school finance 101 2015-2016 presented by school fiscal services at ld northwest:

School Finance 101 2015-2016

Presented by School Fiscal Services at LD Northwest:

Introduction

School Funding Sources

Special Policies/Procedures

Budget System & Structure

Budget Process

Budget Management

Commonly Used Budget Reports - SFE

Agenda

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INTRODUCTION

The objective of this training is to provide an understanding of school finance.

This training will provide an overview of the various budget resources available, to help you manage your schools’ budget.

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SCHOOL FUNDING

The two primary funding sources are: Unrestricted Funds Restricted Funds

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• Local Control Funding Formula (LCFF)– General Fund School

Program– Supplemental &

Concentration Grants– Add-on Grants

• Donations

• Specially Funded Programs:– Categorical Programs (Title I)– Grants

• Special Education• Cafeteria

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Unrestricted Restricted

School Funding Resources

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What is Local Control Funding Formula?

LCFF is California's new formula for determining the level of state funding provided to districts.

Districts will receive: Base Grant Base Grant Adjustments Supplemental & Concentration Grants Transportation & Targeted Instructional Improvement Block Grant

The LCFF consolidated the majority of the categorical programs, thereby eliminating the spending restrictions.

The Local Control Accountability Plan (LCAP) is the plan on how districts are held accountable for using LCFF funds and supporting targeted youth.

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Base Grant by Grade spans: K-3, 4-6, 7-8, 9-12

Base Grant Adjustments Additional funding for K-3 class size reduction (10.4%) and Career Technology

Education (CTE) for grades 9-12 (2.6%)

Supplemental Grant Base Grant times 20% of the Unduplicated Pupil Percentage (UPP*)

Concentration Grant Base Grant times 50% of the UPP in excess of 55%

Add-ons Targeted Instructional Improvement Block Grant (TIIBG) Home-To-School Transportation

*UPP-Percent of unduplicated pupil count to total enrollment (average of three fiscal years)

Components of LCFF

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Variable: UNDUPLICATED PUPIL COUNT /PERCENTAGE

What is Unduplicated Pupil Count?• FRPM (Free and Reduced-priced Meal)-eligible• EL (English Learner)• Foster Youth•A student can only be counted once even if he/she is identified as more than one of the categories above. It is also called Targeted Student Population (TSP).

What is Unduplicated Pupil Percentage (UPP)?Percent of Unduplicated Pupil Count to enrollment

How do we calculate UPP for LCFF purposes?Total 3-year UPC / Total 3-year enrollment; 3-year rolling average

What part does it play in the LCFF?Generates the Supplemental and Concentration Grants

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Definition – The portion of LCFF revenue that is based on ADA times the rates per ADA. This funds the operational costs of the District and can be spent on ALL students, employees, benefits, books and supplies, contracts, and infrastructures/facilities.

Component: BASE GRANT

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Component: SUPPLEMENTAL GRANT

Definition – In addition to Base Grant; this is based on the UPP and is intended to be spent on the Targeted Student Population (TSP).

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Component: CONCENTRATION GRANT

Definition – In addition to Base Grant; this is based on the UPP that is in excess of 55% of enrollment; intended to be spent on the Targeted Student Population (TSP)

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Component: ADD–ON FUNDING

• Funding for the Targeted Instructional Improvement Block Grant (TIIBG) and Home-to-School Transportation

• Constantly Funded at the 2012-13 level; no COLA applied

• LAUSD add-on funding– TIIBG $460.4 million– Home-to-School Transportation $77.6 million

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Base Grant Base Grant Base Grant

Supplemental Grant

Supplemental Grant

Concentration Grant

The District receives a Base Grant for every student.

The District receives a Supplemental Grant for every high-needs student.

The District receives a Concentration Grant for every high-needs student over 55% total enrollment.

Add on Add on

LCFF – How the State funds Districts

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The District’s full LCFF revenue, including Base, Supplemental, Concentration, TIIG and Transportation funds.

Calculating Revenue

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Calculating Revenue

LCFF-generated revenue is divided by the District-wide Average Daily Attendance (ADA) to determine LCFF revenue rates.

Rates are calculated by grade band for:– Base– Supplemental– Concentration– Other revenue (including TIIG and Transportation)

Grade Base Supplemental Concentration Other Funding

K to 3 $6,736 $981 $2,193 $1,878

4 to 6 $6,156 $909 $2,110 $1,878

7 to 8 $6,696 $1,001 $2,481 $1,878

9 to 12 $7,807 $1,200 $3,476 $1,878

Donors may specify how the funds should be spent.

Donors or principals designate dollar amounts and activities to be supported when filling out the Donation Form.– They should not indicate “Principal’s Discretion” or “School

Determined Needs.”

See Bulletin No.5895 dated September 3, 2013 (currently being updated)

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Unrestricted Funds - Donations

The District allocates resources to schools in the form of positions using staffing ratios and other dollars in the General Fund School Program -13027.

Schools will use their General Fund School Program funds to build a budget that complies with the needs of the local school Instructional and Operational Program.

The budget must follow State and Federal laws, court orders, consent decrees, Personnel Commission Rules, collective bargaining agreements, and Human Resources guidelines.

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General Fund School Program Allocation

These are the resources that are included in the General Fund School Program:Administrators Interscholastic Athletic ProgramAssistant Principals, Library Media Teacher Secondary Counseling Services (APSCS) Library Media Teacher DifferentialAssistant Principals, Longevity and Salary Differentials, Elementary or Secondary Certificated and ClassifiedClerical Substitutes NursesClerical Support PsychologistsCounselors Registration Advisor TimeCustodial Supplies Teacher Activity DifferentialsCustodians TeachersDay to Day Substitutes, Teachers Temporary Personnel Account (TPA)Financial Managers Testing Coordinator DifferentialGeneral Supplies Physical Education Teacher IncentiveInstructional Materials Account Grant (PETIP)

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General Fund Program Resources

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During Budget Development schools may not modify a position’s group/level for the purpose of capturing salary savings.

If schools close positions that are allocated to them, these positions cannot be re-purchased from Specially Funded programs.

If a school purchases positions in excess of the District’s staffing levels, the school is responsible to fund sufficient dollars to cover all benefited absences, substitute days, longevity/differentials, and the actual costs of those positions.

General Fund Program - General Guidelines

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Each fiscal year during Budget Development, the District will reset school staffing patterns to match the District’s recommended levels of staffing.

The District will allocate positions with incumbents at the employees’ actual salaries. Schools will budget vacant positions at the District’s average cost.

Some schools may receive augmentations to their school’s budget for various resources. If a school receives an augmentation for a particular resource, the school may not exercise flexibility over the same resource allocated as part of the General Fund. Augmented resources must supplement, not supplant, General Fund resources.

General Fund Program - General Guidelines

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10183 – Targeted Student Population

10400 – TSP Per Pupil School Allocation

10405 – TSP Parent Engagement

10397 – TSP-PPS

There are other resources that schools are receiving that are centrally funded(i.e. Nurse, PSA, Restorative Justice Coordinators, etc…)

LCFF Supplemental, Concentration and Add-on Grants

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Schools receive an allocation based on their unduplicated count of Free and Reduced-Price Meal (FRPM) eligible students, English Learners, and Foster Youth students under Program 10183.

The resources from this program must support the needs of low-income, foster youth, re-designated fluent English proficient and English learners.

Positions, services, and programs funded with Program 10183 must be aligned to the following goals as described in the District’s Local Control and Accountability Plan (LCAP): 100% Graduation, Proficiency for All, 100% Attendance, Parent, Community and Student Engagement , and Ensure School Safety.

Expenditures in Program 10183 must directly support increased or improved services for the three populations that generated the resources.

Parents/guardians, teachers, principals, administrators, other school personnel, bargaining units of the school district, and pupils must be consulted in the development of the District’s LCAP per Education Code 52060 (g).

10183 – Targeted Student Population

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If schools close norm-based core program positions that are allocated to them in Program 13027, these positions cannot be re-purchased from the Targeted Student Population program. .

If a school receives an augmentation for a particular resource, the school may not exercise flexibility over the same resource budgeted as part of the Targeted Student Population program.

If a school purchases positions in the Targeted Student Population program, the school is responsible to fund sufficient dollars to cover all benefited absences, substitute days, longevity/differentials, and the actual costs of these positions.

Schools will budget vacant positions at the District’s average cost. Core services must be budgeted in the General Fund School Program before

purchasing additional resources in the Targeted Student Population program.

Program 10183 – General Guidelines

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Schools may receive an allocation based on the “equity-based” index or “student Index”.

The equity based index is calculated by the sum of English learners, low Income, foster Youth, and homeless students divided by the total number of students.

The allocation of these resources may be in the form of positions and/or instructional materials.

The resources under TSP –Per Pupil School Allocation (Program 10400) must be aligned to the following goals as described in the District’s Local Control and Accountability Plan: 100% Graduation, Proficiency for All, 100% Attendance, Parent, Community and Student Engagement, and Ensure School Safety .

Parents/guardians, teachers, principals, administrators, other school personnel, bargaining units of the school district, and pupils must be consulted in the development of the District’s LCAP per Education Code 52060 (g).

10400 – TSP Per Pupil School Allocation

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Positions budgeted in the TSP-Per Pupil School Allocation program are budgeted at the District average.

The resources in TSP-Per Pupil School Allocation program 10400 are predetermined using the student index file. Schools do not have flexibility to repurpose these funds.

Funds in this program are scheduled to carryover, however, any positive ending balance in Program Code 13027 will be used to offset the negative ending balances in program 10400.

Program 10400 – General Guidelines

Categorical Funds – resources allocated to supplement the core instructional program (i.e. must supplement and not supplant). Allocated based on student characteristics such as Low Income and English Language Learners.

A Grant represents funding awarded to a school. It is used to document, control and report on the results of an agreement made between a sponsor and the school for a specific use.

Some examples are:• Federal and State Grants• Smaller Learning Community Grants• California Partnership Grants

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Restricted Funds – Specially Funded Programs

Special Education Funds – resources are allocated based on student needs as indicated by Individual Education Plans (IEPs).

Cafeteria Funds – resources are allocated to operate the District’s food service program. These funds are centrally administered.

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Restricted Funds – Specially Funded Programs

SPECIAL POLICIES/PROCEDURES

Special Program Policies/Procedures Zero Basis Positions Carryover Pre-Norm Growth Norm Day Settle Up Pending PayScale Level Advances

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During Budget Development, schools may use projected carryover to fund positions.

Schools may utilize this process until the carryover is posted in the school’s General Fund School Program.

Schools may also purchase zero-basis positions with grant and/or donation checks.

Once carryover is available these positions can be funded.

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Zero Basis Positions

The carryover policies may vary each year based on the District’s financial condition.

Schools are encouraged to expend their entire allocations on the students that generate the dollars, without over-drafting the accounts.

Any positive ending balance in program code 13027 will be used to offset the negative ending balances in other programs such as 10397, 10400, 11103, 11141, etc.

Positive ending balance in program 10397 will carryover in Pending Distribution.

Positive ending balances in program 10400 will carryover.

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Carryover

• Schools must complete and submit – a Carryover TSP 10400 School LCAP plan to describe how they will use these funds and – a manual Budget Adjustment Request (BAR) to their Local District’s Title I Coordinator.

• The LCAP plan template and list of allowable items were sent to principals on September 17, 2015.

• The deadline for the submission of the documentation is on or before November 2, 2015.

• The funds will remain pending distribution until a plan and a BAR are submitted.

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Carryover - Program 10400

Prior to Week 4, if a school has confirmed growth, the school can use their General Fund School Program dollars in 13027 to pay for a contracted pool teacher.

If this growth is later substantiated, based on Week 4 or Norm Day enrollment counts, the school will be reimbursed with a growth positions.

When a school has confirmed growth but does not have sufficient funds to cover a contracted pool teacher, a growth request may be submitted.

The school should submit Classification Report (s) for official capture dates and Statistical/SMASR to the Fiscal Services Manager for preliminary review. The request will be forwarded to the Local District Superintendent for approval and subsequently to Budget Services for the creation of the limited growth position.

If Norm Day enrollment data substantiates the growth, the position funding with be extended to the entire fiscal year. If not, the position will be closed as of Norm Day.

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Pre-Norm Growth

By Norm Day, average daily attendance data for the 2015-16 school year will be available. The District will then update your school’s projected ADA for the 2015-16 school year using your 2015-16 norm day enrollment counts and 2014-15 ADA percentage. Using this new projected ADA, and the per pupil rate from Budget Development, the District will calculate a new Norm Day allocation for your school. This allocation will be compared to your school’s allocation from Budget Development.

In addition, your school’s projected expenditures will be updated to reflect staffing ratios and resources based on Norm Day enrollment counts. The revised expenditures will be compared to your projected expenditures from Budget Development. The District will implement increases or decreases to your school’s General Fund School Program Allocation, and your allocation in Program 10397 – TSP-PP if applicable.

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Norm Day Settle Up

The District will determine the actual costs of assignments after the Human Resources Division and Personnel Commission have processed Norm Day assignments.

Budget Services will then identify the net difference between budgeted and actual costs at the whole school site.

If the net actual cost of positions is higher than budgeted, then the District will adjust positions to their respective incumbents’ pay scale levels accordingly.

If the net actual cost of positions is less than budgeted, then the District will provide the Home Fund Center with the difference in dollars.

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Pending Pay Scale Level Advances

BUDGET STRUCTURE

Budget Structure Cost Center SACS Fund Functional Area Commitment Items

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For time reporting and budgeting, we use Standardized Account Code Structure (SACS) to represent school locations and specific programs in SAP.

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Budget Structure

Cost Center is composed of 7 digits

1123401

Format: 1 - 4 digit Location Code - 01

Cost Center begins with a 1 followed by the 4-digit Location Code and ends with (2) additional digits for sub-location designation, such as magnet centers and small learning communities

Magnet Cost Center - 1123402

(subsequent numbers if more than one Magnet location)37

Cost Center

SACS Fund consists of 3 digit SACS Fund & 4 digit SACS Resource

010-0000 Fund Resource

Fund - The fund field is used when any accounting transaction is recorded.

• 010 – General Fund

Resource - The resource field allows LEAs to account separately for activities funded with revenues that have restrictions on how the funds are spent (e.g., NCLB, Title I).

• 0000 – Unrestricted;

• 3000 – 5999 – Federal Resources Restricted;

• 6000 – 7999 – State Resources Restricted;

• 8000 – 9999 – Local Resources Restricted

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SACS Fund

Goal - first 4 digits in the functional area. It groups costs by population, setting, and/or educational mode

0000 - Undistributed1110-Regular Education, K-125730-Spec Ed, Pre-School Stud

Function - the middle 4 digits in the functional area. It describes activities or services performed to accomplish one or more objectives in the Goal.

1000-Instruction2700-Adminstration

Program Code - last 5 digits of the functional area

General Programs start with 1, e.g.,

13027=General Fund

Categorical Funds and Grants start with 7, e.g.,

7S046=Title I Program

Functional Area is composed of 3 groups of numbers

1110-1000-13027

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Functional Area

The commitment item, general ledger and the cost element are equivalent or interchangeable expenditure codes that represent all the things, whether goods or service, that may be purchased.

Examples are salaries, employee benefits, supplies, contracts and equipment.

Commitment Item/General Ledger AccountIs composed of 6 digits

430010

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Commitment Item/General Ledger Acct

100000 - Certificated Salaries• 110001-Regular Teacher Salary• 110004-Supplemental Teacher Salary• 190001-Other Certificated Salary

200000 - Classified and Unclassified Salaries• 210001-Instructional Assistants• 240001-Office Personnel Salary

300000 – Benefits• 340101-Health/Welfare-Certificated• 340201-Health/Welfare-Classified

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400000 – Other Expenditures/Goods • 430001-General Supplies • 430010 – Instructional Material (IMA)• 430098 – Instructional Material Account Adj/Potential Funding Variance• 430009 - Pending Distribution• 430077 – Negative Allocation

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500000 – Other Expenditures/Services • 520002-Travel/Conference Attendance• 580012-Curricular Trips

600000 – Capital• 620001-Buidings/Improvements to Buildings

700000 – Administrative Charges• 731001-Indirect Support

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BUDGET PROCESS

Budget Process Overview of School Budgeting School Budgeting - Calendar Budget Planning & Development

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• During the planning and development process, school leaders and stakeholders develop budgets that reflect the needs of their students.

Budget Planning &

Development

• Budget management includes payroll (time-reporting), purchasing, monitoring, and realigning balances.

Budget Management

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Overview of School Budgeting

Management

Planning Development

JuneMarchJuly January

Planning

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School Budgeting Calendar

Analyze student

achievement and school

performance data

Adjust goals based on data

findings

Develop instructional

and operational strategies to achieve goals

Identify resources (such as personnel,

time, materials, and

dollars) needed to support strategies

Prioritize investments

Align all budgeted funding

sources, both restricted and

unrestricted, to those priorities

Communicate with and involve stakeholders in instructional and budgeting decisions

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Budget Planning and Development

E-Cast Enrollment Projections Allocations are based on E-Cast projections and Board

Approved Staffing RatiosAllocations are adjusted with Norm Day Actual enrollment.

Meet with school site stakeholders Prioritize needs Implement budgets in SFE Obtain all school site approvals and signatures Meet with your Fiscal Specialist on your Budget Development

appointment date

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Budget Development Process

Budget Monitoring Budget Availability School Spending Report Control Sheets

Budget Adjustment Request

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BUDGET MANAGEMENT

Schools are expected to spend within their allocations. If schools end the year with negative balances, it will impact next Fiscal Year’s budget.

For example: If you overspend Program 13027, the negative amount will carryover into the next fiscal year.

Control Sheets should be maintained to avoid overspending. Other sources of budget reference:

• Budget Availability Report• School Spending Report

UNDERSPENDINGOVERSPENDING

Monitoring is important…

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Budget Monitoring

A resource that can be used to monitor your school’s budget. It shows balances by program and commitment item. Shows the school’s Funding Allocations, Commitments

(Encumbrances) and Actuals (Expenditures). Data is downloaded from SAP (overnight cycle). Requires a single sign-on user id.

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The Budget Availability Report

1123401

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Sample Budget Availability Report

Provides schools with an easy to use report that helps them monitor and manage their spending.

Available at each school’s Portal Page. You can search for school Portal Pages here: http://

notebook.lausd.net/schoolsearch/selector.jsp

The report is populated with data from SAP and updated nightly.

No sign-on is required.

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The School Spending Report

http://notebook.lausd.net/schoolsearch/selector.jsp



Cost Center and school name will

appear here.

1234 SCHOOL A

Program and commitment items

will be automatically loaded. No input is

necessary.

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Sample School Spending Report

A control sheet is a tool that a school can use to keep track of

expenditures and available balances. It can be maintained manually or in an Excel (hyperlinked)

spreadsheet.

Balances

Budget Adjustments

Expenditures

Allocations

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What is a Control Sheet?

To keep track of how much is spent and how much is available to spend.

As an aid, to prevent overspending, which may lead to a reduction in next year’s budget.

To help with forecasting expenditures, which allows schools to identify unspent balances that may be used for instructional priorities.

If used correctly, control sheets are the most timely and accurate budget reference available to schools.

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Why Are Control Sheets Used?

Sample Non-Salary Detail Sheet

Sample Salary Detail Sheet

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Sample Control Sheets

Non-Salary Control Records: Expenditures and Other Transactions

Instructional Material (IMA) General Supplies Imprest Charges & P-Card Expenditures Budget Transfers & Additional Allocations Online Shopping Cart Purchasing Contracts (Toshiba copier, instructional services, etc.) Conference Attendance Curricular Trips Alterations and Improvements (A&I)

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Non-Salary Control Records

Salary Control Records: All Non-Position Salary Items Day-to-Day Substitutes District-Sponsored Training Rate Teacher X and Z Time Custodial & Clerical Overtime and Relief Teacher Assistant and Instructional Aide Relief Professional Development Teacher – Regular School Supervision Aides Community Reps

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Salary Control Records

Before Submitting a Budget Adjustment Request (BAR)

Stakeholder Engagement Categorical program Budget Adjustments require School Site Council

approval. The Single Plan for Student Achievement (SPSA) may need to be

updated. General Fund School Program (13027) Budget Adjustments should

also be discussed with stakeholders.

Check available balances Are there funds available to be transferred?

Use the Budget Availability Report Control Sheets will have the most accurate balances, as long as

they’ve been regularly updated.

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Budget Adjustment Requests

1. School Site Council approves changes to budget, if applicable

2. School prints School Budget Signature Form (before WIP)

3. Verify budget availability

4. School enters approved adjustments in SFE

5. Administrators submits for approval on-line

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Budget Adjustment Request Process

6. School prints School Budget Signature Form (WIP version)

7. School submits required documents to Fiscal Specialist. (Original Signature, Justification form , SPSA or update)

8. Fiscal Specialist checks budget availability

9. Fiscal Specialist forwards documents for Local District approvals

10. Fiscal Specialist submits for final approval

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Budget Adjustment Request Process

SAMPLE

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Budget Adjustment Request Sample

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Programs Available in Schools Front End

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A manual Budget Adjustment Request (BAR) is needed for: Program codes that are not in SFE Restricted items that require additional approval

SAMPLE

Manual Budget Adjustment Request

Minimum Required Data for a manual Budget Adjustment Request:

Non-Positions: Fund Center Name & Cost Center Program Code Name & Program Code Specific Item Description Start & End Date Amount ($) Reason

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Minimum Required Data for a manual Budget Adjustment Request:Positions : Fund Center Name & Cost Center Program Code Name & Program Code Specific Item Description Start & End Date Amount ($) Position Status Position Control Number (existing positions) Basis Hours Per Day Days Per Week Funding Percentage Reason

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SCHOOLS FRONT END (SFE) REPORTS

Commonly Used Budget Reports Estimated Rates by Budget Item School Discretionary Program Report School Resource Allocation Staffing and Resources

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Estimated Rates By Budget Item displays estimated costs for Budget Items by Program Codes.

The report has the following fields: Budget Item Description Budget Item Program Program Description Budget Item Category Commitment Item Position Attributes Cost

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SAMPLE

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School Discretionary Programs Report displays a summary by program grouping (Categorical or Regular programs) and includes budget item description, total cost , and full time equivalent of positions for School Front End program codes.

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SAMPLE

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School Discretionary Programs Report


School Resource Allocation displays detail of the school’s allocation amount by program.

The report has the following fields: Program Program Description Rate Participants Allocation

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SAMPLE

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Staffing and Resource summarizes the resources a school receive.

The report has the following fields: Header Description FTE Total Cost

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SAMPLE

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Budget Services and Financial Planning website http://achieve.lausd.net/Page/431

School Fiscal Services website http://lausd.schoolwires.net/Page/794

Local District Northwest Business Services webpage http://achieve.lausd.net/Page/8506

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Resources

http://achieve.lausd.net/Page/431

http://achieve.lausd.net/Page/431

http://lausd.schoolwires.net/Page/794



THANK YOU!

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school finance 101 2015-2016 presented by school fiscal services at ld northwest:

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