Budget Development Workshop Internal Business Services February 26, - - PowerPoint PPT Presentation

Budget Development Workshop

Internal Business Services

February 26, 2020 & February 27, 2020 & February 28, 2020

2020-21 SCCOE BUDGET

SCCOE: Equity | Diversity | Inclusion | Partnership 2

Local Control Funding Formula

There are two LCFF funding calculations certified by the California Department of Education (CDE):

• County LCFF Target Entitlement, includes cost-of-living adjustment (COLA)

estimated at 2.29% for fiscal year 2020-21

• County LCFF Transition Calculation does not include a COLA
• SCCOE is funded on the higher amount of the two funding calculations – the

County LCFF Transition Calculation, which does not receive a COLA

SCCOE: Equity | Diversity | Inclusion | Partnership 3

Local Control Funding Formula

• SCCOE is considered flat funding as our entitlement revenue is only adjusted

by minimal Average Daily Attendance (ADA) changes for our Alternative Education Program (AED)

• SCCOE is also a basic aid county office that is required to return local

property taxes in excess of the funding received under the Local Control Funding Formula to the State (Education Code section 2575 (e) and 2578

SCCOE: Equity | Diversity | Inclusion | Partnership 4

Funding Sources by Program

SCCOE REVENUE FUNDING SOURCES

47%

FUNDED BY FEES PAID BY DISTRICTS Special Education Technology (External) Walden West Teacher Credentialing

24%

STATE/ FEDERAL/ GRANT FUNDED Head Start, Early Start, Safe & Drug Free Schools, Migrant Ed, ESSA/Title I

4%

ADA FUNDED OYA Charter, Alt Ed

25%

COUNTY OPERATIONS FOR MANDATED SERVICES FLAT FUNDED

District Business Advisory Services (DBAS), Internal Business Services (IBS), Maintenance & Operations, Technology (Internal), Human Resources, Charter School Department

5

Governor’s Proposals for the 2020-21 K-12 Education

SCCOE: Equity | Diversity | Inclusion | Partnership 6

Budget Highlights

• Special Education – New Special Education Base Grant and $250 million
• ne-time funding for school districts that serve students with exceptional

needs

• Early Childhood and Preschool – Inclusive Early Education Expansion

program to modernize preschool facilities that serve children with disabilities

• Teacher Investments - $900-million in one-time funding to address educator

shortages

SCCOE: Equity | Diversity | Inclusion | Partnership 7

Budget Highlights

• Community Schools - $300 million one-time funding to establish Community

Schools grants

• School Nutrition – Ongoing $60 million to train school food service workers in

promoting healthier and nutritious meals

• Computer Science - $15 million one-time funding to support training approx.

10,000 K-12 teachers to earn a supplementary authorization on their credential to teach computer science.

• System of Support - $300 million one-time for Opportunity Grants.

SCCOE: Equity | Diversity | Inclusion | Partnership 8

2020-21 Budget Assumptions

Salary Increases Benefit Rates

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Increase in Salary Effective Date

ACE/CTA 3% July 1, 2020 PSYCHOLOGISTS 3% July 1, 2020 SEIU 3% September 1, 2020 LEADERSHIP 3% September 1, 2020

Account Object Codes Benefits Rate

STRS 3101/02 NO MAX 0.1840 PERS 3201/02 NO MAX 0.22800 OASDI 3311/12

• MAX. $137,700

0.0620 MEDICARE 3321/22 NO MAX 0.0145 HEALTH & WELFARE ^ 3401/02 PER OPEN POSITION $14,000 U.I. 3501/02 NO MAX 0.0005 W.C. * 3601/02 NO MAX 0.0103 OPEB 3701/02 3751/52 PER FTE $1,056

2020-21 Budget Assumptions

Indirect Rates

SCCOE: Equity | Diversity | Inclusion | Partnership 10

Program 2020-21 Indirect Rate (%)

All Programs except programs listed below 9.85 Child Development (Fund 120) 7.50 Child Nutrition * 5.12 Head Start 9.50 Special Education (Fund 820, 950) 9.00

Budget Development Schedule

11 SCCOE: Equity | Diversity | Inclusion | Partnership

Schedule for Smaller Programs

Funds: 800, 88x, 922, 93x

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March 13, 2020: Program Managers submit budgets to Accountant March 23, 2020: Budget Office returns budgets to Program Managers for final review April 2 – 24, 2020: Program Managers submit final budgets to Division Head for review April 24, 2020: Division Head submits final budgets to Budget Office

Schedule for Larger Programs

Funds: 100, 12x, 350, 67x, 801, 810, 820, 850, 860, 870, 890, 920, 921, 940, 950, 990

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March 23, 2020: Program Managers submit budgets to Accountant April 2, 2020: Budget Office returns budgets to Program Managers for final review April 15 – May 1, 2020: Program Managers submit final budgets to Division Head for review May 1, 2020: Division Head submits final budgets to Budget Office

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Reports Distributed

• Comparative Budget Report
• Comparison of current year working budget and prior year actuals,

working budget and adopted budget

• Preliminary budget column for FY2020-21 is the current working budget

as of February 21, 2020

• Benefit Projection Report
• Benefit projection for FY2020-21, includes the salary increases and

benefit rates for FY2020-21

• All positions and account strings reflected in Benefit Projection Report

are based on current (FY2019-20) employee records

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Revenue/ Funding Sources

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Unrestricted

• Resource Range 0000 - 2999

Restricted

• Resource Range 3000 - 9999

35 Digit Account String

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Unrestricted Revenue Sources

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General

• Resource 0000
• Example: General Fund – Fund 800 Programs

Other

• Resource Range 0001 – 0999:

Unrestricted but for a specific purpose

• Example: 0990 - Transportation

Restricted Revenue Sources

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Federal

• Resource Range 3000 – 5999
• Example: Grants

State

• Resource Range 6000 – 8999
• Example: Grants

Local

• Resource Range 9000 – 9999
• Example: Local Grants/ Contracts/ Workshops

Budget Development Process Steps

Step1: Budgeting Revenues Step 2: Budgeting Personnel Expenditures Step 3: Budgeting Non- Personnel Expenditures

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Funding Source & Budget Development Process

SCCOE: Equity | Diversity | Inclusion | Partnership 21 General Funded

• Complete Steps 2 - 3 of Budget Development Process

Grant or Contract

• Complete Steps 1 – 3 of Budget Development Process

Local Workshops

• Complete Steps 1 – 3 of Budget Development Process

22 SCCOE: Equity | Diversity | Inclusion | Partnership

Development Process

Budget Development Overview

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Project Revenue/ Available Funding Indirect Computation for Fixed Revenue Grant/Contract Review of Benefit Projection Report for staffing Budget expense categories based on plans for upcoming year, use prior year as basis Ensure: Total Revenue = Total Expenditures, unless a Fund 800 Program or budgeting from fund balance Prepare Budget Packet, include all relevant backup Submit Budget Packet to accountant, follow budget development schedule for deadlines Review Budget Packet after round 1 from Budget Office and make any final adjustments Review with Division Head and Submit Final Budget Packet to Budget Office

Budgeting for Programs Funded by General Fund

• There is no revenue to budget as Fund 800 programs are funded by the

general fund reserves

• Total expenditure budgets for object codes 4000 to 6999 must not

change; however, can be re-allocated

• Follow steps 2 – 3 of the Budget Development Process

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Budgeting New Grants or Contracts

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• Ensure you have received the Grant Award Notification from grantor prior

to budgeting a new grant during budget development or a fully executed contract for a new contract

• In case fully executed funding letters are not available during budget development,

consult IBS Director for acceptable documentation as backup

• Budget grant award/ contract amount as revenue
• Prepare budget per budget submitted with grant application/ contract
• Follow steps 1 – 3 of Budget Development Process

Budgeting for Local Workshops

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• Prepare a revenue estimate, using current year estimate as basis
• complete Revenue Estimate Form, include approved form with

budget packet to accountant

• Budget revenue estimate amount for revenue
• Follow steps 1 – 3 of the Budget Development Process

Step 1: Budgeting Revenues

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Revenue Budget & Determination of Direct/ Indirect Cost

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• Review the preliminary Comparative Budget Report
• Determine the projected revenue amounts to be budgeted for FY2020 – 21
• For programs with fixed revenue, calculate Direct and Indirect Cost, follow

steps on slide 29

• For programs without fixed revenue, calculate Indirect Cost, follow steps on

slide 30

Revenue Budget & Determination of Direct/ Indirect Cost

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(A) Direct/ Indirect Cost Calculation with Fixed Revenues: (i) Calculate Total Direct Cost: Direct Cost = Total Revenue ÷ (1 + Applicable Indirect Rate)

e.g.(1 + 9.85%)

(ii) Calculate Indirect Cost: Indirect Cost = Total Revenue – Direct Cost Or utilize Indirect Cost Calculation Worksheet to compute the Indirect Cost Or consult your accountant

Revenue Budget & Determination of Direct/ Indirect Cost

(B) Indirect Cost Calculation without Fixed Revenues: Indirect Cost = Total Direct Cost x Applicable Indirect Rate Note: Object 5100 (sub-agreements), 6000 – 6999 (capitalized expenditures) and 7000 – 7999 (transfers out) are not subject to indirect and must be excluded from the indirect calculation

SCCOE: Equity | Diversity | Inclusion | Partnership 30

Step 2: Budgeting Personnel Expenditures

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Budgeting Personnel Expenditures

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Review the Benefit Projection Report provided Validate:

• your program’s Full Time Equivalents (FTEs)
• employee name, allocation and account string
• all open positions; determine if position needs to be budgeted or

eliminated, make a notation on the report and include with budget packet to accountant

Budgeting Personnel Expenditures

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Change in Allocation of Staffing (FTE)

• will require completion of Salary Account Change Form (SACF)
• completed SACF must be included in the budget packet to accountant

Budgeting Personnel Expenditures

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Establishment of a New Position

• approved ‘Request for New or Increase of Position’ form must be

attached to budget packet to accountant for new positions established during budget development

• 2020-21 Employee Fringe Benefit Cost Form should be used to

compute benefits for new position; or consult your accountant

Budgeting Personnel Expenditures

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Elimination of an Existing Position

• approved ‘Request to Decrease or Eliminate Position’ form must be

attached to budget packet to accountant to reduce budget for an existing position

Budgeting Personnel Expenditures

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Request for Additional Funding from the General Fund to Create New Positions

• complete a Program Addition Request Form
• attach approved Program Addition Request Form to budget packet to

accountant

Step 3: Budgeting Non-Personnel Expenditures

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Budgeting Non-Personnel Expenditures

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• Review prior year actuals on the Comparative Budget Report to help

project for upcoming year, especially for utilities

• Increase/ Decrease in expenditure budget categories based on projects/

plans for upcoming year

• Back out any one-time funds that had been budgeted during FY2019-20

Budgeting Non-Personnel Expenditures

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Budgeting for Inter-Office Service Agreement (IOSA)

• IOSA is required for budgeting services for Direct Cost Transfer (Object

5710-12, 19, 20, 23, 26, 30, 42) for services exceeding $1,000

• include the fully executed IOSA with budget packet to accountant
• both parties to the agreement must budget the same amount for each

IOSA

Budgeting Non-Personnel Expenditures

Phone Bills Paid From Telecommunications Budget

• Budget based on prior year’s budget in object code 5900 and attach

support with your budget for accountant review

• Contact Steven Mitome (extension 6897) in Technology and Data Service

Division for the following:

• Addition or cancellation of phone line; closing of a site location
• Review of your program’s phone bill

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Budgeting Non-Personnel Expenditures

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Programs requesting additional funding from the General Fund for non-personnel expenditures

• must complete a Program Addition Request Form
• include the approved Program Addition Request Form with budget

packet to accountant

Budgeting Non-Personnel Expenditures

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Budgeting Indirect Costs

• Compute indirect budget based on slide 30
• Object codes 5100, 6xxx and 7xxx are not subject to indirect
• Fund 800 programs are not subject to indirect
• Reduced Indirect Rate Request
• must be requested only if a grantor/ contractor stipulates a lower rate than SCCOE’s

indirect rate for FY20-21

• approved ‘Reduced Indirect Cost Rate Request’ form must be attached to budget

packet to accountant

A Balanced Budget

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Carryovers

• Carryovers are unspent grant/contract funds that a funding agency allows to

be carried over from one fiscal year to the next

• Carryovers are not budgeted during budget development; they are budgeted

after fiscal year-end close

• to urgently budget carryover for specific grants/contracts, inform accountant. Accountant will prioritize closing
• f the resource and releasing carryover
• Carryover is only allowed to be budgeted during budget development when

budgeting for position/s (FTEs)

• An approved Carryover Request Form must be included with budget packet to

accountant

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When in Doubt Please consult your Accountant

Reference materials are available on SCCOE website

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Budget Development Resources

Budget Development Forms are available on the Intranet

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Budget Development Resources

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Image credits:

• 1. https://upload.wikimedia.org/wikipedia/commons/thumb/c/cb/Schedule_clock.svg/1024px-Schedule_clock.svg.png
• 2. https://ccmit.mit.edu/wp-content/uploads/2014/09/distraction-due-date.png
• 3. https://www.bcsdny.org/Page/335
• 4. https://res.cloudinary.com/people-matters/image/upload/w_624,h_351,c_scale,q_auto,f_auto/v1486825131/1486825129.jpg
• 5. https://www.mymoneycoach.ca/budgeting/what-is-a-budget-planning-forecasting
• 6. https://www.freepik.com/free-photos-vectors/doubt
• 7. https://cdn.pixabay.com/photo/2018/01/14/22/59/cartoon-3082809_960_720.png

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