Budgeting, Cost Accounting & FTE July 16, 2018 Leadership Conference

Budgeting, Cost Accounting & FTE Latalia Weaver– Budget Coordinator Joe Strohfus – Student Projections & Budgeting Analyst Maureen Mason – Budget Analyst Maria Mair-Cangieter – Financial Analyst Mary Guttinger – FTE Specialist Elaine Sims – FTE & Cost Acct. Analyst Karen Strickland – Director

Budgeting, Cost Accounting & FTE FTE (Full Time Equivalent) FTE is the basis for school district funding through the FEFP (Florida Education Finance Program) FTE refers to one student attending public school full time (180 days) in regular term

Budgeting, Cost Accounting & FTE FTE (Full Time Equivalent), cont. To qualify for FTE funding, a student must be in MEMBERSHIP (enrolled) at least one day during the survey week; and the student must ATTEND at least one of the eleven days during either pre- survey week or survey week

Budgeting, Cost Accounting & FTE 2018-19 FTE Survey Dates Survey 2: October 8-12, 2018 Survey 3: February 4-8, 2019 FTE Amendment process FTE Amendments and final update period for districts to submit changes to DOE Survey 2: Final update December 15, 2018 Survey 3: Final update April 15, 2019

Budgeting, Cost Accounting & FTE FTE Audits Audits conducted by Auditor General’s Office Audits no longer on a 3-year cycle 2015-16 FTE audit (our most recent FTE audit) 2017-18 MAY be the next year to be audited

Budgeting, Cost Accounting & FTE FTE Audit – Penalty of the last six AG Audits

Budgeting, Cost Accounting & FTE Student Membership/FTE Projections Process Projections are developed during October- December time frame

Budgeting, Cost Accounting & FTE Student Membership/FTE Projections Process (cont.) Process milestones: Starts with projections using actual October student membership count Membership projections are updated by Budgeting based on recommended changes from the Principals and Assistant Superintendents October FTE survey data is used to convert membership projections into FTE projections

Budgeting, Cost Accounting & FTE Student Membership/FTE Projections Process (cont.) Process milestones (cont.): Assistant Superintendents provide recommended FTE projection changes Budgeting submits FTE projections to FLDOE in December

Budgeting, Cost Accounting & FTE What is a Budget? A budget is a plan for using resources “School-Based” decentralized process Operating Fund’s Revenue Sources Federal: Medicaid Reimbursement Federal Impact Aid

Budgeting, Cost Accounting & FTE Federal Impact Aid Survey What is Federal Impact Aid – compensation from the Federal Government for federal property that has been removed from the local tax rolls Over the last 68 years, the Brevard School District has received over $136 million District uses Impact Aid funds to help pay for day-to-day operating expenses Impact Aid forms are completed for every student enrolled Beginning in 2017-18, the forms were prepopulated with pertinent information (student name, school, grade, and teacher)

Budgeting, Cost Accounting & FTE What is a Budget? (cont.) Operating Fund’s Revenue Sources, (cont.) State: FEFP (Florida Education Finance Program) Class Size Reduction Allocation Local: Ad-Valorem (Property) Taxes Interest

Budgeting, Cost Accounting & FTE What is a Budget? (cont.) All interested stakeholders are involved in the budgeting process Each school is responsible and accountable “School-Based” funds are carried forward from one year to the next (good or bad) “School-Based” allocations include materials, supplies and substitutes The school allocates select funds as appropriate on their “budget matrix”

Budgeting, Cost Accounting & FTE What is a Budget? (cont.) Labor is determined by implementing the Board approved District Staffing Plan

Budgeting, Cost Accounting & FTE What is a Budget? (cont.) Accomplishes the following: Decisions concerning spending are made at the level closest to the student Schools may save funds from one year to the next Schools have flexibility to achieve educational objectives unique to their school

Budgeting, Cost Accounting & FTE What is a Budget? (cont.) Accomplishes the following: School personnel are more knowledgeable about the total budgetary process and have a greater awareness of available methods for utilizing resources

Budgeting, Cost Accounting & FTE What is a Budget? (cont.) Budget Calendar Governor and State legislature agree on budget TRIM Ad (this coming Saturday, July 21st) Two Public Hearings on Millage and Budget July 26, 2018 September 6, 2018 FEFP Calculations provide details on Brevard’s portion of the state budget

Budgeting, Cost Accounting & FTE 911 Report used to Manage “School-Based” Budget Review on a weekly basis - errors are more readily identified by you Cover all negatives within a project with positive balances - this helps reduce the possibility of overspending Project rules apply - your bookkeeper should have the latest Project Manual Projects - If there are any questions concerning a project, please contact the project manager or Budgeting

Budgeting, Cost Accounting & FTE Accounting Code Booklet Schools Departments Operating Fund Projects Functions Objects Program Category Codes Used to describe expenditures per the Financial and Program Cost Accounting and Reporting for Florida Schools (Red Book)

Budgeting, Cost Accounting & FTE Online Resources Staff Contact Information FTE Manual ESE Checklist ESOL Checklist Impact Aid Instructions Accounting Codes Manual Adopted Budgets (1998-99 to present)

Budgeting, Cost Accounting & FTE 2018-19 Budget Timeline But first, let’s take a look at the next steps in the budget process….

Budgeting, Cost Accounting & FTE Changes made to 2017-18 Department Budget Process Budgets “scrubbed” using 5-year historical data CFO conducted 1-on-1 meetings with Cabinet Members Changes made to Carry Forward rules

Budgeting, Cost Accounting & FTE Changes made to 2018-19 School Budget Process Changes made to staffing plan New allocation for schools’ operating budget (001002 & 001147) New allocation for substitutes (011160)

Budgeting, Cost Accounting & FTE School Board Budget Workshops Board Prioritized initiatives into critical, very high, high, and non-recurring categories Categories were never ranked lowest to highest due to changes made by the Legislature in response to the Stoneman Douglas High School tragedy. Two new categoricals were created that absorbed much of the new year budget – additional SROs ($2.2m) & Mental Health Assistance Allocation ($1.7m) – State SRO funding insufficient to cover cost

Budgeting, Cost Accounting & FTE Items still to be determined Staffing needs 6-Day count adjustments Second calculation of the FEFP Ending fund balance for FY 2017-2018