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Preparing Your Budget to Meet the ASBO Meritorious Budget Award Criteria
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  1. Preparing Your Budget to Meet the ASBO Meritorious Budget Award Criteria Illinois ASBO Annual Conference May 20, 2010

  2. Presenters • Barrington CUSD 220 – 847-842-3500 • Gary Frisch CPA – Chief Financial Officer • MBA Reviewer – ASBO • George Lingel • PMA Financial Network, Inc. 630-657-6400 • Vladimir Dragosavljevic

  3. MBA Program • What is the MBA? • Best Standards in the Industry • Feedback from Reviewers – Experts • MBA Improves Community Perceptions • Toot Your Own Horn

  4. What’s in it for the Business Official • Build Solid Skills • Developing and Analyzing Budgets • Preparing Budgets using State of the Art Criteria • Feedback – Continuous Improvement • Recognition • Community • Board • Superintendent • Marketability

  5. What is in the MBA? • Four Sections • Introductory Section • Organizational Section • Financial Section • Informational Section • Six Page Criteria Checklist: • Criteria • What does an outstanding presentation need to have?

  6. The MBA Criteria • Makes it relevant • Uses the best standards in the industry • Shows relevance to the classroom • Uses narrative, charts, graphs and tables • Accommodates different levels of interest • Executive Summary to Greater levels of Detail

  7. Introductory Section • Is an executive summary of the organizational, financial and information sections. • It is meant to be a stand alone document which tells the complete story • It tells the story in narrative, numerical and graphical forms.

  8. Organizational Section • Information about your school district • Significant Financial and Budgetary Policies • Goals and Objectives of the Organization • Description of the Budget Process and the management of the Budget

  9. Financial Section • Presentation of all governmental funds • Use a Pyramid Approach • Describe significant revenue sources and significant expenditure categories • Describe District Goals and Objectives that are not met

  10. Financial Section • A pyramid approach should be used: a summary of all funds, followed by the presentation of individual funds • Optional: The presentation may be followed by program, location, and/or administrative unit budgets

  11. Informational Section • Information on taxes and assessed valuation • The Budget’s effect on the individual taxpayer • Three years of financial forecasts • Student enrollment • Personnel resource allocation • Student performance measures

  12. Benefits of the MBA • Business Manager’s Perspective • You will become more informed on all aspects of your Organization including instructional performance • You will be ready for any question from the public • You will have one document that contains everything from financial forecasts to enrollment projections to staffing allocations • You will have earned credibility with your Board and Community • Recognition by ASBO and your peers

  13. Benefits of an MBA • Positively viewed by ratings agencies • Standard and Poor’s Financial Management Assessment (FMA) areas of analysis • Revenue and Expenditure Assumptions • Budget Amendments and Updates • Long-term Financial Planning • Long-term Capital Planning • Investment Management Policies • Debt Management Policies • Reserve and Liquidity Policies

  14. Invest in Yourself • Your Document is Reviewed by a Certified MBA Reviewer • What does an MBA Reviewer look for? • Introductory section – An Executive Summary “liftable” • Organization section – Significant Board Policies • Financial section – Pyramid Approach • Information Section – Tax Information & Projections • Feedback – Constructive Criticism - meant to improve your budget for next year!

  15. Next Year Submittal • You must address the changes listed in the MBA review letter from last year in a separate letter. • New reviewer will look at the MBA document to see if the suggested changes have been made or reasons why a change cannot be made. • A reviewer will not be allowed to evaluate budgets from within their own state.

  16. Common Pitfalls • The Introductory section is not complete – It should tell the budget story without the need for the reader to look at the other sections. • Financial Section does not use the pyramid approach. • Beginning and Ending Fund Balances are missing.

  17. Reviewer Tips • Use the MBA Criteria Checklist and the Corresponding MBA Criteria Narrative to ensure you have met all the required criteria • Use a separate letter to explain why one or more of the criteria could not be met • Proof read your document • Use the same font through-out the document

  18. Improve Community Perceptions • Demonstrating a Comprehensive Fiscal Perspective • Demonstrating Transparency • Demonstrating Long Range Planning

  19. Benefits from a Financial Perspective • Given the current limited market for bond insurance, underlying credit ratings have become much more important for districts issuing debt • High Credit Scores can be linked to the same criteria listed in the MBA. • Strong Board Policies and Five Year Forecasting

  20. Facilities Plan

  21. Financial Section Samples

  22. Financial Section Samples

  23. Financial Section Samples

  24. Informational Section Samples

  25. Informational Section Samples

  26. Informational Section Samples

  27. Informational Section Samples

  28. Informational Section Samples

  29. Informational Section Samples

  30. Final Thoughts • Strive for Excellence • Invest in Yourself • Improve Community Perceptions

  31. Application Process • Submissions are due 90 days after budget adoption • Electronic or paper copies of the budget • Application Form • Criteria Checklist • Fee – ASBO member discounts, sliding scale based upon district size

  32. Application Mentors • Gary Frisch - 847-842-3514 • George Lingel -847-833-7899 • Vlad Dragosavljevic -630-657-6400 x 6410

  33. Questions And Discussion