1

 

FINANCIAL PLANNING AND BUDGETING

 

January 20

, 200

9

 

 

To:

 

 

Board of Education

 

From:

 

 

Superintendent

-

DCSD

 

Regarding:

 

ANNUAL

MONITORING REPORT

–

EL 1.5

 

FINANCIAL PLANNING AND BUDGETING

FOR 2008

-

2009 SCHOOL YEAR

 

 

I hereby present my monitoring report on your

F

inancial Planning and Budgeting

in accordance with the

monitoring schedule set forth in board policy. I

 

certify that the information contained in this report is true.

 

 

Signed:________________________, Superintendent

Date

:

January 15, 2009

 

 

EL 1.5 Fi

nancial Planning and Budgeting

 

Financial planning may not deviate materially from the Board’s Ends priorities, risk financial jeopardy or

fail to be derived from a plan projecting at least five years.

 

 

Interpretation

:

 

The District’s annual budget submitted

to and adopted by the Board of Education

by June 30

th

each year will align with the Ends priorities identified by the Board each year. The

plan shall not risk financial jeopardy; accordingly the District will maintain an ending fund balance

greater than o

r equal to 5% of the budgeted revenues in its General, Capital and Insurance

Reserve Funds. Other funds in the plan shall maintain positive balances to ensure the obligations

of the upcoming year are met. The plan will be derived from at least a five year

projection.

Appendix C lists the General Fund Five Year Projection in relation to the Ending Fund Balance as

a percent of total revenues.

 

 

REPORT

 

 

 

 

The Annual Financial Plan does not deviate from the Board’s Ends priorities as evidenced by the dollar

am

ount allocated for instructional expenditures on a per

-

pupil and a total dollar instructional basis.

 

      

 

      

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Direct Instructional Expenditures 63.6% 63.2% 64.3%

65.0%

 

As a Percent of Total General Fund

 

 

 

*

Increase in pupil count is attributed to 52,081 for regular District students and 4,250 for online students.

*

Online students incur a flat base amount of revenue per pupil as opposed to regular District students

that generate a base amount per pupil doll

ar amount plus additional factors and weights sensitive to the

District’s unique makeup (i.e. size factor).

 

 

I report compliance.

 

 

 

---

2

 

 

 

 

The Superintendent shall not:

 

EL

1.5

.

1

Present an annual budget that risks incurring those situations or conditions des

cribed as

unacceptable in Executive Limitation 1.6 “Fiscal Management and Controls.”

 

 

Interpretation

:

The adopted budget includes staff and dollar resources to enable the District to:

(a) pay obligations in an accurate, complete and timely manner; (b) comp

ly with purchasing

requirements; and (c) exercise adequate controls as identified within EL 1.6.

 

 

REPORT

 

 

 

Resources to Meet Conditions of EL 1.5

 

 

FY 2008

-

2009

 

FTE

 

BUDGET

 

% OF TOTAL

BUDGET

 

PERFORMANCE

MEASURES

 

FY 07

-

08

 

Results

 

Accounts Payable

 

7.00

 

$343

,208

 

.08%

 

8

2

% within 30 days

 

9

1

% within

45

days

 

98% within 90 days

 

2% > 90 days

 

Meets

 

 

 

Payroll

 

6.00

 

$393,079

 

.09%

 

Payroll completed by

the 20

th

of each

month.

 

100%

 

Purchasing

 

9.40

 

$622,204

 

.14%

 

Document cost

savings of a least 3

times the depa

rtment

budget.

 

 

Achieve National

Institute of

Governmental

Purchasing Agency

Certification.

 

(NIGP is the entity

establishing industry

standards and

thresholds for

certification).

 

Yes

 

 

 

 

 

Yes

 

 

Finance/GL/Auditing

 

5.65

 

$571,937

 

.13%

 

The annual audit and

sin

gle audit opinions

issued by an

independent, e

xternal

auditor are

unqualified.

 

 

FY 07

-

08

Audit

presented

12

-

16

-

08.

 

 

 

 

 

 

 

 

Other Resources:

 

 

As defined in C.R.S. 22

-

44

-

102, a contingency is defined as an event which could not have been

reasonably foreseen

at the time of the adoption of the budget. Annually, in order to meet such

unforeseen expenditures, the District’s budget allocates contingency dollars. For Fiscal Year 2008

-

2009 contingency funds in the amount of $850K were set aside to meet any such Di

strict

obligations.

 

 

              

 

I

report compliance.

 

---

3

 

 

The Superintendent shall not:

 

 

EL 1.

5

.

2

Present an annual budget with too little information to enable credible projection of revenues and

expenses, separation of capital and o

perational items, cash flow projections and disclosure of

planning assumptions.

 

 

Interpretation

:

 

The annual budget (defined as General Fund and all Other Funds) presented

considers revenue assumptions from Legislative Council and Office of State Planning

and

Budgeting that validates the credibility of the expense projections. District projection assumptions

were provided for the annual budget and will be revised as new information is received.

 

 

 

To prepare budget projections for the ensuing and subsequent

fiscal years, the District shall

develop and disclose the assumptions underlying forecast source(s) and use(s) of funds.

Consistent with the suggested practices of CDE’s Handbook, this includes the following:

 

 

a. Beginning Fund Balance

 

 

i.)

 

A best estim

ate of the end

-

of

-

year fund balance(s) shall be carried forward to the

 

 

 

ensuing year as a beginning fund balance(s).

 

 

ii.)

 

If any portion of the beginning fund balance is used to cover expenditures, inter

 

 

 

fund transfers, or reserves, a “specific resolu

tion” shall be adopted by the Board

 

 

 

 

authorizing the use of that portion of the beginning fund balance in the budget.

 

 

 

 

b. Revenues

 

i.)

 

Revenues from the Public School Finance Act of 1994 are estimated upon five

primary factors:

 

 

 

*

Funded pupil enr

ollment count

 

 

 

*

Specific ownership taxes

 

 

 

*

District’s assessed valuation

 

 

 

*

Allowable mil levy

 

 

 

*

Per pupil funding

 

 

c. Expenditures

 

i.)

 

Districts must allocate the statutorily defined minimum dollar amount per pupil for

instructional supplies and mate

rials and other instructional purposes.

 

 

ii.)

 

Salaries, both current and anticipated, for full and part

-

time employees are to be

 

 

 

calculated using the District’s existing and projected staff levels and the timing of

 

 

 

salary increases, if any, upon ex

isting salary schedules.

 

iii.)

 

Benefits will be calculated based upon number of eligible staff and the specified

amounts required to be budgeted to fund mandated and elected benefits.

 

iv.)

 

District operating costs are to be calculated using current estimat

es as

determined by historical data, projected use and the program/service level to be

provided in future periods.

 

 

d. Transfers/Allocations

 

Transfers of any unencumbered monies from one fund to another shall be accomplished

in the context of the bud

get resolution. Allocations will be made by the statutorily defined

minimum dollar amount per pupil to Capital Reserve and Insurance Reserve Funds.

 

 

e. Reserves

 

District shall set aside the Board of Education required 5% of budgeted revenues, which

is i

nclusive of the constitutionally mandated TABOR reserve (3% or more of fiscal year

spending).

 

 

f.

 

Cash Flow Projections

 

There are several components that make up the process for cash flow projections as

follows: review prior year history, estimate beginning

year cash balances, estimate

current monthly expenditures and revenues and estimate the monthly cash flow on the

annual budget. Cash flow projections will be provided in conjunction with the state

-

loan

program.

 

 

---

4

 

 

REPORT

 

 

 

a. Beginning Fund Balance

 

i.)

 

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* Change in accounting method

 

---

5

 

    

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---

6

 

d. Transfers/Allocations

 

 

Appendix B lists FY 2008

-

2009 Resolution Authorizing Borrowing Unencumbered Money From

Other District Funds.

 

 

Per Pupil Cap/Ins Reserve Dollars

 

FY 2008

-

200

9 Budget

 

$29

8

Per Pupil Required

 

$1

4

.

5

M Total Allocation

 

Cap Reserve: $10.

7

M $22

6

/pupil (76%)

 

Ins Reserve: $3.

5

M $7

2

/pupil (24%)

 

 

 

e. Reserves

 

 

Appendix C lists the General Fund Five Year Projection which shows the Board of Education

requir

ed reserves of 5% are met.

 

 

 

f. Cash Flow Projections

 

 

Appendix D provides information explaining the components utilized in the FY 2008

-

2009 cash

flow projections.

 

 

 

Additional Resources: Oehms, Inc. for staffing and salary information

 

          

Office of State Planning and Budgeting

 

Mountain States Employees’ Council for salary information

 

State Legislative Council for inflation factors

 

RBC Capital Markets for financial advice

 

Mercer Human Resource Consulting for benefit

cost projections

 

Colorado Department of Education for per pupil funding projections

 

Douglas and Elbert Counties for property tax estimates

 

DCSD Planning Department for student enrollment forecasting

 

FY 2008

-

2009 Budget Process Calendar

 

 

 

 

I r

eport com

pliance.