New Mexico Public Education Department

Transcription

1 New Mexico Public Education Department Common Mistakes Often Made on Budgets David Craig, Director School Budget and Finance Analysis Bureau Christopher Ruszkowski Secretary Designate of Education STATE EQUALIZATION GUARANTEE (SEG) SEG is approximately 95% to 99% of your Operational Revenue. If there are errors in calculating your estimated SEG for the current year ( ), or not using the correct SEG for , this results in a false projected cash balance carryover for This in effect, will show that there is more cash carryover and/or SEG to budget in the projected year. Over-projecting revenues available to spend is always more damaging to building a balanced budget than under-projecting revenues. Please see Exhibits A and A.1 for Districts or Exhibits B and B.1 for Charter Schools. 2 or 16 1

2 COMMON MISTAKES MADE WITH THE OPERATIONAL REVENUE AND/OR CASH The Cash balance for the Estimated budget, should come from the 2017 audit s Governmental Funds Balance Sheet (See Guidelines handout). NOT management s cash reconciliation numbers, unaudited subsidiary ledgers or a differing figure on a year-end cash report (which shouldn t be happening either). The cash balance for the proposed budget should come from the 910B-7. (See Exhibit C for school districts and state charters, see C.1 for local charters) For school districts, the estimated Ad Valorem and the Gas and Oil for funds 11000, and are sometimes left out. (The proposed , and are automatically populated by OBMS). THE CASH BALANCE FOR ALL FUNDS SHOULD ALWAYS BE CURRENT YEAR REVENUE LESS CURRENT YEAR EXPENDITURES. NOTHING MORE, NOTHING LESS. COMMON MISTAKES WE SEE ON THE OPERATIONAL REVENUE The Ad Valorem, Impact Aid and Forest Reserve on the proposed budget, should be the same figures that are included on the B-5 SEG Revenue Estimate worksheet that will be provided by your budget analyst. If amounts uploaded on the proposed side do not match the 910B-5 (by more than a dollar) please contact your Executive Budget Analyst. Once again, you must enter what your estimated amounts will be for these revenues for the budget column. 2 or 16 2

3 Common Mistakes We See with Expenditures PLEASE DO NOT LEAVE OUT FTE S FTE s should be present for all job classes under object code 51100, with the exception of job classes 1610, 1611, 1612 Substitutes and job class Board Members. We also see line items where an FTE is included without an expenditure amount or allowable job class. More Common Mistakes Please do not submit a budget that only includes the Operational Fund Please include both estimated revenue and expenditures for all funds in your prior year audit. PLEASE DO NOT USE THE BUDGETED NUMBERS TO INCLUDE AS THE ESTIMATED ACTUAL NUMBERS. You should not copy and paste from the previous budget s proposed amounts to this year s estimated amounts. You must come as close as you can to the actual revenue position, by fund as of JUNE 30, Expenditures by fund should not be greater than revenues, by fund. VERY COMMON WITH GRANTS. 2 or 16 3

4 More Common Mistakes For the Operational Fund, DO NOT enter an amount in estimated expenditure, function 2900, object code % June Credit. You must include the 75% credit from the 910B-7 in the projected expenditures, function 2900, object code For Operational Fund, estimated expenditure Emergency Reserve should be zero unless you have obtained approval from the Secretary and an approved BAR to transfer expenditures. If you had Emergency Reserve Expenditures in the current year ( ) these amounts will be reflected in projected cash ( ). 925B-1 Estimated Average Salary Increases (Other Than Teachers) 925B-1 The total in column 1 (FTE s) MUST equal the FTE s from Worksheet IV (See Exhibits D and D.1). 925B-1, column 2 FTE s are formula driven and should be the same as column 1 FTE s. (See Exhibits D and D.1). 925B-1 Columns 3 and 4 MUST equal the totals from Worksheet IV (See Exhibits D and D.1). 2 or 16 4

5 925B- 2, 3 and 4 Estimated Average Salary Increases 925B-2 In the middle box, roman numeral I, is looking at TOTAL BASE figures and must equal Worksheet V. (See Exhibit E and E.1) 925B-2 In the bottom box, roman numeral II, is looking at TOTAL CONTRACTS and must equal Worksheet V. (See Exhibit E and E.1) 925B-3 The FTE s on this form must be the same FTE s from Worksheet V. (See F and E.1) 925B-4 The 925B-4 should be zero unless there was: a bridge salary schedule; a mid-year or one-time non-recurring lump sum salary increase; or a combination of lump sum payment with a salary schedule adjustment for the current year. There should not be any figures on the form. (See Exhibit G) WORKSHEETS IV and V These forms are intended to arrive at what an Average salary would look like in the subsequent school year. In order to get this information, you have to assume that the same people in the current school year will be returning in the subsequent school year. For example, if you have someone in the current school year who is retiring, you should still include that person in the subsequent year so we can see what the average salary would be for that specific FTE. If there is a new FTE in the subsequent year that was not in the current year, you should NOT include this FTE on Worksheets IV and V. FTE s should be 1.00 or less, but never more than When we are trying to arrive at an average salary, the FTE s should be based on the Base Salary. Additional FTE other than the base should be for extra compensation or 16 5

6 SCHOOL CALENDAR (the examples on this form have not been updated for dates) Do not forget to enter the date that the Local Board or the Governance Council approved the Calendar. (See Exhibit H) Calendar page 1, row 4, the dates listed here for the first day of school and the last day of school must be the same as entered in their respective month. (See Exhibit H, blue highlight) For home visits or parent teacher conferences up to 33 hours may be included for Kindergarten; 22 hours for 1-6 and 12 for Please include these hours as an attachment graph to your calendar. The number of non-instructional days from the individual months must be listed and tie back to page 2 of the Calendar. (See Exhibit H, pages 1 and 2) Do not include anything other than Professional Development/In-Service days on page 1. Holidays should not be included in the Non-Instructional Day counts. (See Exhibit H) Calendar Check Form INCLUDE THE NAME OF YOUR ENTITY. (See Exhibit H.1) For Requirements Met, the only time it can show Violation is if your entity does not have a particular grade. This generally only applies to charter schools. Please note any schools, programs or other areas that do not adhere to the submitted school calendar on an attachment. This generally only applies to districts and is for alternative or year-long programs. 2 or 16 6

7 Salary Schedules Please indicate on the Salary Schedules if collective bargaining has not been negotiated. There must be at least a $1.00 increment between each salary. The salary should not be reduced when moving across and down. If you are applying for Emergency Supplemental, you can only move one step with a $1.00 increase. MORE BUDGET REMINDERS Please submit all required items on the checklist electronically and by your due date. DO NOT SUBMIT THE REQUIRED FORMS AT DIFFERENT TIMES. Your budget has a due date, and when you do not meet it, you impact he ability for PED to work on other budgets. You also raise red flags with the School Budget Director about your operations. Forms that require an original signature, must arrive in the mail, no later than Monday, June 18, 2018, or sooner. PLEASE NOTE THIS FOR BOARD SIGNATURES. Please send all working forms in word or excel format, not pdf. 2 or 16 7

8 Other Reminders: Monthly and/or Quarterly Reporting Just like on Budget - PLEASE DO NOT LEAVE OUT FTE S for all job classes, revenue object code with the exception of job classes 1610, 1611, 1612 Substitutes and job class 1800 Board Members. DO NOT INCLUDE AN FTE IN OBJECT CODES AND/OR Not following these steps will cause very tedious and time consuming processes such as disapproving and re-submitting OBMS expenditures reports. This issue can cause very cumbersome steps particularly the fourth quarter and will create major issues with the 925F form at the end of the year. YOU MUST INCLUDE THE JUNE 2017 AUDITED CASH BALANCE ON THE THIRD QUARTER CASH REPORT RATHER THAN THE FOURTH QUARTER/12 MONTH JUNE 2017 CASH REPORT CASH BALANCE. QUESTIONS AND ANSWERS 2 or 16 8