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DCPS Budgeting Practices

The District follows conservative and best business practices for the budgeting of our schools, which

is in line with Florida Statutes 1001.51 (11)(g), 1001.42 (12)(g) and School Board policy 7.10. All

approved expenditures within DCPS budgets are currently fully funded.

Districts who have not followed best business practices for budgeting have found themselves in

financial trouble, including DCPS in 1988. That year, the district was forced to cancel purchases due to

the misuse of lapse salaries and other unfunded expenditures in order to not finish the year in a

deficit. The following year new procedures were implemented to ensure that all future budgets will

be fully funded. This best business practice is common among other large urban districts in Florida.

Over the prior four years, the fund balance/roll forward of the District has increased from $100M to

$134M as cited in the Comprehensive Annual Financial Report (CAFR).

In 2010-11 DCPS rolled a fund balance of $164M. Of this amount, $63M is restricted as defined by thestate, leaving a balance of $101M. The increase in fund balance/roll forward was due to the District

transferring operating expenses to one-time federally funded allocations (EduJobs - $26M) proactively

anticipating the districts funding shortfall.

The projected revenue for this year (2012) is $847M plus the roll forward of $164M for a total revenue

of $1.01B which is equal to the districts total appropriations of $1.01B. The district is required to have

a balanced budget per Florida Statute. The roll forward amount is available on June 30 (last day of

fiscal year), however on July 1 (first day of the following fiscal year), that roll forward amount is

included in the total revenue for the district to balance the budget and cover all budget

appropriations. Therefore, the only funds available to help offset the budget deficit are the budgeted

fund balance of 3%, which is $26,748,559. This fund balance is the amount of money that the school

district must maintain by state law to be used only in the case of an emergency (Statute 1011.051).

However, the use of fund balance is still restricted, in that you cannot fall below a 3% fund balance

without the Superintendent providing written notification to the state.

The district anticipates the roll forward caused by lapsed salaries, vacancies, attrition and other non-

salary account balances and uses it in the budget the following year. For example a teacher leaves

his/her position in March and a substitute is used for the remainder of the year. The salary that was

budgeted for the position becomes part of the roll forward at the end of the year. The position is still

needed the next year and would be budgeted as such with a new employee being hired. Therefore,

utilizing the fund balance to cover the deficit could result in major budget reductions the following

year, a downgrade in our district bond rating and would leave no funds beyond the required 3% to

cover unexpected requirements.

Due to the aforementioned use of federal funds (EduJobs and state fiscal stabilization) no longer being

available, the district is projecting a total fund balance of $110-$120 million for 2012/2013.

Utilizing the fund balance for reoccurring expenses would not be a recommendation of the

Superintendent or Chief Financial Officer.

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Statute 1001.51 (11)(g) Duties and responsibilities of district school superintendentPayrolls and accounts. Maintain accurate and current statements of accounts due to be paid by the district

school board; certify these statements as correct; liquidate district school board obligations in accordance with

the official budget and rules of the district school board; and prepare periodic reports as required by rules of the

State Board of Education, showing receipts, balances, and disbursements to dates, and file copies of such periodic

reports with the Department of Education.

Statute 1001.42 (12)(g) Powers and duties of district school boardApproval and payment of accounts. Implement a system of accounting and budgetary control to ensurepayments do not exceed amounts budgeted, as required by law; make available all records for proper audit bystate officials or independent certified public accountants; and have prepared required periodic statements to befiled with the Department of Education as provided by rules of the State Board of Education.

SCHOOL BUDGET SYSTEM 7.10

The Superintendent shall prepare and maintain an annual District budget in the manner

prescribed by the State Board of Education. In formulating the budget, the Superintendent

shall take into consideration the immediate and long range needs of the Districts school

system and student achievement data obtained pursuant to Florida Statutes. The

Superintendent shall submit the proposed annual budget to the School Board for review. The

School Board shall adopt a balanced budget in accordance with Florida Statutes and submit it

to the State on or before the date prescribed in State Board of Education rules or established

by the Commissioner.

In order to ensure appropriate preparation and management of the District budget, theSuperintendent or designee is authorized to develop and implement appropriate budgetary

accounting and record keeping procedures consistent with mandatory federal and state laws,

rules, and regulations and with School Board rules. Such procedures shall be consistent with

good business practice.

Expenditures shall be in accordance with state law and rules of the State Board of Education.

STATUTORY AUTHORITY: 1001.41, 1001.42, F.S.

LAW(S) IMPLEMENTED: 1001.43, 1001.51, 1008.22, 1008.34, 1008.385, 1010.01, 1010.04,

1011.01-1011.18, F.S.

STATE BOARD OF EDUCATION RULE(S): 6A-1.002, 6A-1.004, 6A-1.006, 6A-1.007, 6A-

1.0071

HISTORY: ADOPTED: April 1, 1997 REVISION DATE(S): November 10, 2008

FORMERLY: DB