03 budget preparation · 03 budget preparation. learning objectives. 3. the ability to prepare a...
TRANSCRIPT
TALKING FINANCES 2013
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03 BUDGET PREPARATION
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Learning Objectives
3
The ability to prepare a school budget ensuring full disclosure of all revenue and expenditure.
To confirm and enhance individual knowledge of current policy and best practice.
Learning OutcomesThe development and provision of a completely transparent budget.
To enable the participant to apply best practice procedures and apply relevant policies and guidelines.
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Contents
Page
Presentation slides 6
1. Introduction 22
2. Budget Preparation – Develop a Timeline 23
3. Budget Preparation Tasks 25
4. Budget Preparation Tasks – New Revenue – Departmental Funds 27
5. Budget Preparation Tasks – New Revenue – Locally Raised Funds 28
6. Budget Preparation – Expenditure 30
7. Consolidate Submissions 32
Sample Approved Submission Proforma (number 1) 34
Sample Approved Submission Proforma (number 2) 35
Sample Approved Submission Proforma (number 3) 36
8. Recording the Approved Budget on CASES21 Finance 37
9. Monitoring your Budget 39
Exercise 1 41
Exercise 2 42
Exercise 3 43
Exercise 4 44
Sample Reports - Operating Statement Detail 45
Sample Reports - Annual Sub Program Budget Variance 54
Sample Reports - Salaries Fortnightly Transaction Report 55
Sample Reports - Budget Submission Proforma 56
Sample Reports - Monthly Cash Flow Template 57
Budget Timeline 59
Exercise 1 Answers 61
Exercise 2 Answers 63
Exercise 3 Answers 67
Exercise 4 Answers 69
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Presentation Slides
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Learning outcomes • The ability to prepare a school budget ensuring full disclosure of
ALL revenue and expenditure • To confirm and enhance your knowledge of current policy and
best practice
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Introduction to budgeting
Importance of budgeting • Expenditure control • Risks minimised • Better decision making • Student outcomes not compromised • Meaningful reports
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Topics covered • Importance of budgeting • Overview and timelines • Budget preparation • Entering, monitoring and reviewing the budget
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Introduction to budgeting Overview Six Stages of Budgeting • Stage 1 Develop a timeline • Stage 2 Estimate revenue available • Stage 3 Invite submissions • Stage 4 Match submissions to resources available • Stage 5 Budget proposal to finance committee • Stage 6 Approval by school council
Reference: A Guide to Budget Management in Victorian Government Schools http://www.education.vic.gov.au/school/principals/finance/Pages/guidelines.aspx
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The budget cycle
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Budget preparation
Carry Forward / Committed Funds • Cash Reserve • Cluster/Regional funds • Grants not fully expended • Carry forward balances for Sub programs
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Budget timeline (Refer to Page 23 of your workbook)
• Any variance on this is acceptable • The main focus is the school has a plan and the approval process is
completed by December • This allows the budget to be entered on the system before the
February school council meeting
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Presentation Slides
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Budget preparation Exercise 1 (Refer to Page 41 of your workbook) If the closing balances below were the final results at your school, which programs (if any) would you approve carry forward balances in the budget and why? Closing balances for:
Before/After School Care Canteen Parent’s Club Art SMS Administration English
$3,400 $1,000
$500 $1,000 $5,000
$500 ($200)
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Financial commitments summary • Completed as part of End of Year process • Identifies the intended purpose of any accumulated funds, including
an appropriate operating reserve • Specified categories used and timelines required in some instances • Operating Reserve: - Average of 2 months recurrent expenditure - Automatically adjusted for ‘Building Works’, ‘Ground Works’ and ‘Asset Write Down’ - Minimum cash reserve is $10,000 - Reserve can be reduced by schools but not increased
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Budget preparation – new revenue continued
Locally Raised Funds • Parent payments (impact of changes to EMA) • Bank interest • Camps and excursions • Trading operations • Fundraising • Other locally raised funds
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Budget preparation – new revenue Departmental Funds • Cash Grant - SRP Budget Management Report • SRP Surplus (projected) - do not include in draft budget • SRP Deficit - should be included in draft budget • Credit to Cash • Cash to Credit • Specific Purpose Grants Note: The SRP Deficit will be deducted from Term 3 Cash Grant.
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Presentation Slides
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Budget preparation - estimating new revenue
Proposed New Revenue
Cash Grant
Government Provided Funds
Other DEECD Grants
Locally Raised Funds
Bank Interest
Subject Contributions
Fundraising Activities
Commission
Hire of School Facilities/Equipment
70001
70080
73002
74001
74101
74103
74201
9499
9499
9499
9499
9499
Total Estimated Revenue (NEW) $125,476
NEW Revenue
$89,900
$10,000
$5,000
$16,076
$2,000
$500
$2,000
$99,900
$25,576
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Budget preparation Exercise 2 (Refer to Page 42 of your workbook) Consider each of the areas noted and develop a strategy for how the information will be determined
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Budget preparation - expenditure
Co-operative Loan Repayments • Split budget into Interest component (GL 86805) and principal
(GL40001) • Remember that Budgets and Actuals for principal repayments
will NOT show on Operating Statement Refer to Finance Manual for Victorian Government Schools: http://www.education.vic.gov.au/school/principals/finance/Pages/guidelines.aspx
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Budget preparation – proposed expenditure Recurrent Expenditure Expenditure associated with the day to day running of the school Capital Expenditure Assets with a value equal to or greater than $5,000 that provide benefit to the school for more than one year Future Spending Funds reserved to be expended in future years
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Presentation Slides
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Budget preparation - submissions Invite submissions from Program areas • Provide timeline and proforma to be completed • Sample proforma available at: http://www.education.vic.gov.au/school/principals/finance/Pages/cases21.aspx
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Chart of accounts • GL Codes, Programs, Sub programs, Initiatives and GST • GL expenditure code descriptions should not be repeated as Sub
programs • Up-to-date version found on the CASES21 website: http://www.education.vic.gov.au/school/principals/finance/Pages/cases21.aspx
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Budget preparation – consolidating submissions
Consolidate submissions • Ensure that expenditure does not exceed available funds • Budget cannot show a deficit
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Budget preparation - submissions
80071
86104
86203
CRT’s
Class Materials
Reference Materials
4101 English
Margaret Evans
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Entering budgets on CASES21 finance • Entering revenue budgets • Entering expenditure budgets • There is now the facility to export and import budgets from and to
CASES21 Refer to Section 6:Budgets in the CASES21 Finance Business Process Guide: http://www.education.vic.gov.au/school/principals/finance/Pages/cases21.aspx
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Budget approval • Budget proposal presented to finance committee • Provide a copy of proposed annual budget to each member
of school council • Approval by school council before the end of the year
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Reviewing and adjusting the budget
Exercise 3 (Refer to Page 43 of your workbook) Once the budget is completed and approved by school council, should there be any further changes? Put into words your reasoning
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Reviewing and adjusting the budget • The budget should be reviewed regularly • Budget positions should be reported to school council • Variations should be investigated and explanations reported to
the finance committee and school council where appropriate • All adjustments to the budget must be approved by school
council • Appropriate action should be taken to adjust the budget and
adjust activities: - Revenue not anticipated - Expenditure not anticipated
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Presentation Slides
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Monitoring and reporting Exercise 4 (Refer to Page 44 of your workbook) What have you learnt in relation to ‘Monitoring the Budget’?
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Monitoring and reporting - key reports • Monitoring budgets at General Ledger level - Operating Statement (GL21150) • Monitoring budgets at Sub Program level - Annual Sub Program Budget Variance (KGLSUB21003) - Annual Sub Program Budget Report (GL21157) • Monitoring the SRP Budget - Salary Fortnightly Transaction Report
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Cash Flow Budget • Prepare Projected Bank Balance for the year (refer page 57 of
your workbook) and monitor regularly • Predicts the liquidity of the school • Availability of cash when required
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Sample Cash Flow Budget Monthly Cash Flow TemplateHigh YieldOfficia l AccountInvestment 1
Balance at $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Expected Revenue JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBERCash GrantOther grantsCamps & Excurs ionsSubject contributionsCanteenHire of faci l i tesBASC parent paymentsSTLRBAS refundBank Interest
Total $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Expected Expenditure JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBERCRTNon teaching loca l payrol lPhoneElectrici tyGasContract CleaningCanteenComputer/Copier leasesPhotocopyingCamps & Excurs ionsEOY activi tiesSanitationPDBASCClass materia lsInspectionsUrgent WorksAdmin / Postage etcBAS payment
Total $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Projected Balance $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
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Presentation Slides
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Annual Sub Program Budget Variance Report • Refer to page 54 in your workbook
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Operating Statement • Refer to page 45 in your workbook
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General support
• Finance website:
http://www.education.vic.gov.au/school/principals/finance/Pages/guidelines.aspx
• CASES21 Finance Business Process Guide: http://www.education.vic.gov.au/school/principals/finance/Pages/cases21.aspx
• Service Gateway: http://servicedesk.education.vic.gov.au
• Service Desk Phone: 1800 641 943
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Salary Fortnightly Transaction Report • Refer to page 55 in your workbook
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1. Introduction
School councils are required to account for all monies under their control and to prepare appropriate statements of financial transactions. A vital part of this process is the development and monitoring of the approved budget.
A budget is the calculation of potential revenue and proposed expenditure for the coming year. In the case of potential revenue, this should include the estimated revenue and funds that are available from the previous year.
Budgets help ensure that school expenditure is controlled. Successful management cannot be achieved without planning and monitoring of actual against the planned events to ensure targets are achieved.
The school should ensure that the budget planning process and administration of the budget throughout the year are fully documented.
Importance of Budgeting
The major advantage for schools in successfully managing their financial operations is to provide an optimum level of resources available to improve student outcomes. This can be linked to the School Strategic Plan where a plan for the school’s improvement in a variety of areas is endorsed.
Failure to effectively plan for future resource provision introduces a degree of risk in several key areas of school management. The extent of the risk can be directly linked to the budget preparation and monitoring tasks. For example:
1. If a school operates without an approved budget, potential risks include non-validation of the School Strategic Plan and the inability to monitor budget trends. The implications of this mean that the school council does not have the opportunity to confirm School Strategic Plan priorities, programs and projects compromising optimum student outcomes
2. Poor management of the financial operations will introduce risks relating to actual income and expenditure varying from planned income and expenditure which could result in income deficiencies and expenditure overruns. This can lead to staffing instability, financial instability, poor commitment control, program curtailments, creditor discontent and lost opportunities
Budgeting and Reporting
Communication to school council, KLA /coordinators and the school leadership team on budget and actual data is via a range of reports specifically tailored for the particular ‘audience’. For example, in CASES21 Finance, the recommended budget-related reports for the school leadership team and school council/finance committee are:
• Operating Statement Detailed/Summary (GL21150)
• Annual Sub program Budget Report (GL21157)
• Annual Sub program Budget Variance Report (KGLSUB21003)
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2. Budget Preparation – Develop a Timeline
Process
What has to be done What information is required
Step 1 Determine a timeline. Date of November and /or December school council meeting (and work backwards)
Step 2 Determine the estimated revenue for the following year.
Example Estimated Revenue
70001 Cash Grant 89,900
74001 Subject Contributions 16,076
74101 Fundraising 2,000
Estimated revenue (new) $107,976
Official a/c estimated funds
5,000
HYIA estimated funds 73,650
less Committed funds in official a/c
-5,000
Committed funds in HYIA -33,650
Estimated carry forward revenue
$40,000
Total estimated funding $147,976
Current year Balance Sheet and Operating Statement
Indicative SRP
Any other documentation that details next years funding.
! Handy Hint:
Develop the budget using the chart of accounts numbers and names. This will make it easier when entering data onto C21F.
Step 3 Ask for budget submissions from relevant staff.
Example proforma
Program Leader: Sub Program: Fred Smith 4001 Art
Exp Code Description Amount
86104 Classroom materials 3,200
86203 Reference materials 1,000
Total request $4,200
Complete a memo providing:• timeline• advise if the next years funding is expected to be higher or lower
• a proforma (example provided in this document) for staff to complete
• copy of the Annual Sub Program Variance report (KGLSUB21003)
• an indication of whether the person will receive carry forward funds in addition to their next year budget
• an indication if their budget will be reduced by the amount the person has gone over budget for the current year.
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What has to be done What information is required
Step 4 Match the requests for budgets to the available funding. If the requests do not exceed the estimated revenue complete the budget documentation.
If the request is greater than the estimated revenue call a meeting with the program leaders to determine where the adjustment/s should occur. Then complete the budget documentation.
Estimated revenue budget for the following year (refer step 2)
Step 5 Present budget document to finance committee.
Complete any required changes and submit to the school council for approval.
Completed budget document
Step 6 Final budget adopted by school council prior to end of the current year i.e. November or December
Final budget document approved by school council.
Best practice:
The budget should be completed prior to the year in which it relates. The allocations can be keyed into the C21F system in readiness for the first school council meeting in February.
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3. Budget Preparation Tasks
Prior to developing the annual budget, it is important to address a number of areas that will form an integral part of the budget document. For example:
Financial Commitment Summary/Cash Reserve Benchmark
Department policy requires schools to complete a ‘Financial Commitment Summary’ to identify the intended use of funds held that are in excess of the school’s Cash Reserve Benchmark (operating reserve).
The Cash Reserve Benchmark is calculated automatically, during the CASES21 Finance End of Year procedures, by obtaining the average of two months recurrent expenditure (from a school’s Operating Statement GL21150) adjusted for ‘Building Works (86504)’, ‘Ground Works (86505)’ and ‘Asset Write Down (89591)’ expenditure that has occurred during the school year. The minimum cash reserve will be set at $10,000 unless the bank balances are less than $10,000 in which case the cash reserve will be set to equal the bank balance. The system calculated reserve can be reduced but not increased by the school user.
It is important for schools to link all available school funds with educational opportunities that will benefit students, while at the same time retaining a safe level of cash to meet financial obligations as they fall due. The Financial Commitment Summary is therefore a reflection of the school’s short and long term plans, budget and cash flow projections.
All schools are required to complete the Financial Commitment Summary annually and to submit their commitments information as part of the CASES21 Finance End of Year procedures.
The annual Financial Commitment Summary must be endorsed by school council.
More information on financial commitments and school cash benchmark reserves can be found on the Financial Management website.
Cluster/Regional Funds
Should I include cluster/regional funds in the budget?
Yes. While schools hold these funds on behalf of clusters or the region, the funds are part of the school’s bank account and therefore must be noted as “committed funds” in the budget preparation document.
Grants not fully expended
Should I include unspent grant funds in the budget?
Yes. Unspent grant funds are part of the cash held in bank accounts at the end of the year and become a commitment in the budget preparation document.
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Carry forward balances in Sub programs.
Should I include unspent balances in Sub programs in the budget?
Each school should have their own policy relating to unspent balances for Sub programs which do not have a specific accountability requirement. Funds to be carried forward for sub programs should form part of a school’s annual budget.
Schools are discouraged from carrying forward funds for curriculum related sub programs.
Cash held in Bank Accounts
How do I treat cash held in the Official, HYIA and other bank accounts?
School council must be completely informed of all bank account balances and any funds to be held in reserve must be included as part of the master budget document.
Exercise 1: If the closing balances below was the final result at your school, which programs (if any) would you provide carry forward balances and why? Refer to page 41 in your workbook.
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4. Budget Preparation Tasks – New Revenue – Departmental Funds
School Cash Grant
What figure do I use for next year’s Cash Grant?
If your Indicative SRP has the most up to date estimated enrolment figures, then the figure in the SRP should be used.
If the estimated enrolments are substantially higher or lower (based on more up to date information) then the school should access the SRP website and use the planning tool to determine a more realistic figure.
SRP Deficit
If the school has an SRP Deficit in the current year, do I include this in the next year’s budget?
Yes. An SRP deficit incurred in the previous year will be deducted from the school’s cash grant in Term 3. If the amount exceeds the amount of the school’s Term 3 cash grant, the balance will be deducted from the term 4 cash grant.
Credit to Cash Transfers from the SRP
Should I include proposed Credit to Cash transfers from the SRP?
Yes. If the school has potential to complete a CCT then it should be included in the budget as additional revenue.
Cash to Credit Transfers to the SRP
Should I include cash to credit transfers in the budget? (For example, an employee who is paid via eduPay, but funded from locally raised funds)
Yes. A cash to credit transfer is estimated expenditure to the school and therefore should be included.
Specific Purpose Grants
If I know that the school will be receiving a specific grant in the following year, should I include this in the budget?
Yes, if you are 100% sure. The grant will become anticipated revenue and anticipated expenditure in the school’s budget.
It is recommended that the school does not include a grant that they “hope” to receive.
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5. Budget Preparation Tasks – New Revenue – Locally Raised Funds
Student materials, service charges and parent payments
What figure should I use for parent payments?
The budget should be prepared based on the school’s historical collection rate not the total amount invoiced to all parents.
Bank Interest
What figure should I use for bank interest?
Estimation of the anticipated revenue from bank interest will vary depending on the balance in bank accounts at the start of the year and the school’s anticipated cashflow.
It is not always advisable to use the previous year’s collection amount as the school may have received large grants that boosted their revenue, and would not apply in the budget year. Recommendation is to be conservative and if additional revenue is received through the year, the school has the capacity to spend this in other areas, if approved by school council.
Camps and Excursions
How do I treat camps and excursions?
Schools should include a budget for camps and excursions.
Schools do not aim to make a profit on camps and excursions, therefore the revenue and estimated expenditure would be the same.
Some schools put an amount aside to cover the costs of students who cannot afford to attend. The school would include this estimated expenditure in the budget and therefore the estimated revenue would be less than estimated expenditure.
Fundraising activities/Trading Operations
Should I allocate a budget for fundraising activities and trading operations?
Yes. Consideration should be given to the planning of fundraising activities/trading operations for the year. Some things to consider are:
• Does the school have a fundraising activities/trading operations policy?
• Is the profit from the fundraising activities/trading operations going to be used for a specific program or project?
• Will it be spent in the same year it is raised?
In relation to fundraising activities/trading operations the revenue budget is an estimate of the total funds that expect to be raised whilst the expenditure budget will be the estimated costs of raising the funds.
Profit gained as a result of the fundraising activities/trading operations will form part of the sub program budget that has been identified to receive the funds, for example, school equipment, grounds maintenance etc.
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Other Locally Raised Funds
Schools receive other forms of revenue throughout a school year and can be included in the revenue budget if there is a 100% certainty of collection. These can include:
• Commission – from school photographer
• Donations – sponsors for end of year activities or presentation night
• Canteen Lease – where canteen is outsourced
• Hire of School Facilities – permanent use of the school’s facilities by outside parties or groups that should be agreed upon in the previous year.
• Sponsorships – includes annual scholarships
• Advertising – through the school’s newsletter or signage around the school
• Full Fee Paying Overseas Students
Exercise 2: Address each of the areas on page 42 of your workbook and for any that relate to your school, develop a strategy for how the information will be determined.
5. Budget Preparation Tasks – New Revenue – Locally Raised Funds (continued)
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6. Budget Preparation – Expenditure
Having completed the budget preparation tasks, the actual budget preparation can begin. All programs/sub programs to receive a budget are identified. At the end of each school year, the funds held in bank accounts represent unspent money from that year. These unspent funds may relate to unspent specific purpose grants or belong to sub programs that are entitled to spend their surplus in the next year and will therefore become part of the budget preparation. If a negative figure results, this is also part of the preparation.
Recurrent Expenditure
Recurrent expenditure relates to items purchased that are associated with the day to day running of the school, are of an ongoing nature and are purchased for the current year.
• Purchasing consumables for classroom use
• Payment of utilities and other administrative costs
• Building Services e.g. contract cleaning, refuse and garbage
• CRTs, professional development
Best Practice
Always use the chart of accounts codes when developing the budget. This will make it easier to enter data onto CASES21 Finance and will make the reports more meaningful to school council.
Capital Expenditure
Capital expenditure relates to asset purchases with a value equal or greater than $5,000 that will be of benefit to the school beyond the current school year.
It is recommended that capital expenditure budgets and actual expenditure are processed against one school defined sub program within the General Purpose (930) program area rather than across many individual sub programs.
Future Spending
The school has money put aside to spend in future years, is this included in the budget?
Yes, a school’s master budget worksheet must account for all funds held by the school and anticipated revenue, which includes money set aside for future spending.
It is recommended that these funds are not entered into CASES21 Finance as expenditure budgets, but retained in the Annual Master Budget to inform school council and for future reference.
Cooperative Loan Repayments
How do I show the Co-operative loan repayments budget in CASES21 Finance?
When preparing the school’s annual budget it is important to show the principal and interest expenditure budgets on the master budget worksheet.
Because the principal is coded to GL 40001 when processing payments, a budget cannot be input against this code.
Only revenue (7xxxx codes, expenditure (8xxxx codes) and capital (262xx codes) can have budgets input against them in CASES21 Finance to reflect on the Operating Statement. Code 40001 is a Balance Sheet code and therefore will not show on the Operating Statement.
The interest component of cooperatives is recorded in CASES21 Finance using code 86805 and therefore an expenditure budget can be recorded for this portion.
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Budget Preparation – Submissions
Program coordinators should be advised that next year’s budget is being prepared and what the school council’s policies and priorities are to be for the year so that the needs of the educational programs may be assessed.
All submissions should indicate what funding is required to cover both recurrent and capital expenditure. A date should be specified for all submissions to be received by the budget coordinator. This date should allow enough time for proper resource estimates to be prepared.
Where submissions are required, some guidance should be given to coordinators by providing expenditure codes and descriptions. These should be based on the codes the coordinators use for the current year’s budget. Copies of the budget variance reports from the current year will be useful as they will provide a guide as to the type of expenditure the sub program typically utilises. The proforma in Section 7 represents one example of a budget submission template which could be used to facilitate the collection of budget submissions from all who participate in the budget process.
Proformas
Should I have a standard proforma for budget submissions?
Yes, schools can use their own proformas, but they should be in line with the chart of accounts and preferably in Excel. Refer to samples in Section 7.
Chart of Accounts
Schools are required to record all financial transactions as per the designated chart of accounts codes. There is provision in the school level chart of accounts to accurately code all funds to ensure effective monitoring and reporting for management and school council.
In CASES21 Finance, the chart of accounts comprises of General Ledger (GL) and Programs, Sub programs and Initiatives. The importance of correct coding prior to data entry is critical to the credibility, reliability and accuracy of information prepared for reporting purposes.
The latest version of the chart of accounts, with glossary, is available on the CASES21 Website located at www.education.vic.gov.au/school/principals/finance/cases21.aspx
6. Budget Preparation – Expenditure (continued)
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7. Consolidate Submissions
Consolidate expenditure submissions and make final adjustments to sub program requests in line with available revenue.
This stage brings together all funds held by the school, anticipated revenue for the budget year and proposed expenditure. It will then become clear whether there are adequate funds available to meet the requests made.
A well prepared annual budget will ensure a complete picture of school funds, displaying how much the school holds (to be carried forward), how much will be received (new revenue), how much will be spent (expenditure) and how much will be carried forward for future projects.
A key point for schools to note is that the total funds accounted for in a school’s annual expenditure budget (recurrent, capital and future projects) should equal the total amount of funds available to be distributed (carry forward funds plus new revenue).
This is to ensure that all revenue, including funds that are allocated to future budget periods, are considered and reported to school council. However, only funds that are to be received or expended in the budget year are to be entered as budgets onto CASES21 Finance. A BUDGET CANNOT SHOW A DEFICIT.
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Budget Submission 201X
Sub Program Name & Code: 4101 English
Sub Program Coordinator Name: Margaret Evans
Total Estimated Carried forward : $0
Instructions
Please ensure you use the attached general ledger expenditure codes and descriptions when preparing your budget request. The top section is to be used for consumables and the lower section is to be used for equipment >$5,000.
Proposed Recurrent Expenditure
Code Description Request Approved
80071 CRT's
86101 Office/Teacher Requisites
86104 Class Materials
86203 Reference Materials
86803 Affiliations
89302 Camps/Excursions/Activities
Total Proposed Recurrent Expenditure $0 $0
Proposed Equipment Expenditure (If applicable) Cost
Total Proposed Capital Expenditure $0 $0
Notes:
7. Consolidate Submissions (continued)
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Sample Approved Submission Proforma (number 1)
Budget Submission 201X
Sub Program Name & Code: 4101 English
Sub Program Coordinator Name: Margaret Evans
Total Estimated Carried forward : $0
Proposed Recurrent Expenditure
Code Description Request Approved
80071 CRT's $4,000 $3,600
86101 Office/Teacher Requisites
86104 Class Materials $2,500 $2,500
86203 Reference Materials $3,000 $2,400
86803 Affiliations
89302 Camps/Excursions/Activities $2,000 $2,000
Total Proposed Recurrent Expenditure $11,500 $10,500
Proposed Equipment Expenditure (If Applicable) Cost
Digital camera $1,100
DVD Player $800
Total Proposed Capital Expenditure $0 $0
Notes:
English submitted a request for $1,100 Digital Camera and $800 DVD Player (attractive assets).
These amounts were approved – but will form part of the School Assets Sub program (9351) budget.
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Sample Approved Submission Proforma (number 2)
Budget Submission 201X
Sub Program Name & Code: 7101 Before/After School Care
Sub Program Coordinator Name: John Smith
Total Estimated Carried forward : $2,000
New Revenue
71002 Before/After School Care Grant $7,560
74401 Before/After School Care $9,500
Total Estimated Revenue (NEW): $17,060
Total Estimated Funds Available: $19,060
Recurrent Expenditure
Code Description Request Approved
86102 Photocopying $0
86104 Class Materials $3,000 $2,060
86203 Reference Materials $2,500 $2,000
86302 Telephone $6,000 $5,000
86403 Leased/Hired Equipment $0
86452 Electricity $2,000 $2,000
86502 Contract Cleaning $3,000 $3,000
86802 Insurance $5,000 $5,000
89302 Camps/Excursions/Activities $0
Total Recurrent Expenditure $21,500 $19,060
Capital Expenditure (If Applicable)
26210 Furniture and Fittings >$5,000
26215 Plant & Equipment >$5,000
Total Capital Expenditure $0 $0
Notes:
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Sample Approved Submission Proforma (number 3)
Budget Submission 201X
Sub Program Name & Code: 9351 School Assets
Sub Program Coordinator Name: Jane Smith
Total Estimated Carried forward : $17,500
New Revenue
70080 Other DEECD Grants $25,600
Total Estimated Revenue (NEW): $25,600
Total Estimated Funds Available: $43,100
Recurrent Expenditure
Code Description Request Approved
Assets <$5,000 $4,000 $4,000
26203 Motor Vehicles >$5,000
26205 Computers/IT equip >$5,000
26207 Printers/Scanner >$5,000
26208 Computer Software >$5,000
26210 Furniture & Fittings >$5,000
26211 Musical Equipment >$5,000 $6,000 $6,000
26212 Office Equipment >$5,000 $5,000 $5,000
26214 Communications Equipment >$5,000
26215 Plant & Equipment >$5,000
26216 Sporting Equipment >$5,000 $5,600 $5,600
26220 Other Assets >$5,000 $5,000 $5,000
29102 Cultural Assets >$5,000
Total Asset Expenditure $25,600 $25,600
Notes:
$17,500 Carried forward from last year is committed for specific replacement of computers at a future date, not this year.
$1,900 requested by English sub program for attractive assets, was approved and is included in the School Assets budget as assets less than $5,000.
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8. Recording the approved budget on CASES21 FinanceAll schools must enter annual revenue budgets as well as annual expenditure budgets.
A feature of CASES21 Finance is the functionality to use a “Revenue Control” (9499) sub program to capture the revenue budget component for the majority of sub programs.
This saves processing time and the need to enter a revenue budget (and receipts) separately at individual sub program level.
If the revenue budget is not entered onto the C21F system, the Operating Statement will not have an annual budget and therefore become meaningless.
Best practice:
Determine before budget data entry which individual sub programs will display a revenue budget and expenditure budget on the CASES21 Finance reports. This will ensure the “Sub program Budget Variance Reports” contain the appropriate information for the particular audiences.
Data entry and report display
If a school was to receive $200,000 for the cash grant, it would show against sub program 9499 as cash grant $200,000 and on the Operating Statement annual budget $200,000. As the cash grant is received quarterly it would be expected to be entered into each quarter. See example below.
! Handy Hint:
Exception to the rule (not an exhaustive list)
Enter revenue and expenditure budgets relating to: • Before/After School care • Canteen • Uniform Shop • Regional Initiatives • Fundraising • Camps & Excursions
! Handy Hint:
Check your Operating Statement to ascertain if you have entered an annual revenue budget for each revenue source.
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! Handy Hint:
The “CASES21 Finance Business Process Guide” provides instructions and guidelines for the data entry of budgets in Section 6: Budgets.
8. Recording the approved budget on CASES21 Finance (continued)
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9. Monitoring your Budget
CASES21 Finance supports the ‘best practice’ that actual financial data entry follows a planned budgeted process.
It is imperative that the Operating Statement is reviewed regularly to ensure the planned revenue and expenditure is within budget.
The Operating Statement (GL21150) is the key report to use for monitoring budget against actual for both revenue and expenditure. Refer to ‘The Operating Statement’ a practical example and explanation located on the CASES 21 website for further information.
The Annual Sub Program Budget Report (GL21157) should be used to monitor sub programs. The report produces two sections, a Revenue Report that lists sub programs detailing the revenue budget and revenue received. This report should be blank except for those specific sub programs that require a revenue budget for example, cluster funds, uniform shop etc. The Expenditure Report section should have a budget and expenditure against each active sub program.
Monitoring revenue at sub program level will be simplified if the majority of revenue is budgeted to 9499 Revenue Control and the number of other sub programs with a revenue budget is limited to those that either have accountability requirements or require a profit and loss statement to be prepared.
The Annual Sub Program Budget Variance Report (KGLSUB21003) should be used to monitor spending against individual General Ledger budgets within the program.
The SRP Budget Management Report (Indicative, Confirmed, Revised) and the Salaries Transaction Report (SRP) should also be referenced in conjunction with the reports above to monitor the financial position of the school. www.education.vic.gov.au/school/principals/finance/cases21.aspx
Adjusting budgets during the year
During the year it may become necessary for schools to make adjustments to their annual revenue and expenditure budgets, for example, when the confirmed SRP budget is received it may be necessary to increase or reduce the annual budget accordingly as enrolments may have changed.
When a budget adjustment is required, clear documentation must be kept to record the change.
Adjustment to budgets should be made in any instances where unanticipated revenue is received or expenditure is incurred where provision for these items has not previously been made in the school’s annual budget and the amounts are of a significant or material nature. Any adjustments to the budget will need to be approved by School Council.
Exercise 4: What have you learnt in relation to ‘Monitoring the Budget’? Refer to page 44 in your workbook.
Best practice:
If amendments are made, the revised budget on CASES21 Finance should match the revised approved School Master Budget.
Cash Flow Budget:
A cash flow budget is a useful means of estimating and monitoring the cash available to the school throughout the year. A school council is required to develop and monitor a cash flow budget if investments are held by the school. Refer to the School Investment Policy and Guidelines located on the Financial Management website.
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To estimate the cash flow, the difference between the budgeted receipts and payments for each month is calculated. It is essential that the projected balance is always positive. The CASES21 Finance Cash Flow Statement (GL21151) is an excellent resource for analysing a school’s cash flow on a monthly basis. The actual figures when compared with those projected will clearly show problems in the cash flow and signal the need for caution and possible action.
The preparation of this type of budget, which complements the normal revenue and expenditure budgets, although somewhat time-consuming in preparation and maintenance (monitoring), provides the school council with a valuable tool in the financial control of the school’s operations.
Schools must plan to always have sufficient cash available to cover payments.
Cash Flow Warning Signs:
The following situations are examples of warning signs where closer examination is necessary and corrective action, if warranted, should be taken.
• Collections for the period are markedly lower than was anticipated.
• Expenditure for parts of the budget are higher than was anticipated.
• Cash resources available to the school are low (after allowing for any funds previously surplus to requirements and invested elsewhere) and large commitments have still to be met.
• Increase in cost of supplies purchased for resale to pupils but collections are low.
9. Monitoring your Budget (continued)
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Exercise 1
If the closing balances below were the final results at your school, which programs (if any) would you approve carry forward balances in the budget and why?
Closing balances for: $Carry Forward
Yes/NoReasoning
Before and After School Care
Canteen (trading operations) 1,000
Parents’ Club 500
Art 1,000
SMS Targeted Maintenance 5,000
Administration 500
English (200)
3,400
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Exercise 2
Address each of the areas below and for any that relate to your school, develop a strategy for how the information will be determined.
Budget Preparation Tasks
Task Strategy
Subject Contributions
Camps and Excursions
Trading Operations
Cash Grant
Credit/Cash and Cash/Credit Transfers
Workforce Bridging
Cluster Funds
Revenue held in Bank Accounts
Balances in Sub programs
Capital Expenditure
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Exercise 3
Once the budget is completed and approved by school council, should there be any further changes? Put into words your reasoning.
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Exercise 4
What have you learnt in relation to ‘Monitoring the Budget’?
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Sample Reports99
91:C
AS
ES
21 T
rain
ing
Sch
ool
Gen
eral
Led
ger
Ope
ratin
g St
atem
ent
- Det
ail
for t
he p
erio
d en
ding
30
Apr
il 20
XX
Cur
rent
Month
Yea
r to D
ateAn
nual
% of
Bud
get
Last
Year
GL C
ode
Acco
unt T
itleAc
tual
Budg
etVa
rianc
eAc
tual
Budg
etVa
rianc
eBu
dget
Rece
ived
Actua
l
REVE
NUE
Dep't
Gra
nts
7000
1Ca
sh G
rant
215,6
3021
5,630
-43
1,260
431,2
60-
862,5
2050
124,5
0070
002
Ed'n
Maint
enan
ce A
llowa
nce
--
--
6,500
-6,50
06,5
000
420
7008
0Ot
her D
ep't G
rants
-11
,348
-11,3
482,0
0038
,809
-36,8
0938
,809
52,0
00
215,6
3022
6,978
-11,3
4843
3,260
476,5
69-4
3,309
907,8
2948
126,9
20
Com
mon
wealt
h Go
vern
men
t Gra
nts
7100
2Be
fore/A
fter S
choo
l Car
e Gra
nt-
--
-7,5
60-7
,560
7,560
0-
00
00
7,560
-7,56
07,5
600
-0
Stat
e Gov
ernm
ent G
rant
s
00
00
00
0-
-0
Othe
r73
001
Reim
burse
ments
--
--
--
--
162
7300
2Int
eres
t Rec
eived
1,498
-1,4
983,8
085,0
00-1
,192
5,000
7671
9
1,498
01,4
983,8
085,0
00-1
,192
5,000
7688
1
Loca
lly R
aised
Fun
ds74
001
Subje
ct Co
ntribu
tions
--
-64
,340
18,34
445
,996
18,34
435
113
,652
7410
1Fu
ndra
ising
Acti
vities
--
--
6,000
-6,00
06,0
000
-74
102
Dona
tions
--
--
--
--
-74
103
Comm
ission
--
--
1,500
-1,50
01,5
000
-74
201
Hire
Sch
ool F
acilit
ies/E
quip
100
-10
030
05,9
00-5
,600
5,900
531
874
202
Cante
en Le
ase
--
--
1,100
-1,10
01,1
000
-74
301
Camp
s/Exc
ursio
ns/A
ctivit
ies79
5-
795
11,69
39,5
002,1
939,5
0012
311
,565
22 N
ovem
ber 2
012
15:
511
[GL2
1150
]
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Sample Reports
9991
:CAS
ES21
Tra
inin
g Sc
hool
Gen
eral
Led
ger
Ope
ratin
g St
atem
ent
- Det
ail
for t
he p
erio
d en
ding
30
April
20X
X
Cur
rent
Month
Yea
r to D
ateAn
nual
% of
Bud
get
Last
Year
GL C
ode
Acco
unt T
itleAc
tual
Budg
etVa
rianc
eAc
tual
Budg
etVa
rianc
eBu
dget
Rece
ived
Actua
l
7440
2Tr
ading
Ope
ratio
ns2,6
06-
2,606
9,831
-9,8
31-
-2,6
8174
580
Othe
r Loc
ally R
aised
Fun
ds26
3-
263
263
-26
3-
-75
3,764
03,7
6486
,426
42,34
444
,082
42,34
420
428
,291
Tota
l Ope
ratin
g Re
venu
e22
0,892
226,9
78-6
,086
523,4
9553
1,473
-7,97
896
2,733
5415
6,091
22 N
ovem
ber 2
012
15:
512
[GL2
1150
]
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9991
:CA
SE
S21
Tra
inin
g S
choo
lG
ener
al L
edge
r
Ope
ratin
g St
atem
ent
- Det
ail
for t
he p
erio
d en
ding
30
Apr
il 20XX
Cur
rent
Month
Yea
r to D
ateAn
nual
% of
Bud
get
Last
Year
GL C
ode
Acco
unt T
itleAc
tual
Budg
etVa
rianc
eAc
tual
Budg
etVa
rianc
eBu
dget
Expe
nded
Actua
l
EXPE
NDIT
URE Sa
laries
and
Allo
wanc
es80
052
Othe
r Non
Tea
ching
Staf
f1,5
28-
1,528
10,23
98,0
002,2
398,0
0012
810
,582
8007
1Ca
sual
Relie
f Tea
ching
Staf
f-
--
4,115
17,00
0-1
2,885
17,00
024
17,73
080
080
Supe
rann
uatio
n55
8-
558
1,083
1,800
-717
1,800
602,5
48
2,086
02,0
8615
,437
26,80
0-1
1,363
26,80
058
30,86
0
Bank
Cha
rges
8280
1Ba
nk C
harg
es-
--
--
--
-15
00
00
00
0-
15
Cons
umab
les86
101
Offic
e/Tea
cher
Req
uisite
s18
,295
-18
,295
19,26
733
,000
-13,7
3333
,000
5812
286
102
Photo
copy
ing2,2
2741
71,8
119,2
2712
,667
-3,43
916
,000
58-
8610
3Pr
inting
2,036
-2,0
362,0
366,3
45-4
,309
6,345
32-
8610
4Cl
ass M
ateria
ls8,3
95-
8,395
11,39
531
,260
-19,8
6531
,260
3639
286
105
Comp
uter S
oftwa
re <
$500
0-
--
--
--
-30
1
30,95
341
730
,537
41,92
583
,272
-41,3
4686
,605
4881
5
Book
s and
Pub
licat
ions
8620
1Lib
rary
Book
s59
4-
594
1,792
10,00
0-8
,208
10,00
018
-86
202
Clas
s Sets
<$5
000
--
--
--
--
709
8620
3Re
feren
ce M
ateria
ls-
--
605
14,50
0-1
3,895
14,50
04
1,473
594
059
42,3
9624
,500
-22,1
0424
,500
102,1
82
Com
mun
icatio
n co
sts
8630
1Po
stage
45-
4545
575
0-2
9575
061
1,500
22 N
ovem
ber 2
012
15:
513
[GL2
1150
]
Sample Reports
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Sample Reports
9991
:CA
SE
S21
Tra
inin
g S
choo
lG
ener
al L
edge
r
Ope
ratin
g St
atem
ent
- Det
ail
for t
he p
erio
d en
ding
30
Apr
il 20XX
Cur
rent
Month
Yea
r to D
ateAn
nual
% of
Bud
get
Last
Year
GL C
ode
Acco
unt T
itleAc
tual
Budg
etVa
rianc
eAc
tual
Budg
etVa
rianc
eBu
dget
Expe
nded
Actua
l
8630
2Te
lepho
ne1,2
23-
1,223
3,651
21,10
0-1
7,449
21,10
017
3,329
8630
3Int
erne
t-
--
--
--
-1,8
18
1,269
01,2
694,1
0521
,850
-17,7
4521
,850
196,6
47
Equi
pmen
t/Main
tena
nce/H
ire86
401
Furn
iture
/Fitt'
gs <
$500
0-
--
--
--
-1,1
1786
402
Repa
irs/M
aint-F
urnit
ure/E
quip
10,11
3-
10,11
310
,113
18,50
0-8
,387
18,50
055
575
8640
3Le
ased
/Hire
d Equ
ipmen
t-
--
-4,8
60-4
,860
4,860
0-
8640
4Co
mpute
r Equ
ipmen
t <$5
000
--
--
28,00
0-2
8,000
28,00
00
1,091
8640
7Ot
her P
lant a
nd E
quip
<$50
00-
--
-6,0
00-6
,000
6,000
0-
10,11
30
10,11
310
,113
57,36
0-4
7,247
57,36
018
2,783
Utilit
ies86
452
Elec
tricity
3,545
-3,5
458,9
2720
,500
-11,5
7320
,500
441,8
2786
453
Gas -
Main
s2,3
29-
2,329
2,329
6,500
-4,17
16,5
0036
-
5,875
05,8
7511
,256
27,00
0-1
5,744
27,00
042
1,827
Prop
erty
Ser
vices
8650
1Sa
nitati
on-
--
918
2,000
-1,08
22,0
0046
-86
502
Contr
act C
leanin
g3,0
45-
3,045
12,18
275
,500
-63,3
1875
,500
16-
8650
3Re
fuse a
nd G
arba
ge2,1
82-
2,182
2,182
2,500
-318
2,500
87-
8650
4Bu
ilding
Wor
ks20
,909
-20
,909
42,15
518
6,710
-144
,555
186,7
1023
-86
505
Grou
nd W
orks
--
-25
,209
112,3
54-8
7,145
112,3
5422
-
26,13
60
26,13
682
,645
379,0
64-2
96,41
937
9,064
220
Trav
el &
Subs
isten
ce
22 N
ovem
ber 2
012
15:
514
[GL2
1150
]
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Sample Reports99
91:C
AS
ES
21 T
rain
ing
Sch
ool
Gen
eral
Led
ger
Ope
ratin
g St
atem
ent
- Det
ail
for t
he p
erio
d en
ding
30
Apr
il 20XX
Cur
rent
Month
Yea
r to D
ateAn
nual
% of
Bud
get
Last
Year
GL C
ode
Acco
unt T
itleAc
tual
Budg
etVa
rianc
eAc
tual
Budg
etVa
rianc
eBu
dget
Expe
nded
Actua
l
00
00
00
0-
0
Moto
r Veh
icle E
xpen
ses
00
00
00
0-
0
Adm
inist
ratio
n86
801
Adve
rtising
2,263
-2,2
632,2
633,5
00-1
,237
3,500
65-
8680
2Ins
uran
ce-
--
-10
,904
-10,9
0410
,904
0-
2,263
02,2
632,2
6314
,404
-12,1
4114
,404
160
Healt
h an
d Pe
rson
al De
velo
pmen
t
00
00
00
0-
0
Prof
essio
nal D
evelo
pmen
t86
910
Confe
renc
es/C
ourse
s/Sem
inars
2,682
-2,6
822,6
825,0
00-2
,318
5,000
54-
2,682
02,6
822,6
825,0
00-2
,318
5,000
540
Ente
rtain
men
t and
Hos
pita
lity
00
00
00
0-
0
Trad
ing
and
Fund
raisi
ng89
101
Trad
ing O
pera
tions
Pay
ments
2,587
-2,5
874,3
88-
4,388
--
2,738
8910
2No
n Pro
fit Tr
ading
Ope
ratio
ns-
--
--
--
-98
8910
4Fu
ndra
ising
Exp
ense
s-
--
--
--
--
22 N
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15:
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Sample Reports
9991
:CA
SE
S21
Tra
inin
g S
choo
lG
ener
al L
edge
r
Ope
ratin
g St
atem
ent
- Det
ail
for t
he p
erio
d en
ding
30
Apr
il 20XX
Cur
rent
Month
Yea
r to D
ateAn
nual
% of
Bud
get
Last
Year
GL C
ode
Acco
unt T
itleAc
tual
Budg
etVa
rianc
eAc
tual
Budg
etVa
rianc
eBu
dget
Expe
nded
Actua
l
2,587
02,5
874,3
880
4,388
0-
2,836
Supp
ort/S
ervic
e
00
00
00
0-
0
Misc
ellan
eous
8930
2Ca
mps/E
xcur
sions
/Acti
vities
2,294
-2,2
942,8
852,5
0038
52,5
0011
510
,909
8930
9AT
O Ch
arge
s/Pay
ments
-1-
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--
--
3
2,293
02,2
932,8
842,5
0038
42,5
0011
510
,912
Tota
l Ope
ratin
g Ex
pend
iture
86,85
041
786
,433
180,0
9664
1,750
-461
,654
645,0
8328
58,87
8
Net
Ope
ratin
g Su
rplu
s/-D
efic
it13
4,042
226,5
61-9
2,519
343,3
99-1
10,27
745
3,675
317,6
5097
,213
Out
stan
ding
Ord
ers:
27,04
9
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Sample Reports99
91:C
AS
ES
21 T
rain
ing
Sch
ool
Gen
eral
Led
ger
Ope
ratin
g St
atem
ent
- Det
ail
for t
he p
erio
d en
ding
30
Apr
il 20XX
Cur
rent
Month
Yea
r to D
ateAn
nual
% of
Bud
get
Last
Year
GL C
ode
Acco
unt T
itleAc
tual
Budg
etVa
rianc
eAc
tual
Budg
etVa
rianc
eBu
dget
Expe
nded
Actua
l
CAPI
TAL
EXPE
NDIT
URE
2620
2Bo
oks a
nd Li
brar
ies-
--
--
--
-1,6
9026
205
Comp
uters/
IT eq
uipme
nt >$
5000
31,13
8-
31,13
831
,138
75,00
0-4
3,862
75,00
042
1,007
2620
7Pr
inter
s/sca
nner
s etc
>$50
00-
10,00
0-1
0,000
-40
,000
-40,0
0012
0,000
0-
2621
0Fu
rnitu
re an
d Fitti
ngs >
$500
0-
--
--
--
--
2621
1Mu
sical
Equip
ment
>$50
00-
--
--
--
--
2621
2Of
fice E
quipm
ent >
$500
0-
--
--
--
--
2621
4Co
mmun
icatio
ns E
quip
>$50
00-
--
--
--
--
2621
5Pl
ant &
Equ
ipmen
t >$5
000
--
--
--
--
-26
216
Spor
ting E
quipm
ent >
$500
0-
--
--
--
--
2622
0Ot
her A
ssets
>$5
000
--
--
--
--
-
Tota
l Cap
ital E
xpen
ditu
re31
,138
10,00
021
,138
31,13
811
5,000
-83,8
6219
5,000
162,6
98
Out
stan
ding
Ord
ers:
0
ASSE
T W
RITE
-DOW
NS89
591
Asse
t Write
-Dow
ns-
--
--
--
-As
set S
ale P
roce
eds
--
--
--
--
Tota
l Ass
et W
rite-
Down
s0
-0
0-
0-
-
PRIO
R YE
AR A
DJUS
TMEN
TS89
592
Prior
year
adj to
asse
ts-
--
--
--
--
Tota
l Prio
r Yea
r Adj
ustm
ents
00
00
00
0-
0
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9991
:CA
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S21
Tra
inin
g S
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ener
al L
edge
r
Ope
ratin
g St
atem
ent
- Det
ail
for t
he p
erio
d en
ding
30
Apr
il 20XX
Cur
rent
Month
Yea
r to D
ateAn
nual
% of
Bud
get
Last
Year
GL C
ode
Acco
unt T
itleAc
tual
Budg
etVa
rianc
eAc
tual
Budg
etVa
rianc
eBu
dget
Expe
nded
Actua
l
Rep
ort N
otes
22 N
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9991
:CA
SE
S21
Tra
inin
g S
choo
lG
ener
al L
edge
r
Ope
ratin
g St
atem
ent
- Det
ail
for t
he p
erio
d en
ding
30
Apr
il 20XX
We
certi
fy th
at th
is re
port
is a
true
and
fair
repr
esen
tatio
n of
the
scho
ol's
fina
ncia
l per
form
ance
for t
he s
peci
fied
perio
d.
Sch
ool P
rinci
pal
___
____
____
____
____
____
____
____
____
____
Dat
e _
____
____
____
____
___
Sch
ool C
ounc
il P
resi
dent
___
____
____
____
____
____
____
____
____
____
Dat
e _
____
____
____
____
___
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Sample Reports
9991:CASES21 Training School
Annual Sub Program Budget VarianceFrom Sub Program 1301 to 1301
Sub Program 1301 Info & Comm Technology
ExpenditureUncommitted % Budget
Code Account title Annual budget YTD O/S Orders Funds Expended86101 Office/Teacher Requisites 5,000.00 4,090.91 909.09 81.8286402 Repairs/Maint-Furniture/Equip 9,000.00 7,150.00 1,850.00 79.4486404 Computer Equipment <$5000 28,000.00 5,127.25 22,872.75 18.3186407 Other Plant and Equip <$5000 6,000.00 372.00 5,628.00 6.2089302 Camps/Excursions/Activities 500.00 0.00 500.00 0.00
Totals 48,500.00 16,740.16 31,759.84 34.52
Capital Budget ExpenditureUncommitted % Budget
Asset Code Account title Annual budget YTD O/S Orders Funds Expended26205 Computers/ IT equipment >$5000 75,000.00 37,212.20 37,787.80 49.62
Totals 75,000.00 37,212.20 37,787.80 49.62
28/11/2012 18:35 1 [KGLSUB21003]
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Sample Reports
Employee ID Step EFT
0123 4 1.001.00
01234 2 0.31012345 4 1.00
1.31
0123456 3 1.001.00
01234567 2 1.00012345678 2 0.000987654 1 1.00
2.00
0987653 6 0.270.27
0987652 6 1.000987651 4 0.33
1.33
0999123 5 0.6009991234 5 0.51099912345 5 0.43
1.54
0987653 6 0.000.00
0123456 3 0.000.008.45
Employee ID Step EFT
01234567 2 0.000.000.00Total Outside Budget (1 detail records) $0.00 $406.00 $406.00
Jones, Mike GRT $0.00 $406.00 $406.00EBA 2008 Bonus Payments (1 detail records) $0.00 $406.00 $406.00
Name Salary Plan Exp Current Pay Exp YTD Payroll Liability
EBA 2008 Bonus Payments
Outside Budget
Teaching Practice Supervision (1 detail records) $0.00 $337.50 $337.50Total SRP (15 detail records) $26,836.84 $476,964.30 $519,510.83
Special Payments (1 detail records) $116.43 $1,746.45 $1,990.95Teaching Practice Supervision
Smith, Ann ACT $0.00 $337.50 $337.50
Integration Teacher Aides (3 detail records) $3,278.40 $52,573.76 $57,781.19Special Payments
FitzGerald, Lian 1PP $116.43 $1,746.45 $1,990.95
Kelly, Dan ES1 $1,082.36 $16,892.92 $18,628.84Beiber, Justin ES1 $953.82 $17,239.43 $18,685.81
Integration Teacher AidesBecker, Miranda ES1 $1,242.22 $18,441.41 $20,466.54
Anderson, Roberto ES1 $579.49 $5,180.29 $5,974.95Teaching Support Staff (2 detail records) $3,255.45 $53,075.30 $58,032.56
Para Professionals (1 detail records) $860.07 $15,858.57 $17,132.32Teaching Support Staff
Peter, Mary ES2 $2,675.96 $47,895.01 $52,057.62
Graduate Teacher (3 detail records) $5,847.03 $105,689.04 $114,993.53Para Professionals
FitzGerald, Lian 1PP $860.07 $15,858.57 $17,132.32
Singh, Amrita GRT $0.00 $3,276.34 $3,276.34Campos, Antonio GRT $2,820.28 $48,252.26 $52,839.15
Accomplished Teacher (1 detail records) $3,386.82 $60,603.85 $65,882.73Graduate Teacher
Jones, Mike GRT $3,026.75 $54,160.44 $58,878.04
Accomplished TeacherSmith, Ann ACT $3,386.82 $60,603.85 $65,882.73
Green, Sally EXR $4,235.84 $78,338.63 $85,104.54Expert Teacher (2 detail records) $5,415.15 $98,912.90 $107,499.75
Principal Class (1 detail records) $4,677.49 $88,166.93 $95,860.29Expert Teacher
Brown, Tom EXR $1,179.31 $20,574.27 $22,395.21
Principal ClassWhite, Jan PR1 $4,677.49 $88,166.93 $95,860.29
SRPName Salary Plan Exp Current Pay Exp YTD Payroll Liability
Salaries Fortnightly Transaction Report - 20XX99999 - Primary SchoolPay Period: 20XX Fortnight Ending: 01 Dec 20XX
Thursday, 22 November 2012 4:59 PM Page 1 of 1
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Sample Reports
Sample Sub Program Budget Submission Proforma 20XX
Budget Submission 20XX Sub Program Name & Code:Sub Program Coordinator Name:
Total Estimated Carried forward $0
Instructions
Code Description Request Approved80071 CRT's86104 Class Materials86203 Reference Materials86302 Telephone86303 Internet86403 Leased/Hired Equipment86452 Electricity86502 Contract Cleaning86505 Ground Works86802 Insurance89202 Technical Support - General89302 Camps/Excursions/Activities
$0 $0Proposed Capital Expenditure (If Applicable)
26210 Furniture and Fittings >$500026215 Plant & Equipment >$5000
$0 $0
Notes:
8/12/2010
Please ensure you use the attached general ledger expenditure codes and descriptions when preparing your budget request. The top section is to be used for consumables and the lower section is to be used for equipment >$5,000
Proposed Recurrent Expenditure
Total Proposed Recurrent Expenditure
Total Proposed Capital Expenditure
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Cash Flow Budget - Monthly Cash Flow Template
Monthly Cash Flow TemplateHigh Yield
Official Account
Investment 1
Balance at $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Expected Revenue JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER
Cash Grant
Other grants
Camps & Excursions
Subject contributions
Canteen
Hire of facilites
BASC parent payments
STLR
BAS refund
Bank Interest
Total $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Expected Expenditure JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER
CRT
Non teaching local payroll
Phone
Electricity
Gas
Contract Cleaning
Canteen
Computer/Copier leases
Photocopying
Camps & Excursions
EOY activities
Sanitation
PD
BASC
Class materials
Inspections
Urgent Works
Admin / Postage etc
BAS payment
Total $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Projected Balance $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
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Budget Timeline
Month Action
June School council outlines budget process.
July Submission proformas prepared and issued to KLA’s, business manager (administration budget), parents club, school council subcommittee. All other programs requiring a budget e.g. SRC, asset replacement, professional development etc have proforma completed.
August Determine available possible funds for next year including amount of committed funds/reserves.
September All submissions are considered and matched with available funds. If necessary, consult with staff on amending budgets if requested expenditure exceeds available funds.
October Close purchase orders. Confirm carry forward amounts in programs. Amend budgets if necessary.
November Draft budget and circulate to management team, finance subcommittee for comment. Make necessary amendments.
December School council approves final budget for next year.
Any variance on this is acceptable. The main focus is the school has a plan and the approval process is completed by December. This allows budget to be entered on the system before the February school council meeting.
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Exercise 1 Answers
If the closing balances were the final results at your school, which programs (if any) would you approve carry forward balances in the budget and why?
Closing balances for: $Carry Forward
Yes/NoReasoning
Before and After School Care
Yes The nature of this activity justifies carry forward of any balance to the next year budget as it relates to a non-curriculum, commercial venture.
Canteen (trading operations) 1,000 Yes or No Trading operations require preparation of a Profit & Loss Statement each calendar year for revenue/expenditure relating to that year only. If the balance is not carried forward in the canteen budget, the net profit is included for the budget estimate.
Parents’ Club 500 Yes or No Depends on individual school and Parents’ Club decision to carry forward balances or to distribute to particular program/s.
Art 1,000 Yes or No Depends on school process whether KLA’s operate a recurrent budget (all expenditure is absorbed in the budget year) or not. Also, arrangements may be in place to allow KLA to carry over funds if saving for assets that may take 2+ years to purchase.
Schools Maintenance System (SMS)
Yes Targeted funds for SMS Targeted Maintenance should be carried over so that any unspent funds in the current year can be applied next year.
Administration 500 Yes/No School policy decision.
English (200) You will need to establish how the deficit occurred. The deficit can either be absorbed by the school or deducted from the budget for the following year.
3,400
5,000
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Exercise 2 Answers
Address each of the areas below and for any that relate to your school, develop a strategy for how the information will be determined.
Budget Preparation Tasks
Task Strategy
Subject Contributions Calculation based on historical collection rate. e.g. 150 students @ $60 each = $9,000. Historical collection rate is 80%. Therefore budget is $7,200.
Use code 9499
Note: The Operating Statement Annual budget will show $7,200, the YTD column will show $9,000.
Camps and Excursions There is not a carried forward profit that can be put towards additional revenue.
Options
1. Do not use 9499 Each camp/excursion to have separate sub programs and revenue and expenditure recorded against each one.
2. Use 9499 Camps and Excursion are not recorded separately as sub programs. All revenue recorded against 9499. The school uses the Operating Statement to determine if there is a profit/loss – issues with this being a consolidated view!
Trading Operations The estimated profit from trading operations should be included in the budget preparation. e.g. during a 12 month period, canteen has a total of $100,000 in revenue and $80,000 in expenditure making a net profit of $20,000. The net profit is additional revenue for the school to use and should be included in the budget estimated revenue.
Do not use code 9499 When recording actual receipts and payments, individual sub programs should be used and the revenue and expenditure included in the Profit/Loss report.
Cash Grant Option 1 Use Indicative SRP if estimated enrolments are realistic.
Option 2 Recalculate SRP using the Workforce Planner if estimated enrolments are unrealistic.
Use Code 9499
Credit/Cash and Cash/Credit Transfers Both these transfers are adjusted against the cash grant.
Credit to Cash Transfers increase the estimated cash grant budget. Cash to Credit Transfers decrease the estimated cash grant budget.
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Exercise 2 Answers (continued)
Workforce Bridging Workforce Bridging loan should be recorded as committed expenditure in the budget preparation.
Cluster Funds If the school has a balance at the end of the year, the available funding should be included in the budget preparation as committed funds. i.e money in the school bank account is revenue that cannot be used for school purposes.
Do not use code 9499
Record budget and actual receipts and payments against the sub program as this is required for acquittal.
Revenue held in Bank Accounts The money held in bank accounts at year end includes funding for carry forward balances and commitments e.g.
Official account $120,000 HYIA 200,000 Total $320,000 Less C/F balances 30,000 (to be used for sub programs)
Cluster funds 100,000
Available funds $190,000
Balances in sub programs Options
(1) All closing balances whether positive or negative be c/f. A negative c/f would be reduced from the following year budget e.g.
Maths request 10,000 Less negative c/f -1,000 Budget 9,000
(2) Carry forward only if the sub program has unpaid invoices or o/s orders that relate to the previous year e.g.
Science request 8,000 Plus unpaid invoice 2,000 Budget 10,000
(3) No carry forward, all available funding is included in the available revenue for the next year (excludes cluster funds etc).
Capital Expenditure Options
(1) Use 1 sub program to record capital expenditure against the school. In this instance an allocation would be provided and capital requests could be prioritised.
(2) Include capital expenditure against individual sub programs.
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Exercise 3 AnswersOnce the budget is completed and approved by school council, should there be any further changes? Put into words your reasoning.
During the year it may become necessary for schools to make adjustments to their
annual revenue and expenditure budgets, for example, when the confirmed SRP budget
is received it may be necessary to increase or reduce the annual budget accordingly as
enrolments may have changed.
When a budget adjustment is required, clear documentation must be kept to record the
change.
This means that not only should the revenue and expenditure budgets be updated
on CASES21 Finance, but the spread sheets detailing a school‘s annual budget
development should also be updated.
The updated annual budget, highlighting the adjustments, should be provided to school
council for approval and to ensure that the current budget position of the school
remains transparent for all key decision making bodies.
Adjustment to budgets should be made in any instances where unanticipated revenue is
received or expenditure is incurred where provision for these items has not previously
been made in the school‘s annual budget and the amounts are of a significant or
material nature.
For example:
• If additional revenue (unanticipated grant with an accountability requirement) is to be
spent in the current year the sub program revenue and expenditure budgets in both the
school‘s annual budget and CASES21 budgets will be required to be adjusted.
• If the additional revenue relates to a project in a future year the annual master
budget must be updated to reflect both the revenue and expenditure. The CASES21
Finance revenue control budget (9499) must also be updated to reflect the revenue
received in the current year. However, the expenditure budget in CASES21 would not
be updated as the funds are to be spent in a future year.
It is recommended that schools develop a method of variance reporting that explains
significant or material variations to school council on a regular basis.
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Exercise 4 Answers
What have you learnt in relation to ‘Monitoring the Budget’?
1. Use the “Operating Statement – Detailed” report to monitor the total school budget.
2. Use sub program reports to monitor individual sub programs. Do not use it to monitor the
school budget.
3. The Operating Statement should include a revenue budget.
4. Understand the flow-on effect to the Operating Statement with the use of Sub program 9499
Revenue Control.
5. Understanding the reason for the Operating Statement having a revenue budget that is less
than the expenditure budget. (Not necessarily a bad result) This could occur when
funds are held from the previous year for a major project and not funded from current
year revenue. These funds would be included in the Annual Master Budget but would
not show on the operating statement.
6. The Annual Sub Program Budget Report should only have budgeted and actual revenue
recorded against the specified school sub programs.
7. The importance of creating and monitoring a Cash Flow Budget.