Budgets Helpful Hints 1/12/2019

Verify That Figures Match Budget Submitted To County Office Resolutions Verify That Figures Match Budget Submitted To County Office Typographical Errors Available Surplus May Change Taxes (Debt Service) Should Include Total Budget Operating Special Funds Debt Service Must Include Amount to be Received in Taxes 1/12/2019

Resolutions - Continued Include a Statement that District Used All Automatic Adjustments (Adjusted Prebudget Year Tax Levy and Enrollment Adjustment) Health Adjustment – Districts using this adjustment must include approval of amount in the Board Resolution approving Budget or in a separate Resolution Deferred Pension Contribution Adjustment - Requires approval of the adjustment in the resolution (applies to one district in Bergen County) Banked Cap - Requires approval of the use in the Resolution See specific wording under Banked Cap 1/12/2019

Report of District Status Required if District Adequacy Spending is “Above Expected Local Levy” Explanation must be reasonable Samples: The XXXXXX Board of Education provides a full and comprehensive program that addresses the intellectual, physical, artistic, and emotional needs of all students. While budgeting resources to implement the CCCS with adequate training, curriculum review, and staffing, we also provide a highly regarded Music, Drama and Art Program. We offer a robust STEM Program and Advanced Placement Programs. In addition, the Board provides programs in and out of district for students who are disabled 1/12/2019

Samples - Continued Unacceptable Status Statement The Board of Education has provided for reasonable class sizes, extra- curricular and athletic programs, advanced placement courses, online learning opportunities, preschool inclusion classes, self contained special education classes, full day kindergarten program and increased technology equipment and broadband Unacceptable Status Statement The high cost of living in the New York Metropolitan area and high costs out of district special education placements 1/12/2019

Adjustment For Increase in Health Care Costs Complete Health Benefits Worksheet Support Documentation Must Be Sent with Budget Materials Include: Written verification or estimate as applicable, of the rate increases for medical and prescription drug insurance from the insurance broker or insurer Summary schedule of invoices for the 12 months or 4 quarters, as applicable, prior to the adjustment request for medical and prescription drug insurance for the budget year Actual cost, if available, or estimated cost of medical and prescription drug insurance for the budget year 1/12/2019

Adjustment in Health Care Continued Include (continued) Summary schedule of medical and prescription insurance for the budget year and prebudget year (HMO, etc.), cost of coverage category (single, etc.) and number of employees in each plan category. DO NOT SEND EMPLOYEE SOCIAL SECURITY NUMBERS. Reimbursement required by employees, if applicable Written assurance that health benefit invoices are reviewed at least quarterly or that personnel and payroll systems contain controls to ensure that coverage and payments are made only for current eligible employees For districts not participating in the SHBP, provide detailed analysis of the cost savings achieved from the current provider and documentation to support alternative insurers were examined at least once in the past 3 years (N.J.S.A.18A:55-3a) 1/12/2019

Use of Banked Cap Review SFRA Calculations Tax Levy Cap Calculations to Ensure That You Have Used All Adjustments The District Must Use All of 2018-2019 Cap Adjustments Prior to Requesting Use of Banked Cap 1/12/2019

Use of Banked Cap - Resolution You Must Submit a Board Resolution Containing the Following: The need for and amount of the unused spending authority to be included in the base budget A statement that says need must be completed by the end of the budget year and cannot be deferred or incrementally completed over a longer period of time 1/12/2019

Use of Banked Cap - Continued The Amount of Banked Cap Requested is Only the Amount Used to Increase the Tax Levy The Earliest Year of Available Banked Cap is Utilized First. Utilization of Banked Cap is Recorded on Cap Banking Eligibility Document 1/12/2019

RECAP OF BALANCES Unassigned – Line 5 – 2017-18 Column Legal Reserve Less additional balance to be appropriated 2017-18 after February 1 In explanation column put in Extraordinary and/or Nonpublic Transportation Adjustment Legal Reserve Cannot have a balance unless there is a judgment that will be paid in FY 2019-20. Explanation should be included Capital Reserve If you have a balance you must budget interest 1/12/2019

Capital Reserve - Continued Withdrawal for Excess Costs and Other Projects. You must submit a Statement of Purpose with your budget and the Statement must be part of your advertised budget 1/12/2019

Statement of Purpose Included in Budget Line 620, Budgeted Withdrawal From Capital Reserve Excess Costs & Other Capital Projects are $xxx,xxx for other capital project costs for (district wording to describe the specific project(s) and purpose) The total cost of this project is $xxx,xxx which represents expenditures for construction elements or projects that are in addition to the facilities efficiency standards determined by the Commissioner as necessary to achieve the core curriculum standards 1/12/2019

Appropriations ADVERTISED TOTAL Lines that have +/- greater than 4% require an explanation (BOTH REVENUE AND APPROPRIATIONS The explanation should accurately reflect the plus or minus sign for example, a -4.8% should not be explained as an “increase” Be sure that the explanation reflects what is actually causing the increase of decrease If the increase/decrease is the result of a change in professional services, the explanation would not necessarily be salaries 1/12/2019

Appropriations - Continued “Reallocation of Salaries” is not acceptable explanation. “Redistribution and Staff Assignments According to GAAP Accounts” is not acceptable “Reallocated Two Teachers to Basic Skills” or “Reallocated Teacher to Regular Education Grades 1-5” are acceptable “Decrease Due to Retirement” is acceptable “ Includes FY 17-18 Retroactive Payment” is acceptable If the increase is Purchased Services, “Purchased New Software” is acceptable 1/12/2019

Appropriations - Continued “Less Purchased Services” is not acceptable When a person reads your explanation, they should have a somewhat clear picture of why you need or don’t need the dollars 1/12/2019

Position Control Must be: Organized by GAAP Code Show all Staff with their titles Show their respective salary costs Base Salary Stipends Overtime Substitutes, etc. Must Show vacancies on February 1, and show anticipated new hires and retirements for FY 19 1/12/2019

Position Control - Continued Account totals must reconcile with the amount budgeted SAMPLE 11-110-100-101 John Smith Kindergarten Teacher $55,000 Longevity $ 1,000 Mary Jones Kindergarten Teacher $75,000 Vacancy Kindergarten Teacher $44,000 Substitutes $10,000 TOTAL $185,000 (must equal budget) 1/12/2019

Contract Information for Select Staff As of January 1, 2018 Employee List Screen Must Include: Superintendent Interim Superintendent Assistant Superintendent Business Administrator Any other employee who makes more that $75,000 and who is not part of an association such as: Technology Supervisor Director of Facilities and Grounds Assistant Business Administrator Executive Confidential Secretary, etc. 1/12/2019

Continued Shared Services: Other Days (far right column): District issuing contract includes all information Shared Services district should put in Shared Services and contract date Other Days (far right column): Put in total days (holidays/recesses) and explanation Employee Benefit Screen: Should mirror Cost of Benefits Statement submitted with contract for approval Shared Services benefit page should report total amount paid under agreement 1/12/2019

Appendix D Use Appendix to ensure your budget submission is complete 1/12/2019

Budget Calendar April Election Thursday, March 8 – Last date to submit budget to Executive County Superintendent Sunday, March 18 – Last day to advertise for earliest public hearing Thursday, March 22 – Last day for Executive County Superintendent to approve budget Thursday, March 22 – Earliest date to hold public hearing Sunday, March 25– Last day to advertise public hearing 1/12/2019

April Election - continued Thursday, March 29 – Last day to hold public hearing on budget Friday, March 30 – Last day to adopt budget prior to election. At or after public hearing, but no later than 18 days prior to the April school election, the board shall fix and determine by roll call majority vote of the full membership the amount of money to be raised Any revenue and appropriation changes not discussed specifically and in detail at the public hearing shall not be included in adopted budget 1/12/2019

Budget Calendar November Election Tuesday, March 20 – Last day to submit budget to Executive County Superintendent Friday, April 20 – Last day to advertise for earliest public hearing Tuesday, April 24 – Last day for Executive County Superintendent to approve budget; The budget must be approved by the ECS prior to advertisement Tuesday, April 24 – Earliest date to hold public hearing 1/12/2019

November Election – Continued Thursday, May 3 – Last day to advertise for public hearing Monday, May 7 – Last day to hold public hearing Monday, May 14 – Last day to adopt budget. Any revenue and appropriation changes that were not discussed specifically and in detail at the public hearing shall not be included in the adopted budget 1/12/2019

Availability of Budget for Public Review Pursuant to N.J.A.C. 6A:23A-8.2, once a district submits the budget application to the ECS for approval, or by the statutory due date if that date is earlier, the district must make available for public inspection all budget and other documents listed in N.J.A.C. 6A:23A- 8.1. (The documents listed are numerous.) 1/12/2019

Budget Software Changes At this time there are no software changes 1/12/2019

Hyperlink The entire budget calendar can be found at http://www.state.nj.us/education/finance/fp/dwb.calendar.pdf Bergen County Office of Education Hole-in-One Resource 1/12/2019