1. Budget Training Paula O’Neil, Director of Finance Paula.oneil@midlandisd.net 432-240-1903

2. State Requirements No funds may be expended in any manner other than as provided for in the adopted budget. Official district budget must adopted at FUND and FUNCTION categories. Must include LOCAL, FOOD SERVICE, DEBT SERVICE and CAPITAL PROJECTS.

4. Your Responsibility As the budget manager, you are responsible for: assessing your departmental needs to meet district goals and objectives. tracking your accounts to ensure that you have adequate allocations to meet expenditures.

5. My Responsibility To provide guidance to budget managers to ensure that all budgets adhere to GAAP and state/fed regulations. To consolidate and report budget information to the public, TEA, budget users and the board of trustees.

6. Using ITTCS Finance application 1) WFN5915 - view your account balances and detail 2) WFN7430 – secretary input for online budget transfer 3) WFN7420 – Budget Manager approve online budget transfers Warehouse application 1) WWH6125 - secretary enters purchase order 2) WWH6320 – Budget Manager approve online purchase orders Peggy will talk about some of these later in this presentation.

7. Account Code Review Fund-Function-Object-SO-Campus-Year/Intent EX: 199-21-6399-00-999-6 /99 199 – Fund number 21 – Function number 6399 – Object number 00 – Sub object number 999 – Org/campus number 6 – Current Year (2015-2016 equals 6) 99 – Program Intent number

8. Rule of Thumb Fund Codes 1xx – Local Funds (199 general fund) 2xx – Federal Grants (211 Title I) 3xx or 4xx – State Grants

9. Function Codes 11 – Instructional 12 – Instructional Resources (Library) 13 – Staff Development 21 – Instructional Administration 23 – School Leadership 31 – Guidance & Counseling 33 – Health Services

10. Function Codes, cont. 36 – Extra Curricular Activities 41 – General Administration 51 – Plant Maintenance and Operations 53 – Technology and Information Services

11. Object Codes 61XX – Payroll 62XX – Contracted Services 63XX – Supplies 64XX – Travel/Other Expenses Common Codes: 6119-Professional Salaries6118-Extra Duty (Tutorials) 6219-Professional Services6249-Contracted Maintenance 6299-Miscellaneous Contract6399-Supplies/Postage/Materials 6411-Staff Travel/Registration6499-Miscellaneous/Fees & Dues

12. Account Code Structure Cont. Sub Object - A 2 digit code for optional use to provide special accountability at the local level. xxx-xx-xxxx-00-xxx-xxx

13. Account Code Structure Cont. Organization (aka -campus or departmental code) - A mandatory 3 digit code identifying the organization, i.e., High School, Middle School, Elementary School, Superintendent’s office, etc. An organization code does not necessarily correspond with a physical location. The activity, not the location, defines the organization. Campuses are examples of organization codes and are specified for each school district in the Texas School Directory. xxx-xx-xxxx-xx-001-xxx

14. Account Code Structure Cont. Fiscal year - A mandatory single digit code that identifies the fiscal year of the transaction or the project year of inception of a grant project. xxx-xx-xxxx-xx-xxx-6xx

15. Program Intent Codes 11 – Basic Ed 21 – Gifted and Talented 22 – Career and Technology 23 – Special Ed 24 – State Compensatory Ed 25 – Bilingual 30 – Title I School Wide 34 – Pre-K 99 - Undistributed

16. Account Code Structure (Cont.) 199-21-6399-00-999-699 NOTE: MISD only uses 17 of the 20 allowed codes

17. Code Examples 199-11-6399-00-XXX-611 Instructional Supp (classroom) 199-13-6411-00-XXX-699 Staff Development Travel 199-13-6499-00-XXX-699 Staff Dev Meals and Snacks 199-21-6249-00-XXX-699 IA Contract Maint/Repairs 199-21-6399-00-XXX-699 Instructional Admin Supplies 199-21-6411-00-XXX-699 Instructional Admin Travel 199-31-6339-00-XXX-699 Testing and Assessment

18. Zero Base Budgeting Board’s theory that major purchases should be planned. Once an appropriation is set aside for major purchases (inventoried items and capital outlay), it should be used for that purchase or rolled into fund balance. For example, inventoried items (6398) must be itemized and approved by the board. Once approved, you may not move this money back into supplies (6399).

19. Inventoried Items < $5,000 6398 Inventoried Items  Computers  Printers  Projectors NOT Inventoried  Furniture  Staplers  Repairs NO SET DOLLAR VALUE! Rule of Thumb – has “value” and can walk away!

20. Inventoried Items < $5,000 6398 Replacing Broken Items:  Submit to me a Budget Transfer Request for the amount of the new item,  With the above, submit ORIGINAL Fixed Asset Reporting Form with completed disposal information to me.  After the transfer has been posted, Submit P.O. using 6398 object code

22. Budget Transfers Any transfers that need to go to the board, (transfer btwn functions) must submitted as a hard copy paper form and sent to Paula O’Neil. (see previous slide) A copy of Budget Transfer Form can be obtained on the MISD website: Staff/Financial Services/Accounting/ Forms/Budget Transfer Online Budget Transfers – as long as the function code you are transferring from is the same as the function code you are transferring to, you can post it online. FYI, you cannot use this method for any Federal or locally restricted account. (i.e. 6398, 6412)

23. Budget Transfers Do’s and Don’ts Most payroll funds are off limits, unless they originated from discretionary funds. (Examples: Extra Duty Pay, Staff Development Substitutes) Emergency transfers to 6398 require prior approval from David Garcia (local funds only). You cannot use the online method to transfer into our out of 6398.

24. Budget Transfers Do’s and Don’ts Cont. Fund 199 is budgeted by function! Changes between functions REQUIRE board approval. Must be received by Paula O’Neil 1 week prior to board meeting. (local funds only) These Transfers must be approved by the board before they will be posted. Also, any requisitions that require a budget transfer cannot be completed until after the transfer is posted.

25. Budget Transfers Do’s and Don’ts Cont. You CANNOT transfer your appropriations between funds (ex: 211 to 199). Code your transactions where they belong NOT where you have money. PLEASE realize that TEA expects us to be transparent, and they must be able to look at the account code and know how that money was used!

26. Budget Transfers Do’s and Don’ts Cont. SPECIAL REVENUE FUNDS (Grants): Usually budgeted by object code (61xx, 62xx, etc). No online budget transfers. Require approval from budget coordinators (e.g. – Teresa Moore, Nancy Isaacs). Usually subject to 25% rule.

27. Education Department General Administrative Regulations (EDGAR) NOTE: Federal Grant Guidelines – fall under U.S. Department of Education, not TEA! http://www.ed.gov/policy/fund/reg/edgarReg/edgar.html

28. Q&A Can you transfer from: 211-11-6399-00-888-611 To: 199-11-6399-00-888-611 No – there is no transfer between funds

29. Q&A The only administrative account where I have adequate funds is in my 199-23-6411, can I use that account to purchase office supplies? No, you will need to transfer funds from 199-23-6411 into 199-23-6399. This does no require board approval. Remember we are telling TEA how that money was used by our account code.

30. Q&A If the only account I have funds available is 199-11-6399, can I use that account to pay for someone to come in and do a workshop for my staff? No, you will need to transfer funds from 199-11-6399 into 199-13-6219. This definitely will require board approval. Again, remember we are telling TEA how that money was used by our account code.

31. Q&A One of my teachers wants to purchase some supplies for her classroom. She made that purchase from Walmart. Can she be reimbursed? No. Walmart is not an approved vendor for our District. We can only reimburse for purchases made to an approved vendor. All reimbursements require my prior approval. If that approval is not obtained before the purchase, then the purchaser assumes the risk of not being reimbursed.

32. Activity Funds Except for faculty funds, these funds are raised by student efforts and must be spent on students. Office supplies are acceptable. Staff Development expenses are not acceptable.

33. Activity Funds (cont.) Inventoried Items  District tracks on inventory system  Cannot be paid for with an activity check  Should pay as a 6398 object code

34. Activity Funds (cont.) How to pay for contracted services and inventoried items with activity funds:  Submit a request for payment from activity funds. The vendor will be MISD – Local Maintenance.  We will deposit the funds in your 199- xx-62XX or 6398 account

35. Activity Funds (cont.) Student Incentives: No gift cards/No cash tangible goods/$75 max Faculty Fund: Max $50 per life event Max $10 employee incentives

36. Activity Funds (cont.) Reimbursements Basically the same as for budget Requires prior approval I will approve reimbursement to non approved vendors, only for club accounts.

38. Understanding your ITCCS Screens in Finance Using your FMDxxx and password, sign on to finance. To view your accounts, you will go to screen WFN5915.

39. Business Office “Lingo”! Appropriation – budgeted amount of money set aside by formal action for a general activity or use This should be a negative number. Encumbrance – restricts an appropriation for specific future expenditure Expenditure – expense/amount “spent” (does not have to be a cash transaction) Balance – appropriation less encumbrances and expenditures (If you have a negative balance, that is how much you have left to spend) (If you have a positive balance, you have overspent for that account)

40. Viewing Account Balances WFN5915 amount budgeted - $34,241.85 amount spent - $9,964.67 amount set aside for a future expenditure- $2,171.60 balance - $22,205.58 (a credit, aka negative, is a GOOD THING!)

41. Account Masks – WFN5915 Pull up multiple codes! For account details, click the red button!

42. CK – Check #031145 PO –Purchase Order Encumbrance #652018 GJ – General Journal Entry #000321 PA – Payment Authorization (NO P.O.) PO –Purchase Order # 652055 WR –Warehouse Requisition #097601 Account Details

43. Other Points to Ponder Staff Development Substitutes: 1) The Absence From Duty Form MUST have a valid payroll account code, (ex: 13-6112) or the campus will be charged for the substitute. 2) If that budget code is a federal funds account, you must attach approval from Teresa Moore or Nancy Isaacs. 3) If that substitute is to be paid by another department, along with the Absence From Duty, you MUST attach a Departmental Voucher (indicating that departments budget code and signed by the budget manager for that department), otherwise your budget will be charged.

44. Budget Submissions

45. What you should have… Departmental Allocations Price Lists from Tom Holly

46. Where to start? 1. Forecast high cost items first – equipment – software – contract services – staff development 2. Use historical data – 2014-2015 data. 3. Get your staff involved!

47. What you owe me! 1 budget – 100% Attachments Itemized Lists of inventoried items or fixed assets for each account code used Supporting Documentation for those inventoried items

49. Equipment –Attachment Required Account Code: 199-41-6398-00-935-799 Qty/DescriptionAmount 1 - computer $1,500 1 – printer 500 Total$2,000

51. Balance your budget! Your budget submission MUST equal your total program allocations. “wish list” should be submitted separately.

52. Don’t Panic! Most line items (except 6398 and 66XX) can be moved at your discretion through a budget transfer! Be as accurate as possible when budgeting for your equipment items. We will be asking you to live with that allocation the entire year.

53. DATES TO REMEMBER Unless otherwise specified by other departments:  ALL transfer requests are due to me by April 15 th  All PO’s are due to procurement by June 3 rd  Does not include Staff Development Reimbursements

54. DATES TO REMEMBER BUDGETS DUE To Be Determined

55. And last but not least… PLEASE check your budgets on ITTCS regularly! -Check for errors -Check for deficits Notify us as soon as you find something you do not agree with or do not understand!

56. Questions?