1. BEST PRACTICES 10:15 – 11:15
April 21, 2017

2. USD BUDGET – Cash Balances
General Fund – Not Recommended. Captured as local effort when computing GSA for
Local Option Budget (LFB) – Due to underspending budget or from receiving more property tax than necessary to fund the budget. Helps reduce the succeeding year’s property tax.
Districts carry cash balances for the same reason as families and businesses: to meet unknown expenses that may occur before scheduled revenue arrives; save for long term building and equipment needs.

3. USD BUDGET – Cash Balances
Food Service – Federal guidelines provide that this fund should not exceed a three-month operating balance, unless there are special circumstances.
Contingency Reserve – No limit.
Note: The following funds receive revenue from the general and supplemental general funds: four year-old at-risk, K-12 at-risk, bilingual, vocational, special education, food service, driver’s education, professional development, and parents as teachers. If the fund has a cash balance to begin the year, then transfer from the general or supplemental general funds can be reduced and transferred to another fund as needed.

4. USD BUDGET – Capital Outlay Eligible Expenditures
Acquisition, construction, reconstruction, repair, remodeling, additions to, furnishing, maintaining and equipping school district property and equipment necessary for school district purposes, including:
acquisition of computer software;
acquisition of performance uniforms;
housing and boarding pupils enrolled in an area vocational school operated under the board of education;
architectural expenses;
acquisition of building sites;
undertaking and maintenance of asbestos control projects;
acquisition of school buses; and
acquisition of other fixed assets.
K.S.A
Capital Outlay Spending Guidelines:
Utilities

5. USD BUDGET – Capital Outlay Ineligible Expenditures
Athletic “supplies” such as balls,
bats, shoulder pads, etc.
Cleaning supplies
Contracted services –
Consultants
DVDs
Instructional charts
Insurance
Fuel
Maps
Music
Publications
Supplies for professional services
Special assessment for paving and sewer
Textbooks
Toiletries
Videos

6. USD BUDGET – Supplies vs Equipment
600 Supplies – Amounts paid for items that are consumed, are worn out, or have deteriorated through use or items that lose their identity. 700 Equipment – Expenditures for acquiring capital assets, including land, existing buildings, existing infrastructure assets, and equipment. It retains original shape and character.

7. USD BUDGET – Supplies vs Equipment
BEST PRACTICE: A school district can take the following two basic approaches to distinguish between supplies and equipment:
Adopt a predetermined list of items, classifying each entry as either a supply or an equipment item.
Adopt a set of criteria to use in making its own classification or supply and equipment items.
NCES Accounting Handbook: Distinction is important as it can affect calculations of cost of operations and cost per student. Several funding sources use per student costs as part of the funding formula. The US Dept. of Ed. uses the state ‘average cost per pupil’ for determining Title allocations for states. KS Dept. of Ed. uses budget data for various state (Maintenance of Effort, Indirect Cost Rates) and federal reports (Census and NCES), as well as publications.

8. USD BUDGET – Supplies vs Equipment
BEST PRACTICE: Review annually to ensure the list or criteria has not changed. Users tend to treat the lists as comprehensive and up-to-date, even when they may not be. Example: Several years ago, you may have classified hand-held mini-calculator as equipment when they cost over $100. Now the price has dropped to the $5 to $25 range, the classification could change to supplies.
Classification of certain items change because of changes in price or technology.

9. USD Budget vs Federal Fiscal Reports
Every Student Succeeds Act (ESSA) - - Accountability and State Plans Section Per-Pupil Expenditures: Requires State and LEA report cards to annually report the per-pupil expenditures of Federal, State, and local funds for each LEA and each school in the State.

10. ESSA Per-Pupil Expenditures (F33 Census)

12. USD BUDGET – General Review
Ending cash balance is negative for the current budget year.
C07 – Federal Funds is OK
C016, C084, C086 – Not OK
Cut / Paste – Not Recommended
Office 365 OneDrive – Not Recommended
KSDE Bug Report
Do a final review of entire budget prior to finalizing
In most cases, districts will receive requested federal aid the month after expenses are incurred.
Cut and paste will change cell references throughout the budget.
While we do strive for perfection on the budget, there is occasionally a formula error discovered along the way.

17. Bonded Indebtedness – Sources We Compare
USD Budget Open Page (should match Code 05) goes to Code 99 Publication
Annual Statistical Report (18E) Table II
CPA Annual Audit

18. Annual Statistical Report – Example #1
Due August 31 – prior year data

19. Annual Statistical Report – Example #2

20. Annual Statistical Report – Example #3
In hopes of helping districts, we will prepopulate the June 30 ending balance from prior year 18E for general obligation bonds to current 18E. Approximately 60 districts were reviewed. Of those, approximately eight were accurate – however, because of the edit comparing prior year 18E, that means the prior year 18E was incorrect.

21. House Bill 2410
Adjusted FTE Enrollment based on higher of preceding year or second preceding year; includes 4yr At Risk and All Day Kindergarten.
based on 9/20/15 or 9/20/16
Current year weightings
KIDS ENRL – minutes enrolled for all day kindergarten
HB2410 will fund full day kindergarten. This will be included in the 9/20/15 and 9/20/16 FTE enrollment. However, we are finding when looking at KIDS ENRL data, we are finding some districts are incorrectly reporting minutes enrolled for KDG full time. The misunderstanding is because funding is .5 FTE, they thought they should submit as 180 minutes rather than KSDE will always take care of any calculations on the back end, and data should be submitted as actual for that student.

22. All Day Kindergarten – PBR vs KIDS

23. School Finance
Contact: Craig Neuenswander Sara Barnes Rose Ireland