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Effective Budget Presentations. Michael D. Abild, CPA Assistant Superintendent of Business & Support Services San Marcos Consolidated Independent School District TASBO 2010 Budget Academy January 14/15, 2010. Introduction. Budget Basics. Legal Requirements for Budgets.
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Effective Budget Presentations Michael D. Abild, CPA Assistant Superintendent of Business & Support Services San Marcos Consolidated Independent School District TASBO 2010 Budget Academy January 14/15, 2010
Legal Requirements for Budgets • Sections 44.002 through 44.006 of the Texas Education Code. • Superintendent is the district budget officer. • Superintendent must prepare, or cause to be prepared, a proposed budget by August 20 of each year (June 19 if a “June 30 district”). • According to the Comptroller, the Board should approve a proposed tax rate to include in its publication (discussed below). • The board president must call a public meeting to discuss the budget and tax rate. • At least 10 days, but not more than 30 days, before the public meeting, the NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE must be published (in newspaper) in strict accordance with the requirements of Section 44.004 of the Code.
Legal Requirements for Budgets • Concurrently, district must post summary of proposed budget on the district’s web-site. Summary must include comparison to prior year’s actual spending and information on per student and aggregate spending on Instruction(11,12,13, 95), Instructional Support (21, 23, 31, 32, 33, 36), Central Administration (41), District Operations (51, 52, 53, 34, 35), Debt Service (71), and Other (61, 81, 91, 92, 93, 97, 99). • Post notice of meeting under Open Meetings Act (72 hrs.) • Conduct the public meeting • Any taxpayer in the district may be present and participate in the meeting • Board may hear public comments, discuss the budget, adopt the budget, and adopt the tax rate at the same public meeting. • Adopt the budget • ***NEW*** Post a copy of the adopted budget on the district’s web-site. Web-site must prominently display the link to the budget. Budget must be maintained on the web-site for three (3) years after adoption.
Legal Requirements for Budgets • No funds may be expended other than as provided for in the budget. The board must amend the budget, as necessary, before exceeding a functional category. • The budget must be prepared in accordance with GAAP, as well as Federal, State, and local requirements. • The budget must include the General Fund, the Food Service Fund, and the Debt Service Fund, at a minimum. • Budget must be adopted before the tax rate may be adopted (may be the same meeting). • ***NEW**** For 2011, a school district may adopt a tax rate based on “certified estimated property values” before adopting a budget (HB 3646). Must publish two (2) notices and hold two (2) hearings. • Budget must be adopted by August 31 (or June 30). • The budget, once adopted, must be filed with TEA through PEIMS and the Annual Financial & Compliance Report.
Legal Requirements for Budgets(The “65% Rule”) Repealed! • Section 44.011 (TEC) requires the Commissioner to annually establish expenditure targets for school districts. • “If the board of trustees of a school district intends to exceed the proposed expenditures established by the commissioner… the board must adopt and publish a resolution that includes an explanation justifying the board’s action.” • Spending categories are Instruction (11, 36, 93, 95), Leadership (21, 23), Student Support Svs. (12, 13, 31, 33, 34, 35), Administrative (41), and Non-Student Support Svs (51, 52, 53). • Eight (8) “school types.” • 2009 guidelines requires all districts to expend 65% of funds on Instruction. Other expenditure target categories allow for variances with a defined range (25%!!!). • Little guidance… resulting confusion regarding when the resolution should be adopted and its wording.
“Budget Message” • Your budget “tied up with a bow.” • Provides a complete picture of the budget and a comprehensive “budget solution.” • Includes narrative discussions. • Includes charts and graphs. • Includes exhibits with details. • Readable and understandable for board members and the public. • Ready resource for budget inquiries from board members, staff, the press, and the public.
Presentation Tips And…
Presentation “Tips” • Speak clearly and slowly… especially when starting out. Yes, you’ll be nervous… • Begin budget workshops by explaining that “We will not be asking you to approve the budget at this meeting.” • Know your audience… especially board members! • Practice your presentation. Time yourself!!! • Organize a Board budget committee…seek “buy-in” for major budget parameters. • Tell the Board and audience about the budget… but don’t confuse them with too much detail. • Keep the “big picture” in mind.
Presentation “Tips” • Avoid technical descriptions, code numbers, acronyms, “accountant-speak,” and too much detail. • Don’t hesitate when presenting “difficult material” or dwell on controversial topics… move on!!! • Present a “solution”… not just a budget. • You’re presenting a budget… not teaching an accounting course. • Simplify… but be able to provide detail. • Be conservative… only present bad news once.
Real? Or, Not Real? • Aunt Jemima • Real (Former slave, Nancy Green) • Little Debbie • Real (O.D. & Ruth McKee’s granddaughter, Debbie) • Chef Boyardee • Real (Ettore “Hector” Boiardi) • Baby Ruth • Real (Grover Cleveland’s daughter??? Or Babe Ruth???) • Betty Crocker • Not Real (Despite hosting popular radio show) • Sara Lee • Real (Charlie Lubin’s daughter, “Sara Lee”) • Mrs. Butterworth • Not Real (Mary Kay Bergman was voice of Mrs. Butterworth) • Wendy • Real (Melinda Lou “Wendy” Thomas) • Colonel Sanders • Real (Kentucky service station owner, Harland Sanders) • Uncle Ben • Probably not real (Image is Frank Brown, a Houston maitre d’)
