Finance &Budget Basics
for new Principals & Headmasters
Type
Type Date
DateHere
Here
BPS Finance & Budget Team
Type
Here
Type Presenter
PresenterName/Contact
Name/Contact
Here
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
2
Who we are: presenters at this session
Erika Giampietro
Deputy Chief Financial Officer
egiampietro@boston.k12.ma.us
635-8306
Naveen Reddy
Director of Business Improvement
nreddy@boston.k12.ma.us
635-9555
Jordan Cupps
Finance liaison (networks B and D)
jcupps@boston.k12.ma.us
635-8302
3
Who we are: Finance Network Liaisons
Networks
Finance Liaisons
Network A
Margarita Ruiz
Blaire Horner
bhorner@boston.k12.ma.us
635-9567
Network B
Marice Edouard-Vincent
Jordan Cupps
jcupps@boston.k12.ma.us
635-8302
Network C
Elie Jean-Louis
Anita Phillip
aphillip@boston.k12.ma.us
635-9573
Network D
Cheryl Watson-Harris
Jordan Cupps
jcupps@boston.k12.ma.us
635-8302
Network E
Al Taylor
Yvonne Macrae
ymacrae@boston.k12.ma.us
635-9577
Network F
Drew Echelson
Yvonne Macrae
ymacrae@boston.k12.ma.us
635-9577
Network G
Mary Skipper
David Gordon
dgordon@boston.k12.ma.us
635-6984
Network H
Roger Bourgeois
David Gordon
dgordon@boston.k12.ma.us
635-6984
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 ontime)
• 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)
4
What is Weighted Student Funding?
• 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
5
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 approach
What we do: the School Budget Development Process
Policy Priorities
developed by
School
Committee and
Superintendent.
Enrollment
Projections
Anticipated
programmatic
changes from
schools.
Summer / OCT
Preliminary
Budget Figures
Developed
Enrollment
figures reviewed
by Schools
NOVEMBER
Development of
Superintendent’s
Budget Proposal
Superintendent’s
Budget Proposal
to School
Committee
by 1st Wed. in
February.
Budget
figures reviewed
and adjusted
by Schools & Site
Councils
DECEMBER
JAN / FEB
7
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 “signoff” on the school budget.
8
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.
9
Financial Tools
Boston 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 (dsullivan@boston.k12.ma.us - 635-9456) for
more information
10
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.
11
Budget Codes (Chartfields)
Business
Unit
Budget
Ref
Dept
Fund
Project
Account
Program
Class
$ 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.
12
Budget Codes (Chartfields)
Business
Unit
Budget
Ref
Dept
Fund
Project
Account
Program
Class
$ 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.
13
Budget Codes (Chartfields)
Business
Unit
Budget
Ref
Dept
Fund
Project
Account
Program
Class
$ 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”.
14
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
15
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. -Texts
2137 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.
16
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.
17
All Funds Budget Report
18
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)
19
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.
20
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 (jtrabucco@boston.k12.ma.us)
21
Overall Procurement Process
Invoice
Requisition
School
PreEncumbrance
Open Req
Listing
Bid & Contract (If
needed)
Business Office
Purchase
Order
Business Office
Receiving
Payment
School
Business Office
Encumbrance
Open PO
Listing
Vendor
Expense
Expenditure
Report
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.
22
General Procurement Guidelines
$ Threshold
Standard for selection:
Required document:
Authorization:
Turnaroun
d 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
•
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 - eglora@boston.k12.ma.us - 635-9478
23
Trends in FY13
Budget Transfers FY13
400
350
300
250
200
150
100
50
0
Requisitions FY13
4000
3500
3000
2500
2000
1500
1000
500
0
• 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
24
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!
25
Questions
26
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
Research
by
Enrollment
team
Policy Priorities
developed by
School
Committee and
Superintendent.
Enrollment
Projections
Preliminary
Budget Figures
Developed
Anticipated
programmatic
changes from
schools.
Enrollment
figures reviewed
by Schools
SEPT / OCT
District Process
Fixed
costs
and prior
commitments
calculated by
Budget Office
Schools
NOVEMBER
Public
Budget
figures
reviewed by
BPS Offices &
Superintendent’s
Leadership Team
Development of
Superintendent’s
Budget Proposal
City Council
Hearings on
BPS Budget
Public
Hearings on
Budget
Proposal
Superintendent’s
Budget Proposal
to School
Committee
by 1st Wed. in
February.
School
Committee vote
on Budget by
4th Wed. in
March.
Budget to
Mayor for
adjustments,
approval.
JAN / FEB
MARCH
APRIL
Mayor submits
Budget to
City Council for
appropriation by
2nd Wed.
in May.
I
M
P
L
E
M
E
N
T
A
T
I
O
N*
Budget
figures reviewed
and budget set
by Schools &
Site Councils
DECEMBER
MAY
BPS Central Offices
* Note: Implementation includes an October reconcilement of projected to actual enrollment and related adjustments.
28
Chief Financial Office, Boston Public Schools
List of schools by network
Network A
Network B
Network C
Network D
Adams Elementary
Bradley Elementary
East Boston EEC
Edwards Middle
Eliot K-8
Guild Elementary
Harvard/Kent Elementary
Kennedy PJ Elementary
McKay K-8
O'Donnell Elementary
Otis Elementary
Quincy Elementary
Umana K-8 Academy
Warren/Prescott K-8
Blackstone Elementary
Carter Center
Dudley Street Nbhd. Charter
Ellis Elementary
Hale Elementary
Haynes EEC
Higginson/Lewis K-8
Hurley K-8
King K-8
Mason Elementary
Mendell Elementary
Orchard Gardens K-8
Timilty Middle
Trotter Elementary
Winthrop Elementary
Condon Elementary
Clap Innovation School
Dever Elementary
Everett Elementary
Frederick Middle
Holland Elementary
Holmes Elementary
Marshall Elementary/
UP Dorchester
McCormack Middle
Middle School Academy
Perkins Elementary
Perry K-8
Russell Elementary
Tynan Elementary
UP Academy
Baldwin Pilot ELA
BTU School K-8
Curley K-8
Edison K8
Gardner Pilot Academy
Hennigan Elementary
Horace Mann
Jackson/Mann K-8
Kennedy JF Elementary
Lyon K-8
Manning Elementary
McKinley K-8
Mission Hill K-8
Tobin K-8
West Zone ELC
Winship Elementary
Network E
Network F
Bates Elementary
Beethoven- Ohrenberger K-8
Channing Elementary
Chittick Elementary
Conley Elementary
Greenwood E. Leadership
Grew Elementary
Haley Elementary
Irving Middle
Kilmer K-8
Lyndon K-8
Mozart Elementary
Philbrick Elementary
Rogers Middle
Roosevelt K-8
Sumner Elementary
EEC at Fifield
Ellison/Parks EE Sch
Greenwood, Sarah K-8
Harbor Middle School
Henderson Elementary
Hernandez K-8
Kenny Elementary
Lee Academy
Lee Elementary
Mather Elementary
Mattahunt Elementary
Mildred Avenue 3-8
Murphy K-8
Taylor Elementary
Young Achievers K-8
Network G
High Schools and Alternative
Options
Network H
Vocational Technical network
Network
Enrollment
A
6,190
B
5,669
C
6,650
D
5,993
E
6,389
F
6,358
29