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TRANSCRIPT
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Finance &Budget Basics for new Principals & Headmasters
BPS Finance & Budget Team
July, 2014
Agenda
Who we are: a quick introduction
What we do: the budget development process, weighted student funding
How we do it: our key tools
BPS Financial Applications
Budget Structures & “Chart of Accounts”
All Funds Budget Report
Budget Transfer Process & Guidelines
Monthly Financial Report
Overall Procurement Process & Guidelines
Trends from FY13
Wrap Up and Q&A
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Who we are: presenters at this session
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Erika Giampietro
Deputy Chief Financial Officer
635-8306
Naveen Reddy
Director of Business Improvement
635-9555
Jordan Cupps
Finance liaison (networks B and D)
635-8302
Who we are: Finance Network LiaisonsNetworks Finance Liaisons
Network AMargarita Ruiz
Blaire [email protected]
Network BMarice Edouard-Vincent
Jordan [email protected]
Network CElie Jean-Louis
Anita [email protected]
Network DCheryl Watson-Harris
Jordan [email protected]
Network EAl Taylor
Yvonne [email protected]
Network FDrew Echelson
Yvonne [email protected]
Network GMary Skipper
David [email protected]
Network HRoger Bourgeois
David [email protected]
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What we do:
•We are your budget partners (we work with you to develop your budget to best meet your unique needs and then to spend against it successfully, in compliance, and on-time)
•We are your “one stop shop” for all Finance and Budget related questions (if we don’t know the answer, we’ll refer you to someone who does)
What is Weighted Student Funding?
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• Weighted Student Funding, or WSF, or Weighted Student Formula, is a way to distribute resources to schools
• It is based on a per pupil allocation: “the dollars follow the student”
• The per pupil allocation is differentiated by student need
• WSF is not new to school districts (the methodology is used in San Francisco, Cincinnati, Baltimore, DC, New York City, and others)
• We are entering our third year of WSF
Allocates funds based on student needs, improving equity, transparency and simplicity
Allocates funds based on student needs, improving equity, transparency and simplicity
Weighted student funding:Principles for effective school budgeting
Principle Description
Student focused Provides resources based on students, not on buildings, adults, or programs
Equity Allocate similar funding levels to students with similar characteristics, regardless of which school they attend
Transparency Easily understood by all stakeholders
Differentiation based on need
Allocate resources through a comprehensive framework that is based on student needs
Predictability School allocation process is predictable and is structured to minimize school-level disruption
School empowerment
Empowers school-based decision-making to effectively use resources
Alignment with district strategy
Supports the Acceleration Agenda, our five-year strategic plan
Weighted Student Funding is a more equitable, transparent, and empowering budget approachWeighted Student Funding is a more equitable, transparent, and empowering budget approach
What we do: the School Budget Development Process
Policy Priorities developed by School Committee and Superintendent.
Anticipated programmatic changes from
schools.
Enrollment Projections
Preliminary Budget Figures
Developed
Superintendent’s Budget Proposal
to School Committee
by 1st Wed. in February.
Development ofSuperintendent’sBudget Proposal
Summer / OCT NOVEMBER DECEMBER JAN / FEB
Enrollment figures reviewed by Schools
Budget figures reviewed and adjustedby Schools & Site Councils
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What we do: School Budget Development Process
$ In December, each school is sent a preliminary budget figure and is asked to allocate its allotted resources consistent with:
federal, state and local statutes and regulations
applicable court orders
collective bargaining agreements
School Committee policy
the goals of the Boston Public Schools
and the particular priorities of the school
$Completed budgets are typically due back the first day after the winter recess.
$Both the school administrator and school site council must “sign-off” on the school budget.
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Discretionary vs. Non-Discretionary
$ In past analyses, the BPS has estimated that 90-95% of a schools’ general fund budget could be considered constrained by mandates, policies, regulations and/or requirements. (perhaps
more so in difficult budget years)
$ Potential areas of flexibility include: Administrators, Library Aides, Instructional Supplies, Planning & Development Specialists, some clerical positions, and grant funds such as Title1. Areas of particular constraint include Special Education, and META compliance.
$ The greatest flexibilities are not granted by the district, but created at the school level by innovative scheduling, staffing and budgeting. In other words, there are many requirements which must be met but there can be some flexibility in HOW they are met.
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Financial ToolsBoston Administrative Information Systems (BAIS) - PeopleSoft
• Boston Administration Information System (BAIS) represents the various ERP systems including PeopleSoft Financials (FN), PeopleSoft Human Capital Management (HCM) and the PeopleSoft Portal (The HUB)
• All budget & procurement information is available in BAIS Financials (PS FN) and staffing and payroll information is available in BAIS Human Capital Management (PS HCM)
• The HUB is the gateway to access these applications
• Future Force is a bolt on application in PS HCM which is used to create budgets during the budgeting process
• Maximo is an enterprise wide work order system for managing work orders with Facilities and Planning & Engineering
• PeopleSoft Financial Training: Scheduled for July 26; contact Dolores Sullivan ([email protected] - 635-9456) for more information
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Budget Codes (Chartfields)
• Development and implementation of the school budget will require a familiarity with the BPS “Chart of Accounts” and PeopleSoft functionality.
• In PeopleSoft the fields that store the charts of accounts and provide BPS with the basic structure to segregate and categorize transactional and budget data are called ChartFields.
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Budget Codes (Chartfields)
$ Fields that make up the “Chart of Accounts”
$ Organize financial and budgetary information in PeopleSoft - each unique combination of values defines a budget line item.
$ Used in requisitions, stipend requests and budget transfers.
$ Enable BPS to capture and report information to the required level of detail.
BusinessUnit
BudgetRef
AccountDept Program ClassProjectFund
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Budget Codes (Chartfields)
$ Business Unit: For requisitions it is “BPS01” & Budget transfers it is “BOSTN’
$ Budget Ref = Fiscal Year, i.e. 2014.
$ Dept is the RC designation - six digits beginning with 101. For example, the Adams School is 101203.
$ Fund is either 100 for General Fund,200 for Grants, or 203 for ARRA Grants.
$ Project captures the grant number for all external funds. Title 1, for example is BPS14150 in FY2014. For general fund, leave project/grant field blank.
BusinessUnit
BudgetRef
AccountDept Program ClassProject Fund
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Budget Codes (Chartfields)
$ Account refers to the Expense Object, or the category of expenditure. For example, Stipends (51202), Regular Education Teacher (51002), or Contracted Services (52907).
$ Program delineates the programmatic area. For example, Bil/SEI Spanish (2456) or Regular Ed. Math (2120).
$ Class is not being used by the BPS, so always enter “0000”.
BusinessUnit
BudgetRef
AccountDept Program ClassProjectFund
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BPS Budget “Line Items”
$Budget “Line Items” are the most detailed breakdown of budgetary resources and are a combination of ChartFields.
$Each line item denotes a distinct pool of resources budgeted to support a particular purpose (or multiple purposes).
$Examples:Dept Descr Fund Prj/Grt Acct Descr Prog Descr BY FTE Budget
101352 Mckay Elementary School 100 51002 Regular Education Tchr 2012 Elem. Ed. Grade 2 2014 2.00 160,110$
101281 Garfield Elementary School 100 51011 Specialist Teacher 2140 Music 2014 0.60 49,794$
101549 McCormack Middle School 100 51102 Per Diem Sub 2105 School Admin - Principal's Ofc 2014 0.00 19,019$
101655 Social Justice Academy 200 BPS10150 53801 EducSup Instructional Textbook 2436 SEI Hatian 2014 0.00 12,543$
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BPS Budget Example
Example: ML King School, Instructional Supplies (General Fund)
PS Organization (Gen. Fund) Budget
Dept Fund Account Program Budget
101534 King 100 Gen. Fund 53801 Instruc. -Texts2137 Reg. Ed. Other $2,000
101534 King 100 Gen. Fund 53801 Instruc. -Texts 2120 Mathematics $1,079
101534 King 100 Gen. Fund 53802 Instruc. -Other 2456 SEI Spanish $1,000
101534 King 100 Gen. Fund 53802 Instruc. -Other 2016 Grade 6 $1,780
• There is some discretion / choice about how to code budget line items when developing budget.
• There is an opportunity to make adjustments to non-salary budget line items once set up.
• Requisitions and budget transfers must reference an accurate, valid budget line item with available $ or will not move forward.
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All Funds Budget Report
$“BPS All Funds Budget Report” designed to be the primary financial management tool for Principals and Responsibility Center managers.
$Includes budgeted dollars and budgeted Full Time Equivalent Positions (FTEs), as well as information on encumbrances and expenditures and provides an available balance for each budget line.
$Includes financial information for funds 100 and 200.
$Pre-encumbrance= outstanding Requisitions; Encumbrance = outstanding Purchase Orders.
$Handout: Job Aid shows how to run All Funds Budget Report.
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All Funds Budget Report
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Budget Transfers
• Budget Transfers are the mechanism by which available budgeted resources are moved from one budget line item to another in the financial system
$ Incremental Approach (FROM= -$ TO= +$; transfer must add to $0)
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Budget Transfers - Guidelines
$ Funding Source: Cannot transfer between funding source (Grants to General Funds)
$ Personnel Lines: Cannot transfer funds from a personnel line to a non-personnel unless:
Pilot/Innovation/HM Charter School: Budgeted salaries exceed Actual Salaries + Career Awards and Additional Payments (Teacher Leader Stipends, Education level bonus)
Position has never been filled (must be approved by HR and Finance Liaisons). If position has been filled and would like to transfer balance remaining, must receive CFO approval
$ Nonpersonnel Lines:
Can transfer to a personnel line to create position – but must ask Finance Liaison to create PC and complete transfer
Stipend line: Check with Budget Office to determine remaining balance
• Deadline: Cannot make transfers after March 25th in order to be processed in time for April 5th Spending Deadline. No exceptions will be made this coming year.
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Monthly Financial Report
• Every second week in a month during the school year an email is generated from the system to authorized personnel which contains an excel spreadsheet with multiple tabs and has as of date information for the current budget year, tabs include
An all funds budget with pre-encumbrance, encumbrance, expenditures and available budget for all budget lines
Open requisition listing
Open purchase order listing
Payroll expenditures posted to your budget
Non-expenditures posted to your budget
• If you are not receiving this via email, please contact Joyce Trabucco ([email protected])
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Overall Procurement Process
Requisition VendorBid & Contract (If needed)
ReceivingPurchase Order
Payment
School SchoolBusiness Office Business Office Business Office
Invoice
Pre-Encumbrance
Encumbrance Expense
The State Procurement Law (MGLc30B) establishes uniform procedures to be followed by local governments when contracting for supplies and services. Most goods and services purchased by BPS are procured through competitive bid processes. However, the statute does allow for some purchases to be made without public advertising.
Procurement guidelines will be covered at the BAIS FN training on July 26.
Open Req Listing
Open POListing
ExpenditureReport
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General Procurement Guidelines$ Threshold
Standard for selection: Required document: Authorization: Turnaround time*
Under 5000 Follow "Sound Business Practices": The School or department solicits three telephone, written or catalogue quotes. The record of quotes remains on file at school or department and is subject to audit.
Requisition Purchase Order 1 -2 Weeks
5000 – Under 25000
Seek written quotes from at least three vendors and award the contract to the responsible vendor offering the supply or service needed at the best price or submit a sole source letter
Requisition, detailed specifications, or a sole-source letter addressed to the City Auditor must be sent to the Business Office/Purchasing at least four weeks prior to the planned procurement.
Purchase Order and written quote contract (WQC), signed by vendor and approved by the Superintendent and the City Auditor
2 - 4 Weeks
25000 and over
Formal advertised bid or unadvertised contract
Requisition and a completed Unadvertised Contract Request Form or detailed written description of the items or services to be purchased
Purchase Order and Fully Executed Contract
8 Weeks
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• The procurement statute does allow for the purchase of certain categories of goods and services without a competitive bid process being conducted. (details in Superintendent’s Circular #FIN-7, 2011-2012)
• More information please contact Edward J. Glora, Business Manager - [email protected] - 635-9478
Trends in FY13
• Better management of funds through out the school year
• Spend much of your money early in the year to ensure that students receive maximum benefit during the whole school year
• Help us Help you
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Wrap-up: Unsolicited Advice...
$ Carefully consider the use of all your resources: money, people and time.
$ Ask experienced principals about their budget. Effective principals often find ways to use their resources creatively and strategically.
$ Spend much of your money early in the year to ensure that students receive maximum benefit during the whole school year ( reserve some until later for unexpected needs).
$ Use the All Funds Budget Report!!
$ PeopleSoft can be very useful, make it your friend … invest your time early.
$ Your Finance Liaison is your partner, they are there to help you in all financial tasks – use them, invite them to your school, make them your partner.
$ Start early on contracts! You can and should enter requisitions for contracts before the contract is approved.
$ All of your key budget documents can be found in the “budget” tab on MyBPS!
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Questions
Appendix: BPS Financial Information
$The Boston Public Schools’ Budget is organized into approximately 200 responsibility centers (RC) schools & central departments.
$Each RC must carry out its organizational and educational responsibilities within its budget.
$The BPS operates on a fiscal year beginning July 1 & ending June 30th.
$BPS is a “dependent” district: General Fund (fund 100) appropriation from City of Boston; Grants (fund 200) from state & federal sources.
$Expenditures against a budget are generally made either through the Requisition / Purchase Order process (Business Office) or through payroll related payments (HR / Payroll). 27
What we do: the BPS Budget Development Process
Policy Priorities developed by School Committee and Superintendent.
Anticipated programmatic changes from
schools.
Research by
Enrollment team
Enrollment Projections
Enrollment figures reviewed by Schools
Fixed costs
and prior commitmentscalculated by
Budget Office
Preliminary Budget Figures
Developed
Budgetfigures
reviewed and budget set by
Schools & Site Councils
Superintendent’s Budget Proposal
to School Committee
by 1st Wed. in February.
Public Hearings on
Budget Proposal
SchoolCommittee vote on Budget by 4th Wed. in March.
Budget toMayor for
adjustments, approval.
Mayor submitsBudget to
City Council for appropriation by
2nd Wed. in May.
City Council Hearings onBPS Budget
IMPLEMENTATIO
N*
Budget figures reviewed by BPS Offices & Superintendent’s Leadership Team
District Process Schools Public BPS Central Offices
Development ofSuperintendent’sBudget Proposal
Chief Financial Office, Boston Public Schools* Note: Implementation includes an October reconcilement of projected to actual enrollment and related adjustments.
SEPT / OCT NOVEMBER DECEMBER JAN / FEB MARCH APRIL MAY
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List of schools by network
Network A
Adams ElementaryBradley ElementaryEast Boston EECEdwards MiddleEliot K-8Guild ElementaryHarvard/Kent ElementaryKennedy PJ ElementaryMcKay K-8O'Donnell ElementaryOtis ElementaryQuincy ElementaryUmana K-8 AcademyWarren/Prescott K-8
Network B
Blackstone ElementaryCarter CenterDudley Street Nbhd. CharterEllis ElementaryHale ElementaryHaynes EECHigginson/Lewis K-8Hurley K-8King K-8Mason ElementaryMendell ElementaryOrchard Gardens K-8Timilty MiddleTrotter ElementaryWinthrop Elementary
Network C
Condon ElementaryClap Innovation SchoolDever ElementaryEverett ElementaryFrederick MiddleHolland ElementaryHolmes ElementaryMarshall Elementary/ UP DorchesterMcCormack MiddleMiddle School AcademyPerkins ElementaryPerry K-8Russell ElementaryTynan ElementaryUP Academy
Network D
Baldwin Pilot ELABTU School K-8Curley K-8Edison K8Gardner Pilot AcademyHennigan ElementaryHorace MannJackson/Mann K-8Kennedy JF ElementaryLyon K-8Manning ElementaryMcKinley K-8Mission Hill K-8Tobin K-8West Zone ELCWinship Elementary
Network E
Bates ElementaryBeethoven- Ohrenberger K-8Channing ElementaryChittick ElementaryConley ElementaryGreenwood E. LeadershipGrew ElementaryHaley ElementaryIrving MiddleKilmer K-8Lyndon K-8Mozart ElementaryPhilbrick ElementaryRogers MiddleRoosevelt K-8Sumner Elementary
Network F
EEC at FifieldEllison/Parks EE SchGreenwood, Sarah K-8Harbor Middle SchoolHenderson ElementaryHernandez K-8Kenny ElementaryLee AcademyLee ElementaryMather ElementaryMattahunt ElementaryMildred Avenue 3-8Murphy K-8Taylor ElementaryYoung Achievers K-8
Network GHigh Schools and Alternative Options
Network HVocational Technical network
Network Enrollment
A 6,190
B 5,669
C 6,650
D 5,993
E 6,389
F 6,358