«R01 FY17 Financial Tools Handbook 2016-2017 Financial Tools Handbook Updated March 2016 Gerald Pace, J.D., Chief Financial Officer LaWanda Baldwin, ...»
R01 FY17 Financial Tools Handbook
Updated March 2016
Gerald Pace, J.D., Chief Financial Officer
LaWanda Baldwin, Comptroller
Kris DeCato, J.D., Director Procurement & Risk Management
Shannon Gordon, Sr. Director Financial Planning & Budget Services
R01 FY17 Financial Tools Handbook
2016-2017 Financial Tools Handbook
TO: School Leaders
FROM: Gerald J. Pace, J.D., Chief Financial Officer
RE: 2016-17 Financial Tools Handbook The updated 2016-17 Financial Tools Handbook serves as a user-friendly summary of key financial management information and resources. The handbook is a tool you can access online anytime and use all year to find practical information and useful answers to a variety of financial management issues. The online version has helpful links that allow you to use the most up-to-date information and forms. Best practices, definitions, and more detailed explanations have been included to help you understand the importance of the work you do and how it can impact student success. You can also find more detailed information on all of these topics on mConnect.
Student enrollment drives resources. Over-enrolling and under-enrolling both present their own set of unique challenges. All planned expenditures must comply with district policies, rules, and regulations. Be sure to know and understand all the funding streams and resources available, including Board and grant funding. Be aware of requirements and restrictions related to the expenditure of grant funds and how it impacts the financial choices you make. If you would like more information on grant funds and how they impact your school, please contact your budget analyst.
School leaders can expect to receive the best support from our dedicated team. Finance staff is committed to providing you with excellent customer service. Together we can achieve wonderful things. I encourage you to take a few minutes to review the district’s financial standards and the online resources available to you. I highly recommend taking advantage of the variety of professional development opportunities offered throughout the school year to support your success as the financial manager of your school’s resources.
Sincerely, Gerald Pace, J.D.
Chief Financial Officer Any questions regarding this Financial Tools Handbook can be directed to the Financial Planning and Budget Services Department via email at firstname.lastname@example.org or phone at 475-8141.
OFFICE OF FINANCE
OFFICE OF FINANCE ORGANIZATIONAL CHART
Office of Finance – Regional System of Support
ACTIVITY RESOURCE DIRECTORY
2016-17 (FY17) UPDATES AND CHANGES SUMMARY
New in 2016-17 (FY17)
CHANGES CONTINUING FROM 2015-16 (FY16)
SCHOOL FINANCIAL STANDARDS
Financial Management Accuracy Opportunities
Understanding Account Codes
Viewing and Monitoring Reports
Line Item Budgets: Board and Grant
Monitoring budget balances and expenditures (after each payroll)
BCRB Board or grant budget reports
Finding a Current Budget Balance using the BCRB
LES Board or grant budget reports
Monitoring Expenses Through the LES Report
Removing Old Encumbrances – over 1 year old
Managing Budget Sections 1 and 2
Position Salaries and Benefits
2016-2017 Financial Tools Handbook Non-Salary Expenditures
How to Monitor and Plan Ahead to Determine Remaining Funds
Other Wages (Non-position Salaries)
Other Benefits (Non-position Benefits)
sUPPLy expenditures – Common School Fund
Special Note on Charging Accounts
Managing Grant (Categorical) Funds
Title I Expenditures
Time and Effort Reporting
Other Grant Information
Staff Assignment Reporting Tools
Data Warehouse – School Staff Report
Understanding the Variance
PeopleSoft Position Report Per Payroll
Verification of Staff Assignments
Correction of Staffing and Account Codes: Board Funds
Correction of Staffing and Account Codes: Grant Funds
Grant Employee Position Form
Acceptance of Gifts and Donations
Corrections and Changes to Expenditure Coding
Request-To-Fill a Position
ADDITIONAL SCHOOL MANAGEMENT INFORMATION
2016-2017 Financial Tools Handbook Procurement & Risk Management
Theft (Policy 6.17)
Procurement, Contracting, and Administrative Policy 3.09
Summary of Administrative Policy 3.09 – Purchasing and Bidding Requirements
The Office of Finance ensures the financial stability and fiscal integrity of Milwaukee Public Schools. The Office is organized into three departments; Financial Planning and Budget Services, Financial Services, and Procurement and Risk
Management. These departments work collaboratively to achieve the following:
Safeguards and act as the steward of the District’s assets;
Ensures the organization has a system of adequate financial internal controls;
Ensures organizational compliance with various legal and statutory requirements;
Provides reliable and relevant financial and budgetary information to all district and community stakeholders;
Forms the basis of sound fiscal and operational decision making;
Performs the tasks of accounting including school accounting, accounts payable & receivable, payroll, banking, cash and debt management, trust accounting, fixed asset reporting, procurement, insurance & risk management, grant financial management and general ledger maintenance;
Builds community support; and Advises the Superintendent on financial matters, compliance, efficiencies, investments and strategy.
The Department of Financial Planning & Budget Services provides analytical support and recommendations for financial resources in the areas of budget, performance, and program policy;
Financial Planning preserves and enhances financial resources through budget monitoring and dissemination of & Budget Services information; coordinates ESEA compliance and non-public school services; processes Medicaid claims;
and develops the proposed and final adopted budgets.
NEW IN 2016-17 (FY17) For FY17, each school's preliminary allocation was reviewed in comparison to FY16 taking into consideration higher costs, grant and enrollment changes. Any school which was adversely affected by the combination of these changes that impeded a reasonable standard of care received a central allocation (aka transition funding) to ensure minimal year-to-year loss of purchasing power.
Achievement Gap Reduction (AGR) Program (formerly SAGE) The Student Achievement Guarantee in Education (SAGE) Program has been transitioned by state law (s.118.43, s.118.44) to become the Achievement Gap Reduction (AGR) Program. The AGR program provides funding support for grades K5 through 3rd in schools previously receiving SAGE program funding.
The AGR program allocation will remain comparable to SAGE however, there are differences in how the funding will be budgeted and spent at schools.
AMP (Art, Music, Physical Education and Library Media Specialists) AMP allocations at traditional and instrumentality charter schools have generally rolled over from FY16 to FY17.
Schools with significant enrollment increases may receive a larger allocation in FY17. These are currently Howard, Meir, Spanish and French Immersion.
Schools with Art, Music and/or PE teacher positions remaining vacant after 3rd Friday may reallocate those AMP funds to support contract services. Schools are required to use approved vendors. Contact Deb Jolitz in the Office of Academics for approval for these contracts.
BDC Funding Schools that received additional FTEs approved by their Regional Superintendent as a FY16 budget adjustment are reminded that this funding is not carried over to FY17. Therefore, any staff assigned to centrally funded positions should be excessed or moved to the school’s Board budget.
Deficits Schools are reminded that there will be no deficit forgiveness for FY16. Deficits were forgiven for FY15 and all schools began the FY16 school year with a balanced budget. Schools are required to budget and estimated amount in FY17 to reduce anticipated FY16 deficits. Deficits should be eliminated in a three-year period and repaid 1/3 each year until the deficit is eliminated.
ESL (English as a Second Language) Teachers and Paraprofessionals ESL teachers will be allocated based on a weighted proficiency level of enrolled students for each school. Schools receiving a partial (0.5 FTE) teacher allocation will also be allocated a paraprofessional (0.75 FTE). No other ESL paraprofessionals will be allocated.
2016-2017 Financial Tools Handbook Instrumentality Charter Schools Two significant budgeting options became available in FY16 for instrumentality charter schools and will be continued in FY17. These options pertain to use of actual salaries and multiple projects. To take advantage of these options, school leaders must return the required form with their school budgets. More information and the required form may be found with other budget documents through the IFAS “Budget” Dashboard Budget Preparation tab and clicking “Link to Budget Preparation Tool Kit”. School leaders are reminded that if a new option is selected, the school will be committed to this option through the duration of their contract and cannot return to the previous option.
Learning Journeys Transportation for Learning Journeys has been centralized. Schools are no longer required to budget for this expense.
Specialty School Funding Specialty school funding for positions listed below will be added to the Board budget for each school. Positions and Section 3 allocations will be budgeted by school leaders.
Art Schools, IB Schools and Milwaukee School of Languages will receive 1.0 FTE teacher and $150 per student.
All other specialty schools will receive 2.25 FTE paraprofessional and $150 per student (Montessori, Language Immersion, Dual Language - Fratney and Hayes, Gifted and Talented, Career & Tech, and STEAM).
Bilingual Schools will receive $150 per bilingual student.
Title I Title I grant funding to MPS will be adjusted in FY17 due to changes in enrollment and the formula identifying economically disadvantaged families.
Schools with 800 or more students and all K-12 schools will receive 1.0 FTE of a Parental Involvement paraprofessional. All other Title I schools will receive 0.75 FTE Parental Involvement paraprofessional.
Title III Title III (T37/204) Bilingual Funding depends on ACCESS testing results. Participating schools will be notified when these funds are available however, this will occur after the FY17 budget process is completed.
Traveling Music Lessons Costs for traveling music lessons have decreased from $1,770 in FY16 to $1,405 in FY17 per 1 hour class of eight students per week for 36 weeks. Instrument rental remains $10 per instrument and method books will be $5 each.
As in FY16, there are no centrally funded traveling music instructors. If traveling music instructors are desired, these must be funded out of the Board budget and requested using the Optional Services Form.
On June 25, 1998, the Milwaukee Board of School Directors passed a resolution establishing financial standards for schools.
These Standards provide school leaders with controls necessary to minimize the risk of theft and financial fraud. School leaders are expected to implement these standards and each will be held accountable for the financial condition of their school. A school leader’s evaluation will include a financial performance measurement. There are ten financial standards
adopted by the Board. Each of these standards is defined below with additional explanation provided in italics:
#1 Budget Management School budgets should be managed and controlled to maximize benefits allowed under the financial standards.
School leaders are responsible for determining that all expenditures are reasonable, ordinary and necessary for the operation of the school; using appropriate account codes; establishing and authorizing purchasing procedures;
retaining adequate funding levels throughout the fiscal year; and aligning the budget with the school’s educational plan.
Use of IFAS tools such as the drill down feature in the Budget Control Remaining Balance and LES reports will provide detailed information concerning a school’s current financial status and funds availability.
#2 Payroll Authorizations School leaders must authorize their payroll each pay period. Once the payroll is entered and authorized, a copy of both the ready- to-be- authorized and authorized payroll with the school leader’s signature should be printed and retained for a minimum of seven years for audit purposes. School leaders must “password protect” the authorization function, and should not reveal their authorization password to secretaries or other employees.
Supporting documentation should be approved by the school leader and retained for seven years.
Additionally principals are required to validate their assigned non-hourly employees each pay period. Principals will be able to select a “Do not Pay” box to identify any discrepancies in assigned non-hourly employees. Checking the "Do not Pay" box will send an alert to the Office of Human Capital Services that this employee is not working at their site.