

38

Select the Procurement Method

• FAMIS Portal/E-Catalog• P-Card• SIPP

Timing:

Assure that you plan to expend, using this method, before the applicable deadline.

39

MONITOR OPEN ITEMS

OPEN ITEMS: Encumbered purchase orders for which delivery has not yet been made or delivery has been made, but payment not yet processed pending confirmation of delivery.

Do you have orders for which delivery has not been made? Contact the vendor. Will delivery be made on schedule (before June 30)? Is the promised delivery date before June 30 & still acceptable to still

ensure provision of the required services? If not, cancel the order, thereby releasing the funds. Send the vendor

written confirmation of the cancellation. Encumber the funds to an alternate vendor who can deliver on time or redirect the funds to other purposes, as directed by the principal.

40

Inquiry• Spending Plan Inquiry• Document Inquiry• Open Document Inquiry • Vendor Inquiry

MONITOR OPEN ITEMS IN FAMIS

http://dfoforms.schools.nyc.gov/portal

Use the FAMIS Portal Inquiry Function

Payments have not yet been made. If the order was delivered, did you certify delivery on-line?

41

Certify Delivery On-line Promptly• Immediately upon receipt of the goods or services ordered, verify

consistency with original order.

• If all goods or services have been delivered to satisfaction, a copy of the order is to be signed and dated by a school official, other than the person who initiated or prepared the order, to certify delivery.

• Retain this record of certification of delivery, along with all packing slips & other vendor documents included in the package, on file at the school (attached to the original order).

• THEN CERTIFY DELIVERY ON-LINE in the FAMIS Portal (under Purchasing/Payments). Enter the “received date” & name of the person who examined the shipment (different from the person who prepared the order).

42

ManagementTool

Mid-year FISCAL ANALYSIS/PLANNING GUIDE

1. Know Your Budget2. Know Your Guidelines3. Know Your Needs 4. Know Your Fiscal Deadlines5. Know Your Expenditure Plans

Align and optimize resources

43

Review

Question and Answer Period

Challenge Quiz

44

For assistance…..

Contact the Integrated Service Center

ISC Officer Lead Customer Service Manager Deputy Executive Director for Business

Refer to the contact information provided by the ISC location that services your school.

Refer to the contact information provided by the ISC location that services your school.

45

Evaluation

• On-line• http://

www.zoomerang.com/survey.zgi?p=WEB2278FFBCD5U

Thank you for participating in our Webcast.