ASBO International’s Meritorious Budget Awards Program How to Develop an Award Winning Budget
Welcome & Introductions Presenters Donna Peterson, MBA Review Coordinator Bob Horwath, MBA Advisory Commitee Chair Gary Frisch, MBA Advisory Committee Vice-Chair George Lingel, MBA Reviewer Paul Kelly, Member David Means, Member Samuel Rippin, Member Lee Legutko, Retired, Member Scott Kies, Review Coordinator Ketul Thaker, ING, MBA Sponsor Shirley Broz, Brian Mee, Board Liaisons Vee Boehringer, Michelle Williams, ASBO Staff
Agenda • Review MBA Criteria • Application Process • Independent Study • Group Budget Review • Q & A Criteria • Review Process-Reviewer Expectations • Evaluation/Wrap-Up • Roundtable For Questions
Overview of MBA Criteria (Page numbers on following slides tie to the ASBO Publication “Standards of Excellence in Budget Presentation”)
General Criteria The budget document cover contains: • The title “Budget” • Fiscal year • Full name of the entity • City/County of the entity • State/Providence of the entity • Website address if available
General Criteria • Budget Document is divided into the four major MBA sections • Consecutive page numbers • Table of Contents
General Criteria • Budget document contains Graphs and Charts • Cover letter identifies any information required by criteria that is not relevant to the school entity. • Written response to previous year review team comments.
General CriteriaFinal Points • Technically well prepared • No spelling, grammar or math errors • Easy to read • Clear understandable language • Flow in logical sequence • Follow MBA criteria
Introductory SectionExecutive Summary The Executive Summary can be a stand alone document and presents the budget in narrative, numeric, and graphical form. Pages 3-14
Executive Summary Make sure to include: • All funds • Key issues • Budgeting process • Lead-in to other budget sections Pages 15-59
Introductory Section MBA Certificate Include a copy of the Meritorious Budget Award certificate if received for the prior year. Page 61
Introductory SectionSchool Board Members and Administrators Include a listing of members of the school board and first level administrative personnel. Page 62-64
Introductory SectionOther Information • Build a picture of the district using varied methods • Sustain reader interest, highlight major points • Explain budget decisions and recommendations Checklist Page14
The document should provide an explanation of the school entity which includes the following: Legal autonomy, fiscal independence/dependence Level of education provided Geographic area served Pages 65-68 Organizational Section
Organizational Section • Number of students and number of schools • Number of funds and fund types and titles Page 71
Organizational Section • Explanation of classification of revenues/expenditures • Explanation of measurement basis for budget revenues/expenditures Pages 77-79
Organizational Section Budget and Financial Policies Include significant budget and financial policies, rules, procedures, and regulations at the legal, board, and administrative levels. Pages 81-90
Organizational Section Organizational Chart Include an organizational chart which includes the administrative staff by position or title. Pages 91-97
Organizational Section Mission Statement Include a coherent statement of the mission of the school entity. Page 98-100
Organizational Section Major Goals and Objectives Include the major goals for the school entity. If the cost of a goal or objective is significant and measurable, include the cost. Pages 101-120
Organizational Section Operating and Capital Budget Process Describe the budget development process and timeline including capital. Pages 120-130
Organizational SectionBudget Administration and Management Process Describe the budget administration and management process. Pages 131-137
Financial Section The “Heart” of the Budget Document
Financial Section • All governmental funds • All proprietary funds • Level of detail required by law or adopted by the governing body Pages 139-160
Financial Section • Revenues by source • Expenditures by function and object • Comparative Pages 143-154
Financial Section A pyramid approach should be used. This is a summary of all funds, followed with the presentation of individual funds.
Financial Section Pyramid Approach Optional: The presentation may be followed by program, location, and/or administrative unit budgets.
Financial Section • Fund balances • Revenues • Expenditures • Changes in Fund balances
Financial Section • Other financing sources/uses • The current year budget or estimated current year actual • The proposed budget year
Financial Section Three prior years of actual data is preferred in the Financial Section. The information may be presented in the Informational Section in a form and format which is comparable to the current year and proposed year.
Financial Section • Budgeted capital expenditures • Major capital projects for the budget year (whether authorized in the operating budget or in a separate capital budget).
Financial Section Describe to what extent capital improvements or other major capital spending will affect the school entity’s current and future operating budgets.
Financial Section Focus on reasonably quantifiable additional costs and savings (direct and indirect) or other service impacts that result from capital spending.
Financial Section • Include financial data on current debt obligations. • Describe the relationship between current debt levels and legal debt limits.
Financial Section Explain the effects of servicing debt levels on current and future budgets.
Informational Section Present the assessed value of taxable property and the market value of taxable property for: • A minimum of three years actual • Current year budget and/or estimated current year actual • The proposed budget year Pages 174-186
Informational Section Include property tax rates and collections for: • A minimum of three years actual • The current year budget and/or estimated current year actual • The proposed budget year • Describe the tax rate relationship versus taxable value
Informational Section Include an analysis of the budget’s effect on taxpayers for: • Minimum of three years actual • Current year budget and/or estimated current year actual • Proposed budget year
Informational Section Provide five-year summary comparison of revenues and expenditures (three prior years actual, current year budget and/or estimated actual, and the proposed budget year). If the three prior years actual data is presented in the Financial Section, this presentation is not required.