03 budget preparation · 03 budget preparation. learning objectives. 3. the ability to prepare a...

TALKING FINANCES 2013

A FIN

AN

CIAL M

AN

AG

EM

EN

T PR

OG

RA

M FO

R SCH

OO

L AD

MIN

ISTRATO

RS

PR

EPA

RE

D B

Y: FIN

AN

CIAL SE

RV

ICES DIV

ISION

SCHO

OLS R

ESOU

RCE

ALLO

CATION

BR

AN

CH JA

NU

ARY

2013

03 BUDGET PREPARATION

03 BU

DG

ET

PR

EPA

RAT

ION

Learning Objectives

3

The ability to prepare a school budget ensuring full disclosure of all revenue and expenditure.

To confirm and enhance individual knowledge of current policy and best practice.

Learning OutcomesThe development and provision of a completely transparent budget.

To enable the participant to apply best practice procedures and apply relevant policies and guidelines.

03 BU

DG

ET

PR

EPA

RAT

ION

5

Contents

Page

Presentation slides 6

1. Introduction 22

2. Budget Preparation – Develop a Timeline 23

3. Budget Preparation Tasks 25

4. Budget Preparation Tasks – New Revenue – Departmental Funds 27

5. Budget Preparation Tasks – New Revenue – Locally Raised Funds 28

6. Budget Preparation – Expenditure 30

7. Consolidate Submissions 32

Sample Approved Submission Proforma (number 1) 34



8. Recording the Approved Budget on CASES21 Finance 37

9. Monitoring your Budget 39

Exercise 1 41

Exercise 2 42

Exercise 3 43

Exercise 4 44

Sample Reports - Operating Statement Detail 45

Sample Reports - Annual Sub Program Budget Variance 54

Sample Reports - Salaries Fortnightly Transaction Report 55

Sample Reports - Budget Submission Proforma 56

Sample Reports - Monthly Cash Flow Template 57

Budget Timeline 59

Exercise 1 Answers 61




03 BU

DG

ET

PR

EPA

RAT

ION

6

Presentation Slides

1

TALKING FINANCES 2013 03 BU

DG

ET PREPAR

ATION

Learning outcomes • The ability to prepare a school budget ensuring full disclosure of

ALL revenue and expenditure • To confirm and enhance your knowledge of current policy and

best practice

TALKIN

G FIN

ANC

ES 2013

03 BU

DG

ET

PR

EPA

RAT

ION

7

3


DG

ET PREPAR

ATION

Introduction to budgeting

Importance of budgeting • Expenditure control • Risks minimised • Better decision making • Student outcomes not compromised • Meaningful reports

2


DG

ET PREPAR

ATION

Topics covered • Importance of budgeting • Overview and timelines • Budget preparation • Entering, monitoring and reviewing the budget

03 BU

DG

ET

PR

EPA

RAT

ION

8

Presentation Slides

5


DG

ET PREPAR

ATION

Introduction to budgeting Overview Six Stages of Budgeting • Stage 1 Develop a timeline • Stage 2 Estimate revenue available • Stage 3 Invite submissions • Stage 4 Match submissions to resources available • Stage 5 Budget proposal to finance committee • Stage 6 Approval by school council

Reference: A Guide to Budget Management in Victorian Government Schools http://www.education.vic.gov.au/school/principals/finance/Pages/guidelines.aspx

4


DG

ET PREPAR

ATION

The budget cycle

03 BU

DG

ET

PR

EPA

RAT

ION

9

7


DG

ET PREPAR

ATION

Budget preparation

Carry Forward / Committed Funds • Cash Reserve • Cluster/Regional funds • Grants not fully expended • Carry forward balances for Sub programs

6


DG

ET PREPAR

ATION

Budget timeline (Refer to Page 23 of your workbook)

• Any variance on this is acceptable • The main focus is the school has a plan and the approval process is

completed by December • This allows the budget to be entered on the system before the

February school council meeting

03 BU

DG

ET

PR

EPA

RAT

ION

10

Presentation Slides

9


DG

ET PREPAR

ATION

Budget preparation Exercise 1 (Refer to Page 41 of your workbook) If the closing balances below were the final results at your school, which programs (if any) would you approve carry forward balances in the budget and why? Closing balances for:

Before/After School Care Canteen Parent’s Club Art SMS Administration English

$3,400 $1,000

$500 $1,000 $5,000

$500 ($200)

8


DG

ET PREPAR

ATION

Financial commitments summary • Completed as part of End of Year process • Identifies the intended purpose of any accumulated funds, including

an appropriate operating reserve • Specified categories used and timelines required in some instances • Operating Reserve: - Average of 2 months recurrent expenditure - Automatically adjusted for ‘Building Works’, ‘Ground Works’ and ‘Asset Write Down’ - Minimum cash reserve is $10,000 - Reserve can be reduced by schools but not increased

03 BU

DG

ET

PR

EPA

RAT

ION

11

11


DG

ET PREPAR

ATION

Budget preparation – new revenue continued

Locally Raised Funds • Parent payments (impact of changes to EMA) • Bank interest • Camps and excursions • Trading operations • Fundraising • Other locally raised funds

10


DG

ET PREPAR

ATION

Budget preparation – new revenue Departmental Funds • Cash Grant - SRP Budget Management Report • SRP Surplus (projected) - do not include in draft budget • SRP Deficit - should be included in draft budget • Credit to Cash • Cash to Credit • Specific Purpose Grants Note: The SRP Deficit will be deducted from Term 3 Cash Grant.

03 BU

DG

ET

PR

EPA

RAT

ION

12

Presentation Slides

13


DG

ET PREPAR

ATION

Budget preparation - estimating new revenue

Proposed New Revenue

Cash Grant

Government Provided Funds

Other DEECD Grants

Locally Raised Funds

Bank Interest

Subject Contributions

Fundraising Activities

Commission

Hire of School Facilities/Equipment

70001

70080

73002

74001

74101

74103

74201

9499

9499

9499

9499

9499

Total Estimated Revenue (NEW) $125,476

NEW Revenue

$89,900

$10,000

$5,000

$16,076

$2,000

$500

$2,000

$99,900

$25,576

12


DG

ET PREPAR

ATION

Budget preparation Exercise 2 (Refer to Page 42 of your workbook) Consider each of the areas noted and develop a strategy for how the information will be determined

03 BU

DG

ET

PR

EPA

RAT

ION

13

15


DG

ET PREPAR

ATION

Budget preparation - expenditure

Co-operative Loan Repayments • Split budget into Interest component (GL 86805) and principal

(GL40001) • Remember that Budgets and Actuals for principal repayments

will NOT show on Operating Statement Refer to Finance Manual for Victorian Government Schools: http://www.education.vic.gov.au/school/principals/finance/Pages/guidelines.aspx

14


DG

ET PREPAR

ATION

Budget preparation – proposed expenditure Recurrent Expenditure Expenditure associated with the day to day running of the school Capital Expenditure Assets with a value equal to or greater than $5,000 that provide benefit to the school for more than one year Future Spending Funds reserved to be expended in future years

03 BU

DG

ET

PR

EPA

RAT

ION

14

Presentation Slides

17


DG

ET PREPAR

ATION

Budget preparation - submissions Invite submissions from Program areas • Provide timeline and proforma to be completed • Sample proforma available at: http://www.education.vic.gov.au/school/principals/finance/Pages/cases21.aspx

16


DG

ET PREPAR

ATION

Chart of accounts • GL Codes, Programs, Sub programs, Initiatives and GST • GL expenditure code descriptions should not be repeated as Sub

programs • Up-to-date version found on the CASES21 website: http://www.education.vic.gov.au/school/principals/finance/Pages/cases21.aspx

03 BU

DG

ET

PR

EPA

RAT

ION

15

19


DG

ET PREPAR

ATION

Budget preparation – consolidating submissions

Consolidate submissions • Ensure that expenditure does not exceed available funds • Budget cannot show a deficit

18


DG

ET PREPAR

ATION

Budget preparation - submissions

80071

86104

86203

CRT’s

Class Materials

Reference Materials

4101 English

Margaret Evans

03 BU

DG

ET

PR

EPA

RAT

ION

16

Presentation Slides

21


DG

ET PREPAR

ATION

Entering budgets on CASES21 finance • Entering revenue budgets • Entering expenditure budgets • There is now the facility to export and import budgets from and to

CASES21 Refer to Section 6:Budgets in the CASES21 Finance Business Process Guide: http://www.education.vic.gov.au/school/principals/finance/Pages/cases21.aspx

20


DG

ET PREPAR

ATION

Budget approval • Budget proposal presented to finance committee • Provide a copy of proposed annual budget to each member

of school council • Approval by school council before the end of the year

03 BU

DG

ET

PR

EPA

RAT

ION

17

23


DG

ET PREPAR

ATION

Reviewing and adjusting the budget

Exercise 3 (Refer to Page 43 of your workbook) Once the budget is completed and approved by school council, should there be any further changes? Put into words your reasoning

22


DG

ET PREPAR

ATION

Reviewing and adjusting the budget • The budget should be reviewed regularly • Budget positions should be reported to school council • Variations should be investigated and explanations reported to

the finance committee and school council where appropriate • All adjustments to the budget must be approved by school

council • Appropriate action should be taken to adjust the budget and

adjust activities: - Revenue not anticipated - Expenditure not anticipated

03 BU

DG

ET

PR

EPA

RAT

ION

18

Presentation Slides

25


DG

ET PREPAR

ATION

Monitoring and reporting Exercise 4 (Refer to Page 44 of your workbook) What have you learnt in relation to ‘Monitoring the Budget’?

24


DG

ET PREPAR

ATION

Monitoring and reporting - key reports • Monitoring budgets at General Ledger level - Operating Statement (GL21150) • Monitoring budgets at Sub Program level - Annual Sub Program Budget Variance (KGLSUB21003) - Annual Sub Program Budget Report (GL21157) • Monitoring the SRP Budget - Salary Fortnightly Transaction Report

03 BU

DG

ET

PR

EPA

RAT

ION

19

26


DG

ET PREPAR

ATION

Cash Flow Budget • Prepare Projected Bank Balance for the year (refer page 57 of

your workbook) and monitor regularly • Predicts the liquidity of the school • Availability of cash when required

27


DG

ET PREPAR

ATION

Sample Cash Flow Budget Monthly Cash Flow TemplateHigh YieldOfficia l AccountInvestment 1

Balance at $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Expected Revenue JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBERCash GrantOther grantsCamps & Excurs ionsSubject contributionsCanteenHire of faci l i tesBASC parent paymentsSTLRBAS refundBank Interest

Total $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Expected Expenditure JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBERCRTNon teaching loca l payrol lPhoneElectrici tyGasContract CleaningCanteenComputer/Copier leasesPhotocopyingCamps & Excurs ionsEOY activi tiesSanitationPDBASCClass materia lsInspectionsUrgent WorksAdmin / Postage etcBAS payment

Total $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Projected Balance $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

03 BU

DG

ET

PR

EPA

RAT

ION

20

Presentation Slides

20

Presentation Slides

29


DG

ET PREPAR

ATION

Annual Sub Program Budget Variance Report • Refer to page 54 in your workbook

28


DG

ET PREPAR

ATION

Operating Statement • Refer to page 45 in your workbook

03 BU

DG

ET

PR

EPA

RAT

ION

21

31


DG

ET PREPAR

ATION

General support

• Finance website:

http://www.education.vic.gov.au/school/principals/finance/Pages/guidelines.aspx

• CASES21 Finance Business Process Guide: http://www.education.vic.gov.au/school/principals/finance/Pages/cases21.aspx

• Service Gateway: http://servicedesk.education.vic.gov.au

• Service Desk Phone: 1800 641 943

21

30


DG

ET PREPAR

ATION

Salary Fortnightly Transaction Report • Refer to page 55 in your workbook

03 BU

DG

ET

PR

EPA

RAT

ION

22

1. Introduction

School councils are required to account for all monies under their control and to prepare appropriate statements of financial transactions. A vital part of this process is the development and monitoring of the approved budget.

A budget is the calculation of potential revenue and proposed expenditure for the coming year. In the case of potential revenue, this should include the estimated revenue and funds that are available from the previous year.

Budgets help ensure that school expenditure is controlled. Successful management cannot be achieved without planning and monitoring of actual against the planned events to ensure targets are achieved.

The school should ensure that the budget planning process and administration of the budget throughout the year are fully documented.

Importance of Budgeting

The major advantage for schools in successfully managing their financial operations is to provide an optimum level of resources available to improve student outcomes. This can be linked to the School Strategic Plan where a plan for the school’s improvement in a variety of areas is endorsed.

Failure to effectively plan for future resource provision introduces a degree of risk in several key areas of school management. The extent of the risk can be directly linked to the budget preparation and monitoring tasks. For example:

1. If a school operates without an approved budget, potential risks include non-validation of the School Strategic Plan and the inability to monitor budget trends. The implications of this mean that the school council does not have the opportunity to confirm School Strategic Plan priorities, programs and projects compromising optimum student outcomes

2. Poor management of the financial operations will introduce risks relating to actual income and expenditure varying from planned income and expenditure which could result in income deficiencies and expenditure overruns. This can lead to staffing instability, financial instability, poor commitment control, program curtailments, creditor discontent and lost opportunities

Budgeting and Reporting

Communication to school council, KLA /coordinators and the school leadership team on budget and actual data is via a range of reports specifically tailored for the particular ‘audience’. For example, in CASES21 Finance, the recommended budget-related reports for the school leadership team and school council/finance committee are:

• Operating Statement Detailed/Summary (GL21150)

• Annual Sub program Budget Report (GL21157)

• Annual Sub program Budget Variance Report (KGLSUB21003)

03 BU

DG

ET

PR

EPA

RAT

ION

23

2. Budget Preparation – Develop a Timeline

Process

What has to be done What information is required

Step 1 Determine a timeline. Date of November and /or December school council meeting (and work backwards)

Step 2 Determine the estimated revenue for the following year.

Example Estimated Revenue

70001 Cash Grant 89,900

74001 Subject Contributions 16,076

74101 Fundraising 2,000

Estimated revenue (new) $107,976

Official a/c estimated funds

5,000

HYIA estimated funds 73,650

less Committed funds in official a/c

-5,000

Committed funds in HYIA -33,650

Estimated carry forward revenue

$40,000

Total estimated funding $147,976

Current year Balance Sheet and Operating Statement

Indicative SRP

Any other documentation that details next years funding.

! Handy Hint:

Develop the budget using the chart of accounts numbers and names. This will make it easier when entering data onto C21F.

Step 3 Ask for budget submissions from relevant staff.

Example proforma

Program Leader: Sub Program: Fred Smith 4001 Art

Exp Code Description Amount

86104 Classroom materials 3,200

86203 Reference materials 1,000

Total request $4,200

Complete a memo providing:• timeline• advise if the next years funding is expected to be higher or lower

• a proforma (example provided in this document) for staff to complete

• copy of the Annual Sub Program Variance report (KGLSUB21003)

• an indication of whether the person will receive carry forward funds in addition to their next year budget

• an indication if their budget will be reduced by the amount the person has gone over budget for the current year.

03 BU

DG

ET

PR

EPA

RAT

ION

24

What has to be done What information is required

Step 4 Match the requests for budgets to the available funding. If the requests do not exceed the estimated revenue complete the budget documentation.

If the request is greater than the estimated revenue call a meeting with the program leaders to determine where the adjustment/s should occur. Then complete the budget documentation.

Estimated revenue budget for the following year (refer step 2)

Step 5 Present budget document to finance committee.

Complete any required changes and submit to the school council for approval.

Completed budget document

Step 6 Final budget adopted by school council prior to end of the current year i.e. November or December

Final budget document approved by school council.

Best practice:

The budget should be completed prior to the year in which it relates. The allocations can be keyed into the C21F system in readiness for the first school council meeting in February.

03 BU

DG

ET

PR

EPA

RAT

ION

25

3. Budget Preparation Tasks

Prior to developing the annual budget, it is important to address a number of areas that will form an integral part of the budget document. For example:

Financial Commitment Summary/Cash Reserve Benchmark

Department policy requires schools to complete a ‘Financial Commitment Summary’ to identify the intended use of funds held that are in excess of the school’s Cash Reserve Benchmark (operating reserve).

The Cash Reserve Benchmark is calculated automatically, during the CASES21 Finance End of Year procedures, by obtaining the average of two months recurrent expenditure (from a school’s Operating Statement GL21150) adjusted for ‘Building Works (86504)’, ‘Ground Works (86505)’ and ‘Asset Write Down (89591)’ expenditure that has occurred during the school year. The minimum cash reserve will be set at $10,000 unless the bank balances are less than $10,000 in which case the cash reserve will be set to equal the bank balance. The system calculated reserve can be reduced but not increased by the school user.

It is important for schools to link all available school funds with educational opportunities that will benefit students, while at the same time retaining a safe level of cash to meet financial obligations as they fall due. The Financial Commitment Summary is therefore a reflection of the school’s short and long term plans, budget and cash flow projections.

All schools are required to complete the Financial Commitment Summary annually and to submit their commitments information as part of the CASES21 Finance End of Year procedures.

The annual Financial Commitment Summary must be endorsed by school council.

More information on financial commitments and school cash benchmark reserves can be found on the Financial Management website.

Cluster/Regional Funds

Should I include cluster/regional funds in the budget?

Yes. While schools hold these funds on behalf of clusters or the region, the funds are part of the school’s bank account and therefore must be noted as “committed funds” in the budget preparation document.

Grants not fully expended

Should I include unspent grant funds in the budget?

Yes. Unspent grant funds are part of the cash held in bank accounts at the end of the year and become a commitment in the budget preparation document.

03 BU

DG

ET

PR

EPA

RAT

ION

26

Carry forward balances in Sub programs.

Should I include unspent balances in Sub programs in the budget?

Each school should have their own policy relating to unspent balances for Sub programs which do not have a specific accountability requirement. Funds to be carried forward for sub programs should form part of a school’s annual budget.

Schools are discouraged from carrying forward funds for curriculum related sub programs.

Cash held in Bank Accounts

How do I treat cash held in the Official, HYIA and other bank accounts?

School council must be completely informed of all bank account balances and any funds to be held in reserve must be included as part of the master budget document.

Exercise 1: If the closing balances below was the final result at your school, which programs (if any) would you provide carry forward balances and why? Refer to page 41 in your workbook.

03 BU

DG

ET

PR

EPA

RAT

ION

27

4. Budget Preparation Tasks – New Revenue – Departmental Funds

School Cash Grant

What figure do I use for next year’s Cash Grant?

If your Indicative SRP has the most up to date estimated enrolment figures, then the figure in the SRP should be used.

If the estimated enrolments are substantially higher or lower (based on more up to date information) then the school should access the SRP website and use the planning tool to determine a more realistic figure.

SRP Deficit

If the school has an SRP Deficit in the current year, do I include this in the next year’s budget?

Yes. An SRP deficit incurred in the previous year will be deducted from the school’s cash grant in Term 3. If the amount exceeds the amount of the school’s Term 3 cash grant, the balance will be deducted from the term 4 cash grant.

Credit to Cash Transfers from the SRP

Should I include proposed Credit to Cash transfers from the SRP?

Yes. If the school has potential to complete a CCT then it should be included in the budget as additional revenue.

Cash to Credit Transfers to the SRP

Should I include cash to credit transfers in the budget? (For example, an employee who is paid via eduPay, but funded from locally raised funds)

Yes. A cash to credit transfer is estimated expenditure to the school and therefore should be included.

Specific Purpose Grants

If I know that the school will be receiving a specific grant in the following year, should I include this in the budget?

Yes, if you are 100% sure. The grant will become anticipated revenue and anticipated expenditure in the school’s budget.

It is recommended that the school does not include a grant that they “hope” to receive.

03 BU

DG

ET

PR

EPA

RAT

ION

28

5. Budget Preparation Tasks – New Revenue – Locally Raised Funds

Student materials, service charges and parent payments

What figure should I use for parent payments?

The budget should be prepared based on the school’s historical collection rate not the total amount invoiced to all parents.

Bank Interest

What figure should I use for bank interest?

Estimation of the anticipated revenue from bank interest will vary depending on the balance in bank accounts at the start of the year and the school’s anticipated cashflow.

It is not always advisable to use the previous year’s collection amount as the school may have received large grants that boosted their revenue, and would not apply in the budget year. Recommendation is to be conservative and if additional revenue is received through the year, the school has the capacity to spend this in other areas, if approved by school council.

Camps and Excursions

How do I treat camps and excursions?

Schools should include a budget for camps and excursions.

Schools do not aim to make a profit on camps and excursions, therefore the revenue and estimated expenditure would be the same.

Some schools put an amount aside to cover the costs of students who cannot afford to attend. The school would include this estimated expenditure in the budget and therefore the estimated revenue would be less than estimated expenditure.

Fundraising activities/Trading Operations

Should I allocate a budget for fundraising activities and trading operations?

Yes. Consideration should be given to the planning of fundraising activities/trading operations for the year. Some things to consider are:

• Does the school have a fundraising activities/trading operations policy?

• Is the profit from the fundraising activities/trading operations going to be used for a specific program or project?

• Will it be spent in the same year it is raised?

In relation to fundraising activities/trading operations the revenue budget is an estimate of the total funds that expect to be raised whilst the expenditure budget will be the estimated costs of raising the funds.

Profit gained as a result of the fundraising activities/trading operations will form part of the sub program budget that has been identified to receive the funds, for example, school equipment, grounds maintenance etc.

03 BU

DG

ET

PR

EPA

RAT

ION

29

Other Locally Raised Funds

Schools receive other forms of revenue throughout a school year and can be included in the revenue budget if there is a 100% certainty of collection. These can include:

• Commission – from school photographer

• Donations – sponsors for end of year activities or presentation night

• Canteen Lease – where canteen is outsourced

• Hire of School Facilities – permanent use of the school’s facilities by outside parties or groups that should be agreed upon in the previous year.

• Sponsorships – includes annual scholarships

• Advertising – through the school’s newsletter or signage around the school

• Full Fee Paying Overseas Students

Exercise 2: Address each of the areas on page 42 of your workbook and for any that relate to your school, develop a strategy for how the information will be determined.

5. Budget Preparation Tasks – New Revenue – Locally Raised Funds (continued)

03 BU

DG

ET

PR

EPA

RAT

ION

30

6. Budget Preparation – Expenditure

Having completed the budget preparation tasks, the actual budget preparation can begin. All programs/sub programs to receive a budget are identified. At the end of each school year, the funds held in bank accounts represent unspent money from that year. These unspent funds may relate to unspent specific purpose grants or belong to sub programs that are entitled to spend their surplus in the next year and will therefore become part of the budget preparation. If a negative figure results, this is also part of the preparation.

Recurrent Expenditure

Recurrent expenditure relates to items purchased that are associated with the day to day running of the school, are of an ongoing nature and are purchased for the current year.

• Purchasing consumables for classroom use

• Payment of utilities and other administrative costs

• Building Services e.g. contract cleaning, refuse and garbage

• CRTs, professional development

Best Practice

Always use the chart of accounts codes when developing the budget. This will make it easier to enter data onto CASES21 Finance and will make the reports more meaningful to school council.

Capital Expenditure

Capital expenditure relates to asset purchases with a value equal or greater than $5,000 that will be of benefit to the school beyond the current school year.

It is recommended that capital expenditure budgets and actual expenditure are processed against one school defined sub program within the General Purpose (930) program area rather than across many individual sub programs.

Future Spending

The school has money put aside to spend in future years, is this included in the budget?

Yes, a school’s master budget worksheet must account for all funds held by the school and anticipated revenue, which includes money set aside for future spending.

It is recommended that these funds are not entered into CASES21 Finance as expenditure budgets, but retained in the Annual Master Budget to inform school council and for future reference.

Cooperative Loan Repayments

How do I show the Co-operative loan repayments budget in CASES21 Finance?

When preparing the school’s annual budget it is important to show the principal and interest expenditure budgets on the master budget worksheet.

Because the principal is coded to GL 40001 when processing payments, a budget cannot be input against this code.

Only revenue (7xxxx codes, expenditure (8xxxx codes) and capital (262xx codes) can have budgets input against them in CASES21 Finance to reflect on the Operating Statement. Code 40001 is a Balance Sheet code and therefore will not show on the Operating Statement.

The interest component of cooperatives is recorded in CASES21 Finance using code 86805 and therefore an expenditure budget can be recorded for this portion.

03 BU

DG

ET

PR

EPA

RAT

ION

31

Budget Preparation – Submissions

Program coordinators should be advised that next year’s budget is being prepared and what the school council’s policies and priorities are to be for the year so that the needs of the educational programs may be assessed.

All submissions should indicate what funding is required to cover both recurrent and capital expenditure. A date should be specified for all submissions to be received by the budget coordinator. This date should allow enough time for proper resource estimates to be prepared.

Where submissions are required, some guidance should be given to coordinators by providing expenditure codes and descriptions. These should be based on the codes the coordinators use for the current year’s budget. Copies of the budget variance reports from the current year will be useful as they will provide a guide as to the type of expenditure the sub program typically utilises. The proforma in Section 7 represents one example of a budget submission template which could be used to facilitate the collection of budget submissions from all who participate in the budget process.

Proformas

Should I have a standard proforma for budget submissions?

Yes, schools can use their own proformas, but they should be in line with the chart of accounts and preferably in Excel. Refer to samples in Section 7.

Chart of Accounts

Schools are required to record all financial transactions as per the designated chart of accounts codes. There is provision in the school level chart of accounts to accurately code all funds to ensure effective monitoring and reporting for management and school council.

In CASES21 Finance, the chart of accounts comprises of General Ledger (GL) and Programs, Sub programs and Initiatives. The importance of correct coding prior to data entry is critical to the credibility, reliability and accuracy of information prepared for reporting purposes.

The latest version of the chart of accounts, with glossary, is available on the CASES21 Website located at www.education.vic.gov.au/school/principals/finance/cases21.aspx

6. Budget Preparation – Expenditure (continued)

03 BU

DG

ET

PR

EPA

RAT

ION

32

7. Consolidate Submissions

Consolidate expenditure submissions and make final adjustments to sub program requests in line with available revenue.

This stage brings together all funds held by the school, anticipated revenue for the budget year and proposed expenditure. It will then become clear whether there are adequate funds available to meet the requests made.

A well prepared annual budget will ensure a complete picture of school funds, displaying how much the school holds (to be carried forward), how much will be received (new revenue), how much will be spent (expenditure) and how much will be carried forward for future projects.

A key point for schools to note is that the total funds accounted for in a school’s annual expenditure budget (recurrent, capital and future projects) should equal the total amount of funds available to be distributed (carry forward funds plus new revenue).

This is to ensure that all revenue, including funds that are allocated to future budget periods, are considered and reported to school council. However, only funds that are to be received or expended in the budget year are to be entered as budgets onto CASES21 Finance. A BUDGET CANNOT SHOW A DEFICIT.

03 BU

DG

ET

PR

EPA

RAT

ION

33

Budget Submission 201X

Sub Program Name & Code: 4101 English

Sub Program Coordinator Name: Margaret Evans

Total Estimated Carried forward : $0

Instructions

Please ensure you use the attached general ledger expenditure codes and descriptions when preparing your budget request. The top section is to be used for consumables and the lower section is to be used for equipment >$5,000.

Proposed Recurrent Expenditure

Code Description Request Approved

80071 CRT's

86101 Office/Teacher Requisites

86104 Class Materials

86203 Reference Materials

86803 Affiliations

89302 Camps/Excursions/Activities

Total Proposed Recurrent Expenditure $0 $0

Proposed Equipment Expenditure (If applicable) Cost

Total Proposed Capital Expenditure $0 $0

Notes:

7. Consolidate Submissions (continued)

03 BU

DG

ET

PR

EPA

RAT

ION

34

Sample Approved Submission Proforma (number 1)


Sub Program Name & Code: 4101 English

Sub Program Coordinator Name: Margaret Evans

Total Estimated Carried forward : $0



80071 CRT's $4,000 $3,600

86101 Office/Teacher Requisites

86104 Class Materials $2,500 $2,500

86203 Reference Materials $3,000 $2,400

86803 Affiliations

89302 Camps/Excursions/Activities $2,000 $2,000

Total Proposed Recurrent Expenditure $11,500 $10,500

Proposed Equipment Expenditure (If Applicable) Cost

Digital camera $1,100

DVD Player $800

Total Proposed Capital Expenditure $0 $0

Notes:

English submitted a request for $1,100 Digital Camera and $800 DVD Player (attractive assets).

These amounts were approved – but will form part of the School Assets Sub program (9351) budget.

03 BU

DG

ET

PR

EPA

RAT

ION

35



Sub Program Name & Code: 7101 Before/After School Care

Sub Program Coordinator Name: John Smith

Total Estimated Carried forward : $2,000

New Revenue

71002 Before/After School Care Grant $7,560

74401 Before/After School Care $9,500

Total Estimated Revenue (NEW): $17,060

Total Estimated Funds Available: $19,060



86102 Photocopying $0

86104 Class Materials $3,000 $2,060

86203 Reference Materials $2,500 $2,000

86302 Telephone $6,000 $5,000

86403 Leased/Hired Equipment $0

86452 Electricity $2,000 $2,000

86502 Contract Cleaning $3,000 $3,000

86802 Insurance $5,000 $5,000

89302 Camps/Excursions/Activities $0

Total Recurrent Expenditure $21,500 $19,060

Capital Expenditure (If Applicable)

26210 Furniture and Fittings >$5,000

26215 Plant & Equipment >$5,000

Total Capital Expenditure $0 $0

Notes:

03 BU

DG

ET

PR

EPA

RAT

ION

36



Sub Program Name & Code: 9351 School Assets

Sub Program Coordinator Name: Jane Smith

Total Estimated Carried forward : $17,500

New Revenue

70080 Other DEECD Grants $25,600

Total Estimated Revenue (NEW): $25,600

Total Estimated Funds Available: $43,100



Assets <$5,000 $4,000 $4,000

26203 Motor Vehicles >$5,000

26205 Computers/IT equip >$5,000

26207 Printers/Scanner >$5,000

26208 Computer Software >$5,000

26210 Furniture & Fittings >$5,000

26211 Musical Equipment >$5,000 $6,000 $6,000

26212 Office Equipment >$5,000 $5,000 $5,000

26214 Communications Equipment >$5,000

26215 Plant & Equipment >$5,000

26216 Sporting Equipment >$5,000 $5,600 $5,600

26220 Other Assets >$5,000 $5,000 $5,000

29102 Cultural Assets >$5,000

Total Asset Expenditure $25,600 $25,600

Notes:

$17,500 Carried forward from last year is committed for specific replacement of computers at a future date, not this year.

$1,900 requested by English sub program for attractive assets, was approved and is included in the School Assets budget as assets less than $5,000.

03 BU

DG

ET

PR

EPA

RAT

ION

37

8. Recording the approved budget on CASES21 FinanceAll schools must enter annual revenue budgets as well as annual expenditure budgets.

A feature of CASES21 Finance is the functionality to use a “Revenue Control” (9499) sub program to capture the revenue budget component for the majority of sub programs.

This saves processing time and the need to enter a revenue budget (and receipts) separately at individual sub program level.

If the revenue budget is not entered onto the C21F system, the Operating Statement will not have an annual budget and therefore become meaningless.

Best practice:

Determine before budget data entry which individual sub programs will display a revenue budget and expenditure budget on the CASES21 Finance reports. This will ensure the “Sub program Budget Variance Reports” contain the appropriate information for the particular audiences.

Data entry and report display

If a school was to receive $200,000 for the cash grant, it would show against sub program 9499 as cash grant $200,000 and on the Operating Statement annual budget $200,000. As the cash grant is received quarterly it would be expected to be entered into each quarter. See example below.

! Handy Hint:

Exception to the rule (not an exhaustive list)

Enter revenue and expenditure budgets relating to: • Before/After School care • Canteen • Uniform Shop • Regional Initiatives • Fundraising • Camps & Excursions

! Handy Hint:

Check your Operating Statement to ascertain if you have entered an annual revenue budget for each revenue source.

03 BU

DG

ET

PR

EPA

RAT

ION

38

! Handy Hint:

The “CASES21 Finance Business Process Guide” provides instructions and guidelines for the data entry of budgets in Section 6: Budgets.

8. Recording the approved budget on CASES21 Finance (continued)

03 BU

DG

ET

PR

EPA

RAT

ION

39

9. Monitoring your Budget

CASES21 Finance supports the ‘best practice’ that actual financial data entry follows a planned budgeted process.

It is imperative that the Operating Statement is reviewed regularly to ensure the planned revenue and expenditure is within budget.

The Operating Statement (GL21150) is the key report to use for monitoring budget against actual for both revenue and expenditure. Refer to ‘The Operating Statement’ a practical example and explanation located on the CASES 21 website for further information.

The Annual Sub Program Budget Report (GL21157) should be used to monitor sub programs. The report produces two sections, a Revenue Report that lists sub programs detailing the revenue budget and revenue received. This report should be blank except for those specific sub programs that require a revenue budget for example, cluster funds, uniform shop etc. The Expenditure Report section should have a budget and expenditure against each active sub program.

Monitoring revenue at sub program level will be simplified if the majority of revenue is budgeted to 9499 Revenue Control and the number of other sub programs with a revenue budget is limited to those that either have accountability requirements or require a profit and loss statement to be prepared.

The Annual Sub Program Budget Variance Report (KGLSUB21003) should be used to monitor spending against individual General Ledger budgets within the program.

The SRP Budget Management Report (Indicative, Confirmed, Revised) and the Salaries Transaction Report (SRP) should also be referenced in conjunction with the reports above to monitor the financial position of the school. www.education.vic.gov.au/school/principals/finance/cases21.aspx

Adjusting budgets during the year

During the year it may become necessary for schools to make adjustments to their annual revenue and expenditure budgets, for example, when the confirmed SRP budget is received it may be necessary to increase or reduce the annual budget accordingly as enrolments may have changed.

When a budget adjustment is required, clear documentation must be kept to record the change.

Adjustment to budgets should be made in any instances where unanticipated revenue is received or expenditure is incurred where provision for these items has not previously been made in the school’s annual budget and the amounts are of a significant or material nature. Any adjustments to the budget will need to be approved by School Council.

Exercise 4: What have you learnt in relation to ‘Monitoring the Budget’? Refer to page 44 in your workbook.

Best practice:

If amendments are made, the revised budget on CASES21 Finance should match the revised approved School Master Budget.

Cash Flow Budget:

A cash flow budget is a useful means of estimating and monitoring the cash available to the school throughout the year. A school council is required to develop and monitor a cash flow budget if investments are held by the school. Refer to the School Investment Policy and Guidelines located on the Financial Management website.

03 BU

DG

ET

PR

EPA

RAT

ION

40

To estimate the cash flow, the difference between the budgeted receipts and payments for each month is calculated. It is essential that the projected balance is always positive. The CASES21 Finance Cash Flow Statement (GL21151) is an excellent resource for analysing a school’s cash flow on a monthly basis. The actual figures when compared with those projected will clearly show problems in the cash flow and signal the need for caution and possible action.

The preparation of this type of budget, which complements the normal revenue and expenditure budgets, although somewhat time-consuming in preparation and maintenance (monitoring), provides the school council with a valuable tool in the financial control of the school’s operations.

Schools must plan to always have sufficient cash available to cover payments.

Cash Flow Warning Signs:

The following situations are examples of warning signs where closer examination is necessary and corrective action, if warranted, should be taken.

• Collections for the period are markedly lower than was anticipated.

• Expenditure for parts of the budget are higher than was anticipated.

• Cash resources available to the school are low (after allowing for any funds previously surplus to requirements and invested elsewhere) and large commitments have still to be met.

• Increase in cost of supplies purchased for resale to pupils but collections are low.

9. Monitoring your Budget (continued)

03 BU

DG

ET

PR

EPA

RAT

ION

41

Exercise 1

If the closing balances below were the final results at your school, which programs (if any) would you approve carry forward balances in the budget and why?

Closing balances for: $Carry Forward

Yes/NoReasoning

Before and After School Care

Canteen (trading operations) 1,000

Parents’ Club 500

Art 1,000

SMS Targeted Maintenance 5,000

Administration 500

English (200)

3,400

03 BU

DG

ET

PR

EPA

RAT

ION

42

Exercise 2

Address each of the areas below and for any that relate to your school, develop a strategy for how the information will be determined.

Budget Preparation Tasks

Task Strategy

Subject Contributions

Camps and Excursions

Trading Operations

Cash Grant

Credit/Cash and Cash/Credit Transfers

Workforce Bridging

Cluster Funds

Revenue held in Bank Accounts

Balances in Sub programs

Capital Expenditure

03 BU

DG

ET

PR

EPA

RAT

ION

43

Exercise 3

Once the budget is completed and approved by school council, should there be any further changes? Put into words your reasoning.

03 BU

DG

ET

PR

EPA

RAT

ION

44

Exercise 4

What have you learnt in relation to ‘Monitoring the Budget’?

03 BU

DG

ET

PR

EPA

RAT

ION

45

Sample Reports99

91:C

AS

ES

21 T

rain

ing

Sch

ool

Gen

eral

Led

ger

Ope

ratin

g St

atem

ent

- Det

ail

for t

he p

erio

d en

ding

30

Apr

il 20

XX

Cur

rent

Month

Yea

r to D

ateAn

nual

% of

Bud

get

Last

Year

GL C

ode

Acco

unt T

itleAc

tual

Budg

etVa

rianc

eAc

tual

Budg

etVa

rianc

eBu

dget

Rece

ived

Actua

l

REVE

NUE

Dep't

Gra

nts

7000

1Ca

sh G

rant

215,6

3021

5,630

-43

1,260

431,2

60-

862,5

2050

124,5

0070

002

Ed'n

Maint

enan

ce A

llowa

nce

--

--

6,500

-6,50

06,5

000

420

7008

0Ot

her D

ep't G

rants

-11

,348

-11,3

482,0

0038

,809

-36,8

0938

,809

52,0

00

215,6

3022

6,978

-11,3

4843

3,260

476,5

69-4

3,309

907,8

2948

126,9

20

Com

mon

wealt

h Go

vern

men

t Gra

nts

7100

2Be

fore/A

fter S

choo

l Car

e Gra

nt-

--

-7,5

60-7

,560

7,560

0-

00

00

7,560

-7,56

07,5

600

-0

Stat

e Gov

ernm

ent G

rant

s

00

00

00

0-

-0

Othe

r73

001

Reim

burse

ments

--

--

--

--

162

7300

2Int

eres

t Rec

eived

1,498

-1,4

983,8

085,0

00-1

,192

5,000

7671

9

1,498

01,4

983,8

085,0

00-1

,192

5,000

7688

1

Loca

lly R

aised

Fun

ds74

001

Subje

ct Co

ntribu

tions

--

-64

,340

18,34

445

,996

18,34

435

113

,652

7410

1Fu

ndra

ising

Acti

vities

--

--

6,000

-6,00

06,0

000

-74

102

Dona

tions

--

--

--

--

-74

103

Comm

ission

--

--

1,500

-1,50

01,5

000

-74

201

Hire

Sch

ool F

acilit

ies/E

quip

100

-10

030

05,9

00-5

,600

5,900

531

874

202

Cante

en Le

ase

--

--

1,100

-1,10

01,1

000

-74

301

Camp

s/Exc

ursio

ns/A

ctivit

ies79

5-

795

11,69

39,5

002,1

939,5

0012

311

,565

22 N

ovem

ber 2

012

15:

511

[GL2

1150

]

03 BU

DG

ET

PR

EPA

RAT

ION

46

Sample Reports

9991

:CAS

ES21

Tra

inin

g Sc

hool

Gen

eral

Led

ger

Ope

ratin

g St

atem

ent

- Det

ail

for t

he p

erio

d en

ding

30

April

20X

X

Cur

rent

Month

Yea

r to D

ateAn

nual

% of

Bud

get

Last

Year

GL C

ode

Acco

unt T

itleAc

tual

Budg

etVa

rianc

eAc

tual

Budg

etVa

rianc

eBu

dget

Rece

ived

Actua

l

7440

2Tr

ading

Ope

ratio

ns2,6

06-

2,606

9,831

-9,8

31-

-2,6

8174

580

Othe

r Loc

ally R

aised

Fun

ds26

3-

263

263

-26

3-

-75

3,764

03,7

6486

,426

42,34

444

,082

42,34

420

428

,291

Tota

l Ope

ratin

g Re

venu

e22

0,892

226,9

78-6

,086

523,4

9553

1,473

-7,97

896

2,733

5415

6,091

22 N

ovem

ber 2

012

15:

512

[GL2

1150

]

03 BU

DG

ET

PR

EPA

RAT

ION

47

9991

:CA

SE

S21

Tra

inin

g S

choo

lG

ener

al L

edge

r

Ope

ratin

g St

atem

ent

- Det

ail

for t

he p

erio

d en

ding

30

Apr

il 20XX

Cur

rent

Month

Yea

r to D

ateAn

nual

% of

Bud

get

Last

Year

GL C

ode

Acco

unt T

itleAc

tual

Budg

etVa

rianc

eAc

tual

Budg

etVa

rianc

eBu

dget

Expe

nded

Actua

l

EXPE

NDIT

URE Sa

laries

and

Allo

wanc

es80

052

Othe

r Non

Tea

ching

Staf

f1,5

28-

1,528

10,23

98,0

002,2

398,0

0012

810

,582

8007

1Ca

sual

Relie

f Tea

ching

Staf

f-

--

4,115

17,00

0-1

2,885

17,00

024

17,73

080

080

Supe

rann

uatio

n55

8-

558

1,083

1,800

-717

1,800

602,5

48

2,086

02,0

8615

,437

26,80

0-1

1,363

26,80

058

30,86

0

Bank

Cha

rges

8280

1Ba

nk C

harg

es-

--

--

--

-15

00

00

00

0-

15

Cons

umab

les86

101

Offic

e/Tea

cher

Req

uisite

s18

,295

-18

,295

19,26

733

,000

-13,7

3333

,000

5812

286

102

Photo

copy

ing2,2

2741

71,8

119,2

2712

,667

-3,43

916

,000

58-

8610

3Pr

inting

2,036

-2,0

362,0

366,3

45-4

,309

6,345

32-

8610

4Cl

ass M

ateria

ls8,3

95-

8,395

11,39

531

,260

-19,8

6531

,260

3639

286

105

Comp

uter S

oftwa

re <

$500

0-

--

--

--

-30

1

30,95

341

730

,537

41,92

583

,272

-41,3

4686

,605

4881

5

Book

s and

Pub

licat

ions

8620

1Lib

rary

Book

s59

4-

594

1,792

10,00

0-8

,208

10,00

018

-86

202

Clas

s Sets

<$5

000

--

--

--

--

709

8620

3Re

feren

ce M

ateria

ls-

--

605

14,50

0-1

3,895

14,50

04

1,473

594

059

42,3

9624

,500

-22,1

0424

,500

102,1

82

Com

mun

icatio

n co

sts

8630

1Po

stage

45-

4545

575

0-2

9575

061

1,500

22 N

ovem

ber 2

012

15:

513

[GL2

1150

]

Sample Reports

03 BU

DG

ET

PR

EPA

RAT

ION

48

Sample Reports

9991

:CA

SE

S21

Tra

inin

g S

choo

lG

ener

al L

edge

r

Ope

ratin

g St

atem

ent

- Det

ail

for t

he p

erio

d en

ding

30

Apr

il 20XX

Cur

rent

Month

Yea

r to D

ateAn

nual

% of

Bud

get

Last

Year

GL C

ode

Acco

unt T

itleAc

tual

Budg

etVa

rianc

eAc

tual

Budg

etVa

rianc

eBu

dget

Expe

nded

Actua

l

8630

2Te

lepho

ne1,2

23-

1,223

3,651

21,10

0-1

7,449

21,10

017

3,329

8630

3Int

erne

t-

--

--

--

-1,8

18

1,269

01,2

694,1

0521

,850

-17,7

4521

,850

196,6

47

Equi

pmen

t/Main

tena

nce/H

ire86

401

Furn

iture

/Fitt'

gs <

$500

0-

--

--

--

-1,1

1786

402

Repa

irs/M

aint-F

urnit

ure/E

quip

10,11

3-

10,11

310

,113

18,50

0-8

,387

18,50

055

575

8640

3Le

ased

/Hire

d Equ

ipmen

t-

--

-4,8

60-4

,860

4,860

0-

8640

4Co

mpute

r Equ

ipmen

t <$5

000

--

--

28,00

0-2

8,000

28,00

00

1,091

8640

7Ot

her P

lant a

nd E

quip

<$50

00-

--

-6,0

00-6

,000

6,000

0-

10,11

30

10,11

310

,113

57,36

0-4

7,247

57,36

018

2,783

Utilit

ies86

452

Elec

tricity

3,545

-3,5

458,9

2720

,500

-11,5

7320

,500

441,8

2786

453

Gas -

Main

s2,3

29-

2,329

2,329

6,500

-4,17

16,5

0036

-

5,875

05,8

7511

,256

27,00

0-1

5,744

27,00

042

1,827

Prop

erty

Ser

vices

8650

1Sa

nitati

on-

--

918

2,000

-1,08

22,0

0046

-86

502

Contr

act C

leanin

g3,0

45-

3,045

12,18

275

,500

-63,3

1875

,500

16-

8650

3Re

fuse a

nd G

arba

ge2,1

82-

2,182

2,182

2,500

-318

2,500

87-

8650

4Bu

ilding

Wor

ks20

,909

-20

,909

42,15

518

6,710

-144

,555

186,7

1023

-86

505

Grou

nd W

orks

--

-25

,209

112,3

54-8

7,145

112,3

5422

-

26,13

60

26,13

682

,645

379,0

64-2

96,41

937

9,064

220

Trav

el &

Subs

isten

ce

22 N

ovem

ber 2

012

15:

514

[GL2

1150

]

03 BU

DG

ET

PR

EPA

RAT

ION

49

Sample Reports99

91:C

AS

ES

21 T

rain

ing

Sch

ool

Gen

eral

Led

ger

Ope

ratin

g St

atem

ent

- Det

ail

for t

he p

erio

d en

ding

30

Apr

il 20XX

Cur

rent

Month

Yea

r to D

ateAn

nual

% of

Bud

get

Last

Year

GL C

ode

Acco

unt T

itleAc

tual

Budg

etVa

rianc

eAc

tual

Budg

etVa

rianc

eBu

dget

Expe

nded

Actua

l

00

00

00

0-

0

Moto

r Veh

icle E

xpen

ses

00

00

00

0-

0

Adm

inist

ratio

n86

801

Adve

rtising

2,263

-2,2

632,2

633,5

00-1

,237

3,500

65-

8680

2Ins

uran

ce-

--

-10

,904

-10,9

0410

,904

0-

2,263

02,2

632,2

6314

,404

-12,1

4114

,404

160

Healt

h an

d Pe

rson

al De

velo

pmen

t

00

00

00

0-

0

Prof

essio

nal D

evelo

pmen

t86

910

Confe

renc

es/C

ourse

s/Sem

inars

2,682

-2,6

822,6

825,0

00-2

,318

5,000

54-

2,682

02,6

822,6

825,0

00-2

,318

5,000

540

Ente

rtain

men

t and

Hos

pita

lity

00

00

00

0-

0

Trad

ing

and

Fund

raisi

ng89

101

Trad

ing O

pera

tions

Pay

ments

2,587

-2,5

874,3

88-

4,388

--

2,738

8910

2No

n Pro

fit Tr

ading

Ope

ratio

ns-

--

--

--

-98

8910

4Fu

ndra

ising

Exp

ense

s-

--

--

--

--

22 N

ovem

ber 2

012

15:

515

[GL2

1150

]

03 BU

DG

ET

PR

EPA

RAT

ION

50

Sample Reports

9991

:CA

SE

S21

Tra

inin

g S

choo

lG

ener

al L

edge

r

Ope

ratin

g St

atem

ent

- Det

ail

for t

he p

erio

d en

ding

30

Apr

il 20XX

Cur

rent

Month

Yea

r to D

ateAn

nual

% of

Bud

get

Last

Year

GL C

ode

Acco

unt T

itleAc

tual

Budg

etVa

rianc

eAc

tual

Budg

etVa

rianc

eBu

dget

Expe

nded

Actua

l

2,587

02,5

874,3

880

4,388

0-

2,836

Supp

ort/S

ervic

e

00

00

00

0-

0

Misc

ellan

eous

8930

2Ca

mps/E

xcur

sions

/Acti

vities

2,294

-2,2

942,8

852,5

0038

52,5

0011

510

,909

8930

9AT

O Ch

arge

s/Pay

ments

-1-

-1-

--

--

3

2,293

02,2

932,8

842,5

0038

42,5

0011

510

,912

Tota

l Ope

ratin

g Ex

pend

iture

86,85

041

786

,433

180,0

9664

1,750

-461

,654

645,0

8328

58,87

8

Net

Ope

ratin

g Su

rplu

s/-D

efic

it13

4,042

226,5

61-9

2,519

343,3

99-1

10,27

745

3,675

317,6

5097

,213

Out

stan

ding

Ord

ers:

27,04

9

22 N

ovem

ber 2

012

15:

516

[GL2

1150

]

03 BU

DG

ET

PR

EPA

RAT

ION

51

Sample Reports99

91:C

AS

ES

21 T

rain

ing

Sch

ool

Gen

eral

Led

ger

Ope

ratin

g St

atem

ent

- Det

ail

for t

he p

erio

d en

ding

30

Apr

il 20XX

Cur

rent

Month

Yea

r to D

ateAn

nual

% of

Bud

get

Last

Year

GL C

ode

Acco

unt T

itleAc

tual

Budg

etVa

rianc

eAc

tual

Budg

etVa

rianc

eBu

dget

Expe

nded

Actua

l

CAPI

TAL

EXPE

NDIT

URE

2620

2Bo

oks a

nd Li

brar

ies-

--

--

--

-1,6

9026

205

Comp

uters/

IT eq

uipme

nt >$

5000

31,13

8-

31,13

831

,138

75,00

0-4

3,862

75,00

042

1,007

2620

7Pr

inter

s/sca

nner

s etc

>$50

00-

10,00

0-1

0,000

-40

,000

-40,0

0012

0,000

0-

2621

0Fu

rnitu

re an

d Fitti

ngs >

$500

0-

--

--

--

--

2621

1Mu

sical

Equip

ment

>$50

00-

--

--

--

--

2621

2Of

fice E

quipm

ent >

$500

0-

--

--

--

--

2621

4Co

mmun

icatio

ns E

quip

>$50

00-

--

--

--

--

2621

5Pl

ant &

Equ

ipmen

t >$5

000

--

--

--

--

-26

216

Spor

ting E

quipm

ent >

$500

0-

--

--

--

--

2622

0Ot

her A

ssets

>$5

000

--

--

--

--

-

Tota

l Cap

ital E

xpen

ditu

re31

,138

10,00

021

,138

31,13

811

5,000

-83,8

6219

5,000

162,6

98

Out

stan

ding

Ord

ers:

0

ASSE

T W

RITE

-DOW

NS89

591

Asse

t Write

-Dow

ns-

--

--

--

-As

set S

ale P

roce

eds

--

--

--

--

Tota

l Ass

et W

rite-

Down

s0

-0

0-

0-

-

PRIO

R YE

AR A

DJUS

TMEN

TS89

592

Prior

year

adj to

asse

ts-

--

--

--

--

Tota

l Prio

r Yea

r Adj

ustm

ents

00

00

00

0-

0

22 N

ovem

ber 2

012

15:

517

[GL2

1150

]

03 BU

DG

ET

PR

EPA

RAT

ION

52

9991

:CA

SE

S21

Tra

inin

g S

choo

lG

ener

al L

edge

r

Ope

ratin

g St

atem

ent

- Det

ail

for t

he p

erio

d en

ding

30

Apr

il 20XX

Cur

rent

Month

Yea

r to D

ateAn

nual

% of

Bud

get

Last

Year

GL C

ode

Acco

unt T

itleAc

tual

Budg

etVa

rianc

eAc

tual

Budg

etVa

rianc

eBu

dget

Expe

nded

Actua

l

Rep

ort N

otes

22 N

ovem

ber 2

012

15:

518

[GL2

1150

]

Sample Reports

03 BU

DG

ET

PR

EPA

RAT

ION

53

9991

:CA

SE

S21

Tra

inin

g S

choo

lG

ener

al L

edge

r

Ope

ratin

g St

atem

ent

- Det

ail

for t

he p

erio

d en

ding

30

Apr

il 20XX

We

certi

fy th

at th

is re

port

is a

true

and

fair

repr

esen

tatio

n of

the

scho

ol's

fina

ncia

l per

form

ance

for t

he s

peci

fied

perio

d.

Sch

ool P

rinci

pal

___

____

____

____

____

____

____

____

____

____

Dat

e _

____

____

____

____

___

Sch

ool C

ounc

il P

resi

dent

___

____

____

____

____

____

____

____

____

____

Dat

e _

____

____

____

____

___

22 N

ovem

ber 2

012

15:

519

[GL2

1150

]

Sample Reports

03 BU

DG

ET

PR

EPA

RAT

ION

54

Sample Reports

9991:CASES21 Training School

Annual Sub Program Budget VarianceFrom Sub Program 1301 to 1301

Sub Program 1301 Info & Comm Technology

ExpenditureUncommitted % Budget

Code Account title Annual budget YTD O/S Orders Funds Expended86101 Office/Teacher Requisites 5,000.00 4,090.91 909.09 81.8286402 Repairs/Maint-Furniture/Equip 9,000.00 7,150.00 1,850.00 79.4486404 Computer Equipment <$5000 28,000.00 5,127.25 22,872.75 18.3186407 Other Plant and Equip <$5000 6,000.00 372.00 5,628.00 6.2089302 Camps/Excursions/Activities 500.00 0.00 500.00 0.00

Totals 48,500.00 16,740.16 31,759.84 34.52

Capital Budget ExpenditureUncommitted % Budget

Asset Code Account title Annual budget YTD O/S Orders Funds Expended26205 Computers/ IT equipment >$5000 75,000.00 37,212.20 37,787.80 49.62

Totals 75,000.00 37,212.20 37,787.80 49.62

28/11/2012 18:35 1 [KGLSUB21003]

03 BU

DG

ET

PR

EPA

RAT

ION

55

Sample Reports

Employee ID Step EFT

0123 4 1.001.00

01234 2 0.31012345 4 1.00

1.31

0123456 3 1.001.00

01234567 2 1.00012345678 2 0.000987654 1 1.00

2.00

0987653 6 0.270.27

0987652 6 1.000987651 4 0.33

1.33

0999123 5 0.6009991234 5 0.51099912345 5 0.43

1.54

0987653 6 0.000.00

0123456 3 0.000.008.45

Employee ID Step EFT

01234567 2 0.000.000.00Total Outside Budget (1 detail records) $0.00 $406.00 $406.00

Jones, Mike GRT $0.00 $406.00 $406.00EBA 2008 Bonus Payments (1 detail records) $0.00 $406.00 $406.00

Name Salary Plan Exp Current Pay Exp YTD Payroll Liability

EBA 2008 Bonus Payments

Outside Budget

Teaching Practice Supervision (1 detail records) $0.00 $337.50 $337.50Total SRP (15 detail records) $26,836.84 $476,964.30 $519,510.83

Special Payments (1 detail records) $116.43 $1,746.45 $1,990.95Teaching Practice Supervision

Smith, Ann ACT $0.00 $337.50 $337.50

Integration Teacher Aides (3 detail records) $3,278.40 $52,573.76 $57,781.19Special Payments

FitzGerald, Lian 1PP $116.43 $1,746.45 $1,990.95

Kelly, Dan ES1 $1,082.36 $16,892.92 $18,628.84Beiber, Justin ES1 $953.82 $17,239.43 $18,685.81

Integration Teacher AidesBecker, Miranda ES1 $1,242.22 $18,441.41 $20,466.54

Anderson, Roberto ES1 $579.49 $5,180.29 $5,974.95Teaching Support Staff (2 detail records) $3,255.45 $53,075.30 $58,032.56

Para Professionals (1 detail records) $860.07 $15,858.57 $17,132.32Teaching Support Staff

Peter, Mary ES2 $2,675.96 $47,895.01 $52,057.62

Graduate Teacher (3 detail records) $5,847.03 $105,689.04 $114,993.53Para Professionals

FitzGerald, Lian 1PP $860.07 $15,858.57 $17,132.32

Singh, Amrita GRT $0.00 $3,276.34 $3,276.34Campos, Antonio GRT $2,820.28 $48,252.26 $52,839.15

Accomplished Teacher (1 detail records) $3,386.82 $60,603.85 $65,882.73Graduate Teacher

Jones, Mike GRT $3,026.75 $54,160.44 $58,878.04

Accomplished TeacherSmith, Ann ACT $3,386.82 $60,603.85 $65,882.73

Green, Sally EXR $4,235.84 $78,338.63 $85,104.54Expert Teacher (2 detail records) $5,415.15 $98,912.90 $107,499.75

Principal Class (1 detail records) $4,677.49 $88,166.93 $95,860.29Expert Teacher

Brown, Tom EXR $1,179.31 $20,574.27 $22,395.21

Principal ClassWhite, Jan PR1 $4,677.49 $88,166.93 $95,860.29

SRPName Salary Plan Exp Current Pay Exp YTD Payroll Liability

Salaries Fortnightly Transaction Report - 20XX99999 - Primary SchoolPay Period: 20XX Fortnight Ending: 01 Dec 20XX

Thursday, 22 November 2012 4:59 PM Page 1 of 1

03 BU

DG

ET

PR

EPA

RAT

ION

56

Sample Reports

Sample Sub Program Budget Submission Proforma 20XX

Budget Submission 20XX Sub Program Name & Code:Sub Program Coordinator Name:

Total Estimated Carried forward $0

Instructions

Code Description Request Approved80071 CRT's86104 Class Materials86203 Reference Materials86302 Telephone86303 Internet86403 Leased/Hired Equipment86452 Electricity86502 Contract Cleaning86505 Ground Works86802 Insurance89202 Technical Support - General89302 Camps/Excursions/Activities

$0 $0Proposed Capital Expenditure (If Applicable)

26210 Furniture and Fittings >$500026215 Plant & Equipment >$5000

$0 $0

Notes:

8/12/2010

Please ensure you use the attached general ledger expenditure codes and descriptions when preparing your budget request. The top section is to be used for consumables and the lower section is to be used for equipment >$5,000


Total Proposed Recurrent Expenditure

Total Proposed Capital Expenditure

03 BU

DG

ET

PR

EPA

RAT

ION

57

Cash Flow Budget - Monthly Cash Flow Template

Monthly Cash Flow TemplateHigh Yield

Official Account

Investment 1

Balance at $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Expected Revenue JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER

Cash Grant

Other grants

Camps & Excursions

Subject contributions

Canteen

Hire of facilites

BASC parent payments

STLR

BAS refund

Bank Interest

Total $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Expected Expenditure JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER

CRT

Non teaching local payroll

Phone

Electricity

Gas

Contract Cleaning

Canteen

Computer/Copier leases

Photocopying

Camps & Excursions

EOY activities

Sanitation

PD

BASC

Class materials

Inspections

Urgent Works

Admin / Postage etc

BAS payment

Total $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Projected Balance $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

03 BU

DG

ET

PR

EPA

RAT

ION

59

Budget Timeline

Month Action

June School council outlines budget process.

July Submission proformas prepared and issued to KLA’s, business manager (administration budget), parents club, school council subcommittee. All other programs requiring a budget e.g. SRC, asset replacement, professional development etc have proforma completed.

August Determine available possible funds for next year including amount of committed funds/reserves.

September All submissions are considered and matched with available funds. If necessary, consult with staff on amending budgets if requested expenditure exceeds available funds.

October Close purchase orders. Confirm carry forward amounts in programs. Amend budgets if necessary.

November Draft budget and circulate to management team, finance subcommittee for comment. Make necessary amendments.

December School council approves final budget for next year.

Any variance on this is acceptable. The main focus is the school has a plan and the approval process is completed by December. This allows budget to be entered on the system before the February school council meeting.

03 BU

DG

ET

PR

EPA

RAT

ION

61

Exercise 1 Answers

If the closing balances were the final results at your school, which programs (if any) would you approve carry forward balances in the budget and why?

Closing balances for: $Carry Forward

Yes/NoReasoning

Before and After School Care

Yes The nature of this activity justifies carry forward of any balance to the next year budget as it relates to a non-curriculum, commercial venture.

Canteen (trading operations) 1,000 Yes or No Trading operations require preparation of a Profit & Loss Statement each calendar year for revenue/expenditure relating to that year only. If the balance is not carried forward in the canteen budget, the net profit is included for the budget estimate.

Parents’ Club 500 Yes or No Depends on individual school and Parents’ Club decision to carry forward balances or to distribute to particular program/s.

Art 1,000 Yes or No Depends on school process whether KLA’s operate a recurrent budget (all expenditure is absorbed in the budget year) or not. Also, arrangements may be in place to allow KLA to carry over funds if saving for assets that may take 2+ years to purchase.

Schools Maintenance System (SMS)

Yes Targeted funds for SMS Targeted Maintenance should be carried over so that any unspent funds in the current year can be applied next year.

Administration 500 Yes/No School policy decision.

English (200) You will need to establish how the deficit occurred. The deficit can either be absorbed by the school or deducted from the budget for the following year.

3,400

5,000

03 BU

DG

ET

PR

EPA

RAT

ION

63

Exercise 2 Answers

Address each of the areas below and for any that relate to your school, develop a strategy for how the information will be determined.

Budget Preparation Tasks

Task Strategy

Subject Contributions Calculation based on historical collection rate. e.g. 150 students @ $60 each = $9,000. Historical collection rate is 80%. Therefore budget is $7,200.

Use code 9499

Note: The Operating Statement Annual budget will show $7,200, the YTD column will show $9,000.

Camps and Excursions There is not a carried forward profit that can be put towards additional revenue.

Options

1. Do not use 9499 Each camp/excursion to have separate sub programs and revenue and expenditure recorded against each one.

2. Use 9499 Camps and Excursion are not recorded separately as sub programs. All revenue recorded against 9499. The school uses the Operating Statement to determine if there is a profit/loss – issues with this being a consolidated view!

Trading Operations The estimated profit from trading operations should be included in the budget preparation. e.g. during a 12 month period, canteen has a total of $100,000 in revenue and $80,000 in expenditure making a net profit of $20,000. The net profit is additional revenue for the school to use and should be included in the budget estimated revenue.

Do not use code 9499 When recording actual receipts and payments, individual sub programs should be used and the revenue and expenditure included in the Profit/Loss report.

Cash Grant Option 1 Use Indicative SRP if estimated enrolments are realistic.

Option 2 Recalculate SRP using the Workforce Planner if estimated enrolments are unrealistic.

Use Code 9499

Credit/Cash and Cash/Credit Transfers Both these transfers are adjusted against the cash grant.

Credit to Cash Transfers increase the estimated cash grant budget. Cash to Credit Transfers decrease the estimated cash grant budget.

03 BU

DG

ET

PR

EPA

RAT

ION

65

Exercise 2 Answers (continued)

Workforce Bridging Workforce Bridging loan should be recorded as committed expenditure in the budget preparation.

Cluster Funds If the school has a balance at the end of the year, the available funding should be included in the budget preparation as committed funds. i.e money in the school bank account is revenue that cannot be used for school purposes.

Do not use code 9499

Record budget and actual receipts and payments against the sub program as this is required for acquittal.

Revenue held in Bank Accounts The money held in bank accounts at year end includes funding for carry forward balances and commitments e.g.

Official account $120,000 HYIA 200,000 Total $320,000 Less C/F balances 30,000 (to be used for sub programs)

Cluster funds 100,000

Available funds $190,000

Balances in sub programs Options

(1) All closing balances whether positive or negative be c/f. A negative c/f would be reduced from the following year budget e.g.

Maths request 10,000 Less negative c/f -1,000 Budget 9,000

(2) Carry forward only if the sub program has unpaid invoices or o/s orders that relate to the previous year e.g.

Science request 8,000 Plus unpaid invoice 2,000 Budget 10,000

(3) No carry forward, all available funding is included in the available revenue for the next year (excludes cluster funds etc).

Capital Expenditure Options

(1) Use 1 sub program to record capital expenditure against the school. In this instance an allocation would be provided and capital requests could be prioritised.

(2) Include capital expenditure against individual sub programs.

03 BU

DG

ET

PR

EPA

RAT

ION

67

Exercise 3 AnswersOnce the budget is completed and approved by school council, should there be any further changes? Put into words your reasoning.

During the year it may become necessary for schools to make adjustments to their

annual revenue and expenditure budgets, for example, when the confirmed SRP budget

is received it may be necessary to increase or reduce the annual budget accordingly as

enrolments may have changed.

When a budget adjustment is required, clear documentation must be kept to record the

change.

This means that not only should the revenue and expenditure budgets be updated

on CASES21 Finance, but the spread sheets detailing a school‘s annual budget

development should also be updated.

The updated annual budget, highlighting the adjustments, should be provided to school

council for approval and to ensure that the current budget position of the school

remains transparent for all key decision making bodies.

Adjustment to budgets should be made in any instances where unanticipated revenue is

received or expenditure is incurred where provision for these items has not previously

been made in the school‘s annual budget and the amounts are of a significant or

material nature.

For example:

• If additional revenue (unanticipated grant with an accountability requirement) is to be

spent in the current year the sub program revenue and expenditure budgets in both the

school‘s annual budget and CASES21 budgets will be required to be adjusted.

• If the additional revenue relates to a project in a future year the annual master

budget must be updated to reflect both the revenue and expenditure. The CASES21

Finance revenue control budget (9499) must also be updated to reflect the revenue

received in the current year. However, the expenditure budget in CASES21 would not

be updated as the funds are to be spent in a future year.

It is recommended that schools develop a method of variance reporting that explains

significant or material variations to school council on a regular basis.

03 BU

DG

ET

PR

EPA

RAT

ION

69

Exercise 4 Answers

What have you learnt in relation to ‘Monitoring the Budget’?

1. Use the “Operating Statement – Detailed” report to monitor the total school budget.

2. Use sub program reports to monitor individual sub programs. Do not use it to monitor the

school budget.

3. The Operating Statement should include a revenue budget.

4. Understand the flow-on effect to the Operating Statement with the use of Sub program 9499

Revenue Control.

5. Understanding the reason for the Operating Statement having a revenue budget that is less

than the expenditure budget. (Not necessarily a bad result) This could occur when

funds are held from the previous year for a major project and not funded from current

year revenue. These funds would be included in the Annual Master Budget but would

not show on the operating statement.

6. The Annual Sub Program Budget Report should only have budgeted and actual revenue

recorded against the specified school sub programs.

7. The importance of creating and monitoring a Cash Flow Budget.

03 budget preparation · 03 budget preparation. learning objectives. 3. the ability to prepare a...

Documents