how to develop an award winning budget
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1
How to Develop an Award Winning
Budget
ASBO International’s
Meritorious Budget Awards Program
2
Welcome & IntroductionsPresenters
Donna Peterson, MBA Review CoordinatorBob Horwath, MBA Advisory Commitee Chair
Gary Frisch, MBA Advisory Committee Vice-ChairGeorge Lingel, MBA Reviewer
Paul Kelly, MemberDavid Means, Member
Samuel Rippin, MemberLee Legutko, Retired, MemberScott Kies, Review Coordinator
Ketul Thaker, ING, MBA Sponsor
Shirley Broz, Brian Mee, Board Liaisons
Vee Boehringer, Michelle Williams, ASBO Staff
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AgendaReview MBA Criteria Application ProcessIndependent StudyGroup Budget ReviewQ & A CriteriaReview Process-Reviewer ExpectationsEvaluation/Wrap-UpRoundtable For Questions
4
Overview of MBA Criteria
(Page numbers on following slides tie to the ASBO Publication
“Standards of Excellence in Budget Presentation”)
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General Criteria
The budget document cover contains:The title “Budget”Fiscal yearFull name of the entityCity/County of the entityState/Providence of the entity
Website address if available
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Budget Document is divided into the four major MBA sections
Consecutive page numbers
Table of Contents
General Criteria
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Budget document contains Graphs and ChartsCover letter identifies any information required by criteria that is not relevant to the school entity.Written response to previous year review team comments.
General Criteria
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General CriteriaFinal Points
Technically well prepared No spelling, grammar or math errors
Easy to read Clear understandable language
Flow in logical sequence Follow MBA criteria
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Introductory SectionExecutive Summary
The Executive Summary can be a stand alone document and presents the budget in narrative, numeric, and graphical form.
Pages 3-14
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Executive Summary
Make sure to include:All fundsKey issuesBudgeting processLead-in to other budget sections
Pages 15-59
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Introductory Section
MBA Certificate Include a copy of the Meritorious Budget
Award certificate if received for the prior year. Page 61
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Introductory Section
School Board Members and Administrators
Include a listing of members of the school board and first level administrative personnel.
Page 62-64
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Introductory Section Other Information
Build a picture of the district using varied methodsSustain reader interest, highlight major pointsExplain budget decisions and recommendations
Checklist Page14
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Organizational Section
The document should provide an explanation of the school entity which includes the following:•Legal autonomy, fiscal independence/dependence•Level of education provided•Geographic area served Pages 65-68
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Organizational Section
Number of students and number of schoolsNumber of funds and fund types and titles
Page 71
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Organizational Section
Explanation of classification of revenues/expendituresExplanation of measurement basis for budget revenues/expenditures
Pages 77-79
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Organizational Section
Budget and Financial Policies
Include significant budget and financial policies, rules, procedures, and regulations at the legal, board, and administrative levels.
Pages 81-90
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Organizational Section
Organizational Chart Include an organizational chart which includes the administrative
staff by position or title.
Pages 91-97
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Organizational Section
Mission Statement Include a coherent statement of the
mission of the school entity.
Page 98-100
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Organizational Section
Major Goals and Objectives
Include the major goals for the school entity. If the cost of a goal or objective is significant and measurable, include the cost.
Pages 101-120
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Organizational Section
Operating and Capital Budget Process
Describe the budget development process and timeline including capital.
Pages 120-130
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Organizational Section
Budget Administration and Management Process
Describe the budget administration and management process. Pages 131-137
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Financial SectionThe “Heart” of the Budget Document
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Financial Section
All governmental fundsAll proprietary fundsLevel of detail required by law or adopted by the governing body
Pages 139-160
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Financial SectionRevenues by sourceExpenditures by function and object Comparative
Pages 143-154
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Financial Section
A pyramid approach should be used. This is a summary of all
funds, followed with the presentation of individual funds.
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Financial Section
Pyramid Approach
Optional: The presentation may be followed by program, location, and/or administrative unit budgets.
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Financial SectionFund balancesRevenuesExpendituresChanges in Fund balances
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Financial Section
Other financing sources/usesThe current year budget or estimated current year actualThe proposed budget year
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Financial Section
Three prior years of actual data is preferred in the Financial Section. The information may be presented in the Informational Section in a form and format which is comparable to the current year and proposed year.
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Financial Section
Budgeted capital expendituresMajor capital projects for the budget year (whether authorized in the operating budget or in a separate capital budget).
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Financial Section Describe to what extent capital
improvements or other major capital spending will affect the school entity’s current and future operating budgets.
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Financial SectionFocus on reasonably quantifiable additional costs and savings (direct and indirect) or other service impacts that result from capital spending.
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Financial Section
Include financial data on current debt obligations.Describe the relationship between current debt levels and legal debt limits.
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Financial Section
Explain the effects of servicing debt levels on current and future budgets.
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Informational Section
Present the assessed value of taxable property
and the market value of taxable property for: A minimum of three years actual Current year budget and/or estimated current
year actualThe proposed budget year
Pages 174-
186
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Informational Section
Calendar Year
Fiscal Year Market Value
District Assessed Value
% Increase in Assessed
Value2002 2002-2003 7,015,660,839 2,338,553,6132003 2003-2004 7,324,028,445 2,441,342,815 4.40%2004 2004-2005 8,105,046,993 2,701,682,331 10.66%2005 2005-2006 8,642,540,676 2,880,846,892 6.63%2006 2006-2007 9,054,472,803 3,018,157,601 4.77%2007 * 2007-2008 10,087,602,812 3,362,534,271 11.41%2008 * 2008-2009 10,670,363,697 3,556,787,899 5.78%2009 * 2009-2010 10,940,724,114 3,646,908,038 2.53%2010 * 2010-2011 12,145,924,393 4,048,641,464 11.02%2011 * 2011-2012 12,788,640,432 4,262,880,144 5.29%2012 * 2012-2013 13,081,009,792 4,360,336,597 2.29%
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Informational Section
Include property tax rates and collections for: A minimum of three years actual The current year budget and/or estimated current
year actual The proposed budget year Describe the tax rate relationship versus taxable
value
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Informational Section
Include an analysis of the budget’s effect on taxpayers for:Minimum of three years actualCurrent year budget and/or estimated current year actualProposed budget year
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Informational Section
Provide five-year summary comparison of revenues and expenditures (three prior years actual, current year budget and/or estimated actual, and the proposed budget year). If the three prior years actual data is presented in the Financial Section, this presentation is not required.
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Informational Section
All years must be presented in a comparable form and format, whether presented in the Financial or Informational Section
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Informational Section
Five-year summary must be presented for all governmental funds. (Presentation of similar data for other funds is optional.)
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Informational Section
Three years of budget forecasts for all governmental funds. Three year historyCurrent budgetThree year forecasts
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Informational Section
Include revenues, expenditures and beginning and ending fund balances. Forecasts for non-governmental funds is optional.
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Informational Section
The document should present:A minimum of three years of actual student enrollment history by schoolCurrent budget and/or estimated current year enrollmentProposed budget year enrollmentA minimum of three years of enrollment projectionsEnrollment forecasting methodology and techniques
Pages 207-218
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Informational Section
Present personnel resource allocations for:
Minimum three prior years actualCurrent year budget and/or estimated current year actualProposed budget year
Page 219-229
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Informational Section
Include the bond amortization schedule(s) of the school entity.
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Informational Section
Provide performance measures for three prior years such as:
Standardized test scoresDrop-out ratesAccomplishment of goals and objectivesParent/student satisfaction surveysOther performance measures
Pages 234-261
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Informational Section
ISAT Performance History 1999 - 2007MATHEMATICS
Percent of District 220 Students Meeting and Exceeding State Standards
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9390
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94 93
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9896
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1999 2000 2001 2002 2003 2004 2005 2006 2007
Grade 3 Grade 5 Grade 8
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Informational Section
Include other information that would help the reader understand the past and future directions of the school entity.
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Informational Section
Include a glossary of terms to improve understanding.
Pages 276-282
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Application Process
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Applicants of the Program
Any school entityEducational service agencyPrivate schoolCollege or universityMembership with ASBO International not required
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Criteria Location Checklist
The final document is not complete until applicants review their budget against the criteria using the checklist and adjust if necessary.
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Criteria Location Checklist
Applicant lists the page number(s) where each of the criteria are satisfiedReviewers rely on checklist to evaluate the budget
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Application MaterialsApplication and PaymentCover letter explaining criteria not relevant to the school entityFour copies of the budget if hard copyFour copies of the checklist if hard copyFour copies of written response to each of the previous year reviewer comments
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Application Materials
Budgets should be submitted in the same form in which they are approved
Applicants are discouraged from submitting supplemental materials
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Application Deadline
Submitted within 90 days of FINAL legal adoption dateAdoption processes may include several datesMay not be submitted prior to final adoption
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Receiving the Award
Notification of the award and confidential comments.
Continuing education credit in ASBO’s Professional Registration Program.
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Receiving the Award
Notification sent to the Superintendent and School Board.
A personalized award plaque and certificate.
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Receiving the Award
Recognition in ASBO Membership Directory, Accents Online, ASBO Affiliate newsletters and ASBO’s Web site
News release for the local media
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The award is granted for only one year.
Encourages applicants to apply every year.
MBA Award
Presented To
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Criteria and budget documents are not static.
Real excellence is achieved through the perennial award.
MBA Award
Presented To
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Denial of the Award
Notification is sent only to the applicant with confidential comments.
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Conditional Award
Warning that they have not followed program criteria
Still receive recognition of award
Must make reviewer changes or may not receive award in the future
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Appeal Process
Within 30 days, a school entity may appeal the decision. Materials sent to Appeal Review Team.Process takes approximately 90 days.
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Questions and Answers Regarding General Criteria
and Budget Document Sections
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Independent Study of Budget
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Group Budget Review
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Questions and Answers Regarding Criteria
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MBA Review Process
“The reviewer comments rank as the number one benefit of participation”
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Budget ReveiwReviews take 3-4 months
Completed by professionals skilled in evaluating school budgets
Includes comprehensive comments
Reviewers make final recommendation
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What Reviewers Expect
Document satisfies MBA criteria (not all budgets satisfy every criteria)
A cover letter to include:
a)List and explain any exceptions to the MBA criteria
b) If any previous year reviewer recommendations were not incorporated in the current document and why
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MBA Reviewers’ Responsibilities
Follow criteria, make written comments
Evaluate whether failure of document to meet any one or a combination of criteria is sufficient to deny an award
Detail reasons for conditional award or denial
Refrain from personalized comments
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Complete Workshop Evaluations
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Roundtable for Questions
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MBA Award Winning Budgets
Sample budgets are available. Visit ASBO’s Web site for more information.
www.asbointl.org
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ASBO International11401 North Shore Drive
Reston, VA 20190
(703) 708-7067
williamsmd@asbointl.org
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