Budgetary Overview
Dawn Hammer

EDA-535
June 2, 2015

Welcoming a new board member, superintendent, or school level administrator can be a difficult task when it comes to the budget aspects of any school district. Thus it is vital for any administrator or person involved in the various aspects of the budget examine the basis for budget making decisions and the key accounting principles to be followed by all school districts. These budgetary processes can be addressed with four keystone parts. In the first area of emphasis is to understand the school districts generally accepted accounting practices on which the budget is to be founded. From there it is also essential to identify the key roles of the superintendent in the budgetary process as well as the role of those sitting on the board as school board members. This paper will also examine the methods and accounting principals in place to ensure that the budget is balances as well as coordinated accurately. Finally we shall look at generally accepted timelines for a budget as well as projections for student enrollment and all necessary funding ideals that should be included.
Generally Accepted Accounting Practices Regardless of the school, if there is to be a excellence in education, there is a requirement that the leaders have a vision and process for obtaining that vision (Bernhardt, 2013). The same can be said when designing a budget and working within the confines of the generally accepted accounting principles knows as GAAP. The main focus regardless of the changes that are sure to occur must be student success and a partnership with all stakeholders involved (CCSSO, 2008). GAAP is a foundation for which all school must spend and account for the tax dollars they receive from honest hard working individuals in a manner that is conducive to the most efficient and yet superior education one can provide. The primary purpose of adhering to these generally accepted accounting principles is to protect the publics’ interest as well as provide for a systematic method to a clearly defined vision and obtain transparency throughout the process (Brimley, 2011). These procedures to be followed for the budget and accounting processes of a school district are derived directly form the rules established by the Governmental Accounting Standards Board (GASB), which states that adequate planning and managing of monies and resources is an imperative role as education shifts in the direction of greater accountability (Brimley, 2011). Schools typically focus on the fund accounting system. This process separates each type of money into a separate fund to ensure self-balancing of accounts with all assets, liabilities, fund equity, revenues, and various expenditures or expenses. Under this system a double entry account system exists which consists of primary debits and credits similar to an everyday checkbook. Utilizing a detailed system allows for no mistakes to be undertaken and schools to ensure the integrity of the educational processes within their districts. These accounting systems are intricate and special care must be taken to ensure that funds from some accounts are not mixed in any shape with funds from other accounts. Responsibilities of Superintendent and School Board Members The role of the superintendent is primarily one of educational leadership. That being said there are various aspects that must be attended to for any superintendent. This person is charges the overseeing of the programs that occur in all schools as well as ensuring a safe and orderly school for all students within the district. While typically the superintendent is not directly tied to the budgetary process, it is mandatory they be aware of the policies and changes occurring as well as ensure academic integrity is being upheld. This person is typically a liaison between the schools and the school board ensuring all aspects are running efficiently and effectively for the best possible education of all students involved. Ultimately, the superintendent oversees the budgetary administering. Meanwhile, it is the school board that is ultimately responsible for approving the final budget for the district. Typically, it is mandatory for at least one school board member to sit as an active participant on the district budget committee in an effort to support the various phases and discretionary aspects of the complicated process. This development typically takes place with representative from various stakeholders, with the board member being present to ultimately support all ideas with a working idea of the budgetary process. Thus the board and financial advisor work to create a comprehensive budget typically utilizing the previous years budget. This process has four primary elements. The first of these is a planning period, which involved estimating enrollment for the next year. Typically these projections are done in March. After planning the actual receiving of funds, followed by spending the funds occurs. Perhaps the most important of the four steps is saved as the final step and often somewhat overlooked. That step being to evaluate the effectiveness of the results of the funds spent. Often times districts find themselves stuck in a rut of accepting or that what is simply should remain. Functions of a Budget The primary function of a budget is to prioritize the financial resources with in a school district while maintaining integrity and the vision for not only academic success but also the social success of each student inhabiting the buildings of the district. Creating a budget an adhering to that budget also ensures the legal obligations a school district has set fourth typically the state. There are guidelines for various aspects of a budget as well as an auditing system that takes place with in each and every state in an effort to uphold the integrity of each academic institution. The budget thus includes the sources and allocation of all funds, as well ad defining educational needs as pertinent to the budget planning process. Each state has a format that ensures accuracy, completeness, timeliness, simplicity and uniformity. These aspects are equally important in the creation of a well-rounded budget. It is self-evident the meaning of accuracy and that all monies are being allocated according to their clear definitions in an effort to ensure no illegal actives are occurring. A budget should also be complete in its entireness. This means that the ideas and values of the district are maintained at each level with a clear vision of the future paths to traverse. There are typically timelines established that allow for schools to know when various aspects of the budgetary process must be completed. The forms are both uniform and relatively simplistic in nature to ensure there is consistency within and throughout varying school districts in the state.
Methods of Balancing As with any budgetary process, there are various checks and balances in place to ensure the integrity of the district and that the public funds are being utilized correctly. Such aspects as no one person may dispense of funds are in place with at least two signatures required for all transactions. Typically these signatures include the superintendent and the business manager, however, they may also involve school level administrators or other relevant individuals pending the situation. Most school has a purchase order and requisition system in place for various school level purchases and large purchases or trips require the approval of the board.
All of these checks and balances have been implemented and established as a method to track purchases and ensure all accounts are auditable upon necessary and relevant visits from the state.
Conclusion
Schools as well as various public institutions must have an accurate and transparent budgetary process. That process must include all stakeholders relevant to the situation including but not limited to school level administrators, superintendents, and board members. Typically once a budget has been determined there is a version printed and distributed to the public for viewing. This is an intelligent practice for any superintendent in an effort to be transparent and show the reality of where public funds are being allocated. This practice ensures a check and balance process allowing for all to see that ultimately the student’s well-being and success are the bottom line. It is imperative with this bottom line that those involved in the process make certain the manner in which the goals are achieved are the most efficient and effective methods for reaching the end, in an effort to ensure ultimate accountability.

References
Bernhardt, V.L. (2013). Data analysis for continuous school improvement (3rd ed.). Taylor & Francis Group. ISBN: 978-1-59667-252-9.
Brimley, V. R., Verstegen, D. A, & Garfield, R. R. (2011). Financing education in a climate of change (11th ed.). Upper Saddle River, New Jersey: Pearson Education Inc.
CCSSO. (2008). Educational Leadership Policy Standards: ISLLC 2008.