Comprehensive Overview of Budget Requirements for Colorado Charter Schools
Explore the statutory requirements and timelines associated with budget preparation and submission for Colorado Charter Schools, as outlined by the Colorado Charter School Institute (CSI). Delve into the purpose of budgets, key deadlines, necessary documents, and what needs to be presented to the board, providing a detailed understanding of financial operations for educational planning and resource allocation.
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Budget - Statutory Requirements Colorado Charter School Institute CSI Finance
Agenda Budget Purpose Budget Timeline and Due Dates What to Present to Board Other Budget Statutes Monitoring and Analysis Resources
Purpose of a Budget Required by statute C.R.S. 22-44-103 Provides a plan of financial operation Reflects educational values and needs of schools Promotes rational decision-making Assists board members and administrators in educational planning and prioritization of school operations through the allocation of resources
Budget Timeline Before 6/01 Within 10 days Before 7/01 By 1/31 After 1/31 Submit Proposed Amended Budget to the board Submit Proposed Budget to board Post notice of Proposed Budget Board adopts Proposed Budget Board adopts Amended Budget Optional Supplemental Budget **Board resolutions are required for adoption and use of beginning fund balance**
CSI Budget Deadlines Due to CSI by June 30th Include: 1) Signed and dated budget/appropriation resolution 2) Uniform Budget Summary (C.R.S. 22-44-105(1)(d.5)) 3) Detail budget document that contains the current year budget, amount estimated to be expended for the current fiscal year, and the amount budgeted for the ensuing fiscal year 4) Resolution to spend beginning fund balance if needed Adopted Budget
CSI Budget Deadlines Cont. Due to CSI by January 31st Include: 1) Signed and dated budget/appropriation resolution 2) Uniform Budget Summary 3) Detail budget document with prior year budget, final prior year actuals, and current year proposed amended budget 4) Resolution to spend beginning fund balance if needed Amended Budget
What to Present to the Board Detail Budget Uniform Budget Summary Appropriation Resolution Use of Beginning Fund Balance Resolution (if needed)
Detail Budget Contents Annual Adopted Budget must include: a) Uniform Budget Summary C.R.S. 22-44-105(1)(d.5) b) TABOR reserve C.R.S. 22-44-105(1)(c.5) c) SPED reserve d) Pupil count C.R.S. 22-44-105(1)(b) e) Summarized revenues by source and expenditures by fund, function, and object C.R.S. 22-44-105(1)(c.7) f) Detailed budget format (C.R.S. 22-44-105 (c)) to include: 1. Description of the expenditure 2. Amount to be budgeted for the current fiscal year 3. Amount estimated to be expended for the current year 4. Amount budgeted for the ensuing fiscal year
Detail Budget Contents (cont.) Annual Amended Budget must include: a) Uniform Budget Summary C.R.S. 22-44-105(1)(d.5) b) TABOR reserve C.R.S. 22-44-105(1)(c.5) c) SPED reserve d) Pupil count C.R.S. 22-44-105(1)(b) e) Summarized revenues by source and expenditures by fund, function, and object C.R.S. 22-44-105(1)(c.7) f) Detailed budget format (C.R.S. 22-44-105 (c)) to include: 1. Description of the expenditure 2. Prior year final approved budget 3. Prior year final actuals (audit) 4. Current year proposed amended budget to be approved by the board
Reserves TABOR C.R.S. 22-44-105(1)(c.5) Taxpayer Bill of Rights - Article X, Section 20 of Colorado Constitution 3% of schools fiscal year spending excluding bonded debt service Fiscal year spending means all expenditures and reserve increases, except those from gifts, federal funds, collections for another government, pension contributions by employees and pension fund earnings, reserve transfers or expenditures, damage awards, or property sales SPED CSI Requirement Implemented to assist schools in ensuring they have funding available for severe needs students $100 per funded pupil, not to exceed $90,000
Uniform Budget Summary Required by statute C.R.S 22-44-105(1)(d.5) Total expenditures and appropriated reserves on this summary must tie to the board appropriated amount (line 176) Must include (C.R.S. 22-44-105(1)(d.5)(I-V): Beginning fund balance Anticipated ending fund balance Anticipated fund revenues for the budget year Anticipated transfers and allocations for the budget year Anticipated expenditures for the budget year Amount of reserves
Uniform Budget Summary (cont.) Should sum to $0 (line 198) Must designate if reserves are appropriated or non-appropriated Indicates whether you need a beginning fund balance resolution If line 200 says yes , use of beginning fund balance is required Appropriating reserves may cause you to require a use of beginning fund balance resolution
Uniform Budget Summary (cont.) Where to find it: http://www.cde.state.co.us/cdefinance
Uniform Budget Summary (cont.) Fill in budget information based on CDE chart of accounts You can delete unused columns (but not rows)
Uniform Budget Summary Appropriated Reserves Section Budgeted Ending Fund Balance Will not cause the use of beginning fund balance resolution May cause the use of beginning fund balance CDE Chart of Accounts CDE Chart of Accounts -Balance sheet codes for fund equity as indicated on summary -Object 0840 -Programs 9XXX as indicated on summary -Option use of program
Uniform Budget Summary Example
Uniform Budget Summary Example
Uniform Budget Summary Example
Uniform Budget Summary Example
Uniform Budget Summary Example
Uniform Budget Summary Example
Appropriation What is an appropriation? C.R.S. 22-44-102(1) Appropriation means the setting aside by resolution of a specified amount of money for a fund with an authorization to make expenditures and incur obligations of the purposes thereof
Appropriation (cont.) Appropriation Resolution C.R.S. 22-44-107(1) Sample appropriation resolution and language on CSI website https://resources.csi.state.co.us/financial-services-library/ Be it resolved by the Board of Education of _________ Charter School in _________ County, that the amounts shown in the following schedule be appropriated to each fund as specified in the Adopted Budget for the ensuing fiscal year beginning July 1, 20XX and ending June 30, 20XX. List funds and specify the appropriated amount for each fund. A sample is shown on the next slide. The amount appropriated cannot exceed the amount in the adopted budget. C.R.S. 22-44-107(2) Requires the words Adopted Budget , the name of the school, the date of adoption and the signature of the president of the board C.R.S. 22-44-110(4)
Sample Appropriation The amount appropriated is the amount the board approves to be spent in the specific period of time Should match the Uniform Budget Summary Line 176 Total Expenditures and Reserves The amount appropriated cannot exceed the amount in the adopted budget
Use of Beginning Fund Balance If the budget includes the use of beginning fund balance, you must have a board resolution C.R.S 22-44-105(1.5)(a) Resolution at a minimum, must include these items: 1. Amount of beginning fund balance to be spent 2. State why expenditures(s) is/are needed 3. State plan to ensure that the use of beginning fund balance will not lead to an ongoing deficit If at any time during the fiscal year following the adoption of the budget, the board determines that the use of an additional portion of beginning fund balance is necessary, the board should adopt another resolution before using additional portion of fund balance. C.R.S 22-44-105(1.5)(a)
Use of Beginning Fund Balance (cont.) Comparison of reporting differences Appropriated vs. Non-Appropriated Fund Balances/Reserves Without Appr Reserves 1,072,000.00 (1,050,000.00) With Appr Reserves 1,072,000.00 (1,050,000.00) Revenues Transfers/Allocations Total Budgeted Revenues Expenditures Appropriated Reserves Total Budgeted Expenditures and Reserves Net Increase/(Decrease) 222,000.00 850,000.00 222,000.00 850,000.00 - (28,500.00) (1,050,000.00) 22,000.00 No (1,078,500.00) (6,500.00) Yes Total Budgeted Expenditures and Appropriated Reserves is the amount appropriated by the board.
Use of Beginning Fund Balance (cont.) Sample resolution (short version): BE IT RESOLVED: In accordance with C.R.S. 22-44-105, the Board of Education authorizes the use of a portion of the Fiscal Year 2019-20 Beginning Fund Balance from the General Fund in the amount of $xx,xxx for the following purposes: $xx,xxx authorized in the General Fund for ___________ . BE IT FURTHER RESOLVED, that the use of this portion of the beginning fund balance for the purposes set forth above will not lead to an ongoing deficit, provided the use of the funds from the fund balance is one time only. NOTE: This resolution is needed even if it is only appropriated in the budget and not actual spent.
Notice of Budget Notice of BudgetC.R.S. 22-44-109 Public notice must be given of proposed budget within 10 days after submission of the proposed budget NOTICE OF PROPOSED SCHOOL BUDGET Notice is herby given that a proposed budget has been submitted to the Board of Education of ____________(name of charter school) for the fiscal year beginning July 1, 20__ and has been filed in the office of _____________ where it is available for public inspection. Such proposed budget will be considered for adoption at a ________________ (regular or special) meeting of the Board of Education of said Charter School at _____________ (place) on __________(date) at __________(time). Any person paying school taxes in said district may at any time prior to the final adoption of the budget file or register his objections thereto.
Supplemental Budgets If money for a specific purpose subsequently becomes available to meet a contingency , which is defined as: an act of God or the public enemy, or some event which could not have been reasonably foreseen at the time of adoption of the budget of a school district, C.R.S. 22-44-102(3), a supplemental budget for expenditures not to exceed the amount of said money may be adopted and appropriation of said money made. C.R.S. 22-44-110(5). A supplemental budget and the appropriation resolution must be adopted before expenditures relative to the supplemental budget are made.
Supplemental Budget Sample
Failure to Adopt a Budget If either the budget or the appropriate resolution is not adopted, then 90% of the last duly adopted budget appropriation resolution shall be deemed to be budgeted and appropriated. C.R.S. 22-44-104
Cannot Budget Deficit Budgets adopted by the board cannot have expenditures, interfund transfers and reserves that exceed the available revenues and beginning fund balance. C.R.S. 22-44-105(1.5)(a)
Budget - Filing A copy of the adopted budget and the appropriation resolution must be placed on file in the school s administrative office where it is available for inspections throughout the fiscal year. C.R.S. 22-44-111(1)
Monitoring and Analysis The school board must review the financial condition of the school against the annual budget at least quarterly. C.R.S. 22-45-102(1)(a)&(b) The report to the board must include: Actual expenditures and revenue as of the date of the report for each of the several funds budgeted by the school for the fiscal year Expressed in dollar amounts Expressed in percentages of the annual budget Actual expenditures and revenue for each fund for the same period in the preceding fiscal year Expressed in dollar amounts Expressed in percentages of the annual budget Expected year-end balances Expressed in dollar amounts Expressed in percentages of the annual bud Comparison of the expected year-end fund balances with the amount budgeted for that fiscal year
Monitoring and Analysis (cont.) Time-of-year comparison: Compare the percentage of the year which has elapsed with the percentage of the budget which has been expended or the percentage of revenue received. Comparison of prior year: Compare the dollar amount or percentage of total budget spent in the prior year to dollar amount or percentage of total budget spent in the current year. Comparison to source documentation: Compare budget to actual costs by reviewing documents received after the establishment of the budget to ensure budget adequacy.
Sample Quarterly Report Sample Quarterly Statement that Meets Requirements of C.R.S. 22-44 Part III Statute requires the board of education to review the financial condition of the district/charter school at least quarterly during the fiscal year. The board shall require the appropriate personnel to submit a financial report covering the fiscal actions involving the general fund and any other funds that the board may request, at least quarterly. Name of State Charter School Charter School Fund July 1, 2019 through March 31, 2020 (with comparative data from Fiscal Year 2018-19) Fiscal Year 2018-19 Fiscal Year 2019-20 Fiscal Year 2019-20 Forecast Estimated Year-End Actuals for Fiscal Year $68,000 Percent of Revised Budget Estimated Actuals as a % of Budget Year-to-date Actual $90,000 Year-End Actual $90,000 Percent of Final Budget 100.00% Original Budget $100,000 Revised Budget (2) $100,000 Year-to-date Actual $68,000 Variance to Budget -$32,000 Account Description (1) Final Budget $90,000 BEGINNING FUND BALANCE (3) 68.00% 68.00% REVENUES State Share $1,000,000 $750,000 $1,000,000 75.00% $1,000,000 $1,100,000 $770,000 70.00% $1,100,000 0 100.00% Total Revenues Total Available Resources 1,000,000 1,090,000 750,000 840,000 1,000,000 1,090,000 75.00% 77.06% 1,000,000 1,100,000 1,100,000 1,200,000 770,000 838,000 70.00% 69.83% 1,100,000 1,168,000 $0 100.00% 97.33% -32,000 EXPENDITURES Salaries Benefits Purchased Services Supplies Total Expenditures 700,000 175,000 100,000 75,000 1,050,000 500,000 130,000 50,000 50,000 730,000 700,000 160,000 75,000 85,000 1,020,000 71.43% 74.29% 50.00% 66.67% 69.52% 700,000 175,000 100,000 75,000 1,050,000 720,000 180,000 150,000 75,000 1,125,000 530,000 133,000 50,000 45,000 758,000 73.61% 73.89% 33.33% 60.00% 67.38% 720,000 180,000 100,000 75,000 1,075,000 0 0 100.00% 100.00% 66.67% 100.00% 95.56% -50,000 0 -$50,000 Net Income -50,000 20,000 -20,000 -40.00% -50,000 -25,000 12,000 -48.00% 25,000 50,000 -100.00% OTHER RESOURCES: Transfers to Other Funds Other Financing Sources Total Other Resources Total Current Year Expenditures & Other Resources 2,000 2,000 2,000 100.00% 2,000 3,000 2,250 75.00% 3,000 0 100.00% 2,000 2,000 2,000 100.00% 2,000 3,000 2,250 75.00% 3,000 0 100.00% 1,052,000 732,000 1,022,000 69.58% 1,052,000 1,128,000 760,250 67.40% 1,078,000 -50,000 95.57% RESERVES DESIGNATED TABOR 3% Emergency Reserve (4) SPED Reserve Unreserved Fund Balance (5) ENDING FUND BALANCE 30,000 22,500 30,000 75.00% 0.00% 1068.75% 284.21% 30,000 13,800 4,200 $48,000 33,000 13,800 25,200 $72,000 23,100 13,800 40,850 $77,750 70% 100% 162% 33,000 13,800 43,200 $90,000 0 0 100.00% 100.00% 171.43% 125.00% 0 0 0 8,000 $38,000 85,500 $108,000 38,000 $68,000 18,000 $18,000 107.99% (1) if you include the account number, it will help CSI with the CDE Data Pipeline Finance Report (formerly Automated Data Exchange (ADE)) requirements (2) if applicable (budget cannot be revised after January 31 of fiscal year) but supplemental budget resolutions may be adopted (3) if school plans to use part of beginning fund balance, Board must adopt mandatory language (See FPP Manual) (4) TABOR is 3% of fiscal year spending or expenditures plus increase in fund balance (see Title X, Section 20 of State Constitution) (5) Unreserved Fund Balance cannot be negative
Resources Statutes pertaining to budget: C.R.S. 22-44-102(1) Definition Appropriation C.R.S. 22-44-102(3) Definition Contingency C.R.S. 22-44-103 Budget Required C.R.S. 22-44.104 Failure to adopt a budget or appropriation C.R.S. 22-44-105(1)(b) Allow for comparisons of revenues/expenditures among schools by pupil C.R.S. 22-44-105(1)(c) Detail of budget C.R.S. 22-44-105(1)(c.5) TABOR C.R.S. 22-44-105(1)(d.5) Uniform summary sheet C.R.S. 22-44-105(1.5)(a) Budget expenditures cannot exceed available revenues and beginning fund balance C.R.S. 22-44-105(1.5)(a)&(c) Use of beginning fund equity C.R.S. 22-44-106(2) Budgetary reserves C.R.S. 22-44-107 Appropriation resolution C.R.S. 22-44-108(1)(c) Preparation of budget (submit to board 30 days prior to beginning fiscal year) C.R.S. 22-44-109 Notice of proposed budget C.R.S. 22-44-110(4) Adoption of budget C.R.S. 22-44-110(5) Supplemental budget C.R.S. 22-45-102(1)(a) & (b) Quarterly Reports to the Board C.R.S. 22-30.5-111.7 Charter schools shall comply with all state financial and budget rules, regulations and financial reporting requirements with which the authorizer is required to comply TABOR Amendment Article X Section 20 (5) of the state constitution To view Colorado Revised Statutes: http://leg.colorado.gov/colorado-revised-statutes To view Colorado Constitution: http://leg.colorado.gov/colorado-constitution
Resources cont. CDE Uniform budget summary and sample appropriation resolution found in the budget templates: http://www.cde.state.co.us/cdefinance >Budget Templates - FY 2018 >Uniform Budget Summary CDE Chart of Accounts http://www.cde.state.co.us/cdefinance/sfCOA.htm CSI Templates Quarterly financial report https://resources.csi.state.co.us/financial-services-library/ >Under Financial Reporting Annual budget Supplemental budget Sample Use of BFB authorization resolution Sample Appropriation Resolution https://resources.csi.state.co.us/financial-services-library/ >Under Budget Process Financial Policies and Procedures Handbook http://www.cde.state.co.us/cdefinance/fpphandbook
