1 Finance/Budget Overview: Grant Wood AEA Barb Harms Business Manager Grant Wood Area Education Agency Management Team Meeting – 12/1/06

2 Review - AEA/LEA Finance n What is common? –State funding based on number of students –Other revenues from grants, misc sources –Allowable growth –Weighted enrollment

3 Review - AEA/LEA Finance n What is different? –Schools have taxing authority, AEAs dont –LEA finance formula is more complex –Schools have separate funding sources for facilities & other costs –AEAs generate revenues from sales of non-mandated services

4 GWAEA Budget Process Oct/NovVerify Allowable Growth % LEA Enrollment count DecEstimate available funds Set budget parameters JanPrepare State budget, hold public hearing, Board approval Feb - MayNegotiate contract settlements Prioritize funding requests Jun - JulBuild line-item budget New budget takes effect

5 Historical Financial Trends

6 AEA Finance Formula: n Child-based: allowable spending is based on number of students counted n AEA cost per pupil X enrollment n Formula is separate for 3 service areas (Media, Ed Services, Special Education) n State has not released final budget enrollment figures – usually 12/1

7 Special Education$16,754,381 Media Services$ 2,927,692 Educational Services$ 3,213,132 State Reduction$ (1,999,562) Controlled Funding$20,895, Budgeted Revenues

8 Projecting Other Revenues: n Federal funds – IDEA, Part C, etc. n Various other state, local grants n Sales of non-mandated services (such as printing, computer services, SEMS) – look at trends of past revenues

9 Sale of Service Revenues

Budgeted Revenues

Budgeted Expenditures

12 Historical Financial Trends n Financial Solvency Ratio n Standard measure of financial health n Formula = Unreserved Fund Balance General Fund Revenues Target Range:Preferred 5.0 to 10.0% Acceptable 0 to 4.9% Alert -3.0 to -0.1%

13 Historical Financial Trends

14 GWAEA Budget/Finance n Next update – look at web finance query system and account code structure n Questions?