Budget Development
Kern County
Superintendent of Schools
Division of Administration and Finance
What is a budget?

Spending Plan

Critical Financial Management Tool

District Goals and Priorities
Expressed in Dollars
Major Budget Variables
Student Enrollment
 Student Attendance
 School Facilities
 Educational Funding/Revenues
 Program Expenditures
 Board Priorities

When is it due?

Single Adoption


July 1st
Dual Adoption

September 8th
What to file?

Source – SACS software
Adopted Budget for all Funds
 Average Daily Attendance (Form A)
 Revenue Limit Summary (Form RL)
 Technical Review Checklist (Form TRC)
 Criteria and Standards Review (CS)
 Summary of Interfund Activities for all
funds (Form SIAAB)

What to file?

SACS (con’t)


Certification of Budget Adoption with
required 2 signatures
Multi-Year Projection
SACS
 School Services
 Excel Spreadsheet
 Include detailed assumptions

What we look for…

Budget Review checklist

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
Certification page submitted and signed
Summaries of interfund activities agree with
transfer detail in all funds
Form A: Estimated Actuals agree with school
district attendance reports and budget ADA
agrees with form RL
What we look for…

General Fund Review: Actuals and Budget
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Verify that summary/detail totals agree
Verify that the restricted columns on page 2,
line F, are zero or positive
Verify that any contributions to restricted
programs were entered on the detail pages
and agree with the summary page
Verify that the ending balance for the prior
fiscal year, line F2, equals the beginning
balance for new fiscal year line F1a
What we look for…

General Fund Review: Actuals and Budget



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Verify that the current year beginning
balance, line F1a, equals the ending balance
reported to the CDE last year
Verify that the components of ending balance
equal line F2
Verify that apportionment, object 8011,
agrees with the form RL
Verify that property tax accounts, 8021-8089,
equal the amount listed on the form RL, line
25
What we look for…

General Fund Review: Actuals and Budget


Verify that the PERS reductions are entered
on page 4 (8092), offset on page 7 (38xx)
and agrees with the form RL, line 21.
Remember that the offset of expenditures
may be divided up among the various funds
Verify that Special Ed, Continuing Ed,
Community Day school ADA transfers are
entered on page 4 (8091)
What we look for…

General Fund Review: Actuals and Budget

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Accounts 5710 and 7310 net to zero in
columns C and F
Accounts 5750 and 7350 are offset with equal
amounts in special funds
Revenue limit summary submitted and
agrees with the general fund
Verify that SACS forms match budget
reports (BDX110)
TRC check
Reasonable Budget Estimates

Reasonable Budget estimates for
Revenue limit sources (ADA)
 Federal sources of revenue
 State categorical revenues
 Local sources of revenue
 Certificated salaries
 Classified salaries

Reasonable Budget Estimates

Reasonable Budget estimates for
Employee benefits
 Books and supplies
 Services
 Capital Outlay
 Other Outgo
 Transfers
 Other sources/Uses

Criteria Standards review

Criteria Standards review
ADA variance
 Deficit variance
 Minimum reserve level
 Fund balance trend
 Contingent liabilities
 Use of one-time resources
 Special Ed funding

Criteria Standards review

Criteria Standards review
Multi-year commitments
 Contributions to restricted programs
 Retiree health and welfare liability
 Temp borrowing between funds
 Capital Projects
 Collective bargaining status

Multi-Year Projection

Multi year Projection
Enrollment and ADA trends
 Health and Welfare % increases (unless
capped)
 COE billback
 Deficit spending projected in the two
out years?
 Does the projection satisfy the reserve
requirement in the next two out years?

Other Checks

All other funds




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Verify that summary/detail totals agree
Verify that the ending balance for prior year, line F2,
equals the beginning balance for the new year, line F1a
Verify that the new year beginning balance, line F1a,
equals the ending balance reported to the CDE last year
Verify that the components of ending balance equal line
F2
Criteria and Standards submitted
Verify that software matches budget reports
Estimating Actuals

What is my ending balance going to
be?
Unrestricted
 Restricted


Estimated ending balances in
current year becomes the beginning
balances in the budget year.
Revenue Limit – Form RL

The form RL draws data from the
following sources:



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K12 (P2 for unaudited, P1 if the P2 is not yet
available)
P2 School District Attendance report
P2 J29 – Statement of Taxes
RL Estimate provided by COE
Form RL – cont.
The Form RL revenue limit ADA
should agree with Form A.
 The Form RL State and local
property taxes should agree with
form 01.
 PERS reduction (line 21) should
agree with object 8092, and total
object 3800-02 in all funds.

AB 1200 Guidelines

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Fiscal Monitoring Guidelines
Sets Standards for Budget Review and
Monitoring
County Office Powers and Responsibilities
Criteria and Standards
Greatly Enhances Fiduciary Management
Statewide
AB 1200 Guidelines

Self Certification at Each Phase of Budget
cycle


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Budget Adoption
Interim Report Periods
Certification



Positive
Qualified
Negative
AB 1200 Guidelines
Three Major Certifications

Positive



Qualified


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Will Complete Year with Positive Fund and Cash Balance
District is solvent and can meet obligations
May not Complete Year with positive fund and/or cash
balance
Financial Indicators require scrutiny – modest
intervention
Negative


Will not complete year with positive fund/cash balance
Financial Indicators require aggressive action
AB 1200 Guidelines

County Office




Reviews each District Certification
May change the district certification if the
situation warrants
Reports findings to the State Controller
Various actions available to County Office
• Assign a fiscal advisor and/or
• Budget Review Committee
Budgeting for Categoricals

The Keys – Single Adoption
Estimating what the ending balance or
carryover will be for each categorical
program
 Knowing what new $ will be in the new
year
 SACS software requires that grant
programs are balanced. Revenues must
equal expenditures

Helpful Hints
Reduce program encroachments as
much as possible
 Consider charging programs and
other funds an indirect cost rate to
cover the cost of administration
 Others?

Questions?
Questions?

If you have any questions regarding budget
development please feel free to contact us for
additional help.

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Steve Mattern 636-4691
Kim Baehr 636-4617
Maxx Garris 636-4641
Robert Harte 636-4689
Maria Rameriz 636-4494