2017 New Supt Orientation handouts - Nebraska · If you watched the School Finance Webinar on July...
Transcript of 2017 New Supt Orientation handouts - Nebraska · If you watched the School Finance Webinar on July...
2017 New Superintendent Orientation 7/18/2017 North Platte 7/20/17 Lincoln
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New Superintendent Orientation
Holiday Inn Express, North Platte 7/18/17Lincoln Foundation Bldg, Lincoln 7/20/17
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2017/18 New Superintendent Orientation Evaluation
What can we do to improve for next year?
If you watched the School Finance Webinar on July 28th, did you find it helpful?
2017 NEW SUPERINTENDENT
ORIENTATION
Jen Utemark
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WHAT IS TEEOSA?
TaxEquity andEducationalOpportunitiesSupportAct
Statute that defines StateAid
Creates the basic concept for the present state aid formula
Equalization Aid – largest component of State Aid
Complex matrix of formulas
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TEEOSA AID PROCESS
CERTIFICATION•Calculated in the spring for following year•Statute v. Actual•Reason for push back
•Suppose to be open ended formula•Difficult during budget years•Difficult with RIF deadlines
RECALCULATION•Recalculated in the fall for the current year•Update the formula•Creates prior year correction
CALCULATED TWICE PER YEAR
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EQUALIZATION AID
BASIC CONCEPT
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….intended to cover the needs of school districts which cannot be met by the resources
NEEDS RESOURCES
2017 New Superintendent Orientation 7/18/2017 North Platte 7/20/17 Lincoln
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NEED SOURCES
FORMULA STUDENTS•Grades K - 12•Qualified 4 year olds (60% Rate)•Contracted to another district
GENERAL FUND OPERATING EXPENDITURES
•Revenues & expenses from Annual Financial Report
•Adjusted GFOE•Multiplied by cost growth factor•Minus all allowances
COST SHARING FORMULA
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E ST I M ATED AM OU N Tre q u i re d to ge n e ra l l y o p e ra te a s c h o o l d i s t r i c t w i t h a s p e c i f ied n u m b er o f s t u d e nt s
C ALC U LAT ED BY C OM PARI SON GROU PU s in g t h e 10 la rge r a n d 10 s m a l le r d i s t r i c t s c lo s e s t in s i z e a n d m e a s u re d by fo rm u la s t u d e n ts
ADJU ST E D GFOEis ave ra ge d wh e n c a lc u lat ing b a s ic fu n d in g
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BASIC FUNDING
CATEGORIES OF NEEDS
COST SHARING FORMULA
ALLOWANCE•Based on estimated or
actual expense•District specific•Addresses a specified
situation by reducing basic funding
ADJUSTMENT•Increases the needs•Adds money to formula•Addresses a specified
situation without reducing basic funding
CORRECTION•Added or subtracted•Corrects for an
allowance or an adjustment
•Occurs 2 years later
STABILIZATION•An amount added or
subtracted•Keeps the needs from
growing or declining by more than a specific rate
COSTS TO EDUCATE THE STUDENTS
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NEEDS & ALLOWANCES
Transportation Transportation
Distance Education & TelecommunicationsDistance Education & Telecommunications
Elementary SiteElementary Site
Summer SchoolSummer School
Focus School & ProgramsFocus School & Programs
Special ReceiptsSpecial Receipts
Poverty/Limited English Proficiency (LEP)Poverty/Limited English Proficiency (LEP)
2017/18 ALLOWANCES
Recognizes Funding
For….
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System Averaging
Two-Year New School
Student Growth
Community Achievement Plan
NEEDS & ADJUSTMENTS
2017/18 ADJUSTMENTS
Adds Money to the Formula For….
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NEEDS & CORRECTIONS
Poverty & Limited English Proficiency Corrections• Subtract any excess allowance received• Penalized if plan requirement are not met• LEP – Disqualified for current Year; minimum spending
requirement are not metStudent Growth Correction
• An amount added or subtracted• Aligns with actual student growth
OCCURS….Two years after the district receives the allowance. Compares the estimated to what actually occurred.
WHY……….Aligns the funding with when the expenditure or student growth is expected.
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2017 New Superintendent Orientation 7/18/2017 North Platte 7/20/17 Lincoln
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COMPONENTS OF RESOURCES
COST SHARING FORMULA
YIELD FROM LOCAL EFFORT RATE
•Property tax capacity•Local Effort rate –hypothetical tax rate
•Applies a tax rate to valuations
NET OPTION FUNDING
•Provides funding for the additional students being educated
•Enrollment Option Program
ALLOCATED INCOME TAX
•Distributes a percentage of individual income taxes back to the school district
OTHER ACTUAL RECEIPTS
•Power district sales tax•Fines/license fees•Tuition•Interest•Special Education•State Wards•Motor vehicles•Non-Categorical Federal Funds
COMMUNITY ACHIEVEMENT
PLAN AID•Aid for cooperative programs in the Learning Community
•Sharing of administrative and instructional staff for approval and accreditation requirements
REVENUE SOURCES
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COMMON QUESTIONS
Why does our school district receive very little state aid?
Possibly a non-equalized district • Do not receive equalization aid• Resources are greater than your needs• Equalization Aid is largest component of TEEOSA Aid • Property rich = less support from the state
More districts are becoming non-equalized• Increased valuations• Decreased enrollment
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COMMON QUESTIONS
I’m a non-equalized district….does TEEOSA aid matter?
NET OPTION
FUNDING
ALLOCATED INCOME
TAX
COMMUNITY ACHIEVEMENT
PLAN AID
EQUALIZATION AID
2017/18 TEEOSA Aid Model74 Equalized Districts
171 Non-Equalized Districts15
COMMON QUESTIONS
Does my general fund levy rate
have any effect on TEEOSA aid?
Equalized DistrictsIncreased resources
Non-Equalized DistrictsReduced aid to the extent of allocated income tax
2016 Legislative SessionEliminated the Minimum Levy Adjustment
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COMMON QUESTIONS
Can districts maximize
their financial situation?
• Understand the components of formula need
• Code revenues and expenses correctly
• Look at the whole picture when determining where to code expenses
• Submit verified data by the due dates
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http://www.education.ne.gov/FOS/SchoolFinance/StateAid/Index.html
Decodesthe components of Equalization Aid
Resourcefor more detailed information
Availableon NDE’s website
TEEOSA Document Resource
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2017 New Superintendent Orientation 7/18/2017 North Platte 7/20/17 Lincoln
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The Portal
Tom Goeschel Jr
The Portal
• The Portal is where School Districts report most of their information to NDE
• You can get to the portal at https://portal.education.ne.gov
• Once in the portal you can access Data Collections (CDC), and Nebraska Student and Staff Record System (NSSRS)
Grants Management System (GMS)
Tom Goeschel Jr
What is GMSEnables districts to create, submit, and
amend certain grant applications.Allows districts to create and submit
grant reimbursement requests.Assists districts in tracking the status of
applications, allocation, and reimbursements amounts.Create and submit Limited English
Proficiency (LEP) and Poverty Plans.
How do I access GMSGo to the home page of the NDE GMS
website located at https://nde.mtwgms.org/NDEGMSWebv02/logon.aspx
How do I access GMS Enter your Username/Email and Password
Follow the instructions above if you have not been in the system before or contact Kathy Von Kaenel for help
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GMS related questions Grant Applications (NCLB) – Diane Stuehmer
Phone - (402) 471-1740 E-Mail - [email protected]
Grant Applications (IDEA) – Greg Prochazka Phone - (402) 471-4314 E-Mail - [email protected]
Grant Reimbursement Request – Contact Links in GMS https://nde.mtwgms.org/NDEGMSWebv02/logon.aspx
Activation codes and technical assistance – Cathy Von Kaenal Phone - (402) 471-2482 E-Mail - [email protected]
Other GMS Resources• GMS Front Door User Guide, Webpage, and Management
Guidance- https://www.education.ne.gov/gms2/index.html
• GMS Webpage– https://www.education.ne.gov/gms2/index.html
• GMS Users Guide– https://www.education.ne.gov/GMS/GMS%20User%20Guide.p
df
• Grants Management Guidance– https://www.education.ne.gov/federalprograms/Docu
ments/Main%20Page/NDE_Grant_Mgt_Guidance_2015-08-31_FINAL.pdf
Poverty and LEP Plan Reviews
Tom Goeschel Jr
History
• NDE provided funding from Legislation• Reviews started in 20132013 pilot group of 9 districts2014 &2015 22 districts2016 & 2017 25 districts were reviewed
• Total DistrictsCurrently there are 193 Poverty and 96 LEPPlan is to review every district
Review process
• Review the LEP/Poverty narrative• Discuss best practice ideas• Discuss optional funding ideas• Review the financial detail for proper
coding and reasonableness• Answer any questions that the district
may have
Submission of Plans
• Timelines Opens August 1, 2017 Closes October 15, 2017
• Plans Poverty Limited English Proficiency (LEP)
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Poverty Plan
• Attendance and Mobility Proactive and Reactive Policies Transportation Options Services to support transition Services for Students for Absence or
Mobility Issues
Poverty Plan continued
• Parental Involvement Parent/Family Engagement Opportunities Surveys/Community Involvement
• Instructional Services Practices to Maintain Class Size Support Staff Uninterrupted Teaching Time
Poverty Plan continued
• Specialized Serviceso Early Childhoodo Access to Social Workerso Extended School day/or Yearo Summer Schoolo Other Specialized Services
Poverty Plan continued
• Professional Development Mentoring New or Newly Reassigned
Teachers Staff Development
• Evaluation of Plan Determine Effectiveness of the Plan
• Other Anything that does not fit into a Category
Already Provided
Poverty Plan continued
• Examples of allowable expenditures– Salary and benefits – Initiatives to improve attendance– Parent Education and Parent Surveys– Preschool costs– Summer School and extended day
services– Staff Development
LEP Plan
• Identification of Students Process for Identifying Students Language Assessment Used Criteria in Determining who Qualifies
• Instructional Approaches Social and Academic Purposes Models and Approaches Recognized as
Best Practices by Experts in the Field
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LEP Plan continued• Assessment of Students’ Progress Criteria to Determine Mastery Measures used to Assess
• Evaluation to Determine Effectiveness Approach used to Evaluate Effectiveness Data used to Evaluate
• Other Anything that does not fit into a category
already Provided
LEP Plan continued
• Examples of allowable expenditures– Identifying Students– Salary and Benefits– Library/Media Resources– Staff Development– Evaluating the Plan
Poverty/LEP Support
• Use Census Data– Take a head count on a certain day
• Develop a Rationale– The reason we provide this service
• Retain Support for State Review• Develop your plan in Word format
Poverty/LEP Plan Ideas• Other ways to use Poverty/LEP Funding Use funding to help with integrating
Poverty/LEP into your entire school plan Program Development, Technology
Building Capacity Whole Staff Development, Building Resources
Expanding School Time Summer, Before or After, Jump Start
Level the Playing Field ACT/SAT Prep, Duel Credit Courses, Activities
Resources State Statutes for Poverty & LEP Plans Rule 15 and Implementation Guide
http://www.education.ne.gov/NATLORIGIN/
FAQ for the Poverty and LEP Plans http://www.education.ne.gov/povertyandlep/
Poverty & LEP Allowance Calculation http://www.education.ne.gov/FOS/SchoolFinance/PovertyAllowance.html http://www.education.ne.gov/FOS/SchoolFinance/LEPAllowance.html
Poverty and LEP Webpage (Resource Guide) http://www.education.ne.gov/povertyandlep/
GMS Website https://nde.mtwgms.org/NDEGMSWebv02/logon.aspx
• Questions
Contact InformationTom Goeschel Jr. – Administrative Specialist IIPhone – 402-471-3570E-Mail – [email protected]
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ExclusionsBill Biven, Jr.
Expenditure Exclusions
• Give schools ability to spend more
• Most will need approval by the State Board of Education
Expenditure Exclusions• Special Education
• Special Grant Funds – Grants identified on Grant Fund List have
already received State Board Approval for 2017/18 school year
These are the only expenditure exclusions that State Board Approval
is not required
Levy Exclusions
• Levy Exclusions– Allows a levy more the $1.05 statutory
maximum levy.
– State Board Approval is not needed
Levy Exclusions
• Voluntary Termination Agreements with certificated employees
• Judgments not covered by Liability Insurance
• Bonded Indebtedness
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Levy Exclusion Expenditure Exclusions
Voluntary Termination Agreements Voluntary Termination Agreements
Certain Lease Purchase Contracts
Judgements Not Covered by Liability Insurance Judgements Not Covered by Liability Insurance
Special Building Projects
Bonded Indebtedness
Repairs to Infrastructure Due to Natural Disaster
Distance Education Courses
Retirement Contribution Increase
Retirement Incentive Plan
Staff Development Assistance
Data Transmission Networks Exclusions
Early Childhood Education Grants
New Elementary Attendance Site(s)
Special Grant Funds
Special Education Expenditures
Native American Impact Aid
Levy Exclusions Grant Allocations for Special Grant Fund List
• Contact NDE Program Person to get anticipated amounts for individual grants
• Allocations available on Program Websites– IDEA allocations in NDE Special Education page
under “Finance” Available now:https://www.education.ne.gov/sped/finance/Prelim_2017-18_IDEA_allocations.pdf– Title allocations in NDE Federal Programs
Should be available next week:https://www.education.ne.gov/federalprograms/Index.html
• Place these figures in the Special Grant Fund List and the General Fund Receipt Worksheet
Supplemental Grants on the Special Grant Fund List
• Insurance Settlements
• Interfund Loans
• Reimbursements for Wards of the Court
• Repayments to County Governments for Previous Overpayments
Supplemental Grants on the Special Grant Fund List (cont.)
• Short-Term Borrowings
• Special Grants not included on Special Grant Fund List– City or County Government
– Corporations, Foundations or Other Private Interests
2016/17 Early Childhood Education Grants
• Districts can request an expenditure exclusion for an amount equal to their 2016/17 Childhood Education Grant (and increased by the Basic Allowable Growth Rate) if 2017/18 is the first year early childhood membership is included in the district's formula students.
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Expenditure ExclusionsRepairs to infrastructures caused
by a natural disaster
Declared natural disaster by FEMA, NEMA or Governor
–Flooding–Tornadoes
Judgments
• Not paid by the district’s liability insurance
• Judgments from the Commission of Industrial Relations (CIR) are not eligible
Distance Education
• Amounts received from other educational entities
• Providing courses through ESU Coordinating Council
Retirement Contribution Increase Exclusion
• Difference between 9.88% of estimated salaries and 7.35% of estimated salaries.
• Round to the nearest dollar.
Voluntary Termination Agreements
Changes Provisions RelatedTo District Budgeting
Voluntary Termination Exclusion– Eliminates exclusions resulting from voluntary termination
agreements resulting from collective bargaining agreements beginning 9/1/17
– Incentives for certificated staff can include insurance coverage for staff member or any member of their family
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Voluntary Termination Agreements
Changes Provisions RelatedTo District Budgeting
Voluntary Termination Agreements for Certificated Teacher after 9/1/17:
– Incentives do not exceed $35,000 per person
– Incentives are paid within 5 years or prior to becoming eligible for Medicare, whichever first
– Must show 5-year savings in salary & benefits
– Not included in a collective bargaining agreement
Voluntary Termination Agreements
Changes Provisions RelatedTo District Budgeting
Voluntary Termination Exclusion-CBAs– Certificated Employees– Included Collective Bargaining Agreements in place before 9/1/17
– Retirements that occurred prior to 9/1/17• Exclusion is 100% of incentives paid out
– Retirements occurring 9/1/17 and after. Eligible exclusion is:• 75% of incentives paid out in 2017/18• 50% of incentives paid out in 2018/19• 25% of incentives paid out in 2019/20• Phased out completely in 2020/21
Retirement Incentive Plan Staff Development Assistance
• Only available to school districts that have reorganized or unified for the upcoming school year.
https://www.education.ne.gov/FOS/SchoolFinance/Budget/Index.html State Board Approval ProcessSubmit request as an e-mail to:
Bill BivenSchool Finance & Organizational Services 301 Centennial Mall South PO Box 94987Lincoln, NE 68509
E-mail: [email protected]
Fax: 402-742-1146
State Board Approval Process
• Districts will no longer be notified by email of the State Board’s approval, modification, or denial of the amount(s) in exclusion request
• https://www.education.ne.gov/FOS/SchoolFinance/Budget/Index.html
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Required Budget Hearings• Hearing to Adopt Budget
• Special Hearing to Set Final Tax Request
Notice of Budget Hearing
• Publish Hearing Notice Five Calendar Days Prior to Hearing
Special Hearing to Set Final Tax Request
• Five day public notice
• If errors are found in notice, not required to re-publish
• Must submit Tax Request to County Clerk by October 13
Setting Hearing Dates• Avoid setting hearing last week before
the 20th in case hearing notice doesn’t get published
• Labor Day printing schedule – Ask local newspaper when to submit hearing notice
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Budget Hearing Process
• Open Hearing
• Provide Hearing Information• Provide Budgets to patrons
• Close Hearing
• Take Board Vote during Meeting
Notice of Summary of Changes
• Budget adopted is changed from what was originally published
• Publish within 20 days after the budget was adopted
• Hearing must be held if over 20 days since budget was adopted
Clerical, Math, or Accounting Errors
• No hearing required if the total budget is not affected by more than 1% or the property tax does not increase
• Board action can correct error within 30 days after budget adoption or after notification from Auditor’s Office
Filing the BudgetBudget Document
• Cover Page • Pages 2-5• Schedules A, B, D
LC-2 • Special Grant Fund List
Sample Ballot/Results• Levy Override• Vote to increase Spending
Board Minutes• Vote of Approval
Submit to:• Auditor of Public
Accounts• Mail or Upload PDF
• County Clerk • Mail or Upload PDF
• NDE• Upload in LC-2
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2017/18 Budget TimelineDate Budget Activity
August 20 Assessed valuation certified by county
September 20
Filing deadline for Budget and LC-2 to NDE, Auditor of Public Accounts, County ClerkMaterials to submit: School District Budget Form (Cover Page through Page 5) Proof of Publication for Notice of Budget Hearing Schedules A, B, D Certification of Taxable Value Sample Ballot and Certification of Election Results for successful election to override the
levy limitation(if applicable)
LC-2 The LC-2 (which includes the Special Grants Fund List) will be submitted online to
NDE through the NDE Portal A paper copy of the LC-2 & Special Grants Fund List will be filed with the Auditor of
Public Accounts & the County Clerk Sample Ballot and Certification of Election Results for successful election to override the
expenditure limitation (if applicable) Board Minutes
October 13 Resolutions setting all tax requests filed
December 31 Filing deadline for the Report of Joint Public Agency & Interlocal Agreements File with the Auditor of Public Accounts
Annual Financial Report
2017 New Superintendent Orientation 7/18/2017 North Platte 7/20/17 Lincoln
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Annual Financial Report (AFR)
• Reports Revenue and Disbursements for all funds
• Major Source of Data Used to Calculate State Aid
Accuracy of information is very important!!!
Annual Financial Report (AFR)
• Due November 1, 2017
• AFR Spreadsheet available on Finance & Organizational Services (FOS) website:
https://www.education.ne.gov/FOS/SchoolFinance/AFR/Index.html
• AFR Spreadsheet is uploaded through the AFR Online System in NDE Portal
Annual Financial Report (AFR)
• Narratives describing disbursements:–Poverty Plans–Limited English Proficiency (LEP)
Plans
School District Audits• School district auditors conduct review
of school district accounting records after the end of the school year (August 31)
• Must include ADA/ADM compliance check
• NDE verifies Annual Financial Report information using district audits
• Due November 6 (Nov 5 – Sunday)
School District’s Response to the Auditor’s Letter to Management
• Addresses compliance issues or other items that the auditors detail in audit or the Letter to Management
• Due to NDE by January 31, 2018
• Ask your auditor about including your district’s response in the audit
Users’ Manual• Contains coding
structure• Updated each
summer• Available on the
FOS Website• Transactions
coded correctly equal happy auditors! 84
2017 New Superintendent Orientation 7/18/2017 North Platte 7/20/17 Lincoln
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School District Funds
Bryce Wilson
CLASSIFICATION OF FUNDSThis information may be found on the
Nebraska Department of Education’s website:
• Rule 2: https://www.education.ne.gov/LEGAL/webrulespdf/CLEAN2_2017.pdf
• Users’ Manual: https://www.education.ne.gov/FOS/SchoolFinance/AFR/Downloads/1516/2016UsersManual.pdf
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GENERAL FUND • The General Fund is “The Fund” you all
use.
• General Fund receipts are classified according to source while its expenditures are classified according to specific functions.
• General Fund expenditures are limited by statute. The tax levy for this fund is also restricted.
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DEPRECIATION FUND • A Depreciation Fund is established to
facilitate the eventual purchase of costly capital outlay
• Spreads replacement costs over a period of years
• Funds are shown as an expense from the General Fund and the Depreciation Fund will show the revenue as a transfer from the General Fund.
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DEPRECIATION FUND
• The school district may divide this fund into more than one account:
– Instructional Equipment
– Transportation Equipment
– Building Equipment
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DEPRECIATION FUND
This fund is considered to be a component of the General Fund.
The Depreciation Fund is restricted by statute as part of the allowable reserve limitation.
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2017 New Superintendent Orientation 7/18/2017 North Platte 7/20/17 Lincoln
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• Is established to reserve General Fund money for the benefit of school district employees.
• Funds are shown as an expense from the General Fund and the Employee Benefit Fund will show the revenue as a transfer from the General Fund.
EMPLOYEE BENEFIT FUND
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• A school district may divide this fund into more than one account to allocate a portion of this fund for different valid purposes:
– Unemployment compensation
– Early retirement
– Health insurance deductibles
EMPLOYEE BENEFIT FUND
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• The cash reserve of this fund is restricted by statute as part of the allowable reserve limitation
• The Employee Benefit Fund is considered to be a component of the General Fund
EMPLOYEE BENEFIT FUND
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• Authorized by statute to fund uninsured losses and legal fees.
• Expenditures from this fund shall not exceed five percent of the total budgeted General Fund expenditures of the school district.
• Funds are shown as an expense from the General Fund and the Contingency Fund will show the revenue as a transfer from the General Fund.
CONTINGENCY FUND
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• The Activities Fund is required to account extra-curricular activities
• If included in the General Fund the school district’s operational costs would be distorted
• The Activities Fund is not to be used to record general operation revenues or expenditures, nor shall this fund be used as a clearinghouse for the General Fund.
ACTIVITIES FUND
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• The school district may divide this fund into more than one account to allocate a portion of this fund for different purposes
• If deficits in such activities are incurred, they shall be covered by funds transferred from the General Fund
ACTIVITIES FUND
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2017 New Superintendent Orientation 7/18/2017 North Platte 7/20/17 Lincoln
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• The School Nutrition Fund shall reflect a record of all revenues and expenditures for the operation of all Nutrition Programs
• If a deficit is incurred in the operation, the deficiency shall be covered by funds transferred from the General Fund.
SCHOOL NUTRITION FUND
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• The Bond Fund shall be used to record tax receipts, investment interest, and the payment of bond principal, interest, and other related costs (i.e. trustee fees).
• If the fund balance is not sufficient to meet interest or bond retirement payments from the Bond Fund, the General Fund shall be used for these payments.
BOND FUND
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• Revenue from a levy to retire bonds in any school district is retained in a separate fund by the county treasurer, the financial institution serving as a fiscal agent, or the school district.
• Proceeds from a bond issue shall be deposited into the Special Building Fund to be expended on the actual building project.
• The tax levy for this fund is restricted to expenditures for principal and interest on bonds.
BOND FUND
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• A Special Building Fund is established to:– Acquire or improve sites – Erect, alter or improve buildings– Cost to furnish new buildings
• Provides a way to identify cost associated with construction activities
SPECIAL BUILDING FUND
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• The primary sources of revenue for the Special Building Fund are:
– sale of bonds– the sale of property– tax receipts
• General Fund expenditures for the purpose of this fund are not allowable.
• The tax levy for this fund is restricted.
SPECIAL BUILDING FUND
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• A Qualified Capital Purpose Undertaking Fund may be established for:– the removal of environmental hazards, – the reduction or elimination of
accessibility barriers in school district buildings,
– the repayment of a qualified zone academy bond issued for a qualified capital purpose,
QUALIFIED CAPITAL PURPOSE UNDERTAKING FUND
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• A Qualified Capital Purpose Undertaking Fund may be established for (con’t):
– modifications for life safety code violations, and
– mold abatement and prevention projects
QUALIFIED CAPITAL PURPOSE UNDERTAKING FUND
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• Bonds for this purpose would include, but not be limited to:
– Qualified School Construction Bonds
– Build America Bonds
– Any other bonds authorized by ARRA
QUALIFIED CAPITAL PURPOSE UNDERTAKING FUND
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• The School Board may issue bonds for any Qualified Capital Purpose Undertaking Fund project.
• General Fund expenditures for the purpose of this fund are not allowable.
• The tax levy and duration of this fund is restricted.
QUALIFIED CAPITAL PURPOSE UNDERTAKING FUND
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• The Cooperative Fund may be used by the school district acting as the fiscal agent for any cooperative activity between one or more public agencies.
• All school districts, including the school district acting as the fiscal agent, shall show the payment for services to the cooperative in their General Fund.
COOPERATIVE FUND
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• The Student Fee Fund is a separate fund not supported by tax revenue.
• Includes money collected from students pursuant to the Public Elementary and Secondary Student Fee Authorization Act (§79-2,125 through §79-2,135).
STUDENT FEE FUND
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• Included are fees for:– Extracurricular Activities– Postsecondary Education – Summer or Night School.
• Expenditures from this fund must be for the purposes for which the fees were collected.
STUDENT FEE FUND
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2017 New Superintendent Orientation 7/18/2017 North Platte 7/20/17 Lincoln
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• Only Four Taxing Funds–General Fund–Special Building Fund–Qualified Purpose Undertaking
Fund–Bond Fund
Key Issues
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• Loans / Borrowing – Only between taxing Funds
• Close Out a Fund – Proceeds go to the General Fund
• Cannot make transfers to the Special Building Fund or Qualified Capital Undertaking Fund
• Questions on Use of Funds – Call Us
Other Key Issues
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School District Budget Process
Janice Eret
Preparing a Budget
No standard method for preparing a budget.
– Evaluate district needs• Board goals• Teacher raises• Building improvements or projects
– Budget to a Specific levy• Board sets maximum levy for district
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School District Budget CycleReview
Previous Year’s Budget
Get Board Input on
Spending and Levy
Draft Budget reviewed at
Budget WorkshopPublish
Hearing Notices &
Hold Hearings
Monitor Spending through
School Year
Amend Funds if going to overspend
before End of Year
2017 New Superintendent Orientation 7/18/2017 North Platte 7/20/17 Lincoln
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x
x
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Resources for Budgeting
Actual Expenses &
Receipts
Actual Expenses &
Receipts
What was actually
budgeted
What was actually
budgetedJuly Board
ReportJuly Board
Report
Audit ReportAudit
Report
Previous Year
Budget
Previous Year
Budget
Internal ReportsInternal Reports
• All information is keyed into worksheets
• Formulas in the worksheets populate information into:– Cover Page– Summary Pages– Hearing Notices– Schedule B
• General Fund Worksheet
Budget Worksheets
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$3,282,675
$152,22045%
Budget Based
Add:• SPED Budget• Grants• Expenditure
Exclusions
2017 New Superintendent Orientation 7/18/2017 North Platte 7/20/17 Lincoln
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LC-2
• Calculates budget authority
• Determines if budget is in compliance with Expenditure & Reserve Limitation
• Submitted through NDE Portal– New Activation Code
each year121
Unused Budget AuthorityBasic Concept:
Maximum that could have been budgeted to spend in the General Fund
MinusActually budgeted to spend in the General Fund
EqualsUnused Budget Authority
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Unused Budget Authority
• Unused Budget Authority carries forward into future school fiscal years
• May be advantageous for schools to have little or no 2017/18 Unused Budget Authority (LC-2 Line B-150)
• Provides more flexibility for future budgeting for district
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HUSKERVILLE PUBLIC SCHOOL 94-0099-000 Initial
2017/18
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2017/18 General Fund Budget of Disbursements
2017/18 Special Education Budget of Disbursements
2017/18 General Fund Lid Exclusions
2017/18 Unused Budget Authority
2017/18 Special Grant Funds
2017/18 General Fund Budget of Disbursement & Transfersand Unused Budget Authority
2017/18 Section A: Calculation of Total Allowable Budget Authority
64,683
3,347,358
3,282,675
3,347,358
4,500,000
3,347,358
700,000
202,642
0
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94-0099-000
2017/18
2015/16
127
250,000
IDEA & Title FundsState GrantsMedicaidShort Term Loans
IDEA & Title FundsState GrantsMedicaidShort Term Loans
2017/18 General Fund Budget of Disbursements
2017/18 Special Education Budget of Disbursements
2017/18 General Fund Lid Exclusions
2017/18 Unused Budget Authority
2017/18 Special Grant Funds
2017/18 General Fund Budget of Disbursement & Transfersand Unused Budget Authority
2017/18 Section A: Calculation of Total Allowable Budget Authority
64,683
3,347,358
3,282,675
3,347,358
4,500,000
250,000
3,347,358
700,000
202,642
3,347,358
0
Total Adjusted General Fund Budget of Disbursements & Transfers
45%
2,025,000
1,000,000
500,000
0
1,500,000
Allowable Reserves
130
Employee Benefit
Fund Cash Reserve
General Fund Cash Reserve
DepreciationFund
Necessary Cash Reserve Percentage
• Does not limit the amount a school district may have as Total Beginning Balance or Total Ending Balance
132
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LC-2 Online SystemError messages appear when information entered exceeds:District’s Access to Prior Year’s
Unused Budget AuthorityExpenditure LimitationAllowable Reserves
Percentage133 134
Budgets mailed or email will not be
accepted
Budgets mailed or email will not be
accepted
District Number: 94-0010District Name: Huskerville Public SchoolsClass: 3
Email sent confirming NDE received Budget docs Email sent confirming NDE received Budget docs
Upload feature appears after submitting LC-2 by clicking “District Approval”
Upload feature appears after submitting LC-2 by clicking “District Approval”
Budget Text
• Explanation of budgeting terms
• Provides statute reference
• Updated each year to incorporate Legislative changes
2017 New Superintendent Orientation 7/18/2017 North Platte 7/20/17 Lincoln
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What does a penny of my levy generate in Property Taxes?
Move decimal over 4 spaces to the left on district valuation
$350,000,000 valuation1 equals $35,000
139
Is the Levy Set Correctly???
• Make sure the levy set by the counties matches what your board has approved
• Contact the county clerk(s) immediately if you see a problem!
No Changes can be made after November 5 (Sunday)
140
Budgeting General GuidelinesOver-estimate expenditures and
under estimate receiptsRound to the nearest dollarUnspent budget increases beginning
balance for next yearSet Budget Hearing in early
SeptemberCheck spending in each fund in early
August
Expenditure exclusion requests sent in to NDE?
Use LC-2 while working on budget!
Is budget under spending, levy & reserve Limits?
Does the LC-2 & budget match?
Publish hearing notices – 4 day notice!
Hearing notices actually get printed in the newspaper?
Approve LC-2 after board approval.
Submit budget info to NDE, APA & County Clerks.
Submit Tax Resolution to County.
Was the tax request set correctly?
First Time AdministratorDeveloping a Budget
• Visit with out-going superintendent and NCSA Mentor
• Get to know business manager/bookkeeper/secretary
• Locate electronic and/or paper copy of budget, AFR, audit, valuation information
• Call NDE for help! 144
2017 New Superintendent Orientation 7/18/2017 North Platte 7/20/17 Lincoln
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New Superintendent Wrap upBryce Wilson
Audit Requirement
State Statute §79-1089 requires that a public accountant or a certified public accountant annually examine all financial records maintained by school districts.
Important part of Nebraska’s Transparency and Accountability Program.
146
Audit Requirements• Average Daily Membership must be
audited by your independent auditors.– Template available for auditors.
• School District must have individual capable of overseeing financial statement preparation otherwise:– Must hire acct firm to prepare f/s that is
different from the firm that audits the f/s.
147
• Collects Superintendent Contract Compensation detailed information as required by §79-2401 thru §79-2405
• Instructions to complete Schedule D included on Schedule D.
• A template for posting the Meeting Notice when contract/amendments are discussed and approved by local board is available on the FOS website.
• Publish in newspaper or post on school website
Superintendent Pay Transparency Act -- Budget Schedule D
148 149
Timeline required by statute:• At least 3 days before meeting, publish/post for
returning Supt:– Meeting notice detailing current costs and estimated
future costs– Proposed contract or amendments to contract (pdf)
• Within 2 days after board approval, publish/post for new Supt:– Entire approved contract (pdf)– Meeting Notice
Superintendent Pay Transparency Act -- Budget Schedule D
150
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Timeline required by statute:
• On or before August 1:– Submit entire approved contract (pdf) on Portal
• September 20:– Schedule D submitted with district budget
• October 1:– Withholding state & local funds started for schools
not submitting superintendent contract through NDE Portal (CDC)
Superintendent Pay Transparency Act
151
• $.535 per mile Effective Jan. 1, 2017 • Regular Resident District Students:
– $1.5248 per mile • Qualify if living 4 miles from school• Reimburse from 3 miles• One way travel once a day
• Enrollment Option Students– $.7624 per mile
• Qualify if on free lunch• Reimburse from 3 miles• One way travel once a day
Mileage Reimbursement Rates
152
Website AddressesNebraska Department of Educationhttp://www.education.ne.gov
Finance & Organizational Serviceshttp://www.education.ne.gov/FOS
Nebraska Department of Education Portalhttps://portal.education.ne.gov
NDE Payment Informationhttps://www.education.ne.gov/FOS/PaymentInformation/index.html
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• Administrators’ Days– July 26 & 27
• 8 a.m. – Noon• 1 p.m. – 4 p.m.
– Younes Conference Center –Kearney• Ruby Room - Second Level
Budget Assistance
154
Follow Bryce on Twitter bryce wilson@NDE_Finance
• School finance related reminders• Upcoming school finance due
dates• Legislative updates
155
NDE School Finance TeamBryce Wilson [email protected] 402-471-4320
Jen Utemark [email protected] 402-471-3323
Janice Eret [email protected] 402-471-2248
Bill Biven [email protected] 402-471-0526
Tom Goeschel [email protected] 402-471-3570
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