Finances, Budgets and Purchasing

1. Finances, Budgets and Purchasing • With Thanks and Credit to Maryanne Dempster, Former Budgeting and Accounting Manager, School District 17 and current Auditor with Province of New Brunswick

2. Budget & Accounting As Principal, you should: • Be prepared to wisely and confidently execute the financial aspects of being part of the school administration team. • Have an understanding of the Budget breakdown and accounting processes. • Have an understanding of the difference between the “Fiscal year” and the “School Year”. • Have an understanding of what school raised funds are and how to account for them.

3. Legal Foundations • Federal Government • New Brunswick Legislature • Department of Education • District Education Council • School District

4. Legal Documents • Financial Administration Act • Education Act • Crown Construction Act • Public Purchasing Act • Collective Agreements • District Education Council Policies • Department of Education Policies

5. Basic Funding Models • Provincial Funding from the Department of Education • Budget Guidelines • Professional Funding Norms • District Expenditure Plan • School-based Budgets

6. Teacher Salaries Special Needs School Based Budgets School Support Information Technology Supplementary Educational Programs Facilities Transportation DEC/PSSC District Office Employee Benefits Total 54% 8% 3% 2% 1% 3% 11% 8% 5% 5% 100% Example of a School DistrictExpenditure Plan

7. Instructional materials, Equipment & photocopying Telephones Office Supplies Library Materials Curricular Trips Healthy Minds PSSC PLEP (Positive Learning Environment) (District specific) Instructional Resources Teacher Working Condition Fund Total School Based Budgets 36% 8% 2% 4% 5% 3% 2% 23% 13% 4% 100% Example of School Based Operating Budgets

8. Funding Formula’s for school Based Budgets • Objective: an equitable and fair distribution of funds • Various factors are considered in the funding formulas • Pupil population, number of teachers, elementary vs. secondary, field trip distances • Details and calculations may be provided in “Fiscal Facts” memo

9. Site-based School Budgets • Regular Instruction: • Classroom Supplies & Furniture • Photocopying • Instructional Materials, Equipment & Repairs • School Administration Support: • Office Supplies & Telecommunications • Library Resources

10. Site-based School Budgets • Teachers’ Working Conditions Fund • Collective Agreement negotiated item (Schedule K) • Pre-approval of purchases/uses by Superintendent • Balances at March 31st carry forward • “Healthy Minds” Nutrition Program (changing in the next year)

11. Site-based School Budgets • PLEP (Positive Learning Env’t & Tutor Suppor; may be school based or may be district based) • Co- & Extra-Curricular Trips • PSSC • Parent School Support Committee • To be expended as per guidelines outlined by District Education Council (DEC) • Instructional Resources • - Only approved resources can be purchased unless permission is obtained by the Superintendent.

12. School-to-pay • Technically, funds are “Donations” to the Crown • PROCEDURE • School makes the purchase (using the Purchase card or requisition), • District pays the invoice to the vendor (requisition) or the Bank of Montreal pays the vendor (Purchase card). • School sends in cheque to District Office to cover the purchase (including freight, excluding HST)

13. School-to-Pay • WHY? • Save the HST on purchases (i.e. Playground equipment, Hockey Team jerseys, etc.) • Same purchasing procedures and guidelines apply to these purchases • Access to Government Contracts of Supply and Standing Offers • Benefit of tendering process through Dept Supply and Services • Biggest bang for the buck! • Balances at March 31st carry forward • spend your budgets first

14. Expectations • It is expected that : • Site-based school budgets will be spent, but not overspent • Surpluses do NOT carry forward for Global Budgets • Deficits will be charged to School-to-Pay • Purchases will be made in accordance with the Public Purchasing Act • Expenditures will be made in accordance with the educational objectives of the funding • e.g. Library funds will be spent on library materials

15. Financial Reports • Summary and detail reports available on the WEB through the Principal or Secretary • Updated regularly • Information reflects processed transactions only • Processing is always weeks later than the purchase decision

16. Fiscal Facts Sample Information Source for School Administrators; May be District Specific • Fiscal Facts #1 – Budget Allocation • Fiscal Facts #2 – Telecommunications Plan • Fiscal Facts #3 – Photocopier Usage • Fiscal Facts #4 – Healthy Minds • Fiscal Facts #5 – School Reserves • Fiscal Facts #6 – Instructional Resources

17. Teacher Working Condition Fund • In accordance with the guidelines in the NBTA collective agreement. • Does not have to be spent by March 31st. • Balance is rolled over into new fiscal period. • Prior approval from the superintendent is required for purchases outside the general list of approved items.

18. Audit, Fraud and Abuse • Principles for safeguarding school and public funds • Spending Authority • Recording and Reporting • Financial Administration Act • Public Purchasing Act

19. Risk Management • Be Aware • Be Proactive • Be Accountable

20. AWARE • Roles and Responsibilities • Acts, Regs, Policies and procedures and collective agreements • Listen, look • Know issues, hot topics

21. PROACTIVE • Plan with team • Know issues, resources • Share, communicate • Implement, monitor and redesign

22. ACCOUNTABLE • Inform • Monitor • Report • Investigate • Record • Follow up

23. You should know.. • District policies and procedures • Fiscal year/school year • Zero balance at year end • Target dates for expenditures • Spending authority • Purchasing regulations

24. Prep Work for Preparing the School Budget • Examine history • Prioritize • Survey Staff • Review SIP • Seek assistance and training

25. Budgeting • Fixed, variable expenses • Use the guidelines provided • Review historical expenditures • Needs Assessment • Communicate

26. Accountable • Present to staff • Purchase in accordance with Public Purchasing Act • Receive Goods • Excellent record keeping

27. School Raised Funds Are funds that are generated at the school level for specific purposes. Internal Controls to safeguard cash must be in place. School Raised funds can be audited . Banking software to track funds.