BUTTE COUNTY OFFICE OF EDUCATION BUDGET BASICS BOOT CAMP: BASIC TRAINING Budget

1. How do I develop a budget? 2. How do I manage a budget and expenses?

Step 1: Background Information/Budget Cycle Step 2: PB Step 3: BID Step 4: Revenues Step 5: Expenses Step 6: Indirect Costs How do I develop a budget?

How do I develop a budget?: Step 1: Background Information The first step in developing your budget is to make sure you know which Fiscal staff support your budget and to know your role and their roles. The Fiscal support staff will: - Provide you with salary and benefit information - Enter your budget into the system - Make changes you request - Work with you to create a balanced budget

The Fiscal support staff will NOT: - Make decisions about your budget - Complete forms for you - Take responsibility for your budget The Program Manager is ultimately responsible for the development and administration of each budget. There is a complete Budget Operating Procedure on the BCOE Website under “Administrative Services”; select “Procedures” then select “Budget” How do I develop a budget?: Step 1: Background Information

The next step is to understand the budget cycle: First, this is how your Fiscal Representatives envision the budget cycle. How do I develop a budget?: Step 1: Budget Cycle

The budget cycle is an 18-month process for each budget and goes as follows: January – Governor proposes budget February – Fiscal staff prepares revenue estimates March - Program Managers determine staffing levels April – Original Budget Preparation Complete May – Governor proposes May revised budget June – Original Budget Adopted & State Adopts Budget July/August/September - Nothing How do I develop a budget?: Step 1: Budget Cycle

18-month Budget Cycle Continued: October/November – First Interim Budget Preparation Complete December – First Interim Budget Adopted January/February – Second Interim Budget Preparation Complete March – Second Interim Budget Complete April – Estimated Actual Budget Preparation Complete June – Estimated Actual Budget Adopted How do I develop a budget?: Step 1: Budget Cycle

The annual budget cycle, with specific dates, can be found on the BCOE website, under “Administrative Services” under “Budget Info” in the “What’s New” section. How do I develop a budget?: Step 1: Budget Cycle

How do I develop a budget?: Step 2: PB The next step is to review your position budget (PB) - The PB is a list of salary and benefit costs generated by Fiscal Services from the payroll system BusinessPlus (aka IFAS) - To change your PB, simply tell your Fiscal representatives what, specifically, you want changed and they will change it for you and notify you when the change is complete

How do I develop a budget?: Step 2: PB

How do I develop a budget?: Step 3: BID Once your PB is finished, it will be rolled into Budget Item Detail (BID). BID is a budget development tool that holds your PB information as well as any other budget information you will need. BID also features: - the ability to put in notes on each entry - multiple entries for single Org Key-Object Code combinations; this allows for the budgeting of individual revenues and expenses, not just the net amount

How do I develop a budget?: Step 3: BID Like PB, to change your BID, simply tell your Fiscal representatives what, specifically, you want changed and they will change it for you and notify you when the change is complete See your BID handout to see a completed BID budget

How do I develop a budget?: Step 4: Revenues Revenues are the funds BCOE receives to operate specific programs. They are in the 8000 series of Object codes. Revenues can be from: - Federal Government - State Government - Public and Private Agencies - Other Local Education Agencies (LEAs) - Donations

How do I develop a budget?: Step 5: Expenses Expense are in the series of Object codes.

How do I develop a budget?: Step 6: Indirect Costs Indirect Costs is a method of collecting funds to pay for organizational overhead. This includes Fiscal, Human Resources, Payroll and Technology staff, the Superintendent, Internet service, and other organization-wide costs. Your Fiscal Services representatives will calculate and charge your indirect costs for you. The indirect cost rate for is 6.06%.

How do I develop a budget?: Step 6: Indirect Costs Indirect Costs are a lot like California Sales Tax. - Like sales tax, indirect costs are based on expenses, uses a set % rate, and some expenses are excluded from indirect costs - Unlike sales tax, the indirect cost rate changes annually and some programs have static, permenant indirect cost rates. - On the BCOE website, there is an indirect cost calculator under Administrative Services/Forms Index/BSF 111: Indirect Cost Calculator

How do I manage a budget and expenses?

How do I manage a budget? Managing a budget involves a number of regular checks and adjustments to be done by the Program Manager and staff. These checks include: - Comparing the budget to the actual expenses - Drilling Down and view actual expenses - Searching for out-of-place expenses - Adjusting the budget as needed - Managing Purchase Orders

Cost Center Reports Once your budget is completed in BID, it is rolled into the General Ledger. You can run a Cost Center report in the General Ledger to view your: Net budget Net actual revenues and expenses Actual transactions including scanned invoices Net encumbrances Complete record of encumbrance activity

Budget Revision To change a budgeted item, you will need to complete a budget revision form. This form and complete instructions can be found at: under Administrative Services, Form Index, “BSF 73: Budget – New or Revision”. - A budget revision can be made via paper, meeting notes or .

Expense Revision To change an expense, you will need to complete a journal entry form. This form and complete instructions can be found at: under Administrative Services, Form Index, “BSF 36: Journals”. - A Journal Entry can only be made via paper with a physical signature.

Future Training We will be holding a Budget Basics Boot Camp: Advanced Training in the near future (you will all be contacted) Fiscal Services is always willing to provide on- demand one-on-one training at your desk, just one of us and we will get you set up