MBA Essentials. Tips to Prepare a Better MBA Budget Submission
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2 MBA Essentials Thank yu fr applying t the Meritrius Budget Award (MBA) prgram. Yur applicatin demnstrates the imprtance yu, yur finance team, and the schl district place n presenting a high-quality budget dcument t yur cmmunity. An easy-t-understand budget increases credibility, prvides clarity and transparency n hw funds are generated and allcated, and ffers an pprtunity t cmmunicate future budget cncerns and challenges. Tips t Prepare a Better MBA Budget Submissin 1. An effective budget dcument is: Technically well-prepared. Clear and lgical in its narratin f facts and data. Mathematically accurate and free f spelling and grammatical errrs. Cnsistent in frmatting and frm thrughut the entire dcument, including writing style, fnts and fnt sizes, and frmatting. Infrmatin pulled frm ther dcuments shuld be frmatted t cnfrm t the style f the budget dcument. 2. The Cver Letter shuld identify infrmatin required by the MBA Criteria Checklist that is nt applicable t the schl district and explain why it is nt included. Fr example, sme schl districts assessed and market value f taxable prperty and tax rates may nt be relevant t their budgets. 3. Respnding t the cmments f the previus year s review team (if applicable) is mandatry. Address each cmment and, if a cmment is nt relevant, state this in the respnse. 4. Carefully mnitr runding numbers t avid significant fluctuatin f data. effectively display trending data. Include narrative t explain charts r graphs and cite the surce. 6. Number pages cnsecutively, with the Executive Summary as page 1. Any pages preceding the Executive Summary, including the Table f Cntents, are numbered i, ii, iii, etc. If criteria are in multiple places, indicate all applicable page numbers, e.g., page 5 r pages Include a Glssary f Terms in the Infrmatinal Sectin t define acrnyms and terms. Define an acrnym upn its first use in a dcument, e.g., Every Student Succeeds Act (ESSA). Include ne glssary f terms and acrnyms. 8. Ensure everything is included when yu submit yur applicatin. If the MBA applicatin dcumentatin is nt cmplete, the review prcess may be delayed. 9. Resurces: A free, half-day MBA Seminar is ffered at ASBO s Annual Meeting & Exp t prvide additinal infrmatin. Resurces are available at asbintl.rg. 5. Use charts and graphs in all sectins t enhance the quality and presentatin f the budget and t highlight financial and statistical infrmatin and 1
3 MERITORIOUS BUDGET AWARD CRITERIA CHECKLIST NAME OF SCHOOL DISTRICT STATE/PROVINCE BUDGET YEAR A. GENERAL REQUIREMENTS If sme criteria are nt applicable t the schl district r the infrmatin is nt available, please prvide an explanatin in the Cver Letter. A1. Is a Cver Letter included with the submissin? Refer t the MBA Essentials page. A2. Are the respnses t the previus year s review cmments prvided? Nte: Respnd t each cmment requiring actin; explain what was revised. A3. Des the budget dcument cver include the fllwing features? The title Budget Budget year being submitted Full name f the schl district City/Cunty State/Prvince Zip/Pstal Cde Schl district s website address Optinal: Applicants are encuraged t use students artwrk r schl district phts t enhance the cver. A4. Is a cpy f the previus year s MBA Certificate included? A5. Is the budget dcument divided int the fur majr sectins: Executive Summary, Organizatinal, Financial, and Infrmatinal? Nte: D nt add r rename any ther majr sectins; hwever, minr separatins within the majr sectins are acceptable. A6. Are the fur majr sectins easy t lcate? PDF file: At a minimum, bkmark the fur majr sectins. Hard cpy submissin: Sectins must be separated with tabs r ther easily identifiable dividers. 2
4 A7. Table f Cntents Nte: Page numbers and sectin titles in the Table f Cntents must crrespnd t the exact page in the dcument. Des the Table f Cntents precede the Executive Summary? Are the fur majr sectins listed in the Table f Cntents (Executive Summary, Organizatinal, Financial, and Infrmatinal)? B. Executive Summary If sme criteria are nt applicable t the schl district r the infrmatin is nt available, please prvide an explanatin in the Cver Letter. Dcument page number(s) B1. The Executive Summary must: Be a stand-alne, liftable cmpnent. Present a cmprehensive financial picture f the schl district in narrative, numeric, and graphic frm. Nte: Infrmatin prvided in the Executive Summary must als be included in the apprpriate budget sectin (Organizatinal, Financial and/r Infrmatinal). B1a. The Organizatinal cmpnent f the Executive Summary must: Discuss the schl district s majr gals and bjectives. Describe the budget prcess and timeline. Nte any significant changes frm the current year in the budget prcess and/r budget plicies and the underlying causes f thse changes. Explain the allcatin f human and financial resurces t achieve gals and bjectives. List the members f the schl bard. List first-level administrative persnnel. B1b. The Financial cmpnent f the Executive Summary must: Summarize revenues and expenses/expenditures fr all funds. Shw at least the fiscal year budget cmparisns fr all funds. Discuss significant trends, events, and initiatives. Explain any significant financial and demgraphic changes. Include a budget frecast fr all funds. 3
5 B1c. The Infrmatinal cmpnent f the Executive Summary must: Include student enrllment trends and frecast. Include tax base and rate trends. Include persnnel resurce changes and reasns fr changes. Explain any changes in debt. Dcument page number(s) Optinal: Prvide benchmark data cmparable t ther schl districts r state assessments: Per-pupil expenditure Student-teacher rati Average class size Optinal: Explain hw the schl district ties schl budget dllars t student achievement. C. ORGANIZATIONAL SECTION If sme criteria are nt applicable t the schl district r the infrmatin is nt available, please prvide an explanatin in the Cver Letter. C1. Prvide an explanatin f the schl district s: Legal autnmy, fiscal independence/dependence. Level f educatin prvided. Gegraphic area served, including a map. Current number f students and number f schls/campuses. C2. Describe the gvernance structure, including: An rganizatinal chart f the administrative staff by psitin and title. The schl bard structure and listing f schl bard members. C3. Prvide an verview f the rganizatin s missin and gals, including: The schl district s missin statement. The majr gals and bjectives and any additinal infrmatin regarding the future directin f the schl district. The cst f a gal r bjective if it is significant and measurable. The fiduciary and/r budgetary gals, if they are nt included in the schl district s missin statement r majr gals and bjectives. 4
6 C4. Discuss the fllwing significant budget and financial items applicable t yur district and/r state: Plicies, e.g., budget develpment, implementatin. Regulatins that gvern the budget prcess. Applicable fund types and titles. Classificatin f revenues and expenditures. Disclsure infrmatin n any minimum r maximum fund balance plicies. Dcument page number(s) C5. Describe the basis f accunting fr financial reprting, including any methd fr accunting that differs frm generally accepted accunting practices. C6. Describe the budget develpment prcess, including: The budget prcess fr all funds, including capital prjects budget. The budget timeline/calendar. The budget administratin and management prcess. C7. Describe ther sustaining lcal revenue surces, e.g., cell twers, partnerships, tuitinbased prgrams, alternative schls that generate incme, etc. 5
7 D. FINANCIAL SECTION If sme criteria are nt applicable t the schl district r the infrmatin is nt available, please prvide an explanatin in the Cver Letter. ASBO Internatinal s Meritrius Budget Award (MBA) is a gld star-level designatin fr a schl district s budget prcess. The criteria are built n best practices that set apart an exemplary budget prcess frm a traditinal budget prcess. The MBA Criteria Checklist includes the use f a pyramid apprach in cmmunicating the district financials. The pyramid apprach begins at a brad level and drills dwn int mre detail as each level f the pyramid is addressed. Level One Summary f Ttal Budget (All Funds Cmbined) Ttal Revenues by Surce Ttal Expenditures by Object Level Tw Level Three Level Fur (Optinal) Summary Data fr All Operating Funds Revenues by Surce Expenditures by Object Expenditures by Functin (Optinal) Summary Data fr Individual Funds Revenues by Surce Expenditures by Object Expenditures by Functin (Optinal) Infrmatin by Prgram, Lcatin, and/r Administrative Unit Revenues by Surce Expenditures by Object The requested infrmatin must be presented in a cnsistent and cmparable frm and frmat, based n the level f detail required by law r adpted by the gverning bdy. The budget dcument must include eight years f data: Three prir years f actual (cmparative). The current year budget and/r estimated actual. Prpsed budget year. Three years f frecasted data. T include: Revenues. Expenditures. Fund balances. Other financing surces/uses. Explanatin f majr shifts frm current year. 6
8 D1. Level One Summary Data fr Ttal Budget (All Funds Cmbined) Dcument page number(s) Describe significant revenue surces and expenditure categries. Explain the underlying assumptins and significant trends fr each majr revenue surce and majr expenditure categry. Prvide eight years f financial data: Ttal Revenues by Surce Ttal Expenditures by Object Other Financing Surces/Uses Fund Balances Explain majr shifts frm current year. Describe significant changes in fund balances. Describe plans t address negative trends if the budget frecast shws declining fund balances. D2. Level Tw Summary Data fr Operating Funds Describe significant revenue surces and expenditure categries. Explain the underlying assumptins and significant trends fr each majr revenue surce and majr expenditure categry. Prvide eight years f perating data: Operating Revenues by Surce Operating Expenditures by Object Operating Expenditures by Functin (Optinal) Operating Fund Balances Explain majr shifts frm current year. Describe any significant changes in fund balances. Describe plans t address negative trends if the budget frecast shws declining fund balances. D3. Level Three Summary Data fr Individual Funds Describe significant revenue surces and expenditure categries. Explain the underlying assumptins and significant trends fr each majr revenue surce and majr expenditure categry. Prvide eight years f summary data fr individual funds: Revenues by Surce Expenditures by Object Expenditures by Functin (Optinal) Fund Balances Explain majr shifts frm current year Describe significant changes in fund balances. Describe plans t address negative trends if the budget frecast shws declining fund balances. 7
9 D4. Optinal: Level Fur Summary by Prgram, Lcatin, and/r Administrative Unit Describe significant revenue surces and expenditure categries. Explain the underlying assumptins and significant trends fr each majr revenue surce and majr expenditure categry. Prvide eight years f summary data fr prgram, lcatin, and/r administrative unit: Revenues by Surce Expenditures by Object Fund Balances Explain majr shifts frm current year. Describe any significant changes in fund balances. Describe plans t address negative trends if the budget frecast shws declining fund balances. Dcument page number(s) D5. Describe additinal csts and savings (direct and indirect) fr capital prjects. Describe budgeted capital expenditures. Describe the lng-range capital imprvement plan, e.g., replacement schedules, funding surces, life span, etc. Outline majr capital prjects fr the budget year. Indicate the fund that is used t accunt fr capital expenditure prjects. Describe the ttal amunt f the capital imprvement plan budget. Indicate when the plan will start and when it will be cmpleted. Disclse the funding surce t address the plan and hw it will affect the current budget. D6. Explain hw the current budget will be impacted by debt bligatins. Include financial data n current debt bligatins. Describe the relatinship between current debt levels and legal debt limits. Explain the effect f existing debt levels n current and future budgets. D7. Disclse the accrued bligatin fr OPEB (ther pst-emplyment benefits), such as retiree health insurance (if applicable). 8
10 E. INFORMATIONAL SECTION If sme criteria are nt applicable t the schl district r the infrmatin is nt available, please prvide an explanatin in the Cver Letter. E1. Present the assessed value f taxable prperty. Describe hw tax rates are calculated using assessed valuatins. Prvide eight years f assessed values: A minimum f three years f past assessed values. The current year budget and/r estimated current year actual. The prpsed budget year. Three years f frecasts. Dcument page number(s) E2. Prvide prperty tax rates and cllectins fr the taxing entity. Describe hw the tax rate is used t calculate a tax bill, i.e., $100 f taxable value, r sme ther frm f rate r rati. Prvide five years f infrmatin abut prperty tax rates and cllectins: Three years actual. The current year budget and/r estimated current year actual. The prpsed budget year. E3. Prvide an analysis f the tax rate s effect n the average taxpayer fr five years: Three years actual. The current year budget and/r estimated current year actual. The prpsed budget year. E4. Include alternative tax cllectins, e.g., sales tax, sin tax, fr five years, if applicable: Three years actual. The current year budget and/r estimated current year actual. The prpsed budget year. E5. Present student enrllment histry. Describe frecasting methdlgy and techniques. Prvide student enrllment by schl r by district fr eight years: Three years f actual student enrllment histry. The current year enrllment. The prpsed budget year enrllment. Three years f enrllment frecasts. 9
11 Dcument page number(s) E6. Prvide persnnel resurce allcatins within defined emplyee grups, by full-time equivalent, i.e., teachers, administratrs, maintenance, supprt staff, etc., fr five years: Three prir years actual. The current year budget and/r estimated current year actual. The prpsed budget year. E7. Include utstanding bnd issues and bnd amrtizatin schedule(s), including a descriptin f the prjects funded by any utstanding bnd issues that are still being paid. E8. Prvide perfrmance measures fr three prir years: District-selected standardized test scres. Drp-ut rates. Percentage f free r reduced-price meals. Other perfrmance measures the schl district may use. Optinal: Parent/student satisfactin surveys. Optinal: Teacher retentin rate. E9. Glssary f Terms and Acrnyms, listed in alphabetical rder. 10
CHECKLIST
www.asbointl.org/mba PROUD SPONSOR ESSENTIALS MBA Essentials Thank you for applying to the Meritorious Budget Award (MBA) program. Your application demonstrates the importance you, your finance team, and
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