DI-R2 - Acton School Budget Procedures Manual

ACTON SCHOOL DEPARTMENT

BUDGET PROCEDURES MANUAL

(as defined by the following policies)

DI:  FISCAL ACCOUNTING AND REPORTING

DB:   ANNUAL BUDGET

DBD:  BUDGET PLANNING

DBD-R:  BUDGET PLANNING PROCEDURE

DBG: BUDGET HEARINGS AND REVIEWS

PREPARED BY Kimberly Oliver

January 9, 2018

Revised December 8, 2022

TABLE OF CONTENTS

Introduction...........................................................................................    3 

Budgeting.............................................................................................    5

Budget Calendar.....................................................................................                                7

Budget Book…….....................................................................................    9

Budget Warrant…….....................................................................................   10

Reserve Funds ……………………..............................................................                         12

Budget Transfers/ Adjustments.....................................................................                         13

Budget Monitoring ........................................................................................                        13

Conflict of Interest/Code of Ethics...................................................................                     13

INTRODUCTION 

Acton School Department believes that the quantity and quality of learning programs are directly dependent on the funding provided and the effective, efficient management of those funds. Therefore, achievement of the Department’s purposes can best be made through excellent fiscal management.  To achieve this, a system of policies, accounting practices and procedures is necessary for the School to account for the receipt and disbursement of funds in an accurate, efficient and transparent manner as well as providing for the safeguarding of the School’s assets. 

Inherent in the governing process of Acton School Department is that employees who are entrusted with public funds are expected to safeguard those funds and assets and to expend funds in a manner that is efficient, economical and effective to achieve the purpose for which they were provided to the School. Employees who handle such funds must provide a full accounting of their activities to both the public and to other levels of government.  

School administrators should be familiar with the legal provisions with regard to the budget process. Assistance or legal advice may be obtained from the Maine Department of Education or the School’s legal counsel. 

Responsibilities – Administration’s Role 

Administration’s role in the budgetary process involves three major areas: 

1. Preparing budget proposals for consideration by the School Committee; 

2. Explaining and clarifying current fiscal conditions, fiscal prospects, and budgetary proposals to the School Committee; 

3. Implementing the budget enacted by the Town of Acton and monitoring performance to ensure that programmatic and fiscal objectives are met. 

Administrators must be involved in the details of the budget development and implementation. They must also seek to summarize these details and present information in a way that complements the School Committee’s policy making function. 

POLICY:  DI

FISCAL ACCOUNTING AND REPORTING

The Superintendent/Principal shall be ultimately responsible for properly accounting for all funds of the school unit.

The accounting used shall be in accordance with requirements of the Maine Department of Education and with government accounting practices, providing for the appropriate separation of accounts, funds and special moneys.

The School Committee shall receive monthly financial statements from the Superintendent/Principal showing the financial condition of the school system.

It shall be the duty of the Finance Director for the preparation of monthly and annual reports to the Superintendent and the School Committee; to advise administrators periodically of expenditures related to budget appropriations; and to prepare financial reports required by the Maine Department of Education or other agencies with jurisdiction.

Legal Reference: Title 20-A: Education Part 2: School Organization, Chapter 101 General                                                 Provisions Subchapter 2 Superintendent§1055 Superintendent powers and duties.

Adopted: February 12, 2002

Reviewed: January 9, 2018, December 8, 2022

BUDGETING 

Annual Budget 

The annual budget is the financial plan for the operation of the school system and provides the framework for both revenues and expenditures for the year. They translate into financial terms for the educational programs and priorities for the system. The General Fund budget is adopted and approved by the School Committee and the Town of Acton citizens. 

. 

Planning the budget document is a continuous process. Planning involves long-term thought, study, and deliberations by the Superintendent/Principal, school committee, administrative staff and faculty. 

 POLICY: DB

ANNUAL BUDGET

The School Committee recognizes that financial resources and the proper management of same are fundamental to the support of school programs and operations. With this in mind, the Committee will develop and present an annual operating budget as directed by applicable laws.

The annual budget will be for a 12-month period covering the fiscal year July 1 through June 30.

The School Committee shall designate the Superintendent/Principal as its budget officer, but he/ she may delegate portions of such responsibility as appropriate. The four general areas of responsibility are the budget are:  prep and presentation of the Superintendent/Principal’s budget, budget review by the School Committee, budget presentation to the public and budget administration.

Legal Reference: Title 20-A: Education Part 2: School Organization, Chapter 103 School               Administrative Districts Subchapter 4 §1301 Financing    

Title 20-A: Education Part 2: School Organization, Chapter 107 School         Unions §1902 Union Committees    

Title 20-A: Education Part 2: School Organization, Chapter 111: Municipal Schools Subchapter 1: School Committees §2307 School Budgets 

Adopted: February 12, 2002

Reviewed: January 9, 2018, March 10, 2022

POLICY: DBD

BUDGET PLANNING

In accordance with the statutes of the State of Maine and in the interest of sound fiscal planning, a budget shall be prepared and presented for consideration.  

The policy of the School Committee shall be to follow the planned projections as nearly as possible. Budget planning shall be a continuous process.

The budget shall reflect in detail the educational program or programs previously approved. Any changes or alterations in programs shall have been approved by vote of the School Committee.

Legal Reference: Title 20-A: Education Part 2: School Organization, Chapter 103 School               Administrative Districts Subchapter 4 §1306 Budget Format    

Adopted: PRIOR TO 1988

Revised: NOVEMBER 12, 1991

Revised: January 9, 2018 Reviewed: March 10, 2022

 DBD-R

BUDGET PLANNING PROCEDURE

It shall be the responsibility of the Superintendent/Principal to prepare the proposed budget for the following fiscal year according to the procedures established by the School Committee.

Following in-house deliberations and presentations to town officials, the School Committee will approve a final budget for voter consideration.

The budget, as approved by the town, will cover the period July l through June 30 of the following year.

Legal Reference: Title 20-A: Education Part 2: School Organization, Chapter 103 School               Administrative Districts Subchapter 4 §1306 Budget Format    

Adopted: PRIOR TO 1988

Revised: NOVEMBER 12, 1991

Revised: January 9, 2018, March 10, 2022

BUDGET CALENDAR

The annual operating budget should be enacted prior to the beginning of each fiscal year. 

Since the budget is an operating financial plan for the School, it is important that school officials know the terms of the budget early in the fiscal year, and preferably before the fiscal year begins. This knowledge will permit them to adjust for any changes the budget may require in services and procedures well in advance of the time they must be implemented. It also permits the central office to make the necessary entries in the financial records to begin controlling expenditures when the fiscal year begins. 

To ensure that the goal of enacting the budget prior to the beginning of the fiscal year is met, a budget calendar should be prepared that establishes all key dates. An example of a budget calendar is as follows:

Budget Preparation Time Line for FY20XX-20XX

November

The Superintendent/Principal meets with administrators and department heads.  Review the overall needs for the school.  Estimate the student count within grades.  Determine overall programs for each section, Pre-K to Grade 2, Grades 3-5 and Grades 6-8. Determine Special Education needs.  Confirm dates with Town of Acton for the budget meeting dates and the Special Town Meeting for the School Budget.                                 

December

Review individual budgets with teachers and summarize budgets by sections.  Stipend committee should meet and review stipends and determine if any changes are needed.  Review any new initiatives and programs and determine any budget impact.  Warrant and Finance committee should meet and determine their process working with the School Committee.

- Superintendent/Principal reviews budgets with Administrative Team 

January

The Superintendent/Principal presents the Budget Overview at the monthly School Committee meeting, the Warrant and Finance Committee and the Selectmen.  Board Budget work sessions start in January, February and March.

Budget Sessions:

JAN XXTH:  5:00PM Informational Meeting on the Budget Process.  

Jan XX 5:00PM First Budget meeting - Guidance, Health, Staff Training, Library, Technology Instruction (Article 6)

Feb XX - 5:00PM Nutrition (Article 12), Maintenance (Article 10), Capital Improvements, Other Instruction (Article 5), Transportation (Article 9)

Feb XX – 5:00PM School Committee meeting  & Budget meeting: System Administration (Article 7), School Administration (Article 8), Regular and Secondary Education (Article 2) and Special Education (Article 3) and review

March XX –5:00PM Budget Finalized

March xx – 5:00PM School Committee meeting & 6:0 Budget meeting: School Committee deliberations with Warrant and Finance Committee

March XX– Budget due at Town Hall for Selectmen’s meeting and signed warrant                 

April XX –Special Town Meeting or Ballot vote on School Budget

POLICY: DBG - BUDGET HEARINGS AND REVIEWS

Budget hearings shall be held for the purpose of allowing the Selectmen and the Warrant and Finance Committee of the Town an opportunity to ask questions and discuss the proposed expenditures of the district.

The procedure will be:

A.  A series of budget workshops during which the School Committee will deliberate   and approve the School Budget.

B.  The School Committee's approved School Budget is submitted to the Warrant and Finance for review.  The budget with recommendations from the School Committee and the Warrant and Finance is then presented to the Selectmen for their approval.

C.  The approved School Committee Budget is presented to the Town to approve the School Budget at the Special Town meeting. 

Legal Reference:  Title 20-A Education Part 2: School Organization, Chapter 103-A Regional School Units, Subchapter 4: Financing §1482 Budget Preparation

Adopted: February 12, 2002

Reviewed: March 14, 2018, March 10, 2022

BUDGET BOOK 

A budget book is prepared for the Special Town Meeting. This book includes financial information for Acton town voters to make an informed decision.  The Budget book for the upcoming fiscal year will have the following items:

• Letter from the School Committee Chair

• Letter from the Superintendent/Principal

• FY20XX-XX Budget Summary Comparisons

• Articles with Narratives

• ARTICLE 2 – REGULAR AND SECONDARY INSTRUCTION

• ARTICLE 3 - SPECIAL EDUCATION

• ARTICLE 5 – OTHER INSTRUCTION

• ARTICLE 6 – STUDENT SUPPORT STAFF

• ARTICLE 7 – SYSTEM ADMINSTRATION

• ARTICLE 8 – SCHOOL ADMINISTRATION

• ARTICLE 9 – TRANSPORTATION

• ARTICLE 10 – OPERATIONS AND MAINTENANCE

• ARTICLE 12 – NUTRITION

• Reserve Fund Balances

• Grant Fund Balances

• Enrollment Projection

• Essential Programming Services calculations

• Warrant calculations for Articles 13 & 14 

The School Committee is required to determine the allocation of the school budget among cost centers using the cost center summary format.  This process determines the budgeted expenditure amount in each cost center and follows the required format for the educational state subsidy program known as the Essential Programs and Services. 

BUDGET WARRANT 

The budget book lays out the foundation for the warrant and provides detailed information for all financial figures in the motions presented on the Town’s School Budget Warrant.  The warrant is a document issued by the Board of Selectmen to call a town meeting.  The warrant lists the items to be voted on by the registered voters who are present.  

Articles II through XII set the expenditure limits within each cost center. Each amount caps the amount the School is allowed to expend for that particular article.  Articles X111 through Article XV111 have other specific purposes.  The Maine State Statutes that refers to this process is Title 20-A: Education Part 2: School Organization, Chapter 111: Municipal Schools Subchapter 1: School Committees §2307 School Budgets.  The Maine State Statutes dictate the wording in each of these articles.

TOWN OF ACTON, MAINE  

SPECIAL TOWN MEETING WARRANT  

TO  

ROBERT ANDERSON  

A CONSTABLE IN THE TOWN OF ACTON  

YORK, SS  

GREETINGS:  

In the name of the State of Maine you are hereby in Town affairs to assemble at the Acton Town Hall on Tuesday, April XX, 20XX at 8:00am in the morning, to act on the following articles.  requested to notify and warn the inhabitants of said Town of Acton, qualified to vote 

ARTICLE 1 

To choose a Moderator for said meeting.  

After the election of Moderator, the polls will be open from 8:00am - 8:00pm to vote on the following referendum questions:  

ARTICLE 2 

Shall Town appropriate the sum of $X,XXX,XXX and raise the sum of $X,XXX,XXX for the 20XX-20XX School Budget?  

The Town of Acton school budget submitted in Article 2 totals $X,XXX,XXX.  It includes locally raised funds in the amount of $X,XXX,XXX to be assessed to Town taxpayers in accordance with state law. The locally raised amount exceeds the State’s Essential Programs and Services funding model by $X,XXX,XXX. 

This budget includes these cost centers and amounts:  

School Committee Recommends a “Yes” Vote  

Warrant and Finance Recommends a “Yes/No” Vote 

ARTICLE 3 

Shall the School Committee be authorized to expend such other sums as may be received from federal or state grants or programs or other sources during the fiscal year for school purposes provided that such grants, programs, or other sources do not require the expenditure of other funds not previously appropriated.  

School Committee Recommends a “Yes” Vote  

Warrant and Finance Recommends a “Yes/No” Vote

ARTICLE 4

To see if the Town of Acton will appropriate the receipt of certain Federal and State Grants and carry any previous balances for all Grant Revenue Accounts.  

School Committee Recommends a “Yes” Vote  

Warrant and Finance Recommends a “Yes/No” Vote 

ARTICLE 5

To see if the Town of Acton will appropriate the sum of $XXX,XXX from the Town’s unexpended funds to the School’s Designated Reserves Capital Account and to expend funds from that Reserve Account.  This account is used for emergency capital repairs.

School Committee Recommends a “Yes” Vote  

Warrant and Finance Recommends a “Yes/No” Vote 

Signed the ___________ day of March 20XX.  

__________________________________________  

David Winchell, Jr, Chairman  

_____________________________________________  

Tom McGurty

_________________________________________  

Kimberly Stacey Horn

RESERVE FUNDS / BUDGET TRANSFERS

Reserve Funds

The School’s reserve funds are funds that aid in the school budget process.  By having reserve accounts, the School Committee can budget for what they need.  This prevents over budgeting for just in case scenarios.  

The Town of Acton has authorized the School Department to have these reserve funds.  Each fund had an article to establish the fund, transfer funds in to it and allowed the School Committee to expend funds from it; as long as the request meets the purpose designated in each fund.  The School Committee is the trustee of the reserve funds as stated in Maine State Statute Title 20-A: Education Part 2: School Organization Chapter 103: School Administrative Districts Subchapter 4: Financing.

Budget Transfers/Adjustments

The Administrative Directors may transfer funds under their control from one area to another. Transfers may not be made from salary or fringe accounts. Normally, transfers may be made only from supplies, travel, equipment and other object accounts. The Administrator Directors who want to transfer funds through this procedure must email or notify the Finance & Personnel Director specifying which accounts are being increased and which accounts are being decreased with a reason for the transfer.  

Budget Monitoring 

The Finance Director will prepare monthly financial statements that will indicate the revised budget, total expenditures to date, and the balance remaining to be spent. These statements will be reviewed periodically by the Superintendent/Principal, Finance & Personnel Director, and Administrative Directors responsible for monitoring and managing budgets for programs under their supervision.   

CONFLICT OF INTEREST AND CODE OF ETHICS

Employment in the Acton School Department is a privilege entrusted by the public.  Employees of the School “must adhere to the highest levels of ethical conduct to preserve the integrity of the governmental process and avoid conflicts of interest.” * All Acton School Department employees are responsible for reading and complying with the information addressed in the Acton School Department Conflict of Interest adopted on January 9, 2018.  It is also imperative that immediate family members inform an Acton School Department employee of any intent of their employer to do business with the Acton School Department so that the Acton School Department employee may attend to any potential conflict of interest issue.