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Littleton Public Schools Policy |
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Policy Code DB Policy Name Annual Budget Adoption July 2, 1984 Revised September 1, 2011 |
The Board of Education recognizes its responsibility to provide policy direction, guidance, and support to the Superintendent and staff in the creation of an annual budget, as prescribed by Colorado Revised Statutes. The Board of Education recognizes further that the budget is an alignment of the needed human and fiscal resources that is driven by the District’s values, mission, outcomes, and priorities. The primary objectives of the budget process are to:
Facilitate input from staff, parents, students, and community patrons regarding the alignment of resource allocation to desired outcomes.
Provide the historical data required for realistic budget preparation and related planning decisions.
Provide a means of comparing planned (budgeted) expenditures against actual expenditures.
Develop an annual budget which may serve as a financial plan and communications document aligned with Board of Education policy.
Review a five-year budget forecast, subject to annual appropriation, that addresses the future financial viability of the District.
Provide for the fiscal stability of all funds of the District.
Provide each administrator with budgetary responsibility with the financial information necessary to prudently monitor expenditures throughout the year. This includes the approved budget for the year, expenditures and commitments to date, and the balance of funds available. The individual responsible for the program must be sure that the financial management is consistent with Board of Education policy.
Comply with spending limitation outlined in Article X, Section 20, of the Colorado Constitution, including holding Taxpayer’s Bill of Rights (TABOR) reserve funds in a general fund restricted fund balance.
Allow for the borrowing of unencumbered moneys in any fund by another fund (except the Debt Service Fund) provided that any loan is repaid within three months after the beginning of the following budget year. A Board of Education resolution is required to authorize any interfund borrowing.
Planning and Compilation
It shall be the responsibility of administrators with budgetary responsibility to involve appropriate staff members and community of the District in the budget planning process.
Requests
Based upon the educational plan as approved by the Board of Education, estimates of the appropriations needed to finance the educational program will be made. These budgetary estimates will then be summarized, supported, and recommended to the Board of Education by the Superintendent.
Priorities
An integral part of the budget preparation procedure shall be that of projecting revenues. If the program needs or requests are in excess of the funds available, priorities must be determined by the Board of Education and the Superintendent.
Presentation and Publication
To the Board of Education
The proposed budget must be submitted to the Board of Education along with a statement describing the major objectives of the educational program to be undertaken by the District during the ensuing fiscal year.
Hearings
There shall be a public Board of Education meeting at which a review or hearing of the budget shall take place. At such meeting, the Board of Education shall review the proposed budget and elicit from the citizenry constructive suggestions for improving the budget or hear any objections to the proposed budget prior to its final adoption.
Final Adoption
The Board of Education shall adopt a budget and an appropriation resolution for each fiscal year prior to the beginning of the fiscal year for which adopted.
Budget as a Spending Plan
The approval of the annual budget by the Board of Education provides authorization of the Superintendent and the administrative staff to expend any or all of the amounts appropriated to the limit of each separate fund for the specific budget year.
Responsibility for Administering
The Board of Education assigns to the Superintendent overall responsibility for annual budget presentation and budget administration.
Methods and Procedures
The Superintendent shall be guided in the responsibility of budget management by the limitations as established by C.R.S., budgetary restrictions, and the policies as established by the Board of Education.
Year-end Fund Balance
Maintaining a fiscal year-end fund balance is a beneficial and sound financial management practice. The Board of Education assigns to the Superintendent or designee the responsibility of accumulating and maintaining at a minimum a general fund unassigned fund balance amounting to five percent of the District’s current fiscal year adopted general fund revenue budget. This amount will be in excess of the emergency reserve required by Article X, Section 20 of the Colorado Constitution (TABOR) and other restricted, nonspendable, committed, or assigned general fund fund balances.
The five percent year-end unassigned fund balance will be used only for an unexpected loss of revenue or an extraordinary expenditure. Expenditures from the year-end fund balance shall be reported to the Board of Education.
If any part of the year-end unassigned fund balance is used in any fiscal year to cover an unexpected loss of revenue or an extraordinary expenditure, those funds will be reallocated to fulfill the five percent required year-end unassigned fund balance before any other budget allocations in the subsequent fiscal year, unless the Board of Education approves otherwise.
Risk management (sub fund of the General Fund) and the capital projects funds’ fund balances shall be committed for appropriations and intended uses of these funds as required by Board policy DIB “Funds.” The Athletics and Activities fund special revenue fund balances will be restricted as required by law and all remaining balances will be committed. Fund balances accumulated due to under spent budgets may be assigned by the Superintendent to the subsequent year’s budgets.
Legal Reference: C.R.S. 22-32-109(1)(b)
C.R.S. 22-44 -101 through 117
C.R.S. 29-1-103